UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
- --------------------------------------------------------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 27, 2001
---------------------
MATLACK SYSTEMS, INC.
(Debtor-In-Possession as of March 29, 2001)
(Exact name of registrant as specified in its charter)
Delaware 1-10105 51-0310173
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of (Commission (I.R.S. Employer
Incorporation or Organization) File Number) Identification Number)
One Rollins Plaza, Wilmington, Delaware 19803
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (302) 426-2700
-----------------
N/A
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
Matlack Systems, Inc., a Delaware corporation (the "Company"), is filing
herewith the Monthly Operating Report for the period from September 1, 2001 to
September 30, 2001, which the Company has filed with the United States
Bankruptcy Court for the District of Delaware, in connection with the ongoing
proceeding under Chapter 11 of the United States Bankruptcy Code involving the
Company and all of its wholly owned subsidiaries, Case No. 01-1114 (MFW).
Item 7. Financial Statements, Pro Forma Financial Information, and Exhibits.
(c) Exhibits:
99(f)Monthly Operating Report for the period from September 1, 2001 to
September 30, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MATLACK SYSTEMS, INC.
Dated: November 29, 2001 By:
-------------------------------------
Patrick J. Bagley
Vice President-Finance & Treasurer
EXHIBIT INDEX
Exhibit No. Description
99(f) Monthly Operating Report for the period from September 1, 2001
to September 30, 2001.
Exhibit 99(f)
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: September 1, 2001 to September 30, 2001
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days
after end of month
Document Explanation
REQUIRED DOCUMENTS Form No. Attached Attached
- -----------------------------------------------------------------------------------------------------------------------
Schedule of Cash Receipts and Disbursements MOR-1 Yes
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (CON'T) Yes Note 1
Copies of bank statements No
Cash disbursements journals No
Statement of Operations MOR-2 Yes
Balance Sheet MOR-3 Yes
Status of Postpetition Taxes MOR-4 Yes
Copies of IRS Form 6123 or payment receipt No N/A
Copies of tax returns filed during reporting period No Note 2
Summary of Unpaid Postpetition Debts MOR-4 Yes
Listing of aged accounts payable No Note 3
Accounts Receivable Reconciliation and Aging MOR-5 Yes
Debtor Questionnaire MOR-5 Yes
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report
and the attached documents are true and correct to the best of my knowledge and
belief.
--------------------------------------- ----------------------
Signature of Debtor Date
--------------------------------------- ----------------------
Signature of Joint Debtor Date
November 21, 2001
--------------------------------------- ----------------------
Signature of Authorized Individual* Date
Stephen E. Judge Vice President Admin / Controller
--------------------------------------- ----------------------------------
Printed Name of Authorized Individual Title of Authorized Individual
Note 1: Detailed bank reconciliations available upon request.
Note 2: Tax returns relating to the Post-Petition available upon request.
Note 3: Aged accounts receivable listing available upon request.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: September 1, 2001 to September 30, 2001
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
Amounts reported should be per the debtor's books, not the bank statement. The
beginning cash should be the ending cash from the prior month or, if this is the
first report, the amount should be the balance on the date the petition was
filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal
the sum of the four bank account columns. The amounts reported in the
"PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM
IR-1). Attach copies of the bank statements and the cash disbursements journal.
