<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIRES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 31,1999
Favorite Brands International, Inc.
and the Guarantors identified in Footnote (1) below
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 333-67221 75-2608980
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(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
2121 Waukegan Road, Bannockburn, Illinois 60015
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(Address of Principal Executive Offices) (Zip Code)
1) The following domestic direct subsidiaries of Favorite Brands International,
Inc. are Guarantors of the Company's Senior Notes and are Co-Registrants, each
of which is incorporated in the jurisdiction and has the I.R.S. Employer
Identification Number indicated: Trolli Inc., a Delaware corporation
(52-1716800) and Sather Trucking Corp., a Delaware corporation (41-1849044).
Registrant's telephone number, including area code: (847) 405-5800
Item 5. Other Events
On August 31, 1999 Favorite Brands International, Inc. (the "Company") filed in
the United States Bankruptcy Court for the District of Delaware the monthly
operating report for its July 1999 fiscal period which is attached hereto as
Exhibit 99.2.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial Statements of Businesses Acquired. Not applicable.
(b) Pro Forma Financial Information. Not applicable.
(c) Exhibits.
99.2 Monthly Operating Report
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Favorite Brands International, Inc.
Dated: September 15, 1999 By: /s/ Steven F. Kaplan
-----------------------------------------------
President, Chief Operating Officer and
Chief Financial Officer
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description of Exhibit
- --------------------------------------------------------------------------------
<S> <C>
99.2 Monthly Operating Report
</TABLE>
<PAGE>
EXHIBIT 99.2
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS
FOR THE PERIOD ENDED JULY 24, 1999
Debtors: Favorite Brands International Holding Corp., Favorite Brands
International, Inc., Trolli Inc., and Sather Trucking Corporation (the
"Debtors") Case Numbers: 99-726 (PJW) through 99-729 (PJW)
As President of the Debtors, I affirm to the best of my knowledge, information
and belief:
1) That I have reviewed the financial statements attached hereto, consisting
of:
[X] Statement of Cash Receipts and Disbursements
[X] Accounts Receivable and Postpetition Accounts Payable Aging
Statements
[X] Statement of Payments to Professionals
and that they have been prepared in accordance with normal and customary
accounting practices, and fairly and accurately reflect the debtors financial
activity for the period stated.
2) That the insurance as described in Section 3 of the Operating Instructions
and Reporting Requirements for Chapter 11 cases are current and have been
paid in the normal course of business.
3) That all postpetition taxes as described in Section 4 of the Operating
Instructions and Reporting Requirements for Chapter 11 cases are current
and have been paid in the normal course of business.
4) That no payments have been made to officers and directors of the Debtors
except as authorized pursuant to orders of the Bankruptcy Court including
the Order Under 11 U.S.C. (S)(S)105,363 and 365 Authorizing (A)
Implementation of Key Employee Retention Program, (B) Implementation of
Severance Program, (C) Modification of Retirement Plans, (D) Assumption of
or Entry Into Certain Employment Agreements With Key Executives, and (E)
Granting Other Relief (approved on April 30, 1999).
5) That no professional fees (attorney, accountant, etc.) have been paid
except as provided in the (1) Order Authorizing Retention of Professionals
by Debtors in the Ordinary Course of Business (entered on March 31, 1999)
or (2) Administrative Order 11 U.S.C. (S)(S)105(a) and 331 Establishing
Procedures for Interim Compensation and Reimbursement of Expenses of
Professionals (entered on March 31, 1999).
The attached monthly report was prepared by the Debtors under my direction and
supervision. The Debtors verify that to the best of its knowledge, the
information provided herein is true and correct.
/s/ Steven F. Kaplan
Dated: _______________ ___________________________________
Debtors in Possession
Steven F. Kaplan
President, Chief Operating Officer,
and Chief Financial Officer
<PAGE>
FAVORITE BRANDS INTERNATIONAL HOLDING CORP.
Statement of Cash Disbursements
For the Period
(Thousands of Dollars)
Debtors: Favorite Brands International Holding Corp., Favorite Brands
International, Inc., Trolli Inc., and Sather Trucking Corporation
(the "Debtors")
Case Numbers: 99-726PJW through 99-729PJW
DISBURSEMENTS DURING PERIOD
(deconsolidated and excluding intradebtor transfers):
Favorite Brands Holding Corp. $ -
Favorite Brands International, Inc. $ 76,483
Trolli Inc. $ 8,473
Sather Trucking Corporation $ 1,378
-----------
Total $ 86,334
===========
<PAGE>
FAVORITE BRANDS INTERNATIONAL HOLDING CORP.
