<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 30, 1997
MOBILEMEDIA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-26320 22-3253006
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
65 Challenger Road, Ridgefield Park, New Jersey 07660
(Address of principal executive offices)
(Zip Code)
(201) 440-8400
(Registrant's telephone number, including area code)
--------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 1. Changes in Control of Registrant
Not Applicable.
Item 2. Acquisition or Disposition of Assets.
Not Applicable.
Item 3. Bankruptcy or Receivership
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable.
Item 5. Other Events.
On October 30, 1997, MobileMedia Corporation (the
"Company"), MobileMedia Communications, Inc. ("MobileMedia
Communications") and all of the subsidiaries of MobileMedia
Communications filed with the United States Bankruptcy Court for the
District of Delaware (the "Bankruptcy Court") their monthly operating
report for the month ended September 30, 1997, which is attached hereto
as Exhibit 99.1.
Item 6. Resignations of Registrants Directors.
Not Applicable
Item 7. Financial Statements and Exhibits.
Not Applicable
Item 8. Change in Fiscal Year.
Not Applicable
<PAGE>
Pursuant to the requirements of the Securities Exchange
Act of 1934, as amended, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly
authorized.
MOBILEMEDIA CORPORATION
a Delaware corporation
Date: November 7, 1997 By: /s/ David R. Gibson
---------------------
David R. Gibson
Senior Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit Page
- ------- ----
Exhibit 99.1 -- Monthly Operating Report
<PAGE>
EXHIBIT 99.1
OFFICE OF THE U.S. TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
FOR THE MONTH ENDED SEPTEMBER 30, 1997
DEBTOR NAME: MOBILEMEDIA CORPORATION ET AL.
CASE NUMBER: 97-174 (PJW)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
DOCUMENT PREVIOUSLY EXPLANATION
REQUIRED ATTACHMENTS: ATTACHED SUBMITTED ATTACHED
<S> <C> <C> <C>
1. Tax Receipts ( ) (X) (X)
2. Bank Statements ( ) ( ) (X)
3. Most recently filed Income Tax Return ( ) (X) ( )
4. Most recent Annual Financial Statements ( ) (X) ( )
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 AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE
DOCUMENTS ARE TRUE, CORRECT AND COMPLETE.
RESPONSIBLE PARTY:
/s/ David R. Gibson SENIOR VICE PRESIDENT/CHIEF FINANCIAL OFFICER
- -------------------------------- ---------------------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
DAVID R. GIBSON OCTOBER 29, 1997
- --------------------------------- --------------------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
Page 1 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
ATTACHMENT
FOR THE MONTH ENDED SEPTEMBER 30, 1997
DEBTOR NAME: MOBILEMEDIA CORPORATION ET AL.
CASE NUMBER: 97-174 (PJW)
- -------------------------------------------------------------------------------
1. Payroll tax filings and payments are made by Automated Data Processing,
Inc. (an outside payroll processing company). Evidence of tax payments are
available upon request. Previously, the Debtors filed copies of such
evidence for the third quarter of 1996 with the US Trustee.
Please see the Status of Post Petition Taxes attached hereto for the
month's activity.
2. The Debtors have 63 bank accounts. In order to minimize costs to the
estate, the Debtors have included a GAAP basis Statement of Cash Flows in
the Monthly Operating Report. The Statement of Cash Flows replaces the
listing of cash receipts and disbursements, copies of the bank statements,
and bank account reconciliations.
Page 2 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
FOR THE MONTH ENDED SEPTEMBER 30, 1997
DEBTOR NAME: MOBILEMEDIA CORPORATION ET AL.
CASE NUMBER: 97-174 (PJW)
- -------------------------------------------------------------------------------
See Statement of Operations for reporting period attached.
Page 3 of 18
<PAGE>
HEADNOTES:
THESE FINANCIAL STATEMENTS HAVE NOT BEEN PREPARED IN ACCORDANCE WITH GAAP
BECAUSE STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 121, "ACCOUNTING FOR THE
IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS, TO BE DISPOSED OF"
("SFAS 121") HAS NOT BEEN APPLIED. UPON THE APPLICATION OF SFAS 121, THE COMPANY
EXPECTS TO BE REQUIRED TO WRITE DOWN THE CARRYING VALUE OF ITS LONG-LIVED ASSETS
TO THEIR FAIR VALUE. THE COMPANY BELIEVES THE AMOUNT OF THE WRITE-DOWN WILL BE
MATERIAL; HOWEVER, IT IS NOT POSSIBLE AT THIS TIME TO DETERMINE SUCH AMOUNT.
THERE MAY ALSO BE ADJUSTMENTS TO CERTAIN OTHER ACCOUNTS AS A RESULT OF THE
DEBTORS' FILING FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ON
JANUARY 30, 1997.
(1) OPERATING EXPENSE AND EBITDA FOR SEPTEMBER 1997 INCLUDES THE FAVORABLE
IMPACT OF A $2.1 MILLION REVERSAL OF PREVIOUSLY RECORDED 1997 TELEPHONE EXPENSE
ACCRUALS.
MOBILEMEDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE MONTHS ENDED SEPTEMBER 30, 1997, AUGUST, 31, 1997 AND JULY 31, 1997
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
SEPTEMBER AUGUST JULY
1997 1997 1997
--------------- -------------- -------------
<S> <C> <C> <C>
PAGING REVENUES
SERVICE, RENTS & MAINTENANCE $39,635 $40,387 $41,481
EQUIPMENT SALES
PRODUCT SALES 2,743 3,388 4,055
COST OF PRODUCTS SOLD 2,731 3,512 4,333
--------------- -------------- -------------
EQUIPMENT MARGIN 13 (124) (278)
NET REVENUE 39,648 40,262 41,203
OPERATING EXPENSE
SERVICE, RENTS & MAINTENANCE 10,981 12,165 12,992
SELLING 5,187 5,409 6,019
GENERAL & ADMINISTRATIVE 14,608 14,560 15,053
--------------- -------------- -------------
OPERATING EXPENSE BEFORE DEPR. & AMORT. 30,776 (1) 32,134 34,064
EBITDA BEFORE REORGANIZATION COSTS 8,872 (1) 8,128 7,139
REORGANIZATION COSTS 1,522 1,320 1,784
--------------- -------------- -------------
EBITDA AFTER REORGANIZATION COSTS 7,350 (1) 6,808 5,355
DEPRECIATION 8,617 8,761 8,334
AMORTIZATION 9,245 9,245 9,246
--------------- -------------- -------------
TOTAL DEPRECIATION AND AMORTIZATION 17,862 18,007 17,580
OPERATING LOSS (10,512) (11,199) (12,225)
INTEREST EXPENSE 5,219 5,379 5,465
OTHER EXPENSE (0) (2) (1)
--------------- -------------- -------------
NET LOSS ($15,731) ($16,575) ($17,689)
=============== ============== =============
</TABLE>
SEE ACCOMPANYING NOTES.
4 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
CONDENSED CONSOLIDATED BALANCE SHEET
FOR THE MONTH ENDED SEPTEMBER 30, 1997
DEBTOR NAME: MOBILEMEDIA CORPORATION ET AL.
CASE NUMBER: 97-174 (PJW)
- -------------------------------------------------------------------------------
See balance sheet attached.
Page 5 of 18
<PAGE>
HEADNOTES:
THESE FINANCIAL STATEMENTS HAVE NOT BEEN PREPARED IN ACCORDANCE WITH GAAP
BECAUSE STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO.121, "ACCOUNTING
FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS, TO BE
DISPOSED OF" ("SFAS 121") HAS NOT BEEN APPLIED. UPON THE APPLICATION OF
SFAS 121, THE COMPANY EXPECTS TO BE REQUIRED TO WRITE DOWN THE CARRYING
VALUE OF ITS LONG-LIVED ASSETS TO THEIR FAIR VALUE. THE COMPANY BELIEVES
THE AMOUNT OF THE WRITE-DOWN WILL BE MATERIAL; HOWEVER, IT IS NOT
POSSIBLE AT THIS TIME TO DETERMINE SUCH AMOUNT. THERE MAY ALSO BE
ADJUSTMENTS TO CERTAIN OTHER ACCOUNTS AS A RESULT OF THE DEBTORS' FILING
FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ON JANUARY 30,
1997.
<TABLE>
<CAPTION>
MOBILEMEDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 1997, AUGUST 31, 1997 AND JULY 31, 1997
(UNAUDITED)
(IN THOUSANDS)
SEPTEMBER AUGUST JULY
1997 1997 1997
--------------- --------------- ------------
ASSETS:
CURRENT ASSETS:
<S> <S> <C> <C>
Cash $5,388 $4,157 $3,468
Accounts Receivable, Net 61,001 61,161 60,063
Inventory 4,143 4,658 5,395
Prepaid Expenses 1,150 1,217 1,279
Other Current Assets 2,748 2,778 2,798
--------------- --------------- ------------
TOTAL CURRENT ASSETS 74,431 73,971 73,004
NONCURRENT ASSETS:
Property and Equipment, Net 279,280 286,188 293,194
Deferred Financing Fees, Net 24,600 25,154 25,708
Investment In Net Assets Of Equity Affiliate 1,911 1,949 2,024
Intangible Assets, Net 1,035,335 1,045,337 1,054,546
Other Assets 750 792 876
--------------- --------------- ------------
TOTAL NONCURRENT ASSETS 1,341,876 1,359,420 1,376,348
TOTAL ASSETS $1,416,307 $1,433,390 $1,449,352
------------ =============== =============== ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
LIABILITIES NOT SUBJECT TO COMPROMISE:
DIP Credit Facility $17,000 $17,000 $15,000
Accrued Reorganization Costs 4,702 5,382 5,511
Accrued Wages, Benefits and Payroll Taxes 13,755 12,319 11,713
Accounts Payable - Post Petition 4,155 5,433 3,939
Accrued Interest (Chase & DIP Facilities ) 4,396 4,595 4,621
Accrued Expenses and Other Current Liabilities 41,633 43,425 46,495
Advance Billings and Customer Deposits 35,803 36,210 37,785
--------------- --------------- ------------
TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 121,444 124,364 125,063
LIABILITIES SUBJECT TO COMPROMISE:
Accrued Wages, Benefits and Payroll Taxes 3,093 3,093 3,093
Chase Credit Facility 649,000 649,000 649,000
Notes Payable - 10 1/2% 174,125 174,125 174,125
Notes Payable - 9 3/8% 250,000 250,000 250,000
Notes Payable - Yampol 986 986 986
Notes Payable - Dial Page 12 1/4% 1,570 1,570 1,570
Accrued Interest On Notes Payable 20,735 20,751 20,761
Accounts Payable- Pre Petition 17,333 17,181 15,820
Accrued Expenses and Other Current
Liabilities - Pre Petition 14,400 12,929 12,926
Other Liabilities 4,934 4,973 5,013
--------------- --------------- ------------
TOTAL LIABILITIES SUBJECT TO COMPROMISE 1,136,176 1,134,608 1,133,295
DEFERRED TAX LIABILITY 72,097 72,097 72,097
----------------------
STOCKHOLDERS' EQUITY
Class A Common Stock 39 39 39
Class B Common Stock 2 2 2
Additional Paid-In Capital 671,459 671,459 671,459
Accumulated Deficit - Pre Petition (437,127) (437,127) (437,127)
Accumulated Deficit - Post Petition (141,661) (125,929) (109,354)
--------------- --------------- ------------
TOTAL STOCKHOLDERS' EQUITY 92,713 108,445 125,020
Less:
Treasury Stock (6,123) (6,123) (6,123)
--------------- --------------- ------------
TOTAL STOCKHOLDERS' EQUITY 86,590 102,322 118,897
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,416,307 $1,433,390 $1,449,352
------------------------------------------ =============== =============== ============
</TABLE>
SEE ACCOMPANYING NOTES
6 of 18
<PAGE>
FOOTNOTES TO THE FINANCIAL STATEMENTS:
1. These financial statements have not been prepared in accordance with
GAAP because Statement of Financial Accounting Standards No. 121,
"Accounting for the Impairment of Long-lived Assets and for Long-lived
Assets, to be Disposed Of" ("SFAS 121") has not been applied. Upon the
application of SFAS 121, the Company expects to be required to write down
the carrying value of its long-lived assets to their fair value. The
Company believes the amount of the write-down will be material; however, it
is not possible at this time to determine such amount. There may also be
adjustments to certain other accounts as a result of the Debtors' filing
for protection under Chapter 11 of the US Bankruptcy Code on January 30,
1997.
In March 1995, the Financial Accounting Standards Board issued SFAS 121,
which is effective for financial statements for fiscal years beginning
after December 15, 1995. Under certain circumstances, SFAS 121 requires
companies to write down the carrying value of long-lived assets recorded in
the financial statements to the fair value of such assets. A significant
amount of the assets of the Company, which were acquired as a result of the
acquisitions of businesses, including the Dial Page and MobileComm
acquisitions, were recorded in accordance with principles of purchase
accounting at acquisition prices and constitute long-lived assets. The
Company has determined, and its independent auditors have concurred, that
SFAS 121 is applicable to the Company, and therefore the Company expects to
be required to write down the carrying value of its long-lived assets to
their fair value. The Company believes the amount of the write down will be
material: however, it is not possible at this time to determine such
amount. Since the Company cannot comply with SFAS 121 at this time, it is
unable to issue audited financial statements in compliance with generally
accepted accounting principles. Consequently, the Company will not file its
Report on Form 10-K or its other periodic reports under the Securities
Exchange Act of 1934, as amended.
Page 7 of 18
<PAGE>
FOOTNOTES TO THE FINANCIAL STATEMENTS (CONTINUED):
2. On January 30, 1997 (the "Filing Date"), MobileMedia Corporation (the
"Company"), MobileMedia Communications, Inc. ("MobileMedia Communications")
and all seventeen of MobileMedia Communications' subsidiaries filed for
protection under Chapter 11 of title 11 of the United States Code (the
"Bankruptcy Code"). The Debtors are operating as debtors-in-possession and
are subject to the jurisdiction of the United States Bankruptcy Court for
the District of Delaware (the "Bankruptcy Court").
The Court has authorized the debtors to pay certain pre-petition creditors.
These permitted pre-petition payments include: (i) employee salary and
wages; (ii) certain employee benefits and travel expenses; (iii) certain
amounts owing to essential vendors; (iv) trust fund type sales and use
taxes; (v) trust fund payroll taxes; (vi) customer refunds; and (vii)
customer rewards.
3. Since the Filing Date, the Debtors have continued to manage their business
as debtors-in-possession under sections 1107 and 1108 of the Bankruptcy
Code. During the pendency of the Chapter 11 cases, the Bankruptcy Court has
jurisdiction over the assets and affairs of the Debtors, and their
continued operations are subject to the Bankruptcy Court's protection and
supervision. The Debtors have sought, obtained, and are in the process of
applying for, various orders from the Bankruptcy Court intended to
stabilize and reorganize their business and minimize any disruption caused
by the Chapter 11 cases.
4. Operating expense and EBITDA for September 1997 includes the favorable
impact of a $2.1 million reversal of previously recorded 1997 telephone
expense accruals.
5. During the month of February 1997, the Debtors drew down $45 million of
borrowings under the debtor-in-possession financing facility (the "DIP
facility") with The Chase Manhattan Bank, as agent for the lenders
thereunder (the "DIP Lenders"). During the months of March and April 1997,
the Debtors repaid $25 million and $5 million, respectively, of borrowings
under the DIP facility. During the month of August, the Debtors drew down
an additional $2 million under the DIP facility.
6. The Company is one of the largest paging companies in the U.S., with
approximately 3.7 million system reported units in service at September 30,
1997, and offers local, regional and national paging services to its
subscribers. The Company estimates it will remove approximately 0.1 million
units included above, for which payment is delinquent or are non-revenue
generating. The consolidated financial statements include the accounts of
the Company and its wholly-owned subsidiaries. The Company's business is
conducted primarily through the Company's principal operating subsidiary,
MobileMedia Communications, and its subsidiaries. The Company markets its
services primarily under the "MobileComm" brand name. All significant
intercompany accounts and transactions have been eliminated.
Page 8 of 18
<PAGE>
FOOTNOTES TO THE FINANCIAL STATEMENTS (CONTINUED):
7. As previously announced in its September 27, 1996 and October 21, 1996
releases, the Company discovered misrepresentations and other violations
which occurred during the licensing process for as many as 400 to 500, or
approximately 6% to 7%, of its approximately 8,000 local transmission
one-way paging stations. The Company caused an investigation to be
conducted by its outside counsel, and a comprehensive report regarding
these matters was provided to the Federal Communications Commission (the
"FCC") in the fall of 1996. In cooperation with the FCC, outside counsel's
investigation was expanded to examine all of the Company's paging licenses,
and the results of that investigation were submitted to the FCC on November
8, 1996. As part of the cooperative process, the Company also proposed to
the FCC that a Consent Order be entered which would result, among other
things, in the return of certain local paging authorizations then held by
the Company, the dismissal of certain pending applications for paging
authorizations, and the voluntary acceptance of a substantial monetary
forfeiture.
On January 13, 1997, the FCC issued a Public Notice relating to the status
of certain FCC authorizations held by the Company. Pursuant to the Public
Notice, the FCC announced that it had (i) automatically terminated
approximately 185 authorizations for paging facilities that were not
constructed by the expiration date of their construction permits and
remained unconstructed, (ii) dismissed approximately 94 applications for
fill-in sites around existing paging stations (which had been filed under
the so-called "40-mile rule") as defective because they were predicated
upon unconstructed facilities and (iii) automatically terminated
approximately 99 other authorizations for paging facilities that were
constructed after the expiration date of their construction permits. With
respect to the approximately 99 authorizations where the underlying station
was untimely constructed, the FCC granted the Company interim operating
authority subject to further action by the FCC.
On April 8, 1997, the FCC adopted an order commencing an administrative
hearing into the qualification of the Company to remain a licensee. The
order directed an Administrative Law Judge to take evidence and develop a
full factual record on directed issues concerning the Company's filing of
false forms and applications. The Company was permitted to operate its
licensed facilities and provide service to the public during the pendency
of the hearing.
Page 9 of 18
<PAGE>
FOOTNOTES TO THE FINANCIAL STATEMENTS (CONTINUED):
On June 6, 1997, the FCC issued an order staying the hearing proceeding for
ten months in order to allow the Company to develop and consummate a plan
of reorganization that provides for a change of control of the Company and
a permissible transfer of the Company's FCC licenses. The order, which is
based on an FCC doctrine known as SECOND THURSDAY, provides that if there
is a change of control that meets the conditions of SECOND THURSDAY, the
Company's FCC issues will be resolved by the transfer of the Company's FCC
licenses to the new owners of the Company and the hearing will not proceed.
The Company believes that a reorganization plan that provides for either a
conversion of certain existing debt to equity, in which case existing
MobileMedia shares will be substantially diluted or eliminated, or a sale
of the Company will result in a change of control. There can be no
assurance that the Company will be successful in consummating a plan of
reorganization meeting the requirements of the order. In the event that the
Company were unable to do so, the Company would be required to proceed with
the hearing, which, if adversely determined, could result in the loss of
the Company's licenses or substantial monetary fines, or both. Such an
outcome would have a material adverse effect on the Company's financial
condition and results of operations.
Page 10 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
CONSOLIDATED STATEMENT OF CASH
RECEIPTS AND DISBURSEMENTS
FOR THE MONTH ENDED SEPTEMBER 30, 1997
DEBTOR NAME: MOBILEMEDIA CORPORATION ET AL.
CASE NUMBER: 97-174 (PJW)
- -------------------------------------------------------------------------------
The Debtors have 63 bank accounts. In order to minimize costs to the estate, the
Debtors have included a GAAP basis Statement of Cash Flows for the reporting
period which is attached. The Statement of Cash Flows replaces the listing of
cash receipts and disbursements, copies of the bank statements, and bank account
reconciliations.
Page 11 of 18
<PAGE>
HEADNOTES:
THESE FINANCIAL STATEMENTS HAVE NOT BEEN PREPARED IN ACCORDANCE WITH GAAP
BECAUSE STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 121, "ACCOUNTING FOR THE
IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS, TO BE DISPOSED OF"
("SFAS 121") HAS NOT BEEN APPLIED. UPON THE APPLICATION OF SFAS 121, THE COMPANY
EXPECTS TO BE REQUIRED TO WRITE DOWN THE CARRYING VALUE OF ITS LONG-LIVED ASSETS
TO THEIR FAIR VALUE. THE COMPANY BELIEVES THE AMOUNT OF THE WRITE-DOWN WILL BE
MATERIAL; HOWEVER, IT IS NOT POSSIBLE AT THIS TIME TO DETERMINE SUCH AMOUNT.
THERE MAY ALSO BE ADJUSTMENTS TO CERTAIN OTHER ACCOUNTS AS A RESULT OF THE
DEBTORS' FILING FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ON
JANUARY 30, 1997.
<TABLE>
<CAPTION>
MOBILEMEDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE MONTHS ENDED SEPTEMBER 30, 1997, AUGUST 31, 1997 AND JULY 31, 1997
(UNAUDITED)
(IN THOUSANDS)
SEPTEMBER AUGUST JULY
1997 1997 1997
--------------------------------------------
OPERATING ACTIVITIES
<S> <C> <C> <C>
NET LOSS ($15,731) ($16,575) ($17,689)
ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Depreciation And Amortization 17,862 18,007 17,580
Provision For Uncollectible Accounts And Returns 6,373 5,508 5,468
Undistributed Earnings Of Affiliate 38 75 (23)
Deferred Financings Fees, Net 554 554 554
Change In Operating Assets and Liabilities:
Accounts Receivable (6,213) (6,606) (4,698)
Inventory 515 737 1,180
Prepaid Expenses And Other Assets 139 131 22
Accounts Payable, Accrued Expenses and Other (595) (1,386) 2,114
----------- ----------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,941 445 4,508
INVESTING ACTIVITIES
Construction And Capital Expenditures,
Including Net Change In Pager Assets (1,709) (1,756) (5,100)
----------- ----------- -----------
NET CASH USED IN INVESTING ACTIVITIES (1,709) (1,756) (5,100)
FINANCING ACTIVITIES
Borrowings (Repayments) of DIP Credit Facility 0 2,000 0
----------- ----------- -----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 0 2,000 0
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,231 689 (591)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,157 3,468 4,059
----------- ----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $5,388 $4,157 $3,468
=========== =========== ===========
</TABLE>
SEE ACCOMPANYING NOTES
12 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
STATEMENT OF ACCOUNTS RECEIVABLE AGING AND
AGING OF POSTPETITION ACCOUNTS PAYABLE
FOR THE MONTH ENDED SEPTEMBER 30, 1997
DEBTOR NAME: MOBILEMEDIA CORPORATION ET AL.
CASE NUMBER: 97-174 (PJW)
- --------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE AGING
- --------------------------------------------------------------------------------
- -------------- --------------------- -------------------------------------------
$ 30,627,535 0 - 30 days old
--------------------- -------------------------------------------
--------------------- -------------------------------------------
20,771,833 31 - 60 days old
--------------------- -------------------------------------------
--------------------- -------------------------------------------
12,825,999 61 - 90 days old
--------------------- -------------------------------------------
--------------------- -------------------------------------------
65,542,132 91+ days old
--------------------- -------------------------------------------
--------------------- -------------------------------------------
126,767,499 TOTAL TRADE ACCOUNTS RECEIVABLE
--------------------- -------------------------------------------
--------------------- -------------------------------------------
( 67,447,952) ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS
--------------------- -------------------------------------------
--------------------- -------------------------------------------
59,319,547 TRADE ACCOUNTS RECEIVABLE (NET)
--------------------- -------------------------------------------
--------------------- -------------------------------------------
1,681,927 OTHER NON-TRADE RECEIVABLES
--------------------- -------------------------------------------
--------------------- -------------------------------------------
$ 61,001,474 ACCOUNTS RECEIVABLE, NET
- -------------- --------------------- -------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
AGING OF POSTPETITION ACCOUNTS PAYABLE
- ------------------------------------------------------------------------- ------------ ------------- ----------------
<S> <C> <C> <C> <C> <C>
0-30 31-60 61-90 91+
Days Days Days Days Total
- ---------------------------------------- ---------------- --------------- ------------ ------------- ----------------
ACCOUNTS PAYABLE $ 2,253,291 539,163 926,558 436,438 $ 4,155,448
- ---------------------------------------- ---------------- --------------- ------------ ------------- ----------------
</TABLE>
Page 13 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
STATEMENT OF OPERATIONS, TAXES,
INSURANCE AND PERSONNEL
FOR THE MONTH ENDED SEPTEMBER 30, 1997
DEBTOR NAME: MOBILEMEDIA CORPORATION ET AL.
CASE NUMBER: 97-174 (PJW)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
STATUS OF POSTPETITION TAXES
- ---------------------------------------------------------------------------------------------------------------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
BEGINNING AMOUNT ENDING
TAX WITHHELD AMOUNT TAX DELINQUENT
LIABILITY OR ACCRUED PAID LIABILITY TAXES
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
FEDERAL
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
WITHHOLDING $ 0 $ 1,606,233 $ 1,606,233 $ 0 $ 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
FICA-EMPLOYEE 0 644,249 644,249 0 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
FICA-EMPLOYER 157,816 1,618,414 1,562,594 213,636 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
UNEMPLOYMENT 2,314 20,559 19,926 2,947 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
INCOME 0 0 0 0 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
TOTAL FEDERAL TAXES 160,130 3,889,455 3,833,002 216,583 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
STATE AND LOCAL
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
WITHHOLDING 0 219,386 219,386 0 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
SALES 903,480 1,595,801 1,382,860 1,116,421 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
UNEMPLOYMENT 12,112 87,997 86,673 13,436 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
REAL PROPERTY 2,039,348 392,057 - 2,431,405 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
OTHER 592,625 30,692 83,863 539,454 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
TOTAL STATE AND LOCAL 3,547,565 2,325,933 1,772,782 4,100,716 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
TOTAL TAXES $ 3,707,695 $ 6,215,388 $ 5,605,784 $ 4,317,299 $ 0
- -------------------------------------- --------------- -------------- --------------- --------------- ---------------
</TABLE>
Page 14 of 18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS
FOR THE MONTH ENDED SEPTEMBER 30, 1997
- ---------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
INSIDERS
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Payee Name Position Salary/Bonus/ Reimbursable
Auto Allowance Expenses Total
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
<S> <C> <C> <C> <C>
Alvarez & Marsal Inc. - Chairman - Restructuring $ 54,167 $ 0 $ 54,167
Joseph A. Bondi
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Boykin, Roberta Assistant Corporate Counsel 8,462 1,503 9,964
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Burdette, H. Stephen Senior VP Corporate 15,530 3,980 19,510
Development and Senior VP
Operations
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Cross, Andrew Executive VP Sales and 17,000 4,025 21,025
Marketing
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Grawert, Ron Chief Executive Officer 30,769 2,051 32,820
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Gray, Patricia Secretary/Acting General 13,085 0 13,085
Counsel
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Gross, Steven Senior VP Strategic Planning 13,923 2,728 16,651
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Hilson, Debra Assistant Secretary 4,615 3,577 8,192
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Hughes, Curtis Assistant VP Mgmt. 9,615 3,480 13,096
Information Systems
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Pascucci, James Assistant Treasurer 7,315 0 7,315
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Pittsman, Santo Senior VP of Administration 15,846 1,881 17,727
and Business Planning
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Shea, Kevin Treasurer 10,778 0 10,778
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
Witsaman, Mark Senior VP and Chief 15,269 4,508 19,777
Technology Officer
- ----------------------------- ----------------------------- ---------------------- ------------------ ----------------
- ----------------------------------------------------------------------------------------------------- ----------------
TOTAL PAYMENTS TO INSIDERS $ 244,107
- ----------------------------------------------------------------------------------------------------- ----------------
</TABLE>
Page 15 of 18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
PAYMENTS TO INSIDERS AND PROFESSIONALS (CONTINUED)
FOR THE MONTH ENDED SEPTEMBER 30, 1997
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
PROFESSIONALS
- ---------------------------------------------------------------------------------------------------------------------
Holdback
Date of and
Name and Relationship Court Invoices Invoices Invoice
Approval Received (1) Paid Balances
Due
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
1. Ernst & Young - Auditor, Tax and Financial 1/30/97 $211,563 $ 289,406 $ 131,288
Consultants to Debtor
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
2. Latham & Watkins - Counsel to Debtor 1/30/97 39,797 54,416 71,594
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
3. Alvarez & Marsal Inc.- Restructuring 1/30/97 268,268 261,698 361,299
Consultant to Debtor (2)
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
4. Sidley & Austin - Bankruptcy Counsel to 1/30/97 119,025 123,714 182,136
Debtor
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
5. Young, Conway, Stargate & Taylor - Delaware 1/30/97 32,125 19,510 12,615
Counsel to Debtor
-------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
6. Wiley, Rein & Fielding - FCC Counsel to 1/30/97 73,145 87,398 128,522
Debtor
-------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
7. Koteen & Naftalin - FCC Counsel to Debtor 6/11/97 698 3,197 4,472
-------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
8. Houlihan, Lokey, Howard & Zukin - Advisors 6/04/97 79,577 - 287,134
to the Creditors' Committee
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
9. Jones, Day, Reavis & Pogue - Counsel to the 4/03/97 - 28,711 4,406
Creditors' Committee
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
10. Morris, Nichols, Arsht & Tunnell - Delaware 4/03/97 5,874 3,935 1,939
Counsel to the Creditors' Committee
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
11. Paul, Weiss, Rifkind, Wharton & Garrison - 4/25/97 1,754 5,532 5,542
FCC Counsel to the Creditors' Committee
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
12. The Blackstone Group LP - Financial 7/10/97 125,000 609,462 175,000
Advisors to Debtor
- ------------------------------------------------- -------------- ----------------- ---------------- -----------------
TOTAL PAYMENTS TO PROFESSIONALS $956,825 $1,486,710 $1,365,936
- ---------------------------------------------------------------- ----------------- ---------------- -----------------
</TABLE>
(1) Excludes invoices for fees and expenses through September 30, 1997 that were
received by the Debtors subsequent to September 30, 1997.
(2) Includes fees and expenses for David R. Gibson, Senior Vice President and
Chief Financial Officer (effective June 24, 1997).
Page 16 of 18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
ADEQUATE PROTECTION PAYMENTS
FOR THE MONTH ENDED SEPTEMBER 30, 1997
- ---------------------------------------------------------------------------------------------------------------------
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
- ------------------------------------------------------- -------------------- ------------------ ---------------------
<S> <C> <C> <C>
The Chase Manhattan Bank - (Interest) $ 4,504,530 $ 4,504,530* $ 0
- ------------------------------------------------------- -------------------- ------------------ ---------------------
</TABLE>
* Payment made on 10/1/97.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------- ---------- ----------
QUESTIONNAIRE
FOR THE MONTH ENDED SEPTEMBER 30, 1997 YES NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
1. Have any assets been sold or transferred outside the normal course of business this NO
reporting period?
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
2. Have any funds been disbursed from any account other than a debtor in possession account? NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
3. Are any postpetition receivables (accounts, notes, or loans) due from related parties? NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
4. Have any payments been made of prepetition liabilities this reporting period? YES
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
5. Have any postpetition loans been received by the debtor from any party? YES
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
6. Are any postpetition payroll taxes past due? NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
7. Are any postpetition state or federal income taxes past due? NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
8. Are any postpetition real estate taxes past due? NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
9. Are any postpetition taxes past due? NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
10. Are any amounts owed to postpetition creditors past due? NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
11. Have any prepetition taxes been paid during the reporting period? YES
- ----------------------------------------------------------------------------------------------- ---------- ----------
- ----------------------------------------------------------------------------------------------- ---------- ----------
12. Are any wage payments past due? NO
- ----------------------------------------------------------------------------------------------- ---------- ----------
</TABLE>
If the answer to any of the above questions is "YES", provide a detailed
explanation of each item.
Item 4 & 11. The Court has authorized the Debtors to pay certain
pre-petition creditors. These permitted pre-petition payments
include (i) employee salary and wages; (ii) certain employee
benefits and travel expenses; (iii) certain amounts owing to
essential vendors; (iv) trust fund type sales and use taxes;
(v) trust fund payroll taxes; (vi) customer refunds; and (vii)
customer rewards.
Item 5. During the month of February 1997, the Debtors drew down
$45 million of borrowings under the DIP facility with The
Chase Manhattan Bank, as agent for the lenders thereunder.
During the months of March and April 1997, the Debtors repaid
$25 million and $5 million, respectively, of borrowings under
the DIP facility. The Debtors drew down an additional $2
million under the DIP facility during the month of August.
Page 17 of 18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
INSURANCE
FOR THE MONTH ENDED SEPTEMBER 30, 1997
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
THERE WERE NO CHANGES IN INSURANCE COVERAGE FOR THE PERIOD.
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
PERSONNEL
FOR THE MONTH ENDED SEPTEMBER 30, 1997
- ---------------------------------------------------------------------------------------------------------------------
Full Time Part Time
- -------------------------------------------------------------------------------------- -------------- ---------------
<S> <C> <C>
1. Total number of employees at beginning of period 3,470 52
- -------------------------------------------------------------------------------------- -------------- ---------------
- -------------------------------------------------------------------------------------- -------------- ---------------
2. Number of employees hired during the period 61 9
- -------------------------------------------------------------------------------------- -------------- ---------------
- -------------------------------------------------------------------------------------- -------------- ---------------
3. Number of employees terminated or resigned during the period 125 4
- -------------------------------------------------------------------------------------- -------------- ---------------
- -------------------------------------------------------------------------------------- -------------- ---------------
4. Total number of employees on payroll at end of period 3,406 57
- -------------------------------------------------------------------------------------- -------------- ---------------
</TABLE>
Page 18 of 18
