1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 35)
TRANSCONTINENTAL REALTY INVESTORS, INC.
--------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $0.01 per share
--------------------------------------------------------------------------------
(Title of Class of Securities)
893617-20-9
--------------------------------------------------------------------------------
(CUSIP Number)
Robert A. Waldman
1800 Valley View Lane, Suite 300
Dallas, Texas 75234
(469) 522-4200
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
April 9, 2001
--------------------------------------------------------------------------------
(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 Rules 13d-1(b)(3) or (4), check the following box [ ].
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 persons's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
2
CUSIP No. 893617-20-9
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
American Realty Trust, Inc., FEI No. 54-0697989
......................................................................
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ..................................................................
(b) .................................................................
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3) SEC Use Only .........................................................
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WC
4) Source of Funds (See Instructions) ...................................
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) .................................................
...............................................................................
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Georgia
6) Citizenship or Place of Organization ................................
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2,119,400
7) Sole Voting Power ..................................
Number of -------------------------------------------------------------
Shares Bene- -0-
ficially 8) Shared Voting Power ................................
Owned by -------------------------------------------------------------
Each Report- 2,119,400
ing Person 9) Sole Dispositive Power .............................
With
-------------------------------------------------------------
-0-
10) Shared Dispositive Power ...........................
-------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting 2,119,400
Person .............................................................
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) .................................................
...............................................................................
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24.5%
13) Percent of Class Represented by Amount in Row (11) ...................
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CO
14) Type of Reporting Person (See Instructions) ..........................
......................................................................
......................................................................
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3
CUSIP No. 893617-20-9
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
ART Holdings, Inc., FEI No. 75-2663476
......................................................................
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ..................................................................
(b) .................................................................
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3) SEC Use Only .........................................................
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WC
4) Source of Funds (See Instructions) ...................................
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) .................................................
...............................................................................
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Nevada
6) Citizenship or Place of Organization ................................
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16,000
7) Sole Voting Power ..................................
Number of -------------------------------------------------------------
Shares Bene- -0-
ficially 8) Shared Voting Power ................................
Owned by -------------------------------------------------------------
Each Report- 16,000
ing Person 9) Sole Dispositive Power .............................
With
-------------------------------------------------------------
-0-
10) Shared Dispositive Power ...........................
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16,000
11) Aggregate Amount Beneficially Owned by Each Reporting Person .........
-------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) .................................................
...............................................................................
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0.2%
13) Percent of Class Represented by Amount in Row (11) ...................
-------------------------------------------------------------------------------
CO
14) Type of Reporting Person (See Instructions) ..........................
......................................................................
......................................................................
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4
CUSIP No. 893617-20-9
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Basic Capital Management, Inc., FEI No. 75-2261065
......................................................................
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ..................................................................
(b) .................................................................
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3) SEC Use Only .........................................................
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WC
4) Source of Funds (See Instructions) ...................................
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) .................................................
...............................................................................
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Nevada
6) Citizenship or Place of Organization ................................
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1,163,676
7) Sole Voting Power ..................................
Number of -------------------------------------------------------------
Shares Bene- -0-
ficially 8) Shared Voting Power ................................
Owned by -------------------------------------------------------------
Each Report- 1,163,676
ing Person 9) Sole Dispositive Power .............................
With
-------------------------------------------------------------
-0-
10) Shared Dispositive Power ...........................
-------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting 1,163,676
Person ............................................................
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) ................................................
...............................................................................
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13.5%
13) Percent of Class Represented by Amount in Row (11) ...................
-------------------------------------------------------------------------------
CO
14) Type of Reporting Person (See Instructions) ..........................
......................................................................
......................................................................
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5
CUSIP No. 893517-20-9
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
The Gene E. Phillips Children's Trust, I.D. No. 13-6599759
......................................................................
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ..................................................................
(b) .................................................................
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3) SEC Use Only .........................................................
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N/A
4) Source of Funds (See Instructions) ...................................
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) .................................................
...............................................................................
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Texas
6) Citizenship or Place of Organization ................................
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1,827
7) Sole Voting Power ..................................
Number of -------------------------------------------------------------
Shares Bene- -0-
ficially 8) Shared Voting Power ................................
Owned by -------------------------------------------------------------
Each Report- 1,827
ing Person 9) Sole Dispositive Power .............................
With
-------------------------------------------------------------
-0-
10) Shared Dispositive Power ...........................
-------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting 1,827
Person .............................................................
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) .................................................
...............................................................................
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0.02%
13) Percent of Class Represented by Amount in Row (11) ...................
-------------------------------------------------------------------------------
OO
14) Type of Reporting Person (See Instructions) ..........................
......................................................................
......................................................................
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6
CUSIP No. 893617-20-9
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Syntek Asset Management, L.P., FEI No. 75-2311348
......................................................................
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ..................................................................
(b) .................................................................
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3) SEC Use Only .........................................................
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N/A
4) Source of Funds (See Instructions) ...................................
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) ................................................
...............................................................................
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Delaware
6) Citizenship or Place of Organization ................................
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26,475
7) Sole Voting Power ..................................
