<PAGE>

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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                               ----------------

                                   FORM 10-K

[X]ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  SECURITIES EXCHANGE ACT OF 1934

  For the fiscal year ended December 31, 2000

                                       OR

[_]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  SECURITIES ACT OF 1934

                        Commission file number 000-24711

                               ----------------

                             EBS Litigation, L.L.C.
             (Exact name of registrant as specified in its charter)

                Delaware                               13-3989964
    (State or other jurisdiction of     (I.R.S. Employer Identification Number)
             incorporation)

                      c/o Friedman, Wang & Bleiberg, P.C.
                                 90 Park Avenue
                            New York, New York 10016
                              Attn: Peter N. Wang
                    (Address of principal executive offices)

       Registrant's telephone number, including area code  (212) 682-7474

                               ----------------

          Securities registered pursuant to Section 12(b) of the Act:

                                      None

          Securities registered pursuant to Section 12(g) of the Act:

                            Class A Membership Units
                                (Title of class)

   Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X]  No [_]

   Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]

   There is no aggregate market value of the registrant's Class A Membership
Units held by nonaffiliates of the registrant as of December 31, 2000. Book
value of the registrant's Class A Membership Units as of December 31, 2000 was
approximately $1.5 million.

   There were 10,000,000 Class A Membership Units outstanding as of March 15,
2001.

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--------------------------------------------------------------------------------
<PAGE>

                                     PART I

ITEM 1--BUSINESS

   Unless otherwise noted, all references to "the Company" shall mean EBS
Litigation, L.L.C., a Delaware limited liability company.

Background

   On September 9, 1997, the United States Bankruptcy Court for the District of
Delaware (the "Bankruptcy Court") entered an order in accordance with section
1129 of the Bankruptcy Code, 11 U.S.C. (S)(S) 101-1330, et seq. (the
"Bankruptcy Code"), confirming the Amended Joint Plan of Reorganization Under
Chapter 11 of the Bankruptcy Code (the "Plan") filed by Edison Brothers Stores,
Inc. ("Edison") and its affiliated debtors in possession (collectively with
Edison, the "Debtors"). The Plan became effective on September 26, 1997 (the
"Effective Date").

   The Company was established pursuant to the Plan and the EBS Litigation,
L.L.C. Members Agreement (the "Members Agreement"). Pursuant to the Plan, each
holder of an Allowed General Unsecured Claim (as defined in the Plan) against
Edison was entitled to receive a distribution on account of such claim which
included, among other consideration, the holder's pro rata share of the
Company's Class A Membership Units in the Company. The initial distribution
date under the Plan occurred on or about December 12, 1997 (the "Initial
Distribution Date"). Accordingly, in late December of 1997, holders of Allowed
General Unsecured Claims began receiving membership certificates evidencing
their ownership of Class A Membership Units in the Company. As of December 31,
1999 and 2000, there were 10,000,000 Class A Membership Units and no Class B
Membership Units of the Company issued and outstanding.

   The Plan further provided for the Debtors' transfer to the Company of their
right, title and interest in and to all of the Debtors' potential fraudulent
transfer causes of action under the Bankruptcy Code or applicable state law,
arising in connection with (a) the June 29, 1995 distribution by Edison of
approximately 4,404,560 shares of common stock (the "D&B Common Stock") in Dave
& Buster's Inc., a Missouri corporation ("Dave & Busters"), to holders of
Edison common stock (the "D&B Spinoff Stockholders") in the form of a dividend;
and (b) all related transactions (the "D&B Spinoff"). The causes of action
relating to the D&B Spinoff are referred to herein as the "Unresolved Avoidance
Claims." Following transfer of the Unresolved Avoidance Claims to the Company,
the Plan provided for the appointment of the Company as the representative of
the Debtors' estates for the purpose of retaining and enforcing the Unresolved
Avoidance Claims in accordance with section 1123(b)(3)(B) of the Bankruptcy
Code and the Members Agreement.

   The Plan further obligated the Debtors to transfer the "L.L.C. Funding
Amount," in an amount designated by the Official Committee of Unsecured
Creditors appointed in the Debtors' chapter 11 cases (the "Creditors'
Committee"), to the Company on the Effective Date. The Creditors' Committee
designated $2 million as the L.L.C. Funding Amount payable to the Company; such
L.L.C. Funding Amount was paid to the Company on October 16, 1997.

Formation of the Company and Summary of Certain Provisions of the Members
Agreement

 Formation

   In accordance with the Plan, the Certificate of Formation of the Company was
filed on September 24, 1997, with the office of the Delaware Secretary of State
for the purpose of forming the Company as a limited liability company under the
provisions and subject to the requirements of the State of Delaware, and in
particular the Delaware Limited Liability Company Act, Del. Code Ann. tit. 6,
ch. 18 (the "Delaware Act"). The Certificate of Formation became effective on
September 25, 1997 (the "Inception Date").

                                       2
<PAGE>

 Purposes

   The Company was organized solely for the purposes of (a) prosecuting,
settling and/or liquidating the Unresolved Avoidance Claims; (b) receiving and
administering all assets of the Company (i.e., the cash proceeds of the
Unresolved Avoidance Claims or "Avoidance Claim Proceeds" as well as other
property or proceeds received by the Company); and (c) distributing the net
Avoidance Claim Proceeds to holders of Membership Units in the Company pursuant
to the terms of the Members Agreement. The Company has no objective to engage
in the conduct of any trade or business. In essence, the Company constitutes a
vehicle for (a) converting the Unresolved Avoidance Claims to cash, whether by
means of the D&B Spinoff Settlement (as defined in the Plan) or other
settlement, or enforcement of a judgment ultimately obtained; and then (b)
distributing all net cash to holders of Membership Units in the Company.

 Administration and the Manager

   The Company has no employees. The affairs of the Company are managed by the
Manager. The Manager of the Company, as duly designated by the Creditors'
Committee, is Peter N. Wang (in such capacity, the "Manager"). The principal
office of the Company is maintained at the office of the Manager, which is the
law office of Friedman, Wang & Bleiberg, P.C. ("FWB"), 90 Park Avenue, New
York, New York 10016. The telephone number is (212) 682-7474.

