UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 20)
Under the Securities Exchange Act of 1934
PRG-SCHULTZ INTERNATIONAL, INC.
------------------------------------------
(Name of Issuer)
Common Stock, No Par Value Per Share
------------------------------------
(Title of Class of Securities)
69357C503
---------
(CUSIP Number)
Gregory D. Hitchan
Blum Capital Partners, L.P.
909 Montgomery Street, Suite 400
San Francisco, CA 94133
(415) 434-1111
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
July 16, 2007
-----------------
(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 ?? 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 ?? 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).
Page 1 of 18
CUSIP NO. 69357C503 SCHEDULE 13D Page 2 of 18
------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON BLUM CAPITAL PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3205364
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,233,696 shares (including 4,314,095 shares issuable
OWNED BY EACH upon conversion of Senior Convertible Notes and Series
PERSON WITH A Preferred Stock)**
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,233,696 shares (including 4,314,095 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,233,696 shares (including 4,314,095 shares issuable upon conversion
of Senior Convertible Notes and Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 40.0%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN, IA
------------------------------------------------------------------------------
** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 3 of 18
------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON RICHARD C. BLUM & ASSOCIATES, INC.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-2967812
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,233,696 shares (including 4,314,095 shares issuable
OWNED BY EACH upon conversion of Senior Convertible Notes and Series
PERSON WITH A Preferred Stock)**
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,233,696 shares (including 4,314,095 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,233,696 shares (including 4,314,095 shares issuable upon conversion
of Senior Convertible Notes and Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 40.0%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON CO
------------------------------------------------------------------------------
** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 4 of 18
------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON BLUM STRATEGIC GP, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3303831
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,233,696 shares (including 4,314,095 shares issuable
OWNED BY EACH upon conversion of Senior Convertible Notes and Series
PERSON WITH A Preferred Stock)**
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,233,696 shares (including 4,314,095 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,233,696 shares (including 4,314,095 shares issuable upon conversion
of Senior Convertible Notes and Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 40.0%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
------------------------------------------------------------------------------
** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 5 of 18
------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON BLUM STRATEGIC PARTNERS II, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3395151
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,233,696 shares (including 4,314,095 shares issuable
OWNED BY EACH upon conversion of Senior Convertible Notes and Series
PERSON WITH A Preferred Stock)**
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,233,696 shares (including 4,314,095 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,233,696 shares (including 4,314,095 shares issuable upon conversion
of Senior Convertible Notes and Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 40.0%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 6 of 18
------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON BLUM STRATEGIC GP II, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3395150
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,233,696 shares (including 4,314,095 shares issuable
OWNED BY EACH upon conversion of Senior Convertible Notes and Series
PERSON WITH A Preferred Stock)**
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,233,696 shares (including 4,314,095 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,233,696 shares (including 4,314,095 shares issuable upon conversion
of Senior Convertible Notes and Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 40.0%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
------------------------------------------------------------------------------
** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 7 of 18
------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON STINSON CAPITAL PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3232358
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,233,696 shares (including 4,314,095 shares issuable
OWNED BY EACH upon conversion of Senior Convertible Notes and Series
PERSON WITH A Preferred Stock)**
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,233,696 shares (including 4,314,095 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,233,696 shares (including 4,314,095 shares issuable upon conversion
of Senior Convertible Notes and Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 40.0%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 8 of 18
------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON STINSON CAPITAL PARTNERS (QP), L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 52-2379857
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,233,696 shares (including 4,314,095 shares issuable
OWNED BY EACH upon conversion of Senior Convertible Notes and Series
PERSON WITH A Preferred Stock)**
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,233,696 shares (including 4,314,095 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,233,696 shares (including 4,314,095 shares issuable upon conversion
of Senior Convertible Notes and Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 40.0%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 9 of 18
------------------------------------------------------------------------------
1. NAME OF REPORTING PERSON STINSON CAPITAL PARTNERS II, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3264850
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
------------------------------------------------------------------------------
3. SEC USE ONLY
------------------------------------------------------------------------------
4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION California
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,233,696 shares (including 4,314,095 shares issuable
OWNED BY EACH upon conversion of Senior Convertible Notes and Series
PERSON WITH A Preferred Stock)**
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,233,696 shares (including 4,314,095 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,233,696 shares (including 4,314,095 shares issuable upon conversion
of Senior Convertible Notes and Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 40.0%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 10 of 18
Item 1. Security and Issuer
----------------------------
This Amendment No. 20 amends the Statement on Schedule 13D (the "Schedule
13D") filed with the Securities and Exchange Commission (the "Commission") on
October 4, 2006 by Blum Capital Partners, L.P., a California limited
partnership, ("Blum LP"); Richard C. Blum & Associates, Inc., a California
corporation ("RCBA Inc. "); Blum Strategic GP, L.L.C., a Delaware limited
liability company ("Blum GP"); Blum Strategic GP II, L.L.C., a Delaware
limited liability company ("Blum GP II"); Blum Strategic Partners II, L.P., a
Delaware limited partnership ("Blum Strategic II"); Stinson Capital Partners,
L.P., a California limited partnership ("Stinson"); Stinson Capital Partners
(QP), L.P., a Delaware limited partnership ("Stinson QP"); and Stinson Capital
Partners II, L.P., a California limited partnership ("Stinson II")
(collectively, the "Reporting Persons").
