UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE KII Liquidating Inc. (flkla In re Katy Industries, Inc.) Case No. 17-11101 (KJC) Reporting Period: August 27, 2017 to September 30,2017 MONTHLY OPERATING REPORT Document Explanation Affidavit/Supplement Attached Attached Attached REQUIRED DOCUMENTS Form No This Monthly Operating Report has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in theses chapter II cases and is in a format that the Debtors believe is acceptable to the Office of the United States Trustee. The financial information provided in this Monthly Operating Report is limited in scope and covers a limited time period. Moreover, such information is preliminary and unaudited and is not prepared in accordance with general acceptable accounting principles in the United States. 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. November 2, 2017 Signature of Debtor Date , :? November 2, 2017 Date November 2, 20I 7 Signature of Authorized Individual* Date Robert W. Zimmer Chief Financial Officer Printed Name of Authorized Individual Title of Authorized Individual *Copies of the Bank Statements and cash disbursements jownals are not included with this Monthly Operating Report due to the vol uminous nature of these reports and are available upon reasonable request in writing to counsel of the Debtors. •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. FOkMMOR-1 (04/07) Schedule of Cash Receipts and Disbursements MOR-1 YES Certification of Bank Account Reconciliation MOR-Ia YES Schedule of Professional Fees Paid MOR-Ib YES Schedule of Bank Reconciliation MOR-Ic YES Statement of Operations MOR-2 YES Balance Sheet MOR-3 YES Status of Post-petition Debts and Certificate of Payroll Tax Deposits MOR-4 YES Listing of aged post-petition accounts payable MOR-4a YES Accounts Receivable Reconciliation and Aging MOR-5 YES Debtor Questionnaire MOR-5 YES
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc. (f/kla In re Katy Industries, Inc.), et al. Debtors Case No.17-11101 (KJC) Reporting Period: August 27,2017 to September 30,2017 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS LEGAL ENTITIES Kll ComPro FWPI Cumulative from Petition Date Liquidating, Liquidating Liquidating, Joe. LLC Inc. Total 2,142,071 1,708,065 3,850,137 2,004,973 CASH BEGINNING OF MONTH $ $ $ $ $ RECEIPTS $ $ $ $ 12,275,079 7,312,500 (3,447,583) 1,723,856 786,974 6,674,991 (7,469,402) 0 COLLECTIONS OF ACCOUNTS RECEiVABLE DIP LOAN PROCEEDS 0 0 0 0 0 0 0 0 0 CASH COLLATERAL PROCEEDS, NET 0 0 0 0 175,236 2,564,132 (2,633,887) 0 0 175,236 3,203,586 (3,273,342) 0 0 105,480 SALE OF ASSETS OTHER (ATTACH usn CASH COLLECTED ON BEHALF OF THE BUYER CASH TRANSFERRED TO BUYER 0 0 0 639,454 (639,454) TRANSFERS FROM/(TO) DIP ACCTS 510 (510) TRANSFERS TO/(FROM) CCP TOTAL RECEIPTS 0 0 $ 510 104,970 $ $ $ 17,856,4I5 $ DISBURSEMENTS INVENTORY & COMPONENTS $ $ $ $ 4,628,680 2,752,507 I 16,712 637,991 444,319 562,838 947,827 28,492 45,783 772,561 703,7I5 140,963 990,248 224,448 $ 510 0 0 0 0 4,621 0 0 0 0 0 0 5,132 0 0 PAYROLL& TAXES TEMPORARY SERVICES EMPLOYEE BENEFITS RENTS 0 0 0 0 0 0 0 0 0 0 0 0 0 UTILITIES 0 FREIGHT & LOGISTICS LEASES 0 0 0 0 0 0 0 0 0 COMMISSIONS SUPPLIES & OTHER 0 0 GENERAL INSURANCE OTHER 0 0 0 20,000 0 13,740 0 20,000 0 13,740 PRE-PETITION CLAIMS 0 0 INTEREST & FEES TAXES 5 000 0 0 0 0 510 38,36I 38,87I 13,002,082 $ $ $ $ $ I80,22I 0 I80,22I 0 3,096,457 26,325 0 PROFESSIONAL FEES-Schedule Attached U.S. TRUSTEE QUARTERLY FEES 0 0 0 0 0 0 0 0 COURT COSTS TOTAL DISBURSEMENTS $180,732 $ 38,361 $ $219,093 $ 16,124,865 NETCASHFWW $ (180,221) 66,609 $ $ (113,613) $ 1,731,551 (RECEIPTS LESS DISBURSEMENTS) CASH - END OF MONTH $ I 961850 S I 774674 S $ 3 736 524 $ 3 736 524 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 $ 219,093 0 0 16,119,865 0 0 $ $ 219 093 $ 16119865 AU other debtors listed in footnote I of this Monthly Operating Report but not reflected on this Schedule of Cash Receipts and Disbursements are inactive entities and, thus, have no receipts or disbursements. FORMMOR-1 (04/01)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc.(f/k/a In re Katy Industries, Inc.), et al. Debtors Case No.17-11101(KJC) Reporting Period:August 27,2017 to September 30,2017 CONSOLIDATING SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS I I I BANK ACCOUNT NO RABOBANK BMOHarris Total 1166 Professional Fee Escrow 1167 DIP Account 1168 Utility Escrow 1169 50J(b)(9) 9460 UMR Insurance 8357 Accounts Payable ACCOUNT NAME CASH BEGINNING OF MONTH $ $ 865,467 $ 20,000 $ 600,000 $ (0) $ (0) $ 2,142,071 656,604 RECEIPTS COLLECTIONS OF ACCOUNTS RECEJVABLE DIP LOAN PROCEEDS CASH COLLATERAL PROCEEDS SALE OF ASSETS OTHER (ATTACH LIST) TRANSFERS (To)/From CCP Transfers From DIP Account TRANSFERS FROM/(TO) DIP ACCTS 0 0 0 0 0 510 0 0 0 510 20,000 (20,000) TOTAL RECEIPTS $ $ 20,000 $ (20,000) $ $ $ 510 $ 510 DISBURSEMENTS INVENTORY & COMPONENTS PAYROLL & TAXES TEMPORARY SERVICES EMPLOYEE BENEFITS RENTS UTILITIES FREIGHT & LOGISTICS LEASES COMMISSIONS SUPPLIES & OTHER GENERAL INSURANCE OTHER (ATTACH LIST) PRE-PETITION CLAIMS INTEREST & FEES TAXES 0.00 510 0 0 0 0 0 0 0 0 0 0 0 0 0 510 - $ $ $ $ $ $ 510 $ 510 PROFESSIONAL FEES-Schedule Attached U.S. TRUSTEE QUARTERLY FEES COURT COSTS TOTAL DISBURSEMENTS $1 80,221 180,221 0 0 - $ 180,221 $ $ $ $ $ 510 $180,732 - $ (20,000) $ $ $ $ (180,221) NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS) $ (180,221) $ 20,000 $ 1,961,850 600,000 $ CASH - END OF MONTH $ 476,383 $ 885,467 $ $ {0} $ {0} FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kll Liquidating, Inc.(f/kla In re Katy Industries, Inc.), et al. Debtors Case No.l7-l1101(KJC) Reporting Period:August 27,2017 to September 30, 2017 CONSOLIDATING SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS I BMO Harris I BANK ACCOUNT NO Total 8892 8918 9452 9386 8224 2407 9394 CENTREX Accounts Payable Cash CoUateral 1,466,991 CCPAccount Payable Lockbox 171,724 Operating 109,817 Payroll Payroll ACCOUNT NAME CASH BEGINNING OF MONTH RECElPTS COLLECTIONS OF ACCOUNTS RECEIVABLE CASH COLLECTED ON BEHALF OF THE BUYER CASH TRANSFERRED TO BUYER TRANSFERS FROM DIP ACCOUNT CASH COLLATERAL PROCEEDS SALE OF ASSETS OTHER (ATTACH LlST) FUNDS TRANSFER -OPERATING ACCOUNT FUNDS TRANSFER-Cash Collateral $ $ $ $ (40,467) $ $ 0 $ $ 1,708,065 0 2,564,132 (2,633,887) 0 0 0 175,236 (510) 0 0 2,564,132 (2,633,887) 175,236 (42,590) 40,576 $ 1,504 TOTAL RECEIPTS DISBURSEMENTS INVENTORY & COMPONENTS PAYROLL&TAXES TEMPORARY SERV ICES EMPLOYEE BENEFITS RENTS UTILITIES FREIGHT & LOGISTICS LEASES COMMISSIONS SUPPUES & OTHER GENERAL INSURANCE OTHER (ATTACH LlST) PRE-PETITION CLAIMS INTEREST & FEES $ (69,756) $ 132,646 $ $ 40,576 $ $ 1,504 $ $ 104,970 $ 3,008 109 1,504 4,621 0 0 0 0 0 0 0 0 0 20,000 0 13,740 20,000 13,740 $ $ 36,748 $ $ 109 $ $ 1 ,504 $ $ 38,361 $0 0 0 PROFESSIONAL FEES-Schedule Attached U.S. TRUSTEE QUARTERLY FEES COURT COSTS TOTAL DISBURSEMENTS NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS) $ $ $ 1,504 $ $ $ 36,748 $ 109 $ 38,361 $ (69,756) $ 95,897 $ $ 40,467 $ $ $ $ 66,609 $ CASH-END OF MONHJ OTHER RECEIPTS Insurance Refunds Utility Deposit Refimds Retiree Medical Co-Insurance Receipts $ 101968 $ 205 714 $ 1.466991 $ 0 $ $ 0 $ 1,774,674 $ $ 174,945 221 174,945 221 $ $ 175,166 $ $ $ $ $ 175,166 OTHER DISBURSEMENTS Ordinary Course Professionals Directors Fees $ 20,000 20 000 $ $ $ $ $ $ $ 20 000 20000 FORMMOR·I (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kll Liquidating, Inc.(f/k/a In re Katy Industries, Inc.), et al. Debtors Case No. 17-11101 (KJC) Reporting Period:August 27,2017 to September 30,2017 CONSOLIDATING SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS I BMOHarris I BANK ACCOUNT NO Total 1654 1639 1670 Account Payable ACCOUNT NAME Lockbox Petty Cash Operating CASH BEGINNING OF MONTH $0 $0 $0 $0 $0 RECEIPTS COLLECTIONS OF ACCOUNTS RECEIVABLE CASH COLLECTED ON BEHALF OF THE BUYER CASH TRANSFERRED TO BUYER DIP LOAN PROCEEDS TRANSFER TO CASH COLLATERAL SALE OF ASSETS OTHER (ATTACH LIST) TRANSFERS FROM/(TO) OPERATING ACCT TRANSFERS FROM CCP TOTAL RECEIPTS so 639,454 (639,454) 0 0 0 0 0 0 639,454 (639,454) so $0 $0 $0 $0 DISBURSEMENTS INVENTORY & COMPONENTS PAYROLL & TAXES TEMPORARY SERVICES EMPLOYEE BENEFITS RENTS UTILITTES FREIGHT & LOGISTICS LEASES COMMISSIONS SUPPLlES & OTHER GENERAL INSURANCE OTHER (ATTACH LIST) PRE-PETITJON CLAIMS INTEREST & FEES $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 so so so $0 $0 0 0 0 PROFESSIONAL FEES-Schedule Attached U.S. TRUSTEE QUARTERLY FEES COURT COSTS TOTAL DISBURSEMENTS $0 $0 so $0 $0 $0 NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS) $0 $0 $0 $0 CASH • END OF MONTH $0 $0 $0 $0 $0 FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc.(flk!a In re Katy Industries, Inc.), et al. Debtors Case No.17-11101 (KJC) Reporting Period:August 27,2017 to September 30, 2017 DECLARATION REGARDING THE STATUS OF BANK RECONCILIATIONS OF THE DEBTORS Robert W.Zimmer hereby declares under penalty of perjury: 1. I am the Chief Financial Officer ofKII Liquidating, Inc. (fi'k/a Katy Industries, Inc.), one of the debtors in these chapter 11 cases (the "Debtors"). In that capacity, I am familiar with the day-to-day operations, business affairs and books and records of the Debtors. I am authorized to submit this Declaration on behalf of the Debtors. 2. All statements in the Declaration are based on my personal knowledge, my review of the relevant documents, my discussions with other employees ofthe Debtors, or my opinion based upon my experience and knowledge of the Debtors' operations and fmancial condition. Ifl were called upon to testify, I could and would testily to each of the facts set forth based on such personal knowledge, review of documents, discussions with other employees of the Debtors, or opinion. 3. To the best of my knowledge, the Debtors' bank balance as of September 30, 2017 have been reconciled in an accurate and timely manner. Dated: November 2, 2017 Respectfully submitted, By: Robert W. Zimmer Title: Chief Financial Officer FORMMOR-1 (04/07)
CaseNo.l7-11101 (KJq Reporting Period: Inception to September 30, 2017 ln re KII Liquidating, Inc. (f!k/a In re Katy Industries, Inc.), et al. Debtors SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID This schedule is to include all mained professional payments from case inception to cUJTent month. Payor s 1,356,233 s 975,000 DLA Piper LLP 74,435 0 Lincoln International LLC Siena Constellation Partners LLC 381,268 35,460 $3,679 Sitrick and Company August-17 Katy Industries, Inc. Wire 9/1412017 9/28/2017 s $29,580 $3,679 $29,580 Wire JND Corporate Resttucturing August-17 Katy Industries, Inc. 90,227 56735.44 173,227 67,576 s l! 9,806.51 s 60,414.72 $2,915,308 s 181,150 FORMMOR·l (041<l7)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc. (flk/a In re Katy Industries, Inc.), et al. Debtors Case No.17-11101(KJC) Reporting Period: August 27,2017 to September 30,2017 Schedule of Bank Reconciliations Less - Account Number Company Bank Account Name Balance per Bank Outstanding Checks Other Items Amount Balance per General Ledger KII Liquidating, Inc. Rabobank Rabobank Rabobank Rabobank Professional Fee Escrow DIP Account Utility Escrow 503(b)(9) 1166 1167 1168 1169 $ 476,383 885,467 0 600,000 $ 476,383 885,467 0 600,000 $ $ $ $ 1,961,849 1,961,850 BMO Harris BMOHarris 9460 8357 UMR Insurance Accounts Payable 0 0 0 0 0 0 0 $ $ $ $ $ 1,961,849 $ $ $ 1,961,850 ComPro Liquidating, LLC . BMOHarris BMO Harris BMO Harris BMO Harris BMO Harris BMO Harris BMO Harris 8224 Operating Account Cash Collateral Lockbox Accounts Payable Payroll Accounts Payable Payroll $ 205,714 1,466,991 101,968 0 0 0 0 $ 205,714 1,466,991 101,968 0 0 0 0 2407 8892 8918 9386 9394 9452 0 0 $ $ $ 1,774,674 0 $ 1,774,674 FWPI Liquidating, Inc. BMO Harris BMO Harris BMO Harris Petty Cash 1639 1654 1670 Operating Account Lockbox Accounts Payable $ $ 0 0 0 0 0 0 0 $ $ $ $ FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kll Liquidating, Inc. (f/k/a In re Katy Industries, Inc.), et Case No. a1. 17_ 11101 (KJC) Debtors Reporting Period:August 27, 2017 to September 30, 2017 CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) Cumulative Filing to Date REVENUES Net sales Period $ $ 13,084,117 Cost of Goods Sold 0 11,919,486 Gross Margin $ $ 1,164,631 Selling & Administration Selling Expenses Administrative Expenses Total Selling & Administrative Expense $ $ 625,166 1,819,245 26,454 26,454 2,444,411 $ $ Operating Profit/(Loss) $ (26,454) $ (1,279,780) Non-operating (lncome)/expense Interest Expense Interest Income Other (Income)/Expense Total non-operating Net Profit (Loss) Before Reorganization Items REORGANIZATION ITEMS Professional Fees U.S. Trustee Quarterly Fees Gain (Loss) from Sale of Equipment Other Reorganization Expenses Total Reorganization Expenses Pre-Tax Income/(loss) Income Taxes Net Income/(Loss) $ $ 1,890,265 (4,217) {13,667} 0 0 $ $ 1,872,381 $ (26,454) $ (3,152,161) $ 180,221 0 539,223 8,595 $ 3,096,457 26,325 19,865,655 747,977 $ {350,407) $ (15,994,896} $ 323,953 0 $ 12,842,735 5,000 $ 323,953 $ 12,837,735 FORM MOR-1 (04/07)
UNlTED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc.(flk/a In re Katy Industries, Inc.), et al. Debtors Case No.17-11101(KJC) Reporting Period: August 27,2017 to September 30,2017 CONSOLIDATING STATEMENT OF OPERATIONS Case No: 17-11101 17-11102 SeeMOR-2b Consolidated F1WH Liquidating, lnc. $ SeeMOR-2c KII Liquidating Inc. $ ComPro Liquidating, LLC $ Inactive Subsidiaries REVENUES Net Sales Consolidated Eliminations $ $ Cost of Goods Sold 0 0 0 0 0 Gross Margin $ $ $ $ $ $ Selling & Administration Selling expense Administrati ve Expense Total Selling & Administrative Expense $ $ $ $ 26,454 21,600 4,854 0 0 26,454 21,600 4,854 $ $ $ $ $ $ Operating Profit/(Loss) $ (26,454) $ $ (21,600) $ (4,854) $ $ Non-operating (lncome)/expense Interest Expense Interest Income Other (Income)/Expense Total non-ilperating Net Profit (Loss) Before Reorganization Items REORGANIZATION ITEMS Professional Fees U. S. Trustee Quarterly Fees Gain (Loss) from Sale of Eassets Other Reorganization Expenses Total Reorganization/(income) Expenses Pre-Tax lncome/(Loss) Income Taxes Net Income/(Loss) $ $ $ $ $ 0 0 0 0 0 0 0 0 0 0 $ $ (26,454) $ $ (21,600) $ (4,854) $ $ $ 180,221 0 539,223 8,595 $ 180,221 $ $ $ 0 212,953 0 0 0 0 16,064 0 310,206 8,595 $ $ 164,157 {301,61ll $ {212,953l $ $ 350,407l $ $ 323,953 0 $ (185,757) 0 $ 296,757 0 $ 212,953 0 $ $ $ 0 $ 323,953 $ $ {185,7572 $ 296,757 $ 212,953 $ FORMMOR-l (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc. (flk/a In re Katy Industries, Inc.), et al. Case No.17-11101 (KJC) Debtors Reporting Period: August 27, 2017 to September 30, 2017 CONSOLIDATING STATEMENT OF OPERATION8-FTWH LIQUIDATING, INC. & SUBSIDIARY 17-11103 17-11104 Case No: Consolidated FfWH Liquidating, Inc.Eliminations YIWH Liquidating, Inc. $ FWPI Liquidating, Inc. $ REVENUES Net Sales $ $ Cost of Sales 0 0 0 0 Gross Margin $ $ $ $ Selling & Administration Selling Expense Administrative Expense Total Selling & Administrative Expense $ $ 0 0 $ $ $ $ Operating Profit/(Loss) $ $ $ $ Non-operating (Iocome)/expense In terest Expense Interest Income Other (lncome)/Expense Total non-operating Net Profit (Loss) Before Reorganization Items REORGANIZATION ITEMS Professional Fees U.S. Trustee Quarterly Fees Gain (Loss) from Sale of Equipment Other Reorganization Expenses Total Reorganization Expenses Pre-Tax lncome/(Loss) Income Taxes Net lncome/(Loss) $ 0 0 0 $ $ $ $ $ $ $ $ $ 0 212,953 0 212,953 $ {212,953} $ $ $ {212,953} $ 212,953 0 $ $ $ 212,953 0 0 0 $ $ 212,953 $ 212,953 $ FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc. (f/k/a In re Katy Industries, Inc.), et al. Debtors Case No. 17-11101 (KJC) Reporting Period: August 27, 2017 to September 30, 2017 CONSOLIDATING STATEMENT OF OPERATIONS-INACTIVE SUBSIDIARIES Case No: 17-11105 17-11106 17-11107 17-11108 17-11109 17-11110 17-11111 17-11112 17-11113 17-11114 American Gage& Machine Company KTI Liquidating, Inc. Hermann Lowenstein Inc. WP Liquidating Corp Inactive Subsidiaries Til Holdings, Inc. Ashford Holding Corp Wabasb Holding Corp Wll, lnc. GCW,Inc. HPMI, Inc. REVENUES Net Sales s s $ $ $ $ $ $ $ $ $ COST OF GOODS SOLD Cost of Sales s s 0 0 0 0 $ $ $ $ $ $ s s s s Gross Margin $ $ $ $ $ $ Uing & Administration Selling Expense Administrative Expense Total Selling & Administrative Expense $ 0 0 0 0 0 $ $ $ s $ $ $ $ $ $ $ $ Operating Profit/(Loss) $ $ $ $ $ $ $ $ $ $ Non-operating (lncome)lexpense Interest Expense interest Income Other(Income}!Expense Total non-operating Net Profit (Loss) Before Reorganization llems REORGANIZATION ITEMS Professional Fees U. S. Trustee Quarterly Fees Gain (Loss) from Sale of Equipment Other Reorganization Expenses Total Reorganization Expenses Pre-Tax Income/{Loss) Income Taxes Net lncomei(Loss) $ 0 0 s s s $ $ $ $ $ $ $ $ s $ $ $ $ $ $ $ $ $ $ $ 0 0 0 s $ $ s $ $ s $ s $ $ $ s s $ $ $ s $ s $ $ $ $ 0 0 0 0 0 0 0 0 0 0 0 $ $ $ $ $ $ $ $ $ FORM MOR-t (04107)
