EX-99.1 2 tv525247_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Case 19-13448-VFP    Doc 723     Filed 07/15/19     Entered 07/15/19 23:42:20     Desc Main

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UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF NEW JERSEY

 

In re: Aceto Corporation, et al.    
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

CORPORATE MONTHLY OPERATING REPORT

 

REQUIRED DOCUMENTS Form No. Document Explanation Attached
    Attached  
Schedule of Cash Receipts and Disbursements MOR-1 X  
Bank Reconciliation (or copies of debtor’s bank reconciliations) MOR-1a X See Attestation
Schedule of Retained Professional Fees Paid MOR-1b X  
Copies of bank statements (See Notes to the MOR)     X
Cash disbursements journals (See Notes to the MOR)     X
Statement of Operations (Income Statement) MOR-2 X  
Balance Sheet MOR-3 X  
Status of Post-petition Taxes MOR-4 X See Attestation
Copies of IRS Form 6123 or payment receipt (See Notes to the MOR)     X
Copies of tax returns filed during reporting period (See Notes to the MOR)     X
Summary of Unpaid Post-petition Debts (See Notes to the MOR) MOR-4a   X
Listing of Aged Accounts Payable (See Notes to the MOR) MOR-4a   X
Accounts Receivable Reconciliation and Aging (See Notes to the MOR) MOR-5   X
Debtor Questionnaire MOR-6 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.

 

/s/ Carrianne J.M. Basler   July 15, 2019
Signature of Authorized Individual*   Date
     
Carrianne J.M. Basler    
Printed Name of Authorized Individual    
     
Chief Financial Officer    
Title    

 

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

 

 

 

 

Case 19-13448-VFP    Doc 723     Filed 07/15/19     Entered 07/15/19 23:42:20     Desc Main

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In re: Aceto Corporation, et al.   MOR Notes
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

Notes to the Monthly Operating Report

 

GENERAL:

The report includes activity from the following Debtors and related Case Numbers:

 

Debtor Case Number   Debtor Case Number
Aceto Corporation 19-13448   Kavris Health, LLC (fka Acetris Health, LLC) 19-13452
Tri Harbor Chemical Holdings LLC (fka Aceto Agricultural Chemical Corporation) 19-13449   Arsynco, Inc. 19-13454
Kavod Pharmaceuticals LLC (fka Rising Pharmaceuticals, Inc.) 19-13447   Tri Harbor Realty LLC (fka Aceto Realty LLC) 19-13450
KAVACK Pharmaceuticals LLC (fka PACK Pharmaceuticals, LLC) 19-13453   Acci Realty Corp. 19-13455
Kavod Health LLC (fka Rising Health, LLC) 19-13451      

 

Notes to the MOR:

This Monthly Operating Report (“MOR”) has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in these chapter 11 cases and is in a format acceptable to the U.S. Trustee. The financial information contained herein is unaudited, limited in scope, and, as discussed below, is not prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

The unaudited financial statements have been derived from the books and records of Aceto Corporation and its affiliated debtors (collectively, the “Debtors”). The information furnished in this report includes primarily normal recurring adjustments, but not all of the adjustments that would typically be made for the quarterly and annual financial statements to be in accordance with U.S. GAAP. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of its quarterly and annual financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material.

 

The financial statements presented in MOR-2 and MOR-3 do not include elimination entries for intercompany balances related to non-debtor affiliates. Investment in subsidiary balances are recorded at cost which may not be in accordance with U.S. GAAP. The amounts currently classified as liabilities subject to compromise may be subject to future change as the Debtors complete their analysis of prepetition liabilities.

