<PAGE>1
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):
March 21, 1997 (January 15, 1997)
CAPITAL GAMING INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
New Jersey 0-19128 22-3061189
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
Bayport One, Suite 250
8025 Black Horse Pike
W. Atlantic City, New Jersey 08232
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (609) 383-3333
Not Applicable
(Former name or former address, if changed from last report)
<PAGE>2
Item 5. Other Events.
On December 23, 1996, Capital Gaming International, Inc., a New Jersey
corporation (the "Company"), filed a voluntary petition for reorganization under
Chapter 11 of Title 11 of the United States Bankruptcy Code in the United States
Bankruptcy Court for the District of New Jersey, Case No. 96-19829. On each of
January 15, 1997, February 12, 1997 and March 17, 1997, the Company filed
reports disclosing certain financial information with the Office of the United
States Trustee. A copy of each such report is being filed as an Exhibit hereto
and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99.1 Copy of Initial Report of Capital Gaming International, Inc.
to the Office of the United States Trustee, dated
January 15, 1997.
99.2 Copy of Monthly Report of Capital Gaming International, Inc.
for January 1997 to the Office of the United States Trustee,
dated February 12, 1997.
99.3 Copy of Monthly Report of Capital Gaming International, Inc.
for February 1997 to the Office of the United States Trustee,
dated March 17, 1997.
<PAGE>3
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.
March 21, 1997 CAPITAL GAMING INTERNATIONAL, INC.
By: /s/William S. Papazian
Name: William S. Papazian
Title: Senior Vice President and
General Counsel
<PAGE>4
EXHIBIT INDEX
Exhibit
99.1 Copy of Initial Report of Capital Gaming International, Inc. to the
Office of the United States Trustee, dated January 15, 1997.
99.2 Copy of Monthly Report of Capital Gaming International, Inc. for
January 1997 to the Office of the United States Trustee, dated
February 12, 1997.
99.3 Copy of Monthly Report of Capital Gaming International, Inc. for
February 1997 to the Office of the United States Trustee, dated
March 17, 1997.
<PAGE>
OFFICE OF THE UNITED STATES TRUSTEE
INITIAL REPORTING REQUIREMENTS FOR ALL CHAPTER 11
DEBTORS (File with U.S. Trustee within 20 days after
petition filing.)
Debtors are required to submit copies of items 1-6 only if they were previously
prepared.
- --------------------------------------------------------------------------
Document Previously Explanation
Required Documents Attached Submitted Attached
- --------------------------------------------------------------------------
1. Most recently prepared annual (x) ( ) ( )
financial statements (balance sheet
and statement of income) Form 10-K
(as amended) for period ended
6/30/96.
2. Most recently prepared (other (x) ( ) ( )
than annual) balance sheet. Form
10-Q for period ended 9/30/96.
3. Most recently prepared (other (x) ( ) ( )
than annual) statement of income.
Form 10-Q for period ended 9/30/96.
4. Most recently filed State and (x) ( ) ( )
Federal Payroll tax return. Quarter
ended 9/30/96.
5. Most recently filed State and ( ) ( ) (x)
Federal Income Tax return. See
explanation attached.
6. Most recently filed State sales ( ) ( ) (x)
tax return. Not applicable.
<PAGE>
7. Proof of establishment of ( ) ( ) (x)
Debtor-in-Possession bank
accounts (submit voided checks).
Not applicable.
8. Proof of insurance (submit (x) ( ) ( )
declaration of pages).
The undersigned individual certifies under penalty of perjury (28 U.S.C. Section
1746) that to the best of the individual's knowledge, the documents appended are
the most recently prepared and/or available.
By: ________________________ Dated:__________________, 19__
------------------------------
Title of Debtor Representative
<PAGE>
Exhibit 2
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
MONTHLY REPORTING REQUIREMENTS
All Chapter 11 debtors must serve the U.S. Trustee with the documents and
reports identified below no later than the 15th day of the month following the
end of the month covered by the report.
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
For the month of: December 23-31, 1996
- --------------------------------------------------------------------------
Document Previously Explanation
Required Documents Attached Submitted Attached
- --------------------------------------------------------------------------
1. Income Statement (x) ( ) ( )
2. Balance Sheet (x) ( ) ( )
3. Statement of Cash Receipts and (x) ( ) ( )
Disbursements
4. Statement of Aged Receivables (x) ( ) ( )
5. Statement of Aged Payables (x) ( ) ( )
6. Statement of Operations, Taxes, (x) ( ) ( )
Insurance and Personnel
7. Tax Receipts ( ) ( ) (x)
8. Other documents/ reports as
required by the U.S. Trustee ( ) ( ) ( )
- -----------------------------------
- -----------------------------------
The undersigned individual certifies under penalty of perjury (28 U.S.C. Section
1746) that to the best of the individual's
<PAGE>
knowledge, the documents appended are the most recently prepared and/or
available.
By: ________________________ Dated:__________________, 19__
------------------------------
Title of Debtor Representative
<PAGE>
Exhibit 3
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
INCOME STATEMENT: Accrual Basis
For the Month Ending: December 31, 1996 (8 days)
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Current Prior
Month Month
(8 days)
Gross Revenues 25,806
Less: Returns and Allowances --
Net Revenues 25,806
Cost of Sales: (1) --
Beginning Inventory --
Add: Purchases --
Less: Ending Inventory --
Cost of Goods Sold --
Other Operating Expenses: --
Officers Salaries 19,162
Direct Labor/Salaries 4,461
Benefits/Payroll Taxes 2,384
Supplies --
Insurance --
Rent 959
Depreciation & Amortization 1,291
General & Administrative 1,317
<PAGE>
Net Operating Profit (Loss) (3,768)
Add: Other Income (2) 10,057*
Less: Other Expenses --
Interest Expense 0
Other (3) 30,087**
Total Other Expenses 30,087
Gain (Loss) Sale of Assets --
Profit (Loss) Before Taxes (23,798)
Income Taxes 0
Net Profit (Loss) (23,798)
1. If perpetual inventory records are not maintained, use of the prior period
gross profit percentage is acceptable but must be disclosed.
2. Identify the source if the amount is $500.00 or more.
3. Provide details on "other" expenses over $500.00.
* Other Income
Interest income on note receivable from wholly-owned subsidiary, Capital
Gaming Management, Inc.
** Other Expenses
Amortization of deferred finance cost and original issue discount $30,087.
