-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BTzrCuWizq0Q2YmoApeaOTENXuqqK7h2LzidFcf/oj9Gm5CXCv8PRN1ACFfzTXR9 7DBazoz3pKsE3ZdN46bTlg== 0000950130-99-003140.txt : 19990519 0000950130-99-003140.hdr.sgml : 19990519 ACCESSION NUMBER: 0000950130-99-003140 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990514 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990518 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SMARTALK TELESERVICES INC CENTRAL INDEX KEY: 0001018730 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATION SERVICES, NEC [4899] IRS NUMBER: 954502740 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-21579 FILM NUMBER: 99629932 BUSINESS ADDRESS: STREET 1: 5080 TUTTLE CROSSING BLVD STREET 2: SUITE 500 CITY: DUBLIN STATE: OH ZIP: 43016-3566 BUSINESS PHONE: 6147898600 MAIL ADDRESS: STREET 1: 5080 TUTTLE CROSSING BLVD STREET 2: SUITE 500 CITY: DUBLIN STATE: OH ZIP: 43016-3566 8-K 1 FORM 8-K 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) May 17, 1999 -------------------------------- SMARTALK TELESERVICES, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) California 0-21579 95-4502740 -------------- ----------- -------------- (State or Other Jurisdiction (Commission File (IRS Employer of Incorporation) Number) Identification No.) 5080 Tuttle Crossing Boulevard, Dublin, Ohio 43016-3566 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) The Company's telephone number, including area code (614) 789-8600 ----------------------------- No change - -------------------------------------------------------------------------------- (Former Name or Address, if Changed Since Last Report) ITEM 5. OTHER EVENTS As previously disclosed in a Current Report on Form 8-K, on January 19, 1999, SmarTalk TeleServices, Inc. and certain of its non-foreign subsidiaries (collectively, the "Company") filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") (Cases Nos. 99-108 to 99-127). Pursuant to Bankruptcy Rule 2015 and the United States Trustee's Operating Guidelines and Reporting Requirements for Chapter 11 cases, on May 17, 1999 the Company filed its Monthly Operating Report for the period of March 1, 1999 through March 31, 1999 (the "March MOR") with the Office of the United States Trustee - Region 3 and the Bankruptcy Court. A copy of the March MOR is attached hereto as Exhibit 99.1, and incorporated herein by reference./1/ ITEM 7. EXHIBITS Exhibit No. Description - ---------- ----------- 99.1 Monthly Operating Report for the period of March 1, 1999 through March 31, 1999 The Exhibit to this Report contains forward-looking statements. The words, "believe," "expect," and "anticipate" and similar expressions identify such forward-looking statements. These forward-looking statements reflect the Company's views with respect to future events and financial performance. In particular, SmarTalk has not prepared any formal liquidation analysis based on the assets of the bankruptcy estate, and any such analysis would be premature at this time. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise (other than updates that are consistent with the Debtor's obligations to file monthly operating reports). - ------------------- /1/ The attachments and exhibits referenced in the March MOR are not attached as part of Exhibit 99.1, but are available at the Office of the United States Trustee and the Bankruptcy Court. In addition, the Company agrees that it will furnish a copy of any omitted schedule or similar attachment to the Commission upon its request. (Page 2 of 4 Pages} SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SMARTALK TELESERVICES, INC. Date: May 17, 1999 By: /s/ Thaddeus Bereday ------------------------------------------- Name: Thaddeus Bereday Title: Vice President and General Counsel (Page 3 of 4 Pages) EXHIBIT INDEX ------------- Exhibit No. Description - ---------- ----------- 99.1 Monthly Operating Report for the period of March 1, 1999 through March 31, 1999 (Page 4 of 4 Pages) EX-99.1 2 SMARTALK TELESERVICES - MONTHLY OPERATING REPORT - --------------------------------------------- DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS -1 - --------------------------------------------- - --------------------------------------------- CASE NUMBERS: 99-108 to 99-127 (MFW) - --------------------------------------------- - --------------------------------------------- JUDGE: Honorable Mary F. Walrath - --------------------------------------------- OFFICE OF THE UNITED STATES TRUSTEE - REGION 3 CONSOLIDATED MONTHLY OPERATING REPORT FOR THE MONTH ENDING: March 31, 1999 FOR THE PERIOD: March 1, 1999 through March 31, 1999
=============================================================================================== Document Previously Explanation Required Attachments Attached Submitted Attached 1. Tax Receipts (X) ( ) ( ) 2. Bank Statements (X) ( ) ( ) 3. Most recently filed Income Tax ( ) (X) ( ) Return 4. Most recent Annual Financial ( ) (X) ( ) Statements prepared by accountant
NOTE: THIS CONSOLIDATED MONTHLY OPERATING REPORT IS FILED ON A CONSOLIDATED BASIS FOR EACH OF THE 20 ENTITIES THAT IS A DEBTOR-IN-POSSESSION IN THE ABOVE CAPTIONED CASES. INFORMATION, WHERE INDICATED, IS PROVIDED HEREIN WITH RESPECT TO NON-DEBTOR SUBSIDIARIES. THIS INFORMATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY ON A BASIS CONSISTENT WITH THE DEBTORS PRIOR PUBLIC FINANCIAL REPORTING. IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-9) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE. RESPONSIBLE PARTY:
/s/ Thaddeus Bereday Vice President & General Counsel - ------------------------------------------------------- -------------------------------- ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE Thaddeus Bereday 5/13/99 - ------------------------------------------------------- -------------------------------- PRINTED NAME OF RESPONSIBLE PARTY DATE PREPARER: Former Assistant Controller, /s/ Lois A. Mannon SmarTalk Teleservices, Inc. - ------------------------------------------------------- -------------------------------- ORIGINAL SIGNATURE OF PREPARER TITLE Lois Mannon 5/13/99 - ------------------------------------------------------- -------------------------------- PRINTED NAME OF PREPARER DATE Pursuant to an agreement with the office of the United States Trustee, this report is to be filed no later than the 45th day of the month following the end of the month covered by the report. - -----------------------------------------------------------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 2 - ---------------------------------------------- - ---------------------------------------------- CASE NUMBERS: 99-108 to 99-127 (MFW) - ---------------------------------------------- FIRST QUARTER - --------------------------------------------- ----- COMPARATIVE BALANCE SHEET - ---------------------------------------------
