<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported)
May 22, 1996 (May 15, 1996)
CRAY COMPUTER CORPORATION
(Name of Registrant as specified in its charter)
Delaware
(State of Incorporation)
84-1120275
(I.R.S. Employer Identification Number)
202 East Cheyenne Mountain Blvd., Colorado Springs, CO 80906
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (719) 579-6464
<PAGE>
Item 5. Other Events.
- ------ ------------
On May 16, 1996, following a hearing held on May 15, 1996, the United States
Bankruptcy Court for the State of Colorado issued its Order Confirming Plan and
Authorizing the Conveyance of Certain Property Pursuant Thereto Free and Clear
of Liens and Encumbrances. The Order approved the sale of the Registrant's
manufacturing building, which was its principal remaining asset, for a price of
$7,300,000. It also approved the appointment of Terry A. Willkom, the
Registrant's President and Chief Operating Officer, to serve as the Liquidating
Trustee pursuant to the Registrant's Liquidating Plan of Reorganization. The
Registrant anticipates that all secured and priority creditors will be paid in
full, that unsecured creditors will receive between $.80 and $.90 for each
dollar found to be owed to them, and that holders of Registrant's equity
securities will receive no distribution.
Payment of principal and of nonpenalty interest has been made to the
Registrant's principal secured creditor; claims of that creditor for additional
payments are in dispute. Priority claims and unsecured claims of $2,500 or less
(at the rate of 90% of the amount claimed) have been paid or will have been paid
on or before the effective date of the Plan, which is May 28, 1996.
Partial payment of other unsecured claims is expected to be made in
approximately the last week of June, 1996. Certain unsecured claims are
disputed and will not be resolved for several months.
The Order also approved, as part of the Liquidating Plan of Reorganization,
settlement of an unsecured claim made by Seymour R. Cray, the Chairman and Chief
Executive of the Registrant, by reason of his having posted $6 million in liquid
collateral for the Registrant's secured financing obtained in June and December,
1994. This amount was lost to him when the letter of credit which it secured
was drawn on by the secured lender after the Registrant filed bankruptcy. Mr.
Cray agreed with the other unsecured creditors that he would reduce his claim by
approximately $1.5 million and accept in lieu of the amount of that reduction
real estate with an estimated gross present value (before any selling costs) of
approximately $900,000. The remaining $4.5 million of his claim will be treated
as an unsecured claim.
Item 7. Financial Statements and Exhibits.
- ------ ---------------------------------
Financial Statements:
1. Monthly Financial Report filed with the United States Bankruptcy Court
for the District of Colorado for the period from April 1, 1996, to
April 30, 1996.
Exhibits:
1. Bankruptcy Court Order Confirming Plan and Authorizing the Conveyance
of Certain Property Pursuant Thereto Free and Clear of Liens and
Encumbrances.
<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.
CRAY COMPUTER CORPORATION
-------------------------
Date: May 22, 1996 By:_______________________________________
Terry A. Willkom
President
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION MONTHLY FINANCIAL REPORT
CHAPTER 11
CASE NO: 95-12697 CEM
For Period APRIL 1 to APRIL 30, 1996
COVER SHEET
Accounting Method Used: [X] Accrual Basis [ ] Cash Basis
- --------------------------------------------------------------------------------
THIS REPORT IS DUE 15 DAYS AFTER THE END OF THE MONTH
-----------------------------------------------------
Mark One Box for Each Debtor must attach each of the following reports/
Required Document documents unless the U.S. Trustee has waived the
requirement in writing. File the original with the
Clerk of Court. Transmit a duplicate, with original
signature, to the U.S. Trustee.
- --------------------------------------------------------------------------------
Report/Document Previously REQUIRED REPORTS/DOCUMENTS
Attached Waived
- --------------------------------------------------------------------------------
[X] [ ] Cash Receipts & Disbursements Statement (Form 2-B)
[X] [ ] Balance Sheet (Form 2-C)
[X] [ ] Profit and Loss Statement (Form 2-D)
[X] [ ] Supporting Schedules (Form 2-E)
[X] [ ] Quarterly Fee Summary (Form 2-F)
[X] [ ] Narrative (Form 2-G)
[X] [ ] Bank Statement(s) for Debtor in Possession
Account(s)
SEE EXHIBIT 6
- --------------------------------------------------------------------------------
I declare under penalty of perjury that the following Monthly Financial Report,
and any attachments thereto, is true and correct to the best of my knowledge and
belief.
