EX-99.3 4 y01385exv99w3.txt DVI BUSINESS CREDIT CORP. MONTHLY REPORT UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting Period: 07/01/04 - 07/31/04 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 8/26/2004 --------------------------------- ---------------------------- Printed Name of Responsible Party Date PREPARER: /s/ Andrew Stearns Controller --------------------------------- ---------------------------- Signature of Preparer Title Andrew Stearns 8/26/2004 --------------------------------- ---------------------------- Printed Name of Preparer Date IN RE DVI BUSINESS CREDIT CORPORATION CASE NUMBER: 03-12658 (MFW) REPORTING PERIOD: 07/01/04 - 07/31/04 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS (in thousands)
CURRENT MONTH CUMULATIVE FILING TO DATE ----------------------------- ------------------------- DEBTOR NON-DEBTOR (i) ACTUALS ------- -------------- ------------------------- CASH BEGINNING 92 100 133 RECEIPTS Customer Payments (a) - - 302 Trust Receipts (b) - 47 31,302 Trust Advances (b) - - (15,078) Receipt of Servicer Fee - - 992 DIP Facility Advances - - 6,750 Other - - 444 ----- --- ------- TOTAL RECEIPTS - 47 24,712 ----- --- ------- DISBURSEMENTS Payroll (d)(e)(f) (25) - (3,217) Benefits (d)(e)(f) (2) - (289) Building Costs (g) (7) - (433) Equipment Costs (5) - (169) Auto, Travel & Entertainment (1) - (170) Outside Services (42) - (589) Sales & Use Taxes (27) - (27) Payments by Affiliates on Debtor's Behalf (c) 1,049 - 15,481 DIP Facility Repayments - - (6,362) DIP Operating Reserve - - (142) DIP Fees - - (108) Advance to RC III Trust (j) - - (2,400) Paydown of US Bank Debt - (71) (16,216) Other Expense (h) (62) (1) (610) Professional Fees (k) (864) - (9,397) U.S. Trustee Quarterly Fees (15) - (30) ----- --- ------- TOTAL DISBURSEMENTS - (72) (24,678) ----- --- ------- NET CASH FLOW - (25) 34 ----- --- ------- CASH END OF MONTH 92 75 167 ----- --- ------- DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH DEBTOR COLUMN) TOTAL DISBURSEMENTS - 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) (1,049) TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES (1,049)
See footnotes following MOR - 1B. MOR - 1A IN RE DVI BUSINESS CREDIT CORPORATION CASE NUMBER: 03-12658 (MFW) REPORTING PERIOD: 07/01/04 - 07/31/04 BANK RECONCILIATIONS (in thousands)
ACCOUNTS CURRENT MONTH ---------------------------------------- -------------- Debtor Operating Non-Debtor (i) Other Actuals ---------------------------------------- -------------- CASH BEGINNING OF MONTH 92 100 - 192 ------------------------------------------------------------------------------------------------------ RECEIPTS Customer Payments (a) - - - - Trust Receipts (b) - 47 - 47 Trust Advances (b) - - - - Receipt of Servicer Fee - - - - DIP Facility Advances - - - - Other - - - - ------------------------------------------------------------------------------------------------------ TOTAL RECEIPTS - 47 - 47 ------------------------------------------------------------------------------------------------------ DISBURSEMENTS Payroll (d)(e)(f) (25) - - (25) Benefits (d)(e)(f) (2) - - (2) Building Costs (g) (7) - - (7) Equipment Costs (5) - - (5) Auto, Travel & Entertainment (1) - - (1) Outside Services (42) - - (42) Sales & Use Taxes (27) - - (27) Payments by Affiliates on Debtor's Behalf (c) 1,049 - 1,049 DIP Facility Repayments - - - - DIP Operating Reserve - - - - DIP Fees - - - - Advance to RC III Trust (j) - - - - Paydown of US Bank Debt - (71) - (71) Other Expense (h) (62) (1) - (63) Professional Fees (k) (864) - - (864) U.S. Trustee Quarterly Fees (15) - - (15) ------------------------------------------------------------------------------------------------------ TOTAL DISBURSEMENTS - (72) - (72) ------------------------------------------------------------------------------------------------------ NET CASH FLOW - (25) - (25) ------------------------------------------------------------------------------------------------------ CASH END OF MONTH 92 75 - 167 ------------------------------------------------------------------------------------------------------ BANK BALANCE 92 75 - 167 Deposits in Transit - - - - Outstanding Checks - - - - Other - - - - ADJUSTED BANK BALANCE 92 75 - 167
