TMST, Inc. - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT

Attached files

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8-K - FORM 8-K - TMST, Inc.	d259658d8k.htm

Exhibit 99.1


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al. (1)			CASE NUMBER:				09-17787

OFFICE OF THE UNITED STATES TRUSTEE - BALTIMORE DIVISION

MONTHLY OPERATING REPORT

CHAPTER 11

BUSINESS DEBTORS

Form 2-A

COVER SHEET AND QUESTIONNAIRE

For Period Ended October 31, 2011


Accounting Method:		x Accrual Basis				¨ Cash Basis

THIS REPORT IS DUE 20 DAYS AFTER THE END OF THE MONTH

Mark One Box for Each

Required Document:

Debtor must attach each of the following reports/documents unless the U. S. Trustee has waived the requirement in writing. File the original with the Clerk of Court. Submit a duplicate, with original signature, to the U. S. Trustee.


Report/Document Attached	Previously Waived	REQUIRED REPORTS/DOCUMENTS

x	¨	1. Cash Receipts and Disursements Statement (Form 2-B)

x	¨	2. Balance Sheet (Form 2-C)

x	¨	3. Profit and Loss Statement (Form 2-D)

x	¨	4. Supporting Schedules (Form 2-E)

x	¨	5. Disbursements Summary (Form 2-F)

¨	x	6. Narrative (Form 2-G)

x	¨	7. Bank Statements for All Bank Accounts (See Exhibit A)

x	¨	8. Bank Statement Reconciliations for all Bank Accounts (See Exhibit A)


QUESTIONNAIRE	Yes			No

Please answer the questions below:

1. Is the business still operating?	x	(2	)	¨

2. Were any assets (other than inventory) sold this month?	¨			x

3. Were all employees timely paid this month?	x			¨

4. Are all insurance policies and operating licenses current and in effect?	x	(3	)	¨

5. Did you open any new bank accounts this month?	¨			x

6. Did you deposit all receipts into your DIP account this month?	x			¨

7. Have all taxes been timely paid (payroll, sales, etc.)?	x			¨

8. Are you current on U.S. Trustee quarterly fees payments?	x			¨

I declare under penalty of perjury that the following Monthly Operating Report, and any statements and attachments thereto are true, accurate and correct to the best of my belief.


Executed on:	November 18, 2011	Print Name:	Joel I. Sher
		Signature:	/s/ Joel I. Sher
		Title:	Chapter 11 Trustee

(1)

Includes the following Debtors: TMST, Inc. f/k/a Thornburg Mortgage, Inc. (Case No. 09-17787), TMST Home Loans, Inc. f/k/a Thornburg Mortgage Home Loans, Inc. (Case No. 09-17791), TMST Hedging Strategies, Inc. f/k/a Thornburg Mortgage Hedging Strategies, Inc. (Case No. 09-17792), and TMST Acquisition Subsidiary, Inc. f/k/a Thornburg Acquisition Subsidiary, Inc. (Case No. 09-17790). The Adfitech, Inc. Monthly Operating Report is filed separately under Case No. 09-17788.

(2)	The Chapter 11 Trustee is in the process of winding-up all operations.

(3)	TMST Home Loans, Inc. is currently in the process of withdrawing state licenses due to the sale of the Servicing Portfolio.

Page 1 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT (1)

For Period: 10/1/2011 to 10/31/2011

CASH FLOW SUMMARY


	Current Month			Accumulated
Beginning Cash Balance	$	105,757,333	(2)	$	16,847,967	(2)

2. Cash Receipts
Operations		21,685			27,607,064
Sale of Assets		—			80,041,433
Loans/advances		—			18,364,080
Other					22,994,972

Total Cash Receipts	$	21,685		$	149,007,549

3. Cash Disbursements
Operations		508,304			22,247,920
Debt Service/Secured loan payment		—			—
Professional fees/U.S. Trustee fees		379,285			20,191,167
Other					18,525,000

Total Cash Disbursements	$	887,589		$	60,964,087

4. Net Cash Flow (Total Cash Receipts less Total Cash Disbursements)		(865,904	)		88,043,462

5. Ending Cash Balance (to Form 2-C)	$	104,891,429	(3)	$	104,891,429	(3)

CASH BALANCE SUMMARY


Account Name/Number	Institution	Bank Balance		Deposits In Transit		Outstanding Checks		Book Balance
xxxxxxx2822	New Mexico Bank & Trust	$	3,899,228		—	$	306,132		3,593,096
xxxxxxx0805	J.P. Morgan		—		—		—		—
xxxxxxx1807	New Mexico Bank & Trust		5,522		—		—		5,522
xxxxxxx2954	New Mexico Bank & Trust		32,426		—		1,099		31,327
xxxxxxx2989	New Mexico Bank & Trust		1,874		—		—		1,874
xxxxxxx5856	New Mexico Bank & Trust		446,393		—		—		446,393
xxxxxxx2842	New Mexico Bank & Trust		4,932,667		—		—		4,932,667
xxxxxxx9638	The Bank of New York Mellon		1,002		—				1,002
xxxxxxx9639	The Bank of New York Mellon		—		—		—		—
xxxxxxx0989	Bank of America		95,879,548		—		—		95,879,548

		$	105,198,660	$	—	$	307,229	$	104,891,429	(3)

(1)	The term “cash” as used herein includes all forms of currency (e.g., checks, cash, money orders, etc.)

