Exhibit 99.1
Trenwick Group Ltd.
UNITED STATES BANKRUPTCY COURT
_______________DISTRICT OF_______________
In re: Trenwick Group Ltd. Case No. 03-12636 (MFW)
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Reporting Period: December 2003
--------------
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20
days after end of month.
Submit copy of report to any official committee appointed in the case.
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Document Explanation
Required Documents Form No. Attached Attached
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Schedule of Cash Receipts and Disbursements MOR-1 Yes
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 (Con't) Yes
Copies of bank statements N/A
Cash disbursements journals N/A
Statement of Operations MOR-2 Yes
Balance Sheet MOR-3 Yes
Status of Postpetition Taxes MOR-4 N/A
Copies of IRS Form 6123 or payment receipt N/A
Copies of tax returns filed during reporting period N/A
Summary of Unpaid Postpetition Debts MOR-4 Yes
Listing of aged accounts payable Yes
Accounts Receivable Reconciliation and Aging MOR-5 Yes
Debtor Questionnaire MOR-5 Yes
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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 of my knowledge and
belief.
/s/ Alan L. Hunte January 20, 2004
- ----------------------------------------- -----------------------------
Signature of Debtor Date
/s/ Alan L. Hunte January 20, 2004
- ----------------------------------------- -----------------------------
Signature of Joint Debtor Date
/s/ Alan L. Hunte January 20, 2004
- ----------------------------------------- -----------------------------
Signature of Authorized Individual* Date
Alan L. Hunte January 20, 2004
- ----------------------------------------- -----------------------------
Printed Name of Authorized Individual* Date
*Authorized individual must be an officer, director or shareholder if debtor is
a corporation; a partner if debtor is a partnership; a manager or member if
debtor is a limited liability company.
Exhibit 99.1
Trenwick Group Ltd.
In re: Trenwick Group Ltd Case No. 03-12636 (MFW)
Schedule of Cash Receipts & Disbursements Rep Per December 2003
Bank Accounts
Operating Payroll Tax Other
-----------------------------------------------
Cash - Beg of Month 124,420.94 -- NA NA
-----------------------------------------------
Receipts:
Cash Sales -- -- -- --
Accounts Rec -- -- -- --
Loans & Advances -- -- -- --
Sale of Assets -- -- -- --
Other -- -- --
Transfers -- -- -- --
-----------------------------------------------
Total Receipts -- --
-----------------------------------------------
Disbursements:
Net Payroll -- -- -- --
Payroll Taxes -- -- -- --
Sales, Use, & Other Tax -- -- -- --
Inventory Purchases -- -- -- --
Secured Rental/Leases -- -- -- --
Insurance -- -- -- --
Administrative -- -- -- --
Selling -- -- -- --
Other -- -- -- --
Transfers to P/R Acct -- -- -- --
Professional Fees -- -- -- --
Court Costs -- -- -- --
-----------------------------------------------
Total Disbursements: -- -- -- --
-----------------------------------------------
Net Cash Flow: -- -- -- --
-----------------------------------------------
Cash: End of Month 124,420.94 -- -- --
===============================================
FORM MOR-1
Exhibit 99.1
Trenwick Group Ltd.
Trenwick Group Ltd
Bank Reconciliations
December 2003
The following Chase Accounts have been reconciled
Operating:
Location: JPMorganChase, NY
ABA No. 021-000-021
Month End
Book Balance $ 124,420.94
FORM MOR-1 (CON'T)
Exhibit 99.1
Trenwick Group Ltd.
