SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 37)*
TRANSCONTINENTAL REALTY INVESTORS, INC.
--------------------------------------------------------------------------------
(NAME OF ISSUER)
Common Stock, par value $0.01 per share
--------------------------------------------------------------------------------
(TITLE OF CLASS OF SECURITIES)
893617-20-9
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(CUSIP NUMBER)
Robert A. Waldman
1800 Valley View Lane, Suite 300
Dallas, Texas 75234
(469) 522-4200
--------------------------------------------------------------------------------
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON
AUTHORIZED TO RECEIVE NOTICES AND COMMUNICATIONS)
November 7, 2002
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(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 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 Rule 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).
CUSIP NO. 893617-20-9 13D/37A Page 2 of 16
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
American Realty Trust, Inc., FEI No. 54-0697989
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(A) [ ]
(B) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(D) OR 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Georgia
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON -0-
WITH ------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,994,301
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
49.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------
CUSIP NO. 893617-20-9 13D/37A Page 3 of 16
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
ART Holdings, Inc., FEI No. 75-2663476
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(A) [ ]
(B) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(D) OR 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON -0-
WITH ------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-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
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
-0-
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------
CUSIP NO. 893617-20-9 13D/37A Page 4 of 16
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Basic Capital Management, Inc., FEI No. 75-2261065
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(A) [ ]
(B) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(D) OR 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,166,948
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON -0-
WITH ------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,166,948
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,166,948
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------
CUSIP NO. 893617-20-9 13D/37A Page 5 of 16
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
The Gene E. Phillips Children's Trust, I.D. No. 13-6599759
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(A) [ ]
(B) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
N/A
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(D) OR 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Texas
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,827
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON -0-
WITH ------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,827
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,827
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.02%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
00
--------------------------------------------------------------------------------
CUSIP NO. 893617-20-9 13D/37A Page 6 of 16
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
Syntek Asset Management, L.P., FEI No. 75-2311348
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(A) [ ]
(B) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
N/A
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(D) OR 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 26,475
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON -0-
WITH ------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
26,475
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
26,475
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------------------------------------------------------------------------------
CUSIP NO. 893617-20-9 13D/37A Page 7 of 16
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
American Realty Investors, Inc., FEI No. 75-2847135
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(A) [ ]
(B) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
2(D) OR 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY -0-
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON -0-
WITH ------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,994,301
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
49.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------
CUSIP NO. 893617-20-9 13D/37A Page 8 of 16
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1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
EQK Holdings, Inc., FEI No. 75-2931679
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(A) [ ]
(B) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
--------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(D) OR 2(E) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 3,994,301
OWNED BY ------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON
WITH ------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
3,994,301
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,994,301
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS)
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
49.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------------------------------------------------------------------------------
CUSIP NO. 893617-20-9 13D/37A Page 9 of 16
ITEM 1. SECURITY AND ISSUER.
This Amendment No. 37 to Statement on Schedule 13D relates to the
shares of Common Stock, par value $0.01 per share (the "Shares") of
TRANSCONTINENTAL REALTY INVESTORS, INC., a Nevada corporation ("TCI" or the
"Issuer") and further amends the original Statement on Schedule 13D as amended
by Amendment Nos. 1 through 36 thereof (the "Amended Statement") filed by and on
behalf of the "Reporting Persons" described below. The principal executive
offices of TCI are located at 1800 Valley View Lane, Suite 300, Dallas, Texas
75234. The CUSIP number of the shares is 893617-20-9.
This Amendment No. 37 is being filed to reflect various changes in the
information contained in the Amended Statement, including a press release
announcing a proposed tender offer of the Issuer's Shares. Transcontinental
Realty Acquisition Corporation ("TCI Acquisition Sub"), a wholly-owned
subsidiary of American Realty Investors, Inc. ("ARL"), is planning to offer to
purchase any or all outstanding shares of common stock of the Issuer.
ITEM 2. IDENTITY AND BACKGROUND.
Item 2 of the Amended Statement is hereby further amended as follows:
Collene C. Currie is no longer a director of ARL.
On September 24, 2002 the SEC filed a civil complaint, Civil Action No.