MONTH MONTH MONTH ------------------------------------------- - --------------------------------------------- ASSETS - ---------------------------------------------------------------------------------------- UNRESTRICTED CASH - ---------------------------------------------------------------------------------------- RESTRICTED CASH SEE ATTACHED ADDENDUM TO - ---------------------------------------------------------------------------------------- 1. TOTAL CASH MONTHLY OPERATING REPORT - ---------------------------------------------------------------------------------------- 2. ACCOUNTS RECEIVABLE (NET) - ---------------------------------------------------------------------------------------- 3. INVENTORY - ---------------------------------------------------------------------------------------- 4. NOTES RECEIVABLE - ---------------------------------------------------------------------------------------- 5. PREPAID EXPENSES - ---------------------------------------------------------------------------------------- 6. OTHER (ATTACH LIST) - ---------------------------------------------------------------------------------------- 7. TOTAL CURRENT ASSETS - ---------------------------------------------------------------------------------------- 8. PROPERTY, PLANT & EQUIPMENT - ---------------------------------------------------------------------------------------- 9. LESS: ACCUMULATED DEPRECIATION / DEPLETION - ---------------------------------------------------------------------------------------- 10. PROPERTY, PLANT & EQUIPMENT - ---------------------------------------------------------------------------------------- 11. DUE FROM AFFILIATES & INSIDERS - ---------------------------------------------------------------------------------------- AMORTIZATION (ATTACH LIST) - ---------------------------------------------------------------------------------------- 13. OTHER (ATTACH LIST) - ---------------------------------------------------------------------------------------- 14. TOTAL ASSETS - ---------------------------------------------------------------------------------------- POSTPETITION LIABILITIES - ---------------------------------------------------------------------------------------- 15. ACCOUNTS PAYABLE - ---------------------------------------------------------------------------------------- 16. TAXES PAYABLE - ---------------------------------------------------------------------------------------- 17. NOTES PAYABLE - ---------------------------------------------------------------------------------------- 18. PROFESSIONAL FEES - ---------------------------------------------------------------------------------------- 19. SECURED DEBT - ---------------------------------------------------------------------------------------- 20. DUE TO AFFILIATES & INSIDERS - ---------------------------------------------------------------------------------------- 21. OTHER (ATTACH LIST) - ---------------------------------------------------------------------------------------- 22. TOTAL POSTPETITION LIABILITIES - ---------------------------------------------------------------------------------------- PREPETITION LIABILITIES - ---------------------------------------------------------------------------------------- 23. SECURED DEBT - ---------------------------------------------------------------------------------------- 24. PRIORITY DEBT - ---------------------------------------------------------------------------------------- 25. UNSECURED DEBT - ---------------------------------------------------------------------------------------- 26. OTHER (ATTACH LIST) - ---------------------------------------------------------------------------------------- 27. TOTAL PREPETITION LIABILITIES - ---------------------------------------------------------------------------------------- 28. TOTAL LIABILITIES - ---------------------------------------------------------------------------------------- EQUITY - ---------------------------------------------------------------------------------------- 29. PREPETITION OWNERS' EQUITY - ---------------------------------------------------------------------------------------- 30. POSTPETITION CUMULATIVE PROFIT OR (LOSS) - ---------------------------------------------------------------------------------------- DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION) - ---------------------------------------------------------------------------------------- 31. TOTAL EQUITY - ---------------------------------------------------------------------------------------- 32. TOTAL LIABILITIES & OWNERS' EQUITY - ---------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------
SMARTALK TELESERVICES, INC. AND SUBSIDIARIES DEBTORS-IN-POSSESSION ADDENDUM TO MONTHLY OPERATING REPORT For the Period March 1 - March 31, 1999 On March 31, 1999 (the "Closing Date"), pursuant to the terms of an Asset Purchase Agreement, dated January 19, 1999 (as amended, the "Purchase Agreement"), among SmarTalk TeleServices, Inc. ("SMTK"), and its Debtor and Non- Debtor subsidiaries (collectively, the "Company") and AT&T Corp. ("AT&T"), AT&T purchased substantially all the assets of the Company for aggregate consideration of approximately $145 million consisting of approximately $105 million in cash and repayment of indebtedness and a $40 million promissory note issued by AT&T in favor of SMTK. The purchase price is subject to downward adjustments pursuant to a post-closing purchase price adjustment formula and in the event of claims by AT&T. Under the terms of the Purchase Agreement, AT&T is required to prepare and deliver Closing Statements and a Purchase Price Adjustment Statement (in each case, as defined in the Purchase Agreement) to SMTK on or before May 15, 1999. The Closing Statements and the Purchase Price Adjustment Statement are subject to a 30-day review period by the Company and its representatives and become final and binding at the end of the 30-day review period, or if SMTK notifies AT&T of any disagreement upon the resolution of such disagreement pursuant to the procedures set forth in the Purchase Agreement (including the submission of any disagreements to arbitration by a mutually acceptable public accounting firm with nationally recognized auditing experience). The Debtors intend to work closely with the Official Committee of Unsecured Creditors and their legal and financial advisors (collectively, the "Committee") to complete the review of the Closing Statements and the Purchase Price Adjustment Statement. As of the date of this consolidated monthly operating report, and although requested by SMTK, AT&T has not delivered the Closing Statements and the Purchase Price Adjustment Statement to the Debtors. Accordingly, certain financial information is omitted from the consolidated monthly operating report. When the March balance sheet and income statement and the Closing Statements and Purchase Price Adjustment Statement are finalized, the information contained therein will be submitted promptly to the Office of the United States Trustee and the United States Bankruptcy Court for the District of Delaware and made available to the Committee. Because AT&T has not yet delivered the Closing Statements and the Purchase Price Adjustment Statement as described above, and because a significant portion of the Company's books and records were sold to AT&T, the Debtors do not possess the complete financial information necessary to determine the final adjusted purchase price. However, the following is a preliminary estimate of the anticipated loss resulting from the sale of substantially all of the Company's assets to AT&T. Actual final results could differ materially from those presented. Non-Debtor subsidiary information is included in this estimate.
