BRUNDAGE-BONE CONCRETE PUMPING, INC.,

AND JLS CONCRETE PUMPING, INC. 

February 24, 2010 
 

To:  Our Customers, Vendors and Industry Partners 

From:  Brundage-Bone Concrete Pumping, Inc. and

            JLS Concrete Pumping, Inc. 

Re: Frequently Asked Questions ("FAQs") About Recent Developments in Our Bankruptcy and Our Reorganization

______________________________________________________________________________ 

On January 4, 2010, we posted on commonly visited industry web sites our first "FAQ.”  In that FAQ, we answered questions that you, our customers, vendors and business partners, asked us about the bankruptcy of Brundage-Bone Concrete Pumping, Inc. ("BBCP"), and our affiliate, JLS Concrete Pumping, Inc. ("JLS" and collectively, "BBCP" or the "Companies").  In that initial FAQ, we promised to periodically update you with information in our reorganization.  This FAQ provides information to you about recent developments in our bankruptcy.  As always, we encourage you to contact us if you have additional questions.  We will distribute answers to your additional questions in a follow up to this FAQ. 

Q. Some of BBCP's lenders are seeking the appointment of an Examiner and a Trustee.  In connection with these Motions, these lenders (and the lenders' experts and consultants) allege many things about BBCP's management and board of directors.  What is BBCP's response to these allegations? 

A. Wells Fargo and its related entities filed two motions with the Bankruptcy Court, a Motion seeking the appointment of an Examiner, and a Motion seeking the appointment of a Trustee ("Wells Fargo's Motions") [Docket Numbers 31 and 35]. Both of Wells Fargo's Motions, and documents and declarations by people that Wells Fargo relies on to support Wells Fargo's Motions, contain statements that we believe are incorrect or incomplete.  Judge Campbell has made it clear during our hearings that he affords no weight to “allegations” that are not subject to cross examination under oath. The allegations in the Wells Fargo’s Motions are just that - allegations that have not been subjected to cross examination under oath. 

On February 12, 2010, the BBCP filed two Responses and Objections (the "Responses") to Wells Fargo's Motions, totaling over 45 pages.  We responded to each of the allegations made by Wells Fargo and its representatives, and explained to the Bankruptcy Court the reasons why we believe neither an Examiner nor a Trustee should be appointed.   

On that same day, private equity fund, Aurora Resurgence Management Partners LLC and its affiliate Commercial Finance Services 110 LLC (collectively, "Aurora"), filed a separate response and objection to Wells Fargo's Motions.  In its response, Aurora states that part of its interest in investing in BBCP is driven by its opinion of BBCP's senior management team.  Furthermore, Aurora points out in its response, that Wells Fargo's own actions (i.e., its offer to finance BBCP's operations throughout the restructuring) refute Wells Fargo's allegations that it lacks confidence in BBCP's ability to reorganize, notwithstanding that the senior management team is in place. 

Management is prepared to testify in Bankruptcy Court, under oath and subject to cross examination, in support of the statements we made in the Responses and to refute the incorrect or incomplete allegations made in the Wells Fargo Motions. Wells Fargo will likely put on witnesses in that same hearing in the Bankruptcy Court to support the allegations in the Wells Fargo Motions.  We are looking forward to our counsel having the opportunity to cross examine Wells Fargo's witnesses.  We believe that, when the Bankruptcy Court hears all of the evidence, we will prevail in our opposition to Wells Fargo's Motions.   

We believe that we have set the record straight in the Bankruptcy proceeding laying out the facts in our Responses.  Now, we want to set the record straight with you.  We invite you to read our Responses and our statement of the relevant facts.  Attached to this FAQ are PDF copies of our two Responses [Docket Numbers 179 and 180] and Aurora's response [Docket Number 182].  The full text of our Responses and Aurora's response is available here: 

Q. Are BBCP and JLS paying their federal taxes, including FICA, FUTA and other payroll taxes, on time?  Why did the IRS file proofs of claim for $372,000 in the Bankruptcy Cases?   

A. Yes.  BBCP and JLS are paying their federal taxes, including FICA, FUTA and other payroll taxes, in full and on time.   

On February 9 and 10, 2010, the IRS filed proofs of claim against JLS and BBCP (the "Proofs of Claim"), respectively, claiming approximately $372,000 in federal taxes.  In a bankruptcy proceeding, it is common for the IRS and other taxing authorities to file proofs of claim early in the process.   

The tables below set forth the amounts of taxes that the IRS claims as due in its Proofs of Claim, and the current status of each claim.  Despite unsubstantiated allegations by third parties to the contrary, as you will see in the "Status" columns in the tables, BBCP and JLS are current with respect to all payments of all federal taxes listed in the IRS Proofs of Claim.  

With respect to BBCP, the IRS' Proof of Claim claims 9 amounts due:   

With respect to JLS, the IRS' Proof of Claim claims 11 amounts due: 

Because many of the amounts in the Proofs of Claim have not yet become due, or were already timely paid by the Companies, our counsel has contacted the IRS and requested that it amend or correct its Proofs of Claim.  We will post the amended or corrected IRS Proofs of Claim on our website in the coming weeks after they are filed with the Bankruptcy Court. 

Q:  Where can I get more information? 

A: As always, we invite you to visit our website (http://www.brundage-bone.com/BBCP/index.cfm, click on the link titled "Restructuring News") for periodic updates of our bankruptcy and restructuring.  For direct access to filings in the bankruptcy case, please visit http://chap11.epiqsystems.com/docket/docketlist.aspx?pk=3562a12d-e15f-432b-ac4e-7a30eaff9555.

Spin drs working over time.....

are we tired of knowing all thier business,take care of your own and I say let them do whatever theyre gonna do , I could care less I have enough crap to worry about no need to know how theyre gonna go rebuild, unless you are employed by them or your interested in buying them let it rest please.No disrespect meant to anyone just tired of reading about it every day, lets read about some companies that are doing good, hey we have been busy, and just had a price increase ,wander if that'll get a little fire beside it.

Hey pudg   that is great news. l love good news.

BBCP just asked me to post that so I did.  I did not even read it. I am with you and am kind of tired of it all.I can only take so much.

I LIKE TO HEar it cause I just got hired by them and thats right I'm going to work

Nobody is making you guys read this. You can just over look it like I do a lot of stuff on here.