TED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc. (f/k/a In re Katy Industries, Inc.), et al. Debtors Case No. 17-11101(KJC) Reporting Period:September 30,2017 CONSOLIDATED BALANCE SHEET (Unaudited) Prior Petition Date September 30,2017 Period ASSETS CURRENT ASSETS Unrestricted Cash and Equivalents Accounts Receivable (Net) Notes Receivable Inventories, net Prepaid Expenses Net Inter-company accounts Other Current Assets TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT Land and improvements Buildings and improvements Machinery and equipment Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT OTHER ASSETS Goodwill, net Lease Deposits Notes Receivable Other intangible assets, net Investment in unconsolidated subsidiaries $ 3,736,524 0 0 0 0 972,881 0 $ 3,850,137 0 0 0 0 993,373 0 $ 2,004,972 7,879,871 0 6,711,037 414,869 174,499 580,435 $ 4,709,405 $ 4,843,509 $ 17,765,683 $ $ $ 285,129 6,897,720 44,706,564 (36,533,567) 0 0 0 0 0 0 $ $ $ 15,355,846 $ $ $ 24,318,535 200,449 608,519 7,785,688 18,966,005 0 631,995 0 2,164,931 0 631,995 0 2,164,931 $ 2,796,926 2,796,926 51,879,196 TOTAL OTHER ASSETS TOTAL ASSETS $ $ 7,506,331 7,640,435 85,000,725 $ $ $ FORM MOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE Case No. 17-11101 (KJC) Reporting Period:September 30, 2017 CONSOLIDATED BALANCE SHEET (Unaudited) In re Kll Liquidating, Inc. (f/k/a In re Katy Industries, Inc.), et al. Debtors Prior Period Petition Date September 30, 2017 LIABILITIES AND OWNER EQUITY LIABILITIES Current Liabilities Accounts Payable - Pre-Petition Accounts Payable - Post Petition Accrued Expenses Accrued Compensation Accrued Interest TOTAL CURRENT LIABILITIES SECURED DEBT Revolver Senior Term Notes Subordinated Debt Capital Leases Shareholder Notes Total Secured Debt NON-CURRENT LIABILITIES Post retirement benefits Deferred Compensation Deferred taxes GAAP Lease Obligations $ 19,438,724 0 1,161,078 0 0 $ $ 19,896,780 $ $ 21,369,781 1,161,078 0 0 7,169,231 657,737 52,885 $ 20,599,802 $ 21,057,858 $ 29,249,634 $ $ $ 13,019,108 6,510,000 36,718,401 351,447 321,168 0 0 0 330,355 0 0 0 330,355 $ 330,355 $ 330,355 56,920,124 $ $ 49,982 470,703 0 0 $ 49,982 470,703 0 0 $ 1,203,156 499,624 122,000 5,843,Ill TOTAL NON-CURRENT LIABILITIES $ 520,685 $ 520,685 $ 7,667,891 TOTAL LIABILITIES $ 21,450,841 $ 21,908,897 $ 93,837,649 SHAREHOLDERS EQUITY Convertible Preferred Stock Common Stock Additional Paid-In Capital Accumulated other comprehensive loss Retained Earnings - Pre-Petition Retained Earnings - Post-Petition Treasury Stock TOTAL SHAREHOLDERS EQUITY TOTAL LIABILITIES AND OWNERS' EQUITY $ I 08,256,190 9,822,204 196,337,115 (651,660) (319,109,391) 12,837,735 (21,436,702) $ 108,256,190 9,822,204 196,337,115 (651,660) (319,109,391) 12,513,782 (21,436,702) $ 1 08,256,190 9,822,204 31,148,825 (651,660) (135,975,781) 0 (21,436,702) $ (13,944,509) $ (14,268,462) $ (8,836,924) $ 7,506,332 7,640,435 $ 85,000,725 $ FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc.(f/kla In re Katy Industries, Inc.), et al. I>ebtors CONSOLIDATING BALANCE SHEET (Unaudited) As of September 30,2017 Case No. 17-11101 (KJC) 17-11101 17-11102 SeeMOR-3b See MOR-3c Consolidated FTWH Liquidating, Inc. KD Liquidating, Inc. ComPro Liquidating, Inc. Inactive Subsidiaries Consolidated Eliminations ASSETS CURRENT ASSETS Unrestricted Cash and Equivalents Accounts Receivable (Net) Inventories, net Prepaid Expenses Net Inter-company accounts Other Current Assets TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT Land and improvements Buildings and improvements Machinery and equipment Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT OTHER ASSETS Goodwill, net Lease Deposits Notes Receivable Other intangible assets, net Investment in unconsolidated subsidiaries TOTAL OTHER ASSETS $ 3,736,524 $ $ $ $ 1,961,850 1,774,674 0 0 0 332,103 0 972,881 3,833,296 (140,219,501) 1,622,162 135,404,821 4,709,405 $ 3,833,296 (138,257,651) 3,396,837 332,103 135,404,821 $ $ $ $ $ $ $ $ $ $ $ 631,995 631,995 2,164,931 (136,147,134) 138,312,065 $ $ $ $ $ 2,796,926 (136,147,134) 138,312,065 631,995 $ TOTAL ASSETS $ 7,506,331 $ (132,313,838) $ 54,414 $ 4,028,832 $ 332,103 $ 135,404,821 FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kll Liquidating, Inc. (f/k/a In re Katy Industries, Inc.), et al. Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of September 30, 2017 Case No. 17-11101 (KJC) 17-11101 17-11102 SeeMOR-3b SeeMOR-3c Consolidated FTWH Liquidating, Inc. ComPro Liquidating, Inc. Inactive Subsidiaries KII Liquidating, Inc. Consolidated Eliminations LIABILITIES AND OWNER EQUITY LIABILITIES Current Liabilities Accounts Payable Pre-Petition Accounts Payable Post-Petition Accrued Expenses Accrued Compensation Accrued Interest TOTAL CURRENT LIABILITIES Debt Revolver Senior Term Notes Subordinated Debt Capital Leases Shareholder Notes Total Debt NON-CURRENT LIABILITIES Post retirement benefits Deferred Compensation Deferred taxes GAAP Lease Obligations TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES $ 19,438,724 $ $ 2,549,337 $ 14,759,006 $2,130,382 $ 765,000 396,077 1,161,078 $ $ 20,599,802 $ $ 3,314,337 $ 14,759,006 $ 2,130,382 396,077 $ $ $ 0 330,355 330,355 $ 330,355 $ 0 $ 330,355 $ $ 49,982 49,982 470,703 $ $ $ 470,703 520,685 $ 470,703 $ $ $ 49,982 $ $ $ $ 21,450,842 $ $ 3,785,039 $ 15,089,361 $ 2,130,382 446,059 FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re KII Liquidating, Inc.(f/kla In re Katy Industries, Inc.),et al. Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As ofSeptember 30, 2017 Case No.17-11101(KJC) 17-11101 See MOR-3c 17-11102 SeeMOR-3b Consolidated FTWH Liquidating, Inc. KII Liquidating, Inc. ComPro Liquidating, Inc. Inactive Subsidiaries Consolidated Eliminations SHAREHOLDERS EQUITY Convertible Preferred Stock Common Stock Additional Paid-[n Capital Accumulated other comprehensive loss Retained Earnings - Pre-Petition Retained Earnings-Post-Petition Treasury Stock TOTAL SHAREHOLDERS EQUITY TOTAL LIABILITIES AND OWNERS' EQUITY $ 5,150,000 1,203,000 57,942,973 (570,716) 70,939,183 294,322 $ 134,958,762 ---------------------------------------------------------------------------------------------------------------------------------------------------------=$=================='"='========================'==='==='=3=',540=4=,8=12= FORMMOR-1 (04/07)
TED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kll Liquidating, Inc.(f/k/a In re Katy Industries, Inc.), et al. Debtors CONSOLIDATING BALANCE SHEET (Unaudited) Case No.17-11101 (KJC) I As of September 30, 2017 Consolidating Fort Wayne Holdings, Inc. 17-11103 FTWH Liquidating, Inc. 17-11104 FWPI Liquidating, Inc. Consolidated FTWH Liquidating, Inc. Eliminations ASSETS CURRENT ASSETS Unrestricted Cash and Equivalents Accounts Receivable (Net) Inventories, net Prepaid Expenses Net Inter-company accounts Other Current Assets TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT Land and improvements Buildings and improvements Machinery and equipment Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT OTHER ASSETS Goodwill, net Lease Deposits Notes Receivable Other intangible asseets, net Investment in unconsolidated subsidiaries TOTAL OTHER ASSETS TOTAL ASSETS $ $ 0 0 0 332,103 0 0 0 0 332,103 $ $ $ $ 332,103 332,103 $ $ 0 0 $ $ $ $ $ $ 0 0 0 (10,774,276) 10,774,276 $ $ (10,774,276) $ 10,774,276 $ $ 332,103 $ (I0,774,276) $ 10,774,276 $ 332,103 FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE Case No.17-11101(KJC) In re KII Liquidating, Inc.