<PAGE> 1
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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 No. 14-15457, dated January 4, 1979, effective
February 14, 1979 (as corrected by Release No. 34-15457A, dated February 25,
1979) and No. 34-14384, 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. 5)*
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)
SEPTEMBER 20, 1998
- --------------------------------------------------------------------------------
(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
CUSIP No. 501067102 SCHEDULE 13D PAGE 2 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
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
BENEFICIALLY 501,974
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
0
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
501,974
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,974
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.97%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
PN
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
CUSIP No. 501067102 SCHEDULE 13D PAGE 3 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
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
BENEFICIALLY 501,974
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
0
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
501,974
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,974
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.97%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
CO
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
CUSIP No. 501067102 SCHEDULE 13D PAGE 4 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
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
BENEFICIALLY 501,974
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
0
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
501,974
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
501,974
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.97%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
IN
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
CUSIP No. 501067102 SCHEDULE 13D PAGE 5 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
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
BENEFICIALLY 0
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
0
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
808,028
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
808,028
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.05%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
CO
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 6
CUSIP No. 501067102 SCHEDULE 13D PAGE 6 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
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 dispositive 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 7. SOLE VOTING POWER
OF SHARES
BENEFICIALLY 8,620
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
0
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
8,620
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
808,028
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
816,648
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.22%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
IN
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 7
CUSIP No. 501067102 SCHEDULE 13D PAGE 7 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
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
BENEFICIALLY 0
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
158,324
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
158,324
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
158,324
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.14%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
OO
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 8
CUSIP No. 501067102 SCHEDULE 13D PAGE 8 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
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
BENEFICIALLY 5,200
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
158,324
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
5,200
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
158,324
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
163,524
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.25%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
IN
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 9
CUSIP No. 501067102 SCHEDULE 13D PAGE 9 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
BAILEYS FAMILY TRUST
- -----------------------------------------------------------------------------------------------------------------------------
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
BENEFICIALLY 378,649
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
0
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
378,649
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
378,649
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.52%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
TR
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 10
CUSIP No. 501067102 SCHEDULE 13D PAGE 10 OF 18 PAGES
<TABLE>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
STEVEN BAILEYS
- -----------------------------------------------------------------------------------------------------------------------------
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. Baileys has sole dispositive power);
N/A (with respect to all other shares in which Mr. Baileys 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
BENEFICIALLY 715,198
OWNED BY EACH -------------------------------------------------------------------------------------------------------------
REPORTING
PERSON 8. SHARED VOTING POWER
WITH
0
-------------------------------------------------------------------------------------------------------------
9. SOLE DISPOSITIVE POWER
0
-------------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
715,198
-------------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
715,198
- -----------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- -----------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.20%
- -----------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
IN
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 11
SCHEDULE 13D
CUSIP No. 501067102 PAGE 11 OF 18 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, Georgia 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) The Baileys Family Trust with respect to shares of
Stock held by the Baileys Family Trust, and (ix) Steven Baileys as Trustee of
The Baileys Family Trust, to amend the holdings previously reported by such
persons, and to add and delete certain persons due to recent transactions. The
foregoing persons hereinafter sometimes are referred to collectively as the
"Reporting Persons" or the "Group".
Fortuna Acquisition Partners, FC Partners and Fortuna Acquisition Corp.
(the "Fortuna Acquisition Entities") are no longer members of the Group by
virtue of the distribution of their shares as of September 20, 1998 to their
partners and stockholders.
Strome Susskind HedgeCap Fund L.P., Strome HedgeCap Limited, Strome
Susskind Investment Management, L.P., SSCO, Inc., and Mark E. Strome (the
"Strome Entities") are no longer members of the Group by virtue of the
termination, on September 23, 1998, of the Proxy Agreement, previously filed
among Fortuna Acquisition Partners, FC Partners and Fortuna Acquisition Corp.
and the Strome Entities.
Charles Linn Haslam is no longer a member of the Group as a result of
the distribution of shares of the Fortuna Acquisition Entities and his
resignation as an officer and director of the Corporation.
