SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): February 11, 1997
SEA GALLEY STORES, INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-10111 91-0838080
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
14424 - 52nd Pl. W., Edmonds, WA 98026
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (206) 742-7042
Page 1 of 3
<PAGE>
ITEM 5. OTHER EVENTS.
By letter dated March 24, 1995, the Commission staff granted the
Registrant's request for relief from the obligation to file reports on Form
10-K or Form 10-Q during the pendency of its bankruptcy proceedings in the
United States Bankruptcy Court for the Western District of Washington, at
Seattle (the "Court"). In lieu thereof, the Registrant had undertaken to
file with the Commission under cover of Form 8-K copies of certain periodic
reports that the Registrant is required by the United States Trustee to
file with the Court.
The report of the Registrant covering the month ended December
31, 1996 has been filed with the Court and is included as an exhibit to
this report. The due date for the filing of the report with the Court was
January 15, 1997. The report is available for public review and copying in
the Office of the Clerk of the Court.
ITEM 7(C). EXHIBIT.
99.24 Report to the U.S. Trustee for the month ended
January 31, 1997
SIGNATURES
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 hereto duly authorized.
Registrant:
SEA GALLEY STORES, INC.
February 11, 1997 By: /s/ JAN F. YOUNG
-------------------------------
Jan F. Young, President
Page 2 of 3
<PAGE>
EXHIBIT INDEX
Sequentially
Exhibit Numbered
Number Description Page
- ------ ----------- ------------
99.24 Report to the U.S. Trustee for the month
ended January 31, 1997 4
Page 3 of 3
OFFICE OF THE U.S. TRUSTEE - REGION 18 UST-3
SEATTLE, WASHINGTON 12/1/91
MONTHLY REPORTING REQUIREMENTS
CORPORATIONS AND PARTNERSHIPS
-----------------------------
All Chapter 11 debtors (other than individuals) must serve the U.S. Trustee
and the U.S. Bankruptcy Court with the documents and reports identified
below no later than the 15th day of the month following the end of the
month covered by the report.
Debtor Name: Sea Galley Stores, Inc.
-----------------------
Case Number: 94-08946 For the Month Ending December 31, 1996
-------- -----------------
========================================================================
Document Previously Explanation
Required Documents Attached Submitted Attached
------------------ -------- --------- --------
1. Income Statement (profit (x) ( ) ( )
and loss statement).
2. Comparative Balance Sheet. (x) ( ) ( )
3. Statement of Cash Receipts (x) ( ) ( )
and Disbursements.
4. Statement of Aged Receivables. (x) ( ) ( )
5. Statement of Aged Payables. (x) ( ) ( )
6. Statement of Operations, (x) ( ) ( )
Taxes, Insurance and
Personnel.
7. Copy of Bank Statements. (x) ( ) ( )
8. Quarterly Statement of
Disbursements and U.S. Trustee ( ) ( ) ( )
Quarterly Fees Paid.
The undersigned certifies under penalty of perjury (28 U.S.C. section 1746)
that the information contained in this and accompanying reports is
complete, true and correct to the best of my knowledge, information and
belief.
By: JAN F. YOUNG Dated: February 11, 1997
------------------------------ -----------------
President & C.E.O
------------------------------
Title of Debtor Representative
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 18 UST-4
SEATTLE, WASHINGTON 12/1/91
INCOME STATEMENT
----------------
Debtor Name: Sea Galley Stores, Inc.
-----------------------
Case Number: 94-08946 For the Month Ending January 31, 1997
-------- -----------------
(SEE ATTTACHED INCOME STATEMENT)
<PAGE>
<TABLE>
<CAPTION>
SEA GALLEY STORES INC.
