0000950129-01-503767.txt : 20011112
0000950129-01-503767.hdr.sgml : 20011112
ACCESSION NUMBER: 0000950129-01-503767
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 9
CONFORMED PERIOD OF REPORT: 20011022
ITEM INFORMATION: Financial statements and exhibits
ITEM INFORMATION:
FILED AS OF DATE: 20011105
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: 1775250
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: 1775251
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
h91714e8-k.txt
STERLING CHEMICALS HOLDINGS INC - OCTOBER 22, 2001
================================================================================
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): OCTOBER 22, 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)
------------------------
================================================================================
ITEM 7. EXHIBITS
Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals
Holdings, Inc. for September 2001.
Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc.
for September 2001.
Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy,
Inc. for September 2001.
Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for
September 2001.
Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals
International, Inc. for September 2001.
Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for
September 2001.
Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals
US, Inc. for September 2001.
Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals,
Inc. for September 2001.
ITEM 9. 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 September 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).
-2-
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: November 5, 2001
By: /s/ DAVID G. ELKINS
-------------------------------------
David G. Elkins, President
STERLING CHEMICALS INC.
Date: November 5, 2001
By: /s/ DAVID G. ELKINS
-------------------------------------
David G. Elkins, President
-3-
EXHIBIT INDEX
Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals
Holdings, Inc. for September 2001.
Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc.
for September 2001.
Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy,
Inc. for September 2001.
Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for
September 2001.
Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals
International, Inc. for September 2001.
Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for
September 2001.
Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals
US, Inc. for September 2001.
Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals,
Inc. for September 2001.
EX-99.1
3
h91714ex99-1.txt
MONTHLY OPERATING REPORT F/STERLING CHEM HOLDINGS
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: SEPTEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/01
--------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ -- $ -- $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (1,772) $ 990 $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $(66,942) $74,944 $ -- $ -- $ -- $ --
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? NO If so, describe
--------------------------------------------------------------------------------
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
Page 3 of 14
10/18/01
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.
2 Automobile Liability $92,955 (AFCO)
3 Excess Liability $451,090 Annual - Half on 7/1/01;
Excess to $1 Million SIR 1/2 on 1/1/02.
4 Excess Liability Included
5 Excess Liability $295,000
6 Excess Liability $241,886
7 Excess Liability $109,210
8 Excess Liability $80,938
Page 4 of 14
10/18/01
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
10 Marine Terminal $27,000 (AFCO) Min. premium & deposit.
Operators Liability and
Charterer's Legal
Liability
11 Excess Marine Liability $57,375
12 Excess Marine Liability $21,250
13 Property Damage, Annual - Financed through AFCO.
Business Interruption $4.0M (est.)
and Boiler & Machinery
14 Directors & Officers $316,000 (15 mos.)
Liability
15 Excess Directors & $223,700 (15 mos.)
Officers Liability
16 Directors & Officers $115,000 (15 mos.)
Liability
Page 5 of 14
10/18/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/02 Various
Depositor's Forgery Agreement. Ded. $50,000. 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 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
22 Fiduciary $10,000,000 National Union 1 year 8/21/02 Various
Ded. $250,000 per occurrence
23 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/02 Loss Potential
Liability (Petrochem & $8,000,000 aggregate (Indian Harbor)
Fibers)
24 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 & $14,450
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO)
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO)
20 Marine and Railroad Cargo $40,000 Annual Approx.
21 Duty Drawback Bond $2,875
22 Fiduciary $22,000 - Financed through Imperial.
23 Environmental Impairment $106,200 - Financed through AFCO.
Liability (Petrochem &
Fibers)
24 Closure/Post Closure $40,610
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.
