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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No.1)
Shoney's, Inc.
---------------------------------
(Name of Issuer)
Common Stock
---------------------------------
(Title of Class of Securities)
829039100
(CUSIP Number)
Courage Capital Management, LLC
ATTN: Richard Patton
4400 Harding Road
Nashville, TN 37205
(615) 298-7606
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
September 6, 2000
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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(e), (f) or (g), check the following box.
*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
disclosures provided in a prior cover page.
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).
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CUSIP No. 829039100 13D Page 2 of 10 pages
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1 NAME OF REPORTING PERSON
I.R.S IDENTIFICATION NO. OF ABOVE PERSON
Courage Capital Management, LLC ("Courage Capital")
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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 SOURCE OF FUNDS
00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Tennessee
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NUMBER OF 7 SOLE VOTING POWER
635,111 shares of Common Stock (includes 70,711 shares
SHARES issuable upon conversion of Convertible Subordinated
Debentures due 2002 ("TPI Notes")
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BENEFICIALLY 8 SHARED VOTING POWER
0 shares of Common Stock
OWNED BY
----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
635,111 shares of Common Stock (includes 70,711 issuable
upon conversion of TPI Notes)
REPORTING ----------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
0 shares of Common Stock
WITH
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
635,111 shares of Common Stock, consisting of 0 shares of Common
Stock held directly, 564,400 shares held indirectly through V-One
Opportunity Fund, L.P., and 70,711 shares of Common Stock held
indirectly through Courage Special Situations Fund, LP
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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
1.41% Common Stock
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14 TYPE OF REPORTING PERSON
00
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CUSIP No. 829039100 13D Page 3 of 10 pages
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1 NAME OF REPORTING PERSON
I.R.S IDENTIFICATION NO. OF ABOVE PERSON
Richard C. Patton
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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 SOURCE OF FUNDS
00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 7 SOLE VOTING POWER
0 shares of Common Stock
SHARES
----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
635,111 shares of Common Stock beneficially owned by
Courage Capital (includes 70,711 shares issuable upon
OWNED BY conversion of TPI Notes); Managing Directors, Richard C.
Patton and Donald M. Farris share voting power.
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EACH 9 SOLE DISPOSITIVE POWER
0 shares of Common Stock
REPORTING
----------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
635,111 shares of Common Stock beneficially owned by
Courage Capital (70,711 shares issuable upon conversion
WITH of TPI Notes); Managing Directors, Richard C. Patton and
Donald M. Farris share voting power.
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
635,111 shares of Common Stock held indirectly through Courage Capital.
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
1.41% Common Stock
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14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
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CUSIP No. 829039100 13D Page 4 of 10 pages
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1 NAME OF REPORTING PERSON
I.R.S IDENTIFICATION NO. OF ABOVE PERSON
Donald M. Farris
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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 SOURCE OF FUNDS
00
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 7 SOLE VOTING POWER
0 shares of Common Stock
SHARES
------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
635,111 shares of Common Stock beneficially owned by
Courage Capital (70,711 shares issuable upon conversion
OWNED BY of TPI Notes); Managing Directors, Richard C. Patton
and Donald M. Farris share voting power.
------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
0 shares of Common Stock
REPORTING
------------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
635,111 shares of Common Stock beneficially owned by
Courage Capital (includes 70,711 shares issuable upon
WITH conversion of TPI Notes); Managing Directors, Richard
C. Patton and Donald M. Farris share voting power.
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
635,111 shares of Common Stock held indirectly through Courage Capital.
--------------------------------------------------------------------------------
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
1.41% Common Stock
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14 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
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CUSIP No. 829039100 13D Page 5 of 10 pages
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1 NAME OF REPORTING PERSON
I.R.S IDENTIFICATION NO. OF ABOVE PERSON
V-One Opportunity Fund, LP ("V-One")
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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 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Tennessee
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NUMBER OF 7 SOLE VOTING POWER
564,400 shares of Common Stock.
SHARES
---------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
0 shares of Common Stock
OWNED BY
---------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
564,400 shares of Common Stock.
REPORTING
---------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
0 shares of Common Stock
WITH
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
564,400 shares of Common Stock held directly.
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[X] Excludes shares beneficially owned by its General Partner, Courage
Capital, through other funds.
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
1.11% Common Stock
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14 TYPE OF REPORTING PERSON
PN
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CUSIP No. 829039100 13D Page 6 of 10 pages
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1 NAME OF REPORTING PERSON
I.R.S IDENTIFICATION NO. OF ABOVE PERSON
Courage Special Situations Fund, LP ("Courage Fund")
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Tennessee
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
70,711 shares of Common Stock issuable upon conversion
of TPI Notes.
SHARES
----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
0 shares of Common Stock
OWNED BY
----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
70,711 shares of Common Stock issuable upon conversion
TPI Notes.
REPORTING
----------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
0 shares of Common Stock
WITH
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
70,711 shares of Common Stock held directly.
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X]
Excludes shares beneficially owned by its General Partner, Courage
Capital, held in V-One
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
0.1% Common Stock
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14 TYPE OF REPORTING PERSON
00
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ITEM 1. SECURITY AND ISSUER.
This Schedule 13D relates to the common stock, par value $1.00 share (the
"Common Stock") of Shoney's, Inc., a Tennessee corporation (the "Issuer"). The
principal executive offices of the Issuer are located at 1727 Elm Hill Pike,
Nashville, TN 37210.
ITEM 2. IDENTITY AND BACKGROUND.
