0000950129-01-503130.txt : 20011009
0000950129-01-503130.hdr.sgml : 20011009
ACCESSION NUMBER: 0000950129-01-503130
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 9
CONFORMED PERIOD OF REPORT: 20010914
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20010921
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC /TX/
CENTRAL INDEX KEY: 0000795662
STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860]
IRS NUMBER: 760502785
STATE OF INCORPORATION: DE
FISCAL YEAR END: 0930
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-10059
FILM NUMBER: 1742256
BUSINESS ADDRESS:
STREET 1: 1200 SMITH ST, SUITE 1900
CITY: HOUSTON
STATE: TX
ZIP: 77002-4312
BUSINESS PHONE: 7136503700
MAIL ADDRESS:
STREET 1: 1200 SMITH ST SUITE 1900
CITY: HOUSTON
STATE: TX
ZIP: 77002-4312
FORMER COMPANY:
FORMER CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC
DATE OF NAME CHANGE: 19960828
FORMER COMPANY:
FORMER CONFORMED NAME: STERLING CHEMICALS INC
DATE OF NAME CHANGE: 19920703
FORMER COMPANY:
FORMER CONFORMED NAME: STERLING CHEMICALS INC /TX/
DATE OF NAME CHANGE: 19961218
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: STERLING CHEMICAL INC
CENTRAL INDEX KEY: 0001014669
STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860]
IRS NUMBER: 760502785
STATE OF INCORPORATION: DE
FISCAL YEAR END: 0930
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 333-04343-01
FILM NUMBER: 1742257
BUSINESS ADDRESS:
STREET 1: 1200 SMITH STREET
STREET 2: SUITE 1900
CITY: HOUSTON
STATE: TX
ZIP: 77002-4312
BUSINESS PHONE: 7136503700
MAIL ADDRESS:
STREET 1: C/O STERLING GROUP INC
STREET 2: EIGHT GREENWAY PLAZA, SUITE 702
CITY: HOUSTON
STATE: TX
ZIP: 77046
FORMER COMPANY:
FORMER CONFORMED NAME: STX CHEMICALS CORP
DATE OF NAME CHANGE: 19960516
8-K
1
h90773e8-k.txt
STERLING CHEMICALS HOLDINGS INC - SEPT 14 2001
1
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 8-K
CURRENT REPORT FILED PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT
(DATE OF EARLIEST EVENT REPORTED): SEPTEMBER 14, 2001
STERLING CHEMICALS HOLDINGS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 1-00059 76-0185186
(STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER
JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.)
OR ORGANIZATION)
1200 SMITH STREET, SUITE 1900
HOUSTON, TEXAS 77002-4312
(ADDRESS OF PRINCIPAL
EXECUTIVE OFFICES
AND ZIP CODE)
(713) 650-3700
(REGISTRANT'S TELEPHONE NUMBER,
INCLUDING AREA CODE)
------------------------
STERLING CHEMICALS INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 333-04343-01 76-0502785
(STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER
JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.)
OR ORGANIZATION)
1200 SMITH STREET, SUITE 1900
HOUSTON, TEXAS 77002-4312
(ADDRESS OF PRINCIPAL
EXECUTIVE OFFICES
AND ZIP CODE)
(713) 650-3700
(REGISTRANT'S TELEPHONE NUMBER,
INCLUDING AREA CODE)
------------------------
================================================================================
2
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE
On July 16, 2001, Sterling Chemicals Holdings, Inc. and its
subsidiaries Sterling Chemicals Inc., Sterling Chemicals Energy, Inc., Sterling
Fibers, Inc., Sterling Chemicals International, Inc., Sterling Canada Inc.,
Sterling Pulp Chemicals US, Inc. and Sterling Pulp Chemicals Inc. filed
voluntary petitions for reorganization under Chapter 11 of the United States
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, in Houston, Texas (the "Bankruptcy Court"). These petitions
were styled as In re Sterling Chemicals Holdings, Inc., In re Sterling Chemicals
Inc., In re Sterling Chemicals Energy, Inc., In re Sterling Fibers, Inc., In re
Sterling Chemicals International, Inc., In re Sterling Canada Inc., In re
Sterling Pulp Chemicals US, Inc. and In re Sterling Pulp Chemicals Inc.,
respectively, Case Numbers 01-378[05-12]-H4-11, (05-12 being the different case
numbers). Each of Sterling Chemicals Holdings, Inc. and these other entities are
being operated as debtors-in-possession under the Bankruptcy Code.
Attached are exhibits containing monthly operating reports filed by the
debtors with the Bankruptcy Court for August 2001. The monthly operating reports
filed herewith contain unaudited financial information that is subject to future
reconciliations and adjustments that may materially affect stockholder's equity
(deficit).
ITEM 7. EXHIBITS
Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals
Holdings, Inc. for August 2001.
Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc.
for August 2001.
Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy,
Inc. for August 2001.
Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for
August 2001.
Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals
International, Inc. for August 2001.
Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for
August 2001.
Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals
US, Inc. for August 2001.
-2-
3
Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals,
Inc. for August 2001.
-3-
4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
each of the Registrants has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
STERLING CHEMICALS HOLDINGS, INC.
Date: September 21, 2001
By: /s/ DAVID G. ELKINS
-------------------------------------
David G. Elkins, President
STERLING CHEMICALS INC.
Date: September 21, 2001
By: /s/ DAVID G. ELKINS
-------------------------------------
David G. Elkins, President
-4-
5
EXHIBIT INDEX
Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals
Holdings, Inc. for August 2001.
Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc.
for August 2001.
Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy,
Inc. for August 2001.
Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for
August 2001.
Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals
International, Inc. for August 2001.
Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for
August 2001.
Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals
US, Inc. for August 2001.
Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals,
Inc. for August 2001.
EX-99.1
3
h90773ex99-1.txt
MONTHLY OPERATING REPORT FOR STERLING CHEM HOLDING
1
EXHIBIT 99.1
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: STERLING CHEMICALS HOLDINGS, INC. PETITION DATE: 07/16/01
CASE NUMBER: 01-37805-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2001
MONTH 7/16/01-8/31/01
--------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ -- $ -- $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (1,772) $ -- $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $(66,942) $ -- $ -- $ -- $ -- $ --
PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
TOTAL DISBURSEMENTS (MOR-7) $ -- $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy
Court and a COPY MUST BE SENT to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
See attachment 2 DATE
-------------------------------
CASUALTY YES (x) NO ( ) 08-01-02
LIABILITY YES (x) NO ( ) 07-01-02
VEHICLE YES (x) NO ( ) 07-01-02
WORKER'S YES (x) NO ( ) 07-01-02
OTHER YES (x) NO ( ) various
ATTORNEY NAME: Jeff Spiers
FIRM: Andrews & Kurth LLP
ADDRESS: 600 Travis
ADDRESS: Suite 4200
CITY, STATE ZIP: Houston, TX 77002
TELEPHONE: 713-220-4103
Are all accounts receivable being collected within terms? NO
Are all post-petition liabilities, including taxes, being paid with terms? YES
Have any pre-petition liabilities been paid? YES If so, describe
See Attachment 3
--------------------------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES
Were any assets disposed of outside the normal course of business? NO
If so, describe
----------------------------------------------------------------
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization?
A Plan of Reorganization is currently being developed.
--------------------------------------------------------------------------------
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED /s/ PAUL VANDERHOVEN
-----------------------------------------------
(ORIGINAL SIGNATURE)
TITLE VP Finance, CFO
-----------------------------------------------
MOR-1
2
Page 1 of 3
9/14/01
SUMMARY OF COVERAGES
FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 7/1/02 Total annual
Liability. Zurich US remuneration
Ded. $250,000 per accident.
2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/02 Number of vehicles
Ded. $25,000 per occurrence. Zurich Amer. owned and leased
3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/02 Annual revenues and
Excess to $1 Million SIR aggregate. Excess $1,000,000 GL remuneration
$2,000,000 AL.
4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 7/1/02 Included
aggregate. (Reinsured
through AIG.)
5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/02 Flat charge - based
aggregate. on exposures and
risk potential
6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 7/1/02 Flat charge - based
aggregate. Lore on exposures and
risk potential
7 Excess Liability $50,000,000 Zurich 1 year 7/1/02 Flat charge
8 Excess Liability $50,000,000 AIG 1 year 7/1/02 Flat Charge
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
1 Workers Compensation $195,653 - Audit at (AFCO)
expiration. Plus all losses within
deductible. Paid through 10/1/01.
2 Automobile Liability $92,955 (AFCO) Paid through 10/1/01.
3 Excess Liability $451,090 Annual - Half on 7/1/01;
Excess to $1 Million SIR 1/2 on 1/1/02. Paid through 1/1/02.
4 Excess Liability Included - Paid through 1/1/02.
5 Excess Liability $295,000 - Paid through expiration.
6 Excess Liability $241,886 - Paid through expiration.
7 Excess Liability $109,210 - Paid through expiration.
8 Excess Liability $80,938 - Paid through expiration.
3
Page 2 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
9 Excess Liability $50,000,000 Starr Excess 1 year 7/1/02 Flat Charge
10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/02 Based on volume
Operators Liability and Ded. $25,000 per occurrence Co. thru Marsh throughput and no.
Charterer's Legal $100,000 pollution London chartered vessels.
Liability per occurrence.
11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 7/1/02 Volume thru put &
P&L Brockbank & vessels docked.
Liberty Und.
12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/02 Flat
Brockbank & N.Y.
Marine Gen. Ins.
13 Property Damage, $ Total insured values combined Munich Re: et. al. 1 year 8/1/02 Property Values - PD
Business Interruption all-risk. Sublimits: Flood - Income values - BI
and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection
mil., $10 mil extra expense. available; many
Ded.: Petrochem $1,000,000 PD, other factors.
10 day - BI. Pulp & Fibers - $1
mil. PD/BI.
14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/02 Various
Liability policy year. Ded. $1,000,000 Indemnity
Corp. Reimb.
15 Excess Directors & $10,000,000 excess of Primary D&O Hartford 1 year 8/21/02 Various
Officers Liability
16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/02 Various
Liability Co.
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
9 Excess Liability $62,500 - Paid through expiration.
10 Marine Terminal $27,000 (AFCO) Min. premium & deposit.
Operators Liability and Paid through 10/1/01.
Charterer's Legal
Liability
11 Excess Marine Liability $57,375 - Paid through 10/1/01.
12 Excess Marine Liability $21,250 - Paid through 10/1/01.
13 Property Damage, Annual - Financed through AFCO.
Business Interruption $4.0M (est.) Paid through 10/1/01.
and Boiler & Machinery
14 Directors & Officers $316,000 (15 mos.) Paid through
Liability expiration.
15 Excess Directors & $223,700 (15 mos.) Paid through
Officers Liability expiration.
16 Directors & Officers $115,000 (15 mos.) Paid through
Liability expiration.
4
Page 3 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/01 Various
Depositor's Forgery Agreement. Ded. $25,000. Chubb
18 Hull & Machinery and Barge Hull Value Zurich-American 1 year 7/1/02 Hull & Machinery
Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values
Ded. $5,000 per loss.
$1,000,000 P&I
19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/02 Hull gross
Section B - $5,000,000 Insurance Syndicate registered tonnage
CERCLA - $5,000,000
20 Marine and Railroad Cargo $12,000,000 any one vessel Mutual Marine 1 year Continuing Declared shipment
$1,000,000 any one barge values
$1,000,000 any one rail ship.
$100,000 any one truck
21 Office Contents $1,000,000 Phoenix Assur. 1 year 10/1/01 Limit
22 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
23 Fiduciary $10,000,000 National Union 1 year 8/21/02 Various
Ded. $250,000 per occurrence
24 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/02 Loss Potential
Liability (Petrochem & $8,000,000 aggregate (Indian Harbor)
Fibers)
25 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated
Bonds - Petrochem Indemnity Closure/Post Closure
Costs
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
17 Employee Dishonesty & $20,000 Paid through 10/1/01.
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO) Paid through 10/1/01.
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO) Paid through 10/1/01.
20 Marine and Railroad Cargo $40,000 Annual Approx. Paid through
10/1/01.
21 Office Contents $4,500 - Paid through expiration.
22 Duty Drawback Bond $2,875 - Paid through 11/17/01.
23 Fiduciary $22,000 - Financed through Imperial.
Renewal binder issued. Processing
annual payment.
24 Environmental Impairment $106,200 - Financed through AFCO.
Liability (Petrochem & Paid through 1/15/02.
Fibers)
25 Closure/Post Closure $40,610 Paid through 1/1/02.
Bonds - Petrochem
ANNUAL TOTAL: $3,459,260 *
* Total fluctuates due to cargo premiums dependence upon volume of CIF export
shipments and annual audits of Worker's Compensation and Marine Terminal
policies.
5
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING PULP CHEMICALS, INC. CASE #01-37812-H4-11
Norfolk Southern Railway $ 62,827.78 Shippers
CSX Transportation $ 8,882.00 Shippers
Albany Scale Co. $ 4,096.75 Critical Vendor
Davidson Transport $ 5,797.49 Shippers
--------------
TOTAL $ 81,604.02
==============
STERLING PULP US, INC. CASE #01-37811-H4-11
Canada Customs & Revenue Agency $ 1,840.45
==============
STERLING FIBERS, INC. CASE #01-37808-H4-11
Crocker Technical Papers $ 77,244.52 Critical Vendor
Direct Line Commodities $ 18,530.10 Critical Vendor
Celedon Trucking Services $ 20,986.49 Shippers
Mini Fibers, Inc. $ 127,665.67 Critical Vendor
DeRijke $ 12,129.02
Engineered Fibers Tech (EFT) $ 14,101.44 Critical Vendor
CSX Transportation $ 14,411.88 Shippers
Shaskikumar Daftary $ 238.97 Independent contractor
Charlie Hummel $ 2,160.00 Independent contractor
Ceridian Employer Services $ 246.67 Payroll/Benefit Admin payroll service provider
A Agrawal $ 2,522.32 Payroll/Benefit Admin (expense reimbursement)
H Chever $ 521.80 Payroll/Benefit Admin (expense reimbursement)
NDCunningham $ 390.00 Shippers
Affliated Brokers $ 97.04 Shippers
J Hagerott $ 1,757.02 Payroll/Benefit Admin (expense reimbursement)
B Montz $ 752.79 Payroll/Benefit Admin (expense reimbursement)
--------------
TOTAL $ 293,755.73
==============
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
Aubrey Cannon $ 325.58 Payroll/Benefit Admin (expense reimbursement)
Charles Cannon $ 16.38 Payroll/Benefit Admin (expense reimbursement)
Karol Cripps $ 45.00 Payroll/Benefit Admin (expense reimbursement)
Greg Escamilla $ 80.25 Payroll/Benefit Admin (expense reimbursement)
Gene Kenyon $ 1,327.42 Payroll/Benefit Admin (expense reimbursement)
Dennis Kos $ 324.78 Payroll/Benefit Admin (expense reimbursement)
Wes Noel $ 62.10 Payroll/Benefit Admin (expense reimbursement)
Jack Pollock $ 45.72 Payroll/Benefit Admin (expense reimbursement)
--------------
Total Employee Exp. Reimbursements $ 2,227.23
--------------
Blue Cross & Blue Shield of Florida $ 170,716.53 payroll/benefit admin
Crawford & Company $ 1,819.85 Workers Comp
AFCO $ 10,220.80 Insurance Coverage
Bayport Occupational Med $ 11,812.00 Independent Contractor
BNSF Railroad $ 157,944.95 Shippers
Ceridian $ 1,277.29 payroll/benefit admin
Federal Express $ 1,502.71 Shippers
Imperial Premium Finance $ 10,584.23 Insurance Coverage
Jeil Marine $ 26,629.16 Shippers
Prescription Solutions $ 178,558.97 payroll/benefit admin
Union Pacific Railroad $ 48,700.00 Shippers
Woolim Shipping $ 68,676.82 Shippers
--------------
Total Vendor Payments $ 688,443.31
--------------
CIT Revolving Credit Facility $95,279,975.09
--------------
TOTAL $95,970,645.63
==============
--------------
TOTAL DEBTOR PREFILE LIAB. PAID $96,347,845.83
--------------
SUMMARY
CIT Revolving Credit Facility $95,279,975.09
Critical Vendors $ 241,638.48
Shippers $ 416,846.32
Other $ 409,385.94
--------------
TOTAL $96,347,845.83
==============
6
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED JULY 16, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING CANADA,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,362 $ 9,138 $ (1,208) $ 271
Trade accounts receivable, net - 43,168 327 3,662
Other Receivables - 1,268 - 4,242
Due from affiliates - 21,298 9,115 20,231
Inventories - 30,554 - -
Prepaid expenses 12 1,390 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,374 106,816 8,234 28,406
Property, plant and equipment, net - 131,928 3,482 -
Deferred income taxes - - - -
Investments-Third Party - 6,262 - -
Investments in Subs 35,060 95,073 - 297,161
Other assets 7,354 26,496 4,762 14,198
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 67,152
Secured Debt Accrued Interest * - 14,176 - 4,201
Revolver - 90,018 - -
Unsecured debt 192,879 297,064 1,144 270,594
Other / Intercompany - 201,020 - 5,016
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - -
Less: Unearned compensation - (458) - -
Redeemable preferred stock 26,541 (15,448) - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 48
Additional paid-in capital (367,555) (229,904) - 83,348
Retained earnings 191,923 (215,396) 15,333 (90,594)
Pension adjustment - (134) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(175,632) (445,362) 15,334 (7,198)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,632) (447,899) 15,334 (7,198)
TOTAL LIABILITIES AND EQUITY $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING PULP STERLING PULP STERLING FIBERS STERLING CHEMICALS
CHEMICALS US, INC. CHEMICALS, INC. INC. INT'L, INC.
ASSETS 01-37811-H4-11 01-37812-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 309 $ 714 $ -
Trade accounts receivable, net 1,035 4,546 4,639 -
Other Receivables - - 37 2,971
Due from affiliates 156 3,077 - -
Inventories 339 1,725 10,983 -
Prepaid expenses - - - (283)
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,530 9,657 16,373 2,688
Property, plant and equipment, net - 45,184 6,407 -
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs 3,199 - - -
Other assets - - 1,828 2,811
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - - 57,221 3,652
Secured Debt Accrued Interest * - - 3,580 228
Revolver - - - -
Unsecured debt 236 62,551 62,331 840
Other / Intercompany - - 14,125 -
Deferred income taxes - -
Common stock held by new ESOP - - 35 -
Less: Unearned compensation - - 458 -
Redeemable preferred stock - - 15,448 -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - - - -
Additional paid-in capital (5,370) 3,199 9,676 -
Retained earnings (877) (10,909) (138,266) 779
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
4,493 (7,710) (128,590) 779
Treasury stock at cost
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 4,493 (7,710) (128,590) 779
TOTAL LIABILITIES AND EQUITY $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 10,586
Trade accounts receivable, net - 57,377
Other Receivables (2,971) 5,547
Due from affiliates (50,909) 2,968
Inventories - 43,601
Prepaid expenses - 1,119
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (53,880) 121,198
Property, plant and equipment, net - 187,001
Deferred income taxes - -
Investments-Third Party - 6,262
Investments in Subs (398,721) 31,772
Other assets (1) 57,448
----------------------------------
TOTAL ASSETS $(452,602) $ 403,681
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (3,808) 18,377
Revolver - 90,018
Unsecured debt (129,602) 758,037
Other / Intercompany (201,020) 19,141
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 26,541
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (57,298) (553,164)
Retained earnings - (248,007)
Pension adjustment - (134)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(57,299) (801,185)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (57,299) (803,722)
TOTAL LIABILITIES AND EQUITY $(452,602) $ 403,681
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
7
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED AUGUST 31, 2001
(IN THOUSANDS)(UNAUDITED)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS US,
HOLDINGS INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,369 $ 2,157 $ -- $ 508 $ --
Trade accounts receivable, net -- 40,055 95 2,445 1,204
Other Receivables -- 3,307 -- 4,260 --
Due from affiliates -- 18,867 11,642 43,376 785
Inventories -- 26,875 -- -- 253
Prepaid expenses 35 2,390 -- -- --
Deferred income tax benefit -- -- -- -- --
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,404 93,651 11,737 50,589 2,242
Property, plant and equipment, net -- 129,048 3,389 -- --
Deferred income taxes -- -- -- -- --
Investments-Third Party -- 6,262 -- -- --
Investments in Subs 35,060 95,073 -- 297,161 3,199
Other assets 7,258 20,622 4,339 7,848 --
----------------------------------------------------------------------------------
TOTAL ASSETS $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2 95,939 2,240 20,216 780
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 67,152 --
Secured Debt Accrued Interest * -- 17,701 -- 5,240 --
Unsecured debt 192,878 277,993 1,351 265,001 231
Other / Intercompany -- 201,020 -- 4,904 --
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 254 -- -- --
Less: Unearned compensation -- (458) -- -- --
Redeemable preferred stock 26,541 (15,203) -- -- --
STOCKHOLDERS' EQUITY: --
Common stock, $.01 par value -- 75 1 48 --
Additional paid-in capital (367,555) (229,904) -- 83,348 5,370
Retained earnings-Filing Date 191,923 (215,396) 15,333 (90,594) (877)
Retained earnings-Post Filing Date (67) (12,538) 540 283 (63)
Pension adjustment -- (135) -- -- --
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- (3) -- -- --
---------------------------------------------------------------------------------
(175,699) (457,901) 15,874 (6,915) 4,430
Treasury stock at cost -- (2,537) -- -- --
---------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,699) (460,438) 15,874 (6,915) 4,430
TOTAL LIABILITIES AND EQUITY $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
=================================================================================
$ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ (79) $ 361 $ -- $ -- $ 4,316
Trade accounts receivable, net 4,177 4,724 -- -- 52,700
Other Receivables 37 -- -- 7,604
Due from affiliates 6,855 2,811 3,094 (83,255) 4,175
Inventories 1,693 8,863 -- -- 37,684
Prepaid expenses -- (283) -- 2,142
Deferred income tax benefit -- -- -- -- --
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,646 16,796 2,811 (83,255) 108,621
Property, plant and equipment, net 44,633 6,352 -- -- 183,422
Deferred income taxes -- -- -- -- --
Investments-Third Party -- -- -- -- 6,262
Investments in Subs -- -- -- (398,721) 31,772
Other assets -- 1,452 2,777 (1) 44,295
--------------------------------------------------------------------------
TOTAL ASSETS $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2,620 3,433 13 (27,514) 97,729
Pre-Petition liabilities:
Notes Payable - Secured * -- 57,221 3,652 (60,873) 295,000
Secured Debt Accrued Interest * -- 4,465 285 (4,750) 22,941
Unsecured debt 62,478 73,333 840 (130,521) 743,584
Other / Intercompany -- -- (201,020) 4,904
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 35 -- -- 289
Less: Unearned compensation -- 458 -- -- --
Redeemable preferred stock -- 15,448 -- -- 26,786
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- -- -- (1) 123
Additional paid-in capital 3,199 9,676 -- (57,298) (553,164)
Retained earnings-Filing Date (10,909) (138,266) 779 -- (248,007)
Retained earnings-Post Filing Date (109) (1,203) 19 -- (13,138)
Pension adjustment -- -- -- -- (135)
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- -- -- -- (3)
--------------------------------------------------------------------------
(7,819) (129,793) 798 (57,299) (814,324)
Treasury stock at cost -- -- -- -- (2,537)
--------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (7,819) (129,793) 798 (57,299) (816,861)
TOTAL LIABILITIES AND EQUITY $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
$ -- $ -- $ -- $ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage
is pushed down to the subsidiaries.
MOR 2 - 3
8
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
FOR THE PERIOD ENDING AUGUST 31, 2001
(IN THOUSANDS)
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS, US, CHEMICALS,
HOLDINGS INC. INC. ENERGY, INC. INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 28,667 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- 48 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- 925 -- -- -- 40
TOTAL TAXES PAYABLE $ -- $ 973 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION -- 41,472 -- -- -- --
ACCRUED INTEREST PAYABLE -- 234 -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- 2,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 22,593 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 95,939 $ 2,240 $ 20,216 $ 780 $ 2,620
====================================================================================================================================
-------------------------------------------------------------
STERLING STERLING
FIBERS CHEMICALS
INC. INT'L, INC. DEBTORS
01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 13 $ (8,105) $ 28,458
ROYALTY AND REVENUE PAYABLE -- -- -- --
NOTES PAYABLE -- -- (19,409) --
TAX PAYABLE: -- -- -- --
Federal Payroll Taxes 5 -- -- 5
State Payroll & Sales 13 -- -- 61
Ad Valorem Taxes -- -- -- --
Other Taxes (Property/franchise) 389 -- -- 1,354
TOTAL TAXES PAYABLE $ 407 $ -- $ -- $ 1,420
SECURED DEBT POST-PETITION -- -- -- 41,472
ACCRUED INTEREST PAYABLE -- -- -- 234
*ACCRUED PROFESSIONAL FEES: -- -- -- 2,000
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- 24,145
2. Lease Operating Expenses/Capital -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 13 $ (27,514) $ 97,729
=====================================================================================================
*Payment Requires Court Approval
MOR-4
9
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 8/31/01
------------------
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- ------- ----------- --------- ----------- ----------- -------------
0-30 $97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
31-60 -- -- -- -- --
61-90 -- -- -- -- --
91 + -- -- -- -- --
------- ----------- --------- ----------- ----------- -------------
TOTAL $97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
======= =========== ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
---------
0-30 $ 42,120 $ 42,120 $ -- $ -- $ -- $ --
31-60 4,151 4,151 -- -- -- --
61-90 1,154 1,154 -- -- -- --
91 + 5,274 5,274 -- -- -- --
-------- -------- -------- -------- -------- --------
TOTAL $ 52,699 $ 52,699 $ -- $ -- $ -- $ --
======== ======== ======== ======== ======== ========
(1) MOR-5 is presented only on a consolidated debtor basis.
(2) Days aging from due date.
(3) Days aging from invoice due date.
MOR-5
10
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS) CASE NUMBER: See Each Company Below
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STATEMENT OF INCOME (LOSS)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 36,458,061 $ 327,939 $ 1,688,935 $ 595,406
TOTAL COST OF REVENUES -- 38,535,886 327,939 29,600 624,624
GROSS PROFIT $ -- $ (2,077,825) $ -- $ 1,659,335 $ (29,218)
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,772 $ 858,049 $ -- $ 406,973 $ 32,298
Insiders Compensation -- 173,179 -- -- --
Professional Fees -- 2,015,000 -- -- --
Other (attach list) -- 539,842 (539,842) -- --
TOTAL OPERATING EXPENSE $ 1,772 $ 3,586,070 $ (539,842) $ 406,973 $ 32,298
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (1,772) $ (5,663,895) $ 539,842 $ 1,252,362 $ (61,516)
INTEREST EXPENSE (includes amort of debt fees) (6,595) 3,553,595 -- 250,944 --
DEPRECIATION 71,765 3,293,410 -- 718,977 --
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 65,170 $ 6,847,005 $ -- $ 969,921 $ --
=================================================================================================================================
NET INCOME BEFORE TAXES $ (66,942) $ (12,510,900) $ 539,842 $ 282,441 $ (61,516)
INCOME TAXES -- 27,000 -- -- --
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (66,942) $ (12,537,900) $ 539,842 $ 282,441 $ (61,516)
=================================================================================================================================
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 4,044,462 $ 4,472,168 $ 123,655 $ (123,655) $ 47,586,971
TOTAL COST OF REVENUES 1,909,929 4,472,502 -- (123,655) 45,776,825
GROSS PROFIT $ 2,134,533 $ (334) $ 123,655 $ -- $ 1,810,146
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 2,325,050
Insiders Compensation -- -- -- -- 173,179
Professional Fees -- -- -- -- 2,015,000
Other (attach list) -- -- -- -- --
-- --
TOTAL OPERATING EXPENSE $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 4,513,229
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 503,539 $ (209,403) $ 110,646 827,114 (2,703,083)
INTEREST EXPENSE (includes amort of debt fees) -- 921,502 56,498 827,114 5,603,058
DEPRECIATION 612,861 71,658 34,500 -- 4,803,171
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 612,861 $ 993,160 $ 90,998 $ 827,114 $ 10,406,229
==============================================================================================================================
NET INCOME BEFORE TAXES $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,109,312)
INCOME TAXES -- -- -- -- 27,000
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,136,312)
==============================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or frequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
11
CASE NUMBER: SEE EACH COMPANY BELOW
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ 539,842 $ (539,842) $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ 539,842 $ (539,842) $ -- $ --
=================================================================================================================================
STERLING PULP STERLING STERLING
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC. DEBTORS
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ -- $ -- $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
MOR-6 ATTACHMENT
12
CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11
CASH RECEIPTS AND FILING TO
DISBURSEMENTS 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DATE
----------------- ------------- ------ ------ ------ ------ ------ -------------
1. CASH-BEGINNING OF MONTH 1,362,081 -- -- -- -- -- 1,362,081.08
============= ====== ====== ====== ====== ====== =============
RECEIPTS:
2. CASH SALES -- -- -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- -- -- --
4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- -- -- --
6. OTHER (attach list) 6,595 -- -- -- -- -- 6,595
------------- ------ ------ ------ ------ ------ -------------
TOTAL RECEIPTS 6,595 -- -- -- -- -- 6,595
------------- ------ ------ ------ ------ ------ -------------
(Withdrawal) Contribution by Individual Debtor
MFR-2* N/A N/A N/A N/A N/A N/A N/A
============= ====== ====== ====== ====== ====== =============
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- --
10. SECURED/RENTAL/LEASES -- -- -- -- -- -- --
11. UTILITIES -- -- -- -- -- -- --
12. INSURANCE -- -- -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- -- -- --
15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- --
18. OTHER (attach list) -- -- -- -- -- -- --
------------- ------ ------ ------ ------ ------ -------------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- -- -- --
============= ====== ====== ====== ====== ====== =============
19. PROFESSIONAL FEES -- -- -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- --
------------- ------ ------ ------ ------ ------ -------------
TOTAL DISBURSEMENTS -- -- -- -- -- -- --
============= ====== ====== ====== ====== ====== =============
22. NET CASH FLOW 6,595 -- -- -- -- -- 6,595
23. CASH - END OF MONTH (MOR-2) 1,368,676 -- -- -- -- -- 1,368,676
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
13
CASE NAME: STERLING CHEMICALS HOLDINGS, INC.
CASH RECEIPTS AND Chase Chase Total
DISBURSEMENTS 00100547125 00100535021 Debtor
----------------- ----------- ----------- ----------
1. CASH-BEGINNING OF MONTH -- 1,362,081 1,362,081
=========== =========== ==========
RECEIPTS:
2. CASH SALES -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- --
4. LOANS & ADVANCES (attach list) -- -- --
5. SALE OF ASSETS -- -- --
6. OTHER (attach list) -- 6,595 6,595
----------- ----------- ----------
TOTAL RECEIPTS -- 6,595 6,595
----------- ----------- ----------
(Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A
=========== =========== ==========
DISBURSEMENTS:
7. NET PAYROLL -- -- --
8. PAYROLL TAXES PAID -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- --
10. SECURED/RENTAL/LEASES -- -- --
11. UTILITIES -- -- --
12. INSURANCE -- -- --
13. INVENTORY PURCHASES -- -- --
14. VEHICLE EXPENSES -- -- --
15. TRAVEL & ENTERTAINMENT -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- --
17. ADMINISTRATIVE & SELLING -- -- --
18. OTHER (attach list) -- -- --
----------- ----------- ----------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- --
=========== =========== ==========
19. PROFESSIONAL FEES -- -- --
20. U.S. TRUSTEE FEES -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- --
----------- ----------- ----------
TOTAL DISBURSEMENTS -- -- --
=========== =========== ==========
22. NET CASH FLOW -- 6,595 6,595
23. CASH - END OF MONTH (MOR-2) -- 1,368,676 1,368,676
MOR-7 *Applies to Individual debtor's only.
14
CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11
OTHER CASH RECEIPTS AND FILING TO
DISBURSEMENTS: 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DATE
----------------------- ------------- ------ ------ ------ ------ ------ ---------
6. OTHER RECEIPTS:
Interest Income 6,595 -- -- -- -- -- 6,595
401(k) Plan Refund -- -- -- -- -- -- --
Cobra Insurance Payment -- -- -- -- -- -- --
Miscellaneous -- -- -- -- -- -- --
Emission Credits -- -- -- -- -- -- --
------------- ------ ------ ------ ------ ------ --------
TOTAL OTHER RECEIPTS 6,595 -- -- -- -- -- 6,595
============= ====== ====== ====== ====== ====== ========
18. OTHER DISBURSEMENTS:
Capital Expenditures -- -- -- -- -- -- --
Interest Payment -- -- -- -- -- -- --
Restricted Cash - Bond Funding -- -- -- -- -- -- --
Pre-petition checks voided in current period -- -- -- -- -- -- --
------------- ------ ------ ------ ------ ------ --------
TOTAL OTHER DISBURSEMENTS -- -- -- -- -- -- --
============= ====== ====== ====== ====== ====== ========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
15
CASE NAME: STERLING CHEMICALS HOLDINGS, INC.
