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): February 24, 1997
GLENGATE APPAREL, INC.
(Exact name of registrant as specified in its charter)
New Jersey 33-72880 22-3266971
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(State or other juris- (Commission File Number) (I.R.S. Employer
diction of incorporation) Identification No.)
207 Sheffield Street
Mountainside, New Jersey 07092
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(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (908) 518-0006
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ITEM 1 TO ITEM 4: None.
ITEM 5: OTHER EVENTS
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On February 24, 1997, GlenGate Apparel, Inc. (the "Company"), a New Jersey
corporation, received from Milberg Factors, Inc. ("Milberg"), a lender, a notice
of termination of the Security Agreement between the Company and Milberg dated
September 26, 1996 (the "Security Agreement"). Pursuant to the Security
Agreement, Milberg could, in its discretion, make advances to the Company of up
to the lesser of $3,000,000 or 85% of qualifying receivables and provide interim
temporary financing between October 1, 1996 and April 30, 1997 of 50% of
eligible finished goods inventory to a maximum of $750,000. The Company would
pay interest on all such advances. As described in its Form 10-QSB filed with
the Securities and Exchange Commission on February 14, 1997, the Company had
previously determined that, in order to maintain its current growth patterns, it
would require additional funding in 1997 including the replacement of the
Milberg facility to be more consistent with the capital needs of the Company
during this period of intense growth. As a result, the Company had already
initiated discussions with other potential lenders regarding additional growth
capital and alternate financing arrangements prior to its receipt of the notice
of termination. The termination of the Security Agreement is effective April 30,
1997. Management believes that it will have implemented a replacement credit
facility on or before April 30, 1997.
ITEM 6 TO ITEM 8: None.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this Current Report to be signed on its
behalf by the undersigned hereunto duly authorized.
GLENGATE APPAREL, INC.
February 28, 1997 By: /s/ George J. Gatesy
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George J. Gatesy
President
