-----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, DedvMAV1XTvlKFmcs37P5zYbxAy1GqSdQp/g8GIK//CVi/eVfGxDwvQYp6m9bJ9w JsA6vqMCBRONr4/LP01Mcg== 0000892917-04-000108.txt : 20040504 0000892917-04-000108.hdr.sgml : 20040504 20040503195054 ACCESSION NUMBER: 0000892917-04-000108 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20040504 GROUP MEMBERS: JOSHUA H. LANDES GROUP MEMBERS: NELSON OBUS GROUP MEMBERS: WYNNEFIELD CAPITAL MANAGEMENT, LLC GROUP MEMBERS: WYNNEFIELD CAPITAL, INC. GROUP MEMBERS: WYNNEFIELD CAPITAL, INC. PROFIT SHARING PLAN GROUP MEMBERS: WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. GROUP MEMBERS: WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I GROUP MEMBERS: WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: FIRST AVIATION SERVICES INC CENTRAL INDEX KEY: 0001025743 STANDARD INDUSTRIAL CLASSIFICATION: AIRCRAFT ENGINES & ENGINE PARTS [3724] IRS NUMBER: 061419064 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-51583 FILM NUMBER: 04775014 BUSINESS ADDRESS: STREET 1: 15 RIVERSIDE AVE CITY: WESTPORT STATE: CT ZIP: 06880-4214 BUSINESS PHONE: 2032913303 MAIL ADDRESS: STREET 1: 15 RIVERSIDE AVE CITY: WESTPORT STATE: CT ZIP: 06880-4214 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: WYNNEFIELD PARTNERS SMALL CAP VALUE LP CENTRAL INDEX KEY: 0000899083 IRS NUMBER: 133688497 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: ONE PENN PLAZA STREET 2: SUITE 4720 CITY: NEW YORK STATE: NY ZIP: 10119 BUSINESS PHONE: 2127600814 MAIL ADDRESS: STREET 1: ONE PENN PLAZA STREET 2: SUITE 4720 CITY: NEW YORK STATE: NY ZIP: 10119 SC 13D/A 1 wc13da5304.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 SCHEDULE 13D (Rule 13d-101) (Amendment No. 11) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) First Aviation Services, Inc. (Name of Issuer) Common Stock, Par Value $0.01 Per Share (Title of Class of Securities) 31865W108 (CUSIP Number of Class of Securities) Wynnefield Partners Small Cap Value, L.P. 450 Seventh Avenue, Suite 509 New York, New York 10123 Attention: Mr. Nelson Obus (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) Copy to: Erich W. Merrill, Jr. Miller Nash LLP 111 S.W. Fifth Avenue Suite 3400 Portland, Oregon 97204 (503) 224-5858 May 3, 2004 (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 if filing this Schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box [ ] (continued on following pages) (Page 1 of 17 Pages) - -------------------------------------------------------------------------------- CUSIP No. 31865W108 13D/A Page 2 of 17 Pages - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON: Wynnefield Partners Small Cap Value, L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only): 13-3688497 - -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3. SEC USE ONLY - -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS WC (See Item 3) - -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) - -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF -0- shares (See Item 5) SHARES ---------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,168,444 (See Item 5) EACH REPORTING ---------------------------------------------------- PERSON 9. SOLE DISPOSITIVE POWER WITH -0- shares (See Item 5) ---------------------------------------------------- 10. SHARED DISPOSITIVE POWER 2,168,444 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,168,444 shares (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) 29.7% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 3 of 17 Pages - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON: Wynnefield Small Cap Value Offshore Fund, Ltd. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only): (No I.R.S. Identification Number) - -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3. SEC USE ONLY - -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS WC (See Item 3) - -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2 (d) OR 2 (e) - -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF -0- shares (See Item 5) SHARES ---------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,168,444 (See Item 5) EACH REPORTING ---------------------------------------------------- PERSON 9. SOLE DISPOSITIVE POWER WITH -0- shares (See Item 5) ---------------------------------------------------- 10. SHARED DISPOSITIVE POWER 2,168,444 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,168,444 shares (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) 29.7% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 4 of 17 Pages - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON: Wynnefield Partners Small Cap Value, L.P. I I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only) 13-3953291 - -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3. SEC USE ONLY - -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS WC (See Item 3) - -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) - -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF -0- shares (See Item 5) SHARES ---------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,168,444 (See Item 5) EACH REPORTING ---------------------------------------------------- PERSON 9. SOLE DISPOSITIVE POWER WITH -0- shares (See Item 5) ---------------------------------------------------- 