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): May 21, 1998
ALLIANCE ENTERTAINMENT CORP.
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(Exact name of registrant as specified in its charter)
Delaware 1-13054 13-3645913
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(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of incorporation) Identification No.)
4250 Coral Ridge Drive, Coral Springs, Florida 33065
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (954) 346-0110
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Item 5. Other Events
On May 21, 1998, Alliance Entertainment Corp. (the "Company") issued a
press release announcing that it had filed its Disclosure Statement and Plan of
Reorganization with the Bankruptcy Court in the Southern District of New York.
The Company stated that, following a hearing expected to occur in late June on
the adequacy of the Disclosure Statement, the Company will commence soliciting
votes for approval of its Plan of Reorganization.
Certain matters discussed in the press release are forward-looking
statements intended to qualify for the safe harbors from liability established
by the Private Securities Litigation Reform Act of 1995. These forward-looking
statements can generally be identified as such because the context of the
statement will include words such as the Company "believes," "expects" or words
of similar import. Similarly, statements that describe the Company's future
plans, objectives, estimates or goals are also forward-looking statements. Such
statements address future events and conditions concerning capital expenditures,
earnings, sales, liquidity and capital resources, and accounting matters. Actual
results in each case could differ materially from those currently anticipated in
such statements, by reason of factors such as future economic conditions,
including changes in customer demand, legislative, regulatory and competitive
developments in markets in which the Company operates; and other circumstances
affecting anticipated revenues and costs.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99.1 Press Release dated May 21, 1998.
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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.
ALLIANCE ENTERTAINMENT CORP.
By:/s/ Eric Weisman
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Name: Eric Weisman
Title:President and
Chief Executive Officer
Date: May 22, 1998
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EXHIBIT INDEX
Exhibit 99.1 Press Release dated May 21, 1998.
News Release
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Sitrick and Company Inc.
Los Angeles/New York
Contact: Sandra Sternberg
Brenda Adrian
Sitrick and Company
310-788-2850
For Immediate Release
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Alliance Entertainment Corp. Files Disclosure Statement and Plan of
Reorganization with Bankruptcy Court
New York - May 21, 1998 - Less than a year after filing Chapter 11,
Alliance Entertainment Corp. (OTC: AETTQ) announced that is has filed its
Disclosure Statement and Plan of Reorganization with the Bankruptcy Court in the
Southern District of New York. Following a hearing expected to occur in late
June on the adequacy of the Disclosure Statement, Alliance will commence the
solicitation of votes for approval of its Plan of Reorganization.
"The Company has worked very hard over the last 10 months to bring this
process to a timely and successful conclusion. We have made the hard decisions
and taken the necessary steps to consolidate our operations and return the
Company to profitability. We have met the operating goals set forth in our
long-range business plan and expect to continue to do so. We have positioned the
Company to take advantage of the current rebound in the conventional retail
music market, and the growth of new emerging channels of distribution, most
significantly the Internet. We are confident that with creditor approval and
confirmation of the plan, we will emerge from Chapter 11 by the end of the
summer a smaller, but considerably stronger operation with a bright, new
future," said Eric Weisman, Alliance's president and chief executive officer.
The newly reorganized Alliance Entertainment will become a private
corporation, with nearly all equity in the Company to be held by a syndicate of
banks led by The Chase Manhattan Bank, as agent. Under the terms of the Plan,
The Company's existing common stock will be canceled and shareholders in the Old
Alliance Entertainment will receive no distribution, either in cash or common
stock in the new Company.
Alliance Entertainment Corp. is the largest wholesaler of prerecorded music
and related products. Alliance Entertainment Corp. and certain of its
subsidiaries voluntarily filed to reorganize under Chapter 11 on July 14, 1997.
The Company currently employs approximately 800 people in the United States and
Canada and maintains headquarters in Coral Springs, Fla.
Forward-looking statements herein are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements can generally be identified as such because the
context of the statement will include words such as the Company "believes,"
"expects," "anticipates," or words of similar import. Similarly, statements that
describe the Company's future plans, objectives, estimates or goals are
forward-looking statements. There are certain important factors that could cause
results to differ materially from those anticipated by forward-looking
statements made herein. Investors are cautioned that all forward-looking
statements involve risks and uncertainty.
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