TMST, Inc. - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT OF TMST, INC., OCTOBER 1, 2009 TO OCTOBER 31, 2009

Attached files

file	filename
8-K - FORM 8-K - TMST, Inc.	d8k.htm
EX-99.2 - MONTHLY OPERATING REPORT OF ADFITECH, INC., OCTOBER 1, 2009 TO OCTOBER 31, 2009 - TMST, Inc.	dex992.htm

Exhibit 99.1


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., etal. (1)		CASE NUMBER:		09-17787

OFFICE OF THE UNITED STATES TRUSTEE - BALTIMORE DIVISION

MONTHLY OPERATING REPORT

CHAPTER 11

BUSINESS DEBTORS

Form 2-A

COVER SHEET AND QUESTIONNAIRE

For Period Ended October 31, 2009

Accounting Method: xAccrual 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 Disursements 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 (See Exhibit A)

x	¨	8. Bank Statement Reconciliations for all Bank Accounts (See Exhibit A)


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		(2)

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. (1)


Executed on:	11/19/2009	Print Name:	Joel I. Sher

		Signature:	/s/ Joel I. Sher

		Title:	Chapter 11 Trustee

(1)

Includes the following Debtors: TMST, Inc. f/k/a Thornburg Mortgage, Inc. (Case No. 09-17787), TMST Home Loans, Inc. f/k/a Thornburg Mortgage Home Loans, Inc. (Case No. 09-17791), TMST Hedging Strategies, Inc. f/k/a Thornburg Mortgage Hedging Strategies, Inc. (Case No. 09-17792), and TMST Acquisition Subsidiary, Inc. f/k/a Thornburg Acquisition Subsidiary, Inc. (Case No. 09-17790). The Adfitech, Inc. Monthly Operating Report is filed separately under Case No. 09-17788.

(2)	On October 30, 2009 the Chapter 11 Trustee opened a new bank account at New Mexico Bank & Trust for Interested Bidders in the Whole Loan Sale process to submit deposits. There was no activity in the account during the month of October and it is not included in the Cash Balance Summary or Exhibit A.

Rev. 4/2008

Page 1 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT (1)

For Period: 10/1/2009 to 10/31/2009


CASH FLOW SUMMARY	Current Month			Accumulated

1. Beginning Cash Balance	$	23,264,521	(2)	$	16,847,967	(2)


2. Cash Receipts
Operations		2,321,442			14,691,811
Sale of Assets		—			—
Loans/advances		—			—
Other		1,002	(3)		437,681


Total Cash Receipts	$	2,322,444		$	15,129,492


3. Cash Disbursements
Operations		1,498,652			4,727,968
Debt Service/Secured loan payment		—			—
Professional fees/U.S. Trustee fees		14,300			3,175,478
Other		—			—


Total Cash Disbursements	$	1,512,952		$	7,903,446


4. Net Cash Flow (Total Cash Receipts less
Total Cash Disbursements)		809,492			7,226,046


5 Ending Cash Balance (to Form 2-C)	$	24,074,013	(4)	$	24,074,013	(4)


CASH BALANCE SUMMARY		Bank Balance		Deposits In Transit		Outstanding Checks		Book Balance
Account Name/Number	Institution	Bank Balance		Deposits In Transit		Outstanding Checks		Book Balance

xxxxxxx2822	New Mexico Bank & Trust	$	23,601,575	$	—	$	47,783	$	23,553,792
xxxxxxx0805	J.P. Morgan		118,194		—		—		118,194
xxxxxxx1807	New Mexico Bank & Trust		5,510		—		—		5,510
xxxxxxx2954	New Mexico Bank & Trust		260,579		—		225		260,354
xxxxxxx2989	New Mexico Bank & Trust		35,177		—		—		35,177
xxxxxxx5856	New Mexico Bank & Trust		99,984		—		—		99,984
xxxxxxx9638	The Bank of New York Mellon		1,002		—				1,002
xxxxxxx9639	The Bank of New York Mellon (5)		—		—		—		—

TOTAL		$	24,122,021	$	—	$	48,008	$	24,074,013	(4)

(must agree with Ending Cash Balance above)
Restricted Cash
xxxxxxx212	Century Trust, LLP (5)	$	—	$	—	$	—	$	—

(1)

The term “cash” as used herein includes all forms of currency (e.g., checks, cash, money orders, etc.)

(2)

Accumulated beginning cash balance is the cash available at the commencement of the case.

Current month beginning cash balance equals the previous month’s ending balance.

(3)

Voided outstanding transaction.

