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): January 10, 2002
---------------------
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 October 1, 2001 to
October 31, 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(h) Monthly Operating Report for the period from October 1, 2001
to October 31, 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: January 15, 2002 By: /s/ Stephen E. Judge
---------------------------------------------
Stephen E. Judge
Chief Reorganization Officer
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99(h) Monthly Operating Report for the period from October 1, 2001 to
October 31, 2001.
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: October 1, 2001 to October 31, 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
/S/ Stephen E. Judge January 8, 2002
- -------------------------------- ----------------------
Signature of Authorized Individual* Date
Stephen E. Judge Chief Reorganization Officer
- ------------------------------------- -------------------------------
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: October 1, 2001 to October 31, 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 Oct. 1, 2001 to Oct. 31, 2001 Cumulative Since Filing
OPERATING PAYROLL & TAX Actual Projected Actual Projected
--------- ------------- ------ --------- ------ ---------
(Note 1)
Cash Receipts
Collection of Accounts $ 411,880 $ 411,880 $ 854,000 $ 55,546,551 $ 58,407
Receivable
Other 3,140,355 3,140,355 241,600 4,666,334 1,595,600
-------------- --------------- -------------- --------------- ------------- ------------
Total Cash Receipts 3,552,235 3,552,235 1,095,600 60,212,885 58,003,600
-------------- --------------- -------------- --------------- ------------- ------------
- -
Cash Disbursements
Total Payroll 51,449 254,992 308,441 177,000 21,847,529 22,057,200
Leased Operators 3,159 3,159 4,861,230 4,890,000
Operating Expenses
Fuel (1,571) (1,571) - 4,264,500 5,037,000
Occupancy costs 112,675 112,675 131,000 1,774,578 1,982,100
Equipment Costs 49,691 49,691 98,000 2,111,931 2,438,800
Insurance 254,145 254,145 233,600 5,639,610 6,415,400
Other Operating Expenses 359,134 359,134 124,000 8,428,461 10,575,999
-------------- --------------- -------------- --------------- ------------- ------------
Total Operating Expenses 774,077 774,077 586,600 22,219,080 26,448,299
Deposits with Key Vendors - - - 41,148 150,000
CAPEX - Equipment Refurbishment - - - 13,050 399,200
Deferred Rental and Leasing - - - 53,789 1,414,000
Costs
Restructuring Costs 505,237 338,414 846,651 1,070,800 3,033,079 6,436,200
Remittance of Equipment Sales 2,848,800 2,848,800 6,386,987 -
Proceeds to Secured Lender
Inter - Account Transfer 593,406 (593,406) -
-------------- --------------- -------------- --------------- ------------- ------------
Total Disbursements 4,779,136 - 4,779,136 1,834,400 58,455,892 61,795,699
-------------- --------------- -------------- --------------- ------------- ------------
Net Cash Flow/Requirements (1,226,901) - (1,226,901) (738,800) 1,746,993 (3,792,299)
Opening Cash 3,889,576 3,889,576 (1,736,498) 915,682 1,317,000
-------------- --------------- -------------- --------------- ------------- ------------
Closing Cash $ 2,882,675 $ 2,882,675 $ (2,475,298) $ 2,662,675 $(2,475,299)
============== =============== ============== =============== ============= ============
THE FOLLOWING SECTION MUST BE COMPLETED
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
Q1 Q2 Q3 Q4
-- -- -- --
TOTAL DISBURSEMENTS $ 150,000 $ 31,512,851 $ 22,023,905 $ 4,779,136
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 $ 22,023,905 $ 4,779,136
========= ============ ============ ===========
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: October 1, 2001 to October 31, 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
Expressed in USD 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 $2,763,498 ($31,894) $832,410 $10,918 ($802,787) ($3,221)
BOOKS
- -----------------------------------------------------------------------------------------------------
BANK BALANCE $2,747,929 $21,866 $73,126 $10,931 $0 $49,565
(+) DEPOSITS $0 $0 $0 $0 $0 $0
IN TRANSIT
(-)
OUTSTANDING ($204,791) $0 $0 $0 $0 ($35,951)
CHECKS
OTHER $0 $0 $0 $0 $0 $0
---------------------------------------------------------------------------------------
ADJUSTED $2,543,138 $21,866 $73,126 $10,931 $0 $13,614
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
OTHER
- ---------------------------------------------------------------------------------
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
- ---------------------------------------------------------------------------------
$361,358 $0 $202 $0 $0 $14,985 $3,151,911
- ---------------------------------------------------------------------------------
$113,536 $15,933 $0 $0 $0 $3,032,886
$0
($113,536) ($15,933) $0 ($370,211)
$0
- ---------------------------------------------------------------------------------
$0 $0 $0 $0 $0 $0 $2,662,675
