IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLORADO
Debtors in a Foreign Proceeding
Case No. 07-22719 (MER)
Ernst & Young Inc., as
Receiver of Klytie's Developments Inc.,
Klytie's Developments, LLC,
Efrat Friedman, and Hidai Friedman
SECOND STATUS REPORT OF RECEIVER AND FOREIGN REPRESENTATIVE
IN A FOREIGN MAIN PROCEEDING
Receiver Ernst & Young, Inc. (the "Receiver"), the foreign representative in the foreign
main proceedings of the above Debtors in a Foreign Proceeding, by his attorneys Sherman & .
Howard L.L.C., submits this Second Status Report as directed of
the above Debtors in a Foreign
Main Proceeding by the Court in its Minutes of Proceeding dated September 2, 2008 and Order
dated September 17,2008.
1. By Order entered February 8, 2008, this Court recognized the Receiver as a
foreign representative for the foreign main proceedings of the above Debtors in a Foreign Main
Proceeding. On April 24, 2008, the Receiver fied his Status Report of Receiver and
Representative in a Main Foreign Proceeding (the "First Report"). This Second Status Report
summarizes the activities of the Receiver from April 24, 2008, to the present, provides the
Receiver's statement of receipts and disbursements, describes the Claims Process conducted by
the Receiver, and provides the Receiver's estimated distribution. .
2. Attached to this Report as Exhibit 1 is the Third Report of The Receiver fied
October 3, 2008 with the Cour of Queen's Bench of Alberta, Canada, Calgary Judicial District
(the "Third Canadian Court Report"). The Third Canadian Court Report describes in detail the
activities of the Receiver and his agents in Canada and the United States. Attached as Appendix
B to the Third Canadian Court Report is a statement of receipts and disbursements for the time
period August 30, 2007 to September 30, 2008, The statement evidences total receipts of
$1,116,172 and total disbursements of
$888,107 resulting in a cash balance of $228,065 as of
September 30, 2008.