EX-99 3 wil363965.txt EXHIBIT 99.1 EXHIBIT A IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE - - - - - - - - - - - - - - - - - - - - - - - - - -x : In re: : Chapter 11 : POLAROID CORPORATION, : Case No. 01-10864 (PJW) et al., : -- -- : : Jointly Administered Debtors. : : - - - - - - - - - - - - - - - - - - - - - - - - - -x NOTICE OF FILING OF MONTHLY OPERATING REPORTS FOR PERIOD FROM SEPTEMBER 29, 2003 THROUGH NOVEMBER 2, 2003 PLEASE TAKE NOTICE that on November 24, 2003, the debtors and debtors-in-possession in the above-captioned cases filed with the United States Bankruptcy Court for the District of Delaware the Monthly Operating Reports of Polaroid Corporation, et al., for the period from September 29, 2003 through November 2, 2003, attached hereto as Exhibit A (the "Monthly Operating Re- ports"). PLEASE TAKE FURTHER NOTICE that contemporaneously herewith, copies of the Monthly Operating Reports were served on the parties set forth on Exhibit B attached hereto in the manner indicated thereon. Dated: Wilmington, Delaware November 24, 2003 /s/ Gregg M. Galardi ---------------------------------------- Gregg M. Galardi (I.D. No. 2991) Mark L. Desgrosseilliers (I.D. No. 4083) SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP One Rodney Square P.O. Box 636 Wilmington, Delaware 19899-0636 (302) 651-3000 - and - Eric W. Kaup SKADDEN, ARPS, SLATE, MEAGHER & FLOM (ILLINOIS) 333 West Wacker Drive Chicago, Illinois 60606 (312) 407-0700 Attorneys for Debtors and Debtors-in-Possession EXHIBIT A TRANSMITTAL OF FINANCIAL REPORTS AND CERTIFICATION OF COMPLIANCE WITH UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR PERIOD ENDED November 2, 2003 Debtors Names: Case Number: Polaroid Corporation 01-10864 Inner City, Inc. 01-10865 Polaroid Asia Pacific Limited 01-10866 Polaroid Latin America Corp. 01-10867 Polaroid Digital Solutions, Inc. 01-10868 Polaroid Eyewear, Inc. 01-10869 Polaroid ID Systems, Inc. 01-10870 Polaroid Malaysia Limited 01-10871 PRD Capital, Inc. 01-10872 PRD Investment, Inc. 01-10874 International Polaroid Corporation 01-10875 Mag-Media Ltd. 01-10876 PMC, Inc. 01-10877 Polaroid Asia Pacific International, Inc. 01-10878 Polaroid Dry Imaging, LLC 01-10879 Polaroid Eyewear FarEast, Inc. 01-10881 Polaroid Memorial Drive, LLC 01-10882 Sub Debt Partners Corp. 01-10883 Polaroid Online Services, Inc. 01-10884 Polaroid Partners, Inc. 01-10885 Polint, Inc. 01-10886 As President of Primary PDC, Inc. (formerly Polaroid Corporation), I affirm: 1) That I have reviewed the financial statements attached hereto, consisting of: Balance Sheet Statement of Cash Receipts and Cash Disbursements Statement of Postpetition Taxes along with the debtor questionnaire and that this information has been prepared in accordance with normal and customary accounting practices, and fairly and accurately reflect the debtors' financial activity for the period stated. 2) That the insurance as described in Section 3 of the Operating Instructions and Reporting Requirements for Chapter 11 cases are current and have been paid in the normal course of business. 3) That all post-petition taxes as described in Section 4 of the Operating Instructions and Reporting Requirements for Chapter 11 cases are current and have been paid in the normal course of business. 4) That no professional fees (attorney, accountant, etc.) have been paid without specific court authorization. (See Exhibit A for information on payments of professional fees paid in October 2003.) 5) That no payments were made by or on behalf of any of the Debtors other than Primary PDC, Inc., for the period September 29, 2003 through and including November 2, 2003. Primary PDC, Inc. (formerly Polaroid Corporation) under my direction and supervision prepared the attached monthly report. Primary PDC, Inc. (formerly Polaroid Corporation) verifies that to the best of its knowledge, the information provided herein is true and correct. I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the documents attached are true and correct to the best of my knowledge and belief. /s/ Kevin Pond Dated: November 17, 2003 ----------------------------------- Debtor in Possession Title: President Phone Number: (781) 386-2000
POLAROID CORPORATION DEBTOR QUESTIONNAIRE OCTOBER 2003 MUST BE COMPLETED EACH MONTH YES NO 1. Have any assets been sold or transferred outside the normal course of No business this reporting period? If yes, provide an explanation below. 2. Have any funds been disbursed from any account other than a debtor in No possession account this reporting period? If yes, provide an explanation below. Note: All cash disbursements for the month of October 2003 were made in the Polaroid Corporation (renamed Primary PDC, Inc.) entity. No other cash disbursements were made in October 2003 by the other Debtor companies. 3. Have all postpetition tax returns been timely filed? If no, provide an Yes (A) explanation below. (A) As previously reported in the December 2001 report to the Bankruptcy Court, Primary PDC, Inc. (formerly Polaroid Corporation), with the approval of the Court, sold its large government identification business assets to Digimarc Corporation ("Digimarc"). In three states where the assets that were sold are located, Primary PDC, Inc. could be subject to a sales tax on the net book value of the assets. Digimarc has stated that they have applied to these three states to be a reseller of ID assets to a wholly owned LLC. If so, the three states would issue a resale certificate to Digimarc and they would send a copy of this certificate to Primary PDC, Inc. who would not have to pay a sales tax on the sale. As of the date of this report, Primary PDC, Inc. has not received any resale certificates from Digimarc. However, Digimarc has applied for them. Primary PDC, Inc. has filed the state sales tax returns for the period in question without remitting sales tax to the three states. Primary PDC, Inc. expects that this issue will be resolved shortly. If the states in question deny resale status to Digimarc, Primary PDC, Inc. would owe the three states approximately $600,000 plus interest. Although Primary PDC, Inc. believes such an outcome would be unlikely, Primary PDC, Inc. has sufficient cash to cover any adverse conclusion on this matter. 4. Are workers compensation, general liability and other necessary insurance Yes coverages in effect? If no, provide an explanation below.
