<PAGE>
-------------------------
OMB APPROVAL
-------------------------
OMB NUMBER 3235-9145
-------------------------
UNITED STATES Expires: October 31, 2002
SECURITIES AND EXCHANGE COMMISSION -------------------------
WASHINGTON, D.C. 20549 Estimated average burden
-------------------------
hours per response ..14.9
-------------------------
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )*
------
Philip Services Corporation
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
- --------------------------------------------------------------------------------
(Title of Class of Securities)
718193105
----------------------------------
(CUSIP Number)
April 7, 2000
- --------------------------------------------------------------------------------
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
/ / Rule 13d-1(b)
/X/ Rule 13d-1(c)
/ / Rule 13d-1(d)
*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 the disclosures provided in a prior cover page.
The information required in 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).
CUSIP No. 718193105
---------
PAGE 1 OF 12 PAGES
- -------------------------------------------------------------------------------
<PAGE>
PAGE 2 OF 12 PAGES
(1) Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
The Foothill Group, Inc.
- -------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) /X/
of a Group (See Instructions) (b) / /
- -------------------------------------------------------------------------------
(3) SEC Use Only
- -------------------------------------------------------------------------------
(4) Citizenship or Place of Organization
Delaware
- -------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power
Beneficially 0
Owned by --------------------------------------------------
Each Reporting (6) Shared Voting Power
Person With: 1,241,845
--------------------------------------------------
(7) Sole Dispositive Power
0
--------------------------------------------------
(8) Shared Dispositive Power
1,241,845
- -------------------------------------------------------------------------------
(9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,241,845
- -------------------------------------------------------------------------------
(10) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) / /
- -------------------------------------------------------------------------------
(11) Percent of Class Represented by Amount in Row (11)
5.10%
- -------------------------------------------------------------------------------
(12) Type of Reporting Person (See Instructions)
- -------------------------------------------------------------------------------
CO
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
PAGE 3 OF 12 PAGES
(1) Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Foothill Partners III, L.P.
- -------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) /X/
of a Group (See Instructions) (b) / /
- -------------------------------------------------------------------------------
(3) SEC Use Only
- -------------------------------------------------------------------------------
(4) Citizenship or Place of Organization
Delaware
- -------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power
Beneficially 0
Owned by --------------------------------------------------
Each Reporting (6) Shared Voting Power
Person With: 1,241,845
--------------------------------------------------
(7) Sole Dispositive Power
0
--------------------------------------------------
(8) Shared Dispositive Power
1,241,845
- -------------------------------------------------------------------------------
(9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,241,845
- -------------------------------------------------------------------------------
(10) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) / /
- -------------------------------------------------------------------------------
(11) Percent of Class Represented by Amount in Row (11)
5.10%
- -------------------------------------------------------------------------------
(12) Type of Reporting Person (See Instructions)
- -------------------------------------------------------------------------------
PN
- -------------------------------------------------------------------------------
<PAGE>
PAGE 4 OF 12 PAGES
(1) Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
M. Edward Stearns
- -------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) /X/
of a Group (See Instructions) (b) / /
- -------------------------------------------------------------------------------
(3) SEC Use Only
- -------------------------------------------------------------------------------
(4) Citizenship or Place of Organization
California
- -------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power
Beneficially 0
Owned by --------------------------------------------------
Each Reporting (6) Shared Voting Power
Person With: 1,241,845
--------------------------------------------------
(7) Sole Dispositive Power
0
--------------------------------------------------
(8) Shared Dispositive Power
1,241,845
- -------------------------------------------------------------------------------
(9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,241,845
- -------------------------------------------------------------------------------
(10) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) / /
- -------------------------------------------------------------------------------
(11) Percent of Class Represented by Amount in Row (11)
5.10%
- -------------------------------------------------------------------------------
(12) Type of Reporting Person (See Instructions)
- -------------------------------------------------------------------------------
IN
- -------------------------------------------------------------------------------
<PAGE>
PAGE 5 OF 12 PAGES
(1) Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Dennis R. Ascher
- -------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) /X/
of a Group (See Instructions) (b) / /
