UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF VIRGINIA
____________________ DIVISION
In Re: PATHNET OPERATING, INC. ) Chapter 11
)
Case Number BK-01-12266
DEBTORS )
- ----------------------------------------
MONTHLY OPERATING REPORT Calendar Month May 1, 2001 to May 31, 2001
FINANCIAL BACKGROUND INFORMATION
1. ACCOUNTING BASIS: Cash Accrual X
2. PREPARER: State the name, address, telephone number and position of
the person(s) who actually compiled the information contained in this report.
See attached
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3. NUMBER OF EMPLOYEES paid during this period: -0-
4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the
last reporting period? Yes No X
------------ ------------ .
If yes, explain below:
- --------------------------------------------------------------------------------
5. Are all BUSINESS LICENSES current? Yes No X Not Applicable
6. PRE-PETITION ACCOUNTS RECEIVABLE:
Beginning Balance $ 2,874,379
--------------
Collected this Period 80,360
Ending Balance 2,794,019
7. POST-PETITION ACCOUNTS RECEIVABLE:
0-30 Days: $ 126,381 31-60 Days: $ 13,463 Over 60 Days: $ -0-
--------- -------- --------
If there are any POST-PETITION Accounts Receivable over 60 days,
provide schedule AR giving a listing of such accounts and explain the
delinquencies.
8. POST-PETITION ACCOUNTS PAYABLE:
0-30 Days: $ 523,821 31-60 Days: $ 808,703 Over 60 Days: $ -0-
--------- -------- --------
If there are any POST-PETITION Accounts Payable over 30 days, provide
Schedule AP giving a listing of such accounts and explain the delinquencies.
SEE ATTACHMENTS
9. TAXES Are all taxes being paid to the proper taxing authorities when
due? Yes No X , On the attached
-------- -------
IRS Form 6123 report all tax deposits made with any financial institution for
federal employment taxes. Be sure the form is complete and signed by an
authorized employee of the receiving institution or taxing authority. Attach to
this report a completed Form 6123 for each deposit made during the reporting
period. Also attach copies of the monthly sales tax report, payroll tax report
and unemployment tax report with evidence of payment of BOTH FEDERAL AND STATE
TAXES.
10. ESCROW ACCOUNTS. Are you utilizing your tax account only for deposits
and payment of payroll and sales taxes? Yes No . N/A
----- ------
If no, explain:
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11. Are all BOOKS AND RECORDS of the debtor(s) being maintained monthly
and are all current? Yes X No .
----------- --------
Explain:
--------------------------------------------
12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are:
Auto and Truck Liability May 26, 2002
------------- ------------------
Fire Workers Comp May 26, 2002
----------------- ---------------
13. ACTIONS OF THE DEBTOR. During the last month, did the debtor:
(A) Fail to defend or not oppose any action seeking to dispossess
the debtor from control or custody of any asset of the estate?
Yes X No .
-------- --------
Explain:
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(B) Maintain such stock, inventory, raw materials, insurance,
employees and other resources as are necessary to preserve and maintain
the going-concern value of the assets of the debtor? Yes X No .
------- -----
Explain:
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14. TRANSFER OR SALE OF PROPERTY. Did the debtor or any person with
control over any of the debtor's assets transfer, convey or abandon any of the
debtor's assets to another party during the period of this report other than as
set forth herein (including sales by creditors)?
Yes No X . Explain:
--------------- ------------ ---------------------------------
15. PAYMENTS TO SECURED CREDITORS during reporting period:
(Attach additional sheets, if necessary)
- ------------------ ---------------------- --------------- ----------------- ------------------------
Frequency of Payments Amount of Each Next Payment Due
Creditor per Contract (mo, qtr) Payment Post-Petition
Payments Not Made
- ------------------ ---------------------- --------------- ----------------- ------------- ----------
No. Amt.
-0-
- ------------------ ---------------------- --------------- ----------------- ------------- ----------
16. PAYMENTS TO PROFESSIONALS (Attorneys, Accountants, Real Estate Agents,
Auctioneers, Appraisers, etc.) during reporting period:
(Attach additional sheets, if necessary.)
- ------------------------ ------------------------- --------------------------
Professional Service Amount
- ------------------------ ------------------------- --------------------------
-0-
- ------------------------ ------------------------- --------------------------
17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $-0-
18. VERIFICATION: I declare under penalty of perjury that the
information contained in this monthly operating report (including attached
schedules) is true and correct to the best of my knowledge, information and
belief.
