EXHIBIT 99.1
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: 3-31-99
IN RE: :
CASE NO: 96-15177
Fretter, Inc. : Chapter 11
Judge Morgenstern-Clarren
:
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Debtor
:
As debtor in possession, I affirm:
1. That I have reviewed the financial statements attached hereto, consisting
of:
X Operating Statement (Form 2)
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X Balance Sheet (Form 3)
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X Summary of Operations (Form 4)
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X Monthly Cash Statements (Form 5)
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X Statement of Compensation (Form 6)
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and that they have been prepared in accordance with normal and customary
accounting practices, and fairly and accurately reflect the debtor's financial
activity for the period stated:
2. That the insurance as described in Section 4 of the Operating Instructions
and Reporting Requirements for Chapter 11 Cases is in effect; and, (if not,
attach written explanation)
3. That all postpetition taxes as described in Sections 1 and 14 of the
Operating Instructions and Reporting Requirements For Chapter 11 cases are
current. (If not, attach written explanation)
4. No professional fees (attorney, accountant, etc.) have been paid without
specific court authorization. Explain on separate sheet if not true.
I hereby certify, under penalty of perjury, that the information provided herein
is true and correct to the best of my information and belief.
Dated: 4/19/99 /s/ J. Michael McLean
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Debtor in Possession
Controller 248-213-3899
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Title Phone
OPERATING STATEMENT (P&L)
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(Accrual Basis)
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Debtor: Fretter, Inc. Case No: 96-15177
Month Ending: 3/31/99
Total
Current Month Since Filing
Total Revenue/Sales 0 532,663
Cost of Sales 0 505,226
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Gross Profit 0 27,437
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EXPENSES:
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Officer Compensation 3,057 399,817
Salary Expenses other Employees 13,997 482,303
Court-Ordered Stay Bonus 7,667 229,248
Employee Benefits & Pensions 0
Payroll Taxes 1,486 89,697
Other Taxes 0 85,454
Rent and Lease Expense 2,887 124,788
Interest Expense 0 4,340,722
Insurance 3,732 651,717
Automobile and Truck Expense 0
Utilities (gas, electric, phone, alarms) 1,225 179,445
Computer Service Bureau 1,333 37,363
Travel and Entertainment 644 23,620
Repairs and Maintenance 0 310,160
Advertising 0
Supplies, Office Expenses, etc. 19,393 504,239
Other: Specify Director & Trustee Fees 1,833 208,493
Other: Other Fees 2,400 38,619
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TOTAL EXPENSES: 59,654 7,705,685
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NET OPERATING PROFIT/(LOSS) (59,654) (7,678,248)
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Add: Non-Operating Income:
Interest Income 27,649 124,709
Gain/Loss on Sale of Real Estate (546,472) 7,969,925
Other Income 95,237 2,161,626
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Total (423,586) 10,256,260
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Less: Non-Operating Expenses:
Professional Fees 72,007 5,446,484
Other 0 645,106
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NET INCOME / (LOSS) (555,247) (3,513,578)
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BALANCE SHEET
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Debtor: Fretter, Inc. Case No: 96-15177
Month Ending: 3/31/99
ASSETS: Current Month Prior Month At Filing
Cash: 5,197,215 4,491,817 89,252
Inventory: 791,999
Accounts Receivable: ** 2,337,845 2,339,445 35,930,804*
Insider Receivables 0 3,555,136 7,424,547
Land and Buildings: 550,000 1,519,139 49,365,801
Furniture, Fixtures & Equip. 418,000
Accumulated Depreciation 0 (305,453) (10,623,681)
Other: Prepaids & misc. 202,934 207,655 807,689
Other: Utility deposits 6,000 6,000
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TOTAL ASSETS: 8,293,994 11,813,739 84,204,411
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LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 12,931 31,758
Wages and Salaries: 15,208 6,176
Taxes Payable 2,292 2,613
Other: Prof. fees, interest, etc. 3,932,060 3,889,252 1,390
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TOTAL Postpetition Liab.: 3,962,491 3,929,799 1,390
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 0 0 29,002,401
All Other Secured Liab. 0 0 7,371,875
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TOTAL Secured Liabilities: 0 0 36,374,276
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 473,660 434,239 1,132,770
Unsecured Liabilities 5,986,753 6,085,486 6,849,397
Other: Accrued Liabilities 4,144,358 4,165,318 5,449,917
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TOTAL Prepetition Liab. 10,604,771 10,685,133 13,432,084
=========== =========== ===========
Redeemable Preferred Stock 0 48,265,040 48,265,040
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Equity:
Owners' Capital: 0 1,692,451 1,692,451
Retained Earnings-Pre Pet. (2,759,690) (49,800,353) (15,560,830)
Retained Earnings-Post Pet. (3,513,578) (2,958,331) 0
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TOTAL Equity: (6,273,268) (51,066,233) (13,868,379)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 8,293,994 11,813,739 84,204,411
=========== =========== ===========
______________________________
* Includes contingent receivable from Silo, Inc.,
collectibility indeterminate.
** Amounts due from subsidiary companies, collectibility
indeterminate.
