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
December 3, 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 December 3, 1998, Concord Energy Incorporated (the "Company") and its
subsidiary Knight Equipment & Manufacturing Corporation ("KEMCO") filed Monthly
Operating Reports for the period ended October 31, 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 October 1998 Monthly Operating Report of Concord Energy
Incorporated.
99.2 October 1998 Monthly Operating Report of Knight
Equipment & Manufacturing Corporation.
2
<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: December 3, 1998 By: /S/ Deral Knight
--------------------------------------
Deral Knight,
President, Chief Executive Officer
and Chairman of the Board of Directors
3
<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
4
UNITED STATES BANKRUPTCY COURT
WESTERN DISTRICT OF TEXAS
SAN ANTONIO DIVISION
CASE NAME: Concord Energy Incorporated Petition Date: 08/27/1998
CASE NUMBER: 98-54129-RBK
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: OCTOBER YEAR 1998
MONTH SEPTEMBER 98 OCTOBER 98
- --------------------------------------------------------------------------------
REVENUES (MOR-6) 0 0
INCOME BEFORE INT, DEPREC./ TAX (MOR-6) (982) (250)
NET INCOME (LOSS) (MOR-6) (986) (250)
PAYMENTS TO INSIDERS (MOR-9) 0 0
PAYMENTS TO PROFESSIONALS (MOR-9) 0 0
TOTAL DISBURSEMENTS (MOR-8) 195 250
*** 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 OCTOBER 98
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 0 0 0
Accounts Receivable, Net 0 0 0
Inventory: Lower of Cost or Market 0 0 0
Prepaid Expenses 50,000 50,000 50,000
Investments 0 0 0
Other 0 0 0
--------- --------- ---------
TOTAL CURRENT ASSETS 50,000 50,000 50,000
--------- --------- ---------
PROPERTY, PLANT & EQUIP, @ COST 0 0 0
Less Accumulated Depreciation 0 0 0
NET BOOK VALUE OF PP & E 0 0 0
OTHER ASSETS:
1. Tax Deposits 0 0 0
2. Investments in Subs 8,800,000 8,800,000 8,800,000
3. Organizational Costs 1,240 1,240 1,240
4. (attach list)
--------- --------- ---------
TOTAL ASSETS 8,851,240 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
08/27/98 SEPTEMBER 98 OCTOBER 98
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LIABILITIES & OWNERS
EQUITY
LIABILITIES
POST PETITION LIABILITIES (MOR-4) 982 1,232
PRE-PETITION LIABILITIES:
Notes Payable- Secured
Priority Debt 31,500 31,500 31,500
Federal Income Tax 0 0
FICA/Withholding 0 0
Unsecured Debt 3,841,314 3,841,314 3,841,314
Other
--------- --------- ---------
TOTAL PRE-PETITION LIABILITIES 3,872,814 3,872,814 3,872,814
--------- --------- ---------
TOTAL LIABILITIES 3,872,814 3,873,796 3,874,046
--------- --------- ---------
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK
COMMON STOCK 605 605 605
ADDITIONAL PAID-IN CAPITAL 6,688,322 6,688,322 6,688,322
RETAINED EARNINGS: Filing Date (1,710,501) (1,710,501) (1,710,501)
RETAINED EARNINGS: Post Filing Date (982) (1,232)
--------- --------- ---------
TOTAL OWNER'S EQUITY (NET WORTH) 4,978,426 4,977,440 4,977,440
--------- --------- ---------
TOTAL LIABILITIES &
OWNER'S EQUITY 8,851,240 8,851,240 8,851,240
========= ========= =========
</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 OCTOBER 98
- --------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLES 787 787
TAX PAYABLE:
Federal Payroll Taxes 0 0
State Payroll & Sales 0 0
Ad Valorem Taxes 0 0
Other Taxes 0 0
TOTAL TAXES PAYABLE 0 0
SECURED DEBT POST-PETITION 0 0
ACCRUED INTEREST PAYABLE
*ACCRUED PROFESSIONAL FEES:
OTHER ACCRUED LIABILITIES:
1.
