================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
------------------------------
ESG RE LIMITED
(Name of Issuer)
COMMON STOCK, $1.00 PAR VALUE PER SHARE 000G312151
(Title of class of securities) (CUSIP number)
NEIL H. KOFFLER
SC FUNDAMENTAL LLC
10 EAST 50TH STREET, 21ST FLOOR
NEW YORK, NY 10022
(212) 888-9100
(Name, address and telephone number of person authorized
to receive notices and communications)
WITH A COPY TO:
DAVID E. ZELTNER, ESQ.
WEIL, GOTSHAL & MANGES LLP
767 FIFTH AVENUE
NEW YORK, NEW YORK 10153-0119
(212) 310-8000
NOVEMBER 16, 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-(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. Seess. 240.13d-7 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
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purposes of Section 18 of the Securities Exchange Act of
1934 (the "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.)
(Continued on following pages)
(Page 1 of 17 Pages)
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NY2:\984557\01\74168.0011
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 2 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON SC FUNDAMENTAL VALUE FUND, L.P.
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/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: Delaware
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 306,180
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 306,180
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
306,180
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 2.60%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 3 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON SC FUNDAMENTAL 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: 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: New York
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 306,180*
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 306,180*
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
306,180*
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 2.60%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
---------------------- -------------------------------------------------------------------------------------------------------
*Does not include (i) 116,500 shares beneficially owned by Gary Siegler and (ii)
87,500 shares over which Paul J. Isaac has sole or shared dispositive power. Mr.
Siegler has a nonvoting interest in SC Fundamental LLC and Mr. Isaac is a
consultant to SC Fundamental LLC. SC Fundamental LLC disclaims beneficial
ownership of all such shares.
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 4 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON SC FUNDAMENTAL VALUE BVI, LTD.
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: 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: British Virgin Islands
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 498,920
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 498,920
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
498,920
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.23%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 5 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON SC-BVI PARTNERS
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: 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: Delaware
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 498,920
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 498,920
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
498,920
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.23%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 6 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON PMC-BVI, INC.
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: 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: Delaware
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 498,920
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 498,920
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
498,920
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.23%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 7 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON SC FUNDAMENTAL VALUE BVI, INC.
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: 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: Delaware
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 498,920
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 498,920
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
498,920
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 4.23%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 8 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON PETER M. COLLERY
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: OO/PF
---------------------- -------------------------------------------------------------------------------------------------------
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: 20,000*
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 825,100
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 20,000*
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 825,100
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
845,100**
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 7.17%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
---------------------- -------------------------------------------------------------------------------------------------------
*All of such shares are held by Mr. Collery as custodian for his children in the
following amounts: (i) Claire Adams Collery: 6,667 shares; (ii) Edward Arnold
Collery: 6,666 shares; and (iii) Elizabeth Adams Collery: 6,667 shares.
** Of such amount, 20,000 shares are held by Mr. Collery as custodian for his
children as stated immediately above.
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 9 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON NEIL H. KOFFLER
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: OO/PF
---------------------- -------------------------------------------------------------------------------------------------------
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: 805,100
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 805,100
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
805,100
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 6.83%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
----------------------------------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CUSIP No. 000G312151 13D Page 10 of 17 Pages
----------------------------------------------------------- --------------------------------------------------------
---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON SC FUNDAMENTAL LLC EMPLOYEE SAVINGS AND PROFIT
S.S. OR I.R.S. IDENTIFICATION NO. SHARING PLAN
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/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: Delaware
---------------------- -------------------------------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 20,000
SHARES ------------------- -------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY ------------------- -------------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 20,000
REPORTING ------------------- -------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
20,000
---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES:
[ ]
---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.17%
---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: EP
---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
This Amendment No. 2 ("Amendment No. 2") amends the Statement
on Schedule 13D (the "Schedule 13D") filed on August 21, 2000, as amended by
Amendment No. 1 filed on October 13, 2000, by and on behalf of SC Fundamental
Value Fund, L.P. ("Fund"), SC Fundamental LLC ("SCFLLC"), SC Fundamental Value
BVI, LTD., ("BVI Fund"), SC-BVI Partners ("BVI Partners"), PMC-BVI, Inc.