- -------------------------------------------------------------------------------
(3) SEC Use Only
- -------------------------------------------------------------------------------
(4) Citizenship or Place of Organization
California
- -------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power
Beneficially 0
Owned by --------------------------------------------------
Each Reporting (6) Shared Voting Power
Person With: 1,241,845
--------------------------------------------------
(7) Sole Dispositive Power
0
--------------------------------------------------
(8) Shared Dispositive Power
1,241,845
- -------------------------------------------------------------------------------
(9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,241,845
- -------------------------------------------------------------------------------
(10) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) / /
- -------------------------------------------------------------------------------
(11) Percent of Class Represented by Amount in Row (11)
5.10%
- -------------------------------------------------------------------------------
(12) Type of Reporting Person (See Instructions)
- -------------------------------------------------------------------------------
IN
- -------------------------------------------------------------------------------
<PAGE>
PAGE 6 OF 12 PAGES
(1) Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Jeffrey T. Nikora
- -------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) /X/
of a Group (See Instructions) (b) / /
- -------------------------------------------------------------------------------
(3) SEC Use Only
- -------------------------------------------------------------------------------
(4) Citizenship or Place of Organization
California
- -------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power
Beneficially 0
Owned by --------------------------------------------------
Each Reporting (6) Shared Voting Power
Person With: 1,241,845
--------------------------------------------------
(7) Sole Dispositive Power
0
--------------------------------------------------
(8) Shared Dispositive Power
1,241,845
- -------------------------------------------------------------------------------
(9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,241,845
- -------------------------------------------------------------------------------
(10) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) / /
- -------------------------------------------------------------------------------
(11) Percent of Class Represented by Amount in Row (11)
5.10%
- -------------------------------------------------------------------------------
(12) Type of Reporting Person (See Instructions)
- -------------------------------------------------------------------------------
IN
- -------------------------------------------------------------------------------
<PAGE>
PAGE 7 OF 12 PAGES
(1) Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
John F. Nickoll
- -------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member (a) /X/
of a Group (See Instructions) (b) / /
- -------------------------------------------------------------------------------
(3) SEC Use Only
- -------------------------------------------------------------------------------
(4) Citizenship or Place of Organization
California
- -------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power
Beneficially 0
Owned by --------------------------------------------------
Each Reporting (6) Shared Voting Power
Person With: 1,241,845
--------------------------------------------------
(7) Sole Dispositive Power
0
--------------------------------------------------
(8) Shared Dispositive Power
1,241,845
- -------------------------------------------------------------------------------
(9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,241,845
- -------------------------------------------------------------------------------
(10) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions) / /
- -------------------------------------------------------------------------------
(11) Percent of Class Represented by Amount in Row (11)
5.10%
- -------------------------------------------------------------------------------
(12) Type of Reporting Person (See Instructions)
- -------------------------------------------------------------------------------
IN
- -------------------------------------------------------------------------------
<PAGE>
PAGE 8 OF 12 PAGES
ITEM 1.
Philip Services Corp.
100 King Street West
Hamilton, Ontario
L8N 4J6
ITEM 2.
This Schedule 13G is filed on behalf of The Foothill Group, Inc., a
Delaware Corproation ("Group"), Foothill Partners III, L.P., a Delaware
limited partnership ("Partners"), and M. Edward Stearns, Dennis R.
Ascher, Jeffrey T. Nikora, and John F. Nickoll (collectively, the
"Managing Partners"). (Group, Partners, the Managing Partners are
collectively referred to as the "Filing Persons").
Group and the Managing Partners are the general partners of Partners.
Under the definition of "beneficial owner" provided in Rule 13d-3 of the
Exchange Act, a person may be deemed to beneficially own the shares of
Common Stock of another entity if such person shares the voting and
dispositive power with respect to shares of Common Stock held by such
entity. Accordingly, Group and the Managing partners may be deemed to
beneficially own the shares of Common Stock held by Partners, as its
general partners.
The Filing Persons have a beneficial interest in 892,978 shares of Common
Stock of the Company. The Filing Persons also have a beneficial interest
in $4,088,728 principal amount of the Company's 10% Convertible PIK Term
Notes ("Notes") which are convertible into the Company's Common Stock at
a conversion price of $11.72 per share.
a. The Foothill Group, Inc.
Foothill Partners III, L.P.
M. Edward Stearns
Dennis R. Ascher
Jeffrey T. Nikora
John F. Nickoll
b. 11111 Santa Monica Boulevard, Suite 1500
Los Angeles, California 90025-3333
c. United States
d. Common Stock
e. 718193105
<PAGE>
CUSIP NO. 718193105 PAGE 9 OF 12 PAGES
ITEM 3.
