8-K 1 n8k12805final.txt UNITED STATES 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) January 28, 2005 NUTRITIONAL SOURCING CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware 33-63372 65-0415593 ------------------------------ --------------- ---------------------- (State or other jurisdiction (Commission (I.R.S. employer of incorporation) File Number) identification no.) 1300 N.W. 22nd Street Pompano Beach, Florida 33069 ---------------------------------------- ----------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (954) 977-2500 --------------- Registrant's worldwide web address: www.pueblo.net Registrant's former name or former address, if changed since last report ----------------------------------------------------------------------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [X] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) ITEM 7.01 REGULATION FD DISCLOSURE On January 28, 2005, Nutritional Sourcing Corporation, the parent corporation of Pueblo International, LLC, announced the commencement of a tender offer (the "Invitation") for its outstanding 10.125% Senior Secured Notes due 2009 (the "Notes"). The maximum amount available to the Company to fund the purchase of the notes is $42.0 million; as a consequence, the Company will accept for purchase less than all of the outstanding Notes. The offer requires the valid tender of at least a simple majority of the aggregate principal amount of Notes outstanding excluding Notes owned by the Company or by any affiliate of the Company and stipulates that each Noteholder tendering Notes will be deemed to have consented to an amendment to the indenture under which the Notes were issued. The amendment will permit the Company to discontinue its reporting to the Securities and Exchange Commission and making such reports available to the Noteholders. The amendment will not become effective unless a the majority of the Notes are purchased under the invitation, but if effective will bind all Noteholders. No separate fee will be paid for the consent. The Company is making the offer by way of a "Modified Dutch Auction" procedure. Under this procedure, the Company will accept offers in the order of lowest to highest offer prices, continuing until the Company has purchased Notes at an aggregate purchase price (excluding accrued interest) of $42.0 million. Under this procedure, the Company will pay to each Noteholder whose offer is accepted the highest price offered for Notes and accepted by the Company (the "Clearing Price"), even if that price is higher than the price offered by such Noteholder. Under this procedure, all offers of Notes below the Clearing Price will be accepted and all offers above the Clearing Price will be rejected. However, to the extent acceptance of all offers at the Clearing Price would cause the aggregate purchase price (excluding accrued interest) to exceed $42.0 million, the Company will allocate its acceptance of offers at the Clearing Price among all such offers on a pro rata basis with holders of Notes being tendered in denominations under $1,000 being given priority. The Company is amending and restating its Senior Credit Facility with Westernbank Of Puerto Rico to provide an additional $45.0 million in funding for this transaction (including accrued interest and related expenses). The amendment and restatement of the Facility will become effective only if the Notes are purchased pursuant to the Invitation. ITEM 9 EXHIBITS (c) Exhibit. Document Description 20.1 Invitation by Nutritional Sourcing Corporation to Holders to offer to sell for cash at prices designated by the offering Holders any or all of their holdings of 10.125% Senior Secured Notes Due 2009. 20.2 Nutritional Sourcing Corporation Instructions to Record Holder. 20.3 Nutritional Sourcing Corporation Letter of Transmittal Pursuant to the Invitation dated January 28, 2005 to Tender 10.125% Senior Secured Notes Due 2009 (CUSIP No. 670688AA8). 20.4 Nutritional Sourcing Corporation Notice of Guaranteed Delivery for the Invitation with respect to 10.125% Senior Secured Notes Due 2009. 20.5 Nutritional Sourcing Corporation Invitation to Beneficial Owners with respect to 10.125% Senior Secured Notes Due 2009. 99.1 Nutritional Sourcing Corporation Invitation to Brokers, Dealers, Commercial Banks, Trust Companies and Nominees with respect to 10.125% Senior Secured Notes Due 2009. 99.2 Press release Nutritional Sourcing Corporation announces Modified Dutch Auction Tender Offer for its 10.125% Senior Secured Notes Due 2009. 99.3 Amended and Restated Loan and Security Agreement by and between Westernbank Puerto Rico (Business Credit Division) as Lender and Pueblo International, LLC, FLBN LLC, FLBN/SUB-BASE LLC as Borrowers and Nutritional Sourcing Corporation dated January 28, 2005. SIGNATURE 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. Nutritional Sourcing Corporation January 28, 2005 By: /s/ Daniel J. O'Leary --------------------------- Daniel J. O'Leary Executive Vice President and Chief Financial Officer 2 - 2 -