Dated: 6-20-2001 DEBTOR-IN-POSSESSION
-----------------------------------
Name/Title James M. Craig By /S/ James M. Craig
-------------------------------- -------------------------
Address: 11720 Sunrise Valley Drive
------------------------------------
Reston, Virginia Phone 703-390-1000
- -------------------------------------------- ------------------------
# 2 PREPARER
Jeff Clincy
Staff Accountant/Fixed asset Accountant
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
Najma Khan
Director, Taxation and External Reporting
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
Michael Kinsley
Tax Supervisor
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
Todd Morgan
Staff Accountant/Inter-Company Analyst
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF VIRGINIA
In re: Pathnet Operating, Inc CASE NO. BK-01-12266
REPORTING PERIOD: MAY 31, 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.
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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
Statement of Operations MOR-2 yes
Balance Sheet MOR-3 yes
Status of Postpetition Taxes MOR-4 yes
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 yes
Listing of aged accounts payable yes
Accounts Receivable Reconciliation and Aging MOR-5 yes
Debtor Questionnaire MOR-5 yes
- ---------------------------------------------------------------------------------------------------------------------------
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 06-20-01
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
(9/99)
IN RE: PATHNET OPERATING INC CASE NO. BK-01-12266
Debtor REPORTING PERIOD: MAY 31, 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 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 (CON'T)]
- ---------------------------------------------------------------------------------------------------------------------------
BANK ACCOUNTS CURRENT MONTH CUMULATIVE FILING TO DATE
OPER. PAYROLL TAX OTHER ACTUAL PROJECTED ACTUAL PROJECTED*
CASH BEGINNING OF MONTH 1,511,353 -210,756 12,995,128 14,295,725 11,773,867 13,182,300 13,182,300
--------- --------- ------- ---------- ----------- ----------- ------------- ------------
RECEIPTS
CASH SALES 0 0 0
ACCOUNTS RECEIVABLE 532,330 532,330 207,628 1,404,320 964,241
LOANS AND ADVANCES 0 0 0
SALE OF ASSETS 0 0 0
OTHER -TRANSFER FROM PNI 527,437 527,437 15,320 0
TRANSFERS from checking/
Investment 2,000,000 2,000,000 8,000,000 0
ADJUSTMENTS 0 117,961 0
VOID CHECKS 0 48,509 0
INTEREST INCOME 26,613 26,613 102,712 91,821 102,712
--------- --------- ------- ---------- ----------- ----------- ------------- ------------
TOTAL RECEIPTS 3,059,767 0 0 26,613 3,086,381 310,340 9,677,932 1,066,953
--------- --------- ------- ---------- ----------- ----------- ------------- ------------
DISBURSEMENTS
NET PAYROLL 0 0 0
PAYROLL TAXES 0 0 0
SALES, USE, & OTHER TAXES 0 0 0
INVENTORY PURCHASES 0 0 0
SECURED/ RENTAL/ LEASES -2,518,829 -2,518,829 -2,664,930 -2,518,829 -3,998,362
INSURANCE 0 0 0
ADMINISTRATIVE *** -22,218 -1,667 -23,885 -245,000 -29,448 -367,500
SELLING 0 0 0
OTHER - BANK FEES -23,843 -23,843 -2,625,000 -23,843 -2,625,000
INTERCOMPANY SERVICES -1,402,293 -1,402,293 -2,010,000 -1,402,293 -2,643,114
CAPITAL EXPENDITURES -100,000 -176,000
OWNER DRAW ** 0 0 0
TRANSFERS - to investments -2,000,000 -2,000,000 -8,000,000 0
TRANSFERS - to 0 0 0
PROFESSIONAL FEES 0 0 0
EMPLOYEE RETENTION PLAN -1,125,000 0 -1,125,000
U.S. TRUSTEE QUARTERLY FEES 0 0 0
COURT COSTS 0 0 0
--------- --------- ------- ---------- ----------- ----------- ------------- ------------
TOTAL DISBURSEMENTS -2,564,890 -1,667 -3,402,293 -5,968,850 -8,769,930 -11,974,413 -10,934,976
--------- --------- ------- ---------- ----------- ----------- ------------- ------------
NET CASH FLOW 494,878 -1,667 -3,375,680 -2,882,469 -8,459,590 -2,296,481 -9,868,023
(RECEIPTS LESS DISBURSEMENTS)
--------- --------- ------- ---------- ----------- ----------- ------------- ------------
CASH - END OF MONTH 2,006,231 -212,423 9,619,448 11,413,256 3,314,277 11,413,256 3,314,277
--------- --------- ------- ---------- ----------- ----------- ------------- ------------
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* THE BEGINNING PROJECTED CASH BALANCE AT THE FILING DATE IS THE ACTUAL CASH BALANCE AT APRIL 2, 2001. PROJECTED CASH
INFLOWS AND OUTFLOWS ARE BASED ON THE CASH FORECAST PROVIDED TO THE TRUSTEE WITH THE INITIAL MONTHLY OPERATING REPORT.
