KUSHNER LOCKE CO - FORM 8-K - EX-99.3

KUSHNER LOCKE CO - FORM 8-K - EX-99.3 - December 18, 2009

Attached files

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-99.1 - EX-99.1 - KUSHNER LOCKE CO	v54662exv99w1.htm

Exhibit 99.3

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:	96
	Debtor(s).	For the Month Ending:	10/31/2009

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


1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			11,342,391.65


2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS			11,039,695.00


3. BEGINNING BALANCE:			302,696.65


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

Accounts Receivable — Pre-filing

General Sales

Other (Specify) Internal Transfers		35,000.00

**Other (Specify)


TOTAL RECEIPTS THIS PERIOD:			35,000.00


5. BALANCE:			337,696.65


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

Disbursements (from page 2)		57,637.09


TOTAL DISBURSEMENTS THIS PERIOD:***			57,637.09


7. ENDING BALANCE:			280,059.56


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
10/02/2009	Wire	ADP	Payroll Fees		$	86.30	$	86.30
10/12/2009	Wire	Payroll Tax	Payroll		$	5,902.08	$	5,902.08
10/12/2009	8619	Payroll	Payroll		$	1,379.03	$	1,379.03
10/12/2009	8620	Payroll	Payroll		$	8,260.51	$	8,260.51
10/12/2009	8621	Payroll	Payroll		$	2,788.12	$	2,788.12
10/14/2009	Wire	Comerica Bank	Bank Fee		$	299.22	$	299.22
10/16/2009	Wire	ADP	Payroll Fees		$	86.30	$	86.30
10/16/2009	1522	Accurate Express	Shipping		$	42.33	$	42.33
10/16/2009	1523	Alice Neuhauser Expenses	Phone / Internet / Meals		$	409.28	$	409.28
10/16/2009	1524	Arrowhead	Office Supplies		$	9.15	$	9.15
10/16/2009	1525	Bowne of Los Angeles	SEC Reporting		$	590.00	$	590.00
10/16/2009	1526	ITE Solutions	Computer / IT		$	862.50	$	862.50
10/16/2009	1527	Recall	Storage		$	918.84	$	918.84
10/16/2009	1528	Xerox	Office Supplies		$	22.49	$	22.49
10/19/2009	1529	Point 360	Marketing		$	480.00	$	480.00
10/20/2009	Wire	Payroll Tax	Payroll		$	6,464.51	$	6,464.51
10/20/2009	8622	Payroll	Payroll		$	1,379.03	$	1,379.03
10/20/2009	8623	Payroll	Payroll		$	8,953.52	$	8,953.52
10/20/2009	8624	Payroll	Payroll		$	2,788.12	$	2,788.12
10/23/2009	Wire	ADP	Payroll Fees		$	196.95	$	196.95
10/23/2009	1530	AT & T	Internet		$	86.12	$	86.12
10/23/2009	1531	AT & T	Phone		$	289.11	$	289.11
10/23/2009	1532	Global Media Television	Agent Fees		$	3,750.00	$	3,750.00
10/23/2009	1533	Keren Aminia Expenses	Office Supplies / Internet / Meals		$	1,347.19	$	1,347.19
10/23/2009	1534	Kevin Marino Expenses	Internet		$	140.10	$	140.10
10/23/2009	1535	Thomas R. Conroy	Computer / IT		$	310.00	$	310.00
10/30/2009	Wire	ADP	Payroll Fees		$	86.30	$	86.30
10/30/2009	1536	Anthem Blue Cross	Insurance		$	2,484.00	$	2,484.00
10/30/2009	1537	Blue Shield	Insurance		$	638.00	$	638.00
10/30/2009	1538	Digital Post Services	Marketing		$	479.75	$	479.75
10/30/2009	1539	ITE Solutions	Computer / IT		$	1,035.00	$	1,035.00
10/30/2009	1540	Kevin Marino Expenses	Postage / Meals		$	101.73	$	101.73
10/30/2009	1541	New Beginnings Enterprises	Rent / Parking		$	4,896.51	$	4,896.51
10/30/2009	1542	New Wave Entertainment	Marketing		$	75.00	$	75.00

		TOTAL DISBURSEMENTS THIS PERIOD:		0.00	57,637.09		$	57,637.09


*		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:			10/31/2009	Balance on Statement:		$	291,426.74

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


		1533		10/23/09	$	1,347.19
		1535		10/23/09	$	310.00
		1536		10/30/09	$	2,484.00
		1537		10/30/09	$	638.00
		1538		10/30/09	$	479.75
		1539		10/30/09	$	1,035.00
		1540		10/30/09	$	101.73
		1541		10/30/09	$	4,896.51
		1542		10/30/09	$	75.00

TOTAL OUTSTANDING CHECKS:								11,367.18


Bank statement Adjustments:

Explanation of Adjustments-

ADJUSTED BANK BALANCE:							$	280,059.56


*		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:	96
	Debtor(s).	For the Month Ending:	10/31/2009

