Trenwick Group Ltd.
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
_______________DISTRICT OF_______________
In re: Trenwick Group Ltd. Case No. 03-12636 (MFW)
Reporting Period: September 2004
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
- ----------------------------------------------------------------------------------------------------------------
Schedule of Cash Receipts and Disbursements MOR-1 Yes
Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1 Yes
Copies of bank statements N/A
Cash disbursements journals MOR-1 Yes
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 N/A
Listing of aged accounts payable MOR-4 N/A
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.
October 20, 2004
- ------------------------------------------ Date
Signature of Debtor
October 20, 2004
- ------------------------------------------ Date
Signature of Joint Debtor
October 20, 2004
- ------------------------------------------ Date
Signature of Authorized Individual*
Alan L. Hunte
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Printed Name of Authorized Individual*
*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.
Trenwick Group Ltd.
Exhibit 99.1
In re: Trenwick Group Ltd. Case No. 03-12636 (MFW)
Schedule of Cash Receipts & Disbursements Reporting Period: September 2004
Bank Accounts
Operating Payroll Tax Other
------------------------------------------------------------------
Cash - Beg of Month 65,786.30 -- 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 (19,381.44) -- -- --
Court Costs -- -- -- --
------------------------------------------------------------------
Total Disbursements: (19,381.44) -- -- --
------------------------------------------------------------------
Net Cash Flow: (19,381.44) -- -- --
------------------------------------------------------------------
Cash: End of Month 46,404.86 -- -- --
==================================================================
FORM MOR-1
Trenwick Group Ltd.
Exhibit 99.1
Trenwick Group Ltd
Bank Reconciliations
September 2004
The following Chase Accounts have been reconciled
Operating:
Location: JPMorganChase, NY
ABA No. 021-000-021
Month End
Book Balance $ 46,404.86
FORM MOR-1
Trenwick Group Ltd.
Exhibit 99.1
Trenwick Group Ltd
Disbursements
September 2004
Date Amount Vendor Name
- ------------- -------------- ---------------------------------------------------------------------------
9/30/2004 216.30 Deraventures, invoice no.110143-37201-03
9/30/2004 2,903.18 Equiserve, invoice no. 170650
9/30/2004 5,215.26 Equiserve, invoice no. 172041
9/30/2004 2,892.43 Equiserve, invoice no. 173425
9/30/2004 668.00 CT Corporation invoice no. 1338360-RI
9/30/2004 676.00 CT Corporation invoice no. 1344162-RI
9/30/2004 1,063.00 CT Corporation invoice no. 11400750-RI
9/30/2004 797.00 CT Corporation invoice no. 1455621
9/30/2004 4,950.27 CPT invoice no.4130
-------------
TOTAL 19,381.44
-------------
FORM MOR-1
Trenwick Group Ltd.
Exhibit 99.1
Trenwick Group Ltd. Case No. 03-12636 (MFW)
Debtor Reporting Period: September 2004
Statement of Operations
(Income Statement)
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Month Ended Cumulative
REVENUES September 2004 Filing to Date
- ---------------------------------------------------------------------------------------
Gross Revenues $ -- $ (567,222)
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Less: Returns and Allowances -- --
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Net Revenue $ -- $ (567,222)
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COST OF GOODS SOLD
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Beginning Inventory -- --
- ---------------------------------------------------------------------------------------
Add: Purchases -- --
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Add:Cost of Labor -- --
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Add: Other costs (schedule attached) -- --
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Less: Ending Inventory -- --
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Cost of Goods Sold -- --
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Gross Profit -- (567,222)
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OPERATING EXPENSES
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Advertising -- --
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Auto and Truck Expense -- 13,522
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Bad Debts -- --
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Contributions -- --
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Employee Benefits Programs -- 236,015
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Insider compensation* -- 68,710
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Insurance 2,402 455,691
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Management Fees/Bonuses -- --
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Office Expense -- 8,207
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Pension & Profit-Sharing Plans -- --
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Repairs and Maintenance -- --
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Rent and Lease Expense -- --
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Salaries/Commissions/Fees -- (75,192)
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Supplies 797 12,012
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Taxes-Payroll -- --
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Taxes-Real Estate -- --
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Taxes-Other 8,108 53,375
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Travel and Entertainment -- --
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Utilities -- --
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Other (attach schedule) -- 1,992,544
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Total Operating Expenses Before Depreciation 11,307 2,764,884
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Depreciation/Depletion/Amortization 127,984 1,732,472
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Net Profit(Loss) Before Other Income & Expenses (139,291) (5,064,578)
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OTHER INCOME AND EXPENSES
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Other Income (attach schedule) (4,218,188) (59,781,073)
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Interest Expense -- --
- ---------------------------------------------------------------------------------------
Other Expense (attach schedule) -- 33,099,059
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Net Profit (Loss) Before Reorganization Items (4,357,479) (97,944,710)
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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) 261 (16,518)
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Gain(Loss) from Sale of Equipment -- --
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Other Reorganization Expenses (attach schedule) 4,950 148,519
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Total Reorganization Expenses 4,689 165,037
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Income Taxes -- --
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Net Profit (Loss) $(4,362,168) $(98,109,747)
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* Insiders represent members of the Runoff Management Team. The Trenwick group's
U.S. operations currently have an additional 24 officers which were not
considered insiders for purposes of this disclosure.
