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): December 14, 2009
Sparta
Commercial Services, Inc.
(Exact
name of registrant as specified in its charter)
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Nevada
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0-9483
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30-0298178
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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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462
Seventh Avenue, 20th Floor,
New York, NY 10018
(Address
of principal executive offices) (Zip Code)
Registrant’s
telephone number, including area code: (212) 239-2666
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the obligation of the registrant under and of the following
provisions:
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-12(b) under the Exchange Act (17 CFR
240.14d-2(b))
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o
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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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Item
1.02 Termination of a Material Definitive Agreement.
In
December 2008, we, along with our wholly-owned affiliate, Sparta Funding LLC, a
Delaware limited liability company, entered into a $25,000,000 committed,
extendable, secured credit facility with DZBank AG Deutsche
Zentral-Genossenschaftsbank, Frankfurt am Main, New York Branch pursuant to a
Revolving Credit Agreement (the “RCA”). We were required to satisfy
certain tangible net worth and committed capital thresholds as a condition of
accessing funds under the DZBank credit facility. On October 13, 2009, we
notified DZ Bank that we believed we had satisfied such conditions and requested
that we be allowed to start utilizing the credit facility. As we were
approaching the one year anniversary of the signing of the RCA we formally
requested that the RCA be extended for one year as provided for in the RCA.
Subsequently, without permitting us to commence utilizing the credit facility,
on December 14, 2009, the Company was verbally notified by representatives of DZ
Bank that the Company’s request to extend the term of its Revolving Credit
Agreement (the “RCA”) for one year was denied due to DZ Bank’s German parent’s
concern over the United States general economic condition and, more
specifically, the weakness in the overall U.S. consumer market. Therefore, the
RCA will terminate pursuant to its terms on December 18, 2009.
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.
Dated: December 18, 2009
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SPARTA
COMMERCIAL SERVICES, INC. |
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By:
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/s/ A.L.
Havens |
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Name:
Anthony L. Havens |
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Title:
Chief Executive Officer |
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