Attached files
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8-K - FORM 8-K - FIRSTFED FINANCIAL CORP | d427121d8k.htm |
Exhibit 99.1
UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA
In Re: | CHAPTER 11 (BUSINESS) | |||||
FirstFed Financial Corp |
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Case Number: | 2:10-bk-12927-ER | |||||
Operating Report Number: |
33 (Amended) | |||||
Debtor(s). | For the Month Ending: | September 30, 2012 |
I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)
1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS |
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278,640.86 | ||||||
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL |
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2,363,536.58 | ||||||
ACCOUNT REPORTS |
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3. BEGINNING BALANCE: |
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1,760,864.82 | ||||||
4. RECEIPTS DURING CURRENT PERIOD: |
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Accounts Receivable - Post-filing |
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Accounts Receivable - Pre-filing |
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General Sales |
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Other |
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TOTAL RECEIPTS THIS PERIOD: |
0.00 | |||||||
5. BALANCE: |
1,760,864.82 | |||||||
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD |
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Transfers to Other DIP Accounts (from page 2) |
0.00 | |||||||
Disbursements (from page 2) |
10,041.32 | |||||||
TOTAL DISBURSEMENTS THIS PERIOD:*** |
10,041.32 | |||||||
7. ENDING BALANCE: |
1,750,823.50 | |||||||
8. General Account Number(s): |
XXXXXX3933 | |||||||
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Union Bank | ||||||||
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Depository Name & Location: |
445 South Figueroa | |||||||
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Los Angeles, CA 90071 | ||||||||
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* | All receipts must be deposited into the general account. |
** | Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale. |
*** | This amount should be the same as the total from page 2. |
Page 1 of 16
TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD
Date mm/ |
Check |
Payee or DIP account |
Purpose |
*Amount Transfered |
**Amount Disbursed |
Amount | ||||||||||||
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9/12/2012 | 1232 | releVenture, LLC | Accounting Svcs (Aug-12) | 191.25 | 191.25 | |||||||||||||
9/25/2012 | EFT | Union Bank | Bank Fees | 79.58 | 79.58 | |||||||||||||
9/28/2012 | 1235 | Registrar & Transfer | Stock Registrar Fees (Sep-12) | | | |||||||||||||
9/28/2012 | 1233 | Riordon, Lewis & Haden | Office Rent (Oct-12) | 1,500.00 | 1,500.00 | |||||||||||||
9/28/2012 | 1234 | Manatt, Phelps & Phillips, LLP | Legal-Special Counsel (Jul-12) | 8,270.49 | 8,270.49 | |||||||||||||
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TOTAL DISBURSEMENTS THIS PERIOD: |
| 10,041.32 | 10,041.32 | |||||||||||||||
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* | Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the amount column will be filled in for you. |
** | Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the amount column will be filled in for you. |
Page 2 of 16
GENERAL ACCOUNT
BANK RECONCILIATION
Bank statement Date: | 9/30/2012 | Balance on Statement: | $1,760,593.99 | |||||||||||
Plus deposits in transit (a): | ||||||||||||||
Deposit Date |
Deposit Amount |
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TOTAL DEPOSITS IN TRANSIT |
0.00 | |||||||||||||
Less Outstanding Checks (a): |
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Check Number |
Check Date |
Check Amount |
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1233 | 9/28/2012 | 1,500.00 | ||||||||||||
1234 | 9/28/2012 | 8,270.49 | ||||||||||||
1235 | 9/28/2012 | 383.98 | ||||||||||||
TOTAL OUTSTANDING CHECKS: | 10,154.47 | |||||||||||||
Bank statement Adjustments: | ||||||||||||||
Explanation of Adjustments- |
ADJUSTED BANK BALANCE: | $1,750,439.52 | |||||||||
* It is acceptable to replace this form with a similar form |
(383.98) | |||||||||
** Please attach a detailed explanation of any bank statement adjustment |
Page 3 of 16
I. CASH RECEIPTS AND DISBURSEMENTS
B. (PAYROLL ACCOUNT)
1. TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS |
0.00 | |||||
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS |
451,363.89 | |||||
3. BEGINNING BALANCE: |
48,636.11 | |||||
4. RECEIPTS DURING CURRENT PERIOD: |
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5. BALANCE: |
48,636.11 | |||||
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD TOTAL DISBURSEMENTS THIS PERIOD:*** |
0.00 | |||||
7. ENDING BALANCE: |
48,636.11 | |||||
8. PAYROLL Account Number(s): |
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XXXXXX3941 | ||||||
Depository Name & Location: |
Union Bank | |||||
445 South Figueroa | ||||||
Los Angeles, CA 90071 |
Page 4 of 16
TOTAL DISBURSEMENTS FROM PAYROLL ACCOUNT FOR CURRENT PERIOD
Date mm/dd/yyyy |
Check Number |
Payee |
Purpose |
Amount | ||||||
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TOTAL DISBURSEMENTS THIS PERIOD: | 0.00 | |||||||||
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Page 5 of 16
PAYROLL ACCOUNT
BANK RECONCILIATION
Bank statement Date: | 9/30/2012 | Balance on Statement: | $48,636.11 | |||||||||||
Plus deposits in transit (a): |
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Deposit Date |
Deposit Amount |
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TOTAL DEPOSITS IN TRANSIT |
0.00 | |||||||||||||
Less Outstanding Checks (a): |
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Check Number |
Check Date |
Check Amount |
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TOTAL OUTSTANDING CHECKS: |
0.00 | |||||||||||||
Bank statement Adjustments: |
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Explanation of Adjustments- |
ADJUSTED BANK BALANCE: |
$ | 48,636.11 | ||||||||
* It is acceptable to replace this form with a similar form |
0.00 | |||||||||
** Please attach a detailed explanation of any bank statement adjustment |
Page 6 of 16
I. CASH RECEIPTS AND DISBURSEMENTS
C. (TAX ACCOUNT)
1. TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS |
0.00 | |||
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR TAX |
0.00 | |||
ACCOUNT REPORTS | ||||
3. BEGINNING BALANCE: |
10,000.00 | |||
4. RECEIPTS DURING CURRENT PERIOD: |
5. BALANCE: |
10,000.00 | |||
6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD |
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TOTAL DISBURSEMENTS THIS PERIOD:*** |
0.00 |
7. ENDING BALANCE: |
10,000.00 | |||||
8. TAX Account Number(s): |
XXXXXX3968 | |||||
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Union Bank | ||||||
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Depository Name & Location: |
445 South Figueroa | |||||
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Los Angeles, CA 90071 | ||||||
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Page 7 of 16
TOTAL DISBURSEMENTS FROM TAX ACCOUNT FOR CURRENT PERIOD
Date mm/dd/yyyy |
Check Number |
Payee |
Purpose |
Amount | ||||
NONE |
none | |||||||
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TOTAL DISBURSEMENTS THIS PERIOD: |
0.00 | |||||||
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Page 8 of 16
TAX ACCOUNT
BANK RECONCILIATION
Bank statement Date: | 9/30/2012 | Balance on Statement: | $ | 10,000.00 | ||||||||||||
Plus deposits in transit (a): | ||||||||||||||||
Deposit Date |
Deposit Amount |
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TOTAL DEPOSITS IN TRANSIT | 0.00 | |||||||||||||||
Less Outstanding Checks (a): |
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Check Number |
Check Date |
Check Amount |
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TOTAL OUTSTANDING CHECKS: | 0.00 | |||||||||||||||
Bank statement Adjustments: |
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Explanation of Adjustments- |
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ADJUSTED BANK BALANCE: |
$ | 10,000.00 | ||||||||||||||
* It is acceptable to replace this form with a similar form |
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** Please attach a detailed explanation of any bank statement adjustment |
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Page 9 of 16
I. D SUMMARY SCHEDULE OF CASH
ENDING BALANCES FOR THE PERIOD:
(Provide a copy of monthly account statements for each of the below)
General Account: | 1,750,823.50 | |||||||||||||
Payroll Account: | 48,636.11 | |||||||||||||
Tax Account: | 10,000.00 | |||||||||||||
*Other Accounts: |
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*Other Monies: |