SUMMARY OF OPERATIONS
---------------------
Period Ended: 3/31/99
Debtor: Fretter, Inc. Case No: 96-15177
Schedule of Postpetition Taxes Payable
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Beginning Accrued/ Payments/ Ending
Balance Withheld Deposits Balance
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Income Taxes Withheld:
Federal: 0 2,846 2,846 0
State: 653 664 1,317 0
Local:
FICA Withheld: 0 1,154 1,154 0
Employers FICA: 0 1,154 1,154 0
Unemployment Tax:
Federal: 153 15 0 168
State: 1,807 317 0 2,124
Sales, Use & Excise Taxes 0 0
Property Taxes 0 0 0 0
Workers' Compensation
Other:
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TOTALS 2,613 6,150 6,471 2,292
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AGING OF ACCOUNTS RECEIVABLE
AND POSTPETITION ACCOUNTS PAYABLE
Age in Days 0-30 30-60 Over 60
PostPetition
Accounts Payable 12,931
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Accounts Receivable 2,337,845
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For all postpetition accounts payable over 30 days old, please attach a sheet
listing each such account, to whom the account is owed, the date the account was
opened, and the reason for non payment of the account.
Describe events or factors occurring during this reporting period materially
affecting operations and formulation of a plan of Reorganization.
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MONTHLY CASH STATEMENT
Debtor: Fretter, Inc. Statement for the period:
Case #: 96-15177 From: 3-1-99 To: 3-31-99
Cash Activity Analysis (Cash Basis Only):
General Payroll Tax Cash Coll. B.T.
Acct. Acct. Acct. Acct. (B.T.) Direct(1)
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A. Beginning Balance: 57,635.10 5,491.19 5,097.16 0.00 0.00
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B. Receipts. Attach
Separate Schedule: 776,990.36 10,219.82 6,149.54 0.00 0.00
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C. Balance Available
(A + B): 834,625.46 15,711.01 11,246.70 0.00 0.00
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D1. Less Cash Transfers 663,015.00 0.00 0.00 0.00 0.00
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D2. Less Disbursements
Attach separate
schedule: 98,899.52 10,224.03 6,474.89 0.00 0.00
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E. Ending Balance
(C-D.1-D.2): 72,710.94 5,486.98 4,771.01 0.00 0.00
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(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT):
General Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38120-0
Payroll Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38024-4
Tax Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38128-3
Other monies on hand (specify type and location) (i.e., CD's petty cash):
BT Collateral Acct. - Old Kent Bank, Acct. No 229377
BT Direct - BT cash collateral is forwarded directly to B.T.
Date:
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Debtor in Possession
MONTHLY CASH STATEMENT
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Debtor: Fretter, Inc. Statement for the period:
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Case No.: 96-15177 From: 3-1-99 To: 3-31-99
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Cash Activity Analysis (Cash Basis Only):
NBD
Warranty
General NBD Certificate
Savings Certificate of of
Acct. Deposit Deposit
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A. Beginning Balance: 119,149.28 4,304,444.44 0.00
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B. Receipts. Attach Separate Schedule: 373.18 526,974.99 163,315.71
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C. Balance Available (A+B): 119,522.46 4,831,419.43 163,315.71 0.00 0.00
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D.1. Less Cash Transfers 0.00 0.00 0.00 0.00
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D.2. Less Disbursments Attach separate
schedule: 12.00 0.00 0.00 0.00 0.00
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E. Ending Balance (C-D.1.-D.2.): 119,510.46 4,831,419.43 163,315.71 0.00 0.00
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(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
General Savings Account
1. Depository Name & Location Michigan National Bank, Brighton, MI
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2. Account Number 4707-38293-5
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Certificate of Deposit
1. Depository Name & Location NBD Bank, Southfield, MI
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2. Account Number 53315040, 53315115, 53315180
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Certificate of Deposit
1. Depository Name & Location NBD Bank, Southfield, MI
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2. Account Number 53315396, 53315321
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Other monies on hand (specify type and location)(i.e., CD's petty cash):
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Date:
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Debtor in Possession
MONTHLY STATEMENT OF COMPENSATION
---------------------------------
The following information is to be provided for each shareholder,
officer, director, manager, insider, or owner that is employed by the debtor in
possession. Attach additional pages if necessary.
Name: J. Michael McLean Capacity: Principal
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X Officer
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Director
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Insider
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Detailed Description of Duties: As Controller, directs accounting, payroll,
benefit plans and tax filings as well as assists in cash flow planning
Current Compensation Paid:
Weekly or Monthly
3,055.66
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Current Benefits Received:
Weekly or Monthly
Vacation Pay ------ --------
Holiday Pay ------ --------
Retirement ------ --------
Company Vehicle ------ --------
Entertainment ------ --------
Travel ------ --------
Other Benefits ------ --------
CURRENT TOTAL:
Weekly or Monthly
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/s/ J. Michael McLean
Dated: 4/19/99 -------------------------------------
Principal, Officer, Director, Insider
LIST OF OMITTED SCHEDULES
1. Schedule of Michigan National Bank March 1999 Cash Receipts (Account Number
4707-38120-0)
2. Schedules of Michigan National Bank March 1999 Cash Disbursements, Account
Reconciliation and Outstanding Check List (Account Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period March 1, 1999
to March 31, 1999 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period March 1, 1999
to March 31, 1999 (Account Number 4707-38024-4)
5. Schedules of Michigan National Bank Payroll Account March 1999 Cash
Receipts and Disbursements and Account Reconciliation (Account Number 4707-
38024-4)
6. Schedules of Michigan National Bank Tax Account March 1999 Cash Receipts
and Disbursements and Account Reconciliation (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period March 1, 1999
to March 31, 1999 (Account Number 4707-38128-3)
8. Schedule of Bankers Trust March 1999 Cash Receipts
9. Schedules of Michigan National Bank General Savings Account March 1999
Cash Receipts and Disbursements (Account Number 4707-38293-5)
10. Michigan National Bank Statement of Account for the Period March 1, 1999 to
March 31, 1999 (Account Number 4707-38293-5)
11. Schedule of NBD Bank Certificate of Deposit and Warranty Claims Certificate
of Deposit March 1999 Cash Receipts