-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 1 of 13 Pages
-------------------------- ------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
(RULE 13D-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13D-1(A) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13D-2(A)
(Amendment No. 2)(1)
LENOX GROUP INC.
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
526262100
(CUSIP Number)
Marc Baum, Esq.
Ramius LLC
599 Lexington
20th Floor
New York, New York 10017
(212) 845-7900
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 23, 2008
(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 Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box [X].
NOTE. Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. SEE Rule 13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 14 Pages)
---------------------
(1) 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 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. 1407N104 13D Page 2 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RAMIUS CREDIT OPPORTUNITIES MASTER FUND LTD
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e)
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,436,023
-------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 1,436,023
-------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,436,023
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.0%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 3 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RAMIUS ENTERPRISE MASTER FUND LTD
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
------------------------------------------------------------------------------
7 SOLE VOTING POWER
264,182
-------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 264,182
-------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
264,182
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.8%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 4 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RAMIUS ADVISORS, LLC
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,700,205
-------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 1,700,205
-------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,700,205
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 5 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RAMIUS LLC
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,700,205
-------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 1,700,205
-------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,700,205
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA, OO
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 6 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
C4S & CO., L.L.C.
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,700,205
-------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 1,700,205
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,700,205
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 7 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
PETER A. COHEN
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
-------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,700,205
OWNED BY --------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH - 0 -
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,700,205
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,700,205
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 8 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
MORGAN B. STARK
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
--------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,700,205
OWNED BY --------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH - 0-
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,700,205
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,700,205
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 9 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
JEFFREY M. SOLOMON
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
--------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,700,205
OWNED BY --------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH - 0 -
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,700,205
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,700,205
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 10 of 14 Pages
-------------------------- ------------------------
==============================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
THOMAS W. STRAUSS
------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[ ]
(b)[X]
------------------------------------------------------------------------------
3 SEC USE ONLY
------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
------------------------------------------------------------------------------
7 SOLE VOTING POWER
- 0 -
--------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,700,205
OWNED BY --------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH - 0 -
--------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,700,205
------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,700,205
------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.8%
------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
==============================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 11 of 14 Pages
-------------------------- ------------------------
The following constitutes Amendment No. 2 ("Amendment No. 2") to the
Schedule 13D filed by the undersigned on May 19, 2008 (the "Schedule 13D"). This
Amendment No. 2 amends the Schedule 13D as specifically set forth.
Item 2. IDENTITY AND BACKGROUND.
Item 2 of the Schedule 13D is hereby amended to add the
following:
As a result of a reorganization of the Reporting Persons and their
affiliates, Ramius Advisors, LLC, a Delaware limited liability company ("Ramius
Advisors"), serves as the investment advisor of Ramius Enterprise Master Fund
Ltd ("Enterprise Master Fund") and Ramius Credit Opportunities Master Fund Ltd
("Ramius Credit Opportunities"). Accordingly, Ramius Advisors is hereby added as
a member of the Section 13(d) group as a Reporting Person. The address of the
principal office of Ramius Advisors is 599 Lexington Avenue, 20th Floor, New
York, New York 10022. The principal business of Ramius Advisors is acting as the
investment advisor of Enterprise Master Fund and Ramius Credit Opportunities.
Ramius is the sole member of Ramius Advisors.
Item 4. PURPOSE OF TRANSACTION.
Item 4 of the Schedule 13D is hereby amended to add the following:
On November 23, 2008, certain of the Reporting Persons and certain
of the other Bank Debt Holders entered into a Plan Support Agreement (the "Plan
Support Agreement") with the Issuer and certain subsidiaries of the Issuer
(collectively, "Lenox") under which the parties thereto agreed to the terms of a
restructuring of Lenox's indebtedness through the sale of substantially all of
Lenox's assets to an entity owned by certain of the Bank Debt Holders, subject
to higher and better offers by third parties, pursuant to either (i) a chapter
11 plan of reorganization, or (ii) upon the occurrence of certain events set out
in the Plan Support Agreement, at the option of the Bank Debt Holders, through
the sale under Section 363 of the Bankruptcy Code in accordance with bidding
procedures set forth in the Plan Support Agreement ((i) and (ii) together, the
"Transaction").
