<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: December 6, 1999
SUN TELEVISION AND APPLIANCES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Ohio 0-19269 31-1178151
---- ------- ----------
(STATE OR OTHER (COMMISSION FILE NO.) (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION
NUMBER)
INCORPORATION OR
ORGANIZATION)
6600 Port Road
Groveport, Ohio 43125
(614) 492-5600
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER
INCLUDING AREA CODE OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
Not Applicable
(FORMER NAME OR ADDRESS, IF CHANGED SINCE LAST REPORT)
<PAGE> 2
ITEM 5. OTHER EVENTS.
As previously reported on Form 8-K, on September 16, 1998, Sun
Television and Appliances, Inc. and its subsidiary Sun TV and Appliances, Inc.
(collectively, "Sun TV") filed voluntary petitions under Chapter 11 of the
United States Bankruptcy Code, Case No. 98-2107 (MFW) in the United States
Bankruptcy Court for the District of Delaware. Sun TV must file a Monthly
Operating Report ("MOR") with the Office of the United States Trustee. The MORs
for May 1999 and June 1999 are attached hereto as Exhibits 99.1 through 99.2 and
are incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit No. Description
99.1 Monthly Operating Report for May 1999.
99.2 Monthly Operating Report for June 1999.
-2-
<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.
SUN TELEVISION AND APPLIANCES, INC.
Date: December 6, 1999 By: /s/ James Moran
---------------------------
James Moran, President
<PAGE> 4
EXHIBIT INDEX
SUN TELEVISION AND APPLIANCES, INC.
FORM 8-K
Exhibit No. Description
99.1 Monthly Operating Report for May 1999.
99.2 Monthly Operating Report for June 1999.
<PAGE> 1
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-1
ACCRUAL BASIS - UNAUDITED
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
<TABLE>
<CAPTION>
======================================================================================================================
Document Previously Explanation
Required attachments Attached Submitted Attached
<S> <C> <C> <C>
1. Tax Receipts ( ) ( ) ( N/A )
2. Bank Statements ( X ) ( ) ( )
3. Most recently filed ( ) ( X ) ( )
Income Tax Return
4. Most recent Annual Financial ( ) ( X ) ( )
Statements prepared by accountant
</TABLE>
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I
DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING
MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-9) AND THE
ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS
ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN
RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY
KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ BETH A. SAVAGE CHIEF FINANCIAL OFFICER
- ------------------------------------------ -----------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
BETH A. SAVAGE 9/17/99
- ------------------------------------------ -----------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ DONNA M. ZIANNI ASSISTANT CONTROLLER
- ------------------------------------------ -----------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
DONNA M. ZIANNI 9/17/99
- ------------------------------------------ -----------------------
PRINTED NAME OF PREPARER DATE
All Chapter 11 debtors must file this report with the Court and serve
a copy on the United States Trustee no later than the 15th day of the
month following the end of the month covered by the report.
<PAGE> 2
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-2
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
COMPARATIVE BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
ASSETS MAR-99 APR-99 MAY-99
---------- ---------- ----------
03-APR-99 01-MAY-99 29-MAY-99
---------- ---------- ----------
<S> <C> <C> <C>
1. CASH 16,516,897 15,894,145 18,225,981
2. ACCOUNTS RECEIVABLE 4,377,658 4,302,214 1,821,237
3. INVENTORY 0 0 0
4. NOTES RECEIVABLE 0 0 0
5. PREPAID EXPENSES 906,015 860,496 835,444
6. OTHER (CREDIT CARD RESERVES) 2,461,426 2,461,426 2,461,426
7. TOTAL CURRENT ASSETS 24,261,996 23,518,281 23,344,088
8. PROPERTY, PLANT & EQUIPMENT, net 0 0 0
9. ASSETS HELD FOR SALE 272,845 272,845 272,845
10. TOTAL PROPERTY, PLANT & EQUIP 272,845 272,845 272,845
11. DUE FROM AFFILIATES & INSIDERS 0 0 0
12. INTANGIBLES (ATTACH LIST) 0 0 0
13. OTHER (PREPAID FINANCE FEES) 0 0 0
14. TOTAL ASSETS 24,534,841 23,791,126 23,616,933
========== ========== ==========
POSTPETITION LIABILITIES
15. ACCOUNTS PAYABLE & ACCRUALS 1,096,046 1,324,972 1,569,549
16. TAXES PAYABLE 0 0 0
17. NOTES PAYABLE 0 0 0
18. PROFESSIONAL FEES 1,258,933 991,775 1,102,070
19. SECURED DEBT 0 0 0
20. DUE TO AFFILIATES & INSIDERS 0 0 0
21. OTHER - (DEFERRED REVENUE from Service Policies) 0 0 0
22. TOTAL POSTPETITION
LIABILITIES 2,354,979 2,316,747 2,671,619
========== ========== ==========
PREPETITION LIABILITIES
23. SECURED DEBT 0 0 0
24. PRIORITY DEBT 0 0 0
25. UNSECURED DEBT 57,477,939 57,469,414 57,212,043
26. OTHER 0 0 0
27. TOTAL PREPETITION LIABILITIES 57,477,939 57,469,414 57,212,043
28. TOTAL LIABILITIES 59,832,918 59,786,161 59,883,662
========== ========== ==========
EQUITY
29. PREPETITION OWNERS' EQUITY (1,334,175) (1,334,175) (1,334,175)
30. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) (33,963,902) (34,660,860) (34,932,554)
31. TOTAL EQUITY (DEFICIT) (35,298,077) (35,995,035) (36,266,729)
32. TOTAL LIABILITIES &
OWNERS' EQUITY 24,534,841 23,791,126 23,616,933
</TABLE>
NOTES FOR MONTH ENDING MAY 29, 1999:
ITEM 5: Prepaids primarily consist of retainers for professional fees of $0.5
million.
ITEM 25: Consists of Accounts Payable, Accrued Liabilities and Customer Refunds.
<PAGE> 3
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-3
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
INCOME STATEMENT
(UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
REVENUES MAR-99 APR-99 MAY-99
---------- ---------- ----------
03-APR-99 01-MAY-99 29-MAY-99
---------- ---------- ----------
<S> <C> <C> <C>
1. GROSS REVENUES 19,447 4,998 2,989
2. COST OF GOODS SOLD 5,427 35,739 304
3. GROSS PROFIT 14,020 (30,741) 2,685
========== ========= ========
OPERATING EXPENSES
4. Payroll 209,964 101,261 69,969
5. Payroll Taxes 16,337 7,510 4,727
6. Employee Benefits (83,864) 5,046 (10,912)
7. Depreciation and Amortization 0 0 0
8. Occupancy Costs 213,550 115,964 41,423
9. Advertising 0 0 0
10. Store Delivery 0 0 0
11. Home Delivery 0 0 0
12. Financing Costs 461 0 (1,975)
13. Equipment Rental 192,955 23,002 18,715
14. Outsource Services 1,042 0 0
15. Taxes 0 0 0
16. Insurance 50,000 25,000 20,000
17. Legal and Professional 13,706 34,626 28,445
18. Impairment of Long-Lived Assets 0 0 0
19. Reversal of Restructuring Charge 0 0 0
20. Finance and other receivables write-off 0 0 0
21. Other (Attach List) 13,341 469 14,580
22. TOTAL OPERATING EXPENSES 627,492 312,878 184,972
23. OPERATING INCOME (613,472) (343,619) (182,287)
========== ========= ========
OTHER INCOME & EXPENSES
24. OTHER INCOME - Interest 0 0 0
25. OTHER EXPENSES (ATTACH LIST) 0 0 0
26. INTEREST EXPENSE 0 (1,516) 0
27. OTHER - Loss (gain) on sale of assets 99,588 (630) 0
28. NET OTHER INCOME & EXPENSES 99,588 (2,146) 0
29. LOSS BEFORE REORGANIZATION EXPENSES,
TAXES AND EXTRAORDINARY ITEM (713,060) (341,473) (182,287)
REORGANIZATION EXPENSES
30. PROFESSIONAL FEES 605,419 389,865 143,591
31. U.S. TRUSTEE FEES 0 20,500 0
32. INTEREST INCOME (64,219) (58,460) (62,029)
33. OTHER (ATTACH LIST) 0 3,581 7,844
34. TOTAL REORGANIZATION EXPENSES 541,200 355,486 89,406
35. INCOME TAX 0 0 0
36. LOSS BEFORE EXTRAORDINARY ITEM (1,254,260) (696,959) (271,693)
37. EXTRAORDINARY LOSS - EARLY EXTINGUISHMENT OF DEBT 0 0 0
38. EXTRAORDINARY GAIN - RECOGNITION OF DEFERRED
SERVICE POLICY REVENUE 0 0 0
39. EXTRAORDINARY GAIN - ABANDONMENT OF PROPERTY
UNDER CAPITAL LEASE AND REJECTION OF RELATED
LEASE OBLIGATIONS
40. NET LOSS (1,254,260) (696,959) (271,693)
========== ========= ========
</TABLE>
NOTES FOR MONTH ENDING MAY 29, 1999:
ITEM 21: Primarily consists of telephone, repairs/maintenance, supplies,
employee expenses and bank fees.