Executed on: MAY 10, 1996 Debtor(s): /s/ Terry Willkom
-------------------------
By TERRY WILLKOM
-------------------------
Position: PRESIDENT
-------------------------
Form 2-A
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION CASE NO: 95-12697 CEM
CASH RECEIPTS AND DISBURSEMENTS STATEMENT
For Period APRIL 1 to APRIL 30, 1996
CASH RECONCILIATION
1. Beginning Cash Balance (Ending Cash Balance
from last month's report) $4,386,257.05
-------------
2. Cash Receipts (from Cash Receipts Journal
on next page) $98,264.89
----------
3. Cash Disbursements (from Cash Disbursements
Journal on next page) (24,806.03)
----------
4. Net Cash Flow (line 2 minus line 3) 73,458.86
---------
5. Ending Cash Balance (to Form 2-C) $4,459,715.91
=============
CASH SUMMARY - ENDING BALANCE
Amount Financial Institution
Petty Cash $ 300.00 HELD AT COMPANY OFFICES
------------- --------------------------
Regular Checking 190,823.28 BANK ONE, COLORADO SPRINGS
------------- --------------------------
ESCROW ACCOUNT 152,681.04 HOLLAND & HART
------------- --------------------------
Other Checking Accounts ------------- --------------------------
Interest-Bearing Deposits 4,115,911.59 BANK ONE, COLORADO SPRINGS
------------- --------------------------
Short-Term Investments 0 MONEY MARKET - ML
------------- --------------------------
TOTAL
(must agree with line 5 $4,459,715.91
above) =============
<PAGE>
CASH RECEIPTS AND DISBURSEMENTS STATEMENT
For Period April 1 to April 30, 1996
CASH RECEIPTS JOURNAL
(attach additional sheets as necessary)
Date Description (Source) Amount
---- ------------------------------------- ------
SEE EXHIBIT 1
Total Cash Receipts (to line 2 $98,264.89
of Cash Reconciliation, ==========
CASH DISBURSEMENTS JOURNAL
(attach additional sheets as necessary)
Date Check Nos. Payee Description (Purpose) Amount
---- ---------- ---------- ----------------------- ------
SEE EXHIBIT 2A AND 2B
Total Cash Disbursements (from
line 3 of Cash Reconciliation) $24,806.03
==========
Form 2-B
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION CASE NO: 95-12697 CEM
BALANCE SHEET - As of April 30, 1996
ASSETS
SEE EXHIBIT 3
Current Assets:
Cash from (from Form 2-B, line 5) $
-------------
Accounts Receivable (from Form 2-E)
-------------
Receivable from Officers, Employees, Affiliates
-------------
Inventory
-------------
Other Current Assets:
-------------- -------------
-------------- -------------
Total Current Assets: $
--------
Fixed Assets:
Land
-------------
Building
-------------
Equipment, Furniture and Fixtures
-------------
Total Fixed Assets
-------------
Less: Accumulated Depreciation
-------------
Net Fixed Assets
---------
Other Long Term Assets:
-------------- -------------
-------------- -------------
TOTAL ASSETS
---------
LIABILITIES
Post Petition Liabilities:
Accounts Payable (from Form 2-E)
-------------
Notes Payable
-------------
Rents and Leases Payable
-------------
Taxes Payable (from Form 2-E)
-------------
Accrued Interest
-------------
Other:
------------------ -------------
------------------ -------------
Total Post Petition Liabilities $
---------
Pre-Petition Liabilities:
-------------
Priority Claims
-------------
Secured Debt
-------------
Unsecured Dept
-------------
Total Pre-Petition Liabilities
---------
TOTAL LIABILITIES $
---------
OWNERS' EQUITY
Capital Stock or Owners' Investment $
-------------
Paid-In Capital
-------------
Retained Earnings:
Pre Petition
-------------
Post Petition
-------------
TOTAL OWNERS' EQUITY $
---------
TOTAL LIABILITIES AND OWNERS' EQUITY $
---------
Form 2-C
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION CASE NO: 95-12697 CEM
PROFIT AND LOSS STATEMENT
For Period April 1 to April 30, 1996
SEE EXHIBIT 4
Gross Operating Revenue $____________
Less: Discounts, Returns and Allowances (____________)
Net Operating Revenue $ ____________
Costs of Goods Sold ____________
Gross Profit ____________
Operating Expenses:
Salaries and Wages ___________
Rents and Leases ___________
Payroll Taxes ___________
Other (list): _____________ ___________
_____________ ___________
Total Operating Expenses ____________
Operating Income (Loss) ____________
Legal and Professional Fees ____________
Depreciation, Depletion and Amortization ____________
Interest Expense ____________
Net Operating Income (Loss) ____________
Non-Operating Income and Expenses
Other Non-Operating (Expenses) ___________
Gains (Losses) on Sale of Assets ___________
Interest Income ___________
Other Non-Operating Income ___________
Net Non-Operating Income or (Expenses) ____________
Net Income (Loss) Before Income Taxes ____________
Federal and State Income Tax Expense (Benefit) ____________
NET INCOME (LOSS) $ ____________
Form 2-D
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION CASE NO: 95-12697 CEM
SUPPORTING SCHEDULES
For Period APRIL 1 to APRIL 30, 1996
POST-PETITION TAXES PAYABLE SCHEDULE
------------------------------------
<TABLE>
<CAPTION>
Beginning Payments/ Date Check Ending
Balance Additions Deposits Paid No. Balance
------- --------- --------- ---- ----- -------
<S> <C> <C> <C> <C> <C> <C>
Income Tax Withheld: 4/12/96
Federal $ -0- 1,233.80 1,233.80 4/12/96 (A) -0-
------- --------- --------- ------- ------- -------
State -0- 279.34 279.34 " (A) -0-
------- --------- --------- ------- ------- -------
FICA Tax Withheld -0- 523.28 523.28 " (A) -0-
------- --------- --------- ------- ------- -------
Employers FICA Tax -0- 523.28 523.28 " (A) -0-
------- --------- --------- ------- ------- -------
Unemployment Tax:
Federal -0- 3.52 3.52 " (A) -0-
------- --------- --------- ------- ------- -------
State -0- 14.09 14.09 " (A) -0-
------- --------- --------- ------- ------- -------
Sales, Use & ------- --------- --------- ------- ------- -------
Excise Taxes ------- --------- --------- ------- ------- -------
Property Taxes
------- --------- --------- ------- ------- -------
Accrued Income Tax:
Federal
------- --------- --------- ------- ------- -------
State
------- --------- --------- ------- ------- -------
Other: __________
------- --------- --------- ------- ------- -------
TOTALS (Post Petition)
(Ending Balance to
Form 2-C) $ -0- 2,577.31 2,577.31 -0-
======= ========= ========= ======= ======= =======
</TABLE>
Note A: The Company uses Ceridian Tax Filing Service to make payroll tax
deposits and file returns. Taxes are paid to Ceridian via wire transfer
INSURANCE SCHEDULE from the Company Debtor-in-Possession Account.
