In re  

: :

Chapter 11

RAIT FUNDING, LLC,

:

Case No. 19-11915 (BLS)

a Delaware limited liability company, et. al. ⁽¹⁾

: :

                     Debtors.

:

Jointly Administered

DEBTORS' ADDRESS:

Two Logan Square

100 N. 18th Street, 23rd Floor

Philadelphia, Pennsylvania 19103

(Attn: John J. Reyle)

DEBTORS' ATTORNEYS:

REPORT PREPARER:

Patrick A. Jackson (Del. Bar No. 4976)

Joseph N. Argentina, Jr. (Del. Bar No. 5453)

222 Delaware Avenue, Suite 1410

Wilmington, DE 19801

Tel: (302) 467-4200

Fax: (302) 467-4201

Patrick.Jackson@dbr.com

Joseph.Argentina@dbr.com

RAIT FUNDING, LLC

Michael P. Pompeo

Brian P. Morgan

1177 Avenue of the Americas, 41st Floor

New York, NY 10036-2714

Tel: (212) 248-3140

Fax: (212) 248-3141

Michael.Pompeo@dbr.com

Brian.Morgan@dbr.com

RAIT FUNDING LLC

Case No. 19-11915 (BLS)

Debtor

Reporting Period: 11/01/19 - 11/30/19

Required Documents

Form No.

Document Attached

Explanation Attached

Schedule of Cash Receipts and Disbursements

MOR-1a

x

Bank Account Reconciliation/Information

MOR-1b

N/A

x

Schedule of Professional Fees Paid

MOR-1c

x

Copies of Bank Statements

N/A

x

Cash Disbursements Journals

N/A

x

Statement of Operations

MOR-2

x

Balance Sheet

MOR-3

x

Status of Post-Petition Taxes

MOR-4a

N/A

x

Copies of IRS Form 6123

N/A

x

Copies of Tax Returns Filed During Reporting Period

N/A

x

Summary of Unpaid Post-Petition Debts

MOR-4b

x

Listing of Aged Accounts Payable

MOR-4b

x

Accounts  Receivable Reconciliation and Aging

MOR-5a

x

Debtor Questionnaire

MOR-5b

x

Debtor

Case No.

RAIT Funding, LLC

19-11915 (BLS)

RAIT Financial Trust

19-11916 (BLS)

RAIT General, Inc.

19-11917 (BLS)

RAIT Limited, Inc.

19-11918 (BLS)

Taberna Realty Finance Trust

19-11919 (BLS)

RAIT JV TRS, LLC

19-11920 (BLS)

RAIT JV TRS SUB, LLC

19-11921 (BLS)

1.

Basis for Presentation.  This MOR has been prepared solely for the purpose of complying with the monthly reporting requirements in these chapter 11 cases and is in a format the Debtors believe is acceptable to the United States Trustee.  The financial statements and supplemental information contained herein are preliminary, unaudited and may not comply in all material respects with accounting principles generally accepted in the United States ("GAAP").  In addition, certain of the financial statements and supplemental information contained herein represent consolidated information (e.g., RAIT Financial Trust and its consolidated subsidiaries). The unaudited consolidated financial statements have been derived from the books and records of the Debtors.  This information, however, has not been subject to certain procedures that would typically be applied to financial information in accordance with GAAP, and upon application of such procedures the financial information could be subject to material change.  The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors.

2.

Accuracy. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non‐bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder.  Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws or for any evaluations of the Debtors based on this financial information or any other information.

3.

Liabilities Subject to Compromise. Liabilities subject to compromise have been reported at the amounts recorded on the Debtors' books and records as of the date of the report. The amounts classified as liabilities subject to compromise in the financial statements included herein are preliminary and may be subject to future adjustments depending on Bankruptcy Court actions, developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, rejection of executory contracts, reconciliation of claims, and other events.

4.

Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors' rights or an admission with respect to their chapter 11 cases.

5.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors' books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

6.

Consolidated Entity Accounts Payable and Disbursement Systems. Cash is received and disbursed by the Debtors as described in the Motion of Debtors for

7.

Debtor & Non-Debtor Activities. To the best of the Debtors’ ability, the information shown in this MOR is for the 7 Debtor entities. In that regard, MOR-2 (Statement of Operations) and MOR-3 (Balance Sheet) include individual data for Debtors, with aggregated activity for all non-Debtors, and aggregated intercompany eliminations accross Debtors and non-Debtors. Historically, financial statements have only been produced by the Debtors on a consolidated basis (e.g., RAIT Financial Trust and its consolidated subsidiaries), and accounting processes and general ledger activity have occurred to support preparation of these consolidated financial statements, and not stand-alone financial statements for each Debtor. Accordingly, each Debtor’s individual information within MOR-2 and MOR-3 may not be in accordance with GAAP. As such. relying upon an unconsolidated view of each Debtor may be misleading and is being shown only for the purposes of complying with MOR reporting requirements.

