EXHIBIT 99.4
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
JUDGE: BARBARA J. HOUSER
UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF TEXAS
SIXTH DIVISION
MONTHLY OPERATING REPORT
MONTH ENDING: SEPTEMBER 30, 2000
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-7) 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/ DREW KEITH CFO
--------------------------------------- -------------------------------------
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY TITLE
Drew Keith 10/20/00
--------------------------------------- -------------------------------------
PRINTED NAME OF RESPONSIBLE PARTY DATE
PREPARER:
/s/ JESSICA L. WILSON Chief Accounting Officer
--------------------------------------- -------------------------------------
ORIGINAL SIGNATURE OF PREPARER TITLE
Jessica L. Wilson 10/20/00
--------------------------------------- -------------------------------------
PRINTED NAME OF PREPARER DATE
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-1
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEET
MONTH MONTH MONTH
SCHEDULE --------------------------------------------------------
ASSETS AMOUNT JULY 2000 AUGUST 2000 SEPTEMBER 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. UNRESTRICTED CASH $40,098 $30,292 $30,292 $30,292
------------------------------------------------------------------------------------------------------------------
2. RESTRICTED CASH $0 $0 $7,059,605
------------------------------------------------------------------------------------------------------------------
3. TOTAL CASH $40,098 $30,292 $30,292 $7,089,897
------------------------------------------------------------------------------------------------------------------
4. ACCOUNTS RECEIVABLE (NET) $9,006,275 $7,911,886 $7,373,845 $7,368,368
------------------------------------------------------------------------------------------------------------------
5. INVENTORY $20,429,725 $20,185,546 $20,210,735 $4,277,599
------------------------------------------------------------------------------------------------------------------
6. NOTES RECEIVABLE $0 $0 $0
------------------------------------------------------------------------------------------------------------------
7. PREPAID EXPENSES $258,310 $98,969 $57,002
------------------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) $21,367,511 ($348,677,077) ($349,262,961) ($350,714,562)
------------------------------------------------------------------------------------------------------------------
9. TOTAL CURRENT ASSETS $50,843,609 ($320,291,043) ($321,549,120) ($331,921,696)
------------------------------------------------------------------------------------------------------------------
10. PROPERTY, PLANT & EQUIPMENT $474,988,760 $566,864,544 $566,833,977 $553,211,713
------------------------------------------------------------------------------------------------------------------
11. LESS: ACCUMULATED
DEPRECIATION/DEPLETION $89,110,093 $89,107,595 $86,299,859
------------------------------------------------------------------------------------------------------------------
12. NET PROPERTY, PLANT &
EQUIPMENT $474,988,760 $477,754,451 $477,726,382 $466,911,854
------------------------------------------------------------------------------------------------------------------
13. DUE FROM INSIDERS $599,113 $0 $0
------------------------------------------------------------------------------------------------------------------
14. OTHER ASSETS - NET OF
AMORTIZATION (ATTACH LIST) $0 $0 $0
------------------------------------------------------------------------------------------------------------------
15. OTHER (ATTACH LIST) $0 $0 $0
------------------------------------------------------------------------------------------------------------------
16. TOTAL ASSETS $525,832,369 $158,062,521 $156,177,262 $134,990,158
------------------------------------------------------------------------------------------------------------------
POSTPETITION LIABILITIES
------------------------------------------------------------------------------------------------------------------
17. ACCOUNTS PAYABLE $94,965 $107,731 $101,079
------------------------------------------------------------------------------------------------------------------
18. TAXES PAYABLE $0 $0 $0
------------------------------------------------------------------------------------------------------------------
19. NOTES PAYABLE $0 $0 $0
------------------------------------------------------------------------------------------------------------------
20. PROFESSIONAL FEES $0 $0 $0
------------------------------------------------------------------------------------------------------------------
21. SECURED DEBT $0 $0 $0
------------------------------------------------------------------------------------------------------------------
22. OTHER (ATTACH LIST) ($726,656) ($967,240) ($9,371,337)
------------------------------------------------------------------------------------------------------------------
23. TOTAL POSTPETITION
LIABILITIES ($631,691) ($859,509) ($9,270,258)
------------------------------------------------------------------------------------------------------------------
PREPETITION LIABILITIES
------------------------------------------------------------------------------------------------------------------
24. SECURED DEBT $23,187,921 $23,109,424 $23,109,424 $22,996,901
------------------------------------------------------------------------------------------------------------------
25. PRIORITY DEBT $4,672,323 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
26. UNSECURED DEBT $392,188,633 $14,942,082 $17,477,245 $17,596,321
------------------------------------------------------------------------------------------------------------------