<TABLE>
<CAPTION>
Amount of Policy Premium Paid
Carrier / Agent Coverage Expiration Date Through Date
--------------- --------- --------------- ------------
<S> <C> <C> <C> <C>
Workers' Compensation TIG $ / / 1/01/97
--------------- -------- --------------- ------------
General Liability CHUBB / / 1/01/97
--------------- -------- --------------- ------------
Property (Fire, Theft) CHUBB / / 1/01/97
--------------- -------- --------------- ------------
Vehicle CHUBB / / 1/01/97
--------------- -------- --------------- ------------
Other (list): / /
--------------- -------- --------------- ------------
</TABLE>
See Exhibit 7
Form 2-E
Page 1 of 2
Revised 9/92
<PAGE>
SUPPORTING SCHEDULES
For Period APRIL 1 to APRIL 30, 1996
ACCOUNTS RECEIVABLE AND POST-PETITION PAYABLE AGING
<TABLE>
<CAPTION>
Accounts Post Petition
Due Receivable Accounts Payable
- --- ----------- ----------------
<S> <C> <C>
Under 30 days $169,925.81 $
----------- ----------------
30 to 60 days
----------- ----------------
61 to 90 days
----------- ----------------
91 to 120 days
----------- ----------------
Over 120 days
----------- ----------------
Total Post Petition xxxxxxxxxxxxxxx
-----------
Pre Petition Amounts xxxxxxxxxxxxxxx
-----------
Total Accounts Receivable $ xxxxxxxxxxxxxxx
-----------
Less: Bad Debt Reserve ( ) xxxxxxxxxxxxxxx
-----------
Net Accounts Receivable
(to Form 2-C) $169,925.81 xxxxxxxxxxxxxxx
-----------
Total Post Petition Accounts Payable
(to Form 2-C) $ 0
================
</TABLE>
SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS
---------------------------------------------------------
<TABLE>
<CAPTION>
Amount Date of Estimated
Paid Court Approval Balance Due*
------ -------------- ------------
<S> <C> <C> <C>
Debtors Counsel $ -0- $
------ -------------- ------------
Counsel for Unsecured
Creditors' Committee -0-
------ -------------- ------------
Trustee's Counsel -0-
------ -------------- ------------
Acountant -0-
------ -------------- ------------
Other: -0-
--------------- ------ -------------- ------------
</TABLE>
*Balance due to include fees and expenses incurred but not yet paid.
SCHEDULE OF PAYMENTS AND TRASFERS TO PRINCIPALS/EXECUTIVES**
----------------------------------------------------------
SEE EXHIBIT 5
<TABLE>
<CAPTION>
Payee Name Position Nature of Payment Amount
---------- -------- ----------------- ------
<S> <C> <C> <C>
- ---------------- ---------------- ----------------- ----------------
- ---------------- ---------------- ----------------- ----------------
- ---------------- ---------------- ----------------- ----------------
</TABLE>
**List payments and transfers of any kind and in any form made to or for the
benefit of any proprietor, owner, partner, shareholder, officer or director.
Form 2-E
Page 2 of 2
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION CASE NO: 95-12697 CEM
QUARTERLY FEE SUMMARY/(1)/
Month Ended APRIL 30, 1996
Payment Cash Quarterly
Date Disbursements/(2)/ Fee Due Check No. Date
- ---- ------------------ --------- --------- ----
January 158,500.44
-----------
15,763.50
-----------
52,444.68
-----------
TOTAL
1st Quarter $226,708.62 1,250.00 2784 3/15/96
----------- -------- --------- -------
April 24,806.03
-----------
May
-----------
June
-----------
TOTAL
2nd Quarter $
----------- -------- --------- -------
July
-----------
August
-----------
September
-----------
TOTAL
3rd Quarter $
----------- -------- --------- -------
October
-----------
November
-----------
December
-----------
TOTAL
4th Quarter $
----------- -------- --------- -------
- --------------------------------------------------------------------------------
FEE SCHEDULE
------------
Less than $ 15,000.00 $ 250.00
$ 15,000.00 to 149,999.00 500.00
150,000.00 to 299,999.99 1,250.00
300,000.00 to 2,999,999.99 3,750.00
3,000,000.00 or more 5,000.00
- --------------------------------------------------------------------------------
(1) This summary is to reflect the current calendar years information cumulative
to the end of the reporting period.
