================================================================================
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): November 3, 1998
MOBILEMEDIA COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
Delaware 33-68840 22-3379712
(State or other (Commission File No.) (IRS Employer
jurisdication Identification No.)
of incorporation)
Fort Lee Executive Park, One Executive Drive, Suite 500,
Fort Lee, New Jersey 07024
(Address of principal executive offices)
(Zip Code)
(201) 224-9200
(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, 1998, MobileMedia Corporation (the "Company"),
MobileMedia Communications, Inc. ("MobileMedia Communications") and all of the
subsidiaries of MobileMedia Communications (collectively, the "Companies") 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, 1998 which is attached hereto as Exhibit 99.1.
Item 6. Resignations of Registrant's Directors.
Not Applicable.
Item 7. Financial Statements and Exhibits.
Not Applicable.
Item 8. Change in Fiscal Year.
Not Applicable.
2
<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.
Date: November 3, 1998 MOBILEMEDIA COMMUNICATIONS, INC.
By: /s/ David R. Gibson
----------------------------
David R. Gibson
Senior Vice President and
Chief Financial Officer
3
<PAGE>
EXHIBIT INDEX
Exhibit Page
- ------- ----
Exhibit 99.1--Monthly Operating Report
4
OFFICE OF THE U.S. TRUSTEE - REGION 3
MONTHLY OPERATING REPORT
For the month ended September 30, 1998
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:
<TABLE>
<S> <C>
Senior Vice President/Chief Financial Officer
- -------------------------------- ---------------------------------------------
SIGNATURE OF RESPONSIBLE PARTY TITLE
David R. Gibson October 30, 1998
- -------------------------------- ---------------------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
</TABLE>
Page 1 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
ATTACHMENT
For the month ended September 30, 1998
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 37 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, 1998
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 are unaudited and accordingly, there could be year
end audit adjustments as well as other adjustments related to the Debtors'
filing for protection under Chapter 11 of the US Bankruptcy Code on January 30,
1997.
(1) On September 3, 1998, the Company completed the sale of 166 transmission
towers to Pinnacle Towers, Inc. ("Pinnacle") for $170 million in cash. Under the
terms of a lease with Pinnacle, the Company will lease antenna sites located at
these towers for an initial period of 15 years at an aggregate annual rental of
$10.7 million. The sale was accounted for in accordance with Statement of
Financial Accounting Standards No. 28, Accounting for Sales with Leasebacks, and
resulted in a recognized gain of $94.2 million and a deferred gain of $70.0
million. The deferred gain will be amortized on a straight-line basis over the
initial lease period of 15 years. Subsequent to the sale, the Company
distributed the $170 million in proceeds to its secured creditors, who had a
lien on such assets. As a result of the sale transaction, the Company no longer
receives approximately $0.2 million of monthly rental revenue included in
Service, Rents & Maintenance revenue and the Company will incur an additional
$0.8 million of monthly rent expense included in Service, Rents & Maintenance
expense. The estimated income tax expense of the sale transaction is
approximately $0.7 million.
(2) General & Administrative expense in August 1998 includes the reversal of a
$0.5 million accrual of telephone expenses recorded in prior months.
MobileMedia Corporation and Subsidiaries
Consolidated Statements of Operations
For the Months Ended September 30, 1998, August 31, 1998 and July 31, 1998
( Unaudited )
( in thousands )
September August July
1998 1998 1998
-------- -------- --------
Paging Revenues
Service, Rents & Maintenance $ 34,682 (1) $ 35,008 $ 35,204
Equipment Sales
Product Sales 1,961 2,020 2,592
Cost of Products Sold 1,868 1,813 2,076
-------- -------- --------
Equipment Margin 93 207 516
Net Revenue 34,776 35,215 35,719
Operating Expense
Service, Rents & Maintenance 9,505 (1) 9,048 8,926
Selling 4,920 4,428 5,040
General & Administrative 11,077 10,326(2) 11,233
-------- -------- --------
Operating Expense Before Depr. & Amort 25,501 23,802 25,199
EBITDA Before Reorganization Costs 9,274 11,413 10,520
Reorganization Costs 1,514 1,553 1,514
-------- -------- --------
EBITDA after Reorganization Costs 7,760 9,860 9,006
Depreciation 6,680 6,709 6,724
Amortization 2,484 2,484 2,484
Amortization of Deferred Gain (389)(1) 0 0
-------- -------- --------
Total Depreciation and Amortization 8,775 9,193 9,208
Operating Income(Loss) (1,015) 667 (201)
Interest Expense 3,676 4,868 4,793
Gain on Sale of Tower Assets 94,165 (1) 0 0
Other Income(Expense) 2 (25) (9)
Income Taxes 678 (1) 0 0
-------- -------- --------
Net Income(Loss) $ 88,796 ($ 4,225) ($ 5,004)
======== ======== ========
Page 4 of 18
<PAGE>
OFFICE OF THE U.S. TRUSTEE - REGION 3
CONDENSED CONSOLIDATED BALANCE SHEET
For the month ended September 30, 1998
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- --------------------------------------------------------------------------------
See balance sheet attached.
