<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
(Rule 13d-102)
Information Statement Pursuant to Rules 13d-1 and 13d-2
Under the Securities Exchange Act of 1934
(Amendment No. __)*
Komag, Incorporated
--------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
--------------------------------------------------------------------------------
(Title of Class of Securities)
500453105
---------------------------------------
(CUSIP Number)
June 12, 2000
-----------------------------------------------------------
Date of Event Which Requires Filing of the Statement
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[x ] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
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 16
<PAGE>
CUSIP NO. 500453105 13G Page 2 of 16 Pages
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO OF ABOVE PERSON
Name Citadel Limited Partnership
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4 Illinois limited partnership
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
$9,281,730.84 in principal amount of Convertible Notes
OWNED BY plus accrued interest (convertible into 3,741,037
shares of Common Stock)/1//2/
EACH Warrants to purchase shares of Common Stock
(exercisable into 226,744 shares of Common
REPORTING Stock)/2/
1,322,600 shares of Common Stock
PERSON -----------------------------------------------------------
SOLE DISPOSITIVE POWER
WITH 7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2,
2000, plus the shares of Common Stock issuable upon the conversion of the
Convertible Notes and exercise of the Warrants referred to in Row 6
above.)
------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
PN; HC
------------------------------------------------------------------------------
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ See Footnote 2 in Item 4.
Page 2 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 3 of 16 Pages
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO OF ABOVE PERSON
Name GLB Partners, L.P.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4 Delaware limited partnership
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
$9,281,730.84 in principal amount of Convertible Notes
OWNED BY plus accrued interest (convertible into 3,741,037
shares of Common Stock)/1//2/
EACH Warrants to purchase shares of Common Stock
(exercisable into 226,744 shares of Common
REPORTING Stock)/2/
1,322,600 shares of Common Stock
PERSON -----------------------------------------------------------
SOLE DISPOSITIVE POWER
WITH 7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2,
2000, plus the shares of Common Stock issuable upon the conversion of the
Convertible Notes and exercise of the Warrants referred to in Row 6
above.)
------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
PN; HC
------------------------------------------------------------------------------
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ See Footnote 2 in Item 4.
Page 3 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 4 of 16 Pages
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO OF ABOVE PERSON
Name Citadel Investment Group, L.L.C.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4 Delaware limited liability company
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
$9,281,730.84 in principal amount of Convertible Notes
OWNED BY plus accrued interest (convertible into 3,741,037
shares of Common Stock)/1//2/
EACH Warrants to purchase shares of Common Stock
(exercisable into 226,744 shares of Common
REPORTING Stock)/2/
1,322,600 shares of Common Stock
PERSON -----------------------------------------------------------
SOLE DISPOSITIVE POWER
WITH 7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2,
2000, plus the shares of Common Stock issuable upon the conversion of the
Convertible Notes and exercise of the Warrants referred to in Row 6
above.)
------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
OO; HC
------------------------------------------------------------------------------
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ See Footnote 2 in Item 4.
Page 4 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 5 of 16 Pages
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO OF ABOVE PERSON
Name Kenneth Griffin
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
U.S. Citizen
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
$9,281,730.84 in principal amount of Convertible Notes
OWNED BY plus accrued interest (convertible into 3,741,037
shares of Common Stock)/1//2/
EACH Warrants to purchase shares of Common Stock
(exercisable into 226,744 shares of Common
REPORTING Stock)/2/
1,322,600 shares of Common Stock
PERSON -----------------------------------------------------------
SOLE DISPOSITIVE POWER
WITH 7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2,
2000, plus the shares of Common Stock issuable upon the conversion of the
Convertible Notes and exercise of the Warrants referred to in Row 6
above.)
------------------------------------------------------------------------------
12. TYPE OF REPORTING PERSON*
IN
------------------------------------------------------------------------------
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ See Footnote 2 in Item 4.
Page 5 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 6 of 16 Pages
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Wellington Partners Limited Partnership
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Illinois limited partnership
U.S.A.
