EX-99.3 7 a07-15652_5ex99d3.htm EX-99.3

Exhibit 99.3

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE

In re: Sea Containers Ltd., et al

Case No.

06-11156 (KJC)

 

Reporting Period:

June 1, 2007 - June 30, 2007

 

MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month**

Submit copy of report to any official committee appointed in the case.

 

REQUIRED DOCUMENTS

 

Form
No.

 

Document
Attached

 

Explanation
Attached

Schedule of Cash Receipts and Disbursements

 

MOR-1

 

X

 

 

Bank Reconciliation (or copies of debtor’s bank reconciliations)

 

MOR-1 (CON’T)

 

 

 

 

Copies of bank statements

 

 

 

 

 

 

Cash disbursements journals

 

 

 

 

 

 

Statement of Operations

 

MOR-2

 

X

 

 

Balance Sheet

 

MOR-3

 

X

 

 

Status of Postpetition Taxes

 

MOR-4

 

 

 

 

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 accounts 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 and correct to the best of my knowledge and belief.

 

 

 

 

 

 

Signature of Debtor

 

Date

 

 

 

 

 

 

 

 

 

Signature of Joint Debtor

 

Date

 

 

 

 

 

 

 

 

 

Signature of Authorized Individual*

 

Date 31/7/2007

(on behalf of Sea Contianers Ltd)

 

 

 

 

 

 

 

 

/s/ Laura Barlow

 

Title of Authorized Individual

Printed Name of Authorized Individual

 

Chief Financial Officer

Laura Barlow

 

 

 

 

 

 

 

 

Signature of Authorized Individual*

 

Date 31/7/2007

(on behalf of Sea Container Services Limited)

 

 

 

 

 

 

 

 

 

 

 

/s/ Laura Barlow

 

Title of Authorized Individual

Printed Name of Authorized Individual

 

Chief Financial Officer

Laura Barlow

 

 


*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

**As agreed with the US Trustee office, MORs will be filed the 30th after each Month                                   FORM MOR

(9/99)            




SEA CONTAINERS LTD., et al.
INDEX TO MONTHLY OPERATING REPORT

Description

 

 

 

Pages

 

 

 

General Notes to Monthly Operating Report

 

1-2

 

 

 

Schedule of Cash Receipts and Disbursements for Sea Containers Ltd. listing bank account details with month end period balances

 

3-4

 

 

 

Schedule of 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.

 

7-11

 

 

 

Balance Sheet and Statement of Operations for Sea Containers Services Ltd

 

12-15

 

 

 

Balance Sheet for Sea Containers Caribbean Inc.

 

16-17

 

 

 

Schedule of Intercompany Activity for Sea Containers Ltd.

 

18-19

 

 

 

Schedule of Intercompany Activity for Sea Containers Services Ltd.

 

20

 

 

 

Tax Attestation

 

21

 

 

 

Statement Regarding Insurance Policies

 

21

 

 

 

Schedule of Accounts Receivable and Aging for Sea Containers Ltd

 

22

 

 

 

Schedule of Accounts Receivable and Aging for Sea Containers Services Ltd

 

23

 

 

 

Schedule of Post-Petition Aged Creditors for Sea Containers Ltd

 

24

 

 

 

Schedule of Post-Petition Aged Creditors for Sea Containers Services Ltd

 

25

 

 

 

Debtors Questionnaire

 

26

 




 

SEA CONTAINERS LTD., et al

MONTHLY OPERATING REPORT, JUNE 2007

NOTES TO MONTHLY OPERATING REPORT

General

For financial reporting purposes, Sea Containers Ltd. prepares consolidated financial statements relating to Sea Containers Ltd. and its affiliates and subsidiaries (the “Sea Containers Group”) that are filed with the Securities and Exchange 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.  In particular, management wishes to highlight note three on page seven and note two on page ten.  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 represent the company’s internal accounting, on an unaudited and uncertified basis.  As of July 31, 2007, 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 31, 2006.  The certification and audit process may result in adjustments to the stated assets and liabilities.

Chapter 11 Reorganization Proceedings

On October 15, 2006 (the “Petition Date”), Sea Containers Ltd. (“SCL”), Sea Containers Services Ltd. (“Services”) and Sea Containers Caribbean Inc. (“SCCI”) (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 for SCL (the “SCL Committee”) and an official committee of unsecured creditors has been appointed for Services (the “Services 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 Bankruptcy Court, the Debtors are prohibited from paying pre-petition 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 transactions 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:

·                  Consolidating Schedule of Cash Receipts and Disbursements by Debtor.

·                  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.

·                  Balance Sheets for Each Debtor.

·                  Schedules of the intercompany activity.

·                  Income Statements for each Debtor.(1)

·                  Schedule of Post-Petition fiduciary taxes — Provide Attestation that all taxes are current.

·                  Schedule of Unpaid Post-Petition Debts.

·                  Schedule of Accounts Receivable and Aging.

·                  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




 

 

In Re: Sea Containers Limited

 

 

 

 

 

 

 

Cash No:

 

06-1156 (KJC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reporting Dates: June 1 - June 30, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Cash Receipts and Disbursements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commerce

 

 

 

 

 

 

 

 

 

 

 

Bank of

 

Bank of

 

Bank of

 

Bank of

 

 

 

JP Morgan

 

JP Morgan

 

Bank

 

JP Morgan

 

JP Morgan

 

JP Morgan

 

NatWEst

 

Barclays

 

America

 

America

 

Scotland

 

Scotland

 

 

 

A/C 704

 

A/C 702

 

A/C 353

 

A/C 501

 

A/C NY705

 

A/C 382

 

A/C 886

 

A/C399

 

A/C 015

 

A/C 023

 

A/C USD01

 

A/C 242

 

Cash beginning of month

 

53,264

 

3,731

 

23,244,984

 

148,958

 

17,299

 

6,047

 

0

 

25

 

294,628

 

206,398

 

1,500

 

1,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receipts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chassis Rental

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of ships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Exchange Revaluation

 

(24,089

)

 

 

 

 

(361

)

 

 

 

 

 

 

 

 

25,126

 

7,075

 

 

 

 

 

Interest Income

 

644

 

 

 

85,001

 

371

 

 

 

 

 

 

 

 

 

84

 

 

 

12

 

43

 

Sweep from SCS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(248,700

)

 

 

 

