UNITED STATES
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): March 25, 1998
United States Leather, Inc.
(Exact name of registrant as specified in its charter)
Wisconsin 33-64142 13-3503310
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
1403 West Bruce Street, Milwaukee, Wisconsin 53204
(Address of principal executive offices, including zip code)
(414) 383-6030
(Registrant's telephone number)
<PAGE>
Item 5. Other Events.
On March 25, 1998, United States Leather, Inc. (the "Company")
announced that it had reached an agreement in principle with its
stockholders and an informal committee of holders of the Company's
10-1/4% Senior Notes due 2003. A copy of the Company's press release
dated March 25, 1998 is included as an exhibit to this filing.
Item 7. Financial Statements and Exhibits.
(b) Exhibits.
The exhibit listed in the accompanying Exhibit Index is filed as
part of this Current Report on Form 8-K.
<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 thereunto duly authorized.
UNITED STATES LEATHER, INC.
Date: March 26, 1998 By: /s/ Kinzie L. Weimer
Kinzie L. Weimer
Senior Vice President, Chief Financial
Officer, Treasurer and Secretary
<PAGE>
UNITED STATES LEATHER, INC.
EXHIBIT INDEX TO FORM 8-K
Dated March 26, 1998
Exhibit
No. Description
(99.1) Press Release of United States Leather, Inc. dated March 25,
1998.
EXHIBIT 99.1
United States Leather Inc.
1403 West Bruce Street
Milwaukee, Wisconsin 53204
FOR IMMEDIATE RELEASE
For More Information Call
Linda Stephenson (414) 273-4680
UNITED STATES LEATHER, INC. REACHES AGREEMENT WITH MAJOR
BONDHOLDERS TO SIGNIFICANTLY DELEVERAGE ITS BALANCE SHEET
Expects Quick Approval of Restructuring Plan
MILWAUKEE, WI, (March 25, 1998)...United States Leather Inc. (USL)
announced today that it has reached an agreement in principle with its
stockholders and an informal committee of bondholders on a plan to
deleverage USL's balance sheet. Under the terms of the plan, USL's
employees and trade creditors will be paid in full and all of the
approximately $138 million of principal and accrued interest owing in
respect of the company's 10-1/4% Senior Notes due 2003 will be converted
into 97% of the equity of USL. USL's existing stockholder will retain
3% of the restructured company.
"The agreement in principle represents a major step towards achieving
the plan to delverage the company's balance sheet that was proposed to
bondholders last September," said
-more-
<PAGE>
Anthony Biancanello, President and Chief Executive Officer of USL. "Once
the restructuring is completed, USL will emerge as a stronger, more stable
company, better able to serve its customers and return to the
profitability it historically enjoyed." According to Biancanello, "the
informal committee of bondholders reports that the holders of more than
50% of the outstanding Senior Notes have already expressed support for the
proposed plan." Additionally, BankAmerica Business Credit, agent for a
syndicate of lenders, is supporting the company in its reorganization
process.
Biancanello announced that USL will commence a solicitation of its
stockholders and of its bondholders of record as of March 27, 1998 to
obtain formal approval of the plan. "Upon obtaining the requisite
approvals from the holders of the company's bonds and stock, the company
expects to file a prepackaged Chapter 11 plan to implement the
restructuring. A prepackaged bankruptcy proceeding will allow the company
to convert its bonds into equity and emerge with a clean balance sheet and
positive shareholders' equity with minimal disruption to the company's
business operations," he said. USL indicated the solicitation period is
expected to begin next week and to take approximately 45 days to complete.
It further indicated that it expects to emerge from the proceedings during
the third quarter.
USL makes and markets finished leathers for footwear, furniture and
automotive manufacturers. The company currently has 1800 employees and
manufacturing operations that include Pfister & Vogel and A.L. Gebhardt in
Milwaukee, Lackawanna Leather in Conover, NC and Omaha, NE, A.R. Clarke in
Toronto, Canada, Caldwell Moser in New Albany, IN and other operations in
Berlin, WI.