<PAGE> 4
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-4
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND MAR-99 APR-99 MAY-99
DISBURSEMENTS ------------- ------------- -------------
03-APR-99 01-MAY-99 29-MAY-99
------------- ------------- -------------
<S> <C> <C> <C>
1. CASH-BEGINNING OF MONTH 17,855,845.23 16,214,555.28 16,303,341.73
RECEIPTS
2. CASH SALES 0.00 0.00 0.00
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00 0.00 2,482,480.09
3a. Liquidator reimbursement for expenses paid by Sun 99,054.85 0.00 0.00
4. LOANS & ADVANCES (ATTACH LIST) 0.00 0.00 0.00
5. SALE OF ASSETS 220,285.70 0.00 0.00
6. OTHER 389,922.84 1,066,552.03 46,074.68
7. TOTAL RECEIPTS 709,263.39 1,066,552.03 2,528,554.77
8. TOTAL CASH AVAILABLE 18,565,108.62 18,281,107.31 18,831,896.50
CURRENT MONTH DISBURSEMENTS
<CAPTION>
03-APR-99 01-MAY-99 29-MAY-99
------------ ------------- -------------
PURPOSE AMOUNT AMOUNT AMOUNT
------------ ------------- -------------
<S> <C> <C> <C>
9. BANK FEES AND DEBT PAYDOWN 7,377.47 0.00 0.00
10. ADVERTISING 27,829.86 0.00 0.00
11. MERCHANDISE/PARTS 10,497.88 0.00 246.82
12. PAYROLL 174,283.79 107,553.72 87,531.81
13. STORE RENT 63,529.66 119,380.10 38,905.39
14. EQUIPMENT RENT 214,913.12 23,002.48 0.00
15. CONSTRUCTION 0.00 0.00 0.00
16. EMPLOYEE EXPENSES/UNIFORMS 10,186.75 4,966.15 4,624.84
17. FREIGHT/POSTAGE 20.18 18.00 0.00
18. GASOLINE 2,637.43 0.00 0.00
19. HOTEL/AIR FARE 5,289.00 0.00 0.00
20. INSURANCE 97,814.80 55,831.95 27,690.43
21. WORKERS COMPENSATION 59,028.40 21,878.53 15,461.98
22. 401 K 0.00 6,576.20 0.00
23. MISCELLANEOUS 0.00 4,199.42 8,598.29
24. GARNISHMENTS 1,302.50 497.54 342.92
25. SUPPLIES/MAINTENANCE 14,988.54 138.01 8,666.68
26. CUSTOMER REFUNDS 0.00 0.00 0.00
27. SECURITY 3,518.40 0.00 0.00
28. TAXES 45,405.57 3,507.91 0.00
29. TEMPORARY HELP SERVICES 5,782.93 778.50 200.00
30. UTILITIES 97,786.76 17,571.30 12,452.72
31. WASTE REMOVAL 6,855.00 4,460.00 280.00
32. CONSULTING 11,269.46 28,942.00 31,877.00
33. THIRD PARTY SERVICERS 0.00 0.00 0.00
34. PETTY CASH 0.00 0.00 0.00
35. REBATES 0.00 0.00 0.00
36. WARRANTY SERVICER 253.00 35,559.70 57.00
37. Reimbursement to liquidators for
sales at closing stores 0.00 0.00 0.00
38. U.S. TRUSTEE FEES 0.00 20,500.00 0.00
39. PROFESSIONAL FEES 1,424,917.97 641,406.24 184,397.71
40. TOTAL DISBURSEMENTS 2,285,488.47 1,096,767.75 421,333.59
41. END OF MONTH BALANCE 16,214,555.28 16,303,341.73 18,419,339.76
</TABLE>
ITEMS 1 & 41: Beginning and Ending Cash balances reflect balances per bank
statements.
ITEM 6: Consists of various miscellaneous corporate deposits.
ITEMS 9 - 40: Disbursements reflect wire and/or ACH transfers and checks
written during the period May 2, 1999 through May 29, 1999.
<PAGE> 5
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-5
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE AGING
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
0 - 30 days old 0.00
31 - 60 days old 0.00
61 - 90 days old 0.00
91+ days old 2,187,716.06
TOTAL ACCOUNTS RECEIVABLE 2,187,716.06
AMOUNTS CONSIDERED UNCOLLECTIBLE (920,682.19)
ACCOUNTS RECEIVABLE (NET) 1,267,033.87
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
AGING OF POST PETITION TAXES AND PAYABLES
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE (A) 1,301,619.00 20,000.00 50,000.00 1,300,000.00 2,671,619.00
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE A: Sun's Accounts Payable system does not age the A/P; above aging
represents estimate based on review of the accounts payable detail.
<TABLE>
STATUS OF POST PETITION TAXES
- --------------------------------------------------------------------------------------------------------------------------
AMOUNT
BEGINNING WITHHELD ENDING
TAX AND/ OR AMOUNT TAX DELINQUENT
LIABILITY* ACCRUED PAID LIABILITY TAXES
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FEDERAL
WITHHOLDING** 0.00 14,879.38 14,879.38 0.00
FICA-EMPLOYEE** 0.00 5,475.14 5,475.14 0.00
FICA-EMPLOYER** 0.00 5,475.12 5,475.12 0.00
UNEMPLOYMENT 0.00 55.67 55.67 0.00
INCOME 0.00 0.00 0.00 0.00
OTHER (ATTACH LIST) 0.00 0.00 0.00 0.00
TOTAL FEDERAL TAXES 0.00 25,885.31 25,885.31 0.00 0.00
STATE AND LOCAL
WITHHOLDING 0.00 5,125.94 5,125.94 0.00
SALES AND USE 0.00 0.00 0.00 0.00
EXCISE 0.00 0.00 0.00 0.00
MERCANTILE 4,337.62 (4,337.62) 0.00 0.00
UNEMPLOYMENT 0.00 310.32 310.32 0.00
REAL PROPERTY 0.00 0.00 0.00 0.00
PERSONAL PROPERTY 0.00 0.00 0.00 0.00
PENNSYLVANIA OCCUPATIONAL 0.00 0.00 0.00 0.00
NEW YORK DISABILITY 0.00 0.00 0.00 0.00
OTHER (ATTACH LIST) 0.00 0.00 0.00 0.00
TOTAL STATE AND LOCAL 4,337.62 1,098.64 5,436.26 0.00 0.00
TOTAL TAXES 4,337.62 26,983.95 31,321.57 0.00 0.00
</TABLE>
* The beginning tax liability should represent the liability from the
prior month or, if this is the first operating report, the amount
should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment
receipt to verify payment of deposit.
<PAGE> 6
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-6
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
THE DEBTOR IN POSSESSION MUST COMPLETE THE RECONCILIATION BELOW FOR EACH BANK
ACCOUNT, INCLUDING ALL GENERAL, PAYROLL AND TAX ACCOUNTS, AS WELL AS ALL SAVINGS
AND INVESTMENT ACCOUNTS, MONEY MARKET ACCOUNTS, CERTIFICATES OF DEPOSIT,
GOVERNMENT OBLIGATIONS, ETC. ACCOUNTS WITH RESTRICTED FUNDS SHOULD BE IDENTIFIED
BY PLACING AN ASTERISK NEXT TO THE ACCOUNT NUMBER. ATTACH ADDITIONAL SHEETS IF
NECESSARY.
<TABLE>
<CAPTION>
BANK RECONCILIATION
- ---------------------------------------------------------------------------------------------------------------------------------
ACCOUNT #1 ACCOUNT #2 ACCOUNT #3
---------- ---------- ----------
<S> <C> <C> <C> <C>
A. BANK: SEE NOTE BELOW
B. ACCOUNT NUMBER: TOTAL
C. PURPOSE (TYPE):
- ---------------------------------------------------------------------------------------------------------------------------------
1. BALANCE PER BANK STATEMENT
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS
4. OTHER RECONCILING ITEMS (ATTACH LIST)
5. MONTH END BALANCE PER BOOKS
6. NUMBER OF LAST CHECK WRITTEN
</TABLE>
NOTE: Bank Reconciliations for May 1999, copies of bank statements as of
the end of May for all bank accounts, and a summary of the activity
in each account are included with this MOR. See MOR-6 supporting
schedules.
<TABLE>
<CAPTION>
INVESTMENT ACCOUNTS
- ---------------------------------------------------------------------------------------------------------------------------------
DATE OF TYPE OF PURCHASE CURRENT
BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
- -------------------------- -------- ---------- ----- -----
<S> <C> <C> <C> <C>
7. NatCity Investments - 509394078 12/31/98 Govt Money Market 1,218,977.77 1,218,977.77
8. NatCity Investments - 509394035 12/31/98 Govt Money Market 16,481,001.02 16,481,001.02
9.
10.
11. TOTAL INVESTMENTS 17,699,978.79 17,699,978.79
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
CASH
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
12. CURRENCY ON HAND - per the Company's Bank Statements 719,360.97
13. TOTAL CASH-END OF MONTH (Total of lines 5, 11, & 12) 18,419,339.76
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-7
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
- -----------------------------------------------------------------------------------------------------------------------------------
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID
TO INSIDERS (AS DEFINED IN SECTION 101(31)(A)-(F) OF THE U.S. BANKRUPTCY CODE)
AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF
COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING
ALLOWANCE TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.
