MOST RECENT FINANCIAL REPORT
The Colonial BancGroup, Inc.
Attachment to Operating Report
3/1 – 3/31/2010
Financial Reports:
There were no internal financial reports prepared for the reporting period March 1 –
March 31, 2010.
DISCLAIMER:
The Colonial BancGroup, Inc. (the “Debtor”) cautions investors and potential investors in
the Debtor not to place undue reliance upon the information contained in this Monthly
Operating Report, which was not prepared for the purpose of providing the basis of an
investment decision relating to any of the securities of the Debtor. The Monthly
Operating Report is limited in scope, covers a limited time period and has been prepared
solely for the purpose of complying with the monthly operating requirements of the
Bankruptcy Court and the Bankruptcy Administrator. The Monthly Operating Report
was not audited or reviewed by independent accountants; does not purport to present the
financial statements of the Debtor in accordance with generally accepted accounting
principles; does not purport to present the market value of any of the Debtor’s assets or
liabilities or the recoverability of any of those assets; is in a format prescribed by
applicable bankruptcy law; and is subject to future adjustment and reconciliation. There
can be no assurance that, from the perspective of an investor or potential investor in the
Debtor’s securities, the Monthly Operating Report is accurate or complete. Results set
forth in the Monthly Operating Report should not be viewed as indicative of future
results. This disclaimer applies to all information contained herein. The Debtor reserves
all rights to amend the results presented in this Monthly Operating Report.
On August 25, 2009 (the “Petition Date”), the Debtor commenced a voluntary case under
Chapter 11 of title 11 of the United States Code with the United States Bankruptcy Court
for the Middle District of Alabama. On or about August 14, 2009, of the Debtor’s wholly
owned bank subsidiary, Colonial Bank, was closed by the Alabama State Banking
Department, and the Federal Deposit Insurance Corporation (the “FDIC”) was appointed
as receiver of Colonial Bank. Subsequent to the closure, Branch Banking & Trust
Company ("BB&T"), in a transaction facilitated by the FDIC, acquired substantially all
of the assets of Colonial Bank, including certain books and financial records jointly
maintained by the Debtor and Colonial Bank that were seized by the FDIC and, on
information and belief, transferred to the custody of BB&T. As a result, the Debtor is not
in control of certain information relating to its pre-petition operations and financial
affairs, including material accounting information. In addition, as of the date of the
acquisition by BB&T, several employees of the Debtor became employees of BB&T.
This Monthly Operating Report is prepared, in large part, based upon the information and
work product made available to the Debtor by past employees of Colonial Bank and other
third parties. The results set forth in this Monthly Operating Report are being
investigated further and may vary from the results listed in this Monthly Operating
Report.
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Monthly Operating Report - Exhibit A
EXHIBIT A
TAXES
IF ANY PAST DUE TAX RETURNS OR PAST DUE POST-PETITON TAX OBLIGATONS
EXIST, ATTACH A WRITTEN EXPLANATION, INCLUDING WHEN SUCH RETURNS WILL
BE FILED, OR WHEN SUCH PAYMENTS WILL BE MADE AND THE SOURCE OF FUNDS
FOR THE PAYMENTS (S).
See attached schedule
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The Colonial BancGroup, Inc.
Exhibit A
Taxes
The Colonial BancGroup, Inc. and subsidiaries were assessed certain final assessments of Financial Institution
Excise Taxes by the State of Alabama on August 14, 2009 the date that Colonial Bank was placed into
receivership. The tax assessments were for prior year tax returns which were timely filed. The parent
company, Colonial BancGroup, disputes the taxes assessed and has filed a motion under Section 505.
Below is a summary of the State of Alabama assessments:
Taxes and Interest
Tax Year Amount
2007 $ 2,887,050.82
2006 2,534,635.98
2005 752,747.01
2004 99,050.34
2003 535,322.43
2002 739,371.74
2001 1,533,170.71
total $ 9,081,349.03
The Colonial BancGroup, Inc.'s 2008 income tax returns have been filed for both federal and state taxes.
Below is a summary of 2008 income tax refunds and income tax payables. Colonial BancGroup is unable to pay
the income taxes due to Texas and Idaho because of the bankruptcy filing and the FDIC action causing a freeze
on BancGroup's cash accounts.
Amount
Receivable (Payable)
Federal $ 930,553.00
State
ID $ ( 450.00)
TN 73,552.00
TX ( 120,850.00)
$ 882,805.00
Tax Refunds Received (deposited in Tax Escrow Account)
3/4/2010 $ 98,783.93 State of Alabama - Privilege Tax Refund
Ongoing Tax Review
The Debtor has obtained Court approval to retain tax professionals regarding the Debtor's tax obligations and potential
refunds. Debtor anticipates filing amended returns requesting refunds from prior years. Any funds received will be
deposited in a separate account and ownership will be subjected to Court determination.
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Monthly Operating Report - Exhibit B
EXHIBIT B
SUMMARY OF CASH ON HAND
ATTACH A LIST OF ALL INCOME RECEIVED FOR THE REPORTING PERIOD FROM
CASH AND CREDIT TRANSACTIONS.
The U.S. Bankruptcy Administrator (MDAL) will not waive this requirement.
See attached schedule
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The Colonial BancGroup, Inc.
Exhibit B
Cash on Hand
Name of Account Bank Account Number Balance
Colonial BancGroup, Inc. - DIP Sterling Bank xxxxxx158-8 $140,325.73
Colonial BancGroup, Inc. - DIP Account Regions Bank xxxxxx6325 $2,065,011.21
Colonial BancGroup, Inc. - DIP Account Regions Bank xxxxxx6333 $145,306.62
Colonial BancGroup, Inc. - DIP Tax Escrow Regions Bank xxxxxx6562 $98,829.33
Petty Cash n/a $0.00
$2,449,472.89
The Colonial BancGroup, Inc. - DIP BB&T (Colonial Bank) xxxxxx3234 $0.00 (2)
The Colonial BancGroup, Inc. - DIP BB&T (Colonial Bank) xxxxxx1127 12,458,207.89
The Colonial BancGroup, Inc. - DIP BB&T (Colonial Bank) xxxxxx5437 4,000,000.00
The Colonial BancGroup, Inc. - DIP BB&T (Colonial Bank) xxxxxx5460 5,091,170.82
The Colonial BancGroup, Inc. - DIP BB&T (Colonial Bank) xxxxxx5452 5,045,815.06
The Colonial BancGroup, Inc. - DIP BB&T (Colonial Bank) xxxxxx5445 2,282,904.24
The Colonial BancGroup, Inc. - DIP BB&T (Colonial Bank) xxxxxx3218 7,607,409.38
$36,485,507.39 (1)
(1) On August 14, 2009, the FDIC placed a hold on all cash deposits of Colonial BancGroup.
BancGroup is unable to access its cash deposits (except for those amounts released per
bankruptcy court order). On September 30, 2009 $241,450.00 was transferred
to the Sterling Bank Account, $200,000.00 to Parker Hudson Rainer & Dobbs and
$90,000.00 to Balch & Bingham. On October 30, 2009 $458,550.00 was transferred
to the Sterling Bank Account, $395,000.00 to Parker Hudson Rainer & Dobbs and
$40,000.00 to Balch & Bingham. On March 19, 2010, $500,000.00 was transferred
to the Regions 6325 Bank Account.
(2) Account xxxxxx3234 closed in September, 2009.
Note: The cash summary does not include investments held in Schwab of approximately $1.9 million which
may include some amount of cash.
Cash received during the reporting period 3/1 - 3/31/2010.
State of Alabama - Privilege Tax refund $98,783.93
Interest on Regions Bank Accounts $1,153.26
$99,937.19
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Monthly Operating Report - Exhibit C form revised 05 27 2009
EXHIBIT C
EXPENSES
ATTACH A LIST OF ALL EXPENSES PAID FROM THE DEBTOR'S BANK ACCOUNTS
FOR THE REPORTING PERIOD. INCLUDE THE DATE PAID, THE PAYEE, THE
PURPOSE AND THE AMOUNT.
