UNITED STATES
SECURITIES EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 5)*
STERLING CHEMICALS, INC.
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(Name of Issuer)
Common Stock, par value $.01 per share
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(Title of Class of Securities)
859166100
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(CUSIP Number)
Phillip M. Sevin
General Counsel
Resurgence Asset Management, L.L.C.
10 New King Street
White Plains, New York 10604
(914) 288-8600
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
March 2, 2006
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(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
statement because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. [ ]
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss.240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("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).
Continued on following pages
Page 1 of 10 Pages
Exhibit Index: Page 9
SCHEDULE 13D
CUSIP No.: 859166100 Page 2 of 10 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
RESURGENCE ASSET MANAGEMENT, L.L.C.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Source of Funds (See Instructions)
OO
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5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
[ ]
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6. Citizenship or Place of Organization
Delaware
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Number of 7. Sole Voting Power None
Shares -------------------------------------------------------------
Beneficially 8. Shared Voting Power 2,878,185 /1/
Owned by Each -------------------------------------------------------------
Reporting 9. Sole Dispositive Power None
Person With -------------------------------------------------------------
10. Shared Dispositive Power 2,878,185 /1/
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
2,878,185 /1/
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
[ ]
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13. Percent of Class Represented by Amount in Row (11)
59.1%
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14. Type of Reporting Person:
IA
------------------------
/1/ See Item 5 herein.
SCHEDULE 13D
CUSIP No.: 859166100 Page 3 of 10 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
RESURGENCE ASSET MANAGEMENT,INTERNATIONAL L.L.C.
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Source of Funds (See Instructions)
OO
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5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
[ ]
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6. Citizenship or Place of Organization
Delaware
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Number of 7. Sole Voting Power None
Shares -------------------------------------------------------------
Beneficially 8. Shared Voting Power 780,260 /1/
Owned by Each -------------------------------------------------------------
Reporting 9. Sole Dispositive Power None
Person With -------------------------------------------------------------
10. Shared Dispositive Power 780,260 /1/
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
780,260 /1/
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
[ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
23.1%
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14. Type of Reporting Person:
IA
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/1/ See Item 5 herein.
SCHEDULE 13D
CUSIP No.: 859166100 Page 4 of 10 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
RE/ENTERPRISE ASSET MANAGEMENT, L.L.C.
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
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3. SEC Use Only
--------------------------------------------------------------------------------
4. Source of Funds (See Instructions)
OO
--------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
[ ]
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6. Citizenship or Place of Organization
Delaware
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Number of 7. Sole Voting Power None
Shares -------------------------------------------------------------
Beneficially 8. Shared Voting Power 1,698,491 /1/
Owned by Each -------------------------------------------------------------
Reporting 9. Sole Dispositive Power None
Person With -------------------------------------------------------------
10. Shared Dispositive Power 1,698,491 /1/
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
1,698,491 /1/
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
[ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
42.2%
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14. Type of Reporting Person:
IA
------------------------
/1/ See Item 5 herein.
SCHEDULE 13D
CUSIP No.: 859166100 Page 5 of 10 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
MARTIN D. SASS
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Source of Funds (See Instructions)
OO
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5. Check if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e)
[ ]
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6. Citizenship or Place of Organization
United States of America
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Number of 7. Sole Voting Power None
Shares -------------------------------------------------------------
Beneficially 8. Shared Voting Power 5,356,936 /1/
Owned by Each -------------------------------------------------------------
Reporting 9. Sole Dispositive Power None
Person With -------------------------------------------------------------
10. Shared Dispositive Power 5,356,936 /1/
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11. Aggregate Amount Beneficially Owned by Each Reporting Person
5,356,936 /1/
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12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
[ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
80.9%
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14. Type of Reporting Person:
IA
------------------------
/1/ See Item 5 herein.