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

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS

12,084,668.06

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

11,543,193.41

3. BEGINNING BALANCE:

541,474.65

4. RECEIPTS DURING CURRENT PERIOD:

Accounts Receivable — Post-filing

25,027.00

Accounts Receivable — Pre-filing

General Sales

Other (Specify)

Interest

57.06

**Other (Specify)

TOTAL RECEIPTS THIS PERIOD:

25,084.06

5. BALANCE:

566,558.71

6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD

Transfers to Other DIP Accounts (from page 2)

35,000.00

Disbursements (from page 2)

0.00

TOTAL DISBURSEMENTS THIS PERIOD:***

35,000.00

7. ENDING BALANCE:

531,558.71

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
10/21/2009	Wire	Kushner-Locke	Internal Transfer		35,000.00				35,000.00
									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
									0.00

		TOTAL DISBURSEMENTS THIS PERIOD:			35,000.00		0.00	$	35,000.00


*		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:	10/31/2009	Balance on Statement:	$	531,558.71


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:				$	531,558.71


*		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

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


1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS		1,305,929.80


2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS		51,587.80


3. BEGINNING BALANCE:		1,254,342.00


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:		1,254,342.00


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

Disbursements (from page 2)	100.00


TOTAL DISBURSEMENTS THIS PERIOD:***		100.00


7. ENDING BALANCE:		1,254,242.00


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
10/31/2009	Fee	City National Bank	Bank Fee			$	100.00		100.00
									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		100.00	$	100.00


*		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:

10/31/2009

Balance on Statement:

1,254,242.00

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:

1,254,242.00


*		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:

280,059.56

Collateral Account:

531,558.71

Collection Account:

1,254,242.00

*Other Accounts:

Bank of Scotland - Pinocchio

Time Deposit

218,672.86

Currency: GBP

Bank of Scotland - Basil

Time Deposit

247,417.64

Currency: GBP

Edge Entertainment

0.00

KL- PWI account

731.10

BLT Venture

JV Account

70,269.08

BLT Venture

JV Account

330.45

KL\7 Venture

JV Account

40,007.96

Denial Venture

JV Account

245,049.73

Cracker LLC

JV Account

15,569.01

Swing

JV Account

13,031.13

*Other Monies:

**Petty Cash (from below):

0.00

TOTAL CASH AVAILABLE:

2,916,939.23

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	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

0.00

560,976.42

31 - 60 days

61 - 90 days

91 - 120 days

Over 120 days

TOTAL:

0.00

560,976.42

V. INSURANCE COVERAGE

Policy Expiration

Premium Paid

Name of Carrier

Amount of 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 Fees
Quarterly Period 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


*		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)


	Oct 09
Ordinary Income/Expense
Income
KL International Sales		22,500.00
Royalties		6,277.00

Total Income		28,777.00

Gross Profit		28,777.00
Expense
Agents Fees		3,750.00
Bank Service Charges
City National — Service Charge		100.00
Comerica — Sevice Charge		299.22

Total Bank Service Charges		399.22
Copy Machine		22.49
Delivery & Distribution Expense
Marketing		1,034.75

Total Delivery & Distribution Expense		1,034.75
Insurance
Dental		319.00
Health		2,484.00

Total Insurance		2,803.00
Internet		86.12
IT / Computers		2,207.50
Office Supplies		1,356.34
Payroll
Payroll cost — Employees		12,007.12
Payroll Fee		455.85
Responsible Officer		25,907.80

Total Payroll		38,370.77
Postage and Delivery		42.33
Professional Development		44.00
Professional Fees
Legal Fees		5,121.62

Total Professional Fees		5,121.62
Storage		4,918.84
Telephone		289.11
Telephone / E-mail Exepnses		549.38
Travel & Ent
Meals		57.73

Total Travel & Ent		57.73

Total Expense		61,053.20

Net Ordinary Income		-32,276.20

Net Income		-32,276.20

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)


	Oct 31, 09
ASSETS
Current Assets
Checking/Savings
City National — Collection Acco		1,254,242.00
Comerica — DIP		280,059.56
Due from Vision/to Vision		4,424.70
KL Cash Collateral — JP Morgan		531,501.65

Total Checking/Savings		2,070,227.91
Accounts Receivable
AR — BL		15,000.00
AR — Global Media		206,250.00
AR — KL		258,333.35
AR — Vision		81,393.07

Total Accounts Receivable		560,976.42

Total Current Assets		2,631,204.33

TOTAL ASSETS		2,631,204.33

LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		-584.69

Total Accounts Payable		-584.69

Total Current Liabilities		-584.69

Total Liabilities		-584.69
Equity
Opening Bal Equity		2,345,453.91
Retained Earnings		318,611.31
Net Income		-32,276.20

Total Equity		2,631,789.02

TOTAL LIABILITIES & EQUITY		2,631,204.33

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

CHAPTER 11 (BUSINESS)

The Kushner-Locke Company

Case Number:

Case No. LA 01-44828-SB

Operating Report Number:

Debtor(s).

For the Month Ending: