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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)
(Amendment No. 4)1
GREENBRIAR CORPORATION
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
393648-10-0
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(CUSIP Number)
J.D. Dell
Lone Star Opportunity Fund, L.P.
600 North Pearl Street, Suite 1550
Dallas, Texas 75201
(214) 754-8300
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
November 3, 2000
-----------------------------------
(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), 13d-1(f) or 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(b) for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 21 Pages)
-----------------------------
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 ("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. 393648-10-0 13D Page 2 of 21 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LSOF POOLED EQUITY, 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
-----------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
-----------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) or 2(e)
[ ]
-----------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
-----------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 27,502,855
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
-----------------------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
27,502,855
-----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
27,502,855
-----------------------------------------------------------------------------
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)
79.7%
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14 TYPE OF REPORTING PERSON*
PN
=============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 393648-10-0 13D Page 3 of 21 Pages
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=============================================================================
1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
TERLINGUA ADVISORS, INC.
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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 OF ORGANIZATION
DELAWARE
-----------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 2,200
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
-----------------------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,200
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10 SHARED DISPOSITIVE POWER
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,200
-----------------------------------------------------------------------------
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)
0.03%
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14 TYPE OF REPORTING PERSON*
CO
=============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 393648-10-0 13D Page 4 of 21 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LSOF GENPAR, INC.
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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
-----------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-----------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) or 2(e)
[ ]
-----------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
-----------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 27,502,855
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
-----------------------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
27,502,855
-----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
27,502,855
-----------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
-----------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
79.7%
-----------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
=============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 393648-10-0 13D Page 5 of 21 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LONE STAR OPPORTUNITY FUND, 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
-----------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-----------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) or 2(e)
[ ]
-----------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
-----------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 27,502,855
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
-----------------------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
27,502,855
-----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
27,502,855
-----------------------------------------------------------------------------
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)
79.7%
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14 TYPE OF REPORTING PERSON*
PN
=============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 393648-10-0 13D Page 6 of 21 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LONE STAR PARTNER, 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*
AF
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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 OF ORGANIZATION
DELAWARE
-----------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 27,502,855
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
-----------------------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
27,502,855
-----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
27,502,855
-----------------------------------------------------------------------------
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)
79.7%
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14 TYPE OF REPORTING PERSON*
PN
=============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 393648-10-0 13D Page 7 of 21 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LONE STAR MANAGEMENT CO., LTD.
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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*
AF
-----------------------------------------------------------------------------
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 OF ORGANIZATION
DELAWARE
-----------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 27,502,855
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
-----------------------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
27,502,855
-----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
27,502,855
-----------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
-----------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
79.7%
-----------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
=============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 393648-10-0 13D Page 8 of 21 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
HUDSON ADVISORS, L.L.C.
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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*
AF
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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 OF ORGANIZATION
TEXAS
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NUMBER OF 7 SOLE VOTING POWER
SHARES 27,505,055
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
-----------------------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
27,505,055
-----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
27,505,055*
-----------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
-----------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
79.7%
-----------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
=============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 393648-10-0 13D Page 9 of 21 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JOHN P. GRAYKEN
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
-----------------------------------------------------------------------------
3 SEC USE ONLY
-----------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
-----------------------------------------------------------------------------
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 OF ORGANIZATION
IRELAND
-----------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 27,505,055
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
-----------------------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
27,505,055
-----------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-----------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
27,505,055
-----------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
-----------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
79.7%
-----------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
=============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 393648-10-0 13D Page 10 of 21 Pages
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ITEM 1. SECURITY AND ISSUER.
This statement relates to the common stock, $0.01 par value per share (the
"Common Stock"), of Greenbriar Corporation, a Nevada corporation ("Greenbriar").
The address of the principal executive offices of Greenbriar is 4265 Kellway
Circle, Addison, Texas 75244.
ITEM 2. IDENTITY AND BACKGROUND.
