================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934*
HUDSON GENERAL CORPORATION
- --------------------------------------------------------------------------------
(Name of Issuer)
COMMON STOCK 443784 10 3
- --------------------------------------------------------------------------------
(Title of class of securities) (CUSIP number)
RICHARD D. SEGAL JAY B. LANGNER
C/O SEAVEST PARTNERS 111 GREAT NECK ROAD
707 WESTCHESTER AVENUE SUITE 600
WHITE PLAINS, NEW YORK 10604 GREAT NECK, NEW YORK 11021
(914) 681-4453 (516) 487-8610
- --------------------------------------------------------------------------------
(Name, address and telephone number of person
authorized to receive notices and communications)
FEBRUARY 9, 1999
- --------------------------------------------------------------------------------
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
[_].
Note. Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
The 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, as amended (the "Exchange Act"), or otherwise subject to the liabilities
of that Section of the Exchange Act but shall be subject to all other provisions
of the Exchange Act.
*NOTE: THIS STATEMENT CONSTITUTES AMENDMENT NO. 2 TO THE REPORTING
GROUP SCHEDULE 13D, AMENDMENT NO. 5 TO THE LANGNER SCHEDULE 13D, AND
AMENDMENT NO. 10 TO THE SEGAL SCHEDULE 13D.
(Continued on following page(s))
(Page 1 of 22 Pages)
================================================================================
NYFS10...:\80\57780\0003\1948\SCH2109J.450
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 2 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON: JAY B. LANGNER
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 131,254 (1)
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 131,254 (1)
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 131,254 (1)
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 7.5%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
(1) Includes 10,000 shares issuable upon the exercise of presently exercisable
options.
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 3 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: RICHARD D. SEGAL
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
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 PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 125,972 (1)
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 125,972 (1)
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 125,972
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 7.2%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
(1) Consists of (i) 27,590 shares owned by a partnership of which Mr. Segal is
the managing partner, (ii) 37,321 shares owned by a partnership of which
Mr. Segal is a co-trustee of certain of the partners thereof, (iii) 31,472
shares owned by Mr. Segal's wife as to which he is attorney-in-fact, (iv)
an aggregate of 22,329 shares owned by other members of Mr. Segal's family,
as to which he is attorney-in-fact, and (v) 7,260 shares owned by a trust
of which he is a co-trustee. Mr. Segal disclaims beneficial ownership of
all shares referred to in clauses (ii), (iii), (iv) and (v) of this
footnote 1.
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 4 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: ROCCO DALOIA
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: NOT APPLICABLE
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 0
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 5 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: FERNANDO DIBENEDETTO
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 1,010 (1)
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,010 (1)
REPORTING)
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 1,010
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.1%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
(1) Includes 1,000 shares issuable upon the exercise of presently exercisable
options.
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 6 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: DAVID A. LANGNER
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 40,090
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 40,090
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 40,090
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 2.3%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 7 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: VIRGINIA E. LUPPESCU
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 38,118
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 38,118
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 38,118
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 2.2%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 8 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: PAUL R. POLLACK
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 10,140 (1)
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 10,140 (1)
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 10,140
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.6%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
(1) Includes 8,200 shares issuable upon the exercise of presently exercisable
options.
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 9 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: BARRY I. REGENSTEIN
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 2,600 (1)
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 2,600 (1)
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 2,600
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.1%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
(1) Consists of 2,600 shares issuable upon the exercise of presently
exercisable options.
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 10 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: RAYMOND J. RIEDER
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 2,900 (1)
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 2,900 (1)
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 2,900
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.2%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
(1) Consists of 2,900 shares issuable upon the exercise of presently
exercisable options.
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 11 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: NOAH E. ROCKOWITZ
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 1,800 (1)
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,800 (1)
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 1,800
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.1%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
(1) Consists of 1,800 shares issuable upon the exercise of presently
exercisable options.
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 12 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: MICHAEL RUBIN
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 8,430 (1)
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 8,430 (1)
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 8,430
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.5%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
(1) Includes 8,200 shares issuable upon the exercise of presently exercisable
options.
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 13 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: HENRY A. SATINSKAS
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF,00
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 1,656
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,656
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 1,656
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.1%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------- --------------------------------------
CUSIP No. 443784 10 3 13D Page 14 of 22
- -------------------------------------------------------- --------------------------------------
- ---------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON: RIVER ACQUISITION CORP.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON (ENTITIES ONLY):
- ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (A) [X]
(B) [_]
- ---------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: BK
- ---------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [_]
PURSUANT TO ITEM 2(d) OR 2(e):
- ---------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF UNITED STATES
ORGANIZATION:
- ---------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
----------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
----------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
----------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY 0 (1)
REPORTING PERSON:
- ---------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN [_]
SHARES:
- ---------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0%
- ---------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Does not include shares which may be acquired by the Reporting Group
pursuant to the Merger Agreement, subject to the conditions contained
therein. See Items 3 and 4 of this Schedule 13D.
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
(AMENDMENT NO. 2)
Statement of
JAY B. LANGNER
RICHARD D. SEGAL
ROCCO DALOIA
FERNANDO DIBENEDETTO
DAVID A. LANGNER
VIRGINIA E. LUPPESCU
PAUL R. POLLACK
BARRY I. REGENSTEIN
RAYMOND J. REIDER
NOAH E. ROCKOWITZ
MICHAEL RUBIN
HENRY A. SATINSKAS
and
RIVER ACQUISITION CORP.
Pursuant to Section 13(d)
of the Securities Exchange Act of 1934
in respect of
HUDSON GENERAL CORPORATION
This Report on Schedule 13D relates to the common stock, par value $1.00
per share (the "Common Stock"), of Hudson General Corporation, a Delaware
corporation (the "Company"). The Report on Schedule 13D originally filed by the
Reporting Group (as defined below) on November 23, 1998, as amended and
supplemented by an amendment thereto previously filed with the Securities
Exchange Commission (collectively, the "Reporting Group Schedule 13D"), is
hereby amended and supplemented to include the information contained herein, and
this Report constitutes Amendment No. 2 to the Reporting Group Schedule 13D; the
Report on Schedule 13D originally filed by Jay B. Langner on September 19, 1974,
as amended and supplemented by the amendments thereto previously filed with the
Securities Exchange Commission (collectively, the "Langner Schedule 13D"), is
hereby amended and supplemented to include the information contained herein, and
this Report constitutes Amendment No. 5 to the Langner Schedule 13D; and the
Report on Schedule 13D originally filed by Richard D. Segal on June 29, 1982, as
amended and supplemented by the amendments thereto previously filed with the
Securities Exchange Commission (collectively, the "Segal Schedule 13D", and
together with the Reporting Group 13D and the Langner 13D, the "Schedule 13D"),
is hereby amended and supplemented to include the information contained herein,
and this Report constitutes Amendment No. 10 to the Segal Schedule 13D. Jay B.
Langner,
Page 15 of 22 pages
<PAGE>
David A. Langner and Virginia E. Luppescu, together with Messrs. Segal, Daloia,
DiBenedetto, Pollack, Regenstein, Rieder, Rockowitz, Rubin and Satinskas, and
River Acquisition Corp. (each, a "Reporting Person") constitute a "group" for
purposes of Rule 13d-5 under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), with respect to their respective beneficial ownership of
the Common Stock, and are collectively referred to as the "Reporting Group".