(2) Should agree with line 3, FORM 2-B. Disbursements are net of transfers to
other debtor in possession bank accounts.
Form 2-F
Revised 9/92
<PAGE>
DEBTOR: Cray Computer Corporation (the "Company") CASE NO: 95-12697 CEM
NARRATIVE
For Period April 1 to April 30, 1996
Please provide a brief description of the significant business and legal actions
taken by the debtor, its creditors of the court during the reporting period.
April expenditures were in line with the routine administrative expenses
except for approximately $10,500 spent on the mailing of the plan of liquidation
and notice to equity holders.
Cash receipts reflect payment of approximately $75,000 for two of the three
RAID systems. The Accounts Receivable of approximately $170,000, reflects the
billing of Real Property Taxes to M/A Com and Quantum, for the period 9/1/95
through 3/31/96 of approximately $108,000. The outstanding receivable of $62,000
is for the final RAID system.
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION
CASE NO: 95-12697 CEM EXHIBIT 1
CASH RECEIPTS JOURNAL
---------------------
FOR PERIOD APRIL 1 TO APRIL 30, 1996
------------------------------------
DATE DESCRIPTION (SOURCE) AMOUNT
---- -------------------- ------
04/09/96 UCAR 50,190.00
04/09/96 MERRILL LYNCH (CLOSED ACCOUNT) 1,205.00
04/09/96 MERRILL LYNCH (CLOSED ACCOUNT) 4.65
04/25/96 UCAR 25,357.50
04/25/96 ADP (OVERPAYMENT) 228.82
04/25/96 USEMAN IND (sale of Rectifiers) 250.00
04/30/96 PETTY CASH DEPOSIT 528.92
04/30/96 INTEREST ON INVESTMENT ACCOUNT 20,500.00
----------
$98,264.89
==========
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION EXHIBIT 2A
CASE NO: 95-12697 CEM
CASH DISBURSEMENTS JOURNAL
--------------------------
FOR PERIOD APRIL 1, TO APRIL 30, 1996
-------------------------------------
<TABLE>
<CAPTION>
DATE CHECK NO. PAYEE DESCRIPTION (SOURCE) AMOUNT
---- --------- ----- -------------------- ------
<C> <C> <S> <C> <C>
04/1/96 2782 COUNTRY CLUB CORNERS APRIL RENT 663.00
04/1/96 2783 STOR N LOK APRIL RENT ON STORAGE 81.00
04/12/96 2784 U.S. TRUSTEE QUARTERLY PAYMENT 1,250.00
04/9/96 2785 CERIDIAN EMPLOYER SERVICE PAYROLL PAYMENT 313.65
04/9/96 2786 CORPORATE INVESTOR ANNUAL PROXY 1,500.00
04/9/96 2787 UNITED PARCEL SHIPPING 20.00
04/12/96 2789 COWEN CRANE & TRAN STORAGE 357.50
04/12/96 2790 U S WEST COMMUNICATION PHONE BILL 236.74
04/21/96 2792 LONG & ASSOCIATES SERVICE REPAIR 310.00
04/21/96 2793 XEROX CORPORATION MAINTENANCE 456.00
04/26/96 2796 UNITED PARCEL SERVICE SHIPPING 16.75
04/30/96 2797 CERIDIAN EMPLOYER SERVICE PAYROLL PAYMENT 94.13
04/12/96 WIRE CERIDIAN EMPLOYER SVCS PAYROLL TAXES 1,282.22
04/26/96 WIRE CERIDIAN EMPLOYER SVCS PAYROLL TAXES 1,295.09
04/08/96 WIRE ADP/ICS MAILING 9,990.50
04/30/96 PENALTY MERRILL LYNCH CLOSED ACCOUNT 126.00
ACCOUNT #001381 MONEY MARKET - ML
04/30/96 CLOSED MERRILL LYNCH CLOSED ACCOUNT 1,209.65
ACCOUNT #001110 PETTY CASH
04/30/96 DECREASED PETTY CASH DEPOSITED/EXPENSES 800.00
----------
$ 20,002.23
==========
</TABLE>
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION EXHIBIT 2B
CASE NO: 95-12697 CEM
PAYROLL JOURNAL
---------------
FOR PERIOD APRIL 1, TO APRIL 30, 1996
-------------------------------------
<TABLE>
<CAPTION>
DATE CHECK NO. NAME GROSS NET
---- --------- ---- ----- ---
<C> <C> <S> <C> <C>
04/12/96 2788 BITTING, DEBI 186.76 172.47
04/12/96 2791 WILLKOM, TERRY 3,200.00 2,198.63
-------------------------------------------------
TOTAL PAYROLL #08 04/12/96 $ 3,386.76 2,371.10
-------------------------------------------------
04/26/96 2794 BITTING, DEBI 253.46 234.07
04/28/96 2795 WILLKOM, TERRY 3,200.00 2,198.63
TOTAL PAYROLL #09 04/26/96 $ 3,453.46 2,432.70
-------------------------------------------------
TOTAL $ 6,840.22 4,803.80
=================================================
</TABLE>
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION CASE NO: 95-12697 CEM
BALANCE SHEET - As of April 30, 1996 EXHIBIT 3
ASSETS
Current Assets:
Cash (from Form 2-B, line 5) $ 4,459,715.91
Accounts Receivable (from Form 2-E) 169,925.81
