Exhibit 99.2
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MICHIGAN
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED:April 30, 2012
| In re: United Solar Ovonic LLC | Case Number: 12-43167 | |
| Chapter 11 | ||
| Judge: Hon. Thomas J. Tucker | ||
Debtor. | ||
United Solar Ovonic LLC/
As debtor in possession, I affirm:
| 1. | That I have reviewed the financial statements attached hereto, consisting of: |
| Operating Statement | (Form 2) | ||
| Balance Sheet | (Form 3) | ||
| Summary of Operations | (Form 4) | ||
| Monthly Cash Statement | (Form 5) | ||
| Statement of Compensation | (Form 6) | ||
| Schedule of In-Force Insurance | (Form 7) |
and that they have been prepared in accordance with normal and customary accounting practices, and fairly and accurately reflect the debtor’s financial activity for the period stated;
| 2. | That the insurance, including workers’ compensation and unemployment insurance, as described in Section 5 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases, is in effect; and |
| (If not, attach a written explanation) | YES x | NO¨ |
| 3. | That all post-petition taxes as described in Section 9 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases are current. |
| (If not, attach a written explanation) | YES x | NO¨ |
| 4. | No professional fees (attorney, accountant, etc.) have been paid without specific court authorization. |
| (If not, attach a written explanation) | YES x | NO¨ |
| 5. | All United States Trustee Quarterly fees have been paid and are current. |
| YES x | NO¨ |
| 6. | Have you filed your pre-petition tax returns? |
| (If not, attach a written explanation) | YES x | NO¨ |
I hereby certify, under penalty of perjury, that the information provided above and in the attached documents is true and correct to the best of my information and belief.
| Dated:May 21, 2012 | United Solar Ovonic LLC | |||||
| Debtor in Possession | ||||||
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| Title: | William C. Andrews | |||||
| Chief Financial Officer Phone: 248-299-6047 | ||||||
Form 1
OPERATING STATEMENT (P&L)(1)
Period Ending:April 30, 2012
Case No: 12-43167
| Current Month | Total Since Filing | |||||||
Total Revenue | $ | 1,578,065 | $ | 8,577,785 | ||||
Cost of Sales(2) | 4,238,044 | 14,657,021 | ||||||
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GROSS PROFIT | (2,659,978 | ) | (6,079,236 | ) | ||||
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EXPENSES: | ||||||||
Officer Compensation | 26,667 | 66,667 | ||||||
Salary/Wages Expenses | 878,348 | 1,929,611 | ||||||
Employee Benefits & Pensions | 323,011 | 667,924 | ||||||
Payroll Taxes | 104,589 | 234,579 | ||||||
Other Taxes | 15,922 | 28,427 | ||||||
Rent and Lease Expense | 212,059 | 502,655 | ||||||
Interest Expense(3) | 2,170,969 | 5,477,837 | ||||||
Property Insurance | 1,054 | 2,685 | ||||||
Automobile and Truck Expense | — | — | ||||||
Utilities | 33,380 | 71,897 | ||||||
Depreciation | 22,353 | 57,549 | ||||||
Travel and Entertainment | 23,790 | 63,049 | ||||||
Repairs and Maintenance | 13,377 | 16,295 | ||||||
Advertising | — | — | ||||||
Other – Miscellaneous | 676,637 | 1,309,368 | ||||||
Other – (Gain) Loss on Asset Disposal(5) | (8,495,932 | ) | (7,049,242 | ) | ||||
Other Specify – European Costs | 238,360 | 626,875 | ||||||
Other Specify – Restructuring(6) | 1,913,363 | 2,276,805 | ||||||
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TOTAL EXPENSES: | (1,842,051 | ) | 6,282,979 | |||||
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OPERATING PROFIT | (817,927 | ) | (12,362,216 | ) | ||||
Add: Non-Operating Income | ||||||||
Total Interest Income | — | — | ||||||
Other (Income) / Expense | 226,217 | 361,798 | ||||||
Less: Non-Operating Expenses | ||||||||
Professional Fees(4) | 856,000 | 2,302,000 | ||||||
Other – Income Taxes | — | (216,206 | ) | |||||
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NET INCOME/(LOSS) | $ | (1,900,144 | ) | $ | (14,809,807 | ) | ||
