SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)
RIVIERA HOLDINGS CORPORATION
(Name of Issuer)
COMMON STOCK, PAR VALUE $.001 PER SHARE
(Title of Class of Securities)
769627100
(CUSIP Number)
EDWIN H. MORGENS
10 EAST 50TH STREET
NEW YORK, NEW YORK 10022
(212) 705-0500
(Name, address and telephone number of person
authorized to receive notices and communications)
April 1, 1997
(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 [ ].
Check the following box if a fee is being paid with the statement [ ].
(A fee is not required only if the reporting person: (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto reporting beneficial ownership of five percent or less of
such class.) (See Rule 13d-7.)
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.
* 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 the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for purposes 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 38 Pages
<PAGE>
13D
CUSIP No. 769627100
___________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Morgens Waterfall Income Partners, L.P.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
00
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
43,920
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
43,920
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
43,920
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.9%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Restart Partners, L.P.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
WC, 00
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
282,000
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
282,000
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
282,000
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
5.7%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 3 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
_____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Restart Partners II, L.P.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
00
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
440,600
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
440,600
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
440,600
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
9.0%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 4 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Restart Partners III, L.P.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
00
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
298,600
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
298,600
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
298,600
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
6.1%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 5 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
The Common Fund for Non-Profit Organizations
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
00
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
- 0 -
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
90,880 - See Response to Item 5
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
90,880
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
90,880
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
1.8%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
CO
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 6 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
MWV Employee Retirement Plan Group Trust
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
00
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
7,760 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
7,760 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
7,760
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.2%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
EP
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 7 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Betje Partners
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
WC
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
29,360 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
29,360- See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
29,360
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.6%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 8 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Phoenix Partners, L.P.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
00
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
79,440 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
79,440 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
79,440
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
1.6%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 9 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Morgens, Waterfall, Vintiadis & Company, Inc.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
29,360 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
90,880 - See Response to Item 5
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
120,240 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
120,240 - See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
2.4 %
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
CO
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 10 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
MW Capital, L.L.C.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
43,920 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
43,920 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
43,920 - See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.9%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
CO
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 11 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Prime Group, L.P.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
282,000 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
282,000 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
282,000 - See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
5.7%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 12 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Prime Group II, L.P.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
440,600 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
440,600 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
440,600 - See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
9.0%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 13 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Prime Group III, L.P.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
298,600 See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
298,600 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
298,600 - See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
6.1%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
PN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 14 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Prime, Inc.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
1,021,200 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
1,021,200 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,021,200 - See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
20.7%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
CO
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 15 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
MW Management, L.L.C.
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
_____________________________________________________________________________
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
79,440 - See Response to Item 5
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
- 0 -
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
79,440 - See Response to Item 5
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
- 0 -
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
79,440 - See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
1.6%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
CO
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 16 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
John C. "Bruce" Waterfall
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(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
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
- 0-
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
1,264,800 - See Response to Item 5
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
- 0-
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
1,264,800 - See Response to Item 5
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,264,800- See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
25.7%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
IN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 17 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Edwin H. Morgens
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(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
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
- 0 -
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
1,264,800 - See Response to Item 5
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
- 0 -
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
1,264,800 -See Response to Item 5
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
1,264,800 -See Response to Item 5
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [x]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
25.7%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
IN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 18 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
David Ericson
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(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
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
- 0 -
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
7,760
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
- 0 -
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
7,760
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
7,760
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.2%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
IN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 19 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Dan Levinson
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(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
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
- 0 -
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
7,760
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
- 0 -
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
7,760
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
7,760
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.2%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
IN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 20 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
John Raphael
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(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
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
- 0 -
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
7,760
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
- 0 -
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
7,760
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
7,760
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.2%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
IN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 21 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Joann McNiff
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(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
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
- 0 -
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
7,760
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
- 0 -
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
7,760
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
7,760
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.2%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
IN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 22 of 38 Pages
<PAGE>
13D
CUSIP No. 769627100
____________________________________________________________________________
(1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
Stephanie Catlett
_____________________________________________________________________________
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [x]
(b) [ ]
_____________________________________________________________________________
(3) SEC USE ONLY
_____________________________________________________________________________
(4) SOURCE OF FUNDS **
AF
____________________________________________________________
(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
_____________________________________________________________________________
NUMBER OF (7) SOLE VOTING POWER
- 0 -
SHARES ______________________________________________________________
BENEFICIALLY (8) SHARED VOTING POWER
7,760
OWNED BY ______________________________________________________________
EACH (9) SOLE DISPOSITIVE POWER
- 0 -
REPORTING ______________________________________________________________
PERSON WITH (10) SHARED DISPOSITIVE POWER
7,760
_____________________________________________________________________________
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
7,760
_____________________________________________________________________________
(12) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ]
_____________________________________________________________________________
(13) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
0.2%
_____________________________________________________________________________
(14) TYPE OF REPORTING PERSON **
IN
_____________________________________________________________________________
** SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 23 of 38 Pages
<PAGE>
ITEM 1. SECURITY AND ISSUER.
