Petters Bankruptcy Monthly Operating Report

UNITED STATES BANKRUPTCY COURTDISTRICT OF MINNESOTA

ln re:

Petters Company, Inc.

Debtor

3 Statement of Cash Receipts & Disbursements for Montha Total Receipts

b Total Disbursements

c Excess (Deficiency) of Receipts Over Disbursements (a-b)

d Cash Balance Beginning of Monthe Cash Balance End of Month (c+d)

4 Profìt/(Loss) from the Statement of Operations5 Account Receivables (Pre and Post Petition)6 Post-Petition Liabilities7 Past Due Post-Petition Account Payables (over 30 days)

Case No.: 08-45257

Chapter I I

MONTHLY OPERATING REPORT (AMENDED)

l0/r l/2008

SUMMARY OF FINANCIAL STATUS

Month Ended: October-I3 Filing Date;

I Debtor in possession (or trustee) hereby submits this Summary of Financial Status. Dollars reported in $L

End of End of2 Asset Structure Cunent Month Prior Month

a Current Assets (Market Value)b Total Assets (Market Value)c Current Liabilitiesd Total Liabilities

$3 64.270.720 s364,197,911

As ofPetition Filing

sr,216,930,538 $l,2 16.857.730 $1, 196,926,112

$455,402,380s492,673,172

$455,402,3803.172 s487,t22,604

CurrentMonth

$92,069s124,215-$32,146

924,943,0ss$24,910,910

CurrentMonth

$72,809$331,691,320

52'602s2'602

PriorMonth

$68,308

Cumulative(Case to Date)

196

sl,061,122-s992,8 l4

PriorMonth

-$ I ,105,608$33 I,688,060

52'602s2'602

Yes

$25,83 5,91 7

t4.279

Cumulative(Case to Date)

s14,453,859

At the end of this reporting month:

8 Have any payments been made on pre-petition debt, other than payments in the normal

course to secured creditors or lessors? (ifyes, attach listing including date ofpayment,

amount ofpayment and name ofpayee)

9 Have any payments been made to professionals? (ifyes, attach listing including date ofpayment, amount ofpayment and name ofpayee)

l0 Ifthe answer is yes to 8 or 9, were all such payments approved by the court?

'I I Have any payments been made to officers, insiders, shareholders, relatives? (if yes, attach

listing including date of payment, amount and reason for payment, and name of payee)

e¿-

No

X

X

X

X

l2 fs the estate insured for replacement cost ofassets and fbr general liability?

l3 Are a plan and disclosure statement on file?

l4 Was there any post-petition borrowing during this reporting period?

l5 Checkifpaid: post-petitiontaxes_X_; U.S.TrusteeQuarterlyFees-X-;Checkiffilingiscurrentfor: Post-petitiontaxrepoftingand

tax returns: _X_. (Attach explanation, if post-petition taxes or U.S. Trustee Quarterly Fees are not paid current or if post-petition tax

reporting and tax return filings are not current.)

The above summary and attached pages are based on Debtor's books and records, the completeness, validity and accuracy ofwhich is in question.

This information is compiled from various sources and represents a good faith estimate. Based on information uncovered during the related

federal fraud investigation, the market value ofall assets, and the likelihood receivables will be collected, has been called into question and may

ultimately be zero,

making reasonable

penalty ofperjury that I have summary and attached

ieve these documents are correct.

X

X

X

Date

DOCS-#27955 34-v6l -Petters-Monthly-Operating-Report-PCl XLS (Summary Page)

dual

(if applicable), and after

Case 08-45257 Doc 2141 Filed 12/16/13 Entered 12/16/13 10:33:21 Desc Main Document of 24

4:01 PM

11t14t13

Accrual Basis

ASSETSCurrent Assets

Checking/SavingsUS BANK CLAWBACK PROCEEDSUS Bank Operating Account

Total Checking/Savings

Other Current AssetsAR-Metro Gem FFAR-Metro Gem lnc.Employee Receivableslntercompay Receivables

I/C AR-FACUC AR.FDMl/C AR-Petters Consumer Brandsl/C AR-Petters Group LLCl/C AR Broadsignl/C AR Polaroid Gorporationl/C AR- Sun Country Airlinesl/C AR-Aaron Chang lntl LLCl/C AR-O'Shaughnessy HoldingUC AR-Petters Capital LLCl/C AR-Petters Media MarketingUC AR-TMII/C AR.TPIl/C AR-YFlyl/C AR - Zink lmagingl/C AR Petters Hospitalityl/C AR Pol Hospitalityl/C AR Polaroid Consumer Electrl/C AR SPEs

Total lntercom pay Receivables

lnventoryNotes Receivable Current

lC Notes Rec-Edge One LLClG Notes Rec-P GapitallC Notes Rec-P FinancelC Notes Rec-Petters I

lC Notes Rec-Petters Ltd.lC Notes Rec.- PAC Funding

Total Notes Receivable Current

Other Receivables

Total Other Gurrent Assets

PETTERS COMPANY, INC.