10. SHARED DISPOSITIVE POWER 2,168,444 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,168,444 shares (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) 29.7% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CUSIP No. 31865W108 13D/A Page 5 of 17 Pages - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON: Nelson Obus I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only): - -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3. SEC USE ONLY - -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS PF (See Item 3) - -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) - -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION United States of America - -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF 0 shares (See Item 5) SHARES ---------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,168,444 (See Item 5) EACH REPORTING ---------------------------------------------------- PERSON 9. SOLE DISPOSITIVE POWER WITH 0 shares (See Item 5) ---------------------------------------------------- 10. SHARED DISPOSITIVE POWER 2,168,444 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,168,444 shares (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) 29.7% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CUSIP No. 31865W108 13D/A Page 6 of 17 Pages - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON: Joshua H. Landes I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only): - -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3. SEC USE ONLY - -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS AF (See Item 3) - -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) - -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION United States of America - -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF -0- shares (See Item 5) SHARES ---------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,168,444 (See Item 5) EACH REPORTING ---------------------------------------------------- PERSON 9. SOLE DISPOSITIVE POWER WITH -0- shares (See Item 5) ---------------------------------------------------- 10. SHARED DISPOSITIVE POWER 2,168,444 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,168,444 shares (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) 29.7% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 7 of 17 Pages - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON Wynnefield Capital Management LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only): 13-4018186 - -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3. SEC USE ONLY - -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS AF (See Item 3) - -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) - -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION New York - -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF -0- shares (See Item 5) SHARES ---------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,168,444 (See Item 5) EACH REPORTING ---------------------------------------------------- PERSON 9. SOLE DISPOSITIVE POWER WITH -0- shares (See Item 5) ---------------------------------------------------- 10. SHARED DISPOSITIVE POWER 2,168,444 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,168,444 shares (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) 29.7% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON OO (Limited Liability Company) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 8 of 17 Pages - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON Wynnefield Capital, Inc. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only): 13-3688495 - -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3. SEC USE ONLY - -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS AF (See Item 3) - -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) - -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF -0- shares (See Item 5) SHARES ---------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,168,444 (See Item 5) EACH REPORTING ---------------------------------------------------- PERSON 9. SOLE DISPOSITIVE POWER WITH -0- shares (See Item 5) ---------------------------------------------------- 10. SHARED DISPOSITIVE POWER 2,168,444 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,168,444 shares (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) 29.7 % (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 9 of 17 Pages - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 1. NAME OF REPORTING PERSON Wynnefield Capital, Inc. Profit Sharing Plan I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (entities only): (No. I.R.S. Identification Number) - -------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X] (b) [ ] - -------------------------------------------------------------------------------- 3. SEC USE ONLY - -------------------------------------------------------------------------------- 4. SOURCE OF FUNDS WC (See Item 3) - -------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) - -------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION Not Applicable - -------------------------------------------------------------------------------- 7. SOLE VOTING POWER NUMBER OF -0- shares (See Item 5) SHARES ---------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,168,444 (See Item 5) EACH REPORTING ---------------------------------------------------- PERSON 9. SOLE DISPOSITIVE POWER WITH -0- shares (See Item 5) ---------------------------------------------------- 10. SHARED DISPOSITIVE POWER 2,168,444 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,168,444 shares (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) 29.7 % (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON EP - -------------------------------------------------------------------------------- Item 1. Security and Issuer. This Amendment No. 11 (this "Amendment") to Statement of Beneficial Ownership on Schedule 13D relates to the common stock, par value $0.01 per share (the "Common Stock"), of First Aviation Services, Inc., a Delaware corporation with its principal executive offices located at 15 Riverside Avenue, Westport, Connecticut 06880-4214 (the "Issuer"). This Amendment is being filed to include a letter from the reporting persons to the Issuer's board of directors (the "Board") explaining why the reporting persons filed preliminary proxy materials for Issuer's 2004 annual meeting of shareholders (the "2004 Annual Meeting"). The preliminary proxy materials relate to solicitation of votes (a) for election of an outside director to the Board and (b) for a shareholder proposal to implement cumulative voting in future director elections. Item 2. Identity and Background. (a), (b), (c) and (f). This Amendment is being filed by Wynnefield Partners Small Cap Value, L.P. (the "Partnership"), Wynnefield Partners Small Cap Value, L.P. I (the "Partnership-I"), Wynnefield Small Cap Value Offshore Fund, Ltd. (the "Fund"), Nelson Obus ("Mr. Obus"), Joshua H. Landes ("Mr. Landes"), Wynnefield Capital Management, LLC ("WCM"), Wynnefield Capital, Inc. ("WCI"), and the Wynnefield Capital, Inc. Profit Sharing Plan (the "Plan", and collectively with the Partnership, Partnership-I, the Fund, Mr. Obus, Mr. Landes, WCM, and WCI, the "Wynnefield Group"). Each of the listed entities is separate and distinct with different beneficial owners (whether designated as limited partners or stockholders). Mr. Obus and Mr. Landes are individuals. WCM, a New York limited liability company, is the general partner of the Partnership and Partnership-I, private investment companies organized as limited partnerships under the laws of the State of Delaware. Mr. Obus and Mr. Landes are the managing members of WCM and the principal executive officers of WCI, the investment manager of the Fund, a private investment company organized under the laws of the Cayman Islands. Mr. Obus and Mr. Landes are citizens of the United States of America. The Plan is an employee profit-sharing plan of WCI. Mr. Obus and Mr. Landes share the power to vote and dispose of the Plan's investments in securities. The business address of Mr. Obus, Mr. Landes, and each of the entities in the Wynnefield Group is 450 Seventh Avenue, Suite 509, New York, New York 10123. (d) and (e). During the last five years, neither Mr. Obus, Mr. Landes, nor any of the entities comprising the Wynnefield Group has been (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors), or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a 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 source and amount of funds expended by members of the Wynnefield Group to acquire the Common Stock held directly by them was previously reported in the original Schedule 13D and in subsequent amendments to the 13D. (Page 10 of 17 Pages) Since April 16, 2004, the date of filing of Amendment No. 10 to the Schedule 13D (the "Schedule 13D, Amendment No. 10") with the Securities and Exchange Commission (the "Commission"), no member of the Wynnefield Group has purchased any shares of Common Stock. Item 4. Purposes of Transaction. On May 3, 2004, the Wynnefield Group sent a letter to the Issuer's Board in which the Wynnefield Group explained its reasons for filing preliminary proxy materials in connection with the 2004 Annual Meeting. The proxy materials relate to the Wynnefield Group's solicitation of votes (a) for election of its nominee, Nelson Obus, to the Board in opposition to management's candidates and (b) for a shareholder proposal to implement cumulative voting in future director elections. In its letter to the Board, the Wynnefield Group discusses its disappointment that the Issuer's nominating committee did not agree to voluntarily nominate Mr. Obus for election to the Board. The letter also highlights corporate governance issues that the Wynnefield Group believes are important for protection of minority shareholder rights in management-controlled companies. The letter is attached as Exhibit 99 to this Amendment and is incorporated into this response to Item 4 in its entirety. Each member of the Wynnefield Group originally acquired the shares of Common Stock it owns for its own account, and for investment purposes, with no intention of changing or influencing control of the Issuer or as a participant in any transaction having that purpose or effect. However, the Wynnefield Group has from time to time recommended to the Issuer's management various strategies for increasing shareholder value, including pursuing