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

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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: August 9, 2010 To September 5, 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.				SEPTEMBER 27, 2010
PRINTED NAME OF RESPONSIBLE PARTY				DATE

PREPARER:

/s/ KATHRYN L. TYLER				CONTROLLER
ORIGINAL SIGNATURE OF PREPARER				TITLE

KATHRYN L. TYLER				SEPTEMBER 27, 2010
PRINTED NAME OF PREPARER				DATE

Page 1 of 11


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-1

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

BALANCE SHEET


	7/4/2010			8/8/2010			9/5/2010

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	7,786,999		$	7,518,857		$	7,437,286
Accounts receivable ¹		1,811,429			1,686,429			1,561,429
Inventories		—			—			—
Prepaid expenses and other current assets		79,867			67,752			57,984
Income taxes receivable		2,634,783			2,634,783			2,634,783

TOTAL CURRENT ASSETS		12,313,078			11,907,821			11,691,482

Gross property, plant and equipment:		—			—			—
Less accumulated depreciation		—			—			—

Net property, plant and equipment		—			—			—

Investment		2,179,878			2,147,983			1,991,864
Net Intercompany receivable		—			—			—
Other assets		27,798,182			27,798,182			27,798,182

TOTAL ASSETS		42,291,138			41,853,986			41,481,528


CURRENT LIABILITIES
Accounts payable		22,691			3,669			3,717
Accrued expenses		148,242			115,560			117,820

TOTAL CURRENT LIABILITIES		170,933			119,229			121,537


LIABILITIES NOT SUBJECT TO COMPROMISE		170,933			119,229			121,537

LIABILITIES SUBJECT TO COMPROMISE²		420,506,070			420,050,867			420,027,633

STOCKHOLDERS’ EQUITY
Common stock		20,238,486			20,238,486			20,238,486
Additional paid-in capital		98,740,698			98,740,698			98,740,698
Accumulated other comprehensive income (loss)		(2,484,470	)		(2,484,470	)		(2,484,470	)
Retained earnings		(494,880,579	)		(494,810,824	)		(495,162,356	)

TOTAL STOCKHOLDERS’ EQUITY		(378,385,865	)		(378,316,110	)		(378,667,642	)


TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$	42,291,138		$	41,853,986		$	41,481,528

1.	Accounts receivable include $1,811,429, $1,686,429 and $1,561,429 of non trade receivables, deposits, advances and other miscellaneous receivables for June, July, and August, respectively.

Beginning with the period ended 3/7/2010 the company is no longer accruing interest on its pre-petition debt. In addition, pre-petition debt denominated in foreign currencies is no longer being revalued for changes in foreign exchange rates. Pre-petition debt and accrued interest in GBP is valued at 1.5667 GBP to 1 USD and Pre-petition debt and accrued interest in Euros is valued at 1.3683 Euro to 1 USD.

Page 2 of 11


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-2

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

INCOME STATEMENT


	7/4/2010			8/8/2010			9/5/2010

Net sales	$	—		$	—		$	—
Cost of products sold		—			—			—
Selling, general and administrative expenses		47,539			50,776			40,629
Gain (loss) on foreign currency translation¹		—			—			—
Other income (loss), net		30,874			45,644			—

Operating loss		(16,665	)		(5,132	)		(40,629	)

Loss on divestiture		—			—			—
Reorganization costs and other financing costs		38,278			(24,431	)		150,630
Interest expense, net¹		(2,738	)		(2,329	)		(2,449	)

Loss from continuing operations		(52,205	)		21,628			(188,810	)

Intercompany income, net		—			—			—

Loss from continuing operations before taxes		(52,205	)		21,628			(188,810	)

Tax expense		3,213			3,245			3,245

Loss before discontinued operations		(55,418	)		18,383			(192,055	)

Loss (income) from discontinued operations, net of tax		156,698			(51,372	)		159,477

Net (loss) income	$	(212,116	)	$	69,755		$	(351,532	)

1.	Beginning with the period ended 3/7/2010 the company is no longer accruing interest on its pre-petition debt. In addition, pre-petition debt denominated in foreign currencies is no longer being revalued for changes in foreign exchange rates.

