SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 24)
INCOME OPPORTUNITY REALTY INVESTORS, INC.
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
452926-10-8
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(CUSIP Number)
Robert A. Waldman
1800 Valley View Lane, Suite 300
Dallas, Texas 75234
(469) 522-4366
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
June 2, 2003
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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 Rules 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 persons's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
CUSIP No. 452926-10-8
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
American Realty Investors, Inc., FEI No. 75-2847135
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3) SEC Use Only
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4) Source of Funds (See Instructions)
OO
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5) Check 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
Nevada
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7) Sole Voting Power -0-
Number of --------------------------------------------------------------
Shares Bene-
ficially 8) Shared Voting Power -0-
Owned by --------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
-0-
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
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13) Percent of Class Represented by Amount in Row (11)
0.0%
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14) Type of Reporting Person (See Instructions)
CO
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CUSIP No. 452926-10-8
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
American Realty Trust, Inc., FEI No. 54-0697989
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3) SEC Use Only
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4) Source of Funds (See Instructions)
OO
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5) Check 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
Georgia
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7) Sole Voting Power -0-
Number of --------------------------------------------------------------
Shares Bene-
ficially 8) Shared Voting Power -0-
Owned by --------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
-0-
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
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13) Percent of Class Represented by Amount in Row (11)
0.0%
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14) Type of Reporting Person (See Instructions)
CO
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CUSIP No. 452926-10-8
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
EQK Holdings, Inc., FEI No. 75-2931679
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3) SEC Use Only
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4) Source of Funds (See Instructions)
OO
--------------------------------------------------------------------------------
5) Check 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
Nevada
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7) Sole Voting Power -0-
Number of --------------------------------------------------------------
Shares Bene-
ficially 8) Shared Voting Power -0-
Owned by --------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
-0-
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
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13) Percent of Class Represented by Amount in Row (11)
0.0%
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14) Type of Reporting Person (See Instructions)
CO
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CUSIP No. 452926-10-8
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Basic Capital Management, Inc., FEI No. 75-2261065
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3) SEC Use Only
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4) Source of Funds (See Instructions)
OO
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
Nevada
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7) Sole Voting Power -0-
Number of --------------------------------------------------------------
Shares Bene-
ficially 8) Shared Voting Power -0-
Owned by --------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
-0-
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
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13) Percent of Class Represented by Amount in Row (11)
0.0%
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14) Type of Reporting Person (See Instructions)
CO
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CUSIP No. 452926-10-8
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Transcontinental Reality Investors, Inc., FEI No. 94-6565852
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3) SEC Use Only
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4) Source of Funds (See Instructions)
WC
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5) Check 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
Nevada
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7) Sole Voting Power 345,728
Number of --------------------------------------------------------------
Shares Bene-
ficially 8) Shared Voting Power -0-
Owned by --------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power 345,728
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
345,728
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
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13) Percent of Class Represented by Amount in Row (11)
24%
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14) Type of Reporting Person (See Instructions)
CO
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CUSIP No. 452926-10-8
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1) Names of Reporting Persons I.R.S. Identification Nos. of Above Persons
(entities only)
Income Opportunity Acquisition Corporation, FEI No. 13-4243609
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2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3) SEC Use Only
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4) Source of Funds (See Instructions)
OO
--------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
--------------------------------------------------------------------------------
6) Citizenship or Place of Organization
Nevada
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7) Sole Voting Power -0-
Number of --------------------------------------------------------------
Shares Bene-
ficially 8) Shared Voting Power -0-
Owned by --------------------------------------------------------------
Each Report-
ing Person 9) Sole Dispositive Power -0-
With --------------------------------------------------------------
10) Shared Dispositive Power -0-
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11) Aggregate Amount Beneficially Owned by Each Reporting Person
-0-
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12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
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13) Percent of Class Represented by Amount in Row (11)
0.0%
--------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions)
CO
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ITEM 1. SECURITY AND ISSUER
This Amendment No. 24 to Statement on Schedule 13D relates to the
shares of Common Stock, par value $0.01 per share (the "Shares") of INCOME
OPPORTUNITY REALTY INVESTORS, INC., a Nevada corporation ("IOT" or the "Company"
or the "Issuer") and further amends the original Statement on Schedule 13D as
amended by Amendment Nos. 1 through 23 thereof (the "Amended Statement") filed
by and on behalf of the "Reporting Persons" described below. The principal
executive offices of the Company are located at 1800 Valley View Lane, Suite
300, Dallas, Texas 75234. The CUSIP number of the Shares is 452926-10-8.
