1
EXHIBIT 99.3
CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS
CASE NUMBER: 401-40785-BJH-11
JUDGE: BARBARA J. HOUSER
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
-------- -----
FORT WORTH DIVISION
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MONTHLY OPERATING REPORT
MONTH ENDING: MARCH 31, 2001
--------------
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS - 1 THROUGH ACCRUAL BASIS - 7) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS
BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ JOSEPH P. TOMCZAK TREASURER
- ----------------------------------------- ---------------------
Original Signature of Responsible Party Title
JOSEPH P. TOMCZAK APRIL 27, 2001
- ----------------------------------------- ---------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR
- ----------------------------------------- ---------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER APRIL 27, 2001
- ----------------------------------------- ---------------------
Printed Name of Preparer Date
2
CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 1
CASE NUMBER: 401-40785-BJH-11
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT FEB-01 MAR-01 MONTH
- ------ ------------ ------------ ------------ ------------
1. Unrestricted Cash 232 232 5,010
2. Restricted Cash 0
3. Total Cash 232 232 5,010 0
4. Accounts Receivable (Net)
5. Inventory
6. Notes Receivable
7. Prepaid Expenses
8. Other (Attach List) 0 0 0 0
9. Total Current Assets 232 232 5,010 0
10. Property, Plant & Equipment
11. Less: Accumulated
Depreciation/Depletion
12. Net Property, Plant & Equipment 0 0 0 0
13. Due From Insiders
14. Other Assets - Net of Amortization
(Attach List) 95,356,800 86,653,739 86,435,679
15. Other (Attach List) 14,496,631 14,496,631 14,496,631 0
16. Total Assets 109,853,663 101,150,602 100,937,320 0
POST PETITION LIABILITIES
17. Accounts Payable 0 0
18. Taxes Payable
19. Notes Payable
20. Professional Fees
21. Secured Debt
22. Other (Attach List) 0 0 0
23. Total Post Petition Liabilities 0 0 0
PRE PETITION LIABILITIES
24. Secured Debt (FOOTNOTE) 75,885,064 63,113,388 63,113,388
25. Priority Debt
26. Unsecured Debt
27. Other (Attach List) 328,039,345 320,345,497 321,190,468 0
28. Total Pre Petition Liabilities 403,924,409 383,458,885 384,303,856 0
29. Total Liabilities 403,924,409 383,458,885 384,303,856 0
EQUITY
30. Pre Petition Owners' Equity (294,070,746) (294,070,746)
31. Post Petition Cumulative Profit Or (Loss) (1,009,211) (2,067,464)
32. Direct Charges To Equity (FOOTNOTE) 12,771,674 12,771,674
33. Total Equity (282,308,283) (283,366,536) 0
34. Total Liabilities and Equity 101,150,602 100,937,320 0
This form x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO HOLDING, INC. SUPPLEMENT TO
CASE NUMBER: 401-40785-BJH-11 ACCRUAL BASIS - 1
COMPARATIVE BALANCE SHEET
SCHEDULED MONTH MONTH
ASSETS AMOUNT FEB-01 MAR-01 MONTH
- ------ ------ ------ ------ -----
A.
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 8 0 0 0 0
A. Goodwill: SSS 6,097,280 6,082,516 6,067,753
B. Goodwill: Bowen 13,569,437 13,537,854 13,506,272
C. Goodwill: BTE 1,657,846 1,653,625 1,649,404
D. Goodwill: Shelter 74,032,237 65,379,744 65,212,250
E.
TOTAL OTHER ASSETS NET OF
AMORTIZATION - LINE 14 95,356,800 86,653,739 86,435,679 0
A. Investment in Subsidiaries 14,496,631 14,496,631 14,496,631
B.
C.
D.
E.
TOTAL OTHER ASSETS - LINE 15 14,496,631 14,496,631 14,496,631 0
POST PETITION LIABILITIES
A.
B.
C.
D.
