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


	3/31/07		4/30/07		5/31/07		6/30/07		7/31/07		8/31/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	1,702		1,005		810		1,144		923		(1,574	)
Investment securities, at market	1,725,902		1,617,563		1,610,856		1,520,322		1,497,261		1,398,559
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000

TOTAL CURRENT ASSETS	1,787,604		1,678,568		1,671,666		1,581,466		1,558,184		1,456,985

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	11,736,045		11,863,974		11,863,974		11,863,974		11,945,142		11,945,142
Contingent claims	21,500,000		21,500,000		21,500,000		21,500,000		21,500,000		21,500,000

TOTAL OTHER ASSETS	33,236,045		33,363,974		33,363,974		33,363,974		33,445,142		33,445,142

TOTAL ASSETS	35,023,649		35,042,542		35,035,640		34,945,440		35,003,326		34,902,127

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


Date Submitted September 6, 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


	3/31/07		4/30/07		5/31/07		6/30/07		7/31/07		8/31/07
LIABILITIES:
Post-Petition debt (Sched. C)	34,821		33,409		73,306		54,960		120,179		53,644

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	138,191,135		138,189,723		138,229,620		138,211,274		138,276,493		138,209,958


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	1,873,310		1,893,615		1,846,816		1,774,962		1,767,629		1,732,965

TOTAL SHAREHOLDERS EQUITY	(103,167,486	)	(103,147,181	)	(103,193,980	)	(103,265,834	)	(103,273,167	)	(103,307,831	)

TOTAL LIABILITIES AND SHAREHOLDER EQUITY	35,023,649		35,042,542		35,035,640		34,945,440		35,003,326		34,902,127

CASE NAME: Acceptance Insurance Companies Inc.


CASE NO: 05-80059		Form OPR-2

STATEMENT OF INCOME


	3/31/07		4/30/07		5/31/07		6/30/07		7/31/07		8/31/07
REVENUE:
Net investment income	7,354		7,290		6,995		6,350		6,769		6,114
Net realized gain	0		0		0		0		0		0
Other	0		0		0		631		0		0

OPERATING EXPENSES:
Salaries and benefits	(7,222	)	(7,221	)	(7,022	)	(6,949	)	(6,949	)	(6,949	)
Board fees and expenses	0		0		0		(85	)	0		0
Financial advisor fees and expenses	0		0		0		0		(75,000	)	0
Legal fees and expenses	(11,882	)	(104,708	)	(44,805	)	(63,486	)	(13,315	)	(28,913	)
Accounting fees and expenses	0		0		0		(6,326	)	0		0
Insurance	0		0		0		0		0		0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(1,947	)	(2,979	)	(1,963	)	(1,953	)	0		(4,010	)
Miscellaneous	(5	)	(5	)	(5	)	(36	)	(5	)	(906	)

NET OPERATING INCOME / LOSS	(13,702	)	(107,623	)	(46,800	)	(71,854	)	(88,500	)	(34,664	)

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		1,250		0		0		165,848		0
Equity in unrealized losses of securities of AIC	0		126,679		0		0		(84,680	)	0

TOTAL OTHER INCOME (EXPENSE)	0		127,929		0		0		81,168		0

NET INCOME (LOSS)	(13,702	)	20,306		(46,800	)	(71,854	)	(7,332	)	(34,664	)

CASE NAME: Acceptance Insurance Companies Inc.


CASE NO: 05-80059		Form OPR-3

SOURCES AND USE OF CASH


	3/31/07		4/30/07		5/31/07		6/30/07		7/31/07		8/31/07
CASH DIFFERENCE:
Current ending cash balance	1,702		1,005		810		1,144		923		(1,574	)
Less ending prior month balance	(1,170	)	(1,702	)	(1,005	)	(810	)	(1,144	)	(923	)

NET CASH INCREASE (DECREASE)	532		(697	)	(195	)	334		(221	)	(2,497	)

SOURCES OF CASH:
Net income (loss)	(13,702	)	20,306		(46,800	)	(71,854	)	(7,332	)	(34,664	)
Equity in earnings and unrealized losses of AIC	0		(127,929	)	0		0		(81,168	)	0

Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	17,381		108,340		6,707		90,534		23,061		98,702
Increase in:
Post-petition debt	0		0		39,898		0		65,218		0
Pre-petition debt	0		0		0		0		0		0

TOTAL SOURCES OF CASH	3,679		717		(195	)	18,680		(221	)	64,038

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	(3,147	)	(1,414	)	0		(18,346	)	0		(66,535	)
Pre-petition debt	0		0		0		0		0		0

TOTAL USES OF CASH	(3,147	)	(1,414	)	0		(18,346	)	0		(66,535	)

NET CASH INCREASE (DECREASE)	532		(697	)	(195	)	334		(221	)	(2,497	)

CASE NAME: Acceptance Insurance Companies Inc.


CASE NO: 05-80059		SCHEDULE C

SCHEDULE OF POST PETITION DEBT