The total disbursements listed in the disbursements journal must equal the total
disbursements reported on this page. A bank reconciliation must be attached for
each account. [See MOR-1 (CON'T)]
BANK ACCOUNTS For the Current Period
From Aug. 1, 2001 to Aug.31, 2001 Cumulative Since Filing
OPERATING PAYROLL & TAX Actual Projected Actual Projected
- ----------------------------------------------------------------------------------------------------------------------------------
(Note 1)
Cash Receipts
Collection of Accounts $ 3,456,517 $ 3,456,517 $ 3,875,000 $ 55,134,671 $ 55,553,000
Receivable
Other 513,546 513,546 512,000 1,525,979 1,355,000
-------------- ------------- -------------- --------------- ------------- ------------
Total Cash Receipts 3,970,063 0 3,970,063 4,387,000 56,660,650 56,908,000
-------------- ------------- -------------- --------------- ------------- ------------
- -
Cash Disbursements
Total Payroll 107,616 429,155 536,771 522,000 21,541,089 21,880,200
Leased Operators 77,488 77,488 25,000 4,858,071 4,890,000
Operating Expenses
Fuel 3,180 3,180 - 4,266,071 5,037,000
Occupancy costs 219,802 219,802 208,000 1,661,903 1,851,100
Equipment Costs 299,622 299,622 120,000 2,062,240 2,340,800
Insurance 236,850 236,850 485,000 5,385,462 6,181,800
Other Operating Expenses 455,259 455,259 620,000 8,069,327 10,451,999
-------------- ------------- -------------- --------------- ------------- ------------
Total Operating Expenses 1,214,713 1,214,713 1,433,000 21,445,003 25,862,699
Deposits with Key Vendors - - - 41,148 150,000
CAPEX - Equipment Refurbishment - - - 13,050 399,200
Deferred Rental and Leasing - - - 63,789 1,414,000
Costs
Restructuring Costs 481,781 227,976 709,757 1,283,800 2,186,428 5,365,400
Remittance of Equipment Sales 2,662,468 2,662,468 3,538,179 -
Proceeds to Secured Lender
Inter - Account Transfer 657,131 (657,131) -
-------------- ------------- -------------- --------------- ------------- ------------
Total Disbursements 5,201,197 - 5,201,197 3,263,800 53,686,757 59,961,499
-------------- ------------- -------------- --------------- ------------- ------------
Net Cash Flow/Requirements (1,231,134) - (1,231,134) 1,123,200 2,973,893 (3,053,499)
Opening Cash 5,120,710 5,120,710 (2,859,698) 915,683 1,317,000
-------------- ------------- -------------- --------------- ------------- ------------
Closing Cash $ 3,889,576 $ 3,889,576 $ (1,736,498) $ 3,889,576 $ (1,736,499)
============== ============= ============== =============== ============= ============
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
- ----------------------------------------------------------------------------------------------
Q1 Q2 Q3
-- -- --
TOTAL DISBURSEMENTS $ 150,000 $ 31,512,851 $ 22,023,906
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS 0 0 0
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES
(i.e. from escrow accounts) 0 0 0
------------ --------------- -------------
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 150,000 $ 31,512,851 $ 22,023,906
============ =============== =============
Note 1: The Operating Account represents the aggregate of the Company's
operating accounts including $US & $Cnd Disbursement and Lockbox accounts.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: September 1, 2001 to September 30, 2001
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
A bank reconciliation must be included for each bank account. The debtor's
bank reconciliation may be substituted for this page.
Expressed in USD Expressed in USD
Converted @ Converted @
1:1.51 1:1.1.51
------------------------------------------------------------------------------------
1 2 3 4 5 6
Operating Operating Operating
(Mellon (Mellon Canada Operating Operating Operating (Bank of Nova
Lockbox) Lockbox) (Mellon DE) (First Union) (Mellon) Scotia)
#145-2480 #01-600052 #8016-376-9 #2000032632253 #0090907 #00820-15
Note 1 Note 2 Note 3 Note 4 Note 5 Note 6
------------------------------------------------------------------------------------
BALANCE PER $3,814,264 $153,698 $352,093 $10,931 ($761,482) ($698)
BOOKS
- --------------------------------------------------------------------------------------------------
BANK BALANCE $3,619,927 $62,399 $352,093 $10,944 $0 $56,039
(+) DEPOSITS $0 $0 $0 $0 $0 $0
IN TRANSIT
(-)
OUTSTANDING ($163,486) $0 $0 $0 $0 ($48,340)
CHECKS
OTHER $0 $0 $0 $0 $0 $0
------------------------------------------------------------------------------------
ADJUSTED $3,456,441 $62,399 $352,093 $10,944 $0 ($7,699)
BANK BALANCE*
------------------------------------------------------------------------------------
*Adjusted
bank balance
must equal
balance
per books
(see Note 11)
DEPOSITS IN None None None None None None
TRANSIT
CHECKS Yes None None None None Yes
OUTSTANDING
- -------------------------------------------------------------------------------
7 8 9 10 11 12
Tax Tax Tax Matlack
Payroll Payroll Prefunding Prefunding Prefunding Inc.