** 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 $
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 $
- ---------------------------------------------------------------------------------------------------------------------------
FORM MOR-1
(9/99)
*** represents no cash disbursement, all funds disbursed from Pathnet Inc payroll activity
In re: Pathnet Operating Inc Case No. BK-01-12266
Debtor Reporting Period: MAY 31, 2001
BANK RECONCILIATIONS
CONTINUATION SHEET FOR MOR-1
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 Ch. # Amount Ck. # Amount Ck. # Amount
- ---------------------------------------------------------------------------------------------------------------------------
OTHER
FORM MOR-1 (CON'T)
(9/99)
In re: Pathnet Operating Inc
Debtor Reporting Period.: MAY 31, 2001
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.
- ---------------------------------------------------------------------------------------------------------------------------
CUMULATIVE
REVENUES MONTH FILING TO DATE
Gross Revenues 607,160 1,056,847
Less: Returns and Allowances -
---------- -----------
Net Revenue 607,160 1,056,847
---------- -----------
COST OF GOODS SOLD
Beginning Inventory
Add: Purchases
Add: Cost of Labor
Add: Other Costs (attach schedule) 2,348,165 3,966,103
Less: Ending Inventory
Cost of Goods Sold
Gross Profit (1,741,005) (2,909,256)
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) 1,711,456 2,673,558
---------- -----------
Total Operating Expenses Before Depreciation 1,711,456 2,673,558
Depreciation/Depletion/Amortization 1,487,623 2,975,246
---------- -----------
Net Profit (Loss) Before Other Income & Expenses (4,940,084) (8,558,060)
OTHER INCOME AND EXPENSES
Other Income (attach schedule) 49,089 92,521
Interest Expense (736,556) (1,451,903)
Other Expense (attach schedule) (60,000) (104,680)
---------- -----------
Net Profit (Loss) Before Reorganization Items (5,687,551) (10,022,122)
REORGANIZATION ITEMS
Professional Fees 500,000 1,000,000
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 500,000 1,000,000
Income Taxes
---------- -----------
Net Profit (Loss) (6,187,551) (11,022,122)
---------- -----------
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*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-2
(9/99)
In re: Pathnet Operating Inc Case No: BK-01-012266
Debtor Reporting Period: MAY 31, 2001
STATEMENT OF OPERATIONS - CONTINUATION SHEET
- ---------------------------------------------------------------------------------------------------------------------------
CUMULATIVE
BREAKDOWN OF "OTHER" CATEGORY MONTH FILING TO DATE
OTHER COSTS
Lease expense, Cost alliance program, LEC Access charges 2,038,138 1,373,624
Network maintenance 90,857 78,522
Warehousing costs 21,450 18,898
Head End Connection 21,803 15,585
Utility charges 4,389 5,358
Intercompany allocations - network management - cost of sales 171,528 126,651
---------- -----------
TOTAL 2,348,165 1,618,638
---------- -----------
OTHER OPERATIONAL EXPENSES
Bank charges 0 111
Office supplies 0 -32
General and administrative expenses (intercompany allocations) 1,707,311 2,670,746
Licenses and fees 4,145 2,734
---------- -----------
TOTAL 1,711,456 2,673,559
---------- -----------
OTHER INCOME
Interest income 49,089 92,521
---------- -----------
TOTAL 49,089 92,521
---------- -----------
OTHER EXPENSES
Bad debt reserve 20,000 40,000
PPE reserve 40,000 80,000
PGE write off adjustment -15,320
---------- -----------
60,000 104,680
---------- -----------
OTHER REORGANIZATION EXPENSES
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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 Operating Inc Case No. BK-01-12266
Debtor Reporting Period: MAY 31, 2001
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition
liabilities must be classified separately from postpetition obligations.