Receivable from Officers, Employees Affiliates 0.00
Prepaid Insurance 24,014.00
Prepaid Other - Temporary 400.00
Utility Deposit 0.00
Rent/Lease Deposits 18,861.35
--------------
Total Current Assets $ 4,672,917.07
Fixed Assets:
Land 1,600,000.00
Building 6,400,000.00
Equipment, Furniture and Fixtures 103,000.00
--------------
Total Fixed Assets 8,103,000.00
--------------
Less: Accumulated Depreciation 0.00
--------------
Net Fixed Assets 8,103,000.00
Other Long Term Assets
Rent/Lease Deposits 11,827.50
TOTAL ASSETS $12,787,744.57
==============
LIABILITIES
Post Petition Liabilities:
Accounts Payable (from Form 2-E) $ 0.00
Accrued Real Property Taxes 215,800.00
Accrued Personal Property Taxes 269,500.00
Bank Adm. Exp. Reserve 500,000.00
Rents and Leases Payable
Taxes Payable (from Form 2-E)
Accrued Interest
--------------
Total Post Petition Liabilities $ 985,300.00
Pre-Petition Liabilities
Priority Claims 256,022.33
Unsecured Debt 11,345,457.67
--------------
Total Pre-Petition Liabilities 11,611,480.00
--------------
Short Term Deferred Income
S/T Def. Income Quantum 1,124,000.00
S/T Def. Income Quantum (Furn) 122,500.00
S/T Def. Income M/A-Com 320,004.00
--------------
Total Other Current Liabilities 1,566,504.00
--------------
Long Term Deferred Income
L/T Def. Income Quantum 374,666.40
L/T Def. Income Quantum (Furn) 40,833.60
L/T Def. Income M/A-Com 106,668.00
--------------
Total Long Term Liabilities 522,168.00
--------------
TOTAL LIABILITIES 14,685,452.00
--------------
<PAGE>
OWNERS' EQUITY
Common Stock - .01 Par 464,649.87
Paid in Capital-Common Stock 253,379,336.30
Retained Deficit:
Pre Petition (249,192,541.50)
Post Petition (7,307,124.21)
----------------
Net Income 757,972.11
TOTAL OWNERS' EQUITY (1,897,707.43)
----------------
TOTAL LIABILITIES AND OWNERS' EQUITY $ 12,787,744.57
================
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION CASE NO: 95-12697 CEM
PROFIT AND LOSS STATEMENT EXHIBIT 4
For Period April 1, to April 30, 1996
Gross Operating Revenue $ 0.00
Service Fees 0.00
Misc Revenue 130,542.00
Less: Discounts, Returns and Allowances 0.00
-----------
Net Operating Revenue $130,542.00
Cost of Goods Sold 0.00
-----------
Gross Profit 130,542.00
-----------
Operating Expenses:
Labor 7,150.22
Benefits 540.89
Supplies 202.41
Equipment 0.00
Leased Buildings & Equipment 1,101.50
Insurance 3,001.75
Real Estate Taxes 16,600.00
Personal Property Taxes 1,000.00
Legal Services 0.00
Buildings & Equipment Repair & Maintenance 456.00
Stockholder Relations 11,490.50
Utilities 236.74
Other Purchased Services 0.00
Accounting Services 407.78
Employee Travel 0.00
General Expenses 428.90
Employee Relations 0.00
-----------
Total Operating Expenses 42,616.69
-----------
Operating Income (Loss) 87,925.31
-----------
Misc Expense 0.00
Depreciation, Depletion and Amortization 0.00
Interest Expense 0.00
-----------
Net Operating Income (Loss) 87,925.31
-----------
Non-Operating Income and Expenses
Other (Income) 169,123.29
Interest Income 20,500.00
Net Non-Operating Income or (Expenses) 189,623.29
-----------
Net Income (Loss) Before Income Taxes 277,548.60
-----------
Federal and State Income Tax Expense (Benefit)
NET INCOME (LOSS) $277,548.60
===========
<PAGE>
DEBTOR: CRAY COMPUTER CORPORATION
CASE NO: 95-12697 CEM EXHIBIT 5
SUPPORTING SCHEDULES
SCHEDULE OF PAYMENTS AND TRANSFERS TO PRINCIPALS/EXECUTIVES
<TABLE>
<CAPTION>
PAYEE NAME POSITION NATURE OF PAYMENT AMOUNT
<S> <C> <C> <C>
TERRY A. WILLKOM PRESIDENT AND COO APRIL SALARY (GROSS) 6,400.00
EXPENSE REIMBURSEMENT 0.00
----------
$6,400.00
==========
</TABLE>
<PAGE>
[LOGO]
Bank One, Colorado Springs Banking Ctr. 1 21 61 4193[x]
P.O. Box 1699
Colorado Springs, CO 80942-0000
(800) 372-2651
CRAY COMPUTER Acct# 080141771
DEBTOR IN POSSESSION CASE #95-12697CEM Taxpayer ID# 841120275
202 E CHEYENNE MTN BLVD
SUITE C Mar 30 through Apr 30, 1996
COLORADO SPRINGS CO 80906 Page 1 of 2
IF YOU HAVE QUESTIONS, CALL US AT (800)372-2651. FOR THE SPEECH IMPAIRED OR
DEAF CALL (303)584-4400. AUTOMATED INFORMATION IS AVAILABLE 24 HOURS A DAY.
