<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 22, 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 3. BANKRUPTCY OR RECEIVERSHIP.
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 (the "Court"). On December 22,
1999, the Court confirmed pursuant to an order (the "Order") the First Amended
Joint Plan of Liquidation of Sun TV Under Chapter 11 of Bankruptcy Code (the
"Plan"). The Order and Plan (which is an exhibit to the Order) are attached
hereto as Exhibit 99.1 and are incorporated herein by reference. (Capitalized
terms used herein and not otherwise defined herein shall have the meanings
ascribed to them in the Order and/or the Plan.)
The Plan provides for, among other things:
(i) the substantive consolidation of the Estates of the Sun TV entities
for all purposes related to the Plan, including without limitation, for purposes
of confirmation, Distributions, and Claim determinations;
(ii) the rejection of certain leases and contracts not previously
rejected;
(iii) the funding of the Plan by Available Cash on the Effective Date
and from the liquidation of Sun TV's remaining assets, prosecution of Causes of
Action and any release of funds from the Disputed Claims Reserve;
(iv) the continued corporate existence of Sun TV, following
confirmation and consummation as described in Section V of the Plan, for the
purposes of winding up its affairs, liquidating remaining assets of the Estates,
enforcing Causes of Action and other claims, reconciling Claims and resolving
Disputed Claims, administering the Plan, and taking other appropriate action;
(v) the management of Sun TV from and after the Confirmation Date and
for the process of determining the succession of certain management of Sun TV;
(vi) the specific procedures to be undertaken under which Sun TV will
make Distributions to holders of Allowed Claims.
(vii) the dissolution of Sun TV and the cancellation of Equity
Interests upon the distribution of all assets of the Estates and the filing of a
certification to that effect with the Bankruptcy Court.
Prior to the filing of the Plan, there were 17,439,202 shares of common
stock of Sun TV issued and outstanding. There are no shares of stock reserved
for future issuance in respect of claims and interests filed and allowed under
the Plan.
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<PAGE> 3
As of December 31, 1999, the latest date that such information is
available, Sun TV had assets totaling $19,324,000 and liabilities totaling
$58,403,000.
ITEM 5. OTHER EVENTS.
Sun TV must file a Monthly Operating Report ("MOR") with the Office of
the United States Trustee. The MORs for July 1999 through October 1999 are
attached hereto as Exhibits 99.2 through 99.5 and are incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
<TABLE>
<CAPTION>
Exhibit No. Description
<S> <C>
99.1 Order of the United States Bankruptcy Court
for the District of Delaware, dated
December 22, 1999, confirming the First
Amended Joint Plan of Liquidation of Sun TV
Under Chapter 11 of Bankruptcy Code.
99.2 Monthly Operating Report for July 1999.
99.3 Monthly Operating Report for August 1999.
99.4 Monthly Operating Report for September 1999.
99.5 Monthly Operating Report for October 1999.
</TABLE>
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: January 19, 2000 By: /s/ James Moran
--------------------------
James Moran, President
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EXHIBIT INDEX
SUN TELEVISION AND APPLIANCES, INC.
FORM 8-K
Exhibit No. Description
99.1 Order of the United States Bankruptcy Court
for the District of Delaware, dated
December 22, 1999, confirming the First
Amended Joint Plan of Liquidation of Sun TV
Under Chapter 11 of Bankruptcy Code.
99.2 Monthly Operating Report for July 1999.
99.3 Monthly Operating Report for August 1999.
99.4 Monthly Operating Report for September 1999.
99.5 Monthly Operating Report for October 1999.
- 4 -
<PAGE> 1
Exhibit 99
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
- ----------------------------------------------x
In re: :
: Chapter 11
SUN TV AND APPLIANCES, INC. :
AND SUN TELEVISION AND : Case No. 98-2107 (MFW)
APPLIANCES, INC., :
: Jointly Administered
Debtors. :
:
- ----------------------------------------------x
FINDINGS OF FACT AND CONCLUSIONS OF LAW RELATING TO CONFIRMATION OF, AND ORDER
UNDER 11 U.S.C. SECTION 1129(a) AND (b) CONFIRMING, FIRST AMENDED JOINT PLAN
OF LIQUIDATION OF SUN TV UNDER CHAPTER 11 OF BANKRUPTCY CODE
------------------------------------------------------------
<PAGE> 2
TABLE OF CONTENTS(1)
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
RECITALS .......................................................................1
FINDINGS OF FACT AND CONCLUSIONS OF LAW.........................................3
1. CORE PROCEEDING (28 U.S.C. SECTION 157(B)(2))...............................3
2. TRANSMITTAL AND MAILING OF MATERIALS; NOTICE................................3
3. PLAN COMPLIANCE WITH BANKRUPTCY CODE (11 U.S.C. SECTION 1129(A)(1)).........3
(A) PROPER CLASSIFICATION (11 U.S.C. SECTIONS 1122, 1123(A)(1)).............3
(B) SPECIFIED TREATMENT OF UNIMPAIRED CLASSES (11 U.S.C. SECTION 1123(A)(2))4
(C) SPECIFIED TREATMENT OF IMPAIRED CLASSES (11 U.S.C. SECTION 1123(A)(3))..4
(D) NO DISCRIMINATION (11 U.S.C. SECTION 1123(A)(4))........................4
(E) IMPLEMENTATION OF THE PLAN (11 U.S.C. SECTION 1123(A)(5))...............4
(F) NONVOTING SECURITIES (11 U.S.C. SECTION 1123(A)(6)).....................5
(G) ENGAGEMENT OF DEBTOR OFFICERS (11 U.S.C. SECTION 1123(A)(7))............5
4. SUN TV'S COMPLIANCE WITH THE BANKRUPTCY CODE
(11 U.S.C. SECTION 1129(A)(2))..............................................5
5. PLAN PROPOSED IN GOOD FAITH (11 U.S.C. SECTION 1129(A)(3))..................6
6. PAYMENTS FOR SERVICES OR COSTS AND EXPENSES
(11 U.S.C. SECTION 1129(A)(4))..............................................6
7. DIRECTORS, OFFICERS AND TRUSTEES (11 U.S.C. SECTION 1129(A)(5)).............6
8. NO RATE CHANGES (11 U.S.C. SECTION 1129(A)(6))..............................6
9. BEST INTERESTS OF CREDITORS TEST (11 U.S.C. SECTION 1129(A)(7)).............7
10. ACCEPTANCE BY CERTAIN CLASSES (11 U.S.C. SECTION 1129(A)(8))................7
11. TREATMENT OF ADMINISTRATIVE AND TAX CLAIMS
(11 U.S.C. SECTION 1129(A)(9))..............................................7
12. ACCEPTANCE BY IMPAIRED CLASSES (11 U.S.C. SECTION 1129(A)(10))..............7
</TABLE>
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(1) All capitalized terms not defined in this Order have the meanings ascribed
to them in the Plan.
i
<PAGE> 3
13. FEASIBILITY (11 U.S.C. SECTION 1129(A)(11))...............................7
14. PAYMENT OF FEES (11 U.S.C. SECTION 1129(A)(12))...........................7
15. CONTINUATION OF RETIREE BENEFITS (11 U.S.C. SECTION 1129(A)(13))..........7
16. FAIR AND EQUITABLE; NO UNFAIR DISCRIMINATION (11 U.S.C. SECTION 1129(B))..8
17. PRINCIPAL PURPOSE OF PLAN (11 U.S.C. SECTION 1129(D)).....................8
18. SUBSTANTIVE CONSOLIDATION.................................................8
19. OBJECTIONS................................................................8
20. GOOD FAITH SOLICITATION (11 U.S.C. SECTION 1125(E)).......................8
21. RELEASE, INJUNCTION AND EXCULPATION.......................................9
22. TRANSFER OF PROPERTY......................................................9
23. CONDITIONS TO CONFIRMATION................................................9
24. JURISDICTION..............................................................9
25. 9019 SETTLEMENT...........................................................9
DECREES .....................................................................10
26. CONFIRMATION.............................................................10
27. OBJECTIONS...............................................................10
28. PROVISIONS OF PLAN AND ORDER NONSEVERABLE AND MUTUALLY DEPENDENT.........10
29. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.................................10
30. RELEASES, EXCULPATION, INJUNCTION, AND PRESERVATION OF
CAUSES OF ACTION.........................................................11
(A) RELEASE OF THE DEBTORS...............................................11
(B) RELEASES OF OFFICERS, DIRECTORS, EMPLOYEES, AND PROFESSIONALS........11
(C) INJUNCTION...........................................................11
(D) SATISFACTION OF CLAIMS AND EQUITY INTERESTS..........................11
(E) EXCULPATION..........................................................12
(F) PRESERVATION OF CAUSES OF ACTION; DEFENSES...........................12
31. NO RECOURSE..............................................................12
32. SUBSTANTIVE CONSOLIDATION................................................12
ii
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33. APPROVAL OF OFFICERS, DIRECTORS, CONTINUING EXISTENCE....................13
34. EFFECTUATING DOCUMENTS AND FURTHER TRANSACTIONS..........................14
35. RESOLUTION OF DISPUTED CLAIMS............................................14
36. NO DISTRIBUTION PENDING ALLOWANCE........................................15
37. LATE CLAIMS..............................................................15
38. GENERAL AUTHORIZATIONS...................................................15
39. CANCELLATION OF EQUITY INTERESTS.........................................15
40. EXEMPTION FROM TRANSFER TAXES............................................15
41. RULE 9019 SETTLEMENT.....................................................15
42. RATIFICATION.............................................................15
43. CONFLICTS................................................................16
44. DISSOLUTION OF CREDITORS' COMMITTEE......................................16
45. PLAN AND CONFIRMATION ORDER BINDING......................................16
46. SEPARATE ORDER FOR EACH SUN TV ENTITY....................................16
47. PLAN PROVISIONS TO BE GIVEN EFFECT.......................................17
48. PLAN CLASSIFICATION CONTROLLING..........................................17
49. THE RECORD...............................................................17
50. FINAL FEE APPLICATION FOR PROFESSIONAL FEES..............................17
51. POST-CONFIRMATION DATE FEES AND EXPENSES OF PROFESSIONALS................17
52. NO INTEREST..............................................................18
53. RETENTION OF JURISDICTION................................................18
54. NOTICE OF EFFECTIVE DATE.................................................18
55. SUFFICIENCY OF NOTICE OF EFFECTIVE DATE..................................18
56. RETURNED MAIL............................................................18
57. AUTHORIZATION TO CLOSE...................................................19
iii
<PAGE> 5
RECITALS
--------
WHEREAS, Sun TV and Appliances, Inc. and Sun Television and
Appliances, Inc., debtors and debtors in possession in these chapter 11 cases
(collectively, "Sun TV"), filed with this Court the first amended joint plan of
liquidation of Sun TV under chapter 11 of the Bankruptcy Code(2) dated November
15, 1999 (as amended, the "Plan"), the disclosure statement, pursuant to section
1125 of the Bankruptcy Code with respect to the Plan, dated November 15, 1999
(as amended, the "Long-Form Disclosure Statement"), and the summary disclosure
statement, pursuant to section 1125 of Bankruptcy Code with respect to the Plan,
dated November 15, 1999 (as amended, the "Summary Disclosure Statement," and
together with the Long-Form Disclosure Statement, the "Disclosure Statements");
and
WHEREAS, pursuant to an order dated November 16, 1999 (the
"Disclosure Statement Approval Order"), this Court, among other things, approved
the Disclosure Statements in all respects, fixed December 22, 1999 as the date
for the hearing to consider confirmation of the Plan, and established certain
procedures for soliciting and tabulating votes with respect to the Plan; and
WHEREAS, on December 21, 1999, Sun TV filed the Vote
Certification Package in connection with the Plan (the "Vote Certification
Package"), showing that, in accordance with the applicable Bankruptcy Rules and
paragraphs 17 through 19 of the Disclosure Statement Approval Order, the Notice
of Confirmation Hearing, the Long-Form Disclosure Statement (and the Plan
attached thereto) or the Summary Disclosure Statement (and the Plan attached
thereto), as appropriate, the Disclosure Statement Approval Order and, to the
extent required by the Disclosure Statement Approval Order, a Ballot, were
mailed and transmitted by United States mail first-class postage prepaid no
later than November 19, 1999 to, as set forth in the exhibits to the Vote
Certification Package, (i) claimants holding Priority Tax Claims, (ii) counsel
to BankBoston Retail Finance, Inc., Riemer & Braunstein, 3 Center Plaza, Boston,
Massachusetts 02018 (Attn: David S. Berman, Esq.) and Richards, Layton & Finger,
P.O. Box 55, Wilmington, Delaware 19899 (Attn: Mark D. Collins, Esq.); (iii)
claimants holding Claims in Classes designated as unimpaired under the Plan,
(iv) claimants holding Claims in Classes designated as impaired and entitled to
vote on the Plan (A) who have filed timely proofs of claim (or untimely proofs
of claim which have been Allowed as timely by order of this Court under
applicable law on or before the Record Date) that have not been disallowed by an
order of this Court entered on or
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(2) Capitalized terms not otherwise defined herein shall have the meanings
ascribed to such terms in the Plan.
<PAGE> 6
before the Record Date or (B) whose Claims are scheduled in the Schedules filed
on or before the Record Date (other than those scheduled as unliquidated,
contingent or disputed); (v) holders of Equity Interests designated as impaired
under the Plan and who will receive no distributions under the Plan; and (vii)
entities that requested notices under Bankruptcy Rule 2002; and
WHEREAS, Sun TV filed the affidavits of Traci Hanson of The
Wall Street Journal, sworn to on November 23, 1999, and William Goddard of The
Columbus Dispatch, sworn to on December 6, 1999 (each, a "Publication
Affidavit") setting forth the time and manner of the publication of the notices
approved by this Court in paragraph 21 of the Disclosure Statement Approval
Order for publication in (a) The Wall Street Journal (national edition) and (b)
The Columbus Dispatch, and showing that such notices were published in
accordance with paragraph 21 of the Disclosure Statement Approval Order; and
WHEREAS, Sun TV filed the affidavit of Carole G. Donlin, sworn
to on December 20, 1999, attesting to the results of voting on the Plan (the
"Voting Results Reports"); and
WHEREAS, Sun TV filed the affidavit of James T. Moran,
President of Sun TV, sworn to on December 20, 1999 (the "Moran Affidavit")
setting forth certain matters supporting confirmation of the Plan; and
WHEREAS, Sun TV proffered or elicited the testimony of James
T. Moran, President of Sun TV, in support of confirmation of the Plan; and
WHEREAS, two (2) objections to confirmation were filed by the
following entities: (a) the United States of America, on behalf of the Internal
Revenue Service and (b) Duvin, Cahn & Hutton; and
WHEREAS, on December 17, 1999, this Court approved a
stipulation and consent order, allowing for voting purposes in the amount of
$62,051.15 a certain Claim of European American Bank ("EAB") and approved EAB's
vote in such amount to accept the Plan; and
WHEREAS, pursuant to Section 1128(a) of the Bankruptcy Code,
this Court held a hearing commencing on December 22, 1999 (the "Confirmation
Hearing"), to consider confirmation of the Plan;
NOW, THEREFORE, based upon this Court's review of the
affidavits and reports previously filed with this Court, including the Vote
Certification Package, the Publication Affidavits, the Voting Results Reports,
the Moran Affidavit; and upon all of the evidence proffered or elicited at,
memoranda and objections filed in support of, and arguments of counsel made at
the Confirmation Hearing and at the hearing
2
<PAGE> 7
commenced on December 22, 1999 to consider, INTER ALIA, issues pertaining to
substantive consolidation and other intercompany and intercreditor issues
regarding Sun TV; and after due deliberation; and upon the entire record of this
Chapter 11 Case;
FINDINGS OF FACT AND CONCLUSIONS OF LAW
---------------------------------------
IT IS HEREBY FOUND AND DETERMINED THAT(3)
1. CORE PROCEEDING (28 U.S.C. SECTION 157(b)(2)). This is a core
proceeding under 28 U.S.C. Section 157(b)(2).
2. TRANSMITTAL AND MAILING OF MATERIALS; NOTICE. The Disclosure
Statements, the Plan, the Ballots, the Notice of Confirmation Hearing, and the
Disclosure Statement Approval Order were transmitted and served in compliance
with the Disclosure Statement Approval Order and the Bankruptcy Rules, and such
transmittal and service was adequate and sufficient. Adequate and sufficient
notice of the Confirmation Hearing and other bar dates and hearings described in
the Disclosure Statement Approval Order was given in compliance with the
Bankruptcy Rules and the Disclosure Statement Approval Order, and no further
notice is required. The solicitation of votes was made in good faith and in
compliance with the applicable provisions of the Bankruptcy Code and Bankruptcy
Rules and all other rules, laws and regulations.
3. PLAN COMPLIANCE WITH BANKRUPTCY CODE (11 U.S.C. SECTION 1129(a)(1)).
Section III of the Plan adequately and properly identifies and classifies all
Claims and Equity Interests. The Plan complies with the applicable provisions of
the Bankruptcy Code, thereby satisfying Section 1129(a)(1) of the Bankruptcy
Code and, as required by Bankruptcy Rule 3016(a), is dated and specifically
identifies Sun TV as the proponent of the Plan.
(a) PROPER CLASSIFICATION (11 U.S.C. SECTIONS 1122, 1123(a)
(1)). Section III of the Plan adequately and properly identifies and
classifies all Claims and Equity Interests. The Plan designates four
(4) Classes of Claims and two (2) Classes of Equity Interests. The
Claims or Equity Interests placed in each Class are substantially
similar to other Claims or Equity Interests, as the case may be, in
each such Class, and such classification is therefore consistent with
Section 1122 of the Bankruptcy Code. Valid legal reasons exist for the
various Classes of Claims and Equity Interests created under the Plan,
and such classification
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(3) Findings of fact shall be construed as conclusions of law and conclusions of
law shall be construed as findings of fact as and when appropriate.
3
<PAGE> 8
does not unfairly discriminate among holders of Claims or Equity
Interests. Thus, the Plan satisfies Section 1123(a)(1) of the
Bankruptcy Code.
(b) SPECIFIED TREATMENT OF UNIMPAIRED CLASSES (11 U.S.C.
SECTION 1123(a)(2)). The Plan specifies that Classes 1, 2 and 4 are not
impaired under the Plan, thereby satisfying Section 1123(a)(2) of the
Bankruptcy Code.
(c) SPECIFIED TREATMENT OF IMPAIRED CLASSES (11 U.S.C. SECTION
1123(a)(3)). The Plan specifies the Classes of Claims and Equity
Interests that are impaired and the treatment of such impaired Classes
(Classes 3, 5, and 6) in Sections 3.2 and 4.1 of the Plan, thereby
satisfying Section 1123(a)(3) of the Bankruptcy Code.
(d) NO DISCRIMINATION (11 U.S.C. SECTION 1123(a)(4)). Except
as described herein, the Plan provides for the same treatment for each
Claim or Equity Interest in each respective Class unless the holder of
a particular Class or Equity Interest has agreed to a less favorable
treatment of such Claim or Equity Interest, thereby satisfying Section
1123(a)(4) of the Bankruptcy Code.
(e) IMPLEMENTATION OF THE PLAN (11 U.S.C. SECTION 1123(a)(5)).
Section V of the Plan provides adequate and proper means for
implementation of the Plan, thereby satisfying Section 1123(a)(5) of
the Bankruptcy Code. Among other things:
(i) The Plan provides for the substantive
consolidation of the Estates of the Sun TV entities for all
purposes related to the Plan, including, without limitation,
for purposes of confirmation, Distributions, and Claim
determinations.
(ii) The Plan provides for the rejection of certain
leases and contracts not previously rejected.
(iii) The Plan provides for the funding of the Plan
by Available Cash on the Effective Date and from the
liquidation of Sun TV's remaining assets, prosecution of
Causes of Action and any release of funds from the Disputed
Claims Reserve.
(iv) The Plan provides for the continued corporate
existence of Sun TV, following confirmation and consummation
as described in Section V of the Plan, for the purposes of
winding up its affairs, liquidating remaining assets of the
Estates, enforcing Causes of Action and other claims,
reconciling Claims and resolving Disputed Claims,
administering the Plan, and taking other appropriate action.
4
<PAGE> 9
(v) The Plan provides for the management of Sun TV
from and after the Confirmation Date and for the process of
determining the succession of certain management of Sun TV.
(vi) The Plan specifies the procedures to be
undertaken under which Sun TV will make Distributions to
holders of Allowed Claims.
(vii) The Plan provides for the dissolution of Sun TV
and the cancellation of Equity Interests upon the distribution
of all assets of the Estates and the filing of a certification
to that effect with the Bankruptcy Court.
(f) NONVOTING SECURITIES (11 U.S.C. SECTION 1123(a)(6)). The
Plan complies with Section 1123(a)(6) of the Bankruptcy Code.
(g) ENGAGEMENT OF DEBTOR OFFICERS AND DIRECTORS (11 U.S. C.
SECTION 1123(a)(7)). The provisions of the Plan, regarding the manner
of selection of officers and directors of Sun TV on and after the
Confirmation Date and the Effective Date are consistent with the
interests of creditors and equity security holders and with public
policy, thereby satisfying Section 1123(a)(7) of the Bankruptcy Code.
Section 5.1(b) of the Plan further provides that from and after the
Effective Date, James Moran shall be appointed the sole director and
president of Sun TV and shall serve in such capacities on the terms set
forth in Section 5.5 of the Plan through the earlier of the date Sun TV
is dissolved in accordance with Section 5.1(c) of the Plan and the date
James Moran resigns, is terminated for cause or is unable to serve.
Section 5.2(b) of the Plan contains appropriate provisions for the
selection of a successor as its officer and director in the event of
the resignation, termination, or other inability to serve of such
officer and director.
4. SUN TV'S COMPLIANCE WITH THE BANKRUPTCY CODE (11 U.S.C.
SECTION 1129(a)(2)). Sun TV has complied with the applicable provisions of the
Bankruptcy Code, thereby satisfying Section 1129(a)(2) of the Bankruptcy Code.
(a) The entities comprising Sun TV are corporations organized
under the laws of the States of Delaware or Ohio, as the case may be,
and are proper debtors under Section 109 of the Bankruptcy Code.
(b) On September 16, 1998, Sun TV filed voluntary chapter 11
petitions pursuant to Section 301 of the Bankruptcy Code.
(c) This Court has jurisdiction over Sun TV's Chapter 11 Case
pursuant to 28 U.S.C. Section 1334.
5
<PAGE> 10
(d) Venue of these cases is proper in this district pursuant
to 28 U.S.C. Section 1408.
(e) The Sun TV entities are proper proponents of the Plan
pursuant to Section 1121(a) of the Bankruptcy Code.
(f) Sun TV, as proponents of the Plan, complied with the
applicable provisions of the Bankruptcy Code, the Bankruptcy Rules and
the Disclosure Statement Approval Order in transmitting the Plan,
Disclosure Statement, Ballots and related documents and notices and in
soliciting and tabulating votes on the Plan.
5. PLAN PROPOSED IN GOOD FAITH (11 U.S.C. SECTION 1129(a)(3)).
Sun TV has proposed the Plan in good faith and not by any means forbidden by
law, thereby satisfying Section 1129(a)(3) of the Bankruptcy Code. No objection
has been interposed on the grounds of lack of good faith, and in accordance with
Bankruptcy Rule 3020, the Court finds that Sun TV proposed the Plan in good
faith and not by any means forbidden by law, without the need for receiving
evidence on such issues.
6. PAYMENTS FOR SERVICES OR COSTS AND EXPENSES (11 U.S.C.
SECTION 1129(a)(4)). Any payment made or to be made by Sun TV for services or
for costs and expenses in or in connection with the Chapter 11 Case, or in
connection with the Plan and incident to the Chapter 11 Case, has been approved
by, or is subject to the approval of, this Court as reasonable, thereby
satisfying Section 1129(a)(4) of the Bankruptcy Code.
7. DIRECTORS, OFFICERS AND TRUSTEES (11 U.S.C. SECTION
1129(a)(5)). Sun TV has complied with Section 1129(a)(5) of the Bankruptcy Code.
Specifically:
(a) To the extent known at this time, Sun TV has disclosed the
identity and affiliations of any individual proposed to serve, after
confirmation of the Plan, as a director, officer or voting trustee of
the Sun TV entities, each of which is an affiliate of the other entity
and each of which is participating jointly in the Plan, or any
successor to any of the Sun TV entities under the Plan, and the
appointment to, or continuance in, such office of such individual is
consistent with the interests of creditors and equity security holders
and with public policy.
(b) To the extent known at this time, Sun TV has disclosed the
identity of any insider that will be employed or retained by Sun TV and
such person's compensation, to the extent known.
8. NO RATE CHANGES (11 U.S.C. SECTION 1129(a)(6)). No
governmental regulatory commission has jurisdiction over the rates charged by
Sun TV. Thus, the Plan does not provide for the change in any rates which
require regulatory approval,
6
<PAGE> 11
thereby satisfying Section 1129(a)(6) of the Bankruptcy Code.
9. BEST INTERESTS OF CREDITORS TEST (11 U.S.C. SECTION
1129(a)(7)). The Plan satisfies Section 1129(a)(7) of the Bankruptcy Code. Each
holder of a Claim or Equity Interest in each impaired Class either has accepted
the Plan or will receive or retain under the Plan on account of such Claim or
Equity Interest property of a value, as of the Effective Date, that is not less
than the amount that such holder would receive or retain if Sun TV were
liquidated under Chapter 7 of the Bankruptcy Code on such date. No Class has
made an election under Section 1111(b)(2) of the Bankruptcy Code.
10. ACCEPTANCE BY CERTAIN CLASSES (11 U.S.C. SECTION
1129(a)(8)). Except as set forth in paragraph 16 below, each Class of Claims
entitled to vote has accepted the Plan or is not impaired under the Plan. Since
not all impaired Classes of Equity Interests have accepted the Plan, the
requirements of Section 1129(a)(8) have not been met, thus requiring resort to
Section 1129(b) of the Bankruptcy Code.
11. TREATMENT OF ADMINISTRATIVE AND TAX CLAIMS (11 U.S.C.
SECTION 1129(a)(9)). The treatment of Administrative Expense Claims and Priority
Non-Tax Claims under Sections 2.1 and 3.2(a) of the Plan satisfies the
requirements of Section 1129(a)(9)(A) and (B) of the Bankruptcy Code, and the
treatment of Priority Tax Claims under Section 2.2 of the Plan satisfies the
requirements of Section 1129(a)(9)(C) of the Bankruptcy Code.
12. ACCEPTANCE BY IMPAIRED CLASSES (11 U.S.C. SECTION
1129(a)(10)). At least one Class of Claims that is impaired under the Plan has
accepted the Plan, determined without including any acceptance of the Plan by
any insider of Sun TV holding a Claim in such Class, thereby satisfying Section
1129(a)(10) of the Bankruptcy Code.
13. FEASIBILITY (11 U.S.C. SECTION 1129(a)(11)). As the Plan
expressly provides for the Liquidation of the Debtors, confirmation of the Plan
is not likely to be followed by the need for further financial reorganization of
Sun TV or any successor to either Sun TV entity, thereby satisfying Section
1129(a)(11) of the Bankruptcy Code.
14. PAYMENT OF FEES (11 U.S.C. SECTION 1129(a)(12)). All fees
payable under 28 U.S.C. Section 1930, as determined by this Court at the
Confirmation Hearing, have been paid or will be paid as Administrative Expense
Claims on the Effective Date pursuant to Section 14.8 of the Plan, thereby
satisfying Section 1129(a)(12) of the Bankruptcy Code. Any statutory fees
accruing after the Confirmation Date shall constitute Administrative Expense
Claims and be paid in accordance with Section 2.1 of the Plan.
15. CONTINUATION OF RETIREE BENEFITS (11 U.S.C. SECTION
1129(a)(13)). As Sun TV is not obligated to provide any retiree benefits (as
such term is defined in Section 1114 of the Bankruptcy Code), no such benefits
are required to be continued
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<PAGE> 12
under the Plan, and the Plan satisfies Section 1124(a)(13) of the Bankruptcy
Code.
16. FAIR AND EQUITABLE; NO UNFAIR DISCRIMINATION (11 U.S.C.
SECTION 1129(b)). Classes 5 and 6 (the "Rejecting Classes") are impaired Classes
of Equity Interests which are deemed to have rejected the Plan pursuant to
Section 1126(g) of the Bankruptcy Code. These are the only Classes which have
not accepted, or which have been deemed not to have accepted, the Plan. Pursuant
to Section 1129(b) of the Bankruptcy Code, this Court finds that the Plan does
not discriminate unfairly, and is fair and equitable, with respect to each of
the Rejecting Classes. Specifically, (a) with respect to each of the Rejecting
Classes, the holder of any Equity Interest that is junior to the Equity Interest
within such Rejecting Class will not receive or retain under the Plan on account
of such junior interest any property. Thus, the Plan satisfies Section 1129(b)
as to each of the Rejecting Classes.
17. PRINCIPAL PURPOSE OF PLAN (11 U.S.C. SECTION 1129(d)). The
principal purpose of the Plan is not the avoidance of taxes or the avoidance of
the application of Section 5 of the Securities Act of 1933 (15 U.S.C. Section
77e), and no governmental unit has requested that this Court not confirm the
Plan for this reason. Therefore, the Plan satisfies the requirements under
Section 1129(d) of the Bankruptcy Code.
18. SUBSTANTIVE CONSOLIDATION. Pursuant to the record
established at the Confirmation Hearing, the substantive consolidation of the
Sun TV entities to the extent and in accordance with Section IX of the Plan is
appropriate. The Substantive Consolidation of the members of Sun TV is warranted
because, among other things, (a) Sun TV conducted its business on a consolidated
basis, (b) the vendors of Sun TV relied on the credit of Sun TV as a whole, not
on the credit of either of the separate entities, (c) Sun TV conducted its
business through a centralized cash management system, and inter-stores
transfers of merchandise were not recorded as intercompany transfers, and (d)
Sun TV conducted business, and the business community treated the group, as one
consolidated business entity, even though the members of Sun TV were maintained
as distinct legal entities. In addition, no creditor, equity security holders or
other parties-in-interest has interposed any objection to the substantive
consolidation of the Sun TV entities.
19. OBJECTIONS. All objections to confirmation filed with this
Court have been withdrawn or settled or overruled.
20. GOOD FAITH SOLICITATION (11 U.S.C. SECTION 1125(e)). Sun
TV, and its agents, accountants, business consultants, representatives,
attorneys and advisors, through their participation in the negotiation and
preparation of the Plan and the Disclosure Statements and their efforts to
confirm the Plan, have solicited acceptances and rejections of the Plan in good
faith and participated in this Chapter 11 Case in compliance with the applicable
provisions of the Bankruptcy Code.
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<PAGE> 13
21. RELEASE, INJUNCTION AND EXCULPATION. Each of the release,
injunction, and exculpation provisions contained in Sections XI, XII and XIV of
the Plan is necessary and appropriate under the circumstances and each:
(a) falls within the jurisdiction of this Court under 28
U.S.C. Sections 1334(a), (b) and (d);
(b) is an essential means of implementing the Plan pursuant to
Section 1123(a)(5) of the Bankruptcy Code;
(c) is important to the overall objectives of the Plan to
finally resolve, except to the extent otherwise provided in the Plan,
all claims among or against the parties-in-interest in the Chapter 11
Case with respect to the Sun TV entities, their organization,
capitalization, operation and liquidation; and
(d) is consistent with Sections 105, 1123, 1129 and other
applicable provisions of the Bankruptcy Code.
22. TRANSFER OF PROPERTY. The transfers of property by the
members of Sun TV to holders of Claims or Equity Interests under the Plan are
for good consideration and value and are in the ordinary course of Sun TV's
business and (i) do not and shall not constitute avoidable transfers under the
Bankruptcy Code or under applicable nonbankruptcy law, and (ii) do not and shall
not subject Sun TV to any liability by reason of such transfer under the
Bankruptcy Code or under applicable nonbankruptcy law, including, without
limitation, any laws affecting successor or transferee liability.
23. CONDITIONS TO CONFIRMATION. Each of the conditions to
confirmation set forth in Section 10.1 of the Plan has been satisfied, or will
be satisfied or waived on or before the Effective Date.
24. JURISDICTION. This Court may properly retain jurisdiction
over the matters set forth in Section XIII of the Plan.
25. 9019 SETTLEMENT. Pursuant to Bankruptcy Rule 9019, and in
consideration of the classification, distribution and other benefits provided
under the Plan, the provisions of the Plan constitute a good faith compromise
and settlement of all the Claims and controversies resolved pursuant to the
Plan. Based upon the representations and informed views of counsel to the
Debtors, the Creditors' Committee, all other testimony proffered and evidence
introduced at the Confirmation Hearing and the full record of the Chapter 11
Case, the Court finds the compromises and settlements embodied in the Plan to be
fair, equitable, within the range of reasonableness and in the best interests of
the Debtors, the Estates, creditors, and other parties-in-interest.
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<PAGE> 14
DECREES
-------
NOW, THEREFORE, IT IS HEREBY ORDERED THAT
26. CONFIRMATION. The Plan, a copy of which is attached hereto
as Exhibit 1, as modified by this Order, is hereby confirmed as to Sun TV and
Appliances, Inc. and Sun Television and Appliances, Inc., and all acceptances
and rejections previously cast for or against the Plan are hereby deemed to
constitute acceptances or rejections of the Plan as modified by this Order.
27. OBJECTIONS. Each of the objections to confirmation of the
Plan which has not been withdrawn, waived or settled, and all reservations of
rights included therein, are overruled. To the extent that pleadings filed by
individuals or entities constitute objections to confirmation of the Plan and
have not been withdrawn, waived or settled, they are overruled and denied.
28. PROVISIONS OF PLAN AND ORDER NONSEVERABLE AND MUTUALLY
DEPENDENT. The provisions of the Plan and this Order, including the findings of
fact and conclusions of law set forth herein, are nonseverable and mutually
dependent.
29. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.
(a) Except as otherwise provided herein or in the Plan, all
prepetition executory contracts and prepetition unexpired leases that
have not been assumed or assumed and assigned pursuant to Section 365
of the Bankruptcy Code by any member of Sun TV are deemed to be
automatically rejected as of the Confirmation Date pursuant to Section
365(a) of the Bankruptcy Code; PROVIDED, HOWEVER, that notwithstanding
the foregoing (i) the Lease Agreement dated April 28, 1995, between Sun
TV and European American Bank, as successor-in-interest to The Vaughn
Group, Ltd., regarding certain personal property, (ii) Master Lease No.
