UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 8)
HOMEOWNERS GROUP, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $0.01 Par Value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
43739N107
---------
(CUSIP Number)
Howard L. Wolk, President
NAPAQ Corporation
4040 Mystic Valley Parkway
Boston, MA 02155
-with copies to-
Robert M. Rosen, Esq.
Lane Altman & Owens LLP
101 Federal Street
Boston, Massachusetts, 02110
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
August 11, 1997
------------------------------------------------------
(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 13-d(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).
SCHEDULE 13D
CUSIP NO. 43739N107 PAGE 2 OF 10 PAGES
------------------- ---- ----
- --------------------------------------------------------------------------------
1 Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person NAPAQ Corporation
- --------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group* (a) |_|
(b) |X|
- --------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------
4 Source of Funds* WC
- --------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceeding is Required Pursuant to
Items 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 Citizenship or Place of Organization Nevada
- --------------------------------------------------------------------------------
Number of 7 Sole Voting Power 126,000
Shares ___________________________________________________________
Beneficially 8 Shared Voting Power -0-
Owned by ___________________________________________________________
Each 9 Sole Dispositive Power 126,000
Reporting ___________________________________________________________
Person With 10 Shared Dispositive Power -0-
- --------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person 126,000
- --------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares* |_|
- --------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11) 2.27%
- --------------------------------------------------------------------------------
14 Type of Reporting Person* PN
- --------------------------------------------------------------------------------
*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.
SCHEDULE 13D
CUSIP NO. 43739N107 PAGE 3 OF 10 PAGES
------------------- ---- ----
- --------------------------------------------------------------------------------
1 Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person Cross Country Motor Club,
Inc.
- --------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group* (a) | |
(b) |X|
- --------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------
4 Source of Funds* WC
- --------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceeding is Required Pursuant to
Items 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 Citizenship or Place of Organization Massachusetts
- --------------------------------------------------------------------------------
Number of 7 Sole Voting Power 362,500
Shares ___________________________________________________________
Beneficially 8 Shared Voting Power -0-
Owned by ___________________________________________________________
Each 9 Sole Dispositive Power 362,500
Reporting ___________________________________________________________
Person With 10 Shared Dispositive Power -0-
- --------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person 362,500
- --------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares* |_|
- --------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11) 6.522%
- --------------------------------------------------------------------------------
14 Type of Reporting Person* CO
- --------------------------------------------------------------------------------
*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.
SCHEDULE 13D
CUSIP NO. 43739N107 PAGE 4 OF 10 PAGES
------------------- ---- ----
- --------------------------------------------------------------------------------
1 Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person Jeffrey C. Wolk
- --------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group* (a) |_|
(b) |X|
- --------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------
4 Source of Funds* PF
- --------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceeding is Required Pursuant to
Items 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 Citizenship or Place of Organization United States
- --------------------------------------------------------------------------------
Number of 7 Sole Voting Power 3,000
Shares ___________________________________________________________
Beneficially 8 Shared Voting Power -0-
Owned by ___________________________________________________________
Each 9 Sole Dispositive Power 3,000
Reporting ___________________________________________________________
Person With 10 Shared Dispositive Power -0-
- --------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person 3,000
- --------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares* |_|
- --------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11) .054%
- --------------------------------------------------------------------------------
14 Type of Reporting Person* 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.
SCHEDULE 13D
CUSIP NO. 43739N107 PAGE 5 OF 10 PAGES
------------------- ---- ----
- --------------------------------------------------------------------------------
1 Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person HAC, INC.
- --------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group* (a) |_|
(b) |X|
- --------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------
4 Source of Funds* WC
- --------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceeding is Required Pursuant to
Items 2(d) or 2(e) |_|
- --------------------------------------------------------------------------------
6 Citizenship or Place of Organization Delaware
- --------------------------------------------------------------------------------
Number of 7 Sole Voting Power 1,147,000
Shares ___________________________________________________________
Beneficially 8 Shared Voting Power -0-
Owned by ___________________________________________________________
Each 9 Sole Dispositive Power 1,147,000
Reporting ___________________________________________________________
Person With 10 Shared Dispositive Power -0-
- --------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person 1,147,000
- --------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares* |_|
- --------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11) 20.635%
- --------------------------------------------------------------------------------
14 Type of Reporting Person* PN
- --------------------------------------------------------------------------------
*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.
CUSIP NO. 43739N107 PAGE 6 OF 10 PAGES
------------------- ---- ----
THIS AMENDMENT NO. 8 RELATES TO THE SCHEDULE 13D ORIGINALLY FILED ON
BEHALF OF THE REPORTING PERSONS ON APRIL 4, 1996. THE TEXT OF ITEMS 4 AND 7 ARE
HEREBY AMENDED BY ADDING THE FOLLOWING:
ITEM 4. PURPOSE OF THE TRANSACTION.
The Merger Agreement among the Issuer, and The Cross Country Group,
Inc. ("Cross Country") and CC Acquisition Corporation, affiliates of the
Reporting Persons, expired as of midnight August 7, 1997, despite the fact that
Cross Country advised the Board of Directors of the Issuer of its continued
willingness to consummate a business combination and of its willingness to
extend the Merger Agreement through 5:00 P.M., August 15, 1997 for the purpose
of completing documentation. Specifically, Cross Country advised the Issuer's
Board that it was willing to execute a proposed amendment to the Merger
Agreement that would provide for Cross Country or one of its affiliates to
commence a tender offer for all of the outstanding shares of Homeowners stock
not already owned by Cross Country and its affiliates at a price of $2.06 per
share, a portion of which would be held in an escrow account pending resolution
of the potential tax liability that the Issuer faces as a result of the IRS's
proposed disallowance of approximately $20 million in losses previously claimed
by the Issuer on its federal tax returns. Cross Country's proposal also included
the commitment of Cross Country to pay at least 30% of any tax liability.
