0000072741-01-500136.txt : 20011029 0000072741-01-500136.hdr.sgml : 20011029 ACCESSION NUMBER: 0000072741-01-500136 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20011024 GROUP MEMBERS: MODE 1 COMMUNICATIONS GROUP MEMBERS: NORTHEAST UTILITIES GROUP MEMBERS: NUEI FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: NORTHEAST UTILITIES SYSTEM CENTRAL INDEX KEY: 0000072741 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 042147929 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 174 BRUSH HILL AVE CITY: WEST SPRINGFIELD STATE: MA ZIP: 01090-0010 BUSINESS PHONE: 4137855871 MAIL ADDRESS: STREET 1: 107 SELDON ST CITY: BERLIN STATE: CT ZIP: 06037-1616 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: NEON COMMUNICATIONS INC CENTRAL INDEX KEY: 0001116086 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 043523408 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-59633 FILM NUMBER: 1765180 BUSINESS ADDRESS: STREET 1: 2200 W PARK DR CITY: WESTBOROUGH STATE: MA ZIP: 01581 BUSINESS PHONE: 5086167800 MAIL ADDRESS: STREET 1: 2200 WEST PARK DRIVE CITY: WESTBOROUGH STATE: MA ZIP: 01581 SC 13D 1 neon13d102301.txt NEON SCHEDULE 13D SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 SCHEDULE 13D (Rule 13d-101) UNDER THE SECURITIES EXCHANGE ACT OF 1934 (Amendment No. 2) NEON Communications, Inc. ----------------------------------------------------------------- (Name of Issuer) Common Stock, $.01 par value per share ----------------------------------------------------------------- (Title of Class of Securities) 640 506 10 1 ----------------------------------------------------------------- (CUSIP Number) Jeffrey C. Miller, Esq., Northeast Utilities Service Company, 107 Selden Street, Berlin, Connecticut 06037 (860) 665-3532 ----------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) October 23, 2001 ----------------------------------------------------------------- (Date of Event Which Requires Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13-d- 1(e), 13d-1(f) or 13d-1(g), check the following box . Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. This amended Schedule 13-D is filed in respect of the Schedule 13- D originally filed by Northeast Utilities on September 26, 2000, for the limited purpose of correcting incorrect percentages reported in Item 5 on Amendment No. 1 to such form filed November 9, 2000 and to reflect the subsequent acquisition of convertible securities from the issuer and the disposition of 650,000 shares. 1 NAMES OF REPORTING PERSONS Mode 1 Communications, Inc. I.R.S. IDENTIFICATIN NO. OF ABOVE PERSONS (ENTITIES ONLY) 06-1455488 2 CHECK APPROPRIATE BOX IF A (a) MEMBER OF A GROUP (b) X 3 SEC USE ONLY 4 SOURCE OF FUNDS Acquisition of convertible securities used funds contributed to Mode 1 Communications, Inc., (Mode 1) by its ultimate parent Northeast Utilities (NU). 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) 6 CITIZENSHIP OR PLACE OF ORGANIZATION Connecticut NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: 7 SOLE VOTING POWER None 8 SHARED VOTING POWER 17,987,717 (see Item 5) 9 SOLE DISPOSITIVE POWER None 10 SHARED DISPOSITIVE POWER 6,624,037 (see Item 5) 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 6,624,037 12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES /X/ The amount in Line 11 excludes 11,363,680 shares of which Mode 1 disclaims beneficial ownership. 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 68.8% 14 TYPE OF REPORTING PERSON CO CUSIP No. 640 506 10 1 1 NAMES OF REPORTING PERSONS NU Enterprises, Inc. I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 06-1533877 2 CHECK APPROPRIATE BOX IF A MEMBER (a) OF A GROUP (b) X 3 SEC USE ONLY 4 SOURCE OF FUNDS None 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) 6 CITIZENSHIP OR PLACE OF ORGANIZATION Connecticut NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: 7 SOLE VOTING POWER None 8 SHARED VOTING POWER 17,987,717 (see item 5) 9 SOLE DISPOSITIVE POWER None 10 SHARED DISPOSITIVE POWER 6,624,037 (see Item 5) 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 6,624,037 12 CHECK BOX IF THE AGGREGATE /X/ The amount in Line 11 AMOUNT IN ROW (11) EXCLUDES excludes 11,363,680 shares CERTAIN SHARES of which NU Enterprises, Inc. (NUEI) disclaims beneficial ownership. 