Attached files
Exhibit 99.2
DEBTOR: | Adfitech, Inc. | CASE NUMBER: | 09-17788-DK |
OFFICE OF THE UNITED STATES TRUSTEE - BALTIMORE DIVISION
MONTHLY OPERATING REPORT
CHAPTER 11
BUSINESS DEBTORS
Form 2-A
COVER SHEET AND QUESTIONNAIRE [a]
For Period Ended September 30, 2009
Accounting Method: x Accrual Basis ¨ Cash Basis
THIS REPORT IS DUE 20 DAYS AFTER THE END OF THE MONTH
Mark One Box for Each Required Document: | Debtor must attach each of the following reports/documents unless the U. S. Trustee has waived the requirement in writing. File the original with the Clerk of Court. Submit a duplicate, with original signature, to the U. S. Trustee. |
Report/Document Attached |
Previously Waived |
REQUIRED REPORTS/DOCUMENTS | ||
x | ¨ | 1. Cash Receipts and Disbursements Statement (Form 2-B) | ||
x | ¨ | 2. Balance Sheet (Form 2-C) | ||
x | ¨ | 3. Profit and Loss Statement (Form 2-D) | ||
x | ¨ | 4. Supporting Schedules (Form 2-E) | ||
x | ¨ | 5. Disbursements Summary (Form 2-F) | ||
x | ¨ | 6. Narrative (Form 2-G) | ||
x | ¨ | 7. Bank Statements for All Bank Accounts | ||
x | ¨ | 8. Bank Statement Reconciliations for all Bank Accounts |
QUESTIONNAIRE |
Yes | No | ||
Please answer the questions below: |
||||
1. Is the business still operating? |
x | ¨ | ||
2. Were any assets (other than inventory) sold this month? |
¨ | x | ||
3. Were all employees timely paid this month? |
x | ¨ | ||
4. Are all insurance policies and operating licenses current and in effect? |
x | ¨ | ||
5. Did you open any new bank accounts this month? |
¨ | x | ||
6. Did you deposit all receipts into your DIP account this month? |
x | ¨ | ||
7. Have all taxes been timely paid (payroll, sales, etc.)? |
x | ¨ | ||
8. Are you current on U.S. Trustee quarterly fees payments? |
x | ¨ |
I declare under penalty of perjury that the following Monthly Operating Report, and any statements and attachments thereto are true, accurate and correct to the best of my belief.
Executed on: | Print Name: | Samuel E. Meek | ||||||
Signature: | /s/ Samuel E. Meek | |||||||
Title: | President |
[a] | See Explanatory Statement, Reservation of Rights and Global Footnotes for Monthly Operating Report (Form 2-G) which is incorporated herein by reference. |
DEBTOR: | Adfitech, Inc. | CASE NO: | 09-17788-DK |
Form 2-B
CASH RECEIPTS AND DISBURSEMENTS STATEMENT (SEE NOTE A)
For Period: September 2009
CASH FLOW SUMMARY
Current Month |
Accumulated | |||||||
1. Beginning Cash Balance |
$ | 10,077,933 | (1) | $ | 7,985,024 | (1) | ||
2. Cash Receipts |
||||||||
Operations |
2,940,800 | 15,140,675 | ||||||
Sale of Assets |
0 | 0 | ||||||
Loans/advances |
0 | 0 | ||||||
Total Cash Receipts |
2,940,800 | $ | 15,140,675 | |||||
3. Cash Disbursements |
||||||||
Operations |
2,445,423 | 12,091,539 | ||||||
Debt Service/Secured loan payment |
0 | 0 | ||||||
Professional fees/U.S. Trustee fees |
536,686 | 997,536 | ||||||
Other |
0 | 0 | ||||||
Total Cash Disbursements |
2,982,109 | $ | 13,089,075 | |||||
4. Net Cash Flow (Total Cash Receipts less Total Cash Disbursements) |
(41,310 | ) | 2,051,600 | |||||
5. Ending Cash Balance (to Form 2-C) |
$ | 10,036,624 | (2) | $ | 10,036,624 | (2) | ||
CASH BALANCE SUMMARY
Account Name/Number |
Institution |
Bank Balance |
Deposits In Transit |
Outstanding Checks [2] |
Book Balance |
|||||||||||
Petty Cash |
$ | 7.06 | $ | | $ | | $ | 7.06 | ||||||||
Operating/xxx4580 |
Bank of Oklahoma | 12,378.21 | 26.03 | (314,523.90 | ) | (302,119.66 | ) | |||||||||
| ||||||||||||||||
Eurosweep/xxx1953 |
Bank of Oklahoma | 10,274,164.44 | | | 10,274,164.44 | |||||||||||
| ||||||||||||||||
| ||||||||||||||||
Payroll/xx4591 |
Bank of Oklahoma | 0.00 | 0.00 | (581.21 | ) | (581.21 | ) | |||||||||
| ||||||||||||||||
Employee Benefit/xxx6216 [1] |
Bank of Oklahoma | 0.00 | 0.00 | 0.00 | | |||||||||||
| ||||||||||||||||
Flex Spending/xxx7672 [1] |
Bank of Oklahoma | 0.00 | 0.00 | 0.00 | | |||||||||||
| ||||||||||||||||