- ---------------------------------------------------------------------------------------------------
INSIDERS
- --------------------------------------------------------------------------------------------------- CUMULATIVE
TYPE OF AMOUNT UNPAID
NAME POSITION PAYMENT PAID BALANCE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BETH SAVAGE CFO, Treasurer & Secretary salary $12,307.70 $0.00
bonus $ 0.00
expenses $ 0.00
2. JIM ROMERO VP Operations salary $11,230.76 $0.00
bonus $ 0.00
expenses $ 0.00
3. JAMES MORAN President expenses $ 4,551.69
4. TOTAL PAYMENTS TO INSIDERS $28,090.15 $0.00
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PROFESSIONALS
- -----------------------------------------------------------------------------------------------------------------------------------
TYPE DATE OF COURT
OF ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID
NAME PROFESSIONAL PAYMENT APPROVED PAID TO DATE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Kirkland & Ellis Attorney 09/16/98 0.00 0.00 402,044.85
2. Business Regeneration Services Accountant 09/16/98 0.00 0.00 713,746.50
3. KPMG Peat Marwick LLP Accountant 09/16/98 7,580.00 7,580.00 98,427.00
4. Otterbourg, Steindler, Houston & Attorney 09/16/98 0.00 0.00 430,447.62
5. Porter, Wright, Morris & Arthur Attorney 09/16/98 6,931.43 6,931.43 100,919.52
6. Young, Conaway, Stargatt & Attorney 09/16/98 0.00 0.00 190,944.05
7. Donlin, Recano & Company, Inc. Claims Consultant 09/16/98 0.00 0.00 345,890.91
8. Ernst & Young LLP Accountant 09/16/98 0.00 0.00 385,760.40
9. D.G. Hart Associates, Inc. Consultant 11/10/98 16,321.90 16,321.90 120,763.67
10. Pepper Hamilton LLP Attorney 11/05/98 0.00 0.00 18,051.19
11. Milbank, Tweed, Hadley & McCloy Attorney 11/23/98 153,564.38 153,564.38 736,809.15
----------- ---------- ------------
12. TOTAL PAYMENTS TO PROFESSIONALS 184,397.71 184,397.71 3,543,804.86
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
ADEQUATE PROTECTION PAYMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. BankBoston Retail Finance, Inc. Term Loan Interest due the first day of 0.00 None
2. each month
3.
4.
5.
6. TOTAL 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 8
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-8
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
QUESTIONNAIRE YES NO
- ------------- --- --
<S> <C> <C>
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS
THIS REPORTING PERIOD? X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION
ACCOUNT? X
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? X
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD? X
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? X
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? X
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? X
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? X
12. ARE ANY WAGE PAYMENTS PAST DUE? X
- -------------------------------------------------------------------------------------------------------------
</TABLE>
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
ITEM #2 - In accordance with a first day motion approved by the Bankruptcy
Court, Sun Television's existing pre-petition bank accounts are
Debtor-in-Possession bank accounts.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
INSURANCE YES NO
- --------- --- --
<S> <C> <C>
1. ARE WORKERS COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
3. PLEASE ITEMIZE POLICIES BELOW. X
- -------------------------------------------------------------------------------------------------------------
</TABLE>
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE
BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN
EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
ITEM 2: Note that approximately $10,000 in General Liability insurance premium
related to several new stores opened during fiscal 1999 were NOT billed
to the Company until subsequent to the Petition Date and are therefore
included as a Pre-petition debt.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INSURANCE POLICIES
- ------------------------------------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
- ------ ------- -------------- -----------
<S> <C> <C> <C>
Commercial Property & Casualty C N A 10/1/98 through 9/30/99 - $287,100 paid 10/1/98
Directors & Officers Liability Genesis Insurance Co. 7/21/98 through 7/21/99 - $199,000 paid in full
7/27/98
Workers Compensation Various State Funds 11/19/98 through final store - $113,740 paid 11/13/98
closing date in various states (A)
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE A: Sun applied for state fund coverage in Pennsylvania, Indiana, Virginia,
New York and Kentucky. No coverage was necessary for Tennessee as final
store closed in that state on November 8, 1998. Sun was required to
apply for State Fund coverage for WC due to the EBI Companies denying
coverage after the 30 day extension period. Sun is still self-insured
in Ohio. As of the end of May, final audits had been completed for
Pennsylvania, Indiana, Virginia, New York and Kentucky, to determine
any required premium adjustments and close the accounts.
<PAGE> 9
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-9
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING MAY 29, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
PERSONNEL
- -------------------------------------------------------------------------------------------------------
FULL TIME PART TIME TOTAL
--------- --------- -----
<S> <C> <C> <C>
1. Total number of employees at beginning of period 25 0 25
2. Number of employees hired during the period 0 0 0
3. Number of employees terminated or resigned during the period (5) 0 (5)
4. Total number of employees on payroll at end of period 20 0 20
</TABLE>
- -------------------------------------------------------------------------------
CHANGE OF ADDRESS
- -------------------------------------------------------------------------------
If your mailing address has changed and you have not previously notified the
United States Trustee of the change, list your new address below:
DATE OF CHANGE: _______N/A______________
NEW ADDRESS: ___________________N/A________________________
<PAGE> 10
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
MAY 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
SUMMARY OF BANK STATEMENT ACTIVITY
<PAGE> 11
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-4 SUPPORTING SCHEDULE
<TABLE>
<CAPTION>
BANK BANKBOSTON NATIONAL CITY NATIONAL CITY NATIONAL CITY NATIONAL CITY THE OHIO
BANK
ACCOUNT NAME BRF, INC. FOR
PROCEEDS FROM WORKERS PROFESSIONAL STORE
SUN TV & APPLIANCES CONCENTRATION COMPENSATION PAYROLL FEES DEPOSITS
ACCOUNT NUMBER 804-81979 394035037 3941035053 394035045 394078205 7067480
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE 5/1/99 (1,686.10) 154,346.54 22,497.08 33,451.76 1,000.00 1,422.87
MISCELLANEOUS CORPORATE
DEPOSITS 46,074.68
BENEFICIAL FINANCE RECEIPTS 2,482,480.09
TRANSFERS FROM SMALL BANKS --
CREDIT CARD DEPOSITS, NET 766.13
TRANSFERS TO/FROM BANKBOSTON
A/C 898-28038 1,680.08 --
WIRE TSF TO SUN TV
CONCENTRATION ACCOUNT -- --
WIRE TSF TO VENDORS (27,690.43)
WIRE TSF TO NCB A/CS - P/R, W/C,
HEALTH INS, PROF FEES (102,619.40) 15,461.98 87,157.42
WIRE TSF FROM/TO SUN TV SEI
INVESTMENT FUND (1,549,208.77)
CHECKS PAID (343,761.31) (14,161.48) (19,974.66)
WIRES OUT - DIRECT DEP. & P/R TAX (66,718.07)
NSF CHECKS --
BANK/CREDIT CARD FEES (330.00) (796.36) (31.08)
---------- ------------- ---------- ---------- -------- --------
BALANCE 5/29/99 430.11 658,825.04 23,797.58 33,916.45 1,000.00 1,391.79
========== ============= ========== ========== ======== ========
Beginning of month balance
- all accounts 211,032.15
==========
End of month balance - all accounts 719,360.97
==========
</TABLE>
<PAGE> 12
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS IN POSSESSION
CASE NO. 98-2107 AND 98-2109
MAY 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
DETAIL LISTING OF ACH AND WIRE TRANSFERS
<PAGE> 13
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS IN POSSESSION
CASE NO. 98-2107 AND 98-2109
FOR THE MONTH ENDING MAY 29, 1999
(COVERING THE PERIOD MAY 2, 1999 THROUGH MAY 29, 1999)
MOR-4 SUPPORTING SCHEDULE
SUMMARY OF ACH AND WIRE TRANSFERS DURING PERIOD
<TABLE>
<CAPTION>
Type Date Vendor Amount ACH/Wire
- ---- ---- ------ ------ --------
<S> <C> <C> <C> <C>
Insurance 5/7/99 Medical Mutual 11,491.71 Wire
Insurance 5/14/99 Medical Mutual 2,269.36 Wire
Insurance 5/21/99 Medical Mutual 13,929.36 Wire
-----------
Total Insurance 27,690.43
-----------
Payroll 5/6/99 ADP 50,791.23 ACH
Payroll 5/20/99 ADP 36,366.19 ACH
-----------
Total Payroll 87,157.42
-----------
Workers Comp 5/7/99 M&N Risk Management $ 5,744.65 ACH
Workers Comp 5/19/99 M&N Risk Management $ 5,675.78 ACH
Workers Comp 5/24/99 M&N Risk Management $ 4,041.55 ACH
-----------
Total Workers Compensation 15,461.98
-----------
TOTAL WIRE AND ACH TRANSFERS 130,309.83
===========
</TABLE>
<PAGE> 14
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
MAY 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
DETAIL LISTING OF CHECKS WRITTEN
<PAGE> 15
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
(Debtors-in-Possession)
Case No. 98-2107 and 98-2109
MOR-4 SUPPORTING SCHEDULE
POST-PETITION CHECKS FOR THE PERIOD 5/2/99 THROUGH 5/29/99
(Associate payroll checks are not included)
<TABLE>
<CAPTION>
- ----------------
CHECK DATE
- ----------------
YEAR MON DAY CHECK# PAYEE TYPE AMOUNT
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
