SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)(1)
Puroflow Incorporated
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(Name of issuer)
COMMON STOCK, $.01 PAR VALUE
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(Title of class of securities)
746 375 104
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(CUSIP number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME & ROSENZWEIG LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
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(Name, address and telephone number of person
authorized to receive notices and communications)
September 10, 1998
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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 which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box
/ /.
Note. six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom copies
are to be sent.
(Continued on following pages)
(Page 1 of 8 Pages)
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(1) 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 disclosures provided in a prior cover page.
The information required on 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 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. 746 375 104 13D Page 2 of 8 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
STEEL PARTNERS II, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
DELAWARE
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 844,600
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
-0-
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
844,600
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
844,600
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 746 375 104 13D Page 3 of 8 Pages
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1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
WARREN LICHTENSTEIN
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 844,600
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
- 0 -
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
844,600
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
844,600
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.9%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 746 375 104 13D Page 4 of 8 Pages
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The following constitutes Amendment No. 1 ("Amendment No. 1") to the
Schedule 13D filed by the undersigned. This Amendment No. 1 amends the Schedule
13D as specifically set forth.
Item 4 is hereby amended by adding the following:
Item 4. Purpose of Transaction.
On September 10, 1998, the Warren G. Lichtenstein sent a
letter (the "Letter") to Reuben Siwek, the Issuer's Chief Executive Officer, in
which, among other things, Mr. Lichtenstein expressed his concern and dismay
over the recent actions taken by the Issuer regarding the sale by the Issuer of
one million Shares of Common Stock to members of the Board of Directors,
officers and employees of the Issuer as disclosed in the Form 8-K filed by the
Issuer on August 24, 1998. In the Letter, Mr. Lichtenstein interpreted these
actions as a breach of the Board of Director's fiduciary duty and requested that
the action be either rescinded immediately or extended on the same terms to all
of the shareholders of the Issuer. In addition, on September 10, 1998 the
Reporting Persons issued a press release (the "Press Release") expressing the
same concerns and attaching a copy of the Letter as an exhibit.
The descriptions of the Letter and the Press Release contained
herein do not purport to be complete, and are qualified in their entirety by
reference to the Letter and the Press Release, which are filed as Exhibit 2 and
Exhibit 3, respectively, to this Amendment No. 1.
Item 7 is hereby amended as follows:
Item 7. Material to be Filed as Exhibits.
1. Joint Filing Agreement (previously filed)
2. Press Release dated September 10, 1998
3. Letter to Reuben Siwek from Warren G. Lichtenstein
dated September 10, 1998
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CUSIP No. 746 375 104 13D Page 5 of 8 Pages
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SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: September 14, 1998 STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By:/s/ Warren G. Lichtenstein
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Warren G. Lichtenstein
Chief Executive Officer
/s/ Warren G. Lichtenstein
--------------------------------
WARREN G. LICHTENSTEIN
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CUSIP No. 746 375 104 13D Page 6 of 8 Pages
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EXHIBIT INDEX
Exhibit Page
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1. Joint Filing Agreement (previously
filed)
2. Press Release dated September 10, 1998 7
3. Letter to Reuben Siwek from Warren G.
Lichtenstein dated September 10, 1998 8
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CUSIP No. 746 375 104 13D Page 7 of 8 Pages
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Exhibit 2.
STEEL PARTNERS, L.L.C.
150 EAST 52ND STREET
21ST FLOOR
NEW YORK, NEW YORK 10022
TEL (212) 813-1500
FAX: (212) 813-2198
FOR IMMEDIATE RELEASE
Contact:
Warren Lichtenstein
Steel Partners, L.L.C.
(212) 813-1500
New York, New York -- September 10, 1998 - Steel Partners, L.L.C., (the owner of
approximately 12% of Puroflow) today sent a letter to the Chairman of Puroflow
Inc. (OTC:PURO) criticizing the insider transaction between the Company and
certain employees concerning the sale of up to one million shares of Puroflow
stock.
Steel Partners believes this offering represents a breach of fiduciary duties by
Puroflow's Board. Steel Partners' letter demands that the transaction be
immediately rescinded or extended to all Puroflow's shareholders rather than
just members of the Company Board, officers and employees. The transaction was
disclosed in a Form 8-K recently filed by the Company.
[Complete text of letter follows]
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CUSIP No. 746 375 104 13D Page 8 of 8 Pages
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Exhibit 3.
September 10, 1998
Reuben Siwek
Puroflow Inc.
16559 Saticoy St.
Van Nuys, CA 91406-1739
Dear Reuben,
I have recently reviewed the Puroflow's Form 8-K which was filed with the
Securities and Exchange Commission on August 24, 1998 regarding the sale of one
million shares to members of the Board of Directors, officers and employees of
Puroflow.
As you know, Steel Partners owns approximately 12% of Puroflow and purchased our
shares for investment purposes.
We were deeply concerned and dismayed to see that Puroflow and the Board would
move forward in offering certain individuals the opportunity to purchase shares
at 75 cents per share, and only have to put down 20% of the purchase price,
with the balance of the money being provided by a non-recourse three year note
from Puroflow at a below average interest rate. We believe that making this
offer was a breach of the Board's fiduciary duties at the expense of all other
shareholders. Accordingly, we believe this action should be rescinded
immediately or this offer should be extended to all of the shareholders of
Puroflow, not just the members of the Board, the officers and the employees of
Puroflow.
Please feel free to call me at your earliest convenience if you would like to
discuss this matter. We have, over the past couple of weeks, spoken to other
significant shareholders who feel the same way that we do. Thank you.
Sincerely,
Warren Lichtenstein