<PAGE>
Exhibit 4
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
BALANCE SHEET As of 12/31/96
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW) Initial Month
ASSETS (Book Value) Current Month Prior Month
Current Assets
Cash (includes $300
cash on hand)
86,870 ___________
Inventory -- ___________
Accounts Receivable 2,100,000 ___________
Notes Receivable 4,545,216 ___________
Other (attach list)
Deposits and prepaids
444,350 ___________
-----------
Total Current Assets 7,176,436 ___________
-----------
Fixed Assets
Property and Equipment 135,698 ___________
Accumulated Depreciation 53,262 ___________
----------
Total Fixed Assets 82,436
Other (attach list) Assets 9,896,936 ___________
-----------
TOTAL ASSETS 17,155,808
=========== ===========
LIABILITIES
Post-petition Liabilities
Accounts Payable 746 ___________
Notes Payable 0 ___________
Rents & Leases Payable 0 ___________
Taxes Payable 0 ___________
Accrued Interest 0 ___________
Other: ________________ -- ___________
-----------
Total Post-petition Liabilities 746 ___________
-----------
Pre-petition Liabilities
Unsecured Debt 28,765,925 ___________
Notes Payable-Secured 103,635,927 ___________
Other Debt (priority claims)
Taxes 0 ___________
<PAGE>
Wages 8,000 ___________
Deposits -- ___________
Other: ________________ -- ___________
Total Pre-petition Liabilities 132,409,852
=========== ===========
TOTAL LIABILITIES 132,410,598
OWNER EQUITY (DEFICIT) ___________
Preferred Stock -- ___________
Common Stock 37,617,099 ___________
Capital Surplus 7,877,002 ___________
Retained Earnings (160,748,891)
PARTNERS' INVESTMENT (DEFICIT) ___________
TOTAL OWNER EQUITY (NET WORTH) (115,254,790)
=========== ===========
TOTAL LIABILITIES AND OWNER EQUITY
17,155,808
=========== ===========
NOTES:
1. Explain significant events, including
contingent liabilities and pending lawsuits,
which may have a material effect on the
financial condition of the debtor.
2. Value assets at lower of cost or market and
identify which method is being used.
3. Explain the method of inventory valuation if
other than the lower of cost or market.
4. Identify any changes in stock holdings of
"insiders" during the reporting period.
<PAGE>
=========== ==========
Capital Gaming International, Inc.
Schedule of Other Assets
31-Dec-96
Cash escrow held by bond trustee $ 937,047
Cash escrow held by CCCD/RCJV bankruptcy trustee -- (1)
Advances to CDGC subsidiary 2,165,975
Intangible assets 6,793,914
---------
Total 9,896,936
=========== ===========
(1) $500,000 escrow balance subject to offset by CCCD/RCJV bankruptcy trustee
and also subject to claims of Capital Gaming International, Inc. secured
creditors.
<PAGE>
Exhibit 5
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Month Ending: December 31, 1996 (8 days)
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Account Name: Capital Gaming International, Inc.
Depository: PNC Bank
CASH RECEIPTS
(attach additional sheets as necessary)
Date Description (Source) Amount
---- -------------------- ------
Beginning Cash Balance $(1,430)
12/29/96 Cash received from CGMI
Total Cash Receipts $88,000
- --------------------------------------------------------------------------------
CASH DISBURSEMENTS
(attach additional sheets as necessary)
Date Check No. Payee Description Amount
---- --------- ----- ----------- ------
None
Total Cash Disbursements $ 0
Adjustments (explain) $ --
Ending Cash Balance (must be reconcilable to the
bank statement for account cited above) $86,570
<PAGE>
Exhibit 4
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
BALANCE SHEET As of 12/31/96
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
ASSETS (Book Value) Initial Month
Current Assets
Cash (includes $300 cash on hand) 86,870
Inventory --
Accounts Receivable 2,100,000
Notes Receivable 4,545,216
Other -- Deposits and prepaids 444,350
-----------
Total Current Assets 7,176,436
Fixed Assets
Property and Equipment 135,698
Accumulated Depreciation 53,262
Total Fixed Assets 82,436
Other Assets (attach list) 9,896,936
TOTAL ASSETS 17,155,808
==========
LIABILITIES
Post-petition Liabilities
Accounts Payable 746
Notes Payable 0
Rents & Leases Payable 0
Taxes Payable 0
Accrued Interest 0
Other --
-----------
Total Post-petition Liabilities 746
Pre-petition Liabilities
Unsecured Debt 28,765,925
Notes Payable - Secured 103,635,927
Other Debt (priority claims)
Taxes 0
Wages 8,000
Deposits --
<PAGE>
Other --
Total Pre-petition Liabilities 132,409,852
TOTAL LIABILITIES 132,410,598
===========
OWNER EQUITY (DEFICIT)
Preferred Stock
Common Stock 37,617,099
Capital Surplus 7,877,002
Retained Earnings (160,748,891)
PARTNERS' INVESTMENT (DEFICIT)
TOTAL OWNER EQUITY (NET WORTH) (115,254,790)
===========
TOTAL LIABILITIES AND OWNER EQUITY 17,155,808
===========
NOTES
1. Explain significant events, including contingent liabilities and pending
lawsuits, which may have a material effect on the financial condition of the
debtor.
2. Value assets at lower of cost or market and identify which method is being
used.
3. Explain the method of inventory valuation if other than the lower of cost or
market.
4. Identify any changes in stock holdings of "insiders" during the reporting
period.
<PAGE>
Capital Gaming International, Inc.
Schedule of Other Assets
31-Dec-96
Cash escrow held by bond trustee $ 937,047
Cash escrow held by CCCD/RCJV bankruptcy trustee -- (1)
Advances to CDGC subsidiary 2,165,975
Intangible assets 6,793,914
Total 9,896,936
==========
(1) $500,000 escrow balance subject to offset by CCCD/RCJV bankruptcy trustee
and also subject to claims of Capital Gaming International, Inc. secured
creditors.
<PAGE>
Exhibit 5
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Month Ending: December 31, 1996 (8 days)
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Account Name: Capital Gaming International, Inc.
Depository: PNC Bank
CASH RECEIPTS
(attach additional sheets as necessary)
Date Description (Source) Amount
---- -------------------- ------
Beginning Cash Balance $(1,430)
12/29/96 Cash received from CGMI 88,000
Total Cash Receipts $88,000
- --------------------------------------------------------------------------------
CASH DISBURSEMENTS
(attach additional sheets as necessary)
Date Check No. Payee Description Amount
---- --------- ----- ----------- ------
None
Total Cash Disbursements $ 0
Adjustments (explain) $
Ending Cash Balance (must be reconcilable to the
bank statement for account cited above) $86,570
<PAGE>
Exhibit 6
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF AGED RECEIVABLES
For the month Ending: 12/31/96
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
================================================================================
Total Due: Current Past Due Past Due Past Due
(0-30 Days) (31-60 Days) (61-90 Days) (91+ Days)
- --------------------------------------------------------------------------------
Pre-petition
- ------------
CGMI
2,074,194 74,194 100,000 100,000 1,800,000
Post-petition
- ------------
CGMI
25,806 25,806
Totals
- ------------
2,100,000 100,000 100,000 100,000 1,800,000
================================================================================
Notes:
1. Please explain what actions have been taken to collect receivables more than
60 days past due.
Receivables are due from Capital Gaming Management, Inc. ("CGMI"), a
wholly-owned subsidiary. Payments are allocated first to the note receivable and
the residual amount is allocated to the service agreement receivable.
2. Provide details on all receivables due from any affiliate of debtor in an
attachment.
