EX-99.1 2 d306333dex991.htm MONTHLY OPERATING REPORT OF TMST, INC Monthly Operating Report of TMST, Inc

Exhibit 99.1

 

DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al. (1)    CASE NUMBER:    09-17787

OFFICE OF THE UNITED STATES TRUSTEE - BALTIMORE DIVISION

MONTHLY OPERATING REPORT

CHAPTER 11

BUSINESS DEBTORS

Form 2-A

COVER SHEET AND QUESTIONNAIRE

For Period Ended January 31, 2012

 

Accounting Method:

   x  Accrual Basis      ¨  Cash Basis   

THIS REPORT IS DUE 20 DAYS AFTER THE END OF THE MONTH

 

Mark One Box for Each Required Document:       Debtor must attach each of the following reports/documents unless the U. S. Trustee has waived the requirement in writing. File the original with the Clerk of Court. Submit a duplicate, with original signature, to the U. S. Trustee.

 

Report/Document

Attached

  Previously
Waived
  REQUIRED REPORTS/DOCUMENTS
   

x

  ¨  

1. Cash Receipts and Disursements Statement (Form 2-B)

x

  ¨  

2. Balance Sheet (Form 2-C)

x

  ¨  

3. Profit and Loss Statement (Form 2-D)

x

  ¨  

4. Supporting Schedules (Form 2-E)

x

  ¨  

5. Disbursements Summary (Form 2-F)

¨

  x  

6. Narrative (Form 2-G)

x

  ¨  

7. Bank Statements for All Bank Accounts (See Exhibit A)

x

  ¨  

8. Bank Statement Reconciliations for all Bank Accounts (See Exhibit A)

 

QUESTIONNAIRE    Yes     No  

Please answer the questions below:

    

1. Is the business still operating?

   x (2   ¨     

2. Were any assets (other than inventory) sold this month?

   ¨        x     

3. Were all employees timely paid this month?

   x        ¨     

4. Are all insurance policies and operating licenses current and in effect?

   x (3   ¨     

5. Did you open any new bank accounts this month?

   ¨        x     

6. Did you deposit all receipts into your DIP account this month?

   x        ¨     

7. Have all taxes been timely paid (payroll, sales, etc.)?

   x        ¨     

8. Are you current on U.S. Trustee quarterly fees payments?

   x        ¨     

I declare under penalty of perjury that the following Monthly Operating Report, and any statements and attachments thereto are true, accurate and correct to the best of my belief.

 

Executed on:

  2/23/12      Print Name:       Joel I. Sher   
       Signature:       /s/ Joel I. Sher   
       Title:       Chapter 11 Trustee   

 

(1) Includes the following Debtors: TMST, Inc. f/k/a Thornburg Mortgage, Inc. (Case No. 09-17787), TMST Home Loans, Inc. f/k/a Thornburg Mortgage Home Loans, Inc. (Case No. 09-17791), TMST Hedging Strategies, Inc. f/k/a Thornburg Mortgage Hedging Strategies, Inc. (Case No. 09-17792), and TMST Acquisition Subsidiary, Inc. f/k/a Thornburg Acquisition Subsidiary, Inc. (Case No. 09-17790). The Adfitech, Inc. Monthly Operating Report is filed separately under Case No. 09-17788.
(2) The Chapter 11 Trustee is in the process of winding-up all operations.
(3) TMST Home Loans, Inc. is currently in the process of withdrawing state licenses due to the sale of the Servicing Portfolio.

Rev. 4/2008

 

Page 1 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT (1)

For Period: 1/1/2012 to 1/31/2012

CASH FLOW SUMMARY

 

      Current
Month
    Accumulated  
    

Beginning Cash Balance

   $ 103,209,028 (2)    $ 16,847,967 (2) 
  

 

 

   

 

 

 

2. Cash Receipts

    

Operations

     2,349        27,768,435   

Sale of Assets

     —          80,041,433   

Loans/advances

     —          18,364,080   

Other

     —          23,927,639   
  

 

 

   

 

 

 

Total Cash Receipts

   $ 2,349      $ 150,101,587   
  

 

 

   

 

 

 

3. Cash Disbursements

    

Operations

     209,098        23,075,073   

Debt Service/Secured loan payment

     —          —     

Professional fees/U.S. Trustee fees

     1,259,162        22,673,697   

Other

     0        19,457,667   
  

 

 

   

 

 

 

Total Cash Disbursements

   $ 1,468,260      $ 65,206,437   
  

 

 

   

 

 

 

4. Net Cash Flow (Total Cash Receipts less Total Cash Disbursements)

     (1,465,911     84,895,150   
  

 

 

   

 

 

 

5. Ending Cash Balance (to Form 2-C)

   $ 101,743,117 (3)    $ 101,743,117 (3)
  

 

 

   

 

 

 

CASH BALANCE SUMMARY

 

Account Name/Number

  

Institution

   Bank
Balance
    Deposits
     In Transit    
    Outstanding
Checks
     Book
Balance
 
            
xxxxxxx2822    New Mexico Bank & Trust    $ 1,404,261        —        $ 3,624         1,400,638   
xxxxxxx0805    J.P. Morgan      —    (4)      —          —           —     
xxxxxxx1807    New Mexico Bank & Trust      5,523        —          —           5,523   
xxxxxxx2954    New Mexico Bank & Trust      23,989        —          —           23,989   
xxxxxxx2989    New Mexico Bank & Trust      1,024        —          —           1,024   
xxxxxxx5856    New Mexico Bank & Trust      446,393        —          —           446,393   
xxxxxxx2842    New Mexico Bank & Trust      4,000,000        —          —           4,000,000   
xxxxxxx9638    The Bank of New York Mellon      1,002        —             1,002   
xxxxxxx9639    The Bank of New York Mellon      820        (820     —           —     
xxxxxxx0989    Bank of America      95,864,548        —          —           95,864,548   
     

