<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)*
THE ELDER-BEERMAN CORP.
- -------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, no par value per share
- -------------------------------------------------------------------------------
(Title of Class of Securities)
284470101
- -------------------------------------------------------------------------------
(CUSIP Number)
Stuart J. Lissner, Managing Director, PPM America, Inc.
225 West Wacker Drive, Suite 1200, Chicago, IL 60606 (312) 634-2501
- -------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
March 6, 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.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 or otherwise subject to the liabilities of that section of the Act but
shall be subject to all other provisions of the Act (however, see the Notes).
<PAGE>
SCHEDULE 13D
- -------------------------------------------------------------------------------
CUSIP No. 284470101 Page 2 of 10 Pages
- -------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PPM America Special Investments Fund, L.P.
36-408-6849
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) x
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------
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, USA
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
None
- -------------------------------------------------------------------------------
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
- -------------------------------------------------------------------------------
8 SHARED VOTING POWER
1,231,244
- -------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
- -------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,231,244
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,231,244
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.25%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- -------------------------------------------------------------------------------
CUSIP No. 284470101 Page 3 of 10 Pages
- -------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PPM America Fund Management GP. Inc.
36-408-6845
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) x
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------
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, USA
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
None
- -------------------------------------------------------------------------------
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
- -------------------------------------------------------------------------------
8 SHARED VOTING POWER
1,231,244/1/
- -------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
- -------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,231,244/1/
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,231,244/1/
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.25%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- -------------------------------------------------------------------------------
- --------------------
/1/ All of the securities covered by this report are owned legally by PPM
America Special Investments Fund, L.P. ("SIF I"), and none are owned directly or
indirectly by PPM America Fund Management GP, Inc. ("SIF I GP"). SIF I GP is the
general partner of SIF I. As permitted by Rule 13d-4, the filing of this
statement shall not be construed as an admission that SIF I GP is the beneficial
owner of any of the securities covered by this statement.
<PAGE>
SCHEDULE 13D
- -------------------------------------------------------------------------------
CUSIP No. 284470101 Page 4 of 10 Pages
- -------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PPM America Special Investments CBO II, L.P.
98-017-9401
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) x
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------
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, USA
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
None
- -------------------------------------------------------------------------------
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
- -------------------------------------------------------------------------------
8 SHARED VOTING POWER
735,624
- -------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
- -------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
735,624
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
735,624
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.93%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
- -------------------------------------------------------------------------------
CUSIP No. 284470101 Page 5 of 10 Pages
- -------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PPM America CBO II Management Company
98-017-9391
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) x
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------
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, USA
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
None
- -------------------------------------------------------------------------------
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
- -------------------------------------------------------------------------------
8 SHARED VOTING POWER
735,624/2/
- -------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
- -------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
735,624/2/
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
735,624/2/
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.93%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- -------------------------------------------------------------------------------
- --------------------
/2/ All of the securities covered by this report are owned legally by PPM
America Special Investments CBO II, L.P. ("CBO II"), and none are owned directly
or indirectly by PPM America CBO II Management Company ("CBO II GP"). CBO II GP
is the general partner of CBO II. As permitted by Rule 13d-4, the filing of this
statement shall not be construed as an admission that CBO II GP is the
beneficial owner of any of the securities covered by this statement.
<PAGE>
SCHEDULE 13D
- -------------------------------------------------------------------------------
CUSIP No. 284470101 Page 6 of 10 Pages
- -------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PPM America, Inc.
36-371-4794
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)
(b) x
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- -------------------------------------------------------------------------------
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, USA
- -------------------------------------------------------------------------------
7 SOLE VOTING POWER
None
- -------------------------------------------------------------------------------
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
- -------------------------------------------------------------------------------
8 SHARED VOTING POWER
1,966,868/3/
- -------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
- -------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,966,868/3/
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,966,868/3/
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.18%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA
- -------------------------------------------------------------------------------
- --------------------
/3/ All of the securities covered by this report are owned legally by SIF I or
CBO II, and none are owned directly or indirectly by PPM America, Inc. PPM
America, Inc. is the investment manager/adviser of both SIF I GP and CBO II GP.
As permitted by Rule 13d-4, the filing of this statement shall not be construed
as an admission that PPM America, Inc. is the beneficial owner of any of the
securities covered by this statement.
<PAGE>
Item 2. Identity and Background.