001-0014663 dated January 30, 1997, and five remaining schedules in
connection therewith between Sun TV and Ameritech Credit Corporation
regarding computer and telecommunications equipment, and (iii) the real
property lease between Sun TV and Duke Realty, Inc., as amended by (a)
the Second Stipulation and Order Amending Lease and (b) the Stipulation
between Sun TV and Duke-Weeks Realty Limited Partnership (i) Resolving
Pre-Petition Unsecured Claim of Duke and (ii) Allowing Duke Relief from
Automatic Stay to Set Off Security Deposit pursuant to Lease between
Sun TV and Duke (each of the above parties, an "Party"), shall not be
automatically rejected as of the Confirmation Date or assumed, but
rather shall be performed by Sun TV and the respective Party in
accordance with the agreements between Sun TV and each of the Parties.
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<PAGE> 15
(b) If the rejection by the Debtors pursuant to the Plan of an
executory contract or unexpired lease results in a Claim, then such
Claim shall be released and barred forever and shall not be enforceable
against the Debtors or any of their property unless a proof of Claim is
filed with the clerk of the Bankruptcy Court and served upon, as the
case may be, counsel to the Debtors and counsel to the Creditors'
Committee within thirty (30) days after the earlier to occur of (a) the
Confirmation Date and (b) the entry of an order by the Bankruptcy Court
authorizing rejection of a particular executory contract or lease.
30. RELEASES, EXCULPATION, INJUNCTION, AND PRESERVATION OF
CAUSES OF ACTION.
(a) RELEASE OF THE DEBTORS. Except as otherwise specifically
provided for by the Plan, any Person or Entity accepting any
Distribution pursuant to the Plan shall be presumed conclusively to
have released the Debtors from any Cause of Action based on, arising
from, or in any way connected with the same subject matter as the Claim
or Equity Interest on which the Distribution is received. The release
described in the preceding sentence shall be enforceable as a matter of
contract law against any Person that accepts any Distribution pursuant
to the Plan.
(b) RELEASES OF OFFICERS, DIRECTORS, EMPLOYEES, AND
PROFESSIONALS. As of the Effective Date, the Debtors and the Creditors'
Committee release and are permanently enjoined from any prosecution or
attempted prosecution of any and all Causes of Action which they have,
may have or claim to have against (i) any present or former director,
officer or employee of the Debtors and (ii) the Professionals;
PROVIDED, HOWEVER, that the foregoing shall not operate as a waiver of
or release from any Causes of Action arising out of any express
contractual obligation owing by any such director, officer or employee
to the Debtors or any reimbursement obligation of any such director,
officer or employee with respect to a loan or advance made by the
Debtors to such director, officer or employee.
(c) INJUNCTION. The Plan operates as an injunction against any
Person commencing or continuing any action, employment of process, or
act to collect, offset, or recover any Claim or Cause of Action
satisfied or released under the Plan to the fullest extent authorized
or provided by the Bankruptcy Code, including, without limitation, to
the extent provided for or authorized by Sections 524 and 1141 thereof.
(d) SATISFACTION OF CLAIMS AND EQUITY INTERESTS. In accordance
with the Plan, the treatment accorded to Claims and Equity Interests
pursuant to the Plan shall be in full satisfaction, settlement, and
release of and in exchange for such respective Claims or Equity
Interests.
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<PAGE> 16
(e) EXCULPATION. Neither Sun TV nor the Creditors' Committee,
nor any of their respective members, officers, directors, employees,
attorneys, advisors or agents who were members, officers, directors,
employees, attorneys, advisors or agents, as the case may be, during
the Chapter 11 Case shall have or incur any liability to any holder of
a Claim or Equity Interest or to any other Person for any act or
omission in connection with, or arising out of, the Chapter 11 Case,
the pursuit of confirmation of the Plan, the consummation of the Plan,
or the administration of the Plan or the property to be distributed
under the Plan except for willful misconduct or gross negligence, and,
in all respects, Sun TV and the Creditors' Committee and each of their
respective members, officers, directors, employees, advisors, and
agents shall be entitled to rely upon the advice of counsel with
respect to their duties and responsibilities under the Plan.
(f) PRESERVATION OF CAUSES OF ACTION; DEFENSES. Except as
otherwise provided in the Plan, in accordance with section 1123(b) of
the Bankruptcy Code, Sun TV shall retain and may enforce any Avoidance
Actions or other Causes of Action (whether or not such Avoidance
Actions or other Causes of Action were commenced on or prior to the
date hereof), or rights to payment of claims, that belong to or could
have been raised by or on behalf of the Debtors or
Debtors-in-Possession or their respective Estates, and Sun TV shall
retain and may enforce such claims, rights and Causes of Action that
are property of the Debtors or their Estates, and Sun TV shall retain
and may enforce all defenses and counterclaims to all Claims asserted
against the Debtors or their Estates, including, but not limited to,
setoff, recoupment and any rights under section 502(d) of the
Bankruptcy Code.
31. NO RECOURSE. No Claim or Equity Interest holder shall have
recourse to the Debtors, the Creditors' Committee and the members thereof, or
any of their respective professionals, or their successors or assigns, or any of
their respective property on account of a Claim for which there is insufficient
Cash or other property to provide a recovery equal to that received by holders
of Allowed Claims of that type.
32. SUBSTANTIVE CONSOLIDATION. On the Effective Date, the
Estates of the Sun TV entities are to be substantively consolidated for all
purposes related to the Plan, including, without limitation, for purposes of
confirmation, Distributions and Claim determinations. The substantive
consolidation of the Estates of the Sun TV entities has the following effects:
(a) all assets and liabilities of the Estates of the Sun TV entities are to be
treated as though they were assets and liabilities of one estate, (b) no
distributions are to be made under the Plan on account of intercompany Claims
among the Debtors, (c) all guarantees by any Sun TV entity of the obligations of
any other Sun TV entity and any joint or several liability of any of the Debtors
are to be deemed to be one obligation of the consolidated Estates, and (d) each
and every Claim filed or to be filed in the Chapter 11 Case against either of
the Debtors are to be deemed
12
<PAGE> 17
filed against the consolidated Estates, and are deemed to be one Claim against
and obligation of the consolidated Estates.
33. APPROVAL OF OFFICERS, DIRECTORS, CONTINUING EXISTENCE.
(a) From and after the Confirmation Date, Sun TV shall
continue in existence for the purpose of (a) winding up its affairs as
expeditiously as reasonably possible, (b) liquidating, by conversion to
Cash or by other methods, any remaining assets of the Estates, as
expeditiously as reasonably possible, (c) enforcing and prosecuting
Causes of Action, claims, interests, rights and privileges of Sun TV,
(d) reconciling Claims and resolving Disputed Claims, (e) administering
the Plan, (f) filing appropriate tax returns, and (g) taking such other
action as may be necessary or appropriate to effectuate the Plan. Sun
TV has absolute discretion to pursue, prosecute, settle, release, or
not to take such actions with respect to any and all claims, rights, or
Causes of Action that it retains pursuant to the Plan, as it determines
in the exercise of its business judgment AFTER CONSULTATION WITH
COUNSEL FOR THE CREDITORS' COMMITTEE, and shall have no liability for
the outcome of its decision. Sun TV may incur and pay any reasonable
and necessary expenses in performing the foregoing functions.
(b) From and after the Confirmation Date, the then current
officers of Sun TV shall continue to serve in their respective
capacities through the earlier of the date Sun TV is dissolved in
accordance with Section 5.1(c) of the Plan and the date such officer
resigns, is replaced, or is terminated. From and after the Effective
Date, James Moran shall be appointed the sole director and president of
Sun TV and shall serve in such capacities on the terms set forth in
Section 5.5 of the Plan through the earlier of the date Sun TV is
dissolved in accordance with Section 5.1(c) of the Plan and the date
James Moran resigns, is terminated for cause or is unable to serve;
PROVIDED, HOWEVER, that, in the event that James Moran resigns, is
terminated or unable to serve as a director, then an individual to be
named by Sun TV and the Creditors' Committee shall, by operation of the
Plan and without need for further order by this Court or corporate
action, be appointed the sole director and president of Sun TV and
shall serve in such capacities through the earlier of the date Sun TV
is dissolved in accordance with Section 5.1(c) of the Plan and the date
such individual resigns, is terminated for cause or is unable to serve;
and PROVIDED FURTHER, that, in the event that both James Moran and his
successor resign, are terminated for cause or are unable to serve as a
director, then Sun TV, in consultation with the Creditors' Committee,
shall have the right to select their replacement who shall be appointed
the sole director and president of
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<PAGE> 18
Sun TV and shall serve in that capacity until Sun TV is dissolved in
accordance with Section 5.1(c) of the Plan.
(c) Upon the Distribution of all assets of the Estates
pursuant to the Plan and the filing by or on behalf of Sun TV of a
certification to that effect with the Bankruptcy Court, Sun TV shall be
dissolved for all purposes effective as of the Final Distribution Date
without the necessity for any other or further actions to be taken by
or on behalf of Sun TV or payments to be made in connection therewith;
PROVIDED, HOWEVER, that each member entity of Sun TV shall file with
the respective Offices of the Secretary of State for the States of
Delaware and Ohio a certificate of dissolution as appropriate; PROVIDED
FURTHER, HOWEVER, THAT NOTHING HEREIN SHALL PREVENT SUN TV FROM FILING
SUCH CERTIFICATE(S) OF DISSOLUTION AT ANY TIME ON OR AFTER THE
EFFECTIVE DATE. Such certificates of dissolution may be executed by an
officer of Sun TV in accordance with Section 14.4 of the Plan without
the need for any action or approval by the shareholders or Board of
Directors of Sun TV. From and after the Effective Date, Sun TV (i) for
all purposes shall be deemed to have withdrawn its business operation
from any state in which Sun TV was previously conducting, or is
registered or licensed to conduct, its business operations, and shall
not be required to file any document, pay any sum or take any other
action, in order to effectuate such withdrawal, (ii) shall be deemed to
have cancelled pursuant to the Plan all Equity Interests except one
authorized and issued share of the common stock of Sun TV held by the
sole director of Sun TV, and (iii) shall not be liable in any manner to
any taxing authority for franchise, business, license or similar taxes
accruing on or after the Effective Date.
34. EFFECTUATING DOCUMENTS AND FURTHER TRANSACTIONS. Upon
entry of the Confirmation Order, the President of Sun TV, and any other officer
of Sun TV designated by the same, shall be authorized to execute, deliver, file,
or record such contracts, instruments, releases and other agreements or
documents and take such actions on behalf of Sun TV as may be necessary or
appropriate to effectuate and further evidence the provisions of the Plan,
without any further action by or approval of the shareholders or Board of
Directors of Sun TV.
35. RESOLUTION OF DISPUTED CLAIMS. Unless otherwise ordered by
the Bankruptcy Court after notice and a hearing, Sun TV shall have the exclusive
right (except as to applications for allowances of compensation and
reimbursement of expenses under sections 330 and 503 of the Bankruptcy Code) to
make and file objections to Claims. Sun TV shall serve a copy of each objection
upon the holder of the Claim to which the objection is made as soon as
practicable, but in no event later than one hundred and eighty (180) days after
the Effective Date; PROVIDED, HOWEVER,
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<PAGE> 19
that such one hundred and eighty (180) day period may be extended by the
Bankruptcy Court upon the request of Sun TV. Any Claim, other than a Claim for
Professional Fees, that is not an Allowed Claim shall be determined, resolved,
or adjudicated in accordance with the Claims Objection Procedures Order, which
after the Effective Date shall apply MUTATIS MUTANDI, with Sun TV succeeding to
the rights and responsibilities of the Debtors thereunder. Prior to the
Effective Date, the filing, litigation, settlement, or withdrawal of all
objections shall be the responsibility of the Debtors.
36. NO DISTRIBUTION PENDING ALLOWANCE. Notwithstanding any
other provision of the Plan, no Cash or other property shall be distributed
under the Plan on account of any Disputed Claim, unless and until such Claim
becomes an Allowed Claim.
37. LATE CLAIMS. Except as otherwise expressly provided in the
Plan, any Claim not deemed filed pursuant to Section 1111(a) of the Bankruptcy
Code or timely filed pursuant to the Bankruptcy Code, Bankruptcy Rules or any
applicable order of this Court, shall (a) not be treated as an Allowed Claim and
(b) be expunged from the Claims register in the Chapter 11 Case without need for
any further notice, motion, or order.
38. GENERAL AUTHORIZATIONS. Sun TV is hereby authorized and
empowered pursuant to Section 1142(b) of the Bankruptcy Code to issue, execute,
deliver, file and record any documents, Court papers or pleadings, and to take
any and all actions that are necessary or desirable to implement, effectuate or
consummate the transactions contemplated by the Plan whether or not specifically
referred to in the Plan or related documents, and without further application to
or order of this Court.
39. CANCELLATION OF EQUITY INTERESTS. From and after the
Effective Date, Sun TV shall be deemed to have cancelled pursuant to the Plan
all Equity Interests except one authorized and issued share of Common Stock of
Sun TV held by the sole director of Sun TV.
40. EXEMPTION FROM TRANSFER TAXES. Pursuant to section 1146(c)
of the Bankruptcy Code, the assignment or surrender of any lease or sublease, or
the delivery of any deed or other instrument of transfer under, in furtherance
of, or in connection with the Plan, whether arising prior or subsequent to the
Confirmation Date, including any deeds, bills of sale or assignments executed in
connection with any disposition of assets contemplated by the Plan shall not be
subject to any stamp, real estate transfer, mortgage, recording, or other
similar tax.
41. RULE 9019 SETTLEMENT. All compromises and settlements
embodied in the Plan are approved.
42. RATIFICATION. All transactions effected by the Debtors
during the
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pendency of the Chapter 11 Case from the Petition Date through the Confirmation
Date are ratified.
43. CONFLICTS. In the event of any conflict or inconsistency
between the terms of (a) the Plan, (b) this Order, and (c) either of the
Disclosure Statements, the terms of this Order shall control; PROVIDED, HOWEVER,
that if the terms of the Plan or this Order (i) do not expressly resolve the
issue under consideration, or (ii) are ambiguous with regard to such issue, Sun
TV or other parties-in-interest, on such notice as may be appropriate, may seek
such relief from this Court as may be necessary.
44. DISSOLUTION OF CREDITORS' COMMITTEE. On the Final
Distribution Date, the Creditors' Committee shall be dissolved and the members
thereof shall be released from all authority, duties, responsibilities, and
obligations related to and arising from and in connection with the Chapter 11
Case, and the retention or employment of the Creditors' Committee's attorneys,
accountants, and other agents, shall terminate. The professionals retained by
the Creditors' Committee and the members thereof shall not be entitled to
compensation or reimbursement of expenses for any services rendered after the
Final Distribution Date, except as otherwise ordered by this Court or for
services rendered and expenses incurred in connection with any applications for
allowance of compensation and reimbursement of expenses pending on the Final
Distribution Date.
45. PLAN AND CONFIRMATION ORDER BINDING. Pursuant to Section
1141 of the Bankruptcy Code, effective as of the Confirmation Date, but subject
to the occurrence of the Effective Date, and except as expressly provided in the
Plan or this Order, the provisions of the Plan and this Order shall be binding
upon (a) Sun TV, (b) all holders of Claims against or Equity Interests in Sun
TV, whether or not impaired under the Plan and whether or not, if impaired, such
holders accepted the Plan, (c) each Person or Entity acquiring property under
the Plan, (d) any other party-in-interest, (e) any Person or Entity making an
appearance in the Chapter 11 Case, (f) any Entity named or referred to in the
Plan or whose actions may be required to effectuate the terms of the Plan; and
(g) each of the foregoing's respective heirs, successors, assigns, trustees,
executors, administrators, affiliates, officers, directors, agents,
representatives, attorneys, beneficiaries or guardians (including, but not
limited to, any trustee appointed for the Debtors under chapters 7 or 11 of the
Bankruptcy Code). The terms and provisions of the Plan and this Order shall
survive and remain effective after entry of any order which may be entered
converting the Chapter 11 Case to a case under chapter 7 of the Bankruptcy Code,
and the terms and provisions of the Plan shall continue to be effective in this
or any superseding case under the Bankruptcy Code.
46. SEPARATE ORDER FOR EACH SUN TV ENTITY. This Order is and
shall be deemed to be a separate Order with respect to each Sun TV entity for
all purposes. The Clerk of this Court is directed to file and docket this Order
in the chapter 11 case of
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each of the Debtors.
47. PLAN PROVISIONS TO BE GIVEN EFFECT. The failure
specifically to include or reference any particular provision of the Plan in
this Order shall not diminish or impair the effectiveness of such provision, it
being the intent of the Court that the Plan be confirmed in its entirety.
48. PLAN CLASSIFICATION CONTROLLING. The classification of
claims for purposes of payment of the Distributions to be made under the Plan is
governed solely by the terms of the Plan. The classifications set forth on the
Ballots tendered to or returned by the creditors of Sun TV in connection with
voting on the Plan (a) were set forth thereon solely for purposes of voting on
the acceptance or rejection of the Plan, (b) do not necessarily represent and in
no event shall be deemed to modify or otherwise affect the actual classification
of such claims under the terms of the Plan for distribution purposes, and (c)
may not be relied upon by any creditor as actually representing the actual
classification of such claims under the terms of the Plan for distribution
purposes.
49. THE RECORD. The record of the Confirmation Hearing is
closed. The findings of fact and conclusions of law of this Court set forth
herein and at the Confirmation Hearing shall constitute findings of fact and
conclusions of law pursuant to Bankruptcy Rule 7052, as made applicable herein
by Bankruptcy Rule 9014, and the findings of fact and conclusions of this Court
at the Confirmation Hearing are incorporated herein by reference.
50. FINAL FEE APPLICATION FOR PROFESSIONAL FEES. Unless
otherwise ordered by this Court, all (a) final fee applications for Professional
Fees based on services rendered in connection with this Chapter 11 Case prior to
the Effective Date or (b) pursuant to sections 503(b) and 507 of the Bankruptcy
Code for services rendered, or costs and expenses of preserving the estates of
the Sun TV entities, shall be filed with this Court and served upon Sun TV and
the Office of the United States Trustee, no later than thirty (30) days after
the Effective Date. Any professional retained in this Chapter 11 Case pursuant
to sections 327 or 1103 of the Bankruptcy Code or otherwise, or other Person or
Entity that fails timely to file a fee application for final allowance of
Professional Fees shall be forever barred from asserting such Claims against Sun
TV and Sun TV shall be discharged from such Claims, and the Sun TV entities
shall not be obligated to pay such Claims. Objections to such fee applications,
if any, shall be filed and served on Sun TV, the Office of the United States
Trustee, and the Person or Entity making such application no later than
forty-five (45) days after the Effective Date. Final allowance of Professional
Fees shall be subject to approval by this Court following a hearing. The Court
shall retain jurisdiction to determine such fee requests, and the right to
extend or change the timetables established herein.
51. POST-CONFIRMATION DATE FEES AND EXPENSES OF PROFESSIONALS.
After the Confirmation Date, Sun TV shall, in the ordinary course of business
and without the
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necessity for any approval by the Bankruptcy Court, pay the reasonable fees and
expenses of the professional persons employed by Sun TV or the Creditors'
Committee in connection with the implementation and consummation of the Plan,
the claims reconciliation process and any other matters as to which such
professionals may be engaged. The fees and expenses of such professionals shall
be paid by Sun TV within ten (10) Business Days after submission to Sun TV and
the Creditors' Committee of a detailed invoice therefor. If Sun TV or the
Creditors' Committee dispute the reasonableness of any such invoice, Sun TV
shall timely pay the undisputed portion of such invoice, and Sun TV, the
Creditors' Committee, or the affected professional may, after attempting to
resolve the dispute, submit such dispute to this Court for a determination of
the reasonableness of such invoice.
52. NO INTEREST. Except as specifically provided for in the
Plan or this Order, interest shall not accrue on Claims, and no holder of a
Claim shall be entitled to interest accruing on or after the Petition Date on
any Claim. Interest shall not accrue or be paid upon any Disputed Claim in
respect of the period from the Petition Date to the date a final Distribution is
made thereon if and after such Disputed Claim becomes an Allowed Claim. Except
as expressly provided herein, no prepetition Claim shall be Allowed to the
extent that it is for postpetition interest or other similar charges.
53. RETENTION OF JURISDICTION This Court shall retain
jurisdiction in accordance with the terms of Section XIII of the Plan, the other
provisions of this Order, and Section 1142 of the Bankruptcy Code.
54. NOTICE OF EFFECTIVE DATE. On the first Business Day after
the Confirmation Date on which all conditions to effectiveness of the Plan are
satisfied or waived as provided in Section X of the Plan, or as soon thereafter
as is reasonably practicable, Sun TV shall file with this Court a Notice of
Effective Date, substantially in the form of Exhibit B to the Plan, which notice
shall constitute appropriate and adequate notice that the Plan has become
effective; PROVIDED HOWEVER, that Sun TV shall have no obligation to notify any
Entity other than the Creditors' Committee of such fact. The Plan shall be
deemed to be effective as of 12:01 a.m., prevailing Eastern Time, on the date of
such filing. A courtesy copy of the Notice of Effective Date may be, but shall
not be required to be, sent by first class mail, postage prepaid (or, at Sun
TV's option, by courier or facsimile) to those Entities that have filed with the
Bankruptcy Court requests for notices pursuant to Bankruptcy Rule 2002.
55. SUFFICIENCY OF NOTICE OF EFFECTIVE DATE. Mailing of the
Notice of Effective Date in the time and manner as set forth in the preceding
paragraph is adequate and satisfies the requirements of Bankruptcy Rules 2002
and 3020(c), and no further notice is necessary.
56. RETURNED MAIL. Notwithstanding anything to the contrary
herein, no notice or service of any kind will be required to be mailed or made
upon any Entity
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to whom Sun TV mailed a notice of the Disclosure Statement Hearing or the
various packages containing, among other things, notice of the date for the
Confirmation Hearing, but received any of such notices returned by the United
States Postal Service marked "undeliverable as addressed," "moved - left no
forwarding address" or "forwarding order expired," or similar reason, unless Sun
TV has been informed in writing by such person of that person's new address.
57. AUTHORIZATION TO CLOSE. This Court directs that Federal
Rule of Civil Procedure 62(a) shall not apply to this Order and authorizes Sun
TV to consummate the Plan immediately after entry of this Order, except as
otherwise provided in this Order.
Dated: Wilmington, Delaware
December 22, 1999
/s/ Mary F. Walrath
------------------------------
UNITED STATES BANKRUPTCY JUDGE
Movant to send copies to all
parties and file certificate
of service with the court.
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EXHIBIT 1
THE PLAN
--------
<PAGE> 25
EXHIBIT A TO THE PLAN
ASSUMPTION SCHEDULE
-------------------
NONE.
<PAGE> 26
EXHIBIT B TO THE PLAN
FORM OF NOTICE OF EFFECTIVE DATE
--------------------------------
<PAGE> 27
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
- ----------------------------------------x
In re: :
: Chapter 11
SUN TV AND APPLIANCES, INC. :
AND SUN TELEVISION AND : Case No. 98-2107 (MFW)
APPLIANCES, INC., :
: Jointly Administered
Debtors. :
:
- ----------------------------------------x
NOTICE OF OCCURRENCE OF EFFECTIVE DATE OF FIRST
AMENDED JOINT PLAN OF LIQUIDATION OF SUN TV
UNDER CHAPTER 11 OF THE BANKRUPTCY CODE
---------------------------------------
TO ALL HOLDERS OF CLAIMS, HOLDERS OF EQUITY INTERESTS AND OTHER
PARTIES-IN-INTEREST IN THE CHAPTER 11 CASES OF THE ABOVE-NAMED DEBTORS:
PLEASE TAKE NOTICE that, on December __, 1999, the United
States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court")
entered the Findings of Fact and Conclusions of Law Relating to Confirmation of,
and Order Under 11 U.S.C. ss. 1129(a) and (b) Confirming, First Amended Joint
Plan of Liquidation of Sun TV under Chapter 11 of the Bankruptcy Code (such plan
of liquidation, as modified and amended, being the "Plan," and such order being
the "Order"). (Capitalized terms not defined in this notice have the meanings
ascribed to them in the Order.)
PLEASE TAKE FURTHER NOTICE that, all of the conditions to the
Effective Date of the Plan set forth in Section 10.2 of the Plan have been
satisfied or waived in accordance with Section 10.3 of the Plan.
PLEASE TAKE FURTHER NOTICE that, the provisions of the Plan
bind (a) Sun TV, (b) all holders of Claims against or Equity Interests in Sun
TV, whether or not impaired under the Plan and whether or not, if impaired, such
holders accepted the Plan, (c) each Person or Entity acquiring property under
the Plan, (d) any other party-in-interest, (e) any Person or Entity making an
appearance in Sun TV's chapter 11 cases, (f) any Entity named or referred to in
the Plan or whose actions may be required to effectuate the terms of the Plan;
and (g) each of the foregoing's respective heirs, successors, assigns, trustees,
executors, administrators, affiliates, officers, directors, agents,
representatives, attorneys, beneficiaries or guardians (including, but not
limited
<PAGE> 28
to, any trustee appointed for the Debtors under chapters 7 or 11 of the
Bankruptcy Code).
PLEASE TAKE FURTHER NOTICE that, pursuant to the Plan,
Administrative Expense Claims, Priority Tax Claims, Priority Non-Tax Claims,
Convenience Claims, and Secured Claims are unimpaired. Unsecured Claims are
impaired and will receive only those distributions provided under the Plan.
Preferred Stock and Common Stock will receive no distribution under the Plan.
PLEASE TAKE FURTHER NOTICE that, except as otherwise
specifically provided for by the Plan, any Person or Entity accepting any
Distribution pursuant to the Plan shall be presumed conclusively to have
released the Debtors from any Cause of Action based on, arising from, or in any
way connected with the same subject matter as the Claim or Equity Interest on
which the Distribution is received.
PLEASE TAKE FURTHER NOTICE that, as of the Effective Date, the
Debtors and the Creditors' Committee release and are permanently enjoined from
any prosecution or attempted prosecution of any and all Causes of Action which
they have, may have or claim to have against (i) any present or former director,
officer or employee of the Debtors and (ii) the Professionals; PROVIDED,
HOWEVER, that the foregoing shall not operate as a waiver of or release from any
Causes of Action arising out of any express contractual obligation owing by any
such director, officer or employee to the Debtors or any reimbursement
obligation of any such director, officer or employee with respect to a loan or
advance made by the Debtors to such director, officer or employee.
PLEASE TAKE FURTHER NOTICE that, the Plan operates as an
injunction against any Person commencing or continuing any action, employment of
process, or act to collect, offset, or recover any Claim or Cause of Action
satisfied or released under the Plan to the fullest extent authorized or
provided by the Bankruptcy Code, including, without limitation, to the extent
provided for or authorized by Sections 524 and 1141 thereof.
PLEASE TAKE FURTHER NOTICE that, in accordance with the Plan,
the treatment accorded to Claims and Equity Interests pursuant to the Plan shall
be in full satisfaction, settlement, and release of and in exchange for such
respective Claims or Equity Interests.
PLEASE TAKE FURTHER NOTICE that, neither Sun TV nor the
Creditors' Committee, nor any of their respective members, officers, directors,
employees, attorneys, advisors or agents who were members, officers, directors,
employees, attorneys, advisors or agents, as the case may be, during the Chapter
11 Case shall have or incur any liability to any holder of a Claim or Equity
Interest or to any other Person for any act or omission in connection with, or
arising out of, the
2
<PAGE> 29
Chapter 11 Case, the pursuit of confirmation of the Plan, the consummation of
the Plan, or the administration of the Plan or the property to be distributed
under the Plan except for willful misconduct or gross negligence, and, in all
respects, Sun TV and the Creditors' Committee and each of their respective
members, officers, directors, employees, advisors, and agents shall be entitled
to rely upon the advice of counsel with respect to their duties and
responsibilities under the Plan.
PLEASE TAKE FURTHER NOTICE that, except as otherwise provided
in the Plan, in accordance with section 1123(b) of the Bankruptcy Code, Sun TV
shall retain and may enforce any Avoidance Actions or other Causes of Action
(whether or not such Avoidance Actions or other Causes of Action were commenced
on or prior to the date of the Order), or rights to payment of claims, that
belong to or could have been raised by or on behalf of the Debtors or
Debtors-in-Possession or their respective Estates, and Sun TV shall retain and
may enforce such claims, rights and Causes of Action that are property of the
Debtors or their Estates, and Sun TV shall retain and may enforce all defenses
and counterclaims to all Claims asserted against the Debtors or their Estates,
including, but not limited to, setoff, recoupment and any rights under section
502(d) of the Bankruptcy Code. Sun TV has absolute discretion to pursue,
prosecute, settle, release, or not to take such actions with respect to any and
all claims, rights, or Causes of Action that it retains pursuant to the Plan, as
it determines in the exercise of its business judgment AFTER CONSULTATION WITH
COUNSEL FOR THE CREDITORS' COMMITTEE, and shall have no liability for the
outcome of its decision.
PLEASE TAKE FURTHER NOTICE that, no Claim or Equity Interest
holder shall have recourse to the Debtors, the Creditors' Committee and the
members thereof, or any of their respective professionals, or their successors
or assigns, or any of their respective property on account of a Claim for which
there is insufficient Cash or other property to provide a recovery equal to that
received by holders of Allowed Claims of that type.
PLEASE TAKE FURTHER NOTICE that, any party in interest wishing
to obtain a copy of the Order may request such copy at their own expense by
contacting Rena Strappazon, Legal Assistant, Milbank, Tweed, Hadley & McCloy
LLP, 1 Chase Manhattan Plaza, New York, NY 10005 (telephone (212) 530-5196;
facsimile (212) 530-5219). Copies of the Order may also be reviewed during
regular business hours at
3
<PAGE> 30
the United States Bankruptcy Court for the District of Delaware, 824 Market
Street, 6th Floor, Wilmington, Delaware 19801.
