SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 13, 1996 (May 31, 1996)
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Eljer Industries, Inc.
(Exact name of registrant as specified in charter)
Delaware 1-10181 75-2270874
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) No.)
17120 Dallas Parkway, Dallas, Texas 75248
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (214) 407-2600
Not applicable
(Former name or former address, if changed since last report)
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Item 5 Other Events
On May 31, 1996, Eljer Industries, Inc. (the "Company", or "Eljer Industries")
settled its pending litigation with its former parent Household International,
Inc. ("Household International"). Under the terms of the settlement, Household
International will pay Eljer $27.150 million, which includes settlement of
counterclaims that Household International had against the Company.
The net proceeds of the settlement will be used initially to reduce the
Company's bank term debt. Ultimately, as part of a tentative settlement reached
in connection with the Chapter 11 proceeding of the Company's indirect
wholly-owned subsidiary United States Brass Corporation ("U.S. Brass"), the
Company expects to pay 75% of the net settlement proceeds, after legal fees and
expenses, into a trust to be created as part of a U.S. Brass reorganization
plan.
The litigation with Household International was commenced in 1993 and was
pending in Delaware Superior Court. Eljer Industries claimed that it was owed
money based on documents signed at the time the Company became independent from
Household International in April 1989.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ELJER INDUSTRIES, INC.
Date: June 13, 1996 By: /s/Brooks F. Sherman
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Brooks F. Sherman
Vice President - Finance &
Chief Financial Officer
(Principal Financial and
Accounting Officer)