Number of -------------------------------------------------------------
Shares Bene- -0-
ficially 8) Shared Voting Power ................................
Owned by -------------------------------------------------------------
Each Report- 26,475
ing Person 9) Sole Dispositive Power .............................
With -------------------------------------------------------------
-0-
10) Shared Dispositive Power ...........................
-------------------------------------------------------------------------------
26,475
11) Aggregate Amount Beneficially Owned by Each Reporting Person .........
-------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) .................................................
...............................................................................
-------------------------------------------------------------------------------
0.3%
13) Percent of Class Represented by Amount in Row (11) ...................
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PN
14) Type of Reporting Person (See Instructions) ..........................
.................................................................
......................................................................
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CUSIP No. 893617-20-9
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Income Opportunity Realty Investors, Inc., FEI No. 75-2615944
......................................................................
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ..................................................................
(b) .................................................................
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3) SEC Use Only .........................................................
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WC
4) Source of Funds (See Instructions) ...................................
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5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) ................................................
...............................................................................
-------------------------------------------------------------------------------
Nevada
6) Citizenship or Place of Organization ................................
-------------------------------------------------------------------------------
-0-
7) Sole Voting Power ..................................
Number of -------------------------------------------------------------
Shares Bene- -0-
ficially 8) Shared Voting Power ................................
Owned by -------------------------------------------------------------
Each Report- -0-
ing Person 9) Sole Dispositive Power .............................
With -------------------------------------------------------------
-0-
10) Shared Dispositive Power ...........................
-------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting -0-
Person .............................................................
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) .................................................
...............................................................................
-------------------------------------------------------------------------------
-0-%
13) Percent of Class Represented by Amount in Row (11) ...................
-------------------------------------------------------------------------------
CO
14) Type of Reporting Person (See Instructions) ..........................
......................................................................
......................................................................
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CUSIP No. 893617-20-9
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
American Realty Investors, Inc., FEI No. 75-2847135
......................................................................
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ..................................................................
(b) .................................................................
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3) SEC Use Only .........................................................
-------------------------------------------------------------------------------
WC
4) Source of Funds (See Instructions) ...................................
-------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) .................................................
...............................................................................
-------------------------------------------------------------------------------
Nevada
6) Citizenship or Place of Organization ................................
-0-
7) Sole Voting Power ..................................
Number of -------------------------------------------------------------
Shares Bene- -0-
ficially 8) Shared Voting Power ................................
Owned by -------------------------------------------------------------
Each Report- -0-
ing Person 9) Sole Dispositive Power .............................
With -------------------------------------------------------------
-0-
10) Shared Dispositive Power ...........................
-------------------------------------------------------------------------------
-0-
11) Aggregate Amount Beneficially Owned by Each Reporting Person .........
-------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) .................................................
...............................................................................
-------------------------------------------------------------------------------
-0-%
13) Percent of Class Represented by Amount in Row (11) ...................
-------------------------------------------------------------------------------
CO
14) Type of Reporting Person (See Instructions) ..........................
......................................................................
......................................................................
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9
CUSIP No. 893617-20-9
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
EQK Holdings, Inc., FEI No. 75-Applied For
......................................................................
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ..................................................................
(b) .................................................................
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3) SEC Use Only .........................................................
-------------------------------------------------------------------------------
WC
4) Source of Funds (See Instructions) ...................................
-------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) .................................................
...............................................................................
-------------------------------------------------------------------------------
Nevada
6) Citizenship or Place of Organization ................................
-------------------------------------------------------------------------------
1,858,900
7) Sole Voting Power ..................................
Number of -------------------------------------------------------------
Shares Bene- -0-
ficially 8) Shared Voting Power ................................
Owned by -------------------------------------------------------------
Each Report- 1,858,900
ing Person 9) Sole Dispositive Power .............................
With -------------------------------------------------------------
-0-
10) Shared Dispositive Power ...........................
-------------------------------------------------------------------------------
-0-
11) Aggregate Amount Beneficially Owned by Each Reporting Person .........
-------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) ................................................
...............................................................................
-------------------------------------------------------------------------------
21.5%
13) Percent of Class Represented by Amount in Row (11) ...................
-------------------------------------------------------------------------------
CO
14) Type of Reporting Person (See Instructions) ..........................
......................................................................
......................................................................
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10
ITEM 1. SECURITY AND ISSUER
This Amendment No. 35 to Statement on Schedule 13D relates to the
shares of Common Stock, par value $0.01 per share (the "Shares") of
TRANSCONTINENTAL REALTY INVESTORS, INC., a Nevada corporation ("TCI" or
the"Issuer") and further amends the original Statement on Schedule 13D as
amended by Amendment Nos. 1 through 34 thereof (the "Amended Statement") filed
by and on behalf of the "Reporting Persons" described below. The principal
executive offices of TCI are located at 1800 Valley View Lane, Suite 300,
Dallas, Texas 75234. The CUSIP number of the Shares is 893617-20- 9.
This Amendment No. 35 to Schedule 13D is being filed due to an increase
in the total percentage of outstanding Shares owned by one of the Reporting
Persons through April 16, 2001, due to the exercise of a previously reported
option and the purchase of all shares covered thereof.
