CANAL Corp - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORTS

CANAL Corp - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORTS - February 17, 2010

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8-K - FORM 8-K - CANAL Corp	d8k.htm

Exhibit 99.1


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS

CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660

JUDGE: DOUGLAS O. TICE JR.

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

MONTHLY OPERATING REPORT

MONTH ENDING: January 4, 2010 To February 7, 2010

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7A) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:


/S/ J.P. CAUSEY JR.				EXECUTIVE VICE PRESIDENT
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY				TITLE

J.P. CAUSEY JR.				FEBRUARY 15, 2010
PRINTED NAME OF RESPONSIBLE PARTY				DATE

PREPARER:

/S/ KATHRYN L. TYLER				ASSISTANT CONTROLLER
ORIGINAL SIGNATURE OF PREPARER				TITLE

KATHRYN L. TYLER				FEBRUARY 15, 2010
PRINTED NAME OF PREPARER				DATE

Page 1 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-1 (1 of 2)

BALANCE SHEET


	12/29/2008			2/1/2009			3/1/2009			3/29/2009			4/30/2009			5/31/2009			6/28/2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,469,115		$	2,158,981		$	947,670		$	1,140,352		$	456,614		$	10,558,731		$	10,201,730
Accounts receivable¹		6,980,430			7,770,578			7,857,279			8,459,192			95,408,006			2,418,885			2,020,865
Inventories		3,838,065			3,664,000			3,660,000			3,685,000			—			—			—
Prepaid expenses and other current assets		828,719			669,773			1,624,976			1,425,984			931,506			720,545			665,871
Income taxes receivable		2,634,783			2,634,783			2,634,783			2,634,783			2,634,783			2,634,783			2,634,783

TOTAL CURRENT ASSETS		15,751,112			16,898,115			16,724,708			17,345,310			99,430,908			16,332,944			15,523,249

Gross property, plant and equipment:		30,875,645			30,875,761			31,368,761			31,368,761			1,355,325			1,355,325			1,355,325
Less accumulated depreciation		(18,281,155	)		(18,505,161	)		(18,730,176	)		(18,962,413	)		(1,193,804	)		(1,214,208	)		(1,234,610	)

Net property, plant and equipment		12,594,490			12,370,600			12,638,586			12,406,349			161,521			141,117			120,715

Investment²		609,958,833			609,452,228			609,452,228			608,877,754			4,722,402			4,026,322			3,401,392
Net Intercompany receivable^2,3		380,411,592			364,771,130			362,018,963			368,163,677			—			—			—
Other assets		48,850,022			45,911,887			43,305,421			42,914,089			32,126,393			31,835,864			31,868,923

TOTAL ASSETS		1,067,566,056			1,049,403,960			1,044,139,906			1,049,707,178			136,441,224			52,336,247			50,914,279


CURRENT LIABILITIES
Accounts payable		—			1,041,104			239,496			1,168,385			119,728			137,757			57,167
Accrued expenses		—			2,264,062			3,886,832			4,275,638			6,806,139			1,223,155			844,120


TOTAL CURRENT LIABILITIES		—			3,305,166			4,126,328			5,444,023			6,925,867			1,360,912			901,287


LIABILITIES NOT SUBJECT TO COMPROMISE		—			3,305,166			4,126,328			5,444,023			6,925,867			1,360,912			901,287

LIABILITIES SUBJECT TO COMPROMISE		610,078,052			596,985,915			598,863,077			599,519,013			491,973,646			436,785,319			439,742,743

STOCKHOLDERS’ EQUITY
Common stock		20,639,605			20,485,638			20,318,975			20,318,975			20,238,486			20,238,486			20,238,486
Additional paid-in capital		370,720,184			370,973,216			371,119,572			371,433,488			98,740,698			98,740,698			98,740,698
Accumulated other comprehensive income (loss)		(107,066,962	)		(105,822,347	)		(107,408,674	)		(107,252,262	)		(46,594,889	)		(46,320,554	)		(46,142,364	)
Retained earnings		173,195,177			163,476,372			157,120,627			160,243,942			(434,842,584	)		(458,468,614	)		(462,566,571	)

TOTAL STOCKHOLDERS’ EQUITY		457,488,004			449,112,878			441,150,500			444,744,142			(362,458,289	)		(385,809,984	)		(389,729,751	)


TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$	1,067,566,056		$	1,049,403,960		$	1,044,139,906		$	1,049,707,178		$	136,441,224		$	52,336,247		$	50,914,279

Accounts receivable include $3,461,235, $3,338,463, $3,291,694, $2,807,186, $2,418,885, and $2,020,865, of non trade receivables, deposits, advances and other miscellaneous receivables for January, February March, April, May, and June, respectively. April balance also reflects receivables of $92,608,820 related to the sale that closed April 30, 2009

2.	The Company sold substantially all of its operating business effective April 30, 2009 resulting in the elimination of all I/Co and investment balances in non-debtor subsidiaries

3.	For January, February and March, movement in intercompany receivable balance due to changes in foreign currency exchange rates and ordinary course intercompany transactions with non-debtor related entities, primarily Chesapeake PLC, UK Holdings Limited and Chesapeake Asia Pacific Ltd.

