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): September 18, 1996
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PUDGIE'S CHICKEN, INC.
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(Exact name of registrant as specified in its charter)
Delaware 31-1369735
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(State or other jurisdic- (I.R.S. Employer
tion of incorporation or Identification No.)
organization)
1-13840
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(Commission File Number)
333 Earle Ovington Blvd., Suite 604, Uniondale, NY 11553
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (516) 222-8833
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<PAGE>
Item 3. Bankruptcy or Receivership
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Because of the unanticipated amount of the adverse arbitration award
described in Item 5 below, and in order to protect its assets, on September 18,
1996, Pudgie's Chicken, Inc. (the "Company") filed a Voluntary Petition under
Chapter 11 of the Bankruptcy Code in the White Plains division of the United
States Bankruptcy Court for the Southern District of New York.
Item 5. Other Events
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On September 12, 1996, a panel of the American Arbitration Association
rendered an award against the Company in favor of Gallus Investments, L.P., a
former area developer of the Company's franchises. In rendering the award, the
arbitrators determined that the Company had violated the Franchise Sales Act of
the State of New York. The award was in the amount of $1,375,888 in damages and
$331,516 in attorney fees. A motion to confirm this award in the United States
District Court for the Eastern District of Virginia has been stayed by operation
of Section 362(a) of the Bankruptcy Code. The Company intends to object to this
claim in bankruptcy and to explore other available remedies.
Item 8. Exhibits
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20 Press Release dated September 18, 1996
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<PAGE>
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 thereunto duly authorized.
Date: September 18, 1996
PUDGIE'S CHICKEN, INC.
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(Registrant)
By: /s/ Steven Wasserman
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Name: Steven Wasserman
Title: President
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<PAGE>
EXHIBIT INDEX
Exhibit Page
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20 Press Release dated September 18, 1996
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Exhibit 20
NEWS BULLETIN RE: Pudgie's Chicken, Inc.
333 Earle Ovington Blvd.
FROM Suite 604
FRB Uniondale, NY 11553
Nasdaq: PUDG
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The Financial Relations Board, Inc.
FOR FURTHER INFORMATION
At The Company At The Financial Relations Board
Robert Rattet Joe Calabrese & Kerry Thalheim
914-381-7400 212 661-8030
FOR IMMEDIATE RELEASE
September xx, 1996
Uniondale, NY (September xx, 1996) - Pudgie's Chicken, Inc. (Nasdaq: PUDG)
announced today that a panel of the American Arbitration Association has
rendered an award against the Company in favor of Gallus Investments, L.P.
an area developer, in the amount of $1,375,888 in damages and $331,516 in
attorney fees. A motion to confirm this award is to be held in the United
States District Court for the Eastern District of Virginia on September 27,
1996. Pudgie's intends to oppose this motion and to explore other
available post-arbitration remedies. In the interim, in order to protect
their interest and assets, Pudgie's has filed a Chapter 11 Petition for
Reorganization in view of the unanticipated size of the award.
"The award was totally unexpected given that our Company was not found to
have committed any fraud or breach of contract. Instead, the Company was
found to have violated the Franchise Sales Act of the State of New York,"
stated Steven Wasserman, President and Chief Executive Officer of Pudgie's.
Pudgie's Chicken operates and franchises quick service Pudgie's Famous
Chicken restaurants.
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