-----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, G8i16sXlBVOhAaG5+fw0orfGy5i6D4LLF9P6caqUcolkDgeVl6azFA0xHX/XAhc/ tGLfWFSspiudrtxu2kiT3g== 0000950134-03-004799.txt : 20030328 0000950134-03-004799.hdr.sgml : 20030328 20030328122538 ACCESSION NUMBER: 0000950134-03-004799 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20030328 GROUP MEMBERS: AMERICAN REALTY INVESTORS INC GROUP MEMBERS: BASIC CAPITAL MANAGEMENT INC GROUP MEMBERS: EQK HOLDINGS INC GROUP MEMBERS: SYNTEK ASSET MANAGEMENT LP GROUP MEMBERS: THE GENE E PHILLIPS CHILDREN'S TRUST GROUP MEMBERS: TRANSCONTINENTAL REALTY ACQUISITION CORP SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: TRANSCONTINENTAL REALTY INVESTORS INC CENTRAL INDEX KEY: 0000733590 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 946565852 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-40410 FILM NUMBER: 03623699 BUSINESS ADDRESS: STREET 1: 1800 VALLEY VIEW LANE STREET 2: SUITE 300 CITY: DALLAS STATE: TX ZIP: 75234 BUSINESS PHONE: 4695224200 MAIL ADDRESS: STREET 1: 1800 VALLEY VIEW LANE STREET 2: SUITE 300 CITY: DALLAS STATE: TX ZIP: 75234 FORMER COMPANY: FORMER CONFORMED NAME: JOHNSTOWN CONSOLIDATED REALTY TRUST DATE OF NAME CHANGE: 19861005 FORMER COMPANY: FORMER CONFORMED NAME: JOHNSTOWN CONSOLIDATED REALTY TRUST /CA/ DATE OF NAME CHANGE: 19890815 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN REALTY TRUST INC CENTRAL INDEX KEY: 0000827165 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE OPERATORS (NO DEVELOPERS) & LESSORS [6510] IRS NUMBER: 540697989 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 10670 N CENTRAL EXPRESSWAY STREET 2: STE 300 CITY: DALLAS STATE: TX ZIP: 75231 BUSINESS PHONE: 2146924700 MAIL ADDRESS: STREET 1: 10670 N CENTRAL EXPRESSWAY STREET 2: SUITE 600 CITY: DALLAS STATE: TX ZIP: 75231 SC 13D/A 1 d04436asc13dza.txt AMENDMENT NO. 38 TO SCHEDULE 13D SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 38) 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) March 18, 2003 - -------------------------------------------------------------------------------- (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). CUSIP No. 893617-20-9 - ------------------------------------------------------------------------------- 1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only) American Realty Trust, Inc., FEI No. 54-0697989 - ------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) - ------------------------------------------------------------------------------- 3) SEC Use Only - ------------------------------------------------------------------------------- 4) Source of Funds (See Instructions) WC - ------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- Georgia 6) Citizenship or Place of Organization - ------------------------------------------------------------------------------- 7) Sole Voting Power -0- Number of ------------------------------------------------------------ shares bene- 8) Shared Voting Power ficially Owned by -0- Each Report- ------------------------------------------------------------ ing Person 9) Sole Dispositive Power With -0- ------------------------------------------------------------ 10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 3,994,301 - ------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) - ------------------------------------------------------------------------------- 13) Percent of Class Represented by Amount in Row (11) 49.5% - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) CO CUSIP No. 893617-20-9 - -------------------------------------------------------------------------------- 1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only) Transcontinental Realty Acquisition Corporation, FEI No. 13-4243611 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) - ------------------------------------------------------------------------------- 3) SEC Use Only - ------------------------------------------------------------------------------- 4) Source of Funds (See Instructions) WC - ------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- 6) Citizenship or Place of Organization Nevada - ------------------------------------------------------------------------------- 7) Sole Voting Power Number of 1,213,226 ------------------------------------------------------------- Shares Bene- ficially 8) Shared Voting Power Owned by -0- ------------------------------------------------------------- Each Report- ing Person 9) Sole Dispositive Power With 1,213,226 ------------------------------------------------------------- 10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 1,213,226 - ------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) - ------------------------------------------------------------------------------- 13) Percent of Class Represented by Amount in Row (11) 15.03% - ------------------------------------------------------------------------------- CO 14) Type of Reporting Person (See Instructions) CUSIP No. 893617-20-9 - ------------------------------------------------------------------------------- 1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only) Basic Capital Management, Inc., FEI No. 75-2261065 - ------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) - ------------------------------------------------------------------------------- 3) SEC Use Only - ------------------------------------------------------------------------------- 4) Source of Funds (See Instructions) WC - ------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- 6) Citizenship or Place of Organization Nevada - ------------------------------------------------------------------------------- 7) Sole