UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF VIRGINIA
____________________ DIVISION
In Re: PATHNET, INC. ) Chapter 11
)
Case Number BK-01-12265
DEBTOR(S) )
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MONTHLY OPERATING REPORT Calendar Month June 1, 2001 to June 30, 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: 144
4. Have there been any CHANGES IN THE NATURE OF YOUR BUSINESS since the
last reporting period? Yes No X
------------ ------------ .
If yes, explain below:
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5. Are all BUSINESS LICENSES current? Yes No X Not Applicable
6. PRE-PETITION ACCOUNTS RECEIVABLE:
Beginning Balance $ 1,555,121
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Collected this Period (10,384)
Ending Balance 1,544,737
7. POST-PETITION ACCOUNTS RECEIVABLE:
0-30 Days: $ 197,320 31-60 Days: $ 597,752 Over 60 Days: $680,589
--------- --------- --------
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: $ 827,588 31-60 Days: $ 321,807 Over 60 Days: $531,084
--------- -------- --------
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 ATTACHMENT
9. TAXES Are all taxes being paid to the proper taxing authorities when
due? Yes No X , On the attached
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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
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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 .
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Explain:
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12. INSURANCE EXPIRATION STATEMENT. Policy expiration dates are:
Auto and TruckMay 26, 2002 Liability May 26, 2002
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Fire Workers Comp May 26, 2002
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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 No X .
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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:
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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
- ------------------------ ------------------------- --------------------------
Covington & Burling Legal 148,032.81
Policano & Manzo. LLC Consulting 121,225.05
Houlihan Lockey Howard & Zukin Legal 51,419.06
- ------------------------ ------------------------- --------------------------
17. QUARTERLY U.S. TRUSTEE FEES paid during reporting period: $
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: 7-18-01 DEBTOR-IN-POSSESSION
-----------------------------------
Name/Title James M. Craig By /S/ James M. Craig
-------------------------------- -------------------------
Address: 11720 Sunrise Valley Drive
------------------------------------
Reston, Virginia, 20165 Phone 703-390-2801
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# 2 PREPARER
Najma Khan
Director, Taxation and External Reporting
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
Jeff Clincy
Staff Accountant/Fixed asset Accountant
11720 Sunrise Valley Drive
Reston, VA 20191
(703) 390-1000
EASTERN DISTRICT OF VIRGINIA
In re Pathnet Inc. CASE NO. BK-01-12265
REPORTING PERIOD: JUNE 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.
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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
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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.
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Signature of Debtor Date
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Signature of Joint Debtor Date
/s/ James M. Craig
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Signature of Authorized Individual* Date 7-18-01
James M. Craig
- --------------------------------------- CFO
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 INC. CASE NO. BK-01-12265
Debtor REPORTING PERIOD: JUNE 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 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)]
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BANK ACCOUNTS CURRENT MONTH CUMULATIVE FILING TO DATE
OPER. PAYROLL MEDICAL OTHER ACTUAL PROJECTED ACTUAL PROJECTED*
CASH BEGINNING OF MONTH 2,420,352 291,671 -54,388 3,599,081 6,256,715 7,636,111 7,956,042 7,956,042
---------- --------- -------- ----------- ----------- --------- ----------- ----------
RECEIPTS
CASH SALES 0
ACCOUNTS RECEIVABLE 79,832 79,832 199,737 880,678 831,723
LOANS AND ADVANCES 0 0 0
SALE OF ASSETS 0 0 0
OTHER DEPOSITS 13,588 7,815 21,403 237,535 2,874,000
TRANSFERS (Wires) 1,500,000 1,492,854 49,383 3,042,236 8,472,058 0
TRANSFER - KERP ACCOUNT 592,092 592,092 592,092 0
TRANSFERS (Wires)-LOC COLL 21,338 2,994,377 3,015,715 3,015,715 0
OTH (TRNSFR FROM MED. ESCROW) 91,668 91,668 133,327 0
VOIDS 1,094 1,094 260,387 0
INTERCOMPANY SERVICES 767,937 767,937 1,327,500 2,170,230 3,970,614
INTEREST INCOME 3,568 19,986 23,554 50,517 52,652 141,752