Aggregate consideration received (subject to adjustment) $147,628,290 (1) Estimated book value of assets sold, net of liabilities assumed, (271,820,248) and transaction costs ------------ Estimated loss on sale of assets ($124,191,958) =============
- ----------------------
(1) Aggregate consideration: Cash received and indebtedness paid $107,628,290 AT&T Promissory Note (subject to adjustment) 40,000,000 ------------ Total aggregate consideration $147,628,290 ============
The foregoing estimate represents the Company's views with respect to future events and financial performance. These estimates are subject to risks and uncertainties that could cause actual results and performance to differ from such statements (including the process set forth in the Purchase Agreement for finalizing the Closing Statements and the Purchase Price Adjustment Statement). Readers are cautioned not to place reliance on such estimates and the Company undertakes no obligation to update such estimates, whether as a result of new information, future events or otherwise (other than updates that are consistent with the Debtor's obligation to file monthly operating reports).
- ------------------------------------------------------------------------------------------------ - -------------------------------------------------- DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 3 - -------------------------------------------------- - -------------------------------------------------- CASE NUMBERS: 99-108 to 99-127(MFW) FIRST QUARTER - -------------------------------------------------- - -------------------------------------------------- INCOME STATEMENT - ------------------------------------------------------------------------------------------ MONTH MONTH MONTH QUARTER --------------------------------- REVENUES TOTAL - ------------------------------------------------------------------------------------------ 1. GROSS REVENUES - ------------------------------------------------------------------------------------------ 2. LESS: RETURNS & DISCOUNTS SEE ATTACHED ADDENDUM TO - ------------------------------------------------------------------------------------------ 3. NET REVENUE MONTHLY OPERATING REPORT - ------------------------------------------------------------------------------------------ COST OF GOODS SOLD - ------------------------------------------------------------------------------------------ 4. BEGINNING INVENTORY - ------------------------------------------------------------------------------------------ 5. ADD: PURCHASES - ------------------------------------------------------------------------------------------ 6. LESS: ENDING INVENTORY - ------------------------------------------------------------------------------------------ 7. TOTAL COST OF GOODS SOLD - ------------------------------------------------------------------------------------------ 8. GROSS PROFIT - ------------------------------------------------------------------------------------------ OPERATING EXPENSES - ------------------------------------------------------------------------------------------ 9. OFFICER/INSIDER COMPENSATION - ------------------------------------------------------------------------------------------ 10. DIRECT LABOR/SALARIES - ------------------------------------------------------------------------------------------ 11. PAYROLL TAXES - ------------------------------------------------------------------------------------------ 12. RENT & LEASE EXPENSE - ------------------------------------------------------------------------------------------ 13. INSURANCE - ------------------------------------------------------------------------------------------ 14. DEPRECIATION/DEPLETION/AMORTIZATION - ------------------------------------------------------------------------------------------ 15. GENERAL & ADMINISTRATIVE - ------------------------------------------------------------------------------------------ 16. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------------------ 17. TOTAL OPERATING EXPENSES - ------------------------------------------------------------------------------------------ 18. INCOME BEFORE NON-OPERATING INCOME & EXPENSE - ------------------------------------------------------------------------------------------ OTHER INCOME & EXPENSES - ------------------------------------------------------------------------------------------ 19. NON-OPERATING INCOME (ATT. LIST) - ------------------------------------------------------------------------------------------ 20. NON-OPERATING EXPENSE (ATT. LIST) - ------------------------------------------------------------------------------------------ 21. INTEREST EXPENSE - ------------------------------------------------------------------------------------------ 22. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------------------ 23. NET OTHER INCOME & EXPENSES - ------------------------------------------------------------------------------------------ REORGANIZATION EXPENSES - ------------------------------------------------------------------------------------------ 24. PROFESSIONAL FEES - ------------------------------------------------------------------------------------------ 25. U.S. TRUSTEE FEES - ------------------------------------------------------------------------------------------ 26. OTHER (ATTACH LIST) - ------------------------------------------------------------------------------------------ 27. TOTAL REORGANIZATION EXPENSES - ------------------------------------------------------------------------------------------ 28. INCOME TAX - ------------------------------------------------------------------------------------------ 29. NET PROFIT (LOSS) - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------
SMARTALK TELESERVICES, INC. AND SUBSIDIARIES DEBTORS-IN-POSSESSION ADDENDUM TO MONTHLY OPERATING REPORT For the Period March 1 - March 31, 1999 On March 31, 1999 (the "Closing Date"), pursuant to the terms of an Asset Purchase Agreement, dated January 19, 1999 (as amended, the "Purchase Agreement"), among SmarTalk TeleServices, Inc. ("SMTK"), and its Debtor and Non- Debtor subsidiaries (collectively, the "Company") and AT&T Corp. ("AT&T"), AT&T purchased substantially all the assets of the Company for aggregate consideration of approximately $145 million consisting of approximately $105 million in cash and repayment of indebtedness and a $40 million promissory note issued by AT&T in favor of SMTK. The purchase price is subject to downward adjustments pursuant to a post-closing purchase price adjustment formula and in the event of claims by AT&T. Under the terms of the Purchase Agreement, AT&T is required to prepare and deliver Closing Statements and a Purchase Price Adjustment Statement (in each case, as defined in the Purchase Agreement) to SMTK on or before May 15, 1999. The Closing Statements and the Purchase Price Adjustment Statement are subject to a 30-day review period by the Company and its representatives and become final and binding at the end of the 30-day review period, or if SMTK notifies AT&T of any disagreement upon the resolution of such disagreement pursuant to the procedures set forth in the Purchase Agreement (including the submission of any disagreements to arbitration by a mutually acceptable public accounting firm with nationally recognized auditing experience). The Debtors intend to work closely with the Official Committee of Unsecured Creditors and their legal and financial advisors (collectively, the "Committee") to complete the review of the Closing Statements and the Purchase Price Adjustment Statement. As of the date of this consolidated monthly operating report, and although requested by SMTK, AT&T has not delivered the Closing Statements and the Purchase Price Adjustment Statement to the Debtors. Accordingly, certain financial information is omitted from the consolidated monthly operating report. When the March balance sheet and income statement and the Closing Statements and Purchase Price Adjustment Statement are finalized, the information contained therein will be submitted promptly to the Office of the United States Trustee and the United States Bankruptcy Court for the District of Delaware and made available to the Committee. Because AT&T has not yet delivered the Closing Statements and the Purchase Price Adjustment Statement as described above, and because a significant portion of the Company's books and records were sold to AT&T, the Debtors do not possess the complete financial information necessary to determine the final adjusted purchase price. However, the following is a preliminary estimate of the anticipated loss resulting from the sale of substantially all of the Company's assets to AT&T. Actual final results could differ materially from those presented. Non-Debtor subsidiary information is included in this estimate.