   In furtherance of the Company's purposes and subject to the retained
jurisdiction of the Bankruptcy Court as provided for in the Plan, the Manager
is obligated to make continuing efforts to (1) prosecute, settle and/or
liquidate the Unresolved Avoidance Claims, based upon the assessment of the
Manager, with the advice of counsel and consultants retained by the Manager, of
(A) the likelihood that the Company will prevail on the merits, (B) the
possible recovery on such litigation, (C) the estimated cost (and attendant
delay) of such litigation, (D) the offer of settlement, (E) the resources of
the Company that are available for prosecuting the Unresolved Avoidance Claims,
and (F) any other matters that the Manager deems to be relevant to such
assessment, and (2) make distributions of Avoidance Claim Proceeds; in each
case in an expeditious but orderly manner intended reasonably to maximize the
value of such distributions to the Members, but subject to the judgment and
discretion of the Manager and the provisions of the Members Agreement. The
Manager is not liable or accountable, in damages or otherwise, to the Company
or to any Member for any action or inaction, except in the case of his willful
breach of a material provision of the Members Agreement or gross negligence in
connection with the performance of his duties under the Members Agreement.

   The Manager is empowered to retain such independent experts and advisors
(including, but not limited to, law firms, tax advisors, consultants or other
professionals) as the Manager may select to aid in the performance of his
duties and responsibilities and to perform such other functions as may be
appropriate in furtherance of the intent and purpose of the Members Agreement.

   The Members Agreement also requires the Manager to designate one of the
Members as the "Tax Matters Partner" (as defined in the Section 6231 of the
Internal Revenue Code). The Tax Matters Partner is required to represent the
Company (at the Company's expense) in connection with all examinations of the
Company's affairs by tax authorities and to expend Company funds for
professional services associated therewith. The Tax Matters Partner also
arranges for the preparation and timely filing of all returns required to be
filed by the Company and the distribution of Form K-1 or other similar forms to
all Members. In accordance with the Members Agreement, the Manager has
designated Citibank, N.A., through its authorized representative Randolph I.
Thornton, Jr., to serve as the Tax Matters Partner of the Company.

   The Manager has selected the law firm of Jones, Day, Reavis & Pogue ("Jones
Day") to serve as counsel to the Company. Jones Day's principal duties as
counsel for the Company involve the prosecution of the D&B Spinoff Litigation
(as defined below) and related negotiations. Prior to the Effective Date, Jones
Day served as counsel to the Creditors' Committee. The Manager has selected
PricewaterhouseCoopers LLP to provide the Company with financial reporting and
consulting services as well as tax-related services. Wells Fargo Bank

                                       3
<PAGE>

Minnesota, N.A. (formerly known as Norwest Bank Minnesota, N.A.), which serves
as the Company's Transfer Agent and as the Company's Disbursing Agent under the
Plan, maintains the Company's funds and ownership registers, coordinates
distributions to Members of the Company, and performs related administrative
duties. Rubin, Brown, Gornstein & Company, LLP serves as the Company's
independent auditors.

   Subject to the retained jurisdiction of the Bankruptcy Court as provided for
in the Plan, but without prior or further authorization, the Manager may
control and exercise authority over the Company's assets, over the acquisition,
management and disposition thereof and over the management and conduct of the
Company to the extent necessary to enable the Manager to fulfill the intent and
purposes of the Members Agreement. No person dealing with the Company is
obligated to inquire into the authority of the Manager in connection with the
acquisition, management or disposition of the Company's assets. In connection
with the administration of the Company's assets and the management of the
Company's affairs, the Manager has the power to take any and all actions as, in
the Manager's sole discretion, are necessary or advisable to effectuate the
purposes of the Company. The Manager may not, however, at any time, on behalf
of the Company or the Members, enter into or engage in any trade or business,
and no part of the Company's assets will be used or disposed of by the Manager
in furtherance of any such trade or business. All decisions and actions taken
by the Manager under the authority of the Members Agreement are binding upon
all of the Members and the Company. Without the consent of all of the Members,
the Manager may not (1) take any action in contravention of the Members
Agreement; (2) take any action which would make it impossible to carry on the
activities of the Company; or (3) possess property of the Company or assign the
Company's rights in specific property for other than Company purposes.

 Term of the Company; Dissolution

   The Company's existence was originally scheduled to terminate (unless
dissolved earlier) on September 26, 2000 (the third anniversary of the
Effective Date). However, the Manager (with the approval of Bankruptcy Court by
Order No. 98-547-SLR) extended the Company's existence until September 19,
2002. If the Company's Assets have not been fully liquidated and distributed or
all Disputed General Unsecured Claims (as defined in the Plan) have not been
resolved then the Company's existence may be extended for another two year
period. The Company may also be earlier dissolved because of an ajudication of
the Bankruptcy Court or because of the unanimous written consent of all
Members. In the event of the Company's dissolution, following the payment of,
or provision for, all debts and liabilities of the Company and all expenses of
liquidation, and subject to the right of the Liquidating Agent (as defined in
the Members Agreement) to set up reasonable cash reserves for any contingent or
unforeseen liabilities or obligations of the Company, all assets of the Company
(or the proceeds thereof) will be distributed to holders of Class A Membership
Units in accordance with their respective Capital Account (as defined in the
Members Agreement) balances. No Member will have any recourse against Edison or
any other Member for any distributions with respect to such Member's Capital
Account balances.

The Company's Operations Since Inception

 Commencement of Litigation

   On September 29, 1997, the Company, as the assignee of the Unresolved
Avoidance Claims, filed a complaint (the "Complaint") with the Bankruptcy
Court, commencing the prosecution of all Unresolved Avoidance Claims against
the D&B Spinoff Stockholders, Dave & Busters, and their current management. The
lawsuit is pending before the Bankruptcy Court as Adversary Proceeding No. A-
97-171 (the "D&B Spinoff Litigation"). The Complaint filed by the Company
alleged, among other things, that Edison had not received reasonably equivalent
value for the D&B Common Stock and certain realty holdings valued at
approximately $7.3 million in connection with the D&B Spinoff, and thus sought
to recover the D&B Common Stock, or the value thereof, from the D&B Spinoff
Stockholders.

                                       4
<PAGE>

   The Company also filed a Motion to Certify Defendant Class, requesting that
the Bankruptcy Court permit the Company to prosecute the D&B Spinoff Litigation
as a defendant class action. A defendant class action is a procedural device
whereby the plaintiff, in this case the Company, can identify a limited number
of qualified defendants to represent the interests of a larger number of
similarly situated defendants and upon prevailing, can take judgment against
all defendants. Certification of a defendant class and designation of class
representatives permits the plaintiff to obtain uniform relief from all
defendants by removing the inefficiencies and risks of inconsistent or varying
adjudications with respect to individual members of the class. The Company
initially identified 11 parties to serve as class representatives.