Statement of Cash Receipts and Disbursements
For the Period
(Thousands of Dollars)
Debtors: Favorite Brands International Holding Corp., Favorite Brands
International, Inc., Trolli Inc., and Sather Trucking Corporation
(the "Debtors")
Case Numbers: 99-726PJW through 99-729PJW
Cash Receipts and Disbursements Detail
(consolidated)
<TABLE>
<CAPTION>
Holdings
1st National
BANK NAME: Bank of Chicago
ACCOUNT #: 55-81787
---------------
<S> <C>
Beginning Bank Ledger Balance $ 21
Receipts for Period
Disbursements for Period
---------------
Ending Bank Ledger Balance $ 21
===============
RECONCILIATION TO GENERAL LEDGER
- --------------------------------
Ending Bank Ledger Balance $ 21
Outstanding Checks
Deposits in Transit
Other Reconciling Items
---------------
Total Cash $ 21
===============
Favorite Brands International, Inc.
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FBI FBI FBI FBI FBI FBI
Bank of Bank of Campbell & Chase Kidd Petty Cash
America America Fetter Investment
81887-00953 58552174 50742-6 323-845851
----------- -------- ---------- ---------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Beginning Bank Ledger Balance $ 2,619 $ 46 $ 95 $ 8,551
Receipts for Period 51,159 20 287,570
Disbursements for Period 50,264 44 269,601
--------- -------- --------- --------- ------- ----------
Ending Bank Ledger Balance $ 3,514 $ 2 $ 115 $ 26,520 $ - $ -
========= ======== ========= ========= ======= ==========
RECONCILIATION TO GENERAL LEDGER
- --------------------------------
Ending Bank Ledger Balance $ 3,514 $ 2 $ 115 $ 26,520 $ - $ -
Outstanding Checks 3,198 -
Deposits in Transit - (6)
Other Reconciling Items 2,005 45 (20) 1,184 55
--------- -------- --------- --------- ------- ----------
Total Cash $ 2,321 $ 47 $ 95 $ 27,704 $ (6) $ 55
========= ======== ========= ========= ======= ==========
</TABLE>
<TABLE>
<CAPTION>
Favorite Brands International, Inc.
---------------------------------------------------------------------------------
Farley Farley Farley Farley Farley
Bank of Bank of Bank of Merrill Lynch
BANK NAME: America America America Petty
ACCOUNT #: 8188-4-00945 8765-7-50790 8765-0-60789 626-95S Cash
------------ ------------ ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Beginning Bank Ledger Balance $ 225 $ 6
Receipts for Period $ 27,906 $ 2,482 $ 5,870
Disbursements for Period 27,906 2,482 5,870
------------ ----------- ---------- ------------ -----------
Ending Bank Ledger Balance $ - $ - $ - $ 225 $ 6
============ =========== ========== ============ ===========
RECONCILIATION TO GENERAL LEDGER
- --------------------------------
Ending Bank Ledger Balance $ - $ - $ - $ 225 $ 6
Outstanding Checks 504 1,870
Deposits in Transit
Other Reconciling Items 504 1,870
------------ ----------- ---------- ------------ -----------
Total Cash $ - $ - $ - $ 225 $ 6
============ =========== ========== ============ ===========
</TABLE>
(1) Amounts are held in individual bank accounts specific for each
owner/operators' deposit to Sather Trucking.
<PAGE>
FAVORITE BRANDS INTERNATIONAL HOLDING CORP.
Statement of Cash Receipts and Disbursements
For the Period
(Thousands of Dollars)
Debtors: Favorite Brands International Holding Corp., Favorite Brands
International, Inc., Trolli Inc., and Sather Trucking Corporation
(the "Debtors")
Case Numbers: 99-726PJW through 99-729PJW
Cash Receipts and Disbursements Detail
(consolidated)
<TABLE>
<CAPTION> Favorite Brands International, Inc. Sather Trucking Corporation
------------------------------------------------ ----------------------------------
Sathers Sathers Sathers STC STC
United Prairie United Prairie Norwest United Prairie United Prairie
BANK NAME: Bank Bank Bank Bank
ACCOUNT #: 40619 40897 273-0015886 040037 Various/(1)/
--------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Beginning Bank Ledger Balance $ 177 $ 32 $ (0) $ 98
Receipts for Period 6,972 0 461 1,354
Disbursements for Period 7,014 30 462 1,378
-------------- -------------- -------------- -------------- --------------
Ending Bank Ledger Balance $ 135 $ 2 $ (0) $ 74 $ -
============== ============== ============== ============== ==============
RECONCILIATION TO GENERAL LEDGER
- --------------------------------
Ending Bank Ledger Balance $ 135 $ 2 $ (0) $ 74 $ -
Outstanding Checks 1,503 1 151
Deposits in Transit 1 (1)
Other Reconciling Items 0 0 0
-------------- -------------- -------------- -------------- --------------
Total Cash $ (1,367) $ 0 $ (0) $ (77) $ -
============== ============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION> Trolli Inc.
