MONTHLY OPERATING REPORT Affidavit/Supplement REQUIRED ...omnimgt.com/cmsvol2/pub_47226/667447_217.pdf · REQUIRED DOCUMENTS. Form No. Attached: Attached: ... Amounts reported should

UNITED STATES BANKRUPTCY COURTDISTRICT OF Delaware

In re SeaStar Holdings, Inc. Case No. 18-10039Reporting Period:_3/1/2018-3/31/2018

MONTHLY OPERATING REPORT File with Court and submit copy to United States Trustee within 20 days after end of month.

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

Document ExplanationREQUIRED DOCUMENTS Form No. Attached AttachedSchedule of Cash Receipts and Disbursements MOR-1 x Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1a x Schedule of Professional Fees Paid MOR-1b x Copies of bank statements x Cash disbursements journals xStatement of Operations MOR-2 xBalance Sheet MOR-3 xStatus of Postpetition Taxes MOR-4 x Copies of IRS Form 6123 or payment receipt x Copies of tax returns filed during reporting period xSummary of Unpaid Postpetition Debts MOR-4 x Listing of aged accounts payable MOR-4 xAccounts Receivable Reconciliation and Aging MOR-5 xDebtor Questionnaire MOR-5 x

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

_______________________________________ ______________________________Signature of Debtor Date

_______________________________________ ______________________________Signature of Joint Debtor Date

_______________________________________ April 20, 2018 Signature of Authorized Individual* Date

Matthew Foster Chief Restructuring Officer 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 debtoris a partnership; a manager or member if debtor is a limited liability company.

Affidavit/Supplement Attached

MOR (04/07)

Case 18-10039-CSS Doc 217 Filed 04/24/18 Page 1 of 14

In re SeaStar Holdings, Inc. Case No. 18-10039Reporting Period: 3/1/2018-3/31/2018

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is thefirst report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column mustequal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIALREPORT (FORM IR-1) . Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journalmust equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CON'T)]

OPERATING ENTITIES CURRENT MONTH CUMULATIVE FILING TO DATESVI, Inc. SPR, LLC Seastar OTHER ACTUAL PROJECTED ACTUAL PROJECTED

CASH BEGINNING OF MONTH 1,542,361 6,319 0 0 1,548,680 674,718 760,724 674,718

RECEIPTS

DAILY CASH SALES 2,126,683 2,126,683 2,192,647 5,735,739 5,575,659

ACH-ICH 976,412 976,412 2,989,482 1,460,000

LOANS AND ADVANCES 0 0 596,226 1,600,000 2,975,035

SALE OF ASSETS 0 0 0 0

OTHER (ATTACH LIST) 0 0 0 0

TRANSFERS (FROM DIP ACCTS) 404,688 69,970 474,658 2,033,072 0

TOTAL RECEIPTS 3,507,783 69,970 0 0 3,577,753 2,788,872 12,358,294 10,010,694

DISBURSEMENTS

Flight Ops (5,229) (5,229) (78) (9,540) (59,895)

MTX (1,000,464) (1,000,464) (363,775) (1,654,605) (1,328,531)

Ramp (17,956) (17,956) (32,229) (71,007) (77,987)

Marketing (3,631) (3,631) (10,320) (21,924) (27,027)

Admin (325,564) (8,267) (333,831) (193,763) (910,255) (539,091)

Insurance (186,993) (186,993) (158,049) (514,172) (526,451)

Professional Services (10,000) (10,000) (12,692) (30,638) (26,713)

ACH-ICH (109,719) (109,719) (317,678) (644,709) (938,434)

Other (2,741) (2,741) (2,898) (67,478) (6,978)

A/C Leases (417,851) (417,851) (283,920) (887,626) (765,320)

Fuel (337,617) (337,617) (226,995) (865,539) (835,730)

Building and Facilities (140,879) (140,879) (98,690) (295,697) (214,936)

Payroll (703,088) (48,754) (751,843) (735,000) (2,257,672) (2,205,000)

