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Previous: PARKER DAVID R, 4, 1998-05-29 |
Next: WESTPOINT STEVENS REC MAS TR FL RT TRAD REC PAR CE SE 1994-1, 8-K, 1998-05-29 |
<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
May 29, 1998
------------------------------------------------
Date of Report (Date of earliest event reported)
MC Liquidating Corporation
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Washington 000-26118 91-1438806
---------- ----------- ----------
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
26899 Northwestern Highway, Suite 120, Southfield, MI 48034
-----------------------------------------------------------
(Address of principal executive offices)
(248) 304-1780
----------------------------------------------------
(Registrant's telephone number, including area code)
MIDCOM Communications Inc.
--------------------------
(Former Name)
<PAGE>
ITEM 5. OTHER EVENTS.
The Company's financial and operating report for the month of December 1997
filed with the United States Bankruptcy Court for the Eastern District of
Michigan (the "Bankruptcy Court") administering the Company's bankruptcy
pursuant to Rule 2015 of the Federal Rules of Bankruptcy is filed as Exhibit
99.1 to this report.
On May 21, 1998, the Bankruptcy Court approved the sale of certain of the
Company's assets used in the Company's teleconferencing customer accounts and
related operations to Intercall, Inc. for approximately $400,000 pursuant to the
Asset Purchase Agreement dated May 1, 1998 entered into between the two
companies. This operation represented revenue of approximately $50,000 on a
monthly basis during 1998. Assuming certain closing conditions are satisfied,
the closing of such sale is expected to occur in early June. The Company's only
remaining assets thereafter are certain microwave equipment with an estimated
value of $400,000 and causes of action, including avoidance actions.
On March 13, 1998, the Official Unsecured Creditors' Committee of the
Company (the "Committee") filed with the Bankruptcy Court the plan of
liquidation and related disclosure statement to be sent to creditors. The
disclosure statement was approved by the Bankruptcy Court on May 20, 1998. The
plan of liquidation is subject to confirmation by the Bankruptcy Court at a
hearing to be held on July 10, 1998. In general, the plan of liquidation
provides for distribution, after confirmation of the plan, of all available cash
to creditors (less amounts necessary to fund reserve accounts for disputed
claims and anticipated expenses of liquidating any unliquidated assets), first
to priority claimants and then as soon as practicable thereafter to unsecured
claimants of the Company. All of the Company's unliquidated assets will be
administered by a disbursing agent who will be responsible to the Committee and
have the rights and duties of a trustee. The disbursing agent will liquidate
any unliquidated assets and make additional distributions to creditors from time
to time after the initial payment according to priorities established by the
plan, until all proceeds of the Company's assets have been distributed. Net
proceeds of the Company's assets will not be sufficient to satisfy in full
unsecured creditor claims, including sums owed to holders of the Company's
Convertible Subordinated Notes due 2003. Nor will such proceeds be sufficient
to provide any distribution in liquidation to the holders of shares of the
Company's common stock, and the plan provides that the shares will be canceled.
The Committee will be the representative of the estate for purposes of pursuing
avoidance actions and causes of action.
A complete copy of the plan of liquidation and related disclosure statement
is on file with the Bankruptcy Court and is matter of public record. Persons
wishing to obtain copies of the plan may request copies of the same in writing
sent to McTevia & Assoc., 18161 East Eight Mile Road, Eastpointe, MI 48021. In
accordance with the bankruptcy code, the Committee may amend or modify the plan
before or after the confirmation date.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 December 1997 Monthly Financial and Operating
Report filed with Bankruptcy Court
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 29, 1998 MC Liquidating Corporation
By: /s/ Kevin J. Smith
-----------------------------
Kevin J. Smith, President
and Chief Executive Officer
<PAGE>
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
99.1 Monthly Financial and Operating Report filed with Bankruptcy
Court
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MICHIGAN
In the matter of: Case Number 97-59044-S
Chapter 11 97-59052-G
97-59064-G
97-59057-S
MIDCOM Communications, Inc.
