<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
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)
March 17, 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>
CUSIP No. 758934-10-3 SCHEDULE 13D 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 SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED -0- (See Item 5)
BY EACH REPORTING --------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
978,962 (See Item 5)
--------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0- (See Item 5)
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
978,962 (See Item 5)
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
978,962
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.85%
- -------------------------------------------------------------------------------
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>
CUSIP No. 758934-10-3 SCHEDULE 13D 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 SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED -0-
BY EACH REPORTING --------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
549,356 (See Item 5)
--------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
549,356 (See Item 5)
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
549,356 (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)
3.28%
- -------------------------------------------------------------------------------
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>
CUSIP No. 758934-10-3 SCHEDULE 13D 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 SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED -0- (See Item 5)
BY EACH REPORTING --------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
429,606 (See Item 5)
--------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0- (See Item 5)
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
429,606 (See Item 5)
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
429,606
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.57%
- -------------------------------------------------------------------------------
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>
CUSIP No. 758934-10-3 SCHEDULE 13D 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*
00
- -------------------------------------------------------------------------------
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 SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED -0- (See Item 5)
BY EACH REPORTING --------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
549,356 (See Item 5)
--------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0- (See Item 5)
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
549,356 (See Item 5)
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
549,356
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.28%
- -------------------------------------------------------------------------------
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>
CUSIP No. 758934-10-3 SCHEDULE 13D Page 6 of 15 Pages
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- -------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
John F. Nickoll
###-##-####
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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 SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED 50,789 (See Item 5)
BY EACH REPORTING -------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
429,606 (See Item 5)
-------------------------------------------------
9 SOLE DISPOSITIVE POWER
50,789 (See Item 5)
-------------------------------------------------
10 SHARED DISPOSITIVE POWER
429,606 (See Item 5)
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
480,395
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.87%
- -------------------------------------------------------------------------------
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>
CUSIP No. 758934-10-3 SCHEDULE 13D Page 7 of 15 Pages
----------- --- ----
- -------------------------------------------------------------------------------
1 NAME 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 SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED 1,010 (See Item 5)
BY EACH REPORTING --------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
429,606 (See Item 5)
--------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,010 (See Item 5)
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
429,606 (See Item 5)
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
430,616
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.57%
- -------------------------------------------------------------------------------
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>
CUSIP No. 758934-10-3 SCHEDULE 13D Page 8 of 15 Pages
----------- --- ----
- -------------------------------------------------------------------------------
1 NAME 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 SHARES 7 SOLE VOTING POWER
BENEFICIALLY OWNED 58 (See Item 5)
BY EACH REPORTING --------------------------------------------------
PERSON WITH 8 SHARED VOTING POWER
429,606 (See Item 5)
--------------------------------------------------
9 SOLE DISPOSITIVE POWER
58 (See Item 5)
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
429,606 (See Item 5)
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
429,664
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.57%
- -------------------------------------------------------------------------------
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>
CUSIP No. 758934-10-3 SCHEDULE 13D 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>
CUSIP No. 758934-10-3 SCHEDULE 13D 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, Director
Suite 1500
Los Angeles, CA 90025
Peter E. Schwab 11111 Santa Monica Blvd. Executive Vice President, Director
Suite 1500
Los Angeles, CA 90025
Henry K. Jordan 11111 Santa Monica Blvd. Senior Vice President, Chief Financial
Suite 1500 Officer
Los Angeles, CA 90025
Kevin Gary 11111 Santa Monica Blvd. Senior Vice President, Controller, and
Suite 1500 Corporate Secretary
Los Angeles, CA 90025
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. Thorton 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>
CUSIP No. 758934-10-3 SCHEDULE 13D Page 11 of 15 Pages
----------- ---- ----
FOOTHILL CAPITAL CORPORATION
<TABLE>
<CAPTION>
Principal
Name Business Address Occupation
- ---- ---------------- ----------
<S> <C> <C>
John F. Nickoll 11111 Santa Monica Blvd. Chairman of the Board and Director
Suite 1500
Los Angeles, CA 90025
Peter E. Schwab 11111 Santa Monica Blvd. President, Chief Operating Officer and
Suite 1500 Director
Los Angeles, CA 90025
David C. Hilton 11111 Santa Monica Blvd. Senior Executive Vice President, Chief
Suite 1500 Credit Officer
Los Angeles, CA 90025
Henry K. Jordan 11111 Santa Monica Blvd. Executive Vice President and Chief
Suite 1500 Financial Officer
Los Angeles, CA 90025
Scott R. Diehl 11111 Santa Monica Blvd. Executive Vice President
Suite 1500
Los Angeles, CA 90025
Phillip W. Hughes 11111 Santa Monica Blvd. Executive Vice President
Suite 1500
Los Angeles, CA 90025
Barry A. Grossman 11111 Santa Monica Blvd. Executive Vice President
Suite 1500
Los Angeles, CA 90025
Ellyn M. Norwood 11111 Santa Monica Blvd. Executive Vice President
Suite 1500
Los Angeles, CA 90025
Mark Rosenbaum 11111 Santa Monica Blvd. Executive Vice President
Suite 1500
Los Angeles, CA 90025
</TABLE>
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>
CUSIP No. 758934-10-3 SCHEDULE 13D 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 the 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 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 of the Issuer reported
in this Item 5(a) are based on the assumption that there are 16,737,170
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 September
30, 1996.