1:02CV01872 (D.D.C.), in a lawsuit styled Securities and Exchange Commission v.
Basic Capital Management, Inc. and Gene E. Phillips, and the SEC issued an Order
Instituting Proceedings Pursuant to Section 21C of the Securities Exchange Act
of 1934 ("Exchange Act"), Making Findings and Imposing a Cease-and-Desist Order,
In The Matter of Basic Capital Management, Inc., Nevada Sea Investments, Inc.,
International Health Products, Inc., One Realco Corporation, TacCO Financial,
Inc. and Gene E. Phillips (Administrative Proceedings File No. 3-10898,
Administrative Procedure Release No. 46538). In anticipation of the Order, Mr.
Gene E. Phillips, BCM and four corporations affiliated with Mr. Phillips or the
trust for his children that indirectly owns BCM (Nevada Sea Investments, Inc.,
International Health Products, Inc., One Realco Corporation and TacCO Financial,
Inc.) (together, the "Respondents") submitted an Offer of Settlement and
consented, without admitting or denying any of the allegations, to the entry of
a judgment ordering Mr. Phillips and BCM to pay a civil penalty of $850,000.
The Order finds, among other things, that the Respondents violated
Section 10(b) and 13(d) of the Exchange Act, as amended, and Rules 10b-5, 13d-1
and 13d-2 promulgated thereunder, by failing to timely file reports required
under Section 13(d) with respect to the securities of Greenbriar Corporation.
Although none of the Respondents purchased more than five percent of
Greenbriar's outstanding shares, their holdings together with the holdings of
ART amounted to approximately 16.1% by June 1997. Between May 1996 and June
1997, the Respondents and ART accounted for approximately 54% of the total
trading volume in Greenbriar stock. On particular days during the period, the
Respondents bought all the Greenbriar stock traded. The Order requires the
Respondents
CUSIP NO. 893617-20-9 13D/37A Page 10 of 16
to cease and desist from committing or causing any violation of Sections 10(b)
and 13(d) of the Exchange Act and Rules 10b-5, 13d-1 and 13d-2 promulgated
thereunder.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Item 3 of the Amended Statement is hereby further amended as follows:
ARL currently does not have sufficient cash to pay for the purchase of
TCI's Shares and related expenses of a tender offer. If the tender offer takes
place, ARL expects to pay for Shares tendered from cash on hand at the time
tendered Shares are accepted and from borrowings. ARL expects to obtain this
financing through refinancing existing indebtedness on its various real estate
holdings, which it typically does in the ordinary course of its business, and by
borrowing money from financial institutions with repayment secured by pledges of
some of its real estate holdings. Although it does not have any firm commitments
for either refinancings or new borrowings, it has had numerous discussions with
existing lenders regarding refinancings of properties in Palm Desert,
California, Tallahassee, Florida, Farmers Branch, Texas, Lincoln, Nebraska,
Denver, Colorado, Fresno, California, Nashville, Tennessee and Sofia, Bulgaria,
among others.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 of the Amended Statement is hereby further amended as follows:
At the close of the market on November 7, 2002, ARL announced that it
intends to commence, through subsidiaries, a tender offer for shares of common
stock of its affiliates TCI and IOT. ARL expects to commence the tender offer on
or before November 15, 2002. ARL is proposing to make the tender offer through
its wholly-owned subsidiary, TCI Acquisition Sub, in order to comply with its
obligations under a court-approved settlement agreement of certain litigation
against TCI, Income Opportunity Realty Investors ("IOT") and certain of their
affiliates known as Jack Olive, et. al. v. National Income Realty Trust, et.
al., Case No. C89 4331 MHP pending in the United States District Court for the
Northern District of California. The parties to the litigation have entered into
a settlement agreement, after arms length negotiation, providing that ARL would
propose a merger with TCI pursuant to which stockholders of TCI (other than Mr.
Phillips, BCM, ARL and ART) would receive $17.50 in cash for each of their
shares of the common stock of TCI or, at their option, a share of the preferred
stock of ARL in lieu of cash.
