UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)

~~PURSUANT~~OF TOTHE ~~SECTION~~SECURITIES 13EXCHANGE ORACT ~~15(d)~~ OF ~~THE~~1934

~~SECURITIES~~DATE ~~EXCHANGE~~OF ~~ACT~~REPORT (DATE OF ~~1934~~EARLIEST EVENT REPORTED)

~~Date~~June of26, ~~report~~2003 ~~(date of earliest event reported):~~

June 20, 2003

Daisytek International Corporation

(Exact ~~Name~~name of ~~Registrant~~registrant as ~~Specified~~specified in ~~Charter~~ its charter)

Delaware	0-25400	75-2421746
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

1025 Central Expressway South, Suite 200

Allen, ~~Texas~~TX 75013

(Address of ~~Principal~~principal ~~Executive~~executive ~~Offices, including zip code~~office)

(972) 881-4700

(Registrant’s ~~Telephone~~telephone ~~Number~~number, including area code)

N/A

(Former ~~Name~~name or ~~Former~~former ~~Address~~address, if ~~Changed~~changed ~~Since~~since ~~Last~~last ~~Report~~report.)

ITEM 5. ~~OTHER~~ ~~EVENTS~~Other Events.

On ~~May~~June 73, 2003, Daisytek, ~~Incorporated,~~International ~~Arlington Industries~~Corporation, ~~Inc.,~~a ~~B.A. Pargh~~Delaware ~~Company,~~corporation ~~Daisytek Latin America, Inc., Digital Storage, Inc., The Tape Company, Tapebargains.com, Inc. and Virtual Demand, Inc.~~ (~~collectively,~~ the “~~Subsidiaries”), all of which are direct or indirect subsidiaries of Daisytek International Corporation (the “~~Company,” ~~and collectively with the Subsidiaries, the “Debtors”~~), ~~each~~ filed a voluntary petition ~~for relief~~ under Chapter 11 of ~~title 11 of~~ the United States Bankruptcy Code (the “Bankruptcy Code”) ~~in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (the “Bankruptcy Court”), under Case No~~. ~~03-34762-HDH-11.~~ OnThe ~~June 3, 2003, the~~ Company ~~filed~~remains ~~a voluntary petition for relief under the Bankruptcy Code~~ in the Bankruptcy Court under Case No. 03-35724-SAF-11. Joint administration of the Company’s Chapter 11 case has been granted in connection with the petitions filed by the Subsidiaries. The Debtors remain in possession of ~~their~~ its assets and properties, and ~~continue~~continues to operate ~~their~~its businesses and manage ~~their~~its properties as a “~~debtors~~debtor-in-possession” pursuant to the Bankruptcy Code.

On June 2026, 2003, Digital Storage, Inc., a Delaware corporation, a wholly-owned subsidiary of the ~~Subsidiaries~~Company ~~filed~~and ~~unaudited~~debtor-in-possession ~~Monthly~~under ~~Operating~~the ~~Reports~~Bankruptcy ~~for~~Code (“DSI”), completed the ~~period~~sale ~~May~~of 7substantially all of its assets (the “Assets”) to Dexxon Digital Storage, ~~2003~~Inc., ~~through~~a ~~May~~Delaware 31corporation (“Dexxon”), for a total purchase price of approximately $8.0 million pursuant to the terms and conditions of an Asset Purchase Agreement between DSI and Dexxon, dated June 24, 2003 (the “Purchase Agreement”). The purchase price ~~with~~for the ~~United~~Assets ~~States~~was ~~Bankruptcy~~based ~~Court~~on a formula negotiated by the parties in the Purchase Agreement. ~~The~~Under ~~Monthly~~the ~~Operating~~terms ~~Reports~~of ~~are~~the ~~included~~Purchase ~~herewith~~Agreement, the purchase price equaled the sum of (i) 61% of an amount equal to the difference between (A) the value of certain of DSI’s accounts receivable and DSI’s inventory as ~~Exhibits~~of ~~99.1~~the closing date and (B) reserves for such accounts receivable and inventory in the amounts of $383,000 ~~99.~~and $2, ~~99.3~~500,000, ~~99.4~~respectively; and 99(ii) $2,575,000.5.

~~Cautionary~~The ~~Statement~~Assets ~~Regarding~~sold ~~Operating~~included ~~Reports~~(i) ascertain ~~Filed~~of ~~with~~DSI’s accounts receivable and notes receivable, (ii) rights under certain executory contracts and unexpired leases, (iii) all of DSI’s inventory, furniture, fixtures, equipment and other tangible personal property, and intellectual property, and (iv) to the ~~Bankruptcy~~extent ~~Court~~transferable, DSI’s licenses, permits, consents, authorizations, approvals and certificates. In addition, Dexxon assumed certain liabilities of DSI.

