UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Sections 13 and 15(d) of
the Securities Exchange Act of 1934
June 16, 1999
Date of Report (Date of earliest event reported)
SA TELECOMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-18048 75-2258519
(State Of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
1600 Promenade Center, 15th Floor
Richardson, TX 75080
(Address of Principal Executive Office)
(972) 690-5888
(Registrant's Telephone Number, Including Area Code)
(Not Applicable)
(Former Name or Former Address,
if Changed Since Last Report)
<PAGE>
ITEM 5. OTHER EVENTS
As previously reported, SA Telecommunications, Inc. and its
subsidiaries (collectively, the "Company") filed petitions for relief under
Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") in the
United States Bankruptcy Court for the District of Delaware (the "Bankruptcy
Court") (Cases No. 97-2395 through 97-2401). Since that date, the Company has
continued as a debtor-in-possession pursuant to the Bankruptcy Code.
On June 16, 1999, the Company filed its Monthly Operating Report for
the month ending April 30, 1999 (the "April MOR") with the Office of the United
States Trustee (the "Trustee") and the Bankruptcy Court.
A copy of the April MOR is attached hereto as Exhibit 99.1 and
incorporated herein by reference.<F1>
- ------------------------
<F1> The attachments and exhibits referenced in the April MOR are not attached
as part of Exhibit 99.1, but are available at the Office of the United
States Trustee and the Bankruptcy Court. In addition, the Company agrees
that it will furnish a copy of any omitted schedule or similar attachment
to the Commission upon its request.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits:
99.1 Monthly Operating Report of the Company for the month ending
April 30, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SA TELECOMMUNICATIONS, INC.
DATE: June 29, 1999 By: /s/ Albert B. Gordon, Jr.
-------------------------
Albert B. Gordon, Jr.
Chief Executive Officer
Accrual Basis-1
Case No.: 97-02395PJW Thru 97-02401PJW
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
for the month ending April, 1999
Document Previously Explanation
Required Attachments: Attached Submitted Attached
1. Tax Receipts ( ) (X) ( )
2. Bank Statements (X) ( ) ( )
3. Most recently filed ( ) (X) ( )
Income Tax Return
4. Most recent Annual (X) ( ) ( )
Financial Statements
prepared by accountant
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE
UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING
REPORT (ACCRUAL BASIS - 1 THROUGH ACCRUAL BASIS - 9) AND THE ACCOMPANYING
ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT
AND COMPLETE. DECLARATION OF PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON
ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ Windle R. Ewing Vice President
- --------------------------------- -----------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
Windle R. Ewing June 9, 1999
- --------------------------------- -----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- ---------------------------------- -----------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta June 9, 1999
- ---------------------------------- -----------------------------------
PRINTED NAME OF PREPARER DATE
All Chapter 11 debtors must file this report with
the Court and serve a copy on the United
States Trustee no later than the 15th day of
the month following the end of the month
covered by the report.
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis -2
Case Nos. 97-2395 (PJW) through 97-2401 (PJW)
COMPARATIVE BALANCE SHEET
ASSETS Month
4/30/99
1 Cash $ 687,703
2 Accounts Receivable (Net) 965,044
3 Inventory 34,190
4 Notes Receivable -
5 Prepaid Expenses 15,166
6 Other (Attach List) -
7 Total Current Assets 1,702,103
8 Property, Plant & Equipment 10,454,993
9 Less: Accumulated
Depreciation/Depletion 5,811,127
10 Net Property, Plant & Equipment 4,643,866
11 Due From Affiliates & Insiders -
12 Intangibles (Attach List) -
12a Debt Issuance Cost -
13 Other (Attach List) 2,024,310
14 Total Assets $8,370,279
POSTPETITION LIABILITIES
15 Accounts Payable 5,380,758
15a Accrued Telecommunications Costs 967,430
16 Taxes Payable -
16a Accrued Taxes Payable -
17 Notes Payable -
18 Professional Fees -
19 Secured Debt -
20 Due To Affiliates & Insiders -
21 Other (Attach List) -
22 Total Postpetition Liabilities 6,348,188
PREPETITION LIABILITIES
23. Secured Debt 4,267,093
24. Priority Debt (Attach List) 91,675
24a Redeemable Preferred Stock 1,620,000
25 Unsecured Debt 47,444,515
26 Other (Attach List) -
27 Total Prepetition Liabilities 53,423,283
28 Total Liabilities 59,771,471
EQUITY
29 Owner's Prepetition Equity (12,258,875)
30 Postpetition Cumulative
Profit or (Loss) (39,142,317)
31 Total Equity (Deficit) (51,401,192)
32 Total Liabilities & Owner's Equity $ 8,370,279
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA TELECOMMUNICATIONS, INC.