The summary descriptions contained in this Report of certain agreements
and documents are qualified in their entirety by reference to the complete texts
of such agreements and documents filed as Exhibits hereto and incorporated
herein by reference. Information contained herein with respect to each Reporting
Person is given solely by such Reporting Person, and no other Reporting Person
has responsibility for the accuracy or completeness of information supplied by
such other Reporting Person.
Page 16 of 22 pages
<PAGE>
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The information set forth in Item 3 of the Langner Schedule 13D, the Segal
Schedule 13D and the Reporting Group Schedule 13D is hereby amended and
supplemented by adding the following information thereto (capitalized terms used
but not otherwise defined in this Item 3 have the meanings ascribed to them in
the Reporting Group Schedule 13D):
On February 9, 1999, Newco and the Initial Lenders agreed to amend and
restate the Commitment Letter (the "Amended and Restated Commitment Letter") to
(i) increase, from $59,579,865 to $60,071,482, the aggregate commitment of the
Lenders under the Facilities and (ii) increase the minimum equity capital
contribution to Newco from 280,000 to 358,208 shares and retained options
equivalent to shares of Common Stock of the Company.
On February 9, 1999, Newco and the Company entered into an amendment to
the Merger Agreement (the "Merger Amendment"), providing for an increase in the
Merger Consideration from $57.25 to $61.00 per share. The Reporting Persons have
calculated that, as a result of the Merger Amendment, approximately $86.5
million will be required to fund the aggregate Merger Consideration payable to
stockholders and option holders of the Company at the closing of the Merger.
The descriptions contained herein of the Merger Amendment and the Amended
and Restated Commitment Letter are qualified in their entirety by reference to
the complete text thereof, copies of which are filed as Exhibits hereto and
incorporated by reference herein.
The information set forth in Item 6 of this Schedule 13D and Item 3 of the
Reporting Group Schedule 13D is hereby incorporated by reference herein.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE
ISSUER.
The information set forth in Item 6 of the Langner Schedule 13D, the Segal
Schedule 13D and the Reporting Group Schedule 13D is hereby amended and
supplemented by adding the following information thereto (capitalized terms used
but not otherwise defined in this Item 6 have the meanings ascribed to them in
the Reporting Group Schedule 13D):
By letter dated February 9, 1999 (the "Equity Contribution Letter"),
Messrs. Langner and Segal agreed, subject to the conditions set forth therein,
to contribute to Newco an aggregate of 358,208 shares of Common Stock (subject
to offset as set forth therein) upon consummation of the Merger.
Pursuant to a Waiver Agreement, dated February 15, 1999 (the "Waiver
Agreement"), between the Company and Newco, Newco agreed, subject to the terms
and conditions specified therein, to waive until March 17, 1999 its right to
terminate the Merger Agreement as a result of the Company entering into an
Agreement and Plan of Merger, dated as of February 15, 1999 (the "GLGR
Agreement"), with GLGR Acquisition Corp., a Delaware Corporation ("GLGR"). GLGR
is a wholly owned subsidiary of GlobeGround GmbH, which in turn is a wholly
owned subsidiary of Deutsche Lufthansa AG, a German corporation. Pursuant to the
GLGR Agreement, GLGR is to make a tender offer to acquire all of the outstanding
shares of Common Stock of the Company. The tender offer is to be followed as
soon as possible by a second-step merger pursuant to which GLGR would merge with
and into the Company, with the Company as the surviving corporation.
The descriptions contained herein of the Equity Contribution Letter and
the Waiver Agreement are qualified in their entirety by
Page 17 of 22 pages
<PAGE>
reference to the complete text thereof, copies of which are filed as Exhibits
hereto and incorporated by reference herein.
The information set forth in Item 3 of this Schedule 13D and Item 4 of
the Reporting Group Schedule 13D are hereby incorporated by reference herein.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS.
14. Amendment No. 1 to Agreement and Plan of Merger, dated as of February
9, 1998, between Hudson General Corporation and River Acquisition
Corp.
15. Equity Contribution Letter, dated February 9, 1999, from Jay B.
Langner and Richard D. Segal to Hudson General Corporation.
16. Amended and Restated Commitment Letter, dated February 9, 1999, among
BankBoston, N.A., European American Bank, The Chase Manhattan Bank,
BancBoston Robertson Stephens Inc., River Acquisition Corp. and Jay B.
Langner.
17. Waiver Agreement, dated February 15, 1999, between Hudson General
Corporation aand River Acquisition Corp.
Page 18 of 22 pages
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information set forth in this statement
is true, complete and correct.
Dated: February 16, 1999
/s/ Jay B. Langner
-------------------------------------------
Jay B. Langner
/s/ Richard D. Segal
-------------------------------------------
Richard D. Segal
/s/ Rocco Daloia
-------------------------------------------
Rocco Daloia
/s/ Fernando DiBenedetto
-------------------------------------------
Fernando DiBenedetto
/s/ David A. Langner
-------------------------------------------
David A. Langner
/s/ Virginia E. Luppescu
-------------------------------------------
Virginia E. Luppescu
/s/ Paul R. Pollack
-------------------------------------------
Paul R. Pollack
/s/ Barry Regenstein
-------------------------------------------
Barry Regenstein
/s/ Raymond J. Reider
-------------------------------------------
Raymond J. Rieder
/s/ Noah Rockowitz
-------------------------------------------
Noah Rockowitz
Page 19 of 22 pages
<PAGE>
/s/ Michael Rubin
-------------------------------------------
Michael Rubin
/s/ Henry A. Satinskas
-------------------------------------------
Henry A. Satinskas
RIVER ACQUISITION CORP.
By: /s/ Michael Rubin
-------------------------------------------
Michael Rubin
Vice President
Page 20 of 22 pages
<PAGE>
EXHIBIT INDEX
1. Proposal Letter, dated November 20, 1998, from Jay B. Langner and
Richard D. Segal to the Special Committee of the Board of
Directors of Hudson General Corporation.*
2. Agreement and Plan of Merger, dated as of November 22, 1998,
between Hudson General Corporation and River Acquisition Corp.*
3. Contribution Letter, dated November 22, 1998, from Jay B. Langner
and Richard D. Segal to Hudson General Corporation.*
4. Commitment Letter, dated November 20, 1998, among BankBoston,
N.A., European American Bank, The Chase Manhattan Bank,
BancBoston Robertson Stephens Inc., River Acquisition Corp. and
Jay B. Langner.*
5. Confidentiality Agreement, dated June 30, 1998, between Hudson
General Corporation and Jay B. Langner.*
6. Confidentiality Agreement, dated June 30, 1998, between Hudson
General Corporation and Michael Rubin.*
7. Confidentiality Agreement, dated July 1, 1998, between Hudson
General Corporation and Noah E. Rockowitz.*
8. Confidentiality Agreement, dated July 1, 1998, between Hudson
General Corporation and Paul R. Pollack.*
9. Confidentiality Agreement, dated July 2, 1998, between Hudson
General Corporation and Richard D. Segal.*
10. Confidentiality Agreement, dated July 6, 1998, between Hudson
General Corporation and Barry I. Regenstein.*
11. Expense Reimbursement Letter, dated July 9, 1998, from Hudson
General Corporation to Jay B. Langner and Richard D. Segal.*
12. Joint Filing Agreement, dated as of November 22, 1998, among Jay
B. Langner, Richard D. Segal, Rocco Daloia, Fernando DiBenedetto,
Paul R. Pollack, Barry I. Regenstein, Raymond J. Rieder, Noah E.
