KUSHNER-LCOKE CO. FORM 8-K DATED 2-27-2002

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SoL9dDmNxJskjwCsTA+QMlt/T1dqgM855wKfde4b4gWzSKWqatAD7Ix6aRLgBdqZ Rwt6z2KYHr2dcaxXJtS/2A== 0000950148-02-000459.txt : 20020414 0000950148-02-000459.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950148-02-000459 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020227 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KUSHNER LOCKE CO CENTRAL INDEX KEY: 0000842009 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MOTION PICTURE & VIDEO TAPE PRODUCTION [7812] IRS NUMBER: 954079057 STATE OF INCORPORATION: CA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10661 FILM NUMBER: 02560020 BUSINESS ADDRESS: STREET 1: 11601 WILSHIRE BLVD 21ST FLR CITY: LOS ANGELES STATE: CA ZIP: 95202 BUSINESS PHONE: 3104812018 MAIL ADDRESS: STREET 1: 11601 WILSHIRE BLVD STREET 2: 21ST FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90025 8-K 1 v79504e8-k.htm FORM 8-K DATED 2-27-2002 KUSHNER-LCOKE CO. FORM 8-K DATED 2-27-2002

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

__________

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report: February 27, 2002

THE KUSHNER-LOCKE COMPANY
(Exact name of registrant as specified in its charter)


California	0-17295	95-4079057
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)


11601 Wilshire Boulevard, 21st Floor Los Angeles, California (Address of Principal Executive Offices)		90025 (Zip Code)

(310) 481-2000
(Registrant’s telephone number, including area code)

TABLE OF CONTENTS


	Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.
EXHIBIT 99.2

Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.

     (a) Financial Statements of Business Acquired.



     Not Applicable.

     (b) Pro Forma Financial Information.



     Not Applicable.


	Exhibit 99.2	Monthly Operating Report of the Registrant for the calendar month from January 1, 2002 to February 1, 2002.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 27, 2002 THE KUSHNER-LOCKE COMPANY

By: /s/ Donald Kushner

Donald Kushner
Co-Chairman of the Board and
Co-Chief Executive Officer

EX-99.2 3 v79504ex99-2.txt EXHIBIT 99.2 OFFICE OF THE UNITED STATES TRUSTEE - --------------------------------------------------------------- ----------------------------------------------------------- In re: DEBTOR IN POSSESSION INTERIM STATEMENT The Kushner-Locke Company, et al. Debtors Page 1 of 3 Statement Number: 3 - --------------------------------------------------------------- ------------- Chapter 11 For the Period FROM: 1/1/2002 ------------- Case No. LA 01-44828-SB (Administratively Consolidated with TO: 2/1/2002 Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01- ------------- 44833-SB through LA 01-44836-SB; and LA 01-44841-SB) - --------------------------------------------------------------- ----------------------------------------------------------- ----------------------------------------------------------- Kushner-Locke Post Production CASH ACTIVITY ANALYSIS (Cash Basis Only) Collateral Concentration Payroll Payroll Account Account Account Account ----------------------------------------------------------- Balance before Statement #1 $ 268,333.21 $ 65,956.21 $ 1,844.78 $ 257.48 ----------------------------------------------------------- A. Total Receipts per all Prior Interim Statements 548,498.94 138,541.21 67,062.51 -- ----------------------------------------------------------- B. Less: Total Disbursements per all Prior Statements 135,000.00 171,365.05 67,255.96 75.76 ----------------------------------------------------------- C. Beginning Balance $ 681,832.15 $ 33,132.37 $ 1,651.33 $ 181.72 ----------------------------------------------------------- D. Receipts during Current Period Description CCV - Jack Reed 5/Serpent's Lair royalties 5,910.89 Edgemont - Black & White royalties 1,924.07 New World - various titles 5,832.00 COBRA payments - former employees 2,907.76 Cinevision - parking/insurance payments 1,754.42 Mongkol - various titles 52,322.00 Kirchmedia - various titles 495,965.00 Swift/Rivamode - Mistress Club 9,975.00 Daro - November/December payments 14,985.02 CCV - Jack Reed 4 royalties 474.11 A & E - 218.70 Mongkol - various titles 4,887.00 Ella - various titles 12,298.75 Spartan - They Nest 16,000.00 Nu Metro - material payment 725.00 Cinevision - insurance payments 1,534.96 Flextech - various titles 19,970.00 Wire transfer between accounts 103,000.00 Wire transfer between accounts 58,000.00 Wire transfer between accounts 75,000.00 Wire transfer between accounts 130,000.00 Interest 738.36 Payroll transfers 17,602.09 Payroll transfers 10,413.02 Payroll transfers 5,100.36 Payroll transfers 43,177.08 10,767.39 Payroll transfers 27,412.97 Payroll transfers 6,659.75 Payroll transfers 629.28 TOTAL RECEIPTS THIS PERIOD 589,903.90 424,519.14 110,994.55 10,767.39 ----------------------------------------------------------- E. Balance Available (C plud D) $1,271,736.05 $457,651.51 $112,645.88 $10,949.11 ----------------------------------------------------------- F. Less: Disbursements during Current Period: Date Check No. Payee/Purpose - --------------------------------------------------- 1/9/2002 Wire transfer between accounts 103,000.00 1/16/2002 Wire transfer between accounts 58,000.00 1/23/2002 Wire transfer between accounts 75,000.00 1/30/2002 Wire transfer between accounts 130,000.00 1/18/2002 Wire transfer to Morgan Lewis - banks attys 100,207.34 1/14/2002 Wire transfer Irwin Friedman Board fees 2,083.00 1/14/2002 Wire transfer Stuart Hersch Board fees 2,083.00 1/14/2002 Wire transfer John Lannan Board fees 2,500.00 1/14/2002 Wire transfer Far East Dark Prince 5,547.42 1/14/2002 Wire transfer Far East Wolfgirl 6,937.86 1/14/2002 Wire transfer Far East Harvard Man 29,727.54 1/25/2002 Wire transfer RR Donnelley Bankruptcy mailings 12,073.06 1/3/2002 37047 AnB Stationary 126.33 1/3/2002 37048 United States Postal S 500.00 1/4/2002 37051 U.S. Bankcorp 1,371.63

