Monthly Operating Report

EX-99.1 2 dex991.htm MONTHLY OPERATING REPORT Monthly Operating Report

Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A


	9/30/06		10/31/06		11/30/06		12/31/06		1/31/07		2/28/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	2,752		291		(585	)	816		824		1,170
Investment securities, at market	1,968,477		1,932,805		1,921,375		1,807,249		1,756,026		1,743,283
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000

TOTAL CURRENT ASSETS	2,031,229		1,993,096		1,980,790		1,868,065		1,816,850		1,804,453


OTHER ASSETS:
Note receivable from AIC	20,000,000		20,000,000		20,000,000		20,000,000		20,000,000		20,000,000
Valuation allowance	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)
Investment in AIC, at underlying book value	8,830,983		11,691,065		11,691,065		11,691,065		11,736,045		11,736,045
Contingent claims	21,500,000		21,500,000		21,500,000		21,500,000		21,500,000		21,500,000

TOTAL OTHER ASSETS	30,330,983		33,191,065		33,191,065		33,191,065		33,236,045		33,236,045


TOTAL ASSETS	32,362,212		35,184,161		35,171,855		35,059,130		35,052,895		35,040,498

I CERTIFY UNDER PENALTY OF PERJURY THAT THIS 5 PAGE OPERATING REPORT IS TRUE AND CORRECT.


Date Submitted March 8, 2007		Signed /s/ Gary N. Thompson		Printed Name of Signatory Gary N. Thompson

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1B


	9/30/06		10/31/06		11/30/06		12/31/06		1/31/07		2/28/07
LIABILITIES:
Post-Petition debt (Sched. C)	38,273		65,544		103,765		18,603		34,724		37,967

Pre-Petition Debt:
Litigation claims	22,000,000		22,000,000		22,000,000		22,000,000		22,000,000		22,000,000
Unsecured liabilities	46,054		46,054		46,054		46,054		46,054		46,054
Unsecured debt	116,110,260		116,110,260		116,110,260		116,110,260		116,110,260		116,110,260

TOTAL LIABILITIES	138,194,587		138,221,858		138,260,079		138,174,917		138,191,038		138,194,281


SHAREHOLDERS EQUITY:
Preferred stock	0		0		0		0		0		0
Common stock	6,274,000		6,274,000		6,274,000		6,274,000		6,274,000		6,274,000
Paid-in capital	199,660,000		199,660,000		199,660,000		199,660,000		199,660,000		199,660,000
Treasury stock	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)
Retained earnings:
As of filing date	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)
After filing date	(791,579	)	2,003,099		1,952,572		1,925,009		1,902,653		1,887,013

TOTAL SHAREHOLDERS EQUITY	(105,832,375	)	(103,037,697	)	(103,088,224	)	(103,115,787	)	(103,138,143	)	(103,153,783	)

TOTAL LIABILITIES AND SHAREHOLDER EQUITY	32,362,212		35,184,161		35,171,855		35,059,130		35,052,895		35,040,498

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-2

STATEMENT OF INCOME


	9/30/06		10/31/06		11/30/06		12/31/06		1/31/07		2/28/07
REVENUE:
Net investment income	8,436		8,897		8,211		7,667		8,408		6,966
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		0

OPERATING EXPENSES:
Salaries and benefits	(6,610	)	(6,498	)	(6,498	)	(6,498	)	(7,222	)	(7,222	)
Board fees and expenses	0		0		0		0		0		0
Legal fees and expenses	(38,990	)	(49,827	)	(50,240	)	(26,690	)	(68,191	)	(11,142	)
Accounting fees and expenses	0		(11,978	)	0		0		0		0
Insurance	0		0		0		0		0		0
Franchise taxes	(13,500	)	0		0		0		0		0
Filing fees and expenses	(2,333	)	(5,974	)	(1,994	)	(1,957	)	(327	)	(4,173	)
Miscellaneous	(62	)	(24	)	(5	)	(86	)	(5	)	(69	)

NET OPERATING INCOME / LOSS	(53,059	)	(65,404	)	(50,526	)	(27,564	)	(67,337	)	(15,640	)


OTHER INCOME (EXPENSE):
Interest expense	0		0		0		0		0		0
Income tax refund	0		0		0		0		0		0
Equity in operating earnings of AIC	0		2,388,299		0		0		(41,826	)	0
Equity in unrealized losses of securities of AIC	0		471,783		0		0		86,806		0

TOTAL OTHER INCOME (EXPENSE)	0		2,860,082		0		0		44,980		0


NET INCOME (LOSS)	(53,059	)	2,794,678		(50,526	)	(27,564	)	(22,357	)	(15,640	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-3

SOURCES AND USE OF CASH


	9/30/06		10/31/06		11/30/06		12/31/06		1/31/07		2/28/07
CASH DIFFERENCE:
Current ending cash balance	2,752		291		(585	)	816		824		1,170
Less ending prior month balance	90,242		(2,752	)	(291	)	585		(816	)	(824	)

NET CASH INCREASE (DECREASE)	92,994		(2,461	)	(876	)	1,401		8		346


SOURCES OF CASH:
Net income (loss)	(53,059	)	2,794,678		(50,526	)	(27,564	)	(22,357	)	(15,640	)
Equity in earnings and unrealized losses of AIC	0		(2,860,082	)	0		0		(44,980	)	0

Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	190,369		35,672		11,430		114,127		51,224		12,744
Increase in:
Post- petition debt	0		27,271		38,220		0		16,121		3,242
Pre-petition debt	0		0		0		0		0		0

TOTAL SOURCES OF CASH	137,310		(2,461	)	(876	)	86,563		8		346


USES OF CASH:
Increase in:
Receivables	0		0		0		0		0		0
Marketable securities	0		0		0		0		0		0
Decrease in:
Post- petition debt	(44,316	)	0		0		(85,162	)	0		0
Pre-petition debt	0		0		0		0		0		0

TOTAL USES OF CASH	(44,316	)	0		0		(85,162	)	0		0


NET CASH INCREASE (DECREASE)	92,994		(2,461	)	(876	)	1,401		8		346

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

SCHEDULE C

SCHEDULE OF POST PETITION DEBT