Statement of Financial Affairs

388 Pages·2015·2.94 MB·English

15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 1 of
388
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE WESTERN DISTRICT OF TEXAS
SAN ANTONIO DIVISION

§
In re: § CHAPTER 7 CASE
§
JM OILFIELD SERVICE, INC. § CASE NO. 15-52159-CAG
§
Debtor §

STATEMENTS OF LIMITATIONS AND DISCLAIMERS REGARDING THE DEBTOR’S
SCHEDULE OF ASSETS AND LIABILITIES AND STATEMENT OF FINANCIAL AFFAIRS
The above-captioned debtor (the "Debtor") is filing its Schedule of Assets and Liabilities (the
“Schedules”) and Statement of Financial Affairs (the "Statements" and, with the Schedules, the “Schedules
and Statements”) in the United States Bankruptcy Court for the Western District of Texas (the "Bankruptcy
Court”). The Debtor, with the assistance of certain of their advisors, prepared the Schedules and Statements
in accordance with section 521 of title 11 of the United States Code (the "Bankruptcy Code") and Rule
1007 of the Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules").

These Statements of Limitations and Disclaimers Regarding the Debtor’s Schedule of Assets and
Liabilities and Statement of Financial Affairs (collectively, the "Limiting Statements") pertain to, are
incorporated by reference in, and comprise an integral part of, the Schedules and Statements. These
Limiting Statements should be referred to and reviewed in connection with any review of the Schedules
and Statements.

The Schedules and Statements have been prepared by James Boston, in his capacity as the sole
remaining officer and director of the Debtor on the Petition Date. In preparing the Schedules and
Statements, Mr. Boston relied on data and information derived from the Debtor’s books and records as were
available at the time of preparation. Due to the exigent financial circumstances which compelled the filing
of the Voluntary Petition, preparation of these Schedules and Statements of Affairs did not commence until
after the Petition Date. The ability to provide complete and accurate information in response to each inquiry
contained herein was hampered by the lack of employees who had responsibility for maintaining the
financial records of the Debtor and the Debtor’s efforts to secure its important business records at a remote
location and delivery of those records to the Trustee upon his appointment in this case. Finally, the Debtor’s
management as of the Petition Date took control over the Debtor’s affairs and operations on March 16,
2015 in an effort to turnaround the Debtor’s distressed financial situation. Management found the Debtor’s
financial records to be inaccurate, incomplete and seriously lacking in reliability.

As a result of these deficiencies, the Debtor is unable to provide comprehensive responses to
inquiries in these Schedules and Statements requiring information pre-dating March 16, 2015. Further,
while Mr. Boston and his advisors have made reasonable efforts to ensure that information contained in
these Schedules and Statements of Affairs is as accurate and complete as possible under the circumstances
based on the information available to them at the time of preparation, the Debtor lacked adequate
information needed to represent that the information contained herein is complete and entirely accurate.
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 2 of
388
Limiting Statements Control. Except where otherwise indicated, in the event that the Schedules
and Statements differ from the Limiting Statements; the Limiting Statements shall control.

Reservation of Rights. Nothing contained in the Schedules and Statements or these Limiting
Statements shall constitute a waiver of any of the Debtor’s rights or an admission with respect to this chapter
7 case, including, but not limited to, any issues involving objections to claims, equitable subordination,
defenses, characterization or recharacterization of contracts, assumption or rejection of contracts under the
provisions of chapter 3 of the Bankruptcy Code and/or causes of action arising under the provisions of
chapter 5 of the Bankruptcy Code or any other relevant applicable laws to recover assets or avoid transfers.

Amendment. Although reasonable efforts were made to file complete and accurate Schedules and
Statements, inadvertent errors or omissions may exist. Thus, the Debtor reserves the right to amend or
supplement its Schedules and Statements from time to time as may be necessary or appropriate.

Basis of Presentation. Although these Schedules and Statements may, at times, incorporate
information prepared in accordance with generally accepted accounting principles ("GAAP'), the Schedules
and Statements do not purport to represent that they were prepared in accordance with GAAP. Where the
value of assets is stated in the Schedules, the basis for the stated values is the book value stated in the
Debtor’s financial records, unless stated otherwise in the Schedules.

Undetermined Amounts. The description of an amount as “unknown” or “$0.00” is not intended
to reflect upon the materiality of such amount. Creditors identified as “Notice Only” were listed on the
Debtor’s Schedules and Creditor Matrix in an abundance of caution and to insure the broadest possible
notice to parties who have had prior dealings with the Debtor. The Debtor does not believe that it is indebted
to Notice Only creditors in any amount.

Wage Claims of Employees. The Debtor paid its hourly wage employees two weeks in arrears.
On the Petition Date a payroll for the preceding two weeks was due to employees. As of the Petition Date,
the Debtor was only in possession of employee time sheets for one of the two weeks for which payroll is
owed. The Debtor has no records reflecting employee hours worked for the second week for which payroll
is due. Accordingly, the Debtor cannot accurately state the amounts owed to employees for pre-petition
wages in Schedule E. Scheduling such employee claims as “Unknown” is not intended as an expression of
the amounts owed to employees; rather it reflects the lack of records required to calculate the wage claims
of employees.

Classifications. Listing a claim (a) on Schedule D as “secured,” (b) on Schedule E as “priority,”
(c) on Schedule F as “unsecured priority,” or (d) listing a contract or lease on Schedule G as “executory”
or “unexpired,” does not constitute an admission by the Debtors of the legal rights of the claimant or a
waiver of the Debtors' right to recharacterize or reclassify such claim or contract. Further, at the time of
the preparation of these Schedules, the Debtor’s advisors did not have access to the security agreements,
leases and other contracts and agreements governing the relationship of the Debtor with its equipment
lenders and lessors. Accordingly, Debtor has characterized all such relationships as “secured creditors”
and listed them on Schedule D.

Claims Description. Any failure to designate a claim on a given Debtor's Schedules as "disputed,"
"contingent," or "unliquidated" does not constitute an admission by the Debtor that such amount is not
"disputed," "contingent," or "unliquidated." The Debtor reserves all rights to dispute, or to any offsets or
defenses to, any claim reflected on its Schedules on any grounds, including, without limitation, amount,
liability, validity, priority, or classification, or to otherwise subsequently designate any claim as "disputed,"
"contingent," or "unliquidated." Listing a claim does not constitute an admission of liability by the Debtor,
and the Debtor reserves the right to amend the Schedules accordingly.
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 3 of
388

Causes of Action. The Debtor, has not listed all of its causes of action (filed or potential) against
third parties as assets in the Schedules and Statements. The Debtor reserves all of its rights with respect to
any causes of action it may have and neither these Limiting Statements nor the Schedules and Statements
shall be deemed a waiver of any such causes of action.

Schedule B Personal Property. All of the Debtor’s personal property was in one of the following
locations: (i) the Debtor’s office or yard in Gonzales, Texas; (ii) the Debtor’s yard in Three Rivers, Texas;
(iii) the Debtor’s office or yard in Quitman, Arkansas; and (iv) in certain limited instances, a small number
of vehicles or trucks were in the possession of employees pending return to the Trustee. The Debtor lacks
reliable information to provide meaningful estimates of the value of the vast majority of its personal
property and therefore has listed the value as unknown as applicable.

Schedule D - Creditors Holding Secured Claims. Except as otherwise agreed pursuant to a
stipulation and agreed order or general order entered by the Bankruptcy Court that is or becomes final, the
Debtor reserves the right to dispute or challenge the validity, perfection, or immunity from avoidance of
any lien purported to be granted or perfected in any specific asset to a creditor listed on Schedule D.
Moreover, although the Debtor may have scheduled claims of various creditors as secured claims for
informational purposes, no current .valuation of the Debtor’s assets in which such creditors may have a lien
has been undertaken.

Except as expressly waived by the Debtor or as provided by Court order, the Debtor reserves all
rights to dispute or challenge the secured nature of any such creditor's claim or the characterization of the
structure of any such transaction or any document or instrument related to such creditor's claim. The
descriptions in Schedule D are intended only to be a summary. Reference to any applicable loan agreement
and other relevant documents and a determination of the creditors' compliance with applicable law is
necessary for a complete description of the collateral and the nature, extent, and priority of any liens.
Nothing in the Limiting Statements or the Schedules and Statements shall be deemed a modification or
interpretation of the terms of such agreements or related documents. The claims listed on Schedule D arose
or were incurred on various dates and a determination of each date upon which each claim arose or was
incurred would be unduly burdensome. Accordingly, not all such dates are included for each claim. All
claims listed Schedule D, however, were incurred prior to the Petition Date.

