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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 4, 2008
----------------
REUNION INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 01-15739 06-1439715
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(State of Incorporation) (Commission File No.) (IRS Employer ID No.)
11 STANWIX STREET, SUITE 1400
PITTSBURGH, PENNSYLVANIA 15222
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(Address of principal executive offices, including zip code)
(412) 281-2111
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(Registrant's telephone number, including area code)
NOT APPLICABLE
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 8.01 - Other Events
As previously reported, on November 26, 2007 Reunion Industries, Inc.
("Reunion") filed a voluntary petition for relief under Chapter 11 of the
Bankruptcy Code in the United States Bankruptcy Court for the District of
Connecticut, Bridgeport Division (the "Bankruptcy Court"). Reunion continues
to operate as "debtor-in-possession" in that proceeding under the jurisdiction
of the Bankruptcy Court and in accordance with the applicable provisions of
the Bankruptcy Code. Attached to and made a part of this Report is Reunion's
Monthly Operating Report that was filed on March 20, 2008 with the Bankruptcy
Court and the United States Trustee pursuant to Rule 2015 of the Federal Rules
of Bankruptcy Procedure.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned, hereunto duly authorized.
Date: April 4, 2008 REUNION INDUSTRIES, INC.
---------------- (Registrant)
By: /s/ John M. Froehlich
---------------------
John M. Froehlich
Executive Vice President
of Finance and Chief
Financial Officer
- 2 -
UNITED STATES BANKRUPTCY COURT
BRIDGEPORT DIVISION - DISTRICT OF CONNECTICUT
MONTHLY OPERATING REPORT
In re REUNION INDUSTRIES, INC. Case No. 07-50727(AHWS)
------------------------ --------------
Reporting Period: FEB-08
-----------
Federal Tax I.D. # 06-1439715
-----------
CORPORATE MONTHLY OPERATING REPORT
REQUIRED DOCUMENTS Form No. Document Explanation
Attached Attached
----------------------------- -------------- -------- ------------
Schedule of Cash Receipts
and Disbursements MOR-1 YES N/A
Bank Reconciliations MOR-1(CON'T) YES N/A
Statement of Operations MOR-2 YES N/A
Balance Sheet MOR-3 YES N/A
Status of Post-petition Taxes MOR-4 YES N/A
Summary of Unpaid Post-petition
Debts MOR-4 YES N/A
Accounts Receivable MOR-5 YES N/A
Taxes Reconciliation & Aging MOR-5 YES N/A
Payments -Insiders/Professionals MOR-6 YES N/A
Post Petition Status of Secured
Notes, Leases Payable MOR-6 YES N/A
Debtor Questionnaire MOR-7 YES N/A
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.
Authorized Individual \s\ JOHN M. FROEHLICH, CFO Date MAR 20, 2008
-------------------------- ------------
Authorized individual must be an officer, director or shareholder if
debtor is a corporation.
- A-1 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 1/5
CASH RECEIPTS AND DISBURSEMENTS
FEBRUARY 2008
-------------
Cash - beginning of period excluding
lock-boxes $ 455,178
Plus: DIP borrowings 4,150,000
Less: Disbursements
Net payroll 623,373
Payroll taxes 314,227
Steel purchases - CPI 743,842
Titan disbursements 39,369
Other operating 1,658,377
Reorganization:
Professional fees 44,653
U.S. Trustee fees 0
Adequate Protection Payments 100,194
---------
Total 3,524,035
Less: Outstanding checks 616,515
---------
Cash - end of period $ 464,628
=========
NOTE:
Cash above does not include amounts in the lock-box accounts
for CPI and Hanna as these lock-box receipts are sent
directly to Wachovia Bank under the DIP financing facility.