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**Petty Cash (see below): | 0.00 | |||||||||||||
TOTAL CASH AVAILABLE: |
1,799,459.61 | |||||||||||||
Petty Cash Transactions: |
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Date | Purpose | Amount | ||||||||||||
Opening balance | 0.00 | |||||||||||||
TOTAL PETTY CASH TRANSACTIONS: |
0.00 | |||||||||||||
ENDING PETTY CASH |
0.00 | |||||||||||||
* Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account # |
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** Attach Exhibit Itemizing all petty cash transactions |
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Page 10 of 16
II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS | ||||||||||||||||
AND OTHER PARTIES TO EXECUTORY CONTRACTS | ||||||||||||||||
Creditor, Lessor, Etc. |
Frequency of Payments (Mo/Qtr) |
Amount of Payment | Post-Petition payments not made (Number) |
Total Due | ||||||||||||
Regus Mgt, lessor* |
monthly | $ | 0.00 | 0 | 0.00 | |||||||||||
Premier Business Centers** |
monthly | $ | 0.00 | 0 | 0.00 | |||||||||||
Riordon, Lewis & Haden *** |
monthly | $ | 1,500.00 | 0 | 0.00 | |||||||||||
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TOTAL DUE: | 0.00 | |||||||||||||||
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* | FirstFed Financial Corp. vacated offices managed by Regus Mgt. on 06/22/10. |
** | FirstFed Financial Corp vacated offices managed by Premier Business Centers prior to 09/30/10. |
*** | FirstFed Financial Corp entered into a new lease agreement effective 10/01/10. |
The offices are managed by Riordan, Lewis & Haden.
III. TAX LIABILITIES
FOR THE REPORTING PERIOD:
Gross Sales Subject to Sales Tax: |
0.00 | |||||||
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Total Wages Paid: |
0.00 | |||||||
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Total Post-Petition Amounts Owing |
Amount Delinquent | Date Delinquent Amount Due | ||||||||
Federal Withholding* |
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State Withholding* |
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FICA- Employers Share* |
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FICA- Employees Share* |
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Federal Unemployment* |
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Sales and Use |
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Real Property |
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Other-Delaware Franchise** |
0.00 | 0.00 | ||||||||
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TOTAL: |
0.00 | 0.00 | ||||||||
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* | Amounts paid through the payroll account. See Total Disbursements from Payroll Account Current Period |
** | It has been determined that prior year tax liabilities have been applied to tax receivable due from the State of Delaware. |
Page 11 of 16
IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE
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*Accounts
Payable Post-Petition |
Accounts Receivable | |||||||||||
Pre-Petition | Post-Petition | |||||||||||
30 days or less |
6,882.25 | 0.00 | 0.00 | |||||||||
31 - 60 days |
0.00 | 0.00 | 0.00 | |||||||||
61 - 90 days |
0.00 | 0.00 | 0.00 | |||||||||
91 - 120 days |
0.00 | 0.00 | 0.00 | |||||||||
Over 120 days |
0.00 | 113,650.00 | 0.00 | |||||||||
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TOTAL: |
6,882.25 | 113,650.00 | 0.00 | |||||||||
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Delaware receivable of $124,600 has been adjusted down to $118,250 after acceptance of change in methodology from the authorized share method to the capital method (using gross assets). The receivable was further reduced by $4,600 due to the 2011 Delaware Franchise Tax and fiing fee resulting in a balance due of $113,650.
V. INSURANCE COVERAGE
Type |
Name of Carrier | Amount of Coverage |
Policy Expiration Date |
Premium Paid Through (Date) |
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General Liability |
Hartford | 1,000,000.00 | 1/11/2012 | 1/11/2013 | ||||||||||
Workers Compensation |
No employees | |||||||||||||
Casualty |
None | |||||||||||||
Vehicle |
None | |||||||||||||
The Debtor also maintained directors and officers liability coverage purchased pre-petition for the 2009/2010 coverage year and an extended reporting period for the policies covering the 2008/2009 coverage year also purchased pre-petition. The extended reporting period expired on October 22, 2010.
VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)
Quarterly Period Ending (Date) |
Total Disbursements |
Quarterly Fees | Date Paid | Amount Paid |
Quarterly Fees Still Owing |
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31-Mar-2010 |
134,229.09 | 975.00 | 18-Apr-2010 | 975.00 | 0.00 | |||||||||||||||
30-Jun-2010 |
157,114.39 | 1,625.00 | 20-Jul-2010 | 1,625.00 | 0.00 | |||||||||||||||
30-Sep-2010 |
89,586.25 | 975.00 | 12-Oct-2010 | 975.00 | 0.00 | |||||||||||||||
31-Dec-2010 |
333,124.03 | 4,875.00 | 10-Jan-2011 | 4,875.00 | 0.00 | |||||||||||||||
31-Mar-2011 |
378,812.38 | 4,875.00 | 27-Apr-2011 | 4,875.00 | 0.00 | |||||||||||||||
30-Jun-2011 |
173,135.33 | 1,625.00 | 25-Jul-2011 | 1,625.00 | 0.00 | |||||||||||||||
30-Sep-2011 |
229,206.02 | 1,950.00 | 26-Oct-2011 | 1,950.00 | 0.00 | |||||||||||||||
31-Dec-2011 |
250,827.80 | 1,950.00 | 24-Jan-2012 | 1,950.00 | 0.00 | |||||||||||||||
31-Mar-2012 |
458,817.09 | 4,875.00 | 30-Apr-2012 | 4,875.00 | 0.00 | |||||||||||||||
30-Jun-2012 |
254,642.87 | 1,950.00 | 24-Jul-2012 | 1,950.00 | 0.00 | |||||||||||||||
30-Sep-2012 |
454,198.70 | 4,875.00 | 0.00 | 4,875.00 | ||||||||||||||||
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30,550.00 | 25,675.00 | 4,875.00 | ||||||||||||||||||
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* | Post-Petition Accounts Payable SHOULD NOT include professionals fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report |
Page 12 of 16
VII SCHEDULE OF COMPENSATION PAID TO INSIDERS
Name of Insider |
Date of Order Authorizing Compensation |
*Authorized Gross Compensation |
Gross Compensation Paid During the Month*** |
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Babette Heimbuch |
** | $ | 20,000/ month | 0.00 | ||||||
Vikas Arora |
** | $ | 17,500/ month | 0.00 | ||||||
Brenda Battey |
*** | $ | 20,000/month | 0.00 | ||||||
Brian Argrett |
**** | $ | 10,000/month | 0.00 | ||||||
* | Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month) |
** | Notice of Insider Compensation for Babette Heimbuch and Vikas Arora was filed and served on the UST and other necessary parties on January 7, 2010; no objections were filed. |
*** | Ms. Heimbuch and Mr. Arora no longer work for the Debtor. Ms. Battey has worked periodically for the Debtor at a rate of $150.00 per hour. |
**** | Notice of Insider Compensation for Brian Argrett was filed and served on the UST and other necessary parties on June 10, 2010; no objections were filed. Mr, Argrett was engaged by the Debtor upon the resignation of Ms. Heimbuch to provide Debtor with a second officer (i.e. Corporate Secretary) and to serve as its then Chief Executive Officer. Mr Argrett resigned as Corporate Secretary and as an employee effective 12/31/2011. |
VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS
Name of Insider |
Date of Order Authorizing Compensation |
Description | Amount Paid During the Month | |||
NONE |
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Page 13 of 16
IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)
Current Month | Cumulative Post-Petition | |||||||||
Sales/Revenue: | ||||||||||
Gross Sales/Revenue |
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Less: Returns/Discounts |
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Net Sales/Revenue |
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Cost of Goods Sold: | ||||||||||
Beginning Inventory at cost |
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Purchases |
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Less: Ending Inventory at cost |
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Cost of Goods Sold (COGS) |
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Gross Profit | | | ||||||||
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Other Operating Income (Itemize) |
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Operating Expenses: | ||||||||||
Payroll - Insiders |
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Payroll - Other Employees |
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Payroll Taxes |
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Other Taxes (Itemize) |
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Legal & Professional-Special Counsel * |
8,270.49 | 548,919.46 | ||||||||