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
$9,281,730.84 in principal amount of Convertible
OWNED BY Notes plus accrued interest (convertible into
3,741,037 shares of Common Stock)/1//2/
EACH Warrants to purchase shares of Common Stock
(exercisable into 226,744 shares of Common
REPORTING Stock)/2/
1,322,600 shares of Common Stock
PERSON -----------------------------------------------------------
SOLE DISPOSITIVE POWER
WITH 7
0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2,
2000, plus the shares of Common Stock issuable upon the conversion of the
Convertible Notes and exercise of the Warrants referred to in Row 6
above.)
------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
PN; HC
------------------------------------------------------------------------------
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ See Footnote 2 in Item 4.
Page 6 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 7 of 16 Pages
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Olympus Securities, Ltd.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Bermuda company
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
$9,281,730.84 in principal amount of Convertible Notes
OWNED BY plus accrued interest (convertible into
3,741,037 shares of Common Stock)/1//2/
EACH Warrants to purchase shares of Common Stock
(exercisable into 226,744 shares of Common
REPORTING Stock)/2/
1,322,600 shares of Common Stock
-----------------------------------------------------------
PERSON SOLE DISPOSITIVE POWER
7
WITH 0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2,
2000, plus the shares of Common Stock issuable upon the conversion of the
Convertible Notes and exercise of the Warrants referred to in Row 6
above.)
------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
CO
------------------------------------------------------------------------------
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ See Footnote 2 in Item 4.
Page 7 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 8 of 16 Pages
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Kensington Global Strategies Fund, Ltd.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Bermuda company
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
$9,281,730.84 in principal amount of Convertible
OWNED BY Notes plus accrued interest (convertible into
3,741,037 shares of Common Stock)/1//2/
EACH Warrants to purchase shares of Common Stock
(exercisable into 226,744 shares of Common
REPORTING Stock)/2/
1,322,600 shares of Common Stock
-----------------------------------------------------------
PERSON SOLE DISPOSITIVE POWER
7
WITH 0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2,
2000, plus the shares of Common Stock issuable upon the conversion of the
Convertible Notes and exercise of the Warrants referred to in Row 6
above.)
------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
Co; HC
------------------------------------------------------------------------------
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ See Footnote 2 in Item 4.
Page 8 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 9 of 16 Pages
------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Name Nelson Partners Ltd.
------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
------------------------------------------------------------------------------
SEC USE ONLY
3
------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
4
Cayman Islands company
------------------------------------------------------------------------------
SOLE VOTING POWER
5
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 6
$9,281,730.84 in principal amount of Convertible
OWNED BY Notes plus accrued interest (convertible into
3,741,037 shares of Common Stock)/1//2/
EACH Warrants to purchase shares of Common Stock
(exercisable into 226,744 shares of Common
REPORTING Stock)/2/
1,322,600 shares of Common Stock
-----------------------------------------------------------
PERSON SOLE DISPOSITIVE POWER
7
WITH 0
-----------------------------------------------------------
SHARED DISPOSITIVE POWER
8
See Row 6 above.
------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9
See Row 6 above.
------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10
[_]
------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
11
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2,
2000, plus the shares of Common Stock issuable upon the conversion of the
Convertible Notes and exercise of the Warrants referred to in Row 6
above.)
------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
CO
------------------------------------------------------------------------------
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ See Footnote 2 in Item 4.
Page 9 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 10 of 16 Pages
Item 1(a) Name of Issuer: KOMAG, INCORPORATED
1(b) Address of Issuer's Principal Executive Offices:
1710 Automation Parkway
San Jose, California 95131
Item 2(a) Name of Person Filing
Item 2(b) Address of Principal Business Office
Item 2(c) Citizenship
Citadel Limited Partnership
225 W. Washington
9th Floor
Chicago, Illinois 60606
Illinois limited partnership
GLB Partners, L.P.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Delaware limited partnership
Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Delaware limited liability company
Kenneth Griffin
225 W. Washington
9th Floor
Chicago, Illinois 60606
U.S. Citizen
Wellington Partners Limited Partnership
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9th Floor
Chicago, Illinois 60606
Illinois limited partnership
Page 10 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 11 of 16 Pages
Olympus Securities, Ltd.
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9/th/ Floor
Chicago, Illinois 60606
Bermuda company
Kensington Global Strategies Fund, Ltd.
