EX-99.1 2 d401986dex991.htm EX-99.1 EX-99.1

EXHIBIT 99.1

UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF MICHIGAN

TRANSMITTAL OF FINANCIAL REPORTS AND

CERTIFICATION OF COMPLIANCE WITH

UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR

THE PERIOD ENDED: July 31, 2012

 

In re:

    Energy Conversion Devices, Inc.    Case Number: 12-43166
      Chapter 11
      Judge: Hon. Thomas J. Tucker
       Debtor.   

Energy Conversion Devices, Inc./

As debtor in possession, I affirm:

 

  1. That I have reviewed the financial statements attached hereto, consisting of:

 

    

Operating Statement

    (Form 2)
    

Balance Sheet

    (Form 3)
    

Summary of Operations

    (Form 4)
    

Monthly Cash Statement

    (Form 5)
    

Statement of Compensation

    (Form 6)
    

Schedule of In-Force Insurance

    (Form 7)

And that they have been prepared in accordance with normal and customary accounting practices, and fairly and accurately reflect the debtor’s financial activity for the period stated:

 

  2. That the insurance, including workers’ compensation and unemployment insurance, as described in Section 5 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases, is in effect; and

(If not, attach a written explanation)        YES  x    NO  ¨

 

  3. That all post-petition taxes as described in Section 9 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases are current.

(If not, attach a written explanation)        YES  x    NO  ¨

 

  4. No professional fees (attorney, accountant, etc.) have been paid without specific court authorization.

(If not, attach a written explanation)        YES  x    NO  ¨

 

  5. All United States Trustee Quarterly fees have been paid and are current.

                                                                   YES   x    NO  ¨

 

  6. Have you filed your pre-petition tax returns?

(If not, attach a written explanation)        YES  ¨    NO  x

The Debtors have not filed their Michigan Business Tax (“MBT”) returns for fiscal 2010 and 2011. The Debtors are awaiting MEGA credit certificates to be issued by the Michigan Economic Development Corporation (“MEDC”) for these years. These certificates must be attached to the Debtors’ MBT returns to receive the credits. With these certificates. the Debtors anticipate refunds on their MBT tax returns. The Debtors have been informed that the MEDC is currently auditing the Debtors’ application for the MEGA credits and have everything necessary to complete these audits.

I hereby certify, under penalty of perjury, that the information provided above and in the attached documents is true and correct to the best of my information and belief.

 

Dated: August 20. 2012     Energy Conversion Devices, Inc.
    Debtor in Possession
    /s/ Gregory G. Coppola
    Title:   Gregory G. Coppola
      Sr. V.P.-Finance & Treasurer Phone: 248-687-7835

Form 1

OPERATING STATEMENT (P&L) (1)

Period Ending: July 31, 2012

Case No: 12-43166

 

      Current Month     Total Since Filing  

Total Revenue

    $ —        $ —     

Cost of Sales

    $ —        $ —     
  

 

 

    

 

 

  

GROSS PROFIT

      —          —     
  

 

 

    

 

 

  

EXPENSES:

     

Officer Compensation

      22,707        387,823   

Salary/Wage Expenses

      70,142        598,381   

Employee Benefits & Pensions

      29,220        152,040   

Payroll Taxes

      7,489        83,371   

Other Taxes

      3,454        38,954   

Rent and Lease Expense

      41,500        220,362   

Interest Expense

      662        6,704   

Property Insurance

      5,011        28,381   

Other Insurance

      40,623        795,619   

Utilities

      1,368        143,563   

Depreciation

      —          53,768   

Travel and Entertainment

      —          35,612   

Repairs and Maintenance

      —          2,658   

Supplies

      15        14,080   

Other

      —          986   

Other Specify – Outside Services

      181,211        339,348   

Gain/Loss on Sale Fixed Assets

      —          514,082   

Other Specify – Restructuring

      68,535        304,943   
  

 

 

    

 

 

  