(Mellon) (Mellon) Mellon Mellon Mellon Working
#119-8127 #021-8376 #021-81812 #021-8309 #021-8931 Funds
Note 7 Note 8 Note 9 Note 9 Note 9 Note 10 Grand Total
- -------------------------------------------------------------------------------
$371,796 $0 $202 $0 $0 $26,754 $3,967,558
- -------------------------------------------------------------------------------
$131,221 $15,933 $0 $0 $0 $4,248,556
$0
($131,221) ($15,933) $0 ($358,980)
$0
- -------------------------------------------------------------------------------
$0 $0 $0 $0 $0 $0 $3,889,576
- -------------------------------------------------------------------------------
(NOTE 11)
None None None None None None
ALL ALL None None None None
OTHER
Note 1: This account is used primarily for collection of cash receipts on trade
receivables, to wire funds to trade suppliers and to fund the payroll
accounts, as well as to receive wire transfers of funds from outside
parties.
Note 2: This account is used primarily for collection of cash receipts on
Canadian trade receivables. Proceeds received in this account are
transferred on a regular basis to the Bank of Nova Scotia account.
Note 3: This account is used for cash receipts unrelated to trade receivables.
Note 4: This account is not active.
Note 5: This account is used for disbursements to pay trade payables by check.
The list of outstanding checks is attached to the Company's Bank
reconciliation.
Note 6: This account is used for $Cnd disbursements to pay trade payables and
salaries by check. The list of outstanding checks is attached to the
Company's Bank reconciliation.
Note 7: This account is the payroll check disbursement account. A detailed
listing of outstanding checks cannot be provided to respect the
confidentiality of the payees.
Note 8: This account is used to pay salaries by direct deposit.
Note 9: These accounts are funded by the Mellon lockbox account to pay various
taxes.
Note 10: This represents the aggregate of the terminal working fund accounts,
the funding of which are reflected as disbursements in the Schedule of Cash
Receipts & Disbursements.
Note 11: The Adjusted Bank Balance represents the Bank balance net of
Post-Petition checks in circulation. The Balance per Book represents the
bank balance net of Pre- & Post-Petition checks in circulation
(Pre-Petition checks have not yet been voided.)
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: September 1, 2001 to September 30, 2001
STATEMENT OF OPERATIONS
(Income Statement)
The Statement of Operations is to be prepared on an accrual basis. The accrual
basis of accounting recognizes revenue when it is realized and expenses when
they are incurred, regardless of when cash is actually received or paid.