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| (1) | The operating statement and balance sheet were prepared using accrual accounting. |
| (2) | Product sold during this period had an inventory value of $1,736,919. The balance of cost of sales is unabsorbed variance due to the production shutdown. |
| (3) | The effective annual interest rate for April 30, 2012 was 10.2%. |
| (4) | Professional fees are estimates. |
| (5) | Primarily included gain on rejection of lease. |
| (6) | Severance accrual for employees to be terminated. |
Form 2
BALANCE SHEET
Period Ending:April 30, 2012
Case No: 12-43167
| Current Month | Prior Month | At Filing | ||||||||||
ASSETS: | ||||||||||||
Cash and Cash Equivalents | $ | 11,721,600 | $ | 5,420,063 | $ | 4,378,158 | ||||||
Investments | — | — | — | |||||||||
Inventories, Net | 33,539,728 | 35,298,334 | 41,727,690 | |||||||||
Accounts Receivable – Intercompany – USO CDN | 1,648,063 | 1,773,987 | 1,788,754 | |||||||||
Accounts Receivable Intercompany SIT | 23,507,313 | 23,502,505 | 23,497,597 | |||||||||
Accounts Receivable Trade – Net | 6,388,046 | 12,451,980 | 10,597,737 | |||||||||
Land and Buildings | 17,517,111 | 24,397,111 | 29,010,567 | |||||||||
Furniture, Fixtures & Equipment | 36,347,118 | 36,981,610 | 39,525,325 | |||||||||
Accumulated Depreciation | (7,285,109 | ) | (7,747,471 | ) | (12,471,130 | ) | ||||||
Restricted Cash | 4,374,728 | 4,374,728 | 5,950,000 | |||||||||
Prepaid | 794,253 | 742,863 | 664,094 | |||||||||
Investment in Subsidiaries | 3,242,929 | 3,337,474 | 3,064,408 | |||||||||
Other Assets | 2,517,018 | 2,473,455 | 2,053,060 | |||||||||
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TOTAL ASSETS | $ | 134,312,799 | $ | 143,006,640 | $ | 149,786,260 | ||||||
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LIABILITIES: | ||||||||||||
Post-petition Liabilities: | ||||||||||||
Accounts Payable Trade – Net | $ | 273,925 | $ | 199,135 | $ | — | ||||||
Accounts Payable Intercompany ECD | 85,302 | — | — | |||||||||
Accounts Payable Intercompany USO EU | 186,552 | 214,581 | — | |||||||||
Accounts Payable Intercompany USO Mexico | 1,112,646 | — | — | |||||||||
Lease Payable | — | — | — | |||||||||
Warranty | 118,089 | 119,244 | — | |||||||||
Other Current Liabilities | 2,069,228 | 493,950 | — | |||||||||
Accrued Salaries and Wages | 354,188 | 283,298 | — | |||||||||
Accrued Taxes | 285,739 | 209,800 | — | |||||||||
Accrued Other | 2,325,972 | 1,368,165 | — | |||||||||
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TOTAL Post-petition Liabilities | 6,811,642 | 2,888,172 | — | |||||||||
Secured Liabilities: | ||||||||||||
Secured Loan – ECD | 5,000,000 | 5,000,000 | 5,000,000 | |||||||||
Pre-petition Liabilities: | ||||||||||||
Accounts Payable Trade – Net | 7,227,522 | 7,227,522 | 7,227,522 | |||||||||
Accounts Payable Intercompany ECD | 797,596,837 | 795,485,836 | 792,119,291 | |||||||||
Accounts Payable Intercompany SIT | 600,241 | 600,241 | 600,241 | |||||||||
Accounts Payable Intercompany Mexico | 1,704,449 | — | — | |||||||||
Accounts Payable Unsecured Liabilities | — | — | — | |||||||||
Lease Payable | 4,926,455 | 19,502,614 | 19,627,288 | |||||||||
Warranty | 10,176,836 | 10,176,836 | 10,176,836 | |||||||||
Other Current Liabilities | 637,324 | 637,324 | 637,324 | |||||||||
Accrued Salaries and Wages | 677,100 | 677,100 | 677,100 | |||||||||
Accrued Taxes | 636,431 | 636,431 | 636,431 | |||||||||
Accrued Other | 4,331,705 | 4,331,705 | 4,331,705 | |||||||||
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TOTAL Pre-petition Liabilities | 828,514,900 | 839,275,609 | 836,033,739 | |||||||||
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TOTAL LIABILITIES | 840,326,542 | 847,163,781 | 841,033,739 | |||||||||
EQUITY: | ||||||||||||
Owners Capital | 65,000,000 | 65,000,000 | 65,000,000 | |||||||||
Additional Paid-In-Capital | (27,351,380 | ) | (27,351,380 | ) | (27,351,380 | ) | ||||||