E.
TOTAL OTHER POST PETITION
LIABILITIES - LINE 22 0 0 0
PRE PETITION LIABILITIES
A. Interco. Payables (FOOTNOTE) 199,539,345 191,845,497 192,692,806
B. 10 3/8% Senior Sub. Notes 105,000,000 105,000,000 105,000,000
C. Sr. Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000
D.
E.
TOTAL OTHER PRE PETITION
LIABILITIES - LINE 27 328,039,345 320,345,497 321,192,806 0
4
CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40785-BJH-11
INCOME STATEMENT
MONTH MONTH QUARTER
REVENUES FEB-01 MAR-01 MONTH TOTAL
- -------- ------ ------ ----- -------
1. Gross Revenues 0
2. Less: Returns & Discounts 0
3. Net Revenue 0 0 0
COST OF GOODS SOLD
4. Material 0
5. Direct Labor 0
6. Direct Overhead 0
7. Total Cost Of Goods Sold 0 0 0
8. Gross Profit 0 0 0
OPERATING EXPENSES
9. Officer / Insider Compensation 0
10. Selling & Marketing 0
11. General & Administrative 2,111 2,111
12. Rent & Lease 500 500
13. Other (Attach List) 271 271
14. Total Operating Expenses 0 2,882 2,882
15. Income Before Non-Operating
Income & Expense 0 (2,882) (2,882)
OTHER INCOME & EXPENSES
16. Non-Operating Income (Att List) 843,229 375,456 1,218,685
17. Non-Operating Expense (Att List) (2,425,531) (1,212,766) (3,638,297)
18. Interest Expense 0
19. Depreciation / Depletion 0
20. Amortization (218,060) (218,060) (436,120)
21. Other (Attach List) 791,150 0 791,150
22. Net Other Income & Expenses (1,009,212) (1,055,370) (2,064,582)
REORGANIZATION EXPENSES
23. Professional Fees 0
24. U.S. Trustee Fees 0
25. Other (Attach List) 0
26. Total Reorganization Expenses 0 0 0 0
27. Income Tax 0
28. Net Profit (Loss) (1,009,212) (1,058,252) (2,067,464)
This form does x does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO HOLDING, INC. SUPPLEMENT TO
CASE NUMBER: 401-40785-BJH-11 ACCRUAL BASIS - 2
INCOME STATEMENT
MONTH MONTH QUARTER
OPERATING EXPENSES FEB-01 MAR-01 MONTH TOTAL
- ------------------ ------------ ------------ ------------ ------------
A. Taxes 271 271
B. 0
C. 0
D. 0
E. 0
TOTAL OTHER OPERATING
EXPENSES - LINE 13 0 271 0 271
OTHER INCOME & EXPENSES
A. Intercompany Royalties 843,229 375,456 1,218,685
B. 0
C. 0
D. 0
E. 0
TOTAL NON-OPERATING
INCOME - LINE 16 843,229 375,456 0 1,218,685
A. Intercompany Interest (2,425,531) (1,212,766) (3,638,297)
B. 0
C. 0
D. 0
E. 0
TOTAL NON-OPERATING
EXPENSE - LINE 17 (2,425,531) (1,212,766) 0 (3,638,297)
A. Goodwill 8,485,000 8,485,000
B. Interco. Credit (7,693,850) (7,693,850)
C. 0
D. 0
E. 0
TOTAL OTHER EXPENSE -
LINE 21 791,150 0 0 791,150
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CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 3
CASE NUMBER: 401-40785-BJH-11
CASH RECEIPTS AND MONTH MONTH QUARTER
DISBURSEMENTS FEB-01 MAR-01 MONTH TOTAL
- ----------------- ------------ ------------ ------------ ------------
1. Cash - Beginning Of Month SEE ATTACHED SUPPLEMENT AND FOOTNOTE
RECEIPTS FROM OPERATIONS
2. Cash Sales 0
COLLECTION OF ACCOUNTS RECEIVABLE
3. Pre Petition 0
4. Post Petition 0
5. Total Operating Receipts 0 0 0 0
NON-OPERATING RECEIPTS
6. Loans & Advances (Interco. Transfer) 0
7. Sale of Assets 0
8. Other (Attach List) 0
9. Total Non-Operating Receipts 0 0 0 0
10. Total Receipts 0 0 0 0
11. Total Cash Available 0 0 0 0
OPERATING DISBURSEMENTS
12. Net Payroll 0
13. Payroll Taxes Paid 0
14. Sales, Use & Other Taxes Paid 0
15. Secured / Rental / Leases 0
16. Utilities 0
17. Insurance 0
18. Inventory Purchases 0
19. Vehicle Expenses 0
20. Travel 0
21. Entertainment 0
22. Repairs & Maintenance 0
23. Supplies 0
24. Advertising 0
25. Other (Attach List) 0
26. Total Operating Disbursements 0 0 0 0
REORGANIZATION DISBURSEMENTS
27. Professional Fees 0
28. U.S. Trustee Fees 0
29. Other (Attach List) 0
30. Total Reorganization Expenses 0 0 0 0
31. Total Disbursements 0 0 0 0
32. Net Cash Flow 0 0 0 0
33. Cash - End of Month 0 0 0 0
This form does X does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO HOLDING, INC. SUPPLEMENT TO
ACCRUAL BASIS - 3
CASE NUMBER: 401-40785-BJH-11 MARCH-01
-----------------
KEVCO KEVCO KEVCO KEVCO
DIST LP MFG. LP MGMT HOLDING
------------ ------------ ------------ ------------
1 CASH-BEGINNING OF MONTH 41,529 (55,996) 17,746,282 232
RECEIPTS FROM OPERATIONS
2 CASH SALES 274,302 --
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION 1,120,290 367,383
4 POST PETITION 15,181,617 6,014,122
5 TOTAL OPERATING RECEIPTS 16,576,209 6,381,505 -- --
NON OPERATING RECEIPTS
6 LOANS & ADVANCES --
7 SALE OF ASSETS 286 --
8 OTHER -- -- -- --
SALE EXPENSE REIMBURSEMENT
ADP ADVANCE
MISC.
INTEREST INCOME
9 TOTAL NON OPERATING RECEIPTS 286 -- -- --
10 TOTAL RECEIPTS 16,576,495 6,381,505 -- --
11 CASH AVAILABLE 16,618,024 6,325,509 17,746,282 232
OPERATING DISBURSEMENTS
12 NET PAYROLL 2,105,173 1,038,694 250,403
13 PAYROLL TAXES PAID -- 1,538,108 221
14 SALES, USE & OTHER TAXES PAID 235 1,675 50
15 SECURED/RENTAL/LEASES 327,171 99,127 97,670 500
16 UTILITIES 119,696 124,447 344,565 38
17 INSURANCE 5,770 1,447 1,241,403
18 INVENTORY PURCHASES 3,246,839 2,943,026
19 VEHICLE EXPENSE 55,871 32,906
20 TRAVEL 17,371 11,694 512
21 ENTERTAINMENT 7,156 1,384
22 REPAIRS & MAINTENANCE 9,451 32,333 470
23 SUPPLIES 10,799 58,576
24 ADVERTISING -- --
25 OTHER 394,411 226,566 214,929 179
FREIGHT 357,913 143,548
CONTRACT LABOR 1,602 7,601 63,360
401 K PAYMENTS -- 151,450
PAYROLL TAX ADVANCE ADP
WAGE GARNISHMENTS
MISC. 34,896 75,417 119 179
26 TOTAL OPERATING DISBURSEMENTS 6,299,943 4,571,875 3,688,060 988
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES --
28 US TRUSTEE FEES --
29 OTHER 10,316,598 1,848,876 (12,155,474) (5,766)
LOAN PAYMENTS --
INTERCOMPANY TRANSFERS 10,316,598 1,848,876 (12,155,474) (5,766)
30 TOTAL REORGANIZATION EXPENSE 10,316,598 1,848,876 (12,155,474) (5,766)
31 TOTAL DISBURSEMENTS 16,616,541 6,420,751 (8,467,414) (4,778)
32 NET CASH FLOW (40,046) (39,246) 8,467,414 4,778
------------ ------------ ------------ ------------
33 CASH- END OF MONTH 1,483 (95,242) 26,213,696 5,010
============ ============ ============ ============
KEVCO KEVCO
COMPONENTS INC TOTAL
------------ ------------ ------------