OTHER CASH RECEIPTS AND Chase Chase Total
DISBURSEMENTS: 00100547125 00100535021 Debtor
----------------------- ----------- ----------- ------
6. OTHER RECEIPTS:
Interest Income -- 6,595 6,595
401(k) Plan Refund -- -- --
Cobra Insurance Payment -- -- --
Miscellaneous -- -- --
Emission Credits -- -- --
--
--
--
--
--
----------- ----------- --------
TOTAL OTHER RECEIPTS -- 6,595 6,595
=========== =========== ========
18. OTHER DISBURSEMENTS:
Capital Expenditures -- -- --
Interest Payment -- -- --
Restricted Cash - Bond Funding -- -- --
Pre-petition checks voided in current period -- -- --
----------- ----------- --------
TOTAL OTHER DISBURSEMENTS -- -- --
=========== =========== ========
MOR-7 ATTACHMENT
16
CASE NAME: Sterling Chemicals Holdings, Inc. CASE NUMBER: 01-37805-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
----------------
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
-------------- -------
BANK BALANCE $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
------- ------- ------- ------- ------- ------- ------- ------- -------
ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
======= ======= ======= ======= ======= ======= ======= ======= =======
BEGINNING CASH - PER BOOKS $ --
RECEIPTS --
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL) CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS --
------- ------- ------- ------- ------- ------- ------- ------- -------
ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
======= ======= ======= ======= ======= ======= ======= ======= =======
Note: Bank statements have not been received in time to complete this report.
Future reports will include reconciliations for the prior month.
MOR-8
17
CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11
PAYMENT TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO
INSIDERS: NAME/POSITION/COMP TYPE (2) 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
----------------------------------------- ------------- -------- -------- -------- -------- -------- ---------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
7. -- -- -- -- -- -- --
8. -- -- -- -- -- -- --
9. -- -- -- -- -- -- --
------------- -------- -------- -------- -------- -------- ---------
TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
============= ======== ======== ======== ======== ======== =========
PROFESSIONALS FILING TO
NAME/ORDER DATE 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
------------------------- ------------- -------- -------- -------- -------- -------- ---------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
------------- -------- -------- -------- -------- -------- ---------
TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
============= ======== ======== ======== ======== ======== =========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01.
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii)
OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES
AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING
AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE
VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS
FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE
DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO
THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH
INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE
REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS
THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON
BEHALF OF ITS EMPLOYEES.
(3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE,
ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE
#01-37806-H4-11.
MOR-9
EX-99.2
4
h90773ex99-2.txt
MONTHLY OPERATING REPORT FOR STERLING CHEM INC
1
EXHIBIT 99.2
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: STERLING CHEMICALS, INC. PETITION DATE: 07/16/01
CASE NUMBER: 01-37806-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2001
MONTH 7/16/01-8/31/01
--------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 36,458,061 $ -- $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (5,663,895) $ -- $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $ (12,537,900) $ -- $ -- $ -- $ -- $ --
PAYMENTS TO INSIDERS (MOR-9) $ 173,179 $ -- $ -- $ -- $ -- $ --
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
TOTAL DISBURSEMENTS (MOR-7) $ 98,519,611 $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy
Court and a COPY MUST BE SENT to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
See attachment 2 DATE
-----------------------------
CASUALTY YES (x) NO ( ) 08 - 01 - 02
LIABILITY YES (x) NO ( ) 07 - 01 - 02
VEHICLE YES (x) NO ( ) 07 - 01 - 02
WORKER'S YES (x) NO ( ) 07 - 01 - 02
OTHER YES (x) NO ( ) various
ATTORNEY NAME: Jeff Spiers
FIRM: Andrews & Kurth LLP
ADDRESS: 600 Travis
ADDRESS: Suite 4200
CITY, STATE ZIP: Houston, TX 77002
TELEPHONE: 713-220-4103
Are all accounts receivable being collected within terms? NO
Are all post-petition liabilities, including taxes, being paid with terms? YES
Have any pre-petition liabilities been paid? YES If so, describe
See Attachment 3
--------------------------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES
Were any assets disposed of outside the normal course of business? NO
If so, describe ----------------------------------------------------
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization?
A Plan of Reorganization is currently being developed.
--------------------------------------------------------------------------------
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED /s/ PAUL VANDERHOVEN
---------------------------------------------------
(ORIGINAL SIGNATURE)
TITLE VP Finance, CFO
---------------------------------------------------
MOR-1
2
Page 1 of 3
9/14/01
SUMMARY OF COVERAGES
FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 7/1/02 Total annual
Liability. Zurich US remuneration
Ded. $250,000 per accident.
2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/02 Number of vehicles
Ded. $25,000 per occurrence. Zurich Amer. owned and leased
3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/02 Annual revenues and
Excess to $1 Million SIR aggregate. Excess $1,000,000 GL remuneration
$2,000,000 AL.
4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 7/1/02 Included
aggregate. (Reinsured
through AIG.)
5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/02 Flat charge - based
aggregate. on exposures and
risk potential
6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 7/1/02 Flat charge - based
aggregate. Lore on exposures and
risk potential
7 Excess Liability $50,000,000 Zurich 1 year 7/1/02 Flat charge
8 Excess Liability $50,000,000 AIG 1 year 7/1/02 Flat Charge
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
1 Workers Compensation $195,653 - Audit at (AFCO)
expiration. Plus all losses within
deductible. Paid through 10/1/01.
2 Automobile Liability $92,955 (AFCO) Paid through 10/1/01.
3 Excess Liability $451,090 Annual - Half on 7/1/01;
Excess to $1 Million SIR 1/2 on 1/1/02. Paid through 1/1/02.
4 Excess Liability Included - Paid through 1/1/02.
5 Excess Liability $295,000 - Paid through expiration.
6 Excess Liability $241,886 - Paid through expiration.
7 Excess Liability $109,210 - Paid through expiration.
8 Excess Liability $80,938 - Paid through expiration.
3
Page 2 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
9 Excess Liability $50,000,000 Starr Excess 1 year 7/1/02 Flat Charge
10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/02 Based on volume
Operators Liability and Ded. $25,000 per occurrence Co. thru Marsh throughput and no.
Charterer's Legal $100,000 pollution per London chartered vessels.
Liability occurrence.
11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 7/1/02 Volume thru put &
P&L Brockbank & vessels docked.
Liberty Und.
12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/02 Flat
Brockbank & N.Y.
Marine Gen. Ins.
13 Property Damage, $ Total insured values combined Munich Re: et. al. 1 year 8/1/02 Property Values - PD
Business Interruption all-risk. Sublimits: Flood - Income values - BI
and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection
mil., $10 mil extra expense. available; many
Ded.: Petrochem $1,000,000 PD, other factors.
10 day - BI. Pulp & Fibers - $1
mil. PD/BI.
14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/02 Various
Liability policy year. Ded. $1,000,000 Indemnity
Corp. Reimb.
15 Excess Directors & $10,000,000 excess of Primary D&O Hartford 1 year 8/21/02 Various
Officers Liability
16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/02 Various
Liability Co.
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
9 Excess Liability $62,500 - Paid through expiration.
10 Marine Terminal $27,000 (AFCO) Min. premium & deposit.
Operators Liability and Paid through 10/1/01.
Charterer's Legal
Liability
11 Excess Marine Liability $57,375 - Paid through 10/1/01.
12 Excess Marine Liability $21,250 - Paid through 10/1/01.
13 Property Damage, Annual - Financed through AFCO.
Business Interruption $4.0M (est.) Paid through 10/1/01.
and Boiler & Machinery
14 Directors & Officers $316,000 (15 mos.) Paid through expiration.
Liability
15 Excess Directors & $223,700 (15 mos.) Paid through expiration.
Officers Liability
16 Directors & Officers $115,000 (15 mos.) Paid through expiration.
Liability
4
Page 3 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/01 Various
Depositor's Forgery Agreement. Ded. $25,000. Chubb
18 Hull & Machinery and Barge Hull Value Zurich-American 1 year 7/1/02 Hull & Machinery
Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values
Ded. $5,000 per loss.
$1,000,000 P&I
19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/02 Hull gross
Section B - $5,000,000 Insurance registered tonnage
CERCLA - $5,000,000 Syndicate
20 Marine and Railroad Cargo $12,000,000 any one vessel Mutual Marine 1 year Continuing Declared shipment
$1,000,000 any one barge values
$1,000,000 any one rail ship.
$100,000 any one truck
21 Office Contents $1,000,000 Phoenix Assur. 1 year 10/1/01 Limit
22 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
23 Fiduciary $10,000,000 National Union 1 year 8/21/02 Various
Ded. $250,000 per occurrence
24 Environmental $4,000,000 per loss 1 year 1/15/02 Loss Potential
Impairment Liability $8,000,000 aggregate ECS
(Petrochem & Fibers) (Indian Harbor)
25 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated
Bonds - Petrochem Indemnity Closure/Post Closure
Costs
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
17 Employee Dishonesty & $20,000 - Paid through 10/1/01.
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO) Paid through 10/1/01.
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO) Paid through 10/1/01.
20 Marine and Railroad Cargo $40,000 Annual Approx. Paid through
10/1/01.
21 Office Contents $4,500 - Paid through expiration.
22 Duty Drawback Bond $2,875 - Paid through 11/17/01.
23 Fiduciary $22,000 - Financed through Imperial.
Renewal binder issued. Processing
annual payment.
24 Environmental $106,200 - Financed through AFCO. Paid
Impairment Liability through 1/15/02.
(Petrochem & Fibers)
25 Closure/Post Closure $40,610 Paid through 1/1/02.
Bonds - Petrochem
ANNUAL TOTAL: $3,459,260 *
*Total fluctuates due to cargo premiums dependence upon volume of CIF
export shipments and annual audits of Worker's Compensation and Marine Terminal
policies.
5
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING PULP CHEMICALS, INC. CASE #01-37812-H4-11
Norfolk Southern Railway $ 62,827.78 Shippers
CSX Transportation $ 8,882.00 Shippers
Albany Scale Co. $ 4,096.75 Critical Vendor
Davidson Transport $ 5,797.49 Shippers
----------------
TOTAL $ 81,604.02
================
STERLING PULP US, INC. CASE #01-37811-H4-11
Canada Customs & Revenue Agency $ 1,840.45
================
STERLING FIBERS, INC. CASE #01-37808-H4-11
Crocker Technical Papers $ 77,244.52 Critical Vendor
Direct Line Commodities $ 18,530.10 Critical Vendor
Celedon Trucking Services $ 20,986.49 Shippers
Mini Fibers, Inc. $ 127,665.67 Critical Vendor
DeRijke $ 12,129.02
Engineered Fibers Tech (EFT) $ 14,101.44 Critical Vendor
CSX Transportation $ 14,411.88 Shippers
Shaskikumar Daftary $ 238.97 Independent contractor
Charlie Hummel $ 2,160.00 Independent contractor
Ceridian Employer Services $ 246.67 Payroll/Benefit Admin payroll service provider
A Agrawal $ 2,522.32 Payroll/Benefit Admin (expense reimbursement)
H Chever $ 521.80 Payroll/Benefit Admin (expense reimbursement)
NDCunningham $ 390.00 Shippers
Affiliated Brokers $ 97.04 Shippers
J Hagerott $ 1,757.02 Payroll/Benefit Admin (expense reimbursement)
B Montz $ 752.79 Payroll/Benefit Admin (expense reimbursement)
----------------
TOTAL $ 293,755.73
================
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
Aubrey Cannon $ 325.58 Payroll/Benefit Admin (expense reimbursement)
Charles Cannon $ 16.38 Payroll/Benefit Admin (expense reimbursement)
Karol Cripps $ 45.00 Payroll/Benefit Admin (expense reimbursement)
Greg Escamilla $ 80.25 Payroll/Benefit Admin (expense reimbursement)
Gene Kenyon $ 1,327.42 Payroll/Benefit Admin (expense reimbursement)
Dennis Kos $ 324.78 Payroll/Benefit Admin (expense reimbursement)
Wes Noel $ 62.10 Payroll/Benefit Admin (expense reimbursement)
Jack Pollock $ 45.72 Payroll/Benefit Admin (expense reimbursement)
----------------
Total Employee Exp.
Reimbursements $ 2,227.23
----------------
Blue Cross & Blue Shield of
Florida $ 170,716.53 payroll/benefit admin
Crawford & Company $ 1,819.85 Workers Comp
AFCO $ 10,220.80 Insurance Coverage
Bayport Occupational Med $ 11,812.00 Independent Contractor
BNSF Railroad $ 157,944.95 Shippers
Ceridian $ 1,277.29 payroll/benefit admin
Federal Express $ 1,502.71 Shippers
Imperial Premium Finance $ 10,584.23 Insurance Coverage
Jeil Marine $ 26,629.16 Shippers
Prescription Solutions $ 178,558.97 payroll/benefit admin
Union Pacific Railroad $ 48,700.00 Shippers
Woolim Shipping $ 68,676.82 Shippers
----------------
Total Vendor Payments $ 688,443.31
----------------
CIT Revolving Credit Facility $ 95,279,975.09
----------------
TOTAL $ 95,970,645.63
================
----------------
TOTAL DEBTOR PREFILE LIAB. PAID $ 96,347,845.83
----------------
SUMMARY
CIT Revolving Credit Facility $ 95,279,975.09
Critical Vendors $ 241,638.48
Shippers $ 416,846.32
Other $ 409,385.94
----------------
TOTAL $ 96,347,845.83
================
6
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED JULY 16, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING CANADA,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,362 $ 9,138 $ (1,208) $ 271
Trade accounts receivable, net - 43,168 327 3,662
Other Receivables - 1,268 - 4,242
Due from affiliates - 21,298 9,115 20,231
Inventories - 30,554 - -
Prepaid expenses 12 1,390 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,374 106,816 8,234 28,406
Property, plant and equipment, net - 131,928 3,482 -
Deferred income taxes - - - -
Investments-Third Party - 6,262 - -
Investments in Subs 35,060 95,073 - 297,161
Other assets 7,354 26,496 4,762 14,198
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 67,152
Secured Debt Accrued Interest * - 14,176 - 4,201
Revolver - 90,018 - -
Unsecured debt 192,879 297,064 1,144 270,594
Other / Intercompany - 201,020 - 5,016
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - -
Less: Unearned compensation - (458) - -
Redeemable preferred stock 26,541 (15,448) - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 48
Additional paid-in capital (367,555) (229,904) - 83,348
Retained earnings 191,923 (215,396) 15,333 (90,594)
Pension adjustment - (134) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(175,632) (445,362) 15,334 (7,198)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,632) (447,899) 15,334 (7,198)
TOTAL LIABILITIES AND EQUITY $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING PULP STERLING PULP STERLING FIBERS STERLING CHEMICALS
CHEMICALS US, INC. CHEMICALS, INC. INC. INT'L, INC.
ASSETS 01-37811-H4-11 01-37812-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 309 $ 714 $ -
Trade accounts receivable, net 1,035 4,546 4,639 -
Other Receivables - - 37 2,971
Due from affiliates 156 3,077 - -
Inventories 339 1,725 10,983 -
Prepaid expenses - - - (283)
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,530 9,657 16,373 2,688
Property, plant and equipment, net - 45,184 6,407 -
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs 3,199 - - -
Other assets - - 1,828 2,811
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - - 57,221 3,652
Secured Debt Accrued Interest * - - 3,580 228
Revolver - - - -
Unsecured debt 236 62,551 62,331 840
Other / Intercompany - - 14,125 -
Deferred income taxes - -
Common stock held by new ESOP - - 35 -
Less: Unearned compensation - - 458 -
Redeemable preferred stock - - 15,448 -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - - - -
Additional paid-in capital (5,370) 3,199 9,676 -
Retained earnings (877) (10,909) (138,266) 779
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
4,493 (7,710) (128,590) 779
Treasury stock at cost
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 4,493 (7,710) (128,590) 779
TOTAL LIABILITIES AND EQUITY $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 10,586
Trade accounts receivable, net - 57,377
Other Receivables (2,971) 5,547
Due from affiliates (50,909) 2,968
Inventories - 43,601
Prepaid expenses - 1,119
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (53,880) 121,198
Property, plant and equipment, net - 187,001
Deferred income taxes - -
Investments-Third Party - 6,262
Investments in Subs (398,721) 31,772
Other assets (1) 57,448
----------------------------------
TOTAL ASSETS $(452,602) $ 403,681
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (3,808) 18,377
Revolver - 90,018
Unsecured debt (129,602) 758,037
Other / Intercompany (201,020) 19,141
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 26,541
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (57,298) (553,164)
Retained earnings - (248,007)
Pension adjustment - (134)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(57,299) (801,185)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (57,299) (803,722)
TOTAL LIABILITIES AND EQUITY $(452,602) $ 403,681
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
7
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED AUGUST 31, 2001
(IN THOUSANDS)(UNAUDITED)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS US,
HOLDINGS INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,369 $ 2,157 $ -- $ 508 $ --
Trade accounts receivable, net -- 40,055 95 2,445 1,204
Other Receivables -- 3,307 -- 4,260 --
Due from affiliates -- 18,867 11,642 43,376 785
Inventories -- 26,875 -- -- 253
Prepaid expenses 35 2,390 -- -- --
Deferred income tax benefit -- -- -- -- --
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,404 93,651 11,737 50,589 2,242
Property, plant and equipment, net -- 129,048 3,389 -- --
Deferred income taxes -- -- -- -- --
Investments-Third Party -- 6,262 -- -- --
Investments in Subs 35,060 95,073 -- 297,161 3,199
Other assets 7,258 20,622 4,339 7,848 --
----------------------------------------------------------------------------------
TOTAL ASSETS $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2 95,939 2,240 20,216 780
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 67,152 --
Secured Debt Accrued Interest * -- 17,701 -- 5,240 --
Unsecured debt 192,878 277,993 1,351 265,001 231
Other / Intercompany -- 201,020 -- 4,904 --
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 254 -- -- --
Less: Unearned compensation -- (458) -- -- --
Redeemable preferred stock 26,541 (15,203) -- -- --
STOCKHOLDERS' EQUITY: --
Common stock, $.01 par value -- 75 1 48 --
Additional paid-in capital (367,555) (229,904) -- 83,348 5,370
Retained earnings-Filing Date 191,923 (215,396) 15,333 (90,594) (877)
Retained earnings-Post Filing Date (67) (12,538) 540 283 (63)
Pension adjustment -- (135) -- -- --
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- (3) -- -- --
---------------------------------------------------------------------------------
(175,699) (457,901) 15,874 (6,915) 4,430
Treasury stock at cost -- (2,537) -- -- --
---------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,699) (460,438) 15,874 (6,915) 4,430
TOTAL LIABILITIES AND EQUITY $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
=================================================================================
$ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ (79) $ 361 $ -- $ -- $ 4,316
Trade accounts receivable, net 4,177 4,724 -- -- 52,700
Other Receivables 37 -- -- 7,604
Due from affiliates 6,855 2,811 3,094 (83,255) 4,175
Inventories 1,693 8,863 -- -- 37,684
Prepaid expenses -- (283) -- 2,142
Deferred income tax benefit -- -- -- -- --
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,646 16,796 2,811 (83,255) 108,621
Property, plant and equipment, net 44,633 6,352 -- -- 183,422
Deferred income taxes -- -- -- -- --
Investments-Third Party -- -- -- -- 6,262
Investments in Subs -- -- -- (398,721) 31,772
Other assets -- 1,452 2,777 (1) 44,295
--------------------------------------------------------------------------
TOTAL ASSETS $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2,620 3,433 13 (27,514) 97,729
Pre-Petition liabilities:
Notes Payable - Secured * -- 57,221 3,652 (60,873) 295,000
Secured Debt Accrued Interest * -- 4,465 285 (4,750) 22,941
Unsecured debt 62,478 73,333 840 (130,521) 743,584
Other / Intercompany -- -- (201,020) 4,904
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 35 -- -- 289
Less: Unearned compensation -- 458 -- -- --
Redeemable preferred stock -- 15,448 -- -- 26,786
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- -- -- (1) 123
Additional paid-in capital 3,199 9,676 -- (57,298) (553,164)
Retained earnings-Filing Date (10,909) (138,266) 779 -- (248,007)
Retained earnings-Post Filing Date (109) (1,203) 19 -- (13,138)
Pension adjustment -- -- -- -- (135)
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- -- -- -- (3)
--------------------------------------------------------------------------
(7,819) (129,793) 798 (57,299) (814,324)
Treasury stock at cost -- -- -- -- (2,537)
--------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (7,819) (129,793) 798 (57,299) (816,861)
TOTAL LIABILITIES AND EQUITY $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
$ -- $ -- $ -- $ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage
is pushed down to the subsidiaries.
MOR 2 - 3
8
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
FOR THE PERIOD ENDING AUGUST 31, 2001
(IN THOUSANDS)
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS, US, CHEMICALS,
HOLDINGS INC. INC. ENERGY, INC. INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 28,667 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- 48 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- 925 -- -- -- 40
TOTAL TAXES PAYABLE $ -- $ 973 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION -- 41,472 -- -- -- --
ACCRUED INTEREST PAYABLE -- 234 -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- 2,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 22,593 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 95,939 $ 2,240 $ 20,216 $ 780 $ 2,620
====================================================================================================================================
-------------------------------------------------------------
STERLING STERLING
FIBERS CHEMICALS
INC. INT'L, INC. DEBTORS
01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 13 $ (8,105) $ 28,458
ROYALTY AND REVENUE PAYABLE -- -- -- --
NOTES PAYABLE -- -- (19,409) --
TAX PAYABLE: -- -- -- --
Federal Payroll Taxes 5 -- -- 5
State Payroll & Sales 13 -- -- 61
Ad Valorem Taxes -- -- -- --
Other Taxes (Property/franchise) 389 -- -- 1,354
TOTAL TAXES PAYABLE $ 407 $ -- $ -- $ 1,420
SECURED DEBT POST-PETITION -- -- -- 41,472
ACCRUED INTEREST PAYABLE -- -- -- 234
*ACCRUED PROFESSIONAL FEES: -- -- -- 2,000
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- 24,145
2. Lease Operating Expenses/Capital -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 13 $ (27,514) $ 97,729
=====================================================================================================
*Payment Requires Court Approval
MOR-4
9
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 8/31/01
-----------------------
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- -------- ----------- --------- ----------- ----------- -------------
0-30 $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
31-60 -- -- -- -- -- --
61-90 -- -- -- -- -- --
91 + -- -- -- -- -- --
-------- --------- --------- ----------- ----------- -------------
TOTAL $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
-----
0-30 $ 42,120 $ 42,120 $ -- $ -- $ -- $ --
31-60 4,151 4,151 -- -- --
61-90 1,154 1,154 -- -- --
91 + 5,274 5,274 -- -- --
-------- ----------- --------- ----------- ----------- -------------
TOTAL $ 52,699 $ 52,699 $ -- $ -- $ -- $ --
======== =========== ========= =========== =========== =============
(1) MOR-5 is presented only on a consolidated debtor basis.
(2) Days aging from due date.
(3) Days aging from invoice due date.
MOR-5
10
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS) CASE NUMBER: See Each Company Below
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STATEMENT OF INCOME (LOSS)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 36,458,061 $ 327,939 $ 1,688,935 $ 595,406
TOTAL COST OF REVENUES -- 38,535,886 327,939 29,600 624,624
GROSS PROFIT $ -- $ (2,077,825) $ -- $ 1,659,335 $ (29,218)
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,772 $ 858,049 $ -- $ 406,973 $ 32,298
Insiders Compensation -- 173,179 -- -- --
Professional Fees -- 2,015,000 -- -- --
Other (attach list) -- 539,842 (539,842) -- --
TOTAL OPERATING EXPENSE $ 1,772 $ 3,586,070 $ (539,842) $ 406,973 $ 32,298
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (1,772) $ (5,663,895) $ 539,842 $ 1,252,362 $ (61,516)
INTEREST EXPENSE (includes amort of debt fees) (6,595) 3,553,595 -- 250,944 --
DEPRECIATION 71,765 3,293,410 -- 718,977 --
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 65,170 $ 6,847,005 $ -- $ 969,921 $ --
=================================================================================================================================
NET INCOME BEFORE TAXES $ (66,942) $ (12,510,900) $ 539,842 $ 282,441 $ (61,516)
INCOME TAXES -- 27,000 -- -- --
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (66,942) $ (12,537,900) $ 539,842 $ 282,441 $ (61,516)
=================================================================================================================================
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 4,044,462 $ 4,472,168 $ 123,655 $ (123,655) $ 47,586,971
TOTAL COST OF REVENUES 1,909,929 4,472,502 -- (123,655) 45,776,825
GROSS PROFIT $ 2,134,533 $ (334) $ 123,655 $ -- $ 1,810,146
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 2,325,050
Insiders Compensation -- -- -- -- 173,179
Professional Fees -- -- -- -- 2,015,000
Other (attach list) -- -- -- -- --
-- --
TOTAL OPERATING EXPENSE $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 4,513,229
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 503,539 $ (209,403) $ 110,646 827,114 (2,703,083)
INTEREST EXPENSE (includes amort of debt fees) -- 921,502 56,498 827,114 5,603,058
DEPRECIATION 612,861 71,658 34,500 -- 4,803,171
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 612,861 $ 993,160 $ 90,998 $ 827,114 $ 10,406,229
==============================================================================================================================
NET INCOME BEFORE TAXES $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,109,312)
INCOME TAXES -- -- -- -- 27,000
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,136,312)
==============================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or frequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
11
CASE NUMBER: SEE EACH COMPANY BELOW
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ 539,842 $ (539,842) $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ 539,842 $ (539,842) $ -- $ --
=================================================================================================================================
STERLING PULP STERLING STERLING
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC. DEBTORS
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ -- $ -- $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
MOR-6 ATTACHMENT
12
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H4-11
CASH RECEIPTS AND FILING TO
DISBURSEMENTS 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DATE
----------------- ------------- -------- -------- -------- -------- -------- -----------
1. CASH-BEGINNING OF MONTH 9,346,546 -- -- -- -- -- 9,346,546
============= ======== ======== ======== ======== ======== ===========
RECEIPTS:
2. CASH SALES -- -- -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 40,926,868 -- -- -- -- -- 40,926,868
4. LOANS & ADVANCES - CIT REVOLVER 32,400,000 -- -- -- -- -- 32,400,000
5. SALE OF ASSETS -- -- -- -- -- -- --
6. OTHER (attach list) 17,276,763 -- -- -- -- -- 17,276,763
------------- -------- -------- -------- -------- -------- -----------
TOTAL RECEIPTS 90,603,630 -- -- -- -- -- 90,603,630
------------- -------- -------- -------- -------- -------- -----------
(Withdrawal) Contribution by Individual
Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A
=========== ======== ======== ======== ======== ======== ===========
DISBURSEMENTS:
7. NET PAYROLL 2,731,080 -- -- -- -- -- 2,731,080
8. PAYROLL TAXES PAID 1,296,961 -- -- -- -- -- 1,296,961
9. SALES, USE & OTHER TAXES PAID 32,514 -- -- -- -- -- 32,514
10. SECURED/RENTAL/LEASES 150,961 -- -- -- -- -- 150,961
11. UTILITIES 2,879,979 -- -- -- -- -- 2,879,979
12. INSURANCE 1,469,518 -- -- -- -- -- 1,469,518
13. INVENTORY PURCHASES 11,912,436 -- -- -- -- -- 11,912,436
14. VEHICLE EXPENSES -- -- -- -- -- -- --
15. TRAVEL & ENTERTAINMENT 39,341 -- -- -- -- -- 39,341
16. REPAIRS, MAINTENANCE & SUPPLIES 1,279,095 -- -- -- -- -- 1,279,095
17. ADMINISTRATIVE & SELLING 2,731,486 -- -- -- -- -- 2,731,486
18. OTHER (attach list) 73,996,239 -- -- -- -- -- 73,996,239
------------- -------- -------- -------- -------- -------- -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 98,519,611 -- -- -- -- -- 98,519,611
============= ======== ======== ======== ======== ======== ===========
19. PROFESSIONAL FEES -- -- -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES
(attach list) -- -- -- -- -- -- --
------------- -------- -------- -------- -------- -------- -----------
TOTAL DISBURSEMENTS 98,519,611 -- -- -- -- -- 98,519,611
============= ======== ======== ======== ======== ======== ===========
22. NET CASH FLOW (7,915,980) -- -- -- -- -- (7,915,980)
23. CASH - END OF MONTH (MOR-2)(2) 1,430,565 -- -- -- -- -- 1,430,565
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
(2) RECONCILIATION TO THE G/L BALANCE:
MOR-7 Balance 1,430,565.35
G/L acct 10123 - not a valid account, bal s/b zero 794.70
G/L acct 10131 - closed prior to filing, remaining
book bal s/b adjusted to zero 4,029.99
G/L acct 10199 - book overdraft reclass to a/p
for outstanding checks 721,434.36
-------------
Balance Sheet Cash Amount 2,156,824.40
MOR-7 *Applies to Individual debtor's only.
13
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H4-11
CASH RECEIPTS AND Chase Chase Chase Chase Chase Chase
DISBURSEMENTS 00103275427 00101824317 00103316882 103405743 6301810002508 6301810036508
------------- ----------- ----------- ----------- --------- ------------- -------------
1. CASH-BEGINNING OF MONTH 7,590 191,897 133,791 1,125,530 (229) --
=========== =========== =========== ========== ============= ============
RECEIPTS:
2. CASH SALES -- -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- 33,546,460 -- -- -- --
4. LOANS & ADVANCES - CIT REVOLVER -- -- 32,400,000 -- -- --
5. SALE OF ASSETS -- -- -- -- -- --
6. OTHER (attach list) -- -- 7,007,590 3,950,000 4,602,251 681,060
----------- ----------- ----------- ---------- ------------- -------------
TOTAL RECEIPTS -- 33,546,460 39,407,590 3,950,000 4,602,251 681,060
----------- ----------- ----------- ---------- ------------- -------------
(Withdrawal) Contribution by
Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A
=========== =========== =========== ========== ============= ============
DISBURSEMENTS:
7. NET PAYROLL -- -- -- 2,731,080 -- --
8. PAYROLL TAXES PAID -- -- -- 1,296,961 -- --
9. SALES, USE & OTHER TAXES PAID -- -- 32,514 -- -- --
10. SECURED/RENTAL/LEASES -- -- -- -- 150,961 --
11. UTILITIES -- -- 2,879,979 -- -- --
12. INSURANCE -- -- 18,270 -- 1,451,248 --
13. INVENTORY PURCHASES -- -- 11,912,436 -- -- --
14. VEHICLE EXPENSES -- -- -- -- -- --
15. TRAVEL & ENTERTAINMENT -- -- -- -- 39,341 --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- 1,279,095 --
17. ADMINISTRATIVE & SELLING -- -- 733,406 -- 1,968,080 --
18. OTHER (attach list) 7,590 33,484,452 23,721,920 -- 434,732 681,060
----------- ----------- ----------- ---------- ------------- -------------
TOTAL DISBURSEMENTS FROM OPERATIONS 7,590 33,484,452 39,298,526 4,028,041 5,323,457 681,060
=========== =========== =========== ========== ============= ============
19. PROFESSIONAL FEES -- -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES
(attach list) -- -- -- -- -- --
----------- ----------- ----------- ---------- ------------- -------------
TOTAL DISBURSEMENTS 7,590 33,484,452 39,298,526 4,028,041 5,323,457 681,060
=========== =========== =========== ========== ============= ============
22. NET CASH FLOW (7,590) 62,008 109,064 (78,041) (721,206) --
23. CASH - END OF MONTH (MOR-2) -- 253,905 242,855 1,047,489 (721,434) --
CASH RECEIPTS AND Chase Wells Fargo Bank One Total
DISBURSEMENTS 6301810028508 4496870106 5561833 Debtor
------------- ------------- ----------- --------- ------------
1. CASH-BEGINNING OF MONTH -- 7,499,015 388,951 9,346,546
RECEIPTS:
2. CASH SALES -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- 7,380,408 40,926,868
4. LOANS & ADVANCES - CIT REVOLVER -- -- -- 32,400,000
5. SALE OF ASSETS -- -- -- --
6. OTHER (attach list) 12,030 -- 1,023,832 17,276,763
------------- ----------- --------- ------------
TOTAL RECEIPTS 12,030 -- 8,404,240 90,603,630
------------- ----------- --------- ------------
(Withdrawal) Contribution by
Individual Debtor MFR-2* N/A N/A N/A N/A
============= =========== ========= ============
DISBURSEMENTS:
7. NET PAYROLL -- -- -- 2,731,080
8. PAYROLL TAXES PAID -- -- -- 1,296,961
9. SALES, USE & OTHER TAXES PAID -- -- -- 32,514
10. SECURED/RENTAL/LEASES -- -- -- 150,961
11. UTILITIES -- -- -- 2,879,979
12. INSURANCE -- -- -- 1,469,518
13. INVENTORY PURCHASES -- -- -- 11,912,436
14. VEHICLE EXPENSES -- -- -- --
15. TRAVEL & ENTERTAINMENT -- -- -- 39,341
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- 1,279,095
17. ADMINISTRATIVE & SELLING -- -- -- 2,701,486
18. OTHER (attach list) 12,030 7,000,000 8,684,456 74,026,239
------------- ----------- --------- ------------
TOTAL DISBURSEMENTS FROM OPERATIONS 12,030 7,000,000 8,684,456 98,519,611
============= =========== ========= ============
19. PROFESSIONAL FEES -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- --
21. OTHER REORGANIZATION EXPENSES
(attach list) -- -- -- --
------------- ----------- --------- ------------
TOTAL DISBURSEMENTS 12,030 7,000,000 8,684,456 98,519,611
============= =========== ========= ============
22. NET CASH FLOW -- (7,000,000) (280,216) (7,915,980)
23. CASH - END OF MONTH (MOR-2) -- 499,015 108,735 1,430,565
MOR-7 *Applies to Individual debtor's only.
