UNITED STATES BANKRUPTCY COURT
Southern DISTRICT OF Indiana
Indianapolis Division
In Re. GREGG APPLIANCES, INC.
§
§
§
§
Case No. 17-01303
Lead Case No. 17-01302
Debtor(s)
☒ Jointly Administered

Monthly Operating Report
Chapter 11


Reporting Period Ended: 09/30/2022
Petition Date: 03/06/2017

Months Pending: 68
Industry Classification:
4
4
3
1

Reporting Method:
 Accrual Basis ☒ Cash Basis ☐
Debtor's Full-Time Employees (current): 1
Debtor's Full-Time Employees (as of date of order for relief):
 3,500

Supporting Documentation (check all that are attached):
(For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor)
☒ Statement of cash receipts and disbursements
☒ Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit
☒ Statement of operations (profit or loss statement)
☐ Accounts receivable aging
☐ Postpetition liabilities aging
☐ Statement of capital assets
☐ Schedule of payments to professionals
☐ Schedule of payments to insiders
☒ All bank statements and bank reconciliations for the reporting period
☐ Description of the assets sold or transferred and the terms of the sale or transfer
/s/ Jeffrey A. Hokanson
Jeffrey A. Hokanson
Signature of Responsible Party
Printed Name of Responsible Party
10/20/2022

Date
Ice Miller LLP
One American Square, Suite 2900
Indianapolis, IN 46282
Address


STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R. § 1320.4(a)(2) applies.
1
Debtor's Name
 GREGG APPLIANCES, INC. Case No. 17-01303

Part 1: Cash Receipts and Disbursements
Current Month
Cumulative

a. Cash balance beginning of month
$5,145,425
b. Total receipts (net of transfers between accounts)
$109
$36,514,501
c. Total disbursements (net of transfers between accounts)
$16,291
$154,344,230
d. Cash balance end of month (a+b-c)
$5,129,243
e. Disbursements made by third party for the benefit of the estate
$0
$0
f. Total disbursements for quarterly fee calculation (c+e)
$16,291
$154,344,230
Part 2: Asset and Liability Status Current Month
(Not generally applicable to Individual Debtors. See Instructions.)

a. Accounts receivable (total net of allowance)
$5,954,425
b. Accounts receivable over 90 days outstanding (net of allowance)
$5,954,425
c. Inventory (Book ☐ Market ☐ Other ☒ (attach explanation))
$0
d. Total current assets
$18,561,317
e. Total assets
$18,561,317
f. Postpetition payables (excluding taxes)
$10,238,826
g. Postpetition payables past due (excluding taxes)
$10,238,340
h. Postpetition taxes payable
$936,345
i. Postpetition taxes past due
$936,244
j. Total postpetition debt (f+h)
$11,175,171
k. Prepetition secured debt
$0
l. Prepetition priority debt
$0
m. Prepetition unsecured debt
$191,198,908
n. Total liabilities (debt) (j+k+l+m)
$202,374,079
o. Ending equity/net worth (e-n)
$-183,812,762

Part 3: Assets Sold or Transferred

Current Month Cumulative
a. Total cash sales price for assets sold/transferred outside the ordinary
course of business
$0
$9,514,845
b. Total payments to third parties incident to assets being sold/transferred
outside the ordinary course of business
$0
$443,274
c. Net cash proceeds from assets sold/transferred outside the ordinary
course of business (a-b)
$0
$9,071,571

Part 4: Income Statement (Statement of Operations)
(Not generally applicable to Individual Debtors. See Instructions.)
Current Month
Cumulative
a. Gross income/sales (net of returns and allowances)
$0
b. Cost of goods sold (inclusive of depreciation, if applicable)
$0
c. Gross profit (a-b)
$0
d. Selling expenses
$0
e. General and administrative expenses
$-17,504
f. Other expenses
$109
g. Depreciation and/or amortization (not included in 4b)
$0
h. Interest
$0
i. Taxes (local, state, and federal)
$0
j. Reorganization items
$0
k. Profit (loss)
$-17,394
$-111,538,122

