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 9, 1999
Sears Credit Account Master Trust II
(Exact name of registrant as specified in charter)
Illinois 0-24776 Not Applicable
(State or Other (Commission File (IRS Employer
Jurisdiction of Number) Identification No.)
Incorporation)
c/o SRFG, Inc., 3711 Kennett Pike, Greenville, DE 19807
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302) 888-3176
Item 5. Other Events.
On February 9, 1999, Sears, Roebuck and Co. ("Sears") issued
the press release attached hereto as Exhibit 99. As reported in
the press release, Sears Bankruptcy Recovery Management Services,
Inc. ("SBRMS"), a Sears subsidiary, has agreed to plead guilty to
one count of bankruptcy fraud and accept a fine of $60 million.
Certain of the statements contained in the attached press
release are forward looking and as such involve risks and
uncertainties that could cause actual results to differ materially.
The forward-looking statements are based on assumptions about many
important factors, including the Court's approval of the agreement
between SBRMS and the U.S. Attorney. While the registrant believes
that the assumptions are reasonable, it cautions that it is
impossible to predict the impact of certain factors that could
cause actual results to differ materially from predicted results.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
The Exhibit Index on page E-1 is incorporated herein by
reference.
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.
Sears Credit Account Master Trust II
(Registrant)
By: SRFG, Inc.
(Originator of the Trust)
Date: February 9, 1999 By: /s/ Donald J. Woytek
DONALD J. WOYTEK
Vice President, Administration
EXHIBITS
99. Sears, Roebuck and Co. press release dated February 9, 1999.
E-1
EXHIBIT 99
Sears News Release
CONTACT:
Sears Public Affairs
(847) 286-8371
FOR IMMEDIATE RELEASE
Sears Subsidiary to Accept Charge, Fine in Debt Reaffirmation
Action
HOFFMAN ESTATES, Ill., Feb. 9 /PRNewswire/ -- Sears Bankruptcy
Recovery Management Services, Inc., a subsidiary of Sears, Roebuck
and Co., has agreed to plead guilty to one count of bankruptcy
fraud and accept a fine of $60 million.
The agreement between Sears Bankruptcy Recovery Management
Services, Inc. and the U.S. Attorney is subject to court approval.
A hearing date has not yet been set.
The anticipated fine will have no effect on Sears earnings.
In the second quarter of 1997, Sears took a pre-tax charge of $475
million against earnings for refunds, penalties and administrative
expenses stemming from improper handling of certain debt
reaffirmation agreements. Likewise, the agreement does not
require any change in the day-to-day operations of Sears or the
subsidiary.
Separately, Sears reached agreement with the U.S. Attorney to
settle a civil action dating from April 17, 1997. Under terms of
that agreement, which also is subject to court approval, Sears and
its subsidiary will continue to file all reaffirmation agreements
obtained in Chapter 7 bankruptcies as required by the U.S.
Bankruptcy Code.
The resolution of the United States Attorney's investigation
will conclude the last in a series of legal actions surrounding
Sears failure to file some reaffirmation agreements which the
company reached with Chapter 7 bankruptcy debtors. Under the
reaffirmation provisions of the U.S. Bankruptcy Code, a
debtor seeking Chapter 7 protection may agree to repay his or her
debts to creditors. This reaffirmation agreement must be filed
with the court to be valid.
In late March 1997, upon learning that the company had not
consistently filed debtors' reaffirmation agreements with the
appropriate courts, Sears senior management immediately directed
that all reaffirmation agreements must be filed in a timely
fashion. On April 10, Sears announced a plan to voluntarily
identify and repay with interest Chapter 7 debtors whose
reaffirmations were not filed as required from January 1, 1992
through April 1, 1997. Through Sears efforts, more than 187,000
affected debtors were identified and repaid, with interest, all
principal, finance charges and fees they had paid to Sears under
terms of invalid reaffirmation agreements.
On June 5, 1997, Sears announced comprehensive settlements
that led to court-approved agreements with all 50 state Attorneys
General and class action plaintiffs, as well as an approved
consent order with the Federal Trade Commission.
Sears, Roebuck and Co. (NYSE: S) is a leading U.S. retailer of
apparel, home and automotive products and services, serving
American households nationwide.
SOURCE Sears, Roebuck and Co.