<PAGE> 12
SCHEDULE 13D
CUSIP No. 501067102 PAGE 12 OF 18 PAGES
(b) The principal business address of (i) Fortuna Investment
Partners; (ii) Fortuna Capital Management; and (iii) Ronald J. Vannuki is 100
Wilshire Boulevard, Fifteenth Floor, Santa Monica, California 90401. 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 The Baileys Family Trust and Steven Baileys is c/o Karen B. Brenner, P.O. Box
9109, Newport Beach, California 92658-9109.
(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 also serves as chairman,
president and CEO and as a director of KRUG.
The business of (i) The Baileys Family Trust is an investor, and (ii)
Steven Baileys is as a private investor and to serve as the Trustee of The
Baileys Family Trust.
(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
<PAGE> 13
SCHEDULE 13D
CUSIP No. 501067102 PAGE 13 OF 18 PAGES
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) The Baileys Family Trust is a California Trust dated 9/4/96, and (ix)
Steven Baileys 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 $2,074,514.38. 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 $492,000 (exclusive of the
shares owned by The Baileys Family Trust and Steven Baileys). 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.
The net investment cost (including commissions if any) of the shares of
Stock beneficially owned by CareVest is $619,153. 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 The Baileys Family Trust is $1,839,916. 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 Steven Baileys is $1,673,883 (exclusive of shares
beneficially owned through The Baileys Family Trust).
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> 14
SCHEDULE 13D
CUSIP No. 501067102 PAGE 14 OF 18 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 501,974
shares of Stock, which includes 151,557 warrants to purchase shares of Stock.
Fortuna Investment Partners is the beneficial owner of 9.97% of the Stock.
(ii) Fortuna Capital Management, as general partner and
discretionary investment adviser to Fortuna Investment Partners, beneficially
owns 501,974 shares of Stock, which includes 151,557 warrants to purchase shares
of Stock. Fortuna Capital Management is the beneficial owner of 9.97% of the
Stock.
(iii) Ronald J. Vannuki, as sole shareholder and president of
Fortuna Capital Management, beneficially owns 501,974 shares of Stock, which
includes 151,557 warrants to purchase shares of Stock. Mr. Vannuki is the
beneficial owner of 9.97% of the Stock.
(iv) Fortuna Advisors, as discretionary investment adviser
to clients whose accounts hold the Stock, beneficially owns 808,028 shares of
Stock, which includes 110,662 warrants to purchase shares of Stock. Fortuna
Advisors is the beneficial owner of 16.05% of the Stock.
(v) Karen B. Brenner, as sole shareholder of Fortuna
Advisors and as a direct owner of shares of Stock, beneficially owns 816,648
shares of Stock, which includes 110,882 warrants to purchase shares of Stock.
Ms. Brenner is the beneficial owner of 16.22% of the Stock.
(vi) CareVest beneficially owns 158,324 shares of Stock,
which includes 37,540 warrants to purchase shares of Stock. CareVest is the
beneficial owner of 3.14% of the Stock.
(vii) Robert M. Thornton, Jr., as controlling member of
CareVest and as a direct owner of shares of Stock, beneficially owns 163,524
shares of Stock, which includes 37,540 warrants to purchase shares of Stock. Mr.
Thornton is the beneficial owner of 3.25% of the Stock.
(viii) The Baileys Family Trust beneficially owns 378,649
shares which includes 52,041 warrants. The Baileys Family Trust is the
beneficial owner of 7.52% of the Stock.
(ix) Steven Baileys, as individual and as Trustee of The
Baileys Family Trust, beneficially owns 715,198 shares including 102,982
warrants. Steven Baileys is the beneficial owner of 14.20% of the Stock.
<PAGE> 15
SCHEDULE 13D
CUSIP No. 501067102 PAGE 15 OF 18 PAGES
The Group in the aggregate may be deemed to own an aggregate
of 29.43 % 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 501,974 9.97% 501,974 0 501,974 0
Partners
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Capital
Management 501,974 9.97% 501,974 0 501,974 0
- ------------------------------------------------------------------------------------------------------------------------
Ronald J.