Voting Power Number of 1,166,947 ------------------------------------------------------------- Shares Bene- ficially 8) Sole Voting Power Owned by -0- ------------------------------------------------------------- Each Report- ing Person 9) Sole Dispositive Power With 1,166,947 ------------------------------------------------------------- 10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 1,166,947 - ------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) - ------------------------------------------------------------------------------- 13) Percent of Class Represented by Amount in Row (11) 14.5% - ------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) CO CUSIP No. 893517-20-9 - ------------------------------------------------------------------------------- 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 - ------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) - ------------------------------------------------------------------------------- 3) SEC Use Only - ------------------------------------------------------------------------------- 4) Source of Funds (See Instructions) N/A - ------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- 6) Citizenship or Place of Organization Texas - ------------------------------------------------------------------------------- 7) Sole Voting Power Number of 1,827 ------------------------------------------------------------- Shares Bene- ficially 8) Shared Voting Power Owned by -0- ------------------------------------------------------------- Each Report- ing Person 9) Sole Dispositive Power With 1,827 ------------------------------------------------------------- 10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 1,827 - ------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) - ------------------------------------------------------------------------------- 13) Percent of Class Represented by Amount in Row (11) 0.002% - ------------------------------------------------------------------------------- OO 14) Type of Reporting Person (See Instructions) CUSIP No. 893617-20-9 - ------------------------------------------------------------------------------- 1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only) Syntek Asset Management, L.P., FEI No. 75-2311348 - ------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) - ------------------------------------------------------------------------------- 3) SEC Use Only - ------------------------------------------------------------------------------- 4) Source of Funds (See Instructions) N/A - ------------------------------------------------------------------------------- 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 Number of 26,475 ------------------------------------------------------------- Shares Bene- ficially 8) Shared Voting Power Owned by -0- ------------------------------------------------------------- Each Report- ing Person 9) Sole Dispositive Power With 26,475 ------------------------------------------------------------- 10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 26,475 - ------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) - ------------------------------------------------------------------------------- 13) Percent of Class Represented by Amount in Row (11) 0.3% - ------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) PN CUSIP No. 893617-20-9 - ------------------------------------------------------------------------------- 1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only) American Realty Investors, Inc., FEI No. 75-2847135 - ------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) - ------------------------------------------------------------------------------- 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) - ------------------------------------------------------------------------------- 6) Citizenship or Place of Organization Nevada - ------------------------------------------------------------------------------- 7) Sole Voting Power Number of -0- ------------------------------------------------------------- Shares Bene- ficially 8) Shared Voting Power Owned by -0- ------------------------------------------------------------- Each Report- ing Person 9) Sole Dispositive Power With -0- ------------------------------------------------------------- 10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 5,207,527 - ------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) - ------------------------------------------------------------------------------- 13) Percent of Class Represented by Amount in Row (11) 64.51% - ------------------------------------------------------------------------------- CO 14) Type of Reporting Person (See Instructions) CUSIP No. 893617-20-9 - ------------------------------------------------------------------------------- 1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (entities only) EQK Holdings, Inc., FEI No. 75-2931679 - ------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) - ------------------------------------------------------------------------------- 3) SEC Use Only - ------------------------------------------------------------------------------- 4) Source of Funds (See Instructions) WC - ------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e) - ------------------------------------------------------------------------------- 6) Citizenship or Place of Organization Nevada - ------------------------------------------------------------------------------- 3,994,301 7) Sole Voting Power Number of ------------------------------------------------------------- Shares Bene- ficially 8) Shared Voting Power Owned by -0- ------------------------------------------------------------- Each Report- ing Person 9) Sole Dispositive Power With 3,994,301 ------------------------------------------------------------- 10) Shared Dispositive Power -0- - ------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 3,994,301 - ------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) - ------------------------------------------------------------------------------- 13) Percent of Class Represented by Amount in Row (11) 49.5% - ------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) CO ITEM 1. SECURITY AND ISSUER This Amendment No. 38 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 37 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. 