Trenwick Group Ltd. Case No. 03-12636 (MFW)
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Debtor Reporting Period: December 2003
--------------
(Income Statement)
=====================================================================================
Month Ended Cumulative
REVENUES December 2003 Filing to Date
=====================================================================================
Gross Revenues $ -- $ (567,222)
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Less: Returns and Allowances -- --
- -------------------------------------------------------------------------------------
Net Revenue $ -- $ (567,222)
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COST OF GOODS SOLD --
- -------------------------------------------------------------------------------------
Beginning Inventory -- --
- -------------------------------------------------------------------------------------
Add: Purchases -- --
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Add:Cost of Labor -- --
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Add: Other costs (schedule attached) -- --
- -------------------------------------------------------------------------------------
Less: Ending Inventory -- --
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Cost of Goods Sold -- --
- -------------------------------------------------------------------------------------
Gross Profit -- (567,222)
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OPERATING EXPENSES
- -------------------------------------------------------------------------------------
Advertising -- --
- -------------------------------------------------------------------------------------
Auto and Truck Expense -- 13,522
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Bad Debts -- --
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Contributions -- --
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Employee Benefits Programs (28,964) 139,984
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Insider compensation* -- 68,710
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Insurance 13,963 378,041
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Management Fees/Bonuses -- --
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Office Expense 312 7,667
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Pension & Profit-Sharing Plans -- --
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Repairs and Maintenance -- --
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Rent and Lease Expense -- --
- -------------------------------------------------------------------------------------
Salaries/Commissions/Fees -- 8,054
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Supplies 741 2,768
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Taxes-Payroll -- --
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Taxes-Real Estate -- --
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Taxes-Other 9,227 15,957
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Travel and Entertainment -- --
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Utilities -- --
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Other (attach schedule) 92,592 2,055,184
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Total Operating Expenses Before Depreciation 87,871 2,689,887
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Depreciation/Depletion/Amortization 129,529 568,255
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Net Profit(Loss) Before Other Income & Expenses (217,400) (3,825,364)
- -------------------------------------------------------------------------------------
OTHER INCOME AND EXPENSES
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Other Income (attach schedule) (37,372,982) (53,117,808)
- -------------------------------------------------------------------------------------
Interest Expense -- --
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Other Expense (attach schedule) -- 33,099,059
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Net Profit (Loss) Before Reorganization Items (37,590,383) (90,042,231)
- -------------------------------------------------------------------------------------
REORGANIZATION ITEMS
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Professional Fees -- --
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U.S. Trustee Quarterly Fees -- --
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Interest Earned on Accumulated Cash --
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from Chapter 11 (see continuation sheet) 140 3,146
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Gain(Loss) from Sale of Equipment -- --
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Other Reorganization Expenses (attach schedule) -- 43,834
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Total Reorganization Expenses (140) 40,688
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Income Taxes -- --
- -------------------------------------------------------------------------------------
Net Profit (Loss) $(37,590,242) $(90,082,919)
=====================================================================================
* Insider compensation includes amounts paid to members of the Runoff
Management Team. The Trenwick group's U.S. operations currently have an
additional 27 officers which were not included in this amount.
** Represents amounts charged by Trenwick affiliates under the Administrative
Services Agreement
FORM MOR-2
Exhibit 99.1
Trenwick Group Ltd.
Trenwick Group Ltd. Case No. 03-12636 (MFW)
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Debtor Reporting Period: December 2003
--------------
STATEMENT OF OPERATIONS - continuation sheet
================================================================================
Month Ended Cumulative
BREAKDOWN OF "OTHER" CATEGORY December 2003 Filing to Date
================================================================================
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Other Costs
- --------------------------------------------------------------------------------
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- --------------------------------------------------------------------------------
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Other Operational Expenses
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Other Fees 92,592 2,054,231
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Data Processing -- 953
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Total Other Expenses 92,592 2,055,184
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Other Income
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Equity in Undistributed Loss of
Unconsolidated Subsidiaries (37,372,982) (53,117,808)
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Total Other Income (37,372,982) (53,117,808)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Other Expenses
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Loss on Sale of Trenwick International Ltd. -- 33,099,059
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- --------------------------------------------------------------------------------
Other Reorganization Expenses
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Bankruptcy Related Fees -- 43,834
- --------------------------------------------------------------------------------
================================================================================
FORM MOR-2
Exhibit 99.1
Trenwick Group Ltd.
