<PAGE>
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report : November 6, 1996
COMMISSION FILE NUMBER 1-13068
IRATA, INC.
(Name of registrant)
<TABLE>
<CAPTION>
<S> <C>
TEXAS 76-0366015
(State of incorporation) (IRS Employer
Identification No.)
8554 KATY FREEWAY, SUITE 100, HOUSTON, TEXAS 77024
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 467-4300
</TABLE>
Page 1 of 5
Exhibit 99 is on page 4
<PAGE>
ITEM 5. OTHER EVENTS
Exhibits
99 Press Release of Irata, Inc. dated November 6, 1996 (filed herewith)
Page 2 of 5
<PAGE>
SIGNATURES
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.
IRATA, INC.
(Registrant)
Date: November 6, 1996 /s/ Lance P. Wimmer
-------------------
Lance P. Wimmer
President and Chief Executive Officer
Page 3 of 5
<PAGE>
Exhibit 99 to Form 8-K
FOR IMMEDIATE RELEASE
- ---------------------
Company Contact: Lance P. Wimmer
Chairman, President, CEO
IRATA, Inc.
(713) 467-4300
IRATA COMPLETES NEW EQUITY FINANCING AND DEBT RESTRUCTURE; WIMMER NAMED
- -----------------------------------------------------------------------
CHAIRMAN, CEO
- -------------
Houston, TX, November 6, 1996....Irata, Inc. today announced the initial closing
last Friday, November 1, 1996 on $1.2 million of a $1.5 million private equity
security placement. The private placement consists of units of one share of
common stock at $0.50 per share plus one warrant at $1.00 and the $1.2 million
closing results in approximately 5,488,000 shares outstanding.
Concurrent with the equity financing, Irata announced a comprehensive
restructuring of all senior and subordinated debt. The company entered into a
$2.1 million loan restructuring agreement with its senior lender, bringing the
company into compliance with new loan covenants and eliminating all loan
defaults. Irata also entered into restructuring agreements with its trade and
service creditors agreeing to exchange combined payables of $725,000 for two-
thirds common stock and one-third cash spread over 15 months.
In conjunction with the financing and restructuring, Irata announced a re-
organization of management and the Board of Directors. Lance P. Wimmer accepted
the positions of Chairman, President and Chief Executive Officer. Mr. Wimmer's
firm, Wimmer Associates, Inc., has been an advisor to Irata on the comprehensive
restructuring and reinvigoration of its business plan since April 1996. Mr.
Wimmer, former President and COO of Swift Independent Corp., a $4.5 billion food
and distribution company, has over 30 years of operations and executive
management experience in manufacturing and consumer products companies such as
Curtis Mathes and Lenox, Inc. The past eight years of Mr. Wimmer's career have
focused on turnarounds of under-performing companies through improvements in
operations and financing. Mr. Wimmer also presently serves as President of the
Dallas chapter of the Turnaround Management Association.
Robert A. Searles, Jr., former President and CEO remains with the company as
Executive Vice President and will continue as a Director.
John C. Stuecheli was named Vice President and Chief Financial Officer. Mr.
Stuecheli is affiliated with Wimmer Associates, Inc. and has been assisting Mr.
Wimmer with the Irata restructuring since April 1996. Mr. Stuecheli, a CPA,
brings over 25 years of financial management experience. The past eight years
of Mr. Stuecheli's career have focused on turnarounds. Earlier Mr. Stuecheli
was director of financial planning and acquisitions for Interlogic Trace, Inc. a
computer service company. Previously he held financial positions during his
nine year tenure with Nordson Corporation, a multinational special equipment
manufacturer.
Page 4 of 5
<PAGE>
Mr. Robert Salyard, a founder and long time Irata investor, has also joined the
Irata Board of Directors. Mr. Salyard has had over 30 years of operations and
corporate experience culminating in senior level executive positions and has
been a board member or advisor to over 15 companies during the past 10 years.
Mr. Wimmer said, "Irata has achieved many important milestones in its turnaround
and initial recovery. The company is beginning to show signs of stabilizing its
financial performance. The fundamentals are in place to set the stage for the
implementation of an improved business strategy for renewed and profitable
growth."
Irata, Inc. manufactures and operates consumer interactive self-service photo
booths under the trade name VideoFoto. As of fiscal year end June 30, 1996 the
company had 738 booths in operation in shopping malls, theme parks, discount
stores and a variety of other amusement locations nationally.
Page 5 of 5
