<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).*
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D/A
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 6)*
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)
OCTOBER 22, 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.)
- -----------
*As amended by Releases No. 34-15457, 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.
<PAGE> 2
(Continued on following page(s))
CUSIP No. 501067102 SCHEDULE 13D PAGE 2 OF 15 PAGES
<TABLE>
<S> <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 190,875
BENEFICIALLY ---------------------------------------------------------------------------------------------------------
OWNED BY EACH 8. SHARED VOTING POWER
REPORTING 0
PERSON ---------------------------------------------------------------------------------------------------------
WITH 9. SOLE DISPOSITIVE POWER
190,875
---------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
0
---------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
190,875
- ---------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.72 %
- ---------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
PN
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
CUSIP No. 501067102 SCHEDULE 13D PAGE 3 OF 15 PAGES
<TABLE>
<S> <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 190,875
BENEFICIALLY ---------------------------------------------------------------------------------------------------------
OWNED BY EACH 8. SHARED VOTING POWER
REPORTING 0
PERSON ---------------------------------------------------------------------------------------------------------
WITH 9. SOLE DISPOSITIVE POWER
190,875
---------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
0
---------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
190,875
- ---------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.72 %
- ---------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
CO
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
CUSIP No. 501067102 SCHEDULE 13D PAGE 4 OF 15 PAGES
<TABLE>
<S> <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 190,875
BENEFICIALLY ---------------------------------------------------------------------------------------------------------
OWNED BY EACH 8. SHARED VOTING POWER
REPORTING 0
PERSON ---------------------------------------------------------------------------------------------------------
WITH 9. SOLE DISPOSITIVE POWER
190,875
---------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
0
---------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
190,875
- ---------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.72 %
- ---------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
IN
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
CUSIP No. 501067102 SCHEDULE 13D PAGE 5 OF 15 PAGES
<TABLE>
<S> <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 0
BENEFICIALLY ---------------------------------------------------------------------------------------------------------
OWNED BY EACH 8. SHARED VOTING POWER
REPORTING 0
PERSON ---------------------------------------------------------------------------------------------------------
WITH 9. SOLE DISPOSITIVE POWER
0
---------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
815,228
---------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
815,228
- ---------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.00 %
- ---------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
CO
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 6
CUSIP No. 501067102 SCHEDULE 13D PAGE 6 OF 15 PAGES
<TABLE>
<S> <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 12,120
BENEFICIALLY ---------------------------------------------------------------------------------------------------------
OWNED BY EACH 8. SHARED VOTING POWER
REPORTING 0
PERSON ---------------------------------------------------------------------------------------------------------
WITH 9. SOLE DISPOSITIVE POWER
12,120
---------------------------------------------------------------------------------------------------------
10. SHARED DISPOSITIVE POWER
815,228
---------------------------------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
827,348
- ---------------------------------------------------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
- ---------------------------------------------------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.30 %
- ---------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
IN
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 7
CUSIP No. 501067102 SCHEDULE 13D PAGE 7 OF 15 PAGES
<TABLE>
<S> <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 378,649
BENEFICIALLY ---------------------------------------------------------------------------------------------------------
OWNED BY EACH 8. SHARED VOTING POWER
REPORTING 0
PERSON ---------------------------------------------------------------------------------------------------------
WITH 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)
7.53 %
- ---------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
[TR]
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 8
CUSIP No. 501067102 SCHEDULE 13D PAGE 8 OF 15 PAGES
<TABLE>
<S> <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 715,198
BENEFICIALLY ---------------------------------------------------------------------------------------------------------
OWNED BY EACH 8. SHARED VOTING POWER
REPORTING 0
PERSON ---------------------------------------------------------------------------------------------------------
WITH 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)
14.10 %
- ---------------------------------------------------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON*
IN
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 9
SCHEDULE 13D
CUSIP NO. 501067102 PAGE 9 OF 15 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 February 3, 1999, as set forth in the
Company's Quarterly Report on Form 1O-Q for the period ended December 31, 1998,
is 4,977,530.
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) The Baileys Family Trust with respect to shares of Stock
held by the Baileys Family Trust, and (vii) Steven Baileys as Trustee of The
Baileys Family Trust, to amend the holdings previously reported by such
persons, and to delete certain persons due to recent transactions. The
foregoing persons hereinafter sometimes are referred to collectively as the
"Reporting Persons" or the "Group".
