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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. 12)
ALLSTATE FINANCIAL CORPORATION
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(Name of Issuer)
Common Stock, without par value
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(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)
May 8, 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 15 Pages
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CUSIP No. 020011 10 2 13D Page 2 of 15 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 (a) / /
of a Group* (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 / / if Disclosure of Legal Proceedings is Required Pursuant to / /
Items 2(d) or 2(e)
N/A
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(6) Citizenship or Place of Organization
Texas
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Number of Shares (7) Sole Voting Power
Beneficially Owned 661,835
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
N/A
--------------------------------------------------
(9) Sole Dispositive Power
661,835
--------------------------------------------------
(10) Shared Dispositive Power
N/A
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
661,835
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(12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares* /X/
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(13) Percent of Class Represented by Amount in Row (11)
26.5%
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(14) Type of Reporting Person*
PN
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CUSIP No. 020011 10 2 13D Page 3 of 15 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 (a) / /
of a Group* (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 / / if Disclosure of Legal Proceedings is Required Pursuant to / /
Items 2(d) or 2(e)
N/A
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(6) Citizenship or Place of Organization
Texas
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Number of Shares (7) Sole Voting Power
Beneficially Owned N/A
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
661,835
--------------------------------------------------
(9) Sole Dispositive Power
N/A
--------------------------------------------------
(10) Shared Dispositive Power
661,835
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
661,835
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(12) Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares* /X/
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(13) Percent of Class Represented by Amount in Row (11)
26.5%
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(14) Type of Reporting Person*
PN
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CUSIP No. 020011 10 2 13D Page 4 of 15 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 (a) / /
of a Group* (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 / / if Disclosure of Legal Proceedings is Required Pursuant to / /
Items 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 Shares (7) Sole Voting Power
Beneficially Owned N/A
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
661,835
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(9) Sole Dispositive Power
N/A
--------------------------------------------------
(10) Shared Dispositive Power
661,835
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
661,835
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(12) Check box if the Aggregate Amount in Row (11) Excludes Certain Shares* /X/
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(13) Percent of Class Represented by Amount in Row (11)
26.5%
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(14) Type of Reporting Person*
IN
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CUSIP No. 020011 10 2 13D Page 5 of 15 Pages
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(1) Names of Reporting Person
I.R.S. Identification Nos. of Above Persons (Entities only)
David W. Campbell
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /x/
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(3) SEC Use Only
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(4) Source of Funds*
PF
00
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(5) Check / / if Disclosure of Legal Proceedings is Required Pursuant to / /
Items 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 Shares (7) Sole Voting Power
Beneficially Owned 11,000
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
2,500
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(9) Sole Dispositive Power
11,000
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(10) Shared Dispositive Power
2,500
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
13,500
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(12) Check box if the Aggregate Amount in Row (11) Excludes Certain Shares* /X/
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(13) Percent of Class Represented by Amount in Row (11)
.6%
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(14) Type of Reporting Person*
IN
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CUSIP No. 020011 10 2 13D Page 6 of 15 Pages
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(1) Names of Reporting Person
I.R.S. Identification Nos. of Above Persons (Entities only)
Edward A. McNally
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /x/
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(3) SEC Use Only
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(4) Source of Funds*
PF
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(5) Check / / if Disclosure of Legal Proceedings is Required Pursuant to / /
Items 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 Shares (7) Sole Voting Power
Beneficially Owned 13,000
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
N/A
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(9) Sole Dispositive Power
13,000
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(10) Shared Dispositive Power
N/A
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
13,000
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(12) Check box if the Aggregate Amount in Row (11) Excludes Certain Shares* /X/
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(13) Percent of Class Represented by Amount in Row (11)
.6%
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(14) Type of Reporting Person*
IN
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CUSIP No. 020011 10 2 13D Page 7 of 15 Pages
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(1) Names of Reporting Person
I.R.S. Identification Nos. of Above Persons (Entities only)
William H. Savage
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /x/
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(3) SEC Use Only
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(4) Source of Funds*
PF
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(5) Check / / if Disclosure of Legal Proceedings is Required Pursuant to / /
Items 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 Shares (7) Sole Voting Power
Beneficially Owned 18,000
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
1,000
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(9) Sole Dispositive Power
18,000
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(10) Shared Dispositive Power
1,000
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
19,000
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(12) Check box if the Aggregate Amount in Row (11) Excludes Certain Shares* /X/
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(13) Percent of Class Represented by Amount in Row (11)
.8%
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(14) Type of Reporting Person*
IN
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CUSIP No. 020011 10 2 13D Page 8 of 15 Pages
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(1) Names of Reporting Person
I.R.S. Identification Nos. of Above Persons (Entities only)
