<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
AFP Imaging Corporation
(Name of Issuer)
Common Stock, par value $0.01
(Title of Class of Securities)
001058106
(CUSIP Number)
Mr. Robert L. Rosen (212) 750-9595
New Ballantrae Partners, L.P. 825 Third Avenue
New York, New York 10022
(Name, address and telephone number of person
authorized to receive notices and communications)
December 16, 1997
(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.)
<Page 1 of 12 Pages>
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13D/A
CUSIP No. 001058106
- ------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. New Ballantrae Partners, L.P.
OF ABOVE PERSON
- ------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(b) /x/
- ------------------------------------------------------------------------------
(3) SEC USE ONLY
- ------------------------------------------------------------------------------
(4) SOURCE OF FUNDS WC
- ------------------------------------------------------------------------------
(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
- ------------------------------------------------------------------------------
NUMBER OF (7) SOLE VOTING POWER - 0 -
SHARES -----------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER - 0 -
OWNED BY -----------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER - 0 -
REPORTING -----------------------------------------------------------
PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 -
- ------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON - 0 -
- ------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES / /
- ------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0%
- ------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON PN
- ------------------------------------------------------------------------------
<Page 2 of 12 Pages>
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13D/A
CUSIP No. 001058106
- ------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. RLR Partners, L.L.C.
OF ABOVE PERSON
- ------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(b) /x/
- ------------------------------------------------------------------------------
(3) SEC USE ONLY
- ------------------------------------------------------------------------------
(4) SOURCE OF FUNDS Not Applicable
- ------------------------------------------------------------------------------
(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
- ------------------------------------------------------------------------------
NUMBER OF (7) SOLE VOTING POWER - 0 -
SHARES ---------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER - 0 -
OWNED BY ---------------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER - 0 -
REPORTING ---------------------------------------------------------------
PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 -
- ------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON - 0 -
- ------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES / /
- ------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0%
- ------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON OO
- ------------------------------------------------------------------------------
<Page 3 of 12 Pages>
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13D/A
CUSIP No. 001058106
- ------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. Robert L. Rosen
OF ABOVE PERSON
- ------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(b) /x/
- ------------------------------------------------------------------------------
(3) SEC USE ONLY
- ------------------------------------------------------------------------------
(4) SOURCE OF FUNDS Not Applicable
- ------------------------------------------------------------------------------
(5) CHECK BOX 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 (7) SOLE VOTING POWER 496,895
SHARES --------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER - 0 -
OWNED BY ---------------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER 496,895
REPORTING ---------------------------------------------------------------
PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 -
- ------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON 496,895
- ------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES / /
- ------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.1%
- ------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON IN
- ------------------------------------------------------------------------------
<Page 4 of 12 Pages>
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13D/A
CUSIP No. 001058106
- ------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. Frank O'Bryan
OF ABOVE PERSON
- ------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(b) /x/
- ------------------------------------------------------------------------------
(3) SEC USE ONLY
- ------------------------------------------------------------------------------
(4) SOURCE OF FUNDS Not Applicable
- ------------------------------------------------------------------------------
(5) CHECK BOX 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 (7) SOLE VOTING POWER 108,874
SHARES ---------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER - 0 -
OWNED BY ---------------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER 108,874
REPORTING ---------------------------------------------------------------
PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 -
- ------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON 108,874
- ------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES / /
- ------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.1%
- ------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON IN
- ------------------------------------------------------------------------------
<Page 5 of 12 Pages>
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13D/A
CUSIP No. 001058106
- ------------------------------------------------------------------------------
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. Steven Roth
OF ABOVE PERSON
- ------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(b) /x/
- ------------------------------------------------------------------------------
(3) SEC USE ONLY
- ------------------------------------------------------------------------------
(4) SOURCE OF FUNDS Not Applicable
- ------------------------------------------------------------------------------
(5) CHECK BOX 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 (7) SOLE VOTING POWER 60,647
SHARE ---------------------------------------------------------------
BENEFICIALLY (8) SHARED VOTING POWER - 0 -
OWNED BY ---------------------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER 60,647
REPORTING ---------------------------------------------------------------
PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 -
- ------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON 60,647
- ------------------------------------------------------------------------------
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES / /
- ------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.6%
- ------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON IN
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<Page 6 of 12 Pages>
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This Amendment No. 2 amends (i) the statement on Schedule 13D with
respect to the common stock, par value $.01 per share (the "Common Stock"), of
AFP Imaging Corporation which was filed on October 23, 1995 by the undersigned
(the "Original Filing") and (ii) Amendment No. 1 to the Original Filing which
was filed on October 20, 1997 by the undersigned ("Amendment No. 1").
Capitalized terms used herein and not otherwise defined in this Amendment No. 2
have the meanings set forth in Amendment No. 1.
Except as specifically provided herein, this Amendment does not modify
any of the information previously reported in Amendment No. 1.
* * *
Item 4. Purpose of Transaction
Item 4 is hereby supplemented as follows:
Pursuant to an amendment to the Letter Agreement dated November 6,
1997, paragraph (e)(i) of the Letter Agreement was amended so that the earliest
possible date on which Ballantrae could convert the Preferred Shares and
distribute such Preferred Shares to Ballantrae's limited partners (the "Limited
Partner Distributees") was changed to "the close of business on November 15,
1997, but not earlier than November 11, 1997." Such amendment to the Letter
Agreement is attached hereto as Exhibit J.
Pursuant to the Letter Agreement and amendment thereto, Ballantrae
converted its Preferred Shares and on December 16, 1997 distributed the
2,132,500 shares of Common Stock received thereby to the Limited Partner
Distributees and the Managing Members.