27. OTHER (ATTACH LIST) $92,595,199 $88,750,302 $88,607,241
------------------------------------------------------------------------------------------------------------------
28. TOTAL PREPETITION LIABILITIES $420,048,877 $130,646,705 $129,336,971 $129,200,463
------------------------------------------------------------------------------------------------------------------
29. TOTAL LIABILITIES $420,048,877 $130,015,014 $128,477,462 $119,930,205
------------------------------------------------------------------------------------------------------------------
EQUITY
------------------------------------------------------------------------------------------------------------------
30. PREPETITION OWNERS' EQUITY $29,200,132 $29,200,132 $29,200,132
------------------------------------------------------------------------------------------------------------------
31. POSTPETITION CUMULATIVE
PROFIT OR (LOSS) ($1,152,625) ($1,500,332) ($14,140,179)
------------------------------------------------------------------------------------------------------------------
32. DIRECT CHARGES TO EQUITY
(ATTACH EXPLANATION)
------------------------------------------------------------------------------------------------------------------
33. TOTAL EQUITY $0 $28,047,507 $27,699,800 $15,059,953
------------------------------------------------------------------------------------------------------------------
34. TOTAL LIABILITIES &
OWNERS' EQUITY $420,048,877 $158,062,521 $156,177,262 $134,990,158
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-2
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
INCOME STATEMENT
MONTH MONTH MONTH
---------------------------------------------- QUARTER
REVENUES July 2000 August 2000 September 2000 TOTAL
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. GROSS REVENUES $0 $14,500 $0 $14,500
------------------------------------------------------------------------------------------------------
2. LESS: RETURNS & DISCOUNTS $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
3. NET REVENUE $0 $14,500 $0 $14,500
------------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
------------------------------------------------------------------------------------------------------
4. MATERIAL $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
5. DIRECT LABOR $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
6. DIRECT OVERHEAD $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
7. TOTAL COST OF GOODS SOLD $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
8. GROSS PROFIT $0 $14,500 $0 $14,500
------------------------------------------------------------------------------------------------------
OPERATING EXPENSES
------------------------------------------------------------------------------------------------------
9. OFFICER/INSIDER COMPENSATION $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
10. SELLING & MARKETING $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
11. GENERAL & ADMINISTRATIVE $190,377 $174,931 $61,018 $426,326
------------------------------------------------------------------------------------------------------
12. RENT & LEASE $21,437 $0 $67,233 $88,670
------------------------------------------------------------------------------------------------------
13. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
14. TOTAL OPERATING EXPENSES $211,814 $174,931 $128,251 $514,996
------------------------------------------------------------------------------------------------------
15. INCOME BEFORE NON-OPERATING
INCOME & EXPENSE ($211,814) ($160,431) ($128,251) ($500,496)
------------------------------------------------------------------------------------------------------
OTHER INCOME & EXPENSES
------------------------------------------------------------------------------------------------------
16. NON-OPERATING INCOME (ATT. LIST) $0 $108,626 ($249,924) ($141,298)
------------------------------------------------------------------------------------------------------
17. NON-OPERATING EXPENSE (ATT. LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
18. INTEREST EXPENSE $386,989 $310,537 $371,191 $1,068,717
------------------------------------------------------------------------------------------------------
19. DEPRECIATION/DEPLETION $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
20. AMORTIZATION $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
21. OTHER (ATTACH LIST) $0 $0 $20,816,809 $20,816,809
------------------------------------------------------------------------------------------------------
22. NET OTHER INCOME & EXPENSES $386,989 $419,163 $20,938,076 $21,744,228
------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
------------------------------------------------------------------------------------------------------
23. PROFESSIONAL FEES $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
24. U.S. TRUSTEE FEES $0 $0 $250 $250
------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------
26. TOTAL REORGANIZATION EXPENSES $0 $0 $250 $250
------------------------------------------------------------------------------------------------------
27. INCOME TAX ($239,521) ($231,838) ($8,426,532) ($8,897,891)
------------------------------------------------------------------------------------------------------
28. NET PROFIT (LOSS) ($359,282) ($347,756) ($12,640,045) ($13,347,083)
------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-3
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
MONTH MONTH MONTH
CASH RECEIPTS AND -------------------------------------------------- QUARTER
DISBURSEMENTS JULY 2000 AUGUST 2000 SEPTEMBER 2000 TOTAL
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. CASH - BEGINNING OF MONTH $30,292 $30,292 $30,292 $30,292
