<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)*
REGENCY HEALTH SERVICES, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE PER SHARE
- --------------------------------------------------------------------------------
(Title of Class of Securities)
758934-10-3
---------------------------------------
(CUSIP Number)
Henry K. Jordan With a copy to:
Chief Financial Officer Mark A. Bonenfant, Esq.
The Foothill Group, Inc. Buchalter, Nemer, Fields & Younger
11111 Santa Monica Blvd., Suite 1500 601 South Figueroa Street, Suite 2400
Los Angeles, California 90025 Los Angeles, California 90017
(310) 966-7000 (213) 891-5020
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
June 13, 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.)
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).
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 2 of 15 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Foothill Group, Inc.
94-1663353
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS
2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0- (See Item 5)
---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 816,662 (See Item 5)
---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0- (See Item 5)
---------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
816,662 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
816,662
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.14%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO, HC
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 3 of 15 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Foothill Capital Corporation
95-2689288
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS
2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0-
---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 458,468 (See Item 5)
---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0-
---------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
458,468 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
458,468 (See Item 5)
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.89%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 4 of 15 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Foothill Partners, L.P., a Delaware Limited Partnership
95-4291521
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS
2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0- (See Item 5)
---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 358,194 (See Item 5)
---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0- (See Item 5)
---------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
358,194 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
358,194
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.26%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 5 of 15 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Condor Investments Limited Partnership
95-411830945
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS
2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Minnesota
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES -0- (See Item 5)
---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 458,468 (See Item 5)
---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING -0- (See Item 5)
---------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
458,468 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
458,468
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.89%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 6 of 15 Pages
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
John F. Nickoll
###-##-####
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS
2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 50,789 (See Item 5)
---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 358,194 (See Item 5)
---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 50,789(See Item 5)
---------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
358,194 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
408,983
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.58%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 7 of 15 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Dennis R. Ascher
###-##-####
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS
2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 1,010 (See Item 5)
---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 358,194 (See Item 5)
---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1,010 (See Item 5)
---------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
358,194 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
359,204
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.26%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 8 of 15 Pages
- --------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Jeffrey T. Nikora
###-##-####
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS
2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 58 (See Item 5)
---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 358,194 (See Item 5)
---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 58 (See Item 5)
---------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
358,194 (See Item 5)
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
358,252
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.26%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 9 of 15 Pages
Introduction
The reporting persons named in Item 2 below are hereby jointly filing this
statement on Schedule 13D because they may be deemed a "group" within the
meaning of Rule 13d-5(b)(1) promulgated by the Securities and Exchange
Commission (the "SEC") pursuant to the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), by virtue of their affiliated status and/or action
in concert with respect to the acquisition of shares of Common Stock (as
hereinafter defined in Item 1 below). Each of the reporting persons named in
Item 2 disclaims beneficial ownership of the Common Stock held on behalf of the
other reporting persons.
Item 1. Security and Issuer.
This Schedule 13D relates to the common stock, $.01 par value per
share, CUSIP No. 758934-10-3 (the "Common Stock"), of Regency Health Services,
Inc., a Delaware corporation ("Issuer"), having its principal executive offices
at 2742 Dow Avenue, Tustin, CA 92680.
Item 2. Identity and Background.
This Schedule 13D is filed on behalf of The Foothill Group, Inc., a
Delaware corporation ("Group"), Foothill Capital Corporation, a California
corporation ("Capital"), Foothill Partners, L.P., a Delaware limited partnership
("Partners"), Condor Investments Limited Partnership, a Minnesota limited
partnership ("Condor"), John F. Nickoll, Dennis R. Ascher and Jeffrey T. Nikora
(collectively, the "Managing General Partners"). (Group, Capital, Partners,
Condor and the Managing General Partners are collectively referred to
hereinafter as the "Filing Persons"). Group and the Managing General Partners
are the general partners of Partners. Capital is a wholly-owned subsidiary of
Group. Group and Capital are the general partners of Condor.
Under the definition of "beneficial owner" ("Beneficial Owner
Definition") provided in Rule 13d-3 of the Exchange Act: (i) Group and the
Managing General Partners may be deemed to beneficially own the shares of Common
Stock owned by Partners by virtue of the fact that Group and the Managing
General Partners, as the general partners of Partners, share with Partners the
voting and dispositive power with respect to shares of Common Stock held or
acquired by Partners, and (ii) Group and Capital may be deemed to beneficially
own the shares of Common Stock owned by Condor, by virtue of the fact that Group
and Capital, as the general partners of Condor, share with Condor the voting and
dispositive power with respect to shares of Common Stock held or acquired by
Condor.