Page 2 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-1 (2 of 2)

BALANCE SHEET


	8/2/2009			8/30/2009			9/27/2009			11/1/2009			11/29/2009			1/3/2010			2/7/2010

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	9,034,187		$	7,980,143		$	7,895,167		$	9,705,754		$	9,413,470		$	9,230,342		$	8,599,090
Accounts receivable¹		2,635,896			2,628,282			2,521,364			2,007,300			2,005,971			1,995,027			2,002,252
Inventories		—			—			—			—			—			—			—
Prepaid expenses and other current assets		540,777			437,021			334,153			205,633			102,816			—			99,423
Income taxes receivable		2,634,783			2,634,783			2,634,783			2,634,783			2,634,783			2,634,783			2,634,783

TOTAL CURRENT ASSETS		14,845,643			13,680,229			13,385,467			14,553,470			14,157,040			13,860,152			13,335,548

Gross property, plant and equipment:		1,355,325			1,355,325			1,355,325			—			—			—			—
Less accumulated depreciation		(1,254,730	)		(1,274,849	)		(1,294,968	)		—			—			—			—

Net property, plant and equipment		100,595			80,476			60,357			—			—			—			—

Investment²		3,334,680			2,920,325			2,727,836			2,689,720			2,665,186			2,393,137			2,382,847
Net Intercompany receivable		—			—			—			—			—			—			—
Other assets		31,691,674			32,363,535			32,401,620			32,214,734			32,258,314			27,798,182			27,798,182

TOTAL ASSETS		49,972,592			49,044,565			48,575,280			49,457,924			49,080,540			44,051,471			43,516,577


CURRENT LIABILITIES
Accounts payable		9,349			19,353			—			25,935			36,619			245,600			2,216
Accrued expenses		598,934			476,946			482,631			940,117			826,343			628,557			665,034

TOTAL CURRENT LIABILITIES		608,283			496,299			482,631			966,052			862,961			874,157			667,250


LIABILITIES NOT SUBJECT TO COMPROMISE		608,283			496,299			482,631			966,052			862,961			874,157			667,250

LIABILITIES SUBJECT TO COMPROMISE		445,566,437			444,669,611			448,244,597			454,092,165			459,661,105			430,357,372			420,194,283

STOCKHOLDERS’ EQUITY
Common stock		20,238,486			20,238,486			20,238,486			20,238,486			20,238,486			20,238,486			20,238,486
Additional paid-in capital		98,740,698			98,740,698			98,740,698			98,740,698			98,740,698			98,740,698			98,740,698
Accumulated other comprehensive income (loss)		(45,885,665	)		(45,685,487	)		(45,496,043	)		(45,279,627	)		(45,105,162	)		(2,484,470	)		(2,484,470	)
Retained earnings		(469,295,647	)		(469,415,042	)		(473,635,089	)		(479,299,850	)		(485,317,548	)		(503,674,772	)		(493,839,670	)

TOTAL STOCKHOLDERS’ EQUITY		(396,202,128	)		(396,121,345	)		(400,151,948	)		(405,600,293	)		(411,443,526	)		(387,180,058	)		(377,344,956	)


TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$	49,972,592		$	49,044,565		$	48,575,280		$	49,457,924		$	49,080,540		$	44,051,471		$	43,516,577

1.	Accounts receivable include $2,635,896, $2,628,282, $2,521,364, $2,007,300, $2,005,971 and $1,995,027 of non trade receivables, deposits, advances and other miscellaneous receivables for July, August, September, October, November and December, respectively.

Page 3 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-2 (1 of 2)

INCOME STATEMENT


	2/1/2009			3/1/2009			3/29/2009			4/30/2009			5/31/2009			6/28/2009

Net sales	$	4,196,944		$	3,707,000		$	4,267,000		$	4,788,000		$	—		$	—
Cost of products sold		4,066,668			3,432,000			3,921,000			4,538,000			—			—
Selling, general and administrative expenses		1,998,580			1,953,517			2,204,262			2,242,369			592,107			493,181
Gain (loss) on foreign currency translation		(25,988	)		186,882			(76,697	)		(599,023	)		(20,594,933	)		(1,520,359	)
Other income (loss), net		(17,943	)		(20	)		(21,402	)		(6,048	)		(15,449	)		(465	)

Operating loss		(1,912,235	)		(1,491,655	)		(1,956,361	)		(2,597,440	)		(21,202,489	)		(2,014,005	)

