EX-99 2 e9919704.txt EXHIBIT 99.1 1 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF GEORGIA NEWNAN DIVISION In re: ) Chapter 11 ) DAN RIVER INC. ) Case No. 04-10990 ) Debtor. ) Judge Drake ) DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS) FOR THE PERIOD FROM JULY 4, 2004 TO AUGUST 7, 2004 -------------------------------------------------- Comes now the above-named debtor and files its Periodic Financial Reports in accordance with the Guidelines established by the United States Trustee and FRBP 2015. /s/ Felton E. Parrish ------------------------- Attorney for Debtor Dated: Atlanta, GA September 7, 2004 Debtor's Address and Phone Number: KING & SPALDING LLP 2291 Memorial Drive James A. Pardo, Jr. Danville, VA 24541 Georgia Bar No. 561206 (434) 799-7000 Sara Robinson Borders Georgia Bar No. 610649 191 Peachtree Street Atlanta, GA 30303-1763 (404) 572-4600 ATTORNEYS FOR THE DEBTOR 2 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF GEORGIA NEWNAN DIVISION In re: ) Chapter 11 ) DAN RIVER INC. ) Case No. 04-10990 ) Debtor. ) Judge Drake ) DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS) FOR THE PERIOD FROM JULY 4, 2004 TO AUGUST 7, 2004 -------------------------------------------------- NOTES TO THE MONTHLY OPERATING REPORT Total Cash Disbursements During The Reporting Period: $42,082,000 I declare under penalty of perjury that this statement and the accompanying documents and reports are true and correct to the best of my knowledge and belief. This 7th day of September 2004. /s/ Barry F. Shea ------------------------ Barry F. Shea Executive Vice President- Chief Financial Officer 3 In re: DAN RIVER INC. Case No. 04-10990 CONDENSED BALANCE SHEET (UNAUDITED) August 7, 2004 (in thousands) Assets Current assets: Cash and cash equivalents $ 1,913 Accounts receivable (less allowances of $9,671) 56,254 Inventories 132,202 Assets held for sale 4,243 Prepaid expenses and other current assets 10,056 Deferred income taxes 7,024 -------- Total current assets 211,692 Property, plant and equipment 438,434 Less accumulated depreciation and amortization (273,087) -------- Net property, plant and equipment 165,347 Investment and advances to subsidiaries 8,336 Other assets 8,172 -------- $393,547 ======== 4 In re: DAN RIVER INC. Case No. 04-10990 CONDENSED BALANCE SHEET (UNAUDITED) August 7, 2004 (in thousands) Liabilities and Shareholders' Equity Current liabilities: Long-term debt currently due $ 103,314 Accounts payable 10,468 Due to subsidiaries 4,964 Accrued compensation and related benefits 18,048 Other accrued expenses 8,337 --------- Total current liabilities 145,131 Deferred income taxes 7,024 Other liabilities 22,417 --------- Total liabilities not subject to compromise 174,572 Liabilities subject to compromise 193,143 Shareholders' equity: Common stock 225 Additional paid-in capital 210,147 Accumulated deficit (173,055) Accumulated other comprehensive loss (11,251) Unearned compensation - restricted stock (234) --------- Total shareholders' equity 25,832 --------- $ 393,547 ========= 5 In re: DAN RIVER INC. Case No. 04-10990 CONDENSED STATEMENT OF OPERATIONS (UNAUDITED) For the Period July 4, 2004 to August 7, 2004 (in thousands) Net sales $ 40,993 Cost of sales 38,923 -------- Gross profit 2,070 Selling, general and administrative expenses 4,980 -------- Operating loss (2,910) Other income, net 2 Interest expense (1,025) Equity in loss of subsidiaries (92) -------- Loss before reorganization items (4,025) Reorganization items (A) (1,040) -------- Net loss $ (5,065) ======== (A) Reorganization items consists of professional fees relating to bankruptcy matters. 