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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
Under the Securities Exchange Act of 1934
(Amendment No. 14)
ALLSTATE FINANCIAL CORPORATION
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(Name of Issuer)
Common Stock, without par value
(Title of Class of Securities)
020011 10 2
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(CUSIP Number)
Gerald F. Heupel, Jr., Esq.
Elias, Matz, Tiernan & Herrick L.L.P.
12th Floor
734 15th Street, N.W.
Washington, D.C. 20005
(202)347-0300
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(Name, Address, Telephone Number of Person Authorized to Receive Notices
and Communications)
September 30, 1998
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(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 [ ].
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.
Page 1 of 8 Pages
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CUSIP No. 020011 10 2 13D Page 2 of 8 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Value Partners, Ltd. 75-2291866
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT [ ]
TO ITEM 2(d) OR 2(e)
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
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NUMBER OF 7 SOLE VOTING POWER
SHARES 1,134,060
BENEFICIALLY--------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH N/A
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 1,134,060
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10 SHARED DISPOSITIVE POWER
N/A
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,134,060
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
38.2%
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14 TYPE OF REPORTING PERSON*
PN
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CUSIP No. 020011 10 2 13D Page 3 of 8 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Ewing & Partners 75-2741747
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT [ ]
TO ITEM 2(d) OR 2(e)
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
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NUMBER OF 7 SOLE VOTING POWER
SHARES N/A
BENEFICIALLY--------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 1,134,060
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH N/A
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10 SHARED DISPOSITIVE POWER
1,134,060
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,134,060
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
38.2%
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14 TYPE OF REPORTING PERSON*
PN
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CUSIP No. 020011 10 2 13D Page 4 of 8 Pages
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1 NAMES OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Timothy G. Ewing
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT [ ]
TO ITEM 2(d) OR 2(e)
N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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NUMBER OF 7 SOLE VOTING POWER
SHARES N/A
BENEFICIALLY --------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 1,134,060
REPORTING --------------------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH N/A
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,134,060
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,134,060
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
38.2%
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14 TYPE OF REPORTING PERSON*
IN
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CUSIP No. 020011 10 2 Amendment No. 14 Page 5 of 8 Pages
Value Partners, Ltd. ("Value Partners") hereby amends its Schedule 13D
regarding the common stock, without par value (the "Common Stock"), of Allstate
Financial Corporation (the "Issuer" or "Allstate") as set forth below.
The following items are supplemented as follows:
Item 3. Source and Amount of Funds or Other Consideration
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On September 14, 1998, Value Partners purchased $2,896,000 of 10%
Convertible Subordinated Notes due September 30, 2003 ("New Notes") from the
Issuer. The purchase price of $2,896,000 was derived from the working capital
of Value Partners. Pursuant to an exchange offer conducted by Allstate which
was consummated effective as of September 30, 1998 (the "Exchange Offer"),
Value Partners exchanged $1,301,000 of Convertible Subordinated Notes due
September 30, 2000 ("Old Notes") for an equivalent principal amount of New
Notes.
Item 4. Purpose of Transaction
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Value Partners purchased the New Notes on September 14, 1998 in order to
provide a stable source of funds to the Issuer. The proceeds of the sale were
used by the Issuer to redeem an equivalent principal amount of Old Notes from
other holders of Old Notes who had previously elected to have Allstate
repurchase their Old Notes. The Exchange Offer was conducted in order to
provide those holders of Old Notes who were accredited investors an opportunity
to also receive New Notes having the same terms as those issued to Value
Partners.
The New Notes have a slightly higher interest rate (10% versus 9.5% on
the Old Notes), mature three years later than the Old Notes, and have a lower
conversion rate into Allstate's Common Stock ($6.50 per share versus $7.50
per share). In addition, the holder(s) of at least 50% of the New Notes will
be able to elect one person to the current Board of Directors.
Based upon information provided by Allstate, Value Partners understands
that a total of $1,701,000 of Old Notes were tendered for New Notes, including
those tendered by Value Partners. As a result, Value Partners currently holds
$4,197,000 or 91.3% of the total $4,597,000 of New Notes. However, no decision
has been made at this time as to whether or when Value Partners will exercise
its right to add a director to the Board of Directors or as to whom such person
would be.
