-----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, DeL0DhQeE3lLgGcY4B3JXArZugtnC9WnvpWz6Atx0PQa48wA5VwU+YU3DquVIeGC 8CYsOnFnXFE613VRAOPiiA== 0000905148-06-007246.txt : 20061219 0000905148-06-007246.hdr.sgml : 20061219 20061219134444 ACCESSION NUMBER: 0000905148-06-007246 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20061213 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061219 DATE AS OF CHANGE: 20061219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEA CONTAINERS LTD /NY/ CENTRAL INDEX KEY: 0000088095 STANDARD INDUSTRIAL CLASSIFICATION: WATER TRANSPORTATION [4400] IRS NUMBER: 980038412 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07560 FILM NUMBER: 061285942 BUSINESS ADDRESS: STREET 1: 41 CEDAR AVE STREET 2: P O BOX HM 1179 CITY: HAMILTON HM EX BERMU STATE: D0 BUSINESS PHONE: 4412952244 MAIL ADDRESS: STREET 1: 41 CEDAR AVE STREET 2: PO BOX HM 1179 CITY: HAMILTON HM EX BERMU STATE: D0 FORMER COMPANY: FORMER CONFORMED NAME: SEA CONTAINERS ATLANTIC LTD DATE OF NAME CHANGE: 19810817 8-K 1 efc6-2920_form8k.txt UNITED STATES 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 (Date of earliest event reported) December 13, 2006 ----------------- Sea Containers Ltd. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Bermuda 1-7560 98-0038412 - ------------------------ -------------------- --------------------------- (State or other (Commission File (I.R.S. Employer jurisdiction of Number) Identification No.) incorporation) 22 Victoria Street, Hamilton HM 12, Bermuda --------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 441-295-2244 ------------ Not Applicable - ------------------------------------------------------------------------------ (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 1 ITEM 1.01 Entry into a Material Definitive Agreement On December 15, 2006, Sea Containers Ltd. (the "Company") announced in a press release that its rail subsidiary Great North Eastern Railway ("GNER") has entered into an amendment to its franchise agreement with the U.K. Government's Department for Transport ("DfT") for GNER to manage and operate services on the InterCity East Coast Mainline effective from 10th December 2006. This replaces the franchise agreement with a management agreement, which is expected to run for a period of up to 15 months to 31st March 2008. The Company understands that, during this period, the DfT will re-tender the franchise and invite Expressions of Interest. Under the terms of the management agreement, the key financial rewards and risks of the franchise agreement will pass to DfT, and GNER will earn an incentive fee based on revenue and cost performance. The Company will continue to guarantee a performance bond, at a reduced amount. The press release is attached hereto as Exhibit 99.1, and the management agreement is attached as Exhibit 99.2. ITEM 8.01 Other Events. The Company and its subsidiaries, Sea Containers Services Ltd. and Sea Containers Caribbean Inc., filed with the U.S. Bankruptcy Court on December 13, 2006, the first Monthly Operating Report for the period October 15-31, 2006, attached hereto as Exhibit 99.3. ITEM 9.01 Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release: GNER Enters into New Management Agreement with Department for Transport to operate Intercity East Coast Mainline 99.2 Franchise Management Agreement, dated December 14, 2006 between Great North Eastern Railway Limited and The Secretary of State for Transport 99.3 First Monthly Operating Report for the period October 15-31, 2006 2 SIGNATURES 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 thereunto duly authorized. SEA CONTAINERS LTD. By: /s/ Ian C. Durant ------------------------------------------------ Name: Ian C. Durant Title: Senior Vice President - Finance and Chief Financial Officer Date: December 19, 2006 3 EXHIBIT INDEX Exhibit Number Description - -------- ----------- 99.1 Press Release: GNER Enters into New Management Agreement with Department for Transport to operate Intercity East Coast Mainline 99.2 Franchise Management Agreement, dated December 14, 2006 between Great North Eastern Railway Limited and The Secretary of State for Transport 99.3 First Monthly Operating Report for the period October 15-31, 2006 4 EX-99.1 2 efc6-2920_ex991.txt Exhibit 99.1 Press Release GNER ENTERS INTO NEW MANAGEMENT AGREEMENT WITH DEPARTMENT FOR TRANSPORT TO OPERATE INTERCITY EAST COAST MAINLINE Hamilton, Bermuda, December 15, 2006. Sea Containers Ltd announced today that its rail subsidiary GNER has entered into an agreement with the U.K. Government's Department for Transport for a management agreement to operate services on the InterCity East Coast Mainline effective from 10th December 2006. This replaces the franchise agreement with a management agreement, which is expected to run for a period of up to 15 months to 31st March 2008. The franchise for InterCity East Coast Mainline will be re-tendered, and the Department for Transport has announced that it is inviting Expressions of Interest. Under the terms of the management agreement, the key financial rewards and risks of the franchise agreement will pass to the Department for Transport, and GNER will earn an incentive fee based on revenue and cost performance. Sea Containers will continue to guarantee a performance bond, at a reduced amount. Train services will continue to run as normal and tickets will continue to be sold. GNER will continue to manage the business according to the service standards to which it has committed under the May 2005 franchise agreement and will continue to be committed to achieve the cost savings, as envisaged in the original bid. It will also continue to deliver key passenger benefits, including station improvements, re-engined and refurbished HST trains and a half-hourly service between London and Leeds. Last month GNER was voted Britain's Best Rail Operator in the inaugural British Travel Awards and passenger satisfaction ratings are at an all-time high, at 90%. Bob Mackenzie, Chief Executive Officer of Sea Containers Ltd and Chairman of GNER, commented: "GNER has a new management team in place which is now delivering a revenue growth in line with the original bid. While we are not in breach of the current franchise agreement, GNER will not be able to meet the significant increase in franchise premium obligations due from May 2007. We would have preferred a renegotiation of the current contract, but that was not available. The management agreement is therefore a sensible solution for all parties. It enables GNER, which is recognised as a first class rail operator, to continue to deliver the high level of customer service for which it is known, and allow passengers to continue to benefit from this commitment. It also limits the exposure for Sea Containers, which is important in our financial restructuring process." "Our original bid was bullish, but we were knocked sideways by the July 2005 bombings, the hike in electricity prices and regulatory approval for Grand Central, which will compete for our passengers calling at our stations on the same line, but will not have the same charges imposed upon them." ENDS For further information: Lisa Barnard Director of Communications, Sea Containers group of companies Tel: +44 207 805 5550 Email: lisa.barnard@seacontainers.com Investor Relations enquiries: William W. Galvin III, The Galvin Partnership Tel: +1 (203) 618 9800 Email: wwg@galvinpartners.com EX-99.2 3 efc6-2920_ex992.txt Exhibit 99.2 Franchise Management Agreement C L I F F O R D CLIFFORD CHANCE LLP C H A N C E GREAT NORTH EASTERN RAILWAY LIMITED AND THE SECRETARY OF STATE FOR TRANSPORT ------------------------------------------------------- FRANCHISE MANAGEMENT AGREEMENT -------------------------------------------------------
CONTENTS Clause Page 1. Interpretation..................................................................................2 2. Barclays Waiver Deed............................................................................4 3. Continuation And Amendment Of Franchise Agreement...............................................4 4. Amendments To Franchise Agreement...............................................................5 5. Restrictions....................................................................................5 6. Management Period Budget........................................................................7 7. Additional Event Of Default.....................................................................8 8. Costs Contribution; Settlement..................................................................8 9. Performance Bond................................................................................8 10. Term And Termination............................................................................9 11. Provisions Applying On And After Termination....................................................9 12. Confidentiality................................................................................10 13. Announcements..................................................................................10 14. Entire Agreement...............................................................................10 15. Governing Law..................................................................................11 16. Jurisdiction...................................................................................11 Schedule 1 AMENDMENTS TO THE FRANCHISE AGREEMENT......................................................13 Schedule 2 AMENDMENT OF PERFORMANCE BOND AMOUNT.......................................................17 Schedule 3 AGREEMENT OF MANAGEMENT PERIOD BUDGET......................................................18 Schedule 4 AMENDMENTS TO FRANCHISE PAYMENTS...........................................................20 Schedule 5 INCENTIVE PAYMENT..........................................................................22 Part A Revenue Incentives...............................................................22 Part B Cost Incentives..................................................................22 Schedule 6 MANAGER RESTRICTIONS.......................................................................23 Schedule 7 PAYMENTS ON TERMINATION OF THE MANAGEMENT AGREEMENT........................................25
-1- THIS AGREEMENT is made on 14 December, 2006 BETWEEN: (1) GREAT NORTH EASTERN RAILWAY LIMITED, whose registered office is at Sea Containers House, 20 Upper Ground, London SE1 9PF (the "Manager"); and (2) THE SECRETARY OF STATE FOR TRANSPORT, whose principal place of business is at 76 Marsham Street, London SW1P 4DR (the "Secretary of State"). INTRODUCTION: (A) The Manager has been providing certain services for the carriage of passengers by railway and operating certain stations and light maintenance depots pursuant to a franchise agreement dated 18 March 2005 between the Authority and the Manager, as such franchise agreement has been amended from time to time (the "Franchise Agreement"). (B) Pursuant to a transfer scheme made under section 1(2) and Schedule 2 of the Railways Act 2005 dated 22 July 2005 the rights and obligations of the Authority under the Franchise Agreement have transferred to the Secretary of State. (C) The Secretary of State and the Manager have agreed to terminate the Franchise Agreement early but have agreed that the Manager will continue to provide the Franchise Services under the Franchise Agreement as amended by this Agreement until such termination takes effect. THE PARTIES AGREE as follows: 1. INTERPRETATION 1.1 In this Agreement: "Actual Costs" means the cost (excluding corporation tax) actually incurred in the operation of the Franchise Services during the Management Period as shown in the Management Accounts; "Auditor's Confirmation" means a certificate from the Manager's auditor in the agreed form; "Authority" means the Strategic Rail Authority, a body corporate established under section 201 of the Transport Act 2000; "Barclays Waiver Deed" means a deed entered into between the Manager, the Secretary of State and Barclays Bank plc on the date hereof in the agreed form; "Budgeted Costs" means the costs (excluding corporation tax) anticipated to be incurred in the operation of the Franchise Services during the Management Period as set out in the Management Period Budget; -2- "Budgeted Revenue" means the Revenue anticipated to be generated from the operation of the Franchise Services during the Management Period as set out in the Management Period Budget; "Cash at Bank balance" means the cash at bank balance shown in the relevant Cash Flow Statement excluding cash in respect of season ticket obligations; "Cash Flow Statement" means the cash flow statement in the form included in the Management Period Budget and prepared in the manner consistent with Generally Accepted Accounting Practices; "Cash Payment" means each cash payment to be paid to the Secretary of State pursuant to Schedule 4; "Cost Saving Incentive Payment" means the cost saving incentive payment calculated and made in accordance with Part B of Schedule 5; "Cost Saving Proposal" has the meaning set out in clause 5.4.2; "Costs Contribution Amount" means the amount of [omitted, see clause 12.2]; "Enhancement Facility" means the letter agreement dated on 12 December 2005 between the Secretary of State, the Manager and Barclays Bank Plc and the (GBP)32,500,000 Facility Agreement dated on 12 December 2005 between the Manager and Barclays Bank Plc; "Franchise Agreement" has the meaning given to it in Recital A; "Management Period Budget" means the budget for the operation of the Franchise Services during the Management Period in the agreed form and, for any extension to the Management Period beyond the Initial Expiry Date to be prepared and agreed or determined in accordance with clause 6; "Management Period" means the period from the Management Period Commencement Date to the Expiry Date; "Management Period Commencement Date" means 10 December 2006; "Net Fixed Asset Value" means the value of the Transferred Fixed Assets as determined under the Supplemental Agreement; "Revenue Incentive Payment" means the revenue incentive payment calculated and made in accordance with part A of Schedule 5; "Transferred Fixed Assets" means the fixed assets transferred by the Manager to the Successor Operator which have not been funded by the Secretary of State during the Management Period or under the Enhancement Facility; "Uncontrollable Costs" means costs outside the control of the Manager including without limitation costs in respect of rolling stock leases, and leases of infrastructure entered into with Network Rail. -3- 1.2 In this Agreement, a reference to: 1.2.1 words and expressions defined in the Franchise Agreement shall have the same meanings in this Agreement; 1.2.2 any enactment includes any subordinate legislation made from time to time under it and is to be construed as a reference to that enactment or subordinate legislation as for the time being amended or modified or to any enactment or subordinate legislation for the time being replacing it or amending it; 1.2.3 a document is a reference to that document as modified or replaced from time to time; 1.2.4 a person includes a reference to a corporation, body corporate, association or partnership; 1.2.5 a person includes a reference to that person's legal personal representatives, successors and permitted assigns; 1.2.6 the singular includes the plural and vice versa (unless the context otherwise requires); 1.2.7 a clause or schedule, unless the context otherwise requires, is a reference to a clause of or schedule to this Agreement; and 1.2.8 a reference to a document in the agreed form is to a document identified as such and initialled for the purposes of identification by or on behalf of the parties hereto. 