8-K

UNITED STATES

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: July 31, 2009

(Date of Earliest Event Reported)

Commission file number: 1-3203

CANAL CORPORATION

(Exact name of registrant as specified in its charter)

Virginia	54-0166880
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1021 East Cary Street
Richmond, Virginia	23219
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 804-697-1000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 8.01. OTHER EVENTS

Modified SEC Reporting

As previously disclosed, Canal Corporation and its U.S. operating subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the Eastern District of Virginia in Richmond (the “Bankruptcy Court”) on December 29, 2008, seeking relief under the provisions of Chapter 11 of the United States Bankruptcy Code. During the pendency of the bankruptcy proceedings, Canal Corporation has adopted a modified reporting program with respect to its reporting obligations under the federal securities laws. In lieu of filing annual reports on Form 10-K and quarterly reports on Form 10-Q, Canal Corporation will file current reports on Form 8-K to disclose material financial information, including copies of Canal Corporation’s monthly operating reports required to be submitted to the Bankruptcy Court and material events relating to the bankruptcy proceedings. Canal Corporation believes that it meets the conditions for modified reporting set forth in Exchange Act Release No. 9660 (the “Release”), dated June 30, 1972, and that its modified reporting program is consistent with the protection of its investors as set forth in the Release.

Monthly Operating Reports

On July 31, 2009, Canal Corporation filed with the Bankruptcy Court its unaudited monthly operating reports for the period June 1, 2009 to June 28, 2009 (the “Monthly Reports”). Copies of the Monthly Reports are attached hereto as Exhibit 99.1 and are incorporated herein by reference.

Canal Corporation cautions readers not to place undue reliance upon the information contained in the Monthly Reports. Information in the Monthly Reports reflects only information related to Canal Corporation and its U.S. debtor operating subsidiaries and does not include information for the entire consolidated group. The Monthly Reports contain financial statements and other financial information that have not been audited or reviewed by independent accountants and may be subject to further review and potential adjustments. The Monthly Reports are in a format prescribed by applicable bankruptcy laws, were prepared solely for the purpose of complying with the monthly reporting requirements in Canal Corporation’s bankruptcy proceedings and contain information for periods that are shorter or different from those contained in periodic reports filed with the Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended. The information set forth in the Monthly Reports should not be viewed as representative of Canal Corporation’s expected operating results for future periods.

The Monthly Reports are, and any future such monthly operating reports will be, furnished for informational purposes only and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor will such information be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act, except as expressly set forth by specific reference in such a filing.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

99.1 Monthly Operating Reports for the period June 1, 2009 to June 28, 2009

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 thereunto duly authorized.

	CANAL CORPORATION
	(Registrant)
Date: August 3, 2009	BY:	/s/ J. P. Causey Jr.
		J. P. Causey Jr.
		Executive Vice President, Secretary & General Counsel

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Monthly Operating Reports for the period June 1, 2009 to June 28, 2009

EX-99.1

Exhibit 99.1

CASE NAME: CANAL CORPORATION	ACCRUAL BASIS
CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660
JUDGE: DOUGLAS O. TICE JR.

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

RICHMOND DIVISION

MONTHLY OPERATING REPORT

MONTH ENDING: June 1, 2009 To June 28, 2009

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-7A) 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:

/s/ J.P. CAUSEY JR	EXECUTIVE VICE PRESIDENT
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY	TITLE
J.P. CAUSEY JR	JULY 30, 2009
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ KATHRYN L. TYLER	ASSISTANT CONTROLLER
ORIGINAL SIGNATURE OF PREPARER	TITLE
KATHRYN L. TYLER	JULY 30, 2009
PRINTED NAME OF PREPARER	DATE

