<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
__________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) April 16, 1999
-------------------------------
SMARTALK TELESERVICES, INC.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
California 0-21579 95-4502740
- ---------------------------- ---------------- ----------------------
(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
5080 Tuttle Crossing Boulevard, Dublin, Ohio 43016-3566
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
The Company's telephone number, including area code (614) 789-8600
-----------------------------
No change
- --------------------------------------------------------------------------------
(Former Name or Address, if Changed Since Last Report)
<PAGE>
ITEM 5. OTHER EVENTS
As previously disclosed in a Current Report on Form 8-K, on January 19,
1999, SmarTalk TeleServices, Inc. and certain of its non-foreign subsidiaries
(collectively, the "Company") filed a voluntary petition for relief under
Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") in the
United States Bankruptcy Court for the District of Delaware (the "Bankruptcy
Court") (Cases Nos. 99-108 to 99-127).
Pursuant to Bankruptcy Rule 2015 and the United States Trustee's Operating
Guidelines and Reporting Requirements for Chapter 11 cases, on April 16, 1999
the Company filed its Monthly Operating Report for the month ending February 28,
1999, for the period of January 20, 1999 through February 28, 1999 (the
"February MOR") with the Office of the United States Trustee -Region 3 and the
Bankruptcy Court.
A copy of the February MOR is attached hereto as Exhibit 99.1, and
incorporated herein by reference./1/
ITEM 7. EXHIBITS
Exhibit No. Description
- ---------- -----------
99.1 Monthly Operating Report for the month ending February 28, 1999,
for the period of January 20, 1999 through February 28, 1999
- ----------------------
/1/ The attachments and exhibits referenced in the February MOR are not
attached as part of Exhibit 99.1, but are available at the Office of the United
States Trustee and the Bankruptcy Court. In addition, the Company agrees that
it will furnish a copy of any omitted schedule or similar attachment to the
Commission upon its request.
(Page 2 of 4 Pages)
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SMARTALK TELESERVICES, INC.
Date: April 23, 1999 By: /s/ Thaddeus Bereday
------------------------------
Name: Thaddeus Bereday
Title: Vice President and General Counsel
(Page 3 of 4 Pages)
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Description
- ---------- -----------
99.1 Monthly Operating Report for the month ending February 28, 1999,
for the period of January 20, 1999 through February 28, 1999
(Page 4 of 4 Pages)
<PAGE>
EXHIBIT 99.1
------------
<TABLE>
<CAPTION>
<S> <C>
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS -1
---------------------------------------------------------------
---------------------------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW)
---------------------------------------------------------------
---------------------------------------------------------------
JUDGE: Honorable Mary F. Walrath
---------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
CONSOLIDATED MONTHLY OPERATING REPORT
FOR THE MONTH ENDING: February 28, 1999
FOR THE PERIOD: January 20, 1999 through February 28, 1999
==========================================================================================
Document Previously Explanation
Required Attachments Attached Submitted Attached
<S> <C> <C> <C>
1. Tax Receipts (X) (_) (_)
2. Bank Statements (X) (_) (_)
3. Most recently filed Income Tax (_) (X) (_)
Return
4. Most recent Annual Financial (_) (X) (_)
Statements prepared by accountant
NOTE: THIS CONSOLIDATED MONTHLY OPERATING REPORT IS FILED ON A CONSOLIDATED
BASIS FOR EACH OF THE 20 ENTITIES THAT IS A DEBTOR-IN-POSSESSION IN THE
ABOVE CAPTIONED CASES. INFORMATION, WHERE INDICATED, IS PROVIDED HEREIN
WITH RESPECT TO NON-DEBTOR SUBSIDIARIES. THIS INFORMATION IS PROVIDED FOR
INFORMATIONAL PURPOSES ONLY ON A BASIS CONSISTENT WITH THE DEBTORS PRIOR
PUBLIC FINANCIAL REPORTING.
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I
DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY
OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-9) AND THE
ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS
ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF PREPARER (OTHER THAN
RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY
KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ Thaddeus Bereday Vice President & General Counsel
------------------------------------------------------- --------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Thaddeus Bereday 4/15/99
------------------------------------------------------- --------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Former Assistant Controller,
/s/ Lois Mannon SmarTalk Teleservices, Inc.
------------------------------------------------------- -------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Lois Mannon 4/15/99
------------------------------------------------------- -------------------------------
PRINTED NAME OF PREPARER DATE
All Chapter 11 debtors must file this report with the Court and serve a copy on the United States Trustee
no later the 15th day of the month following the end of the month covered by the report.
