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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. 1)*
Continental Information Systems Corporation
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.01 par value
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(Title of Class of Securities)
211497102
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(CUSIP Number)
Lawrence G. Goodman, Esq.
Shereff, Friedman, Hoffman & Goodman, LLP
919 Third Avenue
New York, New York 10022
(212) 758-9500
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(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
October 28, 1996
-------------------------------------------------------
(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 |_|.
Check the following box if a fee is being paid with the statement |_|. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
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.
*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).
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SCHEDULE 13D
CUSIP No. 211497102 Page 2 of 11 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
GABRIEL CAPITAL, L.P.
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2 CHECK THE APPROPRIATE BOX IF MEMBER OF A GROUP (a) |x|
(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 ITEMS
2(d) or 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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NUMBER OF 7 SOLE VOTING POWER
SHARES
-------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 264,210
-------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 264,210
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
264,210
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.8%
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14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
<PAGE>
SCHEDULE 13D
CUSIP No. 211497102 Page 3 of 11 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ARIEL FUND LIMITED
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2 CHECK THE APPROPRIATE BOX IF MEMBER OF A GROUP (a) |x|
(b) |_|
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3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
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5 CHECK BOX 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
CAYMAN ISLANDS
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NUMBER OF 7 SOLE VOTING POWER
SHARES
-------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 380,669
-------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
-------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 380,669
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
380,669
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.4%
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14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
<PAGE>
SCHEDULE 13D
CUSIP No. 211497102 Page 4 of 11 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ARIEL MANAGEMENT CORP.
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2 CHECK THE APPROPRIATE BOX IF MEMBER OF A GROUP (a) |x|
(b) |_|
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3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
00
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5 CHECK BOX 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
DELAWARE
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NUMBER OF 7 SOLE VOTING POWER
SHARES 42,221
-------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 380,669
-------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 42,221
-------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 380,669
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
422,890
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.0%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
<PAGE>
CUSIP No. 211497102 Page 5 of 11 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
J. EZRA MERKIN
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2 CHECK THE APPROPRIATE BOX IF MEMBER OF A GROUP (a) |x|
(b) |_|
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3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS
00
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5 CHECK BOX 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
UNITED STATES
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NUMBER OF 7 SOLE VOTING POWER
SHARES 42,221
-------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 644,879
-------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 42,221
-------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 644,879
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
687,100
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.8%
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14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION
<PAGE>
SCHEDULE 13D AMENDMENT NO. 1
This Amendment No. 1 to the Statement on Schedule 13D (as defined below) amends
and supplements the Statement on Schedule 13D relating to the event date of
November 1, 1995 (the "Schedule 13D"), filed by Gabriel Capital, L.P., Ariel
Fund Limited, Ariel Management Corp. and J. Ezra Merkin, relating to the common
stock, $.01 par value, (the "Common Stock") of Continental Information Systems
Corporation (the "Issuer"). Capitalized terms used herein and not defined herein
shall have the meanings assigned thereto in the Schedule 13D. The address of the
Issuer is One Northern Concourse, North Syracuse, New York 13212.
Item 3. Source and Amount of Funds
Gabriel purchased an aggregate of 78,977 shares of Common Stock at an
aggregate cost of $146,959.08 using its own funds. Ariel Fund purchased an
aggregate of 116,484 shares of Common Stock at an aggregate cost of $216,751.01
using its own funds. In addition, Ariel caused one of its private discretionary
investment accounts to purchase 12,921 shares of Common Stock at an aggregate
cost of $24,043.09 using the funds of such account. See Item 5 and Schedule I
hereto relating to such purchases and the receipt by the Reporting Persons of
certain stock dividends.
Item 5. Interest in Securities of the Issuer
(a) and (b) Gabriel is the beneficial owner of 264,210 shares of Common
Stock, for a total beneficial ownership of 3.8% of the outstanding shares of
Common Stock.
Ariel Fund is the beneficial owner of 380,669 shares of Common Stock,
for a total beneficial ownership of 5.4% of the outstanding shares of Common
Stock.
Ariel, as Investment Advisor to Ariel Fund, has the power to vote and
to direct the voting of and the power to dispose and direct the disposition of
the 380,669 shares of Common Stock owned by Ariel Fund. In addition, Ariel has
sole dispositive and voting power with respect to 42,221 shares of Common Stock
purchased by a private discretionary investment account. Accordingly, Ariel may
be deemed to be the beneficial owner of 422,890 shares of Common Stock, or 6.0%
of the outstanding shares of Common Stock.
As the General Partner of Gabriel, Merkin has the power to vote and to
direct the voting of and the power to dispose and direct the disposition of the
264,210 shares of Common Stock owned by Gabriel. In addition, as the sole
shareholder and president of Ariel, Merkin may be deemed to have power to vote
and to direct the voting of and the power to dispose and direct the disposition
of the 380,669 shares of Common Stock owned by Ariel Fund and the 42,221 shares
of Common Stock owned by Ariel's private account. Accordingly, Merkin may be
deemed to be the beneficial owner of 687,100 shares of Common
6
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Stock, or 9.8% of the outstanding shares of Common Stock.
The number of shares beneficially owned by each of the Reporting
Persons and the percentage of outstanding shares represented thereby, have been
computed in accordance with Rule 13d-3 under the Securities Exchange Act of
1934, as amended. The ownership of the Reporting Persons is based on 6,999,040
outstanding shares of Common Stock of the Issuer as of September 30, 1996, as
reported in the Issuer's Quarterly Report on Form 10-Q for the quarterly period
ended August 31, 1996.
(c) Schedule I indicates the transactions effected by the Reporting
Persons during the past 60 days. Except as indicated, all such transactions were
effected through the public markets.
(d) Not Applicable
(e) Not Applicable
7
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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.
GABRIEL CAPITAL, L.P.
By: /s/ J. Ezra Merkin
-------------------------------------
Name: J. Ezra Merkin
Title: General Partner
ARIEL FUND LIMITED
By: MEESPIERSON MANAGMENT (CAYMAN)
LIMITED
By: /s/ P.A. De Ruitjer ; R.H. Hanson
-------------------------------------
Name: P.A. De Ruitjer ; R.H. Hanson
Title: Director ; Director
ARIEL MANAGEMENT CORP.
By: /s/ J. Ezra Merkin
-------------------------------------
Name: J. Ezra Merkin
Title: President
/s/ J. Ezra Merkin
-----------------------------------------
J. EZRA MERKIN
Dated: October 31, 1996
8
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SCHEDULE I
Purchases of Shares of Common Stock
<TABLE>
<CAPTION>
Number of Shares
------------------------------------------
Aggregate Aggregate
Date Dollar Price Per Share Ariel Private
Amount Share Amount Fund Gabriel Account
------------ ------ ----- ------ ---- ------- -------
<S> <C> <C> <C> <C> <C> <C>
April 4, 1996* -- -- 4,579 -- 4,579 --
August 14, 1996* -- -- 1,537 -- 1,537 --
October 28, 1996 $274,553.78 $1.79 153,382 85,739 58,132 9,511
</TABLE>
- ----------
* Shares received on this date reflect a distribution from an unsecured
bankruptcy claim.
9
