-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UzLoVmMFUD9yOnGsWo2n58QjigIqTzhVAvGiwqIuDfixwXFnk8EqLtXmeBU+SKl0 bmhLA0Ydx58mlpSXN+5FHg== 0001144204-07-031946.txt : 20070614 0001144204-07-031946.hdr.sgml : 20070614 20070614170450 ACCESSION NUMBER: 0001144204-07-031946 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20070614 DATE AS OF CHANGE: 20070614 GROUP MEMBERS: BRUCE GALLOWAY GROUP MEMBERS: GALLOWAY CAPITAL MANAGEMENT LLC GROUP MEMBERS: GARY L. HERMAN SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: FIBERNET TELECOM GROUP INC\ CENTRAL INDEX KEY: 0001001868 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 133859938 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-56267 FILM NUMBER: 07920580 BUSINESS ADDRESS: STREET 1: 570 LEXINGTON AVENUE STREET 2: 3RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2124056200 MAIL ADDRESS: STREET 1: 570 LEXINGTON AVENUE STREET 2: 3RD FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: DESERT NATIVE DESIGNS INC DATE OF NAME CHANGE: 19960517 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: STRATEGIC TURNAROUND EQUITY PARTNERS LP CAYMAN CENTRAL INDEX KEY: 0001372509 IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: PO BOX 2150 GT 4TH FLOOR STREET 2: 1 CAYMAN FINANCIAL CENTER CITY: GRAND CAYMAN STATE: E9 ZIP: 00000 BUSINESS PHONE: 212 247 0581 MAIL ADDRESS: STREET 1: PO BOX 2150 GT 4TH FLOOR STREET 2: 1 CAYMAN FINANCIAL CENTER CITY: GRAND CAYMAN STATE: E9 ZIP: 00000 SC 13D 1 v078464_sc13d.txt 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. ______) (1) FiberNet Telecom Group, Inc. ---------------------------- (Name of Issuer) Common Stock, $0.001 par value per share ---------------------------------------- (Title of Class of Securities) 315653402 --------- (CUSIP Number) Bruce Galloway and Gary Herman c/o Strategic Turnaround Equity Partners, L.P. (Cayman) 720 Fifth Avenue, 10th Floor New York, New York 10019 (212) 247-1339 -------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) June 12 , 2007 -------------- (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(c), 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(b) for other parties to whom copies are to be sent. - ---------- (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 the disclosures provided in a prior cover page. The information required in 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). (Continued on following pages) - ------------------- ------------------- CUSIP No. 315653402 13D - ------------------- ------------------- - -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Strategic Turnaround Equity Partners, L.P.(Cayman) 98-0498777 - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER 0 SHARES -------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER 416,249 OWNED BY -------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER 0 REPORTING -------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER 416,249 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 416,249 (1) - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 5.66% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- (1) On the basis of 7,341,389 shares of Common Stock reported by the Company to be issued and outstanding as of May 15, 2007 in the Company's latest Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on May 15, 2007. *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------- ------------------- CUSIP No. 315653402 13D - ------------------- ------------------- - -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Galloway Capital Management LLC 90-0000838 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS * N/A - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER 0 SHARES -------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER 416,249 OWNED BY -------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER 0 REPORTING -------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER 416,249 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 416,249 (1) - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 5.66% (1) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- (1) On the basis of 7,341,389 shares of Common Stock reported by the Company to be issued and outstanding as of May 15, 2007 in the Company's latest Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on May 15, 2007. *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------- ------------------- CUSIP No. 315653402 13D - ------------------- ------------------- - -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Gary L. Herman N/A - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS * PF - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2 (e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER 6,000 (1) SHARES -------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER 416,249 OWNED BY -------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER 6,000 (1) REPORTING -------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER 416,249 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 422,249 (1) - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 5.75% (2) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- (1) On the basis of 7,341,389 shares of Common Stock reported by the Company to be issued and outstanding as of May 15, 2007 in the Company's latest Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on May 15, 2007. *SEE INSTRUCTIONS BEFORE FILLING OUT! - ------------------- ------------------- CUSIP