Receivables arise from management services agreement between Capital Gaming
International, Inc. and its wholly-owned subsidiary, CGMI.
ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from prior report) 2,074,194
2. New Accounts this Month 25,806
3. Balance (add lines 1 and 2) 2,100,000
4. Amount Collected on Prior Accounts 0
5. Closing Balance (subtract line 4 from line 3) 2,100,000
<PAGE>
Exhibit 7
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF AGED PAYABLES
--------------------------
For the month Ending: December 31, 1996
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
================================================================================
Total Due: Current Past Due Past Due Past Due
(0-30 Days) (31-60 Days) (61-90 Days) (91+ Days)
- --------------------------------------------------------------------------------
Federal Express Courier 167
Skidmore Art Design 243
Consultants
Sprint Phone 83
A Business Phone 193
Conference Call
Disclosure Info. Legal Research 60
Centers Service
TOTALS: 746
================================================================================
You may combine all payables less than 30 days past due and show on one line.
Note: Please include only post-petition debts and explain why accounts over 30
days past due have not been paid.
- --------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from prior report) 0
2. Total New Indebtedness Incurred This Month 746
3. Balance (add lines 1 and 2) 746
4. Amount Paid on Prior Accounts Payable 0
5. Closing Balance (subtract line 4 from line 3) 746
<PAGE>
Exhibit 8
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF OPERATIONS, TAXES, INSURANCE AND PERSONNEL
-------------------------------------------------------
For the month Ending: December 31, 1996
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
1. What efforts have been made toward the preparation of a plan of
reorganization?
A Plan of Reorganization was filed by the Debtor simultaneously with filing the
Voluntary Petition (December 23, 1996)
2. Has the debtor, subsequent to the filing of the petition, made any payments
on its pre-petition unsecured debt, except as have been authorized by the
Court?
___ Yes
_X_ No
Identify amount, who was paid and date paid:------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Provide a narrative report of significant events affecting debtor's
business (attach separate sheet if necessary).
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. List any payment(s) on debt that has been personally guaranteed by any
principal, partner or officer of the business.
N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. If assets have been sold in other than the ordinary course of business,
please provide details as to the assets sold, date of sale, total sales
price, deductions (i.e. commissions), and net amount received.
N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
6. STATUS OF TAXES N/A - no post-petition taxes withheld or owed.
- --------------------------------------------------------------------------------
Amount Withheld or
Accrued Post-Petition
Amount Paid Date Paid Taxes Past Due
- --------------------------------------------------------------------------------
FEDERAL TAXES
FICA
Withholding
Unemployment
Income
Other
STATE TAXES
Dept. of Labor &
Industries
Income
Employment Sec.
Dept. of Revenue
B&O
Sales
Excise
OTHER TAXES
City Business
License
Personal Property
Real Property
Other (List)
<PAGE>
Explain reason for any past due post-petition taxes:
N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. SCHEDULE OF SALARY AND OTHER PAYMENTS TO PRINCIPALS/ EXECUTIVES/INSIDERS*
Nature of
Payee Name Position Payment Amount
- --------------------------------------------------------------------------------
Edward M. Tracy President and CEO Accrual $10,645
- --------------------------------------------------------------------------------
Clinton L. Pagano Exec. VP or Compliance Accrual $ 2,151
- --------------------------------------------------------------------------------
William S. Papazian Sr. VP and Gen. Counsel Accrual $ 4,301
- --------------------------------------------------------------------------------
Cory Morowitz Acting CFO Accrual $ 2,065
- --------------------------------------------------------------------------------
List accrued salaries whether or not paid and any draws of any kind or perks
such as car etc. made to or for the benefit of any proprietor, owner, partner,
shareholder, officer, director or insider.
8. SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS
Appointment Amount Paid Date of Court Aggregate Estimated
Date This Month Approval Received Balance Due
Debtor's Counsel $ None $ $ None
Creditors' $ $ $
Committee
Counsel
Trustee Counsel $ $ $
Accountant S $ $
Other $ $ $
Identify fees accrued but not paid: Not aware of any
<PAGE>
9. Explain any changes in insurance coverage which occurred during the
reporting period.
There were no changes in insurance coverage.
10. PERSONNEL
================================================================================
Full Time Part Time
- --------------------------------------------------------------------------------
Total number of employees at
beginning of period 8 0
- --------------------------------------------------------------------------------
Number hired during the period 0 0
- --------------------------------------------------------------------------------
Number terminated or resigned
during period 0 0
- --------------------------------------------------------------------------------
Total number of employees on
payroll at period end 8 0
================================================================================
Total payroll for the period $23,623 Allocated from payment
------- made pre-petition
<PAGE>
Exhibit 2
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
MONTHLY REPORTING REQUIREMENTS
All Chapter 11 debtors must serve the U.S. Trustee with the documents and
reports identified below no later than the 15th day of the month following the
end of the month covered by the report.
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
For the month of: January 1997
- --------------------------------------------------------------------------------
Document Previously Explanation
Required Documents Attached Submitted Attached
- --------------------------------------------------------------------------------
1. Income Statement (x) ( ) ( )
2. Balance Sheet (x) ( ) ( )
3. Statement of Cash Receipts and (x) ( ) ( )
Disbursements
4. Statement of Aged Receivables (x) ( ) ( )
5. Statement of Aged Payables (x) ( ) ( )
6. Statement of Operations, Taxes, (x) ( ) ( )
Insurance and Personnel
7. Tax Receipts (x) ( ) (x)
8. Other documents/
reports as required by ( ) ( ) ( )
the U.S. Trustee
- ----------------------
- ----------------------
The undersigned individual certifies under penalty of perjury (28 U.S.C. Section
1746) that to the best of the individual's knowledge, the documents appended are
the most recently prepared and/or available.
By: /S/ ________________________ Dated: 1/15/97
Acting CFO
______________________________
Title of Debtor Representative
<PAGE>
Exhibit 3
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
INCOME STATEMENT Accrual Basis
For the Month Ending December 31, 1996 (8 days)
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Current Prior
Month Month (8 days)
Gross Revenues 100,000 25,806
Less: Returns and Allowances
Net Revenues 100,000 25,806
Cost of Sales: (1)
Beginning Inventory
Add: Purchases
Less: Ending Inventory
Cost of Goods Sold
Other Operating Expenses
Officers Salaries 75,125 19,162
Direct Labor/Salaries 11,712 4,461
Benefits/Payroll Taxes 19,890 2,384
Supplies
Insurance
Rent 3,717 959
Depreciation & Amortization 5,000 1,291
General & Administrative 48,579 1,317
<PAGE>
Net Operating Profit (Loss) (64,023) (3,768)
Add: Other Income (2) $40,204* $10,057*
Less: Other Expenses
Interest Expense
Other (3) 30,087
Total Other Expenses 30,087
Gain (Loss) Sale of Assets
Profit (Loss) Before Taxes (23,819) (23,798)
Income Taxes
Net Profit (Loss) (23,819) (23,798)
1. If perpetual inventory records are not maintained, use of the prior period
gross profit percentage is acceptable but must be disclosed.