----------------------------------------------------------------------------------------------------------
RECEIPTS FROM OPERATIONS
----------------------------------------------------------------------------------------------------------
2. CASH SALES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
COLLECTION OF ACCOUNTS RECEIVABLE
----------------------------------------------------------------------------------------------------------
3. PREPETITION $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
4. POSTPETITION $5,000 $690,326 $7,150 $702,476
----------------------------------------------------------------------------------------------------------
5. TOTAL OPERATING RECEIPTS $5,000 $690,326 $7,150 $702,476
----------------------------------------------------------------------------------------------------------
NON - OPERATING RECEIPTS
----------------------------------------------------------------------------------------------------------
6. LOANS & ADVANCES (ATTACH LIST) $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
7. SALE OF ASSETS $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
8. OTHER (ATTACH LIST) ($5,000) ($690,326) ($7,150) ($702,476)
----------------------------------------------------------------------------------------------------------
9. TOTAL NON-OPERATING RECEIPTS ($5,000) ($690,326) ($7,150) ($702,476)
----------------------------------------------------------------------------------------------------------
10. TOTAL RECEIPTS $0 ($0) $0 ($0)
----------------------------------------------------------------------------------------------------------
11. TOTAL CASH AVAILABLE $30,292 $30,292 $30,292 $30,292
----------------------------------------------------------------------------------------------------------
OPERATING DISBURSEMENTS
----------------------------------------------------------------------------------------------------------
12. NET PAYROLL $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
13. PAYROLL TAXES PAID $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
14. SALES, USE & OTHER TAXES PAID $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
15. SECURED/RENTAL/LEASES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
16. UTILITIES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
17. INSURANCE $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
18. INVENTORY PURCHASES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
19. VEHICLE EXPENSES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
20. TRAVEL $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
21. ENTERTAINMENT $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
22. REPAIRS & MAINTENANCE $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
23. SUPPLIES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
24. ADVERTISING $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
25. OTHER (ATTACH LIST) $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
26. TOTAL OPERATING DISBURSEMENTS $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
REORGANIZATION EXPENSES
----------------------------------------------------------------------------------------------------------
27. PROFESSIONAL FEES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
28. U.S. TRUSTEE FEES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
29. OTHER (ATTACH LIST) $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
30. TOTAL REORGANIZATION EXPENSES $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
31. TOTAL DISBURSEMENTS $0 $0 $0 $0
----------------------------------------------------------------------------------------------------------
32. NET CASH FLOW $0 ($0) $0 ($0)
----------------------------------------------------------------------------------------------------------
33. CASH - END OF MONTH $30,292 $30,292 $30,292 $30,292
----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
------------- -------------
| REOC | | LEGACY |
| ENTITY | | ENTITY |
------------- -------------
| | | |
| | 50% 50% | |
| | | |
| ---------------- |
49.5%| | LLC | |49.5%
| | |
| ----------------
| |
| | 1%
| |
--------------------------- ---------------------------
| LP | | UBS |
| | | |
--------------------------- ---------------------------
\ /
gp \ 50% lp / Preference 50%
\ /
\ /
---------------------------------------
| LP |
| |
---------------------------------------
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-4
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
<TABLE>
<CAPTION>
MONTH MONTH MONTH
SCHEDULE -------------------------------------------------
ACCOUNTS RECEIVABLE AGING AMOUNT JULY 2000 AUGUST 2000 SEPTEMBER 2000
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. 0-30 ($21,000) $0 ($36,600)
------------------------------------------------------------------------------------------------------------------
2. 31-60 ($16,000) $0 $0
------------------------------------------------------------------------------------------------------------------
3. 61-90 $200 $0 $0
------------------------------------------------------------------------------------------------------------------
4. 91+ $7,948,686 $7,373,845 $7,404,968
------------------------------------------------------------------------------------------------------------------
5. TOTAL ACCOUNTS RECEIVABLE $0 $7,911,886 $7,373,845 $7,368,368
------------------------------------------------------------------------------------------------------------------
6. AMOUNT CONSIDERED UNCOLLECTIBLE $0 $0 $0
------------------------------------------------------------------------------------------------------------------
7. ACCOUNTS RECEIVABLE (NET) $0 $7,911,886 $7,373,845 $7,368,368