1.3 References to the Franchise Agreement shall hereafter be read and construed as references to the Franchise Agreement as amended and construed by and in accordance with this Agreement. 1.4 Paragraphs and clauses of the Franchise Agreement amended or restated in this Agreement may refer to "the Authority" for the sake of consistency with the drafting in that document. This shall not derogate from the fact that the rights and obligations of the Authority under the Franchise Agreement have transferred to the Secretary of State and all such references shall be deemed to be references to the Secretary of State. 1.5 The headings in this Agreement do not affect its interpretation. 2. BARCLAYS WAIVER DEED 2.1 The Manager shall provide to the Secretary of State simultaneously with signature of this Agreement a duly executed original version of the Barclays Waiver Deed. 3. CONTINUATION AND AMENDMENT OF FRANCHISE AGREEMENT 3.1 The Manager agrees to continue to provide Franchise Services and otherwise be bound by and comply with his obligations under the terms of the Franchise Agreement, and the Secretary of State agrees to be bound by and comply with its obligations under the -4- Franchise Agreement, save in either case to the extent that the rights and obligations of the parties are modified by this Agreement. 3.2 Save as otherwise set out in this Agreement, the amendments made to the Franchise Agreement pursuant to this Agreement shall be effective from the Management Period Commencement Date provided that: 3.2.1 no such amendments shall take effect so as to create any liability for a party for failing to perform an obligation or discharge a liability under the Franchise Agreement prior to the Management Period Commencement Date to the extent that the relevant party did not have that obligation or liability under the Franchise Agreement prior to the Management Period Commencement Date; and 3.2.2 the accrued rights and obligations of the parties as at the date of the Management Period Commencement Date shall not be affected by this Agreement. 3.3 For the avoidance of doubt, the only cash available to be earned by the Manager in consideration for the operation of this Agreement shall be the Revenue Incentive and Cost Saving Incentive earned during the Management Period and, following the expiry of the Franchise Term, the amount of the Net Fixed Asset Value to be paid to the Manager pursuant to Schedule 7. 3.4 The closing balance sheet at 09 December 2006 and the profit and loss account for Reporting Period 07/10 will be reviewed as part of the year end audit pursuant to paragraph 3.9 of Schedule 13.2 of the Franchise Agreement and the Manager's auditors will provide an Auditor's Confirmation in relation to these. 4. AMENDMENTS TO FRANCHISE AGREEMENT 4.1 The amendments to the Franchise Agreement set out in Schedule 1 shall have effect. 5. RESTRICTIONS 5.1 The Manager acknowledges that, by virtue of a letter dated 29 September 2006 on behalf of the Secretary of State, Schedule 15.2 (Last 12 or 13 months of Franchise Period) of the Franchise Agreement has been deemed to apply as if the franchise was in the last 12 or 13 months of the Franchise Period. 5.2 With effect from the Management Period Commencement Date, the Franchisee shall be deemed to be in a Lock-Up Period for the purposes of paragraph 3.2 of Schedule 12 (Financial Obligations and Covenants) of the Franchise Agreement, notwithstanding the deletion of paragraph 2 of Schedule 12. 5.3 The Manager shall not enter into any new contract which has a total value in excess of [omitted, see clause 12.2] or with an expiry date after 30 September 2007 without the prior written consent of the Secretary of State. Two or more contracts relating to the same or related subject matter shall be treated as a single contract for the purposes of determining whether this threshold has been exceeded. The Manager agrees to inform the Secretary of State sufficiently in advance of the intended date of signature of any -5- such contracts to enable the Secretary of State, through his officials, to discuss the terms of such contracts with the Manager and, if necessary, with the counterparty. The consent of the Secretary of State is not required to enter into any contract which is safety related. 5.4 Changes to Operations 5.4.1 The Manager will continue to provide the Franchise Services during the Management Period in accordance with the Franchise Agreement, as amended by this Agreement, but will not implement any material changes to operations which are (a) outside the ordinary course of business; or (b) contentious or controversial, without the Secretary of State's prior written consent, such consent not to be unreasonably withheld or delayed. Consent is not required for material changes to operations which have been commenced prior to the Management Period Commencement Date or safety related initiatives which are required to be implemented within a timescale which does not permit of prior approval. 5.4.2 The Manager will continue to make day to day improvements in the operational cost base of running the business without the prior consent of the Secretary of State provided no such individual operational improvements will or are likely to result in Actual Costs (net of any expenditure incurred in making such operational improvements) being reduced below Budgeted Costs during the Management Period by an amount of [omitted, see clause 12.2] or more. For these purposes "expenditure incurred" includes any depreciation or lease costs or other directly related costs incurred in respect thereof referable to the Management Period. 5.4.3 The Manager shall notify the Secretary of State in writing in advance of implementing any improvement in the operational cost base which does not fall within clause 5.4.2 ("Cost Saving Proposal") save to the extent that it is identified in the Management Period Budget, together with sufficient information to enable the Secretary of State to make the determination contemplated in clause 5.4.4. 5.4.4 Within 7 working days of receipt of such written notification, the Secretary of State shall inform the Manager in writing whether or not the Cost Saving Proposal falls within paragraphs (a) or (b) of clause 5.4.1; and (a) if it does not, the Manager may proceed to implement the Cost Saving Proposal; or (b) if it does, and the Secretary of State further informs the Manager that he has not received sufficient information to make a decision, the Manager shall provide the Secretary of State with such further information as the Secretary of State may reasonably request; or (c) if it does, and the Secretary of State approves the Cost Saving Proposal, the Manager may proceed to implement the Cost Saving Proposal subject to such conditions as the Secretary of State may reasonably require. -6- 5.4.5 If the Secretary of State requests further information pursuant to clause 5.4.4(b), the Secretary of State shall make the determination contemplated by clause 5.4.4 within 7 working days of receiving the requested information, and if it does not, the Manager may proceed to implement the Cost Saving Proposal. 5.4.6 If the Secretary of State considers that a Cost Saving Proposal falls within paragraphs (a) or (b) of clause 5.4.1 and notifies the Manager that he is withholding his approval, the Secretary of State will at the same time provide reasonable details of his reasons for such decision. 5.5 The Manager shall not terminate, amend or waive any of its rights under its current agreements with Sea Containers Railway Services Limited, whether oral or in writing, unless it replaces such agreements with the provision of goods and/or services on terms at least as favourable to the Manager as those of such agreements for a period to expire no earlier than 31 March 2008. If the Management Period is extended beyond the Initial Expiry Date, the Manager will not be in breach of its obligations under the Franchise Agreement (as amended by this Agreement) if it ceases to secure the provision of such goods and/or services after the Initial Expiry Date. 5.6 The Secretary of State agrees to consider in good faith upon receipt of all relevant information whether the telesales operation of Sea Containers Railway Services Limited should be transferred to the Manager during the Management Period. The parties acknowledge that if the Secretary of State decides that there should be a transfer, the terms of such transfer and consequential amendments to the Management Period Budget will need to be agreed. The Secretary of State will make his determination as soon as reasonably practicable. 5.7 For the purposes of this clause 5 the Secretary of State shall be deemed to have consented to any matter expressly made known to him in the assumptions comprised in any Management Period Budget prepared in accordance with clause 6 below; or as set out in Schedule 1. 5.8 The provisions of Schedule 5 and 6 shall have effect. 5.9 The Manager shall not create or permit to subsist any new Security Interest (over and above any existing on the Management Period Commencement Date) over or otherwise encumber any of its bank accounts, cash reserves or other assets in favour of Barclays Bank as security for Barclays Bank Plc's obligations under the Performance Bond, except pursuant to the Barclays Waiver Deed. 6. MANAGEMENT PERIOD BUDGET 6.1 The Franchisee shall operate the Franchise Services during the Management Period in accordance with the Management Period Budget. 6.2 For the purposes of agreeing or determining the Management Period Budget and Threshold Revenue for any extension of the Management Period beyond the Initial Expiry Date the amendments to the Franchise Agreement set out in Schedule 3 shall have effect. -7- 7. ADDITIONAL EVENT OF DEFAULT 7.1 The following new Event of Default shall be added to paragraph 2 of Schedule 10.3 (Events of Default and Termination Event) of the Franchise Agreement as a new paragraph 2.16: "2.16(a) If at any time during the Management Period the operating result (calculated by deducting the Actual Costs from the Actual Revenue) is less than the budgeted result (calculated by deducting the Budgeted Costs from the Budgeted Revenue) by an amount equal to or more than [omitted, see clause 12.2] for the period from the Management Period Commencement Date to the date of calculation; and pro rata for any extension of the Management Period beyond the Initial Expiry Date. (b) In making the calculation under paragraph 2.16(a) the Authority shall disregard increases and decreases in Uncontrollable Costs, increases and decreases in costs due to a Force Majeure Event or a Change, asset write downs and impairment charges (net of depreciation in the Management Period Budget relating to assets held at the Management Period Commencement Date consequential upon the arrangements under this Agreement), and increases and reductions in revenues due to a Force Majeure Event or a Change." 7.2 The amendments to the Franchise Agreement contained in this clause 7 shall become effective on the Management Period Commencement Date. 8. COSTS CONTRIBUTION; SETTLEMENT 8.1 In consideration of the Secretary of State entering into this Agreement: 8.1.1 the Manager shall pay the Costs Contribution Amount to the Secretary of State. The Secretary of State hereby acknowledges receipt of the Costs Contribution Amount; and 8.1.2 the Manager and the Secretary of State hereby waive and discharge the other from all liability, costs, claims and expenses arising out of or in connection with the Franchise Agreement claimed or made prior to the date of this Agreement. 9. PERFORMANCE BOND 9.1 The obligation of the Manager under paragraph 4.1 of Schedule 12 of the Franchise Agreement (Financial Obligations and Covenants) to procure a valid and effective Performance Bond shall continue to apply to the Franchise Agreement as amended by this Agreement. 9.2 The amendments to the amount of the Performance Bond set out in Schedule 2 of this Agreement shall have effect. -8- 10. TERM AND TERMINATION 10.1 Subject to clause 10.3, the Franchise Agreement shall terminate on the Expiry Date (as redefined in this Agreement). 10.2 The Secretary of State may extend the Franchise Term beyond the Initial Expiry Date (as redefined in this Agreement) in accordance with paragraph 1.5 of Schedule 18 of the Franchise Agreement (Franchise Continuation Criteria). 10.3 The Secretary of State may terminate the Franchise Agreement by two months written notice to the Manager to be given no earlier than 1 August 2007, so as to allow a Successor Operator to commence the provision of the Franchise Services on or about the date of expiry of such notice. Termination under this clause 10.3 shall be without further liability to the Secretary of State arising purely by virtue of such termination. 11. PROVISIONS APPLYING ON AND AFTER TERMINATION 11.1 The Secretary of State will procure that, insofar as they relate to that part of the Manager's undertaking which consists of the provision of the Franchise Services and is permitted under the Franchise Agreement, all the Manager's assets and liabilities (excluding cash; corporation tax liabilities; contingent liabilities; liabilities for breach of contract or tort; liabilities in respect of loans other than under the Enhancement Facility and liabilities in respect of any indemnity given by the Manager to the Successor Operator in the Supplemental Agreement in respect of employees), including its rights and obligations under any contracts (except as excluded above), will be designated as a Primary Franchise Asset and transferred to the Successor Operator. For the avoidance of doubt, any finance leases or similar arrangements in relation to the Manager's assets will be transferred to the Successor Operator. 11.2 In respect of pension contributions, the Manager shall comply with its obligations under the Railways Pension Scheme to make payment of contributions to any relevant Franchise Section up to the date of the end of the Management Period, the amount of such contributions being as determined by the Trustee and: 11.2.1 provided the Manager has complied with such obligations, the Manager shall have no further liabilities in respect of the Railways Pension Scheme following the end of the Management Period; 11.2.2 to the extent that the Manager has failed to make any such contribution referred to in clause 11.2, the liability to make such payment will remain with the Manager after the end of the Management Period and shall not be designated as a Primary Franchise Asset. 