sale of the company or a going-private transaction, and will continue to make such recommendations in the future. The Wynnefield Group previously nominated Mr. Obus for election to the Board at the Issuer's 2003 annual meeting of shareholders and solicited proxies on his behalf. The Wynnefield Group expects to evaluate on an ongoing basis the Issuer's financial condition, business, operations and prospects, the market price for the shares of Common Stock, conditions in the securities markets generally, general economic conditions, conditions affecting the Issuer's operations, and other factors. The Wynnefield Group reserves the right to change its plans and intentions at any time as it deems appropriate. In particular, the Wynnefield Group may purchase shares of Common Stock, or may sell or otherwise dispose of all or a portion of the shares of Common Stock, in public and private transactions and/or may enter into negotiated derivative transactions to hedge the market risk of some or all positions in, or to obtain greater exposure to, the shares of the Common Stock. Any such transactions may be effected at any time or from time to time, subject to any applicable limitations imposed on the sale of shares of the Common Stock by the Securities Act of 1933, as amended, the Exchange Act and applicable state securities or "blue sky" laws. Except as set forth above, no member of the Wynnefield Group has any present plans or intentions that would result in or relate to any of the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D. Item 5. Interests in Securities of the Issuer. (a) - (c). As of May 3, 2004, the Wynnefield Group beneficially owned in the aggregate 2,168,444 shares of Common Stock, constituting approximately 29.7% of the outstanding shares of Common Stock (the percentage of shares owned being based upon 7,290,836 shares (Page 11 of 17 Pages) outstanding on April 12, 2004, as set forth in the Issuer's annual report on Form 10-K for the fiscal year ended January 31, 2004). Each member of the Wynnefield Group may be deemed to beneficially own the 2,168,444 shares of Common Stock referenced in the preceding sentence because they together constitute a "group" as that term is used in Section 13(d)(3) of the Exchange Act and thereby may each be deemed to share voting and dispositive power with respect to the Common Stock owned directly by any member. Partnership owns 744,258 shares of Common Stock directly. Partnership-I owns 910,834 shares of Common Stock directly. WCM has an indirect beneficial ownership interest in shares of Common Stock owned by Partnership and Partnership-I through its status as the sole general partner of Partnership and Partnership-I. Messrs. Landes and Obus are co-managing members of WCM. The Fund owns 405,852 shares of Common Stock directly. WCI has an indirect beneficial ownership interest in the shares of Common Stock owned by the Fund through its status as investment manager of the Fund. Messrs. Landes and Obus are the principal executive officers of WCI. The Plan owns 7,500 shares of Common Stock directly. Mr. Obus and Mr. Landes share the power to vote and dispose of those shares. Mr. Obus owns 100,000 shares of Common Stock directly. The filing of this Amendment and any future amendment by the Wynnefield Group, and the inclusion of information herein and therein with respect to Messrs. Obus and Landes, shall not be considered an admission that any of such persons, for the purpose of Section 16(b) of the Exchange Act, are the beneficial owners of any shares in which such persons do not have a pecuniary interest. To the best knowledge of the Wynnefield Group, except as described in this Amendment, none of the Wynnefield Group, any person in control (ultimately or otherwise) of the Wynnefield Group, or any general partner, executive officer or director thereof, as applicable, beneficially owns any shares of Common Stock and there have been no transactions in shares of Common Stock effected since the filing of the Schedule 13D, Amendment No. 10, by the Wynnefield Group, any person in control of the Wynnefield Group (ultimately or otherwise), or any general partner, executive officer or director thereof, as applicable; provided, however, certain investment banking affiliates of the Wynnefield Group may beneficially own shares of Common Stock, including shares that may be held in discretionary or advisory accounts with the Wynnefield Group; and the Wynnefield Group, directly or in connection with such discretionary or advisory accounts, may acquire, hold, vote or dispose of Common Stock, including transactions that may have occurred since the filing of the Schedule 13D, Amendment No. 10. (d) No person, other than each member of the Wynnefield Group referred to as the direct beneficial owner of the shares of Common Stock set forth in this response to Item 5, has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, such shares of Common Stock. (e) Not applicable. (Page 12 of 17 Pages) Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. Each of the members of the Wynnefield Group is a party to a Joint Filing Agreement, dated as of April 15, 2004, pursuant to which the parties agreed to jointly file any and all amendments and