EX-99.1 2 rely-20180320ex991863e86.htm EX-99.1 Ex 99-1 MOR (Feb 2018)

 

EXHIBIT 99.1

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

MONTHLY OPERATING REPORT

Submit copy of report to any official committee appointed in the case.

 

 

 

 

 

REQUIRED DOCUMENTS

Form No.

Document
Attached

Explanation
Attached

Schedule of Cash Receipts and Disbursements

MOR-1

 

 

Schedule of Debtor Bank Account Balances

MOR-1b

 

 

Schedule of Professional Fees and Expenses Paid

MOR-1c

 

 

Copies of bank statements

 

Available to the U.S. Trustee upon request.

 

Cash disbursements journals

 

Available to the U.S. Trustee upon request.

 

Statement of Operations

MOR-2

 

 

Balance Sheet

MOR-3

 

 

Summary of unpaid post-petition debts

MOR-4

 

 

Accounts Receivable Aging

MOR-5

 

 

Debtor Questionnaire

MOR-5

 

 

 

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

/s/ Michael J. Hobey

    

3/20/2018

Signature of Authorized Individual*

 

Date

 

 

 

Michael J. Hobey

 

President and Interim CEO

Printed Name of Authorized Individual

 

Title of Authorized Individual

 

*Authorized individual must be an officer, director, or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

 

 

 

IN THE UNITED STATES BANKRUPTCY

COURT

FOR THE DISTRICT OF DELAWARE

 

 

 

 

 

 

 

)

 

In re:

 

)

Chapter 11

 

 

)

 

REAL INDUSTRY, INC., et al.

 

)

Case No. 17-12464 (KJC)

 

 

)

 

Debtors.1

 

)

(Jointly Administered)

 

 

 

 

 

CERTIFICATION REGARDING POST-PETITION BANK

ACCOUNT RECONCILIATIONS AND COMPLIANCE AND

PAYMENT OF POST-PETITION TAXES

 

I, Michael J. Hobey,  President and Interim Chief Executive Officer of Real Industry, Inc. and its affiliated debtors and debtors-in-possession (collectively, the “Debtors”), hereby certifies as follows:

 

1.

Attached to MOR-1 is a listing of the Debtors’ bank accounts, by account number, and the closing balances. These accounts are reconciled monthly in accordance with the Debtors’ ordinary course accounting practices and, together with the Debtors’ bank statements and cash disbursements journals,  are available to the United States Trustee upon request.

 

2.

To the best of my knowledge and belief, the Debtors are current on all post-petition taxes, and no post-petition tax amounts are past due.

 

 

 

 

/s/ Michael J. Hobey

    

3/20/2018

Michael J. Hobey

 

Date

President and Interim Chief Executive Officer

 

 

 

 

 

 

1 The Debtors in the above-captioned chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are Real Industry, Inc. (3818), Real Alloy Intermediate Holding, LLC (7447), Real Alloy Holding, Inc. (2396), Real Alloy Recycling, Inc. (9798), Real Alloy Bens Run, LLC (3083), Real Alloy Specialty Products, Inc. (9911), Real Alloy Specification, Inc. (9849), ETS Schaefer, LLC (9350), and RA Mexico Holding, LLC (4620).  The principal place of business for the Real Alloy Debtors is 3700 Park East Drive, Suite 300, Beachwood, Ohio 44122.

 

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

General Notes

 

This Monthly Operating Report ("MOR") has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in these bankruptcy cases. The financial information contained herein is unaudited, preliminary in nature, and, as discussed below, not prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Such financial statements represent the Debtors’ good faith attempt to comply with the requirements of the United States Trustee using resources available. This information is specifically limited to the reporting period and limited in scope to the requirements of this report. These unaudited financial statements have not been subject to procedures that would typically be applied to financial information presented in accordance with U.S. GAAP, and upon application of such procedures, the Debtors believe that the financial information could be subject to changes which could be material. Certain totals may not sum due to rounding.

 

The results of operations contained herein are not necessarily indicative of the results which may be expected from any other period or for the full year and may not necessarily reflect the results of operations, financial position and schedule of receipts and disbursements in the future. The amounts in MOR 3 currently classified as liabilities subject to compromise may be subject to future change as the Debtors complete their analysis of pre and post-petition liabilities, including the reconciliation of intercompany balances. The Debtors caution readers not to place undue reliance on the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.

