Attached files
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| 8-K - FORM 8-K AUGUST 2020 MOR - IMH Financial Corp | form8-kmonthlyoperatingrep.htm |
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MONTHLY OPERATING REPORT File with Court and submit copy to United States Trustee within 20 days after end of month. Submit copy of report to any official committee appointed in the case. Document Explanation Affidavit/Supplement REQUIRED DOCUMENTS Form No. Attached Attached Attached Schedule of Cash Receipts and Disbursements MOR-1 X Not applicable Bank Accounts and Attestation Regarding Bank Accounts MOR-1a X Not applicable Schedule of Professional Fees Paid MOR-1b X Not applicable Statement of Operations MOR-2 X Not applicable Balance Sheet MOR-3 X Not applicable Status of Postpetition Taxes MOR-4 X Not applicable Copies of IRS Form 6123 or payment receipt NA Not applicable Copies of tax returns filed during reporting period NA Not applicable Summary of Unpaid Postpetition Debts MOR-4 X Not applicable Listing of aged accounts payable MOR-4 X Not applicable Accounts Receivable Reconciliation and Aging MOR-5 NA Not applicable Debtor Questionnaire MOR-5 X Not applicable I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief. Signature of Debtor Date Not Applicable Not Applicable Signature of Joint Debtor Date 09/18/2020 Signature of Authorized Individual* Date Samuel J. Montes Chief Financial Officer Printed Name of Authorized Individual Title of Authorized Individual *Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company. MOR (04/07) Docket No. 185 9/18/20
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-1 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CONT)] Bank Accounts Current Month Cumulative Filing to Date Operating Payroll Disbursement Utility Actual Projected Actual Projected Cash Beginning of Period $ 744,491 $ 9,618 $ 584,286 $ 3,095 $ 1,341,490 $ 1,220,461 $ 221,510 $ 221,664 RECEIPTS Cash Sales - - - - - - - - Transfers between accounts (610,000) 310,000 300,000 - - - - - Accounts Receivable 13,227 - - - 13,227 - 14,088 - Loans and Advances 200,590 - - - 200,590 1,238,070 2,005,530 3,043,010 Sale of Assets 199,028 - - - 199,028 - 199,028 - Investment income 14,866 - - - 14,866 - 14,866 - Other - Release of Lender Restricted Funds - - - - - - - - TOTAL RECEIPTS (182,289) 310,000 300,000 - 427,711 1,238,070 2,233,512 3,043,010 DISBURSEMENTS Payroll and benefits - 282,204 6,818 - 289,022 341,371 370,126 416,371 Payroll Taxes - - - - - - - - Sales, Use and Other Taxes - - - - - - - - Inventory Purchases - - - - - - - - Secured/Rental/Leases - - 21,388 - 21,388 21,471 21,388 21,471 Insurance - - 46,875 - 46,875 52,503 47,529 52,503 Administrative & Selling 250 - 129,458 - 129,708 207,022 128,803 207,022 Professional Fees (ordinary course) - - 13,541 - 13,541 - 13,541 - Other - MacArthur deficit funding and Cap Ex - - 103,186 - 103,186 744,238 103,186 746,238 Other - Hotel Fund Preferred Member Distributions 148,665 - - - 148,665 148,665 148,665 146,665 Other - MacArthur Debt Service - - 222,984 - 222,984 222,984 222,984 222,984 Other - Preferred Shareholder Redemption - - - - - - - - Other - Common Shareholder Redemption - - - - - - - - Professional Fees - Restructuring - - 118,465 - 118,465 640,962 723,435 1,372,105 US Trustee Fees - - - - - - - - Court Costs - - - - - - - - TOTAL DISBURSEMENTS 148,916 282,204 662,716 - 1,093,835 2,379,216 1,779,657 3,185,360 NET CASH FLOW (331,205) 27,796 (362,716) - (666,124) (1,141,146) 453,855 (142,350) (Receipts Less Disbursements) Cash End of Period $ 413,286 $ 37,414 $ 221,570 $ 3,095 $ 675,366 $ 79,315 $ 675,366 $ 79,314 FORM MOR-2 (04/07)
