Case 9:16-bk-11912-PC Doc 184 Filed 01/17/17 Entered 01/17

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Laura Davis Jones (DE Bar No. 2436) (Admitted Pro Hac Vice) Jeffrey W. Dulberg (CA Bar No. 181200) Victoria A. Newmark (CA Bar No. 183581) PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica Blvd., 13th Floor Los Angeles, CA 90067 Telephone: 310/277-6910 Facsimile: 310/201-0760 E-mail: [email protected] [email protected] [email protected] Attorneys for Channel Technologies Group, LLC, Debtor and Debtor in Possession
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
Debtor.
Case No.: 9:16-bk-11912-PC Chapter 11 SUBMISSION OF MONTHLY OPERATING REPORT FOR THE PERIOD DECEMBER 1, 2016 – DECEMBER 31, 2016
TO THE HONORABLE PETER CARROLL, UNITED STATES BANKRUPTCY JUDGE
AND ALL INTERESTED PARTIES:
Channel Technologies Group, LLC, the above-captioned Chapter 11 debtor and debtor in
possession, hereby submits its Monthly Operating Report for the period December 1, 2016 –
December 31, 2016.
By /s/ Jeffrey W. Dulberg Jeffrey W. Dulberg
Attorneys for Channel Technologies Group, LLC, Debtor and Debtor in Possession
1 The last four digits of the Debtor’s Tax Identification Number are: 0460. The Debtor’s mailing address is: 879 Ward Drive, Santa Barbara, CA 93111.
Case 9:16-bk-11912-PC Doc 184 Filed 01/17/17 Entered 01/17/17 15:14:21 Desc Main Document Page 1 of 19
In Re:
UNITED STATES DEPARTMENT OF JUSTICE OFFICE OF THE UNITED STATES TRUSTEE
CENTRAL DISTRICT OF CALIFORNIA
Operating Report Number: ------.,--.,---:i3 L-------------------------~D~eb~t~or~(s~). ~F~o~r~ili~e_M_o~n~fu~E~nd~i~ng~: _____________ 1_2_13_1_/2_0_16~
I. CASH RECEIPTS AND DISBURSEMENTS A. (GENERAL ACCOUNT*)
1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL ACCOUNT REPORTS
3. BEGINNING BALANCE:
~~~-------- Vendor refunds Insurance Refund Rental Income Proceeds from MSI sale
**Other (Specify)
2,908,377 615,286
~---------~-"---~
$
$
Depository Name & Location: 135 N. Los Robles Ave., Suite 600 Pasadena, CA 911 0 1
* All receipts must be deposited into the general account.
•' Include receipts from the sale of any real or personal property out of the ordinary course of business; attach an exhibit specifying what was sold,
to whom, tenus, and date of Comt Order or Report of Sale.
***This amount should be the same as the total from page 2.
CTG MOR- December 2016
lA
TOTAL DISBURSEMENTS FROM GENE!?AL ACCOUNT FOR CURRENT PERIOD
Check •Amount ••Amount Payee or DIP account Purpose Transfered Disbursed Amount
12/112016 N/A AETNA Insurance Premiums/Fees $12,977 $12,977 12/1/2016 N/A ALTA PROPERTIES, INC. Rent $126,004 $126,004 12/112016 8 DIANA HUGHES Employee Reimbursement or Final Check $5,169 $5,169 1211/2016 N/A FFDTRUST Rent $16,981 $16,981 12/1/2016 7 LINA (CIGNA GROUP INSURANCE) Insurance Premiums/Fees $10,481 $10,481 1211/2016 N/A Med-I-Bank Flexible Spending Account $245 $245 1211/2016 9 PLEX SYSTEMS,!NC ERP Subscription Fee $17,120 $17,120 12/112016 N/A The Hartford Workers' Comp Insurance $34 $34 12/2/2016 N/A ADP Payroll Fees $571 $571 12/2/2016 N/A AETNA Insurance Premiums/Fees $20,261 $20,261 12/2/2016 N/A CIT Bank Bank Fees $110 $110 12/2/2016 N/A East West Bank Bank Fees $60 $60 12/2/2016 10 JEFFREY GOLDEN Employee Reimbursement or Final Check $2,459 $2,459 12/2/2016 N/A Med-I-Bank Flexible Spending Account $74 $74 12/2/2016 N/A The Hartford Workers' Com_pinsurance $9,747 $9,747 12/5/2016 II JOHN LONGYEAR Employee Reimbursement or Final Check $8,973 $8,973 12/5/2016 N/A Med-I-Bank Flexible Spending Account $98 $98 12/5/2016 N/A Med-I-Bank Flexible Spending Account $1,274 $1,274 12/6/2016 N/A East West Bank Bank Fees $15 $15 12/6/2016 N/A East West Bank Bank Fees $16 $16 12/6/2016 N/A East West Bank Bank Fees $18 $18 12/6/2016 N/A IGOE and Comp_any Flexible Spending Account $260 $260 12/6/2016 N/A Med-I-Bank Flexible Spending Account $6 $6 12/7/2016 N/A ADP Payroll $322,179 $322,179 12/7/2016 N/A ANTHEM BLUE CROSS Insurance Premiums/Fees $11,402 $11,402 12/7/2016 N/A East West Bank Bank Fees $24 $24 12/7/2016 N/A Med-1-Bank Flexible Spending Account $51 $51 12/7/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for PSZJ $50,000 $50,000 12/7/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for CR3 $33,400 $33,400 