2
Debtor's Name
 GREGG APPLIANCES, INC. Case No. 17-01303

Part 5: Professional Fees and Expenses


a.
Approved Current Month
Approved
Cumulative
Paid Current
Month
Paid
Cumulative
Debtor's professional fees & expenses (bankruptcy) Aggregate Total
$0
$12,687,363
$0
$17,613,002
Itemized Breakdown by Firm
Firm Name
Role
i
MORGAN, LEWIS & BOCKIU
Lead Counsel
$0
$2,778,932
$0
$2,519,564
ii
STIFEL, NICOLAUS & COMP
Financial Professional
$0
$0
$0
$700,000
iii
BERKELEY RESEARCH GRO
Financial Professional
$0
$2,423,421
$0
$2,394,421
iv
DONLIN, RECANO & COMPA
Other
$0
$0
$0
$1,366,297
v
ICE MILLER LLP
Local Counsel
$0
$2,007,146
$0
$1,992,794
vi
BINGHAM GREENBAUM DO
Special Counsel
$0
$234,875
$0
$212,658
vii
COOLEY LLP
Special Counsel
$0
$2,557,805
$0
$2,567,066
viii
PROVINCE, INC.
Financial Professional
$0
$556,352
$0
$583,198
ix
DLA PIPER LLP US
Other
$0
$5,452
$0
$2,549,550
x
FAEGRE DRINKER BIDDLE
Special Counsel
$0
$0
$0
$424,058
xi
CHOATE HALL & STEWART
Special Counsel
$0
$0
$0
$902,972
xii
ASK LLP
Other
$0
$0
$0
$675,000
xiii
GREAT AMERICAN GROUP
Other
$0
$0
$0
$368,689
xiv
GAVIN SOLMENESE LLC
Other
$0
$136,472
$0
$21,648
xv
CHIPMAN BROWN CICERO
Special Counsel
$0
$1,986,908
$0
$335,087


b.

c.
Approved Current Month
Approved
Cumulative
Paid Current
Month
Paid
Cumulative
Debtor's professional fees & expenses (nonbankruptcy) Aggregate Total




Itemized Breakdown by Firm


Firm Name
Role
i






ii






All professional fees and expenses (debtor & committees)





Part 6: Postpetition Taxes

Current Month
Cumulative
a. Postpetition income taxes accrued (local, state, and federal)
$0
$0
b. Postpetition income taxes paid (local, state, and federal)
$0
$0
c. Postpetition employer payroll taxes accrued
$256
$2,392,026
d. Postpetition employer payroll taxes paid
$-236
$-2,831,406
e. Postpetition property taxes paid
$0
$0
f. Postpetition other taxes accrued (local, state, and federal)
$0
$0
g. Postpetition other taxes paid (local, state, and federal)
$0
$0

Part 7: Questionnaire - During this reporting period:

a. Were any payments made on prepetition debt? (if yes, see Instructions)
Yes ☐ No ☒
b. Were any payments made outside the ordinary course of business
Yes ☐ No ☒
without court approval? (if yes, see Instructions)
c. Were any payments made to or on behalf of insiders?
Yes ☐ No ☒

3
Debtor's Name
 GREGG APPLIANCES, INC. Case No. 17-01303

d. Are you current on postpetition tax return filings?
Yes ☒ No ☐
e. Are you current on postpetition estimated tax payments?
Yes ☒ No ☐
f. Were all trust fund taxes remitted on a current basis?
Yes ☒ No ☐
g. Was there any postpetition borrowing, other than trade credit?
Yes ☐ No ☒
(if yes, see Instructions)
h. Were all payments made to or on behalf of professionals approved by
Yes ☒ No ☐ N/A ☐
the court?
i. Do you have: Worker's compensation insurance?
 Yes ☒ No ☐
If yes, are your premiums current?
Yes ☒ No ☐ N/A ☐ (if no, see Instructions)
Casualty/property insurance?
Yes ☒ No ☐
If yes, are your premiums current?
Yes ☒ No ☐ N/A ☐ (if no, see Instructions)
General liability insurance?
 Yes ☒ No ☐
If yes, are your premiums current?
 Yes ☒ No ☐ N/A ☐ (if no, see Instructions)
j. Has a plan of reorganization been filed with the court?
 Yes ☐ No ☒
k. Has a disclosure statement been filed with the court?
Yes ☒ No ☐
l. Are you current with quarterly U.S. Trustee fees as
Yes ☒ No ☐
set forth under 28 U.S.C. § 1930?

Part 8: Individual Chapter 11 Debtors (Only)

a. Gross income (receipts) from salary and wages
$0
b. Gross income (receipts) from self-employment
$0
c. Gross income from all other sources
$0
d. Total income in the reporting period (a+b+c)
$0
e. Payroll deductions
$0
f. Self-employment related expenses
$0
g. Living expenses
$0
h. All other expenses
$0
i. Total expenses in the reporting period (e+f+g+h)
$0
j. Difference between total income and total expenses (d-i)
$0
k. List the total amount of all postpetition debts that are past due
$0
l. Are you required to pay any Domestic Support Obligations as defined by 11
Yes ☐ No ☒
U.S.C § 101(14A)?
m. If yes, have you made all Domestic Support Obligation payments?
Yes ☐ No ☐ N/A ☒