2. Identify the source if the amount is $500.00 or more.
3. Provide details on "other" expenses over $500.00.
* Other Income
Interest income on note receivable from wholly-owned subsidiary, Capital
Gaming Management, Inc.
<PAGE>
OWNER EQUITY (DEFICIT)
Preferred Stock
Common Stock 37,617,099 37,617,099
Capital Surplus 7,877,002 7,877,002
Retained Earnings (160,772,710) (160,748,891)
------------- -------------
PARTNERS' INVESTMENT (DEFICIT)
TOTAL OWNER EQUITY (NET WORTH) (115,278,609) (115,254,790)
============= =============
TOTAL LIABILITIES AND OWNER EQUITY 17,138,782 17,155,808
============ ============
NOTES:
1. Explain significant events, including contingent liabilities and pending
lawsuits, which may have a material effect on the financial condition of
the debtor.
2. Value assets at lower of cost or market and identify which method is being
used.
3. Explain the method of inventory valuation if other than the lower of cost
or market.
4. Identify any changes in stock holdings of "insiders" during the reporting
period.
<PAGE>
Exhibit 4
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
BALANCE SHEET As of 1/31/97
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
ASSETS (Book Value) Current Month Prior Month
Current Assets
Cash (includes $300 cash on hand) $ 127,232 $ 86,870
Inventory -- --
Accounts Receivable 2,200,000 2,100,000
Notes Receivable 4,200,420 4,545,216
Other -- Deposits and prepaids 457,758 444,350
----------- -----------
Total Current Assets 6,985,410 7,176,436
----------- -----------
Fixed Assets
Property and Equipment 135,698 135,698
Accumulated Depreciation 58,262 53,262
----------- -----------
Total Fixed Assets 77,436 82,436
Other Assets (attach list) 10,075,936 9,896,936
----------- -----------
TOTAL ASSETS 17,138,782 17,155,808
----------- -----------
LIABILITIES
Post-petition Liabilities
Accounts Payable 7,539 746
Notes Payable 0 0
Rents & Leases Payable 0 0
Taxes Payable 0 0
Accrued Interest 0 0
Other -- --
----------- -----------
Total Post-petition Liabilities 7,539 746
----------- -----------
Pre-petition Liabilities
Unsecured Debt 28,765,925 28,765,925
Notes Payable - Secured 103,635,927 103,635,927
Other Debt (priority claims)
Taxes 0 0
Wages 8,000 8,000
Deposits -- --
Other -- --
Total Pre-petition Liabilities 132,409,852 132,409,852
----------- -----------
TOTAL LIABILITIES 132,410,598 132,410,598
=========== ===========
<PAGE>
Exhibit 5
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
--------------------------------------------
For the Month Ending: December 31, 1996 (8 days)
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Account Name: Capital Gaming International, Inc.
Depository: PNC Bank
CASH RECEIPTS
(attach additional sheets as necessary)
Date Description (Source) Amount
x Beginning Cash Balance $ 86,570
1/1/97 Void check 5623 350
1/10/97 Cash received from CGMI for loan 125,000
1/13/97 Suzanne Glass - Reimburse Petty Cash 27
1/22/97 CGMI loan payment 50,000
1/28/97 CGMI loan payment 130,000
1/30/97 CGMI loan payment 80,000
Total Cash Receipts $385,377
- --------------------------------------------------------------------------------
CASH DISBURSEMENTS
(attach additional sheets as necessary)
Date Check No. Payee Description Amount
---- --------- ----- ----------- ------
See attached
None
Total Cash Disbursements $345,256
Adjustments (explain): Adjustment per December Bank Reconciliation $ 241
Ending Cash Balance (must be reconcilable to the bank statement
for account cited above) $126,932
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------------------------------------------
Cash Disbursements
ACTIVE CASH ACCOUNTS: Midlantic checking Register through 01/31/97:
<CAPTION>
Date No./ Payee Description Amount
Ref.
- --------- ------- ------------------------------- -------------------------------------------------------- ----------
<S> <C> <C> <C> <C>
1/2/97 payroll Edward Tracy Direct deposit Jan payroll 22,769.37
1/2/97 payroll Sylvia Desantis-DeCamp Direct deposit Jan payroll 2,223.00
1/2/97 payroll William Papazian Direct Deposit Jan Payroll 9,852.98
1/2/97 payroll Suzanne Glass ck 328 Payroll 1,787.87
1/2/97 payroll Rochelle Kirschner ck 329 Payroll 2,934.37
1/2/97 payroll Cory Morowitz ck 330 Payroll 5,087.59
1/2/97 payroll Janine Sheldrake ck 331 Payroll 1,706.60
1/2/97 payroll Col. Pagano ck 332 Payroll 4,060.58
1/2/97 payroll tax deposit direct deposit-payroll taxes 43,056.23
1/7/97 5626 Capt. Robert P. Hopkins Testimonial Dinner (1) Ticket for Col. Clinton Pagano 40.00
Testimonial
1/7/97 5627 Daphne Leaumont Consulting Services 12/28/96-01/03/97 350.00
1/7/97 5628 NJ Secretary of State RE Change of Registered Agent and Office CGII 10.00
1/13/97 wire Capital Development Gaming Transfer 100,000.00
Corp.
1/13/97 5629 ADP Proxy Services Invoice: 36______ Cusip: 140180/Job: 101786 820.91
1/13/97 5630 American Stock Transfer & Monthly Transfer Fee: January 1997 520.50
Trust
1/13/97 5631 Daphne Leaumont Consulting Services 704.00
1/13/97 5632 Greater Media Cable Service: 01/04/97-02/03/97 102.98
1/13/97 5633 Keystone Natural Water Ticket 236983/Account 209282 17.25
1/13/97 5634 Mossman Business Machines Document 024091 & 024092 896.46
1/13/97 5635 N.J. State Disability Employer Registration: 780684-00-9 161.14
Benefits Fund
1/13/97 5636 PCS Invoice: 122996-101 325.36
1/13/97 5637 PR Newswire, Inc. Account: 111628 Invoice: 13167825 810.00
1/13/97 5638 Transamerica Assurance Company Premium Calculation: January 1997/Policy: BTLS190 1,234.60
1/13/97 5639 United States Realty & Late Charge/Electric Billing 685.72
Investment Co.
1/13/97 5640 void Federal Express (Blank Check) --
1/15/97 5641 Petty Cash Office Usage 500.00
1/21/97 5642 A Business Conference-Call, Telephone 739.55
Inc.
