<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES 13d-1(b),
(c) AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(b)
(Amendment No. 3)*
7th Level, Inc.
-----------------------------------------
(Name of Issuer)
Common Stock
-----------------------------------------
(Title of Class of Securities)
817916-10-9
-----------------------------------------
(CUSIP Number)
*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 the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("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).
Page 1 of 9 pages
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CUSIP NO. 817916-10-9 SCHEDULE 13G PAGE 2 OF 9 PAGES
--------------------- ----- -----
(1) NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Entec Associates, a California general partnership
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ X ]
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(3) SEC USE ONLY
---------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Entec Associates, a California general partnership
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(5) SOLE VOTING POWER
NUMBER OF 0
SHARES --------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
OWNED BY 0
EACH --------------------------------------------------------
REPORTING (7) SOLE DISPOSITIVE POWER
PERSON WITH 262,148**
--------------------------------------------------------
(8) SHARED DISPOSITIVE POWER
0
--------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
262,148**
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(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES*
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(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
1.1%**
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(12) TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
**As of December 31, 1998.
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CUSIP NO. 817916-10-9 SCHEDULE 13G PAGE 3 OF 9 PAGES
--------------------- ----- -----
(1) NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Michael R. Milken
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ X ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
USA
---------------------------------------------------------------------
(5) SOLE VOTING POWER
NUMBER OF 0
SHARES --------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
OWNED BY 0
EACH --------------------------------------------------------
REPORTING (7) SOLE DISPOSITIVE POWER
PERSON WITH 262,148**
--------------------------------------------------------
(8) SHARED DISPOSITIVE POWER
0
--------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
262,148**
---------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES*
---------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
1.1%**
---------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON*
IN
---------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
**As of December 31, 1998.
<PAGE> 4
CUSIP NO. 817916-10-9 SCHEDULE 13G PAGE 4 OF 9 PAGES
--------------------- ----- -----
(1) NAME OF REPORTING PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Lori A. Milken
---------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ X ]
---------------------------------------------------------------------
(3) SEC USE ONLY
---------------------------------------------------------------------
(4) CITIZENSHIP OR PLACE OF ORGANIZATION
USA
---------------------------------------------------------------------
(5) SOLE VOTING POWER
NUMBER OF 0
SHARES --------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
OWNED BY 0
EACH --------------------------------------------------------
REPORTING (7) SOLE DISPOSITIVE POWER
PERSON WITH 262,148**
--------------------------------------------------------
(8) SHARED DISPOSITIVE POWER
0
--------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
262,148**
---------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES*
---------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
1.1%**
---------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON*
IN
---------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
**As of December 31, 1998.
<PAGE> 5
ITEM 1.
(a) Name of Issuer: 7th Level, Inc.
(b) Address of Issuer's Principal Executive Offices:
1201 Richardson Drive
Suite 277
Richardson, Texas 75080
ITEM 2.
(a) Name of Person Filing: Entec Associates and the general
partners of Entec Associates who are Michael R. Milken and
Lori A. Milken.
(b) Address of Principal Business Office or, if None,
Residence: 844 Moraga Drive
Los Angeles, California 90049
(c) Citizenship: Entec Associates, a California general
partnership. Michael R. Milken: United States citizen.
Lori A. Milken: United States citizen
(d) Title of Class of Securities: 7th Level, Inc. Common Stock,
$.01 par value per share
(e) CUSIP Number: 817916-10-9
ITEM 3. Not Applicable
ITEM 4. Ownership
(a) Amount Beneficially Owned: 262,148*
(b) Percent of Class: 1.1%*
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 0
(iii) sole power to dispose or to direct the disposition
of: 262,148*
(iv) shared power to dispose or to direct the disposition
of: 0
* As of December 31, 1998.
PAGE 5 OF 9 PAGES
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ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of
more than five percent of the class of securities, check the following
[X].
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON
Not Applicable
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY
Not Applicable
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP
Not Applicable
ITEM 9. NOTICE OF DISSOLUTION OF GROUP
Not Applicable
ITEM 10. CERTIFICATIONS
Not Applicable
PAGE 6 OF 9 PAGES
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: February 10, 1999
ENTEC ASSOCIATES:
/s/ Michael R. Milken
--------------------------------
By: Michael R. Milken,
General Partner
/s/ Michael R. Milken
--------------------------------
Michael R. Milken
/s/ Lori A. Milken
--------------------------------
Lori A. Milken
PAGE 7 OF 9 PAGES
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EXHIBIT INDEX
Exhibit Document Page
- ------- -------- ----
1 Joint Filing Agreement 9
PAGE 8 OF 9 PAGES
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EXHIBIT 1
JOINT FILING AGREEMENT
Pursuant to Rule 13d-1(k)(1)(iii), we the undersigned agree that this
Schedule 13G, to which this Joint Filing Agreement is attached as Exhibit 1, is
filed on behalf of each of us.
Date: February 10, 1999
ENTEC ASSOCIATES:
/s/ Michael R. Milken
--------------------------------
By: Michael R. Milken,
General Partner
/s/ Michael R. Milken
--------------------------------
Michael R. Milken
/s/ Lori A. Milken
--------------------------------
Lori A. Milken
PAGE 9 OF 9 PAGES