------------------------------------------------------------------------------------------------------------------
AGING OF POSTPETITION TAXES AND PAYABLES MONTH: September 2000
0-30 31-60 61-90 91+
TAXES PAYABLE DAYS DAYS DAYS DAYS TOTAL
------------------------------------------------------------------------------------------------------------------
1. FEDERAL $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
2. STATE $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
3. LOCAL $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
4. OTHER (ATTACH LIST) $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
5. TOTAL TAXES PAYABLE $0 $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
6. ACCOUNTS PAYABLE $36,350 $1,140 ($895) $64,484 $101,079
------------------------------------------------------------------------------------------------------------------
STATUS OF POSTPETITION TAXES MONTH: September 2000
BEGINNING AMOUNT ENDING
TAX WITHHELD AND/ AMOUNT TAX
FEDERAL LIABILITY* 0R ACCRUED PAID LIABILITY
------------------------------------------------------------------------------------------------------------------
1. WITHHOLDING** $0 $4,894 $4,894 $0
------------------------------------------------------------------------------------------------------------------
2. FICA-EMPLOYEE** $0 0 $0 $0
------------------------------------------------------------------------------------------------------------------
3. FICA-EMPLOYER** $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
4. UNEMPLOYMENT $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
5. INCOME $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
6. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
7. TOTAL FEDERAL TAXES $0 $4,894 $4,894 $0
------------------------------------------------------------------------------------------------------------------
STATE AND LOCAL
------------------------------------------------------------------------------------------------------------------
8. WITHHOLDING $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
9. SALES $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
10. EXCISE $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
11. UNEMPLOYMENT $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
12. REAL PROPERTY $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
13. PERSONAL PROPERTY $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
14. OTHER (ATTACH LIST) $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
15. TOTAL STATE & LOCAL $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------------
16. TOTAL TAXES $0 $4,894 $4,894 $0
------------------------------------------------------------------------------------------------------------------
</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 or deposit.
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-5
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
The debtor in possession must complete the reconciliation below for each bank
account, including all general, payroll and tax accounts, as well as all savings
and investment accounts, money market accounts, certificates of deposit,
government obligations, etc. Accounts with restricted funds should be identified
by placing an asterisk next to the account number. Attach additional sheets if
necessary.
<TABLE>
<CAPTION>
MONTH: September 2000
BANK RECONCILIATIONS
Account #1 Account #2 Account #3
------------------------------------------------------------------------------------------------------------
A. BANK: Bank One Bank One Bank One
----------------------------------------------------------------------------------------------
B. ACCOUNT NUMBER: 1559691322 1559691330 9320014690 TOTAL
----------------------------------------------------------------------------------------------
C. PURPOSE (TYPE): Deposit Payroll Health Insurance
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. BALANCE PER BANK STATEMENT $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------
2. ADD: TOTAL DEPOSITS NOT CREDITED $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------
3. SUBTRACT: OUTSTANDING CHECKS $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------
4. OTHER RECONCILING ITEMS $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------
5. MONTH END BALANCE PER BOOKS $0 $0 $0 $0
------------------------------------------------------------------------------------------------------------
6. NUMBER OF LAST CHECK WRITTEN N/A - Lockbox only No activity Account closed
------------------------------------------------------------------------------------------------------------
INVESTMENT ACCOUNTS
DATE OF TYPE OF PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
------------------------------------------------------------------------------------------------------------
7. N/A
------------------------------------------------------------------------------------------------------------
8. N/A
------------------------------------------------------------------------------------------------------------
9. N/A
------------------------------------------------------------------------------------------------------------
10. N/A
------------------------------------------------------------------------------------------------------------
11. TOTAL INVESTMENTS $0 $0
------------------------------------------------------------------------------------------------------------
CASH
------------------------------------------------------------------------------------------------------------
12. CURRENCY ON HAND $30,292
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
13. TOTAL CASH - END OF MONTH $30,292
------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-6
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
MONTH: September 2000
