1
Exhibit 10u
POWERTEL USA, INC.
97-30265
CHAPTER 11
MONTHLY OPERATING REPORT
DECEMBER 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 A. Cascarilla
-----------------------------------------
RICHARD A. CASCARILLA, PRESIDENT
DEBTOR IN POSSESSION
2
BALANCE SHEET
December 31, 1998
Assets
Current Assets:
Cash $ 14,901.03
-----------------
Accounts Receivable $
-----------------
Allowance for Doubtful
Accounts $
-----------------
Accounts Receivable (Net) $
-----------------
Inventory $
-----------------
Prepaid Expenses $
-----------------
Total Current Assets $ 14,901.03
-----------------
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) $ 379,760.00
-----------------
Total Assets: $ 6,094,661.03
-----------------
3
Liabilities
December 31, 1998
Postpetition Liabilities (Accrued and Unpaid)
Salaries & Wages $
----------------
Payroll Taxes $ 8,347.85
----------------
Sales Taxes $
----------------
Income Taxes $
----------------
Real Property Taxes $
----------------
Personal Property Taxes $
----------------
Accounts Payable $
----------------
Postpetition Real Property
Lease Arrearages $
Postpetition Equipment
Lease Arrearages $
----------------
Accrued Professional Fees $ 209,557.74
----------------
Other: Loan Pay-Shareholder $ 4.000.00
----------------
DiegoTel, Inc. Stock-Book Value $ 14,500.00
----------------
Total Postpetition Liabilities $ 236,405.59
----------------
Prepetition Liabilities
Priority Debt (Schedule A-1) $
----------------
Secured Debt (Schedule A-2) $
----------------
Unsecured Debt (Schedule A-3) $ 647,000.00
----------------
Total Prepetition Liabilities $ 647,000.00
----------------
Shareholder's Equity
Common Stock $
----------------
Paid-In Capital $ 6,131,096.00
----------------
Retained Earnings $ (919,840.56)
----------------
Total Shareholder's Equity $ 5,211,255.44
----------------
Total Liabilities & Equity $ 6,094,661.03
----------------
4
INCOME STATEMENT
(Accrual Basis)
OCTOBER 1, 1997 TO DECEMBER 31, 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 $ 25,500.00 $ 98,700.00
----------- -----------
Employee Benefits $ 529.84 $ 2,119.54
----------- -----------
Shipping & Freight $ 150.00 $ 1,884.02
----------- -----------
Rent $ 500.00 $ 2,000.00
----------- -----------
Secured Debt Payments $ $
----------- -----------
Utilities $ 8,940.00 $ 16,935.74
----------- -----------
Telephone $ 146.32 $ 1,719.44
----------- -----------
Lawsuit Settlement $ 10,000.00 $ 10,000.00
----------- -----------
Misc $ 164.78 $ 2,943.19
----------- -----------
Advertising $ 320.00 $ 320.00
----------- -----------
Travel & Entertainment $ 335.77 $ 23,280.36
----------- -----------
Professional Fees $255,691.04 $309,813.91
----------- -----------
Court Costs $ $ 19,372.00
----------- -----------
Insurance: Liability $ $
----------- -----------
Property $ $ 407.70
----------- -----------
Vehicle $ $
----------- -----------
Worker's Compensation $ $
----------- -----------
Other: Bond $ $ (920.00)
----------- -----------
Taxes: Payroll $ 2,108.25 $ 9,070.21
----------- -----------
Sales $ $
----------- -----------
Income $ $
----------- -----------
Real Property $ $
----------- -----------
Personal Property $ $
----------- -----------
Total Operating Expenses $304,386.00 $497,646.11
----------- -----------
Total Profit (Loss) from Operations $(304,386.00) $(497,646.11)
----------- -----------
Other Income (Expense) $ $
----------- -----------
Gain (Loss) on Sale of Assets $ $
----------- -----------
Interest Expense $ $
----------- -----------
Interest Income $ $
----------- -----------
Dividend Income $ $ 16.34
----------- -----------
Herth Printing Income (loss) $ 1,525.00 $(33,336.00)
----------- -----------
Total $ 1,525.00 $(33,319.66)
----------- -----------
Total Profit (Loss) for Month $(302,861.00) $(530,965.77)
----------- -----------
5
Recapitulation
DECEMBER 1998
Balance from Prior Month
General Account $ 2,439.04
--------------
Bank FIRST OF AMERICA BANK, N.A. MICHIGAN
Branch OKEMOS, MICHIGAN
Account # 62-30079367
General Account $
--------------
Bank
Branch
Account #
Tax Account $
--------------
Bank
Branch
Account #
Balance to Carry Forward to Next Month
General Account $ 14,901.03
--------------
General Account $
--------------
Tax Account $
--------------
6
POWERTEL USA, INC.