The U.S. Bankruptcy Administrator (MDAL) will not waive this requirement.
See attached schedule
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The Colonial BancGroup, Inc.
Exhibit C
Expenses Paid
Date Paid Check # Payee $ Amount Purpose
Sterling Bank Account xxxxxx158-8
3/1/2010 1008 Parker Hudson Rainer & Dobbs, LLP 174,196.61 January legal fees and expenses
3/1/2010 1009 Moore Stephens Tiller 13,359.56 January fees
3/1/2010 1010 Simuel Sippial, Jr. 15,000.00 Court approved salary of Chairman - Sept., Oct. 2009
3/15/2010 1011 Void 0.00
3/15/2010 1012 Tennessee Department of Revenue 100.00 Annual Tennessee filing 2009 Tax Return
Total payments from Sterling Account 202,656.17
Regions Bank Account xxxxxx6325
3/1/2010 1001 Burr & Forman 58,616.46 Legal fees and expenses to January, 2010
3/18/2010 1002 Balch & Bingham 33,868.44 Legal fees and expenses to January, 2010
3/19/2010 Regions Bank 15.00 Wire transfer fee
3/22/2010 1003 Colonial Insurance Agency, Inc. $ 6,754.00 Contents and Liability Insurance
Total payments from Regions Account 99,253.90
Professional Fees Paid To Date
9/30/2009 Parker Hudson Rainer & Dobbs, LLP 200,000.00 Wire from Colonial Acct xxxxxx1127
9/30/2009 Balch & Bingham 90,000.00 Wire from Colonial Acct xxxxxx1127
10/30/2009 Parker Hudson Rainer & Dobbs, LLP 395,000.00 Wire from Colonial Acct xxxxxx1127
10/30/2009 Balch & Bingham 40,000.00 Wire from Colonial Acct xxxxxx1127
11/3/2009 Burr & Forman, LLP 122,500.00 Check #1004 from Sterling Acct xxxxxx158-8
11/4/2009 Shulte Roth & Zable, LLP 122,500.00 Wire from Sterling Acct xxxxxx158-8
Jan-10 Shulte Roth & Zable, LLP 198,329.66 Wire from PHRD Escrow Account
Jan-10 Parker Hudson Rainer & Dobbs, LLP 266,618.49 Retained from insurance refund proceeds
Feb-10 Parker Hudson Rainer & Dobbs, LLP 30,807.49 Retained from partnerships sale proceeds
2/18/2010 Burr & Forman, LLP 29,827.42 Check #1061 from Sterling Acct xxxxxx158-8
3/1/2010 Parker Hudson Rainer & Dobbs 174,196.61 Check #1008 from Sterling Acct xxxxxx158-8
3/1/2010 Moore Stephens Tiller 13,359.56 Check #1009 from Sterling Acct xxxxxx158-8
3/1/2010 Burr & Forman, LLP 58,616.46 Check #1001 from Regions Acct xxxxxx6325
3/18/2010 Balch & Bingham 33,868.44 Check #1002 from Regions Acct xxxxxx6325
Total Professional Fees Paid to Date 1,775,624.13
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Monthly Operating Report - Exhibit D
EXHIBIT D
UNPAID BILLS
ATTACH A LIST OF ALL DEBTS (INCLUDING TAXES) INCURRED SINCE THE
BANKRUPTCY FILING DATE BUT HAVE NOT BEEN PAID. THE LIST MUST INCLUDE
THE DATE THE DEBT WAS INCURRED, THE NAME OF THE CREDITOR, THE PURPOSE
OF THE DEBT AND WHEN THE DEBT IS DUE.
The U.S. Bankruptcy Administrator (MDAL) will not waive this requirement.
Debtor continues to review its obligations - see attached
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The Colonial BancGroup, Inc.
Exhibit D
Unpaid bills
A. Unpaid Invoices
Date incurred Vendor Name $ Amount Due Date Purpose
8/28/2009 BB&T 169.65 8/28/2009 error in reimbursement of expense
$ 169.65
Note: The Debtor has ongoing obligations for the payment of fees and expenses retained by both the Debtor and Creditor's Committee, all of
which are subject to Court approval.
B. Disputed Invoices
Date incurred Vendor Name $ Amount Due Date Purpose
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Monthly Operating Report - Exhibit E
EXHIBIT E
MONEY OWED TO DEBTOR
ATTACH A LIST OF ALL AMOUNTS OWED TO THE DEBTOR BY CUSTOMERS FOR
WORK COMPLETED OR MERCHANDISE SOLD. THE LIST MUST INCLUDE THE
NAME OF THE CUSTOMER, THE AMOUNT OWED AND WHEN PAYMENT IS DUE.
The U.S. Bankruptcy Administrator (MDAL) will not waive this requirement.
Debtor continues to research other debtor receivables - see attached
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The Colonial BancGroup, Inc.
Exhibit E
Debtor Receivables
Receivable from the FDIC $ 514,420.78
for expenses paid on behalf of Colonial Bank prior to 8/14/09
Note: The FDIC has notified the Debtor that it objects to this claim and the Debtor has therefore filed an act
Federal District Court disputing this objection.
Receivables from Director's for meetings not attended:
Lewis Beville 600.00
Robert Craft 5,500.00
Total Pre-petition Receivables $ 520,520.78
Note: While the Debtor does not have traditional trade accounts receivables, it does have intercompany
receivables from its primary subsidiary, Colonial Bank. The above-referenced receivable from Colonial Ban
primarily to expenses paid on behalf of Colonial Bank. The Debtor reserves the right to supplement this info
based on obtaining access to information and documents that are currently under the control of the FDIC as
of the receivership of Colonial Bank.
Please see Exhibit A re: anticipated tax refunds
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Monthly Operating Report - Exhibit F
EXHIBIT F
BANKING INFORMATION
When eFiling Exhibit F, please use the CM/ECF event:
Chapter 11 Exhibit F - Monthly Operating Report - Bank Statements (Private Entry)
ATTACH A COPY OF THE MOST RECENT BANK STATEMENT FOR EVERY ACCOUNT
THE DEBTOR HAS AS OF THE DATE OF THIS FINANCIAL REPORT OR HAD DURING
THE REPORTING PERIOD.
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Additional Information - Ch 11 Monthly Operating Report form revised 03 13 09
BALANCE SHEET For the period ending: 03/31/10
ASSETS
1. Cash
Pre-petition bank accounts $36,485,507.39
DIP General/business account $2,449,472.89
DIP Payroll account
DIP Tax account
Other (including Cash on Hand)
Sub-total Cash $38,934,980.28
2. Securities
3. Accounts Receivable
Pre-petition $520,520.78
Post-petition $0.00
Sub-total Accounts Receivable $520,520.78
4. Office Supplies and Equipment $0.00
5. Inventory (Fair Market Value) $0.00
6. Other Current Assets $0.00
7. Prepaid Insurance $0.00
8. Long Term Assets ( including real property, heavy
equipment, vehicles, etc. ) $4,520,121.35
9. TOTAL ASSETS $43,975,622.41
LIABILITIES (include both pre- and post-petition debts)
1. Accounts Payable
Pre-petition $362,757.31
Post-petition $169.65
Sub-total Accounts Payable $362,926.96
2. Short Term Notes Payable
Pre-petition
Post-petition
Sub-total Short Term Notes Payable
3. Long Term Notes Payable
Pre-petition $358,247,775.00
Post-petition
Sub-total Long Term Notes Payable $358,247,775.00
4. Taxes Payable
Pre-petition ($882,805.00)
Post-petition
Sub-total Taxes Payable ($882,805.00)
5. Other Liabilities $7,856,878.13
6. TOTAL LIABILITIES $365,584,775.09
EQUITY (Total Assets Less Total Liabilities) ($321,609,152.68)
7. TOTAL LIABILITIES & EQUITY $43,975,622.41
Additional Information
Balance Sheet/AP Pymts/
Salary Schedule/Rent Roll
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