KUSHNER LOCKE CO - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - KUSHNER LOCKE CO	v54662e8vk.htm
EX-99.2 - EX-99.2 - KUSHNER LOCKE CO	v54662exv99w2.htm
EX-99.3 - EX-99.3 - KUSHNER LOCKE CO	v54662exv99w3.htm

Exhibit 99.1

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA


In Re:		CHAPTER 11 (BUSINESS)

The Kushner-Locke Company
		Case Number:	Case No. LA 01-44828-SB
		Operating Report Number:	94
	Debtor(s).	For the Month Ending:	8/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (GENERAL ACCOUNT*)


1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			11,198,438.72


2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			10,885,271.40


3. BEGINNING BALANCE:			313,167.32


4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing

Accounts Receivable — Pre-filing

General Sales

Other (Specify) Internal Transfers		85,000.00

**Other (Specify)


TOTAL RECEIPTS THIS PERIOD:			85,000.00


5. BALANCE:			398,167.32


6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)		0.00

Disbursements (from page 2)		82,142.02


TOTAL DISBURSEMENTS THIS PERIOD:***			82,142.02


7. ENDING BALANCE:			316,025.30


8. General Account Number(s):		1891935460
	Comerica Bank
Depository Name & Location:	Los Angeles, CA


*		All receipts must be deposited into the general account.

**		Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

***		This amount should be the same as the total from page 2.

Page 1 of 16

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD


Date	Check				*Amount		**Amount
mm/dd/yyyy	Number		Payee or DIP account	Purpose	Transfered		Disbursed		Amount
08/07/2009	Wire		ADP	Payroll Fees				86.30		86.30
08/11/2009	Wire		Payroll Tax	Payroll				5,288.50		5,288.50
08/11/2009		8607	Payroll	Payroll				1,379.03		1,379.03
08/11/2009		8608	Payroll	Payroll				7,504.52		7,504.52
08/11/2009		8609	Payroll	Payroll				2,788.12		2,788.12
08/13/2009	Wire		Comerica Bank	Bank Fee				293.89		293.89
08/13/2009		1484	Anthem Blue Cross	Insurance				2,484.00		2,484.00
08/13/2009		1485	Bonded Services	Storage				4,000.00		4,000.00
08/13/2009		1486	Recall	Storage				918.84		918.84
08/13/2009		1487	Xerox	Office Supplies				22.49		22.49
08/21/2009	Wire		ADP	Payroll Fees				106.30		106.30
08/21/2009		1488	Alice Neuhauser Expenses	Phone / Internet / Parking				441.02		441.02
08/21/2009		1489	Arrowhead	Office Supplies				16.10		16.10
08/21/2009		1490	AT & T	Internet				86.16		86.16
08/21/2009		1491	Blue Shield	Insurance				319.00		319.00
08/21/2009		1492	Federal Express	Shipping				26.29		26.29
08/21/2009		1493	New Beginnings Enterprises	Rent / Parking				4,896.51		4,896.51
08/21/2009		1494	Alice Neuhauser Expenses	Health				69.22		69.22
08/21/2009		1495	AT & T	Telepone				291.67		291.67
08/25/2009	Wire		Payroll Tax	Payroll				5,441.91		5,441.91
08/25/2009		8610	Payroll	Payroll				1,379.02		1,379.02
08/25/2009		8611	Payroll	Payroll				7,693.51		7,693.51
08/25/2009		8612	Payroll	Payroll				2,788.12		2,788.12
08/28/2009	Wire		ADP	Payroll Fees				83.20		83.20
08/28/2009		1496	Kevin Marino Expenses	Office Supplies				299.69		299.69
08/28/2009		1497	Stutman Treister & Glatt	Legal Fees				33,438.61		33,438.61

			TOTAL DISBURSEMENTS THIS PERIOD:			0.00		82,142.02	$	82,142.02


*		Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.

**		Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 2 of 16

GENERAL ACCOUNT
BANK RECONCILIATION

Bank statement Date:

8/31/2009

Balance on Statement:

349,463.91

Plus deposits in transit (a):

Deposit Date

Deposit Amount

TOTAL DEPOSITS IN TRANSIT

0.00

Less Outstanding Checks (a):

Check Number

Check Date

Check Amount

1497

8/28/2009

33,438.61

TOTAL OUTSTANDING CHECKS:

33,438.61

Bank statement Adjustments:

Explanation of Adjustments-

ADJUSTED BANK BALANCE:

316,025.30


*		It is acceptable to replace this form with a similar form

**		Please attach a detailed explanation of any bank statement adjustment — ck

Page 3 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA


In Re:		CHAPTER 11 (BUSINESS)
The Kushner-Locke Company
		Case Number:	Case No. LA 01-44828-SB
		Operating Report Number:	94
	Debtor(s).	For the Month Ending:	8/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLATERAL ACCOUNT*)

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS

12,043,050.24

2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS

11,400,594.62

3. BEGINNING BALANCE:

642,455.62

4. RECEIPTS DURING CURRENT PERIOD:

Accounts Receivable — Post-filing

41,504.25

Accounts Receivable — Pre-filing

General Sales

Other (Specify)

Interest

57.67

**Other (Specify)

TOTAL RECEIPTS THIS PERIOD:

41,561.92

5. BALANCE:

684,017.54

6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD

Transfers to Other DIP Accounts (from page 2)

85,000.00

Disbursements (from page 2)

TOTAL DISBURSEMENTS THIS PERIOD:***

85,000.00

7. ENDING BALANCE:

599,017.54

8. General Account Number(s):

323-221-556

JP Morgan Chase

Depository Name & Location:

New York, NY


*		All receipts must be deposited into the general account.

