United Solar Ovonic LLC
Exhibit 99.4
UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF MICHIGAN
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: May 31, 2012
| In re: United Solar Ovonic LLC | Case Number: 12-43167 | |
| Chapter 11 | ||
| Judge: Hon. Thomas J. Tucker | ||
| Debtor. |
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United Solar Ovonic LLC/
As debtor in possession, I affirm:
| 1. | That I have reviewed the financial statements attached hereto, consisting of: |
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Operating Statement | (Form 2) | ||
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Balance Sheet | (Form 3) | ||
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Summary of Operations | (Form 4) | ||
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Monthly Cash Statement | (Form 5) | ||
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Statement of Compensation | (Form 6) | ||
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Schedule of In-Force Insurance | (Form 7) |
and that they have been prepared in accordance with normal and customary accounting practices, and fairly and accurately reflect the debtor’s financial activity for the period stated;
| 2. | That the insurance, including workers’ compensation and unemployment insurance, as described in Section 5 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases, is in effect; and |
| (If not, attach a written explanation) | YES x | NO ¨ |
| 3. | That all post-petition taxes as described in Section 9 of the Operating Instructions and Reporting Requirements For Chapter 11 Cases are current. |
| (If not, attach a written explanation) | YES x | NO ¨ |
| 4. | No professional fees (attorney, accountant, etc.) have been paid without specific court authorization. |
| (If not, attach a written explanation) | YES x | NO ¨ |
| 5. | All United States Trustee Quarterly fees have been paid and are current. |
| YES x | NO ¨ |
| 6. | Have you filed your pre-petition tax returns? |
| (If not, attach a written explanation) | YES x | NO ¨ |
I hereby certify, under penalty of perjury, that the information provided above and in the attached documents is true and correct to the best of my information and belief.
| Dated: June 20, 2012 | United Solar Ovonic LLC | |||||
| Debtor in Possession | ||||||
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| Title: | William C. Andrews | |||||
| Chief Financial Officer Phone: 248-370-5315 | ||||||
Form 1
OPERATING STATEMENT (P&L)(1)
Period Ending: May 31, 2012
Case No: 12-43167
| Current Month | Total Since Filing | |||||||
| Total Revenue |
$ | 2,423,082 | $ | 11,000,867 | ||||
| Cost of Sales(2) |
5,899,359 | 20,556,380 | ||||||
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| GROSS PROFIT |
(3,476,277 | ) | (9,555,513 | ) | ||||
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| EXPENSES: |
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| Officer Compensation |
25,138 | 91,805 | ||||||
| Salary/Wages Expenses |
459,546 | 2,389,156 | ||||||
| Employee Benefits & Pensions |
216,797 | 884,721 | ||||||
| Payroll Taxes |
125,210 | 359,789 | ||||||
| Other Taxes |
22,105 | 50,532 | ||||||
| Rent and Lease Expense |
124,275 | 626,929 | ||||||
| Interest Expense(3) |
2,171,078 | 7,648,915 | ||||||
| Property Insurance |
967 | 3,651 | ||||||
| Utilities |
56,676 | 128,573 | ||||||
| Depreciation |
22,230 | 79,780 | ||||||
| Travel and Entertainment |
15,432 | 78,480 | ||||||
| Repairs and Maintenance |
17,724 | 34,019 | ||||||
| Other – Miscellaneous |
209,664 | 1,519,032 | ||||||
| Other – (Gain) Loss on Asset Disposal(5) |
— | (7,049,242 | ) | |||||
| Other Specify – European Costs |
250,687 | 877,562 | ||||||
| Other Specify – Restructuring(6) |
— | 2,276,805 | ||||||
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| TOTAL EXPENSES: |
3,717,529 | 10,000,508 | ||||||
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| OPERATING PROFIT |
(7,193,806 | ) | (19,556,022 | ) | ||||
| Add: Non-Operating Income |
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| Total Interest Income |
— | — | ||||||
| Other (Income) / Expense |
(130,149 | ) | 231,648 | |||||
| Less: Non-Operating Expenses |
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| Professional Fees(4) |
839,770 | 3,141,770 | ||||||
| Other – Income Taxes |
(8,303 | ) | (224,509 | ) | ||||
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| NET INCOME/(LOSS) |
$ | (7,895,124 | ) | $ | (22,704,931 | ) | ||
