UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
REGENCY AFFILIATES, INC.
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(Name of Issuer)
Common Stock, $0.01 par value per share
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(Title of Class of Securities)
758847107
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(CUSIP Number)
Todd J. Emmerman, Esq.
c/o Kattan Muchin Zavis Rosenman
575 Madison Avenue
New York, New York 10022
(212) 940-8873
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(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 Rule 13d-1 (b)(3) or (4), check the following box |_|.
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) 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 (the "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. 758847107 13D Page 2 of 8
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Royalty Holdings LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
1,752,049 Shares(1)
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 1,752,049 Shares(1)
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,752,049 Shares(1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
59.34%(1)
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14 TYPE OF REPORTING PERSON*
OO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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(1) Does not give effect to shares of Common Stock issuable in respect of
accrued and unpaid interest under the Convertible Note (as defined
herein).
CUSIP No. 758847107 13D Page 3 of 8
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Royalty Management, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
1,752,049 Shares(1) (comprised of shares owned by Royalty
Holdings LLC)
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 1,752,049 Shares(1) (comprised of shares owned by Royalty
WITH Holdings LLC)
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,752,049 Shares(1) (comprised of shares owned by Royalty Holdings LLC)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
59.34%(1)
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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(1) Does not give effect to shares of Common Stock issuable in respect of
accrued and unpaid interest under the Convertible Note (as defined
herein).
CUSIP No. 758847107 13D Page 4 of 8
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Laurence S. Levy
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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7 SOLE VOTING POWER
1,777,049 Shares(1) (comprised of 1,752,049 shares owned
by Regency Holdings LLC and options
to acquire 25,000 shares to be issued
to Mr. Levy)
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,777,049 Shares(1) (comprised of 1,752,049 shares owned
by Regency Holdings LLC and options
to acquire 25,000 shares to be issued
to Mr. Levy)
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,777,049 Shares(1) (comprised of 1,752,049 shares owned by Regency
Holdings LLC and options to acquire 25,000 shares to
be issued to Mr. Levy)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
59.68%(1)
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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(1) Does not give effect to shares of Common Stock issuable in respect of
accrued and unpaid interest under the Convertible Note (as defined
herein).
CUSIP No. 758847107 13D Page 5 of 8
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Neil N. Hasson
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United Kingdom
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7 SOLE VOTING POWER
25,000 Shares (comprised of options to acquire 25,000
shares to be issued to Mr. Hasson)
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NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 25,000 Shares (comprised of options to acquire 25,000
WITH shares to be issued to Mr. Hasson)
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
25,000 Shares (comprised of options to acquire 25,000 shares to be issued
to Mr. Hasson)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.27%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
This Amendment No. 1 is filed by (i) Royalty Holdings LLC ("Royalty
LLC"), (ii) Royalty Management, Inc. ("Royalty Inc."), (iii) Laurence S. Levy
and (iv) Neil N. Hasson (collectively, the "Reporting Persons") and amends the
Statement on Schedule 13D (the "Schedule 13D") filed by the Reporting Persons on
October 28, 2002. Capitalized terms used but not otherwise defined herein shall
have the meanings ascribed to such terms in the Schedule 13D.
Item 3. Source and Amount of Funds or Other Consideration.
Item 3 is hereby amended as follows:
On November 7, 2002, Royalty LLC, the holder of a Convertible
Promissory Note of the Company due October 16, 2012 (the "Convertible Note") in
the principal amount of $3,500,000, converted $1,495,902 of the principal amount
of the Note (and all accrued and unpaid interest on such amount) into 750,000
shares of the Company's Common Stock, at an exercise price of $2.00 per share.
Item 5. Interest in Securities of the Issuer.
(a) Item 5(a) is hereby amended and restated as follows:
As of the close of business on November 7, 2002:
(i) Royalty LLC is the beneficial owner of 1,752,049 shares of
Common Stock (plus shares issuable in respect of accrued and unpaid interest
under the Convertible Note), comprised of 750,000 shares of Common Stock as well
as 1,002,049 shares of Common Stock issuable to Royalty LLC upon conversion of
the Convertible Note. Such shares constitute approximately 59.34% of the shares
of Common Stock outstanding (assuming conversion of the Convertible Note);
(ii) Royalty Inc. owns no shares of Common Stock. As the Manager of
Royalty LLC Royalty Inc. may be deemed, under the provisions of Rule 13d-3 of
the Exchange Act Rule, to be the beneficial owner of the 1,752,049 shares of
Common Stock (plus shares issuable in respect of accrued and unpaid interest
under the Convertible Note) that are beneficially owned by Royalty LLC. Such
shares of Common Stock constitute approximately 59.34% of the shares of Common
Stock outstanding (assuming conversion of the Convertible Note);
(iii) As President, sole director and sole stockholder of Royalty
Inc., which is the Manager of Royalty LLC, Mr. Levy may be deemed, under the
provisions of Rule 13d-3 of the Exchange Act Rules, to be the beneficial owner
of the 1,752,049 shares beneficially owned by Royalty LLC (plus shares issuable
in respect of accrued and unpaid interest under the Convertible Note). In
addition, pursuant to an employment agreement with the Company, Mr. Levy is
entitled to receive options to purchase an additional 25,000 shares of Common
Stock. The foregoing shares of Common Stock that may be deemed to be
beneficially owned by Mr. Levy, in the aggregate, constitute approximately
59.68% of the shares of Common Stock outstanding (assuming conversion of the
Convertible Note and exercise of such options); and
Page 6 of 8
(iv) Pursuant to an employment agreement with the Company, Mr.
Hasson is entitled to receive options to purchase 25,000 shares of Common Stock.
Such shares of Common Stock constitute approximately 1.27% of the shares of
Common Stock outstanding (assuming exercise of such options).
(c) Item 5(c) is hereby amended as follows:
Reference is made to Item 3 above.
Page 7 of 8
SIGNATURE
After reasonable inquiry and to the best of their knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: November 7, 2002
ROYALTY HOLDINGS LLC
By: Royalty Management, Inc., Manager
By: /s/ Laurence S. Levy
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Name: Laurence S. Levy
Title: President
ROYALTY MANAGEMENT, INC.
By: /s/ Laurence S. Levy
---------------------------------
Name: Laurence S. Levy
Title: President
/s/ Laurence S. Levy
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Laurence S. Levy
/s/ Neil N. Hasson
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Neil N. Hasson