(2)	Accumulated beginning cash balance is the cash available at the commencement of the case. Current month beginning cash balance equals the previous month’s ending balance.

(3)	Current Month, Accumulated, and Book cash balances are the same.

Page 2 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH DISBURSEMENTS DETAIL	Account No:	xxxxxxx2822
*(attach additional sheets as necessary)*


Date	Check No.	Payee	Description (Purpose)	Amount
10/5/2011	WIRE	ADP Inc.	Payroll - Direct deposits	$	27,107
10/6/2011	WIRE	ADP, Inc.	Payroll taxes		12,219
10/12/2011	WIRE	Quinn Emanuel Urquhart Oliver & Hedges LLP	Professional services		22,448
10/12/2011	WIRE	KPMG LLP	Professional services		8,078
10/12/2011	WIRE	Tydings & Rosenberg LLP	Professional services		8,616
10/12/2011	WIRE	Goldin Associates, LLC	Professional services		126,039
10/12/2011	WIRE	Shapiro Sher Guinot & Sandler	Professional services		199,656
10/13/2011	7472	tw telecom	Information Services		1,255
10/13/2011	7473	Lawrence F. Rodowsky	Contract Services		9,328
10/13/2011	7474	FedEX	Shipping		660
10/13/2011	7475	RR Donnelley Receivables, Inc	EDGAR Filings		3,890
10/13/2011	7476	CenturyLink	Information Services		119
10/13/2011	7477	Walsh,Anderson,Brown,Aldridge & Gallegos	Professional services		384
10/13/2011	7478	Pandesa Corporation	Information Services		7,500
10/13/2011	7479	TBConsulting	Contract Services		47,019
10/13/2011	7480	FrontBridge Technologies, Inc.	Microsoft Exchange Hosted Services		2,575
10/13/2011	7481	Epiq Bankruptcy Solutions, LLC	Professional services		3,723
10/13/2011	7482	AT&T TeleConferenceServices	TeleConference Service		9
10/13/2011	7483	Susman Godfrey	Professional services		228
10/13/2011	7484	Crystal Springs	Office Supplies		36
10/13/2011	7486	Iron Mountain Information Management	Document Storage		776
10/13/2011	7487	TMST Employee	Expense reimbursement		753
10/13/2011	7488	State of California	2010 TMST Home Loans Taxes		44,916
10/13/2011	7489	U.S. Trustee	BK court fees		9,750
10/13/2011	7490	U.S. Trustee	BK court fees		325
10/19/2011	WIRE	ADP Inc.	Payroll - Direct deposits		22,556
10/20/2011	WIRE	ADP, Inc.	Payroll taxes		10,520
10/24/2011	7491	Russell-Massey and Company	Trustee Surety Bond		300,000
10/31/2011	7492	CSC	Statutory Representation		313
10/31/2011	7493	First Interstate Plaza	Office Lease_Rent		5,337

		Total Cash Disbursements		$	876,133	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 3 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH RECEIPTS DETAIL	Account No:	xxxxxxx2822
*(attach additional sheets as necessary)*


Date	Payor	Description (Purpose)	Amount
10/4/2011	Luxury Mortgage Corp	Stay Agreement	$	10,000
10/25/2011	Wells Fargo Bank	Reinvestment Income		72
10/25/2011	US Bank	Credit Risk Advisor Fee		541
10/25/2011	Wells Fargo Bank	Credit Risk Advisor Fee		760
10/25/2011	Wells Fargo Bank	Credit Risk Advisor Fee		313
10/27/2011	Luxury Mortgage Corp	Stay Agreement		10,000

		Total Cash Receipts	$	21,685	(1)

(1)	Total for all accounts should agree with total cash receipts listed on Form 2-B, page 2

Page 4 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH DISBURSEMENTS DETAIL	Account No:	xxxxxxx2954
*(attach additional sheets as necessary)*


Date	Check No.	Payee	Description (Purpose)	Amount
10/13/2011	15556	State of Virginia	2010 TMST Home Loans Taxes	$	10
10/13/2011	15557	State of New Jersey	2010 TMST Home Loans Taxes		1,069
10/13/2011	15558	MIDCON Data Services LLC	Document Storage		2,065
10/13/2011	15559	CT Corporation System	Statutory Representation		2,158
10/13/2011	15560	U.S. Trustee	BK court fees		325
10/13/2011	15561	U.S. Trustee	BK court fees		325

		Total Cash Disbursements		$	5,953	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 5 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH RECEIPTS DETAIL		Account No: xxxxxxx2954
*(attach additional sheets as necessary)*


Date	Payor	Description (Purpose)	Amount
		Total Cash Receipts	$	0	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 6 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH RECEIPTS DETAIL		Account No: xxxxxxx0805
*(attach additional sheets as necessary)*