Loss on divestiture		—			—			—			591,236,706			338,961			—
Reorganization costs and other financing costs		3,767,001			1,101,363			1,706,766			59,249			15,215			136,808
Interest expense, net		6,291,587			5,557,027			3,249,769			3,648,701			1,915,894			1,794,950


Loss from continuing operations		(11,970,822	)		(8,150,046	)		(6,912,897	)		(597,542,096	)		(23,472,559	)		(3,945,763	)

Intercompany income, net		(2,395,372	)		(1,939,622	)		(3,157,543	)		(2,588,980	)		—			—


Loss from continuing operations before taxes		(9,575,450	)		(6,210,424	)		(3,755,354	)		(594,953,116	)		(23,472,559	)		(3,945,763	)

Tax expense		7,880			9,014			8,861			1,861			3,654			3,654


Loss before discontinued operations		(9,583,330	)		(6,219,438	)		(3,764,215	)		(594,954,977	)		(23,476,213	)		(3,949,417	)

Loss (income) from discontinued operations, net of tax		136,752			136,752			(6,887,529	)		131,548			149,818			148,540


Net (loss) income	$	(9,720,082	)	$	(6,356,190	)	$	3,123,314		$	(595,086,525	)	$	(23,626,031	)	$	(4,097,957	)

Page 4 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-2 (2 of 2)

INCOME STATEMENT


	8/2/2009			8/30/2009			9/27/2009			11/1/2009			11/29/2009			1/3/2010			2/7/2010
Net sales	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Cost of products sold		—			—			—			—			—			—			—
Selling, general and administrative expenses		638,486			538,674			486,386			578,864			456,494			432,228			140,708
Gain (loss) on foreign currency translation		(3,601,719	)		2,872,317			(1,272,279	)		(4,571,436	)		(3,450,631	)		9,604,099			12,130,808
Other income (loss), net		(3,398	)		3,159			—			(46,071	)		2,258			1,366			—

Operating loss		(4,243,603)			2,336,802			(1,758,665)			(5,196,371)			(3,904,867)			9,173,237			11,990,100

Loss on divestiture		1,613			205			863			7,538			—			(363	)		—
Reorganization costs and other financing costs		77,436			69,843			75,780			(79,244	)		97,952			25,055,347			10,159
Interest expense, net		2,254,572			2,233,545			2,231,373			1,467,746			1,858,478			2,275,011			2,267,948


Loss from continuing operations		(6,577,224	)		33,209			(4,066,681	)		(6,592,411	)		(5,861,297	)		(18,156,758	)		9,711,993

Intercompany income, net		—			—			—			—			—			—			—


Loss from continuing operations before taxes		(6,577,224	)		33,209			(4,066,681	)		(6,592,411	)		(5,861,297	)		(18,156,758	)		9,711,993

Tax expense		3,291			3,290			3,290			3,324			3,324			3,324			(68,822	)


Loss before discontinued operations		(6,580,515	)		29,919			(4,069,971	)		(6,595,735	)		(5,864,621	)		(18,160,082	)		9,780,815

Loss (income) from discontinued operations, net of tax		148,561			149,315			150,076			(930,974	)		153,076			197,142			(54,287	)


Net (loss) income	$	(6,729,076	)	$	(119,396	)	$	(4,220,047	)	$	(5,664,761	)	$	(6,017,697	)	$	(18,357,224	)	$	9,835,102

Page 5 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-3 (1 of 2)

CASH RECEIPTS AND DISBURSEMENTS


	YTD¹
	2/1/2009			3/1/2009			3/29/2009			4/30/2009			5/31/2009			6/28/2009
Operating activities:
Net loss	$	(9,917,347	)	$	(16,273,537	)	$	(13,150,223	)	$	(608,236,748	)	$	(631,862,778	)	$	(635,960,735	)
Depreciation and amortization		369,015			729,029			1,096,266			1,475,836			1,496,240			1,516,642
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable, net		(414,551	)		(501,253	)		(1,103,165	)		(93,434,979	)		(445,858	)		(47,838	)
Inventories		135,000			139,000			114,000			516,000			516,000			516,000
Other assets		168,409			(786,794	)		(587,802	)		(286,324	)		(75,364	)		(20,689	)
Accounts payable and accrued expenses		(6,132,368	)		(1,310,385	)		2,480,427			2,362,951			(3,682,855	)		(1,999,876	)
Income taxes payable		—			—			—			—			—
Loss on Divestiture		—			—			—			681,379,250			606,471,427			606,471,427
Other		3,174,529			5,692,364			(995,003	)		138,179			522,947			2,107,827


Net cash provided by operating activities		(12,617,313	)		(12,311,575	)		(12,145,499	)		(16,085,835	)		(27,060,241	)		(27,417,242	)