   In addition to seeking recovery of the D&B Spinoff Stock or its value from
the D&B Spinoff Stockholders, the Complaint sought to recover approximately
$7.3 million transferred to insiders of Dave & Busters by subsidiaries of
Edison. Specifically, the Complaint alleged that Edison paid a $3.75 million
dividend to one subsidiary, and satisfied an antecedent debt of $3.55 million
to another subsidiary, for the sole purpose of providing cash to pay advances
to certain individual defendants. The Complaint sought recovery of these cash
transfers from defendants Dave & Busters, D&B Realty Holding, Inc., and the
named individuals (collectively, the "Spinoff-Related Defendants"). On October
30, 1997, the Spinoff-Related Defendants filed a joint answer, generally
denying the relevant allegations of the Complaint, setting forth certain
affirmative defenses and demanding a trial by jury. The Spinoff-Related
Defendants also filed a Motion for a Determination that the proceeding is a
Core Proceeding (which is a proceeding over which a bankruptcy court may
preside in accordance with 28 U.S.C. (S) 157(d)), which was granted without
objection, as well as a Motion for Withdrawal of Reference, seeking withdrawal
of the D&B Spinoff Litigation to the United States District Court for the
District of Delaware (the "District Court"). On August 10, 1998, the Company
entered into a Settlement Agreement with the Spinoff-Related Defendants and
certain other interested parties, wherein the Company released these parties
from all Spinoff-Related claims in return for a payment of $2.1 million. The
action against the Spinoff-Related Defendants was dismissed August 20, 1998,
and the money was paid into the Disbursing Agent's account on August 26, 1998.

 The D&B Spinoff Settlement

   Notwithstanding commencement of the D&B Spinoff Litigation, each D&B Spinoff
Stockholder had the right to obtain a release of all Unresolved Avoidance
Claims against it by participating in the D&B Spinoff Settlement provided for
in the Plan. In order to participate in the D&B Spinoff Settlement, a D&B
Spinoff Stockholder was obligated to exercise one of three settlement options
outlined in the Plan. The three settlement options permitted D&B Spinoff
Stockholders to participate by means of (a) exercising a specified number of
rights granted to Edison stockholders under the Plan; (b) paying cash to the
Company in an amount equal to the D&B Spinoff Release Minimum Purchase Price
described below; or (c) a combination of rights exercised and cash paid, all as
determined in accordance with formulas set forth in the Plan. Most of the D&B
Spinoff Stockholders who elected to participate in the D&B Spinoff Settlement
elected the settlement option (the "Direct Purchase Option") involving the
payment of the "D&B Spinoff Release Minimum Purchase Price," which was equal to
the product of (a) $5.6593, and (b) the number of shares of D&B Common Stock
that such D&B Spinoff Stockholder received in connection with the D&B Spinoff.

   The Plan provided for the expiration of the D&B Spinoff Settlement Period on
the 30th day after the Effective Date. The Company elected to extend such
period for the Direct Purchase Option until March 30, 1998. It was determined
that such an extension was in the best interests of the Company, as it
permitted the recovery of approximately $4.5 million in D&B Spinoff Settlement
Proceeds from defendants who were not able to accept the D&B Spinoff Settlement
Offer by the initial deadline, for reasons including, without limitation, (a)
the time lag attendant to the transmission of settlement-related documents from
record holders to their beneficial holders, and (b) the desire of certain D&B
Spinoff Stockholders to consult with counsel or other advisors prior to
participating in the D&B Spinoff Settlement.

   At December 31, 1998, the D&B Spinoff Settlement Proceeds that had been
received by the Company aggregated approximately $15.0 million. This sum
represents the aggregate settlement amount paid by D&B

                                       5
<PAGE>

Spinoff Stockholders of approximately 2.4 million shares of D&B Common Stock.
Holders of approximately 2 million remaining shares did not participate in the
D&B Spinoff Settlement. For procedural reasons, the Company is only seeking
recovery against D&B Spinoff Stockholders who received more than 55 shares of
D&B Common Stock in the D&B Spinoff.

   On November 21, 1997, the Company temporarily withdrew its Motion to Certify
Defendant Class, in light of the fact that each of the proposed class
representatives had elected to participate in the D&B Spinoff Settlement.
Following efforts to identify adequate class representatives to replace the
initial proposed class representatives, on March 6, 1998, the Company filed (a)
its Motion to File Amended Class Complaint, requesting leave to file an amended
complaint (the "Amended Complaint") substantively similar to the Complaint but
identifying new proposed class representatives; and (b) a Renewed Motion to
Certify Defendant Class. On March 30, 1998, the Bankruptcy Court granted each
of these motions. The Bankruptcy Court's Order Certifying Defendant Class
Action (the "Class Certification Order") certified the following defendant
class (the "Defendant Class") as a mandatory defendant class pursuant to Rule
23(b)(1) of the Federal Rules of Civil Procedure:

     All persons or entities who were the beneficial or legal recipients of
  at least 55 shares of the June 1995 transfer of 4,404,560 shares of Dave
  and Busters stock from Edison except those persons or entities who have
  obtained a release of Unresolved Avoidance Claims, as defined in the Plan,
  that was confirmed on September 9, 1997.

   The Class Certification Order designated the following entities
(collectively, the "Class Representatives") to represent the Defendant Class:
Barclays Global Investors, N.A.; Greentree Partners; Greenway Partners;
Wilshire Associates, Inc; and WKW Asset Management.

   On May 22, 1998, Class Representative Wilshire Associates, Inc. filed a
motion under Federal Rule of Civil Procedure 12(b)(6), seeking the Bankruptcy
Court's determination that Wilshire Associates, Inc. is not a proper party to
the D&B Spinoff Litigation. Wilshire Associates, Inc. asserts that it merely
serves as the nominee record holder of D&B Spinoff Stock, for the benefit of a
number of persons who have not thus far been identified. The Company has filed
a response to such motion, indicating that it will consent to dismissal of
Wilshire Associates, Inc. from the D&B Spinoff Litigation if Wilshire
Associates, Inc. adequately identifies, voluntarily or in accordance with an
order of the Bankruptcy Court, the persons for whose benefit it holds D&B
Spinoff Stock.

