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
November 19, 1998
CONCORD ENERGY INCORPORATED
(Exact Name of Registrant as Specified in its charter)
Delaware 2-6806-NY 22-2670198
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1515 Simmons Street, Jourdanton, Texas 78026
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (830) 769-3955
<PAGE>
Item 5. Other Events.
On November 6, 1998, Concord Energy Incorporated (the "Company") and its
subsidiary Knight Equipment & Manufacturing Corporation ("KEMCO") filed Monthly
Operating Reports for the period ended September 30, 1998 pursuant to Chapter 11
of the United States Bankruptcy Code, Case No. 98-54129-K and 98-54130-K,
respectively, with the United States Bankruptcy Court, Western District of
Texas, San Antonio Division, and with the United States Trustees Office in San
Antonio, Texas.
Copies of the Monthly Operating Reports of the Company and its subsidiary
KEMCO are filed herewith as Exhibit 99.1 and Exhibit 99.2 and incorporated
herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits
The following exhibits are filed as part of this report:
99.1 September 1998 Monthly Operating Report of Concord Energy
Incorporated.
99.2 September 1998 Monthly Operating Report of Knight Equipment &
Manufacturing Corporation.
<PAGE>
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 hereunto duly authorized.
Concord Energy Incorporated
(Registrant)
Dated: November 19, 1998 By: /S/ Deral Knight
-------------------------------
Deral Knight,
President, Chief Executive Officer
and Chairman of the Board of Directors
<PAGE>
EXHIBIT INDEX
Exhibit Page
Number Description Number
- ------ ----------- ------
99.1 September 1998 Monthly Operating
Report of Concord Energy Incorporated 5
99.2 September 1998 Monthly Operating
Report of Knight Equipment &
Manufacturing Corporation 14
UNITED STATES BANKRUPTCY COURT FILED
WESTERN DISTRICT OF TEXAS NOV 06 1998
SAN ANTONIO DIVISION BY_________ DEPUTY
CASE NAME: Concord Energy Incorporated Petition Date: 08/27/1998
CASE NUMBER: 98-54129-RBK
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: SEPTEMBER YEAR 1998
MONTH SEPTEMBER 98
REVENUES (MOR-6) 0
INCOME BEFORE INT, DEPREC./ TAX (MOR-6) (982)
NET INCOME (LOSS) (MOR-6) (35,049)
PAYMENTS TO INSIDERS (MOR-9) 0
PAYMENTS TO PROFESSIONALS (MOR-9) 0
TOTAL DISBURSEMENTS (MOR-8) 195
*** The original of this document must be filed with the United States
Bankruptcy Court and a copy must be sent to the United States Trustees***
-----------------------------------------------------------------------
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
________________________________________ DATE
CASUALTY N/A YES ( ) NO ( ) ___-___-___
LIABILITY N/A YES ( ) NO ( ) ___-___-___
VEHICLE N/A YES ( ) NO ( ) ___-___-___
WORKER'S N/A YES ( ) NO ( ) ___-___-___
ATTORNEY NAME: Deborah D. Williams
FIRM: Cox & Smith, Incorporated
ADDRESS: 112 East Pecan
ADDRESS: Suite 1800
CITY, STATE ZIP: San Antonio, Texas 78205
CIRCLE ONE
Are all accounts receivable being collected within terms? Yes (No)
Are all post-petition liabilities, including taxes, being paid within terms?
(Yes) No
Have any pre-petition liabilities been paid? Yes (No) If so, describe: _________
____________________________________________________________________
Are all funds received being deposited into DIP bank accounts? (Yes) No
Were any assets disposed of outside the normal course of business? Yes (No)
If so, describe ________________________________________________________
Are all U.S. Trustee Quarterly Fee Payments current? (Yes) No
What is the status of your Plan of Reorganization? Debtor has not yet filed a
plan but is in the preliminary negotiations with various secured parties.