Polaroid Corporation Statement of Cash Receipts and Disbursements Period September 29, 2003 - November 2, 2003 (in U.S. $'s) Beginning Book Transfers Account Name Account # Balance Receipts In/ (Out) ------------ --------- ------- -------- --------- Bank of New York 6903534891/ $1,979,611.66 76001691637 Cash Receipts: Account transfer Tax/ escrow refunds $0.00 Interest $456.90 Other recoveries $1,951,172.25 Cash Disbursements: Professional fee payments (See Exhibit A) Management and transitional services Other payments made pursuant to an order of the Court All other costs -------------- ------------- ------------- - Balance at November 2, 2003 $1,979,611.66 $1,951,629.15 $0.00 JP Morgan Chase Tax Escrow Account 507-895053 $4,049,406.92 Cash Receipts: Interest $1,725.83 Cash Disbursements: Account transfer ($1,940,213.00) Tax payments -------------- ------------- -------------- Balance at November 2, 2003 $4,049,406.92 $1,725.83 ($1,940,213.00) -------------- ------------- -------------- Balance at November 2, 2003 $6,029,018.58 $1,953,354.98 -$1,940,213.00 ============== ============= ============== Ending Book Reconciling Bank Account Name Disbursements Balance Items Balance ------------ ------------- ------- ----- ------- Bank of New York Cash Receipts: Account transfer Tax/ escrow refunds Interest Other recoveries Cash Disbursements: Professional fee payments (See $1,129,048.49 Exhibit A) Management and transitional services $49,554.27 Other payments made pursuant to an order of the Court $0.00 All other costs $51,250.00 ------------- -------------- ------------ ------------- Balance at November 2, 2003 $1,229,852.76 $2,701,388.05 $18,583.67 $2,719,971.72 JP Morgan Chase Tax Escrow Account Cash Receipts: Interest Cash Disbursements: Account transfer Tax payments -------------- -------------- ----------- ------------- Balance at November 2, 2003 $0.00 $2,110,919.75 $0.00 $2,110,919.75 -------------- -------------- ------------ ------------ Balance at November 2, 2003 $1,229,852.76 $4,812,307.80 $18,583.67 $4,830,891.47 ============== ============== ============ ============
Ch11 Bank Statement Filing-October'03
POLAROID CORPORATION PROFESSIONAL FEE PAYMENT SUMMARY PROFESSIONAL VENDOR Nov. 2001 Dec. 2001 Jan. 2002 Feb. 2002 Mar. 2002 Skadden, Arps, Slate, Meagher & Flom (Illinois) $965,791 Kroll Zolfo Cooper, LLC $340,166 $225,000 KPMG LLP Bingham Dana LLP ------------------------------------------------------------ Dresdner Kleinwort Wasserstein, Inc. $335,796 Miller, Buckfire, Lewis ------------------------------------------------------------ Donlin, Recano & Company, Inc. $19,500 $85,611 $25,000 Akin, Gump, Strauss, Hauer & Feld, L..L..P. Young Conaway Stargatt & Taylor LLP Houlihan Lokey Howard & Zukin Financial Advisors, Inc. $351,399 Groom Law Group McShane Greenberg Traurig LLP Buck Consultants Wind Down Associates, LLC BTB Associates LLC Traxi LLC - Perry M. Mandarino Proskauer Rose LLP -------------------------------------------------------------------- TOTAL $19,500 $0 $0 $777,176 $1,551,587 -------------------------------------------------------------------- ORDINARY COURSE PROFESSIONAL VENDOR Arthur Andersen LLP $8,400 Foley Hoag & Eliot Horal & Chvosta Law Offices Merrill Communication Pro-Legal Services Goodwin Procter Ikon Office Solutions Kekst & Company Inc JP Morgan Kilkpatrick & Lockhart LLP David Feldman & Associates Davies Polk & Wardwell Thommessen Krefting Greve LLP Duplicating USC, Inc. Hewitt Associates LLC Coffman, De Fries & Northern American Stock Transfer & Trust FTI Consultants Baker Botts, LLP Reimer & Braunstein, LLP Morrison & Forester, LLP Baker & McKenzie Morris, Nichols, Arsht & Tunnel Fidelity Investments Institution Prince, Lobel, Glovsky & Tye KPMG LLP (Canada) Barnes, Richardson & Colburn Ernst & Young, LLP Pachuski, Stang, Ziehl, Young, Jones & Weintraub, P.C. ADP Investor Communication Services -------------------------------------------------------------------- TOTAL $0 $0 $8,400 $0 $0 -------------------------------------------------------------------- -------------------------------------------------------------------- TOTAL ALL PROFESSIONALS $19,500 $0 $8,400 $777,176 $1,551,587 ====================================================================
[Table continued, 2 of 5] POLAROID CORPORATION PROFESSIONAL FEE PAYMENT SUMMARY PROFESSIONAL VENDOR Apr, 2002 May, 2002 June, 2002 July, 2002 August, 2002 Skadden, Arps, Slate, Meagher & Flom (Illinois) $552,209 $1,049,686 Kroll Zolfo Cooper, LLC $304,000 $286,000 547,000 $256,834 $263,542 KPMG LLP $320,269 14,953 $86,663 Bingham Dana LLP ------------------------------------------------------------ Dresdner Kleinwort Wasserstein, Inc. $711,204 Miller, Buckfire, Lewis ------------------------------------------------------------ Donlin, Recano & Company, Inc. $30,000 $55,000 98,000 $118,285 Akin, Gump, Strauss, Hauer & Feld, L..L..P. $264,468 324,000 $214,532 $111,431 Young Conaway Stargatt & Taylor LLP $0 Houlihan Lokey Howard & Zukin Financial Advisors, Inc. $130,000 $125,000 130,000 $378,601 Groom Law Group 200,000 McShane $9,666 $20,479 $4,966 Greenberg Traurig LLP Buck Consultants Wind Down Associates, LLC BTB Associates LLC Traxi LLC - Perry M. Mandarino Proskauer