TOTAL EXPENSES

      471,937        3,720,675   
  

 

 

    

 

 

  

OPERATING PROFIT

      (471,937 )      (3,720.675 ) 

Add: Non-Operating Income

     

Total Interest (Income)

      (13,596 )      (168,186 ) 

Other (Income) Expense

      —          (72,945 ) 

Less: Non-Operating Expenses

     

Loss on Investment in Subsidiary (3)

      —          41,001,047   

Unrecoverable Interco. Receivables (3)

      1,719,157        43,576,613   

Professional Fees (2)

      367,500        3,087,070   
  

 

 

    

 

 

  

NET INCOME/(LOSS)

    $ (2,544,998 )    $ (91,144,274 ) 
  

 

 

    

 

 

  

 

(1) The operating statement and balance sheet were prepared using accrual accounting.
(2) Professional fees include estimates and actual.
(3) Write-off of investments in and reserve for advances to wholly owned subsidiaries.

Form 2

BALANCE SHEET

Period Ending: July 31, 2012

Case No: 12-43166

 

      Current Month     Prior Month     At Filing  

ASSETS:

       

Cash and Cash Equivalents

    $ 125,487,794      $ 127,185,156      $ 94,740,784   

Investments

      11,541,264        11,521,961        45,522,223   

Inventories, Net

      —          —          —     

Accounts Receivable – Intercompany – USO

      805,114,891        802,246,671        792,119,291   

Accounts Receivable – Interco. – SIT/CDN

      41,857,455        41,857,455        41,840,029   

Accounts Receivable – Intercompany Reserve

      (41,857,455 )      (41,875.455 )      —     

Secured Notes – Subsidiaries

      5,000,000        6,719,157        6,719,157   

Accounts Receivable Trade – Net

      367,271        406,882        457,813   

Land and Buildings

      —          1,134,631        1,525,568   

Furniture, Fixtures & Equipment

      —          1,473,406        1,496,960   

Accumulated Depreciation

      —          (2,608,038 )      (2,563,233 ) 

Restricted Cash

      —          —          —     

Prepaid

      429,966        479,568        1,760,717   

Deposits + Holdbacks

      4,072,529        4,072,529        5,769,009   

Investment in Subsidiaries

      —          —          41,001,047   

Other Assets

      3,599,060        3,850,681        5,069,863   
  

 

 

    

 

 

    

 

 

  

TOTAL ASSETS

    $ 955,612,775      $ 956,482,605      $ 1,035,459,227   
  

 

 

    

 

 

    

 

 

  

LIABILITIES:

       

Post-petition Liabilities:

       

Accounts Payable Trade – Net

    $ 482,923      $ 857,917      $ —     

Accounts Payable Intercompany USO

      —          —          —     

Accounts Payable Intercompany SIT

      —          —          —     

Warranty

      —          —          —     

Other Liabilities

      65,815        (2,720 )      —     

Convertible Senior Notes

      —          —          —     

Accrued Salaries and Wages

      9,513        (997 )      —     

Accrued Taxes

      12,736        12,345        —     

Accrued Other

      98,138        98,418        —     
  

 

 

    

 

 

    

 

 

  

TOTAL Post-petition Liabilities

      669,125        964,962        —     

Secured Liabilities:

       

Secured Accounts Payable

      —          —          —     

Pre-petition Liabilities:

       

Accounts Payable Trade – Net

      953,622        953,622        953,622   

Accounts Payable Intercompany USO

      —          —          —     

Accounts Payable Intercompany SIT

      —          —          —     

Accounts Payable Unsecured Liabilities

      —          —          —     

Warranty

      —          —          —     

Other Liabilities

      2,581,850        2,581,850        2,581,850   

Convertible Senior Notes

      248,264,513        246,962,546        241,220,038   

Accrued Salaries and Wages

      168,112        168,112        168,112   

Accrued Taxes

      91,151        91,151        91,151   

Accrued Other

      6,185,931        5,528,048        2,533,542   
  

 