Group has its principal business address and its principal business
office at 11111 Santa Monica Boulevard, Suite 1500, Los Angeles, California
90025. The principal business of Group is that of a financial services holding
company.
Capital has its principal business address and principal business
office at 11111 Santa Monica Boulevard, Suite 1600, Los Angeles, California
90025. The principal business of Capital is to engage in providing asset-based
financing to businesses.
Partners has its principal business address and its principal business
office at 11111 Santa Monica Boulevard, Suite 1500, Los Angeles, California
90025. The principal business of Partners is to engage in the business of
investment in various financial assets.
Each of the Managing General Partners has his principal business
address and his principal business office at 11111 Santa Monica Boulevard,
Suite 1500, Los Angeles, California 90025. Each of the Managing General
Partners is an employee of Group.
Condor has its principal business address and its principal business
office at Norwest Center, Sixth Street and Marquette Avenue, Minneapolis,
Minnesota 55479. The principal business of Condor is to engage in the business
of investment in various financial assets.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 10 of 15 Pages
The names of the directors and executive officers of Group and
Capital, their business addresses, their present principal occupations and the
principal addresses of their respective employers are as follows:
THE FOOTHILL GROUP, INC.
<TABLE>
<CAPTION>
Principal
Name Business Address Occupation
- ---- ---------------- ----------
<S> <C> <C>
John F. Nickoll 11111 Santa Monica Blvd. Chief Executive Officer
Suite 1500 and Chairman of the Board
Los Angeles, CA 90025
David C. Hilton 11111 Santa Monica Blvd. Executive Vice President,
Suite 1500 Director
Los Angeles, CA 90025
Peter E. Schwab 11111 Santa Monica Blvd. Executive Vice President,
Suite 1500 Director
Los Angeles, CA 90025
Henry K. Jordan 11111 Santa Monica Blvd. Senior Vice President,
Suite 1500 Chief Financial Officer
Los Angeles, CA 90025
Kevin Gary 11111 Santa Monica Blvd. Senior Vice President,
Suite 1500 Controller, and Corporate
Los Angeles, CA 90025 Secretary
James R. Campbell Norwest Corporation Executive Vice President
Norwest Center Norwest Corporation
Sixth Street and Marquette Avenue
Minneapolis, MN 55479
William H. Queenan Norwest Corporation Executive Vice President
Norwest Center Norwest Corporation
Sixth Street and Marquette Avenue
Minneapolis, MN 55479
John T. Thornton Norwest Corporation Executive Vice President
Norwest Center Norwest Corporation
Sixth Street and Marquette Avenue
Minneapolis, MN 55479
Richard C. Westergaad Norwest Corporation Executive Vice President
Norwest Center Norwest Bank
Sixth Street and Marquette Avenue
Minneapolis, MN 55479
</TABLE>
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 11 of 15 Pages
FOOTHILL CAPITAL CORPORATION
Principal
Name Business Address Occupation
- ---- ---------------- ----------
John F. Nickoll 11111 Santa Monica Blvd. Chairman of the
Suite 1500 Board and Director
Los Angeles, CA 90025
Peter E. Schwab 11111 Santa Monica Blvd. President, Chief
Suite 1500 Operating Officer
Los Angeles, CA 90025 and Director
David C. Hilton 11111 Santa Monica Blvd. Senior Executive
Suite 1500 Vice President,
Los Angeles, CA 90025 Chief Credit Officer
Henry K. Jordan 11111 Santa Monica Blvd. Executive Vice
Suite 1500 President and Chief
Los Angeles, CA 90025 Financial Officer
Scott R. Diehl 11111 Santa Monica Blvd. Executive Vice
Suite 1500 President
Los Angeles, CA 90025
Phillip W. Hughes 11111 Santa Monica Blvd. Executive Vice
Suite 1500 President
Los Angeles, CA 90025
Barry A. Grossman 11111 Santa Monica Blvd. Executive Vice
Suite 1500 President
Los Angeles, CA 90025
Ellyn M. Norwood 11111 Santa Monica Blvd. Executive Vice
Suite 1500 President
Los Angeles, CA 90025
Mark Rosenbaum 11111 Santa Monica Blvd. Executive Vice
Suite 1500 President
Los Angeles, CA 90025
During the last five years, to the knowledge of the Filing Persons,
neither any of the Filing Persons nor any of the above-named directors or
executive officers of Group or Capital have been convicted in a criminal
proceeding (excluding traffic violations and similar misdemeanors) or was 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. To the knowledge of the Filing Persons,
all of Group's and Capital's directors and executive officers are citizens of
the United States.
Item 3. Source and Amount of Funds or Other Consideration.