PacNet, Inc.
AdVal, Inc.
Cal-Tech International Corp.
- ----------------------------
Debtor(s) Hon. Walter Shapero
STATEMENT OF DEBTOR IN POSSESSION
UNDER BANKR.R.PRO.9011
For the Month of December, 1997
The Debtor in Possession states:
Attached is a complete and accurate (check appropriate lines)
X Balance Sheet
---
X Profit and Loss Statement
---
X Cash Receipts and Disbursements Report
---
X Accounts Payable Aging Schedule
---
X Taxes Payable/Insurance Schedule
---
X Reconciled Bank Statements
---
The statements contained within have been completed on an accrual basis. I
understand that any false statement may subject me to sanctions as provided for
in Bankr.R.Pro.9011.
/s/ Kevin J. Smith
-----------------------------------
Debtor In Possession
Kevin J. Smith, C.E.O.
MC Liquidating Corporation
Date:
A. Mail the original to: Mail one copy of this report to:
UNITED STATES BANKRUPTCY COURT OFFICE OF THE U.S. TRUSTEE
211 W. FORT STREET 477 MICHIGAN AVENUE
DETROIT, MICHIGAN 48226 SUITE 1760
DETROIT, MICHIGAN 48226
B. Mail a copy of this report to each member of the Creditor's Committee (if
any) and the attorney for the Creditors' Committee (if any).
<PAGE>
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MICHIGAN
In the matter of: Case Number: 97-59044-S
Chapter 11 97-59052-G
97-59064-G
97-59057-S
MIDCOM Communications, Inc.
PacNet Inc.
AdVal Inc.
Cel-Tech International Corp. /
Debtor(s)
BALANCE SHEET
AS OF DECEMBER 31, 1997
(000)
<TABLE>
<CAPTION>
MIDCOM PACNET CELTECH ADVAL* ELIM CONSOL
------ ------ ------- ------ ---- ------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
- ------
CURRENT ASSETS:
- --------------
Cash 2,375 (95) 5 0 0 2,285
Inter-Company Receivable 14,955 0 5,013 0 (19,968) 0
Related Party A/R 180 0 0 0 0 180
Account Receivable (Net) 18,839 1,398 244 0 0 20,481
Prepaid and Other Current Assets 5,995 86 44 0 0 6,125
-------- ------ ----- - ------- --------
TOTAL CURRENT ASSETS 42,344 1,389 5,306 0 (19,968) 29,071
FIXED ASSETS:
- ------------
Equipment, Furniture and
Fixture, Lease Improvements 32,835 6,668 91 0 0 39,594
Accum Depreciation (11,024) (3,200) (39) 0 0 (14,263)
-------- ------ ----- - ------- --------
NET FIXED ASSETS 21,811 3,468 52 0 0 25,331
OTHER ASSETS:
- ------------
Investment in Subs 855 0 0 0 (855) 0
Intangible Assets (Net) 4,481 0 0 0 0 4,481
Other Assets 676 0 5 0 0 681
-------- ------ ----- - ------- --------
TOTAL OTHER ASSETS 6,012 0 5 0 (855) 5,162
TOTAL ASSETS 70,167 4,857 5,363 0 (20,823) 59,564
-------- ------ ----- - ------- --------
LIABILITIES:
- -----------
POST PETITION LIABILITIES:
- -------------------------
Accounts Payable 825 753 23 0 0 1,601
Secured Line of Credit 10,906 0 0 0 0 10,906
Notes Payable 0 0 0 0 0 0
Rents and Leases Payable 188 0 0 0 0 188
Taxes Payable 943 66 33 0 0 1,042
Accrued Interest 1,932 0 0 0 0 1,932
Inter-company Payables 513 338 455 0 (1,306) 0
Accrued Expenses 2,256 0 3 0 0 2,259
-------- ------ ----- - ------- --------
TOTAL POST PETITION LIABILITIES 17,563 1,157 514 0 (1,306) 17,928
PRE PETITION LIABILITIES:
- ------------------------