Rose LLP ---------------------------------------------------------------------- TOTAL $738,134 $806,748 $1,313,953 $2,113,380 $1,634,573 ---------------------------------------------------------------------- ORDINARY COURSE PROFESSIONAL VENDOR Arthur Andersen LLP $12,768 Foley Hoag & Eliot 440 Horal & Chvosta Law Offices 2125 Merrill Communication 11567 Pro-Legal Services 1625 Goodwin Procter 9722 Ikon Office Solutions 15427 Kekst & Company Inc JP Morgan Kilkpatrick & Lockhart LLP David Feldman & Associates Davies Polk & Wardwell Thommessen Krefting Greve LLP Duplicating USC, Inc. Hewitt Associates LLC Coffman, De Fries & Northern American Stock Transfer & Trust FTI Consultants Baker Botts, LLP Reimer & Braunstein, LLP Morrison & Forester, LLP Baker & McKenzie Morris, Nichols, Arsht & Tunnel Fidelity Investments Institution Prince, Lobel, Glovsky & Tye KPMG LLP (Canada) Barnes, Richardson & Colburn Ernst & Young, LLP Pachuski, Stang, Ziehl, Young, Jones & Weintraub, P.C. ADP Investor Communication Services ---------------------------------------------------------------------- TOTAL $0 $12,768 $0 $0 $40,906 ---------------------------------------------------------------------- ---------------------------------------------------------------------- TOTAL ALL PROFESSIONALS $738,134 $819,516 $1,313,953 $2,113,380 $1,675,479 ======================================================================
[Table continued, 3 of 5] POLAROID CORPORATION PROFESSIONAL FEE PAYMENT SUMMARY PROFESSIONAL VENDOR Sept, 2002 Oct, 2002 Nov, 2002 Dec, 2002 Skadden, Arps, Slate, Meagher & Flom (Illinois) $1,795,123 $ 357,703 77647 Kroll Zolfo Cooper, LLC 231683 $502,971 $ 192,769 KPMG LLP $225,536 31800 Bingham Dana LLP $11,629 ------------------------------------------------------------ Dresdner Kleinwort Wasserstein, Inc. Miller, Buckfire, Lewis $481,767 ------------------------------------------------------------ Donlin, Recano & Company, Inc. 24558 $16,904 $ 44,587 17398 Akin, Gump, Strauss, Hauer & Feld, L..L..P. 387916 $416,558 $ 140,135 194866 Young Conaway Stargatt & Taylor LLP $54,253 Houlihan Lokey Howard & Zukin Financial Advisors, Inc. $233,343 509600 Groom Law Group 27510 $63,644 McShane 2989 $12,296 8140 Greenberg Traurig LLP Buck Consultants 13884 41136 $ 3,312 7314 Wind Down Associates, LLC 29096 BTB Associates LLC Traxi LLC - Perry M. Mandarino Proskauer Rose LLP ------------------------------------------------------------ TOTAL $688,540 $3,855,160 $738,506 875861 ------------------------------------------------------------ ORDINARY COURSE PROFESSIONAL VENDOR Arthur Andersen LLP Foley Hoag & Eliot Horal & Chvosta Law Offices 0 Merrill Communication 1795 Pro-Legal Services Goodwin Procter 5705 606 Ikon Office Solutions Kekst & Company Inc 13683 JP Morgan 0 1825 Kilkpatrick & Lockhart LLP 10263 46672 $ 16,407 7712 David Feldman & Associates 15550 Davies Polk & Wardwell 43336 13258 Thommessen Krefting Greve LLP 2221 Duplicating USC, Inc. 6732 Hewitt Associates LLC 0 7213 2094 Coffman, De Fries & Northern 0 3290 American Stock Transfer & Trust 0 3200 6400 FTI Consultants 14390 Baker Botts, LLP 119 Reimer & Braunstein, LLP 3064 Morrison & Forester, LLP 17012 Baker & McKenzie 666 Morris, Nichols, Arsht & Tunnel Fidelity Investments Institution Prince, Lobel, Glovsky & Tye KPMG LLP (Canada) Barnes, Richardson & Colburn Ernst & Young, LLP Pachuski, Stang, Ziehl, Young, Jones & Weintraub, P.C. ADP Investor Communication Services ------------------------------------------------------------ TOTAL $91,785 $81,133 $16,407 53888 ------------------------------------------------------------ ------------------------------------------------------------ TOTAL ALL PROFESSIONALS $780,325 $3,936,293 $754,913 $929,749 ============================================================
[Table continued, 4 of 5] POLAROID CORPORATION PROFESSIONAL FEE PAYMENT SUMMARY PROFESSIONAL VENDOR Jan, 2003 Feb, 2003 Mar, 2003 Apr, 2003 May,2003 Skadden, Arps, Slate, Meagher & Flom (Illinois) 73614 59701 278027 146666 Kroll Zolfo Cooper, LLC 42840 32483 15842 9412 46551 KPMG LLP 45378 Bingham Dana LLP ------------------------------------------------------------ Dresdner Kleinwort Wasserstein, Inc. Miller, Buckfire, Lewis ------------------------------------------------------------ Donlin, Recano & Company, Inc. 37738 14969 42554 68521 38996 Akin, Gump, Strauss, Hauer & Feld, L..L..P. 39347 40288 75444 41585 61781 Young Conaway Stargatt & Taylor LLP 17531 Houlihan Lokey Howard & Zukin Financial Advisors, Inc. 120738 Groom Law Group 116652 McShane 8880 2164 Greenberg Traurig LLP Buck Consultants 2494 Wind Down Associates, LLC 97202 24908 26569 27120 36288 BTB Associates LLC 4080 4081 3559 Traxi LLC - Perry M. Mandarino 110214 Proskauer Rose LLP --------------------------------------------------------------------- TOTAL 465892 188426 269567 446276 444056 --------------------------------------------------------------------- ORDINARY COURSE PROFESSIONAL VENDOR Arthur Andersen LLP Foley Hoag & Eliot 720 Horal & Chvosta Law Offices Merrill Communication Pro-Legal Services 11584 Goodwin Procter 12520 Ikon Office Solutions Kekst & Company Inc JP Morgan -1825 Kilkpatrick & Lockhart LLP 16557 19707 3262 7056 David Feldman & Associates Davies Polk & Wardwell 26552 17635 17286 48872 8108 Thommessen Krefting Greve LLP Duplicating USC, Inc. Hewitt Associates LLC 788 3417 Coffman, De Fries & Northern American Stock Transfer & Trust 3200 FTI Consultants 7556 19987 Baker Botts, LLP 680 Reimer & Braunstein, LLP Morrison & Forester, LLP 1572 11952 Baker & McKenzie Morris, Nichols, Arsht & Tunnel 13086 3003 Fidelity Investments Institution 20800 Prince, Lobel, Glovsky & Tye 362 KPMG LLP (Canada) 9300 Barnes, Richardson & Colburn 141511 Ernst & Young, LLP 550000 Pachuski, Stang, Ziehl, Young, Jones & Weintraub, P.C. ADP Investor Communication Services --------------------------------------------------------------------- TOTAL 27087 52393 93173 764441 38153 --------------------------------------------------------------------- --------------------------------------------------------------------- TOTAL ALL PROFESSIONALS 492979 240819 362740 1210718 482209 =====================================================================
[Table continued, 5 of 5] POLAROID CORPORATION PROFESSIONAL FEE PAYMENT SUMMARY PROFESSIONAL VENDOR June, 2003 July, 2003 August,2003 Sept, 2003 Oct, 2003 Skadden, Arps, Slate, Meagher & Flom (Illinois) 205989 335071 166772 130623 222179 Kroll Zolfo Cooper, LLC 152040 24179 KPMG LLP 35312 Bingham Dana LLP 62572 ------------------------------------------------------------ Dresdner Kleinwort Wasserstein, Inc. Miller, Buckfire, Lewis ------------------------------------------------------------ Donlin, Recano & Company, Inc. 33489 23560 14665 17344 108194 Akin, Gump, Strauss, Hauer & Feld, L..L..P. 47778 217817 72194 157525 Young Conaway Stargatt & Taylor LLP 8476 71519 Houlihan Lokey Howard & Zukin Financial Advisors, Inc. 201486 200000 160766 Groom Law Group 31850 47471 13382 McShane Greenberg Traurig LLP Buck Consultants 12870 Wind Down Associates, LLC 35209 99450 32975 45052 34127 BTB Associates LLC 6353 7746 5671 5064 5226 Traxi LLC - Perry M. Mandarino 140601 187953 110502 195248 Proskauer Rose LLP 221598 48521 190071 225534 246260 ---------------------------------------------------------------- TOTAL 932829 1501902 681423 495811 1006320 ---------------------------------------------------------------- ORDINARY COURSE PROFESSIONAL VENDOR Arthur Andersen LLP Foley Hoag & Eliot Horal & Chvosta Law Offices Merrill Communication Pro-Legal Services Goodwin Procter Ikon Office Solutions Kekst & Company Inc JP Morgan 7500 Kilkpatrick & Lockhart LLP 5583 10450 3872 16977 David Feldman & Associates Davies Polk & Wardwell 14346 51381 25059 45047 10130 Thommessen Krefting Greve LLP Duplicating USC, Inc. Hewitt Associates LLC 3417 Coffman, De Fries & Northern 3782 908 American Stock Transfer & Trust FTI Consultants 18786 22258 5186 18031 Baker Botts, LLP Reimer & Braunstein, LLP Morrison & Forester, LLP 34404 19310 79500 5214 Baker & McKenzie Morris, Nichols, Arsht & Tunnel 722 Fidelity Investments Institution Prince, Lobel, Glovsky & Tye KPMG LLP (Canada) Barnes, Richardson & Colburn 20456 Ernst & Young, LLP Pachuski, Stang, Ziehl, Young, Jones & Weintraub, P.C. 7719 18240 18871 ADP Investor Communication Services 71537 ---------------------------------------------------------------- TOTAL 76901 131574 129614 77866 122729 ---------------------------------------------------------------- ---------------------------------------------------------------- TOTAL ALL PROFESSIONALS 1009731 1633476 811037 573677 1129048 ================================================================
CONSOLIDATED POLAROID CORPORATION AND DEBTOR SUBSIDIARY COMPANIES Statement of Financial Position As of November 2, 2003 (in U.S. $'s) ASSETS TOTAL CASH 4,812,308 NET RECEIVABLES - THIRD PARTY 0 NET RECEIVABLES - INTERCOMPANY - NET INVENTORIES - TOTAL PREPAID EXPENSES - ----------------------- TOTAL CURRENT ASSETS 4,812,308 ----------------------- NET FIXED ASSETS - INVESTMENT IN DEBTOR SUBSIDIARY COMPANIES (0) OTHER NONCURRENT ASSETS 462,226 TOTAL NON-CURRENT ASSETS 462,226 ----------------------- TOTAL ASSETS 5,274,534 ======================= LIABILITIES POST-PETITION NOTES - POST-PETITION PAYABLES - THIRD PARTY 623,669 POST-PETITION PAYABLES - INTERCOMPANY - TOTAL POST-PETITION ACCRUALS 352,796 ----------------------- TOTAL POST-PETITION CURRENT LIABILITIES 976,465 TOTAL POST-PETITION NON-CURRENT LIABILITIES - TOTAL PREPETITION LIABILITIES 860,978,847 ----------------------- TOTAL LIABILITIES 861,955,311 TOTAL SHAREHOLDER'S EQUITY / (DEFICIT) (856,680,777) ----------------------- TOTAL LIABILITIES & EQUITY / (DEFICIT) 5,274,534 =======================