Rockowitz, Michael Rubin, Henry A. Satinskas and River
Acquisition Corp.*
Page 21 of 22 pages
<PAGE>
13. Amended and Restated Joint Filing Agreement, dated as of
December 22, 1998, among Jay B. Langner, Richard D. Segal, Rocco
Daloia, Fernando DiBenedetto, David A. Langner, Virginia E.
Luppescu, Paul R. Pollack, Barry I. Regenstein, Raymond J.
Rieder, Noah E. Rockowitz, Michael Rubin, Henry A. Satinskas and
River Acquisition Corp.*
14. Amendment No. 1 to Agreement and Plan of Merger, dated as of
February 9, 1998, between Hudson General Corporation and River
Acquisition Corp.
15. Equity Contribution Letter, dated February 9, 1999, from Jay B.
Langner and Richard D. Segal to Hudson General Corporation.
16. Amended and Restated Commitment Letter, dated February 9, 1999,
among BankBoston, N.A., European American Bank, The Chase
Manhattan Bank, BancBoston Robertson Stephens Inc., River
Acquisition Corp. and Jay B. Langner.
17. Waiver Agreement, dated February 15, 1999, between Hudson General
Corporation aand River Acquisition Corp.
* Previously Filed.
Page 22 of 22 pages
EXHIBIT 14
AMENDMENT NO. 1 TO AGREEMENT AND PLAN OF MERGER
Amendment No. 1 ("Amendment No. 1"), dated as of February 9, 1999,
amending the Agreement and Plan of Merger, dated as of November 22, 1998 (the
"Agreement"), between Hudson General Corporation, a Delaware corporation (the
"Company"), and River Acquisition Corp., a Delaware corporation (the "Merger
Sub").
WHEREAS, in accordance with Section 8.03 of the Agreement, the
parties hereto desire to amend the Agreement to reflect the parties agreement
that the Merger Consideration (as defined in the Agreement) has been increased
from $57.25 per share in cash to $61.00 per share in cash;
NOW, THEREFORE, in consideration of the mutual agreements herein
contained and intending to be legally bound hereby, the parties hereto agree as
follows:
1. Definitions. Capitalized terms used herein and not otherwise
defined herein shall have the meaning provided therefor in the Agreement.
2. Amendments to Agreement. The Agreement is hereby amended as set
forth in this Section 2:
(i) The first "WHEREAS" clause of the Agreement is amended to
delete the number "$57.25" and replace it with the number "$61.00".
(ii) The first sentence of Section 2.01(a) of the Agreement is
hereby amended to read in its entirety as follows:
"(a) Each share of the Common Stock issued and
outstanding immediately prior to the Effective Time (other than any shares of
Common Stock to be canceled pursuant to Section 2.01(b) and any Dissenting
Shares (as defined below)) shall be converted into the right to receive $61.00
in cash, without interest (the "Merger Consideration")."
3. Miscellaneous. Except as expressly amended hereby, the terms and
conditions of the Agreement shall continue in full force and effect. This
Amendment No. 1 is limited precisely as written and shall not be deemed to be an
amendment
<PAGE>
to any other term or condition of the Agreement or any of the documents referred
to therein. Wherever "Agreement" is referred to in the Agreement or in any other
agreements, documents and instruments, such reference shall be to the Agreement
as amended hereby.
4. Counterparts. This Amendment No. 1 may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original but all of which
taken together shall constitute one and the same agreement.
5. Governing Law. This Amendment No. 1 shall be governed by, and
construed in accordance with, the laws of the State of Delaware without regard
to the conflict of laws rules thereof.
IN WITNESS WHEREOF, the Company and Merger Sub have caused this
Amendment No. 1 to be executed as of the date first written above by their
respective officers thereunto duly authorized.
COMPANY:
HUDSON GENERAL CORPORATION
By: /s/ Michael Rubin
------------------------------------
Name: Michael Rubin
Title: President
MERGER SUB:
RIVER ACQUISITION CORP.
By: /s/ Jay B. Langner
------------------------------------
Name: Jay B. Langner
Title: Chairman
2
EXHIBIT 15
Jay B. Langner Richard D. Segal
c/o Hudson General Corporation c/o Hudson General Corporation
111 Great Neck Road 111 Great Neck Road
Great Neck, NY 11021 Great Neck, NY 11021
February 9, 1999
Hudson General Corporation
111 Great Neck Road
Great Neck, New York 11021
Gentlemen:
Reference is hereby made to Amendment No. 1, dated as of the date hereof, to the
Agreement and Plan of Merger, dated as of November 22, 1998 (as amended by
Amendment No. 1, being hereinafter referred to as the "Amended Merger
Agreement") between Hudson General Corporation (the "Company") and River
Acquisition Corp. (the "Merger Sub"). As of the Effective Time, subject to the
satisfaction or waiver of all of the closing conditions contained in Article VII
of the Amended Merger Agreement, we hereby agree, jointly and severally, to
contribute 358,208 shares of Common Stock, par value $1.00 per share ("Common
Stock"), of the Company to the Merger Sub; provided, however, that the number of
shares contributed to Merger Sub shall be reduced on a share-for-share basis for
(i) any shares of Common Stock that are contributed by other investors to Merger
Sub and (ii) up to 35,000 options to purchase shares of Common Stock retained by
other members of the Management Group in lieu of cancellation pursuant to the
Merger. Capitalized terms used but not otherwise defined herein shall have the
respective meanings ascribed thereto in the Amended Merger Agreement.
If the foregoing is acceptable to you, kindly acknowledge your agreement by
countersigning this letter agreement below.
Very truly yours,
/s/ Jay B. Langner
-----------------------------
Jay B. Langner
/s/ Richard D. Segal
-----------------------------
Richard D. Segal
ACKNOWLEDGED AND AGREED:
HUDSON GENERAL CORPORATION
By: /s/ Michael Rubin
---------------------------------
Name: Michael Rubin
Title: President
EXHIBIT 16
February 9, 1999
River Acquisition Corp.
Jay B. Langner
Suite 600
111 Great Neck Road
Great Neck, New York 11021
RE: AMENDED AND RESTATED RIVER ACQUISITION CORP. COMMITMENT LETTER
--------------------------------------------------------------
Ladies and Gentlemen:
We are pleased to confirm the commitments of each of BankBoston, N.A.
("BKB"), European American Bank ("EAB") and The Chase Manhattan Bank ("Chase"
and together with BKB and EAB, the "Initial Lenders"), subject to the terms and
conditions in this letter and in the Summary Terms and Conditions (as defined
and referred to below), to provide a senior secured financing (the "Financing")
in an aggregate amount not to exceed $60,071,482 or such lesser amount as is
calculated in accordance with Annex X attached hereto depending upon the price
per share for completion of the Recapitalization (as defined below) on a
several, ratable basis according to the respective percentages set forth
opposite our names on the signature pages hereto. The Financing will finance the
payment by a newly formed special purpose acquisition vehicle (the "HGC
Borrower") to be formed by Jay B. Langner and certain other individuals
(collectively, the "Investors") of the merger consideration for the acquisition
by the HGC Borrower of 100% of the capital stock of Hudson General Corporation,
a Delaware corporation ("HGC") not otherwise contributed by the Investors to the
HGC Borrower pursuant to the terms of a proposed cash-out merger transaction
(the "Recapitalization").