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED SEPTEMBER 30, 2001
(In Thousands) (Unaudited)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,371 $ 1,222 $ - $ 296
Trade accounts receivable, net - 42,057 44 3,131
Other Receivables - 2,819 - -
Due from affiliates - 19,544 11,309 4,522
Inventories - 26,899 - 8,819
Prepaid expenses 9 2,585 - -
Deferred income tax benefit - - - -
------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,380 95,126 11,353 16,768
Property, plant and equipment, net - 127,479 3,325 6,310
Deferred income taxes - - - -
Investments-Third Party - 1,500 - -
Investments in Subs 35,059 95,073 4,955 -
Other assets 7,356 24,279 - 1,428
------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,795 $ 343,457 $ 19,633 $ 24,506
====================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 1 104,081 1,676 3,582
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 57,221
Secured Debt Accrued Interest * - 20,051 - 5,055
Unsecured debt 192,878 277,260 1,110 73,391
Other / Intercompany - 201,020 - -
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - 35
Less: Unearned compensation - (458) - 458
Redeemable preferred stock 27,272 (15,769) - 15,769
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 -
Additional paid-in capital (367,555) (229,904) - 9,676
Retained earnings-Filing Date 191,191 (215,021) 15,690 (138,587)
Retained earnings-Post Filing Date 8 (23,305) 1,156 (2,094)
Pension adjustment - (135) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
------------------------------------------------------------------------------------
(176,356) (468,293) 16,847 (131,005)
Treasury stock at cost - (2,537) - -
------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (176,356) (470,830) 16,847 (131,005)
TOTAL LIABILITIES AND EQUITY $ 43,795 $ 343,457 $ 19,633 $ 24,506
====================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 916 $ - $ 170
Trade accounts receivable, net - 3,366 992 5,095
Other Receivables - 4,350 - -
Due from affiliates 2,634 43,628 835 5,969
Inventories - - 104 1,713
Prepaid expenses (283) - - 16
Deferred income tax benefit - - - -
-----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,351 52,260 1,931 12,963
Property, plant and equipment, net - - - 44,332
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs - 297,229 3,118 -
Other assets 2,754 7,335 - -
----------------------------------------------------------------------------------
TOTAL ASSETS $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 13 19,774 463 2,716
Pre-Petition liabilities:
Notes Payable - Secured * 3,652 67,152 - -
Secured Debt Accrued Interest * 323 5,932 - -
Unsecured debt 840 264,992 170 62,478
Other / Intercompany - 5,727 -
Deferred income taxes - - - -
Common stock held by new ESOP - - - -
Less: Unearned compensation - - - -
Redeemable preferred stock - - - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 48 - -
Additional paid-in capital - 83,348 5,438 3,118
Retained earnings-Filing Date 779 (90,595) (876) (10,908)
Retained earnings-Post Filing Date (502) 446 (146) (109)
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------
277 (6,753) 4,416 (7,899)
Treasury stock at cost - - - -
----------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 277 (6,753) 4,416 (7,899)
TOTAL LIABILITIES AND EQUITY $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 3,975
Trade accounts receivable, net - 54,685
Other Receivables - 7,169
Due from affiliates (81,463) 6,978
Inventories - 37,535
Prepaid expenses - 2,327
Deferred income tax benefit - -
--------------------------------
TOTAL CURRENT ASSETS (81,463) 112,669
Property, plant and equipment, net - 181,446
Deferred income taxes - -
Investments-Third Party - 1,500
Investments in Subs (385,026) 50,408
Other assets (1) 43,151
--------------------------------
TOTAL ASSETS $(466,490) $ 389,174
================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) (25,088) 107,218
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (5,378) 25,983
Unsecured debt (130,528) 742,591
Other / Intercompany (201,020) 5,727
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 27,272
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (43,602) (539,481)
Retained earnings-Filing Date - (248,327)
Retained earnings-Post Filing Date - (24,546)
Pension adjustment - (135)
Accumulated translation adj. - -
Deferred compensation - (3)
--------------------------------
(43,603) (812,369)
Treasury stock at cost - (2,537)
--------------------------------
TOTAL STOCKHOLDERS' EQUITY (43,603) (814,906)
TOTAL LIABILITIES AND EQUITY $(466,490) $ 389,174
================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
8/31/2001(1) 9/30/01 MONTH MONTH MONTH MONTH
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2 $ 1 $ $ $ $
ROYALTY AND REVENUE PAYABLE -- --
NOTES PAYABLE - INSURANCE -- --
TAX PAYABLE: -- --
Federal Payroll Taxes -- --
State Payroll & Sales -- --
Ad Valorem Taxes -- --
Other Taxes -- --
TOTAL TAXES PAYABLE $ -- $ -- $ $ $ $
SECURED DEBT POST-PETITION -- --
ACCRUED INTEREST PAYABLE -- --
*ACCRUED PROFESSIONAL FEES: -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- --
2. Lease Operating Expenses/Capital -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2 $ 1 $ $ $ $
====================================================================================================================================
*Payment Requires Court Approval
(1) Represents the period 07/17/01 thru 08/31/01
MOR-4
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 9/30/01
------------------
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- -------- ----------- --------- ----------- ----------- -------------
0-30 $107,219 $105,518 $ 5 $ 34 $ 1,662 $ --
31-60 --
61-90 --
91 + --
-------- --------- --------- ----------- ----------- -------------
TOTAL $107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
---------
0-30 $ 50,234 $ 50,234 $ -- $ -- $ -- $ --
31-60 (764) (764) -- -- -- --
61-90 9,179 9,179 -- -- -- --
91 + 4,962 4,962 -- -- -- --
-------- ----------- -------- -------- -------- --------
TOTAL $ 63,611 $63,610,978 $ -- $ -- $ -- $ --
======== =========== ======== ======== ======== ========
(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
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE MONTH ENDING SEPTEMBER 30, 2001
STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS,
HOLDINGS, INC. INC. ENERGY, INC. INC.
MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ -- $ 23,943,367 $ 158,149 $ 1,311,018
TOTAL COST OF REVENUES -- 25,292,855 158,149 1,399,297
GROSS PROFIT $ -- $ (1,349,488) $ -- $ (88,279)
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (990) $ 707,114 $ -- $ 140,250
Insiders Compensation -- 188,763 -- --
Professional Fees -- 3,392,350 -- --
Other (Earnings in Joint Venture) -- 616,375 (616,375) --
TOTAL OPERATING EXPENSE $ (990) $ 4,904,602 $ (616,375) $ 140,250
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 990 $ (6,254,090) $ 616,375 $ (228,529)
INTEREST EXPENSE (includes amort of debt fees) (73,954) 2,321,833 -- 614,434
DEPRECIATION -- 2,155,512 -- 48,293
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ (73,954) $ 4,477,345 $ -- $ 662,727
===================================================================================================================================
NET INCOME BEFORE TAXES $ 74,944 $ (10,731,435) $ 616,375 $ (891,256)
INCOME TAXES -- 36,000 -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 74,944 $ (10,767,435) $ 616,375 $ (891,256)
===================================================================================================================================
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ (460,327) $ 1,122,478 $ 358,476 $ 2,936,623
TOTAL COST OF REVENUES -- 26,148 516,203 1,924,492
GROSS PROFIT $ (460,327) $ 1,096,330 $ (157,727) $ 1,012,131
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ -- $ 211,587 $ (74,946) $ 606,149
Insiders Compensation -- -- -- --
Professional Fees -- -- -- --
Other (Earnings in Joint Venture) -- -- -- --
TOTAL OPERATING EXPENSE $ -- $ 211,587 $ (74,946) $ 606,149
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (460,327) $ 884,743 $ (82,781) $ 405,982
INTEREST EXPENSE (includes amort of debt fees) 37,665 236,041 -- --
DEPRECIATION 23,000 485,795 -- 405,582
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 721,836 $ -- $ 405,582
===================================================================================================================================
NET INCOME BEFORE TAXES $ (520,992) $ 162,907 $ (82,781) $ 400
INCOME TAXES -- -- -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (520,992) $ 162,907 $ (82,781) $ 400
===================================================================================================================================
DEBTORS
MONTH ELIMINATIONS CONSOLIDATED
------------------ ------------------
REVENUES (MOR-1) $ 460,327 $ 29,830,111
TOTAL COST OF REVENUES 460,327 29,777,471
GROSS PROFIT $ -- $ 52,640
===========================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (465,887) 1,123,277
Insiders Compensation -- 188,763
Professional Fees -- 3,392,350
Other (Earnings in Joint Venture) -- --
TOTAL OPERATING EXPENSE $ (465,887) $ 4,704,390
===========================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 465,887 (4,651,750)
INTEREST EXPENSE (includes amort of debt fees) 465,887 3,601,906
DEPRECIATION -- 3,118,182
OTHER (INCOME) EXPENSES* -- --
OTHER ITEMS** -- --
TOTAL INT. DEPR & OTHER ITEMS $ 465,887 $ 6,720,088
===========================================================================================
NET INCOME BEFORE TAXES $ -- $ (11,371,838)
INCOME TAXES -- 36,000
===========================================================================================
NET INCOME (LOSS) (MOR-1) $ -- $ (11,407,838)
===========================================================================================
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
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 1,362,081.08 1,368,676.26 -- -- -- -- 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) 6,595.18 2,188.93 -- -- -- -- 8,784.11
------------ ------------ ------ ------ ------ ------ -------------
TOTAL RECEIPTS 6,595.18 2,188.93 -- -- -- -- 8,784.11