This Amendment No. 1 ("Amendment") amends and restates the statement on
Schedule 13D ("Statement") filed by persons named in Item 2 below with the
Securities and Exchange Commission (the "Commission") on July 12, 1993
relating to the common stock, par value $.001 per share ("Common Stock"), of
Riviera Holdings Corporation, a Nevada corporation (the "Issuer"). The
principal executive offices of the Issuer are located at 2901 Las Vegas
Boulevard South, Las Vegas, Nevada 89109.
ITEM 2. IDENTITY AND BACKGROUND.
This Statement is filed jointly by (a) Morgens Waterfall Income
Partners, L.P. ("MWIP"); (b) Restart Partners, L.P. ("Restart"); (c) Restart
Partners II, L.P. ("Restart II"); (d) Restart Partners III, L.P. ("Restart
III"); (e) The Common Fund for Non-Profit Organizations (the "Common Fund");
(f) MWV Employee Retirement Plan Group Trust ("MWV Plan") as successor to the
Morgens, Waterfall, Vintiadis & Co., Inc. Employee Profit Sharing Plan (the
"Old Plan"); (g) Betje Partners ("Betje"); (h) Phoenix Partners, L.P.
("Phoenix"); (i) Morgens, Waterfall, Vintiadis & Company, Inc. ("Morgens
Waterfall"); (j) MW Capital, L.L.C. ("MW Capital"); (k) Prime Group, L.P.
("Prime"); (l) Prime Group II, L.P. ("Prime II"); (m) Prime Group III, L.P.
("Prime III"); (n) Prime, Inc.; (o) MW Management, L.L.C. ("MW Management");
(p) John C. "Bruce" Waterfall ("Waterfall"); (q) David Ericson; (r) Dan
Levinson; (s) John Raphael; (t) Joann McNiff; (u) Stephanie Catlett; and (v)
Edwin H. Morgens ("Morgens" and together with the persons listed in clauses
(a) through (u) above, the "Reporting Persons").
MWIP is a New York limited partnership whose principal business is to
invest in securities of United States issuers. MW Capital, a Delaware limited
liability company, is the general partner of MWIP. MWIP and MW Capital have
their principal address at 10 East 50th Street, New York, New York 10022.
Morgens and Waterfall are the managing members of MW Capital. All of the
information concerning Morgens and Waterfall is set forth below.
Restart, Restart II and Restart III are Delaware limited partnerships
having their principal address at 10 East 50th Street, New York, New York
10022. The principal business of Restart, Restart II and Restart III is to
invest in securities of financially troubled companies.
The general partner of Restart is Prime, a Delaware limited
partnership, having its principal address at 10 East 50th Street, New York,
New York 10022. The principal business of Prime is to act as the general
partner of Restart. The general partner of Prime is Prime, Inc., a Delaware
corporation, having its principal address at 10 East 50th Street, New York,
New York 10022. The principal business of Prime, Inc. is to act as general
partner of Prime, Prime II and Prime III(as discussed below). Waterfall is
the President and a Director of Prime, Inc. Morgens is the Chairman of the
Board of Directors and the Secretary of Prime, Inc. All of the information
concerning Morgens and Waterfall is set forth below.
Page 24 of 38 Pages
<PAGE>
The general partner of Restart II is Prime II, a Delaware limited
partnership, having its principal address at 10 East 50th Street, New York,
New York, 10022. The principal business of Prime II is to act as the general
partner of Restart II. The general partner of Prime II is Prime, Inc. All of
the information concerning Prime, Inc. is set forth above.
The general partner of Restart III is Prime III, a Delaware limited
partnership, having its principal address at 10 East 50th Street, New York,
New York 10022. The principal business of Prime III is to act as the general
partner of Restart III. The general partner of Prime III is Prime, Inc. All
of the information concerning Prime, Inc. is set forth above.
MWV Plan is a trust established in 1994 for the benefit of the
employees of Morgens Waterfall. MWV Plan is the successor to the Old Plan.
The trustees of MWV Plan are David Ericson, Dan Levinson, John Raphael, Joann
McNiff and Stephanie Catlett (collectively, the "Trustor"), all of whom are
employees of Morgens Waterfall. MWV Plan's principal address is 10 East 50th
Street, New York, New York 10022. The shares of Common Stock reported herein
as owned or acquired by MWV Plan pursuant to the Plan (as described in Items
3, 4 and 5 of this Amendment) were originally acquired pursuant to the Plan by
the Old Plan.