Evertec (57,237) (57,237) (95,000) (233,399) (240,000)

Taxes and Fees (722,953) (722,953) (369,054) (1,145,401) (876,499)

OWNER DRAW * 0 0 0 0

TRANSFERS (TO DIP ACCTS) (474,688) (474,688) (2,033,102) 0

PROFESSIONAL FEES (421,818) (421,818) (347,818) (1,313,225) (1,230,545)

UTILITIES 0 (22,500) (25,000)

KEY EXECUTIVE TRAVEL (21,519) (21,519) (27,000) (31,068) (66,000)

U.S. TRUSTEE QUARTERLY FEES 0 0 0 0

COURT COSTS 0 0 0 0

TOTAL DISBURSEMENTS -4,959,948 -57,021 0 0 -5,016,970 -3,274,960 -13,009,555 -9,990,139

NET CASH FLOW -1,452,166 12,949 0 0 -1,439,217 -486,087 -651,261 20,556

(RECEIPTS LESS DISBURSEMENTS)

CASH - END OF MONTH 90,195 19,268 0 0 109,463 188,631 109,463 695,274

* COMPENSATION TO SOLE PROPRIETORS FOR SERVICES RENDERED TO BANKRUPTCY ESTATE

THE FOLLOWING SECTION MUST BE COMPLETED

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)

0

0

TOTAL DISBURSEMENTS

LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS

PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. from escrow accounts)

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES

FORM MOR-1(04/07)


In re SeaStar Holdings, Inc. Case No. 18-10039 Debtor Reporting Period: 3/1/2018-3/31/2018

BANK RECONCILIATIONSContinuation Sheet for MOR-1

A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page.

Seaborne Virgin Islands, Inc Seaborne Puerto Rico LLC Seastar Holdings, Inc. Other# # # #

BALANCE PER BOOKS 90,195 19,268 0

BANK BALANCE 559,264 20,104 0(+) DEPOSITS IN TRANSIT (ATTACH LIST) 0 0(-) OUTSTANDING CHECKS (ATTACH LIST) 400,903 837 0OTHER (ATTACH EXPLANATION) 68,165ADJUSTED BANK BALANCE * 90,195 19,268 0* Adjusted bank balance must equal balance per books

DEPOSITS IN TRANSIT Date Amount Date Amount Date Amount Date Amountn/a

CHECKS OUTSTANDING Ck. # Amount Ch. # Amount Ck. # Amount Ck. # Amount76506 275 1290 3076508 100 1295 34 76528 5,200 1306 172 76552 757 601 76561 82 TOTAL 83776562 2,70876568 30076580 3976585 1976586 6876666 30.00 76655 3,000.00 76695 86.79 76694 119.85 76733 24.63 76740 390.00 76791 1,679.47 76760 3,000.00 76766 144.19 76808 30.00 76809 1,014.71 76830 180.00 76847 100.00 76851 586.00 76852 586.00 76865 6,885.00 76869 40.00 76871 250.00 76932 35.62 76933 19.99 76934 23.14 76935 39.00 76887 36.82 76888 12.00 76889 150.00 76890 103.35 76891 195.00 76893 35.00 76894 755.00 76898 915.00 76900 190.00

FORM MOR-1a(04/07)


76903 7,006.22 76908 75.00 76911 180.00 76915 857.00 76916 1,075.00 76920 400.00 76927 10.61 76929 2,167.83 76931 120.00 76937 120.00 76938 42.73 76884 462.46 76886 5,399.00 76942 1,679.47 76943 3,241.60 76888 18,887.52 76946 1,366.95 76947 210.15 76948 5,944.00 76950 1,739.40 76951 551.93 76952 2,524.36 76944 2,958.82 76953 92.30 76954 163.37 76955 29,667.62 76956 147,721.86 76957 15,208.42 76958 18,250.00 76959 14,423.62 76960 12,924.16 76961 495.58 76962 44.60 76963 36.00 76964 7,156.49 76966 163.36 76967 3,095.00 76968 225.00 76969 3,284.26 76970 2,785.00 76971 245.00 76972 1,622.40 76973 6,300.00 76974 372.00 76975 3,000.00 76976 25,832.60 76978 9,000.00 76979 11,570.00