ITEM 2. IDENTITY AND BACKGROUND
Item 2 of the Amended Statement is hereby further amended as follows:
This Amendment is being filed on behalf of American Realty Trust, Inc.,
a Georgia corporation ("ART"), Basic Capital Management, Inc., a Nevada
corporation ("BCM"), ART Holdings, Inc., a Nevada corporation ("AHI"), The Gene
E. Phillips Children's Trust (the "GEP Trust"), Syntek Asset Management, L.P., a
Delaware limited partnership ("SAM LP"), Income Opportunity Realty Investors,
Inc., a Nevada corporation ("IORI"), American Realty Investors, Inc., a Nevada
corporation ("ARL") and EQK Holdings, Inc., a Nevada corporation ("EQK"), each
of which have their principal executive offices located at 1800 Valley View
Lane, Suite 300, Dallas, Texas 75234 from and after October 2, 2000. All of ART,
BCM, AHI, the GEP Trust, SAM LP, IORI, ARL and EQK are collectively referred to
as the "Reporting Persons." The Reporting Persons may be deemed to constitute a
"person" within the meaning of Section 13(d) of the Securities Exchange Act of
1934, as amended, because Gene E. Phillips is a general partner of SAM LP, BCM
is beneficially owned by a trust for the benefit of Mr. Phillips' children; BCM
serves as Advisor to IORI and ARL, and Mr. Phillips' son, Ryan T. Phillips,
serves as a director of BCM and is a beneficiary of the GEP Trust. AHI is a
wholly-owned subsidiary of ART and ART is a wholly-owned subsidiary of ARL. EQK
is a wholly-owned subsidiary of EQK Realty Investors, I, a Massachusetts Trust
of which ARL owns all of the shares of beneficial interest. On October 19, 2001,
IORI assigned all of its rights under the Option described in Item 6 below to
ARL and thereby ceased to be a "Reporting Person."
-1-
11
I. ART is a real estate investment company organized and existing as a
Georgia corporation engaged in the business of investing in and originating
mortgage loans and investing in real estate. On August 3, 2000, ART became a
wholly-owned subsidiary of ARL. ART's principal business activities include
investments in real estate and in other business ventures. The name, business
address and capacity with ART of each of the executive officers or directors of
ART are set forth on Schedule 1 attached hereto. Each of the individuals listed
on Schedule 1 is a citizen of the United States of America.
II. AHI is a corporation organized and existing under the laws of the
State of Nevada. AHI is a wholly-owned subsidiary of ART. AHI's principal
business activity is the holding of record ownership of Shares beneficially
owned by ART. The name, business address and capacity with AHI of each of the
executive officers or directors of AHI are set forth on Schedule 2 attached
hereto. Each of the individuals listed on Schedule 2 is a citizen of the United
States of America.
III. BCM is a corporation organized and existing under the laws of the
State of Nevada. BCM's principal business activity is the provision of advisory
services for real estate and investment trusts and other real estate entities.
The name, business address and capacity with BCM of each of the executive
officers or directors of BCM are set forth on Schedule 3 attached hereto. Each
of the individuals listed on Schedule 3 is a citizen of the United States of
America.
IV. SAM LP is a Delaware limited partnership engaged in the business of
investing in real estate and real estate related assets. SAM LP has no officers
or directors. The general partners of SAM LP are Gene E. Phillips and Syntek
Asset Management, Inc., a Texas corporation ("SAMI"). SAMI is a wholly-owned
subsidiary of BCM. SAMI's principal business activities include investment in
real estate and other business ventures. From and after October 2, 2000, SAMI's
principal place of business and principal office is located at 1800 Valley View
Lane, Suite 300, Dallas, Texas 75234. The name, business address and capacity
with SAMI of each of the executive officers or directors of SAMI are set forth
on Schedule 4 attached hereto. Each of the individuals listed on Schedule 4 is a
citizen of the United States of America.
Mr. Gene E. Phillips' business address is 1800 Valley View Lane,
Suite 300, Dallas, Texas 75234. Mr. Gene E. Phillips' present principal
occupation is Chief Executive Officer and President of Syntek West, Inc. Mr.
Gene E. Phillips is a citizen of the United States of America.
V. The GEP Trust is a trust formed under the laws of the state of Texas
for the benefit of the children of Mr. Gene E.
-2-
12
Phillips. The trustee of the GEP Trust is Mr. Gene E. Phillips' brother, Donald
W. Phillips. Donald W. Phillips' business address is 1800 Valley View Lane,
Suite 160, Dallas, Texas 75234. Mr. Donald W. Phillips present principal
occupation is President and owner of Big D Oil Field Equipment Sales. Mr. Donald
W. Phillips is a citizen of the United States of America.
VI. IORI is a corporation organized and existing under the laws of the
State of Nevada engaged in the business of investing in and originating mortgage
loans and investing in real estate and real estate related assets. IORI is a
real estate investment trust. The name, business address and capacity with IORI
of each of the executive officers or directors of IORI are set forth on Schedule
5 attached hereto. Each of the individuals listed on Schedule 5 is a citizen of
the United States of America.