 

 

   

 

 

   

 

 

    

 

 

 
      $ 101,747,561      $ (820   $ 3,624       $ 101,743,117 (3) 
     

 

 

   

 

 

   

 

 

    

 

 

 

 

(1) The term “cash” as used herein includes all forms of currency (e.g., checks, cash, money orders, etc.)
(2) Accumulated beginning cash balance is the cash available at the commencement of the case. Current month beginning cash balance equals the previous month’s ending balance.
(3) Current Month, Accumulated, and Book cash balances are the same.
(4) TMST, Inc. did not receive a more recent statement. Thus, the December 2011 statement is included in Exhibit A.

 

Page 2 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH DISBURSEMENTS DETAIL

(attach additional sheets as necessary)

   Account No:  xxxxxxx2822   

 

Date

   Check No.   

Payee

  

Description (Purpose)

   Amount  
1/3/2012    WIRE   

Shapiro Sher Guinot & Sandler

   Professional services    $ 273,380   
1/11/2012    7535   

FedEX

   Shipping      146   
1/11/2012    7536   

CSC

   Statutory Representation      321   
1/11/2012    7537   

Safeguard Business Systems Inc

   Contract Services      106   
1/11/2012    7538   

FrontBridge Technologies, Inc.

   Microsoft Exchange Hosted Services      5,150   
1/11/2012    7539   

Epiq Bankruptcy Solutions, LLC

   Professional services      6,323   
1/11/2012    7540   

Iron Mountain Information Management

   Document Storage      1,055   
1/11/2012    7541   

Hotel Santa Fe

   Contract Services      114   
1/11/2012    7542   

Crystal Springs

   Office Supplies      36   
1/11/2012    7543   

American Stock Transfer & Trust

   Transfer Agent      31,433   
1/11/2012    7544   

RR Donnelley Receivables, Inc

   EDGAR Filings      1,770   
1/11/2012    7545   

Walsh,Anderson,Brown,Aldridge & Gallegos

   Professional services      29   
1/11/2012    7546   

TMST Employee

   Expense reimbursement      345   
1/11/2012    7547   

CenturyLink

   Information Services      121   
1/11/2012    7548   

Adfitech, Inc.

   Tax Refund less expenses      22,352   
1/11/2012    WIRE   

ADP Inc.

   Payroll - Direct deposits      18,319   
1/12/2012    WIRE   

ADP, Inc.

   Payroll taxes      10,643   
1/23/2012    WIRE   

KPMG LLP

   Professional services      55,879   
1/23/2012    WIRE   

Quinn Emanuel Urquhart Oliver & Hedges LLP

   Professional services      13,180   
1/23/2012    WIRE   

Tydings & Rosenberg LLP

   Professional services      4,658   
1/23/2012    WIRE   

Goldin Associates, LLC

   Professional services      169,847   
1/23/2012    WIRE   

Shapiro Sher Guinot & Sandler

   Professional services      319,865   
1/24/2012    7549   

TBConsulting

   Contract Services      66,662   
1/24/2012    7550   

FedEX

   Shipping      43   
1/24/2012    7551   

Drinker Biddle & Reath LLP

   Professional services      3,000   
1/24/2012    7552   

tw telecom

   Information Services      1,265   
1/24/2012    7553   

ADT Security Services

   Contract Services      144   
1/24/2012    7554   

TMST Employee

   Expense reimbursement      964   
1/24/2012    7555   

U.S. Trustee

   BK court fees      9,750   
1/24/2012    7556   

First Interstate Plaza

   Office Lease_Rent      5,337   
1/24/2012    7557   

U.S. Trustee

   BK court fees      325   
1/25/2012    WIRE   

ADP Inc.

   Payroll - Direct deposits      19,872   
1/26/2012    WIRE   

ADP, Inc.

   Payroll taxes      11,604   
1/30/2012    WIRE   

Quinn Emanuel Urquhart Oliver & Hedges LLP

   Professional services      32,819   
1/30/2012    WIRE   

Goldin Associates, LLC

   Professional services      155,143   
1/30/2012    WIRE   

Tydings & Rosenberg LLP

   Professional services      6,556   
1/30/2012    WIRE   

Shapiro Sher Guinot & Sandler

   Professional services      210,458   
           

 

 

 
     

Total Cash Disbursements

   $ 1,459,015  (1) 
           

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 3 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH RECEIPTS DETAIL

(attach additional sheets as necessary)

   Account No:  xxxxxxx2822

 

Date

  

Payor

  

Description (Purpose)

   Amount  
1/20/2012   

TMST Employee

  

Reimbursement of Expenses

   $ 28   
1/20/2012   

AON Risk Services

  

Workers Compensation

     750   
1/25/2012   

Wells Fargo Bank

  

Reinvestment Income

     39   
1/25/2012   

US Bank

  

Credit Risk Advisor Fee

     527   
1/25/2012   

Wells Fargo Bank

  

Credit Risk Advisor Fee

     719   
1/25/2012   

Wells Fargo Bank

  