The HGC Borrower will secure its obligations under the HGC Facility
with substantially all of its assets, including, upon the consummation of the
Recapitalization, the assets of HGC. All subsidiaries of the HGC Borrower and
HGC (other than Hudson General LLC ("LLC"), Hudson Kohala, Inc. and other
subsidiaries described as Excluded Subsidiaries in the Summary Terms and
Conditions (as hereinafter defined)) will, contemporaneously with the
consummation of the Recapitalization, guaranty the obligations of the HGC
Borrower under the Financing and will secure their obligations under such
guaranty with substantially all of their assets. BKB will act as agent (the
"Agent") for itself, the other Initial Lenders and any other lending
institutions which may become party to the Financing (collectively with BKB, the
"Lenders"), and BancBoston Robertson Stephens Inc. ("BRS") will act as the
exclusive arrangement agent and arranger for the Lenders (the "Arranger") with
respect to the Financing. Based on our discussions and on the financial
statements, projections and other information and documents previously furnished
to us, we are enclosing herewith an outline of terms and conditions (the
"Summary Terms and Conditions"), which set forth the principal terms on which
each of the Initial Lenders is committing to provide its portion of the proposed
Financing, and the Arranger is committing to act as the Arranger hereunder. This
letter, along with the Summary Terms and Conditions, shall together be referred
to as the "Commitment Letter".
Although the Summary Terms and Conditions sets forth the principal
terms of the Financing, you should understand that the Initial Lenders, the
Agent and the Arranger reserve the right to propose, and you hereby agree to
negotiate in good faith, terms in addition to these terms which will not
substantially change or alter the terms of this commitment and the Summary Terms
<PAGE>
River Acquisition Corp.
Jay B. Langner
February 9, 1999
Page 2
and Conditions. Moreover, the Summary Terms and Conditions does not purport to
include all of the covenant levels, customary representations, warranties,
conditions, defaults, definitions and other terms which will be contained in the
definitive documents for the transaction, all of which must be reasonably
satisfactory in form and substance to us and our counsel and to you and your
counsel prior to proceeding with the proposed Financing and which will not
substantially change or alter the terms hereof.
Our commitments to proceed with the proposed Financing are conditioned
on there being no material misstatements in or omissions from the materials
which have previously been furnished to us for our review in connection with the
transactions contemplated hereby (taking into account all such information and
materials) and on there being no material adverse change since the date of such
materials in the assets, business or condition (financial or otherwise) or
prospects of HGC, the HGC Borrower and their respective subsidiaries, that would
impact the ability of any such entity to perform its respective obligations
described in the Summary Terms and Conditions. In addition, the proposed
Financing is subject to the conditions that no changes in governmental
regulation or policy materially and adversely affecting our ability to perform
our duties as described in the Commitment Letter or otherwise provide financing
in connection with this transaction occur prior to the closing.
By your signatures below, you represent and warrant to the Initial
Lenders, the Agent and the Arranger that (a) all information that has been and
will be made available by you or the HGC Borrower or on your or its behalf to
the Initial Lenders, the Agent or the Arranger is and will be true and correct
in all material respects and that any financial information included therein
fairly presents in all material respects the financial condition (as of the
dates thereof) and the results of operations (for the periods covered thereby)
of the HGC Borrower, HGC and their respective subsidiaries, and (b) all
financial projections concerning the HGC Borrower, HGC and their respective
subsidiaries that have been or will be made available by you, the HGC Borrower,
HGC or on your or their behalf to the Initial Lenders, the Agent or the Arranger
have been and will be prepared in good faith based upon assumptions deemed
reasonable by you at the time of preparation. You agree to revise, modify and
supplement such information and projections from time to time through the
completion of the arrangement process as necessary in order that such
information continues to be true and correct in all material respects and that
such projections remain in all material respects the Investors' good faith
estimate of financial performance. You understand that the Initial Lenders, the
Agent and the Arranger and potential Lenders will be using and relying on such
information and projections without independent verification thereof and that
the Initial Lenders', the Agent's and the Arranger's willingness to proceed with
the proposed financing is conditioned upon, among other things, there being no
material misstatement in or omissions from such information and projections.
By your signatures below, you further agree to permit the Arranger, on
or after closing, to publicize information in respect of the Financing
(including the Agent's and the Arranger's role in the structuring and financing
thereof) subject to your prior reasonable approval of the form and content
thereof. You further agree that prior to or after the execution of the
definitive documentation for the Financing, each of the Initial Lenders reserves
the right to syndicate all or any portion of its commitment hereunder to one or
more financial institutions after consultation with the Agent, the Arranger and
you, and, upon the receipt of signed commitments from any Lender agreeing to
become a party to the Financing with respect to a portion of the facilities,
such Initial Lender shall be released from a portion of its commitment hereunder
in an aggregate amount equal to the commitment of such Lender.
<PAGE>
River Acquisition Corp.
Jay B. Langner
February 9, 1999
Page 3
By your signatures below, you agree that you or the HGC Borrower shall
pay all reasonable out-of-pocket costs and expenses (the "Expenses") incurred by
(1) BKB, the Agent, the Arranger and their respective agents (including, without
limitation, any consultants contemplated herein or in the Summary Terms and
Conditions and engaged by BKB, the Agent or the Arranger) in connection with (a)
the negotiation, preparation, execution and delivery of this Commitment Letter
and the definitive loan and collateral security documentation for the Financing,
and (b) the arrangement of the Financing, and (2) the fees of a single counsel
engaged by EAB and Chase together, in each case, whether or not the transactions
contemplated hereby are consummated. The Expenses shall include, without
limitation, reasonable attorneys' fees and expenses, arrangement fees, fees of
the Agent's commercial finance examiners, consultants' fees, asset appraisal
fees, and other reasonable charges and disbursements and any other reasonable
out-of-pocket costs and expenses. All such fees and expenses invoiced at or
prior to closing shall be paid on or before the Closing Date. Further, in
consideration of the commitments contained herein you agree to pay or to cause
the HGC Borrower to pay to the Initial Lenders, the Agent and the Arranger the
fees described in the separate letters enclosed herewith (one such letter issued
in favor of the Initial Lenders and the other issued in favor of the Agent and
the Arranger and together, the "River Acquisition Corp. Fee Letters") on the
Closing Date or such other date(s) (including the date of your acceptance of
this Commitment Letter) and in the amounts provided in the River Acquisition
Corp. Fee Letters.
By your signatures below, you further agree to indemnify and hold
harmless each of the Initial Lenders, the Agent and the Arranger and their
respective officers, directors, employees, affiliates, agents and controlling
persons from and against any and all losses, claims, damages and liabilities to
which any such person may become subject arising out of, or in connection with,
this Commitment Letter, the transactions contemplated hereby or any claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether or not any of such indemnified persons is a party thereto, and to
reimburse each of such indemnified persons, from time to time upon their demand,
for any reasonable legal or other expenses incurred in connection with
investigating or defending any of the foregoing, whether or not the transactions
contemplated hereby are consummated, provided that the foregoing indemnity will
not, as to any indemnified person, apply to losses, claims, damages, liabilities
or related expenses to the extent that they arise from the bad faith, willful
misconduct or gross negligence of such indemnified person. Your obligations to
indemnify and to pay or to cause the HGC Borrower to pay the Expenses as set
forth in this letter shall remain effective until the initial funding of the
Financing under the definitive loan and collateral security documents for the
Financing; thereafter, such obligations shall be superseded by the expense
reimbursement and indemnification provisions contained in such definitive
documents, and you shall have no further such obligations hereunder.
