8-K

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: July 1, 2002

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

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

8671 Wilshire Blvd., Suite 714
Beverly Hills, California
(Address of Principal Executive Offices)
90211
(Zip Code)

(310) 358-5508
(Registrant’s telephone number, including area code)

TABLE OF CONTENTS

	Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.
SIGNATURE
EXHIBIT 99.1
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.
(c)	Exhibits.

Exhibit 99.1. Monthly Operating Report of the Registrant for the calendar month from March 1, 2002 to March 31, 2002.

Exhibit 99.2. Monthly Interim Statement of the Registrant for the calendar month from March 1, 2002 to March 31, 2002.

SIGNATURE

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

Dated: July 1, 2002	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser Responsible Officer

EX-99.1 3 v82755exv99w1.htm EXHIBIT 99.1

Exhibit 99.1

Office of the United States Trustee

Page 1 of 2

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	5
For the Period FROM:	03/1/2002
TO:	03/31/2002

In re:

     The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively Consolidated with 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				$	—
	Costs Related to Revenues (Film Cost Amortization)					—
			Gross Profit					—
	Less: Operating Expenses
	Officer Compensation			—
	Salaries and Wages — Other Employees			5,452
		Total Salaries and Wages				5,452
		Employee Benefits and Pensions				—
	Employer Payroll Taxes/Fees			—
	Other Taxes			—
		Total Taxes				—
	Rent and Lease Expense (including parking)			8,996
	Distribution/Delivery Expenses			90
	Interest Expense			—
	Insurance
	Automobile Expense/Mileage			136
	Utilities (incl. Phone, phone equipment, internet)			7,887
	Depreciation and Amortization			—
	Business Equipment Leases
	Business Expense reimbursement			132
	Storage Expense			6,212
	Supplies, Office Expenses, Photocopies, etc.
	Bad Debts			—
	Miscellaneous Operating Expenses			476
		Total Operating Expenses				29,381
			Net Gain/Loss from Business Operations					(29,381	)
B. Not related to Business Operations
	Income
		Interest Income				546
		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						546
	Expenses Not Related to Business Operations
		Legal and Professional Service Fees (Covered by prepetition retainer)				—
		Other Non-Operating Expenses (Board/Trustee fees)				5,418
		Total Non-Operating Expenses						5,418
NET INCOME/(LOSS) FOR PERIOD							$	(34,252	)

Page 2 of 2

DEBTOR IN POSSESSION OPERATING REPORT NO: 2

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

		Accounts		Accounts
		Payable		Receivable
Current Under 30 days					—
Overdue 31-60 days			—		—
Overdue 61-90 days			—
Overdue 91-120 days			—		91,250
Overdue Over 121 days			—		7,542,934
Due in the Future			—		4,032,400
	TOTAL		—		11,666,584

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		01/14/2003		01/14/2003
Commercial Property (RENEWED)	St. Paul		2,000,000		02/14/2003		02/14/2003
Commercial Umbrella	St. Paul		10,000,000		02/14/2002		02/14/2002
Guild Travel Accident Coverage	Hartford		500,000		02/14/2002		02/14/2002
Crime/Fiduciary Liability	Federal		1,000,000		02/14/2002		02/14/2002
Foreign GL & WC	ACE American		1,000,000		02/14/2002		02/14/2002
Errors & Omissions — Productions	AIG		6,000,000		03/03/2002		03/03/2002
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		03/03/2003		03/03/2003
Directors and Officers	Nat'l Union		10,000,000		08/21/2002		08/21/2002
Employment Pracices Liability	Nat'l Union		5,000,000		10/31/2002		10/31/2002
Life, Peter Locke: (Beneficiary: Company)	Jefferson		5,000,000		02/14/2002		02/14/2002
Life, Donald Kushner: (Beneficiary: Company)	Lincoln		5,000,000		02/14/2002		02/14/2002

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

              [X] No

              Explain:

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

              [X] No

              Explain:

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

     Total unpaid post-petition Professional Fees during the reporting period: $292,823

8 Narrative Report of Significant Events and Events out of the Ordinary Course of Business:

     None.

9 Quarterly Fees:

Paid Quarterly Fee

I, Alice Neuhauser, 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.