Date	Payor	Description (Purpose)	Amount
		Total Cash Receipts	$	0	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 7 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH DISBURSEMENTS DETAIL		Account No: xxxxxxx2989
*(attach additional sheets as necessary)*


Date	Check No.	Payee	Description (Purpose)	Amount
10/14/2011	ACH	ADP Financial Services	Payroll processing	$	96
10/21/2011	ACH	ADP Financial Services	Payroll processing		240
10/28/2011	ACH	ADP Financial Services	Payroll processing		168

			Total Cash Disbursements	$	503	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 8 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH RECEIPTS DETAIL		Account No: xxxxxxx5856
*(attach additional sheets as necessary)*


Date	Payor	Description (Purpose)	Amount
		Total Cash Receipts	$	0	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 9 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH RECEIPTS DETAIL		Account No: xxxxxxx1807
*(attach additional sheets as necessary)*


Date	Payor	Description (Purpose)	Amount
10/31/2011	New Mexico Bank & Trust	Interest Paid	$	0

		Total Cash Receipts	$	0	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 10 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH RECEIPTS DETAIL		Account No: xxxxxxx2842
*(attach additional sheets as necessary)*


Date	Payor	Description (Purpose)	Amount
		Total Cash Receipts	$	0	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 11 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS AND DISBURSEMENTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH DISBURSEMENTS DETAIL		Account No: xxxxxxx0989
*(attach additional sheets as necessary)*

Date

Check No.

Payee

Description (Purpose)

Amount

10/31/2011

Bank of America

Bank and Technology Service Fee

5,000

Total Cash Disbursements

5,000

(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 12 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-B

CASH RECEIPTS STATEMENT

For Period: 10/1/2011 to 10/31/2011


CASH RECEIPTS DETAIL		Account No: xxxxxxx0989
*(attach additional sheets as necessary)*


Date	Payor	Description (Purpose)	Amount
		Total Cash Receipts	$	0	(1)

(1)	Total for all accounts should agree with total cash disbursements listed on Form 2-B, page 2

Page 13 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-C

COMPARATIVE BALANCE SHEET

For Period Ended: October 31, 2011


	Current Month			Petition Date (1)
*ASSETS*
Current Assets:
Cash and Cash Equivalents (from Form 2-B)	$	104,891,429		$	16,848,967
Accounts Receivable (from Form 2-E)		1,048,033			9,403,326
Receivable from Officers, Employees, Affiliates (2)		—			—
Inventory		—			—
Other Current Assets (List): Prepaid expenses & retainers		1,145,167			4,807,453
Accrued interest receivable		—			47,878

Total Current Assets		107,084,629			31,107,624

Fixed Assets:
Land		—			—
Building		—			—
Equipment, Furniture and Fixtures		1,201,340			1,201,340

Total Fixed Assets		1,201,340			1,201,340

Less: Accumulated Depreciation		1,201,340			533,109

Net Fixed Assets		—			668,231

Other Assets (List): Restricted cash		—			201,432,689
Mortgage servicing portfolio		—			87,104,385
Investment in subsidiaries (3)		(6,000,000	)		21,244,747
Loan held for sale		1,985,230			8,359,404
Deposits		3,605,000			300,000

TOTAL ASSETS	$	106,674,859		$	350,217,080

*LIABILITIES*
Post-petition Accounts Payable (from Form 2-E)	$	936,830		$	—
Post-petition Accrued Professional Fees (from Form 2-E)		4,922,240			—
Post-petition Taxes Payable (from Form 2-E)		—			—
Post-petition Notes Payable		—			—
Other Post-petition Payable(List): Contingent obligations (4)		3,296,287			—
		—

Total Post Petition Liabilities		9,155,356			—

Pre Petition Liabilities:
Secured Debt		—			—
Priority Debt		—			—
Unsecured Debt (3)		3,421,750,874			3,664,898,118

Total Pre Petition Liabilities		3,421,750,874			3,664,898,118

TOTAL LIABILITIES		3,430,906,230			3,664,898,118

*OWNERS’ EQUITY*
Owner’s/Stockholder’s Equity		3,640,741,359			3,640,741,359
Retained Earnings - Prepetition		(6,955,422,396	)		(6,955,422,396	)
Retained Earnings - Post-petition (5)		(9,550,334	)		—

TOTAL OWNERS’ EQUITY		(3,324,231,371	)		(3,314,681,037	)

TOTAL LIABILITIES AND OWNERS’ EQUITY	$	106,674,859		$	350,217,080

(1)	Petition date values are taken from the Debtors’ balance sheet as of the petition date or are the values listed on the Debtors’ schedules.

(2)	TMST, Inc. has requested reimbursement from SAF for damages incurred. No receivable has been recorded.

(3)	On March 15, 2010 the Second Amended Chapter 11 Plan of Reorganization for ADFITECH, Inc. became effective. TMST Home Loans interests were deemed cancelled on the Effective Date and Senior Notes Guarantee Claims against TMST, Inc. were reduced by $38.6 million under the plan.

Pre-petition unsecured debt includes a $1.1 billion fair value adjustment for Senior Subordinated Secured Notes recorded under GAAP. Total pre-petition liabilities prior to the fair value adjustment is $4,542,124,192.