**		Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

***		This amount should be the same as the total from page 2.



		Page 4 of 16

TOTAL DISBURSEMENTS FROM COLLATERAL ACCOUNT FOR CURRENT PERIOD


Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
8/17/2009	Wire	Kushner-Locke	Internal Transfer		35,000.00				35,000.00
8/28/2009	Wire	Kushner-Locke	Internal Transfer		50,000.00				50,000.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00

		TOTAL DISBURSEMENTS THIS PERIOD:			85,000.00		0.00	$	85,000.00


*		Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.

**		Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.



		Page 5 of 16

COLLATERAL ACCOUNT
BANK RECONCILIATION


	Bank statement Date:	8/31/2009	Balance on Statement:	$	599,017.54


Plus deposits in transit (a):
		Deposit Date	Deposit Amount








TOTAL DEPOSITS IN TRANSIT					0.00


Less Outstanding Checks (a):
	Check Number	Check Date	Check Amount











TOTAL OUTSTANDING CHECKS:					0.00


Bank statement Adjustments:

Explanation of Adjustments-


ADJUSTED BANK BALANCE:				$	599,017.54


*		It is acceptable to replace this form with a similar form

**		Please attach a detailed explanation of any bank statement adjustment

Page 6 of 16

UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA


In Re:		CHAPTER 11 (BUSINESS)

The Kushner-Locke Company
		Case Number:	Case No. LA 01-44828-SB
		Operating Report Number:	94
	Debtor(s).	For the Month Ending:	8/31/2009

I. CASH RECEIPTS AND DISBURSEMENTS
A. (COLLECTION ACCOUNT*)


1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS		1,302,570.28


2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS		51,487.80


3. BEGINNING BALANCE:		1,251,082.48


4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing	0.00

Accounts Receivable — Pre-filing

General Sales

Other (Specify)	0.00

**Other (Specify)


TOTAL RECEIPTS THIS PERIOD:		0.00


5. BALANCE:		1,251,082.48


6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)	0.00

Disbursements (from page 2)	50.00


TOTAL DISBURSEMENTS THIS PERIOD:***		50.00


7. ENDING BALANCE:		1,251,032.48


8. General Account Number(s):	112391673
Depository Name & Location:	City National Bank
	Beverly Hills, CA


*		All receipts must be deposited into the general account.

**		Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold, to whom, terms, and date of Court Order or Report of Sale.

***		This amount should be the same as the total from page 2.

Page 7 of 16

TOTAL DISBURSEMENTS FROM COLLECTION ACCOUNT FOR CURRENT PERIOD


Date	Check			*Amount		**Amount
mm/dd/yyyy	Number	Payee or DIP account	Purpose	Transfered		Disbursed		Amount
08/31/2009	Fee	City National Bank	Bank Fee			$	50.00		50.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
TOTAL DISBURSEMENTS THIS PERIOD:					0.00		50.00	$	50.00


*		Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the “amount” column will be filled in for you.

**		Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the “amount” column will be filled in for you.

Page 8 of 16

COLLECTION ACCOUNT
BANK RECONCILIATION

Bank statement Date:

8/31/2009

Balance on Statement:

1,251,032.48

Plus deposits in transit (a):

Deposit Date

Deposit Amount

TOTAL DEPOSITS IN TRANSIT

0.00

Less Outstanding Checks (a):

Check Number

Check Date

Check Amount

TOTAL OUTSTANDING CHECKS:

0.00

Bank statement Adjustments:

Explanation of Adjustments-

ADJUSTED BANK BALANCE:

1,251,032.48


*		It is acceptable to replace this form with a similar form

**		Please attach a detailed explanation of any bank statement adjustment

Page 9 of 16

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD: 08/01/09-08/31/09

(Provide a copy of monthly account statements for each of the below)

General Account:

316,025.30

Collateral Account:

599,017.54

Collection Account:

1,251,032.48

*Other Accounts:

Bank of Scotland — Pinocchio

Time Deposit

219,122.20

Currency: GBP

Bank of Scotland — Basil

Time Deposit

247,332.25

Currency: GBP

Edge Entertainment

172.89

KL- PWI account

731.10

BLT Venture

JV Account

71,485.48

BLT Venture

JV Account

330.45

KL\7 Venture

JV Account

39,997.94

Denial Venture

JV Account

244,926.92

Cracker LLC

JV Account

15,569.01

Swing

JV Account

13,031.13

*Other Monies:

**Petty Cash (from below):

0.00

TOTAL CASH AVAILABLE:

3,018,774.69

Petty Cash Transactions:

Date

Purpose

Amount

TOTAL PETTY CASH TRANSACTIONS:

0.00


*		Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#

**		Attach Exhibit Itemizing all petty cash transactions

Page 10 of 16

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS

Post-Petition

Frequency of

payments not made

Creditor, Lessor, Etc.