Page 3 of 11


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-3

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

CASH RECEIPTS AND DISBURSEMENTS


	7/4/2010			8/8/2010			9/5/2010

Operating activities:
Net loss	$	8,794,255		$	8,864,010		$	8,512,478
Depreciation and amortization		—			—			—
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable, net		183,596			308,597			433,598
Inventories		—			—			—
Other assets		(79,867	)		(67,752	)		(57,984	)
Accounts payable and accrued expenses		(677,758	)		(729,462	)		(727,155	)
Income taxes payable		871,823			1,033,696			1,196,418
Loss on divestiture		—			—			—
Loss on sale of fixed assets		—			—			—
Other		(10,535,392	)		(11,120,574	)		(11,150,410	)

Net cash provided by operating activities		(1,443,343	)		(1,711,485	)		(1,793,056	)


Investing activities:
Purchases of property, plant and equipment		—			—			—
Divestitures		—			—			—
Proceeds from sales of property, plant and equipment		—			—			—
Other		—			—			—

Net cash (used in) provided by investing activities		—			—			—


Financing activities:
Net borrowings on credit lines		—			—			—
Payments on long-term debt		—			—			—
Proceeds from long-term debt		—			—			—
Intercompany		—			—			—
Other		—			—			—

Net cash provided by (used in) financing activities		—			—			—


Effect of foreign exchange rate changes on cash and cash equivalents		—			—			—

Increase (decrease) in cash and cash equivalents		(1,443,343	)		(1,711,485	)		(1,793,056	)

Cash and cash equivalents at beginning of Year		9,230,342			9,230,342			9,230,342

Cash and cash equivalents at end of Period	$	7,786,999		$	7,518,857		$	7,437,286

Page 4 of 11


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-4

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


ACCOUNTS RECEIVABLE AGING¹	SCHEDULE AMOUNT	MONTH		MONTH		MONTH
1. 0-30		$	—	$	—	$	—
2. 31-60			—		—		—
3. 61-90			—		—		—
4. 91+			—		—		—

5. TOTAL ACCOUNTS RECEIVABLE		$	—	$	—	$	—

6. AMOUNT CONSIDERED UNCOLLECTIBLE

7. ACCOUNTS RECEIVABLE (NET)		$	—	$	—	$	—

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


AGING OF POSTPETITION TAXES AND PAYABLES		MONTH:		8/9/10-9/5/10


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	$	3,717	$	—	$	—	$	—	$	3,717


STATUS OF POSTPETITION TAXES				MONTH:		8/9/10-9/5/10


FEDERAL	BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ OR ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
1. WITHHOLDING**	$	—	$	—	$	—		—
2. FICA-EMPLOYEE**		—		—		—		—
3. FICA-EMPLOYER**		—		—		—		—
4. UNEMPLOYMENT		—		—		—		—
5. INCOME		—		—		—		—
6. OTHER (ATTACH LIST) franchise taxes		—		—		—		—

7. TOTAL FEDERAL TAXES	$	—	$	—	$	0	$	—

STATE AND LOCAL
8. WITHHOLDING	$	—	$	—	$	—		—
9. SALES		—		—		—		—
10. EXCISE		—		—		—		—
11. UNEMPLOYMENT		—		—		—		—
12. REAL PROPERTY		—		—		—		—
13. PERSONAL PROPERTY		—		—		—		—
14. OTHER		—		—		—		—

15. TOTAL STATE & LOCAL	$	—	$	—	$	—	$	—

16. TOTAL TAXES	$	—	$	—	$	—	$	—

*	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 5 of 11


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-5

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


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:	8/9/10-9/5/10
BANK RECONCILIATIONS


