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 24, 1999
UStel, Inc.
(Exact name of registrant as specified in its charter)
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Minnesota
(State or Other Jurisdiction of Incorporation)
0-24098 95-4362330
(Commission File Number) (IRS Employer Identification Number)
2033 6th Avenue, Suite 401, Seattle, Washington 98121-2516 (206)505-4600
(Address, including zip code, and telephone number, including area code,
of registrant's principal executive offices)
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Item 3. Bankruptcy or Receivership
A Voluntary Petition for Bankruptcy under Chapter 11 of the United States
Bankruptcy Code was filed by UStel, Inc. (the "Company") in the United States
Bankruptcy Court, Western District of Washington on March 10, 1999.
(a) No reorganization plan has been filed to date. The Company is currently
in negotiation with various parties interested in acquiring all or
substantially all of the assets of the Company. The Company is working to
finalize the terms for the sale of all or substantially all of its assets.
Finally, the Company expects to execute a post-petition Loan and Security
Agreement with Coast Business Credit and Goldman Sachs Credit Partners that
will enable the Company to operate as a debtor in possession, leaving
existing directors and officers in possession of the operations of the
Company subject to the supervision and orders of the United States Bankruptcy
Court, for at least the next ninety (90) days.
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.
DATED: March 24, 1999 REGISTRANT
UStel, Inc.
BY: /s/ David Otto
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David M. Otto
ITS: Secretary and General Counsel
