<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------
SCHEDULE 13D/A
UNDER THE SECURITIES EXCHANGE ACT OF 1934
--------------------------
FACTORY 2-U STORES, INC.
(Name of Issuer)
--------------------------
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
--------------------------
306889403
(Cusip Number)
--------------------------
DAVID W. BERNSTEIN, ESQ.
ROGERS & WELLS LLP
200 PARK AVENUE
NEW YORK, NEW YORK 10166
(212) 878-8000
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
--------------------------
JANUARY 4, 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(b)(3) or (4), check the following box / /.
Page 1 of 15 Pages
Exhibit Index at Page
<PAGE>
- ------------------- ------------------
CUSIP No. 306889403 13D Page 2 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
THREE CITIES FUND II, L.P.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) / /
(b) /X/
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCES OF FUNDS
OO - Partner Contributions
- --------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 0
UNITS -----------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY
EACH 1,506,531
REPORTING -----------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
-----------------------------------------------
10. SHARED DISPOSITIVE POWER
1,506,531
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,044,844
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
<PAGE>
- ------------------- ------------------
CUSIP No. 306889403 13D Page 3 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
THREE CITIES ASSOCIATES, L.P.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) / /
(b) /X/
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCES 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 ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 0
UNITS -----------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY
EACH 1,506,531
REPORTING -----------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
-----------------------------------------------
10. SHARED DISPOSITIVE POWER
1,506,531
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,044,844
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
<PAGE>
- ------------------- ------------------
CUSIP No. 306889403 13D Page 4 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
THREE CITIES RESEARCH, INC.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) / /
(b) /X/
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCES 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 ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 0
UNITS -----------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY
EACH 4,044,844
REPORTING -----------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
-----------------------------------------------
10. SHARED DISPOSITIVE POWER
4,044,844
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,044,844
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
<PAGE>
- ------------------- ------------------
CUSIP No. 306889403 13D Page 5 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
THREE CITIES OFFSHORE II C.V.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) / /
(b) /X/
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCES OF FUNDS
OO - Partner Contributions
- --------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
NETHERLANDS ANTILLES
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 0
UNITS -----------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY
EACH 2,538,313
REPORTING -----------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
-----------------------------------------------
10. SHARED DISPOSITIVE POWER
2,538,313
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,044,844
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
<PAGE>
- ------------------- ------------------
CUSIP No. 306889403 13D Page 6 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
THREE CITIES OFFSHORE ASSOCIATES, N.V.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) / /
(b) /X/
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCES 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 ORGANIZATION
NETHERLANDS ANTILLES
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 0
UNITS -----------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY
EACH 2,538,313
REPORTING -----------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
-----------------------------------------------
10. SHARED DISPOSITIVE POWER
2,538,313
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,044,844
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
<PAGE>
- ------------------- ------------------
CUSIP No. 306889403 13D Page 7 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
TCA, N.V.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) / /
(b) /X/
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCES 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 ORGANIZATION
Netherland Antilles
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 0
UNITS -----------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY
EACH 2,538,313
REPORTING -----------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
-----------------------------------------------
10. SHARED DISPOSITIVE POWER
2,538,313
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,044,844
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
<PAGE>
- ------------------- ------------------
CUSIP No. 306889403 13D Page 8 of 15 Pages
- ------------------- ------------------
- --------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
THREE CITIES FUND II, L.P.
- --------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) / /
(b) /X/
- --------------------------------------------------------------------------------
3. SEC USE ONLY
- --------------------------------------------------------------------------------
4. SOURCES 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 ORGANIZATION
U.S.A.
- --------------------------------------------------------------------------------
7. SOLE VOTING POWER
NUMBER OF 0
UNITS -----------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY
EACH 2,538,313
REPORTING -----------------------------------------------
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
-----------------------------------------------
10. SHARED DISPOSITIVE POWER
2,538,313
- --------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,044,844
- --------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES / /
- --------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.5%
- --------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
<PAGE>
CUSIP No. 306889403
AMENDMENT NO. 2 TO SCHEDULE 13Ds
This Amendment No. 2 amends and supplements Schedule 13Ds, filed on January
22, 1997, and Amendments No. 1 to those Schedule 13Ds, filed on April 4, 1997
(together the "Schedule 13D") in the following respects only:
ITEM 1. SECURITY AND ISSUER.
Item 1 is amended by adding the following:
On November 24, 1997, by reason of a merger of Company with a wholly owned
subsidiary, the name of the Company was changed to "Factory 2-U Stores, Inc."