Credit Risk Advisor Fee

     286   
        

 

 

 
  

Total Cash Receipts

   $ 2,349  (1) 
        

 

 

 

 

(1) Total for all accounts should agree with total cash receipts listed on Form 2-B, page 2

 

Page 4 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH RECEIPTS DETAIL

(attach additional sheets as necessary)

   Account No:  xxxxxxx0805

 

Date

  

Payor

  

Description (Purpose)

   Amount  
        
        

 

 

 
  

Total Cash Receipts

   $ 0 (1) 
        

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 5 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH RECEIPTS DETAIL

   Account No:  xxxxxxx1807

(attach additional sheets as necessary)

  

 

Date

  

Payor

  

Description (Purpose)

   Amount  

1/31/2012

   New Mexico Bank & Trust    Interest Paid    $ 0   
        

 

 

 
   Total Cash Receipts    $ 0 (1) 
        

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 6 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH DISBURSEMENTS DETAIL

(attach additional sheets as necessary)

   Account No:  xxxxxxx2954

 

Date

  

Check No.

  

Payee

  

Description (Purpose)

   Amount  

1/11/2012

   15569    Pinnacle Exhibits, Inc.    Storage    $ 689   

1/11/2012

   15570    MIDCON Data Services LLC    Document Storage      2,065   

1/11/2012

   15571    State of Oregon    2010 TMST Home Loans Taxes      155   

1/24/2012

   15572    U.S. Trustee    BK court fees      325   

1/24/2012

   15573    U.S. Trustee    BK court fees      654   
           

 

 

 
      Total Cash Disbursements    $ 3,888 (1) 
           

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 7 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH RECEIPTS DETAIL    Account No:    xxxxxxx2954
(attach additional sheets as necessary)   

 

Date

  

Payor

  

Description (Purpose)

   Amount  
        
        

 

 

 
      Total Cash Receipts    $ 0 (1) 
        

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 8 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH DISBURSEMENTS DETAIL    Account No:  xxxxxxx2989
(attach additional sheets as necessary)   

 

Date

  

Check No.

  

Payee

  

Description (Purpose)

   Amount  

1/6/2012

   ACH    ADP Financial Services    Payroll processing    $ 137   

1/20/2012

   ACH    ADP Financial Services    Payroll processing      148   

1/27/2012

   ACH    ADP Financial Services    Payroll processing      72   
           

 

 

 
         Total Cash Disbursements    $ 357 (1) 
           

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 9 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH RECEIPTS DETAIL    Account No:  xxxxxxx5856
(attach additional sheets as necessary)   

 

Date

  

Payor

  

Description (Purpose)

   Amount  
        
        

 

 

 
     

Total Cash Receipts

   $ (1) 
        

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 10 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH DISBURSEMENTS DETAIL    Account No:  xxxxxxx2842
(attach additional sheets as necessary)   

 

Date

  

Payor

  

Description (Purpose)

   Amount  
        
        

 

 

 
  

Total Cash Receipts

   $ 0 (1) 
        

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 11 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH DISBURSEMENTS DETAIL    Account No:  xxxxxxx0989
(attach additional sheets as necessary)   

 

Date

  

Check No.

  

Payee

  

Description (Purpose)

       Amount      
1/31/2012    Bank of America       Bank and Technology Service Fee    $ 5,000   
           

 

 

 
     

Total Cash Disbursements

   $ 5,000 (1) 
           

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 12 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 1/1/2012 to 1/31/2012

 

CASH RECEIPTS DETAIL    Account No:  xxxxxxx0989
(attach additional sheets as necessary)   

 

Date

  

Payor

  

Description (Purpose)

       Amount      
        
        

 

 

 
      Total Cash Receipts    $ 0 (1) 
        

 

 

 

 

(1) Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

 

Page 13 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-C

COMPARATIVE BALANCE SHEET

For Period Ended: January 31, 2012

 

     Current
Month
    Petition
Date (1)
 

ASSETS

    

Current Assets:

    

Cash and Cash Equivalents (from Form 2-B)

   $ 101,743,117      $ 16,848,967   

Accounts Receivable (from Form 2-E)

     895,653        9,403,326   

Receivable from Officers, Employees, Affiliates (2)

     —          —     

Inventory

     —          —     

Other Current Assets (List):    Prepaid expenses & retainers

     1,067,747        4,807,453   

                    Accrued interest receivable

     —          47,878   
  

 

 

   

 

 

 

Total Current Assets

     103,706,517        31,107,624   
  

 

 

   

 

 

 

Fixed Assets:

    

Land

     —          —     

Building

     —          —     

Equipment, Furniture and Fixtures

     1,201,340        1,201,340   
  

 

 

   

 

 

 

Total Fixed Assets

     1,201,340        1,201,340   
  

 

 

   

 

 

 

Less: Accumulated Depreciation

     1,201,340        533,109   
  

 

 

   

 

 

 

Net Fixed Assets

     —          668,231   
  

 

 

   

 

 

 

Other Assets (List):    Restricted cash

     —          201,432,689   

       Mortgage servicing portfolio

     —          87,104,385   

       Investment in subsidiaries (3)

     (6,000,000     21,244,747   

       Loan held for sale

     1,985,230        8,359,404   

       Deposits

     3,605,000        300,000   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 103,296,747      $ 350,217,080   
  

 

 

   

 

 

 

LIABILITIES

    

Post-petition Accounts Payable (from Form 2-E)

