SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 20)(1)
GATEWAY INDUSTRIES, INC.
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(Name of issuer)
COMMON STOCK
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(Title of class of securities)
367631108
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(CUSIP number)
STEVEN WOLOSKY, ESQUIRE
OLSHAN GRUNDMAN FROME & ROSENZWEIG LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
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(Name, address and telephone number of person
authorized to receive notices and communications)
September 29, 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 Rule 13d-1(b)(3) or (4), check the following box
/ /.
Note. six copies of this statement, including all exhibits,
should be filed with the Commission. See Rule 13d-1(a) for other parties to whom
copies are to be sent.
(Continued on following pages)
(Page 1 of 6 Pages)
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(1) 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 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>
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CUSIP No. 367631108 13D Page 2 of 6 Pages
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1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
STEEL PARTNERS II, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
PF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
DELAWARE
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,558,608
OWNED BY
EACH
REPORTING
PERSON WITH
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8 SHARED VOTING POWER
-0-
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,558,608
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10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,558,608
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
43.4%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
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CUSIP No. 367631108 13D Page 3 of 6 Pages
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1 NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
WARREN LICHTENSTEIN
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOU000 OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
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6 CITIZENSHIP OR PLACE OR ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,640,8932
OWNED BY
EACH
REPORTING
PERSON WITH
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8 SHARED VOTING POWER
- 0 -
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9 SOLE DISPOSITIVE POWER
1,640,893(2)
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10 SHARED DISPOSITIVE POWER
- 0 -
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,640,893(2)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.2%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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(2) Includes (i) 1,558,608 Shares owned by Steel Partners II, L.P., an
entity controlled by Mr. Lichtenstein, (ii) 46,952 Shares owned directly by Mr.
Lichtenstein and (iii) 35,333 Shares underlying stock options that may be
acquired within 60 days hereof.
<PAGE>
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CUSIP No. 367631108 13D Page 4 of 6 Pages
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This constitutes Amendment No. 20 ("Amendment No. 20") to
Schedule 13D filed by the undersigned on or about August 4, 1995 (the "Schedule
13D"). Except as specifically amended by this Amendment No. 20, the Schedule
13D, as amended, remains in full force and effect.
Item 2(b) is amended to read in its entirety as follows:
Item 2. Identity and Background.
(b) The principal business address of each Reporting Person is
150 E. 52nd Street, 21st Floor, New York, New York 10022.
Item 3 is amended to read in its entirety as follows:
Item 3. Source and Amount of Funds or Other Consideration.
The aggregate purchase price of the 1,558,608 Shares owned by
Steel Partners II is $3,660,278. The Shares owned by Steel Partners II were
acquired with partnership funds.
The aggregate purchase price for the 46,952 Shares owned by
Mr. Lichtenstein is $67,081.50, and came from personal funds.
Items 5(a) and 5(c) are amended to read as follows:
Item 5. Interest in Securities of the Issuer.
(a) The aggregate percentage of Shares of Common Stock
reported owned by each person named herein is based upon 3,592,024 Shares
outstanding, which is the total number of Shares of Common Stock outstanding as
reported in the Issuer's Form 10-QSB for the quarter ended June 30, 1998. As of
the close of business on September 29, 1998, Steel Partners II beneficially owns
1,558,608 Shares of Common Stock, constituting approximately 43.4% of the Shares
outstanding. Mr. Lichtenstein beneficially owns 1,640,893 Shares, representing
approximately 45.2% of the Shares outstanding. Mr. Lichtenstein has sole voting
and dispositive power with respect to the 82,285 Shares owned by him and the
1,558,608 Shares owned by Steel Partners II by virtue of his authority to vote
and dispose of such Shares.
<PAGE>
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CUSIP No. 367631108 13D Page 5 of 6 Pages
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(b) No Reporting Person had engaged in any transaction in the
share of the Issuer's Common Stock within the past 60 days, except that Steel
Partners II made the following purchases:
Purchase Price
Date of Purchase No. Of Shares Per share
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9/29/98 200,000 $1.78
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CUSIP No. 367631108 13D Page 6 of 6 Pages
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SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: October 5, 1998 STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.,
General Partner
By:/s/ Warren G. Lichtenstein
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Warren G. Lichtenstein,
Chief Executive Officer
/s/ Warren G. Lichtenstein
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WARREN G. LICHTENSTEIN