 

 

 

Intra company sweep

 

56,215

 

1,625,251

 

(2,200,144

)

(385,468

)

(390,000

)

 

 

 

 

 

 

726,530

 

547,472

 

 

 

 

 

Income received from Ge Seaco

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Container Rental

 

 

 

40,472

 

 

 

251,921

 

399,834

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Receipts

 

32,770

 

1,665,723

 

(2,115,143

)

(133,537

)

9,834

 

0

 

0

 

0

 

503,040

 

554,547

 

12

 

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disbursements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Payroll

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales Use & Other Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory Purchases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured/Rental/Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S, G & A costs

 

645

 

1,188,052

 

1,460,481

 

131

 

 

 

 

 

 

 

 

 

38

 

405,535

 

 

 

 

 

Selling

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (Attach List)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contra

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sweep to SCS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfers (To DIP Accts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intra company sweep

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Trustee Quarterly Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SC Treasury funding

 

 

 

450,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Court Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Disbursements

 

645

 

1,638,052

 

1,460,481

 

131

 

0

 

0

 

0

 

0

 

38

 

405,535

 

0

 

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow (Receipts Less Disbursements)

 

32,125

 

27,671

 

(3,575,624

)

(133,668

)

9,834

 

0

 

0

 

0

 

503,002

 

149,012

 

12

 

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash End of Month

 

85,389

 

31,402

 

19,669,360

 

15,290

 

27,133

 

6,047

 

0

 

25

 

797,630

 

355,410

 

1,512

 

1,279

 

 

3




 

In Re: Sea Containers Limited

 

 

 

 

 

Cash No:

 

06-1156 (KJC)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reporting Dates: June 1 - June 30, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Cash Receipts and Disbursements Continued

 

 

 

 

 

 

 

 

Bank of

 

Societe

 

Societe

 

Commerce

 

JPMC

 

 

 

Bank of

 

Bank of

 

Barclays

 

 

 

 

 

Scotland

 

Generale

 

Generale

 

Bank

 

SCL Deposit

 

HSBC

 

Bermuda

 

Bermuda

 

Bank

 

Current Month

 

 

 

A/C 001

 

A/C N/A

 

A/C 032

 

A/C 282

 

A./C 706

 

A/C 298.2

 

A/C 16501

 

A/C 16001

 

A/C INS & TEE

 

Actual

 

Cash beginning of month

 

0

 

205,734

 

2,880

 

(71

)

32,038

 

156,050

 

3,967

 

2,512

 

490,000

 

24,871,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receipts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Cash Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Accounts Receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Chassis Rental

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Sale of ships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Exchange Revaluation

 

 

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

12,500

 

20,293

 

Interest Income

 

 

 

1,498

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

87,663

 

Sweep from SCS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(248,700

)

Intra company sweep

 

 

 

20,000

 

 

 

144

 

 

 

 

 

 

 

 

 

 

 

0

 

Income received from Ge Seaco

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Container Rental

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

692,227

 

Total Receipts

 

0

 

21,498

 

52

 

144

 

0

 

0

 

0

 

0

 

12,500

 

551,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disbursements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Payroll

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Loan interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Sales Use & Other Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Inventory Purchases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Secured/Rental/Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

S, G & A costs

 

 

 

 

 

 

 

73

 

 

 

 

 

 

 

171

 

 

 

3,055,126

 

Selling

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Other (Attach List)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Contra

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Sweep to SCS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Transfers (To DIP Accts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Intra company sweep

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Professional Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

U.S. Trustee Quarterly Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

SC Treasury funding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

450,000

 

Court Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Total Disbursements

 

0

 

0

 

0

 

73

 

0

 

0

 

0

 

171

 

0

 

3,505,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow (Receipts Less Disbursements)

 

0

 

21,498

 

52

 

71

 

0

 

0

 

0

 

(171

)

12,500

 

(2,953,643

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash End of Month

 

0

 

227,232

 

2,932

 

0

 

32,038

 

156,050

 

3,967

 

2,341

 

502,500

 

21,917,537

 

 

 

 

 

 

 

 

The Following Section Must Be Completed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disbursements For Calculating U.S. Trustee Quarterly Fees (From Current Month Actual Column)

 

 

 

 

 

 

 

 

 

Total Disbursements

 

 

 

 

 

 

 

 

 

3,505,126

 

 

 

 

Less: Transfers to Debtor In Possession Accounts

 

 

 

 

 

 

 

0

 

 

 

 

 

Less: Disbursements made by Sea Containers Ltd on behalf of Sea Containers Services Ltd

 

 

 

(10,346

)

 

 

 

Plus: Estate Disbursements Made By Outside Sources (i.e. From Escrow Accounts)

 

 

 

0

 

 

 

 

 

Total Disbursements For Calculating U.S. Trustee Quarterly Fees

 

 

 

3,494,780

 

 

4




 

In Re: Sea Containers Services

 

Cash No:

 

06-11156 (KJC)

 

 

Reporting Dates:

 

June 1 to June 30, 2007

 

 

Schedule of Cash Receipts and Disbursements in $USD

£ > $ $2.01

 

(Conversion rate: £ = $2.01)

 

 

 

NatWest
PLC

 

Barclays
Bank

 

Bank
of America

 

Bank
of Scotland

 

Commerce
Bank

 

 

 

Current
Month

 

 

 

A/C # 420

 

A/C 724

 

A/C 013

 

A/C 234

 

A/C 131

 

 

 

Actual

 

Cash beginning of month

 

0

 

0

 

(34,746

)

3,763

 

50,000

 

0

 

19,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receipts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange

 

 

 

 

 

6,260

 

72

 

 

 

 

 

6,331

 

Accounts Receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Interest receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Depoit repaid

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Funding From SCL

 

 

 

 

 

248,700

 

 

 

 

 

 

 

248,700

 

Other (attach list)

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Tax refund

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Total Receipts

 

0

 

0

 

254,960

 

72

 

0

 

0

 

255,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disbursements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Payroll

 

 

 

 

 

989,398

 

 

 

 

 

 

 

989,398

 

Payroll Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Rates

 

 

 

 

 

143,924

 

 

 

 

 

 

 

143,924

 

Inventory Purchases

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Secured/Rental/Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Pension

 

 

 

 

 

(5,797

)

 

 

 

 

 

 

(5,797

)