STATEMENT OF EARNINGS AND RETAINED EARNINGS
AS OF 12/31/1996
(UNAUDITED)
11/30/96 12/31/96 01/31/97
-------- -------- --------
<S> <C> <C> <C>
INCOME:
MISCELLANEOUS 18.56 - -
INTEREST EARNED ON MARCHEL 2,918.26 - -
-------- -------- --------
GROSS INCOME 2,936.82 0.00 0.00
EXPENSES:
CONSULTING\PAYROLL 2,308.00 2,308.00 2,308.00
LEGAL\401K AUDIT 0.00 0.00 0.00
RENT 500.00 500.00 500.00
PHONE 123.74 123.39 124.75
POSTAGE\OFFICE EXP\CASUAL LABOR 1.47 0.00 20.11
SETTLEMENT ON GARNISHMENT TO CONTINENTAL 0.00 0.00 0.00
U.S.TRUSTEE FEES 0.00 0.00 0.00
-------- -------- --------
TOTAL PERIOD EXPENSE 2,933.21 2,931.39 2,952.86
NET INCOME FOR PERIOD 3.61 (2,931.39) (2,952.86)
ADJUST BALANCE SHEET TO ACTUAL 0.00 0.00 0.00
-------- -------- --------
ADJUSTED BALANCE SHEET
INCOME (LOSS) 3.61 (2,931.39) (2,952.86)
======== ======== ========
</TABLE>
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 18 UST-5
SEATTLE, WASHINGTON 12/1/91
COMPARATIVE BALANCE SHEET
-------------------------
As of December 31, 1996
-----------------
Debtor Name: Sea Galley Stores, Inc.
-----------------------
Case Number: 94-08946
--------
(SEE ATTACHED COMPARATIVE BALANCE SHEET)
FOOTNOTES:
- ---------
* Explain significant events, including contingent liabilities and pending
lawsuits, which may have a major effect on the financial condition of the
debtor.
* Value assets at lower of cost or market and identify which method is
being used.
* Explain the method of inventory valuation if other than the lower of cost
or market is used.
* Identify any changes in stock holdings of "insiders" during
the reporting period.
* Insider is defined in 11 USC Section 101(30) as a general partner,
relative, officer, director, affiliate or person in control.
<PAGE>
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEET
AS OF 12/31/96
DEBTOR NAME: SEA GALLEY STORES, INC.
ASSETS: 11/30/96 12/31/96 01/31/96
- ------- -------- -------- --------
<S> <C> <C> <C>
CURRENT ASSETS
CASH 378,290 375,458 372,357
ACCOUNTS RECEIVABLE 12,442 12,342 (1) 12,242 (1)
NOTES RECEIVABLE 42,814 42,814 (2) 42,814 (2)
------- ------- -------
TOTAL CURRENT ASSETS 433,546 430,614 427,413
FIXED ASSETS:
LAND, BLDG, EQUIPMENT
LAND 0 0 0
BLDG 0 0 0
INT & IMPROV 0 0 0
OPERATING EQUIP 0 0 0
OTHER EQUIP & VEHICLES 0 0 0
PROP UNDER LEASE 0 0 0
------- ------- -------
TOTAL 0 0 0
------- ------- -------
ACCUM DEPRECIATION 0 0 0
------- ------- -------
NET 0 0 0
OTHER ASSETS:
DEPOSITS 202,500 202,500 202,500
INV IN AFFL 87,266 87,266 87,266
LIC. & L/H 0 0 0
BOND ISSUE 0 0 0
OTHER ASSETS 0 0 0
------- ------- -------
TOTAL OTHER ASSETS 289,766 289,766 289,766
TOTAL ASSETS 723,312 720,380 717,179
======= ======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
11/30/96 12/31/96 01/31/97
-------- -------- --------
<S> <C> <C> <C>
LIABILITIES
POSTPETITION LIABILITIES
TRADE PAYABLES 349,332 349,322 349,324
