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) July 14, 1997
HOME HOLDINGS INC.
(Exact name of registrant as specified in its charter)
Delaware 0-19347 13-3584978
(State of Incorporation) (Commission file (I.R.S. Employer
number) Identification No.)
59 Maiden Lane, New York, New York 10038-4548
(Address or principal executive office) (Zip Code)
Registrant's telephone number including area code (212) 530-6600
Item 5. Other Events
The Registrant announced yesterday that on July 14 the
New Hampshire Insurance Commissioner (the "Commissioner")
approved a dividend payment to the Registrant by The Home
Insurance Company, a New Hampshire-domiciled property and
casualty stock insurance company and the principal,
wholly-owned subsidiary of the Registrant ("Home
Insurance"), in the amount of $11,637,500 (plus 29 days'
interest). The Board of Directors of Home Insurance had
previously declared the dividend, subject to the
Commissioner's approval. Under the terms of an Order of
Supervision issued by the Commissioner on March 3, 1997
and a Consent Order issued by the Commissioner on June 9,
1995, Home Insurance may not make any single non-claims
payment in excess of $500,000, nor pay any dividend,
respectively, without the prior approval of the
Commissioner.
Home Insurance's Board declared the dividend for the
purpose of funding the payment of interest by the
Registrant on its 7-7/8% Senior Notes due December 15,
2003, 7-7/8% Senior Sinking Fund Notes due December 15,
2003 and 7% Senior Notes due December 15, 1998
(collectively, the "Notes") to prevent the occurrence of
an "Event of Default" under the Notes.
The declaration and payment of the dividend by Home
Insurance to the Registrant is surplus-neutral to Home
Insurance because Home Insurance's aggregate maximum
reinsurance coverage under the Aggregate Excess of Loss
Reinsurance Agreement between Home Insurance and Centre
Reinsurance Dublin (an affiliate of the Zurich Insurance
Group) is increased by an amount equal to any dividend
paid by Home Insurance prior to June 12, 1998 for the
purpose of funding an interest payment on the Notes by
the Registrant, plus any interest that Home Insurance
would have otherwise earned on the funds used to pay such
dividend. As a result, the dividend payment will neither
increase nor decrease Home Insurance's statutory surplus,
which at March 31 was approximately $30 million after the
discounting of loss reserves.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits
(c) Exhibits.
(99.1) Press release issued on July 15,
1997.
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.
HOME HOLDINGS INC.
Dated: July 16, 1997 By: /s/ Richard H. Hershman
_________________________
Richard H. Hershman
(Principal Financial and
Accounting Officer through the
Services Agreement, dated June
12, 1995, between Risk
Enterprise Management Limited, a
Delaware corporation, and Home
Insurance)
EXHIBIT 99.1
FROM: EDWARD G. NOVOTNY & ASSOCIATES, INC.
TWO TUDOR CITY PLACE
NEW YORK, NY 10017
TEL.: 212-490-2065
FOR: HOME HOLDINGS INC. FOR IMMEDIATE RELEASE
59 MAIDEN LANE TUESDAY, JULY 15, 1997
NEW YORK, NY 10038
CONTACT: RICHARD H. HERSHMAN,
TREASURER
TEL.: 212-530-6060
HOME HOLDINGS BONDHOLDERS
TO RECEIVE INTEREST PAYMENT;
HOME INSURANCE RECEIVES APPROVAL
FOR SURPLUS-NEUTRAL DIVIDEND
NEW YORK Home Holdings Inc. announced today that the
Board of Directors of its subsidiary, The Home Insurance
Company, has declared and the New Hampshire Insurance
Commissioner (Home Insurance's principal regulator) has
approved a surplus-neutral dividend payment to Home
Holdings in the amount of $11,637,500 (plus a month's
interest). Under the terms of an Order of Supervision
issued by the Commissioner on March 3, 1997 and a Consent
Order issued by the Commissioner on June 9, 1995, Home
Insurance may not make any single non-claims payment in
excess of $500,000, nor pay any dividend, respectively,
without the prior approval of the Commissioner.
Home Insurance's Board declared the dividend for the
purpose of funding the payment of interest by Home
Holdings on its 7-7/8% Senior Notes due December 15,
2003, 7-7/8% Senior Sinking Fund Notes due December 15,
2003 and 7% Senior Notes due December 15, 1998
(collectively, the "Notes") to prevent the occurrence of
an "Event of Default" under the Notes.
The declaration and payment of the dividend by Home
Insurance to Home Holdings is surplus-neutral to Home
Insurance because Home Insurance's aggregate maximum
reinsurance coverage under the Aggregate Excess of Loss
Reinsurance Agreement between Home Insurance and Centre
Reinsurance Dublin (an affiliate of the Zurich Insurance
Group) is increased by an amount equal to any dividend
paid by Home Insurance prior to June 12, 1998, plus any
interest that Home Insurance would have otherwise earned
on the funds used to pay such dividend. As a result, the
dividend payment will neither increase nor decrease Home
Insurance's statutory surplus, which at March 31 was
approximately $30 million after the discounting of loss
reserves.
