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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) October 26, 2009
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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 September 25, 2009 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: October 26, 2009 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: AUG 2009
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Federal Tax I.D. # 06-1439715
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CORPORATE MONTHLY OPERATING REPORT
DOCUMENT EXPLANATION
REQUIRED DOCUMENTS FORM NO. 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 SEPT 23, 2009
------------------------- -------------
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 1/4
CASH RECEIPTS AND DISBURSEMENTS
AUGUST 2009
-----------
Cash - beginning of period excluding $ 2,086,150
Plus: Collections on receivables 1,145,565
Plus: Miscellaneous/Titan receipts 683,250
Less: Disbursements
Net payroll 315,951
Payroll taxes 116,571
Titan disbursements 27,767
Other operating 1,387,070
Income Tax payments 0
Reorganization:
Professional fees 43,359
U.S. Trustee fees - quarterly 0
---------
Total 1,890,718
---------
Cash - end of period $ 2,024,247
===========
- A-2 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 2/4
BANK RECONCILIATION
AS OF AUGUST 31, 2009
---------------------
BANK PNC BANK PNC BANK PNC BANK
TYPE OPERATING PAYROLL HEALTHCARE
ACCOUNT NUMBER 2161326 2184149 2880718
Balance per books $ 108,499 $(4,064) $ 2,909
========= ======= ========
BANK BALANCE $ 149,431 $ 0 $ 18,296
Deposits in transit
Outstanding checks (40,932) (4,064) (15,387)
Other - explain below
--------- ------- --------
Adj. Bank Balance $ 108,499 $(4,064) $ 2,909
========= ======== ========
("Adj. Bank Balance" must equal "Balance per books".)
EXPLANATION OF OTHER:
- A-3 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 3/4
BANK RECONCILIATION
AS OF AUGUST 31, 2009
---------------------
BANK PNC BANK PNC BANK PNC BANK
TYPE PENSION COLLATERAL CARVE-OUT
ACCOUNT NUMBER 1011567058 1019820572 1019820847
Balance per books $ 0 $ 0 $1,517,107
======== ========== =========
BANK BALANCE $ 8,144 $ 0 $1,517,107
Deposits in transit
Outstanding checks (8,144)
Other - explain below
-------- ---------- ---------
Adj. Bank Balance $ 0 $ 0 $1,517,107
======== ========== =========
("Adj. Bank Balance" must equal "Balance per books".)
- A-4 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 4/4
BANK RECONCILIATION
AS OF AUGUST 31, 2009
---------------------
BANK FIFTH THIRD FIFTH THIRD Chase Chase
TYPE OPERATING PAYROLL Operating Royalty
ACCOUNT NUMBER 7512940417 1065629 1690008469 1820765236
Balance per books $ 277,464 $ (28,362) $ 41,237 $ 109,357
========= ======== ======= ========
BANK BALANCE $ 634,672 $ 0 $ 47,353 $ 111,874
Deposits in transit
Outstanding checks (357,208) (28,362) (6,116) (2,517)
Other - explain below
--------- -------- ------- --------
Adj. Bank Balance $ 277,464 $ (28,362) $ 41,237 $ 109,357
========= ======== ======= ========
("Adj. Bank Balance" must equal "Balance per books".)
- A-5 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 2
INCOME STATEMENT
FOR THE PERIODS INDICATED
-------------------------
($ amounts in thousands)
Adjusted
Post
Month of Petition to
Aug-09 31-Aug-09
-------- ---------
Net Sales $ 1,157 $ 41,960
Cost of Sales:
Standard Cost 813 30,703
Variances & Other 242 4,827
------ ------
Gross Profit 102 6,430
Operating Expenses:
Marketing 43 1,646
General & Admin 233 7,282
------ -------
Operating Profit (174) (2,498)
Other Income(Expense) 3 40,248
Equity in China JV 14 1,162
Reorganization exp:
Professional fees (615)
U.S. Trustee fees 0 (81)
Adequate Protection Paym't Exp. 0 (450)
Interest (Expense) - excluding Adequate
Protection Payments (3) (4,930)
------ -------
Profit before tax (160) 32,836
Income Tax 0 (1,300)
------ -------
Net Income $ (160) $ 31,536
======== ========
NOTE: Other income(expense) above primarily reflects the gain on
the sale of the Company's CP Industries division in
April of 2008.
