UNITED STATES
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): January 17, 2001
PRIDE COMPANIES, L.P.
(Exact name of registrant as specified in its charter)
Delaware 001-10473 75-2313597
(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or
organization)
1209 North Fourth Street
Abilene, Texas 79601
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (915) 677-5444
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Item 3. Bankruptcy or Receivership.
On January 17, 2001, Pride Companies, L.P. (the "Partnership")
filed a voluntary petition for reorganization under Chapter 11 of the
United States Bankruptcy Code in the Northern District of Texas,
Abilene Division. Subject to the approval of the Bankruptcy Court,
the Partnership will operate as a debtor-in-possession, which will
enable the Partnership to continue operations during the
reorganization proceeding.
On January 18, 2001, the Partnership issued a press release in
respect of the foregoing. A copy of the press release is attached
hereto as an exhibit and incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 Press Release dated January 18, 2001.
<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: Pride Refining, Inc.,
Managing General Partner
By: /s/ Brad Stephens
Brad Stephens
Chief Executive Officer
Date: January 18, 2001
<PAGE>
Exhibit 99.1 to Form 8-K
FOR IMMEDIATE RELEASE 1/18/01
PRIDE COMPANIES, L.P. ANNOUNCES
CHAPTER 11 BANKRUPTCY FILING
ABILENE, TEXAS, January 18, 2001 -- Pride Refining, Inc., the
managing general partner of Pride Companies, L.P. (OTC: PRDE), reported
that Pride Companies, L.P. (the "Partnership) filed a Chapter 11
petition on January 17 in the United States Bankruptcy Court of the
Northern District of Texas, Abilene Division, seeking relief from, among
other things, a claim filed in New York state court by Varde Partners,
Inc. ("Varde") for a $17.5 million "transaction fee." Varde is a
Minnesota "investment fund that generally invests in non-investment-
grade securities." Varde acquired the Partnership's debt from
Nationsbank in December 1997.
It is the Partnership's position that it does not owe the $17.5
million claimed by Varde, and the Partnership believes that the claim is
not authorized by the credit agreements between the parties.
The Partnership will immediately request Bankruptcy Court approval
to pay its necessary on-going suppliers and trade creditors their pre-
petition claims. Further, it is anticipated that the Partnership will
continue under its current management both during the pendency of the
reorganization and following its completion.
The Partnership intends that its customers, suppliers, and trade
partners will not see any change in its operations. It is anticipated
that business will be conducted during normal hours at all existing
locations with no employee layoffs planned.
The Partnership's goal is to emerge from the proceeding as a
stronger, healthier company ready to grow with the area.
Statements regarding the Partnership's ability to complete its
reorganization or its ability to sustain current operations during the
pendency of the reorganization, including its ability to maintain its
relationships with customers, suppliers and creditors, and other
statements that are not historical facts contained in this release are
forward-looking statements that involve certain risks, uncertainties and
assumptions. These include, but are not limited to, the results of
bankruptcy proceedings, the Partnership's litigation with Varde, other
court decisions and actions, the negotiating positions of various
constituencies, the results of negotiations, as well as market and other
factors detailed in the Partnership's Securities and Exchange Commission
filings. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual
outcomes may vary materially from those indicated.
The Partnership, headquartered in Abilene, Texas, is a Delaware
limited partnership and it owns and operates a common carrier products
pipeline system and three products terminals in Abilene, Texas, San
Angelo, Texas and Aledo, Texas, which are used to market conventional
gasoline, low sulfur diesel fuel, and military aviation fuel.
Safe Harbor Statement: Certain information included in this release
contains forward-looking statements made pursuant to the Private
Securities Litigation Reform Act of 1995 ("Reform Act"). Such
statements are based on current expectations and involve a number of
known and unknown risks and uncertainties that could cause the actual
results and performance of the Partnership to differ materially from any
expected future results or performance, expressed or implied, by the
forward-looking statements. In connection with the safe harbor
provisions of the Reform Act, the Partnership has identified important
factors that could cause actual results to differ materially from such
expectations, including operating uncertainty, acquisition uncertainty,
uncertainties relating to geothermal resources, uncertainties relating
to domestic and international economic and political conditions and
uncertainties regarding the impact of regulations, changes in government
policy and competition. Reference is made to all of the Partnership's
SEC filings, including the Partnership's 10-K for the year ended
December 31, 1999 and its 10-Q for the quarter ending September 30,
2000, which is incorporated herein by reference, for a description of
such factors. The Partnership assumes no responsibility to update
forward-looking information contained herein.
