SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
AMENDMENT NO. 1
For Quarter Ended Commission File No.
December 31, 1996 33-67422
SABRELINER CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 43-1289921
(State of Incorporation) (I.R.S. Employer
Identification No.)
Pierre Laclede Center
Suite 1500
7733 Forsyth Blvd.
St. Louis Missouri 63105-1821
(314) 863-6880
(Name, address, including ZIP Code, and telephone number,
including area code, of registrant's principal executive offices)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such report(s), and (2) has been subject to such filing
requirements for the past 90 days. YES [ X ] NO [ ]
The number of shares of the Company's common stock outstanding on
January 31, 1997 was 870,834.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
On May 11, 1996, ValuJet Flight 592 from Miami, carrying 110
passengers and crew crashed into the Florida Everglades.
Prior to take-off, employees of SabreTech's Miami facility
returned to ValuJet various company materials, including
five boxes containing oxygen generators, which, after
consultation with ValuJet's flight crew, were loaded into
the cargo bay of Flight 592 by ValuJet employees. Although
the cause of the crash has not been officially determined by
the National Transportation Safety Board (NTSB), SabreTech's
actions associated with Flight 592 have been included in the
NTSB investigation. The Federal Aviation Administration
(FAA) is also conducting an investigation into the
circumstances surrounding the ValuJet crash and has sought
information from SabreTech and various of its employees and
contract workers in connection therewith. In addition,
SabreTech is one of several subjects of an investigation
being conducted by a federal grand jury in conjunction with
the United States Attorney for the Southern District of
Florida. The Company has cooperated fully throughout these
investigations and is continuing to do so. Public hearings
concerning the crash of Flight 592 were held in November,
1996.
SabreTech, ValuJet and others have been named as defendants
in numerous wrongful death actions that have been filed by
families of victims. Additional wrongful death actions are
expected to be filed, naming SabreTech, ValuJet and others.
The Company's legal costs of defending against these civil
actions and any possible claim settlements are funded by the
Company's insurance policies. Management believes coverage
is adequate to provide for such legal actions.
The Company has recognized the costs associated with this
incident, such as media relations, incremental professional
services, legal fees not covered by insurance, increased
insurance premiums and other costs related to the various
investigations and other lawsuits of approximately $5.6
million; of which $3.8 million were recorded during the
second quarter of fiscal 1997. In January of fiscal 1997
the Company sold certain assets associated with the Miami
facility and exited its operations there. Remaining assets
were relocated to other operational units within the
Company. Shutdown costs of the facility, including
provision for continuing ValuJet related expenses of $2.5
million were recognized in December. The ultimate outcome of
the legal actions related to the ValuJet Flight 592 crash
and the length of time necessary to resolve all outstanding
issues cannot be determined at this time; the Company does
not know whether the continuing effects of the
investigations and related lawsuits will have a material
adverse effect upon the future results of operations or
financial condition of the Company.
The Company has been subject to government inquiry regarding
an alleged environmental incident that may have occurred at
the Perryville facility prior to the flooding of the
facility in July, 1993. Supplemental requests for documents
concerning this matter were received during fiscal 1996.
The Company has complied with all requests for documents.
No other significant actions or developments have occurred
during fiscal 1997.
In addition to the litigation discussed above, the Company
is subject to other legal proceedings and claims arising in
the ordinary course of its business. Although there can be
no assurance as to the outcome of litigation, it is the
opinion of management (based upon the advice of legal
counsel) that all such actions or proceedings are covered by
insurance or will be resolved without material effect on the
Company's financial position or results of operations.
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.
SABRELINER CORPORATION
/s/ Rodney E. Olson
Date: February 28, 1997 Rodney E. Olson
Senior Vice President, Finance
and Corporate Development
and Chief Financial Officer
