EX-99.2 3 ex99_2.htm EXHIBIT 99.2 ex99_2.htm

Exhibit 99.2
 
UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW JERSEY

In re
RCPC Liquidating Corp
 
Case No.
 
10-35318-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
X
   
Bank Reconciliation (or copies of debtor's bank reconciliation)
MOR-1a
X
   
Schedule of Professional Fees Paid
MOR-1b
X
   
Copies of bank statements
 
X
   
Cash disbursements journals
 
None
   
Statement of Operations
MOR-2
X
   
Balance Sheet
MOR-3
X
   
Status of Postpetition Taxes
MOR-4
X
   
Copies of IRS Form 6123 or payment receipt
 
N/A
   
Copies of tax returns filed during reporting period
 
None
   
Summary of Unpaid Postpetition Debts
MOR-4
X
   
Listing of aged accounts payable
MOR-4
None
   
Accounts Receivable Reconciliation and Aging
MOR-5
X
   
Debtor Questionnaire
MOR-5
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.

     
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
RCPC Liquidating Corp
 
Case No.
 
10-35318-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
  $ 1,635,251.27     $ 100.00     $ 100.00     $ -     $ 1,635,451.27     $ -     $ 55,407.50     $ -  
                                                                 
Receipts
 
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
 
Cash Sales
  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
Accounts Receivable
                                    -                          
Loans and Advances
                                    -                          
Sale of Assets
                                    -                          
Other (Attach List)
    -                               -               3,552,273.86          
Transfers (From DIP Accts.)
    -               -               -               257,521.61          
                                                                 
Total Receipts
  $ -     $ -     $ -     $ -     $ -     $ -     $ 3,809,795.47     $ -  
                                                                 
                                                                 
                                                                 
Disbursements
 
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
 
Net Payroll
  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
Payroll Taxes
                                    -               229.51          
Sales, Use, & Other Taxes
                                    -               5,318.00          
Inventory Purchases
                                    -               -          
Secured/Rental/Leases
                                    -               -          
Insurance
                                    -               -          
Administrative
    17.85                               17.85               846.80          
Selling
                                    -               -          
Other (Attach List)
    -                               -               135,869.00          
Fee to NJDEP
                                    -               2,385.00          
Owner Draw *
                                    -               -          
Transfers (To DIP Accts)
    185,708.70                               185,708.70               2,009,284.31          
                                      -               -          
Professional Fees
    34,194.16                               34,194.16               293,789.79          
U.S. Trustee Quarterly Fees
    1,625.00                               1,625.00               3,575.00          
Court Costs
                                    -               -          
                                                                 
Total Disbursements
  $ 221,545.71     $ -     $ -     $ -     $ 221,545.71     $ -     $ 2,451,297.41     $ -  
                                                                 
                                                                 
Net Cash Flow
                                                               
(Receipts Less Disbursements)
    (221,545.71 )     -       -       -       (221,545.71 )             1,358,498.06          
                                                                 
                                                                 
                                                                 
Cash - End of Month
  $ 1,413,705.56     $ 100.00     $ 100.00     $ -     $ 1,413,905.56     $ -     $ 1,413,905.56     $ -  

* 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
  $ 221,545.71  
    Less: Transfers to Debtor in Possession Accounts
    (185,708.70 )
*  Plus: Estate Disbursements Made by Outside Sources (i.e. from escrow accounts)
    -  
Total Disbursements for Calculating U.S. Trustee Quarterly Fees
  $ 35,837.01  

*  In accordance with the terms of the pre-petition sale of substantially all of its assets, the Debtor entered into a pre-petition escrow agreement with the buyer, setting up an escrow account, pursuant to which the buyer and the Debtor, as seller, are permitted to draw certain sums therefrom, solely to the extent provided in that agreement.  While the Debtor has a residual interest in the escrow account (which residual interest is property of the estate), the escrow account and the funds therein are not property of the Debtor's estate and the Debtor does not control the release of the funds therein.  Accordingly, the Debtor submits that distributions from the escrow account, which are made by a disbursing agent and not the Debtor, should not be used in calculating the U.S. Trustee Quarterly Fee.  For purposes of disclosure, however, the Debtor discloses that during the reporting period, the disbursing agent, in accordance with the terms of the escrow agreement, no funds were disbursed from the funds held in that escrow account.

