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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 13 )*
TIMCO Aviation Services, Inc.
(Name of Issuer)
Common
Stock, $0.001 par value
(Title of Class of Securities)
(CUSIP Number)
Lacy J. Harber
LJH, Ltd.
377 Neva Lane
Denison, Texas 75020
(903) 465-6937
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
(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 that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
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1 |
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NAMES OF REPORTING PERSONS:
Lacy J. Harber |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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PF |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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United States |
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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0 shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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15,385,812 shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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15,385,812 shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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0 shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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15,385,812 shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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71.8% |
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14 |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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IN |
2
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1 |
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NAMES OF REPORTING PERSONS:
John R. Cawthron |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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2 |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
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(a) þ |
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(b) o |
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3 |
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SEC USE ONLY: |
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4 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
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00 |
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5 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
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o |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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United States
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7 |
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SOLE VOTING POWER: |
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NUMBER OF |
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0 shares |
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SHARES |
8 |
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SHARED VOTING POWER: |
BENEFICIALLY |
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OWNED BY |
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15,385,812 shares |
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EACH |
9 |
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SOLE DISPOSITIVE POWER: |
REPORTING |
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PERSON |
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15,385,812 shares |
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WITH |
10 |
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SHARED DISPOSITIVE POWER: |
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0 shares |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: |
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15,385,812 shares |
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12 |
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS): |
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o
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13 |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): |
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71.8% |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS): |
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IN |
3
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NAMES OF REPORTING PERSONS: |
1 |
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TAS Holding, Inc. |
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I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): |
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xxx-xx-xxxx |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS): |
2 |
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(a) R |
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(b) £ |
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SEC USE ONLY: |
3 |
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SOURCE OF FUNDS (SEE INSTRUCTIONS): |
4 |
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00 |
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CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e): |
5 |
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£ |
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CITIZENSHIP OR PLACE OF ORGANIZATION: |
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Delaware |
NUMBER
OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
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SOLE VOTING POWER: |
7 |
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0 shares |
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SHARED VOTING POWER: |
8 |
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0 shares |
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SOLE DISPOSITIVE POWER: |
9 |
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0 shares |
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SHARED DISPOSITIVE POWER: |
10 |
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0 shares |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
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11 |
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0 shares
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CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
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12
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£
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
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13 |
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0.0% |
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TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
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14 |
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CO
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4
AMENDMENT TO SCHEDULE 13D
This Amendment to Schedule 13D (this Schedule 13D/A) constitutes Amendment No. 13 to the
Schedule 13D, as amended (the LJH Schedule 13D), filed by Lacy J. Harber, John R. Cawthron and
TAS Holding, Inc.
Item 1. Security and Issuer
This Schedule 13D/A relates to the common stock, $0.001 par value per share (the Common
Stock) of TIMCO Aviation Services, Inc., a Delaware corporation (the Issuer), whose principal
executive offices are located at 623 Radar Road, Greensboro, North Carolina 27410.
All percentages of the class of Common Stock used herein are calculated based upon
21,441,040 shares of Common Stock outstanding as of March 31, 2006, as reported by the Issuer in
its Form 10-Q for the period then ended.
Item 2. Identity and Background
This Schedule 13D/A is filed by Lacy J. Harber, John R. Cawthron and TAS Holding, Inc., a
Delaware corporation (Newco and, collectively, with Messrs. Harber and Cawthron, the Reporting
Persons). The Reporting Persons have agreed to file this Schedule 13D/A jointly. Each of the
Reporting Persons is responsible for the completeness and accuracy of the information concerning
such person contained in this Schedule 13D/A.
Lacy J. Harber is the ultimate beneficial owner of all of the 15,385,812 shares of Common
Stock that are reported in this Schedule 13D/A as owned of record by LJH, Ltd. (LJH). All of such
shares of Common Stock are owned of record by LJH, a Texas limited partnership, the sole general
partner of which is DLH Management, L.L.C. (DLH) and Mr. Harber is the sole managing member of
DLH. Mr. Harber is the ultimate beneficial owner of LJH and therefore the ultimate beneficial owner
of all of such shares of Common Stock. Mr. Harber has sole dispositive power over all of such
shares of Common Stock. LJH has granted to Mr. Cawthron a revocable proxy to vote all shares of
Common Stock that LJH would be entitled to vote at any annual or special meeting of the
stockholders of the Issuer. Mr. Harber therefore shares voting power with respect to such shares
with Mr. Cawthron.