Administrative

 

 

 

 

 

(828,088

)

 

 

 

 

 

 

(828,088

)

Selling

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Rent

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Other (Attach List)

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Owner Draw *

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Transfers (To DIP Accts)

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Sweep to SCL

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Professional Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

U.S. Trustee Quarterly Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Court Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

Total Disbursements

 

0

 

0

 

299,438

 

0

 

0

 

0

 

299,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow (Receipts Less
Disbursements)

 

0

 

0

 

(44,478

)

72

 

0

 

0

 

(44,406

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash End of Month

 

0

 

0

 

(79,224

)

3,835

 

50,000

 

0

 

(25,389

)

 

The Following Section Must Be Completed

 

Disbursements For Calculating U.S. Trustee Quarterly Fees (From Current Month Actual Column)

 

 

 

Total Disbursements

 

299,438

 

Less: Transfers To Debtor In Possession Accounts

 

0

 

Add: Disbursements made by Sea Containers Ltd on behalf of Sea Containers Services Ltd

 

10,346

 

Total Disbursements For Calculating U.S. Trustee Quarterly Fees

 

309,784

 

 

Reconciliation books to ledger

 

 

 

USD $0

 

Cash in bank at the end of the month

 

(25,389.00

)

Petty Cash

 

7,302.00

 

Foreign Translation adjustment on Commerce Bank $50,000

 

(1.00

)

Balance per Sea Containers Services Financials 30 June 2007

 

(18,088.00

)

 

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 LTD
BALANCE SHEET

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

June 30,

 

October 15,

 

 

 

Note

 

2007

 

2006

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

21,917,537

 

$

50,100,986

 

Trade receivables - less allowances for doubtful accounts
of $1.516 million

 

 

 

 

1,955,441

 

Due from related parties

 

(4)

 

7,887,164

 

13,481,857

 

Prepaid expenses and other current assets

 

 

 

1,816,838

 

1,718,439

 

Total current assets

 

 

 

31,621,539

 

67,256,723

 

 

 

 

 

 

 

 

 

Fixed assets, net

 

(5)

 

 

 

 

 

 

 

 

 

 

 

Long-term equipment sales receivable, net

 

(5)

 

 

 

Investment in group companies

 

(2)

 

 

 

Intercompany receivables

 

(3)

 

 

 

Investment in equity ownership interests

 

(6)

 

221,500,710

 

197,742,498

 

Other assets

 

(7)

 

2,851,462

 

3,424,161

 

Total assets

 

(1)

 

$

255,973,711

 

$

268,423,382

 


(1) Sea Containers Ltd does not produce Company only accounts. This statement of assets represents Sea Containers Group’s internal accounting, on an unaudited and uncertified basis. As of June 30, 2007, 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, September 30, 2006, December 31, 2006, March 31, 2007 and June 30, 2007.  In order to facilitate the preparation of Sea Containers Ltd’s October 15, 2006 balance sheet, it was necessary to make certain assumption and estimates. The certification and audit process at December 31, 2006 year end may result in adjustments to the above stated assets. The foreign exchange rates used to translate June 30, 2007 and May 31, 2007 and October 15, 2006 were $2.01, $1.99 and $1.87 respectively.

(2) As the parent Company 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. Sea Containers Ltd is presently undergoing an exercise to ascertain the value contained within its subsidiaries that will become available to Sea Containers Ltd. Management’s current view is that this investment is significantly impaired; therefore, whilst this exercise is underway, Sea Containers Ltd feels it appropriate to make full provision against the investment in subsidiaries.

(3) The Sea Containers Group has a highly complex intercompany matrix that involves a large number of amounts receivable and payable. These are held as gross figures within the individual company accounting records but are netted off for the purposes of external presentation. Sea Containers Ltd is in the process of evaluating all intercompany receivables and payables as part of its exercise to ascertain value held in subsidiary companies. Sea Containers Ltd has a net intercompany receivable from its direct and indirect subsidiaries of $651,780,595. This represents a gross intercompany receivable of $1,864,208,611 and a gross intercompany payable of $1,212,428,016. Full provision has been made against this net amount whilst the exercise to ascertain value is underway. It is possible that individual subsidiaries may have a claim against Sea Containers Ltd and the netting off exercise in Sea Containers Ltd’s accounts is not prejudicial to any such claim that a subsidiary may have.

Since January 2007 Sea Containers Ltd has included adjustments to its inter company balances that arose as a result of UK statutory reporting requirements. This resulted in changes to certain inter company balances previously stated on the detailed inter company schedule. These changes did not impact on the Sea Containers Ltd balance sheet, due the company’s policy to fully provide against its net inter company balances and therefore Sea Containers Ltd has not restated its previously filed monthly operating reports.

(4) The amounts due from related parties largely consist of amounts due from GE SeaCo. These represent the anticipated recovery from GE SeaCo on completion of an expected set-off agreement. The recoverability of this amount may be affected by the asserted claim discussed in note 6.

(5) Fixed assets and long-term equipment sales receivable relate to containers. On October 3, 2006, SCL transferred the majority of these containers to a Special Purpose Company wholly owned by SCL 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.

 

7




 

(6) This balance consists of the carrying value of SCL’s investment in GE SeaCo and reflects GE SeaCo’s year end financial statement for the year ended December 31, 2006, reported results for Q1 2007 (as to which certain adjustments have been made, as described below) and forecast results for Quarter 2, 2007.

GE SeaCo has recently asserted claims against Sea Containers SPC Ltd and SCL in the amount of approximately $18m.  The asserted claim is in relation to the Equipment Management Agreement (“EMA”) under which GE SeaCo manages certain of the company’s containers, subject to the EMA.  The validity and accuracy of the claim has yet to be assessed.  GE SeaCo has withheld and has indicated it will continue to withhold monies that would otherwise have been payable to Sea Containers SPC Ltd. under the EMA until it has retained the full amount that is claimed to be due to GE SeaCo.  GE SeaCo has also reserved its rights to claim directly against SCL. SCL has not accepted the claim because it requires extensive investigation before the merits, if any, can be determined. The Q1 2007 results, as reported by GE SeaCo have, therefore, been adjusted to exclude the financial impact of the claim before inclusion in financial statements. Had the claim been accepted, SCL’s share of the GE SeaCo adjusted revenue would have increased by $6,718,000, and SCL would have reported an increase in its investment in GE SeaCo by the same amount. Additionally, for reasons set out above, Sea Containers Ltd has not recorded a liability to GE SeaCo in respect of this claim.

