<PAGE> 1
================================================================================
SCHEDULE 13D - INFORMATION TO BE INCLUDED IN STATEMENTS
FILED PURSUANT TO RULE 13D-1(A) AND AMENDMENTS
THERETO FILED PURSUANT TO RULE 13D-2(A).*
- -----------------
*As amended by Releases No34-15457, dated January 4, 1979, effective February
14, 1979 (as corrected by Release No 34-15457A, dated February 25, 1979) and
No34-14384, dated November 29, 1979, effective January 5, 1980. - Editor.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT No. 4)*
KRUG INTERNATIONAL CORP
- --------------------------------------------------------------------------------
(Name of Issuer)
COMMON STOCK, NO PAR VALUE
- --------------------------------------------------------------------------------
(Title of Class of Securities)
501067102
-----------------
CUSIP Number)
RONALD J.VANNUKI
100 WILSHIRE BLVD., 15TH FLOOR
SANTA MONICA, CA 90401
(310) 917-6600
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
May 29, 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 this 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 period.
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 and
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.)
(Continued on following page(s))
<PAGE> 2
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 2 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
FORTUNA INVESTMENT PARTNERS, L.P.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 74,475
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
74,475
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
74,475
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.48 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
PN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
SCHEDULE 13D PAGE 3 OF 29 PAGES
CUSIP No. 501067102
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
FORTUNA CAPITAL MANAGEMENT, INC..
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 74,475
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
74,475
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
74,475
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.48 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
CO
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 4 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
RONALD J. VANNUKI
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 1,665,971
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
1,665,971
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,665,971
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
33.08 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
IN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 5 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
FORTUNA ADVISORS, INC.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 0
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
114,520
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
114,520
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.27 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
CO
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 6
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
SCHEDULE 13D PAGE 6 OF 29 PAGES
CUSIP No. 501067102
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
KAREN B. BRENNER
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS* PF (with respect to shares over which Ms. Brenner has sole power);
N/A (with respect to all other shares in which Ms. Brenner has a beneficial interest.)
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER SOLE VOTING POWER
OF SHARES 7. 8,620
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 1,591,496
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
8,620
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
1,527,244
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,714,636
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
34.05 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
IN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 7
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 7 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
CAREVEST CAPITAL, LLC
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
GEORGIA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 62,800
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
62,800
- ----------- --------------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
62,800
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.25 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
OO
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 8
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 8 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
ROBERT M. THORNTON, JR.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
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.)
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 5,200
BENEFICIALLY
OWNED BY EACH
REPORTING
PERSON
WITH
- ----------------- -------- -----------------------------------------------------------------------------------------------------
8. SHARED VOTING POWER
62,800
- ----------------- -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
5,200
- ----------------- -------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
62,800
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
68,000
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.35 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
IN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 9
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 9 OF 27 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
FORTUNA ACQUISITION PARTNERS, L.P.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 1,591,496
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
1,527,244
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,591,496
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.61 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
PN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 10
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 10 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
FC PARTNERS, L.P.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 1,591,496
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
1,527,244
- ----------- --------------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,591,496
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.61 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
PN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 11
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 11 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
FORTUNA ACQUISITION CORP.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 1,591,496
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
1,527,244
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,591,496
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.61 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
CO
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 12
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 12 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
STROME - SUSSKIND HEDGECAP FUND, L.P.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 0
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
48,189
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
48,189
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.96 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
PN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 13
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 13 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
STROME HEDGECAP, LIMITED
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
WC
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
CAYMAN ISLANDS
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 0
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
16,063
- ----------- --------------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
16,063
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.32 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
CO
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 14
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 14 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
STROME SUSSKIND INVESTMENT MANAGEMENT, L.P.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 0
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
64,252
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
64,252
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.28 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
PN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 15
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 15 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
SSCO, INC.