POLAROID CORPORATION AND DEBTOR SUBSIDIARY COMPANIES Statement of Financial Position As of November 2, 2003 (in U.S. $'s) Polaroid Polaroid Latin Asia Polaroid Polaroid America Pacific Inner Eyewear, Corporation Corp. Ltd. City, Inc. Inc. ASSETS TOTAL CASH 4,812,308 - - - - NET RECEIVABLES - THIRD PARTY 0 - - - - NET RECEIVABLES - INTERCOMPANY - - - - - NET INVENTORIES - - - - - TOTAL PREPAID EXPENSES - - - - - ------------------------------------------------------------------ TOTAL CURRENT ASSETS 4,812,308 - - - - ------------------------------------------------------------------ NET FIXED ASSETS - - - - - INVESTMENT IN DEBTOR SUBSIDIARY COMPANIES 78,611,939 - - - - OTHER NONCURRENT ASSETS 462,226 - - - - TOTAL NON-CURRENT ASSETS 79,074,165 - - - - ------------------------------------------------------------------ TOTAL ASSETS 83,886,473 - - - - ================================================================== LIABILITIES POST-PETITION NOTES - - - - - POST-PETITION PAYABLES - THIRD PARTY 623,669 - - - - POST-PETITION PAYABLES - INTERCOMPANY - - - - - TOTAL POST-PETITION ACCRUALS 352,796 - - - - ------------------------------------------------------------------ TOTAL POST-PETITION CURRENT LIABILITIES 976,465 - - - - TOTAL POST-PETITION NON-CURRENT LIABILITIES - - - - - TOTAL PREPETITION LIABILITIES 859,600,046 202,165 64,705 77,106 - ------------------------------------------------------------------ TOTAL LIABILITIES 860,576,510 202,165 64,705 77,106 - TOTAL SHAREHOLDER'S EQUITY / (DEFICIT) (776,690,037) (202,165) (64,705) (77,106) - ------------------------------------------------------------------ TOTAL LIABILITIES & EQUITY / (DEFICIT) 83,886,473 0 - - - ================================================================== (TABLE CONTINUED) Polaroid Digital Polaroid ID Polaroid Sub Debt PRD PRD Polaroid Solutions, Systems, Malaysia, Partners Investment, Capital, Memorial Inc. Inc. Ltd. Corp. Inc. Inc. Drive LLC ASSETS TOTAL CASH - - - - - - - NET RECEIVABLES - THIRD PARTY - - - - - - - NET RECEIVABLES - INTERCOMPANY - - - - - - - NET INVENTORIES - - - - - - - TOTAL PREPAID EXPENSES - - - - - - - -------------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS - - - - - - - -------------------------------------------------------------------------------------------- NET FIXED ASSETS - - - - - - - INVESTMENT IN DEBTOR SUBSIDIARY COMPANIES - - - - - - - OTHER NONCURRENT ASSETS - - - - - - - TOTAL NON-CURRENT ASSETS - - - - - - - -------------------------------------------------------------------------------------------- TOTAL ASSETS - - - - - - - ============================================================================================ LIABILITIES POST-PETITION NOTES - - - - - - - POST-PETITION PAYABLES - THIRD PARTY - - - - - - - POST-PETITION PAYABLES - INTERCOMPANY - - - - - - - TOTAL POST-PETITION ACCRUALS - - - - - - - -------------------------------------------------------------------------------------------- TOTAL POST-PETITION CURRENT LIABILITIES - - - - - - - TOTAL POST-PETITION NON-CURRENT LIABILITIES - - - - - - - TOTAL PREPETITION LIABILITIES - 828,812 199,078 673 - - - -------------------------------------------------------------------------------------------- TOTAL LIABILITIES - 828,812 199,078 673 - - - TOTAL SHAREHOLDER'S EQUITY / (DEFICIT) - (828,812) (199,078) (673) - - - -------------------------------------------------------------------------------------------- TOTAL LIABILITIES & EQUITY / (DEFICIT) - - - - - - - ============================================================================================ (TABLE CONTINUED) Polaroid Asia Polaroid Polaroid Pacific International Polaroid Dry Partners, Polint, International, PMC, Polaroid Mag Media, Eyewear Imaging Inc. Inc. Inc. Inc. Corp. Limited Far East Inc. LLC ASSETS TOTAL CASH - - - - - - - - NET RECEIVABLES - THIRD PARTY - - - - - - - - NET RECEIVABLES - INTERCOMPANY - - - - - - - - NET INVENTORIES - - - - - - - - TOTAL PREPAID EXPENSES - - - - - - - - ----------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS - - - - - - - - ----------------------------------------------------------------------------------------- NET FIXED ASSETS - - - - - - - - INVESTMENT IN DEBTOR SUBSIDIARY COMPANIES - - - - - - - - OTHER NONCURRENT ASSETS - - - - - - - - TOTAL NON-CURRENT ASSETS - - - - - - - - ----------------------------------------------------------------------------------------- TOTAL ASSETS - - - - - - - - ========================================================================================= LIABILITIES POST-PETITION NOTES - - - - - - - - POST-PETITION PAYABLES - THIRD PARTY - - - - - - - - POST-PETITION PAYABLES - INTERCOMPANY - - - - - - - - TOTAL POST-PETITION ACCRUALS - - - - - - - - ----------------------------------------------------------------------------------------- TOTAL POST-PETITION CURRENT LIABILITIES - - - - - - - - TOTAL POST-PETITION NON-CURRENT LIABILITIES - - - - - - - - TOTAL PREPETITION LIABILITIES - - 6,034 228 - - - - ----------------------------------------------------------------------------------------- TOTAL LIABILITIES - - 6,034 228 - - - - TOTAL SHAREHOLDER'S EQUITY / (DEFICIT) - - (6,034) (228) - - - - ----------------------------------------------------------------------------------------- TOTAL LIABILITIES & EQUITY / (DEFICIT) - - - - - - - - ========================================================================================= (TABLE CONTINUED) Polaroid OnLine Services, US Inc. Subtotal Adjustments Eliminations Total ASSETS TOTAL CASH - 4,812,308 - - 4,812,308 NET RECEIVABLES - THIRD PARTY - 0 - - 0 NET RECEIVABLES - INTERCOMPANY - - - - - NET INVENTORIES - - - - - TOTAL PREPAID EXPENSES - - - - - ------------------------------------------------------------- TOTAL CURRENT ASSETS - 4,812,308 - - 4,812,308 ------------------------------------------------------------- NET FIXED ASSETS - - - - - INVESTMENT