Investing activities:
Purchases of property, plant and equipment		—			—			(493,000	)		(498,000	)		(498,000	)		(498,000	)
Divestitures		—			—			—			—			96,076,462			96,076,462
Proceeds from sales of property, plant and equipment		—			—			—			2,000			2,000			2,000
Other		—			—			—			—			—			—

Net cash (used in) provided by investing activities		—			—			(493,000	)		(496,000	)		95,580,462			95,580,462


Financing activities:
Net borrowings on credit lines		—			—			—			—			—			—
Payments on long-term debt		—			—			—			—			(75,000,000	)		(75,000,000	)
Proceeds from long-term debt		—			—			—			—			—			—
Intercompany		5,452,984			3,935,933			4,455,539			7,715,137			7,715,198			7,715,198
Other		—			—			—			—			—			—

Net cash provided by (used in) financing activities		5,452,984			3,935,933			4,455,539			7,715,137			(67,284,802	)		(67,284,802	)

Effect of foreign exchange rate changes on cash and cash equivalents		—			—			—			(134	)		(134	)		(134	)
Increase (decrease) in cash and cash equivalents		(7,164,330	)		(8,375,642	)		(8,182,960	)		(8,866,698	)		1,235,419			878,418
Cash and cash equivalents at beginning of Year		9,323,312			9,323,312			9,323,312			9,323,312			9,323,312			9,323,312


Cash and cash equivalents at end of Period	$	2,158,981		$	947,670		$	1,140,352		$	456,614		$	10,558,731		$	10,201,730

1.	Cashflow statement based on Company's fiscal period beginning 12/28/08, which includes net loss of $197,265 and net cash outflows of approximately $8 million from Dec 29, 2008, which were pre-petition.

Page 6 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-3 (2 of 2)

CASH RECEIPTS AND DISBURSEMENTS


	YTD¹
	8/2/2009			8/30/2009			9/27/2009			11/1/2009			11/29/2009			1/3/2010			2/7/2010
Operating activities:
Net loss	$	(642,689,811	)	$	(642,809,207	)	$	(647,029,253	)	$	(652,694,014	)	$	(658,711,712	)	$	(677,068,937	)	$	9,835,102
Depreciation and amortization		1,536,761			1,556,881			1,577,000			1,577,000			1,577,000			1,577,000			—

Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable, net		(662,869	)		(655,256	)		(544,033	)		(34,274	)		(32,944	)		(22,000	)		(7,225	)
Inventories		516,000			516,000			516,000			516,000			516,000			516,000			—
Other assets		104,405			208,161			311,029			439,549			542,366			645,182			(99,423	)
Accounts payable and accrued expenses		119,711			1,769,727			3,416,866			7,336,228			10,102,373			11,381,789			(198,076	)
Income taxes payable																				82,722
Loss on divestiture		606,471,427			606,471,427			606,471,427			606,471,427			606,471,427			606,471,427			—
Loss on sale of fixed assets											50,257			50,257			50,257			—
Other		6,019,591			3,303,438			5,557,159			8,414,509			11,269,631			28,050,552			(10,244,352	)


Net cash provided by operating activities		(28,584,785	)		(29,638,829	)		(29,723,805	)		(27,923,318	)		(28,215,602	)		(28,398,730	)		(631,252	)


Investing activities:
Purchases of property, plant and equipment		(498,000	)		(498,000	)		(498,000	)		(498,000	)		(498,000	)		(498,000	)		—
Divestitures		96,076,462			96,076,462			96,076,462			96,076,462			96,076,462			96,076,462			—
Proceeds from sales of property, plant and equipment		2,000			2,000			2,000			12,100			12,100			12,100			—
Other		—			—			—			—			—			—			—

Net cash (used in) provided by investing activities		95,580,462			95,580,462			95,580,462			95,590,562			95,590,562			95,590,562			—


Financing activities:
Net borrowings on credit lines		—			—			—			—			—			—			—
Payments on long-term debt		(75,000,000	)		(75,000,000	)		(75,000,000	)		(75,000,000	)		(75,000,000	)		(75,000,000	)		—
Proceeds from long-term debt		—			—			—			—			—			—			—
Intercompany		7,715,198			7,715,198			7,715,198			7,715,198			7,715,198			7,715,198			—
Other		—			—			—			—			—			—			—

Net cash provided by (used in) financing activities		(67,284,802	)		(67,284,802	)		(67,284,802	)		(67,284,802	)		(67,284,802	)		(67,284,802	)		—

Effect of foreign exchange rate changes on cash and cash equivalents		(134	)		(134	)		(134	)		(134	)		(134	)		(134	)		—
Increase (decrease) in cash and cash equivalents		(289,125	)		(1,343,169	)		(1,428,145	)		382,442			90,158			(92,970	)		(631,252	)
Cash and cash equivalents at beginning of Year		9,323,312			9,323,312			9,323,312			9,323,312			9,323,312			9,323,312			9,230,342


Cash and cash equivalents at end of Period	$	9,034,187		$	7,980,143		$	7,895,167		$	9,705,754		$	9,413,470		$	9,230,342		$	8,599,090

1.	Cashflow statement for fiscal 2009 based on Company's fiscal period beginning 12/28/08, which includes net loss of $197,265 and net cash outflows of approximately $8 million from Dec 29, 2008, which were pre-petition.

