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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) June 5, 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 May 28, 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: June 5, 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: APR-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 MAY 23, 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
APRIL 2008
----------
Cash - beginning of period excluding
lock-boxes $ 392,901
Plus: DIP borrowings 3,050,000
Plus: Net proceeds from sale of CPI 50,759,024
Less: Disbursements
Net payroll 488,572
Payroll taxes 352,133
Steel purchases - CPI 0
Titan disbursements 23,111
Other operating 1,310,931
Reorganization:
Professional fees 120,395
U.S. Trustee fees 13,000
Adequate Protection Payments 50,000
----------
Total 2,358,142
Less: Outstanding checks 391,307
----------
Cash - end of period $51,452,476
==========
NOTE:
In connection with the sale of the CP Industries division on
April 18, 2008, the Company's DIP Financing Agreement
was paid in full. Additionally, another creditor with a secured
lien was paid in full. The total of these payments was $14.7
million. This amount has been netted against the proceeds
from the sale of the CPI division.
- A-2 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 2/5
BANK RECONCILIATION
AS OF APRIL 30, 2008
--------------------
BANK PNC BANK PNC BANK PNC BANK PNC BANK
TYPE OPERATING PAYROLL HEALTHCARE PENSION
ACCOUNT NUMBER 2161326 2184149 2880718 10382890
Balance per books $ 76,022 $ 0 $ 0 $ 0
======== ======= ======== ========
BANK BALANCE $190,310 $ 0 $ 86,042 $ 710
Deposits in transit 0
Outstanding checks (114,288) - (86,042) (710)
Other - explain below See Note 1
-------- -------- -------- --------
Adj. Bank Balance $ 76,022 $ 0 $ 0 $ 0
======== ======== ======== ========
("Adj. Bank Balance" must equal "Balance per books".)
EXPLANATION OF OTHER:
Note 1: Bank balance includes $150,310 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 APRIL 30, 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 $ 0 $ 0 $ 0
======== ======= ======== ========
BANK BALANCE $ 0 $ 3,673 $ 0 $ 2,259
Deposits in transit 0
Outstanding checks 0 (3,673) (2,259)
Other - explain below
-------- -------- -------- --------
Adj. Bank Balance $ 0 $ 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 APRIL 30, 2008
--------------------
BANK PNC BANK PNC BANK PNC BANK
TYPE Cash Collat'l Carve-Out Segregated
ACCOUNT NUMBER 1019820572 1019820847 1019821057
Balance per books $50,259,024 $ 250,000 $ 250,000
=========== ========= =========
BANK BALANCE $50,259,024 $ 250,000 $ 250,000
Deposits in transit
Outstanding checks
Other - explain below
----------- --------- ---------
Adj. Bank Balance $50,259,024 $ 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 APRIL 30, 2008
--------------------
BANK FIFTH THIRD FIFTH THIRD FIFTH THIRD
TYPE OPERATING LOCK-BOX PAYROLL
ACCOUNT NUMBER 7512940417 1055011 1065629
Balance per books $ 377,303 $ 240,127 $ 0
========= ======== =======
BANK BALANCE $ 561,638 $ 240,127 $ 0
Deposits in transit
Outstanding checks (184,335)
Other - explain below
--------- -------- -------
Adj. Bank Balance $ 377,303 $ 240,127 $ 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
Apr 2008 30-Apr-08
-------- ---------
Net Sales $ 2,682 $ 21,628
Cost of Sales:
Standard Cost 2,118 15,830
Variances & Other 305 1,106
------ -------
Gross Profit 259 4,692
Operating Expenses:
Marketing 140 662
General & Admin 347 1,812
------ -------
Operating Profit (228) 2,218
Other Income(Expense) 42,734 42,737
Equity in China JV 30 171
Reorganization exp:
Professional fees (121) (187)
U.S. Trustee fees (13) (21)
Other
Adequate Protection Paym't Exp. (50) (450)
Interest Expense - excluding Adequate
Protection Payments (960) (3,360)
------ -------
Profit before tax 41,392 41,108
Income Tax 0 0
------ -------
Net Income $ 41,392 $ 41,108
====== =======
- 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 31-Mar-08 30-Apr-08
--------- --------- ---------
ASSETS:
Cash and Equivalents $ 754 $ 393 $ 51,452
Net Receivables 7,166 9,028 2,800
Net Inventory 12,369 11,617 2,577
Other Current Assets 3,029 3,399 1,370
------- ------- -------
Current 23,318 24,437 58,199
Net Property 6,300 6,150 3,221
Goodwill 10,994 10,994 1,491
CSV policies 2,200 2,194 2,195
Interest in China JV 3,009 3,150 3,180
------- ------- -------
Total $ 45,821 $ 46,925 $ 68,286
======= ======= =======
LIABILITIES & EQUITY:
Current Maturities of Debt $ 0 $ 0 $ 0
Trade Payables 3,305 3,970 2,830
Accrued Income Taxes 0 11 11
Accrued Interest 544 748 661
Customer Deposits 4,424 3,137 0
Accrued Other 4,272 2,957 1,940
------- ------- -------
Current 12,545 10,823 5,442
Secured Debt and interest 53,418 56,512 43,380
Other Liabilities 3,101 2,729 1,211
------- ------- -------
Total Liabilities 69,064 70,064 50,033
Total Equity (23,243) (23,139) 18,253
------- ------- -------
Total $ 45,821 $ 46,925 $ 68,286
======= ======= =======
- 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 APRIL 30, 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
April 2008 - paid in May $ 72
DEBTS:
------
Days Past Due
---------------------------
Current 0-30 31-60 61-90 Over 91 Total
------ ---- ---- ---- ------ ------
Accounts Payable $ 344 $ 156 $ 4 $ 0 $ 2,326 $ 2,830
Wages Payable 113 113
Taxes Payable 0 0
Rent-Building 0 0
Adequate Protection Paymts 0 0
Professional Fees 0 95 11 106
Amounts due Insiders 15 15 15 15 18 78
---- --- --- --- ----- -----
Total $ 472 $ 266 $ 30 $ 15 $ 2,344 $ 3,127
===== === === === ===== =====
Explanations:
Wages represent hourly wages earned in the last half of April that were
paid in May.