(7) $2,851,462 of the Other Assets balance represent the unamortized part of capitalised finance costs in relation to certain of Sea Containers Ltd’s senior loan notes that were outstanding at June 30, 2007. The loan notes will be amortised up to maturity (between March 2008 and June 2012) at a monthly rate of some $75,000.  If the loan notes, which are disclosed as being due in less than one year, are repaid then the balance of the unamortized capitalised finance costs will be expensed to the Statement of Operations.

 

8




 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

June 30,

 

October 15,

 

 

 

Note

 

2007

 

2006

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

 

 

$

1,811,626

 

$

3,372,476

 

Accrued expenses

 

 

 

51,316,736

 

22,843,429

 

Current portion of long-term debt

 

(11)

 

25,855,028

 

25,926,107

 

Current portion of senior notes

 

 

 

385,266,750

 

384,938,936

 

Total current liabilities

 

 

 

464,250,140

 

437,080,948

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

(10)

 

(208,276,429

)

(168,657,566

)

Total liabilities and shareholders’ equity

 

(8), (9), (12)

 

$

255,973,711

 

$

268,423,382

 


(8) Sea Containers Ltd does not produce Company only accounts. This statement of assets represents Sea Containers Group’s internal accounting, on an unaudited and uncertified basis. As of June 30, 2007, 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, September 30, 2006, December 31, 2006, March 31, 2007 and June 30, 2007.  In order to facilitate the preparation of Sea Containers Ltd’s October 15, 2006 balance sheet, it was necessary to make certain assumption and estimates. The certification and audit process at December 31, 2006 year end may result in adjustments to the above stated assets. The foreign exchange rates used to translate June 30, 2007 and May 31, 2007 and October 15, 2006 were $2.01, $1.99 and $1.87 respectively.

(9) The Determinations Panel of 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 published notices of its decision that a Financial Support Direction (FSD) will be issued against Sea Containers Ltd. under Section 43 of the Pensions Act 2004 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”). The hearing before the Determination Panel took place on 12 and 13 June 2007 to consider the warning notices issued by the Regulator in October 2006 and April 2007 in respect of the two Pension Schemes.

On July 24, 2007, Sea Containers Ltd announced that it had lodged an appeal in respect of the Determination Notices issued by the Determinations Panel of the Pension Regulator on June 15, 2007. The appeal contests the Panel’s decision that FSDs should be issued against Sea Containers Ltd under section 43 of the Pensions Act 2004 in respect of the two Pension Schemes. It has always been Sea Containers Ltd’s expectation that any restructuring plan of reorganization proposed under the Chapter 11 bankruptcy protection process would be subject to the Pensions Regulator’s Clearance procedure.

The Schemes are multi-employer defined benefit pension plans of Sea Containers Services Ltd., a UK indirect subsidiary of Sea Containers Ltd. If FSDs are issued against Sea Containers Ltd, it may be liable to make a financial contribution to one or both of the Schemes, most likely in the form of a stipulated unsecured claim against Sea Containers Ltd, which will rank pari passu with other unsecured creditors. This direct unsecured claim may exceed any claim which could have been brought by Sea Containers Services Ltd under the terms of a support agreement between Sea Containers Ltd and Sea Containers Services Ltd. entered into in 1989 under which the UK subsidiary provides administrative services to the Sea Containers Group 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 £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 £27 million ($51 million) for the 1990 Scheme. These values are subject to revision and because the Schemes are multi-employer plans, the liabilities under them are shared among the participating companies. The FSD notices published only cover the pension liabilities related to the employer Sea Containers Services Limited of £73.7 million ($147 million) for the 1983 Scheme and £17.6 million ($35 million) for the 1990 Scheme.

On July 9, 2007 the Pensions Regulator notified the Company that it was considering commencing further financial support proceedings against Sea Containers Ltd, with regards to other participating employers in the 1983 Scheme and 1990 Scheme. It is the Company’s intention that such proceedings, if they are brought, will be defended.

Prior to the Claims Bar Date, the Trustees of the Schemes filed claims on behalf of the 1983 Scheme and the 1990 scheme. These are higher than the amounts previously notified to the Company and described above, and the Company is analysing these claims as part of the ongoing Claims Review Process.

 

9




 

(10) Shareholders’ Equity is calculated after all adjustments that have been noted in notes (1) to (10) 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.

(11) The Current portion of long term debt consists of loans from Trilogy Portfolio LLC, for a ship acquisition and Silverpoint, who made certain payments on behalf of Sea Containers Ltd to shareholders of another company.

On July 24, 2007 Sea Containers Ltd closed its Debtor in Possession (“DIP”) loan facility of $145 million, having obtained Court approval on June 26. The Company entered into the facility to repay existing indebtedness of its subsidiary, Sea Containers SPC Ltd (“SPC”), thereby avoiding a foreclosure by the lenders to SPC and preserving value in its container fleet and control over these assets. The DIP facility also provides a $25 million revolving credit facility for working capital purposes for the duration of the Chapter 11 case.

(12) As a result of the Claims Bar Date on July 16, 2007, numerous parties including GE and GE SeaCo have filed proofs of claims in the bankruptcy cases. The Debtors currently are in the process of evaluating these proofs of claim and the claims asserted therein, including GE SeaCo’s EMA-related claim discussed above. The MOR does not reflect any analysis of, nor does it incorporate, such proofs of claim or the claims asserted therein.

