EX-99.1 2 ambassador-ex991_122911.htm MONTHLY OPERATING REPORT ambassador-ex991_122911.htm
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
 
 
 
In re:
 
Chapter 11
       
 
AMBASSADORS INTERNATIONAL, INC., et al.,1
 
Case No. 11-11002 (KG)
       
 
Debtors.
 
Jointly Administered
       
     

 
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 reconciliations)
MOR-1a
 
X
 
Schedule of Professional Fees Paid
MOR-1b
X
   
Copies of bank statements
   
X
 
Cash disbursements journals
   
X
 
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
   
X
 
Copies of tax returns filed during reporting period
   
X
 
Summary of Unpaid Postpetition Debts
MOR-4
X
   
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.
 
     
     
/s/ Eugene I. Davis            
December 29, 2011
Signature of Authorized Individual*
 
Date
     
     
Eugene I. Davis           
 
President
Printed Name of Authorized Individual
 
Title of Authorized Individual


________________________
 
1 The Debtors in these chapter 11 cases, along with each Debtor’s individual case number and the last four digits of each Debtor’s federal tax identification number, are: Ambassadors International, Inc. (Case No. 11-11002 (KG)),
 (8605); Ambassadors Cruise Group, LLC (Case No. 11-11003 (KG)), (2448); Ambassadors, LLC (Case No. 11-11004 (KG)), (0860); EN Boat LLC (Case No. 11-11006 (KG)), (8982); AQ Boat, LLC (Case No. 11-11009 (KG)), (5018); MQ Boat,  LLC (Case No. 11-11008 (KG)), (5095); DQ Boat, LLC (Case No. 11-11010 (KG)), (5064); QW Boat Company LLC (Case No. 11-11005 (KG)), (0658); Contessa Boat, LLC (Case No. 11-11007 (KG)), (9452); CQ Boat, LLC (Case No. 11-11011 (KG)), (9511); and American West Steamboat Company LLC (Case No. 11-11012 (KG)), (0656).  The chapter 11 case of Ambassadors International Cruise Group (USA), LLC (7304) (Case No. 11-11013) was dismissed on May 19, 2011.  The mailing address for each Debtor is c/o Stroock & Stroock & Lavan LLP, Attn: Michael Magzamen, 180 Maiden Lane, New York, NY 10038.
   
 * 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 Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: November 2011

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS2
 
Amounts reported should be per the debtor’s books, not the bank statement.  The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed.  The amounts reported in the “CURRENT MONTH - ACTUAL” column must equal the sum of the four bank account columns.  The amounts reported in the “PROJECTED” columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1) .  Attach copies of the bank statements and the cash disbursements journal.  The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page.  A bank reconciliation must be attached for each account.  [See MOR-1 (CON’T)]
 
   
CURRENT MONTH (ACTUAL)
Ambassadors International, Inc.
   
CASH BEGINNING OF MONTH
$1,201,841.98
   
RECEIPTS
 
   
CASH SALES
 
CREDIT CARD RECEIPTS
 
ACCOUNTS RECEIVABLE
 
INSURANCE PROCEEDS
75,105.17
SALE OF ASSETS
 
DEPOSITS
 
TRANSFERS (FROM DIP ACCOUNTS)
 
   
TOTAL RECEIPTS
 
   
DISBURSEMENTS
 
INSURANCE
 
PAYMENTS TO OTHER VENDORS
 
OTHER
 
TRANSFERS (TO DIP ACCTS)
 
PROFESSIONALS FEES
1,010,503.20
U.S. TRUSTEE QUARTERLY FEES
13,000.00
COURT COSTS
 
   
TOTAL DISBURSEMENTS
1,023,503.20
   
NET CASH FLOW
 
(RECEIPTS LESS DISBURSEMENTS)
 
   
CASH - END OF MONTH
$253,443.95

 
THE FOLLOWING SECTION MUST BE COMPLETED
 
DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
Ambassadors International, Inc.
TOTAL DISBURSEMENTS
1,023,503.20
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
 
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)
 
TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES
1,023,503.20

___________________________
2
The following Debtors had no receipts or disbursements in August 2011: Ambassadors Cruise Group, LLC; Ambassadors, LLC; AQ Boat, LLC; MQ Boat, LLC; DQ Boat, LLC, QW Boat Company LLC, EN Boat LLC, CQ Boat, LLC, Contessa Boat, LLC and America West Steamboat Company LLC.


   
In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: November 2011

DEBTORS’ BANK RECONCILIATION CERTIFICATION
 
To the best of my knowledge and belief, the Debtors have reconciled all bank statements for the reporting period covered by this operating report.  The figures included in this report are the resulting book balances.
 

 
December 29, 2011      
/s/ Eugene I. Davis      
Date
Signature of Responsible Party
Eugene I. Davis, President
   

 

 
In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: November 2011

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
 

 
This schedule is to include all retained professional payments for the reporting period covered by this operating report.
 
PROFESSIONAL
AMOUNT
Stroock & Stroock & Lavan LLP
$540,730.37
Richards, Layton & Finger, PA
$41,706.66
Imperial Capital, LLC
$151,777.01
Lowenstein Sandler P.C.
$175,205.25
Bifferato Gentilotti LLC
$11,975.98
Macquarie Capital (USA) Inc.
$36,280.75
Phase Eleven Consultants, LLC
$10,503.40
Kelley Drye & Warren LLP
$42,323.78

 


In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: November 2011

STATEMENT OF OPERATIONS
(Income Statement)
 
The Debtors have no operations and recognized no revenue during November 2011.
 

