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): April 20, 1999
DISCOVERY ZONE, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-21854 65-0408845
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
565 Taxter Road, Fifth Floor
Elmsford, New York 10523
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 914-345-4500
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INFORMATION TO BE INCLUDED IN REPORT
Item 1. Changes in Control of Registrant
Not Applicable.
Item 2. Acquisition or Disposition of Assets
Not Applicable.
Item 3. Bankruptcy or Receivership.
Discovery Zone, Inc. ("DZ") announced on April 20, 1999 that
it has filed a voluntary petition under Chapter 11 of the Bankruptcy Code. DZ
filed the petition, which also covers its domestic subsidiaries, late Tuesday in
the United States Bankruptcy Court in Wilmington, Delaware.
Discovery Zone said that is decision to seek Chapter 11
protection was due to its continuing operating losses and its inability to
obtain additional financing for working capital required in order to sustain the
business. In connection with the Chapter 11 proceeding, the Company has reached
an agreement in principle with Foothill Capital Corporation to increase the
Company's borrowing capacity under its existing $12 million credit facility to
approximately $15 million, subject to Bankruptcy Court approval.
Since February 1999, the Company has been pursuing the
possibility of a sale or strategic investment and retained Ladenburg, Thalmann &
Co. As their investment banker. The Company expects to continue to explore these
alternatives while under Chapter 11 protection.
DZ operates children's indoor entertainment centers in 38
states, Canada and Puerto Rico.
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable.
Item 5. Other Events
Not Applicable.
Item 6. Resignation of Registrant's Directors
Not Applicable.
Item 7. Financial Statements and Exhibits
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(a) Financial statements of business acquired.
Not Applicable.
(b) Pro forma financial information.
Not Applicable.
(c) Exhibits.
Not Applicable.
Item 8. Change in Fiscal Year.
Not Applicable.
Item 9. Sales of Equity Securities Pursuant to Regulation S.
Not Applicable.
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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.
DISCOVERY ZONE, INC.
By /s/ Chet Obieleski
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Name: Chet Obieleski
Title: President and Chief
Executive Officer