TOTAL 400,903

ACH 47,680ACH 20,486

TOTAL 68,165

FORM MOR-1a(04/07)



Payor Number Date Fees Expenses Fees ExpensesLandis Rath & Cobb 3/1 - 3/3 67,500 Seaborne Virgin Islands, Inc. WIRE 1-Mar 67,500 0 450,000 0Rust Omni 3/1-3/31 7,267 Seaborne Virgin Islands, Inc. WIRE 1-Mar 7,267 0 17,267 0Seabury Securities 3/1-3/31 Seaborne Virgin Islands, Inc. WIRE 0 0 100,000 0Sonoran Capital 3/1-3/31 25,000 Seaborne Virgin Islands, Inc. WIRE 8-Mar 25,000 0 109,001 0Sonoran Capital 3/1-3/31 9,459 Seaborne Virgin Islands, Inc. WIRE 15-Mar 9,459 9,459.06Landis Rath & Cobb 3/3-3/10 30,000 Seaborne Virgin Islands, Inc. WIRE 8-Mar 30,000 0 0Unsecured Creditors Committee 3/1 - 3/3 40,910 Seaborne Virgin Islands, Inc. WIRE 1-Mar 40,910 0 204,547 0Landis Rath & Cobb 3/11-3/17 30,000 Seaborne Virgin Islands, Inc. WIRE 15-Mar 30,000 0 0Landis Rath & Cobb 3/18 -3/24 30,000 Seaborne Virgin Islands, Inc. WIRE 22-Mar 30,000Landis Rath & Cobb 3/25 - 3/31 30,000 Seaborne Virgin Islands, Inc. WIRE 29-Mar 30,000Unsecured Creditors Committee 3/3 - 3/10 20,455 Seaborne Virgin Islands, Inc. WIRE 8-Mar 20,455 0 0Unsecured Creditors Committee 3/11 -3/17 20,455 Seaborne Virgin Islands, Inc. WIRE 15-Mar 20,455Unsecured Creditors Committee 3/18 -3/24 20,455 Seaborne Virgin Islands, Inc. WIRE 22-Mar 20,455Unsecured Creditors Committee 3/25 - 3/31 20,455 Seaborne Virgin Islands, Inc. WIRE 29-Mar 20,455Blank Rome 3/18 - 3/24 12,530 Seaborne Virgin Islands, Inc. WIRE 22-Mar 12,530 0 329,618 0Walker Nell 3/1-3/31 3,932 Seaborne Virgin Islands, Inc. 15-Mar 3,932 3,932Embark Aviation 3/1-3/31 36,000 Seaborne Virgin Islands, Inc. WIRE 1-Mar 36,000 0 102,793 0Embark Aviation 3/1-3/31 8,128 Seaborne Virgin Islands, Inc. 1-Mar 8128.04 8,128Embark Aviation 4/1-4/30 30,793 Seaborne Virgin Islands, Inc. WIRE 29-Mar 30,793

Total 443,338 421,818 21,519 1,313,225 21,519

Payee Period CoveredCheck Amount Paid

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAIDThis schedule is to include all retained professional payments from case inception to current month.

Amount Approved

Year-To-Date

FORM MOR-1b(04/07)


In re SeaStar Holdings, Inc. Case No. 18-10039Debtor Reporting Period: 3/1/2018-3/31/2018

STATEMENT OF OPERATIONS(Income Statement)

The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it isrealized and expenses when they are incurred, regardless of when cash is actually received or paid.