</TABLE>
<PAGE>
----------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 2
----------------------------------------------
----------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW)
----------------------------------------------
<TABLE>
<CAPTION>
----------------------------------------------
COMPARATIVE BALANCE SHEET FIRST QUARTER
-----
---------------------------------------------------------------------------------------------
MONTH MONTH MONTH
------------------------------------------
<S> <C> <C> <C>
ASSETS
---------------------------------------------------------------------------------------------
UNRESTRICTED CASH
---------------------------------------------------------------------------------------------
RESTRICTED CASH SEE ATTACHED BALANCE SHEET
---------------------------------------------------------------------------------------------
1. TOTAL CASH
---------------------------------------------------------------------------------------------
2. ACCOUNTS RECEIVABLE (NET)
---------------------------------------------------------------------------------------------
3. INVENTORY
---------------------------------------------------------------------------------------------
4. NOTES RECEIVABLE
---------------------------------------------------------------------------------------------
5. PREPAID EXPENSES
---------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST)
---------------------------------------------------------------------------------------------
7. TOTAL CURRENT ASSETS
=============================================================================================
8. PROPERTY, PLANT & EQUIPMENT
---------------------------------------------------------------------------------------------
9. LESS: ACCUMULATED
DEPRECIATION / DEPLETION
---------------------------------------------------------------------------------------------
10. NET PROPERTY, PLANT &
EQUIPMENT
---------------------------------------------------------------------------------------------
11. DUE FROM AFFILIATES & INSIDERS
---------------------------------------------------------------------------------------------
AMORTIZATION (ATTACH LIST)
---------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST)
---------------------------------------------------------------------------------------------
14. TOTAL ASSETS
---------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
---------------------------------------------------------------------------------------------
15. ACCOUNTS PAYABLE
---------------------------------------------------------------------------------------------
16. TAXES PAYABLE
---------------------------------------------------------------------------------------------
17. NOTES PAYABLE
---------------------------------------------------------------------------------------------
18. PROFESSIONAL FEES
---------------------------------------------------------------------------------------------
19. SECURED DEBT
---------------------------------------------------------------------------------------------
20. DUE TO AFFILIATES & INSIDERS
---------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST)
---------------------------------------------------------------------------------------------
22. TOTAL POSTPETITION
LIABILITIES
PREPETITION LIABILITIES
=============================================================================================
23. SECURED DEBT
---------------------------------------------------------------------------------------------
24. PRIORITY DEBT
---------------------------------------------------------------------------------------------
25. UNSECURED DEBT
---------------------------------------------------------------------------------------------
26. OTHER (ATTACH LIST)
---------------------------------------------------------------------------------------------
27. TOTAL PREPETITION LIABILITIES
---------------------------------------------------------------------------------------------
28. TOTAL LIABILITIES
=============================================================================================
EQUITY
---------------------------------------------------------------------------------------------
29. PREPETITION OWNERS' EQUITY
---------------------------------------------------------------------------------------------
30. POSTPETITION CUMULATIVE
PROFIT OR (LOSS)
---------------------------------------------------------------------------------------------
DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
---------------------------------------------------------------------------------------------
31. TOTAL EQUITY
---------------------------------------------------------------------------------------------
32. TOTAL LIABILITIES &
OWNERS' EQUITY
---------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SMARTALK TELESERVICES, INC. AND SUBSIDIARIES
DEBTORS-IN-POSSESSION
CONSOLIDATING BALANCE SHEET
As of: FEBRUARY 28, 1999
NOTE: THE FOLLOWING ARE PRELIMINARY FINANCIAL STATEMENTS. A NUMBER OF ESTIMATES
ARE USED IN THE PREPARATION OF THESE FINANCIAL STATEMENTS. ACTUAL FINAL RESULTS
COULD DIFFER MATERIALLY FROM THOSE PRESENTED. THESE ESTIMATED RESULTS DO NOT
REFLECT ANY LOSS THAT MAY BE RECORDED FROM THE SALE OF SUBSTANTIALLY ALL OF THE
DEBTORS' AND NON-DEBTORS' ASSETS TO AT&T CORPORATION AS OF MARCH 31, 1999.
<TABLE>
<CAPTION>
NON-DEBTOR SUBSIDIARIES
(Provided for informational purposes
only on a basis consistent with Debtors
previous public financial reporting)
FEBRUARY
SMTK SMTK 1999
SMTK CANADA UK TOTAL DEBTORS &
DEBTORS NON - DEBTOR NON - DEBTOR NON - DEBTORS
Assets ----------------- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Current Assets:
Cash 655,804 860,145 137,784 1,653,733
Accounts Receivable 38,220,078 1,766,098 285,266 40,271,442
Allowance for doubtful accounts (13,740,226) (151,730) (13,891,956)
Notes Receivable 4,583,112 9,839 4,592,951
Inventory 7,456,697 185,263 102,770 7,744,730
Prepaid Expenses 1,957,714 118,007 151,423 2,227,144
Other Current Assets 1,257,092 4,592 1,261,684
----------------- ----------------------------------------------------------
Total Current Assets 40,390,271 2,792,214 677,243 43,859,728
Non Current:
Property and equipment, net 15,481,080 234,338 598,078 16,313,496
Intangibles, net 286,869,079 11,692,046 1,837,295 300,398,420
Other non-current assets 4,431,729 75,888 (2,701) 4,504,916
----------------- ----------------------------------------------------------
Total Non Current 306,781,889 12,002,272 2,432,672 321,216,833
----------------- ----------------------------------------------------------
Total Assets 347,172,160 14,794,486 3,109,915 365,076,561
================= ==========================================================