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 0
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
SHARED DISPOSITIVE POWER
10. 64,252
- ---------- ---------------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
64,252
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.28 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
CO
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 16
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 16 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
MARK E. STROME
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 0
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 0
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
64,252
- ----------------- -------- -----------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
64,252
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.28 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
IN
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 17
<TABLE>
<S> <C> <C> <C>
- ------------------------------------------ ---------------------------------------- ----------------------------------------
CUSIP No. 501067102 SCHEDULE 13D PAGE 17 OF 29 PAGES
---------
- ------------------------------------------ ---------------------------------------- ----------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
CHARLES LINN HASLAM
- ----------- --------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [X]
(b) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
3. SEC USE ONLY
- ----------- --------------------------------------------------------------------------------------------------------------------
4. SOURCE OF FUNDS*
PF
- ----------- --------------------------------------------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ----------- --------------------------------------------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
USA
- ----------- --------------------------------------------------------------------------------------------------------------------
NUMBER 7. SOLE VOTING POWER
OF SHARES 300
BENEFICIALLY -------- -----------------------------------------------------------------------------------------------------
OWNED BY EACH
REPORTING 8. SHARED VOTING POWER
PERSON 0
WITH -------- -----------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
300
-------- -----------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
0
- ----------- --------------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
300
- ----------- --------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
N/A
- ----------- --------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.0 %
- ----------- --------------------------------------------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14.
OO
- ----------- --------------------------------------------------------------------------------------------------------------------
</TABLE>
* SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 18
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 18 OF 29 PAGES
------------------- -------------------
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 900 Circle 75 Parkway, Suite 1300, Atlanta, Georiga 30339; the Company's
telephone number at that location is (770) 933-7000. The number of issued and
outstanding shares of Stock as of August 13, 1998, as set forth in the Company's
Quarterly Report on Form 1O-Q for the period ended June 30, 1998, is 5,035,430.
Item 2. Identity and Background.
(a) This statement is filed by (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)
Fortuna Advisors, Inc. ("Fortuna Advisors") as discretionary investment adviser
with respect to shares of Stock held or beneficially owned by its advisory
clients; (v) Karen B. Brenner with respect to shares of Stock held or
beneficially owned by her and as sole shareholder and president of Fortuna
Advisors; (vi) CareVest Capital, LLC ("CareVest") with respect to shares of
Stock held or beneficially owned by CareVest; (vii) Robert M. Thornton, Jr. with
respect to shares of Stock held or beneficially owned by him and as controlling
member of CareVest; (viii) Fortuna Acquisition Partners, L.P. ("Fortuna
Acquisition Partners") with respect to shares of Stock held or beneficially
owned by the partnership; (ix) FC Partners, L.P. ("FC Partners") as general
partner of Fortuna Acquisition Partners; (x) Fortuna Acquisition Corp. as
general partner of FC Partners; (xi) Strome-Susskind HedgeCap Fund, L.P. ("SS
HedgeCap") with respect to shares of Stock held or beneficially owned by the
partnership, (xii) Strome HedgeCap, Limited ("HedgeCap Ltd.") with respect to
shares of Stock held or beneficially owned by the corporation; (xiii) Strome
Susskind Investment Management, L.P. ("SSIM") as general partner and
discretionary investment adviser of SS HedgeCap, and as discretionary investment
adviser of HedgeCap Ltd.; (xiv) SSCO, Inc. as general partner of SSIM; and (xv)
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., and (xvi) Charles Linn
Haslam with respect to shares of Stock held or beneficially owned by him, 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." or the "Group".)
Richard Fechtor is no longer a member of the Group.
<PAGE> 19
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 19 OF 29 PAGES
------------------- -------------------
(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 (x) 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 100,
Newport Beach, California 92660. The principal business address of (i) CareVest
and (ii) Robert M. Thornton, Jr. is 900 Circle 75 Parkway, Suite 1300, Atlanta,
Georgia 30339. The principal address of Charles Linn Haslam is 4620 Sedgwick
Street, N.W., Washington, D.C. 20016.
(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 the
general partner of Fortuna Investment Partners; and (iii) Ronald J. Vannuki is
the president of Fortuna Capital Management and a registered representative with
Strome Susskind Securities, L.P., a securities brokerage firm. Mr. Vannuki also
serves as a consultant to and a director of KRUG.
The business of (i) Fortuna Advisors is the provision of discretionary
investment management services to clients and (ii) Karen B. Brenner is president
of Fortuna Advisors. Ms. Brenner also serves as a consultant to and a director
of KRUG.
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
the president and CEO of CareVest. Mr. Thornton, Jr. also serves as president
and as a director of KRUG.
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 the general partner of
Fortuna Acquisition Partners; (iii) Fortuna Acquisition Corp. is 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, 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.
<PAGE> 20
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 20 OF 29 PAGES
------------------- -------------------
The business of Charles Linn Haslam is to serve as Director, Chairman
and Chief Executive Officer of KRUG.