-----------------------
Schedule I contains certain revised information concerning the parent companies
of SIF I GP, PPM MGP and PPM America.
Item 4. Purpose of Transaction.
----------------------
The shares beneficially owned by PPM were acquired for investment
purposes. PPM may acquire additional shares, dispose of some or all of the
shares from time to time, in each case in open market transactions, block sales
or purchases or otherwise, or may continue to hold shares.
PPM believes that the Company's current policies and method of doing
business reflect a lack of concern for maximizing the value of the Company for
the benefit of its shareholders. PPM believes that this is starkly evidenced by
the fact that the aggregate market value of the Company's Common Stock is only
about 35% of the Company's book value. PPM accordingly has concluded that the
market valuation of the Company should be at least three times greater than it
is.
PPM believes that the Company's management and board of directors
have a fiduciary duty to take prompt and effective action to substantially
increase shareholder value. By letter dated February 22, 2000, counsel to PPM on
behalf of PPM advised the Company that it should either: (i) put the Company up
for sale to the highest bidder; or (ii) conduct a Dutch auction for its shares
for the equivalent of at least $17 million or the full amount of cash remaining
under the Company's share repurchase plan. A copy of this letter is attached as
Exhibit A.
Although PPM is aware from the filings of other significant
stockholders of the Company, made with the Securities and Exchange Commission on
Form 13D, that such other stockholders may also be disenchanted or unhappy with
the state of affairs at the Company at this time, PPM intends to avoid taking
any action, including but not limited to entering into agreements or
understandings with other stockholders of the Company, which would make PPM part
of a larger group of stockholders.
Nevertheless, subject to and in light of the foregoing, and if the
Company does not provide a concrete and constructive response to the need to
maximize shareholder value, PPM may take unilateral action to implement its goal
of enhancing shareholder value, which may include but not be limited to: (i)
influencing the management and board of the Company in order to enhance
shareholder value; (ii) soliciting proxies for the election of directors
acceptable to PPM at the Company's next annual meeting; (iii) soliciting bids
for the sale of the Company or otherwise causing the Company to become privately
owned; or (iv) pursuing claims against the Company's management and directors
for breach of fiduciary duty, waste, self dealing and other injury.
On February 24, 2000, PPM filed Amendment No. 1 to its Schedule 13D
for the Company which included as an exhibit its February 22 letter to the
Company, which is hereby incorporated by reference. In that letter PPM had
advised, among other things, that PPM had determined that the Company has a duty
to take prompt action to enhance shareholder value and that PPM required a
"concrete" response from the Company by February 28, 1999.
<PAGE>
Later on February 24, a representative of the firm of Wasserstein
Perrella & Co. ("Wasserstein") contacted counsel to PPM and invited PPM to a
meeting to be held at the offices of the Company's counsel in Chicago on
February 28, 2000. PPM was also advised that the Company would be issuing a
press release the morning of the meeting and that the contents of the press
release would be discussed at the meeting. The Wasserstein representative
declined to indicate what the subject matter of the press release would be.
PPM responded that it would be happy to attend such a meeting but that
it did not want to be advised of non-public information at the meeting that
would restrict PPM from trading in the Company's securities for more than a
limited period of time. The Wasserstein representative later replied that the
Company would not agree to conduct the meeting in that manner and that PPM could
make its own determination as to whether or not, or at what point, PPM should
leave the meeting in order to avoid becoming restricted from trading. PPM
declined to attend the meeting on that basis.
The press release issued by the Company on February 28, 2000 indicated
that the Company had retained Wasserstein to "explore alternatives that could
include the sale of the company". It is PPM's understanding, however, that
Wasserstein has been working with the Company since early 1998. PPM accordingly
believes that the Company's press release was misleading, disingenuous and did
not constitute a "concrete" response to PPM's February 22 letter to the Company.
Moreover, given that the Company has experienced over a 50% drop in its share
price during Wasserstein's tenure in that its stock price has fallen from $11-
9/16 per share on December 31, 1998 to close on March 2, 2000 at a price of $5-
11/16 per share, PPM has no confidence at all that Wasserstein will help enhance
the Company's shareholder value.
