EX-99.1 2 dex991.htm MONTHLY OPERATING REPORTS Monthly Operating Reports

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 31, 2009 To September 27, 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.

    

OCTOBER 28, 2009

  
PRINTED NAME OF RESPONSIBLE PARTY    

DATE

  
PREPARER:      

/S/ KATHRYN L. TYLER

    

ASSISTANT CONTROLLER

ORIGINAL SIGNATURE OF PREPARER    

TITLE

  

KATHRYN L. TYLER

    

OCTOBER 28, 2009

  
PRINTED NAME OF PREPARER    

DATE

  

 

Page 1 of 1

CASE NAME: CANAL CORPORATION   ACCRUAL BASIS-1 (1 of 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    

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, $2,020,865, $2,635,896, 2,628,282 and 2,521,364 of non trade receivables, deposits, advances and other miscellaneous receivables for January, February March, April, May, June, July, August and September, 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-1 (2 of 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        

BALANCE SHEET

 

     8/2/2009     8/30/2009     9/27/2009  

ASSETS

       

CURRENT ASSETS

       

Cash and cash equivalents

    $ 9,034,187      $ 7,980,143      $ 7,895,167   

Accounts receivable 1

      2,635,896        2,628,282        2,521,364   

Inventories

      -        -        -   

Prepaid expenses and other current assets

      540,777        437,021        334,153   

Income taxes receivable

      2,634,783        2,634,783        2,634,783   
                        

TOTAL CURRENT ASSETS

      14,845,643        13,680,229        13,385,467   

Gross property, plant and equipment:

      1,355,325        1,355,325        1,355,325   

Less accumulated depreciation

      (1,254,730 )      (1,274,849 )      (1,294,968 ) 
                        

Net property, plant and equipment

      100,595        80,476        60,357   

Investment2

      3,334,680        2,920,325        2,727,836   

Net Intercompany receivable2,3

      -        -        -   

Other assets

      31,691,674        32,363,535        32,401,620   
                        

TOTAL ASSETS

      49,972,592        49,044,565        48,575,280   
                        

CURRENT LIABILITIES

       

Accounts payable

      9,349        19,353        -   

Accrued expenses

      598,934        476,946        482,631   
                        

TOTAL CURRENT LIABILITIES

      608,283        496,299        482,631   
                        

LIABILITIES NOT SUBJECT TO COMPROMISE

      608,283        496,299        482,631   

LIABILITIES SUBJECT TO COMPROMISE

      445,566,437        444,669,611        448,244,597   

STOCKHOLDERS’ EQUITY

       

Common stock

      20,238,486        20,238,486        20,238,486   

Additional paid-in capital

      98,740,698        98,740,698        98,740,698   

Accumulated other comprehensive income (loss)

      (45,885,665 )      (45,685,487 )      (45,496,043 ) 

Retained earnings

      (469,295,647 )      (469,415,042 )      (473,635,089 ) 
                        

TOTAL STOCKHOLDERS’ EQUITY

      (396,202,128 )      (396,121,345 )      (400,151,948 ) 
                        

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

    $ 49,972,592      $ 49,044,565      $ 48,575,280   
                        

 

1. Accounts receivable include $3,461,235, $3,338,463, $3,291,694, $2,807,186, 2,418,885, $2,020,865, $2,635,896, 2,628,282 and 2,521,364 of non trade receivables, deposits, advances and other miscellaneous receivables for January, February March, April, May, June, July, August and September, 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     8/2/2009     8/30/2009     9/27/2009  

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        486,386   

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        (1,272,279 ) 

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        (1,758,665 ) 

Loss on divestiture

      -        -        -        591,236,706        338,961        -        1,613        205        863   

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        75,780   

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        2,231,373   
                                                                        

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        (4,066,681 ) 

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        (4,066,681 ) 

Tax expense

      7,880        9,014        8,861        1,861        3,654        3,654        3,291        3,290        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        (4,069,971 ) 

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        150,076   
                                                                        

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 )    $ (4,220,047 ) 

 

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CASE NAME: CANAL CORPORATION

  

     ACCRUAL BASIS-3 (1 of 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

 

     

        
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-3 (2 of 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

 

       
CASH RECEIPTS AND DISBURSEMENTS       
     YTD1  
     8/2/2009     8/30/2009     9/27/2009  

Operating activities:

       

Net loss

    $ (642,689,811 )    $ (642,809,207 )    $ (647,029,253 ) 

Depreciation and amortization

      1,536,761        1,556,881        1,577,000   

Changes in operating assets and liabilities, net of acquisitions and dispositions:

       

Accounts receivable, net

      (662,869 )      (655,256 )      (544,033 ) 

Inventories

      516,000        516,000        516,000   

Other assets

      104,405        208,161        311,029   

Accounts payable and accrued expenses

      119,711        1,769,727        3,416,866   

Income taxes payable

       

Loss on Divestiture

      606,471,427        606,471,427        606,471,427   

Other

      6,019,591        3,303,438        5,557,159   
                        

Net cash provided by operating activities

      (28,584,785 )      (29,638,829 )      (29,723,805 ) 
                        

Investing activities:

       

Purchases of property, plant and equipment

      (498,000 )      (498,000 )      (498,000 ) 

Divestitures

      96,076,462        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

      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 ) 

Proceeds from long-term debt

      -        -        -   

Intercompany

      7,715,198        7,715,198        7,715,198   

Other

      -        -        -   
                        

Net cash provided by (used in) financing activities

      (67,284,802 )      (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

      (289,125 )      (1,343,169 )      (1,428,145 ) 