 

 

 

 

 

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Alloy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Alloy

 

 

 

 

 

Real Alloy

 

Specialty

 

Real Alloy

 

 

 

 

 

Total Filer

 

Total Filer

 

 

 

 

Real Industry,

 

Intermediate

 

Real Alloy

 

Real Alloy

 

Bens Run,

 

Products,

 

Specification,

 

ETS Schaefer,

 

RA Mexico

 

(Month Ended

 

(Cumulative Since

 

 

 

    

Inc

    

Holding, LLC

    

Holding, Inc.

    

Recycling, Inc.

    

LLC

    

Inc.

    

Inc.

    

LLC

    

Holding, LLC

    

02/28/2018)

    

Filing)

    

Notes

Beginning Cash Balance (Book)

 

$

6,219,676 

 

$

- 

 

$

- 

 

$

8,075,754 

 

$

- 

 

$

- 

 

$

- 

 

$
(79,732)

 

$

- 

 

$

14,215,698 

 

$

4,663,014 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Receipts

 

 

6,487 

 

 

- 

 

 

- 

 

 

18,840,213 

 

 

- 

 

 

1,507,147 

 

 

29,024,550 

 

 

759,444 

 

 

- 

 

 

50,137,841 

 

 

173,298,777 

 

 

Interest Income

 

 

94 

 

 

- 

 

 

- 

 

 

5 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

99 

 

 

525 

 

 

Total Receipts

 

 

6,581 

 

 

- 

 

 

- 

 

 

18,840,217 

 

 

- 

 

 

1,507,147 

 

 

29,024,550 

 

 

759,444 

 

 

- 

 

 

50,137,940 

 

 

173,299,302 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Disbursements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metals

 

 

- 

 

 

- 

 

 

- 

 

 
(14,321,148)

 

 

- 

 

 
(1,331,648)

 

 
(23,078,762)

 

 
(208,727.11)

 

 

- 

 

 
(38,940,285)

 

 
(123,157,724)

 

 

Wages, Payroll, HR & Related

 

 
(135,317)

 

 

- 

 

 

- 

 

 
(4,782,140)

 

 
(5,348)

 

 
(123,461)

 

 
(1,543,085)

 

 
(152,445)

 

 

- 

 

 
(6,741,796)

 

 
(22,524,000)

 

 

Interco w/Canada

 

 

- 

 

 

- 

 

 

- 

 

 
(592,318)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(592,318)

 

 
(1,629,104)

 

 

Freight

 

 

- 

 

 

- 

 

 

- 

 

 
(1,456,002)

 

 

- 

 

 
(56,597)

 

 
(1,084,985)

 

 
(9,987.08)

 

 

- 

 

 
(2,607,570)

 

 
(7,288,869)

 

 

Flux

 

 

- 

 

 

- 

 

 

- 

 

 
(695,847)

 

 

- 

 

 

- 

 

 
(177,918)

 

 

- 

 

 

- 

 

 
(873,765)

 

 
(2,995,278)

 

 

Banking & Financial

 

 
(8,469)

 

 

- 

 

 
(37,360)

 

 
(686,556)

 

 

- 

 

 
(4,687)

 

 
(55,619)

 

 

- 

 

 

- 

 

 
(792,690)

 

 
(3,070,220)

 

 

Packaging & Storage

 

 

- 

 

 

- 

 

 

- 

 

 
(20,530)

 

 

- 

 

 
(12,009)

 

 
(6,259)

 

 

- 

 

 

- 

 

 
(38,798)

 

 
(460,474)

 

 

Industrial Waste

 

 

- 

 

 

- 

 

 

- 

 

 
(502,972)

 

 
(28)

 

 
(4,789)

 

 
(19,496)

 

 

- 

 

 

- 

 

 
(527,285)

 

 
(1,370,852)

 

 

Interco w/Goodyear

 

 

- 

 

 

- 

 

 

- 

 

 
(194,129)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(194,129)

 

 
(756,425)

 

 

Insurance

 

 
(149,657)

 

 

- 

 

 

- 

 

 
(565,156)

 

 

- 

 

 

- 

 

 
(20,990)

 

 

- 

 

 

- 

 

 
(735,803)

 

 
(1,309,674)

 

 

SG&A & Other

 

 
(103,151)

 

 

- 

 

 
(86,491)

 

 
(1,150,893)

 

 
(7,679)

 

 
(66,046)

 

 
(394,777)

 

 
(124,668)

 

 

- 

 

 
(1,933,706)

 

 
(5,204,325)

 

 

Tax Authority

 

 

- 

 

 

- 

 

 
(225)

 

 
(367,264)

 

 
(18,634)

 

 
(9,701)

 

 
(25,752)

 

 
(170.00)

 

 

- 

 

 
(421,747)

 

 
(689,642)

 

 

Equipment, Parts, Supplies & Related

 

 

- 

 

 

- 

 

 

- 

 

 
(1,352,096)

 

 

- 

 

 
(93,090)

 

 
(696,983)

 

 

- 

 

 

- 

 

 
(2,142,169)

 

 
(4,383,293)

 

 

Construction/Fabrication

 

 

- 

 

 

- 

 

 

- 

 

 
(209,997)

 

 

- 

 

 
(1,699)

 

 
(16,058)

 

 

- 

 

 

- 

 

 
(227,755)

 

 
(593,044)

 

 

Chemicals & Lubricants

 

 

- 

 

 

- 

 

 

- 

 

 
(436,750)

 

 

- 

 

 
(2,592)

 

 
(126,151)

 

 

- 

 

 

- 

 

 
(565,493)

 

 
(1,147,215)

 

 

Cleaning & Waste Management

 

 

- 

 

 

- 

 

 

- 

 

 
(177,301)

 

 

- 

 

 
(1,139)

 

 
(23,133)

 

 

- 

 

 

- 

 

 
(201,573)

 

 
(587,282)

 

 

Utilities

 

 

- 

 

 

- 

 

 
(303)

 

 
(951,736)

 

 
(184)

 

 
(40,611)

 

 
(979,366)

 

 
(4,272)

 

 

- 

 

 
(1,976,472)

 

 
(4,458,904)

 

 

Total Operating Disbursements

 

 
(396,593)

 

 

- 

 

 
(124,379)

 

 
(28,462,834)

 

 
(31,874)

 

 
(1,748,070)

 

 
(28,249,334)

 

 
(500,269)

 

 

- 

 

 
(59,513,354)

 

 
(181,626,323)

 

(A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring Related Disbursements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional Fees

 

 
(7,505)

 

 

- 

 

 
(879,160)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(886,664)

 

 
(2,424,293)

 

 

Adequate Assurance Deposit

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(2,102,947)

 

 

Deposit - Derivatives

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(2,500,000)

 

 

US Trustee Fees

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(76,975)

 

 

Total Restructuring Related Disbursements

 

 
(7,505)

 

 

- 

 

 
(879,160)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(886,664)

 

 
(7,104,215)

 

(A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Flow Prior to Financing Activities

 

 
(397,517)

 

 

- 

 

 
(1,003,539)

 

 
(9,622,617)

 

 
(31,874)

 

 
(240,922)

 

 

775,215 

 

 

259,175 

 

 

- 

 

 
(10,262,079)

 

 
(15,431,236)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIP Term Loan Borrowings

 

 

1,500,000 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

1,500,000 

 

 

45,500,000 

 

 

DIP Term Loan Fees and Interest

 

 

- 

 

 

- 

 

 

- 

 

 
(357,778)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(357,778)

 

 
(5,762,222)

 

(A)

DIP ABL Borrowings

 

 

- 

 

 

- 

 

 

- 

 

 

60,500,000 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

60,500,000 

 

 

193,972,151 

 

 

DIP ABL Paydown

 

 

- 

 

 

- 

 

 

- 

 

 
(51,322,051)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(51,322,051)

 

 
(113,754,105)

 

(A)

DIP ABL Fees and Interest

 

 

- 

 

 

- 

 

 

- 

 

 
(306,394)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(306,394)

 

 
(1,791,716)

 

(A)

Pre-Petition ABL Paydown

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(93,297,972)

 

(A)

Pre-Petition Fees and Interest

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 
(130,518)

 

(A)

Total Financing Activities

 

 

1,500,000 

 

 

-

 

 

- 

 

 

8,513,777 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

10,013,777 

 

 

24,735,618 

 

 

Net Cash Flow

 

 

1,102,483 

 

 

- 

 

 
(1,003,539)

 

 
(1,108,840)

 

 
(31,874)

 

 
(240,922)

 

 

775,215 

 

 

259,175 

 

 

- 

 

 
(248,302)

 

 

9,304,382 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Sweep

 

 

- 

 

 

- 

 

 

1,003,539 

 

 
(499,538)

 

 

31,874 

 

 

240,922 

 

 
(775,215)

 

 
(1,582)

 

 

- 

 

 

- 

 

 

-  

 

 

Ending Cash Balance (Book)

 

$

7,322,159 

 

$

- 

 

$

- 

 

$

6,467,376 

 

$

- 

 

$

- 

 

$

- 

 

$

177,861 

 

$

- 

 

$

13,967,396 

 

$

13,967,396 

 

 

Disbursements for Calculating Quarterly US Trustee Fees. [sum of Notes (A)]

 

$

404,098 

 

$

- 

 

$

1,003,539 

 

$

80,449,058 

 

$

31,874 

 

$

1,748,070 

 

$

28,249,334 

 

$

500,269 

 

$

- 

 

$

112,386,242 

 

$

403,467,072 

 

 

 

Notes:

(A) In the November 2017 Monthly Operating Report ("MOR"), the Debtors reported two bank account balances totaling $122,182 as accounts of the Debtors that subsequently were determined to be non-debtor bank accounts. The beginning cash balances have been adjusted to reflect this correction.

MOR-1: Schedule of Receipts and Disbursements

 

 

 

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

SCHEDULE OF DEBTOR BANK ACCOUNT BALANCES*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Alloy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Alloy

 

 

 

 

 

Real Alloy

 

Specialty

 

Real Alloy

 

 

 

RA Mexico

 

 

 

 

 

 

 

 

Intermediate

 

Real Alloy

 

Real Alloy

 

Bens Run,

 

Products,

 

Specification,

 

ETS Schaefer,

 

Holding,

 

 

Bank Account

    

Bank

    

Real Industry, Inc

    

Holding, LLC

    

Holding, Inc.

    

Recycling, Inc.

    

LLC

    

Inc.

    

Inc.

    

LLC

    

LLC

    

Consolidated

xxxxx09712 - ETS Schaefer LLC Receipts

 

Bank of America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,466 

 

 

 

 

$

29,466 

xxxxx31011 - ETS Schaefer LLC Disbursements

 

Bank of America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90,115 

 

 

 

 

$

90,115 

xxxxx31030 - Real Alloy Recycling Inc Payroll Account

 

Bank of America

 

 

 

 

 

 

 

 

 

 

 

192,324 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

192,324 

xxxxx31016 - Real Alloy Recycling Inc Accounts Payable

 

Bank of America

 

 

 

 

 

 

 

 

 

 

 

848,766 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

848,766 

xxxxx09675 - Real Alloy Recycling Inc 3rd Party Funding Account

 

Bank of America

 

 

 

 

 

 

 

 

 

 

 

213,170 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

213,170 

xxxxx09656 - Real Alloy Recycling Inc Receivables Account

 

Bank of America

 

 

 

 

 

 

 

 

 

 

 

672,735 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

672,735 

xxxxx09651 - Real Alloy Recycling Inc Concentration Account

 

Bank of America

 

 

 

 

 

 

 

 

 

 

 

84,920 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

84,920 

xxxxx09670 - Real Alloy Recycling Inc Adequate Assurance Account

 

Bank of America

 

 

 

 

 

 

 

 

 

 

 

1,295,144 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,295,144 

xxxxx75014 - Real Alloy Holding, Inc Corp Trust (GBP)

 

Bank of America

 

 

 

 

 

 

 

 

145,804 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

145,804 

xxxxx75022 - Real Alloy Holding, Inc Corp Trust (EUR)

 

Bank of America

 

 

 

 

 

 

 

 

55,563 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

55,563 

xxxxxx4386 - Real Alloy Recycling Inc Concentration Account

 

Wintrust

 

 

 

 

 

 

 

 

 

 

 

1,559 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,559 

xxxxxx87819 - Real Alloy Holding, Inc Bondholder Escrow Account

 

JP Morgan Chase

 

 

 

 

 

 

 

 

4,999,975 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,999,975 

xxxxx23243 - Real Industry Inc Collateral Account for Letter of Credit

 

Wells Fargo

 

 

722,279 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

722,279 

xxxxx96415 - Real Industry, Inc

 

Wells Fargo

 

 

6,626,121 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

6,626,121 

 

 

 

 

$

7,348,399 

 

$

-

 

$

5,201,341 

 

$

3,308,617 

 

$

-

 

$

-

 

$

-

 

$

119,581 

 

$

-

 

$

15,977,939 

 

*Balances per bank records as of February 28, 2018.

 

MOR-1b: Schedule of Bank Account Balances

 

 

 

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

 

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CUMULATIVE PAID

 

 

 

 

 

 

 

 

CHECK

 

AMOUNT PAID

 

SINCE PETITION DATE

PAYEE

    

PERIOD

    

AMOUNT

    

PAYOR

    

NUMBER

    

DATE

    

FEES

    

EXPENSES

    

FEES

    

EXPENSES

Alvarez & Marsal Securities, LLC

 

Feb -18

 

$

139,293 

 

Real Alloy Holding, Inc

 

Wire

 

Feb-27-2018

 

$

125,000 

 

$

14,293 

 

$

376,172 

 

$

18,437 

Berkeley Research Group, LLC

 

Feb -18

 

 

- 

 

Real Alloy Holding, Inc

 

 

 

 

 

 

 

 

 

 

 

 

130,868 

 

 

7,765 

Latham & Watkins LLP

 

Feb -18

 

 

286,580 

 

Real Alloy Holding, Inc

 

Wire

 

Feb-08-2018

 

 

284,402 

 

 

2,178 

 

 

731,676 

 

 

56,761 

Prime Clerk

 

Feb -18

 

 

161,079 

 

Real Alloy Holding, Inc

 

ACH

 

Feb-08-2018

 

 

140,000 

 

 

21,079 

 

 

190,000 

 

 

21,079 

Brown Ruddick

 

Feb -18

 

 

- 

 

Real Alloy Holding, Inc

 

 

 

 

 

 

 

 

 

 

 

 

277,851 

 

 

7,332 

Young Conaway Stargatt & Taylor, LLP

 

Feb -18

 

 

- 

 

Real Alloy Holding, Inc

 

 

 

 

 

 

 

 

 

 

 

 

23,485 

 

 

623 

Goldberg Kohn Bell Black

 

Feb -18

 

 

- 

 

Real Alloy Holding, Inc

 

 

 

 

 

 

 

 

 

 

 

 

141,945 

 

 

- 

Environmental Resources Management

 

Feb -18

 

 

152,000 

 

Real Alloy Holding, Inc

 

1100041006 

 

Feb-08-2018

 

 

152,000 

 

 

- 

 

 

289,000 

 

 

- 

Dorsey & Whitney

 

Feb -18

 

 

140,208 

 

Real Alloy Holding, Inc

 

1100041005 

 

Feb-08-2018

 

 

139,805 

 

 

403 

 

 

139,805 

 

 

403 

Smartroom

 

Feb -18

 

 

- 

 

Real Alloy Holding, Inc

 

 

 

 

 

 

- 

 

 

- 

 

 

3,587 

 

 

- 

Prime Clerk

 

Feb -18

 

 

7,505 

 

Real Industry, Inc

 

 

 

 

 

 

7,505 

 

 

- 

 

 

7,505 

 

 

- 

 

 

 

 

$

886,664 

 

 

 

 

 

 

 

$

848,711 

 

$

37,954 

 

$

2,311,892 

 

$

112,401 

 

MOR-1c: Schedule of Professional Fees and Expenses Paid

 

 

 

 

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

CONSOLIDATING STATEMENT OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Filer

 

 

 

 

 

Real Alloy

 

 

 

 

 

Real Alloy

 

Real Alloy

 

 

 

 

 

 

 

Total Filer

 

 

(Month Ended

 

 

 

Real Industry,

 

Intermediate

 

Real Alloy Holding,

 

Real Alloy

 

Specification,

 

Specialty

 

ETS Schaefer,

 

Real Alloy Bens

 

RA Mexico

 

(Cumulative

 

    

02/28/2018)

    

Eliminations

    

Inc

    

Holding, Inc.

    

Inc.

    

Recycling, Inc.

    

Inc.

    

Products, Inc.

    

LLC

    

Run, LLC

    

Holding, LLC

    

Since Filing)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Revenue

 

$

51,543,852 

 

$
(9,211,401)

 

$

5,581 

 

$

-

 

$

- 

 

$

27,381,128 

 

$

31,285,540 

 

$

1,516,194 

 

$

566,810 

 

$

- 

 

$

-

 

$

176,061,829 

Total Cost of Sales

 

 

50,183,011 

 

 
(9,211,401)

 

 

- 

 

 

-

 

 

- 

 

 

27,044,902 

 

 

30,454,105 

 

 

1,350,410 

 

 

529,517 

 

 

15,478 

 

 

-

 

 

168,431,653 

Gross Profits

 

 

1,360,841 

 

 

- 

 

 

5,581 

 

 

-

 

 

- 

 

 

336,226 

 

 

831,435 

 

 

165,784 

 

 

37,293 

 

 
(15,478)

 

 

-

 

 

7,630,176 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total SGA Expenses

 

 

3,668,018 

 

 

- 

 

 

509,322 

 

 

-

 

 

457,170 

 

 

2,425,651 

 

 

204,368 

 

 

58,933 

 

 

12,574 

 

 

- 

 

 

-

 

 

14,488,159 

Total (Gains) Losses on Derivative Financial Instruments

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 
(16,691)

Other Operating (Income) Expense - Net

 

 

- 

 

 

-

 

 

- 

 

 

-

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

64,860 

Operating Income (Loss)

 

 
(2,307,177)

 

 

- 

 

 
(503,741)

 

 

-

 

 
(457,170)

 

 
(2,089,425)

 

 

627,067 

 

 

106,851 

 

 

24,719 

 

 
(15,478)

 

 

-

 

 
(6,906,152)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Expense & Fees

 

 

3,437,541 

 

 

- 

 

 

- 

 

 

-

 

 

1,655,097 

 

 

1,776,797 

 

 

5,133 

 

 

491 

 

 

23 

 

 

- 

 

 

-

 

 

12,190,489 

Total Foreign Currency Gains/Losses

 

 

1,242,825 

 

 

- 

 

 

- 

 

 

-

 

 

1,253,053 

 

 
(10,228)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 
(1,335,430)

Net Mgmt Fee Expense (Income)

 

 

223,043 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

223,043 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

687,829 

Other Expenses

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 
(182)

Income Before Taxes

 

 
(7,210,586)

 

 

- 

 

 
(503,741)

 

 

-

 

 
(3,365,320)

 

 
(4,079,037)

 

 

621,934 

 

 

106,360 

 

 

24,696 

 

 
(15,478)

 

 

-

 

 
(18,448,858)

Income Tax Expenses

 

 

5,275 

 

 

- 

 

 

- 

 

 

-

 

 

5,275 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

14,714 

Net Income From Continuing Operations

 

 
(7,215,861)

 

 

- 

 

 
(503,741)

 

 

-

 

 
(3,370,595)

 

 
(4,079,037)

 

 

621,934 

 

 

106,360 

 

 

24,696 

 

 
(15,478)

 

 

-

 

 
(18,463,572)

Net Income From Discontinued Operations

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

Net Income/Loss Attributable to NCI

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

Net Income

 

$
(7,215,861)

 

$

- 

 

$
(503,741)

 

$

-

 

$
(3,370,595)

 

$
(4,079,037)

 

$

621,934 

 

$

106,360 

 

$

24,696 

 

$
(15,478)

 

$

-

 

$
(18,463,572)

 

MOR-2: Statement of Operations

 

 

 

 

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

CONSOLIDATING BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Alloy

 

 

 

 

 

Real Alloy

 

Real Alloy

 

 

 

 

 

Real Alloy

 

 

 

 

 

 

 

 

Intermediate

 

Real Alloy

 

Real Alloy

 

Specification,

 

Specialty

 

ETS Schaefer,

 

Real Alloy Bens

 

Mexico

 

    

Total Filer

    

Eliminations

    

Real Industry, Inc.

    

Holding, Inc.

    

Holding, Inc.

    

Recycling, Inc.

    

Inc.

    

Products, Inc.

    

LLC

    

Run, LLC

    

Holding LLC

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Cash & Equivalents

 

$

13,967,396 

 

$

- 

 

$

7,322,159 

 

$

-

 

$

- 

 

$

6,467,376 

 

$

- 

 

$

- 

 

$

177,861 

 

$

- 

 

$

- 

Net Accounts Receivable

 

 

70,591,918 

 

 

- 

 

 

226 

 

 

-

 

 
(44,291)

 

 

26,120,123 

 

 

42,403,854 

 

 

1,065,325 

 

 

1,046,681 

 

 

- 

 

 

- 

Total Current Interco Receivable

 

 

25,891,992 

 

 
(606,075)

 

 

- 

 

 

-

 

 
(44,981,349)

 

 

23,525,218 

 

 

39,600,004 

 

 

8,290,504 

 

 

672,205 

 

 
(608,515)

 

 

- 

Net Inventories

 

 

67,238,712 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

22,828,849 

 

 

39,274,841 

 

 

4,514,584 

 

 

620,438 

 

 

- 

 

 

- 

Total Prepaid Expenses

 

 

14,216,197 

 

 

- 

 

 

576,012 

 

 

-

 

 

10,000 

 

 

7,564,993 

 

 

6,000,902 

 

 

64,290 

 

 

- 

 

 

- 

 

 

- 

Total Other Current Assets

 

 

12,885,684 

 

 

- 

 

 

- 

 

 

-

 

 

803,371 

 

 

8,895,873 

 

 

2,830,516 

 

 

355,924 

 

 

- 

 

 

- 

 

 

- 

Total Current Assets

 

 

204,791,899 

 

 
(606,075)

 

 

7,898,397 

 

 

-

 

 
(44,212,269)

 

 

95,402,432 

 

 

130,110,117 

 

 

14,290,627 

 

 

2,517,185 

 

 
(608,515)

 

 

- 

Property, Plant & Equipment, Net

 

 

106,287,454 

 

 

- 

 

 

27,583 

 

 

-

 

 

- 

 

 

59,249,545 

 

 

39,454,188 

 

 

3,107,208 

 

 

2,539,081 

 

 

1,909,849 

 

 

- 

Other Intangibles, Net

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total Equity Investments in Subs

 

 

68,741,249 

 

 
(509,628,414)

 

 

156,337,885 

 

 

-

 

 

303,469,839 

 

 

118,561,938 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

1 

Total L/T Deferred Tax Assets

 

 

8,891,988 

 

 

- 

 

 

8,891,988 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total L/T Interco Receivable

 

 

86,936,781 

 

 
(35,581,838)

 

 

28,442,264 

 

 

-

 

 

58,494,517 

 

 

35,581,838 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Other L/T Assets, Net

 

 

8,655,986 

 

 

- 

 

 

890,786 

 

 

-

 

 

- 

 

 

7,073,481 

 

 

683,135 

 

 

7,948 

 

 

- 

 

 

636 

 

 

- 

Total Assets

 

$

484,305,358 

 

$
(545,816,327)

 

$

202,488,904 

 

$

-

 

$

317,752,087 

 

$

315,869,234 

 

$

170,247,440 

 

$

17,405,783 

 

$

5,056,266 

 

$

1,301,970 

 

$

1 

 

 

 

 

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

 

 

 

 

 

 

 

 

 

Real Alloy

 

 

 

 

 

Real Alloy

 

Real Alloy

 

 

 

 

 

Real Alloy

 

 

 

 

 

 

 

 

Intermediate

 

Real Alloy

 

Real Alloy

 

Specification,

 

Specialty

 

ETS Schaefer,

 

Real Alloy Bens

 

Mexico

 

    

Total Filer

    

Eliminations

    

Real Industry, Inc.

    

Holding, Inc.

    

Holding, Inc.

    

Recycling, Inc.

    

Inc.

    

Products, Inc.

    

LLC

    

Run, LLC

    

Holding LLC

LIABILITIES & STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Accounts Payable

 

$

24,733,976 

 

$

- 

 

$

114,799 

 

$

-

 

$

213,326 

 

$

12,907,475 

 

$

10,642,730 

 

$

624,964 

 

$

217,988 

 

$

12,694 

 

$

- 

Accrued & Other Current Liabilities (A)

 

 

9,481,256 

 

 

- 

 

 

1,866,168 

 

 

-

 

 

253,333 

 

 

5,406,181 

 

 

1,688,949 

 

 

94,235 

 

 

144,937 

 

 

27,453 

 

 

- 

Total F/V S/T Hedge Liab. Contracts

 

 

213,110 

 

 

- 

 

 

- 

 

 

-

 

 

213,110 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Toll Liability

 

 

3,980,571 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

173,653 

 

 

3,806,918 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Accrued Interest

 

 

5,100,410 

 

 

- 

 

 

- 

 

 

-

 

 

4,911,111 

 

 

189,299 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total Cur. Def. Tax Liability

 

 

-

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total Current Interco Payable

 

 

24,603,105 

 

 
(605,336)

 

 

4,094 

 

 

-

 

 

10,929,894 

 

 

14,155,221 

 

 

3,390,207 

 

 

452,348 

 

 
(3,723,323)

 

 

- 

 

 

- 

Current Maturities of L/T Debt

 

 

292,108,036 

 

 

- 

 

 

5,300,000 

 

 

-

 

 

167,190,081 

 

 

118,960,776 

 

 

601,497 

 

 

53,869 

 

 

1,813 

 

 

- 

 

 

- 

Liabilities of Discontinued Operations - Current

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total Current Liabilities

 

 

360,220,463 

 

 
(605,336)

 

 

7,285,060 

 

 

-

 

 

183,710,855 

 

 

151,792,605 

 

 

20,130,301 

 

 

1,225,416 

 

 
(3,358,585)

 

 

40,147 

 

 

- 

Total L/T Debt

 

 

2,022,522 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

1,224,100 

 

 

724,920 

 

 

67,991 

 

 

5,511 

 

 

- 

 

 

- 

Total L/T I/C Payable

 

 
(9,932,584)

 

 
(35,582,577)

 

 

- 

 

 

-

 

 

25,359,981 

 

 

290,011 

 

 

1 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total Other L/T Liabilities (B)

 

 

10,161,977 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

4,214,055 

 

 

5,850,272 

 

 

72,650 

 

 

25,000 

 

 

- 

 

 

- 

Total L/T Liabilities

 

 

2,251,915 

 

 
(35,582,577)

 

 

- 

 

 

-

 

 

25,359,981 

 

 

5,728,166 

 

 

6,575,193 

 

 

140,641 

 

 

30,511 

 

 

- 

 

 

- 

Total Liabilities - Subject to Compromise - External

 

 

217,539,378 

 

 

 

 

 

30,590,455 

 

 

-

 

 

146,922,891 

 

 

19,497,568 

 

 

19,078,432 

 

 

876,374 

 

 

546,368 

 

 

27,290 

 

 

- 

Total Liabilities - Subject to Compromise – Internal

 

 

- 

 

 

- 

 

 

- 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total Liabilities - Subject to Compromise

 

 

217,539,378 

 

 

- 

 

 

30,590,455 

 

 

-

 

 

146,922,891 

 

 

19,497,568 

 

 

19,078,432 

 

 

876,374 

 

 

546,368 

 

 

27,290 

 

 

- 

Total Liabilities

 

 

580,011,756 

 

 
(36,187,913)

 

 

37,875,515 

 

 

-

 

 

355,993,727 

 

 

177,018,339 

 

 

45,783,926 

 

 

2,242,431 

 

 
(2,781,706)

 

 

67,437 

 

 

- 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock - Total

 

 

29,807 

 

 

- 

 

 

29,807 

 

 

-

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Additional Paid-In Capital - Total

 

 

545,263,660 

 

 
(509,628,414)

 

 

545,263,660 

 

 

-

 

 

173,259,645 

 

 

222,511,312 

 

 

99,016,761 

 

 

8,906,982 

 

 

3,940,748 

 

 

1,992,965 

 

 

1 

Retained Earnings

 

 
(630,065,762)

 

 

- 

 

 
(380,680,078)

 

 

-

 

 
(200,567,182)

 

 
(83,660,417)

 

 

25,446,753 

 

 

6,256,370 

 

 

3,897,224 

 

 
(758,432)

 

 

- 

Total Other Comprehensive Income/(Loss)

 

 
(10,934,103)

 

 

- 

 

 

 

 

 

-

 

 
(10,934,103)

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

 

 

- 

Total Stockholders' Equity

 

 
(95,706,399)

 

 
(509,628,414)

 

 

164,613,388 

 

 

-

 

 
(38,241,640)

 

 

138,850,895 

 

 

124,463,514 

 

 

15,163,352 

 

 

7,837,972 

 

 

1,234,533 

 

 

1 

Total Liabilities & Equity

 

$

484,305,358 

 

$
(545,816,327)

 

$

202,488,904 

 

$

-

 

$

317,752,087 

 

$

315,869,234 

 

$

170,247,440 

 

$

17,405,783 

 

$

5,056,266 

 

$

1,301,970 

 

$

1 

 

Notes:

(A) Includes certain prepetition claims for wages and taxes approved by the Court and costs related to potential future environmental remediation.

(B) Includes costs related to potential future environmental remediation and tax liabilities.

 

MOR-3: Balance Sheet

 

 

 

 

 

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

SUMMARY OF UNPAID POST-PETITION DEBTS

 

 

 

 

 

 

    

Current

 

 

 

Accounts Payable

 

$

24,733,975 

 

MOR-4: Summary of Unpaid Post-Petition Debts

 

 

 

 

In re: Real Industry, Inc., et al.

Case No. 17-12464 (KJC)

Debtors

Reporting Period: February 1, 2018 – February 28, 2018

 

ACCOUNTS RECEIVABLE AGING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

0-30 Days

    

31-60 Days

    

61-90 Days

    

91 Days +

    

Total

Accounts Receivable Aging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Receivable

 

$

68,733,816 

 

$

235,581 

 

$

1,577,174 

 

$

539,319 

 

$

71,085,889 

Unapplied Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(202,971)

Allowance for Doubtful Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(291,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

70,591,918 

 

DEBTOR QUESTIONNAIRE

 

 

 

 

Must be completed each month

Yes

No

 

 

 

1.  Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.

 

X

 

 

 

 

 

 

2.  Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.

 

X

 

 

 

 

 

 

3.  Have all post petition tax returns been timely filed? If no, provide an explanation below.

X

 

 

 

 

 

 

 

4.  Are workers compensation, general liability and other necessary insurance coverages in effect?  If no, provide an explanation below.

X

 

 

 

 

 

 

 

5.  Has any bank account been opened during the reporting period?  If yes, provide documentation identifying the opened account(s).  If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3. (1)

 

X

 

 

 

 

MOR-5: Accounts Receivable Aging AND Debtor Questionnaire