Florida Reprographics (Tampa, FL) Chapter 11 Bankruptcy (Part 8)

We’ve done seven previous posts on “Reprographics 101” about Florida Reprographics’ Chapter 11 Bankruptcy. If you want to review those earlier posts, enter “Florida Reprographics” in the search window on this blog.

Our last article/post about FR’s BK matter was published on Tuesday, April 19^th, 2011.

We just completed a very brief review of additional BK Court filings, since then, and, now, here’s a brief update for those of you who are following (or who have an interest in the outcome of) the FR BK matter.

1. A modification to the previously filed BK Reorganization Plan was filed, but I think the only party the modification affected was PNC Bank, FR’s largest secured creditor.

2. Apparently, very few (only five or six) creditors bothered to “vote” on the BK Reorganization Plan. Those that did vote all voted to confirm (accept) the BK Reorganization Plan.

3. Chris Charles, the owner of FR submitted a filing to confirm that he is in favor of the BK Reorganization Plan (not surprising, at all, since he’s allowed to collect a $4,000 bi-weekly salary from the company!) :):):)

4. I don’t think the BK Court has yet to officially confirm and accept the Reorganization Plan, but I do think that the Court’s formal / official acceptance is a foregone conclusion, and I say that because I did not see any “negative” ballots cast in the creditor voting process.

During the first week of May, Florida Reprographics filed with the Bankruptcy Court its Operating Report for March 2011. In our previous post (on April 19^th), we included a table to show FR’s operating results from December, January and February. The table you’ll next see has been updated to include March 2011:

The “table” below is an at-a-glance summary of the information FR has reported about its business operations since filing BK.

Info pulled from FR Monthly Operating Reports	For month of	For month of	For month of	For month of
	Dec-10	Jan-11	Feb-11	Mar-11
Cash Receipts ("Income") for the month	$38,620	$29,827	$35,674	$31,003
A/R Balance at the end of the month	$124,505	$136,199	$109,520	$117,441
Number of employees as of date of report	9	7	7	7

The monthly report that’s required to be filed each month does contain a numerous list of “standard” questions, and, below, I’ve chosen to publish some of the “standard” questions from the most recent monthly report; I decided to do this because I found some of the answers, this month, to be thought provoking. Unfortunately, beyond answering “yes” or “no”, the reporting procedure does not, apparently, require any further details. The lack of detail kind of leaves one wondering, “what’s going on?”

My questions:

a) Did someone new-to-the-scene make an investment in the business?

b) Did the company find a new source of financing (to perhaps fund/finance continuing operations?)

Okay, here are some of the “standard” questions that appear in the monthly report and the “yes” answers that were given to these particular questions in the report filed for the month of March:

	Yes	No
Do you plan to continue to operate the business next month?	X
Did you have any unusual or significant unanticipated expenses this month?	X
Has the business sold any goods or provided services or transferred any assets to any business related to the DIP (debtor-in-possession) in any way?	X
Do you have any bank accounts open other than the DIP account?	X
Have you sold any assets other than inventory this month?	X
Did any insurance company cancel your policy this month?	X
Have you borrowed money from anyone this month?	X
Has anyone made an investment in your business this month?	X
Have you paid any bills that you owed before you filed for bankruptcy?	X

Joel’s further comments:

Unless FR’s business achieves a miraculous turnaround, I don’t see how the largest secured creditor is going to be able to collect the full amount of the debt owed to it by FR. And, I certainly don’t see how any of the unsecured creditors are going to be able to collect much, if anything, of the debts they are owed. The reprographics business in the Tampa Bay Market area is “kind of” in the toilet, due to the fact that the A/E/C industry in the area is also in the toilet.

For those of you who want to see the March 2011 Operating Report, you can access it by clicking on this link:

https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B81al4kFAU9JYTU0ZGViZmQtMjk1OS00MzIxLWEwYzEtNDRjODEyMmEyNWFj&hl=en&authkey=CNqk7d4M

For those of you who want to see the “Modification to the BK Reorg Plan”, you can access it by clicking on this link:

https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B81al4kFAU9JOTU2M2IzZjgtNjdiYi00YWEyLThmNDQtMzdmNTNmOWZjYTg2&hl=en&authkey=CN-IjsUM

For those of you who want to see the document filed by Chris Charles that shows his support of the BK Reorg Plan, you can access it by clicking on this link:

https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B81al4kFAU9JMGM1YWE0MGEtODRlZi00OGE0LTgxNjYtNjU4OTQ4ODk4NGEw&hl=en&authkey=COXJgwM

Disclaimer: You should not rely on this article, nor on this blog, for definitive or exact information about a matter that’s in any court. You can, on your own, access court records (and any and all filings) by opening an account at www.pacer.gov