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 13, 2000
Restaurant Teams International, Inc.
(Exact name of registrant as specified in its charter)
State of Texas 001-13559 75-2337102
(State of incorporation) (Commission File No.) (IRS Employer
Identification No.)
911 N.W. Loop 281, Suite 111
Longview, Texas 75604
(Address of principal executive offices) (Zip code)
No change
(Former name of address, if changed since last report).
Item 5. Other events
On April 15, 1999 Restaurant Teams International, Inc. (`the Company") entered
into an agreement (the "Loan") with LJB Holdings (the "Lender") which Loan was
later acquired by Oxford Commercial Funding in September, 1999. The loan was
obtained by the Company for the purpose of securing an additional $500,000 down
payment and extension of closing (the "Closing") for the Fatburger transaction.
The Company had been in negotiations with the Lender to finance a portion of the
remaining amounts owed to FB Holdings in order to close on the Fatburger
corporation acquisition. The Loan provided by Lender to the Company was intended
by the Company to be rolled into more permanent financing by Lender upon the
Closing. Due to circumstances which are currently being disputed by the Company
and wherein the Company is contemplating a counter suit against the Lender, the
Lender backed out of their participation in the funding for the Closing. The
Company subsequently reduced their obligation to Lender by paying all interest,
attorney fees, and one hundred thousand dollars ($100,000) in principal through
September 28, 1999. The Lender has since declared a default of the Loan and
demanded that the Company immediately pay all amounts due under the loan
agreements or the Lender would attempt to liquidate certain shares of RTIN
common stock and additionally certain shares of Stanley L. and Carole A.
Swanson's personal RTIN holdings, to repay the obligation. The shares of stock
currently held by Lender bear a restrictive legend and cannot be sold on the
open market in the absence of an effective registration statement or an
exemption from registration. Although the Company received notice from Oxford on
March 3, 2000 of its demand for registration, the Company does not intend to
allow these shares to be sold. On December 16, 1999 the Lender filed suit in the
Northern District of Illinois against Curtis Swanson, Stanley Swanson, and
Carole Swanson, guarantors of the note seeking to enforce their rights under the
guaranty agreements, the action bears case number 99C8200. On February 22, 2000,
Oxford brought suit against the Company, also in the Northern District of
Illinois, the action bears case number 00C1048. The Company vigorously contests
the claims made by Lender in it's suit and intends to fully defend its position
and file a counter claim for failure to fulfill their commitment to fund their
committed portion of the Closing proceeds.
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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.
Restaurant Teams International, Inc.
Date: March 13, 2000 By: /s/ Stanley L. Swanson
-------------------
Stanley L. Swanson
Chief Executive Officer
(Signature)
Date: March 13, 2000 By: /s/ Curtis A. Swanson
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Curtis A. Swanson
Chief Financial Officer
(Signature)