You agree that this Commitment Letter and the River Acquisition Corp.
Fee Letters are for your confidential use only and that, without the prior
written consent of the Agent, none of such agreements will be disclosed by you
to any person (including any lender bidding for the financing contemplated by
this Commitment Letter) other than (a) any of your respective employees,
partners, accountants, attorneys, affiliates and other advisors who are or are
expected to become engaged in evaluating, approving, structuring or
administering the facilities or rendering legal advice in connection therewith,
or (b) to HGC or a special committee of the Board of Directors of HGC in
connection with your negotiation of the Recapitalization, and then, in each
case, only in connection with the transactions contemplated hereby and on a
confidential basis; provided that nothing herein shall prevent you from
disclosing such information (i) upon the order of any court or administrative
agency or upon the request of any administrative agency or authority, (ii) upon
<PAGE>
River Acquisition Corp.
Jay B. Langner
February 9, 1999
Page 4
the request or demand of any regulatory agency or authority, (iii) to the extent
that such information has been generally disclosed to the public, other than as
a result of a disclosure by you, or (iv) otherwise as required by law.
Each of the Initial Lenders, the Agent and the Arranger agrees to keep
any confidential information delivered or made available by you to it regarding
the HGC Borrower confidential from anyone other than their respective employees,
officers, attorneys and other advisors who are or are expected to become engaged
in evaluating, approving, structuring or administering the facilities or
rendering legal advice in connection therewith, and then, in each case, only in
connection with the transactions contemplated hereby and on a confidential
basis; provided that nothing herein shall prevent any of the Initial Lenders,
the Agent or the Arranger from disclosing such information (a) to potential
participants in and assignees of the facilities on a confidential basis and
subject to written confidentiality agreements as provided above, (b) upon the
order of any court or administrative agency or upon the request of any
administrative agency or authority, (c) upon the request or demand of any
regulatory agency or authority, (d) to the extent that such information has been
generally disclosed to the public, other than as a result of a disclosure by
such Initial Lender, the Agent or the Arranger, or (e) otherwise as required by
law.
This Commitment Letter shall be governed by and construed in accordance
with the laws of the Commonwealth of Massachusetts. This Commitment Letter and
the River Acquisition Corp. Fee Letters amend and restate our Commitment Letter
dated November 20, 1998 and the River Acquisition Corp. Fee Letters (as defined
herein) in their entirety and are the only agreements between you, on the one
hand, and any or all of us, on the other hand, with respect to the Financing.
This Commitment Letter shall not be assignable by you without the prior written
consent of the Initial Lenders, the Agent and the Arranger and is intended
solely for your benefit and is not intended to confer any benefits upon, or
create any rights in favor of any person other than you. This Commitment Letter
may not be amended or waived except by an instrument in writing signed by each
party hereto. This Commitment Letter may be executed in any number of
counterparts, which shall together constitute but one and the same agreement and
which counterparts may be by facsimile (to be followed promptly by original
counterparts) or by original counterparts. This Commitment Letter shall take
effect as a sealed instrument as of the date first hereinabove written.
This Commitment Letter is issued with the understanding that, until
accepted by you and except as specifically set forth in the preceding
paragraphs, it is not intended to give rise to any legal liability on the part
of either you or any of the Initial Lenders, the Agent or the Arranger and that
the proposal set forth herein shall be considered withdrawn if for any reason
you fail to return to Michael J. Blake at BankBoston, N.A., 100 Federal Street,
Boston, Massachusetts 02110 by 5:00 p.m. (Boston time) on February 12, 1999 (the
"Expiration Date") the enclosed copy of this letter and the accompanying River
Acquisition Corp. Fee Letters, signed by you, together with the fees required by
the terms of such River Acquisition Corp. Fee Letters to be paid as of the date
hereof.
[Remainder of page intentionally left blank]
<PAGE>
River Acquisition Corp.
Jay B. Langner
February 9, 1999
Page 5
If the foregoing is in accordance with your understanding, please
accept this letter in the space indicated below and return it to us on or prior
to the Expiration Date. This letter supersedes all of our prior letters and
communications to you regarding the subject matter of this letter, including our
Commitment Letter dated as of November 20, 1998.
Commitment Percentages Very truly yours,
Term Loan A: 50% BANKBOSTON, N.A.
Term Loan B: 50%
Revolving Credit: 50% By: /s/ Michael J. Blake
-------------------------------
Name: Michael J. Blake
Title: Director
EUROPEAN AMERICAN BANK
Term Loan A: 25%
Term Loan B: 25%
Revolving Credit: 25% By: /s/ Pasqualina Coppola
-------------------------------
Name: Pasqualina Coppola
Title: Assistant Vice
President
THE CHASE MANHATTAN BANK
Term Loan A: 25%
Term Loan B: 25%
Revolving Credit: 25% By: /s/ William DeMilt
-------------------------------
Name: William DeMilt
Title: Vice President
BANCBOSTON ROBERTSON STEPHENS INC.
By: /s/ Christopher G. Mathon
-------------------------------
Name: Christopher G. Mathon
Title: Director
<PAGE>
River Acquisition Corp.
Jay B. Langner
February 9, 1999
Page 6
AMENDED AND RESTATED
RIVER ACQUISITION CORP.
COMMITMENT LETTER,
ACCEPTED AND AGREED TO
AS OF THE 9th DAY OF FEBRUARY, 1999
RIVER ACQUISITION CORP.
By: /s/ Jay B. Langner
--------------------------------
Title: President
/s/ Jay B. Langner
- ------------------------------------
Jay B. Langner
<PAGE>
ANNEX X
CALCULATION OF FINANCED AMOUNT
------------------------------
<TABLE>
<CAPTION>
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
PRICE PER SHARE*+ TERM LOAN A TERM LOAN B REVOLVER TOTAL
----- --- ------- ---- ---- - ---- ---- - -------- -----
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C>
$61.00 $47,571,482 $7,500,000 $5,000,000 $60,071,482
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$60.50 $46,861,976 $7,500,000 $5,000,000 $59,361,976
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$59.50 $45,442,964 $7,500,000 $5,000,000 $57,942,964
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$58.50 $44,023,952 $7,500,000 $5,000,000 $56,523,952
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$57.50 $42,604,940 $7,500,000 $5,000,000 $55,104,940
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$56.50 $41,185,928 $7,500,000 $5,000,000 $53,685,928
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$55.50 $39,766,916 $7,500,000 $5,000,000 $52,266,916
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$54.50 $38,347,904 $7,500,000 $5,000,000 $50,847,904
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$53.50 $36,928,892 $7,500,000 $5,000,000 $49,428,892
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$52.50 $35,509,880 $7,500,000 $5,000,000 $48,009,880
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
$51.50 $34,090,868 $7,500,000 $5,000,000 $46,590,868
- ------------------------- ---------------------- ----------------------- ---------------------- ----------------------
</TABLE>
* In the event that the price per share actually agreed upon is not a
whole dollar amount plus fifty cents, the parties agree that the amount
financed shall be modified proportionately to reflect the difference
between the nearest whole dollar plus fifty cents share price and the
actual price agreed upon.