Page 1 of 1

CASE NAME: CANAL CORPORATION ACCRUAL BASIS-1

CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660

BALANCE SHEET

	12/29/2008			2/1/2009			3/1/2009			3/29/2009			4/30/2009			5/31/2009			6/28/2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,469,115		$	2,158,981		$	947,670		$	1,140,352		$	456,614		$	10,558,731		$	10,201,730
Accounts receivable 1		6,980,430			7,770,578			7,857,279			8,459,192			95,408,006			2,418,885			2,020,865
Inventories		3,838,065			3,664,000			3,660,000			3,685,000			—			—			—
Prepaid expenses and other current assets		828,719			669,773			1,624,976			1,425,984			931,506			720,545			665,871
Income taxes receivable		2,634,783			2,634,783			2,634,783			2,634,783			2,634,783			2,634,783			2,634,783
TOTAL CURRENT ASSETS		15,751,112			16,898,115			16,724,708			17,345,310			99,430,908			16,332,944			15,523,249
Gross property, plant and equipment:		30,875,645			30,875,761			31,368,761			31,368,761			1,355,325			1,355,325			1,355,325
Less accumulated depreciation		(18,281,155	)		(18,505,161	)		(18,730,176	)		(18,962,413	)		(1,193,804	)		(1,214,208	)		(1,234,610	)
Net property, plant and equipment		12,594,490			12,370,600			12,638,586			12,406,349			161,521			141,117			120,715
Investment2		609,958,833			609,452,228			609,452,228			608,877,754			4,722,402			4,026,322			3,401,392
Net Intercompany receivable2,3		380,411,592			364,771,130			362,018,963			368,163,677			—			—			—
Other assets		48,850,022			45,911,887			43,305,421			42,914,089			32,126,393			31,835,864			31,868,923
TOTAL ASSETS		1,067,566,056			1,049,403,960			1,044,139,906			1,049,707,178			136,441,224			52,336,247			50,914,279
CURRENT LIABILITIES
Accounts payable		—			1,041,104			239,496			1,168,385			119,728			137,757			57,167
Accrued expenses		—			2,264,062			3,886,832			4,275,638			6,806,139			1,223,155			844,120
TOTAL CURRENT LIABILITIES		—			3,305,166			4,126,328			5,444,023			6,925,867			1,360,912			901,287
LIABILITIES NOT SUBJECT TO COMPROMISE		—			3,305,166			4,126,328			5,444,023			6,925,867			1,360,912			901,287
LIABILITIES SUBJECT TO COMPROMISE		610,078,052			596,985,915			598,863,077			599,519,013			491,973,646			436,785,319			439,742,743
STOCKHOLDERS’ EQUITY
Common stock		20,639,605			20,485,638			20,318,975			20,318,975			20,238,486			20,238,486			20,238,486
Additional paid-in capital		370,720,184			370,973,216			371,119,572			371,433,488			98,740,698			98,740,698			98,740,698
Accumulated other comprehensive income (loss)		(107,066,962	)		(105,822,347	)		(107,408,674	)		(107,252,262	)		(46,594,889	)		(46,320,554	)		(46,142,364	)
Retained earnings		173,195,177			163,476,372			157,120,627			160,243,942			(434,842,584	)		(458,468,614	)		(462,566,571	)
TOTAL STOCKHOLDERS’ EQUITY		457,488,004			449,112,878			441,150,500			444,744,142			(362,458,289	)		(385,809,984	)		(389,729,751	)
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$	1,067,566,056		$	1,049,403,960		$	1,044,139,906		$	1,049,707,178		$	136,441,224		$	52,336,247		$	50,914,279

1. Accounts receivable include $3,461,235, $3,338,463, $3,291,694, $2,807,186, 2,418,885 and $2,020,865 of non trade receivables, deposits, advances and other miscellaneous receivables for January, February, March, April, May and June respectively. April balance also reflects receivables of $92,608,820 related to the sale that closed April 30, 2009

2. The Company sold substantially all of its operating business effective April 30, 2009 resulting in the elimination of all I/Co and investment balances in non-debtor subsidiaries

3. For January, February and March, movement in intercompany receivable balance due to changes in foreign currency exchange rates and ordinary course intercompany transactions with non-debtor related entities, primarily Chesapeake PLC, UK Holdings Limited and Chesapeake Asia Pacific Ltd.