Balance SheetAs ofOctobel31,2013

Oct 31, 13 Sep 30,13 $ Change

24,138,855.17760,954.54

24,899,809.71

28,235,010.75146,853,176.40

21,934.62

24,055,886.00774,375.04

24,830,261.04

28,235,010.75't46,853,176.40

21,934.62

82,969.1 7-13,420 50

69,548.67

0.000.000.00

220.005,600.834,573.80I ,640.13

172,109.',t1219.17268.15

-2,764.3215,293.732,190.22

483.5058,206.88

6,641.09437.30

44,098.5412,374.98

11.60394.53

59,81 1.50

0.005,600.834,573.801 ,640.13

172,109.11219.17268.1 5

-2,764.3215,293.732,190.22

483 5058,206.88

6,641 09437.30

44,098.5412,374.98

11.60394.53

56,771.50

220.00000000000000000000000000000000000000000000000000000

3,040 00

381,810.74

7,679,590.00

378,550.74

7,679,590.00

3,260.00

0.00

000

000

3,260.00

30,1 80,1 1 5.7082,319,598.43

-1,436.2211,082,864.195,211,889.15

25,853,849.20

30,1 80,1 1 5.7082,319,598.43

-1,436.2211,082,864.195,211,889.15

25,853,849.20

0.000000000000.00000

154,646,880.45

1,552,507.22

154,646,880.45

1,552,507.22

339,370,910.18 339,367,650.18

Page 1


4:01 PM

1'U14t13

Accrual Basis


Balance SheetAs of October 31,2013

Total CurrentAssets

Fixed AssetsEquipmentEquipment- Accumulated Deprec

Total Fixed Assets

Other AssetslG Notes Receivable

UC NR-P AVIATION LEASINGI/C NR- PWDI/C NR-FACl/C NR-P Capital LLCl/C NR-P Capital tax adjUC NR-P Fashion GroupI/C NR-PCBUC NR-PCLLCl/C NR-Petters VB, LLCI/C NR.PGLLCl/C NR-Spri ngworks-Symorphicsl/C NRSpringworks-WCI/C NR-TPIUC NR - Gentr Amer Hldg LLCl/C NR P AviationlC NR-Trio Marketing

Total lC Notes Receivable

lC Notes Receivable-l nterestl/C NR lnt-P Capital LLCl/C N R lnt-Springworks-Symorphil/C NR lnt.-Springworks-WCl/C NR lnterest-FACl/C NR lnterest-FDMl/G NR lnterest-P Fashion Groupl/C NR lnterest-PCBl/C NR lnterest-PCLLCl/C NR lnterest-PcLLClC NR lnterest-Central Am HoldlC NR lnterest-Trio Mkt.

Total lC Notes Receivable-lnterest

lnvestmentEntrepreneur's Place,Ethanol PlantZINK

Total lnvestment

Oct 31, 13

534,024.17709,606.95

4,524,194.8180,792,536.3810,037,016.00'17,822,884.128,982,645.00

23,449,816.09't0,468,819.04

15,823,899.2321,403,796.0024,517,569.8724,713,559.11'15,390,000.00

1,947,944.72479,792.76

'18,975,629.31

20,533,374.9613,327,185.2715,377,477.28

96,250 008,1 15,086.041,982,395.27

27,801 ,483.52-67,320,778.01

658,248.80178,423.90

Sep 30,13

534,024.17709,606.95

4,524,194.8180,792,536.3810,037,016.0017,822,884.128,982,645.00

23,449,816.0910,468,819.04'15,823,899.23

21,403,796.0024,517,569.8724,713,559.1115,390,000.00

't,947,944.72479,792.76

$ Ghange

364,270,719.89

7,656.73-4,1 89.00

3,467.73

364,197,911.22

7,656.73-4,1 89.00

3,467 73

72,808 67

0.000.00

0.00

0.00

0.00

0.00

Page 2

261 ,598,104.25 261 ,598,1 04 25

0.000.000.000000.000.000.000.000.000.000.000.000.000.000.000.00

0.000.000.000000000000000000000000,00

18,975,629.3120,533,374.9613,327,185.2715,377,477.28

96,250.008,I I 5,086.041,982,395.27

27,801,483.52-67,320,778.01

658,248.80178,423.90

39,724,776.34 39,724,776.34

250,000.00250,000.00

23,062,000.00

250,000.00250,000.00

23,062,000.00

23,562,000.00 23,562,000.00

0.000.000.00


4:01 PM

,t1t14t13

Accrual Basis

lnvestment in Subsidiaries1000 LakesCentral Am HoldingFDM-FAC StockFingerhut Direct Mktg.P Capital LLC

Total lnvestment in Subsidiaries

Notes ReceivableNote Receivable-BlS Sales

NR lnterest BLSNote Receivable-BLS Sales - Other

Total Note Receivable-BlS Sales

Note Receivable-Tom PettersNR.TJP/PCBPolaroid

lnterest Rec. PolaroidPolaroid - Other

Total Polaroid

RainmakerSavage EnterprisesTurpin NRZink

lnterest Rec.-ZinkZink - Other

Total Zink

Total Notes Receivable

Total OtherAssets

TOTAL ASSETS

LIABILITIES & EQUITYLiabilities

Current LiabilitiesAccounts Payable

Accounts Payable

Total Accounts Payable

Other Current LiabilitiesDeferred lncomeDeferred lncome AdjustmentsDue to Central America HoldingsDue to PC Funding