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- APRIL 20, 2003 SEPTEMBER 4, 2002 TO TO MAY 17, 2003 MAY 17,2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 1,328 11,881 Interest expense: amortization of original issue discount (36) (327) ----------------- ----------------- Net interest income 1,292 11,553 ----------------- ----------------- NET INCOME (LOSS) BEFORE REORGANIZATION ITEMS AND TAXES 1,292 11,553 Reorganization items 525 3,664 ----------------- ----------------- NET INCOME (LOSS) BEFORE TAXES 767 7,890 Income Tax expense 0 174 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES 767 7,716 Equity in earnings (loss) of subsidiaries (1,807) (151,726)(1) ----------------- ----------------- NET INCOME (LOSS) $ (1,040) $ (144,010) ================= =================

AS OF ------------------------------ MAY 17, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 14 $ 0 Accounts receivable 20,755 9,662 Notes receivable, net of Unamortized Premium of $250 and $1,040 as of May 17, 2003 and September 4, 2002, respectively 162,033 161,243 Prepaid expenses 195 1,660 -------------- -------------- TOTAL CURRENT ASSETS 182,997 172,565 Bond issue costs - 1993 issue 98 426 Deferred tax asset - original issue discount 1,579 1,209 Equity in subsidiaries (91,908) 59,817 -------------- -------------- TOTAL ASSETS $ 92,766 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 0 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses 1,076 0 Deferred income taxes payable 544 0 Intercompany payable 1,139 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 2,759 197,411 Other liabilities 0 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 2,759 0 LIABILITIES SUBJECT TO COMPROMISE 197,411 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 91,500 91,500 Retained earnings (deficit) (198,904) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 92,766 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 176,231 Interest payable 9,977 Intercompany payable 11,203 -------------- $ 197,411 ==============

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM APRIL 20, 2003 FROM SEPTEMBER 4, 2002 TO MAY 17, 2003 TO MAY 17, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 4 $ 0 $ 1,065 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 4 0 1,065 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees 0 0 1,043 3,840 U.S. Trustee fees 4 0 8 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS 4 0 1,051 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ 0 $ 0 $ 14 $ 0 ============= ============= ============ =============

FOR THE PERIOD SEPTEMBER 4, 2002 TO MAY 17, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 82,091 $ 82,091 $ 0 $ 82,091 Ashby & Geddes 26,144 6,184 19,960 26,144 Bowne of Miami 16,485 1,563 14,922 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 50,000 50,000 0 50,000 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 240,307 5,364 234,943 240,307 Jeffries & Company 1,093,559 642,301 451,258 1,093,559 Milbank, Tweed, Hadley & McCloy 140,000 0 140,000 140,000 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP 358,580 189,021 169,559 358,580 United States Trustee 11,500 7,750 3,750 11,500 Other 44,386 3,149 41,237 44,386 ------------- ------------- ------------- ------------- TOTAL $ 2,127,422 $ 1,051,792 $ 1,075,630 $ 2,127,422 ============= ============= ============= =============

Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability ----------- ----------- ---------- ---------- ---------- ---------- FEDERAL: Income: Accrued provision $ 544 $ 0 $ 0 N/A N/A $ 544 ----------- ----------- ---------- ---------- ---------- ---------- TOTAL $ 544 $ 0 $ 0 N/A N/A $ 544 =========== =========== ========== ========== ========== ==========

AS OF MAY 17, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 19,518 + Amounts billed during the period 1,237 - Amounts collected during the period 0 ------------------ Total Accounts Receivable at the end of the reporting period $ 20,755 ==================

AS OF MAY 17,2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 1,237 31 - 60 days old 1,236 61 - 90 days old 1,237 91+ days old 17,045 ------------------ Total Accounts Receivable 20,755 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 20,755 ==================

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- MAY 18, 2003 SEPTEMBER 4, 2002 TO TO JUNE 14, 2003 JUNE 14,2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 250 12,131 Interest expense: amortization of original issue discount (273) (600) Reorganization items (2,983) (6,647) Gain from early extinguishment of debt. 36,613 36,613 ----------------- ----------------- NET INCOME (LOSS) BEFORE AND TAXES 33,607 41,497 ----------------- ----------------- NET INCOME (LOSS) BEFORE TAXES 33,607 41,497 Income Tax expense 0 174 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES 33,607 41,323 Equity in earnings (loss) of subsidiaries (263) (151,989) ----------------- ----------------- NET INCOME (LOSS) $ 33,344 $ (110,666) ================= =================

AS OF ------------------------------ JUNE 14, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 14 $ 0 Accounts receivable 250 9,662 Notes receivable, net of Unamortized Premium of $1,040 as of September 4, 2002 0 161,243 Prepaid expenses 26 1,660 -------------- -------------- TOTAL CURRENT ASSETS 290 172,565 Bond issue costs - 1993 issue 0 426 Deferred tax asset - original issue discount 1,579 1,209 Notes receivable 90,000 0 Equity in subsidiaries (55,663) 59,817 -------------- -------------- TOTAL ASSETS $ 36,206 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 0 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses 3,521 0 Deferred income taxes payable 544 0 Intercompany payable 1,201 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 5,266 197,411 Bonds Payable 90,000 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 95,266 0 LIABILITIES SUBJECT TO COMPROMISE 0 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 106,500 91,500 Retained earnings (deficit) (165,560) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 36,206 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 0 $ 176,231 Interest payable 0 9,977 Intercompany payable 0 11,203 -------------- -------------- $ 0 $ 197,411 ============== ==============

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM MAY 18, 2003 FROM SEPTEMBER 4, 2002 TO JUNE 14, 2003 TO JUNE 14, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 348 $ 0 $ 1,413 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 348 0 1,413 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees 348 0 1,391 3,840 U.S. Trustee fees 0 0 8 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS 348 0 1,399 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ 0 $ 0 $ 14 $ 0 ============= ============= ============ =============

FOR THE PERIOD SEPTEMBER 4, 2002 TO JUNE 14, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 1,054,985 $ 82,031 $ 972,954 $ 1,054,985 Ashby & Geddes 25,659 6,183 19,476 25,659 Bowne of Miami 16,485 16,485 0 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 58,523 50,000 8,523 58,523 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 243,131 62,137 180,994 243,131 Jeffries & Company 1,516,801 802,911 713,890 1,516,801 Milbank, Tweed, Hadley & McCloy 274,060 32,616 241,444 274,060 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP 454,034 222,138 231,897 454,034 United States Trustee 11,500 7,750 3,750 11,500 Other 37,787 3,209 34,578 37,787 Deloitte & Touche 25,000 0 25,000 25,000 Wilmington Trust 49,500 49,500 0 49,500 ------------- ------------- ------------- ------------- TOTAL $ 3,831,835 $ 1,399,329 $ 2,432,506 $ 3,831,835 ============= ============= ============= =============

AS OF JUNE 14, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 20,755 + Amounts billed during the period 250 - Amounts collected during the period 20,755 ------------------ Total Accounts Receivable at the end of the reporting period $ 250 ==================

AS OF JUNE 14, 2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 250 31 - 60 days old 0 61 - 90 days old 0 91+ days old 0 ------------------ Total Accounts Receivable 250 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 250 ==================

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- JUNE 15, 2003 SEPTEMBER 4, 2002 TO TO JULY 12, 2003 JULY 12,2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 699 12,830 Interest expense: amortization of original issue discount (694) (1,294) Reorganization items 0 (6,647) Gain from early extinguishment of debt 0 36,613 ----------------- ----------------- NET INCOME (LOSS) BEFORE AND TAXES 5 41,502 ----------------- ----------------- Income Tax expense 0 174 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES 5 41,328 Equity in earnings (loss) of subsidiaries (1,163) (153,152) ----------------- ----------------- NET INCOME (LOSS) $ (1,158) $ (111,824) ================= =================

AS OF ------------------------------ JULY 12, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 14 $ 0 Accounts receivable 949 9,662 Notes receivable, net of Unamortized Premium of $1,040 as of September 4, 2002 0 161,243 Prepaid expenses 26 1,660 -------------- -------------- TOTAL CURRENT ASSETS 989 172,565 Bond issue costs - 1993 issue 0 426 Deferred tax asset - original issue discount 1,579 1,209 Notes receivable 90,000 0 Equity in subsidiaries (56,825) 59,817 -------------- -------------- TOTAL ASSETS $ 35,743 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 0 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses 3,521 0 Deferred income taxes payable 544 0 Intercompany payable 1,895 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 5,960 197,411 Bonds Payable 90,000 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 95,960 0 LIABILITIES SUBJECT TO COMPROMISE 0 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 106,500 91,500 Retained earnings (deficit) (166,717) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 35,743 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 0 $ 176,231 Interest payable 0 9,977 Intercompany payable 0 11,203 -------------- -------------- $ 0 $ 197,411 ============== ==============

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM JUNE 15, 2003 FROM SEPTEMBER 4, 2002 TO JULY 12, 2003 TO JULY 12, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 0 $ 0 $ 1,413 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 0 0 1,413 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees 0 0 1,391 3,840 U.S. Trustee fees 0 0 8 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS 0 0 1,399 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ 0 $ 0 $ 14 $ 0 ============= ============= ============ =============

FOR THE PERIOD SEPTEMBER 4, 2002 TO JULY 12, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 1,054,985 $ 82,031 $ 972,954 $ 1,054,985 Ashby & Geddes 25,659 6,183 19,476 25,659 Bowne of Miami 16,485 16,485 0 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 58,523 50,000 8,523 58,523 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 243,131 62,137 180,994 243,131 Jeffries & Company 1,516,801 802,911 713,890 1,516,801 Milbank, Tweed, Hadley & McCloy 274,060 32,616 241,444 274,060 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP 454,034 222,138 231,897 454,034 United States Trustee 11,500 7,750 3,750 11,500 Other 37,787 3,209 34,578 37,787 Deloitte & Touche 25,000 0 25,000 25,000 Wilmington Trust 49,500 49,500 0 49,500 ------------- ------------- ------------- ------------- TOTAL $ 3,831,835 $ 1,399,329 $ 2,432,506 $ 3,831,835 ============= ============= ============= =============

AS OF JULY 12, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 250 + Amounts billed during the period 699 - Amounts collected during the period 0 ------------------ Total Accounts Receivable at the end of the reporting period $ 949 ==================

AS OF JULY 12, 2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 699 31 - 60 days old 250 61 - 90 days old 0 91+ days old 0 ------------------ Total Accounts Receivable 949 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 949 ==================

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- JULY 13, 2003 SEPTEMBER 4, 2002 TO TO AUGUST 9, 2003 AUGUST 9, 2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 699 13,529 Interest expense: amortization of original issue discount (694) (1,988) Reorganization items 0 (6,647) Gain from early extinguishment of debt (105) 36,508 ----------------- ----------------- NET INCOME (LOSS) BEFORE AND TAXES (100) 41,402 ----------------- ----------------- Income Tax expense 1,516 1,690 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES (1,616) 39,712 Equity in earnings (loss) of subsidiaries (351) (153,501) ----------------- ----------------- NET INCOME (LOSS) $ (1,967) $ (113,789) ================= =================

AS OF ------------------------------ AUGUST 9, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 10 $ 0 Accounts receivable 1,648 9,662 Notes receivable, net of Unamortized Premium of $1,040 as September 4, 2002, respectively 0 161,243 Prepaid expenses 26 1,660 -------------- -------------- TOTAL CURRENT ASSETS 1,684 172,565 Bond issue costs - 1993 issue 0 426 Deferred tax asset - original issue discount 0 1,209 Notes receivable 90,000 0 Equity in subsidiaries (57,174) 59,817 -------------- -------------- TOTAL ASSETS $ 34,510 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 0 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses 3,517 0 Deferred income taxes payable 482 0 Intercompany payable 2,694 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 6,693 197,411 Bonds Payable 90,000 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 96,693 0 LIABILITIES SUBJECT TO COMPROMISE 0 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 106,500 91,500 Retained earnings (deficit) (168,683) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 34,510 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 0 $ 176,231 Interest payable 0 9,977 Intercompany payable 0 11,203 -------------- -------------- $ 0 $ 197,411 ============== ==============

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM JULY 13, 2003 FROM SEPTEMBER 4, 2002 TO AUGUST 9, 2003 TO AUGUST 9, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 0 $ 0 $ 1,413 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 0 0 1,413 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees 0 0 1,391 3,840 U.S. Trustee fees 4 0 12 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS 4 0 1,403 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ 4 $ 0 $ 10 $ 0 ============= ============= ============ =============

FOR THE PERIOD SEPTEMBER 4, 2002 TO AUGUST 9, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 1,054,985 $ 82,031 $ 972,954 $ 1,054,985 Ashby & Geddes 25,659 6,183 19,476 25,659 Bowne of Miami 16,485 16,485 0 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 58,523 50,000 8,523 58,523 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 243,131 62,137 180,994 243,131 Jeffries & Company 1,516,801 802,911 713,890 1,516,801 Milbank, Tweed, Hadley & McCloy 274,060 32,616 241,444 274,060 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP 454,034 222,138 231,897 454,034 United States Trustee 11,500 11,500 0 11,500 Other 37,787 3,209 34,578 37,787 Deloitte & Touche 25,000 0 25,000 25,000 Wilmington Trust 49,500 49,500 0 49,500 ------------- ------------- ------------- ------------- TOTAL $ 3,831,835 $ 1,403,079 $ 2,428,756 $ 3,831,835 ============= ============= ============= =============

Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability ----------- ----------- ---------- ---------- ---------- ---------- FEDERAL: Income: Accrued provision $ 544 $ (62) $ 0 N/A N/A $ 482 ----------- ----------- ---------- ---------- ---------- ---------- TOTAL $ 544 $ (62) $ 0 N/A N/A $ 482 =========== =========== ========== ========== ========== ==========

AS OF AUGUST 9, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 949 + Amounts billed during the period 699 - Amounts collected during the period 0 ------------------ Total Accounts Receivable at the end of the reporting period $ 1,648 ==================

AS OF AUGUST 9, 2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 699 31 - 60 days old 699 61 - 90 days old 250 91+ days old 0 ------------------ Total Accounts Receivable 1,648 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 1,648 ==================

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- AUGUST 10, 2003 SEPTEMBER 4, 2002 TO TO SEPTEMBER 6, 2003 SEPTEMBER 6, 2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 699 14,228 Interest expense: amortization of original issue discount (694) (2,682) Reorganization items 0 (6,647) Gain from early extinguishment of debt 0 36,508 ----------------- ----------------- Net interest income 5 41,407 ----------------- ----------------- NET INCOME (LOSS) BEFORE TAXES 5 41,407 Income Tax expense 0 1,690 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES 5 39,717 Equity in earnings (loss) of subsidiaries (1,449) (154,950) ----------------- ----------------- NET INCOME (LOSS) $ (1,444) $ (115,233) ================= =================

AS OF ------------------------------ SEPTEMBER 6, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 11 $ 0 Accounts receivable 2,346 9,662 Notes receivable, net of Unamortized Premium of $1,040 as of September 4, 2002 0 161,243 Prepaid expenses 0 1,660 -------------- -------------- TOTAL CURRENT ASSETS 2,357 172,565 Bond issue costs - 1993 issue 0 426 Deferred tax asset - original issue discount 0 1,209 Notes receivable 90,000 0 Equity in subsidiaries (58,624) 59,817 -------------- -------------- TOTAL ASSETS $ 33,733 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 2,330 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses 1,731 0 Deferred income taxes payable 482 0 Intercompany payable 2,819 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 7,362 197,411 Bonds Payable 90,000 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 97,362 0 LIABILITIES SUBJECT TO COMPROMISE 0 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 106,500 91,500 Retained earnings (deficit) (170,129) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 33,733 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 0 $ 176,231 Interest payable 0 9,977 Intercompany payable 0 11,203 ------------- -------------- $ 0 $ 197,411 ============= ==============

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM AUGUST 10, 2003 FROM SEPTEMBER 4, 2002 TO SEPTEMBER 6, 2003 TO SEPTEMBER 6, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 731 $ 0 $ 2,144 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 731 0 2,133 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees 731 0 2,123 3,840 U.S. Trustee fees 0 0 12 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS 731 0 2,134 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ 0 $ 0 $ 11 $ 0 ============= ============= ============ =============

FOR THE PERIOD SEPTEMBER 4, 2002 TO SEPTEMBER 6, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 1,054,985 $ 82,031 $ 972,954 $ 1,054,985 Ashby & Geddes 25,659 6,183 19,476 25,659 Bowne of Miami 16,485 16,485 0 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 58,523 50,000 8,523 58,523 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 243,131 243,131 0 243,131 Jeffries & Company 1,516,801 1,120,801 396,000 1,516,801 Milbank, Tweed, Hadley & McCloy 274,060 32,616 241,444 274,060 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP 454,034 454,034 0 454,034 United States Trustee 15,250 11,500 3,750 11,500 Other 34,037 3,209 30,828 34,037 Deloitte & Touche 25,000 0 25,000 25,000 Wilmington Trust 49,500 49,500 0 49,500 ------------- ------------- ------------- ------------- TOTAL $ 3,831,835 $ 2,133,860 $ 1,697,975 $ 3,831,835 ============= ============= ============= =============

Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability ----------- ----------- ---------- ---------- ---------- ---------- FEDERAL: Income: Accrued provision $ 482 $ 0 $ 0 N/A N/A $ 482 ----------- ----------- ---------- ---------- ---------- ---------- TOTAL $ 482 $ 0 $ 0 N/A N/A $ 482 =========== =========== ========== ========== ========== ==========

AS OF SEPTEMBER 6, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 1,647 + Amounts billed during the period 699 - Amounts collected during the period 0 ------------------ Total Accounts Receivable at the end of the reporting period $ 2,346 ==================

AS OF SEPTEMBER 6, 2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 699 31 - 60 days old 699 61 - 90 days old 699 91+ days old 249 ------------------ Total Accounts Receivable 2,346 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 2,346 ==================

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- SEPTEMBER 7, 2003 SEPTEMBER 4, 2002 TO TO OCTOBER 4, 2003 OCTOBER 4, 2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 699 14,927 Interest expense: amortization of original issue discount (694) (3,376) Reorganization items 0 (6,647) Gain from early extinguishment of debt 0 36,508 ----------------- ----------------- Net interest income 5 41,412 ----------------- ----------------- NET INCOME (LOSS) BEFORE TAXES 5 41,412 Income Tax expense 0 1,690 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES 5 39,722 Equity in earnings (loss) of subsidiaries (1,229) (156,179) ----------------- ----------------- NET INCOME (LOSS) $ (1,224) $ (116,457) ================= =================

AS OF ------------------------------ OCTOBER 4, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 11 $ 0 Accounts receivable 3,046 9,662 Notes receivable, net of Unamortized Premium of $1,040 as of September 4, 2002 0 161,243 Prepaid expenses 0 1,660 -------------- -------------- TOTAL CURRENT ASSETS 3,057 172,565 Bond issue costs - 1993 issue 0 426 Deferred tax asset - original issue discount 0 1,209 Notes receivable 90,000 0 Equity in subsidiaries (59,853) 59,817 -------------- -------------- TOTAL ASSETS $ 33,204 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 3,024 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses 1,731 0 Deferred income taxes payable 482 0 Intercompany payable 2,819 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 8,056 197,411 Notes payable 90,000 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 98,056 0 LIABILITIES SUBJECT TO COMPROMISE 0 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 106,500 91,500 Retained earnings (deficit) (171,352) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 33,204 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 0 $ 176,231 Interest payable 0 9,977 Intercompany payable 0 11,203 ------------- -------------- $ 0 $ 197,411 ============= ==============

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM SEPTEMBER 7, 2003 FROM SEPTEMBER 4, 2002 TO OCTOBER 4, 2003 TO OCTOBER 4, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 0 $ 0 $ 2,144 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 0 0 2,144 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees 0 0 2,121 3,840 U.S. Trustee fees 0 0 12 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS 0 0 2,133 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ 0 $ 0 $ 11 $ 0 ============= ============= ============ =============

FOR THE PERIOD SEPTEMBER 4, 2002 TO OCTOBER 4, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 1,054,985 $ 82,031 $ 972,954 $ 1,054,985 Ashby & Geddes 25,659 6,183 19,476 25,659 Bowne of Miami 16,485 16,485 0 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 58,523 50,000 8,523 58,523 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 243,131 243,131 0 243,131 Jeffries & Company 1,516,801 1,120,801 396,000 1,516,801 Milbank, Tweed, Hadley & McCloy 274,060 32,616 241,444 274,060 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP 454,034 454,034 0 454,034 United States Trustee 15,250 11,500 3,750 11,500 Other 34,037 3,209 30,828 34,037 Deloitte & Touche 25,000 0 25,000 25,000 Wilmington Trust 49,500 49,500 0 49,500 ------------- ------------- ------------- ------------- TOTAL $ 3,831,835 $ 2,133,860 $ 1,697,975 $ 3,831,835 ============= ============= ============= =============

Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability ----------- ----------- ---------- ---------- ---------- ---------- FEDERAL: Income: Accrued provision $ 482 $ 0 $ 0 N/A N/A $ 482 ----------- ----------- ---------- ---------- ---------- ---------- TOTAL $ 482 $ 0 $ 0 N/A N/A $ 482 =========== =========== ========== ========== ========== ==========

AS OF OCTOBER 4, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 2,346 + Amounts billed during the period 700 - Amounts collected during the period 0 ------------------ Total Accounts Receivable at the end of the reporting period $ 3,046 ==================

AS OF OCTOBER 4, 2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 700 31 - 60 days old 699 61 - 90 days old 699 91+ days old 948 ------------------ Total Accounts Receivable 3,046 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 3,046 ==================

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- OCTOBER 5, 2003 SEPTEMBER 4, 2002 TO TO NOVEMBER 1, 2003 NOVEMBER 1, 2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 699 15,626 Interest expense: amortization of original issue discount (694) (4,070) Reorganization items 0 (6,647) Gain from early extinguishment of debt 0 36,508 ----------------- ----------------- Net interest income 5 41,417 ----------------- ----------------- NET INCOME (LOSS) BEFORE TAXES 5 41,417 Income Tax (benefit) expense (887) 803 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES 892 40,614 Equity in earnings (loss) of subsidiaries (2,058) (158,237) ----------------- ----------------- NET INCOME (LOSS) $ (1,166) $ (117,623) ================= =================

AS OF ------------------------------ NOVEMBER 1, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 11 $ 0 Accounts receivable 3,745 9,662 Notes receivable, net of Unamortized Premium of $1,040 as of September 4, 2002 0 161,243 Prepaid expenses 0 1,660 Deferred tax asset 405 -------------- -------------- TOTAL CURRENT ASSETS 4,161 172,565 Bond issue costs - 1993 issue 0 426 Deferred tax asset - original issue discount 0 1,209 Notes receivable 90,000 0 Equity in subsidiaries (61,912) 59,817 -------------- -------------- TOTAL ASSETS $ 32,249 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 3,718 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses 1,731 0 Intercompany payable 2,819 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 8,268 197,411 Notes payable 90,000 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 98,268 0 LIABILITIES SUBJECT TO COMPROMISE 0 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 106,500 91,500 Retained earnings (deficit) (172,519) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 32,249 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 0 $ 176,231 Interest payable 0 9,977 Intercompany payable 0 11,203 ------------- -------------- $ 0 $ 197,411 ============= ==============

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM OCTOBER 5, 2003 FROM SEPTEMBER 4, 2002 TO NOVEMBER 1, 2003 TO NOVEMBER 1, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 0 $ 0 $ 2,144 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 0 0 2,144 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees 0 0 2,121 3,840 U.S. Trustee fees 0 0 12 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS 0 0 2,133 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ 0 $ 0 $ 11 $ 0 ============= ============= ============ =============

FOR THE PERIOD SEPTEMBER 4, 2002 TO NOVEMBER 1, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 1,054,985 $ 82,031 $ 972,954 $ 1,054,985 Ashby & Geddes 25,659 6,183 19,476 25,659 Bowne of Miami 16,485 16,485 0 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 58,523 50,000 8,523 58,523 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 243,131 243,131 0 243,131 Jeffries & Company 1,516,801 1,120,801 396,000 1,516,801 Milbank, Tweed, Hadley & McCloy 274,060 32,616 241,444 274,060 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP 454,034 454,034 0 454,034 United States Trustee 15,250 11,500 3,750 11,500 Other 34,037 3,209 30,828 34,037 Deloitte & Touche 25,000 0 25,000 25,000 Wilmington Trust 49,500 49,500 0 49,500 ------------- ------------- ------------- ------------- TOTAL $ 3,831,835 $ 2,133,860 $ 1,697,975 $ 3,831,835 ============= ============= ============= =============

Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability ----------- ----------- ---------- ---------- ---------- ---------- FEDERAL: Income: Accrued provision (benefit) $ 482 $ (887) $ 0 N/A N/A $ (405) ----------- ----------- ---------- ---------- ---------- ---------- TOTAL $ 482 $ (887) $ 0 N/A N/A $ (405) =========== =========== ========== ========== ========== ==========

AS OF NOVEMBER 1, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 3,046 + Amounts billed during the period 699 - Amounts collected during the period 0 ------------------ Total Accounts Receivable at the end of the reporting period $ 3,745 ==================

AS OF NOVEMBER 1, 2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 699 31 - 60 days old 700 61 - 90 days old 699 91+ days old 1,647 ------------------ Total Accounts Receivable 3,745 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 3,745 ==================

CUMULATIVE FILING PERIOD TO DATE ----------------- ----------------- NOVEMBER 2, 2003 SEPTEMBER 4, 2002 TO TO NOVEMBER 29, 2003 NOVEMBER 29, 2003 ----------------- ----------------- SALES $ 0 $ 0 Cost of Sales 0 0 ----------------- ----------------- GROSS MARGIN 0 0 Selling, general and administrative expenses 0 0 ----------------- ----------------- OPERATING PROFIT 0 0 Interest income (expense): Interest income 699 16,325 Interest expense: amortization of original issue discount (694) (4,764) Reorganization items 0 (6,647) Gain from early extinguishment of debt 0 36,508 ----------------- ----------------- Net interest income 5 41,422 ----------------- ----------------- NET INCOME (LOSS) BEFORE TAXES 5 41,422 Income Tax (benefit) expense 0 803 ----------------- ----------------- NET INCOME (LOSS) BEFORE EARNINGS OF SUBSIDIARIES 5 40,619 Equity in earnings (loss) of subsidiaries 43 (158,196) ----------------- ----------------- NET INCOME (LOSS) $ 48 $ (117,577) ================= =================

AS OF ------------------------------ NOVEMBER 29, SEPTEMBER 4, 2003 2002 -------------- -------------- ASSETS CURRENT ASSETS Cash & cash equivalents $ 11 $ 0 Accounts receivable 4,444 9,662 Notes receivable, net of Unamortized Premium of $1,040 as of September 4, 2002 0 161,243 Prepaid expenses 0 1,660 Deferred tax asset 405 -------------- -------------- TOTAL CURRENT ASSETS 4,860 172,565 Bond issue costs - 1993 issue 0 426 Deferred tax asset - original issue discount 0 1,209 Notes receivable 90,000 0 Equity in subsidiaries (61,869) 59,817 -------------- -------------- TOTAL ASSETS $ 32,991 $ 234,017 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Interest Payable $ 4,412 $ 9,977 Bonds Payable, net of Unamortized Discount of $1,052 as of September 4, 2002 0 176,231 Accrued expenses 758 0 Intercompany payable 3,792 11,203 -------------- -------------- TOTAL CURRENT LIABILITIES 8,962 197,411 Notes payable 90,000 0 -------------- -------------- TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE 98,962 0 LIABILITIES SUBJECT TO COMPROMISE 0 197,411 Common stock ($0.10 par value) 0 0 Additional paid in capital 106,500 91,500 Retained earnings (deficit) (172,471) (54,894) -------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 32,991 $ 234,017 ============== ============== Memo: LIABILITIES SUBJECT TO COMPROMISE Notes payable $ 0 $ 176,231 Interest payable 0 9,977 Intercompany payable 0 11,203 ------------- -------------- $ 0 $ 197,411 ============= ==============

PERIOD CUMULATIVE FILING TO DATE ------------------------------ ----------------------------- FROM NOVEMBER 2, 2003 FROM SEPTEMBER 4, 2002 TO NOVEMBER 29, 2003 TO NOVEMBER 29, 2003 ------------------------------ ----------------------------- ACTUAL PROJECTED ACTUAL PROJECTED ------------- ------------- ------------ ------------- Cash Receipts: Loans and advances (1) $ 973 $ 0 $ 3,117 $ 3,858 ------------- ------------- ------------ ------------- CASH INFLOWS 973 0 3,117 3,858 ------------- ------------- ------------ ------------- Cash Disbursements: Professional fees 973 0 3,094 3,840 U.S. Trustee fees 0 0 12 18 ------------- ------------- ------------ ------------- CASH OUTFLOWS 973 0 3,106 3,858 ------------- ------------- ------------ ------------- NET CASH INFLOWS (OUTFLOWS) $ 0 $ 0 $ 11 $ 0 ============= ============= ============ =============

FOR THE PERIOD SEPTEMBER 4, 2002 TO NOVEMBER 29, 2003 ------------------------------------------------------------- BILLED NAME AMOUNT PAID UNPAID TOTAL ---- ------------- ------------- ------------- ------------- Alvarez & Marsal $ 1,054,985 $ 1,054,985 $ 0 $ 1,054,985 Ashby & Geddes 25,659 6,183 19,476 25,659 Bowne of Miami 16,485 16,485 0 16,485 D.F. King & Co., Inc. 7,527 7,527 0 7,527 Duane Morris LLP 58,523 50,000 8,523 58,523 Gavin Anderson 34,459 34,459 0 34,459 Kaye Schoeler LLP 243,131 243,131 0 243,131 Jeffries & Company 1,516,801 1,120,801 396,000 1,516,801 Milbank, Tweed, Hadley & McCloy 274,060 32,616 241,444 274,060 R. R. Donnelley Receivables 22,384 22,384 0 22,384 Stroock & Stroock & Lavan LLP 454,034 454,034 0 454,034 United States Trustee 15,250 11,500 3,750 11,500 Other 34,037 3,209 30,828 34,037 Deloitte & Touche 25,000 0 25,000 25,000 Wilmington Trust 49,500 49,500 0 49,500 ------------- ------------- ------------- ------------- TOTAL $ 3,831,835 $ 3,106,814 $ 725,021 $ 3,831,835 ============= ============= ============= =============

Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability ----------- ----------- ---------- ---------- ---------- ---------- FEDERAL: Income: Accrued provision (benefit) $ (405) $ 0 $ 0 N/A N/A $ (405) ----------- ----------- ---------- ---------- ---------- ---------- TOTAL $ (405) $ 0 $ 0 N/A N/A $ (405) =========== =========== ========== ========== ========== ==========

AS OF NOVEMBER 29, 2003 ------------------ ACCOUNTS RECEIVABLE RECONCILIATION: Total Accounts Receivable at the beginning of the reporting period $ 3,745 + Amounts billed during the period 699 - Amounts collected during the period 0 ------------------ Total Accounts Receivable at the end of the reporting period $ 4,444 ==================

AS OF NOVEMBER 29, 2003 ------------------ ACCOUNTS RECEIVABLE AGING: 0 - 30 days old $ 699 31 - 60 days old 699 61 - 90 days old 700 91+ days old 2,346 ------------------ Total Accounts Receivable 4,444 Amounts considered uncollectible (Bad Debt) 0 ------------------ Accounts Receivable (Net) $ 4,444 ==================

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