Dated: __________ __, 2000
Wilmington, Delaware
BY ORDER OF THE BANKRUPTCY COURT
Mary F. Walrath, Bankruptcy Judge
4
<PAGE> 31
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
- -----------------------------------------x
In re: :
: Chapter 11
SUN TV AND APPLIANCES, INC. :
AND SUN TELEVISION AND : Case No. 98-2107 (MFW)
APPLIANCES, INC., :
: Jointly Administered
Debtors. :
:
- -----------------------------------------x
FIRST AMENDED JOINT PLAN OF LIQUIDATION OF
SUN TV UNDER CHAPTER 11 OF BANKRUPTCY CODE
------------------------------------------
MILBANK TWEED HADLEY & MCCLOY LLP
1 Chase Manhattan Plaza
New York, New York 10005
(212) 530-5000
- and -
YOUNG CONAWAY STARGATT & TAYLOR, LLP
11th Floor, Rodney Square North
P.O. Box 391
Wilmington, Delaware 19899-0391
(302) 571-6600
Dated: November 15, 1999
<PAGE> 32
Page
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
SECTION I DEFINITIONS.............................................................................1
1.1 DEFINED TERMS.................................................................1
1.1.1 "Administrative Expense Claim"................................................1
1.1.2 "Allowed".....................................................................2
1.1.3 "Allowed [Class Designation] Claim or Allowed [Class Designation] Interest"...2
1.1.4 "Allowed Reclamation Claim"...................................................2
1.1.5 "Available Cash"..............................................................2
1.1.6 "Assumption Schedule".........................................................3
1.1.7 "Avoidance Action"............................................................3
1.1.8 "Bankruptcy Code".............................................................3
1.1.9 "Bankruptcy Court"............................................................3
1.1.10 "Bankruptcy Rules"............................................................3
1.1.11 "Business Day"................................................................3
1.1.12 "Cash"........................................................................4
1.1.13 "Causes of Action"............................................................4
1.1.14 "Chapter 11 Case".............................................................4
1.1.15 "Claim".......................................................................4
1.1.16 "Claims Agent"................................................................4
1.1.17 "Claims Objection Procedures Order"...........................................4
1.1.18 "Class".......................................................................4
1.1.19 "Collateral"..................................................................4
1.1.20 "Common Stock Equity Interest"................................................4
1.1.21 "Confirmation Date"...........................................................4
1.1.22 "Confirmation Hearing"........................................................5
1.1.23 "Confirmation Order"..........................................................5
1.1.24 "Convenience Claim"...........................................................5
1.1.25 "Creditors' Committee"........................................................5
1.1.26 "Cure"........................................................................5
1.1.27 "Debtors".....................................................................5
1.1.28 "Debtors-in-Possession".......................................................5
1.1.29 "Disallowed Claim"............................................................6
1.1.30 "Disbursing Agent"............................................................6
1.1.31 "Disclosure Statement"........................................................6
1.1.32 "Disputed Claim"..............................................................6
1.1.33 "Disputed Claims Reserve".....................................................6
1.1.34 "Distribution"................................................................6
1.1.35 "Effective Date"..............................................................6
1.1.36 "Equity Interest".............................................................7
1.1.37 "Entity"......................................................................7
1.1.38 "Estate"......................................................................7
1.1.39 "Final Distribution Date".....................................................7
</TABLE>
i
<PAGE> 33
<TABLE>
<CAPTION>
Page
----
<S> <C>
1.1.40 "Final Order".....................................................................7
1.1.41 "Initial Distribution Date".......................................................8
1.1.42 "IRS".............................................................................8
1.1.43 "Liabilities".....................................................................8
1.1.44 "Lien"............................................................................8
1.1.45 "Miscellaneous Secured Claims"....................................................8
1.1.46 "Notice of Effective Date"........................................................8
1.1.47 "Person"..........................................................................8
1.1.48 "Petition Date"...................................................................8
1.1.49 "Plan"............................................................................8
1.1.50 "Preferred Stock Equity Interest".................................................9
1.1.51 "Priority Claim"..................................................................9
1.1.52 "Priority Non-Tax Claim"..........................................................9
1.1.53 "Priority Tax Claim"..............................................................9
1.1.54 "Professionals"...................................................................9
1.1.55 "Professional Fees"...............................................................9
1.1.56 "Ratable or Ratable Share"........................................................9
1.1.57 "Schedules"......................................................................10
1.1.58 "Secured Claim"..................................................................10
1.1.59 "Security Deposit Claim".........................................................10
1.1.60 "Statutory Lien Claim"...........................................................10
1.1.61 "Subsequent Distribution"........................................................10
1.1.62 "Subsequent Distribution Date"...................................................10
1.1.63 "Sun TV".........................................................................10
1.1.64 "Tax Code".......................................................................11
1.1.65 "United States Trustee"..........................................................11
1.1.66 "Unsecured Claim"................................................................11
1.1.67 "Unsecured Deficiency Claim".....................................................11
1.2 OTHER TERMS......................................................................11
1.3 INTERPRETATION; APPLICATION OF DEFINITIONS, RULES OF CONSTRUCTION AND
COMPUTATION OF TIME..............................................................11
Section II PAYMENT OF ADMINISTRATIVE EXPENSE CLAIMS and PRIORITY
TAX CLAIMS.......................................................................12
2.1 ADMINISTRATIVE EXPENSE CLAIMS....................................................12
2.2 PRIORITY TAX CLAIMS..............................................................12
SECTION III CLASSIFICATION AND TREATMENT OF CLAIMS AND EQUITY INTERESTS..............................13
3.1 CLASSIFICATION...................................................................13
3.2 TREATMENT........................................................................14
SECTION IV IMPAIRED AND UNIMPAIRED CLASSES OF CLAIMS AND EQUITY
INTERESTS UNDER THE PLAN; ACCEPTANCE OR REJECTION OF
THE PLAN.........................................................................17
4.1 HOLDERS OF CLAIMS ENTITLED TO VOTE...............................................17
4.2 ACCEPTANCE BY UNIMPAIRED CLASSES.................................................17
</TABLE>
ii
<PAGE> 34
<TABLE>
<CAPTION>
Page
----
<S> <C>
4.3 ELIMINATION OF CLASSES.......................................................................18
4.4 NON-CONSENSUAL CONFIRMATION..................................................................18
4.5 REVOCATION OF THE PLAN.......................................................................18
SECTION V MEANS FOR IMPLEMENTATION AND EXECUTION OF THIS PLAN....................................................18
5.1 CONTINUING EXISTENCE.........................................................................18
5.2 FUNDING FOR THIS PLAN........................................................................20
5.3 ACCOUNTS.....................................................................................20
5.4 CLOSING OF THE CHAPTER 11 CASE...............................................................20
5.5 ENGAGEMENT OF DEBTOR OFFICER.................................................................20
SECTION VI PROVISIONS GOVERNING DISTRIBUTIONS....................................................................20
6.1 DISTRIBUTIONS................................................................................20
6.2 DISTRIBUTIONS OF CASH........................................................................22
6.3 DELIVERY OF DISTRIBUTIONS AND UNDELIVERABLE DISTRIBUTIONS....................................22
6.4 WITHHOLDING AND REPORTING REQUIREMENTS.......................................................23
6.5 TIME BAR TO CASH PAYMENTS....................................................................23
6.6 SETOFFS......................................................................................23
6.7 PROFESSIONAL FEES AND EXPENSES...............................................................24
6.8 TRANSACTIONS ON BUSINESS DAYS................................................................24
6.9 MINIMUM DISTRIBUTIONS........................................................................24
SECTION VII PROCEDURES FOR RESOLVING AND TREATING DISPUTED CLAIMS................................................24
7.1 NO DISTRIBUTION PENDING ALLOWANCE............................................................24
7.2 RESOLUTION OF DISPUTED CLAIMS................................................................24
7.3 ESTIMATION...................................................................................25
7.4 RESERVE ACCOUNTS FOR DISPUTED CLAIMS.........................................................25
7.5 INVESTMENT OF DISPUTED CLAIMS RESERVE........................................................26
7.6 ALLOWANCE OF DISPUTED CLAIMS.................................................................26
7.7 RELEASE OF FUNDS FROM DISPUTED CLAIMS RESERVE................................................26
7.8 LATE CLAIMS..................................................................................26
SECTION VIII EXECUTORY CONTRACTS AND UNEXPIRED LEASES UNDER THIS
PLAN.........................................................................................27
8.1 ALL EXECUTORY CONTRACTS AND UNEXPIRED LEASES REJECTED IF NOT LISTED ON ASSUMPTION SCHEDULE...27
8.2 ASSUMED EXECUTORY CONTRACTS AND UNEXPIRED LEASES.............................................27
8.3 PAYMENTS RELATED TO ASSUMPTION OF EXECUTORY CONTRACTS AND
UNEXPIRED LEASES.............................................................................28
8.4 BAR DATE FOR REJECTION DAMAGES...............................................................28
8.5 RETIREE BENEFITS.............................................................................28
SECTION IX SUBSTANTIVE CONSOLIDATION.............................................................................28
SECTION X CONDITIONS PRECEDENT TO CONFIRMATION DATE AND EFFECTIVE DATE OF PLAN...................................29
10.1 CONDITIONS TO CONFIRMATION DATE OF THE PLAN..................................................29
</TABLE>
iii
<PAGE> 35
<TABLE>
<CAPTION>
Page
----
<S> <C>
10.2 CONDITIONS TO THE EFFECTIVE DATE OF THE PLAN................................30
10.3 WAIVER OF CONDITIONS........................................................31
10.4 NOTICE OF EFFECTIVE DATE....................................................31
SECTION XI EFFECTS OF PLAN CONFIRMATION.........................................................31
11.1 BINDING EFFECT..............................................................31
11.2 TERM OF INJUNCTIONS OR STAYS................................................31
11.3 PRESERVATION OF CAUSES OF ACTION; DEFENSES..................................31
SECTION XII RELEASES............................................................................32
12.1 RELEASE OF THE DEBTORS......................................................29
12.2 RELEASES OF OFFICERS, DIRECTORS, EMPLOYEES, AND PROFESSIONALS...............32
SECTION XIII RETENTION OF JURISDICTION.........................................................32
13.1 JURISDICTION OF BANKRUPTCY COURT............................................32
SECTION XIV MISCELLANEOUS PROVISIONS...........................................................34
14.1 DELETION OF CLASSES AND SUBCLASSES..........................................34
14.2 ADDITION OF SUBCLASSES......................................................34
14.3 DISSOLUTION OF THE CREDITORS' COMMITTEE.....................................34
14.4 EFFECTUATING DOCUMENTS AND FURTHER TRANSACTIONS.............................34
14.5 EXEMPTION FROM TRANSFER TAXES...............................................34
14.6 EXCULPATION.................................................................35
14.7 POST-CONFIRMATION DATE FEES AND EXPENSES OF PROFESSIONALS...................35
14.8 PAYMENT OF STATUTORY FEES...................................................35
14.9 MODIFICATION OF PLAN........................................................36
14.10 WITHDRAWAL OR REVOCATION....................................................36
14.11 COURTS OF COMPETENT JURISDICTION............................................36
14.12 NOTICES.....................................................................36
14.13 NO INTEREST.................................................................38
14.14 SEVERABILITY................................................................38
14.15 GOVERNING LAW...............................................................38
14.16 FAILURE OF EFFECTIVE DATE...................................................38
14.17 PLAN CONTROLS...............................................................39
14.18 RESERVATION OF RIGHTS.......................................................39
14.19 BINDING EFFECT..............................................................39
14.20 HEADINGS....................................................................39
14.21 EXHIBITS....................................................................40
</TABLE>
iv
<PAGE> 36
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
- ------------------------------------x
:
In re: :
: Chapter 11
SUN TV AND APPLIANCES, INC. :
AND SUN TELEVISION AND : Case No. 98-2107 (MFW)
APPLIANCES, INC., :
: Jointly Administered
Debtors. :
:
- ------------------------------------x
FIRST AMENDED JOINT PLAN OF LIQUIDATION OF SUN TV
UNDER CHAPTER 11 OF THE BANKRUPTCY CODE
---------------------------------------
Sun TV and Appliances, Inc. and Sun Television and Appliances,
Inc., the Debtors and Debtors-in-Possession in the above-captioned chapter 11
cases, propose the following First Amended Joint Plan of Liquidation pursuant to
the provisions of chapter 11 of the Bankruptcy Code:
All holders of Claims are encouraged to read the Plan and the
Disclosure Statement in their entirety before voting to accept or reject the
Plan.
Subject to the restrictions on modifications set forth in
section 1127 of the Bankruptcy Code and those restrictions on modifications set
forth in Article XIV of the Plan, Sun TV expressly reserves its right to alter,
amend or modify the Plan, one or more times, before its substantial
consummation.
SECTION I
DEFINITIONS
1.1 DEFINED TERMS. The following terms, when used in this Plan
or any subsequent amendments or modifications thereof, shall have the meanings
defined below:
1.1.1 "Administrative Expense Claim" means any right to
payment constituting a cost or expense of administration of the Chapter 11 Case
Allowed under sections 503(b) and 507(a)(1) of the Bankruptcy Code, including
(a) any actual and necessary costs and expenses of preserving the Estates of the
Debtors, (b) any actual and necessary costs and expenses of operating the
businesses of the Debtors, (c) any
<PAGE> 37
indebtedness or obligations incurred or assumed by the Debtors in the ordinary
course of business in connection with the conduct of their business, (d) Allowed
Reclamation Claims, (e) any allowances of compensation and reimbursement of
expenses to the extent Allowed by Final Order under sections 330, 331 or 503 of
the Bankruptcy Code, whether fixed before or after the Effective Date, and (f)
any fees or charges assessed against the Estates of the Debtors under section
1930, Chapter 123, title 28, United States Code, including post-Confirmation
Date and post-Effective Date fees and charges.
1.1.2 "Allowed" means, with reference to any Claim (including
any Administrative Expense Claim), (a) any Claim against the Debtors, proof of
which was filed within the applicable period of limitation fixed by the
Bankruptcy Court in accordance with Rule 3003(c)(3) of the Bankruptcy Rules (i)
as to which no objection to the allowance thereof has been interposed within the
applicable period of limitation fixed by this Plan, the Bankruptcy Code, the
Bankruptcy Rules or a Final Order, (ii) as to which no action has been commenced
to avoid such Claim within the applicable period of limitation fixed by this
Plan, or (iii) as to which an objection has been interposed, to the extent such
Claim has been allowed (whether in whole or in part) by a Final Order, (b) if no
proof of Claim was so filed, any Claim against the Debtors which has been listed
by the Debtors in their respective Schedules, as such Schedules may be amended
from time to time in accordance with Rule 1009 of the Bankruptcy Rules, as
liquidated in amount and not disputed or contingent (or which proof of Claim has
been withdrawn or Disallowed), (c) any Claim arising from the recovery of
property under sections 330 or 553 of the Bankruptcy Code and allowed by the
Bankruptcy Court in accordance with section 502(h) of the Bankruptcy Code, (d)
any Claim allowed under or pursuant to the terms of this Plan, or (e) any Claim
that has been allowed by a Final Order.
1.1.3 "Allowed [Class Designation] Claim or Allowed [Class
Designation] Interest" means an Allowed Claim or an Allowed Equity Interest in
the specified Class.
1.1.4 "Allowed Reclamation Claim" means a Claim as to which
administrative priority has been allowed pursuant to a Final Order of the
Bankruptcy Court pursuant to section 546(c)(2)(A) of the Bankruptcy Code.
1.1.5 "Available Cash" means all cash of the Estates to be
distributed to the holders of Allowed Claims less (i) the amount of cash as
determined from time to time by Sun TV to be necessary to fund adequately the
administration of this Plan and the Chapter 11 Case on and after the Effective
Date, including, without limitation, funds for the purchase of tail or extended
coverage under any policy of directors and officers liability insurance, and
(ii) the amount of cash deposited into the Disputed Claims Reserve; PROVIDED,
HOWEVER, that Available Cash shall not include Collateral or any proceeds of
Collateral securing any Allowed Secured Claims.
2
<PAGE> 38
1.1.6 "Assumption Schedule" means the schedule of executory
contracts and unexpired leases designated by Sun TV for assumption by and
assignment to, as may be the case, another Entity as of the Effective Date of
the Plan, pursuant to sections 365 and 1123(b)(2) of the Bankruptcy Code and
Section 8.2 of the Plan which schedule shall be attached hereto as Exhibit A.
1.1.7 "Avoidance Action" means any avoidance or recovery
action under sections 542, 544, 545, 547, 548, 549, 550, 551 and 553 of the
Bankruptcy Code.
1.1.8 "Bankruptcy Code" means title 11 of the United States
Code, as amended from time to time, as applicable to this Chapter 11 Case, as in
effect on the Confirmation Date.
1.1.9 "Bankruptcy Court" means the United States Bankruptcy
Court for the District of Delaware having jurisdiction over the Chapter 11 Case.
1.1.10 "Bankruptcy Rules" means the Federal Rules of
Bankruptcy Procedure as promulgated by the United States Supreme Court under
section 2075, title 28, United States Code, the Federal Rules of Civil
Procedure, as amended, as applicable to the Chapter 11 Case and the Local Rules
of the Bankruptcy Court, as amended from time to time and applicable to the
Chapter 11 Case.
1.1.11 "Business Day" means any day other than (i) a Saturday,
(ii) a Sunday, (iii) any other day on which banking institutions in New York,
New York are required or authorized to close by law or executive order, and (iv)
the Friday after Thanksgiving.
1.1.12 "Cash" means legal tender of the United States of
America.
1.1.13 "Causes of Action" means any and all actions, causes of
action, liabilities, obligations, rights, suits, debts, sums of money, damages,
judgments, claims and demands whatsoever, whether known or unknown, in law,
equity or otherwise, including all Avoidance Actions.
1.1.14 "Chapter 11 Case" means the cases commenced under
chapter 11 of the Bankruptcy Code by Sun TV before the Bankruptcy Court that are
administratively consolidated under Case No. 98-2107 (MFW).
1.1.15 "Claim" means a claim against Sun TV, whether or not
asserted, as defined in section 101(5) of the Bankruptcy Code.
1.1.16 "Claims Agent" means Donlin, Recano & Company, Inc.
3
<PAGE> 39
1.1.17 "Claims Objection Procedures Order" means that certain
Order Establishing Procedure for Objections to Claims and Settlement Authority,
dated October 6, 1999.
1.1.18 "Class" means a category of holders of Claims or
Interests described in Section III hereof.
1.1.19 "Collateral" means any property, or interest in
property, of the Estate of any of the Debtors subject to a Lien to secure the
payment or performance of a Claim, which Lien is not subject to avoidance under
the Bankruptcy Code.
1.1.20 "Common Stock Equity Interest" means the shares of
common stock of Sun TV.
1.1.21 "Confirmation Date" means the date upon which the Clerk
of the Bankruptcy Court enters the Confirmation Order on the docket of the
Bankruptcy Court.
1.1.22 "Confirmation Hearing" means the hearing held by the
Bankruptcy Court on confirmation of this Plan, as it may be adjourned or
continued from time to time.
1.1.23 "Confirmation Order" means the order of the Bankruptcy
Court confirming the Plan under section 1129 of the Bankruptcy Code.
1.1.24 "Convenience Claim" means (a) an Allowed Unsecured
Claim against Sun TV in an amount equal to Twenty-five Dollars ($25) or less,
(b) the Allowed Unsecured Claim against Sun TV of a holder that has irrevocably
elected on its ballot to reduce such Claim against Sun TV to the amount of
Twenty-five Dollars ($25) and/or (c) a Disputed Unsecured Claim against Sun TV
that becomes an Allowed Unsecured Claim of Twenty-five Dollars ($25) or less
with the consent of and in the amount agreed to by Sun TV or pursuant to a Final
Order.
1.1.25 "Creditors' Committee" means the official Creditors'
Committee of unsecured creditors appointed by the United States Trustee in the
Chapter 11 Case on October 1, 1998 to represent unsecured creditors of the
Debtors, as such Creditors' Committee may be constituted from time to time.
1.1.26 "Cure" means the distribution of Cash, or such other
property as may be agreed upon by the parties and/or ordered by the Bankruptcy
Court, with respect to the assumption of an executory contract or unexpired
lease, pursuant to section 365(b) of the Bankruptcy Code, in an amount equal to
all accrued, due and unpaid monetary obligations, without interest, or such
other amount as may be agreed upon by the parties or ordered by the Bankruptcy
Court, under such executory contract or unexpired lease, to the extent such
obligations are enforceable under the Bankruptcy Code and applicable
non-bankruptcy law.
4
<PAGE> 40
1.1.27 "Debtors" means, collectively, Sun TV.
1.1.28 "Debtors-in-Possession" means the Debtors in their
capacity as debtors-in-possession in the Chapter 11 Case under section 1107 of
the Bankruptcy Code.
1.1.29 "Disallowed Claim" means (a) a Claim, or any portion
thereof, that has been disallowed by a Final Order or (b) unless scheduled by
the Debtors as a fixed, liquidated, non-contingent and undisputed Claim, a Claim
as to which a proof of Claim bar date has been established by the Bankruptcy
Code, Bankruptcy Rules or Final Order of the Bankruptcy Court but no proof of
Claim has been timely filed or deemed timely filed with the Bankruptcy Court
pursuant to either the Bankruptcy Code or any Final Order of the Bankruptcy
Court.
1.1.30 "Disbursing Agent" means an entity, which may be Sun
TV, designated by Sun TV and the Creditors' Committee on or before the
Confirmation Date to serve as Sun TV's agent to make Distributions to Classes 1,
3 and 4 pursuant to Section III of the Plan and administer the Disputed Claims
Reserve with respect to such Classes. Any reference in this Plan to Sun TV in
connection with any such activities shall include the Disbursing Agent.
1.1.31 "Disclosure Statement" means the disclosure statement
relating to this Plan, dated as of the date hereof, including the exhibits and
schedules thereto, as the same may be amended, modified or supplemented from
time to time.
1.1.32 "Disputed Claim" means a Claim, or any portion thereof,
that is neither an Allowed Claim nor a Disallowed Claim.
1.1.33 "Disputed Claims Reserve" means a reserve of Cash for
the relevant Class, established herein for, among other things, (a) the payment
or other satisfaction of Disputed Claims that become Allowed Claims after the
Effective Date, and (b) the making of additional Distributions to holders of
previously Allowed Claims, which reserve shall be held in trust for the benefit
of the holders of the above-referenced types of Claims and will not constitute
property of the Estates.
1.1.34 "Distribution" means the distribution of Cash in
accordance with this Plan.
1.1.35 "Effective Date" means the first Business Day on which
(a) all conditions precedent set forth in Section 10.2 of the Plan have been
satisfied or waived as provided in Section 10.3 hereof and (b) no stay of the
Confirmation Order is in effect.
1.1.36 "Equity Interest" means as of the Petition Date, any
capital stock or other ownership interest in Sun TV, including a Common Stock
Equity Interest and a Preferred Stock Equity Interest, whether or not
transferable, and any option, warrant, or
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right to purchase, sell, or subscribe for an ownership interest or other equity
security in Sun TV.
1.1.37 "Entity" has the meaning assigned to such term in
section 101(15) of the Bankruptcy Code.
1.1.38 "Estate" means , as to each Debtor, the estate of such
Debtor in its Chapter 11 Case created by section 541 of the Bankruptcy Code upon
the commencement of such Chapter 11 Case.
1.1.39 "Final Distribution Date" means the date on which Sun
TV makes a final Distribution of Available Cash pursuant to Section 6.1(c) of
this Plan. The Final Distribution Date shall be a date, as determined by Sun TV,
(i) which is after the liquidation into Cash of all assets of Sun TV (other than
those assets abandoned by Sun TV) and collection of other sums due or otherwise
remitted or returned to the Estate, and (ii) on or after which Sun TV makes a
final Distribution from the Disputed Claims Reserve pursuant to Section 7.4 of
this Plan after resolution of all Disputed Claims.
1.1.40 "Final Order" means an order or judgment of the
Bankruptcy Court as to which the time to appeal, petition for certiorari, or
move for reargument or rehearing has expired and as to which no appeal, petition
for certiorari or other proceedings for reargument or rehearing shall then be
pending, PROVIDED, HOWEVER, if an appeal, writ of certiorari, reargument or
rehearing thereof has been filed or sought, such order of the Bankruptcy Court
shall have been affirmed by the highest court to which such order was appealed,
or certiorari shall have been denied or reargument or rehearing shall have been
denied or resulted in no modification of such order, and the time to take any
further appeal, petition for certiorari or move for reargument or rehearing
shall have expired; PROVIDED, FURTHER, that the possibility that a motion under
Rule 59 or Rule 60 of the Federal Rules of Civil Procedure, or any analogous
rule under the Bankruptcy Rules, may be filed with respect to such order shall
not cause such order not to be a Final Order.
1.1.41 "Initial Distribution Date" means the Effective Date or
as soon thereafter as practicable.
1.1.42 "IRS" means the Internal Revenue Service.
1.1.43 "Liabilities" means any and all costs, expenses,
actions, Causes of Action, suits, controversies, damages, claims, liabilities or
demands of any nature, whether known or unknown, foreseen or unforeseen,
existing or hereinafter arising, liquidated or unliquidated, matured or not
matured, contingent or direct, whether arising at common law, in equity, or
under any statute, based in whole or in part on any act or omission or other
occurrence taking place on or prior to the Effective Date.
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1.1.44 "Lien" has the meaning ascribed to such term in section
101(37) of the Bankruptcy Code (but a Lien that has or may be been avoided
pursuant to sections 544, 545, 546, 547, 548 and 549 of the Bankruptcy Code
shall not constitute a Lien).
1.1.45 "Miscellaneous Secured Claims" means all Secured Claims
other than the Security Deposit Claims and Statutory Lien Claims.
1.1.46 "Notice of Effective Date" means a notice,
substantially in the form of Exhibit B to this Plan, to be filed with the
Bankruptcy Court in accordance with Section 10.4 of this Plan.
1.1.47 "Person" shall have the meaning ascribed to such term
in section 101(41) of the Bankruptcy Code.
1.1.48 "Petition Date" means September 16, 1998, the date on
which the Debtors filed their chapter 11 petitions and commenced the Chapter 11
Case.
1.1.49 "Plan" means this chapter 11 plan, as amended, modified
or supplemented from time to time in accordance with the terms hereof.
1.1.50 "Preferred Stock Equity Interest" means the shares of
preferred stock in Sun TV.
1.1.51 "Priority Claim" means a Priority Tax Claim or a
Priority Non-Tax Claim.
1.1.52 "Priority Non-Tax Claim" means any Claim of a kind
specified in sections 507(a)(3), (4), (5), (7) or (9) or deposits to the extent
provided under section 507(a)(6) of the Bankruptcy Code.
1.1.53 "Priority Tax Claim" means any Claim of a governmental
unit of the kind specified in section 507(a)(8) of the Bankruptcy Code.
1.1.54 "Professionals" means the following attorneys,
accountants and other professionals whose retention by the Debtors-in-Possession
or the Creditors' Committee has been approved by an order of the Bankruptcy
Court: Milbank, Tweed, Hadley & McCloy LLP; Porter, Wright, Morris & Arthur;
Kirkland & Ellis; PricewaterhouseCoopers LLP; Business Regeneration Services LLC
(f/k/a Business Turnaround Services or BTS); Young, Conaway, Stargatt & Taylor,
LLP; Otterbourg, Steindler, Houston & Rosen, P.C.; Pepper Hamilton LLP; Ernst &
Young LLP; and KPMG LLP.
1.1.55 "Professional Fees" means a Claim of a Professional,
retained in the Chapter 11 Case, pursuant to sections 327 and 1103 of the
Bankruptcy Code or otherwise, for compensation or reimbursement of costs and
expenses relating to services
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incurred prior to and including the Confirmation Date, when and to the extent
any Claim described above is Allowed by a Final Order entered pursuant to
sections 330, 331, 503(b), or 1103 of the Bankruptcy Code.
1.1.56 "Ratable or Ratable Share" means a number (expressed as
a percentage) equal to the proportion that a Claim bears to the aggregate amount
of Claims in such Class entitled to Distributions from the same source,
including Disputed Claims, as of the date of determination.
1.1.57 "Schedules" means the respective schedules of assets
and liabilities and the statements of financial affairs filed by the Debtors
under section 521 of the Bankruptcy Code and the Official Bankruptcy Forms of
the Bankruptcy Rules, as such schedules and statements have been or may be
supplemented or amended from time to time.
1.1.58 "Secured Claim" means a Claim secured by a Lien on
Collateral to the extent of the value of the Collateral, as determined in
accordance with section 506(a) of the Bankruptcy Code, or as otherwise agreed
upon in writing by the Debtors and the holder of such Claim after notice to the
Creditors' Committee and subject to the approval by a Final Order of the
Bankruptcy Court. To the extent that the value of such interest is less than the
amount of the Claim which has the benefit of such security, such Claim is an
Unsecured Deficiency Claim unless, in any such case, the Class of which such
Claim is a part makes a valid and timely election under section 1111(b) of the
Bankruptcy Code to have such Claim treated as a Secured Claim to the extent
Allowed.
1.1.59 "Security Deposit Claim" means any Secured Claim
against Sun TV secured by a Lien on Cash deposited by Sun TV prior to the
Petition Date to secure the payment for goods or services to be delivered or
furnished to Sun TV prior to the Petition Date.
1.1.60 "Statutory Lien Claim" means any Secured Claim secured
by a valid and enforceable Lien attaching by operation of law in favor of
materialmen, mechanics, warehousemen, carriers, taxing authorities or other
similar Persons.
1.1.61 "Subsequent Distribution" means any Distribution of
Available Cash made to the holders of Allowed Claims on a Subsequent
Distribution Date in accordance with Section 6.1(b) of this Plan.
1.1.62 "Subsequent Distribution Date" means any date, as
determined by Sun TV which is after the Effective Date and prior to the Final
Distribution Date on which a Distribution of Available Cash is made to holders
of Allowed Claims in accordance with Section 6.1(b) of this Plan.
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1.1.63 "Sun TV" means Sun TV and Appliances, Inc., a Delaware
corporation, and its corporate parent, Sun Television and Appliances, Inc.
Unless otherwise expressly stated herein, "Sun TV" shall include references to
Sun TV as Debtors and Debtors-in-Possession.
1.1.64 "Tax Code" means the Internal Revenue Code of 1986, as
amended, and the Treasury Regulations promulgated thereunder.
1.1.65 "United States Trustee" means the Acting United States
Trustee appointed under section 591, title 28, United States Code to serve in
the District of Delaware.
1.1.66 "Unsecured Claim" means any Claim against any of the
Debtors that is not an Administrative Expense Claim, Secured Claim, Priority Tax
Claim, or Priority Non-Tax Claim, and specifically including any Claim asserted
by any Sun TV customer relating to goods or services purchased from Sun TV prior
to the Petition Date.
1.1.67 "Unsecured Deficiency Claim" means, with reference to a
Claim secured by a Lien against Collateral, an amount equal to the difference
between (a) the aggregate amount of such Claim after giving effect to the
operation of section 1111(b)(1)(A) of the Bankruptcy Code and (b) the amount of
such Claim that is a Secured Claim; provided, however, that, in the event that
the Class in which such Secured Claim is classified makes the election under
section 1111(b)(2) of the Bankruptcy Code in accordance with Rule 3014 of the
Bankruptcy Rules, the Unsecured Deficiency Claim otherwise relating to such
Secured Claim shall be extinguished. An Unsecured Deficiency Claim is an
Unsecured Claim.
1.2 OTHER TERMS. A term used in this Plan that is not defined
shall have the meaning ascribed to that term, if any, in the Bankruptcy Code.
1.3 INTERPRETATION; APPLICATION OF DEFINITIONS, RULES OF
CONSTRUCTION AND COMPUTATION OF TIME. Wherever from the context it appears
appropriate, each term stated in either the singular or the plural shall include
both the singular and the plural and pronouns stated in the masculine, feminine
or neuter gender shall include the masculine, feminine and neuter. For purposes
of the Plan (a) any reference in the Plan to a contract, instrument, release,
indenture, or other agreement or document being in a particular form or on
particular terms and conditions means that such document shall be substantially
in such form or substantially on such terms and conditions, (b) any reference in
the Plan to an existing document or exhibit filed or to be filed means such
document or exhibit as it may have been or may be amended, modified, or
supplemented, and (c) unless otherwise specified, all references in the Plan to
Sections, Schedules, and Exhibits are references to Sections, Schedules, and
Exhibits of or to the Plan. The words "herein," "hereof," "hereto," "hereunder,"
and other words of similar meaning refer to this Plan as a whole and not to any
particular section, subsection or clause contained in this Plan. The rules of
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construction contained in section 102 of the Bankruptcy Code shall apply to the
construction of this Plan. The headings in this Plan are for convenience of
reference only and shall not limit or otherwise affect the provisions of this
Plan. Unless otherwise indicated herein, all references to dollars means United
States dollars. In computing any period of time prescribed or allowed by the
Plan, unless otherwise expressly provided, the provisions of Bankruptcy Rule
9006(a) shall apply.
SECTION II
PAYMENT OF ADMINISTRATIVE EXPENSE CLAIMS and PRIORITY TAX
CLAIMS
2.1 ADMINISTRATIVE EXPENSE CLAIMS. Each holder of an Allowed
Administrative Expense Claim shall be paid in Cash, in full, on the Initial
Distribution Date, or in such amounts and on such other terms either as may be
agreed on between such holder and the Debtors, or according to the ordinary
business terms of the Debtors and such holders, in full and complete
satisfaction, settlement, and release of and in exchange for such holder's
Claim. All Entities that are awarded allowance of compensation or reimbursement
of expenses by the Bankruptcy Court under sections 503(b)(2), 503(b)(3),
503(b)(4) or 503(b)(5) of the Bankruptcy Code shall be paid in Cash in full in
such amounts as are Allowed by the Bankruptcy Court (a) on the later of (i) the
Effective Date or (ii) the date that is ten (10) Business Days after an order of
the Bankruptcy Court with respect to any such Allowed Administrative Expense
Claim becomes a Final Order or (b) on such other terms as may be mutually agreed
on between the holder of an Allowed Administrative Expense Claim and the
Debtors.
2.2 PRIORITY TAX CLAIMS. On the Initial Distribution Date,
each holder of an Allowed Priority Tax Claim shall be entitled to receive in
full satisfaction, settlement, and release of and in exchange for such Allowed
Priority Tax Claim (a) deferred Cash payments in an aggregate principal amount
equal to the amount of such Allowed Priority Tax Claim plus interest on the
unpaid portion thereof at the rate of five percent (5%) per annum from the
Effective Date through the date of payment thereof or (b) such other treatment
as to which the Debtors and such holder shall have agreed upon in writing, with
the approval of the Bankruptcy Court, after notice to the Creditors' Committee.
If deferred Cash payments are made to a holder of an Allowed Priority Tax Claim,
payments of principal shall be made in annual installments, each such
installment amount being equal to ten (10%) percent of such Allowed Priority Tax
Claim plus accrued and unpaid interest, with the first payment to be due on the
first anniversary of the Initial Distribution Date, and subsequent payments to
be due on each successive anniversary of the first payment date or as soon
thereafter as is practicable; PROVIDED, HOWEVER, that any installments remaining
unpaid on the date that is six years after the date of assessment of the tax
that is the basis of the Allowed Priority Tax Claim shall be paid on the first
Business Day following such date, together with any accrued and unpaid interest
to the
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date of payment; PROVIDED, FURTHER, that the Debtors reserve the right to pay
any Allowed Priority Tax Claim, or any remaining balance of such Allowed
Priority Tax Claim, in full at any time on or after the Effective Date without
premium or penalty.
SECTION III
CLASSIFICATION AND TREATMENT OF CLAIMS AND
EQUITY INTERESTS
3.1 CLASSIFICATION. Other than Administrative Claims and
Priority Tax Claims, Claims and Equity Interests are classified for all
purposes, including voting, confirmation, and distribution, as follows:
- -------------------------------------------- -----------------------------------
Class 1: Priority Non-Tax Claims Class 1 consists of all Allowed
Priority Non-Tax Claims
- -------------------------------------------- -----------------------------------
Class 2: Secured Claims Class 2 consists of all Allowed
Secured Claims
- -------------------------------------------- -----------------------------------
Subclass 2A: Security Deposit Claims Subclass 2A consists of all Allowed
Security Deposit Claims
- -------------------------------------------- -----------------------------------
Subclass 2B: Statutory Lien Claims Subclass 2B consists of all Allowed
Statutory Lien Claims
- -------------------------------------------- -----------------------------------
Subclass 2C: Miscellaneous Secured Subclass 2C consists of all Allowed
Claims Miscellaneous Secured Claims
- -------------------------------------------- -----------------------------------
Class 3: General Unsecured Claims Class 3 consists of all Allowed
General Unsecured Claims
- -------------------------------------------- -----------------------------------
Class 4: Convenience Claims Class 4 consists of all Allowed
Convenience Claims
- -------------------------------------------- -----------------------------------
Class 5: Preferred Stock Equity Interests Class 5 consists of all Claims and
other rights directly or indirectly
arising from or under or relating
in any way to Allowed Preferred
Stock Equity Interests
- -------------------------------------------- -----------------------------------
Class 6: Common Stock Equity Interests Class 6 consists of all Claims and
other rights directly or indirectly
arising from or under or relating
in any way to Allowed Common Stock
Equity Interests
- -------------------------------------------- -----------------------------------
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3.2 TREATMENT. The Classes of Allowed Claims against Sun TV
shall receive the following treatment:
a. CLASS 1: PRIORITY NON-TAX CLAIMS.
(i) IMPAIRMENT AND VOTING. Class 1 is not impaired by the
Plan. Holders of Claims in Class 1 are not entitled to vote to accept
or reject the Plan.
(ii) TREATMENT. Sun TV shall pay to each holder of an
Allowed Claim in Class 1 Cash from Available Cash in an amount equal
to such Allowed Claim, in full and complete satisfaction, settlement,
and release of and in exchange for such holder's Claim, on the later
of (i) the Initial Distribution Date, and (ii) thirty (30) days after
the date on which such Claim becomes an Allowed Priority Non-Tax
Claim, or as soon as thereafter as is practicable.
b. CLASS 2: SECURED CLAIMS.
(i) IMPAIRMENT AND VOTING. Class 2 is not impaired by the
Plan. Holders of Claims in Class 2 are not entitled to vote to accept
or reject the Plan.
(ii) TREATMENT.
