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: September 9, 2003

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.)

8671 Wilshire Blvd., Suite 714
Beverly Hills, California	90211
(Address of Principal Executive Offices)	(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 Kushner-Locke Company (the “Registrant”) for the calendar month from July 1, 2003 to July 31, 2003.

Exhibit 99.2. Monthly Interim Statement of the Registrant for the calendar month from July 1, 2003 to July 31, 2003.

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: September 9, 2003	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser Responsible Officer

EX-99.1 3 v92995exv99w1.htm EXHIBIT 99.1

Office of the United States Trustee

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)

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	21	Page 1 of 2
For the Period FROM:	7/1/2003
TO:	7/31/2003

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			23,475
		Salaries and Wages — Other Employees			16,333
			Total Salaries and Wages				39,808
			Employee Benefits and Pensions				2,504
		Employer Payroll Taxes/Fees			1,623
		Other Taxes
			Total Taxes				1,623
		Rent and Lease Expense (including parking)			2,360
		Distribution/Delivery Expenses			—
		Interest Expense
		Insurance
		Automobile Expense/Mileage
		Utilities (incl. Phone, phone equipment, internet)			464
		Depreciation and Amortization
		Business Equipment Leases			260
		Business Expense reimbursement
		Storage Expense			6,919
		Supplies, Office Expenses, Photocopies, etc.
		Bad Debts
		Miscellaneous Operating Expenses			1,939
			Total Operating Expenses				55,877
				Net Gain/Loss from Business Operations					(55,877	)
	B. Not related to Business Operations
		Income
			Interest Income
			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						—
		Expenses Not Related to Business Operations
			Legal and Professional Service Fees				299
			Other Non-Operating Expenses (Board/Trustee fees)
			Total Non-Operating Expenses						299
	NET INCOME/(LOSS) FOR PERIOD							$	(56,177	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 21 Page 2 of 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		—
Overdue Over 121 days		—
Due in the Future		8,959		2,096,500
TOTAL		8,959		2,096,500

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)	St. Paul		1,000,000		1/14/2004		1/14/2004
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2004		2/14/2004
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2004		3/3/2004
Employment Practices Liability (RENEWED-run off)	Nat’l Union		5,000,000		10/30/2003		10/30/2003

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?

o	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?

o	Yes	Explain:
x	No

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

Total unpaid post-petition Professional Fees during the reporting period: $367,826.13

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

     None.

9 Quarterly Fees:

     Paid

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.

/s/ Alice Neuhauser

Debtor in Possession

EX-99.2 4 v92995exv99w2.htm EXHIBIT 99.2

Exhibit 99.2

Office of the United States Trustee

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)

DEBTOR IN POSSESSION INTERIM STATEMENT

Page 1 of 3

Statement Number:
For the Period FROM:
TO: 21
7/1/2003
7/31/2003

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				3,942,858.90		3,216,466.40
B.	Less: Total Disbursements per all Prior Statements				3,228,912.51		3,247,759.06
C.	Beginning Balance			$	982,279.60		34,663.55
D.	Receipts during Current Period
	Description
		7/1/2003	BL Distribution Corp		6,835.33
		7/9/2003	Wire Transfer				29,000.00
		7/10/2003	High Fliers		622.68
		7/11/2003	Bank Of Scotland		264,442.19
		7/22/2003	Wire Transfer				27,000.00
		7/31/2003	interest		671.98
	TOTAL RECEIPTS THIS PERIOD				272,572.18		56,000.00		—		—
E.	Balance Available (C plus D)			$	1,254,851.78		90,663.55	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 21 Page 2 of 3

F. Less: Disbursements during Current Period:

Date	Check No.		Payee/Purpose
7/1/2003		37719	Bowne of Los Angeles, Inc			542.00
7/1/2003		37720	Cash			300.00
7/1/2003		37721	Qwest Communications			38.77
7/1/2003		37722	Steven Rosen			1500.00
7/1/2003		37723	SBC			42.40
7/7/2003			ADP Fees			261.86
7/9/2003			ADP Taxes			5532.24
7/9/2003			Wire Transfer	$	29,000.00
7/9/2003		37724	Bonded Services, Inc			6301.55
7/9/2003		37725	Doniger & Fetter			299.49
7/9/2003		37726	William Liebell			1287.50
7/9/2003		37727	Marathon Services, Inc			259.80
7/9/2003		37728	Zerolag Communications, Inc			200.00
7/9/2003		37698	Zerolag (Check Voided)			-100.00
7/10/2003		7994	Payroll			980.59
7/10/2003		7995	Payroll			7817.30
7/10/2003		7996	Payroll			1332.84
7/10/2003		7997	Payroll			2293.04
7/18/2003			ADP Fees			146.09
7/22/2003			Wire Transfer	$	27,000.00
7/23/2003			ADP Taxes			5566.18
7/23/2003		37729	Bowne of Los Angeles, Inc			468.00
7/23/2003		37730	Cash			350.00
7/23/2003		37731	Hodes Parking			360.00
7/23/2003		37732	William Liebell			1175.00
7/23/2003		37733	Property Management Associates, I			2000.00
7/23/2003		37734	Recall			617.60
7/23/2003		37735	Daily Variety			279.00
7/23/2003		37736	SBC			575.42
7/23/2003		37717	SBC (Check Voided/ lost in mail)			-292.47
7/24/2003		7998	Payroll			980.57
7/24/2003		7999	Payroll			7859.48
7/24/2003		8000	Payroll			1332.84
7/24/2003		8001	Payroll			2293.03
7/25/2003			ADP Fees			10.00
7/25/2003		37737	Blue Shield of California			316.00
7/25/2003		37738	Health Net			2187.92
7/30/2003		37739	William Liebell			1062.50
TOTAL DISBURSEMENTS THIS PERIOD:					56,000.00	56,176.54		—		—
G. Ending Balance (E less F)				$	1,198,851.78	34,487.01	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 21 Page 3 of 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	3506258	$	1,011,608.38	Pound Sterling Time Deposit
Bank of Scotland — Basil	3506581	$	197,624.50	Pound Sterling Time Deposit (KL’s interest is 50%)
Allied Pinocchio	10747301		920.11	Pound Sterling
Freeway\Kushner-Locke	323-509487	$	255.95
Edge Entertainment	1891152710	$	444.92
European Films LTD	1890563818	$	7,051.58
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	$	17,724.61
	KL\7 Venture	1890-69-6360	$	9,334.62
	Denial Venture	1890-69-6501	$	42,179.28
	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.

/s/ Alice Neuhauser

Debtor in Possession

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EX-99.1

Kushner-Locke Company, Exhibit 99.1

EX-99.2

Kushner-Locke Company, Exhibit 99.2