-----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, GcRJsGNkyeZMcNMW4xxcA0RJWNDmmgcJP+GKh9nL3PKhTKuV4Jblyh81H+Ooo5Rj TQR34+ff99AhZ6tTr1tGyg== 0000892917-04-000301.txt : 20041122 0000892917-04-000301.hdr.sgml : 20041122 20041119192246 ACCESSION NUMBER: 0000892917-04-000301 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20041122 DATE AS OF CHANGE: 20041119 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 OFFSHORE FUND, LTD. GROUP MEMBERS: WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. GROUP MEMBERS: WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I 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: 041159074 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 wc13da111904.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 SCHEDULE 13D (Rule 13d-101) (Amendment No. 12) 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 November 19, 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 is 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 16 Pages) - -------------------------------------------------------------------------------- CUSIP No. 31865W108 13D/A Page 2 of 16 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 - -------------------------------------------------------------------------------- NUMBER OF 7. SOLE VOTING POWER SHARES -0- shares (See Item 5) ----------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,174,144 (See Item 5) ----------------------------------------------------- EACH REPORTING 9. SOLE DISPOSITIVE POWER PERSON -0- shares (See Item 5) ----------------------------------------------------- WITH 10. SHARED DISPOSITIVE POWER 2,174,144 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,174,144 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) 29.8% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- (Page 2 of 16 Pages) - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 3 of 16 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 - -------------------------------------------------------------------------------- NUMBER OF 7. SOLE VOTING POWER SHARES -0- shares (See Item 5) -------------------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,174,144 (See Item 5) -------------------------------------------------------------- EACH 9. SOLE DISPOSITIVE POWER REPORTING -0- shares (See Item 5) -------------------------------------------------------------- PERSON 10. SHARED DISPOSITIVE POWER WITH 2,174,144 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,174,144 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) 29.8% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- (Page 3 of 16 Pages) - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 4 of 16 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 - -------------------------------------------------------------------------------- NUMBER OF 7. SOLE VOTING POWER SHARES -0- shares (See Item 5) ------------------------------------------------------------ BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,174,144 (See Item 5) ------------------------------------------------------------ EACH 9. SOLE DISPOSITIVE POWER REPORTING -0- shares (See Item 5) ------------------------------------------------------------ PERSON 10. SHARED DISPOSITIVE POWER WITH 2,174,144 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,174,144 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) 29.8% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- (Page 4 of 16 Pages) - -------------------------------------------------------------------------------- CUSIP No. 31865W108 13D/A Page 5 of 16 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 - -------------------------------------------------------------------------------- NUMBER OF 7. SOLE VOTING POWER SHARES -0- shares (See Item 5) ----------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,174,144 (See Item 5) ----------------------------------------------------- EACH REPORTING 9. SOLE DISPOSITIVE POWER PERSON -0- shares (See Item 5) ----------------------------------------------------- WITH 10. SHARED DISPOSITIVE POWER 2,174,144 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,174,144 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) 29.8% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- (Page 5 of 16 Pages) - -------------------------------------------------------------------------------- CUSIP No. 31865W108 13D/A Page 6 of 16 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 - -------------------------------------------------------------------------------- NUMBER OF 7. SOLE VOTING POWER SHARES -0- shares (See Item 5) ----------------------------------------------------- BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,174,144 (See Item 5) ----------------------------------------------------- EACH REPORTING 9 SOLE DISPOSITIVE POWER PERSON -0- shares (See Item 5) ----------------------------------------------------- WITH 10. SHARED DISPOSITIVE POWER 2,174,144 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,174,144 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) 29.8% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- (Page 6 of 16 Pages) - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 7 of 16 