Secured Line of Credit 21,426 0 0 0 21,426
Notes Payable 113,740 3,150 0 0 (3,150) 113,740
Capital Leases 15,748 0 0 0 15,748
Utility Taxes Payable 2,245 89 0 0 0 2,334
Accounts Payable 37,190 3,535 406 0 41,131
Accrued Expenses 12,903 257 18 0 (6) 13,172
Other Current Liabilities 7,371 25 8 0 0 7,404
Intercompany Payable 15,295 (146) 3,513 0 (18,662) 0
-------- ------ ----- - ------- --------
TOTAL PRE PETITION LIABILITIES 225,918 6,910 3,945 0 (21,818) 214,955 177784
TOTAL LIABILITIES 243,481 8,067 4,459 0 (23,124) 232,883
OWNERS' EQUITY:
- --------------
Capital Stock and Paid-in Capital 65,750 100 6 500 66,356
Retained Earnings:
Pre-petition (215,920) (3,111) 908 1,642 (216,481)
Post-petition (23,144) (199) (10) 0 159 (23,194)
-------- ------ ----- - ------- --------
TOTAL OWNERS' EQUITY (173,314) (3,210) 904 0 2,301 (173,319)
TOTAL LIABILITIES AND
OWNERS EQUITY 70,167 4,857 5,363 0 (20,823) 59,564
-------- ------ ----- - ------- --------
*Included in MIDCOM Balances. 0 0 0 0 0 0
ytd -23144 -199 -10 159 -23194
Nov-97 -5732 -35 -9 0 -5776
Dec-97 -17412 -164 -1 159 -17418
b/schg. -17412 -164 -1 159 -17418
i/s -17412 -164 4 159 -17413
0 0 -5 0 -5
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MICHIGAN
In the matter of: Case Number: 97-59044-S
Chapter 11 97-59052-G
97-59064-G
97-59057-S
MIDCOM Communications, Inc.
PacNet Inc.
AdVal Inc.
Cel-Tech International Corp. /
Debtor(s)
PROFIT AND LOSS STATEMENT
for the Period 12/1/97 through 12/31/97
(000)
<TABLE>
<CAPTION>
MIDCOM PACNET CELTECH ADVAL ELIM CONSOL
------ ------ ------- ----- ---- ------
<S> <C> <C> <C> <C> <C> <C>
Revenue 6,253 1,871 193 0 (53) 8,264
Revenue Credits (409) 0 0 0 0 (409)
-------- ----- --- - --- -------
Net Revenue 5,844 1,871 193 0 (53) 7,855
Cost of Revenue 4,538 1,205 121 0 (31) 5,833
-------- ----- --- - --- -------
Gross Margin 1,306 666 72 0 (22) 2,022
Operating Expenses:
Selling, General, and Administrative (Detail Attached) 6,800 749 66 0 (22) 7,593
Depreciation 591 67 1 0 0 659
Amortization 641 0 0 0 0 641
-------- ----- --- - --- -------
Total Operating Expenses 8,032 816 67 0 (22) 8,893
-------- ----- --- - --- -------
Non-recurring Charges:
Settlement of Contract Dispute 0 0 0 0 0 0
Restructuring Charge 10,775 0 0 0 0 10,775
Relocation Charge 0 0 0 0 0 0
Loss on Impairment of Assets 0 0 0 0 0 0
-------- ----- --- - --- -------
Total Non-recurring Charges 10,775 0 0 0 0 10,775
Total Operating Expenses 18,807 816 67 0 (22) 19,668
-------- ----- --- - --- -------
Operating Loss (17,501) (150) 5 0 0 (17,646)
Other Expense (Income):
Interest Expense, Net (104) 0 1 0 0 (103)
Other Expense (Income), Net 15 14 0 0 0 29
-------- ----- --- - --- -------
(89) 14 1 0 0 (74)
Loss Before Provision for Income Taxes (17,412) (164) 4 0 0 (17,572)
Provision for Income Taxes 0 0 0 0 0 0
-------- ----- --- - --- -------
Net Loss (17,412) (164) 4 0 0 (17,572)
-------- ----- --- - --- -------
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MICHIGAN
In the matter of: Case Number: 97-59044-S
Chapter 11 97-59052-G
97-59064-G
97-59057-S
MIDCOM Communications, Inc.