Liabilities and Equity
Current Liabilities:
Post-Petition Accounts Payable (186,318) 2,314,822 752,917 2,881,421
Deferred Revenue 22,269,147 1,154,509 690,262 24,113,918
Excise & Sales Tax Payable 361,853 63,159 27,323 452,335
Accrued Marketing Cost 643,702 48,257 - 691,959
Other Accrued 989,862 739,907 230,367 1,960,136
Accrued Interest 4,368,942 4,368,942
Note Payable 4,297,998 4,297,998
Leases Payable (Current) 112,826 112,826
----------------- ----------------------------------------------------------
Total Current Liabilities 32,858,011 4,320,654 1,700,869 38,879,534
Pre-Petition Accounts Payable 59,246,867 59,246,867
Pre-Petition Excise &
Sales Tax Payable 2,465,777 2,465,777
Pre-Petition Other Accrued 19,066,785 19,066,785
Pre-Petition Fletcher Line of Credit 10,000,000 10,000,000
Long Term Debt 150,848,694 33,449 150,882,143
Intercompany Payable (15,539,968) 11,556,354 3,983,613 (0)
----------------- ----------------------------------------------------------
Total Long Term Liabilities 226,088,155 11,556,354 4,017,062 241,661,571
Total Liabilities 258,946,166 15,877,008 5,717,931 280,541,105
Shareholder Equity ( Deficit):
Common Stock 278,227,664 278,227,664
Accumulated Deficit (170,651,501) (1,123,440) (2,571,861) (174,346,802)
Total Shareholders Equity 107,576,164 (1,123,440) (2,571,861) 103,880,863
Cumulative translation adjustment - 206,756 163,011 369,767
Net Loss 1/1/99 - 1/19/99 (6,913,389) (84,031) (52,022) (7,049,442)
Net Loss 1/20/99 - 2/28/99 (12,436,781) (81,807) (147,144) (12,665,732)
----------------- ----------------------------------------------------------
Total Net Loss 1/1/99 - 2/28/99 (19,350,170) (165,838) (199,166) (19,715,174)
Total Liabilities and Equity 347,172,160 14,794,486 3,109,915 365,076,561
================= ==========================================================
</TABLE>
<PAGE>
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 3
-------------------------------------------
-------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW) FIRST QUARTER
-------------------------------------------
<TABLE>
<CAPTION>
INCOME STATEMENT
--------------------------------------
MONTH MONTH MONTH QUARTER
------------------------------------------ TOTAL
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
REVENUES
---------------------------------------------------------------------------------------------------
1. GROSS REVENUES
---------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS SEE ATTACHED INCOME STATEMENT
---------------------------------------------------------------------------------------------------
3. NET REVENUE
---------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
---------------------------------------------------------------------------------------------------
4. BEGINNING INVENTORY
---------------------------------------------------------------------------------------------------
5. ADD: PURCHASES
---------------------------------------------------------------------------------------------------
6. LESS: ENDING INVENTORY
---------------------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD
---------------------------------------------------------------------------------------------------
8. GROSS PROFIT
---------------------------------------------------------------------------------------------------
OPERATING EXPENSES
---------------------------------------------------------------------------------------------------
9. OFFICER / INSIDER COMPENSATION
---------------------------------------------------------------------------------------------------
10. DIRECT LABOR / SALARIES
---------------------------------------------------------------------------------------------------
11. PAYROLL TAXES
---------------------------------------------------------------------------------------------------
12. RENT & LEASE EXPENSE
---------------------------------------------------------------------------------------------------
13. INSURANCE
---------------------------------------------------------------------------------------------------
14. DEPRECIATION / DEPLETION / AMORTIZATION
---------------------------------------------------------------------------------------------------
15. GENERAL & ADMINISTRATIVE
---------------------------------------------------------------------------------------------------
16. OTHER (ATTACH LIST)
---------------------------------------------------------------------------------------------------
17. TOTAL OPERATING EXPENSES
---------------------------------------------------------------------------------------------------
18. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE
---------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
---------------------------------------------------------------------------------------------------
19. NON-OPERATING INCOME (ATT. LIST)
---------------------------------------------------------------------------------------------------
20. NON-OPERATING EXPENSE (ATT. LIST)
---------------------------------------------------------------------------------------------------
21. INTEREST EXPENSE
---------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST)
---------------------------------------------------------------------------------------------------
23. NET OTHER INCOME & EXPENSES
---------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
---------------------------------------------------------------------------------------------------
24. PROFESSIONAL FEES
---------------------------------------------------------------------------------------------------
25. U.S. TRUSTEE FEES
---------------------------------------------------------------------------------------------------
26. OTHER (ATTACH LIST)
---------------------------------------------------------------------------------------------------
27. TOTAL REORGANIZATION EXPENSES
---------------------------------------------------------------------------------------------------
28. INCOME TAX
---------------------------------------------------------------------------------------------------
29. NET PROFIT (LOSS)
---------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SMARTALK TELESERVICES, INC. AND SUBSIDIARIES
DEBTORS-IN-POSSESSION
CONSOLIDATING INCOME STATEMENT
For The Period JANUARY 20 - FEBRUARY 28, 1999
NOTE: THE FOLLOWING ARE PRELIMINARY FINANCIAL STATEMENTS. A NUMBER OF ESTIMATES
ARE USED IN THE PREPARATION OF THESE FINANCIAL STATEMENTS. ACTUAL FINAL RESULTS
COULD DIFFER MATERIALLY FROM THOSE PRESENTED. THESE ESTIMATED RESULTS DO NOT
REFLECT ANY LOSS THAT MAY BE RECORDED FROM THE SALE OF SUBSTANTIALLY ALL OF THE
DEBTORS' AND NON-DEBTORS' ASSETS TO AT&T CORPORATION AS OF MARCH 31, 1999.