Pursuant to the Plan Support Agreement, the Bank Debt Holders party
thereto agreed, among other things, to form an entity (the "Proposed Purchaser")
and to use their commercially reasonable efforts to cause the Proposed Purchaser
to negotiate in good faith and enter into a purchase agreement with Lenox
pursuant to which the Proposed Purchaser shall agree, in accordance with the
terms and subject to the conditions of such purchase agreement, to consummate
the Transaction. Each Bank Debt Holder party to the Plan Support Agreement
further agrees (i) subject to the receipt of a disclosure statement and to
certain exceptions, to vote all obligations under the Issuer Term Loan held by
such Bank Debt Holder in favor of the Plan (as defined in the Plan Support
Agreement), and to not withdraw or revoke such vote, (ii) not to object to any
DIP financing (except to the extent such DIP financing is inconsistent with the
terms of such financing set out in Plan Support Agreement), (iii) not to object
to, delay, or interfere with the acceptance and implementation of the Plan, or
encourage any person or entity to do the foregoing, (iv) that, provided that
Lenox conducts an auction in accordance with the bidding procedures set forth in
the Plan Support Agreement, if the Proposed Purchaser is not the highest bidder,
it will not object to the sale of the equity in a reorganized Lenox or the sale
of all or substantially all of Lenox's assets to the prevailing bidder, and (v)
except as permitted in the Plan Support Agreement, not to take any other action
that is inconsistent with, or that would be reasonably likely to delay the
consummation of, the restructuring contemplated by the Plan Support Agreement.
The Plan Support Agreement is subject to termination upon the
occurrence of certain events, including, without limitation, (i) the failure of
Lenox to take certain actions by specified milestone dates, (ii) events related
to a change in the nature of the bankruptcy proceeding, or (iii) at the option
of the Required Term Lenders, upon the occurrence of a Material Adverse Change
(as defined in the Plan Support Agreement).
This description of the Plan Support Agreement is a summary only and
is qualified in its entirety by reference to the Plan Support Agreement, of copy
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 12 of 14 Pages
-------------------------- ------------------------
of which is filed as Exhibit 99.3 to this Schedule 13D and is incorporated by
reference herein.
Certain of the Reporting Persons and certain other Bank Debt Holders
have also entered into a Letter Agreement, dated November 23, 2008 (the "Letter
Agreement") in connection with the Plan Support Agreement. Under the Letter
Agreement, the Bank Debt Holders party thereto each have agreed (i) to form the
Proposed Purchaser, which will be governed in accordance with the terms and
conditions set forth in the Letter Agreement, or on such alternate terms as are
reasonably satisfactory to Bank Debt Holders holding at least sixty six and
two-thirds percent (66 2/3%) of the amount due under the Issuer Term Loan, (ii)
to contribute its pro rata share of the Obligations (as such term is defined in
the Issuer Term Loan) to the Proposed Purchaser, (iii) that any bid by the
Proposed Purchaser to purchase assets of Lenox will be on the terms and subject
to conditions consistent with those set forth in the Letter Agreement, (iv) that
the Required Lenders (as defined in the Issuer Term Loan) may direct the Term
Loan Agent under the Issuer Term Loan to submit one or more credit bids for the
assets of Lenox in an aggregate amount not to exceed the total amount due under
the Issuer Term Loan, (v) that any asset purchase agreement to be delivered by
the Proposed Purchaser shall be consistent with the terms set out in the Letter
Agreement and (vi) to pay, in accordance with each's pro rata share, all costs
and expenses incurred in connection with the transactions contemplated by the
Letter Agreement that are not reimbursed by a third party. In addition, the
Letter Agreement subjects the rights of Bank Debt Holders to sell or transfer
any claims arising under the Issuer Term Loan to certain restrictions, including
compliance with a right of first refusal granted to other Bank Debt Holders.
This description of the Letter Agreement is a summary only and is
qualified in its entirety by reference to the Letter Agreement, of copy of which
is filed as Exhibit 99.4 to this Schedule 13D and is incorporated by reference
herein.