PacNet Inc.
AdVal Inc.
Cel-Tech International Corp. /
Debtor(s)
STATEMENT OF CASH FLOW
for the Period 12/1/97 through 12/31/97
(000)
<TABLE>
<CAPTION>
- -----------------------------------------------------
OPERATING ACTIVITIES:
- -----------------------------------------------------
<S> <C> <C> <C>
Net Income $ (17,542)
Non-cash charges/credits to income:
Depreciation 659
Amortization of Intangibles 641
Accounts Receivable 2,525
Prepaid Expenses (4,171)
Other Assets 4
Accounts payable/Accrued Expenses 11,638
------
Cash provided by (used in) operations (6,246)
- -----------------------------------------------------
INVESTING ACTIVITIES:
- -----------------------------------------------------
Purchases of Plant and Equipment 0
------
Loans to Related Party 0
Proceeds from sale of Assets 903
Other, net 0
Cash used in investing activities 903
Effect of exchange rate changes 0
- -----------------------------------------------------
FINANCING ACTIVITIES:
- -----------------------------------------------------
Proceeds from Foothill Borrowings 12,910
Repayment of Foothill Borrowings (7,892) 5103
Other, net (79)
--
Cash provided by (used in) financing activities 4,939
Increase (decrease) in cash (404)
Cash at beginning of period $ 2,689
Cash at end of period $ 2,285
</TABLE>
<PAGE>
UNITED STATES BANKRUPTCY
EASTERN DISTRICT OF MICHIGAN
In the matter of: Case Number: 97-59044-S
Chapter 11 97-59052-G
97-59064-G
97-59057-S
MIDCOM Communications, Inc.
PacNet Inc.
AdVal Inc.
Cel-Tech International Corp.
Debtor(s)
TAXES PAYABLE SCHEDULE
for the Period 12/1/97 through 12/31/97
(000)
<TABLE>
<CAPTION>
Beginning Payments/ Ending
Balance Additions Deposits Balance
------- --------- -------- -------
<S> <C> <C> <C> <C>
MIDCOM/ADVAL
Income Tax Withheld:
Federal 0 0 0 0
State 0 0 0 0
Local 0 0 0 0
FICA Tax Withheld 0 0 0 0
Employer's FICA Tax 0 0 0 0
Unemployment Tax:
Federal 0 0 0 0
State 0 0 0 0
Sales Use & Excise Tax 3,069,844.20 357,556.21 (612,435.08) 2,814,965.33
Accrued Income Tax:
Federal 0.00 0.00 0.00 0.00
State 0.00 0.00 0.00 0.00
Other 162,201.13 248,167.00 (36,608.61) 373,759.52
Total 3,232,045.33 605,723,21 (649,043.69) 3,188,724.85
------------ ---------- ----------- ------------
PACNET
Income Tax Withheld:
Federal 0 0 0 0
State 0 0 0 0
Local 0 0 0 0
FICA Tax Withheld 0 0 0 0
Employer's FICA Tax 0 0 0 0
Unemployment Tax:
Federal 0 0 0 0
State 0 0 0 0
Sales Use & Excise Tax 182,944.08 269,611.86 (299,152.26) 153,403.68
Accrued Income Tax:
Federal 0.00 0.00 0.00 0.00
State 0.00 0.00 0.00 0.00
Other 1,173.12 1,344.85 0.00 1,173.12
Total 184,117.20 270,956.71 (299,152.26) 154,576.80
---------- ---------- ----------- ----------
CELTECH
Income Tax Withheld:
Federal 0 0 0 0
State 0 0 0 0
Local 0 0 0 0
FICA Tax Withheld 0 0 0 0
Employer's FICA Tax 0 0 0 0
Unemployment Tax:
Federal 0 0 0 0
State 0 0 0 0
Sales Use & Excise Tax 28,077.29 38,460.03 (35,614.94) 30,932.38
Accrued Income Tax:
Federal 0.00 0.00 0.00 0.00
State 0.00 0.00 0.00 0.00
Other 2,266.62 0.00 (160.55) 2,106.07
Total 30,343.91 38,460.03 (35,775.49) 33,028.45
--------- --------- ---------- ---------
</TABLE>
<PAGE>
Case Number: 97-59044-S
Chapter 11 97-59052-G
97-59064-G
97-59057-S
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MICHIGAN
In the matter of:
MIDCOM Communications, Inc.
