-----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, L6pwkHp6/KkTxErQybjBbsgOxcAaAH2bJ255pdgF4ucEBzlZ9rtbMdjmt1FJx0BI bom3jyACqXn4pbuDe8nm4w== 0000902664-97-000159.txt : 19970411 0000902664-97-000159.hdr.sgml : 19970411 ACCESSION NUMBER: 0000902664-97-000159 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 19970410 SROS: AMEX GROUP MEMBERS: BETJE PARTNERS GROUP MEMBERS: DAN LEVINSON GROUP MEMBERS: DAVID ERICSON GROUP MEMBERS: EDWIN H. MORGENS GROUP MEMBERS: JOANN MCNIFF GROUP MEMBERS: JOHN C. "BRUCE" WATERFALL GROUP MEMBERS: JOHN RAPHAEL GROUP MEMBERS: MORGENS WATERFALL INCOME PARTNERS, LP. GROUP MEMBERS: MORGENS WATERFALL VINTIADIS & CO INC GROUP MEMBERS: MORGENS, WATERFALL, VINTIADIS & COMPANY, INC. GROUP MEMBERS: MW CAPITAL, L.L.C. GROUP MEMBERS: MW MANAGEMENT, L.L.C. GROUP MEMBERS: MWV EMPLOYEE RETIREMENT PLAN GROUP TRUST GROUP MEMBERS: PHOENIX PARTNERS, L.P. GROUP MEMBERS: PRIME GROUP II, L.P. GROUP MEMBERS: PRIME GROUP III, L.P. GROUP MEMBERS: PRIME GROUP, L.P. GROUP MEMBERS: PRIME, INC. GROUP MEMBERS: RESTART PARTNERS II, L.P. GROUP MEMBERS: RESTART PARTNERS III, L.P. GROUP MEMBERS: RESTART PARTNERS, L.P. GROUP MEMBERS: STEPHANIE CATLETT GROUP MEMBERS: THE COMMON FUND FOR NON-PROFIT ORGANIZATIONS SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: RIVIERA HOLDINGS CORP CENTRAL INDEX KEY: 0000899647 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 880296885 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-50785 FILM NUMBER: 97578352 BUSINESS ADDRESS: STREET 1: 2901 LAS VEGAS BLVD SOUTH CITY: LAS VEGAS STATE: NV ZIP: 89109 BUSINESS PHONE: 7027949527 MAIL ADDRESS: STREET 1: 2901 LAS VEGAS BLVD S CITY: LAS VEGAS STATE: NV ZIP: 89109 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: MORGENS WATERFALL VINTIADIS & CO INC CENTRAL INDEX KEY: 0001016150 STANDARD INDUSTRIAL CLASSIFICATION: AIRCRAFT [3721] IRS NUMBER: 132674766 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 10 EAST 50TH STREET STREET 2: 10 EAST 50TH STREET CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2127050500 MAIL ADDRESS: STREET 1: 10 EAST 50TH ST CITY: NEW YORK STATE: NY ZIP: 10022 SC 13D/A 1 AMENDMENT NO. 1 TO SCHDEDULE 13D SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 1) RIVIERA HOLDINGS CORPORATION (Name of Issuer) COMMON STOCK, PAR VALUE $.001 PER SHARE (Title of Class of Securities) 769627100 (CUSIP Number) EDWIN H. MORGENS 10 EAST 50TH STREET NEW YORK, NEW YORK 10022 (212) 705-0500 (Name, address and telephone number of person authorized to receive notices and communications) April 1, 1997 (Date of event which requires filing of this statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ]. Check the following box if a fee is being paid with the statement [ ]. (A fee is not required only if the reporting person: (1) has a previous statement on file reporting beneficial ownership of more than five percent of the class of securities described in Item 1; and (2) has filed no amendment subsequent thereto reporting beneficial ownership of five percent or less of such class.) (See Rule 13d-7.) NOTE: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent. * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for purposes 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). Page 1 of 38 Pages 13D CUSIP No. 769627100 ___________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Morgens Waterfall Income Partners, L.P. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** 00 ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 43,920 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 43,920 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 43,920 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.9% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 2 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Restart Partners, L.P. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** WC, 00 ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 282,000 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 282,000 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 282,000 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.7% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 3 of 38 Pages 13D CUSIP No. 769627100 _____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Restart Partners II, L.P. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** 00 ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 440,600 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 440,600 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 440,600 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.0% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 4 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Restart Partners III, L.P. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** 00 ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 298,600 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 298,600 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 298,600 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.1% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 5 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON The Common Fund for Non-Profit Organizations _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** 00 ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER - 0 - SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 90,880 - See Response to Item 5 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 90,880 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 90,880 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.8% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** CO _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 6 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON MWV Employee Retirement Plan Group Trust _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** 00 ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 7,760 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 7,760 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,760 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** EP _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 7 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Betje Partners _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** WC ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 29,360 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 29,360- See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 29,360 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.6% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 8 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Phoenix Partners, L.P. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** 00 ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 79,440 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 79,440 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 79,440 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.6% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 9 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Morgens, Waterfall, Vintiadis & Company, Inc. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION New York _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 29,360 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 90,880 - See Response to Item 5 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 120,240 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 120,240 - See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.4 % _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** CO _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 10 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON MW Capital, L.L.C. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 43,920 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 43,920 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 43,920 - See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.9% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** CO _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 11 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Prime Group, L.P. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 282,000 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 282,000 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 282,000 - See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.7% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 12 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Prime Group II, L.P. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 440,600 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 440,600 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 440,600 - See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 9.0% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 13 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Prime Group III, L.P. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 298,600 See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 298,600 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 298,600 - See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.1% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** PN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 14 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Prime, Inc. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 1,021,200 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 1,021,200 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,021,200 - See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 20.7% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** CO _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 15 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON MW Management, L.L.C. _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER 79,440 - See Response to Item 5 SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER - 0 - OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER 79,440 - See Response to Item 5 REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER - 0 - _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 79,440 - See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.6% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** CO _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 16 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON John C. "Bruce" Waterfall _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION United States _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER - 0- SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 1,264,800 - See Response to Item 5 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER - 0- REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER 1,264,800 - See Response to Item 5 _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,264,800- See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 25.7% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** IN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 17 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Edwin H. Morgens _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION United States _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER - 0 - SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 1,264,800 - See Response to Item 5 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER - 0 - REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER 1,264,800 -See Response to Item 5 _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,264,800 -See Response to Item 5 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [x] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 25.7% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** IN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 18 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON David Ericson _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION United States _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER - 0 - SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 7,760 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER - 0 - REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER 7,760 _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,760 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** IN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 19 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Dan Levinson _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION United States _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER - 0 - SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 7,760 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER - 0 - REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER 7,760 _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,760 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** IN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 20 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON John Raphael _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION United States _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER - 0 - SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 7,760 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER - 0 - REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER 7,760 _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,760 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** IN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 21 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Joann McNiff _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION United States _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER - 0 - SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 7,760 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER - 0 - REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER 7,760 _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,760 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** IN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 22 of 38 Pages 13D CUSIP No. 769627100 ____________________________________________________________________________ (1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Stephanie Catlett _____________________________________________________________________________ (2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP ** (a) [x] (b) [ ] _____________________________________________________________________________ (3) SEC USE ONLY _____________________________________________________________________________ (4) SOURCE OF FUNDS ** AF ____________________________________________________________ (5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] _____________________________________________________________________________ (6) CITIZENSHIP OR PLACE OF ORGANIZATION United States _____________________________________________________________________________ NUMBER OF (7) SOLE VOTING POWER - 0 - SHARES ______________________________________________________________ BENEFICIALLY (8) SHARED VOTING POWER 7,760 OWNED BY ______________________________________________________________ EACH (9) SOLE DISPOSITIVE POWER - 0 - REPORTING ______________________________________________________________ PERSON WITH (10) SHARED DISPOSITIVE POWER 7,760 _____________________________________________________________________________ (11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 7,760 _____________________________________________________________________________ (12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** [ ] _____________________________________________________________________________ (13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.2% _____________________________________________________________________________ (14) TYPE OF REPORTING PERSON ** IN _____________________________________________________________________________ ** SEE INSTRUCTIONS BEFORE FILLING OUT! Page 23 of 38 Pages ITEM 1. SECURITY AND ISSUER. This Amendment No. 1 ("Amendment") amends and restates the statement on Schedule 13D ("Statement") filed by persons named in Item 2 below with the Securities and Exchange Commission (the "Commission") on July 12, 1993 relating to the common stock, par value $.001 per share ("Common Stock"), of Riviera Holdings Corporation, a Nevada corporation (the "Issuer"). The principal executive offices of the Issuer are located at 2901 Las Vegas Boulevard South, Las Vegas, Nevada 89109. ITEM 2. IDENTITY AND BACKGROUND. This Statement is filed jointly by (a) Morgens Waterfall Income Partners, L.P. ("MWIP"); (b) Restart Partners, L.P. ("Restart"); (c) Restart Partners II, L.P. ("Restart II"); (d) Restart Partners III, L.P. ("Restart III"); (e) The Common Fund for Non-Profit Organizations (the "Common Fund"); (f) MWV Employee Retirement Plan Group Trust ("MWV Plan") as successor to the Morgens, Waterfall, Vintiadis & Co., Inc. Employee Profit Sharing Plan (the "Old Plan"); (g) Betje Partners ("Betje"); (h) Phoenix Partners, L.P. ("Phoenix"); (i) Morgens, Waterfall, Vintiadis & Company, Inc. ("Morgens Waterfall"); (j) MW Capital, L.L.C. ("MW Capital"); (k) Prime Group, L.P. ("Prime"); (l) Prime Group II, L.P. ("Prime II"); (m) Prime Group III, L.P. ("Prime III"); (n) Prime, Inc.; (o) MW Management, L.L.C. ("MW Management"); (p) John C. "Bruce" Waterfall ("Waterfall"); (q) David Ericson; (r) Dan Levinson; (s) John Raphael; (t) Joann McNiff; (u) Stephanie Catlett; and (v) Edwin H. Morgens ("Morgens" and together with the persons listed in clauses (a) through (u) above, the "Reporting Persons"). MWIP is a New York limited partnership whose principal business is to invest in securities of United States issuers. MW Capital, a Delaware limited liability company, is the general partner of MWIP. MWIP and MW Capital have their principal address at 10 East 50th Street, New York, New York 10022. Morgens and Waterfall are the managing members of MW Capital. All of the information concerning Morgens and Waterfall is set forth below. Restart, Restart II and Restart III are Delaware limited partnerships having their principal address at 10 East 50th Street, New York, New York 10022. The