SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
Amendment No. 6
American Resources of Delaware, Inc.
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(Name of Issuer)
Common Stock ($.00001 Par Value)
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(Title of Class of Securities)
02926 U 30 8
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(CUSIP No.)
Leonard K. Nave
Rick G. Avare
160 Morgan Street
Versailles, KY 40383
(606) 873-5455
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Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications
Various
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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
Statement and is filing this Statement because of Rule
13d-1 (b)(3) or (4), check the following box: ( )
Check the following box if a fee is being paid with this
Statement: ( )
Page 1 of 10 Pages
<PAGE>
CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Leonard K. Nave, Trustee
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
--------
(b) X
--------
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3. SEC USE ONLY
- -----------------------------------------------------------------
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
USA
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Number of 7. SOLE VOTING POWER
Shares None
------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By 443,623
------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting None
------------------------------
Person 10. SHARED DISPOSITIVE POWER
443,623
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
Leonard K. Nave, Trustee, beneficially owns 443,623 shares
of common stock of American Resources of Delaware, Inc.
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
----------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3%
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14. TYPE OF REPORTING PERSON
IN
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Page 2 of 10 Pages
<PAGE>
CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Southern Gas Holding Company, Inc.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
61-1200618
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
--------
(b) X
--------
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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
Kentucky
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Number of 7. SOLE VOTING POWER
Shares None
------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By 443,623
------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting None
------------------------------
Person 10. SHARED DISPOSITIVE POWER
443,623
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
Southern Gas Holding Co. beneficially owns 443,623 shares of
common stock of American Resources of Delaware, Inc.
- -----------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
----------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.3%
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14. TYPE OF REPORTING PERSON
CO
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Page 3 of 10 Pages
<PAGE>
CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Leonard K. Nave
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
###-##-####
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
--------
(b) X
--------
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
BK, PF, OO
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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
USA
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Number of 7. SOLE VOTING POWER
Shares 304,839
------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By 443,623
------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting 304,839
------------------------------
Person 10. SHARED DISPOSITIVE POWER
443,623
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
Leonard K. Nave beneficially owns 748,462 shares of common
stock of American Resources of Delaware, Inc.
- -----------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
----------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.1%
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14. TYPE OF REPORTING PERSON
IN
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Page 4 of 10 Pages
<PAGE>
CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Rick G. Avare
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
###-##-####
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
--------
(b) X
--------
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
BK, PF, OO, SC
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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
USA
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Number of 7. SOLE VOTING POWER
Shares 1,410,528
------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By 646,722
------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting 1,410,528
------------------------------
Person 10. SHARED DISPOSITIVE POWER
646,722
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
Rick G. Avare beneficially owns 2,057,250 shares of common
stock of American Resources of Delaware, Inc.
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
----------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.8%
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14. TYPE OF REPORTING PERSON
IN
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Page 5 of 10 Pages
<PAGE>
CUSIP NO. 13D
02926 U 30 8
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1. NAME OF REPORTING PERSON
Prima Capital LLC
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
61-1278562
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a)
--------
(b) X
--------
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3. SEC USE ONLY
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4. SOURCE OF FUNDS
PF, 00
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2 (D) OR 2 (E)
----------
- -----------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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Number of 7. SOLE VOTING POWER
Shares 645,588
------------------------------
Beneficially 8. SHARED VOTING POWER
Owned By NONE
------------------------------
Each 9. SOLE DISPOSITIVE POWER
Reporting 645,588
------------------------------
Person 10. SHARED DISPOSITIVE POWER
None
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
Prima Capital LLC beneficially owns 645,588 shares of common
stock of American Resources of Delaware, Inc.
- -----------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
SHARES
----------
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.3%
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14. TYPE OF REPORTING PERSON
OO
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Page 6 of 10 Pages
<PAGE>
ITEM 1. Security and Issuer.
-------------------
Not Amended.
ITEM 2. Identity and Background.
-----------------------
Not Amended.
ITEM 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
Item 3 is amended to add the following at the end thereof:
On February 17, 1998, Southern Gas Holding Company, Inc.
(Holding) and Mr. Avare entered into a Loan Agreement under which
Mr. Avare agreed to sell and Holding agreed to buy the Nave claim
(as described in Exhibit 6-1 attached hereto). A portion of the
claim was assigned by Mr. Avare to Douglas L. Hawthorne. As
partial consideration for the acquisition of the claim, Holding
agreed to convey 200,000 shares of Common Stock in
American Resources of Delaware, Inc. to Messrs. Avare and
Hawthorne. The transaction closed on July 21, 1998, and Holding
transferred 140,000 shares and 60,000 shares to Messrs. Avare and
Hawthorne, respectively. A copy of the Loan Agreement is
attached hereto as Exhibit 6-1 and incorporated herein.