C. Scott Bartlett, Jr.
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /x/
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(3) SEC Use Only
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(4) Source of Funds*
PF
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(5) Check / / if Disclosure of Legal Proceedings is Required Pursuant to / /
Items 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 Shares (7) Sole Voting Power
Beneficially Owned 475
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
N/A
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(9) Sole Dispositive Power
475
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(10) Shared Dispositive Power
N/A
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
475
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(12) Check box if the Aggregate Amount in Row (11) Excludes Certain Shares* /X/
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(13) Percent of Class Represented by Amount in Row (11)
.02%
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(14) Type of Reporting Person*
IN
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CUSIP No. 020011 10 2 13D Page 9 of 15 Pages
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(1) Names of Reporting Person
I.R.S. Identification Nos. of Above Persons (Entities only)
Lindsay B. Trittipoe
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(2) Check the Appropriate Box if a Member (a) / /
of a Group* (b) /x/
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(3) SEC Use Only
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(4) Source of Funds*
PF
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(5) Check / / if Disclosure of Legal Proceedings is Required Pursuant to / /
Items 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 Shares (7) Sole Voting Power
Beneficially Owned 73,289
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting Power
N/A
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(9) Sole Dispositive Power
73,289
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(10) Shared Dispositive Power
N/A
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
73,289
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(12) Check box if the Aggregate Amount in Row (11) Excludes Certain Shares* /X/
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(13) Percent of Class Represented by Amount in Row (11)
3.2%
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(14) Type of Reporting Person*
IN
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CUSIP No. 020011 10 2 Amendment No. 11 Page 10 of 15 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. When Value Partners filed a lawsuit against the Issuer on December
29, 1997 jointly with David W. Campbell, Edward A. McNally and William H.
Savage, who are three non-employee directors of the Issuer, Messrs. Campbell,
McNally and Savage were included as reporting persons. Further, when Lindsay
B. Trittipoe and C. Scott Bartlett, Jr. agreed to be members of the slate of
directors to be run in opposition to the slate of directors proposed by
management, these individuals were also included as reporting persons. Value
Partners, Ltd., Ewing & Partners, Timothy G. Ewing, David W. Campbell, Edward
A. McNally, William H. Savage, C. Scott Bartlett, Jr. and Lindsay B.
Trittipoe are sometimes collectively referred to herein as the "Reporting
Persons." However, as set forth below, Messrs. Bartlett, Campbell, McNally,
Savage and Trittipoe will no longer be included as Reporting Persons in any
Schedule 13D amendments subsequently filed by Value Partners.
The following items are supplemented as follows:
Item 4. Purpose of Transaction
Recent Litigation
On May 8, 1998, the United States District Court for the Eastern
District of Virginia granted Value Partners' Motion for Partial Summary
Judgment in the lawsuit filed by management of Allstate on March 31, 1998
against Value Partners, Ltd., its general partner Ewing & Partners, and
Timothy G. Ewing, the general partner of Ewing & Partners (collectively,
"Value Partners"). The judge's order indicated that the Virginia Control
Share Acquisitions Act does not apply to Value Partners' purchases of
Allstate's common stock. As a result, Value Partners is able to vote all of
its shares of Allstate common stock.
Election of Directors
At Allstate's annual meeting of stockholders held on May 12, 1998,
Messrs. Bartlett, Campbell, McNally, Savage and Trittipoe were elected by the
stockholders to constitute the entire, five-member Board of Directors of
Allstate. A total of 1,214,320 shares were voted in favor of each of these
individuals (1,214,705 shares for Mr. Trittipoe). By comparison,
management's nominees received a total of 838,095 shares in favor. The above
votes are based on the final report issued by the independent inspector of
election on May 14, 1998.
Disbandment of Filing Group
In light of the Reporting Persons' success in the litigation and the
election of Messrs. Bartlett, Campbell, McNally, Savage and Trittipoe as
directors of Allstate (the "Directors"), the Reporting Persons are no longer
acting as a group with respect to their
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CUSIP No. 020011 10 2 Amendment No. 11 Page 11 of 15 Pages
respective shares of Allstate common stock. Accordingly, the Directors will
no longer be included as Reporting Persons in any Schedule 13D amendments
subsequently filed by Value Partners.