CUSTOMER SERVICE SPECIALISTS ARE AVAILABLE MON THROUGH FRI 7:00 AM UNTIL 7:00
PM AND SAT 9:00 AM UNTIL 1:00 PM, PARA SERVICIOS EN ESPANOL, LLAME AL
(800)372-2651.
<TABLE>
<CAPTION>
================================================================================
BANK ONE BASIC BUSINESS CHECKING
Account number 080141771
<S> <C> <C> <C>
- --------------------------------------- ----------------------------------------
Number of checks paid 18 Beginning balance $148,774.08
- --------------------------------------- ----------------------------------------
Number of withdrawals 5 Checks paid -21,569.77
- --------------------------------------- ----------------------------------------
Number of deposits/additions 3 Other withdrawals -13,844.42
- --------------------------------------- ----------------------------------------
Interest paid this period .00 Deposits +77,764.89
- --------------------------------------- ----------------------------------------
Interest paid this year $.00 Balance as of Apr. 30 $191,124.78
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Checks paid
Number Amount Date paid Number Amount Date paid
- --------------------------------------- ----------------------------------------
2771 94.66 04-03 2784 1,250.00 04-16
- --------------------------------------- ----------------------------------------
2775* 10,000.00 04-01 2785 313.65 04-17
- --------------------------------------- ----------------------------------------
2776 10.00 04-03 2786 1,500.00 04-15
- --------------------------------------- ----------------------------------------
2778* 73.92 04-02 2787 20.00 04-15
- --------------------------------------- ----------------------------------------
2779 63.92 04-12 2788 172.47 04-23
- --------------------------------------- ----------------------------------------
2780 137.02 04-02 2789 357.50 04-16
- --------------------------------------- ----------------------------------------
2781 2,198.63 04-01 2790 236.74 04-24
- --------------------------------------- ----------------------------------------
2782 663.00 04-02 2791 2,198.63 04-15
- --------------------------------------- ----------------------------------------
2783 81.00 04-03 2795* 2,198.63 04-30
- --------------------------------------------------------------------------------
21,569.77
</TABLE>
*Checks not listed were shown on a previous statement or had not yet cleared as
of 01-30-96.
- --------------------------------------------------------------------------------
Other withdrawals including fees and list posted items
Date Description
- --------------------------------------------------------------------------------
04-02 Ceridian Aka Cdcp/R Taxes 07829-001999835 1,261.61
- --------------------------------------------------------------------------------
04-08 960408001707 Outgoing Wire Non Rep Online 15.00
- --------------------------------------------------------------------------------
04-08 960408001707 Funds Transfer 9,990.50
continues
<PAGE>
[LOGO] 1 21 61 4194[N]
CRAY COMPUTER Acct #080141771
Mar 30 through Apr 30, 1996
Page 2 of 2
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Other withdrawals including fees and list posted items
Date Description
- ------------------------------------------------------------------------------
<C> <S> <C>
04-16 Ceridian Aka Cdcp/R Taxes 07829-002056334 1,282.22
- ------------------------------------------------------------------------------
04-30 Ceridian Aka Cdcp/R Taxes 07829-002103181 1,295.09
- ------------------------------------------------------------------------------
13,844.42
- ------------------------------------------------------------------------------
Deposits and other additions
Date Description
- ------------------------------------------------------------------------------
04-09 Deposit 51,399.65
- ------------------------------------------------------------------------------
04-25 Deposit 25,836.32
- ------------------------------------------------------------------------------
04-30 Deposit 528.92
- ------------------------------------------------------------------------------
77,764.89
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Daily ending balance
Date Amount Date Amount
- ------------------------ ------------------------
<S> <C> <C> <C>
04-01 $136,575.45 04-16 $168,976.12
- ------------------------ ------------------------
04-02 $134,439.90 04-17 $168,662.47
- ------------------------ ------------------------
04-03 $134,254.24 04-23 $168,490.00
- ------------------------ ------------------------
04-08 $124,248.74 04-24 $168,253.26
- ------------------------ ------------------------
04-09 $175,648.39 04-25 $194,089.58
- ------------------------ ------------------------
04-12 $175,584.47 04-30 $191,124.78
- ------------------------
04-15 $171,865.84
</TABLE>
<PAGE>
- ------------------------------------------------------------------------------
ACORD/R/ CERTIFICATE OF INSURANCE ISSUE DATE (MM/DD/YY)
[_] 1/ 2/1996
PRODUCER
CBS Insurance
P. O. Box 1900
Colorado Springs, CO 80901
(719) 634-8807 Fax (719) 634-8909
- ------------------------------------------------------------------------------
INSURED
CRAY COMPUTER CORPORATION
P. O. BOX 61003
COLORADO SPRINGS, CO 809601003
- ------------------------------------------------------------------------------
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO
RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND
OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
- ------------------------------------------------------------------------------
COMPANIES AFFORDING COVERAGE
- ------------------------------------------------------------------------------
COMPANY
LETTER A CHUBB INSURANCE
- ------------------------------------------------------------------------------
COMPANY
LETTER B TIG INSURANCE
- ------------------------------------------------------------------------------
COMPANY
LETTER C
- ------------------------------------------------------------------------------
COMPANY
LETTER D
- ------------------------------------------------------------------------------
COMPANY
LETTER E
==============================================================================
COVERAGES
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED
TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY
REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT
TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED
BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND
CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CO. POLICY EFFECTIVE POLICY EXPIRATION
LTR. TYPE OF INSURANCE POLICY NUMBER DATE (MM/DD/YY) DATE (MM/DD/YY)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A GENERAL LIABILITY
[X] COMMERCIAL GENERAL LIABILITY TO BE ASSIGNED 01/01/96 01/01/97
CLAIMS MADE [X] OCCUR.