Page 1 of 1

CASE NAME: CANAL CORPORATION ACCRUAL BASIS-2

CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660

INCOME STATEMENT

	2/1/2009			3/1/2009			3/29/2009			4/30/2009			5/31/2009			6/28/2009
Net sales	$	4,196,944		$	3,707,000		$	4,267,000		$	4,788,000		$	—		$	—
Cost of products sold		4,066,668			3,432,000			3,921,000			4,538,000			—			—
Selling, general and administrative expenses		1,998,580			1,953,517			2,204,262			2,242,369			592,107			493,181
Gain (loss) on foreign currency translation		(25,988	)		186,882			(76,697	)		(599,023	)		(20,594,933	)		(1,520,359	)
Other income (loss), net		(17,943	)		(20	)		(21,402	)		(6,048	)		(15,449	)		(465	)
Operating loss		(1,912,235	)		(1,491,655	)		(1,956,361	)		(2,597,440	)		(21,202,489	)		(2,014,005	)
Loss on divestiture		—			—			—			591,236,706			338,961			—
Reorganization costs and other financing costs		3,767,001			1,101,363			1,706,766			59,249			15,215			136,808
Interest expense, net		6,291,587			5,557,027			3,249,769			3,648,701			1,915,894			1,794,950
Loss from continuing operations		(11,970,822	)		(8,150,046	)		(6,912,897	)		(597,542,096	)		(23,472,559	)		(3,945,763	)
Intercompany income, net		(2,395,372	)		(1,939,622	)		(3,157,543	)		(2,588,980	)		—			—
Loss from continuing operations before taxes		(9,575,450	)		(6,210,424	)		(3,755,354	)		(594,953,116	)		(23,472,559	)		(3,945,763	)
Tax expense		7,880			9,014			8,861			1,861			3,654			3,654
Loss before discontinued operations		(9,583,330	)		(6,219,438	)		(3,764,215	)		(594,954,977	)		(23,476,213	)		(3,949,417	)
Loss (income) from discontinued operations, net of tax		136,752			136,752			(6,887,529	)		131,548			149,818			148,540
Net (loss) income	$	(9,720,082	)	$	(6,356,190	)	$	3,123,314		$	(595,086,525	)	$	(23,626,031	)	$	(4,097,957	)

Page 1 of 1

CASE NAME: CANAL CORPORATION ACCRUAL BASIS-3

CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660

CASH RECEIPTS AND DISBURSEMENTS

	YTD1
	2/1/2009			3/1/2009			3/29/2009			4/30/2009			5/31/2009			6/28/2009
Operating activities:
Net loss	$	(9,917,347	)	$	(16,273,537	)	$	(13,150,223	)	$	(608,236,748	)	$	(631,862,778	)	$	(635,960,735	)
Depreciation and amortization		369,015			729,029			1,096,266			1,475,836			1,496,240			1,516,642
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Accounts receivable, net		(414,551	)		(501,253	)		(1,103,165	)		(93,434,979	)		(445,858	)		(47,838	)
Inventories		135,000			139,000			114,000			516,000			516,000			516,000
Other assets		168,409			(786,794	)		(587,802	)		(286,324	)		(75,364	)		(20,689	)
Accounts payable and accrued expenses		(6,132,368	)		(1,310,385	)		2,480,427			2,362,951			(3,682,855	)		(1,999,876	)
Income taxes payable		—			—			—			—			—
Loss on Divestiture		—			—			—			681,379,250			606,471,427			606,471,427
Other		3,174,529			5,692,364			(995,003	)		138,179			522,947			2,107,827
Net cash provided by operating activities		(12,617,313	)		(12,311,575	)		(12,145,499	)		(16,085,835	)		(27,060,241	)		(27,417,242	)
Investing activities:
Purchases of property, plant and equipment		—			—			(493,000	)		(498,000	)		(498,000	)		(498,000	)
Divestitures		—			—			—			—			96,076,462			96,076,462
Proceeds from sales of property, plant and equipment		—			—			—			2,000			2,000			2,000
Other		—			—			—			—			—			—
Net cash (used in) provided by investing activities		—			—			(493,000	)		(496,000	)		95,580,462			95,580,462
Financing activities:
Net borrowings on credit lines		—			—			—			—			—			—
Payments on long-term debt		—			—			—			—			(75,000,000	)		(75,000,000	)
Proceeds from long-term debt		—			—			—			—			—			—
Intercompany		5,452,984			3,935,933			4,455,539			7,715,137			7,715,198			7,715,198
Other		—			—			—			—			—			—
Net cash provided by (used in) financing activities		5,452,984			3,935,933			4,455,539			7,715,137			(67,284,802	)		(67,284,802	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			—			—			(134	)		(134	)		(134	)
Increase (decrease) in cash and cash equivalents		(7,164,330	)		(8,375,642	)		(8,182,960	)		(8,866,698	)		1,235,419			878,418
Cash and cash equivalents at beginning of Year		9,323,312			9,323,312			9,323,312			9,323,312			9,323,312			9,323,312
Cash and cash equivalents at end of Period	$	2,158,981		$	947,670		$	1,140,352		$	456,614		$	10,558,731		$	10,201,730

1. Cashflow statement based on Company’s fiscal period from 12/28/08 through 3/29/09, which includes net loss of $197,265 and net cash outflows of approximately $8 million from Dec 29, 2008, which were pre-petition.