------------ ------------ ------ ------ ------ ------ -------------
(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 6,595.18 2,188.93 -- -- -- -- 8,784.11
23. CASH - END OF MONTH (MOR-2) 1,368,676.26 1,370,865.19 -- -- -- -- 1,370,865.19
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
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 6,595.18 2,188.93 -- -- -- -- 8,784.11
401(k) Plan Refund -- -- -- -- -- -- --
Cobra Insurance Payment -- -- -- -- -- -- --
Miscellaneous -- -- -- -- -- -- --
Royalty Owners Trust Account -- -- -- -- -- -- --
Emission Credits -- -- -- -- -- -- --
------------- -------- ------ ------ ------ ------ --------
TOTAL OTHER RECEIPTS 6,595.18 2,188.93 -- -- -- -- 8,784.11
============= ======== ====== ====== ====== ====== ========
18. OTHER DISBURSEMENTS:
Lease Operating Expense -- -- -- -- -- -- --
Workover Expense -- -- -- -- -- -- --
Capital Expenditures -- -- -- -- -- -- --
Revenue & Royalties -- -- -- -- -- -- --
Interest Payment -- -- -- -- -- -- --
Restricted Cash - Bond Funding -- -- -- -- -- -- --
Severance tax -- -- -- -- -- -- --
Pre-petition checks voided in current period -- -- -- -- -- -- --
------------- -------- ------ ------ ------ ------ --------
TOTAL OTHER DISBURSEMENTS -- -- -- -- -- -- --
============= --====== ====== ====== ====== ====== ========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
CASE NAME: STERLING CHEMICALS HOLDINGS, INC.
CASH RECEIPTS AND Chase Chase Total
DISBURSEMENTS 00100547125 00100535021 Debtor
----------------- ----------- ------------ ------------
1. CASH-BEGINNING OF MONTH -- 1,368,676.26 1,368,676.26
=========== ============ ============
RECEIPTS:
2. CASH SALES -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- --
4. LOANS & ADVANCES (attach list) -- -- --
5. SALE OF ASSETS -- -- --
6. OTHER (attach list) -- 2,188.93 2,188.93
----------- ------------ ------------
TOTAL RECEIPTS -- 2,188.93 2,188.93
----------- ------------ ------------
(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 -- 2,188.93 2,188.93
23. CASH - END OF MONTH (MOR-2) -- 1,370,865.19 1,370,865.19
MOR-7 *Applies to Individual debtor's only.
CASE NAME: STERLING CHEMICALS HOLDINGS, INC.
OTHER CASH RECEIPTS AND Chase Chase Total
DISBURSEMENTS: 00100547125 00100535021 Debtor
----------------------- ----------- ----------- --------
6. OTHER RECEIPTS:
Interest Income -- 2,188.93 2,188.93
401(k) Plan Refund -- -- --
Cobra Insurance Payment -- -- --
Miscellaneous -- -- --
Royalty Owners Trust Account -- -- --
Emission Credits -- -- --
--
--
--
--
--
----------- ----------- --------
TOTAL OTHER RECEIPTS -- 2,188.93 2,188.93
=========== =========== ========
18. OTHER DISBURSEMENTS:
Lease Operating Expense
Workover Expense
Capital Expenditures -- -- --
Revenue & Royalties
Interest Payment -- -- --
Restricted Cash - Bond Funding -- -- --
Severance tax
Pre-petition checks voided in current period -- -- --
----------- ----------- --------
TOTAL OTHER DISBURSEMENTS -- -- --
=========== =========== ========
MOR-7 ATTACHMENT
CASE NAME: Sterling Chemicals Holdings, Inc. CASE NUMBER: 01-37805-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
----------------
BANK NAME Chase Bk of TX Chase Bk of TX
ACCOUNT NUMBER 00100547125 0010535021
ACCOUNT TYPE Concentration Concentration TOTAL
-------------- ------------- -------------- ----------
BANK BALANCE $ -- $ 1,368,676 $1,368,676
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
OTHER --
------------- -------------- ------ ------ ------ ------ ------ ------ ----------
ADJUSTED BANK BALANCE $ -- $ 1,368,676 $ -- $ -- $ -- $ -- $ -- $ -- $1,368,676
============= ============== ====== ====== ====== ====== ====== ====== ==========
BEGINNING CASH - PER BOOKS $ -- $ 1,362,081 $1,362,081
RECEIPTS 6,595 6,595
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL) CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS --
------------- -------------- ------ ------ ------ ------ ------ ------ ----------