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 68.8% 14 TYPE OF REPORTING PERSON CO CUSIP No. 640 506 10 1 1 NAMES OF REPORTING PERSONS Northeast Utilities I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) 04-2147929 2 CHECK APPROPRIATE BOX IF A (a) MEMBER OF A GROUP (b) X 3 SEC USE ONLY 4 SOURCE OF FUNDS None 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) 6 CITIZENSHIP OR PLACE OF Massachusetts ORGANIZATION NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: 7. SOLE VOTING POWER None 8 SHARED VOTING POWER 17,987,717 (see item 5) 9 SOLE DISPOSITIVE POWER None 10 SHARED DISPOSITIVE POWER 6,624,037 (see Item 5) 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 6,624,037 12 CHECK BOX IF THE AGGREGATE /X/ The amount in Line 11 AMOUNT IN ROW (11) EXCLUDES excludes 11,363,680 shares CERTAIN SHARES of which Northeast Utilities disclaims beneficial ownership. 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 68.8 % 14 TYPE OF REPORTING PERSON CO Item 1. Security and Issuer. (a) Class: Common Stock, par value $.01 per share (b) Name of Issuer: NEON Communications, Inc. (c) Address of Issuer's Principal Executive Office: 2200 West Park Drive, Westborough, Massachusetts 01851 Item 2. Identity and Background. SEE ORIGINALLLY FILED SCHEDULE FOR RESPONSES TO ITEM 2 Item 3. Source and Amount of Funds or Other Consideration. On June 15, 2001, Mode 1 purchased an 18% subordinated convertible note due 2008 in the aggregate principal amount of $15,000,000, directly from the issuer, using cash contributed to it by its ultimate parent, NU. The note is convertible into 2,500,000 share of common stock of the issuer. Item 4. Purpose of Transaction. None Item 5. Interest in Securities of the Issuer. (a) and (b). The following table sets forth the aggregate number of shares and percentages of the outstanding shares of common stock of NEON Communications, Inc. (NEON) beneficially owned by Mode 1, and through Mode 1, by NU and NUEI, and by each executive officer, director and controlling person, if any, of Mode 1, NU and NUEI, and, with respect to the knowledge of Mode 1, NU and NUEI, each other party who may be deemed together with Mode 1 to constitute a group. Any of the aforementioned persons whose names do not appear in the table below do not beneficially own any shares of Common Stock of NEON. Except as otherwise noted, each person listed has sole voting and dispositive power over all shares listed opposite its name. Number of shares Percentage of Name of Person beneficially owned outstanding shares+ Mode 1 Communications, Inc. 17,987,717*#@ 68.8% Exelon Ventures Corp. 13,531,917* 51.77% Consolidated Edison Communications, Inc. 13,531,917* 51.77% New England Business Trust 11,079,839# 42.39% NUEI owns all of the issued and outstanding shares of Mode 1, and NU owns all of the issued and outstanding shares of NUEI. Therefore, NU and NUEI are indirect beneficial owners of all of the Shares owned by Mode 1 and share dispositive power to 6,624,037 shares. Pursuant to Section 13(d)(3) under the Securities Exchange Act, Consolidated Edison Communications, Inc. (CEC), Exelon Ventures Corp.(Exelon) and Mode 1 may be deemed to beneficially own the shares of Common Stock of NEON owned by the others (aggregate of 13,531,917 shares) as result of the limited agreement as to voting described in Item 6, below. Pursuant to Section 13(d)(3) under the Securities Exchange Act, New England Business Trust and Mode 1 may be deemed to beneficially own the shares of Common Stock of NEON owned by the other (aggregate of 11,079,839 shares) as result of the limited agreement as to voting described in Item 6, below. According to NEON's most recent Annual Report on Form 10-K, two directors of Mode 1 have legal or beneficial ownership of NEON common stock, as described below: Gary D. Simon beneficially owns 18,896 shares. John H. Forsgren beneficially owns 18,895 shares. ________________ + Percentages