Page 1 of 1

CASE NAME: CANAL CORPORATION ACCRUAL BASIS-4

CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660

ACCOUNTS RECEIVABLE AGING1		SCHEDULE AMOUNT	MONTH		MONTH		MONTH			MONTH		MONTH		MONTH
			JANUARY 2009		FEBRUARY 2009		MARCH 2009			APRIL 2009		MAY 2009		JUNE 2009
1.	0-30		$	3,368,106	$	3,387,728	$	4,728,441		$	—	$	—	$	—
2.	31-60			643,867		1,103,581		433,694			—		—		—
3.	61-90			185,241		27,507		(32,144	)		—		—		—
4.	91+			112,128				37,507			—		—		—
5.	TOTAL ACCOUNTS RECEIVABLE		$	4,309,343	$	4,518,816	$	5,167,498		$	—	$	—	$	—
6.	AMOUNT CONSIDERED UNCOLLECTIBLE			—		—
7.	ACCOUNTS RECEIVABLE (NET)		$	4,309,343	$	4,518,816	$	5,167,498		$	—	$	—	$	—

1. Does not include deposits/advances which are included in the balance sheet and miscellaneous receivables not recorded under the AR sub ledger. For April does not include receivable for the proceeds from the sale on 4/30/2009. Following the sale on 4/30/2009 the debtors have no trade receivables.

AGING OF POSTPETITION TAXES AND PAYABLES MONTH: 6/1/09-6/28/2009

TAXES PAYABLE		0-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
1.	FEDERAL	$	—	$	—	$	—	$	—	$	—
2.	STATE		—		—		—		—		—
3.	LOCAL		—		—		—		—		—
4.	OTHER (ATTACH LIST)		—		—		—		—		—
5.	TOTAL TAXES PAYABLE	$	—	$	—	$	—	$	—	$	—
6.	ACCOUNTS PAYABLE	$	56,567	$	—	$	600	$	—	$	57,167

STATUS OF POSTPETITION TAXES MONTH: 6/1/09-6/28/2009

		BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ OR ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1.	WITHHOLDING**	$	—	$	9,196	$	4,598	$	4,598
2.	FICA-EMPLOYEE**		—		4,012		2,006	$	2,006
3.	FICA-EMPLOYER**		—		4,012		2,006	$	2,006
4.	UNEMPLOYMENT		—					$	0
5.	INCOME		—					$	0
6.	OTHER (ATTACH LIST)		—					$	0
7.	TOTAL FEDERAL TAXES	$	—	$	17,220	$	8,610	$	8,610
STATE AND LOCAL
8.	WITHHOLDING	$	—	$	2,815	$	1,402	$	1,413
9.	SALES		—						—
10.	EXCISE		—						—
11.	UNEMPLOYMENT		—				—		—
12.	REAL PROPERTY		—						—
13.	PERSONAL PROPERTY		—						—
14.	OTHER (ATTACH LIST)		—						—
15.	TOTAL STATE & LOCAL	$	—	$	2,815	$	1,402	$	1,413
16.	TOTAL TAXES	$	—	$	20,035	$	10,012	$	10,023

* 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.

Page 1 of 1

CASE NAME: CANAL CORPORATION ACCRUAL BASIS-5

CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660

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:                        0    MONTH:         6/1/09-6/28/2009

