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) December
13, 2007
ATSI
Communications, Inc.
(Exact
Name of Registrant as Specified in Its Charter)
Nevada
(State
or
Other Jurisdiction of Incorporation
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1-15687
(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.
On
Wednesday, December 12, 2007, ATSI Communications, Inc. (the "Registrant")
entered into a $3 million accounts receivable financing agreement with Wells
Fargo Business Credit (“WFBC”), a division of Wells Fargo Bank, N.A. Under the
terms of the Account Transfer Agreement, the Registrant may offer to sell with
recourse not less than $350,000 nor more than $3,000,000 in its accounts
receivable to WFBC each month during the term of the agreement, up to a maximum
amount outstanding at any time of $3,000,000. 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 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.
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 upon 30 days written notice at
the
end of each year. The Registrant is required to pay a fee in the amount of
0.5%
of the highest amount outstanding under the agreement 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.
On
December 12, 2007, the Registrant entered into the Account Transfer Agreement
described under Item 1.01 of this report. [As of the date of this report, the
Registrant has not sold any accounts to WFBC.]
ITEM
9.01. Financial
Statements and Exhibits.
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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Account
Transfer Agreement dated December 12, 2007 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.
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By: |
/s/ Antonio
Estrada
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Antonio
Estrada |
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Corporate
Controller |