11.3 The Secretary of State will procure that Property Leases (including any leases in respect of office accommodation in York) and Rolling Stock Leases will be included in the Transfer Scheme to the Successor Operator or otherwise assigned or transferred to the Successor Operator at the end of the Management Agreement and that accordingly the dilapidation obligations in the Property Leases (including any leases in respect of office accommodation in York) and the redelivery requirements in the Rolling Stock Leases will not be applied at the point of transfer. -9- 11.4 The Manager shall continue to operate and maintain the rolling stock in line with the arrangements detailed in its Safety Management System. In addition, the Manager shall ensure that the rolling stock is maintained in a condition consistent with their positions within both the heavy and running maintenance programmes subject to normal wear and tear and taking account of any accepted faults. The Manager shall comply with its maintenance obligations in respect of leases of stations, depots and other property. 12. CONFIDENTIALITY 12.1 The provisions of Schedule 17 (Confidentiality) of the Franchise Agreement shall apply to this Agreement and to the Franchise Agreement as amended by this Agreement, as they do to the Franchise Agreement. 12.2 The parties acknowledge that the following provisions of this Agreement contain commercially sensitive confidential information the public disclosure of which would be prejudicial to the parties: 12.2.1 the amount of the Costs Contribution Amount; 12.2.2 paragraphs 1 and 2 of Schedule 2; 12.2.3 parts A and B of Schedule 5; 12.2.4 the monetary amounts in clauses 5.3, 5.4.2 and 7.1; paragraphs 2 and 3 of Schedule 4; paragraphs 1.5 and 1.6 of Schedule 6; and 12.2.5 all of Schedule 7 apart from paragraphs 1, 1.1, 4, 5, 6, 10, 11 and 11.2. 13. ANNOUNCEMENTS 13.1 No announcement or information concerning the amendments made to the Franchise Agreement by this Agreement, this Agreement or any matter ancillary to its implementation will be made or released or authorised to be made or released publicly by the Manager without the prior written consent of the Secretary of State other than: 13.1.1 to any Affiliate, upon obtaining from such Affiliate an undertaking equivalent to that in this clause 13.1; or 13.1.2 to any outside consultants or professional advisers acting in relation to the negotiation or implementation of this Agreement upon obtaining an undertaking from such consultants or professional advisers an undertaking equivalent to that in this clause 13.1; or 13.1.3 to the extent required by law or pursuant to an order of any court of competent jurisdiction or under the Dispute Resolution Rules or the rules of a recognised stock exchange or a formal or informal request of any taxation authority; or 13.1.4 to any employee or officer of the Manager to the extent required to enable such party to enforce or perform its rights and obligations under the Franchise Agreement and/or this Agreement. 14. ENTIRE AGREEMENT -10- 14.1 This Agreement, the Franchise Agreement and any documents referred to herein constitute the entire agreement, and supersede any previous agreements between the parties relating to the subject matter of this Agreement. 14.2 Each party acknowledges that it has not relied on or been induced to enter this Agreement by a representation other than those expressly set out in this Agreement. 14.3 A party is not liable to the other party for a representation that is not set out in this Agreement. 14.4 Clause 14 does not affect a party's liability in respect of a fraudulent misrepresentation. 15. GOVERNING LAW This Agreement and all matters arising from or connected with it are governed by English law. 16. JURISDICTION 16.1 Either party may refer any dispute arising out of this Agreement for resolution in accordance with the Dispute Resolution Rules, and the provisions of paragraph 4 of Schedule 19 (Other Provisions) of the Franchise Agreement shall apply to disputes so referred under this Agreement, as they do to disputes so referred under the Franchise Agreement. -11- THE CORPORATE SEAL } OF THE SECRETARY OF } STATE FOR TRANSPORT } [SEAL] IS HEREUNTO AFFIXED: } [Seal ref. no. DfT/3008] /s/ Rowan Smith Authenticated by authority of the Secretary of State for Transport SIGNED FOR AND ON BEHALF OF GREAT NORTH } EASTERN RAILWAY LIMITED } | DIRECTOR: } /s/ Robert D. MacKenzie } } } DIRECTOR/SECRETARY: /s/ Jonathan Metcalfe -12- SCHEDULE 1 AMENDMENTS TO THE FRANCHISE AGREEMENT 1. Interpretation 1.1 Unless otherwise specified, references to Schedules in this Schedule 1 are references to Schedules of the Franchise Agreement. 2. Definitions Agreement: 2.1 Definitions in the Definitions Agreement which have no further application shall be disregarded in the interpretation of the Franchise Agreement. 2.2 The following definitions shall be deleted from the Definitions Agreement and restated as follows: 2.2.1 "Expiry Date" means: (a) the Initial Expiry Date; or (b) the date to which the Franchise Agreement is continued in accordance with paragraph 1.5 of Schedule 18 (Franchise Continuation Criteria) 2.2.2 "Initial Expiry Date" means 31 March 2008 3. Schedule 1.6 (Committed Obligations): 3.1 The obligations on the Franchisee in Schedule 1.6 of the Franchise Agreement to deliver the following Committed Obligations will cease to apply with effect from the Management Period Commencement Date (references are to paragraphs of Part 2 of schedule 1.6 to the Franchise Agreement): 3.1.1 Spend (GBP)25,000,000 on the Station Improvement Programme - paragraph 10.1 3.1.2 900 additional car parking spaces - paragraphs 10.1(a) 3.1.3 Darlington car park expansion - paragraph 11.1 3.1.4 York car park - paragraph 11.1 3.1.5 Peterborough station - paragraph 10 3.1.6 Replacement of internal signage but not customer information systems - paragraph 10.1(c) 3.1.7 Station seating - paragraphs 10.1(f) and (g) 3.1.8 Provision of additional covered cycle storage spaces - paragraphs 10.1(b) and 12.1 3.1.9 Enterprise Asset Management System - paragraph 7 3.1.10 Newcastle station - paragraph 10 -13- 3.1.11 Automatic ticket barriers at Peterborough, Durham and Newcastle - paragraph 14 3.1.12 Initiatives agreed by the East Coast Joint Board - paragraph 15.3 3.1.13 Contribution towards bus schemes - paragraph 21.3(b) 3.1.14 Branded Coach links - paragraph 25 3.1.15 Train crew sub-depots - paragraph 31.8 3.1.16 Spending (GBP)3,000,000 on security measures - paragraph 32.6 3.1.17 Replacement of Class 08 shunters - paragraph 32.9 3.1.18 (GBP)10 million working capital facility - paragraph 39.1 3.1.19 (GBP)30 million facility - paragraphs 39.3 to 39.5 3.2 In respect of York station, the Franchisee will proceed with the scheme to convert the goods subway and associated lifts and access to passenger use, but all other Committed Obligations relating to York station will cease to apply. 3.3 The Franchisee will work with the Authority to introduce the Leeds half-hourly service in accordance with paragraph 38.2 of Part 2 of Schedule 1.6 of the Franchise Agreement with effect from the Passenger Change Date (as defined in the Network Code) in May 2007. Paragraphs 31.3, 38.2A and 39.6 of Part 2 of Schedule 1.6 of the Franchise Agreement will not apply. The Franchisee will ensure that so far as possible rolling stock costs incurred in relation to the introduction of the Leeds half-hourly service shall be charged through lease rentals. Any reduction in the costs incurred through such a mechanism, or through a reduction in the number of staff budgeted at the Management Period Commencement Date to be employed in the operation of the service, shall be disregarded in calculating the Cost Saving Incentive Payment. 3.4 Notwithstanding paragraphs 3.1.3, 3.1.4 and 3.1.10 above, the Franchisee will provide a business case to the Authority to proceed with the Committed Obligations in respect of the Darlington car park expansion, York car park and Newcastle station. If the Authority decides that the Committed Obligations should proceed: 3.4.1 the Authority will reinstate the relevant Committed Obligation and instruct the Franchisee to proceed to implement it; and 3.4.2 the Authority and the Franchisee will work together to agree appropriate amendments to the Management Period Budget and the Threshold Revenue in Schedule 5 of this Agreement, and in default of agreement the matter shall be referred by either party for resolution pursuant to the Dispute Resolution Rules. 3.5 Notwithstanding paragraph 3.1.9 above, the Authority acknowledges that the Franchisee is developing proposals to implement the Enterprise Asset Management System during the Management Period, as well as two other overlay projects, being the relocation of the York headquarters and the implementation of the core business system. The Franchisee -14- and the Authority will work together in good faith in relation to each of these overlay projects. If such projects are agreed to be implemented, costs incurred in implementing such projects shall be disregarded for the purposes of determining whether there has been an Event of Default under paragraph 2.16 of Schedule 10.3; and for the purposes of the calculation of a Cost Saving Incentive Payment. 3.6 The Manager shall procure that Robert MacKenzie shall continue as a director of the Manager for the duration of the Management Period and that he shall devote an appropriate proportion of his time to the operation of the Manager (subject to holidays, death, illness or resignation from employment within the Sea Containers Group). The Manager shall be entitled to pay to an Affiliate or Robert MacKenzie such proportion of his salary and emoluments as is equal to the proportion of Robert MacKenzie's working hours which are spent in relation to the management of the Manager in an amount disclosed by the Manager to the Authority prior to the Management Period Commencement Date. 4. Schedule 7.2 (Key Performance Indicators) 4.1 The SQ audit regime in Schedule 7.2 is no longer being operated in the manner specified in Schedule 7.2, and the Authority will not enforce its terms against the Manager until the replacement to Schedule 7.2 has been implemented. 5. Schedule 8 (Franchise Payments) 5.1 Delete Schedules 8.1 to 8.4 and replace with Schedule 4. 6. Schedule 9 (Changes) 6.1 Schedules 9.1 to 9.4 shall be deleted in their entirety. 7. Schedule 12 (Financial Obligations and Covenants) 7.1 Paragraphs 2 and 3.3 of Schedule 12 (Financial Ratios) shall be deleted. 8. Schedule 15.4, Appendix 2 (Form of Supplemental Agreement) 8.1 Add a new clause 2A: "Payments of the price in so far as referable to the Transferred Fixed Assets (as defined in the Franchise Agreement, as amended), shall be made by the Transferee to the Secretary of State". 8.2 In the Schedule, add the following new paragraph 7: "7. The value of any fixed assets or fixed asset enhancements fully or partially funded by the Secretary of State during the Management Period (whether directly or indirectly through funding debt repayments) shall be reduced by the amount of such funding by the Secretary of State during the Management Period." 9. Schedule 18 (Franchise Continuation Criteria) 9.1 Paragraphs 1.1 to 1.4 inclusive shall be deleted. -15- 9.2 Paragraph 1.5 shall be deleted and restated as follows: "1.5 If the Authority gives notice to the Franchisee not less than 3 months before the Initial Expiry Date this Agreement shall continue after such date on the terms set out in this Agreement for not less than 1 and not more than 7 Reporting Periods, as the Authority may stipulate". 10. Schedule 19 (Other Provisions) 10.1 Paragraph 2 of Schedule 19 (Capital Expenditure) shall be deleted. -16- SCHEDULE 2 AMENDMENT OF PERFORMANCE BOND AMOUNT 1. [omitted, see clause 12.2] 2. [omitted, see clause 12.2] -17- SCHEDULE 3 AGREEMENT OF MANAGEMENT PERIOD BUDGET 1. Paragraph 2.4 of Schedule 13.2 (Information) of the Franchise Agreement shall be deleted and restated as follows: 2.4 (a) If the Authority exercises its rights to extend the Management Period beyond the Initial Expiry Date under paragraph 1.5 of Schedule 18, the Franchisee and the Authority shall seek to agree the Management Period Budget and Threshold Revenue in respect of the period beyond the Initial Expiry Date by no later than the business day next following the Initial Expiry Date ("Extension Commencement Date"). (b) In the event that the Management Period Budget and the Threshold Revenue in respect of the period beyond the Initial Expiry Date has not been agreed by the Extension Commencement Date then: (i) the Threshold Revenue and amounts for the revenue in the Management Period Budget for each Reporting Period after the Initial Expiry Date shall be the same as applied in respect of the corresponding Reporting Period in the year before the Initial Expiry Date, adjusted for RPI, GDP and the demand elasticity (as applied in the Management Period Budget), and to reflect any change in Passenger Services; (ii) the costs in Management Period Budget for each Reporting Period after the Initial Expiry Date shall be the same as applied in respect of the corresponding Reporting Period in the year before the Initial Expiry Date, and each category of costs shall be indexed, as appropriate, in accordance with the relevant index shown in the Management Period Budget and to reflect any change in Passenger Services. (c) The following process will be applied at Franchise Performance Meetings in addition to the matters prescribed at paragraph 4 of Schedule 11 to the Franchise Agreement: (i) the nominated representatives of the Authority and the Franchisee will review the actual financial results, the latest available outturn financial results in relation to the agreed or determined Management Period Budget; and (ii) at the Franchise Performance Meeting the parties shall discuss as a minimum: (aa) any material differences between the agreed or determined Management Period Budget and the latest available outturn financial results; -18- (bb) any reasons and explanations as to why such differences have occurred; (cc) any issues relating to the efficient operation of the business and any evidence produced by either party relating to those issues; and (dd) cash flow projections. -19- SCHEDULE 4 AMENDMENTS TO FRANCHISE PAYMENTS Cash at Bank Balance and Cash Payments, Miscellaneous Payment Provisions 1. Cash Payments 1.1 The Secretary of State shall receive a Cash Payment in place of a Franchise Payment, such Cash Payment to be made from surplus cash available from the Manager's trading, as calculated in accordance with this Schedule 4. 1.2 The Cash Payment shall be calculated with reference to the Cash Flow Statement included in the Management Accounts prepared following the end of each Reporting Period (the "Period End Management Accounts") submitted by the Manager to the Secretary of State in the normal course of business. The cash surplus shown in the Cash Flow Statements shall provide the basis for the calculation of the Cash Payment to be paid to the Secretary of State by the Manager in respect of each Reporting Period. 2. If the Period End Management Accounts for a Reporting Period show that the Cash at Bank balance at the close of the final day of the relevant Reporting Period is greater than [omitted, see clause 12.2] then, subject to paragraph 3, the excess cash (if any) above [omitted, see clause 12.2] will be paid by the Manager to the Secretary of State on the final business day of the following Reporting Period. 