In addition to being a 30% stockholder of the Issuer, The Cross Country
Group, LLC, an affiliate of the Reporting Persons, also holds a judgement
against the Issuer for an amount that exceeds $4.5 million. The judgement is
fully secured by the assets and stock of Homeowners Marketing Services
International, Inc., the franchisor subsidiary of the Issuer, and Homeowners
Marketing Services, Inc., a subsidiary of the Issuer that administers home
warranties. As a result of the Merger Agreement expiring, The Cross Country
Group, LLC's agreement to forbear on its judgement has also terminated.
As an alternative proposal, Cross Country advised the Board of its
willingness to engage in an all cash offer. Despite the unquantifiability of the
tax liability, which could exceed $13 million, the Board advised Cross Country
that it was unwilling to consider any "all cash offers" at less than $2.06 per
share.
As a 30% stockholder of the Issuer, the Reporting Persons and their
affiliates remain committed to engage in a business combination that they
believe will be fair to public stockholders. Consequently, on August 11, 1997,
Cross Country and affiliates formally exercised their right to call a Special
Meeting of the Stockholders in accordance with the Issuer's By-laws for the
following purposes: (i) adoption of an amendment to the By-laws of the Issuer
proposed by Cross County, which, inter alia, will (x) expand the size of the
Board of Directors of the Issuer to eleven, and (y) provide that vacancies
created by such expansion be filled by stockholders at the Special Meeting, any
other special meeting or the next annual meeting; and (ii) election of the six
nominees of Cross Country to fill the vacancies created by adoption of the
amendment to the By-laws at the Special Meeting.
In addition to the foregoing, the letter served as formal demand that
the Issuer hold its Annual Meeting no later than September 30, 1997. At the
Annual Meeting Cross Country intends to run a nominee to fill the Board of
Director vacancy scheduled to occur at the next Annual Meeting.
The Reporting Persons and their affiliates are also considering all
possible options, including making an all cash offer directly to stockholders.
CUSIP NO. 43739N107 PAGE 7 OF 10 PAGES
------------------- ---- ----
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit A. Letter to Secretary of the Issuer demanding Special
Meeting.
CUSIP NO. 43739N107 PAGE 8 OF 10 PAGES
------------------- ---- ----
After reasonable inquiry and to the best of our knowledge and belief,
we each certify that the information set forth in this statement is true,
complete and correct. This statement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which shall constitute one
(1) instrument.
The Cross Country Motor Club, Inc.
by: /s/ Howard L. Wolk
-----------------------------------
Howard L. Wolk, Vice President
NAPAQ Corporation
by: /s/ Howard L. Wolk
-----------------------------------
Howard L. Wolk, Vice President
/s/ Jeffrey C. Wolk
-----------------------------------
Jeffrey C. Wolk
HAC, Inc.
by: /s/ Howard L. Wolk
-----------------------------------
Howard L. Wolk, Vice President
Dated: August 12, 1997
CUSIP NO. 43739N107 PAGE 9 OF 10 PAGES
------------------- ---- ----
EXHIBIT A
---------
August 11, 1997
VIA TELECOPIER
- --------------
Karen Childress, Secretary
Homeowners Group, Inc.
400 Sawgrass Parkway
Sunrise, FL 33325
Dear Ms. Childress:
Based upon my conversation with Paul Berkowitz of earlier today, and
our understanding that the Board is holding a meeting scheduled for 1:00 p.m.
today.
In accordance with Section 2.3 of the Company's By-laws, I am writing
on behalf of The Cross Country Group, Inc. and its affiliates ("Cross Country"),
the holders of not less than 10% of the outstanding shares entitled to vote at
any meeting of the stockholders of Homeowners Group, Inc. (the "Company") to
demand that a special meeting of the stockholders of the Company be called for
1:00 p.m., September 22, 1997 (the "Special Meeting") for the following
purposes: (i) adoption of an amendment to the By-laws of the Company proposed by
Cross County, which, inter alia, will (x) expand the size of the Board of
Directors of the Company to eleven, and (y) provide that vacancies created by
such expansion be filled by stockholders at the Special Meeting, any special
meeting or the next annual meeting; and (ii) election of the six nominees of
Cross Country to fill the vacancies created by adoption of the amendment to the
By-laws at the Special Meeting.
In addition to the foregoing, this letter shall serve as formal demand
that the Company hold its Annual Meeting no later than September 30, 1997. At
the Annual Meeting Cross Country intends to run a nominee to fill the Board of
Director vacancy scheduled to occur at the next Annual Meeting.
CUSIP NO. 43739N107 PAGE 10 OF 10 PAGES
------------------- ---- ----
We will provide you with our nominees in accordance with Section 3.2 of
the Company's By-laws.
Very truly yours,
Robert M. Rosen
RMR/
cc: Paul Berkowitz
Gary Lipson
Diane Gruber
Dr. Michael Nocero
Melvin Stewart
