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