3. Should the Cash at Bank balance be forecast to fall below [omitted, see clause 12.2] at any time during the next two Reporting Periods (to be discussed, without limitation, at each Franchise Performance Meeting), then the Secretary of State will increase the Cash at Bank balance, to be paid by the Secretary of State to the Manager or made by adjustment to the amount to be paid by the Manager to the Secretary of State under paragraph 2, to ensure that Cash at Bank balance forecast shall remain at least [omitted, see clause 12.2] throughout the relevant Reporting Periods. 4. Subject to the provisions of Schedule 7 each Cash Payment shall be made: (a) by automatic electronic funds transfer in pounds sterling to such bank account in the United Kingdom as the payee of such payment may have previously specified to the payer in writing; and (b) so that cleared funds are received in that account on or before the due date for payment. 5. If either party disputes the amount of a Cash Payment, the dispute shall be resolved in accordance with the Dispute Resolution Rules but shall not affect the obligation of either party to pay a Cash Payment notified in accordance with paragraph 2 above. 6. If either party fails to pay any amount to the other party on its due date, it shall in addition pay interest on such amount at the Interest Rate, calculated on a daily basis, from the due date for payment to the date on which payment is made. 7. If the amount of any Cash Payment is agreed or determined to be incorrect and: -20- (a) either party has made a payment to the other party which is greater than it would have made if the amount of the Cash Payment had been correct, then the recipient shall repay the excess within three business days of the agreement or determination; or (b) either party has made a payment to the other party which is less than it would have made if the amount of the Cash Payment had been correct, then the payer shall pay the amount of any shortfall to the payee within three business days of the agreement or determination, together, in each case, with interest on the amount payable at the Interest Rate, calculated on a daily basis from the date on which the Cash Payment was paid until the date on which such excess amount or shortfall is paid. 8. Miscellaneous Payment Provisions 8.1 The Authority, in its discretion may at any time decide to reimburse or ameliorate net losses of the Franchisee arising from industrial action (however caused and of whatever nature) in circumstances where the Franchisee has demonstrated to the satisfaction of the Authority that it has taken all reasonable steps to avoid the industrial action and that, industrial action having nevertheless occurred, the Franchisee has taken all reasonable steps to mitigate its effects. 8.2 All sums payable by either party under the Franchise Agreement shall be paid free and clear of any deductions, withholdings, set-offs or counter-claims, save only as may be required by Law or as expressly permitted or required under the Franchise Agreement. -21- SCHEDULE 5 INCENTIVE PAYMENT Part A Revenue incentives [omitted, see clause 12.2] Part B Cost Incentives [omitted, see clause 12.2] -22- SCHEDULE 6 MANAGER RESTRICTIONS 1. In addition to the restrictions contained in paragraph 1 of Schedule 12 (Financial Obligations and Covenants) of the Franchise Agreement, the Manager agrees that during the Management Period it will not without the written consent of the Secretary of State (not to be unreasonably withheld or delayed):- 1.1 alter its Memorandum and Articles of Association or equivalent constitutional document; 1.2 pay any sum to any of its Affiliates in respect of management fees in addition or as a variation to the sums so paid immediately prior to the Management Period Commencement Date, always provided that to the extent that the Management Period is extended beyond the Initial Expiry Date and any Revenue Incentive or Cost Saving Incentive is payable to the Manager pursuant to Schedule 5, the Manager shall be entitled to pay that amount to an Affiliate as a management fee or other similar payment at any time after the Initial Expiry Date; 1.3 factor or securitise or otherwise sell or assign any debts due to it other than pursuant to the Ticketing and Settlement Agreement; 1.4 make any change in its accounting policies (both published accounting policies and methodologies) applied in practice; 1.5 dispose of any of its assets other than: (a) disposals of any assets not exceeding [omitted, see clause 12.2] in book value in aggregate (such aggregate applying to the Manager and its subsidiaries as a whole); (b) disposal on normal commercial terms of damaged, obsolete or redundant assets or assets which need replacing in the normal course of trading; (c) disposals in the normal course of trading; or 1.6 enter into any new or increased capital commitments with an aggregate value in excess of [omitted, see clause 12.2] save to the extent provided for in the Management Period Budget or enter into any other long term financial commitment calling for aggregate payments by the Manager of more than [omitted, see clause 12.2]. 2. The Manager shall, during the Management Period: 2.1 take all reasonable steps to ensure that positive cash balances are efficiently managed; 2.2 retain any and all income derived from the investment of any cash balances wholly and exclusively within its business. 3. In addition to the information required to be delivered to the Secretary of State under paragraphs 3.1 to 3.9 of Schedule 13.2 (Information) of the Franchise Agreement the Manager shall, at the times and frequencies specified in those paragraphs: -23- 3.1 make full disclosure in writing to the Secretary of State of all material movements in provisions and reserves. -24- SCHEDULE 7 PAYMENTS ON TERMINATION OF THE MANAGEMENT AGREEMENT 1. Not less than 14 days prior to the end of the Management Period, the Manager shall supply to the Secretary of State its estimate of: 1.1 the Cash at Bank balance at the end of the Management Period; [omitted, see clause 12.2] 4. The provisions of Schedule 4 shall continue to apply in respect of T plus 28, save that paragraphs 2 and 3 thereof shall be applied to ensure that the Cash at Bank balance is no more than necessary to meet the liabilities of the Manager detailed in paragraph 5.2.1 shown in the relevant forecast produced pursuant to paragraph 3 of Schedule 4. 5. At the end of T plus 28, the Manager shall supply to the Secretary of State: [omitted, see clause 12.2] 6. The Secretary of State shall pay to the Manager in accordance with the provisions of Schedule 4 the amount submitted pursuant to paragraph 5.1 and, if the Secretary of State agrees with that figure, the amount proposed pursuant to paragraph 5.2. If the Secretary of State does not agree with that figure, and the Manager and the Secretary of State are unable to agree that figure within a period of 28 days from the date of receipt of the proposal made pursuant to paragraph 5.2, the provisions of paragraph 10 shall apply. [omitted, see clause 12.2] 10. In the event of any dispute that arises in respect of payments due to the Manager under this Schedule 7 which parties fail to resolve, either party may refer the dispute for resolution under the Dispute Resolution Rules. 11. Upon agreement or determination of the amounts claimed pursuant to paragraphs 5.2 and 7 above, the Secretary of State shall pay to the Manager: [omitted, see clause 12.2]; 11.2 the amount of the provision in respect of the liabilities referred to in paragraph 5.2 less amounts already paid to the Manager pursuant to paragraphs 3 and 6 above; or if the determination or agreement of such amounts results in identification of an amount due to the Secretary of State, the Manager shall pay such amount to the Secretary of State; and [omitted, see clause 12.2] -25- EX-99.3 4 efc6-2920_ex993.txt Exhibit 99.3 First Monthly Operating Report
UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELWARE - ------------------------------------------------------------ --------------------------------------------------------- In re: Sea Containers Ltd, et al. Case No. 06-11156(KJC) Reporting Period: October 15, 2006 - October 31, 2006 - ------------------------------------------------------------ ---------------------------------------------------------
MONTHLY OPERATING REPORT File with Court and submit copy to United Staes Trustee within 20 days after end of month Submit copy of report to any official committee appointed in the case. - ------------------------------------------------------------------ ----------------- ------------- ---------------- Documents ____________ REQUIRED DOCUMENTS FORMS No. Attached Attached - ------------------------------------------------------------------ ----------------- ------------- ---------------- Schedule of Cash Receipts and Disbursements MOR-1 X - ------------------------------------------------------------------ ----------------- ------------- ---------------- Bank Reconciliation (or copies of debtor's bank MOR-1 (CONT) X reconciliations) - ------------------------------------------------------------------ ----------------- ------------- ---------------- Copies of bank statements - ------------------------------------------------------------------ ----------------- ------------- ---------------- Cash Disbursements journals - ------------------------------------------------------------------ ----------------- ------------- ---------------- Statements of Operations MOR-2 X - ------------------------------------------------------------------ ----------------- ------------- ---------------- Balance Sheet MOR-3 X - ------------------------------------------------------------------ ----------------- ------------- ---------------- Status of Postpetition Taxes MOR-4 X - ------------------------------------------------------------------ ----------------- ------------- ---------------- Copies of IRS Form 6123 or payment receipt - ------------------------------------------------------------------ ----------------- ------------- ---------------- Copies of tax returns filed during reporting period - ------------------------------------------------------------------ ----------------- ------------- ---------------- Summary of Unpaid Postpetition Debts MOR-4 X - ------------------------------------------------------------------ ----------------- ------------- ---------------- Listing of aged accoutns payable - ------------------------------------------------------------------ ----------------- ------------- ---------------- Accounts Receivable Reconciliation and Aging MOR-5 X - ------------------------------------------------------------------ ----------------- ------------- ---------------- Debtor Questionnaire MOR-5 X - ------------------------------------------------------------------ ----------------- ------------- ----------------
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true an dcorrect to the best of my knowledge and belief. /s/ Sea Containers Ltd. - ---------------------------------------- Signature of Debtor Date Dec 13 2006 - ---------------------------------------- Signature of Joint Debtor Date Dec 13 2006 /s/ - ---------------------------------------- Signature of Authorized Individual* Date Dec 13 2006 /s/ IAN CHARLES DURANT - ---------------------------------------- Printed Name of Authorized Individual Title of Authorized Individual. *Authorized individual must be an officer, director or shareholder if debtor is a corporate, a partner if debtor is a partnership, a manager or member if deb tor is a limited liability company. SEA CONTAINERS LTD., et al INDEX TO MONTHLY OPERATING REPORT Description Pages - ----------- ----- General Notes...............................................................1-2 Schedule of Cash Receipts and Disbursements for Sea Containers Ltd. listing bank accounts details with month end period balances................3-4 Schedule for Cash Receipts and Disbursements for Sea Containers Services Ltd. listing bank account details with month end period balances......................................................................5 Bank Reconciliation Attestation...............................................6 Balance Sheet and Statement of Operations for Sea Containers Ltd............7-9 Balance Sheet and Statement of Operations for Sea Containers Services Ltd...................................................10-12 Balance Sheet for Sea Containers Caribbean Inc............................13-14 Schedule of Intercompany Activity for Sea Containers ltd..................15-17 Schedule of Intercompany Activity for Sea Containers Services Ltd............18 Tax Attestation..............................................................19 Statement Regarding Insurance Policies.......................................19 Schedule of Accounts Receivables and Aging for Sea containers Ltd............20 Schedule of Accounts Receivable and Aging for Sea Containers Ltd.............21 Debtor Questionnaire.........................................................22 SEA CONTAINERS LTD., et al MONTHLY OPERATING REPORT, OCTOBER 2006 NOTES TO MONTHLY OPERATING REPORT General - ------- For financial reporting purposes, Sea Containers Ltd. prepared consolidated financial statements relating to Sea Containers Ltd. and its affiliates and subsidiaries (the "Sea Containers Group") that are filed with the Securities and Echange Commission (the "SEC"). Unlike the consolidated financial statements, the financial statements in this report reflect only the assets and liabilities of each individual Debtor (as defined below). The information furnished in this report includes primarily normal recurring adjustments and reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of such financial information. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The financial statements in this report represents the dcompany's internal accounting, on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Ltd. has not filed its form 10-K report for discal year ended December 31, 2005, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006 and September 31, 2006. The certification and audit process may result in adjustments to the stated assets and liabilities. Chapter 11 Reorganization Proceedings - ------------------------------------- On October 15, 2005 (the "Petition Date"), Sea Containers Ltd., Sea Container Services Ltd. and Sea Containers Caribbean Inc. (each a "Debtor" and collectively, the "Debtors") each filed a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The cases were consolidated for the purpose of joint administration. The Debtors are operating their businesses as debtors-in-possession ("DIP") pursuant to the Bankruptcy Code. An official committee of unsecured creditors has been --- appointed (the "Committee"). Pursuant to the provisions of the Bankruptcy Code, all actions to collect upon any of the Debtors' liabilities as of the Petition Date or to enforce pre-petition contractual obligations are automatically stayed. Absent approval from the Bajkruptcy Court, the Debtors are prohibited from paying pre-petitoin obligations. In addition, as a consequence of the chapter 11 filing, pending litigation against the Debtors is generally stayed, and no party may take any action to collect pre-petition claims except pursuant to an order of the Bankruptcy Court. However, the Debtors have requested that the Bankruptcy Court approve certain pre-petition liabilities, such as employee wages and benefits and certain other pre-petition obligations. While the Debtors are subject to chapter 11, all transaction of the Debtors outside the ordinary course of business will require the prior approval of the Bankruptcy Court. At the Initial Debtors Interview with the United States Trustee on November 21, 2006, it was agreed that the Debtors' Monthly Operating Report should consist of the following: o Consolidating Schedule of Cash Receipts and Disbursements by Debtor. o List of all bank accounts detailing the bank, account description, account number, and month end book balance. Attestation that all bank reconciliations have been performed. 1 o Balance Sheets for Each Debtor. o Schedules of the intercompany activity. o Income Statements for each Debtor.(1) o Schedule of Post-Petition fiduciary taxes - Provide Attestation that all taxes are current. o Schedule of Unpaid Post-Petition Debts.(2) o Schedule of Accounts Receivable and Aging. o Debtor Questionnaire. - --------------------------- (1) No income statement has been prepared for Sea Containers Caribbean Inc. since it has not traded in the last 12 months. (2) The Debtors do not have any unpaid post-petition debt for the period of this report. Accordingly, the Debtors have not prepared such a schedule for this report. 2