10




SEA CONTAINERS LTD

STATEMENT OF OPERATIONS

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

One Month Ended

 

For the period Oct 16

 

 

 

 

Note

 

 

June 30, 2007

 

to June 30, 2007

 

Revenue

 

(14)

 

$

2,844,000

 

$

24,159,663

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

Operating income

 

 

 

27,199

 

1,181,871

 

Selling, general and administrative expenses

 

 

 

(2,770,759

)

(35,051,462

)

Professional fees

 

(16)

 

(427,740

)

(11,707,945

)

Charges to provide against intercompany accounts

 

(15)

 

2,584,215

 

18,371,403

 

Depreciation & amortization

 

 

 

 

(58,677

)

Total costs and expenses

 

 

 

(587,085

)

(27,264,810

)

Gain or (Loss) on sale of assets

 

 

 

30,000

 

227,920

 

 

 

 

 

 

 

 

 

Operating income / (loss)

 

 

 

2,286,915

 

(2,877,227

)

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

Interest income

 

 

 

82,868

 

1,696,628

 

Foreign exchange gains or (losses)

 

 

 

16,942

 

(306,361

)

Interest expense, net of capitalized interest

 

 

 

(3,135,944

)

(29,459,212

)

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

(749,219

)

(30,946,172

)

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

(100,000

)

(851,614

)

 

 

 

 

 

 

 

 

Net loss

 

(13)

 

$

(849,219

)

$

(31,797,786

)


(13)  Sea Containers Ltd does not produce Company only accounts. This statement of assets represents Sea Containers Group’s internal accounting, on an unaud ited and uncertified basis. As of June 30, 2007, 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, September 30, 2006, December 31, 2006, March 31, 2007 and June 30, 2007.  In order to facilitate the preparation of Sea Containers Ltd’s October 15, 2006 balance sheet, it was necessary to make certain assumption and estimates. The certification and audit process at December 31, 2006 year end may result in adjustments to the above stated assets. The foreign exchange rates used to translate June 30, 2007 and May 31, 2007 and October 15, 2006 were $2.01, $1.99 and $1.87 respectively.

(14)  Revenue includes $2,216,000 in respect of Sea Containers Ltd’s equity interest in GE SeaCo.

(15)  Sea Containers Ltd’s policy prior to the bankruptcy filing date was to make provisions for the net receivable due from Sea Containers Ltd Group’s subsidiary companies. The change in the month above, relates to decreases in the net receivable balance due from group companies in the month, which have been impaired in accordance with note 3.

(16)  As at June 30, 2007 professional fees totalling $11,707,945 have been expensed. Such costs are not included until they have been approved by the Court. The allocation of professional fees between Sea Containers Ltd and Sea Containers Services Limited is under review.

11




 

SEA CONTAINERS SERVICES

BALANCE SHEET

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

June 30,

 

October 15,

 

 

 

 

Note

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

(18,088

)

$

274,533

 

Trade receivables

 

 

 

23,332

 

419,162

 

Due from related parties (GE SeaCo)

 

 

 

5,288,953

 

4,805,049

 

Prepaid expenses and other current assets

 

(3)

 

5,860,975

 

14,242,003

 

Total current assets

 

 

 

11,155,172

 

19,740,747

 

 

 

 

 

 

 

 

 

Fixed assets, net

 

 

 

2,591,250

 

3,410,461

 

 

 

 

 

 

 

 

 

Investments

 

 

 

2,704,278

 

2,515,920

 

Intercompany receivables

 

(2)

 

45,681,103

 

29,746,215

 

Other assets

 

(3)

 

3,738,600

 

14,975

 

Total assets

 

(1)

 

$

65,870,403

 

$

55,428,318

 


(1)  This statement of assets reflects Sea Containers Group’s internal accounting, on an unaudited and uncertified basis. As of June 30, 2007, 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, September 30, 2006, December 31, 2006, March 31, 2007 and June 30, 2007.  In order to facilitate the preparation of Sea Containers Ltd and Sea Container Services Limited’s October 15, 2006 balance sheet, it was necessary to make certain assumption and estimates. The certification and audit process for Sea Container Services Limited at December 31, 2005 and December 31, 2006 year ends may result in adjustments to the above stated assets. The foreign exchange rates used to translate June 30, 2007, May 31, 2007 and October 15, 2006 were $2.01, $1.99 and $1.87 respectively.

(2)  Sea Containers Services Ltd. has net intercompany receivables of $45,681,103. This represents gross intercompany receivables of $117,772,157 and gross intercompany payables of $72,091,054. 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.

(3)  A deferred tax asset has been recognised which relates to timing differences in claiming capital allowances. The current portion of $1,196,000 is held in prepaid expenses and the long term portion of $3,720,000 is held in Other assets.

As part of the 2005 audit of Sea Container Services Limited and a review of the allocation of professional fees, the carrying value of the deferred tax asset is under review.

12




 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

June 30,

 

October 15,

 

 

 

 

Note

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

 

 

$

2,547,530

 

$

1,198,421

 

Accrued expenses

 

 

 

2,559,074

 

5,736,956

 

Current portion of long-term debt

 

 

 

1,681,003

 

1,807,527

 

Total current liabilities

 

 

 

6,787,607

 

8,742,904

 

 

 

 

 

 

 

 

 

Total shareholders’ equity

 

 

 

59,082,796

 

46,685,414

 

Total liabilities and shareholders’ equity

 

(4), (5), (6)

 

$

65,870,403

 

$

55,428,318

 


(4)  This statement of assets reflects Sea Containers Group’s internal accounting, on an unaudited and uncertified basis. As of June 30, 2007, 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, September 30, 2006, December 31, 2006, March 31, 2007 and June 30, 2007.  In order to facilitate the preparation of Sea Containers Ltd and Sea Container Services Limited’s October 15, 2006 balance sheet, it was necessary to make certain assumption and estimates. The certification and audit process for Sea Container Services Limited at December 31, 2005 and December 31, 2006 year ends may result in adjustments to the above stated assets. The foreign exchange rates used to translate June 30, 2007, May 31, 2007 and October 15, 2006 were $2.01, $1.99 and $1.87 respectively.

(5)  The Determinations Panel of 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 published notices of its decision that a Financial Support Direction (FSD) will be issued against Sea Containers Ltd. under Section 43 of the Pensions Act 2004 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”). The hearing before the Determination Panel took place on 12 and 13 June 2007 to consider the warning notices issued by the Regulator in October 2006 and April 2007 in respect of the two Pension Schemes.

