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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) December 1, 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 October 29, 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: December 1, 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: OCT. 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 NOV 19, 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
OCTOBER 2009
--------------
Cash - beginning of period excluding $ 1,851,435
Plus: Collections on receivables 1,199,327
Plus: Miscellaneous/Titan receipts 589,770
Less: Disbursements
Net payroll 341,238
Payroll taxes 140,504
Titan disbursements 9,263
Other operating 1,203,817
Income Tax payments 0
Reorganization:
Professional fees 106,773
U.S. Trustee fees - quarterly 10,400
---------
Total 1,811,995
---------
Cash - end of period $ 1,828,537
===========
- A-2 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 2/4
BANK RECONCILIATION
AS OF OCTOBER 31, 2009
----------------------
BANK PNC BANK PNC BANK PNC BANK
TYPE OPERATING PAYROLL HEALTHCARE
ACCOUNT NUMBER 2161326 2184149 2880718
Balance per books $ 118,444 $(1,666) $ 5,555
========= ======= ========
BANK BALANCE $ 263,859 $ 0 $ 7,718
Deposits in transit
Outstanding checks (145,415) (1,666) (2,163)
Other - explain below
--------- ------- --------
Adj. Bank Balance $ 118,444 $(1,666) $ 5,555
========= ======== ========
("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 OCTOBER 31, 2009
----------------------
BANK PNC BANK PNC BANK PNC BANK
TYPE PENSION COLLATERAL CARVE-OUT
ACCOUNT NUMBER 1011567058 1019820572 1019820847
Balance per books $ 0 $ 0 $1,517,110
======== ========== =========
BANK BALANCE $ 5,272 $ 0 $1,517,110
Deposits in transit
Outstanding checks (5,272)
Other - explain below
-------- ---------- ---------
Adj. Bank Balance $ 0 $ 0 $1,517,110
======== ========== =========
("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 OCTOBER 31, 2009
----------------------
BANK FIFTH THIRD FIFTH THIRD Chase Chase
TYPE OPERATING PAYROLL Operating Royalty
ACCOUNT NUMBER 7512940417 1065629 1690008469 1820765236
Balance per books $ 34,179 $ (15,879) $ 55,962 $ 114,832
========= ======== ======= ========
BANK BALANCE $ 379,177 $ 7,865 $ 65,899 $ 117,958
Deposits in transit
Outstanding checks (344,998) (23,744) (9,937) (3,126)
Other - explain below
--------- -------- ------- --------
Adj. Bank Balance $ 34,179 $ (15,879) $ 55,962 $ 114,832
========= ======== ======= ========
("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
Oct-09 31-Oct-09
-------- ---------
Net Sales $ 1,452 $ 44,675
Cost of Sales:
Standard Cost 1,054 32,653
Variances & Other 192 5,151
------ ------
Gross Profit 206 6,871
Operating Expenses:
Marketing 48 1,735
General & Admin 263 7,837
------ -------
Operating Profit (105) (2,701)
Other Income(Expense) 454 40,724
Equity in China JV 33 1,203
Reorganization exp:
Professional fees 0 (615)
U.S. Trustee fees 0 (81)
Adequate Protection Paym't Exp. 0 (450)
Interest (Expense) - excluding Adequate
Protection Payments (29) (4,987)
------ -------
Profit before tax 353 33,093
Income Tax 0 (1,300)
------ -------
Net Income $ 353 $ 31,793
======= ========
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 30-Sep-09 31-Oct-09
--------- --------- ---------
ASSETS:
Cash and Equivalents $ 754 $ 1,851 $ 1,828
Net Receivables 7,166 1,962 2,194
Net Inventory 12,369 2,149 2,040
Other Current Assets 3,029 1,749 1,714
------- ------- -------
Current 23,318 7,711 7,776
Net Property 6,300 3,317 3,291
Goodwill 10,994 1,491 1,491
CSV policies 2,200 1,340 1,340
Interest in China JV 3,009 4,179 4,212
------- ------- -------
Total $ 45,821 $ 18,038 $ 18,110
========= ========= ========
LIABILITIES & EQUITY:
Current Maturities of Debt $ 0 $ 0 $ 0
Trade Payables 3,305 1,106 953
Accrued Income Taxes 0 9 9
Accrued Interest 544 1,155 1,109
Customer Deposits 4,424 0 0
Accrued Other 4,272 6,414 6,332
------- ------- -------
Current 12,545 8,684 8,403
Secured Debt and interest 53,418 0 0
Other Liabilities 3,101 1,184 1,184
------- ------- -------
Total Liabilities 69,064 9,868 9,587
Total Equity (23,243) 8,170 8,523
------- ------- -------
Total $ 45,821 $ 18,038 $ 18,110
========= ========= ========
- 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 OCTOBER 31, 2009
----------------------
($ Amounts in 000's)
TAXES:
------
Beg Ending
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 $ 562 $ 269 $ 47 $ 0 $ 0 $ 878
Wages Payable 71 71
Taxes Payable 0 0
Rent-Building 0 0
Adequate Protect'n Paymts 0 0
Professional Fees 0 15 14 23 23 75
Amounts due Insiders 0 0 0 0 144 144
----- ---- ---- ---- ---- ----
Total $ 633 $ 284 $ 61 $ 23 $ 167 $ 1,168
====== ===== ===== ===== ==== ======
Explanations:
Wages represent hourly wages earned in the current month that were paid in
the following month.
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
OCTOBER 2009
------------
DATE
PAID HANNA HQ TOTAL
---- ----- ------ -----
01 15,052 15,052
02 0
05 0
06 0
07 0
08 13,882 13,882
09 0
12 0
13 0
14 24,035 10,394 34,429
15 14,322 14,322
16 0
19 0
20 0
21 0
22 13,904 13,904
23 0
26 0
27 0
28 24,387 10,089 34,476
29 14,439 14,439
30 0
------- ------ -------
TOTAL $120,021 $20,483 $140,504
======= ====== =======
- A-9 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 5
ACCOUNTS RECEIVABLE AND TAXES AGING
AS OF OCTOBER 31, 2009
----------------------
($ Amounts in 000's)
TRADE ACCOUNTS RECEIVABLE RECONCILIATION:
----------------------------------------
Trade Receivables - beg of month $ 2,106
Plus: Invoiced during the month 1,461
Less: Amounts collected (1,199)
Less: Credits/Adjustments (27)
-------
Trade Receivables - end of month $ 2,341
=======
ACCOUNTS RECEIVABLE AGINGS:
---------------------------
0-30 $ 1,434
31-60 788
61-90 61
91+ 58
------
Total trade receivables 2,341
Non-trade receivables 0
Less: Reserve for bad debts (147)
-------
Net Receivables - per balance sheet $ 2,194
======
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
OCTOBER 2009
------------
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 $226,159
Thomas L. Cassidy Director fees $ 0 $ 19,500
Thomas Certo Director fees $ 1,500 $ 15,000
David E. Jackson Director fees $ 1,500 $ 34,500
Joseph C. Lawyer Director fees $ 4,625 $106,375
John G. Poole Director fees $ 5,000 $115,000
Kimball J. Bradley, CEO Salary $32,627 $750,421
John M. Froehlich, CFO Salary $18,255 $401,610
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 $ 106,772 $ 846,323 $ 0
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:
U.S. Bank, as Trustee $ 0 $ 0 $ 0
LEASES
------
KWA Properties $ 70,198 $ 70,198 $ 0
US Bancorp $ 2,890 $ 2,890 $ 0
- A-11 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 7
DEBTOR QUESTIONNAIRE
OCTOBER 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 -