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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section13 or 15(d) of
the Securities Exchange Act of 1934
March 16, 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 3. BANKRUPTCY OR RECEIVERSHIP
(1)-(2) On March 16, 1998, the United States District Court for the District of
Delaware entered its order confirming the Second Amended Joint Plan (the
"Plan") under Chapter 11 of the Bankruptcy Code of First Merchants Acceptance
Corporation ("FMAC" or the "Company") and one of its subsidiaries, First
Merchants Residential Credit Corporation.
(3) A summarization of the material Features of the Plan is set forth in
Article II of the Joint Disclosure Statement relating to the Plan (the
"Disclosure Statement") under the caption "Summary of the Plan." The
Disclosure Statement and the Plan were filed as Exhibits 99.1 and 99.2 to
Amendment No. 1 to the Company's Application for Qualification of Indenture
under the Trust Indenture Act of 1939 (File No. 22-22299) and are incorporated
herein by reference.
(4) As of June 30, 1997, approximately 6,500,000 shares of common stock of
old FMAC were outstanding. As of the effective date of the Plan all of the
outstanding stock will be cancelled. Reorganized FMAC will have 10,000,000
authorized shares of common stock. 10,000,000 shares of common stock will be
issued in connection with the Plan
(5) The following condensed balance sheet (unaudited) of FMAC sets forth the
assets and liabilities of FMAC as of February 28, 1998:
<TABLE>
<S> <C>
Assets
Cash $ 647,206
Finance Receivable (Net) 50,804
Prepaid Expenses 484,563
Total Current Assets 1,182,573
Property, Plant & Equipment 11,307,625
Less: Accumulated (3,766,143)
Depreciation/Depletion
Net Property, Plant & 7,541,482
Equipment
Other 117,652,940
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Total Assets $126,376,995
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Postpetition Liabilities
Accounts Payable $ 62,772
Secured Debt 15,013,482
Other 1,530,479
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Total Postpetition Liabilities $ 16,606,733
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Prepetition Liabilities
Unsecured Debt $ 69,943,852
Other 1,471,858
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Total Prepetition Liabilities 71,415,710
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Total Liabilities $ 88,022,443
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Equity
Owner's Prepetition Equity $ 56,571,690
Postpetition Cumulative Profit (18,217,138)
Or (Loss)
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Total Equity (Deficit) 38,354,552
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Total Liabilities & Owner's $126,376,995
Equity ============
</TABLE>
In addition, Exhibit III to the Disclosure Statement sets forth a
description of the assets and liabilities of the reorganized FMAC and the
projected recoveries from FMAC's creditors, which description is incorporated
herein by reference.
ITEM 7. EXHIBITS.
Exhibit 3.1 Debtor's Joint Disclosure Statement dated February 9,
1998, and exhibits thereto.(1)
Exhibit 3.2 Debtor's Second Amended Joint Plan under Chapter 11
dated February 9, 1998 and exhibit thereto.(1)
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(1) Incorporated by reference from Amendment No. 1 to the Company's Application
for Qualificatin of Indenture under the Trust Indenture Act of 1939 (File No.
22-22299).
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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 31, 1998 Vice President, General Counsel and Secretary
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EXHIBIT INDEX
EXHIBIT
NO. DESCRIPTION
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Exhibit 3.1 Debtor's Joint Disclosure Statement dated February 9, 1998,
and exhibits thereto.(1)
Exhibit 3.2 Debtor's Second Amended Joint Plan under Chapter 11 dated
February 9, 1998 and exhibit thereto.(1)
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(1) Incorporated by reference from Amendment No. 1 to the Company's Application
for Qualification of Indenture under the Trust Indenture Act of 1939 (File No.
22-22299).
