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) June 5, 1998.
TENNEY ENGINEERING, INC.
(Exact name of registrant as specified in its charter)
New Jersey 1-4142 22-1323920
State or other (Commission File (IRS Employer
Jurisdiction of Number) Identification No.)
Incorporation)
1090 Springfield Road
Union, New Jersey 07083
(Address of Principal
Executive Offices) (Zip Code)
Registrant's Telephone Number, including area code: (908) 686-7870
Item 5 - Other Events
On September 12, 1996, Tenney Engineering, Inc. (the
"Company") and Summit Bank, (the "Bank") entered into a Loan and
Security Agreement ("Term Note") for a $300,000 renewable working
capital line of credit expiring May 31, 1997. At April 23, 1997 the
Term Note was renewed until May 31, 1998, and increased to the
amount of $750,000. The Bank was granted a security interest in
substantially all the Company's assets. As at June 5, 1998, the
Company had borrowed $750,000 under the Term Note. Payments of
interest are being met in accordance with the terms of the Note.
The Bank had made it known that it would not renew the Term Note on
May 31, 1998.
On June 5, 1998, the Company received notice dated June 2,
1998, from the Bank's counsel advising that the Bank shall expect
payment in full within thirty (30) days of the date of said notice.
As of May 29, 1998, the outstanding balance due and owing to the
Bank, including principal, interest and late charges was the sum of
$755,979.17. The per diem after May 29, 1998 is $213.54.
Counsel for the Bank further advised that if the Bank is not
in receipt of payment in full within thirty (30) days of the date
of said notice, the Bank will proceed to exercise all of its
available legal rights and remedies, including but not limited to,
the commencement of legal proceedings to collect the Note
indebtedness and to realize upon the Bank's collateral. As part of
any such legal proceedings, the Bank will also seek the collection
of its legal expenses.
The Company is currently negotiating with alternative
financing sources for replacement of the Term Note.
Item 7 - Financial Statements and Exhibits
(c) Exhibits
(10) i.(v) Letter from the Office of the General Counsel
Summit Bancorp dated June 2, 1998, to Tenney
Engineering, Inc. and DynaTenn, Inc.
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.
TENNEY ENGINEERING, INC.
(Registrant)
By: s/Martin Pelman
____________________________
Name: Martin Pelman
Title: Vice President, Finance/
Treasurer
(Principal Financial Officer)
Dated: June 16, 1998
EXHIBIT (10) i.(v)
LETTER FROM THE OFFICE OF THE GENERAL COUNSEL
SUMMIT BANCORP DATED JUNE 2, 1998
TO TENNEY ENGINEERING, INC. AND DYNATENN, INC.
Office of the General Counsel
Summit Bancorp
Three University Plaza
Suite 502
Hackensack, NJ 07601
(201) 883-7600
(201) 883-7614
June 2, 1998
CERTIFIED MAIL RETURN RECEIPT
REQUESTED AND REGULAR MAIL
Tenney Engineering, Inc.
1090 Springfield Road
Union, New Jersey 07083
Attention: Martin Pelman
DynaTenn Inc.
30 Wood Rock Road
Weymouth, Massachusetts 02188
RE: Summit Bank Revolving Line of Credit Loan in the maximum
principal sum of $750,000.00 (the Loan) to Tenney Engineering, Inc.
and DynaTenn, Inc. pursuant to Loan and Security Agreement dated
September 12, 1996, as amended by Agreements dated February 20,
1997, April 23, 1997 and May 30, 1997
Dear Sir/Madam:
I am counsel for Summit Bank with respect to the above
referenced Loan. As you know, the Loan matured and became due and
payable in full on May 31, 1998. Accordingly, Summit shall expect
payment in full within thirty (30) days of the date of this letter.
As of May 29, 1998, the outstanding balance due and owing in
respect of the Loan (including all principal, interest and late
charges) was the sum of $755,979.17. The per diem after May 29,
1998 is $213.54.
In the event that Summit is not in receipt of payment in full
within thirty (30) days of the date of this letter, please be
advised that Summit will proceed to exercise all of its available
legal rights and remedies, including but not limited to the
commencement of legal proceedings to collect the Note indebtedness
and to realize upon Summit's collateral. As part of any such legal
proceedings, Summit will also seek the collection of its legal
expenses.
This letter is without prejudice to, and specifically reserves
all of Summit's rights and remedies in this matter. Nothing
contained herein or omitted herefrom shall be deemed to be a waiver
of any of Summit's available legal rights and/or remedies.
Very truly yours,
s/Daniel F. Flores
Daniel F. Flores
DFF/cfb
cc: Joseph P. Link, VP
Peter Rado, Esq.
Ide, Haigney & Rado
317 Madison Avenue
New York, New York 10017
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