-----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, H9hrRyMtkhRJXxH6LiD71kudsGDQGsPLtYztoN5sKFfKRuvMsnj1e9y7R5q5lS5l ZToVeZoHmYAfyrWijbzX6A== 0000950133-98-001354.txt : 19980410 0000950133-98-001354.hdr.sgml : 19980410 ACCESSION NUMBER: 0000950133-98-001354 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980409 SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: RETIREMENT CARE ASSOCIATES INC /CO/ CENTRAL INDEX KEY: 0000798540 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-SKILLED NURSING CARE FACILITIES [8051] IRS NUMBER: 431441789 STATE OF INCORPORATION: CO FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D SEC ACT: SEC FILE NUMBER: 005-50397 FILM NUMBER: 98590981 BUSINESS ADDRESS: STREET 1: 6000 LAKE FORREST DR STE 200 CITY: ATLANTA STATE: GA ZIP: 30328 BUSINESS PHONE: 4042557500 MAIL ADDRESS: STREET 1: 6000 LAKE FORREST DR STREET 2: STE 200 CITY: ATLANTA STATE: GA ZIP: 30328 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: BASIC CAPITAL MANAGEMENT INC CENTRAL INDEX KEY: 0000916476 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 752332719 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 10670 NORTH CENTRAL EXPRESSWAY SUITE600 CITY: DALLAS STATE: TX ZIP: 75231 BUSINESS PHONE: 2146924700 SC 13D 1 SCHEDULE 13D RE: RETIREMENT CARE ASSOCIATES, INC. 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. ____)* RETIREMENT CARE ASSOCIATES, INC. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, $.0001 par value - -------------------------------------------------------------------------------- (Title of Class of Securities) 76129C307 ---------------------------------------------------- (CUSIP Number) Robert A. Waldman 10670 North Central Expressway, Suite 600 Dallas, Texas (214) 692-4700 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) April 8, 1998 ---------------------------------------------------- (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 Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-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 Section 240.13d-7(b) for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). (Continued on the following pages) 2
CUSIP No. 76129C307 SCHEDULE 13D Page 2 of 7 Pages - ------------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON American Realty Trust, Inc. 54-0697989 - ------------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ------------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - ------------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC/OO - ------------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - ------------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Georgia - ------------------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 391,500 BENEFICIALLY -------------------------------------------------------------------------------------------------- OWNED BY 8 SHARED VOTING POWER EACH REPORTING -0- PERSON -------------------------------------------------------------------------------------------------- WITH 9 SOLE DISPOSITIVE POWER 391,500 -------------------------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - ------------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 391,500 - ------------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - ------------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.7% - ------------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------------------------------------------
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CUSIP No. 76129C307 SCHEDULE 13D Page 3 of 7 Pages - ------------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Basic Capital Management, Inc. 75-23322719 - ------------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ------------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - ------------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC/OO - ------------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - ------------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Nevada - ------------------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 385,800 SHARES -------------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH -0- REPORTING -------------------------------------------------------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH 385,800 -------------------------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - ------------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 385,800 - ------------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] - ------------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.6% - ------------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------------------------------------------
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CUSIP No. 76129C307 SCHEDULE 13D Page 4 of 7 Pages - ------------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Davister Corp. 75-2338496 - ------------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ------------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - ------------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC/OO - ------------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - ------------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Nevada - ------------------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 223,700 SHARES -------------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH -0- REPORTING -------------------------------------------------------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH 223,700 -------------------------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - ------------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 223,700 - ------------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - ------------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.5% - ------------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------------------------------------------