- ------------------------------------------------------------------------------------------------------------------------
ASSETS BOOK VALUE AT BOOK VALUE
END OF CURRENT ON PETITION
REPORTING MONTH DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents 11,413,256 13,182,300
Restricted Cash and Cash Equivalents (see continuation sheet) 737,428 764,619
Accounts Receivable (Net) 2,833,863 3,518,969
Notes Receivable
Inventories
Prepaid Expenses 109,072 110,978
Professional Retainers 806,190 806,190
Other Current Assets (attach schedule) 49,077 52,505
------------- -------------
TOTAL CURRENT ASSETS 15,948,886 18,435,561
------------- -------------
PROPERTY AND EQUIPMENT
Real Property and Network Assets 218,078,462 217,534,241
Machinery and Equipment
Furniture, Fixtures and Office Equipment
Leasehold Improvements
Vehicles
Less Accumulated Depreciation (9,084,966) (6,109,720)
------------- -------------
TOTAL PROPERTY & EQUIPMENT 208,993,496 $ 211,424,521
------------- -------------
OTHER ASSETS
Loans to Insiders*
Other Assets (attach schedule) 7,948,795 8,106,883
------------- -------------
TOTAL OTHER ASSETS 7,948,795 8,106,883
------------- -------------
TOTAL ASSETS 232,891,177 237,966,965
============= ============
LIABILITIES AND OWNER EQUITY BOOK VALUE AT BOOK VALUE
END OF CURRENT ON PETITION
REPORTING MONTH DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable 1,266,662
Taxes Payable (refer to FORM MOR-4) 17,904
Wages Payable
Notes Payable
Rent / Leases - Building/Equipment 65,862
Secured Debt / Adequate Protection Payments 1,293,814
Professional Fees 1,000,000
Amounts Due to Insiders* 618,522 0
Other Postpetition Liabilities (attach schedule) 161,171 0
------------ ------------
TOTAL POSTPETITION LIABILITIES 4,423,935 0
------------ ------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 72,307,506 72,307,506
Priority Debt
Unsecured Debt 41,336,760 40,038,028
Deferred Revenue 5,052,648 4,828,981
Amounts Due to Insiders* 2,766,799 2,766,799
------------ ------------
TOTAL PRE-PETITION LIABILITIES 121,463,713 119,941,314
------------ ------------
TOTAL LIABILITIES 125,887,648 119,941,314
------------ ------------
OWNER EQUITY
Capital Stock 1 1
Additional Paid-In Capital
Partners' Capital Account
Owner's Equity Account
Retained Earnings - Pre-Petition 118,025,650 118,025,650
Retained Earnings - Postpetition (11,022,122)
Adjustments to Owner Equity (attach schedule)
Postpetition Contributions (Distributions) (Draws) (attach schedule)
NET OWNER EQUITY 107,003,529 118,025,651
------------ ------------
TOTAL LIABILITIES AND OWNERS' EQUITY 232,891,177 237,966,965
============ ============
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FORM MOR-3
*"Insider" is defined in 11 U.S.C. Section 101(31). (9/99)
Certain reclassification of 10Q amounts have been made to conform to MOR reporting
In re: Pathnet Operating Inc Case No. BK-01-12266
Debtor Reporting Period: MAY 31, 2001
BALANCE SHEET - CONTINUATION SHEET
- ------------------------------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
Other Current Assets
Interest receivable 49,077 52,505
Other Assets
Financing costs - net 2,966,320 3,124,408
ROW Intangibles 4,982,475 4,982,475
----------- -----------
7,948,795 8,106,883
----------- -----------
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
Other Postpetition Liabilities
Accrued Maintenance 150,000
Other taxes and fees 11,171
-----------
161,171
-----------
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 Operating Inc Case No. BK-01-12264
Debtor Reporting Period: MAY 31, 2001
STATUS OF POSTPETITION TAXES
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 - 17,416 -324 17,092
Excise 0
Unemployment 0
Real Property 0
Personal Property 100 -100 0
Other:_________________ 8,465 -7,653 812
--------- ----------- -------- -------
Total State and Local 25,981 -8,077 17,904
--------- ----------- -------- -------
TOTAL TAXES 25,981 17,904
--------- ----------- -------- -------
- ------------------------------------------------------------------------------------------------------------------------
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 471,316 795,346 1,266,662
Wages Payable
Taxes Payable 17,684 220 17,904
Rent/Leases-Building 52,505 13,357 65,862
Rent/Leases-Equipment 0
Secured Debt/Adequate Protection Payments 657,512 636,302 1,293,814
Professional Fees 500,000 500,000 1,000,000
Amounts Due to Insiders* 618,522 618,522
Other:__________________________ 86,171 75,000 161,171
Other:__________________________
--------- --------- ---------
TOTAL POSTPETITION DEBTS 2,403,710 2,020,225 4,423,935
--------- --------- ---------
- ------------------------------------------------------------------------------------------------------------------------
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 Operating Inc Case No: BK 01-12264
Debtor Reporting Period: MAY 31, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
- ------------------------------------------------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE RECONCILIATION AMOUNT
Total Accounts Receivable at the beginning of the reporting period $2,901,969
+ Amounts billed during the period $650,928
- - Amounts collected during the period $619,033 *
----------
Total Accounts Receivable at the end of the reporting period $2,933,863
----------
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT
0 - 30 days old $126,381
31 - 60 days old $13,463
61 - 90 days old $2,211,121
91+ days old $582,898
Total Accounts Receivable $2,933,863
Amount considered uncollectible (Bad Debt) 100,000
Accounts Receivable (Net) $2,833,863
* - includes $86,703 adjusted via intercompany account and actual cash received of $532,330.
- ------------------------------------------------------------------------------------------------------------------------
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. X
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. X
3. Have all postpetition tax returns been timely filed? If no, provide an explanation
below. X
4. Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below. X
- ------------------------------------------------------------------------------------------------------------------------
SEE NOTE ON PATHNET, INC MOR-5
FORM MOR-5
(9/99)