Phoenix and Betje are New York limited partnerships having their
principal address at 10 East 50th Street, New York, New York 10022. The
principal business of Phoenix and Betje is to invest in securities of U.S.
issuers. MW Management, a Delaware limited liability company, is the general
partner of Phoenix. The principal address of MW Management is 10 East 50th
Street, New York, New York 10022. Morgens and Waterfall are the managing
members of MW Management. All of the information concerning Morgens and
Waterfall is set forth below. Mr. Zanvyl Krieger ("Krieger") is the general
partner of Betje. The business address of Krieger is c/o Weinberg and Green,
100 South Charles Street, Baltimore, Maryland 21201. Krieger is a U.S.
citizen whose principal occupation is a private investor.
Morgens Waterfall is a New York corporation having its principal
address at 10 East 50th Street, New York, New York 10022. The business of
Morgens Waterfall is the rendering of financial services. Pursuant to an
investment advisory agreement, Krieger, as the general partner of Betje, has
authorized Morgens Waterfall to make investment decisions and to act on behalf
of Betje in carrying out Betje's investment objectives. In addition, Morgens
Waterfall provides discretionary investment advisory services to the Common
Fund and in that capacity has been granted full investment authority and
shared voting authority with the Common Fund with respect to securities
registered in the name of the Common Fund. Under rules promulgated by the
Securities and Exchange Commission, Morgens Waterfall may be considered a
"beneficial owner" of securities acquired by Betje or the Common Fund as a
result of its relationships with Betje and the Common Fund.
Page 25 of 38 Pages
<PAGE>
Waterfall is the President, Assistant Secretary and a Director of
Morgens Waterfall. Morgens is the Chairman of the Board of Directors and the
Secretary of Morgens Waterfall. The primary occupations of Morgens and
Waterfall are to act as the principals in the business of Morgens Waterfall.
The business address of Morgens and Waterfall, each of whom is a United States
citizen, is at the office of Morgens Waterfall at 10 East 50th Street, New
York, New York 10022. Morgens Waterfall has no other officers or directors.
During the past five years, none of the persons described in this Item
2 have been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors). During the last five years, none of such persons
has been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is 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 violations with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Under a Joint Plan of Reorganization of the Issuer pursuant to Chapter
11 of the Bankruptcy Code (the "Plan"), which became effective on June 30,
1993 (the "Effective Date"), MWIP, Restart, Restart II, Restart III, the
Common Fund, MWV Plan, Betje and Phoenix became entitled to receive as of the
Effective Date following shares of Common Stock upon surrender of an aggregate
of $33,407,000 principal amount of the Issuer's Floating Rate First Mortgage
Notes due November 1, 1993 (the "Notes") held by each of them as set forth
below. The shares of Common Stock reported below are adjusted for a ten-for-
one stock split on June 30, 1994 and a four-for-one stock split on November
16, 1995.
Shares of Common
Name Principal Amount of Notes Stock Issued
MWIP $ 1,153,000 43,920
Restart 7,403,000 282,000
Restart II 11,565,000 440,600
Restart III 7,838,000 298,600
Common Fund 2,386,000 90,880
MWV Plan 206,000 7,760
Betje 771,000 29,360
Phoenix 2,085,000 79,440
Total $33,407,000 1,272,560
Page 26 of 38 Pages
<PAGE>
ITEM 4. PURPOSE OF TRANSACTION.
Upon surrender of the Notes, MWIP, Restart, Restart II, Restart III, the
Common Fund, MWV Plan, Betje and Phoenix acquired Common Stock pursuant to the
Plan as an investment. The Reporting Persons have no present plan or
proposals that relate to or would result in any of the actions enumerated in
Item 4 of Schedule 13D, except as reported in Item 6 of this Amendment and in
Exhibit 1 attached to this Amendment, and subject to the following:
(i) If the transactions contemplated by the Letter (as discussed
in Item 6 below and as set forth in Exhibit 1 to this Amendment) do not occur,
the Reporting Persons may consider or pursue other plans or proposals to sell
their ownership interest in the Issuer.
