Hemming Morse, Inc.

11160 Spear Street

Suile 1900
II T
i
"'one 1415) B36-4000
.tile 14151 m-2062
Sail Francisco, CA 94105 hmi@hemming.com
Celtificd Public AccoulTtants
VtigBlion end forensic CDnsultants

Frederick S_ Wyle, Esq.

Trustee in Bankruptcy

We have compiled the following financial statements, in accordance with Statements on

Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants, for the following Companies substantively consolidated in
bankruptcy including: a) Hamilton Taft & Company (a California corporation in
bankruptcy); b) Knightsbridge Cornpanies, Inc. (aTexas corporation in bankruptcy); c)
Rernington Companies, Inc. (a Texas corporation in bankruptcy); and d) Dresdner
Enterprises, Inc. (a Texas corporation in bankruptcy):

Consolidated Statement of Cash Receipts and Disbursements for the Cumulative

Post-Petition Periods ended September 15, 1999;

Consolidated Schedule of Cash Balances and Projected Disbursements as of

September 15, 1999

These financial statements have been prepared on the cash basis of accounting, which
is a comprehensive basis of accounting other than generally accepted accounting
principles.

The accompanying financial statements include both the consolidated Post-Petition

periods and the periods of Trustee adn-linistration for each debtor. For HarniHon Taft,
both of these periods begin on March 20, 1991 (even though the TJJJstee was not
appointed until March 26, 1991). The term 'Texas Debtors" is used in these financial
statements to refer to Knightsbridge Companies, Inc., Remington Companies, Inc. and
Dresdner Enterprises, Inc. For the Texas Debtors, the Post-Petition period begins on
April 19, 1991 for Knightsbridge and on April 29, 1991 for Remington and Dresdner
Enterprises. For the Texas Debtors, the period of Trustee administration begins on
July 22, 1991, which is when Frederick S. Wyle, Esq. was appointed as interim trustee.
The Trustee's appointment was made permanent on November 4, 1991 and also on
that date the Bankruptcy Court ordered the SUbstantive consolidation of Hamilton Taft
and the Texas Debtors. A Plan Of Reorganization for the bankruptcy estate has been
confirmed by Court Order entered on October 25, 1994.

000133
II San Francisco 1 Los Angeles
 1

Frederick S. Wyle
Trustee in Bankruptcy
Page Two

A compilation is limited to presenting, in the form of financial statements, information

that is available to the Trustee. We have not audited or reviewed the accompanying
finandal statements and supplementary information referred to above and, accordingly,
do not express an opinion or any other form of assurance on them.

As required by generally accepted accounting principles, a complete finandal statement

includes a statement of assets, liabilities and equity, a statement of cash flows and
substantive disclosures to further describe amounts included on the related financial
statements. These disclosures have not been induded with the accompanying
statements. If these disclosures and a statement of cash flows were included in the
financial statements, they might influence the user's conclusions about the Company's
financial position, results of operations, and cash flows. Accordingly, these financial
statements are not designed for those who are not informed about such matters.

1~~} 1116Y'-U,
September 2t, 1999
San Francisco, Califomia

000134
 Consolidated Hamilton Taft & Company and Texas Debtors
(A Group of Affiliated Companies In Bankruptcy)
Statement of Cash Receipts and Disbursements
Cumulative Post-Petition Periods Ended September 15, 1999
(See Accompanying Accountant's Compilation Report)

Exhibit Hamilton Taft Texas Debtors Canso lida ted Consolidated

Ref. To 10/31/91 To 10/31/91 Since 11/01/91 Total
Receipts:
Fidelity Bond gross recovery $47,500,000 $47,500,000
Peat Marwick gross recovery 17,500,000 17,500,000
Other litigation and claims recoveries 1-1 $25,000 25,734,158 25,759,158
Interest received $169,054 284 2,348,266 2.517,604
Other receipts 1-2 596,499 1,076,010 8,768,749 10,441,258
Total Receipts 765,553 1.101,294 101,851,173 103,718,020

Disbursements:
Bankruptcy administrative costs 29,118 29,118"\
Operating costs 1-3 1,040,032 587.163 3,205,726 4.832,921
Payment to Underwriters of Lloyds 4,915,879 4,915,879 >.-