1 CASH-BEGINNING OF MONTH 134 1,000 17,733,181
RECEIPTS FROM OPERATIONS
2 CASH SALES 274,302
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION 1,487,673
4 POST PETITION 21,195,739
5 TOTAL OPERATING RECEIPTS -- -- 22,957,714
NON OPERATING RECEIPTS
6 LOANS & ADVANCES --
7 SALE OF ASSETS 286
8 OTHER 2,700 -- 2,700
SALE EXPENSE REIMBURSEMENT
ADP ADVANCE
MISC. 2,700
INTEREST INCOME
9 TOTAL NON OPERATING RECEIPTS 2,700 -- 2,986
10 TOTAL RECEIPTS 2,700 -- 22,960,700
11 CASH AVAILABLE 2,834 1,000 40,693,881
OPERATING DISBURSEMENTS
12 NET PAYROLL 3,394,270
13 PAYROLL TAXES PAID 221 1,538,550
14 SALES, USE & OTHER TAXES PAID 1,960
15 SECURED/RENTAL/LEASES 500 524,968
16 UTILITIES 38 588,784
17 INSURANCE 1,248,620
18 INVENTORY PURCHASES 6,189,865
19 VEHICLE EXPENSE 88,777
20 TRAVEL 29,577
21 ENTERTAINMENT 8,540
22 REPAIRS & MAINTENANCE 42,254
23 SUPPLIES 69,375
24 ADVERTISING --
25 OTHER 259 -- 836,344
FREIGHT 501,461
CONTRACT LABOR 72,563
401 K PAYMENTS 151,450
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS --
MISC. 259 110,870
26 TOTAL OPERATING DISBURSEMENTS 1,018 -- 14,561,884
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES --
28 US TRUSTEE FEES --
29 OTHER (4,234) -- --
LOAN PAYMENTS --
INTERCOMPANY TRANSFERS (4,234) --
30 TOTAL REORGANIZATION EXPENSE (4,234) -- --
31 TOTAL DISBURSEMENTS (3,216) -- 14,561,884
32 NET CASH FLOW 5,916 -- 8,398,816
------------ ------------ ------------
33 CASH- END OF MONTH 6,050 1,000 26,131,997
============ ============ ============
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CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40785-BJH-11
SCHEDULED MONTH MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT FEB-01 MAR-01 MONTH
- ------------------------- ------------ ------------ ------------ ------------
1. 0 - 30
2. 31 - 60
3. 61 - 90
4. 91 +
5. Total Accounts Receivable 0 0 0 0
6. (Amount Considered Uncollectible)
7. Accounts Receivable (Net) 0 0 0 0
AGING OF POST PETITION MONTH: MARCH-01
TAXES AND PAYABLES -------------------
0 - 30 31 - 60 61 - 90 91 +
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
- ------------- ------------ ------------ ------------ ------------ ------------
1. Federal 0
2. State 0
3. Local 0
4. Other (Attach List) 0 0 0 0 0
5. Total Taxes Payable 0 0 0 0 0
6. Accounts Payable 0
MONTH: MARCH-01
STATUS OF POST PETITION TAXES -------------------
BEGINNING TAX AMOUNT ENDING TAX
FEDERAL LIABILITY * WITHHELD AND/OR (AMOUNT PAID) LIABILITY
- ------- ------------- --------------- ------------- ------------
1. Withholding ** 0
2. FICA - Employee ** 221 (221) 0
3. FICA - Employer ** 0
4. Unemployment 0
5. Income 0
6. Other (Attach List) 0 50 (50) 0
7. Total Federal Taxes 0 271 (271) 0
STATE AND LOCAL
8. Withholding 0
9. Sales 0
10. Excise 0
11. Unemployment 0
12. Real Property 0
13. Personal Property 0
14. Other (Attach List) 0
15. Total State And Local 0 0 0 0
16. Total Taxes 0 271 (271) 0
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt
to verify payment of deposit.