Page 5 of 18
<PAGE>
HEADNOTES:
These financial statements are unaudited and accordingly, there could be year
end audit adjustments as well as other adjustments related to the Debtors'
filing for protection under Chapter 11 of the US Bankruptcy Code on January 30,
1997.
(1) On September 3, 1998, the Company completed the sale of 166 transmission
towers to Pinnacle Towers, Inc. ("Pinnacle") for $170 million in cash. Under the
terms of a lease with Pinnacle, the Company will lease antenna sites located at
these towers for an initial period of 15 years at an aggregate annual rental of
$10.7 million. The sale was accounted for in accordance with Statement of
Financial Accounting Standards No. 28, Accounting for Sales with Leasebacks, and
resulted in a recognized gain of $94.2 million and a deferred gain of $70.0
million. The deferred gain will be amortized on a straight-line basis over the
initial lease period of 15 years. Subsequent to the sale, the Company
distributed the $170 million in proceeds to its secured creditors, who had a
lien on such assets.
MobileMedia Corporation and Subsidiaries
Consolidated Balance Sheets
As of September 30, 1998, August 31, 1998 and July 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
September August July
1998 1998 1998
---------- ---------- ----------
<S> <C> <C> <C>
Assets:
- -------
Current Assets:
---------------
Cash $ 9,814 $ 13,165 $ 10,811
Accounts Receivable, Net 38,127 37,472 37,580
Inventory 1,167 1,240 736
Prepaid Expenses 6,391 5,489 5,742
Other Current Assets 5,399 5,145 5,113
---------- ---------- ----------
Total Current Assets 60,898 62,511 59,983
Noncurrent Assets:
------------------
Property and Equipment, Net 218,873(1) 225,707 228,207
Deferred Financing Fees, Net 20,206 20,510 20,813
Investment In Net Assets Of Equity Affiliate 1,691 1,734 1,734
Intangible Assets, Net 273,287 275,747 278,206
Other Assets 901 329 353
---------- ---------- ----------
Total Noncurrent Assets 514,959 524,026 529,314
Total Assets $ 575,857 $ 586,538 $ 589,297
------------ ========== ========== ==========
Liabilities and Stockholders' Equity:
- -------------------------------------
Liabilities Not Subject to Compromise:
--------------------------------------
DIP Credit Facility $ 0 $ 0 $ 0
Accrued Reorganization Costs 7,001 6,131 5,275
Accrued Wages, Benefits and Payroll Taxes 12,398 10,907 9,049
Accounts Payable - Post Petition 2,106 4,981 3,966
Accrued Interest 4,145 5,443 5,455
Accrued Expenses and Other Current Liabilities 36,074 32,668 33,469
Advance Billings and Customer Deposits 31,340 31,567 32,659
Deferred Gain on Tower Sale 69,611(1) 0 0
---------- ---------- ----------
Total Liabilities Not Subject To Compromise 162,675 91,696 89,873
Liabilities Subject to Compromise:
----------------------------------
Accrued Wages, Benefits and Payroll Taxes 3,086 3,093 3,093
Chase Credit Facility 479,000(1) 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 20,423 20,423 20,423
Accounts Payable - Pre Petition 12,473 12,833 12,731
Accrued Expenses and Other Current Liabilities - Pre Petition 20,981 21,062 21,515
Other Liabilities 4,724 4,730 4,737
---------- ---------- ----------
Total Liabilities Subject To Compromise 967,368 1,137,823 1,138,180
Deferred Tax Liability 2,655 2,655 2,655
---------------------- ---------- ---------- ----------
Stockholders' Equity
--------------------
Class A Common Stock 50 50 50
Class B Common Stock 2 2 2
Additional Paid-In Capital 689,148 689,148 689,148
Accumulated Deficit - Pre Petition (1,171,108) (1,171,108) 1,171,108)
Accumulated Deficit - Post Petition (68,811) (157,607) (153,382)
---------- ---------- ----------
Total Stockholders' Equity (550,718) (639,514) (635,289)
Less:
Treasury Stock (6,123) (6,123) (6,123)
---------- ---------- ----------
Total Stockholders' Equity (556,841) (645,637) (641,412)
Total Liabilities and Stockholders' Equity $ 575,857 $ 586,538 $ 589,297
------------------------------------------ ========== ========== ==========
</TABLE>
See Accompanying Notes
Page 6 of 18
<PAGE>
Footnotes to the Financial Statements:
1. These financial statements are unaudited and accordingly, there could be
year end audit adjustments as well as other adjustments related to the
Debtors' filing for protection under Chapter 11 of the US Bankruptcy Code
on January 30, 1997.
