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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
Vanguard Airlines, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
92201B109
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(CUSIP Number)
J.F. Shea Company, Inc. c/o Edmund H. Shea, Jr.
655 Brea Canyon Road, Walnut, California 91789
(909) 594-9500
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
September 8, 2000
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or
240.13d-1(g), check the following box. [ ]
NOTE: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. Seess.240.13d-7 for
other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act, but shall be subject to all other provisions of the Act (however, see
the Notes).
<PAGE>
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CUSIP No. 92201B109 13D Page _____ of Pages _____
--------------------------------------------------------------------------------
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1) Names of Reporting Persons, I.R.S. Identification Nos. of Above
Persons (entities only)
J.F. Shea Company, Inc.
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
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3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
WC
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
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6) Citizenship or Place of Organization
California
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Number of Shares 7) Sole Voting Power - 7,474,862
----------------------------------------------------
Beneficially Owned 8) Shared Voting Power - 0 shares
----------------------------------------------------
by Each Reporting 9) Sole Dispositive Power - 7,474,862
----------------------------------------------------
Person with: 10) Shared Dispositive Power - 0 shares
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
7,474,862 shares
--------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
(See Instructions)
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
33.5%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
CO
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2
<PAGE>
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CUSIP No. 92201B109 13D Page _____ of Pages _____
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1) Names of Reporting Persons, I.R.S. Identification Nos. of Above
Persons (entities only)
Edmund H. Shea, Jr.
--------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
Number of Shares 7) Sole Voting Power - 5,000
----------------------------------------------------
Beneficially Owned 8) Shared Voting Power - 7,474,862 shares
----------------------------------------------------
by Each Reporting 9) Sole Dispositive Power - 5,000
----------------------------------------------------
Person with: 10) Shared Dispositive Power - 7,474,862 shares
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
7,479,862 shares
--------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
(See Instructions)
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
33.5%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
3
<PAGE>
--------------------------------------------------------------------------------
CUSIP No. 92201B109 13D Page _____ of Pages _____
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1) Names of Reporting Persons, I.R.S. Identification Nos. of Above
Persons (entities only)
John F. Shea
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
United States
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Number of Shares 7) Sole Voting Power - None
----------------------------------------------------
Beneficially Owned 8) Shared Voting Power - 7,474,862 shares
----------------------------------------------------
by Each Reporting 9) Sole Dispositive Power - None
----------------------------------------------------
Person with: 10) Shared Dispositive Power - 7,474,862 shares
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
7,474,862 shares
--------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
(See Instructions)
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
33.5%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
4
<PAGE>
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CUSIP No. 92201B109 13D Page _____ of Pages _____
--------------------------------------------------------------------------------
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1) Names of Reporting Persons, I.R.S. Identification Nos. of Above
Persons (entities only)
Peter O. Shea, Jr.
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
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3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
United States
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Number of Shares 7) Sole Voting Power - None
----------------------------------------------------
Beneficially Owned 8) Shared Voting Power - 7,474,862 shares
----------------------------------------------------
by Each Reporting 9) Sole Dispositive Power - None
----------------------------------------------------
Person with: 10) Shared Dispositive Power - 7,474,862 shares
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
7,474,862 shares
--------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
(See Instructions)
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
33.5%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
5
<PAGE>
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CUSIP No. 92201B109 13D Page _____ of Pages _____
--------------------------------------------------------------------------------
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1) Names of Reporting Persons, I.R.S. Identification Nos. of Above
Persons (entities only)
James G. Shontere
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3) SEC Use Only
--------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
Not Applicable
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
Number of Shares 7) Sole Voting Power - None
----------------------------------------------------
Beneficially Owned 8) Shared Voting Power - 7,474,862 shares
----------------------------------------------------
by Each Reporting 9) Sole Dispositive Power - None
----------------------------------------------------
Person with: 10) Shared Dispositive Power - 7,474,862 shares
--------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person
7,474,862 shares
--------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares [ ]
(See Instructions)
--------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11)
33.5%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
IN
--------------------------------------------------------------------------------
6
<PAGE>
ITEM 1 SECURITY AND ISSUER.
This Schedule 13D relates to the common stock, par value $0.001 per
share (the "Common Stock"), of Vanguard Airlines, Inc., a Delaware
corporation (the "Issuer"), which has its principal executive offices
at the Kansas City International Airport, 30 N.W. Rome Circle -
Mezzanine Level, Kansas City, Missouri 64153.
ITEM 2 IDENTITY AND BACKGROUND.
(a), (b) and (c) This Schedule 13D is filed on behalf of J.F. Shea Com-
pany, Inc. ("JFSCI"), John F. Shea, Edmund H. Shea, Jr. and Peter O.
Shea and James G. Shontere (collectively, the "Reporting Persons").