ENDING CASH - PER BOOKS $ -- $ 1,368,676 $ -- $ -- $ -- $ -- $ -- $ -- $1,368,676
============= ============== ====== ====== ====== ====== ====== ====== ==========
MOR-8
CASE NAME: Sterling Chemicals Holdings, Inc. CASE NUMBER: 01-37805-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
----------------
CLOSED
BANK NAME Chase Bk of Tx Chase Bk of Tx
ACCOUNT NUMBER 00100547125 0010535021
ACCOUNT TYPE Concentration Concentration TOTAL
-------------- ------------- -------------- ----------
BANK BALANCE $ -- $ 1,370,865 $1,370,865
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
OTHER --
------------- -------------- ------ ------ ------ ------ ------ ------ ----------
ADJUSTED BANK BALANCE $ -- $ 1,370,865 $ -- $ -- $ -- $ -- $ -- $ -- $1,370,865
============= ============== ====== ====== ====== ====== ====== ====== ==========
BEGINNING CASH - PER BOOKS $ -- $ 1,368,676 $1,370,865
RECEIPTS 2,189 2,189
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL) CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS --
------------- -------------- ------ ------ ------ ------ ------ ------ ----------
ENDING CASH - PER BOOKS $ -- $ 1,370,865 $ -- $ -- $ -- $ -- $ -- $ -- $1,370,865
============= ============== ====== ====== ====== ====== ====== ====== ==========
MOR-8
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
h91714ex99-2.txt
MONTHLY OPERATING REPORT F/STERLING CHEMICALS INC
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: SEPTEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/2001
--------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 36,458,061 $ 23,943,367 $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (5,663,895) $ (6,254,090) $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $ (12,537,900) $ (10,767,435) $ -- $ -- $ -- $ --
PAYMENTS TO INSIDERS (MOR-9) $ 173,179 $ 188,763 $ -- $ -- $ -- $ --
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ 11,243 $ -- $ -- $ -- $ --
TOTAL DISBURSEMENTS (MOR-7) $ 98,519,611 $ 60,972,958 $ -- $ -- $ -- $ --
***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
Page 3 of 15
10/18/01
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.
2 Automobile Liability $92,955 (AFCO)
3 Excess Liability $451,090 Annual - Half on 7/1/01;
Excess to $1 Million SIR 1/2 on 1/1/02.
4 Excess Liability Included
5 Excess Liability $295,000
6 Excess Liability $241,886
7 Excess Liability $109,210
8 Excess Liability $80,938
Page 4 of 15
10/18/01
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
10 Marine Terminal $27,000 (AFCO) Min. premium & deposit.
Operators Liability and
Charterer's Legal
Liability
11 Excess Marine Liability $57,375
12 Excess Marine Liability $21,250
13 Property Damage, Annual - Financed through AFCO.
Business Interruption $4.0M (est.)
and Boiler & Machinery
14 Directors & Officers $316,000 (15 mos.)
Liability
15 Excess Directors & $223,700 (15 mos.)
Officers Liability
16 Directors & Officers $115,000 (15 mos.)
Liability
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 10/1/02 Various
Depositor's Forgery Agreement. Ded. $50,000. 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 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
22 Fiduciary $10,000,000 National Union 1 year 8/21/02 Various
Ded. $250,000 per occurrence
23 Environmental $4,000,000 per loss 1 year 1/15/02 Loss Potential
Impairment Liability $8,000,000 aggregate ECS
(Petrochem & Fibers) (Indian Harbor)
24 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 & $14,450
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO)
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO)
20 Marine and Railroad Cargo $40,000 Annual Approx.
21 Duty Drawback Bond $2,875
22 Fiduciary $22,000 - Financed through Imperial.
23 Environmental $106,200 - Financed through AFCO.
Impairment Liability
(Petrochem & Fibers)
24 Closure/Post Closure $40,610
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.