Vannuki 501,974 9.97% 501,974 0 501,974 0
- ------------------------------------------------------------------------------------------------------------------------
Fortuna
Advisors 808,028 16.05% 0 0 0 808,028
- ------------------------------------------------------------------------------------------------------------------------
Karen B.
Brenner 816,648 16.22% 8,620 0 8,620 816,648
- ------------------------------------------------------------------------------------------------------------------------
CareVest
Capital LLC 158,324 3.14% 0 158,324 0 158,324
- ------------------------------------------------------------------------------------------------------------------------
Robert M.
Thornton, Jr. 163,524 3.25% 5,200 158,324 5,200 158,324
- ------------------------------------------------------------------------------------------------------------------------
Baileys
Family Trust 378,649 7.52% 378,649 0 0 378,649
- ------------------------------------------------------------------------------------------------------------------------
Steven Baileys 715,198 14.20% 715,198 0 0 715,198
========================================================================================================================
</TABLE>
<PAGE> 16
SCHEDULE 13D
CUSIP No. 501067102 PAGE 16 OF 18 PAGES
(c) The trading dates, number of shares purchased or sold and
price per share for all transactions by the Reporting Persons since April 23,
1998 are set forth on Schedule A hereto. All such transactions were open market
transactions and were effected on the American Stock Exchange or were acquired
upon distribution of KRUG shares and warrants by the Fortuna Acquisition
Entities. 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
None
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> 17
SCHEDULE 13D
CUSIP No. 501067102 PAGE 17 OF 18 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: October 8, 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. Vannuki
Individual
FORTUNA ADVISORS, INC.
By: /s/ Karen B. Brenner
----------------------------
Karen B. Brenner, President
/s/ Karen B. Brenner
- ----------------------------
Karen B. Brenner
Individual
<PAGE> 18
SCHEDULE 13D
CUSIP No. 501067102 PAGE 18 OF 18 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
THE BAILEYS FAMILY TRUST
By: /s/ Steven Baileys
--------------------------------
Steven Baileys, Trustee
Officer
/s/ Steven Baileys
- --------------------------------
Steven Baileys
Individual
<PAGE> 19
SCHEDULE A
TRANSACTIONS SINCE APRIL 23, 1998
<TABLE>
<CAPTION>
========================================================================================================================
BROKER EFFECTING
- ------------------------------------------------------------------------------------------------------------------------
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners 09/20/98 429,317 shares $ 2,526,101.23 $5.88 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners 09/20/98 77,082 warrants 0 0 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners 09/24/98 (30,000) shares (88,794.50) 2.96 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners 09/25/98 (2,000) shares (5,832.30) 2.92 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners 09/28/98 (5,500) shares (16,286.95) 2.96 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners 09/29/98 (400) shares (1,181.46) 2.95 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners 10/06/98 (21,000) shares (55,656.10) 2.65 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners 10/07/98 (20,000) shares (49,195.83) 2.46 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
506,399 $ 2,526,101.23
==================================
(78,900) $ (216,947.14)
==================================
</TABLE>
(1) Distribution from Fortuna Acquisition Entities. The Net Amount and Per
Share reflect the original cost of such shares.
<PAGE> 20
SCHEDULE A
TRANSACTIONS SINCE APRIL 23, 1998
<TABLE>
<CAPTION>
========================================================================================================================
BROKER EFFECTING
- ------------------------------------------------------------------------------------------------------------------------
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors 08/03/98 5,000 shares $ 18,852.50 $3.77 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors 09/20/98 7,300 shares 42,953.42 5.88 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors 09/20/98 1,310 warrants 0 0 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors (2) (34,000) shares (137,027.17) 4.03 N/A (2)
- ------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors (2) (1,300) warrants 0 0 N/A (2)
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
13,610 $ 61,805.92
================================
(35,300) $(137,027.17)
================================
</TABLE>
(1) Distribution from Fortuna Acquisition Entities. The Net Amount and Per
Share reflect the original cost of such shares.
