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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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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): NOVEMBER 18, 1998
Avondale Incorporated
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(Exact name of registrant as specified in its charter)
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Georgia 33-68412 58-0477150
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(State of incorporation) (Commission File Number) (IRS Employer Identification No.)
506 South Broad Street 30655
Monroe, Georgia ----------
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(Address of principal executive offices)
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Registrant's telephone number, including area code: (770) 267-2226
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
Avondale Incorporated (the "Company") announced on November 18, 1998
that in a case brought by several landowners in Tallapoosa County, Alabama, and
in which Avondale Mills, Russell Corporation, and the Alabama Power Company were
defendants, a county circuit court jury in Birmingham, Alabama handed down a
verdict late Tuesday, November 17, 1998 of $155,200 in compensatory damages and
$52,398,000 in punitive damages, on a joint and several basis, in favor of the
plaintiffs. The case alleged nuisance and trespass related to the discharge of
effluent from the waste water treatment plant of the City of Alexander City,
Alabama.
The Company believes that there are numerous grounds on which the
verdict can be appealed and that the verdict was not supported by the evidence
presented in the case. An appeal of the verdict is planned, and the Company
intends to pursue such appeal vigorously.
A copy of the press release relating to the verdict is attached hereto
as Exhibit 99.1
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
99.1 Text of Press Release of Avondale Incorporated, dated
November 18, 1998.
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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.
Date: November 18, 1998
By:/s/ Jack R. Altherr, Jr.
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Jack R. Altherr, Jr.
Vice Chairman and
Chief Financial Officer
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INDEX TO EXHIBITS
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EXHIBIT NUMBER AND DESCRIPTION PAGE
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99.1 Text of Press Release of Avondale Incorporated, dated
November 18, 1998............................................................................... 5
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EXHIBIT 99.1
NOVEMBER 18, 1998
FOR IMMEDIATE RELEASE
SYLACAUGA, AL... In a case brought by several landowners in Tallapoosa
County, Alabama, and in which Avondale Mills, Russell Corporation, and the
Alabama Power Company were defendants, a county circuit court jury in
Birmingham, Alabama handed down a verdict late yesterday of $155,200 in
compensatory damages and $52,398,000 in punitive damages, on a joint and several
basis, in favor of the plaintiffs. The case alleged nuisance and trespass
related to the discharge of effluent from the waste water treatment plant of the
City of Alexander City, Alabama.
Avondale believes that there are numerous grounds on which the verdict
can be appealed and that the verdict was not supported by the evidence presented
in the case. An appeal of the verdict is planned, and Avondale intends to pursue
such appeal vigorously.
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FOR FURTHER INFORMATION CONTACT:
Craig S. Crockard
Corporate Vice President Planning and Development
Avondale Mills, Inc.
900 Avondale Avenue
Sylacauga, AL 35150-1899
(256) 249-1340
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