8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report: July 5, 2005

THE KUSHNER-LOCKE COMPANY

(Exact name of registrant as specified in its charter)

California	0-17295	95-4079057
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
280 South Beverly Drive, Suite 205, Beverly Hills, California (Address of principal executive offices)		90212 (Zip Code)

Registrant’s telephone number, including area code: (310) 275-7505

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

     As previously disclosed in its Current Report on Form 8-K filed on November 21, 2001, and the Registrant’s Form 12b-25 filed on January 2, 2002, The Kushner-Locke Company, a California corporation (the “Registrant”), and certain of its wholly-owned subsidiaries (collectively, the “Debtors”), filed on November 21, 2001, voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. The Debtors’ Chapter 11 cases are currently pending before the United States Bankruptcy Court for the Central District of California, Los Angeles Division (the “Bankruptcy Court”) and are being jointly administered under Case No. LA-01-44828-SB.

     The Registrant’s unaudited monthly operating reports and monthly interim statements required by the Bankruptcy Court for March 2005 and April 2005 are provided in this Current Report on Form 8-K. The operating reports and interim statements have been duly filed by the Registrant with the Bankruptcy Court.

     THE OPERATING REPORTS AND THE INTERIM STATEMENTS CONTAIN FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION THAT HAVE NOT BEEN AUDITED OR REVIEWED BY INDEPENDENT ACCOUNTANTS, ARE NOT PRESENTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND MAY BE SUBJECT TO FUTURE RECONCILIATION OR ADJUSTMENTS. THE OPERATING REPORTS AND INTERIM STATEMENTS MAY ALSO CONTAIN INFORMATION FOR PERIODS THAT ARE SHORTER OR OTHERWISE DIFFERENT FROM THOSE CONTAINED IN THE REGISTRANT’S REPORTS REQUIRED TO BE MADE PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

     THE REGISTRANT MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER AS TO ANY OF THE INFORMATION CONTAINED IN THE OPERATING REPORTS OR THE INTERIM STATEMENTS. FOR THESE REASONS, THE REGISTRANT CAUTIONS READERS NOT TO PLACE UNDUE RELIANCE UPON THE INFORMATION CONTAINED IN THE OPERATING REPORTS OR THE INTERIM STATEMENTS. THE OPERATING REPORTS AND INTERIM STATEMENTS ARE BEING PROVIDED SOLELY FOR INFORMATION PURPOSES; THEY WERE NOT PREPARED FOR THE PURPOSE OF PROVIDING THE BASIS FOR AN INVESTMENT DECISION RELATING TO THE SECURITIES OF THE REGISTRANT.

Item 9.01. Financial Statements and Exhibits.

(a)	Financial Statements of Business Acquired.
	Not Applicable.
(b)	Pro Forma Financial Information.
	Not Applicable.
(c)	Exhibits.
	Exhibit 99.1. Monthly Interim Statement of The Kushner-Locke Company (the “Registrant”) for the calendar month from March 1, 2005 to March 31, 2005.
	Exhibit 99.2. Monthly Operating Report of the Registrant for the calendar month from March 1, 2005 to March 31, 2005.
	Exhibit 99.3. Monthly Interim Statement of the Registrant for the calendar month from April 1, 2005 to April 30, 2005.
	Exhibit 99.4. Monthly Operating Report of the Registrant for the calendar month from April 1, 2005 to April 30, 2005.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 5, 2005	THE KUSHNER-LOCKE COMPANY
	By:	/s/ Alice P. Neuhauser
		Alice P. Neuhauser
		Responsible Officer

EX-99.1

Exhibit 99.1

Office of the United States Trustee

In re:
The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION INTERIM STATEMENT