FORM MOR-2
Trenwick Group Ltd.
Exhibit 99.1
Trenwick Group Ltd. Case No. 03-12636 (MFW)
Debtor Reporting Period: September 2004
STATEMENT OF OPERATIONS - continuation sheet
- -----------------------------------------------------------------------------------
Month Ended Cumulative
BREAKDOWN OF "OTHER" CATEGORY September 2004 Filing to Date
- -----------------------------------------------------------------------------------
Other Costs
- -----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
Other Operational Expenses
- -----------------------------------------------------------------------------------
Board Related -- (62,640)
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Other Fees -- 2,054,231
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Data Processing -- 953
- -----------------------------------------------------------------------------------
TOTAL OTHER OPERATIONAL EXPENSES $ -- $ 1,992,544
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Other Income
- -----------------------------------------------------------------------------------
Equity in Undistributed Income (Loss) of
Unconsolidated Subsidiaries (4,218,188) (59,781,073)
- -----------------------------------------------------------------------------------
TOTAL OTHER INCOME $(4,218,188) $(59,781,073)
- -----------------------------------------------------------------------------------
Other Expenses
- -----------------------------------------------------------------------------------
Loss on Sale of Trenwick International Ltd. -- 33,099,059
- -----------------------------------------------------------------------------------
TOTAL OTHER EXPENSES $ -- $ 33,099,059
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Other Reorganization Expenses
- -----------------------------------------------------------------------------------
Bankruptcy Related Fees 4,950 148,519
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TOTAL OTHER REORGANIZATION EXPENSES $ 4,950 $ 148,519
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- -----------------------------------------------------------------------------------
FORM MOR-2
Trenwick Group Ltd.
Exhibit 99.1
Trenwick Group Ltd. Case No. 03-12636 (MFW)
Debtor Reporting Period: September 2004
BALANCE SHEET
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BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
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CURRENT ASSETS
- ----------------------------------------------------------------------------------------------------------------
Unrestricted Cash and Equivalents -- --
- ----------------------------------------------------------------------------------------------------------------
Restricted Cash and Cash Equivalents (see continuation sheet) 506,739 655,336
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Accounts Receivable (Net) 225,014 (591,090)
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Notes Receivable -- --
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Inventories -- --
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Prepaid Expenses 14,342 1,088,137
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Professional Retainers 2,001,195 2,200,000
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Other Current Assets (attach schedule) -- 3,861
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TOTAL CURRENT ASSETS $ 2,747,290 $ 3,356,244
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PROPERTY AND EQUIPMENT
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Real Property and Improvements -- --
- ----------------------------------------------------------------------------------------------------------------
Machinery and Equipment -- --
- ----------------------------------------------------------------------------------------------------------------
Furniture, Fixtures and Office Equipment -- 82,181
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Leasehold Improvements -- --
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Vehicles -- --
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Less Accumulated Depreciation -- (33,020)
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TOTAL PROPERTY & EQUIPMENT $ -- $ 49,161
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OTHER ASSETS
- ----------------------------------------------------------------------------------------------------------------
Loans to Insiders* -- --
- ----------------------------------------------------------------------------------------------------------------
Other Assets (attach schedule) 97,597,610 220,135,876
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TOTAL OTHER ASSETS $ 97,597,610 $ 220,135,876
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TOTAL ASSETS $ 100,344,899 $ 223,541,281
================================================================================================================
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BOOK VALUE AT END OF BOOK VALUE ON
LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE
- ----------------------------------------------------------------------------------------------------------------
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 -- --
- ----------------------------------------------------------------------------------------------------------------
Professional Fees -- --
- ----------------------------------------------------------------------------------------------------------------
Amounts Due to Insiders* -- --
- ----------------------------------------------------------------------------------------------------------------
Other Postpetition Liabilities (attach schedule) -- --
- ----------------------------------------------------------------------------------------------------------------
TOTAL POSTPETITION LIABILITIES $ -- $ 4,900
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LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)
- ----------------------------------------------------------------------------------------------------------------
Secured Debt -- --
- ----------------------------------------------------------------------------------------------------------------
Priority Debt -- --
- ----------------------------------------------------------------------------------------------------------------
Unsecured Debt 216,406,559 216,896,055
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TOTAL PRE-PETITION LIABILITIES $ 216,406,559 $ 216,896,055
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TOTAL LIABILITIES 216,406,559 216,900,955
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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 (98,109,747) --
- ----------------------------------------------------------------------------------------------------------------
Adjustments to Owner Equity (attach schedule) (43,964,013) (19,935,762)
- ----------------------------------------------------------------------------------------------------------------
Post Petition Contributions (Distributions) (Draws) (attach schedule) -- --
- ----------------------------------------------------------------------------------------------------------------
NET OWNER EQUITY $(116,061,660) $ 6,640,326
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND OWNERS' EQUITY $ 100,344,899 $ 223,541,281
================================================================================================================
FORM MOR-3
Trenwick Group Ltd.