2. On January 30, 1997 (the "Filing Date"), MobileMedia Corporation (the
"Company"), MobileMedia Communications, Inc. ("MobileMedia Communications")
and all seventeen of MobileMedia Communications' subsidiaries (collectively
with the Company and MobileMedia Communications, the "Debtors"), 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 Bankruptcy 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) property taxes; (vii)
customer refunds; and (viii) customer rewards.
On August 20, 1998, Arch Communications Group, Inc. ("Arch") and the
Debtors announced a definitive merger agreement for Arch to acquire the
Debtors. This merger agreement was amended as of September 3, 1998. Under
the terms of the agreement, Arch will acquire the Debtors for a combination
of cash, the assumption of certain liabilities, and the issuance of Arch
common stock and warrants to acquire Arch common stock. The transaction
will be implemented through a plan of reorganization that the Debtors filed
with the Bankruptcy Court on August 20, 1998 ("the Amended Plan"). A
Disclosure Statement related to the Amended Plan was filed with the
Bankruptcy Court on August 25, 1998 and was amended as of September 18,
1998. A hearing concerning the adequacy of information contained in the
Disclosure Statement, scheduled for October 14, 1998, was adjourned to
December 10, 1998.
Page 7 of 18
<PAGE>
Footnotes to the Financial Statements (continued):
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. On September 3, 1998, the Company completed the sale of 166 transmission
towers to Pinnacle Towers, Inc. ("Pinnacle") for $170 million in cash.
Under the terms of a lease with Pinnacle, the Company will lease antenna
sites located at these towers for an initial period of 15 years at an
aggregate annual rental of $10.7 million. The sale was accounted for in
accordance with Statement of Financial Accounting Standard No. 28,
Accounting for Sales with Leasebacks, and resulted in a recognized gain of
$94.2 million and a deferred gain of $70.0 million. The deferred gain will
be amortized on a straight-line basis over the initial lease period of 15
years. Subsequent to the sale, the Company distributed the $170 million in
proceeds to its secured creditors, who had a lien on such assets. As a
result of the sale transaction, the Company on longer receives
approximately $0.2 million of monthly rental revenue included in Service,
Rents & Maintenance revenue and the Company will incur an additional $0.8
million of monthly rent included in Service, Rents & Maintenance expense.
The estimated income tax expense of the sale transaction is approximately
$0.7 million.
5. General & Administrative expense in August 1998 includes the reversal of a
$0.5 million accrual of telephone expenses recorded in prior months.
6. The Company is one of the largest paging companies in the U.S., with
approximately 3.2 million units in service at September 30, 1998, and
offers local, regional and national paging services to its subscribers. 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
that 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 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.
On June 6, 1997, the FCC issued an order staying the hearing proceeding 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 was
originally granted for ten months and was extended by the FCC through
October 6, 1998. 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,
Page 9 of 18
<PAGE>
Footnotes to the Financial Statements (continued):
or a sale of the Company, as reflected in the Amended Plan, will result in
a change of control.
On September 2, 1998, the Company and Arch filed a joint Second Thursday
application. The Company believes the plan of reorganization referenced in
the application satisfies the conditions of Second Thursday. On October 5,
1998, a supplement was filed to notify the FCC of certain modifications to
the proposed transaction. The application was accepted for filing by public
notice dated October 15, 1998. On October 16, 1998, the Company and Arch
filed a joint supplement of data requested by the staff of the Wireless
Telecommunications Bureau to assist in their evaluation of the application.