Page 1 of 3

Statement Number:	41
For the Period FROM:	3/1/2005
TO:	3/31/2005

			Collateral		Concentration
CASH ACTIVITY ANALYSIS (Cash Basis Only)			Account		Account
Balance before Statement #1				268,333.21		65,956.21
A.	Total Receipts per all Prior Interim Statements			6,659,544.77		5,235,916.40
B.	Less: Total Disbursements per all Prior Statements			5,441,903.55		5,238,068.77
C.	Beginning Balance			1,485,974.43		63,803.84
D.	Receipts during Current Period
	Description
	3/3/2005	Wire Transfer				45,000.00
	3/16/2005	Wire Transfer				35,000.00
	3/23/2005	Tango/City National		270,000.00
	3/23/2005	Tango/City National		270,000.00
	3/25/2005	Lifetime		18,333.34
	3/25/2005	A&E		232.52
	3/25/2005	Hamdon		892.00
	3/25/2005	Chris Corabi		75.00
	3/30/2005	Wire Transfer				35,000.00
	3/31/2005	interest		3,246.95
	TOTAL RECEIPTS THIS PERIOD			562,779.81		115,000.00		—		—
E.	Balance Available (C plus D)			2,048,754.24		178,803.84	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 41 Page 2 of 3

				Collateral		Concentration
CASH ACTIVITY ANALYSIS (Cash Basis Only)				Account		Account
F.	Less: Disbursements during Current Period:
	Date	Check No.	Payee/Purpose
	3/1/2005		ADP Taxes				10,856.29
	3/1/2005	8166	Payroll				1213.46
	3/1/2005	8167	Payroll				10365.10
	3/1/2005	8168	Payroll				1419.17
	3/1/2005	8169	Payroll				2510.53
	3/3/2005		Wire Transfer		45,000.00
	3/4/2005		ADP Fees				157.24
	3/11/2004		ADP Fees				97.24
	3/14/2005	38174	Federal Express				69.99
	3/14/2005	38175	Recall				1459.83
	3/14/2005	38176	Department Of Consumer Affairs				200.00
	3/14/2005	38177	Qwest Communications				67.06
	3/14/2005	38178	UPS Supply Chain Solutions, Inc.				69.80
	3/14/2005	38179	Bonded Services, Inc				6597.91
	3/14/2005	38180	Franchise Tax Board				800.00
	3/14/2005	38181	Franchise Tax Board				800.00
	3/14/2005	38182	Franchise Tax Board				800.00
	3/15/2005		ADP Taxes				8200.52
	3/15/2005	8170	Payroll				1213.46
	3/15/2005	8171	Payroll				10655.79
	3/15/2005	8172	Payroll				1419.16
	3/15/2005	8173	Payroll				2510.53
	3/16/2005		Wire Transfer		35,000.00
	3/18/2005		ADP Fees				10.00
	3/23/2005	38183	Clumeck, Stern, Schenkelburg & Getzo				4550.00
	3/23/2005	38184	KEVIN MARINO				440.56
	3/23/2005	38185	Blue Shield of California				373.00
	3/23/2005	38186	LPS				65.00
	3/23/2005	38187	Digital Post Services				414.54
	3/23/2005	38188	Arrowhead				29.38
	3/23/2005	38189	Accurate Express				15.30
	3/24/2005	38190	Health Net				3239.13
	3/25/2005		ADP Fees				97.24
	3/29/2005		ADP Taxes				9067.80
	3/29/2005	38191	New Beginnings Enterprises				3765.00
	3/29/2005	38192	Point 360				364.00
	3/29/2005	38193	GrapheeX Inc.				519.60
	3/29/2005	38194	SBC				361.07
	3/29/2005	38195	SBC				83.84
	3/29/2005	38196	Qwest Communications				52.00
	3/29/2005	38197	Doniger & Fetter				26.58
	3/29/2005	8174	Payroll				1213.46
	3/29/2005	8175	Payroll				11652.64
	3/29/2005	8176	Payroll				1419.18
	3/29/2005	8177	Payroll				2510.53
	3/30/2005		Wire Transfer		35,000.00
	TOTAL DISBURSEMENTS THIS PERIOD:				115,000.00		101,752.93		—		—
G.	Ending Balance (E less F)				1,933,754.24		77,050.91	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 41 Page 3 of 3

H.		(1	)	Collateral Account:
				a)	Depository Name and Location:	Chase Bank 1 Chase Manhattan Plaza, New York, NY 10081
				b)	Account Number:	323221556
		(2	)	Concentration Account:
				a)	Depository Name and Location:	Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024
				b)	Account Number:	1891935460
I:	Other monies on hand:

The Kushner Locke Company PWI account	1891215236	731.10
Bank of Scotland — Pinocchio	3516309	868,946.35	Pound Sterling	Time Deposit
Bank of Scotland — Basil	3516317	213,948.43	Pound Sterling	Time Deposit	(KL’ s interest is 50%)
Allied Pinocchio	10747301	—	Pound Sterling
Edge Entertainment	1891152710	172.89
European Films LTD	1890563818	7,051.58

I:  Other monies on hand (continued):

Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).

Joint Venture Accounts:

BLT Venture	178-71491-7	16,890.04
BLT Venture	16-524173-1101	330.45
KL MDP Sensation	60-066-930	17,694.61
KL\7 Venture	1890-69-6360	11,946.83
Denial Venture	1890-69-6501	72,553.08
Cracker LLC	1891-04-1665	732.79
Swing	323-518095	6,957.50

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice Neuhauser  

Debtor in Possession 

EX-99.2

Exhibit 99.2

Office of the United States Trustee

In re:
     The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	41	Page 1 of 2
For the Period FROM:	3/1/2005
TO:	3/31/2005

1	Profit and Loss Statement (Accrual Basis Only)
	A. Related to Business Operations
	Gross Sales		$	—
	Costs Related to Revenues (Film Cost Amortization)
	Gross Profit					—
	Less: Operating Expenses
	Officer Compensation	53,550
	Salaries and Wages — Other Employees	19,385
	Total Salaries and Wages			72,935
	Employee Benefits and Pensions			3,612
	Employer Payroll Taxes/Fees	3,655
	Other Taxes	2,400
	Total Taxes			6,055
	Rent and Lease Expense (including parking)	3,765
	Distribution/Delivery Expenses	1,453
	Interest Expense
	Insurance
	Automobile Expense/Mileage
	Utilities (incl. Phone, phone equipment, internet)	564
	Depreciation and Amortization
	Business Equipment Leases
	Business Expense reimbursement
	Storage Expense	8,058
	Supplies, Office Expenses, Photocopies, etc.	735
	Bad Debts
	Miscellaneous Operating Expenses
	Total Operating Expenses			97,176
	Net Gain/Loss from Business Operations					(97,176	)
	B. Not related to Business Operations
	Income
	Interest Income
	Other Non-Operating Revenues			—
	Gross Proceeds on Sale of Assets	—
	Less: Original Cost of Assets plus expenses of sale	—
	Net Gain/Loss on Sale of Assets			—
	Total Non-Operating Income					—
	Expenses Not Related to Business Operations
	Legal and Professional Service Fees			4,577
	Other Non-Operating Expenses (Board/Trustee fees)
	Total Non-Operating Expenses					4,577
	NET INCOME/(LOSS) FOR PERIOD				$	(101,753	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 41 Page 2 of 2

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts		Accounts
	Payable		Receivable
Current Under 30 days		—		—
Overdue 31-60 days		—		—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future		3,204		1,062,541
TOTAL		3,204		1,062,541

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2006		1/14/2006
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2006		2/14/2006
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2006		3/3/2005

6 Questions:

A.	Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?
	o Yes          Explain:
	x No
B.	Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?
	o Yes          Explain:
	x No

7	Statement on Unpaid Professional Fees (Postpetition Amounts Only)
	Total unpaid post-petition Professional Fees during the reporting period:          $ 302,409.57
8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice Neuhauser  

Debtor in Possession 

EX-99.3

Exhibit 99.3

Office of the United States Trustee

In re:
   The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION INTERIM STATEMENT

