UNITED STATES 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) October 10, 1996
SYSTEMS COMMUNICATIONS, INC.
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(Exact name of Registrant as specified in its charter)
FLORIDA 000-26668 65-0036344
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(State or other jurisdiction (Commission (I.R.S Employer
of incorporation or organization) file Number) Identification No.)
2575 ULMERTON ROAD, SUITE 300, CLEARWATER, FLORIDA 34622
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(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code (813)571-1185
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SYSTEMS COMMUNICATIONS, INC.
ITEM 5. OTHER EVENTS
On October 10, 1996, the Company was notified of a decision
and award in the arbitration of the Company's claim against
GE Capital Communication Services Corp. ("GECCS") and
New Enterprise Wholesale Services, Ltd ("NEWS") for compensatory
damages in the amount of $1,253,364.00 payable jointly and separately
by "GECCS" and "NEWS" within 15 days from the date of the award.
As of the date of this report, the Company has not received the
payment from "GECCS"/"NEWS". After the payment of legal fees and
other costs associated with the arbitration, the Company expects
to receive approximately $650,000. The Company intends to apply
these funds, upon receipt, to outstanding trade and other obligations.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c)Exhibits
(99) Additional Exhibits
1. Arbitration award in the matter of the Arbitration between Telcom
Network, Inc.("TNI") and GE Capital Communication Services Corp.
("GECCS") and New Enterprise Wholesale Services, Ltd.("NEWS").
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SIGNATURES
Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the registrant ("SCI") has duly caused this report to be signed on it's
behalf by the undersigned thereunto duly authorized.
SYSTEMS COMMUNICATIONS, INC.("SCI") Date: October 29, 1996
By /s/ Edwin B. Salmon
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EDWIN B. SALMON, JR.
Chairman of the Board of Directors
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INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION OF EXHIBITS
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(99) ADDITIONAL EXHIBITS
1. Arbitration award in the matter of the Arbitration between Telcom
Network, Inc.("TNI") and GE Capital Communication Services
Corporation ("GECCS") and New Enterprise Wholesale Services,Ltd.
("NEWS").
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EXHIBIT 99.1
AMERICAN ARBITRATION ASSOCIATION
Arbitration Tribunal
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In the matter of the Arbitration between
TELECOM NETWORK, INC.
- -AND-
GE CAPTITAL COMMUNICATION SERVICES CORP.
AND NEW ENTERPRISE WHOLESALE SERVICES, LTD.
CASE NUMBER: 30 X199 00212 95
WE, THE UNDERSIGNED ARBITRATORS, having been designated in
accordance with the Arbitration Agreement entered into by the above-named
parties and dated December 1, 1994 and having been duly sworn and having
duly heard the proofs, allegations and evidence of the parties, AWARD as
follows:
Having considered the claims and counterclaims, GE CAPITAL COMMUNICATION
SERVICES CORP. AND NEW ENTERPRISE WHOLESALE SERVICES, LTD. are jointly
and severally liable to pay to TELCOM NETWORK, INC. the sum of ONE MILLION
TWO HUNDRED FIFTY-THREE THOUSAND THREE HUNDRED SIXTY-FOUR DOLLARS AND NO CENTS
($1,253,364.00) in compensatory damages for breach of contract to be paid within
fifteen (15) days from the date of the award. Thereafter, said sum will bear
interest at twelve percent (12%) per annum until paid.
All rights of TELCOM NETWORK, INC. to receive any payments due under Section
14.5 of the Services and Marketing Agreement on accounts remaining on
December 31, 1996 are preserved.
Each party shall bear its own costs and attorneys' fees.
The Administrative fees and expenses of the American Arbitration Association
totaling SEVEN THOUSAND FOUR HUNDRED THIRTY DOLLARS AND NINETY-SEVEN CENTS
($7,430.97) shall be borne equally by the parties. Therefore, GE CAPITAL
COMMUNICATION SERVICES CORP. and NEW ENTERPRISE WHOLESALE SERVICES, LTD. shall
pay TELCOM NETWORK,INC. the sum of ONE THOUSAND SEVEN HUNDRED THIRTY-EIGHT
DOLLARS AND FORTY-FIVE CENTS ($1,738.45) for that portion of their share of
administrative fees and expenses previously advanced by TELCOM NETWORK, INC. to
the Association and GE CAPITAL COMMUNICATION SERVICES CORP. and NEW ENTERPRISE
WHOLESALE SERVICES, LTD. shall pay to the American Arbitration Association the
sum of TWELVE DOLLARS AND THIRTY-TWO CENTS ($12.32) for administrative fees and
expenses still due the Association.
The compensation and expenses of the Arbitrators totaling TWENTY-SIX THOUSAND
SIX HUNDRED EIGHT DOLLARS AND THREE CENTS ($26,608.03) shall be borne equally
by the parties. Therefore, GE CAPITAL COMMUNICATION SERVICES CORP. and NEW
ENTERPRISE WHOLESALE SERVICES, LTD. shall pay to the American Arbitration
Assocation the sum of FOUR THOUSAND ONE HUNDRED FOUR DOLLARS AND ONE CENT
$(4,104.01) for compensation still due the arbitrators.
The Award is in full settlement of all claims submitted to this arbitration.
/s/ Sidney O. Smith /s/ Karen Wildau
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SIDNEY O. SMITH KAREN WILDAU
Arbitrator Arbitrator
/s/ Robert C. Boozer
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ROBERT C. BOOZER
Arbitrator
State of
County of
I, Sidney O. Smith Jr., do hereby affirm on my oath as arbitrator that I am the
individual described in and who executed this instrument, which is my Award.
9/23/96 /s/ Sidney O. Smith, Jr.
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(date) (signature of arbitrator)
State of
County of
I, Karen Wildau, do hereby affirm on my oath as arbitrator that I am the
individual described in and who executed this instrument, which is my Award.
9/24/96 /s/ Karen Wildau
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(date) (signature of arbitrator)
State of
County of
I, Robert C. Boozer, do hereby affirm on my oath as arbitrator that I am the
individual described in and who executed this instrument, which is my Award.
10/5/96 /s/ Robert C. Boozer
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(date) (signature of arbitrator)
