EX-99.1 5 ras-ex991_6.htm EX-99.1 ras-ex991_6.htm

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 1 of 16

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

THE DISTRICT OF DELAWARE

X

In re  

: :

Chapter 11

RAIT FUNDING, LLC,

:

Case No. 19-11915 (BLS)

a Delaware limited liability company, et. al. (1)

: :

 

                     Debtors.

:

Jointly Administered

X

Monthly Operating Report

For the Period From December 1, 2019, to December 31, 2019

DEBTORS' ADDRESS:

Two Logan Square

100 N. 18th Street, 23rd Floor

Philadelphia, Pennsylvania 19103

(Attn: John J. Reyle)

 

DEBTORS' ATTORNEYS:

REPORT PREPARER:

Patrick A. Jackson (Del. Bar No. 4976)

Joseph N. Argentina, Jr. (Del. Bar No. 5453)

222 Delaware Avenue, Suite 1410

Wilmington, DE 19801

Tel: (302) 467-4200

Fax: (302) 467-4201

Patrick.Jackson@dbr.com

Joseph.Argentina@dbr.com

RAIT FUNDING, LLC

Michael P. Pompeo

Brian P. Morgan

1177 Avenue of the Americas,

41st Floor

New York, NY 10036-2714

Tel: (212) 248-3140

Fax: (212) 248-3141

Michael.Pompeo@dbr.com

Brian.Morgan@dbr.com

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.

/s/ Alfred Dilmore1/30/2020

Alfred DilmoreDate

Chief Financial Officer

Notes: (1)

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number (if applicable), are as follows: RAIT Funding, LLC, a Delaware limited liability company (9983); RAIT Financial Trust, a Maryland real estate investment trust (9819); RAIT General, Inc., a Maryland corporation (9987); RAIT Limited, Inc., a Maryland corporation (9773); Taberna Realty Finance Trust, a Maryland real estate investment trust (3577); RAIT JV TRS, LLC, a Delaware limited liability company (3190); and RAIT JV TRS Sub, LLC, a Delaware limited liability company (4870). The mailing address for all Debtors is Two Logan Square, 100 N. 18th Street, 23rd Floor, Philadelphia, Pennsylvania 19103 (Attn: John J. Reyle).

FORM Cover Page

1 OF 16

 

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 2 of 16

UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF DELAWARE

RAIT FUNDING LLC

Case No. 19-11915 (BLS)

Debtor

Reporting Period: 12/01/19 - 12/31/19

Monthly Operating Report

Required Documents

Form No.

Document Attached

Explanation Attached

Schedule of Cash Receipts and Disbursements

MOR-1a

x

 

Bank Account Reconciliation/Information

MOR-1b

N/A

x

Schedule of Professional Fees Paid

MOR-1c

x

 

Copies of Bank Statements

 

N/A

x

Cash Disbursements Journals

 

N/A

x

Statement of Operations

MOR-2

x

 

Balance Sheet

MOR-3

x

 

Status of Post-Petition Taxes

MOR-4a

N/A

x

Copies of IRS Form 6123

 

N/A

x

Copies of Tax Returns Filed During Reporting Period

 

N/A

x

Summary of Unpaid Post-Petition Debts

MOR-4b

x

 

Listing of Aged Accounts Payable

MOR-4b

x

 

Accounts Receivable Reconciliation and Aging

MOR-5a

x

 

Debtor Questionnaire

MOR-5b

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR PAGE 2 OF 16

 

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 3 of 16

Global Notes and Statements of Limitations and

Disclaimers Regarding the Debtors' Monthly Operating Reports

 

This Monthly Operating Report ("MOR") includes activity for the following Debtors:

 

Debtor

Case No.

RAIT Funding, LLC

19-11915 (BLS)

RAIT Financial Trust

19-11916 (BLS)

RAIT General, Inc.

19-11917 (BLS)

RAIT Limited, Inc.