In PPM's initial 13D filing almost six months ago, PPM stated that the
Company should take three actions which PPM believed would enhance shareholder
value: (i) install two additional independent directors; (ii) amend the
Company's Articles of Incorporation and Code of Regulations to eliminate "super-
majority" voting requirements; and (iii) separate the role of the Chairman of
the Board from the role of the Chief Executive Officer. While the Company did
install two additional directors to its board of directors, the incumbent
directors significantly outnumber these new directors and PPM accordingly
believes that this disparity in numbers effectively neuters the new directors'
ability to be agents of change. Beyond that, PPM believes that the Company has
failed to satisfy any of the requests of its largest shareholders. In PPM's
Amendment No. 1 to its Schedule 13D, PPM stated that the Company must either put
itself up for sale to the highest bidder or conduct a Dutch auction for its
shares, which it could effectuate immediately under its existing stock buyback
program. So far, the Company's only response has been to announce the two year
old news that it is working with Wasserstein.
PPM will continue to insist that the Company comply with PPM's as yet
unmet requests. PPM believes that the Company must respond to PPM's requests no
later than March 17, 2000. PPM intends to file a further amendment to its
Schedule 13D on or about March 20, 2000 to state whether or not the Company has
responded to PPM's requests in a satisfactory manner and to specify further
action which PPM is prepared to take.
Item 7. Material to be Filed as Exhibits.
--------------------------------
1. Schedule I
<PAGE>
Signature
After reasonable inquiry and to the best of its knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Date: March 6, 2000
PPM America, Inc.
By: /s/ Stuart J. Lissner
---------------------
Name: Stuart J. Lissner
Title: Managing Director
PPM America Special Investments Fund, L.P.
By: PPM America Fund Management GP, Inc.
its managing general partner
By: /s/ Stuart J. Lissner
---------------------
Name: Stuart J. Lissner
Title: Managing Director
PPM America Fund Management GP, Inc.
By: /s/ Stuart J. Lissner
---------------------
Name: Stuart J. Lissner
Title: Managing Director
<PAGE>
PPM America Special Investments CBO II, L.P.
By: PPM America CBO II Management
Company, its General Partner
By: PPM MGP (BERMUDA), LTD.
As Managing General Partner
of the General Partner
By: /s/ Stuart J. Lissner
---------------------
Name: Stuart J. Lissner
Title: Vice President
PPM America CBO II Management Company
By: PPM MGP (BERMUDA), LTD.
its Managing General Partner
By: /s/ Stuart J. Lissner
---------------------
Name: Stuart J. Lissner
Title: Vice President
<PAGE>
SCHEDULE I
CERTAIN INFORMATION CONCERNING THE PARENT COMPANIES OF PPM
SIF I GP, PPM MGP and PPM America are all 100% owned by PPM
Holdings, Inc., a Delaware corporation ("Holdings"). The address of the
principal executive offices of Holdings is 225 West Wacker Drive, Suite 1200,
Chicago, IL 60606. Holding's directors and officers are as follows:
Directors: Officers:
Russell W. Swansen Russell W. Swansen (President)
F. John Stark, III F. John Stark, III (Secretary)
Mark B. Mandich Mark B. Mandich (Treasurer)
All of the directors and officers of Holdings are United States citizens.
To the knowledge of PPM, no disclosure under Item 2(d) or 2(e) is required with
respect to Holdings.
Holdings' sole stockholder is Holborn Delaware Partnership
("Holborn"). The partners of Holborn are Prudential One Limited ("POL") (80%
Partnership Interest), Prudential Two Limited (10% Partnership Interest) and
Prudential Three Limited (10% Partnership Interest). The sole stockholder of POL
is Prudential Corporation Holdings Limited ("Prudential Holdings").
To the knowledge of PPM, no disclosure under Item 2(d) or 2(e) is required with
respect to POL or Prudential Holdings.
Prudential plc, a UK public limited company ("Prudential"), is the
sole shareholder of Prudential Holdings and the ultimate parent of PPM. The
address of the principal executive offices of Prudential is Laurence Pountney
Hill, London EC4R OEU. Prudential's directors and (officers) are as follows:
Sir Martin Jacomb (Chairman)
Sir Roger Hurn (Chairman Designate)
M. D. Abrahams (Deputy Chairman)
J. W. Bloomer (Chief Executive)
P. M. Maynard (Secretary)
Sir David Barnes
K. L. Bedell-Pearce
J. A. Burdus
L. G. Cullen
D.A. Higgs
B. A. Macaskill
R. O. Rowley
A. D. Stewart
M. E. Tucker
To the knowledge of PPM, no disclosure under Item 2(d) or 2(e) is required with
respect to Prudential.