6 In re: DAN RIVER INC. Case No. 04-10990 CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) For the Period July 4, 2004 to August 7, 2004 (in thousands) Cash flows from operating activities: Net loss $ (5,065) Adjustments to reconcile net loss to net cash provided by operating activities: Noncash interest expense 361 Depreciation and amortization of property, plant and equipment 2,853 Amortization of restricted stock compensation 16 Writedown/disposal of assets 5 Equity in loss of subsidiaries 92 Changes in operating assets and liabilities: Accounts receivable 453 Inventories 3,369 Prepaid expenses and other assets (542) Accounts payable and accrued expenses 921 Other liabilities 20 --------- Net cash provided by operating activities 2,483 --------- Cash flows from investing activities: Capital expenditures (160) Proceeds from sale of assets 1,492 --------- Net cash provided by investing activities 1,332 --------- Cash flows from financing activities: DIP credit facility - borrowings 41,546 DIP credit facility - payments (43,446) Payments of long-term debt (1,629) --------- Net cash used by financing activities (3,529) --------- Net increase in cash and cash equivalents 286 Cash and cash equivalents at beginning of period 1,627 --------- Cash and cash equivalents at end of period $ 1,913 ========= 7 In re: DAN RIVER INC. Case No. 04-10990 MONTHLY ACCOUNTS RECEIVABLE RECONCILIATION AND AGING (in thousands) Accounts Receivable at Petition Date: $55,992 Accounts Receivable Reconciliation Amount ---------------------------------- ------ Net accounts Receivable at the Beginning of the Reporting Period $ 56,708 PLUS: Current Month Sales, Net 40,993 LESS: Collections During the Month from Customers (41,716) Other, Net 269 Net Accounts Receivable at the End of the Reporting Period $ 56,254 Accounts Receivable Aging Amount Current $ 57,412 <30 Days Past Due 7,373 31 - 60 Days Past Due 472 60 - 90 Days Past Due 138 > 90 Days Past Due 530 Total Accounts Receivable 65,925 Less: Reserves and Allowances (9,671) Accounts Receivable (Net) $ 56,254 8 In re: DAN RIVER INC. Case No. 04-10990 MONTHLY ACCOUNTS PAYABLE AND SECURED PAYMENTS REPORT (in thousands) Post-Petition Accounts Payable consists of the following: Accounts Payable Aging (Post Petition Only) Amount 0-30 Days $ 8,560 31 - 60 Days 350 61 - 90 Days - Over 90 Days 34 Other - Primarily Accruals for Goods & Services 1,524 Received But Not Yet Invoiced Total Accounts Payable $ 10,468 SECURED CREDITORS: The Debtor made no payments to secured creditors except as otherwise permitted pursuant to Final Order, dated May 28, 2004, Authorizing Secured Post-Petition Financing on a Super Priority Basis. 9 In re: DAN RIVER INC. Case No. 04-10990 INVENTORY AND FIXED ASSETS REPORT INVENTORY REPORT (in thousands) Inventory Balance at the Petition Date: $141,758 Inventory Reconciliation Amount Inventory Balance at Beginning of Period $ 135,572 PLUS: Purchases and Other Costs Added During Period 35,553 LESS: Inventory Used/Sold (38,923) Inventory on Hand at End of Period $ 132,202 Method of Costing Inventory: first-in, first-out FIXED ASSET REPORT (in thousands) Fixed Assets Fair Market Value at petition Date: unknown Fixed Asset Reconciliation Amount Fixed Asset BV at Beginning of Period $ 168,072 LESS: Depreciation Expense (2,853) PLUS: Additions 133 Other Activity (5) Fixed Assets BV at End of Period $ 165,347 10 Brief Description of Fixed Assets Purchased/Disposed of During Period Additions were generally for routine replacement items. Pursuant to the "Order Establishing Procedures for Liquidating Non-Essential Assets Free and Clear of Liens, Claims, Encumbrances and Other Interests Through Either Auction or Private Sale" (entered May 28, 2004), the Debtor is permitted to sell assets that are valued at less than $250,000 individually in transactions not valued at more than $1,000,000. During the period, the Debtor received $950,000 in proceeds from sales of assets pursuant to this order. During the period the Debtor received $542,333 in proceeds from the sale of looms pursuant to an agreement dated April 7, 2004. The Debtor's motion to consummate this sale was granted by the Court per order entered on May 11, 2004. 