1/21/97 5643 Bell Atlantic - NJ 609 383-3333-Telephone Deposit 3,600.00
1/21/97 5644 Cellular one - Mercer County Phone 213.58
1/21/97 5645 CompuServe Incorporated December Usage Charge-William S. Papazian 75.00
1/21/97 5646 D.C. Express Account 3766- Papazian 247.50
1/21/97 5647 Daphne Leaumont Consulting Services: January 13-January 17, 1997 350.00
1/21/97 5648 Day-Timers, Inc. Refills 34.90
1/21/97 5649 Disclosure Info Centers Research 146.25
1/21/97 5650 Federal Express Delivery 342.80
1/21/97 5651 Ikon Capital Account No. 0000082492-97622/Period: 1/21/97-2/26/97 227.43
1/21/97 5652 Kan Business Machines Copier Service 236.54
1/21/97 5653 Lacidand Self Storage Unit F-458 121.00
1/21/97 5654 Orionvision Customer No.: 01-00475 21.93
1/21/97 5655 PCS-Computers Installation, Service, & Repairs to Office Computers 887.90
1/21/97 5656 Porte Advertising, Inc. Development cost 10,500.65
1/21/97 5657 Skidmore Art Consultants Development cost 743.27
1/21/97 5658 Sprint 176310466 82.37
1/21/97 5659 Staples Order No. 701095-5049-AC 505.39
1/21/97 5660 West Publishing Corporation Account No.: 521-206-062 1,090.65
1/24/97 5661 Bernstein, Simpson, Gilbert & Internal bookkeeping and support 3,525.00
Morowitz
1/24/97 5662 Bernstein, Simpson, Gilbert & Health insurance for Cory Morowitz 706.15
Morowitz
1/28/97 5663 Petty Cash Office Usage 500.00
1/29/97 5664 A Business Conference-Call, Telephone 501.80
Inc.
1/29/97 5665 Advanced Business Machines, Last Payment 160.50
Inc.
1/29/97 5666 Air Touch Cellular Mobile Phone Number (970) 379-6612 3.56
1/29/97 5667 AT & T Wireless Long Distance Account No. V33-970-379-8612-0-4 2.91
1/29/97 5668 Bankruptcy Services, Inc. Services December 1996 390.60
1/29/97 5669 Bell Atlantic - PA 215 925-7718-741 37Y 96.40
1/29/97 5670 Blue Cross & Blue Shield Account No. 293641874/Group No. 30239 18,341.13
1/29/97 5672 Daphne Leaumont Consulting Services: 1/20/97-1/24/97 350.00
1/29/97 5673 Disclosure Info Centers Research 140.25
1/29/97 5674 Lewan & Associates Invoice No.: 45184103297 201.42
1/29/97 5675 Mobilecomm Account No.: 051-390781 392.88
1/29/97 5676 Mossman Business Machines Copier Service to Model 2270 79.50
1/29/97 5677 NYNEX 212 308-2034 951 729 (Jack Davis) 12.37
1/29/97 5678 PCS-Computers Computer supplies 1,828.47
1/29/97 5679 PECO Energy Account No.: 21-14-54-080428 (Edward Tracy) 957.36
1/29/97 5680 Philadelphia Gas Works Account No. 150/02/0190/104 (Edward Tracy) 287.00
1/29/97 5681 Pitney Bowes Credit Corp. Invoice No. 8006306-JA97/Quarterly Charges 276.00
2/10/97-5/10/97
1/29/97 5682 Pitney Bowes, Inc. Account No.: 1547-9379-86-7/Maintenance Agreement 546.91
11/1/96-10/31/97
1/29/97 5684 Transamerica Assurance Company Premium Calculation: February 1997/Policy No. STL5190 1,323.96
1/29/97 5685 United Parcel Services Delivery 201.00
1/29/97 5686 United States Realty & Office Rent February 1997 3,717.00
Investment Co.
1/29/97 5687 Clinton Pagano Expense Report Reimbursement 267.00
1/29/97 5688 Sprint Master Account ID: 810761916/Invoice Account ID: 1,260.49
341636266
1/30/97 5689 Thomas A. Hanley Development cost 5,000.00
1/31/97 Bank service charges Service Charge 269.60
1/31/97 wire Capital Development Gaming Transfer 80,000,00
Corp.
1/31/97 payroll Tax deposit Tax deposit on Rochelle vacation 1,377.82
1/31/97 payroll Rochelle Kirschner ck 333 Prepaid Payroll (Vacation) 2,034.37
----------
Totals 345,255.65
</TABLE>
<PAGE>
Capital Gaming International, Inc.
Schedule of Other Assets
31-Dec-96
Cash escrow held by bond trustee $937,047
Cash escrow held by CCCD/RCJV bankruptcy trustee -- (1)
Advances to CDGC subsidiary 2,499,975
Intangible assets 6,793,914
---------
Total 10,230,936
==========
(1) $500,000 escrow balance subject to offset by CCCD/RCJV bankruptcy trustee
and also subject to claims of Capital Gaming International, Inc. secured
creditors.
<PAGE>
Exhibit 6
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF AGED RECEIVABLES
For the month Ending: January 31, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
================================================================================
Total Due: Current Past Due Past Due Past Due
(0-30 Days) (31-60 Days) (61-90 Days) (91+ Days)
- --------------------------------------------------------------------------------
Pre-petition
CGMI
2,074,194 0 74,194 100,000 1,900,000
Post-petition
CGMI
125,806 100,000 25,806
Totals
2,200,000 100,000 100,000 100,000 1,900,000
================================================================================
Notes:
1. Please explain what actions have been taken to collect receivables more than
60 days past due.
Receivables are due from subsidiary and will be paid when cash flow is
available.
2. Provide details on all receivables due from any affiliate of debtor in an
attachment.
Receivables arise from management services agreement.
ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from prior report) 2,100,000
2. New Accounts this Month 100,000
3. Balance (add lines 1 and 2) 2,200,000
4 Amount Collected on Prior Accounts 0
5 Closing Balance (subtract line 4 from line 3) 2,200,000
<PAGE>
Exhibit 7
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF AGED PAYABLES
For the month Ending: December 31, 1996
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
================================================================================
Account Name: Description: Current Past Due Past Due Past Due
(0-30 Days) (31-60 Days) (61-90 Days) (91+ Days)
- --------------------------------------------------------------------------------
U.S. Trustee Fee 250
Merrill Lynch 401-K 4,037
US Realty Utilities 894
Airtouch Telephone 225
Sprint Telephone 49
Bell Atlantic Telephone 2,084
TOTALS: 7,539
================================================================================
You may combine all payables less than 30 days past due and show on one line.
Note: Please include only post-petition debts and explain why accounts over 30
days past due have not been paid.
- --------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from prior report) 746
2. Total New Indebtedness Incurred This Month 7,539
3. Balance (add lines 1 and 2) 8,285
4. Amount Paid on Prior Accounts Payable 746
5. Closing Balance (subtract line 4 from line 3) 7,539
<PAGE>
Exhibit 8
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF OPERATIONS, TAXES, INSURANCE AND PERSONNEL
-------------------------------------------------------
For the month Ending: December 31, 1996
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
1. What efforts have been made toward the preparation of a plan of
reorganization?
A Plan of Reorganization was filed by the Debtor simultaneously with filing the
Voluntary Petition (December 23, 1996)
2. Has the debtor, subsequent to the filing of the petition, made any payments
on its pre-petition unsecured debt, except as have been authorized by the
Court?