Aggregate consideration received (subject to adjustment) $147,628,290 (1) Estimated book value of assets sold, net of liabilities assumed, (271,820,248) and transaction costs ------------ Estimated loss on sale of assets ($124,191,958) =============
- -------------------
(1) Aggregate consideration: Cash received and indebtedness paid $107,628,290 AT&T Promissory Note (subject to adjustment) 40,000,000 ------------ Total aggregate consideration $147,628,290 ============
The foregoing estimate represents the Company's views with respect to future events and financial performance. These estimates are subject to risks and uncertainties that could cause actual results and performance to differ from such statements (including the process set forth in the Purchase Agreement for finalizing the Closing Statements and the Purchase Price Adjustment Statement). Readers are cautioned not to place reliance on such estimates and the Company undertakes no obligation to update such estimates, whether as a result of new information, future events or otherwise (other than updates that are consistent with the Debtor's obligation to file monthly operating reports).
- ------------------------------------------------------------------------------------------------------------------------------------ - -------------------------------------------------------------------------------- ACCRUAL BASIS - 4 DEBTORS: WORLDWIDE DIRECT, INC., et al. FIRST QUARTER - -------------------------------------------------------------------------------- ----- Bank: Wells Fargo - -------------------------------------------------------------------------------- ------------- CASE NUMBERS: 99-108 to 99-127 (MFW) Account no.: 4038-145157 - -------------------------------------------------------------------------------- ------------- Account type: Operating -------------
NOTE: ALL CASH DISBURSEMENTS, EXCLUDING INTER-ACCOUNT TRANSFERS, ARE DISBURSED OUT OF THE WELLS FARGO OPERATING ACCOUNT #4038-145157 FROM SMARTALK TELESERVICES, INC. CASE NUMBER 99-109.
- ------------------------------------------------------------------------------------------------------------------------------------ CASH RECEIPTS AND MONTH DISBURSEMENTS ------------------------------------------------------------- 3/1/99 - 3/31/99 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ 1. CASH - BEGINNING OF MONTH $ (103,842) - ------------------------------------------------------------------------------------------------------------------------------------ RECEIPTS FROM OPERATIONS - ------------------------------------------------------------------------------------------------------------------------------------ 2. CASH SALES (FROM MERCHANT CARD RECHARGES) $ - - ------------------------------------------------------------------------------------------------------------------------------------ 3. COLLECTION OF ACCOUNTS RECEIVABLE $ 1,018,880 - ------------------------------------------------------------------------------------------------------------------------------------ 4. LOANS & ADVANCES $ - - ------------------------------------------------------------------------------------------------------------------------------------ 5. SALE OF ASSETS $ - - ------------------------------------------------------------------------------------------------------------------------------------ 6. OTHER: - ------------------------------------------------------------------------------------------------------------------------------------ LOCKBOX COLLECTIONS ON RECEIVABLES 3/01/99-3/31/99 $ 2,879,706 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSFERS IN FROM SWEEP ACCOUNT 3/01/99-3/31/99* $ 6,373,422 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSFERS IN FROM AT&T * DIP $ 6,300,000 - ------------------------------------------------------------------------------------------------------------------------------------ VENDING DEPOSIT RECEIPTS $ 12,075 - ------------------------------------------------------------------------------------------------------------------------------------ DIVIDEND INCOME RECEIPTS $ 9,168 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL OTHER $ 15,574,371 - ------------------------------------------------------------------------------------------------------------------------------------ 7. TOTAL RECEIPTS $ 16,593,251 - ------------------------------------------------------------------------------------------------------------------------------------ 8. TOTAL CASH AVAILABLE $ 16,489,409 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING DISBURSEMENTS - ------------------------------------------------------------------------------------------------------------------------------------ 1. CHECKS WRITTEN - 3/01/99-3/31/99 (SEE ATTACHED LIST) $ 1,835,375 - ------------------------------------------------------------------------------------------------------------------------------------ 3. WIRE TRANSFERS - 3/01/99-3/31/99 (SEE ATTACHED LIST) $ 8,312,516 - ------------------------------------------------------------------------------------------------------------------------------------ 5. OTHER: - ------------------------------------------------------------------------------------------------------------------------------------ CASH TRANSFERS OUT TO PAYROLL ACCOUNT 3/31/99-3/31/99 $ 1,115,474 - ------------------------------------------------------------------------------------------------------------------------------------ CASH TRANSFERS OUT - 3/01/99-3/31/99* $ 5,827,189 - ------------------------------------------------------------------------------------------------------------------------------------ A/R RETURNS ADJUSTMENT $ 628 - ------------------------------------------------------------------------------------------------------------------------------------ BANK CHARGES $ 1,695 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL OTHER $ 6,944,986 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISBURSEMENTS FROM BANK ACCOUNT $ 17,092,877 - ------------------------------------------------------------------------------------------------------------------------------------ ENDING ACCOUNT BALANCE $ (603,468) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ ADD: CASH BALANCES FROM NON-OPERATING ACCOUNTS $ 1,828,622 - ------------------------------------------------------------------------------------------------------------------------------------ SEE ACCRUAL BASIS - 6 - ------------------------------------------------------------------------------------------------------------------------------------ ADD: TOTAL NON-DEBTOR CASH BALANCES $ 444,187 - ------------------------------------------------------------------------------------------------------------------------------------ NON-DEBTOR SUBSIDIARIES (Provided for informational - ------------------------------------------------------------------------------------------------------------------------------------ purposes only on a basis consistent with Debtors' previous - ------------------------------------------------------------------------------------------------------------------------------------ public financial reporting) SEE ACCRUAL BASIS - 6 - ------------------------------------------------------------------------------------------------------------------------------------ END OF MONTH BALANCE (SHOULD EQUAL ACCRUAL BASIS - 6, LINE 13) $ 1,669,341 - ------------------------------------------------------------------------------------------------------------------------------------
* CASH TRANSFERS line items represent inter-account transfers to other SMTK accounts including overnight sweep accounts. - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- - ---------------------------------------- DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 5 CASE NUMBERS: 99-108 to 99-127 (MFW) - ---------------------------------------- - -------------------------------------------------------------------------------- MONTH MONTH MONTH ACCOUNTS RECEIVABLE AGING ---------------------------------------- March 31, 1999 - -------------------------------------------------------------------------------- 1. 0 - 30 days old $ 10,321,212 - -------------------------------------------------------------------------------- 2. 31 - 60 days old 5,155,449 - -------------------------------------------------------------------------------- 3. 61 - 90 days old 2,578,982 - -------------------------------------------------------------------------------- 4. 91 + days old 17,681,588 - -------------------------------------------------------------------------------- 5. TOTAL ACCOUNTS RECEIVABLE 35,737,231 - -------------------------------------------------------------------------------- 6. AMOUNT CONSIDERED UNCOLLECTIBLE 9,152,783 - -------------------------------------------------------------------------------- 7. ACCOUNTS RECEIVABLE (NET) $ 26,584,448 - --------------------------------------------------------------------------------