- -------------------------------------------------------------------------------- DEBTOR IN POSSESSION INTERIM STATEMENT NO: 3 Page 2 of 3 - -------------------------------------------------------------------------------- F. Less: Disbursements during Current Period (continued): 1/4/2002 37052 U.S. Bankcorp 4,202.59 1/7/2002 37053 Ampco Systems Parking 2,995.99 1/7/2002 37054 Blue Cross 10,337.00 1/7/2002 37055 Fortis Benefits Insurance 1,484.78 1/8/2002 37056 Adelphia 111.05 1/8/2002 37057 Ayelet Agmon 532.50 1/8/2002 37058 All Nations Forwarding 272.00 1/8/2002 37059 Bonded Services, Inc 6,445.55 1/8/2002 37060 Bowne of Los Angeles, 408.00 1/8/2002 37061 DEAN CLEVERDON 1,760.00 1/8/2002 37062 Eagle 184.91 1/8/2002 37063 Federal Express 41.12 1/8/2002 37064 File Keepers LLC 45.00 1/8/2002 37065 Neopost Leasing 288.52 1/8/2002 37066 Scottel Voice and Data 1,116.00 1/10/2002 37067 Petty Cash Reimbursement 300.00 1/10/2002 37068 New Wave Entertainment 1,237.50 1/10/2002 37069 Point 360 801.25 1/11/2002 37071 USI of Southern Califo 4,553.00 1/14/2002 37072 All Nations Forwarding 155.00 1/14/2002 37073 ATT Wireless 244.81 1/14/2002 37074 Case Credit 2,282.99 1/14/2002 37075 DHL World Wide Express 603.69 1/14/2002 37076 Digital Image 3,352.00 1/14/2002 37078 NTFC Capital Co 2,894.05 1/14/2002 37079 Financial Decisions 1,793.75 1/14/2002 37080 Zerolag Communications 1,300.00 1/16/2002 37081 United Sates Trustee 1,250.00 1/16/2002 37082 Still Photo Lab, Inc 242.60 1/16/2002 37083 New Wave Entertainment 26.40 1/16/2002 37084 New Wave Entertainment 3,382.50 1/16/2002 37085 Casablanca Continuity 2,500.00 1/17/2002 37086 Verizon California 390.41 1/17/2002 37087 Nextel 36.94 1/17/2002 37088 Pacific Bell 2,091.03 1/17/2002 37089 Sprint 1,552.67 1/17/2002 37090 Scottel Voice and Data 558.00 1/17/2002 37091 ATT CAlling Card 1,270.79 1/17/2002 37092 FoodCraft 369.39 1/18/2002 37093 Arden Realty LTD Partn 28,083.67 1/18/2002 37094 DHL World Wide Express 87.07 1/18/2002 37095 Scottel Voice and Data 1,116.00 1/23/2002 37096 DEAN CLEVERDON 1,760.00 1/23/2002 37097 Ayelet Agmon 757.50 1/24/2002 37098 AnB Stationary 219.38 1/25/2002 37099 Still Photo Lab, Inc 36.00 1/25/2002 37100 New Wave Entertainment 206.00 1/25/2002 37101 Financial Decisions 4,605.00 1/28/2002 37102 New Wave Entertainment 153.00 1/28/2002 37103 Still Photo Lab, Inc 49.00 1/28/2002 37104 AnB Stationary 1,152.29 1/28/2002 37105 Arden Realty LTD Partn 28,083.67 1/28/2002 37106 Neopost Leasing 281.33 1/28/2002 37107 Nextel 127.62 1/29/2002 37108 Fotokem 398.44 1/30/2002 37109 Blue Cross 11,958.00 1/30/2002 37110 Fortis Benefits Insurance 1,527.55 1/31/2002 37111 Ampco Systems Parking 2,803.56 1/08/2002 Payroll transfer 17,602.09 1/08/2002 Payroll transfer 10,413.02 1/08/2002 Payroll transfer 5,100.36 1/22/2002 Payroll transfer 43,177.08 1/22/2002 Payroll transfer 10,767.39 1/23/2002 Payroll transfer 27,412.97 1/23/2002 Payroll transfer 6,659.75