 

    

 

 

    

 

 

  

TOTAL Pre-petition Liabilities

      258,245,179        256,285,329        247,548,315   
  

 

 

    

 

 

    

 

 

  

TOTAL LIABILITIES

      258,914,304        257,250,291        247,548,315   

EQUITY:

       

Owners Capital

      (313,528 )      (313,528 )      (310,256 ) 

Additional Paid-In-Capital

      1,106,438,770        1,106,438,770        1,106,438,770   

Retained Earnings – Pre Petition + OCI

      (318,282,497 )      (318,293,652 )      (318,217,602 ) 

Retained Earnings – Post Petition

      (91,144,274 )      (88,599,277 )      —     
  

 

 

    

 

 

    

 

 

  

TOTAL EQUITY

      696,698,471        699,232,314        787,910,912   
  

 

 

    

 

 

    

 

 

  

TOTAL LIABILITIES AND EQUITY

    $ 955,612,775      $ 956,482,605      $ 1,035,459,227   
  

 

 

    

 

 

    

 

 

  

Form 3

SUMMARY OF OPERATIONS

Period Ended: July 31, 2012

Case No: 12-43166

Schedule of Post-petition Taxes Payable

 

      Beginning
Balance		      Accrued/
Withheld		      Payments/
Deposits		      Ending
Balance		  

Income Taxes Withheld

            

Federal

    $ —         $ 17,907.75       $ 17,907.75       $ —     

State

      —           4,348.64         4,348.64         —     

Local

      —           —           —           —     

FICA Withheld

      —           4,867.14         4,867.14         —     

Employers FICA

      —           6,439.66         6,439.66         —     

Unemployment Tax

            

Federal

      —           —           —           —     

State

      —           —           —           —     

Sales, Use & Excise Taxes

      —           —           —           —     

Property Taxes

      12,345.00         391.00         —           12,736.00   

Workers’ Compensation (1)

      —           —           —           —     

Other

      —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTALS

    $ 12,345.00       $ 33,954.19       $ 33,563.19       $ 12,736.00   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) Fully insured.

AGING OF ACCOUNTS RECEIVABLE

AND POST-PETITION ACCOUNTS PAYABLE

 

Age in Days    0-30      31-60      Over 60  

Post Petition

         

Accounts Payable

    $ 114,960       $ 126,157       $ 241,806   

Accounts Receivable

    $ —         $ —         $ 367,271   

For all post-petition accounts payable over 30 days old, please attach a sheet listing each such account, to whom the account is owed, the date the account was opened, and the reason for non-payment of the account.

Describe events or factors occurring during this reporting period materially affecting operations and formulation of a Plan of Reorganization: None

Form 4

MONTHLY CASH STATEMENT

Period Ending: July 31, 2012

 

Cash Activity Analysis (Cash Basis Only):

      Case No: 12-43166

 

          General
Account		      Money Market
Account		  
A.    Beginning Balance    $ 1,763,065.13       $ 125,573,493.03   
B.    Receipts      1,093,451.22         5,447.28   
     

 

 

     

 

 

  
  

(Attach separate schedule)

      
C.    Balance Available      2,856,516.35         125,578,940.31   
  

(A+B)

      
D.    Less Disbursements      2,113,793.21         1,000,000.00   
     

 

 

     

 

 

  
  

(Attach separate schedule)

      
E.    ENDING BALANCE    $ 742,723.14       $ 124,578,940.31   
  

(C-D)

      

ATTENTION: Please enter the TOTAL DISBURSEMENT from all your accounts, including cash and excluding transfers, onto the line below. This is the number that will determine your quarterly fee payment: $2,113,793.21

(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH ACCOUNT)

General Account:

1.

   Depository Name & Location      JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan

2.

   Account Number     

Money market Account:

1.

   Depository Name & Location      JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan

2.

