<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 3)*
KRUG INTERNATIONAL CORP.
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(Name of Issuer)
Common Stock, No Par Value
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(Title of Class of Securities)
501067102
----------------------------------------
(CUSIP Number)
Ronald J. Vannuki
100 Wilshire Blvd., 15th Floor
Santa Monica, CA 90401
(310) 917-6600
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
March 6, 1997
----------------------------------------
(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 which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box / /.
Check the following box if a fee is being paid with the statement / /. (A fee
is not required only if the reporting person: (1) has a previous statement on
file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
NOTE: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) 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 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).
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CUSIP No. 501067102 Page 2 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Fortuna Advisors, Inc.
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
N/A
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
California
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 0
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 129,280
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
129,280
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
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(13) Percent of Class Represented by Amount in Row (11)
2.5%
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(14) Type of Reporting Person*
CO
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CUSIP No. 501067102 Page 3 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Karen B. Brenner
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
PF (with respect to shares over which Ms. Brenner has sole
dispositive power);
N/A (with respect to all other shares in which Ms. Brenner has a
beneficial interest.)
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
USA
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Number of Shares (7) Sole Voting
Beneficially Owned Power 5,620
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 0
--------------------------------------------------
(9) Sole Dispositive
Power 5,620
--------------------------------------------------
(10) Shared Dispositive
Power 129,280
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
134,900
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
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(13) Percent of Class Represented by Amount in Row (11)
2.6%
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(14) Type of Reporting Person*
IN
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CUSIP No. 501067102 Page 4 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
CareVest Capital, LLC
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
WC
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
Georgia
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 62,800
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 62,800
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
62,800
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
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(13) Percent of Class Represented by Amount in Row (11)
1.2%
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(14) Type of Reporting Person*
OO
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CUSIP No. 501067102 Page 5 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Robert M. Thornton, Jr.
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
PF (with respect to shares over which Mr. Thornton, Jr. has sole
voting and dispositive power);
N/A (with respect to all other shares in which Mr. Thornton, Jr. has
a beneficial interest.)
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
USA
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Number of Shares (7) Sole Voting
Beneficially Owned Power 5,000
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 62,800
--------------------------------------------------
(9) Sole Dispositive
Power 5,000
--------------------------------------------------
(10) Shared Dispositive
Power 62,800
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
67,800
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
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(13) Percent of Class Represented by Amount in Row (11)
1.3%
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(14) Type of Reporting Person*
IN
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<PAGE>
CUSIP No. 501067102 Page 6 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Fortuna Acquisition Partners, L.P.
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
WC
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
California
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 1,836,896
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 1,527,244
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,836,896
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
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(13) Percent of Class Represented by Amount in Row (11)
33.7%
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(14) Type of Reporting Person*
PN
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CUSIP No. 501067102 Page 7 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
FC Partners, L.P.
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
N/A
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
California
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 1,836,896
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 1,527,244
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,836,896
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
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(13) Percent of Class Represented by Amount in Row (11)
33.7%
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(14) Type of Reporting Person*
PN
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CUSIP No. 501067102 Page 8 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Fortuna Acquisition Corp.
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
N/A
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
Delaware
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 1,836,896
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 1,527,244
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
1,836,896
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
- -------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
33.7%
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(14) Type of Reporting Person*
CO
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<PAGE>
CUSIP No. 501067102 Page 9 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Strome HedgeCap, Limited
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
WC
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
Cayman Islands
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 0
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 16,063
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
16,063
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
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(13) Percent of Class Represented by Amount in Row (11)
0.3%
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(14) Type of Reporting Person*
CO
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<PAGE>
CUSIP No. 501067102 Page 10 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Strome Susskind Investment Management, L.P.
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
N/A
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
Delaware
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 0
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 309,652
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
309,652
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
- -------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
6.0%
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(14) Type of Reporting Person*
PN
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CUSIP No. 501067102 Page 11 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
SSCO, Inc.
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
N/A
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
Delaware
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 0
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 309,652
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
309,652
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
- -------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
6.0%
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(14) Type of Reporting Person*
CO
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CUSIP No. 501067102 Page 12 of 25 Pages
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(1) Names of Reporting Persons. S.S. or I.R.S. Identification Nos. of Above
Persons
Mark E. Strome
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(2) Check the Appropriate Box if a Member (a) /x/
of a Group (b) / /
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(3) SEC Use Only
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(4) Source of Funds*
N/A
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(5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
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(6) Citizenship or Place of Organization
USA
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Number of Shares (7) Sole Voting
Beneficially Owned Power 0
by Each Reporting --------------------------------------------------
Person With (8) Shared Voting
Power 0
--------------------------------------------------
(9) Sole Dispositive
Power 0
--------------------------------------------------
(10) Shared Dispositive
Power 309,652
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(11) Aggregate Amount Beneficially Owned by Each Reporting Person
309,652
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(12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares* / /
- -------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
6.0%
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(14) Type of Reporting Person*
IN
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<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 13 of 25 Pages
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Item 1. SECURITY AND ISSUER.
This filing relates to the Common Stock, without par value (the
"Stock"), of KRUG International Corp. (the "Company"). The Stock trades on
the American Stock Exchange. The Company's principal executive offices are
located at 1290 Hercules Drive, Suite 120, Houston, Texas 77058; the
Company's telephone number at that location is (281) 212-1233. The number of
issued and outstanding shares of Stock as set forth in the Company's 10Q for
the period ended June 30, 1996 is 5,151,206.
Item 2. IDENTITY AND BACKGROUND.
(a) This statement is filed by (i) Fortuna Advisors, Inc.
("Fortuna Advisors") as discretionary investment adviser with respect to
shares of Stock held or beneficially owned by its advisory clients; (ii)
Karen B. Brenner with respect to shares of Stock held or beneficially owned
by her and as sole shareholder and president of Fortuna Advisors; (iii)
CareVest Capital, LLC ("CareVest") with respect to shares of Stock held or
beneficially owned by the company; (iv) Robert M. Thornton, Jr. with respect
to shares of Stock held or beneficially owned by him and as controlling
member of CareVest; (v) Fortuna Acquisition Partners, L.P. ("Fortuna
Acquisition Partners") with respect to shares of Stock held or beneficially
owned by the partnership; (vi) FC Partners, L.P. ("FC Partners") as general
partner of Fortuna Acquisition Partners; (vii) Fortuna Acquisition Corp. as
general partner of FC Partners; (viii) Strome HedgeCap, Limited ("HedgeCap
Ltd.") with respect to shares of Stock held or beneficially owned by the
corporation; (ix) Strome Susskind Investment Management, L.P. ("SSIM") as
general partner and discretionary investment adviser of SS HedgeCap (defined
below), and as discretionary investment adviser of HedgeCap Ltd.; (x) SSCO,
Inc. as general partner of SSIM; and (xi) Mark E. Strome as a Settlor and
Trustee of the Mark E. Strome Living Trust, dated 1/15/97, the controlling
shareholder of SSCO, Inc., to amend the holdings previously reported by such
persons due to recent transactions. The foregoing persons hereinafter
sometimes are referred to collectively as the "Reporting Persons." The
holdings of the other members of the group (i) Fortuna Investment Partners,
L.P., a California limited partnership ("Fortuna Investment Partners") with
respect to shares of Stock held or beneficially owned by the partnership;
(ii) Fortuna Capital Management, Inc. ("Fortuna Capital Management") as
general partner and discretionary investment adviser of Fortuna Investment
Partners; (iii) Ronald J. Vannuki as sole shareholder and president of
Fortuna Capital Management; (iv) Richard Fechtor with respect to shares of
Stock held or beneficially owned by him; and (v) Strome-Susskind HedgeCap
Fund, L.P. ("SS HedgeCap") with respect to shares of Stock held or
beneficially owned by the partnership, have not changed from the amounts
contained in the group's last Schedule 13D filed with the Securities and
Exchange Commission on November 27, 1996, and, consequently, those persons
are not Reporting Persons in this filing. (All of the persons above,
collectively, the "Group".)
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 14 of 25 Pages
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(b) The principal business address of (i) Fortuna Investment
Partners; (ii) Fortuna Capital Management; (iii) Ronald J. Vannuki; (iv) Fortuna
Acquisition Partners; (v) FC Partners; (vi) Fortuna Acquisition Corp.; (vii) SS
HedgeCap; (viii) SSIM; (ix) SSCO, Inc.; and (xi) Mark E. Strome is 100 Wilshire
Boulevard, Fifteenth Floor, Santa Monica, California 90401. The principal
business address of HedgeCap Ltd. is c/o Fund Services (Cayman Islands) Ltd.,
Grand Cayman, Cayman Islands. The principal business address of (i) Fortuna
Advisors and (ii) Karen B. Brenner is 1300 Bristol Street North, Suite 230,
Newport Beach, California 92660. The principal business address of Richard
Fechtor is 155 Federal Street, Boston, Massachusetts 02110. The principal
business address of (i) CareVest and (ii) Robert M. Thornton, Jr. is 1090
Northchase Parkway, Suite 200 South, Marietta, Georgia 30067-6402.
