Exhibit 2
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
MONTHLY REPORTING REQUIREMENTS
All Chapter 11 debtors must serve the U.S. Trustee with the documents and
reports identified below no later than the 15th day of the month following the
end of the month covered by the report.
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
For the month of: February 1997
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Document Previously Explanation
Required Documents Attached Submitted Attached
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1. Income Statement. (x) ( ) ( )
2. Balance Sheet. (x) ( ) ( )
3. Statement of Cash Receipts and (x) ( ) ( )
Disbursements.
4. Statement of Aged Receivables. (x) ( ) ( )
5. Statement of Aged Payables. (x) ( ) ( )
6. Statement of Operations, Taxes, (x) ( ) ( )
Insurance and Personnel.
7. Tax Receipts. (x) ( ) ( )
8. Other documents/ reports as required ( ) ( ) ( )
by the U.S. Trustee:
======================
======================
The undersigned individual certifies under penalty of perjury (28 U.S.C. Section
1746) that to the best of the individual's knowledge, the documents appended are
true and correct.
By:/s/ Dated:3/17, 1997
Acting Chief Financial Officer
Title of Debtor Representative
Exhibit 3
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
INCOME STATEMENT Accrual Basis
For the Month Ending: February 28, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Current Prior
Month Month
Gross Sales 100,000 100,000
Less: Returns and Allowances
Net Sales 100,000 100,000
Cost of Sales: (1) _______ _______
Beginning Inventory _______ _______
Add: Purchases _______ _______
Less: Ending Inventory _______ _______
Cost of Goods Sold _______ _______
Other Operating Expenses: _______ _______
Officers Salaries 77,406 75,125
Direct Labor/Salaries 11,712 11,712
Benefits/Payroll Taxes 20,470 19,890
Supplies _______ _______
Insurance _______ _______
Rent 3,717 3,717
Depreciation & Amortization 5,000 5,000
General & Administrative 23,295 48,579
Net Operating Profit (Loss) (41,600) (64,023)
Add: Other Income (2) $ 30,147* $ 40,204*
Less: Other Expenses _______ _______
Interest Expense _______ _______
Other (3) 0 0
Total Other Expenses 0 0
Gain (Loss) Sale of Assets _______ _______
Profit (Loss) Before Taxes (11,453) (23,819)
Income Taxes _______ _______
Net Profit (Loss) (11,453) (23,819)
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1. If perpetual inventory records are not maintained, use of the prior period
gross profit percentage is acceptable but must be disclosed.
2. Identify the source if the amount is $500.00 or more.
3. Provide details on "other" expenses over $500.00.
* Other Income
Interest income on Note receivable from CGMI
Exhibit 4
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
BALANCE SHEET As of 1/31/97
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
ASSETS Current Month Prior Month
Current Assets
Cash (includes $300 cash on hand) $ 130,622 $ 127,232
Inventory -- --
Accounts Receivable 2,300,000 2,200,000
Notes Receivable 3,950,567 4,200,420
Other (attach list) Deposits and 443,228 457,758
Prepaids
Total Current Assets 6,824,417 6,985,410
Fixed Assets
Property and Equipment 135,698 135,698
Accumulated Depreciation 63,262 58,262
Total Fixed Assets 72,436 77,436
Other Assets (attach list) 10,230,936 10,075,936
TOTAL ASSETS 17,127,789 17,138,782
LIABILITIES
Post-petition Liabilities:
Accounts Payable 7,999 7,539
Notes Payable 0 0
Rents & Leases Payable 0 0
Taxes Payable 0 0
Accrued Interest 0 0
Other _______________ -- --
Total Post-petition Liabilities: 7,999 7,539
Pre-petition Liabilities:
Unsecured Debt 28,765,925 28,765,925
Notes Payable - Secured 103,635,927 103,635,927
Other Debt (priority claims)
Taxes 0 0
Wages 8,000 8,000
Deposit -- --
Other _______________ -- --
Total Pre-petition Liabilities 132,409,852 132,409,852
TOTAL LIABILITIES 132,410,598 132,410,598
OWNER EQUITY (DEFICIT)
Preferred Stock
Common Stock 37,617,099 37,617,099
Capital Surplus 7,877,002 7,877,002
Retained Earnings (160,784,163) (160,772,710)
-------- --------
PARTNERS' INVESTMENT (DEFICIT) ___________ ___________
TOTAL OWNER EQUITY (NET WORTH) (115,290,062) (115,278,609)
TOTAL LIABILITIES AND OWNER EQUITY 17,127,789 17,138,782
NOTES:
1. Explain significant events, including contingent liabilities and pending
lawsuits, which may have a material effect on the financial condition of
the debtor.