CumulativeREVENUES Month Filing to DateGross Revenues $ $Less: Returns and AllowancesNet Revenue $ $COST OF GOODS SOLDBeginning InventoryAdd: PurchasesAdd: Cost of Labor See attachedAdd: Other Costs (attach schedule)Less: Ending InventoryCost of Goods SoldGross ProfitOPERATING EXPENSESAdvertisingAuto and Truck ExpenseBad DebtsContributionsEmployee Benefits ProgramsInsider Compensation*InsuranceManagement Fees/BonusesOffice ExpensePension & Profit-Sharing PlansRepairs and MaintenanceRent and Lease ExpenseSalaries/Commissions/FeesSuppliesTaxes - Payroll Taxes - Real EstateTaxes - OtherTravel and EntertainmentUtilitiesOther (attach schedule)Total Operating Expenses Before DepreciationDepreciation/Depletion/AmortizationNet Profit (Loss) Before Other Income & ExpensesOTHER INCOME AND EXPENSESOther Income (attach schedule)Interest ExpenseOther Expense (attach schedule)Net Profit (Loss) Before Reorganization ItemsREORGANIZATION ITEMSProfessional FeesU. S. Trustee Quarterly FeesInterest Earned on Accumulated Cash from Chapter 11 (see continuation sheet)Gain (Loss) from Sale of EquipmentOther Reorganization Expenses (attach schedule)Total Reorganization ExpensesIncome TaxesNet Profit (Loss) $ $

*"Insider" is defined in 11 U.S.C. Section 101(31).

FORM MOR-2(04/07)


In re SeaStar Holdings, Inc. Case No. 18-10039Debtor Reporting Period: 3/1/2018-3/31/2018

BALANCE SHEET

The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.

BOOK VALUE AT END OF BOOK VALUE ON ASSETS CURRENT REPORTING MONTH PETITION DATE

CURRENT ASSETS Unrestricted Cash and EquivalentsRestricted Cash and Cash Equivalents (see continuation sheet) Accounts Receivable (Net)Notes Receivable See attachedInventoriesPrepaid ExpensesProfessional RetainersOther Current Assets (attach schedule)TOTAL CURRENT ASSETS $ $PROPERTY AND EQUIPMENTReal Property and ImprovementsMachinery and EquipmentFurniture, Fixtures and Office EquipmentLeasehold ImprovementsVehiclesLess Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT $ $OTHER ASSETSLoans to Insiders*Other Assets (attach schedule)TOTAL OTHER ASSETS $ $

TOTAL ASSETS $ $

BOOK VALUE AT END OF BOOK VALUE ON LIABILITIES AND OWNER EQUITY CURRENT REPORTING MONTH PETITION DATE

LIABILITIES NOT SUBJECT TO COMPROMISE (Postpetition)Accounts Payable Taxes Payable (refer to FORM MOR-4)Wages PayableNotes PayableRent / Leases - Building/EquipmentSecured Debt / Adequate Protection PaymentsProfessional FeesAmounts Due to Insiders*Other Postpetition Liabilities (attach schedule)TOTAL POSTPETITION LIABILITIES $ $LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition)Secured DebtPriority DebtUnsecured DebtTOTAL PRE-PETITION LIABILITIES $ $

TOTAL LIABILITIES $ $OWNER EQUITYCapital Stock Additional Paid-In Capital Partners' Capital AccountOwner's Equity AccountRetained Earnings - Pre-PetitionRetained Earnings - PostpetitionAdjustments to Owner Equity (attach schedule)Postpetition Contributions (Distributions) (Draws) (attach schedule)NET OWNER EQUITY $ $

TOTAL LIABILITIES AND OWNERS' EQUITY $ $


FORM MOR-3(04/07)



STATUS OF POSTPETITION TAXES

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero.Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes.Attach photocopies of any tax returns filed during the reporting period.

Beginning Amount EndingTax Withheld or Amount Date Check No. Tax

Liability Accrued Paid Paid or EFT LiabilityFederalWithholdingFICA-EmployeeFICA-EmployerUnemploymentIncomeOther:_________________

PR Unemp.Nev Unemp.VI Workers CompPR Workers CompPayroll OtherPayroll LiabilitiesCredit UnionGarnishmentBVI Social Security401k Contribution

Total Federal TaxesState and LocalWithholdingVI WithholdingsPR WitholdingsBVI WithholdingsSalesExciseUnemploymentReal PropertyPersonal PropertyOther:_________________ Total State and LocalTotal Taxes

SUMMARY OF UNPAID POSTPETITION DEBTS

Attach aged listing of accounts payable.