This amendment to the Schedule 13D relates to the shares of Common Stock, no
par value per share (the "Common Stock") of PRG-Schultz International, Inc., a
Georgia corporation (the "Issuer"). The principal executive office and
mailing address of the Issuer is 600 Galleria Parkway, Suite 100, Atlanta,
Georgia 30339-5949.
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 2. Identity and Background
--------------------------------
Item 2 of the Schedule 13D is hereby amended and restated in its entirety
with the following:
Blum LP is a California limited partnership whose principal business is
acting as general partner for investment partnerships and providing
investment advisory services. Blum LP is an investment advisor registered
with the Securities and Exchange Commission. The sole general partner of
Blum LP is RCBA Inc.
The principal business office address of Blum LP and RCBA Inc. is 909
Montgomery Street, Suite 400, San Francisco, California 94133. The names
Of the executive officers and directors of RCBA Inc., their addresses,
citizenship and principal occupations are as follows:
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 11 of 18
Name and Business Citizen- Principal Occupation
Office Held Address ship or Employment
-------------------- ----------------------- --------- -------------------
Richard C. Blum 909 Montgomery St. USA President & Chairman,
President, Suite 400 Blum LP
Chairman & Director San Francisco, CA 94133
Nils Colin Lind 909 Montgomery St. USA and Managing Partner,
Managing Partner Suite 400 Norway Blum LP
& Director San Francisco, CA 94133
John H. Park 909 Montgomery St. USA Partner,
Partner Suite 400 Blum LP
San Francisco, CA 94133
Gregory L. Jackson 909 Montgomery St. USA Partner,
Partner Suite 400 Blum LP
San Francisco, CA 94133
Jane J. Su 909 Montgomery St. USA Partner,
Partner Suite 400 Blum LP
San Francisco, CA 94133
David H.S. Chung 909 Montgomery St. USA Partner,
Partner Suite 400 Blum LP
San Francisco, CA 94133
Nadine F. Terman 909 Montgomery St. USA Partner,
Partner Suite 400 Blum LP
San Francisco, CA 94133
Gregory D. Hitchan 909 Montgomery St. USA Partner, Chief
Partner, Chief Suite 400 Operating Officer,
Operating Officer, San Francisco, CA 94133 General Counsel and
General Counsel and Secretary, Blum LP
Secretary
Marc T. Scholvinck 909 Montgomery St. USA Partner & Chief
Partner, Chief Suite 400 Financial Officer,
Financial Officer, San Francisco, CA 94133 Blum LP
Assistant Secretary
& Director
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 12 of 18
Blum GP is a Delaware limited liability company whose principal business
is acting as the sole general partner of Blum Strategic Partners, L.P. ("Blum
Strategic").
The principal business office address of Blum GP is 909 Montgomery Street,
Suite 400, San Francisco, CA 94133. The names of the managing members and
members of Blum GP, their addresses, citizenship and principal occupations
are as follows:
Name and Business Citizen- Principal Occupation
Office Held Address ship or Employment
-------------------- ----------------------- --------- -------------------
Richard C. Blum 909 Montgomery St. USA President & Chairman,
Managing Member Suite 400 Blum LP
San Francisco, CA 94133
Nils Colin Lind 909 Montgomery St. USA and Managing Partner,
Managing Member Suite 400 Norway Blum LP
San Francisco, CA 94133
John H. Park 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
Gregory L. Jackson 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
Jane J. Su 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
David H.S. Chung 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
Nadine F. Terman 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 13 of 18
Name and Business Citizen- Principal Occupation
Office Held Address ship or Employment
-------------------- ----------------------- --------- -------------------
Gregory D. Hitchan 909 Montgomery St. USA Partner, Chief
Member Suite 400 Operating Officer,
San Francisco, CA 94133 General Counsel &
Secretary, Blum LP
Marc T. Scholvinck 909 Montgomery St. USA Partner & Chief
Member Suite 400 Financial Officer,
San Francisco, CA 94133 Blum LP
Blum GP II is a Delaware limited liability company whose principal business
is acting as the sole general partner of Blum Strategic II and also as
managing limited partner of Blum Strategic Partners II GmbH & Co. KG.( "Blum
Strategic II KG").
