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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 1)
WinStar Communications, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
975515107
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(CUSIP Number)
December 31, 1999
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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)
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 1 of 10 Pages
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CUSIP No. 975515107
1. NAMES OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
GBU Inc.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
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3. SEC USE ONLY
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4. CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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5. SOLE VOTING POWER
NUMBER OF SHARES
BENEFICIALLY OWNED BY EACH 3,458,660
REPORTING PERSON WITH
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6. SHARED VOTING POWER
-0-
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7. SOLE DISPOSITIVE POWER
3,458,660
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8. SHARED DISPOSITIVE POWER
-0-
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9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,458,660
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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)
6.2%
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12. TYPE OF REPORTING PERSON *
IA
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* SEE INSTRUCTIONS BEFORE FILLING OUT
CUSIP No. 975515107
1. NAMES OF REPORTING PERSONS
Page 2 of 10 Pages
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S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
GEM Capital Management, Inc.
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
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3. SEC USE ONLY
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4. CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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5. SOLE VOTING POWER
NUMBER OF SHARES
BENEFICIALLY OWNED BY EACH 1,769,685
REPORTING PERSON WITH
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6. SHARED VOTING POWER
-0-
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7. SOLE DISPOSITIVE POWER
1,769,685
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8. SHARED DISPOSITIVE POWER
-0-
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9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,769,685
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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)
3.2%
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12. TYPE OF REPORTING PERSON *
IA
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* SEE INSTRUCTIONS BEFORE FILLING OUT
CUSIP No. 833482102
1. NAMES OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Page 3 of 10 Pages
<PAGE> 4
Gerald B. Unterman
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
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3. SEC USE ONLY
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4. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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5. SOLE VOTING POWER
NUMBER OF SHARES
BENEFICIALLY OWNED BY EACH
REPORTING PERSON WITH 5,228,345
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6. SHARED VOTING POWER
-0-
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7. SOLE DISPOSITIVE POWER
5,228,345
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8. SHARED DISPOSITIVE POWER
-0-
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9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,228,345
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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)
9.3%
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12. TYPE OF REPORTING PERSON *
IN
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* SEE INSTRUCTIONS BEFORE FILLING OUT
Item 1(a). Name of Issuer
WinStar Communications, Inc.
Item 1(b). Address of Issuer's Principal Executive Offices
Page 4 of 10 Pages
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230 Park Avenue
New York, New York 10169
Item 2(a). Name of Person Filing
GBU Inc.
GEM Capital Management, Inc.
Gerald B. Unterman
Item 2(b). Address of Principal Business Office
70 East 55th Street - 12th Floor
New York, NY 10022
Item 2(c). Citizenship
The information contained in Item 4 on the cover pages is
incorporated hereby by reference
Item 2(d). Title of Class of Securities
Common Stock
Item 2(e). CUSIP Number
975515107
Item 3. This Statement is filed pursuant to
Rule 13d-1(c) and Rule 13d-2(b)
Item 4. Ownership as of December 31, 1999
The information contained in Items 5-11 on the cover pages is
incorporated hereby by reference
Item 5. Ownership of Five Percent or Less of a Class
Not Applicable
Item 6. Ownership of More Than Five Percent on Behalf of Another
Person
Page 5 of 10 Pages
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GBU Inc., a registered investment adviser, is the general
partner of Oak Tree Partners, L.P., a Delaware limited
partnership which beneficially owns more than five percent
(5%) of the Common Stock of WinStar Communications, Inc.
Item 7. Identification and Classification of Certain Subsidiaries
Not Applicable
Item 8. Identification and Classification of Members of a Group
See Exhibit A annexed hereto
Item 9. Notice of Dissolution of a Group
Not Applicable
Item 10. Certification
By signing below the undersigned certify that, to the best of their
knowledge and belief, the securities referred to above were acquired and are
held in the ordinary course of business and 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.
After reasonable inquiry and to the best of their knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and accurate.
SIGNATURE:
Date: January 19, 2000
GBU INC.
By: /s/ Gerald B.Unterman
----------------------------
Gerald B. Unterman
President
Page 6 of 10 Pages
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GEM CAPITAL MANAGEMENT, INC.