(c) The business of (i) Fortuna Investment Partners is that of a
private investment partnership engaging in the purchase and sale of securities
for investment for its own account; (ii) Fortuna Capital Management is to serve
as the general partner of Fortuna Investment Partners; and (iii) Ronald J.
Vannuki is to serve as president of Fortuna Capital Management and as a
registered representative with Strome Susskind Securities, L.P., a securities
brokerage firm.
The business of Richard Fechtor is a registered representative and
director of Fechtor, Detwiler & Co., a securities brokerage firm.
The business of (i) Fortuna Advisors is the provision of discretionary
investment management services to clients and (ii) Karen B. Brenner is to serve
as president of Fortuna Advisors. Ms. Brenner also serves as a director of
the Company.
The business of (i) CareVest is that of a private investment company
engaging in the purchase and sale of securities for investment for its own
account and to provide management services, and (ii) Robert M. Thornton, Jr. is
to serve as president and CEO of CareVest. Mr. Thornton, Jr. also serves as
president and as a director of the Company.
The business of (i) Fortuna Acquisition Partners is that of a private
investment partnership engaging in the purchase and sale of securities for
investment for its own account; (ii) FC Partners is to serve as the general
partner of Fortuna Acquisition Partners; (iii) Fortuna Acquisition Corp. is to
serve as the general partner of FC Partners.
The business of (i) SS HedgeCap is that of a private investment
partnership concentrating upon countercyclical and non-conventional investments;
(ii) HedgeCap, Ltd. is the provision of countercyclical and non-conventional
investments to offshore,
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 15 of 25 Pages
--------- ---- ----
non-United States, entities and investors; (iii) SSIM is the provision of
discretionary investment management services to institutional clients;
(iv) SSCO, Inc. is to serve as the general partner of SSIM; and (v) Mark E.
Strome is the provision of discretionary investment management services through
SSIM.
(d) None of the Reporting Persons has, during the last five years,
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) None of the Reporting Persons has, during the last five years,
been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, Federal or state securities laws or finding
any violation with respect to such laws.
(f)(i) Fortuna Investment Partners is a California limited
partnership; (ii) Fortuna Capital Management is a California corporation; (iii)
Ronald J. Vannuki is a United States citizen; (iv) Richard Fechtor is a United
States citizen; (v) Fortuna Advisors is a California corporation; (vi) Karen B.
Brenner is a United States citizen; (vii) CareVest is a Georgia limited
liability company; (viii) Robert M. Thornton, Jr. is a United States citizen;
(ix) Fortuna Acquisition Partners is a California limited partnership; (x) FC
Partners is a California limited partnership; (xi) Fortuna Acquisition Corp. is
a Delaware corporation; (xii) SS HedgeCap is a Delaware limited partnership;
(xiii) HedgeCap Ltd. is a Cayman Islands Corporation; (xiv) SSIM is a Delaware
limited partnership; (xv) SSCO is a Delaware corporation; and (xvi) Mark E.
Strome is a United States citizen.
Item 3. SOURCE AND AMOUNT OF FUNDS AND OTHER CONSIDERATION
The net investment cost (including commissions, if any) of the shares
of Stock beneficially owned by Fortuna Investment Partners is $203,642. The
source of funds for this consideration was working capital.
The net investment cost (including commissions if any) of the shares
of Stock beneficially owned by Richard Fechtor is $591,807. The source of funds
for this consideration was personal funds.
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 16 of 25 Pages
--------- ---- ----
The net investment cost (including commissions if any) of the shares
of Stock beneficially owned by Fortuna Advisors is $476,380. The source of
funds for this consideration was client's personal funds.
The net investment cost (including commissions if any) of the shares
of Stock beneficially owned by Karen B. Brenner is $17,192. The source of funds
for this consideration was personal funds.
The net investment cost (including commissions if any) of the shares
of Stock beneficially owned by CareVest is $163,350. The source of funds for
this consideration was working capital.