Page 6 of 10 Pages
This Amendment No. 5 to Schedule 13D relates to shares of
Common Stock, par value $.01 per share (the "Shares"), of Sterling Chemicals,
Inc. (the "Issuer"). This Amendment No. 5 supplementally amends the initial
statement on Schedule 13D, dated December 19, 2002, and all amendments thereto
(collectively, the "Initial Statement"), filed by the Reporting Persons (as
defined herein). This Amendment No. 5 is being filed by the Reporting Persons to
report that the number of Shares that the Reporting Persons may be deemed to
beneficially own has increased by more than one percent of the current amount of
outstanding Shares, as disclosed in the Issuer's quarterly report on Form 10-Q.
Capitalized terms used but not defined herein shall have the meanings ascribed
to them in the Initial Statement. The Initial Statement is supplementally
amended as follows.
Item 1 Security and Issuer
This Statement relates to the Shares. The address of the principal
executive office of the Issuer is 333 Clay Street, Suite 3600, Houston, Texas
77002-4109.
Item 2 Identity and Background
This Statement is filed on behalf of each of the following persons
(collectively, the "Reporting Persons"):
i) Resurgence Asset Management, L.L.C. ("RAM");
ii) Resurgence Asset Management, International L.L.C. ("RAMI");
iii) Re/Enterprise Asset Management, L.L.C. ("REAM"); and
iv) Mr. Martin D. Sass ("Mr. Sass").
In its capacity as investment advisor, RAM exercises voting and
investment power over the Shares held for the accounts of M.D. Sass Corporate
Resurgence Partners, L.P., M.D. Sass Corporate Resurgence Partners II, L.P., and
M.D. Sass Corporate Resurgence Partners III, L.P. ("Resurgence I, II and III,"
respectively), the Resurgence Asset Management, L.L.C. Employment Retirement
Plan (the "Plan") Accordingly, RAM may be deemed to share voting and investment
power with Resurgence I, II and III and the Plan. Mr. Sass serves as Chairman
and Chief Executive Officer of RAM.
In its capacity as investment advisor, RAMI exercises voting and
investment power over the Shares held for the account of M.D. Sass Corporate
Resurgence International, Ltd., for which RAMI serves as investment adviser.
Accordingly, RAMI may be deemed to share voting and investment power with M.D.
Sass Corporate Resurgence International, Ltd. Mr. Sass serves as Chairman and
Chief Executive Officer of RAMI.
In its capacity as investment advisor, REAM exercises voting and
investment power over the Shares held for the accounts of (a) two employee
pension plans (the "Pension Plans") and as an advisor to the M.D. Sass
Associates, Inc. Employee Retirement Plan (the "Sass Plan"), and (b) as general
partner and sole investment advisor of M.D. Sass Re/Enterprise Portfolio
Company, L.P. ("Enterprise") and M.D. Sass Re/Enterprise II, L.P. ("Enterprise
II"). Accordingly, REAM may be deemed to share voting and investment power with
each of the Pension Plans, the Sass Plan, Enterprise and Enterprise II. Mr.
Sass serves as Chairman and Chief Executive Officer of REAM.
Page 7 of 10 Pages
Item 5 Interest in Securities of the Issuer
(a) - (b) See Rows 7, 9, 11 and 13 of each cover page.
The precentage in Row 13 of each cover page are based on 2,828,474
Shares that were outstanding as of October 31, 2005, as reported in the Issuer's
most recently-filed quarterly report on Form 10-Q.
(i) The Shares that RAM may be deemed to beneficially own include
Shares that RAM has the current right to acquire upon conversion of shares of
preferred stock of the Issuer and upon exercise of warrants of the Issuer. As
of December 31, 2005, funds and accounts managed by RAM held: (A) 838,314
Shares; (B) 1,851,866 Shares issuable upon the conversion of preferred stock;
and (C) 188,005 Shares issuable upon the exercise of warrants.
(ii) The Shares that RAMI may be deemed to beneficially own include
Shares that RAMI has the current right to acquire upon conversion of shares of
preferred stock of the Issuer and upon exercise of warrants of the Issuer. As
of December 31, 2005, funds and accounts managed by RAMI held: (A) 228,261
Shares; (B) 501,123 Shares issuable upon the conversion of preferred stock; and
(C) 50,876 Shares issuable upon the exercise of warrants.