(4)	Includes cash payments received that will require bankruptcy court ruling to resolve ownership issues.

(5)	Post-petition Retained Earning includes a loss of $4.2 million related to 2009 and income of $3 million related to 2010.

Page 14 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-D

PROFIT AND LOSS STATEMENT

For Period From: October 1, 2011 to October 31, 2011


	Current Month			Post-petition Accumulated Total (1)
Operating Revenue
Interest income (2)	$	—		$	5,637,680
Mortgage servicing income		1,685			21,833,336

Net Operating Revenue		1,685			27,471,016

Total interest expense / (benefit) (3)		—			(1,195,076	)

Gross Profit		1,685			28,666,092

Operating Expenses
Officer Compensation		—			895,390
Selling, General and Administrative		160,144			27,708,473
Rents and Leases		5,622			943,860
Depreciation, Depletion and Amortization		—			668,240
Other (list): ____________________		—			—
____________________		—			—

Total Operating Expenses		165,766			30,215,963

Operating Income / (Loss)		(164,081	)		(1,549,871	)

Non-Operating Income / (Expenses)
Earnings from subsidiaries		—			3,368,902
Other Non-Operating Income (4)		—			13,692,097

Net Non-Operating Income / (Expenses)		—			17,060,999

Reorganization Expenses
Legal and Professional Fees		714,717			24,684,998
Other Reorganization Expense		—			671,530

Total Reorganization Expenses		714,717			25,356,528

Net Income / (Loss) Before Income Taxes		(878,798	)		(9,845,400	)

Federal and State Income Tax Expense / (Benefit) (5)		—			(295,066	)

NET INCOME / (LOSS)	$	(878,798	)	$	(9,550,334	)

(1)	Accumulated Totals include all revenue and expenses since the petition date.

(2)	Accumulated total includes approximately $4.5 million of $19.0 million in certain Owner Trust residual interest distributions that may require bankruptcy court ruling to resolve ownership issues. To be conservative, the Company has not recorded a $14.5 million receivable or the related income.

(3)	Accumulated total reflects amortization of derivatives.

(4)

Accumulated total includes an approximately $1 million settlement from Bank of America, $8 million gain on the reorganization of Adfitech, Inc., a $3.9 million gain on the servicing portfolio, a $3.3 million loss incurred on the whole loan liquidation and a $3.9 million gain on cancellation of auction swaps agreements by CSFB and RBS as reported in each entity’s respective bankruptcy claim filings.

(5)

In early January 2010, the Trustee signed a Consent Agreement with the Internal Revenue Service to change TMST, Inc.’s method of accounting related to the reporting of taxable income associated with REMIC regular interests. Due to the large 2009 operating losses for TMST, Inc. no tax liability was incurred.

For tax year 2010, the Trustee was advised TMST, Inc. no longer qualified as a REIT and filed a consolidated return. Due to prior net operating losses, no tax liability is anticipated in 2010.

Page 15 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-E

SUPPORTING SCHEDULES

For Period: October 1, 2011 to October 31, 2011

POST PETITION TAXES PAYABLE SCHEDULE


	Beginning Balance		Amount Accrued		Amount Paid		Date Paid		Check Number		Ending Balance
Income Tax Withheld
Federal	$	—	$	8,462	$	8,462		10/6/2011		Wire	$	—
				7,385		7,385		10/20/2011		Wire		—
State		—		1,683		1,683		10/6/2011		Wire		—
				1,422		1,422		10/20/2011		Wire		—
						—
FICA Tax Withheld		—		934		934		10/6/2011		Wire		—
				782		782		10/20/2011		Wire		—
Employer’s FICA Tax		—		1,114		1,114		10/6/2011		Wire		—
				932		932		10/20/2011		Wire		—
Unemployment Tax
Federal		—				—						—
						—
State		—		26		26		10/6/2011		Wire		—
						—						—
Sales, Use & Excise Taxes		—		—		—						—
Property Taxes		—		—		—						—
Accrued Income Tax
Federal		—		—		—						—
State		—		44,916		44,916		10/13/2011		7488
State		—		10		10		10/13/2011		15556
State		—		1,069		1,069		10/13/2011		15557

TOTALS	$	—	$	68,734	$	68,734					$	—

INSURANCE SCHEDULE


	Carrier	Amount of Coverage		Expiration Date	Premiums Paid Through
Workers’ Compensation	The Cincinnati Insurance Co.	$	1,000,000/incident	7/1/2012	7/1/2012
General Liability	The Cincinnati Insurance Co.	$	1,000,000/incident	8/11/2011	8/11/2012
Property (Fire, Theft) (1)	N/A
Vehicle (1)	N/A
Directors & Officers (Excess)	N/A
Directors & Officers (Primary)	N/A
Trustee Surety Bond	Liberty Mutual Insurance Company		120,000,000	10/28/2011	10/28/2012

(1)	Commercial Property and Vehicle coverage are included in the General Liability Commercial Package policy.