- ---------------------------------------- MONTH: March 31, 1999 AGING OF POSTPETITION ACCOUNTS --------------- PAYABLE - -------------------------------------------------------------------------------- 0-30 31-60 61-90 91+ DAYS DAYS DAYS DAYS TOTAL - -------------------------------------------------------------------------------- ACCOUNTS PAYABLE $ 412,038 $ 105,947 $ 8,253.00 $ - $ 526,238 - --------------------------------------------------------------------------------
- ---------------------------------------- MONTH: March 31, 1999 STATUS OF POSTPETITION TAXES --------------- - -------------------------------------------------------------------------------- BEGINNING AMOUNT ENDING TAX WITHHELD AND/ AMOUNT TAX DELINQUENT FEDERAL LIABILITY OR ACCRUED PAID LIABILITY TAXES - -------------------------------------------------------------------------------- 1. WITHHOLDING** $ 50,545 $ 140,916 $ 191,461 $ - $ - - -------------------------------------------------------------------------------- 2. FICA-EMPLOYEE** $ 23,513 $ 60,576 $ 84,089 $ - $ - - -------------------------------------------------------------------------------- 3. FICA-EMPLOYER** $ 23,513 $ 60,576 $ 84,089 $ - $ - - -------------------------------------------------------------------------------- 4. UNEMPLOYMENT $ 607 $ 702 $ 1,309 $ - $ - - -------------------------------------------------------------------------------- 5. INCOME $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------- 6. OTHER (ATTACH LIST) $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------- 7. TOTAL FEDERAL TAXES $ 98,178 $ 262,770 $ 360,948 $ - $ - - -------------------------------------------------------------------------------- STATE AND LOCAL - -------------------------------------------------------------------------------- 8. WITHHOLDING $ 16,750 $ 44,104 $ 60,854 $ - $ - - -------------------------------------------------------------------------------- 9. SALES $ 89,835 $ 233,270 $ 100,765 $ 222,340 $ - - -------------------------------------------------------------------------------- 10. EXCISE $ 251,194 $ 266,168 $ 251,194 $ 266,168 $ - - -------------------------------------------------------------------------------- 11. UNEMPLOYMENT $ 3,997 $ 6,305 $ 10,302 $ - $ - - -------------------------------------------------------------------------------- 12. REAL PROPERTY $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------- 13. PERSONAL PROPERTY $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------- 14. OTHER - STATE DISABILITY $ 77 $ 226 $ 303 $ - $ - - -------------------------------------------------------------------------------- 15. TOTAL STATE & LOCAL $ 361,853 $ 550,073 $ 423,418 $ 488,508 $ - - -------------------------------------------------------------------------------- 16. TOTAL TAXES $ 460,031 $ 812,843 $ 748,366 $ 488,508 $ - - --------------------------------------------------------------------------------
* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero. ** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment or deposit. NOTE: Withholdings are produced and remitted directly by Automatic Data Processing (ADP) a third party payroll processor. - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 6 - --------------------------------------------- - --------------------------------------------- CASE NUMBERS: 99-108 to 99-127 (MFW) - ---------------------------------------------
The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.
MONTH: March 31, 1999 - ----------------------------------------------------- ---------------- BANK RECONCILIATIONS Account # 1 Account # 2 Account # 3 - ------------------------------------------------------------------------------------------------------------------------ A. BANK - ------------------------------------------------------------------------------------------------------------------------ B. ACCOUNT NUMBER TOTAL - ------------------------------------------------------------------------------------------------------------------------ C. PURPOSE (TYPE) - ------------------------------------------------------------------------------------------------------------------------ 1. BALANCE PER BANK STATEMENT - ------------------------------------------------------------------------------------------------------------------------ 2. ADD: TOTAL DEPOSITS NOT CREDITED SEE ATTACHED BANK RECONCILIATIONS WITH - ------------------------------------------------------------------------------------------------------------------------ 3. SUBTRACT: OUTSTANDING CHECKS SUPPORTING BANK STATEMENTS AND G/L DETAIL - ------------------------------------------------------------------------------------------------------------------------ 4. OTHER RECONCILING ITEMS (ATTACH LIST) - ------------------------------------------------------------------------------------------------------------------------ 5. MONTH END BALANCE PER BOOKS - ------------------------------------------------------------------------------------------------------------------------ 6. NUMBER OF LAST CHECK WRITTEN - ------------------------------------------------------------------------------------------------------------------------ - ----------------------------------------------------- INVESTMENT ACCOUNTS - ------------------------------------------------------------------------------------------------------------------------ DATE OF TYPE OF PURCHASE CURRENT BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE - ------------------------------------------------------------------------------------------------------------------------ 7. - ------------------------------------------------------------------------------------------------------------------------ 8. - ------------------------------------------------------------------------------------------------------------------------ 9. - ------------------------------------------------------------------------------------------------------------------------ 10. - ------------------------------------------------------------------------------------------------------------------------ 11. TOTAL INVESTMENTS - ------------------------------------------------------------------------------------------------------------------------ - ----------------------------------------------------- CASH - ------------------------------------------------------------------------------------------------------------------------ 12. CURRENCY ON HAND - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ 13. TOTAL CASH - END OF MONTH - ------------------------------------------------------------------------------------------------------------------------ - -----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------- DEBTORS: WORLDWIDE DIRECT, INC. et al - ------------------------------------------------- - ------------------------------------------------- CASE NUMBERS: 99-108 to 99-127 (MFW) - ------------------------------------------------- The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary. MONTH: March 31, 1999 - -------------------------------------------------- --------------------------------------------------------------------- BANK RECONCILIATIONS Account #1 Account #2 Account #3 Account #4 Account #5 - ---------------------------------------------------------------------------------------------------------------------------------- A. BANK: Wells Fargo Wells Fargo Wells Fargo Wells Fargo Wells Fargo - ---------------------------------------------------------------------------------------------------------------------------------- B. ACCOUNT NUMBER: 4091-382796 4091-382853 4091-382812 4311-782163 4311-781165 - ---------------------------------------------------------------------------------------------------------------------------------- C. PURPOSE (TYPE): Payroll (SMTK) Payroll (Promo) Payroll (GTI) Payroll (Frntr) Payroll (CQ) - ---------------------------------------------------------------------------------------------------------------------------------- 1. BALANCE PER BANK ACCOUNT - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- 2. ADD: TOTAL DEPOSITS NOT CREDITED - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- 3. SUBTRACT: OUTSTANDING CHECKS (223,859) - (5,968) - (16,918) - ---------------------------------------------------------------------------------------------------------------------------------- 4. OTHER RECONCILING ITEMS (ATTACH