 

 

In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: November 2011

BALANCE SHEET
 
The Balance Sheet is to be completed on an accrual basis only.  Pre-petition liabilities must be classified separately from postpetition obligations.
 
Period: November 2011
 
   
Ambassadors International, Inc.
Majestic3
Discontinued Operations
CONSOLIDATED
ASSETS
         
Current Assets:
         
Cash & Cash Equivalents
 
253,444
-
-
253,444
Restricted Cash
 
-
-
-
-
Accounts Receivable
 
-
-
-
-
Prepaid Exp & Other Current Assets
 
-
-
-
-
Inventory
 
-
-
-
-
TOTAL ASSETS
 
253,444
-
-
253,444
           
LIABILITIES & STOCKHOLDERS’ EQUITY
         
Current Liabilities:
 
-
-
-
-
Accounts Payable (Prepetition)
 
234,540
579,486
-
814,026
Accounts Payable (Postpetition)
 
189,550
1,163
-
190,713
Accrued Professional Fees & Expenses
 
797,750
-
-
797,750
Intercompany Payable
 
(58,904,466)
54,540,412
4,364,055
-
Corporate Concentration Cash
 
(4,028,233)
14,003,502
(9,975,270)
-
Notes Payable – MARAD
 
958,142
-
-
958,142
Notes Payable
 
30,192,914
-
-
30,192,914
TOTAL LIABILITIES
 
(30,559,803)
69,124,563
(5,611,215)
32,953,545
         
-
Stockholders’ Equity:
 
-
-
-
-
Common Stock
 
33,218
-
-
33,218
Additional Paid In Capital
 
118,439,551
-
714,990
119,154,541
Other Equity
 
(85,516,975)
7,142,517
6,376,103
(71,998,356)
Retained Earnings (Accumulated Deficit)
 
(2,142,547)
(76,267,080)
(1,479,877)
(79,889,504)
Current Period Earnings (Losses)
 
-
-
-
-
Total Stockholders’ Equity
 
30,813,247
(69,124,563)
5,611,215
(32,700,101)
TOTAL LIAB. & STOCKHOLDERS’ EQUITY
 
253,444
-
-
253,444

_______________________
 3 This column includes EN Boat LLC, AQ Boat, LLC, MQ Boat, LLC, DQ Boat, LLC, QW Boat Company LLC, Contessa Boat, LLC, CQ Boat, LLC and American West Steamboat Company LLC, which are non-operational.


In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: November 2011

DEBTORS’ TAX CERTIFICATION
 
To the best of my knowledge and belief, Debtors have made all required income tax payments on a timely basis, except for pre-petition liabilities not authorized for payment by the Bankruptcy Court.  (The amount of income tax, if any, payable with respect to post-petition operations and transactions has not yet been determined.)
 



December 29, 2011
/s/ Eugene I. Davis       
Date
Signature of Responsible Party
 Eugene I. Davis, President
   





In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
Debtor
Reporting Period: November 2011

SUMMARY OF UNPAID POSTPETITION DEBTS4
 

Accounts Payable (0-30 days)
176,578.92
Accounts Payable (30-60 days)
0
Accounts Payable (+60 days)
14,134.00
Professional Fees and Expenses
797,750.33
Amounts Due to Insiders*
0
Total Postpetition Debts
988,463.25

____________________________
 
4
The numbers in this chart have been revised from the prior numbers reflected in the October Monthly Operating Report’s corresponding chart providing such information based on further review of applicable invoices of the Debtors.
 
*     “Insider” is defined in 11 U.S.C. Section 101(31).

In re Ambassadors International Inc, et al.,
Case No. 11-11002 (KG)
   
Debtor
Reporting Period: November 2011
   

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
 
Accounts Receivable Reconciliation
AMOUNT
Total Accounts Receivable at the beginning of the reporting period
N/A
+ Amounts billed during the period
N/A
- Amounts collected during the period
N/A
Total Accounts Receivable at the end of the reporting period
N/A
 
N/A
Accounts Receivable Aging
 
0 - 30 days old
N/A
31 - 60 days old
N/A
61 - 90 days old
N/A
91+ days old
N/A
Total Accounts Receivable
N/A
Amount considered uncollectible (Bad Debt)
N/A
Accounts Receivable (Net)
N/A

DEBTOR QUESTIONNAIRE
 
 
Must be completed each month
Yes
No
 1.
Have any assets been sold or transferred outside the normal course of business this reporting period?
 
X
 2.
Have any funds been disbursed from any account other than a debtor in possession account this reporting period?  If yes, provide an explanation below.
 
X
 3.
Have all postpetition tax returns been timely filed?  If no, provide an explanation below.  (The Debtors have not yet filed their 2010 federal income tax return.)
 
X
 4.
Are workers compensation, general liability and other necessary insurance coverages in effect?  If no, provide an explanation below.
X
 
 5.
Has any bank account been opened during the reporting period?  If yes, provide documentation identifying the opened account(s).  If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.
 
X