14
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H4-11
OTHER CASH RECEIPTS AND FILING TO
DISBURSEMENTS: 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DATE
----------------------- ------------- -------- -------- -------- -------- -------- -------------
6. OTHER RECEIPTS:
Interest Income -- -- -- -- -- -- --
401(k) Plan Refund -- -- -- -- -- -- --
Cobra Insurance Payment -- -- -- -- -- -- --
Miscellaneous 323,832 -- -- -- -- -- 323,832
Emission Credits -- -- -- -- -- -- --
Account Transfers 16,952,931 -- -- -- -- -- 16,952,931
------------- -------- -------- -------- -------- -------- -------------
TOTAL OTHER RECEIPTS 17,276,763 -- -- -- -- -- 17,276,763
============= ======== ======== ======== ======== ======== =============
18. OTHER DISBURSEMENTS:
Capital Expenditures 157,217 -- -- -- -- -- 157,217
Interest Payment -- -- -- -- -- -- --
Employee Benefits 1,716,761 -- -- -- -- -- 1,716,761
Pre-petition checks voided in
current period (30,000) -- -- -- -- -- (30,000)
Account Transfers 16,952,931 -- -- -- -- -- 16,952,931
CIT Revolver Payments 51,857,690 -- -- -- -- -- 51,857,690
Intercompany Transfers 3,341,640 -- -- -- -- -- 3,341,640
--
------------- -------- -------- -------- -------- -------- -------------
TOTAL OTHER DISBURSEMENTS 73,996,239 -- -- -- -- -- 73,996,239
============= ======== ======== ======== ======== ======== =============
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
15
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H4-11
OTHER CASH RECEIPTS AND Chase Chase Chase Chase Chase
DISBURSEMENTS: 00103275427 00101824317 00103316882 103405743 6301810002508
-------------- ----------- ----------- ----------- --------- -------------
6. OTHER RECEIPTS:
Interest Income -- -- -- -- --
401(k) Plan Refund -- -- -- -- --
Cobra Insurance Payment -- -- -- -- --
Miscellaneous -- -- -- -- --
Emission Credits -- -- -- -- --
Account Transfers -- -- 7,007,590 3,950,000 4,602,251
--------- ------------- ------------- ---------- ----------
TOTAL OTHER RECEIPTS -- -- 7,007,590 3,950,000 4,602,251
========= ============= ============= ========== ==========
18. OTHER DISBURSEMENTS:
Capital Expenditures -- -- -- -- 157,217
Interest Payment -- -- -- -- --
Employee Benefits -- -- 746,157 -- 277,515
Pre-petition checks voided in
current period -- -- -- -- --
Account Transfers 7,590 -- 9,945,341 -- --
CIT Revolver Payments -- 33,484,452 9,688,782 -- --
Intercompany Transfers -- -- 3,341,640 -- --
--------- ------------- ------------- ---------- ----------
TOTAL OTHER DISBURSEMENTS 7,590.02 33,484,451.52 23,721,920.06 0.00 434,732.29
========= ============= ============= ========== ==========
OTHER CASH RECEIPTS AND Chase Chase Wells Fargo Bank One Total
DISBURSEMENTS: 6301810036508 6301810028508 4496870106 5561833 Debtor
-------------- ------------- ------------- -------------- ------------ -------------
6. OTHER RECEIPTS:
Interest Income -- -- -- -- --
401(k) Plan Refund -- -- -- -- --
Cobra Insurance Payment -- -- -- -- --
Miscellaneous -- -- -- 323,832 323,832
Emission Credits -- -- -- -- --
Account Transfers 681,060 12,030 -- 700,000 16,952,931
--
--
--
--
----------- ----------- ------------ ------------ ------------
TOTAL OTHER RECEIPTS 681,060 12,030 -- 1,023,832 17,276,763
=========== =========== ============ ============ ============
18. OTHER DISBURSEMENTS:
Capital Expenditures -- -- -- -- 157,217
Interest Payment -- -- -- -- --
Employee Benefits 681,060 12,030 -- -- 1,716,761
Pre-petition checks voided in
current period -- -- -- -- --
Account Transfers -- -- 7,000,000 -- 16,952,931
CIT Revolver Payments -- -- -- 8,684,456 51,857,690
Intercompany Transfers -- -- -- -- 3,341,640
----------- ----------- ------------ ------------ -------------
TOTAL OTHER DISBURSEMENTS 681,059.65 12,029.79 7,000,000.00 8,684,455.95 74,026,239.28
=========== =========== ============ ============ =============
MOR-7 ATTACHMENT
16
CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
---------------------------------
BANK NAME
ACCOUNT NUMBER
--------------
ACCOUNT TYPE TOTAL
-------------- -------
BANK BALANCE $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
------- ------- ------- ------- ------- ------- ------- ------- -------
ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
======= ======= ======= ======= ======= ======= ======= ======= =======
BEGINNING CASH - PER BOOKS $ --
RECEIPTS --
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL) CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS --
------- ------- ------- ------- ------- ------- ------- ------- -------
ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
======= ======= ======= ======= ======= ======= ======= ======= =======
Note: Bank statements have not been received in time to complete this report.
Future reports will include reconciliations for the prior month.
MOR-8
17
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H4-11
PAYMENT TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO
INSIDERS: NAME/POSITION/COMP TYPE (2) 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
------------------------------------------------- ------------- --------- --------- --------- --------- --------- ---------
1. Frank Diassi/Chairman of Board/Salary $ 46,875 $ -- $ -- $ -- $ -- $ -- $ 46,875
2. Frank Diassi/Chairman of Board/Expenses 521 -- -- -- -- -- 521
3. David Elkins/President/Salary 43,750 -- -- -- -- -- 43,750
4. David Elkins/President/Expenses 5,013 -- -- -- -- -- 5,013
5. Richard Crump/Exec VP Opers/Salary 37,500 -- -- -- -- -- 37,500
6. Richard Crump/Exec VP Opers/Expense 2,192 -- -- -- -- -- 2,192
7. Paul Vanderhoven/VP Finance & CFO/Salary 25,000 -- -- -- -- -- 25,000
8. Robert Roten/Former Pres & Board Member/SERP 2,328 -- -- -- -- -- 2,328
9. Robert Roten/Former Pres & Board
Member/Consulting fee 10,000 -- -- -- -- -- 10,000
------------- --------- --------- --------- --------- --------- ---------
TOTAL INSIDERS (MOR-1) $ 173,179 $ -- $ -- $ -- $ -- $ -- $ 173,179
============= ========= ========= ========= ========= ========= =========
PROFESSIONALS FILING TO
NAME/ORDER DATE 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
--------------------------------- ------------- --------- --------- --------- --------- --------- ---------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
------------- --------- --------- --------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
============= ========= ========= ========= ========= ========= =========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01.
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii)
OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES
AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING
AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE
VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS
FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE
DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO
THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH
INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE
REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS
THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON
BEHALF OF ITS EMPLOYEES.
MOR-9
EX-99.3
5
h90773ex99-3.txt
MONTHLY OPERATING REPORT FOR STERLING CHEM ENERGY
1
EXHIBIT 99.3
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: STERLING CHEMICALS ENERGY, INC. PETITION DATE: 07/16/01
CASE NUMBER: 01-37807-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2001
MONTH 7/16/01-8/31/01
--------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 327,939 $ -- $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 539,842 $ -- $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $ 539,842 $ -- $ -- $ -- $ -- $ --
PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
TOTAL DISBURSEMENTS (MOR-7) $1,045,517 $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy
Court and a COPY MUST BE SENT to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
See attachment 2 DATE
-------------------------------
CASUALTY YES (x) NO ( ) 08-01-02
LIABILITY YES (x) NO ( ) 07-01-02
VEHICLE YES (x) NO ( ) 07-01-02
WORKER'S YES (x) NO ( ) 07-01-02
OTHER YES (x) NO ( ) various
ATTORNEY NAME: Jeff Spiers
FIRM: Andrews & Kurth LLP
ADDRESS: 600 Travis
ADDRESS: Suite 4200
CITY, STATE ZIP: Houston, TX 77002
TELEPHONE: 713-220-4103
Are all accounts receivable being collected within terms? NO
Are all post-petition liabilities, including taxes, being paid with terms? YES
Have any pre-petition liabilities been paid? YES If so, describe
See Attachment 3
--------------------------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES
Were any assets disposed of outside the normal course of business? NO
If so, describe
----------------------------------------------------------------
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization?
A Plan of Reorganization is currently being developed.
--------------------------------------------------------------------------------
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED /s/ PAUL VANDERHOVEN
-----------------------------------------------
(ORIGINAL SIGNATURE)
TITLE VP Finance, CFO
-----------------------------------------------
MOR-1
2
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
PAID
COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH
------------------------------------------------------------------------------------------------------------------------------------
See Attachment 2
MOR-1 ATTACHMENT 2
3
Page 1 of 3
9/14/01
SUMMARY OF COVERAGES
FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 7/1/02 Total annual
Liability. Zurich US remuneration
Ded. $250,000 per accident.
2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/02 Number of vehicles
Ded. $25,000 per occurrence. Zurich Amer. owned and leased
3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/02 Annual revenues and
Excess to $1 Million SIR aggregate. Excess $1,000,000 GL remuneration
$2,000,000 AL.
4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 7/1/02 Included
aggregate. (Reinsured
through AIG.)
5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/02 Flat charge - based
aggregate. on exposures and
risk potential
6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 7/1/02 Flat charge - based
aggregate. Lore on exposures and
risk potential
7 Excess Liability $50,000,000 Zurich 1 year 7/1/02 Flat charge
8 Excess Liability $50,000,000 AIG 1 year 7/1/02 Flat Charge
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
1 Workers Compensation $195,653 - Audit at (AFCO)
expiration. Plus all losses within
deductible. Paid through 10/1/01.
2 Automobile Liability $92,955 (AFCO) Paid through 10/1/01
3 Excess Liability $451,090 Annual - Half on 7/1/01;
Excess to $1 Million SIR 1/2 on 1/1/02. Paid through 1/1/02.
4 Excess Liability Included - Paid through 1/1/02.
5 Excess Liability $295,000 - Paid through expiration.
6 Excess Liability $241,886 - Paid through expiration.
7 Excess Liability $109,210 - Paid through expiration.
8 Excess Liability $80,938 - Paid through expiration.
4
Page 2 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
9 Excess Liability $50,000,000 Starr Excess 1 year 7/1/02 Flat Charge
10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/02 Based on volume
Operators Liability and Ded. $25,000 per occurrence Co. thru Marsh throughput and no.
Charterer's Legal $100,000 pollution London chartered vessels.
Liability per occurrence.
11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 7/1/02 Volume thru put &
P&L Brockbank & vessels docked.
Liberty Und.
12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/02 Flat
Brockbank & N.Y.
Marine Gen. Ins.
13 Property Damage, $ Total insured values combined Munich Re: et. al. 1 year 8/1/02 Property Values - PD
Business Interruption all-risk. Sublimits: Flood - Income values - BI
and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection
mil., $10 mil extra expense. available; many
Ded.: Petrochem $1,000,000 PD, other factors.
10 day - BI. Pulp & Fibers - $1
mil. PD/BI.
14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/02 Various
Liability policy year. Ded. $1,000,000 Indemnity
Corp. Reimb.
15 Excess Directors & $10,000,000 excess of Primary D&O Hartford 1 year 8/21/02 Various
Officers Liability
16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/02 Various
Liability Co.
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
9 Excess Liability $62,500 - Paid through expiration.
10 Marine Terminal $27,000 (AFCO) Min. premium & deposit.
Operators Liability and Paid through 10/1/01.
Charterer's Legal
Liability
11 Excess Marine Liability $57,375 - Paid through 10/1/01.
12 Excess Marine Liability $21,250 - Paid through 10/1/01.
13 Property Damage, Annual - Financed through AFCO.
Business Interruption $4.0M (est.) Paid through 10/1/01.
and Boiler & Machinery
14 Directors & Officers $316,000 (15 mos.) Paid through
Liability expiration.
15 Excess Directors & $223,700 (15 mos.) Paid through
Officers Liability expiration.
16 Directors & Officers $115,000 (15 mos.) Paid through
Liability expiration.
5
Page 3 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/01 Various
Depositor's Forgery Agreement. Ded. $25,000. Chubb
18 Hull & Machinery and Barge Hull Value Zurich-American 1 year 7/1/02 Hull & Machinery
Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values
Ded. $5,000 per loss.
$1,000,000 P&I
19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/02 Hull gross
Section B - $5,000,000 Insurance Syndicate registered tonnage
CERCLA - $5,000,000
20 Marine and Railroad Cargo $12,000,000 any one vessel Mutual Marine 1 year Continuing Declared shipment
$1,000,000 any one barge values
$1,000,000 any one rail ship.
$100,000 any one truck
21 Office Contents $1,000,000 Phoenix Assur. 1 year 10/1/01 Limit
22 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
23 Fiduciary $10,000,000 National Union 1 year 8/21/02 Various
Ded. $250,000 per occurrence
24 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/02 Loss Potential
Liability (Petrochem & $8,000,000 aggregate (Indian Harbor)
Fibers)
25 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated
Bonds - Petrochem Indemnity Closure/Post Closure
Costs
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
17 Employee Dishonesty & $20,000 Paid through 10/1/01.
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO) Paid through 10/1/01.
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO) Paid through 10/1/01.
20 Marine and Railroad Cargo $40,000 Annual Approx. Paid through 10/1/01.
21 Office Contents $4,500 - Paid through expiration.
22 Duty Drawback Bond $2,875 - Paid through 11/17/01.
23 Fiduciary $22,000 - Financed through Imperial.
Renewal binder issued. Processing
annual payment.
24 Environmental Impairment $106,200 - Financed through AFCO.
Liability (Petrochem & Paid through 1/15/02.
Fibers)
25 Closure/Post Closure $40,610 Paid through 1/1/02.
Bonds - Petrochem
ANNUAL TOTAL: $3,459,260 *
* Total fluctuates due to cargo premiums dependence upon volume of CIF export
shipments and annual audits of Worker's Compensation and Marine Terminal
policies.
6
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
------ ------ -----
STERLING PULP CHEMICALS, INC. CASE #01-37812-H4-11
Norfolk Southern Railway $ 62,827.78 Shippers
CSX Transportation $ 8,882.00 Shippers
Albany Scale Co. $ 4,096.75 Critical Vendor
Davidson Transport $ 5,797.49 Shippers
--------------
TOTAL $ 81,604.02
==============
STERLING PULP US, INC. CASE #01-37811-H4-11
--------------
Canada Customs & Revenue Agency $ 1,840.45
==============
STERLING FIBERS, INC. CASE #01-37808-H4-11
Crocker Technical Papers $ 77,244.52 Critical Vendor
Direct Line Commodities $ 18,530.10 Critical Vendor
Celedon Trucking Services $ 20,986.49 Shippers
Mini Fibers, Inc. $ 127,665.67 Critical Vendor
DeRijke $ 12,129.02
Engineered Fibers Tech (EFT) $ 14,101.44 Critical Vendor
CSX Transportation $ 14,411.88 Shippers
Shaskikumar Daftary $ 238.97 Independent contractor
Charlie Hummel $ 2,160.00 Independent contractor
Ceridian Employer Services $ 246.67 Payroll/Benefit Admin payroll service provider
A Agrawal $ 2,522.32 Payroll/Benefit Admin (expense reimbursement)
H Chever $ 521.80 Payroll/Benefit Admin (expense reimbursement)
NDCunningham $ 390.00 Shippers
Affiliated Brokers $ 97.04 Shippers
J Hagerott $ 1,757.02 Payroll/Benefit Admin (expense reimbursement)
B Montz $ 752.79 Payroll/Benefit Admin (expense reimbursement)
--------------
TOTAL $ 293,755.73
==============
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
Aubrey Cannon $ 325.58 Payroll/Benefit Admin (expense reimbursement)
Charles Cannon $ 16.38 Payroll/Benefit Admin (expense reimbursement)
Karol Cripps $ 45.00 Payroll/Benefit Admin (expense reimbursement)
Greg Escamilla $ 80.25 Payroll/Benefit Admin (expense reimbursement)
Gene Kenyon $ 1,327.42 Payroll/Benefit Admin (expense reimbursement)
Dennis Kos $ 324.78 Payroll/Benefit Admin (expense reimbursement)
Wes Noel $ 62.10 Payroll/Benefit Admin (expense reimbursement)
Jack Pollock $ 45.72 Payroll/Benefit Admin (expense reimbursement)
--------------
Total Employee Exp. Reimbursements $ 2,227.23
--------------
Blue Cross & Blue Shield of Florida $ 170,716.53 payroll/benefit admin
Crawford & Company $ 1,819.85 Workers Comp
AFCO $ 10,220.80 Insurance Coverage
Bayport Occupational Med $ 11,812.00 Independent Contractor
BNSF Railroad $ 157,944.95 Shippers
Ceridian $ 1,277.29 payroll/benefit admin
Federal Express $ 1,502.71 Shippers
Imperial Premium Finance $ 10,584.23 Insurance Coverage
Jeil Marine $ 26,629.16 Shippers
Prescription Solutions $ 178,558.97 payroll/benefit admin
Union Pacific Railroad $ 48,700.00 Shippers
Woolim Shipping $ 68,676.82 Shippers
--------------
Total Vendor Payments $ 688,443.31
--------------
CIT Revolving Credit Facility $95,279,975.09
--------------
TOTAL $95,970,645.63
==============
--------------
TOTAL DEBTOR PREFILE LIAB. PAID $96,347,845.83
--------------
SUMMARY
CIT Revolving Credit Facility $95,279,975.09
Critical Vendors $ 241,638.48
Shippers $ 416,846.32
Other $ 409,385.94
--------------
TOTAL $96,347,845.83
==============
7
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED JULY 16, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING CANADA,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,362 $ 9,138 $ (1,208) $ 271
Trade accounts receivable, net - 43,168 327 3,662
Other Receivables - 1,268 - 4,242
Due from affiliates - 21,298 9,115 20,231
Inventories - 30,554 - -
Prepaid expenses 12 1,390 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,374 106,816 8,234 28,406
Property, plant and equipment, net - 131,928 3,482 -
Deferred income taxes - - - -
Investments-Third Party - 6,262 - -
Investments in Subs 35,060 95,073 - 297,161
Other assets 7,354 26,496 4,762 14,198
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 67,152
Secured Debt Accrued Interest * - 14,176 - 4,201
Revolver - 90,018 - -
Unsecured debt 192,879 297,064 1,144 270,594
Other / Intercompany - 201,020 - 5,016
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - -
Less: Unearned compensation - (458) - -
Redeemable preferred stock 26,541 (15,448) - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 48
Additional paid-in capital (367,555) (229,904) - 83,348
Retained earnings 191,923 (215,396) 15,333 (90,594)
Pension adjustment - (134) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(175,632) (445,362) 15,334 (7,198)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,632) (447,899) 15,334 (7,198)
TOTAL LIABILITIES AND EQUITY $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING PULP STERLING PULP STERLING FIBERS STERLING CHEMICALS
CHEMICALS US, INC. CHEMICALS, INC. INC. INT'L, INC.
ASSETS 01-37811-H4-11 01-37812-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 309 $ 714 $ -
Trade accounts receivable, net 1,035 4,546 4,639 -
Other Receivables - - 37 2,971
Due from affiliates 156 3,077 - -
Inventories 339 1,725 10,983 -
Prepaid expenses - - - (283)
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,530 9,657 16,373 2,688
Property, plant and equipment, net - 45,184 6,407 -
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs 3,199 - - -
Other assets - - 1,828 2,811
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - - 57,221 3,652
Secured Debt Accrued Interest * - - 3,580 228
Revolver - - - -
Unsecured debt 236 62,551 62,331 840
Other / Intercompany - - 14,125 -
Deferred income taxes - -
Common stock held by new ESOP - - 35 -
Less: Unearned compensation - - 458 -
Redeemable preferred stock - - 15,448 -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - - - -
Additional paid-in capital (5,370) 3,199 9,676 -
Retained earnings (877) (10,909) (138,266) 779
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
4,493 (7,710) (128,590) 779
Treasury stock at cost
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 4,493 (7,710) (128,590) 779
TOTAL LIABILITIES AND EQUITY $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 10,586
Trade accounts receivable, net - 57,377
Other Receivables (2,971) 5,547
Due from affiliates (50,909) 2,968
Inventories - 43,601
Prepaid expenses - 1,119
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (53,880) 121,198
Property, plant and equipment, net - 187,001
Deferred income taxes - -
Investments-Third Party - 6,262
Investments in Subs (398,721) 31,772
Other assets (1) 57,448
----------------------------------
TOTAL ASSETS $(452,602) $ 403,681
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (3,808) 18,377
Revolver - 90,018
Unsecured debt (129,602) 758,037
Other / Intercompany (201,020) 19,141
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 26,541
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (57,298) (553,164)
Retained earnings - (248,007)
Pension adjustment - (134)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(57,299) (801,185)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (57,299) (803,722)
TOTAL LIABILITIES AND EQUITY $(452,602) $ 403,681
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
8
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED AUGUST 31, 2001
(IN THOUSANDS)(UNAUDITED)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS US,
HOLDINGS INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,369 $ 2,157 $ -- $ 508 $ --
Trade accounts receivable, net -- 40,055 95 2,445 1,204
Other Receivables -- 3,307 -- 4,260 --
Due from affiliates -- 18,867 11,642 43,376 785
Inventories -- 26,875 -- -- 253
Prepaid expenses 35 2,390 -- -- --
Deferred income tax benefit -- -- -- -- --
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,404 93,651 11,737 50,589 2,242
Property, plant and equipment, net -- 129,048 3,389 -- --
Deferred income taxes -- -- -- -- --
Investments-Third Party -- 6,262 -- -- --
Investments in Subs 35,060 95,073 -- 297,161 3,199
Other assets 7,258 20,622 4,339 7,848 --
----------------------------------------------------------------------------------
TOTAL ASSETS $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2 95,939 2,240 20,216 780
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 67,152 --
Secured Debt Accrued Interest * -- 17,701 -- 5,240 --
Unsecured debt 192,878 277,993 1,351 265,001 231
Other / Intercompany -- 201,020 -- 4,904 --
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 254 -- -- --
Less: Unearned compensation -- (458) -- -- --
Redeemable preferred stock 26,541 (15,203) -- -- --
STOCKHOLDERS' EQUITY: --
Common stock, $.01 par value -- 75 1 48 --
Additional paid-in capital (367,555) (229,904) -- 83,348 5,370
Retained earnings-Filing Date 191,923 (215,396) 15,333 (90,594) (877)
Retained earnings-Post Filing Date (67) (12,538) 540 283 (63)
Pension adjustment -- (135) -- -- --
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- (3) -- -- --
---------------------------------------------------------------------------------
(175,699) (457,901) 15,874 (6,915) 4,430
Treasury stock at cost -- (2,537) -- -- --
---------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,699) (460,438) 15,874 (6,915) 4,430
TOTAL LIABILITIES AND EQUITY $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
=================================================================================
$ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ (79) $ 361 $ -- $ -- $ 4,316
Trade accounts receivable, net 4,177 4,724 -- -- 52,700
Other Receivables 37 -- -- 7,604
Due from affiliates 6,855 2,811 3,094 (83,255) 4,175
Inventories 1,693 8,863 -- -- 37,684
Prepaid expenses -- (283) -- 2,142
Deferred income tax benefit -- -- -- -- --
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,646 16,796 2,811 (83,255) 108,621
Property, plant and equipment, net 44,633 6,352 -- -- 183,422
Deferred income taxes -- -- -- -- --
Investments-Third Party -- -- -- -- 6,262
Investments in Subs -- -- -- (398,721) 31,772
Other assets -- 1,452 2,777 (1) 44,295
--------------------------------------------------------------------------
TOTAL ASSETS $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2,620 3,433 13 (27,514) 97,729
Pre-Petition liabilities:
Notes Payable - Secured * -- 57,221 3,652 (60,873) 295,000
Secured Debt Accrued Interest * -- 4,465 285 (4,750) 22,941
Unsecured debt 62,478 73,333 840 (130,521) 743,584
Other / Intercompany -- -- (201,020) 4,904
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 35 -- -- 289
Less: Unearned compensation -- 458 -- -- --
Redeemable preferred stock -- 15,448 -- -- 26,786
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- -- -- (1) 123
Additional paid-in capital 3,199 9,676 -- (57,298) (553,164)
Retained earnings-Filing Date (10,909) (138,266) 779 -- (248,007)
Retained earnings-Post Filing Date (109) (1,203) 19 -- (13,138)
Pension adjustment -- -- -- -- (135)
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- -- -- -- (3)
--------------------------------------------------------------------------
(7,819) (129,793) 798 (57,299) (814,324)
Treasury stock at cost -- -- -- -- (2,537)
--------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (7,819) (129,793) 798 (57,299) (816,861)
TOTAL LIABILITIES AND EQUITY $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
$ -- $ -- $ -- $ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage
is pushed down to the subsidiaries.
MOR 2 - 3
9
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
FOR THE PERIOD ENDING AUGUST 31, 2001
(IN THOUSANDS)
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS, US, CHEMICALS,
HOLDINGS INC. INC. ENERGY, INC. INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 28,667 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- 48 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- 925 -- -- -- 40
TOTAL TAXES PAYABLE $ -- $ 973 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION -- 41,472 -- -- -- --
ACCRUED INTEREST PAYABLE -- 234 -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- 2,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 22,593 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 95,939 $ 2,240 $ 20,216 $ 780 $ 2,620
====================================================================================================================================
-------------------------------------------------------------
STERLING STERLING
FIBERS CHEMICALS
INC. INT'L, INC. DEBTORS
01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 13 $ (8,105) $ 28,458
ROYALTY AND REVENUE PAYABLE -- -- -- --
NOTES PAYABLE -- -- (19,409) --
TAX PAYABLE: -- -- -- --
Federal Payroll Taxes 5 -- -- 5
State Payroll & Sales 13 -- -- 61
Ad Valorem Taxes -- -- -- --
Other Taxes (Property/franchise) 389 -- -- 1,354
TOTAL TAXES PAYABLE $ 407 $ -- $ -- $ 1,420
SECURED DEBT POST-PETITION -- -- -- 41,472
ACCRUED INTEREST PAYABLE -- -- -- 234
*ACCRUED PROFESSIONAL FEES: -- -- -- 2,000
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- 24,145
2. Lease Operating Expenses/Capital -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 13 $ (27,514) $ 97,729
=====================================================================================================
*Payment Requires Court Approval
MOR-4
10
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 8/31/01
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- ----- ----------- --------- ----------- ----------- -------------
0-30 $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
31-60 -- -- -- -- --
61-90 -- -- -- -- --
91 + -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
========== ========== ========== ========== ========== ==========
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
-----
0-30 $ 42,120 $ 42,120 $ -- $ -- $ -- $ --
31-60 4,151 4,151 -- -- --
61-90 1,154 1,154 -- -- --
91 + 5,274 5,274 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL $ 52,699 $ 52,699 $ -- $ -- $ -- $ --
========== ========== ========== ========== ========== ==========
(1) MOR-5 is presented only on a consolidated debtor basis.
(2) Days aging from due date.
(3) Days aging from invoice due date.
MOR-5
11
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS) CASE NUMBER: See Each Company Below
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STATEMENT OF INCOME (LOSS)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 36,458,061 $ 327,939 $ 1,688,935 $ 595,406
TOTAL COST OF REVENUES -- 38,535,886 327,939 29,600 624,624
GROSS PROFIT $ -- $ (2,077,825) $ -- $ 1,659,335 $ (29,218)
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,772 $ 858,049 $ -- $ 406,973 $ 32,298
Insiders Compensation -- 173,179 -- -- --
Professional Fees -- 2,015,000 -- -- --
Other (attach list) -- 539,842 (539,842) -- --
TOTAL OPERATING EXPENSE $ 1,772 $ 3,586,070 $ (539,842) $ 406,973 $ 32,298
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (1,772) $ (5,663,895) $ 539,842 $ 1,252,362 $ (61,516)
INTEREST EXPENSE (includes amort of debt fees) (6,595) 3,553,595 -- 250,944 --
DEPRECIATION 71,765 3,293,410 -- 718,977 --
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 65,170 $ 6,847,005 $ -- $ 969,921 $ --
=================================================================================================================================
NET INCOME BEFORE TAXES $ (66,942) $ (12,510,900) $ 539,842 $ 282,441 $ (61,516)
INCOME TAXES -- 27,000 -- -- --
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (66,942) $ (12,537,900) $ 539,842 $ 282,441 $ (61,516)
=================================================================================================================================
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 4,044,462 $ 4,472,168 $ 123,655 $ (123,655) $ 47,586,971
TOTAL COST OF REVENUES 1,909,929 4,472,502 -- (123,655) 45,776,825
GROSS PROFIT $ 2,134,533 $ (334) $ 123,655 $ -- $ 1,810,146
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 2,325,050
Insiders Compensation -- -- -- -- 173,179
Professional Fees -- -- -- -- 2,015,000
Other (attach list) -- -- -- -- --
-- --
TOTAL OPERATING EXPENSE $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 4,513,229
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 503,539 $ (209,403) $ 110,646 827,114 (2,703,083)
INTEREST EXPENSE (includes amort of debt fees) -- 921,502 56,498 827,114 5,603,058
DEPRECIATION 612,861 71,658 34,500 -- 4,803,171
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 612,861 $ 993,160 $ 90,998 $ 827,114 $ 10,406,229
==============================================================================================================================
NET INCOME BEFORE TAXES $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,109,312)
INCOME TAXES -- -- -- -- 27,000
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,136,312)
==============================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or frequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
12
CASE NUMBER: SEE EACH COMPANY BELOW
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ 539,842 $ (539,842) $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ 539,842 $ (539,842) $ -- $ --
=================================================================================================================================
STERLING PULP STERLING STERLING
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC. DEBTORS
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ -- $ -- $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
MOR-6 ATTACHMENT
13
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
CASH RECEIPTS AND FILING TO
DISBURSEMENTS 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DATE
------------- ------------- ------ ------ ------ ------ ------ ---------
1. CASH-BEGINNING OF MONTH 100 -- -- -- -- -- 100
============= ====== ====== ====== ====== ====== =========
RECEIPTS:
2. CASH SALES -- -- -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 120,876 -- -- -- -- -- 120,876
4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- -- -- --
6. OTHER (attach list) 924,640 -- -- -- -- -- 924,640
------------- ------ ------ ------ ------ ------ ---------
TOTAL RECEIPTS 1,045,517 -- -- -- -- -- 1,045,517
------------- ------ ------ ------ ------ ------ ---------
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A
============= ====== ====== ====== ====== ====== =========
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- --
10.SECURED/RENTAL/LEASES -- -- -- -- -- -- --
11.UTILITIES 924,640 -- -- -- -- -- 924,640
12.INSURANCE -- -- -- -- -- -- --
13.INVENTORY PURCHASES -- -- -- -- -- -- --
14.VEHICLE EXPENSES -- -- -- -- -- -- --
15.TRAVEL & ENTERTAINMENT -- -- -- -- -- -- --
16.REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- --
17.ADMINISTRATIVE & SELLING -- -- -- -- -- -- --
18.OTHER (attach list) 120,876 -- -- -- -- -- 120,876
------------- ------ ------ ------ ------ ------ ---------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,045,517 -- -- -- -- -- 1,045,517
============= ====== ====== ====== ====== ====== =========
19.PROFESSIONAL FEES -- -- -- -- -- -- --
20.U.S. TRUSTEE FEES -- -- -- -- -- -- --
------------- ------ ------ ------ ------ ------ --------
21.OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- --
------------- ------ ------ ------ ------ ------ --------
TOTAL DISBURSEMENTS 1,045,517 -- -- -- -- -- 1,045,517
============= ====== ====== ====== ====== ====== =========
22.NET CASH FLOW -- -- -- -- -- -- --
23.CASH - END OF MONTH (MOR-2) 100 -- -- -- -- -- 100
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
14
CASE NAME: STERLING CHEMICALS ENERGY, INC.