(a) SECURITY DEPOSIT CLAIMS (SUBCLASS 2A). Each
holder of an Allowed Security Deposit Claim shall be entitled
to apply to such Claim the Cash held on deposit by such holder
to secure such Claim and shall transfer to Sun TV all Cash
held in excess of its Allowed Security Deposit Claim, in full
and complete satisfaction, settlement, and release of and in
exchange for such holder's Claim, on the later of (i) the
Initial Distribution Date and (ii) thirty (30) days after the
date on which such Claim becomes an Allowed Security Deposit
Claim, or as soon thereafter as is practicable.
(b) STATUTORY LIEN CLAIMS (SUBCLASS 2B). At Sun TV's
option, Sun TV shall (i) distribute to each holder of an
Allowed Statutory Lien Claim the Collateral securing such
Allowed Statutory Lien Claim; (ii) distribute to each holder
of an Allowed Statutory Lien Claim Cash in an amount, not to
exceed the Allowed amount of such Claim, equal to the proceeds
actually realized from the sale of any Collateral securing
such Claim, less the actual costs and expenses of disposing of
such Collateral; or (iii) provide for such other treatment as
may be agreed upon by Sun TV and the holder of an Allowed
Statutory Lien Claim, in full and complete satisfaction,
settlement, and release of and in exchange for such holder's
Claim, on the later of (x) the Initial Distribution Date, and
(y) thirty (30)
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days after the date on which such Claim becomes an Allowed
Statutory Lien Claim, or as soon thereafter as is practicable.
(c) MISCELLANEOUS SECURED CLAIMS (SUBCLASS 2C). At
Sun TV's option, Sun TV shall (i) distribute to each holder of
an Allowed Miscellaneous Secured Claim the Collateral securing
such Allowed Miscellaneous Secured Claim; (ii) distribute to
each holder of an Allowed Miscellaneous Secured Claim Cash in
an amount, not to exceed the Allowed amount of such Claim,
equal to the proceeds actually realized from the sale of any
Collateral securing such Claim, less the actual costs and
expenses of disposing of such Collateral; or (iii) provide for
such other treatment as may be agreed upon by Sun TV and the
holder of an Allowed Miscellaneous Secured Claim, in full and
complete satisfaction, settlement, and release of and in
exchange for such holder's Claim, on the later of (x) the
Initial Distribution Date, and (y) thirty (30) days after the
date on which such Claim becomes an Allowed Miscellaneous
Secured Claim, or as soon thereafter as is practicable.
(iii) RETENTION OF LIENS. Each holder of an Allowed
Secured Claim in Class 2 shall retain the Liens securing such Allowed
Secured Claim as of the Confirmation Date until Sun TV shall have
made the Distribution to such holder provided for in Section
3.2(b)(ii)(b) of the Plan.
c. CLASS 3: GENERAL UNSECURED CLAIMS.
(i) IMPAIRMENT AND VOTING. Class 3 is impaired by the
Plan. Each holder of an Allowed General Unsecured Claim in Class 3 is
entitled to vote to accept or reject the Plan.
(ii) TREATMENT. After satisfaction in full or reservation
of all Allowed Administrative Claims, Allowed Priority Claims, and
Allowed Claims in Classes 1, 2, and 4 as provided in Sections II and
III of the Plan, and unless otherwise agreed to by Sun TV and the
holder of an Allowed Claim in Class 3, Sun TV shall pay to each
holder of an Allowed Claim in Class 3 its Ratable Share of Available
Cash (not to exceed the amount of its Allowed Claim), in full and
complete satisfaction, settlement, and release of and in exchange for
such holder's Claim, on the later of (i) the Initial Distribution
Date, and (ii) thirty (30) days after the date on which such Claim
becomes an Allowed General Unsecured Claim, or as soon thereafter as
is practicable. If, after the Effective Date, any Cash is available
from, among other things, the liquidation of assets of the Estate,
the prosecution and enforcement of Causes of Action of Sun TV, the
release of funds from the Disputed Claims Reserve, or unclaimed,
undeliverable or time-barred Distributions to holders of Allowed
Claims pursuant to Section VI of the Plan and, in any such case,
becomes Available Cash, then after the satisfaction in full of all
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<PAGE> 49
Allowed Administrative Claims, Allowed Priority Claims and the
treatment provided in the Plan for Allowed Claims in Classes 1 and 2,
each holder of an Allowed Claim in Class 3 will be paid on a
Subsequent Distribution Date, if any, and the Final Distribution Date
its Ratable Share of Available Cash on account of its Allowed General
Unsecured Claim in accordance with Section VI of the Plan, provided
that the aggregate Distributions received pursuant to the Plan do not
exceed the amount of the Allowed Claim.
d. CLASS 4: CONVENIENCE CLAIMS.
(i) IMPAIRMENT AND VOTING. Class 4 is unimpaired by the
Plan. Each holder of an Allowed General Unsecured Claim in Class 4 is
not entitled to vote to accept or reject the Plan.
(ii) TREATMENT. Sun TV shall pay to each holder of an
Allowed Convenience Claim in Class 4 Cash from Available Cash an
amount equal to one hundred percent (100%) of such Allowed
Convenience Claim, in full and complete satisfaction, settlement, and
release of and in exchange for such holder's Claim, on the later of
(i) the Initial Distribution Date, and (ii) thirty (30) days after
the date on which such Claim becomes an Allowed Convenience Claim, or
as soon thereafter as is practicable.
e. CLASS 5: PREFERRED STOCK EQUITY INTERESTS.
(i) IMPAIRMENT AND VOTING. Class 5 is impaired by the
Plan. For purposes of the Plan, each holder of an Allowed Preferred
Stock Equity Interest in Class 5 is conclusively presumed to have
rejected this Plan as a holder of a Class 5 Preferred Stock Equity
Interest and is not entitled to vote to accept or reject the Plan.
(ii) TREATMENT. Preferred Stock Equity Interests are
subordinate to all Claims, and shall receive no Distribution under
the Plan.
f. CLASS 6: COMMON STOCK EQUITY INTERESTS.
(i) IMPAIRMENT AND VOTING. Class 6 is impaired by the
Plan. For purposes of the Plan, each holder of an Allowed Common
Stock Equity Interest in Class 6 is conclusively presumed to have
rejected this Plan as a holder of a Class 6 Common Stock Equity
Interest and is not entitled to vote to accept or reject the Plan.
(ii) TREATMENT. Common Stock Equity Interests are
subordinate to all Claims and Preferred Stock Equity Interests, and
shall receive no Distribution under the Plan.
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<PAGE> 50
SECTION IV
IMPAIRED AND UNIMPAIRED CLASSES OF CLAIMS AND
EQUITY INTERESTS UNDER THE PLAN; ACCEPTANCE OR
REJECTION OF THE PLAN
4.1 HOLDERS OF CLAIMS ENTITLED TO VOTE.
a. Each holder of an Allowed Claim, or the holder of a Claim
that has been temporarily allowed for voting purposes only under Bankruptcy Rule
3018(a), in an impaired Class of Claims against the Debtors, shall be entitled
to vote separately to accept or reject this Plan as provided in the order
entered by the Bankruptcy Court governing the voting and balloting procedures
applicable to the Plan. Any unimpaired Class of Claims shall be deemed to have
accepted the Plan. Any Class of Claims or Equity Interests that will not receive
or retain any property on account of such Claims or Equity Interests shall be
deemed to have rejected the Plan.
b. Class 3 is impaired hereunder and the holders of Allowed
Claims in such Classes are entitled to vote on this Plan. In accordance with
section 1126(g) of the Bankruptcy Code, each of Classes 5 and 6 are conclusively
deemed to have rejected the Plan.
4.2 ACCEPTANCE BY UNIMPAIRED CLASSES. Each of Classes 1, 2,
and 4 is unimpaired under this Plan and is conclusively presumed to have
accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code.
4.3 ELIMINATION OF CLASSES. Any Class of Claims that is not
occupied as of the date of the commencement of the Confirmation Hearing by an
Allowed Claim or a Claim temporarily Allowed under Bankruptcy Rule 3018 shall be
deemed deleted from this Plan for purposes of voting on acceptance or rejection
of this Plan, and for purposes of determining acceptance or rejection of this
Plan by such Class under section 1129(a)(8) of the Bankruptcy Code.
4.4 NON-CONSENSUAL CONFIRMATION. The Debtors will request that
the Bankruptcy Court confirm the Plan in accordance with section 1129(b) of the
Bankruptcy Code in view of the deemed rejection of the Plan by Classes 5 and 6.
In the event that Class 3 fails to accept the Plan, the Debtors reserve their
right (i) to modify the Plan in accordance with Section 14.9 hereof and/or (ii)
to request that the Bankruptcy Court confirm the Plan in accordance with section
1129(b) of the Bankruptcy Code notwithstanding such lack of acceptance by
providing fair and equitable treatment to any impaired Class of Claims and
Equity Interests voting to reject the Plan.`
4.5 REVOCATION OF THE PLAN. Subject to Section 14.10 hereof,
the Debtors reserve the right to revoke and withdraw this Plan at any time prior
to entry of the
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<PAGE> 51
Confirmation Order. If this Plan is so revoked or withdrawn, then it shall be
deemed null and void.
SECTION V
MEANS FOR IMPLEMENTATION AND EXECUTION OF THIS PLAN
5.1 CONTINUING EXISTENCE.
a. From and after the Confirmation Date, Sun TV shall continue
in existence for the purpose of (a) winding up its affairs as expeditiously as
reasonably possible, (b) liquidating, by conversion to Cash or other methods,
any remaining assets of the Estates, as expeditiously as reasonably possible,
(c) enforcing and prosecuting Causes of Action, claims, interests, rights and
privileges of Sun TV, (d) reconciling Claims and resolving Disputed Claims, (e)
administering the Plan, (f) filing appropriate tax returns, and (g) taking such
other action as may be necessary or appropriate to effectuate this Plan. Sun TV
shall have absolute discretion to pursue or not to pursue any and all claims,
rights, or Causes of Action that it retains pursuant to this Plan, as it
determines in the exercise of its business judgment, and shall have no liability
for the outcome of its decision. Sun TV may incur and pay any reasonable and
necessary expenses in performing the foregoing functions.
b. From and after the Confirmation Date, the then current
officers of Sun TV shall continue to serve in their respective capacities
through the earlier of the date Sun TV is dissolved in accordance with Section
5.1(c) of the Plan and the date such officer resigns, is replaced, or is
terminated. From and after the Effective Date, James Moran shall be appointed
the sole director and president of Sun TV and shall serve in such capacities on
the terms set forth in Section 5.5 of the Plan through the earlier of the date
Sun TV is dissolved in accordance with Section 5.1(c) of the Plan and the date
James Moran resigns, is terminated for cause or is unable to serve; PROVIDED,
HOWEVER, that, in the event that James Moran resigns, is terminated or unable to
serve as a director, then an individual to be named by Sun TV and the Creditors'
Committee shall, by operation of the Plan and without need for further
Bankruptcy Court order or corporate action, be appointed the sole director and
president of Sun TV and shall serve in such capacities through the earlier of
the date Sun TV is dissolved in accordance with Section 5.1(c) of the Plan and
the date such individual resigns, is terminated for cause or is unable to serve;
and PROVIDED FURTHER, that, in the event that both James Moran and his successor
resign, are terminated for cause or are unable to serve as a director, then Sun
TV, in consultation with the Creditors' Committee, shall have the right to
select their replacement who shall be appointed the sole director and president
of Sun TV and shall serve in that capacity until Sun TV is dissolved in
accordance with Section 5.1(c) of the Plan.
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<PAGE> 52
c. Upon the Distribution of all assets of the Estates pursuant
to this Plan and the filing by or on behalf of Sun TV of a certification to that
effect with the Bankruptcy Court, Sun TV shall be dissolved for all purposes
effective as of the Final Distribution Date without the necessity for any other
or further actions to be taken by or on behalf of Sun TV or payments to be made
in connection therewith; PROVIDED, HOWEVER, that Sun TV shall file with the
Office of the Secretary of State for the State of Delaware a certificate of
dissolution. Such certificate of dissolution may be executed by an officer of
Sun TV in accordance with Section 14.4 of the Plan without the need for any
action or approval by the shareholders or Board of Directors of Sun TV. From and
after the Effective Date, Sun TV (i) for all purposes shall be deemed to have
withdrawn its business operation from any state in which Sun TV was previously
conducting, or is registered or licensed to conduct, its business operations,
and shall not be required to file any document, pay any sum or take any other
action, in order to effectuate such withdrawal, (ii) shall be deemed to have
cancelled pursuant to this Plan all Equity Interests except one authorized and
issued share of the common stock of Sun TV held by the sole director of Sun TV,
and (iii) shall not be liable in any manner to any taxing authority for
franchise, business, license or similar taxes accruing on or after the Effective
Date.
5.2 FUNDING FOR THIS PLAN. This Plan shall be funded by (i)
Available Cash on the Effective Date and (ii) funds available after the
Effective Date from, among other things, the liquidation of Sun TV's remaining
assets, the prosecution and enforcement of Causes of Action, and any release of
funds from the Disputed Claims Reserve after the Effective Date.
5.3 ACCOUNTS. Sun TV may establish one or more
interest-bearing accounts as it determines may be necessary or appropriate to
effectuate the provisions of this Plan consistent with section 345 of the
Bankruptcy Code and any orders of the Bankruptcy Court.
5.4 CLOSING OF THE CHAPTER 11 CASE. When all Disputed Claims
filed against Sun TV have become Allowed Claims or have been disallowed by Final
Order, and all remaining assets of Sun TV have been liquidated and converted
into Cash (other than those assets abandoned by Sun TV), and such Cash has been
distributed in accordance with this Plan, or at such earlier time as Sun TV
deems appropriate, Sun TV shall seek authority from the Bankruptcy Court to
close the Chapter 11 Case in accordance with the Bankruptcy Code and the
Bankruptcy Rules.
5.5 ENGAGEMENT OF DEBTOR OFFICER. On and after the Effective
Date, Sun TV shall engage James Moran as its President, on terms and conditions
substantially similar to the employment arrangement with Sun TV in effect on the
Effective Date, for a period of not less than six months following the Effective
Date to assist Sun TV in the performance of its duties and obligations under the
Plan. James Moran may not be involuntarily terminated other than for cause prior
to the one-hundred-eightieth (180th)
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day following the Effective Date, and then only with prior Bankruptcy Court
approval after notice and a hearing.
SECTION VI
PROVISIONS GOVERNING DISTRIBUTIONS
6.1 DISTRIBUTIONS.
a. INITIAL DISTRIBUTION DATE PAYMENTS. On the Initial
Distribution Date, Sun TV shall distribute all Available Cash to the holders of
Allowed Administrative Claims, Allowed Priority Claims and Allowed Claims in
Classes 1, 2, 3, and 4 as provided in Section III of the Plan and/or distribute
the proceeds of Collateral, or deliver the Collateral to the holders of Allowed
Claims in Class 2 pursuant to Section III of the Plan; PROVIDED, HOWEVER, that
in no event shall Sun TV be obligated to make a Distribution to the holders of
Claims in Class 3 if the amount of Available Cash then on hand is $1 million or
less or such Distribution of Available Cash would result in less than a one
percent (1%) Distribution to any holder of an Allowed Claim in Class 3.
Distributions to any holder of an Allowed Claim shall be allocated first to the
principal portion of such Allowed Claim, and, only after satisfaction in full of
the principal portion of such Allowed Claim, if any, to any portion of such
Allowed Claim comprising interest (but solely to the extent that such interest
is an allowable Claim pursuant to this Plan or otherwise). All payments shall be
made in accordance with the priorities established by the Bankruptcy Code.
b. DISTRIBUTIONS ON A SUBSEQUENT DISTRIBUTION DATE. Except as
otherwise provided in this Plan, to the extent there is Available Cash
subsequent to the Effective Date from, among other things, (i) the liquidation
and conversion to Cash of assets of Sun TV, (ii) the prosecution and enforcement
of Causes of Action (including Avoidance Actions), (iii) the release of funds
from the Disputed Claims Reserve in accordance with Section 7.7 of this Plan,
and (iv) the return of unclaimed, undeliverable or time-barred Distributions to
holders of Allowed Claims pursuant to Section VI of this Plan, on a Subsequent
Distribution Date, Sun TV shall distribute to each holder of a Claim that was
Allowed on the Effective Date or subsequently became Allowed on or before the
Subsequent Distribution Date Available Cash in an amount necessary to cause such
holder to have received an aggregate Distribution of Cash in respect of such
Allowed Claim equal to the Distribution that such holder would have received in
respect of such Allowed Claim on the Effective Date if (x) such Available Cash
had been available for Distribution on the Effective Date, (y) such Allowed
Claim had been Allowed on the Effective Date in the amount in which it is
Allowed on the Subsequent Distribution Date, and (z) Claims or portions thereof
that were disallowed subsequent to the Effective Date and on or before the
Subsequent Distribution Date had been disallowed on the Effective Date;
PROVIDED, HOWEVER, that in no event shall Sun TV be
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obligated to make a Subsequent Distribution to the holders of Claims in Class 3
if the amount of Available Cash then on hand is $1 million or less or such
Distribution of Available Cash would result in less than a one percent (1%)
Distribution to any holder of an Allowed Claim entitled thereto; PROVIDED
FURTHER, HOWEVER, that in no event shall the foregoing impair the right of Sun
TV under Section 7.7 of this Plan to use excess funds in the Disputed Claims
Reserve to satisfy the costs of administering this Plan.
c. DISTRIBUTIONS ON THE FINAL DISTRIBUTION DATE. Unless
otherwise provided in this Plan, to the extent there is Available Cash
subsequent to the Effective Date from, among other things, (i) the liquidation
and conversion to Cash of assets of Sun TV, (ii) the prosecution and enforcement
of Causes of Action (including Avoidance Actions), (iii) the release of funds
from the Disputed Claims Reserve in accordance with Section 7.7 of this Plan, or
(iv) the return of unclaimed, undeliverable or time-barred Distributions to
holders of Allowed Claims pursuant to Sections 6.3 and 6.5 of this Plan, Sun TV
shall, on the Final Distribution Date, distribute all such Available Cash to
each holder of a Claim that was Allowed on the Effective Date, or subsequently
became Allowed on or before the Final Distribution Date in an amount necessary
to cause such holder to receive aggregate Distributions of Cash in respect of
such Allowed Claim equal to the Distribution that such holder would have
received in respect of such Allowed Claim on the Effective Date if (x) such
Available Cash had been available for Distribution on the Effective Date, (y)
such Allowed Claim had been Allowed on the Effective Date in the amount in which
it is Allowed on the Final Distribution Date, and (z) Claims or portions thereof
that were disallowed subsequent to the Effective Date and on or before the Final
Distribution Date had been disallowed on the Effective Date; PROVIDED, HOWEVER,
that in no event shall Sun TV be obligated to make such a Distribution if, in
the discretion of Sun TV, there is insufficient Available Cash to make a
cost-efficient Distribution, taking into account the size of the Distribution to
be made and the number of recipients of such Distribution, in which event such
Available Cash shall either be paid into the Bankruptcy Court and disposed of
under chapter 129 of title 28 of the United States Code or be donated to a
reputable charitable organization, if permitted by applicable law; PROVIDED
FURTHER, HOWEVER, that in no event shall the foregoing impair the right of Sun
TV under Section 7.7 of this Plan to use excess funds in the Disputed Claims
Reserve to satisfy the costs of administering the Plan.
6.2 DISTRIBUTIONS OF CASH. At the option of Sun TV, any
Distribution payable by Sun TV pursuant to this Plan shall be made by a check
drawn on a domestic bank or by wire transfer.
6.3 DELIVERY OF DISTRIBUTIONS AND UNDELIVERABLE DISTRIBUTIONS.
Distributions to holders of Allowed Claims shall be made at the address of each
such holder as set forth on the Schedules filed with the Bankruptcy Court unless
superseded by the address as set forth on the proofs of Claim filed by such
holders or by a written notice to the Claims Agent providing actual knowledge to
the Claims Agent of a change of
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address. If any holder's Distribution is returned as undeliverable, no further
Distributions to such holder shall be made unless and until the Claims Agent is
notified in writing of such holder's then current address, at which time all
Distributions shall be made to such holder, without interest. All Claims for
undeliverable Distributions shall be made on or before the earlier of (i) with
respect to the initial Distributions made on or after the Effective Date, one
hundred and twenty (120) days after the date such undeliverable Distribution was
initially made, or (ii) with respect to the Distributions made on a Subsequent
Distribution Date, ninety (90) days after the date such undeliverable
Distribution was initially made, or (iii) with respect to any Distribution, the
thirtieth (30th) day prior to the Final Distribution Date. If any Claim for an
undeliverable Distribution is not timely made as provided in the foregoing
sentence, such Claim shall be forever barred. After such date (as applicable),
all unclaimed property shall be applied first to satisfy the costs of
administering the Plan, then to Available Cash for Distribution in accordance
with the Plan, and the holder of any such Claim shall not be entitled to any
other or further Distribution under the Plan on account of such undeliverable
Distribution or such Claim, unless the holder of such Claim moves the Bankruptcy
Court, on notice to Sun TV and the Creditors' Committee, to reinstate such
Claim, which motion shall be granted provided that (i) Available Cash remains
from which such Distributions on account of such Claim could be made and (ii)
such motion is filed and served by no later than the thirtieth (30th) day prior
to the Final Distribution Date. On the first anniversary of the Effective Date
and on the earlier of the second anniversary of the Effective Date or the Final
Distribution Date, or as soon thereafter as is practicable, Sun TV shall file
with the Bankruptcy Court a list identifying all undeliverable Distributions as
to which Claims first became barred, pursuant to the provisions of this Section
6.3, during the year preceding the filing of such list.
6.4 WITHHOLDING AND REPORTING REQUIREMENTS. In connection with
the Plan and any instruments issued in connection therewith, Sun TV shall comply
with all applicable withholding and reporting requirements imposed by any
federal, state or local taxing authority, and all Distributions under this Plan
shall be subject to any such withholding or reporting requirements.
6.5 TIME BAR TO CASH PAYMENTS. Checks issued by Sun TV or the
Disbursing Agent in respect of Allowed Claims shall be null and void if not
negotiated within sixty (60) days after the date of issuance thereof. Requests
for reissuance of any check shall be made to Sun TV, in accordance with the
notice provisions of Section 14.12 of this Plan, by the holder of the Allowed
Claim to whom such check originally was issued, on or before the earlier of (i)
thirty (30) days after the expiration of the sixty day period following the date
of issuance of such check and (ii) the thirtieth (30th) day prior to the Final
Distribution Date. After such date (as applicable), all funds held on account of
such voided check shall be applied first to satisfy the costs of administering
and fully consummating this Plan, then to Available Cash for Distribution in
accordance with this
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Plan, and the holder of any such Claim shall not be entitled to any other or
further Distribution under this Plan on account of such voided check or such
Claim.
6.6 SETOFFS. In accordance with section 553 of the Bankruptcy
Code and applicable non-bankruptcy law, Sun TV may setoff against or recoup from
any Allowed Claim and the Distributions to be made pursuant to the Plan on
account of such Claim (before any Distribution is made on account of such
Claim), the claims, rights and Causes of Action of any nature that Sun TV may
hold against the holder of such Allowed Claim, including, without, limitation,
any rights of Sun TV pursuant to Section 502(d) of the Bankruptcy Code,
PROVIDED, HOWEVER, that neither the failure to effect such a setoff or assert a
recoupment nor the allowance of any Claim hereunder shall constitute a waiver or
release by Sun TV of any such claims, rights and Causes of Action that Sun TV
may possess against such holder, and PROVIDED FURTHER, HOWEVER, that any claim
of Sun TV arising before the Petition Date shall first be setoff against Claims
against Sun TV arising before the Petition Date. Sun TV shall send a notice of
setoff to each holder of an Allowed Claim against whom it effects a setoff.
6.7 PROFESSIONAL FEES AND EXPENSES. Each Professional
requesting compensation in the Chapter 11 Case shall file an application for an
allowance of final compensation and reimbursement of expenses in the Chapter 11
Case incurred through the Confirmation Date on or before a date to be set by the
Bankruptcy Court in the Confirmation Order. Objections to any such application
shall be filed on or before a date to be set by the Bankruptcy Court in the
Confirmation Order.
6.8 TRANSACTIONS ON BUSINESS DAYS. If the Effective Date or
any other date on which a transaction or act may occur under this Plan shall
occur on a day that is not a Business Day, the transaction or act contemplated
by this Plan to occur on such day shall instead occur on the next succeeding
Business Day.
6.9 MINIMUM DISTRIBUTIONS. If a Distribution to be made to a
given holder of an Allowed Claim other than an Allowed Convenience Claim on the
Initial Distribution Date or any Subsequent Distribution Date, including the
Final Distribution Date, would be Fifty Dollars ($50.00) or less in the
aggregate, notwithstanding any contrary provision of this Plan, no such
Distribution will be made to such holder unless a request therefor is made in
writing to Sun TV. Any Distributions withheld pursuant to this Section 6.9 will
become Available Cash for Distribution in accordance with this Plan.
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SECTION VII
PROCEDURES FOR RESOLVING AND TREATING DISPUTED CLAIMS
7.1 NO DISTRIBUTION PENDING ALLOWANCE. Notwithstanding any
other provision of this Plan, no Cash or other property shall be distributed
under this Plan on account of any Disputed Claim, unless and until such Claim
becomes an Allowed Claim.
7.2 RESOLUTION OF DISPUTED CLAIMS. Unless otherwise ordered by
the Bankruptcy Court after notice and a hearing, Sun TV shall have the exclusive
right (except as to applications for allowances of compensation and
reimbursement of expenses under sections 330 and 503 of the Bankruptcy Code) to
make and file objections to Claims. Sun TV shall serve a copy of each objection
upon the holder of the Claim to which the object is made as soon as practicable,
but in no event later than one hundred and eighty (180) days after the Effective
Date; PROVIDED, HOWEVER, that such one hundred and eighty (180) day period may
be extended by the Bankruptcy Court at the request of Sun TV. Any Claim, other
than a Claim for Professional Fees, that is not an Allowed Claim shall be
determined, resolved, or adjudicated in accordance with the Claims Objection
Procedures Order, which after the Effective Date shall apply MUTATIS MUTANDI,
with Sun TV succeeding to the rights and responsibilities of the Debtors
thereunder. Prior to the Effective Date, the filing, litigation, settlement, or
withdrawal of all objections shall be the responsibility of the Debtors.
7.3 ESTIMATION. Sun TV may, at any time, request that the
Bankruptcy Court estimate any Disputed Claim pursuant to section 502(c) of the
Bankruptcy Code regardless of whether Sun TV has previously objected to such
Claim. The Bankruptcy Court will retain jurisdiction to estimate any Claim at
any time. In the event that the Bankruptcy Court estimates any Disputed Claim,
that estimated amount may constitute either the Allowed Amount of such Claim,
the amount that shall be reserved for the Claim for purposes of calculating the
Disputed Claims Reserve, or a maximum limitation on such Claim, as determined by
the Bankruptcy Court. If the estimated amount constitutes a maximum limitation
on such Claim, Sun TV may elect to pursue any supplemental proceedings to object
to any ultimate payment of such Claim. All of the aforementioned Claims
objection, estimation, and resolution procedures are cumulative and not
necessarily exclusive of one another. On and after the Confirmation Date, Claims
which have been estimated may subsequently be compromised, settled, withdrawn or
otherwise resolved as provided in Section 7.2 of this Plan.
7.4 RESERVE ACCOUNTS FOR DISPUTED CLAIMS. On and after the
date on which Sun TV makes its Initial Distribution and any Subsequent
Distribution to holders of Allowed Claims pursuant to Section VI of the Plan,
Sun TV shall hold in one or more Disputed Claims Reserves, Cash in an aggregate
amount sufficient to pay each holder of a Disputed Claim (i) in the amount of
Cash that such holder would have been entitled to receive under this Plan if
such Claim had been an Allowed Claim on the Initial
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Distribution Date or the Subsequent Distribution Date or (ii) such lesser amount
as the Bankruptcy Court may estimate pursuant to Section 7.3 of this Plan or may
otherwise order. Cash withheld and reserved for payments to holders of Disputed
Claims shall be held and deposited by Sun TV in one or more segregated
interest-bearing reserve accounts, as determined by Sun TV, to be used to
satisfy such Claims if and when such Disputed Claims become Allowed Claims.
7.5 INVESTMENT OF DISPUTED CLAIMS RESERVE. Sun TV shall be
permitted, from time to time, in its sole discretion, to invest all or a portion
of the Cash in the Disputed Claims Reserve in United States Treasury Bills (or
in a fund that invests substantially all of its assets in United States Treasury
securities), interest-bearing certificates of deposit, tax exempt securities or
investments permitted by section 345 of the Bankruptcy Code or otherwise
authorized by the Bankruptcy Court, using prudent efforts to enhance the rates
of interest earned on such Cash without inordinate credit risk or interest rate
risk. All interest earned on such Cash shall be held in the Disputed Claims
Reserve and, after satisfaction of any expenses incurred in connection with the
maintenance of the Disputed Claims Reserve, including taxes payable on such
interest income, if any, shall be transferred out of the Disputed Claims Reserve
and shall be applied first to satisfy the costs of administering and fully
consummating this Plan, then to Available Cash for Distribution in accordance
with the Plan.
7.6 ALLOWANCE OF DISPUTED CLAIMS. If, on or after the
Effective Date, any Disputed Claim becomes an Allowed Claim, Sun TV shall,
thirty (30) days after the date on which the Claim becomes an Allowed Claim, or
as soon thereafter as is practicable, distribute from the Disputed Claims
Reserve to the holder of such Allowed Claim the amount of Cash that such holder
would have been entitled to receive under this Plan if such Claim had been an
Allowed Claim on the Effective Date, which shall not exceed the amount of Cash
reserved on account of such Claim.
7.7 RELEASE OF FUNDS FROM DISPUTED CLAIMS RESERVE. If at any
time or from time to time after the Effective Date, there shall be Cash in the
Disputed Claims Reserve in an amount in excess of the amount which Sun TV is
required at such time to reserve on account of Disputed Claims (including
accrued interest) under this Plan or pursuant to any Order of the Bankruptcy
Court, such excess funds shall become available to Sun TV generally and shall be
applied first to satisfy the cost of administering and fully consummating this
Plan, then to Available Cash for Distribution in accordance with this Plan.
7.8 LATE CLAIMS. Except as otherwise expressly provided in
this Plan, any Claim not deemed filed pursuant to Section 1111(a) of the
Bankruptcy Code or timely filed pursuant to the Bankruptcy Code, Bankruptcy
Rules or any applicable order of the Bankruptcy Court, shall (a) not be treated
as an Allowed Claim and (b) be expunged from the Claims register in the Chapter
11 Case without need for any further notice, motion, or order.
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SECTION VIII
EXECUTORY CONTRACTS AND UNEXPIRED LEASES UNDER THIS PLAN
8.1 ALL EXECUTORY CONTRACTS AND UNEXPIRED LEASES REJECTED
IF NOT LISTED ON ASSUMPTION SCHEDULE. Except as otherwise provided herein or
pursuant to a Final Order of the Bankruptcy Court approving the assumption of
any executory contract or unexpired lease, effective as of the Effective Date,
all executory contracts and unexpired leases of the Debtors not specifically
listed on the Assumption Schedule shall be deemed to be automatically rejected
as of the Confirmation Date. The Confirmation Order shall constitute an order of
the Bankruptcy Court approving such rejections pursuant to section 365(a) of the
Bankruptcy Code as of the Confirmation Date.
8.2 ASSUMED EXECUTORY CONTRACTS AND UNEXPIRED LEASES. All
executory contracts and unexpired leases of the Debtors specifically listed on
the Assumption Schedule shall be deemed automatically assumed by the Debtor that
is a party thereto upon the Effective Date. The Confirmation Order shall
constitute an order of the Bankruptcy Court approving such assumptions pursuant
to section 365(a) of the Bankruptcy Code. Subject to the last sentence of this
Section 8.2, the Debtors may at any time on or before the Confirmation Date
amend the Assumption Schedule to delete therefrom or add thereto any executory
contract or unexpired lease, in which event such executory contract or unexpired
lease shall be deemed to be rejected or assumed, respectively, as of the
Effective Date. The Debtors shall provide notice of any amendments to the
Assumption Schedule to the parties to the executory contracts or unexpired
leases affected thereby, counsel to the Creditors' Committee, and to parties who
have requested notice pursuant to Bankruptcy Rule 2002. The fact that any
contract or lease is listed on the Assumption Schedule shall not constitute or
be construed to constitute an admission that such contract or lease is an
executory contract or unexpired lease within the meaning of section 365 of the
Bankruptcy Code or that the Debtors or any successor in interest to the Debtors
has any liability thereunder. Each assumed executory contract and unexpired
lease of the Debtors that relates to the use or occupancy of real property shall
include (a) all modifications, amendments, supplements, restatements, or other
agreements made directly or indirectly by any agreement, instrument, or other
document that in any manner affects such executory contract or unexpired lease
and (b) all executory contracts or unexpired leases appurtenant to the premises,
including all easements, licenses, permits, rights, privileges, immunities,
options, rights of first refusal, powers, uses, usufructs, reciprocal easement
agreements, vaults, tunnel or bridge agreements, or franchises, and any other
interests in real estate or rights IN REM related to such premises, unless any
of the foregoing agreements has been rejected pursuant to a Final Order of the
Bankruptcy Court.
8.3 PAYMENTS RELATED TO ASSUMPTION OF EXECUTORY CONTRACTS
AND UNEXPIRED LEASES. Any monetary amounts by which each executory contract and
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unexpired lease to be assumed under the Plan may be in default shall be
satisfied by Cure, under section 365(b)(1) of the Bankruptcy Code. In the event
of a dispute regarding (i) the nature or the amount of any Cure, (ii) the
ability of Debtors to provide "adequate assurance of future performance" (within
the meaning of section 365 of the Bankruptcy Code) under the contract or lease
to be assumed, or (iii) any other matter pertaining to assumption, Cure shall
occur following the entry of a Final Order resolving the dispute.
8.4 BAR DATE FOR REJECTION DAMAGES. If the rejection by the
Debtors pursuant to the Plan of an executory contract or unexpired lease results
in a Claim, then such Claim shall be released and barred forever and shall not
be enforceable against the Debtors or any of their property unless a proof of
Claim is filed with the clerk of the Bankruptcy Court and served upon, as the
case may be, counsel to the Debtors and counsel to the Creditors' Committee
within thirty (30) days after the earlier to occur of (a) the Confirmation Date
and (b) the entry of an order by the Bankruptcy Court authorizing rejection of a
particular executory contract or lease.