   Account Number     

Other monies on hand (specify type and location) i.e., CD’s, bonds, etc.):

UBS Financial Services, Inc., Chicago, IL. – Investment account – CP75515 – corporate notes/bonds, paper; and money market funds – $ 11,583,580.00

Date: 8/20/2012

 

Energy Conversion Devices, Inc.
Debtor in Possession

Form 5

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

   

Julian Hawkins, President, CEO and Director

                             Capacity:    ¨         Shareholder
         x         Officer
         x         Director
         x         Insider

Detailed Description of Duties:

 

•  

Provides leadership to the business through the restructuring and sale process, focusing on the solar business

 

•  

Serves as a member of the Board of Directors

 

•  

Expand sales through supplier and customer base interaction

 

Current Compensation Paid (1) :

      Weekly         Or         Monthly   
         $ —     

Current Benefits Paid (1):

      Weekly         Or         Monthly   

Health Insurance

          $ —     

Life Insurance

            —     

Accidental Death & Dismemberment Life Insurance

            —     

Long-Term and Short-Term Disability Insurance

            —     

Employee Assistance Program

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment (Business meals)

            —     

Travel

            —     

Vacation Payout

            —     

Office Supplies

            —     

Internet/iPhone/iPad expenses

            —     

Conference/Seminar fee

            —     
        

 

 

  

Total Benefits

          $ —     
        

 

 

  

Current Other Payments Paid (1):

      Weekly         Or         Monthly   

Rent Paid

          $ —     

Loans

            —     

Moving

            —     

Lodging

            —     

Personal Car Mileage

            —     
        

 

 

  

Total Other Payments

          $ —     
        

 

 

  
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $ —     
        

 

 

  

 

(1) Mr. Hawkins’ last day of employment with the company was 5/11/12. He was reimbursed expenses on 6/22/12.

 

Dated: August 20, 2012       Julian Hawkins

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

    Jay B. Knoll, Executive Vice President,                             Capacity:    ¨         Shareholder
  

Chief Restructuring Officer and Director

       x         Officer
         x         Director
         x         Insider

Detailed Description of Duties:

 

•  

Provides leadership to the business through the restructuring, sale and bankruptcy processes

 

•  

Serves as a member of the Board of Directors

 

•  

Leads efforts to identify and implement cost reductions

 

Current Compensation Paid (1):

      Weekly         Or         Monthly   
         $ —     

Current Benefits Paid (1):

      Weekly         Or         Monthly   

Health Insurance

          $ —     

Life Insurance

            —     

Accidental Death & Dismemberment Insurance

            —     

Long-Term and Short-Term Disability Insurance

            —     

Employee Assistance Program

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Personal Car Mileage

            —     

Internet/iPhone/iPad

            —     

Total Benefits

            —     
        

 

 

  
         $ —     
        

 

 

  

Current Other Payments Paid (1):

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Telephone, Miscellaneous)

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $ —     
        

 

 

  

 

(1) Mr. Knoll’s last day of employment with the company was 6/1/12.

 

Dated: August 20, 2012       Jay B. Knoll

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

   

William C. Andrews, Executive Vice President and CFO

                             Capacity:    ¨         Shareholder
         x         Officer
         ¨         Director
         x         Insider

Detailed Description of Duties:

 

•  

Provides financial leadership and expertise to support the bankruptcy process

 

•  

Provides leadership and support to the business through the restructuring and sale process

 

•  

Provides oversight to company transition from a public company (SEC, SOX, etc.)

 

Current Compensation Paid (1):

      Weekly         Or         Monthly   
         $ 22,707.23   

Current Benefits Paid (1):

      Weekly         Or         Monthly   

Health Insurance

          $     

Life Insurance

            78.91   

Accidental Death & Dismemberment Insurance

            10.53   

Long-Term and Short-Term Disability Insurance

            72.50   

Employee Assistance Program

            1.69   

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Dues/Subscriptions

            —     

Personal Car Mileage

            —     

Internet/iPhone/iPad

            —     
        

 

 

  

Total Benefits

          $     
        

 

 

  

Current Other Payments Paid:

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Telephone)

            102.09   

Other (Describe)

            36.29   

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $     
        

 

 

  

 

(1) Mr. Andrews’ last day of employment with the Company was July 7, 2012.