Utility Deposit/xxx9938 |
Bank of Oklahoma | 65,153.02 | 0.00 | 0.00 | 65,153.02 | |||||||||||
TOTAL |
$ | 10,351,702.73 | $ | 26.03 | $ | (315,105.11 | ) | $ | 10,036,623.65 | (2) | ||||||
(must agree with Ending Cash Balance above) |
[1] | These employee benefit accounts are maintained by a third-party administrator (TPA). Adfitech does not receive statements for these accounts. Adfitech funds these accounts based upon employee contributions or upon demand for payment by the TPA. All funds deposited to these accounts are restricted and are not available to Adfitech for operations. |
[2] | Includes book/bank reconciling items. |
(A) | The term cash includes all forms of currency i.e., checks, cash, money orders, etc. |
(1) | Accumulated beginning cash balance is the cash available at the commencement of the case. Current month beginning cash balance should equal the previous months ending balance. |
(2) | All cash balances should be the same. |
Page 1 of 2
DEBTOR: | Adfitech, Inc. | CASE NO: | 09-17788-DK |
Form 2-B
CASH RECEIPTS AND DISBURSEMENTS STATEMENT (SEE NOTE A)
For Period: September 1, 2009 to September 30, 2009
CASH DISBURSEMENTS DETAIL |
Account No: | |
(attach additional sheets as necessary) |
Date |
Check No. | Payee |
Description (Purpose) |
Amount | ||||||
$ | 2,982,109.00 | |||||||||
See attached schedule |
||||||||||
Total Cash Disbursements | $ | 2,982,109.00 | (1) | |||||||
(A) | The term cash includes all forms of currency i.e., checks, cash, money orders, etc. |
(1) | Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 1 |
Page 2 of 2
CASE NAME: Adfitech, Inc. | CASE NUMBER: 09-17788-DK |
Form 2-C
COMPARATIVE BALANCE SHEET
(Accrual Basis)
September 30, 2009 | Petition Date April 30, 2009 |
|||||||
Assets | ||||||||
Current Assets |
||||||||
Cash |
||||||||
Petty Cash |
$ | 7 | $ | 22 | ||||
Bank of Oklahoma Eurosweep Account |
9,971,364 | 7,984,114 | ||||||
Bank of Oklahoma Operating Account |
| 889 | ||||||
Bank of Oklahoma Flex Spending Account [1] |
| | ||||||
Bank of Oklahoma Employee Benefits Account [1] |
| | ||||||
Bank of Oklahoma Payroll Account |
| | ||||||
Bank of Oklahoma Utility Deposit Account |
65,253 | | ||||||
Total Cash |
10,036,624 | 7,985,024 | ||||||
Accounts Receivable - Sales |
||||||||
Pre-petition: Due from Related Entities |
| 37,500 | ||||||
Pre-petition: Other Receivables |
76,616 | 2,996,545 | ||||||
Post-petition: Due from Related Entities |
| | ||||||
Post-petition: Other Receivables |
3,349,446 | | ||||||
Total Current Post-Petition Accounts Receivable |
3,426,062 | 3,034,045 | ||||||
Employee Receivables |
1 | | ||||||
Prepaid Expenses |
247,596 | 280,205 | ||||||
Total Current Assets |
13,710,283 | 11,299,274 | ||||||
Other Assets |
||||||||
Land |
2,017,000 | 2,017,000 | ||||||
Building (net of depreciation) |
4,544,999 | 4,595,029 | ||||||
Furniture and Fixtures (net of depreciation) |
119,337 | 155,571 | ||||||
Computer Hardware (net of depreciation) |
691,690 | 788,156 | ||||||
Software (net of depreciation) |
15,506 | 18,757 | ||||||
Total Fixed Assets Net of Depreciation |
7,388,532 | 7,574,514 | ||||||
Goodwill |
9,152,249 | 9,152,249 | ||||||
Total Other Assets |
16,540,782 | 16,726,763 | ||||||
Total Assets |
$ | 30,251,064 | $ | 28,026,037 | ||||
Liabilities and Stockholders Equity | ||||||||
Liabilities Not Subject to Compromise |
||||||||
Current Post-Petition Accounts Payable |
||||||||
Due to Related Entities |
$ | | $ | | ||||
Post-Petition Accrued Payroll and Payroll Tax Expense |
665,053 | | ||||||
Interperiod over/under funding of benefit account |
1,083 | | ||||||
Post-Petition Accrued Property Taxes |
41,725 | | ||||||
Accrued Expenses (non-salary related) |
26,000 | | ||||||
Accrued State Income Tax (2009) |
62,500 | | ||||||
Accrued Professional Fees |
| | ||||||
Post-Petition Trade Payable |
79,484 | | ||||||
Total Current Post-Petition Accounts Payable |
875,845 | | ||||||