VII. ARL is a Nevada corporation, formed pursuant to the terms of an
Agreement and Plan of Reorganization dated November 3, 1999, among ARL, National
Realty, L.P., a Delaware limited partnership ("NRLP") and ART. Consolidation was
effectuated following a vote of the security holders of NRLP and ART by closing
on August 3, 2000, of separate mergers of ART and NRLP with and into wholly-
owned subsidiaries of ARL with the result that ART and NRLP became wholly-owned
subsidiaries of ARL with the securities of ART and NRLP converted into
securities of ARL. ART and NRLP each continue business operations as
wholly-owned subsidiaries of ARL. ARL's outstanding securities are listed and
traded on the New York Stock Exchange ("NYSE"). The name, business address and
capacity with ARL of each of the executive officers or directors of ARL are set
forth on Schedule 6 attached hereto. Each of the individuals listed on Schedule
6 is a citizen of the United States of America.
VIII. EQK is a corporation organized and existing under the laws of the
State of Nevada. EQK is an indirect subsidiary of ARL and was formed to own and
hold the 1,858,900 Shares of TCI Common Stock purchased from Gotham by exercise
of the Option described in Items 5 and 6 below. The name, business address and
capacity with EQK of each of the executive officers or directors of EQK are set
forth on Schedule 7 attached hereto. Each of the individuals listed on Schedule
7 is a citizen of the United States of America.
Individuals whose names are not listed on Schedules 1, 2, 3, 4, 5 or 6
who may have previously been referred to as executive officers or directors of
ART, AHI, BCM, SAMI, IORI or ARL, respectively in Amendment No. 34 to Schedule
13D no longer occupy those positions, each having resigned or been removed prior
to the date of this Amendment.
(d) During the last five years, none of ART, BCM, AHI, SAM LP, the GEP
Trust, IORI, ARL or EQK, nor any of their respective executive officers or
directors, general partners or trustees has
-3-
13
been convicted in a criminal proceeding (excluding traffic violations and/or
similar misdemeanors).
(e) During the last five years, none of ART, BCM, AHI, SAM LP, the GEP
Trust, IORI, ARL, or EQK, nor any of their respective executive officers or
directors, general partners or trustees has been a party to any civil proceeding
of a judicial or administrative body of competent jurisdiction which resulted in
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.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The consideration paid to purchase the Shares described in Item 5 below
is from working capital of each of the Reporting Persons and no part of the
purchase price is represented by funds or other consideration borrowed or
otherwise obtained for the purpose of acquiring, holding, trading or voting the
Shares. Each of the Reporting Persons have in the past and may in the future,
utilized margin accounts with various brokerage firms which accounts may, from
time to time, have debit balances and include certain of the Shares. Since other
securities are held in such accounts, it may be impracticable at any time to
determine the amounts, if any, borrowed with respect to the Shares and interest
costs vary with applicable costs and account balances.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Item 5 of the Amended Statement is hereby further amended as follows:
(a) According to the latest information available from the Issuer, as
of April 9, 2001, the total number of issued and outstanding Shares was
8,636,354 Shares. As of April 16, 2001, the following Shares were owned directly
and beneficially by the Reporting Persons set forth below:
Name No. of Units Owned Directly Approximate % Class
---- --------------------------- -------------------
ART 2,119,400 24.5%
BCM 1,163,676 13.5%
AHI 16,000 0.2%
GEP Trust 1,827 0.002%
SAM LP 26,475 0.3%
IORI -0- -0-
ARL -0- -0-
EQK 1,858,900 21.5%
--------- -----
Totals: 5,174,878 59.92%
========= =====
Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934 (the
"Exchange Act"), each of the directors of ART may be
-4-
14
deemed to beneficially own the number of Shares owned by ART described above;
each of the directors of BCM may be deemed to beneficially own the Shares held
directly by BCM; each of the directors of SAMI and the other General Partner of
SAM LP may be deemed to beneficially own the Shares held by SAM LP; each of the
directors of AHI may be deemed to beneficially own the Shares held directly by
AHI; and each of the directors of EQK may be deemed to beneficially own the
Shares held directly by EQK. Those individuals and the number of Shares deemed
beneficially owned pursuant to Rule 13d-3, and the approximate percent of the
class, as well as the relationship, are set forth in the following table:
Name of Director or No. of Shares % of
General Partner Entity Beneficially Owned Class
--------------- ------ ------------------ -----
Karl L. Blaha ART, AHI 3,994,300 46.3%
and EQK
Ryan T. Phillips BCM(a) 1,165,503 13.5%
Mickey Ned Phillips BCM 1,163,676 13.5%
Donald W. Phillips GEP Trust 1,827 0.002%
Gene E. Phillips SAM LP 26,475 0.3%
SAMI SAM LP 26,475 0.3%
Robert A. Waldman AHI and EQK 1,874,900 21.7%
--------- -----
Total Units beneficially 5,174,878 59.92%
owned by Reporting Persons ========= =====
and individuals listed above:
-------------------
(a) Also beneficiary of the GEP Trust
(b) Each of the directors of ART share voting and dispositive power
over the 2,119,400 Shares held by ART. The directors of BCM have shared voting
and dispositive power over the 1,163,676 Shares held by BCM. Each of the
directors of AHI share voting and dispositive power over the 16,000 Shares held
by AHI. Each of the directors of EQK share voting and dispositive power over the
1,858,900 Shares held by EQK. The two General Partners of SAM LP each have
shared voting and dispositive power over the 26,475 Shares by SAM LP. The
Trustee of the GEP Trust has the sole voting and dispositive power over the
1,827 Shares held by the GEP Trust.