The principal business of LJH is investments and its business address, and the business
address of Mr. Harber and of LJH is 377 Neva Lane, Denison, Texas, 75020. Mr. Harber, a
self-employed investor, is a citizen of the United States of America.
John R. Cawthron is the holder of a revocable proxy to vote all shares of Common Stock that
LJH would be entitled to vote at any annual or special meeting of the stockholders of the Issuer.
Mr. Cawthron therefore shares voting power with respect to such shares with Mr. Harber. Mr.
Cawthron has no dispositive power with respect to such shares, and disclaims any pecuniary interest
in such shares. Mr. Cawthron was elected as a member of the Issuers board of directors by action
of the board effective February 6, 2006 and became the chief executive officer of the Issuer
effective April 20,2006.
The principal business address of Mr. Cawthron is 623 Radar Road, Greensboro, North Carolina
27410. Mr.
Cawthron also serves as managing partner and a director for several Texas-based business ventures
ranging from service entities to commercial land development. Mr. Cawthron is a citizen of the
United States of America.
Newco (TAS Holding, Inc.) is a Delaware corporation, formed on April 10, 2006, for the purpose
of engaging in the proposed transactions described in Items 4 and 6. Mr. Cawthron is the sole
officer and director of Newco. The business address of Newco is 377 Neva Lane, Denison, Texas,
75020.
During the last five years, none of Mr. Harber, Mr. Cawthron, Newco or LJH has been convicted
in a criminal proceeding (excluding traffic violations or similar misdemeanors) or was 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.
The Reporting Persons believe that upon receipt of confirmation of the Special Committee of
the Issuers board of directors that the Issuer was willing to proceed with negotiations of the
transactions described in items 4 and 6 below, they formed a group for
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purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the Exchange
Act), and Rule 13d-1 thereunder, with: Owl Creek I, L.P., a Delaware limited partnership (Owl
Creek I); Owl Creek II, L.P., a Delaware limited partnership (Owl Creek II); Owl Creek Advisors,
LLC, a Delaware limited liability company that is the general partner of Owl Creek I and Owl Creek
II (the OC General Partner); Owl Creek Asset Management, L.P. a Delaware limited partnership (the
OC Investment Manager), which is the investment manager for Owl Creek Overseas Fund, Ltd., an
exempted company organized under the laws of the Cayman Islands (Owl Creek Overseas), and for Owl
Creek Overseas Fund II, Ltd., an exempted company organized under the laws of the Cayman Islands
(Owl Creek Overseas II); and Jeffrey A. Altman. Owl Creek I, Owl Creek II, Owl Creek Overseas and
Owl Creek Overseas II are sometimes referred to collectively in this Schedule 13D/A as the Owl
Creek Investors. The Owl Creek Investors, the OC General Partner, the OC Investment Manager and
Jeffrey A. Altman are sometimes referred to collectively in this Schedule 13D/A as the Owl Creek
Parties. The Owl Creek Investors and LJH are sometimes referred to collectively in this Schedule
13D/A as the Investors.
The Owl Creek Parties and the Reporting Persons have elected to satisfy their filing
requirements with respect to Schedule 13D by making individual filings (one filing for the
Reporting Persons and one filing for the Owl Creek Parties) rather than by making a single joint
filing. For information regarding the Owl Creek Parties, including information with respect to the
Items called for by Schedule 13D, please see the Owl Creek 13D, which is available on the SECs
website at www.sec.gov.
Item 3. Source and Amount of Funds and Other Consideration
All shares of Common Stock purchased by LJH have been purchased using personal investment
funds on hand or provided by Mr. Harber, including funds borrowed from a financial institution
using a personal line of credit that is not secured by the Common Stock owned or to be acquired by
LJH. All funds to be provided by LJH for deposit in escrow as described in Items 4 and 6 below will
come from the same sources.
Funds required by Newco for the transactions described in Items 4 and 6 will be provided by
capital contributions from LJH and from the Owl Creek Parties pursuant to the Transaction
Agreement.
