-----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, GZB1LEAmHOnX5sTnNd88Bgon2VgruFUXeV+7qc5pStwWc9qC8Lm0lkihWbQxj3zp FT+rFBLGVIEW7DlXAg2BdQ== 0000930413-03-000977.txt : 20030328 0000930413-03-000977.hdr.sgml : 20030328 20030328170521 ACCESSION NUMBER: 0000930413-03-000977 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20030328 GROUP MEMBERS: ALLA FRENKEL GROUP MEMBERS: LEON FRENKEL GROUP MEMBERS: OTA LLC GROUP MEMBERS: PERISCOPE L.P. GROUP MEMBERS: TRIAGE ADVISORS, LLC GROUP MEMBERS: TRIAGE CAPITAL MANAGEMENT, L.P. GROUP MEMBERS: TRIAGE OFFSHORE FUND, LTD. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: NETWOLVES CORP CENTRAL INDEX KEY: 0001084103 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 112208052 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-60217 FILM NUMBER: 03626103 BUSINESS ADDRESS: STREET 1: 4002 EISENHOWER BOULEVARD STREET 2: STE 101 CITY: TAMPA STATE: FL ZIP: 33634 BUSINESS PHONE: 8132868644 MAIL ADDRESS: STREET 1: 4002 EISENHOWER BOULEVARD STREET 2: STE 101 CITY: TAMPA STATE: FL ZIP: 33634 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: TRIAGE MANAGEMENT LLC CENTRAL INDEX KEY: 0001225070 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 401 CITY AVE. STREET 2: SUITE 526 CITY: BALA CYNWYD STATE: PA ZIP: 19004 BUSINESS PHONE: 6016680404 MAIL ADDRESS: STREET 1: 401 CITY AVE. STREET 2: SUITE 526 CITY: BALA CYNWYD STATE: PA ZIP: 19004 SC 13D 1 c27591_sc13d.txt SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 NETWOLVES CORPORATION - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, par value $.0033 per share - -------------------------------------------------------------------------------- (Title of Class of Securities) 64120V102 - -------------------------------------------------------------------------------- (CUSIP Number) Leon Frenkel c/o TRIAGE Management LLC 401 City Avenue Suite 526 Bala Cynwyd, PA 19004 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) January 29, 2003 - -------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box. __ Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP NO. 64120V102 - -------------------------------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) TRIAGE Management LLC - -------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A) (B) - -------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS - -------------------------------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES -------------------------------------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 4,219,670 (1) OWNED BY -------------------------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 0 PERSON -------------------------------------------------------------------------------- WITH 10 SHARED DISPOSITIVE POWER 4,219,670 (1) - -------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,219,670(1) - -------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES |X| - -------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 25.43% - -------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - --------------------------------------------------------------------------------------------------------
Page 2 (1) This Schedule 13D filing includes 235,300 shares of the Issuer's Common Stock and 99,999 shares of the Issuer's Series A Convertible Preferred Stock, 46,874 shares of the Issuer's Series B Convertible Preferred Stock and 1,171,870 warrants which by reason of conversion or exercise rights result in the holdings reported herein. CUSIP NO. 64120V102 - -------------------------------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) TRIAGE Capital Management, L.P. - -------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) (B) - -------------------------------------------------------------------------------------------------------- 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 Delaware - -------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 1,148,435 SHARES --------------------------------------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALL OWNED BY 0 EACH --------------------------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER REPORTING PERSON 1,148,435 --------------------------------------------------------------------------------- WITH 10 SHARED DISPOSITIVE POWER 0 - -------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,148,435 - -------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* - -------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 8.34% - -------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - --------------------------------------------------------------------------------------------------------
Page 3 CUSIP NO. 64120V102 - -------------------------------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Triage Offshore Fund, Ltd. - -------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A) (B) - -------------------------------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 1,195,310 SHARES --------------------------------------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALL 0 OWNED BY --------------------------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH 1,195,310 REPORTING --------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 - -------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,195,310 - -------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES - -------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 8.66% - -------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - --------------------------------------------------------------------------------------------------------
Page 4 CUSIP NO. 64120V102 - -------------------------------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Triage Advisors, LLC - -------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (A) (B) - -------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS - -------------------------------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES --------------------------------------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALL 1,195,310 OWNED BY --------------------------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 0 --------------------------------------------------------------------------------- PERSON 10 SHARED DISPOSITIVE POWER WITH 1,195,310 - -------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,195,310 - -------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES - -------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 8.66% - -------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - --------------------------------------------------------------------------------------------------------
Page 5 CUSIP NO. 64120V102 - -------------------------------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) OTA LLC - -------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) (B) - -------------------------------------------------------------------------------------------------------- 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 Delaware - -------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 796,875 SHARES -------------------------------------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY -------------------------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH 0 REPORTING -------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON 0 WITH - -------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 796,875 - -------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* - -------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 5.94% - -------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON BD - --------------------------------------------------------------------------------------------------------
Page 6 CUSIP NO. 64120V102 - -------------------------------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Periscope L.P. - -------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) (B) - -------------------------------------------------------------------------------------------------------- 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 Delaware - -------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 505,150 SHARES -------------------------------------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY -------------------------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH 505,150 REPORTING -------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 - -------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 505,150 - -------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* - -------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 3.86% - -------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - --------------------------------------------------------------------------------------------------------
Page 7 CUSIP NO. 64120V102 - -------------------------------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Leon Frenkel - -------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) (B) - -------------------------------------------------------------------------------------------------------- 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 Citizen of the United States - -------------------------------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER SHARES 537,000 -------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY 3,682,670 -------------------------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER REPORTING 537,000 -------------------------------------------------------------------------------- PERSON 10 SHARED DISPOSITIVE POWER WITH 3,682,670 - -------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,219,670 - -------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* - -------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 25.43% - -------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - --------------------------------------------------------------------------------------------------------
Page 8 CUSIP NO. 64120V102 - -------------------------------------------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Alla Frenkel, as an individual and as Custodian for the Max Pasternack UGMA and as Custodian for the Zoe Pasternack UGMA - -------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (A) (B) - -------------------------------------------------------------------------------------------------------- 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 Citizen of the United States - -------------------------------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 36,900 SHARES -------------------------------------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY -------------------------------------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH 36,900 REPORTING -------------------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON 0 WITH - -------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 36,900 - -------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES* - -------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) .29% - -------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - --------------------------------------------------------------------------------------------------------
Page 9 ITEM 1. SECURITY AND ISSUER The title of the class of equity securities to which this Schedule 13D relates is the common stock (the "Common Stock"), par value $.0033 per share, of NetWolves Corporation, a New York corporation (the "Issuer"), and is being filed pursuant to Rule 13d-1 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The principal offices of the Issuer are located at One Corporate Drive, Suite 103, Bohemia, New York 11716. ITEM 2. IDENTITY AND BACKGROUND The persons filing this Schedule 13D are Triage Management LLC, a Delaware limited liability company ("TM"), Triage Capital Management, L.P., a Delaware limited partnership ("TCML"), Triage Offshore Fund, Ltd., a Cayman Islands limited corporation ("TOF"), TRIAGE Advisors, LLC, a Delaware limited liability company ("TA"), OTA LLC, a Delaware limited liability company ("OTA"), Periscope L.P., a Delaware limited partnership ("Periscope"), Leon Frenkel, a United States citizen ("Frenkel"), and Alla Frenkel, a United States citizen, as an individual and as Custodian for the Max Pasternack UGMA and as Custodian for the Zoe Pasternack UGMA ("Alla Frenkel," and together with TM, TCML, TOF, TA, OTA, Periscope, and Frenkel, the "Reporting Persons"). The Reporting Persons together maybe deemed a "group" in accordance with Section 13(d)(3) of the Act (the "Group"). Set forth below is certain information relating to the Reporting Persons and, with respect to such Reporting Persons other than Frenkel and Alla Frenkel, information relating to their respective members, directors and executive officers: TM (a) Name: Triage Management LLC. (b) Address: 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. (c) Principal Business: General Partner of TCML. (d), (e) Certain Proceedings: During the past five (5) years, TM has not been the subject of any type of proceeding specified in Items 2(d) and 2(e) of Schedule 13D. (f) Citizenship: Delaware. Frenkel is the managing member of TM. His business address is 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. During the past five (5) years, Frenkel has not been the subject of any type of legal proceeding specified in Items 2(d) and 2(e) of Schedule 13D. Page 10 TCML (a) Name: Triage Capital Management L.P. (b) Address: 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. (c) Principal Business: Investing in securities. (d), (e) Certain Proceedings: During the past five (5) years, TCML has not been the subject of any type of proceeding specified in Items 2(d) and 2(e) of Schedule 13D. (f) Citizenship: Delaware. TM is the general partner of TCML. TM's business address 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. During the past five (5) years, TM has not been the subject of any type of legal proceeding specified in Items 2(d) and 2(e) of Schedule 13D. TOF (a) Name: Triage Offshore Fund, Ltd. (b) Address: c/o I.F.A, 48 Par La Ville Road, Suite 464, Hamilton HW11, Bermuda. (c) Principal Business: Investing in securities. (d), (e) Certain Proceedings: During the past five (5) years, TOF has not been the subject of any type of proceeding specified in Items 2(d) and 2(e) of Schedule 13D. (f) Citizenship: Cayman Islands. TA is the investment manger for TOF. TA's business address is 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. During the past five (5) years, TA has not been the subject of any type of legal proceeding specified in Items 2(d) and 2(e) of Schedule 13D. TA (a) Name: Triage Advisors, LLC. (b) Address: 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. (c) Principal Business: Investment manager of TOF. (d), (e) Certain Proceedings: During the past five (5) years, TA has not been the subject of any type of proceeding specified in Items 2(d) and 2(e) of Schedule 13D. Page 11 (f) Citizenship: Delaware. Frenkel is the managing member of TA. Frenkel's business address is 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. During the past five (5) years, Frenkel has not been the subject of any type of legal proceeding specified in Items 2(d) and 2(e) of Schedule 13D. OTA (a) Name: OTA LLC. (b) Address: One Manhattanville Road, Purchase, New York, 10577. (c) Principal Business: Broker dealer. (d), (e) Certain Proceedings: During the past five (5) years, OTA has not been the subject of any type of proceeding specified in Items 2(d) and 2(e) of Schedule 13D. (f) Citizenship: Delaware. Ira Leventhal, a United States citizen, may be deemed to be the controlling person of OTA. His business address is One Manhattanville Road, Purchase, New York, 10577. During the past five (5) years, Ira Leventhal has not been the subject of any type of legal proceeding specified in Items 2(d) and 2(e) of Schedule 13D. His business occupation is managing director of OTA. PERISCOPE (a) Name: Periscope L.P. (b) Address: 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. (c) Principal Business: Investment management. (d), (e) Certain Proceedings: During the past five (5) years, Periscope has not been the subject of any type of proceeding specified in Items 2(d) and 2(e) of Schedule 13D. (f) Citizenship: Delaware. Frenkel is the general partner of Periscope. His business address is 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. During the past five (5) years, Frenkel has not been the subject of any type of legal proceeding specified in Items 2(d) and 2(e) of Schedule 13D. Frenkel's principal business occupation is investment manger. Page 12 FRENKEL (a) Name: Leon Frenkel. (b) Address: 401 City Avenue, Suite 526, Bala Cynwyd, Pennsylvania 19004. (c) Principal Occupation: Investment manager. (d), (e) Certain Proceedings: During the past five (5) years, Frenkel has not been the subject of any type of proceeding specified in Items 2(d) and 2(e) of Schedule 13D. (f) Citizenship: United States ALLA FRENKEL (a) Name: Alla Frenkel, as an individual and as Custodian for the Max Pasternack UGMA and as Custodian for the Zoe Pasternack UGMA. (b) Address: 1323 Valley Road, Villanova, Pennsylvania 19085. (c) Principal Occupation: Attorney. (d), (e) Certain Proceedings: During the past five (5) years, Alla Frenkel has not been the subject of any type of proceeding specified in Items 2(d) and 2(e) of Schedule 13D. (f) Citizenship: United States. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION TCML used working capital to purchase shares of the Issuer's Series A Convertible Preferred Stock ("Series A Preferred Stock"), Series B Convertible Preferred Stock ("Series B Preferred Stock, and together with the Series A Preferred Stock, the "Preferred Stock") and immediately exercisable warrants to purchase Common Stock ("Warrants"), as set forth on EXHIBIT B hereto (the "TCML Shares"). The aggregate purchase price for the TCML Shares was $665,000. TOF used working capital to purchase shares of Preferred Stock and Warrants, as set forth on EXHIBIT B hereto (the "TOF Shares"). The aggregate purchase price for the TOF Shares was $695,000. OTA used working capital to purchase shares of Preferred Stock and Warrants, as set forth on EXHIBIT B hereto (the "OTA Shares"). The aggregate purchase price for the OTA Shares was $440,000. Periscope used working capital to purchase shares of Series A Preferred Stock, Warrants and Common Stock, as set forth on EXHIBIT B hereto (the "Periscope Shares"). The aggregate purchase price for the Periscope Shares was $283,027.80. Frenkel used personal funds to purchase shares of Series A Preferred Stock, Warrants and Common Stock, as set forth on EXHIBIT B hereto (the "Frenkel Shares"). The aggregate purchase price for the Frenkel Shares was $357,476.84. Alla Frenkel used personal funds to purchase Common Stock, as set forth on EXHIBIT B hereto (the "Alla Frenkel Shares"). The aggregate purchase price for the Alla Frenkel Shares was $42,833.18. Page 13 ITEM 4. PURPOSE OF TRANSACTION The reporting persons acquired the Shares for investment purposes. The Reporting Persons may determine, based on market and general economic conditions, the business affairs and financial conditions of the Company, market price of the Company's securities and other factors deemed relevant by them, to sell some or all of such securities, or to purchase additional securities of the Company. Except as otherwise described in this Schedule 13D, the Reporting Persons currently have no plans or proposals which relate or would result in any transaction, event or action enumerated in paragraphs (a) through (j) of Item 4 of the form of the Schedule 13D. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER (a) As of the date hereof, TCML beneficially owns 23,333 shares of Series A Preferred Stock, 19,687 shares of Series B Preferred Stock and Warrants to purchase 317,185 shares of Common Stock. Based on the Issuer's adjustment of the conversion price of the Series A Preferred Stock and the number of Warrants which accompanied the issuance of the Series A Preferred Stock on January 29, 2003, TCML may be deemed to beneficially own 1,148,435 shares of Common Stock, constituting approximately 8.34% of the Issuer's Common Stock, pursuant to Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended and on the basis of the 12,607,199 outstanding shares of Common Stock as disclosed in the Issuers Quarterly Report on Form 10-Q for the period ended December 31, 