Total Liabilities Not Subject to Compromise |
875,845 | | ||||||
Liabilities Subject to Compromise [2] |
||||||||
Secured Creditor Claims |
| | ||||||
Unsecured Priority Claims |
33,380 | 790,798 | ||||||
General Unsecured Claims - Pass-through Expenses |
2,975 | 233,158 | ||||||
General Unsecured Claims - Non-pass-through Trade Claims |
7,064 | 20,137 | ||||||
General Unsecured Claims - Guarantee |
1,638,788,430 | 1,638,788,430 | ||||||
Total Liabilities Subject to Compromise |
1,638,831,850 | 1,639,832,523 | ||||||
Total Liabilities |
1,639,707,695 | 1,639,832,523 | ||||||
Stockholders Equity |
||||||||
Stockholders Equity |
19,955,550 | 19,955,550 | ||||||
Retained Earnings - Pre-petition |
(1,630,761,513 | ) | (1,631,762,036 | ) | ||||
Retained Earnings - Post-petition |
1,349,333 | | ||||||
Total Stockholders Equity |
(1,609,456,630 | ) | (1,611,806,486 | ) | ||||
Total Liabilities and Stockholders Equity |
$ | 30,251,064 | $ | 28,026,037 | ||||
Notes:
[1] | Restricted Cash |
[2] | Petition date claim balance based on Scheduled Claims |
CASE NAME: Adfitech, Inc. | CASE NUMBER: 09-17788-DK |
Form 2-D
PROFIT AND LOSS STATEMENT
For the Period: September 2009
(Accrual Basis)
Aug 2009 | Sep 2009 | Petition To Date | ||||||||||
Operating Revenue |
||||||||||||
Quality Control |
$ | 2,564,607 | $ | 2,534,997 | $ | 11,841,417 | ||||||
Professional fees |
400 | 0 | (781 | ) | ||||||||
Post Closing Services |
220,048 | 229,413 | 1,058,849 | |||||||||
Pre-Funding |
1,560 | 1,680 | 15,560 | |||||||||
Imaging |
0 | 0 | 0 | |||||||||
Physical Storage Fees |
0 | 0 | 0 | |||||||||
TMHL Underwriting |
0 | 0 | 0 | |||||||||
Occupancy Verification Fee |
(575 | ) | 450 | 400 | ||||||||
Document Retrieval |
23,390 | 23,485 | 125,530 | |||||||||
Interest Income |
3,796 | 4,152 | 20,358 | |||||||||
Late Charges |
3 | 228 | 1,222 | |||||||||
Quality Jobs/TIPs Income |
31,298 | 31,975 | 166,741 | |||||||||
Miscellaneous Income |
(1 | ) | 0 | 2,279 | ||||||||
Total Operating Revenue |
2,844,526 | 2,826,379 | 13,231,574 | |||||||||
Expenses |
||||||||||||
Salaries |
1,198,697 | 1,237,467 | 6,034,272 | |||||||||
Salaries - Additional Files & O/T |
194,594 | 183,172 | 921,380 | |||||||||
Benefits - 401K Matching |
23,720 | 23,264 | 124,133 | |||||||||
Employee Appreciation & Development |
3,337 | 4,656 | 15,196 | |||||||||
Employee Banquet |
2,400 | 2,400 | 12,000 | |||||||||
Contract Labor |
3,680 | 1,440 | 9,280 | |||||||||
Employee Recruitment Expense |
529 | 2,914 | 12,395 | |||||||||
Payroll Taxes |
78,606 | 104,415 | 466,700 | |||||||||
Payroll Processing Fee |
2,186 | 1,912 | 9,595 | |||||||||
Employee Health Insurance |
227,021 | 260,200 | 1,168,685 | |||||||||
Legal & Professional Fees (Ordinary Course) |
6,100 | 10,219 | 24,583 | |||||||||
Office Supplies |
21,482 | 17,770 | 99,522 | |||||||||
Copier Supplies |
658 | 836 | 2,652 | |||||||||
Software Expense |
0 | 504 | 666 | |||||||||
Telephone Expense |
18,239 | 19,771 | 82,084 | |||||||||
Printing |
1,481 | 1,584 | 10,644 | |||||||||
Postage |
13,155 | 15,258 | 69,423 | |||||||||
Shipping |
30,083 | 23,933 | 123,657 | |||||||||
Strategic Partners Expense |
1,435 | 2,830 | 6,410 | |||||||||
Insurance Expense |
5,425 | 5,425 | 26,678 | |||||||||
QC Appraisals |
184,824 | 141,099 | 818,732 | |||||||||
QC Appraisals (Contra) |
(181,889 | ) | (147,805 | ) | (821,687 | ) | ||||||
QC Reverifications |
17,069 | (74,178 | ) | (65,976 | ) | |||||||
In-File Credit Reports |
21,163 | 0 | 43,494 | |||||||||
Mtg. Credit Reports |
6,361 | 175,034 | 477,501 | |||||||||
Mtg. Credit Reports (Contra) |
(4,219 | ) | (99,880 | ) | (405,199 | ) | ||||||
Outsourced External Data |
20,659 | 24,702 | 113,460 | |||||||||
Property Value Requests |
0 | 0 | 0 | |||||||||
External Collateral Reviews |
0 | (595 | ) | (9,340 | ) | |||||||
Filing Fees |
0 | 0 | (20 | ) | ||||||||
High Cost Check |
(3,437 | ) | 1,047 | (16,775 | ) | |||||||