CareVest Capital, LLC and Robert M. Thornton, Jr. are no longer
members of the Group by virtue of the distribution of shares by the Fortuna
Acquisition Estates as of September 20, 1998 to their partners and
stockholders.
(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 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.
<PAGE> 10
SCHEDULE 13D
CUSIP NO. 501067102 PAGE 10 OF 15 PAGES
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) 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 a United States citizen; (iv) Fortuna Advisors is a
California corporation; (v) Karen B. Brenner is a United States citizen; (vi)
The Baileys Family Trust is a California Trust dated 9/4/96, and (vii) 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 $228,044. 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 $505,908 (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 $27,163 (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 The Baileys Family Trust is $1,839,916. The
source of funds for this consideration was working capital.
<PAGE> 11
SCHEDULE 13D
CUSIP NO. 501067102 PAGE 11 OF 15 PAGES
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.
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
190,875 shares of Stock, which includes 151,557 warrants to purchase shares of
Stock. Fortuna Investment Partners is the beneficial owner of 3.7% of the
Stock.
(ii) Fortuna Capital Management, as general partner and
discretionary investment adviser to Fortuna Investment Partners, beneficially
owns 190,875 shares of Stock, which includes 151,557 warrants to purchase
shares of Stock. Fortuna Capital Management is the beneficial owner of 3.7% of
the Stock.
(iii) Ronald J. Vannuki, as sole shareholder and president
of Fortuna Capital Management, beneficially owns 190,875 shares of Stock, which
includes 151,557 warrants to purchase shares of Stock. Mr. Vannuki is the
beneficial owner of 3.7% of the Stock.
(iv) Fortuna Advisors, as discretionary investment
adviser to clients whose accounts hold the Stock, beneficially owns 815,228
shares of Stock, which includes 110,662 warrants to purchase shares of Stock.
Fortuna Advisors is the beneficial owner of 16.0% of the Stock.
(v) Karen B. Brenner, as sole shareholder of Fortuna
Advisors and as a direct owner of shares of Stock, beneficially owns 827,348
shares of Stock, which includes 110,882 warrants to purchase shares of Stock.
Ms. Brenner is the beneficial owner of 16.3% of the Stock.
(vi) The Baileys Family Trust beneficially owns 378,649
shares which includes 52,041 warrants. The Baileys Family Trust is the
beneficial owner of 7.5 of the Stock.
(vii) 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 14.1% of the Stock.
<PAGE> 12
SCHEDULE 13D
CUSIP NO. 501067102 PAGE 12 OF 15 PAGES
The Group in the aggregate may be deemed to own an aggregate
of 19.43% 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 190,875 3.7% 190,875 0 190,875 0
Partners
- -------------------------------------------------------------------------------------------------------------------------
Fortuna Capital
Management 190,875 3.7% 190,875 0 190,875 0
- -------------------------------------------------------------------------------------------------------------------------
Ronald J.
Vannuki 190,875 3.7% 190,875 0 190,875 0
- -------------------------------------------------------------------------------------------------------------------------
Fortuna
Advisors 815,228 16.0% 0 0 0 815,228
- -------------------------------------------------------------------------------------------------------------------------
Karen B.
Brenner 827,348 16.3% 12,120 0 12,120 815,228
- -------------------------------------------------------------------------------------------------------------------------
Baileys
Family Trust 378,649 7.5% 378,649 0 0 378,649
- -------------------------------------------------------------------------------------------------------------------------
Steven Baileys 715,198 14.1% 715,198 0 0 715,198
=========================================================================================================================
</TABLE>
<PAGE> 13
SCHEDULE 13D
CUSIP NO. 501067102 PAGE 13 OF 15 PAGES
(c) The trading dates, number of shares purchased or sold and
price per share for all transactions by the Reporting Persons since October 7,
1998 are set forth on Schedule A hereto. All such transactions were open market
transactions and were effected on the American Stock Exchange. No other
transactions were effected by the Reporting Persons during such period.
(d) No person other than each respective owner referred to herein
of Stock is known to have the right to receive or the power to direct the
receipt of dividends from or the proceeds of sale of such Stock.
(e) Not applicable.