MEMO ONLY ITEMS:
Cash Receipts-book:
Receivable collections $ 4,044,066
Non-receivable receipts 0
Receipts transferred to DIP bank (4,050,935)
----------
MEMO ONLY: Net activity $ (6,869)
==========
DIP bank interest/fees charged directly $ 148,133
==========
- A-2 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 2/5
BANK RECONCILIATION
AS OF FEBRUARY 29, 2008
-----------------------
BANK PNC BANK PNC BANK PNC BANK PNC BANK
TYPE OPERATING PAYROLL HEALTHCARE PENSION
ACCOUNT NUMBER 2161326 2184149 2880718 10382890
Balance per books $456,750 $ 0 $ 0 $ 0
======== ======= ======== ========
BANK BALANCE $625,099 $ 0 $ 49,878 $ 10,172
Deposits in transit 0
Outstanding checks (178,349) - (49,878) (10,172)
Other - explain below See Note 1
-------- -------- -------- --------
Adj. Bank Balance $456,750 $ 0 $ 0 $ 0
======== ======== ======== ========
("Adj. Bank Balance" must equal "Balance per books".)
EXPLANATION OF OTHER:
Note 1: Bank balance includes $595,099 in an overnight deposit account.
- A-3 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 3/5
BANK RECONCILIATION
AS OF FEBRUARY 29, 2008
-----------------------
BANK PNC BANK PNC BANK PNC BANK PNC BANK
TYPE PENSION WORK FUND CPI-OP CPI-PEN
ACCOUNT NUMBER 1011567058 1896806 1898000 1910807
Balance per books $ 0 $ 7,878 $ 0 $ 0
======== ======= ======== ========
BANK BALANCE $ 0 $ 7,878 $ 0 $ 8,375
Deposits in transit 0
Outstanding checks 0 (8,375)
Other - explain below
-------- -------- -------- --------
Adj. Bank Balance $ 0 $ 7,878 $ 0 $ 0
======== ======== ======== ========
("Adj. Bank Balance" must equal "Balance per books".)
- A-4 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 4/5
BANK RECONCILIATION
AS OF FEBRUARY 29, 2008
-----------------------
BANK PNC BANK PNC BANK
TYPE LOCK-BOX CPI-PAY
ACCOUNT NUMBER 1914007 1904706
Balance per books $ 89,654 $ 0
======== ========
BANK BALANCE $ 89,654 $ 0
Deposits in transit
Outstanding checks
Other - explain below
-------- --------
Adj. Bank Balance $ 89,654 $ 0
======== ========
("Adj. Bank Balance" must equal "Balance per books".)
- A-5 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 5/5
BANK RECONCILIATION
AS OF FEBRUARY 29, 2008
-----------------------
BANK FIFTH THIRD FIFTH THIRD FIFTH THIRD
TYPE OPERATING LOCK-BOX PAYROLL
ACCOUNT NUMBER 7512940417 1055011 1065629
Balance per books $ 0 $ 201,974 $ 0
========= ======== =======
BANK BALANCE $ 369,741 $ 201,974 $ 0
Deposits in transit
Outstanding checks (369,741)
Other - explain below
--------- -------- -------
Adj. Bank Balance $ 0 $ 201,974 $ 0
========= ======== =======
("Adj. Bank Balance" must equal "Balance per books".)