JFSCI is a Nevada corporation whose principal business is construction,
land development and venture capital investment. Its business address
is 655 Brea Canyon Road, Walnut, California 91789. The names of the
executive officers and directors of JFSCI, their addresses, citizenship
and principal occupations are as follows:
<TABLE>
<CAPTION>
PRINCIPAL
NAME AND OCCUPATION OR
OFFICE HELD BUSINESS ADDRESS CITIZENSHIP EMPLOYMENT
<S> <C> <C> <C>
John F. Shea 655 Brea Canyon Rd. USA President of JFSCI
President and Director Walnut, CA 91789
Edmund H. Shea, Jr. 655 Brea Canyon Rd. USA Vice President of
Vice President and Walnut, CA 91789 JFSCI
Director
Peter O. Shea 655 Brea Canyon Rd. USA Vice President of
Vice President and Walnut, CA 91789 JFSCI
Director
James G. Shontere 655 Brea Canyon Rd. USA Secretary/Treasurer
Secretary/Treasurer Walnut, CA 91789 of JFSCI
and Director
</TABLE>
(d) To the best knowledge of the Reporting Persons, during the
past five years, none of the entities or individuals
identified in this Item 2 have been convicted in a criminal
proceeding (excluding traffic violations or similar
misdemeanors).
(e) To the best knowledge of the Reporting Persons, during the
past five years, none of the entities or individuals
identified in this Item 2 has been a party to a civil
proceeding of a judicial or administrative body of competent
jurisdiction and therefore was not and is not subject to a
judgment, decree or final order enjoining
7
<PAGE>
future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any
violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
On August 9, 2000, JFSCI paid the Issuer $2,000,000 for the purchase
of Common Stock. In return, the Issuer issued a demand note to
JFSCI, in the amount of $2,000,000, to be cancelled upon completion
and execution of documents for JFSCI's purchase of Common Stock and
warrants to purchase Common Stock (the "Purchase"). On September 8,
2000, the Purchase closed and the Trust received 1,172,325 shares of
Common Stock and warrants to purchase 1,172,325 shares of Common
Stock pursuant to the cancellation of the demand note and accrued
interest in the aggregate amount of $2,000,000 in addition to the
shares the Trust has previously reported.
ITEM 4. PURPOSE OF TRANSACTION.
The Reporting Persons purchased the securities to increase JFSCI's
interests in the Issuer. Depending upon market conditions and other
factors, the Reporting Persons may acquire or dispose of additional
securities of the Issuer, in the open market, in privately negotiated
transactions or otherwise.
The Reporting Persons are regularly engaged in the business of
investing in publicly held and private companies. In connection with
their investments, the Reporting persons analyze the operations,
capital structure and markets of the companies in which they invest,
including the Issuer. As a result of these analytical activities, one
or more of the Reporting Persons may suggest or take a position with
respect to potential changes in the strategic direction, operations,
management or capital structure of such companies as a means of
enhancing shareholder value. Such communications may take place with
the Issuer's management, members of the Board of Directors, other
shareholders, security analysts or others. In particular, the Reporting
Persons believe that it would be desirable for the Issuer to explore
various strategic, operating and/or financial relationships with
Frontier Airlines or others, including possible business combinations.
Although the Reporting Persons reserve the right to develop plans or
proposals in the future with respect to the following items, except as
set forth above at the present time they have no plans or proposals
that relate to or would result in any of the following:
(a) the acquisition by any person of additional securities of the
Issuer, or the disposition of securities of the Issuer;
(b) an extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Issuer or any
of its subsidiaries;
(c) a sale or transfer of a material amount of assets of the
Issuer or any of its subsidiaries;
8
<PAGE>
(d) any change in the present board of directors or management of
the Issuer, including any plans or proposals to change the
number or term of directors or to fill any existing vacancies
on the board;
(e) any material change in the present capitalization or dividend
policy of the Issuer; (f) any other material change in the
Issuer's business or corporate structure;
(g) changes in the Issuer's charter, bylaws or instruments corres-
ponding thereto or other actions which may impede the
acquisition of control of the Issuer by any person;
(h) causing a class of securities of the Issuer to be delisted
from a national securities exchange or to cease to be
authorized to be quoted in an inter-dealer quotation system of
a registered national securities association;
(i) a class of equity securities of the Issuer becoming eligible
for termination of registration pursuant to Section 12(g)(4)
of the Securities Exchange Act of 1934; or
(j) any action similar to any of those enumerated in (a) through
(i) above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
According to information furnished by the Issuer on its most recent
Form 10Q, there were 17,109,921 shares of Common Stock issued and
outstanding as of June 30, 2000. Based on such information after taking
into account the transactions described herein, the Reporting Persons
report the information set forth below.