This form does X does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 5
CASE NUMBER: 401-40785-BJH-11
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
MONTH: MARCH-01
-----------------
BANK RECONCILIATIONS Account # 1 Account # 2
- -------------------- ------------ ------------
A. BANK: PNC Bank Delaware Other Accounts
B. ACCOUNT NUMBER: 56-0359-4664 (Attach List) TOTAL
C. PURPOSE (TYPE):
1. Balance Per Bank Statement 5,010 5,010
2. Add: Total Deposits Not Credited 0
3. Subtract: Outstanding Checks 0
4. Other Reconciling Items 0
5. Month End Balance Per Books 5,010 0 5,010
6. Number of Last Check Written 1,022
INVESTMENT ACCOUNTS
DATE OF TYPE OF
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE
- --------------------------- ------------- --------------- -------------- -------------
7.
8.
9.
10. (Attach List)
11. Total Investments 0 0
CASH
12. Currency On Hand 0
13. Total Cash - End of Month 5,010
This form does X does not have related footnotes on Footnotes Supplement.
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10
CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40785-BJH-11
MONTH: MARCH-01
-------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
Of the Total Disbursements shown for the month, list the amount paid to Insiders
(as defined in Section 101 (31) (A) - (F) of the U.S. Bankruptcy Code) and to
Professionals. Also, for payments to Insiders, identify the type of compensation
paid (e.g. salary, bonus, commissions, insurance, housing allowance, travel, car
allowance, etc.). Attach additional sheets if necessary.
INSIDERS
TOTAL
TYPE OF AMOUNT PAID TO
NAME PAYMENT PAID DATE
- ---- ---------- ---------- ----------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To Insiders 0 0
PROFESSIONALS
DATE OF
COURT ORDER TOTAL TOTAL
AUTHORIZING AMOUNT AMOUNT PAID TO INCURRED
NAME PAYMENT APPROVED PAID DATE & UNPAID *
- ---- ----------- ---------- ---------- ---------- ----------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To Professionals 0 0 0 0
* Include all fees incurred, both approved and unapproved
POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
SCHEDULED MONTHLY AMOUNTS PAID TOTAL UNPAID
NAME OF CREDITOR PAYMENTS DUE DURING MONTH POST PETITION
- ---------------- ----------------- ------------ -------------
1.
2.
3.
4.
5. (Attach List)
6. TOTAL 0 0 0
This form does X does not have related footnotes on Footnotes Supplement.
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11
CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40785-BJH-11
MONTH: MARCH-01
-------------------
QUESTIONNAIRE
YES NO
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1. Have any Assets been sold or transferred outside the normal course of
business this reporting period? X
2. Have any funds been disbursed from any account other than a debtor in
possession account? X
3. Are any Post Petition Receivables (accounts, notes, or loans) due from
related parties? X
4. Have any payments been made on Pre Petition Liabilities this reporting
period? X
5. Have any Post Petition Loans been received by the debtor from any party? X
6. Are any Post Petition Payroll Taxes past due? X
7. Are any Post Petition State or Federal Income Taxes past due? X
8. Are any Post Petition Real Estate Taxes past due? X
9. Are any other Post Petition Taxes past due? X
10. Are any amounts owed to Post Petition creditors delinquent? X
11. Have any Pre Petition Taxes been paid during the reporting period? X
12. Are any wage payments past due? X
If the answer to any of the above questions is "Yes", provide a detailed
explanation of each item. Attach additional sheets if necessary.