Accounts PayableWages PayableTaxes PayableRent/Leases-BuildingRent/Leases-EquipmentSecured Debt/Adequate Protection PaymentsProfessional FeesAmounts Due to Insiders*Other:__________________________Other:__________________________Total Postpetition Debts

Explain how and when the Debtor intends to pay any past-due postpetition debts.

The debtor is paying the bills when they become due.




ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

Accounts Receivable Reconciliation AmountTotal Accounts Receivable at the beginning of the reporting period+ Amounts billed during the period- Amounts collected during the periodTotal Accounts Receivable at the end of the reporting period

Accounts Receivable Aging0 - 30 days old31 - 60 days old61 - 90 days old91+ days old Total Accounts ReceivableAmount considered uncollectible (Bad Debt)Accounts Receivable (Net)

DEBTOR QUESTIONNAIRE

Must be completed each month Yes No1. Have any assets been sold or transferred outside the normal course of business X this reporting period? If yes, provide an explanation below.2. Have any funds been disbursed from any account other than a debtor in possession X account this reporting period? If yes, provide an explanation below.3. Have all postpetition tax returns been timely filed? If no, provide an explanation X below.4. Are workers compensation, general liability and other necessary insurance X coverages in effect? If no, provide an explanation below.5. Has any bank account been opened during the reporting period? If yes, provide X 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}

{1} Rabobank Account opened for purposes of winding down the estate. No transactions occurred.

FORM MOR-5(04/07)


1:41 PM 04/16/18 Accrual Basis

Seaborne Airlines Combined Summary Balance Sheet

As of March 31, 2018

Seastar Holding, Inc. c/o Portfolio Legal Services, LLC

ASSETS

Current Assets

Checking/Savings 1,396,675

Accounts Receivable -

Other Current Assets 14,177,825

Total Current Assets 15,574,500

Fixed Assets -

Other Assets - TOTAL ASSETS 15,574,500

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable 108,159

Credit Cards -

Other Current Liabilities -

Total Current Liabilities 108,159

Long Term Liabilities -

Total Liabilities 108,159

Equity 15,466,341 TOTAL LIABILITIES & EQUITY 15,574,500

Page 1 of 1



Seaborne Airlines Combined Profit And Loss

March 2018Seastar Holding, Inc. c/o Portfolio Legal Services,

Gross Profit -

Expense

Payroll Expenses -

Flight Operations -

Maintenance -

Passenger Service -

Ramp Operations -

Marketing -

Administration 24,706

Aircraft Lease -

Depreciation -

Total Expense 24,706

Net Ordinary Income (24,706)

Other Income/Expense

Other Income

Interest Income -

Other Income -

Total Other Income -

Other Expense

Interest Expense -

Penalties -

Other Expense -

Total Other Expense -

Net Other Income - Net Income (24,706)

Page 1 of 2



Seaborne Airlines Combined Profit And Loss

March 2018Seas

Gross Profit

Expense

Payroll Expenses

Flight Operations

Maintenance

Passenger Service

Ramp Operations

Marketing

Administration

Aircraft LeaseDepreciation

Total Expense

Net Ordinary Income

Other Income/Expense

Other Income

Interest IncomeOther Income

Total Other Income

Other Expense

Interest Expense

PenaltiesOther Expense

Total Other Expense

Net Other IncomeNet Income

LLC

Page 2 of 2



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Documents

MONTHLY OPERATING REPORT Affidavit/Supplement REQUIRED ...omnimgt.com/cmsvol2/pub_47226/667447_217.pdf · REQUIRED DOCUMENTS. Form No. Attached: Attached: ... Amounts reported should