PacNet Inc.
AdVal Inc.
Cel-Tech International Corp.
Debtor(s)
INSURANCE COVERAGE
DECEMBER 1997
<TABLE>
<CAPTION>
MIDCOM/PACNET/ADVAL/CELTECH
POLICY PREMIUM
EXPIRATION PAID THROUGH
TYPE: POLICYHOLDER/POLICY NUMBER DATE DATE
----- -------------------------- ---------- ------------
<S> <C> <C> <C>
Property/Liability/Computerized CIGNA/GPP D 33524791 05/01/98 01/31/98
Business Equipment/Crime/Auto
Package Policy-Texas Only CIGNA/TCP 33908611 05/01/98 05/01/98
Umbrella Indemnity Insurance Co. of NA/ 05/01/98 05/01/98
XOO G1882140A
Difference in Conditions including RLI Insurance Co/ IMF 024737 06/18/98 06/18/98
Earthquake and Flood
Directors & Officers Liability National Union Fire Ins Co./ 01/24/00 06/24/98
4848235
Directors & Officers - Genesis Indemnity Ins Co/ 06/08/98 06/08/98
Prospectus Liability ZXB 000837
Financial Guarantee Bond Contractors Bonding and until cancelled 02/13/98
Insurance Co/ FL 2183
Workers' Compensation Insurance Hartford Fire Insurance Co/ 11/01/98 01/31/98
52WBEM6171
PACNET
Property/Liability/Computerized CIGNA/GPP D 33524791 05/01/98 01/31/98
Business Equipment/Crime/Auto
Package Policy-Texas Only CIGNA/TCP 33908611 05/01/98 05/01/98
Umbrella Indemnity Insurance Co. of NA/ 05/01/98 05/01/98
XOO G1882140A
Difference in Conditions including RLI Insurance Co/ IMF 024737 06/18/98 06/18/98
Earthquake and Flood
Directors & Officers Liability National Union Fire Ins Co./ 01/24/00 06/24/98
4848235
Directors & Officers - Genesis Indemnity Ins Co/ 06/08/98 06/08/98
Prospectus Liability ZXB 000837
Financial Guarantee Bond Contractors Bonding and until cancelled 02/13/98
Insurance Co/ FL 2183
Workers' Compensation Insurance Hartford Fire Insurance Co/ 11/01/98 01/31/98
52WBEM6171
CELTECH
Property/Liability/Computerized CIGNA/GPP D 33524791 05/01/98 01/31/98
Business Equipment/Crime/Auto
Package Policy-Texas Only CIGNA/TCP 33908611 05/01/98 05/01/98
Umbrella Indemnity Insurance Co. of NA/ 05/01/98 05/01/98
XOO G1882140A
Difference in Conditions including RLI Insurance Co/ IMF 024737 06/18/98 06/18/98
Earthquake and Flood
Directors & Officers Liability National Union Fire Ins Co./ 01/24/00 06/24/98
4848235
Directors & Officers - Genesis Indemnity Ins Co/ 06/08/98 06/08/98
Prospectus Liability ZXB 000837
Financial Guarantee Bond Contractors Bonding and until cancelled 02/13/98
Insurance Co/ FL 2183
Workers' Compensation Insurance Hartford Fire Insurance Co/ 11/01/98 01/31/98
52WBEM6171
</TABLE>
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