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: April 13, 1998
PRIDE COMPANIES, L.P.
(Exact name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction of Incorporation or Organization)
1-10473 75-2313597
(Commission file number) (I.R.S. Employer Identification No.)
1209 North Fourth
Abilene, Texas 79601
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (915) 674-8000<PAGE>
Item 5.
On March 22, 1998, Pride Companies, L.P. ("Pride") shut down
its refinery located near Abilene, Texas (the "Refinery"), one of
its principal assets.
On April 1, 1998, Pride filed an extension for the date of
filing its annual report on Form 10-K in order to review the
financial effects of the shut-down of the Refinery, including non-
cash charges to earnings, estimated severance costs, and reversals
of accruals, and to prepare accurate disclosures to be included in
the year-end financial statements and financial descriptions of
Pride's business. Pride is also in discussions with its
independent accountants and its lenders and other investors to
determine the nature and extent of the changes, if any, that will
be required to certain covenants in its credit agreement and other
agreements as a result of the shut-down of its Refinery and the
impact of the Refinery shut-down and such covenants on the
financial statements of Pride. Pride has been informed by its
lenders and other investors that, if changes to such covenants are
determined to be required and reasonable, such agreements will be
amended or waivers will be granted by Pride's lenders and investors
for the current fiscal year. There can be no assurances, however,
that any such amendments or waivers will be finalized. If such
amendments or waivers are determined to be required and are not
finalized, Pride would be in default under its credit agreement and
certain other agreements and all of the debt outstanding under its
credit agreement could therefore be treated as current liabilities.
Also, if such amendments or waivers are not obtained in a manner
satisfactory to the accountants for Pride, then Pride's financial
statements could be subject to certain "going concern"
qualifications.
When filed, the Form 10-K is expected to report a net loss for
the year ended December 31, 1997 of approximately $45.0 million,
compared to a net loss of $6.4 million for the year ended
December 31, 1996. The net loss for 1997 increased from 1996
primarily as a result of $41.4 million in costs associated with
ceasing Refinery operations. The $41.4 million in closure costs
included $40.4 million in noncash charges related to the writedown
of certain Refinery fixed assets. Operating cash flow (i.e.
operating income/(loss) plus depreciation) for the year ended
December 31, 1997 was negative $31.6 million compared to positive
$8.3 million for the year ended December 31, 1996. Excluding the
$41.4 million of costs associated with ceasing Refinery operations,
operating cash flow was positive $9.8 million for the year ended
December 31, 1997. The Form 10-K will be filed on or prior to April
15, 1998.
Item 7. Exhibits.
<PAGE>
SIGNATURE
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 thereunto duly authorized.
PRIDE COMPANIES, L.P.
By: /GEORGE PERCIVAL/
George Percival
Principal Financial Officer
Date: April 13, 1998