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Legal & Professional-Bankruptcy Counsel ** |
| 1,117,840.46 | ||||||||
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Legal & Professional-Administration *** |
16,000.00 | 440,000.00 | ||||||||
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Legal & Professional-Accounting & Auditing **** |
276.25 | 561,935.90 | ||||||||
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Legal & Professional-Other ***** |
| 50,000.00 | ||||||||
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Depreciation and Amortization |
24.00 | 792.00 | ||||||||
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Rent Expense - Real Property |
1,500.00 | 49,257.79 | ||||||||
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Lease Expense - Personal Property |
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Insurance |
34.42 | 3,429.78 | ||||||||
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Real Property Taxes |
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Telephone and Utilities |
| 1,194.20 | ||||||||
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IT Expenses |
| 371.00 | ||||||||
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Travel and Entertainment (Itemize) |
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Parking & Mileage |
| 1,320.75 | ||||||||
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Miscellaneous Operating Expenses (Itemize) |
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Stock registrar fees |
383.98 | 17,013.92 | ||||||||
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Delaware & Calif filing fees & franchise tax |
| 14,414.27 | ||||||||
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Indentured Trustee Expenses |
| 840.00 | ||||||||
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SEC 8K fees |
1,731.00 | 31,299.00 | ||||||||
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Relocation Expenses |
| 1,605.88 | ||||||||
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CSC fee for Delaware representation |
| 727.00 | ||||||||
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US Trustee fees accrued |
1,625.00 | 30,550.00 | ||||||||
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Office Supplies |
| 347.86 | ||||||||
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Postage & Courier |
| 203.28 | ||||||||
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Document Management |
| 12,869.20 | ||||||||
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Payroll Processing Fees |
| 2,068.88 | ||||||||
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Banking Fees |
79.58 | 579.05 | ||||||||
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Total Operating Expenses |
29,924.72 | 3,336,874.69 | ||||||||
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Net Gain/(Loss) from Operations |
(29,924.72 | ) | (3,336,874.69 | ) | ||||||
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Non-Operating Income: | ||||||||||
Interest Income |
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Net Gain on Sale of Assets (Itemize) |
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Other (Itemize) |
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Total Non-Operating income |
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Non-Operating Expenses: | ||||||||||
Interest Expense |
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Legal and Professional (Itemize) |
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Other (Itemize) |
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Total Non-Operating Expenses |
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NET INCOME/(LOSS) | (29,924.72 | ) | (3,336,874.69 | ) | ||||||
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(Attach exhibit listing all itemizations required above)
Footnotes:
* | Special counsel Manatt, Phelps & Phillips, LLP were paid pre-petition an initial retainer of $300,000. No Pre-petition fees and costs credited were used against the retainer. A $300,000 adjustment to Prepaid Legal Expense was made through Owners Equity. Costs and expenses incurred between the filing date and Mar-2011 were $304,574.92 exhausting the retainer. Pending court approval, $29,197.55 in fees for August and September 2012 have been incurred but not accrued. Additionally, $61,929.24 unpaid fees for March 2011 through July 2012 representing the 20% withheld amount per the Knudsen Order remain unpaid. See Footnote ** on Schedule X - Balance Sheet. |
** | Bankruptcy counsel Landau, Gottfried & Berger, LLP were paid pre-petition an initial retainer of $250,000. Pre-petition fees and costs credited against the retainer were $50,810.31 leaving a remaining retainer of $199,189.69 as of the filing date. A $199,189.69 adjustment to Prepaid Legal Expense was made through Owners Equity. Costs and fees from the filing date until August 2010 were $210,461.44 exhausting the remaining retainer. Pending court approval, $149,933.86 in fees for August and September 2012 have been incurred but not accrued. Additionally, $223,619.97 in unpaid fees for August 2010 through July 2012 representing the 20% withheld amount per the Knudsen Order remain unpaid. See footnote ** on Schedule X - Balance Sheet. |
*** | June and July Professional fees totaling $40,000 for Delta Corps, Inc., hiring Donald Pelgrim as Chief Administrative Officer, were paid after approval for payment by the Bankruptcy court. September 2010 through September 2012 professional fees of $500,000 for Carl McKinzie as Chief Executive Officer were incurred. $400,000 was paid after approval for payment by the Bankruptcy Court. |
**** | Accounting & Auditing Professional fees in the amount of $13,356 for Hutchinson & Bloodgood, LLP were incurred and unpaid pending approval of the fee statement from Bankruptcy court. Hutchinson & Bloodgood is no longer providing services to the Debtor. |
**** | The Debtor engaged Crowe Horwath, LLP for assistance with various tax matters including a 2008 federal tax audit and the filing of the 2009 tax returns. May 2010 through January 2012 costs and professional fees of $548,354.15 for Crowe Horwaths engagement were paid after court approval, Pending court approval $56,800.06 in costs and fees for February through September 2012 have been incurred but not accrued. Additionally, $135,798.40 in unpaid fees for May 2010 through January 2012 representing the 20% withheld amount per the Knudsen Order remain unpaid. See footnote ** on Schedule X -Balance Sheet. |
***** | In June, the Debtor engaged the firm of Rus Miliband & Smith, LLP to investigate potential claims which may be brought by the Debtor. The initial engagement was on an hourly basis with a $50,000 cap. An application for employment was submitted and approved by the bankruptcy court. This amount has been fully utlized by Rus Miliband & Smith, LLP. |
Page 14 of 16
X. BALANCE SHEET
(ACCRUAL BASIS ONLY)
ASSETS |
Current Month End | |||||||||
Current Assets: |
||||||||||
Unrestricted Cash |
1,809,075.63 | |||||||||
Restricted Cash |
||||||||||
Accounts Receivable (Itemized, see below)* |
113,650.00 | |||||||||
Inventory |
||||||||||
Notes Receivable |
||||||||||
Prepaid Expenses (Rent) |
1,500.00 | |||||||||
Prepaid Expense-Legal Special Counsel |
| |||||||||
Prepaid Expense-Legal & Professional-Administration |
| |||||||||
Prepaid Expense-Other Legal Counsel |
| |||||||||
Prepaid-Other |
103.22 | |||||||||
Total Current Assets |
1,924,328.85 | |||||||||
Property, Plant, and Equipment |
875.00 | |||||||||
Accumulated Depreciation/Depletion |
792.00 | |||||||||
Net Property, Plant, and Equipment |
83.00 | |||||||||
Other Assets (Net of Amortization): |
||||||||||
Due from Insiders |
||||||||||
Other (Rent Deposits) |
2,912.00 | |||||||||
Total Other Assets |
2,912.00 | |||||||||
TOTAL ASSETS |
1,927,323.85 | |||||||||
LIABILITIES |
||||||||||
Post-petition Liabilities: |
||||||||||
Accounts Payable (Itemized, see below)** |
6,882.25 | |||||||||
Taxes Payable |
||||||||||
Notes Payable |
||||||||||
Professional fees |
||||||||||
Secured Debt |
||||||||||
Other (Itemize) |
||||||||||
Total Post-petition Liabilities |
6,882.25 | |||||||||
Pre-petition Liabilities: |
||||||||||
Secured Liabilities |
||||||||||
Priority Liabilities |
||||||||||
Unsecured Liabilities*** |
159,617,187.50 | |||||||||
Other (Itemized, see below)**** |
1,521.21 | |||||||||
Total Pre-petition Liabilities |
159,618,708.71 | |||||||||
TOTAL LIABILITIES |
159,625,590.96 | |||||||||
EQUITY: |
||||||||||