EAST LANSING, MICHIGAN
BANK ACCOUNT SUMMARIES
#97-31265
DECEMBER, 1998
FIRST OF
DATE DESCRIPTION AMERICA
-------------- -------------------------------------------------------
12.01.98 BEGINNING BALANCE $ 2,439.04
12.31.98 TOTAL DEPOSITS 99,000.00
12.31.98 CHECKS WRITTEN PER ATTACHED 86,538.01
----------------
12.31.98 BALANCE $14,901.03
----------------
7
RUN DATE: 1/19/99 POWERTEL USA, INC. PAGE: 1
SYS DATE: 12/31/98 TRANSACTION JOURNAL TIME: 09:02 AM
SOURCE POSTING CREDIT
JOURNAL DATE ACCOUNT NO BATCH TOTAL JOURNAL COMMENT
CD-0001 12/31/98 1020-000-00 86,538.01 DISBURSEMENTS
CHECK NO DATE COMMENT DEBIT ACCT TRANS AMOUNT
--------- -------- ------------------------ ----------- -------------
0001254 12/01/98 WALTER & HAVERFIELD 6200-000-00 30,000.00
0001255 12/02/98 ROBERT L. LINDBERG CPA 5050-000-00 188.30
0001256 12/02/98 AMERITECH 7800-000-00 18.98
0001257 12/02/98 MICHAEL KASSOUF 8100-000-00 3,681.00
0001258 12/02/98 RICHARD A. CASCARILLA 8100-000-00 15,637.00
0001259 12/03/98 CABO 6900-000-00 500.00
0001260 12/03/98 CASEY & BOOG 6600-000-00 95.00
0001261 12/03/98 JOHN VOGEL & DEAN C 2001-000-00 10,000.00
0001262 12/03/98 STEVEN HARRIS 6200-000-00 15,000.00
0001263 12/07/98 KAFNEY ACCOUNTING 5050-000-00 785.00
0001264 12/08/98 CASEY & BOOG 6600-000-00 150.00
0001265 12/07/98 UPS 6000-000-00 12.00
0001266 12/09/98 CASEY & BOOG 6500-000-00 25.78
0001267 12/11/98 CASEY & BOOG 6600-000-00 150.00
0001268 12/14/98 CORPORATE STOCK TRANSFER 7900-000-00 140.77
0001269 12/14/98 UPS 6000-000-00 36.00
0001270 12/15/98 HARTMAN & ARMSTRONG 6200-000-00 160.00
0001271 12/16/98 CASEY & BOOG 6600-000-00 95.00
0001272 12/16/98 CASEY & BOOG 6600-000-00 150.00
0001273 12/17/98 PR NEWSWIRE 5100-000-00 320.00
0001274 12/21/98 PAUL GOEBEL GROUP 6150-000-00 529.84
0001275 12/24/98 ENOS CHRISTIE 6600-000-00 500.00
0001276 12/24/98 JEFFREY HARTMAN 5750-000-00 2,500.00
0001277 12/24/98 MICHAEL KASSOUF 5750-000-00 2,500.00
0001278 12/24/98 RICHARD CASCARILLA 5750-000-00 2,500.00
0001279 12/24/98 UPS 6000-000-00 12.00
0001280 12/24/98 CASEY & BOOG 6600-000-00 150.00
0001281 12/25/98 UPS 6000-000-00 90.00
0001282 12/25/98 CUSIP 5900-000-00 139.00
0001283 12/28/98 CORPORATE SERVICES 7800-000-00 106.38
0001284 12/28/98 AMERITECH 7800-000-00 20.96
0001285 12/30/98 CASEY & BOOG 6600-000-00 150.00
0001286 12/30/98 KNUTSON TRAVEL PORT 7900-000-00 195.00
------------
JOURNAL CD-0001 TOTALS: 86,538.01
-------------
SOURCE CD TOTALS: 86,538.01
-------------
REPORT TOTALS: 86,538.01
=============
8
CASH FLOW STATEMENT
DECEMBER 1998
Projected
Reported For Current
Month Month
Receipts:
Sales (Cash Only) $ $
----------- ----------
Collections of Accounts Receivable $94,000.00 $
Sales (Cash Only)
----------- ----------
Other Income HERTH PRINTING, INC.-DIVIDEND $ 5,000.00 $
Sales (Cash Only)
----------- ----------
Total Receipts $99,000.00 $
Sales (Cash Only)
----------- ----------
Disbursements:
Purchases and Inventory $ $
----------- ----------
Salaries and Wages $19,318.00 $
----------- ----------
Employee Benefits $ 529.84 $
----------- ----------
Shipping & Freight $ 150.00 $
----------- ----------
Rent $ 500.00 $
----------- ----------
Secured Debt Payments $ $
----------- ----------