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
--------------------------------------------------------------------
TYPE OF AMOUNT TOTAL PAID
NAME PAYMENT PAID TO DATE
--------------------------------------------------------------------
1. Pete Sanderlin Salary $0 $17,200
--------------------------------------------------------------------
2. Tom Mealie Salary $0 $17,200
--------------------------------------------------------------------
3. N/A
--------------------------------------------------------------------
4. N/A
--------------------------------------------------------------------
5. N/A
--------------------------------------------------------------------
6. TOTAL PAYMENTS
TO INSIDERS $0 $34,400
--------------------------------------------------------------------
PROFESSIONALS
--------------------------------------------------------------------------------
DATE OF COURT TOTAL
ORDER AUTHORIZING AMOUNT AMOUNT TOTAL PAID INCURRED
NAME PAYMENT APPROVED PAID TO DATE & UNPAID*
--------------------------------------------------------------------------------
1. N/A
--------------------------------------------------------------------------------
2. N/A
--------------------------------------------------------------------------------
3. N/A
--------------------------------------------------------------------------------
4. N/A
--------------------------------------------------------------------------------
5. N/A
--------------------------------------------------------------------------------
6. TOTAL PAYMENTS
TO PROFESSIONALS $0 $0 $0 $0
--------------------------------------------------------------------------------
* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED
POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
SCHEDULED AMOUNTS
MONTHLY PAID TOTAL
PAYMENTS DURING UNPAID
NAME OF CREDITOR DUE MONTH POSTPETITION
--------------------------------------------------------------------------------
1. GE Capital $4,038 $20,190 $0
--------------------------------------------------------------------------------
2. GE Capital $4,402 $22,010 $0
--------------------------------------------------------------------------------
3. GE Capital varies $70,321 $0
--------------------------------------------------------------------------------
4. N/A $0
--------------------------------------------------------------------------------
5. N/A $0
--------------------------------------------------------------------------------
6. TOTAL $8,440 $112,521 $0
--------------------------------------------------------------------------------
<PAGE>
MONTHLY OPERATING REPORT
CASE NAME: KITTY HAWK INTERNATIONAL, INC. ACCRUAL BASIS-7
CASE NUMBER: 400-42144 02/13/95, RWD, 2/96
MONTH: September 2000
QUESTIONNAIRE
--------------------------------------------------------------------------------
YES NO
--------------------------------------------------------------------------------
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 10 - there are equipment lease payments due 5/00 and 6/00 still
outstanding. These will be settled upon acceptance/rejection of leases.
--------------------------------------------------------------------------------
Item 4 - In September, GE Capital was paid current (since 5/00) for debt
outstanding as equipment was located and used in operations.
--------------------------------------------------------------------------------
Item 1 - Certain Inventory and aircraft rotable parts were sold in a partial
auction during August and September 2000. The Company generated $7.4 million of
proceeds. The cash is being held as restricted cash as the assets sold are
collateral for Wells Fargo Bank.
--------------------------------------------------------------------------------
INSURANCE
--------------------------------------------------------------------------------
YES NO
--------------------------------------------------------------------------------
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT? X
--------------------------------------------------------------------------------
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X
--------------------------------------------------------------------------------
3. PLEASE ITEMIZE POLICIES BELOW.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INSTALLMENT PAYMENTS
--------------------------------------------------------------------------------
TYPE OF PAYMENT AMOUNT
POLICY CARRIER PERIOD COVERED & FREQUENCY
--------------------------------------------------------------------------------
See Kitty Hawk, Inc. Case #400-42141
--------------------------------------------------------------------------------
<PAGE>
CASE NAME: KITTY HAWK INTERNATIONAL, INC. FOOTNOTES SUPPLEMENT
CASE NUMBER: 400-42144 ACCRUAL BASIS
<TABLE>
<CAPTION>
MONTH: September 2000
------------------------------------------------------------------------------------------------------------------------------
ACCRUAL BASIS LINE
FORM NUMBER NUMBER FOOTNOTE/EXPLANATION
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
6 All Professional fees related to the Reorganization of the
Company are disbursed out of Kitty Hawk, Inc. (Parent
Company). Refer to Case # 400-42141
------------------------------------------------------------------------------------------------------------------------------
7 All insurance plans related to the Company are carried
at Kitty Hawk, Inc. (Parent Company). Refer to Case #
400-42141.
------------------------------------------------------------------------------------------------------------------------------
General This operation closed in May of 2000. Costs incurred during
September 2000 consisted of costs associated with shut down
procedures, maintaining collateral and writing off uncollectible receivables.