This Amendment No. 24 to Schedule 13D is being filed to reflect various
changes in the information contained in the Amended Statement, including the
disposition through certain transactions of a total of 781,773 Shares by certain
of the Reporting Persons which resulted in the beneficial ownership of the
Reporting Persons being decreased by approximately 54.3% of the number of Shares
of the Issuer outstanding.
ITEM 2. IDENTITY AND BACKGROUND
Item 2 of the Amended Statement is hereby further amended as follows:
This Amendment is being filed on behalf of American Realty Investors,
Inc., a Nevada corporation ("ARL"), its wholly-owned subsidiaries, Income
Opportunity Acquisition Corporation, a Nevada corporation ("IOT AcqSub"),
American Realty Trust, Inc., a Georgia corporation ("ART"), and its wholly-owned
subsidiary, EQK Holdings, Inc., a Nevada corporation ("EQK"), Basic Capital
Management, Inc., a Nevada corporation ("BCM"), IOT AcqSub and Transcontinental
Realty Investors, Inc., a Nevada corporation ("TCI"), each of which have their
principal executive offices located at 1800 Valley View Lane, Suite 300, Dallas,
Texas 75234. All of ARL, ART, EQK, IOT AcqSub, BCM and TCI are collectively
referred to as the "Reporting Persons." The Reporting Persons may be deemed to
constitute a "person" within the meaning of Section 13(d) of the Securities
Exchange Act of 1934, as amended, because (i) EQK is a wholly-owned subsidiary
of ART. ART and IOT AcqSub are each wholly-owned subsidiaries of ARL, (ii) BCM
owns approximately 76.2% of the outstanding securities of ARL, and (iii) BCM
serves as the Advisor to ARL and TCI.
On May 23, 2003, ARL issued a press release announcing that ARL's Board
of Directors determined that it was not in the best interest of ARL to continue
to pursue previously proposed mergers of IOT and TCI into subsidiaries of ARL.
As a result, ARL requested the consent of the Securities and Exchange Commission
(the "SEC") to ARL's withdrawal of its Registration Statement on Form S-4 (No.
333-83292) relating to the issuance of ARL stock in connection with the proposed
mergers which request effectively terminates such proposed mergers. All
references in the Amended Statement to such proposed mergers are now deleted.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
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Item 5 of the Amended Statement is hereby further amended as follows:
(a) According to the latest information available from the Issuer, as
of April 30, 2003, the total number of issued and outstanding Shares was
1,438,945 Shares. As of June 2, 2003, the following Shares were owned directly
and beneficially by the Reporting Persons set forth below:
Name No. of Shares Owned Approximate % Class
---------------------------------------- ------------------------------------- -------------------------------------
EQK -0- 0.0%
ART -0- 0.0%
ARL -0- 0.0%
BCM -0- 0.0%
TCI 345,728 24.0%
IOT AcqSub -0- 0.0%
----
Totals: 345,728 24.0%
======= =====
Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934 (the
"Exchange Act"), each of the directors of TCI may be deemed to beneficially own
the Shares held directly by TCI. Those individuals and the number of Shares
deemed beneficially owned pursuant to Rule 13d-3, and the approximate percent of
the class, as well as the relationship, are set forth in the following table:
No. of Shares Beneficially % of
Name of Director Entity Owned Class
---------------- ------ ----- -----
Earl D. Cecil TCI 345,728 24.0%
Ted P. Stokley TCI 345,728 24.0%
Henry A. Butler TCI 345,728 24.0%
Martin L. White TCI 345,728 24.0%
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Total Shares beneficially owned 345,728 24.0%
by Reporting Persons and ======= =====
individua listed above:
(b) Each of the directors of TCI have shared voting and dispositive
power over the 345,728 Shares held by TCI.
(c) During the 60 calendar days ended June 2, 2003, the Reporting
Persons and their respective executive officers and directors did not engage in
any transaction in the Shares or any other equity interest derivative thereof
except as follows:
(i) On March 18, 2003, IOT AcqSub purchased 265,036 Shares
pursuant to a cash tender offer at $19 per share (a total of
$5,035,684) the consideration for which came from the working capital
of IOT AcqSub.
(ii) On June 2, 2003, IOT AcqSub distributed as a dividend to
ARL all 265,036 Shares at a value of $19 per share.
(iii) On June 2, 2003, ARL made a contribution to the capital
of ART of the 265,036 Shares received from IOT AcqSub
-2-
at a value of $19 per share, and ART in turn made a contribution to the
capital of EQK of the same 265,036 Shares at a value of $19 per share
which, when added together with the 409,935 Shares held by EQK resulted
in EQK holding a total of 674,971 Shares.