A. BANK:	Wachovia		Wachovia		Wachovia			Wachovia			Wachovia		Wachovia		TOTAL
B. ACCOUNT NUMBER:	2000044344937		2000044344953		2000049760707			2000042096355			2000042096368		2000028428497
C. PURPOSE (TYPE):	Money Market		Money Market		Money Market			Deposit/Wdrwl			Deposit/Wdrwl		Deposit/Wdrwl
1. BALANCE PER BANK STATEMENT	$	5,028,400	$	1,102,849	$	872,628		$	234,817		$	260,926	$	5,617	$	7,505,237
2. ADD: TOTAL DEPOSITS NOT CREDITED									—							—
3. SUBTRACT: OUTSTANDING CHECKS						(29,836	)		(43,440	)						(73,276	)
4. OTHER RECONCILING ITEMS		—							4,950							4,950
5. MONTH END BALANCE PER BOOKS		5,028,400		1,102,849		842,792			196,327			260,926		5,617		7,436,911
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																		$	375


13. TOTAL CASH - END OF MONTH																		$	7,437,286

Page 6 of 11


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: 8/9/10-9/5/10

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						$	638,301
2. FTI Consulting							61,845
3. Goldman Sachs							4,142,218
4. Gordian Group LLC							482,214
5. Greenberg Traurig, LLP							1,161,050		8,723
6. Hammonds							122,338
7. Hunton & Williams	8/17/2010		24,431		24,431		2,364,911		34,172
8. Ivins, Phillips, & Barker							1,105,918		22,140
9. Kekst & Company							7,513
10. Kurtzman Carson Consultants					6,630		513,232		5,000
11. Lowenstein & Sandler PC							25,176		1,327
12. Tavenner & Beran							54,920		13,000
13. Quarles & Brady **	8/23/2010		68,739		29,836		2,958,316		142,804

TOTAL PAYMENTS TO PROFESSIONALS		$	93,170	$	60,897	$	13,637,951	$	227,166

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

**	Remainder of amount approved but not paid to be 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		798		—		798
3. Lanier Parking Solutions		130		130		—