 

Amounts listed in the statement of operations and balance sheet in the attached MOR-2 and MOR-3 are based on preliminary information provided by the purchasers (the “Buyers”) of the assets of the Debtors’ Pharma Business and Chemical Plus (“ChemPlus”) Business as described in the relevant Asset Purchase Agreements and related documents filed previously with this Court, though the buyers of the assets of the ChemPlus Business have not yet confirmed the closing balance sheet information. The Debtors have not had the opportunity to complete their review of such amounts and therefore they may be subject to material change. Further, the Buyers may also assert that the Debtors may be liable for additional liabilities that are presently unknown. Accordingly, the Debtors reserve the right to amend this MOR.

 

Pursuant to the Court’s order establishing deadlines to file proofs of claim [Docket No. 509], the General Bar Date (as defined therein) for non-governmental units was June 19, 2019, and the Governmental Bar Date (as defined therein) is August 19, 2019. As of this filing, there have been approximately 240 claims filed in the aggregate amount of approximately $1.6 billion. The Debtors are in the process of reviewing and reconciling the claims filed to date and expect this process will continue for several months. There are many claims asserting amounts that are not reflected in the Debtors’ books and records that were relied upon for the completion of this MOR. To the extent those claims are allowed or otherwise deemed valid during the claims reconciliation process, the Debtors’ books and records will be adjusted accordingly.

 

The results of operations contained herein are not necessarily indicative of results which may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations, financial position, and cash flows of the Debtors in the future. The Debtors caution readers not to place undue reliance upon the MOR. Such information may be incomplete and the MOR may be subject to revision.

 

The financial statements contained herein do not include any accruals or estimates for an estate wind-down budget. Accordingly, they should not be relied upon as an indicator of recoveries. Reference should be made to the First Modified Joint Plan of Liquidation (the “Plan”) [Docket No. 684] and First Modified Disclosure Statement (the “Disclosure Statement”) [Docket No. 685] for information regarding estimated creditor recoveries.

 

Notes to MOR-1a:

The Debtors maintain 25 total bank accounts (collectively, the “Bank Accounts”) at several financial institutions (the “Banks”). The Bank Accounts vary in purpose and function across the Debtors, and each Debtor’s Bank Accounts serve its respective business accordingly.

 

Notes to MOR-2:

The Income Statement reflects revenue and expenses for the reporting month of April 2019 that directly correspond to the listed debtor legal entity. Amounts reported may not reflect gain/loss for tax purposes.

 

 

 

 

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In re: Aceto Corporation, et al.   MOR Notes
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

Notes to the Monthly Operating Report

 

Notes to MOR-3:

The Balance Sheet reflects assets, liabilities, and stockholders equity that directly correspond to the debtor legal entity.

 

As a result of the commencement of these chapter 11 cases, the payment of prepetition indebtedness is subject to compromise or other treatment under a chapter 11 plan. The Court authorized the Debtors to pay certain prepetition claims, including, but not limited to, certain trade and tax claims. To the extent such claims have been categorized as “Liabilities Not Subject to Compromise,” the Debtors reserve their right to dispute their obligation to make such payments. The Debtors have been paying, and intend to continue to pay, undisputed post-petition claims arising in the ordinary course of business.

 

The liability information contained herein, except as otherwise noted, is listed as of the close of business as of the end of the month. Accordingly, the Debtors reserve all rights to amend, supplement, or otherwise modify this MOR as necessary and appropriate, but shall be under no obligation to do so. The Debtors have paid certain prepetition liabilities pursuant to orders entered by the Court that authorize such payments. The Debtors believe that all undisputed post-petition accounts payable have been and are being paid according to agreed-upon terms specific to each vendor and/or service provider and as authorized by the Court. In addition, the liabilities reported in this MOR do not reflect any analysis conducted by the Debtors regarding potential claims under section 503(b)(9) of the Bankruptcy Code. Accordingly, the Debtors reserve any and all of their rights to dispute or challenge the validity of any claims asserted under section 503(b)(9) of the Bankruptcy Code or the characterization of the structure of any transaction, document, or instrument related to any creditor’s claim.

