Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ENERGY CONVERSION DEVICES INC | d377642d8k.htm |
| EX-99.2 - EX-99.2 - ENERGY CONVERSION DEVICES INC | d377642dex992.htm |
| EX-99.3 - EX-99.3 - ENERGY CONVERSION DEVICES INC | d377642dex993.htm |
| EX-99.1 - EX-99.1 - ENERGY CONVERSION DEVICES INC | d377642dex991.htm |
Exhibit 99.4
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: May 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: |
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Operating Statement | (Form 2) | ||
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Balance Sheet | (Form 3) | ||
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Summary of Operations | (Form 4) | ||
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Monthly Cash Statement | (Form 5) | ||
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Statement of Compensation | (Form 6) | ||
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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: June 20, 2012 | United Solar Ovonic LLC | |||||
| Debtor in Possession | ||||||
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| Title: | William C. Andrews | |||||
| Chief Financial Officer Phone: 248-370-5315 | ||||||
Form 1
OPERATING STATEMENT (P&L)(1)
Period Ending: May 31, 2012
Case No: 12-43167
| Current Month | Total Since Filing | |||||||
| Total Revenue |
$ | 2,423,082 | $ | 11,000,867 | ||||
| Cost of Sales(2) |
5,899,359 | 20,556,380 | ||||||
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| GROSS PROFIT |
(3,476,277 | ) | (9,555,513 | ) | ||||
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| EXPENSES: |
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| Officer Compensation |
25,138 | 91,805 | ||||||
| Salary/Wages Expenses |
459,546 | 2,389,156 | ||||||
| Employee Benefits & Pensions |
216,797 | 884,721 | ||||||
| Payroll Taxes |
125,210 | 359,789 | ||||||
| Other Taxes |
22,105 | 50,532 | ||||||
| Rent and Lease Expense |
124,275 | 626,929 | ||||||
| Interest Expense(3) |
2,171,078 | 7,648,915 | ||||||
| Property Insurance |
967 | 3,651 | ||||||
| Utilities |
56,676 | 128,573 | ||||||
| Depreciation |
22,230 | 79,780 | ||||||
| Travel and Entertainment |
15,432 | 78,480 | ||||||
| Repairs and Maintenance |
17,724 | 34,019 | ||||||
| Other – Miscellaneous |
209,664 | 1,519,032 | ||||||
| Other – (Gain) Loss on Asset Disposal(5) |
— | (7,049,242 | ) | |||||
| Other Specify – European Costs |
250,687 | 877,562 | ||||||
| Other Specify – Restructuring(6) |
— | 2,276,805 | ||||||
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| TOTAL EXPENSES: |
3,717,529 | 10,000,508 | ||||||
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| OPERATING PROFIT |
(7,193,806 | ) | (19,556,022 | ) | ||||
| Add: Non-Operating Income |
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| Total Interest Income |
— | — | ||||||
| Other (Income) / Expense |
(130,149 | ) | 231,648 | |||||
| Less: Non-Operating Expenses |
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| Professional Fees(4) |
839,770 | 3,141,770 | ||||||
| Other – Income Taxes |
(8,303 | ) | (224,509 | ) | ||||
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| NET INCOME/(LOSS) |
$ | (7,895,124 | ) | $ | (22,704,931 | ) | ||
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| (1) | The operating statement and balance sheet were prepared using accrual accounting. |
| (2) | Product sold during this period had an inventory value of $2,837,522. The balance of cost of sales is unabsorbed variance due to the production shutdown. |
| (3) | The effective annual interest rate for May 31, 2012 was 10.2%. |
| (4) | Professional fees include estimates and actuals. |
| (5) | Primarily included gain on rejection of lease. |
| (6) | Severance costs for terminated employees. |
Form 2
BALANCE SHEET
Period Ending: May 31, 2012
Case No: 12-43167
| Current Month | Prior Month | At Filing | ||||||||||
| ASSETS: |
||||||||||||
| Cash and Cash Equivalents |
$ | 10,967,415 | $ | 11,721,600 | $ | 4,378,158 | ||||||
| Investments |
— | — | — | |||||||||
| Inventories, Net |
30,679,473 | 33,539,728 | 41,727,690 | |||||||||
| Accounts Receivable – Intercompany – USO CDN |
1,540,794 | 1,648,063 | 1,788,754 | |||||||||
| Accounts Receivable Intercompany SIT |
23,512,121 | 23,507,313 | 23,497,597 | |||||||||
| Accounts Receivable Trade – Net |
4,761,473 | 6,388,046 | 10,597,737 | |||||||||
| Land and Buildings |
17,517,111 | 17,517,111 | 29,010,567 | |||||||||
| Furniture, Fixtures & Equipment |
36,436,143 | 36,351,487 | 39,529,693 | |||||||||
| Accumulated Depreciation |
(7,625,765 | ) | (7,285,109 | ) | (12,471,130 | ) | ||||||
| Restricted Cash |
3,580,101 | 4,374,728 | 5,950,000 | |||||||||
| Prepaid |
629,263 | 794,253 | 664,094 | |||||||||
| Investment in Subsidiaries |
3,079,555 | 3,242,929 | 3,064,408 | |||||||||
| Other Assets |
2,517,021 | 2,517,019 | 2,053,060 | |||||||||
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| TOTAL ASSETS |
$ | 127,594,703 | $ | 134,317,168 | $ | 149,790,628 | ||||||
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| LIABILITIES: |
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| Post-petition Liabilities: |
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| Accounts Payable Trade – Net |
$ | 658,382 | $ | 273,925 | $ | — | ||||||
| Accounts Payable Intercompany ECD |
50,770 | 85,302 | — | |||||||||
| Accounts Payable Intercompany USO EU |
273,270 | 186,552 | — | |||||||||
| Accounts Payable Intercompany USO Mexico |
1,393,598 | 1,112,646 | — | |||||||||
| Warranty |
118,089 | 118,089 | — | |||||||||
| Other Current Liabilities |
597,026 | 2,069,228 | — | |||||||||
| Accrued Salaries and Wages |
84,237 | 354,188 | — | |||||||||
| Accrued Taxes |
426,335 | 285,739 | — | |||||||||
| Accrued Other |
2,288,932 | 2,325,972 | — | |||||||||
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| TOTAL Post-petition Liabilities |
5,890,638 | 6,811,642 | — | |||||||||
| Secured Liabilities: |
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| Secured Loan – ECD |
5,000,000 | 5,000,000 | 5,000,000 | |||||||||
| Pre-petition Liabilities: |
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| Accounts Payable Trade – Net |
7,273,287 | 7,273,287 | 7,273,287 | |||||||||
| Accounts Payable Intercompany ECD |
799,767,567 | 797,596,837 | 792,119,291 | |||||||||
| Accounts Payable Intercompany SIT |
600,241 | 600,241 | 600,241 | |||||||||
| Accounts Payable Intercompany Mexico |
1,704,449 | 1,704,449 | — | |||||||||
| Lease Payable |
4,849,388 | 4,926,455 | 19,627,288 | |||||||||
| Warranty |
10,176,836 | 10,176,836 | 10,176,836 | |||||||||
| 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 |
4,331,705 | 4,331,705 | 4,331,705 | |||||||||
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| TOTAL Pre-petition Liabilities |
830,654,328 | 828,560,664 | 836,079,503 | |||||||||
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| TOTAL LIABILITIES |
841,544,966 | 840,372,306 | 841,079,503 | |||||||||
| EQUITY: |
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| 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 |
(728,893,951 | ) | (728,893,951 | ) | (728,937,495 | ) | ||||||
| Retained Earnings-Post Petition |
(22,704,931 | ) | (14,809,807 | ) | — | |||||||
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| TOTAL EQUITY |
(713,950,262 | ) | (706,055,139 | ) | (691,288,875 | ) | ||||||
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| TOTAL LIABILITIES AND EQUITY |
$ | 127,594,703 | $ | 134,317,168 | $ | 149,790,628 | ||||||
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Form 3
SUMMARY OF OPERATIONS
Period Ended: May 31, 2012
Case No: 12-43167
Schedule of Post-petition Taxes Payable
| Beginning Balance |
Accrued/ Withheld |
Payments/ Deposits |
Ending Balance | |||||||||||||
| Income Taxes Withheld |
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| Federal |
— | $ | 461,947.44 | $ | 461,947.44 | — | ||||||||||
| State |
— | 128,731.19 | 128,731.19 | — | ||||||||||||
| Local |
— | — | — | — | ||||||||||||
| FICA Withheld |
— | 175,431.82 | 175,431.82 | — | ||||||||||||
| Employers FICA |
— | 234,625.50 | 234,625.50 | — | ||||||||||||
| Unemployment Tax |
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| Federal |