Depreciation |
44,246 | 44,352 | 221,605 | |||||||||
Fares and Lodging |
3,382 | 2,302 | 12,376 | |||||||||
Meals - Travel |
0 | 0 | 56 | |||||||||
Auto Expense Reimbursement |
87 | 36 | 167 | |||||||||
Conference Expense |
259 | 7,201 | 16,230 | |||||||||
Entertainment |
1,281 | 56 | 4,755 | |||||||||
Meals & Entertainment |
0 | 0 | 0 | |||||||||
Advertising |
11,283 | 6,696 | 36,869 | |||||||||
Contributions |
0 | 0 | 250 | |||||||||
Business Promotion |
0 | 500 | 513 | |||||||||
Lease-Co Location - AT&T |
5,627 | 5,627 | 28,135 |
CASE NAME: Adfitech, Inc. | CASE NUMBER: 09-17788-DK |
Form 2-D
PROFIT AND LOSS STATEMENT
For the Period: September 2009
(Accrual Basis)
Aug 2009 | Sep 2009 | Petition To Date | ||||||||
Physical Storage Fees |
548 | 528 | 2,222 | |||||||
Document Recycling |
6,838 | 6,427 | 34,429 | |||||||
Equipment Expense |
19,128 | 27,346 | 114,956 | |||||||
Hardware & Software Maintenance |
12,444 | 15,799 | 67,349 | |||||||
Processing & Administration Fees |
0 | 917 | 1,847 | |||||||
Dues & Subscriptions |
4 | 0 | 2,172 | |||||||
Miscellaneous Taxes |
1,280 | 1,280 | 9,750 | |||||||
Miscellaneous Expense |
0 | 0 | 0 | |||||||
Bank Account Fees |
1,339 | 1,230 | 6,874 | |||||||
Bad Debt Expense |
0 | 56,998 | 58,926 | |||||||
Buildings - Taxes & Insurance |
8,351 | 8,351 | 41,699 | |||||||
Building - Maintenance & Supplies |
20,168 | 9,278 | 68,349 | |||||||
Building - Utilities |
20,645 | 18,658 | 88,910 | |||||||
Total Expenses Before Taxes |
2,050,266 | 2,152,976 | 10,172,585 | |||||||
Net Income (Loss) Before Taxes |
794,259 | 673,404 | 3,058,989 | |||||||
State Income Tax Expense |
12,500 | 12,500 | 62,500 | |||||||
Reorganization Expenses |
(74,031 | ) | 438,605 | 999,455 | ||||||
Net Income (Loss) |
$ | 855,791 | $ | 222,299 | $ | 1,997,035 | ||||
DEBTOR: | Adfitech, Inc. | CASE NO: | 09-17788-DK |
Form 2-E
SUPPORTING SCHEDULES
For Period: September 1, 2009 to September 30, 2009
POST PETITION TAXES PAYABLE SCHEDULE
Beginning Balance (1) |
Amount Accrued |
Amount Paid |
Date Paid |
Check Number |
Ending Balance | |||||||||||
Income Tax Withheld: |
||||||||||||||||
Federal |
$ | 0 | $ | 117,184 | $ | 117,184 | various | wire | $ | 0 | ||||||
State |
0 | 43,662 | 43,662 | various | wire | 0 | ||||||||||
FICA Tax Withheld |
0 | 91,774 | 91,774 | various | wire | 0 | ||||||||||
Employers FICA Tax |
0 | 91,773 | 91,773 | various | wire | 0 | ||||||||||
Unemployment Tax |
||||||||||||||||
Federal |
0 | 392 | 392 | various | wire | 0 | ||||||||||
State |
0 | 3,542 | 3,542 | various | wire | 0 | ||||||||||
Accrued Payroll Taxes [1] |
33,328 | 8,707 | 0 | 42,035 | ||||||||||||
Sales, Use & |
||||||||||||||||
Excise Taxes |
0 | 0 | 0 | 0 | ||||||||||||
Property Taxes |
33,380 | 8,345 | 0 | 41,725 | ||||||||||||
Accrued Income Tax: |
||||||||||||||||
Federal |
0 | 0 | 0 | 0 | ||||||||||||
State |
50,000 | 12,500 | 0 | 62,500 | ||||||||||||
Other: |
0 | 0 | 0 | 0 | ||||||||||||
TOTALS |
$ | 116,708 | $ | 377,879 | $ | 348,327 | $ | 146,260 | ||||||||
[1] | Debtor does not breakdown accrued payroll taxes for payroll due through month-end between that due for federal and state taxing authorities. This accrual is presented as a single number for the purposes of this report. |
(1) | For first report, Beginning Balance will be $0; thereafter, Beginning Balance will be Ending Balance from prior report. |
INSURANCE SCHEDULE
Carrier |
Amount of Coverage |
Expiration Date |
Premium Paid Through | ||||||
Workers Compensation | The Hartford | $ | 500,000 | 1/1/10 | 1/1/10 | ||||
General Liability | The Hartford | $ | 2 Mil/$4 Mil | 6/1/10 | 6/1/10 | ||||
Property (Fire, Theft) | The Hartford | $ | 2 Mil/$4 Mil | 6/1/10 | 6/1/10 | ||||
Vehicle | N/A | ||||||||
Other (list): | |||||||||
Employee Dishonesty |
Travelers | $ | 200,000 | 4/8/11 | 4/8/10 |
Page 1 of 2
DEBTOR: | Adfitech, Inc. | CASE NO: | 09-17788-DK |
Form 2-E
SUPPORTING SCHEDULES