 

Intercompany accounts have not been reclassified to LSTC, nor have any Income Taxes Payable. In addition, income taxes payable and receivable are shown at gross amounts in these financial statements and have not been netted.

 

The amount reported in LSTC for the Unsecured Convertible Notes includes principal and accrued interest through the Petition Date.

 

The deferred payment obligation that arose in connection with the purchase of Citron Pharma and Lucid Pharma in 2016 has been adjusted to $30 million pursuant to the the Asset Purchase Agreement regarding the sale of the assets of the Pharma Business and mutual release executed in connection therewith, which was approved by the Court by order entered on April 10, 2019 [Docket No. 373]. This amount is included in LSTC for Kavod Pharmaceuticals LLC.

 

The investment of $1.9 million reported on Tri Harbor Chemical Holdings LLC (f/k/a Aceto Agriculture Chemical Corporation) represents its interest in Canegrass LLC, a joint venture. The JV is in the process of being dissolved. Upon completion, Tri Harbor Chemical Holdings LLC (f/k/a Aceto Agriculture Chemical Corporation) expects to receive this approximate amount in cash, but the value is subject to change.

 

Notes to MOR-4:

The Debtors received authority pursuant to various “first day” orders to pay certain prepetition liabilities, including prepetition tax liabilities.

 

The Debtors are current on all undisputed post-petition payables.

 

Notes to MOR 4a and MOR 5:

The Debtors disclose the ending accounts receivable and accounts payable balances as part of MOR-3. Due to the volume of transactions related to customer and vendor billings and payments, these items will be made available upon request.

 

 

 

 

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In re: Aceto Corporation, et al.   MOR-1
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

Schedule of Cash Receipts and Disbursements

Whole Values

 

Debtor Case Number Cash Receipts Cash Disbursements
Aceto Corporation 19-13448 $209,236,477 $24,041,957
Tri Harbor Chemical Holdings LLC 19-13449 3,085,785 615,706
Kavod Pharmaceuticals LLC 19-13447 21,582,632 18,065,552
KAVACK Pharmaceuticals LLC 19-13453 - -
Kavod Health LLC 19-13451 - -
Kavris Health, LLC 19-13452 1,756,345 -
Arsynco, Inc. 19-13454 - -
Tri Harbor Realty LLC 19-13450 53,248 27,090
Acci Realty Corp. 19-13455 - -
       
Total Cash Receipts and Cash Disbursements   $235,714,487 $42,750,306

 

Notes:

- Includes DIP Funding.

- Excludes transfers between Debtors.

- Cash receipts and disbursement amounts based on checks cleared, wires, and other transfer of funds. During the period, the Debtors also received and forwarded misdirected funds from customers intended for the purchasers of the Pharma and ChemPlus businesses. Those amounts are excluded from the totals represented herein.

- At the closing of the sales of substantially all assets of the ChemPlus Business and the Pharma Business, payments of prepetition secured debt and post-petition DIP financing were made directly to Wells Fargo, JPMorgan, and their professionals directly from the proceeds of the sales, in the respective amounts of $237,178,131.31 and $4,825,288.26. Of these amounts, $234,550,797.41 was paid directly to Wells Fargo and its professionals, and $2,627,333.90 was paid directly to JPMorgan and its professionals. Additionally, payment of success fees in the amount of $2,531,776.26 was made directly to PJT from the proceeds of the sale of the Pharma Business. These amounts are not included in the cash receipts or disbursements reported above.