The principal business office address of Blum GP II is 909 Montgomery Street,
Suite 400, San Francisco, CA 94133. The names of the managing members and
members of Blum GP II, their addresses, citizenship and principal occupations
are as follows:
Name and Business Citizen- Principal Occupation
Office Held Address ship or Employment
-------------------- ----------------------- --------- -------------------
Richard C. Blum 909 Montgomery St. USA President & Chairman,
Managing Member Suite 400 Blum LP
San Francisco, CA 94133
Nils Colin Lind 909 Montgomery St. USA and Managing Partner,
Managing Member Suite 400 Norway Blum LP
San Francisco, CA 94133
John H. Park 909 Montgomery St. USA Partner,
Managing Member Suite 400 Blum LP
San Francisco, CA 94133
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 14 of 18
Name and Business Citizen- Principal Occupation
Office Held Address ship or Employment
-------------------- ----------------------- --------- -------------------
Gregory L. Jackson 909 Montgomery St. USA Partner,
Managing Member Suite 400 Blum LP
San Francisco, CA 94133
Jane J. Su 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
David H.S. Chung 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
Nadine F. Terman 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
Gregory D. Hitchan 909 Montgomery St. USA Partner, Chief
Managing Member Suite 400 Operating Officer,
San Francisco, CA 94133 General Counsel &
Secretary, Blum LP
Marc T. Scholvinck 909 Montgomery St. USA Partner & Chief
Managing Member Suite 400 Financial Officer,
San Francisco, CA 94133 Blum LP
To the best knowledge of the Reporting Persons, none of the entities or
persons identified in this Item 2 has, during the past five years, been
convicted of any criminal proceeding (excluding traffic violations or similar
misdemeanors), nor been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such
proceeding was 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.
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 15 of 18
Item 4. Purpose of Transaction
-------------------------------
Item 4 is amended to add the following:
In connection with the proposed refinancing announced by the Issuer, the
Reporting Persons have entered into a Conversion and Support Agreement (the
"Support Agreement") with the Issuer. As consideration for the Support
Agreement, on July 16, 2007, the Issuer entered into a 2007 Amended and
Restated Standstill Agreement (the "New Standstill Agreement") with the
Reporting Persons. Upon effectiveness, the New Standstill Agreement will
replace and supersede the Amended and Restated Standstill Agreement dated
November 14, 2005 between the Reporting Persons and the Issuer.
The information set forth in this Item 4 is qualified in its entirety by the
reference to the Support Agreement and the New Standstill Agreement which are
attached hereto as Exhibits B and C, respectively, each of which is
incorporated by reference herein in its entirety.
Item 5. Interest in Securities of the Issuer
---------------------------------------------
Item 5 of the Schedule 13D is hereby amended as follows:
(a),(b) According to the Issuer's Form 8-K filed with the Commission on May
15, 2007, there were 8,767,345 shares of Common Stock issued and outstanding
as of April 30, 2007. Based on such information, after taking into account
the transactions described in Item 5(c) below, the Reporting Persons report
beneficial ownership of the following shares of Common Stock: (i) 63,126
shares of the Common Stock held by Blum LP and RCBA Inc. on behalf of the
limited partnerships for which Blum LP serves as the general partner, or on
behalf of an entity for which Blum LP serves as investment advisor, which
represents 0.7% of the outstanding shares of the Common Stock; (ii) 11,770
shares of the Common Stock held by Blum GP on behalf of the limited
partnership for which it serves as the general partner, which represents 0.1%
of the outstanding shares of the Common Stock; and (iii) 844,705 shares of the
Common Stock held by Blum GP II on behalf of the limited partnership for which
it serves as the general partner and on behalf of the limited partnership for
which it serves as the managing limited partner, which represents 9.6% of the
outstanding shares of the Common Stock.
