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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 6)
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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) 262-1000
(Name, address and telephone number of person authorized
to receive notices and communications)
April 6, 2000
(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 9 pages)
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<S> <C> <C> <C> <C> <C>
CUSIP No. 747456P 10 5 13D Page 2 of 9 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: 1,200,000
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,200,000
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------- -------------------------------------------------------------------------------------------------------
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): 9.8%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ---------------------- -------------------------------------------------------------------------------------------------------
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CUSIP No. 747456P 10 5 13D Page 3 of 9 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): 9.8%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
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CUSIP No. 747456P 10 5 13D Page 4 of 9 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): 9.8%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
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CUSIP No. 747456P 10 5 13D Page 5 of 9 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): 9.8%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
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CUSIP No. 747456P 10 5 13D Page 6 of 9 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): 9.8%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
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This Amendment No. 6 ("Amendment No. 6") amends the
Statement on Schedule 13D filed on March 26, 1999, as amended by Amendment No. 1
filed on October 5, 1999, Amendment No. 2 filed on January 13, 2000, Amendment
No. 3 filed on February 22, 2000, Amendment No. 4 filed on February 24, 2000 and
Amendment No. 5 filed on February 28, 2000 (the "Schedule 13D") 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.
On March 13, 2000, the Company's Board of Directors
announced that it had rejected NBO's cash merger proposal to acquire all of the
outstanding common stock of Quality Dining at $5.00 per share.
On April 4, 2000 the Company announced that its Board of
Directors authorized Daniel B. Fitzpatrick, Chairman, President and Chief
Executive Officer and his affiliates or associates to purchase up to 1,000,000
additional shares of the Company's Common Stock without triggering the Company's
"poison pill" shareholder rights plan. The Company further announced that
members of management would time their purchases so as not to compete with the
Company's purchases under its share repurchase program.
By letter dated April 6, 2000 (the "April 6 Letter"), David
W. Schostak, on behalf of NBO, wrote the Quality Dining Board criticizing its
actions as "at odds" with shareholders' interests and urged the Board to
"reconsider its actions and waive the pill for all or none." The April 6 Letter
is filed as Exhibit 8 hereto and is incorporated herein by reference.
NBO plans to consider the entire range of actions available
to it, including but not limited to litigation, to prevent what it believes to
be a blatant effort by the Company's management to solidify its control over the
Company at the shareholders' expense, without paying a control premium.
Except as indicated above, the information set forth in
Item 4 of the Schedule 13D remains unchanged.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
The following Exhibits are filed herewith:
8. Letter, dated April 6, 2000, from NBO to Quality
Dining Board of Directors.
7
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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: April 7, 2000
NBO, LLC
By: /s/ David W. Schostak
-----------------------------
David W. Schostak, Member
/s/ Jerome L. Schostak
--------------------------------
Jerome L. Schostak
/s/ David W. Schostak
--------------------------------
David W. Schostak
/s/ Robert I. Schostak
--------------------------------
Robert I. Schostak
/s/ Mark S. Schostak
--------------------------------
Mark S. Schostak
8
<PAGE>
EXHIBIT INDEX
Exhibit No. DESCRIPTION
----------- -----------
8. Letter, dated April 6, 2000, from NBO to Quality
Dining Board of Directors
9
EXHIBIT 8
NBO, LLC
25800 NORTHWESTERN HIGHWAY
SUITE 750
SOUTHFIELD, MICHIGAN 48075
TEL. (248) 262-1000 FAX (248) 357-6116
April 6, 2000
BY FACSIMILE AND FEDERAL EXPRESS
- --------------------------------
Board of Directors Quality Dining, Inc.