Item 5. Interest in Securities of the Issuer
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(a) According to the Issuer's Report on Form 10-QSB for the quarter ended
June 30, 1998, a total of 2,323,683 shares of Common Stock were issued and
outstanding as of June 30, 1998.
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CUSIP No. 020011 10 2 Amendment No. 14 Page 6 of 8 Pages
Value Partners beneficially owns 488,368 shares of Common Stock,
representing 21.0% of the issued and outstanding Common Stock, excluding
shares which the Reporting Persons have a right to acquire. Value Partners
has the right to acquire an additional 645,692 shares upon conversion of its
New Notes. If the New Notes held by Value Partners were fully converted,
Value Partners would hold 1,134,060 shares, or 38.2% of the 2,969,375 shares
of Common Stock that would then be issued and outstanding.
(b) Value Partners has the sole power to vote and dispose of the Common
Stock and the New Notes beneficially owned by it. Value Partners does not
share the power to vote or to direct the vote of, or the power to dispose or
to direct the disposition of, the Common Stock or the New Notes owned by it.
Ewing & Partners, Ewing Asset Management, L.L.C. ("EAM") and Mr. Ewing do
not directly own any shares of Common Stock of the Issuer. However, Ewing &
Partners, as a general partner of Value Partners, may be deemed, for purposes
of determining beneficial ownership pursuant to Rule 13d-3, to have the
shared power with Value Partners to vote or direct the vote of, and the shared
power with Value Partners to dispose of or to direct the disposition of, the
Common Stock and the New Notes owned by Value Partners. Mr. Ewing, as a
general partner and the Managing Partner of Ewing & Partners, may be deemed,
for purposes of determining beneficial ownership pursuant to Rule 13d-3, to
have shared power with Value Partners to vote or to direct the vote of, and
the shared power to dispose or to direct the disposition of, the Common Stock
and the New Notes owned by Value Partners. Although EAM holds a 1% general
partner interest in Ewing & Partners, EAM does not have any shared voting or
dispositive power over the Common Stock and the New Notes owned by Value
Partners, as Section 8 of the general partnership agreement for Ewing &
Partners gives such power solely to Mr. Ewing as the Managing Partner of
Ewing & Partners.
(c) On September 14, 1998, Value Partners purchased from Allstate
$2,896,000 of New Notes. Effective September 30, 1998, Value Partners
exchanged $1,301,000 of Old Notes for an equivalent principal amount of New
Notes.
(d) to (e) No change.
Item 6. Contracts, Arrangements, Understandings or Relationships with
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Respect to Securities of the Issuer
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The Reporting Persons have no contracts, arrangements, understandings or
relationships (legal or otherwise) between themselves and any person with
respect to any securities of the Issuer other than as previously disclosed in
prior filings of this Schedule 13D.
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CUSIP No. 020011 10 2 Amendment No. 14 Page 7 of 8 Pages
Item 7. Material to be Filed as Exhibits
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The following are filed as exhibits to this Schedule 13D:
Exhibit 1* Form of Amended and Restated Agreement of Limited
Partnership of Value Partners dated as of October 1,
1993
Exhibit 2* Agreement of General Partnership of Ewing & Partners
(formerly known as Fisher Ewing Partners) dated as of
September 1, 1991
Exhibit 3* Amended and Restated Agreement of General Partnership
of Ewing & Partners dated as of January 1, 1998
Exhibit 4* Joint Filing Agreement
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* Previously filed.
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CUSIP No. 020011 10 2 Amendment No. 14 Page 8 of 8 Pages
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.
VALUE PARTNERS, LTD.
By: Ewing & Partners as General Partner
October 8 , 1998 By: /s/ Timothy G. Ewing
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Timothy G. Ewing
General Partner
EWING & PARTNERS
October 8 , 1998 By: /s/ Timothy G. Ewing
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Timothy G. Ewing
General Partner
October 8 , 1998 /s/ Timothy G. Ewing
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Timothy G. Ewing
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