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9/th/ Floor
Chicago, Illinois 60606
Bermuda company
Nelson Partners Ltd.
c/o Citadel Investment Group, L.L.C.
225 W. Washington
9/th/ Floor
Chicago, Illinois 60606
Cayman Islands company
2(d) Title of Class of Securities:
Common Stock, par value $0.01 per share
2(e) CUSIP Number: 500453105.
Item 3 If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b) or
(c), check whether the person filing is a:
(a) [__] Broker or dealer registered under Section 15 of the
Exchange Act;
(b) [__] Bank as defined in Section 3(a)(6) of the Exchange Act;
(c) [__] Insurance company as defined in Section 3(a)(19) of the
Exchange Act;
(d) [__] Investment company registered under Section 8 of the
Investment Company Act;
(e) [__] An investment adviser in accordance with Rule
13d-1(b)(1)(ii)(E);
Page 11 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 12 of 16 Pages
(f) [__] An employee benefit plan or endowment fund in accordance
with Rule 13d-1(b)(1)(ii)(F);
(g) [__] A parent holding company or control person in accordance
with Rule 13d-1(b)(ii)(G);
(h) [__] A savings association as defined in Section 3(b) of the
Federal Deposit Insurance Act;
(i) [__] A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the
Investment Company Act;
(j) [__] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
If this statement is filed pursuant to Rule 13d-1(c), check this box.
[x]
Item 4 Ownership:
CITADEL LIMITED PARTNERSHIP
GLB PARTNERS, L.P.
CITADEL INVESTMENT GROUP, L.L.C.
KENNETH GRIFFIN
WELLINGTON PARTNERS LIMITED PARTNERSHIP
OLYMPUS SECURITIES, LTD.
KENSINGTON GLOBAL STRATEGIES FUND, LTD.
NELSON PARTNERS LTD.
(a) Amount beneficially owned:
$9,281,730.84 in principal amount of Convertible Notes plus accrued interest
(convertible into 3,741,037 shares of Common Stock)./1///2/
Warrants to purchase shares of Common Stock (exercisable into 226,744 shares of
Common stock)./2/
1,322,600 shares of Common Stock.
(b) Percent of Class:
Approximately 7.5% as of the date of filing of this statement. (Based on
66,772,819 shares of Common Stock issued and outstanding as of July 2, 2000,
plus the shares of Common Stock issuable upon the conversion of the Convertible
Notes and exercise of the Warrants referred to in item (a) above.)
Page 12 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 13 of 16 Pages
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote:
0
(ii) shared power to vote or to direct the vote:
See item (a) above.
(iii) sole power to dispose or to direct the disposition of:
0
(iv) shared power to dispose or to direct the disposition of:
See item (a) above.
/1/ The Convertible Notes accrue interest at a rate of 8.0% per annum from the
date of issuance, payable in Common Stock, upon the earlier of conversion,
redemption or maturity.
/2/ The securities reported herein include (i) 1,322,600 shares of the Company's
common stock, par value $0.01 per share (the "Common Stock"), (ii) shares of
Common Stock that the Reporting Persons may acquire in the future through the
conversion of $9,281,730.84 in principal amount of Convertible Notes (the
"Convertible Notes") plus accrued interest on such principal amount, which may
be converted by the Reporting Persons at any time prior to and including June 2,
2005 (the "Maturity Date"), into shares of the Common Stock at the conversion
price equal to $2.53, subject to adjustment upon certain defaults and dilutive
events (the "Conversion Price") and (iii) shares of Common stock that the
Reporting Persons may acquire in the future through the exercise by the
Reporting Persons of warrants (the "Warrants") to purchase up to 226,744 shares
of Common Stock at the exercise price equal to $2.1281. The Warrants were issued
on June 1, 2000. Warrants to purchase 64,784 shares of Common Stock may be
exercised at any time prior to 5:00 p.m. Los Angeles Time, on June 1, 2011,
unless terminated earlier under certain circumstances, and Warrants to purchase
161,960 shares of Common Stock may be exercised at any time prior to 5:00 p.m.
Los Angeles Time, on June 1, 2010. The Convertible Notes were issued on June 2,
2000.
The Convertible Notes accrue interest at the rate of 8% per annum from June 2,
2000, payable in Common Stock, upon the earlier of conversion, redemption or
maturity. As of August 30, 2000, the Convertible Notes had accrued interest of
approximately $183,092.