Balance SheetAs of October 31, 2013

Oct 31, l3

172,860,420.4655,000.00

24,000,000.0011,604,062.99

200,000,000.00

Sep 30, l3

172,860,420.4655,000.00

24,000,000 0011,604,062.99

200,000,000.00

$ Change

00

0.000.000.00000000

000

0.00000

408,519,483.45 408,5.19,483.45 0.00

99,574.551,788,764.79

7,551,780.8120,000,000.00

1,425,728.1912,559,404.92

1,888,339.34

65,176,733.3710,000,000.00

99,574.551,788,764.79

7,551,780.8120,000,000.00

1,888,339.34

65,1 76,733.3710,000,000 00

0

0

27,55',t,780.81

85,000.00495,000.00

70,000.00

27,551 ,780.81

85,000.00495,000.00

70,000.00

0.00000

0.000.00

0.00

0.000.000.00

1,425,728.1912,559,404.92

13,985,133.1 1 13,98s,133.11 0.00

119,251,986.63 0.00

852,656,350.67 0.00

1,216,857,729.62 72,808.67

423,612.08 000

423,612.08 0.00

1 19,25'1 ,986.63

852,656,350.67

1,216,930,538.29

423,612.08

423,612.08

862,797,152.01-759,926,941.80

93,235.0018,968,380.62

862,797 J52 01

-759,926,941 .8093,235.00

18,968,380.62

0.000.00000000

Page 3


4:01 PM

11n4t13Accrual Basis



Oct 31, l3

41,500,000.0060,000,000.00

'1,000,000.00

31,000,000.00130,330,000.0027,620,000.00

1,631,833.3311,540,983.61

42,074.4811,576,721.319,4'13,763.331,891,566.11

10,075,000.00294,508.1 9

Sep 30,13 $ Change

Due to PGENotes Payable Current

Notes Payable-AprivenNotes Payable-lnterlachenNotes Payable-P Capital LLCNotes Payable-RitchieNotes Payable-MGlNotes Payable-Mcl FF

Total Notes Payable Current

Notes Payable lnterestlnterest Payable-Aprivenlnterest Payable-lnterlachenlnterest Payable-P Capital LLClnterest Payable-Ritchie Capitlnterest Payable-MGllnterest Payable-MGl FF

Total Notes Payable lnterest

291,450,000.00

5,500,000.00

r 0,369,508.19

41,500,000.0060,000,000.00

r,000,000.0031,000,000.00

130,330,000.0027,620,000.00

1,631,833.3311,540,983.61

42,074.4811,576,721 .31

9,413,763.331,891,566.'11

10,075,000.00294.508.'19

291 ,450,000.00

5,500,000.00

10,369,508.19

0.000000.000000.000.00

0.000.000.000.000.000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

72,808.67

Total Other Current Liabilities

Total Current Liabilities

Long Term LiabilitiesNotes Payable

Notes Payable OtherNotes Payable Other lnterest

Total Notes Payable

Private lnvestor NotesPrivate lnvestorlnterestPrivate I nvestor-Principal

Total Private lnvestor Notes

Total Long Term Liabilities

Total Liabilities

EquityCapital StockDividends PaidRetained EarningsRetained Earnings 2003Retained Earnings PC Fund 2002Net lncome

Total Equity

36,096,942.17

454,978,768.00

455,402,380.08

36,096,942.17

454,978,768.00

455,402,380 08

000000

751,283.3326,1 50,000.00

751,283.3326,150,000.00

0.00000

26,901,283.33

37,270,791 .52

492,673,171.60

15,605,000.00-1 1 ,018,879.92606,037,811.35

65,273,683.9746,143,659.89

2,216,09',1.40

26,901,283.33

37,270,791 .52

492,673,',171.60

15,605,000 00-1 I ,0'18,879.92606,037,811.35

65,273,683.9746,143,659.89

2,'t43,282.73

0

000

00000000006772 808

724,257,366.69 724,184,558.02

Page 4


4:01 PM

,t1t,t4l1l

Accrual Basis

TOTAL & EQUITY



Oct 3l , 13 Sep 30, 13 $ Change

1,216,930,538.29 1,216,857,729.62 72,808.67

Page 5


4:02 PM

111141'13

Accrual Basis


Profit & LossOctober 2013

Ordinary lncome/ExpenseExpense

Bank Service ChargesF¡ling FeesProfessional Fees

Legal Fees

Total Professional Fees

Salaries and BenefiGBonuses

Total Salaries and Benefits

Travel & EntTravel

Total Travel & Ent

Total Expense

Net Ordinary lncome

Other lncome/ExpenseOther lncome

lnterest lncome

Total Other lncome

Other ExpenseOther Expenses

lnterest Exp-MGl

Total Other Expenses

Total Other Expense

Net Other lncome

Net lncome

Oct 13

75 506,500.00

10,685.00

10,685.00

-3,783.41

-3,783.41

2,000.00

2,000.00

15,477.09

-15,477.09

1,023.26

1,023.26

-87,262.50

-87,262.50

-87,262.50

88,285.76

72,808.67

Page I


4:04 PM

11t14t13

Accrual Basis


Profit & LossOctober'12, 2008 through October 31, 2013

Qcl 12,'08 - Oct 31 , 1 3

Ordinary lncome/ExpenseExpense

Amortization ExpenseBank Service ChargesContributionsFiling Feeslnsurance

Liability lnsurancelnsurance - Other

Total lnsurance

Payrol I Service Expense-ADPPostage and DeliveryPrinting and ReproductionProfessional Fees

AccountingConsultingLegal FeesOther

Total Professional Fees

RentSalaries and Benefits

BenefitsBonusesPayroll TaxesSalaries and wages

Total Salaries and Benefits

SuppliesOffice

Total Supplies

TelephoneTravel & Ent

Travel

Total Travel & Ent

Total Expense

Net Ordinary lncome

Other lncome/ExpenseOther lncome

lnterest BLSlnterest lncomeOther lncome

0008,222.46

-1 ,727,341 .2661,815.00

-135,830.76-30,155.27

-165,986.03

4,144.80188.63

33,394.24

6,469,751 .91

651,806.616,616,434.28

455,204.43

6,037.52-3,663,207.81

2'1,086.55262,500.84

14,193,197.23

18,378.78

-3,373,582.90

162.85

'162.85

983.1 0

-4,587.47

-4,587.47

9,048,989.43

-9,048,989.43

127,017.5511,840.76

Page 1


4:04 PM

.i.i114113

Accrual Basis


Profit & LossOctober 12,2008 through October 31,2013

Oct 12, '08 - Oct 31, 13

Clawback ProceedsOther lncome - Other

Total Other lncome

Total Other lncome

Other ExpenseOther Expenses

lnterest Exp-Private I nvestorslnterest Exp-MGllnterest Exp.-MGl FFlnterest Exp. Other NPlnterest Expense Lancer