+ In the event that the price per share is less than $51.50 per share,
the parties agree that the amount financed (as reflected in the Term
Loan A and Total columns in the table above) shall be reduced by
$1,419,012 for every dollar which the final price per share falls below
$51.50 per share.
<PAGE>
RIVER ACQUISITION CORP.
SUMMARY OF TERMS AND CONDITIONS
FOR UP TO $60,071,482 SENIOR SECURED CREDIT FACILITIES
- --------------------------------------------------------------------------------
BORROWER: River Acquisition Corp., a special purpose acquisition
vehicle formed by the Investors under the laws of
Delaware and to be merged with HGC on the Closing Date.
FACILITIES: (A) Up to $47,571,482 Term Loan A
(B) Up to $7,500,000 Term Loan B
(C) $5,000,000 Revolving Credit
Calculation of the amount of Term Loan A is subject to
the terms and conditions contained in Annex X to the
Commitment Letter.
USE OF PROCEEDS: (A) & (B) To finance the recapitalization of HGC in
connection with a privatization transaction (the
"Recapitalization") and to pay associated fees and
expenses. (C) For working capital and general corporate
purposes.
AGENT: BankBoston, N. A. ("BankBoston" or the "Agent").
ARRANGER: BancBoston Robertson Stephens Inc. ("BRS").
LENDERS: BankBoston and a group of financial institutions
reasonably acceptable to BankBoston, BRS and the
Borrower. Notwithstanding the foregoing, the Facilities
shall be arranged on a pro rata basis with the
$20,000,000 Senior Secured Credit Facilities
proposed for Hudson General LLC ("LLC") and its
subsidiaries in the Commitment Letter and Summary Terms
and Conditions dated as of the date hereof and
pertaining to LLC (the "LLC Commitment Letter").
GUARANTORS: All direct and indirect present and future subsidiaries
of the Borrower other than LLC, LLC's subsidiaries,
Hudson Kohala, Inc. and any subsidiary which (i) has
aggregate total assets or a net worth less than $100,000
and (ii) does not engage in business of any kind or
nature (such subsidiaries, collectively with LLC and
Hudson Kohala, Inc., the "Excluded Subsidiaries").
CLOSING DATE: A mutually agreeable date to be determined, but not
later than April 30, 1999.
<PAGE>
FINAL MATURITY DATE: (A) & (C) 5 years from the Closing Date.
(B) 6 years from the Closing Date.
AVAILABILITY: (A) & (B) Loans must be borrowed in a single drawing on
the Closing Date. (C) Loans may be borrowed repaid and
reborrowed from the Closing Date through the Final
Maturity Date, subject to compliance with all covenants
and terms governing the Facilities.
AMORTIZATION: (A) & (B) Subject to further due diligence, including
review of the Borrower's financial projections, the Term
Loans will amortize in quarterly payments aggregating
the following amounts annually:
Year Term Loan A Term Loan B
---- ----------- -----------
1 $1,500,000 $0
2 2,000,000 0
3 2,500,000 0
4 32,000,000 0
5 9,571,482 0
-----------
6 7,500,000
-----------
Total $47,571,482 $7,500,000
MANDATORY
PREPAYMENTS: Mandatory prepayments from the following sources (which
prepayments shall be subject to payment of breakage
costs) will be applied initially to Term Loan A until
repaid in full and thereafter to Term Loan B to reduce
outstanding amounts under each facility in equal
installments over each of the remaining years:
o 100% of Excess Cash Flow (definition to be
determined) in excess of $1,000,000 on an annual
basis.
o 100% of the net proceeds from asset sales (other
than in the ordinary course of business) and
equity or new debt offerings
o 100% of the net cash proceeds to the Borrower
from dividends, distributions and intercompany
note collections (in a minimum amount of
$9,500,000 within 30 days following the Closing
Date) from LLC for the 1998 fiscal year. If any
of such payments occur prior to the Closing
Date, the minimum cash requirement specified in
the Conditions Precedent section of this term
sheet shall increase by the amount of such
payments and the amount of Term Loan A shall
decrease by a corresponding amount.
o 100% of the net proceeds from the redemption of
HGC's preferred interest in LLC.
VOLUNTARY
PREPAYMENTS: Permitted, subject to payment of breakage costs, if any,
in the case of LIBOR Rate loans. Voluntary prepayments
shall be applied first to Term Loan A until fully repaid
and thereafter to Term Loan B. All prepayments shall be
applied to reduce outstanding amounts in equal
installments over each of the remaining years.
<PAGE>
SECURITY: The Revolving Credit, Term Loan A, Term Loan B and
obligations to the Lenders under interest rate
protection agreements will be collateralized by (a) a
perfected first priority security interest in all
tangible and intangible assets (subject to exceptions to
be determined, which exceptions shall be reasonably
acceptable to the Agent and the Lenders) of the Borrower
and its subsidiaries (including HGC but excluding the
Excluded Subsidiaries), now owned or hereafter acquired,
including without limitation the Borrower's interests in
the common ownership units of LLC and any preferential
ownership in LLC and (b) a pledge of 100% of the equity
interests in the Borrower. A double negative pledge will
be provided on all assets of the Borrower and its
subsidiaries (with exceptions satisfactory to the
Borrower, the Agent and the Lenders to be negotiated)
not included in the security package for the Lenders.
INTEREST RATES: The Alternate Base Rate ("ABR") or the LIBOR Rate
("LIBOR") plus the Applicable Margin determined
quarterly in accordance with the terms set forth on
Annex A hereto. Alternate Base Rate shall mean the
higher of the Agent's Base Rate as announced from time
to time, or the Federal Funds rate plus 0.50%.
INTEREST PAYMENTS: For Alternate Base Rate loans, at the end of each fiscal
quarter. For LIBOR Rate loans, at the end of each
Interest Period, or quarterly, if earlier. Interest will
be calculated on an actual/365 day basis for Alternate
Base Rate Loans and on an actual/360 day basis for LIBOR
Rate loans.
INTEREST PERIODS: For LIBOR Rate loans, 1, 2, 3 or 6 months, subject to
availability.
FEES: Per the Fee Letters.
INTEREST RATE
PROTECTION: Within 90 days following the Closing Date, the Borrower
will obtain interest rate protection in an amount and
tenor satisfactory to the Borrower, the Agent and the
Lenders and at a rate level satisfactory to the Borrower
and the Agent.
CONDITIONS
PRECEDENT: Usual and customary in transactions of this type,
including without limitation, the following:
o Satisfactory representations and warranties and
execution and delivery of satisfactory
documentation including without limitation loan
documentation, security documentation, merger
agreements and any other agreements deemed
necessary or appropriate by the Agent or the
Lenders in connection with the proposed
Facilities and the Recapitalization.
o Satisfactory corporate and capital structure of
the Recapitalization including without
limitation (i) minimum equity capital
contribution by the Investors of at least
358,208 shares and retained options equivalent
to shares of HGC in the Recapitalization, at
least 323,208 of which shall be shares of HGC,
(ii) minimum cash of the Borrower of not less
than $35,000,000 (or such greater amount as is
necessary to complete the Recapitalization if
fees and expenses incurred in connection
therewith exceed those assumed in the
calculation of Annex X) at the time of the
Recapitalization, and (iii) satisfactory
limitations on the types of investments to be
made by HGC and all subsidiaries including LLC
and its subsidiaries.