   The Class Representatives selected Edward McNally and the Wilmington,
Delaware law firm of Morris, James, Hitchens & Williams ("Class Counsel") to
represent the Defendant Class. On June 8, 1998, Class Counsel filed a motion
seeking payment of all fees and costs relating to the D&B Spinoff litigation.
The Bankruptcy Court has not yet ruled on the motion, which the Company
opposes. Following official appointment of Class Counsel by the Bankruptcy
Court, the Class Counsel, on July 1, 1998, filed a motion requesting
decertification of the Defendant Class and a motion to withdraw reference from
the bankruptcy court. The Company filed its responses opposing the motions on
July 14, 1998 and July 28, 1998, respectively. On July 17, 1998, the Defendant
Class filed a motion to dismiss the action. The Company's response opposing
this motion was filed on August 10, 1998.

   The Defendant Class' Motion to Withdrawal Reference was assigned in the
district court in late September 1998. The Motion was fully briefed, and the
Company requested oral argument.

   In May 1999 the United States District court for the District of Delaware
heard arguments on, and in July 1999 denied, the Defendant Class' Motion to
Dismiss, the Defendant Class' Motion to Decertify the Defendant Class and Named
Representative Wilshire Associates, Inc.'s ("Wilshire's") Motion to Dismiss.

   The Company's lawyers completed third-party discovery, including depositions
of former officers and directors of Edison, and third-party discovery closed on
March 31, 2000, pursuant to court order. On or about

                                       6
<PAGE>

March 29, 2000, the Class Representatives filed a third-party complaint against
former directors of Edison (the "Edison Third-party Defendants"), former and
current directors of Dave & Busters, Inc. and against Dave & Busters, Inc. (the
"D&B Third-party Defendants" and collectively with Edison Third-party
Defendants, the "Third-party Defendants"). The complaint purports to allege
claims for breach of fiduciary duties, aiding and abetting breaches of
fiduciary duties, and for contribution or "subrogation." Because these claims
might have implicated the indemnification provisions described above, the
claims were reviewed in detail by the Company's lawyers, and found to be
without substantial merit.

   In June 2000, the Third-party Defendants each filed a motion to dismiss the
third-party complaints against them ("Motions to Dismiss"). The Company filed a
joinder in those Motions to Dismiss. On August 21, 2000, the Court held a
hearing on the Motions to Dismiss and other matters. By Order dated as of
August 28, 2000, the Court granted the Motions to Dismiss in part, and denied
them in part. The Court dismissed the breach of fiduciary duty claims and the
related claims for aiding and abetting breach of fiduciary duty, finding the
claims, if any, barred by the statute of limitations. However, the court denied
the Motion to Dismiss the purported contribution and/or "subrogation" claim.
Because of certain inconsistencies in the court's rulings, the Third-party
Defendants moved for clarification, reconsideration, or in the alternative,
interlocutory (immediate) appeal ("Motions for Reconsideration"). The Company
filed a limited joinder in those Motions for Reconsideration, and the Class
filed its opposition. The Court ruled on the Motion for Reconsideration on
January 12, 2001 dismissing all third party claims, and entered judgment under
Rule 54(b) on March 13, 2001.

   In July 2000, the Class Representatives also filed a Motion to Amend the
Order Certifying the Defendant Class ("Motion to Amend"). In this Motion to
Amend, the Class Representatives seek to add absent class members as named
class representatives. The Company opposed this Motion to Amend on the grounds
that: (i) the Class Representatives should not have been represented by Class
Counsel in the Motion to Amend against absent class members; (ii) there was no
showing of need to add named Class Representatives; and (iii) the adding of
certain absent class members as named class representatives could create
unnecessary conflicts for the Company's lawyers to the substantial prejudice of
the Company. Two of the proposed named Class Representatives, Mellon Bank and
Boston Safe Deposit, related entities, filed substantive objections to the
Motion to Amend on similar grounds. On August 21, 2000, the Court heard
argument on the issues presented by the Motion to Amend and took the matter
under advisement. The parties thereafter agreed that additional named Class
Representatives may be added, but an order doing so has not yet been entered.

   In September 2000, the Company filed a motion with the United States
Bankruptcy Court, District of Delaware to reopen the bankruptcy case of Edison
Brothers Stores, Inc. for the limited purpose of extending the term of the
Company. Section 1.4 of the Company's members Agreement limits the Company's
existence to three years subject to extension(s) approved by the Bankruptcy
Court for good cause shown. Therefore, the Company's existence was set to
expire on September 26, 2000 unless extended by the Bankruptcy Court. In its
motion, the company argued that the Company's members would be best served by
permitting the Company to remain a going concern. The Bankruptcy Court granted
the Company's motion to extend the existence of the Company for an additional
two-year term.

   The trial date that had been scheduled for January 29, 2001, has now been
rescheduled by Order of the District Court of Delaware to a date to be
determined after June 15, 2001. The Company continues to prosecute the D&B
Spinoff Litigation vigorously, and to pursue the maximum available recoveries.
While there can be no assurances as to the Company's ultimate total recovery
given the uncertainties associated with litigation, at this juncture it is
estimated that such recoveries will exceed the costs of further prosecuting the
D&B Spinoff Litigation.

ITEM 2--PROPERTIES

   The Company does not own or lease any property.

                                       7
<PAGE>

ITEM 3--LEGAL PROCEEDINGS

   Other than the D&B Spinoff Litigation described throughout this Annual
Report on Form 10-K, the Company is not involved in any legal proceedings.

ITEM 4--SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS

   No matters were submitted to holders of Membership Units for vote during the
fiscal year ended December 31, 2000.

                                       8
<PAGE>

                                    PART II

ITEM 5--MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

   There is no established public trading market for the Company's Class A
Membership Units. As of December 31, 2000, there were 2,053 certified holders
of record of the Class A Membership Units. See Item 12--"Security Ownership of
Certain Beneficial Owners and Management" for more information.

ITEM 6--SELECTED FINANCIAL DATA

   The following summary operating and balance sheet data sets forth selected
financial information of the Company as of and for the years ended December 31,
2000, 1999 and 1998 and the period ended December 31, 1997 since the Inception
Date. The selected financial data as of and for the years ended December 31,
2000, 1999 and 1998 has been derived from the Company's financial statements,
which were audited by Rubin, Brown, Gornstein & Company, LLP. The following
information should be read in conjunction with the Company's financial
statements and notes thereto included elsewhere herein and "Management's
Discussion and Analysis of Financial Condition and Results of Operations,"
presented below.