Current Cumulative
Month Filing to Date
----- --------------
REVENUES
Revenue (Net) $1,113,071 $39,565,016
========================= ========================
OPERATING EXPENSES
Owned Compensation 411,048 9,790,366
Leased Operator Compensation 30,302 5,047,924
Fuel Expense 17,111 3,043,352
Misc. Direct Costs 115,744 3,771,750
Cleaning Expenses 11,731 4,262,855
Mechanics Compensation 40,719 1,266,736
Misc. Maintenance Expense 148,494 1,771,965
Equipment Costs 674,518 7,156,398
Terminal Expenses 2,556,691 8,147,244
------------------------- ------------------------
TOTAL OPERATING EXPENSES 4,006,358 44,258,590
------------------------- ------------------------
GROSS PROFIT / (LOSS) (2,893,287) (4,693,574)
========================= ========================
G&A EXPENSES 3,233,637 10,042,352
------------------------- ------------------------
OPERATING PROFIT / (LOSS) (6,126,924) (14,735,926)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment 248,289 (58,569)
Other Income/Deductions 537,838 529,100
------------------------- ------------------------
TOTAL OTHER INCOME/EXPENSES 786,127 470,531
------------------------- ------------------------
PROFIT / (LOSS) ($6,913,051) ($15,206,457)
========================= ========================
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
- -----------------------------------------------------------------------------------------------------------------
Revenue
Owned Linehaul Revenue 0 20,035,706
Owned Accessorial Revenue 0 4,477,068
Leased Linehaul Revenue 0 6,865,934
Leased Accessorial Revenue 0 774,372
Cleaning Revenue 0 4,970,227
Other Operating Revenue 1,113,071 1,131,525
X-Rail Revenue 0 986,185
Maintenance Revenue 0 323,999
------------------------ ----------------------
1,113,071 39,565,016
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly (5,901) 3,089,975
Driver Overtime Pay 0 34,120
Contractual Pay Mile 29,804 3,554,699
Fringe Benefits 387,145 3,111,572
------------------------ ----------------------
411,048 9,790,366
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp 16,445 4,951,306
Purchased Transportation 13,857 96,618
------------------------ ----------------------
30,302 5,047,924
------------------------ ----------------------
Fuel Expense
Fuel Terminal 0 1,141,868
Fuel Outside 14,827 1,858,209
Fuel Taxes 1,539 3,904
Oil and Oil Tax 745 39,371
------------------------ ----------------------
17,111 3,043,352
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 0 203,219
Utility Fringe Benefits 0 7,902
Tire 811 401,903
Hose (2,803) 158,944
Meals 710 226,995
Lay Over 5,521 610,702
Tolls 3,893 211,462
Fines 868 14,325
Mileage Taxes 0 112,494
Insurance 106,744 1,823,804
------------------------ ----------------------
115,744 3,771,750
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 6,872 1,037,567
Overtime Pay 171 42,431
Fringe Benefits 54,689 690,560
Cleaning Supplies (6,837) 688,807
Waste Treatment 28,362 931,729
Outside Contractors (71,526) 772,484
Net Cleaning Interbranch 0 (1,285)
Environmental 0 100,562
------------------------ ----------------------
11,731 4,262,855
------------------------ ----------------------
Mechanics Compensation
Mechanics Pay 4,016 772,715
Overtime Pay 92 53,916
Fringe Benefits 36,611 440,356
Net Mechanics Interbranch 0 0
------------------------ ----------------------
40,719 1,266,987
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: May 1, 2001 to May 31, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
- -----------------------------------------------------------------------------------------------------------------
Misc Maintenance Expense
Parts Expense 147,173 753,899
Outside Repairs 14,815 786,006
Tire Repair (11,471) 94,453
Shop Expense (2,023) 137,607
------------------------ ----------------------
148,494 1,771,965
------------------------ ----------------------
Equipment Costs
Tractor Depreciation (801) 56,373
Tractor Rent 141,694 2,539,124
Trailer Depreciation 348 1,017,392
Trailer Rent 0 88,032
License 157,187 952,479
Permit 13,004 96,196
Interest 363,086 2,405,552
------------------------ ----------------------
674,518 7,155,148
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe 1,725,890 2,995,733
Utilities 24,427 834,070
Communication Equipment 0 101,824
Communication Usage 4,174 592,120
Facility Maintenance 3,945 295,808
Facility Occupancy 123,191 1,353,838
Transportation General 675,064 1,973,851
------------------------ ----------------------
2,556,691 8,147,244
------------------------ ----------------------
G&A Expenses
Salaries Expense 347,412 3,302,276
Fringe Benefits 307,336 414,562
Communications Basic 800 74,365
Communication Services 4,504 7,442
Facilities - Rents 0 293,026
General Office Supplies (1,028) 22,500
IBM Supplies 0 4,147
Conventions & Seminars 0 14,322
Postage 63 79,343
Travel & Other 698 169,430
Outside Services 1,343,014 3,288,367
Computer Software 0 35,794
General & Admin 2,055 190,623
Marketing Promotions 0 4,575
Legal 2,253 177,311
Insurance 0 266,173
Dues & Contributions 0 361
Depreciation 0 118,339
Depreciation - Leasehold 0 40,740
Computer Equipment Rent 9,561 318,565
Other Expense/Terminal Exp. 1,216,969 1,220,091
------------------------ ----------------------
3,233,637 10,042,352
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: September 1, 2001 to September 30, 2001
BALANCE SHEET
The Balance Sheet is to be completed on an accrual basis only. Pre-petition
liabilities must be classified separately from postpetition obligations.
