KUSHNER LOCKE CO - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - FORM 8-K - KUSHNER LOCKE CO	v54662e8vk.htm
EX-99.3 - EX-99.3 - KUSHNER LOCKE CO	v54662exv99w3.htm
EX-99.1 - EX-99.1 - KUSHNER LOCKE CO	v54662exv99w1.htm

Exhibit 99.2

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:	95
	Debtor(s).	For the Month Ending:	9/30/2009

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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS

11,283,438.72

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

10,967,413.42

3. BEGINNING BALANCE:

316,025.30

4. RECEIPTS DURING CURRENT PERIOD:

Accounts Receivable — Post-filing

8,952.93

Accounts Receivable — Pre-filing

General Sales

Other (Specify)

Internal Transfers

50,000.00

**Other (Specify)

TOTAL RECEIPTS THIS PERIOD:

58,952.93

5. BALANCE:

374,978.23

6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD

Transfers to Other DIP Accounts (from page 2)

0.00

Disbursements (from page 2)

72,281.58

7. ENDING BALANCE:

302,696.65

8. General Account Number(s):

1891935460

Depository Name & Location:

Comerica Bank

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
09/02/2009	Wire	Payroll Tax				$	5,288.49	$	5,288.49
09/02/2009	1498	Bonded Services				$	4,000.00	$	4,000.00
09/02/2009	1499	Bowne of Los Angeles				$	1,246.00	$	1,246.00
09/02/2009	1500	Brandon & Morner Ritt				$	3,233.40	$	3,233.40
09/02/2009	1501	Global Media Television				$	7,500.00	$	7,500.00
09/02/2009	1502	Kevin Marino Expenses				$	141.53	$	141.53
09/02/2009	1503	Xerox				$	22.49	$	22.49
09/02/2009	8613	Payroll				$	1,379.04	$	1,379.04
09/02/2009	8614	Payroll				$	7,504.52	$	7,504.52
09/02/2009	8615	Payroll				$	2,788.12	$	2,788.12
09/04/2009	Wire	ADP				$	86.30	$	86.30
09/14/2009	Wire	ADP				$	86.30	$	86.30
09/18/2009	Wire	ADP				$	20.00	$	20.00
09/18/2009	Wire	Comerica Bank				$	281.84	$	281.84
09/18/2009	1504	Anthem Blue Cross				$	2,484.00	$	2,484.00
09/18/2009	1505	Arrowhead				$	16.10	$	16.10
09/18/2009	1506	Blue Shield				$	319.00	$	319.00
09/18/2009	1507	Federal Express				$	27.32	$	27.32
09/18/2009	1508	Kevin Marino Expenses				$	569.64	$	569.64
09/18/2009	1509	Recall				$	918.84	$	918.84
09/22/2009	Wire	Payroll Tax				$	3,705.42	$	3,705.42
09/22/2009	8616	Payroll				$	1,379.03	$	1,379.03
09/22/2009	8617	Payroll				$	5,321.27	$	5,321.27
09/22/2009	8618	Payroll				$	2,788.11	$	2,788.11
09/25/2009	Wire	ADP				$	83.20	$	83.20
09/28/2009	1510	AT & T				$	86.16	$	86.16
09/28/2009	1511	AT & T				$	287.12	$	287.12
09/28/2009	1512	Kevin Marino Expenses				$	319.40	$	319.40
09/28/2009	1514	New Beginnings Enterprises				$	4,896.51	$	4,896.51
09/30/2009	1515	New Wave Entertainment				$	650.00	$	650.00
09/30/2009	1516	Anthem Blue Cross				$	2,484.00	$	2,484.00
09/30/2009	1517	Bonded Services				$	4,000.00	$	4,000.00
09/30/2009	1518	Digital Post Services				$	590.70	$	590.70
09/30/2009	1519	New Beginnings Enterprises				$	4,896.51	$	4,896.51
09/30/2009	1520	New Wave Entertainment				$	256.00	$	256.00
09/30/2009	1521	Point 360				$	2,625.22	$	2,625.22

		TOTAL DISBURSEMENTS THIS PERIOD:			0.00		72,281.58	$	72,281.58


*		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:			9/30/2009	Balance on Statement:		$	321,360.47


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

		1510		9/28/2009	$	86.16
		1511		9/28/2009	$	287.12
		1515		9/30/2009	$	650.00
		1516		9/30/2009	$	2,484.00
		1517		9/30/2009	$	4,000.00
		1518		9/30/2009	$	590.00
		1519		9/30/2009	$	4,896.51
		1520		9/30/2009	$	256.00
		1521		9/30/2009	$	2,625.22
		8618		9/22/2009	$	2,788.11
TOTAL OUTSTANDING CHECKS:								18,663.82


Bank statement Adjustments:
Explanation of Adjustments-


ADJUSTED BANK BALANCE:							$	302,696.65


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

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

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:		95
	Debtor(s).	For the Month Ending:		9/30/2009

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


1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			12,084,612.16


2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			11,485,594.62


3. BEGINNING BALANCE:			599,017.54


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

Accounts Receivable — Pre-filing

General Sales

Other (Specify) Interest		55.90

**Other (Specify)


TOTAL RECEIPTS THIS PERIOD:			55.90


5. BALANCE:			599,073.44


6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
Transfers to Other DIP Accounts (from page 2)		50,000.00

Disbursements (from page 2)		7,598.79


TOTAL DISBURSEMENTS THIS PERIOD:***			57,598.79


7. ENDING BALANCE:			541,474.65


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
9/3/2009	Wire	JP Morgan Chase	Legal Fees				2,327.79		2,327.79
9/11/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
9/22/2009	Wire	Kushner-Locke	Internal Transfer		25,000.00				25,000.00
09/30/2009	Wire	JP Morgan Chase	Legal Fees				5,271.00		5,271.00
									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:					50,000.00		7,598.79	$	57,598.79


*		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:

9/30/2009

Balance on Statement:

546,745.65

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

Wire

9/30/2009

5,271.00

TOTAL OUTSTANDING CHECKS:

5,271.00

Bank statement Adjustments:

Explanation of Adjustments-

ADJUSTED BANK BALANCE:

541,474.65


*		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:	95
	Debtor(s).	For the Month Ending:	9/30/2009

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		51,537.80


3. BEGINNING BALANCE:		1,251,032.48


4. RECEIPTS DURING CURRENT PERIOD:
Accounts Receivable — Post-filing	3,359.52

Accounts Receivable — Pre-filing

General Sales

Other (Specify)	0.00

**Other (Specify)


TOTAL RECEIPTS THIS PERIOD:		3,359.52


5. BALANCE:		1,254,392.00


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:		1,254,342.00


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
09/30/2009	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:

9/30/2009

Balance on Statement:

1,254,342.00

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:

1,254,342.00


*		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:	302,696.65

		Collateral Account:	541,474.65

		Collection Account:	1,254,342.00

*Other Accounts:

	Bank of Scotland — Pinocchio	Time Deposit	219,161.83	Currency: GBP

	Bank of Scotland — Basil	Time Deposit	247,376.97	Currency: GBP

	Edge Entertainment		172.89

	KL- PWI account		731.10

	BLT Venture	JV Account	70,269.08

	BLT Venture	JV Account	330.45

	KL\7 Venture	JV Account	40,002.87

	Denial Venture	JV Account	244,987.31

	Cracker LLC	JV Account	15,569.01

	Swing	JV Account	13,031.13

*Other Monies:

		**Petty Cash (from below):	0.00



TOTAL CASH AVAILABLE:				2,950,145.94

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		payments not made
Creditor, Lessor, Etc.	(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

9,593.51

561,661.12

31 - 60 days

61 - 90 days

91 - 120 days

Over 120 days

TOTAL:

9,593.51

0.00

561,661.12

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								Quarterly Fees
Ending (Date)	Total Disbursements		Quarterly Fees		Date Paid	Amount Paid		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
30-Sep-2009		222,369.77		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

				83,850.00			83,975.00		(125.00	)


*		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

Gross

Date of Order

Compensation

Authorizing

*Authorized Gross

Paid During the

Name of Insider

Compensation

Month

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

Date of Order

Authorizing

Amount Paid

Name of Insider

Compensation

Description

During 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)


	Sep 09
Ordinary Income/Expense
Income
KL International Sales		10,000.00
materials		8,952.93

Total Income		18,952.93
Cost of Goods Sold
Vision Expenses		2,025.17
Vision Sales Fee		3,824.93

Total COGS		5,850.10

Gross Profit		13,102.83
Expense
Agents Fees		7,500.00
Bank Service Charges
City National — Service Charge		50.00
Comerica — Sevice Charge		281.84

Total Bank Service Charges		331.84
Copy Machine		22.49
Delivery & Distribution Expense
Billable Materials		3,275.22
Elements		590.70
Marketing		520.00
Shipping		27.32

Total Delivery & Distribution Expense		4,413.24
Dues and Subscriptions		99.95
Insurance
Dental		319.00
Health		2,484.00
Health Acct.		69.22

Total Insurance		2,872.22
Internet		136.16
Office Supplies		632.72
Parking		330.00
Payroll
Payroll cost — Employees		12,007.14
Payroll Fee		275.80
Responsible Officer		18,146.86

Total Payroll		30,429.80
Professional Fees
Legal Fees		5,271.00

Total Professional Fees		5,271.00
Rent		4,566.51
SEC Reporting		1,836.00
Storage		4,918.84
Telephone		287.12
Telephone / E-mail Exepnses		441.02

Total Expense		64,088.91

Net Ordinary Income		-50,986.08
Other Income/Expense
Other Income
Interest Income		55.90

Total Other Income		55.90

Net Other Income		55.90

Net Income		-50,930.18

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)


	Sep 30, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,254,342.00
Comerica — DIP		302,696.65
KL Cash Collateral — JP Morgan		541,474.65

Total Checking/Savings		2,098,513.30
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		225,000.00
AR — KL		258,333.35
AR — Vision		63,327.77

Total Accounts Receivable		561,661.12

Total Current Assets		2,660,174.42

TOTAL ASSETS		2,660,174.42

LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		-9,593.51

Total Accounts Payable		-9,593.51

Total Current Liabilities		-9,593.51

Total Liabilities		-9,593.51
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		993,255.43
Net Income		-668,941.41

Total Equity		2,669,767.93

TOTAL LIABILITIES & EQUITY		2,660,174.42

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-99.2 - December 18, 2009

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