SC 13D/A 1 srt13d1.txt AMENDMENT NO. 1 TO 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D (Rule 13d-101) Under the Securities Exchange Act of 1934 (Amendment No. 1) SR Telecom Inc. -------------------- -------------------- -------------------- -------------------- (Name of Issuer) Common Shares, No Par Value -------------------- -------------------- -------------------- -------------------- (Title of Class of Securities) 78464P208 -------------------- -------------------- ----------- (CUSIP Number) Wendy Schnipper Clayton, Esq. DDJ Capital Management, LLC 141 Linden Street, Suite 4 Wellesley, MA 02482-7910 781-283-8500 -------------------- -------------------- -------------------- -------------------- (Name, address and telephone number of person authorized to receive notices and communications) February 2, 2006 -------------------- -------------------- -------------------- -------------------- (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 [ ]. (Continued on following pages) (Page 1 of 13 Pages) 1 NAME OF REPORTI NG PERSON S.S. OR I.R.S. IDENTIFI CATION NO. OF ABOVE PERSON DDJ Capital Manageme nt, LLC 04- 3300754 2 CHECK THE APPROPR IATE BOX IF A MEMBER OF A GROUP* SEE ITEM #5 (a) [ X ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS* OO 5 CHECK BOX IF DISCLOS URE OF LEGAL PROCEED INGS IS REQUIRE D PURSUAN T TO ITEM 2(d) or 2(e) [ ] 6 CITIZENS HIP OR PLACE OF ORGANIZATION Massachus etts NUMBER OF 7 SOLE VOTING POWER SHARES 262,337,317 BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 9 SOLE DISPOSITIVE POWER REPORTING 262,337,317 PERSON WITH 10 SHARED DISPOSITIVE POWER 11 AG GREGATE AMOUNT BENEFICI ALLY OWNED BY EACH REPORTI NG PERSON 262,337,31 7 12 CHECK BOX IF THE AGGREG ATE AMOUNT IN ROW (11) EXCLUDE S CERTAIN SHARES* [ ] 13 PERCENT OF CLASS REPRESE NTED BY AMOUNT IN ROW (11) 38.58% 14 TYPE OF REPORTI NG PERSON * IA *SEE INSTRUCTIONS BEFORE FILLING OUT! 1 NAME OF REPORTI NG PERSON S.S. OR I.R.S. IDENTIFI CATION NO. OF ABOVE PERSON B IV Capital Partners, L.P. 71- 0882125 2 CHECK THE APPROPR IATE BOX IF A MEMBER OF A GROUP* SEE ITEM #5 (a) [ X ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS* WC 5 CHECK BOX IF DISCLOS URE OF LEGAL PROCEED INGS IS REQUIRE D PURSUAN T TO ITEM 2(d) or 2(e) [ ] 6 CITIZENS HIP OR PLACE OF ORGANIZATION Delaware NUMBER OF 7 SOLE VOTING POWER SHARES 169,789,188 BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 9 SOLE DISPOSITIVE POWER REPORTING 169,789,188 PERSON WITH 10 SHARED DISPOSITIVE POWER 11 AG GREGATE AMOUNT BENEFICI ALLY OWNED BY EACH REPORTI NG PERSON 169,789,18 8 12 CHECK BOX IF THE AGGREG ATE AMOUNT IN ROW (11) EXCLUDE S CERTAIN SHARES* [ ] 13 PERCENT OF CLASS REPRESE NTED BY AMOUNT IN ROW (11) 24.97% 14 TYPE OF REPORTI NG PERSON * PN *SEE INSTRUCTIONS BEFORE FILLING OUT! 1 NAME OF REPORTI NG PERSON S.S. OR I.R.S. IDENTIFI CATION NO. OF ABOVE PERSON GP Capital IV, LLC 04- 3575350 2 CHECK THE APPROPR IATE BOX IF A MEMBER OF A GROUP* SEE ITEM #5 (a) [ X ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS* OO 5 CHECK BOX IF DISCLOS URE OF LEGAL PROCEED INGS IS REQUIRE D PURSUAN T TO ITEM 2(d) or 2(e) [ ] 6 CITIZENS HIP OR PLACE OF ORGANIZATION Delaware NUMBER OF 7 SOLE VOTING POWER SHARES 169,789,188 BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 9 SOLE DISPOSITIVE POWER REPORTING 169,789,188 PERSON WITH 10 SHARED DISPOSITIVE POWER 11 AG GREGATE AMOUNT BENEFICI ALLY OWNED BY EACH REPORTI NG PERSON 169,789,18 8 12 CHECK BOX IF THE AGGREG ATE AMOUNT IN ROW (11) EXCLUDE S CERTAIN SHARES* [ ] 13 PERCENT OF CLASS REPRESE NTED BY AMOUNT IN ROW (11) 24.97% 14 TYPE OF REPORTI NG PERSON * OO *SEE INSTRUCTIONS BEFORE FILLING OUT! 1 NAME OF REPORTI NG PERSON S.S. OR I.R.S. IDENTIFI