---------- --------- -------- ----------- ----------- --------- ----------- ----------
TOTAL RECEIPTS 2,386,263 2,084,946 149,959 3,014,363 7,635,531 1,577,754 15,814,674 7,818,089
---------- --------- -------- ----------- ----------- --------- ----------- ----------
DISBURSEMENTS
NET PAYROLL -1,043,700 -1,043,700 -1,570,000 -2,961,743 -3,611,000
PAYROLL TAXES -576,748 -576,748 0 -1,579,363 -1,099,000
SALES, USE, & OTHER TAXES 0 0 0 0
INVENTORY PURCHASES 0 0 0 0
SECURED/ RENTAL/ LEASES 0 -233,500 -111,746 -934,000
MEDICAL CLAIM PAYMENTS -92,144 -92,144 0 -174,284 0
ADMINISTRATIVE -494,706 -494,706 -423,303 -1,152,969 -1,476,569
SELLING 0 0 0 0
OTHER -103,559 -12,910 -10 -434 -116,913 0 -210,301 0
INTERCOMPANY SERVICES 0 0 0 0
CAPITAL EXPENDITURES 0 0 -16,500
OWNER DRAW ** 0 0 0 0
TRANSFERS (WIRE) -1,542,236 -1,500,000 -3,042,236 0 -8,527,073 0
OTHER-TRANSFER TO POI CR BAL -212,424 -212,424 0 -739,861 0
CONTINGENCY 0 -200,000 0 -600,000
PROFESSIONAL FEES -320,677 -320,677 -375,000 -320,677 -750,000
EMPLOYEE RETENTION PLAN -937,954 -937,954 0 -937,954 -875,000
U.S. TRUSTEE QUARTERLY FEES 0 0 0 0
COURT COSTS 0 0 0
---------- --------- -------- ----------- ----------- --------- ----------- ----------
TOTAL DISBURSEMENTS -3,399,132 -1,845,782 -92,154 -1,500,434 -6,837,502 -2,801,803 -16,715,972 -9,362,069
---------- --------- -------- ----------- ----------- --------- ----------- ----------
NET CASH FLOW -1,012,869 239,164 57,806 1,513,929 798,029 -1,224,049 -901,298 -1,543,980
(RECEIPTS LESS DISBURSEMENTS)
---------- --------- -------- ----------- ----------- --------- ----------- ----------
CASH - END OF MONTH 1,407,482 530,835 3,418 5,113,010 7,054,743 6,412,062 7,054,744 6,412,092
---------- --------- -------- ----------- ----------- --------- ----------- ----------
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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
*** TRANSFER FROM VARIOUS ESCROWS TO CHECKING ACCOUNT
THE FOLLOWING SECTION MUST BE COMPLETED
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DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS 6,837,502
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 6,837,502
----------
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FORM MOR-1
(9/99)
In re Pathnet Inc. Case No. BK-01-12665
Debtor Reporting Period: JUNE 30, 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.
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Operating Payroll Medical Other
BALANCE PER BOOKS
BANK BALANCE See Attachment
(+) 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
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OTHER
FORM MOR-1 (CON'T)
(9/99)
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period.: JUNE 30, 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.
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CUMULATIVE
REVENUES MONTH FILING TO DATE
Gross Revenues -242,305 1,502,533
Less: Returns and Allowances 0 0
---------- -----------
Net Revenue $ (242,305) $1,502,533
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COST OF GOODS SOLD
Beginning Inventory 0
Add: Purchases 0
Add: Cost of Labor 255,180 905,513
Add: Other Costs (attach schedule) 1,424,085 2,405,910
Less: Ending Inventory 0 0
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Cost of Goods Sold 1,679,265 3,311,891
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Gross Profit $(1,921,570) $(1,808,891)
OPERATING EXPENSES
Advertising -127,009 -127,009
Auto and Truck Expense
Bad Debts
Contributions
Employee Benefits Programs 271,431 648,535
Insider Compensation* 113,508 330,177
Insurance 22,917 114,341
KERP payments 409,700 409,700
Office Expense 9,871 39,490
Pension & Profit-Sharing Plans 0
Repairs and Maintenance 1,231 3,985
Rent and Lease Expense 38,108 330,500
Salaries/Commissions/Fees 764,568 2,782,953
Supplies 2,151 6,588
Taxes - Payroll 72,500 224,945
Taxes - Real Estate 200,000 600,000
Taxes - Other 2,606 64,518
Travel and Entertainment 85,880 157,979
Utilities 48,635 147,722
Other (attach schedule) 2,265,179 -112,345
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Total Operating Expenses Before Depreciation 4,181,276 5,622,079
Depreciation/Depletion/Amortization -282,475 -847,424
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Net Profit (Loss) Before Other Income & Expenses ($6,385,321) ($8,278,393)
OTHER INCOME AND EXPENSES
Other Income (attach schedule) 62,057 443,545
Interest Expense -268,573 -662,839
Other Expense (attach schedule) -173,261 -173,261
---------- -----------
Net Profit (Loss) Before Reorganization Items ($6,765,099) ($8,670,948)
REORGANIZATION ITEMS
Professional Fees 1,000,000 3,000,000
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 1,000,000 3,000,000
Income Taxes
---------- -----------
Net Profit (Loss) ($7,765,099) ($11,670,948)
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*"Insider" is defined in 11 U.S.C. Section 101(31).