 

Dated: August 20, 2012       William C. Andrews

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

    Joseph P. Conroy, Executive Vice President, ECD;                        Capacity:    x         Shareholder
  

Senior Vice President, USO Operations

       x         Officer
         ¨         Director
         x         Insider

Detailed Description of Duties:

 

•  

Provides leadership to all operations and manufacturing related activity (Auburn Hills, Greenville 1&2, Tijuana, China JV and Marcegaglia)

 

•  

Responsible for building new equipment to support the company’s technology efforts

 

•  

Provides leadership to all manufacturing, engineering, quality functions (ensures the production of all manufacturing products)

 

Current Compensation Paid (1) :

      Weekly         Or         Monthly   
         $ —     

Current Benefits Paid:

      Weekly         Or         Monthly   

Health Insurance

          $ —     

Life Insurance

            —     

Accidental Death & Dismemberment Insurance

            —     

Long-Term and Short-Term Disability Insurance

            —     

Employee Assistance Program

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Total Benefits

            —     

Current Other Payments Paid:

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

         
         $ —     
        

 

 

  

 

(1) Mr. Conroy is an officer of Energy Conversion Devices; however, his compensation is paid by United Solar Ovonic LLC. Mr. Conroy’s last day of employment with the company was 5/11/12.

 

Dated: August 20, 2012       Joseph P. Conroy

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

   

Joseph A. Avila

                             Capacity:    x         Shareholder
         ¨         Officer
         x         Director
         ¨         Insider

Detailed Description of Duties:

 

•  

reviewing, monitoring, and, where appropriate, approving fundamental financial and business strategies and major actions of the company;

 

•  

assessing major risks facing the company, and reviewing options for their mitigation;

 

•  

ensuring processes are in place for maintaining the integrity and reputation of the company – the integrity of the financial statements, the integrity of compliance with law and ethics and the integrity of relationships with other company stakeholders;

 

•  

oversight of the CEO, including selecting, evaluating and compensating the CEO and overseeing CEO succession planning;

 

•  

oversight of senior management, including providing counsel on the selection, evaluation, development and compensation of senior management.

 

Current Compensation Paid (1) :

      Weekly         Or         Monthly  (1) 
         $ 19,000.00   

Current Benefits Paid:

      Weekly         Or         Monthly   

Health Insurance

            —     

Life Insurance

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Other Benefits

            —     

Total Benefits

            —     

Current Other Payments Paid:

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $ 19,000.00   
        

 

 

  

 

(1) Independent directors are paid an annual retainer of $100,000, of which $66,000 is paid quarterly in cash. As Chair of the Corporate Governance and Nominating Committee and the Finance Committee, Mr. Avila receives an additional $10,000, also paid quarterly in cash.

 

Dated: August 20, 2012       Joseph A. Avila

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

   

Alan E. Barton

                        Capacity:    x         Shareholder
         ¨         Officer
         x         Director
         ¨         Insider

Detailed Description of Duties:

 

•  

reviewing, monitoring, and, where appropriate, approving fundamental financial and business strategies and major actions of the company;

 

•  

assessing major risks facing the company, and reviewing options for their mitigation;

 

•  

ensuring processes are in place for maintaining the integrity and reputation of the company – the integrity of the financial statements, the integrity of compliance with law and ethics and the integrity of relationships with other company stakeholders;

 

•  

oversight of the CEO, including selecting, evaluating and compensating the CEO and overseeing CEO succession planning;

 

•  

oversight of senior management, including providing counsel on the selection, evaluation, development and compensation of senior management.

 

Current Compensation Paid (1):

      Weekly         Or         Monthly  (1) 
         $ 18,375.00   

Current Benefits Paid:

      Weekly         Or         Monthly   

Health Insurance

            —     

Life Insurance

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Other Benefits

            —     

Total Benefits

            —     

Current Other Payments Paid:

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $ 18,375.00   
        

 

 

  

 

(1) Independent directors are paid an annual retainer of $100,000, of which $66,000 is paid quarterly in cash. As Chair of the Compensation Committee, Mr. Barton receives an additional $7,500, also paid quarterly in cash.

 

Dated: August 20, 2012       Alan E. Barton

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

   

Robert I. Frey

                             Capacity:    x         Shareholder
         ¨         Officer
         x         Director
         ¨         Insider

Detailed Description of Duties:

 

•  

reviewing, monitoring, and, where appropriate, approving fundamental financial and business strategies and major actions of the company;

 

•  

assessing major risks facing the company, and reviewing options for their mitigation;

 

•  

ensuring processes are in place for maintaining the integrity and reputation of the company – the integrity of the financial statements, the integrity of compliance with law and ethics and the integrity of relationships with other company stakeholders;

 

•  

oversight of the CEO, including selecting, evaluating and compensating the CEO and overseeing CEO succession planning;

 

•  

oversight of senior management, including providing counsel on the selection, evaluation, development and compensation of senior management.

 

Current Compensation Paid (1) :

      Weekly         Or         Monthly  (1) 
         $ 16,500.00   

Current Benefits Paid:

      Weekly         Or         Monthly   

Health Insurance

            —     

Life Insurance

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Other Benefits

            —     

Total Benefits

            —     

Current Other Payments Paid:

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $ 16,500.00   
        

 

 

  

 

(1) Independent directors are paid an annual retainer of $100,000, of which $66,000 is paid quarterly in cash.

 

Dated: August 20, 2012       Robert I. Frey

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

   

William J. Ketelhut

                             Capacity:    x         Shareholder
         ¨         Officer
         x         Director
         ¨         Insider

Detailed Description of Duties:

 

•  

reviewing, monitoring, and, where appropriate, approving fundamental financial and business strategies and major actions of the company;

 

•  

assessing major risks facing the company, and reviewing options for their mitigation;

 

•  

ensuring processes are in place for maintaining the integrity and reputation of the company – the integrity of the financial statements, the integrity of compliance with law and ethics and the integrity of relationships with other company stakeholders;

 

•  

oversight of the CEO, including selecting, evaluating and compensating the CEO and overseeing CEO succession planning;

 

•  

oversight of senior management, including providing counsel on the selection, evaluation, development and compensation of senior management.

 

Current Compensation Paid (1) :

      Weekly         Or         Monthly  (1) 
         $ 19,000.00   

Current Benefits Paid:

      Weekly         Or         Monthly   

Health Insurance

            —     

Life Insurance

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Other Benefits

            —     

Total Benefits

         

Current Other Payments Paid:

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $ 19,000.00   
        

 

 

  

 

(1) Independent directors are paid an annual retainer of $100,000, of which $66,000 is paid quarterly in cash. As Chair of the Audit Committee, Mr. Ketelhut receives an additional $10,000, also paid quarterly in cash.

 

Dated: August 20, 2012       William J. Ketelhut

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

   

Stephen Rabinowitz

                             Capacity:    x         Shareholder
         ¨         Officer
         x         Director
         ¨         Insider

Detailed Description of Duties:

 

•  

reviewing, monitoring, and, where appropriate, approving fundamental financial and business strategies and major actions of the company;

 

•  

assessing major risks facing the company, and reviewing options for their mitigation;

 

•  

ensuring processes are in place for maintaining the integrity and reputation of the company – the integrity of the financial statements, the integrity of compliance with law and ethics and the integrity of relationships with other company stakeholders;

 

•  

oversight of the CEO, including selecting, evaluating and compensating the CEO and overseeing CEO succession planning;

 

•  

oversight of senior management, including providing counsel on the selection, evaluation, development and compensation of senior management.

