-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JR8UO4cSxr+K3gQTxgC/tB+aOwi6IWiPre+JNa91ra+i1wMGppt508huMBtFmBHa hKaZusB3BcHHZUAXDR5ljg== 0000902664-08-003056.txt : 20081022 0000902664-08-003056.hdr.sgml : 20081022 20081022164334 ACCESSION NUMBER: 0000902664-08-003056 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20081022 DATE AS OF CHANGE: 20081022 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: PNG VENTURES INC CENTRAL INDEX KEY: 0001016900 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 880350286 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-84091 FILM NUMBER: 081135588 BUSINESS ADDRESS: STREET 1: 2038 CORTE DEL NOGAL STREET 2: SUITE 110 CITY: CARLSBAD STATE: CA ZIP: 92011 BUSINESS PHONE: (760) 230-2300 MAIL ADDRESS: STREET 1: 2038 CORTE DEL NOGAL STREET 2: SUITE 110 CITY: CARLSBAD STATE: CA ZIP: 92011 FORMER COMPANY: FORMER CONFORMED NAME: PAPER COMPUTER CORP DATE OF NAME CHANGE: 20000509 FORMER COMPANY: FORMER CONFORMED NAME: PNG VENTURES INC/CA DATE OF NAME CHANGE: 20000229 FORMER COMPANY: FORMER CONFORMED NAME: TELECOMMUNICATIONS TECHNOLOGIES LTD DATE OF NAME CHANGE: 20000229 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SANDELL ASSET MANAGEMENT CORP CENTRAL INDEX KEY: 0001140474 IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 40 WEST 57TH STREET STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2126035700 MAIL ADDRESS: STREET 1: 40 WEST 57TH STREET STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 SC 13D/A 1 p08-1510sc13da.txt PNG VENTURES INC. OMB APPROVAL UNITED STATES OMB Number: 3235-0145 SECURITIES AND EXCHANGE COMMISSION Expires: February 29, 2009 Washington, D.C. 20549 Estimated average burden hours per response. . . . . . . 14.5 ------------- SCHEDULE 13D/A (Rule 13d-102) (Amendment No. 3) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) Under the Securities Exchange Act of 1934 PNG Ventures, Inc. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock - -------------------------------------------------------------------------------- (Title of Class of Securities) 69350G303 - -------------------------------------------------------------------------------- (CUSIP Number) Sandell Asset Management Corp. 40 West 57th Street 26th Floor New York, NY 10019 Attention: Richard Gashler, General Counsel 212-603-5700 With a Copy to: Eleazer Klein, Esq. Schulte Roth & Zabel LLP 919 Third Avenue New York, NY 10019 212-756-2000 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) October 17, 2008 ------------------ (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 Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box [ ]. Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 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 person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover 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). (Continued on following pages) (Page 1 of 10 Pages) - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 2 of 10 Pages - ---------------------------- ---------------------------- - ------------- ----------------------------------------------------------------- 1 NAME OF REPORTING PERSON Castlerigg PNG Investments LLC - ------------- ----------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - ------------- ----------------------------------------------------------------- 3 SEC USE ONLY - ------------- ----------------------------------------------------------------- 4 SOURCE OF FUNDS AF - ------------- ----------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) |_| - ------------- ----------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - ------------- ----------------------------------------------------------------- 7 SOLE VOTING POWER 0 ----------- ----------------------------------------------------- 8 SHARED VOTING POWER NUMBER OF 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes SHARES the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior BENEFICIALLY Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth OWNED Biofuels, Inc.) (See Item 4 below) BY EACH $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 REPORTING shares of Common Stock (See Item 4 below) PERSON $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible WITH into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) ----------- ----------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 ----------- ----------------------------------------------------- 10 SHARED DISPOSITIVE POWER $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc. (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------- ----------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc.) (See Item 4 below) $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - ------------- ----------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 66.86% (See Item 4 below) - ------------- ----------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - ------------- ----------------------------------------------------------------- - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 3 of 10 Pages - ---------------------------- ---------------------------- - ------------- ----------------------------------------------------------------- 1 NAME