(4)

Current Month, Accumulated, and Book cash balances should be the same.

(5)

Because these accounts have no balances and no activity, the Debtors do not currently receive monthly statements. As a result, no documentation for these accounts is included in Exhibit A.

Page 2 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 10/1/2009 to 10/31/2009


CASH DISBURSEMENTS DETAIL		Account No:		xxxxxxx2822

(attach additional sheets as necessary)


Date	Check No.	Payee	Description (Purpose)	Amount
10/1/2009	6954	TMST Employee	Payroll	$	139
10/1/2009	6955	TMST Employee	Payroll		1,973
10/1/2009	6956	TMST Employee	Payroll		519
10/1/2009	6957	TMST Employee	Payroll		593
10/1/2009	6958	TMST Employee	Payroll		33
10/1/2009	6959	TMST Employee	Payroll		1,039
10/1/2009	6960	TMST Employee	Payroll		116
10/1/2009	6961	TMST Employee	Payroll		3,094
10/1/2009	6962	TMST Employee	Payroll		550
10/1/2009	6963	TMST Employee	Payroll		54
10/1/2009	6964	TMST Employee	Payroll		18
10/1/2009	6965	TMST Employee	Payroll		2,298
10/1/2009	6966	TMST Employee	Payroll		1,246
10/1/2009	6967	TMST Employee	Payroll		439
10/1/2009	6968	TMST Employee	Payroll		47
10/1/2009	6969	TMST Employee	Payroll		1,936
10/1/2009	6970	TMST Employee	Payroll		994
10/1/2009	6971	TMST Employee	Payroll		559
10/1/2009	6972	TMST Employee	Payroll		345
10/1/2009	6973	TMST Employee	Payroll		1,059
10/1/2009	6974	TMST Employee	Payroll		680
10/1/2009	6975	TMST Employee	Payroll		731
10/1/2009	6976	TMST Employee	Payroll		715
10/1/2009	Bank Fee	New Mexico Bank&Trust	Wire fee		21
10/1/2009	Wire	ADP Financial Services	Payroll taxes 09/30		34,109
10/1/2009	2352	TMST Employee	Payroll		37,106
10/5/2009	6985	TMST Employee	Personal expense reimbursement		69
10/5/2009	6986	TMST Employee	Payroll (Replace lost check)		5,411
10/5/2009	6987	TMST Employee	Personal expense reimbursement		66
10/5/2009	6988	NM Regulation Commission	Payroll Taxes		138
10/5/2009	6989	Thornburg Investment Management	Postage		213
10/9/2009	6991	Iron Mountain	Document Storage		2,336
10/9/2009	6992	U.S. Trustee	BK court fees		13,650
10/9/2009	6993	RR Donnelley Receivables, Inc	EDGAR Filings		2,074
10/9/2009	6994	TMST Employee	Personal expense reimbursement		40
10/9/2009	6995	TMST Employee	Personal expense reimbursement		769
10/9/2009	6996	TMST Employee	Payroll		1,808
10/9/2009	6997	FedEx	Shipping		130
10/13/2009	Wire	ADP Financial Services	Payroll - Direct deposits		45,589
10/13/2009	Bank Fee	New Mexico Bank&Trust	Wire fee		21
10/15/2009	Wire	ADP Financial Services	Payroll taxes 10/15		50,164
10/15/2009	Bank Fee	New Mexico Bank&Trust	Wire fee		21
10/15/2009	2353	TMST Employee	Payroll		18,609
10/15/2009	2354	TMST Employee	Payroll		3,412
10/15/2009	2355	TMST Employee	Payroll		5,975
10/15/2009	2356	TMST Employee	Payroll		1,458
10/15/2009	2357	TMST Employee	Payroll		3,340
10/15/2009	2358	TMST Employee	Payroll		2,232
10/15/2009	2359	TMST Employee	Payroll		1,770
10/15/2009	2360	TMST Employee	Payroll		1,931
10/15/2009	2361	TMST Employee	Payroll		1,286
10/16/2009	Wire	Cenlar	Servicing Advance		1,160,228
10/16/2009	Bank Fee	New Mexico Bank&Trust	Wire fee		21
10/19/2009	6998	TMST Employee	Payroll		1,215
10/27/2009	Bank Fee	New Mexico Bank&Trust	Wire fee		21
10/27/2009	Wire	ADP Financial Services	Payroll taxes 10/30		23,577
10/28/2009	Wire	ADP Financial Services	Payroll - Direct deposits		36,452
10/28/2009	Bank Fee	New Mexico Bank&Trust	Wire fee		21
10/30/2009	2362	TMST Employee	Payroll		4,164
10/30/2009	2363	TMST Employee	Payroll		4,046
10/30/2009	2364	TMST Employee	Payroll		2,107
10/30/2009	2365	TMST Employee	Payroll		3,686
10/30/2009	2366	TMST Employee	Payroll		1,998

Page 3 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 10/1/2009 to 10/31/2009


CASH DISBURSEMENTS DETAIL		Account No:		xxxxxxx2822

(attach additional sheets as necessary)


Date	Check No.	Payee	Description (Purpose)	Amount
10/30/2009	2367	TMST Employee	Payroll		679
10/30/2009	6999	TMST Employee	Payroll		19,892


		Total Cash Disbursements		$	1,511,029	(1)

(1)

Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 4 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2009 to 10/31/2009


CASH RECEIPTS DETAIL		Account No:		xxxxxxx2822

(attach additional sheets as necessary)


Date	Payor	Description (Purpose)	Amount
10/5/2009	Cenlar	Investor Z43 P&I Remittance Sept 2009	$	4,459
10/5/2009	Cenlar	Investor P43 P&I Remittance Sept 2009		85,420
10/6/2009	Cenlar	Cenlar Subservicing Bill Sept 2009		698,663
10/7/2009	KPMG LLP	Refund retainer balance		303,811
10/7/2009	KPMG LLP	Refund retainer balance		6,011
10/20/2009	Cenlar	Servicing Advance		1,160,228
10/21/2009	LBNA as Trustee for Thornburg Mortgage	Whole Loan P&I Remittance Sept 2009		53,213
10/23/2009	Wells Fargo Bank	Credit Risk Advisor Fee		1,211
10/26/2009	Wells Fargo Bank	Reinvestment Income		324
10/26/2009	Wells Fargo Bank	Credit Risk Advisor Fee		532
10/27/2009	Deutsche Bank	Reinvestment Income		19


	Total Cash Receipts		$	2,313,891	(1)

(1)	Total for all accounts should agree with total cash receipts listed on Form 2-B, page 2

Page 5 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 10/1/2009 to 10/31/2009


CASH DISBURSEMENTS DETAIL		Account No:		xxxxxxx2954

(attach additional sheets as necessary)


Date	Check No.	Payee	Description (Purpose)	Amount
10/5/2009	15422	FedEX	Shipping	$	387
10/5/2009	15423	TMST Employee	Personal expense reimbursement		50
10/9/2009	15424	FedEX	Shipping		287
10/9/2009	15425	U.S. Trustee	BK court fees		650


		Total Cash Disbursements		$	1,374	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 6 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2009 to 10/31/2009


CASH RECEIPTS DETAIL		Account No:		xxxxxxx2954

(attach additional sheets as necessary)


Date	Payor	Description (Purpose)	Amount
10/22/2009	State of Louisiana	Business Tax Refund	$	3,678
10/22/2009	Aon Risk Services Inc of NM	Refund for cancelled bonds		1,221
10/29/2009	State of Wyoming	Refund SUI		82
10/29/2009	State of Massachusetts	Refund Tax Extension		44


	Total Cash Receipts		$	5,025	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 7 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2009 to 10/31/2009


CASH RECEIPTS DETAIL		Account No:		xxxxxxx0805

(attach additional sheets as necessary)


Date	Payor	Description (Purpose)	Amount
10/23/2009	Bank of America (Countrywide)	Credit Risk Advisor Fee	$	689
10/26/2009	US Bank	Trust Wire		790
10/26/2009	Citibank	Corporate Trust Fed Wire		1,045


	Total Cash Receipts		$	2,524	(1)

(1)	Total for all accounts should agree with total cash receipts listed on Form 2-B, page 2

Page 8 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 10/1/2009 to 10/31/2009


CASH DISBURSEMENTS DETAIL		Account No:		xxxxxxx2989

(attach additional sheets as necessary)


Date	Check No.	Payee	Description (Purpose)	Amount
10/9/2009	ACH	ADP Financial Services	Payroll processing	$	244
10/16/2009	ACH	ADP Financial Services	Payroll processing		203
10/23/2009	ACH	ADP Financial Services	Payroll processing		101


		Total Cash Disbursements		$	549	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 9 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2009 to 10/31/2009


CASH RECEIPTS DETAIL		Account No:		xxxxxxx1807

(attach additional sheets as necessary)


Date	Payor	Description (Purpose)	Amount
10/31/2009	New Mexico Bank & Trust	Interest Paid	$	2

		Total Cash Receipts	$	2	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 10 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-C

COMPARATIVE BALANCE SHEET

For Period Ended: October 31, 2009


		Current Month			Petition Date (1)
*ASSETS*
Current Assets:
Cash and Cash Equivalents (from Form 2-B)		$	24,074,013		$	16,848,967
Accounts Receivable (from Form 2-E)			12,871,417			9,403,326
Receivable from Officers, Employees, Affiliates (2)			—			—
Inventory			—			—
Other Current Assets (List):	Prepaid expenses & retainers		3,875,636			5,742,624

	Accrued interest receivable		30,820			47,878

Total Current Assets			40,851,886			32,042,795

Fixed Assets:
Land			—			—
Building			—			—
Equipment, Furniture and Fixtures			1,201,340			1,201,340

Total Fixed Assets			1,201,340			1,201,340

Less: Accumulated Depreciation			733,579			533,109

Net Fixed Assets			467,761			668,231

Other Assets (List):	Restricted cash		—			201,432,689

	Mortgage servicing rights		78,516,102			87,104,385

	Investment in subsidiaries		23,502,696			21,244,747

	Loans held for sale		8,324,813			8,359,404

	Deposits		3,605,000			300,000

TOTAL ASSETS		$	155,268,258		$	351,152,251


*LIABILITIES*
Post-petition Accounts Payable (from Form 2-E)		$	458,513		$	—
Post-petition Accrued Professional Fees (from Form 2-E)			5,015,323			—
Post-petition Taxes Payable (from Form 2-E)			—			—
Post-petition Notes Payable			—			—
Other Post-petition Payable(List):	Contingent obligations (3)		2,289,516			—

Total Post Petition Liabilities			7,763,352			—

Pre Petition Liabilities:
Secured Debt			—			—
Priority Debt			—			—
Unsecured Debt			3,460,432,623			3,664,896,742

Total Pre Petition Liabilities			3,460,432,623			3,664,896,742


TOTAL LIABILITIES			3,468,195,975			3,664,896,742


*OWNERS’ EQUITY*
Owner’s/Stockholder’s Equity			3,640,741,359			3,640,741,359
Retained Earnings - Prepetition (4)			(6,954,485,849	)		(6,954,485,849	)
Retained Earnings - Post-petition			816,773			—

TOTAL OWNERS’ EQUITY			(3,312,927,717	)		(3,313,744,490	)


TOTAL LIABILITIES AND OWNERS’ EQUITY		$	155,268,258		$	351,152,251

(1)	Petition date values are taken from the Debtors’ balance sheet as of the petition date or are the values listed on the Debtors’ schedules.

(2)	TMST, Inc. has requested reimbursement from SAF for damages incurred. No receivable has been recorded pending resolution with SAF.

(3)	Includes cash payments received that will require bankruptcy court ruling to resolve ownership issues.

(4)	Change in Prepetition Retained Earnings of ($425,927) is due to a prior period adjustment for April expenses.

Rev. 4/2008

Page 11 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-D

PROFIT AND LOSS STATEMENT

For Period From: October 1, 2009 to October 31, 2009


	Current Month			Accumulated Total (1)
Operating Revenue
Interest income	$	42,737		$	5,304,664
Mortgage servicing income		2,184,482			13,417,375


Net Operating Revenue		2,227,219			18,722,039


Total interest expense / (benefit) (2)		—			(1,195,076	)


Gross Profit		2,227,219			19,917,115


Operating Expenses
Officer Compensation		127,499			895,390
Selling, General and Administrative		1,735,563			16,039,699
Rents and Leases		21,017			518,262
Depreciation, Depletion and Amortization		33,412			200,472
Other (list):		—			—
		—			—

Total Operating Expenses		1,917,491			17,653,823


Operating Income / (Loss)		309,728			2,263,292


Non-Operating Income / (Expenses)
Gains / (Losses) on Liquidation of Assets		—			—
Earnings from subsidiaries		263,968			2,257,949
Other Non-Operating Income (3)		—			3,940,558

Net Non-Operating Income / (Expenses)		263,968			6,198,507


Reorganization Expenses
Legal and Professional Fees		1,547,325			7,543,829
Other Reorganization Expense		12,234			101,197

Total Reorganization Expenses		1,559,559			7,645,026


Net Income / (Loss) Before Income Taxes		(985,863	)		816,773


Federal and State Income Tax Expense / (Benefit)		—			—


NET INCOME / (LOSS)	$	(985,863	)	$	816,773

(1)	Accumulated Totals include all revenue and expenses since the petition date.

(2)	Accumulated total reflects amortization of derivatives.

(3)	Accumulated total includes a $3.9 million gain on cancellation of auction swaps agreements by CSFB and RBS as reported in each entity’s respective bankruptcy claim filings.

Rev. 4/2008

Page 12 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-E

SUPPORTING SCHEDULES

For Period: October 1, 2009 to October 31, 2009

POST PETITION TAXES PAYABLE SCHEDULE


	Beginning Balance		Amount Accrued		Amount Paid		Date Paid	Check Number	Ending Balance
Income Tax Withheld
Federal		18,777	$	—	$	18,777	10/1/2009	Wire	$	—
				25,007		25,007	10/15/2009	Wire		—
				10,597		10,597	10/27/2009	Wire		—

State		3,157		—		3,157	10/1/2009	Wire		—
				5,173		5,173	10/15/2009	Wire		—
				2,645		2,645	10/27/2009	Wire		—

FICA Tax Withheld		5,812		—		5,812	10/1/2009	Wire		—
				9,887		9,887	10/15/2009	Wire		—
				5,062		5,062	10/27/2009	Wire		—

Employer’s FICA Tax		5,812		—		5,812	10/1/2009	Wire		—
				9,887		9,887	10/15/2009	Wire		—
				5,062		5,062	10/27/2009	Wire		—


Unemployment Tax
Federal		67		—		67	10/1/2009	Wire		—
				—		—	10/15/2009	Wire		—
				—		—	10/27/2009	Wire		—

State		484		—		484	10/1/2009	Wire		—
				210		210	10/15/2009	Wire		—
				212		212	10/27/2009	Wire		—

Sales, Use & Excise Taxes		—		—		—				—

Property Taxes		—		—		—				—

Accrued Income Tax
Federal		—		—		—				—
State		—		—		—				—

TOTALS	$	34,109	$	73,741	$	107,850			$	—

INSURANCE SCHEDULE


	Carrier	Amount of Coverage		Expiration Date	Premiums Paid Through
Workers’ Compensation	Hartford Casualty Ins. Company	$	1,000,000/incident	7/1/2010	7/1/2010
General Liability	The Cincinnati Insurance Co.	$	1,000,000/incident	8/11/2010	8/11/2010
Property (Fire, Theft)	N/A
Vehicle	N/A
Employment Practices Liability	Lexington Insurance Company		3,000,000	3/17/2010	3/17/2010
Directors & Officers (Excess)	XL Specialty Insurance Co.		15,000,000	5/1/2010	5/1/2010
Directors & Officers (Primary)	U.S. Specialty Insurance Company		15,000,000	5/1/2010	5/1/2010
Trustee Surety Bond	Liberty Mutual Insurance Company		25,000,000	10/28/2010	10/28/2010

Rev. 4/2008

Page 13 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-E

SUPPORTING SCHEDULES

For Period: 10/1/2009 to 10/31/2009

ACCOUNTS RECEIVABLE AND POST PETITION PAYABLE AGING


Due	Accounts Receivable			Post Petition Accounts Payable

Under 30 days	$	1,951,213	(1)	$	1,437,111	(2)
30 to 60 days		46			1,917,918
61 to 90 days		147			1,217,512
91 to 120 days		—			329,111
Over 120 days		—			572,185
Unavailable		6,446,973	(3)

Total Post Petition		8,398,379

Pre Petition Amounts		4,473,038	(3)

Total Accounts Receivable		12,871,417

Less: Bad Debt Reserve		—

Net Accounts Receivable (to Form 2-C)	$	12,871,417

		Total Post Petition Accounts Payable		$	5,473,836

(1)	See Exhibit B for Accounts Receivable Aging

(2)	See Exhibit C for Accounts Payable Aging

(3)	Includes escrow and other non-P&I advances receivable from in excess of 3,300 mortgage holders. Aging information is not available.

SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS


		Month-end Retainer Balance		Current Month’s Accrual		Paid in Current Month		Date of Court Approval	Month-end Balance Due * (1)
Debtor’s Counsel		$	1,735,000	$	380,000	$	—		$	1,767,979
Debtor’s Special Counsel (2)			310,304		—		—			449,718
Debtor’s Financial Advisor			250,000		300,000		—			1,179,956
Creditors’ Committee’s Counsel			100,000		302,000		—			1,005,165
Unsecured Creditors’ Financial Advisor			—		155,000		—			551,456
Trustee’s Counsel			—		—		—			—
Other:	U.S. Trustee		—		—		14,300			—

Other:	Claims Agent		—		30,000		—			61,049

Total		$	2,395,304	$	1,167,000	$	14,300		$	5,015,323

*	Balance due to include fees and expenses incurred but not yet paid.

(1)	Includes estimates for amounts that may be due to professionals for which an invoice for services had not been received.

(2)	Orrick, Herrington & Sutcliffe LLP is no longer Debtors’ Special Counsel.

Rev. 4/2008

Page 14 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-E

SUPPORTING SCHEDULES

For Period: 10/1/2009 to 10/31/2009

SCHEDULE OF PAYMENTS AND TRANSFERS TO PRINCIPALS/EXECUTIVES**


Payee Name	Position	Nature of Payment	Amount
Anne-Drue Miller Anderson (1)	President, Treasurer	Wages	$	127,499

^**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.

(1) Ms. Anderson was paid for September services in the amount of $62,499 on October 1, 2009. Accrued wages of $60,000 reported on September MOR was based on an estimate.

Rev. 4/2008

Page 15 of 16


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-F

DISBURSEMENT SUMMARY

For the Month Ended: October 31, 2009

QUARTERLY DISBURSEMENT CALCULATION


		TMST, Inc., et al.
1.	Disbursements made in calendar quarter
	October 2009	$	1,512,952
	November 2009		—
	December 2009		—

	Quarterly Total	$	1,512,952

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 16 of 16

Exhibit B

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Accounts Receivable

As of October 31, 2009


Post Petition	Date	Amount		Under 30 days		30 to 60 days		61 to 90 days		91 to 120 days		Over 120 days		Unavailable
Reimbursement Simmons_FedEx (1)	8/7/2009	$	98	$	—	$	—	$	98	$	—	$	—	$	—
Reimbursement Simmons_FedEx (1)	8/14/2009		49		—		—		49		—		—		—
Reimbursement Simmons_FedEx (1)	9/11/2009		46		—		46		—		—		—		—
Adfitech, Estimated Professional Fees	10/22/2009		410,791		410,791		—		—		—		—		—
Thornburg Mortgage Advisory Co	10/15/2009		342,075		342,075		—		—		—		—		—
Cenlar, October 09 Servicing	10/31/2009		1,198,347		1,198,347		—		—		—		—		—
Borrower Escrow Advance Balance (2)	Various		5,376,835		—		—		—		—		—		5,376,835
Borrower Corporate Advance Balance (2)	Various		1,065,074		—		—		—		—		—		1,065,074
Borrower Inspection Fees (2)	Various		5,063		—		—		—		—		—		5,063


Total Post Petition Accounts Receivable		$	8,398,379	$	1,951,213	$	46	$	147	$	—	$	—	$	6,446,973


Pre Petition	Date	Amount
Adfitech	3/25/2009	$	1,000
Thomas G. Ennis, Premium Recapture	4/30/2009		6,888
Borrower Escrow Advance Balance (2)	Various		3,896,139
Borrower Corporate Advance Balance (2)	Various		531,799
Borrower 3rd Party Advance Balance (2)	Various		14,067
Borrower Inspection Fees (2)	Various		23,145


Total Pre Petition Accounts Receivable		$	4,473,038

(1)	Employee expenses appear to have been for personal matters.

(2)	Receivable amounts include balances due from multiple mortgage loan holders. Aging of the balances due is not available.

Page 1 of 1

Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of October 31, 2009


Vendor	Date	Amount		Under 30 days	30 to 60 days	61 to 90 days	91 to 120 days		Over 120 days
MIDCON Data Services LLC	05/01/09	2,341							2,341
5/15/09 Payroll due TMAC	05/15/09	40,290		—	—	—	—		40,290
J.H. Cohn LLP	05/31/09	32,673		—	—	—	—		32,673
Orrick,Herrington & Sutcliffe LLP	05/31/09	21,469		—	—	—	—		21,469
Protiviti, Inc.	05/31/09	54,694		—	—	—	—		54,694
Quinn Emanuel Urquhart Oliver & Hedges	05/31/09	60,021		—	—	—	—		60,021
Tydings & Rosenberg LLP	05/31/09	4,172		—	—	—	—		4,172
Venable LLP	05/31/09	78,950		—	—	—	—		78,950
MIDCON Data Services LLC	06/01/09	2,059		—	—	—	—		2,059
Atkinson & Thal, P.C.	06/08/09	118		—	—	—	—		118
Wilmington Trust Company	06/26/09	3,000		—	—	—	—		3,000
Wilmington Trust Company	06/29/09	4,000		—	—	—	—		4,000
J.H. Cohn LLP	06/30/09	32,707		—	—	—	—		32,707
Orrick,Herrington & Sutcliffe LLP	06/30/09	19,410		—	—	—	—		19,410
Protiviti, Inc.	06/30/09	74,319		—	—	—	—		74,319
Quinn Emanuel Urquhart Oliver & Hedges	06/30/09	64,284		—	—	—	—		64,284
Tydings & Rosenberg LLP	06/30/09	3,648		—	—	—	—		3,648
Venable LLP	06/30/09	67,958		—	—	—	—		67,958
Palmer, Lombardi & Donohue LLP	06/30/09	297		—	—	—	—		297
Thompson, Hickey, Cunningham, Clow, & April	06/30/09	29		—	—	—	—		29
Thompson, Hickey, Cunningham, Clow, & April	06/30/09	3,669		—	—	—	—		3,669
MIDCON Data Services LLC	07/01/09	2,077		—	—	—	—		2,077
Verizon	07/20/09	(264	)	—	—	—	(264	)	—
J.H. Cohn LLP	07/31/09	29,290		—	—	—	29,290		—
Orrick,Herrington & Sutcliffe LLP	07/31/09	127,078		—	—	—	127,078		—
Protiviti, Inc.	07/31/09	30,028		—	—	—	30,028		—
Quinn Emanuel Urquhart Oliver & Hedges	07/31/09	46,960		—	—	—	46,960		—
Tydings & Rosenberg LLP	07/31/09	2,739		—	—	—	2,739		—
Venable LLP	07/31/09	53,704		—	—	—	53,704		—
MIDCON Data Services LLC	08/01/09	2,059		—	—	—	2,059		—
Rubin Katz Law firm	08/07/09	1,233		—	—	1,233	—		—
CT Corporation System	08/24/09	14		—	—	14	—		—
J.H. Cohn LLP	08/31/09	145,906		—	—	145,906	—		—
Orrick,Herrington & Sutcliffe LLP	08/31/09	281,761		—	—	281,761	—		—
Protiviti, Inc.	08/31/09	139,866		—	—	139,866	—		—
Quinn Emanuel Urquhart Oliver & Hedges	08/31/09	196,259		—	—	196,259	—		—
Tydings & Rosenberg LLP	08/31/09	23,601		—	—	23,601	—		—

Page 1 of 3

Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of October 31, 2009


Vendor	Date	Amount	Under 30 days	30 to 60 days	61 to 90 days	91 to 120 days	Over 120 days
Venable LLP	08/31/09	428,872	—	—	428,872	—	—
Maryland Dept of Assessments	09/01/09	300	—	300	—	—	—
MIDCON Data Services LLC	09/01/09	2,059	—	2,059	—	—	—
Rubin Katz Law firm	09/08/09	436	—	436	—	—	—
Pepper Hamilton LLP	09/10/09	11,729	—	11,729	—	—	—
Pepper Hamilton LLP	09/10/09	2,272	—	2,272	—	—	—
Pepper Hamilton LLP	09/10/09	21,141	—	21,141	—	—	—
Pepper Hamilton LLP	09/10/09	20,303	—	20,303	—	—	—
Pepper Hamilton LLP	09/10/09	21,819	—	21,819	—	—	—
The Bank of New York Mellon	09/16/09	3	—	3	—	—	—
O’Melveny & Myers, LLP	09/28/09	13,628	—	13,628	—	—	—
J.H. Cohn LLP	09/30/09	155,881	—	155,881	—	—	—
Protiviti, Inc.	09/30/09	581,049	—	581,049	—	—	—
Quinn Emanuel Urquhart Oliver & Hedges	09/30/09	269,480	—	269,480	—	—	—
Tydings & Rosenberg LLP	09/30/09	32,001	—	32,001	—	—	—
Iron Mountain Information Management	09/30/09	624	—	624	—	—	—
Iron Mountain Information Management	09/30/09	3,241	—	3,241	—	—	—
Thornburg Mortgage Advisory Co	09/30/09	8,400	—	8,400	—	—	—
Venable LLP	09/30/09	758,495	—	758,495	—	—	—
American Stock Transfer & Trust	10/01/09	5,500	—	5,500	—	—	—
MIDCON Data Services LLC	10/01/09	2,059	—	2,059	—	—	—
The Carlisle Group, Inc.	10/01/09	7,500	—	7,500	—	—	—
Epiq Bankruptcy Solutions, LLC	10/09/09	31,049	31,049	—	—	—	—
FedEX	10/09/09	393	393	—	—	—	—
CSC	10/10/09	582	582	—	—	—	—
CSC	10/10/09	291	291	—	—	—	—
TMST Employee (Expense reimbursement)	10/12/09	1,910	1,910	—	—	—	—
Commonwealtrh of Massachusetts	10/13/09	125	125	—	—	—	—
Robert Half Finance & Accounting	10/13/09	1,454	1,454	—	—	—	—
Robert Half Finance & Accounting	10/13/09	3,089	3,089	—	—	—	—
J and J Technical Services, Inc.	10/15/09	3,758	3,758	—	—	—	—
Thornburg Mortgage Advisory Co	10/15/09	29,657	29,657	—	—	—	—
FedEX	10/16/09	324	324	—	—	—	—
RR Donnelley Receivables, Inc	10/16/09	816	816	—	—	—	—
SICORP, Inc.	10/16/09	5,140	5,140	—	—	—	—
TMST Employee (Expense reimbursement)	10/16/09	12	12	—	—	—	—
Pepper Hamilton LLP	10/19/09	6,623	6,623	—	—	—	—
Pepper Hamilton LLP	10/19/09	3,289	3,289	—	—	—	—

Page 2 of 3

Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of October 31, 2009


Vendor	Date	Amount		Under 30 days		30 to 60 days		61 to 90 days		91 to 120 days		Over 120 days
Pepper Hamilton LLP	10/19/09		6,953		6,953		-		-		-		-
Pepper Hamilton LLP	10/19/09		2,989		2,989		—		—		—		—
Pepper Hamilton LLP	10/19/09		6,304		6,304		—		—		—		—
TMST Employee (Expense reimbursement)	10/19/09		1,087		1,087		—		—		—		—
Louisiana Dept of Revenue	10/20/09		25		25		—		—		—		—
Robert Half Finance & Accounting	10/20/09		2,725		2,725		—		—		—		—
South Dakota Secretary of State	10/20/09		50		50		—		—		—		—
TMST Employee (Expense reimbursement)	10/20/09		3,311		3,311		—		—		—		—
Pandesa Corporation	10/22/09		1,350		1,350		—		—		—		—
FedEX	10/23/09		351		351		—		—		—		—
TMST Employee (Expense reimbursement)	10/23/09		1,985		1,985		—		—		—		—
TMST Employee (Expense reimbursement)	10/23/09		291		291		—		—		—		—
RR Donnelley Receivables, Inc	10/28/09		2,883		2,883		—		—		—		—
Russel-Massey and Company	10/28/09		62,500		62,500		—		—		—		—
TMST Employee (Expense reimbursement)	10/28/09		206		206		—		—		—		—
TMST Employee (Expense reimbursement)	10/28/09		634		634		—		—		—		—
FedEX	10/30/09		249		249		—		—		—		—
Epiq Bankruptcy Solutions, LLC	10/31/09		30,000		30,000		—		—		—		—
J.H. Cohn LLP	10/31/09		155,000		155,000		—		—		—		—
Protiviti, Inc.	10/31/09		300,000		300,000		—		—		—		—
Quinn Emanuel Urquhart Oliver & Hedges	10/31/09		270,000		270,000		—		—		—		—
Tydings & Rosenberg LLP	10/31/09		32,000		32,000		—		—		—		—
Venable LLP	10/31/09		380,000		380,000		—		—		—		—
Payroll Accrual	10/31/09		79,529		79,529		—		—		—		—
Thornburg Mortgage Advisory Co	10/31/09		6,460		6,460		—		—		—		—
RR Donnelley Receivables, Inc	10/31/09		606		606		—		—		—		—
RR Donnelley Receivables, Inc	10/31/09		1,112		1,112		—		—		—		—

			5,436,319		1,437,111		1,917,918		1,217,512		291,593		572,185

Potential obligations - Invoices under review	07/31/09		37,518		—		—		—		37,518		—


Post Petition Accounts Payable		$	5,473,836	$	1,437,111	$	1,917,918	$	1,217,512	$	329,111	$	572,185

NOTE: Includes estimates for amounts that may be due to ordinary course professionals for which an invoice for services had not been received.

Page 3 of 3

TMST, Inc. - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT OF TMST, INC., OCTOBER 1, 2009 TO OCTOBER 31, 2009 - November 24, 2009

Attached files