<TABLE>
<CAPTION>
                           Year ended   Year ended     Year ended    Period ended
                          December 31, December 31,   December 31,   December 31,
                              2000         1999           1998         1997(1)
                          ------------ ------------   ------------   ------------
<S>                       <C>          <C>            <C>            <C>
Operating Statement
 Data:
Defendant payment
 revenue................   $    3,708   $      --      $4,981,595    $ 9,991,975
Interest income.........       98,160       92,376        388,168        106,048
Expenses................      488,762      298,727        671,438        175,587
Net (loss) income.......     (386,894)    (206,351)     4,698,325      9,922,436
Distribution per Class A
 Membership Unit........          -0-         1.49(3)        1.45(2)         -0-

Balance Sheet Data (at
 period end):
Total assets............   $1,610,146   $1,996,483     $3,049,682    $12,069,695
Accrued expenses........      102,971      102,414        161,560        147,259
Members' equity.........    1,507,175    1,894,069      2,888,122     11,922,436
</TABLE>
--------
(1) The Company's inception date was September 25, 1997.
(2) This represents an average distribution made per Class A Membership Unit
    during the year. Actual distributions to Class A Membership Unit holders
    may differ. The following includes a detailed discussion of the
    distributions made during the year. During April 1998, the Company
    distributed approximately $7.0 million to the holders of 9,342,874 Class A
    Membership Units that were outstanding at the date of distribution. During
    June 1998, the Company distributed approximately $0.1 million to holders of
    the 127,507 Class A Membership Units that were distributed in June 1998.
    During October 1998, the Company distributed approximately $6.6 million to
    the 9,470,381 holders of Class A Membership Units.
(3) This represents an average distribution made per Class A Membership Unit
    during the year. Actual distributions to Class A Membership Unit holders
    may differ. During February 1999, the company distributed approximately
    $0.8 million to holders of the 86,871 and 442,748 Class A Membership Units
    that were distributed in November and December 1998, respectively.

                                       9
<PAGE>

ITEM 7--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
       OF OPERATIONS

   The following is a discussion and analysis of the financial condition and
the results of operations of the Company as of and for the years ended December
31, 2000, 1999 and 1998 and as of and for the period ended December 31, 1997,
and of certain factors that may affect the Company's prospective financial
condition and results of operations. This discussion and analysis should be
read in conjunction with the Company's Financial Statements and Notes thereto
included elsewhere herein. This discussion contains certain forward-looking
statements which involve risks and uncertainties. The Company's actual results
could differ materially from the results expressed in, or implied by, such
statements.

Results of Operations

   The Company, which was formed pursuant to the Plan and the Members
Agreement, is a limited purpose entity which may not engage in any trade or
business. The Company was organized solely for the purposes of (a) prosecuting,
settling and/or liquidating the Unresolved Avoidance Claims, (b) receiving and
administering the Avoidance Claim Proceeds, and (c) distributing the net
Avoidance Claim Proceeds to holders of the Company's Class A Membership Units
pursuant to the terms of the Members Agreement. The Company commenced its
activities on September 25, 1997.

   On October 16, 1997, the Company received the L.L.C. Funding Amount of $2
million. The Company recognizes income from amounts received from the
prosecution, settlement and liquidation of the Unresolved Avoidance Claims. To
date, the Company has only received settlement amounts. During the period ended
December 31, 1997, the Company received approximately $10.0 million in D&B
Spinoff Settlement Proceeds. The D&B Spinoff Settlement Period was to initially
expire on October 27, 1997, at which time the Company had received
approximately $7.8 million in D&B Spinoff Settlement Proceeds. However, many
defendants were not able to accept the D&B Spinoff Settlement by the initial
deadline for reasons including, without limitation, (a) the time lag attendant
to the transmission of settlement-related documents from record holders to
their beneficial holders, and (b) the desire of certain D&B Spinoff
Stockholders to consult with counsel or other advisors prior to participating
in the D&B Spinoff Settlement. The Manager therefore decided that an extension
of the D&B Spinoff Settlement Period was in the best interests of the Company.
The extension permitted the recovery of additional D&B Settlement Proceeds of
approximately $2.2 million between October 27, 1997 and December 31, 1997 and
approximately $5.0 million in the twelve month period ended December 31, 1998.
For the year ended December 31, 1999, the Company did not receive any proceeds.
For the year ended December 31, 2000, the Company received approximately
$3,700. The Company expects to recognize defendant payment revenue in future
periods as the Unresolved Avoidance Claims are prosecuted, settled further, or
both. However, there can be no assurance that the Company will recognize any
further defendant payment revenue.

   The Company also recognizes income from interest earned on Avoidance Claim
Proceeds. The Company invests Avoidance Claim Proceeds in a money market fund
investing solely in direct obligations of the United States Government. The
Members Agreement permits all funds received by the Company to be temporarily
invested in United States treasury bills and notes with maturities of 12 months
or less, institutional money market funds, and demand or time deposits with
U.S. federal or state commercial banks having primary capital of not less than
$500 million. During the years ended December 31, 2000, 1999 and 1998 and the
period ended December 31, 1997, the Company recognized approximately $98,000,
$92,000, $388,000 and $106,000 of interest income, respectively. The amount of
interest income recognized by the Company in future periods will be dependent
on, among other things, (1) fluctuations in interest rates, (2) the amounts and
timing of any Avoidance Claims Proceeds received in the future, (3) the amounts
and timing of any distributions to holders of Class A Membership Units, and (4)
the amount and timing of the Company's expenses.

   The Company's expenses consist primarily of fees payable to the Transfer
Agent, the Manager, and the Company's lawyers, accountants and auditors and
insurance expenses. The Company had expenses of approximately $489,000,
$299,000, $671,000 and $176,000 for the years ended December 31, 2000, 1999 and

                                       10
<PAGE>

1998 and the period ended December 31, 1997, respectively. The Company's
expenses increased during fiscal year 2000 due primarily to an increase in
legal fees while actively litigating the D&B Spinoff Litigation, as well as an
increase in accounting fees due to various reporting requirements. These
expenses are expected to fluctuate in future periods primarily based on the
activity in any period in the D&B Spinoff Litigation.