("PMCBVI"), SC Fundamental Value BVI, Inc. ("BVI Inc."), Peter M. Collery
("Collery"), Neil H. Koffler ("Koffler"), and SC Fundamental LLC Employee
Savings and Profit Sharing Plan ("SC Plan") as members of a joint filing group
(collectively, the "Reporting Persons") with respect to their ownership of
common stock, par value $1.00 per share (the "Common Stock"), of ESG Re Limited
(the "Company"). Capitalized terms used herein and not defined herein have the
meanings ascribed thereto in the Schedule 13D, as amended.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Since the filing of Amendment No. 1, Fund has purchased an
aggregate of 2,430 shares of Common Stock for total consideration (including
brokerage commissions) of $7,181 derived from its working capital and margin
indebtedness.
Since the filing of Amendment No. 1, BVI Fund has purchased an
aggregate of 3,970 shares of Common Stock for total consideration (including
brokerage commissions) of $11,731 derived from its working capital and margin
indebtedness.
ITEM 4. PURPOSE OF THE TRANSACTION
The Reporting Persons believe that, in view of the Company's
continuing poor performance, the Board of Directors of the Company should pursue
the sale or orderly liquidation of the Company on an expedited basis.
Accordingly, on November 16, 2000, Collery, on behalf of the Reporting Persons,
sent a letter to each member of the Company's Board of Directors imploring them
to proceed with such a sale or liquidation and setting forth the reasons that
form the basis for the Reporting Person's belief. A copy of the form of letter
sent to each director on November 16 is attached hereto as Exhibit 3 and is
hereby incorporated by reference.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
As of the close of business on November 16, 2000, the
Reporting Persons beneficially owned (or are deemed, solely for purposes of Rule
13d-3, to beneficially own), directly or indirectly, an aggregate of 845,100
shares of Common Stock, representing approximately 7.17% of the Common Stock
outstanding on November 16, 2000 (based on 11,787,108 shares of Common Stock
outstanding as of November 9, 2000 as reported in the Company's Quarterly Report
on Form 10-Q for the fiscal quarter ended September 30, 2000). Each of the
Reporting Persons, by virtue of Rule 13d-3, may be deemed to own beneficially
the number of shares and percentages of Common Stock set forth opposite their
names below.
<TABLE>
<CAPTION>
Shares of
Name Common Stock Percentage
---- ------------ ----------
<S> <C> <C>
The SC Fundamental Value Fund, L.P. 306,180 2.60%
SC Fundamental LLC 306,180 2.60%
The SC Fundamental Value BVI, Ltd. 498,920 4.23%
SC Fundamental Value BVI, Inc. 498,920 4.23%
SC-BVI Partners 498,920 4.23%
11
<PAGE>
PMC-BVI, Inc. 498,920 4.23%
Peter M. Collery 845,100 (1) 7.17%
Neil H. Koffler 805,100 6.83%
SC Fundamental LLC Employee Savings and Profit
Sharing Plan 20,000 .17%
</TABLE>
(1) Includes 20,000 shares of Common Stock held by Collery as custodian for his
children.
Koffler and Collery, by virtue of their status as members of
SCFLLC, the general partner of Fund, may be deemed to share with Fund and SCFLLC
the power to vote or direct the vote and to dispose or to direct the disposition
of shares of Common Stock of which Fund is the direct beneficial owner.