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED: /s/ Scott S. Kalish
-------------------------------------
(ORIGINAL SIGNATURE)
TITLE: Treasurer
-------------------------------------
MOR-1 Revised 07-01-98
<PAGE>
CASE NAME: Concord Energy Incorporated CASE NUMBER: 98-54129-RBK
COMPARATIVE BALANCE SHEETS
<TABLE>
<CAPTION>
FILING DATE * MONTH MONTH MONTH MONTH MONTH MONTH ASSETS
08/27/98 SEPTEMBER 98
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash 0 0
Accounts Receivable, Net 0 0
Inventory: Lower of Cost or Market 0 0
Prepaid Expenses 50,000 50,000
Investments 0 0
Other 0 0
------ ------
TOTAL CURRENT ASSETS 50,000 50,000
====== ======
PROPERTY, PLANT & EQUIP, @ COST 0 0
Less Accumulated Depreciation 0 0
NET BOOK VALUE OF PP & E 0 0
OTHER ASSETS:
1. Tax Deposits 0 0
2. Investments in Subs 8,800,000 8,800,000
3. Organizational Costs 1,240 1,240
4. (attach list)
--------- ---------
TOTAL ASSETS 8,851,240 8,851,240
========= =========
</TABLE>
* Per Schedules and Statement of Affairs
MOR-2 Revised 07/01/98
<PAGE>
CASE NAME: Concord Energy Incorporated CASE NUMBER: 98-54129-RBK
COMPARATIVE BALANCE SHEETS
<TABLE>
<CAPTION>
FILING DATE * MONTH MONTH MONTH MONTH MONTH MONTH
LIABILITIES & OWNERS 08/27/98 SEPTEMBER 98
- -------------------------------------------------------------------------------------------------------------------
EQUITY
<S> <C> <C>
LIABILITIES
POST PETITION LIABILITIES (MOR-4) 982
PRE-PETITION LIABILITIES:
Notes Payable- Secured
Priority Debt 31,500 31,500
Federal Income Tax 0 0
FICA/Withholding 0 0
Unsecured Debt 3,841,314 3,841,314
--------- ---------
Other
TOTAL PRE-PETITION LIABILITIES 3,872,814 3,872,814
--------- ---------
TOTAL LIABILITIES 3,872,814 3,873,796
========= =========
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK
COMMON STOCK 605 605
ADDITIONAL PAID-IN CAPITAL 6,688,322 6,688,322
RETAINED EARNINGS: Filing Date (1,710,501) (1,710,501)
RETAINED EARNINGS: Post Filing Date (982)
TOTAL OWNER'S EQUITY (NET WORTH) 4,978,426 4,977,440
--------- ---------
TOTAL LIABILITIES & 8,851,240 8,851,246
========= =========
OWNER'S EQUITY
</TABLE>
* Per Schedules and Statement of Affairs
MOR-3 Revised 07/01/98
<PAGE>
CASE NAME: Concord Energy Incorporated CASE NUMBER: 98-54129-RBK
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH MONTH MONTH
SEPTEMBER 98
- --------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLES 787
TAX PAYABLE:
Federal Payroll Taxes 0
State Payroll & Sales 0
Ad Valorem Taxes 0
Other Taxes 0
TOTAL TAXES PAYABLE 0
SECURED DEBT POST-PETITION 0
ACCRUED INTEREST PAYABLE
*ACCRUED PROFESSIONAL FEES:
OTHER ACCRUED LIABILITIES:
1.
2. ADVANCE 195
-- ---
3.