On July 24, 2007, Sea Containers Ltd announced that it had lodged an appeal in respect of the Determination Notices issued by the Determinations Panel of the Pension Regulator on June 15, 2007. The appeal contests the Panel’s decision that FSDs should be issued against Sea Containers Ltd under section 43 of the Pensions Act 2004 in respect of the two Pension Schemes. It has always been Sea Containers Ltd’s expectation that any restructuring plan of reorganization proposed under the Chapter 11 bankruptcy protection process would be subject to the Pensions Regulator’s Clearance procedure

The Schemes are multi-employer defined benefit pension plans of Sea Containers Services Ltd., a UK indirect subsidiary of Sea Containers Ltd. If FSDs are issued against Sea Containers Ltd, it may be liable to make a financial contribution to one or both of the Schemes, most likely in the form of a stipulated unsecured claim against Sea Containers Ltd, which will rank pari passu with other unsecured creditors. This direct unsecured claim may exceed any claim which could have been brought by Sea Containers Services Ltd under the terms of a support agreement between Sea Containers Ltd and Sea Containers Services Ltd. entered into in 1989 under which the UK subsidiary provides administrative services to the Sea Containers Group 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 £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 £27 million ($51 million) for the 1990 Scheme. These values are subject to revision and because the Schemes are multi-employer plans, the liabilities under them are shared among the participating companies. The FSD notices published only cover the pension liabilities related to the employer Sea Containers Services Limited of £73.7 million ($147 million) for the 1983 Scheme and £17.6 million ($35 million) for the 1990 Scheme.

13




 

On July 9, 2007 the Pensions Regulator notified the Company that it was considering commencing further financial support proceedings against Sea Containers Ltd, with regards to other participating employers in the 1983 Scheme and 1990 Scheme. It is the Company’s intention that such proceedings, if they are brought, will be defended.

Prior to the Claims Bar Date, the Trustees of the Schemes filed claims on behalf of the 1983 Scheme and the 1990 scheme. These are higher than the amounts previously notified to the Company and described above, and the Company is analysing these claims as part of the ongoing Claims Review Process.

(6) As a result of the Claims Bar Date on July 16, 2007, numerous parties including GE and GE SeaCo have filed proofs of claims in the bankruptcy cases. The Debtors currently are in the process of evaluating these proofs of claim and the claims asserted therein, including GE SeaCo’s EMA-related claim discussed above. The MOR does not reflect any analysis of, nor does it incorporate, such proofs of claim or the claims asserted therein.

14




 

SEA CONTAINERS SERVICES

STATEMENT OF OPERATIONS

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

One Month Ended

 

Period October 16, 2006

 

 

 

 

Note

 

 

June 30, 2007

 

to June 30, 2007

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

$

2,511,839

 

$

30,677,119

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

 

(1,799,312

)

(26,902,866

)

Professional fees (formerly Reorganisation costs)

 

(8)

 

(364,256

)

(726,038

)

Depreciation & amortization

 

 

 

(106,719

)

(949,752

)

Total costs and expenses

 

 

 

(2,270,287

)

(28,578,656

)

 

 

 

 

 

 

 

 

Gains on sale of assets

 

 

 

—   

 

30,423

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

241,552

 

2,128,886

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

Interest income

 

 

 

34

 

8,785

 

Foreign exchange gains or (losses)

 

 

 

(1,302

)

(135,591

)

Interest expense, net of capitalized interest

 

 

 

(13,815

)

(146,292

)

 

 

 

 

 

 

 

 

Income before taxes

 

 

 

226,469

 

1,855,788

 

Income tax credit

 

(9)

 

 

7,504,714

 

Net income

 

(7)

 

$

226,468

 

$

9,360,503

 


(7)  This statement of assets reflects Sea Containers Group’s internal accounting, on an unaudited and uncertified basis. As of June 30, 2007, 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, September 30, 2006, December 31, 2006, March 31, 2007 and June 30, 2007.  In order to facilitate the preparation of Sea Containers Ltd and Sea Container Services Limited’s October 15, 2006 balance sheet, it was necessary to make certain assumption and estimates. The certification and audit process for Sea Container Services Limited at December 31, 2005 and December 31, 2006 year ends may result in adjustments to the above stated assets. The foreign exchange rates used to translate June 30, 2007, May 31, 2007 and October 15, 2006 were $2.01, $1.99 and $1.87 respectively.

(8)  As at June 30, 2007 professional fees totalling $726,038 have been expensed.  The allocation of professional fees is under review.

(9)  The income tax credit for the period October 16, 2006 to June 30, 2007 consists of deferred tax of $4,821,320 and current tax of $2,683,394.

As part of the 2005 audit of Sea Container Services Limited and a review of the allocation of professional fees, the carrying value of the deferred tax asset in the balance sheet and the estimated current tax credit in the statement of operations, are under review.

15




 

SEA CONTAINERS CARIBBEAN

BALANCE SHEET

 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

June 30,

 

October 15,

 

 

 

 

Note

 

 

2007

 

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 assets represents Sea Containers Group’s internal accounting, on an unaudited and uncertified basis.  As of June 30, 2007, 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, September 30, 2006 December 31, 2006, March 31, 2007 and June 30, 2007. The certification and audit process may result in adjustments to the above stated assets. Sea Containers Caribbean Inc. has not traded in the last twelve months.

16




 

 

 

 

 

Unaudited

 

Unaudited

 

 

 

 

 

June 30,

 

October 15,

 

 

 

 

Note

 

 

2007

 

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 assets represents Sea Containers Group’s internal accounting, on an unaudited and uncertified basis.  As of June 30, 2007, 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, September 30, 2006 December 31, 2006, March 31, 2007 and June 30, 2007. The certification and audit process may result in adjustments to the above stated assets. Sea Containers Caribbean Inc. has not traded in the last twelve months.

17




 

SCL Intercompany Balance As At

 

 

 

June 30

 

May 31

 

 

 

 

 

2007

 

2007

 

Movement

 

 

 

 

 

 

Receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SC British Isles

 

123,146,912

 

121,920,993

 

1,225,919

 

SC Services

 

68,440,113

 

69,953,823

 

(1,513,710

)

West Australia Line

 

1,222,855

 

1,222,855

 

0

 

Ferry & Port Holdings

 

927,161,398

 

919,245,006

 

7,916,392

 

SC Finland (Ex Silja Holdings)

 

93,475,291

 

93,475,291

 

0

 

SC America Inc

 

8,195,856

 

8,195,856

 

0

 

CMCI

 

2,611,781

 

2,611,781

 

0

 

SC Asia Pte

 

545,140

 

545,140

 

0

 

SeaCat 2

 

20,013,418

 

20,013,418

 

0

 

SC Australia

 

7,902,610

 

7,902,610

 

0

 

Cooltainers

 

25

 

25

 

0

 

SPC

 

127,702,359

 

126,612,793

 

1,089,566

 

SPC Holdings

 