(2) Change of beneficial ownership of shares and warrants owned by The
Baileys Family Trust prior to such Trust becoming a member of the Group
<PAGE> 21
SCHEDULE A
TRANSACTIONS SINCE APRIL 23 1998
<TABLE>
<CAPTION>
========================================================================================================================
BROKER EFFECTING
- ------------------------------------------------------------------------------------------------------------------------
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
CareVest Capital, LLC 09/20/98 80,984 shares $455,802.61 $5.63 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------
CareVest Capital, LLC 09/20/98 14,540 warrants 0 0 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
95,524 $455,802.61
==============================
</TABLE>
(1) Distribution from Fortuna Acquisition Entities. The Net Amount and Per
Share reflect the original cost of such shares.
<PAGE> 22
SCHEDULE A
TRANSACTIONS SINCE APRIL 23, 1998
<TABLE>
<CAPTION>
==============================================================================================================================
BROKER EFFECTING
- ------------------------------------------------------------------------------------------------------------------------------
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Acquisition Partners 09/20/98 (1,294,774) shares $(7,618,450.00) $5.88 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Acquisition Partners 09/20/98 (252,470) warrants 0 0 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
(1,547,244) $(7,618,450.00)
======================================
</TABLE>
(1) Distribution from Fortuna Acquisition Entities. The Net Amount and Per
Share reflect the original cost of such shares.
<PAGE> 23
SCHEDULE A
TRANSACTIONS SINCE APRIL 23, 1998
<TABLE>
<CAPTION>
==============================================================================================================================
BROKER EFFECTING
- ------------------------------------------------------------------------------------------------------------------------------
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
The Baileys Family Trust 07/31/98 11,000 shares $ 44,222.50 $4.02 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
The Baileys Family Trust 08/26/98 (1,000) shares (4,207.35) 4.21 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
The Baileys Family Trust 09/20/98 282,608 shares 1,662,813.97 5.88 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------------
The Baileys Family Trust 09/26/98 50,741 warrants 0 0 N/A (1)
- ------------------------------------------------------------------------------------------------------------------------------
The Baileys Family Trust (2) 34,000 shares 137,027.17 4.03 N/A (2)
- ------------------------------------------------------------------------------------------------------------------------------
The Baileys Family Trust (2) 1,300 warrants 0 0.00 N/A (2)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
379,649 $1,844,063.64
====================================
(1,000) $ (4,207.35)
====================================
</TABLE>
(1) Distribution from Fortuna Acquisition Entities. The Net Amount and Per
Share reflect the original cost of such shares.
(2) Change of beneficial ownership of shares and warrants purchased prior
to becoming a member of the Group and previously reported as
beneficially owned by Fortuna Advisors, Inc.
<PAGE> 24
SCHEDULE A
TRANSACTIONS SINCE APRIL 23, 1998
<TABLE>
<CAPTION>
=======================================================================================================================
BROKER EFFECTING
- -----------------------------------------------------------------------------------------------------------------------
PARTY TRADE DATE BOUGHT (SOLD) NET AMOUNT PER SHARE TRANSACTION
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Steven Baileys 09/20/98 282,608 shares $1,662,873.97 $5.88 N/A (1)
- -----------------------------------------------------------------------------------------------------------------------
Steven Baileys 09/26/98 50,741 warrants 0 0 N/A (1)
- -----------------------------------------------------------------------------------------------------------------------
Steven Baileys (2) 3,000 shares 11,009.00 3.67 (2)
- -----------------------------------------------------------------------------------------------------------------------
Steven Baileys (2) 200 warrants 0 0 (2)
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
336,549 $1,673,882.97
==================================
</TABLE>
(1) Distribution from Fortuna Acquisition Entities. The Net Amount and Per
Share reflect the original cost of such shares.
(2) Purchased prior to becoming member of the Group
