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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) July 9, 2008
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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 July 1,2008 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: July 9, 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: MAY 2008
-----------
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 JUNE 26, 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
MAY 2008
--------
Cash - beginning of period excluding $ 51,452,476
Plus: Collections on receivables 1,965,488
Plus: Miscellaneous/Titan receipts 108,050
Less: Disbursements
Net payroll 415,032
Payroll taxes 191,414
Titan disbursements 41,649
Other operating 1,340,212
Secured debt payments 34,000,000
Reorganization:
Professional fees 1,053,361
U.S. Trustee fees 0
----------
Total 37,041,668
Less: Change in outstanding checks 81,794
----------
Cash - end of period $ 16,402,552
==========
NOTE:
Professional fees represent final payment to Lincoln
International related to the sale of the Company's
CP Industries division and legal payments to the
firm representing the Company in bankruptcy.
- A-2 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 2/5
BANK RECONCILIATION
AS OF MAY 31, 2008
------------------
BANK PNC BANK PNC BANK PNC BANK PNC BANK
TYPE OPERATING PAYROLL HEALTHCARE PENSION
ACCOUNT NUMBER 2161326 2184149 2880718 10382890
Balance per books $ 12,598 $ 0 $ 0 $ 0
======== ======= ======== ========
BANK BALANCE $109,588 $ 0 $ 67,403 $327,832
Deposits in transit 0
Outstanding checks ( 96,990) - (67,403) (327,832)
Other - explain below See Note 1
-------- -------- -------- --------
Adj. Bank Balance $ 12,598 $ 0 $ 0 $ 0
======== ======== ======== ========
("Adj. Bank Balance" must equal "Balance per books".)
EXPLANATION OF OTHER:
Note 1: Bank balance includes $69,588 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 MAY 31, 2008
------------------
BANK PNC BANK PNC BANK PNC BANK
TYPE PENSION WORK FUND CPI-PEN
ACCOUNT NUMBER 1011567058 1896806 1898000
Balance per books $ 0 $ 0 $ 0
======== ======= ========
BANK BALANCE $ 8,012 $ 3,673 $ 1,093
Deposits in transit 0
Outstanding checks (8,012) (3,673) (1,093)
Other - explain below
-------- -------- --------
Adj. Bank Balance $ 0 $ 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 MAY 31, 2008
--------------------
BANK PNC BANK PNC BANK PNC BANK
TYPE Cash Collat'l Carve-Out Segregated
ACCOUNT NUMBER 1019820572 1019820847 1019821057
Balance per books $15,296,472 $ 250,000 $ 250,000
=========== ========= =========
BANK BALANCE $15,296,472 $ 250,000 $ 250,000
Deposits in transit
Outstanding checks
Other - explain below
----------- --------- ---------
Adj. Bank Balance $15,296,472 $ 250,000 $ 250,000
=========== ========= =========
("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 MAY 31, 2008
--------------------
BANK FIFTH THIRD FIFTH THIRD Chase Chase
TYPE OPERATING PAYROLL Operating Royalty
ACCOUNT NUMBER 7512940417 1065629 1690008469 1820765236
Balance per books $ 377,303 $ 240,127 $ 71,221 $ 126,841
========= ======== ======= ========
BANK BALANCE $ 561,638 $ 240,127 $ 81,955 $ 132,623
Deposits in transit
Outstanding checks (184,335) (10,734) ( 5,782)
Other - explain below
--------- -------- ------- --------
Adj. Bank Balance $ 377,303 $ 240,127 $ 71,221 $ 126,841
========= ======== ======= ========
("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
May 2008 31-May-08
-------- ---------
Net Sales $ 1,717 $ 23,345
Cost of Sales:
Standard Cost 1,291 17,121
Variances & Other 229 1,335
------ -------
Gross Profit 197 4,889
Operating Expenses:
Marketing 57 719
General & Admin 261 2,073
------ -------
Operating Profit (121) 2,097
Other Income(Expense) (2,607) 40,130
Equity in China JV 106 277
Reorganization exp:
Professional fees 0 (187)
U.S. Trustee fees 0 (21)
Other
Adequate Protection Paym't Exp. 0 (450)
Interest Expense - excluding Adequate
Protection Payments (317) (3,677)
------ -------
Profit before tax (2,939) 38,169
Income Tax 0 0
------ -------
Net Income $ (2,939) $ 38,169
====== =======
NOTE: Other income(expense) above primarily reflects the gain on sale
of the Company's CP Industries division in April of 2008. The
expense in the month of May reflects adjustments to the
original recorded gain.