19-11918 (BLS)

Taberna Realty Finance Trust

19-11919 (BLS)

RAIT JV TRS, LLC

19-11920 (BLS)

RAIT JV TRS SUB, LLC

19-11921 (BLS)

 

On August 30, 2019 (the “Petition Date”), RAIT Funding LLC and 6 of its affiliates (collectively, the “Debtors”), each commenced a voluntary case under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Debtors are authorized to operate their businesses and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On September 4, 2019, the Bankruptcy Court entered an order authorizing the joint administration of these cases pursuant to Bankruptcy Rule 1015(b).

These following notes and statements and limitations should be referred to, and referenced in connection with, any review of this MOR.

1.

Basis for Presentation.  This MOR has been prepared solely for the purpose of complying with the monthly reporting requirements in these chapter 11 cases and is in a format the Debtors believe is acceptable to the United States Trustee.  The financial statements and supplemental information contained herein are preliminary, unaudited and may not comply in all material respects with accounting principles generally accepted in the United States ("GAAP").  In addition, certain of the financial statements and supplemental information contained herein represent consolidated information (e.g., RAIT Financial Trust and its consolidated subsidiaries). The unaudited consolidated financial statements have been derived from the books and records of the Debtors.  This information, however, has not been subject to certain procedures that would typically be applied to financial information in accordance with GAAP, and upon application of such procedures the financial information could be subject to material change.  The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors.

 

The information furnished in this report includes normal recurring adjustments, but may not include all adjustments that would typically be made for financial information in accordance with GAAP.

The consolidated results of operations contained herein are not necessarily indicative of results which may be expected for any other period or for the full year and may not necessarily reflect the consolidated results of the Debtors' operations, their financial position and the schedule of receipts and disbursements in the future.  The Debtors caution readers not to place undue reliance upon the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.

2.

Accuracy. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non‐bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder.  Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws or for any evaluations of the Debtors based on this financial information or any other information.

 

3.

Liabilities Subject to Compromise. Liabilities subject to compromise have been reported at the amounts recorded on the Debtors' books and records as of the date of the report. The amounts classified as liabilities subject to compromise in the financial statements included herein are preliminary and may be subject to future adjustments depending on Bankruptcy Court actions, developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, rejection of executory contracts, reconciliation of claims, and other events.

 

4.

Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors' rights or an admission with respect to their chapter 11 cases.

 

5.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors' books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

 

6.

Consolidated Entity Accounts Payable and Disbursement Systems. Cash is received and disbursed by the Debtors as described in the Motion of Debtors for

 

Entry of Interim and Final Orders (I) Authorizing The Debtors To (A) Continue To Operate Their Cash Management System, (B) Honor Certain Prepetition

Obligations Related Thereto, (C) Maintain Existing Business Forms, And (D) Continue To Perform Intercompany Transactions, (II) Suspending The Requirements Contained In Section 345(B) Of The Bankruptcy Code, and (III) Granting Related Relief [Docket No. 4, 32 and 122]

 

 

FORM Notes PAGE 3 OF 16

 

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 4 of 16

Global Notes and Statements of Limitations (cont.)

7.

Debtor & Non-Debtor Activities. To the best of the Debtors’ ability, the information shown in this MOR is for the 7 Debtor entities. In that regard, MOR-2 (Statement of Operations) and MOR-3 (Balance Sheet) include individual data for Debtors, with aggregated activity for all non-Debtors, and aggregated intercompany eliminations across Debtors and non-Debtors. Historically, financial statements have only been produced by the Debtors on a consolidated basis (e.g., RAIT Financial Trust and its consolidated subsidiaries), and accounting processes and general ledger activity have occurred to support preparation of these consolidated financial statements, and not stand-alone financial statements for each Debtor. Accordingly, each Debtor’s individual information within MOR-2 and MOR-3 may not be in accordance with GAAP. As such. relying upon an unconsolidated view of each Debtor may be misleading and is being shown only for the purposes of complying with MOR reporting requirements.

 

8.