(iii) The Shares that REAM may be deemed to beneficially own include
Shares that REAM has the current right to acquire upon conversion of shares of
preferred stock of the Issuer and upon exercise of warrants of the Issuer. As
of December 31, 2005, funds and accounts managed by REAM held: (A) 497,620
Shares; (B) 1,090,207 Shares issuable upon the conversion of preferred stock;
and (C) 110,664 Shares issuable upon the exercise of warrants.
(iv) The Shares that Mr. Sass may be deemed to beneficially own include
Shares that Mr. Sass has the current right to acquire upon conversion of shares
of preferred stock of the Issuer and upon exercise of warrants of the Issuer. As
of December 31, 2005, funds and accounts managed by Mr. Sass held: (A) 1,564,195
Shares; (B) 3,443,196 Shares issuable upon the conversion of preferred stock;
and (C) 349,545 Shares issuable upon the exercise of warrants.
In addition, funds which have invested side-by-side with funds managed by
RAM and RAMI beneficially own 26,733 Shares, 58,876 Shares issuable upon the
conversion of preferred stock; and 5,976 Shares issuable upon the exercise of
warrants.
(c) There have been no transactions effected with respect to the
Shares since December 31, 2005 (60 days prior to the date hereof) by any of the
Reporting Persons.
(d) No person other than those named in Item 2 is known to have the
right to receive or the power to direct the receipt of dividends from, or the
proceeds from the sale of the Shares.
(e) Not applicable.
Item 7 Material to be filed as Exhibits.
The Exhibit Index is incorporated herein by reference.
Page 8 of 10 Pages
SIGNATURE
After reasonable inquiry and to the best of its knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Date: March 2, 2006 RESURGENCE ASSET MANAGEMENT, L.L.C.
By: /s/ Martin D. Sass
---------------------------------
Name: Martin D. Sass
Title: Chairman and Chief Executive Officer
Date: March 2, 2006 RESURGENCE ASSET MANAGEMENT,INTERNATIONAL L.L.C.
By: /s/ Martin D. Sass
---------------------------------
Name: Martin D. Sass
Title: Chairman and Chief Executive Officer
Date: March 2, 2006 RE/ENTERPRISE ASSET MANAGEMENT, L.L.C.
By: /s/ Martin D. Sass
---------------------------------
Name: Martin D. Sass
Title: Chairman and Chief Executive Officer
Date: March 2, 2006 MARTIN D. SASS
/s/ Martin D. Sass
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Page 9 of 10 Pages
EXHIBIT INDEX
Ex. Page No.
--- --------
A. Joint Filing Agreement, dated March 2, 2006 by and among
Resurgence Asset Management, L.L.C., Resurgence Asset Management,
International L.L.C., Re/Enterprise Asset Management, L.L.C.,
and Mr. Martin D. Sass.............................................. 10
Page 10 of 10 Pages
EXHIBIT A
JOINT FILING AGREEMENT
The undersigned hereby agree that the statement on Schedule 13D, Amendment
No. 5, with respect to the Common Stock of Sterling Chemicals, Inc. dated as of
March 2, 2006 is, and any amendments thereto (including amendments on Schedule
13G) signed by each of the undersigned shall be, filed on behalf of each of
us pursuant to and in accordance with the provisions of Rule 13d-1(k) under
the Securities Exchange Act of 1934, as amended.
Date: March 2, 2006 RESURGENCE ASSET MANAGEMENT, L.L.C.
By: /s/ Martin D. Sass
---------------------------------
Name: Martin D. Sass
Title: Chairman and Chief Executive Officer
Date: March 2, 2006 RESURGENCE ASSET MANAGEMENT,INTERNATIONAL L.L.C.
By: /s/ Martin D. Sass
---------------------------------
Name: Martin D. Sass
Title: Chairman and Chief Executive Officer
Date: March 2, 2006 RE/ENTERPRISE ASSET MANAGEMENT, L.L.C.
By: /s/ Martin D. Sass
---------------------------------
Name: Martin D. Sass
Title: Chairman and Chief Executive Officer
Date: March 2, 2006 MARTIN D. SASS
/s/ Martin D. Sass
----------------------------------------