Total Other Expenses

Total Other Expense

Net Other lncome

Net lncome

21,510,745.2823,313.12

21,534,058.40

21,672,916.71

-129,512.50-329,475.00-305,500.00

-1 ,062,185.00-3,258.90

-'1 ,829,931.40

-r,829,931.40

23,502,848.11

14,453,858.68

Page 2


Case Name: Petters Company, lncCase Number: O8-45257

CASH RECEIPTS AND DISBURSEMENTS (Calendar Quarter)Month 1

of uartern ng

RECEIPTS FROM OPERATIONSCash SalesLess: Cash RefundsNet Cash Sales

COLLECTIONS OF ACCTS. REC.Pre-PetitionPost-PetitionOther:Total Operating Receipts (lines 4+5+6+7)

NON-OPERATING RECEIPTSLoans/Advanceslnterest on Deposit AccountsSale of AssetsOther: Clawback ProceedsOther: Bank FeesTotal Non-Operating Receipts (lines 9+10+11)Total Receipts (lines 8+12)Total Cash Available (lines 13+1)

OPERATING DISBURSEMENTSNet PayrollPayroll Taxes-PaidSales, Use & Other Taxes PaidConsulting FeesSecured/Rental/LeasesEmployee BenefitsUtilitieslnsurancelnventory PurchasesVehicle ExpenseTravelEntertainmentRepairs & MaintenanceSuppliesAdvertisingOther: Bank Service ChargeOther: Registered Agent FeesTotal Operating Disbursements

REORGAN IZATION EXPENSESProfessional FeesU.S. Trustee Quarterly FeesOther: Litigation ExpensesOther: Mediation ExpensesTotal Reorganization ExpensesTotal Disbursements (lines 31+36)Cash - End of Month

Month 2of Quarter

Month 3

of QuarterQuarterTotal

1

I9a10

11

11a1213

14

2

3

4

5

67

8

32333435363738

15

16

17

1819

2021

222324252627282930

30a31

$ 24.943.055.41$ 24,943,055.41 $

$

$

$

$

$$$

$

$

$

$

$

$

$$

$$

$

$$

$

$$

$$

$$

$

$

$

$

$$$

$

$

$

$

$

$$

$$

$

$

$

$$

$

$

$

$

$

$$

$

$

$

$

$

$$$

$

$

$

$

$

$

$

$

$

$

$

91,045.91

92,069.1792,069.17

25,035,124.58

112,794.37

5,350.005,335.00

123,479.37124,214.87

24,910,909.71

1,023.26

75.50660.00735.50

$ e2,069.17$ 92,069.17$ 25,035,124.58

112,794.37

$ 5,350.00$ 5,335.00fi 123,479.37g 124,214.87$ 24,910,909.71

1,O23.26

$

$

$

$$$$

$$$

$

$

$

$

$$$

$

$

$

$$$

$$

$$$

$

91,045.91

75.50660.00735.50

$

$

$

$

$$

$

$

$

$

$

$

$

$$$

$

$

$

$$

$

$

$

$

$

$

$

$

$$

$

DOCS-#27955 84-vó I -Petters_Monthly_Opcrating_Repoú-PCLXLS (Cash Receipts and Disbur sements)


Case Name:Case Number:

DateReceived

Petters Company, lnc.0B-45257

ITEMIZATION OF CASH RECEIPTS

on

TOTAL

Amount

Amount

CHECKS RECEIVED BUT NOT DEPOSITED

Datelssued P Descri

Total

Recoveries on Avoidance ClaimsRecoveries on Avoidance ClaimsRecoveries on Avoidance Claimslnterest

44,912.503,683.41

42,450.001,023.26

$$$

$

1017120131011612013

10t281201310t31t2013

VariousVariousVariousUS Bank

$ 92,069.17

$ 92,

DOCS-#2795584-v6l-Petters_Monthly_Operating_Report-PCI.XLS (ltemization of Cash Receipts)


4:03 PM

111'l4l,l3


Deposit DetailOctober 2013

Date NameType Num

10t7t2013

't0t't6t2013

10t28t2013

10t31t2013

METRO GEM, INC.METRO GEM, INC.METRO GEM, INC.EMPLOYEE CI.AW...

Account

US BANK CLAWB...

lnterest Exp-MGllnterest Exp-MGllnterest Exp-MGlBonuses

Amount

44,912.50

44,912.50

3,683.41

-3,583.41-100.00

-3,683.41

42,450.00

-20,000.00-22,250.00

-164.00-36.00

-42,450.00

1,023.26

-1 ,023.26

-1 ,023.26

-7,000.00-37,500.00

-312.50-100.00

Deposit

TOTAL

Deposit

TOTAL

Deposit

TOTAL

EMPLOYEE CI.AW..EMPLOYEE CLAW..

METRO GEM, INC.METRO GEM, INC.METRO GEM, INC.METRO GEM, INC.

US BANK

US BANK CLAWB...

