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) August 7, 1996
SUN CITY INDUSTRIES, INC.
(exact name of registrant as specified in its charter)
Delaware 1-6914 59-0950777
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
5545 N.W. 35th Avenue, Fort Lauderdale, Florida 33309
(Address of Principal Executive Offices)
Registrant's telephone number, including area code (954) 730-3333
Inapplicable
(Former name or former address, if changed since last report)
Item 5. Other Events
On August 7, 1996, the registrant was notified by the lender under its
principal credit facility that it had borrowed $1.2 million in excess of the
lender's formula of the applicable borrowing base limitations and that,
therefore, certain technical events of default had occurred under its credit
facility. As a result, and until the events of default have been cured,
the rate of interest payable on the outstanding balance of $4.6 million has
increased from prime plus 2.50% to prime plus 4.25%. The Company
believes that the amount of the overadvance which has already been reduced to
$900,000, should be significantly reduced during the third fourth quarters
ended February 1, 1997 as a result of increased seasonal
sales, the possible sale of certain real estate held by the Company as
property held for sale, as well as from the collection of what the lender
classifies as ineligible accounts.
The Company and its lender have both come to an accommodation in principle
subject to the execution of a definitive agreement wherein the lender will
continue to provide the Company with its working capital requirements as
called for under the existing borrowing formula. The Company believes that
based on this arrangement and the fact that sales have already begun to
increase, it will have sufficient working capital to meet its day to day
obligations.
In addition to the lender providing cash for operations, the Company
believes it will require additional financing to meet other obligations and
capital needs. The Company is currently investigating the availability of
additional or substitute financing, as well as a capital investment to
satisfy its capital needs. If, however, the Company is not successful in
obtaining an investment or such financing, the Company may seek other
remedies to address any liquidity problems that may arise in the future.
Item 7. Exhibits
Copy of News Release.
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 thereunto duly authorized.
SUN CITY INDUSTRIES, INC.
Dated: August 22, 1996 By: ____________________________
Malvin Avchen
Chief Executive Officer
INDEX TO EXHIBITS
Sequentially
Exhibit Numbered
Number EXHIBIT Page
1. News Release 1