   $ 665,463      $ —     

Post-petition Accrued Professional Fees (from Form 2-E)

     4,317,415        —     

Post-petition Taxes Payable (from Form 2-E)

     —          —     

Post-petition Notes Payable

     —          —     

Other Post-petition Payable(List):    Contingent obligations (4)

     3,296,287        —     
  

 

 

   

 

 

 

Total Post Petition Liabilities

     8,279,164        —     
  

 

 

   

 

 

 

Pre Petition Liabilities:

    

Secured Debt

     —          —     

Unsecured Debt (3)

     3,421,750,874        3,664,898,118   
  

 

 

   

 

 

 

Total Pre Petition Liabilities

     3,421,750,874        3,664,898,118   
  

 

 

   

 

 

 

TOTAL LIABILITIES

     3,430,030,038        3,664,898,118   
  

 

 

   

 

 

 

OWNERS’ EQUITY

    

Owner’s/Stockholder’s Equity

     3,640,741,359        3,640,741,359   

Retained Earnings - Prepetition

     (6,955,422,396     (6,955,422,396

Retained Earnings - Post-petition (5)

     (12,052,254     —     
  

 

 

   

 

 

 

TOTAL OWNERS’ EQUITY

     (3,326,733,291     (3,314,681,037
  

 

 

   

 

 

 

TOTAL LIABILITIES AND OWNERS’ EQUITY

   $ 103,296,747      $ 350,217,080   
  

 

 

   

 

 

 

 

(1) Petition date values are taken from the Debtors’ balance sheet as of the petition date or are the values listed on the Debtors’ schedules.
(2) TMST, Inc. has requested reimbursement from SAF for damages incurred. No receivable has been recorded. On February 13, 2012, the Trustee filed a motion with The Bankruptcy Court seeking approval of a settlement of all claims asserted against SAF Financial, Inc., Orrick, Herrington & Sutcliffe LLP, Thornburg Mortgage Advisory Corporation and other individual defendants. The impact of that settlement will be reflected in subsequent Monthly Operating Reports, upon its approval by The Bankruptcy Court.
(3) On March 15, 2010 the Second Amended Chapter 11 Plan of Reorganization for ADFITECH, Inc. became effective. TMST Home Loans interests were deemed cancelled on the Effective Date and Senior Notes Guarantee Claims against TMST, Inc. were reduced by $38.6 million under the plan.

Pre-petition unsecured debt includes a $1.1 billion fair value adjustment for Senior Subordinated Secured Notes recorded under GAAP. Total pre-petition liabilities prior to the fair value adjustment is $4,542,124,192.

(4) Includes cash payments received that will require bankruptcy court ruling to resolve ownership issues.
(5) Post-petition Retained Earning includes a loss of $4.2 million related to 2009, income of $3 million related to 2010 and a loss of $10.2 million related to 2011.

Rev. 4/2008

 

Page 14 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-D

PROFIT AND LOSS STATEMENT

For Period From: January 1, 2012 to January 31, 2012

 

     Current
Month
    Post-petition
Accumulated
Total (1)
 

Operating Revenue

    

Interest income (2)

   $ —        $ 5,637,681   

Mortgage servicing income

     1,571        21,840,786   
  

 

 

   

 

 

 

Net Operating Revenue

     1,571        27,478,467   
  

 

 

   

 

 

 

Total interest expense / (benefit) (3)

     —          (1,195,076
  

 

 

   

 

 

 

Gross Profit

     1,571        28,673,543   
  

 

 

   

 

 

 

Operating Expenses

    

Officer Compensation

     —          895,390   

Selling, General and Administrative

     195,402        28,352,536   

Rents and Leases

     5,527        960,346   

Depreciation, Depletion and Amortization

     —          668,240   

Other (list):    __________________________

     —          —     

    __________________________

     —          —     
  

 

 

   

 

 

 

Total Operating Expenses

     200,929        30,876,512   
  

 

 

   

 

 

 

Operating Income / (Loss)

     (199,358     (2,202,969
  

 

 

   

 

 

 

Non-Operating Income / (Expenses)

    

Earnings from subsidiaries

     —          3,368,902   

Other Non-Operating Income (4)

     —          13,692,097   
  

 

 

   

 

 

 

Net Non-Operating Income / (Expenses)

     —          17,060,999   
  

 

 

   

 

 

 

Reorganization Expenses

    

Legal and Professional Fees

     371,801        26,517,733   

Other Reorganization Expense

     925        687,404   
  

 

 

   

 

 

 

Total Reorganization Expenses

     372,726        27,205,137   
  

 

 

   

 

 

 

Net Income / (Loss) Before Income Taxes

     (572,084     (12,347,107
  

 

 

   

 

 

 

Federal and State Income Tax Expense / (Benefit) (5)

     155        (294,853
  

 

 

   

 

 

 

NET INCOME / (LOSS)

   $ (572,239   $ (12,052,254
  

 

 

   

 

 

 

 

(1) Accumulated Totals include all revenue and expenses since the petition date.
(2) Accumulated total includes approximately $4.5 million of $19.9 million in certain Owner Trust residual interest distributions that may require bankruptcy court ruling to resolve ownership issues. To be conservative, the Company has not recorded a $15.4 million receivable or the related income.
(3) Accumulated total reflects amortization of derivatives.
(4) Accumulated total includes an approximately $1 million settlement from Bank of America, $8 million gain on the reorganization of Adfitech, Inc., a $3.9 million gain on the servicing portfolio, a $3.3 million loss incurred on the whole loan liquidation and a $3.9 million gain on cancellation of auction swaps agreements by CSFB and RBS as reported in each entity’s respective bankruptcy claim filings.
(5) In early January 2010, the Trustee signed a Consent Agreement with the Internal Revenue Service to change TMST, Inc.’s method of accounting related to the reporting of taxable income associated with REMIC regular interests. Due to the large 2009 operating losses for TMST, Inc. no tax liability was incurred.