Sea Containers Limited - ---------------------- Reporting Dates: 10.31.06 ---------- Schedule of Cash Receipts and Disbursements - ----------------------------------------------------------------------------------------------------------------------------------- JP Morgan JP Morgan JP Morgan JP Morgan JP Morgan JP Morgan NatWest A/C 704 A/C 702 A/C 705 A/C 501 A/C 705 A/C 382 A/C 886 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Cash beginning of Month $40,906.00 $0.00 $0.00 $79,367.00 $15,302.00 $40,700.00 $6,749.00 - ----------------------------------------------------------------------------------------------------------------------------------- Receipts - ----------------------------------------------------------------------------------------------------------------------------------- Cash Sales - ----------------------------------------------------------------------------------------------------------------------------------- Accounts Receivable - ----------------------------------------------------------------------------------------------------------------------------------- Loans and Advances - ----------------------------------------------------------------------------------------------------------------------------------- Sale of Assets - ----------------------------------------------------------------------------------------------------------------------------------- Foreign Exchange Revaluation $2474.00 - ----------------------------------------------------------------------------------------------------------------------------------- Interest Income - ----------------------------------------------------------------------------------------------------------------------------------- Sweep Movements - ----------------------------------------------------------------------------------------------------------------------------------- Other (attach list) - ----------------------------------------------------------------------------------------------------------------------------------- Transfers (From DIP Accts) - ----------------------------------------------------------------------------------------------------------------------------------- Container Rental $94,089.00 $23,340.00 $730,566.00 - ----------------------------------------------------------------------------------------------------------------------------------- Total Reciepts $94,089.00 $0.00 $0.00 $2,474.00 $23,340.00 $0.00 $730,566.00 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Disbursements - ----------------------------------------------------------------------------------------------------------------------------------- Net Payroll - ----------------------------------------------------------------------------------------------------------------------------------- Payroll Taxes - ----------------------------------------------------------------------------------------------------------------------------------- Sales Use & Other Taxes - ----------------------------------------------------------------------------------------------------------------------------------- Inventory Purchases - ----------------------------------------------------------------------------------------------------------------------------------- Secured/Rental/Leases - ----------------------------------------------------------------------------------------------------------------------------------- Insurance - ----------------------------------------------------------------------------------------------------------------------------------- Administrative - ----------------------------------------------------------------------------------------------------------------------------------- Selling - ----------------------------------------------------------------------------------------------------------------------------------- Other (Attach List) - ----------------------------------------------------------------------------------------------------------------------------------- Bank Charges - ----------------------------------------------------------------------------------------------------------------------------------- Owner Draw* - ----------------------------------------------------------------------------------------------------------------------------------- Transfers (To DIP Accts) - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Professional Fees - ----------------------------------------------------------------------------------------------------------------------------------- U.S. Trustee Quarterly Fees - ----------------------------------------------------------------------------------------------------------------------------------- Court Costs - ----------------------------------------------------------------------------------------------------------------------------------- Total Disbursements $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Net Cash Flow (Receipts Less Disbursements) $94,089.00 $0.00 $0.00 $2,474.00 $23,340.00 $0.00 $730,566.00 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Cash End of Month $134,995.00 $0.00 $0.00 $81,841.00 $38,642.00 $40,700.00 $737,315.00 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Bank of Bank of Bank of Bank of Bank of Societe Barclays America America Scotland Scotland Scotland Generale A/C399 A/C 015 A/C 023 A/C USD01 A/C 242 A/C 001 A/C N/A - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Cash beginning of Month $27.00 $91,496.00 $0.00 $435.00 $1,168.00 $0.00 $48,915,946.00 - ----------------------------------------------------------------------------------------------------------------------------- Receipts - ----------------------------------------------------------------------------------------------------------------------------- Cash Sales - ----------------------------------------------------------------------------------------------------------------------------- Accounts Receivable - ----------------------------------------------------------------------------------------------------------------------------- Loans and Advances - ----------------------------------------------------------------------------------------------------------------------------- Sale of Assets - ----------------------------------------------------------------------------------------------------------------------------- Foreign Exchange Revaluation - ----------------------------------------------------------------------------------------------------------------------------- Interest Income $125,803.00 - ----------------------------------------------------------------------------------------------------------------------------- Sweep Movements $974,419.00 - ----------------------------------------------------------------------------------------------------------------------------- Other (attach list) - ----------------------------------------------------------------------------------------------------------------------------- Transfers (From DIP Accts) - ----------------------------------------------------------------------------------------------------------------------------- Container Rental - ----------------------------------------------------------------------------------------------------------------------------- Total Reciepts $0.00 $974,419.00 $0.00 $0.00 $0.00 $0.00 $125,803.00 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Disbursements - ----------------------------------------------------------------------------------------------------------------------------- Net Payroll - ----------------------------------------------------------------------------------------------------------------------------- Payroll Taxes - ----------------------------------------------------------------------------------------------------------------------------- Sales Use & Other Taxes - ----------------------------------------------------------------------------------------------------------------------------- Inventory Purchases - ----------------------------------------------------------------------------------------------------------------------------- Secured/Rental/Leases - ----------------------------------------------------------------------------------------------------------------------------- Insurance - ----------------------------------------------------------------------------------------------------------------------------- Administrative - ----------------------------------------------------------------------------------------------------------------------------- Selling - ----------------------------------------------------------------------------------------------------------------------------- Other (Attach List) - ----------------------------------------------------------------------------------------------------------------------------- Bank Charges - ----------------------------------------------------------------------------------------------------------------------------- Owner Draw* - ----------------------------------------------------------------------------------------------------------------------------- Transfers (To DIP Accts) - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Professional Fees - ----------------------------------------------------------------------------------------------------------------------------- U.S. Trustee Quarterly Fees - ----------------------------------------------------------------------------------------------------------------------------- Court Costs - ----------------------------------------------------------------------------------------------------------------------------- Total Disbursements $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Net Cash Flow (Receipts Less Disbursements) $0.00 $974,419.00 $0.00 $0.00 $0.00 $0.00 $125,803.00 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Cash End of Month $27.00 $1,065,915.00 $0.00 $435.00 $1,168.00 $0.00 $49,041,749.00 - ----------------------------------------------------------------------------------------------------------------------------- * Compensation To Sole Proprietors For Services Rendered To Bankruptcy Estate
- ------------------------------------------------------------------------------------------------------------ Disbursements For Calculating U.S. Trustee Quarterly Fees (From Current Month Actual Column) - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ Total Disbursements $124,323.00 - ------------------------------------------------------------------------------------------------------------ Less: Transfers To Debtor In Possession Accounts $0.00 - ------------------------------------------------------------------------------------------------------------ Plus: Estate Disbursements Made By Outside Sources (i.e. From Escrow Accounts) $0.00 - ------------------------------------------------------------------------------------------------------------ Total Disbursements For Calculating U.S. Trustee Quarterly Fees $124,323.00 - ------------------------------------------------------------------------------------------------------------ Note: The Debtors believe that disbursements between Sea Containers Ltd. and Sea Container Services Ltd. so that the other entity can make disbursements should not be counted twice as disbursements in calculating the U.S. Trustee Quarterly Fees. 3
Sea Containers Limited - ----------------------
- ----------------------------------------------------------------------------------------------------------------------------------- Societe Commerce JPMC Marine Bank of Bank of Generale Bank SCL Deposit Midland Bermuda Bermuda A/C 032 A/C 282 A./C 706 A/C 298.2 A/C 52590 A/C 5539 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Cash beginning of Month $2,719.00 $250,970.00 $32,148.00 $131,885.00 $27,029.00 $1,865.00 - ----------------------------------------------------------------------------------------------------------------------------------- Receipts - ----------------------------------------------------------------------------------------------------------------------------------- Cash Sales - ----------------------------------------------------------------------------------------------------------------------------------- Accounts Receivable - ----------------------------------------------------------------------------------------------------------------------------------- Loans and Advances - ----------------------------------------------------------------------------------------------------------------------------------- Sale of Assests - ----------------------------------------------------------------------------------------------------------------------------------- Foreign Exchange Revaluation - ----------------------------------------------------------------------------------------------------------------------------------- Interest Income - ----------------------------------------------------------------------------------------------------------------------------------- Sweep Movements - ----------------------------------------------------------------------------------------------------------------------------------- Other (attach list) - ----------------------------------------------------------------------------------------------------------------------------------- Transfers (From DIP Accts) - ----------------------------------------------------------------------------------------------------------------------------------- Container Rental $19,861.00 - ----------------------------------------------------------------------------------------------------------------------------------- Total Reciepts $0.00 $0.00 $0.00 $19,861.00 $0.