(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) Fortuna Advisors is a
California corporation; (v) Karen B. Brenner is a United States citizen; (vi)
CareVest is a Georgia limited liability company; (vii) Robert M. Thornton, Jr.
is a United States citizen; (viii) Fortuna Acquisition Partners is a California
limited partnership; (ix) FC Partners is a California limited partnership; (x)
Fortuna Acquisition Corp. is a Delaware corporation; (xi) SS HedgeCap is a
Delaware limited partnership; (xii) HedgeCap Ltd. is a Cayman Islands
Corporation; (xiii) SSIM is a Delaware limited partnership; (xiv) SSCO is a
Delaware corporation; (xvi) Mark E. Strome is a United States citizen, and
(xvii) Charles Linn Haslam 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 $12,660.75. 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 Fortuna Advisors is $430,194. 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 $21,207 (exclusive of the shares
she beneficially owns through Fortuna Advisors). The source of funds for this
consideration was personal funds.
<PAGE> 21
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 21 OF 29 PAGES
------------------- -------------------
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 $21,340 (exclusive the
shares he beneficially owns through CareVest). 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
(exclusive of the shares owned beneficially through SS HedgeCap and HedgeCap
Ltd.). 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 $0. 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 net investment cost (including commissions if any) of the shares of
Stock beneficially owned by Charles Linn Haslam is $1,350.
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.
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 74,475
shares of Stock which includes 74,475 warrants to purchase shares of Stock.
Fortuna Investment Partners is the beneficial owner of 1.48% of the Stock.
(ii) Fortuna Capital Management, as general partner and
discretionary investment adviser to Fortuna Investment Partners, beneficially
owns
<PAGE> 22
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 22 OF 29 PAGES
------------------- -------------------
74,475 shares of Stock, which includes 74,475 warrants to purchase shares of
Stock. Fortuna Capital Management is.the beneficial owner of 1.48% of the Stock.
(iii) Ronald J. Vannuki, as sole shareholder and president
of Fortuna Capital Management, beneficially owns 74,475 shares of Stock, which
includes 74,475 warrants to purchase shares of Stock, and as an executive
officer of Fortuna Acquisition Corp., the ultimate General Partner of Fortuna
Acquisition Partners, beneficially owns 1,591,496 shares of stock, which
includes 296,722 warrants. Mr. Vannuki is the beneficial owner of 33.08% of the
Stock.
(iv) Fortuna Advisors, as discretionary investment adviser
to clients whose accounts hold the Stock, beneficially owns 114,520 shares of
Stock, which includes 7,670 warrants to purchase shares of Stock. Fortuna
Advisors is the beneficial owner of 2.27% of the Stock.
(v) Karen B. Brenner, as sole shareholder of Fortuna
Advisors and as a direct owner of shares of Stock, beneficially owns 123,140
shares of Stock, which includes 7,890 warrants to purchase shares of Stock, and
as an executive officer of Fortuna Acquisition Corp., the ultimate General
Partner of Fortuna Acquisition Partners, beneficially owns 1,591,496 shares of
stock, which includes 296,722 warrants. On April 3, 1997, Ms. Brenner obtained
sole voting and dispositive power over 3,000 shares as to which she previously
shared such powers. Ms. Brenner is the beneficial owner of 34.05% of the Stock.
(vi) CareVest beneficially owns 62,800 shares of Stock,
which includes 23,000 warrants to purchase shares of Stock. CareVest is the
beneficial owner of 1.25% of the Stock.
(vii) Robert M. Thornton, Jr., as controlling member of
CareVest and as a direct owner of shares of Stock, beneficially owns 68,000
shares of Stock, which includes 23,000 warrants to purchase shares of Stock. Mr.
Thornton, Jr. is the beneficial owner of 1.34% of the Stock.
(viii) Fortuna Acquisition Partners beneficially owns
1,591,496 shares of Stock, which includes 48,189 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 296,722 warrants to purchase Stock by FAP, which includes 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 31.61% of the Stock.
<PAGE> 23
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 23 OF 29 PAGES
------------------- -------------------
(ix) FC Partners, as general partner of Fortuna
Acquisition Partners, beneficially owns 1,591,496 shares of Stock, which
includes 296,722 warrants to purchase shares of Stock. FC Partners is the
beneficial owner of 31.61% of the Stock.