If This Statement is Filed Pursuant to Rule 13d-1(b), or 13d-2(b) or (c),
Check Whether the Person Filing is a:
a. / / Broker or dealer registered under Section 15 of the
Exchange Act
b. / / Bank as defined in Section 3(a)(6) of the Exchange Act.
c. / / Insurance company as defined in Section 3(a)(29 of the
Exchange Act.
d. / / Investment company registered under Section 8 of the
Investment Company Act.
e. / / An investment adviser in accordance with
Rule 13d-1(b)(1)(iii)(E).
f. / / An employee benefit plan or endowment fund in accordance
with Rule 13d-1(b)(1)(ii)(F).
g. / / A parent holding company or control person in accordance
with Rule 13d-1(b)(1)(ii)(G).
h. / / A savings association as defined in Section 3(b) of the
Federal Deposit Insurance Act.
i. / / A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act.
j. / / Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
If this statement is filed pursuant to Rule 13d-1(c), check this box /x/
ITEM 4. OWNERSHIP
The ownership of the Filing Persons is as follows:
THE FOOTHILL GROUP, INC.
<TABLE>
<S> <C> <C>
A. Amount Beneficially owned: 1,241,845(1)
B. Percent of class: 5.10(2)
C. Number of shares as to which such person has:
1. sole power to vote or to direct the vote: -0-
2. shared power to vote or to direct to vote: 1,241,845
3. sole power to vote or to direct to vote: -0-
4. shared power to dispose or to direct the
disposition of: 1,241,845(1)
</TABLE>
- ------------------------
(1) Of these shares, 348,867 shares are issuable upon conversion of the
Company's Notes at a conversion price of $11.72 per share.
(2) Assuming issuance of 348,867 shares of Common Stock upon conversion of
the Notes.
<PAGE>
CUSIP NO. 718193105 PAGE 10 OF 12 PAGES
EACH OF THE MANAGING PARTNERS
A. Amount Beneficially owned: 1,241,845(1)
B. Percent of class: 5.10(2)
C. Number of shares as to which such person has:
1. sole power to vote or to direct the vote: -0-
2. shared power to vote or to direct to vote: 1,241,845(1)
3. sole power to vote or to direct to vote: -0-
4. shared power to dispose or to direct the
disposition of: 1,241,845(1)
FOOTHILL PARTNERS III, L.P.
A. Amount Beneficially owned: 1,241,845(1)
B. Percent of class: 5.102
C. Number of shares as to which such person has:
1. sole power to vote or to direct the vote: -0-
2. shared power to vote or to direct the vote: 1,241,845(1)
3. sole power to vote or to direct to vote: -0-
4. shared power to dispose or to direct the
disposition of: 1,241,845(1)
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more
than five percent of the class of securities check the following / /.
<PAGE>
CUSIP NO. 718193105 PAGE 11 OF 12 PAGES
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON
Not Applicable
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY
Not Applicable
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP
Not Applicable
ITEM 9. NOTICE OF DISSOLUTION OF GROUP
Not Applicable
ITEM 10. CERTIFICATION
By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were acquired and are not held for the purpose
or with the effect of changing
<PAGE>
CUSIP NO. 718193105 PAGE 12 OF 12 PAGES
or influencing the control of the issuer of the securities and were not
acquired in connection with or as a participant in any transaction having
that purpose or effect.
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: May 12, 2000
THE FOOTHILL GROUP, INC.
By: /s/ Dennis R. Ascher
--------------------------------
Name: Dennis R. Ascher
Title: Senior Vice President
FOOTHILL PARTNERS III, L.P.,
a Delaware limited partnership
By: The Foothill Group, Inc.,
General Partner
By: /s/ Dennis R. Ascher
----------------------------
Name: Dennis R. Ascher
Title: Senior Vice President
MANAGING PARTNERS
/s/ M. E. Stearns
----------------------------
M.E. Stearns
/s/ Dennis R. Ascher
----------------------------
Dennis R. Ascher
/s/ Jeffrey T. Nikora
----------------------------
Jeffrey T. Nikora
/s/ John F. Nickoll
----------------------------
John F. Nickoll