4220 Edison Lakes Parkway
Mishawaka, Indiana 46545
Dear Directors:
Quality Dining announced on April 4, 2000 that its Board of
Directors authorized Daniel Fitzpatrick and other members of management to
purchase up to 1,000,000 additional shares of Quality Dining common stock, and
that their purchases will be timed so as not to compete with purchases by the
Company under its share repurchase program. Put simply, you impeded our ability
to pay Quality Dining shareholders a substantial premium for their stock. You
are now establishing a mechanism that allows Dan Fitzpatrick to acquire those
shares while paying no premium at all! How can you take such an action? YOU ARE
SERVING THE INTERESTS OF YOUR FRIENDS WHILE ACTING AT ODDS WITH THOSE OF QUALITY
DINING'S SHAREHOLDERS.
You have previously instituted a "poison pill" shareholder
rights plan to, in effect, prohibit any person or group from acquiring 15% or
more of the outstanding shares. As you know from our shareholder proposal at the
last annual meeting, we wish to see the poison pill terminated so that it would
not serve as an impediment to enhancement of shareholder value through an
acquisition of the Company. We see your waiver of its application solely to Dan
Fitzpatrick, his affiliates, associates or management, however, as worse, much
worse, than its mere existence.
With no poison pill or the waiver of its application to the
highest bidder in an auction of the Company, we or other interested acquirors
could bid to buy the Company from its shareholders and, in all likelihood, would
be required to pay a control premium (i.e., a price substantially in excess of
<PAGE>
current market prices) to acquire a controlling interest. As you know, we had
offered to acquire the Company for $5 per share in cash (which represented a
122% premium over the market price prior to the making of that proposal). Your
decision to permit Dan Fitzpatrick and other insiders to buy an additional
1,000,000 shares will allow them to solidify their control over the Company
without paying any control premium. The Company's purchase of shares from other
shareholders through its buyback program compounds the problem by further
increasing management's percentage ownership.
We believe that, by denying the right of shareholders to
receive a control premium, you are violating your fiduciary duties to Quality
Dining's shareholders and should be held accountable for the loss of value that
results, including any lost control premium that shareholders would have
otherwise received.
If your goal in permitting additional management purchases
and in instituting the share buyback program was to support the market price of
the stock, we believe you should allow NBO and all other parties to be free of
the poison pill's restrictions. It is simply inconceivable to us that you would
waive the pill for insiders, but not for us or any others who might buy shares
at a premium to current market prices. If you lift the pill for us and approve
our future purchases for purposes of the applicable Indiana antitakeover
statutes, it would be our intention to purchase additional shares.
WE URGE THE BOARD TO RECONSIDER ITS ACTIONS AND WAIVE THE
PILL FOR ALL OR NONE. This action would create a level playing field and invite
value-enhancing share purchases from a broader field of investors, while
transferring any control premium from insiders to the shareholders - where it
belongs. If you proceed with your present course of action, we will be forced to
consider all alternatives, including litigation, to stop what we see as a
blatant effort to solidify management's control at the shareholders' expense.
As a secondary concern, we do not see how the conflicts of
interest inherent in coordinating the timing of purchases between the Company
and the management group could be satisfactorily resolved. Are any other
shareholders being given information about the Company's acquisition program to
enhance their buying efforts? Nor have we seen any Schedule 13D filed by members
of management with respect to their actions as a group with regard to their
coordinated purchases. We intend to review the fiduciary duty and securities law
issues involved and, again, will consider all alternatives to hold any and all
parties accountable for any violations that result from this course of action.
As we have indicated in the past, we advocate a sale of the
Company to the highest bidder through an auction process. We believe that this
is the only way in which the shareholders would receive a meaningful premium
over the current trading prices for their shares in the foreseeable future. We
hope the Board will not deny shareholders this opportunity by proceeding with
the action described above.
<PAGE>
Please communicate your response to us as soon as possible.
Very truly yours,
/s/ David W. Schostak
David W. Schostak
cc: Philip J. Faccenda
Daniel B. Fitzpatrick
James K. Fitzpatrick
Ezra H. Friedlander
Steven M. Lewis
Christopher J. Murphy III
Bruce M. Jacobson