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
- --------------------------------------------------------------------------------------------------------------------
CURRENT ASSETS
Cash $3,967,558 $389,571
Restricted Cash 6,472,851
Accounts Receivable (Net) 1,643,447 18,045,306
Inventories 2,739,657 3,639,142
Prepaid Expenses 361,022 2,108,548
------------------------------ -----------------------------
TOTAL CURRENT ASSETS 15,184,535 24,182,567
------------------------------ -----------------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 75,474,247 98,199,269
Less: Accumulated Depreciation (Revenue) (58,089,998) (75,767,277)
Other Property & Equipment - Cost 71,213,308 72,633,319
Less: Accumulated Depreciation (Other) (41,591,609) (41,326,073)
------------------------------ -----------------------------
TOTAL PROPERTY & EQUIPMENT 47,005,948 53,739,238
------------------------------ -----------------------------
OTHER ASSETS
Goodwill 0 744,016
Other Assets 400,000 937,839
------------------------------ -----------------------------
TOTAL OTHER ASSETS 400,000 1,681,855
------------------------------ -----------------------------
TOTAL ASSETS $62,590,483 $79,603,660
=============================== ==============================
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
- --------------------------------------------------------------------------------------------------------------------
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
Accounts Payable 2,004,155
Accrued Wages & Benefits 579,935
Accrued Interest 2,405,551
Accrued Professional Fees (Note 1) 1,756,278
Accrued Taxes (refer to FORM MOR-4) 196,651
Accrued Insurance, Environmental & Other (1,055,651)
Amounts Due to Insiders (Note 1)
------------------------------ -----------------------------
TOTAL POSTPETITION LIABILITIES 5,886,919 0
------------------------------ -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 46,234,256 46,234,256
Priority Debt 2,608,541 9,330,355
Unsecured Debt 32,153,819 33,125,644
------------------------------ -----------------------------
TOTAL PRE-PETITION LIABILITIES 80,996,616 88,690,255
------------------------------ -----------------------------
------------------------------ -----------------------------
TOTAL LIABILITIES 86,883,535 88,690,255
=============================== ==============================
OWNER EQUITY
Capital Stock 8,814,434 8,814,434
Capital Surplus 10,619,341 10,619,341
Retained Earnings - Pre-Petition (28,520,370) (28,520,370)
Retained Earnings - Post-Petition (15,206,457)
Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
------------------------------- ------------------------------
NET OWNER EQUITY (24,293,052) (9,086,595)
=============================== ==============================
TOTAL LIABILITIES AND OWNERS' EQUITY $62,590,483 $79,603,660
=============================== ==============================
Note 1: Amounts due to insiders are included in Accounts Payables and Accrued
Wages.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: September 1, 2001 to September 30, 2001
STATUS OF POSTPETITION TAXES
The beginning tax liability should be the ending liability from the prior month
or, if this is the first report, the amount should be zero. Attach photocopies
of IRS Form 6123 or payment receipt to verify payment or deposit of federal
payroll taxes. Attach photocopies of any tax returns filed during the reporting
period.