(ii) The Reporting Persons reserve the right to buy additional
securities of the Issuer or sell securities of the Issuer from time to time.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) and (b) The following is the amount of Common Stock that is
beneficially owned by each Reporting Person:
Name Number of Shares Percentage of Class
MWIP 43,920 0.9
Restart 282,000 5.7
Restart II 440,600 9.0
Restart III 298,600 6.1
Common Fund 90,880 1.8
MWV Plan 7,760 0.2
Betje 29,360 0.6
Phoenix 79,440 1.6
Total 1,272,560 25.9
Morgens Waterfall does not directly own any Common Stock. Morgens
Waterfall may be deemed an indirect beneficial owner of 120,240 shares of
Common Stock by virtue of contracts with Betje (29,360 shares) and the Common
Fund (90,880 shares) pursuant to which Morgens Waterfall provides
discretionary investment advisory services. Either of Morgens or Waterfall,
as officers and directors of Morgens Waterfall, can exercise voting and
investment authority with respect to such Common Stock.
Prime does not directly own any Common Stock. Prime may be deemed an
indirect beneficial owner of 282,000 shares of Common Stock by virtue of its
position as general partner of Restart. Prime II does not directly own any
Common Stock. Prime II may be deemed an indirect beneficial owner of 440,600
shares of Common Stock by virtue of its position as general partner of Restart
II. Prime III does not directly own any Common Stock. Prime III may be
deemed an indirect beneficial owner of 298,600 shares of Common Stock by
virtue of its position as general partner of Restart III. Prime, Inc. does
not directly own any Common Stock. Prime, Inc. may be deemed an indirect
beneficial owner of 1,021,200 shares of Common Stock by virtue of its position
as general partner of Prime, Prime II and Prime III.
Page 27 of 38 Pages
<PAGE>
MW Capital does not directly own any Common Stock. MW Capital may be
deemed an indirect beneficial owner of 43,920 shares of Common Stock by virtue
of its position as general Partner of MWIP.
MW Management does not directly own any Common Stock. MW Management may
be deemed an indirect beneficial owner of 79,440 shares of Common Stock by
virtue of its position as general partner of Phoenix.
Krieger does not directly own any Common Stock. Krieger may be deemed
an indirect beneficial owner of 29,360 shares of Common Stock by virtue of his
position as general Partner of Betje. Krieger ultimately has the power to
direct the receipt of dividends from, or the proceeds from the sale of, Common
Stock owned by Betje.
Waterfall does not directly own any Common Stock. Waterfall may be
deemed an indirect beneficial owner of 1,264,800 shares of Common Stock by
virtue of his positions as President, Assistant Secretary and a Director of
Morgens Waterfall (120,240 shares); as a managing member of MW Capital, as
general partner of MWIP (43,920 shares); as President and a Director of Prime,
Inc., as general partner of each Prime, Prime II and Prime III, as general
partners of Restart (282,000 shares), Restart II (440,600 shares) and Restart
III (298,600 shares), respectively; and as a managing member of MW Management,
as general partner of Phoenix (79,440 shares).
Morgens does not directly own any Common Stock. Morgens may be deemed
an indirect beneficial owner of 1,264,800 shares of Common Stock by virtue of
his positions as Chairman of the Board of Directors and Secretary of Morgens
Waterfall; as a managing member of MW Capital, as general partner of MWIP; as
Chairman of the Board of Directors and Secretary of Prime, Inc., as general
partner of each of Prime, Prime II and Prime III, and as general partners of
Restart, Restart II and Restart III, respectively; and as a managing member of
MW Management, as general partner of Phoenix. The Common Stock owned by each
of those Reporting Persons is reported in the preceding paragraph.
The Trustees do not directly own any of the Common Stock. Each of the
Trustees may be deemed an indirect beneficial owner of 7,760 shares of Common
Stock by virtue of their positions as trustees of MWV Plan, pursuant to which
they share the power to exercise voting and investment authority with respect
to the Common Stock owned by MWV Plan.
Each Reporting Person hereby disclaims that it has any beneficial
ownership of the securities owned, directly or indirectly, by any other
entity.
(c) There has been no reportable transactions involving the Common
Stock by the Reporting Persons during the past 60 days.
(d) Except as set forth in parts (a) and (b) of this Item and in Item 2
above, no other person is known to have the right to receive or the power to
direct the receipt of dividends from or the proceeds from the sale of, the
Common Stock.
(e) Not applicable.
Page 28 of 38 Pages
<PAGE>
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO THE SECURITIES OF THE ISSUER.
None of the persons identified in Item 2 above is a party to any
contract, arrangement, understanding or relationship with respect to any
securities of the issuer, except (a) to the extent described in Item 2 and 5
of this Amendment; (b) to the extent described in the next paragraph of this
Item 6 and as set forth in Exhibit 1 to this Amendment; and (c) the Equity
Registration Rights Agreement attached as Exhibit C to the Statement.