2002. As of the date hereof, TOF beneficially owns 23,333 shares of Series A Preferred Stock, 21,562 shares of Series B Preferred Stock and Warrants to purchase 326,560 shares of Common Stock. Based on the Issuer's adjustment of the conversion price of the Series A Preferred Stock and the number of Warrants which accompanied the issuance of the Series A Preferred Stock on January 29, 2003, TOF may be deemed to beneficially own 1,195,310 shares of Common Stock, constituting approximately 8.66% of the Issuer's Common Stock, pursuant to Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended and on the basis of the 12,607,119 outstanding shares of Common Stock as disclosed in the Issuers Quarterly Report on Form 10-Q for the period ended December 31, 2002. As of the date hereof, OTA beneficially owns 23,333 shares of Series A Preferred Stock, 5,625 shares of Series B Preferred Stock and Warrants to purchase 246,875 shares of Common Stock. Based on the Issuer's adjustment of the conversion price of the Series A Preferred Stock and the number of Warrants which accompanied the issuance of the Series A Preferred Stock on January 29, 2003, OTA may be deemed to beneficially own 796,875 shares of Common Stock, constituting approximately 5.94% of the Issuer's Common Stock, pursuant to Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended and on the basis of the 12,607,199 outstanding shares of Common Stock as disclosed in the Issuers Quarterly Report on Form 10-Q for the period ended December 31, 2002. Page 14 As of the date hereof, Periscope beneficially owns 16,667 shares of Series A Preferred Stock, Warrants to purchase 156,250 shares of Common Stock and 36,400 shares of Common Stock. Based on the Issuer's adjustment of the conversion price of the Series A Preferred Stock and the number of Warrants which accompanied the issuance of the Series A Preferred Stock on January 29, 2003, Periscope may be deemed to beneficially own 505,150 shares of Common Stock, constituting approximately 3.86% of the Issuer's Common Stock, pursuant to Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended and on the basis of the 12,607,199 outstanding shares of Common Stock as disclosed in the Issuers Quarterly Report on Form 10-Q for the period ended December 31, 2002. As of the date hereof, Alla Frenkel may be deemed to beneficially own 36,900 shares of Common Stock, 10,000 of which Alla Frenkel owns directly by virtue of being the Custodian for the Max Pasternack UGMA, and 10,000 of which she owns directly by virtue of being Custodian for the Zoe Pasternack UGMA, constituting approximately .29% of the Issuer's Common Stock, pursuant to Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended and on the basis of the 12,607,199 outstanding shares of Common Stock as disclosed in the Issuers Quarterly Report on Form 10-Q for the period ended December 31, 2002. As of the date hereof, Frenkel, is the direct beneficial owner of 13,333 shares of Series A Preferred Stock, Warrants to purchase 125,000 shares of Common Stock and 162,000 shares of Common Stock. By reason of their position or relationship with TOF, TCML, OTA, Periscope and Alla Frenkel, each of Frenkel and TM may be deemed to be share beneficial ownership of the Issuer's shares owned by each such Reporting Person. By reason of its position with TOF, TA may be deemed to share beneficial ownership the Issuer's shares owned by TOF. In addition, the Reporting Persons may be deemed a Group, which in the aggregate may be deemed to beneficially own, by reason of conversion or exercise rights, a total of 4,219,670 shares of Common Stock, consisting of 25.43% of the Issuer's Common Stock. Each of the Reporting Persons disclaims membership in the Group and disclaims beneficial ownership of any shares other than those shares such Reporting Person reports having sole dispositive and voting power over. To the knowledge of TM, TCML, TOF, TA, OTA and Periscope, none of the directors, executive officers, controlling persons, partners or members, as the case may be, of TM, TCML, TOF, TA, OTA or Periscope (other than Frenkel) beneficially own any shares of Common Stock. (b) TCML has the power to direct the vote and disposition of all 1,148,435 shares of Common Stock it beneficially owns. TOF has the power to direct the vote and disposition of all 1,195,310 shares of Common Stock it beneficially owns. OTA has the power to direct the vote and disposition of all 796,875 shares of Common Stock it beneficially owns. Periscope has the power to direct the vote and disposition of all 505,150 shares of Common Stock it beneficially owns. Alla Frenkel has the power to direct the vote and disposition of all 36,900 shares of Common Stock she beneficially owns. Frenkel has the sole power to direct the vote and disposition of 537,000 shares of Common Stock he has direct beneficially ownership and by reason of his position or relationship with TOF, TCML, Periscope and Alla Frenkel, Frenkel may be deemed to be share beneficial ownership with TOF, TCML, Periscope and Alla Frenkel and Page 15 may be deemed to have the power to direct the vote and disposition