For tax year 2010, the Trustee was advised TMST, Inc. no longer qualified as a REIT and filed a consolidated return. Due to prior net operating losses, no tax liability is anticipated in 2010.

Rev. 4/2008

 

Page 15 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-E

SUPPORTING SCHEDULES

For Period: January 1, 2012 to January 31, 2012

POST PETITION TAXES PAYABLE SCHEDULE

 

     Beginning
Balance
     Amount
Accrued
     Amount
Paid
     Date
Paid
     Check
Number
     Ending
Balance
 

Income Tax Withheld

                 

Federal

   $ —         $ 5,354       $ 5,354         1/12/2012         Wire       $ —     
        5,936         5,936         1/26/2012         Wire         —     

State

     —           1,123         1,123         1/12/2012         Wire         —     
        1,240         1,240         1/26/2012         Wire         —     

FICA Tax Withheld

     —           1,485         1,485         1/12/2012         Wire         —     
        1,620         1,620         1/26/2012         Wire         —     

Employer’s FICA Tax

     —           2,011         2,011         1/12/2012         Wire         —     
        2,192         2,192         1/26/2012         Wire         —     

Unemployment Tax

                 

Federal

     —           126         126         1/12/2012         Wire         —     
        42         42         1/26/2012         Wire      
           —              

State

     —           544         544         1/12/2012         Wire         —     
        574         574         1/26/2012         Wire      
           —                 —     

Sales, Use & Excise Taxes

     —           —           —                 —     

Property Taxes

     —           —           —                 —     

Accrued Income Tax

                 

Federal

     —           —           —                 —     

State

     —           155         155         1/11/2012         15571      
  

 

 

    

 

 

    

 

 

          

 

 

 

TOTALS

   $ —         $ 22,402       $ 22,402             $ —     
  

 

 

    

 

 

    

 

 

          

 

 

 

INSURANCE SCHEDULE

 

    

Carrier

   Amount of
Coverage
   Expiration
Date
   Premiums
Paid

Through
Workers’ Compensation    The Cincinnati Insurance Co.    $1,000,000/incident    7/1/2012    7/1/2012
General Liability    The Cincinnati Insurance Co.    $1,000,000/incident    8/11/2012    8/11/2012
Property (Fire, Theft) (1)    N/A         
Vehicle (1)    N/A         
Directors & Officers (Excess)    N/A         
Directors & Officers (Primary)    N/A         
Trustee Surety Bond   

Liberty Mutual Insurance

Company

   120,000,000    10/28/2012    10/28/2012

 

(1) Commercial Property and Vehicle coverage are included in the General Liability Commercial Package policy.

Rev. 4/2008

 

Page 16 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-E

SUPPORTING SCHEDULES

For Period: 1/1/2012 to 1/31/2012

ACCOUNTS RECEIVABLE AND POST PETITION PAYABLE AGING

 

Due

   Accounts
Receivable (1)
    Post Petition
Accounts Payable (2)
 

Under 30 days

   $ —        $ 641,460   

30 to 60 days

     —          522,385   

61 to 90 days

     —          683,006   

91 to 120 days

     —          211,027   

Over 120 days

     492,676        2,925,000   

Unavailable

     283,719 (3)   
  

 

 

   

Total Post Petition

     776,395     
  

 

 

   

Pre Petition Amounts

     119,258 (3)   
  

 

 

   

Total Accounts Receivable

     895,653     

Less: Bad Debt Reserve

     —       
  

 

 

   

Net Accounts Receivable (to Form 2-C)

   $ 895,653     
  

 

 

   

 

 

 

Total Post Petition Accounts Payable

     $ 4,982,878   
    

 

 

 

 

(1) See Exhibit B for Accounts Receivable Aging
(2) See Exhibit C for Accounts Payable Aging
(3) Receivable amounts include balances due from multiple mortgage loan holders. Aging of the balances due is not available.

SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS

 

     Month-end
Retainer
Balance
     Current
Month’s
Accrual
     Paid in
Current
Month
     Date of
Court Approval
   Month-end
Balance Due * (1)
 

Debtor’s Counsel (2)

   $ —         $ —         $ —            $ —     

Debtor’s Special Counsel (3)

     310,304         —           —              449,718   

Debtor’s Financial Advisor

     —           —           —              191   

Creditors’ Committee’s Counsel

     100,000         29,870         57,213            155,845   

Unsecured Creditors’ Financial Advisor

     —           —           —              7,150   

Chapter 11 Trustee (4)

     —           75,000         —              2,025,000   

Trustee’s Counsel

     —           250,000         803,703            998,399   

Trustee’s Financial Advisor

     —           170,000         324,990            648,227   

Trustee’s Tax Advisor (5)

     —           —           55,879            27,232   

Trustee’s Consultant

           —           

Claims Agent

     —           3,000         6,323            5,653   
  

 

 

    

 

 

    

 

 

       

 

 

 

