EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm

Exhibit 99.1
 
UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW JERSEY

In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
MONTHLY OPERATING REPORT
File with Court and submit copy to United States Trustee within 20 days after end of month.


Submit copy of report to any official committee appointed in the case

REQUIRED DOCUMENTS
 
Form No.
Document
Attached
Explanation
Attached
Affidavit/Supplement
Attached
Schedule of Cash Receipts and Disbursements
 
MOR-1
P
   
Bank Reconciliation (or copies of debtor's bank reconciliation)
 
MOR-1a
P
   
Schedule of Professional Fees Paid
 
MOR-1b
P
   
Copies of bank statements
   
P
   
Cash disbursements journals
   
P
   
Statement of Operations
 
MOR-2
P
   
Balance Sheet
 
MOR-3
P
   
Status of Postpetition Taxes
 
MOR-4
P
   
Copies of IRS Form 6123 or payment receipt
         
Copies of tax returns filed during reporting period
   
P
   
Summary of Unpaid Postpetition Debts
 
MOR-4
P
   
Listing of aged accounts payable
 
MOR-4
P
   
Accounts Receivable Reconciliation and Aging
 
MOR-5
N/A
   
Debtor Questionnaire
 
MOR-5
P
   

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.

         
Signature of Debtor
   
Date
 
         
         
Signature of Joint Debtor
   
Date
 
         
 /s/ Daryl Holcomb
   
June 9, 2011
 
Signature of Authorized Individual *
   
Date
 
         
Daryl K. Holcomb
   
Vice President & Chief Financial Officer
 
Printed Name of Authorized Individual
   
Title of Authorized Individual
 

* 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.

 
 

 
 
In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

   
Bank Accounts
   
Current Month
   
Cumulative Filing to Date
 
   
Operating
   
Payroll
   
Tax
   
Other
   
Actual
   
Projected
   
Actual
   
Projected
 
                                                 
Cash Beginning of Month
  $ 304,659.13     $ 1,000.00     $ 100.00     $ 71.26     $ 305,830.39     $ -     $ 36,840.24     $ -  
                                                                 
Receipts
 
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
 
Cash Sales
  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
Accounts Receivable
                                    -               -          
Loans and Advances
                                    -               -          
Sale of Assets
                                    -               -          
Other (see below)
    -                               -               12,715.45          
Transfers (From DIP Accts.)
    379,641.70       21,201.41       15,574.62       -       416,417.73               2,784,532.32          
                                                                 
Total Receipts
  $ 379,641.70     $ 21,201.41     $ 15,574.62     $ -     $ 416,417.73     $ -     $ 2,797,247.77     $ -  
                                                                 
                                                                 
                                                                 
Disbursements
 
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
 
Net Payroll
  $ -     $ 21,201.41     $ -             $ 21,201.41             $ 198,822.56     $ -  
Payroll Taxes
    63.22               15,574.62               15,637.84               89,948.54          
Sales, Use, & Other Taxes
    894.41                               894.41               90,929.41          
Inventory Purchases
                                    -               -          
Secured/Rental/Leases
    5,490.60                               5,490.60               34,794.80          
Insurance
    12,771.20                               12,771.20               147,762.01          
Administrative
    9,954.27                               9,954.27               69,182.32          
Selling
                                    -               -          
Other (see below)
    15,319.97                               15,319.97               69,302.49          
                                                                 
Owner Draw *
                                    -               -          
Transfers (To DIP Accts)
    36,776.03                               36,776.03               1,219,159.24          
                                                                 
Professional Fees
    34,658.16                               34,658.16               338,792.41          
U.S. Trustee Quarterly Fees
    4,875.00                               4,875.00               10,725.00          
Court Costs
                                    -               -          
                                                                 
Total Disbursements
  $ 120,802.86     $ 21,201.41     $ 15,574.62     $ -     $ 157,578.89     $ -     $ 2,269,418.78     $ -  
                                                                 
                                                                 
Net Cash Flow
  $ 258,838.84     $ -     $ -     $ -     $ 258,838.84     $ -     $ 527,828.99     $ -  
(Receipts Less Disbursements)
                                                               