(c) On October 3, 2000, pursuant to a Stock Option Agreement dated
October 3, 2000, Gotham Partners, LP and Gotham Partners III, LP (both New York
limited partnerships) and Gotham Partners International, Ltd., a Canadian Island
company (all collectively "Gotham") granted to ARL and IORI, jointly, an Option
to purchase 1,858,900 Shares of TCI Common Stock (the "Option") at an exercise
price of $12 per share (a total price of $22,306,800). Such Option became
exercisable on January 1, 2001 through 5:00 p.m., central standard time on April
4, 2001 (the "Option Period") and was only to be exercised as to the whole of
such Option (not in part). As a fee for the Option, ARL and IORI paid to Gotham
an initial Option
-5-
15
Fee of $5,576,700 ($3 per Share) at the time of execution of the Option
Agreement and were obligated to pay Gotham on or before December 15, 2000, the
remaining portion of the Option Fee of $2,788,350 ($1.50 per Share), which was
not paid but became an obligation payable at the time of exercise of such
Option. On October 19, 2000, IORI assigned all of its right, title and interest
in and to the Option Agreement to ARL. On April 4, 2001, ARL gave notice of
exercise of the Option in accordance with the terms of the Option Agreement and
paid to Gotham in cash the balance of the Option Fee of $2,788,350; within three
business days thereafter, Gotham delivered the 1,858,900 Shares of TCI Common
Stock to a brokerage account of EQK, and ARL paid the full exercise price of
$22,306,800 into EQK's brokerage account which was then paid to Gotham.
Except for the transaction described above, the Reporting Persons and
their executive officers, directors, partners and trustees, as the case may be,
did not engage in any transaction in the Shares or any other equity interest
derivative thereof during the sixty (60) calendar day period ending April 16,
2001.
(d) No person other than the Reporting Persons or its respective Board
of Directors, General Partners or Trustee is known to have the right to receive
or the power to direct receipt of dividends from, or the proceeds of sale of,
the Shares held by each of the Reporting Persons, subject to the matters set
forth in Item 6 below.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
Item 6 of the Amended Statement is hereby further amended to read as
follows:
ART has pledged 152,212 Shares to United Pacific Bank pursuant to a
loan agreement with such lender. ART has also pledged 249,191 Shares to
Preferred Bank pursuant to a loan agreement with such lender. ART has pledged
867,978 Shares to Dynamic Finance Corporation as collateral for a guaranty of
indebtedness of an affiliate of ART under a loan agreement with such lender. The
remaining 850,019 Shares owned by ART may be deemed to be "collateral" for
borrowings pursuant to margin or other account arrangements with banks and
brokerage firms relating to accounts of ART. Such arrangements are standard
arrangements involving margin securities of up to a specified percentage of the
market value of the Shares and bear interest at varying rates and contain only
standard default and similar provisions, the operation of any of which should
not give any other person immediate voting power or investment power over such
securities. Such arrangements exist
-6-
16
with the Shares and other securities held in such accounts, and it is
impracticable at any given time to determine the amounts, if any, with respect
to the Shares and interest costs under such arrangements vary with applicable
costs and account balances.
BCM has pledged 898,207 Shares to Consolidated National Corp. pursuant
to a loan agreement with such lender. BCM has also pledged 48,711 Shares to
Dynamic Finance Corporation as collateral for a guaranty of indebtedness of an
affiliate of BCM under a loan agreement with such lender. The remaining 216,758
Shares owned by BCM may be deemed to be "collateral" for borrowings pursuant to
margin or other account arrangements with bankers and brokerage firms relating
to accounts of BCM. Such arrangements are standard arrangements involving margin
securities of up to a specified percentage of the market value of the Shares and
bear interest at varying rates and contain only standard default and similar
provisions, the operation of any of which should not give any other person
immediate voting power or investment power over such securities. Such
arrangements exist with the Shares and other securities held in such accounts,
and it is impracticable at any given time to determine the amounts, if any, with
respect to the Shares and interest costs under such arrangements vary with
applicable costs and account balances.
All 16,000 Shares owned by AHI may be deemed to be "collateral" for
borrowings pursuant to margin or other account arrangements with a brokerage
firm relating to an account of AHI. Such arrangements with such brokerage firm
is a standard arrangement involving margin securities of up to a specified
percentage of the market value of the Shares, as well as other securities in
such account, and bears interest at varying rates and contains only standard
default and similar provisions, the operation of which should not give any other
person immediate voting power or investment power over the 16,000 Shares.
