UNITED STATES BANKRUPTCY COURT __________ DISTRICT OF ___________

EX-2.4 4 ex2-4.htm MONTHLY OPERATING REPORT

 

 

UNITED STATES BANKRUPTCY COURT
__________ DISTRICT OF ___________

 

In re __Franklin Credit Holding Corporation__________________   Case No. ____12-24411_____________________
 Reporting Period: Jun-12

 

 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.

 

    Document Explanation Affidavit/Supplement Attached
REQUIRED DOCUMENTS Form No. Attached Attached
Schedule of Cash Receipts and Disbursements  MOR-1  Y    
Bank Reconciliation (or copies of debtor’s bank reconciliations)  MOR-1a  Y    
Schedule of Professional Fees Paid  MOR-1b  Y    
Copies of bank statements    Y    
Cash disbursements journals    Y    
Statement of Operations  MOR-2  Y    
Balance Sheet  MOR-3  Y    
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  n/a    
Debtor Questionnaire  MOR-5  Y    

 

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/ Kimberley Shaw   July 17, 2012
Signature of Authorized Individual*   Date
    
Kimberley Shaw   SVP of Finance and Controller
Printed Name of Authorized Individual   Title 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.

 

 
 

 

In re____FRANKLIN CREDIT HOLDING CORPORATION_______ Case No. ____12-24411________________
                                        Debtor Reporting Period: ____JUNE 30, 2012______

 

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 CURRENT MONTH   CUMULATIVE FILING TO DATE
  OPER. PAYROLL TAX OTHER   ACTUAL PROJECTED   ACTUAL PROJECTED
CASH BEGINNING  OF MONTH 55373                   
                     
RECEIPTS                    
CASH  SALES                    
ACCOUNTS RECEIVABLE                    
LOANS AND ADVANCES                    
SALE  OF  ASSETS                    
OTHER  (ATTACH  LIST)                    
TRANSFERS  (FROM  DIP ACCTS)                    
                     
    TOTAL  RECEIPTS                    
                     
DISBURSEMENTS                    
NET PAYROLL                    
PAYROLL TAXES                    
SALES, USE, & OTHER TAXES                    
INVENTORY PURCHASES                    
SECURED/ RENTAL/ LEASES                    
INSURANCE                    
ADMINISTRATIVE 155                   
SELLING                    
OTHER  (ATTACH  LIST)                    
                     
OWNER DRAW *                    
TRANSFERS (TO DIP ACCTS)                    
                     
PROFESSIONAL FEES                    
U.S. TRUSTEE  QUARTERLY FEES                    
COURT COSTS                    
TOTAL DISBURSEMENTS 155                   
                     
NET CASH FLOW                    
(RECEIPTS LESS DISBURSEMENTS)                    
                     
CASH - END OF MONTH 55218                   

 

* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

 

THE FOLLOWING SECTION MUST BE COMPLETED

 

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS  155 
LESS:  TRANSFERS TO DEBTOR IN POSSESSION  ACCOUNTS  0 
PLUS:   ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES  (i.e. from escrow accounts)  0 
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES  155 

 

 
 

 

In re____Franklin Credit Holding Corporation________________   Case No. _____12-24411____________________
Debtor   Reporting Period:___June 30, 2012____________

 

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.

 

    Operating Payroll Tax Other
    #   #   #   #  
BALANCE PER BOOKS   55217               
                   
BANK BALANCE   55217               
(+) DEPOSITS IN TRANSIT (ATTACH LIST)                  
(-)  OUTSTANDING CHECKS (ATTACH LIST)                  
OTHER  (ATTACH EXPLANATION)                  
ADJUSTED BANK BALANCE *                  
* Adjusted bank balance must equal balance per books                  
                   
DEPOSITS IN TRANSIT   Date Amount Date Amount Date Amount Date Amount
                   
                   
                   
                   
                   
                   
                   
CHECKS OUTSTANDING   Ck. # Amount Ch. # Amount Ck. # Amount Ck. # Amount
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
OTHER                   
                   
                   
                   
                   
                   
                   

 

 
 

 

In re____FRANKLIN CREDIT HOLDING CORPORATION_________  Case No. __12-24411__________________
                                  Debtor  Reporting Period:____JUNE 2012________

 

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

This schedule is to include all retained professional payments from case inception to current month.

 

Payee Period Covered Amount Approved   Check  Amount Paid Year-To-Date
Payor Number Date Fees Expenses Fees Expenses
                   
                   
     NONE              
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   
                   

 

 
 

 

In re________June  30, 2012_______________________  Case No._______12-24411___________________
                                   Debtor  Reporting Period.:____June 30, 2012____________

  

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.

 

      Cumulative
REVENUES  Month  Filing to Date
Gross Revenues  $   $ 
Less:  Returns and Allowances          
Net Revenue  $   $ 
COST OF GOODS SOLD          
Beginning Inventory   0    0 
Add: Purchases   0    0 
Add: Cost of Labor   0    0 
Add: Other Costs (attach schedule)   0    0 
Less: Ending Inventory   0    0 
Cost of Goods Sold   0    0 
Gross Profit   0    0 
OPERATING EXPENSES          
Advertising          
Auto and Truck Expense          
Bad Debts          
Contributions          
Employee Benefits Programs          
Insider Compensation*          
Insurance   348      
Management Fees/Bonuses          
Office Expense          
Pension & Profit-Sharing Plans          
Repairs and Maintenance          
Rent and Lease Expense          
Salaries/Commissions/Fees          
Professional fees   -      
Supplies          
Taxes - Payroll          
Taxes - Real Estate          
Taxes - Other          
Travel and Entertainment          
Utilities          
Other (attach schedule)          
Total Operating Expenses Before Depreciation   348      
Depreciation/Depletion/Amortization          
Net Profit (Loss) Before Other Income & Expenses          
OTHER INCOME AND EXPENSES          
Other Income (attach schedule)          
Interest Expense          
Other Expense (attach schedule)          
Net Profit (Loss) Before Reorganization Items          
REORGANIZATION ITEMS          
Professional Fees   -      
U. S. Trustee Quarterly Fees   325      
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)   -      
Gain (Loss) from Sale of Equipment   -      
Other Reorganization Expenses (attach schedule)          
Total Reorganization Expenses   325      
Income Taxes   -      
Net Profit (Loss)   (673)  $ 

 

* “Insider” is defined in 11 U.S.C. Section 101(31).

 

 
 

 

In re___Franklin Credit Holding Corporation_________________  Case No.______12-24411____________________
                       Debtor  Reporting Period:__June 30, 2012______________

 

STATEMENT OF OPERATIONS - continuation sheet

 

    Cumulative
BREAKDOWN OF “OTHER” CATEGORY   Month Filing to Date
     
Other Costs    
     
    N/A  
     
     
     
Other Operational Expenses    
    N/A  
     
     
     
     
Other Income    
    N/A  
     
     
     
     
Other Expenses    
    N/A  
     
     
     
     
Other Reorganization Expenses    
    N/A  
     
     
     
     
     
     
     
     

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:

Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item.

 

 
 

 

In re __franklin Credit Holding Corporation___________________ Case No. ___12-24411-DHS___________________
Debtor   Reporting Period:____JUNE 2012______________

 

BALANCE SHEET

 

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.

 

ASSETS  BOOK VALUE AT
END OF CURRENT
REPORTING MONTH		  BOOK VALUE ON
PETITION DATE
CURRENT ASSETS          
Unrestricted Cash and Equivalents     55,217    55,991 
Restricted Cash and Cash Equivalents (see continuation sheet)          
Accounts Receivable (Net)          
Notes Receivable          
Inventories          
Prepaid Expenses          
Professional Retainers     75,000    75,000 
Other Current Assets (attach schedule)          
TOTAL CURRENT ASSETS     130,217    130,991 
PROPERTY AND EQUIPMENT          
Real Property and Improvements          
Machinery and Equipment          
Furniture, Fixtures and Office Equipment          
Leasehold Improvements          
Vehicles          
Less Accumulated Depreciation          
TOTAL PROPERTY & EQUIPMENT  $    $ 
OTHER ASSETS          
Loans to Insiders*          
Other Assets (attach schedule)          
TOTAL OTHER ASSETS          
           
TOTAL ASSETS     130,217    130,991 

 

LIABILITIES AND OWNER EQUITY  BOOK VALUE AT
END OF CURRENT
REPORTING MONTH		  BOOK VALUE ON
PETITION DATE
LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)      
Accounts Payable          
Taxes Payable (refer to FORM MOR-4)          
Wages Payable          
Notes Payable          
Rent / Leases - Building/Equipment          
Secured Debt / Adequate Protection Payments          
Professional Fees          
Amounts Due to Insiders*          
Other Postpetition Liabilities (attach schedule)          
TOTAL POSTPETITION LIABILITIES   $    $ 
LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)          
Secured Debt   825,300,000    825,300,000 
Priority Debt   4,000    4,000 
Unsecured Debt   1,963,000    1,963,000 
TOTAL PRE-PETITION LIABILITIES   827,267,000    827,267,000 
           
TOTAL LIABILITIES   $    $ 
OWNER EQUITY          
Capital Stock          
Additional Paid-In Capital          
Partners’ Capital Account          
Owner’s Equity Account          
Retained Earnings - Pre-Petition          
Retained Earnings - Postpetition          
Adjustments to Owner Equity (attach schedule)          
Postpetition Contributions (Distributions) (Draws) (attach schedule)          
NET OWNER EQUITY   $    $ 
           
TOTAL LIABILITIES AND OWNERS’ EQUITY   827,267,000    827,267,000 

 

* “Insider” is defined in 11 U.S.C. Section 101(31).

 

 
 

  

In re  Case No. _______________________________________
Debtor_________________________________  Reporting Period:_________________________________

 

BALANCE SHEET - continuation sheet

  

ASSETS BOOK VALUE AT
END OF CURRENT
REPORTING MONTH		 BOOK VALUE ON PETITION DATE
Other Current Assets    
       
       
       
       
       
       
Other Assets    
       
       
       
       
       
       
LIABILITIES AND OWNER EQUITY BOOK VALUE AT END OF CURRENT REPORTING MONTH BOOK VALUE ON PETITION DATE
Other Postpetition Liabilities    
       
       
       
       
       
       
Adjustments to Owner Equity    
       
       
       
       
       
       
Postpetition Contributions (Distributions) (Draws)    
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       

 

Restricted Cash is cash that is restricted for a specific use and not available to fund operations. Typically, restricted cash is segregated into a separate account, such as an escrow account.

 

 
 

 

In re__Franklin Credit Holding Corporation __________________   Case No. ___12-24411________________________
                             Debtor   Reporting Period:___June 2012__________________

  

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            
FICA-Employee            
FICA-Employer            
Unemployment   NONE        
Income            
Other:_________________            
   Total Federal Taxes            
State and Local            
Withholding            
Sales            
Excise            
Unemployment            
Real Property            
Personal Property            
Other:_________________            
   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            
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            

 

Explain how and when the Debtor intends to pay any past-due postpetition debts.

 

* “Insider” is defined in 11 U.S.C. Section 101(31).

 

 
 

 

In re__FRANKLIN CREDIT HOLDING CORPORATION____________________________
                                   Debtor

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

  

Accounts Receivable Reconciliation Amount
Total Accounts Receivable at the beginning of the reporting period   N/A
+ Amounts billed during the period   N/A
- Amounts collected during the period   N/A
Total Accounts Receivable at the end of the reporting period   N/A
     
Accounts Receivable Aging Amount
0 - 30 days old   N/A
31 - 60 days old   N/A
61 - 90 days old   N/A
91+ days old   N/A
Total Accounts Receivable   N/A
Amount considered uncollectible (Bad Debt)   N/A
Accounts Receivable (Net)   N/A

  

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 an explanation below.   X  
3.  Have all postpetition tax returns been timely filed?  If no, provide an explanation below.   X  1
4.  Are workers compensation, general liability and other necessary insurance coverages in effect?  If no, provide an explanation below. X     
5.  Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3. X   2

   

1.All 2011 tax returns will be filed in August 2012.
2.Only the debtor in possession account was opened during the month.