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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
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OMB APPROVAL
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FORM 3 OMB Number: 3235-0104
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Estimated average burden
hours per response .... 0.5
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1. Name and Address of Reporting Person *
SK-Palladin Partners, LP
(Last) (First) (Middle)
c/o SK-Palladin Partners, LP
1285 Avenue of the Americas, 21st Floor
(Street)
New York NY 10019
(City) (State) (Zip)
2. Date of Event Requiring Statement ( Month / Day / Year )
12/12/97
3. IRS or Social Security Number of Reporting Person, if an entity (Voluntary)
4. Issuer Name and Ticker or Trading Symbol
Platinum Entertainment, Inc./PTET
5. Relationship of Reporting Person to Issuer (Check all applicable)
Director X 10% Owner
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Officer (give title Other
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below)
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6. If Amendment, Date or Original (Month/Day/Year)
7. Individual or Join/Group Filing (Check Applicable Line)
X Form filed by One Reporting Person
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Form filed by More than One Reporting Person
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TABLE I -- NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
1. Title of security 2. Amount of Securities 3. Ownership 4. Nature of Indirect
(Inst.4) Beneficially Owned Form: Direct (D) Beneficial Ownership
(Instr. 4) or Indirect (I) (Instr. 5)
(Inst. 5)
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Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over)
* If the Form is filed by more than one reporting person, SEE instruction 5(b)(v). SEC 1473(7-97)
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FORM 3 (CONTINUED) TABLE II -- DERIVATIVE SECURITIES BENEFICIALLY OWNED (E.G., PUTS,
CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
1. Title of Derivative Security 2. Date Exercisable and 3. Title and Amount of Securities Underlying
(Instr. 4) Expiration Date Derivative Security (Instr. 4)
(Month/Day/Year)
Amount or
Date Expiration Title Number of
Exercisable Date Shares
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Series B Convertible Preferred Stock (1) (1) Common Stock (2)
Common Stock Purchase Warrant (right to buy) (4) (4) Common Stock 1,800,000
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4. Conversion or 5. Ownership 6. Nature of Indirect
Exercise Price of Form of Beneficial Ownership
Derivative Derivative (Instr. 5)
Security Security:
Direct (D) or
Indirect (I)
(Instr. 5)
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(3) D
(5) D
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Explanation of Responses:
(1) Shares of Series B Convertible Preferred Stock are convertible into shares
of Common Stock commencing on December 12, 1999, and at any time thereafter.
(2) The number of shares of Common Stock issuable upon conversion of a share of
the Series B Convertible Preferred Stock will be such number as is equal to the
quotient obtained by dividing the then applicable redemption value of such share
($1,000 liquidation value per share plus accrued and unpaid dividends) by the
Conversion Price. This report relates to 10,000 shares of Series B Convertible
Preferred Stock.
(3) The Conversion Price is equal to the lesser of (i) $5.9375 per share of
Common Stock and (ii) 100% of the average of the daily closing price per share
of Common Stock for the 30 consecutive trading days following the public release
by the Issuer of its consolidated earnings statement for the 1998 fiscal year
(the "Thirty Day Period").
(4) The Common Stock Purchase Warrant (the "Warrant") is exercisable at any time
on or after December 12, 1997 until October 31, 2007.
(5) Common Stock underlying the Warrant may be purchased at a price (the
"Exercise Price") equal to the lesser of (i) $6.25 per share of Common Stock
(the "Initial Warrant Exercise Price") and (ii) 82.5% of the average of the
daily closing price per share of Common Stock for the Thirty Day Period.
Notwithstanding the foregoing, if at any time prior to the expiration of the
Thirty Day Period, no shares of Series B Convertible Stock remain outstanding,
the Exercise Price will be the Initial Warrant Exercise Price.
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. SEE 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, SEE Instruction 6 for procedure.
By: SK-Palladin Partners, LP,
By: SK-Palladin Holdings, LP,
its general partner
By: SK-Palladin Gen Par, Inc.,
its general partner
By: /s/ Mark J. Schwartz 12/22/97
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**Signature of Reporting Person Date
Name: Mark J. Schwartz
Title: President and Chief Executive Officer
SEC 1473(7-97)
