SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report: July 27, 1999
(Date of earliest event reported)
VIDIKRON TECHNOLOGIES GROUP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 34-19218 13-3499909
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification Number)
One Evertrust Plaza, 11st Floor, Jersey City, New Jersey 07302
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (201) 938-0099
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Item 5. Other Events
On July 27, 1999, the Registrant issued a press release, a copy of
which is attached hereto as Exhibit 99.1, announcing PNC Bank action regarding
the Registrant's U.S. operating subsidiary and Registrant's following steps.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits.
99.1 Press release of the Registrant, dated July 27, 1999.
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Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned herewith duly authorized.
Date: July 28, 1999 VIDIKRON TECHNOLOGIES GROUP, INC.
(Registrant)
By: /s/ Phillip Siegel
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Phillip Siegel
Chairman and CEO
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EXHIBIT INDEX
Exhibit
99.1 Press release of the Registrant, dated July 27, 1999.
VIDIKRON TECHNOLOGIES GROUP ANNOUNCES PNC BANK ACTION
JERSEY CITY, NJ, JULY 27, 1999 - Vidikron Technologies Group, Inc. (the
"Company") (Nasdaq: VIDI) announced that PNC Bank has exercised its right of
setoff against all of Vidikron of America, Inc.'s ("Vidikron" the Company's U.S.
operating subsidiary) funds in accounts maintained at the Bank and has commenced
sending letters to all of Vidikron's customers notifying them to remit payments
directly to the Bank.
Vidikron's agreement with PNC Bank requires that Vidikron maintain all its
accounts and deposits with the Bank. As a result of these actions, the Company,
and its Vidikron subsidiary, may find it necessary to seek protection from
creditors under Chapter 11 of the Bankruptcy Code.
The Company has initiated a number of actions to avoid a bankruptcy filing. It
is negotiating for an infusion of new capital and the conversion of certain
indebtedness into equity, as well as a change in terms of certain outstanding
securities. In that respect, the Company has signed non-binding term sheets with
certain of its creditors and security holders. There can be no assurance that
Vidikron will avoid a bankruptcy proceeding, nor can the outcome of any such
proceeding on the Company's security holders be predicted.
Vidikron Technologies Group, Inc. is in the business of developing and marketing
technological innovations in the high-end home theater industry under its
premier Vidikron brand. The company distributes its products in over 46
countries worldwide.
The foregoing press release contains forward-looking statements, including
statements regarding, among other things, the Company's expectations of its
future business. These forward-looking statements are based largely on the
Company's expectations and are subject to a number of risks and uncertainties,
certain of which are beyond the Company's control. Actual results could differ
materially from these forward-looking statements as a result of a variety of
factors. In light of these risks and uncertainties, there can be no assurance
that the forward-looking statements contained in this press release will in fact
transpire or prove to be accurate.
