content: <HTML><HEAD>
  <TITLE>Form 8-K</TITLE>
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  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><HR SIZE="3" NOSHADE COLOR="#000000" ALIGN="left"><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
  SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="4" COLOR="#000000"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"
  ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Washington, D.C. 20549 </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR WIDTH="17%" SIZE="1" NOSHADE COLOR="#000000"><P
  STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5" COLOR="#000000"><B>FORM 8-K </B></FONT></P><P
  STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>CURRENT REPORT </B></FONT></P><P
  STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3" COLOR="#000000"><B>Pursuant to Section 13 or 15(d) of The Securities Exchange
  Act of 1934 </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="75%" BORDER="0" ALIGN="center">
  
  <TR>
  <TD VALIGN="top" ALIGN="right" WIDTH="65%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Date of Report (Date of earliest event reported):</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="12%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>April&nbsp;9,&nbsp;2003</B></FONT></P><HR SIZE="1" NOSHADE ALIGN="left" COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD><FONT SIZE="1">&nbsp;</FONT></TD></TR>
  </TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR WIDTH="17%" SIZE="1" NOSHADE COLOR="#000000"><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
  SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5" COLOR="#000000"><B>READ-RITE CORPORATION </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
  FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>(Exact name of registrant as specified in its charter) </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">
  
  <TR>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="31%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Delaware</B></FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="31%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>000-19512</B></FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="31%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>94-2770690</B></FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"></TD></TR>
  <TR>
  <TD VALIGN="top" ALIGN="center" WIDTH="31%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(State&nbsp;or&nbsp;other&nbsp;jurisdiction of&nbsp;incorporation)</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="top" ALIGN="center" WIDTH="31%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Commission File&nbsp;Number)</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="top" ALIGN="center" WIDTH="31%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(IRS&nbsp;Employer Identification&nbsp;No.)</FONT></P></TD></TR>
  </TABLE><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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  <TD VALIGN="top" ALIGN="center" WIDTH="69%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>44100 Osgood Road, Fremont, California</B></FONT></P><HR SIZE="1" NOSHADE
  COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="9%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>94539</B></FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD><FONT SIZE="1">&nbsp;</FONT></TD></TR>
  <TR>
  <TD VALIGN="top" ALIGN="center" WIDTH="69%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Address of principal executive offices)</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="9%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Zip&nbsp;Code)</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD><FONT SIZE="1">&nbsp;</FONT></TD></TR>
  </TABLE><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="75%" BORDER="0" ALIGN="center">
  
  <TR>
  <TD VALIGN="top" ALIGN="right" WIDTH="64%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Registrant&#146;s telephone number, including area code:</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" NOWRAP WIDTH="13%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>(510)&nbsp;683-6100</B></FONT></P><HR SIZE="1" NOSHADE ALIGN="left" COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD><FONT SIZE="1">&nbsp;</FONT></TD></TR>
  </TABLE><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="50%" BORDER="0" ALIGN="center">
  