ITEM 4. Purpose of Transaction.
----------------------
Not Amended.
ITEM 5. Interest in Securities of the Issuer.
------------------------------------
Item 5 is amended to read as follows:
(a) At July 31, 1998, 10,251,853 shares of Common Stock
were issued and outstanding. The reporting persons identified in
ITEM 2 above, beneficially own the following shares of ARI Common
Stock:
Page 7 of 10 Pages
<PAGE>
Reporting Person No. Shares Percent
---------------- ---------- -------
Southern Gas Holding 443,623 4.3%
Leonard K. Nave, Trustee 443,623 4.3%
Leonard K. Nave 748,462 7.1%
Rick G. Avare 2,057,250 18.8%
Prima Capital LLC 645,588 6.3%
(b) The reporting persons have the following sole or shared
power = to vote shares of ARI Common Stock ("Voting Power") and
the sole or shared power to = dispose of shares of ARI Common
Stock ("Investment Power"):
Southern Gas Holding:
Sole Voting Power None
Shared Voting Power 443,623 (1)
Sole Investment Power None
Shared Investment Power 443,623 (1)
Leonard K. Nave, Trustee:
Sole Voting Power None
Shared Voting Power 443,623 (1)
Sole Investment Power None
Shared Investment Power 443,623 (1)
Leonard K. Nave:
Sole Voting Power 304,839 (2)
Shared Voting Power 443,623 (1)
Sole Investment Power 304,839 (2)
Shared Investment Power 443,623 (1)
Rick G. Avare:
Sole Voting Power 1,410,528 (3)
Shared Voting Power 646,722 (4)
Sole Investment Power 1,410,528 (3)
Shared Investment Power 646,722 (4)
Prima Capital LLC:
Sole Voting Power None
Shared Voting Power 645,588 (5)
Sole Investment Power None
Shared Investment Power 645,588 (5)
Page 8 of 10 Pages
<PAGE>
Footnotes:
(1) Shares owned of record by Southern Gas Holding Company,
Inc.
(2) Shares and options to purchase shares owned of record
by Leonard K. Nave, individually.
(3) Shares, options and conversion rights owned of record
by Rick G. Avare.
(4) 645,588 shares owned of record by Prima Capital LLC,
and 1,134 shares owned of record by JJR Investments.
(5) Shares owned of record by Prima Capital LLC.
Leonard K. Nave disclaims the beneficial ownership of 60% of
the shares of Common Stock owned of record by Southern Gas
Holding Company, Inc. Rick G. Avare disclaims the beneficial
ownership of 80% of the shares of Common Stock owned of record by
Prima Capital LLC. The filing of this Schedule 13D shall not be
construed as an admission by either Leonard K. Nave or Rick G.
Avare that such persons, for the purposes of Section 13(d) or
13(g) of the Securities Exchange Act of 1934, as amended, is the
beneficial owner of such shares of Common Stock.
ITEM 6. Contracts, Arrangements, Understandings or
------------------------------------------
Relationships With Respect to Securities of the Issuer.
- ------------------------------------------------------
Not amended.
ITEM 7. Material to be Filed as Exhibits.
--------------------------------
The following exhibit is attached hereto.
Exhibit 6-1 Loan Agreement entered into on February 17,
----------- 1998, among Rick G. Avare and Southern Gas
Holding Company, Inc.
Page 9 of 10 Pages
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of our knowledge
and belief, we certify that the information set forth in this
statement is true, complete and correct.
Date: August 24, 1998
/s/ Leonard K. Nave
-----------------------------------
Leonard K. Nave, Individually
/s/ Leonard K. Nave
-----------------------------------
Leonard K. Nave, Trustee
/s/ Rick G. Avare
-----------------------------------
Rick G. Avare, Individually
Southern Gas Holding Company, Inc.
By: /s/ Leonard K. Nave
--------------------------------
Leonard K. Nave
President
Prima Capital LLC
By: /s Rick G. Avare
--------------------------------
Rick G. Avare
Administrative Member
Page 10 of 10 Pages
<PAGE>
Exhibit 6-1
LOAN AGREEMENT
This Loan Agreement (the "Agreement") entered into this 17th
day of February, 1998 by and between Rick G. Avare ("Avare") and
Southern Gas Holding Company, Inc. ("Southern").
