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
May 11, 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 May 11, 1999, the Company filed its Monthly Operating Report for the
month ending March 31, 1999 (the "March MOR") with the Office of the United
States Trustee (the "Trustee") and the Bankruptcy Court.
A copy of the March MOR is attached hereto as Exhibit 99.1, and
incorporated herein by reference.1
- ------------------------
1 The attachments and exhibits referenced in the March 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
March 31, 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
Case No.: 97-02395PJW Thru 97-02401PJW Accrual Basis-1
OFFICE OF THE UNITED STATES TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
for the month ending March, 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 April 29, 1999
- --------------------------------- ---------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Tom Matta Accounting Manager
- --------------------------------- ---------------------------------
SIGNATURE OF PREPARER TITLE
Tom Matta April 29, 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
<TABLE>
<CAPTION>
ASSETS Month Month Month
1/31/99 2/28/99 3/31/99
<S> <C> <C> <C>
1 Cash $720,606 $696,626 $674,614
2 Accounts Receivable (Net) 965,044 965,044 965,044
3 Inventory 34,190 34,190 34,190
4 Notes Receivable - - -
5 Prepaid Expenses 15,166 15,166 15,166
6 Other (Attach List) - - -
7 Total Current Assets 1,735,006 1,711,026 1,689,014
8 Property, Plant & Equipment 10,454,993 10,454,993 10,454,993
9 Less: Accumulated Depreciation/Depletion 5,811,127 5,811,127 5,811,127
10 Net Property, Plant & Equipment 4,643,866 4,643,866 4,643,866
11 Due From Affiliates & Insiders - - -
12 Intangibles (Attach List) - - -
12a Debt Issuance Cost - - -
13 Other (Attach List) 2,024,310 2,024,310 2,024,310
14 Total Assets $8,403,182 $8,379,202 $8,357,190
POSTPETITION LIABILITIES
15 Accounts Payable 5,386,224 5,380,760 5,380,759
15a Accrued Telecommunications Costs 967,430 967,430 967,430
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 6,353,654 6,348,190 6,348,189
PREPETITION LIABILITIES
23. Secured Debt 4,267,093 4,267,093 4,267,093
24. Priority Debt (Attach List) 91,675 91,675 91,675
24a Redeemable Preferred Stock 1,620,000 1,620,000 1,620,000
25 Unsecured Debt 47,444,515 47,444,515 47,444,515
26 Other (Attach List) - - -
27 Total Prepetition Liabilities 53,423,283 53,423,283 53,423,283
28 Total Liabilities 59,776,937 59,771,473 59,771,472
EQUITY
29 Owner's Prepetition Equity (12,258,875) (12,258,875) (12,258,875)
30 Postpetition Cumulative Profit or (Loss) (39,114,880) (39,133,396) (39,155,406)
31. Total Equity (Deficit) (51,373,755) (51,392,271) (51,414,281)
32 Total Liabilities & Owner's Equity $8,403,182 $8,379,202 $8,357,191
</TABLE>
<PAGE>
In Re: SA Telecommunications, Inc. Accrual Basis-2
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW)
<TABLE>
<CAPTION>
Month Month Month
1/31/99 2/28/99 3/31/99
<S> <C> <C> <C>
6 Other Current Assets
A/R-Jack Matz 0 0 0
A/R Prarie Systems, Inc. 0 0 0
A/R Line Costs 0 0 0
Long Distance Network N/R 0 0 0
----------------------------------------
0 0 0
========================================
12 Intangibles
Goodwill (net of amortization) 0 0 0
========================================
13 Other Non-Current Assets
Prepaid Employee Settlement (net) 0 0 0
Security Deposits & Miscellaneous 2,024,310 2,024,310 2,024,310
----------------------------------------
2,024,310 2,024,310 2,024,310
========================================
21 Other Post-Petition Liabilities
Accr Payroll/Payroll Taxes/Benefits 0 0 0
Accr Medical Ins 0 0 0
Accr Property Taxes 0 0 0
----------------------------------------
0 0 0
========================================
24 Priority Debt
Accrued Payroll/Employee Benefits 20,513 20,513 20,513
Accrued Property Taxes 71,162 71,162 71,162
Accrued Sales Taxes 0 0 0
----------------------------------------
91,675 91,675 91,675
========================================
</TABLE>
<PAGE>
Case No. Nos.-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -3
SA TELECOMMUNICATIONS, INC.