FOR THE PERIOD 7/17/01 - 8/31/01
CASH RECEIPTS AND Chase Chase Total
DISBURSEMENTS 00103317203 00101818459 Debtor
------------- ----------- ----------- ---------
1. CASH-BEGINNING OF MONTH -- 100 100
======= ======= =========
RECEIPTS:
2. CASH SALES -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- 120,876 120,876
4. LOANS & ADVANCES (attach list) -- -- --
5. SALE OF ASSETS -- -- --
6. OTHER (attach list) 924,640 -- 924,640
------- ------- ---------
TOTAL RECEIPTS 924,640 120,876 1,045,517
------- ------- ---------
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A
======= ======= =========
DISBURSEMENTS:
7. NET PAYROLL -- -- --
8. PAYROLL TAXES PAID -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- --
10. SECURED/RENTAL/LEASES -- -- --
11. UTILITIES 924,640 -- 924,640
12. INSURANCE -- -- --
13. INVENTORY PURCHASES -- -- --
14. VEHICLE EXPENSES -- -- --
15. TRAVEL & ENTERTAINMENT -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- --
17. ADMINISTRATIVE & SELLING -- -- --
18. OTHER (attach list) -- 120,876 120,876
------- ------- ---------
TOTAL DISBURSEMENTS FROM OPERATIONS 924,640 120,876 1,045,517
======= ======= =========
19. PROFESSIONAL FEES -- -- --
20. U.S. TRUSTEE FEES -- -- --
------- ------- ---------
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- --
TOTAL DISBURSEMENTS 924,640 120,876 1,045,517
======= ======= =========
22. NET CASH FLOW -- -- --
23. CASH - END OF MONTH (MOR-2) -- 100 100
MOR-7 *Applies to Individual debtor's only.
15
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
OTHER CASH RECEIPTS AND FILING TO
DISBURSEMENTS: 8/31/2001(1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DATE
-------------- ------------ ------ ------ ------ ------ ------ --------
6. OTHER RECEIPTS:
Interest Income -- -- -- -- -- -- --
401(k) Plan Refund -- -- -- -- -- -- --
Cobra Insurance Payment -- -- -- -- -- -- --
Miscellaneous -- -- -- -- -- -- --
Emission Credits -- -- -- -- -- -- --
Intercompany Funding 924,640 -- -- -- -- -- 924,640
-------- ------ ------ ------ ------ ------ --------
TOTAL OTHER RECEIPTS 924,640 -- -- -- -- -- 924,640
======== ====== ====== ====== ====== ====== ========
18. OTHER DISBURSEMENTS:
Capital Expenditures -- -- -- -- -- -- --
Interest Payment -- -- -- -- -- -- --
Restricted Cash - Bond Funding -- -- -- -- -- -- --
Pre-petition checks voided in current period -- -- -- -- -- -- --
Revolver payment to CIT 120,876 -- -- -- -- -- 120,876
-------- ------ ------ ------ ------ ------ --------
TOTAL OTHER DISBURSEMENTS 120,876 -- -- -- -- -- 120,876
======== ====== ====== ====== ====== ====== ========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
16
CASE NAME: STERLING CHEMICALS ENERGY, INC.
FOR THE PERIOD 7/17/01 - 8/31/01
OTHER CASH RECEIPTS AND Chase Chase Total
DISBURSEMENTS: 00103317203 00101818459 Debtor
-------------- ----------- ----------- ------
6. OTHER RECEIPTS:
Interest Income -- -- --
401(k) Plan Refund -- -- --
Cobra Insurance Payment -- -- --
Miscellaneous -- -- --
Emission Credits -- -- --
Intercompany Transfer 924,640 -- 924,640
------- ------- -------
TOTAL OTHER RECEIPTS 924,640 -- 924,640
======= ======= =======
18. OTHER DISBURSEMENTS:
Capital Expenditures -- -- --
Interest Payment -- -- --
Restricted Cash - Bond Funding -- -- --
Pre-petition checks voided in current period -- -- --
CIT Revolver Payments -- 120,876 120,876
------- ------- -------
TOTAL OTHER DISBURSEMENTS -- 120,876 120,876
======= ======= =======
MOR-7 ATTACHMENT
17
CASE NAME: Sterling Chemicals Energy, Inc. CASE NUMBER: 01-37807-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
------------ ------
BANK BALANCE $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
------ ------ ------ ------ ------ ------ ------ ------ ------
ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
====== ====== ====== ====== ====== ====== ====== ====== ======
BEGINNING CASH - PER BOOKS $ --
RECEIPTS --
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL)CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS --
------ ------ ------ ------ ------ ------ ------ ------ ------
ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
====== ====== ====== ====== ====== ====== ====== ====== ======
Note: Bank statements have not been received in time to complete this report.
Future reports will include reconciliations for the prior month.
MOR-8
18
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
PAYMENT TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO
INSIDERS: NAME/POSITION/COMP TYPE(2) 8/31/2001(1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
------------------------------------ ------------ -------- -------- -------- -------- -------- ---------
1 $ -- $ -- $ -- $ -- $ -- $ -- $ --
2 -- -- -- -- -- -- --
3 -- -- -- -- -- -- --
4 -- -- -- -- -- -- --
5 -- -- -- -- -- -- --
6 -- -- -- -- -- -- --
7 -- -- -- -- -- -- --
8 -- -- -- -- -- -- --
9 -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
========= ========= ========= ========= ========= ========= =========
PROFESSIONALS FILING TO
NAME/ORDER DATE 8/31/2001(1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
--------------- ------------ -------- -------- -------- -------- -------- ---------
1 $ -- $ -- $ -- $ -- $ -- $ -- $ --
2 -- -- -- -- -- -- --
3 -- -- -- -- -- -- --
4 -- -- -- -- -- -- --
5 -- -- -- -- -- -- --
6 -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
========= ========= ========= ========= ========= ========= =========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01.
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii)
OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES
AND EXCHANGE ACT OF 1934, (iii) AFFILIATES ; AND (iv) PARTIES TO THE VOTING
AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE
VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS
FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE
DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO
THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH
INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE
REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS
THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON
BEHALF OF ITS EMPLOYEES.
(3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE,
ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE
#01-37806-H4-11.
MOR-9
EX-99.4
6
h90773ex99-4.txt
MONTHLY OPERATING REPORT FOR STERLING FIBERS INC
1
EXHIBIT 99.4
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: STERLING FIBERS, INC. PETITION DATE: 07/16/01
CASE NUMBER: 01-37808-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2001
MONTH 7/16/01-8/31/01
-----------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 4,472,168 $ -- $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (209,403) $ -- $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $ (1,202,563) $ -- $ -- $ -- $ -- $ --
PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
TOTAL DISBURSEMENTS (MOR-7) $ 6,063,610 $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy
Court and a COPY MUST BE SENT to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
See attachment 2 DATE
----------------------------- ----
CASUALTY YES (x) NO ( ) 08 - 01 - 02
LIABILITY YES (x) NO ( ) 07 - 01 - 02
VEHICLE YES (x) NO ( ) 07 - 01 - 02
WORKER'S YES (x) NO ( ) 07 - 01 - 02
OTHER YES (x) NO ( ) various
ATTORNEY NAME: Jeff Spiers
FIRM: Andrews & Kurth LLP
ADDRESS: 600 Travis
ADDRESS: Suite 4200
CITY, STATE ZIP: Houston, TX 77002
TELEPHONE: 713-220-4103
Are all accounts receivable being collected within terms? NO
Are all post-petition liabilities, including taxes, being paid with terms? YES
Have any pre-petition liabilities been paid? YES If so, describe
See Attachment 3
--------------------------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES
Were any assets disposed of outside the normal course of business? NO
If so, describe
----------------------------------------------------------------
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization?
A Plan of Reorganization is currently being developed.
--------------------------------------------------------------------------------
I certify under penalty of perjury that the following
complete Monthly Operating Report (MOR), consisting
of MOR-1 through MOR-9 plus attachments, is true and
correct.
SIGNED /s/ PAUL VANDERHOVEN
----------------------------------------------
(ORIGINAL SIGNATURE)
TITLE VP Finance, CFO
----------------------------------------------
MOR-1
2
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
PAID
COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH
------------------------------------------------------------------------------------------------------------------------------------
See Attachment 2
MOR-1 ATTACHMENT 2
3
Page 1 of 3
9/14/01
SUMMARY OF COVERAGES
FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
1 Workers Compensation Statutory - $1,000,000 American Guar. 1 year 7/1/2002
Employers Liability. Ded. Zurich US
$250,000 per accident.
2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/2002
Ded. $25,000 per occurrence. Zurich Amer.
3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/2002
Excess to $1 Million SIR aggregate. Excess $1,000,000
GL $2,000,000 AL.
4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. (Reinsured 1 year 7/1/2002
aggregate. through AIG.)
5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/2002
aggregate.
6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 7/1/2002
aggregate. Lore
7 Excess Liability $50,000,000 Zurich 1 year 7/1/2002
8 Excess Liability $50,000,000 AIG 1 year 7/1/2002
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
1 Workers Compensation Total annual remuneration $195,653 - Audit at (AFCO) expiration.
Plus all losses within deductible.
Paid through 10/1/01.
2 Automobile Liability Number of vehicles owned $92,955 (AFCO) - Paid through 10/1/01.
and leased
3 Excess Liability Annual revenues and $451,090 Annual - Half on
Excess to $1 Million SIR remuneration 7/1/01; 1/2 on 1/1/02. Paid through 1/1/02.
4 Excess Liability Included Included - Paid through 1/1/02.
5 Excess Liability Flat charge - based on $295,000 - Paid through expiration.
exposures and risk
potential
6 Excess Liability Flat charge - based on $241,886 - Paid through expiration.
exposures and risk
potential
7 Excess Liability Flat charge $109,210 - Paid through expiration.
8 Excess Liability Flat Charge $80,938 - Paid through expiration.
4
Page 2 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
9 Excess Liability $50,000,000 Starr Excess 1 year 7/1/2002
10 Marine Terminal Operators $50,000,000 ea. occurrence. New Hampshire Ins. Co. 1 year 7/1/2002
Liability and Charterer's Ded. $25,000 per occurrence thru Marsh London
Legal Liability $100,000 pollution per
occurrence.
11 Excess Marine Liability $24,000,000 excess of MTO, XL Specialty 1 year 7/1/2002
CLL, P&L Brockbank &
Liberty Und.
12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/2002
Brockbank & N.Y.
Marine Gen. Ins.
13 Property Damage, Business $ Total insured values Munich Re: et. al. 1 year 8/1/2002
Interruption and Boiler & combined all-risk. Sublimits:
Machinery Flood - $100 mil., Earthquake
- $100 mil., $10 mil extra
expense. Ded.: Petrochem
$1,000,000 PD, 10 day - BI.
Pulp & Fibers - $1 mil. PD/BI.
14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/2002
Liability policy year. Ded. $1,000,000 Indemnity
Corp. Reimb.
15 Excess Directors & $10,000,000 excess of Primary Hartford 1 year 8/21/2002
Officers Liability D&O
16 Directors & Officers $10,000,000 XL Specialty Ins. Co. 1 year 8/21/2002
Liability
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
9 Excess Liability Flat Charge $62,500 - Paid through expiration.
10 Marine Terminal Operators Based on volume $27,000 (AFCO) Min. premium & deposit.
Liability and Charterer's throughput and no. Paid through 10/1/01.
Legal Liability chartered vessels.
11 Excess Marine Liability Volume thru put & $57,375 - Paid through 10/1/01.
vessels docked.
12 Excess Marine Liability Flat $21,250 - Paid through 10/1/01.
13 Property Damage, Business Property Values - Annual - Financed through
Interruption and Boiler & PD Income values - AFCO. $4.0M (est.) Paid through 10/1/01.
Machinery BI PML, fire protection
available; many
other factors.
14 Directors & Officers Various $316,000 (15 mos.) - Paid through expiration.
Liability
15 Excess Directors & Various $223,700 (15 mos.) - Paid through expiration.
Officers Liability
16 Directors & Officers Various $115,000 (15 mos.) - Paid through expiration.
Liability
5
Page 3 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/2001
Depositor's Forgery Agreement. Ded. $25,000. Chubb
18 Hull & Machinery and Barge Hull Value Zurich-American 1 year 7/1/2002
Protection & Indemnity (M-25 = $1,500,000) Insurance Co.
Ded. $5,000 per loss.
$1,000,000 P&I
19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/2002
Section B - $5,000,000 Insurance
CERCLA - $5,000,000 Syndicate
20 Marine and Railroad Cargo $12,000,000 any one vessel Mutual Marine 1 year Continuing
$1,000,000 any one barge
$1,000,000 any one rail ship.
$100,000 any one truck
21 Office Contents $1,000,000 Phoenix Assur. 1 year 10/1/2001
22 Duty Drawback Bond $1,000,000 Washington 1 year Continuing
International
23 Fiduciary $10,000,000 National Union 1 year 8/21/2002
Ded. $250,000 per occurrence
24 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/2002
Liability (Petrochem & $8,000,000 aggregate (Indian Harbor)
Fibers)
25 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous
Bonds - Petrochem Indemnity
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
17 Employee Dishonesty & Various $20,000 Paid through 10/1/01.
Depositor's Forgery
18 Hull & Machinery and Hull & Machinery $29,378 (AFCO) Paid through 10/1/01.
Protection & Indemnity values
19 Pollution Insurance Hull gross registered $4,258 (AFCO) Paid through 10/1/01.
tonnage
20 Marine and Railroad Cargo Declared shipment $40,000 Annual Approx. Paid through 10/1/01.
values
21 Office Contents Limit $4,500 - Paid through expiration.
22 Duty Drawback Bond Limit $2,875 - Paid through 11/17/01.
23 Fiduciary Various $22,000 - Financed through Imperial. Renewal binder issued.
Processing annual payment.
24 Environmental Impairment Loss Potential $106,200 - Financed through AFCO. Paid through 1/15/02.
Liability (Petrochem &
Fibers)
25 Closure/Post Closure Estimated $40,610 Paid through 1/1/02.
Bonds - Petrochem Closure/Post
Closure Costs
ANNUAL TOTAL: $3,459,260 *
*Total fluctuates due to cargo premiums dependence upon volume of CIF
export shipments and annual audits of Worker's Compensation and Marine Terminal
policies.
6
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING PULP CHEMICALS, INC. CASE #01-37812-H4-11
Norfolk Southern Railway $ 62,827.78 Shippers
CSX Transportation $ 8,882.00 Shippers
Albany Scale Co. $ 4,096.75 Critical Vendor
Davidson Transport $ 5,797.49 Shippers
--------------
TOTAL $ 81,604.02
==============
STERLING PULP US, INC. CASE #01-37811-H4-11
--------------
Canada Customs & Revenue Agency $ 1,840.45
==============
STERLING FIBERS, INC. CASE #01-37808-H4-11
Crocker Technical Papers $ 77,244.52 Critical Vendor
Direct Line Commodities $ 18,530.10 Critical Vendor
Celedon Trucking Services $ 20,986.49 Shippers
Mini Fibers, Inc. $ 127,665.67 Critical Vendor
DeRijke $ 12,129.02
Engineered Fibers Tech (EFT) $ 14,101.44 Critical Vendor
CSX Transportation $ 14,411.88 Shippers
Shaskikumar Daftary $ 238.97 Independent contractor
Charlie Hummel $ 2,160.00 Independent contractor
Ceridian Employer Services $ 246.67 Payroll/Benefit Admin payroll service provider
A Agrawal $ 2,522.32 Payroll/Benefit Admin (expense reimbursement)
H Chever $ 521.80 Payroll/Benefit Admin (expense reimbursement)
NDCunningham $ 390.00 Shippers
Affiliated Brokers $ 97.04 Shippers
J Hagerott $ 1,757.02 Payroll/Benefit Admin (expense reimbursement)
B Montz $ 752.79 Payroll/Benefit Admin (expense reimbursement)
--------------
TOTAL $ 293,755.73
==============
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
Aubrey Cannon $ 325.58 Payroll/Benefit Admin (expense reimbursement)
Charles Cannon $ 16.38 Payroll/Benefit Admin (expense reimbursement)
Karol Cripps $ 45.00 Payroll/Benefit Admin (expense reimbursement)
Greg Escamilla $ 80.25 Payroll/Benefit Admin (expense reimbursement)
Gene Kenyon $ 1,327.42 Payroll/Benefit Admin (expense reimbursement)
Dennis Kos $ 324.78 Payroll/Benefit Admin (expense reimbursement)
Wes Noel $ 62.10 Payroll/Benefit Admin (expense reimbursement)
Jack Pollock $ 45.72 Payroll/Benefit Admin (expense reimbursement)
--------------
Total Employee Exp. Reimbursements $ 2,227.23
--------------
Blue Cross & Blue Shield of Florida $ 170,716.53 payroll/benefit admin
Crawford & Company $ 1,819.85 Workers Comp
AFCO $ 10,220.80 Insurance Coverage
Bayport Occupational Med $ 11,812.00 Independent Contractor
BNSF Railroad $ 157,944.95 Shippers
Ceridian $ 1,277.29 payroll/benefit admin
Federal Express $ 1,502.71 Shippers
Imperial Premium Finance $ 10,584.23 Insurance Coverage
Jeil Marine $ 26,629.16 Shippers
Prescription Solutions $ 178,558.97 payroll/benefit admin
Union Pacific Railroad $ 48,700.00 Shippers
Woolim Shipping $ 68,676.82 Shippers
--------------
Total Vendor Payments $ 688,443.31
--------------
CIT Revolving Credit Facility $95,279,975.09
--------------
TOTAL $95,970,645.63
==============
TOTAL DEBTOR PREFILE LIAB. PAID $96,347,845.83
==============
SUMMARY
CIT Revolving Credit Facility $95,279,975.09
Critical Vendors $ 241,638.48
Shippers $ 416,846.32
Other $ 409,385.94
--------------
TOTAL $96,347,845.83
==============
7
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED JULY 16, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING CANADA,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,362 $ 9,138 $ (1,208) $ 271
Trade accounts receivable, net - 43,168 327 3,662
Other Receivables - 1,268 - 4,242
Due from affiliates - 21,298 9,115 20,231
Inventories - 30,554 - -
Prepaid expenses 12 1,390 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,374 106,816 8,234 28,406
Property, plant and equipment, net - 131,928 3,482 -
Deferred income taxes - - - -
Investments-Third Party - 6,262 - -
Investments in Subs 35,060 95,073 - 297,161
Other assets 7,354 26,496 4,762 14,198
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 67,152
Secured Debt Accrued Interest * - 14,176 - 4,201
Revolver - 90,018 - -
Unsecured debt 192,879 297,064 1,144 270,594
Other / Intercompany - 201,020 - 5,016
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - -
Less: Unearned compensation - (458) - -
Redeemable preferred stock 26,541 (15,448) - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 48
Additional paid-in capital (367,555) (229,904) - 83,348
Retained earnings 191,923 (215,396) 15,333 (90,594)
Pension adjustment - (134) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(175,632) (445,362) 15,334 (7,198)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,632) (447,899) 15,334 (7,198)
TOTAL LIABILITIES AND EQUITY $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING PULP STERLING PULP STERLING FIBERS STERLING CHEMICALS
CHEMICALS US, INC. CHEMICALS, INC. INC. INT'L, INC.
ASSETS 01-37811-H4-11 01-37812-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 309 $ 714 $ -
Trade accounts receivable, net 1,035 4,546 4,639 -
Other Receivables - - 37 2,971
Due from affiliates 156 3,077 - -
Inventories 339 1,725 10,983 -
Prepaid expenses - - - (283)
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,530 9,657 16,373 2,688
Property, plant and equipment, net - 45,184 6,407 -
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs 3,199 - - -
Other assets - - 1,828 2,811
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - - 57,221 3,652
Secured Debt Accrued Interest * - - 3,580 228
Revolver - - - -
Unsecured debt 236 62,551 62,331 840
Other / Intercompany - - 14,125 -
Deferred income taxes - -
Common stock held by new ESOP - - 35 -
Less: Unearned compensation - - 458 -
Redeemable preferred stock - - 15,448 -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - - - -
Additional paid-in capital (5,370) 3,199 9,676 -
Retained earnings (877) (10,909) (138,266) 779
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
4,493 (7,710) (128,590) 779
Treasury stock at cost
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 4,493 (7,710) (128,590) 779
TOTAL LIABILITIES AND EQUITY $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 10,586
Trade accounts receivable, net - 57,377
Other Receivables (2,971) 5,547
Due from affiliates (50,909) 2,968
Inventories - 43,601
Prepaid expenses - 1,119
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (53,880) 121,198
Property, plant and equipment, net - 187,001
Deferred income taxes - -
Investments-Third Party - 6,262
Investments in Subs (398,721) 31,772
Other assets (1) 57,448
----------------------------------
TOTAL ASSETS $(452,602) $ 403,681
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (3,808) 18,377
Revolver - 90,018
Unsecured debt (129,602) 758,037
Other / Intercompany (201,020) 19,141
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 26,541
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (57,298) (553,164)
Retained earnings - (248,007)
Pension adjustment - (134)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(57,299) (801,185)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (57,299) (803,722)
TOTAL LIABILITIES AND EQUITY $(452,602) $ 403,681
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
8
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED AUGUST 31, 2001
(IN THOUSANDS)(UNAUDITED)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS US,
HOLDINGS INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,369 $ 2,157 $ -- $ 508 $ --
Trade accounts receivable, net -- 40,055 95 2,445 1,204
Other Receivables -- 3,307 -- 4,260 --
Due from affiliates -- 18,867 11,642 43,376 785
Inventories -- 26,875 -- -- 253
Prepaid expenses 35 2,390 -- -- --
Deferred income tax benefit -- -- -- -- --
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,404 93,651 11,737 50,589 2,242
Property, plant and equipment, net -- 129,048 3,389 -- --
Deferred income taxes -- -- -- -- --
Investments-Third Party -- 6,262 -- -- --
Investments in Subs 35,060 95,073 -- 297,161 3,199
Other assets 7,258 20,622 4,339 7,848 --
----------------------------------------------------------------------------------
TOTAL ASSETS $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2 95,939 2,240 20,216 780
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 67,152 --
Secured Debt Accrued Interest * -- 17,701 -- 5,240 --
Unsecured debt 192,878 277,993 1,351 265,001 231
Other / Intercompany -- 201,020 -- 4,904 --
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 254 -- -- --
Less: Unearned compensation -- (458) -- -- --
Redeemable preferred stock 26,541 (15,203) -- -- --
STOCKHOLDERS' EQUITY: --
Common stock, $.01 par value -- 75 1 48 --
Additional paid-in capital (367,555) (229,904) -- 83,348 5,370
Retained earnings-Filing Date 191,923 (215,396) 15,333 (90,594) (877)
Retained earnings-Post Filing Date (67) (12,538) 540 283 (63)
Pension adjustment -- (135) -- -- --
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- (3) -- -- --
---------------------------------------------------------------------------------
(175,699) (457,901) 15,874 (6,915) 4,430
Treasury stock at cost -- (2,537) -- -- --
---------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,699) (460,438) 15,874 (6,915) 4,430
TOTAL LIABILITIES AND EQUITY $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
=================================================================================
$ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ (79) $ 361 $ -- $ -- $ 4,316
Trade accounts receivable, net 4,177 4,724 -- -- 52,700
Other Receivables 37 -- -- 7,604
Due from affiliates 6,855 2,811 3,094 (83,255) 4,175
Inventories 1,693 8,863 -- -- 37,684
Prepaid expenses -- (283) -- 2,142
Deferred income tax benefit -- -- -- -- --
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,646 16,796 2,811 (83,255) 108,621
Property, plant and equipment, net 44,633 6,352 -- -- 183,422
Deferred income taxes -- -- -- -- --
Investments-Third Party -- -- -- -- 6,262
Investments in Subs -- -- -- (398,721) 31,772
Other assets -- 1,452 2,777 (1) 44,295
--------------------------------------------------------------------------
TOTAL ASSETS $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2,620 3,433 13 (27,514) 97,729
Pre-Petition liabilities:
Notes Payable - Secured * -- 57,221 3,652 (60,873) 295,000
Secured Debt Accrued Interest * -- 4,465 285 (4,750) 22,941
Unsecured debt 62,478 73,333 840 (130,521) 743,584
Other / Intercompany -- -- (201,020) 4,904
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 35 -- -- 289
Less: Unearned compensation -- 458 -- -- --
Redeemable preferred stock -- 15,448 -- -- 26,786
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- -- -- (1) 123
Additional paid-in capital 3,199 9,676 -- (57,298) (553,164)
Retained earnings-Filing Date (10,909) (138,266) 779 -- (248,007)
Retained earnings-Post Filing Date (109) (1,203) 19 -- (13,138)
Pension adjustment -- -- -- -- (135)
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- -- -- -- (3)
--------------------------------------------------------------------------
(7,819) (129,793) 798 (57,299) (814,324)
Treasury stock at cost -- -- -- -- (2,537)
--------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (7,819) (129,793) 798 (57,299) (816,861)
TOTAL LIABILITIES AND EQUITY $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
$ -- $ -- $ -- $ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage
is pushed down to the subsidiaries.
MOR 2 - 3
9
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
FOR THE PERIOD ENDING AUGUST 31, 2001
(IN THOUSANDS)
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS, US, CHEMICALS,
HOLDINGS INC. INC. ENERGY, INC. INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 28,667 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- 48 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- 925 -- -- -- 40
TOTAL TAXES PAYABLE $ -- $ 973 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION -- 41,472 -- -- -- --
ACCRUED INTEREST PAYABLE -- 234 -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- 2,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 22,593 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 95,939 $ 2,240 $ 20,216 $ 780 $ 2,620
====================================================================================================================================
-------------------------------------------------------------
STERLING STERLING
FIBERS CHEMICALS
INC. INT'L, INC. DEBTORS
01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 13 $ (8,105) $ 28,458
ROYALTY AND REVENUE PAYABLE -- -- -- --
NOTES PAYABLE -- -- (19,409) --
TAX PAYABLE: -- -- -- --
Federal Payroll Taxes 5 -- -- 5
State Payroll & Sales 13 -- -- 61
Ad Valorem Taxes -- -- -- --
Other Taxes (Property/franchise) 389 -- -- 1,354
TOTAL TAXES PAYABLE $ 407 $ -- $ -- $ 1,420
SECURED DEBT POST-PETITION -- -- -- 41,472
ACCRUED INTEREST PAYABLE -- -- -- 234
*ACCRUED PROFESSIONAL FEES: -- -- -- 2,000
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- 24,145
2. Lease Operating Expenses/Capital -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 13 $ (27,514) $ 97,729
=====================================================================================================
*Payment Requires Court Approval
MOR-4
10
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 8/31/2001
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- -------- ----------- --------- ----------- ----------- -------------
0-30 $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
31-60 -- -- -- -- -- --
61-90 -- -- -- -- -- --
91 + -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
TOTAL $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
======== ======== ======== ======== ======== ========
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
-----
0-30 $ 42,120 $ 42,120 $ -- $ -- $ -- $ --
31-60 4,151 4,151 -- -- --
61-90 1,154 1,154 -- -- --
91 + 5,274 5,274 -- -- --
-------- -------- -------- -------- -------- --------
TOTAL $ 52,699 $ 52,699 $ -- $ -- $ -- $ --
======== ======== ======== ======== ======== ========
(1) MOR-5 is presented only on a consolidated debtor basis.
(2) Days aging from due date.
(3) Days aging from invoice due date.
MOR-5
11
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS) CASE NUMBER: See Each Company Below
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STATEMENT OF INCOME (LOSS)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 36,458,061 $ 327,939 $ 1,688,935 $ 595,406
TOTAL COST OF REVENUES -- 38,535,886 327,939 29,600 624,624
GROSS PROFIT $ -- $ (2,077,825) $ -- $ 1,659,335 $ (29,218)
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,772 $ 858,049 $ -- $ 406,973 $ 32,298
Insiders Compensation -- 173,179 -- -- --
Professional Fees -- 2,015,000 -- -- --
Other (attach list) -- 539,842 (539,842) -- --
TOTAL OPERATING EXPENSE $ 1,772 $ 3,586,070 $ (539,842) $ 406,973 $ 32,298
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (1,772) $ (5,663,895) $ 539,842 $ 1,252,362 $ (61,516)
INTEREST EXPENSE (includes amort of debt fees) (6,595) 3,553,595 -- 250,944 --
DEPRECIATION 71,765 3,293,410 -- 718,977 --
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 65,170 $ 6,847,005 $ -- $ 969,921 $ --
=================================================================================================================================
NET INCOME BEFORE TAXES $ (66,942) $ (12,510,900) $ 539,842 $ 282,441 $ (61,516)
INCOME TAXES -- 27,000 -- -- --
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (66,942) $ (12,537,900) $ 539,842 $ 282,441 $ (61,516)
=================================================================================================================================
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 4,044,462 $ 4,472,168 $ 123,655 $ (123,655) $ 47,586,971
TOTAL COST OF REVENUES 1,909,929 4,472,502 -- (123,655) 45,776,825
GROSS PROFIT $ 2,134,533 $ (334) $ 123,655 $ -- $ 1,810,146
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 2,325,050
Insiders Compensation -- -- -- -- 173,179
Professional Fees -- -- -- -- 2,015,000
Other (attach list) -- -- -- -- --
-- --
TOTAL OPERATING EXPENSE $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 4,513,229
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 503,539 $ (209,403) $ 110,646 827,114 (2,703,083)
INTEREST EXPENSE (includes amort of debt fees) -- 921,502 56,498 827,114 5,603,058
DEPRECIATION 612,861 71,658 34,500 -- 4,803,171
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 612,861 $ 993,160 $ 90,998 $ 827,114 $ 10,406,229
==============================================================================================================================
NET INCOME BEFORE TAXES $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,109,312)
INCOME TAXES -- -- -- -- 27,000
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,136,312)
==============================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or frequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
12
CASE NUMBER: SEE EACH COMPANY BELOW
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ 539,842 $ (539,842) $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ 539,842 $ (539,842) $ -- $ --
=================================================================================================================================
STERLING PULP STERLING STERLING
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC. DEBTORS
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ -- $ -- $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
MOR-6 ATTACHMENT
13
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
CASH RECEIPTS AND FILING TO
DISBURSEMENTS 8/31/2001 (1) MONTH MONTH MONTH MONTH MONTH DATE
----------------- ----------- ----------- ------ ------ ------ ------ -----------
1. CASH-BEGINNING OF MONTH $ 714,483 $ -- $ -- $ -- $ -- $ -- $ 714,483
----------- ----------- ------ ------ ------ ------ -----------
RECEIPTS:
2. CASH SALES $ -- $ -- $ -- $ -- $ -- $ -- $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 4,481,633 4,481,633
4. LOANS & ADVANCES (attach list) -- --
5. SALE OF ASSETS -- --
6. OTHER (attach list) 1,228,545 1,228,545
TOTAL RECEIPTS $ 5,710,178 $ -- $ -- $ -- $ -- $ -- $ 5,710,178
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A
DISBURSEMENTS:
7. NET PAYROLL $ 319,807 $ -- $ -- $ -- $ -- $ -- $ 319,807
8. PAYROLL TAXES PAID 142,508 142,508
9. SALES, USE & OTHER TAXES PAID -- --
10. SECURED/RENTAL/LEASES -- --
11. UTILITIES 122,540 122,540
12. INSURANCE -- --
13. INVENTORY PURCHASES 47,098 47,098
14. VEHICLE EXPENSES -- --
15. TRAVEL & ENTERTAINMENT 208 208
16. REPAIRS, MAINTENANCE & SUPPLIES 26,090 26,090
17. ADMINISTRATIVE & SELLING -- --
18. OTHER (attach list) 5,405,358 5,405,358
TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,063,610 $ -- $ -- $ -- $ -- $ -- $ 6,063,610
19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- $ -- $ --
20. U.S. TRUSTEE FEES -- -- -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- --
TOTAL DISBURSEMENTS $ 6,063,610 $ -- $ -- $ -- $ -- $ -- $ 6,063,610
22. NET CASH FLOW $ (353,432) $ -- $ -- $ -- $ -- $ -- $ (353,432)
23. CASH - END OF MONTH (MOR-2) $ 361,051 $ -- $ -- $ -- $ -- $ -- $ 361,051
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
14
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
CASH RECEIPTS AND Chase Chase Chase Chase
DISBURSEMENTS 00100547117 00103316965 103405768 630181003508
----------------- ------------ ------------ ------------ ------------
1. CASH-BEGINNING OF MONTH $ 227,680 $ 39,373 $ 266,693 $ --
RECEIPTS:
2. CASH SALES $ -- $ -- $ -- $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 1,544,648 -- -- --
4. LOANS & ADVANCES (attach list) -- -- -- --
5. SALE OF ASSETS -- -- -- --
6. OTHER (attach list) -- 871,000 270,000 --
TOTAL RECEIPTS $ 1,544,648 $ 871,000 $ 270,000 $ --
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A
DISBURSEMENTS:
7. NET PAYROLL $ -- $ -- $ 319,807 $ --
8. PAYROLL TAXES PAID -- -- 142,508 --
9. SALES, USE & OTHER TAXES PAID -- -- -- --
10. SECURED/RENTAL/LEASES -- -- -- --
11. UTILITIES -- 122,540 -- --
12. INSURANCE -- -- -- --
13. INVENTORY PURCHASES -- 47,098 -- --
14. VEHICLE EXPENSES -- -- -- --
15. TRAVEL & ENTERTAINMENT -- 208 -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- 26,090 -- --
17. ADMINISTRATIVE & SELLING -- -- -- --
18. OTHER (attach list) 1,736,918 714,084 -- --
TOTAL DISBURSEMENTS FROM OPERATIONS $ 1,736,918 $ 910,021 $ 462,315 $ --
19. PROFESSIONAL FEES $ -- $ -- $ -- $ --
20. U.S. TRUSTEE FEES -- -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- --
TOTAL DISBURSEMENTS $ 1,736,918 $ 910,021 $ 462,315 $ --
22. NET CASH FLOW $ (192,269) $ (39,021) $ (192,315) $ --
23. CASH - END OF MONTH (MOR-2) $ 35,411 $ 353 $ 74,378 $ --
CASH RECEIPTS AND Bank One Bank of America FILING TO
DISBURSEMENTS 5577659 1171987307 DATE
----------------- ------------ --------------- ------------
1. CASH-BEGINNING OF MONTH $ 106,241 $ 74,495 $ 714,483
RECEIPTS:
2. CASH SALES $ -- $ -- $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 2,936,985 -- 4,481,633
4. LOANS & ADVANCES (attach list) -- -- --
5. SALE OF ASSETS -- -- --
6. OTHER (attach list) 9,978 77,567 1,228,545
TOTAL RECEIPTS $ 2,946,963 $ 77,567 $ 5,710,178
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A
DISBURSEMENTS:
7. NET PAYROLL $ -- $ -- $ 319,807
8. PAYROLL TAXES PAID -- -- 142,508
9. SALES, USE & OTHER TAXES PAID -- -- --
10. SECURED/RENTAL/LEASES -- -- --
11. UTILITIES -- -- 122,540
12. INSURANCE -- -- --
13. INVENTORY PURCHASES -- -- 47,098
14. VEHICLE EXPENSES -- -- --
15. TRAVEL & ENTERTAINMENT -- -- 208
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 26,090
17. ADMINISTRATIVE & SELLING -- -- --
18. OTHER (attach list) 2,954,356 -- 5,405,358
TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,954,356 $ -- $ 6,063,610
19. PROFESSIONAL FEES $ -- $ -- $ --
20. U.S. TRUSTEE FEES -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- --
TOTAL DISBURSEMENTS $ 2,954,356 $ -- $ 6,063,610
22. NET CASH FLOW $ (7,393) $ 77,567 $ (353,432)
23. CASH - END OF MONTH (MOR-2) $ 98,848 $ 152,062 $ 361,051
MOR-7 *Applies to Individual debtor's only.
15
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
OTHER CASH RECEIPTS AND FILING TO
DISBURSEMENTS 8/31/2001 (1) MONTH MONTH MONTH MONTH MONTH DATE
----------------- ----------- ----------- ------ ------ ------ ------ -----------
6. OTHER RECEIPTS:
Interest Income $ 545 $ 545
401(k) Plan Refund -- --
Cobra Insurance Payment 6,083 6,083
Miscellaneous 80,917 80,917
Emission Credits -- --
Intercompany Transfers 871,000 871,000
Account Transfers 270,000 270,000
TOTAL OTHER RECEIPTS $ 1,228,545 $ -- $ -- $ -- $ -- $ -- $ 1,228,545
18. OTHER DISBURSEMENTS:
Capital Expenditures $ 13,000 13,000
Interest Payment -- --
Employee Benefits 55,027 55,027
Pre-petition checks voided in current period (3,215) (3,215)
Insiders -- --
Restricted Cash Transactions --
Contract Services 473,664
Licenses / Fees / Permits 1,439
Freight 87,551
Account Transfers 270,000 270,000
Outstanding checks to Balance to G/L (183,381) (183,381)
CIT Revolver Payments 4,691,274 4,691,274
TOTAL OTHER DISBURSEMENTS $ 5,405,358 $ -- $ -- $ -- $ -- $ -- $ 4,842,704
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
16
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
CHASE BANK OF TEXAS
ACCT 00100547117
OTHER CASH RECEIPTS AND Chase Chase Chase Chase
DISBURSEMENTS: 00100547117 00103316965 103405768 630181003508
----------------------- ------------ ------------ ------------ ------------
6. OTHER RECEIPTS:
Interest Income $ -- $ -- $ -- $ --
401(k) Plan Refund -- -- -- --
Cobra Insurance Payment -- -- -- --
Miscellaneous -- -- -- --
Emission Credits -- -- -- --
Intercompany Transfers -- 871,000 -- --
Account Transfers -- -- 270,000 --
TOTAL OTHER RECEIPTS $ -- $ 871,000 $ 270,000 $ --
18. OTHER DISBURSEMENTS:
Capital Expenditures $ -- 13,000 $ -- $ --
Interest Payment -- -- -- --
Employee Benefits -- 55,027 -- --
Pre-petition checks voided in current period -- (3,215) -- --
Insiders -- -- -- --
Restricted Cash Transactions -- -- -- --
Contract Services -- 473,664 -- --
Licenses / Fees / Permits -- 1,439 -- --
Freight -- 87,551 -- --
Account Transfers -- 270,000 -- --
Outstanding checks to Balance to G/L -- (183,381) -- --
CIT Revolver Payments 1,736,918 -- -- --
TOTAL OTHER DISBURSEMENTS $ 1,736,918 $ 714,084 $ -- $ --
OTHER CASH RECEIPTS AND Bank One Bank of America FILING TO
DISBURSEMENTS: 5577659 1171987307 DATE
----------------------- ----------- --------------- ------------
6. OTHER RECEIPTS:
Interest Income -- 545 $ 545
401(k) Plan Refund -- -- --
Cobra Insurance Payment 6,083 -- 6,083
Miscellaneous 3,895 77,022 80,917
Emission Credits -- -- --
Intercompany Transfers -- -- 871,000
Account Transfers -- -- 270,000
--
--
--
TOTAL OTHER RECEIPTS 9,978 $ 77,567 $ 1,228,545
18. OTHER DISBURSEMENTS:
Capital Expenditures -- $ -- 13,000
Interest Payment -- -- --
Employee Benefits -- -- 55,027
Pre-petition checks voided in current period -- -- (3,215)
Insiders -- -- --
Restricted Cash Transactions -- -- --
Contract Services -- -- 473,664
Licenses / Fees / Permits -- -- 1,439
Freight -- -- 87,551
Account Transfers -- -- 270,000
Outstanding checks to Balance to G/L -- -- (183,381)
CIT Revolver Payments 2,954,356 -- 4,691,274
TOTAL OTHER DISBURSEMENTS 2,954,356 $ -- $ 5,405,358
MOR-7 ATTACHMENT
17
CASE NAME: Sterling Fibers, Inc. CASE NUMBER: 01-37808-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
------------ -----
BANK BALANCE $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
BEGINNING CASH - PER BOOKS $ --
RECEIPTS --
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL) CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS --
ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Note: Bank statements have not been received in time to complete this report.
Future reports will include reconciliations for the prior month.
MOR-8
18
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
PAYMENT TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO
INSIDERS: NAME/POSITION/COMP TYPE (2) 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
------------------------------------- ------------- -------- -------- -------- -------- -------- ---------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
7. -- -- -- -- -- -- --
8. -- -- -- -- -- -- --
9. -- -- -- -- -- -- --
TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO
NAME/ORDER DATE 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
--------------- ------------- -------- -------- -------- -------- -------- ---------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01.
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii)
OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES
AND EXCHANGE ACT OF 1934, (iii) AFFILIATES ; AND (iv) PARTIES TO THE VOTING
AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE
VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS
FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE
DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO
THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH
INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE
REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS
THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON
BEHALF OF ITS EMPLOYEES.
(3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE,
ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE
#01-37806-H4-11.
MOR-9
EX-99.5
7
h90773ex99-5.txt
MONTHLY OPERATING REPORT FOR STERLING CHEM I'NTL
1
EXHIBIT 99.5
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. PETITION DATE: 07/16/01
CASE NUMBER: 01-37809-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2001
MONTH 7/16/01-8/31/01
------------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 123,655 $ -- $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 110,646 $ -- $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $ 19,648 $ -- $ -- $ -- $ -- $ --
PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
TOTAL DISBURSEMENTS (MOR-7) $ -- $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy
Court and a COPY MUST BE SENT to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
See attachment 2 DATE
-----------------------------
CASUALTY YES (x) NO ( ) 08-01-02
LIABILITY YES (x) NO ( ) 07-01-02
VEHICLE YES (x) NO ( ) 07-01-02
WORKER'S YES (x) NO ( ) 07-01-02
OTHER YES (x) NO ( ) various
ATTORNEY NAME: Jeff Spiers
FIRM: Andrews & Kurth LLP
ADDRESS: 600 Travis
ADDRESS: Suite 4200
CITY, STATE ZIP: Houston, TX 77002
TELEPHONE: 713-220-4103
Are all accounts receivable being collected within terms? NO
Are all post-petition liabilities, including taxes, being paid with terms? YES
Have any pre-petition liabilities been paid? YES If so, describe
See Attachment 3
--------------------------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES
Were any assets disposed of outside the normal course of business? NO
If so, describe
-----------------------------------------------------------------
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization?
A Plan of Reorganization is currently being developed.
--------------------------------------------------------------------------------
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED /s/ PAUL VANDERHOVEN
-------------------------------------------
(ORIGINAL SIGNATURE)
TITLE VP Finance, CFO
-------------------------------------------
MOR-1
2
CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11
PAID
COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH
------------------------------------------------------------------------------------------------------------------------------------
See Attachment 2
MOR-1 ATTACHMENT 2
3
Page 1 of 3
9/14/01
SUMMARY OF COVERAGES
FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 7/1/02
Liability. Zurich US
Ded. $250,000 per accident.
2 Automobile Liability $2,000,000 ea. occurrence. Ded. American Guar. 1 year 7/1/02
$25,000 per occurrence. Zurich Amer.
3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/02
Excess to $1 Million SIR aggregate. Excess $1,000,000 GL
$2,000,000 AL.
4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 7/1/02
aggregate. (Reinsured
through AIG.)
5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/02
aggregate.
6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 7/1/02
aggregate. Lore
7 Excess Liability $50,000,000 Zurich 1 year 7/1/02
8 Excess Liability $50,000,000 AIG 1 year 7/1/02
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
1 Workers Compensation Total annual $195,653 - Audit at (AFCO)
remuneration expiration. Plus all losses within
deductible. Paid through 10/1/01.
2 Automobile Liability Number of vehicles $92,955 (AFCO) Paid through 10/1/01.
owned and leased
3 Excess Liability Annual revenues and $451,090 Annual - Half on 7/1/01; 1/2
Excess to $1 Million SIR remuneration on 1/1/02. Paid through 1/1/02.
4 Excess Liability Included Included - Paid through 1/1/02.
5 Excess Liability Flat charge - based $295,000 - Paid through expiration.
on exposures and
risk potential
6 Excess Liability Flat charge - based $241,886 - Paid through expiration.
on exposures and
risk potential
7 Excess Liability Flat charge $109,210 - Paid through expiration.
8 Excess Liability Flat Charge $80,938 - Paid through expiration.
4
Page 2 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
9 Excess Liability $50,000,000 Starr Excess 1 year 7/1/02
10 Marine Terminal $50,000,000 ea. occurrence New Hampshire Ins. 1 year 7/1/02
Operators Liability and Ded. $25,000 per occurrence Co. thru Marsh
Charterer's Legal $100,000 pollution per London
Liability occurrence.
11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 7/1/02
P&L Brockbank &
Liberty Und.
12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/02
Brockbank & N.Y.
Marine Gen. Ins.
13 Property Damage, $ Total insured values combined Munich Re: et. al. 1 year 8/1/02
Business Interruption all-risk. Sublimits: Flood -
and Boiler & Machinery $100 mil., Earthquake - $100
mil., $10 mil extra expense.
Ded.: Petrochem $1,000,000 PD,
10 day - BI. Pulp & Fibers - $1
mil. PD/BI.
14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/02
Liability policy year. Ded. $1,000,000 Indemnity
Corp. Reimb.
15 Excess Directors & $10,000,000 excess of Primary D&O Hartford 1 year 8/21/02
Officers Liability
16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/02
Liability Co.
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
9 Excess Liability Flat Charge $62,500 - Paid through expiration.
10 Marine Terminal Based on volume $27,000 (AFCO) Min. premium & deposit.
Operators Liability and throughput and no. Paid through 10/1/01.
Charterer's Legal chartered vessels.
Liability
11 Excess Marine Liability Volume thru put & $57,375 - Paid through 10/1/01.
vessels docked.
12 Excess Marine Liability Flat $21,250 - Paid through 10/1/01.
13 Property Damage, Property Values - Annual - Financed through AFCO.
Business Interruption PD Income values - $4.0M (est.) Paid through 10/1/01.
and Boiler & Machinery BI PML, fire
protection
available; many
other factors.
14 Directors & Officers Various $316,000 (15 mos.) Paid through expiration.
Liability
15 Excess Directors & Various $223,700 (15 mos.) Paid through expiration.
Officers Liability
16 Directors & Officers Various $115,000 (15 mos.) Paid through expiration.
Liability
5
Page 3 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/01
Depositor's Forgery Agreement. Ded. $25,000. Chubb
18 Hull & Machinery and Barge Hull Value Zurich-American 1 year 7/1/02
Protection & Indemnity (M-25 = $1,500,000) Insurance Co.
Ded. $5,000 per loss.
$1,000,000 P&I
19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/02
Section B - $5,000,000 Insurance Syndicate
CERCLA - $5,000,000
20 Marine and Railroad Cargo $12,000,000 any one vessel Mutual Marine 1 year Continuing
$1,000,000 any one barge
$1,000,000 any one rail ship.
$100,000 any one truck
21 Office Contents $1,000,000 Phoenix Assur. 1 year 10/1/01
22 Duty Drawback Bond $1,000,000 Washington 1 year Continuing
International
23 Fiduciary $10,000,000 National Union 1 year 8/21/02
Ded. $250,000 per occurrence
24 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/02
Liability (Petrochem & $8,000,000 aggregate (Indian Harbor)
Fibers)
25 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous
Bonds - Petrochem Indemnity
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
17 Employee Dishonesty & Various $20,000 - Paid through 10/1/01.
Depositor's Forgery
18 Hull & Machinery and Hull & Machinery $29,378 (AFCO) Paid through 10/1/01.
Protection & Indemnity values
19 Pollution Insurance Hull gross $4,258 (AFCO) Paid through 10/1/01.
registered tonnage
20 Marine and Railroad Cargo Declared shipment $40,000 Annual Approx. Paid through 10/1/01.
values
21 Office Contents Limit $4,500 - Paid through Expiration.
22 Duty Drawback Bond Limit $2,875 - Paid through 11/17/01.
23 Fiduciary Various $22,000 - Financed through Imperial. Renewal binder issued.
Processing annual payment.
24 Environmental Impairment Loss Potential $106,200 - Financed through AFCO. Paid through 1/15/02.
Liability (Petrochem &
Fibers)
25 Closure/Post Closure Estimated $40,610 Paid through 1/1/02.
Bonds - Petrochem Closure/Post
Closure Costs
ANNUAL TOTAL: $3,459,260 *
*Total fluctuates due to cargo premiums dependence upon volume of CIF export
shipments and annual audits of Worker's Compensation and Marine Terminal
policies.
6
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING PULP CHEMICALS, INC. CASE #01-37812-H4-11
Norfolk Southern Railway $ 62,827.78 Shippers
CSX Transportation $ 8,882.00 Shippers
Albany Scale Co. $ 4,096.75 Critical Vendor
Davidson Transport $ 5,797.49 Shippers
---------------
TOTAL $ 81,604.02
===============
STERLING PULP US, INC. CASE #01-37811-H4-11
---------------
Canada Customs & Revenue Agency $ 1,840.45
===============
STERLING FIBERS, INC. CASE #01-37808-H4-11
Crocker Technical Papers $ 77,244.52 Critical Vendor
Direct Line Commodities $ 18,530.10 Critical Vendor
Celedon Trucking Services $ 20,986.49 Shippers
Mini Fibers, Inc. $ 127,665.67 Critical Vendor
DeRijke $ 12,129.02
Engineered Fibers Tech (EFT) $ 14,101.44 Critical Vendor
CSX Transportation $ 14,411.88 Shippers
Shaskikumar Daftary $ 238.97 Independent contractor
Charlie Hummel $ 2,160.00 Independent contractor
Ceridian Employer Services $ 246.67 Payroll/Benefit Admin payroll service provider
A Agrawal $ 2,522.32 Payroll/Benefit Admin (expense reimbursement)
H Chever $ 521.80 Payroll/Benefit Admin (expense reimbursement)
NDCunningham $ 390.00 Shippers
Affiliated Brokers $ 97.04 Shippers
J Hagerott $ 1,757.02 Payroll/Benefit Admin (expense reimbursement)
B Montz $ 752.79 Payroll/Benefit Admin (expense reimbursement)
---------------
TOTAL $ 293,755.73
===============
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
Aubrey Cannon $ 325.58 Payroll/Benefit Admin (expense reimbursement)
Charles Cannon $ 16.38 Payroll/Benefit Admin (expense reimbursement)
Karol Cripps $ 45.00 Payroll/Benefit Admin (expense reimbursement)
Greg Escamilla $ 80.25 Payroll/Benefit Admin (expense reimbursement)
Gene Kenyon $ 1,327.42 Payroll/Benefit Admin (expense reimbursement)
Dennis Kos $ 324.78 Payroll/Benefit Admin (expense reimbursement)
Wes Noel $ 62.10 Payroll/Benefit Admin (expense reimbursement)
Jack Pollock $ 45.72 Payroll/Benefit Admin (expense reimbursement)
---------------
Total Employee Exp. Reimbursements $ 2,227.23
---------------
Blue Cross & Blue Shield of Florida $ 170,716.53 payroll/benefit admin
Crawford & Company $ 1,819.85 Workers Comp
AFCO $ 10,220.80 Insurance Coverage
Bayport Occupational Med $ 11,812.00 Independent Contractor
BNSF Railroad $ 157,944.95 Shippers
Ceridian $ 1,277.29 payroll/benefit admin
Federal Express $ 1,502.71 Shippers
Imperial Premium Finance $ 10,584.23 Insurance Coverage
Jeil Marine $ 26,629.16 Shippers
Prescription Solutions $ 178,558.97 payroll/benefit admin
Union Pacific Railroad $ 48,700.00 Shippers
Woolim Shipping $ 68,676.82 Shippers
---------------
Total Vendor Payments $ 688,443.31
---------------
CIT Revolving Credit Facility $ 95,279,975.09
---------------
TOTAL $ 95,970,645.63
===============
---------------
TOTAL DEBTOR PREFILE LIAB. PAID $ 96,347,845.83
---------------
SUMMARY
CIT Revolving Credit Facility $ 95,279,975.09
Critical Vendors $ 241,638.48
Shippers $ 416,846.32
Other $ 409,385.94
---------------
TOTAL $ 96,347,845.83
===============
7
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED JULY 16, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING CANADA,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,362 $ 9,138 $ (1,208) $ 271
Trade accounts receivable, net - 43,168 327 3,662
Other Receivables - 1,268 - 4,242
Due from affiliates - 21,298 9,115 20,231
Inventories - 30,554 - -
Prepaid expenses 12 1,390 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,374 106,816 8,234 28,406
Property, plant and equipment, net - 131,928 3,482 -
Deferred income taxes - - - -
Investments-Third Party - 6,262 - -
Investments in Subs 35,060 95,073 - 297,161
Other assets 7,354 26,496 4,762 14,198
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 67,152
Secured Debt Accrued Interest * - 14,176 - 4,201
Revolver - 90,018 - -
Unsecured debt 192,879 297,064 1,144 270,594
Other / Intercompany - 201,020 - 5,016
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - -
Less: Unearned compensation - (458) - -
Redeemable preferred stock 26,541 (15,448) - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 48
Additional paid-in capital (367,555) (229,904) - 83,348
Retained earnings 191,923 (215,396) 15,333 (90,594)
Pension adjustment - (134) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(175,632) (445,362) 15,334 (7,198)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,632) (447,899) 15,334 (7,198)
TOTAL LIABILITIES AND EQUITY $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING PULP STERLING PULP STERLING FIBERS STERLING CHEMICALS
CHEMICALS US, INC. CHEMICALS, INC. INC. INT'L, INC.
ASSETS 01-37811-H4-11 01-37812-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 309 $ 714 $ -
Trade accounts receivable, net 1,035 4,546 4,639 -
Other Receivables - - 37 2,971
Due from affiliates 156 3,077 - -
Inventories 339 1,725 10,983 -
Prepaid expenses - - - (283)
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,530 9,657 16,373 2,688
Property, plant and equipment, net - 45,184 6,407 -
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs 3,199 - - -
Other assets - - 1,828 2,811
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - - 57,221 3,652
Secured Debt Accrued Interest * - - 3,580 228
Revolver - - - -
Unsecured debt 236 62,551 62,331 840
Other / Intercompany - - 14,125 -
Deferred income taxes - -
Common stock held by new ESOP - - 35 -
Less: Unearned compensation - - 458 -
Redeemable preferred stock - - 15,448 -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - - - -
Additional paid-in capital (5,370) 3,199 9,676 -
Retained earnings (877) (10,909) (138,266) 779
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
4,493 (7,710) (128,590) 779
Treasury stock at cost
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 4,493 (7,710) (128,590) 779
TOTAL LIABILITIES AND EQUITY $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 10,586
Trade accounts receivable, net - 57,377
Other Receivables (2,971) 5,547
Due from affiliates (50,909) 2,968
Inventories - 43,601
Prepaid expenses - 1,119
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (53,880) 121,198
Property, plant and equipment, net - 187,001
Deferred income taxes - -
Investments-Third Party - 6,262
Investments in Subs (398,721) 31,772
Other assets (1) 57,448
----------------------------------
TOTAL ASSETS $(452,602) $ 403,681
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (3,808) 18,377
Revolver - 90,018
Unsecured debt (129,602) 758,037
Other / Intercompany (201,020) 19,141
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 26,541
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (57,298) (553,164)
Retained earnings - (248,007)
Pension adjustment - (134)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(57,299) (801,185)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (57,299) (803,722)
TOTAL LIABILITIES AND EQUITY $(452,602) $ 403,681
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
8
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED AUGUST 31, 2001
(IN THOUSANDS)(UNAUDITED)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS US,
HOLDINGS INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,369 $ 2,157 $ -- $ 508 $ --
Trade accounts receivable, net -- 40,055 95 2,445 1,204
Other Receivables -- 3,307 -- 4,260 --
Due from affiliates -- 18,867 11,642 43,376 785
Inventories -- 26,875 -- -- 253
Prepaid expenses 35 2,390 -- -- --
Deferred income tax benefit -- -- -- -- --
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,404 93,651 11,737 50,589 2,242
Property, plant and equipment, net -- 129,048 3,389 -- --
Deferred income taxes -- -- -- -- --
Investments-Third Party -- 6,262 -- -- --
Investments in Subs 35,060 95,073 -- 297,161 3,199
Other assets 7,258 20,622 4,339 7,848 --
----------------------------------------------------------------------------------
TOTAL ASSETS $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2 95,939 2,240 20,216 780
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 67,152 --
Secured Debt Accrued Interest * -- 17,701 -- 5,240 --
Unsecured debt 192,878 277,993 1,351 265,001 231
Other / Intercompany -- 201,020 -- 4,904 --
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 254 -- -- --
Less: Unearned compensation -- (458) -- -- --
Redeemable preferred stock 26,541 (15,203) -- -- --
STOCKHOLDERS' EQUITY: --
Common stock, $.01 par value -- 75 1 48 --
Additional paid-in capital (367,555) (229,904) -- 83,348 5,370
Retained earnings-Filing Date 191,923 (215,396) 15,333 (90,594) (877)
Retained earnings-Post Filing Date (67) (12,538) 540 283 (63)
Pension adjustment -- (135) -- -- --
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- (3) -- -- --
---------------------------------------------------------------------------------
(175,699) (457,901) 15,874 (6,915) 4,430
Treasury stock at cost -- (2,537) -- -- --
---------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,699) (460,438) 15,874 (6,915) 4,430
TOTAL LIABILITIES AND EQUITY $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
=================================================================================
$ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ (79) $ 361 $ -- $ -- $ 4,316
Trade accounts receivable, net 4,177 4,724 -- -- 52,700
Other Receivables 37 -- -- 7,604
Due from affiliates 6,855 2,811 3,094 (83,255) 4,175
Inventories 1,693 8,863 -- -- 37,684
Prepaid expenses -- (283) -- 2,142
Deferred income tax benefit -- -- -- -- --
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,646 16,796 2,811 (83,255) 108,621
Property, plant and equipment, net 44,633 6,352 -- -- 183,422
Deferred income taxes -- -- -- -- --
Investments-Third Party -- -- -- -- 6,262
Investments in Subs -- -- -- (398,721) 31,772
Other assets -- 1,452 2,777 (1) 44,295
--------------------------------------------------------------------------
TOTAL ASSETS $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2,620 3,433 13 (27,514) 97,729
Pre-Petition liabilities:
Notes Payable - Secured * -- 57,221 3,652 (60,873) 295,000
Secured Debt Accrued Interest * -- 4,465 285 (4,750) 22,941
Unsecured debt 62,478 73,333 840 (130,521) 743,584
Other / Intercompany -- -- (201,020) 4,904
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 35 -- -- 289
Less: Unearned compensation -- 458 -- -- --
Redeemable preferred stock -- 15,448 -- -- 26,786
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- -- -- (1) 123
Additional paid-in capital 3,199 9,676 -- (57,298) (553,164)
Retained earnings-Filing Date (10,909) (138,266) 779 -- (248,007)
Retained earnings-Post Filing Date (109) (1,203) 19 -- (13,138)
Pension adjustment -- -- -- -- (135)
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- -- -- -- (3)
--------------------------------------------------------------------------
(7,819) (129,793) 798 (57,299) (814,324)
Treasury stock at cost -- -- -- -- (2,537)
--------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (7,819) (129,793) 798 (57,299) (816,861)
TOTAL LIABILITIES AND EQUITY $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
$ -- $ -- $ -- $ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage
is pushed down to the subsidiaries.
MOR 2 - 3
9
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
FOR THE PERIOD ENDING AUGUST 31, 2001
(IN THOUSANDS)
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS, US, CHEMICALS,
HOLDINGS INC. INC. ENERGY, INC. INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 28,667 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- 48 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- 925 -- -- -- 40
TOTAL TAXES PAYABLE $ -- $ 973 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION -- 41,472 -- -- -- --
ACCRUED INTEREST PAYABLE -- 234 -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- 2,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 22,593 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 95,939 $ 2,240 $ 20,216 $ 780 $ 2,620
====================================================================================================================================
-------------------------------------------------------------
STERLING STERLING
FIBERS CHEMICALS
INC. INT'L, INC. DEBTORS
01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 13 $ (8,105) $ 28,458
ROYALTY AND REVENUE PAYABLE -- -- -- --
NOTES PAYABLE -- -- (19,409) --
TAX PAYABLE: -- -- -- --
Federal Payroll Taxes 5 -- -- 5
State Payroll & Sales 13 -- -- 61
Ad Valorem Taxes -- -- -- --
Other Taxes (Property/franchise) 389 -- -- 1,354
TOTAL TAXES PAYABLE $ 407 $ -- $ -- $ 1,420
SECURED DEBT POST-PETITION -- -- -- 41,472
ACCRUED INTEREST PAYABLE -- -- -- 234
*ACCRUED PROFESSIONAL FEES: -- -- -- 2,000
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- 24,145
2. Lease Operating Expenses/Capital -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 13 $ (27,514) $ 97,729
=====================================================================================================
*Payment Requires Court Approval
MOR-4
10
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 8/31/01
-------
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
----- ----------- ------------- -------------- -------------- -------------- ---------------
0-30 $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
31-60 -- -- -- -- -- --
61-90 -- -- -- -- -- --
91 + -- -- -- -- -- --
TOTAL $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
----- ----------- ------------- -------------- -------------- -------------- ---------------
0-30 $ 42,120 $ 42,120 $ -- $ -- $ -- $ --
31-60 4,151 4,151 -- -- -- --
61-90 1,154 1,154 -- -- -- --
91 + 5,274 5,274 -- -- -- --
TOTAL $ 52,699 $ 52,699 $ -- $ -- $ -- $ --
(1) MOR-5 is presented only on a consolidated debtor basis.
(2) Days aging from due date.
(3) Days aging from invoice due date.
MOR-5
11
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS) CASE NUMBER: See Each Company Below
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STATEMENT OF INCOME (LOSS)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 36,458,061 $ 327,939 $ 1,688,935 $ 595,406
TOTAL COST OF REVENUES -- 38,535,886 327,939 29,600 624,624
GROSS PROFIT $ -- $ (2,077,825) $ -- $ 1,659,335 $ (29,218)
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,772 $ 858,049 $ -- $ 406,973 $ 32,298
Insiders Compensation -- 173,179 -- -- --
Professional Fees -- 2,015,000 -- -- --
Other (attach list) -- 539,842 (539,842) -- --
TOTAL OPERATING EXPENSE $ 1,772 $ 3,586,070 $ (539,842) $ 406,973 $ 32,298
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (1,772) $ (5,663,895) $ 539,842 $ 1,252,362 $ (61,516)
INTEREST EXPENSE (includes amort of debt fees) (6,595) 3,553,595 -- 250,944 --
DEPRECIATION 71,765 3,293,410 -- 718,977 --
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 65,170 $ 6,847,005 $ -- $ 969,921 $ --
=================================================================================================================================
NET INCOME BEFORE TAXES $ (66,942) $ (12,510,900) $ 539,842 $ 282,441 $ (61,516)
INCOME TAXES -- 27,000 -- -- --
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (66,942) $ (12,537,900) $ 539,842 $ 282,441 $ (61,516)
=================================================================================================================================
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 4,044,462 $ 4,472,168 $ 123,655 $ (123,655) $ 47,586,971
TOTAL COST OF REVENUES 1,909,929 4,472,502 -- (123,655) 45,776,825
GROSS PROFIT $ 2,134,533 $ (334) $ 123,655 $ -- $ 1,810,146
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 2,325,050
Insiders Compensation -- -- -- -- 173,179
Professional Fees -- -- -- -- 2,015,000
Other (attach list) -- -- -- -- --
-- --
TOTAL OPERATING EXPENSE $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 4,513,229
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 503,539 $ (209,403) $ 110,646 827,114 (2,703,083)
INTEREST EXPENSE (includes amort of debt fees) -- 921,502 56,498 827,114 5,603,058
DEPRECIATION 612,861 71,658 34,500 -- 4,803,171
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 612,861 $ 993,160 $ 90,998 $ 827,114 $ 10,406,229
==============================================================================================================================
NET INCOME BEFORE TAXES $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,109,312)
INCOME TAXES -- -- -- -- 27,000
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,136,312)
==============================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or frequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
12
CASE NUMBER: SEE EACH COMPANY BELOW
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ 539,842 $ (539,842) $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ 539,842 $ (539,842) $ -- $ --
=================================================================================================================================
STERLING PULP STERLING STERLING
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC. DEBTORS
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ -- $ -- $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
MOR-6 ATTACHMENT
13
CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H4-11
CASH RECEIPTS AND FILING TO
DISBURSEMENTS 8/31/2001(1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DATE
----------------- ------------ ---------- ---------- ---------- ---------- ---------- ----------
1. CASH-BEGINNING OF MONTH -- -- -- -- -- -- --
RECEIPTS:
2. CASH SALES -- -- -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- -- -- --
4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- --
5. SALE OF ASSETS -- -- -- -- -- -- --
6. OTHER (attach list) -- -- -- -- -- -- --
TOTAL RECEIPTS -- -- -- -- -- -- --
(Withdrawal) Contribution by Individual
Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- -- -- --
8. PAYROLL TAXES PAID -- -- -- -- -- -- --
9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- --
10. SECURED/RENTAL/LEASES -- -- -- -- -- -- --
11. UTILITIES -- -- -- -- -- -- --
12. INSURANCE -- -- -- -- -- -- --
13. INVENTORY PURCHASES -- -- -- -- -- -- --
14. VEHICLE EXPENSES -- -- -- -- -- -- --
15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- --
17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- --
18. OTHER (attach list) -- -- -- -- -- -- --
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- -- -- --
19. PROFESSIONAL FEES -- -- -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES
(attach list) -- -- -- -- -- -- --
TOTAL DISBURSEMENTS -- -- -- -- -- -- --
22. NET CASH FLOW -- -- -- -- -- -- --
23. CASH - END OF MONTH (MOR-2) -- -- -- -- -- -- --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
14
CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H4-11
OTHER CASH RECEIPTS AND FILING TO
DISBURSEMENTS: 8/31/2001(1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DATE
----------------------- ------------ ---------- ---------- ---------- ---------- ---------- ----------
6. OTHER RECEIPTS:
Interest Income -- -- -- -- -- -- --
401(k) Plan Refund -- -- -- -- -- -- --
Cobra Insurance Payment -- -- -- -- -- -- --
Miscellaneous -- -- -- -- -- -- --
Emission Credits -- -- -- -- -- -- --
TOTAL OTHER RECEIPTS -- -- -- -- -- -- --
18. OTHER DISBURSEMENTS:
Capital Expenditures -- -- -- -- -- -- --
Interest Payment -- -- -- -- -- -- --
Restricted Cash - Bond Funding -- -- -- -- -- -- --
Pre-petition checks voided in
current period -- -- -- -- -- -- --
TOTAL OTHER DISBURSEMENTS -- -- -- -- -- -- --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
15
CASE NAME: Sterling Chemicals International, Inc. CASE NUMBER: 01-37809-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
------------ ------
BANK BALANCE $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
BEGINNING CASH - PER BOOKS $ --
RECEIPTS --
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL) CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS --
ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Note: Bank statements have not been received in time to complete this report.