Item 4. Purpose of Transaction
Newco and the Issuer have resumed their discussions, which were suspended in April 2006,
regarding Newcos proposal that the Issuer agree to merge with Newco in a transaction that would
pay holders of the Issuers outstanding Common Stock, other than the Investors, cash consideration
of $4.00 per share (the Merger). A special committee of the Issuers board of directors is
considering this proposal and the parties are negotiating the terms of a definitive agreement
providing for the Merger. Due to the uncertainties inherent in negotiations of this nature, there
can be no assurance that binding definitive agreements with respect to these matters will be
concluded or that the Merger will occur. Newco reserves the right to withdraw its proposal
regarding the Merger at any time prior to the execution of binding definitive agreements with the
Issuer.
If the Issuer enters into an agreement with Newco providing for the Merger and the Merger is
consummated, Newco will own 100% of the Common Stock of the Issuer, the Issuer will become eligible
for termination of registration pursuant to Section 12(g)(4) of the Exchange Act, the composition
of the board of directors of the Issuer would be changed to include individuals designated by the
Investors and the Common Stock would no longer be traded or quoted. The Merger might also result in
the occurrence of one or more of the other matters in the list enumerated below. The Merger would
be made expressly subject to the conditions that all required filings with the SEC by the Issuer,
Newco, LJH and the Owl Creek Parties must have been made, and all related deliveries of documents
to the stockholders of the Issuer and passage of notice periods must have occurred, as required
under Section 13(e) of the Securities Exchange Act of 1934 and the rules and regulations
thereunder.
Except as described above or in Item 6, the Reporting Persons have no current plans or
proposals which relate to or would result in:
(a) the acquisition by any person of additional securities of the Issuer, or the disposition
of securities of the Issuer;
(b) an extraordinary corporate transaction, such as a merger, reorganization or liquidation,
involving the Issuer or any of its subsidiaries;
(c) a sale or transfer of a material amount of assets of the Issuer or any of its
subsidiaries;
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(d) any change in the present board of directors or management of the Issuer, including any
plans or proposals to change the number of term of directors or to fill any existing vacancies on
the board of directors of the Issuer;
(e) any material change in the present capitalization or dividend policy of the Issuer;
(f) any other material change in the Issuers business or corporate structure;
(g) changes in the Issuers charter, by-laws or instruments corresponding thereto or other
actions which may impede the acquisition of control of the Issuer by any person;
(h) causing a class of securities of the Issuer to be delisted from a national securities
exchange or to cease to be authorized to be quoted in an interdealer quotation system of a
registered national securities association;
(i) a class of equity securities of the Issuer becoming eligible for termination of
registration pursuant to Section 12(g)(4) of the Exchange Act; or
(j) any action similar to any of those enumerated above.
LJH intends to continuously review its investment in the Issuer, and, subject to the
provisions of the Transaction Agreement referenced at Item 6, may, at any time and from time to
time, review or reconsider its position and formulate plans or proposals that relate to, might
result in, or have the purpose or effect of resulting in the matters enumerated above. Subject to
the Transaction Agreement and compliance with applicable law, LJH may make further purchases of
Common Stock from time to time and may dispose of any or all of the Common Stock of the Issuer that
it holds. LJH may, alone or with others, pursue further discussions with the Issuer, other
stockholders, including the Owl Creek Parties and third parties, with respect to its investment in
the Issuer, and may change its intention with respect to any and all matters described in Item 4.
To the extent the indebtedness of the Issuer held by the Investors becomes in default in the
future, the Investors may exercise their rights as the lenders thereunder. The Reporting Persons
may engage in additional discussions with the Issuers other lenders regarding the terms of the
Issuers indebtedness and regarding other matters relating to the Issuer. Subject to the Amended
Transaction Agreement, the Reporting Persons may also in the future (although they have no
obligation to do so) propose other arrangements or enter into agreements with the Issuers other
lenders seeking to resolve loan covenant defaults or seeking modifications of terms of the Issuers
indebtedness to avoid restrictions that limit the availability of funding to the Issuer. If any
such agreements are reached in the future, LJH may seek compensation from the Issuer for any
actions by LJH with respect to the Issuers lenders which benefit the Issuer, which compensation
may include the payment of cash or the issuance of additional equity or debt securities of the
Issuer.
Item 5. Interest in Securities of the Issuer
As of the date of this Schedule 13D/A, Mr. Harber beneficially owns 15,385,812 shares of the
issued and outstanding Common Stock, constituting 71.76% of the issued and outstanding Common Stock
(calculated in accordance with Rule 13d-3(d)). LJH has granted a revocable proxy to vote such
shares to Mr. Cawthron. As a result of such proxy, Mr. Cawthron shares the power to vote the
Shares. Mr. Harber continues to have sole dispositive power with respect to all of these shares.