                                                                 
                                                                 
                                                                 
Cash - End of Month
  $ 563,497.97     $ 1,000.00     $ 100.00     $ 71.26     $ 564,669.23     $ -     $ 564,669.23     $ -  

* Compensation to Sole Proprietors for Services Rendered to Bankruptcy Estate

THE FOLLOWING SECTION MUST BE COMPLETED
Disbursements for Calculating U.S. Trustee Quarterly Fees: (From Current Month Actual Column)

Total Disbursements
  $ 157,578.89  
Less: Transfers to Debtor in Possession Accounts
    (36,776.03 )
Plus: Estate Disbursements Made by Outside Sources (i.e. from escrow accounts)
       
Total Disbursements for Calculating U.S. Trustee Quarterly Fees
  $ 120,802.86  

Other Receipts:
                               
Refund of bank fees
    $ -     $ -     $ -     $ -     $ -  
Refund of insurance premium
      -                               -  
Funds deposited for RA Liquidating Corp in error
      -                               -  
      $ -     $ -     $ -     $ -     $ -  
Other Expense :
                                         
Bank Fees
    $ -     $ -     $ -     $ -     $ -  
 401K       3,190.97                               3,190.97  
Administrative claim
      2,529.00                               2,529.00  
Directors Fees
      9,600.00                               9,600.00  
        15,319.97     $ -     $ -     $ -     $ 15,319.97  
 
 
 

 
 
In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
 
   
Tax
   
Operating
   
Payroll
   
Other
 
   
Capital One Bank
   
Capital One Bank
   
Capital One Bank
   
Petty Cash
 
     *      *       *      N/A  
                                                         
Balance Per Book
          $ 100.00             $ 563,497.97             $ 1,000.00             $ 71.26  
                                                                 
Bank Balance
          $ 100.00             $ 574,374.36             $ 10,971.70               N/A  
(+) Deposits in Transit (Attach List)
            -               -               -               -  
(-) Outstanding Checks (Attach List)
            -               (10,876.39 )             (9,971.70 )             -  
Other (Attach Explanation)
            -               -               -               -  
Adjusted Bank Balance *
          $ 100.00             $ 563,497.97             $ 1,000.00               N/A  
* Adjusted bank balance must equal
balance per books
                                                               
                                                                 
                                                                 
Deposits in Transit
 
Date
   
Amount
   
Date
   
Amount
   
Date
   
Amount
   
Date
   
Amount
 
            $ -             $ -             $ -             $ -  
                                                                 
                                                                 
                                                                 
            $ -             $ -             $ -             $ -  
                                                                 
                                                                 
                                                                 
Checks Outstanding
 
Ck.#
   
Amount
   
Ck.#
   
Amount
   
Ck.#
   
Amount
   
Ck.#
   
Amount
 
            $ -       2015     $ 1,400.00       3038     $ 553.49             $ -  
                      2137       1,600.00       3039       406.50                  
                      2146       2,650.00       3040       559.47                  
                      2147       86.72       3043       1,539.05                  
                      2149       79.67       3044       4,803.86                  
                      2150       4,875.00       3045       2,109.33                  
                      2151       185.00                                  
                                                                 
            $ -             $ 10,876.39             $ 9,971.70             $ -  
                                                                 
                                                                 
Other
                                                               
            $ -                                                  
                                                                 
                                                                 
            $ -             $ -             $ -             $ -  
 
*  Account number has been redacted

 
 

 
 
In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
This schedule is to include all retained professional payments from case inception to current month.
 
   
Period
 
Amount
     
Check
 
Amount Paid
   
Year-To-Date
 
Payee
 
Covered
 
Approved
 
Payor
 
Number
 
Date
 
Fees
   
Expenses
   
Fees
   
Expenses
 
SSG Capital
      $ -               $ -     $ -     $ 30,000.00     $ 5,880.52  
                                                       
Cole, Schotz, Meisel, Forman & Leonard, P.A.
 