2. Value assets at lower of cost or market and identify which method is being
used.
3. Explain the method of inventory valuation if other than the lower of cost
or market.
4. Identify any changes in stock holdings of "insiders" during the reporting
period.
Capital Gaming International, Inc.
Schedule of Other Assets
31-Dec-96
Cash escrow held by bond trustee $ 937,047
Cash escrow held by CCCD/RCJV bankruptcy trustee -- (1)
Advances to CDGC subsidiary 2,499,975
Intangible assets 6,793,914
Total 10,230,936
(1) $500,000 escrow balance subject to offset by CCCD/RCJV bankruptcy trustee
and also subject to claims of Capital Gaming International, Inc. secured
creditors.
Exhibit 5
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Month Ending: February 28, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Account Name: Capital Gaming International, Inc.
Depository:
CASH RECEIPTS
(attach additional sheets as necessary)
Date Description (Source) Amount
---- -------------------- ------
Beginning Cash Balance $126,932
2/21/97 Void checks 425
2/10/97 CGMI - Loan Repayment 100,000
2/26/97 CGMI - Loan Repayment 180,000
Total Cash Receipts $280,425
CASH DISBURSEMENTS
(attach additional sheets as necessary)
Date Description (Source) Amount
---- -------------------- ------
See Attached
None
Total Cash Disbursements $277,035
Adjustments (explain) $
Ending Cash Balance (must be reconcilable to the bank
statement for account cited above) $130,322
ACTIVE CASH ACCOUNTS: Midlantic checking Register through 02/28/97:
Date No./Ref. Payee Description Amount
- --------- ---------- ------------------------------------- ------------------------------------------ ----------
2/1/9 payroll Sylvia Desantis-DeCamp direct deposit Feb Payroll 2,223.00
2/1/97 payroll Edward Tracy direct deposit Feb Payroll 23,829.58
2/1/97 payroll WILLIAM PAPAZIAN direct deposit Feb Payroll 9,983.97
2/1/97 payroll Bank wire tax deposit 39,491.47
2/1/97 payroll Suzanne Glass ck 334 payroll 1,787.87
2/1/97 payroll Cory Morowitz ck 335 payroll 6,298.20
2/1/97 payroll Janine Sheldrake ck 336 payroll 1,706.60
2/1/97 payroll Col. Pagano ck 337 payroll 4,060.58
2/3/97 5690 U.S. Trustee Quarterly Fee: Fourth Quarter 1996 250.00
2/10/97 5691 PCS-Computers telephone 516.75
2/10/97 5692 A Business Conference-Call, Inc. telephone 125.65
2/10/97 5693 Air Touch Cellular telephone 225.40
210/97 5694 American Stock Transfer & Trust Monthly Transfer Fee: February 1997 500.00
2/10/97 5695 Carey Limousine Customer No. 711051/Res No.: 07429024/ 76.40
2/10/97 5696 Daphne Leaumont Consulting Services: January 27, 350.00
1997-January 31, 19097
2/10/97 5697 Greater Media Cable Service: February 4, 1997-March 3, 1997 102.98
2/10/97 5698 Keystone Natural Water Ticket No. 245987 11.50
2/10/97 5699 Merrill Lynch 401K payment 8,073.32
2/10/97 5700 Mossman Business Machines service/rent 596.46
2/10/97 5701 Nationwide Cellular Service 917-847-3731/Irving G. Davis Jr. 98.60
2/10/97 5702 Pitney Bowes Inc. Account No.: 1547-9379-86-7/Meter 137.46
Rental: 3/16/97-6/15/97
2/10/97 5703 Print Art Job No.: 51803 1,384.36
2/10/97 5704 Sprint Customer No.: 176310466/Edward M. Tracy 49.24
