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SCHEDULE 13D
(AMENDMENT NO. 11)
Under the Securities Exchange Act of 1934
PRG-SCHULTZ INTERNATIONAL, INC.
--------------------------------------------------------------------------------
(Name of Company)
Common Stock
--------------------------------------------------------------------------------
(Title of Class of Securities)
69357C107
--------------------------------------------------------------------------------
(CUSIP Number of Class of Securities)
Andre Weiss, Esq.
Schulte Roth & Zabel LLP
919 Third Avenue
New York, New York 10022
(212) 756-2431
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 28, 2005
--------------------------------------------------------------------------------
(Date of Event which Requires
Filing of this Schedule)
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 ss.ss.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 ss.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).
SCHEDULE 13D
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 2 OF 10 PAGES
----------------------------------- -----------------------------------
--------- ----------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BLUM CAPITAL PARTNERS, L.P. I.R.S. ID: 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 PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
------------------ ------- -----------------------------------------------------
7 SOLE VOTING POWER
0
------- -----------------------------------------------------
Number of 8 SHARED VOTING POWER
Shares
Beneficially 13,939,012 shares (including 4,651,939 shares
Owned by issuable upon conversion of notes and payable as
Each shares of interest under the notes) (see Item 5)
Reporting ------- -----------------------------------------------------
Person With 9 SOLE DISPOSITIVE POWER
0
------- -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable as
shares of interest under the notes) (see Item 5)
--------- ----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see Item
5)
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
20.8% (see Item 5)
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN, IA
--------- ----------------------------------------------------------------------
SCHEDULE 13D
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 3 OF 10 PAGES
----------------------------------- -----------------------------------
--------- ----------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
RICHARD C. BLUM & ASSOCIATES, INC. I.R.S. ID: 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 PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
------------------ ------- -----------------------------------------------------
7 SOLE VOTING POWER
0
------- -----------------------------------------------------
Number of 8 SHARED VOTING POWER
Shares
Beneficially 13,939,012 shares (including 4,651,939 shares
Owned by issuable upon conversion of notes and payable as
Each shares of interest under the notes) (see Item 5)
Reporting ------- -----------------------------------------------------
Person With 9 SOLE DISPOSITIVE POWER
0
------- -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable as
shares of interest under the notes) (see Item 5)
--------- ----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see Item
5)
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.8% (see Item 5)
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
--------- ----------------------------------------------------------------------
SCHEDULE 13D
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 4 OF 10 PAGES
----------------------------------- -----------------------------------
--------- ----------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BLUM STRATEGIC GP, L.L.C. I.R.S. ID: 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 PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------ ------- -----------------------------------------------------
7 SOLE VOTING POWER
0
------- -----------------------------------------------------
Number of 8 SHARED VOTING POWER
Shares
Beneficially 13,939,012 shares (including 4,651,939 shares
Owned by issuable upon conversion of notes and payable as
Each shares of interest under the notes) (see Item 5)
Reporting ------ -----------------------------------------------------
Person With 9 SOLE DISPOSITIVE POWER
0
------- -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable as
shares of interest under the notes) (see Item 5)
--------- ----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see Item
5)
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
20.8% (see Item 5)
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------- ----------------------------------------------------------------------
SCHEDULE 13D
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 5 OF 10 PAGES
----------------------------------- -----------------------------------
--------- ----------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BLUM STRATEGIC PARTNERS II, L.P. I.R.S. ID: 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 PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
California
------------------ ------- -----------------------------------------------------
7 SOLE VOTING POWER
0
------- -----------------------------------------------------
Number of 8 SHARED VOTING POWER
Shares
Beneficially 13,939,012 shares (including 4,651,939 shares
Owned by issuable upon conversion of notes and payable as
Each shares of interest under the notes) (see Item 5)
Reporting ------- ----------------------------------------------------
Person With 9 SOLE DISPOSITIVE POWER
0
------- -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable as
shares of interest under the notes) (see Item 5)
--------- ----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see Item
5)
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) (see Item 5)
20.8% (see Item 5)
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------- ----------------------------------------------------------------------
SCHEDULE 13D
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 6 OF 10 PAGES
----------------------------------- -----------------------------------
--------- ----------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
BLUM STRATEGIC GP II, L.L.C. I.R.S. ID: 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 PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[ ]
--------- ----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
------------------ ------- -----------------------------------------------------
7 SOLE VOTING POWER
0
------- -----------------------------------------------------
Number of 8 SHARED VOTING POWER
Shares
Beneficially 13,939,012 shares (including 4,651,939 shares
Owned by issuable upon conversion of notes and payable as
Each shares of interest under the notes) (see Item 5)
Reporting ------- -----------------------------------------------------
Person With 9 SOLE DISPOSITIVE POWER
0
------- -----------------------------------------------------
10 SHARED DISPOSITIVE POWER
13,939,012 shares (including 4,651,939 shares
issuable upon conversion of notes and payable as
shares of interest under the notes) (see Item 5)
--------- ----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
13,939,012 shares (including 4,651,939 shares issuable upon conversion
of notes and payable as shares of interest under the notes) (see Item
5)
--------- ----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
--------- ----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.8% (see Item 5)
--------- ----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------- ----------------------------------------------------------------------
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 7 OF 10 PAGES
----------------------------------- -----------------------------------
This Amendment No. 11 amends the Statement on Schedule 13D (the "Schedule 13D")
filed with the Securities and Exchange Commission (the "Commission") on
September 2, 2003 by Blum Capital Partners, L.P., a California limited
partnership, ("Blum L.P."); 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") (collectively, the "Reporting
Persons"); and Richard C. Blum. This amendment to the Schedule 13D relates to
the shares of Common Stock (the "Shares") of PRG-Schultz International, Inc., a
Georgia corporation (the "Company"). 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 4. PURPOSE OF TRANSACTION.