 

 

 

  

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In re: Aceto Corporation, et al.   MOR-1a
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

Bank Account Information

Whole Values

 

Legal Entity Bank Last 4 Digits of
Account Number		 Book Balance  
Kavod Pharmaceuticals LLC Wells Fargo 5236 $8,938,909  
Kavod Pharmaceuticals LLC Wells Fargo 5244 5,163  
Kavris Health, LLC Wells Fargo 7026 1,829,506  
PACK Pharmaceuticals, Inc Wells Fargo 5771 203  
Kavod Health LLC Valley National Bank 9996 16,282  
Kavris Health, LLC Valley National Bank 9988 5,633  
Kavris Health, LLC Valley National Bank 7066 -  
Kavod Health LLC Valley National Bank 3542 395,489  
Aceto Corporation JP Morgan Chase 8648 185,536,028  
Aceto Corporation JP Morgan Chase 5641 308,149  
Aceto Corporation JP Morgan Chase 6899 22,075 [A]
Acci Realty JP Morgan Chase 4828 2,740  
Arsynco, Inc JP Morgan Chase 3783 2,039,404  
Tri Harbor Realty LLC JP Morgan Chase 9364 70,786  
Aceto Corporation TD Bank 9140 - [B]
Aceto Corporation TD Bank 9637 - [B]
Aceto Corporation Citibank 2449 9,258  
Aceto Corporation Wells Fargo 4853 2,234,161  
Aceto Corporation Wells Fargo 3076 228,519  
Aceto Corporation Wells Fargo 3036 27,590  
Aceto Corporation Wells Fargo 3166 182,312  
Aceto Corporation Wells Fargo 3066 2,569  
Tri Harbor Chemical Holdings LLC Chase 5722 3,346,736  
Tri Harbor Chemical Holdings LLC Wells Fargo 4036 106,307  
Tri Harbor Chemical Holdings LLC Wells Fargo 4166 55,664  
Aceto Corporation Bank of America 1418 12,690,819 [C]
         
         
      $218,054,304  

 

Notes to MOR 1-a:

All amounts listed above are the bank balances as of the end of the month. Copies of bank statements and cash disbursement journals are not included in this MOR. These items will be made available upon request.

 

During the period, the Debtors also received and forwarded misdirected funds from customers intended for the purchasers of the Pharma and ChemPlus businesses. Those amounts are excluded from the totals represented herein.

 

[A] Account was created to hold the Utility Deposits as defined in, and pursuant to, the interim and final orders regarding the Debtors’ utility providers entered on February 21, 2019 and March 15, 2019 [Docket Nos. 41 and 139].

[B] Account was closed on April 10, 2019 and will not be included in future Monthly Operating Reports.

[C] Account is the professional fee escrow account held by Lowenstein Sandler, which was created in connection with the closings of the sales of the assets of the Debtors’ businesses for the purpose of paying allowed claims of professionals retained by the Debtors’ estates pursuant to the interim compensation procedures order [Docket No. 205] and order authorizing the retention of ordinary course professionals [Docket No. 377].

 

 

 

  

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In re: Aceto Corporation, et al.   MOR-1a
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

Bank Reconciliation (or copies of debtor’s bank reconciliations)

 

         

 

The above-captioned debtors (the “Debtors”) hereby submit this attestation regarding bank account reconciliations in lieu of providing copies of bank statements, journals, and account reconciliations.

 

I attest that each of the Debtors’ bank accounts is reconciled to bank statements. The Debtors’ standard practice is to ensure that each bank account is reconciled to bank statements once per month within 31 days after the month end.

 

/s/ Carrianne J.M. Basler   July 15, 2019 
Signature of Authorized Individual   Date
     
     
Carrianne J.M. Basler   Chief Financial Officer
Printed Name of Authorized Individual   Title of Authorized Individual

 

 

 

  

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In re: Aceto Corporation, et al.   MOR-1b
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

Schedule of Retained Professional Fees Paid

Whole Values

 

Payee  Role of Professional  Amount Paid   Cumulative Payments
Since Filing		 
LOWENSTEIN SANDLER LLP  DEBTORS’ COUNSEL  $831,321   $831,321 
PJT PARTNERS LP  DEBTORS’ INVESTMENT BANKER   7,000,000    7,326,786 
AP SERVICES  DEBTORS’ FINANCIAL ADVISOR   489,474    489,474 
PRIME CLERK  DEBTORS’ ADMINISTRATIVE ADVISOR   -    60,305 
MCGUIREWOODS LLP  LENDERS’ COUNSEL   689,173    860,740 
MCCARTER & ENGLISH  LENDERS’ COUNSEL   13,517    25,398 
LATHAM & WATKINS  LENDERS’ COUNSEL   14,502    14,502 
FTI CONSULTING INC.  LENDERS’ FINANCIAL ADVISOR   102,997    102,997 
STROOK & STROOK & LAVAN LLP  COMMITTEE COUNSEL   -    - 
PORZIO BROMBERG & NEWMAN, P.C.  COMMITTEE COUNSEL   202,958    202,958 
GLASSRATNER  COMMITTEE FINANCIAL ADVISOR   -    - 
HOULIHAN LOKEY  COMMITTEE INVESTMENT BANKER   110,633    110,633 
              
      $9,454,574   $10,025,113 

 

Notes to MOR 1-b:

- All payments made to Porzio, Bromberg & Newman, P.C. and Houlihan Lokey were made directly by the Lowenstein Trust account (ending in 1418).

- Payments to McGuireWoods, McCarter & English, FTI Consulting, Latham and Watkins, and a portion of the PJT amount were paid at the closing of the sale of the ChemPlus Business directly from the proceeds of such sale by the Buyer.

 

 

 

  

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In re: Aceto Corporation, et al.    
Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

   UNAUDITED - April Month
Statement of Operations (Income Statement)		 
   Aceto Corporation
19-13448 (VFP)		   Tri Harbor
Chemical Holdings
LLC
19-13449 (VFP)		   Tri Harbor Realty
LLC
19-13450 (VFP)		   Arsynco, Inc.
19-13454 (VFP)		   Acci Realty Corp.
19-13455 (VFP)		   Kavod
Pharmaceuticals
LLC
19-13447 (VFP)		   Kavris Health, LLC
19-13452 (VFP)		   KAVACK
Pharmaceuticals
LLC
19-13453 (VFP)		   Kavod Health LLC
19-13451 (VFP)		 
                                     
Total Sales - Net  $15,172,038   $3,691,769   $-   $-   $-   $14,878,094   $1,877,977   $-   $- 
Total Cost of Goods Sold   (11,753,360)   (2,407,719)   –    –    –    (13,634,896)   (1,774,709)   –    – 
Gross Margin   3,418,677    1,284,051    –    –    –    1,243,198    103,268    –    – 
                                              
Total S,G&A Expenses   (18,137,603)   (146,895)   33,163    –    –    (6,343,521)   –    –    – 
Total Corporate Overhead Allocation   (1,033,651)   1,033,651    –    –    –    –    –    –    – 
OPERATING PROFIT (LOSS)  $(15,752,577)  $2,170,807   $33,163   $-   $-   $(5,100,323)  $103,268   $-   $- 
                                              
Professional Fees   (4,845,503)   –    –    –    –    –    –    –    – 
Interest income   27    –    –    –    –    –    –    –    – 
Exchange gains realised   (7,538)   (2,410)   –    –    –    –    –    –    – 
Gain / (Loss) On Sale Of Assets & Write-Down of Investment in Subs   (264,200,585)   (25,156,450)   (2,330,180)   –    –    (188,353,196)   (3,426,983)   –    – 
Provision For Bad Debt   –    –    –    –    –    –    –    –    – 
Other financial income   16,297    –    –    –    –    –    –    –    – 
Total Non-Operating Income/(Expense)   (269,037,301)   (25,158,859)   (2,330,180)   –    –    (188,353,196)   (3,426,983)   –    – 
                                              
Interest Expense   (7,903,258)   –    (144,117)   –    –    –    –    –    – 
PROFIT/(LOSS) BEFORE TAXES  $(292,693,136)  $(22,988,052)  $(2,441,134)  $-   $-   $(193,583,656)  $(3,323,715)  $-   $- 
TOTAL TAXES   –    –    –    –    –    –    –    –    – 
NET PROFIT / (LOSS)  $(292,693,136)  $(22,988,052)  $(2,441,134)  $-   $-   $(193,583,656)  $(3,323,715)  $-   $- 

 

The notes to this monthly operating report are an integral part of these combined financial statements. Amounts hereon may not reflect gain/loss for tax purposes.

