EASTERN DISTRICT OF VIRGINIA
In re Pathnet Telecommunications, Inc. CASE NO. BK-01-12264
REPORTING PERIOD: APRIL 30, 2001
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
REQUIRED DOCUMENTS FORM NO. ATTACHED ATTACHED
Schedule of Cash Receipts and Disbursements MOR-1 yes
Bank Reconciliation (or copies of debtor's bank reconciliation MOR-1 (CON'T) yes
Copies of bank statements yes
Cash disbursements journals yes see bank rec
Statement of Operations MOR-2 yes
Balance Sheet MOR-3 yes
Status of Postpetition Taxes MOR-4 n/a
Copies of IRS Form 6123 or payment receipt n/a
Copies of tax returns filed during reporting period n/a
Summary of Unpaid Postpetition Debts MOR-4
Listing of aged accounts payable
Accounts Receivable Reconciliation and Aging MOR-5 n/a
Debtor Questionnaire MOR-5 n/a
- ----------------------------------------------------------------------------------------------------------------
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
- ---------------------------------------
Signature of Joint Debtor Date
/s/ James M. Craig
- ---------------------------------------
Signature of Authorized Individual* Date May 31, 2001
James M. Craig
- --------------------------------------- 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.
FORM MOR-1
(9/99)
IN RE PATHNET TELECOMMUNICATIONS, INC CASE NO. BK-01-12264
Debtor REPORTING PERIOD: APRIL 30, 2001
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 shCase No.tBK-01-12264on 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 (CON'T)]
- -------------------------------------------------------------------------------------------------------------------------
BANK ACCOUNTS CURRENT MONTH CUMULATIVE FILING TO DATE
OPER. PAYROLL TAX OTHER ACTUAL PROJECTED ACTUAL PROJECTED
CASH BEGINNING OF MONTH 267,488 7,022,658 7,290,146 7,290,146
------- ------- ------- --------- ---------- ---------- ---------- -----------
RECEIPTS
CASH SALES
ACCOUNTS RECEIVABLE
LOANS AND ADVANCES
SALE OF ASSETS
OTHER (ATTACH LIST) 40,543 40,543 40,543
TRANSFERS (FROM DIP ACCTS)
------- ------- ------- --------- ---------- ---------- ---------- ----------
TOTAL RECEIPTS 0 0 0 40,543 40,543 40,543
DISBURSEMENTS
NET PAYROLL
PAYROLL TAXES
SALES, USE, &OTHER TAXES
INVENTORY PURCHASES
SECURED/ RENTAL/ LEASES
INSURANCE
ADMINISTRATIVE
SELLING
OTHER (ATTACH LIST) -609 -609 -609
OWNER DRAW *
TRANSFERS (TO DIP ACCTS)
PROFESSIONAL FEES
U.S. TRUSTEE QUARTERLY FEES
COURT COSTS -500 -500 -500
------- ------- ------- --------- ---------- ---------- ---------- ----------
TOTAL DISBURSEMENTS -500 0 0 -609 -1,109 -1,109
NET CASH FLOW -500 0 0 39,934 39,434 39,434
(RECEIPTS LESS DISBURSEMENTS)
------- ------- ------- --------- ---------- ---------- ---------- ----------
CASH - END OF MONTH 266,988 0.00 0.00 7,062,592 7,329,580 7,329,580
------- ------- ------- --------- ---------- ---------- ---------- ----------
- -------------------------------------------------------------------------------------------------------------------------
* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE
THE FOLLOWING SECTION MUST BE COMPLETED
- ------------------------------------------------------------------------------------------------------------------------
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS -500
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS $
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts) $
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES -500
- ------------------------------------------------------------------------------------------------------------------------
FORM MOR-1
(9/99)
In re Pathnet Telecommunications, Inc. Case No. BK-01-12264
Debtor Reporting Period: April 30, 2001
CONTINUATION SHEET FOR MOR-1 Case No. BK-01-12264
A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page.
- --------------------------------------------------------------------------------------------------------------------------------
Operating Payroll Tax Other
# # #
BALANCE PER BOOKS See Attachment
BANK BALANCE
(+) DEPOSITS IN TRANSIT (ATTACH LIST)
(-) OUTSTANDING CHECKS (ATTACH LIST)
OTHER (ATTACH EXPLANATION)
ADJUSTED BANK BALANCE *
* Adjusted bank balance must equal
balance per books
DEPOSITS IN TRANSIT Date Amount Date Amount Date Amount Date Amount
CHECKS OUTSTANDING Ck. # Amount Ck. # Amount Ck. # Amount Ck. # Amount
OTHER
- --------------------------------------------------------------------------------------------------------------------------------
FORM MOR-1 (CONT)
(9/99)
In re Pathnet Telecommunications, Inc Case No. BK-01-12264
Debtor Reporting Period.: April 30, 2001
STATEMENT OF OPERATIONS
(Income Statement) Case No. BK-01-12264
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.