INCOME STATEMENT
Month
April, 1999
REVENUES
1 Gross Revenues 0
2 Less: Returns & Discounts
3 Net Revenue 0
COST OF GOODS SOLD
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold
8 Gross Profit 0
OPERATING EXPENSES
9 Officer/Insider Compensation 8,147
10 Direct Labor/Salaries 5,566
11 Payroll Taxes 1,891
12 Rent & Lease Expense 2,390
13 Insurance
14 Depreciation/Amortization -
15 General & Administrative (30,938)
16 Other (Attach List) -
17 Total Operating Expenses (12,944)
18 Operating Income 12,944
OTHER INCOME & EXPENSES
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense
22 Other 1,900
23 Net Other Income & Expenses 1,900
REORGANIZATION EXPENSES
24 Professional Fees (1,756)
25 U.S. Trustee Fees
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 NET PROFIT (LOSS) 13,088
<PAGE>
<TABLE>
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
Accrual Basis -4
CASH RECEIPTS AND
DISBURSEMENTS
<CAPTION>
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL
A/P MAIN OPER. P/R GREYROCK MISC. CD & NEC PETTY CASH
--- ---------- --- -------- ----- -------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. BEG. BAL (949.92) 82,480.43 -- -- 4,770.46 588,313.12 -- 674,614.09
2. CASH -- -- -- -- -- -- -- --
SALES
3. RECEIPTS -- -- -- -- -- 1,900.24 -- 1,900.24
4. LOANS & -- -- -- -- -- -- -- --
ADVANCES
5. SALE -- -- -- -- -- -- -- --
ASSETS
6. (OTHER)
PAYDOWNS
ON
REVOLVER (10,830.29) 41,169.05 -- -- -- -- -- 30,338.76
--------- --------- -------- -------- -------- ---------- -------- ----------
7. TOTAL
RECEIPTS (10,830.29) 41,169.05 -- -- -- 1,900.24 -- 32,239.00
8. TOTAL
CASH AVAIL. (11,780.21) 123,649.48 -- -- 4,770.46 590,213.36 -- 706,853.09
--------- --------- -------- -------- -------- ---------- -------- ----------
*DISBURSE--
MENTS -- (19,150.51) -- -- -- -- -- (19,150.51)
EOM
BALANCE (11,780.21) 104,498.97 -- -- 4,770.46 590,213.36 -- 687,702.58
--------- --------- -------- -------- -------- ---------- -------- ----------
* See attached detail of disbursements by check number, date, payee and amount.
</TABLE>
<PAGE>
Debtor: SA Telecommunications, Inc. and Subsidiaries Accrual Basis-5
Case No: 97-2395 through 97-2401
ACCOUNTS RECEIVABLE AGING
0 - 30 days old $ 965,044
31 - 60 days old -
61 - 90 days old -
91 + days old -
Total Accounts Receivable $ 965,044
Amount Considered Uncollectable -
Account Receivable $ 965,044
AGING OF POSTPETITION ACCOUNTS PAYABLE
0 - 30 31 - 60 61 - 90 91+
DAYS DAYS DAYS DAYS TOTAL
- --------------------------------------------------------------------------------
ACCOUNTS PAYABLE 5,380,758 $ - $ - $ - $5,380,758
<TABLE>
STATUS OF POSTPETITION TAXES
<CAPTION>
BEGINNING AMOUNT ENDING
TAX WITHHELD AMOUNT TAX DELINQUENT
LIABILITY* OR ACCRUED* PAID LIABILITY TAXES
<S> <C> <C> <C> <C>
FEDERAL
- -------
Withholding** 12,356 2,863 1,909 13,311
FICA-Employee** 6,040 1,151 767 6,423
FICA-Employer** 6,040 1,151 767 6,423
Unemployment 1,006 1,006
Income
Other (Attach List)
Total Federal Taxes 25,442 5,165 3,444 27,163 -
STATE AND LOCAL
- ---------------
Withholding - - - -
Sales 451,319* - 37,854 413,465
Excise
Unemployment 6,714 - - 6,714
Real Property
Personal Property
Other (Attach List)
Total State & Local 458,033 - 37,854 420,179 -
Total Taxes 483,475 5,165 41,297 447,343 -
* The beginning liability for state and local sales tax includes an adjustment
for $260,817 reclassed from prepetition sales tax
* The beginning tax liability should represent the liability from the prior
month or, if this is the first operating report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt
to verify payment or deposit
</TABLE>
<PAGE>
<TABLE>
Case Nos. 97-972395 (PJW) THROUGH 02401 (PJW) SA TELECOMMUNICATIONS, INC> ACCRUAL BASIS - 6
<CAPTION>
BANK RECONCILIATIONS Acct #1 Acct #2 Acct #3 Acct #4 Acct #7 Acct #10 Acct #11
USC USC USC NEC USC AddTel AddTel
A. Bank Wells Fargo Wells Fargo Wells Fargo Various Wells Fargo Wells Fargo Wells Fargo
B. Acct # 4311-269112 4311-269120 4311-269138 Various 4311-269146 0933 051211 1290-000025-000
C. Purpose A/P Operating Payroll Misc. Depository Insurance Operating CD
--- --------- ------- ---------------- --------- --------- --
<S> <C> <C> <C> <C> <C> <C> <C>
1 Balance per Bank
Statement - 104,534.47 - 590,213.36 2,107.28 - -
2 + Deposits not credited - -
3 - Outstanding Checks (12,599.76) - - - (635.28) -
4 +/- Other Reconciling 819.55 (35.50) - - 3,298.46 -
items ------------------------------------------------------------------------------------------------------
5 Month End Balance per (11,780.21) 104,498.97 - 590,213.36 4,770.46 - -
books ======================================================================================================
</TABLE>
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 972401 (PJW) ACCRUAL BASIS - 7
SA Telecommunications, Inc.
and Subsidiaries
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS
(AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE BANKRUPTCY CODE) AND TO
PROFESSIONALS FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID
(e.g. SALARY, BONUS, COMMISSION, INSURANCE, HOUSING ALLOWANCE, TRAVEL CAR
ALLOWANCE, ETC.) ATTACH ADDITIONAL SHEETS IF NECESSARY.
<TABLE>
Insiders
Cumulative
<CAPTION>
Type of Amount Unpaid
Name Position Payment Paid Balance
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 Igor Mamantov VP-Corp Development Payroll Resigned
2 Dennis Lee Gundy VP-Operations Bonus Resigned
3 Jeffery M. Petrie VP-Telemarketing Bonus Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll/Bonus 6,201.75
5 Thomas J. Brighi VP-Telemarketing Payroll Resigned
6 George M. Trevino Controller Payroll Resigned
7 Kellie Watts Asst. General Counsel Payroll Resigned
8 Julie Judd HR Administrator Payroll Resigned
9 Cheryl Leahy Asst. Controller Payroll Resigned
10 Chuck Leblo Bonus Resigned
Total Payments to Insiders $ 6,201.75
</TABLE>
<TABLE>
PROFESSIONALS
<CAPTION>
Date of Court Total
Type of Order Authorizing Amount Amount Paid
Name Professional Payment Approved Paid To Date
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1
2 None None None None None
3
4
Total Payments to Professionals
</TABLE>
<TABLE>
ADEQUATE PROTECTIONS PAYMENTS
<CAPTION>
Scheduled Monthly Amounts Paid Total Unpaid
Name of Creditor Payments Due During the Month Post Petition
<S> <C> <C> <C>
1 None None -
2
3
4
5
Total $ - $ -
</TABLE>
<PAGE>
<TABLE>
ACCRUAL EASIS-8
97-02395PJW THRU 97- 02401PJW
<CAPTION>
- ------------------------------------------------------------------------------------- ---------- ----------
QUESTIONNAIRE YES NO
- ------------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
1. Have any assets been sold or transferred outside the normal course of
business this recording period? X
- ------------------------------------------------------------------------------------- ---------- ----------
2. Have any funds been disbursed from any account other
than a debtor in possession account? X (1)