Item 4 of the Schedule 13D is hereby supplemented by the following:
On November 14, 2005, the Reporting Persons entered into a 2005 Amended
and Restated Standstill Agreement with the Company which amends and supersedes
the Amended and Restated Standstill Agreement by and among the Reporting Persons
and the Company dated as of August 21, 2002. A copy of the Amended and Restated
Standstill Agreement is attached as an exhibit hereto and incorporated into this
Item 4 by reference.
On November 25, 2005, the Reporting Persons and the Company executed a
Confidentiality Agreement relating to the Reporting Persons membership on the ad
hoc committee of holders of the Company's 4 3/4% Convertible Subordinated Notes
due 2006 (the "Notes" and such committee the "Ad Hoc Committee"), which amends
and supersedes the Confidentiality Agreement by and among the Reporting Persons
and the Company dated November 14, 2005. A copy of the Confidentiality Agreement
is attached as an exhibit hereto and incorporated into this Item 4 by reference.
On November 28, 2005, the Ad Hoc Committee entered into a Commitment
Letter with the Company with respect to a proposed $8 million financing facility
to permit an interest payment on the Notes and to provide additional working
capital to the Company (the "Commitment Letter"). A copy of the Commitment
Letter is attached as an exhibit hereto and incorporated into this Item 4 by
reference.
Except as set forth above, the Reporting Persons have no oral or written
agreements, understandings or arrangements with each other or any other person
relating to acquiring, holding, voting or disposing of any securities of the
Company or otherwise with respect to the Company.
Although the foregoing represents the range of activities presently
contemplated by the Reporting Persons with respect to the Company, it should be
noted that the possible activities of the Reporting Persons are subject to
change at any time. Except to the extent the foregoing may be deemed a plan or
proposal, none of the Reporting Persons has any plans or proposals which
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 8 OF 10 PAGES
----------------------------------- -----------------------------------
relate to, or could result in, any of the matters referred to in paragraphs (a)
through (j), inclusive, of the instructions to Item 4 of Schedule 13D. Subject
to the Commitment Letter, the Reporting Persons may, at any time and from time
to time, review or reconsider their position and/or change their purpose and/or
formulate plans or proposals with respect thereto.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE COMPANY.
The Commitment Letter, the Amended and Restated Standstill Agreement and
the Confidentiality Agreement are incorporated by reference into this Item 6.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Joint Filing Agreement dated November 30, 2005.
2. 2005 Amended and Restated Standstill Agreement, dated November 14, 2005,
among the Reporting Persons and the Company.
3. Confidentiality Agreement dated November 25, 2005, among the Reporting
Persons and the Company.
4. Commitment Letter, dated November 28, 2005 among the Reporting Persons and
the Company.
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 9 OF 10 PAGES
----------------------------------- -----------------------------------
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 30, 2005
BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /S/ GREGORY D. HITCHAN
----------------------
Name: Gregory D. Hitchan
Title: Counsel and Secretary
RICHARD C. BLUM & ASSOCIATES, INC.
By: /S/ GREGORY D. HITCHAN
----------------------
Name: Gregory D. Hitchan
Title: Counsel and Secretary
BLUM STRATEGIC GP, L.L.C.
By: /S/ GREGORY D. HITCHAN
----------------------
Name: Gregory D. Hitchan
Title: Member and General Counsel
BLUM STRATEGIC PARTNERS II, L.P.
By: Blum Strategic GP II, L.L.C.,
Its General Partner
By: /S/ GREGORY D. HITCHAN
----------------------
Name: Gregory D. Hitchan
Title: Member and General Counsel
BLUM STRATEGIC GP II, L.L.C.
By: /S/ GREGORY D. HITCHAN
----------------------
Name: Gregory D. Hitchan
Title: Member and General Counsel
----------------------------------- -----------------------------------
CUSIP NO. 69357C107 PAGE 10 OF 10 PAGES
----------------------------------- -----------------------------------
EXHIBIT INDEX
1. Joint Filing Agreement dated November 30, 2005.
2. 2005 Amended and Restated Standstill Agreement, dated November 14, 2005,
among the Reporting Persons and the Company.
3. Confidentiality Agreement dated November 25, 2005, among the Reporting
Persons and the Company.
4. Commitment Letter, dated November 28, 2005 among the Reporting Persons and
the Company.