1
Exhibit 99K
POWERTEL USA, INC.
97-30265
CHAPTER 11
MONTHLY OPERATING REPORT
FEBRUARY 1998
The Debtor in Possession is filing an incomplete Monthly Operating Report due to
the lack of complete records. The former officers of PowerTel, USA. Inc. have
not cooperated with the Debtor by providing the necessary information. The Books
and Records are missing. Therefore, it is impossible for the Debtor to file a
complete Monthly Operating Report.
/s/ Richard Cascarilla
---------------------------------------
RICHARD A. CASCARILLA, PRESIDENT
DEBTOR IN POSSESSION
2
BALANCE SHEET
FEBRUARY 28, 1998
Assets
Current Assets:
Cash $ 69,824.13
---------------
Accounts Receivable $
---------------
Allowance for Doubtful
Accounts $
---------------
Accounts Receivable (Net) $
---------------
Inventory $
---------------
Prepaid Expenses $
---------------
Total Current Assets $ 69,824.13
---------------
Property and Equipment (Fair Market Value)
Real Property $
---------------
Machinery and Equipment $5,700, 000. 00
---------------
Furniture and Fixtures $
---------------
Office Equipment $
---------------
Leasehold Improvements $
---------------
Vehicles $
---------------
Other $
---------------
Total Property and Equipment $ 5,700,000.00
---------------
Investments:
Herth Printing and Business Supply
Stock (at Book Value) $ 384,218.00
---------------
Total Assets: $ 6,154,042.13
---------------
3
LIABILITIES
FEBRUARY 28, 1998
Postpetition Liabilities (Accrued and Unpaid)
Salaries & Wages $
-------------
Payroll Taxes $ 2,536.50
-------------
Sales Taxes $
-------------
Income Taxes $
-------------
Real Property Taxes $
-------------
Personal Property Taxes $
-------------
Accounts Payable $
-------------
Postpetition Real Property
Lease Arrearages $
-------------
Postpetition Equipment
Lease Arrearages $
-------------
Accrued Professional Fees
Other $
-------------
$
-------------
Total Postpetition Liabilities $ 2,536.50
-------------
Prepetition Liabilities
Priority Debt (Schedule A-1) $
-------------
Secured Debt (Schedule A-2) $
-------------
Unsecured Debt (Schedule A-3) $
-------------
Total Prepetition Liabilities $
-------------
Shareholder's Equity
Common Stock $
-------------
Paid-In Capital $6,131,096.00
-------------
Retained Earnings $ 20,409.63
-------------
Total Shareholder's Equity $6,151,505.63
-------------
Total Liabilities & Equity $6,154,042.13
-------------
4
RECAPITULATION
FEBRUARY 28, 1998
Balance from Prior Month
General Account $ 78,051.73
-----------
Bank FIRST OF AMERICA BANK, N.A. MICHIGAN
Branch OKEMOS, MICHIGAN
Account #62-3007936-7
General Account $
-----------
Bank
Branch
Account #
Tax Account $
-----------
Bank
Branch
Account #
Balance to Carry Forward to Next Month
General Account $
General Account $ 69,824.13
-----------
Tax Account $
-----------
5
POWERTEL USA, INC.