BonusesBonuses

US BANK CLAWB...

lnterest Exp-MGllnterest Exp-MGllnterest Exp-MGllnterest Exp-MGl

US BANK CLAWB...

lnterest lncome

Deposit

TOTAL

./ a lq / t 74., ,: E '4. r-7

f 74, Ò 6q', 17

Page 1



Petters Company, lnc.08-45257

ITEMIZATION OF CASH DISBURSEMENTS

DatePaid

CHECKS ISSUED BUT NOT PRESENTED FOR PAYMENT

Datelssued on

CheckNumber

CheckNumber

TOTAL

GRAND TOTAL

Amount

Amount

$ 135,204.87

10t41201310t71201310t8t2013101812013

10t9t201310t15t201310t2412013101281201310t28t2013101281201310t28t201310t28t201310t30t2013

Fafinski, Mark & JohnsonFruth, Jamison & ElsassKelley, Wolter & Scott, PABoies, Schiller & FlexnerWeisbart Law OfficeUS BankJAMSNational Registered AgentNational Registered AgentNational Registered AgentNational Registered AgentNational Registered AgentRichard Solum

Professional ExpensesProfessional ExpensesProfessional ExpensesProfessional ExpensesProfessional ExpensesBank Service Fee

Registered Agent FeesRegistered Agent FeesRegistered Agent FeesRegistered Agent FeesRegistered Agent Fees

itration Fee

Mediation

10161017101810191020

wtre102210231024102510261028

69,872.834,704.68

24,163.77727.28

13,325.8175.50

5,350.00I 10.00110.00110.00110.00110.00335.00

$

$

$

$

$

$$$$$$$

$1 104.87

US Trustee FeesLitigation Expense

30481029

9,100.002,000.00

$

$101141201310t15t2013

US TrusteeSanibel Harbour

DOCS-#2795584-v6l-Petters_Monthly_Operating_Report-PcLXLS (ltemization Cash Disbursements)


4:05 PM

11t14t13

PETTERS COMPANY, INC.Gheck Detail

October 2013

Name Item Paid Amount Original AmountType Num Date Account

Check

TOTAL

Check

TOTAL

Check

TOTAL

Check

TOTAL

Check

TOTAL

Check

wire 10|1512013 US BANK

wire 1012412013 JAMS, lnc.

1022 10t2t20',t3 NATTONAL REG|S...

1023 10t2t20't3 NATTONAL REG|S...

1024 10t2t2013 NATTONAL REG|S...

1025 101212013 NATTONAL REG|S...

US Bank Operatin..

Bank Service Char. .

US Bank Operatin..

Legal Fees

US Bank Operatin..

I/C AR SPES

US Bank Operatin..

l/C AR SPEs

US Bank Operatin...

l/C AR SPEs

US Bank Operatin..

l/C AR SPEs

US Bank Operatin...

I/C AR-FAC

US Bank Operatin...

Legal Fees

US Bank Operatin...

Travel

US BANK CLAWB...

-75.50

-5,350.00

-5,350.00

-110 00

-75,50

-75.50

75 50

75 50

-5,350.00

5,350 00

5,350 00

-110.00

'l 10.00

-110 00

-1 10.00

110.00

-l 10.00

110.00

-1 10.00

-1 10.00

110.00

-1 r 0.00

110.00

-1 10.00

-1 10.00

1 10.00

-1 10.00

1 10.00

TOTAL -1 10.00

-220.00

1 10.00

-220.00

220.00

Check 1026 10t2t2013 NATTONAL REG|S...

TOTAL

Check 1028 10t15t2013 RICHARD B SOL...

TOTAL

Check 1029 10115120'13 Sanibel Harbour...

TOTAL

Bill Pmt -Check 3048 1011412013 U.S. TRUSTEE

-220.OO

-5,335.00

220.00

-5,335.00

5,335.00

-5,335.00

-2,000.00

5,335.00

-2,000.00

2,000.00

BiilBiilBiilBiilBiilBiilB¡IIBiilBiil

6440...6440...6440...6440...6440...6440...6440...6440...6440...

10t14t20't310t141201310t14t201310t14t201310t14t20131011412013't0t14t20't310t't4t20131011412013

Filing Feesl/C AR SPEsl/C AR SPEsl/C AR SPEsl/C AR SPEsl/C AR SPEsl/C AR SPEsl/C AR SPEsl/C AR SPEs

-6,500.00-325.00-325.00-325.00-325.00-325.00-325.00-325.00-325.00

-2,000.00 2,000.00

-9,100.00

6,500.00325.00325.00325.00325.00325.00325.00325.00325.00

Page 1


4:05 PM

11t't4t13

PETTERS COMPANY, INCCheck Detail

October 2013

Item Paid Amount Original AmountType Num Date Name Account

TOTAL -9,100.00 9,100.00

lt/-øl û&tJ 6A^, ()1- aÔ, 3

Page 2


MonthTotal

$24,910,909.71

$0.00

$0.00

$11,100.00

$0.00

$24,899,809.71$24,899,809.71

Acct:No:

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00$0.00

US BankAcct clawbackNo: xxxxxx5084

$24,147,955.17

$0.00

$0.00

$9,100.00

$0.00

$24,138,855.17$24,138,855.17$760,954.54

US BankAcct: operatingNo: xxxxxx 7806

$762,954.54

$0.00

$0 00

$2,000.00

$0.00

$760,954.54Per Books

Balance Per Bank Statement

Add: Total Deposits Not Credited

Add: Service Charges

Subtract Outstanding Checks

Subtract: lnterest Earned

End of Month Bank Balance


Petters Companv, lnc.0845257

BANK RECONCILIATIONSMONTH: October-13

The Debtor in Possession must complete the Reconciliation below for each bank account (e.g., General Payroll, Tax, etc.),including all savings and investment accounts (e.9., money market accounts, certificates of deposit, government obligation,etc.). Attach additional sheets if necessary.