BANK RECONCILIATIONS

A.  BANK:			Bank of America			Bank of America			Bank of America			Bank of America			Bank of America			Wilmington Trust
B.  ACCOUNT NUMBER:			4426474698			3359003343			3359003335			3359003350			0049 6189 8991			2881-0598
C.  PURPOSE (TYPE):			Concentration			AP Account			Payroll			AP Account			Deposit/ Wdrwl			Deposit/ Wdrwl
1.	BALANCE PER BANK STATEMENT	$	231,197		$	95,087		$	113,257		$	936		$	2,108		$	13,775
2.	ADD: TOTAL DEPOSITS NOT CREDITED
3.	SUBTRACT: OUTSTANDING CHECKS					(3	)					—			(1,333	)
4.	OTHER RECONCILING ITEMS		(12	)					(498	)		(936	)					—
5.	MONTH END BALANCE PER BOOKS		231,185			95,084			112,759			—			775			13,775
6.	NUMBER OF LAST CHECK WRITTEN		N/A			N/A			N/A			N/A			N/A			N/A
A.  BANK:			Wachovia			Wachovia			Wachovia			Wachovia			Wachovia
B.  ACCOUNT NUMBER:			2000044344937			2000044344953			2000042096355			2000042096368			2000028428497			TOTAL
C.  PURPOSE (TYPE):			Money Market			Money Market			Deposit/ Wdrwl			Deposit/ Wdrwl			Deposit/ Wdrwl
1.	BALANCE PER BANK STATEMENT	$	6,024,531		$	2,673,232		$	548,600		$	499,988		$	4,988		$	10,207,699
2.	ADD: TOTAL DEPOSITS NOT CREDITED																	—
3.	SUBTRACT: OUTSTANDING CHECKS								(7,513	)								(8,849	)
4.	OTHER RECONCILING ITEMS		(4,553	)		(2,004	)		10,383									2,380
5.	MONTH END BALANCE PER BOOKS		6,019,978			2,671,228			551,470			499,988			4,988			10,201,230
6.	NUMBER OF LAST CHECK WRITTEN		N/A			N/A			N/A			N/A			N/A			N/A
Note: Bank of America account 3359003368 (AP Account), Bank of America account 4426474672 (Deposit Account) and Bank of America account 4426474630 (Deposit Account) transferred to purchaser as part of 363 sale as of May 1, 2009.
INVESTMENT ACCOUNTS
BANK, ACCOUNT NAME & NUMBER
7.
8.
9.
10.
11.	TOTAL INVESTMENTS
BANK, ACCOUNT NAME & NUMBER								DATE OF PURCHASE			TYPE OF INSTRUMENT			PURCHASE PRICE			CURRENT VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS																	—

CASH
12.	CURRENCY ON HAND	$	500
13.	TOTAL CASH - END OF MONTH	$	10,201,730

Page 1 of 1

CASE NAME: CANAL CORPORATION ACCRUAL BASIS-6

CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660 MONTH:        6/1/09-6/28/2009

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. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS
NAME	TYPE OF PAYMENT	AMOUNT PAID		TOTAL PAID TO DATE
1.	See Appendix A
2.
3.
4.
5.
6. TOTAL PAYMENTS TO INSIDERS		$	—	$	—

PROFESSIONALS
NAME	DATE OF COURT ORDER AUTHORIZING PAYMENT	AMOUNT APPROVED		AMOUNT PAID		TOTAL PAID TO DATE		TOTAL INCURRED & UNPAID *
1. Alvarez & Marsal	6/12/2009	$	24,222	$	24,222	$	624,583	$	13,052
2. FTI Consulting					—		61,845
3. Goldman Sachs					—		4,142,218
4. Gordian Group LLC	6/11/2009		85,314		85,314		363,679		118,535
5. Greenberg Traurig, LLP	6/4/2009		45,432		45,432		1,048,223		41,286
6. Hammonds	6/12/2009		14,443		14,443		114,674		2,407
7. Hunton & Williams	6/4/2009		293,537		293,537		1,664,669		294,829
8. Ivins, Phillips, & Barker			15,657		15,657		58,117
9. Kekst & Company					—		7,513
10. Kurtzman Carson Consultants			46,827		46,827		349,389		18,415
11. Lowenstein & Sandler PC					—		21,426
12. Tavenner & Beran					—		—		15,109
13. Quarles & Brady					—		820,511		885,979
TOTAL PAYMENTS TO PROFESSIONALS		$	525,432	$	525,432	$	9,276,846	$	1,389,612

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED. INCURRED FEES ARE MANAGEMENT ESTIMATES.