OF REPORTING PERSON Castlerigg Master Investments Ltd. - ------------- ----------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - ------------- ----------------------------------------------------------------- 3 SEC USE ONLY - ------------- ----------------------------------------------------------------- 4 SOURCE OF FUNDS WC - ------------- ----------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) |_| - ------------- ----------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION British Virgin Islands - ------------- ----------------------------------------------------------------- 7 SOLE VOTING POWER 0 ----------- ----------------------------------------------------- 8 SHARED VOTING POWER NUMBER OF 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes SHARES the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior BENEFICIALLY Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth OWNED Biofuels, Inc.) (See Item 4 below) BY EACH $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 REPORTING shares of Common Stock (See Item 4 below) PERSON $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible WITH into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) ----------- ----------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 ----------- ----------------------------------------------------- 10 SHARED DISPOSITIVE POWER $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc. (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------- ----------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc.) (See Item 4 below) $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - ------------- ----------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 66.86% (See Item 4 below) - ------------- ----------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - ------------- ----------------------------------------------------------------- - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 4 of 10 Pages - ---------------------------- ---------------------------- - ------------- ----------------------------------------------------------------- 1 NAME OF REPORTING PERSON Sandell Asset Management Corp. - ------------- ----------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - ------------- ----------------------------------------------------------------- 3 SEC USE ONLY - ------------- ----------------------------------------------------------------- 4 SOURCE OF FUNDS AF - ------------- ----------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) |_| - ------------- ----------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - ------------- ----------------------------------------------------------------- 7 SOLE VOTING POWER 0 ----------- ----------------------------------------------------- 8 SHARED VOTING POWER NUMBER OF 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes SHARES the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior BENEFICIALLY Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth OWNED Biofuels, Inc.) (See Item 4 below) BY EACH $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 REPORTING shares of Common Stock (See Item 4 below) PERSON $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible WITH into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) ----------- ----------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 ----------- ----------------------------------------------------- 10 SHARED DISPOSITIVE POWER $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc. (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------- ----------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc.) (See Item 4 below) $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - ------------- ----------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 66.86% (See Item 4 below) - ------------- ----------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - ------------- ----------------------------------------------------------------- - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 5 of 10 Pages - ---------------------------- ---------------------------- - ------------- ----------------------------------------------------------------- 1 NAME OF REPORTING PERSON Castlerigg International Limited - ------------- ----------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - ------------- ----------------------------------------------------------------- 3 SEC USE ONLY - ------------- ----------------------------------------------------------------- 4 SOURCE OF FUNDS AF - ------------- ----------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) |_| - ------------- ----------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION British Virgin Islands - ------------- ----------------------------------------------------------------- 7 SOLE VOTING POWER 0 ----------- ----------------------------------------------------- 8 SHARED VOTING POWER NUMBER OF 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes SHARES the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior BENEFICIALLY Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth OWNED Biofuels, Inc.) (See Item 4 below) BY EACH $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 