The ~~Monthly~~sale ~~Operating~~of ~~Reports~~the ~~contain~~Assets ~~financial~~was ~~statements~~consummated ~~and~~pursuant ~~other~~to ~~information~~the ~~that~~provisions ~~has~~of ~~not~~Section ~~been~~363(f) ~~audited~~of orthe ~~reviewed~~Bankruptcy ~~by independent accountants and is subject to revision~~Code. ~~The~~An ~~Monthly~~auction ~~Operating Reports are in a format prescribed by applicable bankruptcy laws and contain information~~ for ~~periods that may be different from those required in~~ the ~~Company’s~~sale ~~reports pursuant~~of to the ~~Securities~~Assets ~~Exchange~~was ~~Act~~held ofon ~~1934~~June ~~(the “Exchange Act”)~~24, 2003. ~~The~~At ~~financial~~the ~~information~~auction, ~~included~~Dexxon inmade the ~~Monthly~~highest ~~Operating~~and ~~Reports~~best isoffer ~~only~~to ~~representative~~purchase of the ~~Subsidiaries included in each Monthly Operating Report~~Assets. ~~The~~On ~~information set~~June ~~forth~~25, in2003, the ~~Monthly~~Bankruptcy ~~Operating~~Court ~~Reports~~for ~~should~~the ~~not~~Northern beDistrict ~~viewed as indicative~~ of ~~future~~Texas ~~results~~approved ~~and~~the ~~should~~sale ~~not~~of bethe ~~used~~Assets ~~for~~to ~~investment purposes~~Dexxon.

~~Forward-Looking~~Substantially ~~Statements~~all of the proceeds of the sale have been used to satisfy a portion of the amounts owed to the Company’s senior secured lenders. The proceeds from the sale of Assets will not fully satisfy the debts owed by the Company to its secured and unsecured creditors, therefore, none of the proceeds will be available for distribution to the Company’s stockholders.

~~Certain~~ITEM statements used in this Form 8-K, including the Exhibits furnished herewith, may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act7. ~~These forward-looking statements about the financial condition, prospects, operations and business of the Debtors are generally accompanied by words such as “anticipates,”~~FINANCIAL ~~“expects,”~~STATEMENTS ~~“estimates,”~~AND ~~“believes,” “intends,” “plans” or similar expressions~~EXHIBITS. These forward-looking statements are subject to numerous risks, uncertainties and other factors, some of which are beyond the control of the Debtors that could cause actual results to differ materially from those forecasted or anticipated in such forward-looking statements.

~~ITEM~~(c) 7Exhibits. ~~FINANCIAL STATEMENTS AND EXHIBITS~~

~~(a)~~2.1 ~~Financial~~Asset ~~statements~~Purchase Agreement between Dexxon Digital Storage, Inc. and Digital Storage, Inc. effective as of ~~business~~June ~~acquired~~24, 2003.

~~Not~~99.1 ~~applicable~~Order Authorizing and Approving (i) Sale of Substantially All of the Assets of Digital Storage, Inc. Free and Clear of All Liens, Claims, Encumbrances and Other Interests and (ii) Assumption and Assignment of Certain Executory Contracts and Unexpired Leases, dated June 25, 2003.

~~(b)~~SIGNATURES ~~Pro forma financial information~~

Not applicable

99.1 Monthly Operating Report of Daisytek, Incorporated, B.A. Pargh Company and Virtual Demand, Inc. for the period May 7, 2003 through May 31, 2003.

99.2 Monthly Operating Report of The Tape Company and Tapebargains.com, Inc. for the period May 7, 2003 through May 31, 2003.

99.3 Monthly Operating Report of Arlington Industries, Inc. for the period May 7, 2003 through May 31, 2003.

99.4 Monthly Operating Report of Daisytek Latin America, Inc. for the period May 7, 2003 through May 31, 2003.

99.5 Monthly Operating Report of Digital Storage, Inc. for the period May 7, 2003 through May 31, 2003.

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.

DAISYTEK INTERNATIONAL CORPORATION By: /s/ ~~ERIC~~Dale TA. ~~LOGAN~~Booth ~~Eric~~Dale TA. ~~Logan~~Booth Interim Chief ~~Financial~~Executive Officer

~~Dated~~Date: July ~~June 20~~9, 2003

~~Index~~EXHIBIT toINDEX ~~Exhibits~~

ExhibitNumber		Description
99.1		Monthly Operating Report of Daisytek, Incorporated, B.A. Pargh Company and Virtual Demand, Inc. for the period May 7, 2003 through May 31, 2003.
Exhibit 2.1		Asset Purchase Agreement between Dexxon Digital Storage, Inc. and Digital Storage, Inc. effective as of June 24, 2003.
99.2		Monthly Operating Report of The Tape Company and Tapebargains.com, Inc. for the period May 7, 2003 through May 31, 2003.
Exhibit 99.1		Order Authorizing and Approving (i) Sale of Substantially All of the Assets of Digital Storage, Inc. Free and Clear of All Liens, Claims, Encumbrances and Other Interests and (ii) Assumption and Assignment of Certain Executory Contracts and Unexpired Leases, dated June 25, 2003.
99.3		Monthly Operating Report of Arlington Industries, Inc. for the period May 7, 2003 through May 31, 2003.
99.4		Monthly Operating Report of Daisytek Latin America, Inc. for the period May 7, 2003 through May 31, 2003.
99.5		Monthly Operating Report of Digital Storage, Inc. for the period May 7, 2003 through May 31, 2003.

Filing Compare · DAISYTEK INTERNATIONAL CORP /DE/