UNITED STATES BANKRUPTCY COURT
DISTRICT OF
DELAWARE
In re Highlands Insurance Group, Inc. et al. Case No. 02-13196 through 02-13201
Debtor
INITIAL MONTHLY OPERATING REPORT
FILE REPORT AND ATTACHMENTS WITH COURT AND SUBMIT COPY TO UNITED STATES TRUSTEE
WITHIN 15 DAYS AFTER ORDER FOR RELIEF
Certificates of insurance must name United States Trustee as a party to be
notified in the event of policy cancellation. Bank accounts and checks must bear
the name of the debtor, the case number, and the designation "Debtor in
Possession." Examples of acceptable evidence of Debtor in Possession Bank
accounts include voided checks, copy of bank deposit agreement/certificate of
authority, signature card, and/or corporate checking resolution.
DOCUMENT EXPLANATION
REQUIRED DOCUMENTS ATTACHED ATTACHED
- ------------------ -------- --------
12-Month Cash Flow Projection (Form IR-1) X
Certificates of Insurance:
Workers Compensation N/A
Property N/A
General Liability X
Vehicle X
Other:_______________________________
Evidence of Debtor in Possession Bank Accounts **
Tax Escrow Account
General Operating Account
Other:_______________________________
Other:_______________________________
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and
the documents attached are true and correct to the best of my knowledge and
belief.
- -------------------------------------------- -----------------------------------
Signature of Debtor Date
- -------------------------------------------- -----------------------------------
Signature of Joint Debtor Date
/s/ Stephen L. Kibblehouse 11/19/02
- -------------------------------------------- -----------------------------------
Signature of Authorized Individual* Date
Stephen L. Kibblehouse CEO & President
- -------------------------------------------- -----------------------------------
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.
**In process of setting up bank accounts.
IN RE HIGHLANDS INSURANCE GROUP, INC. ET AL. CASE NO. 02-13196 THROUGH 02-13201
CASH FLOW PROJECTIONS FOR THE 12 MONTH PERIOD: NOVEMBER 2002 THROUGH OCTOBER 2003
This schedule must be filed with the Court and a copy submitted to the United
States Trustee within 15 days after the order for relief. Amended cash flow
projections should be submitted as necessary.
Month Month Month Month Month Month Month
Nov Dec Jan Feb Mar Apr May
------- ------- -------- ------- ------- ------- -------
Cash Beginning of Month 453,345 448,641 412,641 287,641 265,641 239,141 229,891
RECEIPTS
CASH SALES --
ACCOUNTS RECEIVABLE --
LOANS AND ADVANCES --
SALES OF ASSETS --
OTHER - TAX REFUND -- 20,000
------- ------- -------- ------- ------- ------- -------
TOTAL RECEIPTS -- -- -- -- -- 20,000 --
DISBURSEMENTS
NET PAYROLL --
PAYROLL TAXES --
SALES, USE, AND OTHER TAXES -- -- -- -- 2,500 -- --
INVENTORY PURCHASES --
SECURED/RENTAL/LEASES --
INSURANCE -- -- 100,000 -- -- -- --
ADMINISTRATIVE & SELLING 1,000 1,000 1,000 1,000 1,000 1,000 1,000
OTHER (ATTACH LIST) 3,704 10,000 3,500 1,000 3,000 7,000 --
PROFESSIONAL FEES -- 20,000 20,000 20,000 20,000 20,000 --
U.S. TRUSTEE FEES -- -- 500 -- -- 1,250 --
COURT COSTS -- 5,000 -- -- -- -- --
------- ------- -------- ------- ------- ------- -------
TOTAL DISBURSEMENTS 4,704 36,000 125,000 22,000 26,500 29,250 1,000
NET CASH FLOW
(RECEIPTS LESS DISBURSEMENT) (4,704) (36,000) (125,000) (22,000) (26,500) (9,250) (1,000)
CASH END OF MONTH 448,641 412,641 287,641 265,641 239,141 229,891 228,891
Month Month Month Month Month
June July Aug Sept Oct Total
------- ------- ------- ------- ------- -------
Cash Beginning of Month 228,891 227,891 226,891 225,891 224,891
RECEIPTS
CASH SALES
ACCOUNTS RECEIVABLE
LOANS AND ADVANCES
SALES OF ASSETS
OTHER - TAX REFUND
------- ------- -------- ------- ------- -------
TOTAL RECEIPTS -- -- -- -- --
DISBURSEMENTS
NET PAYROLL
PAYROLL TAXES
SALES, USE, AND OTHER TAXES -- -- -- -- --
INVENTORY PURCHASES
SECURED/RENTAL/LEASES
INSURANCE -- -- -- -- --
ADMINISTRATIVE & SELLING 1,000 1,000 1,000 1,000 1,000
OTHER (ATTACH LIST) -- -- -- -- --
PROFESSIONAL FEES -- -- -- -- --
U.S. TRUSTEE FEES -- -- -- -- --
COURT COSTS -- -- -- -- --
------- ------- -------- ------- ------- -------
TOTAL DISBURSEMENTS 1,000 1,000 1,000 1,000 1,000
NET CASH FLOW
(RECEIPTS LESS DISBURSEMENT) (1,000) (1,000) (1,000) (1,000) (1,000)
CASH END OF MONTH 227,891 226,891 225,891 224,891 223,891
FORM IR-1
(9/99)
IN RE HIGHLANDS INSURANCE GROUP, INC. ET AL. CASE NO. 02-13196 THROUGH 02-13201
CASH FLOW PROJECTIONS FOR THE 12 MONTH PERIOD: NOVEMBER 2002 THROUGH OCTOBER 2003
OTHER
- ---------------------------------------------------------------------------------------------------------------------------------
Month Month Month Month Month Month Month Month Month Month Month Month Total
Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct
----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---------
OTHER (ATTACH LIST)
Board of Director Fees & Expenses -- 6,000 -- -- -- 6,000 -- -- -- -- -- --
Printing & Mailing Notices to
Shareholders & Creditors -- 3,000 2,500 -- 2,000 -- -- -- -- -- -- --
SEC Filings 3,704 1,000 1,000 1,000 1,000 1,000
----- ------ ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---------
TOTAL 3,704 10,000 3,500 1,000 3,000 7,000 -- -- -- -- -- --
FORM IR-1
(9/99)