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OFFICE OF THE UNITED STATES TRUSTEE
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IN RE: ) DEBTOR IN POSSESSION OPERATING REPORT
] -------------------------------------
MATTHEWS STUDIO EQUIPMENT GROUP & SUBSIDIARIES ) REPORT NUMBER 14 Page 1 of 3
) FOR THE PERIOD FROM: May 1, 2001
) TO: May 31, 2001
) --------------------------------------------------
)
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CHAPTER 11 CASE NO. SV00-13471KL
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SEE ATTACHED
1. Profit and Loss Statement
A. Related to Business Operations:
Gross Sales -------------------
Less Sales Returns and Discounts
Net Sales ------------------- -
---------------
Less: Cost of Goods Sold -
Beginning Inventory at Cost -------------------
Add: Purchases
-------------------
Less: Ending Inventory at Cost -
------------------- -
Cost of Goods Sold ---------------
Gross Profit -
------------------
Other Operating Revenue (Specify) -
------------------
Less: Operating Expenses
Officer Compensation
-------------------
Salaries & Wages - Other Employees
-------------------
Total Salaries & Wages -
---------------
Employee Benefits -
---------------
Payroll Taxes
-------------------
Real Estate Taxes (Personal Property Tax)
-------------------
Federal and State Income Taxes
-------------------
Total Taxes -
---------------
Rent and Lease Exp. (Real and Personal Property) -
-------------------
Interest Expense (Mortgage, Loan, etc.) -
-------------------
Insurance
-------------------
Automobile Expense
-------------------
Utilities (Gas, Electric, Water, Telephone, etc.)
-------------------
Depreciation and Amortization
-------------------
Repairs and Maintenance
-------------------
Advertising -
-------------------
Supplies, Office Expenses, Photocopies, etc.
-------------------
Bad Debts -
-------------------
Miscellaneous Operating Expenses (Specify) -
------------------------------------
Total Operating Expenses -
------------------
Net Gain/(Loss) from Business Operations -
------------------
B. Not Related to Business Operations
Income:
Interest Income
------------------
Other Non-Operating Revenues (Specify)
------------------
Gross Proceeds on Sale of Assets
---------------
Less: Original Cost of Assets plus Expenses of Sale
---------------
Net Gain/(Loss) on Sale of Assets
------------------
Total Non-Operating Income
--------------
Expenses Not Related to Business Operations:
Legal and Professional Fees
-----------------
Other Non-Operating Expenses (Specify)
-----------------
Total Non-Operating Expenses -
--------------
NET INCOME /(LOSS) FOR PERIOD -
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Revised April 1989 OPERATING REPORT UST-4
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1
MATTHEWS STUDIO EQUIPMENT GROUP & SUBSIDIARIES
Statement of Operations for the Period May 31, 01
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($000's)
REVENUES
Sales 27
Rental revenues 689
-----------
Total revenues 716
Cost of goods sold 15
Cost of rental operation 179
-----------
Total cost of sales and rental 194
Gross profits 522
Selling expense -
General & administration 115
-----------
Total operating expenses 115
Operating profit 407
Depreciation & amortization 258
Coporate Interest allocation -
DIP Interest -
Other income & expenses -
-----------
Earnings before reorganization items & income tax provision 149
Reorganization items:
Loss from sales of assets/Closing cost of facility -
Professional fees 801
Provision for rejected executory contracts -
Interest earned on accumulated cash resulting from chapter 11 Proceeding (228)
-----------
Total reorganization items 573
Income(loss) before income tax provision (424)
Income tax (benefits) -
-----------
Net income (loss) (424)
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DEBTOR IN POSSESSION OPERATING REPORT NO. 14
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Page 2 of 3
2. Aging of Accounts Payable and Receivable (exclude pre-petition debt from
accounts payable):
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Accounts Payable Accounts Receivable
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Current Under 30 days $0 $468,711
Overdue 31 - 60 days $0 $11,869
Overdue 61 - 90 days $0 $4,439
Overdue 91 - 120 days $0 $0
Overdue 121 + days $0 $1,088,744
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Total $0 $1,573,763
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3. Statement of Status of Payments to Secured Creditors and Lessors: SEE ATTACHED
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Frequency of Post-Petition
Payments per Amount of Payments Not Made
---------------------------------
Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount
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4. Tax Liability:
Gross Payroll Expense For Period $81,590 *SEE NOTE
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Gross Sales for Period Subject to Sales Tax $20,944
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Post Petition Taxes
Date Paid Amount Paid * Still Owing
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Federal Payroll and Withholding Taxes 4/25/01 $14,625 $2,399
State Payroll and Withholding Taxes 4/25/01 $4,036 $688
State Sales and Use Tax 4/20/01 $6,858 $890
Real Property Taxes $0 $0
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* Attach photocopies of depository receipts from taxing
authority or financial institution to verify that
such deposits or payments have been made.