See footnotes on following page. MOR - 1B DVI BUSINESS CREDIT CORPORATION REPORTING PERIOD: 07/01/04 - 07/31/04 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. (c) Payments made by DVI Financial Services Inc. (DFS), case #03-12657, out of its operating account for the benefit of BC creditors. The $1,049 paid by DFS on behalf of the Debtor consists of the following:
DFS Direct DFS Allocated Total --------------------------------------- Payroll $ 13 $ 12 $ 25 Benefits 1 1 2 Building Costs 0 7 7 Equipment Costs 0 5 5 Auto, Travel & Ent. 1 0 1 Outside Services 25 17 42 Sales & Use Taxes 27 0 27 Professional Fees 0 864 864 US Trustee Fees 15 0 15 Other 58 4 62 --------------------------------------- Total* $ 140 $ 910 $1,050
*Amount is gross of $1 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 2003 66 July 2004 2 (e) The benefit-to-payroll (not including KERP) relationship, with an allocation of benefits similar to payroll was 12.1% for BC. Expenses were adjusted for Cobra costs to be reimbursed and payments for prior period workers compensation. (f) The payroll is a separate payroll register, but the same DFS cash account is used to make payroll payments. (g) Building costs of $7 ($7 allocation from DFS and $0 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 $63 were primarily the result of $4 in allocations from DFS, $48 in direct bank charges paid by the Debtor, $10 moving expenses and $1 non-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 DVI Receivables Corp. III Trust. (k) DVI, Inc. (case #03-12656), DFS and BC have determined to allocate professional fees paid by DVI Financial Services Inc. in equal parts to each Debtor. In re DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting Period: 07/01/04 - 07/31/04 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 - 3 (3) - FICA-Employee - 1 (1) - FICA-Employer (b) - 1 (1) - Unemployment - - - - Income (c) (d) (3,965) - - (3,965) Other - - - - Total Federal Taxes (3,965) 5 (5) (3,965) STATE AND LOCAL Withholding - 1 (1) - Sales (b) - - - - Excise - - - - Unemployment - - - - Real Property - - - - Personal Property - - - - Florida Doc Stamp - - - - Franchise - - - - Other: Local Income Tax Withholding - - - - Total State and Local - 1 (1) - TOTAL TAXES (3,965) 6 (6) (3,965)
SUMMARY OF UNPAID POSTPETITION DEBTS (in thousands)
ACCOUNTS PAYABLE AGING AMOUNT ------------------------------------------------------------ 0 - 30 days 2 31 - 60 days - 61 - 90 days - 91+ days - TOTAL ACCOUNTS PAYABLE 2
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: 07/01/04 - 07/31/04 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). At the end of its fiscal year on June 30, 2004, the Debtor discontinued the accrual for income tax benefits since the reorganization estate has sold or discontinued operations that were functioning during the prior fiscal year. In re DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting Period: 07/01/04 - 07/31/04 RECEIVABLES (a) (in thousands)
RECEIVABLES AMOUNT Total Lines of Credit Collateralized by Third-party Medical Receivables (b)(c) 237,164
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? X If yes, provide an explanation below. 2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? X If yes, provide an explanation below. 3. Have all postpetition tax returns been timely filed? X If no, provide an explanation below. 4. Are workers compensation, general liability and other necessary insurance coverages in effect? X If no, provide an explanation below.
-------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 July 31, 2004 is listed above. (b) $172.8 million owned by securitization trusts; $64.4 million owned by DVI Business Credit Corporation. (c) Receivables are listed at par, but are not expected to be recovered at par and will likely be severely impaired. DVI Business Credit Corporation Case No. 03-12658 (MFW) Reporting Period: 07/01/04 - 07/31/04 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. 8/26/2004 Montgomery W. Cornell ------------- ------------------------------- Date Signature of Responsible Party Montgomery W. Cornell