2. ADVANCE 195 445
3.
TOTAL POST-PETITION --- -----
LIABILITIES (MOR-3) 982 1,232
=== =====
* 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 OCTOBER 1998
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES AD-VALOREM, OTHER
OTHER TAXES
- --------------------------------------------------------------------------------
0-30 250 0 250
31-60 982 787 195
61-90
91+
----- --- ---
TOTAL 1,232 787 445
===== === ===
AGING OF ACCOUNTS RECEIVABLE
MONTH SEPTEMBER 98 OCTOBER 98
- --------------------------------------------------------------------------------
0-30 DAYS 0 0
31-60 DAYS 0 0
61-90 DAYS 0 0
91+ DAYS 0 0
--- ---
TOTAL 0 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 OCTOBER 98 DATE
- --------------------------------------------------------------------------------
REVENUES (MOR-1) 0 0 0
TOTAL COST OF REVENUES 0 0 0
---- ---- -------
GROSS PROFIT 0 0 0
---- ---- -------
OPERATING EXPENSES:
Selling & Marketing 0 0 0
General & Administrative 982 250 1,232
Insiders Compensation 0 0 0
Professional Fees 0 0 0
Other (attach list) 0 0 0
---- ---- -------
TOTAL OPERATING EXPENSES 982 250 1,232
---- ---- -------
INCOME BEFORE INT, DEPR/TAX (MOR-1) (982) (250) (1,232)
INTEREST EXPENSE 0 0 0
DEPRECIATION
OTHER (INCOME) EXPENSES*
OTHER ITEMS **
TOTAL INT, DEPR & OTHER ITEMS 0 0 0
---- ---- -------
NET INCOME BEFORE TAXES (982) (250) (1,232)
FEDERAL INCOME TAXES
---- ---- -------
NET INCOME (LOSS) (MOR-1) (982) (250) (1,232)
==== ==== =======
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>
MONTH MONTH MONTH MONTH MONTH MONTH FILING TO
SEPTEMBER 98 OCTOBER 98 DATE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CASH RECEIPTS AND
DISBURSEMENTS
1. CASH - BEGINNING OF MONTH 195+ 0 195
RECEIPTS:
2. CASH SALES 0 0 0
3. COLLECTION OF ACCOUNTS RECEIVABLE 0 0 0
4. LOANS & ADVANCES (attach list) 0 0 0
5. SALE OF ASSETS 0 0 0
6. OTHER (ADVANCE FROM SUBSIDIARY
INC. NEVADA) 0 250 250
---- ---- ----
TOTAL RECEIPTS ** 250 250
---- ----
(Withdrawal) Contribution by Individual
Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 0 0 0
8. PAYROLL TAXES PAID 0 0 0
9. SALES,USE & OTHER TAXES PAID 0 0 0
10. SECURED / RENTAL / LEASES 0 0 0
11. UTILITIES 0 0 0
12. INSURANCE 0 0 0
13. INVENTORY PURCHASES 0 0 0
14. VEHICLE EXPENSES 0 0 0
15. TRAVEL & ENTERTAINMENT 0 0 0
16. REPAIRS, MAINTENANCE & SUPPLIES 0 0 0
17. ADMINISTRATIVE & SELLING 195 0 195
18. OTHER (attach list) 0 0 0
---- ---- ----
TOTAL DISBURSEMENTS FROM OPERATIONS 195 0 195
---- ---- ----
19. PROFESSIONAL FEES 0 0 0
20. U.S. TRUSTEE FEES 0 250 250
21. OTHER REORGANIZATION EXPENSES
(ATTACH LIST) 0 0 0
TOTAL DISBURSEMENTS** 195 0 445
---- ---- ----
22. NET CASH FLOW (195) 0 (195)
---- ---- ----
23. CASH - END OF MONTH (MOR-2) 0 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 OCTOBER
BANK NAME
ACCOUNT NUMBER #20053902 # #
ACCOUNT TYPE OPERATING PAYROLL TAX OTHER FUNDS TOTAL
- --------------------------------------------------------------------------------
BANK BALANCE 236 236
DEPOSIT IN TRANSIT 0 0
OUTSTANDING CHECKS 250 250
ADJUSTED BANK BALANCE (12) (12)
------ ------
BEGINNING CASH - PER BOOKS 1,238 1,238
RECEIPTS 5,481 5,481
TRANSFERS BETWEEN ACCOUNTS (6,481) (6,481)
(WITHDRAWAL) CONTRIBUTION - BY
INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS 260 260
------ ------
ENDING CASH - PER BOOKS (12) (12)
====== ======
*** 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 OCTOBER
98 98
- --------------------------------------------------------------------------------
1.