~
Professional Fees: Trustee and Trustee's Professionals ~
Trustee's Attorneys 455,118 3,944,357 4,399,475-
Trustee's Attorneys: Fidelity Bond contingency fee 15,746,517 15,746,517 \ f
Trustee's Attorneys: Peat Marwick contingency fee 5,752,815 5,752,815 !, ~
-,- ~
Trustee's Accountants 173,696 674,681 848,377 ,
... ~
:
Trustee's Appraisers and Consultants 20,811 9,070 28,061 57,942 I.. ,J.
~
Trustee's fees 104,088 779,310 883,398
Professional Fees: Creditor's Committee 14,536 492,465 507,001
.
..
"\
t,~

~ ~.
Professional Fees: Debtor-in-Possession 13,516 67,753 81,269
,- t
t
Professional Fees: Petitioners 635,847 635,847
Settlement: Bank One furniture lease 188,945 188,945
U.S. Trustee fees 4,500 2,100 60,050 66,650
Subtotal 2,001,726 611,849 36,332,579 38,946, '154 i
"/
Bankruptcy Djstributions
Class 4 Creditors (Cumulative 67.25%) 69,323.644 69,328,644
Class 1 (100% Distribution) 38,391 38,391
Class 3 (100% Distribution), net of preference reserves 223,185 223,185
Employer payroll taxes on employee distributions 13.014 13,014
Stale dated, undeliverable distribution checks (14,247) (14,247)
Subtotal 69.583,987 69.583,987
Total Disbursements 2.001,726 611,849 105,916.566 108,530,14-1 ,

Excess (Disbursements) Receipts (1,236,173) 489,445 (4.065.393) (4,812.121)

Beginning Cash Balances 1-2 5,858,239 74.133 0 5.932.372

Transfer of Texas Debtors' cash balances 503,577 (503,577) 0
1ding Cash Balances 1-4 $5,125,643 $60,000 ($4.065,393) $1.120,251

EXHIBIT 1 000128
 Consolidated Hamilton Taft & Company and Texas Debtors
(A Group of Affiliated Companies In Bankruptcy)
Statement of Cash Receipts and Disbursements
Cumulative Post-Petition Periods Ended September 15,1999
(See Accompanying Accountant's Compilation Report)

Cumulative for Post-Petition Periods

Hamilton Taft Texas Debtors Consolidated Consolidated
To 10/31/91 To 10/31/91 Since 11/01/91 Total
Detail of Other Litigation and Claims Recoveries:
Recovered from Connie C. Armstrong, Jr. $25,000 $345,106 $370,106
AI-Ibrahim settlement 475,000 475,000
CIGNA settlement 1,800,000 1,800,000
Dresdner Petroleum, Inc. Bankruptcy distribution 134,429 134,429
Gulftex settlement payment received 38,888 38,888
Godwin, Carlton settlement 30,000 30,000
Grambling settlement 51,500 51,500
Hadid settlement 550.000 550,000
Bartl etuCoste II olLitch fi e Id settlem en ts 59,500 59,500
Paille settlement 5,000 5.000
Weir Brothers bankruptcy distribution 112,037 112,037
David McCall settlement 325,000 325,000
Meadow Owens settlement 400,000 400,000
?arker Automotive settlement 465,004 465,004
Preference settlement ~ 19,450,527 19,450,527
Rosenberg settlement 400,000 400,000
S & S Credit Corporation settlement 160,091 160,091
Sandia Corporation recovery 932,076 932,076

Total Litigation and Claim Recoveries $0 $25,000 $25,734,158 $25,759,158

EXHIBIT 1-1
000129
 Consolidated Hamilton Taft & Company and Texas Debtors
(A Group of Affiliated Companies In Bankruptcy)
Statement of Cash Receipts and Disbursements
Cumulative Post-Petition Periods Ended September 15, 1999
(See Accompanying Accountant's Compilation Report)

Cumulative for Post-Petition Periods

Hamilton Taft Texas Debtors Consolidated Consolidated
To 10/31191 To 10/31/91 Since 11/01/91 Total
Detail of Other Receipts:
Gross sale - real estate projects $711,250 $3,170,250 $3,881,500
Gross sale - ranch 4,300,000 4,300,000
Gross sale -livestock (HTC Ranch) $203,117 158,300 361,417
Gross sale - ranch equipment & vehicles 116,645 116,645
Gross sale - rodeo partnership interest 250,000 250,000
Gross sale - stadium box 210,000 210,000
Gross sale - vehicles 137,575 35,900 173,475
Gross sale - other assets 69,427 167,412 11,007 247,846
Expense reimbursements 42,990 42,990
Monthly service fees $32,109 3,735 35,844
Net customer funds (Tax Agency funds) 24,974 24,974
Returned customer checks (Pre-Petition) 97,455 97,455
Reimbursement-Ranch insurance claim 107,343 107,343
Receivables recovered through distribution offset 42,080 42,080
Recovery of Unclaimed Property 55,008 55,008
Recovery of costs allocated to other affiliates 143,554 143,554
Other receipts (including insurance and other refunds,
rental income, forfeited purchase deposits) 31,842 53,793 265,491 351,126

Total Other Receipts $596,499 $1,076,010 $B,768,749 $10,441,258

Detail of Beginning Cash Balances

Balance as of bankruptcy petition $5,856,509 $74,133 $5,930,642
Ranch cash balance as of August 1, 1991 1,730 1,730
Total Beginning Cash Balances $5,858,239 $74,133 $0 $5,932,372

EXHIBIT 1-2
000130
 Consolidated Hamilton Taft & Company and Texas Debtors
(A Group of Affiliated Companies In Bankruptcy)
Statement of Cash Receipts and Disbursements
Cumulative Post-Petition Periods Ended September 15,1999
(See Accompanying Accountant's Compilation Report)

Cumulative for Post-Petition Periods

Hamilton Taft Texas Debtors Consolidated Consolidated
To 10/31191 To 10/31/91 Since 11101191 Total

Detail of Operating Costs Pa.id:

Employee costs $445,270 $268,805 $531,802 $1,245.877
Employee costs - Ranch (Since 8/01/91) 37.136 196,317 233,453
Subtotal: Employee costs 482,406 268,805 728,119 1,479,330

Cost of sale -livestock 10,9.t.l3 10,943

Cost of sale - other assets 50,046 50,046
Cost of sale - ranch 260,748 260,748
Cost of sale - real estate projects 158,875 301,765 460,640
Cost of sale - Rodeo 557 567
Equipment leases 9,979 4,947 14,926
Insurance 78,741 193,693 272,434
litigation costs 0 234 446,338 446,571
Office supplies & expenses 11,873 30,699 23.179 65,752
Other costs of operations 192,096 36,397 4,800 233.293
Outside services 0 5,814 22,470 28,284
Penalty for early withdrawal 37,500 37,500
Portion of distribution returned OJ) behalf of DPI 4,340 4,340
Prepaid expenses & deposits 62,522 5,490 3,161 71.173
Property and equipment 1.814 15,030 16,844
PUblication costs 12,961 12,961
Ranch operating costs 16,114 288,408 304,522
Real Estate holding costs 51,589 51,589
Relocation costs 15,905 15,905
Rent 72,658 35.327 264,888 372,873
Return of reimbursed expenses 2,131 2,131
Taxes: Property & business 233,117 233,117
Telephone 15,573 9.875 13,372 38,820
Travel & auto expenses 17,453 B.954 26,407
Trustee's bond 600 46,925 47,525
Trustee's miscellaneous costs 6,401 12,195 18,596
Work-in-Process: Real Estate 12,647 242,437 255,084

Total operating costs paid $1,040,032 $587,163 $3,205,726 $4,832,921

EXHIBIT 1-3
000131
 Consolidated Hamilton Taft & Company and Texas Debtors
(A Group of Affiliated Companies In Bankruptcy)
Consolidated Schedule of Cash Balances
And Projected Disbursements as of September 15, 1999
(See Accompanying Accountant's Compilation Report)

Cash Balances
Operating Account Union Bank Account No. 2190000551 $1,114,582
Distribution Account: Union Bank Account No. 2190000004 5,669