- --------------------------------------------------------------------------------------------------------------------------------
CUMULATIVE
REVENUES Month Filing to Date
Gross Revenues $0.00 $0.00
Less: Returns and Allowances 0.00 $0.00
------------ ----------
Net Revenue $0.00 $0.00
COST OF GOODS SOLD
Beginning Inventory
Add: Purchases
Add: Cost of Labor
Add: Other Costs (attach schedule)
Less: Ending Inventory
Cost of Goods Sold 0.00 0.00
Gross Profit 0.00 0.00
OPERATING EXPENSES
Advertising
Auto and Truck Expense
Bad Debts
Contributions
Employee Benefits Programs
Insider Compensation*
Insurance
Management Fees/Bonuses
Office Expense
Pension & Profit-Sharing Plans
Repairs and Maintenance
Rent and Lease Expense
Salaries/Commissions/Fees
Supplies
Taxes - Payroll
Taxes - Real Estate
Taxes - Other
Travel and Entertainment
Utilities
Other (attach schedule) 4,442 4,442
------------ ----------
Total Operating Expenses Before Depreciation 4,442 4,442
Depreciation/Depletion/Amortization 0
------------ ----------
Net Profit (Loss) Before Other Income & Expenses -4,442 -4,442
OTHER INCOME AND EXPENSES
Other Income (attach schedule) 33,349 33,349
Interest Expense - (intercompany) 0 0
Other Expense (attach schedule) 7,660 7,660
------------ ----------
Net Profit (Loss) Before Reorganization Items 36,567 36,567
------------ ----------
REORGANIZATION ITEMS
Professional Fees 0
U. S. Trustee Quarterly Fees
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
Gain (Loss) from Sale of Equipment
Other Reorganization Expenses (attach schedule)
------------ ----------
Total Reorganization Expenses 0 0
------------ ----------
Income Taxes 0
------------ ----------
Net Profit (Loss) 36,567 36,567
============ ==========
- --------------------------------------------------------------------------------------------------------------------------------
*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-2
(9/99)
FORM MOR-1 (CON'T)
(9/99)
In re Pathnet Telecommunications, Inc Case No. BK-01-12264
Debtor Reporting Period: April 30, 2001
STATEMENT OF OPERATIONS - CONTINUATION SHEET Case No. BK-01-12264
- --------------------------------------------------------------------------------------------------------------------
CUMULATIVE
BREAKDOWN OF "OTHER" CATEGORY MONTH FILING TO DATE
OTHER COSTS
Price Water House Services (Audits and Tax Compliance) April 3,333
Investment Fees - Suntrust account April 609
Delaware Division of Revenue April 250
Commissioner of Revenue Services April 250
--------
TOTAL 4,442
--------
OTHER OPERATIONAL EXPENSES
Interest Income Suntrust Investement account April 33,349
--------
TOTAL 33,349
--------
OTHER INCOME
Adjust PG&E sale of note April 7,660
--------
TOTAL 7,660
--------
OTHER EXPENSES
OTHER REORGANIZATION EXPENSES
- ------------------------------------------------------------------------------------------------------------------
REORGANIZATION ITEMS - INTEREST EARNED ON ACCUMULATED CASH FROM CHAPTER 11:
Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the
bankruptcy proceeding, should be reported as a reorganization item.
FORM MOR-2 (CON'T)
(9/99)
In re Pathnet Telecommunications, Inc. Case No. BK-01-12264
Debtor Reporting Period: April 30, 2001
BALANCE SHEET
Case No. BK-01-12264
The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.
