Exhibit 99.1

EX-99.1 2 dex991.htm EXHIBIT 99.1 Exhibit 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: August 3, 2009 To August 30, 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.				SEPTEMBER 23, 2009
PRINTED NAME OF RESPONSIBLE PARTY				DATE

PREPARER:

/S/ KATHRYN L. TYLER				ASSISTANT CONTROLLER
ORIGINAL SIGNATURE OF PREPARER				TITLE

KATHRYN L. TYLER				SEPTEMBER 23, 2009
PRINTED NAME OF PREPARER				DATE

Page 1 of 10


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			8/2/2009			8/30/2009
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		$	9,034,187		$	7,980,143
Accounts receivable¹		6,980,430			7,770,578			7,857,279			8,459,192			95,408,006			2,418,885			2,020,865			2,635,896			2,628,282
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			540,777			437,021
Income taxes receivable		2,634,783			2,634,783			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			14,845,643			13,680,229
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			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	)		(1,254,730	)		(1,274,849	)

Net property, plant and equipment		12,594,490			12,370,600			12,638,586			12,406,349			161,521			141,117			120,715			100,595			80,476
Investment²		609,958,833			609,452,228			609,452,228			608,877,754			4,722,402			4,026,322			3,401,392			3,334,680			2,920,325
Net Intercompany receivable^2,3		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			31,691,674			32,363,535

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			49,972,592			49,044,565

CURRENT LIABILITIES
Accounts payable		—			1,041,104			239,496			1,168,385			119,728			137,757			57,167			9,349			19,353
Accrued expenses		—			2,264,062			3,886,832			4,275,638			6,806,139			1,223,155			844,120			598,934			476,946

TOTAL CURRENT LIABILITIES		—			3,305,166			4,126,328			5,444,023			6,925,867			1,360,912			901,287			608,283			496,299

LIABILITIES NOT SUBJECT TO COMPROMISE		—			3,305,166			4,126,328			5,444,023			6,925,867			1,360,912			901,287			608,283			496,299
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			445,566,437			444,669,611
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			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			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	)		(45,885,665	)		(45,685,487	)
Retained earnings		173,195,177			163,476,372			157,120,627			160,243,942			(434,842,584	)		(458,468,614	)		(462,566,571	)		(469,295,647	)		(469,415,042	)

TOTAL STOCKHOLDERS' EQUITY		457,488,004			449,112,878			441,150,500			444,744,142			(362,458,289	)		(385,809,984	)		(389,729,751	)		(396,202,128	)		(396,121,345	)

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		$	49,972,592		$	49,044,565

Accounts receivable include $3,461,235, $3,338,463, $3,291,694, $2,807,186, 2,418,885, $2,020,865, $2,635,896 and 2,628,282 of non trade receivables, deposits, advances and other miscellaneous receivables for January, February March, April, May, June, July and August, 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 2 of 10


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			8/2/2009			8/30/2009
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			638,486			538,674
Gain (loss) on foreign currency translation		(25,988	)		186,882			(76,697	)		(599,023	)		(20,594,933	)		(1,520,359	)		(3,601,719	)		2,872,317
Other income (loss), net		(17,943	)		(20	)		(21,402	)		(6,048	)		(15,449	)		(465	)		(3,398	)		3,159

Operating loss		(1,912,235	)		(1,491,655	)		(1,956,361	)		(2,597,440	)		(21,202,489	)		(2,014,005	)		(4,243,603	)		2,336,802
Loss on divestiture		—			—			—			591,236,706			338,961			—			1,613			205
Reorganization costs and other financing costs		3,767,001			1,101,363			1,706,766			59,249			15,215			136,808			77,436			69,843
Interest expense, net		6,291,587			5,557,027			3,249,769			3,648,701			1,915,894			1,794,950			2,254,572			2,233,545

Loss from continuing operations		(11,970,822	)		(8,150,046	)		(6,912,897	)		(597,542,096	)		(23,472,559	)		(3,945,763	)		(6,577,224	)		33,209
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	)		(6,577,224	)		33,209
Tax expense		7,880			9,014			8,861			1,861			3,654			3,654			3,291			3,290

Loss before discontinued operations		(9,583,330	)		(6,219,438	)		(3,764,215	)		(594,954,977	)		(23,476,213	)		(3,949,417	)		(6,580,515	)		29,919
Loss (income) from discontinued operations, net of tax		136,752			136,752			(6,887,529	)		131,548			149,818			148,540			148,561			149,315

Net (loss) income	$	(9,720,082	)	$	(6,356,190	)	$	3,123,314		$	(595,086,525	)	$	(23,626,031	)	$	(4,097,957	)	$	(6,729,076	)	$	(119,396	)