Beginning Amount Ending
Tax Withheld Amount Date Check No. Tax
Liability or Accrued Paid Paid or EFT Liability
- --------------------------------------------------------------------------------------------------------------------
Federal
Withholding 0 96,473 97,984 Various EFT -1,511
FICA - Employee 0 41,716 41,343 Various EFT 373
FICA - Employer 0 41,349 40,972 Various EFT 377
Unemployment 416 0 4,135 -3,719
Other 0 0 0 0
------------ ------------ ------------ ------------ ------------- ----------
Total Federal Taxes 102,583 179,538 184,434 -4,480
------------ ------------ ------------ ------------ ------------- ----------
State and Local
Withholding 44,244 58,697 35,433 Various EFT 67,508
Sales 78,264 0 5,668 Various 72,596
Income 0 0 0 0
Unemployment -6,426 377 0 -6,049
Real & Personal Property 303,779 23,735 41,627 Various 285,887
Other 408,695 0 2,203 Various 406,492
------------ ------------ ------------ ------------ ------------- ----------
Total State and Local 823,074 82,809 84,931 826,434
------------ ------------ ------------ ------------ ------------- ----------
Total Taxes 925,657 262,347 269,365 821,954
------------ ------------ ------------ ------------ ------------- ----------
SUMMARY OF UNPAID POSTPETITION DEBITS
Attach aged listing of accounts payable.
Number of Days Past Due
Current 0-30 31-60 61-90 Over 90 Total
------- ---- ----- ----- ------- -----
- --------------------------------------------------------------------------------------------------------------------
Accounts Payable 2,004,155 0 2,004,155
Accrued Wages & Benefits 579,935 579,935
Accrued Interest 2,405,551 2,405,551
Accrued Professional Fees 1,756,278 1,756,278
Accrued Taxes (refer to FORM MOR-4) 196,651 196,651
Accrued Insurance, Environmental & (1,055,651) (1,055,651)
Other
------------ ------------ ------------ ------------ ------------- ----------
Total Post-Petition Debts 5,886,919 0 0 0 5,886,919
------------ ------------ ------------ ------------ ------------- ----------
Explain how and when the Debtor intends to pay any past-due post-petition debts.
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: September 1, 2001 to September 30, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
- ----------------------------------------------------------------------------------------------
Total Accounts Receivable at the beginning of the reporting period $3,359,414
+ Amounts billed during the period 89,319 (Note 1)
- Amounts collected during the period (3,456,517)
- Bad Debt and other write-offs (253,488)
+ Change in Reserve 936,000
- Other during the period 0
----------
Total Accounts Receivable at the end of the reporting period $ 674,728
==========
Accounts Receivable Aging Amount
- ----------------------------------------------------------------------------------------------
0 - 30 days old 171,123
31 - 60 days old 886,114
61 - 90 days old 704,952
91 + days old 1,226,539
2,988,728
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
Write-offs 0
Amount considered uncollectible (Bad Debt) (2,314,000)
----------
Accounts Receivable (Net) 674,728
==========
DEBTOR QUESTIONNAIRE
- ----------------------------------------------------------------------------------------------
Must be completed each month Yes No
- ----------------------------------------------------------------------------------------------
1. Have any assets been sold or transferred outside the normal course X
of business this reporting period? If yes, provide an explanation
below.
2 Have any funds been disbursed from any account other than a debtor X
in possession account this reporting period? If yes, provide an
explanation below.
3. Have all postpetition tax returns been timely filed? If no, X
provide an explanation below.
4. Are workers compensation, general liability and other necessary X
insurance coverages in effect? If no, provide an explanation below.
Note 1: This amount differs from the Revenue reported on MOR-2 due to the
sales tax and foreign exchange posted to the G/L.