Koffler, by virtue of his status as an executive officer of
BVI Inc., and Collery, by virtue of his status as the sole stockholder and an
executive officer of BVI Inc., the managing general partner of BVI Partners,
which is the investment manager of BVI Fund, may be deemed to share with BVI
Inc., BVI Partners and BVI Fund the power to vote or direct the vote and to
dispose or direct the disposition of shares of Common Stock of which BVI Fund is
the direct beneficial owner.
Collery, by virtue of his status as the sole stockholder,
director and executive officer of PMCBVI, a general partner of BVI Partners,
which is the investment manager of BVI Fund, may be deemed to share with PMCBVI,
BVI Partners and BVI Fund the power to vote or direct the vote and to dispose or
direct the disposition of shares of Common Stock of which BVI Fund is the direct
beneficial owner.
Collery has the sole power to vote or direct the vote and to
dispose or to direct the disposition of 20,000 shares of Common Stock of which
he is the custodian for his children.
Collery, by virtue of his status as the trustee for SC Plan,
may be deemed to share with SC Plan the power to vote or direct the vote and to
dispose or direct the disposition of shares of Common Stock of which SC Plan is
the direct beneficial owner.
Since the filing of Amendment No. 1, the following
transactions in Common Stock were effected by the Reporting Persons on the
NASDAQ Stock Market:
<TABLE>
<CAPTION>
Reporting Person Number of Shares Price Per Commission Per Date
---------------- ----------------- ---------- --------------- ----
Purchased (Sold) Share Share
---------------- ----- -----
<S> <C> <C> <C> <C>
SC Fundamental Value BVI, 3,970 $2.9375 $0.0175 10/16/00
Ltd.
SC Fundamental Value Fund, 2,430 $2.9375 $0.0175 10/16/00
L.P.
</TABLE>
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit 3. Form of Letter, dated November 16, 2000, sent by
Collery to each member of the Board of Directors of
the Company.
[The remainder of this page intentionally left blank.]
12
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of their knowledge
and belief, the undersigned certify that the information set forth in this
Statement is true, complete and correct.
Dated: November 17, 2000
SC FUNDAMENTAL VALUE FUND, L.P.
By: SC Fundamental LLC, as
General Partner
By: /s/ Neil H. Koffler
----------------------------------------------
Neil H. Koffler, Member
SC FUNDAMENTAL LLC
By: /s/ Neil H. Koffler
----------------------------------------------
Neil H. Koffler, Member
SC FUNDAMENTAL VALUE BVI, LTD.
By: SC Fundamental Value BVI, Inc., as
managing general partner of investment
manager
By: /s/ Neil H. Koffler
----------------------------------------------
Neil H. Koffler, Vice President
SC-BVI PARTNERS
By: SC Fundamental Value BVI, Inc., as managing
general partner
By: /s/ Neil H. Koffler
----------------------------------------------
Neil H. Koffler, Vice President
PMC-BVI, INC.
By: /s/ Peter M. Collery
----------------------------------------------
Neil H. Koffler as Attorney-in-Fact for
Peter M. Collery, President (1)
13
<PAGE>
SC FUNDAMENTAL VALUE BVI, INC.
By: /s/ Neil H. Koffler
----------------------------------------------
Neil H. Koffler, Vice President
/s/ Peter M. Collery
----------------------------------------------
Neil H. Koffler as Attorney-in-Fact for
Peter M. Collery (1)
/s/ Neil H. Koffler
----------------------------------------------
Neil H. Koffler
SC FUNDAMENTAL LLC EMPLOYEE
SAVINGS AND PROFIT SHARING PLAN
By: /s/ Peter M. Collery
----------------------------------------------
Neil H. Koffler as Attorney-in-Fact for
Peter M. Collery, Trustee (1)
(1) Executed by Neil H. Koffler as Attorney-in-Fact for Peter M. Collery.
The Power of Attorney for Mr. Collery is attached as Exhibit 2 to the
Schedule 13D.
14
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
3 Form of Letter, dated November 16, 2000,
sent by Collery to each member of the Board
of Directors of the Company.
15