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Disbursements - ----------------------------------------------------------------------------------------------------------------------------------- Net Payroll - ----------------------------------------------------------------------------------------------------------------------------------- Payroll Taxes - ----------------------------------------------------------------------------------------------------------------------------------- Sales Use & Other Taxes - ----------------------------------------------------------------------------------------------------------------------------------- Inventory Purchases - ----------------------------------------------------------------------------------------------------------------------------------- Secured/Rental/Leases - ----------------------------------------------------------------------------------------------------------------------------------- Insurance - ----------------------------------------------------------------------------------------------------------------------------------- Administrative - ----------------------------------------------------------------------------------------------------------------------------------- Selling - ----------------------------------------------------------------------------------------------------------------------------------- Other (Attach List) - ----------------------------------------------------------------------------------------------------------------------------------- Bank Charges - ----------------------------------------------------------------------------------------------------------------------------------- Owner Draw* - ----------------------------------------------------------------------------------------------------------------------------------- Transfers (To DIP Accts) - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Professional Fees - ----------------------------------------------------------------------------------------------------------------------------------- U.S. Trustee Quarterly Fees - ----------------------------------------------------------------------------------------------------------------------------------- Court Costs - ----------------------------------------------------------------------------------------------------------------------------------- Total Disbursements $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Net Cash Flow (Receipts Less Disbursements) $0.00 $0.00 $0.00 $19,661.00 $0.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Cash End of Month $2,719.00 $250,970.00 $32,148.00 $151,546.00 $27,029.00 $1,865.00 - ----------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- Barclays Current Month Cumulative Filing to Date Bank A/C INS & TEE Actual Projected Actual Projected - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- Cash beginning of Month $467,500.00 $50,106,012.00 $0.00 $50,106,012.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Receipts - --------------------------------------------------------------------------------------------------------------------------- Cash Sales $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Accounts Receivable $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Loans and Advances $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Sale of Assests $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Foreign Exchange Revaluation $7,500.00 $9,974.00 $9,974.00 - --------------------------------------------------------------------------------------------------------------------------- Interest Income $125,803.00 $125,803.00 - --------------------------------------------------------------------------------------------------------------------------- Sweep Movements $974,419.00 $974,419.00 - --------------------------------------------------------------------------------------------------------------------------- Other (attach list) $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Transfers (From DIP Accts) $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Container Rental $867,856.00 $867,856.00 - --------------------------------------------------------------------------------------------------------------------------- Total Reciepts $7,500.00 $1,978,052.00 $0.00 $1,978,052.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- Disbursements - --------------------------------------------------------------------------------------------------------------------------- Net Payroll $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Payroll Taxes $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Sales Use & Other Taxes $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Inventory Purchases $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Secured/Rental/Leases $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Insurance $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Administrative $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Selling $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Other (Attach List) $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Bank Charges $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Owner Draw* $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Transfers (To DIP Accts) $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Professional Fees $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- U.S. Trustee Quarterly Fees $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Court Costs $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- Total Disbursements $0.00 $0.00 $0.00 $0.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- Net Cash Flow (Receipts Less Disbursements) $7,500.00 $1,978,052.00 $0.00 $1,978,052.00 $0.00 - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- Cash End of Month $475,000.00 $52,084,064.00 $0.00 $52,084,064.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------
4
Sea Containers Services Limited - ------------------------------- Reporting Dates: 10.31.06 ----------------- Schedule of Cash Receipts and Disbursements in $USD - ----------------------------------------------------------------------------------------------------------------------------- Bank of NatWest PLC Barclays Bank Bank of America Scotland Commerce Bank A/C # 420 A/C 724 A/C 013 A/C 234 A/C 131 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Cash beginning of Month $294.00 $9,029.00 $0.00 $3,504.00 $250,000.00 - ----------------------------------------------------------------------------------------------------------------------------- Receipts - ----------------------------------------------------------------------------------------------------------------------------- Cash Sales - ----------------------------------------------------------------------------------------------------------------------------- Accounts Receivable - ----------------------------------------------------------------------------------------------------------------------------- Loans and Advances - ----------------------------------------------------------------------------------------------------------------------------- Sale of Assets - ----------------------------------------------------------------------------------------------------------------------------- Funding From SCL $112,000.00 - ----------------------------------------------------------------------------------------------------------------------------- Other (attach list) - ----------------------------------------------------------------------------------------------------------------------------- Transfers (From DIP Accts) - ----------------------------------------------------------------------------------------------------------------------------- Total Receipts $0.00 $0.00 $112,000.00 $0.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Disbursements - ----------------------------------------------------------------------------------------------------------------------------- Net Payroll $294.00 $9,029.00 $3,000.00 - ----------------------------------------------------------------------------------------------------------------------------- Payroll Taxes - ----------------------------------------------------------------------------------------------------------------------------- Sales Use & Other Taxes - ----------------------------------------------------------------------------------------------------------------------------- Inventory Purchases - ----------------------------------------------------------------------------------------------------------------------------- Secured/Rental/Leases - ----------------------------------------------------------------------------------------------------------------------------- Insurance - ----------------------------------------------------------------------------------------------------------------------------- Administrative - ----------------------------------------------------------------------------------------------------------------------------- Selling - ----------------------------------------------------------------------------------------------------------------------------- Rates (Real Estate Tax) $112,000.00 - ----------------------------------------------------------------------------------------------------------------------------- Other (Attach List) - ----------------------------------------------------------------------------------------------------------------------------- Owner Draw* - ----------------------------------------------------------------------------------------------------------------------------- Transfers (To DIP Accts) - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Professional Fees - ----------------------------------------------------------------------------------------------------------------------------- U.S. Trustee Quarterly Fees - ----------------------------------------------------------------------------------------------------------------------------- Court Costs - ----------------------------------------------------------------------------------------------------------------------------- Total Disbursements $294.00 $9,029.00 $115,000.00 $0.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Net Cash Flow (Receipts Less Disbursements) -$294.00 -$9,029.00 -$3,000.00 $0.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- Cash End of Month $0.00 $0.00 -$3,000.00 $3,504.00 $250,000.00 - ----------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- Current Month Cumulative Filing to date Actual Projected Actual Projected - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- Cash beginning of Month $262,827.00 $0.00 $262,827.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Receipts - ---------------------------------------------------------------------------------------------------------------------------------- Cash Sales $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Accounts Receivable $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Loans and Advances $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Sale of Assets $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Funding From SCL $112,000.00 $112,000.00 - ---------------------------------------------------------------------------------------------------------------------------------- Other (attach list) $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Transfers (From DIP Accts) $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Total Receipts $0.00 $112,000.00 $0.00 $112,000.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- Disbursements - ---------------------------------------------------------------------------------------------------------------------------------- Net Payroll $12,323.00 $12,323.00 - ---------------------------------------------------------------------------------------------------------------------------------- Payroll Taxes $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Sales Use & Other Taxes $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Inventory Purchases $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Secured/Rental/Leases $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Insurance $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Administrative $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Selling $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Rates (Real Estate Tax) $112,000.00 $112,000.00 - ---------------------------------------------------------------------------------------------------------------------------------- Other (Attach List) $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Owner Draw $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Transfers (To DIP Accts) $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Professional Fees $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- U.S. Trustee Quarterly Fees $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Court Costs $0.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- Total Disbursements $0.00 $124,323.00 $0.00 $124,323.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- Net Cash Flow (Receipts Less Disbursements) $0.00 -$12,323.00 $0.00 -$12,323.00 $0.00 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- Cash End of Month $0.00 $250,504.00 $0.00 $250,504.00 $0.00 - ----------------------------------------------------------------------------------------------------------------------------------
* Compensation To Sole Proprietors For Services Rendered To Bankruptcy Estate
- -------------------------------------------------------------------------------------------------------------------------------- Disbursements For Calculating U.S. Trustee Quarterly Fees (From Current Month Actual Column) - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- Total Disbursements $124,323.00 - -------------------------------------------------------------------------------------------------------------------------------- Less: Transfers To Debtor In Possession Accounts $0.00 - -------------------------------------------------------------------------------------------------------------------------------- Plus: Estate Disbursements Made By Outside Sources (i.e. From Escrow Accounts) $0.00 - -------------------------------------------------------------------------------------------------------------------------------- Total Disbursements For Calculating U.S. Trustee Quarterly Fees $124,323.00 - --------------------------------------------------------------------------------------------------------------------------------
Note: The Debtors believe that disbursements between Sea Containers Ltd. and Sea Container Services Ltd. so that the other entity can make disbursements should not be counted twice as disbursements in calculating the U.S. Trustee Quarterly Fees. Reconciliation books to ledger USD $0 - ------------------------------ ------ Cash in bank at the end of the month $250,504.00 Petty Cash $14,407.00 Foreign Translation adjustment on Commerce Bank $250,000 $6,758.00 -------------------- Balance per Sea Containers Services Financials October 31, 2006 $271,669.00 ==================== 5
BANK RECONCILIATIONS - -------------------- The Debtors confirm and attest that all bank reconciliations have been performed for Sea Containers Ltd. and Sea Containers Services Ltd. Bank reconciliations are not applicable to Sea Containers Caribbean Inc. because it does not have any bank accounts. 6