All 26,475 Shares owned by SAM LP may be deemed to be "collateral" for
borrowings pursuant to margin or other account arrangements with Bear Stearns
relating to an account of SAM LP. Such arrangement with such brokerage firm is a
standard arrangement involving margin securities of up to a specified percentage
of the market value of all securities in such account, including the Shares, and
bears interest at varying rates and contains only standard default and similar
provisions, the operation of which should not give any other person immediate
voting power or investment power over such securities.
All 1,827 Shares owned by the GEP Trust may be deemed to be
"collateral" for borrowings pursuant to margin or other account arrangements
with a brokerage firm relating to an account of the GEP Trust. Such arrangements
are standard arrangements involving margin securities of up to a specified
percentage of the market
-7-
17
value of the Shares and bear interest at varying rates and contain only standard
default and similar provisions, the operation of any of which should not give
any other person immediate voting power or investment power over such
securities. Such arrangements exist with the Shares and other securities held in
such account, and it is impracticable at any given time to determine the amount,
if any, with respect to the Shares and interest cost under such arrangements
vary with applicable costs and account balances.
See Item 5(c) above with respect to the exercise of an Option under an
Option Agreement by ARL and various matters relating to Gotham as the seller of
such securities. Pursuant to the original Option Agreement, Gotham agreed to a
"standstill" for a period of two years from the date of the Option Agreement and
agreed not to purchase directly or indirectly any security issued by ARL, TCI or
IORI, provided, however, the standstill was to terminate if the additional
Option Fee was not made or paid on or before December 15, 2000, or if the Option
was not exercised prior to April 4, 2001. Such Option was exercised prior to
April 4, 2001, and the additional Option Fee was paid. Gotham had also executed
a proxy covering the Shares (a total of 1,858,900 Shares) in favor of ARL to
attend to the Annual Meeting of Stockholders of TCI on October 10, 2000, to
represent, vote, execute consents and otherwise act for Gotham only in approving
the four proposals set forth in TCI's Proxy Statement for such Annual Meeting
dated December 11, 2000. No other agreement or arrangement exists among Gotham
and ARL and IORI with respect to any securities of TCI or the giving or
withholding of proxies.
Except as set forth in the preceding paragraphs, the Reporting Persons
do not have any contracts, arrangements, understandings or relationships (legal
or otherwise) with any person with respect to any securities of the Issuer
including finder's fees, joint ventures, loan or option arrangements, puts or
calls, guaranties of profits, division of profits or loss, or the giving or
withholding of proxies.
-8-
18
SIGNATURES
After reasonable inquiry and to the best of their respective knowledge
and belief, the undersigned certify that the information set forth in this
Amendment No. 35 to Statement on Schedule 13D is true, complete and correct.
Dated: April 16, 2001.
SYNTEK ASSET MANAGEMENT, LP, a AMERICAN REALTY INVESTORS, INC.
Delaware limited partnership
By: Syntek Asset Management,
Inc., General Partner By: /s/ Karl L. Blaha
-----------------------------
Karl L. Blaha, President
By: /s/ Karl L. Blaha
------------------------------
Karl L. Blaha, President
AMERICAN REALTY TRUST, INC. BASIC CAPITAL MANAGEMENT, INC.
By: /s/ Karl L. Blaha By: /s/ Karl L. Blaha
------------------------------- ------------------------------
Karl L. Blaha, President Karl L. Blaha, President
INCOME OPPORTUNITY REALTY ART HOLDINGS, INC.
INVESTORS, INC.
By: /s/ Karl L. Blaha By: /s/ Karl L. Blaha
------------------------------- ------------------------------
Karl L. Blaha, President Karl L. Blaha, President
EQK HOLDINGS, INC. THE GENE E. PHILLIPS CHILDREN'S
TRUST
By: /s/ Karl L. Blaha By: /s/ Donald W. Phillips,
------------------------------- ------------------------------
Karl L. Blaha, President Donald W. Phillips,
Trustee
-9-
19
SCHEDULE 1
EXECUTIVE OFFICERS AND DIRECTORS OF
AMERICAN REALTY TRUST, INC.
PRESENT BUSINESS IN
NAME AND CAPACITY WITH WHICH EMPLOYMENT IS
AMERICAN REALTY TRUST, INC. BUSINESS ADDRESS CONDUCTED
Karl L. Blaha, Director, 1800 Valley View Lane President, Basic
Chief Executive Officer and Suite 300 Capital Management,
President Dallas, Texas 75234 Inc.
Mark W. Branigan, Executive 1800 Valley View Lane Executive Vice
Vice President and Chief Suite 300 President, Basic
Financial Officer Dallas, Texas 75234 Capital Management,
Inc.
Bruce A. Endendyk, 1800 Valley View Lane Executive Vice
Executive Vice President Suite 300 President, Basic
Dallas, Texas 75234 Capital Management,
Inc.
David W. Starowicz, 1800 Valley View Lane Executive Vice
Executive Vice President - Suite 300 President, Basic
Commercial Asset Management Dallas, Texas 75234 Capital Management,
Inc.
Robert A. Waldman, Senior 1800 Valley View Lane Senior Vice President,
Vice President, Secretary Suite 300 General Counsel and
and General Counsel Dallas, Texas 75234 Secretary, Basic
Capital Management,
Inc.