(x) Fortuna Acquisition Corp., as general partner of FC
Partners, beneficially owns 1,591,496 shares of Stock, which includes 296,722
warrants to purchase shares of Stock. Fortuna Acquisition Corp is the beneficial
owner of 31.61% of the Stock.
(xi) SS HedgeCap beneficially owns 48,189 shares of Stock,
which includes 48,189 warrants to purchase shares of Stock. SS HedgeCap is the
beneficial owner of 0.96% 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 0.32% 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 64,252 shares of Stock, which includes 64,252
warrants to purchase shares of Stock. SSIM is the beneficial owner of 1.28% of
the Stock.
(xv) SSCO, Inc., as general partner of SSIM, beneficially
owns 64,252 shares of the Stock, which includes 64,252 warrants to purchase
shares of Stock. SSCO, Inc. is the beneficial owner of 1.28% 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 64,252 shares of the Stock, which includes
64,252 warrants to purchase shares of Stock. Mr. Strome is the beneficial owner
of 1.28% of the Stock.
(xvii) Charles Linn Haslam beneficially owns 300 shares
(0.00%) of Stock
<PAGE> 24
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 24 OF 29 PAGES
------------------- -------------------
The Group in the aggregate may be deemed to own an aggregate of 36.9%
of the Stock.
(b)
<TABLE>
<CAPTION>
===============================================================
Power to Vote Power to Dispose
=======================================================================================================
No. of Shares
Beneficially Percentage
Owned (# 11) of Class (# 13) Sole (# 7) Shared (# 8) Sole (# 9) Shared(# 10)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Fortuna
Investment 74,475 1.48% 0 74,475 0 74,475
Partners
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Capital
Management 74,475 1.48% 0 74,475 0 74,475
- -------------------------------------------------------------------------------------------------------------------------------
Ronald J.
Vannuki 1,665,971 33.08% 0 1,665,971 0 1,665,971
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna
Advisors 114,520 2.27% 0 0 0 114,520
- -------------------------------------------------------------------------------------------------------------------------------
Karen B.
Brenner 1,714,636 34.05% 8,620 1,591,496 8,620 1,527,244
- -------------------------------------------------------------------------------------------------------------------------------
CareVest
Captial LLC 62,800 1.25% 0 62,800 0 62,800
- -------------------------------------------------------------------------------------------------------------------------------
Robert M.
Thornton, Jr. 68,000 1.35% 5,200 62,800 5,200 62,800
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna
Acquisition 1,591,496 31.61% 0 1,591,496 0 1,527,244
Partners
- -------------------------------------------------------------------------------------------------------------------------------
FC Partners 1,591,496 31.61% 0 1,591,496 0 1,527,244
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna
Acquisition 1,591,496 31.61% 0 1,591,496 0 1,527,244
Corp.
- -------------------------------------------------------------------------------------------------------------------------------
SS HedgeCap 48,189 0.96% 0 0 0 48,189
- -------------------------------------------------------------------------------------------------------------------------------
HedgeCap Ltd. 16,063 0.32% 0 0 0 16,063
- -------------------------------------------------------------------------------------------------------------------------------
SSIM 64,252 1.28% 0 0 0 64,252
- -------------------------------------------------------------------------------------------------------------------------------
SSCO, Inc. 64,252 1.28% 0 0 0 64,252
- -------------------------------------------------------------------------------------------------------------------------------
Mark E. Strome 64,252 1.28% 0 0 0 64,252
- -------------------------------------------------------------------------------------------------------------------------------
Charles Linn Haslam 300 0.00% 300 0 300 0
===============================================================================================================================
</TABLE>
<PAGE> 25
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 25 OF 29 PAGES
------------------- -------------------
(c) The trading dates, number of shares purchased or sold and price per
share for all transactions by the Reporting Persons since March 6, 1997 are set
forth on Schedule A hereto. All such transactions were open market transactions
and were effected on the American Stock Exchange or, in the case of Mssrs.
Haslam and Thornton, were acquired pursuant to the KRUG Employee Stock Purchase
Plan. 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> 26
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 26 OF 29 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: September 3, 1998
FORTUNA INVESTMENT PARTNERS, L.P.
By: Fortuna Capital Management, Inc.
its General Partner
By: /s/ Ronald J. Vannuki
------------------------------
Ronald J. Vannuki, President
FORTUNA CAPITAL MANAGEMENT, INC.