SEA CONTAINERS LIMITED BALANCE SHEET Unaudited Unaudited -------------- --------------- Note October 31, September 30, 2006 2006 ---------- -------------- --------------- Assets Current assets Cash and cash equivalents $ 52,084,064 $ 41,765,342 Trade receivables - less allowances for doubtful accounts of $1.773 million 1,197,118 1,239,265 Due from related parties (4) 10,077,614 9,751.096 Prepaid expenses and other current assets 4,369,498 1,240,709 -------------- --------------- Total current assets 67,728,294 53,996,412 Fixed assets, net (5) - 56,726,547 Long-term equipment sales receivables, net (5) - 17,467,972 Investment in group companies (2) - - Intercompany receivables (3) - - Investment in equity ownership interests (6) 199,120,137 196,477,948 Other assets (7) 3,454,797 5,298,877 -------------- --------------- Total assets (1) $ 270,303,229 $ 329,967,755 ============== ===============
(1) Sea Containers Limited does not produce company only accounts. This statement of assets represents the Sea containers Group's internal accounting, on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Ltd, has not filed its form 10-K report for fiscal year ended December 31, 2005, nor has it field form 10-Q reports for the quarters ended march 31, 2006, June 30, 2006 and September 30, 2006. The certification and audit process may result in adjustments to the above stated assets. (2) As the parent cmopany for the Sea Containers Group, Sea Containers Ltd. has an amount of $323,377,414 recorded in its books as an investment in subsidiary companies. The Sea Containers Group is presently undergoing an exercise to ascertain the value contained within its subsidiaries. Management's current view is that this investment is significantly impaired; therefore, whilst this exercise is underway, Sea Containers Ltd feels it appropriatee to make full provision against the investment in subsidiaries. (3) The Sea Containers Group has a highly compolex intercompany matrix that involves a large number of amounts receivable and payable. These are held as gross figues within the individual company accounting records but are netted off for the purposes of external presentation. The Sea Containers Group is in the process of evaluating all intercompany receivables and payables as part of its exercise to ascertain value held in subsidiary companies. See Containers Ltd. has a net intercompany receivable from its direct and indirect subsidiaries of $598,205,531. This represents a gross intercompany payable of $1,135,243,575 and a gross intercompany receivable of $1,733,449,106. Full provision has been made against this net amount whilst the exercise to ascertain value is underway. It si possible that individual subsidiaries may have a claim against Sea Containers Ltd. and the netting off exercise in Sea Container Ltd.'s accounts is not prejudicial to any such claim that a subsidiary may have. (4) The amounts due from related parties largely consist of an amount due from GE SeaCo SRL ("GE SeaCo"). This amount represents the anticipated recovery from GE SeaCo on completion of an expected set-off agreement which is currently being negotiated between Sea Containers Ltd., Sea Containers Group companies and GE SeaCo and its affiliate companies. (5) Fixed assets and long-term equipment sales receivable realted to containers. On October 3, 2006, Sea Containers Ltd. transferred the majority of these containers to a Special Purpose Company wholly owned by Sea Containers Ltd. to enable refinancing of the container fleet. These containers were transferred at Net Book Value. On October 12, 2006, the remaining assets were sold to a third party. (6) This balance almost entirely consists of the carrying value of the Sea Containers Ltd.'s investment in GE SeaCo. (7) $3,45 million of the Other Assets balance represent the unamoritized part of capitalized finance costs in relation to certain of Sea Containers Ltd.'s facilities that were repaid on October 3, 2006, at which time this asset was written off. 7
SEA CONTAINERS LIMITED BALANCE SHEET Unaudited Unaudited ---------------- ---------------- Note October 31, September 30, 2006 2006 --------- ---------------- ---------------- Liabilities and shareholder's equity Current liabilities Account payable $ 14,462 $ 1,013,982 Accrued expenses 24,978,283 24,117,831 Current portion of long-term debt 26,042,311 34,936,583 Current portion of senior notes 385,040,923 384,706,801 ---------------- ---------------- Total current liabilities 436,075,980 444,775,198 Total shareholders' equity (10) (165,772,752) (114,807,443) ---------------- ---------------- Total liabilities and shareholders' equity (8), (9) $ 270,303,228 $ 329,967,755 ================ ================
(8) Sea Containers Ltd. does not produce company only accounts. This statement of liabilities and shareholders' equity represents the Sea Containers Group's internal accounting on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Group has not filed its form 10-K report has not filed its form 10-K report for fiscal year ended December 31, 2005, nor has it field form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006 and eptember 31, 2006. The certification and audit process may result in adjustments to the above stated liabilities and shareholders' equity. (9) The United Kingdom government Pensions Regulator (which regulates employment-based pension plans in the UK and aims to protect the benefits of members of UK pension plans) has issued notices to Sea Containers Ltd. on October 19, 2006 warning that the Regulator is considering exercising its powers to issue financial support directions ("FSDs") to Sea Containers Ltd. under relevant UK pensions legislation, in respect of the Sea Containers 1983 Pension Scheme (the "1983 Scheme") and the Sea Containers 19990 Pension Scheme (the "1990 Scheme") (together the "Schemes") These are multi-employer defined benefit pension plans of Sea Containers Services Ltd., a UK subsidiary of Sea Containers Ltd. If FSDs are issued to Sea Containers Ltd., it may be liable to make a financial contribution to one or both of the Schemes which may be greater than the sum payable by Sea Containers Ltd. in respect of pension liabilities under the terms of a support agreement between Sea Containers Ltd. and Sea Containers Services Ltd. entered into in 1989 under which the Sea Containers Services Ltd. provides administrative services to Sea Containers Ltd. and other subsidiaries and is indemnified by Sea Containers Ltd. for the cost of those services. The Trustees of the Schemes or their actuary have advised Sea Containers Ltd. that their current estimates of the cost of winding up the Schemes, including the cost of purchasing annuities to pay projected benefit obligations to Scheme participants, would be approximately (pound)107 million ($201 million) for the 1983 Scheme (after giving effect to the withdrawal of a GE SeaCo SRL subsidiary from the 1983 Scheme) and approximately (pound)27 million ($51 million) for the 1990 Scheme. These values are stated as at 31 December 2005 and are subject to revision. Because the Schemes are multi-employer plans, the liabilities under them are shared among the participating companies. Sea Containers Ltd. cautions, however, that these estimated costs have not been agreed by Sea Containers Ltd. and that no FSDs have been issued. Sea Containers Ltd. is considering its reply to the Regulator's warning notices and does not accept that it is reasonable or appropriate for the Regulator to issue FSDs. (10) Shareholders' Equity is calculated after all adjustments that have been noted in notes (1) to (9) above. In particular, the treatment of investments in group companies and net intercompany receivables as discussed in notes (3) and (4) have a material effect on Shareholders' Equity. Any adjustment to this policy which may arise on completion of the exercise to ascertain value held in subsidiary companies and the associated evaluation of intercompany receivables and payables may have a material impact on Shareholders' Equity as stated. 8
SEA CONTAINERS LIMITED STATEMENT OF OPERATIONS Unaudited ------------------------- For the One Month End Note October 31, 2006 ------- ------------------------- Revenue (12) $ 2,938,790 Costs and expenses: Operating costs 407,541 Selling, general and administrative expenses (8,560,523) Charges to provide against intercompany accounts (13) (39,630,334) Depreciation & amortization 58,700 ------------------------- Total costs and expenses (47,724,616) ------------------------- Loss on sale of assets (1,681,276) ------------------------- Operating (loss) income (46,467,102) Other income (expense) Interest income 141,572 Foreign exchange gains or (losses) 26,875 Interest expense, net of capitalized interest (4,554,537) ------------------------- (Loss) income before taxes (50,853,192) Income tax expense (100,000) ------------------------- Net (loss) (11) $ (50,953,192) =========================
(11) Sea Containers Ltd. does not produce company only accounts. This statement of operations represents the Sea Containers Group's internal accounting, on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Ltd. has not filed its form 10-K report for fiscal year ended December 31, 2005, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006. The certification and audit process may result in adjustments to the above stated net loss. (12) Revenue includes $2,879,000 in respect of the Sea Containers Ltd.'s equity interest in GE SeaCo. (13) Sea Containers Ltd.'s policy prior to the bankruptcy filing date was to make provisions for the net receivable due from subsidiary companies of Sea Containers Ltd. The provision for charges noted above relates to increases in the net receivable balance due from subsidiary companies in the month. The increase in that receivable balance largely arose from four sources. The first was the $15.9m repayment of container debt owed by a subsidiary company but guaranteed by Sea Containers Ltd. The second was the advance of $10.5m to a subsidiary company wholly owned by Sea Containers Ltd to maintain the operating integrity of certain subsidiary companies valuable to Sea Containers Ltd.. The third amount of $1 l .1 m relates to funding of the sister debtor company, Sea Containers Services Ltd., which incurs administrative costs on behalf of Sea Containers Ltd. The fourth is a net $4.5m payment of the debt mortgaged on a ship owed by a subsidiary as part of a process to enable that ship to be sold for future value to Sea Containers Ltd. 9
SEA CONTAINERS SERVICES LIMITED BALANCE SHEET Unaudited Unaudited ---------------- ---------------- October 31, September 30, Note 2006 2006 --------- ---------------- ---------------- Assets Current assets Cash and cash equivalents $ 271,669 $ 11,126 Trade receivables 475,166 878,582 Due from related parties 5,772,379 3,950,785 Prepaid expenses and other current assets 11,455,103 2,731,517 ---------------- ---------------- Total current assets 17,974,318 7,572,010 Fixed assets, net 3,324,754 3,547,684 Investments 2,556,283 2,515,921 Intercompany receivables (2) 34,081,044 45,799,756 Other assets 14,293 15,823 ---------------- ---------------- Total assets (1) $ 57,950,692 $ 59,451,195 ================ ================
(1)This statement of assets reflects the Sea Containers Group's internal accounting, on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Ltd. has not filed its form 10-K report for fiscal year ended December 31, 2005, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006, and September 30, 2006. The certification and audit process may result in adjustments to the above stated assets. The foreign exchange rate used to translate October 31, 2006 and September 30, 2006 was $1.90 and $1.87 respectively. (2) Sea Containers Services Ltd. has net intercompany receivables of $34,081,044. This represents gross intercompany receivables of $114,379,545 and gross intercompany payables of $80,298,500. The Sea Containers Group has a highly complex intercompany accounting process. The Sea Containers Group is currently in the process of evaluating all intercompany receivables and payables as part of its exercise to ascertain value held in subsidiary companies. Whilst this exercise remains ongoing Sea Containers Services Ltd. regards it as appropriate to reflect the full intercompany receivables and payables within its Balance Sheet on a net basis, but it is possible that a full or partial provision against its intercompany balances will be required on completion of the evaluation. 10
SEA CONTAINERS SERVICES LIMITED BALANCE SHEET Unaudited Unaudited ------------------- ------------------- October 31, September 30, Note 2006 2006 ---------- ------------------- ------------------- Liabilities and shareholders' equity Current liabilities Accounts payable $ 53,866 $ 4,099,044 Accrued payable 5,734,918 4,253,855 Current Portion of long-term debt 1,836,524 1,979,002 ------------------- ------------------- Total current liabilities 7,625,309 10,331,901 Total shareholders' equity 50,325,384 49,119,294 ------------------- ------------------- Total liabilities and shareholders' equity (3), (4) $ 57,950,692 $ 59,451,195 =================== ===================
(3) This statement of liabilities reflects the Sea Containers Group's internal accounting, on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Ltd. has not filed its form 10-K report for fiscal year ended December 31, 2005, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006. The certification and audit process may result in adjustments to the above stated liabilities. (4) The United Kingdom government Pensions Regulator (which regulates employment-based pension plans in the UK and aims to protect the benefits of members of UK pension plans) has issued notices to Sea Containers Ltd. on October 19, 2006 warning that the Regulator is considering exercising its powers to issue financial support directions ("FSDs") to Sea Containers Ltd. under relevant UK pensions legislation, in respect of the Sea Containers 1983 Pension Scheme (the "1983 Scheme") and the Sea Containers 1990 Pension Scheme (the "1990 Scheme") (together the "Schemes"). These are multi-employer defined benefit pension plans of Sea Containers Services Ltd., a UK subsidiary of Sea Containers Ltd. If FSDs are issued to Sea Containers Ltd., it may be liable to make a financial contribution to one or both of the Schemes which may be greater than the sum payable by Sea Containers Ltd. in respect of pension liabilities under the terms of a support agreement between Sea Containers Ltd. and Sea Containers Services Ltd. entered into in 1989 under which the Sea Containers Services Ltd provides administrative services to Sea Containers Ltd. and other subsidiaries and is indemnified by Sea Containers Ltd for the cost of those services. The Trustees of the Schemes or their actuary have advised Sea Containers Ltd. that their current estimates of the cost of winding up the Schemes, including the cost of purchasing annuities to pay projected benefit obligations to Scheme participants, would be approximately (pound)107 million ($201 million) for the 1983 Scheme (after giving effect to the withdrawal of a GE SeaCo SRL subsidiary from the 1983 Scheme) and approximately (pound)27 million ($51 million) for the 1990 Scheme. These values are stated as at 31 December 2005 and are subject to revision. Because the Schemes are multi-employer plans, the liabilities under them are shared among the participating companies. Sea Containers Ltd. cautions, however, that these estimated costs have not been agreed by Sea Containers Ltd. and that no FSDs have been issued. Sea Containers Ltd. is considering its reply to the Regulator's warning notices and does not accept that it is reasonable or appropriate for the Regulator to issue FSDs.