Page 7 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-4


		SCHEDULE	MONTH		MONTH		MONTH			MONTH
ACCOUNTS RECEIVABLE AGING¹		AMOUNT	JANUARY 2009		FEBRUARY 2009		MARCH 2009			APRIL 2009
1.	0-30		$	3,368,106	$	3,387,728	$	4,728,441		$	—
2.	31-60			643,867		1,103,581		433,694			—
3.	61-90			185,241		27,507		(32,144	)		—
4.	91+			112,128				37,507			—
5.	TOTAL ACCOUNTS RECEIVABLE		$	4,309,343	$	4,518,816	$	5,167,498		$	—
6.	AMOUNT CONSIDERED UNCOLLECTIBLE			—		—
7.	ACCOUNTS RECEIVABLE (NET)		$	4,309,343	$	4,518,816	$	5,167,498		$	—

1.	Does not include deposits/advances which are included in the balance sheet and miscellaneous receivables not recorded under the AR sub ledger. For April does not include receivable for the proceeds from the sale on 4/30/2009. Following the sale on 4/30/2009 the debtors have no trade receivables.


AGING OF POSTPETITION TAXES AND PAYABLES							MONTH: 1/4/10-2/7/10

TAXES PAYABLE		0-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
1.	FEDERAL	$	—	$	—	$	—	$	—	$	—
2.	STATE		—		—		—		—		—
3.	LOCAL		—		—		—		—		—
4.	OTHER (ATTACH LIST)		—		—		—		—		—
5.	TOTAL TAXES PAYABLE	$	—	$	—	$	—	$	—	$	—

6.	ACCOUNTS PAYABLE	$	2,216	$	—	$	—	$	—	$	2,216


STATUS OF POSTPETITION TAXES					MONTH: 1/4/10-2/7/10

FEDERAL		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ OR ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
1.	WITHHOLDING**	$	—	$	27,953	$	27,953		—
2.	FICA-EMPLOYEE**		—		5,014		5,014		—
3.	FICA-EMPLOYER**		—		5,014		5,014		—
4.	UNEMPLOYMENT		—		168		168		—
5.	INCOME		—		—		—		—
6.	OTHER (ATTACH LIST)		—		—		—		—
7.	TOTAL FEDERAL TAXES	$	—	$	38,149	$	38,149	$	—
STATE AND LOCAL
8.	WITHHOLDING	$	—	$	3,621	$	3,621		—
9.	SALES		—		—		—		—
10.	EXCISE		—		—		—		—
11.	UNEMPLOYMENT		—		691		691		—
12.	REAL PROPERTY		—		—		—		—
13.	PERSONAL PROPERTY		—		—		—		—
14.	OTHER		—		—		—		—
15.	TOTAL STATE & LOCAL	$	—	$	4,312	$	4,312	$	—
16.	TOTAL TAXES	$	—	$	42,461	$	42,461	$	—

*	The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

**	Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit.

Page 8 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-5

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

MONTH: 1/4/10-2/7/10

BANK RECONCILIATIONS


A. B. C.	BANK: ACCOUNT NUMBER: PURPOSE (TYPE):		Wachovia 2000044344937 Money Market	Wachovia 2000044344953 Money Market		Wachovia 2000049760707 Money Market		Wachovia 2000042096355 Deposit/Wdrwl			Wachovia 2000042096368 Deposit/Wdrwl		Wachovia 2000028428497 Deposit/Wdrwl		TOTAL
1.		BALANCE PER BANK STATEMENT	$5,078,522	$	1,213,254	$	1,327,797	$	262,883		$	499,988	$	5,617	$	8,388,061
2.		ADD: TOTAL DEPOSITS NOT CREDITED					207,780		14,097							221,877
3.		SUBTRACT: OUTSTANDING CHECKS							(11,134	)						(11,134	)
4.		OTHER RECONCILING ITEMS							(95	)						(95	)
5.		MONTH END BALANCE PER BOOKS	5,078,522		1,213,254		1,535,577		265,751			499,988		5,617		8,598,709
6.		NUMBER OF LAST CHECK WRITTEN	N/A		N/A		N/A		N/A			N/A		N/A		N/A

INVESTMENT ACCOUNTS


BANK, ACCOUNT NAME & NUMBER		DATE OF PURCHASE	TYPE OF INSTRUMENT	PURCHASE PRICE	CURRENT VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS					—

