EX-99.3 4 ex99_3.htm EXHIBIT 99.3 ex99_3.htm

Exhibit 99.3
 
UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW JERSEY

In re
RA Liquidating Corp
 
Case No.
10-35315-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
   
N/A
   
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
   
None
   
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
RA Liquidating Corp
 
Case No.
10-35315-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
  $ 1,592,530.98     $ 100.00     $ 100.00     $ -     $ 1,592,730.98     $ -     $ 39,997.99     $ -  
                                                                 
Receipts
 
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
 
Cash Sales
  $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  
Accounts Receivable  (1)
    561.75                               561.75               1,681,581.06          
Loans and Advances
                                    -               992,000.00          
Sale of Assets
                                    -               10,161,703.97          
Other (Attach List)
    -       -       -       -       -               42,066.71          
Transfers (From DIP Accts.)
                                    -               1,679,599.93          
Change in clearings
                                    -               (36.53 )        
Total Receipts
  $ 561.75     $ -     $ -     $ -     $ 561.75     $ -     $ 14,556,915.14     $ -  
                                                                 
                                                                 
Disbursements
 
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
 
Net Payroll
  $ -     $ -     $ -     $ -     $ -     $ -     $ 155,078.58     $ -  
Payroll Taxes
                                    -               70,021.34          
Sales, Use, & Other Taxes
                                    -               2,035.00          
Inventory Purchases
                                    -               516,930.24          
Secured/Rental/Leases
                                    -               17,932.38          
Insurance
                                    -               45,258.12          
Administrative
    -                               -               5,715.62          
Selling
                                    -               -          
Other (Attach List)
    -       -       -       -       -               2,327,044.55          
Loan payments
                                    -               7,254,641.60          
Owner Draw *
                                    -               -          
Transfers (To DIP Accts)
    193,933.00               -               193,933.00               1,642,487.99          
                                      -               -          
Professional Fees
    34,204.41                               34,204.41               1,168,112.39          
U.S. Trustee Quarterly Fees
    6,000.00                               6,000.00               32,500.00          
Court Costs
                                    -               -          
                                                                 
Total Disbursements
  $ 234,137.41     $ -     $ -     $ -     $ 234,137.41     $ -     $ 13,237,757.81     $ -  
                                                                 
                                                                 
Net Cash Flow
    (233,575.66 )     -       -       -       (233,575.66 )             1,319,157.33          
(Receipts Less Disbursements)
                                                               
                                                                 
                                                                 
                                                                 
Cash - End of Month
  $ 1,358,955.32     $ 100.00     $ 100.00     $ -     $ 1,359,155.32     $ -     $ 1,359,155.32     $ -  
 
* 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
  $ 234,137.41  
Less: Transfers to Debtor in Possession Accounts
    (193,933.00 )
Plus: Estate Disbursements Made by Outside Sources (i.e. from escrow accounts)
       
Total Disbursements for Calculating U.S. Trustee Quarterly Fees
  $ 40,204.41  
 
(1)  Until October 15, 2010, all receipts were swept by the lender and applied directly to the secured debt.

 
 

 
 
In re
RA Liquidating Corp
 
Case No.
10-35315-MBK
     
Reporting Period
4/01/11 - 4/30/11

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
OTHER RECEIPTS & DISBURSEMENTS

   
Bank Accounts
   
Current Month
   
Cumulative Filing to Date
 
   
Operating
   
Payroll
   
Tax
   
Other
   
Actual
   
Projected
   
Actual
   
Projected
 
                                                 
Other Receipts
 
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
 
Interest on escrow funds
  $ -     $ -     $ -     $ -     $ -     $ -     $ 4.38     $ -  
Forward to Zippo Mfg receipts belonging to Zippo
                                    -               (78,378.75 )        
Forward to Trenton Aviation receipts belonging to Trenton Aviation
                                    -               (4,507.32 )        
Collect other current assets
                                    -               6,252.81          
Collect miscellaneous receivables
                                    -               37,591.17          
Collect prepaid expenses
                                    -               34,855.08          
Transfer from affiliate, RCC, Inc
                                    -               36,385.00          
Return of utility deposits
                                    -               9,864.34          
Total Other Receipts
  $ -     $ -     $ -     $ -     $ -     $ -     $ 42,066.71     $ -  
                                                                 