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
STERLING CHEMICALS, INC. CASE #01-37806-H4-11
VENDOR AMOUNT ORDER
Puffer-Sweiven, Inc. $ 36,632.98 lien
Bank One $ 2,328.95 bank fees drafted out of lockbox acct
------------
TOTAL $ 38,961.93
============
SUMMARY
CIT Revolving Credit Facility $ --
Lien $ 36,632.98
Other $ 2,328.95
------------
TOTAL $ 38,961.93
============
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED SEPTEMBER 30, 2001
(In Thousands) (Unaudited)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,371 $ 1,222 $ - $ 296
Trade accounts receivable, net - 42,057 44 3,131
Other Receivables - 2,819 - -
Due from affiliates - 19,544 11,309 4,522
Inventories - 26,899 - 8,819
Prepaid expenses 9 2,585 - -
Deferred income tax benefit - - - -
------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,380 95,126 11,353 16,768
Property, plant and equipment, net - 127,479 3,325 6,310
Deferred income taxes - - - -
Investments-Third Party - 1,500 - -
Investments in Subs 35,059 95,073 4,955 -
Other assets 7,356 24,279 - 1,428
------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,795 $ 343,457 $ 19,633 $ 24,506
====================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 1 104,081 1,676 3,582
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 57,221
Secured Debt Accrued Interest * - 20,051 - 5,055
Unsecured debt 192,878 277,260 1,110 73,391
Other / Intercompany - 201,020 - -
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - 35
Less: Unearned compensation - (458) - 458
Redeemable preferred stock 27,272 (15,769) - 15,769
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 -
Additional paid-in capital (367,555) (229,904) - 9,676
Retained earnings-Filing Date 191,191 (215,021) 15,690 (138,587)
Retained earnings-Post Filing Date 8 (23,305) 1,156 (2,094)
Pension adjustment - (135) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
------------------------------------------------------------------------------------
(176,356) (468,293) 16,847 (131,005)
Treasury stock at cost - (2,537) - -
------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (176,356) (470,830) 16,847 (131,005)
TOTAL LIABILITIES AND EQUITY $ 43,795 $ 343,457 $ 19,633 $ 24,506
====================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 916 $ - $ 170
Trade accounts receivable, net - 3,366 992 5,095
Other Receivables - 4,350 - -
Due from affiliates 2,634 43,628 835 5,969
Inventories - - 104 1,713
Prepaid expenses (283) - - 16
Deferred income tax benefit - - - -
-----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,351 52,260 1,931 12,963
Property, plant and equipment, net - - - 44,332
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs - 297,229 3,118 -
Other assets 2,754 7,335 - -
----------------------------------------------------------------------------------
TOTAL ASSETS $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 13 19,774 463 2,716
Pre-Petition liabilities:
Notes Payable - Secured * 3,652 67,152 - -
Secured Debt Accrued Interest * 323 5,932 - -
Unsecured debt 840 264,992 170 62,478
Other / Intercompany - 5,727 -
Deferred income taxes - - - -
Common stock held by new ESOP - - - -
Less: Unearned compensation - - - -
Redeemable preferred stock - - - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 48 - -
Additional paid-in capital - 83,348 5,438 3,118
Retained earnings-Filing Date 779 (90,595) (876) (10,908)
Retained earnings-Post Filing Date (502) 446 (146) (109)
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------
277 (6,753) 4,416 (7,899)
Treasury stock at cost - - - -
----------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 277 (6,753) 4,416 (7,899)
TOTAL LIABILITIES AND EQUITY $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 3,975
Trade accounts receivable, net - 54,685
Other Receivables - 7,169
Due from affiliates (81,463) 6,978
Inventories - 37,535
Prepaid expenses - 2,327
Deferred income tax benefit - -
--------------------------------
TOTAL CURRENT ASSETS (81,463) 112,669
Property, plant and equipment, net - 181,446
Deferred income taxes - -
Investments-Third Party - 1,500
Investments in Subs (385,026) 50,408
Other assets (1) 43,151
--------------------------------
TOTAL ASSETS $(466,490) $ 389,174
================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) (25,088) 107,218
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (5,378) 25,983
Unsecured debt (130,528) 742,591
Other / Intercompany (201,020) 5,727
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 27,272
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (43,602) (539,481)
Retained earnings-Filing Date - (248,327)
Retained earnings-Post Filing Date - (24,546)
Pension adjustment - (135)
Accumulated translation adj. - -
Deferred compensation - (3)
--------------------------------
(43,603) (812,369)
Treasury stock at cost - (2,537)
--------------------------------
TOTAL STOCKHOLDERS' EQUITY (43,603) (814,906)
TOTAL LIABILITIES AND EQUITY $(466,490) $ 389,174
================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-037806-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
--------------------------------------------------------------------------------------------
8/31/2001(1) 9/30/01 MONTH MONTH MONTH MONTH
--------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 28,667 $ 34,262 $ 2,240 $ 807 $ 779 $ 1,029
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE - INSURANCE -- -- -- 19,409 -- --
TAX PAYABLE: -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales 48 33 -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes 925 1,550 -- -- -- 40
TOTAL TAXES PAYABLE $ 973 $ 1,583 $ -- $ -- $ -- $ 40
SECURED DEBT POST-PETITION 41,472 42,229 -- -- -- --
ACCRUED INTEREST PAYABLE 234 263 -- -- -- --
*ACCRUED PROFESSIONAL FEES: 2,000 4,000 -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs 22,593 21,744 -- -- 1 1,551
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 95,939 $ 104,081 $ 2,240 $ 20,216 $ 780 $ 2,620
==================================================================================================================================
*Payment Requires Court Approval
(1) Represents the period 07/17/01 thru 08/31/01
MOR-4
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 9/30/01
-----------------------
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- -------- ----------- --------- ----------- ----------- -------------
0-30 $107,219 $105,518 $ 5 $ 34 $ 1,662 $ --
31-60 -- --
61-90 -- --
91 + -- --
-------- -------- --------- ----------- ----------- -------------
TOTAL $107,219 $105,518 $ 5 $ 34 $ 1,662 $ --
======== ======== ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
-----
0-30 $ 50,234 $ 50,234 $ -- $ -- $ -- $ --
31-60 (764) (764) -- -- --
61-90 9,179 9,179 -- -- --
91 + 4,962 4,962 -- -- --
-------- ----------- --------- ----------- ----------- -------------
TOTAL $ 63,611 $63,610,978 -- $ -- $ -- $ --
======== =========== ========= =========== =========== =============
(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
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE MONTH ENDING SEPTEMBER 30, 2001
STATEMENT OF INCOME (LOSS)
-------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING
CHEMICALS CHEMICALS, CHEMICALS FIBERS, CHEMICALS
HOLDINGS, INC. INC. ENERGY, INC. INC. INT'L, INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 01-37809-H4-11
-------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 23,943,367 $ 158,149 $ 1,311,018 $ (460,327)
TOTAL COST OF REVENUES -- 25,292,855 158,149 1,399,297 --
GROSS PROFIT $ -- $ (1,349,488) $ -- $ (88,279) $ (460,327)
==============================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (990) $ 707,114 $ -- $ 140,250 $ --
Insiders Compensation -- 188,763 -- -- --
Professional Fees -- 3,392,350 -- -- --
Other (Earnings in Joint Venture) -- 616,375 (616,375) -- --
TOTAL OPERATING EXPENSE $ (990) $ 4,904,602 $ (616,375) $ 140,250 $ --
==============================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 990 $ (6,254,090) $ 616,375 $ (228,529) $ (460,327)
INTEREST EXPENSE (includes amort of debt fees) (73,954) 2,321,833 -- 614,434 37,665
DEPRECIATION -- 2,155,512 -- 48,293 23,000
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ (73,954) $ 4,477,345 $ -- $ 662,727 $ 60,665
==============================================================================================================================
NET INCOME BEFORE TAXES $ 74,944 $(10,731,435) $ 616,375 $ (891,256) $ (520,992)
INCOME TAXES -- 36,000 -- -- --
==============================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 74,944 $(10,767,435) $ 616,375 $ (891,256) $ (520,992)
==============================================================================================================================
----------------------------------------------------------------------------
STERLING STERLING PULP STERLING PULP DEBTORS
CANADA, CHEMICALS US, CHEMICALS,
INC. INC. INC.