Interest BearinG Accounts:

Union Bank Money Market Account No. 1270009308 Closed
Union Bank nme Deposit Account No. 2199001302 Closed
Cas h Balance - as of Septem ber 15, 1999 $1,120,251

Projected Disbursements
Professional Fees: Trustee and Trustee's Professionals
Feldman, Waldman & Kline 24,990
Shaver, Suntag & Feuerstein 6,149
Garfield & Hecht 7,090
Subtotal 38,229
Hemming Morse, Inc. 23,415
Frederick S. Wyle 19,988
Subtotal: Professional Fees 81,632

U.S. Trustee Fees 4,750

Advance payment for future Armstrong collection efforts 75,000
Contingency reserve 4,500
Subtotal: Projected Disbursements 165,882

Amount available for distribution to Class 4 Creditors $954,369

EXHIBIT 1-4
- -- -
000132
 ~
C\J
L:\UnHTAFn{DISTCUMjCum
.......
HAMILTON TAFT & COMPANY 0
0
Former Clients Included in Class 4 Claims 0
Claims Outstanding After Fifth (Final) Distribution
Class 4 Remaining
Combined Claims Accepted Cumulative Balance Due
Allowed Preference Combinl;d Distributions on Client
Client Claim Claim Claims Through Final Claims
Action Instruments Co .• Inc. $96.654 $10,243 $106.898 $67,430 $39,467
4 Advo-System, Inc. 1,796.288 1.196.288 1,220,872 575,416
Affiliated Computer Services, Inc. 49,100 4B,100 8,330 40,769
Air Cable. Inc. 24.966 24.966 16,969 7,998
All American Gourmet Company 509,441 509,441 86,434 423,007
Allen Foam Corporation 3,226 3,226 2,193 1.033
America West Airlines, Inc. 834,725 834}25 567,333 267,393
American Microsystems, Inc, 268,238 268,238 182,311 85,926
American Nukem Corporation 32,799 32,799 22,292 10,507
Analytikem 31,184 3'1,184 21,195 9,989
Argo Partners (Genstar) 518,023 51B,023 352,082 165,942
Argo Partners (Pullman) 686,112 686,112 466,325 219,786
Associated Coin Amusement Co. 10,219 10 219
1 6.945 3,273
Atlas Hotels Inc. 166,607 122.980 289,587 134,102 155,485
Balcor Payroll Company 12,211 12,211 8,300 3,912
Blue Cross & Blue Shield Of Texas 1! 145,074 673,873 1,818.947 892,597 926,349
Brinkmann Instruments 72.034 59.221 13'1,255 59,007 72,249
Brunswick Seat Company 1.097 '1,097 746 351
BW I LP International, Inc. 373.701 373,701 253,991 119,710
C & R Clothiers 324,523 324,523 220,567 103,956
California Pacific Medical Center 1J 102,264 549,990 1,652,255 842,483 809.772
Cartex Corporation 24.663 24,663 16,763 7,900
Chase Manhattan Mortgage Corporation 850 850 577 272
Chase Manhattan Mortgage Corporation 156 040
1 196.986 353.027 139,476 213,550
Claris Corporation 164.333 56.882 22-1,215 121,342 99,873
Clevite Bridgestone Co. 2.734 2,734 1,858 876
Coast Fedral Bank 112,144 112.144 19,027 93,118
Coherent, Inc. 335.973 335,973 57,002 278,971
Commerical Credit Corporation 3,454,766 3,454,766 586.149 2,868.617
Cavia Partnership 1,792,402 1,792,402 1,218,231 574.171
Customer Company 102.935 102,935 17,464 85.470
eyer-I/em 49,063 49,063 33,346 1'" --17
C) ::nergy Services 4.000 114,000 19,342
 l.l'1
~
l:\unHTAfTIIDISTCUM1Cum
~
HAMILTON TAFT & COMPANY Q
0
Former Clients Included in Class 4 Claims Q
Claims Outstanding After Fifth (Final) Distribution
Class 4 Remaining
Combined Claims Accepted Cumulative Balance Due
Allowed Preference Combined Distributions on Client
Client Claim Claim Claims Through Final Claims
Degussa Corporation 774,491 774,4'91. 526,394 248,098
Del Manufacturlng Company 22,851 22,851 15,531 7,320
Delaware Seat Company 14,905 14,905 10,131 4,775
Delhi Gas Pipeline Corporation 47,210 47,210 I 32,087 15.123
Diamond Walnut Growers, Inc. 81,866 81.866 13,890 67,978
Dole Foods (Castle & Cooke) 3,142,907 125,006 3,267,913 2,157,329 1,110,583
Donnelley Receivable Inc, 108 108 74 35
Dublin San Ramon Services Dist. 45,353 45,353 30,825 14,528