<PAGE>
o The Recapitalization shall be completed at a
maximum share price of $61.00 per share to
public shareholders.
o The Agent's and the Lenders' satisfaction that
the Recapitalization and the Financing comply
with all applicable laws, including securities
laws.
o Successful completion (but for the funding of
the Facilities) of the Recapitalization in
accordance with applicable law and documentation
satisfactory in form and substance to the Agent
and the Lenders (which documentation shall not
have been amended, waived or modified).
o Receipt and review of unaudited consolidated
financial statements of HGC and its subsidiaries
for the fiscal period ended December 31, 1998,
which financial statements shall be reasonably
satisfactory in form and substance to the Agent
and the Lenders.
o The Lenders, the Agent and the Arranger having
received all fees and expenses payable in
connection with the Facilities described herein.
o There being no material adverse change in the
final financial projections received by the
Agent and the Lenders on October 20, 1998 (other
than variations resulting from seasonal weather
conditions).
o No material misstatements in or omissions from
the materials previously furnished to the Agent
and the Lenders for their review. The Agent and
the Lenders must be satisfied that any financial
statements delivered to them fairly present the
business and financial condition of the Borrower
or, as the case may be, HGC and its
subsidiaries.
o Absence of any material adverse change in the
condition (financial or otherwise), operations,
assets, and/or income of the Borrower, of HGC,
of the Borrower and its subsidiaries taken as a
whole, or of HGC and its subsidiaries taken as a
whole; and absence of any default or event of
default under any material contract or
agreement.
o Satisfactory review of all material pending or
threatened litigation (with the Agent and the
Lenders agreeing that they are satisfied with
the status of the litigation disclosed in the
June 30, 1998 10-K of HGC and the September 30,
1998 10-Q of HGC); absence of any material
contingent liabilities; absence of actual or
threatened litigation or other proceedings
challenging the Recapitalization, the Financing
or any transactions contemplated herewith or
therewith, which could reasonably be expected to
have a materially adverse effect on (a) the
assets, liabilities, business, or business
prospects of the Borrower, of HGC, of the
Borrower and its subsidiaries taken as a whole,
or of HGC and its subsidiaries taken as a whole;
(b) the ability of the Borrower or its
subsidiaries to perform its obligations under
the loan or collateral security documents; or
(c) the rights and remedies of the Agent or the
Lenders under the loan or collateral security
documents.
o All governmental and third-party consents and
approvals necessary or advisable in connection
with the Facilities, the Recapitalization and
the continuing operations of the Borrower and
HGC shall have been obtained and shall be in
full force and effect, and all applicable
waiting periods shall have expired without any
action being taken or threatened by any
competent authority that would restrain, prevent
or otherwise impose materially adverse
conditions on the Borrower, the Recapitalization
or any of the transactions contemplated in
connection herewith or therewith.
o The proposed financing is subject to the
conditions that none of the Lenders shall have
breached its obligations under this Commitment
Letter or under the LLC Commitment Letter (it
being understood that withdrawal of a commitment
as a result of any of the conditions set forth
in the Commitment Letter, this Summary of Terms
and Conditions or any related fee letter not
being satisfied shall not constitute a breach)
and that no material changes in governmental
regulations or policies affecting the Borrower,
HGC, the Agent, Arranger or Lenders involved in
this transaction occur prior to the Closing
Date.
o The contemporaneous closing of the $20,000,000
senior secured financing of LLC pursuant to the
terms and conditions set forth in the LLC
Commitment Letter, and the termination of HGC's
and LLC's existing credit facilities, together
with the release or assignment of all liens and
security interests securing the obligations
thereunder.
<PAGE>
o Other conditions precedent specific to this
transaction and typical of facilities of this
type, including the Agent's receipt of
satisfactory applicable corporate and
shareholder approval of the Financing and the
Recapitalization, evidence of the completion of
adequate corporate formalities, together with
satisfactory legal opinions, a solvency opinion
(after giving effect to the Recapitalization),
UCC search results, and all filings, documents
and items deemed necessary or appropriate by the
Agent in order to ensure the first priority
security interest of the Agent, for the benefit
of the Lenders, in the collateral.
REPORTING
REQUIREMENTS: Periodic financial reporting with respect to the
Borrower and its subsidiaries, including, but not
limited to, the following: certified annual audited
financials, quarterly financials, quarterly compliance
certificates, annual budgets and other information that
may from time to time be requested by the Agent,
Arranger or any of the Lenders.
FINANCIAL
COVENANTS: Financial covenants, to be determined, will be
satisfactory to the Agent and the Lenders and will be
typical of those found in senior credit agreements of
this type and will include without limitation the
following:
o Maximum Funded Debt/Adjusted EBITDA
o Minimum Interest Coverage
o Minimum Debt Service Coverage
o Minimum Net Worth or equivalent
OTHER TERMS
AND CONDITIONS: Customary for facilities of this type, including without
limitation, the following, in each case reasonably
satisfactory in form and substance to the Agent and the
Lenders:
o Customary affirmative covenants.
o Limitations on capital expenditures, dividends,
redemptions, liens, indebtedness, negative
pledges, contingent liabilities, investments,
affiliate transactions, mergers, acquisitions,
asset sales, sale leasebacks, etc.
o Customary events of default including without
limitation a cross-default to other indebtedness
(including a cross-default to indebtedness of
LLC) and a change in control default.
o Restriction on material amendment or other
modification of any of the organizational
documents of the Borrower or its subsidiaries
(other than such amendments as are completed on
or prior to the Closing Date and are necessary
to the accomplishment of the Recapitalization
and are satisfactory to the Agent and the
Lenders).
ASSIGNMENTS AND
PARTICIPATIONS: Usual and customary for transactions of this type and
size. Each Lender may assign all or a portion of its
loans and commitments under the Facilities, or sell
participations therein, to another person or persons,
provided that each such assignment shall be in a minimum
amount of $2,500,000 (or if less, such Lender's entire
commitment), shall only be permitted in connection with
the acceptance by the applicable assignee of a pro rata
portion of such Lender's interest in the facilities
provided pursuant to the LLC Commitment Letter, and
shall be subject to certain conditions, including but
not limited to, the approval of the Borrower (so long as
no Event of Default has occurred) and the Agent, such
approvals not to be unreasonably withheld. Each
<PAGE>
assignment shall be subject to payment to the Agent by
the assigning Lender of an assignment fee of $3,500.
ARRANGEMENT: The Borrower or the Investors will provide all
information (including pro forma financial projections),
in a form reasonably acceptable to the Agent and
Arranger, necessary for the preparation of an
information memorandum describing the Borrower, HGC, the
Facilities and any related transactions. Such package
will be distributed on a confidential basis to selected
financial institutions. In addition, the management of
HGC and the Investors will, at the request of the Agent
or Arranger, hold themselves and their advisors
available at reasonable times to meet with potential
lenders and to answer questions during the arrangement
process.
VOTING RIGHTS: Waivers and amendments must be approved by the Required
Lenders provided, however, that increases of
commitments, reductions in interest rates or fees,
extensions of maturity, postponement of required
principal payments, release of any guaranty or any
substantial part of the collateral, or change to the
definition of Required Lenders will require consent from
100% of the Lenders. Required Lenders means any two or
more Lenders holding at least 66-2/3% of the outstanding
Loans and unused Commitments.
EXPENSES AND
INDEMNIFICATION: Without limiting the Commitment Letter, Borrower will
pay all reasonable fees and expenses incurred by the
Agent and Arranger in connection with the preparation
and execution of the Facilities. These will include,
without limitation, legal, arrangement, collateral
examination, tax consultant, appraisal, environmental
survey and other direct out-of-pocket expenses.
Without limiting the Commitment Letter, the Borrower
will indemnify and hold harmless the Agent, Arranger and
the Lenders (and their respective directors, officers,
employees and agents) against any damages, loss,
liability, cost or expense incurred in respect of the
financing contemplated hereby or the use or the proposed
use of proceeds thereof (except to the extent resulting
from the gross negligence or willful misconduct of the
indemnified party).
GOVERNING LAW: Commonwealth of Massachusetts.
AGENT AND
ARRANGER'S COUNSEL: Bingham Dana LLP.
<PAGE>
Annex A
INTEREST RATE:
Revolving Credit and
Adjusted Term Loan A
-------- -----------
Level EBITDA/Interest ABR + LIBOR +
----- --------------- ----- -------
I (less than) 1.50x 1.00% 3.00%
II (greater than) = 1.50x 0.75% 2.75%
III (greater than) = 2.00x 0.50% 2.50%
IV (greater than) = 2.50x 0.25% 2.25%
The Pricing Grid notwithstanding, pricing would not be
lower than Level I until delivery of the compliance
certificate for the period ending June 30, 1999.
Adjusted EBITDA shall be measured on a rolling four
quarter basis (including periods prior to the
Recapitalization) and shall be adjusted to reflect cash
earnings of the Borrower.
Pricing for Term Loan B shall be LIBOR + 3.50% or ABR +
1.50% without reference to the Pricing Grid.
DEFAULT PRICING: Upon the occurrence and continuance of an Event of
Default, the Facilities will accrue interest at the
Applicable Margin or spread over the Alternate Base Rate
plus 2%.
COMMITMENT FEE: 0.375% per annum on the unused portion of the Revolving
Credit facility, payable quarterly in arrears.
EXHIBIT 17
WAIVER AGREEMENT
Waiver Agreement, dated February 15, 1999, relating to the
Agreement and Plan of Merger dated as of November 22, 1998 as amended by
Amendment No. 1 thereto dated February 9, 1999 (the "Merger Agreement"), between
Hudson General Corporation, a Delaware corporation (the "Company"), and River
Acquisition Corp., a Delaware corporation ("River").
WHEREAS, the Company and River have entered into the Merger
Agreement which contemplates the purchase by River of all of the outstanding
shares of common stock of the Company for a price of $61.00 per share in cash;
WHEREAS, GlobeGround GmbH, a German company ("GlobeGround"),
has offered to purchase all of the outstanding shares of common stock of the
Company for a price of $76.00 per share in cash; and
WHEREAS, the Company and GLGR Acquisition Corp., a Delaware
corporation ("GLGR") and a wholly-owned subsidiary of GlobeGround, propose to
enter into an Agreement and Plan of Merger (the "GlobeGround Merger Agreement"),
to be dated as of February 15, 1999, which contemplates the purchase by GLGR of
all of the outstanding shares of common stock of the Company for a price of
$76.00 per share in cash, subject to certain conditions.
NOW, THEREFORE, in consideration of the mutual agreements
herein contained and intending to be legally bound hereby and other good and
valuable consideration, the parties hereto agree as follows:
1. Definitions. Capitalized terms used herein and not
otherwise defined herein shall have the meaning provided therefor in the Merger
Agreement.
2. GlobeGround Merger Agreement. River agrees that
notwithstanding any provisions to the contrary contained in the Merger
Agreement, including without limitation the provisions of clauses (i) and (ii)
of Section 8.01(f) of the Merger Agreement, River shall not exercise and hereby
waives any and all rights it may have to terminate the Merger Agreement
resulting from or arising out of any or all of the following: (a) the execution
by the Company of the GlobeGround Merger Agreement; (b) any recommendation made
by the Company's Board of Directors (the "Board") or the Special Committee of
the Board (the "Special Committee") to the Company's stockholders or otherwise
in support or favor of the GlobeGround Merger Agreement or the transactions
contemplated thereby; (c) any withdrawal, modification or change by the Board or
the Special Committee of their recommendation so that the Board or the Special
Committee is not in favor of the Merger Agreement or the transactions
contemplated thereby in connection with the GlobeGround Merger Agreement; or (d)
any other actions taken by the Board or the Special Committee in support or
furtherance of the GlobeGround
<PAGE>
Merger Agreement or the transactions contemplated thereby. In addition, River
hereby agrees that no action or actions taken by the Company, the Board or the
Special Committee in connection with or furtherance of the GlobeGround Merger
Agreement or the transactions contemplated thereby shall operate as or
constitute a breach of any of the terms, covenants, representations, warranties
or conditions of the Merger Agreement. The foregoing notwithstanding, effective
March 17, 1999 all rights which River may have had to terminate the Merger
Agreement and which were hereby waived, shall be reinstated and again shall be
in full force and effect if, and only if, as of such date, the GlobeGround
Merger Agreement has not been terminated, including, without limitation, the
right to receive a payment from the Company to reimburse River for Expenses as
provided in Section 8.05(b) of the Merger Agreement in connection with a
termination of the Merger Agreement by River pursuant to clauses (i) or (ii) of
Section 8.01(f) thereof. Nothing contained herein shall in any way limit or
restrict the Company's right or ability to at any time terminate the Merger
Agreement in accordance with Section 8.01(g) thereof. No waiver or amendment is
being given by River with respect to any transactions other than transactions
contemplated by the GlobeGround Merger Agreement, or with respect to any bidder
other than GlobeGround or GLGR, and nothing contained herein shall in any way
limit or restrict River's ability to terminate the Merger Agreement in
accordance with its terms except as specifically provided herein with respect to
the GlobeGround Merger Agreement or the transactions contemplated thereby.
3. Effectiveness. This Waiver Agreement shall not be
effective, and the provisions hereof shall be of no force or effect, unless and
until the Company enters into the GlobeGround Merger Agreement.
4. Counterparts. This Waiver Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original but all of
which taken together shall constitute one and the same agreement.
5. Governing Law. This Waiver Agreement shall be governed by,
and construed in accordance with, the laws of the State of Delaware without
regard to the conflict of laws rules thereof.
IN WITNESS WHEREOF, the Company and River have caused this
Waiver Agreement to be executed by their respective officers thereunto duly
authorized on this 15th day of February 1999.
RIVER ACQUISITION CORP.
By: /s/ Jay B. Langner
----------------------------
Name: Jay B. Langner
Title: Chairman
<PAGE>
HUDSON GENERAL CORPORATION
By: /s/ Michael Rubin
----------------------------
Name: Michael Rubin
Title: President