CASH

12.	CURRENCY ON HAND				$	381

13.	TOTAL CASH—END OF MONTH				$	8,599,090

Page 9 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-6


CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660		MONTH:		1/4/10-2/7/10

PAYMENTS TO INSIDERS AND PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS


NAME		TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.		See Appendix A
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	—	$	—

PROFESSIONALS


NAME		DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1.	Alvarez & Marsal						$	637,635
2.	FTI Consulting							61,845
3.	Goldman Sachs							4,142,218
4.	Gordian Group LLC							482,214
5.	Greenberg Traurig, LLP	2/5/2010		2,667				1,139,555		14,620
6.	Hammonds							117,048
7.	Hunton & Williams	12/31/2010		35,491		35,491		2,233,664		120,255
8.	Ivins, Phillips, & Barker	1/4/2010		212,775		212,775		606,735		169,322
9.	Kekst & Company							7,513
10.	Kurtzman Carson Consultants					10,002		464,447		10,000
11.	Lowenstein & Sandler PC							25,176		1,327
12.	Tavenner & Beran							31,456		33,464
13.	Quarles & Brady **	11/12/09,1/21/2010		811,601		109,913		2,064,433		820,132
	TOTAL PAYMENTS TO PROFESSIONALS		$	1,062,534	$	368,181	$	12,013,938	$	1,169,120

*	INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED. INCURRED FEES ARE MANAGEMENT ESTIMATES.

**	Amount approved but not paid by Canal Corporation ($701,688) paid by insurance

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS


NAME OF CREDITOR		SCHEDULED MONTHLY PAYMENTS DUE		AMOUNTS PAID DURING MONTH		TOTAL UNPAID POSTPETITION
2.	James Center Property LLC		3,000		3,000		—
3.	Ikon Leasing		747		747		—
3.	Lanier Parking Solutions		422		390		32
	TOTAL	$	4,169	$	4,137	$	32

Page 10 of 14


CASE NAME: CANAL CORPORATION		APPENDIX A (1 of 2)

PAYMENTS TO INSIDERS AND PROFESSIONALS

MONTH: 1/4/10-2/7/10

INSIDERS


			2009
NAME		TYPE OF PAYMENT	Jan Amount Paid1		Feb Amount Paid		March Amount Paid		April Amount Paid		May Amount Paid		June Amount Paid
1.	Alvarez & Marsal	Professional	$	—	$	—	$	279,364	$	186,116	$	134,882	$	24,222
2.	Buchan, Brian J	BOD Fees		1,260		—		3,780		5,600		1,269		2,585
3.	Causey Jr, John Paul	Payroll		36,500		24,333		24,333		24,333		—		—
4.	Causey Jr, John Paul	Expense Reimb		—		267		1,719		45		202		555
5.	Decaluwe, Rafael C	BOD Fees		4,520		7,322		3,480		9,096		1,577		4,370
6.	Fell, Sir David	BOD Fees		9,968		5,626		1,104		23,770		1,200		—
7.	Formacek, Candace C.	Payroll		23,125		15,417		15,417		15,417		—		—
8.	Formacek, Candace C.	Expense Reimb		—		521		—		2,351		33		—
9.	Fowden, Jerry	BOD Fees		1,260		—		—		5,600		1,260		—
10.	FTI Consulting	Professional		—		—		61,845		—		—		—
11.	Goldman Sachs	Professional		—		—		—		—		4,142,218		—
12.	Gordian Group	Professional		—		—		65,584		85,597		127,184		85,314
13.	Greenberg Traurig	Professional		—		—		329,162		219,314		454,315		45,432
14.	Hammonds LLP	Professional		—		—		44,502		27,730		27,999		14,443
15.	Hellyar, Mary Jane	BOD Fees		1,800		2,744		35		8,000		1,800		—
16.	Henderson, Thomas	Expense Reimb		1,151		1,766		4,087		2,654		—		—
17.	Henderson, Thomas M	Payroll		25,000		16,667		16,667		16,667		—		—
18.	Henfling, Robin	Payroll		33,086		20,433		20,433		20,433		—		—
19.	Henfling, Robin	Expense Reimb		—		1,895		4,758		1,577		—		—
20.	Hockett, Vincent W.	Payroll		33,125		22,083		22,083		22,083		—		—
21.	Hockett, Vincent W.	Expense Reimb		—		50		2,405		—		—		—
22.	Hunton & Williams LLP	Professional		—		—		751,574		—		619,558		293,537
23.	Ivins, Phillips & Baker	Professional		—		15,934		—		18,538		7,987		15,657
24.	Kekst & Company	Professional		5,263		—		1,550		700		—		—
25.	Kohut, Andrew J	Payroll		71,250		44,958		48,285		47,500		—		—
26.	Kohut, Andrew J	Expense Reimb		290		—		743		155		—		—
27.	Kohut, Andrew J	BOD Fees
28.	Lowenstein Sandler PC	Professional		—		—		—		11,528		9,898		—
29.	Kurtzman Carson Consultants	Professional		—		32,668		131,522		76,938		61,434		46,827
30.	McKeough, John	Expense Reimb		5,961		3,982		2,391		3,696		—		—
31.	Mckeough, John P.	Payroll		22,548		14,583		14,583		14,583		—		—
32.	Mostrom, Joel K.	Payroll		42,500		29,078		28,333		28,333		—		—
33.	Mostrom, Joel K.	Expense Reimb		—		1,120		461		—		281		—
34.	Naftzger, Christopher	Payroll		22,625		15,083		15,083		15,083		9,201		—
35.	Naftzger, Christopher	Expense Reimb		—		1,571		—		1,070		30		—
36.	Petit, Henri	BOD Fees		1,260		2,520		—		5,600		1,260		562
37.	Quarles & Brady	Professional								483,089		337,422		—
38.	Rosenblum, DR. John W.	BOD Fees		5,400		7,200		—		11,300		1,800		—
39.	Swade, Terry A.	Payroll		12,875		8,583		8,583		8,583		—		—
40.	Swade, Terry A.	Expense Reimb		—		—		490		—		—		—
41.	Tavenner & Beran	Professional
42.	Thelander, Beverly L.	BOD Fees / Exp		5,400		7,200		2,256		11,300		1,800		—
43.	Turley, Troy	Expense Reimb		1,020		1,803		3,272		5,206		—		—
44.	Turley, Troy L.	Payroll		22,953		12,533		12,533		12,533		—		—
45.	Winter, David A	Payroll		18,887		12,592		12,592		12,592		15,740		—
46.	Winter, David A	Expense Reimb		117		—		64		—		25		45
	TOTAL PAYMENTS TO INSIDERS		$	409,146	$	330,533	$	1,935,076	$	1,444,713	$	5,960,374	$	533,549