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 - -------------------------------------------------------------------------------- NUMBER OF 7. SOLE VOTING POWER SHARES -0- shares (See Item 5) ------------------------------------------------------------ BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,174,144 (See Item 5) ------------------------------------------------------------ EACH 9. SOLE DISPOSITIVE POWER REPORTING -0- shares (See Item 5) ------------------------------------------------------------ PERSON 10. SHARED DISPOSITIVE POWER WITH 2,174,144 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,174,144 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) 29.8% (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON OO (Limited Liability Company) - -------------------------------------------------------------------------------- (Page 7 of 16 Pages) - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 8 of 16 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 - -------------------------------------------------------------------------------- NUMBER OF 7. SOLE VOTING POWER SHARES -0- shares (See Item 5) ------------------------------------------------------------ BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,174,144 (See Item 5) ------------------------------------------------------------ EACH 9. SOLE DISPOSITIVE POWER REPORTING -0- shares (See Item 5) ------------------------------------------------------------ PERSON 10. SHARED DISPOSITIVE POWER WITH 2,174,144 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,174,144 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) 29.8 % (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- (Page 8 of 16 Pages) - -------------------------------------------------------------------------------- CUSIP NO. 31865W108 13D/A Page 9 of 16 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 - -------------------------------------------------------------------------------- NUMBER OF 7. SOLE VOTING POWER SHARES -0- shares (See Item 5) ------------------------------------------------------------ BENEFICIALLY 8. SHARED VOTING POWER OWNED BY 2,174,144 (See Item 5) ------------------------------------------------------------ EACH 9. SOLE DISPOSITIVE POWER REPORTING -0- shares (See Item 5) ------------------------------------------------------------ PERSON 10. SHARED DISPOSITIVE POWER WITH 2,174,144 (See Item 5) - -------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,174,144 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) 29.8 % (See Item 5) - -------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON EP - -------------------------------------------------------------------------------- (Page 9 of 16 Pages) Item 1. Security and Issuer. This Amendment No. 12 (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") commenting on the Issuer's recent announcement that First Equity Development Inc. (a wholly owned subsidiary of the Issuer's majority shareholder) is terminating its agreement to provide the Issuer with investment and financial advisory services relating to potential acquisitions and other financial transactions. In the letter, the reporting person urged the Issuer to take advantage of this opportunity for fundamental change in the operation and governance of the Issuer by appointing Nelson Obus to the Board. Item 2. Identity and Background. (a), (b), (c) and (f). This Amendment is being filed by Wynnefield Partners Small Cap Value, L.P. ("Partnership"), Wynnefield Partners Small Cap Value, L.P. I ("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 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 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. (Page 10 of 16 Pages) 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. Since May 4, 2004, the date of filing of Amendment No. 11 to the Schedule 13D (the "Schedule 13D, Amendment No. 11") with the Securities and Exchange Commission (the "Commission"), Partnership purchased 5,700 shares of Common Stock for a total purchase price of $24,068. Those purchases were paid for from available working capital. No other member of the Wynnefield Group has purchased any shares of Common Stock since the filing of Schedule 13D, Amendment No. 11. Item 4. Purposes of Transaction. On November 19, 2004, the Wynnefield Group sent a letter to the Issuer's Board commenting on the Issuer's recent announcement that First Equity Development Inc. (a wholly owned subsidiary of the Issuer's majority shareholder) is terminating its agreement to provide the Issuer with investment and financial advisory services relating to potential acquisitions and other financial transactions. In the letter, the Wynnefield Group urged the Issuer to take advantage of this opportunity for fundamental change in the operation and governance of the Issuer by appointing Nelson Obus to the Board. 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 nominated Mr. Obus for election to the Board at the Issuer's 2003 and 2004 annual meetings of shareholders and solicited proxies on his behalf. The Wynnefield Group also submitted and solicited proxies on behalf of a shareholder proposal considered at the 2004 annual meeting of shareholders for cumulative voting in director elections. The Wynnefield Group continues to pursue Board representation and may recommend other corporate governance changes designed to improve representation of minority shareholders. 