  <TR>
  <TD VALIGN="top" ALIGN="center" WIDTH="100%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>N.A.</B></FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"></TD></TR>
  <TR>
  <TD VALIGN="top" ALIGN="center" WIDTH="100%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(Former&nbsp;name&nbsp;or&nbsp;former&nbsp;address, if&nbsp;changed
  since&nbsp;last&nbsp;report)</FONT></P></TD></TR>
  </TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><HR SIZE="3" NOSHADE COLOR="#000000" ALIGN="left">
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  
  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Item
  5.&nbsp;&nbsp;&nbsp;&nbsp;Other Events </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">On
  April 9, 2003, Read-Rite Corporation (the &#147;Company&#148;) issued a press release announcing that it was notifying all shareholders of its recent financing with Tennenbaum Capital Partners, LLC and explaining the basis for the exception it
  received from Nasdaq concerning relief from the requirement for obtaining shareholder approval in connection with this transaction. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P
  STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The press release also announced that, on March 31, 2003, the Company amended and restated its Preferred Shares Rights Agreement, dated as
  of March 3, 1997, by and between Read-Rite and Mellon Investor Services LLC (formerly ChaseMellon Shareholder Services, LLC) (the &#147;Original Rights Agreement&#148;) to, among other things, avoid a Triggering Event upon the issuance or exercise
  of the warrants in connection with the Tennenbaum financing. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"
  COLOR="#000000">A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P
  STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The text of the notification, which was first sent to shareholders on or about April 9, 2003, appears in substance below: </FONT></P><P
  STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B><U>One-for-Five Reverse Stock Split</U> </B></FONT></P><P
  STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">On February 20, 2003, pursuant to the authority granted by
  our stockholders at our 2003 Annual Meeting of Stockholders, and the approval, authorization and direction of the Board of Directors on February 5, 2003, the Company filed with the Secretary of State of Delaware a certificate of amendment to the
  Company&#146;s certificate of incorporation, causing a one-for-five reverse split of the then outstanding shares of our common stock, effective on February 24, 2003. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT
  SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">For ease of comparison, all references to share numbers below give effect to the one-for-five reverse stock
  split, whether the reference is to a time period before or after the reverse stock split actually occurred. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT
  FACE="Times New Roman" SIZE="2" COLOR="#000000"><B><U>Adjustment of Preferred Share Purchase Rights in Connection with Reverse Split</U> </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P
  STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">On March 3, 1997, the Company&#146;s Board of Directors authorized and declared a dividend of a right to purchase a share of a then newly
  created Series A Participating Preferred Stock for each share of our common stock outstanding as of the close of business on March 17, 1997. The terms and conditions of these rights are set forth in the Original Rights Agreement attached as Exhibit
  1 to the Company&#146;s registration statement on Form 8-A, filed with the Securities and Exchange Commission on March 6, 1997. Unless and until the happening of certain Triggering Events, as defined in the rights agreement, the rights are
  unexercisable and are attached to and trade with shares of the Company&#146;s common stock. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
  FACE="Times New Roman" SIZE="2" COLOR="#000000">The following table summarizes the effects of the reverse stock split on the Rights by comparing the number of Rights associated with each Common Share outstanding, the Exercise Price and number of
  one-thousandths of a Preferred Share (or shares of such other capital stock) issuable upon the exercise of each Right outstanding, immediately before and after the effective time </FONT>
  </P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">-1- </FONT></P>
  
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  
  <P STYLE="margin-top:0px;margin-bottom:0px">
  <FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">of the reverse stock split (all capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Preferred
  Shares Rights Agreement): </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE" ALIGN="center">
  