1.	Includes 12/31/08, 1/15/09 ad 1/31/09 payrolls.

Page 11 of 14


CASE NAME: CANAL CORPORATION		APPENDIX A (2 of 2)

PAYMENTS TO INSIDERS AND PROFESSIONALS

MONTH: 1/4/10-2/7/10

INSIDERS


			2009												2010
	NAME	TYPE OF PAYMENT	July Amount Paid		Aug Amount Paid		Sept Amount Paid		Oct Amount Paid		Nov Amount Paid		Dec Amount Paid		Jan Amount Paid		TOTAL PAID TO DATE
1.	Alvarez & Marsal	Professional	$	—	$	13,052	$	—	$	—	$	—	$	—	$	—		637,636
2.	Buchan, Brian J	BOD Fees		—		—		—		—		—		—		—		14,494
3.	Causey Jr, John Paul	Payroll		24,333		24,333		24,333		24,333		24,333		24,333		24,333		279,831
4.	Causey Jr, John Paul	Expense Reimb		—		—		765		1,825		2,864		—		—		8,241
5.	Decaluwe, Rafael C	BOD Fees		—		—		—		—		—		—		—		30,365
6.	Fell, Sir David	BOD Fees		26,463		—		—		26,818		—		1,297		25,948		122,194
7.	Formacek, Candace C.	Payroll		—		—		—		—		—		—		—		69,375
8.	Formacek, Candace C.	Expense Reimb		—		—		—		—		—		—		—		2,905
9.	Fowden, Jerry	BOD Fees		2,585		—		—		—		—		—		—		10,705
10.	FTI Consulting	Professional		—		—		—		—		—		—		—		61,845
11.	Goldman Sachs	Professional		—		—		—		—		—		—		—		4,142,218
12.	Gordian Group	Professional		85,202		33,333		—		—		—		—		—		482,214
13.	Greenberg Traurig	Professional		19,297		21,989		11,902		10,071		—		28,073		—		1,139,555
14.	Hammonds LLP	Professional		—		2,374		—		—		—		—		—		117,048
15.	Hellyar, Mary Jane	BOD Fees		3,692		—		—		—		—		—		—		18,071
16.	Henderson, Thomas	Expense Reimb		—		—		—		—		—		—		—		9,658
17.	Henderson, Thomas M	Payroll		—		—		—		—		—		—		—		75,000
18.	Henfling, Robin	Payroll		—		—		—		—		—		—		—		94,386
19.	Henfling, Robin	Expense Reimb		—		—		—		—		—		—		—		8,231
20.	Hockett, Vincent W.	Payroll		—		—		—		—		—		—		—		99,375
21.	Hockett, Vincent W.	Expense Reimb		—		—		—		—		—		—		—		2,455
22.	Hunton & Williams LLP	Professional		136,623		158,206		73,364		50,328		41,983		73,000		35,491		2,233,665
23.	Ivins, Phillips & Baker	Professional		43,544		19,943		—		24,093		248,264		—		212,775		606,735
24.	Kekst & Company	Professional		—		—		—		—		—		—		—		7,513
25.	Kohut, Andrew J	Payroll		—		—		—		—		—		—		—		211,993
26.	Kohut, Andrew J	Expense Reimb		—		—		—		—		—		—		—		1,189
27.	Kohut, Andrew J	BOD Fees								9,800		—		1,800		8,000		19,600
28.	Lowenstein Sandler PC	Professional		—		3,750		—		—		—		—		—		25,176
29.	Kurtzman Carson Consultants	Professional		40,648		—		18,252		19,717		9,134		17,305		10,002		464,447
30.	McKeough, John	Expense Reimb		—		—		—		—		—		—		—		16,030
31.	Mckeough, John P.	Payroll		—		—		—		—		—		—		—		66,298
32.	Mostrom, Joel K.	Payroll		—		—		—		—		—		—		—		128,244
33.	Mostrom, Joel K.	Expense Reimb		—		—		—		—		—		—		—		1,862
34.	Naftzger, Christopher	Payroll		—		—		—		—		—		—		—		77,076
35.	Naftzger, Christopher	Expense Reimb		—		—		—		—		—		—		—		2,671