EAST LANSING, MICHIGAN
BANK ACCOUNT SUYIWIES
#97-30265
(PRELBANK.298)
FEBRUARY, 1998
FIRST OF
DATE DESCRIPTION AMERICA
- -------- ---------------------------- ----------
02.01.98 BEGINNING BALANCE $78,051.73
----------
02.28.98 TOTAL DEPOSITS $ 0.00
----------
02.28.98 CHECKS WRITTEN PER ATTACHED $ 8,227.60
----------
02.28.98 TOTAL DISBURSEMENTS $ 8,227.60
02.28.98 BALANCE $69,854.13
==========
6
RUN DATE: 03/11/98 POWERTEL USA, INC. PAGE: 1
SYS DATE: 02/28/98 TRANSACTION JOURNAL TIME: 04:59 PM
SOURCE POSTING CREDIT
JOURNAL DATE ACCOUNT NO BATCH TOTAL JOURNAL COMMENT
CD-0001 02/28/98 1020-000-00 8,227.60 DISBURSEMENTS
CHECK NO DATE COMMENT DEBIT ACCT TRANS AMOUNT
- -------- -------- --------------- ----------- ---------------
0001067 02/02/98 CASEY & BOOG PLC 6600-000-00 95.00
0001068 02/02/98 CASEY & BOOG 6500-000-00 5.90
0001069 02/03/98 AMERITECH 7800-000-00 18.90
0001070 02/06/98 U.P.S. 6000-000-00 13.50
0001071 02/17/98 CASEY & BOOG 6600-000-00 95.00
0001072 02/17/98 FIRST OF AMERICA 2110-001-00 474.30
0001072 02/17/98 FIRST OF AMERICA 2110-002-00 810.00
0001072 02/17/98 FIRST OF AMERICA 2110-005-00 474.30
--------
CHECK 0001072 TOTALS: 1,758.60
--------
0001073 02/23/98 CORPORATE SERVICES 7800-000-00 58.31
0001074 02/24/98 FLEET 7900-000-00 803.19
0001075 02/25/98 RICHARD CASCARILLA 8100-000-00 3,723.00
0001076 02/28/98 CASEY & BOOG 6600-000-00 95.00
0001077 02/28/98 U.P.S. 6000-000-00 24.00
0001078 02/28/98 H. LAWRENCE HEATH 8100-000-00 991.20
0001079 02/28/98 MICHAEL KASSOUFF 7900-000-00 369.00
0001080 02/28/98 JOHN VOGEL 7900-000-00 177.00
--------
JOURNAL CD-0001 TOTALS: 8,227.60
--------
SOURCE CD TOTALS: 8,227.60
--------
REPORT TOTALS: 8,227.60
========
7
CASH FLOW STATEMENT
FEBRUARY 28, 1998
Projected
Current For current
Month Month
---------- -----------
Receipts:
Sales (Cash Only) $ $
---------- -----------
Collections of Accounts Receivable $ $
---------- -----------
Other Income $ $
---------- -----------
Total Receipts $ $
---------- -----------
Disbursements:
Purchases and Inventory $ $
---------- -----------
Salaries and Wages $ 4,714.20 $
---------- -----------
Employee Benefits $ $
---------- -----------
Shipping & Freight $ 37.50 $
---------- -----------
Rent $ $
---------- -----------
Secured Debt Payments $ $
---------- -----------
Outside Services $ 285.00 $
---------- -----------
Telephone $ 77,21 $
---------- -----------
Repairs & Maintenance $ $
---------- -----------
Miscellaneous Office Expense $ 5.90 $
---------- -----------
Advertising $ $
---------- -----------
Travel & Entertainment $ 1,349.19 $
---------- -----------
Professional Fees $ $
---------- -----------
Court Costs $ $
---------- -----------
Insurance:Liability $ $
---------- -----------
Property $ $
---------- -----------
Vehicle $ $
---------- -----------
Worker's Compensation $ $
---------- -----------
Other $ $
---------- -----------
Taxes: Payroll $ 1,758.60 $
---------- -----------
Sales $ $
---------- -----------
Income $ $
---------- -----------
Real Property $ $
---------- -----------
Personal Property $ $
---------- -----------
Total Disbursements $ $
---------- -----------
Cash Flow $(8,227.60) $
---------- -----------
8
INCOME STATEMENT
(Accrual Basis)
OCTOBER 1, 1997 TO FEBRUARY 28, 1998
Current Year to
Month Date
Income $ $
------------ -----------
Cost of Goods Sold
Beginning Inventory $ $
------------ -----------
Inventory Purchases $ $
------------ -----------
Ending inventory $ $
------------ -----------
Total Costs of Goods Sold $ $
------------ -----------
Operating Expenses
Salaries and Wages $ 6,200.00 $ 36,000.00
------------ -----------
Employee Benefits $ $
------------ -----------
Shipping & Freight $ 37.50 $ 1,142.82
------------ -----------
Rent $ $
------------ -----------
Secured Debt Payments $ $
------------ -----------
Outside Services $ 285.00 $ 2,094.93
------------ -----------
Telephone $ 77.21 $ 474.56
------------ -----------
Repairs & Maintenance $ $
------------ -----------
Miscellaneous Office Expense $ 5.90 $ 1,443.68
------------ -----------
Advertising $ $
------------ -----------
Travel & Entertainment $ 1,349.19 $ 7,713.58
------------ -----------
Professional Fees $ $ 28,557.15
------------ -----------
Court Costs $ $ 16,872.00
------------ -----------
Insurance:Liability $ $
------------ -----------
Property $ $
------------ -----------
Vehicle $ $
------------ -----------
Worker's Compensation $ $
