coleco

-11-

UVA-F-0775

Exhibit 6

COLECO INDUSTRIES, INC.

Consolidated Balance Sheet

($ Thousands)

For the years ended December 31

1980

1981

1982

1983

1984

1985

1986

1987

Cash and equivalents

$11,765

$7,749

$52,474

$5,931

$1,506

$110,734

$82,483

$34,633

Accounts receivable, net

13,766

21,236

107,803

158,022

206,712

100,314

161,481

196,684

Inventories

29,933

42,629

69,149

164,664

86,474

40,672

78,662

67,486

Other

2,742

3,502

21,489

78,473

30,716

53,893

70,851

36,039

Total current assets

58,206

75,116

250,915

407,090

325,408

305,613

393,477

334,842

Property, net

16,869

20,340

31,893

58,183

49,947

49,912

63,910

60,377

Other assets

4,142

3,939

3,057

12,259

13,649

42,016

134,003

140,338

Total assets

$79,217

$99,395

$285,865

$477,532

$389,004

$397,541

$591,390

$535,557

Current long-term debt

$1,044

$1,194

$3,604

$3,669

$5,087

$5,784

$10,320

$10,023

Notes payable

166,420

106,047

115,588

142,114

Accounts payable

7,689

19,130

64,388

81,385

86,358

35,382

51,704

74,501

Other

13,079

13,628

53,316

47,839

46,606

77,129

110,108

84,774

Total current liabilities

21,812

33,952

121,308

299,313

244,098

118,295

287,720

311,412

Senior long-term debt

17,499

17,075

16,604

26,485

28,594

21,670

16,388

9,585

Deferred liabilities

723

901

3,075

10,028

700

27,002

3,420

3,523

Subordinated debentures

52,225

52,287

52,359

52,445

213,722

215,359

Convert. subord. Debent

52,751

75,777

77,804

79,949

Total liabilities

40,034

51,928

193,212

388,113

378,502

295,189

599,054

619,828

Preferred stock; 22,224 shares

22

Common stock

7,515

7,649

15,298

16,014

16,155

16,998

17,140

17,802

Common stock subscribed

416

157

11

Capital in excess of par value

12,503

12,942

6,427

10,035

13,241

22,222

23,284

48,642

Retained earnings (deficit)

19,165

26,876

70,928

63,370

(19,310)

62,975

(48,099)

(150,737)

Total equity (deficit)

39,183

47,467

92,653

89,419

10,502

102,352

(7,664)

(84,271)

Total liabilities and equity

$79,217

$99,395

$285,865

$477,532

$389,004

$397,541

$591,390

$535,557

-12-

UVA-F-0775

Gross

Net

Profit

Earnings

Earnings/

Sales

(Loss)

(Loss)

Share

1986 1

$113,418

$61,934

$5,738

$0.34

2

127,778

53,655

1,058

0.06

3

185,715

66,337

(7,473)

(0.44)

4

73,747

(1,833)

(110,572)

(6.48)

Year

500,658

180,093

(111,249)

(6.52)

1987 1

124,470

47,629

(8,899)

(0.52)

2

146,069

64,836

752

0.04

3

164,978

78,992

1,554

0.09

4

68,966

(12,509)

(98,758)

(5.69)

Year

504,483

178,948

(105,351)

(6.08)

-13-

UVA-F-0775

Exhibit 8

COLECO INDUSTRIES, INC.

Liquidity and Long-Term Debt1

($ Thousands)

Lines of Credit

1986

1987

Average amount outstanding

$33,886

$89,737

Maximum amount outstanding

100,803

170,733

Average effective interest rate

8.8%

9.5%

Effective year-end interest rate

8.4%

9.7%

Senior Long-Term Debt

Amortization

1986

1987

of Senior Debt

11% term loan due 1988

$5,929

$2,879

1988

$8,881

Mortgage and building and equipment

1989

1,779

Loans due through 1998

14,070

10,786

1990

764

Capitalized lease obligations

6,709

5,943

1991

433

26,708

19,608

1992

283

Current portion

(10,320)

(10,023)

Senior long-term debt

$16,388

$9,585

Subordinated Debentures

Sinking Fund

Payments on

1986

1987

Sub. Debentures

11.125% subordinated debentures

1992

$0

due 2001

$161,177

$162,696

1993

6,050

14.375% subordinated debentures

1994

6,050

due 2002

52,545

52,663

1995

6,050

1996

33,605

Subordinated debentures

$213,722

$215,359

1997

33,605

Convertible Subordinated Debentures

Conversion Value

11% convertible subordinated

1986

1987

of Sub. Debentures

debentures due 1989

$47,487

$47,948

3.54 MM shares

6.5% convertible subordinated

32,001

1.72 MM shares

debentures due 1993

30,317

Convertible subordinated

$79,949

debentures

$77,804

-14-

UVA-F-0775

Exhibit 9

COLECO INDUSTRIES, INC.