Debtor in Possession

EX-99.2 4 v82755exv99w2.htm EXHIBIT 99.2

Exhibit 99.2

Office of the United States Trustee

Page 1 of 2

DEBTOR IN POSSESSION INTERIM STATEMENT

Statement Number:	5
For the Period FROM:	03/01/2002
TO:	03/31/2002

In re:

     The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively Consolidated with 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)

CASH ACTIVITY ANALYSIS (Cash Basis Only)

				Collateral		Concentration
				Account		Account
Balance before Statement #1				$	268,333.21	$	65,956.21
A. Total Receipts per all Prior Interim Statements					1,597,997.17		1,255,204.22
B. Less: Total Disbursements per all Prior Statements					1,362,912.51		1,276,554.62
C. Beginning Balance				$	503,417.87	$	44,605.81
D. Receipts during Current Period
Description
03/08/2002			Lion’s Gate Settlement		24,550.00
03/08/2002			Lion’s Gate Settlement		53,450.00
03/08/2002			Lion’s Gate Settlement		80,000.00
03/29/2002			Interest		546.48
03/25/2002			Transfer from Chase		40,000.00
	TOTAL RECEIPTS THIS PERIOD				158,546.48		40,000.00	—	—
E. Balance Available (C plud D)				$	661,964.35	$	84,605.81	$     —	$     —
F. Less: Disbursements during Current Period:
Date		Check No.	Payee/Purpose
03/01/2002		37184	Ayelet Agmon				834.74
03/01/2002		37185	Ampco Parking				1,996.08
03/01/2002		37186	Anthony Fuscillo/mileage				135.79
03/20/2002		37188	Ayelet Agmon				337.50
03/20/2002		37189	AT&T				4,524.74
03/20/2002		37190	AT&T				347.76
03/20/2002		37191	Bonded Services				6,212.10
03/20/2002		37192	Bowne				441.00
03/20/2002		37194	Federal Express				44.63
03/20/2002		37198	John Lannan				1,250.00
03/20/2002		37199	Alice Neuhauser — Parking				131.80
03/20/2002		37200	Pacific Bell				426.30
03/20/2002		37201	Brett Robinson				1,400.00
03/20/2002		37202	Matt Schuller				920.00
03/20/2002		37203	Sprint				1,622.96
03/20/2002		37204	Financial Decisions				35.00
03/20/2002		37205	Sequoia Messenger				44.97
03/20/2002		37206	Brett Robinson				1,600.00
03/20/2002		37207	Matt Schuller				360.00
03/20/2002		37211	Adelphia				39.41
03/20/2002		37213	Pacific Bell				926.15
03/20/2002		37215	Imperial Idaho Investments — rent				2,000.00
03/20/2002		37216	Imperial Idaho Investments — rent				5,000.00
03/22/2002		37217	Keren Aminia				2,374.93
03/22/2002		37218	Kevin Marino				730.75
03/22/2002		37219	Tanya Miller				1,249.87
03/22/2002		37220	Neri Adam				532.50
03/26/2002		wire	Irwin Friedman				2,084.00
03/26/2002 03/25/2002		wire	Stuart Hersch transfer		40,000.00		2,084.00
	TOTAL DISBURSEMENTS THIS PERIOD:				40,000.00		39,686.98	—	—
G. Ending Balance (E less F)				$	621,964.35	$	44,918.83	$     —	$     —

Page 2 of 2

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 3

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

I: Other monies on hand:

The Kushner Locke Company PWI account	1891215236	$	1,000.00
Bank of Scotland — Pinocchio	3549485	1,245,315.38 Pounds Sterling		Time Deposit (KL' s interest is 70%)
Bank of Scotland — Basil	3626816	193,650.39 Pounds Sterling		Time Deposit (KL' s interest is 80%)
Allied Pinocchio	10747301	4,423.11 Pounds Sterling
KLI-UK	10008956	2,446.06 Pound Sterling
Freeway\Kushner-Locke	323-509487	$	255.95

I: Other monies on hand (continued):

Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).

Joint Venture Accounts:

KL MDP Sensation	60-066-930	$	17,572.30
KL\7 Venture	1890-69-6360		9,236.89
Denial Venture	1890-69-6501		41,631.14
Cracker LLC	1891-04-1665		1,000.00
Swing	323-518095		6,957.50

I, Alice Neuhauser, 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.

Debtor in Possession

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EX-99.1

The Kushner-Locke Company Form 8-K

EX-99.2

The Kushner-Locke Company Form 8-K