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 3, 1994
Eljer Industries, Inc.
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(Exact name of registrant as specified in charter)
Delaware 1-10181 75-2270874
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) No.)
17120 Dallas Parkway, Dallas, Texas 75248
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (214) 407-2600
Not applicable
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(Former name or former address, if changed since last report)
Item 5 Other Events
On February 3, 1994, Eljer Industries, Inc. (the "Company") announced that
the federal appeals court in Chicago affirmed substantially all of a previously-
announced arbitration award in favor of Kowin Development Company and against
the Company's wholly-owned subsidiary, Eljer Manufacturing, Inc ("Eljer
Manufacturing"). The appeals court vacated a portion of the damages award in
the amount of $1 million which, together with the Company's estimate of
approximately $725,000 of associated interest charges, will reduce the
aggregate award of damages, interest and attorneys' fees from approximately
$13.2 million to approximately $11.5 million. The Company previously posted
$13.2 million cash in lieu of an appeal bond against any payments it might
ultimately owe in this litigation. The arbitration award were included in a
charge against earnings in 1992.
The arbitration concerned claims against Household Manufacturing, Inc.
("Household"), the predecessor to Eljer Manufacturing, relating to a failed
joint venture in the People's Republic of China to manufacture and sell files.
Household's interest was sold in 1988. The claims do not involve any of Eljer
Manufacturing's current business operations.
The Company is currently analyzing the appeals court decision and is
seeking reimbursement for this arbitration award from Household.
The press released dated February 3, 1994, describing the above is filed as
an exhibit hereto and is incorporated by reference herein.
Item 7 Exhibits
99 The press release dated February 3, 1994, describing the Chicago
federal appeals court's affirmation of an arbitration award in favor
of Kowin Development Company.
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.
ELJER INDUSTRIES, INC.
Date: February 11, 1994 By/S/ Henry W. Lehnerer
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Henry W. Lehnerer
Vice President - Finance &
Chief Financial Officer
EXHIBIT INDEX
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Sequential
Exhibit No. Page No.
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99 The press release dated February 3, 1994,
describing the Chicago federal appeals court's
affirmation of an arbitration award in favor of
Kowin Development Company.
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News Release
FOR: ELJER INDUSTRIES, INC.
APPROVED BY: Edward W. Fordyce, Jr.
Vice President - General Counsel
(214) 407-2600
For Immediate Release
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CONTACT: Morgen-Walke Associates
Lynn Morgen/June Filingeri
(212) 850-5600
Ken Pieper (214) 701-8851
ELJER REPORTS APPEALS COURT RULING IN KOWIN SUIT
DALLAS, Texas, February 3, 1994 -- Eljer Industries, Inc. (NYSE:ELJ)
today announced that the federal appeals court in Chicago affirmed substantially
all of a previously-announced arbitration award in favor of Kowin Development
Company and against the Company's wholly-owned subsidiary, Eljer Manufacturing,
Inc. The appeals court vacated a portion of the damagesmillion which, together
with the Company's estimate of approximately $725,000 charges, will reduce the
aggregate award of damages, interest and attorneys' fees from approximately
$13.2 million to approximately $11.5 million. The Company previously posted
$13.2 million cash in lieu of an appeal bond against any payments it might
ultimately owe in this litigation. The arbitration award and related costs were
included in a charge against earnings in 1992.
The Company is presently analyzing the appeals court decision. Scott G.
Arbuckle, President and Chief Executive Officer of the Company stated, "We are
disappointed with the outcome of this matter. The liability for the arbitration
award is one of the major items for which Eljer is seeking reimbursement in its
pending lawsuit against Household International, Inc."
The arbitration concerned claims against Household Manufacturing, Inc.,
the predecessor to the Company's Eljer Manufacturing subsidiary, relating to a
failed joint venture in the People's Republic of China to manufacture and sell
files. Household Manufacturing's interest was sold in not involve any of Eljer
Manufacturing's current business operations.
Eljer Industries, Inc. is a leading manufacturer and marketer of high
quality building products, including plumbing, heating and ventilating products,
for the residential and commercial construction, remodeling and repair, and
do-it-yourself markets.
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(LETTERHEAD OF MORGEN-WALKE)