TOTAL POST-PETITION
LIABILITIES (MOR-3) 982
===
* Payment Requires Court Approval
MOR-4 Revised 07/01/98
<PAGE>
CASE NAME: Concord Energy Incorporated CASE NUMBER: 98-54129-RBK
AGING OF POST-PETITION LIABILITIES
MONTH SEPTEMBER
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES AD-VALOREM, OTHER
OTHER TAXES
- --------------------------------------------------------------------------------
0-30 982 787 195
31-60
61-90
91+
--- --- ---
TOTAL 982 787 195
=== === ===
AGING OF ACCOUNTS RECEIVABLE
MONTH SEPTEMBER
- --------------------------------------------------------------------------------
0-30 DAYS 0
31-60 DAYS 0
61-90 DAYS 0
91+ DAYS 0
---
TOTAL 0
===
MOR-5 Revised 07/01/98
<PAGE>
CASE NAME: Concord Energy Incorporated CASE NUMBER: 98-54129-RBK
STATEMENT OF INCOME (LOSS)
FILING TO
MONTH SEPTEMBER 98 DATE
- --------------------------------------------------------------------------------
REVENUES (MOR-1) 0 0
TOTAL COST OF REVENUES 0 0
---- ----
GROSS PROFIT 0 0
---- ----
OPERATING EXPENSES:
Selling & Marketing 0 0
General & Administrative 982 982
Insiders Compensation 0 0
Professional Fees 0 0
Other (attach list) 0 0
---- ----
TOTAL OPERATING EXPENSES 982 982
---- ----
INCOME BEFORE INT, DEPR/TAX (MOR-1) (982) (982)
INTEREST EXPENSE 0 0
DEPRECIATION
OTHER (INCOME) EXPENSES*
OTHER ITEMS **
TOTAL INT, DEPR & OTHER ITEMS 0 0
---- ----
NET INCOME BEFORE TAXES (982) (982)
---- ----
FEDERAL INCOME TAXES
---- ----
NET INCOME (LOSS) (MOR-1) (982) (982)
==== ====
Accrual Accounting Required, Otherwise Footnote with Explanation.
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6 Revised 07/01/98
<PAGE>
CASE NAME: Concord Energy Incorporated CASE NUMBER: 98-54129-RBK
<TABLE>
<CAPTION>
CASH RECEIPTS AND MONTH MONTH MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS SEPTEMBER 98 DATE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1. CASH - BEGINNING OF MONTH 195* 195
RECEIPTS:
2. CASH SALES 0 0
3. COLLECTION OF ACCOUNTS RECEIVABLE 0 0
4. LOANS & ADVANCES (attach list) 0 0
5. SALE OF ASSETS 0 0
6. OTHER (attach list) 0 0
TOTAL RECEIPTS **
(Withdrawal) Contribution by Individual
Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 0 0
8. PAYROLL TAXES PAID 0 0
9. SALES,USE & OTHER TAXES PAID 0 0
10. SECURED / RENTAL / LEASES 0 0
11. UTILITIES 0 0
12. INSURANCE 0 0
13. INVENTORY PURCHASES 0 0
14. VEHICLE EXPENSES 0 0
15. TRAVEL & ENTERTAINMENT 0 0
16. REPAIRS, MAINTENANCE & SUPPLIES 0 0
17. ADMINISTRATIVE & SELLING 195 195
18. OTHER (attach list) 0 0
---- ----
TOTAL DISBURSEMENTS FROM OPERATIONS 195 195
---- ----
19. PROFESSIONAL FEES 0 0
20. U.S. TRUSTEE FEES 0 0
21. OTHER REORGANIZATION EXPENSES
(ATTACH LIST) 0 0
TOTAL DISBURSEMENTS** 195 195
---- ----
22. NET CASH FLOW (195) (195)
---- ----
23. CASH - END OF MONTH (MOR-2) 0 0
==== ====
</TABLE>
* Applies to Individual debtor's only
** Numbers for the current month should balance (match) RECEIPTS and
CHECKS/OTHER DISBURSEMENTS lines on MOR-8
* APPORTIONED FROM FUNDS ON ACCOUNT, MORE FULLY DESCRIBED ON MOR-8
MOR-7 Revised 07/01/98
<PAGE>
CASE NAME: Concord Energy Incorporated CASE NUMBER: 98-54129-RBK
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER
BANK NAME FIRST NATIONAL*
ACCOUNT NUMBER #20053902 # #
ACCOUNT TYPE OPERATING PAYROLL TAX OTHER FUNDS TOTAL
BANK BALANCE 1,433 1,433
DEPOSIT IN TRANSIT 0 0
OUTSTANDING CHECKS 195 195
------ ------
ADJUSTED BANK BALANCE 1,238 1,238
------ ------
BEGINNING CASH - PER BOOKS 98 98
RECEIPTS** 11,220 11,220
TRANSFERS BETWEEN ACCOUNTS*** (9,885) (9,885)