Retained Earnings-Pre Petition | (728,852,555 | ) | (728,896,099 | ) | (728,896,099 | ) | ||||||
Retained Earnings-Post Petition | (14,809,807 | ) | (12,909,663 | ) | — | |||||||
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TOTAL EQUITY | (706,013,742 | ) | (704,157,142 | ) | (691,247,479 | ) | ||||||
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TOTAL LIABILITIES AND EQUITY | $ | 134,312,799 | $ | 143,006,640 | $ | 149,786,260 | ||||||
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Form 3
SUMMARY OF OPERATIONS
Period Ended:April 30, 2012
Case No: 12-43167
Schedule of Post-petition Taxes Payable
| Beginning Balance | Accrued/ Withheld | Payments/ Deposits | Ending Balance | |||||||||||||
Income Taxes Withheld | ||||||||||||||||
Federal | — | $ | 220,648.50 | $ | 220,648.50 | — | ||||||||||
State | — | 64,468.88 | 64,468.88 | — | ||||||||||||
Local | — | 72.15 | 72.15 | — | ||||||||||||
FICA Withheld | — | 82,555.97 | 82,555.97 | — | ||||||||||||
Employers FICA | — | 113,848.35 | 113,848.35 | — | ||||||||||||
Unemployment Tax | ||||||||||||||||
Federal | — | 301.67 | 301.67 | — | ||||||||||||
State | — | 7,538.21 | 7,538.21 | — | ||||||||||||
Sales, Use & Excise Taxes | $ | 93,178.00 | 391.00 | — | $ | 93,569.00 | ||||||||||
Property Taxes | 116,621.00 | 75,548.00 | — | 192,170.00 | ||||||||||||
Workers’ Compensation(1) | — | — | — | — | ||||||||||||
Other | — | — | — | — | ||||||||||||
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TOTALS | $ | 209,799.00 | $ | 565,372.73 | $ | 489,433.73 | $ | 285,739.00 | ||||||||
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| (1) | Fully insured. |
AGING OF ACCOUNTS RECEIVABLE
AND POST-PETITION ACCOUNTS PAYABLE
| Age in Days | 0-30 | 31-60 | Over 60 | |||||||||
Post Petition | ||||||||||||
Accounts Payable | $ | 254,720.75 | $ | 6,322.78 | $ | 12,881.90 | ||||||
Accounts Receivable | $ | 2,703,518.40 | $ | 1,173,268.50 | $ | 2,511,259.10 | ||||||
For all post-petition accounts payable over 30 days old, please attach a sheet listing each such account, to whom the account is owed, the date the account was opened, and the reason for non-payment of the account.
Describe events or factors occurring during this reporting period materially affecting operations and formulation of a Plan of Reorganization:None
Form 4
MONTHLY CASH STATEMENT
Period Ending:April 30, 2012
| Cash Activity Analysis (Cash Basis Only): | Case No: 12-43167 |
| General Account | Foreign Collection Account(2) | L/C Collateral Account | Canadian Payroll Account(1) | Petty Cash | ||||||||||||||||||
A. | Beginning Balance | $ | 5,706,639.20 | $ | — | $ | 4,374,728.04 | $ | 3,836.30 | $ | 803.29 | |||||||||||
B. | Receipts | 10,380,666.32 | — | — | 20,000.00 | 0.88 | ||||||||||||||||
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(Attach separate schedule) | ||||||||||||||||||||||
C. | Balance Available | 16,087,305.52 | — | 4,374,728.04 | 23,836.30 | 804.17 | ||||||||||||||||
(A+B) | ||||||||||||||||||||||
D. | Less Disbursements | 4,085,944.76 | — | — | 20,014.93 | — | ||||||||||||||||
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(Attach separate schedule) | ||||||||||||||||||||||
E. | ENDING BALANCE | $ | 12,001,360.76 | $ | — | $ | 4,374,728.04 | $ | 3,821.37 | $ | 804.17 | |||||||||||
(C-D) | ||||||||||||||||||||||
| (1) | In Canadian Dollars |
| (2) | Account Closed 3/14/12 |
ATTENTION: Please enter the TOTAL DISBURSEMENT from all your accounts, including cash and excluding transfers, onto the line below. This is the number that will determine your quarterly fee payment:$4,105,959.69
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH ACCOUNT)
General Account:
| 1. | Depository Name & Location | JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan | ||
| 2. | Account Number | |||
Foreign Collection Account: (account closed 3/14/12) | ||||
| 1. | Depository Name & Location | JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan | ||
| 2. | Account Number | |||
L/C Collateral Account: | ||||
| 1. | Depository Name & Location | JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan | ||
| 2. | Account Number | |||
Canadian Payroll Account: | ||||
| 1. | Depository Name & Location | JP Morgan Chase Bank, N.A. Canada; Toronto, Ontario, Canada | ||
| 2. | Account Number | |||
Other monies on hand (specify type and location) i.e., CD’s, bonds, etc.):
None
Date:May 21, 2012
United Solar Ovonic LLC |
| Debtor in Possession |
Form 5
MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS
Period Ending:April 30, 2012
Case No: 12-43167
The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)
| Name: | Joseph P. Conroy, Executive Vice President, ECD; | Capacity: | x | Shareholder | ||||||
Senior Vice President, USO Operations | x | Officer | ||||||||
| ¨ | Director | |||||||||
| x | Insider |
Detailed Description of Duties:
| • | Provides leadership to all operations and manufacturing related activity (Auburn Hills, Greenville 1&2, Tijuana, China JV and Marcegaglia) |
| • | Responsible for building new equipment to support the company’s technology efforts |
| • | Provides leadership to all manufacturing, engineering, quality functions (ensures the production of all manufacturing products) |
Current Compensation Paid: | Weekly | Or | Monthly | |||||||||
| $ | 26,666.68 | |||||||||||
Current Benefits Paid: | Weekly | Or | Monthly | |||||||||
Health Insurance | $ | 849.92 | ||||||||||
Life Insurance | 72.15 | |||||||||||
Accidental Death & Dismemberment Insurance | 9.62 | |||||||||||
Long-Term and Short-Term Disability Insurance | 72.50 | |||||||||||
Employee Assistance Program | 1.69 | |||||||||||
Retirement | — | |||||||||||
Company Vehicle | 417.36 | |||||||||||
Entertainment | — | |||||||||||
Travel | 3,626.52 | |||||||||||
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Total Benefits | $ | 5,049.76 | ||||||||||
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Current Other Payments Paid: | Weekly | Or | Monthly | |||||||||
Rent Paid | ||||||||||||
Loans | ||||||||||||
Other (Describe) | ||||||||||||
Other (Describe) | ||||||||||||
Other (Describe) | ||||||||||||
Total Other Payments | ||||||||||||
| Weekly | Or | Monthly | ||||||||||
CURRENT TOTAL OF ALL PAYMENTS: | $ | 31,716.44 | ||||||||||
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(1)
| Dated:May 21, 2012 | Joseph P. Conroy |
Form 6
SCHEDULE OF IN-FORCE INSURANCE
Period Ending:April 30, 2012
Case No: 12-43167
INSURANCE TYPE | CARRIER | EXPIRATION DATE | ||
Workers’ Compensation | Valley Forge Insurance Company | 02/01/2013 | ||
Workers’ Compensation | American Casualty Company of Reading PA | 02/01/2013 | ||
General Liability | American Casualty Company of Reading PA | 02/01/2013 | ||
Property (1st Layer) | Allianz Global Risk US Insurance Company | 02/01/2013 | ||
Property (2nd Layer) | Lexington Insurance Company | 02/01/2013 | ||
Automobile Policy | Continental Casualty Company | 02/01/2013 | ||
Umbrella Policy | Continental Casualty Company | 02/01/2013 | ||
Foreign Package | Continental Casualty Company | 02/01/2013 | ||
Special Risk Coverage | Great American Insurance Company | 03/18/2013 | ||
Directors & Officers | Allied World National Assurance Company | 09/30/2012 | ||
Directors & Officers | Illinois National Insurance Company | 09/30/2012 | ||
Directors & Officers | Beazley Insurance Company, Inc. (Lloyd’s of London) | 09/30/2012 | ||
Employee Practices Liability | Starr Indemnity & Liability Company | 09/30/2012 | ||
Fiduciary Liability | Starr Indemnity & Liability Company | 09/30/2012 | ||
Fidelity Bond | Starr Indemnity & Liability Company | 09/30/2012 | ||
Primary Directors & Officers | Starr Indemnity & Liability Company | 09/30/2012 | ||
ERISA Bond | Travelers Casualty and Surety Company of America | 11/16/2014 | ||
Pollution Liability Coverage | Chartis Specialty Insurance | 02/01/2014 | ||
Form 7