8.5 RETIREE BENEFITS. Sun TV has no retiree benefit plans,
fund or programs, as defined in section 1114 of the Bankruptcy Code, for the
purpose of providing or reimbursing payments for retired employees and their
spouses and dependents for medical, surgical, or hospital care benefits, or
benefits in the event of sickness, accident, disability, or death under any
plan, fund, or program (through the purchase of insurance or otherwise).
Accordingly, no such payments will be made.
SECTION IX
SUBSTANTIVE CONSOLIDATION
The Plan contemplates and is predicated upon substantive
consolidation of Sun TV into a single entity solely for purposes of all actions
associated with confirmation and consummation of the Plan. Pursuant to the
Confirmation Order, subject to the occurrence of the Effective Date: (i) all
intercompany Claims by and among Sun TV shall be eliminated; (ii) all assets and
liabilities of Sun TV shall be merged or treated as though they were merged;
(iii) any obligation of Sun TV and all guarantees thereof executed by Sun TV
shall be deemed to be one obligation of the consolidated Debtors; (iv) any
Claims filed or to be filed in connection with any such obligation and such
guarantees shall be deemed one Claim against Sun TV; and (v) each and every
Claim filed in the Chapter 11 Case shall be deemed a single obligation of all of
Sun TV under the Plan on and after the Effective Date. On the Effective Date,
and in accordance with the terms of the Plan and the consolidation of the assets
and liabilities of Sun TV, all Claims based upon guarantees of collection,
payment or performance made by Sun TV as to the obligations of Sun TV or of any
other Person shall be released and of no further
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force and effect; PROVIDED, HOWEVER, that nothing herein shall affect the
obligations of Sun TV under the Plan.
SECTION X
CONDITIONS PRECEDENT TO CONFIRMATION DATE
AND EFFECTIVE DATE OF PLAN
10.1 CONDITIONS TO CONFIRMATION DATE OF THE PLAN. The
following are conditions precedent to the occurrence of the Confirmation Date of
the Plan that must be satisfied unless waived in accordance with Section 10.3 of
the Plan:
a. ENTRY OF THE CONFIRMATION ORDER. The Confirmation Order
shall be in form and substance reasonably acceptable to the Debtors and
shall, among other things:
(i) decree that the Confirmation Order shall supersede any
Bankruptcy Court orders issued prior to the
Confirmation Date that may be inconsistent with the
Confirmation Order;
(ii) decree that all transfers of assets of the Debtors
contemplated under this Plan shall be free and clear
of all Claims, all Liens, and all encumbrances against
such assets;
(iii) authorize the implementation of this Plan in
accordance with its terms;
(iv) provide that any transfers effected under this Plan
shall be and are exempt from any state, city, or other
municipality transfer taxes, mortgage recording taxes,
and any other stamp or similar tax under section
1146(c) of the Bankruptcy Code;
(v) approve the other settlements, transactions, and
agreements to be effected pursuant to this Plan in all
respects;
(vi) provide that any and all executory contracts or
unexpired leases assumed by the Debtors during the
Chapter 11 Case or under the Plan shall remain in full
force and effect for the benefit of Sun TV
notwithstanding any provision in such contract or
lease (including those described in sections 365(b)(2)
and (f) of the Bankruptcy Code) that prohibits such
assignment or transfer or that enables or requires
termination of such contract or lease;
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(vii) determine that any objection, not previously withdrawn
or settled, to the adequacy of the information
contained in the Disclosure Statement is overruled,
and the information contained in the Disclosure
Statement was adequate for the purpose of soliciting
Ballots for Confirmation of the Plan;
(viii) find that the Plan complies with all applicable
provisions of the Bankruptcy Code, including that the
Plan was proposed in good faith and that the
Confirmation Order was not procured by fraud;
(ix) except as expressly provided in this Plan, provide
that all Equity Interests shall be extinguished and
canceled effective upon the Effective Date; and
(x) determine that the substantive consolidation of the
Debtors as provided in the Plan is approved and
authorized, and such substantive consolidation is in
the best interests of the Estates.
b. FINALITY OF ORDER APPROVING DISCLOSURE STATEMENT. The order
of the Bankruptcy Court, among other things, approving the Disclosure
Statement shall have been entered and be a Final Order.
10.2 CONDITIONS TO THE EFFECTIVE DATE OF THE PLAN. The
following are conditions precedent to the filing of the Notice of Effective Date
pursuant to Section 10.4 of this Plan and the occurrence of the Effective Date
of this Plan:
a. The Bankruptcy Court shall have entered the Confirmation
Order, in form and substance satisfactory to Sun TV and the Creditors'
Committee;
b. No stay of the Confirmation Order shall be in effect at the
time the other conditions set forth in this Section 10.2 are satisfied
or, if permitted, waived;
c. All documents, instruments, and agreements, in form and
substance satisfactory to Sun TV, provided for under or necessary to
implement this Plan shall have been executed and delivered by the
parties thereto, unless such execution or delivery has been waived by
the party benefited thereby; and
d. Either (i) all real and personal property of Sun TV shall
have been liquidated into Cash or disposed of by Sun TV or (ii) there
shall exist sufficient Available Cash to pay all Administrative Claim
and Priority Claims which are Allowed Claims.
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10.3 WAIVER OF CONDITIONS. Sun TV may waive the conditions to
effectiveness of this Plan set forth in Section 10.2 of this Plan.
10.4 NOTICE OF EFFECTIVE DATE. On the first Business Day after
the Confirmation Date on which all conditions to effectiveness of this Plan are
satisfied or waived as provided in this Section 10, or as soon thereafter as is
reasonably practicable, Sun TV shall file with the Bankruptcy Court a Notice of
Effective Date, substantially in the form of Exhibit B to this Plan, which
notice shall constitute appropriate and adequate notice that this Plan has
become effective; PROVIDED HOWEVER, that Sun TV shall have no obligation to
notify any Person other than the Creditors' Committee of such fact. The Plan
shall be deemed to be effective as of 12:01 a.m., Eastern time, on the date of
such filing. A courtesy copy of the Notice of Effective Date may be, but shall
not be required to be, sent by first class mail, postage prepaid (or, at Sun
TV's option, by courier or facsimile) to those Persons who have filed with the
Bankruptcy Court requests for notices pursuant to Bankruptcy Rule 2002.
SECTION XI
EFFECTS OF PLAN CONFIRMATION
11.1 BINDING EFFECT. Except as otherwise provided in section
1141(d) of the Bankruptcy Code, on and after the Confirmation Date, the
provisions of the Plan shall bind any holder of a Claim against, or Equity
Interest in, Sun TV and its respective successors and assigns, whether or not
the Claim or Equity Interest of such holder is impaired under the Plan and
whether or not such holder has accepted the Plan.
11.2 TERM OF INJUNCTIONS OR STAYS. Unless otherwise provided,
all injunctions or stays provided for in the Chapter 11 Case pursuant to section
105 or 362 of the Bankruptcy Code, or otherwise, and in existence on the
Confirmation Date, shall remain in full force and effect until the Effective
Date.
11.3 PRESERVATION OF CAUSES OF ACTION; DEFENSES. Except as
otherwise provided in the Plan, in accordance with section 1123(b) of the
Bankruptcy Code, Sun TV shall retain and may enforce any Avoidance Actions or
other Causes of Action, or rights to payment of claims, that belong to or could
have been raised by or on behalf of the Debtors or Debtors-in-Possession or
their respective Estates, other than any such actions that were commenced on or
before the Effective Date and Sun TV shall retain and may enforce such claims,
rights and Causes of Action that are property of the Debtors or their Estates,
and Sun TV shall retain and may enforce all defenses and counterclaims to all
Claims asserted against the Debtors or their Estates, including, but not limited
to, setoff, recoupment and any rights under section 502(d) of the Bankruptcy
Code.
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SECTION XII
RELEASES
12.1 RELEASE OF THE DEBTORS. Except as otherwise specifically
provided for by this Plan, any Person accepting any Distribution pursuant to
this Plan shall be presumed conclusively to have released the Debtors from any
Cause of Action based on, arising from, or in any way connected with the same
subject matter as the Claim or Equity Interest on which the Distribution is
received. The release described in the preceding sentence shall be enforceable
as a matter of contract law against any Person that accepts any Distribution
pursuant to this Plan.
12.2 RELEASES OF OFFICERS, DIRECTORS, EMPLOYEES, AND
PROFESSIONALS. As of the Effective Date, the Debtors and the Creditors'
Committee release and are permanently enjoined from any prosecution or attempted
prosecution of any and all Causes of Action which they have, may have or claim
to have against (i) any present or former director, officer or employee of the
Debtors and (ii) the Professionals; PROVIDED, HOWEVER, that the foregoing shall
not operate as a waiver of or release from any Causes of Action arising out of
any express contractual obligation owing by any such director, officer or
employee to the Debtors or any reimbursement obligation of any such director,
officer or employee with respect to a loan or advance made by the Debtors to
such director, officer or employee.
SECTION XIII
RETENTION OF JURISDICTION
13.1 JURISDICTION OF BANKRUPTCY COURT. The Bankruptcy Court
shall retain exclusive jurisdiction of all matters arising under, arising out
of, or related to, the Chapter 11 Case and this Plan pursuant to, and for the
purposes of, sections 105(a) and 1142 of the Bankruptcy Code and for, among
other things, the following purposes:
a. To hear and determine any motions for the assumption or
rejection of executory contracts or unexpired leases, and the allowance
of any Claims resulting therefrom;
b. To hear and determine any and all adversary proceedings,
applications, and contested matters whether commenced on or after the
Effective Date;
c. To hear and determine any and all Avoidance Actions whether
commenced on or after the Effective Date;
d. To hear and determine objections to Claims;
29
<PAGE> 65
e. To enter and implement such orders as may be appropriate in
the event the Confirmation Order is for any reason stayed, revoked,
modified or vacated;
f. To issue such orders in aid of execution of this Plan to
the extent authorized by section 1142 of the Bankruptcy Code;
g. To consider any modifications of this Plan, to cure any
defect or omission, or reconcile any inconsistency in any order of the
Bankruptcy Court, including, without limitation, the Confirmation
Order;
h. To hear and determine all applications for compensation and
reimbursement of expenses of professionals under sections 330, 331 and
503(b) of the Bankruptcy Code;
i. To hear and determine disputes arising in connection with
the interpretation, implementation or enforcement of this Plan;
j. To recover all assets of Sun TV and property of the Estate,
wherever located;
k. To hear and determine matters concerning state, local, and
federal taxes in accordance with sections 346, 505 and 1146 of the
Bankruptcy Code (including any requests for expedited determinations
under section 505(b) of the Bankruptcy Code filed, or to be filed, with
respect to tax returns for any and all taxable periods ending after the
Petition Date through, and including, the Final Distribution Date);
l. To hear any other matter consistent with the provisions of
the Bankruptcy Code; and
m. To enter a final decree closing the Chapter 11 Case.
SECTION XIV
MISCELLANEOUS PROVISIONS
14.1 DELETION OF CLASSES AND SUBCLASSES. Any Class or subclass
that does not contain as an element thereof an Allowed Claim or a Claim
temporarily allowed under Bankruptcy Rule 3018 as of the date of the
commencement of the Confirmation Hearing shall be deemed deleted from this Plan
for purposes of voting to accept or reject this Plan and for purposes of
determining acceptance or rejection of this Plan by such Class or subclass under
section 1129(a)(8) of the Bankruptcy Code.
30
<PAGE> 66
14.2 ADDITION OF SUBCLASSES. In the event that any subclass of
Class 2 (Secured Claims) would contain as elements thereof two or more Secured
Claims Collateralized by different properties or interests in property or
Collateralized by Liens against the same property or interest in property having
different priority, that subclass shall be deemed divided into separate
subclasses of Class 2 (Secured Claims).
14.3 DISSOLUTION OF THE CREDITORS' COMMITTEE. On the Final
Distribution Date, the Creditors' Committee shall be dissolved and the members
thereof shall be released from all authority, duties, responsibilities, and
obligations related to and arising from and in connection with the Chapter 11
Case, and the retention or employment of the Creditors' Committee's attorneys,
accountants, and other agents, shall terminate.
14.4 EFFECTUATING DOCUMENTS AND FURTHER TRANSACTIONS. Upon
entry of the Confirmation Order, the President of Sun TV, and any other officer
of Sun TV designated by the same, shall be authorized to execute, deliver, file,
or record such contracts, instruments, releases and other agreements or
documents and take such actions on behalf of Sun TV as may be necessary or
appropriate to effectuate and further evidence the provisions of this Plan,
without any further action by or approval of the shareholders or Board of
Directors of Sun TV.
14.5 EXEMPTION FROM TRANSFER TAXES. Pursuant to section
1146(c) of the Bankruptcy Code, the assignment or surrender of any lease or
sublease, or the delivery of any deed or other instrument of transfer under, in
furtherance of, or in connection with this Plan, whether arising prior or
subsequent to the Confirmation Date, including any deeds, bills of sale or
assignments executed in connection with any disposition of assets contemplated
by this Plan shall not be subject to any stamp, real estate transfer, mortgage,
recording, or other similar tax.
14.6 EXCULPATION. In addition to the provisions of Section XII
of this Plan, neither Sun TV nor the Creditors' Committee, nor any of their
respective members, officers, directors, employees, attorneys, advisors or
agents who were members, officers, directors, employees, attorneys, advisors or
agents, as the case may be, during the Chapter 11 Case shall have or incur any
liability to any holder of a Claim or Equity Interest or to any other Person for
any act or omission in connection with, or arising out of, the Chapter 11 Case,
the pursuit of confirmation of this Plan, the consummation of this Plan, or the
administration of this Plan or the property to be distributed under this Plan
except for willful misconduct or gross negligence, and, in all respects, Sun TV
and the Creditors' Committee and each of their respective members, officers,
directors, employees, advisors, and agents shall be entitled to rely upon the
advice of counsel with respect to their duties and responsibilities under this
Plan.
14.7 POST-CONFIRMATION DATE FEES AND EXPENSES OF
PROFESSIONALS. After the Confirmation Date, Sun TV shall, in the ordinary course
of business and without the necessity for any approval by the Bankruptcy Court,
pay the reasonable fees and
31
<PAGE> 67
expenses of the professional persons employed by Sun TV or the Creditors'
Committee in connection with the implementation and consummation of this Plan,
the claims reconciliation process and any other matters as to which such
professionals may be engaged. The fees and expenses of such professionals shall
be paid by Sun TV within ten (10) Business Days after submission to Sun TV and
the Creditors' Committee of a detailed invoice therefor. If Sun TV or the
Creditors' Committee dispute the reasonableness of any such invoice, Sun TV
shall timely pay the undisputed portion of such invoice, and Sun TV, the
Creditors' Committee, or the affected professional may, after attempting to
resolve the dispute, submit such dispute to the Bankruptcy Court for a
determination of the reasonableness of such invoice.
14.8 PAYMENT OF STATUTORY FEES. All fees payable pursuant to
Chapter 123 of title 28, United States Code, as determined by the Bankruptcy
Court on the Confirmation Date, shall be paid on the Effective Date. Any
statutory fees accruing after the Confirmation Date shall constitute
Administrative Claims and be paid in accordance with Section 2.1 of this Plan.
14.9 MODIFICATION OF PLAN. Sun TV reserves the right, in
accordance with the Bankruptcy Code and the Bankruptcy Rules, to amend or modify
this Plan at any time prior to the entry of the Confirmation Order. After the
entry of the Confirmation Order, Sun TV may, upon order of the Bankruptcy Court,
amend or modify this Plan, in accordance with section 1127(b) of the Bankruptcy
Code, or remedy any defect or omission or reconcile any inconsistency in this
Plan in such manner as may be necessary to carry out the purpose and intent of
this Plan. A holder of an Allowed Claim that is deemed to have accepted this
Plan shall be deemed to have accepted this Plan as modified if the proposed
modification does not materially and adversely change the treatment of the Claim
of such holder.
14.10 WITHDRAWAL OR REVOCATION. Sun TV, with the written
consent of the Creditors' Committee, may withdraw or revoke this Plan at any
time prior to the Confirmation Date. If Sun TV revokes or withdraws this Plan
prior to the Confirmation Date, or if the Confirmation Date does not occur, then
this Plan shall be deemed null and void. In such event, nothing contained herein
shall be deemed to constitute a waiver or release of any Claim by or against Sun
TV or any other person or to prejudice in any manner the rights of Sun TV or any
other person in any further proceedings involving Sun TV.
14.11 COURTS OF COMPETENT JURISDICTION. If the Court abstains
from exercising, or declines to exercise, jurisdiction or is otherwise without
jurisdiction over any matter arising out of this Plan, such abstention, refusal,
or failure of jurisdiction shall have no effect upon and shall not control,
prohibit, or limit the exercise of jurisdiction by any other court having
competent jurisdiction with respect to such matter.
32
<PAGE> 68
14.12 NOTICES. Any notices to or requests of Sun TV by parties
in interest under or in connection with this Plan shall be in writing and served
either by (i) certified mail, return receipt requested, postage prepaid, (ii)
hand delivery, (iii) confirmed facsimile or telecopy transmission, or (iv)
reputable overnight delivery service, all charges prepaid, and shall be deemed
to have been given when received by the following parties:
To the Debtors:
SUN TV AND APPLIANCES, INC.
6600 Port Road
Groveport, Ohio 43125
Tel.: (614) 492-5600
Fax: (614) 492-5688
Attn: President
with copies to:
MILBANK, TWEED, HADLEY & McCLOY LLP
Attorneys for Sun TV
1 Chase Manhattan Plaza
New York, NY 10005
Tel.: (212) 530-5000
Fax: (212) 530-5219
Attn: Luc A. Despins, Esq.
Dennis F. Dunne, Esq.
-and-
YOUNG CONAWAY STARGATT
& TAYLOR, LLP
Attorneys for Sun TV
P.O. Box 391
Rodney Square North, 11th Floor
Wilmington, Delaware 19801
Tel.: (302) 571-6600
Fax: (302) 571-1253
Attn: Laura Davis Jones, Esq.
Robert S. Brady, Esq.
To the Creditors' Committee:
OTTERBOURG, STEINDLER, HOUSTON & ROSEN, P.C.
Attorneys for the Creditors' Committee
230 Park Avenue
33
<PAGE> 69
New York, New York 10169
Tel.: (212) 661-9100
Fax: (212) 682-6104
Attn: Scott L. Hazan, Esq.
Brett H. Miller, Esq.
-and-
PEPPER HAMILTON LLP
1201 Market Street
Wilmington, DE 19801
Tel.: (302) 777-6500
Fax: (302) 656-8865
Attn: David B. Stratton, Esq.
14.13 NO INTEREST. Except as specifically provided for in the
Plan or the Confirmation Order, interest shall not accrue on Claims, and no
holder of a Claim shall be entitled to interest accruing on or after the
Petition Date on any Claim. Interest shall not accrue or be paid upon any
Disputed Claim in respect of the period from the Petition Date to the date a
final Distribution is made thereon if and after such Disputed Claim becomes an
Allowed Claim. Except as expressly provided herein, no prepetition Claim shall
be Allowed to the extent that it is for postpetition interest or other similar
charges.
14.14 SEVERABILITY. In the event that the Bankruptcy Court,
prior to entry of the Confirmation Order, determines that any provision of this
Plan is invalid, void or unenforceable, the Bankruptcy Court shall, with the
consent of Sun TV and the Creditors' Committee, have the power to alter and
interpret such term or provisions to make it valid or enforceable to the maximum
extent practicable, consistent with the original purpose of the term or
provision held to be invalid, void or unenforceable, and such term or provision
shall then be applicable as altered or interpreted. Notwithstanding any such
holding, alteration or interpretation, the remainder of the terms and provisions
of this Plan shall remain in full force and effect and shall in no way be
affected, impaired or invalidated by such holding, alteration or interpretation.
The Confirmation Order shall constitute a judicial determination and shall
provide that each term and provision of this Plan, as it may have been altered
or interpreted in accordance with the foregoing, is valid and enforceable
pursuant to its terms.
14.15 GOVERNING LAW. Except to the extent the Bankruptcy Code
or Bankruptcy Rules are applicable, the rights and obligations arising under
this Plan shall be governed by, and construed and enforced in accordance with
the laws of the State of Delaware, without giving effect to the principles of
conflicts of laws thereof.
14.16 FAILURE OF EFFECTIVE DATE. In the event that the
Effective Date does not occur, nothing in this Plan, including, without
limitation, the releases contained
34
<PAGE> 70
herein, shall be binding on the Debtors, the Estates, the Creditors' Committee
or any other Entity, or otherwise be of any force or effect.
14.17 PLAN CONTROLS. To the extent the Plan is inconsistent
with the Disclosure Statement, the provisions of the Plan shall be controlling.
14.18 RESERVATION OF RIGHTS. If the Plan is not confirmed by a
Final Order, or if the Plan is confirmed and does not become effective, the
rights of all parties in interest in the Chapter 11 Case are and will be
reserved in full. Any concessions or settlements reflected herein, if any, are
made for purposes of the Plan only, and if the Plan does not become effective,
no party in interest in the Chapter 11 Case shall be bound or deemed prejudiced
by any such concession or settlement.
14.19 BINDING EFFECT. The rights, benefits and obligations of
any Entity named or referred to in the Plan, or whose actions may be required to
effectuate the terms of the Plan shall be binding on, and shall inure to the
benefit of, any heir, executor, administrator, successor or assign of such
Entity (including, but not limited to, any trustee appointed for the Debtors
under Chapters 7 or 11 of the Bankruptcy Code). The Confirmation Order shall
provide that the terms and provisions of the Plan and the Confirmation Order
shall survive and remain effective after entry of any order which may be entered
converting the Chapter 11 Case to a case under Chapter 7 of the Bankruptcy Code,
and the terms and provisions of the Plan shall continue to be effective in this
or any superseding case under the Bankruptcy Code.
14.20 HEADINGS. Headings are used in this Plan for convenience
and reference only, and shall not constitute a part of this Plan for any other
purpose.
35
<PAGE> 71
14.21 EXHIBITS. All Exhibits to this Plan are incorporated
into and are a part of this Plan as if set forth in full herein.
[END OF TEXT]
36
<PAGE> 72
IN WITNESS WHEREOF, each of the undersigned has duly executed
this Plan as of the date first above written.
SUN TV AND APPLIANCES, INC.
By: /s/ James Moran
--------------------------------
Name: James Moran
Title: President
SUN TELEVISION AND APPLIANCES, INC.
By: /s/ James Moran
--------------------------------
Name: James Moran
Title: President
<PAGE> 1
Exhibit 99.2
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 31, 1999
================================================================================
Document Previously Explanation
Required attachments Attached Submitted Attached
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/ James T. Moran PRESIDENT
- ------------------------------------------- ------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
JAMES T. MORAN
- ------------------------------------------- ------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ Donna M. Zianni ASSISTANT CONTROLLER
- ------------------------------------------- ------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
DONNA M. ZIANNI
- ------------------------------------------- ------------------------
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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 31, 1999
COMPARATIVE BALANCE SHEET
(UNAUDITED)
<CAPTION>
- ------------------------------------------------------------------------------------------------------
ASSETS MAY-99 JUN-99 JUL-99
---------------------------------------------
29-MAY-99 03-JUL-99 31-JUL-99
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. CASH 18,225,981 17,791,698 16,285,623
- ------------------------------------------------------------------------------------------------------
2. ACCOUNTS RECEIVABLE 1,821,237 1,543,475 1,612,922
- ------------------------------------------------------------------------------------------------------
3. INVENTORY 0 0 0
- ------------------------------------------------------------------------------------------------------
4. NOTES RECEIVABLE 0 0 0
- ------------------------------------------------------------------------------------------------------
5. PREPAID EXPENSES 835,444 820,444 809,474
- ------------------------------------------------------------------------------------------------------
6. OTHER (CREDIT CARD RESERVES) 2,461,426 2,461,426 2,461,426
- ------------------------------------------------------------------------------------------------------
7. TOTAL CURRENT ASSETS 23,344,088 22,617,043 21,169,445
======================================================================================================
8. PROPERTY, PLANT & EQUIPMENT, net 0 0 0
- ------------------------------------------------------------------------------------------------------
9. ASSETS HELD FOR SALE 272,845 27,730 27,730
- ------------------------------------------------------------------------------------------------------
10. TOTAL PROPERTY, PLANT & EQUIP 272,845 27,730 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 23,616,933 22,644,773 21,197,175
======================================================================================================
POSTPETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------
15. ACCOUNTS PAYABLE & ACCRUALS 1,569,549 1,320,218 959,549
- ------------------------------------------------------------------------------------------------------
16. TAXES PAYABLE 0 0 0
- ------------------------------------------------------------------------------------------------------
17. NOTES PAYABLE 0 0 0
- ------------------------------------------------------------------------------------------------------
18. PROFESSIONAL FEES 1,102,070 931,605 850,405
- ------------------------------------------------------------------------------------------------------
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 2,671,619 2,251,823 1,809,954
======================================================================================================
PREPETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------
23. SECURED DEBT 0 0 0
- ------------------------------------------------------------------------------------------------------
24. PRIORITY DEBT 0 0 0
- ------------------------------------------------------------------------------------------------------
25. UNSECURED DEBT 57,212,043 57,348,630 57,330,346
- ------------------------------------------------------------------------------------------------------
26. OTHER 0 0 0
- ------------------------------------------------------------------------------------------------------
27. TOTAL PREPETITION LIABILITIES 57,212,043 57,348,630 57,330,346
- ------------------------------------------------------------------------------------------------------
28. TOTAL LIABILITIES 59,883,662 59,600,453 59,140,300
======================================================================================================
EQUITY
- ------------------------------------------------------------------------------------------------------
29. PREPETITION OWNERS' EQUITY (1,334,175) (1,334,175) (1,334,175)
- ------------------------------------------------------------------------------------------------------
30. POSTPETITION CUMULATIVE PROFIT OR (LOSS) (34,932,554) (35,621,505) (36,608,950)
- ------------------------------------------------------------------------------------------------------
31. TOTAL EQUITY (DEFICIT) (36,266,729) (36,955,680) (37,943,125)
- ------------------------------------------------------------------------------------------------------
32. TOTAL LIABILITIES & OWNERS' EQUITY 23,616,933 22,644,773 21,197,175
- ------------------------------------------------------------------------------------------------------
</TABLE>
NOTES FOR MONTH ENDING JULY 31, 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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 31, 1999
INCOME STATEMENT
(UNAUDITED)
<CAPTION>
- --------------------------------------------------------------------------------------------------
REVENUES MAY-99 JUN-99 JUL-99
-------------------------------------
29-MAY-99 03-JUL-99 31-JUL-99
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. GROSS REVENUES 2,989 9,070 9,099
- --------------------------------------------------------------------------------------------------
2. COST OF GOODS SOLD 304 82 80,623
==================================================================================================
3. GROSS PROFIT 2,685 8,988 (71,524)
- --------------------------------------------------------------------------------------------------
OPERATING EXPENSES
- --------------------------------------------------------------------------------------------------
4. Payroll 69,969 77,493 41,528
- --------------------------------------------------------------------------------------------------
5. Payroll Taxes 4,727 4,831 2,418
- --------------------------------------------------------------------------------------------------
6. Employee Benefits (10,912) (4,144) (108,020)
- --------------------------------------------------------------------------------------------------
7. Depreciation and Amortization 0 0 0
- --------------------------------------------------------------------------------------------------
8. Occupancy Costs 41,423 135,205 21,112
- --------------------------------------------------------------------------------------------------
9. Advertising 0 4,432 0
- --------------------------------------------------------------------------------------------------
10. Store Delivery 0 0 0
- --------------------------------------------------------------------------------------------------
11. Home Delivery 0 0 0
- --------------------------------------------------------------------------------------------------
12. Financing Costs (1,975) 0 0
- --------------------------------------------------------------------------------------------------
13. Equipment Rental 18,715 20,037 (48,498)
- --------------------------------------------------------------------------------------------------
14. Outsource Services 0 0 1,692
- --------------------------------------------------------------------------------------------------
15. Taxes 0 0 876,271
- --------------------------------------------------------------------------------------------------
16. Insurance 20,000 15,000 15,000
- --------------------------------------------------------------------------------------------------
17. Legal and Professional 28,445 23,492 55,342
- --------------------------------------------------------------------------------------------------
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) 14,580 11,138 14,573
==================================================================================================
22. TOTAL OPERATING EXPENSES 184,972 287,484 871,418
==================================================================================================
23. OPERATING INCOME (182,287) (278,496) (942,942)
- --------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- --------------------------------------------------------------------------------------------------
24. OTHER INCOME - Interest 0 0 0
- --------------------------------------------------------------------------------------------------
25. OTHER EXPENSES (ATTACH LIST) 0 0 0
- --------------------------------------------------------------------------------------------------
26. INTEREST EXPENSE 0 0 0
- --------------------------------------------------------------------------------------------------
27. OTHER - Loss (gain) on sale of assets 0 244,693 0
- --------------------------------------------------------------------------------------------------
28. NET OTHER INCOME & EXPENSES 0 244,693 0
==================================================================================================
29. LOSS BEFORE REORGANIZATION EXPENSES, TAXES
AND EXTRAORDINARY ITEM (182,287) (523,189) (942,942)
==================================================================================================
REORGANIZATION EXPENSES
- --------------------------------------------------------------------------------------------------
30. PROFESSIONAL FEES 143,591 215,906 103,699
- --------------------------------------------------------------------------------------------------
31. U.S. TRUSTEE FEES 0 0 10,250
- --------------------------------------------------------------------------------------------------
32. INTEREST INCOME (62,029) (67,354) (69,447)
- --------------------------------------------------------------------------------------------------
33. OTHER (ATTACH LIST) 7,844 17,210 0
==================================================================================================
34. TOTAL REORGANIZATION EXPENSES 89,406 165,762 44,502
- --------------------------------------------------------------------------------------------------
35. INCOME TAX 0 0 0
==================================================================================================
36. LOSS BEFORE EXTRAORDINARY ITEM (271,693) (688,951) (987,444)
==================================================================================================
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 (271,693) (688,951) (987,444)
==================================================================================================
</TABLE>
NOTES FOR MONTH ENDING JULY 31, 1999:
ITEM 6: Consists primarily of $106,000 of refunds of workers'
compensation premiums based on final audits.
ITEM 13: Represents reversal of overaccrual of lease payments due.
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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 31, 1999
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND MAY-99 JUN-99 JUL-99
--------------------------------------------------
DISBURSEMENTS 29-MAY-99 03-JUL-99 31-JUL-99
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. CASH-BEGINNING OF MONTH 16,303,341.73 18,419,339.76 17,995,185.10
- ---------------------------------------------------------------------------------------------------------------
RECEIPTS
- ---------------------------------------------------------------------------------------------------------------
2. CASH SALES 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
3. COLLECTION OF ACCOUNTS RECEIVABLE 2,482,480.09 0.00 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 46,074.68 407,757.25 134,525.25
===============================================================================================================
7. TOTAL RECEIPTS 2,528,554.77 407,757.25 134,525.25
===============================================================================================================
8. TOTAL CASH AVAILABLE 18,831,896.50 18,827,097.01 18,129,710.35
===============================================================================================================
<CAPTION>
CURRENT MONTH DISBURSEMENTS
- ---------------------------------------------------------------------------------------------------------------
29-MAY-99 03-JUL-99 31-JUL-99
- ---------------------------------------------------------------------------------------------------------------
PURPOSE AMOUNT AMOUNT AMOUNT
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
9. BANK FEES AND DEBT PAYDOWN 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
10. ADVERTISING 0.00 4,432.51 0.00
- ---------------------------------------------------------------------------------------------------------------
11. MERCHANDISE/PARTS 246.82 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
12. PAYROLL 87,531.81 121,460.10 43,082.47
- ---------------------------------------------------------------------------------------------------------------
13. STORE RENT 38,905.39 106,945.25 113,071.26
- ---------------------------------------------------------------------------------------------------------------
14. EQUIPMENT RENT 0.00 122,166.73 198,715.37
- ---------------------------------------------------------------------------------------------------------------
15. CONSTRUCTION 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
16. EMPLOYEE EXPENSES/UNIFORMS 4,624.84 6,078.17 3,050.57
- ---------------------------------------------------------------------------------------------------------------
17. FREIGHT/POSTAGE 0.00 561.00 0.00
- ---------------------------------------------------------------------------------------------------------------
18. GASOLINE 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
19. HOTEL/AIR FARE 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
20. INSURANCE 27,690.43 1,624.43 344.57
- ---------------------------------------------------------------------------------------------------------------
21. WORKERS COMPENSATION 15,461.98 11,476.61 18,284.11
- ---------------------------------------------------------------------------------------------------------------
22. 401 K 0.00 0.00 13,932.39
- ---------------------------------------------------------------------------------------------------------------
23. MISCELLANEOUS 8,598.29 16,684.82 58,499.75
- ---------------------------------------------------------------------------------------------------------------
24. GARNISHMENTS 342.92 188.30 0.00
- ---------------------------------------------------------------------------------------------------------------
25. SUPPLIES/MAINTENANCE 8,666.68 604.54 5,446.52
- ---------------------------------------------------------------------------------------------------------------
26. CUSTOMER REFUNDS 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
27. SECURITY 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
28. TAXES 0.00 0.00 876,271.22
- ---------------------------------------------------------------------------------------------------------------
29. TEMPORARY HELP SERVICES 200.00 3,184.80 1,692.00
- ---------------------------------------------------------------------------------------------------------------
30. UTILITIES 12,452.72 67,256.17 16,471.46
- ---------------------------------------------------------------------------------------------------------------
31. WASTE REMOVAL 280.00 0.00 140.00
- ---------------------------------------------------------------------------------------------------------------
32. CONSULTING 31,877.00 9,891.00 15,360.00
- ---------------------------------------------------------------------------------------------------------------
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 57.00 82.00 80,623.20
- ---------------------------------------------------------------------------------------------------------------
37. Reimbursement to liquidators for sales at closing
stores 0.00 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------
38. U.S. TRUSTEE FEES 0.00 0.00 10,250.00
- ---------------------------------------------------------------------------------------------------------------
39. PROFESSIONAL FEES 184,397.71 386,371.29 184,898.95
===============================================================================================================
40. TOTAL DISBURSEMENTS 421,333.59 859,007.72 1,640,133.84
===============================================================================================================
41. END OF MONTH BALANCE 18,419,339.76 17,995,185.10 17,547,144.16
===============================================================================================================
</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 July 4, 1999 through July 31,
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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 31, 1999
<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>
- ------------------------------------------------------------------------------
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) 699,954.00 10,000.00 50,000.00 1,050,000.00 1,809,954.00
- --------------------------------------------------------------------------------------------
</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
- ---------------------------------------------------------------------------------------------------
BEGINNING WITHHELD ENDING
TAX AND/OR AMOUNT TAX DELINQUENT
LIABILITY* ACCRUED PAID LIABILITY TAXES
===================================================================================================
<S> <C> <C> <C> <C> <C>
FEDERAL
- ---------------------------------------------------------------------------------------------------
WITHHOLDING** 0.00 7,102.67 7,102.67 0.00
- ---------------------------------------------------------------------------------------------------
FICA-EMPLOYEE** 0.00 2,413.87 2,413.87 0.00
- ---------------------------------------------------------------------------------------------------
FICA-EMPLOYER** 0.00 2,413.85 2,413.85 0.00
- ---------------------------------------------------------------------------------------------------
UNEMPLOYMENT 0.00 0.00 0.00 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 11,930.39 11,930.39 0.00 0.00
===================================================================================================
STATE AND LOCAL
===================================================================================================
WITHHOLDING 0.00 2,668.17 2,668.17 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 3.83 3.83 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 2,672.00 2,672.00 0.00 0.00
===================================================================================================
TOTAL TAXES 0.00 14,602.39 14,602.39 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 JULY 31, 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>
- ----------------------------------------------
BANK RECONCILIATION
<CAPTION>
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 July 1999 and a summary of the activity in each
account are included with this MOR. See MOR-6 supporting schedules.