INCOME STATEMENT
<TABLE>
<CAPTION>
Month Month Month
January, 1999 February, 1999 March, 1999
------------- -------------- -----------
<S> <C> <C> <C>
REVENUES
1 Gross Revenues 0 0 0
2 Less: Returns & Discounts
3 Net Revenue 0 0 0
COST OF GOODS SOLD
4 Beginning Inventory
5 Add: Purchases
6 Less: Ending Inventory
7 Cost Of Goods Sold
8 Gross Profit 0 0 0
OPERATING EXPENSES
9 Officer/Insider Compensation 4,133 8,147 8,147
10 Direct Labor/Salaries 3,223 3,223 3,223
11 Payroll Taxes 1,151 1,151
12 Rent & Lease Expense 2,332 665 665
13 Insurance
14 Depreciation/Amortization - - -
15 General & Administrative 10,145 3,040 9,045
16 Other (Attach List) - - -
17 Total Operating Expenses 19,833 16,226 22,231
18 Operating Income (19,833) (16,226) (22,231)
OTHER INCOME & EXPENSES
19 Other Income (Attach List)
20 Other Expenses (Attach List)
21 Interest Expense
22 Other 38,019 1,797 1,980
23 Net Other Income & Expenses 38,019 1,797 1,980
REORGANIZATION EXPENSES
24 Professional Fees (1,798) (4,085) (1,760)
25 U.S. Trustee Fees
26 Other (Attach List)
27 Total Reorganization Expenses
28 Income Tax
29 NET PROFIT (LOSS) 16,388 (18,514) (22,011)
</TABLE>
<PAGE>
Case Nos. 97-2395 (PJW) THROUGH 97-2401 (PJW) Accrual Basis -4
CASH RECEIPTS AND DISBURSEMENTS
<TABLE>
<CAPTION>
TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL SATEL TOTAL
A/P MAIN OPER. P/R GREYROCK MISC. CD & NEC PETTY CASH SATEL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. BEG. BAL (1,202.92) 31,724.98 - - 79,770.46 586,333.35 - 696,625.87
2. CASH - - - - - - - -
SALES
3. RECEIPTS - - - - - 1,979.77 - 1,979.77
4. LOANS & - - - - - - - -
ADVANCES
5. SALE - - - - - - - -
ASSETS
6. (OTHER)
PAYDOWNS
ON
REVOLVER 253.00 78,448.33 - - (75,000.00) - - 3,701.33
------- ---------- --- --- ---------- ---------- --- ----------
7. TOTAL
RECEIPTS 253.00 78,448.33 - - (75,000.00) 1,979.77 - 5,681.10
8. TOTAL
CASH AVAIL. (949.92) 110,173.31 - - 4,770.46 588,313.12 - 702,306.97
------- ---------- --- --- ---------- ---------- --- ----------
*DISBURSE-
MENTS - (27,692.88) - - - - (27,692.88)
EOM
BALANCE (949.92) 82,480.43 - - 4,770.46 588,313.12 - 674,614.09
------- ---------- --- --- ---------- ---------- --- ----------
</TABLE>
* See attached detail of disbursements by check number, date, payee and amount.