<TABLE>
<CAPTION>
NON-DEBTOR SUBSIDIARIES
(Provided for informational purposes
only on a basis consistent with Debtors'
previous public financial reporting)
TOTAL
SMTK SMTK DEBTORS &
SMTK DEBTORS CANADA UK NON-DEBTORS
1/20/99 - 2/28/99 1/20/99 - 2/28/99 1/20/99 - 2/28/99 1/20/99 - 2/28/99
----------------- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue 14,744,424 721,962 147,503 15,613,889
Cost of revenue 18,578,466 483,779 112,251 19,174,497
----------- --------------------------------------------------------------------------
Gross profit (loss) (3,834,042) 238,182 35,252 (3,560,608)
Sales and marketing 706,100 25,282 26,961 758,342
General and administrative 2,201,473 214,335 103,789 2,519,597
Depreciation and amortizat 4,550,595 81,701 48,636 4,680,933
----------- --------------------------------------------------------------------------
Operating loss (11,292,210) (83,136) (144,134) (11,519,479)
Interest expense 1,152,647 3,010 1,155,657
Interest income (8,076) (1,329) (9,405)
----------- --------------------------------------------------------------------------
Net Loss (12,436,781) (81,807) (147,144) (12,665,732)
=========== ==========================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------- ACCRUAL BASIS -4
DEBTORS: WORLDWIDE DIRECT, INC., et al. FIRST QUARTER
- ------------------------------------------------------------------------------- -----
Bank: Wells Fargo
- ------------------------------------------------------------------------------- -----------
CASE NUMBERS: 99-108 to 99-127 (MFW) Account no.: 4038-145157
- ------------------------------------------------------------------------------- -----------
Account type:Operating
---------
CASH RECEIPTS AND MONTH
-----------------
DISBURSEMENTS 1/20/99 - 2/28/99
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------------
1. CASH - BEGINNING OF MONTH $ -
- -------------------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
- -------------------------------------------------------------------------------------------------------------
2. CASH SALES (FROM MERCHANT CARD RECHARGES) $ 320,826
- -------------------------------------------------------------------------------------------------------------
3. COLLECTION OF ACCOUNTS RECEIVABLE $ 903,450
- -------------------------------------------------------------------------------------------------------------
4. LOANS & ADVANCES $ -
- -------------------------------------------------------------------------------------------------------------
5. SALE OF ASSETS $ -
- -------------------------------------------------------------------------------------------------------------
6. OTHER:
- -------------------------------------------------------------------------------------------------------------
LOCKBOX COLLECTIONS ON RECEIVABLES 1/20/99-1/31/99 $ 9,682,853
- -------------------------------------------------------------------------------------------------------------
LOCKBOX COLLECTIONS ON RECEIVABLES 2/1/99-2/28/99 $ 3,451,200
- -------------------------------------------------------------------------------------------------------------
TRANSFERS IN FROM SWEEP ACCOUNT 1/20/99-1/31/99* $ 151,573
- -------------------------------------------------------------------------------------------------------------
TRANSFERS IN FROM SWEEP ACCOUNT 2/1/99-2/28/99* $ 9,940,562
- -------------------------------------------------------------------------------------------------------------
VENDING DEPOSIT RECEIPTS $ 6,685
- -------------------------------------------------------------------------------------------------------------
DIVIDEND INCOME RECEIPTS $ 7,537
- -------------------------------------------------------------------------------------------------------------
TOTAL OTHER $ 23,240,410
- -------------------------------------------------------------------------------------------------------------
7. TOTAL RECEIPTS $ 24,464,686
- -------------------------------------------------------------------------------------------------------------
8. TOTAL CASH AVAILABLE $ 24,464,686
- -------------------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
- -------------------------------------------------------------------------------------------------------------
1. CHECKS WRITTEN - 1/20/99-1/31/99 (SEE ATTACHED LIST) $ 355,061
- -------------------------------------------------------------------------------------------------------------
2. CHECKS WRITTEN - 2/1/99-2/28/99 (SEE ATTACHED LIST) $ 1,210,160
- -------------------------------------------------------------------------------------------------------------
3. WIRE TRANSFERS - 1/20/99-1/31/99 (SEE ATTACHED LIST) $ 1,929,730
- -------------------------------------------------------------------------------------------------------------
4. WIRE TRANSFERS - 2/1/99-2/28/99 (SEE ATTACHED LIST) $ 9,957,540
- -------------------------------------------------------------------------------------------------------------
5. OTHER:
- -------------------------------------------------------------------------------------------------------------
CUSTOMER REFUNDS (MERCHANT CARD RETURNS) $ 14,889
- -------------------------------------------------------------------------------------------------------------
CASH TRANSFERS OUT TO PAYROLL ACCOUNT 1/20/99-1/31/99 $ 623,786
- -------------------------------------------------------------------------------------------------------------
CASH TRANSFERS OUT TO PAYROLL ACCOUNT 2/1/99-2/28/99 $ 867,325
- -------------------------------------------------------------------------------------------------------------
CASH TRANSFERS OUT - 1/20/99-1/31/99* $ 6,453,295
- -------------------------------------------------------------------------------------------------------------
CASH TRANSFERS OUT - 2/1/99-2/28/99* $ 3,056,637
- -------------------------------------------------------------------------------------------------------------
A/R RETURNS ADJUSTMENT $ 99,747
- -------------------------------------------------------------------------------------------------------------
BANK CHARGES $ 358
- -------------------------------------------------------------------------------------------------------------
TOTAL OTHER $ 11,116,037
- -------------------------------------------------------------------------------------------------------------
-------------------------------------------
- -------------------------------------------------------------------------------------------------------------
TOTAL DISBURSEMENTS FROM BANK ACCOUNT $ 24,568,528
- -------------------------------------------------------------------------------------------------------------
ENDING ACCOUNT BALANCE $ (103,842)
- -------------------------------------------------------------------------------------------------------------
ADD: CASH BALANCES FROM NON-OPERATING ACCOUNTS $ 759,646
- -------------------------------------------------------------------------------------------------------------
SEE ACCRUAL BASIS - 6
- -------------------------------------------------------------------------------------------------------------
ADD: TOTAL NON-DEBTOR CASH BALANCES $ 997,929
- -------------------------------------------------------------------------------------------------------------
