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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) September 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 August 27,2008 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: September 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: JULY 2008
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Federal Tax I.D. # 06-1439715
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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 AUGUST 25, 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 1/4
CASH RECEIPTS AND DISBURSEMENTS
JULY 2008
---------
Cash - beginning of period excluding $ 16,504,083
Plus: Collections on receivables 1,580,288
Plus: Miscellaneous/Titan receipts/China Dividend 752,460
Less: Disbursements
Net payroll 350,158
Payroll taxes 162,193
Titan disbursements 23,955
Other operating 1,576,872
Secured debt payments 9,439,642
Reorganization:
Professional fees 0
U.S. Trustee fees 30,000
----------
Total 11,582,820
Increase(Decrease)in outstanding checks 83,327
----------
Cash - end of period $ 7,170,684
==========
- A-2 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 2/4
BANK RECONCILIATION
AS OF JULY 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 $ 94,732 $ 0 $ 0 $ 0
======== ======= ======== ========
BANK BALANCE $283,815 $ 0 $ 27,268 $ 710
Deposits in transit 0
Outstanding checks (189,083) - (27,268) (710)
Other - explain below See Note 1
-------- -------- -------- --------
Adj. Bank Balance $ 94,732 $ 0 $ 0 $ 0
======== ======== ======== ========
("Adj. Bank Balance" must equal "Balance per books".)
EXPLANATION OF OTHER:
Note 1: Bank balance includes $239,258 in an overnight deposit account.
- A-3 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 3/4
BANK RECONCILIATION
AS OF JULY 31, 2008
-------------------
BANK PNC BANK PNC BANK PNC BANK PNC BANK
TYPE PENSION COLLATERAL CARVE-OUT SEGREGATED
ACCOUNT NUMBER 1011567058 1019820572 1019820847 1019821057
Balance per books $ 0 $5,830,223 $250,944 $250,944
======== ========== ======== ========
BANK BALANCE $ 6,131 $5,830,223 $250,944 $250,944
Deposits in transit 0
Outstanding checks (6,131)
Other - explain below -------- ---------- -------- --------
Adj. Bank Balance $ 0 $5,830,223 $250,944 $250,944
======== ========== ======== ========
("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 JULY 31, 2008
-------------------
BANK FIFTH THIRD FIFTH THIRD Chase Chase
TYPE OPERATING PAYROLL Operating Royalty
ACCOUNT NUMBER 7512940417 1065629 1690008469 1820765236
Balance per books $ 482,100 $ 0 $ 75,754 $ 185,987
========= ======== ======= ========
BANK BALANCE $ 625,549 $ 0 $ 75,754 $ 185,987
Deposits in transit
Outstanding checks (143,449)
Other - explain below
--------- -------- ------- --------
Adj. Bank Balance $ 482,100 $ 0 $ 75,754 $ 185,987
========= ======== ======= ========
("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)
Post
Month of Petition to
Jul-08 31-July-08
-------- ---------
Net Sales $ 1,496 $ 26,560
Cost of Sales:
Standard Cost 1,042 19,354
Variances & Other 255 1,781
------ -------
Gross Profit 199 5,425
Operating Expenses:
Marketing 47 810
General & Admin 278 2,646
------ -------
Operating Profit (126) 1,969
Other Income(Expense) 143 40,154
Equity in China JV 175 585
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 (272) (3,925)
------ -------
Profit before tax (80) 38,125
Income Tax 0 0
------ -------
Net Income $ (80) $ 38,125
====== =======
NOTE: Other income(expense) above primarily reflects an adjustment to
the gain on 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 30-Jun-08 31-Jul-08
--------- --------- ---------
ASSETS:
Cash and Equivalents $ 754 $ 16,504 $ 7,171
Net Receivables 7,166 2,870 2,838
Net Inventory 12,369 2,302 2,049
Other Current Assets 3,029 1,980 2,026
------- ------- -------
Current 23,318 23,656 14,084
Net Property 6,300 3,220 3,218
Goodwill 10,994 1,491 1,491
CSV policies 2,200 2,195 2,195
Interest in China JV 3,009 3,419 3,594
------- ------- -------
Total $ 45,821 $ 33,981 $ 24,582
======= ======= =======
LIABILITIES & EQUITY:
Current Maturities of Debt $ 0 $ 0 $ 0
Trade Payables 3,305 2,962 2,803
Accrued Income Taxes 0 11 11
Accrued Interest 544 635 641
Customer Deposits 4,424 0 0
Accrued Other 4,272 4,245 4,307
------- ------- -------
Current 12,545 7,853 7,762
Secured Debt and interest 53,418 9,728 500
Other Liabilities 3,101 1,206 1,206
------- ------- -------
Total Liabilities 69,064 18,787 9,468
Total Equity (23,243) 15,194 15,114
------- ------- -------
Total $ 45,821 $ 33,981 $ 24,582
======= ======= =======
- A-7 -
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 JULY 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 3
-----------------------------------------
Amount due for payrolls in the last half of
July 2008 - paid in August. $ 32
DEBTS:
------
Days Past Due
---------------------------
Current 0-30 31-60 61-90 Over 91 Total
------ ---- ---- ---- ------ ------
Accounts Payable $ 320 $ 136 $ 21 $ 0 $ 2,326 $ 2,803
Wages Payable 90 90
Taxes Payable 0 0
Rent-Building 0 0
Adequate Protection Paymts 0 0
Professional Fees 0 28 66 67 319 480
Amounts due Insiders 4 6 22 15 63 110
---- --- --- --- ----- -----
Total $ 414 $ 170 $ 109 $ 82 $ 2,708 $ 3,483
===== === === === ===== =====
Explanations:
Wages represent hourly wages earned in the last half of July that were
paid in August.