12/7/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for Prime Clerk $6,189 $6,189 12/7/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for UCC $3,750 $3,750 12/7/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for Lender's Legal $6,250 $6,250 12/8/2016 N/A ADP Payroll $1,912 $1,912 12/8/2016 N/A ADP Payroll Taxes $148,417 $148,417 12/8/2016 51 ADVANCED MACHINE TECHNOLOGIES Production Material/Supplies $502 $502 12/8/2016 52 AIRGAS USA, LLC Production Material/Supplies $133 $133 12/8/2016 13 ALISON ORR Employee Reimbursement or Final Check $39 $39 12/8/2016 53 ALL WAYS CLEAN Janitorial Services $2,479 $2,479 12/8/2016 54 ALLIED ELECTRONICS, INC. Production Material/Supplies $13 $13 12/8/2016 55 AMERIGAS PROPANE LP Production Material/Supplies $218 $218 12/8/2016 56 AQUA-FLO SUPPLY Production Material/Supplies $187 $187 12/8/2016 14 ARSEN MELCONIAN Employee Reimbursement or Final Check $1,500 $1,500 12/8/2016 38 ARSEN MELCONIAN Employee Reimbursement or Final Check $1,500 $1,500 12/8/2016 41 AT CONFERENCE Telecommunication Services $4 $4 12/8/2016 57 BAY ALARM COMPANY Security System $230 $230 12/8/2016 15 BETTY BAZAN Employee Reimbursement or Final Check $1 $1 12/8/2016 16 BRIANPAZOL Employee Reimbursement or Final Check $150 $150 12/8/2016 58 BRYLEN TECHNOLOGIES Production Material/Supplies $678 $678 12/8/2016 17 CESAR HERRERA Employee Reimbursement or Final Check $9 $9 12/8/2016 59 CINT AS DOCUMENT MANAGEMENT Other $444 $444 12/8/2016 60 CONTINENTAL DIAMOND TOOL CORP Production Material/Supplies $298 $298 12/8/2016 18 CURTIS STEVENS Employee Reimbursement or Final Check $23 $23 12/8/2016 20 DAVID OVERLAND Employee Reimbursement or Final Check $178 $178 12/8/2016 61 DOCUPRODUCTS Other $1,258 $1,258 12/8/2016 62 E.V. ROBERTS & ASSOCIATES Production Material/Supplies $184 $184 12/8/2016 63 EAGLE MAINTENANCE CO. Production Material/Supj>lies $235 $235 12/8/2016 21 EDWARD M FISH Employee Reimbursement or Final Check $2,620 $2,620 12/8/2016 23 ELECTRO OPTICAL INDUSTRIES, INC. Receipts for EO! $7,185 $7,185 12/8/2016 64 ELLSWORTH ADHESIVES Production Material/Supplies $2,232 $2,232 12/8/2016 22 ELVIRA BRACAMONTE Employee Reimbursement or Final Check $885 $885 12/8/2016 42 ENTERPRISE RIDES HARE Other $7,443 $7,443 12/8/2016 N/A East West Bank Bank Fees $10 $10 12/8/2016 N/A East West Bank Bank Fees $24 $24 12/8/2016 65 FED EX Freight $3,549 $3,549 12/8/2016 24 FELICIT AS BAUTISTA Employee Reimbursement or Final Check $3 $3 12/8/2016 66 FIRST CHOICE Building Services $67 $67 12/8/2016 67 GASKET SPECIAL TIES, INC Production Material/Supplies $360 $360
CTG MOR- December 2016 lA p2-General Account
12/8/2016 43 GOLETA SANITARY DISTRICT Utilities $445 $445 12/8/2016 68 GRAINGER Production Material/Supplies $463 $463 12/8/2016 69 HARDWARE SPECIALTY CO Production Material/Supplies $100 $100 12/8/2016 70 HIS CO Production Material/Supplies $137 $137 12/8/2016 25 HOA PHI HUYNH Employee Reimbursement or Final Check $27 $27 12/8/2016 71 !GO'S WELDING SUPPLY CO, INC. Production Material/Supplies $6 $6 12/8/2016 72 !MARC Other $190 $190
12/8/2016 73 J.R. BARTO HEATING & AIR CONDITIONING -j Building Services $1,311 $1,311 12/8/2016 26 JACOBDUHS Employee Reimbursement or Final Check $1,648 $1,648 12/8/2016 27 JAMES J SOUKUP Employee Reimbursement or Final Check $3 $3 12/8/2016 74 JESSE GARANT & ASSOCIATES METROLOGY< Production Material/Supplies $4,388 $4,388 12/8/2016 75 JORDANO'S Other $347 $347 12/8/2016 28 JORGE RAMIREZ Employee Reimbursement or Final Check $12 $12 12/8/2016 29 JOSE TORRES Employee Reimbursement or Final Check $19 $19 12/8/2016 30 JUAN PEREZ Employee Reimbursement or Final Check $21 $21 12/8/2016 31 KATHY RAMOS Employee Reimbursement or Final Check $35 $35 12/8/2016 76 LANDSBERG Shipping Suppjies $2,196 $2,196 12/8/2016 77 LAWRENCE E. PRICE Utilities $2,378 $2,378 12/8/2016 78 LEAF Other $231 $231 12/8/2016 32 LEE ANN BRAINARD Janitorial Services $140 $140 12/8/2016 79 LEE SPRING CO Production Material/Supplies $136 $136 12/8/2016 44 LELD Utilities $4,379 $4,379 12/8/2016 80 LIGHTHOUSE PLACEMENT SERVICES -REMIT Temp Labor $1,714 $1,714 12/8/2016 12 LINDA AKENS Consulting $385 $385 12/8/2016 39 LITTLETON POOL CO. INC. Utilities $430 $430 12/8/2016 81 MACDERMID INDUSTRIAL SOLUTIONS Production