ITEM 2 . IDENTITY AND BACKGROUND.
Item 2 is amended and restated in its entirety to be as follows:
(a)-(c) The persons (the "Reporting Persons") filing this statement are
Three Cities Fund II L.P., a Delaware limited partnership ("Fund II"), TCR
Associates, L.P., a Delaware limited partnership ("TCR Associates"), Three
Cities Offshore II C.V., a Netherlands Antilles limited partnership ("Offshore
II"), TCR Offshore Associates L.P., a Netherlands Antilles limited partnership
("TCR Offshore"), Three Cities Associates, N.V., a Netherlands Antilles
corporation ("TCA, N.V."), J. William Uhrig ("Uhrig"), and Three Cities
Research, Inc., a Delaware corporation ("Research"). Fund II and Offshore II are
collectively referred to as the "Three Cities Funds."
FUND II
Fund II is a Delaware limited partnership, formed to invest in securities
to be selected by its investment committee. The principal business address of
Fund II, which also serves as its principal office, is c/o Three Cities
Research, Inc., 650 Madison Avenue, New York, New York 10022. The information
about TCR Associates, the sole general partner of Fund II, required by
Instruction C to Schedule 13D is set forth below.
TCR ASSOCIATES
TCR Associates is a Delaware limited partnership, the principal business of
which is serving as the sole general partner of Fund II. The principal business
address of TCR Associates, which also serves as its principal office, is c/o
Three Cities Research, Inc., 650 Madison Avenue, New York, New York 10022. The
information about Research, the sole general partner of TCR Associates, required
by Instruction C to Schedule 13D is set forth below.
OFFSHORE II
Offshore II is a Netherlands Antilles partnership, formed to invest in
securities to be selected by its investment committee. The principal business
address of Offshore II, which also serves as its principal office, is
Caracasbaaiweg 201, P.O. Box 6085, Curacao, Netherlands Antilles. The
information about TCR Offshore, the sole general partner of Offshore II,
required by Instruction C to Schedule 13D is set forth below.
TCR OFFSHORE
TCR Offshore is a Netherlands Antilles limited partnership, the principal
business of which is serving as the general partner of Offshore II. The
principal business address of TCR Offshore, which also serves as its principal
office, is Caracasbaaiweg 201, P.O. Box 6085, Curacao, Netherlands Antilles. The
information about TCA N.V., the sole general partner of TCR Offshore, required
by Instruction C to Schedule 13D is set forth below.
<PAGE>
TCA, N.V.
TCA, N.V. is a Netherlands Antilles corporation, the principal business of
which is serving as the general partner of TCR Offshore. The principal business
address of TCA, N.V., which also serves as its principal office, is
Caracasbaaiweg 201, P.O. Box 6085, Caracas, Netherlands Antilles. The
information about J. William Uhrig, the sole officer, director and stockholder
of TCA, N.V., required by Instruction C to Schedule 13D is set forth below.
UHRIG
J. William Uhrig is an individual who is the sole officer, director and
stockholder of TCA, N.V. The name, residence or business address, and present
principal occupation or employment of Mr. Uhrig is as follows:
<TABLE>
<CAPTION>
Residence or Principal Occupation
Name Business Address or Employment
- ---- ---------------- -------------
<S> <C> <C>
J. William Uhrig c/o Three Cities Research, Inc. Secretary and a Managing Director of Three
650 Madison Avenue Cities Research, Inc.
New York, NY 10022
</TABLE>
RESEARCH
Research is a Delaware corporation which serves as the sole general partner
of TCR Associates. Research is also the advisor to the Three Cities Funds and,
pursuant to a management agreement with the general partner of each of the Three
Cities Funds, Research has voting and dispositive power over the shares of
Common Stock reported as beneficially owned by the Three Cities Funds on this
Schedule 13D. The principal business address of Research is 650 Madison Avenue,
New York, NY 10022. The name, residence or business address, and present
principal occupation or employment of each executive officer and director of
Research is as follows:
<TABLE>
<CAPTION>
Residence or Principal Occupation
Name Business Address or Employment
- ---- ---------------- -------------
<S> <C> <C>
Willem F.P. de Vogel c/o Three Cities Research, Inc. President and a Managing Director of Three
650 Madison Avenue Cities Research, Inc.
New York, NY 10022
J. William Uhrig c/o Three Cities Research, Inc. Secretary and a Managing Director of Three
650 Madison Avenue Cities Research, Inc.
New York, NY 10022
Thomas G. Weld c/o Three Cities Research, Inc. Treasurer and a Managing Director of Three
650 Madison Avenue Cities Research, Inc.
New York, NY 10022
</TABLE>
(d) None of the entities or persons identified in this Item 2 has, during
the last five years, been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors).