REPORTING shares of Common Stock (See Item 4 below) PERSON $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible WITH into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) ----------- ----------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 ----------- ----------------------------------------------------- 10 SHARED DISPOSITIVE POWER $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc. (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------- ----------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc.) (See Item 4 below) $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - ------------- ----------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 66.86% (See Item 4 below) - ------------- ----------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - ------------- ----------------------------------------------------------------- - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 6 of 10 Pages - ---------------------------- ---------------------------- - ------------- ----------------------------------------------------------------- 1 NAME OF REPORTING PERSON Castlerigg International Holdings Limited - ------------- ----------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - ------------- ----------------------------------------------------------------- 3 SEC USE ONLY - ------------- ----------------------------------------------------------------- 4 SOURCE OF FUNDS AF - ------------- ----------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) |_| - ------------- ----------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION British Virgin Islands - ------------- ----------------------------------------------------------------- 7 SOLE VOTING POWER 0 ----------- ----------------------------------------------------- 8 SHARED VOTING POWER NUMBER OF 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes SHARES the 5,800,000 shares of Common Stock issuable upon BENEFICIALLY either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B OWNED Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc.) (See Item 4 below) BY EACH $55,928.57 principal amount of a 12% Convertible REPORTING Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) PERSON $3,188,235 principal amount of 15% Subordinated WITH Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) ----------- ----------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 ----------- ----------------------------------------------------- 10 SHARED DISPOSITIVE POWER $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc. (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------- ----------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc.) (See Item 4 below) $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - ------------- ----------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 66.86% (See Item 4 below) - ------------- ----------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - ------------- ----------------------------------------------------------------- - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 7 of 10 Pages - ---------------------------- ---------------------------- - ------------- ----------------------------------------------------------------- 1 NAME OF REPORTING PERSON Thomas E. Sandell - ------------- ----------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - ------------- ----------------------------------------------------------------- 3 SEC USE ONLY - ------------- ----------------------------------------------------------------- 4 SOURCE OF FUNDS AF - ------------- ----------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) |_| - ------------- ----------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Sweden - ------------- ----------------------------------------------------------------- 7 SOLE VOTING POWER 0 ----------- ----------------------------------------------------- 8 SHARED VOTING POWER NUMBER OF 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes SHARES the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior BENEFICIALLY Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth OWNED Biofuels, Inc.) (See Item 4 below) BY EACH $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 REPORTING shares of Common Stock (See Item 4 below) PERSON $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible WITH into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) ----------- ----------------------------------------------------- 9 SOLE DISPOSITIVE POWER 0 ----------- ----------------------------------------------------- 10 SHARED DISPOSITIVE POWER $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc. (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------- ----------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,000,000 shares of Common Stock pursuant to irrevocable proxy of Earth Biofuels, Inc. (includes the 5,800,000 shares of Common Stock issuable upon either the exchange of the Amended and Restated Senior Secured Convertible Exchangeable Note or Series B Senior Secured Convertible Exchangeable Note of Earth Biofuels, Inc.) (See Item 4 below) $55,928.57 principal amount of a 12% Convertible Promissory Note of Issuer convertible into 621,429 shares