<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO. 6
TO
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
THE FORTRESS GROUP, INC.
(NAME OF ISSUER)
Common Stock, par value $0.01 per share
(TITLE OF CLASS OF SECURITIES)
34956K108
(CUSIP NUMBER)
Klaus P. Kretschmann
Prometheus Homebuilders LLC
LF Strategic Realty Investors II L.P.
LFSRI II Alternative Partnership L.P.
LFSRI II-CADIM Alternative Partnership L.P.
30 Rockefeller Plaza, 63rd Floor
New York, NY 10020
(212) 632-6000
with a copy to:
R. Ronald Hopkinson, Esq.
Latham & Watkins
885 Third Avenue
New York, New York 10022
(212) 906-1200
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
June 3, 1999
(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(e), Rule 13d-1(f) or Rule 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. See Rule 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
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 ("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> 2
<TABLE>
<CAPTION>
SCHEDULE 13D
CUSIP No. 34956K108 PAGE 2 OF 8
<S> <C>
- ---------- -------------------------------------------------------------------------------------------------------------------------
1
NAME OF REPORTING PERSON
SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Prometheus Homebuilders LLC
- ---------- -------------------------------------------------------------------------------------------------------------------------
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) [X]
- ---------- -------------------------------------------------------------------------------------------------------------------------
3
SEC USE ONLY
- ---------- -------------------------------------------------------------------------------------------------------------------------
4
SOURCE OF FUNDS
AF (See Item 3)
- ---------- -------------------------------------------------------------------------------------------------------------------------
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS
IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ---------- -------------------------------------------------------------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ---------- -------------------------------------------------------------------------------------------------------------------------
7
SOLE VOTING POWER
NUMBER OF
5,648,845(1)
------------- -----------------------------------------------------------------------------------
SHARES 8
BENEFICIALLY SHARED VOTING POWER
OWNED BY
None
------------- -----------------------------------------------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
PERSON
5,648,845(1)
------------- -----------------------------------------------------------------------------------
WITH 10
SHARED DISPOSITIVE POWER
None
- ---------------------------------- ------------- -----------------------------------------------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,648,845(1)
- ---------- -------------------------------------------------------------------------------------------------------------------------
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- ---------- -------------------------------------------------------------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- ---------- -------------------------------------------------------------------------------------------------------------------------
14
TYPE OF REPORTING PERSON*
OO (limited liability company)
- ---------- -------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
- ------------------
(1) Including 4,750,000 shares of Common Stock receivable upon conversion of certain preferred stock (See Item 5).
</TABLE>
<PAGE> 3
<TABLE>
<CAPTION>
SCHEDULE 13D
CUSIP No. 34956K108 PAGE 3 OF 8
<S> <C>
- ----------- ------------------------------------------------------------------------------------------------------------------------
1
NAME OF REPORTING PERSON
SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LF Strategic Realty Investors II L.P.
- ----------- ------------------------------------------------------------------------------------------------------------------------
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b)[X]
- ----------- ------------------------------------------------------------------------------------------------------------------------
3
SEC USE ONLY
- ----------- ------------------------------------------------------------------------------------------------------------------------
4
SOURCE OF FUNDS
AF (See Item 3)
- ----------- ------------------------------------------------------------------------------------------------------------------------
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- ------------------------------------------------------------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ---------------------------------- ------------- -----------------------------------------------------------------------------------
7
SOLE VOTING POWER
NUMBER OF
None
------------- -----------------------------------------------------------------------------------
SHARES 8
BENEFICIALLY SHARED VOTING POWER
OWNED BY
5,648,845(2)
------------- ------------------------------------------------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
PERSON
None
------------- -----------------------------------------------------------------------------------
WITH 10
SHARED DISPOSITIVE POWER
5,648,845(2)
- ---------------------------------- ------------- -----------------------------------------------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,648,845(2)
- ----------- ------------------------------------------------------------------------------------------------------------------------
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- ----------- ------------------------------------------------------------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- ----------- ------------------------------------------------------------------------------------------------------------------------
14
TYPE OF REPORTING PERSON*
PN (limited partnership)
- ----------- ------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
- ------------------
(2) Including 4,750,000 shares of Common Stock receivable upon conversion of certain preferred stock (See Item 5).