142,167,251

 

142,167,251

 

0

 

SC Brasilia

 

12,962,346

 

12,962,346

 

0

 

Mobilbox

 

182

 

182

 

0

 

Strider 2

 

4,222,504

 

4,222,504

 

0

 

Vessel Holdings 3

 

7,644,985

 

7,644,985

 

0

 

Strider 9

 

1,938,178

 

1,938,178

 

0

 

Strider 10

 

8,821,179

 

8,821,179

 

0

 

Technitank

 

600,000

 

600,000

 

0

 

Boxer 2

 

2,731,302

 

2,731,302

 

0

 

Boxer 3

 

13,419,698

 

13,419,698

 

0

 

Contender 1

 

36,712,498

 

36,712,498

 

0

 

Pacifica Ship Management

 

196,460

 

196,460

 

0

 

Nagara Tam

 

854,524

 

854,524

 

0

 

Nagara Ltd

 

1,052,675

 

1,052,675

 

0

 

Seafast Management Services

 

63,965

 

63,965

 

0

 

Paulista Containers

 

25,293,404

 

25,293,404

 

0

 

Brasiluvas Agricola

 

3,287,648

 

3,278,860

 

8,788

 

SC Properties

 

10,217,854

 

10,217,854

 

0

 

Vessel Holdings

 

2,390,777

 

2,390,777

 

0

 

SeaCat 4

 

16,152,868

 

16,122,868

 

30,000

 

SC Mauritius

 

52,102

 

52,102

 

0

 

Freight containers India

 

37,018

 

37,018

 

0

 

Super SeaCat 1

 

20,402,939

 

20,402,939

 

0

 

Super SeaCat 2

 

25,555,343

 

25,555,343

 

0

 

Super SeaCat 3

 

8,261,506

 

8,261,506

 

0

 

Super SeaCat 4

 

12,637,702

 

12,637,702

 

0

 

SeaCat Ltd

 

17,212,321

 

17,212,321

 

0

 

SeaCat 6

 

12,282,187

 

12,282,187

 

0

 

SeaCat 7

 

13,377,343

 

13,377,343

 

0

 

SC Ropax

 

3,310,671

 

3,310,671

 

0

 

Seacat Limited

 

1,732,564

 

1,872,624

 

(140,060

)

Fast Ferries Ltd

 

9,325,645

 

9,677,215

 

(351,570

)

SC Opera

 

39,059,114

 

39,059,114

 

0

 

SC Finnjet

 

16,287,248

 

16,287,248

 

0

 

SC Treasury

 

13,221,341

 

12,769,561

 

451,780

 

SC Estonia

 

11,533

 

11,533

 

0

 

SC Finland OY

 

293,978

 

293,978

 

0

 

 

 

1,864,208,611

 

1,855,491,506

 

8,717,105

 

 

18




 

SCL Intercompany Balance As At

 

 

 

June 30

 

May 31

 

 

 

 

 

2007

 

2007

 

Movement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Super SeaCat Italia

 

(130

)

(130

)

0

 

SC Italia Holdings

 

(66,621

)

(66,621

)

0

 

Fairways and Swinford

 

(313,802

)

(313,802

)

0

 

SC Chartering

 

(60

)

(60

)

0

 

Yorkshire Marine Containers

 

(13,029,234

)

(12,909,708

)

(119,526

)

Illustrated London News

 

(20,188,562

)

(20,113,606

)

(74,956

)

SC Finland Services

 

(19,520,612

)

(19,449,685

)

(70,927

)

Liverpool Dublin

 

(42

)

(42

)

0

 

Hoverspeed GB

 

(3,811,179

)

(3,773,257

)

(37,922

)

SC UK

 

(1,023,256,733

)

(1,013,075,124

)

(10,181,609

)

Burginhall 818

 

(40,202

)

(39,802

)

(400

)

SeaCo Parts Inc

 

(439,147

)

(439,147

)

0

 

SC Ports & Ferries

 

(80,680,292

)

(80,680,292

)

0

 

IRS pte

 

(46,963

)

(46,963

)

0

 

Hyde Park Containers

 

(5,251

)

(5,251

)

0

 

Melbourne Park containers

 

(210,346

)

(210,346

)

0

 

IRS NZ

 

(34,661

)

(34,661

)

0

 

SC Iberia

 

(5,620,639

)

(5,003,186

)

(617,453

)

Contender 2

 

(5,116,079

)

(5,116,079

)

0

 

Atlantic Maritime Services

 

(2,591,280

)

(2,591,280

)

0

 

Marine Container Insurance

 

(12,013,628

)

(12,013,628

)

0

 

Societe Bananiere De Motobe

 

(1,625,043

)

(1,625,043

)

0

 

SC Holdings

 

(18,329,337

)

(18,146,956

)

(182,381

)

SC Finance Ireland

 

(5,478,093

)

(5,458,188

)

(19,905

)

SCL Activities

 

(10,080

)

(13,839

)

3,759

 

Place holder

 

(1,212,428,016

)

(1,201,126,696

)

(11,301,320

)

Net

 

651,780,595

 

654,364,810

 

(2,584,215

)

 

19




 

SCS Intercompany Balance As At

 

 

 

USD 2.01

 

USD 1.99

 

 

 

 

 

 

 

Jun-07

 

May-31

 

 

 

Movement

 

 

 

2007

 

2007

 

Movement

 

@ USD  2.01

 

 

 

£

 

£

 

£

 

 

Receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SC British Isles

 

23,789,378

 

23,789,378

 

 

 

Ferry & Port Holdings (incl ILN)

 

1,607,402

 

1,644,567

 

(37,165

)

(74,702

)

ILN + Sketch

 

25,580,923

 

25,580,923

 

 

 

YMCL

 

5,115,401

 

5,087,666

 

27,735

 

55,747

 

SC Maritime

 

1,106,891

 

1,096,684

 

10,207

 

20,516

 

SC Asia Pte

 

558,387

 

558,387

 

 

 

Periandros

 

457,194

 

453,859

 

3,335

 

6,703

 

Newhaven Marina

 

192,714

 

192,714

 

 

 

SC House Management

 

153,191

 

153,191

 

 

 

SC America Inc

 

29,112

 

29,112

 

 

 

Insurance Premiums to be recharged

 

2,520

 

2,520

 

 

 

 

 

58,593,113

 

58,589,001

 

4,112

 

8,265

 

 

 

 

 

 

 

 

 

 

 

Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCL

 

(34,051,639

)

(35,152,675

)

1,101,036

 

2,213,082

 

SC Property Services

 

(1,582,327

)

(1,582,327

)

 

 

Fairways & Swinford

 

(100,410

)

(25,443

)

(74,967

)

(150,684

)

SC Treasury

 

(131,820

)

(131,693

)

(127

)

(255

)

 

 

(35,866,196

)

(36,892,138

)

1,025,942

 

2,062,143

 

 

 

22,726,917

 

21,696,863

 

1,030,054

 

2,070,409

 

 

 

 

 

 

 

 

 

 

 

Receivable

 

$

117,772,157

 

$

116,592,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payable

 

(72,091,054

)

(73,415,355

)

 

 

 

 

 

 

45,681,103

 

43,176,757

 

 

 

 

 

 

20




 

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.