By: /s/ Ronald J. Vannuki
------------------------------
Ronald J. Vannuki, President
/s/ Ronald J. Vannuki
- ---------------------------
Ronald J. Vannukil
Individual
FORTUNA ADVISORS, INC.
By: /s/ Karen B. Brenner
------------------------------
Karen B. Brenner, President
/s/ Karen B. Brenner
- --------------------------
Karen B. Brenner
Individual
<PAGE> 27
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 27 OF 29 PAGES
------------------- -------------------
CAREVEST CAPITAL, LLC
By: /s/ Robert M. Thornton, Jr.
------------------------------
Robert M. Thornton, Jr., Manager
/s/ Robert M. Thornton, Jr.
- ------------------------------------
Robert M. Thornton, Jr.
Individual
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
FC PARTNERS, L.P.
By: Fortuna Acquisition Corp.
its General Parnter
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> 28
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 28 OF 29 PAGES
------------------- -------------------
STROME-SUSSKIND HEDGECAP FUND, L.P.
By: Strome Susskind Investment
Management, L.P.
its General Partner
By: SSCO, Inc.
its General Partner
By: /s/ Jeffrey Lambert
---------------------------------
Jeffrey Lambert, Chief Financial
Officer
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> 29
SCHEDULE 13D
------------------- -------------------
CUSIP NO. 501067102 PAGE 29 OF 29 PAGES
------------------- -------------------
SSCO, INC.
By: /s/ Jeffrey Lambert
-------------------------------------
Jeffrey Lambert, Chief Financial
Officer
/s/ Jeffrey Lambert
- -------------------------------------------------
Mark E. Strome by: Jeffrey Lambert
Individual Attorney-in-fact
/s/ Charles Linn Haslam
- --------------------------------------
Charles Linn Haslam
Individual
<PAGE> 30
SCHEDULE A
TRANSACTIONS SINCE MARCH 6, 1997
<TABLE>
<CAPTION>
BROKER EFFECTING
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
----- ---------- ------------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
Fortuna Investment Partners 04/24/97 (20,000) $ 92,096.91 $ 4.60 Bear Stearns
Fortuna Investment Partners 04/25/97 (5,000) 23,549.20 4.71 Bear Stearns
Fortuna Investment Partners 05/07/97 (7,000) 33,773.86 4.82 Bear Stearns
Fortuna Investment Partners 06/12/97 (2,000) 11,629.60 5.81 Bear Stearns
Fortuna Investment Partners 07/23/97 (5,000) 27,874.06 5.57 Bear Stearns
Fortuna Investment Partners 08/06/97 (3,000) 15,599.47 5.20 Bear Stearns
------- -----------
(42,000) $204,523.10
======= ===========
</TABLE>
<PAGE> 31
SCHEDULE A
TRANSACTIONS SINCE MARCH 6, 1997
<TABLE>
<CAPTION>
BROKER EFFECTING
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
----- ---------- ------------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
Fortuna Advisors 12/01/97 (4,000) $12,410.00 $ 3.10 Bear Stearns
Fortuna Advisors 02/09/98 (3,500) 17,746.79 5.07 Bear Stearns
Fortuna Advisors 04/23/98 (300) 1,885.03 6.28 Bear Stearns
------ ---------
(7,800) $32,041.82
====== ==========
</TABLE>
<PAGE> 32
SCHEDULE A
TRANSACTIONS SINCE MARCH 6, 1997
<TABLE>
<CAPTION>
BROKER EFFECTING
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
----- ---------- ------------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
Robert M. Thornton, Jr 01/29/98 200 $(850.00) $ 4.25 N/A
(pursuant to
Employee Stock
Purchase Plan)
</TABLE>
<PAGE> 33
SCHEDULE A
TRANSACTIONS SINCE MARCH 6, 1997
<TABLE>
<CAPTION>
BROKER EFFECTING
