Hemming Morse, Inc.
11160 Spear Street Suile 1900
Sail Francisco, CA 94105
II
"'one 1415) B36-4000 .tile 14151 m-2062
[email protected]
T
i
Celtificd Public AccoulTtants VtigBlion end forensic CDnsultants
Frederick S_ Wyle, Esq. Trustee in Bankruptcy
We have compiled the following financial statements, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants, for the following Companies substantively consolidated in bankruptcy including: a) Hamilton Taft & Company (a California corporation in bankruptcy); b) Knightsbridge Cornpanies, Inc. (aTexas corporation in bankruptcy); c) Rernington Companies, Inc. (a Texas corporation in bankruptcy); and d) Dresdner Enterprises, Inc. (a Texas corporation in bankruptcy): Consolidated Statement of Cash Receipts and Disbursements for the Cumulative Post-Petition Periods ended September 15, 1999; Consolidated Schedule of Cash Balances and Projected Disbursements as of September 15, 1999 These financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. The accompanying financial statements include both the consolidated Post-Petition periods and the periods of Trustee adn-linistration for each debtor. For HarniHon Taft, both of these periods begin on March 20, 1991 (even though the TJJJstee was not appointed until March 26, 1991). The term 'Texas Debtors" is used in these financial statements to refer to Knightsbridge Companies, Inc., Remington Companies, Inc. and Dresdner Enterprises, Inc. For the Texas Debtors, the Post-Petition period begins on April 19, 1991 for Knightsbridge and on April 29, 1991 for Remington and Dresdner Enterprises. For the Texas Debtors, the period of Trustee administration begins on July 22, 1991, which is when Frederick S. Wyle, Esq. was appointed as interim trustee. The Trustee's appointment was made permanent on November 4, 1991 and also on that date the Bankruptcy Court ordered the SUbstantive consolidation of Hamilton Taft and the Texas Debtors. A Plan Of Reorganization for the bankruptcy estate has been confirmed by Court Order entered on October 25, 1994.
000133 II San Francisco
1 Los Angeles
1 Frederick S. Wyle Trustee in Bankruptcy Page Two
A compilation is limited to presenting, in the form of financial statements, information that is available to the Trustee. We have not audited or reviewed the accompanying finandal statements and supplementary information referred to above and, accordingly, do not express an opinion or any other form of assurance on them. As required by generally accepted accounting principles, a complete finandal statement includes a statement of assets, liabilities and equity, a statement of cash flows and substantive disclosures to further describe amounts included on the related financial statements. These disclosures have not been induded with the accompanying statements. If these disclosures and a statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Company's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
1~~} 1116Y'-U, September 2t, 1999 San Francisco, Califomia
000134
Consolidated Hamilton Taft & Company and Texas Debtors (A Group of Affiliated Companies In Bankruptcy) Statement of Cash Receipts and Disbursements Cumulative Post-Petition Periods Ended September 15, 1999 (See Accompanying Accountant's Compilation Report)
Exhibit Ref.
Hamilton Taft To 10/31/91
Texas Debtors
Canso lida ted
Consolidated
To 10/31/91
Since 11/01/91
Total
$47,500,000
$47,500,000
17,500,000
Receipts: Fidelity Bond gross recovery Peat Marwick gross recovery Other litigation and claims recoveries Interest received Other receipts Total Receipts
$25,000
25,734,158
17,500,000 25,759,158
$169,054
284
596,499 765,553
1,076,010 1.101,294
2,348,266 8,768,749 101,851,173
10,441,258 103,718,020
1,040,032
587.163
1-1 1-2
Disbursements: Bankruptcy administrative costs Operating costs 1-3 Payment to Underwriters of Lloyds Professional Fees: Trustee and Trustee's Professionals Trustee's Attorneys Trustee's Attorneys: Fidelity Bond contingency fee Trustee's Attorneys: Peat Marwick contingency fee Trustee's Accountants Trustee's Appraisers and Consultants Trustee's fees Professional Fees: Creditor's Committee Professional Fees: Debtor-in-Possession Professional Fees: Petitioners Settlement: Bank One furniture lease U.S. Trustee fees Subtotal
29,118 3,205,726 4,915,879
2.517,604
29,118"\ 4.832,921 4,915,879
>.-
~
455,118
173,696 20,811 104,088 14,536
9,070
13,516 188,945 4,500 2,001,726
2,100 611,849
3,944,357 15,746,517 5,752,815 674,681 28,061 779,310 492,465 67,753 635,847 60,050 36,332,579
4,399,47515,746,517 5,752,815 848,377 57,942 883,398 507,001 81,269 635,847 188,945
\
~ -,-
!,
,
...
