UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 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 29, 2009
VELOCITY
EXPRESS CORPORATION
(Exact
Name of Registrant as Specified in Charter)
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Delaware
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0-28452
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87-0355929
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(State
or Other Jurisdiction of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification
No.)
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One
Morningside Drive North
Bldg.
B, Suite 300
Westport,
Connecticut
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06880
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrants’
telephone number, including area code: (203) 349-4160
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following
provisions:
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Velocity
Express Corporation (the “Company”) received a copy of a letter dated June 29,
2009 addressed to Wilmington Trust Company, as trustee (the "Trustee") for the
holders (the “Noteholders”) of the Company’s Senior Secured Notes (the “Senior
Notes”). The letter was from Burdale Capital Finance, the Company’s
senior secured lender pursuant to a Loan and Security Agreement for a revolving
line of credit dated as of March 13, 2009 (the "Loan Agreement").
The
letter was a Senior Default Notice/Payment Blockage Notice
("Notice"). Pursuant to the letter, Burdale notified the Trustee that
certain Senior Covenant Defaults existed under its Loan Agreement with the
Company, including defaults with respect to delivery of financial statements and
with respect to minimum liquidity. The Notice also indicated that the
Company was projecting defaults in its maximum fixed charge coverage ratio,
including defaults which would be caused by the Company making the June 30, 2009
interest payment due to the Noteholders. Burdale provided notice that
pursuant to the terms of the Intercreditor Agreement between itself and the
Trustee, the Company was not authorized to make, and the Trustee was not
authorized to retain, a payment with respect to the Notes, including without
limitation, the interest payment due June 30, 2009. Such payment
blockage was stated to be in effect until the earliest to occur of (a) the
waiver of all existing defaults, (b) the repayment of the senior indebtedness to
Burdale in full, or (c) the passage of 180 days from the date of the
Notice.
On July
2, 2009, the Company received a letter from Burdale in which Burdale gave the
Company notice of defaults relating to its minimum fixed charge coverage ratio,
minimum liquidity, delivery of timely financial information, and failure to make
the June 30, 2009 interest payment due to the holders of the Senior
Notes. Burdale stated that it is not currently exercising any of the
rights and remedies available to it under the Loan Agreement by reason of such
defaults, but that it and reserved all of its rights to take action with respect
to such defaults in the future.
Forward Looking
Statements
This
Current Report on Form 8-K contains forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, including statements with respect to its new senior
financing. Forward-looking statements typically are identified by use
of terms such as “may,” “will,” “should,” “plan,” “expect,” “anticipate,”
“estimate” and similar words, although some forward-looking statements are
expressed differently. Forward-looking statements include statements
such as whether Burdale or the Noteholders will take any action with respect to
the defaults described above, and represent the management’s judgment regarding
future events. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, the Company can give no
assurance that such expectations will prove to be correct. All
statements other than statements of historical fact included in this Current
Report on Form 8-K are forward-looking statements. The Company cannot
guarantee the accuracy of the forward-looking statements, and you should be
aware that the Company’s actual results could differ materially from those
contained in the forward-looking statements due to a number of factors,
including the statements under the heading “Risk Factors” contained in the
Company’s filings with the Securities and Exchange Commission.
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.
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VELOCITY
EXPRESS CORPORATION
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By:
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Name:
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Edward
W. Stone
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Title:
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Chief
Financial Officer
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Date:
July 2, 2009