CATION NO. OF ABOVE PERSON The October Fund, Limited Partnership 04- 3504882 2 CHECK THE APPROPR IATE BOX IF A MEMBER OF A GROUP* SEE ITEM #5 (a) [ X ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS* OO 5 CHECK BOX IF DISCLOS URE OF LEGAL PROCEED INGS IS REQUIRE D PURSUAN T TO ITEM 2(d) or 2(e) [ ] 6 CITIZENS HIP OR PLACE OF ORGANIZATION Massachus etts NUMBER OF 7 SOLE VOTING POWER SHARES 25,294,295 BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 9 SOLE DISPOSITIVE POWER REPORTING 25,294,295 PERSON WITH 10 SHARED DISPOSITIVE POWER 11 AG GREGATE AMOUNT BENEFICI ALLY OWNED BY EACH REPORTI NG PERSON 25,294,295 12 CHECK BOX IF THE AGGREG ATE AMOUNT IN ROW (11) EXCLUDE S CERTAIN SHARES* [ ] 13 PERCENT OF CLASS REPRESE NTED BY AMOUNT IN ROW (11) 3.72% 14 TYPE OF REPORTI NG PERSON * OO *SEE INSTRUCTIONS BEFORE FILLING OUT! 1 NAME OF REPORTI NG PERSON S.S. OR I.R.S. IDENTIFI CATION NO. OF ABOVE PERSON October G.P., LLC 04- 3504881 2 CHECK THE APPROPR IATE BOX IF A MEMBER OF A GROUP* SEE ITEM #5 (a) [ X ] (b) [ ] 3 SEC USE ONLY 4 SOURCE OF FUNDS* OO 5 CHECK BOX IF DISCLOS URE OF LEGAL PROCEED INGS IS REQUIRE D PURSUAN T TO ITEM 2(d) or 2(e) [ ] 6 CITIZENS HIP OR PLACE OF ORGANIZATION Delaware NUMBER OF 7 SOLE VOTING POWER SHARES 25,294,295 BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 9 SOLE DISPOSITIVE POWER REPORTING 25,294,295 PERSON WITH 10 SHARED DISPOSITIVE POWER 11 AG GREGATE AMOUNT BENEFICI ALLY OWNED BY EACH REPORTI NG PERSON 25,294,295 12 CHECK BOX IF THE AGGREG ATE AMOUNT IN ROW (11) EXCLUDE S CERTAIN SHARES* [ ] 13 PERCENT OF CLASS REPRESE NTED BY AMOUNT IN ROW (11) 3.72% 14 TYPE OF REPORTI NG PERSON * OO *SEE INSTRUCTIONS BEFORE FILLING OUT! This Amendment No. 1 to Schedule 13D ("Amendment No. 1") should be read in conjunction with the Schedule 13D dated October 3, 2005 ("Schedule 13D") as filed with the Securities and Exchange Commission by DDJ Capital Management, LLC, a Massachusetts limited liability company, and certain affiliates (collectively, the "DDJ Affiliates"). This Amendment No. 1 amends the Schedule 13D only with respect to those items below. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto on the Schedule 13D. This Amendment No.1 and the Schedule 13D have been filed with the Securities and Exchange Commission by the Reporting Persons (as defined below) to report beneficial ownership of common shares, no par value (the "Shares") of SR Telecom Inc. (the "Issuer"). This filing of Amendment No.1 and the Schedule 13D is not, and should not be deemed to be, an admission that the Schedule 13D or any Amendment thereto is required to be filed. ITEM 1. SECURIT Y AND ISSUER: This Amendment No.1 and Schedule 13D relates to the Shares. ITEM 3. SO UR CE S AN D A M OU NT OF FU ND S OR OT HE R CO NS ID ER AT IO N: Item 3 is ame nde d by add ing the foll owi ng par agr aph . On January 24, 2006, the Issuer entered into separate Share Purchase Agreements with certain existing holders of the New Debentures (collectively, the "Purchasers"), including the DDJ Affiliates, pursuant to which the Issuer agreed to issue to the Purchasers an aggregate of 333,333,333 Shares for an aggregate purchase price of CDN$50,000,000, or $.15 per Common Share (the "Transaction"). In connection with the Transaction, the DDJ Affiliates agreed to purchase in the aggregate 141,356,217 Shares for an aggregate purchase price of CDN$21,203,432. On February 2, 2006, the conditions precedent to the Transaction were satisfied and the Transaction closed. In connection with the Transaction, in addition to the purchase of an aggregate of 333,333,333 Shares, each of the Purchasers, including the DDJ Affiliates, agreed to convert their outstanding New