UNITED STATES
SECURITIES EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------------------------------------------------
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
TERRA INDUSTRIES INC.
---------------------
(Name of Issuer)
Common Stock, without par value
-----------------------------------------------
(Title of Class of Securities)
880915103
---------------------
(CUSIP Number)
December 31, 2007
-------------------------
(Date of Event which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
* 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 12 Pages
Exhibit Index: Page 11
SCHEDULE 13G
CUSIP No.: 880915103 Page 2 of 12 Pages
.................................................................................
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
ANCHORAGE CAPITAL MASTER OFFSHORE, LTD.
98-0418059
.................................................................................
2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [X]
.................................................................................
3. SEC Use Only
.................................................................................
4. Citizenship or Place of Organization
Cayman Islands
.................................................................................
Number of 5. Sole Voting Power 300,000
Shares ............................................................
Beneficially 6. Shared Voting Power 0
Owned by Each ............................................................
Reporting 7. Sole Dispositive Power 300,000
Person With ............................................................
8. Shared Dispositive Power 0
.................................................................................
9. Aggregate Amount Beneficially Owned by Each Reporting Person
300,000
.................................................................................
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
[ ]
.................................................................................
11. Percent of Class Represented by Amount in Row (9)
0.3% based on 89,507,153 shares outstanding as of October 23, 2007.
.................................................................................
12. Type of Reporting Person:
OO
SCHEDULE 13G
CUSIP No.: 880915103 Page 3 of 12 Pages
.................................................................................
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
ANCHORAGE ADVISORS, L.L.C.
20-0042271
.................................................................................
2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [X]
.................................................................................
3. SEC Use Only
.................................................................................
4. Citizenship or Place of Organization
Delaware
.................................................................................
Number of 5. Sole Voting Power 300,000
Shares ............................................................
Beneficially 6. Shared Voting Power 0
Owned by Each ............................................................
Reporting 7. Sole Dispositive Power 300,000
Person With ............................................................
8. Shared Dispositive Power 0
.................................................................................
9. Aggregate Amount Beneficially Owned by Each Reporting Person
300,000
.................................................................................
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
[ ]
.................................................................................
11. Percent of Class Represented by Amount in Row (9)
0.3% based on 89,507,153 shares outstanding as of October 23, 2007.
.................................................................................
12. Type of Reporting Person:
OO, IA
SCHEDULE 13G
CUSIP No.: 880915103 Page 4 of 12 Pages
.................................................................................
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
ANCHORAGE ADVISORS MANAGEMENT, L.L.C.
20-0042478
.................................................................................
2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [X]
.................................................................................
3. SEC Use Only
.................................................................................
4. Citizenship or Place of Organization
Delaware
.................................................................................
Number of 5. Sole Voting Power 300,000
Shares ............................................................
Beneficially 6. Shared Voting Power 0
Owned by Each ............................................................
Reporting 7. Sole Dispositive Power 300,000
Person With ............................................................
8. Shared Dispositive Power 0
.................................................................................
9. Aggregate Amount Beneficially Owned by Each Reporting Person
300,000
.................................................................................
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
[ ]
.................................................................................
11. Percent of Class Represented by Amount in Row (9)
0.3% based on 89,507,153 shares outstanding as of October 23, 2007.
.................................................................................
12. Type of Reporting Person:
OO, HC
SCHEDULE 13G
CUSIP No.: 880915103 Page 5 of 12 Pages
.................................................................................
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
ANTHONY L. DAVIS
.................................................................................
2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [X]
.................................................................................
3. SEC Use Only
.................................................................................
4. Citizenship or Place of Organization
United States of America
.................................................................................
Number of 5. Sole Voting Power 300,000
Shares ............................................................
Beneficially 6. Shared Voting Power 0
Owned by Each ............................................................
Reporting 7. Sole Dispositive Power 300,000
Person With ............................................................
8. Shared Dispositive Power 0
.................................................................................
9. Aggregate Amount Beneficially Owned by Each Reporting Person
300,000
.................................................................................
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
[ ]
.................................................................................
11. Percent of Class Represented by Amount in Row (9)
0.3% based on 89,507,153 shares outstanding as of October 23, 2007.