Utilities $ 8,940.00 $
----------- ----------
Telephone $ 146.32 $
----------- ----------
Repairs & Maintenance $ $
----------- ----------
Misc. Office Expense $ 164.78 $
----------- ----------
Advertising $ 320.00 $
----------- ----------
Travel & Entertainment $ 335.77 $
----------- ----------
Professional Fees $56,133.30 $
----------- ----------
Court Costs $ $
----------- ----------
Insurance: Liability $ $
----------- ----------
Property $ $
----------- ----------
Vehicle $ $
----------- ----------
Worker's Compensation $ $
----------- ----------
Other $ $
--------------- ----------- ----------
Taxes: Payroll $ $
----------- ----------
Sales $ $
----------- ----------
Income $ $
----------- ----------
Real Property $ $
----------- ----------
Personal Property $ $
----------- ----------
Total Disbursements $86,538.01 $
----------- ----------
Cash Flow $12,461.09 $
----------- ----------
9
POWERTEL USA, INC.
EAST LANSING MICHIGAN
ACCOUNTS PAYABLE
#97-31265
DECEMBER, 1998
WALTER & HAVERFIELD $158,485.12
CLEVELAND, OHIO
LEGAL FEES
BELDING & HARRIS 51,072.62
RENO, NV
LEGAL FEES
-----------
$209,557.74
===========
10
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 came due. Provide summary information
below for both accounts payable and accounts receivable:
- --------------------------------------------------------------------------------
Accounts Payable Accounts Receivable
- --------------------------------------------------------------------------------
Less Than 31 Days Past Due 209,557.74
- --------------------------------------------------------------------------------
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 Period Periodic Date of Post Petition Payments
(mo/wk) Payment Last Made Missed
Amount Payment No. Amount No. Amount
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
11
MONTHLY QUESTIONNAIRE
Page 2
III. Tax Liability
Gross Payroll Expense for Report Month: $25,550.00
----------
Gross Sales Subject to Sales Tax for Report Month: $ -0-
----------
Postpetition Taxes
- -----------------------------------------------------------------------------------------------------------
Date Paid Amount Paid Due But Not Paid Accrued But Not Due
- -----------------------------------------------------------------------------------------------------------
Federal Payroll & Withholding 7,328.75
- -----------------------------------------------------------------------------------------------------------
State Payroll & Withholding 1,019.10
- -----------------------------------------------------------------------------------------------------------
State Sales & Use
- -----------------------------------------------------------------------------------------------------------
IV. INSURANCE COVERAGE
- -------------------------------------------------------------------------------------------------
Carrier/Agent Amount of Policy Expiration Policy Paid
Name 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.
12
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 Ending Total Quarterly Fee Amount Paid Date Paid Total Quarterly
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 20th day of January , 1999.
By: /s/ Richard Cascarilla
----------------------