 

 

 

  

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In re: Aceto Corporation, et al.    
Case No. (Jointly Administered) 19-13448
  Reporting Period: Month Ending April 30, 2019
  Federal Tax I.D. # 11-1720520

 

   UNAUDITED - April 30th
Balance Sheet		 
   Aceto Corporation   Tri Harbor
Chemical Holdings
LLC		   Tri Harbor Realty
LLC		   Arsynco, Inc.   Acci Realty Corp.   Kavod
Pharmaceuticals
LLC		   Kavris Health, LLC   KAVACK
Pharmaceuticals
LLC		   Kavod Health LLC 
   19-13448 (VFP)   19-13449 (VFP)   19-13450 (VFP)   19-13454 (VFP)   19-13455 (VFP)   19-13447 (VFP)   19-13452 (VFP)   19-13453 (VFP)   19-13451 (VFP) 
                                     
Cash & Cash Equivalents  $200,711,130   $3,508,707   $70,786   $2,039,404   $2,740   $9,356,047   $1,835,140   $-   $- 
Account receivables Net   –    –    –    –    –    –    –    –    – 
                                              
Other receivables   22,075    –    1,081    1,416,427    –    –    –    –    – 
Due From/(To) Affiliates   (83,979,328)   29,195,100    (1,711,494)   (16,584,067)   (302,315)   71,132,145    2,127,450    –    – 
Total inventories   –    –    –    –    –    –    –    –    – 
Income Tax Receivable   1,494,550    –    –    –    –    1,402,351    –    –    – 
Prepaid expenses   1,775,851    –    –    –    –    –    –    –    – 
Total Current Assets  $120,024,278   $32,703,807   $(1,639,628)  $(13,128,236)  $(299,576)  $81,890,543   $3,962,590   $-   $- 
                                              
Investments   –    1,947,127    –    –    –    –    –    –    – 
Investments in Subsidiaries & Affiliates   5,830,500    –    –    –    –    –    –    –    – 
Total Investments   5,830,500    1,947,127    –    –    –    –    –    –    – 
                                              
Property, plant & equipment - net   –    –    –    –    –    –    –    –    – 
                                              
Total Intangible Assets - Net   –    –    –    –    –    (2)   –    –    – 
                                              
Deferred Tax Assets - Net of Allowances   (9,044)   –    –    –    –    –    –    –    – 
                                              
Other Assets - LT   –    –    –    –    –    5,999    –    –    – 
Property held For Sale - LT   –    –    –    6,112,710    –    –    –    –    – 
Total Long Term Assets  $5,821,456   $1,947,127   $-   $6,112,710   $-   $5,997   $-   $-   $- 
Total Assets  $125,845,734   $34,650,934   $(1,639,628)  $(7,015,526)  $(299,576)  $81,896,541   $3,962,590   $-   $- 
                                              
Account payables   104,355    –    –    3,671    –    –    –    –    – 
Accrued Compensation   (0)   –    –    –    –    (0)   –    –    – 
Accrued Income Tax   2,502,589    –    –    –    –    (2,213,291)   –    –    – 
Accrued Environmental Remediation   –    –    –    3,147,616    –    –    –    –    – 
Accrued expenses - Other   12,773,106    10,984    –    –    –    –    –    –    – 
Total Current Liabilities  $15,380,050   $10,984   $-   $3,151,287   $-   $(2,213,291)  $-   $-   $- 
                                              