FORM MOR-2
(9/99)
In re Pathnet Inc._ Case No. BK-01-12265
Debtor Reporting Period: JUNE 30, 2001
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STATEMENT OF OPERATIONS - CONTINUATION SHEET
CUMULATIVE
BREAKDOWN OF "OTHER" CATEGORY MONTH FILING TO DATE
OTHER COSTS
Lease expense (space, tower) & LEC Access charges 1,187,853 1,715,310
Maintenance 88,362 302,479
Utility* -50,573 240,977
Warehousing costs 0 5,880
Intercompany allocations 0 -298,179
Other Costs 198,444 439,444
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TOTAL 1,424,085 2,405,910
--------- ---------
OTHER OPERATIONAL EXPENSES
Cheap Stock Amortization 0 170,402
Intercompany Allocation for Services preformed for Pathnet Operating** 2,324,955 -345,790
Legal Expense/Accounting* -52,356 -57,043
Misc Expense* -69,171 -67,433
Temporary Services 19,075 46,547
Bank Charges 1,878 17,662
PPE Reserve 40,000 120,000
Dues and Subscriptions 798 3,311
--------- ---------
TOTAL 2,265,179 -112,345
--------- ---------
OTHER INCOME
Interest Income Texaco Escrow 1,002 3,461
Interest Income BN Escrow 10,001 34,544
Interest Income Bank of NY 1,095 1,804
Interest Income SunTrust investment account 45,208 145,456
Interest Income Wilmington Trust 4,752 9,793
Void Checks - other income 248,226
Sale of Computer 263
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TOTAL 62,057 443,545
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OTHER EXPENSES
Net write off of cash owed from POI for payroll (expenses reports) -173,261 -173,261
--------- ---------
TOTAL -173,261 -173,261
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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.
* - negative items generally relate to a reversal of an overprovision in
prior periods.
** - The interncompany allocation was formally based on revenue split. It has
been amended to reflect the apprived methodology. FORM MOR-2 (CON'T) (9/99)
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period: JUNE 30, 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.
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BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
CURRENT ASSETS
Unrestricted Cash and Equivalents 7,054,743 7,956,042
Restricted Cash and Cash Equivalents ** 8,985,631 10,895,450
Accounts Receivable (Net) 2,886,398 1,845,880
Notes Receivable
Inventories
Prepaid Expenses 593,605 649,520
Professional Retainers 600,000 600,000
Other Current Assets (attach schedule) 125,398 104,743
------------- ------------
TOTAL CURRENT ASSETS 20,245,775 22,051,635
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PROPERTY AND EQUIPMENT
Real Property and Improvements 15,521,338 15,739,608
Machinery and Equipment
Furniture, Fixtures and Office Equipment 7,658,127 7,634,119
Leasehold Improvements 993,290 993,290
Vehicles
Less Accumulated Depreciation -5,135,540 -4,288,116
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TOTAL PROPERTY & EQUIPMENT 19,037,215 20,078,901
------------- ------------
OTHER ASSETS
Loans to Insiders* 127,732,574 130,182,166
Other Assets (attach schedule) 14,166,138 14,607,731
------------- ------------
TOTAL OTHER ASSETS 141,898,712 144,789,897
------------- ------------
TOTAL ASSETS 181,181,702 186,920,433
============= ===========
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 1,680,478
Taxes Payable (refer to FORM MOR-4) 779,061
Wages Payable 63,970
Notes Payable
Rent / Leases - Building/Equipment 1,702
Secured Debt / Adequate Protection Payments
Professional Fees 2,679,323
Amounts Due to Insiders-Pathnet Operating, Inc. re KERP 528,254
Other Postpetition Liabilities (attach schedule) 108,707
------------- ------------
TOTAL POSTPETITION LIABILITIES 5,841,495
LIABILITIES SUBJECT TO COMPROMISE (PRE-PETITION)
Secured Debt
Priority Debt
Unsecured Debt 387,706,904 387,652,191
Deferred Expense 668,993 632,984
Loans from insiders 7,983,195 7,983,195
------------- ------------
TOTAL PRE-PETITION LIABILITIES 396,359,092 396,268,370
------------- ------------
TOTAL LIABILITIES 402,200,587 396,268,370
OWNER EQUITY
Capital Stock 188,423 188,423
Additional Paid-In Capital 42,076,261 42,076,261
Partners' Capital Account
Owner's Equity Account
Retained Earnings - Pre-Petition -251,612,621 -251,612,621
Retained Earnings - Postpetition -11,670,948
Adjustments to Owner Equity (attach schedule)
Postpetition Contributions (Distributions) (Draws) (attach schedule)
------------- ------------
NET OWNER EQUITY -221,018,885 -209,347,937
------------- ------------
TOTAL LIABILITIES AND OWNERS' EQUITY 181,181,702 186,920,433
============= ============
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. FORM MOR-3
* "Insider" is defined in 11 U.S.C. Section 101(31). (9/99)