Item 5. Interest in Securities of the Issuer.
Item 5 is amended and restated as follows:
(a) The aggregate percentage of Common Stock reported by each
Reporting Person herein is based upon 9,766,961 shares of Common Stock
outstanding, which is the total number of shares of Common Stock outstanding as
of October 31, 1997, as reported by the Company in its Form 10-Q for the
quarter ended September 30, 1997, together with the Common Stock received and
distributed by Ballantrae upon conversion of the Preferred Shares.
As of the date hereof:
(i) Ballantrae and RLR currently own no Preferred Shares and no
Common Stock.
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(ii) Mr. O'Bryan beneficially owns 108,874 shares of Common Stock
or 1.1% of the Common Stock outstanding. Mr. Roth beneficially owns
60,647 shares of Common Stock or 0.6% of the Common Stock outstanding.
Mr. Rosen beneficially owns 496,895 shares of Common Stock or 5.1% of
the Common Stock outstanding.
(b) Messrs. O'Bryan, Roth and Rosen each have sole voting power and
power to dispose, or direct the disposition of, their respective shares of
Common Stock.
(c) Other than as set forth herein, there were no transactions in the
Common Stock or the Preferred Shares effected by the Reporting Persons within
the 60-day period prior to the date of this filing.
(d) No person other than each respective owner referred to herein of
Common Stock is known to have the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of, such Common Stock.
(e) Except for Mr. Rosen, the Reporting Persons ceased to be the
beneficial owners of more than 5% of the Common Stock on December 16, 1997.
Item 7 is supplemented as follows:
Item 7. Material to be Filed as Exhibits.
Exhibit I Agreement relating to the filing of joint statements as
required by Rule 13d-1(f)(1) of the Exchange Act.
Exhibit J Amendment to the Letter Agreement, dated November 6, 1997.
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SIGNATURE
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information set forth in this
statement is true, complete and correct.
Dated: December 23, 1997
NEW BALLANTRAE PARTNERS, L.P.
By: RLR PARTNERS, L.L.C.,
its General Partner
By: /s/ Robert L. Rosen
--------------------------
Robert L. Rosen,
Chief Executive Officer
RLR PARTNERS, L.L.C.
By: /s/ Robert L. Rosen
---------------------------------
Robert L. Rosen,
Chief Executive Officer
/s/ Robert L. Rosen
--------------------------------------
Robert L. Rosen, Individually
/s/ Frank O'Bryan
--------------------------------------
Frank O'Bryan, Individually
/s/ Steven Roth
--------------------------------------
Steven Roth, Individually
<Page 9 of 12 Pages>
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Exhibit I
----------
JOINT STATEMENT
PURSUANT TO RULE 13D-1(F)(1)
----------------------------
The undersigned acknowledge and agree that the foregoing statement on Schedule
13D is filed on behalf of each of the undersigned and that all subsequent
amendments to this statement on Schedule 13D shall be filed on behalf of each
of the undersigned without the necessity of filing additional joint acquisition
statements. The undersigned acknowledge that each shall be responsible for the
timely filing of such amendments, and for the completeness and accuracy of the
information concerning it contained therein, but shall not be responsible for
the completeness and accuracy of the information concerning the others, except
to the extent that it knows or has reason to believe that such information is
inaccurate.
DATED: December 23, 1997
NEW BALLANTRAE PARTNERS, L.P.
By: RLR PARTNERS, L.L.C.,
its General Partner
By: /s/ Robert L. Rosen
--------------------------
Robert L. Rosen,
Chief Executive Officer
RLR PARTNERS, L.L.C.
By: /s/ Robert L. Rosen
---------------------------------
Robert L. Rosen,
Chief Executive Officer
/s/ Robert L. Rosen
--------------------------------------
Robert L. Rosen, Individually
/s/ Frank O'Bryan
--------------------------------------
Frank O'Bryan, Individually
/s/ Steven Roth
--------------------------------------
Steven Roth, Individually
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Exhibit J
---------
NEW BALLANTRAE PARTNERS, L.P. ROBERT L. ROSEN
825 Third Avenue 825 Third Avenue
New York, New York 10022 New York, New York 10022
November 6, 1997
AFP IMAGING CORPORATION
250 Clearbrook Road
Elmsford, New York 10533
Mr. David Vozick
250 Clearbrook Road
Elmsford, New York 10533
Mr. Donald Rabinovitch
250 Clearbrook Road
Elmsford, New York 10533
Gentlemen:
The parties hereto confirm the following with respect to that certain
letter agreement dated September 19, 1997, from New Ballantrae Partners, L.P.
and Robert L. Rosen to AFP Imaging Corporation, David Vozick and Donald
Rabinovitch, a copy of which is attached hereto (the "Letter Agreement"):
(1) Paragraph (e)(i) of the Letter Agreement is amended to substitute "the
close of business on November 15, 1997, but not earlier than November 11, 1997"
for "the close of business on October 12, 1997".
(2) The Letter Agreement, as amended by Paragraph (1) above is binding
upon the parties hereto.
Very truly yours,
NEW BALLANTRAE PARTNERS, L.P.
------------------------------
By: RLR Partners, L.L.C.
Its: General Partner
By: Robert L. Rosen
Its: Chief Executive Officer
<Page 11 of 12 Pages>
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-------------------------------
Robert L. Rosen, Individually
Facsimile #____________________
Agreed and Accepted:
AFP IMAGING CORPORATION
By:
--------------------------------
David Vozick, Chairman of the
Board of Directors
--------------------------------
David Vozick, Individually
--------------------------------
Donald Rabinovitch, Individually
<Page 12 of 12 Pages>