For Period: September 1, 2009 to September 30, 2009
ACCOUNTS RECEIVABLE AND POST PETITION PAYABLE AGING
Due |
Accounts Receivable |
Post Petition Accounts Payable | |||||
Under 30 days |
$ | 2,921,225 | $ | ||||
30 to 60 days |
315,210 | 0 | |||||
61 to 90 days |
99,184 | 0 | |||||
91 to 120 days |
13,128 | 0 | |||||
Over 120 days |
700 | 0 | |||||
Total Post Petition |
3,349,446 | ||||||
Pre Petition Amounts |
76,616 | [1] | |||||
Total Accounts Receivable |
$ | 3,426,062 | |||||
Less: Bad Debt Reserve |
0 | ||||||
Net Accounts Receivable (to Form 2-C) |
$ | 3,426,062 | |||||
|
Total Post Petition Accounts Payable |
|
$ | 0 | |||
[1] | During the reporting period, Debtor wrote off $37,500 of accounts receivable from a related debtor, TMST Home Loans, Inc., formerly known as Thornburg Mortgage Home Loans, Inc., as uncollectable. |
* | Attach a detail listing of accounts receivable and post-petition accounts payable |
SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS [1]
Month-end Retainer Balance |
Current Months Accrual |
Paid in Current Month |
Date of Court Approval |
Month-end Balance Due* |
|||||||||||||
Venable LLP |
$ | 0 | $ | 0 | $ | 100,548 | [2] | 5/22/07 | $ | 0 | |||||||
Orrick Herrington, et al |
0 | 0 | 69,016 | [2] | 5/4/09 | 0 | |||||||||||
Quinn Emmanual |
0 | 0 | 25,698 | [2] | 5/20/09 | 0 | |||||||||||
Houlihan Lokey |
0 | 7 | 100,007 | 6/5/09 | 0 | ||||||||||||
Protiviti Inc. |
0 | 0 | 157,949 | [2] | 51/09 | 0 | |||||||||||
JH Cohn |
0 | 0 | 81,309 | [2] | 6/12/09 | 0 | |||||||||||
Tydings & Rosenberg |
0 | 0 | 2,160 | [2] | 6/12/09 | 0 | |||||||||||
U.S. Trustee |
0 | 0 | 0 | 0 | |||||||||||||
Other: |
0 | 0 | 0 | 0 | |||||||||||||
Total |
$ | 0 | $ | 7 | $ | 536,686 | $ | $0 | |||||||||
[1] | Debtor is one of a group of debtors administratively consolidated under Case No. 09-17787-DK. The professionals working for the consolidated debtors are incurring time on behalf of both Adfitech and the other debtors. Time for these professionals has not yet been allocated between the estates for all periods. Where this allocation has been done, the fees specific to Adfitech will be presented here. For all other fees, please refer to the monthly operating report filed for the other consolidated debtors. |
[2] | A portion of the professional fees charged to the administratively consolidated debtors and paid by TMST, Inc. (TMST), a related debtor, for the periods May and June were allocated to Adfitech during this reporting period. During the reporting period, Adfitech paid a total of $436,679.46 to TMST to reimburse for these allocated fees. |
* | Balance due to include fees and expenses incurred but not yet paid. |
SCHEDULE OF PAYMENTS AND TRANSFERS TO PRINCIPALS/EXECUTIVES**
Payee Name |
Position |
Nature of Payment |
Amount | ||||
Officers | various | Salary/Commission | $ | 74,828 | |||
Officers | various | Bonus | 39,293 | ||||
Officers | various | 401K Contribution | 8,322 | ||||
Officers | various | Expense Reimbursement | 8,563 |
** | List payments and transfers of any kind and in any form made to or for the benefit of any proprietor, owner, partner, shareholder, officer or director. |
Page 2 of 2
DEBTOR: | Adfitech, Inc. | CASE NO: | 09-17788-DK |
Form 2-F
DISBURSEMENT SUMMARY
For the Month Ended: September 2009
QUARTERLY DISBURSEMENT CALCULATION
1 | Disbursements made in calendar quarter |
July 2009 | $ | 3,137,824 | |
August 2009 | 2,372,579 | ||
September 2009 | 2,982,109 | ||
Quarterly Total | $ | 8,492,512 | |
FEE SCHEDULE
Quarterly Disbursements |
Fee | Quarterly Disbursements |
Fee | |||||
$0 to $14,999 |
$ | 325 | $1,000,000 to $1,999,999 | $ | 6,500 | |||
$15,000 to $74,999 |
$ | 650 | $2,000,000 to $2,999,999 | $ | 9,750 | |||
$75,000 to $149,999 |
$ | 975 | $3,000,000 to $4,999,999 | $ | 10,400 | |||
$150,000 to $224,999 |
$ | 1,625 | $5,000,000 to $14,999,999 | $ | 13,000 | |||
$225,000 to $299,999 |