------------ -----------
Other - Bond $ $ (920.00)
------------ -----------
Taxes: Payroll $ 643.00 $ 3,475.20
------------ -----------
Sales $ $
------------ -----------
Income $ $
------------ -----------
Real Property $ $
------------ -----------
Personal Property $ $
------------ -----------
Total Operating Expenses $ 8,597.80 $ 96,853.92
------------ -----------
Total Profit (Loss) from Operations $ (8,597.80) $(96,853.92)
------------ -----------
Other Income (Expense) $ $
------------ -----------
Gain (Loss) on Sale of Assets $ $
------------ -----------
Interest Expense $ $
------------ -----------
Interest Income $ $
------------ -----------
Dividend income $ $ 16.34
------------ -----------
Herth Printing Income (loss) $ (33,141.00) $(46,878.00)
------------ -----------
Total $ (33,141.00) $(46,861.66)
------------ -----------
Total Profit (Loss) for Month $ (41,738.80) $(143,715.58)
------------ -----------
9
Monthly Questionnaire
I. Accounts Payable and Receivable Aging:
Attach an Accounts Payable and Receivable Aging Schedule, identifying in
chronological (or reverse chronological) order every debt which came due
after the commencement of the bankruptcy case but has not been paid, and
specifying the creditor by name and address, the nature of the debt (e.g.,
rent, advertising, wages, etc.), the amount owed and the date on which the
obligation come due. Provide summary information below for both accounts
payable and accounts receivable:
Accounts Payable Accounts Receivable
---------------- -------------------
Less Than 31 Days Past Due
31 to 60 Days Past Due
61 to 90 Days Past Due
91 to 120 Days Past Due
Over 120 Days Past Due
II. Payments to Secured Creditors and Lessors:
Identify every secured Creditor and lessor by name and address, and provide
the requested information. Where there is a postpetition stipulation or
court order governing the creditor's treatment, respond on the basis of that
stipulation or order; otherwise, respond on the basis of the prepetition
contract or lease.
Creditor Name and Address Payment Periodic Date of Post Petitions Payments
Period Payment Last Made Missed
(mo/wk) Amount Payment -------------------------------------
No. Amount No. Amount
- ------------------------- ------ -------- ------- --- ------ --- ------
10
MONTHLY QUESTIONNAIRE
Page 2
III. Tax Liability
Gross Payroll Expense for Report Month: $6,200.00
---------
Gross Sales Subject to Sales Tax for Report Month $ 0.00
---------
Date Paid Amount Paid Due But Not Paid Accrued But Not Due
--------- ----------- ---------------- -------------------
Federal Payroll & Withholding 1,833.80
State Payroll & Withholding 702.70
State Sales & Use
IV. Insurance Coverage
Carrier/Agent Name Amount of Policy Expiration Policy Paid
Coverage Date Through Date
------------------ --------- ----------------- ------------
Worker's Compensation
Liability
Fire & Extended Coverage
Property
Theft
Vehicle
Life (Beneficiary):
Other (specify):
V. Postpetition Payments
A. Has the Debtor made any payments outside of the ordinary course of
business to any officers, shareholders, directors, other principals or
insider-employees or to professionals without specific authorization under a
Bankruptcy Court order? /NO/
If the answer is yes, identify each person paid, the date and amount of such
payment(s) and the basis for each such payment.
B. Has the Debtor, following the commencement of the bankruptcy case, made
any payments on account of prepetition unsecured debts, except as
specifically authorized by the Bankruptcy Court? /NO/
If the answer is yes, identify each person paid, the date and amount of such
payment(s) and the basis for each such payment.
11
MONTHLY QUESTIONNAIRE
Page 3
VI. Narrative
Provide a brief narrative report of any significant events outside of the
ordinary course of business which occurred during the Report Month:
VII. U.S. Trustee Fees
Quarter Total Quarterly Fee Amount Paid Date Paid Total Quarterly
Ending Disbursement Fees Due But
During Quarter Not Paid
- ------- -------------- ------------- ----------- --------- ---------------
I declare under penalty of perjury that I have reviewed the income
statement, cash flow statement, projections, balance sheet and monthly
questionnaire attached hereto and, after making reasonable inquiry, believe that
these documents are accurate and correct.
DATED this 19th day of February, 1998.
By: /s/ Richard Cascarilla
----------------------