(e) None of the entities or persons identified in this Item 2 has, during
the last five years, 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.
(f) Each individual named in this Item 2 is a citizen of the United States
of America, except that Willem F.P. de Vogel is a citizen of the Kingdom of the
Netherlands.
2
<PAGE>
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Item 3 is amended by adding the following:
Immediately before November 24, 1997, Offshore II owned 390,979 shares of
Common Stock and 11,060 shares of Series B Junior Convertible, Exchangeable
Preferred Stock ("Series B Preferred") and Fund II owned 231,198 shares of
Common Stock and 6,666 shares of Series B Preferred. By reason of a merger of a
wholly owned subsidiary into the Company, which became effective on November 24,
1998, Offshore II became the owner of 2,071,541 shares of Common Stock and Fund
II became the owner of 1,224,963 shares of Common Stock. Immediately following
the merger, there were a total of 11,275,381 shares of Common Stock outstanding.
Therefore, the shares Offshore II owned constituted 18.37% of the outstanding
Common Stock and the shares Fund II owned constituted 10.86% of the outstanding
Common Stock. On December 15, 1998 and January 4, 1999, by exercising Rights
issued by the Company (including an over subscription privilege included in
those Rights), Offshore II acquired a total of 466,772 shares of Common Stock
for $6,068,036 and Fund II acquired a total of 281,568 shares of Common Stock
for $3,660,384. Because the Company issued a total of 800,000 shares upon
exercise of Rights, following completion of the Rights offering, the Company had
12,075,381 shares outstanding, the shares owned by Offshore II constituted
21.02% of those shares, the shares owned by Fund II constituted 12.48% of those
shares, and the shares owned by Offshore II and Fund II together constituted
33.50% of those shares.
Offshore II and Fund II used contributions from their respective partners
to fund the purchases of shares through exercise of Rights.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Item 5 is amended and restated in its entirety as follows:
(a)
FUND II
Fund II may, pursuant to Rule 13d-5 under the Securities Exchange Act of
1934, as amended (the "Exchange Act"), be deemed to be the beneficial owner of
4,044,844 shares of Common Stock, which constitute approximately 33.5% of the
12,075,381 shares of Common Stock which are outstanding. The 4,044,844 shares
include 1,506,531 shares (12.48% of the outstanding shares) directly owned by
Fund II and 2,538,313 shares (21.02% of the outstanding shares) directly owned
by Offshore II.
TCR ASSOCIATES
In its capacity as the sole general partner of Fund II, TCR Associates may,
pursuant to Rules 13d-3 and 13d-5 under the Exchange Act, be deemed to be the
beneficial owner of 4,044,844 shares of Common Stock, which constitute
approximately 33.5% of the 12,075,381 shares of Common Stock which are
outstanding.
OFFSHORE II
Offshore II may, pursuant to Rule 13d-5 under the Exchange Act, be deemed
to be the beneficial owner of 4,044,844 shares of Common Stock, which constitute
approximately 33.5% of the 12,075,381 shares of Common Stock which are
outstanding. The 4,044,844 shares include 2,538,313 shares (21.02% of the
outstanding shares) directly owned by Offshore II and 1,506,531 shares (12.48%
of the outstanding shares) directly owned by Fund II.
TCR OFFSHORE
In its capacity as the sole general partner of Offshore II, TCR Offshore
may, pursuant to Rules 13d-3 and 13d-5 under the Exchange Act, be deemed to be
the beneficial owner of 4,044,844 shares of Common
3
<PAGE>
Stock, which constitute approximately 33.5% of the 12,075,381 shares of Common
Stock which are outstanding.
TCA N.V.
In its capacity as the sole general partner of TCR Offshore, TCA N.V. may,
pursuant to Rules 13d-3 and 13d-5 under the Exchange Act, be deemed to be the
beneficial owner of 4,044,844 shares of Common Stock, which constitute
approximately 33.5% of the 12,075,381 outstanding shares of Common Stock.
UHRIG
As the sole stockholder, the President and the only director of TCA, N.V.,
which is the sole general partner of TCR Offshore, which in turn is the sole
general partner of Offshore II, Uhrig may, pursuant to Rules 13d-3 and 13d-5
under the Exchange Act, be deemed to be the beneficial owner of 4,044,844 shares
Common Stock, which constitute approximately 33.5% of the 12,075,381 outstanding
shares of Common Stock.