IN DEBTOR SUBSIDIARY COMPANIES - 78,611,939 (78,461,939) (150,000) (0) OTHER NONCURRENT ASSETS - 462,226 - - 462,226 TOTAL NON-CURRENT ASSETS - 79,074,165 (78,461,939) (150,000) 462,226 ------------------------------------------------------------- TOTAL ASSETS - 83,886,473 (78,461,939) (150,000) 5,274,534 ============================================================= LIABILITIES POST-PETITION NOTES - - - - - POST-PETITION PAYABLES - THIRD PARTY - 623,669 - - 623,669 POST-PETITION PAYABLES - INTERCOMPANY - - - - - TOTAL POST-PETITION ACCRUALS - 352,796 - - 352,796 ------------------------------------------------------------- TOTAL POST-PETITION CURRENT LIABILITIES - 976,465 - - 976,465 TOTAL POST-PETITION NON-CURRENT LIABILITIES - - - - - TOTAL PREPETITION LIABILITIES - 860,978,847 - - 860,978,847 ------------------------------------------------------------- TOTAL LIABILITIES - 861,955,311 - - 861,955,311 TOTAL SHAREHOLDER'S EQUITY / (DEFICIT) - (778,068,838)(78,461,939) (150,000) (856,680,777) ------------------------------------------------------------- TOTAL LIABILITIES & EQUITY / (DEFICIT) - 83,886,473 (78,461,939) (150,000) 5,274,534 =============================================================
POLAROID CORPORATION AND DEBTOR SUBSIDIARY COMPANIES Schedule of Pre-petition Liabilities As of November 2, 2003 (in U.S. $'s) Polaroid Polaroid Latin Asia Polaroid Polaroid America Pacific Inner Eyewear, Corporation Corp. Ltd. City, Inc. Inc. ------------------------------------------------------------------ CURRENT LIABILITIES Pre-Petition Notes: Bank Notes 17,858,030 - - - - Non-Interest Overdrafts - - - - - Current Long-Term Debt 573,900,990 - - - - ---------------------------------------------------------------- PRE-PETITION NOTES 591,759,019 - - - - Pre-Petition Payables Trade Accounts Payable 58,663,695 162,520 - 77,106 - Interco Payables-US to Foreign - - - - - Interco Payables-Foreign to US - - - - - Interco Payables-Domestic Subs - - - - - Interco Payables-Foreign Subs - - - - - ---------------------------------------------------------------- TOTAL PRE-PETITION PAYABLES 58,663,695 162,520 - 77,106 - Pre-Petition Accruals: Reserve Restructuring 11,452,323 - - - - Accrued Payroll & Related Expenses 8,692,842 - 64,705 - - Accrued Tax & Gov't Accounts - - - - - Accrued Income Taxes (17,456) - - - - Deferred Income Tax - Current - - - - - Accrued Warranty - - - - - Other Accrued Liabilities 48,992,819 31,007 - - - Post-Retirement Medical - - - - - Post-Employment Benefits - - - - - Other Accrued Taxes 11,984,603 - - - - ---------------------------------------------------------------- TOTAL PRE-PETITION ACCRUALS 81,105,132 31,007 64,705 - - ---------------------------------------------------------------- TOTAL PRE-PETITION CURRENT LIABILITIES 731,527,846 193,527 64,705 77,106 - ---------------------------------------------------------------- NON-CURRENT LIABILITIES Pre-Petition Non-Current Liabilities: Post-Retirement Medical - - - - - Post-Employment Benefits 31,510,165 - - - - Long-Term Debt - - - - - Deferred Taxes 1,891,782 8,639 - - - Other 94,670,253 - - - - ---------------------------------------------------------------- TOTAL PRE-PETITION NON-CURRENT LIABILITIES 128,072,199 8,639 - - - ---------------------------------------------------------------- TOTAL PRE-PETITION LIABILITIES 859,600,046 202,165 64,705 77,106 - ================================================================ (TABLE CONTINUED) Polaroid Digital Polaroid ID Polaroid Sub Debt PRD PRD Polaroid Solutions, Systems, Malaysia, Partners Investment, Capital, Memorial Inc. Inc. Ltd. Corp. Inc. Inc. Drive LLC ------------------------------------------------------------------------------------------------------- CURRENT LIABILITIES Pre-Petition Notes: Bank Notes - - - - - - - Non-Interest Overdrafts - - - - - - - Current Long-Term Debt - - - - - - - ---------------------------------------------------------------------------------------------------- PRE-PETITION NOTES - - - - - - - Pre-Petition Payables Trade Accounts Payable - 614,635 - - - - - Interco Payables-US to Foreign - - - - - - - Interco Payables-Foreign to US - - - - - - - Interco Payables-Domestic Subs - - - - - - - Interco Payables-Foreign Subs - - - - - - - ---------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION PAYABLES - 614,635 - - - - - Pre-Petition Accruals: Reserve Restructuring - - - - - - - Accrued Payroll & Related Expenses - - - - - - - Accrued Tax & Gov't Accounts - - - - - - - Accrued Income Taxes - 214,177 199,078 - - - - Deferred Income Tax - Current - - - - - - - Accrued Warranty - - - - - - - Other Accrued Liabilities - - - 673 - - - Post-Retirement Medical - - - - - - - Post-Employment Benefits - - - - - - - Other Accrued Taxes - - - - - - - ---------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION ACCRUALS - 214,177 199,078 673 - - - ---------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION CURRENT LIABILITIES - 828,812 199,078 673 - - - ---------------------------------------------------------------------------------------------------- NON-CURRENT LIABILITIES Pre-Petition Non-Current Liabilities: Post-Retirement Medical - - - - - - - Post-Employment Benefits - - - - - - - Long-Term