Page 1 of 3

Statement Number:	42
For the Period FROM:	4/1/2005
TO:	4/30/2005

			Collateral		Concentration
CASH ACTIVITY ANALYSIS (Cash Basis Only)			Account		Account
Balance before Statement #1				268,333.21		65,956.21
A.	Total Receipts per all Prior Interim Statements			7,222,324.58		5,350,916.40
B.	Less: Total Disbursements per all Prior Statements			5,556,903.55		5,339,821.70
C.	Beginning Balance			1,933,754.24		77,050.91
D.	Receipts during Current Period
	Description
	4/5/2005	Lifetime		16,666.67
	4/5/2005	Tanya Miller		200.00
	4/13/2005	Tango Entertainment		28,000.00
	4/13/2005	Tango Entertainment		28,000.00
	4/13/2005	Wire Transfer				165,000.00
	4/27/2005	Wire Transfer				140,000.00
	4/30/2005	interest		4,056.34
	TOTAL RECEIPTS THIS PERIOD			76,923.01		305,000.00		—		—
E.	Balance Available (C plus D)			2,010,677.25		382,050.91	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 42 Page 2 of 3

				Collateral		Concentration
				Account		Account
F.	Less: Disbursements during Current Period:
	Date	Check No.	Payee/Purpose
	4/1/2005		ADP Fees				157.24
	4/7/2005	38198	Bonded Services, Inc				6,597.91
	4/7/2005	38199	Irubin Consulting				300.00
	4/8/2005		ADP Fees				97.24
	4/12/2005		ADP Taxes				8,737.42
	4/12/2005	8178	Payroll				1,213.46
	4/12/2005	8179	Payroll				11,272.89
	4/12/2005	8180	Payroll				1,419.17
	4/12/2005	8181	Payroll				2,510.52
	4/13/2005		Wire Transfer		165,000.00
	4/15/2005		Service Charge				20.05
	4/15/2005		ADP Fees				30.00
	4/15/2005	38200	KEREN AMINIA				2,051.75
	4/15/2005	38201	Digital Post Services				382.33
	4/15/2005	38202	Recall				977.51
	4/15/2005	38203	Federal Express				40.69
	4/15/2005	38204	Bowne of Los Angeles, Inc				769.00
	4/15/2005	38205	Stutman Treister & Glatt				10,217.47
	4/15/2005	38205	Stutman Treister & Glatt				24,045.09
	4/15/2005	38205	Stutman Treister & Glatt				16,940.78
	4/15/2005	38205	Stutman Treister & Glatt				23,383.94
	4/15/2005	38205	Stutman Treister & Glatt				39,316.26
	4/15/2005	38205	Stutman Treister & Glatt				19,791.36
	4/22/2005		ADP Fees				97.24
	4/22/2005	38206	United States Trustee				3,750.00
	4/22/2005	38207	United States Trustee				250.00
	4/22/2005	38208	United States Trustee				250.00
	4/22/2005	38209	United States Trustee				250.00
	4/22/2005	38210	United States Trustee				250.00
	4/22/2005	38211	United States Trustee				250.00
	4/22/2005	38212	United States Trustee				250.00
	4/22/2005	38213	United States Trustee				250.00
	4/22/2005	38214	United States Trustee				250.00
	4/22/2005	38215	Blue Shield of California				373.00
	4/22/2005	38216	Arrowhead				16.20
	4/22/2005	38217	USI of Southern California				865.00
	4/22/2005	38218	Digital Post Services				36.29
	4/22/2005	38219	SBC				350.10
	4/22/2005	38220	SBC				82.91
	4/22/2005	38221	Bowne of Los Angeles, Inc				472.00
	4/22/2005	38224	Clumeck, Stern, Schenkelburg & Getzo				3,203.50
	4/26/2005	38225	Deluxe Media Management				192.00
	4/26/2005	38226	Accurate Express				55.10
	4/26/2005	38227	New Beginnings Enterprises				3,802.00
	4/26/2005	38228	Health Net				3,239.13
	4/26/2005		ADP Taxes				8,654.81
	4/26/2005	8182	Payroll				1,213.45
	4/26/2005	8183	Payroll				11,177.95
	4/26/2005	8184	Payroll				1,419.17
	4/26/2005	8185	Payroll				2,510.54
	4/27/2005		Wire Transfer		140,000.00
	4/29/2005		ADP Fees				204.92
	TOTAL DISBURSEMENTS THIS PERIOD:				305,000.00		213,987.39		—		—
G.	Ending Balance (E less F)				1,705,677.25		168,063.52	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 42 Page 3 of 3