Other Receipts:
                 
Reinstatement of custodial funds by
Wells Fargo
  $ -     $ -     $ 2,527,566.71  
Deposit from escrow account
    -       -       1,024,478.47  
Void June check not cashed
    -       -       228.68  
Total
  $ -     $ -     $ 3,552,273.86  
                         
Other Disbursements:
                       
Proceeds allocated to RCC, Inc.
  $ -     $ -     $ 135,869.00  
 
 
 

 
 
In re
RCPC Liquidating Corp
 
Case No.
10-35318-MBK
     
Reporting Period
4/01/11 - 4/30/11
 
 
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
 
 
Operating
  Payroll    Tax   
 
Capital One Bank
 
Capital One Bank
 
Capital One Bank
 
 
*
 
*
 
*
 
                         
Balance Per Book
    $ 1,413,705.56       $ 100.00       $ 100.00  
                               
Balance Per Bank
    $ 1,415,348.41       $ 100.00       $ 100.00  
(+) Deposits in Transit (Attach List)
      -         -         -  
(-) Outstanding Checks (Attach List)
      (1,642.85 )       -         -  
Other (Attach Explanation)
                -         -  
Adjusted Bank Balance *
    $ 1,413,705.56       $ 100.00       $ 100.00  
* Adjusted bank balance must equal
                             
balance per books
                             
                               
                               
                               
Deposits in Transit
Date
 
Amount
 
Date
 
Amount
 
Date
 
Amount
 
      $ -       $ -       $ -  
                               
                               
                               
      $ -       $ -       $ -  
                               
                               
Checks Outstanding
Ck.#
 
Amount
 
Ck.#
 
Amount
 
Ck.#
 
Amount
 
    301   17.85               $ -  
    3015     1,625.00                      
                               
                               
                               
                               
                               
                               
      1,642.85             $ -  
                               
                               
Other
                             
      -             $ -  
                               
                               
                               
                               
      -             $ -  
 
*  Account number has been redacted
 
 
 

 
 
In re
RCPC Liquidating Corp
 
Case No.
10-35318-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
 
                                             
Cole, Schotz, Meisel,etc.
 
2/1 - 2/28/11
  $ 18,905.50  
RCPC
 
MT040511
 
04/05/11
  $ 14,479.09     $ 807.64       138561.26     $ 7,085.01  
    3/1 - 3/31/11     23,575.33   RCPC   MT042611   04/26/11     18,671.60     235.83                  
                                                       
J.H. Cohn LLP
                                          66,605.23       145.64  
                                                       
                                                       
Lowenstein Sandler PC
                                          79,276.23       2,444.02  
                                                       
                                                       
        $ 42,480.83               $ 33,150.69     $ 1,043.47     $ 284,442.72     $ 9,674.67  
 
 
 

 

In re
RCPC Liquidating Corp
 
Case No.
 
10-35318-MBK
     
Reporting Period
4/01/11 - 4/30/11

STATEMENT OF OPERATIONS
(Income Statement)
Accrual Basis

Revenues
 
Month
   
Cumulative
Filing to Date
 
Gross Revenues
  $ -     $ -  
Less:  Returns and Allowances
               
Net Revenue
    -       -  
                 
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
    -       -  
                 
Operating Expenses
               
Advertising
               
Auto and Truck Expense
               
Bad Debts
               
Contributions
               
Employee Benefits Programs
               
Insider Compensation *
               
Insurance
            70,104.87  
Management Fees
    42,682.00       350,507.56  
Office Expense
            157.30  
Pension & Profit-Sharing Plans
               
Repairs and Maintenance
               
Rent and Lease Expense
               
Salaries/Commissions/Fees
               
Supplies
               
Taxes - Payroll
            229.51  
Taxes - Real Estate
               
Taxes - Other
            120.00  
Travel and Entertainment
               
Utilites
               
Other (attach schedule)
    17.85       659.51  
Total Operating Expenses Before Depreciation
    42,699.85       421,778.75  
Depreciation/Depletion/Amortization
               
Net Profit(Loss) Before Other Income & Expenses
    (42,699.85 )     (421,778.75 )
                 
Other Income and Expenses
               
Other Income (attach schedule)
    (23.83 )     (1,574.19 )
Interest Expense
            6.65  
Other Expense (attach schedule)
    -       (261,574.79 )
      (23.83 )     (263,142.33 )
                 
Net Profit (Loss) Before Reorganization Items
    (42,676.02 )     (158,636.42 )
                 
Reorganization Items
               
Professional Fees
    43,139.65       411,694.44  
U.S. Trustee Quarterly Fees
    1,625.00       3,575.00  
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
               
Gain (Loss) from Sale of Equipment
               
Other Reorganization Expenses (attach schedule)
               
Total Reorganization Expenses
    44,764.65       415,269.44  
Income Taxes - Deferred & Allocation
    -       (441,776.00 )
Income Taxes - Current
            5,318.00  
Net Profit (Loss)
  $ (87,440.67 )   $ (137,447.86 )
 
 
 

 
 
In re
RCPC Liquidating Corp
 
Case No.
 