2/01 - 2/28/11
    18,906.50  
RCLC
 
MT040511
 
04/05/11
    14,479.09       807.64       138,331.16       6,987.50  
   
3/01 - 3/31/11
    23,575.33  
RCLC
 
MT042611
 
04/26/11
    18,671.60       235.83                  
                                                       
Demetrius & Company, LLC
        580.00         2122  
04/05/11
    464.00               9,122.12       -  
                                                         
J.H. Cohn LLP
                                            66,605.22       645.64  
                                                         
                                                         
Lowenstein Sandler PC
                                            79,276.23       2,444.02  
                                                         
                                                         
        $ 43,061.83                 $ 33,614.69     $ 1,043.47     $ 323,334.73     $ 15,957.68  
 
 
 

 
 
In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
STATEMENT OF OPERATIONS
(Income Statement)
Accrual Basis
 
         
Cumulative
 
Revenues
 
Month
   
Filing to Date
 
Gross Revenues
  $ 96,034.00     $ 1,050,948.30  
Less:  Returns and Allowances
               
Net Revenue
    96,034.00       1,050,948.30  
                 
Cost of Goods Sold
               
Beginning Inventory
            -  
Add:  Purchases
            -  
Add:  Cost of Labor
            -  
Add:  Other Costs (attach schedule)
            -  
Less:  Ending Inventory
            -  
Cost of Goods Sold
    -       -  
Gross Profit
    96,034.00       1,050,948.30  
                 
Operating Expenses
               
Advertising
               
Auto and Truck Expense
    -       2,413.40  
Bad Debts
            -  
Contributions
            -  
Employee Benefits Programs
    4,201.45       50,482.02  
Insider Compensation *
    6,500.00       47,245.99  
Insurance
    6,300.37       196,386.37  
Management Fees/Bonuses
            -  
Office Expense
    3,830.89       16,932.29  
Pension & Profit-Sharing Plans
            (2,056.16 )
Repairs and Maintenance
            8,246.71  
Rent and Lease Expense
    3,350.60       29,966.05  
Salaries/Commissions/Fees
    23,577.95       244,022.67  
Supplies
    37.98       1,271.73  
Taxes - Payroll
    3,327.08       26,193.69  
Taxes - Real Estate
            -  
Taxes - Other
            -  
Travel and Entertainment
    185.00       5,969.63  
Utilities
    -       2,604.56  
Other (attach schedule)
    4,285.45       29,034.73  
Total Operating Expenses Before Depreciation
    55,596.77       658,713.68  
Depreciation/Depletion/Amortization
            -  
Net Profit (Loss) Before Other Income & Expenses
    40,437.23       392,234.62  
                 
Other Income and Expenses
               
Other Income (attach schedule)
    (2,866.50 )     (24,510.25 )
Interest Expense
    3,192.10       27,184.76  
Other Expense (attach schedule)
    1,121.08       225,250.01  
Net Profit (Loss) Before Reorganization Items
    38,990.55       164,310.10  
                 
Reorganization Items
               
Professional Fees
    43,891.62       414,357.19  
U.S. Trustee Quarterly Fees
    4,875.00       10,725.00  
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
            -  
Gain (Loss) from Sale of Equipment
            -  
Other Reorganization Expenses (attach schedule)
    -       75.00  
Total Reorganization Expenses
    48,766.62       425,157.19  
Income Taxes - Deferred & allocated among affiliates
    -       (620,580.00 )
Income Taxes - Current
            89,960.00  
Net Profit (Loss)
  $ (9,776.07 )   $ 269,772.91  
 
 
 

 
 
In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
STATEMENT OF OPERATIONS - continuation sheet

         
Cumulative
 
Breakdown of "Other" Category
 
Month
   
Filing to Date
 
             
Other Costs
           
None
  $ -     $ -  
                 
                 
                 
                 
    $ -     $ -  
Other Operational Expenses
               
Stock Transfers
  $ -     $ 14,188.41  
Information Release Cost
    4,285.45       6,998.75  
Other Stock Related Expense
            1,000.00  
Bank Service Fees
            6,788.17  
Penalties & Late Charges
            59.40  
                 
    $ 4,285.45     $ 29,034.73  
                 
Other Income
               
Dividend Income - Split Dollar Insurance
  $ 2,866.50     $ 24,365.25  
Other
    -       145.00  
                 
                 
                 
                 
    $ 2,866.50     $ 24,510.25  
                 
Other Expenses
               
Auditing & Tax Fees
  $ -     $ 24,375.00  
Rights Plan Amortization
    330.08       2,805.60  
Legal Fee - Accrual
            12,250.00  
Other Professional Fees
    791.00       18,250.50  
Other Professional Fees - Getzler
            167,522.00  
Other
            46.91  
                 
                 
                 
    $ 1,121.08     $ 225,250.01  
                 
Other Reorganization Expenses
               
New Jersey Business Gateway Service
          $ 75.00  
                 
                 
                 
                 
    $ -     $ 75.00  

Reorganization Items - Interest Earned on Accumulated Cash from Chapter 11:
Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding.

 
 

 
 
In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
BALANCE SHEET
Accrual Basis

             
Assets
 
Book Value at End of
Current Reporting Month
   
Book Value on
Petition Date
 
Current Assets
           
Unrestricted Cash and Equivalents
  $ 564,669.23     $ 36,840.24  
Restricted Cash and Equivalents (see continuation sheet)
               
Accounts Receivable (Net)
               
Notes Receivable
               
Inventories
               
Prepaid Expenses
    14,038.02       242,091.94  
Professional Retainers
    53,117.00       54,703.60  
Other Current Assets (attach schedule)
    247,775.00       250,768.00  
Total Current Assets
    879,599.25       584,403.78  
                 
Property and Equipment
               
Real Property and Improvements
               
Machinery and Equipment
               
Furniture, Fixtures and Office Equipment
               
Leasehold Improvements
               
Vehicles
               
Less Accumulated Depreciation
               
Total Property & Equipment
    -       -  
                 
Other Assets
               
Loans to Insiders *
               
Other Assets (see schedule)
    15,876,885.77       17,107,507.81  
Total Other Assets
    15,876,885.77       17,107,507.81  
                 
Total Assets
  $ 16,756,485.02     $ 17,691,911.59  
                 
Liabilities And Owner Equity
 
Book Value at End of
Current Reporting Month
   
Book Value on
Petition Date
 
Liabilities Not Subject to Compromise (Postpetition)
               
Accounts Payable
  $ 6,709.56     $ -  
Taxes Payable (refer to Form MOR-4)
    5,699.71          
Wages Payable
               
Notes Payable
               
Rent/Leases - Building/Equipment
               
Secured Debt / Adequate Protection Payments
               
Professional Fees
    120,103.42          
Amounts Due to Insiders * (defined in 11 U.S.C. Section 101(31))
    -          
Other Postpetition Liabilities (attach schedule)
    41,186.01          
Total Postpetition Liabilities
    173,698.70       -  
Liabilities Subject to Compromise
               
Secured Debt
    -       2,005,050.59  
Priority Debt
    39,362.51       51,133.31  
Unsecured Debt
    10,131,963.69       9,494,040.48  
Total Pre-Petition Liabilities
    10,171,326.20       11,550,224.38  
Total Liabilities
    10,345,024.90       11,550,224.38  
                 
Owner Equity
               
Capital Stock
    5,172,577.50       5,172,577.50  
Additional Paid-In Capital
    30,006,795.83       30,006,795.83  
Partners' Capital Account
               
Owner's Equity Account
               
Retained Earning - Pre-Petition
    (27,441,016.10 )     (27,441,016.10 )
Retained Earning - Postpetition
    269,772.91          
Adjustments to Owner Equity (attach schedule)
    (1,596,670.02 )     (1,596,670.02 )
Postpetition contributions (Distributions) (Draws) (attach schedule)
               
Net Owner Equity
    6,411,460.12       6,141,687.21  
                 
Total Liabilities and Owners' Equity
  $ 16,756,485.02     $ 17,691,911.59  
 
 
 

 
 
In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
BALANCE SHEET - continuation sheet

Assets
 
Book Value at End of
Current Reporting Month
   
Book Value on
Petition Date
 
Other Current Assets
           
Current Deferred Tax Asset
  $ 247,775.00     $ 250,768.00  
                 
                 
                 
    $ 247,775.00     $ 250,768.00  
Other  Assets
               
Investment is Subsidiaries
  $ 8,972,480.35     $ 8,972,480.35  
Intercompany Receivables - Prometcor
    4,686,643.53       4,686,643.53  
Intercompany Receivables - RCPC Liquidating
    42,682.00       999,740.57  
Intercompany Receivables - RA Liquidating
    53,352.00       -  
Deferred Sale costs - Ronson Aviation
    -       348,601.95  
Non-Current Deferred Tax Asset
    2,083,890.68       2,034,742.68  
Rights Plan
    1,320.18       4,125.86  
Cash Surrender Value - Life Insurance
    36,517.03       61,172.87  
    $ 15,876,885.77     $ 17,107,507.81  
                 
             
Liabilities And Owner Equity
 
Book Value at End of
Current Reporting Month
   
Book Value on
Petition Date
 
Other Postpetition Liabilities
               
Accrued Federal Income Tax
  $ -     $ -  
Accrued interest
    9,088.13          
Accrued vacation
    9,591.49          
Accrued audit costs
    15,716.88          
Employee 401K deferrals
    -          
Other accrued expenses
    6,789.51          
    $ 41,186.01     $ -  
                 
Adjustments to Owner Equity
               
Treasury Stock
  $ (1,596,670.02 )   $ (1,596,670.02 )
                 
                 
                 
    $ (1,596,670.02 )   $ (1,596,670.02 )
                 
Postpetition contributions (Distributions) (Draws) (attach schedule)
               
                 
                 
                 
                 
    $ -     $ -  
 
 
 

 
 
In re
RCLC, Inc.
 
Case No.
 
10-35313-MBK
     
Reporting Period
 
4/01/11 - 4/30/11
 
STATUS OF POSTPETITION TAXES
 
   
Beginning
   
Amount Withheld
               
Check No.
   
Ending
 
   
Tax Liability
   
or Accrued
   
Amount Paid
   
Date Paid
   
or EFT
   
Tax Liability
 
Federal
                                   
Withholding
  $ 2,123.00     $ 4,349.00     $ (4,362.00 )  
4/5, 4/13, 4/19, 4/27
   
EFT
    $ 2,110.00  
FICA-Employee
    872.17       1,691.31       (1,841.23 )  
4/5, 4/13, 4/19, 4/27
   
EFT
      722.25  
FICA-Employer
    1,180.89       2,290.01       (2,492.97 )  
4/5, 4/13, 4/19, 4/27
   
EFT
      977.93  
Unemployment
    280.00       -       (63.22 )     4/5       2127       216.78  
Income
    -       -       -                       -  
Other:
    -                                       -  
Total Federal Taxes
  $ 4,456.06     $ 8,330.32     $ (8,759.42 )                   $ 4,026.96  
                                                 
State and Local
                                               
Withholding
    491.00       935.36       (954.05 )  
4/5, 4/13, 4/19, 4/27
   
EFT
      472.31  
Sales
    -                                       -  
Excise
    -                                       -  
Unemployment
    4,504.08       1,330.67       (4,851.67 )     4/27    
EFT
      983.08  
Real Property
    -                                       -  
Personal Property
    -                                       -  
Income & franchise
    -       -       -                       -  
Other:
    614.14       675.92       (1,072.70 )     4/27    
EFT
      217.36  
Total State and Local
  $ 5,609.22     $ 2,941.95     $ (6,878.42 )                   $ 1,672.75  
                                                 
Total Taxes
  $ 10,065.28     $ 11,272.27     $ (15,637.84 )                   $ 5,699.71  
                                                 
                                                 
SUMMARY OF UNPAID POSTPETITION DEBTS
                                                 
Attached listing of accounts payable
                                               
   
Current
    0-30     31-60     61-90    
Over 90
   
Total
 
Accounts Payable
  $ 4,492.52     $ 2,217.04     $ -     $ -