-----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, QLXn7RaDUSPWA7LRNe7KuNO/0rJEv8P1ylecqLAYs9ijQAmyfdGBybaqz5n+b6S0 YeBLXnQjloj3+NinHFsZuA== 0000950134-02-013042.txt : 20021029 0000950134-02-013042.hdr.sgml : 20021029 20021029130206 ACCESSION NUMBER: 0000950134-02-013042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20021025 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20021029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEVCO INC CENTRAL INDEX KEY: 0001021706 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-LUMBER, PLYWOOD, MILLWORK & WOOD PANELS [5031] IRS NUMBER: 752666013 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21621 FILM NUMBER: 02801038 BUSINESS ADDRESS: STREET 1: UNIVERSITY CENTRE I STREET 2: 1300 S UNIVERSITY DR STE 200 CITY: FORT WORTH STATE: TX ZIP: 76107 BUSINESS PHONE: 8173322758 MAIL ADDRESS: STREET 1: UNIVERSITY CENTRE I STREET 2: 1300 S. UNIVERSITY DRIVE SUITE 200 CITY: FORTH WORTH STATE: TX ZIP: 76107 8-K 1 d00556e8vk.txt FORM 8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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): OCTOBER 25, 2002 KEVCO, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) TEXAS 000-21621 75-2666013 (STATE OF INCORPORATION) (COMMISSION FILE NO.) (IRS EMPLOYER IDENTIFICATION NO.)
1310 WEST EL PASO FORT WORTH, TEXAS 76102 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (817) 332-5720 ================================================================================ ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE Kevco, Inc. (the "Company") is filing herewith the consolidated Monthly Operating Report of Debtors and Debtors in Possession for the period ended September 30, 2002 that the Company filed with the United States Bankruptcy Court for Northern District of Texas, Fort Worth Division on October 25, 2002 in connection with the Company's and its subsidiaries' ongoing proceedings under Chapter 11 of the United States Bankruptcy Code (11 U.S.C. Sections 101-1330), Case nos. 401-40783-BJH-11 through Case nos. 401-40790-BJH-11. THE MONTHLY OPERATING REPORT FILED HEREWITH CONTAINS UNAUDITED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION THAT ARE SUBJECT TO FUTURE RECONCILIATIONS AND ADJUSTMENTS, INCLUDING SIGNIFICANT WRITE-DOWNS OF ASSET VALUES, WHICH THE COMPANY ANTICIPATES WOULD RESULT IN A DEFICIT IN THE COMPANY'S STOCKHOLDERS' EQUITY. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1 Consolidated Monthly Operating Report for Kevco, Inc. for the Period Ended September 30, 2002 (1) - ---------- (1) The Company agrees to furnish supplementally a copy of any omitted schedule or similar attachment to the Commission upon its request. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KEVCO, INC Date: October 29, 2002 By: /s/ Wilford W. Simpson -------------------------------- Wilford W. Simpson Executive Vice President and Chief Financial Officer EXHIBIT INDEX
Exhibit No. Description - ----------- ----------- 99.1 Consolidated Monthly Operating Report for Kevco, Inc. for the Period Ended September 30, 2002 (1)
- ---------- (1) The Company agrees to furnish supplementally a copy of any omitted schedule or similar attachment to the Commission upon its request. EX-99.1 3 d00556exv99w1.txt CONSOLIDATED MONTHLY OPERATING REPORT EXHIBIT 99.1 CASE NAME: KEVCO, INC. ACCRUAL BASIS CASE NUMBER: 401-40783-BJH-11 JUDGE: BARBARA J. HOUSER UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF TEXAS -------- ----- FORT WORTH DIVISION ---------- MONTHLY OPERATING REPORT MONTH ENDING: SEPTEMBER 30, 2002 ------------------ 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 - 7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE. RESPONSIBLE PARTY: EXECUTIVE VICE PRESIDENT AND /s/ Wilford W. Simpson CHIEF FINANCIAL OFFICER - --------------------------------------- ---------------------------- Original Signature of Responsible Party Title WILFORD W. SIMPSON OCTOBER 25, 2002 - --------------------------------------- ---------------------------- Printed Name of Responsible Party Date PREPARER: /s/ Dennis S. Faulkner ACCOUNTANT FOR DEBTOR - --------------------------------------- ---------------------------- Original Signature of Preparer Title DENNIS S. FAULKNER OCTOBER 25, 2002 - --------------------------------------- ---------------------------- Printed Name of Preparer Date CASE NAME: KEVCO, INC. CASE NUMBER: 401-40783-BJH-11 PREFACE TO THE KEVCO, INC. MONTHLY OPERATING REPORT Due to the financial impact of events transpiring in September, Debtors have elected to preface the September Monthly Operating Report with a summary of significant events and the impact these events have had on the substance as well as presentation of Debtors' financial statements. The Debtors' "Joint Application for Substantive Consolidation of Debtor Entities and Elimination of Intercompany Debtor Claims" was approved September 18, 2002. Accordingly, the September Monthly Operating Report is presented on a consolidated basis and intercompany receivables and payables have been eliminated. In addition, the Senior Notes and the Senior Subordinated Convertible Notes which had been reflected by each Debtor due to their joint and several nature, have also been adjusted accordingly. An "Order Providing Official Committee of Unsecured Creditors and Debtors Authority to Compromise Adversary Proceeding Against Lender Group and Approving Settlement Pursuant to Fed.R.Bankr.P. 9019," entered June 25, 2002, approved a settlement wherein certain of Debtors' remaining assets including real estate, accounts receivable, insurance deposits and cash were transferred to the Lender Group Liquidating Trust ("LGLT") in settlement of the remaining balance of Debtors' secured debt. Certain assets were excluded, such as rights to all recoveries associated with avoidance and tort claims (the value of these assets cannot be quantified at this time, therefore, no value has been assigned). The property and cash transactions were not consummated until September 2002 in order that certain real estate sales could be closed. An amendment to the agreement dated August 1, 2002 was entered into that defined the terms of the interim period. During September, $1,115,039 in cash, real estate in Alabama, Indiana, North Carolina and Kansas with a book value of $6,820,683 as well as rights to the refund of a $300,000 letter of credit drawn by Liberty Mutual were transferred to the LGLT pursuant to the terms of the agreement. A complete itemization of transferred and retained assets is set forth in the Settlement Agreement. During September, substantial revisions were made to Debtors' financial statements as set forth in the Monthly Operating Report. Some of the more significant changes are summarized as follows: (a) the Debtors were consolidated and intercompany accounts eliminated; (b) the asset transfers to the Lender Group Liquidating Trust (see footnote above) were recognized; (c) liabilities were adjusted based on the Debtors' analysis of proofs of claims filed since the petition date; (d) unnecessary accrued liabilities were eliminated; (e) all balance sheet accounts were reviewed in detail and the remaining accounts were adjusted to more accurately reflect the assets and liabilities known to exist at the present time; (f) post-petition losses were reduced by approximately $21 million of interest accruals associated with the Senior Notes and the Senior Subordinated Convertible Notes; (g) pre-petition Owners' Equity increased (and the corresponding liability decreased) by approximately $1.4 million due to the elimination of the duplicative debt balances associated with secured obligations which were joint and several; and (h) certain direct charges to equity were made as a result of the adjustment of assets and liabilities noted above. CASE NAME: KEVCO, INC. ACCRUAL BASIS - 1 CASE NUMBER: 401-40783-BJH-11 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH ASSETS AMOUNT SEP-02 MONTH MONTH - ------ --------- ------ ----- ----- 1. Unrestricted Cash 6,642,444 4,570,339 2. Restricted Cash (FOOTNOTE) 88,200 3. Total Cash 6,642,444 4,658,539 4. Accounts Receivable (Net) 25,520,555 5. Inventory 42,404,867 6. Notes Receivable 7. Prepaid Expenses 3,883,962 8. Other (Attach List) 1,032,596 9. Total Current Assets 79,484,424 4,658,539 10. Property, Plant & Equipment 57,417,572 11. Less: Accumulated Depreciation/Depletion (15,601,607) 12. Net Property, Plant & Equipment 41,815,965 13. Due From Insiders 14. Other Assets - Net of Amortization (Attach List) 114,293,918 15. Other (Attach List) 616,627,534 16. Total Assets 852,221,841 4,658,539 POST PETITION LIABILITIES 17. Accounts Payable 18. Taxes Payable 19. Notes Payable 20. Professional Fees 21. Secured Debt 22. Other (Attach List) 88,200 23. Total Post Petition Liabilities 88,200 PRE PETITION LIABILITIES 24. Secured Debt 75,885,064 25. Priority Debt 2,997,467 274,919 26. Unsecured Debt 26,885,702 33,237,245 27. Other (Attach List) 663,396,485 130,466,927 28. Total Pre Petition Liabilities 769,164,718 163,979,091 29. Total Liabilities 769,164,718 164,067,291 EQUITY 30. Pre Petition Owners' Equity 83,057,123 31. Post Petition Cumulative Profit Or (Loss) (144,542,287) 32. Direct Charges To Equity (Attach Explanation) (97,923,588) 33. Total Equity (159,408,752) 34. Total Liabilities and Equity 4,658,539
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. SUPPLEMENT TO CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 1 COMPARATIVE BALANCE SHEET
SCHEDULED MONTH ASSETS AMOUNT SEP-02 MONTH MONTH - ------ --------- ------ ----- ----- A. Inventory Vendor Deposit 136,598 B. Leased Facility Deposit 182,186 C. Prepaid Escrow Retention Pmts 459,000 D. Cash Surrender Value: Life Ins. 254,812 E. TOTAL OTHER ASSETS - LINE 8 1,032,596 A. Capitalized loan costs 4,790,071 B. Goodwill 109,467,765 C. Capitalized Organization Costs 36,082 D. E. TOTAL OTHER ASSETS NET OF AMORTIZATION - LINE 14 114,293,918 A. Investment in Subsidiaries 81,731,049 B. Intercompany Receivables 534,896,485 C. D. E. TOTAL OTHER ASSETS - LINE 15 616,627,534 POST PETITION LIABILITIES A. Retention Bonus (FOOTNOTE) 88,200 B. C. D. E. TOTAL OTHER POST PETITION LIABILITIES - LINE 22 88,200 PRE PETITION LIABILITIES A. Interco. Liabilities 534,896,485 B. 10 3/8% Sr. Sub. Notes 105,000,000 105,000,000 C. Senior Sub. Exchangeable Notes 23,500,000 23,500,000 D. Accrued Interest: Notes/Bonds 1,966,927 E. TOTAL OTHER PRE PETITION LIABILITIES - LINE 27 663,396,485 130,466,927
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 2 CASE NUMBER: 401-40783-BJH-11 INCOME STATEMENT
MONTH MONTH MONTH QUARTER REVENUES JUL-02 AUG-02 SEP-02 TOTAL - -------- ------ ------ ------ ------- 1. Gross Revenues SEE FOOTNOTE SEE FOOTNOTE 0 0 2. Less: Returns & Discounts 3. Net Revenue 0 0 COST OF GOODS SOLD 4. Material 5. Direct Labor 6. Direct Overhead 7. Total Cost Of Goods Sold 8. Gross Profit 0 0 OPERATING EXPENSES 9. Officer / Insider Compensation 12,771 12,771 10. Selling & Marketing 11. General & Administrative 175 175 12. Rent & Lease 4,820 4,820 13. Other (Attach List) 46,607 46,607 14. Total Operating Expenses 64,373 64,373 15. Income Before Non-Operating Income & Expense (64,373) (64,373) OTHER INCOME & EXPENSES 16. Non-Operating Income (Att List) 37,408 37,408 17. Non-Operating Expense (Att List) 1,127,050 1,127,050 18. Interest Expense 19. Depreciation / Depletion 20. Amortization 21. Other (Attach List) 22. Net Other Income & Expenses (1,089,642) (1,089,642) REORGANIZATION EXPENSES 23. Professional Fees 309,961 309,961 24. U.S. Trustee Fees 25. Other (Attach List) 26. Total Reorganization Expenses 309,961 309,961 27. Income Tax 28. Net Profit (Loss) (1,463,976) (1,463,976)
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. SUPPLEMENT TO CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 2 INCOME STATEMENT
MONTH MONTH MONTH QUARTER OPERATING EXPENSES JUL-02 AUG-02 SEP-02 TOTAL - ------------------ ------ ------ ------ ------- A. Contract Labor SEE FOOTNOTE SEE FOOTNOTE 2,583 2,583 B. Insurance 39,080 39,080 C. Utilities 156 156 D. Payroll Taxes 4,788 4,788 E. F. 0 TOTAL OTHER OPERATING EXPENSES - LINE 13 46,607 46,607 OTHER INCOME & EXPENSES A. Lender Group Liquidating Trust expense reimbursements (FOOTNOTE) 28,335 28,335 B. Interest Income 9,073 9,073 C. 0 D. E. TOTAL NON-OPERATING INCOME - LINE 16 37,408 37,408 A. SEC 8K Filing 11,511 11,511 B. Shareholder Mailing List 500 500 C. Transfer to Lender Group Liquidating Trust 1,115,039 1,115,039 D. 0 E. 0 TOTAL NON-OPERATING EXPENSE - LINE 17 1,127,050 1,127,050 REORGANIZATION EXPENSES A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER REORGANIZATION EXPENSES - LINE 25 0 0
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 3 CASE NUMBER: 401-40783-BJH-11
CASH RECEIPTS AND MONTH MONTH MONTH QUARTER DISBURSEMENTS JUL-02 AUG-02 SEP-02 TOTAL - ----------------- ------ ------ ------ ------- 1. Cash - Beginning Of Month SEE FOOTNOTE SEE FOOTNOTE 6,122,515 6,122,515 RECEIPTS FROM OPERATIONS 2. Cash Sales COLLECTION OF ACCOUNTS RECEIVABLE 3. Pre Petition 4. Post Petition 5. Total Operating Receipts NON-OPERATING RECEIPTS 6. Loans & Advances (Attach List) 7. Sale of Assets 8. Other (Attach List) 37,408 37,408 9. Total Non-Operating Receipts 37,408 37,408 10. Total Receipts 37,408 37,408 11. Total Cash Available 6,159,923 6,159,923 OPERATING DISBURSEMENTS 12. Net Payroll 12,771 12,771 13. Payroll Taxes Paid 4,788 4,788 14. Sales, Use & Other Taxes Paid 15. Secured / Rental / Leases 4,820 4,820 16. Utilities 156 156 17. Insurance 39,080 39,080 18. ADP Payroll fees 164 164 19. Contract Labor 2,583 2,583 20. Delivery Expenses 11 11 21. SEC filing fees 11,511 11,511 22. Repairs & Maintenance 23. Supplies 24. Shareholder Mailing List 500 500 25. Other (Attach List) 1,115,039 1,115,039 26. Total Operating Disbursements 1,191,423 1,191,423 REORGANIZATION DISBURSEMENTS 27. Professional Fees 309,961 309,961 28. U.S. Trustee Fees 29. Other (Attach List) 30. Total Reorganization Expenses 309,961 309,961 31. Total Disbursements 1,501,384 1,501,384 32. Net Cash Flow (1,463,976) (1,463,976) 33. Cash - End of Month 4,658,539 4,658,539
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. SUPPLEMENT TO CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 3 CASH RECEIPTS AND DISBURSEMENTS
MONTH MONTH MONTH QUARTER NON-OPERATING RECEIPTS JUL-02 2-AUG SEP-02 TOTAL - ---------------------- ------ ----- ------ ------- A. SEE FOOTNOTE SEE FOOTNOTE 0 B. 0 C. 0 D. 0 E. 0 TOTAL LOANS & ADVANCES- LINE 6 0 0 A. Lender Group Liquidating Trust Expense Reimbursement (FOOTNOTE) 28,335 28,335 B. Interest Income 9,073 9,073 C. 0 D. 0 E. 0 TOTAL OTHER NON-OPERATING RECEIPTS - LINE 8 37,408 37,408 OPERATING DISBURSEMENTS A. Transfer to Lender Group Liquidating Trust Pursuant to Settlement 1,115,039 1,115,039 B. 0 C. 0 D. 0 E. 0 F. 0 TOTAL OTHER OPERATING DISBURSEMENTS - LINE 25 1,115,039 1,115,039 REORGANIZATION DISBURSEMENTS A. 0 B. 0 C. 0 D. 0 E. 0 TOTAL OTHER REORGANIZATION DISBURSEMENTS - LINE 29 0 0
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 4 CASE NUMBER: 401-40783-BJH-11
SCHEDULED MONTH ACCOUNTS RECEIVABLE AGING AMOUNT SEP-02 MONTH MONTH - ------------------------- --------- ------ ----- ----- 1. 0 - 30 2. 31 - 60 3. 61 - 90 4. 91 + 5. Total Accounts Receivable 25,520,555 0 6. (Amount Considered Uncollectible) 7. Accounts Receivable (Net) 25,520,555 0
AGING OF POST PETITION MONTH: SEPTEMBER-02 TAXES AND PAYABLES ------------
0 - 30 31 - 60 61 - 90 91 + TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL - ------------- ------ ------- ------- ---- ----- 1. Federal 2. State 3. Local 4. Other (Attach List) 5. Total Taxes Payable 0 0 6. Accounts Payable 0 0
MONTH: SEPTEMBER-02 ------------ STATUS OF POST PETITION TAXES
BEGINNING TAX AMOUNT WITHHELD ENDING TAX FEDERAL LIABILITY* AND/OR ACCRUED (AMOUNT PAID) LIABILITY - ------- ------------- ---------------- ------------- ---------- 1. Withholding ** 4,286 (4,286) 0 2. FICA - Employee ** 251 (251) 0 3. FICA - Employer ** 251 (251) 0 4. Unemployment 5. Income 6. Other (Attach List) 7. Total Federal Taxes 4,788 (4,788) 0 STATE AND LOCAL 8. Withholding 9. Sales 10. Excise 11. Unemployment 12. Real Property 13. Personal Property 14. Other (Attach List) 15. Total State And Local 0 16. Total Taxes 4,788 (4,788) 0
* 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 of deposit. This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. ACCRUAL BASIS - 5 CASE NUMBER: 401-40783-BJH-11 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: SEPTEMBER-02 ------------
BANK RECONCILIATIONS Account # 1 Account # 2 Other Accounts - -------------------- ----------- ----------- -------------- A. BANK: Bank of America Bank of America (Attach List) TOTAL B. ACCOUNT NUMBER: 1295026976 3750801912 C. PURPOSE (TYPE): Operating Account Payroll-Mgmt 1. Balance Per Bank Statement 172,262 10,351 4,488,641 4,671,254 2. Add: Total Deposits Not Credited 3. Subtract: Outstanding Checks (6,385) (6,330) (12,715) 4. Other Reconciling Items 5. Month End Balance Per Books 172,262 3,966 4,482,311 4,658,539 6. Number of Last Check Written N/A N/A
INVESTMENT ACCOUNTS
DATE OF TYPE OF BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PURCHASE PRICE CURRENT VALUE - --------------------------- -------- ---------- -------------- ------------- 7. 8. 9. 10. (Attach List) 11. Total Investments 0 CASH 12. Currency On Hand 0 13. Total Cash - End of Month 4,658,539
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. SUPPLEMENT TO CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 5 MONTH: SEPTEMBER-02 ------------
BANK RECONCILIATIONS Account # 3 Account # 4 Account # 5 - -------------------- ----------- ----------- ----------- A. BANK: Bank of America Bank of America Bank of America TOTAL B. ACCOUNT NUMBER: 3751629012 3751775241 3751930222 OTHER BANK C. PURPOSE (TYPE): DIP Disbursement Account Stay Pay Money Market ACCOUNTS 1. Balance Per Bank Statement 11,691 88,200 4,388,750 4,488,641 2. Add: Total Deposits Not Credited 0 0 0 3. Subtract: Outstanding Checks (6,330) 0 0 (6,330) 4. Other Reconciling Items 0 0 0 5. Month End Balance Per Books 5,361 88,200 4,388,750 4,482,311 6. Number of Last Check Written 3138 N/A N/A
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER DATE OF PURCHASE TYPE OF INSTRUMENT PURCHASE PRICE CURRENT VALUE - --------------------------- ---------------- ------------------ -------------- ------------- A. B. C. D. TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0
CASE NAME: KEVCO, INC. 2ND SUPPLEMENT TO CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 5 MONTH: AUGUST-02 ---------
BANK RECONCILIATIONS Account # 6 - -------------------- ----------- A. BANK: Bank of America/ Nations Funds TOTAL B. ACCOUNT NUMBER: 846713 OTHER BANK C. PURPOSE (TYPE): Kevco, Inc. S-T Investment ACCOUNTS 1. Balance Per Bank Statement 0 0 2. Add: Total Deposits Not Credited 0 0 3. Subtract: Outstanding Checks 0 0 4. Other Reconciling Items 0 0 5. Month End Balance Per Books 0 0 6. Number of Last Check Written N/A
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER DATE OF PURCHASE TYPE OF INSTRUMENT PURCHASE PRICE CURRENT VALUE - --------------------------- ---------------- ------------------ -------------- ------------- A. B. C. D. TOTAL OTHER INVESTMENT ACCOUNTS - LINE 10 0
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 6 CASE NUMBER: 401-40783-BJH-11 MONTH: SEPTEMBER-02 ------------ 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. Also, for payments to Insiders, identify the type of compensation paid (e.g. sa INSIDERS
NAME TYPE OF PAYMENT AMOUNT PAID TOTAL PAID TO DATE ---- --------------- ----------- ------------------ 1. Sharon Romere Expense Reimb. 1,949 2. Joe Tomczak Expense Reimb. 626 3. John Wittig Expense Reimb. 263 4. Sharon Romere Payroll 126,246 5. Joe Tomczak Payroll 177,884 6. John Wittig Payroll 144,039 7. Wil Simpson Payroll 12,771 290,995 Other (see attached) 0 132,293 8. Total Payments To Insiders 12,771 874,295
PROFESSIONALS
DATE OF COURT ORDER TOTAL AUTHORIZING AMOUNT TOTAL PAID INCURRED NAME PAYMENT APPROVED AMOUNT PAID TO DATE & UNPAID* ---- ----------- -------- ----------- ---------- --------- 1. Haynes and Boone 3/20/2001 1,371,480 24,797 1,371,480 2. Lain, Faulkner & Co., P.C. 3/20/2001 363,793 36,199 363,793 3. Baker & McKenzie 3/20/2001 480,314 480,314 4. Gordion Group 3/20/2001 17,438 17,438 5. (Attach List) 1,077,601 248,965 1,077,601 6. Total Payments To Professionals 3,310,626 309,961 3,310,626 0
* Include all fees incurred, both approved and unapproved POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
SCHEDULED MONTHLY AMOUNTS PAID TOTAL UNPAID NAME OF CREDITOR PAYMENTS DUE DURING MONTH POST PETITION ---------------- ----------------- ------------ ------------- 1. None N/A 0 2. 3. 4. 5. (Attach List) 6. TOTAL 0 0 0
This form does x does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. SUPPLEMENT TO CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS - 6 PAYMENTS TO INSIDERS AND PROFESSIONALS MONTH: SEPTEMBER-02 ------------ INSIDERS
TOTAL PAID NAME TYPE OF PAYMENT AMOUNT PAID TO DATE ---- --------------- ----------- --------- A. Bill Estes Director's Fees 13,000 B. Peter McKee Director's Fees 12,000 C. Richard Nevins Director's Fees 13,000 D. Wingate Partners Management Fee 89,390 E. Wingate Partners Expense Reimb. 3,984 F. Wil Simpson Expense Reimb. 919 G. H. TOTAL OTHER PAYMENTS TO INSIDERS - LINE 5 132,293
PROFESSIONALS
DATE OF COURT ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID TOTAL INCURRED NAME PAYMENT APPROVED PAID TO DATE & UNPAID * ---- ----------- -------- ------ ---------- -------------- A. Ernst & Young 3/20/2001 77,715 77,715 B. Mark MacDonald & Assoc. 3/20/2001 872,110 248,965 872,110 C. David T. Roberts 3/20/2001 64,813 64,813 D. Barnes & Thornburg 3/20/2001 62,963 62,963 E. Cozen & O'Connor, PC F. George Morgan & Sneed, PC G. H. TOTAL OTHER PAYMENTS TO PROFESSIONALS-LINE 5 1,077,601 248,965 1,077,601
* Include all fees incurred, both approved and unapproved POST PETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
SCHEDULED MONTHLY AMOUNT PAID TOTAL UNPAID NAME OF CREDITOR PAYMENTS DUE DURING MONTH POST PETITION ---------------- ----------------- ------------ ------------- A. B. C. D. E. STATUS OF OTHER CREDITORS - LINE 5
CASE NAME: KEVCO, INC. ACCRUAL BASIS - 7 CASE NUMBER: 401-40783-BJH-11 MONTH: SEPTEMBER-02 ------------ QUESTIONNAIRE
YES NO --- --- 1. Have any Assets been sold or transferred outside the normal course of business this reporting period? X 2. Have any funds been disbursed from any account other than a debtor in possession account? X 3. Are any Post Petition Receivables (accounts, notes, or loans) due from related parties? X 4. Have any payments been made on Pre Petition Liabilities this reporting period? X 5. Have any Post Petition Loans been received by the debtor from any party? X 6. Are any Post Petition Payroll Taxes past due? X 7. Are any Post Petition State or Federal Income Taxes past due? X 8. Are any Post Petition Real Estate Taxes past due? X 9. Are any other Post Petition Taxes past due? X 10. Are any amounts owed to Post Petition creditors delinquent? X 11. Have any Pre Petition 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. SEE FOOTNOTE 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 canceled or not renewed during this reporting period, provide an explanation below. Attach additional sheets if necessary. INSTALLMENT PAYMENTS
TYPE OF POLICY CARRIER PERIOD COVERED PAYMENT AMOUNT & FREQUENCY -------------- ------- -------------- -------------------------- General Liability Aon Risk Services 9/1/02-3/1/03 Semi-Annual $35,921 D&O Liability Great American Insurance 11/1/2001-10/31/2004 3-years $64,657
This form x does does not have related footnotes on Footnotes Supplement. --- --- CASE NAME: KEVCO, INC. FOOTNOTES SUPPLEMENT CASE NUMBER: 401-40783-BJH-11 ACCRUAL BASIS MONTH: SEPTEMBER-02 ------------
ACCRUAL BASIS LINE FORM NUMBER NUMBER FOOTNOTE / EXPLANATION - ------------- ------ ---------------------- 1 2 Pursuant to a March 14, 2001 Order, employee 1 22A retention plans were approved to provide incentives for key employees to remain employed by the Debtors. Wil Simpson, Kevco, Inc.'s Executive Vice President and Chief Financial Officer, remains employed by the Debtors and the retention bonus is being held in a segregated account. 2,3 ALL For the months of July and August, 2002, the income statements were presented on a separate entity basis. In conjunction with the consolidation of the entities pursuant to the Order Approving Debtors' Joint Application for Substantive Consolidation of Debtor Entities and Elimination of Intercompany Debtor Claims, no attempt was made to consolidate prior months income and cash flow statements. Please refer to the individual Monthly Operating Reports for each separate entity for this information. 2 16A The Lender Group Liquidating Trust, pursuant to the 3 8A Settlement Agreement dated June 24, 2002, as amended August 1, 2002, is responsible for all pre- and post-effective date expenses related to the creation and maintenance of the LGLT and the Trust Assets. 7 1 See Preface to the Kevco, Inc. Monthly Operating Report. 7 3 The Lender Group Liquidating Trust reimbursed the Consolidated Debtor for 50% of the General Liability policy premium. The D&O policy extension applies only to the discovery period. Actual coverage ceased November 2001.
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