 

21




 

In Re;

Sea Containers Ltd

 

Case No.

 

 

 

 

 

Reporting Date

June 30, 2007

 

 

Accounts Receivable Reconciliation and Ageing

 

 

 

$              

 

 

 

 

 

Total accounts receivable at the beginning of the reporting period

 

1,516,125

 

 

 

 

 

Add   Amounts billed during the period

 

247,900

 

 

 

 

 

Less   Amounts collected during the period

 

(903,100

)

 

 

 

 

Other movements

 

(4,789

)

 

 

 

 

Total accounts receivable at the end of the reporting period

 

856,136

 

 

Accounts Receivable Ageing

 

0 - 30   days old

 

160,818

 

 

 

 

 

31 - 60   days old

 

175,330

 

 

 

 

 

61 - 90   days old

 

33,270

 

 

 

 

 

91 +   days old

 

486,718

 

 

 

 

 

Total accounts receivable

 

856,136

 

 

 

 

 

Amounts considered uncollectible (net)

 

(856,136

)

 

 

 

 

Accounts receivable net

 

 

 

The company is undergoing a full bad debt review. Until this review is complete it is the Company’s policy to fully provide against all trade receivables. However the Company continues to collect its trade receivables as and when they fall due.

 

22




 

In Re;

Sea Containers Service Limited

 

Case No.

 

 

 

 

 

Reporting Date

June 30, 2007

 

 

Accounts Receivable Reconciliation and Ageing

 

 

 

$            

 

 

 

 

 

Total accounts receivable at the beginning of the reporting period

 

41,199

 

 

 

 

 

Add   Amounts billed during the period

 

20,964

 

 

 

 

 

Less   Amounts collected during the period

 

(34,592

)

 

 

 

 

Other movements

 

(4,239

)

 

 

 

 

Total accounts receivable at the end of the reporting period

 

23,332

 

 

Accounts Receivable Ageing

 

0 - 30   days old

 

0

 

 

 

 

 

31 - 60   days old

 

23,332

 

 

 

 

 

61 - 90   days old

 

0

 

 

 

 

 

91 +   days old

 

0

 

 

 

 

 

Total accounts receivable

 

23,332

 

 

 

 

 

Amounts considered uncollectible (net)

 

0

 

 

 

 

 

Accounts receivable net

 

23,332

 

 

23




 

Sea Containers Ltd

Post Petition Aged Creditors listing

As at June 30, 2007

 

 

 

 

 

Number of days past due

 

 

 

 

 

Current

 

0 - 30

 

31 - 60

 

61 - 90

 

Total

 

 

 

$

 

$

 

$

 

$

 

$

 

Accounts Payable

 

24,713

 

19,058

 

9,169

 

104,327

 

157,267

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional fees

 

16,630

 

301,658

 

233,597

 

1,001,036

 

1,552,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41,343

 

320,716

 

242,766

 

1,105,363

 

1,710,188

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional fees are made up as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bingham McCutchen

 

 

 

 

243,759

 

243,759

 

Carter Ledyard and Milburn

 

15,318

 

66,955

 

 

 

82,273

 

Conyers Dill and Pearman

 

1,312

 

 

 

 

1,312

 

Houlihan Lokey Howard

 

 

 

 

218,516

 

218,516

 

Kirkland and Ellis

 

 

 

 

129,486

 

129,486

 

Kroll

 

 

125,782

 

 

 

125,782

 

Morris Nichols

 

 

 

 

43,728

 

43,728

 

Pepper Hamilton

 

 

7,065

 

 

 

7,065

 

Sidley Austin

 

 

 

221,028

 

345,473

 

566,501

 

Warren H Smith and Assoc

 

 

5,562

 

 

 

5,562

 

Willkie Farr & Gallagher

 

 

96,294

 

12,569

 

 

108,863

 

Young Conaway

 

 

 

 

20,074

 

20,074

 

 

 

16,630

 

301,658

 

233,597

 

1,001,036

 

1,552,921

 

 

24




 

Sea Containers Services Ltd

Post Petition Aged Creditors listing

As at June 30, 2007

 

 

 

 

 

Number of days past due

 

 

 

 

 

Current

 

0 - 30

 

31 - 60

 

61 - 90

 

Total

 

 

 

$

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

 

1,275,675

 

143,725

 

1,831

 

64,499

 

1,485,730

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional fees

 

125,430

 

 

175,513

 

125,844

 

426,787

 

 

 

1,401,105

 

143,725

 

177,344

 

190,343

 

1,912,517

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional fees are made up as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pricewaterhouse Coopers

 

 

 

 

76,860

 

76,860

 

Richards Butler

 

 

 

175,513

 

48,984

 

224,497

 

Collinson Grant

 

125,430

 

 

 

 

125,430

 

 

 

125,430

 

 

175,513

 

125,844

 

426,787

 

 

25




 

DEBTORS QUESTIONNAIRE

 

Must be completed each month

 

Yes

 

No

1. Have any assets been sold or transferred outside normal course of
business this reporting period? If yes, provide an explanation below.

 

 

 

x

2. Have any funds been disbursed from any account other than a debtor in
possession account this reporting period? If yes, provide an explanation below.

 

 

 

x

3. Have all postpetition tax returns been timely filed? If no, provide an
explanation below.

 

x

 

 

4. Are workers compensation, general liability and other necessary insurance
coverages in effect? If no, provide an explanation below.

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26