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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
March 4, 1998
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Date of Report (Date of earliest event reported)
First Merchants Acceptance Corporation
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(Exact name of registrant as specified in its charter)
Delaware 0-24686 36-3759045
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
570 Lake Cook Road, Suite 126, Deerfield, Illinois 60015
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(Address of principal executive offices) (Zip Code)
(847) 948-9300
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(Registrant's telephone number)
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ITEM 5. OTHER EVENTS.
On March 4, 1998, First Merchants Acceptance Corporation (the
"Registrant") issued a press release, a copy of which is attached as Exhibit
99.1 to this Form 8-K and incorporated herein by reference.
ITEM 7. EXHIBITS.
Exhibit 99.1 Press release of the Registrant, dated March 4, 1998.
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST MERCHANTS ACCEPTANCE CORPORATION
/s/ Richard P. Vogelman
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Richard P. Vogelman
Dated: March 5, 1998 Vice President, General Counsel and Secretary
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EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NO. DESCRIPTION
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<S> <C>
99.1 Press release of the Registrant, dated March 4, 1998
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EXHIBIT 99.1
For Immediate Release
March 4, 1998
CHAPTER 11 PLAN OF FIRST MERCHANTS
ACCEPTANCE CORPORATION CONFIRMED
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DEERFIELD, Ill./March 4--First Merchants Acceptance Corporation ("FMAC")
announced that at a hearing held on March 3, 1998 before the United States
District Court for the District of Delaware, the Court confirmed its Second
Amended Chapter 11 Plan. The Confirmed Plan provides, among other things, for
payment of secured and administrative obligations, with expected future cash
flow from retained interests in FMAC's securitized pools to be paid to FMAC's
unsecured creditors beginning in late 1999 or early 2000. Projected ranges of
unsecured creditor recoveries are set forth in FMAC's disclosure statement.
FMAC's existing common stock will be cancelled on the Effective Date (which is
anticipated to be March 16, 1998), but such stockholders will receive the
benefit of warrants to purchase 32,500 shares of common stock in Ugly Duckling
Corporation ("UDC").
At the hearing, it was announced that the amount of the exit financing
facility from UDC would be $21.5 million, that UDC would also pay approximately
$1.3 million of transition expenses and that UDC would act as servicer for
loans in FMAC's securitized pools which were charged off as of February 28,
1998.
Safe Harbor Language
This press release contains various forward-looking statements and
information that are based on management's beliefs as well as assumptions made
by and information currently available to management, including statements
regarding future recoveries by the Company's creditors. Such statements are
subject to various risks and uncertainties which could cause actual results to
vary materially from those stated. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated, estimated, expected
or projected. Such risks and uncertainties include the performance of UDC, or
a successor servicer, in servicing and collecting the loans in the Company's
securitized pools, the amount of expenses incurred by the reorganized Company
and the future market price of UDC common stock. The Company undertakes no
obligation to update any such risk factor or to publicly announce the result of
any revisions to any of the forward-looking statements contained herein to
reflect future events or developments.