Item 6 Contracts, Arrangements, Understandings or Relationships with Respect
to Securities of the Issuer
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> 14
SCHEDULE 13D
CUSIP NO. 501067102 PAGE 14 OF 15 PAGES
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
Dated: March 30, 1999
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> 15
SCHEDULE 13D
CUSIP NO. 501067102 PAGE 15 OF 15 PAGES
THE BAILEYS FAMILY TRUST
By: /s/ Steven Baileys
-----------------------
Steven Baileys, Trustee
Officer
/s/ Steven Baileys
- -------------------------------
Steven Baileys
Individual
<PAGE> 16
Schedule A
Transactions Since October 7, 1998
1 of 2
<TABLE>
<CAPTION>
==============================================================================================================================
Broker Effecting
- ------------------------------------------------------------------------------------------------------------------------------
Party Trade Date Bought (Sold) Net Amount Per Share Transaction
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
Fortuna Investment Partners, LP 10/08/98 (50,000) Shares $124,993.33 $2.50 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 10/16/98 (200) Shares $ 497.48 $2.49 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 10/20/98 (100) Shares $ 643.49 $6.43 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 10/22/98 (10,000) Shares $ 23,746.70 $2.37 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 10/23/98 (300) Shares $ 709.97 $2.37 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 10/27/98 (25,000) Shares $ 62,495.41 $2.50 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 10/28/98 (50,000) Shares $124,993.33 $2.50 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 10/28/98 (75,000) Shares $187,491.25 $2.50 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 10/29/98 (35,000) Shares $ 86,493.61 $2.47 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 11/02/98 (500) Shares $ 1,372.45 $2.74 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 11/04/98 (1,000) Shares $ 2,747.40 $2.75 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 11/09/98 (10,000) Shares $ 25,846.63 $2.58 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 12/02/98 (4,000) Shares $ 7,497.25 $1.87 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 12/03/98 (8,200) Shares $ 14,146.94 $1.73 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 12/08/98 (4,500) Shares $ 7,872.23 $1.75 Bear Stearns
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 17
Schedule A
Transactions Since October 7, 1998
2 of 2
<TABLE>
<CAPTION>
===============================================================================================================================
Broker Effecting
- -------------------------------------------------------------------------------------------------------------------------------
Party Trade Date Bought (Sold) Net Amount Per Share Transaction
===============================================================================================================================
<S> <C> <C> <C> <C> <C>
Fortuna Investment Partners, LP 12/09/98 (1,100) Shares $ 1,922.43 $1.75 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 12/11/98 (400) Shares $ 697.47 $1.74 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 12/14/98 (2,000) Shares $ 3,497.38 $1.75 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 12/17/98 (2,600) Shares $ 4,547.34 $1.75 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 12/28/98 (200) Shares $ 347.48 $1.74 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 12/29/98 (500) Shares $ 872.47 $1.74 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 01/06/99 (10,000) Shares $ 15,046.99 $1.50 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 01/18/99 (500) Shares $ 747.47 $1.49 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
Fortuna Investment Partners, LP 01/12/99 (20,000) Shares $ 29,996.50 $1.50 Bear Stearns
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
Total: (311,100) Shares $729,223.00
- ----------------------------------===========================================================----------------------------------
</TABLE>
<PAGE> 18
Schedule A
Transactions Since October 7, 1998
<TABLE>
<CAPTION>
================================================================================================================================
Broker Effecting
- --------------------------------------------------------------------------------------------------------------------------------
Party Trade Date Bought (Sold) Net Amount Per Share Transaction
================================================================================================================================
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors 12/07/98 (3,500) Shares $ 5,853.55 $ 1.67 Bear Stearns
- --------------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors 01/08/99 10,000 Shares $12,702.50 $(1.27) Bear Stearns
- ---------------------------------------------------------------------------------------------------------------------------------
Fortuna Advisors 01/13/99 700 Shares $ 1,102.50 $(1.58) Bear Stearns
Bought 10,700 Shares $13,805.00
-------------------------------------------------------
Sold (3,500) Shares $ 5,853.55
-------------------------------------------------------
</TABLE>
<PAGE> 19
Schedule A
Transactions Since October 7, 1998
<TABLE>
<CAPTION>
================================================================================================================================
Broker Effecting
- --------------------------------------------------------------------------------------------------------------------------------
Party Trade Date Bought (Sold) Net Amount Per Share Transaction
================================================================================================================================
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Karen Brenner 12/07/98 3,500 Shares $5,956.25 $1.70 Bear Stearns
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