  <TR>
  <TD><FONT SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>Immediately&nbsp;before effective time of</B></FONT></P> <P
  STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>reverse&nbsp;stock&nbsp;split</B></FONT></P><HR SIZE="1" NOSHADE COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>Immediately&nbsp;after effective time of reverse&nbsp;stock&nbsp;split</B></FONT></P><HR SIZE="1"
  NOSHADE COLOR="#000000"></TD></TR>
  <TR BGCOLOR="#cceeff">
  <TD VALIGN="top" WIDTH="72%"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Number of Rights associated with each Common Share outstanding</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="14%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">One</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="13%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">One</FONT></P></TD></TR>
  <TR>
  <TD VALIGN="top" WIDTH="72%"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Exercise Price</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="14%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">$150.00</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="13%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">$750.00</FONT></P></TD></TR>
  <TR BGCOLOR="#cceeff">
  <TD VALIGN="top" WIDTH="72%"> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Number of one-thousandths of a Preferred Share (or shares of such other capital stock)
  issuable upon the exercise of each Right outstanding</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="14%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">One</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" ALIGN="center" WIDTH="13%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">One</FONT></P></TD></TR>
  </TABLE><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B><U>Private Financing
  Activities</U> </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">On December 26, 2002, the
  Company entered into a $30 million credit facility with Tennenbaum Capital Partners, LLC (&#147;Tennenbaum&#148;). On December 27, 2002, the Company borrowed $10.2 million under the facility and paid a facility fee of $1.5 million. </FONT></P><P
  STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Under the terms of the credit agreement, the Company issued to
  Tennenbaum, in a private placement, warrants to purchase approximately 4.8 million shares of the Company&#146;s common stock at an exercise price of $1.35 per share, the closing market price per share of the Company&#146;s common stock on December
  20, 2002. The Company&#146;s book value at the time the warrants were issued was approximately $2.70 per share. The shares of common stock issuable upon exercise of these warrants represented approximately 19.9% of the total number of shares of the
  Company&#146;s common stock and voting power outstanding before the issuance of the warrants. The Company did not seek stockholder approval in connection with this transaction.<B></B> </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT
  SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The availability of additional funds under the credit facility was determined by a borrowing-base formula
  that depended, among other things, on the Company&#146;s eligible accounts receivable. Due to difficulties in making the accounts receivable eligible for borrowing (as &#147;eligible&#148; is defined under the credit agreement), the Company was
  unable to draw down significant additional funds under the credit facility. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
  FACE="Times New Roman" SIZE="2" COLOR="#000000">On April 1, 2003, the existing credit agreement with Tennenbaum was amended. The amendment (i) provides the Company with instant access to an additional $2.5 million against the Company&#146;s
  property, plant and equipment (without granting any additional liens), and (ii) eases the borrowing-base eligibility formula for the Company&#146;s accounts receivable, which will provide the Company with easier access to the remaining balance of
  the $30 million credit facility. In addition, </FONT>
  </P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">-2- </FONT></P>
  
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  
  <P STYLE="margin-top:0px;margin-bottom:0px">
  <FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Tennenbaum is providing an additional $5.0 million loan under a separate promissory note, for aggregate available loans, including the
  existing credit facility, of $35 million. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">In
  return for Tennenbaum&#146;s agreement to amend the credit agreement and to loan the Company an additional $5.0 million, the Company agreed to issue to Tennenbaum, ten days after the date on which notification of the transaction is first sent to
  shareholders, seven-year detachable warrants to purchase 6,000,000 shares of the Company&#146;s common stock at an exercise price equal to $0.65 per share, the closing market price per share of the Company&#146;s common stock on March 31, 2003 (the
  &#147;New Warrants&#148;). The Company also agreed to issue to Tennenbaum, ten days after the date on which notification of the transaction is first sent to shareholders, seven-year detachable warrants to purchase 20,000,000 shares of the
  Company&#146;s common stock at an exercise price equal to $0.25 per share (the &#147;Contingent Warrants&#148;), of which warrants to purchase 10,000,000 shares are immediately exercisable and warrants to purchase the remaining 10,000,000 shares
  shall either (i) vest on September 28, 2003 and become exercisable on November 12, 2003, in the event that the Company is unable to achieve a financial performance target, based upon the Company&#146;s current projections, for the fiscal quarter
  ending on September 28, 2003, or (ii) terminate without becoming exercisable in the event that the Company is able to achieve the financial target for such fiscal quarter. The remaining Contingent Warrants would also terminate if the Company
  pre-pays all obligations due Tennenbaum under the credit agreement on or before November 12, 2003 or if the company is acquired on or before September 28, 2003. The Company&#146;s book value as of January 30, 2003, the most recent balance sheet date
  in connection with this transaction, was approximately $1.55 per share. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
  SIZE="2" COLOR="#000000">The shares underlying the new warrants represent approximately 107.4% of the total number of shares of the Company&#146;s common stock and voting power outstanding before issuance of the warrants. The initial warrants
  together with the new warrants represent approximately 127.3% of the total number of shares of the Company&#146;s common stock and voting power outstanding before issuance of the initial warrants. Assuming vesting of the Contingent Warrants and the
  exercise by Tennenbaum of all warrants issued to Tennenbaum by the Company, Tennenbaum would own approximately 56.0% of the total number of shares of the Company&#146;s common stock outstanding after giving effect to such exercise. Should the
  Company achieve the September quarter financial target and the remaining Contingent Warrants are cancelled, and likewise assuming immediate exercise by Tennenbaum of all other warrants issued to Tennenbaum by the Company, Tennenbaum would own
  approximately 46.2% of the total number of shares outstanding after giving effect to such exercise. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT
  FACE="Times New Roman" SIZE="2" COLOR="#000000"><B><U>Exception from Stockholder Approval Requirement</U> </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P
  STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The rules of the Nasdaq Stock Market require issuers to obtain stockholder approval prior to the sale or issuance of common stock (or
  securities convertible into or exercisable for common stock) equal to 20% or more of the common stock or 20% or more of the voting power outstanding before the issuance for less than greater of book or market value of the stock, and prior to any
  issuance of common stock (or securities convertible into or exercisable for common stock) that would cause a change in control of the issuer. The rules also provide for an exception to the stockholder approval requirement in the event that a delay
  in securing stockholder approval would seriously jeopardize the financial viability of the enterprise. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">-3- </FONT></P>
  