10-35318-MBK
     
Reporting Period
4/01/11 - 4/30/11
 
STATEMENT OF OPERATIONS - continuation sheet

Breakdown of "Other" Category
 
Month
   
Cumulative
Filing to Date
 
             
Other Costs
           
    $ -     $ -  
                 
                 
                 
                 
    $ -     $ -  
Other Operational Expenses
               
Miscellaneous administrative expense
  $ 17.85     $ 117.85  
Escrow fees
            541.66  
                 
                 
                 
    $ 17.85     $ 659.51  
Other Income
               
Interest income - escrow accounts
  $ 23.83     $ 1,574.19  
                 
                 
                 
                 
    $ 23.83     $ 1,574.19  
Other Expenses
               
Bank Fees
  $ -     $ 195.21  
Reduction in Bank Fees - Wells Fargo
    -       (25,000.00 )
Reduction in Legal Fees - Greenberg Traurig
    -       (25,000.00 )
Adjustment in Consulting Fees - Getzler Henrich
    -       (211,770.00 )
                 
    $ -     $ (261,574.79 )
Other Reorganization Expenses
               
    $ -     $ -  
                 
                 
                 
                 
    $ -     $ -  

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
RCPC Liquidating Corp
 
Case No.
10-35318-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
  $ 1,413,905.56     $ 55,407.50  
Restricted Cash and Equivalents (see continuation sheet)
    250,089.30       1,317,411.24  
Accounts Receivable (Net)
               
Notes Receivable
               
Inventories
               
Prepaid Expenses
    8,973.52       8,973.52  
Professional Retainers
               
Other Current Assets (attach schedule)
    30,347.00       22,721.00  
Total Current Assets
    1,703,315.38       1,404,513.26  
                 
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)
    2,245,877.46       3,168,615.99  
Total Other Assets
    2,245,877.46       3,168,615.99  
                 
Total Assets
  $ 3,949,192.84     $ 4,573,129.25  

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
  $ 118.75     $ -  
Taxes Payable (refer to Form MOR-4)
               
Wages Payable
               
Notes Payable
               
Rent/Leases - Building/Equipment
               
Secured Debt / Adequate Protection Payments
               
Professional Fees
    117,905.43          
Amounts Due to Insiders *
               
Other Postpetition Liabilities (attach schedule)
    42,682.00          
Total Postpetition Liabilities
    160,706.18       -  
Liabilities Subject to Compromise
               
Secured Debt
    -       1,940.56  
Priority Debt
    -       1,022.54  
Unsecured Debt
    2,598,934.70       3,243,166.33  
Total Pre-Petition Liabilities
    2,598,934.70       3,246,129.43  
Total Liabilities
    2,759,640.88       3,246,129.43  
                 
Owner Equity
               
Capital Stock
    100.00       100.00  
Additional Paid-In Capital
    1,250,000.00       1,250,000.00  
Partners' Capital Account
               
Owner's Equity Account
               
Retained Earning - Pre-Petition
    74,167.82       74,167.82  
Retained Earning - Postpetition
    (137,447.86 )        
Adjustments to Owner Equity (attach schedule)
    2,732.00       2,732.00  
Postpetition contributions (Distributions) (Draws) (attach schedule)
               
Net Owner Equity
    1,189,551.96       1,326,999.82  
                 
Total Liabilities and Owners' Equity
  $ 3,949,192.84     $ 4,573,129.25  
 
 
 

 
 
In re
RCPC Liquidating Corp
 
Case No.
10-35318-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
           
Deferred income tax assets
  $ 30,347.00     $ 22,721.00  
                 
                 
                 
    $ 30,347.00     $ 22,721.00  
Other  Assets
               
Account receivable - RCC, Inc.
  $ 399,075.89     $ 263,206.89  
Account receivable - RA Liquidating Corp
    95,854.95       2,473,273.07  
Account receivable - RCLC, Inc.
    480,596.59          
Deferred income tax assets
    1,270,350.03       432,136.03  
                 