11 In re: DAN RIVER INC. Case No. 04-10990 MONTHLY TAX REPORT TAXES PAID DURING THE MONTH Name of Taxing Authority Description Amount AR Dept. of Finance & Adm. SWH 344 AR Employment Security Dept. Unemployment 364 CA Dept. of Employ. Development SWH 1,089 CA Dept. of Employ. Development Unemployment 81 CA State Board of Equalization Sales Tax 148 FL Dept. of Revenue Sales Tax 107 FL Division of Unemploy. Comp. Unemployment 19 GA Dept. of Revenue Sales & Use Tax 4151 GA Dept. of Revenue SWH 22,272 GA Dept. of Labor Unemployment 52,585 IL Dept. of Revenue SWH 1,289 IL Dept. of Revenue Unemployment 119 IRS FICA & FWH 2,318,191 IRS Unemployment 73,731 MS Bureau of Revenue SWH 798 NC Dept. of Revenue Sales & Use Tax 760 NC Dept. of Revenue SWH 34,429 NC Employ Security Commission Unemployment 172,027 NJ Division of Revenue SWH 1,679 NJ Division of Revenue Unemployment 22 NYS Employment Taxes SWH 31,000 NYS Employment Taxes Unemployment 1,857 OR Dept. of Revenue SWH 405 OR Dept. of Revenue Unemployment 18 Receiver General Canada GST Return 18,871 SC Dept. of Revenue Sales & Use Tax 105 SC Dept. of Revenue SWH 980 SC Employment Security Commission Unemployment 172 State of New Jersey Sales Tax 25 TN Dept. of Revenue Sales & Use Tax 2,240 TN Dept. of Employ. Security Unemployment 15,910 Treasurer, State of Ohio Sales Tax 14 TX Workforce Commission Unemployment 45 VA Dept. of Taxation Sales Tax 1,823 VA Dept. of Taxation SWH 277,586 VA Employment Commission Unemployment 586,422 Total Taxes Paid 3,621,678 *Pursuant to the Order Authorizing the Debtors to (A) Maintain Existing Bank Accounts and cash Management System, (B) Continue Use of Existing Business Forms, and (C) Continue Use of Existing Investment Guidelines, the Debtor has not opened new cash accounts for tax payments. 12 In re: DAN RIVER INC. Case No. 04-10990 TAXES OWED AND DUE Name of Taxing Date Description Amount Authority Payment Due AR Dept. of Finance & 8/15/2004 SWH 516 Adm. CA State Board of 7/31/2005 Sales Tax 147 Equalization FL Dept. of Revenue 8/20/2004 Sales Tax 91 GA Dept. of Revenue 8/11/2004 SWH 8,479 GA Dept. of Revenue 8/20/2004 Sales & Use Tax 5,036 IL Dept. of Revenue 8/31/2004 SWH 644 IRS 8/9/2004 FICA & FWH 457,574 IRS 8/15/2004 FWH on Foreign Payments 842 MS Bureau of Revenue 8/15/2004 SWH 804 NC Dept. of Revenue 8/20/2004 Sales & Use Tax 695 NC Dept. of Revenue 8/11/2004 SWH 13,332 NJ Division of Revenue 8/11/2004 SWH 876 NY State Sales Tax 3/20/2005 Sales Tax 119 NYS Employment Taxes 8/11/2004 SWH 15,577 Receiver General 8/31/2004 July 2004 Canada GST Return 45,268 SC Dept. of Revenue 8/15/2004 SWH 1,092 SC Dept. of Revenue 8/20/2004 Sales & Use Tax 108 State of New Jersey 8/20/2004 Sales Tax 22 TN Dept. of Revenue 8/20/2004 Sales & Use Tax 3,256 Treasurer, State of 8/20/2004 Sales Tax 21 Ohio TX Comptroller of 1/20/2005 Sales Tax 45 Public Accts VA Dept. of Taxation 8/20/2004 Sales Tax 2,632 VA Dept. of Taxation 8/20/2004 Use Tax 8,488 VA Dept. of Taxation 8/11/2004 SWH 99,038 Total Taxes Unpaid 664,702 13 In re: DAN RIVER INC. Case No. 04-10990 CONFIRMATION OF INSURANCE List all policies of insurance in effect, including but not limited to workers' compensation liability, fire, theft, comprehensive, vehicle, health and life. Type of Coverage Expiration Property & Business Interruption 6/30/05 Boiler & Machinery 6/30/05 Commercial General Liability 6/1/05 General Liability - Brookneal Dam 6/1/05 Automobile -All states except TX, Canada 6/1/05 Automobile - Texas 6/1/05 International Package 6/1/05 Advertising Liability 6/1/05 Umbrella - Excess 6/1/05 Motor Truck Cargo & Marine Cargo 1/1/05 Canadian General Liability Policy 6/1/05 Directors & Officers 11/20/04 Crime 11/20/04 Fiduciary Liability 11/20/04 Special Risk 11/20/04 Workers Comp Excess for VA & GA 10/1/04 Workers Comp - AR, CA, FL, IL, MS, NJ, , 10/1/04 NC, OR, TX Workers Comp. TN 12/8/04 Workers Comp. NY 11/21/04 Health 1/1/05 Life Insurance 1/1/06 Long Term Disability 1/1/05 Basic Accident 1/1/06 Business Travel Accident 9/1/04 Short Term Disability -NY 9/1/04 14 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF GEORGIA NEWNAN DIVISION In re: ) Chapter 11 ) THE BIBB COMPANY LLC ) Case No. 04-10992 ) Debtor. ) Judge Drake ) DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS) FOR THE PERIOD FROM JULY 4, 2004 TO AUGUST 7, 2004 --------------------------------------------------- Comes now the above-named debtor and files its Periodic Financial Reports in accordance with the Guidelines established by the United States Trustee and FRBP 2015. /s/ Felton E. Parrish -------------------------- Attorney for Debtor Dated: Atlanta, GA September 7, 2004 Debtor's Address and Phone Number: KING & SPALDING LLP 2291 Memorial Drive James A. Pardo, Jr. Danville, VA 24541 Georgia Bar No. 561206 (434) 799-7000 Sara Robinson Borders Georgia Bar No. 610649 191 Peachtree Street Atlanta, GA 30303-1763 (404) 572-4600 ATTORNEYS FOR THE DEBTOR 15 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF GEORGIA NEWNAN DIVISION In re: ) Chapter 11 ) THE BIBB COMPANY LLC ) Case No. 04-10992 ) Debtor. ) Judge Drake ) DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS) FOR THE PERIOD FROM JULY 4, 2004 TO AUGUST 7, 2004 -------------------------------------------------- NOTES TO THE MONTHLY OPERATING REPORT Total Cash Disbursements During The Reporting Period: $0 The Debtor's only assets consist of idle real estate held for sale, with no book value. There was no activity during the reporting period. I declare under penalty of perjury that this statement is true and correct to the best of my knowledge and belief. This 7th day of September 2004. /s/ Barry F. Shea ---------------------------- Barry F. Shea Executive Vice President-Chief Financial Officer 16 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF GEORGIA NEWNAN DIVISION In re: ) Chapter 11 ) DAN RIVER FACTORY STORES, INC.) Case No. 04-10993 ) Debtor. ) Judge Drake ) DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS) FOR THE PERIOD FROM JULY 4, 2004 TO AUGUST 7, 2004 -------------------------------------------------- Comes now the above-named debtor and files its Periodic Financial Reports in accordance with the Guidelines established by the United States Trustee and FRBP 2015. /s/ Felton E. Parrish ------------------------- Attorney for Debtor Dated: Atlanta, GA September 7, 2004 Debtor's Address and Phone Number: KING & SPALDING LLP 2291 Memorial Drive James A. Pardo, Jr. Danville, VA 24541 Georgia Bar No. 561206 (434) 799-7000 Sara Robinson Borders Georgia Bar No. 610649 191 Peachtree Street Atlanta, GA 30303-1763 (404) 572-4600 ATTORNEYS FOR THE DEBTOR 17 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF GEORGIA NEWNAN DIVISION In re: ) Chapter 11 ) DAN RIVER FACTORY STORES, INC. ) Case No. 04-10993 ) Debtor. ) Judge Drake ) DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS) FOR THE PERIOD FROM JULY 4, 2004 TO AUGUST 7, 2004 -------------------------------------------------- NOTES TO THE MONTHLY OPERATING REPORT Total Cash Disbursements During The Reporting Period: $97,000 The above amount is provided for the purpose of calculating the US Trustee fee. This amount consists of the total of the Debtor's cost of goods sold, selling, general and administrative expenses, and capital expenditures for the reporting period ended August 7, 2004. As previously disclosed in the Dan River Factory Stores, Inc. Statement