------------------------------------------------------------------------------------
Trolli Trolli Trolli Trolli Trolli
Bank of Bank of Bank of First Union 1st National
BANK NAME: America America America Bank in Creston
ACCOUNT #: 8765-7-62355 8765-9-62354 8765-5-61583 2651901387172 375162
--------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Beginning Bank Ledger Balance $ 2 Account Closed
Receipts for Period 7,800 672 As of 4/30/99
Disbursements for Period 7,800 672
-------------- -------------- -------------- -------------- --------------
Ending Bank Ledger Balance $ - $ - $ - $ 2 $ -
============== ============== ============== ============== ==============
RECONCILIATION TO GENERAL LEDGER
- --------------------------------
Ending Bank Ledger Balance $ - $ - $ - $ 2 $ -
Outstanding Checks 1,693 180 16
Deposits in Transit
Other Reconciling Items (9)
-------------- -------------- -------------- -------------- --------------
Total Cash $ (1,693) $ (180) $ (25) $ 2 $ -
============== ============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION> Trolli Inc.
------------------------------------------------------------------------------------
Trolli Trolli Trolli Trolli
1st National 1st National Nova Scotia Total
BANK NAME: Bank in Creston Bank in Creston Petty Cash Bank
ACCOUNT #: 2025443 2025450 1113212
---------------- --------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Beginning Bank Ledger Balance Account Closed $ 7 $ - $ 17 $ 11,875
Receipts for Period As of 6/30/99 392,267
Disbursements for Period 1 373,523
-------------- -------------- -------------- -------------- --------------
Ending Bank Ledger Balance $ - $ 6 $ - $ 17 $ 30,618
============== ============== ============== ============== ==============
RECONCILIATION TO GENERAL LEDGER
- --------------------------------
Ending Bank Ledger Balance $ - $ 6 $ - $ 17 $ 30,618
Outstanding Checks 1 9,117
Deposits in Transit (6)
Other Reconciling Items 1 5,636
-------------- -------------- -------------- -------------- --------------
Total Cash $ - $ 5 $ 1 $ 17 $ 27,130
============== ============== ============== ============== ==============
</TABLE>
(1) Amounts are held in individual bank accounts specific for each
owner/operators' deposit to Sather Trucking.
<PAGE>
FAVORITE BRANDS INTERNATIONAL HOLDING CORP.
Aging of Accounts Receivable and Postpetition Accounts Payable
For the Period
(Thousands of Dollars)
Debtors: Favorite Brands International Holding Corp., Favorite Brands
International, Inc., Trolli Inc., and Sather Trucking Corporation
(the "Debtors")
Case Numbers: 99-726PJW through 99-729PJW
AGING OF ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
AGING OF ACCOUNTS RECEIVABLE
0 - 30 days old $ 40,247
31 - 60 days old 4,201
61 - 90 days old 1,086
+ 91 days old 848
Other A/R 17,581
-----------------
Total Accounts Receivable 63,963
Allowance for doubtful accounts 18,445
-----------------
Accounts Receivable (Net) $ 45,518
=================
AGING OF POSTPETITION ACCOUNTS PAYABLE
0 - 30 days old $ 22,342
31 - 60 days old 1,098
61 - 90 days old 569
+ 91 days old 42
----------------
Total Post Petition Accounts Payable $ 24,051
================
<PAGE>
FAVORITE BRANDS INTERNATIONAL HOLDING CORP.
Statement of Payments to Professionals
For the Period
(Thousands of Dollars)
Debtors: Favorite Brands International Holding Corp., Favorite Brands
International, Inc., Trolli Inc., and Sather Trucking Corporation
(the "Debtors")
Case Numbers: 99-726PJW through 99-729PJW
<TABLE>
<CAPTION>
Date of Court
Type of Order Authorizing Amount Amount Total Paid
Professional Payment Approved Paid to Date
- ---------------------------------------- ----------------------- ----------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Skadden, Arps, Slate, Meagher & Flom debtor attorney N/A N/A $ 401 $ 601
Wasserstein Perella & Co. debtor financial advisors N/A N/A - 163
Paul, Weiss, Rifkind, Wharton & Garrison creditor committee attorney N/A N/A 119 119
----------- --------- ---------
Total Payments to Professionals $ - $ 520 $ 883
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</TABLE>
