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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 5)*
Delphi Information Systems, Inc.
________________________________________________________________________________
(Name of Issuer)
Common Stock, $.10 par value (Name of Issuer)
Director Stock Option (right to buy), par value $.10/share/Redeemable Warrants
________________________________________________________________________________
(Title of Class of Securities)
247171101
_______________________________________________________________
(CUSIP Number)
Mark C. Headrick (612) 335-8683
Coral Group, Inc./60 South 6th Street, Suite 3510, Minneapolis, MN 55402
________________________________________________________________________________
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
1/26/97
_______________________________________________________________
(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 [_].
Check the following box if a fee is being paid with the statement [_]. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
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.
* 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>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 247171101 PAGE 2 OF 11 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
SEC ID 0000924591
Coral Partners II, a limited partnership
(formerly IAI Venture Partners II, a limited partnership)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
6,413,115
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
6,413,115
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
6,413,115
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.17%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN & IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 247171101 PAGE 3 OF 11 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Coral Management Partners II, Limited Partnership
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
6,413,115
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
6,413,115
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
6,413,115
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.17%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN & IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 247171101 PAGE 4 OF 11 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Yuval Almog
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Minnesota
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
164,500
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 6,413,115
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
164,500
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
6,413,115
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
6,577,615
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.58%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN & IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 247171101 PAGE 5 OF 11 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Peter H. McNerney
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Minnesota
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 6,413,115
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
6,413,115
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
6,413,115
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.17%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN & IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 247171101 PAGE 6 OF 11 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Linda L. Watchmaker
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X|
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Minnesota
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 6,413,115
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
6,413,115
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
6,413,115
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
17.17%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN & IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
Item 1. Security and Issuer
- ---------------------------
Security: This amended Schedule 13D, originally filed under the reporting
person of IAI Venture Partners II, a limited partnership, and now filed under
the reporting person of Coral Partners II, a limited partnership, reflects
beneficial ownership of issuer's Common Stock, par value $.10 per share,
Non-Qualified Stock Option Plan for Directors, par value .$10 per share (the "PS
D Stock") (formerly Series A Preferred Stock), Series C Preferred Stock, par
value $.10 per share (the "PS C Stock") and Convertible Promissory Note (the
"Note").
Issuer: Delphi Information Systems, Inc.
3501 Algonquin Road, Suite 500
Rolling Meadows, IL 60008
Item 2. Identity and Background
- -------------------------------
Coral Partners II, a limited partnership ("CP II") (formerly named IAI
Venture Partners II, a limited partnership), with principal offices at 60 South
Sixth Street, Suite 3510, Minneapolis, MN 55402, is in the business of making
venture capital investments in operating companies. The general partner of
Coral Partners II is Coral Management Partners II, Limited Partnership ("CMP
II"), with principal offices at 60 South Sixth Street, Suite 3510, Minneapolis,
MN 55402. The general partners of CMP II are Yuval Almog, Peter McNerney and
Linda Watchmaker.
The following sets forth the names, business addresses, and principal occupation
of each General Partner within CMP II:
<TABLE>
<CAPTION>
Name Address Principal Occupation
- ---- ------- --------------------
<S> <C> <C>
*Yuval Almog 60 South Sixth Street Managing General Partner
Suite 3510
Minneapolis, MN 55402
Peter McNerney 60 South Sixth Street General Partner
Suite 3510
Minneapolis, MN 55402
Linda Watchmaker 60 South Sixth Street General Partner
Suite 3510
Minneapolis, MN 55402
</TABLE>
The following sets forth employees of Coral Group, Inc. ("Coral"), a Delaware
corporation, shareholders of the issuer:
7 of 11
<PAGE>
<TABLE>
<CAPTION>
Name Address Principal Occupation
- ---- ------- --------------------
<S> <C> <C>
**William Baumel 60 South Sixth Street Senior Associate
Suite 3510
Minneapolis, MN 55402
Mark Headrick 60 South Sixth Street Senior Associate
Suite 3510
Minneapolis, MN 55402
</TABLE>
All such individuals are United States citizens.
To the best of the undersigned's knowledge, during the past five years
neither CP II, a partner of CMP II, nor an employee of Coral Group, Inc. has
been convicted in a criminal proceeding (other than traffic violations or
similar misdemeanors) nor been a party to a civil proceeding of a judicial or
administrative body that resulted in judgment or final order regarding
violations of federal or state securities laws.
*Yuval Almog, a General Partner in Coral Management Partners II, Limited
Partnership, with principal offices at 60 South Sixth Street, Suite 3510,
Minneapolis, MN 55402; was elected a non-employee Director of Delphi Information
Systems, Inc. on September 9, 1991, and became Chairman of the Board on
September 17, 1993.
**William Baumel was elected a non-employee Director of Delphi Information
Systems, Inc. on July 15, 1996.
Item 3. Source and Amount of Funds or Other Consideration
- ---------------------------------------------------------
<TABLE>
<CAPTION>
Name Amount of Funds Source
- ---- --------------- ------
<S> <C> <C>
Coral Partners II, $5,413,114.80* Contribution to
a limited partnership capital by limited
partnership
Employee of Coral: Contribution to capital
by personal funds of
Yuval Almog $50,000.00** employee
Contribution to capital
William Baumel $20,000.00** by personal funds of
employee
Mark Headrick $2,035.80*** Contribution to capital
by personal funds of
employee
</TABLE>
8 of 11
<PAGE>
* Includes Common Stock and Redeemable Warrants acquired upon the conversion of
Series D Preferred Stock, Series C Preferred Stock and Convertible Promissory
Note investments.
