================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)
----------
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)
February 24, 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)
================================================================================
#881867/72816.0003
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
<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): 9.6%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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): 9.6%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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): 9.6%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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): 9.6%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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): 9.6%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
This Amendment No. 4 ("Amendment No. 4") 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 and
Amendment No. 3 filed on February 22, 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.
By letter dated February 23, 2000 (the "Firth Letter"),
John C. Firth, Esq., the Company's Executive Vice President and General Counsel,
wrote David W. Schostak, asking that NBO withdraw its solicitation of proxies in
favor of its two nominees (the "NBO Nominees") for election to the Company's
Board of Directors (the "Quality Dining Board") at the 2000 annual meeting of
shareholders. The Firth Letter also indicated that the Quality Dining Board
would not consider the NBO cash merger proposal (as set forth in NBO's February
22 Letter) until after the Company's annual meeting of shareholders on March 7,
2000 and sought evidence of the Reporting Persons' ability to fund the cash
merger proposal.
In response to the Firth Letter, by letter dated February
24, 2000 (the "February 24 Letter"), David W. Schostak indicated that: (i) the
Reporting Persons do not understand why the Quality Dining Board does not
immediately consider the cash merger proposal; (ii) the Reporting Persons are
highly confident of their ability to finance the cash merger proposal; and (iii)
the Reporting Persons are prepared to withdraw their solicitation of proxies in
favor of the NBO Nominees "if the Company were to commit unconditionally to a
sale of the Company to the highest bidder in an auction provided that the price
is at $5.00 or more per share."
The Firth Letter and the February 24 Letter are filed as
Exhibits 5 and 6 hereto, respectively, are incorporated herein by reference.
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:
5. Letter, dated February 23, 2000, from John C. Firth,
Esq. to David W. Schostak.
6. Letter, dated February 24, 2000, from NBO to John C.
Firth, Esq.
7
<PAGE>
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: February 24, 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
- ----------- -----------
5. Letter, dated February 23, 2000, from John C. Firth,
Esq. to David W. Schostak.
6. Letter, dated February 24, 2000, from NBO to John
C. Firth, Esq.
9
EXHIBIT 5
[QUALITY DINING LOGO] Writer's Direct Dial: (219) 243-6616
Writer's Direct Fax: (219) 243-4377
February 23, 2000
Mr. David W. Schostak
NBO, LLC
25800 Northwestern Highway
Suite 750
Southfield, Michigan 48075
Dear Mr. Schostak:
I am in receipt of your letter dated February 22, 2000 to
Daniel B. Fitzpatrick in which NBO proposes a "friendly" cash merger transaction
of the Company with an entity to be formed by NBO. As you are undoubtedly aware,
NBO has communicated its proposal to the Company only 14 days prior to the
Company's annual meeting. The offer is also subject to the receipt of financing
sufficient to fund the proposed acquisition (although no details about such
financing are set forth in your letter) as well as a full due diligence
investigation.
The Board of Directors has determined that the Board to be
elected at the March 7, 2000 annual meeting will, in accordance with its
fiduciary duties, evaluate the fairness of the offer in the context of the
Company's long-term strategy, as well as NBO's ability to finance and complete
the transaction. In view of the timing of this offer in the context of a proxy
fight initiated by NBO, the Board requests further evidence of NBO's ability to
fund the proposed acquisition.
In the meantime, in light of NBO's bid, we ask NBO to
withdraw its solicitation of proxies for NBO's nominees for Director. Given
NBO's recent proposal and the conflicts inherent now that NBO is a bidder for
the Company, we believe it would be highly improper for NBO's nominees to sit on
the Board of Directors.
Please communicate your response to us as soon as possible.
Yours very truly,
/s/ John C. Firth
John C. Firth
Executive Vice President and
General Counsel
JCF/jc
P.O. Box 416 o South Bend, Indiana 46624
219-271-4600 o Fax:o 219-271-6904 o VOICE MAIL: 219-243-6820
EXHIBIT 6
NBO, LLC
25800 NORTHWESTERN HIGHWAY
SUITE 750
SOUTHFIELD, MICHIGAN 48075
TEL. (248) 262-1000 FAX (248) 357-6116
February 24, 2000
BY FACSIMILE AND FEDERAL EXPRESS
- --------------------------------
John C. Firth, Esq.
Executive Vice President and General Counsel
Quality Dining, Inc.
4220 Edison Lakes Parkway
Mishawaka, Indiana 46545
Dear Mr. Firth:
Thank you for your letter of February 23, 2000 indicating
the determination of the Board of Directors to evaluate, at an unspecified date
after March 7, 2000, the fairness of our offer to acquire all of the outstanding
shares of Quality Dining, Inc. Common Stock in a cash merger at a price of $5.00
per share (the "Acquisition"). We have made a serious proposal and do not
understand why the Board does not consider it now; we would expect that the
Board, in fulfilling its fiduciary duties to the shareholders, would give
immediate consideration to our offer.
As we indicated in our letter of February 22, 2000, we
would be happy to discuss our plans for financing our cash merger offer. To
reiterate our position, we are highly confident we can obtain all necessary
financing. In this regard, please be advised that the net worth of NBO's
affiliates substantially exceeds the funds necessary to consummate the
Acquisition. Although we would expect to finance the Acquisition in a
traditional manner, you should hardly have concerns about our financial
wherewithal.
With respect to your request that NBO withdraw its
solicitation of proxies in favor of the NBO Nominees, we would be prepared to
withdraw our solicitation if the Board were to commit unconditionally to a sale
of the Company to the highest bidder in an auction provided that the price is at
$5.00 or more per share. We look forward to your response.
Very truly yours,
/s/ David W. Schostak
David W. Schostak
cc: Daniel B. Fitzpatrick
Philip J. Faccenda
Arthur J. Decio
James K. Fitzpatrick
Ezra H. Friedlander
Steven M. Lewis
Christopher J. Murphy III
Bruce M. Jacobson