36.	Petit, Henri	BOD Fees		6,178		—		—		7,910		—		1,260		6,650		33,200
37.	Quarles & Brady	Professional		624,250		—		509,759		—		—		—		109,913		2,064,433
38.	Rosenblum, DR. John W.	BOD Fees		9,500		—		—		11,300		—		1,800		9,500		57,800
39.	Swade, Terry A.	Payroll		—		—		—		—		—		—		—		38,625
40.	Swade, Terry A.	Expense Reimb		—		—		—		—		—		—		—		490
41.	Tavenner & Beran	Professional								24,278		—		7,178		—		31,456
42.	Thelander, Beverly L.	BOD Fees / Exp		10,067		—		—		12,300		—		1,800		10,500		62,623
43.	Turley, Troy	Expense Reimb		—		—		—		—		—		—		—		11,302
44.	Turley, Troy L.	Payroll		—		—		—		—		—		—		—		60,553
45.	Winter, David A	Payroll		—		—		—		—		—		—		—		72,402
46.	Winter, David A	Expense Reimb		—		—		—		—		—		—		—		251
	TOTAL PAYMENTS
	TO INSIDERS		$	1,032,381	$	276,980	$	638,375	$	222,773	$	326,578	$	157,846	$	453,112	$	13,721,435

Page 12 of 14


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-7


CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660		MONTH:		1/4/10-2/7/10

QUESTIONNAIRE


		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “YES,” PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

Page 13 of 14


CASE NAME: CHESAPEAKE CORPORATION		ACCRUAL BASIS-7a


CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660		MONTH:		1/4/10-2/7/10

INSURANCE

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS “NO,” OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

MONTH ENDING: January 4, 2010 To February 7, 2010

INSURANCE SCHEDULE


Type	Carrier/Agent	Period Covered	Payment Amount		Frequency
General Liability	Century Surety Company	4/15/09-4/15/10	$	6,372	Paid at Inception
General Liability	Century Surety Company	4/15/09-4/15/10	$	1,943	Paid at Inception
Commercial Property	The Harford	4/24/09-4/24/10	$	5,999	Paid at Inception
Primary Directors & Officers Liability Insurance	National Union Fire Insurance Company of Pittsburgh (AIG)	1/1/10 - 1/1/11	$	50,000	Paid at Inception
Excess Directors and Officers Liability	Ace American Insurance Company	1/1/10 - 1/1/11	$	25,000	Paid at Inception
Directors and Officers Liability Excess DIC Policy	Ace American Insurance Company	1/1/10 - 1/1/11	$	20,000	Paid at Inception
Fiduciary Liability	National Union Fire Insurance Company of Pittsburgh (AIG)	1/1/10 - 1/1/11	$	15,000	Paid at Inception
Employed Lawyers Liability (policy period amendment)	American International Specialty Lines Insurance Company	1/1/10 - 1/1/14			Awaiting invoice for $16,385
US Workers Compensation	Twin City Fire Insurance Company	5/1/09-5/1/10	$	1,034	Paid at Inception
Natural Resources Liability and Clean-Up	American International Specialty Lines Insurance Company	12/31/00 - 12/31/20	$	6,500,000	Paid at Inception

Page 14 of 14

ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?

ARE ALL PREMIUM PAYMENTS PAID CURRENT?

PLEASE ITEMIZE POLICIES BELOW.