(flk!a In re Katy Industries, Inc.), et al. Debtors CONSOLIDATING BALANCE SHEET (Unaudited) I As of September 30, 2017 Consolidating Fort Wayne Holdings, Inc. 17-11104 FWPI Liquidating, Inc. 17-11103 FTWH Liquidating, Inc. Consolidated FTWH Liquidating, Inc. Eliminations LIABILITIES AND OWNER EQUITY LIABILITIES Current Liabilities Accounts Payable Pre-Petition Accounts Payable Post-Petition Accrued Expenses Accrued Compensation Accrued Interest TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Deferred taxes TOTAL NON-CURRENT LIABILITIES 2,130,382 0 0 0 $ 2,130,382 0 0 0 0 $ $ 2,130,382 $ 2,130,382 $ $ $ $ $ $ $ TOTAL LIABILITIES SHAREHOLDERS EQUITY Convertible Preferrred Stock Common Stock Additional Paid-In Capital Accumulated other comphehensive loss Retained Earnings - Pre-Petition Retained Earnings - Post-Petition Treasury Stock TOTAL SHAREHOLDERS EQUITY TOTAL LIABILITIES AND OWNERS' EQUITY 2,130,382 2,130,382 $ $ $ $ (0) 0 10,774,275 10,774,275 10,774,276 (781,848) (11,790,707) (10,774,276) (781,848) (11,790,707) $ (1,798,279) $ (10,774,276) $ 10,774,276 $ (1,798,279) $ 332,103 $ (10,774,276) $ 10,774,276 $ 332,103 FORMMOR-1 (04/07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kll Liquidating, Inc. (f/k/a In re Katy Industries, Inc.), et al. Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of September 30, 2017 Case No. 17·11101(KJC) 17·11105 17·11106 17·11107 17-11108 17·11109 17 11110 17·11111 17·11111 17 11113 17·11114 lnactivt Subsidiaries Eliminations Wabash Holding Corp KTI Llquidadnc, Int. Hermann Lowenstein Inc. WP Liquid•line Corp Ashford Holding Corp American Cage & Machine Company GCW,Inc. Wll,lnc. TTl, Hol dings HPM l, ln<. ASSETS CURRENT ASSETS Unrestricted Cash and Equivalents Accounts Receivable (Net) Notes Receivable Inventories, net Prepaid Expenses Net Inter-company accounts Other Current Assets (attach schedule) TOTAL CVRRENT ASSETS PROPERTY AND EQUIPMENT Land and improvements Buildings and improvements Machinery and equipment Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT OTHER ASSETS Goodwill, net Lease Deposits Notes Receivable Other intangible assets, net Investment in unconsolidated subsidiaries TOTAL OTHER ASSETS 0 0 0 0 135,404,821 0 3,578,827 (28,847,177) 71,480,093 6,119,575 23,036,075 25,972,861 (1,18i,S38) 23,286,555 1 1 ,959,550 135,404,821 3,578,827 (28,847,177) 71,480,093 6,119,575 23,036,075 25,972,861 (1,181,538) 23,286,555 11,959,HO 0.00 0.00 0.00 6,119,574 (4,938,036) 6,119,574 (1 ,181,538) TOTAL ASSETS (4,938,0361 s s 135,404,821 3,578,827 p8,847,17;!l 77,5991667 6,119,575 23,036,075 24,791,323 (1.1 81,538! 23 286,555 1 1,959,550 1
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kll Liquidating, Inc. (ffk/a In re Katy Industries, Inc.), et al. Debtors CONSOLIDATING BALANCE SHEET (Unaudited) As of September 30, 2017 Case No. 17-11101(KJC) 17-IIIOii 17·11105 17·11107 17-11108 17·11109 17-11110 17-11111 17-11112 17-11113 17-11114 Inadive Subsidiaries Eliminatioos Wabash lloldina Corp KT1 Liquidating, Inc. Hermann Lo"""emtein Inc. American Gar:e & Machine Company WP Liquidatina Corp Ashford Holdin& Corp GCW, Int. WII, Jnc. Til,Uoldincs HPMI, Inc. LIABILITIES AND OWNER EQUITY LIABILITIES Current LlabUities AccoWlts Payable Accrued Expenses Accrued Compensation Accrued Interest 0 396,077 396,077 s TOTAL CURRENT LIABILITIES DEBT Revolver Senior Tenn Notes Subordinated Debt Capital Leases Shareholder Notes Tota l Debt NON-CURRENT LIABILITIES Post retirement benefits Deferred Compensation Deferred taxes GAAP Lease Obligations 396,077 396,077 0 49,982 49,982 s s TOTAL NON-CURRENT LIABILITIES 49,982 49,982 $ 446,059 TOTAL UABILITIES 446,059 $ SHARE/fOLDERS EQUITY Convertible Preferred Stock Common Stock Additional Paid-In Capital Accumulated other comprehensive loss Retained Earnings - Pre-Petition Retained Earnings-Post-Petition Treasury Stock TOTAL SHAREHOLDERS EQUITY 5, t 50,000 1,203,000 57,942,973 (570,716) 70,939,183 294,322 2,650,000 200,000 6,275,443 2,500,000 1,000,000 1,236,128 $ 1,000 194,716 (500,000) (7,782,135) 1 ,000 6,134,502 (397,537) (2,464,930) 305,792 1,000 500,000 44,102,184 (56,432) 33,522,477 31,438 7,782,135 (1 1 6,747) 23,195,730 (42,908) (28,848,177) (1,662,560) 15,219,821 (1,681,538) 18,550,427 11,763,834 3,344,099 3,578,827 s s 1 1,959,550 134,958,762 (4,938,036) (28,847,177) 77,599,667 6,119,575 23,036,075 24,345,264 (1,181,538) $ 23,286,555 s (1,181,538! s 3,l78,827 6,119,575 23,036,075 24,791,323 23,286!555 11,959,l50 TOTAL LIABILITIES AND OWNERS' EQUITY 135,404,821 4,938,036! p8,847,11Zl 77,599,667 FORMM::>R·1 (04MI)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kli Liquidating, Inc. (f/k/a In re Katy Industries, Inc.), et al. Debtors