(iv) Pursuant to a Stock Transfer Agreement dated June 2, 2003
(the "Transfer Agreement") between EQK and BCM, EQK sold to BCM, and
BCM acquired from EQK, 674,971 Shares at a purchase price of $18.45 per
share (a total of $12,453,214) for which BCM paid and delivered to EQK
(x) 650,000 shares of TCI at a price of $18.35 per share (a total of
$11,972,500), and (y) BCM's promissory note payable to the order of EQK
in the stated principal amount of $525,714 bearing interest and payable
as set forth therein (the "BCM Note"). The BCM Note bears interest at
the Wall Street Journal prime rate plus 2% per annum, is unsecured and
matures on June 30, 2004. The result of such transaction was that BCM
acquired 674,971 Shares which, together with the 106,802 Shares held by
BCM resulted in BCM owning and holding a total of 781,773 Shares
(approximately 54.3% of the issued and outstanding IOT Shares).
(v) On June 2, 2003, BCM entered into a Stock Purchase
Agreement with Syntek West, Inc., a Nevada corporation ("SWI"),
pursuant to which BCM sold to SWI all 781,773 Shares at a price of
$18.45 per share in cash (a total of $14,423,711), the purchase price
for which was paid by SWI crediting the principal balance outstanding
on a promissory note issued by BCM payable to the order of SWI in the
stated principal amount of $21,000,000, which bears interest at the
Wall Street Journal prime rate plus 2% per annum and matures on June
30, 2004.
After giving effect to the foregoing transactions, each of IOT AcqSub, ARL, ART
and BCM ceased to be the holder of any Shares of IOT, leaving only TCI as a
Reporting Person holding and owning 345,728 Shares which constitute
approximately 24% of the total issued and outstanding IOT Shares.
(d) No person other than the Reporting Person or its respective Board
of Directors is known to have the right to receive or the power to direct
receipt of dividends from, or the proceeds of sale of, the Shares held by each
of the Reporting Persons, subject to the matters set forth in Item 6 below.
(e) After giving effect to the transactions occurring on June 2, 2003,
among IOT AcqSub, ARL, ART, EQK and BCM, IOT AcqSub, ARL, ART, EQK and BCM each
cease to be the holder of any Shares of IOT, and cease to be the beneficial
owners of more than 5% of the shares of IOT, leaving only TCI as a Reporting
Person holding and owning 345,728 Shares which represent approximately 24% of
the issued and outstanding IOT Shares. Therefore, the date on which IOT AcqSub,
ARL, ART, EQK and BCM ceased
-3-
to be the beneficial owners of more than 5% of the Shares was June 2, 2003.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
Item 6 of the Amended Statement is hereby further amended to read as
follows:
All 345,728 Shares owned by TCI are located at a brokerage firm in a
cash account (not margin account), and do not serve as "collateral" for any
borrowings pursuant to any margin account arrangement or otherwise.
Except as set forth in the preceding paragraphs, the Reporting Persons
do not have any contracts, arrangements, understandings or relationships (legal
or otherwise) with any person with respect to any securities of the Issuer,
including, but not limited to, transfer or voting of any of the securities,
finder's fees, joint ventures, loan or option arrangements, puts or calls,
guaranties of profits, division of profits or losses, or the giving or
withholding of proxies.
SIGNATURES
After reasonable inquiry and to the best of their respective knowledge
and belief, the undersigned certify that the information set forth in this
Amendment No. 24 to Statement on Schedule 13D is true, complete and correct.
Dated: June 3, 2003.
AMERICAN REALTY INVESTORS, INC.
/s/ Ronald E. Kimbrough
By:
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Ronald E. Kimbrough
Executive Vice President
AMERICAN REALTY TRUST, INC.
/s/ Ronald E. Kimbrough
By:
--------------------------------------
Ronald E. Kimbrough,
Executive Vice President
EQK HOLDINGS, INC.
/s/ Ronald E. Kimbrough
By:
--------------------------------------
Ronald E. Kimbrough,
Vice President
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BASIC CAPITAL MANAGEMENT, INC.
/s/ Ronald E. Kimbrough
By:
--------------------------------------
Ronald E. Kimbrough,
Executive Vice President
TRANSCONTINENTAL REALTY INVESTORS, INC.
/s/ Ronald E. Kimbrough
By:
--------------------------------------
Ronald E. Kimbrough,
Executive Vice President
INCOME OPPORTUNITY ACQUISITION
CORPORATION
/s/ Ronald E. Kimbrough
By:
--------------------------------------
Ronald E. Kimbrough, President
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