Bank Account Purpose:Bank Account Number:

1

2

3

4

5

6

Investment Accounts:

Total Cash - End of Month:nes 6+1'l

CurrentValue

PurchasePrice

TYPe

of lnstrumentDate

of PurchaseNONE

TOTAL

Account Nameand Number

78

9l011

DOCS+2795584-v6l-Petters_Monthly_Operating_Report-PCI.XLS (Bank Reconciliations)

$ 24,8 809.71


QuarterTotalMonth 3Month 2

$

Month 1

Type ofnsation

to lnsidersTotal

lnsiders: NameNONE1

2

567Io

1011

12

Of the total disbursements shown for the month, please list the amount paid to insiders (as defined in Section 101 (31) (A)-(F) of the U-S. Bankruptcy Code)

and the professionals. Also, for payments to insiders identify the type of compensation paid (e.g., salary, bonus, commission, insurance, housing allowance,

travel, car allowance, etc.) Attach additional pages as necessary.

Petters Company, lnc.0845257

PAYMENTS TO INSIDERS AND PROFESSIONALS


$$$ 37,489.58

QuarterTotal

$ 727.28$ 69,872.83$ 4,704.68$$

13 325.81

$$ 24j63.77$$

$

Month 3

$

Month 2

$ 37,489.58

$ 13,325.81

$ 24,163.77

Month 1

$ 727.28$ 69,872.83$ 4,704.68

9t30t2013

9t3012013

Date of CourtOrder Authorizing

Payment9r30120139t30t20139t3012013

Total: Professionals

Boies, Schiller & Flexner LLP

Fafinski Mark & JohnsonFruth, Jamison ElsassLi uist & Vennum LLP

P rS

Mark A. WeisbartWithers BVIKellv. Wolter & Scott, PA

Professionals: Name

2425

151418161319

212223

17

DOCS+2795584-v61-Petters_Monthly_OperatinaReport-PClXLS (P)'mnts to lnsiders Professional)



Petters Company, lnc.0B-45257

STATUS OF POST-PETITION TAXESMonth: October-13

Ending TaxLiabilitv

BeginningTax

Liabilitv.

AmountWithheld and/or

AccruedAmount

PaidFEDERAL$01 Withholdinq** $0 $0 $0

$0 $02 FICA-Emplovee** $0 $o$0 $0 $03 FICA-Emplover*" $0$0 $0 $o4 Unemplovment $0$0 $0 unknown5 lncome unknown

$o$0 $o6 Other (list) $o$0$o $0 $07 Total FederalTaxes

STATE & LOCAL$o$0 $0I Withholdinq $0$0$0 $09 Sales $0

$0 $o$0 $o10 Excise$0 $0$0 $011 Unemployment$0 $0$0 $012 Other$0 $0$0 $013 Real Property

$0$0 $0$014 Personal Property$0$0 $oOther (list) $015$0$0 $0$016 Total State & LocalTaxes

$0 $0$017 TOTAL TAXES DUE $o

List any pre-petition taxes paid during reporting period none

Explain the reason for any payment on pre-petition taxesDEBTOR HAS NOT PAID ANY PRE-PETITION TAXES.

Explain the reason any post-petition taxes are past dueTO MY KNOWLEDGE NO POST PETITON TAXES ARE PAST DUE.

* The beginning tax liability should represent the liability from the prior month, or if this is the first operating report, the

amount should be zero.

** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payments or deposits.

DOCS-#2795584-v6l-Petters_Monthly_Operating_Report-PCLXLS (Status of Post-Petition Taxes)



Petters Compa , lnc.08-45257

AGING SCHEDULE OF POST-PETITION PAYABLESMonth: October-13

Accounts Payable:Vendor

Current0-30Days

31-60Davs

61-90DaVs

91 & OverDays TOTAL

I See attached $2 $3 $4 $5 $6 $

$7I $9 $

10 $11 $12 $13 $14 $

TOTAL PAYABLES $ $ $ $ $

TAXES PAYABLETaxinq Authoritv

16 Federal $17 $State1B $19 $20 $21 $

TOTAL TAXES $ $ $ $ $

DOCS-#27955 84-v6l -Petters_Monthly_Operating_Report-PCLXLS (Aging Schedule of PostPetition)