- ---------------------------------------------------------------------------------
(NOTE 11)
None None None None None None
ALL ALL None None None None
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: October 1, 2001 to October 31, 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) $313,467 $39,878,483
========================= ========================
OPERATING EXPENSES
Owned Compensation 2,244 9,792,610
Leased Operator Compensation (30,401) 5,017,523
Fuel Expense (54,663) 2,988,689
Misc. Direct Costs (64,676) 3,707,074
Cleaning Expenses (51,316) 4,211,539
Mechanics Compensation 0 1,266,736
Misc. Maintenance Expense 166,808 1,938,773
Equipment Costs 46,332 7,202,730
Terminal Expenses 547,711 8,694,955
------------------------- ------------------------
TOTAL OPERATING EXPENSES 562,039 44,820,629
------------------------- ------------------------
GROSS PROFIT / (LOSS) (248,572) (4,942,146)
========================= ========================
G&A EXPENSES 759,592 10,801,944
------------------------- ------------------------
OPERATING PROFIT / (LOSS) (1,008,164) (15,744,090)
OTHER INCOME / EXPENSE
Gain/Loss on Sale of Equipment (1,108,884) (1,167,453)
Other Income/Deductions (520) 528,580
------------------------- ------------------------
TOTAL OTHER INCOME/EXPENSES (1,109,404) (638,873)
------------------------- ------------------------
PROFIT / (LOSS) $101,240 ($15,105,217)
========================= ========================
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: October 1, 2001 to October 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 313,467 1,444,992
X-Rail Revenue 0 986,185
Maintenance Revenue 0 323,999
------------------------ ----------------------
313,467 39,878,483
------------------------ ----------------------
Owned Compensation
Driver Pay Hourly 1,625 3,091,600
Driver Overtime Pay 0 34,120
Contractual Pay Mile 27 3,554,726
Fringe Benefits 592 3,112,164
------------------------ ----------------------
2,244 9,792,610
------------------------ ----------------------
Leased Operator Comp
Leased Operator Comp (5,153) 4,946,153
Purchased Transportation (25,248) 71,370
------------------------ ----------------------
(30,401) 5,017,523
------------------------ ----------------------
Fuel Expense
Fuel Terminal 0 1,141,868
Fuel Outside (42,760) 1,815,449
Fuel Taxes 0 3,904
Oil and Oil Tax (11,903) 27,468
------------------------ ----------------------
(54,663) 2,988,689
------------------------ ----------------------
Misc Direct Costs
Utility Pay Hourly 0 203,219
Utility Fringe Benefits 0 7,902
Tire (1,421) 400,482
Hose (2,730) 156,214
Meals (8,270) 218,725
Lay Over 914 611,616
Tolls (46,397) 165,065
Fines 127 14,452
Mileage Taxes 0 112,494
Insurance (6,899) 1,816,905
------------------------ ----------------------
(64,676) 3,707,074
------------------------ ----------------------
Cleaning Expenses
Cleaners Pay 1,348 1,038,915
Overtime Pay 0 42,431
Fringe Benefits 99 690,659
Cleaning Supplies (95,765) 593,042
Waste Treatment 90,859 1,022,588
Outside Contractors (47,902) 724,582
Net Cleaning Interbranch 0 (1,285)
Environmental 45 100,607
------------------------ ----------------------
(51,316) 4,211,539
------------------------ ----------------------
Mechanics Compensation
Mechanics Pay 0 772,715
Overtime Pay 0 53,916
Fringe Benefits 0 440,105
Net Mechanics Interbranch 0 0
------------------------ ----------------------
0 1,266,736
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: October 1, 2001 to October 31, 2001
STATEMENT OF OPERATIONS - continuation sheet
Cumulative
BREAKDOWN OF "OTHER" CATEGORY Month Filing to Date
Misc Maintenance Expense
Parts Expense 205,000 958,899
Outside Repairs (29,881) 786,125
Tire Repair (4,995) 89,458
Shop Expense (3,316) 134,291
------------------------ ----------------------
166,808 1,938,773
------------------------ ----------------------
Equipment Costs
Tractor Depreciation 3,333 59,706
Tractor Rent 2,326 2,541,450
Trailer Depreciation 27,485 1,044,877
Trailer Rent 12,805 102,087
License 267 952,746
Permit 116 96,312
Interest 0 2,405,552
------------------------ ----------------------
46,332 7,202,730
------------------------ ----------------------
Terminal Expenses
Terminal Salary & Fringe 219,204 3,214,937
Utilities 105,775 939,845
Communication Equipment 0 101,824
Communication Usage 124,513 716,633
Facility Maintenance (4,564) 291,244
Facility Occupancy 44,118 1,397,956
Transportation General 58,665 2,032,851
------------------------ ----------------------
547,711 8,694,955
------------------------ ----------------------
G&A Expenses
Salaries Expense 468,379 3,770,655
Fringe Benefits 33,968 448,530
Communications Basic 591 74,956
Communication Services 290 7,732
Facilities - Rents 1,829 294,855
General Office Supplies 3,866 26,366
IBM Supplies 0 4,147
Conventions & Seminars 0 14,322
Postage 2,619 81,962
Travel & Other 3,940 173,370
Outside Services 81,803 3,370,170
Computer Software 431 36,225
General & Admin 5,069 195,692