$ | 1,950 | $15,000,000 to $29,999,999 | $ | 20,000 | |||
$300,000 to $999,999 |
$ | 4,875 | $30,000,000 or more | $ | 30,000 |
Interest will be assessed on Chapter 11 quarterly fees not paid by the end of the month following the end of the calander quarter pursuant to 31 U.S.C. Sec. 3717. The interest rate assessed is the rate in effect as determined by the Treasury Department at the time the account becomes past due.
Failure to pay the quarterly fee is cause for conversion or dismissal of the chapter 11 case. [11 U.S.C. Sec. 1112(b)(10)]
Page 1 of 1
DEBTOR: | Adfitech, Inc. | CASE NO: | 09-17788-DK |
Form 2-G
NARRATIVE
For the Month Ended: September 2009
Please provide a brief description of any significant business and legal actions taken by the debtor, its creditors, or the court during the reporting period, any unusual or non-recurring accounting transactions that are reported in the financial statements, and any significant changes in the financial condition of the debtor which have occurred subsequent to the report date.
EXPLANATORY STATEMENT,
RESERVATION OF RIGHTS AND GLOBAL FOOTNOTES
FOR MONTHLY OPERATING REPORT
The Debtor reserves all rights to dispute the amount, allowance, priority, treatment and/or secured or other status of any and all claims against the Debtor or its estate referred to herein. The Debtor reserves the right to (a) amend and supplement this Monthly Operating Report from time to time, and (b) assert any and all potential claims and causes of action of the Debtors estate regardless of whether such claim or cause of action is identified herein. Any values presented are not and should not be deemed to be an admission, representation or waiver with respect to the actual value of any asset or amount of any liability or claim. The actual realizable value and/or fair market value of assets, liabilities and claims may differ significantly from the values presented.
The Debtor prepared this Monthly Operating Report with the assistance of its financial advisor, Protiviti Inc. (Protiviti), based upon the information available to date. This Monthly Operating Report does not purport to present financial statements in accordance with Generally Accepted Accounting Principles, and the information contained herein has not been subjected to audit or review by Protiviti or any other party on behalf of the Debtor.
This Explanatory Statement, Reservation of Rights and Global Footnotes is hereby incorporated by reference into, and comprises an integral part of, the Debtors Monthly Operating Report and should be referred to and considered in connection with any review of the report.
NARRATIVE
ADFITECH, Inc. (Adfitech) continues to operate as a going concern. Adfitech is an independently-operated, wholly-owned subsidiary of TMST Home Loans, Inc., formerly known as Thornburg Mortgage Home Loans, Inc. (TMHL), and provides mortgage-related auditing and quality control consulting services to financial institutions. Adfitech is self-funded, has its own separate workforce and bank accounts, and operates independently from the TMST Debtors including TMST, Inc., formerly known as Thornburg Mortgage, Inc. (TMST), and TMHL at offices located in Edmond, Oklahoma on unencumbered real estate owned by Adfitech.
On September 16, 2009, the United States Trustee filed a Motion for an Order Directing the Appointment of a Chapter 11 Trustee or, in the Alternative, an Examiner [TMST Docket No. 362]. On September 21, 2009, the Court held a status conference and scheduled a hearing on the United States Trustees motion for October 7, 2009. The hearing commenced on October 7, 2009 and has been continued to October 20, 2009.
The events related to the United States Trustees motion are described in the separate monthly operating report for September 2009 filed by TMST and the other TMST Debtors in Case No. 09-17787 (DWK). Adfitech and its officers and employees were not involved in those events.