2.
3.
4.
5.
6.
--- ---
TOTAL INSIDERS (MOR-1) 0 0
=== ===
PROFESSIONALS MONTH MONTH MONTH MONTH MONTH MONTH
NAME/ORDER DATE SEPTEMBER OCTOBER
98 98
- --------------------------------------------------------------------------------
1.
2.
3.
4.
5.
6.
--- ---
TOTAL PROFESSIONALS (MOR-1) 0 0
=== ===
MOR-9 Revised 07/01/98
UNITED STATES BANKRUPTCY COURT
WESTERN DISTRICT OF TEXAS
SAN ANTONIO DIVISION
CASE NAME: Knight Equipment & Manufacturing Corp. Petition Date: 08/27/1998
CASE NUMBER: 98-54130RBK
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: OCTOBER YEAR 1998
MONTH SEPTEMBER OCTOBER
98 98
- --------------------------------------------------------------------------------
REVENUES (MOR-6) 196,843 245,332
INCOME BEFORE INT, DEPREC./ TAX (MOR-6) 66,557 100,577
NET INCOME (LOSS) (MOR-6) 43,650 81,704
PAYMENTS TO INSIDERS (MOR-9) 27,012 33,139
PAYMENTS TO PROFESSIONALS (MOR-9) 0 7,550
------- -------
TOTAL DISBURSEMENTS (MOR-8) 215,921 155,400
======= =======
*** 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 ( ) 8-28-99
LIABILITY YES (X) NO ( ) 8-28-99
VEHICLE YES (X) NO ( ) 8-28-99
WORKER'S YES (X) NO ( ) 8-28-99
- --------------------------------------------------------------------------------
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 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
08/27/98 SEPTEMBER 98 OCTOBER 98
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 94,343* 117,241 125,011
Accounts Receivable, Net 1,554,340 1,606,827 1,629,115
Inventory: Lower of Cost or Market 6,997,595 6,992,595 6,982,595
Prepaid Expenses 24,580 165,108 157,657
Investments
Other
---------- ---------- ----------
TOTAL CURRENT ASSETS 8,670,858 8,881,771 8,894,378
---------- ---------- ----------
PROPERTY, PLANT & EQUIP, @ COST 1,528,769** 1,534,072 1,534,072
Less Accumulated Depreciation 389,201 400,053 410,905
NET BOOK VALUE OF PP & E 1,139,568 1,134,019 1,123,167
OTHER ASSETS:
1. Tax Deposits - DEFERRED
CREDIT 64,044 64,044 64,044
2. Investments in Subs
3. Bond Issuance Cost; Net 113,858 113,588 113,588
4. Perry Gas Processor Files 35,000 35,000 35,000
---------- ---------- ----------
TOTAL ASSETS 10,023,328 10,228,422 10,230,177
========== ========== ==========
</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
08/27/98 SEPTEMBER 98 0CTOBER 98
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LIABILITIES & OWNERS EQUITY
LIABILITIES:
POST-PETITION LIABILITIES (MOR-4) 324,543 398,957
PRE-PETITION LABILITIES:
Notes Payable-Secured 2,755,328 2,750,590 2,736,099
Priority Debt 713,771 695,183 695,183
Federal Income Tax
FICA/Withholding 6,643 851 0
Unsecured Debt 6,198,744 6,064,866* 5,925,845
Other 2,436,612 2,436,509 2,436,509
---------- ---------- ----------
TOTAL PRE-PETITION LIABILITIES 12,111,098 11,947,999 11,793,636
---------- ---------- ----------
TOTAL LIABILITIES 12,111,098 12,272,542 12,192,593
---------- ---------- ----------
OWNERS'S EQUITY (DEFICIT):
PREFERRED STOCK
COMMON STOCK 1,111 1,111 1,111
ADDITIONAL PAID-IN CAPITAL 356,210 356,210 356,210
RETAINED EARNINGS: Filing Date (2,445,091) (2,445,091) (2,445,091)
RETAINED EARNINGS: Post Filing Date 43,650 125,354
---------- ---------- ----------
TOTAL OWNER'S EQUITY (NET WORTH) (2,087,770) (2,044,120) (1,962,416)
---------- ---------- ----------
TOTAL LIABILITIES & OWNER'S EQUITY 10,023,328 10,228,422 10,230,177
========== ========== ==========
</TABLE>
* Per Schedules and Statement of Affairs
* THE REDUCTION IN UNSECURED DEBT RESULTED FROM A REDUCTION OF $139,021 IN
UNEARNED REVENUE FROM A BALANCE OF $394,194 AT 9/30/98 TO $255,173 AT 10/31/98.