Total

   $ 410,304       $ 527,870       $ 1,248,108          $ 4,317,415   
  

 

 

    

 

 

    

 

 

       

 

 

 

 

* Balance due to include fees and expenses incurred but not yet paid.
(1) Includes estimates for amounts that may be due to professionals for which an invoice for services had not been received.
(2) Retainer Balance, net of outstanding fees, was returned to TMST, Inc. on August 3, 2010
(3) Orrick, Herrington & Sutcliffe LLP is no longer Debtors’ Special Counsel. The current balance due is the subject of an adversary proceeding filed against Orrick, Herrington & Sutcliffe LLP and other related parties. On February 13, 2012, the Trustee filed a motion with The Bankruptcy Court seeking approval of a settlement of all claims asserted against SAF Financial, Inc., Orrick, Herrington & Sutcliffe LLP, Thornburg Mortgage Advisory Corporation and other individual defendants. The impact of that settlement will be reflected in subsequent Monthly Operating Reports, upon its approval by The Bankruptcy Court.
(4) Chapter 11 Trustee commission is an estimate based on time spent performing the Trustee function at customary rates. The actual commission awarded is subject to Bankruptcy Court approval and will vary from the estimate.
(5) The Chapter 11 Trustee was authorized to retain KPMG LLP to provide tax compliance and consulting services on May 26, 2010 pursuant to their February 26, 2010 engagement letter. Payments for services rendered prior to February 28, 2010 are reported pursuant to the Ordinary Course Professional Compensation Procedures.

Rev. 4/2008

 

Page 17 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-E

SUPPORTING SCHEDULES

For Period: 1/1/2012 to 1/31/2012

SCHEDULE OF PAYMENTS AND TRANSFERS TO PRINCIPALS/EXECUTIVES**

 

Payee Name

   Position    Nature of Payment    Amount

N/A

        

 

** List payments and transfers of any kind and in any form made to or for the benefit of any proprietor, owner, partner, shareholder, officer or director.

Rev. 4/2008

 

Page 18 of 19


DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Form 2-F

DISBURSEMENT SUMMARY

For the Month Ended: January 31, 2012

QUARTERLY DISBURSEMENT CALCULATION

 

     TMST, Inc., et al.  

1. Disbursements made in calendar quarter

  

January 2012

   $ 1,468,260   

February 2012

  

March 2012

  
  

 

 

 

Quarterly Total

   $ 1,468,260   
  

 

 

 

FEE SCHEDULE

 

Quarterly Disbursements

   Fee     

Quarterly Disbursements

   Fee  

$0 to $14,999

   $ 325       $1,000,000 to $1,999,999    $ 6,500   

$15,000 to $74,999

   $ 650       $2,000,000 to $2,999,999    $ 9,750   

$75,000 to $149,999

   $ 975       $3,000,000 to $4,999,999    $ 10,400   

$150,000 to $224,999

   $ 1,625       $5,000,000 to $14,999,999    $ 13,000   

$225,000 to $299,999

   $ 1,950       $15,000,000 to $29,999,999    $ 20,000   

$300,000 to $999,999

   $ 4,875       $30,000,000 or more   

Interest will be assessed on Chapter 11 quarterly fees not paid by the end of the month following the end of the calander quarter pursuant to 31 U.S.C. Sec. 3717. The interest rate assessed is the rate in effect as determined by the Treasury Department at the time the account becomes past due.

Failure to pay the quarterly fee is cause for conversion or dismissal of the chapter 11 case. [11 U.S.C. Sec. 1112(b)(10)]

 

Page 19 of 19


Exhibit B

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Accounts Receivable

As of December 31, 2011

 

Post Petition

  Date     Amount     Under 30 days     30 to 60 days     61 to 90 days     91 to 120 days     Over 120 days     Unavailable  

Reimbursement Simmons_FedEx (1)

    8/7/2009        98        —          —          —          —          98        —     

Reimbursement Simmons_FedEx (1)

    8/14/2009        49        —          —          —          —          49        —     

Reimbursement Simmons_FedEx (1)

    9/11/2009        47        —          —          —          —          47        —     

Thornburg Mortgage Advisory Co

    10/15/2009        492,482        —          —          —          —          492,482        —     

Borrower Escrow Advance Balance (2)

    Various        272,828        —          —          —          —          —          272,828   

Borrower Corporate Advance Balance (2)

    Various        10,828        —          —          —          —          —          10,828   

Borrower Inspection Fees (2)

    Various        63        —          —          —          —          —          63   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Post Petition Accounts Receivable

    $ 776,395      $ —        $ —        $ —        $ —        $ 492,676      $ 283,719   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Pre Petition

   Date      Amount  

Borrower Escrow Advance Balance (2)

     Various         119,108   

Borrower Inspection Fees (2)

     Various         150   
     

 

 

 

Total Pre Petition Accounts Receivable

      $ 119,258   
     

 

 

 

 

(1) Employee expenses appear to have been for personal matters.
(2) Receivable amounts include balances due from multiple mortgage loan holders. Aging of the balances due is not available.