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  
  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">On March 7 and
  March 30, 2003, the Audit Committee of the Company&#146;s Board of Directors determined that the delay inherent in seeking stockholder approval in connection with the proposed transaction with Tennenbaum would seriously jeopardize the financial
  viability of the Company and authorized and directed the officers of the Company to seek from Nasdaq an exception to the stockholder approval requirement in connection with the Tennenbaum financing. On March 14, 2003, the Company applied for an
  exception to the Nasdaq stockholder approval requirement in connection with the Tennenbaum financing; and, on April 1, 2003, Nasdaq granted the Company such exception. In order for the Company to avail itself of this exception, the Nasdaq rules
  require the Company to provide stockholders with notice of the issuance pursuant the exception at least ten days prior to the issuance of the warrants to Tennenbaum in connection with the financing. </FONT></P><P
  STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B><U>Amendment and Restatement of Preferred Shares Rights Plan</U>
  </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">On March 31, 2003, the Company amended and
  restated the Original Rights Agreement to, among other things, avoid a Triggering Event upon the issuance or exercise of the warrants in connection with the Tennenbaum financing described above. The Amended and Restated Preferred Shares Rights
  Agreement dated as of March 31, 2003, by and between the Company and Mellon Investor Services LLC (formerly ChaseMellon Shareholder Services, L.L.C.) appears as Exhibit 1 to Amendment No. 1 to our registration statement on Form 8-A, filed with the
  Securities and Exchange Commission on April 4, 2003. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Item
  7.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
  <TR>
  <TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(a)</FONT></TD>
  <TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
  <TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Exhibits. </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
  <TR>
  <TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
  <TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
  <TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The following exhibit is being filed with this report. </FONT></TD></TR></TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="83%" BORDER="0" ALIGN="center">
  
  <TR>
  <TD HEIGHT="5"></TD></TR>
  <TR>
  <TD VALIGN="top" WIDTH="5%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">99.1</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="87%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Press release dated April 9, 2003, announcing notification to all shareholders of Nasdaq exception in connection with
  additional financing; company also amends rights plan.</FONT></P></TD></TR>
  </TABLE><P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">-4- </FONT></P>
  
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  
  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>SIGNATURE
  </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">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. </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><DIV
  STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right">
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">
  
  <TR>
  <TD VALIGN="top" COLSPAN="3" WIDTH="37%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>READ-RITE CORPORATION</B></FONT></P></TD></TR>
  <TR>
  <TD HEIGHT="16"></TD></TR>
  <TR>
  <TD VALIGN="top" WIDTH="2%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">By:</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="top" WIDTH="37%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">/s/&nbsp;&nbsp;&nbsp;&nbsp;A<SMALL>NDREW</SMALL> C. H<SMALL>OLCOMB</SMALL></FONT></P><HR SIZE="1" NOSHADE ALIGN="left"
  COLOR="#000000"></TD></TR>
  <TR>
  <TD><FONT SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="37%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Andrew C. Holcomb</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"
  COLOR="#000000">Senior Vice President, Finance and</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Chief Financial Officer</FONT></P></TD></TR>
  </TABLE></DIV><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Date: April 10,
  2003 </FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">-5- </FONT></P>
  