By: /s/ Gerald B.Unterman
----------------------------
Gerald B. Unterman
President
/s/ Gerald B.Unterman
-------------------------------
GERALD B. UNTERMAN
Page 7 of 10 Pages
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EXHIBIT A
Mr. Unterman is the President, a director and controlling shareholder
of GBU Inc. ("GBU"), an investment adviser registered under Section 203 of the
Investment Advisers Act of 1940 (the "Advisers Act"). GBU is the sole general
partner of Oak Tree Partners, L.P. ("Oak Tree") and GEM Convertible Securities
Partners, L.P. ("GEM Convertible").
As of December 31, 1999, Oak Tree owned an aggregate of (a) 2,399,012
shares of the Common Stock of WinStar Communications, Inc. (the "Company"), (b)
321,940 shares of the Company's 6% Series A Cumulative Convertible Preferred
Stock (the "Series A Preferred Stock"), (c) 28,000 shares of the Company's 7
1/4% Series F Senior Cumulative Convertible Preferred Stock (the "Series F
Preferred Stock"), and (d) 187,600 warrants (the "Warrants"). As of December 31,
1999, GEM Convertible owned 98,213 shares of the Company's Common Stock.
Each share of Series A Preferred Stock is convertible into the
Common Stock of the Company at a conversion rate of one share of Common Stock
for each share of Series A Preferred Stock. Each share of Series F Preferred
Stock is convertible into the Common Stock of the Company at a conversion rate
of 16.13912 shares of Common Stock for each share of Series F Preferred Stock.
Each Warrant may be exercised for one share of the Common Stock.
Pursuant to Regulation 13d-3(d)(1) promulgated under the Securities
Exchange Act of 1934, as amended (the "Regulation"), GBU is deemed to be the
beneficial owner of an additional 961,435 shares of Common Stock which Oak Tree
has the right to acquire upon conversion of the Series A Preferred Stock and the
Series F Preferred Stock and upon exercise of the Warrants. GBU is deemed to be
the beneficial owner of 3,458,660 shares or 6.0% of the Company's Common Stock.
Mr. Unterman is also the President, director and majority shareholder
of GEM Capital Management, Inc. ("GEM Capital"), an investment adviser
registered under the Advisers Act. GEM Capital is an investment adviser for
various managed accounts over which it has investment discretion. Pursuant to
the Regulation, GEM Capital is deemed to be the beneficial owner of the shares
of Common Stock, Series A Preferred Stock, and 7% Series D Senior Cumulative
Convertible Preferred Stock (the "Series D Preferred Stock") owned by the
accounts for which GEM Capital acts as investment adviser. Accordingly, GEM
Capital is deemed to be the beneficial owner of (a) 223,681 shares of Common
Stock, (b) 1,238,033 shares of Series A Preferred Stock, and (c) 305,557 shares
of Series D Preferred Stock.
Page 8 of 10 Pages
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Each share of Series D Preferred Stock is convertible into the Common
Stock of the Company at a conversion rate of 1.0079 shares of Common Stock for
each share of Series D Preferred Stock.
Pursuant to the Regulation, GEM Capital is deemed to be the beneficial
owner of an additional 1,546,004 shares of Common Stock which it has the right
to acquire upon conversion of the Series A Preferred Stock and the Series D
Preferred Stock. GEM Capital is deemed to be the beneficial owner of 1,769,685
shares or 3.2% of the Common Stock.
GBU and GEM Capital are of the view that they are not acting as a
"group" for purposes of Section 13(d) under the Securities Exchange Act of 1934
and they are not otherwise required to attribute to each other the beneficial
ownership of securities deemed to be beneficially owned by the other corporation
under the Securities Exchange Act.
Page 9 of 10 Pages
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EXHIBIT B
The undersigned hereby agree that for the purposes of complying with
Regulation 13D promulgated under the Securities Exchange Act of 1934, as
amended, relating to the reporting of beneficial ownership, from time to time,
of the Common Stock of WinStar Communications, Inc., by each of the undersigned,
only one statement on Schedule 13G (or one Amendment, as the case may be, in the
event an amendment to the Schedule 13G is required to be filed), will be filed
on behalf of each of the undersigned.
Dated: January 19, 2000
GBU INC.
By: /s/ Gerald B.Unterman
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Gerald B. Unterman
President
GEM CAPITAL MANAGEMENT, INC.
By:/s/ Gerald B.Unterman
----------------------------
Gerald B. Unterman
President
/s/ Gerald B.Unterman
----------------------------
GERALD B. UNTERMAN
Page 10 of 10 Pages