The net investment cost (including commissions if any) of the shares
of Stock beneficially owned by Robert M. Thornton, Jr. is $20,490. The
source of funds for this consideration was personal funds.
The net investment cost (including commissions if any) of the shares
of Stock beneficially owned by Fortuna Acquisition Partners is $8,898,040.
The source of funds for this consideration was working capital.
The net investment cost (including commissions if any) of the shares
of Stock beneficially owned by SS HedgeCap is $1,349,700. The source of funds
for this consideration was working capital.
The net investment cost (including commissions if any) of the shares
of Stock beneficially owned by HedgeCap Ltd. is $0. The source of funds
for this consideration was working capital.
Item 4. PURPOSE OF THE TRANSACTION
The purpose of the acquisition of the shares by the Group is to
participate in the active management of the Company and to gain
representation on the Company's Board of Directors. Each member of the Group
may make further purchases of shares of Stock from time to time and may
dispose of any or all of the shares of Stock held by it at any time.
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 17 of 25 Pages
--------- ---- ----
Item 5. INTEREST IN SECURITIES OF THE ISSUER
(a) As of the date hereof each member of the Group has the
following interest in the securities of the Issuer:
(i) Fortuna Investment Partners beneficially owns 116,475 shares
of Stock which includes 74,475 warrants to purchase shares of Stock. Fortuna
Investment Partners is the beneficial owner of 2.2% of the Stock.
(ii) Fortuna Capital Management, as general partner and
discretionary investment adviser to Fortuna Investment Partners, beneficially
owns 116,475 shares of Stock, which includes 74,475 warrants to purchase shares
of Stock. Fortuna Capital Management is the beneficial owner of 2.2% of the
Stock.
(iii) Ronald J. Vannuki, as sole shareholder and president of
Fortuna Capital Management, beneficially owns 116,475 shares of Stock, which
includes 74,475 warrants to purchase shares of Stock. Mr. Vannuki is the
beneficial owner of 2.2% of the Stock.
(iv) Richard Fechtor beneficially owns 169,169 shares of Stock.
Mr. Fechtor is the beneficial owner of 3.3% of the Stock.
(v) Fortuna Advisors, as discretionary investment adviser to
clients whose accounts hold the Stock, beneficially owns 129,280 shares of
Stock, which includes 8,550 warrants to purchase shares of Stock. Fortuna
Advisors is the beneficial owner of 2.5% of the Stock.
(vi) Karen B. Brenner, as sole shareholder of Fortuna Advisors
and as a direct owner of shares of Stock, beneficially owns 134,900 shares of
Stock, which includes 8,550 warrants to purchase shares of Stock. Ms. Brenner
is the beneficial owner of 2.6% of the Stock.
(vii) CareVest beneficially owns 62,800 shares of Stock, which
includes 23,000 warrants to purchase shares of Stock. CareVest is the
beneficial owner of 1.2% of the Stock.
(viii) Robert M. Thornton, Jr., as controlling member of
CareVest and as a direct owner of shares of Stock, beneficially owns 67,800
shares of Stock, which includes 23,000 warrants to purchase shares of Stock.
Mr. Thornton, Jr. is the beneficial owner of 1.3% of the Stock.
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 18 of 25 Pages
--------- ---- ----
(ix) Fortuna Acquisition Partners beneficially owns 1,836,896
shares of Stock, which includes 293,589 shares beneficially owned by SS HedgeCap
and 16,063 shares beneficially owned by HedgeCap Ltd. by virtue of a Proxy
Agreement which establishes an irrevocable proxy in favor of Fortuna Acquisition
Corp., subject to certain conditions. This beneficial ownership also includes
232,470 warrants to purchase Stock, and beneficial ownership of 48,189 warrants
held by SS HedgeCap and 16,063 warrants held by HedgeCap Ltd. by virtue of the
above-referenced Proxy Agreement. Fortuna Acquisition Partners is the
beneficial owner of 33.7% of the Stock.
(x) FC Partners, as general partner of Fortuna Acquisition
Partners, beneficially owns 1,836,896 shares of Stock, which includes 296,722
warrants to purchase shares of Stock. FC Partners is the beneficial owner of
33.7% of the Stock.