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
SCHEDULE 13D
CUSIP No. 34956K108 PAGE 4 OF 8
<S> <C>
- ---------- -------------------------------------------------------------------------------------------------------------------------
1
NAME OF REPORTING PERSON
SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LFSRI II Alternative Partnership L.P.
- ---------- -------------------------------------------------------------------------------------------------------------------------
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) [X]
- ---------- -------------------------------------------------------------------------------------------------------------------------
3
SEC USE ONLY
- ---------- -------------------------------------------------------------------------------------------------------------------------
4
SOURCE OF FUNDS
AF (See Item 3)
- ---------- -------------------------------------------------------------------------------------------------------------------------
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ---------- -------------------------------------------------------------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ---------------------------------- ------------- -----------------------------------------------------------------------------------
7
SOLE VOTING POWER
NUMBER OF
None
------------- -----------------------------------------------------------------------------------
SHARES 8
BENEFICIALLY SHARED VOTING POWER
OWNED BY
5,648,845(3)
------------- -----------------------------------------------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
PERSON
None
------------- -----------------------------------------------------------------------------------
WITH 10
SHARED DISPOSITIVE POWER
5,648,845(3)
- ---------------------------------- ------------- -----------------------------------------------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,648,845(3)
- ---------- -------------------------------------------------------------------------------------------------------------------------
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- ---------- -------------------------------------------------------------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- ---------- -------------------------------------------------------------------------------------------------------------------------
14
TYPE OF REPORTING PERSON*
PN (limited partnership)
- ---------- -------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
- ------------------
(3) Including 4,750,000 shares of Common Stock receivable upon conversion of certain preferred stock (See Item 5).
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
SCHEDULE 13D
CUSIP No. 34956K108 PAGE 5 OF 8
<S> <C>
- ---------- -------------------------------------------------------------------------------------------------------------------------
1
NAME OF REPORTING PERSON
SS. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LFSRI II-CADIM Alternative Partnership L.P.
- ---------- -------------------------------------------------------------------------------------------------------------------------
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
(b) [X]
- ---------- -------------------------------------------------------------------------------------------------------------------------
3
SEC USE ONLY
- ---------- -------------------------------------------------------------------------------------------------------------------------
4
SOURCE OF FUNDS
AF (See Item 3)
- ---------- -------------------------------------------------------------------------------------------------------------------------
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ---------- -------------------------------------------------------------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ---------------------------------- ------------- -----------------------------------------------------------------------------------
7
SOLE VOTING POWER
NUMBER OF
None
------------- -----------------------------------------------------------------------------------
SHARES 8
BENEFICIALLY SHARED VOTING POWER
OWNED BY
5,648,845(4)
------------- -----------------------------------------------------------------------------------
EACH 9
REPORTING SOLE DISPOSITIVE POWER
PERSON
None
------------- -----------------------------------------------------------------------------------
WITH 10
SHARED DISPOSITIVE POWER
5,648,845(4)
- ---------------------------------- ------------- -----------------------------------------------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,648,845(4)
- ---------- -------------------------------------------------------------------------------------------------------------------------
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X]
- ---------- -------------------------------------------------------------------------------------------------------------------------
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- ---------- -------------------------------------------------------------------------------------------------------------------------
14
TYPE OF REPORTING PERSON*
PN (limited partnership)
- ---------- -------------------------------------------------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
- ------------------
(4) Including 4,750,000 shares of Common Stock receivable upon conversion of certain preferred stock (See Item 5).