of all 4,219,670 shares of Common Stock he has indirect beneficial ownership of. TM, by reason of its position and relationship with TOF, TCML, Periscope and Alla Frenkel, and Frenkel's position with TM, may be deemed to be share beneficial ownership with TOF, TCML, Alla Frenkel, Frenkel and Periscope and may be deemed to have the power to direct the vote and disposition of all 4,219,670 shares of Common Stock its has indirect beneficial ownership of. By virtue of its position with TOF, TA may be deemed to share beneficial ownership with TOF and may be deemed to have the power to direct the vote and disposition of the 1,195,310 shares of Common Stock it owns indirectly. Each of the Reporting Persons disclaims membership in the Group and disclaims beneficial ownership of any shares other than those shares of such Reporting Person reports having sole dispositive and voting power over. (c) The dates and amount of each acquisition of Shares are listed on EXHIBIT B hereto. Except as set forth on EXHIBIT B hereto, there have been no transactions in securities of the Issuer by any of the Reporting Persons since the date of the event which required the filing of the Schedule 13G for the Reporting Persons. (d) Not applicable. (e) Not applicable. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER Not applicable. Page 16 ITEM 7. MATERIAL TO BE FILED AS EXHIBITS The following document is filed as an Exhibit to this Schedule 13D, as amended by this statement: EXHIBIT A: Joint Filing Agreement, dated March 28, 2003. EXHIBIT B: As described in Item 5. Page 17 SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this Schedule 13D is true, complete and correct. Dated: March 28, 2003 TRIAGE Management LLC By: /s/ LEON FRENKEL ---------------------------------------- Name: Leon Frenkel Title: Managing Member Dated: March 28, 2003 TRIAGE Capital Management, L.P. By: /s/ LEON FRENKEL ---------------------------------------- Name: Leon Frenkel Title: Senior Managing Member Dated: March 28, 2003 TRIAGE Offshore Fund, Ltd. By: /s/ LEON FRENKEL ---------------------------------------- Name: Leon Frenkel Title: Senior Managing Director Dated: March 28, 2003 TRIAGE Advisors, LLC By: /s/ LEON FRENKEL ---------------------------------------- Name: Leon Frenkel Title: Managing Member Dated: March 28, 2003 OTA LLC By: /s/ RICHARD CAYNE ---------------------------------------- Name: Richard Cayne Title: Page 18 Dated: March 28, 2003 Periscope L.P. By: /s/ LEON FRENKEL ----------------------------------------- Name: Leon Frenkel Title: General Partner Dated: March 28, 2003 /s/ LEON FRENKEL -------------------------------------------- Leon Frenkel Dated: March 28, 2003 /s/ ALLA FRENKEL -------------------------------------------- Alla Frenkel, on behalf of herself and as Custodian for the Max Pasternack UGMA and as Custodian for the Zoe Pasternack UGMA Page 19 EX-99.A 3 c27591_ex99-a.txt Exhibit A JOINT FILING AGREEMENT In accordance with Rule 13d-1(f) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of each of them of a statement on Schedule 13D (including amendments thereto) with respect to the common stock, par value $.0033 per share, of NetWolves Corporation, and further agree that this Joint Filing Agreement be included as an Exhibit to such joint filings. In evidence thereof, the undersigned, being duly authorized, have executed this Joint Filing Agreement this 28th day of March, 2003. Dated: March 28, 2003 TRIAGE Management LLC By: /s/ LEON FRENKEL ----------------------------------------- Name: Leon Frenkel Title: Managing Member Dated: March 28, 2003 TRIAGE Capital Management, L.P. By: /s/ LEON FRENKEL ----------------------------------------- Name: Leon Frenkel Title: Senior Managing Member Dated: March 28, 2003 TRIAGE Advisors, LLC By: /s/ LEON FRENKEL ----------------------------------------- Name: Leon Frenkel Title: Managing Member Dated: March 28, 2003 TRIAGE Offshore Fund, Ltd. By: /s/ LEON FRENKEL ----------------------------------------- Name: Leon Frenkel Title: Senior Managing Director Page 1-A Dated: March 28, 2003 OTA LLC By: /s/ RICHARD CAYNE ----------------------------------------- Name: Richard Cayne Title: Dated: March 28, 2003 Periscope L.P. By: /s/ LEON FRENKEL ----------------------------------------- Name: Leon Frenkel Title: General Partner Dated: March 28, 2003 /s/ LEON FRENKEL -------------------------------------------- Leon Frenkel Dated: March 28, 2003 /s/ ALLA FRENKEL -------------------------------------------- Alla Frenkel, on behalf of herself and as Custodian for Max Pasternack UGMA and as Custodian for the Zoe Pasternack UGMA Page 2-A EX-99.B 4 c27591_ex99-b.txt EXHIBIT B SCHEDULE OF TRANSACTIONS BY TRIAGE CAPITAL MANAGEMENT, L.P.
AGGREGATE NUMBER OF WARRANTS TO PRICE PER DATE OF PURCHASE NUMBER OF SHARES OF PURCHASE SHARES OF SHARE AND FROM ISSUER PREFERRED STOCK PURCHASED COMMON STOCK PURCHASED WARRANT - ---------------------------------------------------------------------------------------------------------- 7/10/02 23,333(1) 218,750 $15.00 2/3/03 19,687(2) 98,435 $16.00
SCHEDULE OF TRANSACTIONS BY TRIAGE OFFSHORE FUND, LTD.
AGGREGATE NUMBER OF WARRANTS TO PRICE PER DATE OF PURCHASE NUMBER OF SHARES OF PURCHASE SHARES OF SHARE AND FROM ISSUER PREFERRED STOCK PURCHASED COMMON STOCK PURCHASED WARRANT - ---------------------------------------------------------------------------------------------------------- 7/10/02 23,333(1) 218,750 $15.00 2/3/03 21,562(2) 107,810 $16.00
SCHEDULE OF TRANSACTIONS BY OTA LLC
AGGREGATE NUMBER OF WARRANTS TO PRICE PER DATE OF PURCHASE NUMBER OF SHARES OF PURCHASE SHARES OF SHARE AND FROM ISSUER PREFERRED STOCK PURCHASED COMMON STOCK PURCHASED WARRANT - ---------------------------------------------------------------------------------------------------------- 7/10/02 23,333(1) 218,750 $15.00 2/3/03 5,625(2) 28,125 $16.00
(1) Shares of Series A Preferred Stock. (2) Shares of Series B Preferred Stock. SCHEDULE OF TRANSACTIONS BY LEON FRENKEL
NUMBER OF SHARES NUMBER OF WARRANTS AGGREGATE NUMBER OF SHARES OF OF SERIES TO PURCHASE SHARES PRICE PER DATE OF COMMON STOCK A PREFERRED STOCK OF COMMON SHARE AND PURCHASE PURCHASED ON NASDAQ PURCHASED STOCK PURCHASED WARRANT - -------------------------------------------------------------------------------------------------------- 7/10/02 13,333 125,000 $ 15.00 7/17/02 2,500(1) $ 1.60 8/8/02 2,500(1) $ 1.40 8/20/02 2,000(1) $ 1.40 8/23/02 7,300 $ 1.51 8/27/02 2,600 $ 1.68 8/30/02 3,000(1) $ 1.67 8/30/02 5,700 $ 1.67 9/5/02 4,000 $ 1.50 9/27/02 12,100(1) $ 1.18 9/27/02 6,000(1) $ 1.23 9/30/02 9,400 $ 1.10 10/7/02 1,000 $ 0.99 10/8/02 2,000(1) $ 0.99 10/18/02 25,000(1) $ 0.64 10/28/02 2,000(1) $ 0.62 11/1/02 5,000(1) $ 0.86 11/13/02 2,000(1) $ 0.83 11/25/02 20,000(1) $ 0.81 11/27/02 5,000(1) $ 0.77 12/12/02 36,900(1) $ 0.73 1/3/03 6,000 $ 1.05 - -------------------------------------------------------------------------------------------------------- TOTAL 162,000 13,333 125,000
(1) Purchase made for Frenkel IRA. Page 2-B SCHEDULE OF OPEN MARKET TRANSACTIONS BY ALLA FRENKEL
NUMBER OF SHARES OF COMMON STOCK PURCHASED ON DATE OF PURCHASE NASDAQ PRICE PER SHARE - --------------------------------------------------------------------------------------------- 8/27/02 5,900 $ 1.68 12/31/02 10,000(1) $ 1.02 12/31/02 10,000(2) $ 1.02 1/31/03 5,000(3) $ 1.04 2/4/03 6,000(3) $ 1.23 - --------------------------------------------------------------------------------------------- TOTAL 36,900
(1) Purchase made for Zoe Pasternack UGMA. (2) Purchase made for Max Pasternack UGMA. (3) Purchases made for Alla Frenkel IRA. Page 3-B SCHEDULE OF TRANSACTIONS BY PERISCOPE L.P.
NUMBER OF SHARES NUMBER OF SHARES OF OF SERIES A NUMBER OF WARRANTS TO AGGREGATE DATE OF COMMON STOCK PREFERRED STOCK PURCHASE SHARES OF PRICE PER SHARE PURCHASE PURCHASED ON NASDAQ PURCHASED COMMON STOCK PURCHASED AND WARRANT ------------------------------------------------------------------------------------------------------------------------- 7/10/02 16,667 156,250 $15.00 12/4/02 12,400 $1.0014 12/5/02 10,300 $0.9707 12/6/02 11,500 $0.8130 12/19/02 2,200 $0.8722 - ------------------------------------------------------------------------------------------------------------------------- TOTAL 36,400 16,667 156,250
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