SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
(RULE 13D-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULES 13D-1(B), (C) AND (D) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13D-2
(AMENDMENT NO. 2)*
TERRA INDUSTRIES INC.
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(Name of Issuer)
Common Shares, without par value
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(Title of Class of Securities)
880915103
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(CUSIP Number)
December 31, 2006
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
|X| Rule 13d-1(b)
|_| Rule 13d-1(c)
|_| Rule 13d-1(d)
*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 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).
CUSIP No. 88091513 13G Page 2 of 9 pages
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1 NAME OF REPORTING PERSON Whippoorwill Associates, Incorporated
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [_]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
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5 SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,829,630 (see Item 4(c))
EACH -------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
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8 SHARED DISPOSITIVE POWER
4,829,630 (see Item 4(c))
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,829,630 (see Item 4(c))
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[_]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.04% (see Item 4(b))
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12 TYPE OF REPORTING PERSON
IA; CO
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CUSIP No. 88091513 13G Page 3 of 9 pages
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1 NAME OF REPORTING PERSON Shelley F. Greenhaus
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [_]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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5 SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,829,630 (see Item 4(c))
EACH -------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
-------------------------------------------------------
8 SHARED DISPOSITIVE POWER
4,829,630 (see Item 4(c))
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,829,630 (see Item 4(c))
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[_]
-------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.04% (see Item 4(b))
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12 TYPE OF REPORTING PERSON
IN; HC
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CUSIP No. 88091513 13G Page 4 of 9 pages
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1 NAME OF REPORTING PERSON David A. Strumwasser
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [_]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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5 SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,829,630 (see Item 4(c))
EACH -------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
-------------------------------------------------------
8 SHARED DISPOSITIVE POWER
4,829,630 (see Item 4(c))
-------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,829,630 (see Item 4(c))
-------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[_]
-------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.04% (see Item 4(b))
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12 TYPE OF REPORTING PERSON
IN; HC
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*SEE INSTRUCTION BEFORE FILLING OUT!
CUSIP No. 88091513 13G Page 5 of 9 pages
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1 NAME OF REPORTING PERSON Steven K. Gendal
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [_]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
-------------------------------------------------------------------------------
5 SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------------
SHARES 6 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 4,829,630 (see Item 4(c))
EACH -------------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON
WITH 0
-------------------------------------------------------
8 SHARED DISPOSITIVE POWER
4,829,630 (see Item 4(c))
-------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,829,630 (see Item 4(c))
-------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[_]
-------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.04% (see Item 4(b))
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12 TYPE OF REPORTING PERSON
IN; HC
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*SEE INSTRUCTION BEFORE FILLING OUT!
This statement on Schedule 13G (this "Statement") is being filed by
Whippoorwill Associates, Incorporated ("Whippoorwill") and relates to the Common
Shares, without par value (the "Common Shares"), of Terra Industries Inc., a
Maryland corporation (the "Issuer").
ITEM 1(A). NAME OF ISSUER:
Terra Industries Inc.
ITEM 1(B). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
Terra Centre
P.O. Box 6000
600 Fourth Street
Sioux City, Iowa 51102-6000
ITEM 2(A). NAME OF PERSON FILING:
Whippoorwill Associates, Incorporated; Shelley F. Greenhaus ("Mr.
Greenhaus"), as Principal and President of Whippoorwill; David A.
Strumwasser ("Mr. Strumwasser"), as Principal of Whippoorwill; Steven
K. Gendal ("Mr. Gendal"), as Principal of Whippoorwill.
ITEM 2(B). ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
The principal business address of Whippoorwill is 11 Martine Avenue,
White Plains, New York 10606. The principal business address of
Messrs. Greenhaus, Strumwasser and Gendal is c/o Whippoorwill.
ITEM 2(C). CITIZENSHIP:
Whippoorwill - Delaware
Mr. Greenhaus - United States
Mr. Strumwasser - United States
Mr. Gendal - United States
ITEM 2(D). TITLE OF CLASS OF SECURITIES:
Common Shares, without par value
ITEM 2(E). CUSIP
880915103
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULE
13D-1(B) OR 13D-2(B) OR (C), CHECK WHETHER THE PERSON FILING IS A:
(a) [_] Broker or dealer registered under Section 15 of the Exchange Act.
(b) [_] Bank as defined in Section 3(a)(6) of the Exchange Act.