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| (1) | The operating statement and balance sheet were prepared using accrual accounting. |
| (2) | Product sold during this period had an inventory value of $2,837,522. The balance of cost of sales is unabsorbed variance due to the production shutdown. |
| (3) | The effective annual interest rate for May 31, 2012 was 10.2%. |
| (4) | Professional fees include estimates and actuals. |
| (5) | Primarily included gain on rejection of lease. |
| (6) | Severance costs for terminated employees. |
Form 2
BALANCE SHEET
Period Ending: May 31, 2012
Case No: 12-43167
| Current Month | Prior Month | At Filing | ||||||||||
| ASSETS: |
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| Cash and Cash Equivalents |
$ | 10,967,415 | $ | 11,721,600 | $ | 4,378,158 | ||||||
| Investments |
— | — | — | |||||||||
| Inventories, Net |
30,679,473 | 33,539,728 | 41,727,690 | |||||||||
| Accounts Receivable – Intercompany – USO CDN |
1,540,794 | 1,648,063 | 1,788,754 | |||||||||
| Accounts Receivable Intercompany SIT |
23,512,121 | 23,507,313 | 23,497,597 | |||||||||
| Accounts Receivable Trade – Net |
4,761,473 | 6,388,046 | 10,597,737 | |||||||||
| Land and Buildings |
17,517,111 | 17,517,111 | 29,010,567 | |||||||||
| Furniture, Fixtures & Equipment |
36,436,143 | 36,351,487 | 39,529,693 | |||||||||
| Accumulated Depreciation |
(7,625,765 | ) | (7,285,109 | ) | (12,471,130 | ) | ||||||
| Restricted Cash |
3,580,101 | 4,374,728 | 5,950,000 | |||||||||
| Prepaid |
629,263 | 794,253 | 664,094 | |||||||||
| Investment in Subsidiaries |
3,079,555 | 3,242,929 | 3,064,408 | |||||||||
| Other Assets |
2,517,021 | 2,517,019 | 2,053,060 | |||||||||
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| TOTAL ASSETS |
$ | 127,594,703 | $ | 134,317,168 | $ | 149,790,628 | ||||||
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| LIABILITIES: |
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| Post-petition Liabilities: |
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| Accounts Payable Trade – Net |
$ | 658,382 | $ | 273,925 | $ | — | ||||||
| Accounts Payable Intercompany ECD |
50,770 | 85,302 | — | |||||||||
| Accounts Payable Intercompany USO EU |
273,270 | 186,552 | — | |||||||||
| Accounts Payable Intercompany USO Mexico |
1,393,598 | 1,112,646 | — | |||||||||
| Warranty |
118,089 | 118,089 | — | |||||||||
| Other Current Liabilities |
597,026 | 2,069,228 | — | |||||||||
| Accrued Salaries and Wages |
84,237 | 354,188 | — | |||||||||
| Accrued Taxes |
426,335 | 285,739 | — | |||||||||
| Accrued Other |
2,288,932 | 2,325,972 | — | |||||||||
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| TOTAL Post-petition Liabilities |
5,890,638 | 6,811,642 | — | |||||||||
| Secured Liabilities: |
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| Secured Loan – ECD |
5,000,000 | 5,000,000 | 5,000,000 | |||||||||
| Pre-petition Liabilities: |
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| Accounts Payable Trade – Net |
7,273,287 | 7,273,287 | 7,273,287 | |||||||||
| Accounts Payable Intercompany ECD |
799,767,567 | 797,596,837 | 792,119,291 | |||||||||
| Accounts Payable Intercompany SIT |
600,241 | 600,241 | 600,241 | |||||||||
| Accounts Payable Intercompany Mexico |
1,704,449 | 1,704,449 | — | |||||||||
| Lease Payable |
4,849,388 | 4,926,455 | 19,627,288 | |||||||||
| Warranty |
10,176,836 | 10,176,836 | 10,176,836 | |||||||||
| Other Current Liabilities |
637,324 | 637,324 | 637,324 | |||||||||
| Accrued Salaries and Wages |
677,100 | 677,100 | 677,100 | |||||||||
| Accrued Taxes |
636,431 | 636,431 | 636,431 | |||||||||
| Accrued Other |
4,331,705 | 4,331,705 | 4,331,705 | |||||||||
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| TOTAL Pre-petition Liabilities |
830,654,328 | 828,560,664 | 836,079,503 | |||||||||
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| TOTAL LIABILITIES |
841,544,966 | 840,372,306 | 841,079,503 | |||||||||
| EQUITY: |
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| Owners Capital |
65,000,000 | 65,000,000 | 65,000,000 | |||||||||
| Additional Paid-In-Capital |
(27,351,380 | ) | (27,351,380 | ) | (27,351,380 | ) | ||||||
| Retained Earnings-Pre Petition |
(728,893,951 | ) | (728,893,951 | ) | (728,937,495 | ) | ||||||
| Retained Earnings-Post Petition |
(22,704,931 | ) | (14,809,807 | ) | — | |||||||
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| TOTAL EQUITY |
(713,950,262 | ) | (706,055,139 | ) | (691,288,875 | ) | ||||||
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| TOTAL LIABILITIES AND EQUITY |
$ | 127,594,703 | $ | 134,317,168 | $ | 149,790,628 | ||||||
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Form 3
SUMMARY OF OPERATIONS
Period Ended: May 31, 2012
Case No: 12-43167
Schedule of Post-petition Taxes Payable
| Beginning Balance |
Accrued/ Withheld |
Payments/ Deposits |
Ending Balance | |||||||||||||
| Income Taxes Withheld |
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| Federal |
— | $ | 461,947.44 | $ | 461,947.44 | — | ||||||||||
| State |
— | 128,731.19 | 128,731.19 | — | ||||||||||||
| Local |
— | — | — | — | ||||||||||||
| FICA Withheld |
— | 175,431.82 | 175,431.82 | — | ||||||||||||
| Employers FICA |
— | 234,625.50 | 234,625.50 | — | ||||||||||||
| Unemployment Tax |
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| Federal |
— | 3,941.61 | 3,941.61 | — | ||||||||||||
| State |
— | 86,898.50 | 86,898.50 | — | ||||||||||||
| Sales, Use & Excise Taxes |
$ | 93,569.00 | 42,652.00 | — | $ | 136,221.00 | ||||||||||
| Property Taxes |
192,170.00 | 97,974.00 | — | 290,144.00 | ||||||||||||
| Workers’ Compensation(1) |
— | — | — | — | ||||||||||||
| Other |
— | — | — | — | ||||||||||||
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| TOTALS |
$ | 285,739.00 | $ | 1,232,202.06 | $ | 1,091,576.06 | $ | 426,365.00 | ||||||||
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| (1) | Fully insured. |
AGING OF ACCOUNTS RECEIVABLE
AND POST-PETITION ACCOUNTS PAYABLE
| Age in Days | 0-30 | 31-60 | Over 60 | |||||||||
| Post Petition |
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| Accounts Payable |
$ | 636,141.56 | $ | 21,560.47 | $ | 679.72 | ||||||
| Accounts Receivable |
$ | 4,382,814.71 | $ | — | $ | 378,657.66 | ||||||
For all post-petition accounts payable over 30 days old, please attach a sheet listing each such account, to whom the account is owed, the date the account was opened, and the reason for non-payment of the account.
Describe events or factors occurring during this reporting period materially affecting operations and formulation of a Plan of Reorganization: None
Form 4
MONTHLY CASH STATEMENT
Period Ending: May 31, 2012
| Cash Activity Analysis (Cash Basis Only): | Case No: 12-43167 |
| General Account |
L/C Collateral Account |
Canadian Payroll Account(1) |
Petty Cash |
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| A. |
Beginning Balance |
$ | 12,001,360.76 | $ | 4,374,728.04 | $ | 3,821.37 | $ | 803.29 | |||||||||
| B. |
Receipts |
4,127,749.07 | — | 75,000.00 | 0 .88 | |||||||||||||
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| C. |
Balance Available |
16,129,109.83 | 4,374,728.04 | 78,821.37 | 804.17 | |||||||||||||
| (A+B) |
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| D. |
Less Disbursements |
5,132,364.30 | 794,627.20 | 15,704.89 | — | |||||||||||||
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| (Attach separate schedule) |
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| E. |
ENDING BALANCE |
$ | 10,996,745.53 | $ | 3,580,100.84 | $ | 63,116.48 | $ | 804.17 | |||||||||
| (C-D) |
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| (1) | In Canadian Dollars |
ATTENTION: Please enter the TOTAL DISBURSEMENT from all your accounts, including cash and excluding transfers, onto the line below. This is the number that will determine your quarterly fee payment: $5,942,696.39
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH ACCOUNT)
General Account:
| 1. Depository Name & Location |
JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan | |||||
| 2. Account Number |
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L/C Collateral Account:
| 1. Depository Name & Location |
JP Morgan Chase Bank, N.A. (MI); Detroit, Michigan | |||||
| 2. Account Number |
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Canadian Payroll Account:
| 1. Depository Name & Location |
JP Morgan Chase Bank, N.A. Canada; Toronto, Ontario, Canada | |||||
| 2. Account Number |
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Other monies on hand (specify type and location) i.e., CD’s, bonds, etc.):
None
| Date: June 20, 2012 | ||||
| United Solar Ovonic LLC | ||||
| Debtor in Possession | ||||
Form 5
MONTHLY STATEMENT OF INSIDER COMPENSATION/PAYMENTS
Period Ending: May 31, 2012
Case No: 12-43167
The following information is to be provided for each shareholder, officer, director, manager, insider, or owner that is employed by the debtor in possession. (Attach additional pages if necessary.)
| Name: | Joseph P. Conroy, Executive Vice President, ECD; | Capacity: | x | Shareholder | ||||||
| Senior Vice President, USO Operations |
x | Officer | ||||||||
| ¨ | Director | |||||||||
| x | Insider |
Detailed Description of Duties:
| • | Provides leadership to all operations and manufacturing related activity (Auburn Hills, Greenville 1&2, Tijuana, China JV and Marcegaglia) |
| • | Responsible for building new equipment to support the company’s technology efforts |
| • | Provides leadership to all manufacturing, engineering, quality functions (ensures the production of all manufacturing products) |
| Current Compensation Paid (1): |
Weekly | Or | Monthly | |||||||||
| $ | 18,461.55 | |||||||||||
| Current Benefits Paid: |
Weekly | Or | Monthly | |||||||||
| Health Insurance |
$ | 849.92 | ||||||||||
| Life Insurance |
72.15 | |||||||||||
| Accidental Death & Dismemberment Insurance |
9.62 | |||||||||||
| Long-Term and Short-Term Disability Insurance |
72.50 | |||||||||||
| Employee Assistance Program |
1.69 | |||||||||||
| Vacation Payout |
6,676.92 | |||||||||||
| Personal Car Mileage |
158.73 | |||||||||||
| Entertainment |
— | |||||||||||
| Travel |
— | |||||||||||
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| Total Benefits |
$ | 7,841.53 | ||||||||||
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| Current Other Payments Paid: |
Weekly | Or | Monthly | |||||||||
| Rent Paid |
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| Loans |
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| Other (Describe) |
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| Other (Describe) |
— | |||||||||||
| Other (Describe) |
— | |||||||||||
| Total Other Payments |
— | |||||||||||
| Weekly | Or | Monthly | ||||||||||
| CURRENT TOTAL OF ALL PAYMENTS: |
$ | 26,303.08 | ||||||||||
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| (1) | Mr. Conroy’s last day of employment with the company was 5/11/12. |
| Dated: June 20, 2012 | Joseph P. Conroy |
Form 6
SCHEDULE OF IN-FORCE INSURANCE
Period Ending: May 31, 2012
Case No: 12-43167
| INSURANCE TYPE |
CARRIER |
EXPIRATION DATE | ||
| Workers’ Compensation |
Valley Forge Insurance Company |
02/01/2013 | ||
| Workers’ Compensation |
American Casualty Company of Reading PA |
02/01/2013 | ||
| General Liability |
American Casualty Company of Reading PA |
02/01/2013 | ||
| Property (1st Layer) |
Allianz Global Risk US Insurance Company |
02/01/2013 | ||
| Property (2nd Layer) |
Lexington Insurance Company |
02/01/2013 | ||
| Automobile Policy |
Continental Casualty Company |
02/01/2013 | ||
| Umbrella Policy |
Continental Casualty Company |
02/01/2013 | ||
| Foreign Package |
Continental Casualty Company |
02/01/2013 | ||
| Special Risk Coverage |
Great American Insurance Company |
03/18/2013 | ||
| Directors & Officers |
Allied World National Assurance Company |
09/30/2012 | ||
| Directors & Officers |
Illinois National Insurance Company |
09/30/2012 | ||
| Directors & Officers |
Beazley Insurance Company, Inc. (Lloyd’s of London) |
09/30/2012 | ||
| Employee Practices Liability |
Starr Indemnity & Liability Company |
09/30/2012 | ||
| Fiduciary Liability |
Starr Indemnity & Liability Company |
09/30/2012 | ||
| Fidelity Bond |
Starr Indemnity & Liability Company |
09/30/2012 | ||
| Primary Directors & Officers |
Starr Indemnity & Liability Company |
09/30/2012 | ||
| ERISA Bond |
Travelers Casualty and Surety Company of America |
11/16/2014 | ||
| Pollution Liability Coverage |
Chartis Specialty Insurance |
02/01/2014 | ||
Form 7