 

Page 1 of 1


Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of January 31, 2012

 

Vendor

  Date   Amount     Under 30 days     30 to 60 days     61 to 90 days     91 to 120 days     Over 120 days  

Thornburg Mortgage Advisory Co

  05/15/09     40,290        —          —          —          —          40,290   

Orrick,Herrington & Sutcliffe LLP

  05/31/09     21,469        —          —          —          —          21,469   

Orrick,Herrington & Sutcliffe LLP

  06/30/09     19,410        —          —          —          —          19,410   

Orrick,Herrington & Sutcliffe LLP

  07/31/09     127,078        —          —          —          —          127,078   

Thornburg Mortgage Advisory Co

  07/31/09     37,518        —          —          —          —          37,518   

Orrick,Herrington & Sutcliffe LLP

  08/31/09     281,761        —          —          —          —          281,761   

Thornburg Mortgage Advisory Co

  09/30/09     8,400        —          —          —          —          8,400   

Thornburg Mortgage Advisory Co

  10/15/09     29,657        —          —          —          —          29,657   

Thornburg Mortgage Advisory Co

  10/31/09     6,460        —          —          —          —          6,460   

Thornburg Mortgage Advisory Co

  11/15/09     28,453        —          —          —          —          28,453   

Chapter 11 Trustee_Joel I. Sher

  11/30/09     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  11/30/09     5,024        —          —          —          —          5,024   

Thornburg Mortgage Advisory Co

  12/15/09     1,875        —          —          —          —          1,875   

Chapter 11 Trustee_Joel I. Sher

  12/31/09     75,000        —          —          —          —          75,000   

Quinn Emanuel Urquhart Oliver & Hedges

  12/31/09     60,000        —          —          —          —          60,000   

Thornburg Mortgage Advisory Co

  12/31/09     29,989        —          —          —          —          29,989   

Thornburg Mortgage Advisory Co

  01/15/10     26,875        —          —          —          —          26,875   

Chapter 11 Trustee_Joel I. Sher

  01/31/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  01/31/10     4,450        —          —          —          —          4,450   

Thornburg Mortgage Advisory Co

  02/12/10     26,875        —          —          —          —          26,875   

Chapter 11 Trustee_Joel I. Sher

  02/28/10     75,000        —          —          —          —          75,000   

Protiviti Inc.

  02/28/10     191        —          —          —          —          191   

Thornburg Mortgage Advisory Co

  02/28/10     1,893        —          —          —          —          1,893   

Chapter 11 Trustee_Joel I. Sher

  03/31/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  03/31/10     31,325        —          —          —          —          31,325   

Chapter 11 Trustee_Joel I. Sher

  04/30/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  04/30/10     31,325        —          —          —          —          31,325   

Chapter 11 Trustee_Joel I. Sher

  05/31/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  05/31/10     31,325        —          —          —          —          31,325   

Chapter 11 Trustee_Joel I. Sher

  06/30/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  06/30/10     27,575        —          —          —          —          27,575   

Chapter 11 Trustee_Joel I. Sher

  07/31/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  07/31/10     27,575        —          —          —          —          27,575   

Chapter 11 Trustee_Joel I. Sher

  08/31/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  08/31/10     27,575        —          —          —          —          27,575   

Chapter 11 Trustee_Joel I. Sher

  09/30/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  09/30/10     25,000        —          —          —          —          25,000   

Chapter 11 Trustee_Joel I. Sher

  10/31/10     75,000        —          —          —          —          75,000   

 

Page 1 of 3


Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of January 31, 2012

 

Vendor

  Date   Amount     Under 30 days     30 to 60 days     61 to 90 days     91 to 120 days     Over 120 days  

Thornburg Mortgage Advisory Co

  10/31/10     25,000        —          —          —          —          25,000   

Chapter 11 Trustee_Joel I. Sher

  11/30/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  11/30/10     25,000        —          —          —          —          25,000   