Exhibit 99.1
Trenwick Group Ltd. Case No. 03-12636 (MFW)
Debtor Reporting Period: September 2004
BALANCE SHEET - continuation sheet
- -------------------------------------------------------------------------------
BOOK VALUE AT END OF BOOK VALUE ON
ASSETS CURRENT REPORTING MONTH PETITION DATE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
OTHER CURRENT ASSETS
- -------------------------------------------------------------------------------
Accrued Investment Income -- 3,861
- -------------------------------------------------------------------------------
TOTAL OTHER CURRENT ASSETS $ -- $ 3,861
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- -------------------------------------------------------------------------------
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OTHER ASSETS
- -------------------------------------------------------------------------------
Prepaid Deposits 19,622 19,622
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Investment in Subsidiaries 96,047,700 215,156,938
- -------------------------------------------------------------------------------
Miscellaneous Other Assets 1,530,288 4,959,316
- -------------------------------------------------------------------------------
TOTAL OTHER ASSETS $ 97,597,610 $ 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 889,421 1,299,727
- -------------------------------------------------------------------------------
Interest Payable 2,276,323 2,276,323
- -------------------------------------------------------------------------------
Due to Affiliates 94,400,034 94,479,224
- -------------------------------------------------------------------------------
Other Liabilities 118,840,781 118,840,781
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TOTAL UNSECURED DEBTS (PRE-PETITION) $ 216,406,559 $ 216,896,055
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
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ADJUSTMENT TO OWNER EQUITY
- -------------------------------------------------------------------------------
Deferred Compensation (146,946) (1,125,099)
- -------------------------------------------------------------------------------
Equity in Subsidiary (43,817,066) (18,810,663)
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TOTAL ADJUSTMENT TO OWNER EQUITY $ (43,964,013) $ (19,935,762)
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FORM MOR-3
Trenwick Group Ltd.
Exhibit 99.1
Trenwick Group Ltd. Case No. 03-12636 (MFW)
Debtor Reporting Period: September 2004
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
- -------------------------------------------------------------------------------------- ------------
Accounts Receivable Reconciliation Amount
- -------------------------------------------------------------------------------------- ------------
Total Accounts Receivable at the beginning of the reporting period $ 225,014.00
- -------------------------------------------------------------------------------------- ------------
+ Amounts billed during the peiod --
- -------------------------------------------------------------------------------------- ------------
- - Amounts collected during the peiod --
- -------------------------------------------------------------------------------------- ------------
Total Accounts Receivable at the end of the reporting period 225,014.00
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Accounts Receivable Aging Amount
- -------------------------------------------------------------------------------------- ------------
0 - 30 days old --
- -------------------------------------------------------------------------------------- ------------
31 - 60 days old --
- -------------------------------------------------------------------------------------- ------------
61 - 90 days old
- -------------------------------------------------------------------------------------- ------------
91 + days old 9,667,533.00
- -------------------------------------------------------------------------------------- ------------
Total Accounts Receivable 9,667,533.00
- -------------------------------------------------------------------------------------- ------------
Amount considered uncollectible (Bad Debt) (9,442,519.00)
- -------------------------------------------------------------------------------------- -------------
Accounts Receivable (Net) 225,014.00
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DEBTOR QUESTIONNAIRE
- -------------------------------------------------------------------------------------- -------------
Must be completed each month Yes No
- -------------------------------------------------------------------------------------- -------------
1. Have any assets been sold or transferred outside the normal course of business
this reporting period? If yes, provide an explanation below. X
- -------------------------------------------------------------------------------------- -------------
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
- -------------------------------------------------------------------------------------- -------------
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)