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>
Work in Progress
Earnings in Excess of Billings
October 1998
11-Nov-98
09:09:21 AM
Amoco 98-025
----------------------------
Billings to Date:
Intial Billing
Progress Billing 550,000.00
Progress Billing
Progress Billing
Progress Billing
Progress Billing
Retainage
Change Orders
----------
TL Billings to Date (10/31/98) 550,000.00 100.00%
Future Billings
Progress Billings 0.00
Progress Billings
Progress Billings
Retainage
Change Orders
----------
TL Future Billings 0.00 0.00%
---------- -------
TL Contract & Change Orders 550,000.00 100.00%
Costs to Date (10/31/98) 84,010.62
Paid by Customer
----------
Total Costs to Date (10/31/98) 84,010.62 55.28%
Estimated Future Costs:
Actual thru (11/11/98) 5,964.85
Paid by Customer
Estimated Additional Costs 62,004.00
----------
TL Estimated Future Costs 67,968.85 44.72%
---------- -------
TL Estimated Costs 151,979.47 100.00%
TL Contract & Change Orders 550,000.00
TL % Complete 55.28%
----------
304,026.86
TL Billings to Date (6/30/98) 550,000.00
----------
Earning in Excess of Billings (Current Accrual) (245,973.14)
<PAGE>
CASE NAME: Knight Equipment & Manufacturing Corp. CASE NUMBER: 98-54130-RBK
SCHEDULE OF POST-PETITION LIABILITIES
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH MONTH MONTH
SEPTEMBER 98 OCTOBER 98
- -----------------------------------------------------------------------------------------
<S> <C> <C>
TRADE ACCOUNTS PAYABLES 15,856 52,791
TAX PAYABLE:
Federal Payroll Taxes 7,770 2,553
State Payroll & Sales 244 462
Ad Valorem Taxes 245 245
Other Taxes
TOTAL TAXES PAYABLE 8,259 3,260
SECURED DEBT POST-PETITION 201,600 275,589
ACCRUED INTEREST PAYABLE 1,383 3,991
*ACCRUED PROFESSIONAL FEES: 0 0
OTHER ACCRUED LIABILITIES:
1. INTEREST & PENALTIES
ON PRE-PETITION TAXES 2,525 2,525
2. PAYROLL COSTS (NET OF
TAXES) 25,057 14,306
3. NOTE PAYABLE FOR FINANCED
INSURANCE 69,863 46,495
------- -------
TOTAL POST-PETITION LIABILITIES
(MOR-3) 324,543 398,957
======= =======
</TABLE>
* 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 OCTOBER 98
TRADE AD-VALOREM,
DAYS TOTAL ACCTS FED TAXES STATE TAXES OTHER TAXES OTHER
- --------------------------------------------------------------------------------
0-30 138,441 44,523 2,553 462 0 90,903
31-60 260,516 8,268* 0 0 245 252,003
61-90
91+
------- ------ ----- --- --- -------
TOTAL 398,957 52,791 2,553 462 245 342,906
======= ====== ===== === === =======
AGING OF ACCOUNTS RECEIVABLE
MONTH SEPTEMBER 98 OCTOBER 98
- --------------------------------------------------------------------------------
0-30 DAYS 52,487 22,563
31-60 DAYS 2,312 52,112
61-90 DAYS 14,895 5,812
91+ DAYS 1,546,636 1,558,031
--------- ---------
TOTAL 1,616,330 1,638,518
========= =========
* OF THE $8,268 TRADE ACCOUNTS PAYABLE OVER 31 DAYS OF OCTOBER 31, 1998, $3,995
WAS PAID IN NOVEMBER 1998. THE BALANCE OF $4,273 ARE INVOICES FOR RENTALS OF
LAND (STORAGE AND WORK YARDS) OFFICE EQUIPMENT (COPIERS) AND AUTOMOBILES
(WHICH WERE SUBSEQUENTLY RETURNED).