                                                                 
                                                                 
Other Disbursements
 
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
   
Amount
 
Building & ramp costs
  $ -     $ -     $ -     $ -     $ -     $ -     $ 4,647.48     $ -  
Maintenance costs
                                    -               12,510.15          
Transfers to RCLC, Inc. (1)
                                    -               -          
401k deposits
                                    -               11,812.72          
NJDEP
                                    -               2,500.00          
US Customs
                                    -               1,254.40          
Prior month reconciling items
                                    -               (750.41 )        
Getzler Henrich
                                    -               1,895,050.59          
Utilities deposits
                                    -               12,632.00          
Utilities
                                    -               3,917.23          
Equipment
                                    -               511.20          
Professional fees of Greenberg Traurig on behalf of Wells Fargo
                                    -               374,459.91          
File copying
    -                               -               8,046.40          
Payment reimbursed by Trenton Aviation
    -                               -               452.88          
                                      -               -          
                                      -               -          
                                      -               -          
Total Other Disbursements
  $ -     $ -     $ -     $ -     $ -     $ -     $ 2,327,044.55     $ -  

(1)  Included in transfers to DIP accounts

 
 

 
 
In re
RA Liquidating Corp
 
Case No.
10-35315-MBK
     
Reporting Period
4/01/11 - 4/30/11

BANK RECONCILIATIONS
Continuation Sheet for MOR-1
 
   
Operating
   
Tax
   
Payroll
   
Other
 
   
Capital One Bank
   
Capital One Bank
   
Capital One Bank
   
Cash on hand
 
    *     *     *        
                                                       
Balance Per Book
          $ 1,358,955.32             $ 100.00             $ 100.00             $ -  
                                                                 
Balance Per Bank
          $ 1,364,955.32             $ 100.00             $ 100.00             $ -  
(+) Deposits in Transit (Attach List)
            -               -               -               -  
(-) Outstanding Checks (Attach List)
            (6,000.00 )             -               -               -  
Other (Attach Explanation)
            -               -               -               -  
Adjusted Bank Balance *
          $ 1,358,955.32             $ 100.00             $ 100.00             $ -  
* 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
 
      4001     $ 6,000.00             $ -             $ -             $ -  
                                                                 
                                                                 
                                                                 
                                                                 
            $ 6,000.00             $ -             $ -             $ -  
                                                                 
Other
                                                               
            $ -             $ -             $ -             $ -  
                                                                 
                                                                 
            $ -             $ -             $ -             $ -  
 
*  Account number has been redacted.

 
 

 
 
In re
RA Liquidating Corp
 
Case No.
10-35315-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 Advisors, LLC
      $ -               $ -     $ -              
                                          $ 350,235.45     $ 1,904.36  
Szaferman, Lakind, Blumstein & Blader,  P.C.
                                                     
                                            12,151.50       221.36  
                                                       
Cole, Schotz, Meisel, Forman & Leonard, P.A.
 
2/1 - 2/28/11
    18,912.17  
RA Liq Corp
 
MT040511
 
04/05/11
    14,483.43       807.88                  
    3/1 - 3/31/11     23,582.40    RA Liq Corp   MT042611  
04/26/11
    18,677.20       235.90       463,989.48       27,561.68  
                                                       
J.H. Cohn LLP
                                                     
                                            130,413.82       222.27  
                                                       
Lowenstein Sandler PC
                                                     
                                            180,414.05       3,619.44  
        $ 42,494.57               $ 33,160.63     $ 1,043.78     $ 1,137,204.30     $ 33,529.11  
 
 
 

 
 
In re
RA Liquidating Corp
 
Case No.
10-35315-MBK
     
Reporting Period
4/01/11 - 4/30/11

STATEMENT OF OPERATIONS
(Income Statement)
Accrual Basis

Revenues
 
Month
   
Cumulative
Filing to Date
 
Gross Revenues
  $ -     $ 1,232,865.00  
Less:  Returns and Allowances
    -       (846.00 )
Net Revenue
    -       1,232,019.00  
                 