principal business of Restart, Restart II and Restart III is to invest in securities of financially troubled companies. The general partner of Restart is Prime, a Delaware limited partnership, having its principal address at 10 East 50th Street, New York, New York 10022. The principal business of Prime is to act as the general partner of Restart. The general partner of Prime is Prime, Inc., a Delaware corporation, having its principal address at 10 East 50th Street, New York, New York 10022. The principal business of Prime, Inc. is to act as general partner of Prime, Prime II and Prime III(as discussed below). Waterfall is the President and a Director of Prime, Inc. Morgens is the Chairman of the Board of Directors and the Secretary of Prime, Inc. All of the information concerning Morgens and Waterfall is set forth below. Page 24 of 38 Pages The general partner of Restart II is Prime II, a Delaware limited partnership, having its principal address at 10 East 50th Street, New York, New York, 10022. The principal business of Prime II is to act as the general partner of Restart II. The general partner of Prime II is Prime, Inc. All of the information concerning Prime, Inc. is set forth above. The general partner of Restart III is Prime III, a Delaware limited partnership, having its principal address at 10 East 50th Street, New York, New York 10022. The principal business of Prime III is to act as the general partner of Restart III. The general partner of Prime III is Prime, Inc. All of the information concerning Prime, Inc. is set forth above. MWV Plan is a trust established in 1994 for the benefit of the employees of Morgens Waterfall. MWV Plan is the successor to the Old Plan. The trustees of MWV Plan are David Ericson, Dan Levinson, John Raphael, Joann McNiff and Stephanie Catlett (collectively, the "Trustor"), all of whom are employees of Morgens Waterfall. MWV Plan's principal address is 10 East 50th Street, New York, New York 10022. The shares of Common Stock reported herein as owned or acquired by MWV Plan pursuant to the Plan (as described in Items 3, 4 and 5 of this Amendment) were originally acquired pursuant to the Plan by the Old Plan. Phoenix and Betje are New York limited partnerships having their principal address at 10 East 50th Street, New York, New York 10022. The principal business of Phoenix and Betje is to invest in securities of U.S. issuers. MW Management, a Delaware limited liability company, is the general partner of Phoenix. The principal address of MW Management is 10 East 50th Street, New York, New York 10022. Morgens and Waterfall are the managing members of MW Management. All of the information concerning Morgens and Waterfall is set forth below. Mr. Zanvyl Krieger ("Krieger") is the general partner of Betje. The business address of Krieger is c/o Weinberg and Green, 100 South Charles Street, Baltimore, Maryland 21201. Krieger is a U.S. citizen whose principal occupation is a private investor. Morgens Waterfall is a New York corporation having its principal address at 10 East 50th Street, New York, New York 10022. The business of Morgens Waterfall is the rendering of financial services. Pursuant to an investment advisory agreement, Krieger, as the general partner of Betje, has authorized Morgens Waterfall to make investment decisions and to act on behalf of Betje in carrying out Betje's investment objectives. In addition, Morgens Waterfall provides discretionary investment advisory services to the Common Fund and in that capacity has been granted full investment authority and shared voting authority with the Common Fund with respect to securities registered in the name of the Common Fund. Under rules promulgated by the Securities and Exchange Commission, Morgens Waterfall may be considered a "beneficial owner" of securities acquired by Betje or the Common Fund as a result of its relationships with Betje and the Common Fund. Page 25 of 38 Pages Waterfall is the President, Assistant Secretary and a Director of Morgens Waterfall. Morgens is the Chairman of the Board of Directors and the Secretary of Morgens Waterfall. The primary occupations of Morgens and Waterfall are to act as the principals in the business of Morgens Waterfall. The business address of Morgens and Waterfall, each of whom is a United States citizen, is at the office of Morgens Waterfall at 10 East 50th Street, New York, New York 10022. Morgens Waterfall has no other officers or directors. During the past five years, none of the persons described in this Item 2 have been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). During the last five years, none of such persons has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws, or finding any violations with respect to such laws. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. Under a Joint Plan of Reorganization of the Issuer pursuant to Chapter 11 of the Bankruptcy Code (the "Plan"), which became effective on June 30, 1993 (the "Effective Date"), MWIP, Restart, Restart II, Restart III, the Common Fund, MWV Plan, Betje and Phoenix became entitled to receive as of the Effective Date following shares of Common Stock upon surrender of an aggregate of $33,407,000 principal amount of the Issuer's Floating Rate First Mortgage Notes due November 1, 1993 (the "Notes") held by each of them as set forth below. The shares of Common Stock reported below are adjusted for a ten-for- one stock split on June 30, 1994 and a four-for-one stock split on November 16, 1995. Shares of Common Name Principal Amount of Notes Stock Issued MWIP $ 1,153,000 43,920 Restart 7,403,000 282,000 Restart II 11,565,000 440,600 Restart III 7,838,000 298,600 Common Fund 2,386,000 90,880 MWV Plan 206,000 7,760 Betje 771,000 29,360 Phoenix 2,085,000 79,440 Total $33,407,000 1,272,560 Page 26 of 38 Pages ITEM 4. PURPOSE OF TRANSACTION. Upon surrender of the Notes, MWIP, Restart, Restart II, Restart III, the Common Fund, MWV Plan, Betje and Phoenix acquired Common Stock pursuant to the Plan as an investment. The Reporting Persons have no present plan or proposals that relate to or would result in any of the actions enumerated in Item 4 of Schedule 13D, except as reported in Item 6 of this Amendment and in Exhibit 1 attached to this Amendment, and subject to the following: (i) If the transactions contemplated by the Letter (as discussed in Item 6 below and as set forth in Exhibit 1 to this Amendment) do not occur, the Reporting Persons may consider or pursue other plans or proposals to sell their ownership interest in the Issuer. (ii) The Reporting Persons reserve the right to buy additional securities of the Issuer or sell securities of the Issuer from time to time. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. (a) and (b) The following is the amount of Common Stock that is beneficially owned by each Reporting Person: Name Number of Shares Percentage of Class MWIP 43,920 0.9 Restart 282,000 5.7 Restart II 440,600 9.0 Restart III 298,600 6.1 Common Fund 90,880 1.8 MWV Plan 7,760 0.2 Betje 29,360 0.6 Phoenix 79,440 1.6 Total 1,272,560 25.9 Morgens Waterfall does not directly own any Common Stock. Morgens Waterfall may be deemed an indirect beneficial owner of 120,240 shares of Common Stock by virtue of contracts with Betje (29,360 shares) and the Common Fund (90,880 shares) pursuant to which Morgens Waterfall provides discretionary investment advisory services. Either of Morgens or Waterfall, as officers and directors of Morgens Waterfall, can exercise voting and investment authority with respect to such Common Stock. Prime does not directly own any Common Stock. Prime may be deemed an indirect beneficial owner of 282,000 shares of Common Stock by virtue of its position as general partner of Restart. Prime II does not directly own any Common Stock. Prime II may be deemed an indirect beneficial owner of 440,600 shares of Common Stock by virtue of its position as general partner of Restart II. Prime III does not directly own any Common Stock. Prime III may be deemed an indirect beneficial owner of 298,600 shares of Common Stock by virtue of its position as general partner of Restart III. Prime, Inc. does not directly own any Common Stock. Prime, Inc. may be deemed an indirect beneficial owner of 1,021,200 shares of Common Stock by virtue of its position as general partner of Prime, Prime II and Prime III. Page 27 of 38 Pages MW Capital does not directly own any Common Stock. MW Capital may be deemed an indirect beneficial owner of 43,920 shares of Common Stock by virtue of its position as general Partner of MWIP. MW Management does not directly own any Common Stock. MW Management may be deemed an indirect beneficial owner of 79,440 shares of Common Stock by virtue of its position as general partner of Phoenix. Krieger does not directly own any Common Stock. Krieger may be deemed an indirect beneficial owner of 29,360 shares of Common Stock by virtue of his position as general Partner of Betje. Krieger ultimately has the power to direct the receipt of dividends from, or the proceeds from the sale of, Common Stock owned by Betje. Waterfall does not directly own any Common Stock. Waterfall may be deemed an indirect beneficial owner of 1,264,800 shares of Common Stock by virtue of his positions as President, Assistant Secretary and a Director of Morgens Waterfall (120,240 shares); as a managing member of MW Capital, as general partner of MWIP (43,920 shares); as President and a Director of Prime, Inc., as general partner of each Prime, Prime II and Prime III, as general partners of Restart (282,000 shares), Restart II (440,600 shares) and Restart III (298,600 shares), respectively; and as a managing member of MW Management, as general partner of Phoenix (79,440 shares). Morgens does not directly own any Common Stock. Morgens may be deemed an indirect beneficial owner of 1,264,800 shares of Common Stock by virtue of his positions as Chairman of the Board of Directors and Secretary of Morgens Waterfall; as a managing member of MW Capital, as general partner of MWIP; as Chairman of the Board of Directors and Secretary of Prime, Inc., as general partner of each of Prime, Prime II and Prime III, and as general partners of Restart, Restart II and Restart III, respectively; and as a managing member of MW Management, as general partner of Phoenix. The Common Stock owned by each of those Reporting Persons is reported in the preceding paragraph. The Trustees do not directly own any of the Common Stock. Each of the Trustees may be deemed an indirect beneficial owner of 7,760 shares of Common Stock by virtue of their positions as trustees of MWV Plan, pursuant to which they share the power to exercise voting and investment authority with respect to the Common Stock owned by MWV Plan. Each Reporting Person hereby disclaims that it has any beneficial ownership of the securities owned, directly or indirectly, by any other entity. (c) There has been no reportable transactions involving the Common Stock by the Reporting Persons during the past 60 days. (d) Except as set forth in parts (a) and (b) of this Item and in Item 2 above, no other person is known to have the right to receive or the power to direct the receipt of dividends from or the proceeds from the sale of, the Common Stock. (e) Not applicable. Page 28 of 38 Pages ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO THE SECURITIES OF THE ISSUER. None of the persons identified in Item 2 above is a party to any contract, arrangement, understanding or relationship with respect to any securities of the issuer, except (a) to the extent described in Item 2 and 5 of this Amendment; (b) to the extent described in the next paragraph of this Item 6 and as set forth in Exhibit 1 to this Amendment; and (c) the Equity Registration Rights Agreement attached as Exhibit C to the Statement. On April 1, 1997, Waterfall, on behalf of Morgens Waterfall and the Reporting Persons named in Item 2 above who own Common Stock, issued a letter and accompanying attachments (collectively, the "Letter") stating, among other things, that subject to the terms and conditions set forth in the Letter, such Reporting Persons are willing to offer to Allen Paulson or to an entity he controls an option to purchase the Reporting Persons' respective ownership interests in the Issuer and in Elsinore Corporation, a Nevada corporation. A copy of the Letter is attached as Exhibit 1 to this Amendment and is incorporated by reference into this Item 6. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. EXHIBIT 1 Joint Acquisition Statement among the Reporting Persons dated April 10, 1997, filed pursuant to Rule 13d-1(f)(1) under the Securities Exchange Act of 1934, as amended. EXHIBIT 2 Letter dated April 1, 1997 and attachments thereto issued by Waterfall, on behalf of Morgens Waterfall and the Reporting Persons who own Common Stock, to Jeffries & Company, Inc. EXHIBIT 3 INCORPORATED BY REFERENCE: Power of Attorney, dated December 15, 1993, granted to Morgens and Waterfall by the following parties: Waterfall; Phoenix; MWIP; Betje; Phaeton International N.V.; Morgens, Waterfall, Vintiadis Investments N.V.; the Common Fund; Morgens Waterfall; Restart; Restart II; Restart III; Restart IV, L.P.; Morgens Waterfall, Vintiadis & Co., Inc. Employees' Profit Sharing Plan; and Morgens, for the specific purpose of executing on their behalf any Schedule 13Ds and amendments thereto for filing with the Commission pursuant to the requirements of Rule 13d-1(f) (incorporated by reference to Exhibit A of Amendment No. 2 to Schedule 13D filed on December 22, 1993 by Phoenix; Betje; Phaeton International N.V.; Morgens, Waterfall, Vintiadis Investments N.V.; Morgens Waterfall; Morgens; and Waterfall with respect to the common stock, par value $.01 per share, of Sudbury, Inc.). EXHIBIT 4 Power of Attorney, dated April 10, 1997, granted to Morgens and Waterfall by MWV Plan; MW Capital; Prime; Prime II; Prime III; Prime Group IV, L.P.; Prime Group V, L.P.; Prime Inc.; and MW Management for the specific purpose of executing on their behalf any Schedule 13Ds and amendments thereto for filing with the Commission pursuant to the requirements of Rule 13d-1(f) (incorporated by reference to Exhibit 6 of Amendment No. 1 to Schedule 13D filed on April 10, 1997 by MWIP; Restart, Restart II, Restart III; Restart IV, L.P.; Restart V, L.P.; the Common Fund; MWV Plan; Betje; Phoenix; Morgens Waterfall; MW Capital Management; Waterfall; and Morgens with respect to the common stock, par value $.001 per share, of Elsinore Corporation). Page 29 of 38 Pages SIGNATURES After reasonable inquiry and to the best knowledge and belief of each of the Reporting Persons, each such person or entity certifies that the information set forth in this statement is true, complete and correct and agrees that this statement is filed on behalf of each of them. The Reporting Persons listed herein s/Bruce Waterfall Dated: April 10, 1997 By: ___________________________________ John C. "Bruce" Waterfall, on his own behalf and as attorney-in-fact for each of the other Reporting Persons Page 30 of 38 Pages EX-99 2 EXHIBIT 1 JOINT ACQUISITION STATEMENT PURSUANT TO RULE 13d-1(f)(1) The undersigned acknowledge and agree that the foregoing Amendment No. 1 to the statement on Schedule 13D is filed on behalf of each of the undersigned and that all subsequent amendments to the statement on Schedule 13D shall be filed on behalf of each of the undersigned without the necessity of filing additional joint acquisition statements. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning it contained therein, but shall not be responsible for the completeness and accuracy of the information concerning the others, except to the extent that it knows or has reason to believe that such information is inaccurate. The Reporting Persons listed herein Dated: April 10, 1997 By: /s/ Bruce Waterfall ___________________________________ John C. "Bruce" Waterfall, on his own and as attorney-in-fact for each of the other Reporting Persons Page 31 of 38 Pages EX-99 3 EXHIBIT 2 MORGENS, WATERFALL, VINTIADIS & COMPANY, INC. April 1, 1997 Jefferies & Company, Inc. 11100 Santa Monica Boulevard 10th Floor Los Angeles, CA 90025 Attention: Brent Stevens Dear Sirs: This letter will confirm that certain investment advisory accounts managed by Morgens, Waterfall, Vintiadis & Co., are willing to offer an option to purchase the shares of Riviera Holding[s] Corporation owned by them to an entity to be formed by Allen Paulson on substantially the terms attached hereto. This offer shall be subject to the negotiation, preparation, mutual execution and delivery of a definitive option agreement satisfactory to us. The attached term sheet is not intended and should not be construed to constitute a complete statement of, or as a legal[,] binding or enforceable contract, agreement or commitment on the part of the undersigned. Sincerely, s/Bruce Waterfall Page 32 of 38 Pages TERM SHEET (FOR DISCUSSION PURPOSES ONLY - APRIL 1, 1997) A. Parties: NewCo, an entity controlled by Mr. Allen Paulson (collectively, "Purchaser"); certain advisory clients of Morgens, Waterfall, Vintiadis & Company, Inc. (collectively, "Morgens Waterfall"); Stein Roe & Farnham, Incorporated as advisor ("Stein Roe"); and Sun Life Insurance Company ("Sun Life" and, together with Morgens Waterfall and Stein Roe, "Seller"). B. Stock to be Acquired: Acquisition by Purchaser of all 1,272,560 [Riviera Holdings Corporation, hereinafter "R. Corp"] shares held by Morgens Waterfall representing approximately 24% of R. Corp. calculated on a fully diluted basis, all 857,160 R. Corp. shares held by Stein Roe representing approximately 17% of R. Corp. calculated on a fully diluted basis, and all 761,920 R. Corp. shares held by Sun Life representing approximately 15% of R. Corp. calculated on a fully diluted basis (collectively, the "Shares"). C. Purchase Price: Cash purchase price (the "Purchase Price") equal to $15 per share (less all dividends other than stock dividends and subject to adjustment for other distributions, stock splits, stock dividends, share issuances below the Purchase Price on a per share basis or repurchases and certain other changes to capitalization, in each case mutually agreeable to the parties). The Purchase Price shall be allocated as follows: (i) in the case of Morgens Waterfall, $19,088,400; (ii) in the case of Stein Roe, $12,857,400; and (iii) in the case of Sun Life, $11,428,800. D. Option Price/Period: Subject to approval by the Board of Directors of R. Corp., Purchaser and Seller shall, on or before April 30, 1997, enter into an option agreement (the "Option Agreement") granting Purchaser or its nominee the option to purchase all of the Shares (the "Option"). Purchaser shall post a clean, irrevocable letter of credit issued by an issuer acceptable to Seller upon terms and conditions acceptable to Seller and payable upon presentation of a sight draft by Seller ("L/C"), on the date of Purchaser's execution and delivery of the Option Agreement to Seller (the "Commencement Date"), calculated at 20% of the Purchase Price. The L/C shall be allocated as follows: (i) in the case of Morgens Waterfall, $3,817,680; (ii) in the case of Stein Roe, $2,571,480; and (iii) in the case of Sun Life, $2,285,760. The L/C shall be unconditionally payable upon expiration of the Option except if Refund Events (as defined below) occur. "Refund Events" mean (i) Purchaser's inability to acquire, on terms set forth in the Option Agreement, options to acquire that number of shares which, when exercised and combined with the number of R. Corp. shares Page 33 of 38 Pages currently owned by Purchaser or its affiliates, will equal at least 60% of the issued and outstanding shares of R. Corp. or (ii) breach by the Seller of any covenant contemplated hereby. The Option shall be exercisable in whole, but not in part until the earlier of (x) April 1, 1998 or (y) eight weeks from the date on which all necessary regulatory approvals, including licensing or finding of suitability of Purchaser by the Nevada Gaming Commission, approval of changes of control of R. Corp. by the Nevada Gaming Commission, Hart-Scott- Rodino approvals, and any necessary third party consents (collectively, the "Approvals"), have been obtained without any burdensome conditions or effect. The option will not be exercisable, if in so doing such exercise would be a violation of applicable law. The Option shall be exercisable thereafter until the earlier of (x) April 1, 1998 or (y) eight weeks from the date that all Approvals have been obtained. During the period from the Commencement Date until the closing of the transactions contemplated hereby (the "Closing") or the expiration of the Option, Purchaser shall make to Seller monthly non- refundable payments of interest at the rate of 10% per annum on the Purchase Price. The Closing shall take place on the earlier of (1) April 1, 1998 or (2) eight weeks from the date on which all Approvals have been obtained. E. Exclusivity: From the Commencement Date until the Closing or expiration of the Option, neither Seller nor any of its respective affiliates or representatives shall solicit, initiate, encourage or participate in discussions concerning any proposal or offer from any person or entity relating to any acquisition or purchase of all or a material amount of the assets of, or any equity interest in, R. Corp., or any merger, consolidation or business combination with R. Corp. R. Corp. shall not be deemed an affiliate or representative of Seller for purposes of the foregoing restriction. Seller shall enter into customary voting agreements. F. Publicity: No party hereto shall make any public announcement with respect to the subject matter hereof without the consent of the other parties hereto except to the extent such public announcement may be required by applicable law. G. Fees and Expenses: All reasonable out of pocket fees and expenses including, without limitation, commissions, legal fees and expenses arising in connection with the transaction contemplated hereby shall be paid by Purchaser promptly upon receipt of reasonably detailed statements therefor. Page 34 of 38 Pages TERM SHEET (FOR DISCUSSION PURPOSES ONLY - APRIL 1, 1997) A. Parties: NewCo, an entity controlled by Mr. Allen Paulson (collectively "Purchaser"), and certain advisory clients of Morgens, Waterfall, Vintiadis & Company, Inc. (collectively "Seller"). B. Basic Structure: Acquisition of all 4,646,440 of the [Elsinore Corporation, hereinafter, "E. Corp."] Shares held by Seller representing 94.3% of the currently issued and outstanding common stock of E. Corp. (the "Shares"). C. Purchase Price: Cash purchase price (the "Purchase Price") equal to $3.10 per share (less all dividends other than stock dividends and subject to adjustment for other distributions, stock splits, stock dividends, share issuances below the Purchase Price on a per share basis or repurchases and certain other changes to capitalization, in each case mutually agreeable to the parties). - See Schedule A. D. Option Price/Period: Subject to approval by the Board of Directors of E. Corp. (to the extent required by applicable law), Purchaser and Seller shall, on or before April 30, 1997, enter into an option agreement (the "Option Agreement") granting Purchaser or its nominee the option to purchase all of the Shares (the "Option"). Purchaser shall post a clean, irrevocable letter of credit issued by an issuer acceptable to Seller upon terms and conditions acceptable to Seller and payable upon presentation of a sight draft by Seller ("L/C"), on the date of Purchaser's execution and delivery of the Option Agreement to Seller (the "Commencement Date"), calculated at 20% of the Remaining Equity Value (as defined in Schedule A). The L/C shall be unconditionally payable upon expiration of the Option except if Refund Events (as defined below) occur. "Refund Events" mean (i) Purchaser's inability to acquire, on terms set forth in the Option Agreement, options to acquire that number of shares which, when exercised and combined with the number of R. Corp. shares currently owned by Purchaser