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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 13G
(RULE 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULES 13d-1(b) (c), AND (d)
AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(b)/1/
California Coastal Communities, Inc.
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(Name of Issuer)
Common Stock, par value $.05
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(Title of Class of Securities)
500434303
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(CUSIP Number)
August 18, 1998
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(Date of Event Which Requires Filing of this 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)
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/1/ The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
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CUSIP No. 500434303 13G Page 2 of 11 Pages
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1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Lone Star Securities Fund, L.L.C.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3. SEC USE ONLY
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4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 5. SOLE VOTING POWER:
SHARES
BENEFICIALLY --------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER: 785,100
EACH
REPORTING --------------------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER:
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8. SHARED DISPOSITIVE POWER: 785,100
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9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON: 785,100
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10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [ ]
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11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9: 6.5%
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12. TYPE OF REPORTING PERSON*: OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT
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CUSIP No. 500434303 13G Page 3 of 11 Pages
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1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Lone Star Opportunity Fund, L.P.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3. SEC USE ONLY
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4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 5. SOLE VOTING POWER:
SHARES
BENEFICIALLY --------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER: 785,100
EACH
REPORTING --------------------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER:
--------------------------------------------------------
8. SHARED DISPOSITIVE POWER: 785,100
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9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON: 785,100
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10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [ ]
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11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9: 6.5%
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12. TYPE OF REPORTING PERSON*: PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT
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CUSIP No. 500434303 13G Page 4 of 11 Pages
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1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
LSS Management, Inc.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3. SEC USE ONLY
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4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 5. SOLE VOTING POWER:
SHARES
BENEFICIALLY --------------------------------------------------------
OWNED BY 6. SHARED VOTING POWER: 785,100
EACH
REPORTING --------------------------------------------------------
PERSON WITH 7. SOLE DISPOSITIVE POWER:
--------------------------------------------------------
8. SHARED DISPOSITIVE POWER: 785,100
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9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON: 785,100
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10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES* [ ]
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11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9: 6.5%
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12. TYPE OF REPORTING PERSON*: CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT
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Page 5 of 11 Pages
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ITEM 1(a). NAME OF ISSUER:
California Coastal Communities, Inc.
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ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
4343 Von Karman Avenue
Newport Beach, California 92660
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ITEMS 2(a) NAME OF PERSON FILING; ADDRESS OF PRINCIPAL BUSINESS OFFICE OR,
AND 2(b). IF NONE, RESIDENCE:
The name and address of the principal business office of each
filing person are as follows:
(a) Lone Star Securities Fund, L.L.C.
600 North Pearl Street, Suite 1550
Dallas, Texas 75201
(b) Lone Star Opportunity Fund, L.P.
600 North Pearl Street, Suite 1550
Dallas, Texas 75201
(c) LSS Management, Inc.
540 Madison Avenue, 32nd Floor
New York, New York 10022
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ITEM 2(c). CITIZENSHIP:
Lone Star Securities Fund, L.L.C. is a limited liability company
organized under the laws of the State of Delaware. Lone Star
Opportunity Fund, L.P. is a limited partnership organized under
the laws of the State of Delaware. LSS Management, Inc. is a
corporation organized under the laws of the State of Delaware.
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ITEM 2(d). TITLE OF CLASS OF SECURITIES:
Common Stock, par value $.05
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ITEM 2(e). CUSIP NUMBER:
500434303
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Page 6 of 11 Pages
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ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULE 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),
(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]
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Page 7 of 11 Pages
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ITEM 4(a)-(c). OWNERSHIP.
The information contained in items 1 and 5-11 on the cover pages
(pp. 2-4) of this Schedule is hereby incorporated by reference.
This Schedule is being filed jointly by Lone Star Securities
Fund, L.L.C. ("LS Securities"), Lone Star Opportunity Fund, L.P.
("LS Opportunity") and LSS Management, Inc. ("LSS Management")
(collectively, the "Reporting Persons"). LS Opportunity is the
managing member of LS Securities and the sole stockholder of LSS
Management. The shares of Common Stock, $.05 par value ("Common
Stock"), of California Coastal Communities, Inc. to which this
Schedule relates are held by LS Securities.
LSS Management is the investment manager of LS Securities. LS
Securities has granted to LSS Management, as investment manager,
the power to manage LS Securities' investments, subject to the
requirement that LS Opportunity, as the managing member of LS
Securities, approve all purchases and sales of securities by LSS
Management for LS Securities.
The sole general partner of LS Opportunity is Lone Star Partners,
L.P., a Delaware limited partnership ("LS Partners"). The sole
general partner of LS Partners is Lone Star Management Co., Ltd.,
a Delaware corporation ("LS Management"). LS Management's sole
stockholder and President is John P. Grayken, who is a dual
citizen of the United States and the Republic of Ireland. The
business address of each of LS Partners, LS Management and Mr.
Grayken is 600 North Pearl Street, Suite 1550, Dallas, Texas
75201. LS Partners, LS Management and Mr. Grayken disclaim
beneficial ownership of the shares of Common Stock which are the
subject of this Schedule, except to the extent of their
respective pecuniary interests therein.
As of the date hereof, the Reporting Persons beneficially own
785,100 shares of the Common Stock, representing 6.5% the
outstanding shares of Common Stock.
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ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
Not applicable
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Page 8 of 11 Pages
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ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Not Applicable
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ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING
COMPANY.
Not Applicable
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ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
Not Applicable
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ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not Applicable
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ITEM 10. CERTIFICATIONS.
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.
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Page 9 of 11 Pages
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SIGNATURE
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: October 19, 1998
LONE STAR SECURITIES FUND, L.L.C.
By: Lone Star Opportunity Fund, L.P.
Managing Member
By: Lone Star Partners, L.P.
General Partner
By: Lone Star Management Co., Ltd.
General Partner
By: /s/ Louis Paletta
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Louis Paletta, Vice President
LONE STAR OPPORTUNITY FUND, L.P.
By: Lone Star Partners, L.P.
General Partner
By: Lone Star Management Co., Ltd.
General Partner
By: /s/ Louis Paletta
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Louis Paletta, Vice President
LSS MANAGEMENT, INC.
By: /s/ Louis Paletta
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Louis Paletta, Vice President
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Page 10 of 11 Pages
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EXHIBIT INDEX
1. Joint Filing Agreement dated October 19, 1998 by and among Lone Star
Securities Fund, L.L.C, Lone Star Opportunity Fund, L.P. and LSS
Management, Inc.
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Page 11 of 11 Pages
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EXHIBIT 1
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JOINT FILING AGREEMENT
The undersigned hereby agree that any Statement on Schedule 13G to be filed
with the Securities and Exchange Commission by any of the undersigned, including
any amendment thereto, with respect to the securities of California Coastal
Communities, Inc. may be filed by any of the undersigned as a joint filing of
all of the undersigned.
Dated: October 19, 1998
LONE STAR SECURITIES FUND, L.L.C.
By: Lone Star Opportunity Fund, L.P.
Managing Member
By: Lone Star Partners, L.P.
General Partner
By: Lone Star Management Co., Ltd.
General Partner
By: /s/ Louis Paletta
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Louis Paletta, Vice President
LONE STAR OPPORTUNITY FUND, L.P.
By: Lone Star Partners, L.P.
General Partner
By: Lone Star Management Co., Ltd.
General Partner
By: /s/ Louis Paletta
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Louis Paletta, Vice President
LSS MANAGEMENT, INC.
By: /s/ Louis Paletta
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Louis Paletta, Vice President