4:03 PM11t'.t4t13

PETTERS COMPANY, INC

A/P Aging DetailAs of October 3'l,2013

Type Date Num Name Due Date Aging Open Balance

-

Current

Total Current

't -30Total 1 - 30

31 -60Total 31 - 60

6'l - 90

Total 61 - 90

>90

>90

>90

111061200A

11117 t200A

12106t2008

01 /1 6/2009

031o112009

221 28

312 59

236 43

-2.21

215.01

1 ,619.26

B

B

B

B

B

1012712008

1110712008

1112612008

1212212008

01to6t2009

03/01 /2009

Acct #8367941 1 3

Acct #73 1 540364

Acct #8367941 1 3

lnv #1951785990

Acct #731 540364

lnv #1 0/1 0/08

AT&T Mobil¡ty

AT&T Mob¡l¡ty

AT&T Mobil¡ty

Ver¡zon W¡reless-PA

AT&T Mobility

PETTERS GROUP. LLC

TOTAL POST PETITION LIABILITIES

PRE PETITION LIABILITIES

1,820

1,809

1,790Cred t

Biil

Credit

Credit

B¡II

B¡II

Credit

B¡II

B¡II

B¡II

B¡II

Biil

Biil

B¡II

Biil

B¡II

B¡II

Biil

Biil

Biil

Biil

B¡II

B¡II

Biil

Biil

Biil

Biil

Biil

BiII

Biil

Biil

B¡II

Biil

B¡II

Biil

B¡II

Biil

o110812004

111O112005

111O112005

oTto'U200a

0710912008

071171200a

0711712008

0712112008

07t31t2008

0713112008

08/0 1 /2008

08i01/2008

0712312008

08t12t200a

o81121200a

08/01/2008

0812512008

08t25t200a

0811512008

081211200a

08t2112008

0813112008

0813112008

08/31 /2008

09/01/2008

09lo1l200a

09i01/2008

09/01/2008

09lo'U2008

09/06/2008

091241200a

09/1 5/2008

091251200a

0912s12008

09/1 5/2008

09/1 5/2008

0711712008

07121t2008

07t31t2008

0713112008

081o112008

08/0 1 /2008

08t02t2008

0811212008

0811212008

08116t2008

08t25t2008

0812512008

08/30/2008

08/31/2008

08/3 1 /2008

o4t31t2008

o813112008

08131t2008

09/01/2008

09101t2008

09/01/2008

0910112008

0911612008

09/16/2008

09t24t2008

09t25t2008

0912512008

0912512008

09/30/2008

09/30/2008

215.08

-47.57

-47.57

75,000.00

70 73

-6,775.00

613.85

4,063.48

437.16

3,238.53

75,000.00

4,280.00

1 38.1 I82 55

32.0O

12,500.00

3.1 9

16.00

12,500.00

210.00

1,897.60

3,238.53

475.21

6,195.99

75,000.00

4,280.00

4,280.00

12,685.89

12,500.00

107.55

98.42

19.01

32.20

7,269.42

12,500 00

67 19

#cwc 0323463

cRM185cRM184

INV #7532

lnv #7641

PCI lnv #14375

lnv #7671

lnv #7688

lnv #7754

lnv #7761

lnv #7719

lnv #7703

lnv #1887927533

lnv #7780lnv #7784

lnv #20060'192

lnv #7820lnv #7831

lnv #200601 93

#341 0503468431

lnv #1 0061 05

lnv #7871

lnv #7850

lnv #7860

lnv #7901

lnv #7886

lnv #7981

lnv #8079

lnv #200601 94

lnv #1 905753291

lnv #292946468

lnv #224567

lnv #888966713

lnv #7969

lnv #200601 95

Aæt#341724234

HARRIS HOMEYER COMPANY

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

Petters Capital, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

Verizon Wireless-PA

PETTERS GROUP, LLC

PETTERS GROUP, LLC

THOMAS PETTERS, INC.

PETTERS GROUP, LLC

PETTERS GROUP, LLC


Sam's Club

FREDRIKSON & BYRON

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC


Ver¡zon Wireless-PA

FEDERAL EXPRESS

Street Fleet

FEDERAL EXPRESS

PETTERS GROUP, LLC

THOMAS PETTERS, INC

T-Mobile

0111812004 3,574

071o112008

071o91200a

1,948

1,940

1,749

1 705

1,932

1,928

1 ,918

1 ,918

1,917

1,917

1 ,916

1,906

1,906

1,902

1,893

1,893

1,888

1,887

1,887

1,887

1,887

1,887

1,886

1,886

1,886

1,886

1,871

1,871

1,863

1,862't,862

1,862

1,857

1,857

2,602.36

Page 1 of 2


4:03 PM11t',t4t't3


A/P Aging DetailAs of October 31,2O13

Type Date Num

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

PETTERS GROUP, LLC

AT&T Mobil¡ty

AT&T Mobility

PETTERS GROUP, LLC

200 Water LLC

FREDRIKSON & BYRON

FREDRIKSON & BYRON

FREDRIKSON & BYRON

FREDRIKSON & BYRON

PEIIERS GROUP, LLC

THOMAS PETTERS, INC

Verizon Wireless-PA

AT&T Mobility

Alliance Cour¡er

TOTAL PRE PETITION LIABILITIES

TOTAL LIABILITIES

Open Balance

3,238 53

3,438 36

387 99

1,173 52

13 09

57 59

75,000 00

-1A2 70

75,000 00

890 81

501 46

20 00

1,680.00

806 40

51,842.80

14,812 77

5,957 46

49 68'12,500 00

389.23

1 ,241.78

IC.JJ

421,009.72

$ 423,612.08

Name Due Date

09/30/2008

09/30/2008

09/30/2008

09/30/2008

09/30/2008

09/30/2008

101011200a

10t03t2008

1010312008

1010612008

10t11t2008

10111 12008

10t11t2008

1011112008

1011112008

't0111t2008

1011612008

1011612008

1011712008

10t2012008

-gs-1,A57

1,857

1,857

1,857

1,857

1,857

1 856

1,854

1,854

1,851

1,846'1,846

1,846

1,846

I,8461,846

1,841

1,841

1,840

1,A37

Biil

B¡II

B¡II

B¡II

Biil

Biil

BiII

Credit

Credit

Biil

Bilt

Biil

Biil

Biil

B¡II

B¡II

Biil

Biil

B¡II

B¡II

Biil

B¡II

09/30/2008

09/30/2008

09/30/2008

09/30/2008

09/30/2008

09/30/2008

101o112008

101o1t2008

10t01t2008

09t23t2008

0912312008

1 0/06/2008

101o1t200a

101o1t200a

1 0i01 /2008

101o11200a

101o11200a

1011112008

101o112008

1 0/06/2008

1010712008

1011012008

lnv #8047

lnv #8012

lnv #8032

lnv #8020

lnv #8087

lnv #8091

lnv #7993

cRM0007969

cRM000745lnv #731 540364

Acct #8367941 '13

lnv #8070

lnv #24910'to440

1 01 0433

1010417

1010418

lnv #8104

lnv #20060 1 96

lnv #1 9l 8501 285

Acct #731 540364

lñv #12747

Tota > 90

Page 2 ol 2



Petters Company, lnc.08-45257

POST.PETITION STATUS OF SECURED NOTES, LEASESPAYABLE AND ADEQUATE PROTECTION PAYMENTS

Month: October-13

* A creditor or lessor who is also an officer, shareholder or an insider by reason of relationship or control, is to be

identified by **.