Reimbursement of Proxy Contest Expenses
As previously disclosed in the Reporting Persons' proxy materials in
connection with the May 12, 1998 annual meeting of stockholders, the
Reporting Persons intend to seek reimbursement from Allstate of the costs
incurred by them in the recent proxy contest. Such costs were estimated to
be $300,000, although the exact amount has not yet been determined.
General
Depending on their evaluation of the Issuer, other investment
opportunities, market conditions, and such other factors as they may deem
material, each of the Reporting Persons may seek to acquire additional shares
of Common Stock in the open market, in private transactions, by exercising
stock options or converting the Issuer's Convertible, Subordinated Notes due
September 30, 2000 (the "Notes") for those who sold such options or Notes, or
otherwise, or they may dispose of all or a portion of the shares of Common
Stock owned by them.
Other than as set forth above, none of the Reporting Persons has at this
time any specific plans or proposals that relate to, or could result in, any
of the matters referred to in paragraphs (a) through (j), inclusive, of Item
4 of Schedule 13D, except that Messrs. Bartlett, Campbell, McNally, Savage
and Trittipoe will continue to consider all matters presented to the Board of
Directors of the Issuer in accordance with their fiduciary duties.
Item 5. Interest in Securities of the Issuer
(a) According to the Issuer's Report on Form 10-KSB for the year ended
December 31, 1997, a total of 2,319,451 shares of Common Stock were issued
and outstanding as of March 20, 1998. As discussed in Item 4 above, Value
Partners is able to vote all of its shares of Allstate Common Stock.
The beneficial ownership of Common Stock of the other Reporting Persons
has been previously disclosed in prior filings of this Schedule 13D.
In the aggregate, the Reporting Persons beneficially own 570,499 shares
of Common Stock, representing 24.6% of the issued and outstanding Common
Stock, excluding shares which the Reporting Persons have a right to acquire.
If the Notes held by Value Partners and Mr. Bartlett were fully converted and
if the options held by Messrs. Campbell, McNally,
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CUSIP No. 020011 10 2 Amendment No. 11 Page 12 of 15 Pages
Savage and Trittipoe were fully exercised, the Reporting Persons would hold
781,099 shares, or 30.9% of the 2,530,051 shares of Common Stock that would
then be issued and outstanding. Value Partners owns 488,368 shares of
Allstate's issued and outstanding Common Stock and has the right to acquire
an additional 173,467 shares upon conversion of its Notes.
(b) to (e) No change.
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer
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.
Item 7. Material to be Filed as Exhibits
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 or 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.
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CUSIP No. 020011 10 2 Amendment No. 11 Page 13 of 15 Pages
Exhibit 4* Joint Filing Agreement**
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* Previously filed.
** The Reporting Persons are no longer deemed to be a group, and any
Schedule 13D amendments subsequently filed by Value Partners will no
longer include Messrs. Bartlett, Campbell, McNally, Savage and
Trittipoe.
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CUSIP No. 020011 10 2 Amendment No. 11 Page 14 of 15 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.
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints Timothy G. Ewing and David W. Campbell, and
each of them, his true and lawful attorney-in-fact, as agent with full power
of substitution and resubstitution for him and in his name, place and stead,
in any and all capacity, to sign any or all amendments to this Schedule 13D
and to file the same, with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission, granting
unto such attorney-in-fact and agent full power and authority to do and
perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully and to all intents and purposes as they
might or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents, or their substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
VALUE PARTNERS, LTD.
By: Ewing & Partners as General Partner
May 15, 1998 By:/s/ Timothy G. Ewing
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Timothy G. Ewing
General Partner
EWING & PARTNERS
May 15, 1998 By:/s/ Timothy G. Ewing
------------------------------------
Timothy G. Ewing
General Partner
May 15, 1998 /s/ Timothy G. Ewing
------------------------------------
Timothy G. Ewing
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CUSIP No. 020011 10 2 Amendment No. 11 Page 15 of 15 Pages
May 15, 1998 /s/ David W. Campbell
------------------------------------
David W. Campbell
May 15, 1998 /s/ Edward A. McNally*
------------------------------------
Edward A. McNally
May 15, 1998 /s/ William H. Savage
------------------------------------
William H. Savage
May 15, 1998 /s/ C. Scott Bartlett, Jr.*
------------------------------------
C. Scott Bartlett, Jr.
May 15, 1998 /s/Lindsay B. Trittipoe
------------------------------------
Lindsay B. Trittipoe
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* By David W. Campbell pursuant to a power of attorney.