4
Debtor's Name
 GREGG APPLIANCES, INC. Case No. 17-01303
Privacy Act Statement
28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F).
I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate.
/s/ Kevin Kovacs
Kevin Kovacs
Signature of Responsible Party
Printed Name of Responsible Party
Chief Financial Officer
10/20/2022
Title
Date


5
Gregg Appliances, Inc.
DEBTORS AND DEBTORS IN POSSESSION
Condensed Consolidated Statement of Income (unaudited)

For the Period of
September 1, 2022 to
(In Thousands)
September 30, 2022
Net Sales
$
-
Cost of Goods Sold
-
Gross Profit/(Loss)

-
Operating Expenses:
Advertising Expense, Net
-
Occupancy Costs
1
Data Communications
-
Repair and Maintenance
-
Company Insurance (Non-Medical)
0
Employee Benefits
0
Wage Expense
3
Employee Services
0
Travel and Entertainment
 -
Bank Transaction Fees
-
Professional Fees
1
Stock Compensation Expense (Benefit), Net
-
Gain/Loss on Early Extinguishment of Debt
-
Depreciation and Amortization
-
Administrative and Sales Expense
12
Product Services Expense
-
Bad Debts
-
Total Operating Expenses
18
Operating Income/(Loss)
$
(18
)
Interest Expense, net
-
Other Income/(Expense)
0
Income Before Taxes
$
(17
)
Income Tax Expense/(Benefit)
-
Net Income/(Loss)
$
(17
)


Gregg Appliances, Inc.
DEBTORS AND DEBTORS IN POSSESSION
Condensed Consolidated Balance Sheet (unaudited)

As of
(In Thousands)
9/30/2022
Assets
Cash
5,129
Credit Card and Trade Accounts Receivable, Net
5,954
Accounts Receivable - Other
7,453
Merchandise Inventories
-
Prepaid Expenses and Other Assets
25
Income Taxes Receivable
-
Total Current Assets
18,561
Property and Equipment, Net
-
Capitalized Financing Fees, Net
-
Goodwill
-
Trademarks, Net
-
Other Assets, Net
-
Total Assets
$
18,561
Liabilities and Stockholders' Deficit
Accounts Payable
8,013
Oustanding Customer Deposits, Credits, Refunds
1,560
Unredeemed Gift Card Liability
15
Other Accrued Expenses
1,247
Deferred Tax Liability
-
DIP Loans
-
Total Current Liabilities
$
10,834
Deferred Rent
-
LT Deferred Compensation
234
Other Long-term Liabilities
107
Liabilities Subject to Compromise
191,199
Total Liabilities
$
202,343
Preferred Stock
-
Common Stock
4
Accumulated Deficit
(338,364
)
T)reasury Stock
(150,228
)
Additional Paid-in Capital
304,775
Total Stockholders' Deficit
$
(183,813
)
Total Liabilities and Stockholders' Deficit
$
18,561

Gregg Appliances, Inc.
DEBTORS AND DEBTORS IN POSSESSION
Condensed Consolidated Statement of Cash Flows (unaudited)

For the Period of
September 1, 2022 to
(In Thousands)
September 30, 2022
Cash flows from operating activities:
Net cash provided by (used in) operating activities

$
(16
)
Cash flows from investing activities:
Purchases of property and equipment
-
Proceeds from sale of property and equipment
-
Other
-
Net cash used in investing activities
-
Cash flows from financing activities:
Net Borrowings (Repayments) on Debt Facility
-
-
Increase/(decrease) in cash and cash equivalents
(16
)
Cash and cash equivalents at beginning of period
5,145
Cash and cash equivalents at end of period
$
5,129


Gregg Appliances, Inc.
DEBTORS AND DEBTORS IN POSSESSION
Bank Reconciliations (unaudited)

(In Thousands)

G/L Acct
Account Name
Bank Acct #
Debtor
Description
Bank Balance
ADD: Deposits not credited
LESS: Outstanding Checks
ADD / (LESS): Other Reconciling Items
Ledger Balance
As of Date
Reconciled
1000
Master Operating Account
xxxxx9174
Gregg Appliances, Inc.
Operating Account

$
 27
 $
-

$
-
$
-
$
 27
9/30/2022
Yes
1001
Corporate Account
xxxxx9505
Gregg Appliances, Inc.
Corporate AR deposit account, All retail locations depository account

$
-
$
-

$
-
$
-

$
-
9/30/2022
Yes
1016
Cash Concentration
xxxxx9455
Gregg Appliances, Inc.
Cash Dominion

$
 5,102 $
-

$
-
$
-

$ 5,102
9/30/2022
Yes
1051
Disbursements
xxxxx9729
Gregg Appliances, Inc.
Checking

$
-
 $
-

$
-
$
-

$
-
9/30/2022
Yes




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hhgregg Inc. published this content on 26 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2022 21:03:02 UTC.