</TABLE>
<PAGE> 6
PAGE 6 OF 8
This Amendment No. 6, dated June 8, 1999, which supplements and
amends the Schedule 13D, dated August 25, 1997, as previously amended (as so
amended, the "Previous Statement"), of Prometheus Homebuilders LLC
("Prometheus") and its owners LF Strategic Realty Investors II L.P. ("LFSRI
II"), LFSRI II Alternative Partnership L.P. ("Alternative") and LFSRI II-CADIM
Alternative Partnership L.P. ("CADIM" and, together with Prometheus, LFSRI II
and Alternative, the "Reporting Persons") is filed to reflect information
required pursuant to Rule 13d-2 of the General Rules and Regulations under the
Securities Exchange Act of 1934, as amended, relating to the common stock, $0.01
par value per share (the "Common Stock"), of The Fortress Group, Inc., a
Delaware corporation (the "Issuer" or the "Company"). Capitalized terms not
otherwise defined herein have the meaning ascribed to them in the Previous
Statement.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) Prometheus currently owns (i) 28,500 shares of Class AAA
Preferred Stock which it acquired in exchange for Class AA Preferred Stock of
the Issuer pursuant to the Restructuring Agreement described in the Previous
Statement convertible into 4,750,000 shares of Common Stock at a conversion
price of $6.00 per share and (ii) 898,845 shares of Common Stock which it
acquired from certain founders of the Company, representing beneficial ownership
by the Reporting Persons of a total of 5,648,845 shares of Common Stock, or
approximately 33.5% of the approximately 16,886,767 issued and outstanding
shares of the Issuer, based on the number of shares of Common Stock outstanding
as of May 11, 1999, as disclosed in the Company's most recent filing on Form
10-Q, and the conversion of the Class AAA Preferred Stock into Common Stock.
(c) The Issuer redeemed 6,000 shares of Class AAA Preferred Stock
held by Prometheus on June 3, 1999. Prometheus' ownership of Class AAA Preferred
Stock as set forth in clause 5(a) above reflects these redemptions.
<PAGE> 7
PAGE 7 OF 8
SIGNATURE
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.
PROMETHEUS HOMEBUILDERS LLC
By: LF Strategic Realty Investors II L.P.,
as managing member
By: Lazard Freres Real Estate Investors L.L.C.,
as general partner
By: / s / Klaus P. Kretschmann
Name: Klaus P. Kretschmann
Title: Principal
LF STRATEGIC REALTY INVESTORS II L.P.
LFSRI II ALTERNATIVE PARTNERSHIP L.P.
LFSRI II-CADIM ALTERNATIVE PARTNERSHIP L.P.
By: Lazard Freres Real Estate Investors L.L.C.,
as general partner
By: / s / Klaus P. Kretschmann
Name: Klaus P. Kretschmann
Title: Principal
Dated: June 8,1999
<PAGE> 8
Page 8 of 8
SCHEDULE I
Executive Officers of Prometheus and LFREI
The business address for each of the following persons is
c/o Lazard Freres Real Estate Investors LLC ("LFREI"), 30
Rockefeller Plaza, 63rd Floor, New York, NY 10020.
<TABLE>
<CAPTION>
Name of Office Present and Principal Occupation
- -------------- --------------------------------
<S> <C>
Anthony E. Meyer Principal of LFREI
Klaus P. Kretschmann Principal of LFREI
Marjorie L. Reifenberg Principal, General Counsel and Secretary of LFREI
Henry C. Herms Comptroller of LFREI
Douglas Healy Principal of LFREI
John A. Moore Principal and CFO of LFREI
Douglas N. Wells Vice President of LFREI
Gregory Weinberger Vice President of LFREI
Paul Froning Vice President of LFREI
Ellery Roberts Vice President of LFREI
Matthew J. Lustig Chief Executive Officer of LFREI
Mark Ticotin Chief Operating Officer of LFREI
Damon Mezzacappa Chairman of LFREI
</TABLE>