___ Yes
_X_ No
Identify amount, who was paid and date paid:------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Provide a narrative report of significant events affecting debtor's
business (attach separate sheet if necessary).
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. List any payment(s) on debt that has been personally guaranteed by any
principal, partner or officer of the business.
N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. If assets have been sold in other than the ordinary course of business,
please provide details as to the assets sold, date of sale, total sales
price, deductions (i.e. commissions), and net amount received.
N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
6. STATUS OF TAXES N/A - no post-petition taxes withheld or owed.
================================================================================
Amount Post-Petition
Withheld or Taxes
Accrued Amount Paid Date Paid Past Due
- --------------------------------------------------------------------------------
FEDERAL TAXES
- --------------------------------------------------------------------------------
FICA 13,891.64 13,891.64 January '97 None
- --------------------------------------------------------------------------------
Withholding 23,319.57 23,319.57 " "
- --------------------------------------------------------------------------------
Unemployment 342.03 342.03 " "
- --------------------------------------------------------------------------------
Income
- --------------------------------------------------------------------------------
Other
- --------------------------------------------------------------------------------
STATE TAXES
- --------------------------------------------------------------------------------
Dept. of Labor & 3,776.74 3,776.74 January '97 None
Industries
- --------------------------------------------------------------------------------
Income
- --------------------------------------------------------------------------------
Employment Sec. 2,596.24 2,596.24 January '97 None
- --------------------------------------------------------------------------------
Dept. of Revenue
- --------------------------------------------------------------------------------
B&O
- --------------------------------------------------------------------------------
Sales
- --------------------------------------------------------------------------------
Excise
- --------------------------------------------------------------------------------
OTHER TAXES
- --------------------------------------------------------------------------------
City Business
- --------------------------------------------------------------------------------
License
- --------------------------------------------------------------------------------
Personal Property
- --------------------------------------------------------------------------------
Real Property
- --------------------------------------------------------------------------------
Other (List)
================================================================================
<PAGE>
Explain reason for any past due post-petition taxes:
N/A
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. SCHEDULE OF SALARY AND OTHER PAYMENTS TO PRINCIPALS/ EXECUTIVES/INSIDERS*
Nature of
Payee Name Position Payment Amount
- --------------------------------------------------------------------------------
Edward M. Tracy President and CEO Direct Deposit $41,250
- --------------------------------------------------------------------------------
Clinton L. Pagano Exec. VP or Compliance Check $ 8,333
- --------------------------------------------------------------------------------
William S. Papazian Sr. VP and Gen. Counsel Direct Deposit $16,667
- --------------------------------------------------------------------------------
Cory Morowitz Acting CFO Check $ 8,875
- --------------------------------------------------------------------------------
List accrued salaries whether or not paid and any draws of any kind or perks
such as car etc. made to or for the benefit of any proprietor, owner, partner,
shareholder, officer, director or insider.
8. SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS
Appointment Amount Paid Date of Court Aggregate Estimated
Date This Month Approval Received Balance Due
- --------------------------------------------------------------------------------
Debtor's Counsel $ None $ $ None
- --------------------------------------------------------------------------------
Creditors' $ x $ $ x
Committee Counsel
- --------------------------------------------------------------------------------
Trustee Counsel $ x $ $ x
- --------------------------------------------------------------------------------
Accountant $ x $ $ x
- --------------------------------------------------------------------------------
Other $ x $ $ x
vIdentity fees accrued but not paid:
Invoices have not yet been presented
- --------------------------------------------------------------------------------
<PAGE>
9. Explain any changes in insurance coverage which occurred during the
reporting period.
There were no changes in insurance coverage.
10. PERSONNEL
Full Time Part Time
Total number of employees at beginning of period 8 0
Number hired during the period 0 0
Number terminated or resigned during period 0 0
Total number of employees on payroll at period end 8 0
Total payroll for the period $86,837 Allocated from payment made
------- pre-petition
<PAGE>
Exhibit 2
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
MONTHLY REPORTING REQUIREMENTS
All Chapter 11 debtors must serve the U.S. Trustee with the documents and
reports identified below no later than the 15th day of the month following the
end of the month covered by the report.
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
For the month of: February 1997
- --------------------------------------------------------------------------------
Document Previously Explanation
Required Documents Attached Submitted Attached
- --------------------------------------------------------------------------------
1. Income Statement. (x) ( ) ( )
2. Balance Sheet. (x) ( ) ( )
3. Statement of Cash Receipts and (x) ( ) ( )
Disbursements.
4. Statement of Aged Receivables. (x) ( ) ( )
5. Statement of Aged Payables. (x) ( ) ( )
6. Statement of Operations, Taxes, (x) ( ) ( )
Insurance and Personnel.
7. Tax Receipts. (x) ( ) ( )
8. Other documents/ reports as required ( ) ( ) ( )
by the U.S. Trustee:
======================
======================
The undersigned individual certifies under penalty of perjury (28 U.S.C. Section
1746) that to the best of the individual's knowledge, the documents appended are
true and correct.
By:/s/ Dated:3/17, 1997
Acting Chief Financial Officer
Title of Debtor Representative
<PAGE>
Exhibit 3
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
INCOME STATEMENT Accrual Basis
For the Month Ending: February 28, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Current Prior
Month Month
Gross Sales 100,000 100,000
Less: Returns and Allowances
Net Sales 100,000 100,000
Cost of Sales: (1) _______ _______
Beginning Inventory _______ _______
Add: Purchases _______ _______
Less: Ending Inventory _______ _______
Cost of Goods Sold _______ _______
Other Operating Expenses: _______ _______
Officers Salaries 77,406 75,125
Direct Labor/Salaries 11,712 11,712
Benefits/Payroll Taxes 20,470 19,890
Supplies _______ _______
Insurance _______ _______
Rent 3,717 3,717
Depreciation & Amortization 5,000 5,000
General & Administrative 23,295 48,579
<PAGE>
Net Operating Profit (Loss) (41,600) (64,023)
Add: Other Income (2) $ 30,147* $ 40,204*
Less: Other Expenses _______ _______
Interest Expense _______ _______
Other (3) 0 0
Total Other Expenses 0 0
Gain (Loss) Sale of Assets _______ _______
Profit (Loss) Before Taxes (11,453) (23,819)
Income Taxes _______ _______
Net Profit (Loss) (11,453) (23,819)
- --------------------------------------------------------------------------------
1. If perpetual inventory records are not maintained, use of the prior period
gross profit percentage is acceptable but must be disclosed.