Future reports will include reconciliations for the prior month.
MOR-8
16
CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11
PAYMENT TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO
INSIDERS: NAME/POSITION/COMP TYPE (2) 8/31/2001(1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
------------------------------------- ------------ ---------- ---------- ---------- ---------- ---------- ----------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
7. -- -- -- -- -- -- --
8. -- -- -- -- -- -- --
9. -- -- -- -- -- -- --
TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO
NAME/ORDER DATE 8/31/2001(1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
--------------- ------------ ---------- ---------- ---------- ---------- ---------- ----------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01.
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii)
OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES
AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING
AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE
VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS
FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE
DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO
THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH
INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE
REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS
THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON
BEHALF OF ITS EMPLOYEES.
(3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE,
ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE
#01-37806-H4-11.
MOR-9
EX-99.6
8
h90773ex99-6.txt
MONTHLY OPERATING REPORT FOR STERLING CANADA INC
1
EXHIBIT 99.6
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: STERLING CANADA, INC. PETITION DATE: 07/16/01
CASE NUMBER: 01-37810-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2001
MONTH 7/16/01-8/31/01
--------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 1,688,935 $-- $-- $-- $-- $--
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 1,252,362 $-- $-- $-- $-- $--
NET INCOME (LOSS) (MOR-6) $ 282,441 $-- $-- $-- $-- $--
PAYMENTS TO INSIDERS (MOR-9) $ -- $-- $-- $-- $-- $--
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $-- $-- $-- $-- $--
TOTAL DISBURSEMENTS (MOR-7) $22,340,404 $-- $-- $-- $-- $--
***The original of this document MUST BE FILED with the United States Bankruptcy
Court and a COPY MUST BE SENT to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
See attachment 2 DATE
------------------------------
CASUALTY YES (x) NO ( ) 08-01-02
LIABILITY YES (x) NO ( ) 07-01-02
VEHICLE YES (x) NO ( ) 07-01-02
WORKER'S YES (x) NO ( ) 07-01-02
OTHER YES (x) NO ( ) various
ATTORNEY NAME: Jeff Spiers
FIRM: Andrews & Kurth LLP
ADDRESS: 600 Travis
ADDRESS: Suite 4200
CITY, STATE ZIP: Houston, TX 77002
TELEPHONE: 713-220-4103
Are all accounts receivable being collected within terms? NO
Are all post-petition liabilities, including taxes, being paid with terms? YES
Have any pre-petition liabilities been paid? YES If so, describe
See Attachment 3
--------------------------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES
Were any assets disposed of outside the normal course of business? NO
If so, describe
-----------------------------------------------------------------
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization?
A Plan of Reorganization is currently being developed.
--------------------------------------------------------------------------------
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED /s/ PAUL VANDERHOVEN
-------------------------------------------------------
(ORIGINAL SIGNATURE)
TITLE VP Finance, CFO
-------------------------------------------------------
MOR-1
2
CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
PAID
COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH
------------------------------------------------------------------------------------------------------------------------------------
See Attachment 2
MOR-1 ATTACHMENT 2
3
Page 1 of 3
9/14/01
SUMMARY OF COVERAGES
FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 7/1/02
Liability. Zurich US
Ded. $250,000 per accident.
2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/02
Ded. $25,000 per occurrence. Zurich Amer.
3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/02
Excess to $1 Million SIR aggregate. Excess $1,000,000 GL
$2,000,000 AL.
4 Excess Liability $20,000,000 ea. loss and aggregate. Primex, Ltd. 1 year 7/1/02
(Reinsured through
AIG.)
5 Excess Liability $50,000,000 ea. loss and aggregate. Gerling Global 1 year 7/1/02
6 Excess Liability $100,000,000 ea. loss and aggregate. Lloyd's 1 year 7/1/02
Lore
7 Excess Liability $50,000,000 Zurich 1 year 7/1/02
8 Excess Liability $50,000,000 AIG 1 year 7/1/02
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
1 Workers Compensation Total annual $195,653 - Audit at (AFCO) expiration.
remuneration Plus all losses within deductible. Paid
through 10/1/01.
2 Automobile Liability Number of vehicles $92,955 (AFCO) Paid through 10/1/01.
owned and leased
3 Excess Liability Annual revenues and $451,090 Annual - Half on 7/1/01; 1/2 on
Excess to $1 Million SIR remuneration 1/1/02. Paid through 1/1/02.
4 Excess Liability Included Included - Paid through 1/1/02.
5 Excess Liability Flat charge - based $295,000 - Paid through expiration.
on exposures and
risk potential
6 Excess Liability Flat charge - based $241,886 - Paid through expiration.
on exposures and
risk potential
7 Excess Liability Flat charge $109,210 - Paid through expiration.
8 Excess Liability Flat Charge $80,938 - Paid through expiration.
4
Page 2 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
9 Excess Liability $50,000,000 Starr Excess 1 year 7/1/02
10 Marine Terminal Operators $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/02
Liability and Charterer's Ded. $25,000 per occurrence $100,000 Co. thru Marsh London
Legal Liability pollution per occurrence.
11 Excess Marine Liability $24,000,000 excess of MTO, CLL, P&L XL Specialty 1 year 7/1/02
Brockbank & Liberty
Und.
12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/02
Brockbank & N.Y.
Marine Gen. Ins.
13 Property Damage, Business $ Total insured values combined Munich Re: et. al. 1 year 8/1/02
Interruption and Boiler & all-risk. Sublimits: Flood - $100
Machinery mil., Earthquake - $100 mil., $10 mil
extra expense. Ded.: Petrochem
$1,000,000 PD, 10 day - BI. Pulp &
Fibers - $1 mil. PD/BI.
14 Directors & Officers $15,000,000 each loss and each policy National Union 1 year 8/21/02
Liability year. Ded. $1,000,000 Corp. Reimb. Indemnity
15 Excess Directors & Officers $10,000,000 excess of Primary D&O Hartford 1 year 8/21/02
Liability
16 Directors & Officers $10,000,000 XL Specialty Ins. Co. 1 year 8/21/02
Liability
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
9 Excess Liability Flat Charge $62,500 - Paid through expiration.
10 Marine Terminal Operators Based on volume $27,000 (AFCO) Min. premium & deposit.
Liability and Charterer's throughput and no. Paid through 10/1/01.
Legal Liability chartered vessels.
11 Excess Marine Liability Volume thru put & $57,375 - Paid through 10/1/01.
vessels docked.
12 Excess Marine Liability Flat $21,250 - Paid through 10/1/01.
13 Property Damage, Business Property Values - Annual - Financed through AFCO. $4.0M
Interruption and Boiler & PD Income values - (est.) Paid through 10/1/01.
Machinery BI PML, fire
protection
available; many
other factors.
14 Directors & Officers Various $316,000 (15 mos.) Paid through expiration.
Liability
15 Excess Directors & Officers Various $223,700 (15 mos.) Paid through expiration.
Liability
16 Directors & Officers Various $115,000 (15 mos.) Paid through expiration.
Liability
5
Page 3 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
17 Employee Dishonesty & $5,000,000 each Insuring Agreement. Texas Pacific 1 year 10/1/01
Depositor's Forgery Ded. $25,000. Chubb
18 Hull & Machinery and Barge Hull Value (M-25 = $1,500,000) Zurich-American 1 year 7/1/02
Protection & Indemnity Ded. $5,000 per loss. $1,000,000 P&I Insurance Co.
19 Pollution Insurance Section A - $250,000 Section B - Water Quality 1 year 7/1/02
$5,000,000 CERCLA - $5,000,000 Insurance Syndicate
20 Marine and Railroad Cargo $12,000,000 any one vessel $1,000,000 Mutual Marine 1 year Continuing
any one barge $1,000,000 any one rail
ship. $100,000 any one truck
21 Office Contents $1,000,000 Phoenix Assur. 1 year 10/1/01
22 Duty Drawback Bond $1,000,000 Washington 1 year Continuing
International
23 Fiduciary $10,000,000 Ded. $250,000 per National Union 1 year 8/21/02
occurrence
24 Environmental $4,000,000 per loss $8,000,000 ECS (Indian Harbor) 1 year 1/15/02
Impairment Liability aggregate
(Petrochem & Fibers)
25 Closure/Post Closure Bonds - $1,995,222 Combined Underwriters 1 year Continuous
Petrochem Indemnity
NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM
--- ----------------- ------------- --------------
17 Employee Dishonesty & Various $20,000 Paid through 10/1/01.
Depositor's Forgery
18 Hull & Machinery and Hull & Machinery $29,378 (AFCO) Paid through 10/1/01.
Protection & Indemnity values
19 Pollution Insurance Hull gross $4,258 (AFCO) Paid through 10/1/01.
registered tonnage
20 Marine and Railroad Cargo Declared shipment $40,000 Annual Approx. Paid through 10/1/01.
values
21 Office Contents Limit $4,500 - Paid through Expiration.
22 Duty Drawback Bond Limit $2,875 - Paid through 11/17/01.
23 Fiduciary Various $22,000 - Financed through Imperial. Renewal
binder issued. Processing annual payments.
24 Environmental Loss Potential $106,200 - Financed through AFCO. Paid through 1/15/02.
Impairment Liability
(Petrochem & Fibers)
25 Closure/Post Closure Bonds - Estimated $40,610 Paid through 1/1/02.
Petrochem Closure/Post
Closure Costs
ANNUAL TOTAL: $3,459,260 *
*Total fluctuates due to cargo premiums dependence upon volume of CIF export
shipments and annual audits of Worker's Compensation and Marine Terminal
policies.
6
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING PULP CHEMICALS, INC. CASE #01-37812-H4-11
Norfolk Southern Railway $ 62,827.78 Shippers
CSX Transportation $ 8,882.00 Shippers
Albany Scale Co. $ 4,096.75 Critical Vendor
Davidson Transport $ 5,797.49 Shippers
---------------
TOTAL $ 81,604.02
===============
STERLING PULP US, INC. CASE #01-37811-H4-11
Canada Customs & Revenue Agency $ 1,840.45
===============
STERLING FIBERS, INC. CASE #01-37808-H4-11
Crocker Technical Papers $ 77,244.52 Critical Vendor
Direct Line Commodities $ 18,530.10 Critical Vendor
Celedon Trucking Services $ 20,986.49 Shippers
Mini Fibers, Inc. $ 127,665.67 Critical Vendor
DeRijke $ 12,129.02
Engineered Fibers Tech (EFT) $ 14,101.44 Critical Vendor
CSX Transportation $ 14,411.88 Shippers
Shaskikumar Daftary $ 238.97 Independent contractor
Charlie Hummel $ 2,160.00 Independent contractor
Ceridian Employer Services $ 246.67 Payroll/Benefit Admin payroll service provider
A Agrawal $ 2,522.32 Payroll/Benefit Admin (expense reimbursement)
H Chever $ 521.80 Payroll/Benefit Admin (expense reimbursement)
NDCunningham $ 390.00 Shippers
Affliated Brokers $ 97.04 Shippers
J Hagerott $ 1,757.02 Payroll/Benefit Admin (expense reimbursement)
B Montz $ 752.79 Payroll/Benefit Admin (expense reimbursement)
---------------
TOTAL $ 293,755.73
===============
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
Aubrey Cannon $ 325.58 Payroll/Benefit Admin (expense reimbursement)
Charles Cannon $ 16.38 Payroll/Benefit Admin (expense reimbursement)
Karol Cripps $ 45.00 Payroll/Benefit Admin (expense reimbursement)
Greg Escamilla $ 80.25 Payroll/Benefit Admin (expense reimbursement)
Gene Kenyon $ 1,327.42 Payroll/Benefit Admin (expense reimbursement)
Dennis Kos $ 324.78 Payroll/Benefit Admin (expense reimbursement)
Wes Noel $ 62.10 Payroll/Benefit Admin (expense reimbursement)
Jack Pollock $ 45.72 Payroll/Benefit Admin (expense reimbursement)
---------------
Total Employee Exp. Reimbursements $ 2,227.23
---------------
Blue Cross & Blue Shield of Florida $ 170,716.53 payroll/benefit admin
Crawford & Company $ 1,819.85 Workers Comp
AFCO $ 10,220.80 Insurance Coverage
Bayport Occupational Med $ 11,812.00 Independent Contractor
BNSF Railroad $ 157,944.95 Shippers
Ceridian $ 1,277.29 payroll/benefit admin
Federal Express $ 1,502.71 Shippers
Imperial Premium Finance $ 10,584.23 Insurance Coverage
Jeil Marine $ 26,629.16 Shippers
Prescription Solutions $ 178,558.97 payroll/benefit admin
Union Pacific Railroad $ 48,700.00 Shippers
Woolim Shipping $ 68,676.82 Shippers
---------------
Total Vendor Payments $ 688,443.31
---------------
CIT Revolving Credit Facility $ 95,279,975.09
---------------
TOTAL $ 95,970,645.63
===============
---------------
TOTAL DEBTOR PREFILE LIAB. PAID $ 96,347,845.83
---------------
SUMMARY
CIT Revolving Credit Facility $ 95,279,975.09
Critical Vendors $ 241,638.48
Shippers $ 416,846.32
Other $ 409,385.94
---------------
TOTAL $ 96,347,845.83
===============
7
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED JULY 16, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING CANADA,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,362 $ 9,138 $ (1,208) $ 271
Trade accounts receivable, net - 43,168 327 3,662
Other Receivables - 1,268 - 4,242
Due from affiliates - 21,298 9,115 20,231
Inventories - 30,554 - -
Prepaid expenses 12 1,390 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,374 106,816 8,234 28,406
Property, plant and equipment, net - 131,928 3,482 -
Deferred income taxes - - - -
Investments-Third Party - 6,262 - -
Investments in Subs 35,060 95,073 - 297,161
Other assets 7,354 26,496 4,762 14,198
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 67,152
Secured Debt Accrued Interest * - 14,176 - 4,201
Revolver - 90,018 - -
Unsecured debt 192,879 297,064 1,144 270,594
Other / Intercompany - 201,020 - 5,016
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - -
Less: Unearned compensation - (458) - -
Redeemable preferred stock 26,541 (15,448) - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 48
Additional paid-in capital (367,555) (229,904) - 83,348
Retained earnings 191,923 (215,396) 15,333 (90,594)
Pension adjustment - (134) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(175,632) (445,362) 15,334 (7,198)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,632) (447,899) 15,334 (7,198)
TOTAL LIABILITIES AND EQUITY $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING PULP STERLING PULP STERLING FIBERS STERLING CHEMICALS
CHEMICALS US, INC. CHEMICALS, INC. INC. INT'L, INC.
ASSETS 01-37811-H4-11 01-37812-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 309 $ 714 $ -
Trade accounts receivable, net 1,035 4,546 4,639 -
Other Receivables - - 37 2,971
Due from affiliates 156 3,077 - -
Inventories 339 1,725 10,983 -
Prepaid expenses - - - (283)
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,530 9,657 16,373 2,688
Property, plant and equipment, net - 45,184 6,407 -
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs 3,199 - - -
Other assets - - 1,828 2,811
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - - 57,221 3,652
Secured Debt Accrued Interest * - - 3,580 228
Revolver - - - -
Unsecured debt 236 62,551 62,331 840
Other / Intercompany - - 14,125 -
Deferred income taxes - -
Common stock held by new ESOP - - 35 -
Less: Unearned compensation - - 458 -
Redeemable preferred stock - - 15,448 -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - - - -
Additional paid-in capital (5,370) 3,199 9,676 -
Retained earnings (877) (10,909) (138,266) 779
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
4,493 (7,710) (128,590) 779
Treasury stock at cost
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 4,493 (7,710) (128,590) 779
TOTAL LIABILITIES AND EQUITY $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 10,586
Trade accounts receivable, net - 57,377
Other Receivables (2,971) 5,547
Due from affiliates (50,909) 2,968
Inventories - 43,601
Prepaid expenses - 1,119
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (53,880) 121,198
Property, plant and equipment, net - 187,001
Deferred income taxes - -
Investments-Third Party - 6,262
Investments in Subs (398,721) 31,772
Other assets (1) 57,448
----------------------------------
TOTAL ASSETS $(452,602) $ 403,681
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (3,808) 18,377
Revolver - 90,018
Unsecured debt (129,602) 758,037
Other / Intercompany (201,020) 19,141
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 26,541
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (57,298) (553,164)
Retained earnings - (248,007)
Pension adjustment - (134)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(57,299) (801,185)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (57,299) (803,722)
TOTAL LIABILITIES AND EQUITY $(452,602) $ 403,681
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
8
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED AUGUST 31, 2001
(IN THOUSANDS)(UNAUDITED)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS US,
HOLDINGS INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,369 $ 2,157 $ -- $ 508 $ --
Trade accounts receivable, net -- 40,055 95 2,445 1,204
Other Receivables -- 3,307 -- 4,260 --
Due from affiliates -- 18,867 11,642 43,376 785
Inventories -- 26,875 -- -- 253
Prepaid expenses 35 2,390 -- -- --
Deferred income tax benefit -- -- -- -- --
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,404 93,651 11,737 50,589 2,242
Property, plant and equipment, net -- 129,048 3,389 -- --
Deferred income taxes -- -- -- -- --
Investments-Third Party -- 6,262 -- -- --
Investments in Subs 35,060 95,073 -- 297,161 3,199
Other assets 7,258 20,622 4,339 7,848 --
----------------------------------------------------------------------------------
TOTAL ASSETS $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2 95,939 2,240 20,216 780
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 67,152 --
Secured Debt Accrued Interest * -- 17,701 -- 5,240 --
Unsecured debt 192,878 277,993 1,351 265,001 231
Other / Intercompany -- 201,020 -- 4,904 --
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 254 -- -- --
Less: Unearned compensation -- (458) -- -- --
Redeemable preferred stock 26,541 (15,203) -- -- --
STOCKHOLDERS' EQUITY: --
Common stock, $.01 par value -- 75 1 48 --
Additional paid-in capital (367,555) (229,904) -- 83,348 5,370
Retained earnings-Filing Date 191,923 (215,396) 15,333 (90,594) (877)
Retained earnings-Post Filing Date (67) (12,538) 540 283 (63)
Pension adjustment -- (135) -- -- --
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- (3) -- -- --
---------------------------------------------------------------------------------
(175,699) (457,901) 15,874 (6,915) 4,430
Treasury stock at cost -- (2,537) -- -- --
---------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,699) (460,438) 15,874 (6,915) 4,430
TOTAL LIABILITIES AND EQUITY $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
=================================================================================
$ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ (79) $ 361 $ -- $ -- $ 4,316
Trade accounts receivable, net 4,177 4,724 -- -- 52,700
Other Receivables 37 -- -- 7,604
Due from affiliates 6,855 2,811 3,094 (83,255) 4,175
Inventories 1,693 8,863 -- -- 37,684
Prepaid expenses -- (283) -- 2,142
Deferred income tax benefit -- -- -- -- --
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,646 16,796 2,811 (83,255) 108,621
Property, plant and equipment, net 44,633 6,352 -- -- 183,422
Deferred income taxes -- -- -- -- --
Investments-Third Party -- -- -- -- 6,262
Investments in Subs -- -- -- (398,721) 31,772
Other assets -- 1,452 2,777 (1) 44,295
--------------------------------------------------------------------------
TOTAL ASSETS $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2,620 3,433 13 (27,514) 97,729
Pre-Petition liabilities:
Notes Payable - Secured * -- 57,221 3,652 (60,873) 295,000
Secured Debt Accrued Interest * -- 4,465 285 (4,750) 22,941
Unsecured debt 62,478 73,333 840 (130,521) 743,584
Other / Intercompany -- -- (201,020) 4,904
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 35 -- -- 289
Less: Unearned compensation -- 458 -- -- --
Redeemable preferred stock -- 15,448 -- -- 26,786
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- -- -- (1) 123
Additional paid-in capital 3,199 9,676 -- (57,298) (553,164)
Retained earnings-Filing Date (10,909) (138,266) 779 -- (248,007)
Retained earnings-Post Filing Date (109) (1,203) 19 -- (13,138)
Pension adjustment -- -- -- -- (135)
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- -- -- -- (3)
--------------------------------------------------------------------------
(7,819) (129,793) 798 (57,299) (814,324)
Treasury stock at cost -- -- -- -- (2,537)
--------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (7,819) (129,793) 798 (57,299) (816,861)
TOTAL LIABILITIES AND EQUITY $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
$ -- $ -- $ -- $ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage
is pushed down to the subsidiaries.
MOR 2 - 3
9
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
FOR THE PERIOD ENDING AUGUST 31, 2001
(IN THOUSANDS)
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS, US, CHEMICALS,
HOLDINGS INC. INC. ENERGY, INC. INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 28,667 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- 48 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- 925 -- -- -- 40
TOTAL TAXES PAYABLE $ -- $ 973 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION -- 41,472 -- -- -- --
ACCRUED INTEREST PAYABLE -- 234 -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- 2,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 22,593 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 95,939 $ 2,240 $ 20,216 $ 780 $ 2,620
====================================================================================================================================
-------------------------------------------------------------
STERLING STERLING
FIBERS CHEMICALS
INC. INT'L, INC. DEBTORS
01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 13 $ (8,105) $ 28,458
ROYALTY AND REVENUE PAYABLE -- -- -- --
NOTES PAYABLE -- -- (19,409) --
TAX PAYABLE: -- -- -- --
Federal Payroll Taxes 5 -- -- 5
State Payroll & Sales 13 -- -- 61
Ad Valorem Taxes -- -- -- --
Other Taxes (Property/franchise) 389 -- -- 1,354
TOTAL TAXES PAYABLE $ 407 $ -- $ -- $ 1,420
SECURED DEBT POST-PETITION -- -- -- 41,472
ACCRUED INTEREST PAYABLE -- -- -- 234
*ACCRUED PROFESSIONAL FEES: -- -- -- 2,000
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- 24,145
2. Lease Operating Expenses/Capital -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 13 $ (27,514) $ 97,729
=====================================================================================================
*Payment Requires Court Approval
MOR-4
10
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 8/31/01
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
------------------------------------------------------------------------------------------------------------------------------------
0-30 $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
31-60 -- -- -- -- -- --
61-90 -- -- -- -- -- --
91 + -- -- -- -- -- --
TOTAL $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
------------------------------------------------------------------------------------------------------------------------------
0-30 $ 42,120 $ 42,120 $ -- $ -- $ -- $ --
31-60 4,151 4,151 -- -- --
61-90 1,154 1,154 -- -- --
91 + 5,274 5,274 -- -- --
TOTAL $ 52,699 $ 52,699 $ -- $ -- $ -- $ --
(1) MOR-5 is presented only on a consolidated debtor basis.
(2) Days aging from due date.
(3) Days aging from invoice due date.
MOR-5
11
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS) CASE NUMBER: See Each Company Below
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STATEMENT OF INCOME (LOSS)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 36,458,061 $ 327,939 $ 1,688,935 $ 595,406
TOTAL COST OF REVENUES -- 38,535,886 327,939 29,600 624,624
GROSS PROFIT $ -- $ (2,077,825) $ -- $ 1,659,335 $ (29,218)
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,772 $ 858,049 $ -- $ 406,973 $ 32,298
Insiders Compensation -- 173,179 -- -- --
Professional Fees -- 2,015,000 -- -- --
Other (attach list) -- 539,842 (539,842) -- --
TOTAL OPERATING EXPENSE $ 1,772 $ 3,586,070 $ (539,842) $ 406,973 $ 32,298
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (1,772) $ (5,663,895) $ 539,842 $ 1,252,362 $ (61,516)
INTEREST EXPENSE (includes amort of debt fees) (6,595) 3,553,595 -- 250,944 --
DEPRECIATION 71,765 3,293,410 -- 718,977 --
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 65,170 $ 6,847,005 $ -- $ 969,921 $ --
=================================================================================================================================
NET INCOME BEFORE TAXES $ (66,942) $ (12,510,900) $ 539,842 $ 282,441 $ (61,516)
INCOME TAXES -- 27,000 -- -- --
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (66,942) $ (12,537,900) $ 539,842 $ 282,441 $ (61,516)
=================================================================================================================================
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 4,044,462 $ 4,472,168 $ 123,655 $ (123,655) $ 47,586,971
TOTAL COST OF REVENUES 1,909,929 4,472,502 -- (123,655) 45,776,825
GROSS PROFIT $ 2,134,533 $ (334) $ 123,655 $ -- $ 1,810,146
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 2,325,050
Insiders Compensation -- -- -- -- 173,179
Professional Fees -- -- -- -- 2,015,000
Other (attach list) -- -- -- -- --
-- --
TOTAL OPERATING EXPENSE $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 4,513,229
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 503,539 $ (209,403) $ 110,646 827,114 (2,703,083)
INTEREST EXPENSE (includes amort of debt fees) -- 921,502 56,498 827,114 5,603,058
DEPRECIATION 612,861 71,658 34,500 -- 4,803,171
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 612,861 $ 993,160 $ 90,998 $ 827,114 $ 10,406,229
==============================================================================================================================
NET INCOME BEFORE TAXES $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,109,312)
INCOME TAXES -- -- -- -- 27,000
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,136,312)
==============================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or frequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
12
CASE NUMBER: SEE EACH COMPANY BELOW
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ 539,842 $ (539,842) $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ 539,842 $ (539,842) $ -- $ --
=================================================================================================================================
STERLING PULP STERLING STERLING
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC. DEBTORS
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ -- $ -- $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
MOR-6 ATTACHMENT
13
CASE NAME: STERLING CANADA INC. CASE NUMBER: 01-37810-H4-11
CASH RECEIPTS AND MONTH MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS 8/31/2001(1) DATE
------------------------------------------------------------------------------------------------------------------------------------
1. CASH-BEGINNING OF MONTH $ 271,082 $ -- $ -- $ -- $ -- $ 271,082
RECEIPTS:
2. CASH SALES $ -- $ -- $ -- $ -- $ -- $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 2,837,627 2,837,627
4. LOANS & ADVANCES (attach list) --
5. SALE OF ASSETS --
6. OTHER (attach list) 19,739,210 19,739,210
TOTAL RECEIPTS $ 22,576,837 $ -- $ -- $ -- $ -- $ 22,576,837
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A
DISBURSEMENTS:
7. NET PAYROLL $ -- $ -- $ -- $ -- $ -- $ --
8. PAYROLL TAXES PAID --
9. SALES, USE & OTHER TAXES PAID 1,840 1,840
10. SECURED/RENTAL/LEASES --
11. UTILITIES --
12. INSURANCE --
13. INVENTORY PURCHASES --
14. VEHICLE EXPENSES --
15. TRAVEL & ENTERTAINMENT --
16. REPAIRS, MAINTENANCE & SUPPLIES --
17. ADMINISTRATIVE & SELLING 21,145 21,145
18. OTHER (attach list) 22,317,418 22,317,418
TOTAL DISBURSEMENTS FROM OPERATIONS $ 22,340,404 $ -- $ -- $ -- $ -- $ 22,340,404
19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- $ --
20. U.S. TRUSTEE FEES -- -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --
TOTAL DISBURSEMENTS $ 22,340,404 $ -- $ -- $ -- $ -- $ 22,340,404
22. NET CASH FLOW $ 236,433 $ -- $ -- $ -- $ -- $ 236,433
23. CASH-- END OF MONTH (MOR-2) $ 507,515 $ -- $ -- $ -- $ -- $ 507,515
(1) Represents the period 7/17/01 through 8/31/01.
MOR-7 *Applies to Individual debtor's only.
14
CASE NAME: STERLING CANADA INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND MONTH MONTH MONTH MONTH MONTH FILING TO
DISBURSEMENTS: 8/31/2001 (1) DATE
-----------------------------------------------------------------------------------------------------------------------------
6. OTHER RECEIPTS:
Interest Income $ 1,107 $ 1,107
401(k) Plan Refund --
Cobra Insurance Payment --
Miscellaneous --
Emission Credits --
Loan Advance from a subsidiary-- Sterling NRO 19,409,155 19,409,155
Funds belonging to Sterling Pulp Chemicals Ltd. --
rec'd in error and to be returned in Sep 01. 328,947 328,947
--
--
TOTAL OTHER RECEIPTS $ 19,739,210 $ -- $ -- $ -- $ -- $ 19,739,210
18. OTHER DISBURSEMENTS:
Workover Expense --
Capital Expenditures --
Interest Payment --
Pre-petition checks voided in current period --
Advance to Parent company-- Sterling Chemicals 22,317,418 -- 22,317,418
--
--
--
TOTAL OTHER DISBURSEMENTS $ 22,317,418 $ -- -- $ -- $ -- $ 22,317,418
(1)Represents the period 7/17/01 through 8/31/01.
MOR-7 ATTACHMENT
15
CASE NAME: Sterling Canada, Inc. CASE NUMBER: 01-37810-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
------------ -----
BANK BALANCE $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
BEGINNING CASH - PER BOOKS $ --
RECEIPTS --
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL)CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS --
ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Note: Bank statements have not been received in time to complete this report.
Future reports will include reconciliations for the prior month.
MOR-8
16
CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
PAYMENT TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g.,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
INSIDERS: NAME/POSITION 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO
/COMP TYPE (2) DATE
------------------------------------------------------------------------------------------------------------------------------------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
7. -- -- -- -- -- -- --
8. -- -- -- -- -- -- --
9. -- -- -- -- -- -- --
TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO
NAME/ORDER DATE DATE
------------------------------------------------------------------------------------------------------------------------------------
1. $ -- $ -- $ -- $ -- $ -- $ -- $ --
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01.
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii)
OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES
AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING
AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE
VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS
FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE
DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO
THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH
INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE
REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS
THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON
BEHALF OF ITS EMPLOYEES.
(3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE,
ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE
#01-37806-H4-11.
