19990915a Hamilton Taft Trustee's Statements

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

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,

...

:

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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38,946, '154

38,391

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Bankruptcy Djstributions Class 4 Creditors (Cumulative 67.25%)

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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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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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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

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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