SEA CONTAINERS SERVICES LIMITED STATEMENT OF OPERATIONS Unaudited ----------------------- For the One Month End Note October 31, 2006 ------- ----------------------- Revenue $ 3,880,991 Costs and expenses: Operating costs - Selling, general and administrative expenses (3,365,471) Other charges - Depreciation & amortization (128,661) ------------------------- Total costs and expenses (3,494,132) ------------------------- Gains on sale of assets 42,273 ------------------------- Operating (loss) income 429,132 Other income (expense) Interest income 13 Foreign exchange gains or (losses) 187 Interest expense, net of capitalized interest (11,252) ------------------------- (Loss) income before taxes 418,080 Income tax expense - ------------------------- Net income (5) $ 418,080 =========================
(5) This statement of operations reflects the Sea Containers Group's internal accounting, on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Ltd. has not filed its form 10-K report for fiscal year ended December 31, 2005, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006. The certification and audit process may result in adjustments to the above stated net income. 12
SEA CONTAINERS CARIBBEAN INC. BALANCE SHEET Unaudited Unaudited ----------------- -------------------- October 31, September 30, Note 2006 2006 --------- ----------------- -------------------- Assets Current assets Cash and cash equivalents $ - $ - Deferred Tax - - Due from related parties - - Prepaid expenses and other current assets - - ----------------- -------------------- Total current assets - - Fixed assets, net - - Investments - - Intercompany receivables - - Other assets - - ----------------- -------------------- Total assets (1) - - ================= ====================
1) This statement of liabilities represents the Sea Containers Group's internal accounting, on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Ltd. has not filed its form 10-K report for fiscal year ended December 31, 2005, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006. The certification and audit process may result in adjustments to the above stated liabilities. Sea Containers Caribbean Inc. has not traded in the last twelve months. 13
SEA CONTAINERS CARIBBEAN INC. BALANCE SHEET Unaudited Unaudited ---------------- ------------------ October 31, September 30, Note 2006 2006 ------------ ---------------- ------------------ Liabilities and shareholders' equity Current liabilities Accounts payable $ 3,530,094 $ 3,530,094 Accrued expenses - Current portion of long-term debt - ---------------- ------------------ Total current liabilities 3,530,094 3,530,094 Total shareholders' equity (3,530,094) (3,530,094) ---------------- ------------------ Total liabilities and shareholders' equity (2) $ - $ - ================ ==================
(2) This statement of liabilities represents the Sea Containers Group's internal accounting, on an unaudited and uncertified basis. As of October 31, 2006, Sea Containers Ltd. has not filed its form 10-K report for fiscal year ended December 31, 2005, nor has it filed form 10-Q reports for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006. The certification and audit process may result in adjustments to the above stated liabilities. Sea Containers Caribbean Inc. has not traded in the last twelve months. 14
Intercompany Balances Sea Containers Ltd. - ----------------------------------------- As at September 30, 2006 As at October 31, 2006 Movement ------------------------ ---------------------- -------- SCL SCL SCL Company Company Company Company Name Total Total Total - ------------------------------------------- ------------------------ ---------------------- -------- $ $ $ SC British Isles 119,031,526.97 116,545,639.05 (2,485,867.92) SC Italia 13,466,165.00 13,466,165.00 - Super SeaCat Italia (130.02) (130.02) - SC Italia Holdings (66,621.02) (66,621.02) - SC Services 65,382.576.90 76,536,834.97 11,154,258.07 Hart Fenton (11,151.72) (11,453.13) (301.41) SC Chartering (67.79) (64.48) 3.31 Yorkshire Marine Containers (13,030,555.31) (11,354.777.66) 1,675,777.65 Illustrated London News (17,553,769.80) (19,084,038.56) (1,530,268.76) West Australia Line 1,222,855.12 1,222,855.12 - Ferry & Port Holdings 832,954,647.01 846,965,450.69 14,010,803.68 SC Finland (Ex Silja Holdings) 11,893,072.54 11,994,063.61 100,991.07 Silja OYB - - - Silja Services (18,308.919.17) (18,308.919.17) - Liverpool Dublin (39.68) (40.32) (0.64) Hoverspeed (0.09) (0.09) - Hoverspeed GB (90,273.81) (272,910.06) (182,636.25) SC UK (953,472,121.86) (967,257,699.21) (13,785,577.35) Burginhall 818 (37,401.87) (38,001.91) (600.04) SC America Inc 8,112,418.07 8,196,197.21 83,779.14 SeaCo Parts Inc (397,077.97) (400,369.70) (3,291.73) CMCI 2,611,781.45 2,611,781.45 - SC Asia Pte 617,671.57 668,397.05 50,725.48 SC Ports & Ferries (80,680,291.86) (80,680,291.86) - IOMSPCO (SeaCat 27) 21,526,364.04 21,710,981.22 184,617.18 Balance transfer to be cleared 4,285,658.35 - (4,285.658.35) SC Australia (7,451,487.35) 7,902.610.06 15,354,097.41 15
Intercompany Balances Sea Containers Ltd. - ----------------------------------------- As at September 30, 2006 As at October 31, 2006 Movement ------------------------ ---------------------- -------- SCL SCL SCL Company Company Company Company Name Total Total Total - ------------------------------------------- ------------------------ ---------------------- -------- $ $ $ IRS NZ - - - Cooltainers 138,098.10 138,098.10 - SCL New Units - - - SPC 270,612,124.92 270,447,995.48 (164,129.44) SC Brasilia 10,383,345.74 10,383,345.74 - SC Iberia (5,896,015.82) (5,606,801.39) 289,214.43 Mobilbox 182.00 182.00 - Strider 2 4,222,504.02 4,222,504.02 - Vessel Holdings 3 7,644,985.16 7,644,985.16 - Strider 1 - - - Strider 9 1,938.177.59 1,938,177.59 - Strider 10 8,821,179.07 8,821,179.07 - Technitank 600,000.00 600,000.00 - Boxer 2 2,731.302.40 2,731.302.40 - Boxer 3 13,419,698.26 13,419,698.26 - Contender 1 36,712.497.88 36,712.497.88 - Contender 2 (5,116,079.45) (5,116,079.45) - Pacifica Ship Management 196,459.99 196.459.99 - Nagara Tam 854,523.79 854,523.79 - Nagara Ltd 1,052,674.81 1,052,674.81 - Atlantic Maritime Services (3,184,810.87) (2,591,280.21) 593,530.66 Seafast Management Services 63,964.94 63,964.94 - Paulista Containers 25,334.580.84 25,334.580.84 - Marine Container Insurance (11,709.726.72) (11,761,726.72) (52,000.00) Brasiluvas Agricola 3,199,530.57 3,207,530.57 8,000.00 Societe Bananiere De Motobe (1,532,742.94) (1,532,742.94) - SC Properties 10,217,854.10 10,217,854.10 - 16
Intercompany Balances Sea Containers Ltd. - ----------------------------------------- As at September 30, 2008 As at October 31, 2006 Movement ------------------------ ---------------------- -------- SCL SCL SCL Company Company Company Company Name Total Total Total - ------------------------------------------- ------------------------ ---------------------- -------- $ $ $ Vessel Holdings 2,390.776.55 2,390.776.55 - SC Holdings (17,052,664.02) (17,326,240.47) (273,576.45) SeaCat 2 (1,697.563.54) (1,697,563.54) - SeaCat 3 0.11 0.11 - SeaCat 4 17,989.357.77 18,094.927.27 105,569.50 SC Mauritius 51,996.34 52,101.57 105.23 Freight Containers India (21,232.07) 17.83 21,249.90 Super SeaCat 1 20,219,246.16 20,332,211.56 112,965.40 Super SeaCat 2 25,453,607.47 25,554,692.59 101,085.12 Super SeaCat 3 8,235,689.28 8,385,977.60 150,288.32 Super SeaCat 4 12,664,046.80 12,814,374.88 150,328.08 SeaCat Ltd 18,248,369.93 18,418,966.57 170,596.64 SeaCat 6 11,497,399.67 11,825,357.16 327,957.49 SeaCat 7 19,370,278.85 24,448,616.18 5,078,337.33 SC Ropex 3,310,671.02 3,310,671.02 - SC Finance Ireland 2,462,655.32 2,462,655.32 - SC Opera 56,083,500.00 56,728,109.69 644,609.69 SC Finnjet 18,694,500.00 20,260,748.08 1,566,248.08 SC Treasury - 10,463,000.00 10,463,000.00 SCL Activities (34,574.14) (38,450.90) (3,876.76) ------------------- --------------------- ----------------- 558,575,197.58 598,205,531.34 39,630,333.76 =================== ===================== ================= 17
Intercompany Balances Sea Containers Services Ltd. - -------------------------------------------------- Intercompany Balances As At October 31, 2006 September 30, 2006 Movement 1.90 0.00 1.90 (GBP) $ (GBP) $ (GBP) $ Receivable SC British Isles 23,789,377.93 45199818.07 23,789,377.93 0 - 0 Ferry & Port Holdings 22,053,474.25 41901601.08 21,970,654.05 0 82,820.20 157,358.38 ILN 6,463,699.67 12281029.37 6,190,864.95 0 272,835.72 516,385.97 YMCL 4,796,803.08 9113925.85 4,744,055.92 0 52,747.16 100,219.60 Hart Fenton 1,061,869.16 2017551.40 994,024.37 0 67,844.79 128,905.10 SC Asia pte 546,642.73 1038621.19 541,642.73 0 5,000.00 9,500.00 Pariandros 463,861.20 881336.28 461,609.80 0 12,251.40 23,277.66 Newhaven Marina 192,714.13 366156.85 192,714.13 0 (0.00) (0.00) SC House Management 101,949.08 193703.25 85,949.08 0 16,000.00 30,400.00 SC America Inc 29,111.61 55312.06 29,111.61 0 - - Brasiluvas 8,333.00 15832.70 - 0 8,333.00 15,832.70 GE SeaCo - 0.00 2,081.03 Eops - 0.00 833.06 Insurance Premiums to be 691,924.52 1314656.59 645,031.57 0 46,892.95 89,096.61 recharged ------------------------------------------------------------------------------------------- 60,199,760.36 114,379,544.68 59,637,950.23 - 564,724.22 1,072,976.02 ------------------------------------------------------------------------------------------- Payables SCL (40,734,104.92) -77394799.35 (33,537,951.57) 0 (7,196,153.35) (13,672,691.37) SC Property Services (1,441,741,61) -2739309.06 (1,480,351.49) - 38,609.88 73,358.77 Fairways & Swinford (86,552.40) -164392.56 (127,798.91) 0 41,276.51 78,425.37 SC Associates Inc. (0.01) -0.02 - 0 (0.01) (0.02) ------------------------------------------------------------------------------------------- (42,262,368.94) (80,298,500.99) (35,146,101.97) - (7,116,266.97) (13,520,907.24) ------------------------------------------------------------------------------------------- Net 17,937,391.42 34,081,043.70 24,491,848.26 - (6,551,542.75) (12,447,921.23) 18
TAX PAYMENT ATTESTATION - ----------------------- Taxes - ----- Pursuant to the Exempted Undertakings Tax Protection Act (Bermuda) 1966, Sea Containers Ltd., a company incorporated under the laws of Bermuda, is not subject to any tax on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance. Sea Containers Services Ltd. has paid post-petition tax payments as due. Payroll Taxes Withheld and Paid - ------------------------------- All payroll taxes of Sea Containers Services Ltd. have been fully paid for the period covered by this report. STATEMENT REGARDING INSURANCE POLICIES - -------------------------------------- All insurance policies for the Debtors have been fully paid for the period covered by this report, including workers compensation and disability insurance. 19
Sea Containers Limited Reporting Date October 31, 2006 ------------------------------------------ - ---------------------------------------------------------------------------------------------------------------------- Accounts Receivable Reconciliation and Aging - ---------------------------------------------------------------------------------------------------------------------- $ Total Accounts receivable at the beginning of the reporting period 3,012,892.45 Add Amounts billed during the period 1,167,485.76 Less Amounts collected during the period (764,334.30) Other movements (445,298.45) ------------------ Total accounts receivable at the end of the reporting period 2,970,745.46 ------------------ - ----------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------- Accounts Receivable Ageing - ---------------------------------------------------------------------------------------------------------------------- 0 - 30 days old 363,573.09 31 - 60 days old 1,263,580.22 61 - 90 days old 413,064.21 91 + days old 930,527.94 Total accounts receivable 2,970,745.46 Amounts considered uncollectible (net) (1,773,627.72) Accounts receivable net 1,197,117.74 - ---------------------------------------------------------------------------------------------------------------------- 118
Sea Containers Services Ltd Reporting Date October 31, 2006 ------------------------------------------ - ---------------------------------------------------------------------------------------------------------------------- Accounts Receivable Reconciliation and Aging - ---------------------------------------------------------------------------------------------------------------------- $ Total Accounts receivable at the beginning of the reporting period 878,582.27 Add Amounts billed during the period 321,582.58 Less Amounts collected during the period (739,093.37) Other movements (foreign exchange) 14,094.52 ------------------ Total accounts receivable at the end of the reporting period 476,166.00 ------------------ - ----------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------- Accounts Receivable Ageing - ---------------------------------------------------------------------------------------------------------------------- 0 - 30 days old 475,166.00 31 - 60 days old - 61 - 90 days old - 91 + days old - Total accounts receivable 475,166.00 Amounts considered uncollectible (net) - Accounts receivable net 475,166.00 - ---------------------------------------------------------------------------------------------------------------------- 21
DEBTORS QUESTIONNAIRE - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- Must be completed each month Yes No - -------------------------------------------------------------------------- ---------------------- -------------------- 1. Have any assets been sold or transferred outside normal course of X business this reporting period? If yes, an explanation below. - -------------------------------------------------------------------------- ---------------------- -------------------- 2. Have any funds been disbursed from any account other than a debtor in X possession account this reporting period? If yes, provide an explanation below. - -------------------------------------------------------------------------- ---------------------- -------------------- 3. Have all post petition tax returns been timely filed? If no, provide X an explanation below. - -------------------------------------------------------------------------- ---------------------- -------------------- 4. Are workers compensation, general liability and other necessary X insurance coverage's in effect? If no, provide an explanation below. - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- - -------------------------------------------------------------------------- ---------------------- -------------------- 22
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