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CUSIP No. 76129C307 SCHEDULE 13D Page 5 of 7 Pages - ------------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON International Health Products, Inc. 75-2302531 - ------------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ------------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - ------------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC/OO - ------------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - ------------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Nevada - ------------------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 40,000 SHARES -------------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH -0- REPORTING -------------------------------------------------------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH 40,000 -------------------------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - ------------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 40,000 - ------------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - ------------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) .3% - ------------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------------------------------------------
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CUSIP No. 76129C307 SCHEDULE 13D Page 6 of 7 Pages - ------------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Institutional Capital Corporation 75-2442090 - ------------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ------------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - ------------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC/OO - ------------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - ------------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Nevada - ------------------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 15,000 SHARES ------------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH -0- REPORTING ------------------------------------------------------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH 15,000 ------------------------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - ------------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 15,000 - ------------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - ------------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) .1% - ------------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------------------------------------------
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CUSIP No. 76129C307 SCHEDULE 13D Page 7 of 7 Pages - ------------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Gene E. Phillips - ------------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [X] - ------------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - ------------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS - ------------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ] - ------------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Nevada - ------------------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF -0- SHARES -------------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH -0- REPORTING -------------------------------------------------------------------------------------------------- PERSON 9 SOLE DISPOSITIVE POWER WITH -0- -------------------------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - ------------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON -0- - ------------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X] - ------------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) -0- - ------------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------------------------------------------
8 RETIREMENT CARE ASSOCIATES, INC. CUSIP NO. 761 29C 307 ITEM 1. SECURITY AND ISSUER This statement relates to the Common Stock, $.0001 par value (the "Shares"), of Retirement Care Associates, Inc. (the "Company"). The principal executive offices of the Company are located at 6000 Lake Forrest Drive, Suite 200, Atlanta, Georgia 30828. ITEM 2. IDENTITY AND BACKGROUND This statement is being filed on behalf of American Realty Trust, Inc. ("ART"), Basic Capital Management, Inc. ("BCM"), International Health Products, Inc. ("IHPI"), Davister Corp. ("Davister"), Institutional Capital Corporation ("ICC"), and Gene E. Phillips (collectively, the "Reporting Persons"). BCM owns approximately 49.1% of the outstanding securities of ART and serves as the advisor to ART. BCM is beneficially owned by a trust established for the benefit of the children of Gene E. Phillips (the "May Trust"), who formerly served as Chief Executive Officer (1989 - 1992) and Chairman of the Board of Directors (1989) of BCM, and as Chief Executive Officer (1982 - 1991) and Chairman of the Board of Directors (1984 - 1992) of ART. Although Mr. Phillips no longer serves as an officer or director of BCM or ART, he continues to have substantial contact with the management of BCM and has a significant influence on its advisory services and investment decisions as a representative of the May Trust. In addition, BCM's Securities Manager, who is responsible for the purchase and disposition of securities for BCM, is also an officer of ART and manages investments in securities for ART as well as BCM. IHPI is owned by a separate trust established for the benefit of the wife and children of Gene E. Phillips (the "Martin Trust"). IHPI is managed by F. Terry Shumate, who also manages several other private entities owned by Mr. Phillips or his family trusts. Mr. Shumate consults on a regular basis with Mr. Phillips and/or the Securities Manager for BCM regarding investments in securities made by IHPI. Davister and ICC are each owned by different parties but share the same principal place of business and the same principal office as IHPI. Davister and ICC are managed by the same personnel who manage IHPI and other private companies 9 owned by Gene E. Phillips or his family trusts. These personnel consult on a regular basis with Mr. Phillips and/or the Securities Manager for BCM regarding investments in securities by Davister and ICC. (I) ART is a real estate investment company organized and existing as a Georgia corporation. ART's principal business activities include investments in real estate and in other business ventures. The principal place of business and principal office of ART are located at 10670 North Central Expressway, Suite 300, Dallas, Texas 75231. The following is a list of each executive officer and director of ART:
Name Positions - ---- --------- Oscar W. Cashwell Director Al Gonzalez Director Cliff Harris Director Roy E. Bode Director Karl L. Blaha Director/President Thomas A. Holland Executive Vice President and Chief Financial Officer Bruce A. Endendyk Executive Vice President Randall M. Paulson Executive Vice President Robert A. Waldman Senior Vice President, Secretary and General Counsel Drew D. Potera Vice President and Treasurer
Mr. Cashwell's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Cashwell is a real estate consultant for BCM. Mr. Cashwell is a citizen of the United States of America. Mr. Gonzalez's business address is 4455 Alpha Road, Building 2, Dallas, Texas 75244. Mr. Gonzalez's present 2 10 principal occupation is President of AGE Refining, Inc. Mr. Gonzalez is a citizen of the United States of America. Mr. Harris's business address is 2838 Woodside Street, Dallas, Texas 75204. Mr. Harris's present principal occupation is President of Energy Transfer Group, L.L.C. Mr. Harris is a citizen of the United States of America. Mr. Bode's business address is 2435 E. FM 879, Palmer, Texas 75152. Mr. Bode's present principal occupation is Vice President for Public Affairs at University of Texas Southwestern Medical Center at Dallas. Mr. Bode is a citizen of the United States of America. Mr. Blaha's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Blaha's present principal occupation is Executive Vice President - Commercial Asset Management of BCM. Mr. Blaha is a citizen of the United States of America. Mr. Holland's business address is 10670 North Central Expressway, Suite 600 Dallas, Texas 75231. Mr. Holland's present principal occupation is Executive Vice President and Chief Financial Officer of BCM. Mr. Holland is a citizen of the United States of America. Mr. Endendyk's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Endendyk's present principal occupation is Executive Vice President of BCM. Mr. Endendyk is a citizen of the United States of America. Mr. Paulson's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Paulson's present principal occupation is President of BCM. Mr. Paulson is a citizen of the United States of America. Mr. Waldman's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Waldman's present principal occupation is Senior Vice President, Secretary and General Counsel of BCM. Mr. Waldman is a citizen of the United States of America. Mr. Potera's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Potera's present principal occupation is Vice President and Treasurer of BCM. Mr. Potera is a citizen of the United States of America. 3 11 (II) BCM is a corporation organized and existing under the laws of the State of Nevada. BCM's principal business activity is the provision of advisory services for real estate investment trusts. Its principal place of business and principal office are located at 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. BCM is owned by Realty Advisors, Inc., a Nevada corporation. Realty Advisors, Inc. is owned by a trust established for the benefit of the children of Gene E. Phillips. The directors and executive officers of BCM are as follows:
Name Positions - ---- --------- Ryan T. Phillips Director Mickey Ned Phillips Director Randall M. Paulson President Thomas A. Holland Executive Vice President and Chief Financial Officer Clifford C. Towns, Jr. Executive Vice President - Finance Karl L. Blaha Executive Vice President - Commercial Asset Management Bruce A. Endendyk Executive Vice President A. Cal Rossi, Jr. Executive Vice President Cooper B. Stuart Executive Vice President Dan S. Allred Senior Vice President - Land Development Robert A. Waldman Senior Vice President, General Counsel and Secretary Drew D. Potera Vice President, Treasurer and Securities Manager
Information with respect to Messrs. Paulson, Holland, Blaha, Endendyk, Waldman and Potera is disclosed in (I) above. 4 12 Mr. R. Phillips's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Phillips's present principal occupation is an independent real estate investor. Mr. Phillips is a citizen of the United States of America. Mr. M. Phillips's business address is 264 Rolling Hills Circle, Gaffney, South Carolina 29340. Mr. Phillips's present principal occupation is owner of Phillips Remodeling Co. Mr. Phillips is a citizen of the United States of America. Mr. Towns's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Towns's present principal occupation is Executive Vice President of BCM. Mr. Towns is a citizen of the United States of America. Mr. Rossi's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Rossi's present principal occupation is Executive Vice President of BCM. Mr. Rossi is a citizen of the United States of America. Mr. Stuart's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Stuart's present principal occupation is Executive Vice President of BCM. Mr. Stuart is a citizen of the United States of America. Mr. Allred's business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Allred's present principal occupation is Senior Vice President - Land Development of BCM. Mr. Allred is a citizen of the United States of America. (III) IHPI is a corporation organized and existing under the laws of the State of Nevada. IHPI's principal business activity is investments in real estate and marketable securities. IHPI's principal place of business and its principal office are located at 10670 North Central Expressway, Suite 410, Dallas, Texas 75231. IHPI is owned by the Martin Trust, which was established for the benefit of the wife and children of Gene E. Phillips. The directors and executive officers of IHPI are as follows:
Name Positions - ---- --------- F. Terry Shumate Director, President and Treasurer Mary K. Willett Director and Secretary
5 13 Mr. Shumate's business address is 10670 North Central Expressway, Suite 410, Dallas, Texas 75231. Mr. Shumate's present principal occupation is Vice President of Syntek West, Inc., a private company which is wholly owned by Mr. Gene Phillips. Mr. Shumate is a citizen of the United States of America. Ms. Willett's business address is 10670 North Central Expressway, Suite 410, Dallas, Texas 75231. Ms. Willett's present principal occupation is Controller of Syntek West, Inc. and other private companies owned by Mr. Gene Phillips or his family trusts. Ms. Willett is a citizen of the United States of America. (IV) Davister is a corporation organized and existing under the laws of the State of Nevada. Davister's principal business activity is investments in real estate and marketable securities, and its day-to-day operations are managed by F. Terry Shumate. Its principal place of business and its principal office are located at 10670 North Central Expressway, Suite 410, Dallas, Texas 75231. Davister is owned by a group of eleven individuals. F. Terry Shumate owns 18% of Davister and is the largest shareholder of the company. The directors and executive officers of Davister are as follows:
Name Positions - ---- --------- Ronald F. Akin Director, President, Secretary and Treasurer Ronald F. Bruce Director
Mr. Akin's business address is 10670 North Central Expressway, Suite 405, Dallas, Texas 75231. Mr. Akin's present principal occupation is President of Sunridge Management Group, Inc., a company that provides real estate management services to the various real estate entities advised by BCM as well as other unrelated entities. Mr. Akin is a citizen of the United States of America. Mr. Bruce's business address is 10670 North Central Expressway, Suite 400, Dallas, Texas 75231. Mr. Bruce's present principal occupation is President of Grapat Group Incorporated, a company that provides real estate management services to the real estate entities advised by BCM as well as 6 14 other unrelated entities. Mr. Bruce is a citizen of the United States of America. (V) ICC is a corporation organized and existing under the laws of the State of Nevada. ICC's principal business activity is investments in real estate and marketable securities, and its day-to-day operations are managed by F. Terry Shumate. ICC's principal place of business and its principal office are located at 10670 North Central Expressway, Suite 411, Dallas, Texas 75231. ICC is owned by Electrical Networks, Inc. and Starr Investments. The directors and executive officers of ICC are as follows:
Name Positions - ---- --------- J.T. Tackett Director, Chairman and Chief Executive Officer E. Wayne Starr Director, President and Treasurer
Mr. Tackett's business address is Electrical Networks, Inc., 2521 Weaver Street, Suite A, Fort Worth, Texas 76117. Mr. Tackett's present principal occupation is electrical contractor. Mr. Tackett is a citizen of the United States of America. Mr. Starr's business address is Century 21 -- Starr Associates, Inc., 418 East Cooper Avenue, Suite 202, Aspen, Colorado 81611. Mr. Starr's present principal occupation is real estate investments. Mr. Starr is a citizen of the United States of America. (VI) Gene E. Phillips's principal business address is 10670 North Central Expressway, Suite 600, Dallas, Texas 75231. Mr. Phillips's present principal occupation is investments in real estate. Mr. Phillips is a citizen of the United States of America. During the last five (5) years, (i) none of the persons enumerated in (I) through (VI) above has been convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors) and (ii) none of such persons was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was 7 15 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 violation with respect to such laws. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION The aggregate amount of funds used by ART to purchase Shares of the Company is $4,314,036. The sources of such funds are from ART's working capital and margin loans extended by the broker-dealers disclosed under Item 6 below. The aggregate amount of funds used by BCM to purchase Shares of the Company is $3,982,538. The sources of such funds are from BCM's working capital and margin loans extended by the broker-dealers disclosed under Item 6 below. The aggregate amount of funds used by Davister to purchase Shares of the Company is $2,530,362. The sources of such funds are from Davister's working capital and margin loans extended by the broker-dealers disclosed under Item 6 below. The aggregate amount of funds used by ICC to purchase Shares of the Company is $161,875. The sources of such funds are from ICC's working capital and margin loans extended by the broker-dealers disclosed under Item 6 below. The aggregate amount of funds used by IHPI to purchase Shares of the Company is $406,675. The sources of such funds are from IHPI's working capital and margin loans extended by the broker-dealers disclosed under Item 6 below. ITEM 4. PURPOSE OF TRANSACTION Each of the Reporting Persons owning Shares acquired the Shares described in Item 5 below in order to obtain a significant investment position in the Company. The Reporting Persons have no present plans or proposals to acquire additional Shares of the Company or dispose of any or all of the Shares now owned by the Reporting Persons, but each of the Reporting Persons reserves the right to acquire additional Shares of the Company or dispose of any or all of the Shares of the Company now owned based on such Reporting Person's evaluation of the Company's business prospects and financial condition, the market for Shares of the Company, the availability of other investment opportunities, general 8 16 economic conditions, and other future developments. Any such further purchase or disposition of Shares of the Company may be made in the open market, in privately negotiated transactions, or otherwise. None of the Reporting Persons has any present plan or proposal which relates to or would result in: (a) an extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Company or any of its subsidiaries; (b) a sale or transfer of a material amount of assets of the Company or any of its subsidiaries; (c) any change in the present Board of Directors or management of the Company, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the Board; (d) any material change in the present capitalization or dividend policy of the Company; (e) any other material change in the Company's business or corporate structure; (f) changes in the Company's charter, bylaws or instruments corresponding thereto or other actions which might impede the acquisition of control of the Company by any person; (g) Shares of the Company being delisted from the New York Stock Exchange; (h) a class of equity securities of the Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Securities Exchange Act of 1934; or (i) any action similar to any of those enumerated above. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER (a) Share Ownership 9 17 The following tables show the Shares owned directly and beneficially by the Reporting Persons on the date of this statement:
Shares Owned Directly --------------------- Number Percent of Name of Shares Class (1) - ---- --------- --------- ART 391,500 2.7% BCM 385,700 2.6% IHPI 40,000 .3% Davister 223,700 1.5% ICC 15,000 .1% Total 1,056,000 7.2% Shares Owned Beneficially ------------------------- Number Percent of Name of Shares Class (1) - ---- --------- --------- ART 391,500 2.7% BCM (2) 777,200 5.3% IHPI 40,000 .3% Davister 223,700 1.5% ICC 15,000 .1% Gene E. Phillips (3) 1,056,000 7.2% Total Shares beneficially owned by Reporting Persons 1,056,000 7.2% (1) Percentage calculations are based upon 14,749,441 Shares outstanding on September 30, 1997. (2) May be deemed to be a beneficial owner of the Shares held directly by ART by virtue of the relationship to ART described in Item 2. BCM does not affirm beneficial ownership of such Shares. (3) May be deemed to be a beneficial owner of the Shares held by ART, BCM, IHPI, Davister, and ICC by reason of the relationships with those entities described in Item 2. Mr. Phillips does not affirm beneficial ownership of any of such Shares.