99 5 10 713541 MAPSYS INC Consulting 3,806.00
99 5 20 713584 MAPSYS INC Consulting 2,240.00
99 5 17 713558 MELROSE CONSULTING Consulting 1,800.00
99 5 7 713538 OPEN TECHNOLOGY GROUP INC Consulting 5,319.00
99 5 10 713540 OPEN TECHNOLOGY GROUP INC Consulting 4,662.00
99 5 17 713555 OPEN TECHNOLOGY GROUP INC Consulting 2,520.00
99 5 24 713593 OPEN TECHNOLOGY GROUP INC Consulting 5,040.00
99 5 17 713560 SOPHISTICATED SYSTEMS INC Consulting 6,490.00
- -----------------------------------------------------------------------------------------------
Consulting 31,877.00
- -----------------------------------------------------------------------------------------------
99 5 20 713577 MILLER'S TOTAL CLEANING PLUS Contract Labor 200.00
- -----------------------------------------------------------------------------------------------
Contract Labor 200.00
- -----------------------------------------------------------------------------------------------
99 5 13 713549 JAMES MORAN Employee Expense 2,925.91
99 5 20 713582 JAMES MORAN Employee Expense 1,625.78
99 5 7 713536 PATTY BALL Employee Expense 47.83
99 5 20 713588 SANDY WEBB Employee Expense 25.32
- -----------------------------------------------------------------------------------------------
Employee Expense 4,624.84
- -----------------------------------------------------------------------------------------------
99 5 4 713532 CHAPTER 13 TRUSTEE Garnishment 154.62
99 5 4 713534 PHEAA Garnishment 94.15
99 5 19 713574 PHEAA Garnishment 94.15
- -----------------------------------------------------------------------------------------------
Garnishment 342.92
- -----------------------------------------------------------------------------------------------
99 5 20 713587 HAWKEYE INFMTN SYSTEMS INC Maintenance 250.00
99 5 24 713594 IBM Maintenance 8,416.68
- -----------------------------------------------------------------------------------------------
Maintenance 8,666.68
- -----------------------------------------------------------------------------------------------
99 5 19 713575 B-I-C AMERICA Merchandise 246.82
- -----------------------------------------------------------------------------------------------
Merchandise 246.82
- -----------------------------------------------------------------------------------------------
99 5 20 713581 ELEKTRO KOPY EXPRESS Miscellaneous 436.16
99 5 17 713563 KINKO'S Miscellaneous 304.04
99 5 18 713565 QUIKPRO COURIER Miscellaneous 14.00
99 5 17 713557 THE MEDLEH GROUP Miscellaneous 7,844.09
- -----------------------------------------------------------------------------------------------
Miscellaneous 8,598.29
- -----------------------------------------------------------------------------------------------
99 5 4 713531 AUTOMATIC DATA PROCESSING Payroll 65.67
99 5 12 713544 AUTOMATIC DATA PROCESSING Payroll 287.72
99 5 26 713596 AUTOMATIC DATA PROCESSING Payroll 21.00
- -----------------------------------------------------------------------------------------------
Payroll 374.39
- -----------------------------------------------------------------------------------------------
99 5 17 713556 D.G. HART ASSOCIATES INC. Professional 11,388.70
99 5 20 713583 D.G. HART ASSOCIATES INC. Professional 2,724.00
99 5 20 713590 D.G. HART ASSOCIATES INC. Professional 2,209.20
99 5 17 713553 KPMG PEAT MARWICK LLP Professional 7,580.00
99 5 17 713561 MILBANK,TWEED,HADLEY & MCCLOY Professional 153,564.38
99 5 17 713559 PORTER WRIGHT MORRIS & ARTHUR Professional 6,931.43
- -----------------------------------------------------------------------------------------------
Professional 184,397.71
- -----------------------------------------------------------------------------------------------
99 5 13 713551 DUKE REALTY LIMITED PRTNRSHP Rent 4,029.76
99 5 3 713529 HUNTINGTON MALL Rent 11,419.40
99 5 17 713554 JBG/ROSENFELD-LEB Rent 8,194.48
99 5 20 713586 WAL MART STORES INC Rent 15,261.75
- -----------------------------------------------------------------------------------------------
Rent 38,905.39
- -----------------------------------------------------------------------------------------------
99 5 12 713547 MCGLONE INC. Trash Removal 280.00
- -----------------------------------------------------------------------------------------------
Trash Removal 280.00
- -----------------------------------------------------------------------------------------------
99 5 24 713592 AERIAL COMMUNICATIONS Utilities 53.18
99 5 12 713543 AMERICAN ELECTRIC POWER Utilities 1,334.62
99 5 20 713579 AMERICAN ELECTRIC POWER Utilities 2,494.37
99 5 20 713585 AMERITECH Utilities 644.15
99 5 20 713580 CITY OF N CANTON PUBLIC UTLTS Utilities 111.65
99 5 19 713568 COLUMBIA GAS OF KENTUCKY Utilities 79.01
99 5 19 713571 EAST OHIO GAS CO Utilities 2,484.46
99 5 19 713567 FRANKFORT ELECTRIC & WATER Utilities 1,375.23
99 5 19 713569 GREEN RIVER ELECTRIC CO Utilities 1,356.83
99 5 19 713572 OHIO EDISON CO Utilities 2,350.36
99 5 19 713570 WESTERN KENTUCKY GAS COMPANY Utilities 60.10
99 5 12 713545 WV-AMERICAN WATER CO Utilities 108.76
- -----------------------------------------------------------------------------------------------
Utilities 12,452.72
- -----------------------------------------------------------------------------------------------
99 5 4 713533 VAC SERVICE CORP Warranty 57.00
- -----------------------------------------------------------------------------------------------
Warranty 57.00
- -----------------------------------------------------------------------------------------------
TOTAL POST-PETITION CHECKS $291,023.76
</TABLE>
<PAGE> 16
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
MAY 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-5
PAYROLL TAXES
<PAGE> 17
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
(DEBTORS-IN-POSSESSION)
CASE NO. 98-2107 AND 98-2109
MOR-5 SUPPORTING SCHEDULE
PAYROLL TAXES PAYMENT - SUPPORTING DOCUMENTATION
FOR THE MONTH ENDING MAY 29, 1999
<TABLE>
<CAPTION>
Deposit Federal Employee Employer
Date Income Tax FICA Tax FICA Tax Totals
- --------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C>
11-May-99 $ 8,851.03 $3,259.93 $3,259.92 $15,370.88
25-May-99 $ 6,028.35 $2,215.21 $2,215.20 $10,458.76
---------- --------- --------- ----------
$14,879.38 $5,475.14 $5,475.12 $25,829.64
========== ========= ========= ==========
</TABLE>
<PAGE> 18
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
MAY 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-6
BANK RECONCILIATIONS
<PAGE> 19
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-6 SUPPORTING SCHEDULE
MAY BANK RECONCILIATIONS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
A. BANK: THE OHIO BANK BANKBOSTON NATIONAL CITY NATIONAL CITY NATIONAL CITY NATIONAL CITY
B. ACCOUNT NUMBER: 7067480 804-81979 394035037 3941035053 394078205 394035045
C. PURPOSE (TYPE): STORE DEPOSITS BBRF PROCEEDS CONCENTRATION WORKERS COMP PROF. FEES PAYROLL
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT 1,391.79 430.11 658,825.04 23,797.58 1,000.00 33,916.45
2. ADD: TOTAL DEPOSITS NOT CREDITED -- -- 6,569.27 -- -- --
3. ADD: OUTSTANDING WIRE TRANSFERS -- -- -- -- -- --
4. SUBTRACT: OUTSTANDING CHECKS N/A N/A (153,987.34) (4,718.77) -- (26,396.63)
5. SUBTRACT: OUTSTANDING WIRE TRANSFERS -- -- -- -- -- --
6. OTHER RECONCILING ITEMS -- (430.11) 585.87 -- -- --
7. ADJUSTED BANK BALANCE 1,391.79 -- 511,992.84 19,078.81 1,000.00 7,519.82
8. MONTH END BALANCE PER BOOKS 1,417.04 -- 516,284.43 22,626.92 1,000.00 (16,725.87)
9. LESS: NSF CHECKS -- -- -- -- -- --
10. LESS: BANK/CREDIT CARD FEES (25.25) -- -- -- -- --
11. ADD/(LESS): DEPOSIT DIFFERENCES -- -- -- -- -- --
12. OTHER RECONCILING ITEMS (ATTACH LIST) -- -- (4,291.59) (3,548.11) -- 24,245.69
13. ADJUSTED BALANCE PER BOOKS 1,391.79 -- 511,992.84 19,078.81 1,000.00 7,519.82
14. NUMBER OF LAST CHECK WRITTEN N/A N/A #713596 #7477 N/A #
</TABLE>
<PAGE> 20
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-6 SUPPORTING SCHEDULE
MAY BANK RECONCILIATIONS
OTHER RECONCILING ITEMS
<TABLE>
<CAPTION>
<S> <C>
OTHER RECONCILING ITEMS:
BANKBOSTON
804-81979
BBRF PROCEEDS
Other reconciling items - Bank
---------
Credit card adjustments (430.11)
=========
NATIONAL CITY
394035037
CONCENTRATION
Other reconciling items - Bank
---------
Checks shown as outstanding, should be void 585.87
=========
Other reconciling items - Book
Check void on G/L, paid by bank (4,438.84)
Check stopped on bank, not void on G/L 147.25
---------
(4,291.59)
=========
NATIONAL CITY
3941035053
WORKERS COMP
Checks not booked (3,548.11)
---------
(3,548.11)
=========
NATIONAL CITY
394035045
PAYROLL
Payroll transfer booked, not made until 6/4/99 24,217.38
Miscellaneous reconciling items 28.31
---------
24,245.69
=========
</TABLE>
<PAGE> 1
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-1
ACCRUAL BASIS - UNAUDITED
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
<TABLE>
<CAPTION>
================================================================================================================
Document Previously Explanation
Required attachments Attached Submitted Attached
<S> <C> <C> <C>
1. Tax Receipts ( ) ( ) ( N/A )
2. Bank Statements ( X ) ( ) ( )
3. Most recently filed ( ) ( X ) ( )
Income Tax Return
4. Most recent Annual Financial ( ) ( X ) ( )
Statements prepared by accountant
IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY
THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-9)
AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND
COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF
WHICH PREPARER HAS ANY KNOWLEDGE.
RESPONSIBLE PARTY:
/s/ BETH A. SAVAGE CHIEF FINANCIAL OFFICER
-------------------------------------------------------- ----------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
/s/ BETH A. SAVAGE 9/17/99
-------------------------------------------------------- ----------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ DONNA M. ZIANNI ASSISTANT CONTROLLER
-------------------------------------------------------- ----------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
/s/ DONNA M. ZIANNI 9/17/99
-------------------------------------------------------- ----------------------------------
PRINTED NAME OF PREPARER DATE
All Chapter 11 debtors must file this report with the Court and serve a copy on the United States Trustee
no later than the 15th day of the month following the end of the month covered by the report.
</TABLE>
<PAGE> 2
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-2
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
COMPARATIVE BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
ASSETS APR-99 MAY-99 JUN-99
01-MAY-99 29-MAY-99 03-JUL-99
--------- --------- ---------
<S> <C> <C> <C>
1. CASH 15,894,145 18,225,981 17,791,698
2. ACCOUNTS RECEIVABLE 4,302,214 1,821,237 1,543,475
3. INVENTORY 0 0 0
4. NOTES RECEIVABLE 0 0 0
5. PREPAID EXPENSES 860,496 835,444 820,444
6. OTHER (CREDIT CARD RESERVES) 2,461,426 2,461,426 2,461,426
7. TOTAL CURRENT ASSETS 23,518,281 23,344,088 22,617,043
8. PROPERTY, PLANT & EQUIPMENT, net 0 0 0
9. ASSETS HELD FOR SALE 272,845 272,845 27,730
10. TOTAL PROPERTY, PLANT & EQUIP 272,845 272,845 27,730
11. DUE FROM AFFILIATES & INSIDERS 0 0 0
12. INTANGIBLES (ATTACH LIST) 0 0 0
13. OTHER (PREPAID FINANCE FEES) 0 0 0
14. TOTAL ASSETS 23,791,126 23,616,933 22,644,773
=========== ========== ==========
POSTPETITION LIABILITIES
15. ACCOUNTS PAYABLE & ACCRUALS 1,324,972 1,569,549 1,320,218
16. TAXES PAYABLE 0 0 0
17. NOTES PAYABLE 0 0 0
18. PROFESSIONAL FEES 991,775 1,102,070 931,605
19. SECURED DEBT 0 0 0
20. DUE TO AFFILIATES & INSIDERS 0 0 0
21. OTHER - (DEFERRED REVENUE from Service Policies) 0 0 0
22. TOTAL POSTPETITION
LIABILITIES 2,316,747 2,671,619 2,251,823
=========== ========== ==========
PREPETITION LIABILITIES
23. SECURED DEBT 0 0 0
24. PRIORITY DEBT 0 0 0
25. UNSECURED DEBT 57,469,414 57,212,043 57,348,630
26. OTHER 0 0 0
27. TOTAL PREPETITION LIABILITIES 57,469,414 57,212,043 57,348,630
=========== ========== ==========
28. TOTAL LIABILITIES 59,786,161 59,883,662 59,600,453
=========== ========== ==========
EQUITY
29. PREPETITION OWNERS' EQUITY (1,334,175) (1,334,175) (1,334,175)
=========== ========== ==========
30. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) (34,660,860) (34,932,554) (35,621,505)
=========== ========== ==========
31. TOTAL EQUITY (DEFICIT) (35,995,035) (36,266,729) (36,955,680)
=========== ========== ==========
32. TOTAL LIABILITIES &
OWNERS' EQUITY 23,791,126 23,616,933 22,644,773
=========== ========== ==========
NOTES FOR MONTH ENDING JULY 3, 1999:
ITEM 5: Prepaids primarily consist of retainers for professional fees of $0.5 million.
ITEM 25: Consists of Accounts Payable, Accrued Liabilities and Customer Refunds.
</TABLE>
<PAGE> 3
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-3
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
INCOME STATEMENT
(UNAUDITED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
REVENUES APR-99 MAY-99 JUN-99
01-MAY-99 29-MAY-99 03-JUL-99
--------- --------- ---------
<S> <C> <C> <C>
1. GROSS REVENUES 4,998 2,989 9,070
2. COST OF GOODS SOLD 35,739 304 82
======== ======== ========
3. GROSS PROFIT (30,741) 2,685 8,988
OPERATING EXPENSES
4. Payroll 101,261 69,969 77,493
5. Payroll Taxes 7,510 4,727 4,831
6. Employee Benefits 5,046 (10,912) (4,144)
7. Depreciation and Amortization 0 0 0
8. Occupancy Costs 115,964 41,423 135,205
9. Advertising 0 0 4,432
10. Store Delivery 0 0 0
11. Home Delivery 0 0 0
12. Financing Costs 0 (1,975) 0
13. Equipment Rental 23,002 18,715 20,037
14. Outsource Services 0 0 0
15. Taxes 0 0 0
16. Insurance 25,000 20,000 15,000
17. Legal and Professional 34,626 28,445 23,492
18. Impairment of Long-Lived Assets 0 0 0
19. Reversal of Restructuring Charge 0 0 0
20. Finance and other receivables write-off 0 0 0
21. Other (Attach List) 469 14,580 11,138
-------- -------- --------
22. TOTAL OPERATING EXPENSES 312,878 184,972 287,484
======== ======== ========
23. OPERATING INCOME (343,619) (182,287) (278,496)
OTHER INCOME & EXPENSES
24. OTHER INCOME - Interest 0 0 0
25. OTHER EXPENSES (ATTACH LIST) 0 0 0
26. INTEREST EXPENSE (1,516) 0 0
27. OTHER - Loss (gain) on sale of assets (630) 0 244,693
28. NET OTHER INCOME & EXPENSES (2,146) 0 244,693
======== ======== ========
29. LOSS BEFORE REORGANIZATION EXPENSES, TAXES AND EXTRAORDINARY ITEM (341,473) (182,287) (523,189)
REORGANIZATION EXPENSES
======== ======== ========
30. PROFESSIONAL FEES 389,865 143,591 215,906
31. U.S. TRUSTEE FEES 20,500 0 0
32. INTEREST INCOME (58,460) (62,029) (67,354)
33. OTHER (ATTACH LIST) 3,581 7,844 17,210
======== ======== ========
34. TOTAL REORGANIZATION EXPENSES 355,486 89,406 165,762
35. INCOME TAX 0 0 0
======== ======== ========
36. LOSS BEFORE EXTRAORDINARY ITEM (696,959) (271,693) (688,951)
======== ======== ========
37. EXTRAORDINARY LOSS - EARLY EXTINGUISHMENT OF DEBT 0 0 0
======== ======== ========
38. EXTRAORDINARY GAIN - RECOGNITION OF DEFERRED SERVICE POLICY REVENUE 0 0 0
======== ======== ========
39. EXTRAORDINARY GAIN - ABANDONMENT OF PROPERTY UNDER CAPITAL LEASE AND
REJECTION OF RELATED LEASE OBLIGATIONS 0 0 0
======== ======== ========
40. NET LOSS (696,959) (271,693) (688,951)
======== ======== ========
NOTES FOR MONTH ENDING JULY 3, 1999:
ITEM 21: Primarily consists of telephone, repairs/maintenance, supplies, employee expenses and bank fees.
ITEM 27: Amount represents the loss on abandonment of furniture,fixtures and leasehold improvements at the Huntington, WV
location for which Sun Television rejected the lease.
