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): September 25, 2001
LIFE FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
| 0-22193 (Commission File No.) |
||
DELAWARE (State or Other Jurisdiction of Incorporation) |
33-0743195 (IRS Employer Identification No.) |
|
10540 Magnolia Avenue, Suite B, Riverside, CA 92503-1814 (Address of Principal Executive Offices) (Zip Code) |
||
(909) 637-4000
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, If Changed Since Last Report)
ITEM 5. OTHER EVENTS.
Life Financial Corporation announced that it has received notification from New Life Holdings that it will not close the previously announced agreement to purchase notes and warrants. The investor's decision was based on the Company's subordinated debenture holder's refusal to restructure its debt in accordance with the conditions of the agreement.
ITEM 7. EXHIBITS
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.
LIFE FINANCIAL CORPORATION
| Dated: October 3, 2001 | By: | /s/ STEVEN R. GARDNER Steven R. Gardner President and Chief Executive Officer |
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LIFE FINANCIAL CORPORATION ANNOUNCES CANCELLATION OF AGREEMENT TO ISSUE NOTES AND WARRANTS
Riverside, CA—September 25, 2001—Life Financial Corporation (Nasdaq: LFCO) (the "Company") announced that it has received notification from New Life Holdings that it will not close the previously announced agreement to purchase notes and warrants. The investor's decision was based on the Company's subordinated debenture holder's refusal to restructure its debt in accordance with the conditions of the agreement.
The Company has notified the Office of Thrift Supervision that the proposed transaction has been cancelled and the Company has requested additional time to recapitalize Life Bank. The Bank has been operating under a Prompt Corrective Action Directive since March of this year. The PCA Directive required the Bank to raise sufficient capital to achieve total risk-based capital of 8.0%; Tier 1 risk-based capital of 4.0%; and a leverage ratio of 4.0% by June 30, 2001 or to be recapitalized by merging or being acquired prior to September 30, 2001.
Steven R. Gardner, the Company's President and Chief Executive Officer said, "the investor's decision to terminate the transaction is a disappointment, however, with the assistance of our investment banker, we are pursuing all alternatives."
FORWARD-LOOKING COMMENTS
The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These include, but are not limited to, the following risks:
FOR INFORMATION ON LIFE FINANCIAL—PLEASE E-MAIL YOUR REQUEST TO rpainter@lifebank.net OR CALL ROY L. PAINTER, CHIEF FINANCIAL OFFICER AT 909.637.4095 OR STEVEN R. GARDNER, PRESIDENT AND CHIEF EXECUTIVE OFFICER AT 909.637.4110. PLEASE INCLUDE YOUR PHONE, FACSIMILE AND MAILING ADDRESS.