2/10/97 5706 Bell Atlantic, NJ 809 383-3333-333-21 1,926.30
2/10/97 5707 Bell Atlantic-New Jersey telephone 158.13
2/11/97 wire Capital Development Gaming Corp. Transfer/loan 80,000.00
2/11/97 5708 Depository Trust Company Expense 70.00
2/12/97 5709 Petty Cash Office Usage 500.00
2/12/97 5710 Sir Speedy Copies for Distribution 563.13
2/18/97 5711 Daphne Leaumont Consulting Services: February 350.00
10-February 14, 1997
2/21/97 5713 PCS-Computers Service 527.88
3/26/97 wire Capital Development Gaming Corp. Transfer/Loan 75,000.00
2/26/97 5714 A Business Conference-Call, Inc. Telephone 723.80
2/26/97 5715 Air Touch Cellular Account No.: 1042-2888849/Cellular No.: 58.37
(970) 379-6612
2/26/97 5716 Bell Atlantic - PA 215 925-7718-741 37Y (Edward M. Tracy) 96.03
2/26/97 5717 Bell Atlantic NYNEX Mobile Account No.: 061927843/Billing No.: 917 133.11
886-3939
2/26/97 5718 Bernstein, Simpson, Gilbert & Health Insurance: Cory Morowitz 740.81
Morowitz
3/26/97 5719 Cellular one - Mercer County Telephone 127.57
2/26/97 5720 CompuServe Incorporated Account No.: 7534725/Invoice No: 61.70
9701223254
2/26/97 5721 Disclosure Info Centers Monitor Fee: January 1997 60.00
2/26/97 5722 Ikon Capital Account No. 00000082492-97622/Invoice 227.43
No.: 36867486
2/26/97 5723 Lackland Self Storage Unit F-458 109.00
2/26/97 5724 Lewan & Associates Customer No: 451841/Invoice No: 201.42
45184106197
2/26/97 5725 NYNEX 212 838-4493 078 720/Jack IG Davis 172.69
2/26/97 5726 Paine Webber Cusip No: 140180100 165.10
2/26/97 5727 Philadelphia Depository Trust Co. Customer No: 140180/Proxy Listing 92.00
2/26/97 5728 Transamerica Assurance Company Premium Calculation: March 1997/Policy 1,323.96
No.: STL5190
2/26/97 5729 United Parcel Services Invoice No. 8200040519-077/Shipper No. 19.00
8200040519
2/26/97 5730 United States Realty & Investment Office Rent: March 1997 3,717.00
Co.
3/26/97 5731 US West Direct Account No.: 005743541001/Invoice No.: 11.72
000004001230
2/26/97 5732 West Publishing Corporation Account No: 521-206-082/Invoice Summary: 3,894.35
1/1/97-1/31/97
2/26/97 5733 AT&T Wireless Services Account No: 20157426/Telephone No.: 1,699.22
970-948-2764
2/28/97 Bank charge Service Charge 138.85
2/28/97 Bank Federal Express record fedex payments charged to acct 1,041.75
charge
----------
Total 277,034.55
Exhibit 6
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF AGED RECEIVABLES
For the month Ending: January 31, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
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Total Due: Current Past Due Past Due Past Due
(0-30 Days) (31-60 Days) (61-90 Days) (91+ Days)
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Pre-petition
CGMI
2,074,194 0 0 74,194 2,000,000
Post-petition
CGMI
225,806 100,000 100,000 25,806
Totals
2,300,000 100,000 100,000 100,000 1,900,000
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Notes:
1. Please explain what actions have been taken to collect receivables more
than 60 days past due.
Receivables are due from subsidiary and will be paid when cash flow is
available.
2. Provide details on all receivables due from any affiliate of debtor in an
attachment.