:
69,323.644
Class 1 (100% Distribution) Class 3 (100% Distribution), net of preference reserves
.
..
t
66,650
i
Employer payroll taxes on employee distributions Stale dated, undeliverable distribution checks Subtotal
Excess (Disbursements) Receipts
Beginning Cash Balances
1-2
Transfer of Texas Debtors' cash balances 1ding Cash Balances
38,391 223,185
13.014
13,014
(14,247)
(14,247)
69.583,987
69.583,987
2.001,726
611,849
105,916.566
108,530,14-1 ,
(1,236,173)
489,445
(4.065.393)
(4,812.121)
5,858,239 503,577
1-4
69,328,644
223,185
$5,125,643
EXHIBIT 1
74.133
0
$60,000
5.932.372
0
(503,577) ($4.065,393)
~
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t,~
~ ~.
38,946, '154
38,391
~
I.. ,J.
Bankruptcy Djstributions Class 4 Creditors (Cumulative 67.25%)
f
~
"/
Total Disbursements
~
$1.120,251
000128
,- t
Consolidated Hamilton Taft & Company and Texas Debtors (A Group of Affiliated Companies In Bankruptcy) Statement of Cash Receipts and Disbursements Cumulative Post-Petition Periods Ended September 15,1999 (See Accompanying Accountant's Compilation Report)
Cumulative for Post-Petition Periods Hamilton Taft
Texas Debtors
Consolidated
Consolidated
To 10/31/91
To 10/31/91
Since 11/01/91
Total
Detail of Other Litigation and Claims Recoveries: $25,000
Recovered from Connie C. Armstrong, Jr. AI-Ibrahim settlement CIGNA settlement Dresdner Petroleum, Inc. Bankruptcy distribution
$345,106
$370,106
475,000
475,000
1,800,000
1,800,000
134,429
134,429
Gulftex settlement payment received
38,888
38,888
Godwin, Carlton settlement
30,000
30,000
Grambling settlement Hadid settlement Bartl etuCoste II olLitch fi e Id settlem en ts
51,500
51,500
550.000 59,500
550,000
5,000
59,500
Paille settlement Weir Brothers bankruptcy distribution
112,037
5.000 112,037
David McCall settlement Meadow Owens settlement
325,000 400,000
325,000 400,000
?arker Automotive settlement Preference settlement ~ Rosenberg settlement S & S Credit Corporation settlement
465,004
465,004
19,450,527 400,000
19,450,527
160,091 932,076
Sandia Corporation recovery $0
Total Litigation and Claim Recoveries
$25,000
$25,734,158
400,000 160,091 932,076 $25,759,158
EXHIBIT 1-1
000129
Consolidated Hamilton Taft & Company and Texas Debtors (A Group of Affiliated Companies In Bankruptcy) Statement of Cash Receipts and Disbursements Cumulative Post-Petition Periods Ended September 15, 1999 (See Accompanying Accountant's Compilation Report)
Cumulative for Post-Petition Periods Hamilton Taft
Texas Debtors
Consolidated
Consolidated
To 10/31191
To 10/31/91
Since 11/01/91
Total
Detail of Other Receipts: Gross sale - real estate projects
$711,250
Gross sale - ranch $203,117
Gross sale -livestock (HTC Ranch)
$3,170,250
$3,881,500
4,300,000
4,300,000
158,300
361,417
Gross sale - ranch equipment & vehicles
116,645
116,645
Gross sale - rodeo partnership interest
250,000
250,000
Gross sale - stadium box
210,000
210,000
Gross sale - vehicles
137,575
Gross sale - other assets
69,427
167,412
Expense reimbursements $32,109
Monthly service fees
35,900
173,475
11,007
247,846
42,990
42,990
3,735
35,844
107,343 42,080 55,008
24,974 97,455 107,343 42,080 55,008
24,974 97,455
Net customer funds (Tax Agency funds) Returned customer checks (Pre-Petition) Reimbursement-Ranch insurance claim Receivables recovered through distribution offset Recovery of Unclaimed Property
143,554
Recovery of costs allocated to other affiliates
143,554
Other receipts (including insurance and other refunds, 31,842
53,793
265,491
351,126
$596,499
$1,076,010
$B,768,749
$10,441,258
Balance as of bankruptcy petition Ranch cash balance as of August 1, 1991
$5,856,509
$74,133
Total Beginning Cash Balances
$5,858,239
rental income, forfeited purchase deposits) Total Other Receipts
Detail of Beginning Cash Balances $5,930,642 1,730
1,730
EXHIBIT 1-2
$74,133
$0
$5,932,372
000130
Consolidated Hamilton Taft & Company and Texas Debtors (A Group of Affiliated Companies In Bankruptcy) Statement of Cash Receipts and Disbursements Cumulative Post-Petition Periods Ended September 15,1999 (See Accompanying Accountant's Compilation Report)
Cumulative for Post-Petition Periods Hamilton Taft
Texas Debtors
Consolidated
Consolidated
To 10/31191
To 10/31/91
Since 11101191
Total
Detail of Operating Costs Pa.id: Employee costs Employee costs - Ranch (Since 8/01/91) Subtotal: Employee costs
$445,270
$268,805
37.136 482,406
268,805
Cost of sale -livestock
10,9.t.l3
Cost of sale - other assets Cost of sale - ranch Cost of sale - real estate projects Cost of sale - Rodeo Equipment leases Insurance
50,046
litigation costs
0 11,873
Office supplies & expenses Other costs of operations Outside services Penalty for early withdrawal Portion of distribution returned Prepaid expenses & deposits Property and equipment
301,765
4,947
62,522
2,131
2,131
233,117
233,117
13,372
38,820
17,453
B.954
26,407
600
46,925
12,195
47,525 18,596
12,647
242,437
255,084
$587,163
$3,205,726
$4,832,921
234
446,338
30,699 36,397 5,814
23.179
5,490
4,800 22,470 37,500 4,340 3,161 15,030 288,408
Real Estate holding costs
51,589
Relocation costs
15,905
Rent
72,658
35.327
Return of reimbursed expenses Taxes: Property & business
15,573
Travel & auto expenses Trustee's bond
9.875
6,401
$1,040,032
567
264,888
193,693
1.814 12,961
50,046 260,748 460,640
14,926 272,434 446,571 65,752 233.293 28,284 37,500 4,340 71.173 16,844 12,961 304,522 51,589 15,905 372,873
behalf of DPI
16,114
Total operating costs paid
233,453 1,479,330
728,119
557
9,979 78,741
Ranch operating costs
Trustee's miscellaneous costs Work-in-Process: Real Estate
196,317
10,943
158,875
PUblication costs
Telephone
$1,245.877
260,748
192,096 0 OJ)
$531,802
EXHIBIT 1-3
000131
Consolidated Hamilton Taft & Company and Texas Debtors (A Group of Affiliated Companies In Bankruptcy) Consolidated Schedule of Cash Balances And Projected Disbursements as of September 15, 1999 (See Accompanying Accountant's Compilation Report)
Cash Balances Operating Account Union Bank Account No. 2190000551 Distribution Account: Union Bank Account No. 2190000004
Interest BearinG Accounts: Union Bank Money Market Account No. 1270009308 Union Bank nme Deposit Account No. 2199001302 Cas h Balance - as of Septem ber 15, 1999
$1,114,582 5,669
Closed Closed
$1,120,251
Projected Disbursements Professional Fees: Trustee and Trustee's Professionals Feldman, Waldman & Kline Shaver, Suntag & Feuerstein Garfield & Hecht Subtotal
24,990 6,149 7,090 38,229
Hemming Morse, Inc.