TAXES PAYABLE 17,065 17,065 17,065 (3)
MISC RESERVES 5,753 5,753 5,503 (4)
---------- ---------- ----------
TOTAL POSTPETITION LIABILITIES 372,141 372,140 371,892
PREPETITION LIABILITIES:
UNSECURED DEBT 7,367,471 7,367,471 7,367,471
NOTES PAYABLE 479,972 479,972 479,972 (5)
TAXES 222,170 222,170 222,170
WAGES 41,164 41,164 41,164
GIFT CERTIFICATES 173,811 173,811 173,811
---------- ---------- ----------
TOTAL PREPETITION LIABILITIES 8,284,588 8,284,588 8,284,588
OWNER EQUITY (DEFICIT)
COMMON STOCK 785,921 785,921 785,921
PAID IN CAPITAL 18,479,444 18,479,444 18,479,444
RETAINED EARNINGS (21,812,935) (21,815,887) (21,818,820)
(2,547,570) (2,550,502) (2,553,455)
COMMON STOCK IN TREASURY 5,385,846 5,385,846 5,385,846
TOTAL S/H EQUITY (7,933,416) (7,936,348) (7,939,301)
---------- ---------- ----------
TOTAL LIABILITIES AND OWNERS EQUITY 723,312 720,380 717,179
========== ========== ==========
(1) Jan Young 7,430
THK (Tye Kinzer) Doubtful Account 4,812
---------
TOTAL ACCOUNTS RECEIVABLE 12,242
---------
(2) J&B (PAID IN FULL) --
Kalakis 14,313
Marchel 28,501
---------
TOTAL NOTES RECEIVABLE 42,814
---------
NOTE:
(3) Personal and Real Estate tax accruals
(4) Misc reserve accruals for unexpected costs, such as corp tax prep, etc.
(5) Adjust Notes Payable for Pumphouse Notes
</TABLE>
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 18 UST-6
SEATTLE, WASHINGTON 12/1/91
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
--------------------------------------------
For the Month Ending January 31, 1997
----------------
Debtor Name: Sea Galley Stores, Inc.
-----------------------
Case Number: 94-08946 Account Name: Sea Galley Stores, Inc.
-------- -----------------------
Depository: _________________________
=====================================================================
CASH RECEIPTS
---------------------------------
(attach additional sheets as necessary)
Date Description (Source) Amount
---- -------------------- ------
12/1/96 Beginning Cash Balance $375,458.06
----------
Add: (List)
Cash Receipts (see Attached) $ 0.
----------
Total Cash Receipts $
Total Cash Available This Month $375,458.06
----------
=====================================================================
CASH DISBURSEMENTS
---------------------------------
(attach additional sheets as necessary)
Date Check No. Payee Description Amount
---- --------- ----- ----------- ------
(see Attached)
Less: Cash Disbursements $ 3,101.50
----------
Adjustments (explain)
----------
Ending Cash Balance (must be reconcilable to the bank
statement for account cited above) $372,356.56
----------
<PAGE>
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
--------------------------------------------
For Period Four Ending: January 31, 1997
----------------
Debtor Name: Sea Galley Stores, Inc.
-----------------------
Case Number: 94-08946 Account Name: Sea Galley Stores, Inc.