38 to Schedule 13D is being filed to reflect various changes in the information contained in the Amended Statement, including the results of a tender offer for the Issuer's Shares. During the period ended March 18, 2003, Transcontinental Realty Acquisition Corporation ("TCI AcqSub"), a wholly-owned subsidiary of American Realty Investors, Inc. ("ARL") received, accepted and purchased 1,213,226 Shares of the Issuer pursuant to a cash tender offer which resulted in the beneficial ownership of the Reporting Persons increasing by approximately 15% of the number of Shares of Common Stock of the Issuer outstanding. 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"), The Gene E. Phillips Children's Trust (the "GEP Trust"), Syntek Asset Management, L.P., a Delaware limited partnership ("SAM LP"), ARL, EQK Holdings, Inc., a Nevada corporation ("EQK"), and TCI AcqSub, each of which have their principal executive offices located at 1800 Valley View Lane, Suite 300, Dallas, Texas 75234. All of ART, BCM, the GEP Trust, SAM LP, ARL, EQK and TCI AcqSub 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 ARL, and Mr. Phillips' son, Ryan T. Phillips, serves as a director of BCM and is a beneficiary of the GEP Trust. EQK is a wholly-owned subsidiary of ART, and ART and TCI AcqSub are each wholly-owned subsidiaries of ARL. -1- TCI AcqSub is a corporation organized and existing under the laws of the State of Nevada. TCI AcqSub is a subsidiary of ARL. The name, business address and capacity with TCI AcqSub of each of the executive officers or directors of TCI AcqSub 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. (d) During the last five years, none of the Reporting Persons, nor any of their respective executive officers or directors, general partners or trustees has been convicted in a criminal proceeding (excluding traffic violations and/or similar misdemeanors). 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. Prior to the purchase of the Shares in the cash tender offer which expired March 18, 2003, ARL and its subsidiaries sold parcels of land and other assets and generated funds in the ordinary course of business which included refinancings of one or more outstanding loans. However, none of such transactions involved funds or other consideration borrowed or otherwise obtained for the direct purpose of acquiring the Shares pursuant to the cash tender offer. ITEM 4. PURPOSE OF TRANSACTION Item 4 of the Amended Statement is hereby further amended as follows: Except with respect to the proposed tender offer described in Item 5 below, a merger transaction previously described and any ancillary affect same would have on the following items, the Reporting Persons do not have any plans or proposals which relate to or would result in: (a) The acquisition by any person of additional securities of the Issuer or the disposition of securities of the Issuer; -2- (b) An extraordinary corporate transaction, such a merger, reorganization or liquidation, involving the Issuer or any of its subsidiaries; (c) A sale or transfer of a material amount of assets of TCI or any of its subsidiaries (except that as part of the proposed merger transaction, certain real property assets owned by the Issuer have been sold and may be sold in the future); (d) Any change in the present Board of Directors or Management of TCI, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the Board; (e) Any material change in the present capitalization or dividend policy of TCI; (f) Any other material change in TCI's business or corporate structure; (g) Changes in TCI's charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of TCI by any person (except that the Reporting Persons' collective ownership of over 79% of the outstanding Shares would itself be an impediment to any potential change of control not approved by the Reporting Persons); (h) Causing a class of securities of TCI to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association (except that if the merger of TCI with a subsidiary of ARL is effectuated, TCI's Shares will no longer be eligible for listing on a national securities exchange); (i) A class of equity securities of TCI becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934, as amended (except that if the merger of TCI with a subsidiary of ARL is consummated, the number of common stockholders of TCI will be reduced below 300, and such Shares would then become eligible for termination of registration); or (j) Any actions similar to any of those enumerated above. -3- 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 March 18, 2003, the total number of issued and outstanding Shares was 8,072,594 Shares. As of March 18, 2003, the following Shares were owned directly and beneficially by the Reporting Persons set forth below:
No. of Shares Approximate % Name Owned Directly Class ---- -------------- -------------- ART* 3,994,301 49.5 % BCM 1,166,947 14.5 % GEP Trust 1,827 0.002% SAM LP 26,475 0.3 % ARL*+ 5,207,527 64.51 % EQK 3,994,301 49.5 % TCI AcqSub 1,213,226 15.03 % --------- ------ Totals 6,402,776** 79.31 % ========= ======
- ----------------------- * Same Shares owned by EQK; EQK is a wholly-owned subsidiary of ART which in turn is a wholly-owned subsidiary of ARL; ARL is the indirect parent of EQK. + Same Shares owned by TCI AcqSub which is a wholly-owned subsidiary of ARL. ** If the merger of TCI with a subsidiary of ARL is consummated (i) the 1,166,977 Shares held by BCM will be converted into 1,166,977 shares of ARL Series G Preferred Stock, (ii) the 1,827 Shares held by the GEP Trust will be converted into 1,827 shares of ARL Series G Preferred Stock, (iii) the 26,475 Shares held by SAM LP will be converted into 26,425 shares of ARL Series G Preferred Stock, (iv) the 3,994,301 Shares held by EQK will be cancelled, and (v) the 1,213,226 Shares held by TCI AcqSub will be cancelled. Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934 (the "Exchange Act"), each of the directors of ARL, ART and EQK may be deemed to beneficially own the number of Shares owned by EQK described above; each of the directors of ARL and TCI AcqSub may be deemed to beneficially own the number of Shares owned by TCI AcqSub described above; each of the directors of BCM may be deemed to beneficially own the Shares held directly by BCM; and 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. 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: -4-
Name of Director or No. of Shares % of General Partner Entity Beneficially Owned Class ------------------- ------ ------------------ ------ Ted P. Stokley ARL 5,207,527*+ 64.51 % Earl D. Cecil ARL 5,207,527*+ 64.51 % Richard W. Humphrey ARL 5,207,527*+ 64.51 % Mizrachi ARL 5,207,527*+ 64.51 % Ryan T. Phillips BCM 1,168,804(1) 14.5 % Mickey Ned Phillips BCM 1,166,977 14.5 % 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 ART, EQK and TCI 5,207,527*+ 64.51 % AcqSub Ronald E. Kimbrough ART, EQK and TCI 5,207,527*+ 64.51 % AcqSub --------- ------ Total Units beneficially owned 6,402,776 79.31% by Reporting Persons and ========= ====== individuals listed above: - ----------------------------- (1) Also beneficiary of the GEP Trust.
(b) Each of the directors of EQK share voting and dispositive power over the 3,994,301 Shares held by EQK. Each of the directors of TCI AcqSub share voting and dispositive power over the 1,213,226 Shares held by TCI AcqSub The directors of BCM have shared voting and dispositive power over the 1,163,677 Shares held by BCM. 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) During the 60 calendar days ended March 18, 2003, 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 except that TCI AcqSub purchased 1,213,226 Shares pursuant to a cash tender offer at $17.50 per Share (a total of $21,231,455). (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. -5- 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: EQK has pledged 2,751,798 Shares to Sunset Management, LLC pursuant to a loan agreement with such lender. The remaining 1,242,503 Shares owned directly by EQK may be deemed to be "collateral" for borrowings pursuant to margin or other account arrangements with bankers and brokerage firms relating to accounts of EQK. Such arrangements are standard arrangements involving margin securities of up to a specified percentage of 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 may vary with applicable costs and account balances. BCM has pledged 920,507 Shares to Sunset Management, LLC pursuant to a loan agreement with such lender. The remaining 241,440 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 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. -6- 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 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. 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. -7- 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. 38 to Statement on Schedule 13D is true, complete and correct. Dated: March 27, 2003. SYNTEK ASSET MANAGEMENT, LP, a AMERICAN REALTY TRUST, INC. Delaware limited partnership By: /s/ Ronald E. Kimbrough By: Syntek Asset Management, ----------------------------- Inc., General Partner Ronald E. Kimbrough Executive Vice President By: /s/ Ronald E. Kimbrough ------------------------------- Ronald E. Kimbrough Executive Vice President AMERICAN REALTY INVESTORS, INC. BASIC CAPITAL MANAGEMENT, INC By: /s/ Ronald E. Kimbrough By: Ronald E. Kimbrough ------------------------------- ---------------------------- Ronald E. Kimbrough Ronald E. Kimbrough Executive Vice President Executive Vice President TRANSCONTINENTAL REALTY EQK HOLDINGS, INC. ACQUISITION CORPORATION By: /s/ Ronald E. Kimbrough By: /s/ Ronald E. Kimbrough ------------------------------- ---------------------------- Ronald E. Kimbrough Ronald E. Kimbrough President Executive Vice President THE GENE E. PHILLIPS CHILDREN'S TRUST By: /s/ Donald W. Phillips ------------------------------- Donald W. Phillips, Trustee -8- SCHEDULE 7 EXECUTIVE OFFICERS AND DIRECTORS OF TCI ACQSUB
NAME AND CAPACITY WITH PRESENT BUSINESS IN ART HOLDINGS, INC. BUSINESS ADDRESS WHICH EMPLOYMENT IS CONDUCTED 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. Ronald E. Kimbrough, 1800 Valley View Lane Executive Vice President Director, President and Suite 300 and Chief Financial Treasurer Dallas, Texas 75234 Officer, Basic Capital Management, Inc. Louis J. Corna, 1800 Valley View Lane Executive Vice President Vice President Suite 300 of Tax, Basic Capital Dallas, Texas 75234 Management, Inc.
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