supplements to Schedule 13D with the Commission. Except for the agreement described in the preceding paragraph and the determination by members of the Wynnefield Group to seek the election of Mr. Obus as a director of the Issuer and to support the shareholder proposal for cumulative voting, as described in Item 4 above, to the best knowledge of the Wynnefield Group, there are no contracts, arrangements, understandings or relationships (legal or otherwise) between the Wynnefield Group and any other 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 agreements, 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. Exhibit 99 Letter from the Wynnefield Group to the Issuer's Board, dated as of May 3, 2004. (Page 13 of 17 Pages) SIGNATURES After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information set forth in this Amendment is true, complete and correct. Dated: May 3, 2004 WYNNEFIELD CAPITAL, INC. WYNNEFIELD PARTNERS SMALL CAP PROFIT SHARING PLAN VALUE, L.P. By: /s/ Nelson Obus By: /s/ Nelson Obus --------------------------------- -------------------------------- Nelson Obus, Authorized Signatory Nelson Obus, Co-Managing Partner WYNNEFIELD CAPITAL WYNNEFIELD PARTNERS SMALL CAP MANAGEMENT, LLC VALUE, L.P. I By: /s/ Nelson Obus By: Wynnefield Capital Management, LLC --------------------------------- General Partner Nelson Obus, Co-Managing Member By: /s/ Nelson Obus ---------------------------------- Nelson Obus, Co-Managing Member WYNNEFIELD CAPITAL, INC WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD. By: /s/ Nelson Obus By: Wynnefield Capital, Inc. --------------------------------- By: /s/ Nelson Obus ---------------------------------- Nelson Obus, President /s/ Joshua H. Landes - -------------------------------------- Joshua H. Landes, Individually /s/ Nelson Obus - -------------------------------------- Nelson Obus, Individually (Page 14 of 17 Pages) EX-99 2 wc13da50304ex.txt 99.1 EXHIBIT 99.1 Wynnefield Capital, Inc. 450 7th Avenue, Suite 509 New York, NY 10123 May 3, 2004 Board of Directors First Aviation Services, Inc. 15 Riverside Avenue Westport, Connecticut 06880-4214 To the Board of Directors: We were disappointed to learn that the nominating committee of First Aviation Services, Inc. (FAvS) declined to nominate Nelson Obus for election to the FAvS Board of Directors. We are writing you to tell you why, in the interests of all FAvS shareholders, we have no choice remaining but to file a proxy statement in order to elect an outside director to the Company's Board and to enact cumulative voting of directors. There are important issues of corporate governance at stake here, notably including the protection of minority shareholder rights in management-controlled companies. FAvS is controlled by an investment banking firm specializing in aerospace (First Equity) that is itself owned entirely by the Company's Chairman and CEO. As the holder of approximately 51% of the Company's common stock, the investment firm First Equity has essentially elected all of the Company's directors and controls its management. We are long-time shareholders of FAvS, having first invested in the Company more than six years ago, shortly after its initial public offering. Since that time, the Company has failed to consistently generate profits or grow the business through the acquisition strategy stated in its prospectus. As you know, for the past several years, we have encouraged the Company and its Board to develop and execute a profitable business plan. To date, there is none. In fact, value is being lost and minority shareholders are being hurt. Today, the capital markets ascribe little or no value to the Company's business model. The Company's common stock trades near or below its liquidation value - or its net/net working capital per share [(current assets minus total liabilities) divided by outstanding shares]. The common stock has traded below book value for more than three years. FAvS has reported average annual losses from continuing operations of ($0.12) per share over the past four fiscal years, while the Company's competitor Aviall, Inc. remains on a continued growth path of higher profitability and share price. (Page 15 of 17) We have met with management and the Board over a period of years to offer proposals for realizing shareholder value, and have been rebuffed each time. In connection with last year's annual meeting of shareholders, we nominated Mr. Obus for election to the Board in an attempt to give some voice to outside shareholders. After the investment firm First Equity declined to vote for Mr. Obus last year and the Board's nominating committee declined to nominate him this year, we came to the conclusion that the governance at FAvS required that we file a proxy statement to address the following issues: FIRST EQUITY IS A BARE MAJORITY SHAREHOLDER THAT HAS IGNORED THE RIGHT OF MINORITY SHAREHOLDERS. According to the findings of the Conference Board's Commission on Public Trust and Private Enterprise in 2003, recent declines in investor confidence are often attributable to a significant weakening of the fundamental "compact" among shareowners, management and directors that corporations will be operated for the long-term benefit of