This statement is filed on behalf of LSOF Pooled Equity, L.P., a Delaware
limited partnership ("Pooled Equity"). The general partner of Pooled Equity is
LSOF GenPar, Inc., a Delaware corporation ("GenPar"). The sole stockholder of
GenPar is Lone Star Opportunity Fund, L.P. ("Lone Star"). The general partner of
Lone Star is Lone Star Partner, L.P., a Delaware limited partnership
("Partner"). The general partner of Partner is Lone Star Management Co., Ltd., a
Delaware corporation ("Management"). Hudson Advisors, L.L.C., a Texas limited
liability company ("Hudson"), is the asset manager of the Common Stock, pursuant
to an Asset Management Agreement. Hudson is the sole stockholder of Terlingua
Advisors, Inc., a Delaware corporation ("Terlingua"). John P. Grayken
("Grayken"), a resident of the United Kingdom, is the sole stockholder, sole
director and President of Management and the sole beneficial owner of Hudson.
However, Grayken disclaims beneficial ownership in the Common Stock. GenPar,
Lone Star, Partner, Management and Hudson are herein referred to as "Control
Persons."
The address of the principal offices and business address of Pooled Equity, Lone
Star, Partner and Management is 600 North Pearl Street, Suite 1550, Dallas,
Texas 75201. The address of the principal offices and business address of Hudson
and Terlingua is 600 North Pearl Street, Suite 1500, Dallas, Texas 75201. The
business address of Grayken, is 50 Welbeck Street, London, United Kingdom,
W1M7HE.
Pooled Equity, GenPar, Lone Star, Partner, Management, Hudson and Terlingua are
all part of a private investment partnership investing in a broad range of
primarily real estate related investments. Lone Star's investors are primarily
pension funds and other institutional investors. Grayken's principal occupation
is serving in the aforementioned offices of Management.
None of Pooled Equity, GenPar, Lone Star, Partner, Management, Hudson, Terlingua
or Grayken has, during the last five years, been convicted in a criminal
proceeding (excluding traffic violations and similar misdemeanors).
None of Pooled Equity, GenPar, Lone Star, Partner, Management, Hudson, Terlingua
or Grayken has, during the last five years, been a party to a civil proceeding
of a judicial or administrative body of competent jurisdiction and as a result
of such proceeding was or is 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.
Other Information
-----------------
Attached as Schedule I hereto is a list of the directors and
executive officers of GenPar, Management and Hudson, which contains the
following information with respect to each person:
(i) name;
(ii) principal business address; and
(iii) present principal occupation or employment.
None of the entities or persons identified on Schedule I hereto has,
during the last five years, been convicted in a criminal proceeding (excluding
<PAGE>
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CUSIP No. 393648-10-0 13D Page 11 of 21 Pages
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traffic violations or similar misdemeanors). None of the entities or persons
identified on Schedule I hereto has, during the last five years, been a party to
a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is 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. Each person identified on Schedule I hereto
is a United States citizen.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
On January 13, 1998, Lone Star purchased (i) 1,400,000 shares of Greenbriar's
Series F Senior Convertible Preferred Stock (the "Series F Preferred"), $0.10
par value per share, at a purchase price of $10.00 per share and (ii) 800,000
shares of Greenbriar's Series G Senior Non-Voting Convertible Preferred Stock
$0.10 par value per share (the "Series G Preferred"), at a purchase price of
$10.00 per share. The Series F Preferred and Series G Preferred (collectively,
the "Preferred Stock") were convertible, subject to the terms of the Preferred
Stock, into shares of Common Stock, based on a conversion price of $17.50 per
share of Common Stock. The aggregate purchase price for the Preferred Stock was
$22,000,000 and was funded by capital contributions from Lone Star's partners.
Lone Star assigned the Preferred Stock to LSOF Greenbriar, L.L.C., a Delaware
limited liability and wholly owned subsidiary of Lone Star ("LSOF Greenbriar")
pursuant to an Assignment and Assumption Agreement dated January 13, 1998. On
July 23, 1998, LSOF Greenbriar assigned the Preferred Stock to Pooled Equity.
The terms of the Preferred Stock are set forth in (i) the Stock Purchase
Agreement dated as of December 31, 1997 between Greenbriar and Lone Star filed
as Exhibit 1 hereto (the "Stock Purchase Agreement"), (ii) the Certificate of
Voting Powers, Designations, Preferences and Relative, Participating, Optional
or other Special Rights of Series F Senior Convertible Preferred Stock filed as
Exhibit 2 hereto (the "Series F Certificate of Designation") and (iii) the
Certificate of Voting Powers, Designations, Preferences and Relative,
Participating, Optional or Other Special Rights of Series G Senior Non-Voting
Convertible Preferred Stock filed as Exhibit 3 hereto (the "Series G Certificate
of Designation," and together with the Series F Certificate of Designation, the
"Certificates of Designation").
On February 1, 2000 Greenbriar redeemed 189,381 shares of Series G Preferred
owned directly by Pooled Equity for an aggregate price of $2,500,000, which
equals a price of $13.20 per share. Such redemption was pursuant to a letter
agreement between LSOF Greenbriar and Greenbriar dated January 31, 2000 (the
"First Letter Agreement"), filed as Exhibit 6 hereto, whereby Greenbriar agreed
to use all proceeds, after payment of reasonable out-of-pocket expenses, from
the sale or refinancing of capital assets to redeem shares of Preferred Stock.
On March 1, 2000, LSOF Greenbriar assigned all of its rights in such letter
agreement to Pooled Equity pursuant to an Assignment of Rights filed as Exhibit
8 hereto (the "Assignment of Rights").
On February 4, 2000, Greenbriar redeemed 75,722 shares of Series G Preferred
owned directly by Pooled Equity for an aggregate price of $1,000,000, which
equals a price of $13.20 per share. Such redemption was pursuant to a letter
agreement between LSOF Greenbriar and Greenbriar dated February 4, 2000 filed as
Exhibit 7 hereto. On March 1, 2000, LSOF Greenbriar assigned all of its rights
in such letter agreement to Pooled Equity pursuant to the Assignment of Rights.
On April 14, 2000 Greenbriar redeemed 37,200 shares of Series G Preferred owned
directly by Pooled Equity for an aggregate price of $500,000, which equals a
price of $13.44 per share. Such redemption was pursuant to a letter agreement
between Pooled Equity and Greenbriar dated April 14, 2000 filed as Exhibit 9
hereto.
While conducting due diligence in response to certain discussions with
Greenbriar to modify and/or extend certain provisions of the Certificates of
Designation, Pooled Equity learned and verified through review of Greenbriar's
corporate records that, since the date of issuance of the Series F Preferred and
the Series G Preferred, Greenbriar has issued (the "Option Issuances") various
<PAGE>
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CUSIP No. 393648-10-0 13D Page 12 of 21 Pages
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options (each a "Stock Option") to purchase shares of Common Stock to certain
employees, officers and directors of Greenbriar. Greenbriar never notified
Pooled Equity or any of its affiliates of these issuances, as required by the
Certificates of Designation. These Option Issuances triggered the antidilution
provisions under the Certificates of Designation, which provisions provide that
the conversion price for the Preferred Stock shall be adjusted downward, based
on the exercise prices per share of Common Stock with respect to these Option
Issuances. The lowest exercise price for any Stock Option is $0.69 per share of
Common Stock. Consequently, the conversion price for the Series F Preferred and
the Series G Preferred has been automatically (and without further action on the
part of Greenbriar or Pooled Equity) adjusted downward from $17.50 per share of
Common Stock to $0.69 per share of Common Stock. As a result, each share of
Preferred Stock, which had a liquidation preference of $10.00 per share, has
become convertible into approximately 14.49 shares of Common Stock.
On October 26, 2000, Terlingua purchased 2,200 shares (the "Terlingua Shares")
of Common Stock on the open market for a purchase price of $0.75 per share. The
aggregate purchase price for the Terlingua Shares was $1650.00 and was funded
from working capital of Terlingua.
On October 30, 2000, Pooled Equity delivered to Greenbriar a written Notice of
Conversion (the "Conversion Notice"), filed as Exhibit 10 hereto, whereby Pooled
Equity elected to convert the (i) 1,400,000 shares of Series F Preferred and
(ii) 497,697 shares of Series G Preferred owned by it (a total of 1,897,697
shares of Preferred Stock) into 27,502,855 shares of Common Stock. The
Conversion Notice directed the Company to immediately issue to Pooled Equity the
lesser of (i) 6,955,135 shares of Common Stock and (ii) such number of shares of
Common Stock that would equal 49.8% of the outstanding Common Stock. The
Conversion Notice also directed the Company to issue the remaining shares (the
"Remaining Common Shares") of Common Stock due to Pooled Equity as a result of
the conversion of the Preferred Stock upon written notice from Pooled Equity
that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976 had expired or terminated (or such act was no longer applicable) with
respect the conversion of the Preferred Stock.