- A-6 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 2
INCOME STATEMENT
FOR THE PERIODS INDICATED
-------------------------
($ amounts in thousands)
Post
Month of Petition to
Feb 2008 29-Feb-08
-------- ---------
Net Sales $ 5,234 $ 14,409
Cost of Sales:
Standard Cost 3,855 10,352
Variances & Other 256 690
------ -------
Gross Profit 1,123 3,367
Operating Expenses:
Marketing 116 357
General & Admin 309 1,133
------ -------
Operating Profit 698 1,877
Other Income(Expense) 3 0
Equity in China JV 11 112
Reorganization exp:
Professional fees (45) (66)
U.S. Trustee fees (8)
Other
Adequate Protection Paym't Exp. (100) (300)
Interest Expense - excluding Adequate
Protection Payments (481) (1,661)
------ -------
Profit before tax 86 (46)
Income Tax 0 0
------ -------
Net Income $ 86 $ (46)
====== =======
- A-7 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 3
COMPARITIVE BALANCE SHEET
AS OF THE PERIODS SHOWN
-----------------------
($ amounts in thousands)
26-Nov-07 31-Jan-08 29-Feb-08
--------- --------- ---------
ASSETS:
Cash and Equivalents $ 754 $ 455 $ 757
Net Receivables 7,166 7,090 7,339
Net Inventory 12,369 13,517 12,399
Other Current Assets 3,029 1,726 2,356
------- ------- -------
Current 23,318 22,788 22,851
Net Property 6,300 6,232 6,174
Goodwill 10,994 10,994 10,994
CSV policies 2,200 2,194 2,194
Interest in China JV 3,009 3,110 3,121
------- ------- -------
Total $ 45,821 $ 45,318 $ 45,334
======= ======= =======
LIABILITIES & EQUITY:
Current Maturities of Debt $ 0 $ 0 $ 0
Trade Payables 3,305 3,697 3,900
Accrued Income Taxes 0 11 11
Accrued Interest 544 579 721
Customer Deposits 4,424 3,094 2,243
Accrued Other 4,272 3,290 3,234
------- ------- -------
Current 12,545 10,671 10,109
Secured Debt and interest 53,418 54,494 54,984
Other Liabilities 3,101 2,768 2,770
------- ------- -------
Total Liabilities 69,064 67,933 67,863
Total Equity (23,243) (22,615) (22,529)
------- ------- -------
Total $ 45,821 $ 45,318 $ 45,334
======= ======= =======
- A-8 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 1/4
SUMMARY OF UNPAID POST PETITION TAXES AND DEBTS
AS OF FEBRURAY 29, 2008
-----------------------
($ Amounts in 000's)
TAXES:
------
Beg End
Liability Accrued Paid Liability
--------- -------- ----- ---------
NON-PAYROLL TAXES:
Sales $ 0 $ 0
Excise $ 0 $ 0
Real Property $ 0 $ 0
Personal Property $ 0 $ 0
PAYROLL TAXES - See attached pages 2 to 4
-----------------------------------------
Amount due for payrolls in the last half of
February 2008 - paid in March $ 94
DEBTS:
------
Days Past Due
---------------------------
Current 0-30 31-60 61-90 Over 91 Total
------ ---- ---- ---- ------ ------
Accounts Payable $ 964 $ 483 $ 183 $ 607 $ 1,663 $ 3,900
Wages Payable 290 290
Taxes Payable 0 0
Rent-Building 0 0
Adequate Protection Paymts 0 0
Professional Fees 0 107 107
Amounts due Insiders 15 15 18 48
---- --- --- --- ----- -----
Total $1,269 $ 605 $ 201 $ 607 $ 1,663 $ 4,345
===== === === === ===== =====
Explanations:
Wages represent hourly wages earned in the last half of February that were
paid in March.
Professional fees are due Reid and Riege and are awaiting Bankruptcy Court
approval.
Amounts due insiders represent post petition interest on note and guaranty fees.