Receivables arise from management services agreement.
ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from prior report) 2,200,000
2. New Accounts this Month 100,000
3. Balance (add lines 1 and 2) 2,300,000
4. Amount Collected on Prior Accounts 0
5. Closing Balance (subtract line 4 from line 3) 2,300,000
Exhibit 7
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF AGED PAYABLES
For the month Ending: December 31, 1996
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
================================================================================
Account Name: Description: Current Past Due Past Due Past Due
(0-30 Days) (31-60 Days) (61-90 Days) (91+ Days)
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All current 7,999
payables
TOTALS: 7,999
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You may combine all payables less than 30 days past due and show on one line.
Note:Please include only post-petition debts and explain why accounts over 30
days past due have not been paid.
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ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from prior report) 7,539
2. Total New Indebtedness Incurred This Month 7,999
3. Balance (add lines 1 and 2) 15,538
4. Amount Paid on Prior Accounts Payable 7,539
5. Closing Balance (subtract line 4 from line 3) 7,999
Exhibit 8
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF OPERATIONS, TAXES, INSURANCE AND PERSONNEL
For the month Ending: February 28, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
1. What efforts have been made toward the preparation of a plan of
reorganization?
A Plan of Reorganization was filed by the Debtor simultaneously with filing the
Voluntary Petition (December 23, 1996)
2. 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
_X_ No
Identify amount, who was paid and date paid:------------------------------------
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3. Provide a narrative report of significant events affecting debtor's
business (attach separate sheet if necessary).
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4. List any payment(s) on debt that has been personally guaranteed by any
principal, partner or officer of the business.
N/A
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5. If assets have been sold in other than the ordinary course of business,
please provide details as to the assets sold, date of sale, total sales
price, deductions (i.e. commissions), and net amount received.
N/A
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6. STATUS OF TAXES N/A - no post-petition taxes withheld or owed.
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Amount Post-Petition
Withheld or Taxes
Accrued Amount Paid Date Paid Past Due
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FEDERAL TAXES
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FICA 11,514.58 11,514.58 February '97 None
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Withholding 23,659.26 23,659.26 February '97 "
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Unemployment 86.36 86.36 February '97 "
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Income
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Other
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STATE TAXES
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Dept. of Labor & 3,801.99 3,801.99 February '97 None
Industries
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Income
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Employment Sec. 1,482.13 1,482.13 February '97 None
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Dept. of Revenue
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B&O
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Sales
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Excise
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OTHER TAXES
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City Business
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License
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Personal Property
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Real Property
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Other (List)
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Explain reason for any past due post-petition taxes:
N/A
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7. SCHEDULE OF SALARY AND OTHER PAYMENTS TO PRINCIPALS/ EXECUTIVES/INSIDERS*
Nature of
Payee Name Position Payment Amount
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Edward M. Tracy President and CEO Direct Deposit $41,250
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Clinton L. Pagano Exec. VP or Compliance Check $ 8,333
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William S. Papazian Sr. VP and Gen. Counsel Direct Deposit $16,667
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Cory Morowitz Acting CFO Check $11,156
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$77,406
List accrued salaries whether or not paid and any draws of any kind or perks
such as car etc. made to or for the benefit of any proprietor, owner, partner,
shareholder, officer, director or insider.
8. SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS
Appointment Amount Paid Date of Court Aggregate Estimated
Date This Month Approval Received Balance Due
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Debtor's Counsel $ None $ $ None
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Creditors' $ None $ $ None
Committee Counsel
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Trustee Counsel $ None $ $ None
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Accountant $ None $ $ None
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Other $ None $ $ None
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Identity fees accrued but not paid:
Invoices have not yet been presented
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9. Explain any changes in insurance coverage which occurred during the
reporting period.
There were no changes in insurance coverage.
10. PERSONNEL
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Full Time Part Time
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Total number of employees at beginning of period 8 0
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Number hired during the period 0 0
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Number terminated or resigned during period 0 0
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Total number of employees on payroll at period end 8 0
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Total payroll for the period $89,118