</TABLE>
<PAGE> 4
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-4
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND APR-99 MAY-99 JUN-99
DISBURSEMENTS 01-MAY-99 29-MAY-99 03-JUL-99
--------- --------- ---------
<S> <C> <C> <C>
1. CASH-BEGINNING OF MONTH 16,214,555.28 16,303,341.73 18,419,339.76
RECEIPTS
2. CASH SALES 0.00 0.00 0.00
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00 2,482,480.09 0.00
3a. Liquidator reimbursement for expenses
paid by Sun 0.00 0.00 0.00
4. LOANS & ADVANCES (ATTACH LIST) 0.00 0.00 0.00
5. SALE OF ASSETS 0.00 0.00 0.00
6. OTHER 1,066,552.03 46,074.68 407,757.25
------------- ------------- -------------
7. TOTAL RECEIPTS 1,066,552.03 2,528,554.77 407,757.25
============= ============= =============
8. TOTAL CASH AVAILABLE 17,281,107.31 18,831,896.50 18,827,097.01
============= ============= =============
CURRENT MONTH DISBURSEMENTS
01-MAY-99 29-MAY-99 03-JUL-99
PURPOSE AMOUNT AMOUNT AMOUNT
--------- --------- ---------
9. BANK FEES AND DEBT PAYDOWN 0.00 0.00 0.00
10. ADVERTISING 0.00 0.00 4,432.51
11. MERCHANDISE/PARTS 0.00 246.82 0.00
12. PAYROLL 107,553.72 87,531.81 121,460.10
13. STORE RENT 119,380.10 38,905.39 106,945.25
14. EQUIPMENT RENT 23,002.48 0.00 122,166.73
15. CONSTRUCTION 0.00 0.00 0.00
16. EMPLOYEE EXPENSES/UNIFORMS 4,966.15 4,624.84 6,078.17
17. FREIGHT/POSTAGE 18.00 0.00 561.00
18. GASOLINE 0.00 0.00 0.00
19. HOTEL/AIR FARE 0.00 0.00 0.00
20. INSURANCE 55,831.95 27,690.43 1,624.43
21. WORKERS COMPENSATION 21,878.53 15,461.98 11,476.61
22. 401 K 6,576.20 0.00 0.00
23. MISCELLANEOUS 4,199.42 8,598.29 16,684.82
24. GARNISHMENTS 497.54 342.92 188.30
25. SUPPLIES/MAINTENANCE 138.01 8,666.68 604.54
26. CUSTOMER REFUNDS 0.00 0.00 0.00
27. SECURITY 0.00 0.00 0.00
28. TAXES 3,507.91 0.00 0.00
29. TEMPORARY HELP SERVICES 778.50 200.00 3,184.80
30. UTILITIES 17,571.30 12,452.72 67,256.17
31. WASTE REMOVAL 4,460.00 280.00 0.00
32. CONSULTING 28,942.00 31,877.00 9,891.00
33. THIRD PARTY SERVICERS 0.00 0.00 0.00
34. PETTY CASH 0.00 0.00 0.00
35. REBATES 0.00 0.00 0.00
36. WARRANTY SERVICER 35,559.70 57.00 82.00
37. Reimbursement to liquidators for
sales at closing stores 0.00 0.00 0.00
38. U.S. TRUSTEE FEES 20,500.00 0.00 0.00
39. PROFESSIONAL FEES 641,406.24 184,397.71 386,371.29
------------- ------------- -------------
40. TOTAL DISBURSEMENTS 1,096,767.75 421,333.59 859,007.72
============= ============= =============
41. END OF MONTH BALANCE 16,303,341.73 18,419,339.76 17,995,185.10
============= ============= =============
ITEMS 1 & 41: Beginning and Ending Cash balances reflect balances per bank statements.
ITEM 6: Consists of various miscellaneous corporate deposits.
ITEMS 9 - 40: Disbursements reflect wire and/or ACH transfers and checks written during the period
May 30, 1999 through July 3, 1999.
</TABLE>
<PAGE> 5
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-5
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE AGING
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
0 - 30 days old 0.00
31 - 60 days old 0.00
61 - 90 days old 0.00
91+ days old 2,164,661.33
TOTAL ACCOUNTS RECEIVABLE 2,164,661.33
AMOUNTS CONSIDERED UNCOLLECTIBLE (920,682.19)
ACCOUNTS RECEIVABLE (NET) 1,243,979.14
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
AGING OF POST PETITION TAXES AND PAYABLES
- -----------------------------------------------------------------------------------------------------------------------
0-30 31-60 61-90 91+
DAYS DAYS DAYS DAYS TOTAL
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE (A) 851,823.00 80,000.00 20,000.00 1,300,000.00 2,251,823.00
NOTE A: Sun's Accounts Payable system does not age the A/P; above aging represents estimate
based on review of the accounts payable detail.
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
STATUS OF POST PETITION TAXES
- -----------------------------------------------------------------------------------------------------------------------
BEGINNING AMOUNT WITHHELD AMOUNT ENDING TAX DELINQUENT
TAX LIABILITY* AND/OR ACCRUED PAID LIABILITY TAXES
-------------- --------------- ---- --------- -----
<S> <C> <C> <C> <C> <C>
FEDERAL
WITHHOLDING** 0.00 20,989.04 20,989.04 0.00
FICA-EMPLOYEE** 0.00 7,100.19 7,100.19 0.00
FICA-EMPLOYER** 0.00 7,100.21 7,100.21 0.00
UNEMPLOYMENT 0.00 1.98 1.98 0.00
INCOME 0.00 0.00 0.00 0.00
OTHER (ATTACH LIST) 0.00 0.00 0.00 0.00
---- --------- --------- ----
TOTAL FEDERAL TAXES 0.00 35,191.42 35,191.42 0.00 0.00
---- --------- --------- ---- ----
STATE AND LOCAL
---- --------- --------- ----
WITHHOLDING 0.00 7,242.83 7,242.83 0.00
SALES AND USE 0.00 0.00 0.00 0.00
EXCISE 0.00 0.00 0.00 0.00
MERCANTILE 0.00 0.00 0.00 0.00
UNEMPLOYMENT 0.00 110.85 110.85 0.00
REAL PROPERTY 0.00 0.00 0.00 0.00
PERSONAL PROPERTY 0.00 0.00 0.00 0.00
PENNSYLVANIA OCCUPATIONAL 0.00 0.00 0.00 0.00
NEW YORK DISABILITY 0.00 0.00 0.00 0.00
OTHER (ATTACH LIST) 0.00 0.00 0.00 0.00
---- --------- --------- ----
TOTAL STATE AND LOCAL 0.00 7,353.68 7,353.68 0.00 0.00
---- --------- --------- ---- ----
TOTAL TAXES 0.00 42,545.10 42,545.10 0.00 0.00
---- --------- --------- ---- ----
* The beginning tax liability should represent the liability from the prior month or, if this is the first operating
report, the amount should be zero.
** Attach photocopies of IRS Form 6123 or your FTD coupon and payment receipt to verify payment of deposit.
</TABLE>
<PAGE> 6
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-6
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
THE DEBTOR IN POSSESSION MUST COMPLETE THE RECONCILIATION BELOW FOR EACH
BANK ACCOUNT, INCLUDING ALL GENERAL, PAYROLL AND TAX ACCOUNTS, AS WELL AS
ALL SAVINGS AND INVESTMENT ACCOUNTS, MONEY MARKET ACCOUNTS, CERTIFICATES OF
DEPOSIT, GOVERNMENT OBLIGATIONS, ETC. ACCOUNTS WITH RESTRICTED FUNDS SHOULD
BE IDENTIFIED BY PLACING AN ASTERISK NEXT TO THE ACCOUNT NUMBER. ATTACH
ADDITIONAL SHEETS IF NECESSARY.
<TABLE>
<CAPTION>
BANK RECONCILIATION
ACCOUNT #1 ACCOUNT #2 ACCOUNT #3
---------- ---------- ----------
<S> <C> <C> <C> <C>
A. BANK: SEE NOTE BELOW
B. ACCOUNT NUMBER: TOTAL
C. PURPOSE (TYPE):
1. BALANCE PER BANK STATEMENT
2. ADD: TOTAL DEPOSITS NOT CREDITED
3. SUBTRACT: OUTSTANDING CHECKS
4. OTHER RECONCILING ITEMS (ATTACH LIST)
5. MONTH END BALANCE PER BOOKS
6. NUMBER OF LAST CHECK WRITTEN
NOTE: Bank Reconciliations for June 1999, copies of bank statements as of the end of June for all
bank accounts, and a summary of the activity in each account are included with this MOR.
See MOR-6 supporting schedules.
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT
BANK ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
-------------------------- -------- ---------- ----- -----
<S> <C> <C> <C> <C>
7. NatCity Investments - 509394078 12/31/98 Govt Money Market 1,228,151.32 1,228,151.32
8. NatCity Investments - 509394035 12/31/98 Govt Money Market 16,701,209.76 16,701,209.76
9.
10.
11. TOTAL INVESTMENTS 17,929,361.08 17,929,361.08
CASH
12. CURRENCY ON HAND - per the Company's Bank Statements 65,824.02
13. TOTAL CASH-END OF MONTH (Total of lines 5, 11, & 12) 17,995,185.10
</TABLE>
<PAGE> 7
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-7
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
PAYMENTS TO INSIDERS AND PROFESSIONALS
--------------------------------------
OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID
TO INSIDERS (AS DEFINED IN SECTION 101(31)(A)-(F) OF THE U.S. BANKRUPTCY CODE)
AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF
COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING
ALLOWANCE TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.
<TABLE>
<CAPTION>
INSIDERS
----------------------------------------------------------------------------------------- CUMULATIVE
TYPE OF AMOUNT UNPAID
NAME POSITION PAYMENT PAID BALANCE
---- -------- ------- ---- -------
<S> <C> <C> <C> <C>
1. BETH SAVAGE CFO, Treasurer & Secretary salary $18,461.55 $0.00
bonus $ 0.00
expenses $ 1,286.93
2. JIM ROMERO VP Operations salary $16,730.76 $0.00
vacation $ 5,576.92
expenses $ 0.00
3. JAMES MORAN President expenses $ 4,684.68
4. TOTAL PAYMENTS TO INSIDERS $46,740.84 $0.00
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS
- ----------------------------------------------------------------------------------------------------------------------------------
TYPE DATE OF COURT
OF ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID
NAME PROFESSIONAL PAYMENT APPROVED PAID TO DATE
---- ------------ ------- -------- ---- -------
<S> <C> <C> <C> <C> <C>
1. Kirkland & Ellis Attorney 09/16/98 0.00 0.00 402,044.85
2. Business Regeneration Services Accountant 09/16/98 143,028.87 143,028.87 856,775.37
3. KPMG Peat Marwick LLP Accountant 09/16/98 0.00 0.00 98,427.00
4. Otterbourg, Steindler, Houston & Attorney 09/16/98 40,324.34 40,324.34 470,771.96
5. Porter, Wright, Morris & Arthur Attorney 09/16/98 6,091.72 6,091.72 107,011.24
6. Young, Conaway, Stargatt & Attorney 09/16/98 0.00 0.00 190,944.05
7. Donlin, Recano & Company, Inc. Claims Consultant 09/16/98 0.00 0.00 345,890.91
8. Ernst & Young LLP Accountant 09/16/98 0.00 0.00 385,760.40
9. D.G. Hart Associates, Inc. Consultant 11/10/98 0.00 0.00 120,763.67
10. Pepper Hamilton LLP Attorney 11/05/98 0.00 0.00 18,051.19
11. Milbank, Tweed, Hadley & McCloy Attorney 11/23/98 196,926.36 196,926.36 933,735.51
12. TOTAL PAYMENTS TO PROFESSIONALS 386,371.29 386,371.29 3,930,176.15
</TABLE>
<TABLE>
<CAPTION>
ADEQUATE PROTECTION PAYMENTS
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
---------------- --- ----- ------------
<S> <C> <C> <C>
1. BankBoston Retail Finance, Inc. Term Loan Interest due the first day of 0.00 None
2. each month
3.