of Common Stock (See Item 4 below) $3,188,235 principal amount of 15% Subordinated Convertible Promissory Notes of Issuer convertible into 318,824 shares of Common Stock (See Item 4 below) Warrants exercisable into 797,059 shares of Common Stock (See Item 4 below) - ------------- ----------------------------------------------------------------- 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - ------------- ----------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 66.86% (See Item 4 below) - ------------- ----------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - ------------- ----------------------------------------------------------------- - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 8 of 10 Pages - ---------------------------- ---------------------------- Pursuant to Rule 13d-2 promulgated under the Act, this Schedule 13D/A (this "Amendment No. 3") amends the Schedule 13D filed on July 10, 2008 [File Number 005-84091] (the "Original Schedule 13D"), as amended by the Schedule 13D/A filed on August 8, 2008 (the "Amendment No. 1") and as amended by the Schedule 13D/A filed on August 23, 2008 (the "Amendment No. 2", and the Original Schedule 13D as amended by Amendment No. 1 and Amendment No. 2, the "Amended Schedule 13D"). This Amendment No. 3 is being filed by Castlerigg PNG Investments LLC, a Delaware limited liability company ("Castlerigg LLC"); Castlerigg Master Investments Ltd., a British Virgin Islands company ("Castlerigg Master Investments"); Sandell Asset Management Corp., a Cayman Islands exempted company ("SAMC"); Castlerigg International Limited, a British Virgin Islands company ("Castlerigg International"); Castlerigg International Holdings Limited, a British Virgin Islands company ("Castlerigg Holdings"); and Thomas E. Sandell ("Sandell"). Castlerigg LLC, Castlerigg Master Investments, SAMC, Castlerigg International, Castlerigg Holdings, and Sandell are collectively referred to herein as the "Reporting Persons". The filing of this statement on Schedule 13D/A and any future amendments hereto, and the inclusion of information herein and therein, shall not be construed as an admission that any of the Reporting Persons, for the purpose of Section 13(d) of the Act or otherwise, is the beneficial owner of any shares of Common Stock. The Reporting Persons are making this single, joint filing because they may be deemed to constitute a "group" within the meaning of Section 13(d)(3) of the Act. The agreement among the Reporting Entities to file jointly (the "Joint Filing Agreement") was filed as Appendix II to the Original Schedule 13D. ITEM 4. PURPOSE OF TRANSACTION Item 4 of the Amended Schedule 13D is being amended by adding the following: On October 17, 2008, Castlerigg LLC delivered to EBOF the Exchange Notice attached hereto as Exhibit 15 (the "Exchange Notice"), whereby Castlerigg LLC elected to exchange $58,000,000 in principal amount of its Amended EBOF-Castlerigg Note for the PNG Exchange Shares. On October 22, 2008, Castlerigg LLC delivered to EBOF the letter attached hereto as Exhibit 16, whereby Castlerigg LLC elected to reduce the principal amount of the Amended EBOF-Castlerigg Note to be exchanged pursuant to the Exchange Notice to $55,000,000 in principal amount of its Amended EBOF-Castlerigg Note for 5,500,000 of the PNG Exchange Shares (the "Exchange"). The Exchange has not been consummated as of the date of this filing. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER The second sentence of Item 5(a) of the Amended Schedule 13D is being amended and restated as follows: The shares issuable to Castlerigg LLC upon conversion of the PNG Note and upon exchange of the EBOF-Castlerigg Notes, together with the additional shares of Common Stock also subject to the Proxy, represent approximately 66.86% of the shares of Common Stock outstanding based on 11,398,309 shares of Common Stock outstanding as set forth in the Current Report on Form 8-K, filed by the Issuer on August 19, 2008. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER Item 6 of the Amended Schedule 13D is being amended by adding the following: On October 17, 2008, Castlerigg LLC delivered to EBOF the Exchange Notice attached hereto as Exhibit 15, whereby Castlerigg LLC elected to exchange $58,000,000 in principal amount of its Amended EBOF-Castlerigg Note for the PNG Exchange Shares. On October 22, 2008, Castlerigg LLC delivered to EBOF the letter attached hereto as Exhibit 16, whereby Castlerigg LLC elected to reduce the principal amount of the Amended EBOF-Castlerigg Note to be exchanged pursuant to the Exchange Notice to $55,000,000 in principal amount of its Amended EBOF-Castlerigg Note for 5,500,000 of the PNG Exchange Shares. - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 9 of 10 Pages - ---------------------------- ---------------------------- ITEM 7. MATERIAL TO BE FILED AS EXHIBITS Item 7 of the Amended Schedule 13D is being amended by adding the following: 15. Exchange Notice, dated as of October 17, 2008, delivered by Castlerigg LLC to EBOF. 16. Letter, dated as of October 22, 2008, delivered by Castlerigg LLC to EBOF. [The remainder of this page is intentionally left