Electric Power Research Institute 117,734 232,167 349,901 119,410 230,491
ENSR Corporation Delaware 710,511 710,511 482,908 227,602
.. Federal Express Corporation 30,387,795 8,879,948 39,267,744 22,160,093 17,107.650
First Capital Ufe Insurance Co, 139,054 139,054 94,510 44,544
First Interstate Bank $306,127 $306,127 208,063 98,063
Glendale Adventist Medical Center 625,710 578,154 1,203,864 523,364 680,500
Guckenheimer Enterprises, Inc. 95,403 92,604 188,007 80.554 107,453
Guckenheimer Of Texas, Inc. 9,073 9,073 6,166 2,906
H.D. Hudson Manufacturing Co. 100,147 100.147 68,067 32,081
HBO & Company Of Georgia 421,925 421.925 286,767 135,158
Healthquest Ltd, 230,626 230,626 156,748 73,878
JBB Spirits Inc. 894 894 608 287
.. Jim Beam Brands Co. 157,863 55,747 213,610 116,752 96,858
Kay tea Rose Inc. 16,422 16,422 11,162 5,261
King Bearing, Inc. 237,832 237.832 40,352 197,481
Lucasarts Entertainment Co. 218,066 11,657 229,723 150,189 79,534
lucas firm, Lid. 21,432 21,432 14,567 6,866
Mabon, Nugent & Company 956,799 331.657 1,288,456 706,572 581,884
McCutchen, Doyle Brown 8. Enersen 100,960 100,960 68,619 32,341
Metromedia Company 61,317 61,317 41.675 19,642
Mills College 83,263 83.263 14,127 69,136
Monroe Systems For Business 660,778 660,778 449,107 211.671
Ml. Diablo Medical Center, Inc. 160,725 61.114 221,839 119,608 102,231
Natir-"l\ Data Corp. 84,148 84,148 57,192 ')C' -""6
NC' Union Fire Insurance Co. 10,145,712 10,145)12 6,695,674 3,2
 c.o
Ul!i\HTAFl\IOISTCUMICum
C\J
.,.....j
HAM1LTON TAFT & COMPANY 0
0
Former Clients Included in Class 4 Claims 0
Claims Outstanding After Fifth (Final) Distribution
Class 4 Remaining
Combined Claims Accepted Cumulative Balance Due
Allowed Combined Dlstrlbutlo ns on Client
Client Through Final Claims
NEC Electronics, Inc, 233,193 286,943
Neiman~Marcus Group, Inc. 553,251 1,129,769 1,683,020 567,706 1.115,314
Northland Plastics Inc. 7,235 7,235 4,917 2,318
Norwest Publishing Co. 45,237 45,237 30,746 14,491
Nukem Acquisition Corporation 80 80 54 25
Nukem Technologies Corp. 24,700 24,700 16.788 7,912
Oakland Athletics Baseball Company 90,499 201,359 291,858 95,672 196.185
Pay less Shoe Source 270,558 2,584,875 2,655,433 622,449 2,232,985
Polytechnic University 640,705 290,260 930,965 484,711 446.254
4 R.R. Dannelley & Sons Co. 4,270,423 21,406 4,291,829 2,906,084 1.385,7 45
Reckitt & Coleman Inc. 2,263,957 2,263,957 1,538,730 725,227
Richmond Wholesale Meal Co. 45,223 45,223 30,736 14,487
Riverside Seat Company. tnc. 16,829 16,329 11,438 5,391
Rochester Institute Of Technology 103,799 103,799 70,549 33,251
Rool·LoweU Manufacturing Co. 35,745 35,745 24,295 11,450
Ross Stores, Inc. 701,843 701,843 477,018 224,826
S & S Credit Companies, Inc. 158,930 9,428,449 9,587,378 1.707,686 7,879,692
SCM Chemicals, Inc. 207,834 161,498 369,332 168,658 200,674
SCM Metal, Inc. 49,347 37,661 87,008 39,929 47,079
• Scot! Paper Co. 253,807 253,807 172,504 81,304
Signet Armorlite, Inc. 50,106 108,434 158,540 52,453 106,088
Signetics Company 6,212,016 6,212,016 4,222,083 1,989,933
Sinai Hospital Of Oetrolt 1,378,310 695,032 2,073,342 1,054.709 1,018,633
Sinai Management Services Co. 17,658 17,658 12,002 5,657
Sitka Corporation 12,588 12,588 8,556 4,032
Sony Corporation Of America 563,774 563,774 383,177 180,597
SOS Environmental TechnOlogy 8,363 8,363 5,684 2,679
Southland Corp. Employees Trust 17B,993 178,993 121,655 57,338
Springfield Sugar & Products Co. 351,368 175,566 526,935 268,600 258,335
Springfield Terminal Rail. Co. 279,009 279,009 189,633 89,377
Stanford University Hospital 3,512,722 1,068,095 4,560,317 2,568,688 2,012,130
Stall" ~ar of California 36,787 185,174 221,961 56,420 161: <:41
St; \rkansas