- -------------------------------------------------------------------------------- DEBTOR IN POSSESSION INTERIM STATEMENT NO: 3 Page 3 of 3 - -------------------------------------------------------------------------------- F. Less: Disbursements during Current Period (continued): 1/23/2002 Payroll transfer 629.28 1/10/2002 Payroll taxes 10,413.02 1/10/2002 Payroll - to various employees 22,578.13 1/10/2002 ADP Fees 832.75 1/23/2002 Payroll taxes 27,412.97 2,808.70 1/23/2002 Payroll - to various employees 49,336.21 7,877.17 1/23/2002 Garnishment 690.94 12/26/2001 ADP Fees 142.77 TOTAL DISBURSEMENTS THIS PERIOD: 466,207.34 331,530.64 111,406.79 10,685.87 ----------------------------------------------------------- G. Ending Balance (E less F) $805,528.71 $126,120.87 $ 1,239.09 $ 263.24 -----------------------------------------------------------

H. (1) Collateral Account: a) Depository Name and Location: Chase Bank 1 Chase Manhattan Plaza, New York, NY 10081 b) Account Number: 323221556 (2) Concentration Account: a) Depository Name and Location: Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024 b) Account Number: 1891935460 (3) Kushner-Locke Payroll Account: a) Depository Name and Location: Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024 b) Account Number: 1890694506 (4) Post Production Payroll Account: a) Depository Name and Location: Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024 b) Account Number: 1890694639 I: Other monies on hand: The Kushner Locke Company PWI account 1891215236 $1,000.00 Bank of Scotland - Pinocchio 3549485 1,237,617.11 Pounds Sterling Time Deposit (KL's interest is 70%) Bank of Scotland - Basil 3626816 192,598.25 Pounds Sterling Time Deposit (KL's interest is 80%) Allied Pinocchio 10747301 4,423.11 Pounds Sterling KLI-UK 10008956 No recent statements - Less than 1,000 Pounds Additionally, the Company maintains a minimal amount of Petty Cash (less than $500). Joint Venture Accounts: KL MDP Sensation 60-066-930 $17,724.61 KL\7 Venture 1890-69-6360 9,221.97 Denial Venture 1890-69-6501 41,547.11 Cracker LLC 1891-04-1665 1,000.00