Case No.17-11101 (KJC) Reporting Period: September 30, 2017 SUMMARY OF UNDISPUTED UNPAID POST-PETITION DEBTS Number of Days Past Due Current 0-30 31-60 61-90 Over90 Total Accounts Payable KIT Liquiidating, lnc. ComPro Liquidating, LLC FWPI Liquidating, Inc. Total Postposition Debts 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Affidavit of the Chief Financial Officer concerning payment of payroll taxes Robert W. Zimmer hereby declares under penalty of perjury: I. I am the Chief Financial Officer of Kli Liquidating, Inc. (flk/a/Katy Industries, Inc.) , one of the debtors in these chapter 11 cases (the "Debtors"). In that capacity, I am familiar with the day-to-day operations, business affairs and books and records of the Debtors. I am authorized to submit this Declaration on behalf of the Debtors. 2. All statements in the Declaration are based on my personal knowledge, my review of the relevant documents, my discussions with other employees of the Debtors, or my opinion based upon my experience and knowledge of the Debtors' operations and financial condition. Ifi were called upon to testify, I could and would testily to each of the facts set forth based on such personal knowledge, review of documents, discussions with other employees of the Debtors, or opinion. 3. To the best of my knowledge, all payroll taxes either withheld from employees' or levied upon the Debtors' have been timely remitted to the appropriate taxing authority. Dated: November 2, 2017 Respectfully submitted, By: Robert W. Zimmer Title: Chief Financial Officer FORMMOR-1 (04f07)
UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re Kll Liquidating, Inc.(flk/a In re Katy Industries, Inc.), et al. Debtors Case No.17-11101(KJC) Reporting Period: August 27, 2017 to September 30, 2017 ACCOUNTS RECEIVABLE RECONClLIATION AND AGING Com Pro Liquidating, LLC FWPILiquidating, In Consolidated Accounts Receivable Reconciliation Total Accounts Receivable at tbe beginning of the reporting period + Amounts billed during the period - Amounts collected during the period +/-Adjustments-Sale of Assets Total Accounts Receivable at the end of the reporting period 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Accounts Receivable Aging from invoice date 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) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 DEBTOR QUESTIONNAIRE Must be completed each month I. Have any assets been sold or transferred outside the normal course of business this reporting period? lf 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. Yes/No No No 3. Have all post petition tax returns been timely filed? If no, provide an explanation below. U.S. Federal and certain state income tax returns for the year ending December 31, 2016 were due during the reporting period. The Debtors are in process of having the required tax returns prepared . 4. Are workers compensation, general liability and otber necessary insurance coverages i n effect? If no, provide an explanation below. The State of Missouri, Department of Labor and Industrial Relations, Division of Workers' Compensation has caUed a default and terminated the Debtors' self-insurance workers'compensation plan previously maintained in Missouri in accordance with this Court's interim order Dkt. No.298. Yes No 5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). lfan investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3. No The following bank accounts were closed effective September 1, 2017 as they were not required for the on-going business oftbe Debtor Corooration Baok Account No Bank BMO-Harris BMO-Barris BMO-Harris BMO-Harris BMO-Harris BMO-Harris BMO-Darris Account NO KU Liquidating, Inc. ((f!k/a Katy Industries, Inc) ComPro Liquidating, LLC. (flk/a Continental Commercial Products, LLC) ComPro Liquidating, LLC. (flk/a Continental Commercial Products, LLC) ComPro Liquidating, LLC. (f!k/a Continental Commercial Products, LLC) ComPro Liquidating, LLC. (flk/a Continental Commercial Products, LLC) FWPI Liquidating,Inc. (f!k/a Fort Wayne Plastics, Inc.) FWPI Liquidating, In(f!k/a Fort Wayne Plastics, Inc.) 9460 8918 9386 9394 9452 1639 1670 FORMMOR-1 (04/07)