Trenwick Group Ltd. Case No. 03-12636 (MFW)
- ---------------------------- -----------------
Debtor Reporting Period: December 31, 2003
-----------------
BALANCE SHEET
- ------------------------------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
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CURRENT ASSETS
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Unrestricted Cash and Equivalents -- --
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Restricted Cash and Cash Equivalents (see continuation sheet) 613,945 655,336
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Accounts Receivable (Net) 219,092 (591,090)
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Notes Receivable -- --
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Inventories -- --
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Prepaid Expenses 85,744 1,088,137
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Professional Retainers 2,156,165 2,200,000
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Other Current Assets (attach schedule) -- 3,861
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TOTAL CURRENT ASSETS $ 3,074,946 $ 3,356,244
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PROPERTY AND EQUIPMENT
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Real Property and Improvements -- --
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Machinery and Equipment -- --
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Furniture, Fixtures and Office Equipment 73,467 82,181
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Leasehold Improvements -- --
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Vehicles -- --
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Less Accumulated Depreciation (39,796) (33,020)
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TOTAL PROPERTY & EQUIPMENT $ 33,671 $ 49,161
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OTHER ASSETS
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Loans to Insiders* -- --
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Other Assets (attach schedule) 119,122,375 220,135,876
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TOTAL OTHER ASSETS $ 119,122,375 $ 220,135,876
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TOTAL ASSETS $ 122,230,992 $ 223,541,281
========================================================================================================================
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BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
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LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)
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Accounts Payable -- --
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Taxes Payable (refer to FORM MOR-4) -- --
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Wages Payable -- 4,900
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Notes Payable -- --
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Rent/Leases - Building/Equipment -- --
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Secured Debt/Adequate Protection Payments -- --
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Professional Fees -- --
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Amounts Due to Insiders* -- --
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Other Postpetition Liabilities (attach schedule) 11,562 --
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TOTAL POSTPETITION LIABILITIES $ 11,562 $ 4,900
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LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
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Secured Debt -- --
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Priority Debt -- --
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Unsecured Debt 216,652,655 216,896,055
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TOTAL PRE-PETITION LIABILITIES $ 216,652,655 $ 216,896,055
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TOTAL LIABILITIES 216,664,217 216,900,955
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OWNER EQUITY
- ------------------------------------------------------------------------------------------------------------------------
Capital Stock 3,673,000 3,676,102
- ------------------------------------------------------------------------------------------------------------------------
Additional Paid-In Capital 574,262,130 574,823,017
- ------------------------------------------------------------------------------------------------------------------------
Partners' Capital Account -- --
- ------------------------------------------------------------------------------------------------------------------------
Owner's Equity Account -- --
- ------------------------------------------------------------------------------------------------------------------------
Retained Earnings - Pre-Petition (551,923,031) (551,923,031)
- ------------------------------------------------------------------------------------------------------------------------
Retained Earnings - Post-Petition (90,082,919) --
- ------------------------------------------------------------------------------------------------------------------------
Adjustments to Owner Equity (attach schedule) (30,362,405) (19,935,762)
- ------------------------------------------------------------------------------------------------------------------------
Post Petition Contributions (Distributions) (Draws) (attach schedule) -- --
- ------------------------------------------------------------------------------------------------------------------------
NET OWNER EQUITY $ (94,433,225) $ 6,640,326
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- ------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND OWNERS' EQUITY $ 122,230,992 $ 223,541,281
========================================================================================================================
FORM MOR-3
Exhibit 99.1
Trenwick Group Ltd.
Trenwick Group Ltd. Case No. 03-12636 (MFW)
- ---------------------------- -----------------
Debtor Reporting Period: December 31, 2003
-----------------
BALANCE SHEET - continuation sheet
- ----------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
OTHER CURRENT ASSETS
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Accrued Investment Income -- 3,861
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-- $ 3,861
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- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
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OTHER ASSETS
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Prepaid Deposits 19,622 19,622
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Investment in Subsidiaries 116,408,598 215,156,938
- ----------------------------------------------------------------------------------------------------
Miscellaneous Other Assets 2,694,155 4,959,316
- ----------------------------------------------------------------------------------------------------
119,122,375 $ 220,135,876
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
UNSECURED DEBTS (PRE-PETITION)
- ----------------------------------------------------------------------------------------------------
Accrued Expenses 1,056,327 1,299,727
- ----------------------------------------------------------------------------------------------------
Interest Payable 2,276,323 2,276,323
- ----------------------------------------------------------------------------------------------------
Due to Affiliates 94,479,224 94,479,224
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216,652,655 216,896,055
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
OTHER POSTPETITION LIABILITIES
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Due to Affiliates 11,562 --
- ----------------------------------------------------------------------------------------------------
11,562 --
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
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ADJUSTMENT TO OWNER EQUITY
- ----------------------------------------------------------------------------------------------------
Deferred Compensation (242,975) (1,125,099)
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Equity in Subsidiary (30,119,430) (18,810,663)
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(30,362,405) (19,935,762)
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FORM MOR-3
Exhibit 99.1
Trenwick Group Ltd.