Creditors

Secured Debt

Largest Creditors

Approximate Amount

Connecticut National Bank and

National Bank of Canada

$30 million

Credit Suisse de National,

Banque Indo Suez, and 3 others

$68 million

Unsecured Debt Securities

($295.3 million; 650 holders)

Trustee

Securities

Midlantic National Bank

11% and 6.5% convertible subordinated;

$77.9 million

U.S. Trust

14 3/8% and 11 l/8% subordinated;

$215.4 million

Other Liabilities

($135.2 million; 1,200+ creditors)

Largest Creditors

Approximate Amount

Kader Industries (Hong Kong)

4.0 million

Applied Electronics

3.4

Original Appalachian Artworks (Cabbage Patch creator)

2.5

Sunshine Garment (Hong Kong)

2.3

Kam Toys (Hong Kong)

1.9

Basel Jacobs (advertising)

1.8

Barry & Lloyd

1.6

Concorde Express

1.5

Wah Shing Toys (Hong Kong)

1.3

Texas Instruments

1.1

Rapid Industries Plastics

1.1

McLaren, Morris, & Todd, Ltd (Canada)

1.0

Admerex International

1.0

Jet Speed

0.9

Children’s T.V. Workshop

0.8

1st America Bank of New York

0.8

Perfekta Enterprises (Hong Kong)

0.8

D & E Packaging

0.8

Scott Lancaster Mills (Los Angeles)

0.7

Rand Whitney Container Corp.

0.7 million

-15-

UVA-F-0775

3-Month

Treasuries

LIBOR on

Bills

Notes & Bonds

Moody’s

Prime

U.S. $

3-Mo 1-Yr

3-Yr

10-Yr

Aaa

Baa

Lending

Deposits

1982

10.61

11.07

12.92

13.00

13.79

16.11

14.86

13.29

1983

8.61

8.80

10.45

11.10

12.04

13.55

10.79

9.72

1984

9.52

9.92

11.89

12.44

12.71

14.19

12.04

10.94

1985

7.48

7.81

9.64

10.62

11.37

12.72

9.93

8.40

1986

5.98

6.08

7.06

7.68

9.02

10.39

8.33

8.86

1987 Jan.

5.43

5.46

6.41

7.08

8.36

9.72

7.50

6.21

Feb.

5.59

5.63

6.56

7.25

8.38

9.65

7.50

6.43

March

5.59

5.68

6.58

7.25

8.36

9.61

7.50

6.49

April

5.64

6.09

7.32

8.02

8.85

10.04

7.75

6.87

May

5.66

6.52

8.02

8.61

9.33

10.51

8.00

7.35

June

5.67

6.35

7.82

8.40

9.32

10.52

8.25

7.23

July

5.69

6.24

7.74

8.45

9.42

10.61

8.25

7.00

Aug.

6.04

6.54

8.03

8.76

9.67

10.80

8.25

7.04

Sept.

6.40

7.11

8.67

9.42

10.18

11.31

8.75

7.63

Oct.

6.13

7.05

8.75

9.52

10.52

11.62

9.25

8.39

Nov.

5.69

6.50

7.99

8.86

10.01

11.23

9.00

7.53

Dec.

5.77

6.69

8.13

8.99

10.11

11.29

8.75

7.98

1988 Jan.

5.81

6.52

7.87

8.67

9.88

11.07

8.75

7.26

Feb.

5.66

6.21

7.38

8.21

9.40

10.62

8.50

6.84

-16-

UVA-F-0775

Exhibit 11

COLECO INDUSTRIES, INC.

Selected Bond Yields

Yield

Rating1

Mat.

Current

to

Company

Form of Debt

Coupon

Date

Yield

Maturity

Champion Int’l

BBB

Notes

8.625

1996

9.02

9.41

Chrysler Corp.

BBB-

Sinking fund debent.

10.950

2017

10.53

10.5

Chrysler Fin.

BBB-

Subordinated notes

9.300

1994

9.49

9.72

Great Amer. Comm.

CCC+

Senior sub. debent.

14.375

1999

13.82

13.67

Great Amer. Comm.

CCC

Sen. sub. sf. nts.

9.000

1993

10.59

13.08

Harcourt Brace J.

CCC+

Senior sub. debent.

13.750

1999

12.73

12.42

Hutton, E. F.

BBB-

Notes

8.500

1991

8.59

8.86

Interlogic Trace

CCC+

Subordinated debent.

11.990

1996

16.89

19.05

Maxus Energy

BBB-

Notes

10.500

1995

10.47

10.45

McCrory Corp.

CCC-

Senior subord. notes

15.750

1991

17.03

18.85

McCrory Corp.

CCC-

Sen. sf. debent.

7.750

1995

12.86

17.42

Occidental

BBB

Senior debentures

11.750

2011

11.11

11.05

S’mark

CCC+

Senior subord. notes

13.250

1994

20.54

--

TWA

CCC

Sub. sf. debent.

5.000

1994

7.35

12.99

Western Union

CCC-

Sinking fund debent.

8.100

1998

15.88

19.08