Debt - - - - - - - Deferred Taxes - - - - - - - Other - - - - - - - ---------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION NON-CURRENT LIABILITIES - - - - - - - ---------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION LIABILITIES - 828,812 199,078 673 - - - ==================================================================================================== (TABLE CONTINUED) Polaroid Asia Polaroid Polaroid Pacific International Polaroid Dry Partners, Polint, International, PMC, Polaroid Mag Media, Eyewear Imaging Inc. Inc. Inc. Inc. Corp. Limited Far East Inc. LLC ------------------------------------------------------------------------------------------------- CURRENT LIABILITIES Pre-Petition Notes: Bank Notes - - - - - - - - Non-Interest Overdrafts - - - - - - - - Current Long-Term Debt - - - - - - - - ------------------------------------------------------------------------------------------------- PRE-PETITION NOTES - - - - - - - - Pre-Petition Payables Trade Accounts Payable - - - - - - - - Interco Payables-US to Foreign - - - - - - - - Interco Payables-Foreign to US - - - - - - - - Interco Payables-Domestic Subs - - - - - - - - Interco Payables-Foreign Subs - - - - - - - - ------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION PAYABLES - - - - - - - - Pre-Petition Accruals: Reserve Restructuring - - - - - - - - Accrued Payroll & Related Expenses - - 6,034 - - - - - Accrued Tax & Gov't Accounts - - - - - - - - Accrued Income Taxes - - - 228 - - - - Deferred Income Tax - Current - - - - - - - - Accrued Warranty - - - - - - - - Other Accrued Liabilities - - - - - - - - Post-Retirement Medical - - - - - - - - Post-Employment Benefits - - - - - - - - Other Accrued Taxes - - - - - - - - ------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION ACCRUALS - - 6,034 228 - - - - ------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION CURRENT LIABILITIES - - 6,034 228 - - - - ------------------------------------------------------------------------------------------------- NON-CURRENT LIABILITIES Pre-Petition Non-Current Liabilities: Post-Retirement Medical - - - - - - - - Post-Employment Benefits - - - - - - - - Long-Term Debt - - - - - - - - Deferred Taxes - - - - - - - - Other - - - - - - - - ------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION NON-CURRENT LIABILITIES - - - - - - - - ------------------------------------------------------------------------------------------------- TOTAL PRE-PETITION LIABILITIES - - 6,034 228 - - - - ================================================================================================= (TABLE CONTINUED) Polaroid OnLine Services, US Inc. Subtotal Adjustments Eliminations Total ----------------------------------------------------------------------- CURRENT LIABILITIES Pre-Petition Notes: Bank Notes - 17,858,030 - - 17,858,030 Non-Interest Overdrafts - - - - - Current Long-Term Debt - 573,900,990 - - 573,900,990 ----------------------------------------------------------------------- PRE-PETITION NOTES - 591,759,019 - - 591,759,019 Pre-Petition Payables Trade Accounts Payable - 59,517,956 - - 59,517,956 Interco Payables-US to Foreign - - - - - Interco Payables-Foreign to US - - - - - Interco Payables-Domestic Subs - - - - - Interco Payables-Foreign Subs - - - - - ----------------------------------------------------------------------- TOTAL PRE-PETITION PAYABLES - 59,517,956 - - 59,517,956 Pre-Petition Accruals: Reserve Restructuring - 11,452,323 - - 11,452,323 Accrued Payroll & Related Expenses - 8,763,581 - - 8,763,581 Accrued Tax & Gov't Accounts - - - - - Accrued Income Taxes - 396,027 - - 396,027 Deferred Income Tax - Current - - - - - Accrued Warranty - - - - - Other Accrued Liabilities - 49,024,499 - - 49,024,499 Post-Retirement Medical - - - - - Post-Employment Benefits - - - - - Other Accrued Taxes - 11,984,603 - - 11,984,603 ----------------------------------------------------------------------- TOTAL PRE-PETITION ACCRUALS - 81,621,033 - - 81,621,033 ----------------------------------------------------------------------- TOTAL PRE-PETITION CURRENT LIABILITIES - 732,898,009 - - 732,898,009 ----------------------------------------------------------------------- NON-CURRENT LIABILITIES Pre-Petition Non-Current Liabilities: Post-Retirement Medical - - - - - Post-Employment Benefits - 31,510,165 - - 31,510,165 Long-Term Debt - - - - - Deferred Taxes - 1,900,421 - - 1,900,421 Other - 94,670,253 - - 94,670,253 ---------------------------------------------------------------- TOTAL PRE-PETITION NON-CURRENT LIABILITIES - 128,080,838 - - 128,080,838 ---------------------------------------------------------------- TOTAL PRE-PETITION LIABILITIES - 860,978,847 - - 860,978,847 ================================================================
Polaroid Corporation Statement of Operations and Taxes For the period 9/29/03 to 11/2/03 (in U.S.$'s) Debtor Name: Polaroid Corporation Case No: 01-10864 Except for those taxes triggered by the sale transaction on July 31, 2002, for for which funds were either paid or provided for in a tax escrow account, no additional taxes were incurred or paid by Primary PDC, Inc. (formerly Polaroid Corporation) or the other Debtor companies in October 2003.