— | 3,941.61 | 3,941.61 | — | ||||||||||||
| State |
— | 86,898.50 | 86,898.50 | — | ||||||||||||
| Sales, Use & Excise Taxes |
$ | 93,569.00 | 42,652.00 | — | $ | 136,221.00 | ||||||||||
| Property Taxes |
192,170.00 | 97,974.00 | — | 290,144.00 | ||||||||||||
| Workers’ Compensation(1) |
— | — | — | — | ||||||||||||
| Other |
— | — | — | — | ||||||||||||
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| TOTALS |
$ | 285,739.00 | $ | 1,232,202.06 | $ | 1,091,576.06 | $ | 426,365.00 | ||||||||
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| (1) | Fully insured. |
AGING OF ACCOUNTS RECEIVABLE
AND POST-PETITION ACCOUNTS PAYABLE
| Age in Days | 0-30 | 31-60 | Over 60 | |||||||||
| Post Petition |
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| Accounts Payable |
$ | 636,141.56 | $ | 21,560.47 | $ | 679.72 | ||||||
| Accounts Receivable |
$ | 4,382,814.71 | $ | — | $ | 378,657.66 | ||||||
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: May 31, 2012
| Cash Activity Analysis (Cash Basis Only): | Case No: 12-43167 |
| General Account |
L/C Collateral Account |
Canadian Payroll Account(1) |
Petty Cash |
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| A. |
Beginning Balance |
$ | 12,001,360.76 | $ | 4,374,728.04 | $ | 3,821.37 | $ | 803.29 | |||||||||
| B. |
Receipts |
4,127,749.07 | — | 75,000.00 | 0 .88 | |||||||||||||
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| (Attach separate schedule) |
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| C. |
Balance Available |
16,129,109.83 | 4,374,728.04 | 78,821.37 | 804.17 | |||||||||||||
| (A+B) |
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| D. |
Less Disbursements |
5,132,364.30 | 794,627.20 | 15,704.89 | — | |||||||||||||
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| (Attach separate schedule) |
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| E. |
ENDING BALANCE |
$ | 10,996,745.53 | $ | 3,580,100.84 | $ | 63,116.48 | $ | 804.17 | |||||||||
| (C-D) |
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| (1) | In Canadian Dollars |
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: $5,942,696.39
(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 |
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L/C Collateral Account:
| 1. Depository Name & Location |
JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan | |||||
| 2. Account Number |
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Canadian Payroll Account:
| 1. Depository Name & Location |
JP Morgan Chase Bank, N.A. Canada; Toronto, Ontario, Canada | |||||
| 2. Account Number |
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Other monies on hand (specify type and location) i.e., CD’s, bonds, etc.):
None
| Date: June 20, 2012 | ||||
| United Solar Ovonic LLC | ||||
| Debtor in Possession | ||||
Form 5
MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS
Period Ending: May 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 (1): |
Weekly | Or | Monthly | |||||||||
| $ | 18,461.55 | |||||||||||
| 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 | |||||||||||
| Vacation Payout |
6,676.92 | |||||||||||
| Personal Car Mileage |
158.73 | |||||||||||
| Entertainment |
— | |||||||||||
| Travel |
— | |||||||||||
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| Total Benefits |
$ | 7,841.53 | ||||||||||
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| Current Other Payments Paid: |
Weekly | Or | Monthly | |||||||||
| Rent Paid |
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| Loans |
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| Other (Describe) |
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| Other (Describe) |
— | |||||||||||
| Other (Describe) |
— | |||||||||||
| Total Other Payments |
— | |||||||||||
| Weekly | Or | Monthly | ||||||||||
| CURRENT TOTAL OF ALL PAYMENTS: |
$ | 26,303.08 | ||||||||||
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| (1) | Mr. Conroy’s last day of employment with the company was 5/11/12. |
| Dated: June 20, 2012 | Joseph P. Conroy |
Form 6
SCHEDULE OF IN-FORCE INSURANCE
Period Ending: May 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