UNITED
STATES
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) March
26,
2008
ATSI
Communications, Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Nevada
(State
or
Other Jurisdiction of Incorporation
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001-15687
(Commission
File Number)
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74-2849995
(I.R.S.
Employer Identification No.)
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3201
Cherry Ridge,
Building
C, Suite 300
San
Antonio, Texas
(Address
of Principal Executive Offices)
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78230
(Zip
Code)
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(210)
614-7240
(Registrant’s
Telephone Number, Including Area Code)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written communications
pursuant to Rule 425 under the Securities Act.
o
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act
o
Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act
| ITEM
1.01. |
Entry
into a Material Definitive
Agreement.
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On
March
26, 2008, ATSI Communications, Inc. (the "Registrant") amended its Account
Transfer Agreement with Wells Fargo Business Credit (“WFBC”), a division of
Wells Fargo Bank, N.A. to increase the maximum amount that may be outstanding
at
any time from $3,000,000 to $5,000,000. Under the terms of the amended
Agreement, the Registrant may offer to sell with recourse not less than $350,000
nor more than $5,000,000 in its accounts receivable to WFBC each month until
December 6, 2008, up to a maximum amount outstanding at any time of $5,000,000.
The Registrant is not obligated to offer accounts in any month and WFBC has
the
option to decline to purchase any accounts.
WFBC
will
pay Registrant the face amount of each domestic account sold less a fee of
0.0349% of the face amount for each day after the sale until the account is
collected in full. WFBC will pay Registrant the face amount of each foreign
account sold less a fee 1.02% of the face amount for the 1st
day
outstanding and an additional 0.0349% of the face amount of such account for
each additional day period that an account remains unpaid
thereafter.
If
any
account is not collected within 90 days after sale or WFBC determines that
the
account debtor is not financially able to pay the account, the Registrant is
required to repurchase such account from WFBC for the face amount thereof.
Performance of the agreement is secured by a security interest in all of the
Registrants accounts receivable and certain officers of the Registrant have
provided a limited guaranty for the benefit of WFBC in the event of a breach
of
representations by the Registrant with respect to any account sold or the
improper receipt and retention of payments under any account by any
person.
The
agreement may be terminated by the Registrant or WFBC upon 30 days written
notice before December 6, 2008 and renews automatically for an additional
one-year term if not terminated by either party. The Registrant is required
to
pay a fee in the amount of 0.3% of the Maximum Credit Facility ($5,000,000),
or
$15,000, if the agreement is terminated by WFBC for default or is terminated
by
the Registrant.
| ITEM
2.03. |
Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance
Sheet Arrangement of a
Registrant.
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On
March
26, 2008, the Registrant amended the Account Transfer Agreement with Wells
Fargo
described under Item 1.01 of this report. As of the date of this report, the
Registrant has sold approximately $850,000 of accounts receivables to WFBC.
| ITEM
9.01. |
Financial
Statements and Exhibits.
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The
following documents are filed as exhibits to this Report
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Exhibit
No.
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Description
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10.1
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Amendment
to Account Transfer Agreement dated March 26, 2008 between ATSI
Communications and Wells Fargo Business Credit Division of Well Fargo
Bank, National Association.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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ATSI
Communications, Inc.
Dated:
April 11, 2008
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By: |
/s/ Antonio
Estrada |
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Antonio
Estrada
Sr.
VP of Finance &
Corporate
Controller
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