<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
<TABLE>
<CAPTION>
0 - 30 31 - 60 61 - 90 91+
DAYS DAYS DAYS DAYS TOTAL
- ---------------------- ------------------ ------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE $ 5,380,759 $ - $ - $ - $ 5,380,759
</TABLE>
STATUS OF POSTPETITION TAXES
<TABLE>
<CAPTION>
BEGINNING AMOUNT ENDING
TAX WITHHELD AMOUNT TAX DELINQUENT
LIABILITY* OR ACCRUED* PAID LIABILITY TAXES
<S> <C> <C> <C> <C> <C>
FEDERAL
Withholding** 13,311 1,909 2,863 12,356
FICA-Employee** 6,423 767 1,151 6,040
FICA-Employer** 6,423 767 1,151 6,040
Unemployment 1,006 - - 1,006
Income
Other (Attach List)
Total Federal Taxes 27,163 3,444 5,165 25,442 -
STATE AND LOCAL
Withholding - - - -
Sales 451,319* - - 451,319
Excise
Unemployment 6,714 - - 6,714
Real Property
Personal Property
Other (Attach List)
Total State & Local 458,033 - - 458,033 -
Total Taxes 485,196 3,444 5,165 483,475 -
</TABLE>
* 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
<PAGE>
Case Nos. 97-972395 (PJW) SA TELECOMMUNICATIONS, INC. ACCRUAL BASIS - 6
THROUGH 02401 (PJW)
<TABLE>
<CAPTION>
BANK RECONCILIATIONS Acct #1 Acct #2 Acct #3
USC USC USC
A. Bank Wells Fargo Wells Fargo Wells Fargo
B. Acct # 4311-269112 4311-269120 4311-269138
C. Purpose A/P Operating Payroll
--- --------- -------
<S> <C> <C> <C>
1 Balance per Bank Statement - 82,515.93 -
2 + Deposits not credited - -
3 - Outstanding Checks (1,770.07) - -
4 +/- Other Reconciling items 820.15 (35.50) -
============== ================ ==============
5 Month End Balance per books (949.92) 82,480.43 -
============== ================ ==============
BANK RECONCILIATIONS Acct #4 Acct #7 Acct #10 Acct #11
NEC USC AddTel AddTel
A. Bank Various Wells Fargo Wells Fargo Wells Fargo
B. Acct # Various 4311-269146 0933 051211 1290-000025-000
C. Purpose Misc.Depository Insurance Operating CD
--------------- --------- --------- --
<S> <C> <C> <C> <C>
1 Balance per Bank Statement 588,313.12 2,107.28 - -
2 + Deposits not credited
3 - Outstanding Checks - (635.28) -
4 +/- Other Reconciling items - 3,298.46 -
============== =============== ================ ===============
5 Month End Balance per books 588,313.12 4,770.46 - -
============== =============== ================ ===============
</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>
<CAPTION>
Insiders
Cumulative
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 Payroll Resigned
3 Jeffery M. Petrie VP-Telemarketing Payroll Resigned
4 Windle R. Ewing VP-Tariffs and Reg. Affair Payroll 5,577.68
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 Payroll Resigned
Total Payments to Insiders $5,577.68
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS
Date of Court Total
Type of Order Authorizing Amount Amount Paid
Name Professional Payment Approved Paid To Date
---------------- --------------------- --------------------- -------------- --------------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
1
2 None None None None None
3
4
Total Payments to Professionals
</TABLE>
ADEQUATE PROTECTIONS PAYMENTS
Scheduled Monthly Amounts Paid Total Unpaid
Name of Creditor Payments Due During the Month Post Petition
1 None None -
2
3
4
5
Total $ - $ -
<PAGE>
97-02395PJW THRU 97- 02401PJW ACCRUAL BASIS - 8
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------ ---------- ----------
QUESTIONNAIRE YES NO
- ------------------------------------------------------------------------------------ ---------- ----------
- ------------------------------------------------------------------------------------ ---------- ----------
<S> <C> <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
- ------------------------------------------------------------------------------------ ---------- ----------
</TABLE>
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.
<TABLE>
<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.
- ------------------------------------------------------------------------------------ ---------- ----------
</TABLE>
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>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
INSURANCE POLICIES
- ----------------------------------------------------------------------------------------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
- ---------------------- --------------------- ------------------------------------ ------------------------------
<S> <C> <C> <C>
- ---------------------- --------------------- ------------------------------------ ------------------------------
See schedule of current policies.
attached
- ---------------------- --------------------- ------------------------------------ ------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
- ---------------------- --------------------- ------------------------------------ ------------------------------
</TABLE>
<PAGE>
Case Nos. 97-2395(PJW) THROUGH 97-2401(PJW) Accrual Basis -9
SA Telecommunications, Inc.
and Subsidiaries
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PERSONNEL
- -------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------- --------------------- ----------------------
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:
