EX-99 2 e9911404.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 SEPTEMBER 5, 2004 TO OCTOBER 2, 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 November 1, 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 SEPTEMBER 5, 2004 TO OCTOBER 2, 2004 -------------------------------------------------------- NOTES TO THE MONTHLY OPERATING REPORT Total Cash Disbursements During The Reporting Period: $36,406,000 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 1st day of November 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) October 2, 2004 (in thousands) Assets Current assets: Cash and cash equivalents $ 3,055 Accounts receivable (less allowances of $8,449) 54,200 Inventories 128,868 Assets held for sale 5,617 Prepaid expenses and other current assets 7,962 Deferred income taxes 5,162 --------- Total current assets 204,864 Property, plant and equipment 404,957 Less accumulated depreciation and amortization (251,999) --------- Net property, plant and equipment 152,958 Investment and advances to subsidiaries 8,657 Other assets 7,717 --------- $ 374,196 ========= 4 In re: DAN RIVER INC. Case No. 04-10990 CONDENSED BALANCE SHEET (UNAUDITED) October 2, 2004 (in thousands) Liabilities and Shareholders' Equity Current liabilities: Long-term debt currently due $ 100,358 Accounts payable 10,943 Due to subsidiaries 5,960 Accrued compensation and related benefits 18,400 Other accrued expenses 10,772 --------- Total current liabilities 146,433 Deferred income taxes 5,162 Other liabilities 22,383 --------- Total liabilities not subject to compromise 173,978 Liabilities subject to compromise 193,290 Shareholders' equity: Common stock 225 Additional paid-in capital 210,147 Accumulated deficit (192,009) Accumulated other comprehensive loss (11,226) Unearned compensation - restricted stock (209) --------- Total shareholders' equity 6,928 --------- $ 374,196 ========= 5 In re: DAN RIVER INC. Case No. 04-10990 CONDENSED STATEMENT OF OPERATIONS (UNAUDITED) For the Period September 5, 2004 to October 2, 2004 (in thousands) Net sales $ 31,386 Cost of sales 31,127 --------- Gross profit 259 Selling, general and administrative expenses 3,798 Other operating costs, net (A) 7,943 --------- Operating loss (11,482) Other income, net 717 Interest expense (845) Equity in loss of subsidiaries (55) --------- Loss before reorganization items (11,665) Reorganization items (B) (1,598) --------- Net loss $ (13,263) ========= (A) Other operating costs, net consists of a $6,764,000 non-cash writedown of fixed assets and $1,179,000 for estimated severance and benefits relating to the closure of a finishing and sheet sewing facility in Danville, VA and a warehouse in Portsmouth, VA. (B) Reorganization items includes $1,143,000 for professional fees relating to bankruptcy matters and $455,000 for expense related to the key employee retention program. 6 In re: DAN RIVER INC. Case No. 04-10990 CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) For the Period September 5, 2004 to October 2, 2004 (in thousands) Cash flows from operating activities: Net loss $ (13,263) Adjustments to reconcile net loss to net cash provided by operating activities: Noncash interest expense 289 Depreciation and amortization of property, plant and equipment 2,265 Amortization of restricted stock compensation 13 Other operating costs, net 7,943 Equity in loss of subsidiaries 55 Changes in operating assets and liabilities: Accounts receivable 3,582 Inventories 1,506 Prepaid expenses and other assets 1,080 Accounts payable and accrued expenses (235) Other liabilities (22) --------- Net cash provided by operating activities 3,213 --------- Cash flows from investing activities: Capital expenditures (58) Proceeds from sale of assets 12 --------- Net cash used by investing activities (46) Cash flows from financing activities: DIP credit facility - borrowings 36,076 DIP credit facility - payments (36,300) Payments of long-term debt (1,572) --------- Net cash used by financing activities (1,796) --------- Net increase in cash and cash equivalents 1,371 Cash and cash equivalents at beginning of period 1,684 --------- Cash and cash equivalents at end of period $ 3,055 ========= 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 $ 57,781 PLUS: Current Month Sales, Net 31,386 LESS: Collections During the Month from Customers (36,761) Other, Net 1,794 Net Accounts Receivable at the End of the Reporting Period $ 54,200 Accounts Receivable Aging Amount ------------------------- ------ Current $ 54,525 <30 Days Past Due 6,453 31 - 60 Days Past Due 797 60 -90 Days Past Due 334 > 90 Days Past Due 540 Total Accounts Receivable 62,649 Less: Reserves and Allowances (8,449) Accounts Receivable (Net) $ 54,200 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 $ 9,460 31 - 60 Days 277 61 - 90 Days 55 Over 90 Days - Other - Primarily Accruals for Goods & Services Received But Not Yet Invoiced 1,151 Total Accounts Payable $ 10,943 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 $ 130,684 PLUS: Purchases and Other Costs Added During Period 29,311 LESS: Inventory Used/Sold (31,127) Inventory on Hand at End of Period $ 128,868 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 $ 163,077 LESS: Depreciation Expense (2,265) PLUS: Additions 67 Other Activity (writedowns) (7,921) Fixed Assets BV at End of Period $ 152,958 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 $138,621 in proceeds from