4.
5.
6. TOTAL 0.00
</TABLE>
<PAGE> 8
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-8
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
<TABLE>
<CAPTION>
QUESTIONNAIRE YES NO
------------- --- --
<S> <C> <C>
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS
THIS REPORTING PERIOD? X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION
ACCOUNT? X
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES? X
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD? X
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY? X
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? X
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? X
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? X
12. ARE ANY WAGE PAYMENTS PAST DUE? X
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED
EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.
ITEM #2 - In accordance with a first day motion approved by the
Bankruptcy Court, Sun Television's existing pre-petition
bank accounts are Debtor-in-Possession bank accounts.
<CAPTION>
INSURANCE YES NO
--------- --- --
<S> <C> <C>
1. ARE WORKERS COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
3. PLEASE ITEMIZE POLICIES BELOW. X
IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES
HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE
AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.
ITEM 2: Note that approximately $10,000 in General Liability insurance
premium related to several new stores opened during fiscal 1999 were NOT
billed to the Company until subsequent to the Petition Date and are
therefore included as a Pre-petition debt.
INSURANCE POLICIES
<CAPTION>
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
------ ------- -------------- -----------
<S> <C> <C> <C>
Commercial Property & Casualty C N A 10/1/98 through 9/30/99 - $287,100 paid 10/1/98
Directors & Officers Liability Genesis Insurance Co. 7/21/98 through 7/21/99 - $199,000 paid in full
7/27/98
Workers Compensation Various State Funds 11/19/98 through final store - $113,740 paid 11/13/98
closing date in various states (A)
NOTE A: Sun applied for state fund coverage in
Pennsylvania, Indiana, Virginia, New York and
Kentucky. No coverage was necessary for Tennessee
as final store closed in that state on November
8, 1998. Sun was required to apply for State Fund
coverage for WC due to the EBI Companies denying
coverage after the 30 day extension period. Sun
is still self-insured in Ohio. As of the end of
May, final audits had been completed for
Pennsylvania, Indiana, Virginia, New York and
Kentucky, to determine any required premium
adjustments and close the accounts.
</TABLE>
<PAGE> 9
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-9
ACCRUAL BASIS - UNAUDITED
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 3, 1999
PERSONNEL
<TABLE>
<CAPTION>
FULL TIME PART TIME TOTAL
--------- --------- -----
<S> <C> <C> <C>
1. Total number of employees at beginning of period 20 0 20
2. Number of employees hired during the period 0 0 0
3. Number of employees terminated or resigned during the period (8) 0 (8)
4. Total number of employees on payroll at end of period 12 0 12
CHANGE OF ADDRESS
If your mailing address has changed and you have not previously notified the United States Trustee of the change,
list your new address below:
DATE OF CHANGE: _______N/A______________
NEW ADDRESS: ___________________N/A________________________
</TABLE>
<PAGE> 10
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JUNE 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
SUMMARY OF BANK STATEMENT ACTIVITY
<PAGE> 11
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-4 SUPPORTING SCHEDULE
<TABLE>
<CAPTION>
BANK BANKBOSTON NATIONAL CITY NATIONAL CITY NATIONAL CITY NATIONAL CITY THE OHIO BANK
ACCOUNT NAME BRF, INC. FOR
PROCEEDS FROM WORKERS PROFESSIONAL STORE
SUN TV & APPLIANCES CONCENTRATION COMPENSATION PAYROLL FEES DEPOSITS
ACCOUNT NUMBER 804-81979 394035037 3941035053 394035045 394078205 7067480
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE 5/29/99 430.11 658,825.04 23,797.58 33,916.45 1,000.00 1,391.79
MISCELLANEOUS CORPORATE DEPOSITS 278,374.96
BENEFICIAL FINANCE RECEIPTS --
TRANSFERS FROM SMALL BANKS --
CREDIT CARD DEPOSITS, NET --
TRANSFERS TO/FROM BANKBOSTON A/C
898-28038 -- --
WIRE TSF TO SUN TV CONCENTRATION
ACCOUNT -- --
WIRE TSF TO VENDORS (72,000.00)
WIRE TSF TO NCB A/CS - P/R, W/C,
HEALTH INS, PROF FEES (127,613.95) 8,390.10 119,223.85
WIRE TSF FROM/TO SUN TV SEI
INVESTMENT FUND (100,000.00)
CHECKS PAID (624,660.80) (13,771.16) (17,032.76)
WIRES OUT - DIRECT DEP. & P/R TAX (103,791.76)
NSF CHECKS (279.87)
BANK/CREDIT CARD FEES -- (370.50) (5.06)
--------------------------------------------------------------------------------------
BALANCE 7/3/99 430.11 12,274.88 18,416.52 32,315.78 1,000.00 1,386.73
======================================================================================
Beginning of month balance - all
accounts 719,360.97
==========
End of month balance - all accounts 65,824.02
==========
</TABLE>
<PAGE> 12
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JUNE 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
DETAIL LISTING OF ACH AND WIRE TRANSFERS
<PAGE> 13
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS IN POSSESSION
CASE NO. 98-2107 AND 98-2109
FOR THE MONTH ENDING JULY 3, 1999
(COVERING THE PERIOD MAY 30, 1999 THROUGH JULY 3, 1999)
MOR-4 SUPPORTING SCHEDULE
SUMMARY OF ACH AND WIRE TRANSFERS DURING PERIOD
<TABLE>
<CAPTION>
Type Date Vendor Amount ACH/Wire
---- ---- ------ ------ --------
<S> <C> <C> <C> <C>
Equipment Lease 7/2/99 Ameritech Credit Corporation 72,000.00 Wire
-----------
Total Equipment Lease 72,000.00
-----------
Payroll 6/4/99 ADP 37,631.20 ACH
Payroll 6/17/99 ADP 47,969.77 ACH
Payroll 7/1/99 ADP 33,622.88 ACH
-----------
Total Payroll 119,223.85
-----------
Workers Comp 6/1/99 M&N Risk Management $ 5,247.05 ACH
Workers Comp 6/17/99 M&N Risk Management $ 3,143.05 ACH
-----------
Total Workers Compensation 8,390.10
-----------
TOTAL WIRE AND ACH TRANSFERS 199,613.95
===========
</TABLE>
<PAGE> 14
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JUNE 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
DETAIL LISTING OF CHECKS WRITTEN
<PAGE> 15
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
(DEBTORS-IN-POSSESSION)
CASE NO. 98-2107 AND 98-2109
MOR-4 SUPPORTING SCHEDULE
POST-PETITION CHECKS FOR THE PERIOD 5/30/99 THROUGH 7/3/99
(ASSOCIATE PAYROLL CHECKS ARE NOT INCLUDED)
<TABLE>
<CAPTION>
- ------------------------
CHECK DATE
- ------------------------
YEAR MON DAY CHECK# PAYEE TYPE AMOUNT
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
99 6 30 713680 TIMES PUBLISHING CO Advertising 4,432.51
- ---------------------------------------------------------------------------------------------------------------
Advertising 4,432.51
- ---------------------------------------------------------------------------------------------------------------
99 6 17 713652 OPEN TECHNOLOGY GROUP INC Consulting 4,851.00
99 6 21 713655 OPEN TECHNOLOGY GROUP INC Consulting 5,040.00
- ---------------------------------------------------------------------------------------------------------------
Consulting 9,891.00
- ---------------------------------------------------------------------------------------------------------------
99 6 3 713603 MILLER'S TOTAL CLEANING Contract Labor 211.00
99 6 3 713604 MILLER'S TOTAL CLEANING Contract Labor 223.00
99 6 10 713626 MILLER'S TOTAL CLEANING Contract Labor 423.00
99 6 16 713647 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 6 24 713665 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 7 1 713683 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 7 1 713687 SUZANNE HARRINGTON ENTERPRISES Contract Labor 1,058.80
- ---------------------------------------------------------------------------------------------------------------
Contract Labor 3,184.80
- ---------------------------------------------------------------------------------------------------------------
99 6 4 713612 BETH SAVAGE Employee Expense 547.75
99 6 30 713681 BETH SAVAGE Employee Expense 739.18
99 6 3 713607 JAMES MORAN Employee Expense 1,572.09
99 6 24 713668 JAMES MORAN Employee Expense 3,112.59
99 6 24 713666 PATTY BALL Employee Expense 81.24
99 6 4 713613 SANDY WEBB Employee Expense 25.32
- ---------------------------------------------------------------------------------------------------------------
Employee Expense 6,078.17
- ---------------------------------------------------------------------------------------------------------------
99 6 1 713599 AMERITECH CREDIT CORPORATION Equipment Rental 18,715.37