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
----- ---------- ------------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
Strome-Susskind Hedgecap Fund 05/21/97 (2,000) 11,544.61 $ 5.77 Bear Stearns
Strome-Susskind Hedgecap Fund 05/27/97 (2,000) 11,169.62 5.58 Bear Stearns
Strome-Susskind Hedgecap Fund 05/29/97 (41,400) 220,447.58 5.32 Bear Stearns
Strome-Susskind Hedgecap Fund 06/12/97 (2,200) 13,089.56 5.95 Bear Stearns
Strome-Susskind Hedgecap Fund 06/25/97 (20,000) 112,496.25 5.62 Bear Stearns
Strome-Susskind Hedgecap Fund 08/14/97 (43,020) 250,583.07 5.82 Bear Stearns
Strome-Susskind Hedgecap Fund 09/02/97 220 (1,210.00) 5.50 Bear Stearns
Strome-Susskind Hedgecap Fund 10/28/97 (16,200) 96,548.76 5.96 Bear Stearns
Strome-Susskind Hedgecap Fund 10/29/97 (450) 2,641.91 5.87 Bear Stearns
Strome-Susskind Hedgecap Fund 11/03/97 (6,575) 40,270.53 6.12 Bear Stearns
Strome-Susskind Hedgecap Fund 11/03/97 (4,250) 26,922.84 6.33 Bear Stearns
Strome-Susskind Hedgecap Fund 11/04/97 (4,250) 29,579.00 6.96 Bear Stearns
Strome-Susskind Hedgecap Fund 11/05/97 (4,250) 29,579.00 6.96 Bear Stearns
Strome-Susskind Hedgecap Fund 11/06//97 (850) 6,022.04 7.08 Bear Stearns
Strome-Susskind Hedgecap Fund 11/14/97 (13,175) 94,158.56 7.15 Bear Stearns
Strome-Susskind Hedgecap Fund 11/18/97 (12,750) 88,737.02 6.96 Bear Stearns
Strome-Susskind Hedgecap Fund 01/07/98 1,750 (10,570.00) 6.04 Bear Stearns
Strome-Susskind Hedgecap Fund 02/26/98 (21,250) 113,152.44 5.32 Bear Stearns
Strome-Susskind Hedgecap Fund 03/18/98 (52,750) 280,894.29 5.33 Bear Stearns
--------- ------------
(247,370) 1,427,837.08 SOLD - PROCEEDS
========= ============
1,970 (11,780.00) BOUGHT -PAID
========= ============
</TABLE>
<PAGE> 34
SCHEDULE A
TRANSACTIONS SINCE MARCH 6, 1997
<TABLE>
<CAPTION>
BROKER EFFECTING
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
----- ---------- ------------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
Strome Hedgecap Ltd 06/25/97 20,000 (112,500.00) $5.63 Bear Stearns
Strome Hedgecap Ltd 08/14/97 (4,780) 27,842.56 5.82 Bear Stearns
Strome Hedgecap Ltd 09/02/97 (220) 1,209.95 5.50 Bear Stearns
Strome Hedgecap Ltd 10/28/97 (1,800) 10,727.64 5.96 Bear Stearns
Strome Hedgecap Ltd 10/29/97 (50) 297.99 5.96 Bear Stearns
Strome Hedgecap Ltd 11/03/97 6,575 (40,271.88) 6.13 Bear Stearns
Strome Hedgecap Ltd 11/03/97 (750) 4,751.09 6.33 Bear Stearns
Strome Hedgecap Ltd 11/04/97 (750) 5,219.82 6.96 Bear Stearns
Strome Hedgecap Ltd 11/05/97 (750) 5,219.82 6.96 Bear Stearns
Strome Hedgecap Ltd 11/06/97 (150) 1,062.71 7.08 Bear Stearns
Strome Hedgecap Ltd 11/14/97 (2,325) 16,616.22 7.15 Bear Stearns
Strome Hedgecap Ltd 11/18/97 (2,250) 15,659.47 6.96 Bear Stearns
Strome Hedgecap Ltd 01/07/98 750 (4,530.00) 6.04 Bear Stearns
Strome Hedgecap Ltd 02/26/98 (3,750) 19,968.07 5.32 Bear Stearns
Strome Hedgecap Ltd 03/18/98 (9,750) 51,917.00 5.32 Bear Stearns
---------- ----------
27,325.00 (157,301.88) BOUGHT-PAID
========== ==========
(27,325.00) 160,492.34 SOLD - PROCEEDS
========== ==========
</TABLE>
<PAGE> 35
SCHEDULE A
TRANSACTIONS SINCE MARCH 6, 1997
<TABLE>
<CAPTION>
BROKER EFFECTING
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
----- ---------- ------------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
Charles Linn Haslam 01/29/98 300 $(1,350.00) $4.50 N/A
(pursuant to
Employee Stock
Purchase Plan)
</TABLE>