OWNER'S & CONTRACTOR'S PROT.
- -----------------------------------------------------------------------------------------------------------------
AUTOMOBILE LIABILITY
ANY AUTO TO BE ASSIGNED 01/01/96 01/01/97
ALL OWNED AUTOS
SCHEDULED AUTOS
[X] HIRED AUTOS
[X] NON-OWNED AUTOS
GARAGE LIABILITY
- -----------------------------------------------------------------------------------------------------------------
EXCESS LIABILITY
UMBRELLA FORM
OTHER THAN UMBRELLA FORM
- -----------------------------------------------------------------------------------------------------------------
B WORKER'S COMPENSATION
AND TO BE ASSIGNED 01/01/96 01/01/97
EMPLOYERS LIABILITY
- -----------------------------------------------------------------------------------------------------------------
OTHER
- -----------------------------------------------------------------------------------------------------------------
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------
LIMITS
- ----------------------------------------------
<S> <C>
GENERAL AGGREGATE $ 2,000,000
- ----------------------------------------------
PRODUCTS-COMP/OP AGG. $ 2,000,000
- ----------------------------------------------
PERSONAL & ADV. INJURY $ 1,000,000
- ----------------------------------------------
EACH OCCURRENCE $ 1,000,000
- ----------------------------------------------
FIRE DAMAGE (Any one fire) $ 50,000
- ----------------------------------------------
MED. EXPENSE (Any one person) $ 5,000
- ----------------------------------------------
COMBINED SINGLE
LIMIT $ 1,000,000
- ----------------------------------------------
BODILY INJURY
(Per person) $
- ----------------------------------------------
BODILY INJURY
(Per accident) $
- ----------------------------------------------
PROPERTY DAMAGE $
- ----------------------------------------------
EACH OCCURRENCE $
- ----------------------------------------------
AGGREGATE $
- ----------------------------------------------
- ----------------------------------------------
[X] STATUTORY LIMITS
- ----------------------------------------------
EACH ACCIDENT $ 100,000
- ----------------------------------------------
DISEASE - POLICY LIMIT $ 500,000
- ----------------------------------------------
DISEASE - EACH EMPLOYEE $ 100,000
- ----------------------------------------------
</TABLE>
==============================================================================
CERTIFICATE HOLDER
M/A-COM, INC.
ATTN: MR. CRAIG BARROWS, ESQ.
P. O. BOX 3295
LOWELL MA 01853
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE
TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE
SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS
AGENTS OR REPRESENTATIVES.
==============================================================================
AUTHORIZED REPRESENTATIVE
- ------------------------------------------------------------------------------
<PAGE>
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLORADO
In re: )
)
CRAY COMPUTER CORPORATION, ) Case No. 95-12697 CEM
a Delaware corporation, )
) Chapter 11
EIN 84-1120275 )
)
Debtor. )
________________________________________________________________________
ORDER CONFIRMING PLAN AND AUTHORIZING THE CONVEYANCE OF CERTAIN PROPERTY
PURSUANT THERETO FREE AND CLEAR OF LIENS AND ENCUMBRANCES
________________________________________________________________________
THIS MATTER came before the Court for hearing on confirmation of the
Debtor's Third Amended Liquidating Plan of Reorganization dated March 11, 1996
(the "Plan"), pursuant to the Order Approving Disclosure Statement and Setting
Confirmation Hearing entered by this Court on March 25, 1996. The Court, having
considered the Plan, objections to confirmation thereof, and the matters
presented at the hearing thereon, finds and orders as follows:
FINDINGS
--------
1. The Debtor gave timely and sufficient notice and disclosure of the Plan
and the hearing on confirmation thereof to all creditors, equity security
holders, and other parties in interest, in compliance with the Court's Order
Approving Disclosure Statement and Setting Confirmation Hearing, the Court's
Order Approving Motion for Approval of Procedures for Transmission of Plan and
Disclosure Statement entered on March 25, 1996, and the requirements of Chapter
11 of Title 11, U.S.C.
2. The Court held a hearing on confirmation of the Plan on May 15, 1996,
at which all interested parties were afforded an opportunity to present evidence
and argument to the Court.
3. Objections to confirmation of the Plan were filed by William Kuntz III
and Congress Financial Corporation. All objections either were withdrawn or
resolved at or prior to the hearing or should be overruled.
4. The Debtor's Plan satisfies all requirements for confirmation set forth
in 11 U.S.C. (S) 1129.