.................................................................................
12. Type of Reporting Person:
IN, HC
SCHEDULE 13G
CUSIP No.: 880915103 Page 6 of 12 Pages
.................................................................................
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
KEVIN M. ULRICH
.................................................................................
2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [X]
.................................................................................
3. SEC Use Only
.................................................................................
4. Citizenship or Place of Organization
Canada
.................................................................................
Number of 5. Sole Voting Power 300,000
Shares ............................................................
Beneficially 6. Shared Voting Power 0
Owned by Each ............................................................
Reporting 7. Sole Dispositive Power 300,000
Person With ............................................................
8. Shared Dispositive Power 0
.................................................................................
9. Aggregate Amount Beneficially Owned by Each Reporting Person
300,000
.................................................................................
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
[ ]
.................................................................................
11. Percent of Class Represented by Amount in Row (9)
0.3% based on 89,507,153 shares outstanding as of October 23, 2007.
.................................................................................
12. Type of Reporting Person:
IN, HC
Page 7 of 12 Pages
Item 1(a). Name of Issuer:
Terra Industries Inc. (the "Issuer").
Item 1(b). Address of Issuer's Principal Executive Offices:
The Company's principal executive offices are located at 600
Fourth Street, P.O. Box 6000, Sioux City, Iowa 51102
Item 2(a). Name of Person Filing:
This Statement is filed on behalf of each of the following
persons (collectively, the "Reporting Persons"):
i) Anchorage Capital Master Offshore, Ltd. ("Anchorage
Offshore");
ii) Anchorage Advisors, L.L.C. ("Advisors");
iii) Anchorage Advisors Management, L.L.C. ("Management");
iv) Anthony L. Davis ("Mr. Davis"); and
v) Kevin M. Ulrich ("Mr. Ulrich").
This statement related to Shares (as defined herein) held for the
account of Anchorage Offshore. Advisors is the investment advisor to Anchorage
Offshore. Management is the sole managing member of Advisors. Mr. Davis is the
President of Advisors and a managing member of Management, and Mr. Ulrich is the
Chief Executive Officer of Advisors and the other managing member of Management.
Item 2(b). Address of Principal Business Office or, if None, Residence:
The address of the principal business office of each of the
Reporting Persons is 610 Broadway, 6th Floor, New York, NY 10012.
Item 2(c). Citizenship:
1) Anchorage Offshore is a Cayman Islands exempted company
incorporated with limited liability;
2) Advisors is a Delaware limited liability company;
3) Management is a Delaware limited liability company;
4) Mr. Davis is a citizen of the United States of America; and
5) Mr. Ulrich is a citizen of Canada.
Page 8 of 12 Pages
Item 2(d). Title of Class of Securities:
Common Stock, without par value (the "Shares")
Item 2(e). CUSIP Number:
880915103
Item 3. If This Statement is Filed Pursuant to ss.ss.240.13d-1(b) or
240.13d-2(b) or (c), Check Whether the Person Filing is a:
This Item 3 is not applicable.
Item 4. Ownership:
Item 4(a) Amount Beneficially Owned:
As of December 31, 2007, each of the Reporting Persons may be
deemed beneficial owner of 300,000 Shares.
Item 4(b) Percent of Class:
The number of Shares of which the Reporting Persons may be deemed
to be the beneficial owner constitutes approximately 0.3% of the total number of
Shares outstanding (based upon information provided by the Issuer in its most
recently-filed quarterly report on Form 10-Q, there were 89,507,153 shares
outstanding as of October 23, 2007).