or its affiliates, will equal at least 60% of the issued and outstanding shares of R. Corp. or (ii) breach by the Seller of any covenant contemplated hereby. The Option shall be exercisable until the earlier of (x) April 1, 1998 or (y) eight weeks from the date on which all necessary regulatory approvals, including licensing or finding of suitability of Purchaser by the Nevada Gaming Commission, approval of changes of control of E. Corp. by the Nevada Gaming Commission, Hart-Scott-Rodino approvals, and any necessary third party consents (collectively, the "Approvals"), have been obtained without any burdensome conditions or effect. The Option will not be exercisable, if in so doing such exercise would be a violation of applicable law. The Option shall be exercisable thereafter until the earlier of (x) April 1, 1998 or (y) eight weeks from the date that all Approvals have been obtained. Page 35 of 38 Pages TERM SHEET (FOR DISCUSSION PURPOSES ONLY - APRIL 1, 1997) During the period from the Commencement Date until the closing of the transactions contemplated hereby (the "Closing") or the expiration of the Option, Purchaser shall make to Seller monthly non-refundable payments of interest at the rate of 10% per annum on the Remaining Equity Value. The Closing shall take place on the earlier of (1) April 1, 1998 or (2) eight weeks from the date on which all Approvals have been obtained. E. Undertaking as to Certain Future Events: Subject to agreed upon exceptions, Purchaser shall provide an undertaking that if, within a time period to be agreed upon not exceeding two years following the Closing, (i) E. Corp. is a party to a merger, consolidation or other business combination (each, a "Transaction") with Purchaser or an affiliate of Purchaser, or (ii) Purchaser or an affiliate of Purchaser makes an offer ("Offer") to purchase any of the outstanding shares of E. Corp. common stock held by persons who are not affiliated with Purchaser (the "Remaining Stock"), the per share consideration paid to the holders of the Remaining Stock in the Transaction or the per share price of the Offer, as the case may be, shall not be less than the per share Purchase Price. F. Exclusivity: Neither Seller nor any of its respective affiliates or representatives shall solicit, initiate, encourage or participate in discussions concerning any proposal or offer from any person or entity relating to any acquisition or purchase of all or a material amount of the assets of, or any equity interest in, E. Corp. or any merger, consolidation or business combination with E. Corp. E. Corp. shall not be deemed an affiliate or representative of Seller for purposes of the foregoing restriction. Purchaser and Seller shall enter into customary voting agreements and a mutually agreed upon lock-up. G. Publicity: Neither party shall make any public announcement with respect to the subject matter hereof without the consent of the other party hereto except to the extent such public announcement may be required by applicable law. H. Fees and Expenses: All reasonable out of pocket fees and expenses including, without limitation, commissions, legal fees and expenses arising in connection with the transaction contemplated hereby shall be paid by Purchaser promptly upon receipt of reasonably detailed statements therefor. Page 36 of 38 Pages TERM SHEET (FOR DISCUSSION PURPOSES ONLY - APRIL 1, 1997) Schedule A ---------- E. Corp. Adjusted Enterprise Value. . . . . $ 55.30 Total Debt as of Confirmation Date(1). . . 38.00 Implied Equity Value(1). . . . . . . . . 17.30 Less: Option Value. . . . . . . . . . . . 2.00 ---------- Remaining Equity Value. . . . . . . . . . . $ 15.30 ---------- Shares Outstanding. . . . . . . . . . . . . 4,929,313 Price Per Share(1). . . . . . . . . . . . . $ 3.10 Option Value Calculation: Equity Value. . . . . . . . . . . . . . . 17.30 Strike price. . . . . . . . . . . . . . . 5.00 (Per option agree- ---------- ment, strike price is equal to the greater Gross Option Value. . . . . . . . . . . . 12.30 of Book Value per share or $5.00[]) Percentage. . . . . . . . . . . . . . . . 16.7% Value to R. Corp. . . . . . . . . . . . . $ 2.00 _________________________ (1) Subject to adjustment based on actual total debt outstanding at April 1, 1997 and settlement of option interpretation. Page 37 of 38 Pages EX-99 4 EXHIBIT 4 POWER OF ATTORNEY The undersigned hereby appoint Edwin H. Morgens and John C. "Bruce" Waterfall each with full power of substitution, as their attorneys-in-fact for the specific purpose of executing on their behalf any Schedule 13Ds and amendments thereto for filing with the Securities and Exchange Commission pursuant to the requirements of Rule 13d-1(f) under the Securities Exchange Act of 1934, as amended. The undersigned hereby ratify the execution on their behalf, prior to the date hereof, by Edwin H. Morgens or John C. "Bruce" Waterfall of any Schedule 13Ds or amendments thereto for the aforesaid purpose. IN WITNESS WHEREOF, the undersigned have caused this Power of Attorney to be duly executed as of April 10, 1997. MWV EMPLOYEE RETIREMENT PLAN GROUP TRUST MW CAPITAL, L.L.C. PRIME GROUP, L.P. PRIME GROUP II, L.P. PRIME GROUP III, L.P. s/David Ericson PRIME GROUP IV, L.P. By: ______________________________ PRIME GROUP V, L.P. David Ericson, Trustee PRIME, INC. MW MANAGEMENT, L.L.C. s/Dan Levinson s/Bruce Waterfall By: ______________________________ By: _________________________ Dan Levinson, Trustee John C. "Bruce" Waterfall as (i) managing member of MW Capital, L.L.C.; s/John C. Raphael (ii) President of Prime, By: ______________________________ Inc., as general partner John C. Raphael, Trustee of Prime Group, L.P., Prime Group II, L.P., s/Joann McNiff Prime Group, III, L.P., By: ______________________________ Prime Group IV, L.P. and Joann McNiff, Trustee Prime Group V, L.P.; and (iii) managing member of MW Management, L.L.C. s/Stephanie Catlett By: ______________________________ Stephanie Catlett, Trustee Page 38 of 38 Pages -----END PRIVACY-ENHANCED MESSAGE-----