In the event that the Company were unable to consummate the Amended Plan or
any other plan of reorganization that satisfies the conditions of Second
Thursday, 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, 1998
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- --------------------------------------------------------------------------------
The Debtors have 37 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 are unaudited and accordingly, there could be year
end audit adjustments as well as other adjustments related to the Debtors'
filing for protection under Chapter 11 of the US Bankruptcy Code on January 30,
1997.
(1) On September 3, 1998, the Company completed the sale of 166 transmission
towers to Pinnacle Towers, Inc. ("Pinnacle") for $170 million in cash. Under the
terms of a lease with Pinnacle, the Company will lease antenna sites located at
these towers for an initial period of 15 years at an aggregate annual rental of
$10.7 million. The sale was accounted for in accordance with Statement pf
Financial Accounting Standards No. 28, Accounting for Sales with Leasebacks, and
resulted in a recognized gain of $94.2 million and a deferred gain of $70.0
million. The deferred gain will be amortized on a straight-line basis over the
initial lease period of 15 years. Subsequent to the sale, the Company
distributed the $170 million in proceeds to its secured creditors, who had a
lien on such assets.
MobileMedia Corporation and Subsidiaries
Consolidated Statements Of Cash Flows
For The Months Ended September 30, 1998, August 31, 1998 and July 31, 1998
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
September August July
1998 1998 1998
--------- -------- --------
<S> <C> <C> <C>
Operating Activities
Net Income(Loss) $ 88,796 ($ 4,225) ($ 5,003)
Adjustments To Reconcile Net Income(Loss) To Net Cash
Provided By (Used In) Operating Activities:
Depreciation And Amortization 9,164 9,193 9,208
Provision For Uncollectible Accounts And Returns 1,021 1,133 1,185
Amortization of Deferred Gain on Sale of Tower Assets (389)(1) 0 0
Income Taxes 678 (1)
Undistributed Earnings Of Affiliate 43 0 0
Recognized Gain On Sale Of Tower Assets (94,165)(1) 0 0
Deferred Financings Fees, Net 304 304 304
Change In Operating Assets and Liabilities:
Accounts Receivable (1,677) (1,025) 1,125
Inventory 73 (504) 179
Prepaid Expenses And Other Assets (1,156) 221 99
Accounts Payable, Accrued Expenses and Other (364) 1,466 (613)
--------- -------- --------
Net Cash Provided By (Used In) Operating Activities 2,330 6,563 6,484
Investing Activities
Construction And Capital Expenditures,
Including Net Change In Pager Assets (5,385) (4,209) (7,232)
Net Proceeds From the Sale of tower assets 169,703 (1) 0 0
--------- -------- --------
Net Cash Provided By (Used In) Investing Activities 164,318 (4,209) (7,232)
Financing Activities
Payment to Chase Credit Facility (170,000)(1) 0 0
Borrowings (Repayments) of DIP Credit Facility 0 0 0
--------- -------- --------
Net Cash Provided By (Used In) Financing Activities (170,000) 0 0
Net Increase (Decrease) In Cash And Cash Equivalents (3,352) 2,354 (748)
Cash And Cash Equivalents At Beginning Of Period 13,165 10,811 11,559
--------- -------- --------
Cash And Cash Equivalents At End Of Period $ 9,814 $ 13,165 $ 10,811
========= ======== ========
</TABLE>
See Accompanying Notes
Page 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, 1998
Debtor Name: MobileMedia Corporation et al.