99 7 2 713689 AMERITECH CREDIT CORPORATION Equipment Rental 18,715.37
99 6 22 713663 KEHL CHEVY OLDS INC Equipment Rental 12,735.99
- ---------------------------------------------------------------------------------------------------------------
Equipment Rental 50,166.73
- ---------------------------------------------------------------------------------------------------------------
99 6 3 713609 PHEAA Garnishment 94.15
99 6 16 713648 PHEAA Garnishment 94.15
- ---------------------------------------------------------------------------------------------------------------
Garnishment 188.30
- ---------------------------------------------------------------------------------------------------------------
99 6 16 713646 ANTHEM BLUE CROSS BLUE SHIELD Insurance 1,272.16
99 7 1 713685 FORTIS INSURANCE COMPANY Insurance 143.12
99 7 2 713691 FORTIS INSURANCE COMPANY Insurance 209.15
- ---------------------------------------------------------------------------------------------------------------
Insurance 1,624.43
- ---------------------------------------------------------------------------------------------------------------
99 6 30 713679 S K ADVERTISING Legal Notices 16,648.82
- ---------------------------------------------------------------------------------------------------------------
Legal Notices 16,648.82
- ---------------------------------------------------------------------------------------------------------------
99 6 10 713631 QUIKPRO COURIER Miscellaneous 14.00
99 6 21 713654 QUIKPRO COURIER Miscellaneous 11.00
99 6 25 713671 QUIKPRO COURIER Miscellaneous 11.00
- ---------------------------------------------------------------------------------------------------------------
Miscellaneous 36.00
- ---------------------------------------------------------------------------------------------------------------
99 6 1 713598 AUTOMATIC DATA PROCESSING Payroll 328.46
99 6 8 713615 AUTOMATIC DATA PROCESSING Payroll 562.63
99 6 8 713623 AUTOMATIC DATA PROCESSING Payroll 251.80
99 6 16 713645 AUTOMATIC DATA PROCESSING Payroll 59.38
99 6 22 713661 AUTOMATIC DATA PROCESSING Payroll 415.82
99 6 30 713677 AUTOMATIC DATA PROCESSING Payroll 618.16
- ---------------------------------------------------------------------------------------------------------------
Payroll 2,236.25
- ---------------------------------------------------------------------------------------------------------------
99 6 16 713650 APPLE DIRECT MAIL SERVICES LTD Postage 561.00
- ---------------------------------------------------------------------------------------------------------------
Postage 561.00
- ---------------------------------------------------------------------------------------------------------------
99 6 10 713628 BTS,LLC Professional 27,616.50
99 6 22 713657 BTS,LLC Professional 115,412.37
99 6 1 713601 MILBANK,TWEED,HADLEY & MCCLOY Professional 155,438.86
99 6 24 713669 MILBANK,TWEED,HADLEY & MCCLOY Professional 41,487.50
99 6 10 713629 OTTERBOURG,STEINDLER,HOUSTON & Professional 29,965.47
99 6 14 713636 OTTERBOURG,STEINDLER,HOUSTON & Professional 10,358.87
99 6 14 713637 PORTER WRIGHT MORRIS & ARTHUR Professional 6,091.72
- ---------------------------------------------------------------------------------------------------------------
Professional 386,371.29
- ---------------------------------------------------------------------------------------------------------------
99 6 22 713658 BROOKLOR,LLC Rent 29,625.49
99 6 1 713600 DUKE REALTY LIMITED PRTNRSHP Rent 4,029.76
99 6 11 713634 PARK ASSOCIATES Rent 21,519.78
99 6 15 713640 STARK COMMONS, LTD. Rent 36,508.47
99 6 22 713659 WAL MART STORES INC Rent 15,261.75
- ---------------------------------------------------------------------------------------------------------------
Rent 106,945.25
- ---------------------------------------------------------------------------------------------------------------
99 6 8 713616 ENDLESS COMPUTER SUPPLY Supplies 90.89
99 6 25 713673 GORDON FLESCH CO INC Supplies 513.65
- ---------------------------------------------------------------------------------------------------------------
Supplies 604.54
- ---------------------------------------------------------------------------------------------------------------
99 6 4 713611 AMERITECH Utilities 41.07
99 6 15 713641 BENDERSON DEVELOPMENT Utilities 81.31
99 6 28 713675 COLUMBIA GAS OF OHIO-COLUMBUS Utilities 62,252.22
99 6 15 713643 JADE INC Utilities 799.80
99 6 30 713678 JADE INC Utilities 199.95
99 6 3 713608 MOUNTAINEER GAS Utilities 56.34
99 6 11 713633 THE ILLUMINATING COMPANY Utilities 3,708.96
99 6 8 713624 VIRGINIA POWER Utilities 116.52
- ---------------------------------------------------------------------------------------------------------------
Utilities 67,256.17
- ---------------------------------------------------------------------------------------------------------------
99 6 3 713606 VAC SERVICE CORP Warranty 82.00
- ---------------------------------------------------------------------------------------------------------------
Warranty 82.00
- ---------------------------------------------------------------------------------------------------------------
99 6 15 713639 THE PMA GROUP Workers' Comp 3,086.51
- ---------------------------------------------------------------------------------------------------------------
Workers' Comp 3,086.51
- ---------------------------------------------------------------------------------------------------------------
TOTAL POST-PETITION CHECKS $659,393.77
</TABLE>
<PAGE> 16
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JUNE 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-5
PAYROLL TAXES
<PAGE> 17
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
(DEBTORS-IN-POSSESSION)
CASE NO. 98-2107 AND 98-2109
MOR-5 SUPPORTING SCHEDULE
PAYROLL TAXES PAYMENT - SUPPORTING DOCUMENTATION
FOR THE MONTH ENDING JULY 3, 1999
Deposit Federal Employee Employer
Date Income Tax FICA Tax FICA Tax Totals
- -------- ---------- -------- -------- ------
08-Jun-99 $ 6,450.51 $2,326.56 $2,326.57 $11,103.64
22-Jun-99 $ 8,593.05 $3,062.28 $3,062.28 $14,717.61
07-Jul-99 $ 5,945.48 $1,711.35 $1,711.36 $ 9,368.19
--------- --------- --------- ----------
$20,989.04 $7,100.19 $7,100.21 $35,189.44
========== ========= ========= ==========
<PAGE> 18
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JUNE 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-6
BANK RECONCILIATIONS
<PAGE> 19
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-6 SUPPORTING SCHEDULE
JUNE BANK RECONCILIATIONS
<TABLE>
<CAPTION>
A. BANK: THE OHIO BANK BANKBOSTON NATIONAL CITY NATIONAL CITY NATIONAL CITY NATIONAL CITY
B. ACCOUNT NUMBER: 7067480 804-81979 394035037 3941035053 394078205 394035045
C. PURPOSE (TYPE): STORE DEPOSITS BBRF PROCEEDS CONCENTRATION WORKERS COMP PROF. FEES PAYROLL
<S> <C> <C> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT 1,386.73 430.11 12,274.88 18,416.52 1,000.00 32,315.78
2. ADD: TOTAL DEPOSITS NOT CREDITED -- -- -- 4,827.57 -- --
3. ADD: OUTSTANDING WIRE TRANSFERS -- -- -- -- -- --
4. SUBTRACT: OUTSTANDING CHECKS N/A N/A (188,720.31) (4,165.28) -- (24,795.96)
5. SUBTRACT: OUTSTANDING WIRE TRANSFERS -- -- -- -- -- --
6. OTHER RECONCILING ITEMS -- (430.11) 585.87 -- -- --
7. ADJUSTED BANK BALANCE 1,386.73 -- (175,859.56) 19,078.81 1,000.00 7,519.82
8. MONTH END BALANCE PER BOOKS 1,386.73 -- (171,567.97) 22,626.92 1,000.00 7,491.51
9. LESS: NSF CHECKS -- -- -- -- -- --
10. LESS: BANK/CREDIT CARD FEES -- -- -- -- -- --
11. ADD/(LESS): DEPOSIT DIFFERENCES -- -- -- -- -- --
12. OTHER RECONCILING ITEMS (ATTACH LIST) -- -- (4,291.59) (3,548.11) -- 28.31
13. ADJUSTED BALANCE PER BOOKS 1,386.73 -- (175,859.56) 19,078.81 1,000.00 7,519.82
14. NUMBER OF LAST CHECK WRITTEN N/A N/A #713691 #7517 N/A #
</TABLE>
<PAGE> 20
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-6 SUPPORTING SCHEDULE
JUNE BANK RECONCILIATIONS
OTHER RECONCILING ITEMS
<TABLE>
<CAPTION>
OTHER RECONCILING ITEMS:
<S> <C>
BANKBOSTON
804-81979
BBRF PROCEEDS
Other reconciling items - Bank
---------
Credit card adjustments (430.11)
=========
NATIONAL CITY
394035037
CONCENTRATION
Other reconciling items - Bank
---------
Checks shown as outstanding, should be void 585.87
=========
Other reconciling items - Book
Check void on G/L, paid by bank
(4,438.84)
Check stopped on bank, not void on G/L 147.25
---------
(4,291.59)
=========
NATIONAL CITY
3941035053
WORKERS COMP
Checks not booked
(3,548.11)
---------
(3,548.11)
=========
NATIONAL CITY
394035045
PAYROLL
Miscellaneous reconciling items 28.31
---------
28.31
=========
</TABLE>