2. Identify the source if the amount is $500.00 or more.
3. Provide details on "other" expenses over $500.00.
* Other Income
Interest income on Note receivable from CGMI
<PAGE>
Exhibit 4
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
BALANCE SHEET As of 1/31/97
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
ASSETS Current Month Prior Month
Current Assets
Cash (includes $300 cash on hand) $ 130,622 $ 127,232
Inventory -- --
Accounts Receivable 2,300,000 2,200,000
Notes Receivable 3,950,567 4,200,420
Other (attach list) Deposits and 443,228 457,758
Prepaids
Total Current Assets 6,824,417 6,985,410
Fixed Assets
Property and Equipment 135,698 135,698
Accumulated Depreciation 63,262 58,262
Total Fixed Assets 72,436 77,436
Other Assets (attach list) 10,230,936 10,075,936
TOTAL ASSETS 17,127,789 17,138,782
LIABILITIES
Post-petition Liabilities:
Accounts Payable 7,999 7,539
Notes Payable 0 0
Rents & Leases Payable 0 0
Taxes Payable 0 0
Accrued Interest 0 0
Other _______________ -- --
Total Post-petition Liabilities: 7,999 7,539
Pre-petition Liabilities:
Unsecured Debt 28,765,925 28,765,925
Notes Payable - Secured 103,635,927 103,635,927
Other Debt (priority claims)
Taxes 0 0
Wages 8,000 8,000
Deposit -- --
Other _______________ -- --
Total Pre-petition Liabilities 132,409,852 132,409,852
TOTAL LIABILITIES 132,410,598 132,410,598
<PAGE>
OWNER EQUITY (DEFICIT)
Preferred Stock
Common Stock 37,617,099 37,617,099
Capital Surplus 7,877,002 7,877,002
Retained Earnings (160,784,163) (160,772,710)
-------- --------
PARTNERS' INVESTMENT (DEFICIT) ___________ ___________
TOTAL OWNER EQUITY (NET WORTH) (115,290,062) (115,278,609)
TOTAL LIABILITIES AND OWNER EQUITY 17,127,789 17,138,782
NOTES:
1. Explain significant events, including contingent liabilities and pending
lawsuits, which may have a material effect on the financial condition of
the debtor.
2. Value assets at lower of cost or market and identify which method is being
used.
3. Explain the method of inventory valuation if other than the lower of cost
or market.
4. Identify any changes in stock holdings of "insiders" during the reporting
period.
<PAGE>
Capital Gaming International, Inc.
Schedule of Other Assets
31-Dec-96
Cash escrow held by bond trustee $ 937,047
Cash escrow held by CCCD/RCJV bankruptcy trustee -- (1)
Advances to CDGC subsidiary 2,499,975
Intangible assets 6,793,914
Total 10,230,936
(1) $500,000 escrow balance subject to offset by CCCD/RCJV bankruptcy trustee
and also subject to claims of Capital Gaming International, Inc. secured
creditors.
<PAGE>
Exhibit 5
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Month Ending: February 28, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
Account Name: Capital Gaming International, Inc.
Depository:
CASH RECEIPTS
(attach additional sheets as necessary)
Date Description (Source) Amount
---- -------------------- ------
Beginning Cash Balance $126,932
2/21/97 Void checks 425
2/10/97 CGMI - Loan Repayment 100,000
2/26/97 CGMI - Loan Repayment 180,000
Total Cash Receipts $280,425
CASH DISBURSEMENTS
(attach additional sheets as necessary)
Date Description (Source) Amount
---- -------------------- ------
See Attached
None
Total Cash Disbursements $277,035
Adjustments (explain) $
Ending Cash Balance (must be reconcilable to the bank
statement for account cited above) $130,322
<PAGE>
<TABLE>
ACTIVE CASH ACCOUNTS: Midlantic checking Register through 02/28/97:
<CAPTION>
Date No./Ref. Payee Description Amount
- --------- ---------- ------------------------------------- ------------------------------------------ ----------
<S> <C> <C> <C> <C>
2/1/9 payroll Sylvia Desantis-DeCamp direct deposit Feb Payroll 2,223.00
2/1/97 payroll Edward Tracy direct deposit Feb Payroll 23,829.58
2/1/97 payroll WILLIAM PAPAZIAN direct deposit Feb Payroll 9,983.97
2/1/97 payroll Bank wire tax deposit 39,491.47
2/1/97 payroll Suzanne Glass ck 334 payroll 1,787.87
2/1/97 payroll Cory Morowitz ck 335 payroll 6,298.20
2/1/97 payroll Janine Sheldrake ck 336 payroll 1,706.60
2/1/97 payroll Col. Pagano ck 337 payroll 4,060.58
2/3/97 5690 U.S. Trustee Quarterly Fee: Fourth Quarter 1996 250.00
2/10/97 5691 PCS-Computers telephone 516.75
2/10/97 5692 A Business Conference-Call, Inc. telephone 125.65
2/10/97 5693 Air Touch Cellular telephone 225.40
210/97 5694 American Stock Transfer & Trust Monthly Transfer Fee: February 1997 500.00
2/10/97 5695 Carey Limousine Customer No. 711051/Res No.: 07429024/ 76.40
2/10/97 5696 Daphne Leaumont Consulting Services: January 27, 350.00
1997-January 31, 19097
2/10/97 5697 Greater Media Cable Service: February 4, 1997-March 3, 1997 102.98
2/10/97 5698 Keystone Natural Water Ticket No. 245987 11.50
2/10/97 5699 Merrill Lynch 401K payment 8,073.32
2/10/97 5700 Mossman Business Machines service/rent 596.46
2/10/97 5701 Nationwide Cellular Service 917-847-3731/Irving G. Davis Jr. 98.60
2/10/97 5702 Pitney Bowes Inc. Account No.: 1547-9379-86-7/Meter 137.46
Rental: 3/16/97-6/15/97
2/10/97 5703 Print Art Job No.: 51803 1,384.36
2/10/97 5704 Sprint Customer No.: 176310466/Edward M. Tracy 49.24
2/10/97 5706 Bell Atlantic, NJ 809 383-3333-333-21 1,926.30
2/10/97 5707 Bell Atlantic-New Jersey telephone 158.13
2/11/97 wire Capital Development Gaming Corp. Transfer/loan 80,000.00
2/11/97 5708 Depository Trust Company Expense 70.00
2/12/97 5709 Petty Cash Office Usage 500.00
2/12/97 5710 Sir Speedy Copies for Distribution 563.13
2/18/97 5711 Daphne Leaumont Consulting Services: February 350.00
10-February 14, 1997
2/21/97 5713 PCS-Computers Service 527.88
3/26/97 wire Capital Development Gaming Corp. Transfer/Loan 75,000.00
2/26/97 5714 A Business Conference-Call, Inc. Telephone 723.80
2/26/97 5715 Air Touch Cellular Account No.: 1042-2888849/Cellular No.: 58.37
(970) 379-6612
2/26/97 5716 Bell Atlantic - PA 215 925-7718-741 37Y (Edward M. Tracy) 96.03
2/26/97 5717 Bell Atlantic NYNEX Mobile Account No.: 061927843/Billing No.: 917 133.11
886-3939
2/26/97 5718 Bernstein, Simpson, Gilbert & Health Insurance: Cory Morowitz 740.81
Morowitz
3/26/97 5719 Cellular one - Mercer County Telephone 127.57
2/26/97 5720 CompuServe Incorporated Account No.: 7534725/Invoice No: 61.70
9701223254
2/26/97 5721 Disclosure Info Centers Monitor Fee: January 1997 60.00
2/26/97 5722 Ikon Capital Account No. 00000082492-97622/Invoice 227.43
No.: 36867486
2/26/97 5723 Lackland Self Storage Unit F-458 109.00
2/26/97 5724 Lewan & Associates Customer No: 451841/Invoice No: 201.42
45184106197
2/26/97 5725 NYNEX 212 838-4493 078 720/Jack IG Davis 172.69
2/26/97 5726 Paine Webber Cusip No: 140180100 165.10
2/26/97 5727 Philadelphia Depository Trust Co. Customer No: 140180/Proxy Listing 92.00
2/26/97 5728 Transamerica Assurance Company Premium Calculation: March 1997/Policy 1,323.96
No.: STL5190
2/26/97 5729 United Parcel Services Invoice No. 8200040519-077/Shipper No. 19.00
8200040519
2/26/97 5730 United States Realty & Investment Office Rent: March 1997 3,717.00
Co.