THREE CITIES RESEARCH
As the investment advisor to Offshore II and Fund II, with the power to
direct voting by both Offshore II and Fund II and to direct the disposition of
assets by both Fund II and Offshore II, Three Cities Research may, pursuant to
Rule 13d-3 under the Exchange Act, be deemed to be the beneficial owner of
4,044,844 shares of Common Stock, which constitute approximately 33.5% of the
12,075,381 outstanding shares of Common Stock.
(b)
Fund II and TCR Associates may be deemed to share the power to vote or
direct the vote, and to dispose of or direct the disposition of, 1,506,531
shares of Common Stock.
Offshore II, TCR Offshore, TCA, N.V. and Uhrig may be deemed to share the
power to vote or direct the vote, and to dispose of or direct the disposition
of, 2,538,313 shares of Common Stock.
Research may be deemed to share the power to vote or direct the vote, and
to dispose of or direct the disposition of, 4,044,844 shares of Common Stock.
(c)
On November 24, 1997, the Company merged with a wholly owned subsidiary in
a transaction in which (i) each outstanding share of common stock became .30133
shares of a new Common Stock, (ii) each share of Series A Convertible Preferred
Stock became one share of the new Common Stock, and (iii) each share of Series B
Preferred became 173.33 shares of the new Common Stock. Prior to that merger,
Offshore II owned 390,979 shares of Common Stock and 11,060 shares of Series B
Preferred and Fund II owned 231,198 shares of common stock and 6,666 shares of
Series B Preferred. By reason of the merger, Offshore II became the owner of
2,071,541 shares of the new Common Stock and Fund II became the owner of
1,224,963 shares of Common Stock.
On October 21, 1998, the Company issued to the holders of its pre-merger
stock Rights entitling them to purchase a total of 800,000 shares of post-merger
Common Stock for $13 per share in cash. If a holder of Rights exercised the
Rights, the Holder was entitled to over subscribe to purchase shares that were
offered to holders of Rights but not purchased because the Rights were not
exercised. On December 15, 1998, Offshore II purchased 144,082 shares of Common
Stock for $1,873,066 through exercise of Rights and Fund II purchased 90,752
shares of Common Stock for $1,179,776 through exercise of Rights. Subsequently,
on January 4, 1998, Offshore II purchased 322,690 shares of Common Stock for
$4,194,970 through exercise of the over subscription privilege included in its
Rights and Fund II purchased 190,816
4
<PAGE>
shares of Common Stock for $2,480,608 through exercise of the over subscription
privilege included in its Rights.
Except as described above, none of the persons named in Item 2 purchased
any shares of the Company during the 60 days preceding the date of this Schedule
13D.
(d)
Fund II has the right to receive the dividends from, and the proceeds of
disposition of, 1,506,531 shares of Common Stock. Offshore II has the right to
receive the dividends from, and the proceeds of disposition of, 2,538,313 shares
of Common Stock.
5
<PAGE>
SIGNATURES
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: January 31, 1999
THREE CITIES FUND II, L.P.
By: TCR Associates, L.P.,
its General Partner
By: Three Cities Research, Inc.,
its General Partner
By: /s/ Willem F.P. de Vogel
---------------------------
Name: Willem F.P. de Vogel
Title: President
By: TCR ASSOCIATES, L.P.
By: Three Cities Research, Inc.
its General Partner
By: /s/ Willem F.P. de Vogel
---------------------------
Name: Willem F.P. de Vogel
Title: President
THREE CITIES OFFSHORE II C.V.
By: TCR Offshore Associates, L.P.
its General Partner
By: Three Cities Associates, N.V.,
its General Partner
By: /s/ J. William Uhrig
---------------------------
Name: J. William Uhrig
Title: President
TCR OFFSHORE ASSOCIATES, L.P.
By: Three Cities Associates, N.V.
its General Partner
By: /s/ J. William Uhrig
---------------------------
Name: J. William Uhrig
Title: President
THREE CITIES ASSOCIATES, N.V.
By: /s/ J. William Uhrig
---------------------------
Name: J. William Uhrig
Title: President
6
<PAGE>
THREE CITIES RESEARCH, INC.
By: /s/ Willem F.P. de Vogel
---------------------------
Name: Willem F.P. de Vogel
Title: President
7