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
APRIL 2008
----------
DATE HANNA CPI
PAID CPI HANNA MGT MGT HQ TOTAL
---- ------- ------- ------- ------- ------- --------
APR
01 4,169.62 18,044.04 19,060.50 13,366.67 23,408.96 78,049.79
02 0.00
03 45,060.16 45,060.16
04 0.00
07 0.00
08 22,019.53 22,019.53
09 0.00
10 0.00
11 0.00
14 0.00
15 4,103.38 19,866.14 23,969.52
16 0.00
17 41,094.15 18,730.47 13,459.41 18,556.82 91,840.85
18 0.00
21 0.00
22 19,924.11 19,924.11
23 0.00
24 0.00
25 0.00
28 20,093.49 20,093.49
29 0.00
30 6,216.25 6,850.88 553.91 13,621.04
---------- --------- --------- --------- --------- ----------
TOTAL 100,643.56 84,778.66 59,810.50 26,826.08 42,519.69 314,578.49
========== ========= ========= ======== ========= ==========
- A-10 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 3/4
PENNSYLVANIA AND OHIO WITHHOLDING TAX
APRIL 2008
----------
DATE CPI
PAID REF CPI MGT HQ TOTAL
---- ----- ------- ------- -------- -------
APR
01 0.00
02 PA 5,394.26 1,387.08 1,974.89 8,756.23
03 0.00
04 0.00
07 0.00
08 0.00
09 0.00
10 0.00
11 0.00
14 0.00
15 0.00
16 0.00
17 0.00
18 PA 9,744.18 1,396.29 1,689.23 12,829.70
21 0.00
22 0.00
23 0.00
24 0.00
25 0.00
28 0.00
29 0.00
30 OH 671.27 671.27
-------- --------- -------- ---------
TOTAL 15,809.71 2,783.37 3,664.12 22,257.20
========= ======== ======== =========
- A-11 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 4/4
ILLINOIS, INDIANA AND WISCONSIN WITHHOLDING TAX
APRIL 2008
----------
DATE HANNA
PAID REF HANNA MGT HQ TOTAL
---- ----- ------- ------- -------- -------
APR
01 0.00
02 IL 1,801.96 1,674.51 3,476.47
03 0.00
04 0.00
07 0.00
08 0.00
09 IL 2,147.71 2,147.71
10 0.00
11 0.00
14 0.00
15 WI 1,053.53 1,053.53
16 IL 1,940.20 1,940.20
17 IN 68.54 68.54
18 IL 1,688.29 1,688.29
21 0.00
22 0.00
23 IL 1,967.75 1,967.75
24 0.00
25 0.00
28 0.00
29 WI 637.59 349.75 987.34
30 IL 1,967.61 1,967.61
-------- --------- -------- ---------
TOTAL 11,516.35 3,712.55 68.54 15,297.44
========= ======== ======== =========
- A-12 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 5
ACCOUNTS RECEIVABLE AND TAXES AGING
AS OF APRIL 30, 2008
--------------------
($ Amounts in 000's)
TRADE ACCOUNTS RECEIVABLE RECONCILIATION:
----------------------------------------
Trade Receivables - beg of month $ 9,120
Plus: Invoiced during the month 3,766
Less: Amounts collected (5,024)
Less: CPI sale (4,953)
------
Trade Receivables - end of month $ 2,909
======
ACCOUNTS RECEIVABLE AGINGS:
---------------------------
0-30 $ 1,756
31-60 766
61-90 215
91+ 172
------
Total trade receivables 2,909
Non-trade receivables 1
Less: Reserve for bad debts (110)
------
Net Receivables - per balance sheet $ 2,800
======
TAXES PAYABLE
-------------
Taxes from late April payrolls - paid in May $ 72
===
- 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
APRIL 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 $ 7,500
Charles E. Bradley Director fees $ 9,833 $ 49,165
Thomas L. Cassidy Director fees $ 1,500 $ 7,500
David E. Jackson Director fees $ 1,500 $ 7,500
Joseph C. Lawyer Director fees $ 4,625 $ 23,125
John G. Poole Director fees $ 5,000 $ 25,000
Kimball J. Bradley, CEO Salary $32,627 $163,135
John M. Froehlich, CFO Salary $18,255 $ 91,275
Thomas J. Vogel, VP Salary $ 9,350 $ 46,750
PROFESSIONALS:
--------------
TOTAL
DATE OF PAID THIS TOTAL INCURRED
COURT AMOUNT PERIOD PAID TO AND
ORDER APPROVED AMOUNT DATE UNPAID
------- -------- --------- ------- ---------
Lincoln International 1/24/08 $109,138 $43,693 $109,138 $989,157
Reid and Riege, PC 11/28/07 $173,191 $76,702 $173,191 $ 96,053
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 $ 0 $ 0 $ 0
Paradigm Capital $ 0 $ 0 $ 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
APRIL 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 were received from Wachovia Bank
during the month re: DIP Financing.
- A-15 -