shareholders. FAvS is a publicly-traded company. The fact that the investment firm First Equity holds a bare 51% majority of the Company's common stock does not entitle management to operate the Company like a privately-held company. The minority shareholders - who control 49% of the Company's equity - have rights, and management and the Board have responsibilities to all shareholders. However, for the past six years, the investment firm First Equity has elected all directors to the Board. While the Company has failed to develop and execute a consistently profitable business plan that creates value for long-term shareholders, outside shareholders have had no practical opportunity to elect a director of their choosing. All shareholders would be better served by the election of a director with a fresh outside perspective. That is why we have proposed that the Company adopt a system of cumulative voting for directors. Under cumulative voting, a shareholder can cast a number of votes equal to the number of shares held multiplied by the number of directors being elected. Under cumulative voting, 33.4% of the Company's common stock could elect a nominee in a year when two directors are up for election. INVESTMENT FIRM FIRST EQUITY APPEARS FOCUSED ON SELF-DEALING, NOT BUILDING VALUE FOR ALL SHAREHOLDERS. While the Company has failed to articulate a profitable business plan for FAvS, the investment firm First Equity continues to profit at the Company's expense. Over the last four fiscal years, the Company paid First Equity more than $1.4 million in advisory fees related to potential acquisitions; yet, only one small ($4.6 million) acquisition was completed during that time. Management insists on maintaining its executive headquarters at a First Equity property in Westport, Connecticut at an incremental cost that the Company estimates at up to $100,000 annually, despite the availability of sufficient space at the Company's Memphis facility, and the fact that substantially all other operations are consolidated at the Memphis facility. That is why we have nominated Nelson Obus as an outside director for the Company's Board. A position on the Board would allow Mr. Obus to help focus the Company and its management on the development and execution of a business plan capable of generating consistent profits. Moreover, all shareholders would benefit from Mr. Obus' experience as a director of publicly traded companies, his 20 years of experience as a professional value investor and his 11 years of experience managing his own business. (Page 16 of 17) WE ARE ACTING ON PRINCIPLE ON BEHALF OF ALL SHAREHOLDERS. This is a matter of principle about the rights of all minority shareholders. We recognize that the investment firm First Equity still owns 51% of the Company's common stock - and that even if we were to win the votes of every other minority shareholder, we would still fall short in this proxy contest. But this is too significant a principle to yield and, as a matter of principle, we will continue to work beyond this proxy contest until the Company fulfills its responsibilities to all shareholders. In the best interests of all shareholders, the Company should either take steps towards developing and executing a profitable business plan creating value for ALL shareholders or enter into a transaction to release value to ALL shareholders. Put more simply, First Equity should either respect the rights of minority shareholders who comprise nearly one-half of the Company's equity base, take the Company private at a fair value or enter into a transaction with a strategic partner committed to building shareholder value. We hope that you will support us in these efforts to realize value for all of FAvS shareholders. Sincerely, /s/ Nelson Obus - --------------------------------- Nelson Obus On Behalf of the Wynnefield Group Members of the Wynnefield Group are participants in the solicitation of proxies from shareholders of First Aviation Services, Inc. ("FAvS") for use at the annual meeting of FAvS shareholders to be held in June 2004. Information concerning the members of the Wynnefield Group and their beneficial ownership of FAvS common stock can be found in the preliminary proxy statement filed under cover of Schedule 14A by the Wynnefield Group with the Securities and Exchange Commission on April 27, 2004. Investors are advised to read the Wynnefield Group's definitive proxy statement when it becomes available, because it will contain important information. Investors may obtain a free copy of the preliminary proxy statement and, when it becomes available, definitive proxy statement and other documents filed by the Wynnefield Group with the SEC at the SEC's internet website at www.sec.gov. The preliminary proxy statement and, when available, definitive proxy statement and such other documents may also be obtained free of charge from the Wynnefield Group's proxy solicitor or from the Wynnefield Group by request to: Lawrence E. Dennedy or Nelson Obus Daniel M. Sullivan The Wynnefield Group MacKenzie Partners, Inc. 450 Seventh Avenue, Suite 509 105 Madison Avenue Phone: (212) 760-0134 New York, NY 10016 Phone: (800) 322-2885 (Page 17 of 17) -----END PRIVACY-ENHANCED MESSAGE-----