Page 16 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-E

SUPPORTING SCHEDULES

For Period: 10/1/2011 to 10/31/2011

ACCOUNTS RECEIVABLE AND POST PETITION PAYABLE AGING


Due	Accounts Receivable (1)			Post Petition Accounts Payable (2)
Under 30 days	$	104,986		$	793,647
30 to 60 days		39,666			785,716
61 to 90 days		—			610,542
91 to 120 days		841			166,800
Over 120 days		492,676			3,502,363
Unavailable		283,719	(3)

Total Post Petition		921,888

Pre Petition Amounts		126,145	(3)

Total Accounts Receivable		1,048,033
Less: Bad Debt Reserve		—

Net Accounts Receivable (to Form 2-C)	$	1,048,033

Total Post Petition Accounts Payable				$	5,859,069

(1)	See Exhibit B for Accounts Receivable Aging

(2)	See Exhibit C for Accounts Payable Aging

(3)	Receivable amounts include balances due from multiple mortgage loan holders. Aging of the balances due is not available.

SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS


	Month-end Retainer Balance		Current Month’s Accrual		Paid in Current Month		Date of Court Approval	Month-end Balance Due * (1)
Debtor’s Counsel (2)	$	—	$	—	$	—		$	—
Debtor’s Special Counsel (3)		310,304		—		—			449,718
Debtor’s Financial Advisor		—		—		—			191
Creditors’ Committee’s Counsel		100,000		30,000		31,064			232,755
Unsecured Creditors’ Financial Advisor		—		—		—			7,150
Chapter 11 Trustee (4)		—		75,000		—			1,800,000
Trustee’s Counsel		—		350,000		199,656			1,465,005
Trustee’s Financial Advisor		—		200,000		126,039			943,432
Trustee’s Tax Advisor (5)		—		10,000		8,078			16,857
Claims Agent		—		3,500		3,723			7,132

Total	$	410,304	$	668,500	$	368,560		$	4,922,240

*	Balance due to include fees and expenses incurred but not yet paid.

(1)	Includes estimates for amounts that may be due to professionals for which an invoice for services had not been received.

(2)	Retainer Balance, net of outstanding fees, was returned to TMST, Inc. on August 3, 2010

(3)	Orrick, Herrington & Sutcliffe LLP is no longer Debtors’ Special Counsel. The current balance due is the subject of damages in the adversary proceeding filed against Orrick, Herrington & Sutcliffe LLP and other SAF related parties.

(4)	Chapter 11 Trustee commission is an estimate based on time spent performing the Trustee function at customary rates. The actual commission awarded is subject to Bankruptcy Court approval and will vary from the estimate.

(5)

The Chapter 11 Trustee was authorized to retain KPMG LLP to provide tax compliance and consulting services on May 26, 2010 pursuant to their February 26, 2010 engagement letter. Payments for services rendered prior to February 28, 2010 are reported pursuant to the Ordinary Course Professional Compensation Procedures.

Page 17 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-E

SUPPORTING SCHEDULES

For Period: 10/1/2011 to 10/31/2011

SCHEDULE OF PAYMENTS AND TRANSFERS TO PRINCIPALS/EXECUTIVES**


Payee Name	Position	Nature of Payment	Amount
N/A

**	List payments and transfers of any kind and in any form made to or for the benefit of any proprietor, owner, partner, shareholder, officer or director.

Page 18 of 19


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Form 2-F

DISBURSEMENT SUMMARY

For the Month Ended: October 31, 2011

QUARTERLY DISBURSEMENT CALCULATION


	TMST, Inc., et al.
1. Disbursements made in calendar quarter
October 2011	$	887,589
November 2011		—
December 2011		—

Quarterly Total	$	887,589

FEE SCHEDULE


Quarterly Disbursements	Fee		Quarterly Disbursements	Fee
$0 to $14,999	$	325	$1,000,000 to $1,999,999	$	6,500
$15,000 to $74,999	$	650	$2,000,000 to $2,999,999	$	9,750
$75,000 to $149,999	$	975	$3,000,000 to $4,999,999	$	10,400
$150,000 to $224,999	$	1,625	$5,000,000 to $14,999,999	$	13,000
$225,000 to $299,999	$	1,950	$15,000,000 to $29,999,999	$	20,000
$300,000 to $999,999	$	4,875	$30,000,000 or more

Interest will be assessed on Chapter 11 quarterly fees not paid by the end of the month following the end of the calander quarter pursuant to 31 U.S.C. Sec. 3717. The interest rate assessed is the rate in effect as determined by the Treasury Department at the time the account becomes past due.

Failure to pay the quarterly fee is cause for conversion or dismissal of the chapter 11 case. [11 U.S.C. Sec. 1112(b)(10)]

Page 19 of 19

Exhibit B

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Accounts Receivable

As of October 31, 2011


Post Petition	Date	Amount		Under 30 days		30 to 60 days		61 to 90 days		91 to 120 days		Over 120 days		Unavailable
Reimbursement Simmons_FedEx (1)	8/7/2009		98		—		—		—		—		98		—
Reimbursement Simmons_FedEx (1)	8/14/2009		49		—		—		—		—		49		—
Reimbursement Simmons_FedEx (1)	9/11/2009		47		—		—		—		—		47		—
Thornburg Mortgage Advisory Co	10/15/2009		492,482		—		—		—		—		492,482		—
Zuni Investors, LLC	7/26/2011		841		—		—		—		841		—		—
Zuni Investors, LLC	10/1/2011		39,666		—		39,666		—		—		—		—
Zuni Investors, LLC	10/21/2011		45,165		45,165		—		—		—		—		—
Zuni Investors, LLC	10/31/2011		59,820		59,820		—		—		—		—		—
Borrower Escrow Advance Balance (2)	Various		272,828		—		—		—		—		—		272,828
Borrower Corporate Advance Balance (2)	Various		10,828		—		—		—		—		—		10,828
Borrower Inspection Fees (2)	Various		63		—		—		—		—		—		63

Total Post Petition Accounts Receivable		$	921,888	$	104,986	$	39,666	$	—	$	841	$	492,676	$	283,719


Pre Petition	Date	Amount
Premium Recapture	4/30/2009		6,887
Borrower Escrow Advance Balance (2)	Various		119,108
Borrower Inspection Fees (2)	Various		150

Total Pre Petition Accounts Receivable		$	126,145

(1)	Employee expenses appear to have been for personal matters.

(2)	Receivable amounts include balances due from multiple mortgage loan holders. Aging of the balances due is not available.

Page 1 of 1

Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of October 31, 2011


Vendor	Date		Amount		Under 30 days		30 to 60 days		61 to 90 days		91 to 120 days		Over 120 days
Thornburg Mortgage Advisory Co		05/15/09		40,290		—		—		—		—		40,290
Orrick, Herrington & Sutcliffe LLP		05/31/09		21,469		—		—		—		—		21,469
Orrick, Herrington & Sutcliffe LLP		06/30/09		19,410		—		—		—		—		19,410
Orrick, Herrington & Sutcliffe LLP		07/31/09		127,078		—		—		—		—		127,078
Thornburg Mortgage Advisory Co		07/31/09		37,518		—		—		—		—		37,518
Orrick, Herrington & Sutcliffe LLP		08/31/09		281,761		—		—		—		—		281,761
Thornburg Mortgage Advisory Co		09/30/09		8,400		—		—		—		—		8,400
Thornburg Mortgage Advisory Co		10/15/09		29,657		—		—		—		—		29,657
Thornburg Mortgage Advisory Co		10/31/09		6,460		—		—		—		—		6,460
Thornburg Mortgage Advisory Co		11/15/09		28,453		—		—		—		—		28,453
Chapter 11 Trustee_Joel I. Sher		11/30/09		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		11/30/09		5,024		—		—		—		—		5,024
Thornburg Mortgage Advisory Co		12/15/09		1,875		—		—		—		—		1,875
Chapter 11 Trustee_Joel I. Sher		12/31/09		75,000		—		—		—		—		75,000
Quinn Emanuel Urquhart Oliver & Hedges		12/31/09		60,000		—		—		—		—		60,000
Thornburg Mortgage Advisory Co		12/31/09		29,989		—		—		—		—		29,989
Thornburg Mortgage Advisory Co		01/15/10		26,875		—		—		—		—		26,875
Chapter 11 Trustee_Joel I. Sher		01/31/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		01/31/10		4,450		—		—		—		—		4,450
Thornburg Mortgage Advisory Co		02/12/10		26,875		—		—		—		—		26,875
Chapter 11 Trustee_Joel I. Sher		02/28/10		75,000		—		—		—		—		75,000
Protiviti Inc.		02/28/10		191		—		—		—		—		191
Thornburg Mortgage Advisory Co		02/28/10		1,893		—		—		—		—		1,893
Chapter 11 Trustee_Joel I. Sher		03/31/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		03/31/10		31,325		—		—		—		—		31,325
American Stock Transfer & Trust		04/01/10		5,500		—		—		—		—		5,500
Chapter 11 Trustee_Joel I. Sher		04/30/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		04/30/10		31,325		—		—		—		—		31,325
American Stock Transfer & Trust		05/01/10		5,500		—		—		—		—		5,500
Chapter 11 Trustee_Joel I. Sher		05/31/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		05/31/10		31,325		—		—		—		—		31,325
American Stock Transfer & Trust		06/01/10		5,500		—		—		—		—		5,500
Chapter 11 Trustee_Joel I. Sher		06/30/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		06/30/10		27,575		—		—		—		—		27,575
American Stock Transfer & Trust		07/01/10		5,500		—		—		—		—		5,500
Chapter 11 Trustee_Joel I. Sher		07/31/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		07/31/10		27,575		—		—		—		—		27,575
American Stock Transfer & Trust		08/01/10		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		08/31/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		08/31/10		27,575		—		—		—		—		27,575
American Stock Transfer & Trust		09/01/10		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		09/30/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		09/30/10		25,000		—		—		—		—		25,000
American Stock Transfer & Trust		10/01/10		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		10/31/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		10/31/10		25,000		—		—		—		—		25,000
American Stock Transfer & Trust		11/01/10		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		11/30/10		75,000		—		—		—		—		75,000
Thornburg Mortgage Advisory Co		11/30/10		25,000		—		—		—		—		25,000
American Stock Transfer & Trust		12/01/10		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		12/31/10		75,000		—		—		—		—		75,000