H.		(1	)	Collateral Account:
				a)	Depository Name and Location:	Chase Bank 1 Chase Manhattan Plaza, New York, NY 10081
				b)	Account Number:		323221556
		(2	)	Concentration Account:
				a)	Depository Name and Location:	Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024
				b)	Account Number:		1891935460
I:	Other monies on hand:

The Kushner Locke Company PWI account	1891215236	731.10
Bank of Scotland — Pinocchio	3516309	872,363.33	Pound Sterling	Time Deposit
Bank of Scotland — Basil	3516317	214,720.69	Pound Sterling	Time Deposit	(KL’s interest is 50%)
Allied Pinocchio	10747301	—	Pound Sterling
Edge Entertainment	1891152710	172.89
European Films LTD	1890563818	7,051.58

I:  Other monies on hand (continued):

Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).

Joint Venture Accounts:

BLT Venture	178-71491-7	16,890.04
BLT Venture	16-524173-1101	330.45
KL MDP Sensation	60-066-930	17,689.61
KL\7 Venture	1890-69-6360	11,952.23
Denial Venture	1890-69-6501	72,597.80
Cracker LLC	1891-04-1665	732.79
Swing	323-518095	6,957.50

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice Neuhauser  

Debtor in Possession 

EX-99.4

Exhibit 99.4

Office of the United States Trustee

In re:
   The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively Consolidated with
Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01-
44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	42	Page 1 of 2
For the Period FROM:	4/1/2005
TO:	4/30/2005

1	Profit and Loss Statement (Accrual Basis Only)
	A. Related to Business Operations
	Gross Sales		$	—
	Costs Related to Revenues (Film Cost Amortization)
	Gross Profit					—
	Less: Operating Expenses
	Officer Compensation	35,700
	Salaries and Wages — Other Employees	12,923
	Total Salaries and Wages			48,623
	Employee Benefits and Pensions			3,612
	Employer Payroll Taxes/Fees	2,093
	Other Taxes
	Total Taxes			2,093
	Rent and Lease Expense (including parking)	3,802
	Distribution/Delivery Expenses	706
	Interest Expense
	Insurance	865
	Automobile Expense/Mileage
	Utilities (incl. Phone, phone equipment, internet)	733
	Depreciation and Amortization
	Business Equipment Leases
	Business Expense reimbursement	2,052
	Storage Expense	7,575
	Supplies, Office Expenses, Photocopies, etc.	16
	Bad Debts
	Miscellaneous Operating Expenses	1,261
	Total Operating Expenses			71,339
	Net Gain/Loss from Business Operations					(71,339	)
	B. Not related to Business Operations
	Income
	Interest Income
	Other Non-Operating Revenues			—
	Gross Proceeds on Sale of Assets	—
	Less: Original Cost of Assets plus expenses of sale	—
	Net Gain/Loss on Sale of Assets			—
	Total Non-Operating Income					—
	Expenses Not Related to Business Operations
	Legal and Professional Service Fees			136,898
	Other Non-Operating Expenses (Board/Trustee fees)			5,750
	Total Non-Operating Expenses					142,648
	NET INCOME/(LOSS) FOR PERIOD				$	(213,987	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 42 Page 2 of 2

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

	Accounts			Accounts
	Payable			Receivable
Current Under 30 days		—			—
Overdue 31-60 days		—			—
Overdue 61-90 days		—
Overdue 91-120 days		—
Overdue Over 121 days		—
Due in the Future		(0	)		1,705,875
TOTAL		(0	)		1,705,875

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2006		1/14/2006
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2006		2/14/2006
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		3/3/2006		3/3/2005

6 Questions:

     A. Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?

     o Yes          Explain:

     x No

     B. Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?

     o Yes          Explain:

     x No

7	Statement on Unpaid Professional Fees (Postpetition Amounts Only)
	Total unpaid post-petition Professional Fees during the reporting period:          $ 253,825.38
8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None. 9 Quarterly Fees:
	Paid

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice Neuhauser  

Debtor in Possession