Materiai/S upplies $419 $419 12/8/2016 33 MAl XIONG Employee Reimbursement or Final Check $2 $2 12/8/2016 45 MARBORG INDUSTRIES Trash Pickup/Hazardous Waste $4,120 $4,120 12/8/2016 34 MARIA MILLER Employee Reimbursement or Final Check $245 $245 12/8/2016 35 MARK SECOVICH Employee Reimbursement or Final Check $1,351 $1,351 12/8/2016 N/A Med-I-Bank Flexible Spending Account $313 $313 12/8/2016 83 MID-STATE CONTAINER SALES INC Storage Containers $184 $184 12/8/2016 84 MILLERS BUILDING MAINTENANCE Janitorial Services $5,080 $5,080 12/8/2016 85 MISSION UNIFORM SERVICE Uniform Cleaning Services $2,631 $2,631 12/8/2016 86 MOBILE MINI Storage Containers $555 $555 12/8/2016 87 MOUSER ELECTRONICS Production Material/Supplies $27 $27 12/8/2016 88 N.E. COPY SPECIALISTS, INC. Other $35 $35 12/8/2016 89 ONESOURCE WATER Building Services $206 $206 12/8/2016 90 PEl GENESIS, INC Production Material/Supplies $623 $623 12/8/2016 91 PITNEY BOWES GLOBAL FINANCIAL Building Services $153 $1.'i3 12/8/2016 92 PORT PLASTICS INC. Production Material/Supplies $50 $50 12/8/2016 93 PRECISION SCREW MACHINE PROD Production Material IS upplies $3,917 $3,917 12/8/2016 94 PURETEC INDUSTRIAL WATER Building Services $50 $50 12/8/2016 95 RACKSPACE Telecommunication Services $5,020 $5,020 12/8/2016 96 RAYNEOFSANTABARBARAINC Building Services $31 $31 12/8/2016 97 SAFETY-KLEEN SYSTEMS, INC Building Services $240 $240 12/8/2016 46 SANTA BARBARA COUNTY EHS Environmental $1,365 $1,365 12/8/2016 98 SHAWSHEEN AIR SERVICES, INC Building Services $778 $778 12/8/2016 99 SHRED-IT USA LLC Building Services $2,167 $2,167 12/8/2016 40 SON NGUYEN Employee Reimbursement or Final Check $60 $60 12/8/2016 47 SOUTHERN CALIFORNIA EDISON CO Utilities $18,219 $18,219 12/8/2016 100 SOUTHWEST IMPREGLON SALES, INC. Other $1,915 $1,915 12/8/2016 101 SPARKLETTS Building Services $120 $120 12/8/2016 102 SPHERION STAFFING LLC Temp Labor $3,681 $3,681 12/8/2016 103 STAPLES BUSINESS ADVANTAGE Office Supplies $180 $180 12/8/2016 48 THE GAS COMPANY Utilities $877 $877 12/8/2016 104 TRAM ONTO CIRCUITS Production Material/Supplies $550 $550 12/8/2016 105 TRS TECHNOLOIGES, INC Production Material/Supplies $3,045 $3,045 12/8/2016 106 ULINE Shipping Supplies $1,266 $1,266 12/8/2016 107 UPS Freight $1,180 $1,180 12/8/2016 36 VALERIE M.REYES-WENER Employee Reimbursement or Final Check $38 $38 12/8/2016 49 VERIZON Telecommunication Services $140 $140 12/8/2016 50 VERIZON WIRELESS Telecommunication Services $2,387 $2,387 12/8/2016 108 VOLT Temp Labor $6,996 $6,996 12/8/2016 37 WILLIAM D. CIDZIK Employee Reimbursement or Final Check $5,000 $5,000 12/8/2016 110 WILLIAM D. CIDZIK Employee Reimbursement or Final Check $5,000 $5,000 12/8/2016 109 WOODARD & CURRAN Consulting $404 $404 12/9/2016 N/A ADP Payroll Fees $20 $20 12/9/2016 N/A ADP Payroll Fees $20 $20 12/9/2016 N/A East West Bank Bank Fees $12 $12 12/9/2016 N/A Great West Employee 40 I k contributions $34,939 $34,939 12/9/2016 N/A Med-I-Bank Flexible Spending Account $244 $244
12/9/2016 Ill PERLA V SANTOS Employee Reimbursement or Final Check $551 $551 12/9/2016 112 RYAN SCHAAESMA Employee Reimbursement or Final Check $2,793 $2,793
12/12/2016 113 CURTIS C. GORDON Employee Reimbursement or Final Check $793 $793 12/12/2016 I DAMON DE LA PENA Employee Reimbursement or Final Check $5,225 $5,225 12112/2016 N/A Med-I-Bank Flexible Spending Account $48 $48 12/12/2016 N/A Med-I-Bank Flexible Spending Account $67 $67 12/13/2016 N/A Med-I-Bank Flexible Spending Account $151 $151 12/13/2016 114 RAUL LOPEZ Em_ployee Reimbursement or Final Check $681 $681 12/14/2016 116 ANALYTICAL ANSWERS, INC. Production Material/Supplies $1,470 $1,470 12114/2016 127 APM HEXSEAL CORP. Production Material/Supplies $120 $120 12114/2016 117 APPLICANTPRO Other $638 $638 12/14/2016 119 CASE DETECTIVE AGENCY Other $198 $198 12/14/2016 120 FIRMEXCORP Data Room $250 $250 12/14/2016 121 FLORIDA U.C. FUND Other $204 $204 12114/2016 125 GOLETA WATER DISTRICT Utilities $316 $316 12114/2016 115 LINDA AKENS Consulting $210 $210 12114/2016 126 MARBORG INDUSTRIES Trash Pickup/Hazardous Waste $3,724 $3,724 12114/2016 128 MARIA MILLER Employee Reimbursement or Final Check $485 $485 12/14/2016 122 MARK SHAW Employee Reimbursement or Final Check $287 $287 12/14/2016 N/A Med-I-Bank Flexible Spending Account $115 $115 12114/2016 123 MISSION UNIFORM SERVICE Uniform Cleaning Services $1,361 $1,361 12/14/2016 124 RACKS PACE Telecommunication Services $5,020 $5,020 12/15/2016 NIA ADP Payroll $1,325 $1,325 12/15/2016 N/A ADP Payroll Taxes $159,964 $159,964 12/15/2016 15 ANTHEM BLUE CROSS Insurance Premiums/Fees $68,186 $68,186 12/15/2016 16 CAL WEST ENVIRONMENTAL Trash Pickup/Hazardous Waste $15,841 $15,841 12/15/2016 N/A East West Bank Bank Fees $24 $24 12115/2016 N/A Med-1-Bank Flexible Spending Account $100 $100 12/15/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for PSZJ $50,000 $50,000 12115/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for CR3 $33,400 $33,400 12115/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for Prime Clerk $5,823 $5,823 12115/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for Lender's Legal $6,250 $6,250 12116/2016 N/A ADP Payroll Fees $556 $556 12116/2016 N/A ADP Payroll $398,514 $398,514 12/16/2016 N/A East West Bank Bank Fees $30 $30 12/16/2016 N/A Med-1-Bank Flexible Spending Account $200 $200 12/16/2016 N/A The Hartford Workers' Comp Insurance $9,276 $9,276 12/19/2016 129 ALISON ORR Employee Reimbursement or Final Check $119 $119 12/19/2016 N/A American Express Credit Card Payment $50,171 $50,171 12/19/2016 N/A East West Bank Bank Fees $12 $12 12/19/2016 130 MATTHEW KAY Employee Reimbursement or Final Check $106 $106 12/19/2016 N/A Med-1-Bank Flexible Spending Account $110 $110 12/19/2016 N/A Med-I-Bank Flexible Spendi11g Account $326 $326 12/20/2016 NIA CIT Bank Bank Fees $901 $901 12120/2016 N/A IGOE and Company Flexible Spending Account $560 $560 12/20/2016 N/A Med-1-Bank Flexible Spending Account $48 $48 12/20/2016 22 MERECO TECHNOLOGIES, INC. Production Material/Supplies $500 $500 12/2112016 N/A ADP Payroll $1,86I $1,861 12/21/2016 N/A ADP Payroll Taxes $58,300 $58,300 12/2112016 N/A ADP Payroll $158,188 $158,188 12/21/2016 132 AETNA Insurance Premiums/Fees $1,648 $1,648 12/2112016 133 AIRGAS USA, LLC Production Material/Supplies $129 $129 12/2112016 23 ANTHEM BLUE CROSS Insurance Premiums/Fees $24,480 $24,480 12/21/2016 134 ANTHEM BLUE CROSS Insurance Premiums/Fees $31,649 $31,649 12/21/2016 135 CANON FINANCIAL SERVICES, INC. Telecommunication Services $1,618 $1,618 12/21/2016 136 CCT PLASTICS Production Material/Supplies $664 $664 12/2112016 138 COLONIAL PROCESSING CENTER Insurance Premiums/Fees $506 $506 12/2112016 NIA East West Bank Bank Fees $10 $10 12/2112016 N/A East West Bank Bank Fees $48 $48 12/2112016 139 FIDELITY SECURITY LIFE/EYEMED Insurance Premiums/Fees $1,802 $1,802 12/21/2016 140 FIRST CHOICE Building Services $67 $67 12/21/2016 24 FRANCHISE TAX BOARD Tax $564 $564 12/21/2016 141 FRONTIER Telecommunication Services $133 $133 12/21/2016 142 GASKET SPECIALTIES, INC Production Material/Supplies $390 $390 12/21/2016 143 HUB INTERNATIONAL Insurance Premiums/Fees $10,282 $10,282 12/2112016 144 IMPULSE ADVANCED COMMUNIC Telecommunication Services $1,933 $1,933 12/21/2016 145 LAWRENCE E. PRICE Utilities $2,378 $2,378 12/21/2016 146 LEGAL SHIELD Insurance Premiums/Fees $247 $247 12/2112016 137 LINA (CIGNA GROUP INSURANCE) Insurance Premiums/Fees $10,386 $10,386 12/21/2016 147 MARBORG INDUSTRIES Trash Pickup/Hazardous Waste $754 $754 12/2112016 148 MARIA MILLER Employee Reimbursement or Final Check $88 $88 12/2112016 162 MCMASTER-CARR SUPPLY CO. Production Material/Supplies $68 $68
12/21/2016 150 MILLERS BUILDING MAINTENANCE Janitorial Services 12/21/2016 151 MISSION UNIFORM SERVICE Uniform Cleaning Services 12/21/2016 152 MOBILE MINI Storage Containers 12/21/2016 153 PITNEY BOWES GLOBAL FINANCIAL Building Services 12/21/2016 154 PRAXAIR Production Material/Supplies 12/21/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for PSZJ 12/21/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for CR3 12/21/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for Prime Clerk 12/21/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for Lender's Legal 12/21/2016 155 PURCHASE POWER Production Material/Supplies 12/21/2016 156 RAYNE OF SANTA BARBARA INC Building Services 12/21/2016 157 SPARKLETTS Building Services 12/21/2016 158 TAM CERAMICS GROUP OF NY, LLC Production Material/Supplies 12/21/2016 159 TYCO INTEGRATED SECURITY LLC Other 12/21/2016 160 UPS Freight 12/21/2016 161 VERIZON WIRELESS Telecommunication Services 12/22/2016 N/A Blue Wolf Capital Fund LLP Loan Facility Payment 12/22/2016 N/A East West Bank Bank Fees 12/22/2016 N/A Med-1-Bank Flexible Spending Account 12/23/2016 N/A ADP Payroll Fees 12/23/2016 N/A East West Bank Bank Fees 12/23/2016 N/A Great West Employee 401k contributions 12/23/2016 N/A Great West Employee 40 1 k contributions 12/23/2016 N/A Med-1-Bank Flexible Spending Account 12/27/2016 N/A Med-I-Bank Flexible Spending Account 12/27/2016 N/A Med-1-Bank Flexible Spending Account 12/27/2016 N/A Med-I-Bank Flexible Spending Account 12/28/2016 25 ANTHEM BLUE CROSS Insurance Premiums/Fees 12/28/2016 N/A East West Bank Bank Fees 12/28/2016 N/A East West Bank Bank Fees 12/28/2016 N!A IGOE and Company Flexible Spending Account 12/28/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for PSZJ 12/28/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for CR3 12/28/2016 NIA PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Payment for Prime Clerk 12/28/2016 N/A PROFESSIONAL FEES ACCOUNT- 5500006391 Reserve Pay_ment for Lender's Legal 12/29/2016 N/A Med-1-Bank Flexible Spending Account 12/30/2016 N/A ADP Payroll Fees 12/30/2016 N/A ALTA PROPERTIES, INC. Rent 12130/2016 N!A East West Bank Bank Fees 12/30/2016 N/A East West !:lank Bank Fees 12/30/2016 N/A Med-1-Bank Flexible Spending Account 12/30/2016 N/A The Hartford Workers' Comp Insurance 12/30/2017 N/A ANTHEM BLUE CROSS Insurance Premiums/Fees
TOTAL DISBURSEMENTS THIS PERIOD:
*Fill in amounts in this column if they are TRANSFERS to another DIP account (e.g. Payroll or Tax); the "arnount 11 column will be filled in for you. ** Fill in amounts in this column if they are DISBURSEMENTS to outside payees; the 11amount" column will be filled in for you.
$3,573 $3,573 $1,371 $1,371
$50,000 $50,000 $33,400 $33,400
$5,823 $5,823 $6,250 $6,250
$100 $100 $31 $31
$1,098 $1,098 $2,358 $2,358
$1,750,000 $1,750,000 $12 $12
$450 $450 $563 $563
$229 $229 $10 $10 $27 $27 $40 $40
$15,243 $15,243 $10 $10 $12 $12
$307 $307 $50,000 $50,000 $23,400 $23,400
$5,823 $5,823 $6,250 $6,250
$40 $40 $321 $321
$0
$376,008 $3,907,126 $4,283,134
lA p2-General Account
TOTAL DISBURSEMENTS FROM PROFESSIONAL SHRV!CES ACCOUNT FOR CURRENT PERIOD
Amounts reserved for Professional Services Fees Amounts reserved for Professional Services Fees
Total Depositsffransfers
Check *Amount **Amount y Number Payee or DIP account Purpose Transfered Disbursed Am
12/28/2016 Pachulski Stang Ziehl & Jones LLP Legal services $323,181 $323,181 12/28/2016 CR3 Partners, LLC Restructuring/management consulting $167,766 $167,766 12/28/2016 East West Bank Wire Fee $12 $12 12/28/2016 East West Bank Wire Fee $12 $12
TOTAL DISBURSEMENTS TillS PERIOD: $0 $490 971 $490,971
Ending Balance- 12/31/161 $517,3751
CTG MOR - December 2016 Ref (lA p2-Professional Fees)
CASH RECONCILIATION AT 12/31/2016 Attachment lA p3
EAST WEST EAST WEST PRO ACCOUNT NAME CIT - GENERAL GENENERAL TOTAL GENERAL FEES CTGTOTAL Book Balance at 12/31/2016 $ 10,000 $ 1,725,059 $ 1,735,059 $ 517,375 $ 2,252,434
BANKACCT# BANKACCT# BANKACCT# XXXXXX0565 55-00006384 55-00006391
Balance per Bank at 12/31/2016 $ 10,000 $ 1,748,244 $ 1,758,244 $ 517,375 $ 2,275,619 Outstanding checks $ $ (23,185) $ (23, 185) $ $ (23, 185)
ADJUSTED BANK BALACE AT 12/31/2016 $ 10,000 $ 1,725,059 $ 1,735,059 $ 517,375 $ 2,252,434
Difference $ $ $ $
OUTSTANDING CHECKS CHECK#
15 s - $ 1.12 $ 1.12 20 $ - $ 178.47 s 178.47 25 $ - $ 26.58 $ 26.58 29 $ - $ 19.12 $ 19.12 58 $ - $ 678.00 $ 678.00 63 s - $ 235.00 $ 235.00 79 s - $ 136.08 $ 136.08 121 s - s 204.00 $ 204.00 136 $ - s 664.30 $ 664.30 153 s - $ 660.52 $ 660.52 155 s - $ 100.00 $ 100.00 159 $ - s 341.30 $ 341.30
167070 s - $ 4,871.54 $ 4,871.54 167085 s - s 4,483.31 $ 4,483.31 167094 $ - $ 1,247.05 s 1,247.05 167125 s - $ 1,866.63 $ 1,866.63 167139 $ - s 7,472.40 s 7,472.40
$ - $ 23,185.42 s 23,185.42
CTG MOR - December 2016 lA p3 Attachment
I. D SUMMARY SCHEDULE OF CASH
ENDING BALANCES FOR THE PERIOD: (Provide a copy of monthly account statements for each of the below)
General Account: (CIT Bank): $ 10,000 General Account: (East West Bank): $ 1,725,059
Payroll Account: $ Tax Account: $
*Other Monies: **Petty Cash (from below): ._I $ ____ ...;,1,_03_6__,1
TOTAL CASH AVAILABLE:
11/30/2016 Ending General Ledger at 11130/2016 $ 12/20/2016 Proceeds from miscellaneous asset sales $ 12/21/2016 Proceeds from miscellaneous asset sales $ 12/21/2016 Employee lunch meeting $
TOTAL PETTY CASH TRANSACTIONS:
*Specify the Type of holding (e.g. CD, Savings Account, Investment Security), and the depository name, location & account#
** Attach Exhibit Itemizing all petty cash transactions
1,03611
ID
Creditor, Lessor, Etc.
Blue Wolf Capital, LLC Alta Properties, Inc FFD Trust Alta Properties, Inc
II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS AND OTHER PARTIES TO EXECUTORY CONTRACTS
Post-Petition payments not made
Once* $ 1,750,000 N/A Monthly (2016) $ 126,004
Monthly (last payment, MSJ sold) $ 16,981 Monthly (2017) $ 128,370
*One-time payment made in December to paydown principal of loan facility TOTAL DUE:
III. TAX LIABILITIES
Total Wages Paid: _$.:..._ __ 1.:...,3_44...:.,_21_9_
II Tot::~l D II Amounts Owing Amount Delinquent Amount Due
Federal Withholding $ - State Withholding $ - FICA- Employer's Share $ - FICA- Employee's Share $ - Federal Unemployment $ - Sales and Use $ 673 Real Property $ -
Other: $ - TOTAL: 1$ 67311 $ - I
CTG MOR- December 2016 II - Ill
IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE
*Accounts Payable Accounts Receivable Post-Petition
$ $ $ $ $
30 days or less 31 - 60 days 61 -90 days
91 - 120 days Over 120 days
TOTAL :I$
Name of Carrier
Federal Insurance Co. Affiliated FM Allied World Assuarnce Co One Beacon Ins Co. The Hartford
Coverage
[ Quarterly Period Total
1 Ending (Date) Disbursements Quarterly Fees Date Paid Amount Paid
N/A- No Payments made to US Trustee
$ - $ -
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
* Post-Petition Accounts Payable SHOULD NOT include professionals' fees and expenses which have been incnrred but not yet awarded by the conrt. Post-Petition
Accounts Payable SHOULD include professionals' fees and expenses authorized by Court Order but which remain unpaid as of the close of the period repoti
CTG MOR- December 2016 IV,V,VI
VII SCHEDULE OF COMPENSATION PAID TO INSIDERS
Date of Order Gross Authorizing Compensation Paid
Name oflnsider Compensation *Authorized Gross Compensation During the Month
N/A- no Payments made to Insiders
VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS
Date of Order Authorizing Amount Paid
Name oflnsider Compensation Description During the Month
N/A- no Payments made to Insiders
* Please indicate how compensation was identified in the order (e.g. $1 ,000/week, $2,500/month)
CTG MOR- December 2016 VII- VIII
IX. PROFIT AND LOSS STATEMENT (ACCRUAL BASIS ONLY)
Attachment IX
Gross Sales/Revenue $ 1,906,041 $ 3,465,950
Gross Profit $ 4,586,749 $ 3,688,482
Interest expense (Income) $ (18,627) $ 15,764
Gain on sale ofMSI assets $ (952,560) $ (952,560)
Net income (Loss) $ 4,592,145 $ 2,597,609
CTG MOR- December 2016 IX Attachment
CTG MOR - December 2016
BALANCE SHEET December 31,2016
Cash Restricted cash (Letter of Credit) Accounts Receivables Reserve for Accounts Receivables Unbilled Revenue (A/R) Inventory, Net Prepaid Expenses
Total Current Assets
Net Property, Plant and Equipment
Deposits Other Assets
Post-petition Liabilities Trade Payables Accrued Wages Accrued Payroll taxes Accrued Bonus Accrued Fringes Accrued Vacation Accrued Interest Dip Loan Professional Fees Secured Debt Other
Total Post-Petition Liabilities
Total Pre-Petition Liability
Intercompany Balance
Equity Pre-petition Owners' Equity Post Petition Profit (loss) Direct Charges to Equity
Total Equity
1,460,000 475,359
3,120 2,712,653
4,312,468 92,295 25,413
X Attachment
XL QUESTIONNAIRE
No Yes 1. Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as
have been authorized by the court? If"Yes't, explain below: X
2. Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If "Yes",
~o Yes
explain below: X
3. State what progress was made during the reporting period toward filing a plan of reorganization The Debtor has focused on winding down its business and reducing operations since the commencement of the case. This effort has included selling certain assets, maintaining limited product lines and negotiating with vendors and customers to maximize recovery for all creditors.
4. Describe potential future developments which may have a significant impact on the case: The Debtor will continue to seek opportunities to monetize assets for the benefit of creditors and will continue to negotiate with the DIP lender as required.
5. Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
6. Did you receive any exempt income this month, which is not set forth in the operating report? If No Yes
"Yes", please set forth the amounts and sources of the income below. X
I, David Tiffany, declare under penalty of perjury that I have fully read and understood the foregoing debtor~in possession operating report and that the information contained herein is true and complete to the best of my knowledge.
CTG MOR - December 2016 XI
This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.
June 2012 F 9013-3.1.PROOF.SERVICE DOCS_LA:303000.2 13817/002
PROOF OF SERVICE OF DOCUMENT I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is:
10100 Santa Monica Blvd., 13th Floor, Los Angeles, CA 90067 A true and correct copy of the foregoing document entitled (specify): SUBMISSION OF MONTHLY OPERATING REPORT FOR THE PERIOD DECEMBER 1, 2016 - DECEMBER 31, 2016 will be served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner stated below: 1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Pursuant to controlling General Orders and LBR, the foregoing document will be served by the court via NEF and hyperlink to the document. On (date) January 17, 2017, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following persons are on the Electronic Mail Notice List to receive NEF transmission at the email addresses stated below: Service information continued on attached page 2. SERVED BY UNITED STATES MAIL: On January 17, 2017, I served the following persons and/or entities at the last known addresses in this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States mail, first class, postage prepaid, and addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed. Service information continued on attached page 3. SERVED BY PERSONAL DELIVERY, OVERNIGHT MAIL, FACSIMILE TRANSMISSION OR EMAIL (state method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on (date) January 17, 2017, I served the following persons and/or entities by personal delivery, overnight mail service, or (for those who consented in writing to such service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on, or overnight mail to, the judge will be completed no later than 24 hours after the document is filed. By Federal Express The Honorable Peter H. Carroll United States Bankruptcy Court Central District of California 1415 State Street, Suite 230 / Ctrm. 201 Santa Barbara, CA 93101 Service information continued on attached page I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct. January 17, 2017 Nancy H. Brown /s/ Nancy H. Brown Date Printed Name Signature
Mailing Information for Case 9:16-bk-11912-PC
1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Daniel Denny [email protected] Brian D Fittipaldi [email protected] Michael S Greger [email protected] William W Huckins [email protected], [email protected] Elan S Levey [email protected], [email protected] David W. Meadows [email protected] Samuel A Newman [email protected] Victoria Newmark [email protected] Reed H Olmstead [email protected], [email protected] United States Trustee (ND) [email protected] Alan J Watson [email protected], [email protected]
2. SERVED BY UNITED STATES MAIL:
Channel Technologies Group, LLC Ch 11 Case No.: 9:16-bk-11912-PC
2002 Service List
Debtor Channel Technologies Group, LLC Attn: David Tiffany Chief Restructuring Officer 879 Ward Drive Santa Barbara, CA 93111
Brian Fittipaldi, Esq. United States Trustee 128 East Carrillo Street Santa Barbara, CA 93101
United States Trustee 915 Wilshire Blvd., Suite 1850 Los Angeles, CA 90017
Charles Miller, Member 5916 Carnegie Lane Plano, Texas 75093
CR3 Partners Attn: William Snyder; David Tiffany; Robert Carringer; Michael Nguyen 13727 Noel Road, Suite 200 Dallas, TX 75240
Claims Agent Prime Clerk Attn: Michael J. Frishberg 830 3rd Avenue New York, NY 10022
Bank CIT/One West Gordon Lenarth, Director Treasury Management Group 888 East Walnut Street Pasadena, CA 91101 Email: [email protected]
Government Entities
Loretta E. Lynch U.S. Attorney General U.S. Dept. of Justice 950 Pennsylvania Avenue NW Washington, D.C. 20530-0001
U.S. Dept. of Justice Ben Franklin Station P.O. Box 683 Washington, DC 20044
Eileen M. Decker, U.S. Attorney Dorothy A. Schouten, AUSA, Civil Chief Elan S. Levey, AUSA United States Attorney’s Office Federal Building, Room 7516 300 North Los Angeles Street Los Angeles, CA 90012
Kamala D. Harris State of California Office of the Attorney General 1300 “I” Street Sacramento, CA 95814-2919
Felix E. Leatherwood Supervising Deputy AG Brain D. Wesley, Deputy AG 300 South Spring Street, Suite 1702 Los Angeles, CA 90013
DFAS Attn: Office of the General Counsel 8899 East 56th Street Indianapolis, IN 46349-0160
Internal Revenue Service P.O. Box 7346 Philadelphia, PA 19101-7346
Internal Revenue Service 1332 Anacapa St. Santa Barbara, CA 93101
CA Franchise Tax Board BK Section, MS: A-340 P.O. Box 2952 Sacramento, CA 95812-2952
Littleton Massachusetts Chief Assessor Attn: Katherine Miller 37 Shattuck Street, Room 206 Littleton, MA 01460
Littleton Massachusetts Tax Collector Attn: Deborah Richards 37 Shattuck Street, Room 207 Littleton, MA 01460
CA Franchise Tax Board P.O. Box 942857 Sacramento, CA 95812-2952
Santa Barbara County Tax Collector Attn: Harry E. Hagen 105 East Anapamu Street, Suite 109 Santa Barbara, CA 93102
Employment Development Dept. Bankruptcy Group MIC 92E P.O. Box 826880 Sacramento, CA 94280-0001
State Board of Equalization Special Operations BK Team, MIC: 74 P.O. Box 942879 Sacramento, CA 94279-0074
Massachusetts Dept. of Revenue P.O. Box 9550 Boston, MA 02114-9550
Massachusetts Dept. of Revenue P.O. Box 7010 Boston, MA 02204
TOP 20 LARGEST
BAE Systems Attn: Kim Dean 65 River Road Hudson, NH 03051-5228
SCIENCE APPLICATION INT’L CORP. Attn: Laura Hyden 151 Lafayette Drive, Suite 301 P.O. Box 2501 Oak Ridge, TN 37830
PRECISION SCREW MACHINE PRODUCTS, INC. Attn: Joseph A. Moreshead 30 GOOCH STREET P.O. BOX 1944 BIDDEFORD, ME 04005
ALION Attn: Paul Hendryz 1000 Burr Ridge Parkway Suite 202 Burr Ridge, IL 60527
LEIDOS Attn: Kristin M. Grimes, Legal Dept. 11955 Freedom Drive, 16th Floor Reston, VA 20190
ADVANCED GEOENVIRONMENTAL, INC. 2300 KNOLL DR., UNIT L VENTURA, CA 93003
HERAEUS PRECIOUS METALS NORTH AMERICA Attn: Ryan Hermann 24 UNION HILL ROAD WEST CONSHOHOCKEN, PA 19428
MEL CHEMICALS Attn: Patricia Jones 14271 Collection Center Drive Chicago, IL 60693
CNC MACHINING, INC. Attn: Greg Brous, President/CEO Admin. 510 S. Fairview Avenue Goleta, CA 93117
KAYO DENSHI CO., LTD. Attn: Ms. Chieko Murakami 5-19-13 Suneori-cho Tsurugashima, Saitama 350-2211 Japan
VALUE BASED SOLUTIONS Attn: Roland Ciaramitaro 1651 Crossings Parkway Suites B & C Westlake, OH 44145
ASTRO INDUSTRIES, INC. Attn: A. Hinders 4403 DAYTON XENIA ROAD BEAVERCREEK, OH 45432
CAL WEST ENVIRONMENTAL Attn: Cathy Williams 2386 First Street La Verne, CA 91750-5545
PHOENIX INTL HOLDINGS, INC. Attn: O.Glover/Ken Pollock 9301 Largo Drive West Largo, MD 20774
NRL & ASSOCIATES, INC. Attn: Jeff Rumsey 245 Log Canoe Circle, Suite I Stevensville, MD 21666
MI-TECH METALS, INC. Attn: Kathi Slaughter 4701 Massachusetts Avenue Indianapolis, IN 46218-3144
GRAINGER Attn: Tracy Dillon 101 S. Rice Road Oxnard, CA 93030
MORGAN TECHNICAL CERAMICS Attn: Kay Griffiths Vauxhall Industrial Estate Ruabon Wrexham LL14 6HY United Kingdom
GLENAIR, INC. Attn: Pam Ama-Hawkins 1211 Air Way Glendale, CA 91201
MISSION UNIFORM SERVICE Attn: William Slade 725 E. Montecito Santa Barbara, CA 93102
Secured Creditors
Prepetition Secured Creditor/DIP Lender Blue Wolf Capital Partners Attn: President One Liberty Plaza, 52nd Floor New York, NY 10006
Counsel to Blue Wolf Capital Fund II, L.P. John J. Monaghan Holland & Knight, LLP 10 St. James Avenue, 11th Floor Boston, MA 02116
Interested Parties
Amerisource Funding, Inc. 7225 Langtry Street Houston, TX 77040
Fidus Mezzanine Capital II, L.P. as Collateral Agent 1603 Orrington Avenue, Suite 1005 Evanston, IL 60201
Gladstone Investment Corporation 1521 West Branch Drive, Suite 200 McLean, VA 22102
Wells Fargo Business Credit Government Services Group A Div. of Wells Fargo Bank, N.A. 2010 Corporate Ridge, Suite 900 McLean, VA 22102
Counsel for MSI Transducers Corp. Christopher M. Candon Sheehan Phinney Bass & Green 1000 Elm Street, 17th Floor Manchester, NH 03101
Request for Special Notice
Counsel for Northrop Grumman Corp. Samuel A. Newman Daniel B. Denny Gibson, Dunn & Crutcher LLP 333 South Grand Avenue Los Angeles, CA 90071-3197
Counsel for Attorneys for Creditor BAE Systems Information and Electric Systems Integration, Inc. Robert R. Moore Michael S. Greger William W. Huckins Allen Matkins Three Embarcadero Center, 12th Fl. San Francisco, CA 94111
Counsel for Lockheed Martin Corp. Christopher R. Donoho, III M. Shane Johnson Hogan Lovells US LLP 875 Third Avenue New York, NY 10022
Counsel to Blue Wolf Capital Fund II, L.P. Alan J. Watson Holland & Knight LLP 400 South Hope Street, 8th Floor Los Angeles, CA 90071-2040

Documents

Case 9:16-bk-11912-PC Doc 184 Filed 01/17/17 Entered 01/17