Attached files
| file | filename |
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| 8-K - FORM 8-K - Meruelo Maddux Properties, Inc. | form8k.htm |
| EX-99.1 - MONTHLY OPERATING REPORT FOR THE ONE MONTH ENDED OCTOBER 31, 2009 - Meruelo Maddux Properties, Inc. | exhibit99_1.htm |
Exhibit
99.2
DISCLOSURES
AND DISCLAIMERS REGARDING THE MONTHLY OPERATING REPORT OF
MERUELO MADDUX – 845 S.
FLOWER STREET, LLC AND MERUELO CHINATOWN, LLC
The
Monthly Operating Report filed by Meruelo Maddux – 845 S. Flower Street, LLC and
Meruelo Chinatown, LLC (collectively, the “Debtors”), which are both
subsidiaries of Meruelo Maddux Properties, Inc. (the “Company”), is limited in
scope, covers a limited time period and has been prepared by management of the
Debtors solely for the purpose of complying with reporting requirements of the
Office of the United States Trustee in the Central District of California, San
Fernando Valley Division, and the Bankruptcy Code. The financial information
contained in the Monthly Operating Report is unaudited and does not purport to
show the financial statements of any of the Debtors in accordance with
accounting principles generally accepted in the United States of America
(“GAAP”) and, therefore, may exclude items required by GAAP, such as certain
reclassifications, eliminations, accruals and disclosure items. The Company
cautions readers not to place undue reliance on the Monthly Operating Report.
The Monthly Operating Report may be subject to revision. The Monthly Operating
Report is in a format required by the Office of the United States Trustee in the
Central District of California, San Fernando Valley Division, and the Bankruptcy
Code and should not be used for investment purposes. The information in the
Monthly Operating Report should not be viewed as indicative of future
results.
While the
Debtors’ management has exercised its best efforts to ensure that the Monthly
Operating Report is accurate and complete by legal entity based on information
that was available at the time of preparation, inadvertent errors or omissions
may exist. The Debtors reserve the right to amend the Monthly Operating Report
from time to time as may be necessary or appropriate.
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I.
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Income
Statements
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a.
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Reporting Date.
All statements of operations information cover the period of October 1,
2009 through October 31, 2009 and is clearly identified as
such.
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b.
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Change in Accounting
Practice. Effective January 1, 2009, the development
activities were suspended at the Debtor’s Meruelo Chinatown development
project. As such, all costs related to this development project
are now being expensed, rather than
capitalized.
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II.
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Balance
Sheets
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a.
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Reporting
Date. All asset and liability information is reported as
of October 31, 2009 and are clearly identified as
such.
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b.
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Basis of
Presentation. For financial reporting purposes, the
Debtors, along with 54 affiliate entities that filed Chapter 11 petitions
on March 26 and 27, 2009, and certain of their affiliate entities that
have not filed Chapter 11 petitions under the Bankruptcy Code, prepare
consolidated financial statements that are filed with the U.S. Securities
and Exchange Commission (“SEC”) and audited on an annual
basis. Unlike the audited consolidated statements, the Balance
Sheets attached herein reflect only the assets and liabilities of each
Debtor and may not include certain eliminations or intercompany balances
for consolidating purposes. Accordingly, combining the assets
and liabilities set forth in the Balance Sheets would result in amounts
that could be different from financial information presented on a
consolidated basis in accordance with GAAP. Therefore, the
Balance Sheets do not purport to represent financial statements prepared
in accordance with GAAP nor is it intended to fully reconcile with the
financial statements filed by the Debtors with the
SEC. Inconsistencies should be interpreted and resolved in
favor of financial statements filed by the Debtors with the SEC and not on
the Monthly Operating Report.
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III.
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Default Rate
Interest
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a.
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The
filing of the Chapter 11 petitions may have given rise to claims by
lenders of defaults under our debt instruments and agreements. As a
result, our debt obligations may have become immediately payable. In our
Monthly Operating Report, we are accruing interest at the regular rate or
the rate without considering the impact of a default. In our financial
statements filed with the SEC, we are accruing interest at the default
interest rate from the bankruptcy filing
date.
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