In order to propose the merger transaction to the stockholders of TCI,
ARL was required to prepare a registration statement and proxy statement and
submit it for review to the Securities and Exchange Commission. The settlement
agreement required that the review process be completed by March 31, 2002,
unless extended by Settlement Counsel, George Donaldson. That process has not
yet been completed. In the event that ARL is in default of its obligations under
the settlement agreement to propose and consummate the merger, it may cure its
default by making a tender offer for the share of TCI's and IOT's common stock.
In discussions with Settlement Counsel on Friday, November 1, 2002,
representatives of ARL agreed to announce a tender offer for the shares of TCI's
and
CUSIP NO. 893617-20-9 13D/37A Page 11 of 16
IOT's common stock on November 7, 2002 and commence the offers not later than
November 15, 2002. ARL did in fact announce a proposed tender offer on November
7, 2002 and plans to commence the tender offer on November 15, 2002. If ARL
successfully completes the tender offer, ARL will not be liable for liquidated
damages under the settlement agreement. ARL will defer further action on the
proposed mergers during the pendency of the offer. If the offer is consummated
for less than all of the Shares of TCI held by persons other than affiliates of
ARL, ARL currently expects to pursue the merger after the consummation of the
offer. Depending on the number of TCI Shares tendered in the offer, TCI's Shares
could become eligible for delisting from the New York Stock Exchange and for
termination of registration pursuant to Section 12(g)(4) of the Exchange Act.
Except with respect to the proposed tender and the proposed merger
offer described above, and any ancillary effect same would have on the following
items, the Reporting Persons do not have any plans or proposals that relate to
or would result in:
(a) The acquisition by any person of additional securities of the
Issuer or the disposition of securities of the Issuer;
(b) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Issuer or any of its subsidiaries;
(c) A sale or transfer of a material amount of assets of TCI or any of
its subsidiaries (except that as part of the tender offer certain real property
assets owned by the Issuer may be sold);
(d) Any change in the present board of directors or management of TCI,
including any plans or proposals to change the number or term of directors or to
fill any existing vacancies on the board;
(e) Any material change in the present capitalization or dividend
policy of TCI;
(f) Any other material change in TCI's business or corporate structure;
(g) Changes in TCI's charter, bylaws or instruments corresponding
thereto or other actions which may impede the acquisition of control of TCI by
any person (except that the Reporting Persons' collective ownership of 64.3% of
the outstanding Shares would itself be an impediment to any potential change of
control not approved by the Reporting Persons);
(h) Causing a class of securities of TCI to be delisted from a national
securities exchange or to cease to be authorized to be quoted in an inter-dealer
quotation system of a registered national securities association (except that,
depending on the number of Shares tendered, TCI's Shares may no longer be
eligible for listing on a national securities exchange);
(i) A class of equity securities of TCI becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Exchange Act, as
amended (except that if the tender offer reduced the number of common
stockholders of TCI to a number below 300, such Shares would then become
eligible for termination of registration); or
CUSIP NO. 893617-20-9 13D/37A Page 12 of 16
(j) Any actions similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 of the Amended Statement is hereby further amended as follows:
(a) According to the latest information available from the Issuer, as
of November 1, 2002, the total number of issued and outstanding Shares was
8,072,594 Shares. As of November 1, 2002, the following Shares were owned
directly and beneficially by the Reporting Persons as set forth below:
NAME NUMBER OF SHARES APPROXIMATE PERCENT OF CLASS
--------------------- ---------------------------------- ----------------------------------
ART* 3,994,301 49.5%
BCM 1,166,948 14.5%
AHI -0- -0-
GEP TRUST 1,827 0.02%
SAM LP 26,475 0.3%
ARL* 3,994,301 49.5%
EQK** 3,994,301 49.5%
----------------- -----------------
TOTALS: 5,189,551 64.3%
----------
* Same Shares owned by EQK; EQK is a wholly-owned subsidiary of ART,
which in turn is a wholly-owned subsidiary of ARL; ARL is the indirect parent of
EQK.
** Effective August 10, 2001, ART transferred to its subsidiary EQK
2,135,400 Shares, all of which had previously been purchased in open market
transactions over a period of years.
