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FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 ---------------------------
OMB APPROVAL
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OMB Number: 3235-0104
Expires: September 30, 1998
Estimated average burden
hours per response..... 0.5
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INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935
or Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
1. Name and Address of Reporting Person*
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(Last) (First) (Middle)
Schwinn Holdings Corporation
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(Street)
c/o Questor Management Company
4000 Town Center, Suite 530
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(City) (State) (Zip)
Southfield MI 48075
2. Date of Event Requiring Statement (Month/Day/Year) June 22, 1998
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3. IRS or Social Security Number of Reporting Person (Voluntary) 52-2055603
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4. Issuer Name and Ticker or Trading Symbol GT Bicycles, Inc. (GTBX)
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5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
Director X 10% Owner
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Officer (give title below) Other (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint/Group Filing (Check Applicable Line)
X Form filed by One Reporting Person
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Form filed by More than One Reporting Person
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TABLE I -- Non-Derivative Securities Beneficially Owned
<TABLE>
<CAPTION>
1. Title of Security (Instr. 4) 2. Amount of Securities 3. Ownership Form: 4. Nature of Indirect
Beneficially Owned Direct (D) or Beneficial Ownership
(Instr. 4) Indirect (I) (Instr. 5)
(Instr. 5)
<S> <C> <C> <C>
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Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
</TABLE>
(Over)
SEC 1473 (7-96)
<PAGE> 2
FORM 3 (continued)
TABLE II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
1. Title of Derivative 2. Date Exercisable and 3. Title and Amount of 4. Conversion or 5. Ownership Form 6. Nature of
Security (Instr. 4) Expiration Date Securities Under- Exercise Price of Derivative Indirect
(Month/Day/Year) lying Derivative of Derivative Security: Beneficial
----------------------- Security (Instr. 4) Security Direct (D) or Ownership
Date Expiration ---------------------- Indirect (I) (Instr. 5)
Exercisable Date Title Amount of (Instr. 5)
Number of
Shares
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<S> <C> <C> <C> <C> <C> <C> <C>
Option (1) (1) Common Stock (1) $8.00 p/s D
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</TABLE>
Explanation of Responses:
(1) On June 22, 1998, Reporting Person entered into an Agreement and Plan of
Merger (the "Merger Agreement") with GT Bicycles, Inc. ("GT") providing for
the acquisition of GT by Reporting Person (the "Merger"). In connection with
that Agreement, certain institutional stockholders of GT (the
"Stockholders") granted Reporting Person an option to purchase their
2,230,081 shares of GT Common Stock (the "Option").
The Option will not become exercisable unless and until certain specified
events ("Purchase Events") occur, including: (i) commencement of a third party
tender offer, or the filing of a registration statement for an exchange offer,
the consummation of which would result in a third party having beneficial
ownership of 50% or more of the outstanding GT Common Stock, (ii) GT or its
Board of Directors (including any committee of the Board) shall have taken, or
evidenced the intention of taking, certain specified actions to recommend or
approve an acquisition proposal from a person other than Reporting Person, or
the Board shall have withdrawn its recommendation of the Merger, (iii) any
person (other than Reporting Person and the Stockholders) shall have acquired,
or shall have acquired the right to acquire, beneficial ownership of 50% or more
of the outstanding GT Common Stock or (iv) with respect to a particular
Stockholder, such Stockholder shall have materially breached its obligations
under the Option Agreement.
The Option terminates on the earliest to occur of: (w) the effective time
of the Merger, (x) the termination of the Merger Agreement by mutual consent,
(y) the entry of a nonappealable court order restraining, enjoining or
prohibiting the Merger, and (z) six months following termination of the Merger
Agreement for any other reason.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If
space is insufficient, See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
/s/ Robert E. Shields June 30, 1998
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Robert E. Shields Date
**Signature of Reporting Person