All shares of Issuer's Common Stock held by Partners were purchased
with funds from working capital of Partners. On February 22, 1996 (i) Group
contributed 291,611 shares of Issuer's Common Stock to Condor as a capital
contribution and (ii) Capital contributed 292,745 shares of Issuer's Common
Stock to Condor as a capital contribution. Group and Capital had acquired these
shares from its working capital.
Item 4. Purpose of Transaction.
Condor and Partners acquired and disposed of their shares of Common
Stock for investment purposes pursuant to purchases and sales on the open
market.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 12 of 15 Pages
None of the Filing Persons presently has any plans or proposals which
relate to or would result in:
(a) The acquisition of additional securities, or disposition of
securities, of the Issuer;
(b) An extraordinary Corporate transaction, such as a merger,
reorganization or liquidation, including the Issuer or any of its subsidiaries;
(c) The sale or transfer of a material amount of assets of the Issuer
or any of its subsidiaries;
(d) Any change in the present board of directors or management of the
Issuer, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board;
(e) Any material change in the in the present capitalization or
dividend policy of the Issuer;
(f) Any other material change in the Issuer's business or corporate
structure;
(g) Changes in the Issuer's charter, bylaws or instruments
corresponding thereto or any actions which may impede the acquisition of control
of the Issuer by any person;
(h) Causing any class of securities of the Issuer to be delisted from
a national securities exchange or to cease to be authorized to be quoted in an
inter-dealer quotation of a registered national securities association;
(i) A class of equity securities of the Issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Act; or
(j) Any similar action to any of those enumerated above.
Each of the Filing Persons intends to continually review the Issuer's
business affairs and financial position, as well as conditions in the securities
markets and general economic and industry conditions. Based on such evaluation
and review, each of the Filing Persons will continue to consider various
alternative courses of action and will in the future take such actions with
respect to the Issuer as it deems appropriate in light of the circumstances
existing from time to time. Such actions may include, but are not limited to,
purchasing additional shares of Common Stock, or debt securities of the Issuer,
either in the open market or in privately negotiated transactions, or selling
its shares of Common Stock, either in the open market or in privately negotiated
transactions. The foregoing actions may be taken by each of the Filing Persons
alone or with other persons.
Item 5. Interest in Securities of the Issuer.
(a) The percentages of outstanding Common Stock reported in this Item
5(a) are based on the assumption that there are 15,874,414 shares of Common
Stock outstanding, which is the number of outstanding shares set forth on the
Issuer's Form 10-Q for the quarterly period ended March 31, 1997.
As of the date of its execution hereof, Partners was the direct owner
of 358,194 shares, or 2.26%, of Common Stock.
As of the date of its execution hereof, Condor was the direct owner of
458,468 shares, or 2.89% of Common Stock.
Under the Beneficial Ownership Definition, Group may be deemed
beneficially to own the shares of Common Stock owned directly by Partners and
Condor. Accordingly, Group owns directly or beneficially 816,662 shares, or
5.14% of Common Stock.
Under the Beneficial Ownership Definition, Capital may be deemed to
beneficially own the shares of Common Stock owned directly by Condor.
Accordingly, Capital owns directly or beneficially 458,468 shares, or 2.89% of
Common Stock.
As of the date of their execution hereof, each of the Managing General
Partners is the direct owner of -0- shares of Common Stock, except for
Mr. Nickoll, who is the direct owner of 32,789 shares of Common Stock and
options to acquire 18,000
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 13 of 15 Pages
shares of Common Stock, which options are presently exercisable, or .32%, of
Common Stock, Mr. Ascher, who is the direct owner of 1,010 shares, or .006%, of
Common Stock, and Mr. Nikora, who is the direct owner of 58 shares, or .00004%,
of Common Stock. Under the Beneficial Ownership Definition, each of the
Managing General Partners is deemed beneficially to own the shares of Common
Stock owned by Partners. Accordingly, each of the Managing General Partners
other than Mr. Ascher, Mr. Nikora and Mr. Nickoll is deemed beneficially to own
358,194 shares, or 2.26%, of Common Stock; Mr. Nickoll is deemed beneficially to
own 408,983 shares, or 2.58%, of Common Stock, Mr. Ascher is deemed beneficially
to own 359,204 shares, or 2.26%, of Common Stock, and Mr. Nikora is deemed
beneficially to own 358,252 shares, or 2.26%, of Common Stock.
(b) Condor has sole voting and sole dispositive power with respect to
the 458,468 shares of Common Stock directly owned by it. Group and Capital may
each be deemed to have shared voting and dispositive power with Condor, with
respect to the 458,468 shares directly owned by Condor, by virtue of the fact
that Group and Capital are the general partners of Condor with the power to vote
and direct the disposition of the 458,468 shares of Common Stock directly held
by Condor. Each of Group and the Managing General Partners has shared power
with Partners, in its capacity as a general partner of Partners, to vote and
direct the disposition of the 358,194 shares of Common Stock directly owned by
Partners.