As of the date of its execution hereof, Partners was the direct owner of
429,606 shares, or 2.57%, of Common Stock.
As of the date of its execution hereof, Condor was the direct owner of
549,356 shares, or 3.28%, 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 978,962 shares, or 5.85%, 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 549,356 shares, or 3.28%, of
Common Stock.
<PAGE>
CUSIP No. 758934-10-3 SCHEDULE 13D Page 13 of 15 Pages
----------- ---- ----
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 shares of Common Stock, which options are presently
exercisable, for a total of 50,789 shares, or .303%, 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 .00035%, 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
429,606 shares, or 2.57%, of Common Stock; Mr. Nickoll is deemed beneficially
to own 480,395 shares, or 2.87%, of Common Stock, Mr. Ascher is deemed
beneficially to own 430,616 shares, or 2.57%, of Common Stock, and Mr. Nikora
is deemed beneficially to own 429,664 shares, or 2.57%, of Common Stock.
(b) Condor has sole voting and sole dispositive power with respect to
the 549,356 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 549,356 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 549,356 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 429,606 shares of Common Stock
directly owned by Partners.
(c) On March 14, 1997, Condor and Partners sold an aggregate of 27,500
shares of Issuer's Common Stock at a price of $11.00 per share, on the open
market. On March 17, 1997, Condor and Partners sold an aggregate of 25,000
shares of Issuer's Common Stock at a price of $11.00 per share, on the open
market. On March 25, 1997 Condor and Partners sold an aggregate of 10,000
shares of Issuer's Common Stock at a price of $10.75 per share, on the open
market.
(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.
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.
<PAGE>
CUSIP No. 758934-10-3 SCHEDULE 13D Page 14 of 15 Pages
----------- ---- ----
Group, Capital, Partners, Condor and the Managing General Partners
have executed a joint reporting agreement (the "Joint Reporting Agreement")
dated March 17, 1997 pursuant to which they have agreed to file one joint
statement on behalf of all of them with respect to the subject matter of this
Schedule 13D and any amendments thereto.
Item 7. Material to be Filed as Exhibits.
Joint Reporting Agreement
SIGNATURE
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: March __, 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>
CUSIP No. 758934-10-3 SCHEDULE 13D 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
<PAGE>
JOINT REPORTING AGREEMENT
In consideration of the mutual covenants herein contained, each of
the parties hereto represents to and agrees with the other party as follows:
1. Such party is eligible to file a statement or statements on
Schedule 13D pertaining to the Common Stock, par value $.01 per share, of
Regency Health Services, Inc., to which this agreement is an exhibit, for filing
of the information contained herein.
2. Such party is responsible for timely filing of such statement and
any amendments thereto and for the completeness and accuracy of the information
concerning such party contained therein, provided that no such party is
responsible for the completeness or accuracy of the information concerning any
other party making the filing, unless such party knows or has reason to believe
that such information is inaccurate.
3. Such party agrees that such statement is filed by and on behalf
of each such party and that any amendment thereto will be filed on behalf of
each such party.
This agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original instrument, but all of such
counterparts together shall constitute but one agreement.
Dated: March 17, 1997
THE FOOTHILL GROUP, INC.
By: /s/ Dennis R. Ascher
-----------------------------------------------
Name: Dennis R. Ascher
-----------------------------------------------
Title: Vice President
-----------------------------------------------
FOOTHILL CAPITAL CORPORATION
By: /s/ Dennis R. Ascher
-----------------------------------------------
Name: Dennis R. Ascher
-----------------------------------------------
Title: Vice President
-----------------------------------------------
1
<PAGE>
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
-------------------------------------------
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/ Dennis R. Ascher
--------------------------------------
Name: Dennis R. Ascher
--------------------------------------
Title: Vice President
--------------------------------------
2
<PAGE>
MANAGING GENERAL PARTNERS
/s/ John F. Nickoll
-------------------------------------------
John F. Nickoll
/s/ Dennis R. Ascher
-------------------------------------------
Dennis R. Ascher
/s/ Jeffrey T. Nikora
-------------------------------------------
Jeffrey T. Nikora
3