Sale of Substantially all Assets. On August 30, 2019, the Debtors entered into an Equity and Asset Purchase Agreement to sell substantially all of its assets to

 

CF RFP Holdings LLC, an entity owned by funds managed by affiliates of Fortress Investment Group LLC.  The sale was effectuated through a sale process under Section 363 of the United States Bankruptcy Code.  On December 23, 2019, the Debtors closed on that sale.  The sale was approved pursuant to a court order [Docket #268].  While the transaction is reflected in this MOR with the sale of assets and collection of the purchase price in cash, the purchase price allocation and other technical accounting aspects of the sale as required by GAAP, are preliminary and subject to material revision in future periods.

FORM Notes PAGE 4 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 5 of 16

 

 

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

 

Debtor

Reporting Period:

12/01/19 - 12/31/19

 

 

 

 

 

 

MOR-1a

 

 

 

 

Schedule of the Debtors' Cash Receipts and Disbursements

 

 

 

 

For the Period From December 1, 2019, to December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

Bank Balance 11/30/2019

 

$

40,128

 

 

 

 

 

 

Receipts:

 

 

 

 

Cash Receipts

 

 

1,390

 

Total Receipts

 

$

1,390

 

 

 

 

 

 

Disbursements:

 

 

 

 

  Operating Disbursements

 

 

 

 

Payroll and Benefits

 

$

(535

)

Professional Fees - Recurring

 

 

(36

)

Litigation Related Costs

 

 

-

 

Corporate Overhead

 

 

(309

)

REO Maintenance

 

 

-

 

Other

 

 

-

 

Total Operating Disbursements

 

$

(879

)

 

 

 

 

 

  Non-Operating Cash Items

 

 

 

 

Professional Fees - Restructuring

 

$

(2,999

)

Principal & Interest

 

 

-

 

Transaction Related Expenses

 

 

(360

)

Sale Proceeds

 

 

128,600

 

Total Non-Operating Cash Flow

 

$

125,241

 

 

 

 

 

 

Net Cash Flow

 

$

125,752

 

 

 

 

 

 

Ending Bank Balance 12/31/2019

 

$

165,880

 

 

 

 

 

 

Outstanding Checks

 

 

(48

)

 

 

 

 

 

Ending Book Balance 12/31/2019

 

$

165,832

 

 

 

 

 

 

 

FORM MOR-1a PAGE 5 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 6 of 16

 

RAIT FUNDING LLC

Case No. 19-11915 (BLS)

Debtor

Reporting Period: 12/01/19 - 12/31/19

MOR-1b

Bank Reconciliation

As of December 31, 2019

The Debtors hereby submit this attestation in lieu of providing copies of bank statements, bank reconciliations, and cash disbursement journals.

Attached to MOR-1a is a listing of all Debtor bank accounts, by account number, with period ending book balances. The Debtors affirm these accounts are reconciled monthly in accordance with the Debtors' ordinary course accounting practices and are available to the United States Trustee upon request. Further, the Debtors affirm that cash bank statements and cash disbursement journals are maintained in accordance with the Debtors' ordinary course accounting practices and are available to the United States Trustee upon request.

/s/ Alfred Dilmore1/30/2020

Signature of Authorized Individual

Date

Alfred Dilmore

Chief Financial Officer

Printed Name of Authorized IndividualTitle of Authorized Individual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR-1b - Bank Rec PAGE 6 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 7 of 16

 

 

 

RAIT FUNDING LLC

 

 

Case No.

19-11915 (BLS)

 

Debtor

 

 

Reporting Period:

12/01/19 - 12/31/19

 

 

 

 

 

 

 

 

MOR-1b (cont.)