Courage Capital Management, LLC ("Courage Capital"):
(1) Courage Capital Management, LLC ("Courage Capital"), a Tennessee
limited liability company, is a private investment firm with its
principal office and place of business at 4400 Harding Road,
Nashville, TN 37205. Courage Capital has not been convicted in a
criminal proceeding or been a party to a civil proceeding described
in Schedule 13D item 2(d) or (3). Courage Capital's beneficial
ownership of the Issuer's Common Stock is controlled by its Managing
Directors, Richard C. Patton and Donald M. Farris. Its Members are
Messrs. Patton and Farris and Woodmont Capital LLC, none of which
beneficially own shares of Common Stock of the Issuer except as set
forth herein.
Richard C. Patton:
(1) Richard C. Patton
(2) 4400 Harding Road, Nashville, TN 37205.
(3) Chief Manager, Courage Capital, 4400 Harding Road, Nashville, TN
37205.
(4) During the last five years, Mr. Patton has not been convicted in a
criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) During the last five years, Mr. Patton has not been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction where,
as a result of such proceeding, he was subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, Federal or State securities laws or finding any violation with
respect to such laws.
(f) United States.
Donald M. Farris:
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(1) Donald M. Farris
(2) 4400 Harding Road, Nashville, TN 37205.
(3) Managing Director, Courage Capital, 4400 Harding Road,
Nashville, TN 37205.
(4) During the last five years, Mr. Farris has not been convicted
in a criminal proceeding (excluding traffic violations or
similar misdemeanors).
(e) During the last five years, Mr. Farris has not been a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction where,
as a result of such proceeding, he was subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, Federal or State securities laws or finding any violation with
respect to such laws.
(f) United States.
Courage Special Situations Fund, LP:
Courage Special Situations Fund, LP ("Courage Fund"), a Tennessee limited
partnership, is a private investment firm with its principal office and business
located at 4400 Harding Road, Nashville, TN 37205. Its sole general partner is
Courage Capital. Courage Fund has not been convicted in a criminal proceeding or
been a party to a civil proceeding described in Schedule 13D Item 2(d) or (e).
V-One Opportunity Fund, L.P.:
V-One Opportunity Fund, LP ("V-One"), a Tennessee limited partnership, is
a private investment fund with its principal office and business located at 4400
Harding Road, Nashville, TN 37205. Its sole general partner is Courage Capital.
V-One has not been convicted in a criminal proceeding or been a party to a civil
proceeding described in Schedule 13D Item 2(d) or (e).
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
On August 22, 2000, Courage Fund obtained the beneficial ownership of
101,010 shares of Common Stock issuable upon conversion of TPI Notes. The TPI
Notes were purchased by Courage Fund in a market transaction for a total
consideration of $1,510,020. The source of the funds was the working capital of
Courage Fund.
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ITEM 4. PURPOSE OF TRANSACTION.
Each of the parties described holds or held certain shares of Common Stock
or securities convertible into Common Stock described herein for investment
purposes. In the ordinary course of business, each of the parties described
herein from time to time reviews the performance of its investments and may
acquire or dispose of shares of Common Stock at any time. On September 6, 2000,
the parties tendered the Liquid Yield Option Notes due 2004 ("LYONS") previously
reported on Schedule 13D filed July 16, 2000 and certain TPI Notes pursuant to a
Letter Agreement with the Issuer dated June 27, 2000 in connection with the
Issuer's tender offer for such securities.
Except as set forth above, none of the parties described herein currently
has plans or proposals with respect to any of the matters set forth in
paragraphs (a) through (j) of Item 4 of Schedule 13D. As part of the review of
investments in the Common Stock, each of the parties described herein may
explore from time to time a variety of alternatives, including, without
limitation, any of the matters set forth in paragraphs (a) through (j) of Item 4
of Schedule 13D. The decision to explore any of such alternatives would depend
on a variety of factors, including current and anticipated future trading prices
for the Common Stock, the financial condition, results of operations and
prospects of the Issuer and general economic, financial market and industry
conditions.
ITEM 5. INTERESTS IN SECURITIES OF THE ISSUER.
Information required by Item 5 (a) and (b) is incorporated by reference to
items 7-11 and 13 from the cover pages hereto.
(c) On August 22, 2000, Courage Capital purchased $2,000,000 principal
amount of TPI Notes, convertible into 101,010 shares of Common Stock
of the Issuer. On September 6, 2000, $600,000 principal amount of
such TPI Notes, convertible into 30,303 shares of Common Stock, was
tendered to the Issuer in its tender offer at an aggregate sale
price of $414,000.
On September 6, 2000 in connection with its tender offer, the Issuer
exercised its option to purchase $15,713,000 principal amount of TPI
Notes, convertible into 793,632 shares of Common Stock, and all of
the LYONS described by the parties in Schedule 13D filed on July 16,
2000. These TPI Notes and LYONS were on deposit with the Issuer and
subject to a Letter Agreement dated June 27, 2000 attached as
Exhibit 2 hereto, and the parties disclaim beneficial ownership
thereof after June 27, 2000. The Issuer purchased such TPI Notes at
an aggregate sale price of $10,841,970 and the LYONS at an aggregate
sale price of $13,000,000.
(d) N/A
(e) As of the date hereof, none of the parties beneficially owns 5% or
more of the Common Stock of Issuer. Courage Capital holds $1,400,000
principal amount of TPI Notes, convertible into 70,711 shares of
Common Stock. V-One continues to hold 564,400 shares of Common
Stock.
9
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ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS, OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
N/A
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 1 Joint Filing Agreement of Courage Capital, Richard C.
Patton, Donald M. Farris, Courage Fund and V-One
(incorporated by reference to Schedule 13D filed by
the parties on July 16, 2000).
Exhibit 2 Letter Agreement between the Issuer, Courage Fund and
V-One dated June 27, 2000 (incorporated by reference
to Schedule 13D filed by the parties on July 16,
2000).
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.
Courage Capital Management, LLC
Date: September 15, 2000 By: /s/ Richard C. Patton
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Its: Chief Manager
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