INVESTMENT INCOME:
Interest income $ 39,222 (1)
Commitment fee 5,708
-----------------
TOTAL INVESTMENT INCOME 44,930
-----------------
EXPENSES:
Interest expense 0
Amortization expense 43,027 (2)
General and administrative 0
-----------------
TOTAL EXPENSES 43,027
-----------------
NET INVESTMENT INCOME 1,903
UNREALIZED APPRECIATION (DEPRECIATION)
OF LOAN VALUE 0
-----------------
NET INCOME (LOSS) $ 1,903
=================
(1) Interest income on Loans receivable for the period June 7 thru June 30, 2002
(2) Monthly amortization of capitalized Debt Issuance and Placement Fee expense
over the life of the offering.
ASSETS:
Cash $ 1,701,719
Loans receivable, at fair value 2,915,676
Investment in Subsidiary 533,493 (1)
Due from Parent 1,345,000 (2)
Debt issuance costs, net 1,429,757 (3)
TOTAL ASSETS $ 7,925,645
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 98,236 (4)
Accrued expenses 130,189 (5)
Subordinated bonds 7,207,056 (6)
TOTAL LIABILITIES 7,435,481
COMMITMENTS AND CONTINGENCIES 0
STOCKHOLDERS' EQUITY:
Common stock, $1 par value, 1,000 shares authorized,
issued and outstanding 1,000
Additional paid-in capital 1,557,535
Accumulated deficit (1,068,371)(7)
TOTAL STOCKHOLDERS' EQUITY 490,164
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,925,645
(1) IBF VI Secured Lending Corporation has a 100% ownership interest in IBF VI
Asset Securitization Corporation, a bankruptcy remote nonrecourse special
purpose vehicle.
(2) Pre-petition intercompany receivable
(3) Capitalized costs associated with issuance of Investor notes
(4) Accounts Payable (Trade Payables) are broken down as follows:
Pre-petition $ 98,232 ( of which $94,084 is in dispute)
Post-petition 4
(5) Investor interest thru June 7 totals $47,135.
(6) Subordinated bonds includes reinvested interest of $11,379 accrued thru
June 7, 2002.
(7) Accumulated deficit includes extraordinary costs (SEC defense related
costs) of $575,000.
NOTES:
A. This is a draft schedule subject to year-end adjustments made in consultation
with our auditors
B. Loan loss reserves for 2001 have not yet been established and will be
established subject to consultation with our auditors and valuation
consultants.
C. All information on the Balance Sheet is subject to revision pending
completion of the year end audit.
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 1,903 (1)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization 43,027 (2)
Interest on subordinated bonds -
Unrealized (appreciation) depreciation of loan value -
Changes in operating assets and liabilities:
Loans Receivable 80,781
Accounts payable (4)
Accrued expenses -
-----------------
CASH FLOW PROVIDED BY OPERATING ACTIVITIES 125,707
-----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Collection on mortgage loans -
Purchase of loan receivable -
-----------------
CASH FLOW USED IN INVESTING ACTIVITIES -
-----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt issuance costs incurred -
Reimbursement for expenses -
Payments to affiliate -
Repayments of subordinated bonds -
Proceeds from issuance of subordinated bonds -
CASH FLOW USED IN FINANCING ACTIVITIES -
-----------------
NET INCREASE (DECREASE) IN CASH 125,707
CASH, Beginning 1,576,012
-----------------
CASH, Ending $ 1,701,719
=================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the periods for:
Interest $ -
=================
=================
Taxes $ -
=================
(1) See Income statement, net income
(2) Amortization of Debt issuance and Placement fee. See Income statement (2)
INVESTMENT INCOME:
Interest income $ 5,697
Commitment fee -
-----------------
TOTAL INVESTMENT INCOME 5,697
-----------------
EXPENSES:
Interest expense -
Amortization expense 21,663 (1)
General and administrative 17,889
-----------------
TOTAL EXPENSES 39,552
-----------------
NET INVESTMENT INCOME (33,855)
UNREALIZED APPRECIATION (DEPRECIATION)
OF LOAN VALUE (22,814)(2)
-----------------
NET INCOME (LOSS) $ (56,669)
=================
(1) Monthly amortization of capitalized Debt Issuance and Placement Fee expense
over the life of the offering. (2) Represents reversal of accruals for the
period June 7 through June 30 due to change in circumstances occasioned by
Chapter 11 filing .
ASSETS:
Cash $ 868,109
Loans receivable, at fair value 3,717,607
Investment in Subsidiary 540,936 (1)
Due from Parent 1,345,000 (2)
Debt issuance costs, net 1,408,094 (3)
Prepaid Expenses 15,026
TOTAL ASSETS $ 7,894,772
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 116,589 (4)
Accrued expenses 130,189
Subordinated bonds 7,207,056
TOTAL LIABILITIES 7,453,834
COMMITMENTS AND CONTINGENCIES 0
STOCKHOLDERS' EQUITY:
Common stock, $1 par value, 1,000 shares authorized,
issued and outstanding 1,000
Additional paid-in capital 1,557,535
Accumulated deficit (1,117,597)(5)
TOTAL STOCKHOLDERS' EQUITY 440,938
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,894,772
(1) IBF VI Secured Lending Corporation has a 100% ownership interest in IBF VI
Asset Securitization Corporation, a bankruptcy remote nonrecourse special
purpose vehicle.
(2) Pre-petition intercompany receivable
(3) Capitalized costs associated with issuance of Investor notes
(4) Accounts Payable (Trade Payables) are broken down as follows:
Pre-petition $ 100,332 (of which $ 96,749 is in dispute)
Post-petition 16,257
(5) Accumulated deficit includes extraordinary costs (SEC defense related costs)
of $1,820,000.
NOTES:
A. This is a draft schedule subject to year-end adjustments made in
consultation with our auditors
B. Loan loss reserves for 2001 have not yet been established and will be
established subject to consultation with our auditors and valuation
consultants.
C. All information on the Balance Sheet is subject to revision pending
completion of the year end audit.
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (56,669)(1)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Amortization 21,663 (2)
Interest on subordinated bonds -
Unrealized (appreciation) depreciation of loan value -
Changes in operating assets and liabilities:
Loans Receivable (799,469)
Accounts payable (14,161)
Prepaid expense 15,026
-----------------
CASH FLOW PROVIDED BY OPERATING ACTIVITIES (833,610)
----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Collection on mortgage loans -
Advances to affiliate -
Purchase of loan receivable -
-----------------
CASH FLOW USED IN INVESTING ACTIVITIES -
-----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Debt issuance costs incurred -
Reimbursement for expenses -
Payments to affiliate
Repayments of subordinated bonds -
Proceeds from issuance of subordinated bonds -
CASH FLOW USED IN FINANCING ACTIVITIES -
-----------------
NET INCREASE (DECREASE) IN CASH (833,610)
CASH, Beginning 1,701,719
-----------------
CASH, Ending $ 868,109
=================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the periods for:
Interest $ -
=================
Taxes $ -
=================
Monthly Disbursements $ 739,642
=================
(1) See Income statement, net income
(2) Amortization of Debt issuance and Placement fee. See Income statement (2)