Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 1 of 19
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 2 of 19 OPERATING STATEMENT (P&L) NOTE: Allocation of Costs between Debtors have not been Analyzed. Current Month Total Since Filing Total Revenue / Sales 0 3,529,386 Cost of Sales 0 2,243,299 GROSS PROFIT 0 1,286,087 EXPENSES: Officer Compensation 0 256,905 Salary Expenses other Employees 3,283 820,378 Employee Benefits & Pensions 1,578 266,872 Payroll Taxes 25 12,194 Other Taxes 0 666 Interim Personnel and Purchased Services 91,620 350,215 Interest Expense 0 768,236 Insurance 4,419 34,015 Automobile and Truck Expense 0 35,781 Utilities (gas, electric, phone) 0 137,127 Depreciation 0 1,619,338 Travel and Entertainment 0 16,192 Repairs and Maintenance 0 342,377 Rent Expense 0 0 Supplies, Office Expense, etc. 0 13,454 Other: Miscellaneous Expenses 267 274,382 Other Specify 0 0 TOTAL EXPENSES 101,193 4,948,132 NET OPERATING PROFIT / (LOSS) (101,193) (3,662,045) Add: Non Operating Income: Interest Income 0 46,124 Other Income 0 0 Less: Non Operating Expenses: Professional Fees (162,111) (4,323,112) Loss on Sale of Assets and Account Changes (A) 0 (9,201,790) NET INCOME / (LOSS (263,304) (17,140,823) (A) Includes Loss on Sale of Assets and Changes to Claim and Account Balances. FORM 2
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 3 of 19 BALANCE SHEET Current Month Prior Month At Filing ASSETS (A): Cash 3,210,434 3,412,542 181,166 Inventory 0 0 549,055 Accounts Receivables 1,000,000 1,000,000 862,457 Insider Receivables 0 0 0 Land, Buildings, Improvements and Assets 0 0 for Potential Buildout of Facilities 0 0 5,450,601 Network and Equipment 20,000 68,798 56,388,198 Accumulated Depreciation 0 0 (18,727,919) Other: Other Current Assets 1,761,337 1,760,984 2,359,474 Other: Other Long Term Assets 30,140 30,140 8,757,478 Interco Balances and Investment 8,467,962 8,448,456 10,683,528 TOTAL ASSETS 14,489,873 14,720,920 66,504,038 LIABILIITIES (A): Postpetition Liabilities: Accounts Payable 521,167 368,376 0 Rent and Lease Payable 0 0 613,638 Wages and Salaries 82,625 82,606 0 Taxes Payable 0 0 0 Other: Other Current Liabs (B) 1,438,490 1,518,464 0 Other: Deferred Revenue 0 0 10,997,032 Other: Deferred Income Taxes 0 0 2,454 TOTAL Postpetition Liab. 2,042,282 1,969,445 11,613,125 Secured Liabilities: Subject to Postpetition Collateral or Financing Order 0 0 0 All Other Secured Liab. 0 40,580 25,207,299 TOTAL Secured Liab. 0 40,580 25,207,300 Prepetition Liabilities: Taxes & Other Priority Liab. 54,692 54,692 736,310 Unsecured Liabilities 3,628,639 3,628,639 3,042,220 Other: Intercompany Balances (B) 0 0 0 TOTAL Prepetition Liab. 3,683,331 3,683,331 3,778,530 EQUITY (A): Owners Capital 15,197,000 15,197,000 15,197,000 Retained Earnings Pre Pet. 10,708,084 10,708,084 10,708,084 Retained Earnings Post Pet. (17,140,823) (16,877,519) 0 TOTAL Equity 8,764,261 9,027,564 25,905,084 TOTAL LIABILITIES AND EQUITY 14,489,873 14,720,920 66,504,038 (A) Intercompany Transactions and Allocation of Costs between Entities still to be Analyzed. (B) Other Accrued Liabilities primarily relates to retained bankruptcy professionals. FORM 3
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 4 of 19 SUMMARY OF OPERATIONS Schedule of Postpetition Taxes Payable Beginning Balance Accrued / Withheld Payments / Deposits Ending Accrual (Prepaid) Balance Income Taxes Withheld: Federal 0 11,075 11,075 0 State 0 1,442 1,442 0 Local 0 0 0 0 FICA Withheld 0 954 954 0 Employers FICA 0 667 667 0 Unemployment Tax: Federal 0 0 0 0 State 0 4 4 0 Property Taxes 0 0 0 0 Workers' Compensation 1,324 2,650 7,948 (3,974) Other 0 0 0 0 TOTALS 1,324 16,792 22,090 (3,974) AGING OF ACCOUNTS RECEIVABLE AND POSTPETITION ACCOUNTS PAYABLE Age in Days 0 30 30 60 Over 60 Post Petition Accounts Payable 521,167 0 0 Accounts Receivable 0 0 1,000,000 Accounts Payable represent primarily amounts due the various restructuring professionals. Describe events or factors occurring during this reporting period materially affecting operations and formulation of a Plan of Reorganization: FORM 4