** Includes Common Stock and Redeemable Warrants acquired upon the purchase of
units sold by the Issuer.
*** Includes Common Stock acquired upon conversion of Series D Preferred Stock
investment.
None of the funds used in purchasing the shares were borrowed or otherwise
obtained for the purpose of acquiring, holding, trading or voting the
securities.
Item 4. Purpose of Transaction
- ------------------------------
All the entities identified in item No. 3 (the "Investors") (except Mark
Headrick who does not own Redeemable Warrants) purchased the Common Stock and
Redeemable Warrants for investment purposes. The entities acquired the Common
Stock and Redeemable Warrants through the conversion of: i) PS D Stock purchased
pursuant to the Series A Stock Purchase Agreements dated May 29, 1991, and
January 8, 1993, subsequently exchanged for Series D Preferred Stock on May 19,
1994; ii) the PS C Stock purchased pursuant to Stock Purchase Agreement dated
December 21, 1993; iii) the Note purchased pursuant to the Note Purchase
Agreement dated March 15, 1994 (collectively the "Purchase Agreements") and iv)
the purchase of units offered by the Issuer on January 16, 1997. The PS D, PS C
and Note were converted to Common Stock on April 19, 1996. Upon the conversion
of the Note, in addition to the Common Stock issued Redeemable Warrants to buy
common stock at $1.50 per share were also issued.
Item 5. Interest in Securities of the Issuer
- --------------------------------------------
Coral Partners II currently owns 5,413,115 shares of common stock converted
from 13,054 shares of Series D Preferred Stock, 14,603 shares of Series C
Preferred Stock and the Convertible Promissory Note. Coral Partners II also owns
1,000,000 Redeemable Warrants exercisable at $1.50 per share expiring April 19,
1999. The Common Stock and the Redeemable Warrants represents 17.7% of the
Issuer, assuming exercise of the Redeemable Warrants. The following percentage
interest represents the total shares indirectly owned by each general partner
whose individual percentage interest in the company remains less than 5%; Yuval
Almog 1.15%, Peter McNerney .64%, and Linda Watchmaker .05%. Coral Partners II
has sole voting power and power of disposition of its shares. CMP II exercises
such power as general partner of Coral Partners II.
The following individuals are employees of Coral Group, Inc.: William
Baumel 20,000 of Common Stock, 20,000 Redeemable Warrants and 78,000 options to
buy Common Stock - .32%, and Mark Headrick 2,036 of Common Stock and .005%.
These individuals have sole voting and dispositive power over their respective
shares. Coral Partners II disclaims beneficial ownership over all such shares
presented in this paragraph.
9 of 11
<PAGE>
Yuval Almog, the Managing General Partner of CMP II and a non-employee
Director and Chairman of the Board of Delphi Information Systems, Inc., has been
granted a non qualified option pursuant to the Company's Non Qualified Stock
Option Plan for Directors to purchase 78,000 shares of the Company's common
stock. The stock is priced at $1.00. Options in the aggregate of 40,000 were
surrendered and canceled in exchange for 60,000 reflected in the total 78,000
options. To the extent exercisable, these options shall be exercisable in whole
or in part at any time or in part from time to time. This individual has sole
voting and dispositive power over these shares.
William Baumel, an employee of Coral Group, Inc. and a non-employee
Director of the Board of Delphi Information Systems, Inc., has been granted a
non qualified option pursuant to the Company's Non Qualified Stock Option Plan
for Directors to purchase 78,000 shares of the Company's common stock. The stock
is priced at $1.00 per share for the 78,000 shares. To the extent exercisable,
these options shall be exercisable in whole or in part at any time or in part
from time to time. This individual has sole voting and dispositive power over
these shares.
Item 6. Contracts, Arrangements, Understandings or relationships with respect to
- --------------------------------------------------------------------------------
Securities of the Issuer
- ------------------------
Coral Partners II purchased Series D Preferred Stock pursuant to the Series
A Preferred Stock Purchase Agreements dated May 29, 1991, and January 8, 1993,
subsequently exchanged for Series D Preferred Stock on May 19, 1994, purchased
Series C Preferred Stock pursuant to Stock Purchase Agreement dated December 21,
1993, and purchased the Convertible Promissory Note pursuant the Note Purchase
Agreement dated March 15, 1994 (the "Purchase Agreements"). These Purchase
Agreements contain representations and warranties of the issuer and certain
ongoing obligations and limitations. The investors have certain registration
rights as described more fully in the Purchase Agreements attached as exhibits
to the previously filed 13D and first amendment. The PS C Stock, PS D Stock and
the Note were converted into Common Stock and Redeemable Warrants on April 19,
1996 per the Conversion Agreement previously filed.
Pursuant to the provisions of the Non Qualified Stock Option Agreement, the
options are not transferable by the Optionee otherwise than by will or the laws
of descent and distribution, and are exercisable, during the lifetime of the
Optionee, only by him or by his guardian or legal representative.
Item 7. Material to Be Filed as Exhibit
- ---------------------------------------
Not applicable.
10 of 11
<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.
February 3, 1997 Coral Partners II, a limited partnership
By Coral Management Partners II,
Limited Partnership, Its: General Partner
/s/ Linda Watchmaker
-----------------------------------------
Linda Watchmaker
General Partner
Individual Reporting Persons:
By /s/ Yuval Almog
-----------------------------------------
Yuval Almog, General Partner
By /s/ Peter H. McNerney
-----------------------------------------
Peter H. McNerney, General Partner
By /s/ Linda Watchmaker
-----------------------------------------
Linda Watchmaker, General Partner
11 of 11