Debentures into Shares in accordance with the conversion provisions of the New Debentures. Prior to the Transaction, B IV owned 79,358,764 Shares (including 69,001,668 Shares issuable upon the exercise of outstanding New Debentures); October owned 11,375,785 Shares (including 9,891,134 Shares issuable upon the exercise of the New Debentures); the Account owned 5,562,294 Shares (including 4,836,361 Shares issuable upon the exercise of the New Debentures); and DDJ Canadian owned 24,684,257 Shares (including 21,462,720 Shares issuable upon the exercise of the New Debentures). Subsequent to the Transaction, and after giving effect to the conversion of their New Debentures into additional Shares, DDJ and the DDJ Affiliates in the aggregate may be deemed to beneficially own the 262,337,317 Shares. In addition, B IV may be deemed to beneficially own a total of 169,789,188 Shares, and October may be deemed to beneficially own a total of 25,294,295 Shares. ITEM 5. INTERES T IN SECURITIES OF ISSUER: Paragraph (a) in Item 5 is deleted in its entirety and amended as set forth below. (a) B IV owns, and GP Capital IV, LLC and DDJ beneficially own, as general partner and investment manager, respectively, of B IV, 169,789,188 Shares, or approximately 24.97% of the outstanding Shares of the Issuer. October owns, and October G.P., LLC and DDJ beneficially own, as general partner and investment manager, respectively, of October, 25,294,295 Shares, or approximately 3.72% of the outstanding Shares of the Issuer. DDJ, as investment manager to B IV, October and the Account, and as investment advisor to DDJ Canadian, may be deemed to beneficially own 262,337,317 Shares, or approximately 38.58% of the outstanding Shares of the Issuer. ITEM 6. CONTRA CTS, ARRANGEMEN TS, UNDERSTANDI NGS OR RELATIONSHIP S WITH RESPECT TO SECURITIES OF THE ISSUER Item 6 is amended by adding the following: Debenture Registration Rights Agreement The DDJ Affiliates (as well as certain other Purchasers) are party to a registration rights agreement dated as of August 22, 2005, pursuant to which the Issuer granted certain holders of the New Debentures registration rights in the United States (the "Debenture Registration Rights Agreement"). Pursuant to the Debenture Registration Rights Agreement, the Issuer agreed to file and use its reasonable best efforts to keep effective, a shelf registration statement for the registration of New Debentures and the underlying Shares. After the expiration of the applicable holding period, the DDJ Affiliates have the right to make two demand registrations on Form F-1, provided that the reasonably anticipated gross proceeds to be raised (before any underwriting discounts and commissions) equal or exceed U.S.$2,000,000, a nd unlimited demand registrations on Form F-3 (or similar short form registration forms), provided that with respect to registrations on Form F-3 (or similar short form registration forms), the reasonably anticipated aggregate gross proceeds to be raised (before any underwriting discounts and commissions) equal or exceed U.S.$1,000 ,000. In addition, on August 22, 2005, the DDJ Affiliates were granted registration rights in Canada for the New Debentures and the underlying Shares if the DDJ Affiliates are considered a "control person" for the purposes of Canadian securities legislation. Common Stock Registration Rights Agreement The DDJ Affiliates are party to a registration rights agreement dated as of February 2, 2006, pursuant to which the Issuer granted certain Purchasers, including the DDJ Affiliates, registration rights in the United States (the "Common Stock Registration Rights Agreement"). Pursuant to the Common Stock Registration Rights Agreement, the DDJ Affiliates will have the right to make two demand registrations on Form F-1, provided that the reasonably anticipated gross proceeds to be raised (before any underwriting discounts and commissions) equal or exceed U.S.