 

 

 

 

 

 

Book Balances

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

Entity

Bank

Account No. (1)

Description

Ending Book Balance

 

RAIT Financial Trust

Citibank NA

*2169

Operating

$

130,120

 

RAIT Financial Trust

Citibank NA

*1136

MMA

 

6,535

 

RAIT Financial Trust

Citibank NA

*0232

MMA

 

20,774

 

Taberna Realty Finance Trust

Citibank NA

*0397

Operating

 

8,351

 

RAIT Funding LLC

Citibank NA

*5657

Operating

 

43

 

RAIT JV TRS LLC

Citibank NA

*9356

Operating

 

8

 

RAIT Financial Trust

Wilmington Trust

*4000

Escrow

 

-

 

Taberna Realty Finance Trust

Wilmington Trust

*9000

Escrow

 

-

 

 

 

 

 

 

 

 

Total Debtors Book Cash

 

 

 

$

165,832

 

 

 

 

 

 

 

 

(1) Represents last four digits of account number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR-1b - Book Balances

PAGE 7 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 8 of 16

 

RAIT FUNDING LLC

 

 

 

 

 

 

 

 

 

 

Case No.

 

19-11915 (BLS)

 

Debtor

 

 

 

 

 

 

 

 

 

 

Reporting Period:

 

12/01/19 - 12/31/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOR-1b (cont.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated US Trustee Fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in actuals)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Entity

Case No.

Oct. '19

Disbursements

 

Nov. '19

Disbursements

 

Dec. '19

Disbursements

 

Q4 '19

Disbursements

 

U.S. Trustee Fee

Q4-2019

 

RAIT Financial Trust

19-11916 (BLS)

$

688,659

 

$

1,106,290

 

$

4,237,958

 

$

6,032,907

 

$

60,329

 

RAIT Funding, LLC

19-11915 (BLS)

 

-

 

 

-

 

 

-

 

 

-

 

 

325

 

RAIT JV TRS LLC

19-11920 (BLS)

 

-

 

 

-

 

 

-

 

 

-

 

 

325

 

RAIT General, Inc.

19-11917 (BLS)

 

-

 

 

-

 

 

-

 

 

-

 

 

325

 

RAIT Limited, Inc.

19-11918 (BLS)

 

-

 

 

-

 

 

-

 

 

-

 

 

325

 

RAIT JV TRS SUB, LLC

19-11921 (BLS)

 

-

 

 

-

 

 

-

 

 

-

 

 

325

 

Taberna Realty Finance Trust

19-11919 (BLS)

 

2,604

 

 

-

 

 

-

 

 

2,604

 

 

325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated US Trustee Fees

 

$

691,262

 

$

1,106,290

 

$

4,237,958

 

$

6,035,510

 

$

62,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR-1b - UST Fee PAGE 8 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 9 of 16

 

RAIT FUNDING LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case No.

 

19-11915 (BLS)

 

 

Debtor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reporting Period:

 

12/01/19 - 12/31/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOR-1c

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Professional Fees Paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Period From December 1, 2019, to December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Professional Fees Paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Check/Wire

 

 

Current Period Payments

 

 

 

 

 

 

 

 

Amount Paid Since Filing

 

 

Professional

Period Covered

Payor

Number

 

Date

 

 

Fees

 

Expenses

 

Total

 

 

Fees

 

Expenses

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPIQ

N/A

RAIT Financial Trust

Wire

 

12/26/2019

 

 

$

122

 

$

-

 

$

122

 

 

$

247

 

$

-

 

$

247

 

 

Cole Schotz

Sep. - Dec. '19

RAIT Financial Trust

Wire

 

12/31/2019

 

 

 

18

 

 

0

 

 

18

 

 

 

18

 

 

0

 

 

18

 

 

Drinker Biddle & Reath

Sep. - Oct. '19

RAIT Financial Trust

Wire

 

12/31/2019

 

 

 

432

 

 

14

 

 

446

 

 

 

432

 

 

14

 

 

446

 

 

FTI Consulting Inc.