Case Number: 97-174 (PJW)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
================================================================================
ACCOUNTS RECEIVABLE AGING
- --------------------------------------------------------------------------------
<S> <C>
$ 20,644,549 0 - 30 days old
---------------------------------------------------------------------------
14,402,405 31 - 60 days old
---------------------------------------------------------------------------
6,920,671 61 - 90 days old
---------------------------------------------------------------------------
13,003,973 91+ days old
---------------------------------------------------------------------------
54,971,598 TOTAL TRADE ACCOUNTS RECEIVABLE
---------------------------------------------------------------------------
(17,424,000) ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS
---------------------------------------------------------------------------
37,547,598 TRADE ACCOUNTS RECEIVABLE (NET)
---------------------------------------------------------------------------
579,849 OTHER NON-TRADE RECEIVABLES
---------------------------------------------------------------------------
$ 38,127,447 ACCOUNTS RECEIVABLE, NET
================================================================================
</TABLE>
<TABLE>
<CAPTION>
======================================
AGING OF POSTPETITION ACCOUNTS PAYABLE
================================================================================
0-30 31-60 61-90 91+
Days Days Days Days Total
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE $ 1,468,894 636,974 0 0 $2,105,868
================================================================================
</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, 1998
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
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
FEDERAL
=============================================================================================================================
WITHHOLDING $ 0 $ 1,058,739 $ 1,058,739 $ 0 $ 0
- -----------------------------------------------------------------------------------------------------------------------------
FICA-EMPLOYEE 0 612,099 612,099 0 0
- -----------------------------------------------------------------------------------------------------------------------------
FICA-EMPLOYER 179,954 1,176,073 1,130,009 226,018 0
- -----------------------------------------------------------------------------------------------------------------------------
UNEMPLOYMENT 1,155 4,934 5,009 1,080 0
- -----------------------------------------------------------------------------------------------------------------------------
INCOME 0 0 0 0 0
=============================================================================================================================
TOTAL FEDERAL TAXES 181,109 2,851,845 2,805,856 227,098 0
=============================================================================================================================
STATE AND LOCAL
=============================================================================================================================
WITHHOLDING 23,205 179,098 164,202 38,101 0
- -----------------------------------------------------------------------------------------------------------------------------
SALES 508,714 1,135,822 1,107,939 536,597 0
- -----------------------------------------------------------------------------------------------------------------------------
UNEMPLOYMENT 8,584 29,537 28,800 9,321 0
- -----------------------------------------------------------------------------------------------------------------------------
REAL PROPERTY 6,542,939 466,451 154,369 6,855,021 0
- -----------------------------------------------------------------------------------------------------------------------------
OTHER 2,578,414 1,764,621 564,364 3,778,671 0
=============================================================================================================================
TOTAL STATE AND LOCAL 9,661,856 3,575,529 2,019,674 11,217,711 0
=============================================================================================================================
TOTAL TAXES $ 9,842,965 $ 6,427,374 $ 4,825,530 $ 11,444,809 $ 0
=============================================================================================================================
</TABLE>
Page 14 of 18
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================
PAYMENTS TO INSIDERS AND PROFESSIONALS
For the month ended September 30, 1998
==========================================================================================
==========================================================================================
INSIDERS (1)
==========================================================================================
Payee Name Position Salary/Bonus/ Reimbursable
Auto Allowance Expenses Total
==========================================================================================
<S> <C> <C> <C> <C>
Alvarez & Marsal Chairman - Restructuring $ 54,167 $3,258 $ 57,425
Inc. - Joseph A.
Bondi
- ------------------------------------------------------------------------------------------
Burdette, H. Stephen Senior VP Corporate 15,000 965 15,965
Development and Senior
VP Operations
- ------------------------------------------------------------------------------------------
Grawert, Ron Chief Executive Officer 30,769 5,269 36,038
- ------------------------------------------------------------------------------------------
Gray, Patricia Secretary/VP and General 13,846 649 14,495
Counsel
- ------------------------------------------------------------------------------------------
Gross, Steven Executive VP Sales & 17,769 4,866 22,635
Marketing
- ------------------------------------------------------------------------------------------
Hilson, Debra Assistant Secretary 4,662 2,975 7,637
- ------------------------------------------------------------------------------------------
Hughes, Curtis VP Management 8,697 0 8,697
Information Systems
- ------------------------------------------------------------------------------------------
Pascucci, James Treasurer 8,077 765 8,842
- ------------------------------------------------------------------------------------------
Panzella, Vito VP / Controller 8,846 0 8,846
- ------------------------------------------------------------------------------------------
Witsaman, Mark Senior VP and Chief 15,269 3,062 18,331
Technology Officer
- ------------------------------------------------------------------------------------------
TOTAL PAYMENTS TO INSIDERS $ 198,911
==========================================================================================
</TABLE>
(1) Excludes 19 non-executive officers of subsidiaries who were paid salaries
and reimbursable expenses in the aggregate of $212,735.