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 16 of 18
Voting and investment power concerning the above shares are held solely by
Blum LP, Blum GP and Blum GP II. The Reporting Persons therefore may be
deemed to be members in a group, in which case the group would be deemed to
have beneficial ownership of an aggregate of 919,601 shares of the Common
Stock, which is 10.5% of the outstanding Common Stock. As the sole general
partner of Blum LP, RCBA Inc. is deemed the beneficial owner of the securities
over which Blum LP has voting and investment power. The filing of this
Schedule shall not be construed as an admission that any of the shareholders,
directors or executive officers of RCBA Inc. or the managing members and
members of Blum GP and Blum GP II, is, for any purpose, the beneficial owner
of any of the securities that are beneficially owned by RCBA Inc., Blum GP, or
Blum GP II.
In the event that the Reporting Persons converted the 10.0% Senior Convertible
Notes due 2011 (the "Senior Convertible Notes") and the Series A Convertible
Participating Preferred Stock (the "Series A Preferred Stock") of the Issuer
into Common Stock (see the Schedule 13D Amendment Number 18, filed by the
Reporting Persons on March 24, 2006), the Reporting Persons may be deemed to
have beneficial ownership of and exercise shared voting and dispositive power
over (i) principal amount of $17,580,874 of Senior Convertible Notes, which is
convertible into 2,704,751 shares of Common Stock, and (ii) 34,901 shares of
Series A Preferred Stock, which are convertible into 1,609,345 shares of
Common Stock. The Reporting Persons may thus be deemed to have beneficial
ownership of 5,233,696 shares or 40.0% of the Common Stock, as follows:
(i) Blum LP and RCBA Inc. may be deemed to have beneficial ownership of
2,523,084 shares, which represents 19.3% on an as converted basis;
(ii) Blum GP II may be deemed to have beneficial ownership of 2,698,842
shares, which represents 20.6% on an as converted basis; and
(iii) Blum GP may be deemed to have beneficial ownership of 11,770 shares,
which represents 0.1% on an as converted basis.
(c) The Reporting Persons have not effected any transactions in the securities
of the Issuer during the last 60 days.
(d) and (e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer
----------------------------------------------------------------------
Item 6 to Schedule 13D is hereby amended to incorporate the Support Agreement
and the New Standstill Agreement which are attached hereto as Exhibits B and
C, respectively, each of which is incorporated by reference herein in its
entirety.
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 17 of 18
Item 7. Material to be Filed as Exhibits
-----------------------------------------
Exhibit A - Joint Filing Undertaking
Exhibit B - Conversion and Support Agreement
Exhibit C - Amended and Restated Standstill Agreement
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 18 of 18
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: July 17, 2007
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its general partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- -----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary
BLUM STRATEGIC GP, L.L.C. BLUM STRATEGIC GP II, L.L.C.
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- ---------------------------
Gregory D. Hitchan, General Gregory D. Hitchan, General
Counsel and Member Counsel and Managing Member
BLUM STRATEGIC PARTNERS II, L.P. STINSON CAPITAL PARTNERS, L.P.
By: Blum Strategic GP II, L.L.C., By: Blum Capital Partners, L.P.,
its General Partner its General Partner
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
---------------------------- -----------------------------
Gregory D. Hitchan, General Partner, Chief Operating Officer,
Counsel and Managing Member General Counsel and Secretary
STINSON CAPITAL PARTNERS II, L.P. STINSON CAPITAL PARTNERS (QP), L.P.
By: Blum Capital Partners, L.P., By: Blum Capital Partners, L.P.,
its General Partner its General Partner
By: Richard C. Blum & Associates, Inc. By: Richard C. Blum & Associates, Inc.
its General Partner its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- -----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 1 of 1
Exhibit A
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: July 17, 2007
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its general partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- -----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary
BLUM STRATEGIC GP, L.L.C. BLUM STRATEGIC GP II, L.L.C.
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- ---------------------------
Gregory D. Hitchan, General Gregory D. Hitchan, General
Counsel and Member Counsel and Managing Member
BLUM STRATEGIC PARTNERS II, L.P. STINSON CAPITAL PARTNERS, L.P.
By: Blum Strategic GP II, L.L.C., By: Blum Capital Partners, L.P.,
its General Partner its General Partner
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
---------------------------- -----------------------------
Gregory D. Hitchan, General Partner, Chief Operating Officer,
Counsel and Managing Member General Counsel and Secretary
STINSON CAPITAL PARTNERS II, L.P. STINSON CAPITAL PARTNERS (QP), L.P.
By: Blum Capital Partners, L.P., By: Blum Capital Partners, L.P.,
its General Partner its General Partner
By: Richard C. Blum & Associates, Inc. By: Richard C. Blum & Associates, Inc.
its General Partner its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- -----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary