EX-99 2 a09-18295_1ex99.htm EX-99

Exhibit 99

 

UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA

 

In re:

CMR Mortgage Fund II, LLC

Case No.

09-30788

 

 

 

 

 

 

 

 

CHAPTER 11

 

 

 

MONTHLY OPERATING REPORT

 

 

 

(GENERAL BUSINESS CASE)

 

 

 

 

 

SUMMARY OF FINANCIAL STATUS

 

 

 

 

 

MONTH ENDED:

Jun-09

 

PETITION DATE:

03/31/09

 

 

1.

Debtor in possession (or trustee) hereby submits this Monthly Operating Report on the Accrual Basis of accounting (or if checked here the Office of the U.S. Trustee or the Court has approved the Cash Basis of Accounting for the Debtor).

 

Dollars reported in $1

 

 

 

End of Current
Month

 

End of Prior
Month

 

As of Petition
Filing

 

2.

Asset and Liability Structure

 

 

 

 

 

 

 

 

a. Current Assets

 

$

52,135

 

$

94,108

 

 

 

 

b. Total Assets (see schedule J, Note 1)

 

$

72,924,153

 

$

73,457,766

 

$

70,367,249

 

 

c. Current Liabilities

 

$

12,902,442

 

$

12,708,048

 

 

 

 

d. Total Liabilities (Note 2)

 

$

34,817,815

 

$

34,623,421

 

$

6,295,128

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Month

 

Prior Month

 

Cumulative
(Case to Date)

 

3.

Statement of Cash Receipts & Disbursements for Month

 

 

 

 

 

 

 

 

a. Total Receipts

 

$

6,500

 

$

331,338

 

$

426,700

 

 

b. Total Disbursements

 

$

6,737

 

$

337,870

 

$

426,314

 

 

c. Excess (Deficiency) of Receipts Over Disbursements (a - b)

 

$

(237

)

$

(6,532

)

$

386

 

 

d. Cash Balance Beginning of Month

 

$

623

 

$

7,155

 

$

0

 

 

e. Cash Balance End of Month (c + d)

 

$

386

 

$

623

 

$

386

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Month

 

Prior Month

 

Cumulative
(Case to Date)

 

4.

Profit/(Loss) from the Statement of Operations

 

$

(728,007

)

$

(61,212

)

$

(620,268

)

5.

Account Receivables (Pre and Post Petition)

 

$

0

 

$

0

 

 

 

6.

Post-Petition Liabilities

 

$

12,902,442

 

$

12,708,048

 

 

 

7.

Past Due Post-Petition Account Payables (over 30 days)

 

$

1,339,482

 

$

1,193,222

 

 

 

 

At the end of this reporting month:

 

Yes

 

No

 

8.

Have any payments been made on pre-petition debt, other than payments in the normal course to secured creditors or lessors? (if yes, attach listing including date of payment, amount of payment and name of payee)

 

o

 

x

 

9.

Have any payments been made to professionals?  (if yes, attach listing including date of payment, amount of payment and name of payee)

 

o

 

x

 

10.

If the answer is yes to 8 or 9, were all such payments approved by the court?

 

o

 

N/A

 

11.

Have any payments been made to officers, insiders, shareholders, relatives?  (if yes, attach listing including date of payment, amount and reason for payment, and name of payee)

 

o

 

x

 

12.

Is the estate insured for replacement cost of assets and for general liability?

 

x

 

o

 

13.

Are a plan and disclosure statement on file?

 

o

 

x

 

14.

Was there any post-petition borrowing during this reporting period?

 

o

 

x

 

 

15.

Check if paid: Post-petition taxes

o;

U.S. Trustee Quarterly Fees o;  Check if filing is current for: Post-petition

 

tax reporting and tax returns:

x.

 

(Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not paid current or if post-petition tax reporting and tax return filings are not current.)

 

Note 1:

 

Scheduled Values for Loans and advances secured by DOT are based on the face amounts of the loans, taking into account the most recent available appraisals and internal valuations, and may include adjustment for litigation or foreclosure action risk contingencies.

 

 

 

Note 2:

 

See Note 5 of Liabilities and Equity

 

I declare under penalty of perjury I have reviewed the above summary and attached financial statements, and after making reasonable inquiry believe these documents are correct.

 

Date:

7/14/2009

 

/s/ Graham Seel

 

 

 

Responsible Individual

 


 

STATEMENT OF OPERATIONS
(General Business Case)

For the Month Ended 06/30/09

 

Current Month

 

 

 

 

 

Cumulative

 

Next Month

 

Actual

 

Forecast

 

Variance

 

 

 

 

 

(Case to Date)

 

Forecast

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

—

 

1

 

Gross Sales

 

 

 

 

 

 

 

 

 

—

 

2

 

less: Sales Returns & Allowances

 

 

 

 

 

$

0

 

 

 

—

 

3

 

Net Sales

 

$

0

 

 

 

 

 

 

 

—

 

4

 

less: Cost of Goods Sold (Schedule ‘B’)

 

 

 

 

 

—

 

 

 

—

 

5

 

Gross Profit

 

—

 

 

 

23,360

 

118,000

 

(94,640

)

6

 

Interest

 

269,462

 

118,000

 

 

 

 

 

—

 

7

 

Other Income: Gain on sale - REO

 

 

 

 

 

(3,172

)

(18,000

)

14,828

 

8

 

Less: Servicing Fees

 

(39,651

)

(18,000

)

 

 

 

 

—

 

9

 

 

 

 

 

 

 

$

20,188

 

$

100,000

 

$

(79,812

)

10

 

Total Revenues

 

$

229,811

 

$

100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

—

 

11

 

Compensation to Owner(s)/Officer(s)

 

 

 

 

 

 

 

 

 

—

 

12

 

Salaries

 

 

 

 

 

 

 

 

 

—

 

13

 

Commissions

 

 

 

 

 

 

 

 

 

—

 

14

 

Contract Labor

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent/Lease:

 

 

 

 

 

 

 

 

 

—

 

15

 

Personal Property

 

 

 

 

 

 

 

 

 

—

 

16

 

Real Property

 

 

 

 

 

 

 

 

 

—

 

17

 

Insurance

 

 

 

 

 

$

33,097

 

$

33,000

 

$

(97

)

18

 

Management Fees

 

$

99,580

 

$

33,000

 

 

 

 

 

—

 

19

 

Depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes:

 

 

 

 

 

 

 

 

 

—

 

20

 

Employer Payroll Taxes

 

 

 

 

 

 

 

 

 

—

 

21

 

Real Property Taxes

 

 

 

 

 

 

 

 

 

—

 

22

 

Other Taxes

 

 

 

 

 

 

 

 

 

—

 

23

 

Other Selling

 

219,494

 

12,400

 

6,413

 

12,400

 

5,987

 

24

 

Other Administrative

 

480,858

 

165,000

 

$

146,007

 

165,000

 

18,993

 

25

 

Interest

 

$

122,481

 

 

 

$

515,000

 

 

 

(515,000

)

26

 

Other Expenses:   Provision for loan losses

 

$

(145,087

)

—

 

$

0

 

—

 

—

 

27

 

Impairment for REOs

 

 

 

 

 

 

 

 

 

—

 

28

 

 

 

 

 

 

 

 

 

 

 

—

 

29

 

 

 

 

 

 

 

 

 

 

 

—

 

30

 

 

 

 

 

 

 

 

 

 

 

—

 

31

 

 

 

 

 

 

 

 

 

 

 

—

 

32

 

 

 

 

 

 

 

 

 

 

 

—

 

33

 

 

 

 

 

 

 

 

 

 

 

—

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

700,517

 

$

210,400

 

$

(490,117

)

35

 

Total Expenses

 

$

777,326

 

$

210,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(680,329

)

$

(110,400

)

$

(569,929

)

36

 

Subtotal

 

$

(547,515

)

$

(110,400

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reorganization Items:

 

$

(63,109

)

$

(25,000

)

(40,000

)

$

(25,000

)

15,000

 

37

 

Professional Fees

 

 

 

 

 

 

 

 

 

—

 

38

 

Provisions for Rejected Executory Contracts

 

 

 

 

 

 

 

 

 

—

 

39

 

Interest Earned on Accumulated Cash from Resulting Chp 11 Case

 

 

 

 

 

 

 

 

 

—

 

40

 

Gain or (Loss) from Sale of Equipment

 

 

 

 

 

—

 

$

(325

)

(325

)

41

 

U.S. Trustee Quarterly Fees

 

 

 

$

(325

)

 

 

 

 

—

 

42

 

 

 

 

 

 

 

(40,000.00

)

(25,325.00

)

(14,675.00

)

43

 

Total Reorganization Items

 

(63,109.00

)

(25,325.00

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(720,329

)

$

(135,725

)

$

(584,604

)

44

 

Net Profit (Loss) Before Federal & State Taxes

 

$

(610,624

)

$

(135,725

)

7,678

 

1,000

 

(6,678

)

45

 

Federal & State Income Taxes

 

9,644

 

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(728,007

)

$

(136,725

)

$

(591,282

)

46

 

Net Profit (Loss)

 

$

(620,268

)

$

(136,725

)

 

Attach an Explanation of Variance to Statement of Operations (For variances greater than +/- 10% only):

 


 

 

 

BALANCE SHEET

 

 

 

 

 

 

 

(General Business Case)

 

 

 

 

 

 

 

For the Month Ended

 

06/30/09

 

 

 

 

Assets

 

From Schedules

 

Market Value

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Cash and cash equivalents - unrestricted

 

 

 

$

386

 

2

 

Cash and cash equivalents - restricted

 

 

 

 

 

3

 

Accounts receivable (net)

 

A

 

 

 

4

 

Inventory

 

B

 

 

 

5

 

Prepaid expenses

 

 

 

$

47,964

 

6

 

Professional retainers

 

 

 

3,785

 

7

 

Other:

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 

Total Current Assets

 

 

 

52,135

 

 

 

 

 

 

 

 

 

 

 

Property and Equipment (Market Value)

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

Real property

 

C

 

$

460,769

 

11

 

Machinery and equipment

 

D

 

 

 

12

 

Furniture and fixtures

 

D

 

 

 

13

 

Office equipment

 

D

 

 

 

14

 

Leasehold improvements

 

D

 

 

 

15

 

Vehicles

 

D

 

 

 

16

 

Other:

 

 

 

 

 

17

 

 

 

 

 

 

 

18

 

 

 

 

 

 

 

19

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

Total Property and Equipment

 

 

 

$

460,769

 

 

 

 

 

 

 

 

 

 

 

Other Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

22

 

Loans to shareholders

 

 

 

 

 

23

 

Loans to affiliates

 

I

 

$

2,910,686

 

24

 

Loans and advances, secured by DOT, net of allowances (Note 2)

 

J

 

25,605,350

 

25

 

Investment in Real Estate Owned, net of allowances (Note 3)

 

K

 

41,071,052

 

26

 

Investment in affiliate

 

L

 

—

 

27

 

Accounts Receivable

 

M

 

$

2,824,161

 

 

 

 

 

 

 

 

 

28

 

Total Other Assets

 

 

 

$

72,411,249

 

 

 

 

 

 

 

 

 

29

 

Total Assets

 

 

 

$

72,924,153

 

 

NOTE:

 

 

 

 

Indicate the method used to estimate the market value of assets (e.g., appraisals; familiarity with comparable market prices, etc.) and the date the value was determined.

 

 

 

Note 2:

 

Scheduled Values for Loans and advances secured by DOT are based on the face amounts of the loans, taking into account the most recent available appraisals and internal valuations, and may include adjustment for litigation or foreclosure action risk contingencies.

 

 

 

Note 3:

 

When property is acquired (Real Estate Owned), any excess of the carrying value of loan over the net realizable value of property is charged against the allowance for loan losses. Following foreclosure, valuations are performed quarterly with any subsequent writedowns recorded as a separate valuation allowance and charged to other operating expenses. Collateral values are based on results of annual appraisals, further subject to valuations derived by internal analytic model calculations.

 


 

Liabilities and Equity

(General Business Case)

 

Liabilities From Schedules

 

 

 

 

 

 

 

Post-Petition

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

30

 

Salaries and wages

 

 

 

 

 

31

 

Payroll taxes

 

 

 

 

 

32

 

Real and personal property taxes

 

 

 

 

 

33

 

Income taxes

 

 

 

 

 

34

 

Sales taxes

 

 

 

 

 

35

 

Notes payable (short term)

 

 

 

$

11,084,077

 

36

 

Accounts payable (trade)

 

A

 

$

1,491,782

 

37

 

Real property lease arrearage

 

 

 

 

 

38

 

Personal property lease arrearage

 

 

 

 

 

39

 

Accrued professional fees

 

 

 

$

287,789

 

 

 

 

 

 

 

 

 

40

 

Current portion of long-term post-petition debt (due within 12 months)

 

 

 

 

 

 

 

 

 

 

 

 

 

41

 

Other:       Service Fee Payable

 

 

 

$

38,794

 

 

 

 

 

 

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

Total Current Liabilities

 

 

 

$

12,902,442

 

45

 

Long-Term Post-Petition Debt, Net of Current Portion

 

 

 

 

 

46

 

Total Post-Petition Liabilities

 

 

 

$

12,902,442

 

 

 

 

 

 

 

 

 

 

 

Pre-Petition Liabilities (allowed amount)

 

 

 

 

 

 

 

 

 

 

 

 

 

47

 

Secured claims

 

F

 

$

20,321,658

 

 

 

 

 

 

 

 

 

48

 

Priority unsecured claims

 

F

 

 

 

 

 

 

 

 

 

 

 

49

 

General unsecured claims

 

F

 

$

1,593,715

 

50

 

Total Pre-Petition Liabilities

 

 

 

21,915,373

 

51

 

Total Liabilities

 

 

 

$

34,817,815

 

 

Equity (Deficit)

 

 

 

 

 

52

 

Retained Earnings/(Deficit) at time of filing

 

 

 

$

(1,274,838

)

53

 

Capital Stock

 

 

 

 

 

54

 

Additional paid-in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

55

 

Cumulative profit/(loss) since filing of case

 

 

 

(620,268

)

 

 

 

 

 

 

 

 

56

 

Post-petition contributions/(distributions) or (draws)

 

 

 

 

 

57

 

Members’ Capital (Note 5)

 

 

 

40,001,444

 

58

 

Market value adjustment (Note 6)

 

 

 

—

 

59

 

Total Equity (Deficit)

 

 

 

$

38,106,338

 

60

Total Liabilities and Equity (Deficit)

 

 

 

$

72,924,153

 

 

Note 5:

 

Non-recorded liability

 

 

 

Note 6:

 

Members’ Capital is recorded net of market value adjustments as described in Notes 1, 2, 3, and 4 as required by GAAP. The total of fair value adjustments for loans and REO is $26,655,471.

 


 

SCHEDULES TO THE BALANCE SHEET

(General Business Case)

 

Schedule A

Accounts Receivable and (Net) Payable

 

Receivables and Payables Agings

 

Accounts Receivable
[Pre and Post Petition]

 

Accounts Payable
[Post Petition]

 

Past Due
Post Petition Debt

 

0 -30 Days

 

 

 

$

152,300

 

 

 

31-60 Days

 

 

 

$

146,260

 

 

 

61-90 Days

 

 

 

$

1,193,222

 

$

1,339,482

 

91+ Days

 

 

 

 

 

 

 

Total accounts receivable/payable

 

$

0

 

$

1,491,782

 

 

 

Allowance for doubtful accounts

 

 

 

 

 

 

 

Accounts receivable (net)

 

$

0

 

 

 

 

 

 

Schedule B

Inventory/Cost of Goods Sold

 

Types and Amount of Inventory(ies)

 

Inventory(ies)
Balance at
End of Month

 

Cost of Goods Sold

 

 

 

 

 

 

 

Inventory Beginning of Month

 

 

 

 

 

 

 

Add -

 

 

 

Retail/Restaurants -

 

 

 

Net purchase

 

 

 

Product for resale

 

 

 

Direct labor

 

 

 

 

 

 

 

Manufacturing overhead

 

 

 

Distribution -

 

 

 

Freight in

 

 

 

Products for resale

 

 

 

Other:

 

 

 

 

 

 

 

 

 

 

 

Manufacturer -

 

 

 

 

 

 

 

Raw Materials

 

 

 

 

 

 

 

Work-in-progress

 

 

 

Less -

 

 

 

Finished goods

 

 

 

Inventory End of Month

 

 

 

 

 

 

 

Shrinkage

 

 

 

Other - Explain

 

 

 

Personal Use

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

$

0

 

TOTAL

 

$

0

 

 

 

 

 

 

 

 

 

 

 

 

 

Method of Inventory Control

 

 

 

Inventory Valuation Methods

 

 

 

Do you have a functioning perpetual inventory system?

 

Indicate by a checkmark method of inventory used.

 

                   Yes o     No o

 

 

 

 

 

 

 

How often do you take a complete physical inventory?

 

Valuation methods -

 

 

 

 

 

 

 

 

FIFO cost

o

 

 

 

Weekly

o

 

 

 

LIFO cost

o

 

 

 

Monthly

o

 

 

 

Lower of cost or market

o

 

 

 

Quarterly

o

 

 

 

Retail method

o

 

 

 

Semi-annually

o

 

 

 

Other

o

 

 

 

Annually

o

 

 

 

Explain

 

 

 

 

Date of last physical inventory was

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date of next physical inventory is

 

 

 

 

 

 

 

 


 

Schedule C
Real Property

 

Description

 

Cost

 

Market Value

 

Tres Tigres Storage Facility, Sand City, CA
(recorded net of Senior Lien $2,146,152)

 

$

460,769

 

$

460,769

 

 

 

 

 

 

 

Total

 

$

460,769

 

$

460,769

 

 

Schedule D
Other Depreciable Assets

 

Description

 

Cost

 

Market Value

 

Machinery & Equipment -

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

0

 

$

0

 

 

 

 

 

 

 

Furniture & Fixtures -

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

0

 

$

0

 

 

 

 

 

 

 

Office Equipment -

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

0

 

$

0

 

 

 

 

 

 

 

Leasehold Improvements -

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

0

 

$

0

 

 

 

 

 

 

 

Vehicles -

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

0

 

$

0

 

 


 

Schedule E

Aging of Post-Petition Taxes

(As of End of the Current Reporting Period)

 

Taxes Payable

 

0-30 Days

 

31-60 Days

 

61-90 Days

 

91+ Days

 

Total

 

Federal

 

 

 

 

 

 

 

 

 

 

 

Income Tax Withholding

 

 

 

 

 

 

 

 

 

$

0

 

FICA - Employee

 

 

 

 

 

 

 

 

 

$

0

 

FICA - Employer

 

 

 

 

 

 

 

 

 

$

0

 

Unemployment (FUTA)

 

 

 

 

 

 

 

 

 

$

0

 

Income

 

 

 

 

 

 

 

 

 

$

0

 

Other (Attach List)

 

 

 

 

 

 

 

 

 

$

0

 

Total Federal Taxes

 

$

0

 

$

0

 

$

0

 

$

0

 

$

0

 

State and Local

 

 

 

 

 

 

 

 

 

 

 

Income Tax Withholding

 

 

 

 

 

 

 

 

 

$

0

 

Unemployment (UT)

 

 

 

 

 

 

 

 

 

$

0

 

Disability Insurance (DI)

 

 

 

 

 

 

 

 

 

$

0

 

Empl. Training Tax (ETT)

 

 

 

 

 

 

 

 

 

$

0

 

Sales

 

 

 

 

 

 

 

 

 

$

0

 

Excise

 

 

 

 

 

 

 

 

 

$

0

 

Real property

 

 

 

 

 

 

 

 

 

$

0

 

Personal property

 

 

 

 

 

 

 

 

 

$

0

 

Income

 

$

12,590

 

 

 

 

 

 

 

$

12,590

 

Other (Attach List)

 

 

 

 

 

 

 

 

 

$

0

 

Total State & Local Taxes

 

$

12,590

 

$

0

 

$

0

 

$

0

 

$

12,590

 

Total Taxes

 

$

12,590

 

$

0

 

$

0

 

$

0

 

$

12,590

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule F
Pre-Petition Liabilities

List Total Claims For Each Classification -

 

 

 

 

 

Claimed
Amount

 

Allowed
Amount (b)

 

 

 

Secured claims (a)

 

 

 

 

 

$

20,321,658

 

$

20,321,658

 

 

 

Priority claims other than taxes

 

 

 

 

 

 

 

 

 

 

 

Priority tax claims

 

 

 

 

 

 

 

 

 

 

 

General unsecured claims

 

 

 

 

 

$

1,593,715

 

$

1,593,715

 

 

 

 

(a)

 

List total amount of claims even it under secured.

(b)

 

Estimated amount of claim to be allowed after compromise or litigation. As an example, you are a defendant in a lawsuit alleging damage of $10,000,000 and a proof of claim is filed in that amount. You believe that you can settle the case for a claim of $3,000,000. For Schedule F reporting purposes you should list $10,000,000 as the Claimed Amount and $3,000,000 as the Allowed Amount.

 

Schedule G
Rental Income Information
Not applicable to General Business Cases

 

Schedule H
Recapitulation of Funds Held at End of Month

 

 

 

Account 1

 

Account 2

 

Account 3

 

Account 4

 

 

 

Bank

 

Wells Fargo

 

 

 

 

 

 

 

 

 

Account Type

 

 

 

 

 

 

 

 

 

 

 

Account No.

 

412-1887244

 

 

 

 

 

 

 

 

 

Account Purpose

 

DIP

 

 

 

 

 

 

 

 

 

Balance, End of Month

 

$

386

 

 

 

 

 

 

 

 

 

Total Funds on Hand for all Accounts

 

$

386

 

 

 

 

 

 

 

 

 

 

Attach copies of the month end bank statement(s), reconciliation(s), and the check register(s) to the Monthly Operating Report.

 


 

Schedule I

Loans to affiliates

(As of End of the Current Reporting Period)

 

Affiliate

 

Total

 

 

 

 

 

California Mortgage and Realty, Inc - Note

 

2,240,541

 

California Mortgage and Realty, Inc - Note

 

670,145

 

 

 

 

 

Total

 

2,910,686

 

 

line 23

 


 

Schedule J

Loans and Advances, excluding HDC

(As of End of the Current Reporting Period)

 

 

 

 

 

Interest Income

 

 

 

 

 

 

 

 

 

and fee not

 

Allowance

 

 

 

 

 

Legal

 

recognized per

 

for

 

 

 

Loan Number

 

Balance (Note 1)

 

GAAP

 

Loan Losses

 

Book Balance

 

 

 

 

 

 

 

 

 

 

 

05-018

 

473

 

(473

)

 

 

—

 

05-020

 

889

 

—

 

 

 

889

 

05-024

 

226,500

 

(13,750

)

 

 

212,750

 

05-032

 

1,867

 

—

 

 

 

1,867

 

05-052B

 

10,939,137

 

(10,939,137

)

—

 

—

 

05-058

 

702,561

 

(135,288

)

(237,000

)

330,273

 

05-061A

 

13,078

 

—

 

 

 

13,078

 

05-061B

 

1,180,840

 

(223,459

)

 

 

957,381

 

05-061C

 

14,702,992

 

(2,757,716

)

(8,000,000

)

3,945,276

 

05-062

 

78,789

 

(78,789

)

 

 

—

 

05-068

 

74,881

 

(74,881

)

 

 

—

 

06-013

 

49,744

 

(863

)

 

 

48,881

 

06-023

 

6,339,792

 

(65,403

)

 

 

6,274,389

 

06-027

 

882,128

 

(161,840

)

(342,000

)

378,288

 

06-032

 

3,213,484

 

(120,474

)

(481,000

)

2,612,010

 

06-038A

 

54,154,567

 

(54,154,567

)

 

 

—

 

06-038B

 

20,325

 

(6,825

)

 

 

13,500

 

06-038C (Note 2)

 

3,247,197

 

(3,068,614

)

392,518

 

571,101

 

06-044

 

13,134

 

(111

)

(5,000

)

8,023

 

06-057

 

1,671,337

 

(218,250

)

(337,000

)

1,116,087

 

06-058

 

14,743,480

 

(1,982,160

)

(2,734,000

)

10,027,320

 

06-071B

 

751

 

146

 

 

 

897

 

07-004 (Note 3)

 

4,280,697

 

(1,023,601

)

(3,257,096

)

Unknown

 

07-017

 

104,679

 

(6,679

)

(98,000

)

—

 

08-012

 

477,274

 

(934

)

 

 

476,340

 

Loan Loss Reserve

 

 

 

 

 

(1,383,000

)

(1,383,000

)

 

 

 

 

 

 

 

 

 

 

Total

 

117,120,596

 

(75,033,668

)

(16,481,578

)

25,605,350

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

line 24

 

 

Note:      Scheduled Values for Loans and advances secured by DOT are based on the face amounts of the loans, taking into account the most recent available appraisals and internal valuations, and may include adjustment for litigation or foreclosure action risk contingencies.

 

Note 1:   Refers to legal balance adjusted for REO principal and interest not recorded on a GAAP basis.

Note 2:   Negative allowance for loan losses reflects increase in Brisbane Quarry property value due to discovery of income potential of the operating quarry.

Note 3:   Canpartners, a joint lien holder with CMR Mortgage Fund, LLC (“Debtor”), has foreclosed on the membership interests of the borrower/landowner and has a foreclosure sale pending on the real estate that is security for the loan. Canpartners contends that the foreclosures will result in the Debtor losing its lien on the real property. As a result, the loan is being reported at a zero value, although a lawsuit brought by the Debtor seeks to preserve its lien rights in the property and to seek damages against Canpartners. Pending the outcome of the lawsuit, the bankruptcy court has ordered that Canpartners cannot sell or encumber the property without further order of the court. The Debtor’s future operating reports will re-establish a value for this note should it prevail in the litigation.

 


 

Schedule K

Investment in Real Estate Owned

(As of End of the Current Reporting Period)

 

 

 

Appraisal Date

 

Acquisition Value

 

Allowance

 

Total

 

 

 

 

 

 

 

 

 

 

 

Investment in 21 Mira Mesa

 

6/7/2007

 

8,892,904

 

(8,800,624

)

92,280

 

Investment in 3202 Thirty-Fifth Ave, LLC

 

9/17/2007

 

20,916

 

(14,340

)

6,576

 

Investment in 2 Aster LLC

 

1/24/2008

 

3,830

 

(1,903

)

1,927

 

Investment in 15 SSFDEV, LLC

 

4/9/2008

 

3,553,505

 

(47,259

)

3,506,246

 

Investment in 2 UNER, LLC

 

4/9/2008

 

3,226,760

 

(930,000

)

2,296,760

 

Investment in 3 CCAM, LLC

 

4/9/2008

 

44,805

 

—

 

44,805

 

Investment in Hamilton Creek, LLC

 

7/7/2008

 

1,437,373

 

(554,328

)

883,045

 

Investment in 5 Casa Grande Land, LLC

 

9/16/2008

 

355,685

 

(340,439

)

15,246

 

Investment in Wheatland Holdings, LLC

 

10/14/2008

 

34,224,167

 

—

 

34,224,167

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

51,759,945

 

(10,688,893

)

41,071,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

line 25

 

 

Note:

 

When property is acquired (Real Estate Owned), any excess of the carrying value of loan over the net realizable value of property is charged against the allowance for loan losses. Following foreclosure, valuations are performed quarterly with any subsequent writedowns recorded as a separate valuation allowance and charged to other operating expenses. Collateral values are based on results of annual appraisals, further subject to valuations derived by internal analytic model calculations.

 


 

Schedule M

Accounts Receivable

(As of End of the Current Reporting Period)

 

 

 

Total

 

 

 

 

 

CMR Fund I, LLC

 

1,216,197

 

CMR Fund III, LLC

 

1,415,746

 

First Street Commercial Mortgage Fund

 

152,127

 

721 5th Street, LLC

 

228

 

1007 University, LLC

 

3,144

 

2 Antioch, LLC

 

144

 

3202 Thirty-Fifth Ave, LLC

 

102

 

5 Casa Grande, LLC

 

36,473

 

 

 

 

 

Total

 

2,824,161

 

 

 

 

 

 

 

line 27

 

 


 

STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

Increase/(Decrease) in Cash and Cash Equivalents

For the Month Ended 06/30/09

 

 

 

 

 

Actual
Current Month

 

Cumulative
(Case to Date)

 

 

 

Cash Receipts

 

 

 

 

 

1

 

Rent/Leases Collected

 

 

 

 

 

2

 

Cash Received from Sales

 

$

0

 

$

323,430

 

3

 

Interest Received

 

$

0

 

$

7,784

 

4

 

Borrowings

 

$

6,500

 

$

6,500

 

5

 

Funds from Shareholders, Partners, or Other Insiders

 

 

 

 

 

6

 

Capital Contributions

 

$

0

 

$

0

 

7

 

Deficiency recovery - 2006 Trustee Sales - Ross

 

$

0

 

 

 

8

 

Payments on Advances

 

$

0

 

$

52,296

 

9

 

Transfer from FENB Account

 

$

0

 

$

36,690

 

10

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12

 

Total Cash Receipts

 

$

6,500

 

$

426,700

 

 

 

 

 

 

 

 

 

 

 

Cash Disbursements

 

 

 

 

 

13

 

Payments for Inventory

 

 

 

 

 

14

 

Selling

 

 

 

 

 

15

 

Administrative

 

$

6,737

 

$

21,176

 

16

 

Capital Expenditures

 

 

 

 

 

17

 

Principal Payments on Debt

 

 

 

 

 

18

 

Interest Paid

 

$

0

 

$

0

 

 

 

Rent/Lease:

 

 

 

 

 

19

 

Personal Property

 

 

 

 

 

20

 

Real Property

 

 

 

 

 

 

 

Amount Paid to Owner(s)/Officer(s)

 

 

 

 

 

21

 

Salaries

 

 

 

 

 

22

 

Draws

 

 

 

 

 

23

 

Commissions/Royalties

 

 

 

 

 

24

 

Expense Reimbursements

 

 

 

 

 

25

 

Other

 

 

 

 

 

26

 

Salaries/Commissions (less employee withholding)

 

 

 

 

 

27

 

Management Fees

 

 

 

 

 

 

 

Taxes:

 

 

 

 

 

28

 

Employee Withholding

 

 

 

 

 

29

 

Employer Payroll Taxes

 

 

 

 

 

30

 

Real Property Taxes

 

 

 

 

 

31

 

Other Taxes

 

 

 

 

 

32

 

Other Cash Outflows:

 

 

 

 

 

33

 

Wells Fargo Foothill Payment

 

$

0

 

$

81,707

 

34

 

Contribution to Hamilton Creek

 

$

0

 

$

323,431

 

35

 

 

 

 

 

 

 

36

 

 

 

 

 

 

 

37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38

 

Total Cash Disbursements:

 

$

6,737

 

$

426,314

 

 

 

 

 

 

 

 

 

39

 

Net Increase (Decrease) in Cash

 

$

(237

)

$

386

 

 

 

 

 

 

 

 

 

40

 

Cash Balance, Beginning of Period

 

$

623

 

$

0

 

 

 

 

 

 

 

 

 

41

 

Cash Balance, End of Period

 

$

386

 

$

386