FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 27, 1998
NIMBUS CD INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-26902 54-1651183
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
623 Welsh Run Road
Guildford Farm
Ruckersville, Virginia 22968
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (804) 985-1100
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Item 5. Other Events
Termination of MMI CD-ROM Agreement
In April 1994, Nimbus CD International, Inc. (the "Company") entered into the
Donnelley CD-ROM Agreement with R.R. Donnelley & Sons Company ("Donnelley"),
whereby the Company established a multiline compact disc manufacturing facility
in Provo, Utah, requiring capital expenditures of approximately $13 million by
the Company. In April 1995, as permitted by the Donnelley CD-ROM Agreement,
Donnelley assigned substantially all of its rights in, and obligations under,
the Donnelley CD-ROM Agreement to Stream International, Inc., formerly known as
Stream International Holdings, Inc. ("Stream") (as assigned, the "Stream CD-ROM
Agreement"). Effective April 1, 1997, the Company entered into a new agreement
with Stream that terminated the Stream CD-ROM Agreement and increased Stream's
commitment to purchase 27.5 million discs during fiscal 1998 and 20.6 million
discs for the first nine months of fiscal 1999. The agreement was scheduled to
terminate December 31, 1998, and was originally subject to reductions based upon
changes in the cost of manufacturing for CD-ROM discs.
In December 1997, as permitted by the Stream CD-ROM Agreement, Stream assigned
substantially all of its rights in, and obligations under, the Stream CD-ROM
Agreement to Modus Media International, Inc. ("MMI") (as assigned, the "MMI
CD-ROM Agreement"). Since that time, the Company and MMI have determined that,
in furtherance of their mutual best interests, they would terminate the MMI
CD-ROM Agreement effective March 31, 1998, and would enter into a mutual release
of any and all claims arising from the Agreement, the business relationship
between the Company and MMI, or both.
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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 thereunto duly authorized.
NIMBUS CD INTERNATIONAL, INC.
(registrant)
By: /s/ L. Steven Minkel
(Signature)
L. Steven Minkel,
Executive Vice President and
Chief Financial Officer
Dated: April 27, 1998