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

NAME OF CREDITOR	SCHEDULED MONTHLY PAYMENTS DUE		AMOUNTS PAID DURING MONTH		TOTAL UNPAID POSTPETITION
2. James Center Property LLC						3,500
3. Ikon Leasing		7,447		7,447		—
3. Lanier Parking Solutions		821		821		1,040
4. Net Telcos
5. Pitney Bowes						769
TOTAL	$	8,268	$	8,268	$	5,309

Page 1 of 1

CASE NAME: CANAL CORPORATION APPENDIX A

CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660

PAYMENTS TO INSIDERS AND PROFESSIONALS

MONTH: 6/1/09-6/28/2009

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. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS
NAME	TYPE OF PAYMENT	Jan Amount Paid1		Feb Amount Paid		March Amount Paid		April Amount Paid		May Amount Paid		June Amount Paid		TOTAL PAID TO DATE
1. Alvarez & Marsal	Professional	$	—	$	—	$	279,364	$	186,116	$	134,882	$	24,222		624,584
2. Buchan, Brian J	BOD Fees		1,260		—		3,780		5,600		1,269		2,585		14,494
3. Causey Jr, John Paul	Payroll		36,500		24,333		24,333		24,333		—		—		109,500
4. Causey Jr, John Paul	Expense Reimb		—		267		1,719		45		202		555		2,787
5. Decaluwe, Rafael C	BOD Fees		4,520		7,322		3,480		9,096		1,577		4,370		30,365
6. Fell, Sir David	BOD Fees		9,968		5,626		1,104		23,770		1,200		—		41,668
7. Formacek, Candace C.	Payroll		23,125		15,417		15,417		15,417		—		—		69,375
8. Formacek, Candace C.	Expense Reimb		—		521		—		2,351		33		—		2,905
9. Fowden, Jerry	BOD Fees		1,260		—		—		5,600		1,260		—		8,120
10. FTI Consulting	Professional		—		—		61,845		—		—		—		61,845
11. Goldman Sachs	Professional		—		—		—		—		4,142,218		—		4,142,218
12. Gordian Group	Professional		—		—		65,584		85,597		127,184		85,314		363,679
13. Greenberg Traurig	Professional		—		—		329,162		219,314		454,315		45,432		1,048,223
14. Hammonds LLP	Professional		—		—		44,502		27,730		27,999		14,443		114,674
15. Hellyar, Mary Jane	BOD Fees		1,800		2,744		35		8,000		1,800		—		14,379
16. Henderson, Thomas	Expense Reimb		1,151		1,766		4,087		2,654		—		—		9,658
17. Henderson, Thomas M	Payroll		25,000		16,667		16,667		16,667		—		—		75,000
18. Henfling, Robin	Payroll		33,086		20,433		20,433		20,433		—		—		94,386
19. Henfling, Robin	Expense Reimb		—		1,895		4,758		1,577		—		—		8,231
20. Hockett, Vincent W.	Payroll		33,125		22,083		22,083		22,083		—		—		99,375
21. Hockett, Vincent W.	Expense Reimb		—		50		2,405		—		—		—		2,455
22. Hunton & Williams LLP	Professional		—		—		751,574		—		619,558		293,537		1,664,669
23. Ivins, Phillips & Baker	Professional		—		15,934		—		18,538		7,987		15,657		58,116
24. Kekst & Company	Professional		5,263		—		1,550		700		—		—		7,513
25. Kohut, Andrew J	Payroll		71,250		44,958		48,285		47,500		—		—		211,993
26. Kohut, Andrew J	Expense Reimb		290		—		743		155		—		—		1,189
27. Lowenstein Sandler PC	Professional		—		—		—		11,528		9,898		—		21,426
28. Kurtzman Carson Consultants	Professional		—		32,668		131,522		76,938		61,434		46,827		349,389
29. McKeough, John	Expense Reimb		5,961		3,982		2,391		3,696		—		—		16,030
30. Mckeough, John P.	Payroll		22,548		14,583		14,583		14,583		—		—		66,298
31. Mostrom, Joel K.	Payroll		42,500		29,078		28,333		28,333		—		—		128,244
32. Mostrom, Joel K.	Expense Reimb		—		1,120		461		—		281		—		1,862
33. Naftzger, Christopher	Payroll		22,625		15,083		15,083		15,083		9,201		—		77,076
34. Naftzger, Christopher	Expense Reimb		—		1,571		—		1,070		30		—		2,671
35. Petit, Henri	BOD Fees		1,260		2,520		—		5,600		1,260		562		11,202
36. Quarles & Brady	Professional								483,089		337,422		—		820,511
37. Rosenblum, DR. John W.	BOD Fees		5,400		7,200		—		11,300		1,800		—		25,700
38. Swade, Terry A.	Payroll		12,875		8,583		8,583		8,583		—		—		38,625
39. Swade, Terry A.	Expense Reimb		—		—		490		—		—		—		490
40. Thelander, Beverly L.	BOD Fees / Exp		5,400		7,200		2,256		11,300		1,800		—		27,956
41. Turley, Troy	Expense Reimb		1,020		1,803		3,272		5,206		—		—		11,302
42. Turley, Troy L.	Payroll		22,953		12,533		12,533		12,533		—		—		60,553
43. Winter, David A	Payroll		18,887		12,592		12,592		12,592		15,740		—		72,402
44. Winter, David A	Expense Reimb		117		—		64		—		25		45		251
TOTAL PAYMENTS TO INSIDERS		$	409,146	$	330,533	$	1,935,076	$	1,444,713	$	5,960,374	$	533,549	$	10,613,391