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 OCTOBER 98 DATE
98
- --------------------------------------------------------------------------------
REVENUES (MOR-1) 196,843 245,332 442,175
TOTAL COST OF REVENUES 67,321 87,565 154,886
------- ------ -------
GROSS PROFIT 129,522 157,767 287,289
======= ====== =======
OPERATING EXPENSES:
Selling & Marketing 0 0 0
General & Administrative 35,942 16,501 52,443
Insiders Compensation 27,012 33,139 60,151
Professional Fees 11 7,550 7,561
Other (attach list) 0 0
------- ------ -------
TOTAL OPERATING EXPENSES 62,965 57,190 120,155
======= ====== =======
INCOME BEFORE INT, DEPR/TAX (MOR-1) 66,557 100,577 167,134
INTEREST EXPENSE 12,055 8,021 20,076
DEPRECIATION 10,852 10.852 21,704
OTHER (INCOME) EXPENSES* 0 0
OTHER ITEMS** 0 0
TOTAL INT, DEPR & OTHER ITEMS 22,907 18,873 41,780
------- ------ -------
NET INCOME BEFORE TAXES 43,650 81,704 125,354
FEDERAL INCOME TAXES 0 0 0
------- ------ -------
NET INCOME (LOSS) (MOR-1) 43,650 81,704 125,354
======= ====== =======
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>
MONTH MONTH MONTH MONTH MONTH MONTH FILING TO
SEPTEMBER 98 OCTOBER 98 DATE
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
CASH RECEIPTS AND
DISBURSEMENTS
1. CASH - BEGINNING OF MONTH 94,343 117,241 94,343
======= ======= =======
RECEIPTS:
2. CASH SALES 27,953 86,596 114,459
3. COLLECTION OF ACCOUNTS RECEIVABLE
4. LOANS & ADVANCES (attach list) 201,600 73,389 275,989
5. SALE OF ASSETS
6. OTHER (attach list) 9,266 2,675 11,941
------- ------- -------
TOTAL RECEIPTS** 238,819 163,170 401,989
======= ======= =======
(Withdrawal) Contribution by Individual
Debtor MFR-2*
DISBURSEMENTS:
7. NET PAYROLL 88,038 71,850 159,888
8. PAYROLL TAXES PAID 25,079 23,605 48,684
9. SALES,USE & OTHER TAXES PAID 1,060 99 1,159
10. SECURED / RENTAL / LEASES 16,011 4,582 20,593
11. UTILITIES 12,265 5,905 18,170
12. INSURANCE 60,890 17,185 78,075
13. INVENTORY PURCHASES
14. VEHICLE EXPENSES 2,346 300 2,646
15. TRAVEL & ENTERTAINMENT 4,023 2,853 6,876
16. REPAIRS, MAINTENANCE & SUPPLIES 3,160 27,521 30,681
17. ADMINISTRATIVE & SELLING 3,049 0 3,049
18. OTHER (attach list)
------- ------- -------
TOTAL DISBURSEMENTS FROM OPERATIONS 215,921 153,900 369,821
======= ======= =======
19. PROFESSIONAL FEES 0
20. U.S. TRUSTEE FEES 0 1,500 1,500
21. OTHER REORGANIZATION EXPENSES (ATTACH LIST) 0
------- ------- -------
TOTAL DISBURSEMENTS** 215,921 155,400 371,321
======= ======= =======
22. NET CASH FLOW 22,898 7,770 30,668
23. CASH - END OF MONTH (MOR-2) 117,241 125,011 125,011
</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>
Knight Equipment & Manufacturing Corp.
