Case 1810039CSS Doc 297 Filed 07/20/18 Page 1 of 10 UNITED STATES BANKRUPTCY COURT DISTRICT OF Delaware Reporting Period: 6/1/20186/30/2018 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 Explanation REQUIRED DOCUMENTS Form No. Attached Attached Schedule of Cash Receipts and Disbursements MOR1 x Bank Reconciliation (or copies of debtor's bank reconciliations) MOR1a x Schedule of Professional Fees Paid MOR1b x Copies of bank statements x Cash disbursements journals x Statement of Operations MOR2 x Balance Sheet MOR3 x Status of Postpetition Taxes MOR4 x Copies of IRS Form 6123 or payment receipt x Copies of tax returns filed during reporting period x Summary of Unpaid Postpetition Debts MOR4 x Listing of aged accounts payable MOR4 x Accounts Receivable Reconciliation and Aging MOR5 x Debtor Questionnaire MOR5 x Affidavit/Supplement Attached 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. Signature of Debtor Date Signature of Joint Debtor Date July 20, 2018 Signature of Authorized Individual* Date Matthew Foster Printed Name of Authorized Individual Chief Restructuring Officer 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. MOR
Case 1810039CSS Doc 297 Filed 07/20/18 Page 2 of 10 Reporting Period: 6/1/20186/30/2018 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 the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH ACTUAL" column must equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR1 (CON'T)] OPERATING ENTITIES CURRENT MONTH CUMULATIVE FILING TO DATE SBVI SBPR SBSH OTHER ACTUAL PROJECTED ACTUAL PROJECTED CASH BEGINNING OF MONTH 0 0 50,000 0 50,000 415,952 760,724 674,718 RECEIPTS DAILY CASH SALES 0 7,089,702 7,167,883 ACHICH 0 3,601,079 2,060,000 LOANS AND ADVANCES 0 2,325,000 3,800,035 SALE OF ASSETS 0 100,000 0 OTHER (ATTACH LIST) 0 0 0 TRANSFERS (FROM DIP ACCTS) 0 2,365,587 0 0 TOTAL RECEIPTS 0 0 0 0 0 15,481,369 13,027,918 DISBURSEMENTS Flight Ops 0 (17,934) (71,332) MTX 0 (2,140,393) (1,785,864) Ramp 0 (94,364) (110,217) Marketing 0 (30,004) (37,347) Admin 0 (1,225,111) (723,618) Insurance 0 (643,139) (677,724) Professional Services (20,000) (20,000) (20,000) (73,591) (79,405) ACHICH 0 (708,831) (1,243,427) Other 0 (71,250) (10,467) A/C Leases 0 (1,048,465) (1,060,865) Fuel 0 (1,074,723) (1,089,905) Building and Facilities 0 (309,966) (313,625) Payroll 0 (2,928,185) (2,940,000) Evertec 0 (277,976) (335,000) Taxes and Fees 0 (1,482,488) (1,360,843) OWNER DRAW * 0 0 0 TRANSFERS (TO DIP ACCTS) 0 (2,365,632) 0 PROFESSIONAL FEES 0 (1,417,803) (1,364,045) UTILITIES 0 (22,500) (25,000) KEY EXECUTIVE TRAVEL 0 (31,068) (78,000) U.S. TRUSTEE QUARTERLY FEES 0 (109,022) 0 CASH TRANSFER TO BUYER 0 (139,649) 0 TOTAL DISBURSEMENTS 0.00 0 (20,000) 0 (20,000) (20,000) (16,212,092) (13,306,684) NET CASH FLOW 0.00 0 (20,000) 0 (20,000) (20,000) (730,724) (278,766) (RECEIPTS LESS DISBURSEMENTS) CASH END OF MONTH 0.00 0.00 30,000 0 30,000 395,952 30,000 395,952 * 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) 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 0 0 0 0 FORM MOR1
Case 1810039CSS Doc 297 Filed 07/20/18 Page 3 of 10 Debtor Reporting Period: 6/1/20186/30/2018 BANK RECONCILIATIONS Continuation Sheet for MOR1 A bank reconciliation must be included for each bank account. The debtor's bank reconciliation may be substituted for this page. SBVI Winddown, Inc. SBPR Winddown, LLC SBSH Winddown, Inc. Other # # # # BALANCE PER BOOKS 0 0 30,000 BANK BALANCE 0 0 30,000 (+) DEPOSITS IN TRANSIT (ATTACH LIST) 0 0 () OUTSTANDING CHECKS (ATTACH LIST) 0 0 0 OTHER (ATTACH EXPLANATION) 0 ADJUSTED BANK BALANCE * 0 0 30,000 * Adjusted bank balance must equal balance per books DEPOSITS IN TRANSIT Date Amount Date Amount Date Amount Date Amount n/a CHECKS OUTSTANDING Ck. # Amount Ch. # Amount Ck. # Amount Ck. # Amount FORM MOR1a