 

Current Compensation Paid (1):

      Weekly         Or         Monthly  (1) 
         $ 24,750.00   

Current Benefits Paid:

      Weekly         Or         Monthly   

Health Insurance

            —     

Life Insurance

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Other Benefits

            —     

Total Benefits

            —     

Current Other Payments Paid:

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $ 24,750.00   
        

 

 

  

 

(1) Independent directors are paid an annual retainer of $100,000, of which $66,000 is paid quarterly in cash. As Chairman of the Board, Mr. Rabinowitz receives an additional $50,000, of which $33,000 is paid quarterly in cash.

 

Dated: August 20, 2012       Stephen Rabinowitz

Form 6

MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: July 31, 2012

Case No: 12-43166

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:

   

George A. Schreiber, Jr.

                             Capacity:    x         Shareholder
         ¨         Officer
         x         Director
         ¨         Insider

Detailed Description of Duties:

 

•  

reviewing, monitoring, and, where appropriate, approving fundamental financial and business strategies and major actions of the company;

 

•  

assessing major risks facing the company, and reviewing options for their mitigation;

 

•  

ensuring processes are in place for maintaining the integrity and reputation of the company – the integrity of the financial statements, the integrity of compliance with law and ethics and the integrity of relationships with other company stakeholders;

 

•  

oversight of the CEO, including selecting, evaluating and compensating the CEO and overseeing CEO succession planning;

 

•  

oversight of senior management, including providing counsel on the selection, evaluation, development and compensation of senior management.

 

Current Compensation Paid (1) :

      Weekly         Or         Monthly  (1) 
         $ 16,500.00   
           —     

Current Benefits Paid:

      Weekly         Or         Monthly   

Health Insurance

            —     

Life Insurance

            —     

Retirement

            —     

Company Vehicle

            —     

Entertainment

            —     

Travel

            —     

Other Benefits

            —     

Total Benefits

            —     

Current Other Payments Paid:

      Weekly         Or         Monthly   

Rent Paid

            —     

Loans

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Other (Describe)

            —     

Total Other Payments

            —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

          $ 16,500.00   
        

 

 

  

 

  (1) Independent directors are paid an annual retainer of $100,000, of which $66,000 is paid quarterly in cash.

 

Dated: August 20, 2012       George A. Schreiber, Jr.

Form 6

SCHEDULE OF IN-FORCE INSURANCE

Period Ending: July 31, 2012

Case No: 12-43166 & 12-43167

 

INSURANCE TYPE

   

CARRIER

   

EXPIRATION DATE

Workers’ Compensation

    Valley Forge Insurance Company    02/01/2013

Workers’ Compensation

    American Casualty Company of Reading PA    02/01/2013

General Liability

    American Casualty Company of Reading PA    02/01/2013

Property (1st Layer)

    Allianz Global Risk US Insurance Company    02/01/2013

Property (2nd Layer)

    Lexington Insurance Company    02/01/2013

Automobile Policy

    Continental Casualty Company    02/01/2013

Umbrella Policy

    Continental Casualty Company    02/01/2013

Foreign Package

    Continental Casualty Company    02/01/2013

Special Risk Coverage

    Great American Insurance Company    03/18/2013

Directors & Officers

    Allied World National Assurance Company    09/30/2012

Directors & Officers

    Illinois National Insurance Company    09/30/2012

Directors & Officers

    Beazley Insurance Company, Inc. (Lloyd’s of London)    09/30/2012

Employee Practices Liability

    Starr Indemnity & Liability Company    09/30/2012

Fiduciary Liability

    Starr Indemnity & Liability Company    09/30/2012

Fidelity Bond

    Starr Indemnity & Liability Company    09/30/2012

Primary Directors & Officers

    Starr Indemnity & Liability Company    09/30/2012

ERISA Bond

    Travelers Casualty and Surety Company of America    11/16/2014

Pollution Liability Coverage

    Chartis Specialty Insurance    02/01/2014

Form 7