[JPMorganChase Letterhead] October 1, 2003 - October 31, 2003 Page 1 of 1 507 000 TS Business Statement POLAROID-OEP IMAGING CORPORATION Customer Service ATTN: KEVIN R. POND If there are any questions regarding PRIMARY PDC INC. your account, please call your 1265 MAIN STREET Relationship Manager. WALTHAM MA 02451 Primary Account Number 507-895053 Number of Checks Enclosed: 0 Money Market Account 507-895053 POLAROID-OEP IMAGING CORPORATION ---------------- ----------------------------------------------------------- --------------------------------------------------- Summary Number Amount Opening Balance $4,049,406.92 ............................. ........ ............................................ ......................... Deposits and Credits 1 $1,725.83 ............................. ........ ............................................ ......................... Withdrawals and Debits 1 $1,940,213.00 ............................. ........ ............................................ ......................... Checks Paid $0.00 ----------------------------- -------- --------------------------------------------- ------------------------- Ending Balance $2,110,919.75 ----------------------------- -------- ------------------------- -------------------------------------------- Average Balance $3,986,819.48 ............................. ........ ......................... ................. ......................... Interest Paid for 31 Day(s) $1,725.83 Interest Credited Year to Date $21,971.75 ......................... Interest Rate(s): 10/24 to 10/26 at 0.51% 10/27 to 10/27 at 0.53% 10/28 to 10/28 at 0.48% 10/29 to 10/29 at 0.47% 10/30 to 10/30 at 0.52% 10/31 to 10/31 at 0.53% ---------------- ----------------------------- ----------------------------- ----------------- -------------------------------- Deposits and Date Description Amount Credits ............................. --------..................... ................. ................................ 10/31 Interest Paid $1,725.83 --------------------------------------------------------------................. -------------------------------- Total $1,725.83 ---------------- ----------------------------- -------- ------------------- ----------------- -------------------------------- Withdrawals Date Description Amount and Debits ............................. ........ ................... ................. ............................ 10/31 Global Plus Debt Memorandum $1,940,213.00 10202920.2 0011859160 PER SECT 2.1 OF AGMT AND JOINT INSTRUCTIONS DTD 10/24/03 -----------------------------------........--................... ----------------- ---------------------------- Total $1,940,213.00 ---------------- --------------------------------- -------- ------------------- ----------------- ---------------------------- Daily Balance Date Balance Date Balance Date Balance ................................. ................... .......................... ................................. ................... .......................... 10/31 $2,110,919.78
[The Bank of New York Letterhead] Business Banking Statement Period: 10/01/03 to 10/31/03 Page: 1 of 4 Enclosures: 51 4873 --9--K PRIMARY PDC, INC 1265 MAIN ST WALTHAM, MA 02451-1743 Summary Credit of Accounts Account Type Account No. Assets Loans Available Checking Account 690-3534891 155,000.00 Mutual Fund 76001691637 2,564,971.72 TOTAL 2,719,971.72 .00 .00 ------------------------------------------------------ ------------------- --------------------------------- Mutual Fund MUTUAL FUNDS Information - are NOT insured by the FDIC - are NOT deposits or other obligations of The Bank of New York and are NOT guaranteed by The Bank of New York; and - are subject to investment risks, including possible loss of principal amount invested. Check Activity Account No. 690-3534891 Invest Date Description Debits Credits Balance 10/01 OPENING BALANCE 155,000.00 -------- --------------------------------------------- ------------------- ------------------------------- 10/01 1 CHECK 500.00- 154,500.00 10/01 CHECKINVEST TRANSFER 500.00 155,000.00 10/02 B/O: POLAROID CORP. 9.25 155,009.25 2003100201228NPN 10/06 2 CHECKS 13,312.32- 141,696.93 10/06 CHECKINVEST TRANSFER 13,303.07 155,000.00 10/08 3 CHECKS 13,540.71- 141,459.29 10/08 CHECKINVEST TRANSFER 13,540.71 155,000.00 10/10 4 CHECKS 85,009.36- 69,990.64 10/10 CHECKINVEST TRANSFER 85,009.36 155,000.00 10/14 7 CHECKS 115,742.54- 39,257.46 10/14 CHECKINVEST TRANSFER 115,742.54 155,000.00 10/15 3 CHECKS 15,000.00- 140,000.00 10/15 CHECKINVEST TRANSFER 15,000.00 155,000.00 10/16 REFER TO SERVICE CHARGE ADVICE 49.69- 154,950.31 10/16 3 CHECKS 18,148.70- 136,801.61 10/16 CHECKINVEST TRANSFER 18,198.39 155,000.00 10/17 1 CHECK 5,000.00- 150,000.00 10/17 CHECKINVEST TRANSFER 5,000.00 155,000.00 10/21 4 CHECKS 125,990.75- 29,009.25
EXHIBIT B Exhibit B Monthly Operating Reports Service Parties Kevin Pond Polaroid Corporation f/k/a Primary PDC, Inc. 1265 Main Street Waltham, MA 02451 By Overnight Courier Mark Kenney, Esq. Office of the U.S. Trustee 844 King Street Wilmington, DE 19899 By Hand-Delivery Brendan Linehan Shannon, Esq. Young Conaway Stargatt & Taylor LLP The Brandywine Building, 17th Floor 1000 West Street P.O. Box 391 Wilmington, DE 19899 By Hand-Delivery Fred Hodara, Esq. Philip Dublin, Esq. Akin, Gump, Strauss, Hauer & Feld, L.L.P. 590 Madison Avenue New York, NY 10022 By Overnight Courier Marshall Huebner, Esq. Davis, Polk & Wardwell 450 Lexington Avenue New York, NY 10017 By Overnight Courier Robert Scheibe, Esq. Morgan, Lewis & Bockius LLP 101 Park Avenue New York, NY 10178 By Overnight Courier Adam Harris, Esquire O'Melveny & Myers LLP 30 Rockefeller Plaza New York, New York 10112-0002 By Overnight Courier William H. Sudell, Jr., Esq. Morris Nichols, Arsht & Tunnell 1201 North Market Street Wilmington, DE 19899 By Hand-Delivery Patricia Schrage, Esq. Securities & Exchange Commission New York Office Branch/Reorganization 233 Broadway New York, NY 10279 By Overnight Courier Perry M. Mandarino Partner Traxi LLC 212 West 35th Street New York, New York 10001 By Overnight Courier Laura Davis Jones, Esq. Rachel Lowy Werkheiser, Esq. Pachulski Stang Ziehl Young Jones & Weintraub P.C. 919 N. Market Street, 16th Floor P.O. Box 8705 (19899) Wilmington, DE 19801 By Hand-Delivery Marc A. Beilinson, Esq. Ellen M. Bender, Esq. Pachulski Stang Ziehl Young Jones & Weintraub P.C. 10100 Santa Monica Blvd., Suite 1100 Los Angeles, CA 90067 By Overnight Courier Michael E. Foreman, Esq. James D. Meade, Esq. Proskauer Rose LLP 1585 Broadway New York, NY 10036-8299 By Overnight Courier