On October 31, 2000, Greenbriar notified Pooled Equity that, in Greenbriar's
opinion, the Conversion Notice may be invalid and/or that Pooled Equity may not
have perfected its conversion rights with respect to the Preferred Stock.
While Pooled Equity believes that it has delivered a valid Conversion Notice,
Pooled Equity has proposed to Greenbriar a consensual restructuring of the terms
of Pooled Equity's investment in Greenbriar. Such restructuring may involve the
rescission by Pooled Equity of the Conversion Notice. Greenbriar has advised
Pooled Equity that its board of directors (the "Board of Directors") must
consider any restructuring proposals and will do so at a meeting of the Board of
Directors to be held the week of November 6, 2000. Consequently, at this time,
there can be no assurance that Pooled Equity or Greenbriar will be able to agree
upon the terms of any such consensual restructuring or that the Conversion
Notice will be rescinded.
In response to Greenbriar's allegation that the Conversion Notice may be invalid
and/or that Pooled Equity may not have perfected its conversion rights with
respect to the Preferred Stock, on November 3, 2000, Pooled Equity filed a
petition (the "Petition") in State District Court in Dallas County, Texas
seeking a judgment declaring that the Conversion Notice is valid and effective
as of October 30, 2000 and that it is entitled to convert the Preferred Stock
into Common Stock at a price of $0.69 per share of Common Stock. Additionally,
Pooled Equity seeks a permanent injunction barring Greenbriar from taking any
action that would impair or prejudice Pooled Equity's rights in the Preferred
Stock and Common Stock. As of the time of filing of this Amendment No. 4 to
Schedule 13D, the Court had not acted on Pooled Equity's Petition. A copy of the
Petition is attached hereto as Exhibit 11.
<PAGE>
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CUSIP No. 393648-10-0 13D Page 13 of 21 Pages
-----------------------------------------------------------------------------
ITEM 4. PURPOSE OF THE TRANSACTION.
The transactions described in Item 3 above occurred as a result of privately
negotiated transactions with Greenbriar. In each case, Lone Star acquired the
Preferred Stock and the Common Stock issuable upon conversion thereof and
Terlingua acquired the Terlingua Shares for investment purposes.
Once the Remaining Common Shares are issued to Pooled Equity and Pooled Equity
thereby becomes a majority Stockholder of Greenbriar, Pooled Equity intends to
seek majority representation on the board of directors of Greenbriar as promptly
as is practicable and, through such board representation, influence the
management of Greenbriar. While Pooled Equity does not have any plans for any
extraordinary corporate or sale transactions involving Greenbriar, Pooled Equity
intends to consider strategic alternatives to maximize stockholder value.
Pooled Equity intends to make open market purchases of Common Stock from time to
time.
Other than as described above, none of Pooled Equity or any Control Person has
any present plans or intentions which would result in or relate to any of the
transactions described in subparagraphs (a) through (j) of Item 4 of Schedule
13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Pooled Equity, GenPar, Lone Star, Partner, and Management each beneficially owns
and has the sole power to vote and dispose of 27,502,855 shares of Common Stock
as described above (which, upon conversion of the Preferred Stock, would be
approximately 79.7% of the shares of Common Stock based on the information as to
the number of shares of Common Stock outstanding on August 11, 2000, as reported
in Greenbriar's Quarterly Report on Form 10-Q for the period ended June 30,
2000). Hudson and Grayken each beneficially owns and has the sole power to vote
and dispose of 27,505,055 shares of Common Stock as described above (which, upon
conversion of the Preferred Stock, would be approximately 79.7% of the shares of
Common Stock based on the information as to the number of shares of Common Stock
outstanding on August 11, 2000, as reported Greenbriar's Quarterly Report on
Form 10-Q for the period ended June 30, 2000). Terlingua beneficially owns and
has the sole power to vote and dispose of 2,200 shares of Common Stock as
described above (which, upon conversion of the Preferred Stock, would be
approximately 0.1% of the shares of Common Stock based on the information as to
the number of shares of Common Stock outstanding on August 11, 2000, as reported
Greenbriar's Quarterly Report on Form 10-Q for the period ended June 30, 2000).
Except as described in Item 3, none of Pooled Equity or any Control Person has
effected any transaction in any shares of Common Stock during the past sixty
days.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Certain rights relating to the Preferred Stock granted to Pooled Equity, as an
assignee of Lone Star and LSOF Greenbriar, by Greenbriar are set forth in the
Stock Purchase Agreement. Additional rights relating to the Preferred Stock
granted to Pooled Equity are set forth in the Certificates of Designation.
Certain registration rights granted to Pooled Equity are set forth in a
Registration Rights Agreement dated as of December 31, 1997 filed as Exhibit 4
hereto.
In connection with the purchase of the Preferred Stock, Greenbriar and Lone Star
entered into an Agreement (the "Make-Whole Agreement") filed as Exhibit 5 hereto
which generally provides that Greenbriar is obligated to make a cash payment to
the holder of the Preferred Stock sufficient to provide a 20% annual rate of
return on Lone Star's purchase of the Preferred Stock (including dividends
received by such holder) upon conversion of all of the Preferred Stock into
Common Stock, or in certain other events including, a repurchase of the
Preferred Stock by Greenbriar based upon a breach by Greenbriar of certain
provisions in the Stock Purchase Agreement. Upon the conversion of the Preferred
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CUSIP No. 393648-10-0 13D Page 14 of 21 Pages
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Stock into Common Stock, an estimated payment (as determined by Pooled Equity)
of approximately $11 million became due from Greenbriar to Pooled Equity
pursuant to the Make-Whole Agreement.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Stock Purchase Agreement dated as of December 31, 1997 between
Greenbriar and Lone Star.
2. Certificate of Voting Powers, Designations, Preferences and Relative,
Participating, Optional or Other Special Rights of Series F Senior
Convertible Preferred Stock of Greenbriar Corporation.
3. Certificate of Voting Powers, Designations, Preferences and Relative,
Participating, Optional or Other Special Rights of Series G Senior
Non-Voting Convertible Preferred Stock of Greenbriar Corporation.
4. Registration Rights Agreement dated as of January 13, 1998 between
Greenbriar and Lone Star.
5. Agreement dated as of December 31, 1997 between Greenbriar and Lone
Star.
6. Letter Agreement dated as of January 31, 2000 between LSOF Greenbriar
and Greenbriar.
7. Letter Agreement dated as of February 4, 2000 between LSOF Greenbriar
and Greenbriar.
8. Assignment of Rights dated March 1, 2000 between LSOF Greenbriar and
Pooled Equity.
9. Letter Agreement dated as of April 14, 2000 between Pooled Equity and
Greenbriar.
10. Notice of Conversion dated as of October 30, 2000 from Pooled Equity
to Greenbriar.
11. Pooled Equity's Original Petition (Cause No. 00-08824-I), filed on
November 3, 2000, in State District Court, Dallas County, Texas.
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CUSIP No. 393648-10-0 13D Page 15 of 21 Pages
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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.
Date: November 3, 2000 LSOF POOLED EQUITY, L.P.
By: LSOF GenPar, Inc., its General Partner
By:/s/ J.D. Dell
-------------
J.D. Dell
Vice President
Date: November 3, 2000 LSOF GENPAR, INC.
By:/s/ J.D. Dell
-------------
J.D. Dell
Vice President
Date: November 3, 2000 LONE STAR OPPORTUNITY FUND, L.P.
By: Lone Star Partner, L.P.,
its General Partner
By: Lone Star Management Co., Ltd.,
its: General Partner
By:/s/ J.D. Dell
-------------
J.D. Dell
Vice President
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Date: November 3, 2000 LONE STAR PARTNER, L.P.
By: Lone Star Management Co., Ltd.,
its: General Partner
By:/s/ J.D. Dell
-------------
J.D. Dell
Vice President
Date: November 3, 2000 LONE STAR MANAGEMENT CO., LTD.
By:/s/ J.D. Dell
-------------
J.D. Dell
Vice President
Date: November 3, 2000 HUDSON ADVISORS, L.L.C.
By:/s/ J.D. Dell
-------------
J.D. Dell
Executive Vice President
Date: November 3, 2000 TERLINGUA ADVISORS, INC.