23,415
Frederick S. Wyle Subtotal: Professional Fees
19,988 81,632
U.S. Trustee Fees Advance payment for future Armstrong collection efforts Contingency reserve
4,750 75,000 4,500 165,882
Subtotal: Projected Disbursements
Amount available for distribution to Class 4 Creditors
$954,369
EXHIBIT 1-4 - --
-
000132
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L:\UnHTAFn{DISTCUMjCum
HAMILTON TAFT & COMPANY Former Clients Included in Class 4 Claims Claims Outstanding After Fifth (Final) Distribution
Client 4
Action Instruments Co .• Inc. Advo-System, Inc. Affiliated Computer Services, Inc. Air Cable. Inc. All American Gourmet Company Allen Foam Corporation America West Airlines, Inc. American Microsystems, Inc, American Nukem Corporation Analytikem Argo Partners (Genstar) Argo Partners (Pullman) Associated Coin Amusement Co. Atlas Hotels Inc. Balcor Payroll Company Blue Cross & Blue Shield Of Texas Brinkmann Instruments Brunswick Seat Company BW I LP International, Inc. C & R Clothiers California Pacific Medical Center Cartex Corporation Chase Manhattan Mortgage Corporation Chase Manhattan Mortgage Corporation Claris Corporation Clevite Bridgestone Co. Coast Fedral Bank Coherent, Inc. Commerical Credit Corporation Cavia Partnership Customer Company eyer-I/em C) ::nergy Services
0 0 0
Combined Claims Accepted Combinl;d Allowed Preference Claims Claim Claim
$96.654 1,796.288
$10,243 49,100
24.966 509,441 3,226 834,725 268,238 32,799 31,184 518,023 686,112 10,219 166,607 12,211 1! 145,074 72.034
1
122.980 673,873 59.221
1.097
373.701 324,523 1J 102,264 24.663 850 156 040 164.333 2.734 1
$106.898 1.196.288 4B,100 24.966 509,441 3,226 834}25 268,238 32,799 3'1,184 51B,023 686,112 10 219 289,587 12,211 1,818.947 13'1,255 '1,097 373,701 324,523 1,652,255 24,663 850 353.027 22-1,215 2,734 112.144 335,973 3,454,766 1,792,402 102,935
549,990
196.986 56.882 112,144 335.973 3,454,766
1,792,402 102.935 49,063
49,063
4.000
114,000
Class 4 Cumulative Distributions Through Final
$67,430 1,220,872 8,330 16,969 86,434 2,193 567,333 182,311 22,292 21,195 352,082 466,325 6.945 134,102 8,300 892,597 59,007 746 253,991 220,567 842,483 16,763 577 139,476 121,342 1,858 19,027 57,002 586.149 1,218,231 17,464 33,346 19,342
Remaining Balance Due on Client Claims
$39,467 575,416 40,769 7,998 423,007 1.033 267,393 85,926 10,507 9,989 165,942 219,786 3,273 155,485 3,912 926,349 72,249 351 119,710 103,956 809.772 7,900 272 213,550 99,873 876 93,118 278,971 2,868.617 574.171 85.470 1'" --17
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HAMILTON TAFT & COMPANY Former Clients Included in Class 4 Claims Claims Outstanding After Fifth (Final) Distribution
Q
0 Q Class 4
Remaining
Cumulative
Balance Due
Combined
Distributions
on Client
Claims
Combined Claims Accepted Allowed Client Degussa Corporation Del Manufacturlng Company Delaware Seat Company Delhi Gas Pipeline Corporation Diamond Walnut Growers, Inc. Dole Foods (Castle & Cooke) Donnelley Receivable Inc, Dublin San Ramon Services Dist. Electric Power Research Institute ENSR Corporation Delaware .. Federal Express Corporation First Capital Ufe Insurance Co, First Interstate Bank Glendale Adventist Medical Center Guckenheimer Enterprises, Inc. Guckenheimer Of Texas, Inc. H.D. Hudson Manufacturing Co. HBO & Company Of Georgia Healthquest Ltd, JBB Spirits Inc. .. Jim Beam Brands Co. Kay tea Rose Inc. King Bearing, Inc. Lucasarts Entertainment Co. lucas firm, Lid. Mabon, Nugent & Company McCutchen, Doyle Brown 8. Enersen Metromedia Company Mills College Monroe Systems For Business Ml. Diablo Medical Center, Inc. Natir-"l\ Data Corp. NC' Union Fire Insurance Co.