(WITHDRAWAL) CONTRIBUTION - BY
INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS 195 195
------ ------
ENDING CASH - PER BOOKS 1,238 1,238
====== ======
*** Numbers for the current month should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7.
MOR-8 Revised 07/01/98
<PAGE>
FOOTNOTES TO MOR - 8
* ALTHOUGH THIS ACCOUNT IS IN THE NAME OF THE DEBTOR, IT HAS HISTORICALLY BEEN
USED AS AN OPERATING ACCOUNT FOR THE COMBINED ACTIVITIES OF THE DEBTOR, CONCORD
ENERGY, INCORPORATED (DELAWARE) AND ITS WHOLLY OWNED SUBSIDIARY, CONCORD ENERGY,
INC. (NEVADA), A NON-DEBTOR. THE BALANCES REFLECTED HEREIN ARE FUNDS BELONGING
TO CONCORD ENERGY, INC. (NEVADA) AND, AS SUCH, ARE CONSIDERED ASSETS OF CONCORD
ENERGY, INC. (NEVADA). ON OCTOBER 16, 1998, CONCORD ENERGY, INC. (NEVADA)
ESTABLISHED A NEWLY CREATED ACCOUNT FOR ITS OPERATIONAL ACTIVITY.
** REPRESENTS RECEIPT OF NON-DEBTOR, CONCORD ENERGY, INC. (NEVADA) NET OIL & GAS
PRODUCTION REVENUES.
*** REPRESENTS TRANSFERS FROM NON-DEBTOR, CONCORD ENERGY, INC. (NEVADA) TO
ANOTHER OF DEBTOR'S WHOLLY OWNED SUBSIDIARIES, INTEGRATED PETROLEUM SYSTEMS,
INC., ALSO A NON-DEBTOR.
<PAGE>
CASE NAME: Concord Energy Incorporated CASE NUMBER: 98-54129-RBK
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 the
professionals. Also, for insiders identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
INSIDERS: NAME/POSITION/ MONTH MONTH MONTH MONTH MONTH MONTH
COMP TYPE SEPTEMBER
- --------------------------------------------------------------------------------
1.
2.
3.
4.
5.
6.
---
TOTAL INSIDERS (MOR-1) 0
===
PROFESSIONALS MONTH MONTH MONTH MONTH MONTH MONTH
NAME/ORDER DATE SEPTEMBER
- --------------------------------------------------------------------------------
1.
2.
3.
4.
5.
6.
---
TOTAL PROFESSIONALS (MOR-1) 0
===
MOR-9 Revised 07/01/98
UNITED STATES BANKRUPTCY COURT FILED
WESTERN DISTRICT OF TEXAS NOV 06 1998
SAN ANTONIO DIVISION BY__________ DEPUTY
CASE NAME: Knight Equipment & Manufacturing Corp. Petition Date: 08/27/1998
CASE NUMBER: 98-54130RBK
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: SEPTEMBER YEAR 1998
MONTH SEPTEMBER
----- ---------
REVENUES (MOR-6) 196,843
INCOME BEFORE INT, DEPREC./ TAX (MOR-6) 66,557
NET INCOME (LOSS) (MOR-6) 43,650
PAYMENTS TO INSIDERS (MOR-9) 27,012
PAYMENTS TO PROFESSIONALS (MOR-9) 0
TOTAL DISBURSEMENTS (MOR-8) 215,921
*** The original of this document must be filed with the United States
Bankruptcy Court and a copy must be sent to the United States Trustees***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE
EXP.