No. 315653402 13D - ------------------- ------------------- - -------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Bruce Galloway N/A - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS * PF - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2 (e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER 133,609 (1) SHARES -------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER 416,249 OWNED BY -------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER 133,609 (1) REPORTING -------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER 416,249 - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 549,858 (1) - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 7.48% (2) - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- (1) This includes 27,982 shares of common stock held by Mr. Galloway, 2,400 shares of common stock held by Mr. Galloway through the Bruce Galloway, IRA, 1,600 shares of common stock owned by Mr. Galloway's son for which Mr. Galloway has the power to vote and dispose, 8,800 by RexonGalloway Capital Growth, LLC for which Mr. Galloway retains full investment and voting discretion, and 92,827 shares of common stock held by Jacombs Investments, Inc. for which Mr. Galloway retains full investment and voting discretion. (2) On the basis of 7,341,389 shares of Common Stock reported by the Company to be issued and outstanding as of May 15, 2007 in the Company's latest Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on May 15, 2007. *SEE INSTRUCTIONS BEFORE FILLING OUT! Item 1. Security and Issuer. The class of equity securities to which this statement relates is the common stock, no par value, (the "Common Stock") of FiberNet Telecom Group, Inc., a Delaware corporation, (the "Company"). The principal executive offices of the Company are located at 570 Lexington Avenue, New York, NY 10022. Item 2. Identity and Background. This statement is being filed jointly by Strategic Turnaround Equity Partners, L.P. (Cayman), Galloway Capital Management LLC, Bruce Galloway and Gary L. Herman (collectively, the "Reporting Persons"). Strategic Turnaround Equity Partners, L.P. (Cayman), is a Delaware limited liability partnership and is a fund focused on investing primarily in undervalued public equities. Galloway Capital Management LLC is a Delaware limited liability company principally engaged in serving as the general partner of Strategic Turnaround Equity Partners, L.P. (Cayman). Gary L. Herman and Bruce Galloway are citizens of the United States, managing members of Galloway Capital Management LLC and Mr. Galloway is a holder of the majority of the membership interests in Galloway Capital Management LLC, and is a holder of the majority of the partnership interests in Strategic Turnaround Equity Partners, L.P. (Cayman) The name and positions of the executive officers and directors of each of the Reporting Persons are set forth below. Other than as listed in Item 5 of this Report, each executive officer and director listed below disclaims beneficial ownership of the shares of Common Stock beneficially owned by the Reporting Persons. Strategic Turnaround Equity Partners, L.P. (Cayman) Cayman Islands limited partnership General Partner - Galloway Capital Management LLC Galloway Capital Management LLC Delaware limited liability company Managing Member - Gary L. Herman Managing Member - Bruce Galloway Bruce Galloway Citizenship - United States Managing Member - Galloway Capital Management LLC Managing Member - Strategic Turnaround Equity Partners, L.P. (Cayman) Gary L. Herman Citizenship - United States Managing Member - Galloway Capital Management LLC Managing Member - Strategic Turnaround Equity Partners, L.P. (Cayman) The address of the principal business office of Strategic Turnaround Equity Partners, L.P. (Cayman), Galloway Capital Management LLC, Bruce Galloway and Gary Herman is c/o Strategic Turnaround Equity Partners, L.P. (Cayman), 720 Fifth Avenue, 10th Floor, New York, New York 10019. During the last five years, neither the Reporting Persons nor any executive officer or director of the Reporting Persons have (i) been convicted in any criminal proceeding or (ii) been a party to any civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which he was subject to any judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. Item 3. Source and Amount of Funds or Other Consideration. The shares of Common Stock owned directly and indirectly by the Reporting Persons were purchased with working capital of Strategic Turnaround Equity Partners, L.P (Cayman) and the personal investment capital of Mr. Galloway and his affiliates and Mr. Herman. Item 4. Purpose of Transaction. All of the shares of Common Stock reported herein were acquired for investment purposes. On each of the following dates and at the following prices per share, Strategic Turnaround Equity Partners, L.P. (Cayman) made purchases and sells of Common Stock on the open market with its working capital: - ---------------------------------------------------------------------- Date Number of Shares Purchased Price Per Share - ---------------------------------------------------------------------- 5/1/2007 3500 8.8743 - ---------------------------------------------------------------------- 5/7/2007 7500 8.6484 - ---------------------------------------------------------------------- 5/9/2007 7500 8.7335 - ---------------------------------------------------------------------- 5/11/2007 6500 