   The Company and EBS Pension, L.L.C. (another limited liability company
formed pursuant to the Plan), pursuant to the Plan, will indemnify the Debtors
and their present or former officers, directors and employees from and against
any losses, claims, damages or liabilities by reason of any actions arising
from or relating to the Company and any actions taken or proceeding commenced
by the Company (other than with respect to any Unresolved Avoidance Claims that
the Company may have against such persons other than in their capacities as
officers, directors or employees of the Debtors). Indemnification must first be
sought from any applicable officers' and directors' insurance policy, and then
from the $1.5 million reserve established by EBS Pension, L.L.C. Although to
date there has not been any indemnification claim, there can be no assurance
such a claim will not be made in the future. All liabilities of the Company,
including the foregoing indemnification obligations, will be satisfied from the
Company's assets.

   At December 31, 2000, 1999, 1998 and 1997, the Company had cash and cash
equivalents of approximately $1.5 million, $1.9 million, $3.0 million and $12.0
million, respectively. During 2000, the Company did not make any distributions
to holders of Class A Membership Units. During 1999, the Company distributed an
aggregate amount of $0.8 million to holders of Class A Membership Units. The
amount and timing of any future distributions of Avoidance Claim Proceeds will
be determined by the Manager in accordance with the terms of the Members
Agreement. There can be no assurance as to the amount (if any) of any further
distributions that will be made.

   The Company is classified as a partnership for federal income tax purposes
and, therefore, does not pay taxes. Instead, the Members pay taxes on their
proportionate share of the Company's income.

                                       11
<PAGE>

ITEM 8--FINANCIAL STATEMENTS

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

                          Independent Auditors' Report

                       Rubin, Brown, Gornstein & Co., LLP
                           230 South Bemiston Avenue
                              St. Louis, MO 63105

Members
EBS Litigation, L.L.C.

   We have audited the accompanying balance sheets of EBS Litigation, L.L.C., a
limited liability company, as of December 31, 2000 and 1999, and the related
statements of operations, changes in members' equity and cash flows for the
years ended December 31, 2000, 1999 and 1998. These financial statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.

   We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

   In our opinion, the financial statements referred to above represent fairly,
in all material respects, the financial position of EBS Litigation, L.L.C. as
of December 31, 2000 and 1999, and the results of its operations and its cash
flows for the years ended December 31, 2000, 1999 and 1998, in conformity with
generally accepted accounting principles.

                                            /s/ Rubin, Brown, Gornstein & Co.,
                                            LLP  ______________________________
                                            Rubin, Brown, Gornstein & Co., LLP

February 28, 2001

                                       12
<PAGE>

                             EBS Litigation, L.L.C.

                                 Balance Sheet

                           December 31, 2000 and 1999

<TABLE>
<CAPTION>
                                                              December 31,
                                                          ---------------------
                                                             2000       1999
                                                          ---------- ----------
<S>                                                       <C>        <C>
Assets
Cash and cash equivalents
  Available for general operations......................  $1,545,066 $1,902,954
Prepaid insurance.......................................      52,630     67,315
Interest receivable.....................................       7,450      7,953
Miscellaneous receivable................................       5,000     18,261
                                                          ---------- ----------
    Total assets........................................  $1,610,146 $1,996,483
                                                          ========== ==========
Liabilities
Accrued expenses........................................     102,971    102,414
                                                          ---------- ----------
    Total liabilities...................................     102,971    102,414
                                                          ---------- ----------
Members' equity:
Membership Units (Class A--10,000,000 authorized, issued
 and outstanding at December 31, 2000 and 1999, Class
 B--0 authorized, issued and outstanding at December 31,
 2000 and 1999)
Retained earnings.......................................   1,507,175  1,894,069
                                                          ---------- ----------
    Total members' equity...............................   1,507,175  1,894,069
                                                          ---------- ----------
    Total liabilities and members' equity...............  $1,610,146 $1,996,483
                                                          ========== ==========
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       13
<PAGE>

                             EBS Litigation, L.L.C.

                            Statements of Operations

              For the Years Ended December 31, 2000, 1999 and 1998

<TABLE>
<CAPTION>
                                                       December 31,
                                              --------------------------------
                                                2000       1999        1998
                                              ---------  ---------  ----------
<S>                                           <C>        <C>        <C>
Income:
Interest..................................... $  98,160  $  92,376  $  388,168
Defendant payment revenue....................     3,708        --    4,981,595
                                              ---------  ---------  ----------
    Total income............................. $ 101,868  $  92,376  $5,369,763
                                              =========  =========  ==========
Expenses:
Legal fees................................... $ 271,507  $  63,573  $  288,877
Insurance....................................    84,685     88,767      97,343
Accounting fees..............................    60,654     37,415      38,487
Transfer agent and settlement administration
 fees........................................    38,000     74,000      76,588
Manager fees.................................    26,816     32,293      94,945
Other........................................     7,100      2,679      75,198
                                              ---------  ---------  ----------
    Total expenses...........................   488,762    298,727     671,438
                                              ---------  ---------  ----------
Net (loss) income............................ $(386,894) $(206,351) $4,698,325
                                              =========  =========  ==========
</TABLE>



   The accompanying notes are an integral part of these financial statements.

                                       14
<PAGE>

                             EBS Litigation, L.L.C.

                    Statement of Changes in Members' Equity

              For the Years Ended December 31, 2000, 1999 and 1998

<TABLE>
<CAPTION>
                          Class A     Class B
                         Membership  Membership   Paid-in      Retained
                           Units       Units      Capital      Earnings       Total
                         ----------  ---------- -----------  ------------  ------------
<S>                      <C>         <C>        <C>          <C>           <C>
Balance, January 1,
 1998...................  9,064,140    935,860  $ 2,000,000  $  9,922,436  $ 11,922,436
Capital distribution....        --         --    (2,000,000)  (11,732,812)  (13,732,812)
Units transferred.......    936,138   (936,138)         --            --            --
Units and proceeds
 returned from
 June distribution......       (278)       278          --            173           173
Current year income.....        --         --           --      4,698,325     4,698,325
                         ----------   --------  -----------  ------------  ------------
Balance, December 31,
 1998................... 10,000,000        --           --      2,888,122     2,888,122
Capital distribution....        --         --           --       (787,722)     (787,722)
Current year loss.......        --         --           --       (206,331)     (206,331)
                         ----------   --------  -----------  ------------  ------------
Balance, December 31,
 1999................... 10,000,000        --           --      1,894,069     1,894,069
Current year loss.......        --         --           --       (386,894)     (386,894)
                         ----------   --------  -----------  ------------  ------------
Balance, December 31,
 2000................... 10,000,000        --   $       --   $  1,507,175  $  1,507,175
                         ==========   ========  ===========  ============  ============
</TABLE>




   The accompanying notes are an integral part of these financial statements.