$2,000,000, a nd unlimited demand registrations on Form F-3 (or similar short form registration forms), provided that with respect to registrations on Form F-3 (or similar short form registration forms), the reasonably anticipated aggregate gross proceeds to be raised (before any underwriting discounts and commissions) would be equal to or exceed U.S.$1,000 ,000. In addition, on February 2, 2006, the DDJ Affiliates were granted registration rights in Canada for the Shares if DDJ is considered a "control person" for the purposes of Canadian securities legislation. Signature: ======== After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. DDJ CAPITAL MANAGEMENT, LLC By: /s/ Joshua L. McCarthy Joshua L. McCarthy Attorney- in-Fact* B IV CAPITAL PARTNERS, L.P. By: GP Capital IV, LLC, its General Partner By: DDJ Capital Management, LLC, Manager By: /s/ Joshua L. McCarthy Joshua L. McCarthy Attorney- in-Fact* GP CAPITAL IV, LLC By: DDJ Capital Management, LLC, Manager By: /s/ Joshua L. McCarthy Joshua L. McCarthy Attorney- in-Fact* THE OCTOBER FUND, LIMITED PARTNERSHIP By: October G.P., LLC, its General Partner By: DDJ Capital Management, LLC, Manager By: /s/ Joshua L. McCarthy Joshua L. McCarthy Attorney- in-Fact* OCTOBER G.P., LLC By: DDJ Capital Management, LLC, Manager By: /s/ Joshua L. McCarthy Joshua L. McCarthy Attorney- in-Fact* * Limited Power of attorney filed as Exhibit B to Schedule 13D filed on October 3, 2005 ANNEX A =========== The name and present principal occupation or employment of each executive officer and member of DDJ Capital Management, LLC and each director of the DDJ Affiliates are set forth below. The business address of each person and the address of the corporation or organization in which such employment is conducted is 141 Linden Street, Suite 4, Wellesley, MA 02482. Mr. Breazzano and Ms. Mencher are U.S. citizens. NAME PRINCIPAL OCCUPATION OR EMPLOYMENT ============= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = David J. B r e a z z a n o P r i n c i p a l o f D D J C a p i t a l M a n a g e m e n t , L L C , a n d o t h e r a c t i v i t i e s a c t i n g o n b e h a l f o f t h e D D J A f f i l i a t e s Judy K. M e n c h e r P r i n c i p a l o f D D J C a p i t a l M a n a g e m e n t , L L C , a n d o t h e r a c t i v i t i e s a c t i n g o n b e h a l f o f t h e D D J A f f i l i a t e s EXHIBIT INDEX The Exhibit Index is amended so as to include the following documents. 1. Canadian Registration Rights Agreement dated as of August 22, 2005 between SR Telecom Inc. and DDJ Capital Management, LLC. (incorporated by reference to Exhibit 4.3 to the Issuer's Form F-1 filed on October 14, 2005) 2. U.S. Registration Rights Agreement dated as of August 22, 2005 among SR Telecom Inc. and the 10% Convertible Debenture holders specified therein. (incorporated by reference to Exhibit 4.4 to the Issuer's Form F-1 filed on October 14, 2005) 3. Canadian Registration Rights Agreement dated as of February 1, 2006 between SR Telecom Inc. and DDJ Capital Management, LLC (incorporated by reference to Exhibit 11 to the Issuer's Form 6-K filed on February 3, 2006.) 4. U.S. Registration Rights Agreement dated as of February 1, 2006 among SR Telecom Inc. and the holders specified therein (incorporated by reference to Exhibit 12 to the Issuer's Form 6-K filed on February 3, 2006.) SCHEDULE 13D CUSIP NO. 78464P208 PAGE 14 OF 13 PAGES SCHEDULE 13D CUSIP NO. 78464P208 PAGE 15 OF 13 PAGES AGSH&F Comments 1/31/06