Preference
774,491
774,4'91.
Through Final 526,394
22,851
22,851
15,531
Claims 248,098 7,320
14,905 47,210
14,905 47,210
10,131 32,087 13,890 2,157,329
15.123 67,978 1,110,583
Claim
Claim
3,142,907
81,866
81.866
125,006
3,267,913
I
4,775
108
108
74
35
45,353
30,825
14,528 230,491
139,054 $306,127 625,710
578,154
45,353 349,901 710,511 39,267,744 139,054 $306,127 1,203,864
523,364
680,500
95,403
92,604
188,007
80.554
9,073
9,073
107,453 2,906
100,147 421,925
230,626
100.147 421.925 230,626
6,166 68,067 286,767
894
894
608
135,158 73,878 287
213,610
116,752
96,858
16,422 237.832
11,162 40,352 150,189
5,261 197,481 79,534
117,734 710,511 30,387,795
157,863
232,167 8,879,948
55,747
16,422
218,066
237,832 11,657
21,432 956,799
331.657
21,432 1,288,456
100,960
100,960 61,317
61,317
83,263 660,778 160,725 84,148 10,145,712
229,723
61.114
83.263 660,778 221,839 84,148 10,145)12
119,410 482,908 22,160,093
227,602 17,107.650
94,510 208,063
98,063
156,748
44,544
32,081
14,567
6,866
706,572 68,619 41.675 14,127 449,107 119,608
581,884 32,341 19,642
57,192
6,695,674
69,136 211.671
102,231 ')C' -""6 3,2
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.,.....j
HAM1LTON TAFT & COMPANY Former Clients Included in Class 4 Claims Claims Outstanding After Fifth (Final) Distribution
0
0 0
Combined Claims Accepted Combined
Allowed
4
Client NEC Electronics, Inc, Neiman~Marcus Group, Inc. Northland Plastics Inc. Norwest Publishing Co. Nukem Acquisition Corporation Nukem Technologies Corp. Oakland Athletics Baseball Company Pay less Shoe Source Polytechnic University R.R. Dannelley & Sons Co. Reckitt & Coleman Inc.
Richmond Wholesale Meal Co. Riverside Seat Company. tnc. Rochester Institute Of Technology Rool·LoweU Manufacturing Co. Ross Stores, Inc. S & S Credit Companies, Inc. SCM Chemicals, Inc. SCM Metal, Inc. • Scot! Paper Co. Signet Armorlite, Inc. Signetics Company Sinai Hospital Of Oetrolt Sinai Management Services Co.