LIST) - - - - - - ---------------------------------------------------------------------------------------------------------------------------------- 5. MONTH END BALANCE PER BOOKS (223,859) - (5,968) - (16,918) - ---------------------------------------------------------------------------------------------------------------------------------- 6. NUMBER OF LAST CHECK WRITTEN - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- MONTH: March 31, 1999 - -------------------------------------------------- --------------------------------------------------------------------- BANK RECONCILIATIONS Account #6 Account #7 Account #8 Account #9 - ---------------------------------------------------------------------------------------------------------------------------------- A. BANK: Wells Fargo Wells Fargo Wells Fargo Deutsche Bank - ---------------------------------------------------------------------------------------------------------------------------------- B. ACCOUNT NUMBER: 4091-382846 4091-382770 4311-781405 106534I00008 - ---------------------------------------------------------------------------------------------------------------------------------- C. PURPOSE (TYPE): Lockbox (Promo) Lockbox (GTI) Lockbox (Frntr) Deposit - ---------------------------------------------------------------------------------------------------------------------------------- 1. BALANCE PER BANK ACCOUNT - - - 500 - ---------------------------------------------------------------------------------------------------------------------------------- 2. ADD: TOTAL DEPOSITS NOT CREDITED - - - - - ---------------------------------------------------------------------------------------------------------------------------------- 3. SUBTRACT: OUTSTANDING CHECKS - - - - - ---------------------------------------------------------------------------------------------------------------------------------- 4. OTHER RECON????? ITEMS (ATTACH LIST) - - - - - ---------------------------------------------------------------------------------------------------------------------------------- 5. MONTH END BALANCE PER BOOKS - - - 500 - ---------------------------------------------------------------------------------------------------------------------------------- 6. NUMBER OF LAST CHECK WRITTEN - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- MONTH: March 31, 1999 - -------------------------------------------------- ----------------------- BANK RECONCILIATIONS Account #10 Account #11 A. BANK: Wells Fargo Wells Fargo - ------------------------------------------------------------------------------------ B. ACCOUNT NUMBER: 4801-914201 4038-145199 - ------------------------------------------------------------------------------------ C. PURPOSE (TYPE): Petty Cash Lockbox (Direct) - ------------------------------------------------------------------------------------ 1. BALANCE PER BANK ACCOUNT (358) 4,371 - ------------------------------------------------------------------------------------ 2. ADD: TOTAL DEPOSITS NOT CREDITED - - - ------------------------------------------------------------------------------------ 3. SUBTRACT: OUTSTANDING CHECKS - - - ------------------------------------------------------------------------------------ 4. OTHER RECONCILING ITEMS (ATTACH LIST) - - - ------------------------------------------------------------------------------------ 5. MONTH END BALANCE PER BOOKS (358) 4,371 - ------------------------------------------------------------------------------------ 6. NUMBER OF LAST CHECK WRITTEN - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- ACCRUAL BASIS - 6
- ----------------------------------------------------------------------------------------------------------------------------------- Account #12 Account #13 Account #14 Account #15 Account #16 Account #17 Account #18 Account #19 Account #20 - ----------------------------------------------------------------------------------------------------------------------------------- Wells Fargo Wells Fargo FNBO I- Bank Nations Bank Wells Fargo Wells Fargo Firstar Firstar - ----------------------------------------------------------------------------------------------------------------------------------- 4311-781082 4311-781124 384011304 301-0005659 0039 3394 3655 4091-382788 4091-390351 48646-8317 48887-2631 - ----------------------------------------------------------------------------------------------------------------------------------- Lockbox (CQ) PPD Lockbox CQ Merchant Card Vending Vending Lockbox (SMTK) Merchant Card Commissions Stock option - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - - 1,089,287 14,332 100,565 - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - - 1,089,287 14,332 100,565 - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------------------------------
NON-DEBTOR SUBSIDIARIES (Provided for informational purposes only on a basis consistent with Debtors' previous financial reporting) - ----------------------------------------------------------------------------------------------------------------------------------- Account #21 Account #22 Account #23 Account #24 Account #25 Account #26 - ----------------------------------------------------------------------------------------------------------------------------------- So. Cal. Bank Firstar Firstar Firstar Wells Fargo Wells Fargo Non-debtor Non-debtor - ----------------------------------------------------------------------------------------------------------------------------------- 4124294 48894-0438 98024-6078 48894-0446 4038-145157 4417-843075 Cash Cash TOTAL - ----------------------------------------------------------------------------------------------------------------------------------- Operating Operating Sweep Lockbox (SMTK) Operating Sweep (Direct) Canada UK - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - (84) 12 4,674 (603,468) 848,363 432,249 12,927 1,903,369 - ----------------------------------------------------------------------------------------------------------------------------------- - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - - - - - - (246,745) - ----------------------------------------------------------------------------------------------------------------------------------- - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - (84) 12 4,674 (603,468) 848,363 432,249 12,927 1,656,624 - ----------------------------------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC. et al ACCRUAL BASIS - 6 - ------------------------------------------- DEBTORS: WORLDWIDE DIRECT, INC. et al - ------------------------------------------- The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary. MONTH: March 31, 1999 ------------------ - --------------------------------------------------------------------------------
INVESTMENT ACCOUNTS - ---------------------------------------------------------- DATE OF TYPE OF PURCHASE CURRENT BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE - ---------------------------------------------------------------------------------------------------------------- 7. SUNTRUST COLLATERAL Acct #: 236000923 & 236000924 US T-Bills - - - ---------------------------------------------------------------------------------------------------------------- 8. US BANK CORPORATE TRUST - Escrow Acct #: 98501430 Jul-98 Treasury Obligations 12,043 12,717 - ---------------------------------------------------------------------------------------------------------------- 9. - ---------------------------------------------------------------------------------------------------------------- 10. - ---------------------------------------------------------------------------------------------------------------- 11. TOTAL INVESTMENTS 12,717 - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------- CASH - ---------------------------------------------------------------------------------------------------------------- 12. CURRENCY ON HAND - - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- 13. TOTAL CASH - END OF MONTH 1,669,341 - ----------------------------------------------------------------------------------------------------------------
- ------------------------------------------ DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 7 - ------------------------------------------ - ------------------------------------------ CASE NUMBERS: 99-108 to 99-127 (MFW) - ------------------------------------------ MONTH: March 31, 1999 -------------- - -------------------------------------------------------------------------------- PAYMENTS TO INSIDERS AND PROFESSIONALS - -------------------------------------------------------------------------------- OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.