5. Insurance Coverage
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Carrier/ Amount of Policy Premium Paid
Agent Coverage Exp. Date Thru Date
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Worker's Compensation GULF INS CO 10/1/01 10/1/01
Liability GULF INS CO SEE 10/1/01 10/1/01
Fire and Extended Coverage GULF INS CO ATTACHED 10/1/01 10/1/01
Property GULF INS CO (Not Filed with Form 8K) 10/1/01 10/1/01
Theft CNA 10/1/01 10/1/01
Life (Beneficiary:________________) TRANSAMERICA
Vehicle GULF INS CO 10/1/01 10/1/01
Other INSURANCE WEST 10/1/01 10/1/01
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*NOTE: PAYROLL IS PAID BY MATTHEWS STUDIO EQUIPMENT GROUP,
AND IS ALLOCATED TO THE SUBSIDIARY INCURRING THE
PAYROLL EXPENSE.
ALL PAYROLL TAXES ARE PAID BY ADP
ZA
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MATTHEWS STUDIO EQUIPMENT GROUP & SUBSIDIARIES
SECURED CREDITORS AND LESSORS
MAY 31, 2001 CREDIT FACILITY
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page 3
MONTHLY UNPAID
BINDER TAB DESCRIPTION COMPANY PAYMENT POST PETITION
--------- ----- --------------------------------------------------- --------------- -------------------------
CRF98 39 IBM Credit Corp - AS400/JBA Software Group 7,866 7,866
V 85 Xerox - Copier #C0H-010403 Group - Acct 558 0
CRF98 40 Pitney Bowes - Postage meter Four Star 167 0
CRF98 12 Minolta Copier Corp - Copier/Fax Four Star 264 0
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DEBTOR IN POSSESSION OPERATING REPORT NO. 14
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Page 3 of 3
6. Questions:
A. Has the Debtor provided to any officers, directors, shareholders,
or other principals compensation without the approval of the
Office of the United States Trustee?
_____ : Yes Explain: ____________________________________
X :No
B. Has the Debtor, subsequent to the filing of the petition made any
payments on its pre-petition unsecured debt, except as have been
authorized by the Court?
_____ : Yes Explain: ____________________________________
X : No
7. Statement of Unpaid Professional Fees (Post-Petition Only):
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Type Post-Petition
Name of Professional Professional Unpaid Total**
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Crossroads, LLC Turnaround management - Estimated
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George Nicolais Financial advisor 5,559 Estimated
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Klee Tuchin Bogdanoff & Stern Counsel 65,295 Estimated
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Latham Watkins Counsel -
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Stutman Treister Counsel 29,357 Estimated
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Imperial Capital, LLC Financial advisor -
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Holland & Knight Counsel 58,616 Estimated
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Ernst & Young Independent Auditors -
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**NOTE: Professional fees are paid by Matthews Studio Equipment Group for all the subsidiaries.
8. Narrative Report of Significant Events And Events Out Of The Ordinary Course
Of Business:
N/A
9. Quarterly Fees: (This Fee must be paid to the United States Trustee every
calendar quarter)
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Quarterly
Quarterly Disbursements Quarterly Quarterly
Period Ending for Quarter Fee Date Paid Amount Paid Check No. Fee Still Owing
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6/30/00 $7,108,942.00 $24,500.00 7/31/00 $24,500.00 2408
9/30/00 $7,208,343.00 $21,500.00 10/24/00 $21,500.00 1395
12/31/00 $7,053,994.00 $21,000.00 1/26/01 $21,000.00 1543
3/31/01 $5,307,500.00 $18,250.00 4/27/01 $18,250.00 1643
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I, Ellen Gordon, Estate Representative, declare under penalty of perjury that
the information contained in the above Debtor in Possession Operating Report is
true and complete to the best of my knowledge.