- A-9 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 2/4
FIT/FICA TAX PAYMENTS and FUTA 940 TAX PAYMENTS
FEBRUARY 2008
-------------
DATE REFERENCE CPI HANNA
PAID NUMBER CPI HANNA MGT MGT HQ TOTAL
---- ---------- -------- ------- ------- ------- -------- -------
FEB
01 941 00272271 13,206.41 18,238.62 20,106.02 51,551.05
04 0.00
05 941 00147602 4,103.39 19,569.69 23,673.08
06 0.00
07 941 00641452 43,666.41 43,666.41
08 0.00
11 0.00
12 941 00094291 19,533.88 19,533.88
13 0.00
14 0.00
15 0.00
18 0.00
19 0.00
20 941 00124498 4,135.42 20,145.21 13,185.38 18,566.06 20,077.00 76,109.07
21 941 00934904 48,477.27 48,477.27
22 0.00
25 0.00
26 941 00582235 20,149.11 20,149.11
27 0.00
28 0.00
29 0.00
---------- --------- --------- --------- --------- ----------
TOTAL 100,382.49 79,397.89 26,391.79 36,804.68 40,183.02 283,159.87
========= ========= ========= ======== ========= ==========
- A-10 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 3/4
PENNSYLVANIA, NORTH CAROLINA AND OHIO WITHHOLDING TAX
FEBRUARY 2008
-------------
DATE REFERENCE CPI HANNA
PAID NUMBER CPI HANNA MGT MGT HQ TOTAL
---- ---------- -------- ------- ------- ------- -------- -------
FEB
01 OH 6445072 757.31 757.31
02 PA 17682 5,221.46 1,378.48 1,644.38 8,244.32
05 0.00
06 0.00
07 0.00
08 0.00
11 0.00
12 0.00
13 0.00
14 0.00
15 0.00
18 0.00
19 0.00
20 0.00
21 PA 64727 7,036.33 1,644.38 8,680.71
22 0.00
25 0.00
26 0.00
27 0.00
28 0.00
29 0.00
--------- -------- --------- ------- --------- ---------
TOTAL 13,015.10 0.00 1,378.48 0.00 3,288.76 17,682.34
========= ======== ========= ======= ========= =========
- A-11 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 4/4
ILLINOIS, INDIANA, WISCONSIN AND NEW YORK WITHHOLDING TAX
FEBRUARY 2008
-------------
DATE REFERENCE CPI HANNA
PAID NUMBER CPI HANNA MGT MGT HQ TOTAL
---- ---------- -------- ------- ------- ------- -------- -------
FEB
01 0.00
04 0.00
05 0.00
06 IL 17403 1,582.84 1,923.48 3,506.32
07 0.00
08 0.00
11 0.00
12 0.00
13 IL 71983 1,945.66 1,945.66
14 0.00
15 WI 03203608586 635.86 421.53 1,057.39
18 0.00
19 0.00
20 IN 17577 75.07 75.07
21 IL 64619 1,956.15 1,614.29 3,570.44
22 0.00
25 0.00
26 0.00
27 IL 15977 1,955.65 1,955.65
28 0.00
29 WI 04603633374 852.02 422.45 1,274.47
----- -------- ----- -------- ------- ---------
TOTAL 0.00 8,928.18 0.00 4,381.75 75.07 13,385.00
===== ======== ===== ======== ======= =========
- A-12 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 5
ACCOUNTS RECEIVABLE AND TAXES AGING
AS OF FEBRURAY 29, 2008
-----------------------
($ Amounts in 000's)
TRADE ACCOUNTS RECEIVABLE RECONCILIATION:
----------------------------------------
Trade Receivables - beg of month $ 7,164
Plus: Invoiced during the month 4,305
Less: Amounts collected (4,044)
------
Trade Receivables - end of month $ 7,425
======
ACCOUNTS RECEIVABLE AGINGS:
---------------------------
0-30 $ 3,825
31-60 2,725
61-90 737
91+ 138
------
Total trade receivables 7,425
Non-trade receivables 38
Less: Reserve for bad debts (124)
------
Net Receivables - per balance sheet $ 7,339
======
TAXES PAYABLE
-------------
Taxes from late Feb 08 payrolls - paid in March $ 94
===
- A-13 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 6
PAYMENTS TO INSIDERS and PROFESSIONALS and
STATUS OF SECURED NOTES, LEASES AND ADEQUATE PROTECTION PAYMENTS
FEBRUARY 2008
-------------
Of the total disbursements shown on MOR-1, list the amount paid to
insiders and to professionals. For payments to insiders, identify
the type of compensation paid.
