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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) May 12, 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 April 29, 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: May 12, 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: MAR-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 APR 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 1/5
CASH RECEIPTS AND DISBURSEMENTS
MARCH 2008
----------
Cash - beginning of period excluding
lock-boxes $ 464,628
Plus: DIP borrowings 4,000,000
Less: Disbursements
Net payroll 694,730
Payroll taxes 322,931
Steel purchases - CPI 938,541
Titan disbursements 27,725
Other operating 1,594,683
Reorganization:
Professional fees 96,489
U.S. Trustee fees 0
Adequate Protection Payments 100,194
---------
Total 3,775,293
Less: Outstanding checks 296,434
---------
Cash - end of period $ 392,901
=========
NOTE:
Cash above does not include amounts in the lock-box accounts
for CPI and Hanna as these lock-box receipts are sent
directly to Wachovia Bank under the DIP financing facility.
MEMO ONLY ITEMS:
Cash Receipts-book:
Receivable collections $ 3,691,611
Non-receivable receipts 0
Receipts transferred to DIP bank (3,847,298)
----------
MEMO ONLY: Net activity $ (155,687)
==========
DIP bank interest/fees charged directly $ 127,001
==========
- A-2 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 1 page 2/5
BANK RECONCILIATION
AS OF MARCH 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 $229,298 $ 0 $ 0 $ 0
======== ======= ======== ========
BANK BALANCE $273,240 $ 0 $ 46,926 $ 710
Deposits in transit 0
Outstanding checks (43,942) - (46,926) (710)
Other - explain below See Note 1
-------- -------- -------- --------
Adj. Bank Balance $229,298 $ 0 $ 0 $ 0
======== ======== ======== ========
("Adj. Bank Balance" must equal "Balance per books".)
EXPLANATION OF OTHER:
Note 1: Bank balance includes $233,240 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 MARCH 31, 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 $ 4,559 $ 0 $ 0
======== ======= ======== ========
BANK BALANCE $ 0 $ 4,559 $ 0 $ 6,099
Deposits in transit 0
Outstanding checks 0 (6,099)
Other - explain below
-------- -------- -------- --------
Adj. Bank Balance $ 0 $ 4,559 $ 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 MARCH 31, 2008
--------------------
BANK PNC BANK PNC BANK
TYPE LOCK-BOX CPI-PAY
ACCOUNT NUMBER 1914007 1904706
Balance per books $ 23,004 $ 0
======== ========
BANK BALANCE $ 23,004 $ 0
Deposits in transit
Outstanding checks
Other - explain below
-------- --------
Adj. Bank Balance $ 23,004 $ 0
======== ========
("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 MARCH 31, 2008
--------------------
BANK FIFTH THIRD FIFTH THIRD FIFTH THIRD
TYPE OPERATING LOCK-BOX PAYROLL
ACCOUNT NUMBER 7512940417 1055011 1065629
Balance per books $ 0 $ 136,040 $ 0
========= ======== =======
BANK BALANCE $ 198,757 $ 136,040 $ 0
Deposits in transit
Outstanding checks (198,757)
Other - explain below
--------- -------- -------
Adj. Bank Balance $ 0 $ 136,040 $ 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
Mar 2008 31-Mar-08
-------- ---------
Net Sales $ 4,537 $ 18,946
Cost of Sales:
Standard Cost 3,360 13,712
Variances & Other 111 801
------ -------
Gross Profit 1,066 4,433
Operating Expenses:
Marketing 165 522
General & Admin 332 1,465
------ -------
Operating Profit 569 2,446
Other Income(Expense) 3 3
Equity in China JV 29 141
Reorganization exp:
Professional fees - (66)
U.S. Trustee fees - (8)
Other
Adequate Protection Paym't Exp. (100) (400)
Interest Expense - excluding Adequate
Protection Payments (739) (2,400)
------ -------
Profit before tax (238) (284)
Income Tax 0 0
------ -------
Net Income $ (238) $ (284)
====== =======
- 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 29-Feb-08 31-Mar-08
--------- --------- ---------
ASSETS:
Cash and Equivalents $ 754 $ 757 $ 393
Net Receivables 7,166 7,205 9,028
Net Inventory 12,369 12,399 11,617
Other Current Assets 3,029 2,356 3,399
------- ------- -------
Current 23,318 22,717 24,437
Net Property 6,300 6,174 6,150
Goodwill 10,994 10,994 10,994
CSV policies 2,200 2,194 2,194
Interest in China JV 3,009 3,121 3,150
------- ------- -------
Total $ 45,821 $ 45,200 $ 46,925
======= ======= =======
LIABILITIES & EQUITY:
Current Maturities of Debt $ 0 $ 0 $ 0
Trade Payables 3,305 3,900 3,970
Accrued Income Taxes 0 11 11
Accrued Interest 544 721 748
Customer Deposits 4,424 2,243 3,137
Accrued Other 4,272 3,234 3,131
------- ------- -------
Current 12,545 10,109 10,997
Secured Debt and interest 53,418 55,222 56,512
Other Liabilities 3,101 2,770 2,729
------- ------- -------
Total Liabilities 69,064 68,101 70,238
Total Equity (23,243) (22,901) (23,313)
------- ------- -------
Total $ 45,821 $ 45,200 $ 46,925
======= ======= =======
- 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 MARCH 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
March 2008 - paid in April $ 94
DEBTS:
------
Days Past Due
---------------------------
Current 0-30 31-60 61-90 Over 91 Total
------ ---- ---- ---- ------ ------
Accounts Payable $1,054 $ 480 $ 194 $ 78 $ 2,164 $ 3,970
Wages Payable 359 359
Taxes Payable 0 0
Rent-Building 0 0
Adequate Protection Paymts 0 0
Professional Fees 95 11 106
Amounts due Insiders 15 15 15 18 63
---- --- --- --- ----- -----
Total $1,523 $ 495 $ 220 $ 96 $ 2,164 $ 4,498
===== === === === ===== =====
Explanations:
Wages represent hourly wages earned in the last half of March that were
paid in April.