DATE
----
CASUALTY YES (X) NO ( ) 8-28-98
LIABILITY YES (X) NO ( ) 8-28-98
VEHICLE YES (X) NO ( ) 8-28-98
WORKER'S YES (X) NO ( ) 8-28-98
ATTORNEY NAME: Deborah D. Williams
FIRM: Cox & Smith, Incorporated
ADDRESS: 112 East Pecan
ADDRESS: Suite 1800
CITY, STATE ZIP: San Antonio, Texas 78205
CIRCLE ONE
Are all accounts receivable being collected within terms? Yes (No)
Are all post-petition liabilities, including taxes, being paid within terms?
(Yes) No
Have any pre-petition liabilities been paid? (Yes) No If so, describe:
OUTSTANDING UTILITIES, NOTES PAYABLE FOR FIXED ASSETS (CRANES, FORKLIFT, TRUCK
& BACKHOE) & PAYROLL TAXES.
Are all funds received being deposited into DIP bank accounts? (Yes) No
Were any assets disposed of outside the normal course of business? Yes (No)
If so, describe ________________________________________________________
Are all U.S. Trustee Quarterly Fee Payments current? (Yes) No
What is the status of your Plan of Reorganization? Debtor has not yet filed a
plan but is in preliminary negotiations with various secured parties.
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED: /s/ Scott S. Kalish
-------------------------------------
(ORIGINAL SIGNATURE)
TITLE: Treasurer
-------------------------------------
MOR-1
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
COMPARATIVE BALANCE SHEETS
<TABLE>
<CAPTION>
FILING DATE* MONTH MONTH MONTH MONTH MONTH MONTH
ASSETS 08/27/98 SEPTEMBER 98
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash 94,343 * 117,241
Accounts Receivable, Net 1,554,340 1,606,827
Inventory: Lower of Cost or Market 6,997,595 6,992,595
Prepaid Expenses 24,580 165,108
Investments
Other
---------- ----------
TOTAL CURRENT ASSETS 8,670,858 8,881,771
========== ==========
PROPERTY, PLANT & EQUIP, @ COST 1,528,769 ** 1,534,072
Less Accumulated Depreciation 389,201 400,053
NET BOOK VALUE OF PP & E 1,139,568 1,134,019
OTHER ASSETS:
1. Tax Deposits - DEFERRED
CREDIT 64,044 64,044
2. Investments in Subs
3. Bond Issuance Cost; Net 113,858 113,588
4. (attach list) Perry Gas
Processor Files 35,000 35,000
---------- ----------
TOTAL ASSETS 10,023,328 10,228,422
========== ==========
</TABLE>
* Per Schedules and Statement of Affairs
* ACTUAL CASH BALANCE ON 8/27/98, ALL OTHER INFORMATION REFLECTS 8/31/98
ENDING BALANCES, SINCE NO ADDITIONAL SIGNIFICANT ACTIVITIES WERE COMMENCED
UNTIL AFTER SEPTEMBER 1ST.
** SCHEDULES SHOW PROPERTY, PLANTS & EQUIPMENT AT MARKET VALUE; WE HAVE
CONVERTED TO COST FOR REPORTING PURPOSES TO THE U.S. TRUSTEE.
