UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. 2)*
KINDRED HEALTHCARE, INC. (FORMERLY VENCOR, INC.)
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(Name of Issuer)
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Common Stock, par value $0.25 per share
(Title of Class of Securities)
494580 10 3
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(CUSIP Number)
Kenneth Maiman, Esq.
Appaloosa Management L.P.
26 Main Street, First Floor
Chatham, NJ 07928
(973) 701-7000
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communication)
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October 21, 2002
(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(b)(3) or (4), check the
following box |_|.
Note. Six copies of this statement, including all exhibits,
should be filed with the Commission. See Rule 13d-1(a) 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 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 (the "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).
SCHEDULE 13D
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CUSIP NO. 494580 10 3 PAGE 2 OF 7 PAGES
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Appaloosa Management L.P.
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2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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NUMBER OF SHARES 7 SOLE VOTING POWER
5,001,821
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING
5,001,821
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PERSON 10 SHARED DISPOSITIVE POWER
WITH
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
5,001,821
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.8%
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14 TYPE OF REPORTING PERSON
PN
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SCHEDULE 13D
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CUSIP NO. 494580 10 3 PAGE 3 OF 7 PAGES
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Appaloosa Partners Inc.
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2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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NUMBER OF SHARES 7 SOLE VOTING POWER
5,001,821
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
------ ----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
5,001,821
------ ----------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH
------------------- ------ ----------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
5,001,821
---------- -------- -----------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
---------- -------- -----------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.8%
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14 TYPE OF REPORTING PERSON
CO
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SCHEDULE 13D
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CUSIP NO. 494580 10 3 PAGE 4 OF 7 PAGES
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
David A. Tepper
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2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF SHARES 7 SOLE VOTING POWER
5,001,821
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
------ ----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
5,001,821
------ ----------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH
------------------- ------ ----------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
5,001,821
---------- -------- -----------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
---------- -------- -----------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
24.8%
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14 TYPE OF REPORTING PERSON
IN
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
This Amendment No. 2 to the statement on Schedule 13D filed on
behalf of Appaloosa Management, L.P., Appaloosa Partners Inc. and David A.
Tepper on April 26, 2001, as amended by Amendment No. 1 filed on November
15, 2001 (the "Schedule 13D"), relates to the common stock, par value $0.25
per share (the "Common Stock"), of Kindred Healthcare, Inc. (formerly
Vencor, Inc.), a Delaware corporation (the "Company"). Capitalized terms
used but not otherwise defined herein shall have the meanings ascribed to
such terms in the Schedule 13D. The Schedule 13D is hereby amended and
supplemented as follows:
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 is hereby amended to add the following:
On October 21, 2002, David Tepper advised the Company that he
does not presently intend to seek re-election to the Board of Directors of
the Company at the next annual meeting of the stockholders of the Company.
In addition, effective as of October 7, 2002, Mr. Bolin resigned as Vice
President of Appaloosa Partners Inc., the general partner of the Manager,
and entered into a consulting arrangement with the Manager.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 is hereby amended to reflect that, as of the date hereof:
The percentages set forth in this Item 5 are based on there being
17,682,817 shares of Common Stock outstanding as of July 31, 2002 as
disclosed by the Company in its Form 10-Q for the quarterly period ended
June 30, 2002 and are calculated in accordance with Rule 13d-3(d) of the
Securities Exchange Act of 1934, as amended.
(a) The Purchasers are the beneficial owners of 2,475,427 shares
of Common Stock. Additionally, (i) upon exercise of the New Warrants, the
Purchasers would beneficially own an additional 2,521,394 shares of Common
Stock and (ii) upon exercise of the vested portion of the non-qualified
stock options granted to each of Mr. Tepper and Mr. Bolin on the
Transaction Date pursuant to the Company's 2001 Stock Option Plan for
Non-Employee Directors, the Purchasers would beneficially own an additional
5,000 shares of Common Stock. Therefore, as of the date hereof, the
Reporting Persons' beneficial ownership constitutes 5,001,821 shares of
Common Stock or approximately 24.8% of the issued and outstanding Common
Stock.
(b) The Manager, API and Mr. Tepper may be deemed to have sole
voting and dispositive power with respect to 5,001,821 shares of Common
Stock.
(c) Since the last filing on Schedule 13D, the following
transactions have taken place:
On or about January 1, 2002 (the "January 2002 Transaction
Date"), pursuant to the Company's 2001 Stock Option Plan for Non-Employee
Directors, Mr. Tepper and Mr. Bolin, in consideration for their services as
directors of the Company, each was granted a non-qualified stock option
with respect to 3,000 shares of Common Stock at an exercise price of $52.00
per share. Mr. Tepper and Mr. Bolin immediately assigned their right, title
and interest in the options to the Purchasers. The options vest ratably on
each of the first, second, third, and fourth anniversaries of the January
2002 Transaction Date.
SIGNATURE
After reasonable inquiry and to the best of its knowledge and
belief, each of the undersigned certifies that the information set forth in
this statement is true, complete and correct.
Dated: October 23, 2002
APPALOOSA MANAGEMENT L.P.
By: APPALOOSA PARTNERS INC.,
Its General Partner
By: /s/ David A. Tepper
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Name: David A. Tepper
Title: President
APPALOOSA PARTNERS INC.
By: /s/ David A. Tepper
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Name: David A. Tepper
Title: President
/s/ David A. Tepper
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David A. Tepper