Cash and cash equivalents at beginning of Year

      9,323,312        9,323,312        9,323,312   
                        

Cash and cash equivalents at end of Period

    $ 9,034,187      $ 7,980,143      $ 7,895,167   
                        

 

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  

 

           SCHEDULE     MONTH   MONTH   MONTH     MONTH   MONTH   MONTH   MONTH   MONTH   MONTH
ACCOUNTS
RECEIVABLEAGING1		   AMOUNT   JANUARY 2009     FEBRUARY 2009     MARCH 2009       APRIL 2009     MAY 2009     JUNE 2009     JULY 2009     AUGUST 2009     SEPT 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:     8/31/09-9/27/2009
     
             
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   $ -     $ -     $ -     $ -     $ -  

 

         

 

STATUS OF POSTPETITION TAXES

       MONTH:     8/31/09-9/27/2009
         
                   
FEDERAL   BEGINNING  
TAX
LIABILITY*  		   AMOUNT
WITHHELD  
AND/OR
ACCRUED		   AMOUNT      
PAID		  

ENDING

TAX
LIABILITY      

1.

   WITHHOLDING**   $ -     $ 11,542     $ 11,542       -

2.

   FICA-EMPLOYEE**     -       1,955       1,955       -

3.

   FICA-EMPLOYER**     -       1,955       1,955       -

4.

   UNEMPLOYMENT     -       -       -       -

5.

   INCOME     -       -       -       -

6.

   OTHER (ATTACH LIST)     -       -       -       -

7.

   TOTAL FEDERAL TAXES   $ -     $ 15,451     $ 15,452     $ -
STATE AND LOCAL                    

8.

   WITHHOLDING   $ -     $ 3,111     $ 3,111       -

9.

   SALES     -       -       -       -

10.

   EXCISE     -       -       -       -

11.

   UNEMPLOYMENT     -       -       -       -

12.

   REAL PROPERTY     -       -       -       -

13.

   PERSONAL PROPERTY     -       -       -       -

14.

   OTHER (ATTACH LIST)     -       -       -       -

15.

   TOTAL STATE & LOCAL   $ -     $ 3,111     $ 3,111     $ -

16.

   TOTAL TAXES   $ -     $ 18,562     $ 18,562     $ -

 

* 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:        8/31/09-9/27/2009   

BANK RECONCILIATIONS

 

                                                        

A.

  

BANK:

     Bank of America    
 		 Wilmington    
Trust    		     Wachovia        Wachovia        Wachovia        Wachovia     Wachovia  

 

TOTAL

  

B.

  

ACCOUNT NUMBER:

     0049 6189 8991     2881-0598         2000044344937        2000044344953        2000042096355        2000042096368       2000028428497    

C.

  

PURPOSE (TYPE):

     Deposit/Wdrwl       Deposit/Wdrwl       Money Market        Money Market        Deposit/Wdrwl        Deposit/Wdrwl       Deposit/Wdrwl    

1.

       BALANCE PER BANK STATEMENT   $ 710     $ 13,716     $ 5,133,926      $ 1,959,854      $ 291,875      $ 499,988     $ 4,988     $ 7,905,057   

2.

       ADD: TOTAL DEPOSITS NOT CREDITED                                                     -   

3.

       SUBTRACT: OUTSTANDING CHECKS     -                             (5,781 )                  (5,781 ) 

4.

       OTHER RECONCILING ITEMS           19       (3,112 )      (1,187 )      (329 )                  (4,609 ) 

5.

       MONTH END BALANCE PER BOOKS     710       13,735       5,130,814        1,958,667        285,765        499,988       4,988       7,894,667   

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                                                   $ 7,895,167   

 

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:

   

 

8/31/09-9/27/2009

 

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

               $ 637,635       

2. FTI Consulting

                        61,845         

3. Goldman Sachs

                 4,142,218       

4. Gordian Group LLC

                        482,214         

5. Greenberg Traurig, LLP

    9/8/2009      11,902        11,902        1,101,411        26,884  

6. Hammonds

                         117,048         

7. Hunton & Williams

    9/2/2009      73,364        73,364        2,032,862        120,630  

8. Ivins, Phillips, & Barker

                         121,603         

9. Kekst & Company

                 7,513       

10. Kurtzman Carson Consultants

           18,252        18,252        408,289         

11. Lowenstein & Sandler PC

                 25,176       

12. Tavenner & Beran

    9/23/2009      24,278        -        -        31,456  

13. Quarles & Brady

    9/9/2009 & 9/10/2009        509,759        509,759        1,954,520        493,752  

TOTAL PAYMENTS

TO PROFESSIONALS

    $ 637,555      $ 613,277      $ 11,092,333      $ 672,722  

 

* 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        3,500        -  

3. Ikon Leasing

      782        782        -  

3. Lanier Parking Solutions

      666        666        -  

4 Pitney Bowes

      -          -        -  

TOTAL

    $ 4,948      $ 4,948      $ -  

 

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: 8/31/09-9/27/2009

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		    July Amount  
        Paid		    Aug Amount  
      Paid		    Sept 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        24,333        182,499
4.    Causey Jr, John Paul    Expense Reimb      -        267        1,719        45        202        555        -        -        765        3,552
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        11,902        1,101,411
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        73,364        2,032,863
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.    Kurtzman Carson Consultants    Professional      -        32,668        131,522        76,938        61,434        46,827        40,648        -        18,252        408,289
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        -        509,759        1,954,520
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  

 

    $

 

 638,375  

 

    $

 

 12,561,126

 

 

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

 

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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: 8/31/09-9/27/2009

 

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.

 

 

 

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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: 8/31/09-9/27/2009
     

 

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 31, 2009 To September 27, 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

 

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