  
  <p Style='page-break-before:always'>
  <HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">
  
  <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>EXHIBIT
  INDEX </B></FONT></P><P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
  <TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">
  
  <TR>
  <TD VALIGN="bottom" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>Exhibit&nbsp;No.</B></FONT></P><HR WIDTH="68" SIZE="1" NOSHADE COLOR="#000000"></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="90%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>Description</B></FONT></P><HR WIDTH="73" SIZE="1" NOSHADE ALIGN="left" COLOR="#000000"></TD></TR>
  <TR>
  <TD HEIGHT="5"></TD></TR>
  <TR>
  <TD VALIGN="top" ALIGN="center" WIDTH="9%"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">99.1</FONT></P></TD>
  <TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;&nbsp;</FONT></TD>
  <TD VALIGN="bottom" WIDTH="90%"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Press release dated April 9, 2003, announcing notification to all shareholders of Nasdaq exception in connection with
  additional financing; company also amends rights plan.</FONT></P></TD></TR>
  </TABLE>
  </BODY></HTML>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "d8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 34716}]
metadata_filer: {"company-data": {"conformed-name": "READ RITE CORP /DE/", "cik": "0000819480", "assigned-sic": "3679", "irs-number": "942770690", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-19512", "film-number": "03645738"}, "business-address": {"street1": "345 LOS COCHES ST", "city": "MILPITAS", "state": "CA", "zip": "95035", "phone": "4082626700"}, "mail-address": {"street1": "345 LOS COCHES STREET", "city": "MILPITAS", "state": "CA", "zip": "95035"}}
text: Form 8-K
  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):
  April 9, 2003
  READ-RITE CORPORATION
  (Exact name of registrant as specified in its charter)
  Delaware
  000-19512
  94-2770690
  (State or other jurisdiction of incorporation)
  (Commission File Number)
  (IRS Employer Identification No.)
  44100 Osgood Road, Fremont, California
  94539
  (Address of principal executive offices)
  (Zip Code)
  Registrant's telephone number, including area code:
  (510) 683-6100
  N.A.
  (Former name or former address, if changed
  since last report)
  Item
  5.    Other Events
  On
  April 9, 2003, Read-Rite Corporation (the "Company") issued a press release announcing that it was notifying all shareholders of its recent financing with Tennenbaum Capital Partners, LLC and explaining the basis for the exception it
  received from Nasdaq concerning relief from the requirement for obtaining shareholder approval in connection with this transaction.
  The press release also announced that, on March 31, 2003, the Company amended and restated its Preferred Shares Rights Agreement, dated as
  of March 3, 1997, by and between Read-Rite and Mellon Investor Services LLC (formerly ChaseMellon Shareholder Services, LLC) (the "Original Rights Agreement") to, among other things, avoid a Triggering Event upon the issuance or exercise
  of the warrants in connection with the Tennenbaum financing.
  A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
  The text of the notification, which was first sent to shareholders on or about April 9, 2003, appears in substance below:
  One-for-Five Reverse Stock Split
  On February 20, 2003, pursuant to the authority granted by
  our stockholders at our 2003 Annual Meeting of Stockholders, and the approval, authorization and direction of the Board of Directors on February 5, 2003, the Company filed with the Secretary of State of Delaware a certificate of amendment to the
  Company's certificate of incorporation, causing a one-for-five reverse split of the then outstanding shares of our common stock, effective on February 24, 2003.
  For ease of comparison, all references to share numbers below give effect to the one-for-five reverse stock
  split, whether the reference is to a time period before or after the reverse stock split actually occurred.
  Adjustment of Preferred Share Purchase Rights in Connection with Reverse Split
  On March 3, 1997, the Company's Board of Directors authorized and declared a dividend of a right to purchase a share of a then newly
  created Series A Participating Preferred Stock for each share of our common stock outstanding as of the close of business on March 17, 1997. The terms and conditions of these rights are set forth in the Original Rights Agreement attached as Exhibit