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-8 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 2/3
FIT/FICA TAX PAYMENTS and FUTA 940 TAX PAYMENTS
JULY 2008
---------
DATE
PAID REF HANNA HQ TOTAL
---- --- ------ ------ -------
JULY
01 941 37,351.43 11,101.09 48,452.52
02 0.00
03 0.00
07 0.00
08 941 17,538.68 17,538.68
09 0.00
10 0.00
11 0.00
14 0.00
15 941 17,161.09 17,161.09
16 0.00
17 941 18,899.93 10,876.00 29,775.93
18 0.00
21 0.00
22 941 16,807.35 16,807.35
23 0.00
24 0.00
25 0.00
28 0.00
29 941 16,057.77 16,057.77
30 0.00
31 941 642.51 642.51
--------- ---------- ---------
TOTAL 123,816.25 22,619.60 146,435.85
========== ========== ==========
- A-9 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 3/3
PA., ILLINOIS, INDIANA AND WISCONSIN WITHHOLDING TAX PAYMENTS
JULY 2008
---------
DATE
PAID STATE HANNA HQ TOTAL
---- -------- -------- -------- ----------
JULY
01 0.00
02 PA & IL 3,555.77 1,167.82 4,723.59
03 0.00
07 0.00
08 0.00
09 IL 1,768.65 1,768.65
10 0.00
11 0.00
14 0.00
15 WI 1,813.22 1,813.22
16 IL 1,736.15 1,736.15
17 0.00
18 IL,IN & PA 1,691.33 1,236.36 2,927.69
21 OH 166.41 166.41
22 0.00
23 IL 1,674.98 1,674.98
24 0.00
25 0.00
28 0.00
29 0.00
30 IL 1,588.57 1,588.57
31
-------- -------- --------
TOTAL 13,828.67 2,570.59 16,399.26
========= ======== =========
- A-10 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 5
ACCOUNTS RECEIVABLE AND TAXES AGING
AS OF JULY 30, 2008
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($ Amounts in 000's)
TRADE ACCOUNTS RECEIVABLE RECONCILIATION:
----------------------------------------
Trade Receivables - beg of month $ 2,993
Plus: Invoiced during the month 1,540
Less: Amounts collected (1,569)
------
Trade Receivables - end of month $ 2,964
======
ACCOUNTS RECEIVABLE AGINGS:
---------------------------
0-30 $ 1,513
31-60 1,069
61-90 121
91+ 261
------
Total trade receivables 2,964
Non-trade receivables 13
Less: Reserve for bad debts (139)
------
Net Receivables - per balance sheet $ 2,838
======
TAXES PAYABLE
-------------
Taxes from late July payrolls - paid in August $ 32
===
- A-11 -
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
JULY 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 $ 12,000
Charles E. Bradley Director fees $ 9,833 $ 78,664
Thomas L. Cassidy Director fees $ 1,500 $ 12,000
David E. Jackson Director fees $ 1,500 $ 12,000
Joseph C. Lawyer Director fees $ 4,625 $ 37,000
John G. Poole Director fees $ 5,000 $ 40,000
Kimball J. Bradley, CEO Salary $32,627 $261,016
John M. Froehlich, CFO Salary $18,255 $146.040
Thomas J. Vogel, VP Salary $ 9,350 $ 74,800
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 $ 421,771 $ 0 $ 237,396 $184,346
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 $9,439,642 $ 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-12 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 7
DEBTOR QUESTIONNAIRE
JULY 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-13 -