Sitka Corporation Sony Corporation Of America SOS Environmental TechnOlogy Southland Corp. Employees Trust Springfield Sugar & Products Co. Springfield Terminal Rail. Co. Stanford University Hospital Stall" ~ar of California St; \rkansas
a
553,251 7,235 45,237
1,129,769
1,683,020
7,235 45,237
80
80
24,700 90,499
24,700
201,359 2,584,875
Class 4
Remaining
Cumulative
Balance Due
Dlstrlbutlo ns
on Client
Through Final
Claims
30,746 54 16.788 95,672 622,449
291,858 2,655,433 930,965 4,291,829
484,711 2,906,084
45,223
2,263,957 45,223
1,538,730 30,736
16,829 103,799
16,329 103,799
35,745
35,745 701,843 9,587,378 369,332
11,438 70,549 24,295 477,018
270,558 640,705 4,270,423 2,263,957
701,843 158,930 207,834 49,347 253,807 50,106 6,212,016 1,378,310
290,260 21,406
9,428,449 161,498
37,661 108,434
87,008 253,807 158,540 6,212,016
695,032
17,658 12,588
2,073,342 17,658 12,588
563,774 8,363
563,774 8,363
17B,993
178,993
351,368 279,009
175,566
3,512,722
1,068,095 185,174
36,787
45,465
526,935 279,009 4,560,317 221,961
45,465 .•., nf <1
286,943 1.115,314 2,318 14,491 25
233,193 567,706 4,917
7,912
196.185 2,232,985 446.254
1.385,7 45 725,227
14,487 5,391
172,504
33,251 11,450 224,826 7,879,692 200,674 47,079 81,304
52,453 4,222,083
1,989,933
1.707,686 168,658 39,929
106,088
1,054.709 12,002
1,018,633 5,657
8,556 383,177
180,597
5,684 121,655
2,679 57,338
268,600 189,633
258,335 89,377
2,568,688
2,012,130
56,420
161: <:41
30,901
\
4,032
Prr:,)n~
71?1i(\f\
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L:\UT1HTAFT1IDISTCUM}Cum
~
HAMILTON TAFT & COMPANY Former Clients Included in Class 4 Claims Claims Outstanding After Fifth (Final) Distribution
0 ~
0
Combined Claims Accepted Combined Allowed Preference Client Sun Microsystems Federal, Inc. Sun Microsystems Of California Sun Microsystems, Inc. Sun Microsytems Europe, Inc. • Sunbelt Beverage Corp. Sunsweet Growers, Inc. Sybon Transition Corporation T.D.S. Foods, Inc. Tandem Computers, Inc. Texas Oil & Gas Corporation The Chronicle Publishing Co. The Cooper Companies, Inc. The EVB Company • The Kendall Company The Vintage Club Thermalkem Ungermann-Bass, Inc. United Savings Bank Verbatim Corporation Waste Chern Corporation WBF Technologies William Marsh Rice University Woodbridge Corp. Woodbridge Foam Fabricating Woodbridge Holdings, Inc. Woodbridge INAOC, Inc. Woodbridge Sales & Engineering Claims of Former Clients
Claim 24,072 3,071 791,228 991 235,423 13,141 8,803 11,306 2,036,652 34,562 1,088,632 18,289 27,318 1,021,088 23,614 57,304 1,030,845 96,676 390,760 22,386 421 829,202 88,031 18,529 458 30,779 4286 $90,0.46,313'
Claim
5,240,057 43,717
48,935 170,640 25,902 210,590 89,654
361,364 83,090
$39,717,006-
,
Class 4 Cumulative Distributions
Remaining Balance Due on Client
Claims 24,072. 3,071 791,228 991 235,423 13,141 8,803 11,306 7,276,709 78,279 1,088,632 18,289 76,253 1,191,728 49,516 57,304 1,241,435 186,330 390,760 22,386 421 1,190,565 171,121 18,529 458 30,779 11,286
Through Final 16,361
20,920 2,913
Claims 7,711 984 253,459 318 75,414 4,210 2,820 3,622 5,003,422 47,371 348,728 5,859 49,383 468,780 29,072 18,356 505,078 105,412 125,175 7,171 135 565,677 97,192 5,935 147 9,860 1,373
$129,763,319
$67,939,768
$61,823,550
2,087 537,769 674 160,008 8,931 5,983 7,684 2,273,287 30,908 739,904 12,431 26,870 722,948 20.444 38,947 736,358 80,918 265,586 15,215 286 624,889 73,929 12,593
312