1 Pre-petition Owners Equity (original amount) |
(155,177,680.00 | ) | ||||||||
2 Direct Charges to Equity (Itemized, see below)***** |
816,287.58 | |||||||||
3 Post-petition Profit/(Loss) |
(3,336,874.69 | ) | ||||||||
TOTAL EQUITY |
(157,698,267.11 | ) | ||||||||
TOTAL LIABILITIES & EQUITY |
1,927,323.85 | |||||||||
(0.00 | ) | |||||||||
* Itemization of Accounts Receivable: |
||||||||||
Delaware Franchise Tax Refund Due (prior years) |
113,650.00 | |||||||||
Total |
113,650.00 | |||||||||
**Itemization of Post-Petition Liabilities: |
||||||||||
Christopher Damore (Accounting Svcs-MOR Prep) |
276.25 | |||||||||
U.S. Quarterly Trustee Fees |
4,875.00 | |||||||||
RR Donnelley |
1,731.00 | |||||||||
subtotal |
6,882.25 | |||||||||
**Not included in the above table are the following incured and unpaid amount that are pending Bankruptcy Court approval: |
||||||||||
Carl McKinzie (Chief Executive Officer) |
100,000.00 | |||||||||
Hutchinson & Bloodgood, LLP (accounting & auditing) |
13,356.00 | |||||||||
Crowe Horwath, LLP (accounting & audit) |
192,598.46 | |||||||||
Landau, Gottfried, & Berger, LLP |
373,553.83 | |||||||||
Manatt, Phelps & Philips, LLP |
91,126.79 | |||||||||
subtotal |
770,635.08 | |||||||||
***Itemization of Pre-Petition Unsecured Liabilities |
||||||||||
Senior Debt Due 2015 |
53,429,687.56 | |||||||||
Senior Debt Due 2016 |
53,244,791.61 | |||||||||
Senior Debt Due 2017 |
52,942,708.33 | |||||||||
Total |
159,617,187.50 | |||||||||
****Itemization of Pre-Petition Other Liabilities |
||||||||||
Nixon Peabody |
318.74 | |||||||||
Registrar & Transfer |
983.52 | |||||||||
DF King & Co |
218.95 | |||||||||
Total |
1,521.21 | |||||||||
*****Itemization of Direct Charges to Equity |
||||||||||
Reduction in Delaware tax |
157,600.00 | |||||||||
Refund from Auditors |
110,883.44 | |||||||||
Legal Retainer refundArnold & Porter |
50,000.00 | |||||||||
Legal RetainerManatt, Phelps & Phillips, LLP |
300,000.00 | |||||||||
Legal RetainerLandau, Gottfried & Berger , LLP |
199,189.69 | |||||||||
Change in SEC Refund |
135.53 | |||||||||
Bills received and accrued after BK filing (see above) |
(1,521.21 | ) | ||||||||
Change in Opening Cash Balance |
0.04 | |||||||||
Change in New Oak receivable |
0.09 | |||||||||
Total |
816,287.58 |
Page 15 of 16
XI. QUESTIONNAIRE
No | Yes | |||||
1. | Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If Yes, explain below: | x | ¨ | |||
No | Yes | |||||
2. | Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If Yes, explain below: | x | ¨ | |||
3. | State what progress was made during the reporting period toward filing a plan of reorganization: | |||||
At a hearing held on Thursday, October 11, 2012 to consider confirmation of the Modified Second Amended Chapter 11 Plan of Reorganization Proposed by the Debtor and Holdco Advisors L.P., Dated October 10, 2012 (Plan), the Bankruptcy Court ordered that the Plan be confirmed. | ||||||
4. | Describe potential future developments which may have a significant impact on the case: | |||||
There is a potential refund of over $130 million relating to loss carrybacks from earlier tax years. The FDIC, in its capacity as Receiver for the Debtors bank subsidiary, has submitted a proof of claim which, among other things, claims that the FDIC is entitled to some or all of any such tax refund and may have other super priority claims. If the FDICs claim is successful, it will reduce or potentially eliminate any assets available for distribution to general unsecured creditors. The Plan provides, inter alia, for the Reorgabnized Debtor to continue to pursue the Debtors claims to the refund against the FDIC. The Debtor reserves its rights with respect to any such claims by the FDIC. | ||||||
5. | Attach copies of all Orders granting relief from the automatic stay that were entered duing the reporting period. | |||||
None | ||||||
No | Yes | |||||
6. | Did you receive any exempt income this month, which is not set forth in the operating report? If Yes, please set forth the amounts and sources of the income below.
|
x | ¨ | |||
I, Carl W. McKinzie, Chief Executive Officer, declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge. |
/s/ Carl W. McKinzie |
Dated: 10/19/2012 | |||||
Carl W. McKinzie | ||||||
Chief Executive Officer |
Page 16 of 16