------------------------------------------------------------------------------------------------------------------------------
3 8 All cash received into the Company cash accounts is swept
each night to Kitty Hawk, Inc. Master Account (see Case
#400-42141).
------------------------------------------------------------------------------------------------------------------------------
3 31 All disbursements (either by wire transfer or check), including payroll, are
disbursed out of the Kitty Hawk, Inc. controlled disbursement
account.
------------------------------------------------------------------------------------------------------------------------------
4 6 All assessments of uncollectible accounts receivable are done
at Kitty Hawk, Inc. Refer to Case #400-4214. All reserves
are recorded at Inc. and pushed down to Inc.'s subsidiaries
as deemed necessary.
------------------------------------------------------------------------------------------------------------------------------
3 28 All payments are made by Kitty Hawk, Inc. (Case #400-42141)
------------------------------------------------------------------------------------------------------------------------------
General In August and September 2000, Kitty Hawk International conducted a partial
auction of aircraft parts, which generated approximately $7.4 million in proceeds
The cash proceeds are held in a separate operating account as distinct
funds as the aircraft parts are collateral on the Company's bank loans.
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CASE NAME: KITTY HAWK INTERNATIONAL, INC.
CASE NUMBER: 400-42144
DETAILS OF OTHER ITEMS
ACCRUAL BASIS-1 September 2000
8. OTHER (ATTACH LIST) $ (350,714,562)Reported
-----------------------
Intercompany Receivables (378,761,952)
A/R Senior Noteholders (288,020)
A/R Other (87,674)
A/R 401(k) Loan (10,048)
A/R Employees (1,470)
A/R Insurance 133,954
A/R Payroll Advance 680
A/R Travel Advance (520)
A/R Auction Proceeds 737,207
A/R Starman Brothers Auction (418,617)
A/R Pass Thru billings (114,500)
A/R Aging Reconciling item 33,951
Fuel Inventory 25,430
Fuel Intoplane suspense 9,580
Deferred Taxes 13,097,746
Aircraft held for resale 13,798,267
Intangible Brazil Landings 377,745
Loan Org Costs 119,130
Deposits - Landing Fees 5,016
Deposits - Aircraft 584,321
Accum Amortization (379,854)
Security Deposit 425,066
-----------------------
(350,714,562)Detail
-----------------------
- Difference
22. OTHER (ATTACH LIST) $ (9,371,337)Reported
-----------------------
Accrued income taxes (9,426,787)
Accrued Misc 29,882
Accrued A/P 17,126
Accrued 401(k) (5,281)
Accrued payroll taxes 873
Accrued Salaries/Wages -
Accrued Fuel 12,850
-----------------------
(9,371,337)Detail
-----------------------
- Difference
<PAGE>
CASE NAME: KITTY HAWK INTERNATIONAL, INC.
CASE NUMBER: 400-42144
DETAILS OF OTHER ITEMS
27. OTHER (ATTACH LIST) $ 88,607,241 Reported
-----------------------
Deferred Taxes 87,246,212
Accrued Taxes payable (18,954,646)
Aircraft Maintenance Reserves 11,514,163
Accrued Fuel expenses 5,403,028
Prepaid Fuel (5,661,963)
Accrued Salaries/Vacation/Employee Benefits 4,075,349
Uncleared 4/28/00 Payroll Checks 66,601
A/P Other/Accrued/Unrecorded (273,916)
Purchase reserves 1,762,176
Accrued Landing fees/parking/cargo fees 1,644,307
Various accrued taxes 1,313,200
Other Misc accruals 472,730
-----------------------
88,607,241 Detail
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- Difference
ACCRUAL BASIS-2
17. NON-OPERATING EXPENSE (ATT. LIST) ($249,924)Reported
-----------------------
Gain on asset sale to Connie Kalitta (200,000)
Fuel tax refunds (12,236)
Legal recovery of Captains Checks (37,688)
-----------------------
(249,924)Detail
-----------------------
- Difference
21. OTHER (ATTACH LIST) 20,816,809 Reported
-----------------------
Loss on Auction 20,816,809 Detail
-----------------------
- Difference
ACCRUAL BASIS-3
8. OTHER (ATTACH LIST) (7,150)Reported
-----------------------
Transfer to Inc - all money sweeps (7,150)Detail
-----------------------
to KH Inc. Case #400-42141 - Difference
-----------------------