Page 1 of 3

Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of October 31, 2011


Vendor	Date		Amount		Under 30 days		30 to 60 days		61 to 90 days		91 to 120 days		Over 120 days
Adfitech		12/31/10		50,846		—		—		—		—		50,846
Thornburg Mortgage Advisory Co		12/31/10		25,000		—		—		—		—		25,000
American Stock Transfer & Trust		01/01/11		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		01/31/11		75,000		—		—		—		—		75,000
Goldin Associates, LLC		01/31/11		49,639		—		—		—		—		49,639
J.H. Cohn LLP		01/31/11		3,749		—		—		—		—		3,749
KPMG LLP		01/31/11		1,238		—		—		—		—		1,238
Quinn Emanuel Urquhart Oliver & Hedges		01/31/11		5,860		—		—		—		—		5,860
Shapiro Sher Guinot & Sandler		01/31/11		68,211		—		—		—		—		68,211
Tydings & Rosenberg LLP		01/31/11		6,608		—		—		—		—		6,608
Thornburg Mortgage Advisory Co		01/31/11		25,000		—		—		—		—		25,000
American Stock Transfer & Trust		02/01/11		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		02/28/11		75,000		—		—		—		—		75,000
Goldin Associates, LLC		02/28/11		47,377		—		—		—		—		47,377
Quinn Emanuel Urquhart Oliver & Hedges		02/28/11		6,752		—		—		—		—		6,752
Shapiro Sher Guinot & Sandler		02/28/11		52,721		—		—		—		—		52,721
Tydings & Rosenberg LLP		02/28/11		4,769		—		—		—		—		4,769
American Stock Transfer & Trust		03/01/11		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		03/31/11		75,000		—		—		—		—		75,000
Goldin Associates, LLC		03/31/11		63,042		—		—		—		—		63,042
J.H. Cohn LLP		03/31/11		1,737		—		—		—		—		1,737
KPMG LLP		03/31/11		2,358		—		—		—		—		2,358
Quinn Emanuel Urquhart Oliver & Hedges		03/31/11		11,434		—		—		—		—		11,434
Shapiro Sher Guinot & Sandler		03/31/11		76,205		—		—		—		—		76,205
Tydings & Rosenberg LLP		03/31/11		3,299		—		—		—		—		3,299
American Stock Transfer & Trust		04/01/11		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		04/30/11		75,000		—		—		—		—		75,000
Goldin Associates, LLC		04/30/11		60,743		—		—		—		—		60,743
Quinn Emanuel Urquhart Oliver & Hedges		04/30/11		26,352		—		—		—		—		26,352
Shapiro Sher Guinot & Sandler		04/30/11		76,243		—		—		—		—		76,243
Tydings & Rosenberg LLP		04/30/11		2,368		—		—		—		—		2,368
American Stock Transfer & Trust		05/01/11		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		05/31/11		75,000		—		—		—		—		75,000
Goldin Associates, LLC		05/31/11		45,911		—		—		—		—		45,911
J.H. Cohn LLP		05/31/11		1,664		—		—		—		—		1,664
KPMG LLP		05/31/11		3,253		—		—		—		—		3,253
Quinn Emanuel Urquhart Oliver & Hedges		05/31/11		13,449		—		—		—		—		13,449
Shapiro Sher Guinot & Sandler		05/31/11		49,765		—		—		—		—		49,765
Tydings & Rosenberg LLP		05/31/11		1,940		—		—		—		—		1,940
American Stock Transfer & Trust		06/01/11		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		06/30/11		75,000		—		—		—		—		75,000
Goldin Associates, LLC		06/30/11		39,965		—		—		—		—		39,965
KPMG LLP		06/30/11		7,990		—		—		—		—		7,990
Quinn Emanuel Urquhart Oliver & Hedges		06/30/11		13,530		—		—		—		—		13,530
Shapiro Sher Guinot & Sandler		06/30/11		50,854		—		—		—		—		50,854
Tydings & Rosenberg LLP		06/30/11		1,826		—		—		—		—		1,826
American Stock Transfer & Trust		07/01/11		5,775		—		—		—		—		5,775
Chapter 11 Trustee_Joel I. Sher		07/31/11		75,000		—		—		—		75,000		—
Goldin Associates, LLC		07/31/11		30,504		—		—		—		30,504		—
KPMG LLP		07/31/11		2,020		—		—		—		2,020		—
Quinn Emanuel Urquhart Oliver & Hedges		07/31/11		5,546		—		—		—		5,546		—
Shapiro Sher Guinot & Sandler		07/31/11		45,914		—		—		—		45,914		—

Page 2 of 3

Exhibit C

TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.

Post Petition Accounts Payable

As of October 31, 2011


Vendor	Date		Amount		Under 30 days		30 to 60 days		61 to 90 days		91 to 120 days		Over 120 days
Tydings & Rosenberg LLP		07/31/11		2,042		—		—		—		2,042		—
American Stock Transfer & Trust		08/01/11		5,775		—		—		—		5,775		—
Chapter 11 Trustee_Joel I. Sher		08/31/11		75,000		—		—		75,000		—		—
Goldin Associates, LLC		08/31/11		199,361		—		—		199,361		—		—
Quinn Emanuel Urquhart Oliver & Hedges		08/31/11		1,867		—		—		1,867		—		—
Shapiro Sher Guinot & Sandler		08/31/11		330,181		—		—		330,181		—		—
Tydings & Rosenberg LLP		08/31/11		4,133		—		—		4,133		—		—
American Stock Transfer & Trust		09/01/11		5,775		—		5,775		—		—		—
Pandesa Corporation		09/20/11		37,166		—		37,166		—		—		—
Broadstreet Capital Partners, LP		09/28/11		12,075		—		12,075		—		—		—
Chapter 11 Trustee_Joel I. Sher		09/30/11		75,000		—		75,000		—		—		—
Goldin Associates, LLC		09/30/11		206,891		—		206,891		—		—		—
Quinn Emanuel Urquhart Oliver & Hedges		09/30/11		18,369		—		18,369		—		—		—
Shapiro Sher Guinot & Sandler		09/30/11		364,912		—		364,912		—		—		—
Tydings & Rosenberg LLP		09/30/11		12,610		—		12,610		—		—		—
TBConsulting		09/30/11		43,501		—		43,501		—		—		—
Epiq Bankruptcy Solutions, LLC		10/01/11		3,632		—		3,632		—		—		—
American Stock Transfer & Trust		10/01/11		5,775		—		5,775		—		—		—
AT&T TeleConference		10/01/11		10		—		10		—		—		—
ADT Security Services		10/08/11		136		136		—		—		—		—
tw telecom		10/10/11		1,274		1,274		—		—		—		—
FedEx		10/14/11		93		93		—		—		—		—
Pandesa Corporation		10/21/11		45,165		45,165		—		—		—		—
RR Donnelley		10/21/11		338		338		—		—		—		—
CenturyLink		10/22/11		119		119		—		—		—		—
FrontBridge Technologies, Inc.		10/25/11		2,575		2,575		—		—		—		—
FedEx		10/28/11		406		406		—		—		—		—
Chapter 11 Trustee_Joel I. Sher		10/31/11		75,000		75,000		—		—		—		—
Epiq Bankruptcy Solutions, LLC		10/31/11		3,500		3,500		—		—		—		—
Goldin Associates, LLC		10/31/11		200,000		200,000		—		—		—		—
Quinn Emanuel Urquhart Oliver & Hedges		10/31/11		18,000		18,000		—		—		—		—
Shapiro Sher Guinot & Sandler		10/31/11		350,000		350,000		—		—		—		—
Tydings & Rosenberg LLP		10/31/11		12,000		12,000		—		—		—		—
Crystal Springs		10/31/11		36		36		—		—		—		—
Iron Mountain Information Management		10/31/11		849		849		—		—		—		—
TBConsulting		10/31/11		45,281		45,281		—		—		—		—
TMST Employee		10/31/11		83		83		—		—		—		—
Walsh, Anderson, Brown, Aldridge & Gallegos, P.C.		10/31/11		81		81		—		—		—		—
Payroll Accrual		10/31/11		38,710		38,710		—		—		—		—

Post Petition Accounts Payable				5,859,069		793,647		785,716		610,542		166,800		3,502,363

NOTE:

Includes estimates for amounts that may be due to professionals for which an invoice for services had not been received. Amounts asserted by vendors may be subject to adjustments and bankruptcy court approval.

Page 3 of 3


DEBTOR:		TMST, Inc. f/k/a Thornburg Mortgage, Inc., et al.		CASE NO:		09-17787

Exhibit D

For Period Ending October 31, 2011

EXPLANATORY STATEMENT

RESERVATION OF RIGHTS AND GLOBAL FOOTNOTES

FOR MONTHLY OPERATING REPORT

The Trustee reserve all rights to dispute the amount, allowance, priority, treatment and/or secured or other status of any and all claims against the Debtors or their estates referred to herein. The Trustee reserve the right to (a) amend and supplement this Monthly Operating Report from time to time, and (b) assert any and all potential claims and causes of action of the Debtors’ estates regardless of whether such claim or cause of action is identified herein.

Any values presented are not and should not be deemed to be an admission, representation or waiver with respect to the actual value of any asset or amount of any liability or claim. The actual realizable value and/or fair market value of assets, liabilities and claims may differ significantly from the values presented.

The Trustee prepared this Monthly Operating Report with the assistance of his financial advisor, Goldin Associates, LLC (“Goldin”), based upon the information available to date. This Monthly Operating Report does not purport to present financial statements in accordance with Generally Accepted Accounting Principles, and the information contained herein has not been subjected to audit or review by Goldin or any other party on behalf of the Trustee.

This Explanatory Statement, Reservation of Rights and Global Footnotes is hereby incorporated by reference into, and comprises an integral part of, the Debtors’ Monthly Operating Report and should be referred to and considered in connection with any review of the report.

TMST, Inc. - FORM 8-K - EX-99.1 - MONTHLY OPERATING REPORT - November 21, 2011

Attached files

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