- ---------------------------------------------------------------------------------------------------------------------------------- INSIDERS - ---------------------------------------------------------------------------------------------------------------------------------- CUMULATIVE TYPE OF AMOUNT UNPAID NAME POSITION PAYMENT PAID BALANCE - ---------------------------------------------------------------------------------------------------------------------------------- 1. Bereday, Thaddeus Vice President, General Counsel, Asst. Sec. Wages, Expenses $19,668 - ---------------------------------------------------------------------------------------------------------------------------------- 2. Borocz, Joe SmarTalk Senior Vice Pres. Of Marketing Wages, Expenses 18,278 - ---------------------------------------------------------------------------------------------------------------------------------- 3. Fess, Michelle President, SmarTalk UK Ltd. Wages 4,846 - ---------------------------------------------------------------------------------------------------------------------------------- 4. Grillo, Mark Relative of insider Victor Grillo, Jr & employee Wages 3,981 - ---------------------------------------------------------------------------------------------------------------------------------- 5. Grillo, Victor, Jr. President, SmarTalk Direct Wages, Expenses 24,167 - ---------------------------------------------------------------------------------------------------------------------------------- 6. Wooddell, Wayne SmarTalk CFO Wages, Expenses 21,663 - ---------------------------------------------------------------------------------------------------------------------------------- 7. - ---------------------------------------------------------------------------------------------------------------------------------- 8. - ---------------------------------------------------------------------------------------------------------------------------------- 9. - ---------------------------------------------------------------------------------------------------------------------------------- 10. - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL PAYMENTS TO INSIDERS $92,603 - ----------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------- PROFESSIONALS - ---------------------------------------------------------------------------------------------------------------------------------- TYPE DATE OF COURT OF ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID NAME PROFESSIONAL PAYMENT APPROVED PAID TO DATE - ---------------------------------------------------------------------------------------------------------------------------------- 1. NOT APPLICABLE AS THERE WERE NO PAYMENTS MADE TO PROFESSIONALS DURING THE REPORTING PERIOD - ---------------------------------------------------------------------------------------------------------------------------------- 2. - ---------------------------------------------------------------------------------------------------------------------------------- 3. - ---------------------------------------------------------------------------------------------------------------------------------- 4. - ---------------------------------------------------------------------------------------------------------------------------------- 5. - ---------------------------------------------------------------------------------------------------------------------------------- 6. TOTAL PAYMENTS TO PROFESSIONALS - ----------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------- ADEQUATE PROTECTION PAYMENTS - ---------------------------------------------------------------------------------------------------------------------------------- SCHEDULED AMOUNTS MONTHLY PAID TOTAL PAYMENTS DURING UNPAID NAME OF CREDITOR DUE MONTH POSTPETITION - ---------------------------------------------------------------------------------------------------------------------------------- 1. NOT APPLICABLE DURING THE CURRENT REPORTING PERIOD - ---------------------------------------------------------------------------------------------------------------------------------- 2. - ---------------------------------------------------------------------------------------------------------------------------------- 3. - ---------------------------------------------------------------------------------------------------------------------------------- 4. - ---------------------------------------------------------------------------------------------------------------------------------- 5. - ---------------------------------------------------------------------------------------------------------------------------------- 6. - ---------------------------------------------------------------------------------------------------------------------------------- 7. - ---------------------------------------------------------------------------------------------------------------------------------- 8. - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL - ---------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------- DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 8 - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- CASE NUMBERS: 99-108 to 99-127 (MFW) - ---------------------------------------------------------------------- MONTH: March 31, 1999 -------------------- - ---------------------------------------------------------------------- QUESTIONNAIRE YES NO - -------------------------------------------------------------------------------------------------------------------- 1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS DURING THIS REPORTING PERIOD? X -------------------------------------------------------------------------------------------------------------------- 2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? X -------------------------------------------------------------------------------------------------------------------- 3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? X -------------------------------------------------------------------------------------------------------------------- 4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD? X -------------------------------------------------------------------------------------------------------------------- 5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? X - ---------------------------------------------------------------------------------------------------------------------- 6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X -------------------------------------------------------------------------------------------------------------------- 7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? X -------------------------------------------------------------------------------------------------------------------- 8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X -------------------------------------------------------------------------------------------------------------------- 9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X -------------------------------------------------------------------------------------------------------------------- 10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS X -------------------------------------------------------------------------------------------------------------------- 11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? X -------------------------------------------------------------------------------------------------------------------- 12. ARE ANY WAGE PAYMENTS PAST DUE? X -------------------------------------------------------------------------------------------------------------------- IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY. 4. Pursuant to an order of the bankruptcy court, the debtors satisfied - -------------------------------------------------------------------------------------------------------------------- obligations on prepaid phonecards sold prior to the petition date. - -------------------------------------------------------------------------------------------------------------------- 5. Pursuant to a credit agreement, dated 1/19/99, with AT&T Corp., and as - -------------------------------------------------------------------------------------------------------------------- authorized by the Final Order authorizing debtors to obtain post-petition - -------------------------------------------------------------------------------------------------------------------- financing, entered by the bankruptcy court on April 5, 1999, the debtor's - -------------------------------------------------------------------------------------------------------------------- received debtor-in-procession financing in the amount of $6,300,000 during - -------------------------------------------------------------------------------------------------------------------- March 1999 from AT&T Corp. - -------------------------------------------------------------------------------------------------------------------- 10. Pursuant to ordinary course business transactions with creditors in - -------------------------------------------------------------------------------------------------------------------- accordance with standard payment terms, certain amounts were outstanding. - -------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------- INSURANCE - -------------------------------------------------------------------------------------------------------------------- YES NO - -------------------------------------------------------------------------------------------------------------------- 1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT? X - -------------------------------------------------------------------------------------------------------------------- 2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X - -------------------------------------------------------------------------------------------------------------------- 3. PLEASE ITEMIZE POLICIES BELOW. - --------------------------------------------------------------------------------------------------------------------
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
- ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- INSURANCE POLICIES - ----------------------------------------------------------------------------------------------------------------------------- TYPE OF PERIOD PAYMENT AMOUNT POLICY CARRIER COVERED & FREQUENCY - ----------------------------------------------------------------------------------------------------------------------------- 1. Directors & Officers Liability (A-side) Executive Risk 12/11/98-10/22/99 $150,000 & annual - ----------------------------------------------------------------------------------------------------------------------------- 2. Directors & Officers Liability (A-side) Reliance Insurance Co. 12/11/98-10/22/99 $105,000 & annual - ----------------------------------------------------------------------------------------------------------------------------- 3. Business Auto Travelers Group 3/24/98-3/24/99 $8,109 & 10 month install - ----------------------------------------------------------------------------------------------------------------------------- 4. Boiler & Machinery Travelers Group 3/24/98-3/24/99 $1,500 & annual - ----------------------------------------------------------------------------------------------------------------------------- 5. Crime Travelers Group 8/6/98-8/6/99 $3,587 & annual - ----------------------------------------------------------------------------------------------------------------------------- 6. Commercial Umbrella Travelers Group 3/24/98-3/24/99 $7,060 & 10 month install - ----------------------------------------------------------------------------------------------------------------------------- 7. Endorsements to Umbrella Policy Travelers Group 3/24/98-3/24/99 $2,741 & pre-payment - ----------------------------------------------------------------------------------------------------------------------------- 8. Kidnap & Ransom Travelers Group 3/24/98-3/24/99 $1,133 & annual - ----------------------------------------------------------------------------------------------------------------------------- 9. Fiduciary Liability* Travelers Group 3/24/98-3/24/99 $1,002 & annual - ----------------------------------------------------------------------------------------------------------------------------- 10. Worker's Compensation - Illinois* Wausau 3/24/98-3/24/99 $539 & annual - ----------------------------------------------------------------------------------------------------------------------------- 11. Worker's Compensation - All Other States* Wausau 3/24/98-3/24/99 $34,860 & 10 month install - ----------------------------------------------------------------------------------------------------------------------------- 12. Worker's Compensation - Administration Fee* Picton Cavanaugh 3/24/98-3/24/99 $15,000 & 10 month install - ----------------------------------------------------------------------------------------------------------------------------- 13. Endorsements to Worker's Compensation* Wausau 3/24/98-3/24/99 ($12,570) & pre-payment - ----------------------------------------------------------------------------------------------------------------------------- 14. Commercial Package Policy Travelers Group 3/24/98-3/24/99 $36,962 & 10 month install - ----------------------------------------------------------------------------------------------------------------------------- 15. Endorsements to Commercial Package Policy Travelers Group 3/24/98-3/24/99 $643 & pre-payment - ----------------------------------------------------------------------------------------------------------------------------- 16. Bond Premium Harry Koch 9/25/98-9/25/99 $500 & annual - ----------------------------------------------------------------------------------------------------------------------------- 17. Business Auto Travelers Group 3/24/99-3/24/00 $8,106 annual - ----------------------------------------------------------------------------------------------------------------------------- 18. Boiler & Machinery Travelers Group 3/24/99-3/24/00 $1,547 annual - ----------------------------------------------------------------------------------------------------------------------------- 19. Commercial Umbrella Travelers Group 3/24/99-3/24/00 $12,212 annual - ----------------------------------------------------------------------------------------------------------------------------- 20. Kidnap & Ransom Travelers Group 3/24/99-3/24/00 $1,133 annual - ----------------------------------------------------------------------------------------------------------------------------- 21. Fiduciary Liability Travelers Group 3/24/99-3/24/00 $1,002 annual - ----------------------------------------------------------------------------------------------------------------------------- 22. Worker's Compensation - Illinois* Wausau 3/24/99-3/24/00 $547 annual - ----------------------------------------------------------------------------------------------------------------------------- 23. Worker's Compensation - All Other States* Wausau 3/24/99-3/24/00 $17,073 annual - ----------------------------------------------------------------------------------------------------------------------------- 24. Worker's Compensation - Administration Fee* Picton Cavanaugh 3/24/99-3/24/00 $15,000 annual - ----------------------------------------------------------------------------------------------------------------------------- 25. Commercial Package Policy Travelers Group 3/24/99-3/24/00 $41,532 annual - ----------------------------------------------------------------------------------------------------------------------------- * Worker's Compensation and General Liability premiums are based on "estimated" payrolls. Premium adjustments may be made as actual payrolls are known. - -----------------------------------------------------------------------------------------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 9 - --------------------------------------------------------------------------------- - --------------------------------------------------------------------------------- CASE NUMBERS: 99-108 to 99-127 (MFW) - --------------------------------------------------------------------------------- MONTH: March 31, 1999 -------------- PERSONNEL* - ------------------------------------------------------------------------------------------- ---------- FULL TIME PART TIME - ------------------------------------------------------------------------------------------- ---------- 1. Total number of employees at beginning of period (as of 3/1/99) 168 1 - ------------------------------------------------------------------------------------------- ---------- 2. Number of employees hired during the period 3 0 - ------------------------------------------------------------------------------------------- ---------- 3. Number of employees terminated or resigned during the period 0 0 - ------------------------------------------------------------------------------------------- ---------- 4. Total number of employees on payroll at end of period (as of 3/31/99) 171 1 - ------------------------------------------------------------------------------------------- ---------- - ------------------------------------------------------------------------------------------- ---------- - ------------------------------------------------------------------------------------------- ----------
* Employees included in personnel are employees of the debtors and, accordingly, employees of non-debtors are excluded. - -------------------------------------------------------------------------------- CHANGE OF ADDRESS - -------------------------------------------------------------------------------- If your mailing address has changed and you have not previously notified the DATE of CHANGE: _____________________________ NEW ADDRESS __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ - -------------------------------------------------------------------------------- -----END PRIVACY-ENHANCED MESSAGE-----