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
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FORT WORTH DIVISION
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MONTHLY OPERATING REPORT
MONTH ENDING: APRIL 30, 2001
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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 MAY 29, 2001
- --------------------------------------- -------------------------------
Printed Name of Responsible Party Date
PREPARER:
/s/ DENNIS S. FAULKNER ACCOUNTANT FOR DEBTOR
- --------------------------------------- -------------------------------
Original Signature of Preparer Title
DENNIS S. FAULKNER MAY 29, 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 MONTH
ASSETS AMOUNT FEB-01 MAR-01 APR-01
- ------ --------- ------ ------ ------
1. Unrestricted Cash 232 232 5,010 5,010
2. Restricted Cash
3. Total Cash 232 232 5,010 5,010
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 5,010
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 86,217,619
15. Other (Attach List) 14,496,631 14,496,631 14,496,631 14,496,631
16. Total Assets 109,853,663 101,150,602 100,937,320 100,719,260
POST PETITION LIABILITIES
17. Accounts Payable
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 41,900,067
25. Priority Debt
26. Unsecured Debt
27. Other (Attach List) 328,039,345 320,345,497 321,192,806 321,192,806
28. Total Pre Petition Liabilities 403,924,409 383,458,885 384,306,194 363,092,873
29. Total Liabilities 403,924,409 383,458,885 384,306,194 363,092,873
EQUITY
30. Pre Petition Owners' Equity (294,070,746) (294,070,746) (294,070,746)
31. Post Petition Cumulative Profit Or (Loss) (1,009,211) (2,069,802) (2,287,862)
32. Direct Charges To Equity (FOOTNOTE) 12,771,674 12,771,674 33,984,995
33. Total Equity (282,308,283) (283,368,875) (262,373,613)
34. Total Liabilities and Equity 101,150,602 100,937,320 100,719,260
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 MONTH
ASSETS AMOUNT FEB-01 MAR-01 APR-01
- ------ --------- ------ ------ ------
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 6,052,990
B. Goodwill: Bowen 13,569,437 13,537,854 13,506,272 13,474,689
C. Goodwill: BTE 1,657,846 1,653,625 1,649,404 1,645,184
D. Goodwill: Shelter 74,032,237 65,379,744 65,212,250 65,044,756
E.
TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 95,356,800 86,653,739 86,435,679 86,217,619
A. Investment in Subsidiaries 14,496,631 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 14,496,631
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) 199,539,345 191,845,497 192,692,806 192,692,806
B. 10 3/8% Senior Sub. Notes 105,000,000 105,000,000 105,000,000 105,000,000
C. Sr. Sub. Exchangeable Notes 23,500,000 23,500,000 23,500,000 23,500,000
D.
E.
TOTAL OTHER PRE PETITION LIABILITIES - LINE 27 328,039,345 320,345,497 321,192,806 321,192,806
4
CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 2
CASE NUMBER: 401-40785-BJH-11
INCOME STATEMENT
MONTH MONTH MONTH QUARTER
REVENUES FEB-01 MAR-01 APR-01 TOTAL
- -------- ------ ------ ------ -------
1. Gross Revenues 0
2. Less: Returns & Discounts 0
3. Net Revenue 0 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 0
8. Gross Profit 0 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 0 2,882
15. Income Before Non-Operating
Income & Expense 0 (2,882) 0 (2,882)
OTHER INCOME & EXPENSES
16. Non-Operating Income (Att List) 843,229 375,456 0 1,218,685
17. Non-Operating Expense (Att List) (2,425,531) (1,215,104) 0 (3,640,635)
18. Interest Expense 0
19. Depreciation / Depletion 0
20. Amortization (218,060) (218,060) (218,060) (654,180)
21. Other (Attach List) 791,150 0 0 791,150
22. Net Other Income & Expenses (1,009,212) (1,057,708) (218,060) (2,284,980)
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) (1,060,590) (218,060) (2,287,862)
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 MONTH QUARTER
OPERATING EXPENSES FEB-01 MAR-01 APR-01 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) (1,215,104) (3,640,635)
B. 0
C. 0
D. 0
E. 0
TOTAL NON-OPERATING
EXPENSE - LINE 17 (2,425,531) (1,215,104) 0 (3,640,635)
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 x does does not have related footnotes on Footnotes Supplement.