INSURANCE
YES NO
----- -----
1. Are Worker's Compensation, General Liability and other necessary insurance
coverages in effect? X
2. Are all premium payments paid current? X
3. Please itemize policies below.
If the answer to any of the above questions is "No", or if any policies have
been canceled or not renewed during this reporting period, provide an
explanation below. Attach additional sheets if necessary.
KEVCO HOLDING, INC. HAS NO EMPLOYEES; OPERATES AS A HOLDING COMPANY.
INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY
-------------- ------- -------------- --------------------------
General Liability Liberty Mutual 9/1/00-9/1/01 Annual $313,520
Umbrella National Union 6/1/00-9/1/01 Annual $103,349
This form X does does not have related footnotes on Footnotes Supplement.
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12
CASE NAME: KEVCO HOLDING, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 401-40785-BJH-11 ACCRUAL BASIS
MONTH: MARCH-01
------------------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE / EXPLANATION
------------- ------ ----------------------
1 24 Pursuant to an Asset Purchase Agreement approved by the Court on
February 23, 2001 and effective as of the same date among Kevco,
Inc., Kevco Manufacturing, LP, Wingate Management Co. II, LP and
Adorn LLC, certain assets and liabilities of Design Components, a
division of Kevco Manufacturing, LP (Case No. 401-40784-BJH-11),
were transferred to Adorn, LLC. At the effective date of
purchase, Buyer assumed certain executory contracts,
approximately $1.6 million of Kevco Manufacturing, LP's unsecured
pre-petition liabilities, $3.5 million of accounts receivable, $5
million of inventory and $2.2 million (book value) of property
and equipment. Payment was made directly to Bank of America, the
secured lender, thereby reducing pre-petition secured debt.
1 27A Intercompany payables are to co-debtors Kevco Management Co.
(Case No. 401-40788-BJH-11), Kevco Distribution, LP (Case No.
401-40789-BJH-11), Kevco Manufacturing, LP (Case No.
401-40784-BJH-11), DCM Delaware, Inc. (Case No.
401-40787-BJH-11), Kevco, Inc. (Case No. 401-40783-BJH-11), Kevco
GP, Inc. (Case No. 401-40786-BJH-11), and Kevco Components, Inc.
(Case No. 401-40790-BJH-11).
1 32 The direct charge to equity is due to the secured debt reduction
pursuant to the sale of Design Components (See Footnote 1-24).
The secured debt owed to Bank of America by Kevco, Inc. (Case No.
401-40783-BJH-11) has been guaranteed by all of its co-debtors
(See Footnote 1,27A); therefore, the secured debt is reflected as
a liability on all of the Kevco entities. The charge to equity is
simply an adjustment to the balance sheet. Kevco, Inc.'s report
will reflect the cash portion of the transaction.
3 1 Pursuant to the February 12, 2001 Order (1) Authorizing Continued
Use of Existing Forms and Records; (2) Authorizing Maintenance of
Existing Corporate Bank Accounts and Cash Management System; and
(3) Extending Time to Comply with 11 U.S.C. Section 345
Investment Guidelines, funds in the Bank of America and Key Bank
deposit accounts are swept daily into Kevco's lead account number
1295026976. The Bank of America lead account is administered by,
and held in the name of, Kevco Management Co. (co-debtor, Case
No. 401-40788-BJH-11). Accordingly, all cash receipts and
disbursements flow through Kevco Management's Bank of America DIP
account. A schedule allocating receipts and disbursements among
Kevco, Inc. and its subsidiaries is included in this report as a
Supplement to Accrual Basis -3. Debtor does maintain a small
petty cash account that is included in the cash supplement
schedule.