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 5 of 19 MONTHLY CASH STATEMENT Cash Activity Analysis (Book Basis Ties to G/L): Comerica Checking Account Money Market Account Bank of America Checking Bank of America Minimum Creditors Return Bank of America Professional Fee Account Bank of America Potential Secured Claims A. Beginning Balance 362,894 110 1,206,003 500,000 1,150,000 193,536 B. Receipts 15,072 (Attach separate schedule) C. Transfers In 90,251 (from other accounts) D. Balance Available 362,894 110 1,311,327 500,000 1,150,000 193,536 (A + B + C) E. Less Disbursements (68,294) (148,886) (Attach separate schedule) F. Transfers Out (90,251) (to other accounts) G. ENDING BALANCE 294,600 110 1,162,441 500,000 1,059,749 193,536 (D E F) (PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH ACCOUNT) Comerica Bank Accounts: 1. Depository Name & Location Comerica Bank, 2615 Lake Lansing Rd, East Lansing, MI 2. Checking Account Number xxxx 8520 3. Creditors Minimum Return A/C # xxxx 8538 Bank of America Bank Accounts: 1. Depository Name & Location Bank of America, 1390 Lake Lansing Rd, East Lansing, MI 2. Checking Account Number xxxx 6158 3. Creditors Minimum Return A/C # xxxx 2473 4. Professional Fees A/C # xxxx 2512 5. Potential Secured Claims A/C # xxxx 2431 Other monies on hand (specify type and location) i.e., CD's, bonds, etc.): None Date: December 27, 2016 Great Lakes Comnet, Inc. Debtor In Possession FORM 5
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 6 of 19 BANK RECONCILIATION Cash Activity Analysis (Book Basis Ties to G/L): Comerica Checking Account Money Market Account Bank of America Checking A. Ending Balance per Book 294,600 110 1,162,441 B. Outstanding Checks 6,007 18,507 C. Deposits in Transit D. Ending Balance per Bank 300,607 110 1,180,948 Bank of America Minimum Creditors Return Bank of America Professional Fee Account Bank of America Potential Secured Claims A. Ending Balance per Book 500,000 1,059,749 193,536 B. Outstanding Checks C. Deposits in Transit D. Ending Balance per Bank 500,000 1,059,749 193,536 NOTE: Bank Statement Information Available Upon Request. SUMMARY OF ENDING BALANCES IN ALL GLC AND COMLINK CASH ACCOUNTS: GLC Cash: Comerica Checking Account 294,600 Money Market Account 110 Bank of America Checking 1,162,441 Bank of America Minimum Creditors Return 500,000 Bank of America Professional Fee Account 1,059,749 Bank of America Potential Secured Claims 193,536 Total GLC Cash 3,210,435 Comlink Cash: Comerica Checking Account 1,629,916 Bank of America Checking 44,528 1,674,444 Total GLC and Comlink Cash 4,884,879
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 7 of 19 Comerica Account: Cash Book Basis Disbursements and Receipts Cash Activity Analysis (Book Basis Ties to G/L): Date Vendor/Customer Code Journal Source Amount Disbursements: 9/1/2016 To Everstream for July Deposits CD-000605 A/P 2,379.31 9/7/2016 00BCBSHE W02468 MC-000924 G/L 542.15 9/9/2016 To Record Payroll PPE 09/03/20 PR-000618 G/L 20,317.08 9/9/2016 To Record Payroll Tax Deposits PR-000619 G/L 13,952.84 9/13/2016 00BCBSHE W02470 MC-000926 G/L 602.41 9/13/2016 00PAY W02471 MC-000926 G/L 174.01 9/14/2016 Bank Service Fees BR-000118 G/L 267.07 9/14/2016 00BCBSHE W02472 MC-000927 G/L 80.30 9/16/2016 00PAY W02473 MC-000928 G/L 338.00 9/20/2016 To Everstream for August Deposits CD-000609 A/P 27,542.37 9/20/2016 00S46050U W02469 MC-000925 G/L 852.36 9/21/2016 00BCBSHE W02474 MC-000929 G/L 15.16 9/23/2016 00PAY W02475 MC-000930 G/L 183.77 9/23/2016 To Record Payroll PPE 09/17/20 PR-000620 G/L 780.02 9/23/2016 To Record Payroll Tax Deposits PR-000621 G/L 188.83 9/28/2016 00BCBSHE W02476 MC-000931 G/L 78.40 Total Disbursements 68,294.08
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 8 of 19 Bank of America Checking Account: Cash Book Basis Disbursements and Receipts Cash Activity Analysis (Book Basis Ties to G/L): Date Vendor/Customer Code Journal Source Amount Disbursements: 9/1/2016 ALIX PARTNERS LLP 042231 CD-000604 A/P 20,162.06 9/1/2016 COOLEY LLP 042232 CD-000604 A/P 9,497.50 9/1/2016 JAFFE RAITT HEUER & WEISS P.C. CD-000604 A/P 6,554.90 9/1/2016 MILLER CANFIELD PADDOCK AND ST CD-000604 A/P 51,747.33 9/1/2016 O'KEEFE AND ASSOCIATES CONSULT CD-000604 A/P 2,289.60 9/8/2016 SCHREUR FINANCIAL ADVISORY SER CD-000606 A/P 6,997.20 9/15/2016 SCHREUR FINANCIAL ADVISORY SER CD-000607 A/P 9,539.04 9/19/2016 US TRUSTEE 042238 CD-000608 A/P 19,600.00 9/20/2016 DAVID C. SCHROEDER 042239 CD-000610 A/P 400.00 9/20/2016 DAVE FOX 042240 CD-000610 A/P 400.00 9/20/2016 JANET BEILFUSS 042241 CD-000610 A/P 400.00 9/20/2016 LESLIE JENKINS 042242 CD-000610 A/P 400.00 9/20/2016 RANDY K FLETCHER 042243 CD-000610 A/P 400.00 9/20/2016 JOHN C. SUMMERSETT 042244 CD-000610 A/P 400.00 9/20/2016 SCHREUR FINANCIAL ADVISORY SER CD-000610 A/P 9,967.44 9/20/2016 SIDNEY S. SHANK 042246 CD-000610 A/P 400.00 9/20/2016 TODD R ROESLER 042247 CD-000610 A/P 400.00 9/28/2016 SCHREUR FINANCIAL ADVISORY SER CD-000611 A/P 9,139.20 9/30/2016 CLINTON COUNTY TELEPHONE CO. 0 CD-000612 A/P 192.15 Total Disbursements 148,886.42 Receipts: 9/2/2016 CCTC Reimbursement of Payroll Transfer BR-000119 A/P 12,153.00 9/13/2016 Guardian Insurance Refund Check BR-000119 A/P 2,727.16 9/30/2016 CCTC check sent by customer to GLC. Check #612 above was used to send cash to CCTC. CR-001166 A/P 192.15 Total Receipts 15,072.31 Transfers In: 9/1/2016 Transfer from Professional Fee Account to cover Professional Fees Paid During Month JE-160901 A/P 90,251.39 Total Transfers In 90,251.39
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 9 of 19 Bank of America Professional Fees Account: Cash Book Basis Disbursements and Receipts Cash Activity Analysis (Book Basis Ties to G/L): Date Vendor/Customer Code Journal Source Amount Transfers Out: 9/1/2016 Transfer to Checking Account to cover Prof Fees Paid JE-160901 90,251.39 Total Transfers Out 90,251.39
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 10 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: John C. Summersett Shareholder X Officer X Director Insider Detailed Description of Duties: CEO Current Compensation Paid: Weekly or Monthly (A) 32,000 Current Benefits Paid: Health Insurance 382 Life Insurance 92 Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits 474 Current Other Payments Paid: Rent Paid Loans Other (Fees for Directors' Meetings) 400 Other Other Total Other Payments 400 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 32,874 Date: December 27, 2016 (A) Represents total of all payments during current month. FORM 6
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 11 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: Schreur Financial Advisory Services, LLC Shareholder Officer Director X Insider Detailed Description of Duties: Provider of Interim CFO Services Current Compensation Paid: Weekly or Monthly (A) Current Benefits Paid: Health Insurance Life Insurance Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits Current Other Payments Paid: Rent Paid Loans Other (Weekly Fees) 35,643 Total Other Payments 35,643 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 35,643 Date: December 27, 2016 FORM 6 (A) Represents total of all payments during current month.