Cost of Goods Sold
               
Beginning Inventory
    -       223,977.00  
Add:  Purchases
    -       545,011.00  
Add:  Cost of Labor
    -       162,703.00  
Add:  Other Costs (attach schedule)
    -       201,334.00  
Less:  Ending Inventory
    -       (203,620.00 )
Cost of Goods Sold
    -       929,405.00  
Gross Profit
    -       302,614.00  
                 
Operating Expenses
               
Advertising
               
Auto and Truck Expense
    -       948.00  
Bad Debts
    (561.75 )     (7,569.23 )
Contributions
            -  
Employee Benefits Programs
    -       6,560.00  
Insider Compensation *
               
Insurance
    -       1,054.00  
Management Fees
    53,352.00       719,717.00  
Office Expense
    -       7,371.25  
Pension & Profit-Sharing Plans
    -       732.00  
Repairs and Maintenance
    -       283.00  
Rent and Lease Expense
               
Salaries/Commissions/Fees
    -       39,731.00  
Supplies
    -       583.00  
Taxes - Payroll
    -       1,551.00  
Taxes - Real Estate
               
Taxes - Other
    -       75.00  
Travel and Entertainment
               
Utilities
               
Other (attach schedule)
    -       133,818.80  
Total Operating Expenses Before Depreciation
    52,790.25       904,854.82  
Depreciation/Depletion/Amortization
    -       31,452.00  
Net Profit (Loss) Before Other Income & Expenses
    (52,790.25 )     (633,692.82 )
                 
Other Income and Expenses
               
Other Income (attach schedule)
    -       (245,234.00 )
Interest Expense
    -       60,342.00  
Other Expense (attach schedule)
               
Net Profit (Loss) Before Reorganization Items
    (52,790.25 )     (448,800.82 )
                 
Reorganization Items
               
Professional Fees
    43,139.62       761,672.45  
U.S. Trustee Quarterly Fees
    6,000.00       32,500.00  
Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)
    21.24       82.91  
Gain (Loss) from Sale of Equipment
    -       5,890,082.00  
Other Reorganization Expenses (attach schedule)
    -       59,458.00  
Total Reorganization Expenses
    49,118.38       (5,036,534.46 )
Income Taxes - deferred & allocated among affiliates
    -       1,433,958.00  
Income Taxes - current
    -       1,960.00  
Net Profit (Loss)
  $ (101,908.63 )   $ 3,151,815.64  
 
 
 

 
 
In re
RA Liquidating Corp
 
Case No.
10-35315-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
           
Building & ramp department costs
  $ -     $ 169,045.00  
Avionics department costs
            2,129.00  
Maintenance department costs
            23,049.00  
Parts & service administration costs
            7,111.00  
                 
    $ -     $ 201,334.00  
Other Operational Expenses
               
Audit fees
  $ -     $ 8,333.00  
Legal fees
               
Fees charged by the secured lender
            19,238.80  
Amortization of loan costs & write-off of unamortized portion
            98,201.00  
Records copying
    -       8,046.00  
    $ -     $ 133,818.80  
Other Income
               
Write off of prior overaccrual of estimated fees
  $ -     $ 51,031.00  
Adjustment in prior Chief Restructuring Officer fees
            100,000.00  
Adjustment in prior consulting fees - Getzler
    -       92,137.00  
Other
    -       66.00  
Recovery of prior escrow funds
            2,000.00  
                 
    $ -     $ 245,234.00  
Other Expenses
               
    $ -     $ -  
                 
                 
                 
                 
    $ -     $ -  
Other Reorganization Expenses
               
Professional fees
  $ -     $ 59,458.00  
                 
                 
                 
                 
    $ -     $ 59,458.00  

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
RA Liquidating Corp
 
Case No.
10-35315-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
  $ 1,359,155.32     $ 39,998.00  
Restricted Cash and Equivalents (see continuation sheet)
               
Accounts Receivable (Net)
    -       143,218.00  
Notes Receivable
               
Inventories
            223,977.00  
Prepaid Expenses
    14,712.37       91,243.00  
Professional Retainers
    -       25,000.00  
Other Current Assets (attach schedule)
    567,531.60       527,549.00  
Total Current Assets
    1,941,399.29       1,050,985.00  
                 