Sep. '19

RAIT Financial Trust

Wire

 

12/31/2019

 

 

 

181

 

 

0

 

 

181

 

 

 

181

 

 

0

 

 

181

 

 

Kramer Levin Naftalis & Frankel LLP

Sep. '19

RAIT Financial Trust

Wire

 

12/31/2019

 

 

 

257

 

 

6

 

 

263

 

 

 

257

 

 

6

 

 

263

 

 

U.S. Trustee Fee

Sep. '19

RAIT Financial Trust

 

-

 

 

-

 

 

 

-

 

 

-

 

 

-

 

 

 

7

 

 

-

 

 

7

 

 

UBS SECURITIES LLC

Dec. '19

RAIT Financial Trust

Wire

 

12/23/2019

 

 

 

1,906

 

 

63

 

 

1,968

 

 

 

2,356

 

 

63

 

 

2,418

 

 

Total

 

 

 

 

 

 

 

 

 

$

2,915

 

$

84

 

$

2,999

 

 

$

3,496

 

$

84

 

$

3,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR-1c PAGE 9 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 10 of 16

 

RAIT FUNDING LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case No.

 

19-11915 (BLS)

 

 

 

 

Debtor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reporting Period:

 

12/01/19 - 12/31/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOR-2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Period From December 1, 2019, to December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Entity

RAIT FUNDING, LLC

 

RAIT FINANCIAL TRUST

 

RAIT GENERAL, INC.

 

RAIT LIMITED, INC.

 

TABERNA REALTY FINANCE TRUST

 

RAIT JV TRS, LLC

 

RAIT JV TRS SUB, LLC

 

Non-Debtors

 

Eliminations

 

Total

 

Case No.

19-11915

 

19-11916

 

19-11917

 

19-11918

 

19-11919

 

19-11920

 

19-11921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment interest income

$

-

 

$

23

 

$

-

 

$

-

 

$

54

 

$

-

 

$

-

 

$

1,847

 

$

(1,062

)

$

862

 

Investment interest expense

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(335

)

 

-

 

 

(335

)

Net interest margin

$

-

 

$

23

 

$

-

 

$

-

 

$

54

 

$

-

 

$

-

 

$

1,512

 

$

(1,062

)

$

527

 

Property income

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

975

 

 

-

 

 

975

 

Fee and other income

 

-

 

 

609

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

27

 

 

(18

)

 

619

 

Total revenue

$

-

 

$

632

 

$

-

 

$

-

 

$

54

 

$

-

 

$

-

 

$

2,514

 

$

(1,079

)

$

2,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,274

)

 

1,062

 

 

(213

)

Real estate operating expense

 

-

 

 

(0

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(475

)

 

-

 

 

(475

)

Property management expenses

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(28

)

 

-

 

 

(28

)

General and administrative expenses

 

(13

)

 

(550

)

 

-

 

 

-

 

 

(600

)

 

-

 

 

(0

)

 

(62

)

 

18

 

 

(1,207

)

Provision for losses

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Depreciation and amortization expense

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(32

)

 

-

 

 

(32

)

Total expenses

$

(13

)

$

(551

)

$

-

 

$

-

 

$

(600

)

$

-

 

$

(0

)

$

(1,871

)

$

1,079

 

$

(1,955

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating (Loss) Income

$

(13

)

$

82

 

$

-

 

$

-

 

$

(546

)

$

-

 

$

(0

)

$

643

 

$

(0

)

$

166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income (expense), net

 

0

 

 

0

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

43

 

 

-

 

 

43

 

Gains / (losses) on assets(1)

 

-

 

 

(40,367

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(40,367

)

Gains (losses) on extinguishments of debt

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Reorganization items, net

 

-

 

 

(3,062

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(3,062

)

Income (loss) before taxes

$

(13

)

$

(43,347

)

$

-

 

$

-

 

$

(546

)

$

-

 

$

(0

)

$

686

 

$

(0

)

$

(43,220

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (provision)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

$

(13

)

$

(43,347

)

$

-

 

$

-

 

$

(546

)

$

-

 

$

(0

)

$

686

 

$

(0

)

$

(43,220

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR-2

PAGE 10 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 11 of 16

RAIT FUNDING LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case No.

 

19-11915 (BLS)

 

Debtor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reporting Period:

 

12/01/19 - 12/31/19

 

MOR-3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Entity

RAIT FUNDING, LLC

 

RAIT FINANCIAL TRUST

 

RAIT GENERAL, INC.