  1 to the Company's registration statement on Form 8-A, filed with the Securities and Exchange Commission on March 6, 1997. Unless and until the happening of certain Triggering Events, as defined in the rights agreement, the rights are
  unexercisable and are attached to and trade with shares of the Company's common stock.
  The following table summarizes the effects of the reverse stock split on the Rights by comparing the number of Rights associated with each Common Share outstanding, the Exercise Price and number of
  one-thousandths of a Preferred Share (or shares of such other capital stock) issuable upon the exercise of each Right outstanding, immediately before and after the effective time
  -1-
  of the reverse stock split (all capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Preferred
  Shares Rights Agreement):
  Immediately before effective time of
  reverse stock split
  Immediately after effective time of reverse stock split
  Number of Rights associated with each Common Share outstanding
  One
  One
  Exercise Price
  $150.00
  $750.00
  Number of one-thousandths of a Preferred Share (or shares of such other capital stock)
  issuable upon the exercise of each Right outstanding
  One
  One
  Private Financing
  Activities
  On December 26, 2002, the
  Company entered into a $30 million credit facility with Tennenbaum Capital Partners, LLC ("Tennenbaum"). On December 27, 2002, the Company borrowed $10.2 million under the facility and paid a facility fee of $1.5 million.
  Under the terms of the credit agreement, the Company issued to
  Tennenbaum, in a private placement, warrants to purchase approximately 4.8 million shares of the Company's common stock at an exercise price of $1.35 per share, the closing market price per share of the Company's common stock on December
  20, 2002. The Company's book value at the time the warrants were issued was approximately $2.70 per share. The shares of common stock issuable upon exercise of these warrants represented approximately 19.9% of the total number of shares of the
  Company's common stock and voting power outstanding before the issuance of the warrants. The Company did not seek stockholder approval in connection with this transaction.
  The availability of additional funds under the credit facility was determined by a borrowing-base formula
  that depended, among other things, on the Company's eligible accounts receivable. Due to difficulties in making the accounts receivable eligible for borrowing (as "eligible" is defined under the credit agreement), the Company was
  unable to draw down significant additional funds under the credit facility.
  On April 1, 2003, the existing credit agreement with Tennenbaum was amended. The amendment (i) provides the Company with instant access to an additional $2.5 million against the Company's
  property, plant and equipment (without granting any additional liens), and (ii) eases the borrowing-base eligibility formula for the Company's accounts receivable, which will provide the Company with easier access to the remaining balance of
  the $30 million credit facility. In addition,
  -2-
  Tennenbaum is providing an additional $5.0 million loan under a separate promissory note, for aggregate available loans, including the
  existing credit facility, of $35 million.
  In
  return for Tennenbaum's agreement to amend the credit agreement and to loan the Company an additional $5.0 million, the Company agreed to issue to Tennenbaum, ten days after the date on which notification of the transaction is first sent to
  shareholders, seven-year detachable warrants to purchase 6,000,000 shares of the Company's common stock at an exercise price equal to $0.65 per share, the closing market price per share of the Company's common stock on March 31, 2003 (the
  "New Warrants"). The Company also agreed to issue to Tennenbaum, ten days after the date on which notification of the transaction is first sent to shareholders, seven-year detachable warrants to purchase 20,000,000 shares of the
  Company's common stock at an exercise price equal to $0.25 per share (the "Contingent Warrants"), of which warrants to purchase 10,000,000 shares are immediately exercisable and warrants to purchase the remaining 10,000,000 shares
  shall either (i) vest on September 28, 2003 and become exercisable on November 12, 2003, in the event that the Company is unable to achieve a financial performance target, based upon the Company's current projections, for the fiscal quarter
  ending on September 28, 2003, or (ii) terminate without becoming exercisable in the event that the Company is able to achieve the financial target for such fiscal quarter. The remaining Contingent Warrants would also terminate if the Company