On April 1, 1997, Waterfall, on behalf of Morgens Waterfall and the
Reporting Persons named in Item 2 above who own Common Stock, issued a letter
and accompanying attachments (collectively, the "Letter") stating, among other
things, that subject to the terms and conditions set forth in the Letter, such
Reporting Persons are willing to offer to Allen Paulson or to an entity he
controls an option to purchase the Reporting Persons' respective ownership
interests in the Issuer and in Elsinore Corporation, a Nevada corporation. A
copy of the Letter is attached as Exhibit 1 to this Amendment and is
incorporated by reference into this Item 6.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
EXHIBIT 1 Joint Acquisition Statement among the Reporting Persons dated April
10, 1997, filed pursuant to Rule 13d-1(f)(1) under the Securities Exchange Act
of 1934, as amended.
EXHIBIT 2 Letter dated April 1, 1997 and attachments thereto issued by
Waterfall, on behalf of Morgens Waterfall and the Reporting Persons who own
Common Stock, to Jeffries & Company, Inc.
EXHIBIT 3 INCORPORATED BY REFERENCE: Power of Attorney, dated December 15,
1993, granted to Morgens and Waterfall by the following parties: Waterfall;
Phoenix; MWIP; Betje; Phaeton International N.V.; Morgens, Waterfall,
Vintiadis Investments N.V.; the Common Fund; Morgens Waterfall; Restart;
Restart II; Restart III; Restart IV, L.P.; Morgens Waterfall, Vintiadis & Co.,
Inc. Employees' Profit Sharing Plan; and Morgens, for the specific purpose of
executing on their behalf any Schedule 13Ds and amendments thereto for filing
with the Commission pursuant to the requirements of Rule 13d-1(f)
(incorporated by reference to Exhibit A of Amendment No. 2 to Schedule 13D
filed on December 22, 1993 by Phoenix; Betje; Phaeton International N.V.;
Morgens, Waterfall, Vintiadis Investments N.V.; Morgens Waterfall; Morgens;
and Waterfall with respect to the common stock, par value $.01 per share, of
Sudbury, Inc.).
EXHIBIT 4 Power of Attorney, dated April 10, 1997, granted to Morgens and
Waterfall by MWV Plan; MW Capital; Prime; Prime II; Prime III; Prime Group IV,
L.P.; Prime Group V, L.P.; Prime Inc.; and MW Management for the specific
purpose of executing on their behalf any Schedule 13Ds and amendments thereto
for filing with the Commission pursuant to the requirements of Rule 13d-1(f)
(incorporated by reference to Exhibit 6 of Amendment No. 1 to Schedule 13D
filed on April 10, 1997 by MWIP; Restart, Restart II, Restart III; Restart IV,
L.P.; Restart V, L.P.; the Common Fund; MWV Plan; Betje; Phoenix; Morgens
Waterfall; MW Capital Management; Waterfall; and Morgens with respect to the
common stock, par value $.001 per share, of Elsinore Corporation).
Page 29 of 38 Pages
<PAGE>
SIGNATURES
After reasonable inquiry and to the best knowledge and belief of each
of the Reporting Persons, each such person or entity certifies that the
information set forth in this statement is true, complete and correct and
agrees that this statement is filed on behalf of each of them.
The Reporting Persons listed herein
s/Bruce Waterfall
Dated: April 10, 1997 By: ___________________________________
John C. "Bruce" Waterfall, on his
own behalf and as attorney-in-fact
for each of the other Reporting
Persons
Page 30 of 38 Pages
EXHIBIT 1
JOINT ACQUISITION STATEMENT
PURSUANT TO RULE 13d-1(f)(1)
The undersigned acknowledge and agree that the foregoing Amendment No. 1 to
the statement on Schedule 13D is filed on behalf of each of the undersigned
and that all subsequent amendments to the statement on Schedule 13D shall be
filed on behalf of each of the undersigned without the necessity of filing
additional joint acquisition statements. The undersigned acknowledge that
each shall be responsible for the timely filing of such amendments, and for
the completeness and accuracy of the information concerning it contained
therein, but shall not be responsible for the completeness and accuracy of the
information concerning the others, except to the extent that it knows or has
reason to believe that such information is inaccurate.
The Reporting Persons listed herein
Dated: April 10, 1997 By: /s/ Bruce Waterfall
___________________________________
John C. "Bruce" Waterfall, on his
own and as attorney-in-fact for
each of the other Reporting Persons
Page 31 of 38 Pages
EXHIBIT 2
MORGENS, WATERFALL, VINTIADIS & COMPANY, INC.
April 1, 1997
Jefferies & Company, Inc.
11100 Santa Monica Boulevard
10th Floor
Los Angeles, CA 90025
Attention: Brent Stevens
Dear Sirs:
This letter will confirm that certain investment advisory accounts
managed by Morgens, Waterfall, Vintiadis & Co., are willing to offer an option
to purchase the shares of Riviera Holding[s] Corporation owned by them to an
entity to be formed by Allen Paulson on substantially the terms attached
hereto. This offer shall be subject to the negotiation, preparation, mutual
execution and delivery of a definitive option agreement satisfactory to us.
The attached term sheet is not intended and should not be construed to
constitute a complete statement of, or as a legal[,] binding or enforceable
contract, agreement or commitment on the part of the undersigned.
Sincerely,
s/Bruce Waterfall
Page 32 of 38 Pages
<PAGE>
TERM SHEET (FOR DISCUSSION PURPOSES ONLY - APRIL 1, 1997)
A. Parties:
NewCo, an entity controlled by Mr. Allen Paulson (collectively, "Purchaser");
certain advisory clients of Morgens, Waterfall, Vintiadis & Company, Inc.
(collectively, "Morgens Waterfall"); Stein Roe & Farnham, Incorporated as
advisor ("Stein Roe"); and Sun Life Insurance Company ("Sun Life" and,
together with Morgens Waterfall and Stein Roe, "Seller").
B. Stock to be Acquired:
Acquisition by Purchaser of all 1,272,560 [Riviera Holdings Corporation,
hereinafter "R. Corp"] shares held by Morgens Waterfall representing
approximately 24% of R. Corp. calculated on a fully diluted basis, all 857,160
R. Corp. shares held by Stein Roe representing approximately 17% of R. Corp.
calculated on a fully diluted basis, and all 761,920 R. Corp. shares held by
Sun Life representing approximately 15% of R. Corp. calculated on a fully
diluted basis (collectively, the "Shares").
C. Purchase Price:
Cash purchase price (the "Purchase Price") equal to $15 per share (less all
dividends other than stock dividends and subject to adjustment for other
distributions, stock splits, stock dividends, share issuances below the
Purchase Price on a per share basis or repurchases and certain other changes
to capitalization, in each case mutually agreeable to the parties). The
Purchase Price shall be allocated as follows: (i) in the case of Morgens
Waterfall, $19,088,400; (ii) in the case of Stein Roe, $12,857,400; and (iii)
in the case of Sun Life, $11,428,800.
D. Option Price/Period:
Subject to approval by the Board of Directors of R. Corp., Purchaser and
Seller shall, on or before April 30, 1997, enter into an option agreement (the
"Option Agreement") granting Purchaser or its nominee the option to purchase
all of the Shares (the "Option"). Purchaser shall post a clean, irrevocable
letter of credit issued by an issuer acceptable to Seller upon terms and
conditions acceptable to Seller and payable upon presentation of a sight draft
by Seller ("L/C"), on the date of Purchaser's execution and delivery of the
Option Agreement to Seller (the "Commencement Date"), calculated at 20% of the
Purchase Price. The L/C shall be allocated as follows: (i) in the case of
Morgens Waterfall, $3,817,680; (ii) in the case of Stein Roe, $2,571,480; and
(iii) in the case of Sun Life, $2,285,760. The L/C shall be unconditionally
payable upon expiration of the Option except if Refund Events (as defined
below) occur. "Refund Events" mean (i) Purchaser's inability to acquire, on
terms set forth in the Option Agreement, options to acquire that number of
shares which, when exercised and combined with the number of R. Corp. shares
Page 33 of 38 Pages
<PAGE>
currently owned by Purchaser or its affiliates, will equal at least 60% of the
issued and outstanding shares of R. Corp. or (ii) breach by the Seller of any
covenant contemplated hereby. The Option shall be exercisable in whole, but
not in part until the earlier of (x) April 1, 1998 or (y) eight weeks from the
date on which all necessary regulatory approvals, including licensing or
finding of suitability of Purchaser by the Nevada Gaming Commission, approval
of changes of control of R. Corp. by the Nevada Gaming Commission, Hart-Scott-
Rodino approvals, and any necessary third party consents (collectively, the
"Approvals"), have been obtained without any burdensome conditions or effect.
The option will not be exercisable, if in so doing such exercise would be a
violation of applicable law. The Option shall be exercisable thereafter until
the earlier of (x) April 1, 1998 or (y) eight weeks from the date that all
Approvals have been obtained. During the period from the Commencement Date
until the closing of the transactions contemplated hereby (the "Closing") or
the expiration of the Option, Purchaser shall make to Seller monthly non-
refundable payments of interest at the rate of 10% per annum on the Purchase
Price. The Closing shall take place on the earlier of (1) April 1, 1998 or
(2) eight weeks from the date on which all Approvals have been obtained.
E. Exclusivity:
From the Commencement Date until the Closing or expiration of the Option,
neither Seller nor any of its respective affiliates or representatives shall
solicit, initiate, encourage or participate in discussions concerning any
proposal or offer from any person or entity relating to any acquisition or
purchase of all or a material amount of the assets of, or any equity interest
in, R. Corp., or any merger, consolidation or business combination with R.
Corp. R. Corp. shall not be deemed an affiliate or representative of Seller
for purposes of the foregoing restriction. Seller shall enter into customary
voting agreements.
F. Publicity:
No party hereto shall make any public announcement with respect to the subject
matter hereof without the consent of the other parties hereto except to the
extent such public announcement may be required by applicable law.
G. Fees and Expenses:
All reasonable out of pocket fees and expenses including, without limitation,
commissions, legal fees and expenses arising in connection with the
transaction contemplated hereby shall be paid by Purchaser promptly upon
receipt of reasonably detailed statements therefor.
Page 34 of 38 Pages
<PAGE>
TERM SHEET (FOR DISCUSSION PURPOSES ONLY - APRIL 1, 1997)
A. Parties:
NewCo, an entity controlled by Mr. Allen Paulson (collectively "Purchaser"),
and certain advisory clients of Morgens, Waterfall, Vintiadis & Company, Inc.
(collectively "Seller").
B. Basic Structure:
Acquisition of all 4,646,440 of the [Elsinore Corporation, hereinafter, "E.
Corp."] Shares held by Seller representing 94.3% of the currently issued and
outstanding common stock of E. Corp. (the "Shares").
C. Purchase Price:
Cash purchase price (the "Purchase Price") equal to $3.10 per share (less all
dividends other than stock dividends and subject to adjustment for other
distributions, stock splits, stock dividends, share issuances below the
Purchase Price on a per share basis or repurchases and certain other changes
to capitalization, in each case mutually agreeable to the parties). - See
Schedule A.
D. Option Price/Period:
Subject to approval by the Board of Directors of E. Corp. (to the extent
required by applicable law), Purchaser and Seller shall, on or before April
30, 1997, enter into an option agreement (the "Option Agreement") granting
Purchaser or its nominee the option to purchase all of the Shares (the
"Option"). Purchaser shall post a clean, irrevocable letter of credit issued
by an issuer acceptable to Seller upon terms and conditions acceptable to
Seller and payable upon presentation of a sight draft by Seller ("L/C"), on
the date of Purchaser's execution and delivery of the Option Agreement to
Seller (the "Commencement Date"), calculated at 20% of the Remaining Equity
Value (as defined in Schedule A). The L/C shall be unconditionally payable
upon expiration of the Option except if Refund Events (as defined below)
occur. "Refund Events" mean (i) Purchaser's inability to acquire, on terms
set forth in the Option Agreement, options to acquire that number of shares
which, when exercised and combined with the number of R. Corp. shares
currently owned by Purchaser or its affiliates, will equal at least 60% of the
issued and outstanding shares of R. Corp. or (ii) breach by the Seller of any
covenant contemplated hereby. The Option shall be exercisable until the
earlier of (x) April 1, 1998 or (y) eight weeks from the date on which all
necessary regulatory approvals, including licensing or finding of suitability
of Purchaser by the Nevada Gaming Commission, approval of changes of control
of E. Corp. by the Nevada Gaming Commission, Hart-Scott-Rodino approvals, and
any necessary third party consents (collectively, the "Approvals"), have been
obtained without any burdensome conditions or effect. The Option will not be
exercisable, if in so doing such exercise would be a violation of applicable
law. The Option shall be exercisable thereafter until the earlier of (x)
April 1, 1998 or (y) eight weeks from the date that all Approvals have been
obtained.
Page 35 of 38 Pages
<PAGE>
TERM SHEET (FOR DISCUSSION PURPOSES ONLY - APRIL 1, 1997)
During the period from the Commencement Date until the closing of the
transactions contemplated hereby (the "Closing") or the expiration of the
Option, Purchaser shall make to Seller monthly non-refundable payments of
interest at the rate of 10% per annum on the Remaining Equity Value. The
Closing shall take place on the earlier of (1) April 1, 1998 or (2) eight
weeks from the date on which all Approvals have been obtained.
E. Undertaking as to
Certain Future Events:
Subject to agreed upon exceptions, Purchaser shall provide an undertaking that
if, within a time period to be agreed upon not exceeding two years following
the Closing, (i) E. Corp. is a party to a merger, consolidation or other
business combination (each, a "Transaction") with Purchaser or an affiliate of
Purchaser, or (ii) Purchaser or an affiliate of Purchaser makes an offer
("Offer") to purchase any of the outstanding shares of E. Corp. common stock
held by persons who are not affiliated with Purchaser (the "Remaining Stock"),
the per share consideration paid to the holders of the Remaining Stock in the
Transaction or the per share price of the Offer, as the case may be, shall not
be less than the per share Purchase Price.
F. Exclusivity:
Neither Seller nor any of its respective affiliates or representatives shall
solicit, initiate, encourage or participate in discussions concerning any
proposal or offer from any person or entity relating to any acquisition or
purchase of all or a material amount of the assets of, or any equity interest
in, E. Corp. or any merger, consolidation or business combination with E.
Corp. E. Corp. shall not be deemed an affiliate or representative of Seller
for purposes of the foregoing restriction. Purchaser and Seller shall enter
into customary voting agreements and a mutually agreed upon lock-up.
G. Publicity:
Neither party shall make any public announcement with respect to the subject
matter hereof without the consent of the other party hereto except to the
extent such public announcement may be required by applicable law.
H. Fees and Expenses:
All reasonable out of pocket fees and expenses including, without limitation,
commissions, legal fees and expenses arising in connection with the
transaction contemplated hereby shall be paid by Purchaser promptly upon
receipt of reasonably detailed statements therefor.
Page 36 of 38 Pages
<PAGE>
TERM SHEET (FOR DISCUSSION PURPOSES ONLY - APRIL 1, 1997)
Schedule A
----------
E. Corp. Adjusted Enterprise Value. . . . . $ 55.30
Total Debt as of Confirmation Date(1). . . 38.00
Implied Equity Value(1). . . . . . . . . 17.30
Less: Option Value. . . . . . . . . . . . 2.00
----------
Remaining Equity Value. . . . . . . . . . . $ 15.30
----------
Shares Outstanding. . . . . . . . . . . . . 4,929,313
Price Per Share(1). . . . . . . . . . . . . $ 3.10
Option Value Calculation:
Equity Value. . . . . . . . . . . . . . . 17.30
Strike price. . . . . . . . . . . . . . . 5.00 (Per option agree-
---------- ment, strike price
is
equal to the greater
Gross Option Value. . . . . . . . . . . . 12.30 of Book Value per
share or $5.00[])
Percentage. . . . . . . . . . . . . . . . 16.7%
Value to R. Corp. . . . . . . . . . . . . $ 2.00
_________________________
(1) Subject to adjustment based on actual total debt outstanding at April 1,
1997 and settlement of option interpretation.
Page 37 of 38 Pages
EXHIBIT 4
POWER OF ATTORNEY
The undersigned hereby appoint Edwin H. Morgens and John C. "Bruce"
Waterfall each with full power of substitution, as their attorneys-in-fact for
the specific purpose of executing on their behalf any Schedule 13Ds and
amendments thereto for filing with the Securities and Exchange Commission
pursuant to the requirements of Rule 13d-1(f) under the Securities Exchange
Act of 1934, as amended. The undersigned hereby ratify the execution on their
behalf, prior to the date hereof, by Edwin H. Morgens or John C. "Bruce"
Waterfall of any Schedule 13Ds or amendments thereto for the aforesaid
purpose.
IN WITNESS WHEREOF, the undersigned have caused this Power of Attorney
to be duly executed as of April 10, 1997.
MWV EMPLOYEE RETIREMENT
PLAN GROUP TRUST MW CAPITAL, L.L.C.
PRIME GROUP, L.P.
PRIME GROUP II, L.P.
PRIME GROUP III, L.P.
s/David Ericson PRIME GROUP IV, L.P.
By: ______________________________ PRIME GROUP V, L.P.
David Ericson, Trustee PRIME, INC.
MW MANAGEMENT, L.L.C.
s/Dan Levinson s/Bruce Waterfall
By: ______________________________ By: _________________________
Dan Levinson, Trustee John C. "Bruce" Waterfall
as (i) managing member of
MW Capital, L.L.C.;
s/John C. Raphael (ii) President of Prime,
By: ______________________________ Inc., as general partner
John C. Raphael, Trustee of Prime Group, L.P.,
Prime Group II, L.P.,
s/Joann McNiff Prime Group, III, L.P.,
By: ______________________________ Prime Group IV, L.P. and
Joann McNiff, Trustee Prime Group V, L.P.; and
(iii) managing member of
MW Management, L.L.C.
s/Stephanie Catlett
By: ______________________________
Stephanie Catlett, Trustee
Page 38 of 38 Pages