 

RAIT LIMITED, INC.

 

TABERNA REALTY FINANCE TRUST

 

RAIT JV TRS, LLC

 

RAIT JV TRS SUB, LLC

 

Non-Debtors

 

Eliminations

 

Total

 

Case No.

19-11915

 

19-11916

 

19-11917

 

19-11918

 

19-11919

 

19-11920

 

19-11921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

43

 

$

157,430

 

$

-

 

$

-

 

$

8,351

 

$

8

 

$

-

 

$

3

 

$

-

 

$

165,835

 

Other assets(1)

 

100

 

 

6,003

 

 

-

 

 

-

 

 

4,979

 

 

-

 

 

539

 

 

454,891

 

 

(454,857

)

 

11,655

 

Total assets

$

143

 

$

163,432

 

$

-

 

$

-

 

$

13,330

 

$

8

 

$

539

 

$

454,894

 

$

(454,857

)

$

177,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities & Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indebtedness

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

0

 

 

(0

)

 

0

 

Accrued interest payable

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Accrued Expenses

 

-

 

 

4,688

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(0

)

 

(0

)

 

-

 

 

4,688

 

Accounts payable

 

-

 

 

0

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(0

)

 

-

 

 

0

 

Deferred taxes and other liabilities(2)

 

-

 

 

7,946

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

30

 

 

-

 

 

7,977

 

Liabilities not subject to compromise

$

-

 

$

12,634

 

$

-

 

$

-

 

$

-

 

$

-

 

$

(0

)

$

30

 

$

(0

)

$

12,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities subject to compromise

 

23,750

 

 

123,492

 

 

-

 

 

-

 

 

18,671

 

 

-

 

 

1

 

 

-

 

 

-

 

 

165,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

$

23,750

 

$

136,126

 

$

-

 

$

-

 

$

18,671

 

$

-

 

$

1

 

$

30

 

$

(0

)

$

178,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

-

 

 

2,874

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,874

 

Additional paid in capital

 

-

 

 

2,071,010

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

522,818

 

 

(491,324

)

 

2,102,504

 

Accumulated other comprehensive income (loss)

 

-

 

 

-

 

 

-

 

 

-

 

 

12,673

 

 

-

 

 

-

 

 

-

 

 

-

 

 

12,673

 

Retained earnings (deficit)

 

(54,532

)

 

(999,728

)

 

-

 

 

-

 

 

(657,446

)

 

-

 

 

(5,412

)

 

(253,867

)

 

(148,155

)

 

(2,119,140

)

Non-controlling interest

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

876

 

 

(876

)

 

-

 

Intercompany contributions/distributions

 

30,925

 

 

(1,046,851

)

 

-

 

 

-

 

 

639,432

 

 

8

 

 

5,950

 

 

185,037

 

 

185,498

 

 

0

 

Total equity

$

(23,607

)

$

27,306

 

$

-

 

$

-

 

$

(5,340

)

$

8

 

$

538

 

$

454,863

 

$

(454,857

)

$

(1,089

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities & equity

$

143

 

$

163,432

 

$

-

 

$

-

 

$

13,330

 

$

8

 

$

539

 

$

454,894

 

$

(454,857

)

$

177,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

(1) Other assets for Taberna Realty Finance Trust includes an estimate of the purchase price allocable to the assets of Taberna Realty Finance Trust that were sold on December 23, 2019; estimate is preliminary and is subject to further review.

(2) Other Liabilities for RAIT Financial Trust includes an estimate of the purchase price allocable to the assets of Taberna Realty Finance Trust that were sold on December 23, 2019; estimate is preliminary and is subject to further review.