Chapter 11 Trustee_Joel I. Sher

  12/31/10     75,000        —          —          —          —          75,000   

Thornburg Mortgage Advisory Co

  12/31/10     25,000        —          —          —          —          25,000   

Chapter 11 Trustee_Joel I. Sher

  01/31/11     75,000        —          —          —          —          75,000   

J.H. Cohn LLP

  01/31/11     3,749        —          —          —          —          3,749   

Thornburg Mortgage Advisory Co

  01/31/11     25,000        —          —          —          —          25,000   

Chapter 11 Trustee_Joel I. Sher

  02/28/11     75,000        —          —          —          —          75,000   

Chapter 11 Trustee_Joel I. Sher

  03/31/11     75,000        —          —          —          —          75,000   

J.H. Cohn LLP

  03/31/11     1,737        —          —          —          —          1,737   

Chapter 11 Trustee_Joel I. Sher

  04/30/11     75,000        —          —          —          —          75,000   

Chapter 11 Trustee_Joel I. Sher

  05/31/11     75,000        —          —          —          —          75,000   

J.H. Cohn LLP

  05/31/11     1,664        —          —          —          —          1,664   

KPMG LLP

  05/31/11     3,253        —          —          —          —          3,253   

Chapter 11 Trustee_Joel I. Sher

  06/30/11     75,000        —          —          —          —          75,000   

KPMG LLP

  06/30/11     7,990        —          —          —          —          7,990   

Chapter 11 Trustee_Joel I. Sher

  07/31/11     75,000        —          —          —          —          75,000   

KPMG LLP

  07/31/11     2,020        —          —          —          —          2,020   

Chapter 11 Trustee_Joel I. Sher

  08/31/11     75,000        —          —          —          —          75,000   

Broadstreet Capital Partners, LP

  08/31/11     2,415        —          —          —          —          2,415   

Chapter 11 Trustee_Joel I. Sher

  09/30/11     75,000        —          —          —          —          75,000   

Goldin Associates, LLC

  09/30/11     40,822        —          —          —          —          40,822   

Quinn Emanuel Urquhart Oliver & Hedges

  09/30/11     3,402        —          —          —          —          3,402   

Shapiro Sher Guinot & Sandler

  09/30/11     71,103        —          —          —          —          71,103   

Tydings & Rosenberg LLP

  09/30/11     2,480        —          —          —          —          2,480   

Chapter 11 Trustee_Joel I. Sher

  10/31/11     75,000        —          —          —          75,000        —     

Goldin Associates, LLC

  10/31/11     41,864        —          —          —          41,864        —     

KPMG LLP

  10/31/11     13,970        —          —          —          13,970        —     

Quinn Emanuel Urquhart Oliver & Hedges

  10/31/11     3,151        —          —          —          3,151        —     

Shapiro Sher Guinot & Sandler

  10/31/11     76,206        —          —          —          76,206        —     

Tydings & Rosenberg LLP

  10/31/11     836        —          —          —          836        —     

Chapter 11 Trustee_Joel I. Sher

  11/30/11     75,000        —          —          75,000        —          —     

Goldin Associates, LLC

  11/30/11     224,977        —          —          224,977        —          —     

Quinn Emanuel Urquhart Oliver & Hedges

  11/30/11     24,729        —          —          24,729        —          —     

Shapiro Sher Guinot & Sandler

  11/30/11     353,615        —          —          353,615        —          —     

Tydings & Rosenberg LLP

  11/30/11     4,685        —          —          4,685        —          —     

Chapter 11 Trustee_Joel I. Sher

  12/31/11     75,000        —          75,000        —          —          —     

Epiq Bankruptcy Solutions, LLC

  12/31/11     2,653        —          2,653        —          —          —     

 

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Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of January 31, 2012

 

Vendor

   Date    Amount      Under 30 days      30 to 60 days      61 to 90 days      91 to 120 days      Over 120 days  

Goldin Associates, LLC

   12/31/11      170,564         —           170,564         —           —           —     

Quinn Emanuel Urquhart Oliver & Hedges

   12/31/11      23,787         —           23,787         —           —           —     

Shapiro Sher Guinot & Sandler

   12/31/11      247,475         —           247,475         —           —           —     

Tydings & Rosenberg LLP

   12/31/11      2,906         —           2,906         —           —           —     

CenturyLink

   01/22/12      119         119         —           —           —           —     

Susman Godfrey LLP

   01/22/12      1,547         1,547         —           —           —           —     

FrontBridge Technologies, Inc.

   01/25/12      2,575         2,575         —           —           —           —     

Lexis Nexis

   01/25/12      38,392         38,392         —           —           —           —     

TMST Employee

   01/26/12      318         318         —           —           —           —     

Chapter 11 Trustee_Joel I. Sher

   01/31/12      75,000         75,000         —           —           —           —     

Epiq Bankruptcy Solutions, LLC

   01/31/12      3,000         3,000         —           —           —           —     

Goldin Associates, LLC

   01/31/12      170,000         170,000         —           —           —           —     

Quinn Emanuel Urquhart Oliver & Hedges

   01/31/12      25,000         25,000         —           —           —           —     

Shapiro Sher Guinot & Sandler

   01/31/12      250,000         250,000         —           —           —           —     

Tydings & Rosenberg LLP

   01/31/12      4,870         4,870         —           —           —           —     

Iron Mountain Information Management

   01/31/12      846         846         —           —           —           —     

RR Donnelley

   01/31/12      925         925         —           —           —           —     

TBConsulting

   01/31/12      46,900         46,900         —           —           —           —     

TMST Employee

   01/31/12      468         468         —           —           —           —     

Payroll Accrual

   01/31/12      21,500         21,500         —           —           —           —     
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Post Petition Accounts Payable

        4,982,877         641,459         522,385         683,006         211,027         2,925,000   
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

NOTE: Includes estimates for amounts that may be due to professionals for which an invoice for services had not been received. Amounts asserted by vendors may be subject to adjustments and bankruptcy court approval.

 

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DEBTOR:    TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.    CASE NO:    09-17787

 

Exhibit D

For Period Ending January 31, 2012

EXPLANATORY STATEMENT

RESERVATION OF RIGHTS AND GLOBAL FOOTNOTES

FOR MONTHLY OPERATING REPORT

The Trustee reserve all rights to dispute the amount, allowance, priority, treatment and/or secured or other status of any and all claims against the Debtors or their estates referred to herein. The Trustee reserve the right to (a) amend and supplement this Monthly Operating Report from time to time, and (b) assert any and all potential claims and causes of action of the Debtors’ estates regardless of whether such claim or cause of action is identified herein.

Any values presented are not and should not be deemed to be an admission, representation or waiver with respect to the actual value of any asset or amount of any liability or claim. The actual realizable value and/or fair market value of assets, liabilities and claims may differ significantly from the values presented.

The Trustee prepared this Monthly Operating Report with the assistance of his financial advisor, Goldin Associates, LLC (“Goldin”), based upon the information available to date. This Monthly Operating Report does not purport to present financial statements in accordance with Generally Accepted Accounting Principles, and the information contained herein has not been subjected to audit or review by Goldin or any other party on behalf of the Trustee.

This Explanatory Statement, Reservation of Rights and Global Footnotes is hereby incorporated by reference into, and comprises an integral part of, the Debtors’ Monthly Operating Report and should be referred to and considered in connection with any review of the report.

 

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