Page 15 of 18
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================
PAYMENTS TO INSIDERS AND PROFESSIONALS (Continued)
For the month ended September 30, 1998
==========================================================================================
==========================================================================================
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 1/30/97 $ 311,019 $ 606,439 $ 729,305
Financial Consultants to Debtor
- ------------------------------------------------------------------------------------------
2. Latham & Watkins - Counsel to 1/30/97 104,000 -- 308,348
Debtor
- ------------------------------------------------------------------------------------------
3. Alvarez & Marsal Inc.- Restructuring 1/30/97 369,119 -- 877,517
Consultant to Debtor (2)
- ------------------------------------------------------------------------------------------
4. Sidley & Austin - Bankruptcy Counsel 1/30/97 720,443 -- 2,000,950
to Debtor
- ------------------------------------------------------------------------------------------
5. Young, Conway, Stargate & Taylor - 1/30/97 -- -- 24,865
Delaware Counsel to Debtor
- ------------------------------------------------------------------------------------------
6. Wiley, Rein & Fielding - FCC Counsel 1/30/97 127,332 -- 288,964
to Debtor
- ------------------------------------------------------------------------------------------
7. Koteen & Naftalin - FCC Counsel to 6/11/97 -- -- 3,945
Debtor
- ------------------------------------------------------------------------------------------
8. Houlihan, Lokey, Howard & Zukin - 6/04/97 330,954 -- 405,954
Advisors to the Creditors'
Committee
- ------------------------------------------------------------------------------------------
9. Jones, Day, Reavis & Pogue - Counsel 4/03/97 -- 83,809 78,760
to the Creditors' Committee
- ------------------------------------------------------------------------------------------
10. Morris, Nichols, Arsht & Tunnell - 4/03/97 -- 579 3,012
Delaware Counsel to the Creditors'
Committee
- ------------------------------------------------------------------------------------------
11. Paul, Weiss, Rifkind, Wharton & 4/25/97 -- -- 2,634
Garrison - FCC Counsel to the
Creditors' Committee
- ------------------------------------------------------------------------------------------
12. The Blackstone Group LP - Financial 7/10/97 128,704 100,000 501,795
Advisors to Debtor
- ------------------------------------------------------------------------------------------
13. Gerry, Friend & Sapronov, LLP. - 10/27/97 -- 13,099 117,272
Counsel to Debtor
====================================================--------------------------------------
TOTAL $2,091,571 $ 803,926 $ 5,343,321
==========================================================================================
</TABLE>
(1) Excludes invoices for fees and expenses through September 30, 1998 that
were received by the Debtors subsequent to September 30, 1998.
(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, 1998
===================================================================================================================================
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
===================================================================================================================================
<S> <C> <C> <C>
The Chase Manhattan Bank - (Interest) $ 3,389,825 $ 3,389,825* $ 0
===================================================================================================================================
</TABLE>
* Payment made on 10/1/98.
<TABLE>
<CAPTION>
===================================================================================================================================
QUESTIONNAIRE
For the month ended September 30, 1998 YES NO
===================================================================================================================================
<S> <C> <C>
1. Have any assets been sold or transferred outside the normal course of business this reporting period? Yes
- -----------------------------------------------------------------------------------------------------------------------------------
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? No
- -----------------------------------------------------------------------------------------------------------------------------------
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 1. On July 7, 1998, the Debtors entered into a purchase agreement with
Pinnacle Towers Inc. for the sale of their towers and certain
related assets. The sale closed on September 3, 1998
(see Footnote 4).
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) property taxes; (vii) customer refunds; and (viii)
customer rewards.
Item 5. As of September 30, 1998 there were no funded borrowings under the
DIP facility.
Page 17 of 18
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================
INSURANCE
For the month ended September 30, 1998
===============================================================================================
There were no changes in insurance coverage for the reporting period.
===============================================================================================
===============================================================================================
PERSONNEL
For the month ended September 30, 1998
===============================================================================================
Full Time Part Time
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
1. Total number of employees at beginning of period 3,034 38
- -----------------------------------------------------------------------------------------------
2. Number of employees hired during the period 15 2
- -----------------------------------------------------------------------------------------------
3. Number of employees terminated or resigned during the period 12 4
- -----------------------------------------------------------------------------------------------
4. Total number of employees on payroll at end of period 3,037 36
===============================================================================================
</TABLE>
Page 18 of 18