Dated: June 29, 2001 Signed: /s/ Ellen Gordon
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OFFICE OF THE UNITED STATES TRUSTEE
PAGE 1
CENTRAL DISTRICT OF CALIFORNIA
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IN RE: ) DEBTOR IN POSSESSION INTERIM STATEMENT
)
Matthews Studio Equipment Group ) STATEMENT NO. 14
) FOR THE PERIOD FROM: 05/01/01
DEBTOR ) TO: 05/31/01
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CHAPTER 11 CASE NO. SV 00 13471 KL )
- --------------------------------------------------------- General Concentration Payroll Tax Pre-Chapter
Account Account Account Account Payroll
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CASH ACTIVITY ANALYSIS
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A. Total Receipts Per All Prior Interim Statements $ 30,207,737.91 $23,485,048.71 $294,606.93 $0.00 $5,853,194.94
B. Less: Total Disbursements Per All Prior $ 30,207,737.91 $22,407,020.77 $294,606.93 $0.00 $5,846,618.22
Interim Statements
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C. Beginning Balance $ 0.00 $ 1,078,027.94 $ 0.00 $0.00 $ 6,576.72
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D. Receipts During Current Period
Per Attached Schedule (Not filed with Form 8K) $ 593,946.86 $ 812,736.18 $ 0.00 $0.00 -
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E. Balance Available $ 593,946.86 $ 1,890,764.12 $ 0.00 $0.00 $ 6,576.72
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F. Less: Disbursements During Period
Per Attached Schedule (Not filed with Form 8K) $ 593,946.86 $ 1,092,751.63 $ 0.00 $0.00 658.32
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G. Ending Balance $ 0.00 $ 798,012.49 $ 0.00 $0.00 $ 5,918.40
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Investment Professional CD 5-Month CD
Account Account Account Account
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CASH ACTIVITY ANALYSIS
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A. Total Receipts Per All Prior Interim Statements $4,068,751.58 $2,923,509.37 $355,957.03 $14,066,090.22
B. Less: Total Disbursements Per All Prior $3,370,422.45 $2,923,509.37 $355,957.03 $ 4,726,668.06
Interim Statements
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C. Beginning Balance $ 698,329.13 $ 0.00 $ 0.00 $ 9,339,422.16
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D. Receipts During Current Period
Per Attached Schedule (Not filed with Form 8K) 289,808.27 162,034.82 - 221,098.73
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E. Balance Available $ 988,137.40 $ 162,034.82 $ 0.00 $ 9,560,520.89
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F. Less: Disbursements During Period
Per Attached Schedule (Not filed with Form 8K) 162,034.82 162,034.82 - -
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G. Ending Balance $ 826,102.58 $ 0.00 $ 0.00 $ 9,560,520.89
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H. ACCOUNT INFORMATION
(1). General Account
(a) City National Bank 4605 Lankershim Blvd. No. Hollywood, Ca.
(b) 411952738
(2). Concentration Account
(a) City National Bank 4605 Lankershim Blvd. No. Hollywood, Ca.
(b) 411952886
(3). Payroll Account
(a) City National Bank 4605 Lankershim Blvd. No. Hollywood, Ca.
(b) 411952800
(4). Tax Account
(a) City National Bank 4605 Lankershim Blvd. No. Hollywood, Ca.
(b) 411952851
(5). Pre-Chapter Payroll Account
(a) Western Security Bank 4100 W. Alameda Ave.,Burbank, Ca.
(b) 001064088
(6). Investment Account
(a) City National Bank 4605 Lankershim Blvd. No. Hollywood, Ca.
(b) BHS-072281
(7). Professional Account
(a) City National Bank 4605 Lankershim Blvd. No. Hollywood, Ca.
(b) 411953459
(8). Certificate of of Deposit
(a) City National Bank 4605 Lankershim Blvd. No. Hollywood, Ca.
(b) 411956334
(9). 5-Month Liquid Certificate of of Deposit
(a) City National Bank 4605 Lankershim Blvd. No. Hollywood, Ca.
(b) 411955893
I. Other Monies On Hand: None
I, Ellen Gordon, Estate Representative, declare under penalty of perjury that
the information contained in the above Debtor in Possession Interim Statement is
true and complete to the best of my knowlege:
Dated: June 29, 2001 Signed: /s/ Ellen Gordon
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