-------- -----------------------
<TABLE>
<CAPTION>
CASH RECEIPTS
Date Description (Source) Amount
---- -------------------- ------
<S> <C> <C> <C>
Begining Cash Balance 375,458.06
Concentration account 119,915.84
Holding account 255,310.65
Petty Cash/Office Equip 231.57
----------
375,458.06
ADD: (List)
Cash Receipts
Office Equipment\Supplies 0.00
Misc Deposits 0.00
Total Cash Receipts 0.00
-------- ----------
Total Cash Available This Month 375,458.06
CASH DISBURSEMENTS
Date Account Payee Description Amount
- ---- ------- ----- ----------- ------
12/1-12/31/96 Petty Cash Cash postage/phone/casual labo 20.11
12/1-12/31/96 A/P Attached Accounts Payable 3,081.39
3,101.50
-------- ----------
Concentration account 116,834.45
Holding account (Attached) 255,310.65
Petty Cash/Office Equip 211.46
----------
372,356.56
Ending Cash Balance 372,356.56
==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCTS PAYABLE 2/1/97
Register Report by Payee
1/1/97 Through 1/31/97
Page 1
Date Num Description Memo Category Clr Amount
- ----------- -------- -------------------- ------------------------ ------------ ----- ---------
<C> <C> <C> <C> <C> <C>
1/14/97 1139 VERNE VANDERMOON OFFICE & STORAGE RENT Misc -500.00
1/14/97 1141 JAN YOUNG 1/1-1/15-LOAN-50 Misc -700.00
1/17/97 1142 SHIRLEY VANDERMOON 1/13-1/17 PAYROLL Misc -808.00
1/17/97 1145 US TRUSTEE 4th Q Fees Dues -250.00
1/19/97 1143 MCI LONG DISTANCE Telephone -10.83
1/19/97 1144 GTE PHONE Telephone -112.56
1/31/97 1140 JAN YOUNG 1/16-1/31-LOAN-50 Misc -700.00
---------
TOTAL 1/1/97-1/31/97 -3,081.39
TOTAL INFLOWS 0.00
TOTAL OUTFLOWS -3,081.39
- -----------------------------------------------------------------------------------------------
NET TOTAL -3,081.39
- -----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 18 UST-7
SEATTLE, WASHINGTON 12/1/91
STATEMENT OF AGED RECEIVABLES
-----------------------------
For the Month Ending January 31, 1997
----------------
Debtor Name: Sea Galley Stores, Inc.
-----------------------
Case Number: 94-08946
--------
- --------------------------------------------------------------------------------
TOTAL CURRENT PAST DUE PAST DUE PAST DUE AMOUNT
DUE (0-30 DAYS) (31-60 DAYS) (61-90 DAYS) (91 & OVER) Considered
Uncollectible
- --------------------------------------------------------------------------------
TOTAL PREPETITION RECEIVABLES
- -----------------------------
$ 0 $ $ $ $ $
TOTAL POSTPETITION RECEIVABLES
- ------------------------------
$ 12,242 $ $ $ $12,242 $
TOTALS
$ 12,242 $ $ $ $12,242
NOTES:
1. List totals only, do not list each receivable.
2. Please explain what actions have been taken to collect receivables more
than 60 days past due.
3. Provide details on all receivables due from any related party
in an attachment. LOAN TO JAN YOUNG, PRESIDENT. CURRENT BALANCE
IS $7,430.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from Prior report) 12,342
------
2. New Accounts this Month 0
------
3. Balance (add lines 1 and 2) 12,342
------
4. Amount collected on Prior Accounts 100
------
5. Closing Balance (subtract line 4 from line 3) 12,242
------
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 18 UST-8
SEATTLE, WASHINGTON 12/1/91
STATEMENT OF AGED PAYABLES
--------------------------
For the Month Ending January 31, 1997
----------------
Debtor Name: Sea Galley Stores, Inc.
-----------------------
Case Number: 94-08946
--------
- --------------------------------------------------------------------------------
VENDOR TOTAL CURRENT PAST DUE PAST DUE PAST DUE
NAME DESCRIPTION DUE (0-30 DAYS) (31-60 DAYS) (61-90 DAYS) (91 & OVER)
- --------------------------------------------------------------------------------
You may combine all payables less than 30 days past due and show on one
line.
(SEE ATTACHED)
TOTALS 349,323.72
NOTE: Please include only postpetition debts and explain why accounts over
30 days past due have not been paid.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ACCOUNTS PAYABLE RECONCILIATION:
1. Opening Balance (total from Prior report) 349,322.36
----------
2. Total New Indebtedness Incurred This Month 3,082.75
----------
3. Balance (add lines 1 and 2) 352,405.11
----------
4. Amount Paid on Prior Accounts Payable 3,081.39
----------
5. Closing Balance (subtract line 4 from line 3) 349,323.72
----------
<PAGE>
<TABLE>
<CAPTION>
ACCOUNTS PAYABLE 2/1/97
Register Report by Payee
11/23/94 Through 1/31/97
Page 1
Date Num Description Memo Category Clr Amount
- ----------- -------- ------------------------- ------------------------ -------------- ----- ---------
<C> <C> <C> <C> <C> <C>
11/1/95 11 AEI 148 REPAIR & MAINT -66.98
----------
TOTAL AEI -66.98
9/21/95 9 ALASKA RIVERWAYS HEAD CHG - 205 -14,956.00
----------
TOTAL ALASKA RIVERWAYS -14,956.00
2/8/96 2 ASCAP 115-FINAL REPAIR & MAINT -297.10
2/8/98 2 ASCAP 120-FINAL REPAIR & MAINT -251.46
2/8/96 2 ASCAP 117-FINAL REPAIR & MAINT -462.86
2/8/96 2 ASCAP 148-FINAL REPAIR & MAINT -536.91
2/8/96 2 ASCAP 205-FINAL REPAIR & MAINT -541.41
----------
TOTAL ASCAP -2,089.74
4/1/95 4 BMI 001 -1,526.50
----------
TOTAL BMI -1,526.50
5/8/95 5 BUSH STROUT & KORNFELD CREDITORS LEGAL LEGAL -20,849.09
----------
TOTAL BUSH STROUT & KORNFELD -20,849.09
1/10/95 10267 CASH COMMUNICATIONS 120 -56.06
----------
TOTAL CASH COMMUNICATIONS -56.06
7/1/95 7 CITICORP NORTH AMERICA 250-NCR -809.01
----------
TOTAL CITICORP NORTH AMERICA -809.01
8/23/95 8 CITY OD SPOKANE-DEPT OF...OVER PAY 25.38
----------
TOTAL CITY OF SPOKANE-DEPT OF TAX 25.38
8/10/95 8 DAN COFFEY 001 LEGAL -748.50
----------
TOTAL DAN COFFEY -748.50
8/1/95 8 FINANCIAL PACIFIC 250-208.77,323.97,251.21 -783.95
----------
TOTAL FINANCIAL PACIFIC -783.95
4/7/96 4 FIRST INTERSTATE BANK NEG PRICE Other Exp -4,862.47
----------
TOTAL FIRST INTERSTATE BANK -4,862.47
12/16/96 12/16 GTE PHONE Telephone -112.56
1/14/97 1144 GTE PHONE Telephone 112.56
1/16/97 1/16 GTE PHONE Telephone -113.81
----------
TOTAL GTE -113.81
2/22/95 2 HAGE & ASSOCIATES 205-APPRAISAL -425.00
----------
TOTAL HAGE & ASSOCIATES -425.00
8/1/95 8 HEATH SIGNS NORTHWEST 250 -645.99
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCOUNTS PAYABLE 2/1/97
Register Report by Payee
11/23/94 Through 1/31/97
Page 1
Date Num Description Memo Category Clr Amount
- ----------- -------- ------------------------- ------------------------ -------------- ----- ---------
<C> <C> <C> <C> <C> <C>
TOTAL HEATH SIGNS NORTHWEST -645.99
8/4/95 9 HOSPITALITY MAINTENANCE 205-REG MAINT -647.00
----------
TOTAL HOSPITALITY MAINTENANCE -647.00
2/19/95 8 INDUSTRIAL SERVICE CO MAINT-APPROVED -1,446.75
2/19/96 9 INDUSTRIAL SERVICE CO MAINT-APPROVED -321.01
2/19/96 9 INDUSTRIAL SERVICE CO MAINT-APPROVED -448.78
2/19/96 9 INDUSTRIAL SERVICE CO MAINT-APPROVED -958.00
----------
TOTAL INDUSTRIAL SERVICE CO. -3,174.54
1/16/97 1/16 JAN YOUNG 1/1-1/15-LOAN-50 PAYROLL EXPENSE -700.00
1/16/97 1140 JAN YOUNG 1/1-1/15-LOAN-50 PAYROLL EXPENSE 700.00
1/31/97 1/31 JAN YOUNG 1/16-1/31-LOAN-50 PAYROLL EXPENSE -700.00
1/31/97 1141 JAN YOUNG 1/16-1/31-LOAN-50 PAYROLL EXPENSE 700.00
----------
TOTAL JAN YOUNG 0.00
12/19/96 12/19 MCI LONG DISTANCE Telephone -10.83
1/14/97 1143 MCI LONG DISTANCE Telephone 10.83
1/19/97 1/19 MCI LONG DISTANCE Telephone -10.94
----------
TOTAL MCI -10.94
8/1/95 5 PEPSI COLA BOTTLING 250-5 TO 8 -400.00
----------
TOTAL PEPSI COLA BOTTLING -400.00
1/17/97 1/17 SHIRLEY VANDERMOON 1/13-1/17 PAYROLL PAYROLL EXPENSE -808.00
1/17/97 1142 SHIRLEY VANDERMOON 1/13-1/17 PAYROLL PAYROLL EXPENSE 808.00
----------
TOTAL SHIRLEY VANDERMOON 0.00
4/30/96 4 SPOKANE COUNTY TREASU... 117 P/P 95 TAX Tax -718.77
----------
TOTAL SPOKANE COUNTY TREASURER -718.77
12/18/95 12 STOEL RIVES BOLEY JONES... THRU 12/18/95 LEGAL -271,274.10
2/1/96 12 STOEL RIVES BOLEY JONES... THRU 12/31/95 -7,446.22
2/7/96 1 STOEL RIVES BOLEY JONES... THRU 1/31/96 LEGAL -8,027.05
4/1/96 2 STOEL RIVES BOLEY JONES... THRU 1/31/96 LEGAL -5,148.30
----------
TOTAL STOEL RIVES BOLEY JONES & GREY -291,895.67
2/12/96 2 SWEENY CONRAD 401K AUDIT-FINAL Other Exp -4,300.00
----------
TOTAL SWEENY CONRAD -4,300.00
1/17/97 1/17 US TRUSTEE 4th Q Fees Dues -250.00
1/17/97 1145 US TRUSTEE 4th Q Fees Dues 250.00
----------
TOTAL US TRUSTEE 0.00
1/14/97 1/14 VERNE VANDERMOON OFFICE & STORAGE RENT STOR & OFF RENT -500.00
1/14/97 1139 VERNE VANDERMOON OFFICE & STORAGE RENT STOR & OFF RENT 500.00
----------
TOTAL VERNE VANDERMOON 0.00
5/31/95 3 WEST BOISE SEWER DISTRI... 118-FINAL -269.08
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ACCOUNTS PAYABLE 2/1/97
Register Report by Payee
11/23/94 Through 1/31/97
Page 1
Date Num Description Memo Category Clr Amount
- ----------- -------- ------------------------- ------------------------ -------------- ----- ---------
<C> <C> <C> <C> <C> <C>
----------
TOTAL WEST BOISE SEWER DISTRICT -269.08
- ------------------------------------------------------------------------------------------------------
OVERALL TOTAL -349,323.72
===========
- ------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 18 UST-9
SEATTLE, WASHINGTON 12/1/91
STATEMENT OF OPERATIONS, TAXES INSURANCE AND PERSONNEL
------------------------------------------------------
For the Month Ending January 31, 1997
----------------
Debtor Name: Sea Galley Stores, Inc.
-----------------------
Case Number: 94-08946
--------
1. What efforts have been made toward presentation of a plan to the
creditors?
Despite significant reductions in general and administrative
overhead expenses, Sea Galley determined that its operations could
not be sustained at a profitable level and an orderly liquidation of
its assets was in the best interest of creditors. Accordingly, Sea
Galley has liquidated its operating assets (i.e., its restaurants)
and is working with the Creditor's Committee to develop a plan for
the liquidation and distribution of its remaining assets.