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-1a BANK ACCOUNTS 1 Account Period-end Bank Name Account Type Number Bank Balance 1st Century Bank Operating Account Ending in 1914 $413,286.30 1st Century Bank Payroll Account Ending in 5979 37,413.85 1st Century Bank Disbursement Account Ending in 5952 221,570.45 1st Century Bank Utilities Account Ending in 6002 3,095.00 Total Bank Balance $675,365.60 1An attestation regarding the Debtor's bank statements and bank-account reconciliations follows this schedule. FORM MOR-3 (04/07)
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-1a ATTESTATION REGARDING BANK ACCOUNTS The above-captioned Debtor hereby submits this attestation regarding disbursement journals and bank-account reconciliations in lieu of providing copies of bank statements and account reconciliations. I attest that each of the bank accounts listed in the preceding schedule is reconciled to monthly bank statements. The Debtor's standard practice is to ensure that each bank account is reconciled to monthly bank statements for each calendar month within 20 days after month end. 09/18/2020 Signature of Authorized Individual Date Samuel J. Montes Chief Financial Officer Printed Name of Authorized Individual Title of Authorized Individual FORM MOR-4 (04/07)
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-1b SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID This schedule is to include all retained professional payments from case inception to current month. Expense Distribution (Paid Only) imhf c imhms imhdisb Period: From 07/2020 to 08/2020 Account Code Account Name Payee Code Payee Name Payable Control Batch Property Invoice # Invoice Date Period Payment method Amount Check Control Check # Check Date No t e s 173500-1010 Retainers Consulting donli001 Donlin, Recan & Company, Inc. P-19887 3507 imhf c 1454-1 7/24/2020 07-2020 Check -670.50 K-13358 20200724 7/24/2020 Retainer - Notice & consent Solicitation Agent in BK Case donli001 Donlin, Recan & Company, Inc. P-20065 3531 imhf c 1454-2B 8/19/2020 08-2020 Check 11,324.50 K-13489 20200828 8/28/2020 Retainer Replenishment - Notice & consent Solicitation Agent in BK Case donli001 Donlin, Recan & Company, Inc. P-20000 3525 imhf c 1454-2A 8/20/2020 08-2020 Check -10,654.00 K-13490 20200828 8/28/2020 Retainer - Notice & consent Solicitation Agent in BK Case Total 173500-1010 0.00 612000-7000 Consulting Restructuring donli001 Donlin, Recan & Company, Inc. P-19887 3507 imhf c 1454-1 7/24/2020 07-2020 Check 670.50 K-13358 20200724 7/24/2020 Pre-petition Services in connection with Chapter 11 Filing-Programming & Consulting Fees donli001 Donlin, Recan & Company, Inc. P-20065 3531 imhf c 1454-2B 8/19/2020 08-2020 Check 33,274.42 K-13489 20200828 8/28/2020 Post-petition Services in connection with Chapter 11 Filing-Programming & Consulting Fees 7/23/2020 - 7/31/2020 donli001 Donlin, Recan & Company, Inc. P-20000 3525 imhf c 1454-2A 8/20/2020 08-2020 Check 10,654.00 K-13490 20200828 8/28/2020 Pre-petition Services in connection with Chapter 11 Filing-Programming & Consulting Fees Total 612000-7000 44,598.92 613000-7000 Legal Restructuring hahnh001 Hahn & Hessen LLP P-19747 3484 imhf c 183238 7/29/2020 07-2020 Check 58,403.35 K-13353 20200729 7/29/2020 JPM Debtor-In-Possession Legal Restructure Expense hahnh001 Hahn & Hessen LLP P-19893 3509 imhf c 183414 7/23/2020 07-2020 Check 327,657.84 