Other than the shares with respect to which he holds a revocable proxy, as described above, Mr.
Cawthron does not beneficially own any other shares of Common Stock.
In addition to such shares, as of the date of this Schedule 13D/A, Mr. Harber also
beneficially owns the following derivative securities of the Issuer: (i) LJH holds a warrant which
will allow it to purchase an additional 47,125 shares of authorized but unissued Common Stock (for
an aggregate exercise price of $1,885) upon the final maturity of the Issuers remaining
outstanding 8% senior subordinated convertible PIK notes due 2006 and 8% junior subordinated
convertible PIK notes due 2007 (the LJH Warrant); and (ii) warrants to purchase an aggregate of
shares of 48,183 shares of Common Stock at exercise prices ranging from $42.00 per share to $700.00
per share.
Other than as described in Item 4 or Item 6 of this Schedule 13D/A, none of the Reporting
Persons has effected any transactions in the Common Stock during the past 60 days.
Based on the Owl Creek 13D, as amended to June 27, 2006, the Reporting Persons believe that
the Owl Creek Parties, or some of them, are the beneficial owners of an aggregate of 3,722,399
shares of Common Stock, representing 17.36% of the outstanding Common Stock. Combined with the
15,385,812 shares of Common Stock owned of record by LJH, LJH and the Owl Creek Investors together
own 19,208,211 shares of Common Stock, representing 89.12% of the outstanding Common Stock. LJH and
Mr. Harber
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disclaim any beneficial interest in the Common Stock owned by the Owl Creek Investors and
disclaim any beneficial interest in Newco other than to the extent of their pecuniary interest.
Item 6. Contracts, Arrangements, Understandings or Relationships with respect to Securities of the
Issuer.
LJH, Newco and the Owl Creek Investors entered into an Amended and Restated Transaction
Agreement dated as of April 20, 2006 (the Transaction Agreement) which amended and restated the
Transaction Agreement dated as of April 10, 2006 (the Initial Transaction Agreement). A copy of
the Transaction Agreement was filed as Exhibit 99.2 to Amendment No. 12 to the Schedule 13D/A of
the Reporting Persons and is incorporated by reference herein. The summary of the Transaction
Agreement set forth herein is qualified in its entirety by reference to the full text of the
Transaction Agreement.
In accordance with the Initial Transaction Agreement, LJH entered into an Assignment and
Acceptance (the Assignment and Acceptance) dated as of April 10, 2006, among Monroe, Fortress and
Monroe Investments, Inc., as assignors (collectively, the Assignors), and LJH, as assignee,
providing for the purchase by LJH of the Restated and Amended Financing Agreement dated April 8,
2005 between the Company, certain of its subsidiaries named therein and Monroe Capital Advisors,
LLC as the Lender named therein,as amended, which on April 11, 2005 was assigned to Fortress
Credit Opportunities I LP (Fortress) (the Monroe/Fortress Facility), on the terms and
conditions stated therein, which terms include a cash payment to Fortress in respect of the
principal, accrued interest, fees and expenses of Fortress of an amount of approximately $18.4
million (the Monroe/Fortress Facility Purchase Price). The OC Investment Manager, on behalf of
some of the Owl Creek Investors, executed and delivered to LJH a Participation Agreement dated as
of April 10, 2006 (the Initial Participation Agreement) providing for the participation in the
Monroe/Fortress Facility by the OC Investment Manager, on behalf of some of the Owl Creek Investors
on the terms and conditions stated therein, and its agreement to fund 19.48% of the Monroe/Fortress
Facility Purchase Price. These transactions were funded and closed on April 10, 2006.
The Initial Transaction Agreement, Assignment and Acceptance and the Initial Participation
Agreement were filed as exhibits 99.2, 99.3 and 99.4 to Amendment No. 11 to the LJH Schedule 13D.
As a condition to LJHs performance of the Assignment and Acceptance, the Issuer and certain of its
subsidiaries executed and delivered to LJH a Ratification Agreement, which was filed as exhibit
99.3 to Amendment No. 11 to the LJH Schedule 13D (the Ratification Agreement), confirming the
validity of the Monroe/Fortress Facility and waiving and releasing claims against the Assignors and
against LJH with respect thereto, among other things. The Initial Transaction Agreement, Assignment
and Acceptance, the Participation Agreement and the Ratification Agreement are expressly
incorporated herein by reference and the descriptions set forth herein are qualified in their
entirety by reference to the full text of such agreements.
On April 20, 2006, LJH agreed with the Issuer to amend the Monroe/Fortress Facility to resolve
the defaults thereunder and provided an additional $6 million subordinated loan pursuant to a
Second Amendment to Amended and Restated Financing Agreement between the Issuer and LJH (the
Monroe/Fortress Facility Amendment) resolving all outstanding defaults, decreasing the interest
rate and fees under that facility and providing for the $6 million subordinated loan. Also on
April 20, 2006, LJH and the Owl Creek Investors executed Amendment No. 1 to the Initial
Participation Agreement (the Amended Owl Creek Participation), pursuant to which approximately
20% of the $6 million subordinated loan was funded by the OC Investment Manager. The Amended Owl
Creek Participation was filed as Exhibit 99.4 to Amendment No. 12 to the LJH Schedule 13D and is
incorporated by reference herein. The summary of the Amended Owl Creek Participation set forth
herein is qualified in its entirety by reference to the full text of the Amended Owl Creek
Participation. On April 20, 2006 LJH also entered into the related Intercreditor Agreement with
CIT. In response to these actions, CIT agreed to amend the terms of the CIT Facility pursuant to an
Amendment No. 4 to Financing Agreement between CIT as Agent and sole lender and the Issuer, which
has resolved certain existing events of default under the CIT Facility and increased the amount of
funding available under that facility.
As a condition to LJHs execution, delivery and performance of the Monroe/Fortress Facility
Amendment and the making of the $6 million subordinated loan, the Issuer and certain of its
subsidiaries executed and delivered to LJH a Ratification Agreement and Release dated April 20,
2006 (the Ratification and Release), confirming the validity of the Monroe/Fortress Facility and
waiving and releasing claims against LJH and its officers, directors, employees, attorneys,
representatives, parents, affiliates, predecessors, successors, or assigns, including the Owl Creek
Parties with respect to the Amended Owl Creek Participation. In the Ratification and Release, the
Issuer and its subsidiaries and LJH also exchanged mutual releases with respect to the suspended
discussions of the proposed merger of Newco and the Issuer, prior securities and lending
transactions and related matters. A copy of the Ratification and Release is filed as Exhibit 99.3
to Amendment No. 12 to the LJH Schedule 13D and is incorporated by reference herein. The summary of
the Ratification and Release set forth herein is qualified in its entirety by reference to the full
text of the Ratification and Release.
9
LJH and the Owl Creek Investors intend to enter into an amendment to the Transaction Agreement
pursuant to which they will agree to fund Newco with $10,006,524 from which to pay consideration in
the proposed Merger to stockholders of the Issuer, representing the product of $4 multiplied by the
number of issued and outstanding shares of Common Stock that are not owned by LJH or the Owl Creek
Investors, plus the number of shares of Common Stock that are issuable upon the exercise of
existing conversion rights by the holders of certain subordinated convertible PIK notes and holders
of warrants, options and stock grant rights, including the LJH Warrant referenced in Item 5. Of
this amount, LJH anticipates that it will contribute the sum of $8,057,252 (80.52%) and the Owl
Creek Investors will contribute the sum of $1,949,272.00 (19.48%).
It is expected that the ownership of the Newco common stock to be issued to LJH and the Owl
Creek Investors will be subject to a Stockholders Agreement that was executed and delivered in
connection with the Initial Transaction Agreement and which was attached to Amendment No. 11 to the
LJH Schedule 13D as Exhibit 99.6 (the Stockholders Agreement). The Stockholders Agreement
restricts the transfer of shares of Newco common stock and provides for certain other rights and
obligations set forth therein. The summary of the Stockholders Agreement set forth herein is
qualified by reference to the full text of the Stockholders Agreement. It is also expected that
LJH, the Owl Creek Investors and Newco will be parties to a Registration Rights Agreement dated as
of April 10, 2006 that was executed and delivered in connection with the Initial Transaction
Agreement and which was attached to Amendment No. 11 to the LJH Schedule 13D as Exhibit 99.7 (the
Registration Rights Agreement). The Registration Rights Agreement enumerates the parties rights
regarding registration of their Newco common stock and provides for certain other rights and
obligations set forth therein. The summary of the Registration Rights Agreement set forth herein is
qualified by reference to the full text of the Registration Rights Agreement.