Sea Galley presently is engaged in discussions with appropriate
parties in interest, including the State of Washington Department of
Revenue and the holders of certain administrative expense claims,
concerning the terms of the plan to be proposed by Sea Galley.
2. Has the Debtor in Possession, subsequent to the filing of the
petition, made any payments on its prepetition unsecured debt, except
as have been authorized by the Court?
: Yes
-----
X : No Identify amount, who was paid and date paid: __________
-----
--------------------------------------------------------------
3. Provide a narrative report of significant events and events out of the
ordinary course of business: (attach separate sheet if necessary)
N/A
4. List any payments during this period on debt that has been personally
guaranteed by any principal, partner or officer of the business.
N/A
<PAGE>
UST-9
12/1/91
5. If assets have been sold in other than the ordinary course of
business, please provide details as to the asset sold, date of sale,
total sales price, deductions (ie. commissions), and net amount
received (if the sale was of real estate include the closing
statement.
N/A
6. STATUS OF TAXES
AMOUNT WITHHELD AMOUNT DATE POSTPETITION TAXES
FEDERAL TAXES OR ACCRUED PAID PAID PAST DUE
- ------------- --------------- ------ ---- ------------------
FICA 0 0
--------------- ------ ---- ------------------
Withholding 0 0
--------------- ------ ---- ------------------
Unemployment 0 0
--------------- ------ ---- ------------------
Income 0 0
--------------- ------ ---- ------------------
Other 0 0
--------------- ------ ---- ------------------
STATE TAXES
- -----------
Dept of Labor
and Industries 0 0
--------------- ------ ---- ------------------
Income 0 0
--------------- ------ ---- ------------------
Employment Sec 0 0
--------------- ------ ---- ------------------
Dept of Rev
B&O 0 0
--------------- ------ ---- ------------------
Sales 0 0
--------------- ------ ---- ------------------
Excise 0 0
--------------- ------ ---- ------------------
OTHER TAXES
- -----------
City Business/
License 0 0
--------------- ------ ---- ------------------
Personal
Property 718.77 0 Spokane Valley
--------------- ------ ---- ------------------
Real Property 0 0
--------------- ------ ---- ------------------
Other (List) 0 0
--------------- ------ ---- ------------------
<PAGE>
UST-9
12/1/91
Explain reason for any past due postpetition taxes:
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
7. SCHEDULE OF SALARY AND OTHER PAYMENTS TO PRINCIPALS/EXECUTIVES/
INSIDERS*
Payee Name Position Nature of Payment Amount
- ---------- -------- ----------------- ------
Jan Young President Consulting fees $1,500
- ------------- ------------- ----------------------- per month
- ------------- ------------- ----------------------- -----------
*List accrued salaries whether or not paid and any draws of any
kind or perks such as car etc. made to or for the benefit of any
proprietor, owner, partner, shareholder, officer, director or insider.
8. SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS
Sea Galley has reported certain accrued unpaid bankruptcy attorneys'
fees in the "Expenses: Legal" line of its Statement of Earnings and
Retained Earnings (Form UST-4) and in the Postpetition Trade Payables
line of its Balance Sheet (Form UST-5). The total and most recent
months' attorneys ' fees for services provided by Stoel Rives LLP to
Sea Galley and for services provided by Bush Strout & Kornfeld to the
Official Unsecured Creditors Committee are shown in the "Register
Report by Payee" attached to Sea Galley's Statement of Aged Payables
(Form UST-8).
All such attorneys' fees must be allowed by the Bankruptcy Court and
approved for payment after notice and hearing. On June 16, 1995 the
Bankruptcy Court allowed fees and costs of $134,657.75 of Stoel Rives
and fees and costs of $20,849.09 of Bush Strout. Although substantial
additional attorneys fees and costs have been accrued by Sea Galley
and the Official Unsecured Creditors Committee since April 30, 1995,
no applications for allowance of attorneys fees and costs have been
made since such date, and no such amounts have been approved for
payment.
