EX-99.3 4 y98557exv99w3.txt DVI BUSINESS CREDIT CORP. MONTHLY OPERATING REPORT EXHIBIT 99.3 UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting Period: 05/01/04 - 05/31/04 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.
DOCUMENT EXPLANATION REQUIRED DOCUMENTS FORM NO. ATTACHED ATTACHED ------------------ -------- -------- -------- Schedule of Cash Receipts and Disbursements MOR - 1A x Bank Reconciliations (or copies of Debtor's bank reconciliations) MOR - 1B x Statement of Operations MOR - 2 Balance Sheet MOR - 3 Status of Postpetition Taxes MOR - 4 x Copies of IRS Form 6123 or payment receipt (See Tax Affidavit) x Copies of tax returns filed during reporting period (See Tax Affidavit) x Summary of Unpaid Postpetition Debts MOR - 4 x Listing of aged accounts payable x Accounts Receivable 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. RESPONSIBLE PARTY: /s/ Montgomery W. Cornell Authorized Signatory ------------------------------------- --------------------------------- Signature of Responsible Party Title Montgomery W. Cornell 6/22/2004 ------------------------------------- --------------------------------- Printed Name of Responsible Party Date PREPARER: /s/ Andrew Stearns Controller ------------------------------------- --------------------------------- Signature of Preparer Title Andrew Stearns 6/22/2004 ------------------------------------- --------------------------------- Printed Name of Preparer Date IN RE DVI BUSINESS CREDIT CORPORATION CASE NUMBER: 03-12658 (MFW) REPORTING PERIOD: 05/01/04 - 05/31/04 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS (in thousands)
CURRENT MONTH CUMULATIVE FILING TO DATE -------------------------- ------------------------- DEBTOR NON-DEBTOR (i) ACTUALS ------ -------------- ------------------------- CASH BEGINNING 99 26 132 ------ -------------- ------------------------- RECEIPTS Customer Payments (a) 5 - 292 Trust Receipts (b) - 7,370 31,162 Trust Advances (b) - (329) (15,068) Receipt of Servicer Fee 37 - 992 DIP Facility Advances - - 6,750 Other - - 173 ------ -------------- ------------------------- TOTAL RECEIPTS 42 7,041 24,301 ------ -------------- ------------------------- DISBURSEMENTS Payroll (d)(e)(f) (287) - (3,091) Benefits (d)(e)(f) (22) - (279) Building Costs (g) (10) - (397) Equipment Costs (6) - (159) Auto, Travel & Entertainment - - (164) Outside Services (54) - (536) Sales & Use Taxes - - - Payments by Affiliates on Debtor's Behalf (c) 690 - 5,770 DIP Facility Repayments (259) - (6,081) DIP Operating Reserve - - (142) DIP Fees (36) - (108) Advance to RC III Trust (j) - - (2,400) Paydown of US Bank Debt - (7,027) (16,124) Other Expense (h) (18) (1) (529) Professional Fees (45) - (45) U.S. Trustee Quarterly Fees - - (15) ------ -------------- ------------------------- TOTAL DISBURSEMENTS (47) (7,028) (24,300) ------ -------------- ------------------------- NET CASH FLOW (5) 13 1 ------ -------------- ------------------------- CASH END OF MONTH 94 39 133 ------ -------------- -------------------------
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH DEBTOR COLUMN) TOTAL DISBURSEMENTS (47) Transfers to Debtor in Possession Accounts - Estate Disbursements Made By Outside Sources (i.e. from escrow accounts) - Disbursements Related to Restricted Funds that are not Estate Expenses - Payments by Affiliates on Debtor's Behalf (c) (690) TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES (737)
See footnotes following MOR - 1B. MOR - 1A IN RE DVI BUSINESS CREDIT CORPORATION CASE NUMBER: 03-12658 (MFW) REPORTING PERIOD: 05/01/04 - 05/31/04 BANK RECONCILIATIONS (in thousands)