NON-DEBTOR SUBSIDIARIES (Provided for informational
- -------------------------------------------------------------------------------------------------------------
purposes only on a basis consistent with Debtors' previous
- -------------------------------------------------------------------------------------------------------------
public financial reporting) SEE ACCRUAL BASIS - 6
- -------------------------------------------------------------------------------------------------------------
END OF MONTH BALANCE (SHOULD EQUAL ACCRUAL BASIS - 6, LINE 13) $ 1,653,734
- -------------------------------------------------------------------------------------------------------------
* CASH TRANSFERS line items represent inter-account transfers to other SMTK accounts including overnight sweep
accounts.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ----------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC., et al ACCRUAL BASIS - 5
- ----------------------------------------------
- ----------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW)
- ---------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
ACCOUNTS RECEIVABLE AGING 1/20/99 - 2/28/99
- ----------------------------------------------------------------------------------------------------------------------------------
1. 0 - 30 days old $ 10,955,459
- ----------------------------------------------------------------------------------------------------------------------------------
2. 31 - 60 days old 5,319,837
- ----------------------------------------------------------------------------------------------------------------------------------
3. 61 - 90 days old 7,718,819
- ----------------------------------------------------------------------------------------------------------------------------------
4. 91 + days old 14,225,963
- ----------------------------------------------------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE 38,220,078
- ----------------------------------------------------------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTIBLE 13,740,226
- ----------------------------------------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE (NET) $ 24,279,852
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------- MONTH: January 20 - February 28, 1999
-------------------------------
AGING OF POSTPETITION ACCOUNTS PAYABLE
- ----------------------------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+ TOTAL
DAYS DAYS DAYS DAYS
- ----------------------------------------------------------------------------------------------------------------------------------
ACCOUNTS PAYABLE $ (377,775) $ 191,457 $ - $ - $ (186,318)
- ----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------
STATUS OF POSTPETITION TAXES MONTH: January 20 - February 28, 1999
------------------------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX DELINQUENT
FEDERAL LIABILITY* OR ACCRUED PAID LIABILITY TAXES
1. WITHHOLDING** $ - $ 341,774 $ 291,229 $ 50,545 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
2. FICA-EMPLOYEE** $ - $ 128,183 $ 104,670 $ 23,513 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
3. FICA-EMPLOYER** $ - $ 128,183 $ 104,670 $ 23,513 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $ - $ 6,406 $ 5,800 $ 607 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
5. INCOME $ - $ - $ - $ - $ -
- ---------------------------------------------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST) $ - $ - $ - $ - $ -
- ---------------------------------------------------------------------------------------------------------------------------------
7. TOTAL FEDERAL TAXES $ - $ 604,545 $ 506,369 $ 98,176 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
- ---------------------------------------------------------------------------------------------------------------------------------
8. WITHHOLDING $ - $ 84,218 $ 67,468 $ 16,750 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
9. SALES $ - $ 123,541 $ 33,706 $ 89,835 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
10. EXCISE $ - $ 251,194 $ - $ 251,194 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
11. UNEMPLOYMENT $ - $ 31,460 $ 27,463 $ 3,997 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
12. REAL PROPERTY $ - $ - $ - $ - $ -
- ---------------------------------------------------------------------------------------------------------------------------------
13. PERSONAL PROPERTY $ - $ $ - $ - $ -
- ---------------------------------------------------------------------------------------------------------------------------------
14. OTHER-STATE DISABILITY $ - $ 499 $ 422 $ 77 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
15. TOTAL STATE & LOCAL $ - $ 490,912 $ 129,059 $ 361,853 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
16. TOTAL TAXES $ - $ 1,095,456 $ 635,427 $ 460,029 $ -
- ---------------------------------------------------------------------------------------------------------------------------------
* 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 payment or deposit.
NOTE: Withholdings are processed and remitted directly by Automatic Data Processing (ADP) a third party payroll processor.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 6
- -------------------------------------------------
- -------------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW)
- -------------------------------------------------
The debtor in possession must complete the reconciliation below for each bank account,
including all general, payroll and tax accounts, as well as all savings and investment
accounts, money market accounts, certificates of deposit, government obligations, etc.
Accounts with restricted funds should be identified by placing an asterisk next to the
account number. Attach additional sheets if necessary.
<S> <C> <C> <C> <C>
MONTH: January 20, 1999 - February 28, 1999
-------------------------------------------
BANK RECONCILIATIONS
Account #1 Account #2 Account #3
- ----------------------------------------------------------------------------------------------------------------------------------
A. BANK:
- ------------------------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: TOTAL
- -------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE):
- ----------------------------------------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT
- ----------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED SEE ATTACHED BANK RECONCILIATIONS WITH
- ----------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS SUPPORTING BANK STATEMENTS AND G/L DETAIL
- ----------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS (ATTACH LIST)
- ----------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS
- ----------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------
INVESTMENT ACCOUNTS
- ----------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
7.
- ----------------------------------------------------------------------------------------------------------------------------------
8.
- ----------------------------------------------------------------------------------------------------------------------------------
9.
- ----------------------------------------------------------------------------------------------------------------------------------
10.
