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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)
----------
QUALITY DINING, INC.
(Name of Issuer)
Common Stock, no par value 747456P 10 5
(Title of class of securities) (CUSIP number)
David W. Schostak
NBO, LLC
25800 Northwestern Highway
Suite 750
Southfield, Michigan 48075
(248) 357-6126
(Name, address and telephone number of person authorized
to receive notices and communications)
October 1, 1999
(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 that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 12 pages)
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819103 v.2
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<S> <C> <C> <C> <C> <C>
CUSIP No. 747456P 10 5 13D Page 2 of 12 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON NBO, LLC
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
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 ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Michigan
- ---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ---------------------- -------------------------------------------------------------------------------------------------------
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CUSIP No. 747456P 10 5 13D Page 3 of 12 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Jerome L. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 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: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
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<S> <C> <C> <C> <C> <C>
CUSIP No. 747456P 10 5 13D Page 4 of 12 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON David W. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 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: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
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CUSIP No. 747456P 10 5 13D Page 5 of 12 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Robert I. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 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: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
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CUSIP No. 747456P 10 5 13D Page 6 of 12 Pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Mark S. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 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: 1,200,000
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,200,000
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.4%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
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This Amendment No. 1 ("Amendment No. 1") amends the Statement on
Schedule 13D (the "Schedule 13D") filed on March 26, 1999 by and on behalf of
the following persons: NBO, LLC ("NBO"), Jerome L. Schostak, David W. Schostak,
Robert I. Schostak and Mark S. Schostak (collectively, the "Schostaks" and
together with NBO, the "Reporting Persons"). Except as otherwise indicated,
capitalized terms used herein and not defined herein have the meanings ascribed
thereto in the Schedule 13D. As used herein, the "Company" or the "Issuer" shall
mean Quality Dining, Inc.
ITEM 4. PURPOSE OF TRANSACTION.
By letter dated October 1, 1999 from NBO to the Company's Board of
Directors, NBO expressed its view that the Company does not have meaningful
prospects for enhancing shareholder value as a public company and formally
requested a meeting with the Board to discuss a possible acquisition of the
Company by NBO or its affiliates. NBO indicated its belief that it could
conclude such an acquisition at a price substantially in excess of the current
trading prices of the Shares. NBO also indicated that it wishes to work with the
Board in developing a plan that will benefit all shareholders and that such a
result can best be achieved by mutual cooperation and the exchange of ideas. NBO
reserved the right, however, to make an acquisition proposal directly to the
Company's shareholders, initiate shareholder proposals in favor of a sale or
other disposition of the Company or its assets and/or nominate a slate of
directors who would pursue such alternatives. A copy of such letter is attached
as an exhibit hereto and is incorporated herein by reference.
Except as indicated above, the information set forth in Item 4 of the
Schedule 13D remains unchanged.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) As of the date of this Statement, NBO beneficially owned in the
aggregate 1,200,000 Shares constituting 9.4% of the outstanding Shares (the
percentage of Shares owned being based upon 12,754,996 Shares outstanding on
September 14, 1999, as set forth in the Company's Quarterly Report on Form 10-Q
for the fiscal quarter ended August 1, 1999).
Each of the Schostaks, as a member of NBO, may be deemed to
beneficially own Shares which NBO beneficially owns. Each of the Schostaks
disclaims beneficial ownership of such Shares for all other purposes.
(b) The responses to Items 7-11 on each of pages 2-6 hereof which
relate to voting and disposition of Shares with respect to each Reporting Person
are incorporated herein by reference.
(c) The Reporting Persons have not engaged in any transactions in the
Shares during the past sixty days.
(d) 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 Shares.
7
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(e) Not applicable.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
The following Exhibit is filed herewith:
2. Letter, dated October 1, 1999, from NBO to the Board of
Directors of the Company.
8
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SIGNATURES
The undersigned, after reasonable inquiry and to the best of their knowledge and
belief, certify that the information set forth in this Statement is true,
complete and correct.
Dated: October 5, 1999
NBO, LLC
By: /s/ David W. Schostak
---------------------------------------
David W. Schostak, Member
By: /s/ Jerome L. Schostak
---------------------------------------
Jerome L. Schostak
By: /s/ David W. Schostak
---------------------------------------
David W. Schostak
By: /s/ Robert I. Schostak
---------------------------------------
Robert I. Schostak
By: /s/ Mark S. Schostak
---------------------------------------
Mark S. Schostak
9
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EXHIBIT INDEX
Exhibit No. DESCRIPTION
----------- -----------
2. Letter, dated October 1, 1999,
from NBO to the Board of
Directors of the Company.
10
EXHIBIT 2
NBO, LLC
25800 Northwestern Highway
Suite 750
Southfield, Michigan 48075
(248) 357-6126
(248) 357-6116 (Fax)
October 1, 1999
Board of Directors
Quality Dining, Inc.
4220 Edison Lakes Parkway
Milshawaka, Indiana 46545
Dear Directors:
As you know, NBO, LLC is the holder of 1,200,000 shares, or
approximately 9.5%, of Quality Dining's common stock, making us the Company's
largest outside shareholder. The principals of NBO are members of the Schostak
family who also own a full service real estate development and management
company that currently owns and manages more than 7.5 million square feet of
retail, commercial and industrial properties in the Midwest, and an entity that
owns and operates a Burger King franchise presently consisting of 63 restaurants
in the State of Michigan.
Since March of this year, our representatives have had several
discussions with Dan Fitzpatrick, the Company's Chairman, President and Chief
Executive Officer, to express their disappointment with Quality Dining's
financial performance and stock price and to discuss possible strategic
alternatives that we believe would enable Quality Dining to enhance shareholder
value. Based upon these discussions and our review of the Company's operating
results, it is clear to us that the existing restaurant operations cannot
produce a satisfactory result to the shareholders - and there are no meaningful
prospects for improvement. It is apparent that the public market has recognized
these same realities by according the Company a very dismal stock price. We
strongly believe that if a public company cannot enhance shareholder value as an
ongoing concern, its Board of Directors is obligated to pursue appropriate "exit
strategy" alternatives.
We are prepared to discuss with you just such a strategic alternative
to enhance shareholder value - the acquisition of the Company by NBO or its
affiliates. We believe that we could conclude an acquisition of the entire
Company at a price per share substantially in excess of current trading prices.
<PAGE>
Quality Dining Board of Directors
October 1, 1999
Page 2
We are hereby formally requesting that you meet with us with a view
toward exploring this alternative for the benefit of all shareholders.
Although we do not regard our interest in Quality Dining as anything
other than "friendly", in view of the importance of these strategic issues, we
reserve our right to make an acquisition proposal directly to Quality Dining's
shareholders, initiate shareholder proposals in favor of a sale or other
disposition of the Company or its assets and/or nominate a slate of directors
who would pursue such alternatives.
We hope that you will grant us a meeting and give due consideration
to any proposals we might advance. It bears reiteration that we wish to work
with you in developing a plan that will benefit all shareholders and that such a
result can best be achieved through mutual cooperation and the exchange of
ideas. We look forward to hearing from you at your earliest convenience.
Very truly yours,
/s/ David W. Schostak
David W. Schostak
DWS:bjh
CC: Christopher J. Murphy III
Daniel B. Fitzpatrick
Ezra H. Friedlander
Arthur J. Decio
James K. Fitzpatrick
Steven M. Lewis
