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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of Earliest Event Reported): January 12, 2001
DANKA BUSINESS SYSTEMS PLC
(Exact name of registrant as specified in its charter)
UNITED KINGDOM 0-20828 98-0052869
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
11201 DANKA CIRCLE NORTH
ST. PETERSBURG, FLORIDA 33716
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: 727-576-6003
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ITEM 5. OTHER EVENTS.
As of December 15, 2000, Danka Business Systems PLC (the "Company")
entered into the Tenth Amendment to Credit Agreement (the "Tenth Amendment")
amending its multicurrency credit agreement (the "Credit Agreement") with a
consortium of international banks. On or about December 28, 2000, the conditions
for effectiveness contained in the Tenth Amendment were met and amended the
Credit Agreement, effective December 15, 2000.
The Credit Agreement has been amended to require minimum levels of
adjusted consolidated net worth, cumulative consolidated EBITDA, a ratio of
consolidated EBITDA to interest expense, and a consolidated fixed charge
coverage ratio and a consolidated total leverage ratio (each as defined within
the Credit Agreement). The Tenth Amendment continues through March 28, 2001 the
waiver of compliance with the requirements of certain other covenants that were
waived in waivers granted to the Company by the bank lenders in October 1998 and
February 1999. See the Company's Current Report on Form 8-K dated February 26,
1999 for a description of the Credit Agreement and the prior waivers.
Terms of the Tenth Amendment allow for the Company to receive advances
under the Credit Agreement for its ordinary operational needs during the period
ending March 28, 2001. The Company was also permitted to make the $25,000,000
term loan payment in advance of the required repayment date of January 2, 2001.
In addition, the Company is permitted to make payments to certain lenders (the
"TROL Lenders") upon the sale of real properties subject to a mortgage held by
the TROL Lenders using the net sale proceeds. The Company paid a fee of $1.5
million related to the execution of the Tenth Amendment.
A copy of the Tenth Amendment is included with this Form 8-K Current
Report, as Exhibit 4.25 hereto and any description or summary set forth in this
Report is qualified in its entirety by reference to that exhibit.
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ITEM 7. EXHIBITS.
EXHIBIT
NUMBER EXHIBIT
4.25 Tenth Amendment to Credit Agreement dated December 15, 2000
among Danka Business Systems PLC, Dankalux Sarl & Co., SCA and
Danka Holding Company, Bank of America, N.A., each other Bank
signatory to the Credit Agreement and Bank of America, N.A.,
as agent.
99.1 Press Release dated January 3, 2001 by Danka Business Systems
PLC announcing amendment to Credit Agreement and loan
repayment.
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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 hereunto duly authorized.
DANKA BUSINESS SYSTEMS PLC
By: /s/ Keith Nelsen
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Keith Nelsen
Its: Senior Vice President and General Counsel
Dated: January 12, 2001
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