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SCHEDULE 13D
(AMENDMENT NO. 2)
Under the Securities Exchange Act of 1934
PRG-SCHULTZ INTERNATIONAL, INC.
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(Name of Company)
Common Stock
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(Title of Class of Securities)
69357C107
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(CUSIP Number of Class of Securities)
Andre Weiss, Esq.
Schulte Roth & Zabel LLP
919 Third Avenue
New York, New York 10022
(212) 756-2431
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
February 1, 2006
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(Date of Event which Requires
Filing of this Schedule)
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 ss.ss.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 ss.240.13d-7 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).
SCHEDULE 13D
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CUSIP NO. 69357C107 PAGE 2 OF 10 PAGES
------------------------------------- ------------------------
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Tenor Opportunity Master Fund Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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7 SOLE VOTING POWER
0
NUMBER OF ---------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 533,591 shares issuable upon conversion of notes
EACH and payable as shares of interest under the
REPORTING notes (see Item 3)
PERSON WITH ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
---------------------------------------------------------
10 SHARED DISPOSITIVE POWER
533,591 shares issuable upon conversion of notes
and payable as shares of interest under the
notes (see Item 3)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
533,591 shares issuable upon conversion of notes and payable as
shares of interest under the notes (see Item 3)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES*
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
0.8% (see Item 5)
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14 TYPE OF REPORTING PERSON*
CO
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SCHEDULE 13D
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CUSIP NO. 69357C107 PAGE 3 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Tenor Capital Management Co., L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
NUMBER OF ---------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 0
EACH ---------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH
0
---------------------------------------------------------
10 SHARED DISPOSITIVE POWER
533,591 shares issuable upon conversion of notes
and payable as shares of interest under the
notes (see Item 3)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
533,591 shares issuable upon conversion of notes and payable as
shares of interest under the notes (see Item 3)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
0.8% (see Item 5)
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14 TYPE OF REPORTING PERSON*
PN
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SCHEDULE 13D
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CUSIP NO. 69357C107 PAGE 4 OF 10 PAGES
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Robin R. Shah
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
0
NUMBER OF ---------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 533,591 shares issuable upon conversion of notes
EACH and payable as shares of interest under the
REPORTING notes (see Item 3)
PERSON WITH ---------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
---------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
533,591 shares issuable upon conversion of notes and payable as
shares of interest under the notes (see Item 3)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.8% (see Item 5)
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14 TYPE OF REPORTING PERSON*
IN
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This Amendment No. 2 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission on December 12, 2005 by Tenor
Opportunity Master Fund Ltd., an exempted company organized under the laws of
the Cayman Islands ("Tenor"), Tenor Capital Management Co., L.P., a Delaware
limited partnership and Robin R. Shah (collectively, the "Reporting Persons").
This amendment to the Schedule 13D relates to the shares of Common Stock (the
"Shares") of PRG-Schultz International, Inc., a Georgia corporation (the
"Company"). The following amendments to the Schedule 13D are hereby made. Unless
otherwise defined herein, all capitalized terms shall have the meanings ascribed
to them in the Schedule 13D.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 of the Schedule 13D is hereby supplemented by the following:
On February 1, 2006, Tenor entered into an Amended and Restated
Restructuring Support Agreement (the "Amended and Restated Restructuring Support
Agreement") with the Company and the other members of the Ad Hoc Committee,
which provides, among other things, that the members of the Ad Hoc Committee
will vote their shares in favor of an amendment of the Company's articles of
incorporation to authorize 140 million shares of common stock.. A copy of the
Amended and Restated Restructuring Support Agreement is attached as an exhibit
hereto and incorporated into this Item 4 by reference.
Except as set forth above, the Reporting Persons have no oral or written
agreements, understandings or arrangements with each other or any other person
relating to acquiring, holding, voting or disposing of any securities of the
Company or otherwise with respect to the Company.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE COMPANY.
Item 6 of the Schedule 13D is hereby supplemented by the following:
The Amended and Restated Restructuring Support Agreement is incorporated by
reference into this Item 6.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Joint Filing Agreement dated February 7, 2006.
5. Amended and Restated Restructuring Support Agreement, dated February 1, 2006,
among the Reporting Persons and the Company.
SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief, each
of the undersigned certifies that the information set forth in this statement is
true, complete and correct.
Dated: February 7, 2006
TENOR OPPORTUNITY MASTER FUND, LTD.
By: Tenor Opportunity Associates, LLC,
its Investment Advisor
By: /s/ Robin R. Shah
-------------------------------------
Name: Robin R. Shah
Title: Member
TENOR CAPITAL MANAGEMENT CO., L.P.
By: /s/ Robin R. Shah
-------------------------------------
Name: Robin R. Shah
Title: Partner
By: /s/ Robin R. Shah
-------------------------------------
Name: Robin R. Shah
EXHIBIT INDEX
1. Joint Filing Agreement dated February 7, 2006.
2. Amended and Restated Restructuring Support Agreement, dated February 1, 2006
among the Reporting Persons, the Company and the other members of the Ad Hoc
Committee.
EXHIBIT 1
JOINT FILING UNDERTAKING
The undersigned, being duly authorized thereunto, hereby execute this agreement
as an exhibit to this Schedule 13D to evidence the agreement of the below-named
parties, in accordance with the rules promulgated pursuant to the Securities
Exchange Act of 1934, to file this Schedule jointly on behalf of each such
party.
Dated as of February 7, 2006
TENOR OPPORTUNITY MASTER FUND, LTD.
By: Tenor Opportunity Associates, LLC,
its Investment Advisor
By: /s/ Robin R. Shah
-------------------------------------
Name: Robin R. Shah
Title: Member
TENOR CAPITAL MANAGEMENT CO., L.P.
By: /s/ Robin R. Shah
-------------------------------------
Name: Robin R. Shah
Title: Partner
By: /s/ Robin R. Shah
-------------------------------------
Name: Robin R. Shah