Accrued Income Tax LT   5,322,572    –    –    –    –    –    –    –    – 
Other long-term liabilities   –    –    –    –    –    –    –    –    – 
Total Long Term Liabilities  $5,322,572   $-   $-   $-   $-   $-   $-   $-   $- 
                                              
Total Liabilities Not Subject to Compromise  $20,702,622   $10,984   $-   $3,151,287   $-   $(2,213,291)  $-   $-   $- 
                                              
Total Liabilities Subject to Compromise  $144,848,869   $-   $-   $18,460   $-   $36,498,212   $-   $-   $- 
                                              
Shareholders’ Equity  $(39,705,757)  $34,639,949   $(1,639,628)  $(10,185,273)  $(299,576)  $47,611,621   $3,962,590   $-   $- 
Total Liabilities & Shareholders Equity  $125,845,734   $34,650,934   $(1,639,628)  $(7,015,526)  $(299,576)  $81,896,541   $3,962,590   $-   $- 

 

The notes to this monthly operating report are an integral part of these combined financial statements.

 

 

 

  

Case 19-13448-VFP    Doc 723     Filed 07/15/19     Entered 07/15/19 23:42:20     Desc Main

Document      Page 10 of 11

 

In re: Aceto Corporation, et al.   MOR-4
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

Status of Post-petition Taxes

 

         

 

The above-captioned debtors (the “Debtors”) hereby submit this attestation regarding Status of Post-petition Taxes in lieu of providing copies of post-petition tax payments and tax returns filed during reporting period.

 

I attest that each of the Debtors’ taxing authorities have been paid on time when post-petition amounts become due. Also, tax returns are being filed in an orderly and timely fashion in accordance with tax return reporting deadlines.

 

/s/ Carrianne J.M. Basler   July 15, 2019 
Signature of Authorized Individual   Date
     
     
Carrianne J.M. Basler   Chief Financial Officer
Printed Name of Authorized Individual   Title of Authorized Individual

 

 

 

 

Case 19-13448-VFP    Doc 723     Filed 07/15/19     Entered 07/15/19 23:42:20     Desc Main

Document      Page 11 of 11

 

In re: Aceto Corporation, et al.   MOR-6
  Case No. (Jointly Administered) 19-13448
  Reporting Period: April 1 - April 30, 2019
  Federal Tax I.D. # 11-1720520

 

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. 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  
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. (SEE MOR NOTES.) X  

 

Notes:

Question 1: On April 19, 2019 the Debtors consummated a sale of substantially all of the assets and liabilities of the Pharma Business previously operating under the entities Kavod Pharmaceuticals LLC (f/k/a Rising Pharmaceuticals, LLC, f/k/a Rising Pharmaceuticals, Inc.), Kavod Health LLC (f/k/a Rising Health, LLC), Kavris Health LLC (f/k/a Acetris Health, LLC), and KAVACK Pharmaceuticals LLC (f/k/a PACK Pharmaceuticals, LLC).

 

On April 29, 2019, the Debtors consummated a sale of substantially all of the assets and liabilities of the ChemPlus Business previously operating under the entities Aceto Corporation, Tri Harbor Chemical Holdings LLC (f/k/a Aceto Agricultural Chemicals LLC, f/k/a Aceto Agricultural Chemicals Corporation), Tri Harbor Realty LLC (f/k/a Aceto Realty LLC), and Acci Realty Corp.

 

Question 2: Payments to professionals retained by the Debtors’ estates were made from the professional fee escrow account held by Lowenstein Sandler, which is listed on MOR-1a.

 

Question 5: The professional fee escrow account discussed above and listed on MOR-1a was opened during this period and funded directly by the proceeds of the sales of substantially all assets of the Debtors’ businesses. Further, the Debtors opened a new bank account with Wells Fargo (ending 4853) in connection with their post-petition financing. Additional information for such account is available upon request.