In addition, the first and last paragraphs of Item 4 of the
Schedule 13D are hereby amended and restated as follows:
The Reporting Persons originally purchased the Shares based on the
Reporting Persons' belief that the purchased, were undervalued and represented
an attractive investment opportunity. Depending upon overall market conditions,
the success of the restructuring described below, other investment opportunities
available to the Reporting Persons, and the availability of Shares at prices
that would make the purchase or sale of Shares desirable, the Reporting Persons
may endeavor to increase or decrease their position in the Issuer through, among
other things, the purchase or sale of Shares on the open market or in private
transactions or otherwise, on such terms and at such times as the Reporting
Persons may deem advisable.
No Reporting Person has any present plan or proposal which would
relate to or result in any of the matters set forth in subparagraphs (a) - (j)
of Item 4 of Schedule 13D except as set forth herein or such as would occur upon
completion of any of the actions discussed herein. The Reporting Persons intend
to review their investment in the Issuer on a continuing basis. Depending on
various factors including, without limitation, the Issuer's financial position
and investment strategy, the success of the restructuring described above, the
price levels of the Shares, conditions in the securities markets and general
economic and industry conditions, the Reporting Persons may in the future take
such actions with respect to their investment in the Issuer as they deem
appropriate including, without limitation, communicating with management and the
Board of the Issuer, nominating or recommending candidates to serve as members
of the Issuer's Board, making proposals to the Issuer concerning changes to the
capitalization, ownership structure or operations of the Issuer, purchasing
additional Shares, selling some or all of their Shares, engaging in short
selling of or any hedging or similar transaction with respect to the Shares, or
changing their intention with respect to any and all matters referred to in Item
4.
Item 5. INTEREST IN SECURITIES OF THE ISSUER.
Paragraphs (a), (b) and (c) of Item 5 of the Schedule 13D are hereby
amended and restated as follows:
The aggregate percentage of Shares reported owned by each person
named herein is based upon 14,429,998 Shares outstanding, as of August 4, 2008,
which is the total number of Shares outstanding as reported in the Issuer's
Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission
on August 7, 2008 for the period ended June 28, 2008.
A. Ramius Credit Opportunities
(a) As of the close of business on November 24, 2008, Ramius Credit
Opportunities beneficially owned 1,436,023 Shares.
Percentage: Approximately 10.0%.
(b) 1. Sole power to vote or direct vote: 1,436,023
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,436,023
4. Shared power to dispose or direct the disposition: 0
(c) No transactions in the Shares have been effected by Ramius Credit
Opportunities in the last 60 days.
B. Enterprise Master Fund
(a) As of the close of business on November 24, 2008, Enterprise Master
Fund beneficially owned 264,182 Shares.
Percentage: Approximately 1.8%.
(b) 1. Sole power to vote or direct vote: 264,182
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 264,182
4. Shared power to dispose or direct the disposition: 0
(c) No transactions in the Shares have been effected by Enterprise Master
Fund in the last 60 days.
C. Ramius Advisors
(a) As of the close of business on November 24, 2008, as the investment
advisor of Ramius Credit Opportunities and Enterprise Master Fund,
Ramius Advisors may be deemed the beneficial owner of the (i)
1,436,023 Shares owned by Ramius Credit Opportunities and (ii) 264,182
Shares owned by Enterprise Master Fund.
Percentage: Approximately 11.8%.
(b) 1. Sole power to vote or direct vote: 1,700,205
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,700,205
4. Shared power to dispose or direct the disposition: 0
(c) No transactions in the Shares have been effected by Ramius Advisors in
the last 60 days.
D. Ramius
(a) As of the close of business on November 24, 2008, as the sole member
of Ramius Credit Opportunities and the investment manager of
Enterprise Master Fund, Ramius may be deemed the beneficial owner of
the (i) 1,436,023 Shares owned by Ramius Credit Opportunities and (ii)
264,182 Shares owned by Enterprise Master Fund.
Percentage: Approximately 11.8%.
(b) 1. Sole power to vote or direct vote: 1,700,205
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,700,205
4. Shared power to dispose or direct the disposition: 0
(c) No transactions in the Shares have been effected by Ramius in the last
60 days.