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

Debtor

Reporting Period:

11/01/19 - 11/30/19

MOR-1a

Schedule of the Debtors' Cash Receipts and Disbursements

For the Period From November 1, 2019 to November 30, 2019

($ in thousands)

Bank Balance 10/31/2019

$

40,249

Receipts:

Cash Receipts

985

Total Receipts

$

985

Disbursements:

  Operating Disbursements

Payroll and Benefits

$

(325

)

Professional Fees - Recurring

-

Litigation Related Costs

-

Corporate Overhead

(241

)

REO Maintenance

-

Other

-

Total Operating Disbursements

$

(566

)

  Non-Operating Cash Items

Professional Fees - Restructuring

$

(506

)

Principal & Interest

-

Transaction Related Expenses

(35

)

Sale Proceeds

-

Total Non-Operating Cash Flow

$

(541

)

Net Cash Flow

$

(121

)

Ending Bank Balance 11/30/2019

$

40,128

Outstanding Checks

(26

)

Ending Book Balance 11/30/2019

$

40,102

RAIT FUNDING LLC

Case No. 19-11915 (BLS)

Debtor

Reporting Period: 11/01/19 - 11/30/19

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

Debtor

Reporting Period:

11/01/19 - 11/30/19

MOR-1b (cont.)

Book Balances

As of November 30, 2019

($ in thousands)

Entity

Bank

Account No. ⁽¹⁾

Description

Ending Book Balance

RAIT Financial Trust

Citibank NA

*2169

Operating

$

3,919

RAIT Financial Trust

Citibank NA

*1136

MMA

6,534

RAIT Financial Trust

Citibank NA

*0232

MMA

20,720

Taberna Realty Finance Trust

Citibank NA

*0397

Operating

8,878

RAIT Funding LLC

Citibank NA

*5657

Operating

43

RAIT JV TRS LLC

Citibank NA

*9356

Operating

8

RAIT Financial Trust

Wilmington Trust

*4000

Escrow

-

Taberna Realty Finance Trust

Wilmington Trust

*9000

Escrow

-

Total Debtors Book Cash

$

40,102

(1)

Represents last four digits of account number

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

Debtor

Reporting Period:

11/01/19 - 11/30/19

MOR-1b (cont.)

Estimated US Trustee Fees

As of November 30, 2019

($ in actuals)

Entity

Case No.

Oct. '19

Disbursements

Nov. '19

Disbursements

U.S. Trustee Fee

Q4-2019 ⁽¹⁾

RAIT Financial Trust

19-11916 (BLS)

688,659

1,106,290

TBD

RAIT Funding, LLC

19-11915 (BLS)

-

-

TBD

RAIT JV TRS LLC

19-11920 (BLS)

-

-

TBD

RAIT General, Inc.

19-11917 (BLS)

-

-

TBD

RAIT Limited, Inc.

19-11918 (BLS)

-

-

TBD

RAIT JV TRS SUB, LLC

19-11921 (BLS)

-

-

TBD

Taberna Realty Finance Trust

19-11919 (BLS)

2,604

-

TBD

Estimated US Trustee Fees

$

691,262

$

1,106,290

$

-

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

Debtor

Reporting Period:

11/01/19 - 11/30/19

MOR-1c

Schedule of Professional Fees Paid

For the Period From November 1, 2019 to November 30, 2019

($ in thousands)

Schedule of Professional Fees Paid

Check/Wire

Current Period Payments

Amount Paid Since Filing

Professional

Period Covered

Payor

Number

Date

Fees

Expenses

Total

Fees

Expenses

Total

EPIQ

Oct. '19

RAIT Financial Trust

Wire

11/22/2019

$

56

$

-

$

56

$

124

$

-

$

124

UBS

Sep. - Nov. '19

RAIT Financial Trust

Wire

11/22/2019

450

-

450

450

-

450

U.S. Trustee Fee

Sep. '19

RAIT Financial Trust

-

-

-

-

-

7

-

7

Total

$

506

$

-

$

506

$

581

$

-

$

581

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

Debtor

Reporting Period:

11/01/19 - 11/30/19

MOR-2

Statement of Operations

For the Period From November 1, 2019 to November 30, 2019

($ in thousands)

Entity

RAIT FUNDING, LLC

RAIT FINANCIAL TRUST

RAIT GENERAL, INC.

RAIT LIMITED, INC.

TABERNA REALTY FINANCE TRUST

RAIT JV TRS, LLC

RAIT JV TRS SUB, LLC

Non-Debtors

Eliminations

Total

Case No.

19-11915

19-11916

19-11917

19-11918

19-11919

19-11920

19-11921

Revenue:

Investment interest income

$

-

$

30

$

-

$

-

$

75

$

-

$

-

$

2,647

$

(1,556

)

$

1,195

Investment interest expense

-

-

-

-

-

-

-

(585

)

-

(585

)

Net interest margin

$

-

$

30

$

-

$

-

$

75

$

-

$

-

$

2,062

$

(1,556

)

$

610

Property income

-

-

-

-

-

-

-

1,164

(31

)

1,133

Fee and other income

-

-

-

-

-

-

-

25

(17

)

8

Total revenue

$

-

$

30

$

-

$

-

$

75

$

-

$

-

$

3,251

$

(1,604

)

$

1,751

Expenses:

Interest expense

-

-

-

-

-

-

-

(1,824

)

1,556

(268

)

Real estate operating expense

-

-

-

-

-

-

-

(565

)

31

(533

)

Property management expenses

-

-

-

-

-

-

-

(39

)

-

(39

)

General and administrative expenses

(0

)

(849

)

-

-

(6

)

-

-

(304

)

17

(1,141

)

Provision for losses

-

-

-

-

-

-

-

180

-

180

Depreciation and amortization expense

-

-

-

-

-

-

-

(395

)

-

(395

)

Total expenses

$

(0

)

$

(849

)

$

-

$

-

$

(6

)

$

-

$

-

$

(2,946

)

$

1,604

$

(2,196

)

Net Operating (Loss) Income

$

(0

)

$

(819

)

$

-

$

-

$

69

$

-

$

-

$

305

$

-

$

(445

)

Interest and other income (expense), net

-

0

-

-

-

-

-

26

-

26

(Gains) / Losses on assets

(0

)

(608

)

-

-

69

-

-

120

-

(419

)

Gains (losses) on extinguishments of debt

-

-

-

-

-

-

-

-

-

-

Reorganization items, net

-

(1,449

)

-

-

-

-

-

-

-

(1,449

)

Income (loss) before taxes

$

(0

)

$

(2,057

)

$

-

$

-

$

69

$

-

$

-

$

120

$

-

$

(1,867

)

Income tax benefit (provision)

-

-

-

-

-

-

-

-

-

-

Net Income (Loss)

$

(0

)

$

(2,057

)

$

-

$

-

$

69

$

-

$

-

$

120

$

-

$

(1,867

)

RAIT FUNDING LLC

Case No.

19-11915 (BLS)

Debtor

Reporting Period:

11/01/19 - 11/30/19

MOR-3

Balance Sheet

As of November 30, 2019

($ in thousands)

Entity

RAIT FUNDING, LLC

RAIT FINANCIAL TRUST

RAIT GENERAL, INC.

RAIT LIMITED, INC.

TABERNA REALTY FINANCE TRUST

RAIT JV TRS, LLC

RAIT JV TRS SUB, LLC

Non-Debtors

Eliminations

Total

Case No.

19-11915

19-11916

19-11917

19-11918

19-11919

19-11920

19-11921

Assets:

Investments in mortgage loans, net

$

-

$

-

$

-

$

-

$

5,099

$

-

$

-

$

361,041

$

(106,668

)

$

259,472

Investments in real estate, net of accumulated depreciation

-

-

-

-

-

-

-

112,253

-

112,253

Cash and cash equivalents

43

31,173

-

-

8,878

8

-

4,421

-

44,523

Restricted cash

-

-

-

-

-

-

-

41,241

-

41,241

Accrued interest receivable

-

59

-

-

160

-

-

23,099

(8,879

)

14,439

Other assets

100

950

-

-

(21

)

-

539

462,517

(455,446

)

8,640

Intangible assets, net of accumulated amortization

-

-

-

-

-

-

-

1,083

-

1,083

Total assets

$

143

$

32,182

$

-

$

-

$

14,116

$

8

$

539

$

1,005,654

$

(570,992

)

$

481,650

Liabilities & Equity:

Indebtedness, net of unamortized discounts, and def. fin. costs

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

541,334

$

(292,004

)

$

249,330

Accrued interest payable

-

-

-

-

-

-

-

9,333

(8,879

)

454

Accrued expenses

-

5,310

-

-

-

-

(0

)

1,320

-

6,630

Accounts payable

-

1

-

-

-

-

-

47

-

48

Deferred taxes and other liabilities

-

-

-

-

-

-

-

17,979

(800

)

17,179

Total liabilities not subject to compromise

$

-

$

5,311

$

-

$

-

$

-

$

-

$

(0

)

$

570,012

$

(301,682

)

$

273,641

Liabilities Subject to Compromise

23,750

123,453

-

-

18,671

-

1

-

-

165,875

Total liabilities

$

23,750

$

128,764

$

-

$

-

$

18,671

$

-

$

1

$

570,012

$

(301,682

)

$

439,516

Shares outstanding

-

2,874

-

-

-

-

-

-

-

2,874

Additional paid in capital

-

2,099,281

-

-

-

-

-

494,336

(491,113

)

2,102,504

Accumulated other comprehensive income (loss)

-

-

-

-

12,673

-

-

-

-

12,673

Retained earnings (deficit)

(54,520

)

(956,475

)

-

-

(656,899

)

-

(5,412

)

(254,455

)

(148,155

)

(2,075,917

)

Non-controlling interest

-

-

-

-

-

-

-

876

(876

)

-

Intercompany contributions/distributions

30,913

(1,242,261

)

-

-

639,672

8

5,950

194,885

370,834

0

Total equity

$

(23,607

)

$

(96,582

)

$

-

$

-

$

(4,555

)

$

8

$

538

$

435,641

$

(269,309

)

$

42,134

Total liabilities & equity

$

143

$

32,182

$

-

$

-

$

14,116

$

8

$

539

$

1,005,654

$

(570,992

)

$

481,650