Pursuant to Rule 13d-3 under the Exchange Act, each of the directors of
ARL, ART and EQK may be deemed to beneficially own the number of Shares owned by
EQK described above; each of the directors of BCM may be deemed to beneficially
own the Shares held directly by BCM; and each of the directors of Syntek Asset
Management, Inc. ("SAMI"), a general partner of SAM LP, and Gene E. Phillips,
the other general partner of SAM LP, may be deemed to beneficially own the
Shares held by SAM LP. Those individuals and the number of Shares deemed
beneficially owned pursuant to Rule 13d-3, and the approximate percent of the
class, as well as the relationship, are set forth in the following table:
NAME OF DIRECTOR OR GENERAL
PARTNER ENTITY NO. OF SHARES BENEFICIALLY OWNED PERCENT OF CLASS
------------------------------- --------------------- --------------------------------- --------------------------------
Earl D. Cecil ARL 3,994,301* 49.5%
CUSIP NO. 893617-20-9 13D/37A Page 13 of 16
NAME OF DIRECTOR OR GENERAL ENTITY NO. OF SHARES BENEFICIALLY OWNED PERCENT OF CLASS
PARTNER
------------------------------- --------------------- --------------------------------- --------------------------------
Richard W. Humphrey ARL 3,994,301* 49.5%
Joseph Mizrachi ARL 3,994,301* 49.5%
Ryan T. Phillips BCM+ 1,168,804 14.5%
Mickey Ned Phillips BCM 1,166,977 14.5
Donald W. Phillips GEP Trust 1,827 0.02%
Gene E. Phillips SAM LP 26,475 0.3%
SAMI SAM LP 26,475 0.3%
Robert A. Waldman ART and EQK 3,994,301* 49.5%
Ronald E. Kimbrough ART and EQK 3,994,301* 49.5%
----------------- -----------------
Total Units Beneficially owned by Reporting Persons 5,191,407 64.32%
and Individuals listed above
----------
+ Also beneficiary of the GEP Trust.
(b) No modification.
(c) No modification.
(d) No modification.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Item 6 of the Amended Statement is hereby further amended to add the
following exhibit:
Pursuant to the settlement agreement, which is discussed in Item 4,
ARL, BCM, Mr. Phillips and stockholders affiliated with those parties who in the
aggregate own a total of 64.3% of the TCI common stock have orally agreed with
TCI Acquisition Sub not to tender shares of TCI common stock owned by them in
the tender offer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 of the Amended Statement is hereby further amended to add the
following exhibit:
CUSIP NO. 893617-20-9 13D/37A Page 14 of 16
EXHIBIT DESIGNATION DESCRIPTION OF EXHIBIT
------------------------------------------------------------ ---------------------------------------------------------
99.1 Pre-commencement Press Release
CUSIP NO. 893617-20-9 13D/37A Page 15 of 16
SIGNATURES AND POWER OF ATTORNEY
After reasonable inquiry and to the best of the knowledge and belief of
the undersigned, the undersigned certify that the information set forth in this
statement is true, complete and correct.
DATED: November 12, 2002
SYNTEK ASSET MANAGEMENT, LP,
a Delaware limited partnership
By: Syntek Asset Management, General Partner
By: /s/ RONALD E. KIMBROUGH
----------------------------------------
Ronald E. Kimbrough
Executive Vice President
AMERICAN REALTY INVESTORS, INC.
By: /s/ RONALD E. KIMBROUGH
----------------------------------------
Ronald E. Kimbrough
Executive Vice President
ART HOLDINGS, INC.
By: /s/ RONALD E. KIMBROUGH
----------------------------------------
Ronald E. Kimbrough
Executive Vice President
THE GENE E. PHILLIPS CHILDREN'S TRUST
By: /s/ DONALD W. PHILLIPS
----------------------------------------
Donald W. Phillips, Trustee
AMERICAN REALTY TRUST, INC.
By: /s/ RONALD E. KIMBROUGH
----------------------------------------
Ronald E. Kimbrough
Executive Vice President
BASIC CAPITAL MANAGEMENT, INC.
By: /s/ RONALD E. KIMBROUGH
----------------------------------------
Ronald E. Kimbrough
Executive Vice President
CUSIP NO. 893617-20-9 13D/37A Page 16 of 16
EQK HOLDINGS, INC.
By: /s/ RONALD E. KIMBROUGH
----------------------------------------
Ronald E. Kimbrough
Executive Vice President