TOTAL	$	3,928	$	3,130	$	798

Page 7 of 11


CASE NAME: CANAL CORPORATION		APPENDIX A

PAYMENTS TO INSIDERS AND PROFESSIONALS

MONTH: 8/9/10-9/5/10


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	June Amount Paid		July Amount Paid		August Amount Paid		TOTAL PAID TO DATE
1. Alvarez & Marsal	Professional	$	666	$	—	$	—		638,301
2. Buchan, Brian J	BOD Fees		—		—		—		14,494
3. Causey Jr, John Paul	Payroll		—		—		—		328,497
4. Causey Jr, John Paul	Expense Reimb		—		737		—		9,763
5. Causey Jr, John Paul	Professional		—		23,430		—		46,800
6. Decaluwe, Rafael C	BOD Fees		—		—		—		30,365
7. Fell, Sir David	BOD Fees		7,000		—		—		137,454
8. Formacek, Candace C.	Payroll		—		—		—		69,375
9. Formacek, Candace C.	Expense Reimb		—		—		—		2,905
10. Fowden, Jerry	BOD Fees		—		—		—		10,705
11. FTI Consulting	Professional		—		—		—		61,845
12. Goldman Sachs	Professional		—		—		—		4,142,218
13. Gordian Group	Professional		—		—		—		482,214
14. Greenberg Traurig	Professional		—		—		—		1,161,050
15. Hammonds LLP	Professional		5,290		—		—		122,338
16. Hellyar, Mary Jane	BOD Fees		—		—		—		18,071
17. Henderson, Thomas	Expense Reimb		—		—		—		9,658
18. Henderson, Thomas M	Payroll		—		—		—		75,000
19. Henfling, Robin	Payroll		—		—		—		94,386
20. Henfling, Robin	Expense Reimb		—		—		—		8,231
21. Hockett, Vincent W.	Payroll		—		—		—		99,375
22. Hockett, Vincent W.	Expense Reimb		—		—		—		2,455
23. Hunton & Williams LLP	Professional		—		—		24,431		2,364,911
24. Ivins, Phillips & Baker	Professional		330,281		—		—		1,105,918
25. Kekst & Company	Professional		—		—		—		7,513
26. Kohut, Andrew J	Payroll		—		—		—		211,993
27. Kohut, Andrew J	Expense Reimb		—		—		—		1,189
28. Kohut, Andrew J	BOD Fees		3,750		—		—		28,900
29. Lowenstein Sandler PC	Professional		—		—		—		25,176
30. Kurtzman Carson Consultants	Professional		6,577		1,392		6,630		513,232
31. McKeough, John	Expense Reimb		—		—		—		16,030
32. Mckeough, John P.	Payroll		—		—		—		66,298
33. Mostrom, Joel K.	Payroll		—		—		—		128,244
34. Mostrom, Joel K.	Expense Reimb		—		—		—		1,862
35. Naftzger, Christopher	Payroll		—		—		—		77,076
36. Naftzger, Christopher	Expense Reimb		—		—		—		2,671
37. Petit, Henri	BOD Fees		2,625		—		—		39,710
38. Quarles & Brady	Professional		245,767		585,181		29,836		2,958,316
39. Rosenblum, DR. John W.	BOD Fees		3,750		—		—		65,300
40. Swade, Terry A.	Payroll		—		—		—		38,625
41. Swade, Terry A.	Expense Reimb		—		—		—		490
42. Tavenner & Beran	Professional		—		—		—		54,920
43. Thelander, Beverly L.	BOD Fees / Exp		3,750		—		—		70,123
44. Turley, Troy	Expense Reimb		—		—		—		11,302
45. Turley, Troy L.	Payroll		—		—		—		60,553
46. Winter, David A	Payroll		—		—		—		72,402
47. Winter, David A	Expense Reimb		—		—		—		251

TOTAL PAYMENTS TO INSIDERS		$	609,456	$	610,740	$	60,897	$	15,488,505

Page 8 of 11


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: 8/9/10-9/5/10

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 9 of 11


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: 8/9/10-9/5/10

INSURANCE


	YES	NO
1. ARE WORKER’S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X

2. ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X

3. PLEASE ITEMIZE POLICIES BELOW.

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: August 9, 2010 To September 5, 2010

INSURANCE SCHEDULE


Type	Carrier/Agent	Period Covered	Payment Amount		Frequency
General Liability	Century Surety Company	4/24/10-4/24/11	$	987	Paid at Inception

Umbrella Liability	Century Surety Company	4/24/10-4/24/11	$	4,357	Paid at Inception

Commercial Property	The Harford	4/24/10-4/24/11	$	6,392	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 ammendment)	Chartis Specialty Insurance Company	1/1/10 - 1/1/14	$	16,752	Paid at Inception

US Workers Compensation	Twin City Fire Insurance Company	5/1/10-5/1/11	$	1,052	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 10 of 11


CASE NAME: CANAL CORPORATION		APPENDIX B

SCHEDULE OF AUTHORIZED FOX RIVER EXPENSES PAID FROM FOX RIVER EXPENSE ACCOUNT

DISBURSEMENTS MADE THROUGH SEPTEMBER 5, 2010


NAME		DATE	AMOUNT
1.	Latham & Watkins	1/20/2010	$	175,000
2.	Quarles & Brady, LLP	1/25/2010		109,913
3.	Quarles & Brady, LLP	3/30/2010		33,100
4.	CH2MHILL	4/17/2010		12,111
5.	Quarles & Brady, LLP	6/12/2010		245,767
6.	Quarles & Brady, LLP	7/10/2010		585,181
7.	Quarles & Brady, LLP	8/28/2010		29,836


	TOTAL PAYMENTS		$	1,190,908

Page 11 of 11

CANAL Corp - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORTS - September 29, 2010

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