sales of assets pursuant to this order, of which $12,000 represented proceeds from fixed assets held for sale. 10 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 CA Dept. of Employ. Development SWH 390 FL Dept. of Revenue Sales & Use 91 GA Dept. of Revenue Sales & Use 599 GA Dept. of Revenue SWH 28,336 IL Dept. of Revenue SWH 1,285 IRS FICA & FWH 2,564,270 MS Bureau of Revenue SWH 810 NC Dept. of Revenue SWH 44,982 NC Dept. of Revenue Sales & Use 495 NJ Division of Revenue SWH 2,581 NYC Dept. of Finance Rent 27,588 NYC Dept. of Finance 3rd Qtr Corp. Tax 2,300 NYS Corporation Tax 3rd Qtr Corp. Tax 3,700 NYS Employment Taxes SWH 43,662 OR Dept. of Revenue SWH 266 PA Dept. of Revenue 3rd Qtr Corp. Tax 3,900 Receiver General Canada GST Return 40,716 SC Dept. of Revenue SWH 839 SC Dept. of Revenue Sales & Use 181 TN Dept. of Revenue Sales & Use 1,176 VA Dept. of Revenue SWH 314,318 VA Dept. of Revenue Sales & Use 12,804 Total Taxes Paid $3,095,633 *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. 11 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 & 10/8/2004 SWH $ 513 Adm. AR Employment Security 10/31/2004 Unemployment 6 Dept. CA State Board of 7/31/2005 Sales Tax 24 Equalization FL Dept. of Revenue 10/20/2004 Sales Tax 138 GA Dept. of Revenue 10/20/2004 Sales & Use Tax 572 GA Dept. of Revenue 10/6/2004 SWH 9,012 GA Dept. of Labor 10/31/2004 Unemployment 5,965 IL Dept. of Revenue 10/15/2004 SWH 641 IL Dept. of Employment 10/31/2004 Unemployment 8 Security IRS 10/6/2004 FICA & FWH 425,254 IRS 10/31/2004 Unemployment 6,711 MS Bureau of Revenue 10/8/2004 SWH 896 NC Dept. of Revenue 10/20/2004 Sales & Use Tax 560 NC Dept. of Revenue 10/6/2004 SWH 14,782 NC Employment Security 10/31/2004 Unemployment 95,995 Comm. NJ Division of Revenue 10/6/2004 SWH 875 NY State Sales Tax 3/20/2005 Sales Tax 132 NYS Employment Taxes 10/6/2004 SWH 15,344 NYS Employment Taxes 10/31/2004 Unemployment 1,019 OR Dept. of Revenue 10/31/2004 Unemployment 18 Receiver General 11/1/2004 Canada GST Return 48,513 SC Dept. of Revenue 10/20/2004 Sales & Use Tax 30 SC Dept. of Revenue 10/15/2004 SWH 825 TN Dept. of Revenue 10/20/2004 Sales Tax 623 TN Dept. of Revenue 10/31/2004 Unemployment 318 TX Comptroller of 1/20/2005 Unemployment 61 Public Accts VA Dept. of Taxation 10/20/2004 Sales Tax 1,466 VA Dept. of Taxation 10/6/2004 SWH 93,871 VA Dept. of Taxation 10/20/2004 Use Tax 14,365 VA Employment Comm. 10/31/2004 Unemployment 55,481 Total Taxes Unpaid $ 794,018 12 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 10/1/05 Workers Comp - AR, CA, FL, IL, MS, NJ, , NC, OR, TX 10/1/05 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 12/31/04 Short Term Disability -NY 12/31/04 13 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 SEPTEMBER 5, 2004 TO OCTOBER 2, 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 November 1, 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 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 SEPTEMBER 5, 2004 TO OCTOBER 2, 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 1st day of November 2004. /s/ Barry F. Shea -------------------------- Barry F. Shea Executive Vice President-Chief Financial Officer 15 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 SEPTEMBER 5, 2004 TO OCTOBER 2, 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 November 1, 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 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 SEPTEMBER 5, 2004 TO OCTOBER 2, 2004 -------------------------------------------------------- NOTES TO THE MONTHLY OPERATING REPORT Total Cash Disbursements During The Reporting Period: $50,000 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 October 2, 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 1st day of November 2004. /s/ Barry F. Shea ------------------------- Barry F. Shea Executive Vice President-Chief Financial Officer 17 In re: DAN RIVER FACTORY STORES, INC. Case No. 04-10993 CONDENSED BALANCE SHEET (UNAUDITED) October 2, 2004 (in thousands) Assets Due from parent $ 2,283 ========== Liabilities and Shareholder's Equity Liabilities $ - Common stock - Paid-in capital 1,739 Retained earnings 544 ---------- $ 2,283 ========== CONDENSED STATEMENT OF OPERATIONS (UNAUDITED) For the Period September 5, 2004 to October 2, 2004 (in thousands) Net sales $ 51 Cost of sales 26 -------- Gross profit 25 Selling, general and administrative expenses 24 -------- Net income $ 1 ======== 18 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 SEPTEMBER 5, 2004 TO OCTOBER 2, 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 November 1, 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 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 SEPTEMBER 5, 2004 TO OCTOBER 2, 2004 -------------------------------------------------------- NOTES TO THE MONTHLY OPERATING REPORT Total Cash Disbursements During The Reporting Period: $155,000 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 1st day of November 2004. /s/ Barry F. Shea ----------------------- Barry F. Shea Executive Vice President-Chief Financial Officer 20 In re: DAN RIVER INTERNATIONAL LTD. Case No. 04-10991 CONDENSED BALANCE SHEET (UNAUDITED) October 2, 2004 (in thousands) Assets Investment in subsidiaries $ 6,330 ======= Liabilities and Shareholder's Equity Liabilities: Due to parent $ 19,727 Shareholder's equity: Capital stock - Accumulated deficit (13,397) -------- $ 6,330 ========