Kelly Stracener, Treasurer 1800 Valley View Lane Treasurer, Basic
Suite 300 Capital Management,
Dallas, Texas 75234 Inc.
20
SCHEDULE 2
EXECUTIVE OFFICERS AND DIRECTORS OF
ART HOLDINGS, INC.
PRESENT BUSINESS IN
NAME AND CAPACITY WITH WHICH EMPLOYMENT IS
ART HOLDINGS, INC. BUSINESS ADDRESS CONDUCTED
Karl L. Blaha, President 1800 Valley View Lane President, Basic Capital
and Director Suite 300 Management, Inc.
Dallas, Texas 75234
Robert A. Waldman, 1800 Valley View Lane Senior Vice President,
Director and Secretary Suite 300 General Counsel and
Dallas, Texas 75234 Secretary, Basic Capital
Management, Inc.
Mark W. Branigan, Vice 1800 Valley View Lane Executive Vice President
President and Chief Suite 300 and Chief Financial
Financial Officer Dallas, Texas 75234 Officer, Basic Capital
Management, Inc.
Kelly Stracener, 1800 Valley View Lane Treasurer, Basic Capital
Treasurer Suite 300 Management, Inc.
Dallas, Texas 75234
21
SCHEDULE 3
EXECUTIVE OFFICERS AND DIRECTORS OF
BASIC CAPITAL MANAGEMENT, INC.
NAME AND CAPACITY WITH PRESENT BUSINESS IN
BASIC CAPITAL WHICH EMPLOYMENT IS
MANAGEMENT, INC. BUSINESS ADDRESS CONDUCTED
Ryan T. Phillips, 1800 Valley View Lane President, Signature
Director Suite 300 Asset Management, Inc.
Dallas, Texas 75234
Mickey Ned Phillips, 264 Rolling Hills Circle President, Ned Phillips
Director Gaffney, SC 29340 Construction Company
Karl L. Blaha, President 1800 Valley View Lane President, Basic Capital
Suite 300 Management, Inc.
Dallas, Texas 75234
Mark W. Branigan, 1800 Valley View Lane Executive Vice
Executive Vice President Suite 300 President, Basic Capital
and Chief Financial Dallas, Texas 75234 Management, Inc.
Officer
Bruce A. Endendyk, 1800 Valley View Lane Executive Vice
Executive Vice President Suite 300 President, Basic Capital
Dallas, Texas 75234 Management, Inc.
David W. Starowicz, 1800 Valley View Lane Executive Vice
Executive Vice President Suite 300 President, Basic Capital
- Acquisition, Sales and Dallas, Texas 75234 Management, Inc.
Construction
Rick Conley, Executive 1800 Valley View Lane Executive Vice
Vice President - Suite 300 President, Basic Capital
Marketing and Promotions Dallas, Texas 75234 Management, Inc.
Robert A. Waldman, 1800 Valley View Lane Senior Vice President,
Senior Vice President, Suite 300 General Counsel and
Secretary and General Dallas, Texas 75234 Secretary, Basic Capital
Counsel Management, Inc.
Kelly Stracener, 1800 Valley View Lane Treasurer, Basic Capital
Treasurer Suite 300 Management, Inc.
Dallas, Texas 75234
22
SCHEDULE 4
EXECUTIVE OFFICERS AND DIRECTORS OF
SYNTEK ASSET MANAGEMENT, INC.
NAME AND CAPACITY WITH PRESENT BUSINESS IN
SYNTEK ASSET WHICH EMPLOYMENT IS
MANAGEMENT, INC. BUSINESS ADDRESS CONDUCTED
Karl L. Blaha, President 1800 Valley View Lane President, Basic Capital
Suite 300 Management, Inc.
Dallas, Texas 75234
Mark W. Branigan, 1800 Valley View Lane Executive Vice
Executive Vice President Suite 300 President, Basic Capital
and Chief Financial Dallas, Texas 75234 Management, Inc.
Officer
Bruce A. Endendyk, 1800 Valley View Lane Executive Vice
Executive Vice President Suite 300 President, Basic Capital
Dallas, Texas 75234 Management, Inc.
David W. Starowicz, 1800 Valley View Lane Executive Vice
Executive Vice President Suite 300 President, Basic Capital
- Acquisitions, Sales Dallas, Texas 75234 Management, Inc.
and Construction
Robert A. Waldman, 1800 Valley View Lane Senior Vice President,
Senior Vice President, Suite 300 General Counsel and
Secretary and General Dallas, Texas 75234 Secretary, Basic Capital
Counsel Management, Inc.
Kelly Stracener, 1800 Valley View Lane Treasurer, Basic Capital
Treasurer Suite 300 Management, Inc.
Dallas, Texas 75234
23
SCHEDULE 5
EXECUTIVE OFFICERS AND DIRECTORS OF
INCOME OPPORTUNITY REALTY INVESTORS, INC.
NAME AND CAPACITY WITH
INCOME OPPORTUNITY REALTY PRESENT BUSINESS IN WHICH
INVESTORS, INC. BUSINESS ADDRESS EMPLOYMENT IS CONDUCTED
Ted P. Stokely, Chairman 1800 Valley View Lane General Manager, Minority
of the Board of Directors Suite 160 and Elderly Housing
Dallas, Texas 75234 Assistance Foundation,
Inc.