ACCOUNTS RECEIVABLE AGING

Total Unpaid

Post-Petition Secured Notes, Leases Payable andAdequate Protection Payments(Unpaid Post-Petition Onlv)

Scheduled MonthlyPavment Due

Amount PaidDuring Month

$List Creditor/Lessor *

$22 NONE$23$24$25$26

$ $ $TOTAL DUE

Month 1

of QuarterMonth 2

of QuarterMonth 3

of QuarterAGING1 none2345

DOCS-#2795584-v6l-Petters_Monthly_Operating_Report-PCI.XLS (Status of Notes and AR Aging)


Case Name: Petters Company, Inc.

United States Bankruptcy Courl District of

Case Number: 08-45257

of Po Carrier

QUESTIONNAIRE

Minnesota

Division

Month: October- l3I Taxes:

Are all post-petition payroll, state and federal taxes current?

Yes X No( )Are all post-petition income taxes, state and federal, current?

Yes X No( )Are all other post-petition taxes current?

fes X No( )lfthe answer to any ofthe questions above is no, please list the balances which are outstanding on the schedules ofpost-petition

taxes payable.

Are workers compensation, general liability and other necessary insurance in effect?

Yes( ' No(X)Are all premium payments current? - N/A

Yes( . No( )

PLEASE ITEMIZE ALL POLICIES:ExpirationDate

InstallmentPmt Amt.

PeriodCovered

Paid

3 Have any payments been made to any pre-petition creditors?

Secured Yes ( ) No XPriority Yes ( ) No XUnsecured Yes ( ) No XIf yes, please identif to whom the payment(s) has been made, the date(s) and the amount(s).

4 Have any assets been sold outside the normal course ofbusiness?Yes( . No X

If yes, please describe the assets which were sold and attach an order by the Courl authorizing the sale,

5 Have all funds been deposited in and disbursed from the Chapter 1 1 debtor bank accounts?

YesX No ( )

6 Are all post-petition accounts receivable due from non-related parties?

YesX No ( )

7 What specific efforts have been made in the past month toward the development of a Plan of Reorganization?

PncewaterhouseCoopers, LLP ("PwC") a tbrensic accountrng t¡rm, has analyzed the receipts ot, as well as disbursements ot,

fundsinthiscase,aswell asaffiliatedcases. PwCpreparedaninterimreportthatwasfiledwiththeCourtonDecemberl5,20l0The Trustee has filed more than 200 adversary complaints seeking to avoid and recover fraudulent and preferential transfers made

by the Debtors for the benefit of creditors. Defendants filed more than 100 motions to dismiss on all or certain counts of the

complaints, and discovery has been stayed by the Court pending resolution ofthese motions. The Court conducted three days ofhearings on common issues raised in the motions to dismiss in October/1.{ovember 2011 and recently issued three Memoranda

dated June 19,2013, August 30,2013 and September 30,2013. A hearing on the Trustee's motion to substantively consolidate

PCI and 8 special purpose entity debtors was held in December 20ll and is currently under advisement. The Trustee has

continued to seek the resolution ofthe pending adversary proceedings, through mediation or settlement, and has settled several

adversary proceedings and has or will seek approval of such settlements from the Court. The Courl has scheduled a status

conference for November 21 , 2013 at which time it is anticipated the Court will address the timing of additional pleading,

discovery and dispositive motions. It is presently not contemplated that a plan of reorganization will be fi led until such time as

material resolution has occurred with respect to the pending litigation,

DOCS-#2795584-v6l -Petters_Monthly_Operating_Report-PCI XLS (Questionnaire)


Debtor/Trustee's Certification

Näme of Attorney: James A. Lodoen

Lindquist & Vennum PLLP

Address:

City, State, Zip:

Telephone:

42OO IDS CENTER

80 South Eiqhth Street

Minneapolis, MN 55402

612-371-3211

I CERTIFY UNDER PENALTY OF PERJURY THAT I HAVE REVIEWED THE FOLLOWING COMPLETE

MONTHLy OPERAT|NG REPORT (MOR), CONSISTING OF MOR-1 THROUGH MOR-11, PLUS ALL

ATTACHMENTS, AND AFTER MAKING REASONABLE INQUIRY, BELIEVE THESE ARE TRUE AND

CORRECT.

L"tA þSigned Title: Trusteeature)

Douqlas A. Kelley Date

The above summary and attached pages are based on Debtor's books and records, the completeness,

validity and accuracy of which is in question. This information is compiled from various sources and

represents a good faith estimate. Based on information uncovered during the related federalfraud

investigation, the market value of all assets, and the likelihood receivables will be collected, has been called

into question and may ultimately be zero.

I I

DOCS-#2795 584-v6l -Petters_Monthly_Operating_Report-PCLXLS (Debtor-Trustee's Cerlification)


Petters Bankruptcy Monthly Operating Report

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Transcript of Petters Bankruptcy Monthly Operating Report