(xi) Fortuna Acquisition Corp., as general partner of FC
Partners, beneficially owns 1,836,896 shares of Stock, which includes 296,722
warrants to purchase shares of Stock. Fortuna Acquisition Corp is the
beneficial owner of 33.7% of the Stock.
(xii) SS HedgeCap beneficially owns 293,589 shares of Stock,
which includes 48,189 warrants to purchase shares of Stock. SS HedgeCap is the
beneficial owner of 5.6% of the Stock.
(xiii) HedgeCap Ltd. beneficially owns 16,063 shares of the
Stock, which includes 16,063 warrants to purchase shares of the Stock. HedgeCap
Ltd. is the beneficial owner of 0.3% of the Stock.
(xiv) SSIM, (y) as discretionary investment adviser to and
general partner of SS HedgeCap and (z) discretionary investment adviser to
HedgeCap Ltd., beneficially owns 309,652 shares of Stock, which includes 64,252
warrants to purchase shares of Stock. SSIM is the beneficial owner of 6.0% of
the Stock.
(xv) SSCO, Inc., as general partner of SSIM, beneficially owns
309,652 shares of the Stock, which includes 64,252 warrants to purchase shares
of Stock. SSCO, Inc. is the beneficial owner of 6.0% of the Stock.
(xvi) Mark E. Strome, as a Settlor and Trustee of the Mark E.
Strome Living Trust dated 1/15/97, which trust is the controlling shareholder
of SSCO, Inc., beneficially owns 309,652 shares of the Stock, which includes
64,252 warrants to purchase shares of Stock. Mr. Strome is the beneficial
owner of 6.0% of the Stock.
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 19 of 25 Pages
--------- ---- ----
The Group in the aggregate may be deemed to own an
aggregate of 41.8% of the Stock.
(b)
<TABLE>
<CAPTION>
-----------------------------------------------------
Power to Vote Power to Dispose
--------------------------------------------------------------------------------------------------------------
No. of Shares Percentage
Beneficially Owned of Class Sole Shared Sole Shared
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Fortuna Investment
Partners 116,475 2.2% 0 116,475 0 116,475
- --------------------------------------------------------------------------------------------------------------------------------
Fortuna Capital
Management 116,475 2.2% 0 116,475 0 116,475
- --------------------------------------------------------------------------------------------------------------------------------
Ronald J. Vannuki 116,475 2.2% 0 116,475 0 116,475
- --------------------------------------------------------------------------------------------------------------------------------
Richard Fechtor 169,169 3.3% 0 169,169 0 169,169
- --------------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors 129,280 2.5% 0 0 0 129,280
- --------------------------------------------------------------------------------------------------------------------------------
Karen B. Brenner 134,900 2.6% 5,620 0 5,620 129,280
- --------------------------------------------------------------------------------------------------------------------------------
CareVest 62,800 1.2% 0 62,800 0 62,800
- --------------------------------------------------------------------------------------------------------------------------------
Robert M. Thornton, Jr. 67,800 1.3% 5,000 62,800 5,000 62,800
- --------------------------------------------------------------------------------------------------------------------------------
Fortuna Acquisition
Partners 1,836,896 33.7% 0 1,836,896 0 1,527,244
- --------------------------------------------------------------------------------------------------------------------------------
FC Partners 1,836,896 33.7% 0 1,836,896 0 1,527,244
- --------------------------------------------------------------------------------------------------------------------------------
Fortuna Acquisition
Corp. 1,836,896 33.7% 0 1,836,896 0 1,527,244
- --------------------------------------------------------------------------------------------------------------------------------
SS HedgeCap 293,589 5.6% 0 0 0 293,589
- --------------------------------------------------------------------------------------------------------------------------------
HedgeCap Ltd. 16,063 0.3% 0 0 0 16,063
- --------------------------------------------------------------------------------------------------------------------------------
SSIM 309,652 6.0% 0 0 0 309,652
- --------------------------------------------------------------------------------------------------------------------------------
SSCO, Inc. 309,652 6.0% 0 0 0 309,652
- --------------------------------------------------------------------------------------------------------------------------------
Mark E. Strome 309,652 6.0% 0 0 0 309,652
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 20 of 25 Pages
--------- ---- ----
(c) The trading dates, number of shares purchased or sold and
price per share for all transactions by the Reporting Persons since May 20,
1996 are set forth on Schedule A hereto. All such transactions were open
market transactions and were effected on the American Stock Exchange. No
other transactions were effected by the Reporting Persons during such period.