are based on an total aggregate of non-diluted shares of 21,335,061 as of June 30, 2001, as supplied by NEON on its quarterly report on Form 10Q, plus an additional 4,800,000 shares issuable upon conversion of notes held by Mode 1 and by Exelon. *Shared voting power as to 13,531,917 shares among Mode 1, Exelon and CEC, for the limited purpose described in Item 6, below. Includes 2,500,000 shares issuable upon conversion by Mode 1 of a note issued by NEON and 2,300,000 shares issuable upon conversion by Exelon of a note issued by NEON. # Shared voting power as to 11,079,839 shares for the limited purpose described in Item 6, below. Includes 2,500,000 shares issuable upon the conversion by Mode 1 of the note issued by NEON. @ Shared voting and dispositive power with NU and NUEI as to 6,624,038 shares owned by Mode 1. Includes 2,500,000 shares issuable upon the conversion by Mode 1 of the note issued by NEON. ________________ (c) On June 15, 2001, Mode 1 purchased an 18% subordinated convertible note due 2008 in the aggregate principal amount of $15,000,000, on which note the principal balance is convertible into shares of common stock of NEON at $6.00 per share, or an aggregate 2,500,000 shares. On August 20, 2001, Mode 1 disposed of 650,000 shares of common stock of NEON through contribution to Northeast Utilities Foundation, Inc. on August 20, 2001. On August 10, 2001, Exelon Enterprises Management, Inc. purchased an 18% subordinated convertible note due 2008 in the aggregate principal amount of $11,500,000, on which note the principal balance is convertible into shares of NEON common stock at $5.00 per share, or an aggregate of 2,300,000 shares. Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. Mode 1, Exelon, CEC (each referred to herein as a "Stockholder" and in the aggregate as "Stockholders") and NEON Communications, Inc. ("NEON") are parties to a Stockholders' Agreement dated as of September 14, 2000 (the "September Stockholders' Agreement") under which the Stockholders agreed to vote all of the shares of Common Stock of NEON owned by them or over which any of them have voting control, so as to fix the numbers of directors of NEON at nine, to elect two directors designated by Mode 1 initially John H. Forsgren and Gary D. Simon, one director designated by Exelon, initially Robert A. Shinn, and one member designated by CEC, initially Peter A. Rust. Each of the Stockholders also agreed not to vote to remove any director designated by any of the other Stockholders, except for bad faith or willful misconduct. Mode 1's right to designate two directors shall be reduced to one in the event its stock ownership is reduced below certain specified levels. On August 10, 2001, the Stockholders amended the September Stockholders' Agreement to delete a provision under which each Stockholder had granted the other Stockholders on a pro rata basis certain rights of first offer with respect to any transfers of shares of common stock of NEON owned by it. On August 30, 2001, Exelon designated Gregory A. Grucchi to serve as its designee on the NEON Board of Directors in place of Robert A. Shinn. In addition, under a certain FiveCom, Inc. Principal Stockholders Agreement (the "CMP Agreement"), dated May 28, 1998 between NU and Central Maine Power Company ("CMP"), Mode 1 and NEON have certain rights to acquire shares of NEON owned by CMP and NEON has certain rights to acquire its shares owned by Mode 1, in each case in the event of a third party offer and upon the occurrence of certain bankruptcy and insolvency events. As of October 19, 2000, the CMP Agreement was amended by a First Amendment to Northeast Optic Network, Inc. Principal Stockholders Agreement. This amendment added Mode 1 and New England Business Trust, an indirect wholly-owned subsidiary of CMP, as parties to the CMP Agreement. The purpose of this amendment was to (i) allow the resale of shares held by the parties pursuant to Rule 144 under the Securities Act of 1933 and (ii) to agree among the parties as to voting of shares for directors. The amendment states that parties to the CMP Agreement agree to