Item 4(c) Number of Shares of which such person has:
Anchorage Offshore:
-------------------
(i) Sole power to vote or direct the vote: 300,000
(ii) Shared power to vote or direct the vote: 0
(iii) Sole power to dispose or direct the disposition of: 300,000
(iv) Shared power to dispose or direct the disposition of: 0
Advisors:
---------
(i) Sole power to vote or direct the vote: 300,000
(ii) Shared power to vote or direct the vote: 0
(iii) Sole power to dispose or direct the disposition of: 300,000
(iv) Shared power to dispose or direct the disposition of: 0
Management:
-----------
(i) Sole power to vote or direct the vote: 300,000
(ii) Shared power to vote or direct the vote: 0
(iii) Sole power to dispose or direct the disposition of: 300,000
Page 9 of 12 Pages
(iv) Shared power to dispose or direct the disposition of: 0
Mr. Davis:
----------
(i) Sole power to vote or direct the vote: 300,000
(ii) Shared power to vote or direct the vote: 0
(iii) Sole power to dispose or direct the disposition of: 300,000
(iv) Shared power to dispose or direct the disposition of: 0
Mr. Ulrich:
-----------
(i) Sole power to vote or direct the vote: 300,000
(ii) Shared power to vote or direct the vote: 0
(iii) Sole power to dispose or direct the disposition of: 300,000
(iv) Shared power to dispose or direct the disposition of: 0
Item 5. Ownership of Five Percent or Less of a Class:
If this statement is being filed to report the fact that as of
the date hereof the reporting person has ceased to be the beneficial owner of
more than five percent of the class of securities, check the following /X/
Item 6. Ownership of More than Five Percent on Behalf of Another Person:
This Item 6 is not applicable.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on By the Parent Holding
Company:
This Item 7 is not applicable
Item 8. Identification and Classification of Members of the Group:
See disclosure in Item 2 hereof.
Item 9. Notice of Dissolution of Group:
This Item 9 is not applicable.
Item 10. Certification:
By signing below each of the Reporting Persons certifies that, to
the best of their knowledge and belief, the securities referred to above were
not acquired and are not held for the purpose of or with the effect of changing
or influencing the control of the issuer of the securities and were not acquired
and are not held in connection with or as a participant in any transaction
having that purpose or effect.
Page 10 of 12 Pages
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
ANCHORAGE CAPITAL MASTER OFFSHORE LTD.
Date: February 14, 2008
By: /s/ Kevin M. Ulrich
--------------------------------
Name: Kevin M. Ulrich
Title: Director
Date: February 14, 2008 ANCHORAGE ADVISORS, L.L.C.
By: Anchorage Advisors Management, L.L.C.,
its Managing Member
By: /s/ Anthony L. Davis
--------------------------------
Name: Anthony L. Davis
Title: Managing Member
Date: February 14, 2008 ANCHORAGE ADVISORS MANAGEMENT, L.L.C.
By: /s/ Anthony L. Davis
--------------------------------
Name: Anthony L. Davis
Title: Managing Member
Date: February 14, 2008 ANTHONY L. DAVIS
/s/ Anthony L Davis
----------------------------------------
Date: February 14, 2008 KEVIN M. ULRICH
/s/ Kevin M. Ulrich
----------------------------------------
Page 11 of 12 Pages
EXHIBIT INDEX
Ex. Page No.
--- --------
A Joint Filing Agreement, dated February 14, 2008 by and among
Reporting Persons........................................... 12
Page 12 of 12 Pages
EXHIBIT A
JOINT FILING AGREEMENT
The undersigned hereby agree that the statement on Schedule 13G with
respect to the Common Stock of Terra Industries, Inc. dated as of February 14,
2008 is, and any amendments thereto (including amendments on Schedule 13D)
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.
ANCHORAGE CAPITAL MASTER OFFSHORE LTD.
Date: February 14, 2008
By: /s/ Kevin M. Ulrich
--------------------------------
Name: Kevin M. Ulrich
Title: Director
Date: February 14, 2008 ANCHORAGE ADVISORS, L.L.C.
By: Anchorage Advisors Management, L.L.C.,
its Managing Member
By: /s/ Anthony L. Davis
--------------------------------
Name: Anthony L. Davis
Title: Managing Member
Date: February 14, 2008 ANCHORAGE ADVISORS MANAGEMENT, L.L.C.
By: /s/ Anthony L. Davis
--------------------------------
Name: Anthony L. Davis
Title: Managing Member
Date: February 14, 2008 ANTHONY L. DAVIS
/s/ Anthony L Davis
----------------------------------------
Date: February 14, 2008 KEVIN M. ULRICH
/s/ Kevin M. Ulrich
----------------------------------------