- ----------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------
CASH
- ---------------------------------------
12. CURRENCY ON HAND
- ----------------------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DEBTORS: WORLDWIDE DIRECT, INC. et al ACCRUAL BASIS - 6
--------------------------------------------------------------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW)
--------------------------------------------------------------------------------------------------
The debtor in possession must complete the reconciliation below for each bank account,
including all general, payroll and tax accounts, as well as all savings and investment
accounts, money market accounts, certificates of deposit, government obligations, etc.
Accounts with restricted funds should be identified by placing an asterisk next to the
account number. Attach additional sheets if necessary.
MONTH: January 20, 1999 - February 28, 1999
----------------------------------------------
BANK RECONCILIATIONS
Account #1 Account #2 Account #3 Account #4
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A. BANK: Wells Fargo Wells Fargo Wells Fargo Wells Fargo
--------------------------------------------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 4091-382796 4091-382853 4091-382812 4311-782163
--------------------------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Payroll (SMTK) Payroll (Promo) Payroll (GTI) Paryoll (Fmtr)
--------------------------------------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT - - - -
--------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED - - - -
--------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS (15,807) - (5,968) -
--------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS (ATTACH LIST) - - - -
--------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS (15,807) - (5,968) -
--------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN
--------------------------------------------------------------------------------------------------------------------------------
BANK RECONCILIATIONS
Account #5 Account #6 Account #7 Account #8
---------------------------------------------------------------------------------------------------------------------------------
A. BANK: Wells Fargo Wells Fargo Wells Fargo Wells Fargo
---------------------------------------------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 4311-781165 4091-382846 4091-382770 4311-781405
---------------------------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Payroll (CQ) Lockbox (Promo) Lockbox (GTI) Lockbox (Fmtr)
---------------------------------------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT - - - -
---------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED - - - -
---------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS (16,918) - - -
---------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS (ATTACH LIST) - - - -
---------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS (16,918) - - -
---------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN
---------------------------------------------------------------------------------------------------------------------------------
BANK RECONCILIATIONS
Account #9 Account #10 Account #11 Account #12
----------------------------------------------------------------------------------------------------------------------------------
A. BANK: Wells Fargo Wells Fargo Wells Fargo Wells Fargo
----------------------------------------------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 4038-145272 4038-145231 4038-145199 4311-781082
----------------------------------------------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Direct Cust. Svc. Direct Merchant Lockbox (Direct) Lockbox (CQ)
----------------------------------------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT - - 4,828 -
----------------------------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED - - - -
----------------------------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS - - - -
----------------------------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS (ATTACH LIST) - - - -
----------------------------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS - - 4,828 -
----------------------------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
ACCRUAL BASIS - 6
- ---------------------------------------------------------------------------------------------------------------
Account #13 Account #14 Account #15 Account #16 Account #17 Account #18 Account #19
- ---------------------------------------------------------------------------------------------------------------
Wells Fargo FNBO I - Bank Nations Bank Wells Fargo Wells Fargo Firstar
- ---------------------------------------------------------------------------------------------------------------
4311-781124 384011304 301-0005659 0039 3394 3655 4091-382788 4091-390351 48646-8317
- ---------------------------------------------------------------------------------------------------------------
PPD Lockbx CQ Merchant Card Vending Vending Lockbox (SMTK) Merchant Card Commissions
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- 364,360 14,342 48,464 - - -
- ---------------------------------------------------------------------------------------------------------------
- - - - - - -
- ---------------------------------------------------------------------------------------------------------------
- - - - - - -
- ---------------------------------------------------------------------------------------------------------------
- - - - - - -
- ---------------------------------------------------------------------------------------------------------------
- 364,360 14,342 48,464 - - -
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Account #20 Account #21 Account #22 Account #23 Account #24 Account #25 Account #26
- ---------------------------------------------------------------------------------------------------------------
Firstar So. Cal. Bank Firstar Firstar Firstar Wells Fargo Wells Fargo
- ---------------------------------------------------------------------------------------------------------------
48887-2631 4124294 48894-0438 98024-6078 48894-0446 4038-145157 4417-843075
- ---------------------------------------------------------------------------------------------------------------
Stock option Operating Operating Sweep Lockbox (SMTK) Operating Sweep (Direct)
- ---------------------------------------------------------------------------------------------------------------
3,372 20 2,930 5,029 2,084 (103,841) 340,234
- ---------------------------------------------------------------------------------------------------------------
- - - - - - -
- ---------------------------------------------------------------------------------------------------------------
- - - - - - -
- ---------------------------------------------------------------------------------------------------------------
- - - - - - -
- ---------------------------------------------------------------------------------------------------------------
3,372 20 2,930 5,029 2,084 (103,841) 340,234
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
NON-DEBTOR SUBSIDIARIES
(Provided for informational purposes
only on a basis consistant with Debtors'
previous financial reporting)
- ---------------------------------------------------
Non - debtor Non - debtor
- ---------------------------------------------------
Cash Cash TOTAL
- ---------------------------------------------------
Canada UK
- ---------------------------------------------------
860,145 137,784 1,679,750
- ---------------------------------------------------
-
- ---------------------------------------------------
(38,692)
- ---------------------------------------------------
-
- ---------------------------------------------------
860,145 137,784 1,641,058
- ---------------------------------------------------
- ---------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC. et al ACCRUAL BASIS - 6
- ---------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC. et al
- ---------------------------------------------
The debtor in possession must complete the reconciliation below for each bank account,
including all general, payroll and tax accounts, as well as all savings and investment
accounts, money market accounts, certificates of deposit, government obligations, etc.
Accounts with restricted funds should be identified by placing an asterisk next to the
account number. Attach additional sheets if necessary.