Payments (Mo/Qtr)

Amount of Payment

(Number)

Total Due

TOTAL DUE:

0.00

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

Gross Sales Subject to Sales Tax:

Total Wages Paid:

Total Post-Petition

Date Delinquent

Amounts Owing

Amount Delinquent

Amount Due

Federal Withholding

State Withholding

FICA- Employer’s Share

FICA- Employee’s Share

Federal Unemployment

Sales and Use

Real Property

Other:

TOTAL:

0.00

Page 11 of 16

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

*Accounts Payable

Accounts Receivable

Post-Petition

Pre-Petition

Post-Petition

30 days or less

6,247.95

551,661.12

31 - 60 days

61 - 90 days

91 - 120 days

Over 120 days

TOTAL:

6,247.95

0.00

551,661.12

V. INSURANCE COVERAGE

Amount of

Policy Expiration

Premium Paid

Name of Carrier

Coverage

Date

Through (Date)

Commercial Package

St. Paul Travelers

2,000,000.00

2/14/2010

Worker’s Compensation

St. Paul Travelers

1,000,000.00

1/14/2010

E & O

St. Paul Travelers

3,000,000.00

3/3/2010

Others:

VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)


Quarterly Period		Total
Ending (Date)		Disbursements		Quarterly Fees		Date Paid	Amount Paid		Quarterly Fees Still Owing
	11/01-12/08		10,014,342.17		78,650.00			83,975.00		(5,325.00	)
31-Mar-2009			295,493.00		1,950.00	apply credit				1,950.00
30-Jun-2009			215,093.50		1,625.00	apply credit				1,625.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00
										0.00

					82,225.00			83,975.00		(1,750.00	)


*		Post-Petition Accounts Payable SHOULD NOT include professionals’ fees and expenses which have been incurred but not yet awarded by the court. Post-Petition Accounts Payable SHOULD include professionals’ fees and expenses authorized by Court Order but which remain unpaid as of the close of the period report

Page 12 of 16

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS

Date of Order

Gross Compensation

Authorizing

* Authorized Gross

Paid During the

Name of Insider

Compensation

Month

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

Date of Order

Amount

Authorizing

Paid During

Name of Insider

Compensation

Description

the Month


*		Please indicate how compensation was identified in the order (e.g. $1,000/week, $2,500/month)

Page 13 of 16

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)


	Aug 09
Ordinary Income/Expense
Income
KL International Sales		5,500.00
Royalties		4,004.25

Total Income		9,504.25

Gross Profit		9,504.25
Expense
Bank Service Charges
City National — Service Charge		50.00
Comerica — Sevice Charge		293.89

Total Bank Service Charges		343.89
Copy Machine		22.49
Delivery & Distribution Expense
Shipping		26.29

Total Delivery & Distribution Expense		26.29
Insurance
Dental		319.00
Health		2,484.00

Total Insurance		2,803.00
Office Supplies		315.79
Parking		660.00
Payroll
Payroll cost — Employees		12,007.13
Payroll Fee		275.80
Responsible Officer		22,255.60

Total Payroll		34,538.53
Professional Fees
Legal Fees		2,327.79

Total Professional Fees		2,327.79
Rent		9,133.02
Storage		4,918.84

Total Expense		55,089.64

Net Ordinary Income		-45,585.39
Other Income/Expense
Other Income
Interest Income		57.67

Total Other Income		57.67

Net Other Income		57.67

Net Income		-45,527.72

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)


	Aug 31, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,251,032.48
Comerica — DIP		316,025.30
Due from Vision/to Vision		9,209.62
KL Cash Collateral — JP Morgan		599,017.54

Total Checking/Savings		2,175,284.94
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		225,000.00
AR — KL		258,333.35
AR — Vision		53,327.77

Total Accounts Receivable		551,661.12

Total Current Assets		2,726,946.06

TOTAL ASSETS		2,726,946.06

LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		6,247.95

Total Accounts Payable		6,247.95

Total Current Liabilities		6,247.95

Total Liabilities		6,247.95
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		993,255.43
Net Income		-618,011.23

Total Equity		2,720,698.11

TOTAL LIABILITIES & EQUITY		2,726,946.06

Page 15 of 16

XI. QUESTIONNAIRE


		No

1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If “Yes”, explain below:	þ



		No

2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If “Yes”, explain below:	þ


3.	State what progress was made during the reporting period toward filing a plan of reorganization Secured creditors are negotiating the final details of the reorg plan.


4.	Describe potential future developments which may have a significant impact on the case:

5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.


		No

6.	Did you receive any exempt income this month, which is not set forth in the operating report? If “Yes”, please set forth the amounts and sources of the income below.	þ



I,	Alice P. Neuhauser, Responsible Officer declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.





Date				Principal for debtor-in-possession

Page 16 of 16

KUSHNER LOCKE CO - FORM 8-K - EX-99.1 - December 18, 2009

Attached files