blank] - ---------------------------- ---------------------------- CUSIP No. 69350G303 SCHEDULE 13D Page 10 of 10 Pages - ---------------------------- ---------------------------- Signature After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: October 22, 2008 CASTLERIGG PNG INVESTMENTS LLC By: Castlerigg Master Investments Ltd., its managing member and sole member By: Sandell Asset Management Corp., its Investment Manager By: /s/ Thomas E. Sandell --------------------- Thomas E. Sandell, Chief Executive Officer CASTLERIGG MASTER INVESTMENTS LTD. By: Sandell Asset Management Corp., its Investment Manager By: /s/ Thomas E. Sandell --------------------- Thomas E. Sandell, Chief Executive Officer SANDELL ASSET MANAGEMENT CORP. By: Sandell Asset Management Corp., its Investment Manager By: /s/ Thomas E. Sandell --------------------- Thomas E. Sandell, Chief Executive Officer CASTLERIGG INTERNATIONAL LIMITED By: Sandell Asset Management Corp., its Investment Manager By: /s/ Thomas E. Sandell --------------------- Thomas E. Sandell, Chief Executive Officer CASTLERIGG INTERNATIONAL HOLDINGS LIMITED By: Sandell Asset Management Corp., its Investment Manager By: /s/ Thomas E. Sandell --------------------- Thomas E. Sandell, Chief Executive Officer THOMAS E. SANDELL By: /s/ Thomas E. Sandell --------------------- Thomas E. Sandell Exhibit 15 EXHIBIT II EARTH BIOFUELS, INC. EXCHANGE NOTICE Reference is made to the Amended and Restated Senior Secured Exchangeable Convertible Note (the "NOTE") issued to the undersigned by Earth Biofuels, Inc. (the "COMPANY"). In accordance with and pursuant to the Note, the undersigned hereby elects to exchange the Exchange Amount (as defined in the Note) of the Note indicated below into shares of PNG Shares (as defined in the Note). Date of Exchange: October 17, 2008 Aggregate Exchange Amount to be exchanged: $58,000,000 Please confirm the following information: Exchange Price: $10.00 Number of shares of PNG Shares to be issued: 5,800,000 Notwithstanding anything to the contrary contained herein, if the Holder is subject to Section 4(d) of the Note, this Exchange Notice shall constitute a representation by the Holder of the Note submitting this Exchange Notice that, after giving effect to the exchange provided for in this Exchange Notice, such Holder (together with its affiliates) will not have beneficial ownership (together with the beneficial ownership of such Person's affiliates) of a number of PNG Shares which exceeds the Maximum Percentage of the total outstanding PNG Shares as determined pursuant to the provisions of Section 4(d)(i) of the Note. Please issue the PNG Shares into which the Note is being exchanged in the following name and to the following address: Issue to: Sandell Asset Management 40 West 57th Street New York, NY 10019 Facsimile Number: (212) 603-5710 Authorization: /s/ Timothy O'Brien By: Timothy O'Brien Title: Chief Financial Officer of Sandell Asset Management Corp., investment manager to Castlerigg Master Investments Ltd. Dated: October 17, 2008 Account Number: Credit Suisse DTC 355 (if electronic book entry transfer) Transaction Code Number: (if electronic book entry transfer) Exhibit 16 CASTLERIGG PNG INVESTMENTS LLC Sandell Asset Management 40 West 57th Street New York, NY 10019 October 22, 2008 Earth Biofuels, Inc. 3001 Knox Street, Suite 403, Dallas, Texas 75205 Attention: Dennis McLaughlin RE: EXCHANGE NOTICE OF OCTOBER 17, 2008 To whom it may concern, Reference is hereby made to (i) that certain Amended and Restated Senior Secured Exchangeable Convertible Note, dated July 24, 2006 and amended on June 26, 2008 (the "NOTE"), issued by Earth Biofuels, Inc., a Delaware corporation ("EBOF") to Castlerigg PNG Investments LLC ("CASTLERIGG") and (ii) that certain Exchange Notice of Castlerigg, dated October 17, 2008 (the "EXCHANGE NOTICE"), whereby Castlerigg elected to exchange $58,000,000 of the principal amount of the Note for 5,800,000 shares of common stock, $0.001 par value (the "COMMON STOCK") of PNG Ventures, Inc., a Nevada Company (the "COMPANY"). In connection with the Exchange Failure (as defined in the Note) with respect to the Exchange Notice, pursuant to Section 4(c)(ii) of the Note, Castlerigg hereby elects to reduce the principal amount of the Note to be exchanged pursuant to the Exchange Notice by voiding its election to exchange $3,000,000 of the principal amount of the Note for 300,000 shares of Common Stock of the Company. Please note that Castlerigg's election pursuant to the Exchange Notice to exchange $55,000,000 of the principal amount of the Note for 5,500,000 shares of Common Stock of the Company remains in full force and effect. If you have any questions, please contact Matthew Pliskin at (212) 603-5822 or Jamil French at (212) 603-5837 at Castlerigg. Very truly yours, CASTLERIGG PNG INVESTMENT LLC By: Castlerigg Master Investments Ltd., its sole member By: Sandell Asset Management Corp., its investment manager By: /s/ Thomas E. Sandell -------------------------------------- Name: Thomas E. Sandell Title: Chief Executive Officer CC: Eleazer N. Klein, Esq., Schulte Roth & Zabel LLP Gregory Sichenzia, Esq., Sichenzia Ross Friedman Ference LLP -----END PRIVACY-ENHANCED MESSAGE-----