MONTH: January 20, 1999 - February 28, 1999
----------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------
INVESTMENT ACCOUNTS
- ----------------------------------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
7. SUNTRUST COLLATERAL Acct #: 236000923 & 236000924 US T-Bills - -
- ----------------------------------------------------------------------------------------------------------------------------------
8. US BANK CORPORATE TRUST - Escrow Acct #: 98501430 Jul-98 Treasury Obligations 12,043 12,676
- ----------------------------------------------------------------------------------------------------------------------------------
9.
- ----------------------------------------------------------------------------------------------------------------------------------
10.
- ----------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS 12,676
- ----------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------
CASH
- ----------------------------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND -
- ----------------------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH 1,653,733
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 7
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW)
- ----------------------------------------------------------------------------------------------
MONTH: January 20, 1999 - February 28, 1999
------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
- ----------------------------------------------------------------------------------------------------------------------------------
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID
TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE)
AND TO PROFESSIONALS. FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF
COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE,
TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.
INSIDERS
- -----------------------------------------------------------------------------------------------------------------------------------
CUMULATIVE
TYPE OF AMOUNT UNPAID
NAME POSITION PAYMENT PAID BALANCE
- ----------------------------------------------------------------------------------------------------------------------------------
1. Bereday, Thaddeus Vice President, General Counsel, Asst. Sec. Wages, Expenses $ 20,880
- ----------------------------------------------------------------------------------------------------------------------------------
2. Borocz, Joe SmarTalk Senior Vice Pres. Of Marketing Wages, Expenses 20,507
- ----------------------------------------------------------------------------------------------------------------------------------
3. Fess, Michelle President, SmarTalk UK Ltd. Wages 7,269
- ----------------------------------------------------------------------------------------------------------------------------------
4. Grillo, Mark Relative of insider Victor Grillo, Jr & employee Wages 5,192
- ----------------------------------------------------------------------------------------------------------------------------------
5. Grillo, Victor, Jr. President, SmarTalk Direct Wages, Expenses 26,693
- ----------------------------------------------------------------------------------------------------------------------------------
6. Hamburger, David Former SmarTalk General Counsel Return excess contributions 1,797
- ----------------------------------------------------------------------------------------------------------------------------------
7. Lorsch, Robert SmarTalk Director Expense reimbursement 12,404
- ----------------------------------------------------------------------------------------------------------------------------------
8. Spangenberg, Erich Former SmarTalk CEO Wages, Vacation payout, exp. 50,609
- ----------------------------------------------------------------------------------------------------------------------------------
9. Teich, Richard Former SmarTalk employee Return excess contributions 804
- ----------------------------------------------------------------------------------------------------------------------------------
10. Wooddell, Wayne SmarTalk CFO Wages, Expenses 26,402
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL PAYMENTS TO INSIDERS $172,557
- ----------------------------------------------------------------------------------------------------------------------------------
PROFESSIONALS
- ---------------------------------------------------------------------------------------------------------------------------------
TYPE DATE OF COURT
OF ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID
NAME PROFESSIONAL PAYMENT APPROVED PAID TO DATE
- ---------------------------------------------------------------------------------------------------------------------------------
1. NOT APPLICABLE AS THERE WERE NO PAYMENTS MADE TO PROFESSIONALS DURING THE REPORTING PERIOD
- ---------------------------------------------------------------------------------------------------------------------------------
2.
- ---------------------------------------------------------------------------------------------------------------------------------
3.
- ---------------------------------------------------------------------------------------------------------------------------------
4.
- ---------------------------------------------------------------------------------------------------------------------------------
5.
- ---------------------------------------------------------------------------------------------------------------------------------
6. TOTAL PAYMENTS TO PROFESSIONALS
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
ADEQUATE PROTECTION PAYMENTS
- ---------------------------------------------------------------------------------------------------------------------------------
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
- ---------------------------------------------------------------------------------------------------------------------------------
1. NOT APPLICABLE DURING THE CURRENT REPORTING PERIOD
- ---------------------------------------------------------------------------------------------------------------------------------
2.
- ---------------------------------------------------------------------------------------------------------------------------------
3.
- ---------------------------------------------------------------------------------------------------------------------------------
4.
- ---------------------------------------------------------------------------------------------------------------------------------
5.
- ---------------------------------------------------------------------------------------------------------------------------------
6.
- ---------------------------------------------------------------------------------------------------------------------------------
7.
- ---------------------------------------------------------------------------------------------------------------------------------
8.
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
- ----------------------------------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 8
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW)
- ----------------------------------------------------------------------
MONTH: January 20, 1999 - February 28, 1999
------------------------------------
- ----------------------------------------------------------------------
QUESTIONNAIRE
- ----------------------------------------------------------------------
YES NO
- ------------------------------------------------------------------------------------------------------------------------------------
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS DURING THIS REPORTING PERIOD? X
- ------------------------------------------------------------------------------------------------------------------------------------
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
OTHER THAN A DEBTOR IN POSSESSION ACCOUNT? X
- ------------------------------------------------------------------------------------------------------------------------------------
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR
LOANS) DUE FROM RELATED PARTIES? X
- ------------------------------------------------------------------------------------------------------------------------------------
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
THIS REPORTING PERIOD? X
- ------------------------------------------------------------------------------------------------------------------------------------
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
DEBTOR FROM ANY PARTY? X
- ------------------------------------------------------------------------------------------------------------------------------------
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
- ------------------------------------------------------------------------------------------------------------------------------------
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
PAST DUE? X
- ------------------------------------------------------------------------------------------------------------------------------------
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
- ------------------------------------------------------------------------------------------------------------------------------------
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
- ------------------------------------------------------------------------------------------------------------------------------------
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS X
- ------------------------------------------------------------------------------------------------------------------------------------
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD? X
- ------------------------------------------------------------------------------------------------------------------------------------
12. ARE ANY WAGE PAYMENTS PAST DUE? X
- ------------------------------------------------------------------------------------------------------------------------------------
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
4. Prepetition earned employee wages and expenses were paid pursuant to bankruptcy order. Also, pursuant to an order of the
- ------------------------------------------------------------------------------------------------------------------------------------
bankruptcy court order, the debtors satisfied obligations on prepaid phonecards sold prior to the petition date.