Page 3 of 10


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-3

CASH RECEIPTS AND DISBURSEMENTS


	YTD¹
	2/1/2009			3/1/2009			3/29/2009			4/30/2009			5/31/2009			6/28/2009			8/2/2009			8/30/2009
Operating activities:
Net loss	$	(9,917,347	)	$	(16,273,537	)	$	(13,150,223	)	$	(608,236,748	)	$	(631,862,778	)	$	(635,960,735	)	$	(642,689,811	)	$	(642,809,207	)
Depreciation and amortization		369,015			729,029			1,096,266			1,475,836			1,496,240			1,516,642			1,536,761			1,556,881
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	)		(662,869	)		(655,256	)
Inventories		135,000			139,000			114,000			516,000			516,000			516,000			516,000			516,000
Other assets		168,409			(786,794	)		(587,802	)		(286,324	)		(75,364	)		(20,689	)		104,405			208,161
Accounts payable and accrued expenses		(6,132,368	)		(1,310,385	)		2,480,427			2,362,951			(3,682,855	)		(1,999,876	)		119,711			1,769,727
Income taxes payable		—			—			—			—			—
Loss on Divestiture		—			—			—			681,379,250			606,471,427			606,471,427			606,471,427			606,471,427
Other		3,174,529			5,692,364			(995,003	)		138,179			522,947			2,107,827			6,019,591			3,303,438

Net cash provided by operating activities		(12,617,313	)		(12,311,575	)		(12,145,499	)		(16,085,835	)		(27,060,241	)		(27,417,242	)		(28,584,785	)		(29,638,829	)

Investing activities:
Purchases of property, plant and equipment		—			—			(493,000	)		(498,000	)		(498,000	)		(498,000	)		(498,000	)		(498,000	)
Divestitures		—			—			—			—			96,076,462			96,076,462			96,076,462			96,076,462
Proceeds from sales of property, plant and equipment		—			—			—			2,000			2,000			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			95,580,462			95,580,462

Financing activities:
Net borrowings on credit lines		—			—			—			—			—			—			—			—
Payments on long-term debt		—			—			—			—			(75,000,000	)		(75,000,000	)		(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			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	)		(67,284,802	)		(67,284,802	)

Effect of foreign exchange rate changes on cash and cash equivalents		—			—			—			(134	)		(134	)		(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			(289,125	)		(1,343,169	)
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			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		$	9,034,187		$	7,980,143

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 4 of 10


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-4


	SCHEDULE AMOUNT	MONTH		MONTH		MONTH			MONTH		MONTH		MONTH		MONTH		MONTH
ACCOUNTS RECEIVABLE AGING¹	SCHEDULE AMOUNT	JANUARY 2009		FEBRUARY 2009		MARCH 2009			APRIL 2009		MAY 2009		JUNE 2009		JULY 2009		AUGUST 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: 8/3/09-8/30/2009


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	$	19,353	$	—	$	—	$	—	$	19,353


STATUS OF POSTPETITION TAXES		MONTH: 8/3/09-8/30/2009


	BEGINNING TAX LIABILITY*		AMOUNT WITHHELD AND/ OR ACCRUED		AMOUNT PAID		ENDING TAX LIABILITY
FEDERAL
1. WITHHOLDING**	$	—	$	11,915	$	11,915		—
2. FICA-EMPLOYEE**		—		2,647		2,647		—
3. FICA-EMPLOYER**		—		2,647		2,647		—
4. UNEMPLOYMENT		—		—		—		—
5. INCOME		—		—		—		—
6. OTHER (ATTACH LIST)		—		—		—		—
7. TOTAL FEDERAL TAXES	$	—	$	17,209	$	17,209	$	—
STATE AND LOCAL
8. WITHHOLDING	$	—	$	3,376	$	3,376		—
9. SALES		—		—		—		—
10. EXCISE		—		—		—		—
11. UNEMPLOYMENT		—		—		—		—
12. REAL PROPERTY		—		—		—		—
13. PERSONAL PROPERTY		—		—		—		—
14. OTHER (ATTACH LIST)		—		—		—		—
15. TOTAL STATE & LOCAL	$	—	$	3,376	$	3,376	$	—
16. TOTAL TAXES	$	—	$	20,585	$	20,585	$	—