Case 1810039CSS Doc 297 Filed 07/20/18 Page 4 of 10 Debtor Reporting Period: 6/1/20186/30/ SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID This schedule is to include all retained professional payments from case inception to current month. Amount Check Amount Paid YearToDate Payee Period Covered Approved Payor Number Date Fees Expenses Fees Expenses Landis Rath & Cobb SBVI Winddown, Inc. WIRE 0 0 487,500 0 Rust Omni SBVI Winddown, Inc. WIRE 0 0 22,267 0 Sonoran Capital SBVI Winddown, Inc. WIRE 0 0 Sonoran Capital Wind down SBVI Winddown, Inc. WIRE 164,001 16,537 Unsecured Creditors Committee SBVI Winddown, Inc. WIRE 0 204,547 0 Blank Rome SBVI Winddown, Inc. WIRE 0 329,618 0 Seabury Securities SBVI Winddown, Inc. WIRE 0 0 100,000 0 Embark Aviation SBVI Winddown, Inc. WIRE 0 102,793 8,128 Total 0 0 0 1,410,725 24,665 FORM MOR1b
Case 1810039CSS Doc 297 Filed 07/20/18 Page 5 of 10 Debtor Reporting Period: 6/1/20186/30/2018 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 is realized and expenses when they are incurred, regardless of when cash is actually received or paid. Cumulative REVENUES Month Filing to Date Gross Revenues $ $ Less: Returns and Allowances Net Revenue $ $ COST OF GOODS SOLD Beginning Inventory Add: Purchases Add: Cost of Labor See attached Add: Other Costs (attach schedule) Less: Ending Inventory Cost of Goods Sold Gross Profit OPERATING EXPENSES Advertising Auto and Truck Expense Bad Debts Contributions Employee Benefits Programs Insider Compensation* Insurance Management Fees/Bonuses Office Expense Pension & ProfitSharing Plans Repairs and Maintenance Rent and Lease Expense Salaries/Commissions/Fees Supplies Taxes Payroll Taxes Real Estate Taxes Other Travel and Entertainment Utilities Other (attach schedule) Total Operating Expenses Before Depreciation Depreciation/Depletion/Amortization Net Profit (Loss) Before Other Income & Expenses OTHER INCOME AND EXPENSES Other Income (attach schedule) Interest Expense Other Expense (attach schedule) Net Profit (Loss) Before Reorganization Items REORGANIZATION ITEMS Professional Fees U. S. Trustee Quarterly Fees Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet) Gain (Loss) from Sale of Equipment Other Reorganization Expenses (attach schedule) Total Reorganization Expenses Income Taxes Net Profit (Loss) $ $ *"Insider" is defined in 11 U.S.C. Section 101(31). FORM MOR2
Case 1810039CSS Doc 297 Filed 07/20/18 Page 6 of 10 Debtor Reporting Period: 6/1/20186/30/2018 BALANCE SHEET The Balance Sheet is to be completed on an accrual basis only. Prepetition 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 Equivalents Restricted Cash and Cash Equivalents (see continuation sheet) Accounts Receivable (Net) Notes Receivable See attached Inventories Prepaid Expenses Professional Retainers Other Current Assets (attach schedule) TOTAL CURRENT ASSETS $ $ PROPERTY AND EQUIPMENT Real Property and Improvements Machinery and Equipment Furniture, Fixtures and Office Equipment Leasehold Improvements Vehicles Less Accumulated Depreciation TOTAL PROPERTY & EQUIPMENT $ $ OTHER ASSETS Loans 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 MOR4) Wages Payable Notes Payable Rent / Leases Building/Equipment Secured Debt / Adequate Protection Payments Professional Fees Amounts Due to Insiders* Other Postpetition Liabilities (attach schedule) TOTAL POSTPETITION LIABILITIES $ $ LIABILITIES SUBJECT TO COMPROMISE (PrePetition) Secured Debt Priority Debt Unsecured Debt TOTAL PREPETITION LIABILITIES $ $ TOTAL LIABILITIES $ $ OWNER EQUITY Capital Stock Additional PaidIn Capital Partners' Capital Account Owner's Equity Account Retained Earnings PrePetition Retained Earnings Postpetition Adjustments to Owner Equity (attach schedule) Postpetition Contributions (Distributions) (Draws) (attach schedule) NET OWNER EQUITY $ $ TOTAL LIABILITIES AND OWNERS' EQUITY $ $ *"Insider" is defined in 11 U.S.C. Section 101(31). FORM MOR3