5. Specifically, but without limitation, the requirements for confirmation
under 11 U.S.C. (S) 1129(b)(1) and 2(A) are met with respect to the Class 3
claim under the Plan, and the requirements for confirmation under 11 U.S.C. (S)
1129(b)(1) and
<PAGE>
(2)(C) are met with respect to the Class 9 interests under the Plan.
6. With respect to the sale of property to M/A-COM, Inc. described in
Section 5.3 of the Plan (the "M/A-COM Sale"),
a. No competing offer for the purchase of the property which is the
subject of the M/A-COM Sale was received by the Debtor at or
prior to the hearing on confirmation;
b. The purchase price of 7.3 million dollars cash to be paid by M/A-
COM pursuant to the M/A-COM Sale is reasonable, and sale at that
price is in the best interests of the estate and should be
approved;
c. The sale of property to M/A-COM pursuant to the M/A-COM Sale
should be approved as a sale free and clear of liens and
interests pursuant to 11 U.S.C. (S) 363(f), with any such liens
and interests to be satisfied pursuant to the terms of the Plan;
and
d. Upon closing of the M/A-COM Sale, M/A-COM shall have acquired the
property to be conveyed thereby in good faith and as the result
of arms-length transactions.
7. With respect to the settlement of the claim of Seymour Cray (the
"Settlement") and the conveyance of property as part of that Settlement (the
"Settlement Conveyance"), as set forth in Section 5.13 and Exhibit A of the
Plan,
a. The Settlement is reasonable and is in the best interests of the
estate and should therefore be approved;
b. The Settlement Conveyance should be approved as a sale free and
clear of liens and interests pursuant to 11 U.S.C. (S) 363(f)
with any such liens and interests to be satisfied pursuant to the
terms of the Plan; and
c. Upon closing of the Settlement Conveyance, Seymour Cray shall
have acquired the property to be conveyed thereby in good faith
and as the result of arms-length transactions.
ORDER
-----
THEREFORE, based upon the foregoing findings, it is hereby ordered,
adjudged and decreed, pursuant to 11 U.S.C. (S)(S) 1129 and 363, that:
2
<PAGE>
1. The Plan is confirmed. A copy of the confirmed Plan is attached hereto
as Exhibit 1.
2. The M/A-COM Sale is approved, and the sale and conveyance of the
property which is the subject thereof (which is described in Exhibit 2 attached
hereto) is approved and authorized pursuant to the terms set forth in the Plan,
and such sale and conveyance of property shall be free and clear of all liens,
security interests, and encumbrances, which shall be satisfied pursuant to the
terms of the Plan. Specifically, but without limitation, such conveyance shall
be free and clear of (a) the deed of trust from Cray Computer Corporation to the
Public Trustee of El Paso County, Colorado for the use of Congress Financial
Corporation dated June 10, 1994 and recorded June 13, 1994 in Book 6467 at Page
80 of the real property records of El Paso County, (b) the financing statement
from Cray Computer Corporation to Congress Financial Corporation recorded June
14, 1994 in Book 6468 at Page 1 of the real property records of El Paso County,
(c) the mechanic's lien of Service Master All Cleaning Services, Inc., recorded
April 17, 1995, in Book 6634 at Page 399 and rerecorded April 24, 1995 in Book
6637 at Page 979 of the real property records of El Paso County, and (d) the
mechanic's lien of Rampart Plumbing and Heating Supply, Inc., recorded July 7,
1995 in Book 6681 at Page 42 of the real property records of El Paso County.
3. M/A-COM is a good faith purchaser of the property which is the subject
of the M/A-COM sale and is entitled to the protections of 11 U.S.C. (S) 363(m).
4. The Settlement and the Settlement Conveyance are approved on the terms
set forth in Section 5.13 and Exhibit A of the Plan, and the conveyance of
property to be conveyed thereby (which is described in Exhibit 3 attached
hereto) is approved and authorized, with such conveyance to be free and clear of
all liens, security interests, and encumbrances, which shall be satisfied
pursuant to the terms of the Plan. Specifically, but without limitation, such
conveyance shall be free and clear of the interests described in paragraph 2 of
this Order.
5. Seymour Cray is a good faith purchaser of the property which is the
subject of the Settlement Conveyance and is entitled to the protections of 11
U.S.C. (S) 363(m).
6. Upon the Effective Date of the Plan, the Liquidating Trustee
thereunder shall be vested with all of the powers granted by the Plan.
7. All objections to confirmation of the Plan and the conveyances
contemplated thereby not otherwise settled or withdrawn are hereby overruled.
3
<PAGE>
8. The filing of the Plan and the entry of this Order shall be deemed to
have satisfied any requirement under Rule 6004(f)(1), Fed.R.Bankr.P., that the
Debtor file any itemized statement of property sold, name of purchaser and price
received regarding the conveyance of any of the assets to be conveyed pursuant
to the Plan.
9. This Order shall take effect immediately and to the extent permitted
by applicable law shall not be automatically stayed pursuant to Rule 7062,
Fed.R.Bankr.P., or otherwise.
DATED: May ___, 1996.
BY THE COURT:
______________________________
CHARLES E. MATHESON
UNITED STATES BANKRUPTCY JUDGE
4