    $ 2,245,877.46     $ 3,168,615.99  
                 
                 
Liabilities And Owner Equity
 
Book Value at End of
Current Reporting Month
   
Book Value on Petition Date
 
Other Postpetition Liabilities
               
Due to RCLC, Inc.
  $ 42,682.00     $ -  
Due to RA Liquidating Corp
    -          
Due to RCC, Inc.
    -          
                 
                 
                 
    $ 42,682.00     $ -  
                 
Adjustments to Owner Equity
               
Accum other comprehensive loss
  $ 2,732.00     $ 2,732.00  
                 
                 
                 
    $ 2,732.00     $ 2,732.00  
                 
Postpetition contributions (Distributions) (Draws) (attach schedule)
         
                 
                 
                 
                 
    $ -     $ -  
 
 
 

 
 
In re
RCPC Liquidating Corp
 
Case No.
 
10-35318-MBK
     
Reporting Period
 
4/01/11 - 4/30/11

STATUS OF POSTPETITION TAXES

   
Beginning
Tax Liability
   
Amount Withheld
or Accrued
   
Amount Paid
 
Date Paid
 
Check No.
 or EFT
 
Ending
Tax Liability
 
Federal
                             
Withholding
  $ -     $ -     $ -           $ -  
FICA-Employee
                                  -  
FICA-Employer
                                  -  
Unemployment
    0                             -  
Income
                                  -  
Other:
                                  -  
Total Federal Taxes
    -       -       -             -  
                                       
State and Local
                                     
Withholding
                                  -  
Sales
                                  -  
Excise
                                  -  
Unemployment
                                  -  
Real Property
                                  -  
Personal Property
                                  -  
Income
                                  -  
Franchise
                                  -  
Other:
                                  -  
Total State and Local
    -       -       -             -  
                                       
Total Taxes
  $ -     $ -     $ -           $ -  

SUMMARY OF UNPAID POSTPETITION DEBTS

Attach aged listing of accounts payable
                                   
   
Current
    0-30     31-60     61-90    
Over 90
   
Total
 
Accounts Payable (EWMA)
  $ -     $ -     $ -     $ 118.75     $ -     $ 118.75  
Wages Payable
                                               
Taxes Payable
                                            -  
Rent/Leases-Building
                                               
Rent/Leases-Equipment
                                               
Secured Debt/Adequate Protection Payments
                                               
Professional Fees
    68,139.62       18,809.95       23,622.02       7,001.59       332.25       117,905.43  
Amounts Due to Insiders *
                                               
Other:  Due to affiliated companies
    42,682.00                                       42,682.00  
Other:
                                               
Total Postpetition Debts
  $ 110,821.62     $ 18,809.95     $ 23,622.02     $ 7,120.34     $ 332.25     $ 160,706.18  
 
 
 

 

In re
RCPC Liquidating Corp
 
Case No.
10-35318-MBK
     
Reporting Period
4/01/11 - 4/30/11

 
ACCOUNTS RECEIVABLE RECONCILING AND AGING
 
Accounts Receivable Reconciliation
 
Amount
 
Total Accounts Receivable at the beginning of the reporting period
  $ -          
(+) Amounts billed during the period
    -          
(-) Amounts collected during the period
    -          
Total Accounts Receivable at the end of the reporting period
           -  
                 
Accounts Receivable Aging
 
Amount
 
  0 – 30 days old
    -          
31 – 60 days old
    -          
61 – 90 days old
    -          
    91 + days old
    -          
Total Accounts Receivable
          -  
Amounts considered uncollectible (Bad Debt)
               
Accounts Receivable (Net)
          -  
 
DEBTOR QUESTIONNAIRE

Must be completed each month
   
Yes
No
1.
Have any assets been sold or transferred outside the normal course of business
   
X
 
this reporting period?  If yes, provide an explanation below.
     
2.
Have any funds been disbursed from any account other than a debtor in possession
 
X
 
account this reporting period?  If yes, provide an explanation
     
3.
Have all postpetition tax returns been timely filed?  If no, provide an explanation
X
 
 
below.
       
4.
Are workers compensation, general liability and other necessary insurance
 
X
 
 
coverage in effect?  If no, provide an explanation below.
     
5.
Has any bank account been opened during the reporting period?  If yes, provide
     
 
documentation identifying the opened account(s).
   
X