Case Number: 98-54130-RBK
Form MOR-7 - October 1998
Cash Receipts
Supportive Detail
Date Payee Description Amount
---- ----- ----------- ------
Receipts Detail
Item 2 - Cash Sales:
05-Oct-98 W W Wood Crane Rental (W/ Operator) 375
05-Oct-98 Waukeshaw Pierce Scap Sale 1,903
16-Oct-98 K & D Sales 20,000 Gal Propane Tank 8,000
16-Oct-98 Commercial Metals Scap Sale 21,100
20-Oct-98 Gulf Port Rental Income 3,500
20-Oct-98 Luxor 2 Used Compressor Cylinders 15,000
23-Oct-98 Larry Slaughter Small Portable Building 6,435
29-Oct-98 Court Reporting Photo Copies 43
30-Oct-98 NBSM Scap Sale 750
30-Oct-98 Ferex Metals Scap Sale 28,754
30-Oct-08 Nabarrette Scap Sale 646
-------
Total Cash Sales 86,506
Item 4 - Loans & Advances:
02-Oct-98 Sable Capital Partners Dip Loan Advance 39,736
09-Oct-98 Sable Capital Partners Dip Loan Advance 1,000
14-Oct-98 Sable Capital Partners Dip Loan Advance 33,253
-------
Total Loans & Advances: 73,989
Item 6 - Other:
13-Oct-98 A. I. Credit Refund received in error 2,675
-------
Total Other 2,675
-------
Total Receipts 163,170
=======
<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
ACCOUNT NUMBER #20052910 # #
ACCOUNT TYPE OPERATING PAYROLL TAX OTHER FUNDS TOTAL
--------- ------- --- ----------- -----
BANK BALANCE 63,695 0 0 99,316 163,011
DEPOSIT IN TRANSIT 0 0 0 0 0
OUTSTANDING CHECKS 38,000 0 0 0 38,000
ADJUSTED BANK BALANCE 25,695 0 0 99,316 125,011
BEGINNING CASH - PER BOOKS 7,925 0 0 99,316 117,241
RECEIPTS 163,170 0 0 0 163,170
TRANSFERS BETWEEN ACCOUNTS 0 0 0 0 0
(WITHDRAWAL) CONTRIBUTION - BY 0 0 0 0 0
INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS 155,400 0 0 0 155,400
ENDING CASH - PER BOOKS 25,695 0 0 99,316 125,011
</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 OCTOBER
98 98
- --------------------------------------------------------------------------------
1. DERAL KNIGHT - CEO - SALARY 9,926 12,407
2. DERAL KNIGHT - CEO - AUTO 1,746 1,746
3. BARRY LAIDLAW - PRES. -SALARY 5,385 6,731
4. BARRY LAIDLAW - PRES. - AUTO 755 755
5. SCOTT KALISH - TREAS. - SALARY 6,000 7,500
6. SHIRLEY J. BOYLE - SEC. - SALARY 3,200 4,000
------ ------
TOTAL INSIDERS (MOR-1) 27,012 33,139
====== ======
PROFESSIONALS MONTH MONTH MONTH MONTH MONTH MONTH
NAME/ORDER DATE SEPTEMBER OCTOBER
98 98
- --------------------------------------------------------------------------------
1. The PWS Group 7,500*
2.
3.
4.
5.
6.
--- -----
TOTAL PROFESSIONALS (MOR-1) 0 7,550
=== =====
* Application of Prepayment, Non Cash Transaction
MOR-9
