SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) June 10, 1998
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Conversion Technologies International, Inc.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
Delaware 000-28198 13-3754366
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(STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (IRS EMPLOYER
OF INCORPORATION) IDENTIFICATION NO.)
2180 Park Avenue North
Suite 110
Winter Park, Florida 32789
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code (407) 207-5900
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(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
On June 10, 1998, Conversion Technologies International, Inc. (the
"Company") and Ernst & Young LLP, the Company's independent auditors, mutually
agreed to terminate their relationship. In connection with its audits for each
of the two years in the period ended June 30, 1997 and in the subsequent interim
periods, there were no disagreements with Ernst & Young on any matters of
accounting principles or practices, financial statement disclosure, or auditing
scope or procedures which, if not resolved to the satisfaction of Ernst & Young
LLP, would have caused Ernst & Young LLP to make reference to the matter in
their report. Ernst & Young's report on the Company's financial statements for
each of the two years in the period ended June 30, 1997 contained no adverse
opinion or disclaimer of opinion and was not modified or qualified as to
uncertainty, audit scope, or accounting principles, except that Ernst & Young's
report on the Company's consolidated financial statements for the fiscal year
ended June 30, 1997 included an explanatory paragraph that the Company had
generated only minimal revenue, incurred significant losses and had a working
capital deficiency and stockholders' deficiency, which conditions raised
substantial doubt about the Company's ability to continue as a going concern.
Such report also stated that the financial statements did not include any
adjustments to reflect the possible future effects on the recoverability and
classification of assets or the amounts and classification of liabilities that
may result from the possible inability of the Company to continue as a going
concern.
The decision to change accountants was approved by the Audit Committee of
the Board of Directors of the Company. The Company has requested Ernst & Young
to furnish it with a letter addressed to the Securities and Exchange Commission
stating whether it agrees with the above statements. A copy of that letter,
dated June 16, 1998 is filed as Exhibit 16 to this Form 8-K.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) FINANCIAL INFORMATION OF BUSINESSES ACQUIRED.
Not applicable.
(b) PRO FORMA FINANCIAL INFORMATION.
Not applicable.
(c) EXHIBITS.
Exhibit No.
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Description of Exhibit
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16 Letter re: Change in Certifying Accountants.
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SIGNATURE
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.
CONVERSION TECHNOLOGIES
INTERNATIONAL, INC.
By:/s/William L. Amt
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William L. Amt
President and Chief Executive Officer
June 16, 1998
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EXHIBIT INDEX
EXHIBIT NO. DOCUMENT PAGE NO.
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16 Letter re: Change in Certifying Accountants 4
EXHIBIT 16
Ernst & Young LLP
202 Carnegie Center
Princeton, New Jersey 08543
June 16, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Ladies and Gentlemen:
We have read Item 4 of the Form 8-K dated June 16, 1998 of Conversion
Technologies International, Inc. and are in agreement with the statements
contained in paragraph 1 on page 2. We have no basis to agree or disagree with
the other statements of the registrant contained therein.
Very truly yours,
ERNST & YOUNG LLP
By: /s/Keith L. Brownlie
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Keith L. Brownlie
Partner