Pursuant to the terms of the Convertible Notes the Company will not be required
to issue more than approximately 13,204,202 shares of Common Stock to the
Reporting Persons upon conversion of the Convertible Notes until the earlier of
the date the Company receives shareholder approval for issuance of the Common
Stock upon the conversion of the Convertible Notes and the
Page 13 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 14 of 16 Pages
date such issuance would not violate the rules of the principal securities
market or exchange on which the Common Stock is designated or listed.
In addition the Reporting Persons have the right to purchase up to an additional
$35,700,000 in principal amount of convertible notes by giving notice to the
Company at any time prior to June 2, 2005 and upon paying the purchase price for
each $1,000 of principle amount of the Convertible Notes by exchanging
$1,428.57142857 in principal and accrued and unpaid interest of the Company's
restructured bank debt issued pursuant to that certain Loan Restructuring
Agreement by and among the Company, Bank Boston, N.A. and the banks party
thereto. The Conversion Price for such additional convertible notes will be
equal to 115% of the average of the closing sale prices of the Common Stock for
the five consecutive trading days immediately preceding the date that the
Reporting Person gives notice of its intention to buy such additional
convertible notes.
Pursuant to the terms of the Convertible Notes, the Reporting Persons cannot be
the "beneficial owners" of more than 10.00% of the Common Stock within the
meaning of Rule 13d-1 of the Securities Exchange Act of 1934.
Item 5 Ownership of Five Percent or Less of a Class:
Not Applicable.
Item 6 Ownership of More than Five Percent on Behalf of Another Person:
Not Applicable.
Item 7 Identification and Classification of the Subsidiary which Acquired
the Security Being Reported on by the Parent Holding Company:
See Item 2 above.
Item 8 Identification and Classification of Members of the Group:
Not Applicable.
Item 9 Notice of Dissolution of Group:
Not Applicable.
Item 10 Certification:
By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were not acquired and are not held for the purpose
of or with the effect of changing or influencing the control of the issuer of
the securities and were not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.
Page 14 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 15 of 16 Pages
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated this 30/th/ day of August, 2000 /s/ Kenneth Griffin
---------------------------------
Kenneth Griffin
CITADEL LIMITED PARTNERSHIP CITADEL INVESTMENT GROUP, L.L.C.
By: GLB Partners, L.P., By: /s/ Kenneth Griffin
its General Partner ---------------------------------
Kenneth Griffin, President
By: Citadel Investment Group, L.L.C.,
its General Partner OLYMPUS SECURITIES, LTD.
By: /s/ Kenneth Griffin By: Citadel Limited Partnership,
--------------------------------- its Trading Manager
Kenneth Griffin, President
GLB PARTNERS, L.P. By: GLB Partners, L.P.,
its General Partner
By: Citadel Investment Group, L.L.C.,
its General Partner By: Citadel Investment Group, L.L.C.,
its General Partner
By: /s/ Kenneth Griffin
--------------------------------- By: /s/ Kenneth Griffin
Kenneth Griffin, President ---------------------------------
Kenneth Griffin, President
WELLINGTON PARTNERS LIMITED NELSON PARTNERS LTD
PARTNERSHIP
By: Citadel Limited Partnership, By: Citadel Limited Partnership,
its General Partner its Trading Manager
By: GLB Partners, L.P., By: GLB Partners, L.P.,
its General Partner its General Partner
By: Citadel Investment Group, L.L.C., By: GLB Partners, L.P.,
its General Partner its General Partner
By: /s/ Kenneth Griffin By: /s/ Kenneth Griffin
--------------------------------- ----------------------------------
Kenneth Griffin, President Kenneth Griffin, President
Page 15 of 16
<PAGE>
CUSIP NO. 500453105 13G Page 16 of 16 Pages
KENSINGTON GLOBAL STRATEGIES
FUND, LTD.
By: Citadel Limited Partnership,
its Trading Manager
By: GLB Partners, L.P.,
its General Partner
By: Citadel Investment Group, L.L.C.,
its General Partner
By: /s/ Kenneth Griffin
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Kenneth Griffin, President
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