- -------------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents 7,329,580 7,290,146
Restricted Cash and Cash Equivalents (see continuation sheet) 0 0
Accounts Receivable (Net) 0
Notes Receivable 0 0
Inventories 0 0
Prepaid Expenses 6,667 10,000
Professional Retainers 600,000 600,000
Other Current Assets (attach schedule) -85,578,642 -85,579,108
------------ ------------
TOTAL CURRENT ASSETS -77,642,395 -77,678,962
------------ ------------
PROPERTY AND EQUIPMENT
Real Property and Improvements
Machinery and Equipment
Furniture, Fixtures and Office Equipment
Leasehold Improvements
Vehicles
Less Accumulated Depreciation
------------ ------------
TOTAL PROPERTY & EQUIPMENT 0 0
------------ ------------
OTHER ASSETS
Loans to Insiders* 7,983,195 7,983,195
Other Assets (attach schedule)
------------ ------------
TOTAL OTHER ASSETS 7,983,195 7,983,195
------------ ------------
TOTAL ASSETS -69,659,201 -69,695,768
============ ============
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (POSTPETITION)
Accounts Payable
Taxes Payable (refer to FORM MOR-4)
Wages Payable
Notes Payable
Rent / Leases - Building/Equipment
Secured Debt / Adequate Protection Payments
Professional Fees
Amounts Due to Insiders*
Other Postpetition Liabilities (attach schedule)
------------ ------------
TOTAL POSTPETITION LIABILITIES $0 $0
------------ ------------
LIABILITIES SUBJECT TO COMPROMISE (PRE-PETITION)
Secured Debt
Priority Debt
Unsecured Debt 138,260,417 138,260,417
------------ ------------
TOTAL PRE-PETITION LIABILITIES $138,260,417 $138,260,417
------------ ------------
TOTAL LIABILITIES $138,260,417 $138,260,417
OWNER EQUITY
Capital Stock and Preferred Stock 280,582 280,582
Mandatorily redemable preferred stock 62,952,830 62,952,830
Partners' Capital Account
Owner's Equity Account
Retained Earnings - Pre-Petition -271,189,596 -271,189,596
Retained Earnings - Postpetition 36,567
Adjustments to Owner Equity (attach schedule)
Postpetition Contributions (Distributions) (Draws) (attach schedule)
------------ ------------
NET OWNER EQUITY ($207,919,617) ($207,956,184)
------------ ------------
TOTAL LIABILITIES AND OWNERS' EQUITY ($69,659,201) ($69,695,767)
============ ============
- ------------------------------------------------------------------------------------------------------
FORM MOR-3
*"Insider" is defined in 11 U.S.C. Section 101(31). (9/99)
Certain reclassifications on 10Q amounts have been made to conform to MOR reporting
In re Pathnet Telecommunications, Inc Case No. BK-01-12264
Debtor Reporting Period: April 30, 2001
BALANCE SHEET - CONTINUATION SHEET Case No. BK-01-12264
- --------------------------------------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
Other Current Assets
Investments in Subs -91,322,286 -91,322,286
Intercompany receivables 5,716,390 5,716,390
27,254 26,788
------------ ------------
TOTAL -85,578,642 -85,579,108
------------ ------------
Other Assets
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
Other Postpetition Liabilities
Adjustments to Owner Equity
Postpetition Contributions (Distributions) (Draws)
- --------------------------------------------------------------------------------------------------------------------------------
Restricted Cash: cash that is restricted for a specific use and not available to fund operations. Typically, restricted cash
is segregated into a separate account, such as an escrow account.
FORM MOR-3 (CON'T)
(9/99)
In re Pathnet Telecommunications, Inc. Case No. BK-01-12264
Debtor Reporting Period: April 30, 2001
STATUS OF POSTPETITION TAXES
Case No. BK-01-12264
The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero.
Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes.
Attach photocopies of any tax returns filed during the reporting period.
- -------------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD OR AMOUNT DATE CHECK NO. TAX
LIABILITY ACCRUED PAID PAID OR EFT LIABILITY
Federal
Withholding
FICA-Employee
FICA-Employer
Unemployment
Income
Other:_________________
Total Federal Taxes
STATE AND LOCAL
Withholding
Sales
Excise
Unemployment
Real Property
Personal Property
Other:_________________
Total State and Local
TOTAL TAXES
- --------------------------------------------------------------------------------------------------------------------------------
SUMMARY OF UNPAID POSTPETITION DEBTS
Attach aged listing of accounts payable.
- --------------------------------------------------------------------------------------------------------------------------------
NUMBER OF DAYS PAST DUE
Current 0-30 31-60 61-90 Over 90 Total
Accounts Payable
Wages Payable
Taxes Payable
Rent/Leases-Building
Rent/Leases-Equipment
Secured Debt/Adequate Protection Payments
Professional Fees
Amounts Due to Insiders*
Other:__________________________
Other:__________________________
TOTAL POSTPETITION DEBTS
- --------------------------------------------------------------------------------------------------------------------------------
EXPLAIN HOW AND WHEN THE DEBTOR INTENDS TO PAY ANY PAST-DUE POSTPETITION DEBTS.
*"Insider" is defined in 11 U.S.C. Section 101(31). FORM MOR-4
(9/99)
In re Pathnet Telecommunications, Inc Case No. BK-01-12264
Debtor Reporting Period: April 30, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING Case No. BK-01-12264
- --------------------------------------------------------------------------------------------------------------------------------
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
this reporting period? If yes, provide an explanation below.
2. Have any funds been disbursed from any account other than a debtor in possession
account this reporting period? If yes, provide an explanation below.
3. Have all postpetition tax returns been timely filed? If no, provide an explanation
below.
4. Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below.
- --------------------------------------------------------------------------------------------------------------------------------
FORM MOR-5
(9/99)