MOR-9
EX-99.7
9
h90773ex99-7.txt
MONTHLY OPERATING REPORT FOR STERLING PULP CHEM US
1
EXHIBIT 99.7
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: STERLING PULP CHEMICALS US, INC. PETITION DATE: 07/16/01
CASE NUMBER: 01-37811-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2001
MONTH 7/16/01-8/31/01
-----------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 595,406 $ - $ - $ - $ - $ -
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (61,516) $ - $ - $ - $ - $ -
NET INCOME (LOSS) (MOR-6) $ (61,516) $ - $ - $ - $ - $ -
PAYMENTS TO INSIDERS (MOR-9) $ - $ - $ - $ - $ - $ -
PAYMENTS TO PROFESSIONALS (MOR-9) $ - $ - $ - $ - $ - $ -
TOTAL DISBURSEMENTS (MOR-7) $ - $ - $ - $ - $ - $ -
***The original of this document MUST BE FILED with the United States Bankruptcy
Court and a COPY MUST BE SENT to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
See attachment 2 DATE
-----------------------------------
CASUALTY YES ( x) NO ( ) 08-01-02
LIABILITY YES ( x) NO ( ) 07-01-02
VEHICLE YES ( x) NO ( ) 07-01-02
WORKER'S YES ( x) NO ( ) 07-01-02
OTHER YES ( x) NO ( ) various
ATTORNEY NAME: Jeff Spiers
FIRM: Andrews & Kurth LLP
ADDRESS: 600 Travis
ADDRESS: Suite 4200
CITY, STATE ZIP: Houston, TX 77002
TELEPHONE: 713-220-4103
Are all accounts receivable being collected within terms? NO
Are all post-petition liabilities, including taxes, being paid with terms? YES
Have any pre-petition liabilities been paid? YES If so, describe
See Attachment 3
--------------------------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES
Were any assets disposed of outside the normal course of business? NO
If so, describe
-----------------------------------------------------------------
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization?
A Plan of Reorganization is currently being developed.
--------------------------------------------------------------------------------
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED /s/ PAUL VANDERHOVEN
---------------------------------------------------
(ORIGINAL SIGNATURE)
TITLE VP Finance, CFO
---------------------------------------------------
MOR-1
2
CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
PAID
COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH
------------------------------------------------------------------------------------------------------------------------------------
See Attachment 2
MOR-1 ATTACHMENT 2
3
Page 1 of 3
9/14/01
SUMMARY OF COVERAGES
FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 07/01/2002 Total annual
Liability. Zurich US remuneration
Ded. $250,000 per accident.
2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 07/01/2002 Number of vehicles
Ded. $25,000 per occurrence. Zurich Amer. owned and leased
3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 07/01/2002 Annual revenues and
Excess to $1 Million SIR aggregate. Excess $1,000,000 GL remuneration
$2,000,000 AL.
4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 07/01/2002 Included
aggregate. (Reinsured through
AIG.)
5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 07/01/2002 Flat charge - based
aggregate. on exposures and
risk potential
6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 07/01/2002 Flat charge - based
aggregate. Lore on exposures and
risk potential
7 Excess Liability $50,000,000 Zurich 1 year 07/01/2002 Flat charge
8 Excess Liability $50,000,000 AIG 1 year 07/01/2002 Flat Charge
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
1 Workers Compensation $195,653 - Audit at (AFCO) expiration.
Plus all losses within deductible. Paid through 10/1/01.
2 Automobile Liability $92,955 (AFCO) Paid through 10/1/01.
3 Excess Liability $451,090 Annual - Half on 7/1/01; 1/2
Excess to $1 Million SIR on 1/1/02. Paid through 1/1/02.
4 Excess Liability Included - Paid through 1/1/02.
5 Excess Liability $295,000 - Paid through expiration.
6 Excess Liability $241,886 - Paid through expiration.
7 Excess Liability $109,210 - Paid through expiration.
8 Excess Liability $80,938 - Paid through expiration.
4
Page 2 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
9 Excess Liability $50,000,000 Starr Excess 1 year 07/01/2002 Flat Charge
10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire 1 year 07/01/2002 Based on volume
Operators Liability and Ded. $25,000 per occurrence Ins. Co. thru Marsh throughput and no.
Charterer's Legal Liability $100,000 pollution per occurrence. London chartered vessels.
11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 07/01/2002 Volume thru put &
P&L Brockbank & vessels docked.
Liberty Und.
12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 07/01/2002 Flat
Brockbank & N.Y.
Marine Gen. Ins.
13 Property Damage, $ Total insured values combined all Munich Re: et. al. 1 year 08/01/2002 Property Values - PD
Business Interruption and -risk. Sublimits: Flood - $100 mil., Income values - BI
Boiler & Machinery Earthquake - $100 mil., $10 mil PML, fire protection
extra expenses. Ded.: Petrochem available; many other
$1,000,000 PD, 10 day - BL Pulp & factors.
Fibers - $1 mil. PD/BI.
14 Directors & Officers $15,000,000 each loss and each National Union 1 year 08/21/2002 Various
Liability policy year. Ded. $1,000,000 Corp. Indemnity
15 Excess Directors & Officers $10,000,000 excess of Primary Hartford 1 year 08/21/2002 Various
Liability D&O
16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 08/21/2002 Various
Liability Co.
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
9 Excess Liability $62,500 - Paid through expiration.
10 Marine Terminal $27,000 (AFCO) Min. premium &
Operators Liability and deposit. Paid through 10/1/01.
Charterer's Legal Liability
11 Excess Marine Liability $57,375 - Paid through 10/1/01.
12 Excess Marine Liability $21,250 - Paid through 10/1/01.
13 Property Damage, Annual - Financed through AFCO.
Business Interruption and $4.0M (est.) Paid through 10/1/01.
Boiler & Machinery
14 Directors & Officers $316,000 (15 mos.) Paid through expiration.
Liability
15 Excess Directors & Officers $223,700 (15 mos.) Paid through expiration.
Liability
16 Directors & Officers $115,000 (15 mos.) Paid through expiration.
Liability
5
Page 3 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/01/2001 Various
Depositor's Forgery Agreement. Ded. $25,000. Chubb
18 Hull & Machinery and Barge Hull Value Zurich-American 1 year 07/01/2002 Hull & Machinery
Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values
Ded. $5,000 per loss.
$1,000,000 P&I
19 Pollution Insurance Section A - $250,000 Water Quality 1 year 07/01/2002 Hull gross registered
Section B - $5,000,000 Insurance tonnage
SCERCLA - $5,000,000 Syndicate
20 Marine and Railroad $12,000,000 any one vessel Mutual Marine 1 year Continuing Declared shipment
Cargo $1,000,000 any one barge values
$1,000,000 and one rail ship.
$100,000 any one truck
21 Office Contents $1,000,000 Phoenix Assur. 1 year 10/01/2001 Limit
22 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
23 Fiduciary $10,000,000 National Union 1 year 08/21/2002 Various
Ded. $250,000 per occurrence
24 Environmental $4,000,000 per loss ECS 1 year 01/15/2002 Loss Potential
Impairment Liability $8,000,000 aggregate (Indian Harbor)
(Petrochem & Fibers)
25 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated
Bonds - Petrochem Indemnity Closure/Post Closure
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
17 Employee Dishonesty & $20,000 Paid through 10/1/01.
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO) Paid through 10/1/01.
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO) Paid through 10/1/01.
20 Marine and Railroad $40,000 Annual Approx. Paid through 10/1/01.
Cargo
21 Office Contents $4,500 - Paid through expiration.
22 Duty Drawback Bond $2,875 - Paid through 11/17/01.
23 Fiduciary $22,000 - Financed through Imperial. Renewal binder issued.
Processing annual payment.
24 Environmental $106,200 - Financed through AFCO. Paid through 1/15/02.
Impairment Liability
(Petrochem & Fibers)
25 Closure/Post Closure $40,610 - Paid through 1/1/02.
Bonds - Petrochem
ANNUAL TOTAL: $3,459,260 *
*Total fluctuates due to cargo premiums dependence upon volume of CIF export
shipments and annual audits of Worker's Compensation and Marine Terminal
policies.
6
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING PULP CHEMICALS, INC. CASE #01-37812-H4-11
---------------------------------------------------
Norfolk Southern Railway $ 62,827.78 Shippers
CSX Transportation $ 8,882.00 Shippers
Albany Scale Co. $ 4,096.75 Critical Vendor
Davidson Transport $ 5,797.49 Shippers
---------------
TOTAL $ 81,604.02
===============
STERLING PULP US, INC. CASE #01-37811-H4-11
------------------------------------------- ---------------
Canada Customs & Revenue Agency $ 1,840.45
===============
STERLING FIBERS, INC. CASE #01-37808-H4-11
------------------------------------------
Crocker Technical Papers $ 77,244.52 Critical Vendor
Direct Line Commodities $ 18,530.10 Critical Vendor
Celedon Trucking Services $ 20,986.49 Shippers
Mini Fibers, Inc. $ 127,665.67 Critical Vendor
DeRijke $ 12,129.02
Engineered Fibers Tech (EFT) $ 14,101.44 Critical Vendor
CSX Transportation $ 14,411.88 Shippers
Shaskikumar Daftary $ 238.97 Independent contractor
Charlie Hummel $ 2,160.00 Independent contractor
Ceridian Employer Services $ 246.67 Payroll/Benefit Admin payroll service provider
A Agrawal $ 2,522.32 Payroll/Benefit Admin (expense reimbursement)
H Chever $ 521.80 Payroll/Benefit Admin (expense reimbursement)
NDCunningham $ 390.00 Shippers
Affiliated Brokers $ 97.04 Shippers
J Hagerott $ 1,757.02 Payroll/Benefit Admin (expense reimbursement)
B Montz $ 752.79 Payroll/Benefit Admin (expense reimbursement)
---------------
TOTAL $ 293,755.73
===============
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
---------------------------------------------
Aubrey Cannon $ 325.58 Payroll/Benefit Admin (expense reimbursement)
Charles Cannon $ 16.38 Payroll/Benefit Admin (expense reimbursement)
Karol Cripps $ 45.00 Payroll/Benefit Admin (expense reimbursement)
Greg Escamilla $ 80.25 Payroll/Benefit Admin (expense reimbursement)
Gene Kenyon $ 1,327.42 Payroll/Benefit Admin (expense reimbursement)
Dennis Kos $ 324.78 Payroll/Benefit Admin (expense reimbursement)
Wes Noel $ 62.10 Payroll/Benefit Admin (expense reimbursement)
Jack Pollock $ 45.72 Payroll/Benefit Admin (expense reimbursement)
---------------
Total Employee Exp. Reimbursements $ 2,227.23
---------------
Blue Cross & Blue Shield of Florida $ 170,716.53 payroll/benefit admin
Crawford & Company $ 1,819.85 Workers Comp
AFCO $ 10,220.80 Insurance Coverage
Bayport Occupational Med $ 11,812.00 Independent Contractor
BNSF Railroad $ 157,944.95 Shippers
Ceridian $ 1,277.29 payroll/benefit admin
Federal Express $ 1,502.71 Shippers
Imperial Premium Finance $ 10,584.23 Insurance Coverage
Jeil Marine $ 26,629.16 Shippers
Prescription Solutions $ 178,558.97 payroll/benefit admin
Union Pacific Railroad $ 48,700.00 Shippers
Woolim Shipping $ 68,676.82 Shippers
---------------
Total Vendor Payments $ 688,443.31
---------------
CIT Revolving Credit Facility $ 95,279,975.09
---------------
TOTAL $ 95,970,645.63
===============
---------------
TOTAL DEBTOR PREFILE LIAB. PAID $ 96,347,845.83
---------------
SUMMARY
CIT Revolving Credit Facility $ 95,279,975.09
Critical Vendors $ 241,638.48
Shippers $ 416,846.32
Other $ 409,385.94
---------------
TOTAL $ 96,347,845.83
===============
7
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED JULY 16, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING CANADA,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,362 $ 9,138 $ (1,208) $ 271
Trade accounts receivable, net - 43,168 327 3,662
Other Receivables - 1,268 - 4,242
Due from affiliates - 21,298 9,115 20,231
Inventories - 30,554 - -
Prepaid expenses 12 1,390 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,374 106,816 8,234 28,406
Property, plant and equipment, net - 131,928 3,482 -
Deferred income taxes - - - -
Investments-Third Party - 6,262 - -
Investments in Subs 35,060 95,073 - 297,161
Other assets 7,354 26,496 4,762 14,198
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 67,152
Secured Debt Accrued Interest * - 14,176 - 4,201
Revolver - 90,018 - -
Unsecured debt 192,879 297,064 1,144 270,594
Other / Intercompany - 201,020 - 5,016
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - -
Less: Unearned compensation - (458) - -
Redeemable preferred stock 26,541 (15,448) - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 48
Additional paid-in capital (367,555) (229,904) - 83,348
Retained earnings 191,923 (215,396) 15,333 (90,594)
Pension adjustment - (134) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(175,632) (445,362) 15,334 (7,198)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,632) (447,899) 15,334 (7,198)
TOTAL LIABILITIES AND EQUITY $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING PULP STERLING PULP STERLING FIBERS STERLING CHEMICALS
CHEMICALS US, INC. CHEMICALS, INC. INC. INT'L, INC.
ASSETS 01-37811-H4-11 01-37812-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 309 $ 714 $ -
Trade accounts receivable, net 1,035 4,546 4,639 -
Other Receivables - - 37 2,971
Due from affiliates 156 3,077 - -
Inventories 339 1,725 10,983 -
Prepaid expenses - - - (283)
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,530 9,657 16,373 2,688
Property, plant and equipment, net - 45,184 6,407 -
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs 3,199 - - -
Other assets - - 1,828 2,811
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - - 57,221 3,652
Secured Debt Accrued Interest * - - 3,580 228
Revolver - - - -
Unsecured debt 236 62,551 62,331 840
Other / Intercompany - - 14,125 -
Deferred income taxes - -
Common stock held by new ESOP - - 35 -
Less: Unearned compensation - - 458 -
Redeemable preferred stock - - 15,448 -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - - - -
Additional paid-in capital (5,370) 3,199 9,676 -
Retained earnings (877) (10,909) (138,266) 779
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
4,493 (7,710) (128,590) 779
Treasury stock at cost
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 4,493 (7,710) (128,590) 779
TOTAL LIABILITIES AND EQUITY $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 10,586
Trade accounts receivable, net - 57,377
Other Receivables (2,971) 5,547
Due from affiliates (50,909) 2,968
Inventories - 43,601
Prepaid expenses - 1,119
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (53,880) 121,198
Property, plant and equipment, net - 187,001
Deferred income taxes - -
Investments-Third Party - 6,262
Investments in Subs (398,721) 31,772
Other assets (1) 57,448
----------------------------------
TOTAL ASSETS $(452,602) $ 403,681
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (3,808) 18,377
Revolver - 90,018
Unsecured debt (129,602) 758,037
Other / Intercompany (201,020) 19,141
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 26,541
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (57,298) (553,164)
Retained earnings - (248,007)
Pension adjustment - (134)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(57,299) (801,185)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (57,299) (803,722)
TOTAL LIABILITIES AND EQUITY $(452,602) $ 403,681
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
8
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED AUGUST 31, 2001
(IN THOUSANDS)(UNAUDITED)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS US,
HOLDINGS INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,369 $ 2,157 $ -- $ 508 $ --
Trade accounts receivable, net -- 40,055 95 2,445 1,204
Other Receivables -- 3,307 -- 4,260 --
Due from affiliates -- 18,867 11,642 43,376 785
Inventories -- 26,875 -- -- 253
Prepaid expenses 35 2,390 -- -- --
Deferred income tax benefit -- -- -- -- --
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,404 93,651 11,737 50,589 2,242
Property, plant and equipment, net -- 129,048 3,389 -- --
Deferred income taxes -- -- -- -- --
Investments-Third Party -- 6,262 -- -- --
Investments in Subs 35,060 95,073 -- 297,161 3,199
Other assets 7,258 20,622 4,339 7,848 --
----------------------------------------------------------------------------------
TOTAL ASSETS $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2 95,939 2,240 20,216 780
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 67,152 --
Secured Debt Accrued Interest * -- 17,701 -- 5,240 --
Unsecured debt 192,878 277,993 1,351 265,001 231
Other / Intercompany -- 201,020 -- 4,904 --
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 254 -- -- --
Less: Unearned compensation -- (458) -- -- --
Redeemable preferred stock 26,541 (15,203) -- -- --
STOCKHOLDERS' EQUITY: --
Common stock, $.01 par value -- 75 1 48 --
Additional paid-in capital (367,555) (229,904) -- 83,348 5,370
Retained earnings-Filing Date 191,923 (215,396) 15,333 (90,594) (877)
Retained earnings-Post Filing Date (67) (12,538) 540 283 (63)
Pension adjustment -- (135) -- -- --
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- (3) -- -- --
---------------------------------------------------------------------------------
(175,699) (457,901) 15,874 (6,915) 4,430
Treasury stock at cost -- (2,537) -- -- --
---------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,699) (460,438) 15,874 (6,915) 4,430
TOTAL LIABILITIES AND EQUITY $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
=================================================================================
$ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ (79) $ 361 $ -- $ -- $ 4,316
Trade accounts receivable, net 4,177 4,724 -- -- 52,700
Other Receivables 37 -- -- 7,604
Due from affiliates 6,855 2,811 3,094 (83,255) 4,175
Inventories 1,693 8,863 -- -- 37,684
Prepaid expenses -- (283) -- 2,142
Deferred income tax benefit -- -- -- -- --
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,646 16,796 2,811 (83,255) 108,621
Property, plant and equipment, net 44,633 6,352 -- -- 183,422
Deferred income taxes -- -- -- -- --
Investments-Third Party -- -- -- -- 6,262
Investments in Subs -- -- -- (398,721) 31,772
Other assets -- 1,452 2,777 (1) 44,295
--------------------------------------------------------------------------
TOTAL ASSETS $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2,620 3,433 13 (27,514) 97,729
Pre-Petition liabilities:
Notes Payable - Secured * -- 57,221 3,652 (60,873) 295,000
Secured Debt Accrued Interest * -- 4,465 285 (4,750) 22,941
Unsecured debt 62,478 73,333 840 (130,521) 743,584
Other / Intercompany -- -- (201,020) 4,904
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 35 -- -- 289
Less: Unearned compensation -- 458 -- -- --
Redeemable preferred stock -- 15,448 -- -- 26,786
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- -- -- (1) 123
Additional paid-in capital 3,199 9,676 -- (57,298) (553,164)
Retained earnings-Filing Date (10,909) (138,266) 779 -- (248,007)
Retained earnings-Post Filing Date (109) (1,203) 19 -- (13,138)
Pension adjustment -- -- -- -- (135)
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- -- -- -- (3)
--------------------------------------------------------------------------
(7,819) (129,793) 798 (57,299) (814,324)
Treasury stock at cost -- -- -- -- (2,537)
--------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (7,819) (129,793) 798 (57,299) (816,861)
TOTAL LIABILITIES AND EQUITY $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
$ -- $ -- $ -- $ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage
is pushed down to the subsidiaries.
MOR 2 - 3
9
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
FOR THE PERIOD ENDING AUGUST 31, 2001
(IN THOUSANDS)
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS, US, CHEMICALS,
HOLDINGS INC. INC. ENERGY, INC. INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 28,667 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- 48 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- 925 -- -- -- 40
TOTAL TAXES PAYABLE $ -- $ 973 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION -- 41,472 -- -- -- --
ACCRUED INTEREST PAYABLE -- 234 -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- 2,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 22,593 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 95,939 $ 2,240 $ 20,216 $ 780 $ 2,620
====================================================================================================================================
-------------------------------------------------------------
STERLING STERLING
FIBERS CHEMICALS
INC. INT'L, INC. DEBTORS
01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 13 $ (8,105) $ 28,458
ROYALTY AND REVENUE PAYABLE -- -- -- --
NOTES PAYABLE -- -- (19,409) --
TAX PAYABLE: -- -- -- --
Federal Payroll Taxes 5 -- -- 5
State Payroll & Sales 13 -- -- 61
Ad Valorem Taxes -- -- -- --
Other Taxes (Property/franchise) 389 -- -- 1,354
TOTAL TAXES PAYABLE $ 407 $ -- $ -- $ 1,420
SECURED DEBT POST-PETITION -- -- -- 41,472
ACCRUED INTEREST PAYABLE -- -- -- 234
*ACCRUED PROFESSIONAL FEES: -- -- -- 2,000
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- 24,145
2. Lease Operating Expenses/Capital -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 13 $ (27,514) $ 97,729
=====================================================================================================
*Payment Requires Court Approval
MOR-4
10
CONSOLIDATED DEBTORS(1)
(IN THOUSANDS)
AGING OF POST-PETITION LIABILITIES(2)
MONTH 08/31/2001
-----------------------
================================================================================================================================
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES AD-VALOREM, ROYALTY
OTHER TAXES AND INSURANCE
================================================================================================================================
0-30 $ 97,729 $ 96,309 $ 5 $ 61 $1,354 $ -
--------------------------------------------------------------------------------------------------------------------------------
31-60 - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
61-90 - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
91 + - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 97,729 $ 96,309 $ 5 $ 61 $1,354 $ -
================================================================================================================================
AGING OF ACCOUNTS RECEIVABLE(3)
================================================================================================================================
MONTH
================================================================================================================================
0-30 $42,120 $42,120 $ - $ - $ - $ -
--------------------------------------------------------------------------------------------------------------------------------
31-60 4,151 4,151 - - -
--------------------------------------------------------------------------------------------------------------------------------
61-90 1,154 1,154 - - -
--------------------------------------------------------------------------------------------------------------------------------
91 + 5,274 5,274 - - -
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $52,699 $52,699 $ - $ - $ - $ -
================================================================================================================================
(1) MOR-5 is presented only on a consolidated debtor basis.
(2) Days aging from due date.
(3) Days aging from invoice due date.
MOR-5
11
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS) CASE NUMBER: See Each Company Below
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STATEMENT OF INCOME (LOSS)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 36,458,061 $ 327,939 $ 1,688,935 $ 595,406
TOTAL COST OF REVENUES -- 38,535,886 327,939 29,600 624,624
GROSS PROFIT $ -- $ (2,077,825) $ -- $ 1,659,335 $ (29,218)
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,772 $ 858,049 $ -- $ 406,973 $ 32,298
Insiders Compensation -- 173,179 -- -- --
Professional Fees -- 2,015,000 -- -- --
Other (attach list) -- 539,842 (539,842) -- --
TOTAL OPERATING EXPENSE $ 1,772 $ 3,586,070 $ (539,842) $ 406,973 $ 32,298
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (1,772) $ (5,663,895) $ 539,842 $ 1,252,362 $ (61,516)
INTEREST EXPENSE (includes amort of debt fees) (6,595) 3,553,595 -- 250,944 --
DEPRECIATION 71,765 3,293,410 -- 718,977 --
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 65,170 $ 6,847,005 $ -- $ 969,921 $ --
=================================================================================================================================
NET INCOME BEFORE TAXES $ (66,942) $ (12,510,900) $ 539,842 $ 282,441 $ (61,516)
INCOME TAXES -- 27,000 -- -- --
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (66,942) $ (12,537,900) $ 539,842 $ 282,441 $ (61,516)
=================================================================================================================================
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 4,044,462 $ 4,472,168 $ 123,655 $ (123,655) $ 47,586,971
TOTAL COST OF REVENUES 1,909,929 4,472,502 -- (123,655) 45,776,825
GROSS PROFIT $ 2,134,533 $ (334) $ 123,655 $ -- $ 1,810,146
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 2,325,050
Insiders Compensation -- -- -- -- 173,179
Professional Fees -- -- -- -- 2,015,000
Other (attach list) -- -- -- -- --
-- --
TOTAL OPERATING EXPENSE $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 4,513,229
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 503,539 $ (209,403) $ 110,646 827,114 (2,703,083)
INTEREST EXPENSE (includes amort of debt fees) -- 921,502 56,498 827,114 5,603,058
DEPRECIATION 612,861 71,658 34,500 -- 4,803,171
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 612,861 $ 993,160 $ 90,998 $ 827,114 $ 10,406,229
==============================================================================================================================
NET INCOME BEFORE TAXES $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,109,312)
INCOME TAXES -- -- -- -- 27,000
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,136,312)
==============================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or frequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
12
CASE NUMBER: SEE EACH COMPANY BELOW
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ 539,842 $ (539,842) $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ 539,842 $ (539,842) $ -- $ --
=================================================================================================================================
STERLING PULP STERLING STERLING
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC. DEBTORS
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ -- $ -- $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
MOR-6 ATTACHMENT
13
CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
====================================================================================================================================
CASH RECEIPTS AND 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 FILING TO
DISBURSEMENTS DATE
------------------------------------------------------------------------------------------------------------------------------------
1. CASH-BEGINNING OF MONTH $ - $ - $ - $ - $ - $ - $ -
------------------------------------------------------------------------------------------------------------------------------------
RECEIPTS:
------------------------------------------------------------------------------------------------------------------------------------
2. CASH SALES $ - $ - $ - $ - $ - $ - $ -
------------------------------------------------------------------------------------------------------------------------------------
3. COLLECTION OF ACCOUNTS RECEIVABLE - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
4. LOANS & ADVANCES (attach list) - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
5. SALE OF ASSETS - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
6. OTHER (attach list) - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RECEIPTS $ - $ - $ - $ - $ - $ - $ -
------------------------------------------------------------------------------------------------------------------------------------
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A
------------------------------------------------------------------------------------------------------------------------------------
DISBURSEMENTS:
------------------------------------------------------------------------------------------------------------------------------------
7. NET PAYROLL $ - $ - $ - $ - $ - $ - $ -
------------------------------------------------------------------------------------------------------------------------------------
8. PAYROLL TAXES PAID - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
9. SALES, USE & OTHER TAXES PAID - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
10. SECURED/RENTAL/LEASES - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
11. UTILITIES - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
12. INSURANCE - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
13. INVENTORY PURCHASES - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
14. VEHICLE EXPENSES - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
15. TRAVEL & ENTERTAINMENT - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
16. REPAIRS, MAINTENANCE & SUPPLIES - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
17. ADMINISTRATIVE & SELLING - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
18. OTHER (attach list) - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISBURSEMENTS FROM OPERATIONS $ - $ - $ - $ - $ - $ - $ -
------------------------------------------------------------------------------------------------------------------------------------
19. PROFESSIONAL FEES $ - $ - $ - $ - - $ - -
------------------------------------------------------------------------------------------------------------------------------------
20. U.S. TRUSTEE FEES - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
21. OTHER REORGANIZATION EXPENSES (attach list) - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL DISBURSEMENTS $ - $ - $ - $ - - $ - -
------------------------------------------------------------------------------------------------------------------------------------
22. NET CASH FLOW $ - $ - $ - $ - - $ - -
------------------------------------------------------------------------------------------------------------------------------------
23. CASH - END OF MONTH (MOR-2) $ - $ - $ - $ - - $ - -
====================================================================================================================================
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
14
CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
===============================================================================================================================
OTHER CASH RECEIPTS AND 31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 FILING TO
DISBURSEMENTS: DATE
--------------------------------------------------------------------------------------------------------------------------------
6. OTHER RECEIPTS:
--------------------------------------------------------------------------------------------------------------------------------
Interest Income $ - $ - $ - $ - $ - $ - $ -
--------------------------------------------------------------------------------------------------------------------------------
401(k) Plan Refund - - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
Cobra Insurance Payment - - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
Miscellaneous - - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
Emission Credits - - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER RECEIPTS $ - $ - $ - $ - $ - $ - $ -
--------------------------------------------------------------------------------------------------------------------------------
18. OTHER DISBURSEMENTS:
--------------------------------------------------------------------------------------------------------------------------------
Capital Expenditures $ - $ - $ - $ - $ - $ - -
--------------------------------------------------------------------------------------------------------------------------------
Interest Payment - - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
Restricted Cash - Bond Funding - - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
Pre-petition checks voided in current period - - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
TOTAL OTHER DISBURSEMENTS $ - $ - $ - $ - $ - $ - $ -
================================================================================================================================
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
15
CASE NAME: Sterling Pulp Chemicals US, Inc. CASE NUMBER: 01-37811-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
---------------------------------
===========================================================================================================================
BANK NAME
---------------------------------------------------------------------------------------------------------------------------
ACCOUNT NUMBER
---------------------------------------------------------------------------------------------------------------------------
ACCOUNT TYPE TOTAL
------------ -----
---------------------------------------------------------------------------------------------------------------------------
BANK BALANCE $ -
---------------------------------------------------------------------------------------------------------------------------
DEPOSIT IN TRANSIT -
---------------------------------------------------------------------------------------------------------------------------
OUTSTANDING CHECKS -
---------------------------------------------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE $ - $ - $ - $ - $ - $ - $ - $ - $ -
---------------------------------------------------------------------------------------------------------------------------
BEGINNNG CASH - PER BOOKS $ -
---------------------------------------------------------------------------------------------------------------------------
RECEIPTS -
---------------------------------------------------------------------------------------------------------------------------
TRANSFERS BETWEEN ACCOUNTS -
---------------------------------------------------------------------------------------------------------------------------
(WITHDRAWAL)CONTRIBUTION- -
---------------------------------------------------------------------------------------------------------------------------
BY INDIVIDUAL DEBTOR MFR-2 -
---------------------------------------------------------------------------------------------------------------------------
CHECKS/OTHER DISBURSEMENTS -
---------------------------------------------------------------------------------------------------------------------------
ENDING CASH - PER BOOKS $ - $ - $ - $ - $ - $ - $ - $ - $ -
===========================================================================================================================
Note: Bank statements have not been received in time to complete this report.
Future reports will include reconciliations for the prior month.
MOR-8
16
CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
PAYMENT TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
====================================================================================================================================
8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO
INSIDERS: NAME/POSITION/COMP TYPE (2) DATE
------------------------------------------------------------------------------------------------------------------------------------
1. $ - $ - $ - $ - $ - $ - $ -
------------------------------------------------------------------------------------------------------------------------------------
2. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
3. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
4. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
5. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
6. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
7. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
8. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
9. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INSIDERS (MOR-1) $ - $ - $ - $ - $ - $ - $ -
====================================================================================================================================
====================================================================================================================================
8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO
PROFESSIONALS DATE
NAME/ORDER DATE
------------------------------------------------------------------------------------------------------------------------------------
1. $ - $ - $ - $ - $ - $ - $ -
------------------------------------------------------------------------------------------------------------------------------------
2. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
3. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
4. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
5. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
6. - - - - - - -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL PROFESSIONALS (MOR-1) $ - $ - $ - $ - $ - $ - $ -
====================================================================================================================================
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01.
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (I) DIRECTORS, (II)
OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE
SECURITIES AND EXCHANGE ACT OF 1934, (III) AFFILIATES ; AND (IV) PARTIES
TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO
BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT
DESIGNATED AS INSIDERS
FOR PURPOSES OF SECTION 16(A) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY
THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE
AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON
REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND
EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE
DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF
SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES.
(3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE,
ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE
#01-37806-H4-11.
MOR-9
EX-99.8
10
h90773ex99-8.txt
MONTHLY OPERATING REPORT FOR STERLING PULP CHEM
1
EXHIBIT 99.8
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
CASE NAME: STERLING PULP CHEMICALS, INC. PETITION DATE: 07/16/01
CASE NUMBER: 01-37812-H4-11
MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2001
MONTH 7/16/01-8/31/01
-----------------------------------------------------------------------------------
REVENUES (MOR-6) $ 4,044,462 $-- $-- $-- $-- $--
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 503,539 $-- $-- $-- $-- $--
NET INCOME (LOSS) (MOR-6) $ (109,322) $-- $-- $-- $-- $--
PAYMENTS TO INSIDERS (MOR-9) $ -- $-- $-- $-- $-- $--
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $-- $-- $-- $-- $--
TOTAL DISBURSEMENTS (MOR-7) $ 6,975,175 $-- $-- $-- $-- $--
***The original of this document MUST BE FILED with the United States Bankruptcy
Court and a COPY MUST BE SENT to the United States Trustee***
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
See attachment 2 DATE
------------------------------
CASUALTY YES ( x) NO ( ) 08-01-02
LIABILITY YES ( x) NO ( ) 07-01-02
VEHICLE YES ( x) NO ( ) 07-01-02
WORKER'S YES ( x) NO ( ) 07-01-02
OTHER YES ( x) NO ( ) various
ATTORNEY NAME: Jeff Spiers
FIRM: Andrews & Kurth LLP
ADDRESS: 600 Travis
ADDRESS: Suite 4200
CITY, STATE ZIP: Houston, TX 77002
TELEPHONE: 713-220-4103
Are all accounts receivable being collected within terms? NO
Are all post-petition liabilities, including taxes, being paid with terms? YES
Have any pre-petition liabilities been paid? YES If so, describe
See Attachment 3
-------------------------------------------------------------------------------
Are all funds received being deposited into DIP bank accounts? YES
Were any assets disposed of outside the normal course of business? NO
If so, describe
---------------------------------------------------------------
-------------------------------------------------------------------------------
Are all U.S. Trustee Quarterly Fee Payments current? YES
What is the status of your Plan of Reorganization?
A Plan of Reorganization is currently being developed.
-------------------------------------------------------------------------------
I certify under penalty of perjury that the following
complete Monthly Operating Report (MOR), consisting of MOR-1
through MOR-9 plus attachments, is true and correct.
SIGNED /s/ PAUL VANDERHOVEN
---------------------------------------------------
(ORIGINAL SIGNATURE)
TITLE VP Finance, CFO
--------------------------------------------------
MOR-1
2
CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
PAID
COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH
---------------------------------------------------------------------------------------------------------------
See Attachment 2
MOR-1 ATTACHMENT 2
3
Page 1 of 3
9/14/01
SUMMARY OF COVERAGES
FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 07/01/2002 Total annual
Liability. Zurich US remuneration
Ded. $250,000 per accident.
2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 07/01/2002 Number of vehicles
Ded. $25,000 per occurrence. Zurich Amer. owned and leased
3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 07/01/2002 Annual revenues and
Excess to $1 Million SIR aggregate. Excess $1,000,000 GL remuneration
$2,000,000 AL.
4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 07/01/2002 Included
aggregate. (Reinsured through
AIG.)
5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 07/01/2002 Flat charge - based
aggregate. on exposures and
risk potential
6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 07/01/2002 Flat charge - based
aggregate. Lore on exposures and
risk potential
7 Excess Liability $50,000,000 Zurich 1 year 07/01/2002 Flat charge
8 Excess Liability $50,000,000 AIG 1 year 07/01/2002 Flat Charge
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
1 Workers Compensation $195,653 - Audit at (AFCO) expiration.
Plus all losses within deductible. Paid
through 10/1/01.
2 Automobile Liability $92,955 (AFCO) Paid through 10/1/01.
3 Excess Liability $451,090 Annual - Half on 7/1/01; 1/2
Excess to $1 Million SIR on 1/1/02. Paid through 1/1/02.
4 Excess Liability Included - Paid through 1/1/02.
5 Excess Liability $295,000 - Paid through expiration.
6 Excess Liability $241,886 - Paid through expiration.
7 Excess Liability $109,210 - Paid through expiration.
8 Excess Liability $80,938 - Paid through expiration.
4
Page 2 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
9 Excess Liability $50,000,000 Starr Excess 1 year 07/01/2002 Flat Charge
10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire 1 year 07/01/2002 Based on volume
Operators Liability and Ded. $25,000 per occurrence Ins. Co. thru Marsh throughput and no.
Charterer's Legal $100,000 pollution per occurrence. London chartered vessels.
Liability
11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 07/01/2002 Volume thru put &
P&L Brockbank & vessels docked.
Liberty Und.
12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 07/01/2002 Flat
Brockbank & N.Y.
Marine Gen. Ins.
13 Property Damage, $ Total insured values combined all- Munich Re: et. al 1 year 08/01/2002 Property Values.-PD
Business Interruption and risk. Sublimits: Flood - $100 mil., Income values - BI
Boiler & Machinery Earthquake - $100 mil., $10 mil PML, fire protection
extra expense. Ded.: Petrochem available; many other
$1,000,000 PD, 10 day - BI. Pulp & factors.
Fibers - $1 mil. PD/BI.
14 Directors & $15,000,000 each loss and each National Union 1 year 08/21/2002 Various
Officers Liability policy year. Ded. $1,000,000 Corp. Indemnity
15 Excess Directors & $10,000,000 excess of Primary Hartford 1 year 08/21/2002 Various
Officers Liability D&O
16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 08/21/2002 Various
Liability Co.
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
9 Excess Liability $62,500 - Paid through expiration.
10 Marine Terminal $27,000 (AFCO) Min. premium &
Operators Liability and deposit. Paid through 10/1/01.
Charterer's Legal
Liability
11 Excess Marine Liability $57,375 - Paid through 10/1/01.
12 Excess Marine Liability $21,250 - Paid through 10/1/01.
13 Property Damage, Annual - Financed through AFCO.
Business Interruption and $4.0M (est.) Paid through 10/1/01.
Boiler & Machinery
14 Directors & $316,000 (15 mos.) - Paid through
Officers Liability expiration.
15 Excess Directors & $223,700 (15 mos.) - Paid through
Officers Liability expiration.
16 Directors & Officers $115,000 (15 mos.) - Paid through
Liability expiration.
5
Page 3 of 3
9/14/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/01/2001 Various
Depositor's Forgery Agreement. Ded. $25,000. Chubb
18 Hull & Machinery and Barge Hull Value Zurich-Americano 1 year 07/01/2002 Hull & Machinery
Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values
Ded. $5,000 per loss.
$1,000,000 P&I
19 Pollution Insurance Section A - $250,000 Water Quality 1 year 07/01/2002 Hull gross registered
Section B - $5,000,000 Insurance tonnage
CERCLA - $5,000,000 Syndicate
20 Marine and Railroad $12,000,000 any one vessel Mutual Marine 1 year Continuing Declared shipment
Cargo $1,000,000 any one barge values
$1,000,000 any one rail ship.
$100,000 any one truck
21 Office Contents $1,000,000 Phoenix Assur. 1 year 10/01/2001 Limit
22 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
23 Fiduciary $10,000,000 National Union 1 year 08/21/2002 Various
Ded. $250,000 per occurrence
24 Environmental $4,000,000 per loss ECS 1 year 01/15/2002 Loss Potential
Impairment Liability $8,000,000 aggregate (Indian Harbor)
(Petrochem & Fibers)
25 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated
Bonds - Petrochem Indemnity Closure/Post Closure
Costs
NO. TYPE OF INSURANCE ANNUAL PREMIUM
--- ----------------- --------------
17 Employee Dishonesty & $20,000 Paid through 10/1/01.
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO) Paid through 10/1/01.
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO) Paid through 10/1/01.
20 Marine and Railroad $40,000 Annual Approx. Paid through 10/1/01.
Cargo
21 Office Contents $4,500 - Paid through expiration.
22 Duty Drawback Bond $2,875 - Paid through 11/17/01.
23 Fiduciary $22,000 - Financed through Imperial. Renewal
binder issued. Processing annual payment.
24 Environmental $106,200 - Financed through AFCO. Paid
Impairment Liability through 1/15/02.
(Petrochem & Fibers)
25 Closure/Post Closure $40,610 Paid through 1/1/02.
Bonds - Petrochem
ANNUAL TOTAL: $3,459,260 *
*Total fluctuates due to cargo premiums dependence upon volume of CIF
export shipments and annual audits of Worker's Compensation and Marine Terminal
policies.
6
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING PULP CHEMICALS, INC. CASE #01-37812-H4-11
Norfolk Southern Railway $ 62,827.78 Shippers
CSX Transportation $ 8,882.00 Shippers
Albany Scale Co. $ 4,096.75 Critical Vendor
Davidson Transport $ 5,797.49 Shippers
--------------
TOTAL $ 81,604.02
==============
STERLING PULP US, INC. CASE #01-37811-H4-11
Canada Customs & Revenue Agency $ 1,840.45
==============
STERLING FIBERS, INC. CASE #01-37808-H4-11
Crocker Technical Papers $ 77,244.52 Critical Vendor
Direct Line Commodities $ 18,530.10 Critical Vendor
Celedon Trucking Services $ 20,986.49 Shippers
Mini Fibers, Inc. $ 127,665.67 Critical Vendor
DeRijke $ 12,129.02
Engineered Fibers Tech (EFT) $ 14,101.44 Critical Vendor
CSX Transportation $ 14,411.88 Shippers
Shaskikumar Daftary $ 238.97 Independent contractor
Charlie Hummel $ 2,160.00 Independent contractor
Ceridian Employer Services $ 246.67 Payroll/Benefit Admin payroll service provider
A Agrawal $ 2,522.32 Payroll/Benefit Admin (expense reimbursement)
H Chever $ 521.80 Payroll/Benefit Admin (expense reimbursement)
NDCunningham $ 390.00 Shippers
Affiliated Brokers $ 97.04 Shippers
J Hagerott $ 1,757.02 Payroll/Benefit Admin (expense reimbursement)
B Montz $ 752.79 Payroll/Benefit Admin (expense reimbursement)
--------------
TOTAL $ 293,755.73
==============
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
Aubrey Cannon $ 325.58 Payroll/Benefit Admin (expense reimbursement)
Charles Cannon $ 16.38 Payroll/Benefit Admin (expense reimbursement)
Karol Cripps $ 45.00 Payroll/Benefit Admin (expense reimbursement)
Greg Escamilla $ 80.25 Payroll/Benefit Admin (expense reimbursement)
Gene Kenyon $ 1,327.42 Payroll/Benefit Admin (expense reimbursement)
Dennis Kos $ 324.78 Payroll/Benefit Admin (expense reimbursement)
Wes Noel $ 62.10 Payroll/Benefit Admin (expense reimbursement)
Jack Pollock $ 45.72 Payroll/Benefit Admin (expense reimbursement)
--------------
Total Employee Exp. Reimbursements $ 2,227.23
--------------
Blue Cross & Blue Shield of Florida $ 170,716.53 payroll/benefit admin
Crawford & Company $ 1,819.85 Workers Comp
AFCO $ 10,220.80 Insurance Coverage
Bayport Occupational Med $ 11,812.00 Independent Contractor
BNSF Railroad $ 157,944.95 Shippers
Ceridian $ 1,277.29 payroll/benefit admin
Federal Express $ 1,502.71 Shippers
Imperial Premium Finance $ 10,584.23 Insurance Coverage
Jeil Marine $ 26,629.16 Shippers
Prescription Solutions $ 178,558.97 payroll/benefit admin
Union Pacific Railroad $ 48,700.00 Shippers
Woolim Shipping $ 68,676.82 Shippers
--------------
Total Vendor Payments $ 688,443.31
--------------
CIT Revolving Credit Facility $95,279,975.09
--------------
TOTAL $95,970,645.63
==============
TOTAL DEBTOR PREFILE LIAB. PAID $96,347,845.83
--------------
SUMMARY
CIT Revolving Credit Facility $95,279,975.09
Critical Vendors $ 241,638.48
Shippers $ 416,846.32
Other $ 409,385.94
--------------
TOTAL $96,347,845.83
7
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED JULY 16, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING CANADA,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,362 $ 9,138 $ (1,208) $ 271
Trade accounts receivable, net - 43,168 327 3,662
Other Receivables - 1,268 - 4,242
Due from affiliates - 21,298 9,115 20,231
Inventories - 30,554 - -
Prepaid expenses 12 1,390 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,374 106,816 8,234 28,406
Property, plant and equipment, net - 131,928 3,482 -
Deferred income taxes - - - -
Investments-Third Party - 6,262 - -
Investments in Subs 35,060 95,073 - 297,161
Other assets 7,354 26,496 4,762 14,198
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 67,152
Secured Debt Accrued Interest * - 14,176 - 4,201
Revolver - 90,018 - -
Unsecured debt 192,879 297,064 1,144 270,594
Other / Intercompany - 201,020 - 5,016
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - -
Less: Unearned compensation - (458) - -
Redeemable preferred stock 26,541 (15,448) - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 48
Additional paid-in capital (367,555) (229,904) - 83,348
Retained earnings 191,923 (215,396) 15,333 (90,594)
Pension adjustment - (134) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(175,632) (445,362) 15,334 (7,198)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,632) (447,899) 15,334 (7,198)
TOTAL LIABILITIES AND EQUITY $ 43,788 $ 366,575 $ 16,478 $339,765
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING PULP STERLING PULP STERLING FIBERS STERLING CHEMICALS
CHEMICALS US, INC. CHEMICALS, INC. INC. INT'L, INC.
ASSETS 01-37811-H4-11 01-37812-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 309 $ 714 $ -
Trade accounts receivable, net 1,035 4,546 4,639 -
Other Receivables - - 37 2,971
Due from affiliates 156 3,077 - -
Inventories 339 1,725 10,983 -
Prepaid expenses - - - (283)
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,530 9,657 16,373 2,688
Property, plant and equipment, net - 45,184 6,407 -
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs 3,199 - - -
Other assets - - 1,828 2,811
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * - - 57,221 3,652
Secured Debt Accrued Interest * - - 3,580 228
Revolver - - - -
Unsecured debt 236 62,551 62,331 840
Other / Intercompany - - 14,125 -
Deferred income taxes - -
Common stock held by new ESOP - - 35 -
Less: Unearned compensation - - 458 -
Redeemable preferred stock - - 15,448 -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - - - -
Additional paid-in capital (5,370) 3,199 9,676 -
Retained earnings (877) (10,909) (138,266) 779
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
4,493 (7,710) (128,590) 779
Treasury stock at cost
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 4,493 (7,710) (128,590) 779
TOTAL LIABILITIES AND EQUITY $ 4,729 $ 54,841 $ 24,608 $ 5,499
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 10,586
Trade accounts receivable, net - 57,377
Other Receivables (2,971) 5,547
Due from affiliates (50,909) 2,968
Inventories - 43,601
Prepaid expenses - 1,119
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (53,880) 121,198
Property, plant and equipment, net - 187,001
Deferred income taxes - -
Investments-Third Party - 6,262
Investments in Subs (398,721) 31,772
Other assets (1) 57,448
----------------------------------
TOTAL ASSETS $(452,602) $ 403,681
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (3,808) 18,377
Revolver - 90,018
Unsecured debt (129,602) 758,037
Other / Intercompany (201,020) 19,141
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 26,541
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (57,298) (553,164)
Retained earnings - (248,007)
Pension adjustment - (134)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(57,299) (801,185)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (57,299) (803,722)
TOTAL LIABILITIES AND EQUITY $(452,602) $ 403,681
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
8
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED AUGUST 31, 2001
(IN THOUSANDS)(UNAUDITED)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS US,
HOLDINGS INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,369 $ 2,157 $ -- $ 508 $ --
Trade accounts receivable, net -- 40,055 95 2,445 1,204
Other Receivables -- 3,307 -- 4,260 --
Due from affiliates -- 18,867 11,642 43,376 785
Inventories -- 26,875 -- -- 253
Prepaid expenses 35 2,390 -- -- --
Deferred income tax benefit -- -- -- -- --
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,404 93,651 11,737 50,589 2,242
Property, plant and equipment, net -- 129,048 3,389 -- --
Deferred income taxes -- -- -- -- --
Investments-Third Party -- 6,262 -- -- --
Investments in Subs 35,060 95,073 -- 297,161 3,199
Other assets 7,258 20,622 4,339 7,848 --
----------------------------------------------------------------------------------
TOTAL ASSETS $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2 95,939 2,240 20,216 780
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 67,152 --
Secured Debt Accrued Interest * -- 17,701 -- 5,240 --
Unsecured debt 192,878 277,993 1,351 265,001 231
Other / Intercompany -- 201,020 -- 4,904 --
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 254 -- -- --
Less: Unearned compensation -- (458) -- -- --
Redeemable preferred stock 26,541 (15,203) -- -- --
STOCKHOLDERS' EQUITY: --
Common stock, $.01 par value -- 75 1 48 --
Additional paid-in capital (367,555) (229,904) -- 83,348 5,370
Retained earnings-Filing Date 191,923 (215,396) 15,333 (90,594) (877)
Retained earnings-Post Filing Date (67) (12,538) 540 283 (63)
Pension adjustment -- (135) -- -- --
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- (3) -- -- --
---------------------------------------------------------------------------------
(175,699) (457,901) 15,874 (6,915) 4,430
Treasury stock at cost -- (2,537) -- -- --
---------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (175,699) (460,438) 15,874 (6,915) 4,430
TOTAL LIABILITIES AND EQUITY $ 43,722 $ 344,656 $ 19,465 $ 355,598 $ 5,441
=================================================================================
$ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $ (79) $ 361 $ -- $ -- $ 4,316
Trade accounts receivable, net 4,177 4,724 -- -- 52,700
Other Receivables 37 -- -- 7,604
Due from affiliates 6,855 2,811 3,094 (83,255) 4,175
Inventories 1,693 8,863 -- -- 37,684
Prepaid expenses -- (283) -- 2,142
Deferred income tax benefit -- -- -- -- --
--------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,646 16,796 2,811 (83,255) 108,621
Property, plant and equipment, net 44,633 6,352 -- -- 183,422
Deferred income taxes -- -- -- -- --
Investments-Third Party -- -- -- -- 6,262
Investments in Subs -- -- -- (398,721) 31,772
Other assets -- 1,452 2,777 (1) 44,295
--------------------------------------------------------------------------
TOTAL ASSETS $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 2,620 3,433 13 (27,514) 97,729
Pre-Petition liabilities:
Notes Payable - Secured * -- 57,221 3,652 (60,873) 295,000
Secured Debt Accrued Interest * -- 4,465 285 (4,750) 22,941
Unsecured debt 62,478 73,333 840 (130,521) 743,584
Other / Intercompany -- -- (201,020) 4,904
Deferred income taxes -- -- -- -- --
Common stock held by new ESOP -- 35 -- -- 289
Less: Unearned compensation -- 458 -- -- --
Redeemable preferred stock -- 15,448 -- -- 26,786
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- -- -- (1) 123
Additional paid-in capital 3,199 9,676 -- (57,298) (553,164)
Retained earnings-Filing Date (10,909) (138,266) 779 -- (248,007)
Retained earnings-Post Filing Date (109) (1,203) 19 -- (13,138)
Pension adjustment -- -- -- -- (135)
Accumulated translation adj. -- -- -- -- --
Deferred compensation -- -- -- -- (3)
--------------------------------------------------------------------------
(7,819) (129,793) 798 (57,299) (814,324)
Treasury stock at cost -- -- -- -- (2,537)
--------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (7,819) (129,793) 798 (57,299) (816,861)
TOTAL LIABILITIES AND EQUITY $ 57,279 $ 24,600 $ 5,588 $ (481,977) $ 374,372
==========================================================================
$ -- $ -- $ -- $ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage
is pushed down to the subsidiaries.
MOR 2 - 3
9
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
FOR THE PERIOD ENDING AUGUST 31, 2001
(IN THOUSANDS)
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP STERLING PULP
CHEMICALS CHEMICALS CHEMICALS CANADA, CHEMICALS, US, CHEMICALS,
HOLDINGS INC. INC. ENERGY, INC. INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 28,667 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- 48 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- 925 -- -- -- 40
TOTAL TAXES PAYABLE $ -- $ 973 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION -- 41,472 -- -- -- --
ACCRUED INTEREST PAYABLE -- 234 -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- 2,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 22,593 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 95,939 $ 2,240 $ 20,216 $ 780 $ 2,620
====================================================================================================================================
-------------------------------------------------------------
STERLING STERLING
FIBERS CHEMICALS
INC. INT'L, INC. DEBTORS
01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 13 $ (8,105) $ 28,458
ROYALTY AND REVENUE PAYABLE -- -- -- --
NOTES PAYABLE -- -- (19,409) --
TAX PAYABLE: -- -- -- --
Federal Payroll Taxes 5 -- -- 5
State Payroll & Sales 13 -- -- 61
Ad Valorem Taxes -- -- -- --
Other Taxes (Property/franchise) 389 -- -- 1,354
TOTAL TAXES PAYABLE $ 407 $ -- $ -- $ 1,420
SECURED DEBT POST-PETITION -- -- -- 41,472
ACCRUED INTEREST PAYABLE -- -- -- 234
*ACCRUED PROFESSIONAL FEES: -- -- -- 2,000
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- 24,145
2. Lease Operating Expenses/Capital -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 13 $ (27,514) $ 97,729
=====================================================================================================
*Payment Requires Court Approval
MOR-4
10
CONSOLIDATED DEBTORS(1)
(IN THOUSANDS)
AGING OF POST-PETITION LIABILITIES(2)
MONTH 08/31/2001
-----------------------
================================================================================================================================
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES AD-VALOREM, ROYALTY
OTHER TAXES AND INSURANCE
--------------------------------------------------------------------------------------------------------------------------------
0-30 $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
--------------------------------------------------------------------------------------------------------------------------------
31-60 -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
61-90 -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
91 + -- -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 97,729 $ 96,309 $ 5 $ 61 $ 1,354 $ --
================================================================================================================================
AGING OF ACCOUNTS RECEIVABLE(3)
=============================================================================================================================
MONTH
-----------------
0-30 $ 42,120 $ 42,120 $ -- $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------------
31-60 4,151 4,151 -- -- --
------------------------------------------------------------------------------------------------------------------------------
61-90 1,154 1,154 -- -- --
------------------------------------------------------------------------------------------------------------------------------
91 + 5,274 5,274 -- -- --
------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 52,699 $ 52,699 $ -- $ -- $ -- $ --
==============================================================================================================================
(1) MOR-5 is presented only on a consolidated debtor basis.
(2) Days aging from due date.
(3) Days aging from invoice due date.
MOR-5
11
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS) CASE NUMBER: See Each Company Below
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STATEMENT OF INCOME (LOSS)
--------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
--------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 36,458,061 $ 327,939 $ 1,688,935 $ 595,406
TOTAL COST OF REVENUES -- 38,535,886 327,939 29,600 624,624
GROSS PROFIT $ -- $ (2,077,825) $ -- $ 1,659,335 $ (29,218)
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,772 $ 858,049 $ -- $ 406,973 $ 32,298
Insiders Compensation -- 173,179 -- -- --
Professional Fees -- 2,015,000 -- -- --
Other (attach list) -- 539,842 (539,842) -- --
TOTAL OPERATING EXPENSE $ 1,772 $ 3,586,070 $ (539,842) $ 406,973 $ 32,298
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (1,772) $ (5,663,895) $ 539,842 $ 1,252,362 $ (61,516)
INTEREST EXPENSE (includes amort of debt fees) (6,595) 3,553,595 -- 250,944 --
DEPRECIATION 71,765 3,293,410 -- 718,977 --
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 65,170 $ 6,847,005 $ -- $ 969,921 $ --
=================================================================================================================================
NET INCOME BEFORE TAXES $ (66,942) $ (12,510,900) $ 539,842 $ 282,441 $ (61,516)
INCOME TAXES -- 27,000 -- -- --
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (66,942) $ (12,537,900) $ 539,842 $ 282,441 $ (61,516)
=================================================================================================================================
--------------------------------------------------------------------------
STERLING PULP STERLING STERLING DEBTORS
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC.
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
--------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 4,044,462 $ 4,472,168 $ 123,655 $ (123,655) $ 47,586,971
TOTAL COST OF REVENUES 1,909,929 4,472,502 -- (123,655) 45,776,825
GROSS PROFIT $ 2,134,533 $ (334) $ 123,655 $ -- $ 1,810,146
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 2,325,050
Insiders Compensation -- -- -- -- 173,179
Professional Fees -- -- -- -- 2,015,000
Other (attach list) -- -- -- -- --
-- --
TOTAL OPERATING EXPENSE $ 1,630,994 $ 209,069 $ 13,009 $ (827,114) $ 4,513,229
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 503,539 $ (209,403) $ 110,646 827,114 (2,703,083)
INTEREST EXPENSE (includes amort of debt fees) -- 921,502 56,498 827,114 5,603,058
DEPRECIATION 612,861 71,658 34,500 -- 4,803,171
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 612,861 $ 993,160 $ 90,998 $ 827,114 $ 10,406,229
==============================================================================================================================
NET INCOME BEFORE TAXES $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,109,312)
INCOME TAXES -- -- -- -- 27,000
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (109,322) $ (1,202,563) $ 19,648 $ -- $(13,136,312)
==============================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation
* Footnote Mandatory
** Unusual and/or frequent item(s) outside the ordinary course of business;
requires footnote
MOR-6
12
CASE NUMBER: SEE EACH COMPANY BELOW
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE PERIOD ENDING 7/17/01 TO 8/31/01
STERLING STERLING STERLING STERLING STERLING PULP
CHEMICALS CHEMICALS, CHEMICALS CANADA, CHEMICALS US,
HOLDINGS, INC. INC. ENERGY, INC. INC. INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37810-H4-11 01-37811-H4-11
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ 539,842 $ (539,842) $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ 539,842 $ (539,842) $ -- $ --
=================================================================================================================================
STERLING PULP STERLING STERLING
CHEMICALS, FIBERS, CHEMICALS
INC. INC. INT'L, INC. DEBTORS
01-37812-H4-11 01-37808-H4-11 01-37809-H4-11 ELIMINATIONS CONSOLIDATED
=================================================================================================================================
OTHER INCOME (EXPENSE) ITEMS:
Equity Earnings in Joint Venture $ -- $ -- $ -- $ -- $ --
Other -- -- -- -- --
TOTAL OTHER INCOME (EXPENSE) ITEMS $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
MOR-6 ATTACHMENT
13
CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
===================================================================================================================================
CASH RECEIPTS AND 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 FILING TO
DISBURSEMENTS DATE
-----------------------------------------------------------------------------------------------------------------------------------
1. CASH-BEGINNING OF MONTH $ 308,953 $-- $-- $-- $-- $-- $ 308,953
----------- --- ----- ---- ---- ---- -----------
RECEIPTS:
2. CASH SALES $ -- $-- $-- $-- $-- $-- $ --
----------- --- ----- ---- ---- ---- -----------
3. COLLECTION OF ACCOUNTS RECEIVABLE 4,593,479 -- -- -- -- -- 4,593,479
----------- --- ----- ---- ---- ---- -----------
4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- --
----------- --- ----- ---- ---- ---- -----------
5. SALE OF ASSETS -- -- -- -- -- -- --
----------- --- ----- ---- ---- ---- -----------
6. OTHER (attach list) 1,994,032 -- -- -- -- -- 1,994,032
----------- --- ----- ---- ---- ---- -----------
TOTAL RECEIPTS $ 6,587,511 $-- $-- $-- $-- $-- $ 6,587,511
----------- --- ----- ---- ---- ---- -----------
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A
----------- --- ----- ---- ---- ---- -----------
DISBURSEMENTS:
7. NET PAYROLL $ -- $-- $-- $-- $-- $-- $ --
----------- --- ----- ---- ---- ---- -----------
8. PAYROLL TAXES PAID -- -- -- -- -- -- --
----------- --- ----- ---- ---- ---- -----------
9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- --
----------- --- ----- ---- ---- ---- -----------
10. SECURED/RENTAL/LEASES 4,002 -- -- -- -- -- 4,002
----------- --- ----- ---- ---- ---- -----------
11. UTILITIES 548,000 -- -- -- -- -- 548,000
----------- --- ----- ---- ---- ---- -----------
12. INSURANCE -- -- -- -- -- -- --
----------- --- ----- ---- ---- ---- -----------
13. INVENTORY PURCHASES 188,215 -- -- -- -- -- 188,215
----------- --- ----- ---- ---- ---- -----------
14. VEHICLE EXPENSES -- -- -- -- -- -- --
----------- --- ----- ---- ---- ---- -----------
15. TRAVEL & ENTERTAINMENT 1,606 -- -- -- -- -- 1,606
----------- --- ----- ---- ---- ---- -----------
16. REPAIRS, MAINTENANCE & SUPPLIES 135,944 -- -- -- -- -- 135,944
----------- --- ----- ---- ---- ---- -----------
17. ADMINISTRATIVE & SELLING 254,459 -- -- -- -- -- 254,459
----------- --- ----- ---- ---- ---- -----------
18. OTHER (attach list) 5,842,948 -- -- -- -- -- 5,842,948
----------- --- ----- ---- ---- ---- -----------
TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,975,175 $-- $-- $-- $-- $-- $ 6,975,175
----------- --- ----- ---- ---- ---- -----------
19. PROFESSIONAL FEES $ -- $-- $-- $-- $-- $-- $ --
----------- --- ----- ---- ---- ---- -----------
20. U.S. TRUSTEE FEES -- -- -- -- -- -- --
----------- --- ----- ---- ---- ---- -----------
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- --
----------- --- ----- ---- ---- ---- -----------
TOTAL DISBURSEMENTS $ 6,975,175 $-- $-- $-- $-- $-- $ 6,975,175
----------- --- ----- ---- ---- ---- -----------
22. NET CASH FLOW $ (387,664) $-- $-- $-- $-- $-- $ (387,664)
----------- --- ----- ---- ---- ---- -----------
23. CASH - END OF MONTH (MOR-2) $ (78,711) $-- $-- $-- $-- $-- $ (78,711)
=========== === ===== ==== ==== ==== ===========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
14
CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
==========================================================================================================================
OTHER CASH RECEIPTS AND 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 FILING TO
DISBURSEMENTS: DATE
--------------------------------------------------------------------------------------------------------------------------
6. OTHER RECEIPTS:
Interest Income $ -- $-- $-- $-- $-- $-- $ --
---------- ---- --- --- --- --- ----------
401(k) Plan Refund -- -- -- -- -- -- --
---------- ---- --- --- --- --- ----------
Cobra Insurance Payment -- -- -- -- -- -- --
---------- ---- --- --- --- --- ----------
Miscellaneous -- -- -- -- -- -- --
---------- ---- --- --- --- --- ----------
Emission Credits -- -- -- -- -- -- --
---------- ---- --- --- --- --- ----------
Trade AR receipts of an affiliated company 448,032 -- -- -- -- -- 448,032
---------- ---- --- --- --- --- ----------
(Sterling Pulp Chemicals Ltd.)
Cash advance from Sterling Chemicals 1,546,000 -- -- -- -- -- 1,546,000
---------- ---- --- --- --- --- ----------
TOTAL OTHER RECEIPTS $1,994,032 $-- $-- $-- $-- $-- $1,994,032
---------- ---- --- --- --- --- ----------
18. OTHER DISBURSEMENTS:
Capital Expenditures $ -- $-- $-- $-- $-- $-- $ --
---------- ---- --- --- --- --- ----------
Interest Payment -- -- -- -- -- -- --
---------- ---- --- --- --- --- ----------
Restricted Cash - Bond Funding -- -- -- -- -- -- --
---------- ---- --- --- --- --- ----------
Pre-petition checks voided in current period -- -- -- -- -- -- --
---------- ---- --- --- --- --- ----------
Trade AR receipts of an affiliated company 596,035 -- -- -- -- -- 596,035
---------- ---- --- --- --- --- ----------
(Sterling Pulp Chemicals Ltd.)
CIT revolver cash sweep July 17 - Aug 31 5,246,912 -- -- -- -- -- 5,246,912
---------- ---- --- --- --- --- ----------
TOTAL OTHER DISBURSEMENTS $5,842,948 $-- $-- $-- $-- $-- $5,842,948
========== ==== === === === === ==========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
15
CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11
CASH ACCOUNT RECONCILIATION
MONTH OF 31-AUG-01
---------------------------------
BANK NAME
----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT NUMBER
----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT TYPE TOTAL
----------------------------------------------------------------------------------------------------------------------------------
BANK BALANCE $ - $ - $ -
----------------------------------------------------------------------------------------------------------------------------------
DEPOSIT IN TRANSIT -
----------------------------------------------------------------------------------------------------------------------------------
OUTSTANDING CHECKS -
----------------------------------------------------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE $ - $ - $ - $ - $ - $ - $ -
----------------------------------------------------------------------------------------------------------------------------------
BEGINNING CASH - PER BOOKS $ - $ - $ -
----------------------------------------------------------------------------------------------------------------------------------
RECEIPTS -
----------------------------------------------------------------------------------------------------------------------------------
TRANSFERS BETWEEN ACCOUNTS -
----------------------------------------------------------------------------------------------------------------------------------
(WITHDRAWAL)CONTRIBUTION- -
----------------------------------------------------------------------------------------------------------------------------------
BY INDIVIDUAL DEBTOR MFR-2 -
----------------------------------------------------------------------------------------------------------------------------------
CHECKS/OTHER DISBURSEMENTS -
----------------------------------------------------------------------------------------------------------------------------------
ENDING CASH - PER BOOKS $ - $ - $ - $ - $ - $ - $ - $ - $ (1)
==================================================================================================================================
MOR-8
16
CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
PAYMENT TO INSIDERS AND PROFESSIONALS
Of the total disbursements shown for the month, list the amount paid to insiders
(as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the
professionals. Also, for insiders identify the type of compensation paid (e.g,
salary, commission, bonus, etc.) (Attach additional pages as necessary.)
=================================================================================================================================
8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO
INSIDERS: NAME/POSITION/COMP TYPE (2) DATE
1. $-- $-- $-- $-- $-- $-- $--
--- --- --- --- --- --- ---
2. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
3. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
4. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
5. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
6. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
7. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
8. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
9. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
TOTAL INSIDERS (MOR-1) $-- $-- $-- $-- $-- $-- $--
=== === === === === === ===
==================================================================================================================
8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO
PROFESSIONALS DATE
NAME/ORDER DATE
1. $-- $-- $-- $-- $-- $-- $--
--- --- --- --- --- --- ---
2. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
3. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
4. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
5. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
6. -- -- -- -- -- -- --
--- --- --- --- --- --- ---
TOTAL PROFESSIONALS (MOR-1) $-- $-- $-- $-- $-- $-- $--
=== === === === === === ===
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01.
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (I) DIRECTORS, (II)
OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE
SECURITIES AND EXCHANGE ACT OF 1934, (III) AFFILIATES ; AND (IV) PARTIES TO
THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO
BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT
DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SEC ACT OF 1934
HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE
UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO
COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH
OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO
PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS
EMPLOYEES.
(3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE,
ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE
#01-37806-H4-11.
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