1. Includes 12/31/08, 1/15/09 ad 1/31/09 payrolls.

Page 1 of 1

CASE NAME: CANAL CORPORATION	ACCRUAL BASIS-7
CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660	MONTH:     6/1/09-6/28/2009

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 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 DELINQUENT?		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. Payments on prepetition liabilities have been made pursuant to motions granted by the Bankruptcy Court.

Page 1 of 1

CASE NAME: CHESAPEAKE CORPORATION	ACCRUAL BASIS-7a
CASE NUMBERs: 08-36642, 08-36643, 08-36644, 08-36645, 08-36646, 08-36647, 08-36648, 08-36649, 08-36650, 08-36651, 08-36652, 08-36653, 08-36654, 08-36655, 08-36656, 08-36657, 08-36658, 08-36659, 08-36660	MONTH:     6/1/09-6/28/2009

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.

MONTH ENDING: June 1, 2009 To June 28, 2009

INSURANCE SCHEDULE

Type	Carrier/Agent	Period Covered	Payment Amount		Frequency
General Liability	Century Surety Company	4/15/09 - 4/15/10	$	6,372	Paid at Inception
General Liability	Century Surety Company	4/15/09 - 4/15/10	$	1,943	Paid at Inception
Commercial Property	The Harford	4/24/09 - 4/24/10	$	5,999	Paid at Inception
Primary Directors & Officers Liability Insurance	National Union Fire Insurance Company of Pittsburgh (AIG)	1/1/09 - 1/1/10	$	800,000	Paid at Inception
Excess Directors and Officers Liability	Ace American Insurance Company	1/1/09 - 1/1/10	$	300,000	Paid at Inception
Directors and Officers Liability Excess DIC Policy	Ace American Insurance Company	1/1/09 - 1/1/10	$	200,000	Paid at Inception
Fiduciary Liability	Federal Insurance Company	1/1/09 - 1/1/10	$	53,000	Paid at Inception
Excess Fiduciary Liability	National Union Fire Insurance Company of Pittsburgh (AIG)	1/1/09 - 1/1/10	$	43,569	Paid at Inception
Outside Directorship Liability Insurance	Federal Insurance Company	1/1/09 - 1/1/10	$	3,500	Paid at Inception
Crime Insurance	Zurich American Insurance Company	1/1/09 - 1/1/10	$	84,262	Paid at Inception
Employed Lawyers Liability	American International Specialty Lines Insurance Company	5/17/08 - 1/1/10	$	44,356	Paid at Inception
Employed Lawyers Liability	American International Specialty Lines Insurance Company	1/1/10 - 1/1/13	$	48,372	Paid at Inception
US Workers Compensation	Twin City Fire Insurance Company	5/1/09 - 5/1/10			To be billed
US Terrorism	XL Insurance Company Limited	9/30/08 - 9/30/09	$	564	Paid at Inception
Supplemental Travel / Accident Policy	Life Insurance Company of North America	1/1/09 - 1/1/10	$	1,426	Paid at Inception
Kidnap & Ransom	Federal Insurance Company	1/1/07 - 1/1/10	$	25,000	Paid at Inception
Natural Resources Liability and Clean-Up	American International Specialty Lines Insurance Company	12/31/00 - 12/31/20	$	6,500,000	Paid at Inception

Page 1 of 1