(a), (b) The Reporting Persons' power to vote or dispose of the
shares of Common Stock reported as being beneficially owned by
him or it was as follows:
<TABLE>
<CAPTION>
Voting Disposition
----------------------------------------------------------------------------------
COMMON STOCK Sole Shared Sole Shared
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Edmund H. Shea, Jr. 5,000 7,474,862 5,000 7,474,862*
JFSCI 7,474,862 -0- 7,474,862 -0-
Peter O. Shea -0- 7,474,862 -0- 7,474,862**
John F. Shea -0- 7,474,862 -0- 7,474,862**
James G. Shontere -0- 7,474,862 -0- 7,474,862**
</TABLE>
9
<PAGE>
* Of the 7,479,862 shares of Common Stock Mr. Edmund Shea may be deemed
to beneficially own, which represents approximately 33.5% of the sum of
the 17,109,921 shares of Common Stock outstanding as of the Issuer's
most recent 10Q filing, the 88,0452 shares of Common Stock issuable
upon the conversion of the Series A Preferred Stock and the 3,172,325
shares of Common Stock issuable upon the exercise of warrants, Mr. Shea
shares voting and dispositive power with respect to the 7,474,862
shares (including 880,452 shares of Common Stock issuable upon
conversion of the Series A Preferred Stock and 3,172,325 shares of
Common Stock issuable upon exercise of warrants) beneficially owned by
JFSCI with the other stockholders of JFSCI. Mr. Shea is a director,
executive officer and stockholder of JFSCI. For information regarding
JFSCI, see Item 2 above. Mr. Shea has sole dispositive power over 5,000
shares of Common Stock.
Mr. Edmund Shea also shares voting and dispositive power with respect
to the 15,000 shares held by Siam with the other partners of Siam. Siam
is a California limited partnership with its principal business and
principal office at 655 Brea Canyon Road, Walnut, California 91789.
Siam's principal business consists of investment activities. During the
last five years, neither Siam nor any of its partners has been
convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors). During the last five years, neither Siam nor any
of its partners has been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and therefore was not and
is not subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to,
federal or state securities laws or finding any violation with respect
to such laws as a result of any such proceeding.
** Mr. Peter Shea, Mr. John Shea and Mr. John Shontere may be deemed to
be the beneficial owners of the 7,474,862 shares of Common Stock owned
by JFSCI by virtue of their stock ownership in JFSCI and their posi-
tions as directors and executive officers of JFSCI.
Because voting and investment decisions with respect to the securities
held by JFSCI may be made by or in conjunction with the other Reporting
Persons, the Reporting Persons may be deemed to be members in a group.
All Reporting Persons, with the exception of JFSCI, disclaim membership
in a group and disclaim beneficial ownership in the 7,474,862 shares of
Common Stock owned by JFSCI.
(c) The Reporting Persons did not effect any transactions other
than those set forth in Items 3 and 4 above.
(d) Not applicable.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
10
<PAGE>
JFSCI holds 151,200 shares of the Issuer's Series A Preferred Stock,
immediately convertible into 880,452 shares of Common Stock, which was
purchased pursuant to the Series A Preferred Stock Purchase Agreement
dated March 20, 1998, by and among the Issuer, JFSCI and other
purchasers. JFSCI also holds warrants to purchase 3,172,325 shares of
Common Stock, which are immediately exercisable, which the reporting
person acquired in the transaction referred to above.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
The following material is filed as an Exhibit to this Schedule 13D:
1. Joint Filing Agreement, dated October 31, 2000, between Edmund
H. Shea, Jr., Peter O. Shea, John F. Shea, James G. Shontere
and J.F. Shea Company, Inc.
2. Unit Purchase Agreement, dated September 8, 2000 between the
Issuer, J.F. Shea Company, Inc. and the Hambrecht 1980
Revocable Trust, as previously filed and incorporated to
Amendment No. 1 to the Schedule 13D of the 1980 Hambrecht
Revocable Trust filed October 26, 2000.
11
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: October 31, 2000.
J.F. SHEA COMPANY, INC.
By: /s/ EDMUND H. SHEA, JR.
---------------------------
Name: Edmund H. Shea, Jr.
Title: Vice President
By: /s/ EDMUND H. SHEA, JR.
---------------------------
Edmund H. Shea, Jr.
By: /s/ PETER O. SHEA
----------------------------------
Peter O. Shea
By: /s/ JOHN F. SHEA
----------------------------------
John F. Shea
By: /s/ JAMES G. SHONTERE
----------------------------------
James G. Shontere
12
<PAGE>
EXHIBIT A
JOINT FILING UNDERTAKING
The undersigned, being duly authorized thereunto, hereby execute this
agreement as an exhibit to this Amendment to Schedule 13D to evidence the
agreement of the below-named parties, in accordance with rules promulgated
pursuant to the Securities Exchange Act of 1934, to file this Amendment jointly
on behalf of each of such parties.
Dated: October 31, 2000 J.F. SHEA COMPANY, INC.
By: /s/ EDMUND H. SHEA, JR.
----------------------------------
Name: Edmund H. Shea, Jr.
Title: Vice President
By: /s/ EDMUND H. SHEA, JR.
---------------------------
Edmund H. Shea, Jr.
By: /s/ PETER O. SHEA
----------------------------------
Peter O. Shea
By: /s/ JOHN F. SHEA
----------------------------------
John F. Shea
By: /s/ JAMES G. SHONTERE
----------------------------------
James G. Shontere
13