7.6808 - ---------------------------------------------------------------------- 5/17/2007 4000 7.29 - ---------------------------------------------------------------------- 5/22/2007 5500 7.7291 - ---------------------------------------------------------------------- 5/23/2007 5200 7.8877 - ---------------------------------------------------------------------- 5/24/2007 7100 7.5262 - ---------------------------------------------------------------------- 6/5/2007 1800 7.82 - ---------------------------------------------------------------------- 6/6/2007 5400 7.868 - ---------------------------------------------------------------------- 6/8/2007 6500 7.9326 - ---------------------------------------------------------------------- 6/12/2007 10000 7.6801 - ---------------------------------------------------------------------- On each of the following dates and at the following prices per share, Bruce Galloway and his affiliates made purchases and sells of Common Stock on the open market with his personal funds:
- ---------------------------------------------------------------------------------------------- Date Number of Shares Purchased Number of Shares Sold Price Per Share - ---------------------------------------------------------------------------------------------- 4/17/2007 1521 8.9796976 - ---------------------------------------------------------------------------------------------- 4/20/2007 200 9.47885 - ---------------------------------------------------------------------------------------------- 4/23/2007 6500 9.2121585 - ---------------------------------------------------------------------------------------------- 4/24/2007 3000 9.218 - ---------------------------------------------------------------------------------------------- 4/25/2007 2000 8.9687 - ---------------------------------------------------------------------------------------------- 4/26/2007 1000 9.137 - ---------------------------------------------------------------------------------------------- 5/10/2007 1000 8.07 - ---------------------------------------------------------------------------------------------- 5/10/2007 9000 8.48747 - ---------------------------------------------------------------------------------------------- 5/15/2007 6000 7.2256 - ---------------------------------------------------------------------------------------------- 5/30/2007 6000 7.5954 - ---------------------------------------------------------------------------------------------- 6/7/2007 3482 7.8736014 - ---------------------------------------------------------------------------------------------- 6/7/2007 6600 7.8736 - ---------------------------------------------------------------------------------------------- 6/11/2007 4000 7.9682 - ---------------------------------------------------------------------------------------------- 6/12/2007 3600 8.103175 - ----------------------------------------------------------------------------------------------
On the following date and at the following price per share, Gary Herman made a purchase of Common Stock on the open market with his personal funds: - ---------------------------------------------------------------------- Date Number of Shares Acquired Price Per Share - ---------------------------------------------------------------------- 5/30/07 4000 7.5954 - ---------------------------------------------------------------------- The Reporting Persons purchased the Shares based on the Reporting Persons' belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase of additional Shares desirable, the Reporting Persons may endeavor to increase their position in the Issuer through, among other things, the purchase 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 above. The Reporting Persons intend to review their investment in the Issuer on a continuing basis and engage in discussions with management and the Board of Directors of the Issuer concerning the business, operations and future plans of the Issuer. Depending on various factors including, without limitation, the Issuer's financial position and investment strategy, 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 its investment in the Issuer as it deems appropriate including, without limitation, seeking Board representation, 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 its Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares or changing its intention with respect to any and all matters referred to in Item 4. On June 14, 2007, the Reporting Persons sent a letter to the Board of Directors asking the management of the Issuer to explore strategic alternatives to increase shareholder value. A copy of the letter is attached as Exhibit 1. Item 5. Interest in Securities of the Issuer. (a) and (b) As of the date hereof, Strategic Turnaround Equity Partners, L.P. (Cayman), Galloway Capital Management LLC (as the general partner of Strategic Turnaround Equity Partners, L.P. (Cayman)), Bruce Galloway and Gary L. Herman (as a Managing Members of Galloway Capital Management LLC) are deemed to beneficially own an aggregate of 416,249 shares of Common Stock, representing approximately 5.66% of the number of shares of Common Stock stated to be outstanding by the Company in its Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on May 15, 2007. Strategic Turnaround Equity Partners, L.P. (Cayman) is deemed to be the direct beneficial owner of 416,249 shares of Common Stock. Galloway Capital Management LLC is deemed to be