- ------------------------------------------------------------------------------------- ---------- ----------
3. Are any postpetition receivables (accounts, notes, or
loans) due from related parties? X
- ------------------------------------------------------------------------------------- ---------- ----------
4. Have any payments been made on prepetition liabilities
this reporting period? X (2)
- ------------------------------------------------------------------------------------- ---------- ----------
5. Have any postpetition loans been received by the debtor
from any party? X (3)
- ------------------------------------------------------------------------------------- ---------- ----------
6. Are any postpetition payroll taxes past due? X
- ------------------------------------------------------------------------------------- ---------- ----------
7. Are any postpetition state or federal income taxes past
due? X
- ------------------------------------------------------------------------------------- ---------- ----------
8. Are any postpetition real estate taxes past due? X
- ------------------------------------------------------------------------------------- ---------- ----------
9. Are any other postpetition taxes past due? X
- ------------------------------------------------------------------------------------- ---------- ----------
10. Are any amounts owed to postpetition creditors past due?
X
- ------------------------------------------------------------------------------------- ---------- ----------
11. Have any prepetition taxes been paid during the
reporting period? X
- ------------------------------------------------------------------------------------- ---------- ----------
12. Are any wage payments past due? X
- ------------------------------------------------------------------------------------- ---------- ----------
If the answer to any of the above questions is "YES", provide a detailed
explanation of each item. Attach additional sheets if necessary.
(1) Prepetition accounts retained during this period per court order.
(2) Only items such as payroll and benefits approved by court order.
(3) Only amounts per D.I.P. Financing Agreement approved by court order.
<CAPTION>
- ------------------------------------------------------------------------------------- ---------- ----------
INSURANCE YES NO
- ------------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE
COVERAGES IN EFFECT? X
- ------------------------------------------------------------------------------------- ---------- ----------
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT?
X
- ------------------------------------------------------------------------------------- ---------- ----------
3. PLEASE ITEMIZE POLICIES BELOW.
- ------------------------------------------------------------------------------------- ---------- ----------
If the answer to any of the above questions is "no", or if any policies have been canceled
or not renewed during this reporting period, provide an explanation below. Attached
additional sheets if necessary.
</TABLE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------
INSURANCE POLICIES
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
- ------------------------ --------------------- ------------------------------------ ------------------------------
<S> <C> <C> <C>
See attached schedule of current policies.
- ------------------------ --------------------- ------------------------------------ ------------------------------
- ------------------------ --------------------- ------------------------------------ ------------------------------
- ------------------------ --------------------- ------------------------------------ ------------------------------
</TABLE>
<PAGE>
<TABLE>
Case Nos. 97-2395(PJW) THROUGH 97-2401(PJW) Accrual Basis -9
SA Telecommunications, Inc.
and Subsidiaries
- --------------------------------------------------------------------------------------------------------------------------------
PERSONNEL
- ----------------------------------------------------------------------------------- --------------------- ----------------------
<CAPTION>
Full Time Part Time
Total Total
<S> <C> <C> <C>
1. Total number of employees at beginning of period 2 -
2. Total number of employees hired during the period - -
3. Number of employees terminated or resigned during the period - -
4. Total number of employees on payroll at end of period 2 -
- ----------------------------------------------------------------------------------- --------------------- ----------------------
</TABLE>
- --------------------------------------------------------------------------------
Change of Address
- --------------------------------------------------------------------------------
If your mailing address has changed and you have not previously
notified the United States Trustee of the change, list your new address
below:
DATE OF CHANGE: ______________________
NEW ADDRESS:
