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EX-99.1 - ENERGY CONVERSION DEVICES, INC. MONTHLY OPERATING REPORTS - ENERGY CONVERSION DEVICES INCd340882dex991.htm

EXHIBIT 99.2

UNITED STATES BANKRUPTCY COURT

FOR THE EASTERN DISTRICT OF MICHIGAN

TRANSMITTAL OF FINANCIAL REPORTS AND

CERTIFICATION OF COMPLIANCE WITH

UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR

THE PERIOD ENDED: March 31, 2012

 

In re: United Solar Ovonic LLC    Case Number: 12-43167
   Chapter 11
   Judge: Hon. Thomas J. Tucker

Debtor.

  

United Solar Ovonic LLC/

As debtor in possession, I affirm:

 

  1. That I have reviewed the financial statements attached hereto, consisting of:

 

   Operating Statement    (Form 2)
   Balance Sheet    (Form 3)
   Summary of Operations    (Form 4)
   Monthly Cash Statement    (Form 5)
   Statement of Compensation    (Form 6)
   Schedule of In-Force Insurance    (Form 7)

and that they have been prepared in accordance with normal and customary accounting practices, and fairly and accurately reflect the debtor’s financial activity for the period stated;

 

  2. That the insurance, including workers’ compensation and unemployment insurance, as described in Section 5 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases, is in effect; and

  (If not, attach a written explanation)

   YES  x            NO  ¨

 

  3. That all post-petition taxes as described in Section 9 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases are current.

  (If not, attach a written explanation)

   YES  x            NO  ¨

 

  4. No professional fees (attorney, accountant, etc.) have been paid without specific court authorization.

  (If not, attach a written explanation)

   YES  x            NO  ¨

 

  5. All United States Trustee Quarterly fees have been paid and are current.
   YES  x            NO  ¨

 

  6. Have you filed your pre-petition tax returns?

  (If not, attach a written explanation)

   YES  x            NO  ¨

I hereby certify, under penalty of perjury, that the information provided above and in the attached documents is true and correct to the best of my information and belief.

 

Dated: April 23, 2012   

United Solar Ovonic LLC

   Debtor in Possession
   /s/ William C. Andrews
  

 

   Title:  William C. Andrews
  

  Chief Financial Officer                                     Phone: 248-299-6047

 

Form 1


OPERATING STATEMENT (P&L)(1)

Period Ending: March 31, 2012

Case No: 12-43167

 

     Current Month     Total Since Filing  

Total Revenue

   $ 3,661,904      $ 6,999,719   

Cost of Sales(2)

     6,065,470        10,418,977   
  

 

 

   

 

 

 

GROSS PROFIT

     (2,403,566     (3,419,258

EXPENSES:

    

Officer Compensation

     26,667        40,000   

Salary/Wages Expenses

     639,108        1,051,262   

Employee Benefits & Pensions

     196,089        344,912   

Payroll Taxes

     69,661        129,990   

Other Taxes

     9,526        12,505   

Rent and Lease Expense

     198,320        290,596   

Interest Expense(3)

     2,131,104        3,306,868   

Property Insurance

     1,054        1,630   

Automobile and Truck Expense

     —          —     

Utilities

     38,329        38,517   

Depreciation

     24,746        35,196   

Travel and Entertainment

     34,418        39,259   

Repairs and Maintenance

     2,918        2,918   

Advertising

     —          —     

Other – Miscellaneous

     585,983        632,731   

Other – Loss on Asset Disposal

     1,446,690        1,446,690   

Other Specify – European Costs

     247,473        388,515   

Other Specify – Restructuring

     363,442        363,442   
  

 

 

   

 

 

 

TOTAL EXPENSES:

     6,015,529        8,125,031   

OPERATING PROFIT

     (8,419,095     (11,544,289

Add: Non-Operating Income

    

Total Interest Income

     —          —     

Other (Income)

     191,225        135,581   

Less: Non-Operating Expenses

    

Professional Fees(4)

     1,061,250        1,446,000   

Other – Income Taxes

     (227,076)        (216,206
  

 

 

   

 

 

 

NET INCOME/(LOSS)

   $ (9,444,494   $ (12,909,663
  

 

 

   

 

 

 

 

(1) The operating statement and balance sheet were prepared using accrual accounting.
(2) Product sold during this period had an inventory value of $3,473,389.14. The balance of cost of sales is unabsorbed variance due to the production shutdown.
(3) The effective annual interest rate for March 31, 2012 was 10.2%.
(4) Professional fees are estimates.

 

Form 2


BALANCE SHEET

Period Ending: March 31, 2012

Case No: 12-43167

 

     Current Month     Prior Month     At Filing  

ASSETS:

      

Cash and Cash Equivalents

   $ 5,420,063      $ 4,491,493      $ 4,378,158   

Investments

     —          —          —     

Inventories, Net

     35,298,334        38,926,078        41,727,690   

Accounts Receivable – Intercompany – USO CDN

     1,773,987        1,772,238        1,788,754   

Accounts Receivable Intercompany SIT

     23,502,405        23,497,497        23,497,497   

Accounts Receivable Trade – Net

     12,451,980        12,424,029        10,597,737   

Land and Buildings

     24,397,111        29,010,567        29,010,567   

Furniture, Fixtures & Equipment

     36,964,030        39,783,946        39,507,745   

Accumulated Depreciation

     (7,747,471     (12,655,713     (12,471,130

Restricted Cash

     4,374,728        5,648,736        5,950,000   

Prepaid

     742,863        904,397        664,094   

Investment in Subsidiaries

     3,337,474        3,094,718        3,064,408   

Other Assets

     2,473,445        1,776,152        2,053,050   
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

   $ 142,988,950      $ 148,674,139      $ 149,768,570   
  

 

 

   

 

 

   

 

 

 

LIABILITIES:

      

Post-petition Liabilities:

      

Accounts Payable Trade – Net

     199,135        359,248        —     

Accounts Payable Intercompany ECD

     —          (103,853     —     

Accounts Payable Intercompany USO EU

     214,581        78,045        —     

Lease Payable

     —          —          —     

Warranty

     119,244        —          —     

Other Current Liabilities

     493,950        121,093        —     

Accrued Salaries and Wages

     283,298        274,874        —     

Accrued Taxes

     209,800        134,252        —     

Accrued Other

     1,368,165        348,615        —     
  

 

 

   

 

 

   

TOTAL Post-petition Liabilities

     2,888,172        1,212,274        —     

Secured Liabilities:

      

Secured Accounts Payable – ECD

     5,000,000        5,000,000        5,000,000   
  

 

 

   

 

 

   

 

 

 

Pre-petition Liabilities:

      

Accounts Payable Trade – Net

     6,676,736        6,676,736        6,676,736   

Accounts Payable Intercompany ECD

     795,485,836        793,295,055        792,119,291   

Accounts Payable Intercompany SIT

     600,241        600,241        600,241   

Accounts Payable Unsecured Liabilities

     —          —          —     

Lease Payable

     19,502,614        19,609,987        19,627,288   

Warranty

     10,272,209        10,272,209        10,272,209   

Other Current Liabilities

     637,324        637,324        637,324   

Accrued Salaries and Wages

     677,100        677,100        677,100   

Accrued Taxes

     636,431        636,431        636,431   

Accrued Other

     2,711,705        2,711,705        2,711,705   
  

 

 

   

 

 

   

 

 

 

TOTAL Pre-petition Liabilities

     837,200,196        835,116,789        833,958,326   

TOTAL LIABILITIES

     845,088,368        841,329,063        838,958,326   

Equity:

      

Owners Capital

     65,000,000        65,000,000        65,000,000   

Additional Paid-In-Capital

     (27,351,380     (27,351,380     (27,351,380

Retained Earnings-Pre Petition

     (726,838,375     (726,838,375     (726,838,375

Retained Earnings-Post Petition

     (12,909,663     (3,465,169     —     
  

 

 

   

 

 

   

 

 

 

TOTAL Equity

     (702,099,418     (692,654,924     (689,189,755

TOTAL LIABILITIES AND EQUITY

   $ 142,988,950      $ 148,674,139      $ 149,768,570   
  

 

 

   

 

 

   

 

 

 

 

Form 3


SUMMARY OF OPERATIONS

Period Ended: March 31, 2012

Case No: 12-43167

Schedule of Post-petition Taxes Payable

 

     Beginning
Balance
     Accrued/
Withheld
     Payments/
Deposits
     Ending
Balance
 

Income Taxes Withheld

           

Federal

     —         $ 234,170.71       $ 234,170.71         —     

State

     —           72,453.54         72,453.54         —     

Local

     —           40.51         40.51         —     

FICA Withheld

     —           105,834.73         105,834.73         —     

Employers FICA

     —           143,033.33         143,033.33         —     

Unemployment Tax

           

Federal

     —           686.19         686.19         —     

State

     —           25,017.54         25,017.54         —     

Sales, Use & Excise Taxes

   $ 176.00         3,486.60         —         $ 3,662.60   

Property Taxes

     68,891.00         126,838.00         —           195,729.00   

Workers’ Compensation(1)

     —           —           —           —     

Other

     —           —           —           —     

TOTALS

   $ 69,067.00       $ 711,561.15       $ 1,423,122.30       $ 199,391.60   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Fully insured.

AGING OF ACCOUNTS RECEIVABLE

AND POST-PETITION ACCOUNTS PAYABLE

Age in Days    0-30      31-60      Over 60  

Post Petition

        

Accounts Payable

   $ 188,313.85       $ 10,820.97       $ —     

Accounts Receivable

   $ 730,904.02       $ 4,187,369.57       $ 7,533,706.29   

For all post-petition accounts payable over 30 days old, please attach a sheet listing each such account, to whom the account is owed, the date the account was opened, and the reason for non-payment of the account.

Describe events or factors occurring during this reporting period materially affecting operations and formulation of a Plan of Reorganization: None

 

Form 4


MONTHLY CASH STATEMENT

Period Ending: March 31, 2012

Cash Activity Analysis (Cash Basis Only):                                                                                      Case No: 12-43167

 

          General
Account
     Foreign
Collection
Account(2)
     L/C
Collateral
Account
     Canadian
Payroll
Account(1)
     Petty
Cash
 

A.

   Beginning Balance    $ 4,484,790.03       $ —         $ 5,648,736.31       $ 7,753.97       $ 803.29   

B.

   Receipts      4,297,852.09         588,676.00         —           10,000.00         —     
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     (Attach separate schedule)               

C.

   Balance Available      8,782,642.12         588,676.00         5,648,736.31         17,753.97         803.29   
     (A+B)               

D.

   Less Disbursements      3,076,002.92         588,676.00         1,274,008.27         13,917.67         —     
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     (Attach separate schedule)               

E.

   ENDING BALANCE    $ 5,706,639.20       $ —         $ 4,374,728.04       $ 3,836.30       $ 803.29   
     (C-D)               

 

(1)

In Canadian Dollars

(2) 

Account Closed 3/14/12

ATTENTION: Please enter the TOTAL DISBURSEMENT from all your accounts, including cash and excluding transfers, onto the line below. This is the number that will determine your quarterly fee payment: $3,089,920.59

(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH ACCOUNT)

 

General Account:

  

1.

   Depository Name & Location    JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan

2.

   Account Number    754130292

ForeignCollection Account: (account closed 3/14/12)

     

1.

   Depository Name & Location    JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan

2.

   Account Number    771064540

L/C  Collateral Account:

  

1.

   Depository Name & Location    JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan

2.

   Account Number    983646019

CanadianPayroll Account:

     

1.

   Depository Name & Location    JP Morgan Chase Bank, N.A. Canada; Toronto, Ontario, Canada

2.

   Account Number    4683000035

Other monies on hand (specify type and location) i.e., CD’s, bonds, etc.):

None

 

Date: April 23, 2012

   
       

United Solar Ovonic LLC

       

Debtor in Possession

 

Form 5


MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS

Period Ending: March 31, 2012

Case No: 12-43167

The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)

 

Name:     Joseph P. Conroy, Executive Vice President, ECD;    Capacity:   

x  Shareholder

 Senior Vice President, USO Operations                    

     

x  Officer

     

¨   Director

     

x   Insider

Detailed Description of Duties:

 

   

Provides leadership to all operations and manufacturing related activity (Auburn Hills, Greenville 1&2, Tijuana, China JV and Marcegaglia)

 

   

Responsible for building new equipment to support the company’s technology efforts

 

   

Provides leadership to all manufacturing, engineering, quality functions (ensures the production of all manufacturing products)

 

    

Current Compensation Paid:

     Weekly         Or         Monthly   
         $ 26,666.68   

Current Benefits Paid:

     Weekly         Or         Monthly   

Health Insurance

         $ 849.92   

Life Insurance

         $ 72.15   

Accidental Death & Dismemberment Insurance

         $ 9.62   

Long-Term and Short-Term Disability Insurance

         $ 72.50   

Employee Assistance Program

         $ 1.69   

Retirement

         $ —     

Company Vehicle

         $ —     

Entertainment

         $ —     

Travel

         $ —     
        

 

 

 

Total Benefits

         $ 1,005.88   

Current Other Payments Paid:

     Weekly         Or         Monthly   

Rent Paid

         $ —     

Loans

         $ —     

Other (Describe)

         $ —     

Other (Describe)

         $ —     

Other (Describe)

   $ —            $ —     

Total Other Payments

   $ —            $ —     
     Weekly         Or         Monthly   

CURRENT TOTAL OF ALL PAYMENTS:

         $ 27,672.56   
        

 

 

 

 

Dated: April 23, 2012

  Joseph P. Conroy

 

Form 6


SCHEDULE OF IN-FORCE INSURANCE

Period Ending: March 31, 2012

Case No: 12-43167

 

INSURANCE TYPE

  

CARRIER

  

EXPIRATION DATE

Workers’ Compensation    Valley Forge Insurance Company    02/01/2013
Workers’ Compensation    American Casualty Company of Reading PA    02/01/2013
General Liability    American Casualty Company of Reading PA    02/01/2013
Property (1st Layer)    Allianz Global Risk US Insurance Company    02/01/2013
Property (2nd Layer)    Lexington Insurance Company    02/01/2013
Automobile Policy    Continental Casualty Company    02/01/2013
Umbrella Policy    Continental Casualty Company    02/01/2013
Foreign Package    Continental Casualty Company    02/01/2013
Special Risk Coverage    Great American Insurance Company    03/18/2013
Directors & Officers    Allied World National Assurance Company    09/30/2012
Directors & Officers    Illinois National Insurance Company    09/30/2012
Directors & Officers    Beazley Insurance Company, Inc. (Lloyd’s of London)    09/30/2012
Employee Practices Liability    Starr Indemnity & Liability Company    09/30/2012
Fiduciary Liability    Starr Indemnity & Liability Company    09/30/2012
Fidelity Bond    Starr Indemnity & Liability Company    09/30/2012
Primary Directors & Officers    Starr Indemnity & Liability Company    09/30/2012
ERISA Bond    Travelers Casualty and Surety Company of America    11/16/2014
Pollution Liability Coverage    Chartis Specialty Insurance    02/01/2014

 

Form 7