RECITALS
WHEREAS, Leonard K. Nave ("Nave") filed for protection from
his creditors pursuant to Chapter 11 of the United States
Bankruptcy Code (the "Nave Bankruptcy"); and
WHEREAS, Sequa Financial, Inc. ("Sequa") has filed a proof
of claim in the Nave Bankruptcy in the approximate amount of One
Million Six Hundred Thousand Dollars (the "Claim"); and
WHEREAS, Sequa has offered to sell the Claim to Avare for
the sum of Seven Hundred Fifty Thousand Dollars ($750,000), which
shall be paid at the time of Closing (the "Purchase Price"); and
WHEREAS, Southern has agreed to loan Avare Two Hundred and
Fifty Thousand Dollars ($250,000) and Two Hundred Thousand
(200,000) shares of American Resources of Delaware, Inc. common
stock; and
WHEREAS, Avare has agreed to sell and Southern has agreed to
purchase the Claim after the conveyance to Avare from Sequa; and
WHEREAS, the parties wish to memorialize their understanding
in this Agreement.
WITNESSETH
NOW THEREFORE, in consideration as more fully set forth
herein the parties agree as follows:
1. Loan Commitment. Southern hereby agrees to loan Avare
the sum of Two Hundred and Fifty Thousand Dollars ($250,000)
which shall be evidenced by the promissory note (the "Note")
attached hereto and incorporated herein by reference as Exhibit
"A". The Note shall mature upon the earlier of (i) one year from
the date hereof or (ii) the assignment of the Claim by Avare to
Southern. The Note shall be non-recourse to Avare and secured by
the Claim.
2. ARI Stock. Southern hereby agrees to loan Avare Two
Hundred Thousand (200,000) shares of common stock in American
Resources of Delaware, Inc. (the "ARI Stock"). Southern retains
the right to terminate this loan within five business days after
Avare receives written notice of Southern's intention to
terminate. Southern shall execute
<PAGE>
a blank Stock Power Agreement and further agrees and stipulates
that Avare may utilize the ARI stock in any form or fashion he
deems appropriate; however, upon termination of this Agreement as
provided for in this section. Avare shall return the ARI stock to
Southern. The loan of the ARI stock shall bear interest at the
rate of 6% based on a current value of Five Hundred Thousand
Dollars ($500,000.00) for the ARI stock. Said interest shall
accrue during the term of this Agreement and shall be payable via
Section 3 of this Agreement.
3. Assignment of Claim. The parties agree that within one
year Avare shall have the right to assign the Claim to Southern
and Southern agrees, upon Avare's election to assign the Claim,
that it will accept said assignment in exchange for the release
of all monies due Southern pursuant to the non-recourse Note and
the retention of Avare of the ARI stock and the release of any
and all interest owed to Southern for the loan of the ARI stock
to satisfy the Claim. Upon said assignment all monies or stock
loaned to Avare pursuant to this Agreement shall be deemed paid
in full.
4. Waiver of Representations and Warranties. SOUTHERN
HEREBY STIPULATES AND AGREES THAT AVARE HAS MADE NO
REPRESENTATION OR WARRANTY AS TO THE CLAIM INCLUDING, BUT NOT
LIMITED TO, THE FINANCIAL ABILITY OF LEONARD K. NAVE TO SATISFY
THE CLAIM, THE COLLECTIBILITY OF ANY CLAIM, THE AMOUNT OF THE
CLAIM OR ANY OTHER REPRESENTATION OR WARRANTY THAT WOULD PROVIDE
FOR COLLECTION OF THE CLAIM FROM LEONARD K. NAVE. SOUTHERN
FURTHER STIPULATES AND AGREES THAT UPON CONVEYANCE OF THE CLAIM
BY AVARE TO SOUTHERN THAT IT WILL TAKE NO ACTION OR ASSERT ANY
CLAIM OR CAUSE OF ACTION AGAINST AVARE ARISING OUT OF THIS
AGREEMENT OR THE ASSIGNMENT OF THE CLAIM.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the date and year first above
written.
/s/ Rick G. Avare
-----------------------------------
Rick G. Avare
SOUTHERN GAS HOLDING COMPANY, INC.
By: /s/ Leonard K. Nave
--------------------------------
Its: President
-------------------------------