vote their shares so as to fix the number of directors of NEON at nine (9), and to elect (i) two members designated by NU, initially John H. Forsgren and Gary D. Simon and (ii) two members designated by NEBT, initially Michael McClain and Michael I. German. Each of the parties also agreed not to vote to remove any director designated by the other party, except for bad faith or willful misconduct. Each party's right to designate two directors is reduced to one in the event its stock ownership is reduced below certain specified levels. Item 7. Material to be Filed as Exhibits. Exhibit A: Stockholders' Agreement dated September 14, 2000* Exhibit B: FiveCom, Inc. Principal Stockholders Agreement* Exhibit C: First Amendment to Northeast Optic Network, Inc. Principal Stockholders Agreement* Exhibit D: Amendment No. 1 to Stockholders' Agreement dated August 10, 2001 * Previously filed _________________ The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 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). Includes 6,907,879 shares beneficially held by others who, together with Mode 1 Communications, Inc., may be held to constitute a group, and 4,455,801 shares beneficially held by others who, together with Mode 1 Communications, Inc., may be held to constitute a group. Includes 6,907,879 shares beneficially held by others who may be held to constitute a group of which subsidiary is a member and 4,455,801 shares beneficially held by others who may be held to constitute a group of which subsidiary is a member. 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. October 23, 2001 /s/ David R. McHale Name: David R. McHale Title: Vice President and Treasurer of Northeast Utilities, on behalf of itself and its subsidiaries, NU Enterprises Inc. and Mode 1 Communications, Inc. EX-99 3 neonexh99102201.txt EXHIBIT D Exhibit D. AMENDMENT NO. 1 TO STOCKHOLDERS' AGREEMENT This AMENDMENT NO. 1 TO STOCKHOLDERS' AGREEMENT, dated August 10, 2001 (the "Amendment No. 1"), is entered into by and among Mode 1 Communications, Inc. ("M1"), Exelon Enterprises Management, Inc., formerly known as Exelon Ventures Corp. ("Exelon"), Consolidated Edison Communications, Inc. ("CEC") and Neon Communications, Inc. (the "Company"). M1, Exelon, and CEC are referred to in this Amendment No. 1 collectively as the "Stockholders." WHEREAS, the Stockholders and the Company entered into a Stockholders' Agreement dated as of September 14, 2000 (the "Stockholders' Agreement") pursuant to which the Stockholders agreed, among other things, to establish reciprocal rights of first offer; and WHEREAS, the parties mutually desire to amend the Stockholders' Agreement to release M1, CEC and Exelon from the mutual rights and obligations provided for in Section 8 of the Stockholders' Agreement; NOW, THEREFORE, in consideration of the foregoing, the Stockholders and the Company agree as follows: 1. Deletion of Section 8 of the Stockholders' Agreement. Section 8 of the Stockholders' Agreement is hereby deleted in its entirety. 2. Full Force and Effect. Except for the amendment described herein, the Stockholders' Agreement shall remain in full force and effect. 3. Successors and Assigns. This Amendment No. 1 shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties hereto. 4. Counterparts. This Amendment No. 1 may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 5. GOVERNING LAW. THIS AMENDMENT NO. 1 SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF ANY JURISDICTION. IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this Amendment No. 1 to the Stockholders' Agreement on the date first written above. MODE 1 COMMUNICATIONS, INC. By: /s/ John H. Forsgren Name: John H. Forsgren Title: Executive Vice President and Chief Financial Officer - Northeast Utilities Service Company, agent for Mode 1 Communications, Inc. EXELON ENTERPRISES MANAGEMENT, INC. By: /s/ Robert A. Shinn Name: Robert A. Shinn Title: President CONSOLIDATED EDISON COMMUNICATIONS, INC. By: /s/ Peter Rust Name: Peter Rust Title: President and CEO NEON COMMUNICATIONS, INC. By: /s/ Stephen E. Courter Name: Stephen E. Courter Title: CEO