E. C4S
(a) As of the close of business on November 24, 2008, as the managing
member of Ramius, C4S may be deemed the beneficial owner of the (i)
1,436,023 Shares owned by Ramius Credit Opportunities and (ii) 264,182
Shares owned by Enterprise Master Fund.
Percentage: Approximately 11.8%.
(b) 1. Sole power to vote or direct vote: 1,700,205
2. Shared power to vote or direct vote: 0
3. Sole power to dispose or direct the disposition: 1,700,205
4. Shared power to dispose or direct the disposition: 0
(c) No transactions in the Shares have been effected by C4S in the last 60
days.
F. Mr. Cohen, Mr. Stark, Mr. Strauss and Mr. Solomon
(a) As of the close of business on November 24, 2008, as the managing
members of C4S, each of Mr. Cohen, Mr. Stark, Mr. Strauss and Mr.
Solomon may be deemed the beneficial owner of the (i) 1,436,023 Shares
owned by Ramius Credit Opportunities and (ii) 264,182 Shares owned by
Enterprise Master Fund.
Percentage: Approximately 11.8%.
1. Sole power to vote or direct vote: 0
2. Shared power to vote or direct vote: 1,700,205
-------------------------- ------------------------
CUSIP No. 1407N104 13D Page 13 of 14 Pages
-------------------------- ------------------------
3. Sole power to dispose or direct the disposition: 0
4. Shared power to dispose or direct the disposition: 1,700,205
(c) No transactions in the Shares have been effected by Mr. Cohen, Mr.
Stark, Mr. Strauss or Mr. Solomon in the last 60 days.
On September 15, 2008, 1,435,023 shares of Common Stock reported
herein as being beneficially owned by Ramius Credit Opportunities and 263,182
shares of Common Stock reported herein as being beneficially owned by Enterprise
Master Fund (the "Frozen Shares") were frozen in Ramius Credit Opportunities'
and Enterprise Master Fund's respective prime brokerage accounts as a result of
Lehman Brothers International (Europe) ("LBIE") being placed in administration.
LBIE, through certain of its affiliates, was a prime broker for Ramius Credit
Opportunities and Enterprise Master Fund. The current status of the Frozen
Shares under LBIE's administration proceedings has not been determined. The
Reporting Persons claim beneficial ownership over the Frozen Shares until such
time a final determination concerning the Frozen Shares is made.
Item 7. MATERIAL TO BE FILED AS EXHIBITS.
Item 7 of the Schedule 13D is hereby amended to add the following:
Exhibit 99.3 Plan Support Agreement, dated November 23, 2008.
Exhibit 99.4 Letter Agreement, dated November 23, 2008.
Exhibit 99.5 Joint Filing Agreement by and among Ramius Credit
Opportunities Master Fund Ltd, Ramius Enterprise Master Fund Ltd, Ramius
LLC, Ramius Advisors, LLC, C4S & Co., L.L.C., Peter A. Cohen, Morgan B.
Stark, Thomas W. Strauss and Jeffrey M. Solomon, dated November 26, 2008.
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CUSIP No. 1407N104 13D Page 14 of 14 Pages
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SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: November 26, 2008
RAMIUS CREDIT OPPORTUNITIES RAMIUS ENTERPRISE
MASTER FUND LTD MASTER FUND LTD
By: Ramius Advisors, LLC By: Ramius Advisors, LLC
its investment advisor its investment advisor
By: Ramius LLC, By: Ramius LLC,
its sole member its sole member
By: C4S & Co., L.L.C., By: C4S & Co., L.L.C.,
as managing member as managing member
RAMIUS LLC C4S & CO., L.L.C.
By: C4S & Co., L.L.C., RAMIUS ADVISORS, LLC
as managing member
By: Ramius LLC
its sole member
By: /s/ Jeffrey M. Solomon
-------------------------
Name: Jeffrey M. Solomon
Title: Authorized Signatory
JEFFREY M. SOLOMON
/s/ Jeffrey M. Solomon
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Individually and as attorney-in-
fact for Peter A. Cohen, Morgan B.
Stark and Thomas W. Strauss