PAID THIS TOTAL
TYPE OF PERIOD POST
NAME PAYM'T AMOUNT PETITION
------------------------ ----------- --------- --------
INSIDERS:
---------
Thomas N. Amonett Director fees $ 1,500 $ 4,500
Charles E. Bradley Director fees $ 9,833 $29,499
Thomas L. Cassidy Director fees $ 1,500 $ 4,500
David E. Jackson Director fees $ 1,500 $ 4,500
Joseph C. Lawyer Director fees $ 4,625 $13,875
John G. Poole Director fees $ 5,000 $15,000
Kimball J. Bradley, CEO Salary $32,627 $97,881
John M. Froehlich, CFO Salary $18,255 $54,765
Thomas J. Vogel, VP Salary $ 9,350 $28,050
PROFESSIONALS:
--------------
TOTAL
DATE OF PAID THIS TOTAL INCURRED
COURT AMOUNT PERIOD PAID TO AND
ORDER APPROVED AMOUNT DATE UNPAID
------- -------- --------- ------- ---------
Lincoln International 1/24/08 $65,445 $44,653 $65,445
Reid and Riege, PC 11/28/07 $106,694
POST PETITION STATUS OF SECURED NOTES,LEASES AND ADEQUATE PROTECTION PAYMENTS:
------------------------------------------------------------------------------
MONTHLY PAID POST
INTEREST INTEREST PETITION
PAYM'TS DURING INTEREST
NAME OF CREDITOR DUE MONTH UNPAID
------------------------- --------- --------- ---------
SECURED NOTES:(Principal in default)
ADEQUATE PROTECTION PAYMENTS:
Steel Partners $ 39,181 $ 39,181 $ 0
Paradigm Capital $ 11,031 $ 11,031 $ 0
U.S. Bank, as Trustee $ 50,000 $ 50,000 $ 0
LEASES
------
KWA Properties $ 70,198 $ 70,198 $ 0
IPC REIT - Stanwix Street Assoc $ 9,362 $ 9,362 $ 0
US Bancorp $ 2,890 $ 2,890 $ 0
Total Equipment Co $ 3,197 $ 3,197 $ 0
Hyster Capital $ 2,043 $ 2,043 $ 0
Equipco $ 1,494 $ 1,494 $ 0
- A-14 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 7
DEBTOR QUESTIONNAIRE
FEBRUARY 2008
Must be completed each month. If the answer to any of the questions
is "Yes", provide a detailed explanation of each item.
Attach additional sheets if necessary.
YES NO
--- ---
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE
OF BUSINESS THIS REPORTING PERIOD? X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR
IN POSSESSION ACCOUNT THIS REPORTING PERIOD? X
3. IS THE DEBTOR DELINQUENT IN THE TIMELY FILING OF ANY POST-PETITION
TAX RETURNS? X
4. ARE WORKERS' COMPENSATION, GENERAL LIABLIITY OR OTHER NECESSARY
INSURANCE COVERAGES EXPIRED OR CANCELLED, OR HAS THE DEBOR
RECEIVED NOTICE OF EXPIRATION OR CANCELLATION OF SUCH POLICIES? X
5. IS THE DEBTOR DELINQUENT IN PAYING ANY INSURANCE PREMIUM PAYMENT? X
6. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS
REPORTING PERIOD? X
7. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM
RELATED PARTIES? X
8. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE? X
9. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE? X
10.ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE? X
11.ARE ANY OTHER POSTPETITION TAXES PAST DUE? X
12.HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD? X
13.ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT? X
14.ARE ANY WAGE PAYMENTS PAST DUE? X
15.HAVE ANY POSTPETITION LOANS BEEN RECEIVED BYU THE DEBTOR FROM ANY PARTY? X
16.IS THE DEBTOR DELINQUENT IN PAYING ANY U.S. TRUSTEE FEES? X
17.IS THE DEBTOR DELINQUENT WITH ANY COURT ORDERED PAYMENTS TO ATTORNEYS
OR OTHER PROFESSIONALS? X
18.HAVE THE OWNERS OF SHAREHOLDERS RECEIVED ANY COMPENSATION OUTSTIDE OF
THE NORMAL COURSE OF BUSINESS? X
Item 15. Loans received from Wachovia Bank re: DIP Financing
- A-15 -
19293.000/451396.1