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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
Date of report (date of earliest event reported): FEBRUARY 28, 2000
ASCHE TRANSPORTATION SERVICES, INC.
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(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
0-24576 36-3964954
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(Commission File Number) (IRS Employer Identification No.)
10214 NORTH MT. VERNON ROAD, SHANNON, ILLINOIS 61078
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(Address of Principal Executive Offices) (Zip Code)
(815) 864-2421
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(Registrant's Telephone Number, Including Area Code)
NONE
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On February 28, 2000, the Company disclosed that the Larry L. Asche,
Chairman and Chief Executive Officer and Diane L. Asche, Vice President and
Secretary, have been terminated for cause under their employment agreements with
the Company. Additional information regarding this disclosure is set forth in
the press release attached hereto as Exhibit 99.1.
EXHIBITS
Exhibit 99.1 Press Release dated February 28, 2000
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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.
ASCHE TRANSPORTATION SERVICES, INC.
Date: February 28, 2000 By: /s/ Leon M. Monachos
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Leon M. Monachos, Chief Financial Officer
(Signature)
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EXHIBIT 99.1
ASCHE TRANSPORTATION SERVICES, INC. TERMINATES CHIEF
EXECUTIVE OFFICER AND VICE PRESIDENT
February 28, 2000
SHANNON, Ill., Feb. 28/PRNewswire/ -- Asche Transportation Services, Inc. (the
"Company"), ASHE , announced today that Larry L. Asche, Chairman and Chief
Executive Officer and Diane L. Asche, Vice President and Secretary, have been
terminated for cause under their employment agreements with the Company. An
investigation by the Company's outside auditors at the request of the audit
committee revealed that Mr. and Mrs. Asche had allegedly misappropriated
approximately $1,000,000 from the Company over a number of years through a
combination of improper payments by the Company to parties related to them for
leased trailer maintenance expenses and other unauthorized payments and
reimbursements. The Company also announced that it has commenced litigation
against Mr. and Mrs. Asche and related parties to recover such payments.
John J. Quirk, Principal of Churchill Capital, Inc., has been appointed Chairman
of the Board.
Gary I. Goldberg has been appointed Chief Executive Officer and President of the
Company. Mr. Goldberg has been a shareholder and director of the Company for
several years and serves as President of Specialty Transportation Services, Inc.
("STS"), the Company's waste transportation subsidiary. "I look forward to
working with the employees at Asche Transfer to continue providing quality
service to our customers while at the same time improving our profit margins,"
stated Gary Goldberg. "I am also available to the investment community to
respond to their questions or comments effective immediately," added Mr.
Goldberg.
An executive committee of outside directors has been formed to assist Mr.
Goldberg in managing the business and affairs of the Company. Changes have also
been made to the audit, compensation and stock option committees of the Company.
The Company has already implemented measures at Asche Transfer to reduce costs
and improve profit margins. These measures, which are expected to result in cost
savings in excess of $1.0 million annually, include the closure of a
non-essential maintenance facility in Atlanta, Georgia, the transfer of all
maintenance to a new $2.0 million Company-owned facility in Rockford, Illinois
and the reduction of non-essential personnel.
The Company is continuing its review of accounting matters at its Asche
Transfer, Inc. subsidiary, as previously reported. Based on the preliminary
results of its review, the Company does not believe that any connection exists
between the accounting matters at Asche Transfer, Inc. and the present situation
involving Mr. and Mrs. Asche. In addition, these accounting matters do not
affect the Company's other two subsidiaries,
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AG Carriers, Inc. and STS.
The Company, through its operating subsidiaries, Asche Transfer, Inc. and AG
Carriers, Inc., is a leading provider of temperature-controlled, time-sensitive
transportation of frozen foods, juice concentrates, perishable commodities,
household and retail commodities, and tropical foliage. STS, as an operating
subsidiary of the Company, is a leading provider of municipal solid waste and
bulk industrial transport services. Its shares trade on the Nasdaq National
Market under the symbol ASHE.
Statements included in this press release which are not historical in nature,
are intended to be, and are hereby identified as, "forward looking statements"
for purposes of the safe harbor provided by Section 21E of the Securities
Exchange Act of 1934, as amended by Public Law 104-67. Forward-looking
statements may be identified by words including "anticipates," "believes,"
"intends," "estimates," "expects" and similar expressions. The Company cautions
readers that forward-looking statements, including without limitation, those
relating to the Company's future business prospects, revenues and income are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those indicated in the forward looking statements, due to
several important factors, including, among others, those identified from time
to time in the Company's reports filed with the SEC. Such risk factors include,
but are not limited to, general economic conditions, availability of drivers,
fuel costs, labor costs, interest rates, competition and governmental
regulations.
Contact: Gary I. Goldberg (219) 764-3636 or Leon M. Monachos (800) 775-3035,
ext. 153.
SOURCE: Asche Transportation Services, Inc.