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. (Page 11 of 16 Pages) 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 November 19, 2004, the Wynnefield Group beneficially owned in the aggregate 2,174,144 shares of Common Stock, constituting approximately 29.8% of the outstanding shares of Common Stock (the percentage of shares owned being based upon 7,304,332 shares outstanding on September 1, 2004, as set forth in the Issuer's report on Form 10-Q for the quarter ended July 31, 2004). Each member of the Wynnefield Group may be deemed to beneficially own the 2,174,144 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 749,958 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. 11, 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. 11. (Page 12 of 16 Pages) (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. 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 board representation and pursue corporate governance changes, 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 November 18, 2004, and sent on November 19, 2004. (Page 13 of 16 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: November 19, 2004 WYNNEFIELD CAPITAL, INC. WYNNEFIELD PARTNERS SMALL CAP PROFIT SHARING PLAN VALUE, L.P. By: /s/ Nelson Obus By: Wynnefield Capital Management, LLC, ------------------------------ General Partner Nelson Obus, Authorized Signatory By: /s/ Nelson Obus ------------------------------- Nelson Obus, Co-Managing Member 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. ------------------------------ Nelson Obus, President By: /s/ Nelson Obus -------------------------------- Nelson Obus, President /s/ Joshua H. Landes - ---------------------------------- Joshua H. Landes, Individually /s/ Nelson Obus - ---------------------------------- Nelson Obus, Individually (Page 14 of 16 Pages) EX-99 2 wc13da111904ex.txt EXHIBIT 99 Wynnefield Capital, Inc. 450 7th Avenue, Suite 509 New York, NY 10123 November 18, 2004 Board of Directors First Aviation Services Inc. 15 Riverside Avenue Westport, Connecticut 06880-4214 To the Board of Directors: On November 12, 2004, the Company announced that it had "received notice" from First Equity Development, Inc. ("First Equity"), a wholly owned subsidiary of First Equity Group, Inc. which is wholly owned by Aaron Hollander, the Company's Chairman, and Michael Culver, the Company's CEO, that First Equity was letting its engagement agreement with the Company expire on January 31, 2005. While this is an encouraging development long sought by minority stockholders, we hope the decision to terminate this unproductive agreement with First Equity was not, as publicly stated, solely First Equity's decision, because of "a regular review of the direction with which (sic) First Equity desires to take the advisory practice." The independent members of the FAvS Board should have been the active originators of the idea to terminate. For years, we have highlighted the lack of benefit received by FAvS from this "consulting agreement" with its majority shareholder. In our proxy effort last spring, ISS agreed with our position given "the poor historical returns, a continuing conflict of interest due to related party transactions with the First Equity group and the market valuing of the Company near its liquidation value..." Unfortunately, for outside shareholders, FAvS financial performance continues to deteriorate. We are concerned that the termination of the agreement with First Equity should not be the prelude to compensation increases for the agreement's main beneficiaries, Messrs. Hollander and/or Culver. Furthermore, we assume that the Company will take advantage of this opportunity to move the administration and accounting functions previously undertaken in Westport, to the natural, cost-effective operating headquarters at API in Memphis, TN. If Mr. Culver is to remain as CEO, there is no basis for him to remain in Westport, or for the Company to absorb any expenses for commuting or lodging. (Page 15 of 16) Wynnefield Capital believes that the termination of this agreement creates the opportunity for fundamental change in the operations and governance of the Company. Wynnefield renews its request that FAvS appoint me as a director. As we have previously noted in our proxies, I have the industry and governance experience to help the Company develop a profitable, benchmarked business plan to deliver shareholder value. As you are aware, more than 77% of unaffiliated shares voted at the 2004 annual meeting expressed dissatisfaction with the current FAvS Board by either voting for me, or withholding support for management's slate. We look forward to your earliest response and would be willing to meet with the Nominating Committee of the Board. While termination of the engagement agreement is a positive step, the value of FAvS is diminishing on a quarterly basis. As a Board member, I can help change that. Very truly yours, /s/ Nelson Obus --------------- Nelson Obus (Page 16 of 16) -----END PRIVACY-ENHANCED MESSAGE-----