I, Brett Robinson, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge. /s/ BRETT ROBINSON ---------------------------------------- Debtor in Possession OFFICE OF THE UNITED STATES TRUSTEE - ----------------------------------------------------------- ------------------------------------------------ In re: DEBTOR IN POSSESSION OPERATING REPORT The Kushner-Locke Company, et al. Debtors Report Number: 3 Page 1 of 2 ------------ Chapter 11 For the Period FROM: 1/1/02 ------------ Case No. LA 01-44828-SB (Administratively Consolidated with TO: 2/1/02 Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01- ------------ 44833-SB through LA 01-44836-SB; and LA 01-44841-SB) - ----------------------------------------------------------- ------------------------------------------------ 1 Profit and Loss Statement (Accrual Basis Only) A. Related to Business Operations Gross Sales $ 194,088 ----------- Costs Related to Revenues (Film Cost Amortization) 80,672 ----------- Gross Profit 113,416 ------------ Less: Operating Expenses Officer Compensation 46,923 ----------- Salaries and Wages - Other Employees 66,439 ----------- Total Salaries and Wages 113,362 ----------- Employee Benefits and Pensions 31,706 ----------- Employer Payroll Taxes/Fees 13,210 ----------- Other Taxes -- ----------- Total Taxes 13,210 ----------- Rent and Lease Expense (including parking) 61,967 ----------- Distribution/Delivery Expenses 12,385 ----------- Interest Expense -- ----------- Insurance 4,553 ----------- Automobile Expense/Mileage -- ----------- Utilities (incl. Phone, phone equipment, internet) 12,809 ----------- Depreciation and Amortization -- ----------- Business Equipment Leases 2,853 ----------- Business Expense reimbursement 5,574 ----------- Storage Expense 6,491 ----------- Supplies, Office Expenses, Photocopies, etc. 16,492 ----------- Bad Debts -- ----------- Miscellaneous Operating Expenses -- ----------- Total Operating Expenses 281,402 ----------- Net Gain/Loss from Business Operations (167,986) ------------ B. Not related to Business Operations Income Interest Income 738 ----------- Other Non-Operating Revenues -- ----------- Gross Proceeds on Sale of Assets -- ----------- Less: Original Cost of Assets plus expenses of sale -- ----------- Net Gain/Loss on Sale of Assets -- ----------- Total Non-Operating Income 738 ------------ Expenses Not Related to Business Operations Legal and Professional Service Fees (Covered by prepetition retainer) -- ----------- Other Non-Operating Expenses (Board/Trustee fees) 7,916 ----------- Total Non-Operating Expenses 7,916 ------------ NET INCOME/(LOSS) FOR PERIOD $ (175,163) ============

- -------------------------------------------------------------------------------- DEBTOR IN POSSESSION OPERATING REPORT NO: 2 Page 2 of 2 - -------------------------------------------------------------------------------- 2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):
----------------------- Accounts Accounts Payable Receivable ----------------------- Current Under 30 days 15,675 14,700 ----------------------- Overdue 31-60 days -- 75,000 ----------------------- Overdue 61-90 days -- 91,250 ----------------------- Overdue 91-120 days -- 3,026,528 ----------------------- Overdue Over 121 days -- 5,011,406 ----------------------- Due in the Future -- 4,244,064 ----------------------- TOTAL 15,675 12,462,948 -----------------------
3 Statement of Status of Payments to Secured Creditors and Lessors: No payments to Secured Creditors or Lessors were paid or payable during the reporting period. 4 Tax Liability No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
---------- -------- --------------- ------------ 5 Insurance Coverage Carrier/ Amount of Policy Premium Paid Agent Name Coverage Expiration Date Through Date ---------- -------- --------------- ------------ Worker's Compensation (RENEWED 1/11/02) St. Paul 1,000,000 1/14/03 1/14/03 Commercial Property (including Liability & Auto) St. Paul 2,000,000 2/14/02 2/14/02 Commercial Umbrella St. Paul 10,000,000 2/14/02 2/14/02 Guild Travel Accident Coverage Hartford 500,000 2/14/02 2/14/02 Crime/Fiduciary Liability Federal 1,000,000 2/14/02 2/14/02 Foreign GL & WC ACE American 1,000,000 2/14/02 2/14/02 Errors & Omissions - Productions AIG 6,000,000 3/3/02 3/3/02 Errors & Omissions - Library St. Paul 3,000,000 3/3/02 3/3/02 Directors and Officers Nat'l Union 10,000,000 8/21/02 8/21/02 Employment Practices Liability Nat'l Union 5,000,000 10/31/02 10/31/02 Life, Peter Locke: (Beneficiary: Company) Jefferson 5,000,000 2/14/02 2/14/02 Life, Donald Kushner: (Beneficiary: Company) Lincoln 5,000,000 2/14/02 2/14/02
6 Questions: A. Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee? [ ] Yes Explain: [x] No B. Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court? [ ] Yes Explain: [x] No 7 Statement on Unpaid Professional Fees (Postpetition Amounts Only) No post-petition Professional Fees went unpaid during the reporting period. 8 Narrative Report of Significant Events and Events out of the Ordinary Course of Business: None. 9 Quarterly Fees: None due. Quarterly Fee I, Brett Robinson, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge. /s/ BRETT ROBINSON ------------------------------------- Debtor in Possession ~~-----END PRIVACY-ENHANCED MESSAGE-----~~

Table of Contents

Table of Contents


Dated: February 27, 2002	THE KUSHNER-LOCKE COMPANY

	By:	/s/ Donald Kushner

		Donald Kushner Co-Chairman of the Board and Co-Chief Executive Officer