K-13354 20200729 7/29/2020 Negotiating/Documenting Restructuring Support Agreement/Debtor-In_Possession Financing Arrangements landi001 Landis Rath & Cobb LLP P-19894 3509 imhf c 20200723 7/23/2020 07-2020 Check 218,908.59 K-13355 20200729 7/29/2020 Draft, Review, Revise and Analyze First Day Operational Pleadings landi001 Landis Rath & Cobb LLP P-19992 3523 imhf c 20200805 8/5/2020 08-2020 Check 34,533.56 K-13461 20200828 8/28/2020 JPMC for IMH Restructuring Services - Post Petition 06/23/2020 - 7/31/2020 hahnh001 Hahn & Hessen LLP P-19993 3523 imhf c 183440 8/6/2020 08-2020 Check 39,333.00 K-13460 20200828 8/28/2020 Client 112030.285 Co-Counsel to JPMC 7/23/2020 - 7/31/2020 Total 613000-7000 678,836.34 Grand Total 723,435.26 FORM MOR-5 (04/07)
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-2 STATEMENT OF OPERATIONS (Income Statement) The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid. For the month ended August 31, 2020 and the period from July 23, 2020 through August 31, 2020 (Unaudited) REVENUES August 1, 2020 through Cumulative August 31, 2020 Filing to Date Gross Revenue $ - $ - Interest Income - - Net Revenue - - OPERATING EXPENSES Accounting Fees (72,057) (59,065) Legal Fees Other (2,445) 29,823 Salary Expense 194,725 248,530 Benefits Expense 60,105 98,353 Insurance expense 40,168 75,454 Rent Expense 16,895 31,618 Office & Supplies Expense 11,388 12,375 Computer Expense 7,360 14,832 Security Expense 3,488 7,088 Travel & Meal Expense 7,285 10,979 Board and Committee Expense 50,000 75,000 Franchise Tax Expense 16,667 33,334 Bank Fee Expense 520 933 Total Operating Expenses Before Depreciation 334,100 579,253 Depreciation Expense 8,980 17,961 Net Loss Before Other Expenses (343,080) (597,214) OTHER EXPENSES Interest Expense 17,646 20,068 Net Loss Before Reorganizational Items (360,725) (617,282) REORGINIZATION ITEMS Consulting Fees Restructuring 43,953 44,624 Legal Fees 442,877 1,087,782 Total Reorganizational Expense 486,831 1,132,406 Net Loss $ (847,556) $ (1,749,688) FORM MOR-6 (04/07)
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-3 BALANCE SHEET As of August 31, 2020 BOOK VALUE BOOK VALUE ASSETS AT END OF CURRENT ON PETITION DATE REPORTING MONTH July 23, 2020 Unrestricted Cash and Equivalents $ 675,366 $ 271,592 Prepaid Insurance & Deposits 306,372 681,469 Professional Retainers 25,000 55,000 Other Assets 91,504 70,655 Right of Use Office Rent Lease Asset, Net 524,013 562,780 Subtotal 1,622,254 1,641,496 PROPERTY AND EQUIPMENT Furniture, Fixtures, and Office Equipment 197,304 197,304 Leasehold Improvements 389,499 389,499 Software 669,136 669,136 Less: Accumulated Depreciation (1,024,038) (1,006,117) TOTAL PROPERTY AND EQUIPMENT 231,901 249,822 TOTAL ASSETS $ 1,854,155 $ 1,891,319 LIABILITIES AND OWNERS EQUITY LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition) Accounts Payable $ 252,804 $ - Accrued Expenses 175,171 - Accrued Payroll and Related Liabilities 380,500 - Interest Payable 20,068 - Debtor-In-Posession Credit Facility 2,005,530 - Dividends Payable 549,364 - TOTAL POSTPETITION LIABLITIES 3,383,437 - LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition) Accounts Payable $ 94,239 94,239 Accrued Expenses 1,472,682 2,077,651 Office Rent Lease Liability 599,544 643,043 Accrued Payroll and Related Liabilities 524,884 524,884 Interest Payable 950 950 PPP SBA Loan Note Payable 444,000 444,000 Dividend Payable 3,992,961 3,992,961 TOTAL PREPETITION LIABLITIES 7,129,259 7,777,728 TOTAL LIABLITIES 10,512,696 7,777,728 SHAREHOLDERS' AND OWNER EQUITY Series B Preferred Stock 55,240,341 55,015,221 Series A Preferred Stock 21,842,859 21,833,126 Common Stock 190,844 190,844 Treasury Stock (7,285,688) (7,285,688) Paid-in Capital 700,790,285 701,085,419 Retained Earnings (Deficit) - Pre-Petition (777,305,743) (776,725,332) Retained Earnings (Deficit) - Post-Petition (2,131,439) - NET OWNER EQUITY (8,658,541) (5,886,410) Total Liabilities and Owners Equity $ 1,854,155 $ 1,891,319 *"Insider" is defined in 11 U.S.C. Section 101(31). FORM MOR-7 (04/07)
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-4 STATUS OF POSTPETITION TAXES August 1, 2020 through August 31, 2020 (Unaudited) The Debtor believes that the only taxes incurred Post-Petition are Payroll related in nature. For the Court’s benefit, the Debtors’ payroll processor, Oasis Outsourcing, A PAYCHEX Company, withholds all applicable payroll taxes. As such, the Debtors believe that they are current on all Post-Petition tax obligations. FORM MOR-8 (04/07)
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-4 SUMMARY OF UNPAID POSTPETITION DEBTS Attach aged listing of accounts payable. Payables Aging Report imhf c imhms imhdisb Period: 08/2020 As of : 09/01/2020 Property Code Property Name Payee Code Payee Name Current Owed 0-30 Owed 31-60 Owed 61-90 Owed Over 90 Owed imhf c IMH Financial Corporation 1cbvi001 1CB Visa -3,264.60 -764.60 0.00 -2,500.00 0.00 bulle001 Bulletproof Securities Inc. 3,487.50 3,487.50 0.00 0.00 0.00 centu001 CenturyLink (Office Phone) 1,556.17 1,556.17 0.00 0.00 0.00 cisco001 Cisco 25.00 0.00 25.00 0.00 0.00 delaw002 Delaware Secretary of State (LLC Tax) 40,000.00 0.00 40,000.00 0.00 0.00 hahnh001 Hahn & Hessen LLP 118,938.67 118,938.67 0.00 0.00 0.00 landi001 Landis Rath & Cobb LLP 90,542.31 90,542.31 0.00 0.00 0.00 opacs001 O.P.A.C.S., INC. 220.82 220.82 0.00 0.00 0.00 proco001 ProCopy Office Solutions, INC. 47.71 47.71 0.00 0.00 0.00 veriz001 Verizon 1,250.61 1,250.61 0.00 0.00 0.00 Total imhfc 252,804.19 215,279.19 40,025.00 -2,500.00 0.00 Grand Total 252,804.19 215,279.19 40,025.00 -2,500.00 0.00 *"Insider" is defined in 11 U.S.C. Section 101(31). FORM MOR-9 (04/07)
UNITED STATES BANKRUPTCY COURT REGION 3 DISTRICT OF DELAWARE In re: IMH Financial Corporation Case No. 20-11858 (CSS) Debtor Reporting Period: August 2020 MOR-5 ACCOUNTS RECEIVABLE RECONCILIATION AND AGING – Not Applicable Accounts Receivable Reconciliation Amount Total Accounts Receivable at the beginning of the reporting period + Amounts billed during the period - Amounts collected during the period Total Accounts Receivable at the end of the reporting period Accounts Receivable Aging Amount 0 - 30 days old 31 - 60 days old 61 - 90 days old 91+ days old Total Accounts Receivable Amount considered uncollectible (Bad Debt) Accounts Receivable (Net) DEBTOR QUESTIONNAIRE Must be completed each month Yes No 1. Have any assets been sold or transferred outside the normal course of business X this reporting period? If yes, provide an explanation below. 2. Have any funds been disbursed from any account other than a debtor in possession X account this reporting period? If yes, provide an explanation below. 3. Have all postpetition tax returns been timely filed? If no, provide an explanation N/A below. 4. Are workers compensation, general liability and other necessary insurance X coverages in effect? If no, provide an explanation below. 5. Has any bank account been opened during the reporting period? If yes, provide X documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.