- A-6 -
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-Jul-09 31-Aug-09
--------- --------- ---------
ASSETS:
Cash and Equivalents $ 754 $ 2,087 $ 2,024
Net Receivables 7,166 1,815 1,804
Net Inventory 12,369 2,133 2,151
Other Current Assets 3,029 1,745 1,769
------- ------- -------
Current 23,318 7,780 7,748
Net Property 6,300 3,367 3,342
Goodwill 10,994 1,491 1,491
CSV policies 2,200 1,990 1,340
Interest in China JV 3,009 4,157 4,171
------- ------- -------
Total $ 45,821 $ 18,785 $ 18,092
========= ========= ========
LIABILITIES & EQUITY:
Current Maturities of Debt $ 0 $ 0 $ 0
Trade Payables 3,305 1,258 932
Accrued Income Taxes 0 11 9
Accrued Interest 544 1,254 1,219
Customer Deposits 4,424 0 0
Accrued Other 4,272 6,642 6,472
------- ------- -------
Current 12,545 9,165 8,632
Secured Debt and interest 53,418 0 0
Other Liabilities 3,101 1,184 1,184
------- ------- -------
Total Liabilities 69,064 10,349 9,816
Total Equity (23,243) 8,436 8,276
------- ------- -------
Total $ 45,821 $ 18,785 $ 18,092
========= ========= ========
- A-7 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 1/2
SUMMARY OF UNPAID POST PETITION TAXES AND DEBTS
AS OF AUGUST 31, 2009
---------------------
($ 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 page 2
-----------------------------------
Payroll taxes in 2009 are being immediately paid to the
Company's payroll service company who will pay and file
the Company's payroll taxes.
DEBTS:
------
Days Past Due
---------------------------
Current 0-30 31-60 61-90 Over 91 Total
------- ----- ----- ----- ------- -------
Payable-excl Professional $ 386 $ 209 $ 79 $ 0 $ 91 $ 765
Wages Payable 82 82
Taxes Payable 0 0
Rent-Building 0 0
Adequate Protect'n Paymts 0 0
Professional Fees 14 24 22 107 0 167
Amounts due Insiders 0 0 0 0 144 144
----- ---- ---- ---- ---- ----
Total $ 482 $ 233 $ 101 $ 107 $ 235 $ 1,158
====== ===== ===== ===== ==== ======
Explanations:
Wages represent hourly wages earned in August that were paid in September.
Professional fees are due Reid and Riege.
Amounts due insiders represent post petition interest on note and guaranty fees.
- A-8 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 2/2
FIT/FICA TAX PAYMENTS and FUTA 940 TAX PAYMENTS AND
ALL STATE AND LOCAL WITHHOOLDING TAX AND SUTA PAYMENTS
AUGUST 2009
-----------
DATE
PAID HANNA HQ TOTAL
---- ----- ------ -----
03 0
04 0
04 0
06 0
07 9,015 9,015
10 0
11 0
12 0
13 0
14 35,833 10,391 46,224
17 0
18 0
19 0
20 0
21 12,759 12,759
24 0
25 0
26 0
27 14,282 14,282
28 24,201 10,090 34,291
31 0
------- ------ -------
TOTAL $ 96,090 $20,481 $116,571
======= ====== =======
- A-9 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 5
ACCOUNTS RECEIVABLE AND TAXES AGING
AS OF AUGUST 31, 2009
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($ Amounts in 000's)
TRADE ACCOUNTS RECEIVABLE RECONCILIATION:
----------------------------------------
Trade Receivables - beg of month $ 1,953
Plus: Invoiced during the month 1,153
Less: Amounts collected (1,146)
Less: Credits/Adjustments (15)
-------
Trade Receivables - end of month $ 1,945
=======
ACCOUNTS RECEIVABLE AGINGS:
---------------------------
0-30 $ 1,135
31-60 585
61-90 108
91+ 117
------
Total trade receivables 1,945
Non-trade receivables 0
Less: Reserve for bad debts (141)
-------
Net Receivables - per balance sheet $ 1,804
======
TAXES PAYABLE $ -
------------- ======
Payroll taxes in 2009 are being immediately paid to the
Company's payroll service company who will pay and file
the Company's payroll taxes.
- A-10 -
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
AUGUST 2009
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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 $ 0 $ 19,500
Charles E. Bradley Director fees $ 9,833 $206,493
Thomas L. Cassidy Director fees $ 0 $ 19,500
Thomas Certo Director fees $ 1,500 $ 12,000
David E. Jackson Director fees $ 1,500 $ 31,500
Joseph C. Lawyer Director fees $ 4,625 $ 97,125
John G. Poole Director fees $ 5,000 $105,000
Kimball J. Bradley, CEO Salary $32,627 $685,167
John M. Froehlich, CFO Salary $18,255 $365,100
Thomas J. Vogel, VP Salary $ 0 $169,200
PROFESSIONALS:
--------------
TOTAL
DATE OF PAID THIS TOTAL INCURRED
COURT AMOUNT PERIOD PAID TO AND
ORDER APPROVED AMOUNT DATE UNPAID
------- -------- --------- ------- --------
Reid and Riege, PC 11/28/07 $ 846,323 $ 43,359 $ 739,551 $106,772
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:
U.S. Bank, as Trustee $ 0 $ 0 $ 0
LEASES
------
KWA Properties $ 70,198 $ 70,198 $ 0
IPC REIT - Stanwix Street Assoc $ 3,350 $ 3,350 $ 0
US Bancorp $ 2,890 $ 2,890 $ 0
- A-11 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 7
DEBTOR QUESTIONNAIRE
AUGUST 2009
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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 DEBTOR RECEIVED NOTICE OF EXPIRATION OR
CANCELLATION OF SUCH POLICIES? X
5. IS THE DEBTOR DELINQUENT IN PAYING ANY INSURANCE PREMIUM? 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.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
OUTSIDE OF THE NORMAL COURSE OF BUSINESS? X
- A-12 -