In re Trenwick Group Ltd. Case No. 03-12636 (MFW)
----------------------- --------------
Debtor Reporting Period: December 2003
--------------
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
Tax Withheld or Check. No Ending Tax
Liability Accrued Amount Paid Date Paid or EFT Liability
========================================================================================================================
Federal
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Withholding -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
FICA-Employee -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
FICA-Employer -- -- -- --
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Unemployment -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Income -- -- -- --
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Other: -- -- -- --
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Total Federal Taxes -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
State and Local
- ------------------------------------------------------------------------------------------------------------------------
Withholding -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Sales -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Excise -- -- -- --
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Unemployment -- -- -- --
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Real Property -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Personal Property -- -- -- --
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Other: -- -- -- --
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Total State and Local -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total Taxes -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
SUMMARY OF UNPAID POSTPETITION DEBTS
Attach aged listing of accounts payable
- ------------------------------------------------------------------------------------------------------------------------
Number of Days Past Due
========================================================================
Current 0-30 31-60 61-90 Over 90 Total
- ------------------------------------------------------------------------------------------------------------------------
Accounts Payable 4,761 7,586 -- -- -- 12,347
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Wages Payable --
- ------------------------------------------------------------------------------------------------------------------------
Taxes Payable --
- ------------------------------------------------------------------------------------------------------------------------
Rent/Leases - Building --
- ------------------------------------------------------------------------------------------------------------------------
Rent/Leases - Equipment --
- ------------------------------------------------------------------------------------------------------------------------
Secured Debt/Adequate Protection Payments --
- ------------------------------------------------------------------------------------------------------------------------
Professional Fees --
- ------------------------------------------------------------------------------------------------------------------------
Amounts Due to Insiders --
- ------------------------------------------------------------------------------------------------------------------------
Other: --
- ------------------------------------------------------------------------------------------------------------------------
Other: --
- ------------------------------------------------------------------------------------------------------------------------
Total Postpetition Debts 4,761 7,586 -- -- -- 12,347
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FORM MOR-4
(9/99)
Exhibit 99.1
Trenwick Group Ltd.
Listing of aged accounts payable
Trenwick Group Ltd.
Vendor Invoice Date Services Invoice Number Amount Activity
------ ------------ -------- -------------- ------ --------
Equiserve 10/13/2003 September Service 159415 5,925.87 Transfer Agency Fee
CCH 10/21/2003 TGL 8K 7239715 1,143.74 TGL 8k reporting
CCH 10/21/2003 Lasalle Re 8k 7239713 516.22 LaSalle Re Holding 8k
-----------
31-60 days 7,585.83
Deracom 11/5/2003 10/27/2003 11014-37201-03 210.00 Limo svc
Equiserve 11/13/2003 October service 160816 3,810.21 Transfer Agency Fee
CCH 11/5/2003 October TGL 8k 7258245 740.94 Filing fee for TGL 8k
-----------
0-30 days 4,761.15
-----------
Total $ 12,346.98
===========
Exhibit 99.1
Trenwick Group Ltd.
Trenwick Group Ltd. Case No. 03-12636 (MFW)
- ---------------------------- --------------
Debtor
Reporting Period: December 2003
--------------
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
====================================================================================== ===============
Accounts Receivable Reconciliation Amount
====================================================================================== ===============
Total Accounts Receivable at the beginning of the reporting period $ 311,687.39
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+ Amounts billed during the peiod (92,595.62)
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- - Amounts collected during the peiod --
- -------------------------------------------------------------------------------------- ---------------
Total Accounts Receivable at the end of the reporting period 219,091.77
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====================================================================================== ===============
Accounts Receivable Aging Amount
====================================================================================== ===============
0 - 30 days old --
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31 - 60 days old --
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61 - 90 days old 50,513.11
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91 + days old 9,611,100.66
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Total Accounts Receivable 9,661,613.77
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Amount considered uncollectible (Bad Debt) (9,442,522.00)
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Accounts Receivable (Net) 219,091.77
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DEBTOR QUESTIONNAIRE
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Must be completed each month Yes No
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1. Have any assets been sold or transferred outside the normal course of business
this reporting period? If yes, provide an explanation below. X
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2. Have any funds been disbursed from any account other than a debtor in
possession account this reporting period? If yes, provide and explanation below. X
- -------------------------------------------------------------------------------------- ---------------
3. Have all postpetition tax returns been timely filed? If no, provide an explanation
below. X
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4. Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below. X
- -------------------------------------------------------------------------------------- ---------------
FORM MOR-5
(9/99)