3/26/97 5731 US West Direct Account No.: 005743541001/Invoice No.: 11.72
000004001230
2/26/97 5732 West Publishing Corporation Account No: 521-206-082/Invoice Summary: 3,894.35
1/1/97-1/31/97
2/26/97 5733 AT&T Wireless Services Account No: 20157426/Telephone No.: 1,699.22
970-948-2764
2/28/97 Bank charge Service Charge 138.85
2/28/97 Bank Federal Express record fedex payments charged to acct 1,041.75
charge
----------
Total 277,034.55
</TABLE>
<PAGE>
Exhibit 6
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF AGED RECEIVABLES
For the month Ending: January 31, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
================================================================================
Total Due: Current Past Due Past Due Past Due
(0-30 Days) (31-60 Days) (61-90 Days) (91+ Days)
- --------------------------------------------------------------------------------
Pre-petition
CGMI
2,074,194 0 0 74,194 2,000,000
Post-petition
CGMI
225,806 100,000 100,000 25,806
Totals
2,300,000 100,000 100,000 100,000 1,900,000
================================================================================
Notes:
1. Please explain what actions have been taken to collect receivables more
than 60 days past due.
Receivables are due from subsidiary and will be paid when cash flow is
available.
2. Provide details on all receivables due from any affiliate of debtor in an
attachment.
Receivables arise from management services agreement.
ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from prior report) 2,200,000
2. New Accounts this Month 100,000
3. Balance (add lines 1 and 2) 2,300,000
4. Amount Collected on Prior Accounts 0
5. Closing Balance (subtract line 4 from line 3) 2,300,000
<PAGE>
Exhibit 7
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF AGED PAYABLES
For the month Ending: December 31, 1996
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
================================================================================
Account Name: Description: Current Past Due Past Due Past Due
(0-30 Days) (31-60 Days) (61-90 Days) (91+ Days)
- --------------------------------------------------------------------------------
All current 7,999
payables
TOTALS: 7,999
================================================================================
You may combine all payables less than 30 days past due and show on one line.
Note:Please include only post-petition debts and explain why accounts over 30
days past due have not been paid.
- --------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE RECONCILIATION:
1. Opening Balance (total from prior report) 7,539
2. Total New Indebtedness Incurred This Month 7,999
3. Balance (add lines 1 and 2) 15,538
4. Amount Paid on Prior Accounts Payable 7,539
5. Closing Balance (subtract line 4 from line 3) 7,999
<PAGE>
Exhibit 8
OFFICE OF THE UNITED STATES TRUSTEE -- REGION 3
STATEMENT OF OPERATIONS, TAXES, INSURANCE AND PERSONNEL
For the month Ending: February 28, 1997
Debtor Name: Capital Gaming International, Inc.
Case Number: 96-19829 (JHW)
1. What efforts have been made toward the preparation of a plan of
reorganization?
A Plan of Reorganization was filed by the Debtor simultaneously with filing the
Voluntary Petition (December 23, 1996)
2. Has the debtor, subsequent to the filing of the petition, made any payments
on its pre-petition unsecured debt, except as have been authorized by the
Court?
___ Yes
_X_ No
Identify amount, who was paid and date paid:------------------------------------
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3. Provide a narrative report of significant events affecting debtor's
business (attach separate sheet if necessary).
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4. List any payment(s) on debt that has been personally guaranteed by any
principal, partner or officer of the business.
N/A
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5. If assets have been sold in other than the ordinary course of business,
please provide details as to the assets sold, date of sale, total sales
price, deductions (i.e. commissions), and net amount received.
N/A
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6. STATUS OF TAXES N/A - no post-petition taxes withheld or owed.
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Amount Post-Petition
Withheld or Taxes
Accrued Amount Paid Date Paid Past Due
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FEDERAL TAXES
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FICA 11,514.58 11,514.58 February '97 None
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Withholding 23,659.26 23,659.26 February '97 "
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Unemployment 86.36 86.36 February '97 "
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Income
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Other
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STATE TAXES
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Dept. of Labor & 3,801.99 3,801.99 February '97 None
Industries
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Income
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Employment Sec. 1,482.13 1,482.13 February '97 None
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Dept. of Revenue
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B&O
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Sales
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Excise
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OTHER TAXES
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City Business
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License
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Personal Property
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Real Property
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Other (List)
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Explain reason for any past due post-petition taxes:
N/A
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7. SCHEDULE OF SALARY AND OTHER PAYMENTS TO PRINCIPALS/ EXECUTIVES/INSIDERS*
Nature of
Payee Name Position Payment Amount
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Edward M. Tracy President and CEO Direct Deposit $41,250
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Clinton L. Pagano Exec. VP or Compliance Check $ 8,333
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William S. Papazian Sr. VP and Gen. Counsel Direct Deposit $16,667
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Cory Morowitz Acting CFO Check $11,156
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$77,406
List accrued salaries whether or not paid and any draws of any kind or perks
such as car etc. made to or for the benefit of any proprietor, owner, partner,
shareholder, officer, director or insider.
8. SCHEDULE OF PAYMENTS TO ATTORNEYS AND OTHER PROFESSIONALS
Appointment Amount Paid Date of Court Aggregate Estimated
Date This Month Approval Received Balance Due
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Debtor's Counsel $ None $ $ None
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Creditors' $ None $ $ None
Committee Counsel
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Trustee Counsel $ None $ $ None
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Accountant $ None $ $ None
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Other $ None $ $ None
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Identity fees accrued but not paid:
Invoices have not yet been presented
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9. Explain any changes in insurance coverage which occurred during the
reporting period.
There were no changes in insurance coverage.
10. PERSONNEL
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Full Time Part Time
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Total number of employees at beginning of period 8 0
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Number hired during the period 0 0
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Number terminated or resigned during period 0 0
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Total number of employees on payroll at period end 8 0
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Total payroll for the period $89,118