Case 1810039CSS Doc 297 Filed 07/20/18 Page 7 of 10 Debtor Reporting Period: 6/1/20186/30/2018 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. Federal Withholding FICAEmployee FICAEmployer Unemployment Income Other: PR Unemp. Nev Unemp. VI Workers Comp PR Workers Comp Payroll Other Payroll Liabilities Credit Union Garnishment BVI Social Security 401k Contribution Beginning Amount Ending Tax Withheld or Amount Date Check No. Tax Liability Accrued Paid Paid or EFT Liability Total Federal Taxes State and Local Withholding VI Withholdings PR Witholdings BVI Withholdings Sales Excise Unemployment Real Property Personal Property Other: Total State and Local Total Taxes SUMMARY OF UNPAID POSTPETITION DEBTS Attach aged listing of accounts payable. Accounts Payable Wages Payable Taxes Payable Rent/LeasesBuilding Rent/LeasesEquipment Secured Debt/Adequate Protection Payments Professional Fees Amounts Due to Insiders* Other: Other: Total Postpetition Debts Number of Days Past Due Current 030 3160 6190 Over 90 Total Explain how and when the Debtor intends to pay any pastdue postpetition debts. The debtor is paying the bills when they become due. *"Insider" is defined in 11 U.S.C. Section 101(31).
Case 1810039CSS Doc 297 Filed 07/20/18 Page 8 of 10 Debtor Reporting Period: 6/1/20186/30/2018 ACCOUNTS RECEIVABLE RECONCILIATION AND AGING Accounts Receivable Reconciliation Amount Total Accounts Receivable at the beginning of the reporting period + Amounts billed during the period Amounts collected during the period Total Accounts Receivable at the end of the reporting period Accounts Receivable Aging Amount 0 30 days old 31 60 days old 61 90 days old 91+ days old {1} Total Accounts Receivable Amount considered uncollectible (Bad Debt) Accounts Receivable (Net) DEBTOR QUESTIONNAIRE Must be completed each month Yes No 1. Have any assets been sold or transferred outside the normal course of business X [1] 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 40013. {1} The debtors sold substantially all of their assets on April 20, 2018 FORM MOR5
5:03 PM 05/14/18 Accrual Basis Case 1810039CSS Seaborne Doc 297 Airlines Filed 07/20/18 Page 9 of 10 Combined Summary Balance Sheet June 2018 SBVI Winddown, Inc. Balance Sheet 6/30 ASSETS Current Assets Checking/Savings Accounts Receivable Other Current Assets Total Current Assets Fixed Assets Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 15,996,139 Credit Cards 66,532 Other Current Liabilities 7,208,302 Total Current Liabilities 23,270,973 Long Term Liabilities Total Liabilities 23,270,973 Equity (23,270,973) TOTAL LIABILITIES & EQUITY Page 1 of 6
5:03 PM 05/14/18 Accrual Basis SBVI Winddown, Inc. Case 1810039CSS Seaborne Doc 297 Airlines Filed 07/20/18 Page 10 of 10 Combined Profit And Loss June 2018 June P&L Ordinary Income/Expense Total Income Cost of Goods Sold 5000 Cost of Goods Sold Total COGS Gross Profit Expense 6560 Payroll Expenses 81000 Flight Operations 81010 Aircraft Supplies 81040 Drug Testing 81050 Dues & Subscriptions 81060 Freight & Postage Total 81070 Fuel & Oil Total 81080 Insurance Total 81110 Wages & Fringe Total 81115 Contract Labor 81120 Stationary & Forms 81121 Office Supplies Total 81130 Training T & E Total 81140 T & E 81150 Uniforms Total 81155 Passenger Charge Total 81160 Landing Fees Total 81000 Flight Operations Total 82000 Maintenance Total 83000 Passenger Service Total 84000 Ramp Operations Total 86000 Marketing Total 87000 Administration Total 89000 Aircraft Lease 90000 Depreciation 66901 *Reconciliation Discrepancies Total Expense Net Ordinary Income Other Income/Expense Total Other Income Total Other Expense Balance Sheet Adjustment from Sale of Assets Net Other Income Net Income Page 4 of 6