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CASE NAME: KEVCO HOLDING, INC. SUPPLEMENT TO ACCRUAL BASIS - 3
APRIL, 2001
CASE NUMBER: 401-40785-BJH-11 CASH RECEIPTS AND DISBURSEMENTS
DIST LP MFG MGMT HOLDING COMP KEVCO INC TOTAL
------- --- ---- ------- ---- --------- -----
1 CASH-BEGINNING OF MONTH 1,483 (95,242) 26,213,696 5,010 6,050 1,000 26,131,997
RECEIPTS FROM OPERATIONS
2 CASH SALES 121,372 -- 121,372
COLLECTION OF ACCOUNTS RECEIVABLE
3 PRE PETITION 61,354 -- 61,354
4 POST PETITION 7,225,297 4,705,194 11,930,491
5 TOTAL OPERATING RECEIPTS 7,408,023 4,705,194 -- -- -- -- 12,113,217
NON OPERATING RECEIPTS
6 LOANS & ADVANCES -- --
7 SALE OF ASSETS 38,500 7,012,936 7,051,436
8 OTHER 171,186 -- 87,708 -- -- -- 258,894
INTERCOMPANY TRANSFERS (4,591,461) (2,381,789) 6,973,250 -- -- --
SALE EXPENSE REIMBURSEMENT
LIFE INSURANCE CASH VALUE 152,493
RENT 16,000
TAX REFUND 2,693
MISC. --
INTEREST INCOME 87,708
9 TOTAL NON OPERATING RECEIPTS (4,381,775) 4,631,147 7,060,958 -- -- -- 7,310,330
10 TOTAL RECEIPTS 3,026,248 9,336,341 7,060,958 -- -- -- 19,423,547
11 CASH AVAILABLE 3,027,731 9,241,099 33,274,654 5,010 6,050 1,000 45,555,544
OPERATING DISBURSEMENTS
12 NET PAYROLL 500,771 560,149 112,437 1,173,357
13 PAYROLL TAXES PAID -- 524,486 524,486
14 SALES, USE & OTHER TAXES PAID 9,429 770 10,199
15 SECURED/RENTAL/LEASES 496,959 130,335 71,718 699,012
16 UTILITIES 100,185 88,360 211,235 399,780
17 INSURANCE 6,099 -- 597,388 603,487
18 INVENTORY PURCHASES 1,269,266 1,178,079 2,447,345
19 VEHICLE EXPENSE 64,627 10,109 74,736
20 TRAVEL 21,689 12,853 643 35,185
21 ENTERTAINMENT -- 369 369
22 REPAIRS & MAINTENANCE 2,617 19,292 2,790 24,699
23 SUPPLIES 9,375 40,685 50,060
24 ADVERTISING -- -- --
25 OTHER 546,714 7,266,715 15,367,241 -- -- -- 23,180,670
LOAN PAYMENTS 324,609 7,012,936 15,000,000 22,337,545
FREIGHT 97,953 152,540 250,493
CONTRACT LABOR 617 1,976 31,937 34,530
401 K PAYMENTS -- 157,719 157,719
PAYROLL TAX ADVANCE ADP --
WAGE GARNISHMENTS --
MISC. 123,535 99,263 177,585 400,383
26 TOTAL OPERATING DISBURSEMENTS 3,027,731 9,307,716 16,887,938 -- -- -- 29,223,385
REORGANIZATION DISBURSEMENTS
27 PROFESSIONAL FEES -- 492,647 492,647
28 US TRUSTEE FEES -- --
29 OTHER --
30 TOTAL REORGANIZATION EXPENSE -- -- 492,647 -- -- -- 492,647
31 TOTAL DISBURSEMENTS 3,027,731 9,307,716 17,380,585 -- -- -- 29,716,032
32 NET CASH FLOW (1,483) 28,625 (10,319,627) -- -- -- (10,292,485)
33 CASH-END OF MONTH -- (66,617) 15,894,069 5,010 6,050 1,000 15,839,512
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CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 4
CASE NUMBER: 401-40785-BJH-11
SCHEDULED MONTH MONTH MONTH
ACCOUNTS RECEIVABLE AGING AMOUNT FEB-01 MAR-01 APR-01
- ------------------------- --------- ------ ------ ------
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: APRIL-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: APRIL-01
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STATUS OF POST PETITION TAXES
BEGINNING TAX AMOUNT WITHHELD ENDING TAX
FEDERAL LIABILITY* AND/OR ACCRUED (AMOUNT/PAID) LIABILITY
- ------- ------------- --------------- ------------- ----------
1. Withholding ** 0
2. FICA - Employee ** 0
3. FICA - Employer ** 0
4. Unemployment 0
5. Income 0
6. Other (Attach List) 0 0
7. Total Federal Taxes 0 0 0 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 0 0 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: APRIL-01
----------------
BANK RECONCILIATIONS Account # 1 Account # 2
- -------------------- ----------- -----------
A. BANK: PNC Bank Delaware Other Accounts
B. ACCOUNT NUMBER: 56-0359-4656 (Attach List) TOTAL
C. PURPOSE (TYPE): DIP Account
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 N/A
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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CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 6
CASE NUMBER: 401-40785-BJH-11
MONTH: APRIL-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
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
---- ------- ------ ---------
1.
2.
3.
4.
5. (Attach List)
6. Total Payments To Insiders 0 0
PROFESSIONALS
DATE OF
COURT ORDER TOTAL
AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO 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 AMOUNTS TOTAL
MONTHLY PAID UNPAID
PAYMENTS DURING POST
NAME OF CREDITOR DUE MONTH 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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CASE NAME: KEVCO HOLDING, INC. ACCRUAL BASIS - 7
CASE NUMBER: 401-40785-BJH-11
MONTH: APRIL-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.
(SEE FOOTNOTE 1, 24 [B] AND [C])
INSURANCE
YES NO
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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
PAYMENT AMOUNT
TYPE OF POLICY CARRIER PERIOD COVERED & 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: APRIL-01
----------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE / EXPLANATION
- ------------- ------ ----------------------
1 24 (A) Pursuant to an Asset Purchase Agreement approved by the
7 4 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.
(B) Pursuant to an Asset Purchase Agreement approved by the
Court on April 3, 2001 and effective as of the same date,
Universal Forest Products Eastern Division, Inc. purchased
the assets (inventory, equipment, machinery and five of the
seven facilities at which Sunbelt Wood Components Division
operates) of the Sunbelt division of Kevco Manufacturing,
L.P. Approximately $7 million in sales proceeds were paid
directly to Bank of America thereby reducing pre-petition
secured debt.
(C) Debtor paid $15 million from available cash during April to
Bank of America to reduce 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), Kevco Holding,
Inc. (Case No. 401-40785-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 charges to equity are due to the secured debt reductions
pursuant to sales of two of Kevco Manufacturing, L.P.'s operating
divisions (Design Components and Sunbelt Wood) as well as a direct cash
payment of $15 million (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 a 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). 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 maintains a petty cash account that is included
in the cash supplement schedule.