Adfitech, the Official Committee of Unsecured Creditors (the Creditors Committee), and their respective advisors continue to work together in a collaborative manner. The parties respective advisors were in frequent contact during the month and made progress in addressing the information requests of the Creditors Committee with respect to Adfitech and its ongoing operations.
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DEBTOR: | Adfitech, Inc. | CASE NO: | 09-17788-DK |
Form 2-G
NARRATIVE
For the Month Ended: 9/30/2009
NARRATIVE
On August 25, 2009, Adfitech and the TMST Debtors filed a motion to extend the exclusive periods during which they may file a Chapter 11 plan or plans and solicit acceptances thereof. On September 14, 2009, the Court entered an Order extending the exclusive periods to October 28, 2009 and December 27, 2009, respectively.
As previously reported, the Debtors at the request of the Creditors Committee decided to stop the sale process for Adfitech and to work with the Creditors Committee to formulate a Chapter 11 plan of reorganization for Adfitech. On October 16, 2009, Adfitech successfully concluded its discussions with the Creditors Committee and filed its Chapter 11 Plan of Reorganization [Adfitech Docket No. 21].
Effective September 15, 2009, Larry Goldstone and Clarence G. Simmons, III resigned as directors of Adfitech. On October 6, 2009, Anne-Drue M. Anderson was elected as a director of Adfitech. Thomas G. Apel, the Chairman and Chief Executive Officer of Adfitech, resigned as an officer and director effective October 13, 2009. At a meeting of the Adfitech Board of Directors held on October 12, 2009, the current President of Adfitech, Samuel E. Meek, was elected as a director and Ms. Anderson was selected as Chairman of the Board. Adfitech is engaged in discussions with Mr. Apel about his continuing to assist Adfitech by serving as a consultant on an hourly basis.
During the reporting period, Adfitech determined that the pre-petition accounts receivable amount of $37,500 related to TMHL would be uncollectible and, accordingly, that receivable was written off as a bad debt.
During the month of September, Adfitech filed its monthly operating report for the period August 1 through August 31, 2009.
The quarterly fees owed to the United States Trustee for the quarter ending September 30, 2009 were paid on or about October 13, 2009.
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2009 September Disbursements Adfitech (Form 2B)
ACENITEC |
150.00 | |
Adfitech Payroll |
840,170.63 | |
ADP |
2,828.58 | |
ADP SCREENING & SELECTION SERVICES |
2,515.98 | |
ADP Tax |
348,328.38 | |
ADP Tx |
68,664.49 | |
AFLAC |
5,938.25 | |
ALEX TRAN |
292.58 | |
ALLSTATE APPRAISAL |
1,975.00 | |
AMERICAN HERITAGE LIFE INSURANCE CO. |
218.72 | |
AMERITECH OUTDOOR CREATIONS, LLC |
255.00 | |
AT&T |
213.27 | |
AT&T -IL |
4,186.57 | |
AT&T - NEWARK |
5,627.00 | |
AT&T BUSINESS SERVICES |
213.77 | |
AT&T MOBILITY (CINGULAR) |
1,444.98 | |
AVAYA, INC. |
5,747.28 | |
B S A APPRAISALS |
175.00 | |
Bank of Oklahoma Anlaysis |
1,361.67 | |
BETTY CAGLE |
350.00 | |
BILL LEWIS APPRAISAL COMPANY |
875.00 | |
BILLING SOLUTIONS, INC. |
6,181.65 | |
BUSINESS IMAGING SYSTEMS, INC. |
7,862.65 | |
CASTLE & COOKE MORTGAGE, LLC |
11,920.40 | |
CHASE - BANK ONE |
2,521.11 | |
CHRIS WEBER |
36.30 | |
CHRISTINE MARIE SCHWARTZ |
1,440.00 | |
CITY OF EDMOND |
18,523.23 | |
CLEAR CAPITAL |
33,225.00 | |
CLEARINGHOUSE, ATLAS# 000405390800 |
211.00 | |
COLE & REED, P.C. |
9,300.00 | |
COMFORT, INC. |
165.06 | |
COX COMMUNICATIONS |
3,651.69 | |
DAVID PARMER |