By:/s/ J.D. Dell
-------------
J.D. Dell
Vice President
Date: November 3, 2000 /s/ John P. Grayken
-------------------
John P. Grayken
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EXHIBIT INDEX
99.1 Stock Purchase Agreement dated as of December 31, 1997 between
Greenbriar and Lone Star.*
99.2 Certificate of Voting Powers, Designations, Preferences and Relative,
Participating, Optional or Other Special Rights of Series F Senior
Convertible Preferred Stock of Greenbriar Corporation.*
99.3 Certificate of Voting Powers, Designations, Preferences and Relative,
Participating, Optional or other Special Rights of Series G Senior
Non-Voting Convertible Preferred Stock of Greenbriar Corporation.*
99.4 Registration Rights Agreement dated as of January 13, 1998 between
Greenbriar and Lone Star.*
99.5 Agreement dated as of December 31, 1997 between Greenbriar and Lone
Star.*
99.6 Letter Agreement dated January 31, 2000 between LSOF Greenbriar and
Greenbriar.**
99.7 Letter Agreement dated February 4, 2000 between LSOF Greenbriar and
Greenbriar.**
99.8 Assignment of Rights dated March 1, 2000 between LSOF Greenbriar and
Pooled Equity.**
99.9 Letter Agreement dated April 14, 2000 between Pooled Equity and
Greenbriar.***
99.10 Notice of Conversion dated as of October 30, 2000 from Pooled Equity
to Greenbriar.****
99.11 Pooled Equity's Original Petition (Cause No. 00-08824-I), filed on
November 3, 2000, in State District Court, Dallas County, Texas.
*Incorporated by reference to the Schedule 13D filed on behalf of Lone Star
Opportunity Fund, L.P. on January 22, 1998.
**Incorporated by reference to the Schedule 13D (Amendment No. 1) filed on
behalf of LSOF Pooled Equity, L.P. on April 6, 2000.
***Incorporated by reference to the Schedule 13D (Amendment No. 2) filed on
behalf of LSOF Pooled Equity, L.P. on April 28, 2000.
****Incorporated by reference to the Schedule 13D (Amendment No. 3) filed on
behalf of LSOF Pooled Equity, L.P. on November 2, 2000.
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SCHEDULE I
----------
Instruction C. Information for Officers and Directors of GenPar, Management,
Hudson and Terlingua.
OFFICERS OF GENPAR
Name: J.D. Dell
Present Principal Occupation or
Employment: Vice President
Business Address: LSOF GenPar, Inc.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
Name: Benjamin D. Velvin, III
Present Principal Occupation or
Employment: Vice President and Assistant Secretary
Business Address: LSOF GenPar, Inc.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
Name: Louis Paletta
Present Principal Occupation or
Employment: Vice President
Business Address: LSOF GenPar, Inc.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
Name: Len W. Allen, Jr.
Present Principal Occupation or
Employment: Vice President
Business Address: LSOF GenPar, Inc.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
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OFFICERS OF MANAGEMENT
Name: J.D. Dell
Present Principal Occupation or
Employment: Vice President
Business Address: Lone Star Management Co., Ltd.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
Name: Louis Paletta
Present Principal Occupation or
Employment: Vice President
Business Address: Lone Star Management Co., Ltd.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
Name: Benjamin D. Velvin, III
Present Principal Occupation or
Employment: Vice President and Assistant Secretary
Business Address: Lone Star Management Co., Ltd.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
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OFFICERS OF HUDSON
Name: Robert J. Corcoran
Present Principal Occupation or
Employment: President and Chief Financial Officer
Business Address: Hudson Advisors, L.L.C.
600 North Pearl Street
Suite 1500
Dallas, Texas 75201
Name: J.D. Dell
Present Principal Occupation or
Employment: Executive Vice President
Business Address: Hudson Advisors, L.L.C.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
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DIRECTORS & OFFICERS OF TERLINGUA
Name: Robert J. Corcoran
Present Principal Occupation or
Employment: Director and President
Business Address: Terlingua Advisors, Inc.
600 North Pearl Street
Suite 1500
Dallas, Texas 75201
Name: J.D. Dell
Present Principal Occupation or
Employment: Director and Vice President
Business Address: Terlingua Advisors, Inc.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
Name: Steven R. Shearer
Present Principal Occupation or
Employment: Vice President
Business Address: Terlingua Advisors, Inc.
600 North Pearl Street
Suite 1500
Dallas, Texas 75201
Name: Len W. Allen, Jr.
Present Principal Occupation or
Employment: Vice President
Business Address: Terlingua Advisors, Inc.
600 North Pearl Street
Suite 1550
Dallas, Texas 75201