Sea Galley also has advanced payment of legal fees to Dieter G.
Struzyna, its Court-approved outside general counsel, in the ordinary
course pursuant to the terms of the Order appointing Mr. Struzyna.
<PAGE>
UST-9
12/1/91
9. Please explain any changes in insurance coverage that took place this
month.
N/A
10. PERSONNEL
Full Time Part Time
Total number of employees at beginning of period 0 2
--------- ---------
Number hired during the period 0 0
--------- ---------
Number terminated or resigned during period 0 0
--------- ---------
Total number of employees on payroll at period end 0 2
--------- ---------
Total payroll for the period $ * see note
------------
* Sea Galley is paying Jan Young consultant fees at the rate of $1,500
per month. Shirley Vandermoon, who recently returned from a two-month
unpaid leave of absence, presently is working full-time for one week a
month at the rate of $808.00. Sea Galley's last formal payroll, with
payroll taxes being withheld, was on 12/07/95.
<PAGE>
ACCOUNT STATEMENT
SEA GALLEY STORES, INC. ACCOUNT NUMBER
HOLDING ACCOUNT 69745818
14424 52ND PL W STATEMENT PERIOD
EDMONDS WA 98026-3808 1-01-97 TO 1-31-97
CHECKING
CORPORATE CHECKING 69745818
------------------ --------
BEGINNING BALANCE 255,310.65
TOTAL CREDITS .00
TOTAL MISC DEBITS .00
TOTAL CHECKS .00
SERVICE CHARGES/FEES .00
ENDING BALANCE 255,310.65
NUMBER OF CREDITS 0
NUMBER OF MISC DEBITS 0
NUMBER OF CHECKS 0
<PAGE>
ACCOUNT STATEMENT
SEA GALLEY STORES, INC. ACCOUNT NUMBER
CONCENTRATION ACCOUNT 67237016
14424 52ND PL W STATEMENT PERIOD
EDMONDS WA 98026-3808 1-01-97 TO 1-31-97
CHECKING
CORPORATE CHECKING 67237016
------------------ --------
BEGINNING BALANCE 119,915.84
TOTAL CREDITS .00
TOTAL MISC DEBITS 3,081.39
TOTAL CHECKS .00
SERVICE CHARGES/FEES .00
ENDING BALANCE 116,834.45
NUMBER OF CREDITS 0
NUMBER OF MISC DEBITS 2
NUMBER OF CHECKS 0
<PAGE>
ACCOUNT STATEMENT
SEA GALLEY ACCOUNTS PAYABLE ACCOUNT NUMBER
DEBTOR IN POSSESSION, CASE 940 67697706
14424 52ND PL W STATEMENT PERIOD
EDMONDS WA 98026-3808 1-01-97 TO 1-31-97
CHECKING
CORPORATE CHECKING 67697706
------------------ --------
BEGINNING BALANCE 985.09
TOTAL CREDITS 3,081.39
TOTAL MISC DEBITS .00
TOTAL CHECKS 3,081.39
SERVICE CHARGES/FEES .00
ENDING BALANCE 985.09
NUMBER OF CREDITS 2
NUMBER OF MISC DEBITS 0
NUMBER OF CHECKS 7
<PAGE>
ACCOUNT STATEMENT
SEA GALLEY PAYROLL ACCOUNT ACCOUNT NUMBER
DEBTOR IN POSSESSION, CASE 94 67697607
14424 52ND PL W STATEMENT PERIOD
EDMONDS WA 98026-3808 1-01-97 TO 1-31-97
CHECKING
CORPORATE CHECKING 67697607
------------------ --------
BEGINNING BALANCE 1,656.18
TOTAL CREDITS .00
TOTAL MISC DEBITS .00
TOTAL CHECKS .00
SERVICE CHARGES/FEES .00
ENDING BALANCE 1,656.18
NUMBER OF CREDITS 0
NUMBER OF MISC DEBITS 0
NUMBER OF CHECKS 0