414.84 | |
DEBORAH MAPLE |
140.00 | |
DELL MARKETING L.P. |
8,763.64 | |
DISCOVER BANK |
383.84 | |
EMC NATIONAL LIFE CO. |
246.56 |
Monday, October 19, 2009 |
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Employee Benefit Accounts |
299,128.62 | |
Employees |
114,111.13 | |
FARMER BROTHERS COFFEE |
1,174.68 | |
FEDEX |
30.08 | |
FIELD VERIFICATION ASSOCIATES |
145,326.50 | |
FIRST AMERICAN CREDCO |
175,034.25 | |
FORT DEARBORN LIFE INSURANCE CO. |
2,054.22 | |
FOURTH DIMENSION NETWORKS CORP. |
198.00 | |
FRANCO-POSTALIA |
646.50 | |
FRED WEBER |
3,294.31 | |
GABINOS LAWN & LANDSCAPE |
1,650.00 | |
GENERAL MAILING EQUIPMENT, INC. |
487.76 | |
GREAT PLAINS COCA COLA BOTTLING CO. |
926.90 | |
HEDGPATH APPRAISAL COMPANY |
525.00 | |
HOULIHAN LOKEY HOWARD & ZUKIN |
100,007.00 | |
JH Cohn (Allocated reimbursement to TMST) |
81,308.96 | |
JOEL C. HALL |
317.48 | |
JOHN J. ROSENHAMER |
1,271.45 | |
JOHNSON APPRAISAL SERVICE |
175.00 | |
JONES APPRAISAL SERVICE |
325.00 | |
KATHY HUFF |
632.61 | |
LANDAMERICA LENDER SERVICES/ONE STOP |
24,450.00 | |
LENDERS ONE |
2,830.00 | |
LENDING FORMS |
1,097.64 | |
LEXIS-NEXIS |
54.46 | |
LINCOLN COUNTY APPRAISALS |
450.00 | |
LOVE, BEAL, & NIXON P.C. |
916.22 | |
MAVENT INC. |
3,304.60 | |
MAZZIOS |
212.17 | |
MCAFEE & TAFT |
1,517.63 | |
METLIFE SMALL BUSINESS CENTER |
11,207.27 | |
MIDCON DATA SERVICES, INC. |
528.00 | |
MINUTEMAN PRESS |
1,583.66 | |
MISC FEES PAYEE |
23,894.50 | |
NAFCU |
300.00 | |
NATIONAL REAL ESTATE INFORMATION SERVICE |
53,070.00 | |
NSTN |
2,030.00 | |
NVMS |
50.00 | |
OFFICE DEPOT, INC. |
245.54 | |
OFFICE OF THE ATTORNEY GENERAL |
277.84 | |
OFFICEMAX CONTRACT, INC. |
10,357.34 |
Monday, October 19, 2009 |
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OKLAHOMA DEPARTMENT OF HUMAN SERVICES |
628.23 | |
OKLAHOMA DUSTERS, INC. |
5,776.11 | |
OKLAHOMA NATURAL GAS |
134.40 | |
OKLAHOMA TAX COMMISSION |
130.03 | |
Orrick Herrington (Allocated reimbursement to TMST) |
69,015.50 | |
Payroll Tax Refund |
153.92 | |
PHILADELPHIA AMERICAN LIFE INSURANCE CO. |
22.50 | |
PIONEER CREDIT RECOVERY, INC. |
180.54 | |
Postalia |
10,000.00 | |
POSTMASTER |
5,000.00 | |
PRESORT FIRST CLASS, INC. |
574.01 | |
Protiviti (Allocated reimbursement to TMST) |
157,949.01 | |
Quinn Emmanuel (Allocated reimbursement to TMST) |
25,698.00 | |
RACO INDUSTRIES |
3,317.52 | |
RCC Adjustment |
1,739.90 | |
Reconciling Item |
-12,411.00 | |
ROSA RESENDE |
1,042.50 | |
SAFEGUARD PROPERTIES, INC. |
1,350.00 | |
SAINTS OCCUPATIONAL HEALTH NETWORK |
270.00 | |
SAMS CLUB |
2,841.76 | |
SAMUEL E. MEEK |
1,352.85 | |
SECONDARY MARKETING EXECUTIVE |
5,104.25 | |
SHRED-IT OKLAHOMA CITY |
6,426.90 | |
SPRINT |
6,988.15 | |
STANDLEY SYSTEMS |
836.22 | |
STEPHEN E. MEYER INC. |
1,050.00 | |
STEVEN RUSSELL |
130.28 | |
SUN LIFE & HEALTH INSURANCE CO. |
8,890.10 | |
SUZANNE K. BLOYED REAL ESTATE APPRAISALS |
525.00 | |
T E ALLEN APPRAISALS |
400.00 | |
TGS LASER SUPPLY & SUPPORT LTD. CO. |
15,853.49 | |
THE BRADY GROUP |
2,850.00 | |
THOMAS G. APEL |
2,504.63 | |
THOMPSON WEST |
24,509.25 | |
Tydings & Rosenberg (Allocated reimbursement to TMST) |
2,159.50 | |
UNITED PARCEL SERVICE |
23,902.57 | |
UNITED WAY GOLF TOURNAMENT |
500.00 | |
UNIVERSAL CREDIT SERVICES |
14,428.00 | |
Venable (Allocated reimbursement to TMST) |
100,548.49 | |
VISION SERVICE PLAN OF OKLAHOMA |
2,910.99 | |
WEBROOT SOFTWARE |
504.00 |
Monday, October 19, 2009 |
Page 3 of 4
ZEE MEDICAL SERVICE CO. |
163.03 | ||
ZONES, INC. |
22,637.64 | ||
Grand Total |
$ | 2,982,109.71 |
Monday, October 19, 2009 |
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