(d) No person other than each respective owner referred to herein of
Stock is known to have the right to receive or the power to direct the receipt
of dividends from or the proceeds of sale of such Stock.
(e) Not applicable.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
Fortuna Acquisition Partners, FC Partners, Fortuna Acquisition Corp.,
SS HedgeCap, HedgeCap Ltd., SSIM, SSCO, Inc., and Mark E. Strome have entered
into a Proxy Agreement, essentially in the form of Exhibit 1 previously filed,
which appointed Fortuna Acquisition Corp., the general partner of the general
partner of Fortuna Acquisition Partners, as irrevocable Proxy for the shares of
Stock owned by SS HedgeCap and HedgeCap Ltd., subject to certain conditions
therein set forth. The agreement also provides for the payment to Fortuna
Acquisition Corp. of a finder's fee equal to 10% of all gains, if any, realized
by the other two parties that are attributable to the Stock and warrants.
Item 7. MATTER TO BE FILED AS EXHIBITS
No new exhibits. Exhibits previously filed by the Reporting Persons
are incorporated herein by this reference.
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 21 of 25 Pages
--------- ---- ----
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
Dated: March 14, 1997
FORTUNA ADVISORS, INC.
By: /s/ KAREN B. BRENNER
------------------------------
Karen B. Brenner, President
/s/ KAREN B. BRENNER
- ------------------------------
Karen B. Brenner
Individual
CAREVEST CAPITAL, LLC.
By: /s/ ROBERT M. THORNTON, JR.
-----------------------------------
Robert M. Thornton, Jr., Manager
/s/ ROBERT M. THORNTON, JR.
- ------------------------------
Robert M. Thornton, Jr.
Individual
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 22 of 25 Pages
--------- ---- ----
FORTUNA ACQUISITION PARTNERS, L.P.
By: FC Partners, L.P.,
its General Partner
By: Fortuna Acquisition Corp.,
its General Partner
By: /s/ RONALD J. VANNUKI
-------------------------------
Ronald J. Vannuki, Chairman and
Chief Executive Officer
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 23 of 25 Pages
--------- ---- ----
FC PARTNERS, L.P.
By: Fortuna Acquisition Corp.,
its General Partner
By: /s/ RONALD J. VANNUKI
-------------------------------
Ronald J. Vannuki, Chairman and
Chief Executive Officer
FORTUNA ACQUISITION CORP.
By: /s/ RONALD J. VANNUKI
-------------------------------
Ronald J. Vannuki, Chairman and
Chief Executive Officer
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 24 of 25 Pages
--------- ---- ----
STROME HEDGECAP, LTD.
By: Strome Susskind Investment
Management, L.P.,
its Investment Manager
By: SSCO, Inc.,
its General Partner
By: /s/ JEFFREY LAMBERT
------------------------------
Jeffrey Lambert, Chief Financial
Officer
STROME SUSSKIND INVESTMENT
MANAGEMENT, L.P.
By: SSCO, Inc.,
its General Partner
By: /s/ JEFFREY LAMBERT
--------------------------------
Jeffrey Lambert, Chief Financial
Officer
<PAGE>
CUSIP No. 501067102 SCHEDULE 13D Page 25 of 25 Pages
--------- ---- ----
SSCO, INC.
By: /s/ JEFFREY LAMBERT
--------------------------------
Jeffrey Lambert, Chief Financial
Officer
/s/ JEFFREY LAMBERT
- ------------------------------
Mark E. Strome
Individual
<PAGE>
SCHEDULE A
Transactions Since January 13, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Broker Effective
Party Date Bought (Sold) Price Per Share Transaction
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HedgeCap Ltd. 02/03/97 (2,000) $5.83 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
HedgeCap Ltd. 02/04/97 (4,000) $5.71 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
HedgeCap Ltd. 02/05/97 (3,000) $5.71 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
HedgeCap Ltd. 02/07/97 (2,000) $5.58 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
HedgeCap Ltd. 02/11/97 (2,000) $5.71 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
HedgeCap Ltd. 03/03/97 (5,000) $4.96 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
HedgeCap Ltd. 03/06/97 (63,800) $4.75 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
CareVest 03/06/97 10,000 $4.75 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
Fortuna Advisors 03/06/97 20,000 $4.75 Bear Stearns
- ---------------------------------------------------------------------------------------------------------
</TABLE>