(b) Voting and Disposition Power 10 18 Each of the directors of ART shares voting and disposition power over all of the Shares owned by ART. Each of the directors of BCM shares voting and disposition power over all of the Shares held by BCM. Gene E. Phillips, as a representative of the May Trust, has a significant influence on decisions relating to the purchase and disposition of securities made by BCM and ART. Drew D. Potera, who manages investments in securities made by BCM as the Securities Manager for that entity, also manages investments in securities made by ART as an officer of ART. Mr. Potera's activities at BCM and ART are subject to the oversight of the directors of each of those companies. The directors of BCM and ART have not agreed that these companies will act in concert with each other or with any other Reporting Person with respect to the acquisition or disposition of Shares of the Company. Each of the directors of IHPI shares voting and disposition power over all of the Shares held by IHPI. Each of the directors of Davister shares voting and disposition power over all of the Shares held by Davister. Each of the directors of ICC shares voting and disposition power over all of the Shares owned by ICC. F. Terry Shumate, who is a director of IHPI and makes investments for that entity, also makes investments on behalf of Davister and ICC. Mr. Shumate consults on a regular basis with Gene E. Phillips and/or the Securities Manager for BCM with respect to the purchase and disposition of marketable securities on behalf of IHPI, Davister and ICC. The directors of IHPI, Davister and ICC have not agreed that IHPI, Davister and ICC will act in concert with each other or with any other Reporting Person with respect to the acquisition or disposition of Shares of the Company. (c) Transactions in Securities No transactions in the Shares were effected by the Reporting Persons during the past 60 days. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. ART has pledged 391,500 Shares of the Company to secure margin debt at the following firms in the following amounts: 2,000 Shares to Arnold Securities; 190,500 Shares to Bear 11 19 Stearns & Co., Inc.; 5,000 Shares to Bidwell & Co.; 5,000 Shares to Cowen & Co.; 5,000 Shares to Deutsche Morgan Grenfell; 5,000 Shares to Dain Bosworth; 55,000 Shares to Dean Witter; 10,000 Shares to First Southwest; 5,000 Shares to Legg Mason Wood Walker; 19,000 Shares to May Financial; 10,000 Shares to McDonald & Company; 10,000 Shares to Morgan Keegan & Company, Inc.; 10,000 Shares to Morgan Keegan (Tx); 20,000 Shares to Rauscher Pierce Refsnes, Inc.; 5,000 Shares to Regions Investment Company; 15,000 Shares to Southland Securities Corporation; 10,000 Shares to Principal Financial Securities, Inc.; and 10,000 Shares to Wedbush Morgan Securities. BCM has pledged 385,700 Shares of the Company to secure margin debt at the following firms in the following amounts: 80,500 Shares to Bear Stearns & Co., Inc.; 5,000 Shares to Brown & Co.; 15,000 Shares to Deutsche Morgan Grenfell; 15,000 Shares to Dean Witter; 25,000 Shares to First Southwest; 4,000 Shares to Gruntal & Co.; 7,000 Shares to Hambrecht & Quist LLC; 5,000 Shares to J. C. Bradford & Co.; 18,000 Shares to Legg Mason Wood Walker; 5,000 Shares to May Financial; 10,000 Shares to McDonald & Company; 20,000 Shares to Morgan Keegan (Tx-2); 45,000 Shares to Morgan Keegan (Tx); 49,000 Shares to Rauscher Pierce Refsnes, Inc.; 17,000 Shares to Raymond James Associates, Inc.; 10,200 Shares to Southland Securities Corporation; 30,000 Shares to Principal Financial Securities, Inc.; 5,000 Shares to Wachovia Brokerage; 10,000 Shares to Wedbush Morgan Securities; and 10,000 Shares to Wheat First Butcher Singer. IHPI has pledged 40,000 Shares of the Company to secure margin debt at the following firms in the following amounts: 5,000 Shares to BA Investment Services, Inc.; 5,000 Shares to Cutter & Company, Inc.; 10,000 Shares to Everen Securities; 5,000 Shares to Legg Mason Wood Walker; 10,000 Shares to McDonald & Company; and 5,000 Shares to Principal Financial Securities, Inc. Davister has pledged 223,700 Shares of the Company to secure margin debt at the following firms in the following amounts: 62,500 Shares to Bear Stearns & Co., Inc.; 66,200 Shares to Rauscher Pierce Refsnes, Inc.; and 95,000 Shares to Southland Securities Corporation. ICC has pledged 15,000 Shares of the Company to secure margin debt at the following firms in the following amounts: 5,000 Shares to Hambrecht & Quist LLC; and 10,000 Shares to Rauscher Pierce Refsnes, Inc. 12 20 ITEM 7. MATERIAL TO BE FILED AS EXHIBITS None. 13 21 SIGNATURES After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: April 8, 1998 AMERICAN REALTY TRUST, INC. By: /s/ Karl L. Blaha ------------------------------------- Karl L. Blaha President BASIC CAPITAL MANAGEMENT, INC. By: /s/ Drew D. Potera ------------------------------------- Drew D. Potera Vice President and Treasurer DAVISTER CORP. By: /s/ Ronald F. Akin ------------------------------------- Ronald F. Akin President INSTITUTIONAL CAPITAL CORPORATION By: /s/ E. Wayne Starr ------------------------------------- E. Wayne Starr President 14 22 INTERNATIONAL HEALTH PRODUCTS, INC. By: /s/ F. Terry Shumate ------------------------------------- F. Terry Shumate President GENE E. PHILLIPS /s/ Gene E. Phillips ------------------------------------- 15 -----END PRIVACY-ENHANCED MESSAGE-----