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 12 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: Randy K. Fletcher Shareholder Officer X Director Insider Detailed Description of Duties: Director, Chairman of Board Current Compensation Paid: Weekly or Monthly (A) Current Benefits Paid: Health Insurance Life Insurance Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits Current Other Payments Paid: Rent Paid Loans Other (Fees for Directors' Meetings) 400 Total Other Payments 400 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 400 Date: December 27, 2016 FORM 6 (A) Represents total of all payments during current month.
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 13 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: Janet Beilfuss Shareholder Officer X Director Insider Detailed Description of Duties: Director, Secretary Current Compensation Paid: Weekly or Monthly (A) Current Benefits Paid: Health Insurance Life Insurance Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits Current Other Payments Paid: Rent Paid Loans Other (Fees for Directors' Meetings) 400 Total Other Payments 400 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 400 Date: December 27, 2016 FORM 6 (A) Represents total of all payments during current month.
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 14 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: Todd R. Roesler Shareholder Officer X Director Insider Detailed Description of Duties: Director, Treasurer Current Compensation Paid: Weekly or Monthly (A) Current Benefits Paid: Health Insurance Life Insurance Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits Current Other Payments Paid: Rent Paid Loans Other (Fees for Directors' Meetings) 400 Total Other Payments 400 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 400 Date: December 27, 2016 FORM 6 (A) Represents total of all payments during current month.
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 15 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: Sidney S. Shank Shareholder Officer X Director Insider Detailed Description of Duties: Director Current Compensation Paid: Weekly or Monthly (A) Current Benefits Paid: Health Insurance Life Insurance Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits Current Other Payments Paid: Rent Paid Loans Other (Fees for Directors' Meetings) 400 Total Other Payments 400 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 400 Date: December 27, 2016 FORM 6 (A) Represents total of all payments during current month.
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 16 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: David C. Schroeder Shareholder Officer X Director Insider Detailed Description of Duties: Director Current Compensation Paid: Weekly or Monthly (A) Current Benefits Paid: Health Insurance Life Insurance Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits Current Other Payments Paid: Rent Paid Loans Other (Fees for Directors' Meetings) 400 Total Other Payments 400 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 400 Date: December 27, 2016 FORM 6 (A) Represents total of all payments during current month.
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 17 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: David Fox Shareholder Officer X Director Insider Detailed Description of Duties: Director Current Compensation Paid: Weekly or Monthly (A) Current Benefits Paid: Health Insurance Life Insurance Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits Current Other Payments Paid: Rent Paid Loans Other (Fees for Directors' Meetings) 400 Total Other Payments 400 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 400 Date: December 27, 2016 FORM 6 (A) Represents total of all payments during current month.
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 18 of 19 MONTHLY STATEMENT OF INSIDER COMPENSATION / PAYMENTS The following information is to be provided for each shareholder, officer, director, manager, insider or owner that is employed by the debtor in possession. Attach additional pages if necessary. Name: Leslie Jenkins Shareholder Officer X Director Insider Detailed Description of Duties: Director Current Compensation Paid: Weekly or Monthly (A) Current Benefits Paid: Health Insurance Life Insurance Retirement Company Vehicle Entertainment Travel Other Benefits Total Benefits Current Other Payments Paid: Rent Paid Loans Other (Fees for Directors' Meetings) 400 Total Other Payments 400 CURRENT TOAL OF ALL PAYMENTS Weekly or Monthly 400 Date: December 27, 2016 FORM 6 (A) Represents total of all payments during current month.
Case:16-00290-jtg Doc #:656 Filed: 01/03/17 Page 19 of 19 SCHEDULE OF IN FORCE INSURANCE INSURANCE TYPE CARRIER EXPIRATION DATE Commercial Umbrella Insurance Directors, Officers and Managers Insurance All Risk Blanket Insurance Workers Comp Insurance Federated Rural Electric Insurance Exchange Federated Rural Electric Insurance Exchange Federated Rural Electric Insurance Exchange Federated Rural Electric Insurance Exchange November 18, 2016 November 18, 2016 November 18, 2016 November 18, 2016 FORM 7