of Financial Affairs, the Debtor owns no assets and does not maintain a bank account. All disbursements for the Debtor's business are made by the Debtor's parent, Dan River Inc. For additional information on the nature of the Debtor's operations and assets and liabilities, please refer to the Debtor's previously filed Statement of Financial Affairs. I declare under penalty of perjury that this statement and the accompanying documents and reports are true and correct to the best of my knowledge and belief. This 7th day of September 2004. /s/ Barry F. Shea --------------------------- Barry F. Shea Executive Vice President-Chief Financial Officer 18 In re: DAN RIVER FACTORY STORES, INC. Case No. 04-10993 CONDENSED BALANCE SHEET (UNAUDITED) August 7, 2004 (in thousands) Assets Due from parent $ 2,278 ======= Liabilities and Shareholder's Equity Liabilities $ - Common stock - Paid-in capital 1,739 Retained earnings 539 ------- $ 2,278 ======= CONDENSED STATEMENT OF OPERATIONS (UNAUDITED) For the Period July 4, 2004 to August 7, 2004 (in thousands) Net sales $ 84 Cost of sales 62 --------- Gross profit 22 Selling, general and administrative expenses 35 --------- Net loss $ (13) ========= 19 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF GEORGIA NEWNAN DIVISION In re: ) Chapter 11 ) DAN RIVER INTERNATIONAL LTD. ) Case No. 04-10991 ) Debtor. ) Judge Drake ) DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS) FOR THE PERIOD FROM JULY 4, 2004 TO AUGUST 7, 2004 -------------------------------------------------- Comes now the above-named debtor and files its Periodic Financial Reports in accordance with the Guidelines established by the United States Trustee and FRBP 2015. /s/ Felton E. Parrish ---------------------------- Attorney for Debtor Dated: Atlanta, GA September 7, 2004 Debtor's Address and Phone Number: KING & SPALDING LLP 2291 Memorial Drive James A. Pardo, Jr. Danville, VA 24541 Georgia Bar No. 561206 (434) 799-7000 Sara Robinson Borders Georgia Bar No. 610649 191 Peachtree Street Atlanta, GA 30303-1763 (404) 572-4600 ATTORNEYS FOR THE DEBTOR 20 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF GEORGIA NEWNAN DIVISION In re: ) Chapter 11 ) DAN RIVER INTERNATIONAL LTD. ) Case No. 04-10991 ) Debtor. ) Judge Drake ) DEBTOR'S MONTHLY FINANCIAL REPORTS (BUSINESS) FOR THE PERIOD FROM JULY 4, 2004 TO AUGUST 7, 2004 -------------------------------------------------- NOTES TO THE MONTHLY OPERATING REPORT Total Cash Disbursements During The Reporting Period: $200,000 The above amount is provided for the purpose of calculating the US Trustee fee. This amount consists of certain transfers to non-Debtor Affiliates made pursuant to the Order Authorizing the Debtor to (A) Maintain Existing Bank Accounts and Cash Management System, (B) Continue Use of Existing Business Forms, and (C) Continue Use of Existing Investment Guidelines. All such disbursements were made on behalf of Dan River International Ltd. by Dan River Inc. The Debtor has no operations and its sole asset is its investment in foreign (non-debtor) subsidiaries. For additional information, please refer to the Debtor's previously filed Statement of Financial Affairs. I declare under penalty of perjury that this statement and the accompanying documents and reports are true and correct to the best of my knowledge and belief. This 7th day of September 2004. /s/ Barry F. Shea -------------------------- Barry F. Shea Executive Vice President-Chief Financial Officer 21 In re: DAN RIVER INTERNATIONAL LTD. Case No. 04-10991 CONDENSED BALANCE SHEET (UNAUDITED) August 7, 2004 (in thousands) Assets Investment in subsidiaries $ 6,013 ======= Liabilities and Shareholder's Equity Liabilities: Due to parent $19,352 Shareholder's equity: Capital stock - Accumulated deficit (13,339) ------- $ 6,013 =======