** 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.
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period: JUNE 30, 2001
BALANCE SHEET - continuation sheet
- --------------------------------------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
Other Current Assets
Interest Receivable Suntrust Investment account 20,359 5,660
Employee Advances 4,945 3,377
Deposits 95,530 94,550
Due from Pathnet Operating, Inc. 2,502 0
Petty Cash 2,062 1,157
----------- ------------
Total 125,398 104,743
----------- ------------
Other Assets
Deferred Financing Costs 13,461,122 13,950,146
Deferred Income- KN 705,016 657,585
----------- ------------
Total 14,166,138 14,607,731
----------- ------------
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
Other Postpetition Liabilities
PSI Net Deposit 25,000 0
Garnishment payable 3,387
Flexible spending account 20,454
401K deferred compensation 27,130
State fees 32,736
----------- ------------
Total 108,707 0
----------- ------------
Adjustments to Owner Equity
Postpetition Contributions (Distributions) (Draws)
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FORM MOR-3 (CON'T) (9/99)
FORM MOR-3(CONT)
((9/99)
In re Pathnet Inc. Case No. BK-01-12265
Debtor Reporting Period: JUNE 30, 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.
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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 - -
Other: paid to ADP for total taxes due 711,687 -576,748 6/15 &6/30 eft 134,939
-------- --------- ---------- ---------
Total Federal Taxes 711,687 (576,748) 134,939
-------- --------- ---------- ---------
STATE AND LOCAL
Withholding - 6/15&6/30 eft
Sales 16,245 -7,181 (1,589) 7,475
Excise
Unemployment 5/15&5/31 eft
Real Property
Personal Property 376,029 205,059 (4,561) 576,527
Other: Income and Franchise taxes 60,085 972 (937) 60,120
-------- --------- ---------- ---------
Total State and Local 452,359 197,878 (7,087) 644,122
-------- --------- ---------- ---------
TOTAL TAXES 452,359 909,565 (583,835) 779,061
-------- --------- ---------- ---------
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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 827,588 321,807 511,083 1,680,478
Taxes Payable 197,878 581,183 779,061
Wages Payable-accrued 07/02 payroll net 63,970 63,970
Rent/Leases-Building 1,702 1,702
Rent/Leases-Equipment 0
Secured Debt/Adequate Protection Payments 0
Professional Fees 679,323 1,000,000 1,000,000 2,679,323
Amounts Due to Insiders - POI re KERP 528,254 528,254
Other:__________________________ 5,546 78,161 25,000 108,707
Other:__________________________ 0
---------- ---------- ---------- ----------- ----------- ---------
TOTAL POSTPETITION DEBTS 2,304,261 1,981,151 1,556,083 0 0 5,851,495
---------- ---------- ---------- ----------- ----------- ---------
- --------------------------------------------------------------------------------------------------------------------------------
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 Inc. Case No. BK-01-12265
Debtor Reporting Period: JUNE 30, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
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ACCOUNTS RECEIVABLE RECONCILIATION AMOUNT
Total Accounts Receivable at the beginning of the reporting period $3,355,488
+ Amounts billed during the period ($255,258)
- - Amounts collected during the period $79,832
----------
Total Accounts Receivable at the end of the reporting period $3,020,398
----------
ACCOUNTS RECEIVABLE AGING AMOUNT
0 - 30 days old $197,320
31 - 60 days old $597,752
61 - 90 days old $680,589
91+ days old $1,544,737
----------
Total Accounts Receivable $3,020,398
Amount considered uncollectible (Bad Debt) $134,000
----------
Accounts Receivable (Net) $2,886,398
----------
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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
- --------------------------------------------------------------------------------------------------------------------------------
A number of tax filings are pending, waiting for accounting information to be
made available or checks to be released.
FORM MOR-5
(9/99)