the indirect beneficial owner of 416,249 shares of Common Stock. Bruce Galloway and Gary L. Herman are deemed to be the indirect beneficial owners of 416,249 shares of Common Stock. Each of Galloway Capital Management LLC, Bruce Galloway and Gary L. Herman disclaim beneficial ownership of the shares of Common Stock directly beneficially owned by Strategic Turnaround Equity Partners, L.P. (Cayman) (except for (i) the indirect interest of Galloway Capital Management LLC by virtue of being the general partner of Strategic Turnaround Equity Partners, L.P. (Cayman), (ii) the indirect interests of Bruce Galloway and Gary L. Herman by virtue of being members of Galloway Capital Management LLC, and (iii) the indirect interests of Bruce Galloway and Gary L. Herman by virtue of being limited partners of Strategic Turnaround Equity Partners, L.P. (Cayman). Galloway Capital Management LLC, Gary L. Herman and Bruce Galloway have shared power to direct the vote and shared power to direct the disposition of these shares of Common Stock. Of the total 27,982 shares of common stock directly held by Mr. Galloway, 2,400 are held by Mr. Galloway through the Bruce Galloway, IRA, 1,600 shares of common stock are owned by Mr. Galloway's son for which Mr. Galloway has the power to vote and dispose, and 8,800 shares of common stock are held by RexonGalloway Capital Growth, an investment company in which Mr. Galloway is a member ("RexonGalloway") and for which Mr. Galloway retains full investment and voting discretion, and 92,827 shares of common stock held by Jacombs Investments, Inc. for which Mr. Galloway retains full investment and voting discretion. Gary L. Herman directly beneficially owns 6,000 shares of common stock. (c) Other than as set forth in this Report, the Reporting Persons and the executive officers and directors listed in Item 2 have not effected any transactions in the shares of the Company's equity securities within the past 60 days. (d) Not applicable. (e) Not applicable. Item 6. Contracts, Arrangements, Understandings or Relationships With the Issuer. Except as described herein, there are no contracts, arrangements, understandings or relationships (legal or otherwise) between the Reporting Persons named in Item 2 hereof and any person with respect to any securities of the Company, including but not limited to transfer or voting of any other securities, finder's fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, divisions of profits or loss, or the giving or withholding of proxies. Item 7. Material to be Filed as Exhibits. See attached letter dated June 14, 2007 and incorporated as Exhibit A SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Strategic Turnaround Equity Partners, L.P. (Cayman) June 14, 2007 By: /s/ Gary Herman --------------- Name: Gary Herman Title: Managing Member of Galloway Capital Management LLC, the General Partner of Strategic Turnaround Equity Partners, L.P. (Cayman) Galloway Capital Management, LLC June 14, 2007 By: /s/ Bruce Galloway ------------------ Name: Bruce Galloway Title: Managing Member Gary L. Herman June 14, 2007 /s/ Gary L. Herman ------------------ Bruce Galloway June 14, 2007 /s/ Bruce Galloway ------------------ The original statement shall be signed by each person on whose behalf the statement is filed or his authorized representative. If the statement is signed on behalf of a person by his authorized representative (other than an executive officer or general partner of the filing person), evidence of the representative's authority to sign on behalf of such person shall be filed with the statement, provided, however, that a power of attorney for this purpose which is already on file with the Commission may be incorporated by reference. The name and any title of each person who signs the statement shall be typed or printed beneath his signature. Attention. Intentional misstatements or omissions of fact constitute Federal criminal violations (See 18 U.S.C. 1001). EX-99.A 2 v078464_ex99-a.txt Strategic Turnaround Equity Partners, LP (Cayman) c/o Galloway Capital Management, LLC 720 Fifth Avenue, 10th Floor New York, NY 10019 June 14, 2007 Michael Liss, Chairman FiberNet Telecom Group, Inc. 570 Lexington Avenue New York, NY 10022 Attention: Board of Directors Gentlemen: As you may be aware, Strategic Turnaround Equity Partners, LP (Cayman) and its affiliates ("STEP") are significant shareholders of FiberNet Telecom Group, Inc. ("FiberNet" or the "Company"), and we have historically been, and currently are, supporters of FiberNet and its management team. While we believe that management is currently doing a good job of running the business, and has successfully refocusing the business, we believe that management should direct their attention to growing the business and operations of FiberNet and increasing shareholder value. Our research and internal valuation analysis indicates that FiberNet is trading at a significant discount to some of its larger cap peers. We encourage management to explore strategic alternatives in order to increase shareholder value. In addition, as significant shareholders, we would like to see increased shareholder communication with regard to the business and strategic direction of FiberNet. Very truly yours, STRATEGIC TURNAROUND EQUITY PARTNERS, LP (Cayman) By: Galloway Capital Management, LLC By: ------------------------------------- Name: Bruce Galloway Title: Managing Member -----END PRIVACY-ENHANCED MESSAGE-----