Marketing Promotions 2,435 7,010
Legal 110,741 288,052
Insurance 22,190 288,363
Dues & Contributions 0 361
Depreciation 0 118,339
Depreciation - Leasehold 0 40,740
Computer Equipment Rent 21,441 340,006
Other Expense/Terminal Exp. 0 1,220,091
------------------------ ----------------------
759,592 10,801,944
------------------------ ----------------------
In re: Matlack Systems, Inc., et al. Case No. 01-1114 (MFW)
Reporting Period: October 1, 2001 to October 31, 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 $3,151,911 $389,571
Restricted Cash 21,035,929
Accounts Receivable (Net) 840,575 18,045,306
Inventories 2,073,839 3,639,142
Prepaid Expenses 359,392 2,108,548
------------------------------ -----------------------------
TOTAL CURRENT ASSETS 27,461,646 24,182,567
------------------------------ -----------------------------
PROPERTY AND EQUIPMENT
Revenue Equipment - Cost 56,519,127 98,199,269
Less: Accumulated Depreciation (Revenue) (36,896,079) (75,767,277)
Other Property & Equipment - Cost 55,837,507 72,633,319
Less: Accumulated Depreciation (Other) (41,591,609) (41,326,073)
------------------------------ -----------------------------
TOTAL PROPERTY & EQUIPMENT 33,868,946 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 $61,730,592 $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 1,354,876
Accrued Wages & Benefits 491,733
Accrued Interest 2,405,551
Accrued Professional Fees (Note 1) 1,574,394
Accrued Taxes (refer to FORM MOR-4) 141,944
Accrued Insurance, Environmental & Other (938,141)
Amounts Due to Insiders (Note 1)
------------------------------ -----------------------------
TOTAL POSTPETITION LIABILITIES 5,030,357 0
------------------------------ -----------------------------
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
Secured Debt 46,234,256 46,234,256
Priority Debt 2,503,972 9,330,355
Unsecured Debt 32,153,819 33,125,644
------------------------------ -----------------------------
TOTAL PRE-PETITION LIABILITIES 80,892,046 88,690,255
------------------------------ -----------------------------
------------------------------ -----------------------------
TOTAL LIABILITIES 85,922,404 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 (15,105,217)
Post-Petition Contributions (Distributions) (Draws)
(attach schedule)
------------------------------- ------------------------------
NET OWNER EQUITY (24,191,812) (9,086,595)
------------------------------- ------------------------------
TOTAL LIABILITIES AND OWNERS' EQUITY $61,730,592 $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: October 1, 2001 to October 31, 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 -1,511 105,006 105,006 Various EFT -1,511
FICA - Employee 373 22,565 22,565 Various EFT 373
FICA - Employer 377 22,565 22,565 Various EFT 377
Unemployment -3,719 7 702 -4,414
Other 0 0 0 0
------------ ------------ ------------ ------------ ------------- ------------
Total Federal Taxes -4,480 150,143 150,838 -5,175
------------ ------------ ------------ ------------ ------------- ------------
State and Local
Withholding 67,508 19,376 38,443 Various EFT 48,441
Sales 72,596 0 0 Various 72,596
Income 0 0 0 0
Unemployment -6,049 6,049 0 0
Real & Personal Property 285,887 3,371 73,523 Various 215,735
Other 406,492 0 15,721 Various 390,771
------------ ------------ ------------ ------------ ------------- ------------
Total State and Local 826,434 28,796 127,687 727,543
------------ ------------ ------------ ------------ ------------- ------------
Total Taxes 821,954 178,939 278,525 722,368
============ ============ ============ ============ ============= ============
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 1,354,876 0 1,354,876
Accrued Wages & Benefits 491,733 491,733
Accrued Interest 2,405,551 2,405,551
Accrued Professional Fees 1,574,394 1,574,394
Accrued Taxes (refer to FORM MOR-4) 141,944 141,944
Accrued Insurance, Environmental & (938,141) (938,141)
Other
------------ ------------ ------------ ------------ ------------- ------------
Total Post-Petition Debts 5,030,9357 0 0 0 5,030,357
============ ============ ============ ============ ============= ============
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: October 1, 2001 to October 31, 2001
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period $ 674,728
+ Amounts billed during the period 0 (Note 1)
- Amounts collected during the period (411,880)
- Bad Debt and other write-offs (132,438)
+ Change in Reserve 2,259,000
- Other during the period $(2,239,976)
-----------
Total Accounts Receivable at the end of the reporting period $ 149,434
===========
Accounts Receivable Aging Amount
0 - 30 days old 0
31 - 60 days old 58,908
61 - 90 days old 64,482
91 + days old 81,044
204,434
Foreign exchange, Revenue Recognition, Sales Accrual Adjustments &
Write-offs 0
Amount considered uncollectible (Bad Debt) (55,000)
-----------
Accounts Receivable (Net) $ 149,434
===========
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.