- 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)
Adjusted
26-Nov-07 30-Apr-08 31-May-08
--------- --------- ---------
ASSETS:
Cash and Equivalents $ 754 $ 51,452 $ 16,403
Net Receivables 7,166 2,800 2,801
Net Inventory 12,369 2,577 2,451
Other Current Assets 3,029 1,370 2,219
------- ------- -------
Current 23,318 58,199 23,874
Net Property 6,300 3,221 3,223
Goodwill 10,994 1,491 1,491
CSV policies 2,200 2,195 2,195
Interest in China JV 3,009 3,180 3,286
------- ------- -------
Total $ 45,821 $ 68,286 $ 34,069
======= ======= =======
LIABILITIES & EQUITY:
Current Maturities of Debt $ 0 $ 0 $ 0
Trade Payables 3,305 2,830 2,697
Accrued Income Taxes 0 11 11
Accrued Interest 544 623 630
Customer Deposits 4,424 0 0
Accrued Other 4,272 2,134 4,668
------- ------- -------
Current 12,545 5,598 8,006
Secured Debt and interest 53,418 43,380 9,694
Other Liabilities 3,101 1,211 1,211
------- ------- -------
Total Liabilities 69,064 50,189 18,911
Total Equity (23,243) 18,097 15,158
------- ------- -------
Total $ 45,821 $ 68,286 $ 34,069
======= ======= =======
- A-8 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 1/3
SUMMARY OF UNPAID POST PETITION TAXES AND DEBTS
AS OF MAY 31, 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
May 2008 - paid in June $ 49
DEBTS:
------
Days Past Due
---------------------------
Current 0-30 31-60 61-90 Over 91 Total
------ ---- ---- ---- ------ ------
Accounts Payable $ 298 $ 71 $ 2 $ 0 $ 2,326 $ 2,697
Wages Payable 78 78
Taxes Payable 0 0
Rent-Building 0 0
Adequate Protection Paymts 0 0
Professional Fees 0 0 32 32
Amounts due Insiders 7 15 15 15 33 85
---- --- --- --- ----- -----
Total $ 383 $ 86 $ 49 $ 15 $ 2,359 $ 2,892
===== === === === ===== =====
Explanations:
Wages represent hourly wages earned in the last half of May that were
paid in June.
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 2/3
FIT/FICA TAX PAYMENTS and FUTA 940 TAX PAYMENTS
MAY 2008
--------
DATE
PAID REF CPI HANNA HQ TOTAL
---- --- ------ ------ ------ -------
MAY
01 941 29,455.72 17,876.10 18,686.75 66,018.57
02 0.00
05 0.00
06 941 19,886.05 19,886.05
07 0.00
08 0.00
09 0.00
12 0.00
13 941 19,447.23 19,447.23
14 0.00
15 0.00
16 0.00
19 0.00
20 941 37,138.96 12,005.38 49,144.34
21 0.00
22 0.00
23 0.00
27 0.00
28 941 18,763.84 18,763.84
29 0.00
30 0.00
--------- ---------- --------- ----------
TOTAL 29,455.72 113,112.18 30,692.13 173,260.03
========= ========== ========= ==========
- A-10 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 3/3
PA., ILLINOIS, INDIANA AND WISCONSIN WITHHOLDING TAX PAYMENTS
MAY 2008
--------
DATE
PAID STATE HANNA HQ TOTAL
---- -------- -------- -------- ----------
MAY
01 0.00
02 PA & IL 1,617.91 4,145.72 5,763.63
05 0.00
06 0.00
07 IL 1,951.27 1,951.27
08 0.00
09 0.00
12 0.00
13 0.00
14 IL 1,896.49 1,896.49
15 WI 949.03 949.03
16 0.00
19 0.00
20 PA & IN 1,239.62 1,239.62
21 IL 3,524.44 3,524.44
22 0.00
23 0.00
27 0.00
28 0.00
29 IL 1,852.02 1,852.02
30 WI 977.16 977.16
-------- -------- --------
TOTAL 12,768.32 5,385.34 18,153.66
========= ======== =========
- A-11 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 5
ACCOUNTS RECEIVABLE AND TAXES AGING
AS OF MAY 31, 2008
------------------
($ Amounts in 000's)
TRADE ACCOUNTS RECEIVABLE RECONCILIATION:
----------------------------------------
Trade Receivables - beg of month $ 2,909
Plus: Invoiced during the month 1,716
Less: Amounts collected (1,711)
------
Trade Receivables - end of month $ 2,914
======
ACCOUNTS RECEIVABLE AGINGS:
---------------------------
0-30 $ 1,730
31-60 971
61-90 124
91+ 89
------
Total trade receivables 2,914
Non-trade receivables 9
Less: Reserve for bad debts (122)
------
Net Receivables - per balance sheet $ 2,801
======
TAXES PAYABLE
-------------
Taxes from late May payrolls - paid in June $ 49
===
- A-12 -
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
MAY 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 $ 9,000
Charles E. Bradley Director fees $ 9,833 $ 58,998
Thomas L. Cassidy Director fees $ 1,500 $ 9,000
David E. Jackson Director fees $ 1,500 $ 9,000
Joseph C. Lawyer Director fees $ 4,625 $ 27,750
John G. Poole Director fees $ 5,000 $ 30,000
Kimball J. Bradley, CEO Salary $32,627 $195,762
John M. Froehlich, CFO Salary $18,255 $109,530
Thomas J. Vogel, VP Salary $ 9,350 $ 56,100
PROFESSIONALS:
--------------
TOTAL
DATE OF PAID THIS TOTAL INCURRED
COURT AMOUNT PERIOD PAID TO AND
ORDER APPROVED AMOUNT DATE UNPAID
------- -------- --------- ------- --------
Lincoln International 1/24/08 $1,098,295 $989,157 $1,098,395 $ 0
Reid and Riege, PC 11/28/07 $ 237,396 $ 64,205 $ 237,396 $31,848
POST PETITION STATUS OF SECURED NOTES,LEASES AND ADEQUATE PROTECTION PAYMENTS:
------------------------------------------------------------------------------
MONTHLY PAID POST
PAYM'TS DURING PETITION
NAME OF CREDITOR DUE MONTH UNPAID
------------------------- --------- --------- ---------
SECURED NOTES:(Principal in default)
ADEQUATE PROTECTION PAYMENTS:
Steel Partners $ 0 $ 3,558,139 $ 0
U.S. Bank, as Trustee $ 0 $30,441,861 $ 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-13 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 7
DEBTOR QUESTIONNAIRE
MAY 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 BY 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
- A-14 -