MOR-2 Revised 07/01/98
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
COMPARATIVE BALANCE SHEETS
<TABLE>
<CAPTION>
FILING DATE * MONTH MONTH MONTH MONTH MONTH MONTH
LIABILITIES & OWNERS EQUITY 08/27/98 SEPTEMBER 98
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 324,543
PRE-PETITION LABILITIES:
Notes Payable-Secured 2,755,328 2,750,590
Priority Debt 713,771 695,183
Federal Income Tax
FICA/Withholding 6,643 851
Unsecured Debt 6,198,744 6,064,866*
Other 2,436,612 2,436,509
---------- ----------
TOTAL PRE-PETITION LIABILITIES 12,111,098 12,272,542
========== ==========
OWNERS'S EQUITY (DEFICIT):
PREFERRED STOCK
COMMON STOCK 1,111 1,111
ADDITIONAL PAID-IN CAPITAL 356,210 356,210
RETAINED EARNINGS: Filing Date (2,445,091) (2,445,091)
RETAINED EARNINGS: Post Filing Date 43,650
---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (2,087,770) (2,044,120)
---------- ----------
TOTAL LIABILITIES & OWNER'S EQUITY 10,023,328 10,228,422
========== ==========
</TABLE>
* Per Schedules and Statement of Affairs
* THE REDUCTION IN UNSECURED DEBT RESULTED FROM THE COMBINATION OF THE PAYMENTS
FOR TRADE PAYABLES OF $13,797 (A MAJORITY OF WHICH WERE FOR UTILITIES) AND A
REDUCTION OF $120,081 IN UNEARNED REVENUE FROM A BALANCE OF $514,275 AT 8/31/98
TO $394,194 AT 9/30/98. THE UNEARNED REVENUE REPRESENTS THE PORTION OF A PREPAID
CONTRACT, WHICH THE COMPANY IS CURRENTLY WORKING ON, THAT HAS NOT BEEN EARNED
BASED ON CONSTRUCTION IN PROGRESS ACCOUNTING CALCULATIONS, A COPY OF WHICH HAS
BEEN ATTACHED.
MOR-3 Revised 07/01/98
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
SCHEDULE OF POST-PETITION LIABILITIES
MONTH MONTH MONTH MONTH MONTH MONTH
SEPTEMBER 98
- --------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE 15,856
TAX PAYABLE:
Federal Payroll Taxes 7,770
State Payroll & Sales 244
Ad Valorem Taxes 245
Other Taxes
TOTAL TAXES PAYABLE 8,259
SECURED DEBT POST-PETITION
-DIP LOAN 201,600
ACCRUED INTEREST PAYABLE
-DIP LOAN 1,383
*ACCRUED PROFESSIONAL FEES: 0
OTHER ACCRUED LIABILITIES:
1. INTEREST & PENALTIES
ON PRE-PETITION TAXES 2,525
2. PAYROLL COSTS (NET OF
TAXES) 25,057
3. NOTE PAYABLE FOR FINANCED
INSURANCE 69,863
-------
TOTAL POST-PETITION LIABILITIES
(MOR-3) 324,543
=======
* Payment Requires Court Approval
MOR-4 Revised 07/01/98
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
AGING OF POST-PETITION LIABILITIES
MONTH SEPTEMBER
TRADE AD-VALOREM,
DAYS TOTAL ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- --------------------------------------------------------------------------------
0-30 324,543 15,856 7,770 244 245 300,428
31-60
61-90
91+
------- ------ ----- --- --- -------
TOTAL 324,543 15,856 7,770 244 245 300,428
======= ====== ===== === === =======
AGING OF ACCOUNTS RECEIVABLE
MONTH
- --------------------------------------------------------------------------------
0-30 DAYS 52,487
31-60 DAYS 2,312
61-90 DAYS 14,895
91+ DAYS 1,546,636
---------
TOTAL 1,616,330
=========
MOR-5 Revised 07/01/98
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
STATEMENT OF INCOME (LOSS)
FILING TO
MONTH SEPTEMBER DATE
- --------------------------------------------------------------------------------
REVENUES (MOR-1) 196,843 196,843
TOTAL COST OF REVENUES 67,321 67,321
GROSS PROFIT 129,522 129,522
OPERATING EXPENSES:
Selling & Marketing 0 0
General & Administrative 35,942 35,942
Insiders Compensation 27,012 27,012
Professional Fees 11 11
Other (attach list) 0 0
TOTAL OPERATING EXPENSES 62,965 62,965
INCOME BEFORE INT, DEPR/TAX (MOR-1) 66,557 66,557
INTEREST EXPENSE 12,055 12,055
DEPRECIATION 10,852 10,852
OTHER (INCOME) EXPENSES* 0 0
OTHER ITEMS ** 0 0
TOTAL INT, DEPR & OTHER ITEMS 22,907 22,907
NET INCOME BEFORE TAXES 43,650 43,650
FEDERAL INCOME TAXES 0 0
NET INCOME (LOSS) (MOR-1) 43,650 43,650
Accrual Accounting Required, Otherwise Footnote with Explanation.
* Footnote Mandatory
** Unusual and/or infrequent item(s) outside the ordinary course of business;
requires footnote
MOR-6 Revised 07/01/98
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
<TABLE>
<CAPTION>
CASH RECEIPTS AND MONTH MONTH MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS SEPTEMBER 98 DATE
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1. CASH - BEGINNING OF MONTH 94,343
RECEIPTS:
2. CASH SALES 27,953
3. COLLECTION OF ACCOUNTS RECEIVABLE
4. LOANS & ADVANCES (attach list) DIP LOAN 201,600
5. SALE OF ASSETS
6. OTHER (attach list) 9,266
-------
TOTAL RECEIPTS ** 238,819
-------
(Withdrawal) Contribution by Individual
Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 88,038
8. PAYROLL TAXES PAID 25,079
9. SALES,USE & OTHER TAXES PAID 1,060
10. SECURED / RENTAL / LEASES 16,011
11. UTILITIES 12,265
12. INSURANCE 60,890
13. INVENTORY PURCHASES
14. VEHICLE EXPENSES 2,346
15. TRAVEL & ENTERTAINMENT 4,023
16. REPAIRS, MAINTENANCE & SUPPLIES 3,160
17. ADMINISTRATIVE & SELLING 3,049
18. OTHER (attach list)
-------
TOTAL DISBURSEMENTS FROM OPERATIONS 215,921
-------
19. PROFESSIONAL FEES 0
20. U.S. TRUSTEE FEES 0
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 0
-------
TOTAL DISBURSEMENTS** 215,921
-------
22. NET CASH FLOW 22,898
23. CASH - END OF MONTH (MOR-2) 117,241
</TABLE>
* Applies to Individual debtor's only
** Numbers for the current month should balance (match) RECEIPTS and
CHECKS/OTHER DISBURSEMENTS lines on MOR-8
MOR-7 Revised 07/01/98
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 98
<TABLE>
<S> <C> <C> <C> <C> <C>
BANK NAME FIRST NATIONAL*
ACCOUNT NUMBER #20052910 # #
ACCOUNT TYPE OPERATING PAYROLL TAX OTHER FUNDS TOTAL
BANK BALANCE 35,297 0 0 99,316 134,613
DEPOSIT IN TRANSIT 0 0 0 0 0
OUTSTANDING CHECKS 17,372 0 0 0 17,372
ADJUSTED BANK BALANCE 17,925 0 0 99,316 117,241
BEGINNING CASH - PER BOOKS (6,740) 0 0 101,083 94,343
RECEIPTS 238,819 0 0 0 238,819
TRANSFERS BETWEEN ACCOUNTS 1,767 0 0 (1,767) 0
(WITHDRAWAL) CONTRIBUTION - BY 0 0 0 0 0
INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS 215,921 0 0 0 215,921
ENDING CASH - PER BOOKS 17,925 0 0 99,316 117,241
</TABLE>
*** Numbers for the current month should balance (match) TOTAL RECEIPTS and
TOTAL DISBURSEMENTS lines on MOR-7.