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
MARCH 2008
----------
DATE REFERENCE HANNA CPI
PAID NUMBER CPI HANNA MGT MGT HQ TOTAL
---- ---------- -------- ------- ------- ------- -------- -------
MAR
03 0.00
04 941 00401764 4085.14 21680.12 21995.63 13666.26 20560.43 81,987.58
05 0.00
06 941 00834787 46139.63 46,139.63
07 0.00
10 0.00
11 941 00432677 20438.17 20,438.17
12 0.00
13 0.00
14 0.00
17 0.00
18 941 00133924 4244.23 20017.71 19185.99 13414.60 20300.17 77,162.70
19 0.00
20 941 00863169 45796.86 45,796.86
21 0.00
24 0.00
25 941 00529624 20393.69 20,393.69
26 0.00
27 0.00
28 0.00
31 0.00
---------- --------- --------- --------- --------- ----------
TOTAL 100,265.86 82,529.69 41,181.62 27,080.86 40,860.60 291,918.63
========== ========= ========= ======== ========= ==========
- A-10 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 3/4
PENNSYLVANIA, NORTH CAROLINA AND OHIO WITHHOLDING TAX
MARCH 2008
----------
DATE REFERENCE CPI HANNA
PAID NUMBER CPI HANNA MGT MGT HQ TOTAL
---- ---------- -------- ------- ------- ------- -------- -------
MAR
03 0.00
04 0.00
05 PA 97526 5,614.23 1,413.32 1,682.15 8,709.70
06 0.00
07 0.00
10 0.00
11 0.00
12 0.00
13 0.00
14 0.00
17 0.00
18 0.00
19 PA 53103 5,404.61 1,391.69 1,663.26 8,459.56
20 0.00
21 0.00
24 0.00
25 0.00
26 0.00
27 0.00
28 0.00
31 0.00
--------- -------- --------- ------- --------- ---------
TOTAL 11,018.84 0.00 2,805.01 0.00 3,345.41 17,169.26
========= ======== ========= ======= ========= =========
- A-11 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 4 page 4/4
ILLINOIS, INDIANA, WISCONSIN AND NEW YORK WITHHOLDING TAX
MARCH 2008
----------
DATE REFERENCE CPI HANNA
PAID NUMBER CPI HANNA MGT MGT HQ TOTAL
---- ---------- -------- ------- ------- ------- -------- -------
MAR
03 0.00
04 0.00
05 IL 97333 2,094.76 1,872.94 3,967.70
06 0.00
07 0.00
10 0.00
11 0.00
12 IL 75610 1,971.98 1,971.98
13 0.00
14 WI 06003660446 714.25 422.45 1,136.70
17 0.00
18 0.00
19 IL 52925 1,936.04 1,686.94 3,622.98
20 IN 97418 68.54 68.54
21 0.00
24 0.00
25 0.00
26 IL 91311 1,986.55 1,986.55
27 0.00
28 0.00
31 WI 07303685789 696.04 422.90 1,118.94
----- -------- ----- -------- ------- ---------
TOTAL 0.00 9,399.62 0.00 4,405.23 68.54 13,873.39
===== ======== ===== ======== ======= =========
- A-12 -
REUNION INDUSTRIES, INC. CASE NO. 07-50727(AHWS)
MONTHLY OPERATING REPORT - 5
ACCOUNTS RECEIVABLE AND TAXES AGING
AS OF MARCH 31, 2008
--------------------
($ Amounts in 000's)
TRADE ACCOUNTS RECEIVABLE RECONCILIATION:
----------------------------------------
Trade Receivables - beg of month $ 7,425
Plus: Invoiced during the month 5,386
Less: Amounts collected (3,691)
------
Trade Receivables - end of month $ 9,120
======
ACCOUNTS RECEIVABLE AGINGS:
---------------------------
0-30 $ 5,455
31-60 2,541
61-90 567
91+ 557
------
Total trade receivables 9,120
Non-trade receivables 36
Less: Reserve for bad debts (128)
------
Net Receivables - per balance sheet $ 9,028
======
TAXES PAYABLE
-------------
Taxes from late March payrolls - paid in April $ 78
===
- 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
MARCH 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 $ 6,000
Charles E. Bradley Director fees $ 9,833 $ 39,332
Thomas L. Cassidy Director fees $ 1,500 $ 6,000
David E. Jackson Director fees $ 1,500 $ 6,000
Joseph C. Lawyer Director fees $ 4,625 $ 18,500
John G. Poole Director fees $ 5,000 $ 20,000
Kimball J. Bradley, CEO Salary $32,627 $130,508
John M. Froehlich, CFO Salary $18,255 $ 73,020
Thomas J. Vogel, VP Salary $ 9,350 $ 37,400
PROFESSIONALS:
--------------
TOTAL
DATE OF PAID THIS TOTAL INCURRED
COURT AMOUNT PERIOD PAID TO AND
ORDER APPROVED AMOUNT DATE UNPAID
------- -------- --------- ------- ---------
Lincoln International 1/24/08 $65,445 $65,445
Reid and Riege, PC 11/28/07 $96,489 $95,428
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 $ 39,181 $ 39,181 $ 0
Paradigm Capital $ 11,031 $ 11,031 $ 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
MARCH 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 received from Wachovia Bank re: DIP Financing
- A-15 -
19293.000/451396.1