ACCEPTANCE INSURANCE COMPANIES INC - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT

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8-K - FORM 8-K - ACCEPTANCE INSURANCE COMPANIES INC	d8k.htm

Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

COMPARATIVE BALANCE SHEET

ASSETS


	9/30/09		10/31/09		11/30/09		12/31/09		1/31/10		2/28/10
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	5,431		4,422		140		2,715		1,798		2,011
Investment securities, at market	321,073		263,633		258,177		230,158		237,365		226,471
Prepaid expense & deposits	60,000		60,000		60,000		60,000		30,000		30,000

TOTAL CURRENT ASSETS	386,504		328,055		318,317		292,873		269,163		258,482


OTHER ASSETS:
Note receivable from AIC	20,000,000		20,000,000		20,000,000		20,000,000		20,000,000		20,000,000
Valuation allowance	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)
Investment in AIC, at underlying book value	2,428,472		1,691,146		1,691,146		1,691,146		1,691,146		2,947,686
Contingent claims	0		0		0		0		0		0

TOTAL OTHER ASSETS	2,428,472		1,691,146		1,691,146		1,691,146		1,691,146		2,947,686



TOTAL ASSETS	2,814,976		2,019,201		2,009,463		1,984,019		1,960,309		3,206,168

I CERTIFY UNDER PENALTY OF PERJURY THAT THIS 5 PAGE OPERATING REPORT IS TRUE AND CORRECT.


Date Submitted		March 9, 2010		Signed		/s/ Gary N Thompson				Printed Name of Signatory Gary N Thompson

Form OPR-1B

COMPARATIVE BALANCE SHEET

LIABILITIES AND STOCKHOLDERS EQUITY


	9/30/09		10/31/09		11/30/09		12/31/09		1/31/10		2/28/10
LIABILITIES:
Post-Petition debt (Sched. C)	28,111		11,340		14,418		32,285		20,563		66,980

Pre-Petition Debt:
Litigation claims	22,000,000		22,000,000		22,000,000		22,000,000		22,000,000		22,000,000
Unsecured liabilities	46,054		46,054		46,054		46,054		46,054		46,054
Unsecured debt	116,110,260		116,110,260		116,110,260		116,110,260		116,110,260		116,110,260

TOTAL LIABILITIES	138,184,425		138,167,654		138,170,732		138,188,599		138,176,877		138,223,294


SHAREHOLDERS EQUITY:
Preferred stock	0		0		0		0		0		0
Common stock	6,274,000		6,274,000		6,274,000		6,274,000		6,274,000		6,274,000
Paid-in capital	199,660,000		199,660,000		199,660,000		199,660,000		199,660,000		199,660,000
Treasury stock	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)
Retained earnings:
As of filing date	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)
After filing date	(30,328,653	)	(31,107,657	)	(31,120,473	)	(31,163,784	)	(31,175,772	)	(29,976,330	)


TOTAL SHAREHOLDERS EQUITY	(135,369,449	)	(136,148,453	)	(136,161,269	)	(136,204,580	)	(136,216,568	)	(135,017,126	)


TOTAL LIABILITIES AND SHAREHOLDER EQUITY	2,814,976		2,019,201		2,009,463		1,984,019		1,960,309		3,206,168

CASE NO: 05-80059

Form OPR-2

STATEMENT OF INCOME


	9/30/09		10/31/09		11/30/09		12/31/09		1/31/10		2/28/10
REVENUE:
Net investment income	550		560		545		331		209		206
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		0		0

OPERATING EXPENSES:
Salaries and benefits	(8,695	)	(8,705	)	(8,703	)	(8,679	)	(4,498	)	(4,561	)
Board fees and expenses	0		0		0		0		0		0
Financial advisor fees and expenses	0		0		0		0		0		0
Legal fees and expenses	(950	)	(27,999	)	(1,075	)	(30,344	)	(5,006	)	(51,710	)
Accounting fees and expenses	(3,268	)	(904	)	0		0		0		0
Actuarial services	0		0		0		0		0		0
Insurance	0		0		0		0		(525	)	0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(4,175	)	(3,259	)	(2,251	)	(3,686	)	(1,027	)	0
Overhead expenses	(787	)	(789	)	(759	)	(736	)	(789	)	(789	)
Miscellaneous	(507	)	(582	)	(573	)	(197	)	(351	)	(244	)

NET OPERATING INCOME / LOSS	(17,832	)	(41,678	)	(12,816	)	(43,311	)	(11,987	)	(57,098	)


OTHER INCOME (EXPENSE):
Interest expense	0		0		0		0		0		0
Income tax refund	0		0		0		0		0		0
Write-off of contingent claim (note)	(21,500,000	)	0		0		0		0		0
Equity in operating earnings of AIC	0		(670,186	)	0		0		0		1,335,695
Equity in unrealized losses of securities of AIC	0		(67,140	)	0		0		0		(79,155	)

TOTAL OTHER INCOME (EXPENSE)	(21,500,000	)	(737,326	)	0		0		0		1,256,540


NET INCOME (LOSS)	(21,517,832	)	(779,004	)	(12,816	)	(43,311	)	(11,987	)	1,199,442

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-3

SOURCES AND USE OF CASH


	9/30/09		10/31/09		11/30/09		12/31/09		1/31/10		2/28/10
CASH DIFFERENCE:
Current ending cash balance	5,431		4,422		140		2,715		1,798		2,011
Less ending prior month balance	(1,621	)	(5,431	)	(4,422	)	(140	)	(2,715	)	(1,798	)

NET CASH INCREASE (DECREASE)	3,810		(1,009	)	(4,282	)	2,575		(917	)	213


SOURCES OF CASH:
Net income (loss)	(21,517,832	)	(779,004	)	(12,816	)	(43,311	)	(11,987	)	1,199,442
Write-off of contingent claim	21,500,000		0		0		0		0		0
Equity in earnings and unrealized losses of AIC	0		737,326		0		0		0		(1,256,540	)

Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	21,452		57,441		5,456		28,020		0		10,894
Prepaid expenses & deposits	0		0		0		0		30,000		0
Increase in:
Post- petition debt	190		0		3,078		17,866		0		46,417
Pre-petition debt	0		0		0		0		0		0

TOTAL SOURCES OF CASH	3,810		15,763		(4,282	)	2,575		18,013		213


USES OF CASH:
Increase in:
Receivables	0		0		0		0		0		0
Marketable securities	0		0		0		0		(7,208	)	0
Decrease in:
Post- petition debt	0		(16,772	)	0		0		(11,722	)	0
Pre-petition debt	0		0		0		0		0		0

TOTAL USES OF CASH	0		(16,772	)	0		0		(18,930	)	0


NET CASH INCREASE (DECREASE)	3,810		(1,009	)	(4,282	)	2,575		(917	)	213

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

SCHEDULE C

SCHEDULE OF POST PETITION DEBT

ACCEPTANCE INSURANCE COMPANIES INC - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT - March 10, 2010