============================================================================ 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 -------------- REUNION INDUSTRIES, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 01-15739 06-1439715 ---------------------------------------------------------------------------- (State of Incorporation) (Commission File No.) (IRS Employer ID No.) 11 STANWIX STREET, SUITE 1400 PITTSBURGH, PENNSYLVANIA 15222 ------------------------------------------------------------ (Address of principal executive offices, including zip code) (412) 281-2111 ---------------------------------------------------- (Registrant's telephone number, including area code) NOT APPLICABLE ------------------------------------------------------------- (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)) ========================================================================== 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