- ------------------------------------------------------------------------------------------------------------------------------------
10. Pursuant to ordinary course business transactions with creditors in accordance with standard payment terms, certain amounts
- ------------------------------------------------------------------------------------------------------------------------------------
were outstanding.
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------
INSURANCE
- ----------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
YES NO
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
- ------------------------------------------------------------------------------------------------------------------------------------
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
- ------------------------------------------------------------------------------------------------------------------------------------
3. PLEASE ITEMIZE POLICIES BELOW.
- ------------------------------------------------------------------------------------------------------------------------------------
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN
CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION
BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE POLICIES
- ------------------------------------------------------------------------------------------------------------------------------------
TYPE OF PERIOD PAYMENT AMOUNT
POLICY CARRIER COVERED & FREQUENCY
- ------------------------------------------------------------------------------------------------------------------------------------
1. Directors & Officers Liability (A-side) Executive Risk 12/11/98-10/22/99 $150,000 & annual
- ------------------------------------------------------------------------------------------------------------------------------------
2. Directors & Officers Liability (A-side) Reliance Insurance Co. 12/11/98-10/22/99 $105,000 & annual
- ------------------------------------------------------------------------------------------------------------------------------------
3. Business Auto Travelers Group 3/24/98-3/24/99 $8,109 & 10 month install
- ------------------------------------------------------------------------------------------------------------------------------------
4. Boiler & Machinery Travelers Group 3/24/98-3/24/99 $1,500 & annual
- ------------------------------------------------------------------------------------------------------------------------------------
5. Crime Travelers Group 8/6/98-8/6/99 $3,587 & annual
- ------------------------------------------------------------------------------------------------------------------------------------
6. Commercial Umbrella Travelers Group 3/24/98-3/24/99 $7,060 & 10 month install
- ------------------------------------------------------------------------------------------------------------------------------------
7. Endorsements to Umbrella Policy Travelers Group 3/24/98-3/24/99 $2,741 & pre-payment
- ------------------------------------------------------------------------------------------------------------------------------------
8. Kidnap & Ransom Travelers Group 3/24/98-3/24/99 $1,133 & annual
- ------------------------------------------------------------------------------------------------------------------------------------
9. Fiduciary Liability* Travelers Group 3/24/98-3/24/99 $1,002 & annual
- ------------------------------------------------------------------------------------------------------------------------------------
10. Worker's Compensation - Illinois* Wausau 3/24/98-3/24/99 $539 & annual
- ------------------------------------------------------------------------------------------------------------------------------------
11. Worker's Compensation - All Other States* Wausau 3/24/98-3/24/99 $34,860 & 10 month install
- ------------------------------------------------------------------------------------------------------------------------------------
12. Worker's Compensation - Administration Fee* Picton Cavanaugh 3/24/98-3/24/99 $15,000 & 10 month install
- ------------------------------------------------------------------------------------------------------------------------------------
13. Endorsements to Worker's Compensation* Wausau 3/24/98-3/24/99 ($12,570) & pre-payment
- ------------------------------------------------------------------------------------------------------------------------------------
14. Commercial Package Policy Travelers Group 3/24/98-3/24/99 $36,962 & 10 month install
- ------------------------------------------------------------------------------------------------------------------------------------
15. Endorsements to Commercial Package Policy Travelers Group 3/24/98-3/24/99 $643 & pre-payment
- ------------------------------------------------------------------------------------------------------------------------------------
16. Bond Premium Harry Koch 9/25/98-9/25/99 $500 & annual
- ------------------------------------------------------------------------------------------------------------------------------------
* Worker's Compensation and General Liability premiums are based on "estimated" payrolls. Premium adjustments may be made as
actual payrolls are known.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
- ---------------------------------------------------------------------------
DEBTORS: WORLDWIDE DIRECT, INC., et al. ACCRUAL BASIS - 9
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
CASE NUMBERS: 99-108 to 99-127 (MFW)
- ---------------------------------------------------------------------------
MONTH: January 20, 1999 - February 28, 1999
------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
PERSONNEL*
- -------------------------------------------------------------------------------------------------------------------------
FULLTIME PART TIME
- -------------------------------------------------------------------------------------------------------------------------
1. Total number of employees at beginning of period (as of 1/20/99) 180 1
- -------------------------------------------------------------------------------------------------------------------------
2. Number of employees hired during the period 0 0
- -------------------------------------------------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period 12 0
- -------------------------------------------------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period (as of 2/28/99) 168 1
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
* Employees included in personnel are employees of the debtors and, accordingly, employees of non-debtors are excluded.
- -------------------------------------------------------------------------------------------------------------------------
CHANGE OF ADDRESS
- -------------------------------------------------------------------------------------------------------------------------
If your mailing address has changed and you have not previously notified the
DATE of CHANGE: _____________________________-
NEW ADDRESS
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
</TABLE>