                                       15
<PAGE>

                             EBS Litigation, L.L.C.

                            Statement of Cash Flows

              For the Years Ended December 31, 2000, 1999 and 1998

<TABLE>
<CAPTION>
                                          For the years ended December 31,
                                         -------------------------------------
                                            2000        1999          1998
                                         ----------  -----------  ------------
<S>                                      <C>         <C>          <C>
Cash flows from operating activities:
  Net (loss) income..................... $ (386,894) $  (206,331) $  4,698,325
  Reconciliation of net (loss) income to
   cash flows provided by (used in)
   operating activities:
    Decrease (increase) in prepaid
     insurance..........................     14,685       (1,233)      (66,082)
    Decrease (increase) in miscellaneous
     receivables........................     13,261      (18,261)          --
    Increase (decrease) in accrued
     expenses...........................        557      (59,146)       14,301
    Decrease in interest receivable.....        503        3,607        36,939
                                         ----------  -----------  ------------
      Cash flows (used in) provided by
       operating activities.............   (357,888)    (281,364)    4,683,483
                                         ----------  -----------  ------------
Cash flows from financing activities:
  Capital distribution, net.............        --      (787,722)  (13,732,639)
                                         ----------  -----------  ------------
      Cash flows used in financing
       activities.......................        --      (787,722)  (13,732,639)
                                         ----------  -----------  ------------
Net decrease in cash and cash
 equivalents............................   (357,888)  (1,069,086)   (9,049,156)
Cash and cash equivalents at beginning
 of period..............................  1,902,954    2,972,040    12,021,196
                                         ----------  -----------  ------------
Cash and cash equivalents at end of
 period................................. $1,545,066  $ 1,902,954  $  2,972,040
                                         ==========  ===========  ============
</TABLE>



   The accompanying notes are an integral part of these financial statements.


                                       16
<PAGE>

                             EBS Litigation, L.L.C.

                         Notes to Financial Statements

                           December 31, 2000 and 1999

1. Description of Business

   EBS Litigation, L.L.C. (the "Company") is governed by a Members Agreement,
dated as of September 25, 1997 (the "Members Agreement"). Pursuant to the
Members Agreement, the Company's purposes are to (a) prosecute, settle and/or
liquidate the Unresolved Avoidance Claims relating to the distribution by
Edison Brothers Stores, Inc. ("Edison") of approximately 4.4 million shares of
common stock of Dave & Busters, Inc. to holders of Edison common stock in the
form of a dividend and all related transactions (the "Unresolved Avoidance
Claims"), (b) receive and administer the cash proceeds of the Unresolved
Avoidance Claims, and (c) distribute the net proceeds to the appropriate
holders of Membership Units (the "Members") in accordance with the Members
Agreement.

2. Summary of Significant Accounting Policies

   This summary of significant accounting policies is presented to assist in
evaluating the Company's financial statements included in this report. These
principles conform to generally accepted accounting principles. The preparation
of financial statements in conformity with generally accepted accounting
principles requires that management make estimates and assumptions which impact
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Adjustments are of a normal and recurring nature. Actual
results could differ from those estimates.

 Basis of Presentation

   These financial statements include the accounts of the Company for the
periods from January 1, 1998 through December 31, 1998, January 1, 1999 through
December 31, 1999, and January 1, 2000 through December 31, 2000.

 Cash and Cash Equivalents

   Cash consists of amounts held in an account in the Company's name at a
highly-rated financial institution, which funds are invested in an
institutional money market fund investing solely in direct obligations of the
United States Government.

   The Company's cash and cash equivalents represent the sum of the aggregate
Dave and Busters, Inc. Spinoff Settlement Proceeds and the L.L.C. Funding
Amount. These funds will be used for general operations. Any amounts not used
in general operations will be made available for future distributions to Class
A Membership Unit holders.

 Accrued Expenses

   Accrued expenses include amounts payable to service providers and other
vendors. Amounts are payable within one year.

 Defendant Payment Revenue

   Defendant payment revenue is determined on an accrual basis and represents
settlements with individual defendants of Avoidance Claims during the period.

                                       17
<PAGE>

                             EBS Litigation, L.L.C.

                   Notes to Financial Statements--(Continued)


 Interest

   Interest income is determined on the accrual basis. Interest receivable is
due to be received within one year.

 Expenses

   All expenses of the Company are recorded on the accrual basis of accounting.

 Income Taxes

   The Company is not subject to income taxes. Instead the Members report their
distributive share of the Company's profits and losses on their respective
income tax returns.

3. Members' Equity

   On September 25, 1997, Edison transferred its right, title and interest in
the Unresolved Avoidance Claims. In addition, as of September 25, 1997, Edison
was obligated to provide cash funding to the Company of $2.0 million (the "LLC
Funding Amount"), which was subsequently paid to the Company on October 16,
1997. Such transfer and funding were in exchange for 10,00,000 Class B
Membership Units of the Company, which represented all of the outstanding
Membership Units of the Company. On December 12, 1997, in accordance with the
Company's Members Agreement and the Plan of Reorganization, Edison exchanged
9,064,140 Class B Membership Units for 9,064,140 Class A Membership Units of
the Company and simultaneously distributed such Class A Membership Units to
holders of Allowed General Unsecured Claims (as defined in the Plan).

   During 1998, Edison exchanged 936,138 Class B Membership Units fore 936,138
Class A Membership Units of the Company and simultaneously distributed such
Class A units to holders of Allowed General Unsecured Claims.

   During 1998, the Company distributed $13.7 million to holders of Class A
Membership Units. In addition, $0.8 million was retained for holders of the
Class A Membership Units that were distributed in December 1998.

   Also during 1998, certain Class A Membership Unit holders returned 278 Class
A Membership Units to Edison as such Membership Units had been distributed in
error. The distribution proceeds relating to these returned Membership Units
are included in retained earnings and were made available for future
distributions to holders of Class A Membership Units. At December 31, 1999,
Edison has no Class B Membership Units outstanding.

   On February 1, 1999, the Company distributed the $0.8 million reserved
amounts of D&B Spinoff Settlement Proceeds (as defined in the Plan) to holders
of the Class A Membership Units that were distributed in November and December
1998. This represents the entire amount of funds reserved for future holders of
Class A Membership Units.

   During 2000, the Company did not make any distributions to holders of Class
A Membership Units.

                                       18
<PAGE>

ITEM 9--CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

   None.

                                    PART III

ITEM 10--DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

   The Company has no directors and the Manager, Peter N. Wang, acts as the
Company's sole executive officer. Mr. Wang is 52 years old and has been a
shareholder and officer of FWB for the past 20 years. The Manager may resign at
any time or be removed by the holders (the "Requisite Holders") of 65% or more
of the outstanding Class A Membership Units (excluding such holders against
whom the Company holds Unresolved Avoidance Claims), with or without cause, at
any time, such resignation or removal to be effective upon the appointment of a
successor Manager. In the event of the death, resignation, incompetency or
removal of the Manager, the Requisite Holders may appoint a successor Manager
that is not affiliated with Edison. If such appointment does not occur within
90 days, the Manager or the Manager's representative may petition the
Bankruptcy Court for the appointment of a successor Trustee.

ITEM 11--EXECUTIVE COMPENSATION

   The Members Agreement provides that FWB will receive compensation for the
Manager's services to the Company at the standard hourly rates charged for the
Manager's services and the services of other persons at FWB who may assist him
with his duties. The Company is also obligated to reimburse FWB for reasonable
expenses incurred by the Manager and others at FWB in connection with the
performance of the Manager's duties to the Company.

   With respect to services rendered during the year ended December 31, 2000
FWB was paid $1,395 on account of the Manager's services to the Company and
$25,163 on account of services of another attorney at FWB who assisted him with
his duties. The Company also paid FWB $283.49 in expense reimbursement.

   With respect to services rendered during the year ended December 31, 1999,
FWB was paid $2,125 on account of the Manager's services to the Company and
$29,820 on account of services of another attorney at FWB who assisted him. The
Company also paid $90 for the services of a paralegal at FWB and $260 in
expense reimbursement.

   With respect to services rendered during the year ended December 31, 1998,
FWB was paid $9,240 on account of the Manager's services to the Company and
$85,102 on account of the services of another attorney at FWB who assisted him.
The Company also paid $81 for the services of a paralegal at FWB and $521 in
expense reimbursement.

   With respect to services rendered from the Inception Date to December 31,
1997, FWB was paid $6,903 on account of the Manager's services, $20,995 on
account of the services of another attorney at FWB who assisted him, and $218
in expense reimbursement.

                                       19
<PAGE>

ITEM 12--SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

   The following table sets forth certain information regarding the
certificated ownership of the Company's Class A Membership Units of persons
owning more than five percent of the outstanding Class A Membership Units as of
December 31, 2000.

<TABLE>
<CAPTION>
                                      Number of
                                       Class A
   Name and Address of Certificated   Membership Nature of Certificated
   Owner                                Units          Ownership        Percent
   --------------------------------   ---------- ---------------------- -------
   <S>                                <C>        <C>                    <C>
   Swiss Bank Corporation..........   1,593,601  Sole Voting/Investment  15.9%
   Citibank, N.A...................     836,070  Sole Voting/Investment   8.4%
   Loeb Partners Corporation.......   1,176,937  Sole Voting/Investment  11.7%
   Caspian Capital Partners, LP....     698,555  Sole Voting/Investment   6.9%
   Contrarian Capital Advisors,
    L.L.C..........................     678,102  Sole Voting/Investment   6.8%
   Morgens Waterfall Overseas
    Partners.......................     653,314  Sole Voting/Investment   6.5%
</TABLE>

ITEM 13--CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

   None.
                                    PART IV

ITEM 14--EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.

(a)1.  The following financial statements and the report thereon of Rubin,
       Brown, Gornstein & Co., LLP are included in Item 8 of this report:

    Report of Independent Public Accountants

    Balance Sheets as of December 31, 2000 and 1999

    Statements of Operations for the Years Ended December 31, 2000, 1999
    and 1998

    Statements of Changes in Members' Equity for the Years Ended December
    31, 2000, 1999 and 1998

    Statements of Cash Flows for the Years Ended December 31, 2000, 1999
    and 1998

    Notes to Financial Statements

  2. Financial Statement Schedules:

       All schedules are omitted since the required information is not
    present in amounts sufficient to require submission of the schedules or
    because the information required is included in the financial
    statements and notes thereto.

(b) The Company has not filed any reports on Form 8-K during the last quarter
    of the period covered by this Annual Report on Form 10-K.

(c) Exhibits

<TABLE>
<CAPTION>
   Exhibit
   Number  Description
   ------- -----------
   <C>     <S>
    2.1*   Amended Joint Plan of Reorganization of Edison Brothers Stores, Inc.

    3.1*   EBS Litigation, L.L.C. Certificate of Formation

    3.2*   EBS Litigation, L.L.C. Membership Agreement

    23.1   Consent of Independent Public Accountants
</TABLE>
--------
   * Incorporated by reference to the Company's Form 10 originally filed with
     the Securities and Exchange Commission on July 29, 1998 (SEC File No.000-
     24711).

                                       20
<PAGE>

                                   SIGNATURES

   Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                                          EBS Litigation, L.L.C.
                                          (Registrant)

                                                     /s/ Peter N. Wang
                                          By: _________________________________
                                                          Peter N. Wang
                                                             Manager

Dated March 29, 2001

                                       21
<PAGE>

                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
 Exhibit
 Number                 Description                          Location
 ------- -----------------------------------------   -------------------------
 <C>     <S>                                         <C>
         Amended Joint Plan of Reorganization of
   2.1*  Edison Brothers Stores, Inc.                Incorporated by reference
         EBS Litigation, L.L.C. Certificate of
   3.1*  Formation                                   Incorporated by reference
         EBS Litigation, L.L.C. Membership
   3.2*  Agreement                                   Incorporated by reference
  23.1   Consent of Independent Public Accountants   Filed herewith
</TABLE>
--------
   * Incorporated by reference to the Company's Form 10 originally filed with
     the Securities and Exchange Commission on July 29, 1998 (SEC File No.000-
     24711).

                                       22