*	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 5 of 10


CASE NAME: CANAL CORPORATION		ACCRUAL BASIS-5

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:		8/3/09-8/30/2009

BANK RECONCILIATIONS


A.	BANK:		Bank of America		Wilmington Trust		Wachovia			Wachovia			Wachovia			Wachovia		Wachovia
B.	ACCOUNT NUMBER:		0049 6189 8991		2881-0598		2000044344937			2000044344953			2000042096355			2000042096368		2000028428497		TOTAL
C.	PURPOSE (TYPE):		Deposit/ Wdrwl		Deposit/ Wdrwl		Money Market			Money Market			Deposit/ Wdrwl			Deposit/ Wdrwl		Deposit/ Wdrwl
1.	BALANCE PER BANK STATEMENT	$	732	$	13,735	$	5,152,389		$	1,937,092		$	380,106		$	499,988	$	4,988	$	7,989,030
2.	ADD: TOTAL DEPOSITS NOT CREDITED																			—
3.	SUBTRACT: OUTSTANDING CHECKS		—										(2,183	)						(2,183	)
4.	OTHER RECONCILING ITEMS				19		(5,354	)		(2,198	)		329							(7,204	)
5.	MONTH END BALANCE PER BOOKS		732		13,754		5,147,035			1,934,894			378,252			499,988		4,988		7,979,643
6.	NUMBER OF LAST CHECK WRITTEN		N/A		N/A		N/A			N/A			N/A			N/A		N/A		N/A
INVESTMENT ACCOUNTS
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																		$	7,980,143

Page 6 of 10


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:	8/3/09-8/30/2009

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	7/29/09 & 8/24/09	$	13,052	$	13,052	$	637,635
2.	FTI Consulting							61,845
3.	Goldman Sachs							4,142,218
4.	Gordian Group LLC	8/5/09 & 8/24/09		33,333		33,333		482,214
5.	Greenberg Traurig, LLP	8/5/09 & 8/18/09		21,989		21,989		1,089,509		25,786
6.	Hammonds	8/24/2009		2,374		2,374		117,048
7.	Hunton & Williams	8/5/09 & 8/24/09		158,206		158,206		1,959,498		144,612
8.	Ivins, Phillips, & Barker					19,943		121,603
9.	Kekst & Company							7,513
10.	Kurtzman Carson Consultants							390,037		18,252
11.	Lowenstein & Sandler PC					3,750		25,176
12.	Tavenner & Beran					—		—		24,278
13.	Quarles & Brady							1,444,761		756,759
	TOTAL PAYMENTS TO PROFESSIONALS		$	228,954	$	252,647	$	10,479,056	$	969,687

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.	Ikon Leasing		814		814
3.	Lanier Parking Solutions		927		927		130
4	Pitney Bowes		—		—
	TOTAL	$	1,741	$	1,741	$	130

Page 7 of 10


CASE NAME: CANAL CORPORATION		APPENDIX A

PAYMENTS TO INSIDERS AND PROFESSIONALS

MONTH: 8/3/09-8/30/2009

INSIDERS


NAME		TYPE OF PAYMENT	Jan Amount Paid¹		Feb Amount Paid		March Amount Paid		April Amount Paid		May Amount Paid		June Amount Paid		July Amount Paid		Aug Amount Paid		TOTAL PAID TO DATE
1.	Alvarez & Marsal	Professional	$	—	$	—	$	279,364	$	186,116	$	134,882	$	24,222	$	—	$	13,052		637,636
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		—		—		24,333		24,333		158,166
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		—		26,463		—		68,131
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		—		2,585		—		10,705
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		85,202		33,333		482,214
13.	Greenberg Traurig	Professional		—		—		329,162		219,314		454,315		45,432		19,297		21,989		1,089,509
14.	Hammonds LLP	Professional		—		—		44,502		27,730		27,999		14,443		—		2,374		117,048
15.	Hellyar, Mary Jane	BOD Fees		1,800		2,744		35		8,000		1,800		—		3,692		—		18,071
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		136,623		158,206		1,959,499
23.	Ivins, Phillips & Baker	Professional		—		15,934		—		18,538		7,987		15,657		43,544		19,943		121,603
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		—		—		3,750		25,176
28.	Kurttzman Carson Consultants	Professional		—		32,668		131,522		76,938		61,434		46,827		40,648		—		390,037
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		6,178		—		17,380
36.	Quarles & Brady	Professional								483,089		337,422		—		624,250		—		1,444,761
37.	Rosenblum, DR. John W.	BOD Fees		5,400		7,200		—		11,300		1,800		—		9,500		—		35,200
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		—		10,067		—		38,023
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	$	1,032,381	$	276,980	$	11,922,751

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

Page 8 of 10


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:	8/3/09-8/30/2009

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 9 of 10


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:	8/3/09-8/30/2009

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: August 3, 2009 To August 30, 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	$	1,034	Paid at Inception

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 10 of 10