Property and Equipment
               
Real Property and Improvements
            5,505,335.00  
Machinery and Equipment
            667,352.00  
Furniture, Fixtures and Office Equipment
            346,616.00  
Leasehold Improvements
            1,108,308.00  
Vehicles
            15,872.00  
Less Accumulated Depreciation
            (4,389,112.00 )
Total Property & Equipment
    -       3,254,371.00  
                 
Other Assets
               
Loans to Insiders *
               
Other Assets (see schedule)
    3,462,391.21       3,514,233.00  
Total Other Assets
    3,462,391.21       3,514,233.00  
                 
Total Assets
  $ 5,403,790.50     $ 7,819,589.00  
 
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
  $ -     $ -  
Taxes Payable (refer to Form MOR-4)
    4,015.06          
Wages Payable
               
Notes Payable
               
Rent/Leases - Building/Equipment
               
Secured Debt / Adequate Protection Payments
               
Professional Fees
    120,213.22          
Amounts Due to Insiders *
    -          
Other Postpetition Liabilities (attach schedule)
    166,230.63          
Total Postpetition Liabilities
    290,458.91       -  
Liabilities Subject to Compromise
               
Secured Debt
            3,576,750.00  
Priority Debt
    6,122.47       21,836.00  
Unsecured Debt
    969,228.32       3,234,837.58  
Total Pre-Petition Liabilities
    975,350.79       6,833,423.58  
Total Liabilities
    1,265,809.70       6,833,423.58  
                 
Owner Equity
               
Capital Stock
    9,040.00       9,040.00  
Additional Paid-In Capital
    5,987,035.74       5,987,036.00  
Partners' Capital Account
               
Owner's Equity Account
               
Retained Earning - Pre-Petition
    (5,009,910.58 )     (5,009,910.58 )
Retained Earning - Postpetition
    3,151,815.64          
Adjustments to Owner Equity (attach schedule)
               
Postpetition contributions (Distributions) (Draws) (attach schedule)
               
Net Owner Equity
    4,137,980.80       986,165.42  
                 
Total Liabilities and Owners' Equity
  $ 5,403,790.50     $ 7,819,589.00  
 
 
 

 

In re
RA Liquidating Corp
 
Case No.
10-35315-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
  $ 67,193.00     $ 120,059.00  
Deferred costs of business sale
            397,995.00  
Other receivables
    190.18       9,495.00  
Environmental escrow accounts
    500,148.42          
    $ 567,531.60     $ 527,549.00  
Other  Assets
               
Deferred income tax assets
  $ 404,927.00     $ 888,294.00  
Deferred loan costs
    -       98,201.00  
Trademark
            2,000.00  
Accrued income tax  - intercompany allocation
    -       313,071.00  
Account receivable - RCLC
    3,057,464.21       2,212,667.00  
    $ 3,462,391.21     $ 3,514,233.00  
 
Liabilities And Owner Equity
 
Book Value at End of
Current Reporting Month
   
Book Value on
Petition Date
 
Other Postpetition Liabilities
               
Employee 401k deductions
  $ -     $ -  
Other payroll deductions
               
Sales and use taxes
               
Accrued vacation, sick, and holiday pay
               
Accrued audit fees
    8,333.30          
Accrued line service incentive pay
               
Accrued interest expense
               
Accrued other bank charges
               
Accrued 401k Company match
               
Accrued credit card fees
               
Accrued income taxes
               
Accrued other
    8,690.38          
Deferred rental income
               
Intercompany payable - RCLC, Inc.
    53,352.00          
Intercompany payable - RCPC Liq Corp
    95,854.95          
    $ 166,230.63     $ -  
                 
Adjustments to Owner Equity
               
    $ -     $ -  
                 
                 
                 
    $ -     $ -  
                 
Postpetition contributions (Distributions) (Draws) (attach schedule)
         
                 
    $ -     $ -  
                 
                 
    $ -     $ -  
 
 
 

 
 
In re
RA Liquidating Corp
 
Case No.
10-35315-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
  $ -     $ -     $ -           $ -  
FICA-Employee
    -       -       -             -  
FICA-Employer
    -       -       -             -  
Unemployment
    -       -       -             -  
Income
                                  -  
Other:
    -       -                     -  
Total Federal Taxes
    -       -       -             -