(c) On dates indicated below Condor and Partners sold the number of
shares indicated:
Shares sold by Shares sold by
Condor Partners Price
-------------- -------------- -----
5/13/97 12,096 9,504 $11.00
5/14/97 4,592 3,608 $11.00
5/15/97 14,000 11,000 $11.125
5/16/97 560 440 $11.625
5/21/97 11,200 8,800 $11.750
5/21/97 14,000 11,000 $11.625
5/22/97 2,240 1,760 $12.125
6/10/97 1,120 880 $13.25
6/10/97 1,680 1,320 $13.125
6/13/97 29,400 23,100 $13.125
(d) not applicable.
(e) not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of The Issuer.
Group and the Managing General Partners are the general partners of
Partners under an Amended and Restated Limited Partnership Agreement, dated as
of October 10, 1990, as amended (the "Partners Agreement"). The Partners
Agreement provides for the formation of Partners as a partnership to invest the
funds of Partners in secured or unsecured notes, debentures, trust receipts and
other debt instruments, all of which by their terms at the time of issuance must
be senior in right of payment to all other debt obligations of the issuer and
all rights and options relating to any of the foregoing which can be purchased
at a discount to claim amount, and to engage in all activities reasonably
necessary and incidental to the foregoing. The general partners of Partners
have the exclusive right and power to manage the business and affairs of
Partners including the power to purchase and dispose of the Common Stock owned
by Partners as well as securities of the type described above. The general
partners of Partners have certain rights to receive the proceeds of the sales of
the securities, including the Common Stock, if any, in accordance with the
Partners Agreement.
Pursuant to Section 9.7(b) of the Partners Agreement, and as
acknowledged in a letter dated October 10, 1990, Capital has an obligation to
co-invest with Partners by purchasing 33% of prospective portfolio securities
purchased by Partners. In addition, Capital is obligated to dispose of a
pro-rata amount of such securities at the same time, in the same manner and at
the same price as Partners, and Capital may not dispose of such securities prior
to Partners. Group may fulfill the obligations of Capital described above under
certain circumstances.
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 14 of 15 Pages
Group and Capital are the general partners of Condor under a limited
partnership agreement of Condor Investments Limited Partnership dated
February 22, 1996. The purpose of Condor is to engage in any lawful act or
activities for which a limited partnership may be formed under the laws of the
state of Minnesota. The general partners of Condor have the exclusive right and
power to manage the business and affairs of Condor including the power to
purchase and dispose of the Common Stock owned by Condor as well as securities
of the type described above.
Group, Capital, Partners and the Managing General Partners have
executed a joint reporting agreement (the "Joint Reporting Agreement") dated
April 13, 1994, which was filed April 14, 1994, with the Schedule 13D on behalf
of the Filing Persons pursuant to which they have agreed to file one joint
statement on behalf of all of them with respect to the subject matter of the
Schedule 13D and any amendments thereto. This Agreement was amended by
amendment No.1 dated March 24, 1997 to include Condor.
Item 7. Material to be Filed as Exhibits.
None.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and believe,
I certify that the information set forth in this statement is true, complete and
correct.
Dated: July 9, 1997
THE FOOTHILL GROUP, INC.
By: /s/ Dennis R. Ascher
---------------------------------------------
Name: Dennis R. Ascher
Title: Vice President
FOOTHILL CAPITAL CORPORATION
By: /s/ Henry K. Jordan
---------------------------------------------
Name: Henry K. Jordan
Title: Executive Vice President
FOOTHILL PARTNERS, L.P.,
a Delaware limited partnership
By: The Foothill Group, Inc.,
General Partner
By: /s/ Dennis R. Ascher
----------------------------------------
Name: Dennis R. Ascher
Title: Vice President
<PAGE>
SCHEDULE 13D
CUSIP No. 758934-10-3 Page 15 of 15 Pages
MANAGING GENERAL PARTNERS
/s/ John F. Nickoll
----------------------------------------------
John F. Nickoll
/s/ Dennis R. Ascher
----------------------------------------------
Dennis R. Ascher
/s/ Jeffrey T. Nikora
----------------------------------------------
Jeffrey T. Nikora
CONDOR INVESTMENTS LIMITED PARTNERSHIP,
a Minnesota Limited Partnership
By: The Foothill Group, Inc.,
General Partner
By: /s/ Dennis R. Ascher
-----------------------------------
Name: Dennis R. Ascher
Title: Vice President
By: Foothill Capital Corporation,
General Partner
By: /s/ Henry K. Jordan
-----------------------------------
Name: Henry K. Jordan
Title: Executive Vice President