(c) [_] Insurance company as defined in Section 3(a)(19) of the Exchange
Act.
(d) [_] Investment company registered under Section 8 of the Investment
Company Act.
(e) [X] An investment adviser in accordance with Rule 13d-1(b)(1)(ii)
(E); [Whippoorwill]
(f) [_] An employee benefit plan or endowment fund in accordance with
Rule 13d-1(b)(1)(ii)(F);
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(g) [_] A parent holding company or control person in accordance with
Rule 13d-1(b)(1)(ii)(G); [Messrs. Greenhaus, Strumwasser and
Gendal]
(h) [_] A savings association as defined in Section 3(b) of the Federal
Deposit Insurance Act;
(i) [_] A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act;
(j) [_] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
ITEM 4. OWNERSHIP.
ITEM 4(A): AMOUNT BENEFICIALLY OWNED:
As of December 31, 2006, Whippoorwill may be deemed to be the beneficial owner
of 4,829,630 Common Shares, which amount includes 3,132,530 Common Shares
issuable upon the conversion of 31,200 shares of 4.25% Series A Cumulative
Convertible Perpetual Preferred Shares of the Issuer ("Preferred Shares"), held
for the account of various funds and third party accounts for which Whippoorwill
has discretionary authority and acts as general partner or investment manager.
As of December 31, 2006, Messrs. Greenhaus, Strumwasser and Gendal may each be
deemed to be the beneficial owner of 4,829,630 Common Shares, which amount
includes 3,132,530 Common Shares issuable upon the conversion of 31,200
Preferred Shares, deemed to be beneficially owned by Whippoorwill as referred to
above. Mr. Greenhaus is the President and a Principal of Whippoorwill. Mr.
Strumwasser is a Principal of Whippoorwill. Mr. Gendal is a Principal of
Whippoorwill.
ITEM 4(B): PERCENT OF CLASS:
5.04%, based on 92,605,538 Common Shares outstanding as of October 23, 2006, as
reported on the Issuer's Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2006, plus 3,132,530 Common Shares issuable upon the
conversion of 31,200 Preferred Shares owned by the reporting persons.
ITEM 4(C):
Number of shares as to which Whippoorwill has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 4,829,630 (See Item
4(a))
(iii)sole power to dispose or to direct the disposition of: 0
(iv) shared power to dispose or to direct the disposition of:
4,829,630 (See Item 4(a))
Number of shares as to which Mr. Greenhaus has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 4,829,630 (See Item
4(a))
(iii)sole power to dispose or to direct the disposition of: 0
(iv) shared power to dispose or to direct the disposition of:
4,829,630 (See Item 4(a))
Number of shares as to which Mr. Strumwasser has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 4,829,630 (See Item
4(a))
(iii)sole power to dispose or to direct the disposition of: 0
(iv) shared power to dispose or to direct the disposition of:
4,829,630 (See Item 4(a))
7
Number of shares as to which Mr. Gendal has:
(i) sole power to vote or to direct the vote: 0
(ii) shared power to vote or to direct the vote: 4,829,630 (See Item
4(a))
(iii)sole power to dispose or to direct the disposition of: 0
(iv) shared power to dispose or to direct the disposition of:
4,829,630 (See Item 4(a))
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
N/A
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Clients of Whippoorwill have the right to receive or the power to direct
the receipt of dividends from, or the proceeds from the sale of, the Common
Shares reported as beneficially owned by Whippoorwill. None of the client
accounts or limited partnerships or funds over which Whippoorwill has
discretionary authority holds more than 5% of the Common Shares.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE
SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY OR CONTROL
PERSON.
See Item 4(a) regarding Messrs. Greenhaus, Strumwasser and Gendal.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
N/A
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
N/A
ITEM 10. CERTIFICATION.
(a) By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired and are held in the
ordinary course of business and were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.
(b) N/A
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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.
Date: February 14, 2007 WHIPPOORWILL ASSOCIATES, INCORPORATED
/s/ Shelley F. Greenhaus
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Name: Shelley F. Greenhaus
Title: President
Date: February 14, 2007 /s/ Shelley F. Greenhaus
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Shelley F. Greenhaus
Date: February 14, 2007 /s/ David A. Strumwasser
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David A. Strumwasser
Date: February 14, 2007 /s/ Steven K. Gendal
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Steven K. Gendal
9