LJH has engaged Mr. Cawthron to advise and represent LJH with respect to its investment in the
Issuer and in any discussions undertaken with respect to matters such as those described above at
Item 4. LJH has not authorized Mr. Cawthron to enter into binding agreements on its behalf. LJH may
compensate Mr. Cawthron from time to time for his actions on behalf of LJH relating to its
ownership of the Issuers securities upon such terms and conditions as they may agree. The Board of
Directors of the Issuer elected Mr. Cawthron as the Chief Executive Officer of the Company in April
2006 at the request of LJH.
The Transaction Agreement also provides that for a period of 180 days from the execution of
the Transaction Agreement, (i) if LJH determines to sell its shares of Common Stock to any person,
the Owl Creek Investors may elect to be included in that transaction, (ii) if either of the Owl
Creek Investors or LJH receives an offer to purchase their Common Stock, they will first offer it
to the other for purchase before they may sell it (iii) each party must consult with the other
prior to seeking a buyer of its shares of Common Stock and (iv) none of the Investors may engage in
transactions with the Issuer without the prior written consent of the other Investors.
Except as described in this Schedule 13D/A, there are no contracts, arrangements,
understandings or relationships (legal or otherwise) among the persons named in Item 2 hereof and
between such persons and any person with respect to any securities of the Issuer, including but not
limited to transfer or voting of any other securities, finders fees, joint ventures, loan or
option arrangements, puts or calls, guarantees of profits, divisions of profits or loss, or the
giving or withholding of proxies.
10
Item 7. Materials to be Filed as Exhibits
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Exhibit No. |
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Description of Exhibit |
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99.1
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Agreement regarding joint filing of Schedule 13D |
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99.2
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Amended and Restated Transaction Agreement dated as of
April 20, 2006, among LJH, Ltd., Owl Creek I, L.P., Owl
Creek II, L.P., Owl Creek Overseas Fund, Ltd. and Owl
Creek Overseas Fund II, Ltd. incorporated by reference to
Exhibit 99.2 to Amendment No. 12 to Schedule 13D filed
April 24, 2006 |
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99.3
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Transaction Agreement dated as of April 10, 2006, among
LJH, Ltd., Owl Creek I, L.P., Owl Creek II, L.P., Owl
Creek Overseas Fund, Ltd. and Owl Creek Overseas Fund II,
Ltd. incorporated by reference to Exhibit 99.2 to
Amendment No. 11 to Schedule 13D filed April 13, 2006 |
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99.4
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Assignment and Acceptance dated as of April 10, 2006,
among Monroe Capital Advisors, LLC, Fortress Credit
Opportunities I LP and Monroe Investments, Inc., as
assignors, and LJH, Ltd., as assignee incorporated by
reference to Exhibit 99.3 to Amendment No. 11 to Schedule
13D filed April 13, 2006 |
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99.5
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Participation Agreement dated as of April 10, 2006, among
LJH, Ltd., and Owl Creek Asset Management, L.P. as
assignee, incorporated by reference to Exhibit 99.4 to
Amendment No. 11 to Schedule 13D filed April 13, 2006 |
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99.6
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Amendment No. 1 to Participation Agreement dated as of
April 20, 2006, among LJH, Ltd. and Owl Creek Asset
Management L.L.C., incorporated by reference to Exhibit
99.4 to Amendment No. 12 to Schedule 13D filed April 24,
2006 |
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99.7
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Ratification Agreement and Release dated as of April 20,
2006 among LJH, TIMCO Aviation Services, Inc. and certain
of its subsidiaries., incorporated by reference to Exhibit
99.3 to Amendment No. 12 to Schedule 13D filed April 24,
2006 |
11
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, we certify that the
information set forth in this statement is true, complete and correct.
Dated:
June 29, 2006
LJH, Ltd.
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By: |
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DLH Management, L.L.C. |
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Its general partner |
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By:
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/s/ Lacy J. Harber |
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Lacy J. Harber, President |
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/s/ Lacy J. Harber
Lacy J. Harber |
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/s/ John R. Cawthron
John R. Cawthron |
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TAS Holding, Inc.
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By:
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/s/ John R. Cawthron
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John R. Cawthron, President |
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12
INDEX TO EXHIBITS
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Exhibit No. |
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Description of Exhibit |
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99.1
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Agreement regarding joint filing of Schedule 13D |
13