*RECAP OF OTHER ACCOUNTS:
FIRST UNION NATIONAL BANK 2576000025 94,471
ATASCOSA NATIONAL BANK N/A 2,428
JOURDANTON STATE BANK 4033590 57
PETTY CASH N/A 2,258
FROST BANK - FIRST PAY N/A 102
--------
99,316
MOR-8 Revised 07/01/98
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
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 the
professionals. Also, for insiders identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
MONTH MONTH MONTH MONTH MONTH MONTH
INSIDERS: NAME/POSITION/COMP TYPE SEPTEMBER
- --------------------------------------------------------------------------------
1. DERAL KNIGHT - CEO - SALARY 9,926
2. DERAL KNIGHT - CEO - AUTO 1,746
3. BARRY LAIDLAW - PRES. -SALARY 5,385
4. BARRY LAIDLAW - PRES. - AUTO 755
5. SCOTT KALISH - TREAS. - SALARY 6,000
6. SHIRLEY J. BOYLE - SEC. - SALARY 3,200
------
TOTAL INSIDERS (MOR-1) 27,012
======
PROFESSIONALS MONTH MONTH MONTH MONTH MONTH MONTH
NAME/ORDER DATE
- --------------------------------------------------------------------------------
1.
2.
3.
4.
5.
6.
---
TOTAL PROFESSIONALS (MOR-1) 0
===
MOR-9
<PAGE>
Knight Equipment & Manufacturing Corp.
Case Number: 98-54130-RBK
Form MOR-7
Cash Receipts and Disbursement
Supportive Detail
Date Payee Description Amount
---- ----- ----------- ------
Receipts Detail
Item 2 - Cash Sales:
31-Aug-98 E Mcelroy 2 used Blowers 1,500
08-Sep-98 Comm. Metals Scap Sale 2,165
10-Sep-98 Oil Country Used Valves 13,286
15-Sep-98 Elkhorn Tech. Drawings 175
25-Sep-98 Comm. Metals Scap Sale 10,827
-------
Total Cash Sales 27,953
Item 4 - Loans & Advances:
01-Sep-98 Sable Capital Partners Dip Loan Advance 72,000
04-Sep-98 Sable Capital Partners Dip Loan Advance 45,534
11-Sep-98 Sable Capital Partners Dip Loan Advance 25,919
18-Sep-98 Sable Capital Partners Dip Loan Advance 26,160
25-Sep-98 Sable Capital Partners Dip Loan Advance 31,987
-------
Total Loans & Advances: 201,600
Item 6 - Other:
31-Aug-98 GEC Refund 9,261
10-Sep-98 Amercian Refund 5
-------
Total Other 9,266
-------
Total Receipts 238,819
=======
<PAGE>
Work in Progress
Earnings in Excess of Billings
September 1998
18-Nov-98
04:42:30 PM
Amoco 98-025
-------------------------
Billings to Date:
Intial Billing
Progress Billing 550,000.00
Retainage
Change Orders
----------
TL Billings to Date (9/30/98) 550,000.00 100.00%
Future Billings
Progress Billings 0.00
Retainage
Change Orders
----------
TL Future Billings 0.00 0.00%
---------- -------
TL Contract & Change Orders 550,000.00 100.00%
Costs to Date (9/30/98) 41,588.00
Paid by Customer
----------
Total Costs to Date (9/30/98) 41,588.00 30.00%
Estimated Future Costs:
Actual thru (10/15/98) 30,543.00
Paid by Customer
Estimated Additional Costs 66,491.00
----------
TL Estimated Future Costs 97,034.00 70.00%
---------- -------
TL Estimated Costs 138,622.00 100.00%
TL Contract & Change Orders 550,000.00
TL % Complete 30.00%
----------
165,005.55
TL Billings to Date (9/30/98) 550,000.00
----------
Earning in Excess of Billings (Current Accrual) (384,994.45)
