UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 19)
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)
September 1, 2006
-----------------
(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 Section 240.13d-1(e),
240.13d-1(f) or 240.13d-1(g), check the following box [ ].
Note: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. See Section
240.13d-7 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 15
CUSIP NO. 69357C503 SCHEDULE 13D Page 2 of 15
------------------------------------------------------------------------------
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]
------------------------------------------------------------------------------
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 5,170,565 shares (including 4,244,794 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
5,170,565 shares (including 4,244,794 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,170,565 shares (including 4,244,794 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) 44.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN, IA
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C503 SCHEDULE 13D Page 3 of 15
------------------------------------------------------------------------------
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 5,170,565 shares (including 4,244,794 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
5,170,565 shares (including 4,244,794 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,170,565 shares (including 4,244,794 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) 44.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON CO
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C503 SCHEDULE 13D Page 4 of 15
------------------------------------------------------------------------------
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 5,170,565 shares (including 4,244,794 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
5,170,565 shares (including 4,244,794 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,170,565 shares (including 4,244,794 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) 44.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C503 SCHEDULE 13D Page 5 of 15
------------------------------------------------------------------------------
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 5,170,565 shares (including 4,244,794 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
5,170,565 shares (including 4,244,794 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,170,565 shares (including 4,244,794 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) 44.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C503 SCHEDULE 13D Page 6 of 15
------------------------------------------------------------------------------
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 5,170,565 shares (including 4,244,794 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
5,170,565 shares (including 4,244,794 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,170,565 shares (including 4,244,794 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) 44.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C503 SCHEDULE 13D Page 7 of 15
------------------------------------------------------------------------------
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 5,170,565 shares (including 4,244,794 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
5,170,565 shares (including 4,244,794 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,170,565 shares (including 4,244,794 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) 44.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C503 SCHEDULE 13D Page 8 of 15
------------------------------------------------------------------------------
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 5,170,565 shares (including 4,244,794 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
5,170,565 shares (including 4,244,794 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,170,565 shares (including 4,244,794 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) 44.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C503 SCHEDULE 13D Page 9 of 15
------------------------------------------------------------------------------
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 5,170,565 shares (including 4,244,794 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
5,170,565 shares (including 4,244,794 shares issuable
upon conversion of Senior Convertible Notes and Series
A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,170,565 shares (including 4,244,794 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) 44.3%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
------------------------------------------------------------------------------
** See Item 5
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP NO. 69357C503 SCHEDULE 13D Page 10 of 15
Item 1. Security and Issuer
----------------------------
This Amendment No. 19 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission (the "Commission") on March
24, 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 as follows:
Since the filing of Amendment No. 18 to Schedule 13D, there have been changes
to the executive officers of Blum LP and 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:
Name and Business Citizenship Principal Occupation
Office Held Address 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
CUSIP NO. 69357C503 SCHEDULE 13D Page 11 of 15
Name and Business Citizenship Principal Occupation
Office Held Address or Employment
-------------------- ----------------------- --------- --------------------
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
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
William Scott Hartman 909 Montgomery St. USA Partner,
Partner Suite 400 Blum LP
San Francisco, CA 94133
Since the filing of Amendment No. 18 to Schedule 13D, there have been
changes to the members of Blum GP.
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
Gregory D. Hitchan 909 Montgomery St. USA Partner, Chief
Member and Suite 400 Operating Officer,
General Counsel 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
CUSIP NO. 69357C503 SCHEDULE 13D Page 12 of 15
Since the filing of Amendment No. 18 to Schedule 13D, there have been
changes to the managing members and members of Blum GP II.
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 &
Managing Member Suite 400 Chairman, 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
Gregory L. Jackson 909 Montgomery St. USA Partner,
Managing Member Suite 400 Blum LP
San Francisco, CA 94133
Gregory D. Hitchan 909 Montgomery St. USA Partner, Chief
Member and Suite 400 Operating Officer,
General Counsel 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
William Scott Hartman 909 Montgomery St. USA Partner,
Member Suite 400 Blum LP
San Francisco, CA 94133
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 13 of 15
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
August 17, 2006, there were 6,511,918 shares of Common Stock issued and
outstanding as of August 14, 2006. 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) 69,296 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 1.1% 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 0.2% 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 13.0% of the outstanding shares of the Common Stock.
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 925,771 shares of the Common
Stock, which is 14.2% 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 2,704,752 shares of Common Stock, and
(ii) 34,901 shares of Series A Preferred Stock, which are convertible
into 1,540,042 shares of Common Stock. The Reporting Persons may
thus be deemed to have beneficial ownership of 5,170,565 shares or
44.3% of the Common Stock, as follows:
(i) Blum LP and RCBA Inc. may be deemed to have beneficial ownership
of 2,489,738 shares, which represents 21.3% on an as converted basis;
(ii) Blum GP II may be deemed to have beneficial ownership of
2,669,057 shares, which represents 22.8% 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.
CUSIP NO. 69357C503 SCHEDULE 13D Page 14 of 15
(c) During the last 60 days, the following transactions were effected
by either the Reporting Persons or the Issuer:
On August 14, 2006, the Issuer effected a 1-for-10 reverse stock split
of its outstanding Common Stock. Following the reverse stock split,
the new liquidation preference and new conversion price for the Series
A Preferred stock was $120.00 and $2.8405, respectively, and the
conversion price for the Senior Convertible Notes was $6.50.
On September 1, 2006, the Reporting Persons distributed, in a
pro-rata distribution for no consideration, to a limited partner in
one of the limited partnerships for which Blum LP serves as the
general partner, the following securities of the Issuer: 2,936 shares
of Common Stock, the principal amount of $530,323 of Senior Convertible
Notes and 1,105 shares of Series A Preferred Stock.
On September 15, 2006, the Issuer paid interest in-kind to the Reporting
Persons on the Senior Convertible Notes. Interest is due on the Senior
Convertible Notes at a rate of 10% per annum on the principal amount,
payable semi-annually on March 15 and September 15, commencing September
15, 2006. The Issuer can elect to pay interest due in cash or issue new
Senior Convertible Notes. On September 15, 2006, the Issuer issued new
Senior Convertible Notes to the Reporting Persons in the principal amount
of $828,317.
The Series A Preferred Stock accrues dividends at a cumulative annual
rate of 9% of the then-effective liquidation preference per share on
each March 15 and September 15, commencing September 15, 2006. Declared
dividends are paid in cash. When dividends are undeclared on the
dividend payment date, the liquidation preference on the Series A
Preferred Stock will be increased. On September 15, 2006, the Issuer
did not declare dividends on the Series A Preferred Stock, accordingly,
the liquidation preference for the Series A Preferred Stock was increased
to $125.34 per share, or a new conversion ratio of 44.126 shares of Common
Stock for each share of Series A Preferred Stock.
(d) and (e) Not applicable.
Item 7. Material to be Filed as Exhibits
-----------------------------------------
Exhibit A Joint Filing Undertaking
CUSIP NO. 69357C503 SCHEDULE 13D Page 15 of 15
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: October 4, 2006
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 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 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: October 4, 2006
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 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 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