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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. ___)*
BROOKE GROUP LTD.
-----------------
(NAME OF ISSUER)
COMMON STOCK, $.10 PAR VALUE
(TITLE OF CLASS OF SECURITIES)
112525-10-0
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(CUSIP NUMBER)
MARC E. KASOWITZ
KASOWITZ, BENSON, TORRES & FRIEDMAN LLP
1301 AVENUE OF THE AMERICAS
NEW YORK, NY 10019
(212) 506-1700
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 8, 1998
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(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 Sections 240.13d-1(e), 240.13d-1(f) or 240.13d.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 Section 240.13d-7(b) for
other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
Page 1 of 7 Pages
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CUSIP NO. 112525-10-0 PAGE 2 OF 7 PAGES
- --------------------- -----------------
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Name of Reporting Person
1 S.S. or I.R.S. Identification No. of Above Person
KASOWITZ, BENSON, TORRES & FRIEDMAN LLP
- ------- -----------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
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3 SEC Use Only
- ------- -----------------------------------------------------------------------
4 Source of Funds (See Instructions)
OO
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5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) [ ]
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6 Citizenship or Place of Organization New York
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7 Sole Voting Power
1,250,000
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8 Shared Voting Power
Number of Shares - 0 -
Beneficially Owned by ------- --------------------------------------------
Each Reporting Person 9 Sole Dispositive Power
With 1,250,000
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10 Shared Dispositive Power
- 0 -
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11 Aggregate Amount Beneficially Owned by Each Reporting Person
1,250,000
- ------- -----------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions) [ ]
- ------- -----------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
5.63%
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14 Type of Reporting Person (See Instructions)
PN
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CUSIP NO. 112525-10-0 PAGE 3 OF 7 PAGES
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Name of Reporting Person
1 S.S. or I.R.S. Identification No. of Above Person
MARC E. KASOWITZ
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2 Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds (See Instructions) N/A
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5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) [ ]
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6 Citizenship or Place of Organization United States
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7 Sole Voting Power
- 0 -
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8 Shared Voting Power
Number of Shares 1,250,000
Beneficially Owned by ------- --------------------------------------------
Each Reporting Person 9 Sole Dispositive Power
With - 0 -
------- --------------------------------------------
10 Shared Dispositive Power
1,250,000
======= =======================================================================
11 Aggregate Amount Beneficially Owned by Each Reporting Person
1,250,000
- ------- -----------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions) [ ]
- ------- -----------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
5.63%
- ------- -----------------------------------------------------------------------
14 Type of Reporting Person (See Instructions)
IN
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CUSIP NO. 112525-10-0 PAGE 4 OF 7 PAGES
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Name of Reporting Person
1 S.S. or I.R.S. Identification No. of Above Person
DANIEL R. BENSON
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2 Check the Appropriate Box if a Member of a Group
(See Instructions) (a) [X]
(b) [ ]
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3 SEC Use Only
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4 Source of Funds (See Instructions) N/A
- ------- -----------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) [ ]
- ------- -----------------------------------------------------------------------
6 Citizenship or Place of Organization United States
======= =======================================================================
7 Sole Voting Power
- 0 -
------- --------------------------------------------
8 Shared Voting Power
Number of Shares 1,250,000
Beneficially Owned by ------- --------------------------------------------
Each Reporting Person 9 Sole Dispositive Power
With - 0 -
------- --------------------------------------------
10 Shared Dispositive Power
1,250,000
======= =======================================================================
11 Aggregate Amount Beneficially Owned by Each Reporting Person
1,250,000
- ------- -----------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares (See Instructions) [ ]
- ------- -----------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
5.63%
- ------- -----------------------------------------------------------------------
14 Type of Reporting Person (See Instructions)
IN
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ITEM 1. SECURITY AND ISSUER.
This statement on Schedule 13D is being filed with respect to
the Common Stock, $.10 par value per share (the "Common Stock"), of Brooke
Group Ltd. a Delaware corporation (the "Company"), which has its principal
executive office at 100 S.E. Second Street, Miami, Florida 33131.
ITEM 2. IDENTITY AND BACKGROUND.
This Schedule 13D is being filed jointly on behalf of
Kasowitz, Benson, Torres & Friedman LLP ("KBTF"), Marc E. Kasowitz and Daniel
R. Benson (collectively, the "Reporting Persons").
KBTF is a New York limited liability partnership engaged in
the practice of law, which represents the Company and various of its
subsidiaries, including Liggett Group Inc. and New Valley Corporation. The
principal occupation of Mr. Kasowitz is serving as the Managing Partner of KBTF
and the principal occupation of Mr. Benson is serving as a Partner in KBTF. The
business address of the Reporting Persons is 1301 Avenue of the Americas, New
York, New York 10019. Messrs. Kasowitz and Benson are citizens of the United
States.
During the last five years, none of the Reporting Persons has
been convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors) or has been a party to a civil proceeding of a judicial
or administrative body of competent jurisdiction and as a result of such
proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to,
federal or state securities laws or finding any violation with respect to such
laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
See the information set forth under "Item 4. Purpose of the
Transaction."
ITEM 4. PURPOSE OF THE TRANSACTION.
On March 12, 1998, the Company entered into a Stock Option
Agreement with the Reporting Persons whereby the Reporting Persons were granted
an option to purchase 1,250,000 shares of Common Stock at $17.50 per share. The
option was exercisable for 250,000 shares commencing May 1, 1998 and for
1,000,000 shares commencing April 1, 1999, and expired on March 31, 2003.
On October 12, 1998, the Company entered into an Amended and
Restated Stock Option Agreement (the "Amended Agreement") with the Reporting
Persons. Pursuant to the Amended Agreement, the Company amended the option to
reduce the exercise price from $17.50 per share to $6.00 per share and extended
the initial exercise date on all 1,250,000 shares to April 1, 2000. The option
was subject to earlier exercise upon a Change of Control (as defined) of the
Company or upon the average closing price for a share of Common Stock equaling
$17.50 or more for a 10 trading day period. Based on the average closing price
of the Common Stock for the 10 trading day period ended December 8, 1998, the
option became exercisable in full on that date.
The Company has registered the shares of Common Stock
issuable upon exercise of the option under the Securities Act of 1933 and has
agreed to use its best efforts to keep such registration statement effective
during the term of the option.
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The Reporting Persons reserve the right to acquire additional
shares of Common Stock at any time and from time to time in public or private
transactions, whether from third parties or otherwise. Likewise, the Reporting
Persons reserve the right to dispose of any or all of the shares in whole or in
part, in public or private transactions, whether to third parties or otherwise.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) and (b) The response to Item 4 is incorporated herein. The
Reporting Persons currently beneficially own within
the meaning of Rule 13d-3, by virtue of their
ownership of the option, an aggregate of 1,250,000
shares of Common Stock, representing approximately
5.63% of the issued and outstanding shares of Common
Stock (assuming exercise in full of the option),
based on the 20,943,750 shares of Common Stock
issued and outstanding as of November 13, 1998 as
reported in the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 1998. KBTF
will have sole voting and dispositive power with
respect to the shares of Common Stock acquired upon
exercise of the option. Messrs. Kasowitz and Benson,
by virtue of their relationship to KBTF (as
disclosed in Item 2), may be deemed to beneficially
own within the meaning of Rule 13d-3 the shares of
Common Stock acquired by KBTF upon exercise of the
option. Each of Messrs. Kasowitz and Benson
disclaims beneficial ownership of such shares for
all other purposes.
(c), (d) and (e) None or not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
See the information set forth under "Item. 4 Purpose of the
Transaction."
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 1 Amended and Restated Stock Option Agreement, dated
as of October 12, 1998, by and between the Company
and the Reporting Persons (incorporated by reference
to Exhibit 10.4 of the Quarterly Report on Form 10-Q
of the Company for the quarter ended September 30,
1998).
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: December 18, 1998
KASOWITZ, BENSON, TORRES & FRIEDMAN LLP
By: /s/ Marc E. Kasowitz
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Name: Marc E. Kasowitz
Title: Managing Partner
/s/ Marc E. Kasowitz
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Marc E. Kasowitz
/s/ Daniel R. Benson
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Daniel R. Benson
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