ACCOUNTS CURRENT MONTH --------------------------------------------- -------------------- DEBTOR OPERATING NON-DEBTOR (i) OTHER ACTUALS ---------------- ---------------- --------------------- -------------------- CASH BEGINNING OF MONTH 99 26 - 125 ------ -------------- ----------------- ------------ RECEIPTS Customer Payments (a) 5 - - 5 Trust Receipts (b) - 7,370 - 7,370 Trust Advances (b) - (329) - (329) Receipt of Servicer Fee 37 - - 37 DIP Facility Advances - - - - Other - - - - ------ -------------- ----------------- ------------ TOTAL RECEIPTS 42 7,041 - 7,083 ------ -------------- ----------------- ------------ DISBURSEMENTS Payroll (d)(e)(f) 287) - - (287) Benefits (d)(e)(f) (22) - - (22) Building Costs (g) (10) - - (10) Equipment Costs (6) - - (6) Auto, Travel & Entertainment - - - - Outside Services (54) - - (54) Sales & Use Taxes - - - - Payments by Affiliates on Debtor's Behalf (c) 690 - 690 DIP Facility Repayments (259) - - (259) DIP Operating Reserve - - - - DIP Fees (36) - - (36) Advance to RC III Trust (j) - - - - Paydown of US Bank Debt - (7,027) - (7,027) Other Expense (h) (18) (1) - (19) Professional Fees (45) - - (45) U.S. Trustee Quarterly Fees - - - - ------ -------------- ----------------- ------------ TOTAL DISBURSEMENTS (47) (7,028) - (7,075) ------ -------------- ----------------- ------------ NET CASH FLOW (5) 13 - 8 ------ -------------- ----------------- ------------ CASH END OF MONTH 94 39 - 133 ------ -------------- ----------------- ------------ BANK BALANCE 94 39 - 133 Deposits in Transit - - - - Outstanding Checks - - - - Other - - - - ADJUSTED BANK BALANCE 94 39 - 133 ------ -------------- ----------------- ------------
See footnotes on following page. MOR - 1B DVI BUSINESS CREDIT CORPORATION REPORTING PERIOD: 05/01/04 - 05/31/04 CASE NUMBER: 03-12658 (MFW) MOR 1-A and 1-B FOOTNOTES (all $ amounts in thousands) (a) Payments on loan agreements between DVI Business Credit Corporation (BC), case #03-12658, and customers. (b) Collections received from the trust clients or US Bank Collateral clients that are sent to the trust or US Bank. These net receipts are considered restricted cash. Procedures are in place to sweep these funds to the appropriate place in a timely manner. Please see Appendix 1 for additional information regarding May receipts. (c) Payments made by DVI Financial Services Inc. (DFS), case #03-12657, out of its operating account for the benefit of BC creditors. The $690 paid by DFS on behalf of the Debtor consists of the following:
DFS Direct DFS Allocated Total ---------- ------------- ----- Payroll $ 256 $ 31 $ 287 Benefits 19 3 22 Building Costs 2 8 10 Equipment Costs 2 4 6 Auto, Travel & Ent. 0 0 0 Outside Services 51 3 54 DIP Fees 0 36 36 Legal Settlement 215 0 215 Professional Fees 0 45 45 Other 3 15 18 ---------- ------------ ----- Total* $ 548 $ 145 $ 693
*Amount is gross of $3 thousand paid out of Debtor's own bank account. (d) The number of employees at the end of the period as compared to pre-petition: July 66 May 2
(e) The benefit-to-payroll (not including KERP) relationship, with an allocation of benefits similar to payroll was 16.7% for BC. Expenses were adjusted for Cobra costs to be reimbursed. (f) The payroll is a separate payroll register, but the same DFS cash account is used to make payroll payments. (g) Building costs of $10 ($8 allocation from DFS and $2 direct costs) were primarily the result of allocations from DFS (see footnote c). Please refer to the DFS monthly operating report for supplemental data. (h) Other expenses of $18 were primarily the result of $15 in allocations from DFS and $3 in direct bank charges paid by the Debtor. Please refer to the DFS footnotes. (i) Consists of non-Debtor restricted funds passing through unrestricted cash accounts. (j) To make funds available for clients in the RC III trust. In re DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting Period: 05/01/04 - 05/31/04 STATUS OF POSTPETITION TAXES (a) (in thousands) The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero.