<TABLE>
- ----------------------------------------------
INVESTMENT ACCOUNTS
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
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 16,201,209.76 16,201,209.76
- ----------------------------------------------------------------------------------------------------------
9.
- ----------------------------------------------------------------------------------------------------------
10.
- ----------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS 17,429,361.08 17,429,361.08
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------
CASH
- ----------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND - per the Company's Bank Statements 117,783.08
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
13. TOTAL CASH-END OF MONTH (Total of lines 5, 11, & 12) 17,547,144.16
- ----------------------------------------------------------------------------------------------------------
</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 31, 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 $12,307.70 $0.00
- -------------------------------------------------------------------------------------------------------
bonus $0.00
- -------------------------------------------------------------------------------------------------------
expenses $346.16
- -------------------------------------------------------------------------------------------------------
2. JAMES MORAN President expenses $2,635.17
- -------------------------------------------------------------------------------------------------------
3. TOTAL PAYMENTS TO INSIDERS $15,289.03 $0.00
- -------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------
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 0.00 856,775.37
- ----------------------------------------------------------------------------------------------------------------------------
3. KPMG Peat Marwick LLP Accountant 09/16/98 0.00 0.00 98,427.00
- ----------------------------------------------------------------------------------------------------------------------------
4. Otterbourg, Steindler, Houston & Attorney 09/16/98 0.00 0.00 470,771.96
- ----------------------------------------------------------------------------------------------------------------------------
5. Porter, Wright, Morris & Arthur Attorney 09/16/98 0.00 0.00 107,011.24
- ----------------------------------------------------------------------------------------------------------------------------
6. Young, Conaway, Stargatt & Attorney 09/16/98 0.00 0.00 190,944.05
- ----------------------------------------------------------------------------------------------------------------------------
7. Donlin, Recano & Company, Inc. Claims Consultant 09/16/98 184,898.95 184,898.95 530,789.86
- ----------------------------------------------------------------------------------------------------------------------------
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 0.00 0.00 933,735.51
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
12. TOTAL PAYMENTS TO PROFESSIONALS 184,898.95 184,898.95 4,115,075.10
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------
ADEQUATE PROTECTION PAYMENTS
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
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 each month 0.00 None
- -----------------------------------------------------------------------------------------------------------------------
2.
- -----------------------------------------------------------------------------------------------------------------------
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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 31, 1999
<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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING JULY 31, 1999
<CAPTION>
- ---------------------------------------------------------------------------------------------------
PERSONNEL
- ---------------------------------------------------------------------------------------------------
FULL TIME PART TIME TOTAL
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Total number of employees at beginning of period 12 0 12
- ---------------------------------------------------------------------------------------------------
2. Number of employees hired during the period 0 0 0
- ---------------------------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period 0 0 0
- ---------------------------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period 12 0 12
- ---------------------------------------------------------------------------------------------------
</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
JULY 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
SUMMARY OF BANK STATEMENT ACTIVITY
<PAGE> 11
MOR-4 SUPPORTING SCHEDULE
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
<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 7/3/99 430.11 12,274.88 18,416.52 32,315.78 1,000.00 1,386.73
MISCELLANEOUS CORPORATE DEPOSITS 134,525.25
TRANSFERS FROM SMALL BANKS --
CREDIT CARD DEPOSITS, NET 744.75
TRANSFERS TO/FROM BANKBOSTON
A/C 898-28038 -- --
WIRE TSF TO SUN TV CONCENTRATION
ACCOUNT -- --
WIRE TSF TO VENDORS (58,321.79)
WIRE TSF TO NCB A/CS - P/R, W/C,
HEALTH INS, PROF FEES (57,186.15) 15,190.77 41,995.38
WIRE TSF FROM/TO SUN TV SEI
INVESTMENT FUND 500,000.00
CHECKS PAID (471,270.24) (10,198.81) (8,039.11)
WIRES OUT - DIRECT DEP. & P/R TAX (35,014.65)
NSF CHECKS --
BANK/CREDIT CARD FEES -- (461.10) (5.24)
===============================================================================================
BALANCE 7/31/99 1,174.86 59,560.85 23,408.48 31,257.40 1,000.00 1,381.49
==============================================================================================
Beginning of month balance - all
accounts 65,824.02
=============
End of month balance - all accounts 117,783.08
=============
</TABLE>
<PAGE> 12
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JULY 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 31, 1999
(COVERING THE PERIOD JULY 4, 1999 THROUGH JULY 31, 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>
Refund Overpayment 7/14/99 BankBoston Retail Finance 58,321.79 Wire
----------
Total Equipment Lease 58,321.79
----------
Payroll 7/15/99 ADP 21,600.78 ACH
Payroll 7/30/99 ADP 20,394.60 ACH
----------
Total Payroll 41,995.38
----------
Workers Comp 7/12/99 M&N Risk Management $10,222.89 ACH
Workers Comp 7/27/99 M&N Risk Management $ 4,967.88 ACH
----------
Total Workers Compensation 15,190.77
----------
TOTAL WIRE AND ACH TRANSFERS 115,507.94
==========
</TABLE>
<PAGE> 14
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JULY 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
<TABLE>
POST-PETITION CHECKS FOR THE PERIOD 7/4/99 THROUGH 7/31/99
(Associate payroll checks are not included)
<CAPTION>
- -----------------------------
CHECK DATE
- -----------------------------
YEAR MON DAY CHECK# PAYEE TYPE AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
99 7 20 713720 MERRILL LYNCH, PIERCE, FENNER & 401K Administration 268.40
99 7 29 713760 MERRILL LYNCH, PIERCE, FENNER & 401K Administration 13,663.99
- ----------------------------------------------------------------------------------------------------------------------
401K Administration 13,932.39
- ----------------------------------------------------------------------------------------------------------------------
99 7 20 713725 MAPSYS INC Consulting 1,960.00
99 7 22 713736 MAPSYS INC Consulting 2,240.00
99 7 12 713711 MELROSE CONSULTING Consulting 1,800.00
99 7 22 713735 MELROSE CONSULTING Consulting 1,800.00
99 7 20 713722 OPEN TECHNOLOGY GROUP INC Consulting 2,520.00
99 7 22 713733 OPEN TECHNOLOGY GROUP INC Consulting 2,520.00
99 7 28 713753 OPEN TECHNOLOGY GROUP INC Consulting 2,520.00
- ----------------------------------------------------------------------------------------------------------------------
Consulting 15,360.00
- ----------------------------------------------------------------------------------------------------------------------
99 7 8 713700 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 7 15 713717 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 7 22 713731 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 7 29 713756 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
- ----------------------------------------------------------------------------------------------------------------------
Contract Labor 1,692.00
- ----------------------------------------------------------------------------------------------------------------------
99 7 29 713761 BETH SAVAGE Employee Expense 346.16
99 7 7 713696 JAMES MORAN Employee Expense 1,311.30
99 7 20 713724 JAMES MORAN Employee Expense 1,323.87
99 7 29 713762 JULIE DAWSON Employee Expense 69.24
- ----------------------------------------------------------------------------------------------------------------------
Employee Expense 3,050.57
- ----------------------------------------------------------------------------------------------------------------------
99 7 29 713759 AMERITECH CREDIT CORPORATION Equipment Rental 18,715.37
99 7 30 713766 ICX CORPORATION Equipment Rental 180,000.00
- ----------------------------------------------------------------------------------------------------------------------
Equipment Rental 198,715.37
- ----------------------------------------------------------------------------------------------------------------------
99 7 23 713738 FORTIS INSURANCE CO. Insurance 160.09
99 7 30 713765 FORTIS INSURANCE CO. Insurance 184.48
- -------------------------------------------------------------------------------------------------------------------
Insurance 344.57
- ----------------------------------------------------------------------------------------------------------------------
99 7 21 713729 GORDON FLESCH CO INC Maintenance 131.18
99 7 26 713744 GORDON FLESCH CO INC Maintenance 98.09
99 7 14 713714 IBM Maintenance 5,136.88
- ----------------------------------------------------------------------------------------------------------------------
Maintenance 5,366.15
- ----------------------------------------------------------------------------------------------------------------------
99 7 23 713739 JOHN MARTIN Miscellaneous 175.96
99 7 30 713767 WETZEL COUNTY COMMISSION Miscellaneous 2.00
- ----------------------------------------------------------------------------------------------------------------------
Miscellaneous 177.96
- ----------------------------------------------------------------------------------------------------------------------
99 7 8 713702 AUTOMATIC DATA PROCESSING Payroll 246.27
99 7 20 713719 AUTOMATIC DATA PROCESSING Payroll 278.19
99 7 29 713755 AUTOMATIC DATA PROCESSING Payroll 562.63
- ----------------------------------------------------------------------------------------------------------------------
Payroll 1,087.09
- ----------------------------------------------------------------------------------------------------------------------
99 7 22 713734 DONLIN RECANO & COMPANY, INC. Professional 184,898.95
- ----------------------------------------------------------------------------------------------------------------------
Professional 184,898.95
- ----------------------------------------------------------------------------------------------------------------------
99 7 20 713721 ALEXANDRIA VILLAGE LIMITED Rent 2,136.59
99 7 7 713693 DUKE REALTY LIMITED PARTNERSHIP Rent 4,029.76
99 7 30 713764 DUKE REALTY LIMITED PARTNERSHIP Rent 4,239.76
99 7 12 713708 HUNTINGTON MALL Rent 11,419.40
99 7 8 713704 WAL MART STORES INC Rent 15,261.75
99 7 20 713727 WAL MART STORES INC Rent 75,984.00
- ----------------------------------------------------------------------------------------------------------------------
Rent 113,071.26
- ----------------------------------------------------------------------------------------------------------------------
99 7 27 713747 TREASURER OF STATE OF OHIO Sales & Use Tax 644,861.24
99 7 27 713750 TREASURER OF STATE OF OHIO Sales & Use Tax 231,409.98
- ----------------------------------------------------------------------------------------------------------------------
Sales & Use Tax 876,271.22
- ----------------------------------------------------------------------------------------------------------------------
99 7 29 713757 ENDLESS COMPUTER SUPPLY Supplies 80.37
- ----------------------------------------------------------------------------------------------------------------------
Supplies 80.37
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 16
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
(Debtors-in-Possession)
CASE NO. 98-2107 AND 98-2109
MOR-4 SUPPORTING SCHEDULE
<TABLE>
POST-PETITION CHECKS FOR THE PERIOD 7/4/99 THROUGH 7/31/99
(Associate payroll checks are not included)
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
99 7 12 713709 MCGLONE INC. Trash Removal 140.00
- ----------------------------------------------------------------------------------------------------------------------
Trash Removal 140.00
- ----------------------------------------------------------------------------------------------------------------------
99 7 20 713723 U.S. TRUSTEE U.S. Trustee Fees 10,250.00
- ----------------------------------------------------------------------------------------------------------------------
U.S. Trustee Fees 10,250.00
- ----------------------------------------------------------------------------------------------------------------------
99 7 12 713706 AMERICAN ELECTRIC POWER Utilities 1,176.73
99 7 14 713713 AMERITECH Utilities 13.74
99 7 14 713715 AMERITECH Utilities 5,424.29
99 7 26 713745 AMERITECH Utilities 1,775.20
99 7 27 713749 AMERITECH CABS ACCOUNT Utilities 4,935.34
99 7 26 713741 AT&T Utilities 18.77
99 7 26 713742 AT&T Utilities 61.10
99 7 26 713743 BELL ATLANTIC - PA Utilities 455.91
99 7 28 713752 JADE INC Utilities 199.95
99 7 7 713698 MOUNTAINEER GAS Utilities 2,038.16
99 7 7 713695 OWENSBORO MUNICIPAL UTILITIES Utilities 372.27
- ----------------------------------------------------------------------------------------------------------------------
Utilities 16,471.46
- ----------------------------------------------------------------------------------------------------------------------
99 7 8 713703 VAC SERVICE CORP Warranty 80,623.20
- ----------------------------------------------------------------------------------------------------------------------
Warranty 80,623.20
- ----------------------------------------------------------------------------------------------------------------------
99 7 12 713707 THE PMA GROUP Workers' Comp 3,093.34
- ----------------------------------------------------------------------------------------------------------------------
Workers' Compensation 3,093.34
- ----------------------------------------------------------------------------------------------------------------------
TOTAL POST-PETITION CHECKS $1,524,625.90
</TABLE>
<PAGE> 17
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JULY 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR M0R-5
PAYROLL TAXES
<PAGE> 18
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
(DEBTORS-IN-POSSESSION)
CASE NO. 98-2107 AND 98-2109
MOR-5 SUPPORTING SCHEDULE
<TABLE>
PAYROLL TAXES PAYMENT - SUPPORTING DOCUMENTATION
FOR THE MONTH ENDING JULY 31, 1999
<CAPTION>
Deposit Federal Employee Employer
Date Income Tax FICA Tax FICA Tax Totals
========= ========== ======== ======== ==========
<S> <C> <C> <C> <C>
20-Jul-99 $3,647.03 $1,303.88 $1,303.87 $6,254.78
03-Aug-99 $3,455.64 $1,109.99 $1,109.98 $5,675.61
--------- --------- --------- ----------
$7,102.67 $2,413.87 $2,413.85 $11,930.39
========= ========= ========= ==========
</TABLE>
<PAGE> 19
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
JULY 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-6
BANK RECONCILIATIONS
<PAGE> 20
MOR-6 SUPPORTING SCHEDULE
JULY BANK RECONCILIATIONS
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
<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 1,381.49 1,174.86 59,560.85 23,408.48 1,000.00 31,257.40
2. ADD: TOTAL DEPOSITS NOT CREDITED -- -- -- 5,003.94 -- --
3. ADD: OUTSTANDING WIRE TRANSFERS -- -- -- -- -- --
4. SUBTRACT: OUTSTANDING CHECKS N/A N/A (1,242,075.97) (9,333.61) -- (23,808.09)
5. SUBTRACT: OUTSTANDING WIRE TRANSFERS -- -- -- -- -- --
6. OTHER RECONCILING ITEMS -- -- 585.87 -- -- --
7. ADJUSTED BANK BALANCE 1,381.49 1,174.86 (1,181,929.25) 19,078.81 1,000.00 7,449.31
8. MONTH END BALANCE PER BOOKS 1,381.49 -- (1,177,637.66) 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) -- 1,174.86 (4,291.59) (3,548.11) -- (42.20)
13. ADJUSTED BALANCE PER BOOKS 1,381.49 1,174.86 (1,181,929.25) 19,078.81 1,000.00 7,449.31
14. NUMBER OF LAST CHECK WRITTEN N/A N/A #713767 #7547 N/A #
</TABLE>
<PAGE> 21
MOR-6 SUPPORTING SCHEDULE
JULY BANK RECONCILIATIONS
OTHER RECONCILING ITEMS
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
<TABLE>
<S> <C>
OTHER RECONCILING ITEMS:
BANKBOSTON
804-81979
BBRF PROCEEDS
Other reconciling items - Book
---------
Credit card adjustments 1,174.86
=========
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 (42.20)
---------
(42.20)
=========
</TABLE>
<PAGE> 1
Exhibit 99.3
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 AUGUST 28, 1999
================================================================================
Document Previously Explanation
Required attachments Attached Submitted Attached
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/ JAMES T. MORAN PRESIDENT
- ------------------------------------------ ---------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
JAMES T. MORAN 12/2/99
- ------------------------------------------ ---------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ DONNA M. ZIANNI ASSISTANT CONTROLLER
- ------------------------------------------ ---------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
DONNA M. ZIANNI 12/2/99
- ------------------------------------------ ---------------------------
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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING AUGUST 28, 1999
COMPARATIVE BALANCE SHEET
(UNAUDITED)
<CAPTION>
- -------------------------------------------------------------------------------------------------------
ASSETS JUN-99 JUL-99 AUG-99
---------------------------------------------
03-JUL-99 31-JUL-99 28-AUG-99
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. CASH 17,791,698 16,285,623 15,917,125
- -------------------------------------------------------------------------------------------------------
2. ACCOUNTS RECEIVABLE 1,543,475 1,612,922 1,608,840
- -------------------------------------------------------------------------------------------------------
3. INVENTORY 0 0 0
- -------------------------------------------------------------------------------------------------------
4. NOTES RECEIVABLE 0 0 0
- -------------------------------------------------------------------------------------------------------
5. PREPAID EXPENSES 820,444 809,474 836,576
- -------------------------------------------------------------------------------------------------------
6. OTHER (CREDIT CARD RESERVES) 2,461,426 2,461,426 2,461,426
- -------------------------------------------------------------------------------------------------------
7. TOTAL CURRENT ASSETS 22,617,043 21,169,445 20,823,967
=======================================================================================================
8. PROPERTY, PLANT & EQUIPMENT, net 0 0 0
- -------------------------------------------------------------------------------------------------------
9. ASSETS HELD FOR SALE 27,730 27,730 27,376
- -------------------------------------------------------------------------------------------------------
10. TOTAL PROPERTY, PLANT & EQUIP 27,730 27,730 27,376
- -------------------------------------------------------------------------------------------------------
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 22,644,773 21,197,175 20,851,343
=======================================================================================================
POSTPETITION LIABILITIES
- -------------------------------------------------------------------------------------------------------
15. ACCOUNTS PAYABLE & ACCRUALS 1,320,218 959,549 959,442
- -------------------------------------------------------------------------------------------------------
16. TAXES PAYABLE 0 0 0
- -------------------------------------------------------------------------------------------------------
17. NOTES PAYABLE 0 0 0
- -------------------------------------------------------------------------------------------------------
18. PROFESSIONAL FEES 931,605 850,405 643,757
- -------------------------------------------------------------------------------------------------------
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 2,251,823 1,809,954 1,603,199
=======================================================================================================
PREPETITION LIABILITIES
- -------------------------------------------------------------------------------------------------------
23. SECURED DEBT 0 0 0
- -------------------------------------------------------------------------------------------------------
24. PRIORITY DEBT 0 0 0
- -------------------------------------------------------------------------------------------------------
25. UNSECURED DEBT 57,348,630 57,330,346 57,317,640
- -------------------------------------------------------------------------------------------------------
26. OTHER 0 0 0
- -------------------------------------------------------------------------------------------------------
27. TOTAL PREPETITION LIABILITIES 57,348,630 57,330,346 57,317,640
=======================================================================================================
28. TOTAL LIABILITIES 59,600,453 59,140,300 58,920,839
=======================================================================================================
EQUITY
- -------------------------------------------------------------------------------------------------------
29. PREPETITION OWNERS' EQUITY (1,334,175) (1,334,175) (1,334,175)
=======================================================================================================
30. POSTPETITION CUMULATIVE PROFIT OR (LOSS) (35,621,505) (36,608,950) (36,735,321)
=======================================================================================================
31. TOTAL EQUITY (DEFICIT) (36,955,680) (37,943,125) (38,069,496)
=======================================================================================================
32. TOTAL LIABILITIES & OWNERS' EQUITY 22,644,773 21,197,175 20,851,343
- -------------------------------------------------------------------------------------------------------
</TABLE>
NOTES FOR MONTH ENDING AUGUST 28, 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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING AUGUST 28, 1999
INCOME STATEMENT
(UNAUDITED)
<CAPTION>
- ---------------------------------------------------------------------------------------
REVENUES JUN-99 JUL-99 AUG-99
-------------------------------------
03-JUL-99 31-JUL-99 28-AUG-99
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. GROSS REVENUES 9,070 9,099 12,964
- ---------------------------------------------------------------------------------------
2. COST OF GOODS SOLD 82 80,623 0
=======================================================================================
3. GROSS PROFIT 8,988 (71,524) 12,964
- ---------------------------------------------------------------------------------------
OPERATING EXPENSES
- ---------------------------------------------------------------------------------------
4. Payroll 77,493 41,528 38,348
- ---------------------------------------------------------------------------------------
5. Payroll Taxes 4,831 2,418 2,171
- ---------------------------------------------------------------------------------------
6. Employee Benefits (4,144) (108,020) (108)
- ---------------------------------------------------------------------------------------
7. Depreciation and Amortization 0 0 0
- ---------------------------------------------------------------------------------------
8. Occupancy Costs 135,205 21,112 223
- ---------------------------------------------------------------------------------------
9. Advertising 4,432 0 (20,054)
- ---------------------------------------------------------------------------------------
10. Store Delivery 0 0 0
- ---------------------------------------------------------------------------------------
11. Home Delivery 0 0 0
- ---------------------------------------------------------------------------------------
12. Financing Costs 0 0 0
- ---------------------------------------------------------------------------------------
13. Equipment Rental 20,037 (48,498) 21,673
- ---------------------------------------------------------------------------------------
14. Outsource Services 0 1,692 1,692
- ---------------------------------------------------------------------------------------
15. Taxes 0 876,271 0
- ---------------------------------------------------------------------------------------
16. Insurance 15,000 15,000 21,029
- ---------------------------------------------------------------------------------------
17. Legal and Professional 23,492 55,342 16,759
- ---------------------------------------------------------------------------------------
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) 11,138 14,573 4,021
=======================================================================================
22. TOTAL OPERATING EXPENSES 287,484 871,418 85,754
=======================================================================================
23. OPERATING INCOME (278,496) (942,942) (72,790)
- ---------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- ---------------------------------------------------------------------------------------
24. OTHER INCOME - Interest 0 0 0
- ---------------------------------------------------------------------------------------
25. OTHER EXPENSES (ATTACH LIST) 0 0 0
- ---------------------------------------------------------------------------------------
26. INTEREST EXPENSE 0 0 0
- ---------------------------------------------------------------------------------------
27. OTHER - Loss (gain) on sale of assets 244,693 0 0
- ---------------------------------------------------------------------------------------
28. NET OTHER INCOME & EXPENSES 244,693 0 0
=======================================================================================
29. LOSS BEFORE REORGANIZATION EXPENSES,
TAXES AND EXTRAORDINARY ITEM (523,189) (942,942) (72,790)
=======================================================================================
REORGANIZATION EXPENSES
- ---------------------------------------------------------------------------------------
30. PROFESSIONAL FEES 215,906 103,699 118,947
- ---------------------------------------------------------------------------------------
31. U.S. TRUSTEE FEES 0 10,250 0
- ---------------------------------------------------------------------------------------
32. INTEREST INCOME (67,354) (69,447) (65,365)
- ---------------------------------------------------------------------------------------
33. OTHER (ATTACH LIST) 17,210 0 0
=======================================================================================
34. TOTAL REORGANIZATION EXPENSES 165,762 44,502 53,582
- ---------------------------------------------------------------------------------------
35. INCOME TAX 0 0 0
=======================================================================================
36. LOSS BEFORE EXTRAORDINARY ITEM (688,951) (987,444) (126,372)
=======================================================================================
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 (688,951) (987,444) (126,372)
- ---------------------------------------------------------------------------------------
</TABLE>
NOTES FOR MONTH ENDING AUGUST 28, 1999:
ITEM 9: Represents reversal of overaccrual of advertising payments due.
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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING AUGUST 28, 1999
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND JUN-99 JUL-99 AUG-99
--------------------------------------------------
DISBURSEMENTS 03-JUL-99 31-JUL-99 28-AUG-99
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. CASH-BEGINNING OF MONTH 18,419,339.76 17,995,185.10 17,547,144.16
- ----------------------------------------------------------------------------------------------------------------------
RECEIPTS
- ----------------------------------------------------------------------------------------------------------------------
2. CASH SALES 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00 0.00 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 407,757.25 134,525.25 25,441.69
======================================================================================================================
7. TOTAL RECEIPTS 407,757.25 134,525.25 25,441.69
======================================================================================================================
8. TOTAL CASH AVAILABLE 18,827,097.01 18,129,710.35 17,572,585.85
======================================================================================================================
CURRENT MONTH DISBURSEMENTS
- ----------------------------------------------------------------------------------------------------------------------
03-JUL-99 31-JUL-99 28-AUG-99
- ----------------------------------------------------------------------------------------------------------------------
PURPOSE AMOUNT AMOUNT AMOUNT
- ----------------------------------------------------------------------------------------------------------------------
9. BANK FEES AND DEBT PAYDOWN 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
10. ADVERTISING 4,432.51 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
11. MERCHANDISE/PARTS 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
12. PAYROLL 121,460.10 43,082.47 40,763.34
- ----------------------------------------------------------------------------------------------------------------------
13. STORE RENT 106,945.25 113,071.26 0.00
- ----------------------------------------------------------------------------------------------------------------------
14. EQUIPMENT RENT 122,166.73 198,715.37 2,958.12
- ----------------------------------------------------------------------------------------------------------------------
15. CONSTRUCTION 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
16. EMPLOYEE EXPENSES/UNIFORMS 6,078.17 3,050.57 2,883.16
- ----------------------------------------------------------------------------------------------------------------------
17. FREIGHT/POSTAGE 561.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
18. GASOLINE 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
19. HOTEL/AIR FARE 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
20. INSURANCE 1,624.43 344.57 60,573.64
- ----------------------------------------------------------------------------------------------------------------------
21. WORKERS COMPENSATION 11,476.61 18,284.11 12,638.35
- ----------------------------------------------------------------------------------------------------------------------
22. 401 K 0.00 13,932.39 0.00
- ----------------------------------------------------------------------------------------------------------------------
23. MISCELLANEOUS 16,684.82 58,499.75 0.00
- ----------------------------------------------------------------------------------------------------------------------
24. GARNISHMENTS 188.30 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
25. SUPPLIES/MAINTENANCE 604.54 5,446.52 0.00
- ----------------------------------------------------------------------------------------------------------------------
26. CUSTOMER REFUNDS 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
27. SECURITY 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
28. TAXES 0.00 876,271.22 0.00
- ----------------------------------------------------------------------------------------------------------------------
29. TEMPORARY HELP SERVICES 3,184.80 1,692.00 1,692.00
- ----------------------------------------------------------------------------------------------------------------------
30. UTILITIES 67,256.17 16,471.46 199.95
- ----------------------------------------------------------------------------------------------------------------------
31. WASTE REMOVAL 0.00 140.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
32. CONSULTING 9,891.00 15,360.00 16,136.00
- ----------------------------------------------------------------------------------------------------------------------
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 82.00 80,623.20 0.00
- ----------------------------------------------------------------------------------------------------------------------
37. Reimbursement to liquidators for sales at closing stores 0.00 0.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
38. U.S. TRUSTEE FEES 0.00 10,250.00 0.00
- ----------------------------------------------------------------------------------------------------------------------
39. PROFESSIONAL FEES 386,371.29 184,898.95 324,839.13
- ----------------------------------------------------------------------------------------------------------------------
======================================================================================================================
40. TOTAL DISBURSEMENTS 859,007.72 1,640,133.84 462,683.69
======================================================================================================================
41. END OF MONTH BALANCE 17,995,185.10 17,547,144.16 16,240,925.59
======================================================================================================================
</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 August 1, 1999 through August 28, 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
<TABLE>
MONTHLY OPERATING REPORT
FOR THE MONTH ENDING AUGUST 28, 1999
<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>
- -----------------------------------------
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) 563,199.00 10,000.00 10,000.00 1,020,000.00 1,603,199.00
- ---------------------------------------------------------------------------------------------------------------
</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
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
BEGINNING WITHHELD ENDING
TAX AND/OR AMOUNT TAX DELINQUENT
LIABILITY* ACCRUED PAID LIABILITY TAXES
===============================================================================================================
FEDERAL
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
WITHHOLDING** 0.00 6,797.71 6,797.71 0.00
- ---------------------------------------------------------------------------------------------------------------
FICA-EMPLOYEE** 0.00 2,170.54 2,170.54 0.00
- ---------------------------------------------------------------------------------------------------------------
FICA-EMPLOYER** 0.00 2,170.54 2,170.54 0.00
- ---------------------------------------------------------------------------------------------------------------
UNEMPLOYMENT 0.00 0.00 0.00 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 11,138.79 11,138.79 0.00 0.00
===============================================================================================================
STATE AND LOCAL
===============================================================================================================
WITHHOLDING 0.00 2,478.26 2,478.26 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 0.00 0.00 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 2,478.26 2,478.26 0.00 0.00
===============================================================================================================
TOTAL TAXES 0.00 13,617.05 13,617.05 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 AUGUST 28, 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>
- --------------------------------------
BANK RECONCILIATION
<CAPTION>
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 August 1999 and a summary of the activity in each
account are included with this MOR. See MOR-6 supporting schedules.
<TABLE>
- --------------------------------------
INVESTMENT ACCOUNTS
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
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 1,232,971.96
- ------------------------------------------------------------------------------------------------------------------
8. NatCity Investments - 509394035 12/31/98 Govt Money Market 16,201,209.76 14,865,836.02
- ------------------------------------------------------------------------------------------------------------------
9.
- ------------------------------------------------------------------------------------------------------------------
10.
- ------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS 17,429,361.08 16,098,807.98
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
- --------------------------------------
CASH
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
12. CURRENCY ON HAND - per the Company's Bank Statements 142,117.61
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH-END OF MONTH (Total of lines 5, 11, & 12) 16,240,925.59
- ------------------------------------------------------------------------------------------------------------------
</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 AUGUST 28, 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 and Secretary salary $12,307.70 $0.00
- -----------------------------------------------------------------------------------------------------------------
bonus $ 0.00
- -----------------------------------------------------------------------------------------------------------------
expenses $ 0.00
- -----------------------------------------------------------------------------------------------------------------
2. JAMES MORAN President expenses $ 2,883.16
- -----------------------------------------------------------------------------------------------------------------
3. TOTAL PAYMENTS TO INSIDERS $15,190.86 $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 78,898.50 78,898.50 935,673.87
- ---------------------------------------------------------------------------------------------------------------------------
3. KPMG Peat Marwick LLP Accountant 09/16/98 3,024.40 3,024.40 101,451.40
- ---------------------------------------------------------------------------------------------------------------------------
4. Otterbourg, Steindler, Houston & Attorney 09/16/98 24,030.25 24,030.25 494,802.21
- ---------------------------------------------------------------------------------------------------------------------------
5. Porter, Wright, Morris & Arthur Attorney 09/16/98 9,993.35 9,993.35 117,004.59
- ---------------------------------------------------------------------------------------------------------------------------
6. Young, Conaway, Stargatt & Attorney 09/16/98 18,002.86 18,002.86 208,946.91
- ---------------------------------------------------------------------------------------------------------------------------
7. Donlin, Recano & Company, Inc. Claims Consultant 09/16/98 34,455.26 34,455.26 565,245.12
- ---------------------------------------------------------------------------------------------------------------------------
8. Ernst & Young LLP Accountant 09/16/98 38,384.80 38,384.80 424,145.20
- ---------------------------------------------------------------------------------------------------------------------------
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 3,026.73 3,026.73 21,077.92
- ---------------------------------------------------------------------------------------------------------------------------
11. Milbank, Tweed, Hadley & McCloy Attorney 11/23/98 115,022.98 115,022.98 1,048,758.49
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
12. TOTAL PAYMENTS TO PROFESSIONALS 324,839.13 324,839.13 4,439,914.23
- ---------------------------------------------------------------------------------------------------------------------------
</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 AUGUST 28, 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. 7/21/99 through 7/21/00 - $60,000 paid in full
- --------------------------------------------------------------------------------------------------------------------------------
8/13/99
- --------------------------------------------------------------------------------------------------------------------------------
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. Final
audits have been completed for Pennsylvania, Indiana,
Virginia, New York and Kentucky, and the accounts
have been closed.
<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 AUGUST 28, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
PERSONNEL
- ------------------------------------------------------------------------------------------------------------------------
FULL TIME PART TIME TOTAL
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Total number of employees at beginning of period 12 0 12
- ------------------------------------------------------------------------------------------------------------------------
2. Number of employees hired during the period 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period 12 0 12
- ------------------------------------------------------------------------------------------------------------------------
</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
AUGUST 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
SUMMARY OF BANK STATEMENT ACTIVITY
<PAGE> 11
MOR-4 SUPPORTING SCHEDULE
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
<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 8/1/99 1,174.86 59,560.85 23,408.48 31,257.40 1,000.00 1,381.49
MISCELLANEOUS CORPORATE DEPOSITS 25,441.69
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 --
WIRE TSF TO NCB A/CS - P/R,
W/C, HEALTH INS, PROF FEES (52,778.35) 12,638.35 40,140.00
WIRE TSF FROM/TO SUN TV SEI
INVESTMENT FUND 1,400,000.00
CHECKS PAID (1,345,094.57) (15,937.32) (5,488.34)
WIRES OUT - DIRECT DEP. & P/R TAX (33,883.95)
NSF CHECKS --
BANK/CREDIT CARD FEES -- (697.92) (5.06)
BALANCE 8/28/99 1,174.86 86,431.70 20,109.51 32,025.11 1,000.00 1,376.43
==============================================================================================
Beginning of month balance - all
accounts 117,783.08
==========
End of month balance - all accounts 142,117.61
==========
</TABLE>
<PAGE> 12
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
AUGUST 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 AUGUST 28, 1999
(COVERING THE PERIOD AUGUST 1, 1999 THROUGH AUGUST 28, 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>
Payroll 8/12/99 ADP 20,190.59 ACH
Payroll 8/26/99 ADP 19,949.41 ACH
----------
Total Payroll 40,140.00
----------
Workers Comp 8/10/99 M&N Risk Management $ 2,308.81 ACH
Workers Comp 8/26/99 M&N Risk Management $10,329.54 ACH
----------
Total Workers Compensation 12,638.35
----------
TOTAL WIRE AND ACH TRANSFERS 52,778.35
==========
</TABLE>
<PAGE> 14
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
AUGUST 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 8/1/99 THROUGH 8/28/99
(ASSOCIATE PAYROLL CHECKS ARE NOT INCLUDED)
<TABLE>
- --------------------------
CHECK DATE
- --------------------------
<CAPTION>
YEAR MON DAY CHECK# PAYEE TYPE AMOUNT
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
99 8 16 713794 MELROSE CONSULTING Consulting 1,800.00
99 8 6 713780 OPEN TECHNOLOGY GROUP INC Consulting 4,536.00
99 8 16 713792 OPEN TECHNOLOGY GROUP INC Consulting 2,520.00
99 8 19 713797 OPEN TECHNOLOGY GROUP INC Consulting 2,520.00
99 8 25 713815 OPEN TECHNOLOGY GROUP INC Consulting 4,760.00
- ----------------------------------------------------------------------------------------------------------------------------------
Consulting 16,136.00
- ----------------------------------------------------------------------------------------------------------------------------------
99 8 5 713773 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 8 13 713788 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 8 19 713798 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 8 26 713820 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
- ----------------------------------------------------------------------------------------------------------------------------------
Contract Labor 1,692.00
- ----------------------------------------------------------------------------------------------------------------------------------
99 8 4 713771 JAMES MORAN Employee Expense 2,883.16
- ----------------------------------------------------------------------------------------------------------------------------------
Employee Expense 2,883.16
- ----------------------------------------------------------------------------------------------------------------------------------
99 8 6 713781 EUROPEAN AMERICAN BANK Equipment Rental 2,958.12
- ----------------------------------------------------------------------------------------------------------------------------------
Equipment Rental 2,958.12
- ----------------------------------------------------------------------------------------------------------------------------------
99 8 5 713776 ANTHEM BLUE CROSS BLUE SHIELD Insurance 68.03
99 8 13 713789 AON RISK SERVIES Insurance 60,000.00
99 8 5 713777 FORTIS INSURANCE CO. Insurance 270.36
99 8 10 713785 ISAAC PROPERTY COMPANY LP Insurance 235.25
- ----------------------------------------------------------------------------------------------------------------------------------
Insurance 60,573.64
- ----------------------------------------------------------------------------------------------------------------------------------
99 8 10 713784 AUTOMATIC DATA PROCESSING Payroll 315.14
99 8 19 713796 AUTOMATIC DATA PROCESSING Payroll 308.20
- ----------------------------------------------------------------------------------------------------------------------------------
Payroll 623.34
- ----------------------------------------------------------------------------------------------------------------------------------
99 8 23 713803 BTS, LLC Professional 78,898.50
99 8 16 713793 DONLIN RECANO & COMPANY, INC. Professional 21,825.35
99 8 23 713806 DONLIN RECANO & COMPANY, INC. Professional 12,629.91
99 8 20 713801 ERNST & YOUNG LLP Professional 8,023.00
99 8 23 713807 ERNST & YOUNG LLP Professional 5,645.20
99 8 25 713817 ERNST & YOUNG LLP Professional 24,716.60
99 8 23 713804 KPMG PEAT MARWICK LLP Professional 3,024.40
99 8 5 713778 MILBANK TWEED HADLEY & MCCLOY Professional 89,831.00
99 8 23 713809 MILBANK TWEED HADLEY & MCCLOY Professional 25,191.98
99 8 20 713800 OTTERBOURG STEINDLER HOUSTON & Professional 16,255.70
99 8 23 713805 OTTERBOURG STEINDLER HOUSTON & Professional 7,774.55
99 8 23 713808 PEPPER HAMILTON LLP Professional 1,865.16
99 8 25 713818 PEPPER HAMILTON LLP Professional 1,161.57
99 8 6 713782 PORTER WRIGHT MORRIS & ARTHUR Professional 5,888.38
99 8 10 713786 PORTER WRIGHT MORRIS & ARTHUR Professional 4,104.97
99 8 5 713775 YOUNG CONAWAY STARGATT & Professional 18,002.86
- ----------------------------------------------------------------------------------------------------------------------------------
Professional 324,839.13
- ----------------------------------------------------------------------------------------------------------------------------------
99 8 16 713791 JADE INC Utilities 199.95
- ----------------------------------------------------------------------------------------------------------------------------------
Utilities 199.95
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL POST-PETITION CHECKS 409,905.34
</TABLE>
<PAGE> 16
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
AUGUST 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 AUGUST 28, 1999
<TABLE>
<CAPTION>
Deposit Federal Employee Employer
Date Income Tax FICA Tax FICA Tax Totals
--------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C>
17-Aug-99 $3,425.30 $1,093.86 $1,093.84 $5,613.00
31-Aug-99 $3,372.41 $1,076.68 $1,076.70 $5,525.79
--------- --------- --------- ----------
$6,797.71 $2,170.54 $2,170.54 $11,138.79
========= ========= ========= ==========
</TABLE>
<PAGE> 18
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
AUGUST 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-6
BANK RECONCILIATIONS
<PAGE> 19
MOR-6 SUPPORTING SCHEDULE
AUGUST BANK RECONCILIATIONS
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
<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 1,376.43 1,174.86 86,431.70 20,109.51 1,000.00 32,025.11
2. ADD: TOTAL DEPOSITS NOT CREDITED -- -- -- 3,405.66 -- --
3. ADD: OUTSTANDING WIRE TRANSFERS -- -- -- -- -- --
4. SUBTRACT: OUTSTANDING CHECKS N/A N/A (306,886.74) (4,440.36) -- (24,575.80)
5. SUBTRACT: OUTSTANDING WIRE TRANSFERS -- -- -- -- -- --
6. OTHER RECONCILING ITEMS -- -- 585.87 -- -- --
7. ADJUSTED BANK BALANCE 1,376.43 1,174.86 (219,869.17) 19,074.81 1,000.00 7,449.31
8. MONTH END BALANCE PER BOOKS 1,376.43 -- (215,577.58) 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) -- 1,174.86 (4,291.59) (3,552.11) -- (42.20)
13. ADJUSTED BALANCE PER BOOKS 1,376.43 1,174.86 (219,869.17) 19,074.81 1,000.00 7,449.31
14. NUMBER OF LAST CHECK WRITTEN N/A N/A #713820 #7567 N/A #
</TABLE>
<PAGE> 20
MOR-6 SUPPORTING SCHEDULE
AUGUST BANK RECONCILIATIONS
OTHER RECONCILING ITEMS
DEBTOR: CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
<TABLE>
<CAPTION>
OTHER RECONCILING ITEMS:
<S> <C>
BANKBOSTON
804-81979
BBRF PROCEEDS
Other reconciling items - Book
---------
Credit card adjustments 1,174.86
=========
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 (3,552.11)
---------
(3,552.11)
=========
NATIONAL CITY
394035045
PAYROLL
Miscellaneous reconciling items (42.20)
---------
(42.20)
=========
</TABLE>
<PAGE> 1
Exhibit 99.4
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 October 2, 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.
<TABLE>
<CAPTION>
<S> <C>
RESPONSIBLE PARTY:
/s/James T. Moran President
- ---------------------------------------------------------------------- -------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
JAMES T. MORAN 12/15/99
- ---------------------------------------------------------------------- -------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/Donna M. Zianni Assistant Controller
- ---------------------------------------------------------------------- -------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
DONNA M. ZIANNI 12/15/99
- ---------------------------------------------------------------------- -------------------------
PRINTED NAME OF PREPARER DATE
</TABLE>
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-1
Accrual Basis - Unaudited
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
MONTHLY OPERATING REPORT
For the month ending October 2, 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.
<TABLE>
<CAPTION>
<S> <C>
RESPONSIBLE PARTY:
President
- ---------------------------------------------------------------------- -------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
JAMES T. MORAN
- ---------------------------------------------------------------------- -------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Assistant Controller
- ---------------------------------------------------------------------- -------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
DONNA M. ZIANNI
- ---------------------------------------------------------------------- -------------------------
PRINTED NAME OF PREPARER DATE
</TABLE>
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> 3
<TABLE>
<CAPTION>
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 October 2, 1999
COMPARATIVE BALANCE SHEET
(Unaudited)
- ------------------------------------------------------------------------------------------------------------------------
ASSETS Jul-99 Aug-99 Sep-99
--------------------------------------------------------
31-Jul-99 28-Aug-99 02-Oct-99
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. CASH 16,285,623 15,917,125 15,704,174
- ------------------------------------------------------------------------------------------------------------------------
2. ACCOUNTS RECEIVABLE 1,612,922 1,608,840 1,543,475
- ------------------------------------------------------------------------------------------------------------------------
3. INVENTORY 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
4. NOTES RECEIVABLE 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
5. PREPAID EXPENSES 809,474 836,576 835,606
- ------------------------------------------------------------------------------------------------------------------------
6. OTHER (CREDIT CARD RESERVES) 2,461,426 2,461,426 2,461,426
- ------------------------------------------------------------------------------------------------------------------------
7. TOTAL CURRENT ASSETS 21,169,445 20,823,967 20,544,681
- ------------------------------------------------------------------------------------------------------------------------
8. PROPERTY, PLANT & EQUIPMENT, net 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
9. ASSETS HELD FOR SALE 27,730 27,376 26,721
- ------------------------------------------------------------------------------------------------------------------------
10. TOTAL PROPERTY, PLANT & EQUIP 27,730 27,376 26,721
- ------------------------------------------------------------------------------------------------------------------------
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 21,197,175 20,851,343 20,571,402
- ------------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
15. ACCOUNTS PAYABLE & ACCRUALS 959,549 959,442 954,144
- ------------------------------------------------------------------------------------------------------------------------
16. TAXES PAYABLE 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
17. NOTES PAYABLE 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
18. PROFESSIONAL FEES 850,405 643,757 566,170
- ------------------------------------------------------------------------------------------------------------------------
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 1,809,954 1,603,199 1,520,314
- ------------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------
23. SECURED DEBT 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
24. PRIORITY DEBT 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
25. UNSECURED DEBT 57,330,346 57,317,640 57,307,078
- ------------------------------------------------------------------------------------------------------------------------
26. OTHER 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
27. TOTAL PREPETITION LIABILITIES 57,330,346 57,317,640 57,307,078
- ------------------------------------------------------------------------------------------------------------------------
28. TOTAL LIABILITIES 59,140,300 58,920,839 58,827,392
- ------------------------------------------------------------------------------------------------------------------------
EQUITY
- ------------------------------------------------------------------------------------------------------------------------
29. PREPETITION OWNERS' EQUITY (1,334,175) (1,334,175) (1,334,175)
- ------------------------------------------------------------------------------------------------------------------------
30. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) (36,608,950) (36,735,321) (36,921,815)
- ------------------------------------------------------------------------------------------------------------------------
31. TOTAL EQUITY (DEFICIT) (37,943,125) (38,069,496) (38,255,990)
- ------------------------------------------------------------------------------------------------------------------------
32. TOTAL LIABILITIES &
OWNERS' EQUITY 21,197,175 20,851,343 20,571,402
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTES FOR MONTH ENDING OCTOBER 2, 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> 4
<TABLE>
<CAPTION>
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 October 2, 1999
INCOME STATEMENT
(Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
REVENUES Jul-99 Aug-99 Sep-99
--------------------------------------------------------
31-Jul-99 28-Aug-99 02-Oct-99
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. GROSS REVENUES 9,099 12,964 1,799
- ---------------------------------------------------------------------------------------------------------------------
2. COST OF GOODS SOLD 80,623 0 0
- ---------------------------------------------------------------------------------------------------------------------
3. GROSS PROFIT (71,524) 12,964 1,799
- ---------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
- ---------------------------------------------------------------------------------------------------------------------
4. Payroll 41,528 38,348 62,771
- ---------------------------------------------------------------------------------------------------------------------
5. Payroll Taxes 2,418 2,171 3,467
- ---------------------------------------------------------------------------------------------------------------------
6. Employee Benefits (108,020) (108) 321
- ---------------------------------------------------------------------------------------------------------------------
7. Depreciation and Amortization 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
8. Occupancy Costs 21,112 223 4,935
- ---------------------------------------------------------------------------------------------------------------------
9. Advertising 0 (20,054) 0
- ---------------------------------------------------------------------------------------------------------------------
10. Store Delivery 0 0 (7,678)
- ---------------------------------------------------------------------------------------------------------------------
11. Home Delivery 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
12. Financing Costs 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
13. Equipment Rental (48,498) 21,673 18,715
- ---------------------------------------------------------------------------------------------------------------------
14. Outsource Services 1,692 1,692 2,115
- ---------------------------------------------------------------------------------------------------------------------
15. Taxes 876,271 0 52,000
- ---------------------------------------------------------------------------------------------------------------------
16. Insurance 15,000 21,029 5,000
- ---------------------------------------------------------------------------------------------------------------------
17. Legal and Professional 55,342 16,759 8,541
- ---------------------------------------------------------------------------------------------------------------------
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) 14,573 4,021 3,767
- ---------------------------------------------------------------------------------------------------------------------
22. TOTAL OPERATING EXPENSES 871,418 85,754 153,954
- ---------------------------------------------------------------------------------------------------------------------
23. OPERATING INCOME (942,942) (72,790) (152,155)
- ---------------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- ---------------------------------------------------------------------------------------------------------------------
24. OTHER INCOME - Interest 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
25. OTHER EXPENSES (ATTACH LIST) 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
26. INTEREST EXPENSE 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
27. OTHER - Loss (gain) on sale of assets 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
28. NET OTHER INCOME & EXPENSES 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
29. LOSS BEFORE REORGANIZATION EXPENSES, TAXES AND
EXTRAORDINARY ITEM (942,942) (72,790) (152,155)
- ---------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- ---------------------------------------------------------------------------------------------------------------------
30. PROFESSIONAL FEES 103,699 118,947 98,259
- ---------------------------------------------------------------------------------------------------------------------
31. U.S. TRUSTEE FEES 10,250 0 0
- ---------------------------------------------------------------------------------------------------------------------
32. INTEREST INCOME (69,447) (65,365) (63,920)
- ---------------------------------------------------------------------------------------------------------------------
33. OTHER (ATTACH LIST) 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
34. TOTAL REORGANIZATION EXPENSES 44,502 53,582 34,339
- ---------------------------------------------------------------------------------------------------------------------
35. INCOME TAX 0 0 0
- ---------------------------------------------------------------------------------------------------------------------
36. LOSS BEFORE EXTRAORDINARY ITEM (987,444) (126,372) (186,494)
- ---------------------------------------------------------------------------------------------------------------------
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 (987,444) (126,372) (186,494)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTES FOR MONTH ENDING OCTOBER 2, 1999:
ITEM 10: Represents reversal of overaccrual of transporation costs due
ITEM 21: Primarily consists of telephone, repairs/maintenance, supplies,
employee expenses and bank fees.
<PAGE> 5
<TABLE>
<CAPTION>
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 October 2, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND Jul-99 Aug-99 Sep-99
---------------------------------------------------------
DISBURSEMENTS 31-Jul-99 28-Aug-99 02-Oct-99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 CASH-BEGINNING OF MONTH 17,995,185.10 17,547,144.16 16,240,925.59
- -----------------------------------------------------------------------------------------------------------------------------------
RECEIPTS
- -----------------------------------------------------------------------------------------------------------------------------------
2. CASH SALES 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00 0.00 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 134,525.25 25,441.69 66,333.50
- -----------------------------------------------------------------------------------------------------------------------------------
7. TOTAL RECEIPTS 134,525.25 25,441.69 66,333.50
- -----------------------------------------------------------------------------------------------------------------------------------
8. TOTAL CASH AVAILABLE 18,129,710.35 17,572,585.85 16,307,259.09
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT MONTH DISBURSEMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
31-Jul-99 28-Aug-99 02-Oct-99
- -----------------------------------------------------------------------------------------------------------------------------------
PURPOSE AMOUNT AMOUNT AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
9. BANK FEES AND DEBT PAYDOWN 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
10. ADVERTISING 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
11. MERCHANDISE/PARTS 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
12. PAYROLL 43,082.47 40,763.34 53,497.15
- -----------------------------------------------------------------------------------------------------------------------------------
13. STORE / OFFICE RENT 113,071.26 0.00 8,059.52
- -----------------------------------------------------------------------------------------------------------------------------------
14. EQUIPMENT RENT 198,715.37 2,958.12 32,870.79
- -----------------------------------------------------------------------------------------------------------------------------------
15. CONSTRUCTION 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
16. EMPLOYEE EXPENSES/UNIFORMS 3,050.57 2,883.16 1,196.65
- -----------------------------------------------------------------------------------------------------------------------------------
17. FREIGHT/POSTAGE 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
18. GASOLINE 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
19. HOTEL/AIR FARE 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
20. INSURANCE 344.57 60,573.64 865.55
- -----------------------------------------------------------------------------------------------------------------------------------
21. WORKERS COMPENSATION 18,284.11 12,638.35 10,562.14
- -----------------------------------------------------------------------------------------------------------------------------------
22. 401 K 13,932.39 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
23. MISCELLANEOUS 58,499.75 0.00 2,367.15
- -----------------------------------------------------------------------------------------------------------------------------------
24. GARNISHMENTS 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
25. SUPPLIES/MAINTENANCE 5,446.52 0.00 332.84
- -----------------------------------------------------------------------------------------------------------------------------------
26. CUSTOMER REFUNDS 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
27. SECURITY 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
28. TAXES 876,271.22 0.00 52,000.00
- -----------------------------------------------------------------------------------------------------------------------------------
29. TEMPORARY HELP SERVICES 1,692.00 1,692.00 2,115.00
- -----------------------------------------------------------------------------------------------------------------------------------
30. UTILITIES 16,471.46 199.95 227.64
- -----------------------------------------------------------------------------------------------------------------------------------
31. WASTE REMOVAL 140.00 0.00 905.00
- -----------------------------------------------------------------------------------------------------------------------------------
32. CONSULTING 15,360.00 16,136.00 4,160.00
- -----------------------------------------------------------------------------------------------------------------------------------
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 80,623.20 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
37. Reimbursement to liquidators for sales at closing stores 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
38. U.S. TRUSTEE FEES 10,250.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
39. PROFESSIONAL FEES 184,898.95 324,839.13 165,845.97
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
40. TOTAL DISBURSEMENTS 1,640,133.84 462,683.69 335,005.40
- -----------------------------------------------------------------------------------------------------------------------------------
41. END OF MONTH BALANCE 17,547,144.16 16,240,925.59 15,936,759.32
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ITEMS 1 & 41: Beginning and Ending Cash balances reflect balances per
bank statements.
ITEM 6: Consists of various miscellaneous corporate deposits and interest
ITEMS 9 - 40: Disbursements reflect wire and/or ACH transfers and checks
written during the period August 29, 1999 through October 2, 1999
<PAGE> 6
<TABLE>
<CAPTION>
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 October 2, 1999
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE AGING
- -----------------------------------------------------------------------------------------------------------------------------
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) 562,814.00 2,500.00 5,000.00 950,000.00 1,520,314.00
- ------------------------------------------------------------------------------------------------------------------------------
</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>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
STATUS OF POST PETITION TAXES
================================================================================================================================
BEGINNING WITHHELD ENDING
TAX AND/OR AMOUNT TAX DELINQUENT
LIABILITY ACCRUED PAID LIABILITY TAXES
================================================================================================================================
<S> <C> <C> <C> <C> <C>
FEDERAL
- --------------------------------------------------------------------------------------------------------------------------------
WITHHOLDING** 0.00 10,023.32 10,023.32 0.00
- --------------------------------------------------------------------------------------------------------------------------------
FICA-EMPLOYEE** 0.00 2,444.98 2,444.98 0.00
- --------------------------------------------------------------------------------------------------------------------------------
FICA-EMPLOYER** 0.00 2,445.00 2,445.00 0.00
- --------------------------------------------------------------------------------------------------------------------------------
UNEMPLOYMENT 0.00 0.00 0.00 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 14,913.30 14,913.30 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
- --------------------------------------------------------------------------------------------------------------------------------
WITHHOLDING 0.00 3,461.27 3,461.27 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 0.00 0.00 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 3,461.27 3,461.27 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL TAXES 0.00 18,374.57 18,374.57 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> 7
<TABLE>
<CAPTION>
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 October 2, 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.
- -------------------------------------------------------------
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 September 1999 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 1,242,898.49 1,242,898.49
- -------------------------------------------------------------------------------------------------------------------------------
8. NatCity Investments - 509394035 12/31/98 Govt Money Market 14,585,194.49 14,585,194.49
- -------------------------------------------------------------------------------------------------------------------------------
9.
- -------------------------------------------------------------------------------------------------------------------------------
10.
- -------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS 15,828,092.98 15,828,092.98
- -------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------
CASH
- -------------------------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND - per the Company's
Bank Statements 108,666.34
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH-END OF MONTH (Total of
lines 5, 11, & 12) 15,936,759.32
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
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 October 2, 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.
- --------------------------------------------------------------------------------------------------------------------------------
INSIDERS
- --------------------------------------------------------------------------------------------------------------------- CUMULATIVE
TYPE OF AMOUNT UNPAID
NAME POSITION PAYMENT PAID BALANCE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BETH SAVAGE CFO, Treasurer & Secretary salary $21,538.48 $0.00
- ---------------------------------------------------------------------------------------------------------------------------------
bonus $0.00
- ---------------------------------------------------------------------------------------------------------------------------------
expenses $0.00
- ---------------------------------------------------------------------------------------------------------------------------------
2. JAMES MORAN President expenses $958.74
- ---------------------------------------------------------------------------------------------------------------------------------
3. TOTAL PAYMENTS TO INSIDERS $22,497.22 $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 16,689.20 16,689.20 952,363.07
- --------------------------------------------------------------------------------------------------------------------------------
3. KPMG Peat Marwick LLP Accountant 09/16/98 0.00 0.00 101,451.40
- --------------------------------------------------------------------------------------------------------------------------------
4. Otterbourg, Steindler, Houston & Attorney 09/16/98 3,337.03 3,337.03 498,139.24
- --------------------------------------------------------------------------------------------------------------------------------
5. Porter, Wright, Morris & Arthur Attorney 09/16/98 2,710.11 2,710.11 119,714.70
- --------------------------------------------------------------------------------------------------------------------------------
6. Young, Conaway, Stargatt & Attorney 09/16/98 0.00 0.00 208,946.91
- --------------------------------------------------------------------------------------------------------------------------------
7. Donlin, Recano & Company, Inc. Claims Consultant 09/16/98 13,963.04 13,963.04 579,208.16
- --------------------------------------------------------------------------------------------------------------------------------
8. Ernst & Young LLP Accountant 09/16/98 1,437.60 1,437.60 425,582.80
- --------------------------------------------------------------------------------------------------------------------------------
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 1,200.53 1,200.53 22,278.45
- --------------------------------------------------------------------------------------------------------------------------------
11. Milbank, Tweed, Hadley & McCloy Attorney 11/23/98 126,508.46 126,508.46 1,175,266.95
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
12. TOTAL PAYMENTS TO PROFESSIONALS 165,845.97 165,845.97 4,605,760.20
- --------------------------------------------------------------------------------------------------------------------------------
</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> 9
<TABLE>
<CAPTION>
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 October 2, 1999
- --------------------------------------------------------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
INSURANCE YES NO
- --------------------------------------------------------------------------------------------------------------------------------
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.
<TABLE>
<CAPTION>
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
- -------------------------------------------------------------------------------------------------------------------
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. 7/21/99 through 7/21/00 - $60,000 paid in full
- --------------------------------------------------------------------------------------------------------------------------------
8/13/99
- --------------------------------------------------------------------------------------------------------------------------------
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. Final audits have been
completed for Pennsylvania, Indiana, Virginia, New York and
Kentucky, and the accounts have been closed.
<PAGE> 10
<TABLE>
<CAPTION>
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 October 2, 1999
- ----------------------------------------------------------------------------------------------------------------------------
PERSONNEL
- ----------------------------------------------------------------------------------------------------------------------------
FULL TIME PART TIME TOTAL
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Total number of employees at beginning of period 12 0 12
- ----------------------------------------------------------------------------------------------------------------------------
2. Number of employees hired during the period 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period (1) 0 (1)
- ----------------------------------------------------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period 11 0 11
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
CHANGE OF ADDRESS
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
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> 11
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
SEPTEMBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
SUMMARY OF BANK STATEMENT ACTIVITY
<PAGE> 12
<TABLE>
<S> <C> <C>
DEBTOR: MOR-4 SUPPORTING SCHEDULE CASE NO. 88-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
</TABLE>
<TABLE>
<CAPTION>
BANK BANKBOSTON NATIONAL CITY NATIONAL CITY NATIONAL CITY
ACCOUNT NAME BRF, INC. FOR
PROCEEDS FROM WORKERS
SUN TV & APPLIANCES CONCENTRATION COMPENSATION PAYROLL
ACCOUNT NUMBER 804-81979 394035037 3941035053 394035045
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BALANCE 8/28/99 1,174.86 86,431.70 20,109.51 32,025.11
MISCELLANEOUS CORPORATE DEPOSITS 2,413.87
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 (52,000.00)
WIRE TSF TO NCB A/CS - P/R, W/C, HEALTH INS, PROF FEES (62,045.43) 10,562.14 51,483.29
WIRE TSF FROM/TO SUN TV SEI INVESTMENT FUND 400,000.00
CHECKS PAID (315,999.89) (13,781.94) (10,057.26)
WIRES OUT - DIRECT DEP. & P/R TAX (44,020.93)
NSF CHECKS -
BANK/CREDIT CARD FEES - -
========================================================================
BALANCE 10/2/99 1,174.86 58,800.25 16,889.71 29,430.21
========================================================================
Beginning of month balance - all accounts 142,117.61
===================
End of month balance - all accounts 108,666.34
===================
</TABLE>
<TABLE>
<CAPTION>
BANK NATIONAL CITY THE OHIO BANK
ACCOUNT NAME
PROFESSIONAL STORE
FEES DEPOSITS
ACCOUNT NUMBER 394078205 7067480
- --------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCE 8/28/99 1,000.00 1,376.43
MISCELLANEOUS CORPORATE DEPOSITS
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
WIRE TSF TO NCB A/CS - P/R, W/C, HEALTH INS, PROF FEES
WIRE TSF FROM/TO SUN TV SEI INVESTMENT FUND
CHECKS PAID
WIRES OUT - DIRECT DEP. & P/R TAX
NSF CHECKS
BANK/CREDIT CARD FEES (5.12)
=================================
BALANCE 10/2/99 1,000.00 1,371.31
=================================
</TABLE>
<PAGE> 13
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
SEPTEMBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
DETAIL LISTING OF ACH AND WIRE TRANSFERS
<PAGE> 14
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS IN POSSESSION
CASE NO. 98-2107 AND 98-2109
FOR THE MONTH ENDING OCTOBER 2, 1999
(Covering the period August 29, 1999 through October 2, 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>
Payroll 9/9/99 ADP 20,336.38 ACH
Payroll 9/23/99 ADP 31,146.91 ACH
-----------------------
Total Payroll 51,483.29
-----------------------
Workers Comp 9/9/99 M&N Risk Management 3,355.61 ACH
Workers Comp 9/23/99 M&N Risk Management 7,206.53 ACH
-----------------------
Total Workers Compensation 10,562.14
-----------------------
Corporate Tax 9/29/99 Treasurer of State of Ohio 52,000.00 Wire
-----------------------
Total Corporate Tax 52,000.00
-----------------------
TOTAL WIRE AND ACH TRANSFERS $ 114,045.43
=======================
</TABLE>
1 of 1
<PAGE> 15
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
SEPTEMBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
DETAIL LISTING OF CHECKS WRITTEN
<PAGE> 16
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 8/29/99 THROUGH 10/2/99
(Associate payroll checks are not included)
<TABLE>
<CAPTION>
- --------------------------
Check Date
- --------------------------
YEAR MON DAY CHECK# PAYEE TYPE AMOUNT
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
99 9 20 713853 MAPSYS INC Consulting 560.00
99 9 20 713852 MELROSE CONSULTING Consulting 3,600.00
- -------------------------------------------------------------------------------------------------------------------------
Consulting 4,160.00
- -------------------------------------------------------------------------------------------------------------------------
99 9 2 713828 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 9 9 713831 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 9 16 713842 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 9 23 713857 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 9 30 713870 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
- -------------------------------------------------------------------------------------------------------------------------
Contract Labor 2,115.00
- -------------------------------------------------------------------------------------------------------------------------
99 9 27 713863 JAMES MORAN Employee Expense 958.74
99 9 30 713872 PATTY BALL Employee Expense 237.91
- -------------------------------------------------------------------------------------------------------------------------
Employee Expense 1,196.65
- -------------------------------------------------------------------------------------------------------------------------
99 8 30 713822 AMERITECH CREDIT CORPORATION Equipment Rental 18,715.37
99 9 30 713871 STAR LEASING CO Equipment Rental 14,155.42
- -------------------------------------------------------------------------------------------------------------------------
Equipment Rental 32,870.79
- -------------------------------------------------------------------------------------------------------------------------
99 9 24 713861 FORTIS INSURANCE CO. Insurance 865.55
- -------------------------------------------------------------------------------------------------------------------------
Insurance 865.55
- -------------------------------------------------------------------------------------------------------------------------
99 9 17 713844 IBM Maintenance 241.95
- -------------------------------------------------------------------------------------------------------------------------
Maintenance 241.95
- -------------------------------------------------------------------------------------------------------------------------
99 9 9 713832 BOWNE OF CLEVELAND INC Miscellaneous 1,952.15
99 9 20 713847 PAUL BAUER Miscellaneous 415.00
- -------------------------------------------------------------------------------------------------------------------------
Miscellaneous 2,367.15
- -------------------------------------------------------------------------------------------------------------------------
99 8 31 713825 AUTOMATIC DATA PROCESSING Payroll 829.03
99 9 15 713839 AUTOMATIC DATA PROCESSING Payroll 302.03
99 9 20 713846 AUTOMATIC DATA PROCESSING Payroll 36.70
99 9 29 713867 AUTOMATIC DATA PROCESSING Payroll 846.10
- -------------------------------------------------------------------------------------------------------------------------
Payroll 2,013.86
- -------------------------------------------------------------------------------------------------------------------------
99 9 15 713840 BUSINESS REGENERATION SERVICES Professional 16,689.20
99 9 20 713849 DONLIN RECANO & COMPANY, INC Professional 13,963.04
99 9 20 713850 ERNST & YOUNG LLP Professional 1,437.60
99 8 31 713826 MILBANK TWEED HADLEY & MCCLOY Professional 78,019.38
99 9 30 713873 MILBANK TWEED HADLEY & MCCLOY Professional 48,489.08
99 9 20 713848 OTTERBOURG STEINDLER HOUSTON & Professional 3,337.03
99 9 20 713851 PEPPER HAMILTON LLP Professional 737.83
99 9 28 713865 PEPPER HAMILTON LLP Professional 462.70
99 9 20 713854 PORTER WRIGHT MORRIS & ARTHUR Professional 2,710.11
- -------------------------------------------------------------------------------------------------------------------------
Professional 165,845.97
- -------------------------------------------------------------------------------------------------------------------------
99 8 30 713823 DUKE REALTY LIMITED PARTNERSHIP Rent 4,029.76
99 9 29 713868 DUKE REALTY LIMITED PARTNERSHIP Rent 4,029.76
- -------------------------------------------------------------------------------------------------------------------------
Rent 8,059.52
- -------------------------------------------------------------------------------------------------------------------------
99 9 10 713835 ENDLESS COMPUTER SUPPLY Supplies 90.89
- -------------------------------------------------------------------------------------------------------------------------
Supplies 90.89
- -------------------------------------------------------------------------------------------------------------------------
99 9 9 713833 MCGLONE INC Trash Removal 345.00
99 9 13 713837 MCGLONE INC Trash Removal 140.00
99 9 20 713855 MCGLONE INC Trash Removal 140.00
99 9 23 713858 MCGLONE INC Trash Removal 140.00
99 10 1 713876 MCGLONE INC Trash Removal 140.00
- -------------------------------------------------------------------------------------------------------------------------
Trash Removal 905.00
- -------------------------------------------------------------------------------------------------------------------------
99 9 24 713860 AMERITECH Utilities 27.69
99 9 9 713830 JADE INC Utilities 199.95
- -------------------------------------------------------------------------------------------------------------------------
Utilities 227.64
- -------------------------------------------------------------------------------------------------------------------------
TOTAL POST-PETITION CHECKS 220,959.97
==========
</TABLE>
1 of 1
<PAGE> 17
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
SEPTEMBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-5
PAYROLL TAXES
<PAGE> 18
<TABLE>
<CAPTION>
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 October 2, 1999
Deposit Federal Employee Employer
Date Income Tax FICA Tax FICA Tax Totals
----------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
14-Sep-99 $3,426.33 $1,104.19 $1,104.20 $5,634.72
28-Sep-99 $6,596.99 $1,340.79 $1,340.80 $9,278.58
----------------- ----------------- ----------------- -----------------
$10,023.32 $2,444.98 $2,445.00 $14,913.30
================= ================= ================= =================
</TABLE>
<PAGE> 19
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
SEPTEMBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-6
BANK RECONCILIATIONS
<PAGE> 20
<TABLE>
<CAPTION>
DEBTOR MOR-6 SUPPORTING SCHEDULE CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. SEPTEMBER BANK RECONCILIATIONS AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
A. BANK: THE OHIO BANK BANKBOSTON NATIONAL CITY NATIONAL CITY
B. ACCOUNT NUMBER: 7067480 804-81979 394035037 3941035053
C. PURPOSE (TYPE): STORE DEPOSITS BBRF PROCEEDS CONCENTRATION WORKERS COMP
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT 1,371.31 1,174.86 58,800.25 16,889.71
2. ADD: TOTAL DEPOSITS NOT CREDITED - - 16,729.20 8,268.39
3. ADD: OUTSTANDING WIRE TRANSFERS - - - -
4. SUBTRACT: OUTSTANDING CHECKS N/A N/A (228,536.02) (6,083.29)
5. SUBTRACT: OUTSTANDING WIRE TRANSFERS - - - -
6. OTHER RECONCILING ITEMS - - 585.87 -
7. ADJUSTED BANK BALANCE 1,371.31 1,174.86 (152,420.70) 19,074.81
8. MONTH END BALANCE PER BOOKS 1,371.31 - (148,129.11) 22,626.92
9. LESS: NSF CHECKS - - - -
10. LESS: BANK/CREDIT CARD FEES - - - -
11. ADD/(LESS): DEPOSIT DIFFERENCES - - - -
12. OTHER RECONCILING ITEMS (ATTACH LIST) - 1,174.86 (4,291.59) (3,552.11)
13. ADJUSTED BALANCE PER BOOKS 1,371.31 1,174.86 (152,420.70) 19,074.81
14. NUMBER OF LAST CHECK WRITTEN N/A N/A #713876 #7598
</TABLE>
1 of 2
<PAGE> 21
<TABLE>
<CAPTION>
DEBTOR MOR-6 SUPPORTING SCHEDULE CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. SEPTEMBER BANK RECONCILIATIONS AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
A. BANK: NATIONAL CITY NATIONAL CITY
B. ACCOUNT NUMBER: 394078205 394035045
C. PURPOSE (TYPE): PROF. FEES PAYROLL
<S> <C> <C>
1. BALANCE PER BANK STATEMENT 1,000.00 29,430.21
2. ADD: TOTAL DEPOSITS NOT CREDITED - -
3. ADD: OUTSTANDING WIRE TRANSFERS - -
4. SUBTRACT: OUTSTANDING CHECKS - (21,980.90)
5. SUBTRACT: OUTSTANDING WIRE TRANSFERS - -
6. OTHER RECONCILING ITEMS - -
7. ADJUSTED BANK BALANCE 1,000.00 7,449.31
8. MONTH END BALANCE PER BOOKS 1,000.00 (2,187.76)
9. LESS: NSF CHECKS - -
10. LESS: BANK/CREDIT CARD FEES - -
11. ADD/(LESS): DEPOSIT DIFFERENCES - -
12. OTHER RECONCILING ITEMS (ATTACH LIST) - 9,637.07
13. ADJUSTED BALANCE PER BOOKS 1,000.00 7,449.31
14. NUMBER OF LAST CHECK WRITTEN N/A #
</TABLE>
2 of 2
<PAGE> 22
DEBTOR CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-6 SUPPORTING SCHEDULE
SEPTEMBER BANK RECONCILIATIONS
OTHER RECONCILING ITEMS
OTHER RECONCILING ITEMS:
BANKBOSTON
804-81979
BBRF PROCEEDS
Other reconciling items - Book
-------------
Credit card adjustments 1,174.86
=============
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 (3,552.11)
-------------
(3,552.11)
=============
NATIONAL CITY
394035045
PAYROLL
Payroll transfer booked, not made until 10/7/99 9,679.27
Miscellaneous reconciling items (42.20)
-------------
9,637.07
=============
1 of 1
<PAGE> 1
<TABLE>
<CAPTION>
Exhibit 99.5
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 October 30, 1999
================================================================================================================================
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.
<TABLE>
<CAPTION>
RESPONSIBLE PARTY:
<S> <C>
/s/James T. Moran President
- -------------------------------------------------------------------- -------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
JAMES T. MORAN 12/15/99
- -------------------------------------------------------------------- -------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/Donna M. Zianni Assistant Controller
- -------------------------------------------------------------------- -------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
DONNA M. ZIANNI 12/15/99
- -------------------------------------------------------------------- -------------------------
PRINTED NAME OF PREPARER DATE
</TABLE>
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
<TABLE>
<CAPTION>
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 October 30, 1999
================================================================================================================================
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.
<TABLE>
<CAPTION>
RESPONSIBLE PARTY:
<S> <C>
President
- -------------------------------------------------------------------- -------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
JAMES T. MORAN
- -------------------------------------------------------------------- -------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
Assistant Controller
- -------------------------------------------------------------------- -------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
DONNA M. ZIANNI
- -------------------------------------------------------------------- -------------------------
PRINTED NAME OF PREPARER DATE
</TABLE>
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> 3
<TABLE>
<CAPTION>
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 October 30, 1999
COMPARATIVE BALANCE SHEET
(Unaudited)
- --------------------------------------------------------------------------------------------------------------------------
ASSETS Aug-99 Sep-99 Oct-99
----------------------------------------------------------------
28-Aug-99 02-Oct-99 30-Oct-99
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. CASH 15,917,125 15,704,174 15,412,182
- --------------------------------------------------------------------------------------------------------------------------
2. ACCOUNTS RECEIVABLE 1,608,840 1,543,475 1,609,553
- --------------------------------------------------------------------------------------------------------------------------
3. INVENTORY 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
4. NOTES RECEIVABLE 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
5. PREPAID EXPENSES 836,576 835,606 849,321
- --------------------------------------------------------------------------------------------------------------------------
6. OTHER (CREDIT CARD RESERVES) 2,461,426 2,461,426 2,461,426
- --------------------------------------------------------------------------------------------------------------------------
7. TOTAL CURRENT ASSETS 20,823,967 20,544,681 20,332,482
- --------------------------------------------------------------------------------------------------------------------------
8. PROPERTY, PLANT & EQUIPMENT, net 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
9. ASSETS HELD FOR SALE 27,376 26,721 26,696
- --------------------------------------------------------------------------------------------------------------------------
10. TOTAL PROPERTY, PLANT & EQUIP 27,376 26,721 26,696
- --------------------------------------------------------------------------------------------------------------------------
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 20,851,343 20,571,402 20,359,178
- -------------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
- --------------------------------------------------------------------------------------------------------------------------
15. ACCOUNTS PAYABLE & ACCRUALS 959,442 954,144 863,472
- --------------------------------------------------------------------------------------------------------------------------
16. TAXES PAYABLE 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
17. NOTES PAYABLE 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
18. PROFESSIONAL FEES 643,757 566,170 714,353
- --------------------------------------------------------------------------------------------------------------------------
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 1,603,199 1,520,314 1,577,825
- --------------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
- --------------------------------------------------------------------------------------------------------------------------
23. SECURED DEBT 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
24. PRIORITY DEBT 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
25. UNSECURED DEBT 57,317,640 57,307,078 57,260,340
- --------------------------------------------------------------------------------------------------------------------------
26. OTHER 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
27. TOTAL PREPETITION LIABILITIES 57,317,640 57,307,078 57,260,340
- --------------------------------------------------------------------------------------------------------------------------
28. TOTAL LIABILITIES 58,920,839 58,827,392 58,838,165
- --------------------------------------------------------------------------------------------------------------------------
EQUITY
- --------------------------------------------------------------------------------------------------------------------------
29. PREPETITION OWNERS' EQUITY (1,334,175) (1,334,175) (1,334,175)
- --------------------------------------------------------------------------------------------------------------------------
30. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) (36,735,321) (36,921,815) (37,144,812)
- --------------------------------------------------------------------------------------------------------------------------
31. TOTAL EQUITY (DEFICIT) (38,069,496) (38,255,990) (38,478,987)
- --------------------------------------------------------------------------------------------------------------------------
32. TOTAL LIABILITIES &
OWNERS' EQUITY 20,851,343 20,571,402 20,359,178
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTES FOR MONTH ENDING OCTOBER 30, 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> 4
<TABLE>
<CAPTION>
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 October 30, 1999
INCOME STATEMENT
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------------------
REVENUES Aug-99 Sep-99 Oct-99
--------------------------------------------------------------
28-Aug-99 02-Oct-99 30-Oct-99
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. GROSS REVENUES 12,964 1,799 3,959
- -------------------------------------------------------------------------------------------------------------------------------
2. COST OF GOODS SOLD 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
3. GROSS PROFIT 12,964 1,799 3,959
- -------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
- -------------------------------------------------------------------------------------------------------------------------------
4. Payroll 38,348 62,771 30,290
- -------------------------------------------------------------------------------------------------------------------------------
5. Payroll Taxes 2,171 3,467 2,317
- -------------------------------------------------------------------------------------------------------------------------------
6. Employee Benefits (108) 321 (332)
- -------------------------------------------------------------------------------------------------------------------------------
7. Depreciation and Amortization 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
8. Occupancy Costs 223 4,935 4,320
- -------------------------------------------------------------------------------------------------------------------------------
9. Advertising (20,054) 0 0
- -------------------------------------------------------------------------------------------------------------------------------
10. Store Delivery 0 (7,678) 0
- -------------------------------------------------------------------------------------------------------------------------------
11. Home Delivery 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
12. Financing Costs 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
13. Equipment Rental 21,673 18,715 21,673
- -------------------------------------------------------------------------------------------------------------------------------
14. Outsource Services 1,692 2,115 1,692
- -------------------------------------------------------------------------------------------------------------------------------
15. Taxes 0 52,000 112
- -------------------------------------------------------------------------------------------------------------------------------
16. Insurance 21,029 5,000 5,457
- -------------------------------------------------------------------------------------------------------------------------------
17. Legal and Professional 16,759 8,541 2,642
- -------------------------------------------------------------------------------------------------------------------------------
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) 4,021 3,767 2,084
- -------------------------------------------------------------------------------------------------------------------------------
22. TOTAL OPERATING EXPENSES 85,754 153,954 70,255
- -------------------------------------------------------------------------------------------------------------------------------
23. OPERATING INCOME (72,790) (152,155) (66,296)
- -------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
- -------------------------------------------------------------------------------------------------------------------------------
24. OTHER INCOME - Interest 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
25. OTHER EXPENSES (ATTACH LIST) 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
26. INTEREST EXPENSE 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
27. OTHER - Loss (gain) on sale of assets 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
28. NET OTHER INCOME & EXPENSES 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
29. LOSS BEFORE REORGANIZATION EXPENSES, TAXES AND EXTRAORDINARY ITEM (72,790) (152,155) (66,296)
- -------------------------------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
- -------------------------------------------------------------------------------------------------------------------------------
30. PROFESSIONAL FEES 118,947 98,259 213,869
- -------------------------------------------------------------------------------------------------------------------------------
31. U.S. TRUSTEE FEES 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
32. INTEREST INCOME (65,365) (63,920) (66,078)
- -------------------------------------------------------------------------------------------------------------------------------
33. OTHER (ATTACH LIST) 0 0 8,910
- -------------------------------------------------------------------------------------------------------------------------------
34. TOTAL REORGANIZATION EXPENSES 53,582 34,339 156,701
- -------------------------------------------------------------------------------------------------------------------------------
35. INCOME TAX 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
36. LOSS BEFORE EXTRAORDINARY ITEM (126,372) (186,494) (222,997)
- -------------------------------------------------------------------------------------------------------------------------------
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 (126,372) (186,494) (222,997)
- -------------------------------------------------------------------------------------------------------------------------------
NOTES FOR MONTH ENDING OCTOBER 30, 1999:
ITEM 21: Primarily consists of telephone, repairs/maintenance, supplies, employee expenses and bank fees.
ITEM 33: Represents postage costs for mailings to creditors
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
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 October 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
CASH RECEIPTS AND Aug-99 Sep-99 Oct-99
-------------------------------------------------------------
DISBURSEMENTS 28-Aug-99 02-Oct-99 30-Oct-99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 CASH-BEGINNING OF MONTH 17,547,144.16 16,240,925.59 15,936,759.32
- -----------------------------------------------------------------------------------------------------------------------------------
RECEIPTS
- -----------------------------------------------------------------------------------------------------------------------------------
2. CASH SALES 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
3. COLLECTION OF ACCOUNTS RECEIVABLE 0.00 0.00 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 25,441.69 66,333.50 20,712.63
- -----------------------------------------------------------------------------------------------------------------------------------
7. TOTAL RECEIPTS 25,441.69 66,333.50 20,712.63
- -----------------------------------------------------------------------------------------------------------------------------------
8. TOTAL CASH AVAILABLE 17,572,585.85 16,307,259.09 15,957,471.95
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT MONTH DISBURSEMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
28-Aug-99 02-Oct-99 30-Oct-99
- -----------------------------------------------------------------------------------------------------------------------------------
PURPOSE AMOUNT AMOUNT AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
9. BANK FEES AND DEBT PAYDOWN 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
10. ADVERTISING 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
11. MERCHANDISE/PARTS 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
12. PAYROLL 40,763.34 53,497.15 29,180.66
- -----------------------------------------------------------------------------------------------------------------------------------
13. STORE / OFFICE RENT 0.00 8,059.52 4,029.76
- -----------------------------------------------------------------------------------------------------------------------------------
14. EQUIPMENT RENT 2,958.12 32,870.79 40,388.86
- -----------------------------------------------------------------------------------------------------------------------------------
15. CONSTRUCTION 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
16. EMPLOYEE EXPENSES/UNIFORMS 2,883.16 1,196.65 1,143.25
- -----------------------------------------------------------------------------------------------------------------------------------
17. FREIGHT/POSTAGE 0.00 0.00 8,910.00
- -----------------------------------------------------------------------------------------------------------------------------------
18. GASOLINE 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
19. HOTEL/AIR FARE 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
20. INSURANCE 60,573.64 865.55 457.00
- -----------------------------------------------------------------------------------------------------------------------------------
21. WORKERS COMPENSATION 12,638.35 10,562.14 46,737.29
- -----------------------------------------------------------------------------------------------------------------------------------
22. 401 K 0.00 0.00 1,594.10
- -----------------------------------------------------------------------------------------------------------------------------------
23. MISCELLANEOUS 0.00 2,367.15 14.00
- -----------------------------------------------------------------------------------------------------------------------------------
24. GARNISHMENTS 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
25. SUPPLIES/MAINTENANCE 0.00 332.84 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
26. CUSTOMER REFUNDS 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
27. SECURITY 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
28. TAXES 0.00 52,000.00 112.00
- -----------------------------------------------------------------------------------------------------------------------------------
29. TEMPORARY HELP SERVICES 1,692.00 2,115.00 1,692.00
- -----------------------------------------------------------------------------------------------------------------------------------
30. UTILITIES 199.95 227.64 214.00
- -----------------------------------------------------------------------------------------------------------------------------------
31. WASTE REMOVAL 0.00 905.00 150.00
- -----------------------------------------------------------------------------------------------------------------------------------
32. CONSULTING 16,136.00 4,160.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
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 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
37. Reimbursement to BankBoston for overpayment 0.00 0.00 82,708.21
- -----------------------------------------------------------------------------------------------------------------------------------
38. U.S. TRUSTEE FEES 0.00 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
39. PROFESSIONAL FEES 324,839.13 165,845.97 75,685.58
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
40. TOTAL DISBURSEMENTS 462,683.69 335,005.40 293,016.71
- -----------------------------------------------------------------------------------------------------------------------------------
41. END OF MONTH BALANCE 16,240,925.59 15,936,759.32 15,605,622.73
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ITEMS 1 & 41: Beginning and Ending Cash balances reflect balances per
bank statements.
ITEM 6: Consists of various miscellaneous corporate deposits and interest
ITEMS 9 - 40: Disbursements reflect wire and/or ACH transfers and checks written
during the period October 3, 1999 through October 30, 1999.
<PAGE> 6
<TABLE>
<CAPTION>
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 October 30, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE AGING
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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) 577,825.00 0.00 0.00 1,000,000.00 1,577,825.00
- ------------------------------------------------------------------------------------------------------------------------------------
</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>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
STATUS OF POST PETITION TAXES
===================================================================================================================================
BEGINNING WITHHELD ENDING
TAX AND/OR AMOUNT TAX DELINQUENT
LIABILITY ACCRUED PAID LIABILITY TAXES
===================================================================================================================================
<S> <C> <C> <C> <C>
FEDERAL
- ------------------------------------------------------------------------------------------------------------------------------------
WITHHOLDING** 0.00 3,505.66 3,505.66 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
FICA-EMPLOYEE** 0.00 2,022.81 2,022.81 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
FICA-EMPLOYER** 0.00 2,022.80 2,022.80 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
UNEMPLOYMENT 0.00 0.00 0.00 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 7,551.27 7,551.27 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
- ------------------------------------------------------------------------------------------------------------------------------------
WITHHOLDING 0.00 1,411.12 1,411.12 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 0.00 0.00 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 1,411.12 1,411.12 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL TAXES 0.00 8,962.39 8,962.39 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> 7
<TABLE>
<CAPTION>
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 October 30, 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.
- ---------------------------------------------------------
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 October 1999 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 1,242,898.49 1,242,898.49
- ----------------------------------------------------------------------------------------------------------------------------------
8. NatCity Investments - 509394035 12/31/98 Govt Money Market 14,285,194.49 14,285,194.49
- ----------------------------------------------------------------------------------------------------------------------------------
9.
- ----------------------------------------------------------------------------------------------------------------------------------
10.
- ----------------------------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS 15,528,092.98 15,528,092.98
- ----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------
CASH
- ----------------------------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND - per the Company's Bank Statements 77,529.75
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
13. TOTAL CASH-END OF MONTH (Total of lines 5, 11, & 12) 15,605,622.73
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
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 October 30, 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.
- --------------------------------------------------------------------------------------------------------------------------------
INSIDERS CUMULATIVE
- ----------------------------------------------------------------------------------------------------------
TYPE OF AMOUNT UNPAID
NAME POSITION PAYMENT PAID BALANCE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. JAMES MORAN President expenses $1,143.25
- --------------------------------------------------------------------------------------------------------------------------------
2. TOTAL PAYMENTS TO INSIDERS $1,143.25 $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 5,681.60 5,681.60 958,044.67
- ---------------------------------------------------------------------------------------------------------------------------------
3. KPMG Peat Marwick LLP Accountant 09/16/98 0.00 0.00 101,451.40
- ---------------------------------------------------------------------------------------------------------------------------------
4. Otterbourg, Steindler, Houston & Attorney 09/16/98 3,707.16 3,707.16 501,846.40
- ---------------------------------------------------------------------------------------------------------------------------------
5. Porter, Wright, Morris & Arthur Attorney 09/16/98 1,759.97 1,759.97 121,474.67
- ---------------------------------------------------------------------------------------------------------------------------------
6. Young, Conaway, Stargatt & Attorney 09/16/98 0.00 0.00 208,946.91
- ---------------------------------------------------------------------------------------------------------------------------------
7. Donlin, Recano & Company, Inc. Claims Consultant 09/16/98 14,682.75 14,682.75 593,890.91
- ---------------------------------------------------------------------------------------------------------------------------------
8. Ernst & Young LLP Accountant 09/16/98 3,046.40 3,046.40 428,629.20
- ---------------------------------------------------------------------------------------------------------------------------------
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 22,278.45
- ---------------------------------------------------------------------------------------------------------------------------------
11. Milbank, Tweed, Hadley & McCloy Attorney 11/23/98 46,807.70 46,807.70 1,222,074.65
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
12. TOTAL PAYMENTS TO PROFESSIONALS 75,685.58 75,685.58 4,681,445.78
- ---------------------------------------------------------------------------------------------------------------------------------
</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> 9
<TABLE>
<CAPTION>
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 October 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------
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.
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
INSURANCE YES NO
- -----------------------------------------------------------------------------------------------------------------------------
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.
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INSURANCE POLICIES
- ------------------------------------------------------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Commercial Property & Casualty Cincinnati Insurance Co 10/1/99 through 9/30/00 - $457 paid 10/15/99
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Directors & Officers Liability Genesis Insurance Co. 7/21/99 through 7/21/00 - $60,000 paid in full
- ------------------------------------------------------------------------------------------------------------------------------
8/13/99
- ------------------------------------------------------------------------------------------------------------------------------
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. Final audits have been completed for Pennsylvania,
Indiana, Virginia, New York and Kentucky, and the accounts
have been closed.
<PAGE> 10
<TABLE>
<CAPTION>
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 October 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
PERSONNEL
- -----------------------------------------------------------------------------------------------------------------------------------
FULL TIME PART TIME TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Total number of employees at beginning of period 11 0 11
- -----------------------------------------------------------------------------------------------------------------------------------
2. Number of employees hired during the period 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period 11 0 11
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
CHANGE OF ADDRESS
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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> 11
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
OCTOBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
SUMMARY OF BANK STATEMENT ACTIVITY
<PAGE> 12
<TABLE>
<CAPTION>
DEBTOR: MOR-4 SUPPORTING SCHEDULE CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
BANK BANKBOSTON NATIONAL CITY NATIONAL CITY
ACCOUNT NAME BRF, INC. FOR
PROCEEDS FROM WORKERS
SUN TV & APPLIANCES CONCENTRATION COMPENSATION
ACCOUNT NUMBER 804-81979 394035037 3941035053
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BALANCE 10/2/99 1,174.86 58,800.25 16,889.71
MISCELLANEOUS CORPORATE DEPOSITS 20,712.63
TRANSFERS TO/FROM BANKBOSTON A/C 898-28038 - -
WIRE TSF TO SUN TV CONCENTRATION ACCOUNT - -
WIRE TSF TO VENDORS (82,708.21)
WIRE TSF TO NCB A/CS - P/R, W/C, HEALTH INS, PROF FEES (65,998.67) 37,866.37
WIRE TSF FROM/TO SUN TV SEI INVESTMENT FUND 300,000.00
CHECKS PAID (206,472.95) (33,823.33)
WIRES OUT - DIRECT DEP. & P/R TAX
NSF CHECKS -
BANK/CREDIT CARD FEES - (705.13)
===================================================================
BALANCE 10/30/99 1,174.86 23,627.92 20,932.75
===================================================================
Beginning of month balance - all accounts 08,666.34
================
End of month balance - all accounts 77,529.75
================
</TABLE>
<TABLE>
<CAPTION>
DEBTOR: MOR-4 SUPPORTING SCHEDULE CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
BANK NATIONAL CITY NATIONAL CITY THE OHIO BANK
ACCOUNT NAME
PROFESSIONAL STORE
PAYROLL FEES DEPOSITS
ACCOUNT NUMBER 394035045 394078205 7067480
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BALANCE 10/2/99 29,430.21 1,000.00 1,371.31
MISCELLANEOUS CORPORATE DEPOSITS
TRANSFERS TO/FROM BANKBOSTON A/C 898-28038
WIRE TSF TO SUN TV CONCENTRATION ACCOUNT
WIRE TSF TO VENDORS
WIRE TSF TO NCB A/CS - P/R, W/C, HEALTH INS, PROF FEES 28,132.30
WIRE TSF FROM/TO SUN TV SEI INVESTMENT FUND
CHECKS PAID (6,630.42)
WIRES OUT - DIRECT DEP. & P/R TAX (21,501.88)
NSF CHECKS
BANK/CREDIT CARD FEES (7.30)
================================================================
BALANCE 10/30/99 29,430.21 1,000.00 1,364.01
================================================================
Beginning of month balance - all accounts
End of month balance - all accounts
</TABLE>
<PAGE> 13
SUN TELEVISION AND APPLIANCES, INC.
SUN TV APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
OCTOBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
DETAIL LISTING OF ACH AND WIRE TRANSFERS
<PAGE> 14
<TABLE>
<CAPTION>
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS IN POSSESSION
CASE NO. 98-2107 AND 98-2109
FOR THE MONTH ENDING OCTOBER 30, 1999
(Covering the period October 3, 1999 through October 30,
1999)
MOR-4 SUPPORTING SCHEDULE
SUMMARY OF ACH AND WIRE TRANSFERS DURING PERIOD
Type Date Vendor Amount ACH/Wire
---- ---- ------ ------ --------
<S> <C> <C> <C> <C>
Payroll 10/7/99 ADP 14,209.30 ACH
Payroll 10/22/99 ADP 13,923.00 ACH
-----------------------
Total Payroll 28,132.30
-----------------------
Workers Comp 10/7/99 M&N Risk Management 24,415.08 ACH
Workers Comp 10/21/99 M&N Risk Management 13,451.29 ACH
-----------------------
Total Workers Compensation 37,866.37
-----------------------
Refund 10/7/99 BankBoston Retail Finance 67,090.94 Wire
Refund 10/20/99 BankBoston Retail Finance 15,617.27 Wire
-----------------------
Total Refund 82,708.21
-----------------------
TOTAL WIRE AND ACH TRANSFERS $ 148,706.88
=======================
</TABLE>
1 of 1
<PAGE> 15
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
OCTOBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-4
DETAIL LISTING OF CHECKS WRITTEN
<PAGE> 16
<TABLE>
<CAPTION>
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 10/3/99 THROUGH 10/30/99
(Associate payroll checks are not included)
- --------------------------
Check Date
- --------------------------
YEAR MON DAY CHECK# PAYEE TYPE AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
99 10 28 713917 MERRILL LYNCH, PIERCE, FENNER & 401K Administration 1,594.10
- -----------------------------------------------------------------------------------------------------------------------
401K Administration 1,594.10
- -----------------------------------------------------------------------------------------------------------------------
99 10 7 713883 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 10 14 713892 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 10 21 713901 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
99 10 28 713918 MILLER'S TOTAL CLEANING PLUS Contract Labor 423.00
- -----------------------------------------------------------------------------------------------------------------------
Contract Labor 1,692.00
- -----------------------------------------------------------------------------------------------------------------------
99 10 25 713910 DELAWARE SECRETARY OF STATE Corporate Tax 112.00
- -----------------------------------------------------------------------------------------------------------------------
Corporate Tax 112.00
- -----------------------------------------------------------------------------------------------------------------------
99 10 15 713896 JAMES MORAN Employee Expense 1,143.25
- -----------------------------------------------------------------------------------------------------------------------
Employee Expense 1,143.25
- -----------------------------------------------------------------------------------------------------------------------
99 10 4 713878 AMERITECH CREDIT CORPORATION Equipment Rental 18,715.37
99 10 28 713915 AMERITECH CREDIT CORPORATION Equipment Rental 18,715.37
99 10 14 713893 EUROPEAN AMERICAN BANK Equipment Rental 2,958.12
- -----------------------------------------------------------------------------------------------------------------------
Equipment Rental 40,388.86
- -----------------------------------------------------------------------------------------------------------------------
99 10 15 713897 ACORDIA/MCELROY-MINISTER Insurance 457.00
- -----------------------------------------------------------------------------------------------------------------------
Insurance 457.00
- -----------------------------------------------------------------------------------------------------------------------
99 10 26 713912 QUIKPRO COURIER Miscellaneous 14.00
- -----------------------------------------------------------------------------------------------------------------------
Miscellaneous 14.00
- -----------------------------------------------------------------------------------------------------------------------
99 10 13 713890 AUTOMATIC DATA PROCESSING Payroll 251.92
99 10 21 713900 AUTOMATIC DATA PROCESSING Payroll 93.64
99 10 28 713914 AUTOMATIC DATA PROCESSING Payroll 702.80
- -----------------------------------------------------------------------------------------------------------------------
Payroll 1,048.36
- -----------------------------------------------------------------------------------------------------------------------
99 10 6 713881 APPLE DIRECT MAIL SERVICES LTD Postage 8,910.00
- -----------------------------------------------------------------------------------------------------------------------
Postage 8,910.00
- -----------------------------------------------------------------------------------------------------------------------
99 10 11 713885 BUSINESS REGENERATION SERVICES Professional 5,681.60
99 10 11 713887 DONLIN RECANO & COMPANY, INC Professional 14,682.75
99 10 11 713888 ERNST & YOUNG LLP Professional 3,046.40
99 10 15 713898 MILBANK TWEED HADLEY & MCCLOY Professional 46,807.70
99 10 11 713886 OTTERBOURG STEINDLER HOUSTON & Professional 3,707.16
99 10 22 713905 PORTER WRIGHT MORRIS & ARTHUR Professional 1,759.97
- -----------------------------------------------------------------------------------------------------------------------
Professional 75,685.58
- -----------------------------------------------------------------------------------------------------------------------
99 10 28 713916 DUKE REALTY LIMITED PARTNERSHIP Rent 4,029.76
- -----------------------------------------------------------------------------------------------------------------------
Rent 4,029.76
- -----------------------------------------------------------------------------------------------------------------------
99 10 25 713908 MCGLONE INC Trash Removal 150.00
- -----------------------------------------------------------------------------------------------------------------------
Trash Removal 150.00
- -----------------------------------------------------------------------------------------------------------------------
99 10 15 713895 AMERITECH Utilities 14.05
99 10 6 713880 JADE INC Utilities 199.95
- -----------------------------------------------------------------------------------------------------------------------
Utilities 214.00
- -----------------------------------------------------------------------------------------------------------------------
99 10 22 713904 M & N RISK MANAGEMENT INC Workers' Comp 7,325.00
99 10 22 713903 THE PMA GROUP Workers' Comp 1,545.92
- -----------------------------------------------------------------------------------------------------------------------
Workers' Comp 8,870.92
- -----------------------------------------------------------------------------------------------------------------------
TOTAL POST-PETITION CHECKS 144,309.83
==========
</TABLE>
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<PAGE> 17
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
OCTOBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-5
PAYROLL TAXES
<PAGE> 18
<TABLE>
<CAPTION>
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 October 30, 1999
Deposit Federal Employee Employer
Date Income Tax FICA Tax FICA Tax Totals
================= ================= ================= ================= =================
<S> <C> <C> <C> <C>
13-Oct-99 $1,772.78 $1,021.56 $1,021.57 $3,815.91
26-Oct-99 $1,732.88 $1,001.25 $1,001.23 $3,735.36
----------------- ----------------- ----------------- -----------------
$3,505.66 $2,022.81 $2,022.80 $7,551.27
================= ================= ================= =================
</TABLE>
<PAGE> 19
SUN TELEVISION AND APPLIANCES, INC.
SUN TV AND APPLIANCES, INC.
DEBTORS-IN-POSSESSION
CASE NO. 98-2107 AND 98-2109
OCTOBER 1999 MONTHLY OPERATING REPORT
SUPPORTING SCHEDULES FOR MOR-6
BANK RECONCILIATIONS
<PAGE> 20
<TABLE>
<CAPTION>
Debtor: MOR-6 Supporting Schedule Case No. 98-02107
Sun Television and Appliances, Inc. October Bank Reconciliations and 98-02109
Sun TV and Appliances, Inc. Jointly Administered
A. BANK: THE OHIO BANK BANKBOSTON NATIONAL CITY NATIONAL CITY
B. ACCOUNT NUMBER: 7067480 804-81979 394035037 3941035053
C. PURPOSE (TYPE): STORE DEPOSITS BBRF PROCEEDS CONCENTRATION WORKERS COMP
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT 1,364.01 1,174.86 23,627.92 20,932.75
2. ADD: TOTAL DEPOSITS NOT CREDITED - - - 12,420.53
3. ADD: OUTSTANDING WIRE TRANSFERS - - - -
4. SUBTRACT: OUTSTANDING CHECKS N/A N/A (166,372.90) (14,278.67))
5. SUBTRACT: OUTSTANDING WIRE TRANSFERS - - - -
6. OTHER RECONCILING ITEMS - - 585.87 -
7. ADJUSTED BANK BALANCE 1,364.01 1,174.86 (142,159.11) 19,074.61
8. MONTH END BALANCE PER BOOKS 1,364.01 - (137,867.52) 22,626.92 )
9. LESS: NSF CHECKS - - - -
10. LESS: BANK/CREDIT CARD FEES - - - -
11. ADD/(LESS): DEPOSIT DIFFERENCES - - - -
12. OTHER RECONCILING ITEMS (ATTACH LIST) - 1,174.86 (4,291.59) (3,552.31)
13. ADJUSTED BALANCE PER BOOKS 1,364.01 1,174.86 (142,159.11) 19,074.61
14. NUMBER OF LAST CHECK WRITTEN N/A N/A #713918 #7643
</TABLE>
1 of 2
<PAGE> 21
<TABLE>
<CAPTION>
Debtor: MOR-6 Supporting Schedule Case No. 98-02107
Sun Television and Appliances, Inc. October Bank Reconciliations and 98-02109
Sun TV and Appliances, Inc. Jointly Administered
A. BANK: NATIONAL CITY NATIONAL CITY
B. ACCOUNT NUMBER: 394078205 394035045
C. PURPOSE (TYPE): PROF. FEES PAYROLL
<S> <C> <C>
1. BALANCE PER BANK STATEMENT 1,000.00 29,430.21
2. ADD: TOTAL DEPOSITS NOT CREDITED - -
3. ADD: OUTSTANDING WIRE TRANSFERS - -
4. SUBTRACT: OUTSTANDING CHECKS - (21,980.90)
5. SUBTRACT: OUTSTANDING WIRE TRANSFERS - -
6. OTHER RECONCILING ITEMS - -
7. ADJUSTED BANK BALANCE 1,000.00 7,449.31
8. MONTH END BALANCE PER BOOKS 1,000.00 (4,434.02)
9. LESS: NSF CHECKS - -
10. LESS: BANK/CREDIT CARD FEES - -
11. ADD/(LESS): DEPOSIT DIFFERENCES - -
12. OTHER RECONCILING ITEMS (ATTACH LIST) - 11,883.33
13. ADJUSTED BALANCE PER BOOKS 1,000.00 7,449.31
14. NUMBER OF LAST CHECK WRITTEN N/A #
</TABLE>
2 of 2
<PAGE> 22
DEBTOR CASE NO. 98-02107
SUN TELEVISION AND APPLIANCES, INC. AND 98-02109
SUN TV AND APPLIANCES, INC. JOINTLY ADMINISTERED
MOR-6 SUPPORTING SCHEDULE
OCTOBER BANK RECONCILIATIONS
OTHER RECONCILING ITEMS
OTHER RECONCILING ITEMS:
BANKBOSTON
804-81979
BBRF PROCEEDS
Other reconciling items - Book
-----------
Credit card adjustments 1,174.86
===========
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 (3,552.11)
-----------
(3,552.11)
===========
NATIONAL CITY
394035045
PAYROLL
Payroll transfer booked, not made until 11/4/99 11,925.53
Miscellaneous reconciling items (42.20)
-----------
11,883.33
===========
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