a
45,465 45,465 30,901 \

.•., nf <1 Prr:,)n~ 71?1i(\f\

 ~
L:\UT1HTAFT1IDISTCUM}Cum N
~
HAMILTON TAFT & COMPANY 0
Former Clients Included in Class 4 Claims ~
0
Claims Outstanding After Fifth (Final) Distribution
Class 4 Remaining
Combined Claims Accepted Cumulative Balance Due
Allowed Preference Combined Distributions on Client
Client Claim Claim Claims Through Final Claims
Sun Microsystems Federal, Inc. 24,072 24,072. 16,361 7,711
Sun Microsystems Of California 3,071 3,071 2,087 984
Sun Microsystems, Inc. 791,228 791,228 537,769 253,459
Sun Microsytems Europe, Inc. 991 991 674 318
• Sunbelt Beverage Corp. 235,423 235,423 160,008 75,414
Sunsweet Growers, Inc. 13,141 13,141 8,931 4,210
Sybon Transition Corporation 8,803 8,803 5,983 2,820
T.D.S. Foods, Inc. 11,306 11,306 7,684 3,622
Tandem Computers, Inc. 2,036,652 5,240,057 7,276,709 2,273,287 5,003,422
Texas Oil & Gas Corporation 34,562 43,717 78,279 30,908 47,371
The Chronicle Publishing Co. 1,088,632 1,088,632 739,904 348,728
The Cooper Companies, Inc. 18,289 18,289 12,431 5,859
The EVB Company 27,318 48,935 76,253 26,870 49,383
• The Kendall Company 1,021,088 170,640 1,191,728 722,948 468,780
The Vintage Club 23,614 25,902 49,516 20.444 29,072
Thermalkem 57,304 57,304 38,947 18,356
Ungermann-Bass, Inc. 1,030,845 210,590 1,241,435 736,358 505,078
United Savings Bank 96,676 89,654 186,330 80,918 105,412
Verbatim Corporation 390,760 390,760 265,586 125,175
Waste Chern Corporation 22,386 22,386 15,215 7,171
WBF Technologies 421 421 286 135
William Marsh Rice University 829,202 361,364 1,190,565 624,889 565,677
Woodbridge Corp. 88,031 83,090 171,121 73,929 97,192
Woodbridge Foam Fabricating 18,529 18,529 12,593 5,935
Woodbridge Holdings, Inc. 458 458 312 147
Woodbridge INAOC, Inc. 30,779 30,779 20,920 9,860
Woodbridge Sales & Engineering 4286 11,286 2,913 1,373
Claims of Former Clients $90,0.46,313' $39,717,006- $129,763,319 $67,939,768 $61,823,550
,