Statements Question 3(b) and (c) - Payments to Creditors. As a result of the change of control
over the financial affairs of the Debtor as of March 16, 2015, current management of the Debtor lacks
adequate and accurate information regarding transfers to insiders prior to March 16, 2015. The Debtor’s
failure to list and transfer or payment to any insider prior to March 16, 2015 is not an admission that such
transfer or payment did not occur.
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 4 of
B6A (Official Form 6A) (12/07)
388
In re JM Oilfield Service, Inc. Case No. 15-52159
(if known)
SCHEDULE A - REAL PROPERTY
Current Value
of Debtor's
Description and Nature of Debtor's
Interest in
Location of Interest in Property
Property, Without Amount Of
Property
Deducting Any Secured Claim
Secured Claim
or Exemption
None
Total: $0.00
(Report also on Summary of Schedules)
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 5 of
B6B (Official Form 6B) (12/07)
388
In re JM Oilfield Service, Inc. Case No. 15-52159
(if known)
SCHEDULE B - PERSONAL PROPERTY
Current Value of
Debtor's Interest
in Property,
e Without Deducting
n
Type of Property o Description and Location of Property any Secured
N
Claim or
Exemption
1. Cash on hand. Cashiers Check #1049004788 - Payable to Indian Ink $23,650.03
Leasing - never given to payee

2. Checking, savings or other finan- Bank of America Acct ***1700 $0.00
cial accounts, certificates of deposit
or shares in banks, savings and loan, Bank of America Acct ***1713 $34,747.08
thrift, building and loan, and home-
stead associations, or credit unions, Bank of America Acct ***1726 $527.97
brokerage houses, or cooperatives.
Bank of America Acct***1739 $74,270.74

First Arkansas Bank and Trust Acct ***4294 $36,709.01

3. Security deposits with public util- Nations Equipment $535,000.00
ities, telephone companies, land-
lords, and others.
4. Household goods and furnishings, Household Furnishings located at 2502 Alamo, Gonzales, $8,207.78
including audio, video and computer TX (valued at cost)
equipment.
5. Books; pictures and other art pictures and art were removed from Quitman, AR offices on Unknown
objects; antiques; stamp, coin, August 31, 2015 after hours - value, if any, not known
record, tape, compact disc, and other
collections or collectibles.
6. Wearing apparel. X
7. Furs and jewelry. X
8. Firearms and sports, photo- X
graphic, and other hobby equipment.
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 6 of
B6B (Official Form 6B) (12/07) -- Cont.
388
In re JM Oilfield Service, Inc. Case No. 15-52159
(if known)
SCHEDULE B - PERSONAL PROPERTY
Continuation Sheet No. 1
Current Value of
Debtor's Interest
in Property,
e Without Deducting
n
Type of Property o Description and Location of Property any Secured
N
Claim or
Exemption
9. Interests in insurance policies. Unearned premium, if any, on 2015 Property and Casualty Unknown
Name insurance company of each insurance policies.
policy and itemize surrender or
refund value of each.
10. Annuities. Itemize and name X
each issuer.
11. Interests in an education IRA as X
defined in 26 U.S.C. § 530(b)(1) or
under a qualified State tuition plan
as defined in 26 U.S.C. § 529(b)(1).
Give particulars. (File separately
the record(s) of any such interest(s).
11 U.S.C. § 521(c).)
12. Interests in IRA, ERISA, Keogh, X
or other pension or profit sharing
plans. Give particulars.
13. Stock and interests in incorpo- X
rated and unincorporated businesses.
Itemize.
14. Interests in partnerships or joint X
ventures. Itemize.
15. Government and corporate bonds X
and other negotiable and non-
negotiable instruments.
16. Accounts receivable. Unfactored Accounts Receivable $1,721,755.00

Factor Reserve Account Unknown
Allied Affilliated Funding
5151 Beltline Road, Suite 500
Dallas, Texas 75254
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 7 of
B6B (Official Form 6B) (12/07) -- Cont.
388
In re JM Oilfield Service, Inc. Case No. 15-52159
(if known)
SCHEDULE B - PERSONAL PROPERTY
Continuation Sheet No. 2
Current Value of
Debtor's Interest
in Property,
e Without Deducting
n
Type of Property o Description and Location of Property any Secured
N
Claim or
Exemption
17. Alimony, maintenance, support, X
and property settlements to which the
debtor is or may be entitled. Give
particulars.
18. Other liquidated debts owed to IRS has sent notice of 941 tax overpayment of $71,000.00
debtor including tax refunds. Give approximately
particulars.
19. Equitable or future interests, life X
estates, and rights or powers exercis-
able for the benefit of the debtor other
than those listed in Schedule A - Real
Property.
20. Contingent and noncontingent X
interests in estate of a decedent, death
benefit plan, life insurance policy, or
trust.
21. Other contingent and unliqui- X
dated claims of every nature,
including tax refunds, counterclaims
of the debtor, and rights to setoff
claims. Give estimated value of each.
22. Patents, copyrights, and other X
intellectual property. Give
particulars.
23. Licenses, franchises, and other X
general intangibles. Give particulars.
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 8 of
B6B (Official Form 6B) (12/07) -- Cont.
388
In re JM Oilfield Service, Inc. Case No. 15-52159
(if known)
SCHEDULE B - PERSONAL PROPERTY
Continuation Sheet No. 3
Current Value of
Debtor's Interest
in Property,
e Without Deducting
n
Type of Property o Description and Location of Property any Secured
N
Claim or
Exemption
24. Customer lists or other compilations X
containing personally identifiable
information (as defined in 11 U.S.C.
§ 101(41A)) provided to the debtor by
individuals in connection with obtaining
a product or service from the debtor
primarily for personal, family, or
household purposes.
25. Automobiles, trucks, trailers, Trucks, Trailers and Vehicles reflected on Exhibit B-25 Unknown
and other vehicles and accessories.
26. Boats, motors, and accessories. X
27. Aircraft and accessories. X
28. Office equipment, furnishings, Miscelleneous office furniture, desktop computers, filing $2,000.00
and supplies. cabinets and related property (Estimated value - fully
depreciated on Debtor's books)

29. Machinery, fixtures, equipment, Miscellaneous tools and equipment not included in $5,000.00
and supplies used in business. Schedule B-25. Estimated market value of property fully
depreciated on Debtor' books.

3 Toughbook laptop computers and one license for truck $8,000.00
engine diagnostics - Estimated value

30. Inventory. Consumables for rolling stock - located in Gonzales, Three $15,000.00
Rivers, Texas and Quitman, Arkansas

31. Animals. X
32. Crops - growing or harvested. X
Give particulars.
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 9 of
B6B (Official Form 6B) (12/07) -- Cont.
388
In re JM Oilfield Service, Inc. Case No. 15-52159
(if known)
SCHEDULE B - PERSONAL PROPERTY
Continuation Sheet No. 4
Current Value of
Debtor's Interest
in Property,
e Without Deducting
n
Type of Property o Description and Location of Property any Secured
N
Claim or
Exemption
33. Farming equipment and X
implements.
34. Farm supplies, chemicals, and X
feed.
35. Other personal property of any None $0.00
kind not already listed. Itemize.
4 continuation sheets attached
Total > $2,535,867.61
(Include amounts from any continuation sheets attached. Report total also on Summary of Schedules.)
15-52159-cag Doc#24 Filed 09/16/15 Entered 09/16/15 15:37:39 Main Document Pg 10 of
B6D (Official Form 6D) (12/07)
In re JM Oilfield Service, Inc. 388 Case No. 15-52159
(if known)
SCHEDULE D - CREDITORS HOLDING SECURED CLAIMS
 Check this box if debtor has no creditors holding secured claims to report on this Schedule D.
CREDITOR'S NAME AND DATE CLAIM WAS AMOUNT OF UNSECURED
INCLMUADILININGG Z AIPD CDOREDSES AND OR INCUORF RLEIEDN, ,N AANTDURE ENT ATED ED WCITLHAOIMU T PORATNIOYN, IF
(ASNe eA CInCstOruUcNtioTn Ns UAMboBvEeR.) CODEBT PDREOSPCVEARRLITPUYTE ISO OUNFB AJNECDT CONTING UNLIQUID DISPUT CDVOEALDLLUUACETTE OIRNFAG L
TO LIEN
DATE INCURRED:
ACCT #: NATURE OF LIEN:
Purchase Money
Advantage Funding COLLATERAL: $24,921.52 $24,921.52
2013C hevy Avalanche 3GNTKGE74CG24726
Collection Specialist
REMARKS:
14402 Collections Center Drive
Chicago, IL 60693
VALUE: $0.00
DATE INCURRED:
ACCT #: NATURE OF LIEN:
Purchase Money
All Points Capital Corp COLLATERAL: $54,949.28 $54,949.28
2013C hevy Avalanche 3GNTKGE74CG24726
PO Box 3071
REMARKS:
Hicksville, NY 11802-3071 2012D odge Ram 2500
3C6UD5CL4CG122604
2012D odge Ram 2500
3C6UD5CL2CG122603
2011 CHEVY 1500
3GCPKSE39BG281446
2011 CHEVY 1500
3GCPKSE32BG385793

VALUE: $0.00
DATE INCURRED:
ACCT #: NATURE OF LIEN:
Purchase Money
ALLY Financial/GMAC COLLATERAL: $304,588.92 $304,588.92
2013D odge Ram 5500 C3 C7WRNFL5DG5284
PO BOX 9001948
REMARKS:
Louisville, KY 40290-1948 2011C HEV Silverado
1GCPKSE38BF146329
2011C HEV Silverado
3GCPKSE30BG308341
2011C HEVY Silverado
Subtotal (Total of this Page) > $384,459.72 $384,459.72
Total (Use only on last page) >
_______2_5________continuation sheets attached (Report also on (If applicable,
Summary of report also on
Schedules.) Statistical
Summary of
Certain Liabilities
and Related
Data.)