 

FORM MOR-3

PAGE 11 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 12 of 16

 

 

 

 

 

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

 

Debtor

Reporting Period:

12/01/19 - 12/31/19

 

 

 

 

 

 

Supplemental Schedule

 

 

 

 

Reorganization Items

 

 

 

 

For the Period From December 1, 2019, to December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

Professional fees - restructuring

 

$

2,999

 

US Trustee fees

 

 

62

 

Total

 

$

3,062

 

 

 

 

 

 

 

 

 

 

 

Supplemental Schedule

 

 

 

 

Liabilities Subject to Compromise

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

Senior note claims

 

$

123,393

 

Subordinated RAIT Funding junior note claim and RAIT parent subordinated guaranty claim

 

 

23,750

 

Subordinated Taberna note claims

 

 

18,671

 

General unsecured claims

 

 

100

 

Total

 

$

165,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM Supp Sch

PAGE 12 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 13 of 16

 

 

 

 

 

 

 

 

 

 

RAIT FUNDING LLC

Case No. 19-11915 (BLS)

Debtor

Reporting Period: 12/01/19 - 12/31/19

MOR-4a

Status of Post-Petition Taxes

As of December 31, 2019

The Debtors have paid and are paying all undisputed post-petition taxes as they come due. Copies of filed tax returns and IRS forms, if applicable for this reporting period, are available to the U.S. Trustee upon request.

/s/ Alfred Dilmore1/30/2020

Signature of Authorized Individual

Date

Alfred Dilmore

Chief Financial Officer

Printed Name of Authorized IndividualTitle of Authorized Individual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR-4a PAGE 13 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 14 of 16

 

RAIT FUNDING LLC

 

 

 

 

 

 

 

 

 

Case No.

 

19-11915 (BLS)

 

Debtor

 

 

 

 

 

 

 

 

 

Reporting Period:

 

12/01/19 - 12/31/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOR-4b

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Unpaid Post-Petition Accounts Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

Current

 

1-30 Days

 

31-60 Days

 

Over 60 days

 

Total A/P

 

Corporate expenses

$

0

 

$

-

 

$

-

 

$

-

 

$

0

 

Total Accounts Payable

$

0

 

$

-

 

$

-

 

$

-

 

$

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR-4b PAGE 14 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 15 of 16

RAIT FUNDING LLC

 

 

 

 

 

 

 

 

 

Case No.

 

19-11915 (BLS)

 

Debtor

 

 

 

 

 

 

 

 

 

Reporting Period:

 

12/01/19 - 12/31/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOR-5a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

Current-30 Days

 

31-60 Days

 

61-90  Days

 

Over 90 Days

 

Total A/R

 

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

Total Accounts Receivable

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Accrued AR

 

 

-

 

 

 

 

 

Credit Balance Adjustment

 

 

-

 

 

 

 

 

(-) Allowance for Doubtful Accounts

 

 

-

 

 

 

 

 

Total Net Accounts Receivable

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable Reconciliation

 

 

 

 

 

 

 

 

Beginning A/R Balance, Net

 

 

 

 

 

 

 

 

(-) Total AR Cash Collections During the Period

 

 

-

 

 

 

 

 

(+) Change in Allowance for Doubtful Accounts

 

 

-

 

 

 

 

 

(+) Credit Balance Adjustment

 

 

-

 

 

 

 

 

(+) Net Sales During the Period Related to AR

 

 

-

 

 

 

 

 

Ending A/R Balance, Net

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORM MOR-5a PAGE 15 OF 16

Case 19-11915-BLS    Doc 395    Filed 01/30/20    Page 16 of 16

 

 

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

Debtor

Reporting Period:

12/01/19 - 12/31/19

 

 

 

MOR-5b

Debtor Questionnaire

 

 

For the Period From December 1, 2019, to December 31, 2019

 

 

 

 

 

 

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(1).

x

(see note below)

 

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 (2).

 

x

(see note below)

3. Have all post‐petition 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

 

5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001‐3.

 

x

 

 

 

 

 

 

 

 

Notes:

(1) On December 23, 2019, the Debtors closed on the sale of substantially all assets to CF RFP Holdings LLC. The sale was approved pursuant to a court order [Docket #268].

(2) Answer is specific to only Debtor related funds.  Non-Debtor entities are continuing to disburse funds in the normal course.

FORM MOR-5b PAGE 16 OF 16