  pre-pays all obligations due Tennenbaum under the credit agreement on or before November 12, 2003 or if the company is acquired on or before September 28, 2003. The Company's book value as of January 30, 2003, the most recent balance sheet date
  in connection with this transaction, was approximately $1.55 per share.
  The shares underlying the new warrants represent approximately 107.4% of the total number of shares of the Company's common stock and voting power outstanding before issuance of the warrants. The initial warrants
  together with the new warrants represent approximately 127.3% of the total number of shares of the Company's common stock and voting power outstanding before issuance of the initial warrants. Assuming vesting of the Contingent Warrants and the
  exercise by Tennenbaum of all warrants issued to Tennenbaum by the Company, Tennenbaum would own approximately 56.0% of the total number of shares of the Company's common stock outstanding after giving effect to such exercise. Should the
  Company achieve the September quarter financial target and the remaining Contingent Warrants are cancelled, and likewise assuming immediate exercise by Tennenbaum of all other warrants issued to Tennenbaum by the Company, Tennenbaum would own
  approximately 46.2% of the total number of shares outstanding after giving effect to such exercise.
  Exception from Stockholder Approval Requirement
  The rules of the Nasdaq Stock Market require issuers to obtain stockholder approval prior to the sale or issuance of common stock (or
  securities convertible into or exercisable for common stock) equal to 20% or more of the common stock or 20% or more of the voting power outstanding before the issuance for less than greater of book or market value of the stock, and prior to any
  issuance of common stock (or securities convertible into or exercisable for common stock) that would cause a change in control of the issuer. The rules also provide for an exception to the stockholder approval requirement in the event that a delay
  in securing stockholder approval would seriously jeopardize the financial viability of the enterprise.
  -3-
  On March 7 and
  March 30, 2003, the Audit Committee of the Company's Board of Directors determined that the delay inherent in seeking stockholder approval in connection with the proposed transaction with Tennenbaum would seriously jeopardize the financial
  viability of the Company and authorized and directed the officers of the Company to seek from Nasdaq an exception to the stockholder approval requirement in connection with the Tennenbaum financing. On March 14, 2003, the Company applied for an
  exception to the Nasdaq stockholder approval requirement in connection with the Tennenbaum financing; and, on April 1, 2003, Nasdaq granted the Company such exception. In order for the Company to avail itself of this exception, the Nasdaq rules
  require the Company to provide stockholders with notice of the issuance pursuant the exception at least ten days prior to the issuance of the warrants to Tennenbaum in connection with the financing.
  Amendment and Restatement of Preferred Shares Rights Plan
  On March 31, 2003, the Company amended and
  restated the Original Rights Agreement to, among other things, avoid a Triggering Event upon the issuance or exercise of the warrants in connection with the Tennenbaum financing described above. The Amended and Restated Preferred Shares Rights
  Agreement dated as of March 31, 2003, by and between the Company and Mellon Investor Services LLC (formerly ChaseMellon Shareholder Services, L.L.C.) appears as Exhibit 1 to Amendment No. 1 to our registration statement on Form 8-A, filed with the
  Securities and Exchange Commission on April 4, 2003.
  Item
  7.    Financial Statements and Exhibits
  (a)
  Exhibits.
  The following exhibit is being filed with this report.
  99.1
  Press release dated April 9, 2003, announcing notification to all shareholders of Nasdaq exception in connection with
  additional financing; company also amends rights plan.
  -4-
  SIGNATURE
  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.
  READ-RITE CORPORATION
  By:
  /s/    A
  NDREW
  C. H
  OLCOMB
  Andrew C. Holcomb
  Senior Vice President, Finance and
  Chief Financial Officer
  Date: April 10,
  2003
  -5-
  EXHIBIT
  INDEX
  Exhibit No.
  Description
  99.1
  Press release dated April 9, 2003, announcing notification to all shareholders of Nasdaq exception in connection with
  additional financing; company also amends rights plan.