Beginning Amount Ending Tax Withheld or Amount Tax Liability Accrued Paid Liability --------- ----------- ------ --------- FEDERAL Withholding - 58 (58) - FICA-Employee - 12 (12) - FICA-Employer (b) - 12 (12) - Unemployment - - - - Income (c) (d) (3,776) (661) 549 (3,888) Other - - - - --------- ----------- ------ --------- Total Federal Taxes (3,776) (579) 467 (3,888) --------- ----------- ------ --------- STATE AND LOCAL Withholding - 9 (9) - Sales (b) - - - - Excise - - - - Unemployment - - - - Real Property - - - - Personal Property - - - - Florida Doc Stamp - - - - Franchise - - - - Other: Local Income Tax Withholding - 2 (2) - Total State and Local - 11 (11) - --------- ----------- ------ --------- TOTAL TAXES (3,776) (568) 456 (3,888) --------- ----------- ------ ---------
SUMMARY OF UNPAID POSTPETITION DEBTS (in thousands)
ACCOUNTS PAYABLE AGING AMOUNT ---------------------- -------- 0 - 30 days 19 31 - 60 days - 61 - 90 days - 91+ days - -------- TOTAL ACCOUNTS PAYABLE 19 --------
Explain how and when the Debtor intends to pay any past-due postpetition debts. ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ See footnotes on following page. MOR-4 DVI BUSINESS CREDIT CORPORATION REPORTING PERIOD: 05/01/04 - 05/31/04 CASE NUMBER: 03-12658 (MFW) MOR 4 FOOTNOTES (a) Debtor is required to periodically pay state and federal income taxes, state franchise taxes, state and county personal property taxes, and license taxes. Per the tax affidavit, the Debtor submitted all required postpetition tax returns due during the reporting period. (b) Debtor has obtained authorization from the Bankruptcy Court to pay such tax liabilities. Amounts collected and remitted in any reporting period will vary due to variations in sales tax reporting periods and filing due dates. (c) Beginning balance represents a tax benefit asset. (d) Includes non-cash transfer of tax benefit to DVI Financial Services Inc. (case #03-12657). In re DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting Period: 05/01/04 - 05/31/04 RECEIVABLES (a) (in thousands)
RECEIVABLES AMOUNT ----------------------------------------------------------------------------------- ------------ Total Lines of Credit Collateralized by Third-party Medical Receivables (b) 247,405
DEBTOR QUESTIONNAIRE
MUST BE COMPLETED EACH MONTH YES NO ----------------------------------------------------------------------------------- --- --- 1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below. (SEE ATTACHED APPENDICES) 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
________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ MOR 5 (a) Business of Debtor relates to revolving credit facilities for customers that are collateralized by customer medical receivables. As a result, all receivables outstanding change daily and therefore a traditional aging presentation is not applicable. The total lines of credit collateralized by third-party medical receivables as of May 31, 2004 is listed above. (b) $183.7 million owned by securitization trusts; $63.7 million owned by DVI Business Credit Corporation. DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting Period: 05/01/04 - 05/31/04 DVI BUSINESS CREDIT CORPORATION TAX AFFIDAVIT To the best of my knowledge, DVI Business Credit Corporation has filed all tax returns and made all required tax payments on a timely basis, except for pre-petition liabilities not authorized for payment by the Bankruptcy Court. 6/22/2004 /s/ Montgomery W. Cornell --------- ------------------------------------- Date Signature of Responsible Party Montgomery W. Cornell APPENDIX 1 UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting period: 05/01/04 - 05/31/04 REPORT OF THE SALE, DISPOSAL, OR ABANDONMENT OF ESTATE ASSETS Asset Description: New Valley Health Group Inc. ("New Valley") was a customer of both DVI Business Credit Corporation ("DBC") and DVI Financial Services Inc. ("DFS"). In addition to its lending relationship, the Debtors had a majority interest in New Valley. The assets of New Valley were sold to O2 Science Acquisition Corp. for $9.7 million of which $2.0 million went to settle DFS leases that were sold into securitization trusts, $7.2 million went to settle DBC owned receivables and the balance to pay certain claims and administrative and other expenses. Effective Date: 05/10/04 Compensation: $9.7 million in cash of which $7.2 million went to pay DBC estate secured liabilities.