R. Douglas Leonhard, 13230 Hunters Lark Retired.
Director San Antonio, Texas 78230
Martin L. White, Director 8051 Coach Drive Chairman of the Board and
Oakland, California 94605 Chief Executive Officer of
Community Based
Developers, Inc.
Edward G. Zampa No. Fifty Osgood Place General Partner, Edward G.
Suite 110 Zampa & Company
San Francisco, California
94133
Karl L. Blaha, President 1800 Valley View Lane President, Basic Capital
Suite 300 Management, Inc.
Dallas, Texas 75234
Mark W. Branigan, 1800 Valley View Lane Executive Vice President,
Executive Vice President Suite 300 Basic Capital Management,
and Chief Financial Dallas, Texas 75234 Inc.
Officer
Bruce A. Endendyk, 1800 Valley View Lane Executive Vice President,
Executive Vice President Suite 300 Basic Capital Management,
Dallas, Texas 75234 Inc.
David W. Starowicz, 1800 Valley View Lane Executive Vice President,
Executive Vice President - Suite 300 Basic Capital Management,
Acquisitions, Sales and Dallas, Texas 75234 Inc.
Construction
Robert A. Waldman, Senior 1800 Valley View Lane Senior Vice President,
Vice President, Secretary Suite 300 General Counsel and
and General Counsel Dallas, Texas 75234 Secretary, Basic Capital
Management, Inc.
Kelly Stracener, Treasurer 1800 Valley View Lane Treasurer, Basic Capital
Suite 300 Management, Inc.
Dallas, Texas 75234
24
SCHEDULE 6
EXECUTIVE OFFICERS AND DIRECTORS OF
AMERICAN REALTY INVESTORS, INC.
NAME AND CAPACITY WITH
AMERICAN REALTY PRESENT BUSINESS IN WHICH
INVESTORS, INC. BUSINESS ADDRESS EMPLOYMENT IS CONDUCTED
Karl L. Blaha, Director and 1800 Valley View Lane President, Basic Capital
President Suite 300 Management, Inc.
Dallas, Texas 75234
Roy E. Bode, Director 2435 E. F.M. 879 Vice President for Public
Palmer, Texas 75152 Affairs, University of
Texas Southwestern
Medical Center at Dallas
Collene C. Currie, Director 6617 Ridgeview Circle Assistant Director,
Dallas, Texas 75240 Cambridge Technology
Partners (CATP:NASDAQ)
Cliff Harris, Director 2838 Woodside Street President, Energy
Dallas, Texas 75204 Transfer Group, L.L.C.
Joseph Mizrachi, Director 6971 North Federal Hwy. President, PAZ
Suite 203 Securities, Inc. and
Boca Raton, Florida 33487 Chairman of the Board,
Third Millennium
Properties, Inc.
Richard D. Morgan, Director 5910 North Central President, Tara Group,
Expressway Inc.
Dallas, Texas 75206
Mark W. Branigan, Director, 1800 Valley View Lane Executive Vice President,
Executive Vice President Suite 300 Basic Capital Management,
and Chief Financial Officer Dallas, Texas 75234 Inc.
Bruce A. Endendyk, 1800 Valley View Lane Executive Vice President,
Executive Vice President Suite 300 Basic Capital Management,
Dallas, Texas 75234 Inc.
David W. Starowicz, 1800 Valley View Lane Executive Vice President,
Executive Vice President - Suite 300 Basic Capital Management,
Acquisitions, Sales and Dallas, Texas 75234 Inc.
Construction
Robert A. Waldman, Senior 1800 Valley View Lane Senior Vice President,
Vice President, Secretary Suite 300 General Counsel and
and General Counsel Dallas, Texas 75234 Secretary, Basic Capital
Management, Inc.
Kelly Stracener, Treasurer 1800 Valley View Lane Treasurer, Basic Capital
Suite 300 Management, Inc.
Dallas, Texas 75234
25
SCHEDULE 7
EXECUTIVE OFFICERS AND DIRECTORS OF
EQK HOLDINGS, INC.
PRESENT BUSINESS IN
NAME AND CAPACITY WITH WHICH EMPLOYMENT IS
EQK HOLDINGS, INC. BUSINESS ADDRESS CONDUCTED
Karl L. Blaha, President 1800 Valley View Lane President, Basic Capital
and Director Suite 300 Management, Inc.
Dallas, Texas 75234
Robert A. Waldman, 1800 Valley View Lane Senior Vice President,
Director and Secretary Suite 300 General Counsel and
Dallas, Texas 75234 Secretary, Basic Capital
Management, Inc.
Mark W. Branigan, Vice 1800 Valley View Lane Executive Vice President
President and Chief Suite 300 and Chief Financial
Financial Officer Dallas, Texas 75234 Officer, Basic Capital
Management, Inc.
Kelly Stracener, 1800 Valley View Lane Treasurer, Basic Capital
Treasurer Suite 300 Management, Inc.
Dallas, Texas 75234