01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ELIMINATIONS CONSOLIDATED
----------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 1,122,478 $ 358,476 $ 2,936,623 $ 460,327 $ 29,830,111
TOTAL COST OF REVENUES 26,148 516,203 1,924,492 460,327 29,777,471
GROSS PROFIT $ 1,096,330 $ (157,727) $ 1,012,131 $ -- $ 52,640
===========================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 211,587 $ (74,946) $ 606,149 $ (465,887) 1,123,277
Insiders Compensation -- -- -- -- 188,763
Professional Fees -- -- -- -- 3,392,350
Other (Earnings in Joint Venture) -- -- -- -- --
TOTAL OPERATING EXPENSE $ 211,587 $ (74,946) $ 606,149 $ (465,887) $ 4,704,390
===========================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 884,743 $ (82,781) $ 405,982 $ 465,887 (4,651,750)
INTEREST EXPENSE (includes amort of debt fees) 236,041 -- -- 465,887 3,601,906
DEPRECIATION 485,795 -- 405,582 -- 3,118,182
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 721,836 $ -- $ 405,582 $ 465,887 $ 6,720,088
===========================================================================================================================
NET INCOME BEFORE TAXES $ 162,907 $ (82,781) $ 400 $ -- $(11,371,838)
INCOME TAXES -- -- -- -- 36,000
===========================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 162,907 $ (82,781) $ 400 $ -- $(11,407,838)
===========================================================================================================================
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
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-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 9,346,545.76 1,430,565.35 -- -- -- -- 9,346,545.76
============= ============= ====== ====== ====== ====== ==============
RECEIPTS:
2. CASH SALES -- -- -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 40,926,867.83 20,950,660.69 -- -- -- -- 61,877,528.52
4. LOANS & ADVANCES - CIT REVOLVER 32,400,000.00 30,000,000.00 -- -- -- -- 62,400,000.00
5. SALE OF ASSETS -- -- -- -- -- -- --
6. OTHER (attach list) 17,276,762.54 9,809,131.89 -- -- -- -- 27,085,894.43
------------- ------------- ------ ------ ------ ------ --------------
TOTAL RECEIPTS 90,603,630.37 60,759,792.58 -- -- -- -- 151,363,422.95
------------- ------------- ------ ------ ------ ------ --------------
(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 2,731,079.75 1,885,986.68 -- -- -- -- 4,617,066.43
8. PAYROLL TAXES PAID 1,296,961.07 929,630.57 -- -- -- -- 2,226,591.64
9. SALES, USE & OTHER TAXES PAID 32,514.08 59,392.49 -- -- -- -- 91,906.57
10.SECURED/RENTAL/LEASES 150,960.96 223,714.93 -- -- -- -- 374,675.89
11.UTILITIES 2,879,979.47 2,190,006.29 -- -- -- -- 5,069,985.76
12.INSURANCE 1,469,518.03 830,147.69 -- -- -- -- 2,299,665.72
13.INVENTORY PURCHASES 11,912,436.19 10,899,472.59 -- -- -- -- 22,811,908.78
14.VEHICLE EXPENSES -- -- -- -- -- -- --
15.TRAVEL & ENTERTAINMENT 39,341.25 31,508.38 -- -- -- -- 70,849.63
16.REPAIRS, MAINTENANCE & SUPPLIES 1,279,095.10 1,162,418.09 -- -- -- -- 2,441,513.19
17.ADMINISTRATIVE & SELLING 2,731,485.60 1,698,951.04 -- -- -- -- 4,430,436.64
18.OTHER (attach list) 73,996,239.28 41,050,485.58 -- -- -- -- 115,046,724.86
TOTAL DISBURSEMENTS FROM OPERATIONS 98,519,610.78 60,961,714.33 -- -- -- -- 159,481,325.11
19.PROFESSIONAL FEES -- 11,243.27 -- -- -- -- 11,243.27
20.U.S. TRUSTEE FEES -- -- -- -- -- -- --
21.OTHER REORGANIZATION EXPENSES
(attach list) -- -- -- -- -- -- --
------------- ------------- ------ ------ ------ ------ --------------
TOTAL DISBURSEMENTS 98,519,610.78 60,972,957.60 -- -- -- -- 159,492,568.38
============= ============= ====== ====== ====== ====== ==============
22.NET CASH FLOW (7,915,980.41) (213,165.02) -- -- -- -- (8,129,145.43)
23.CASH - END OF MONTH (MOR-2) 1,430,565.35 1,217,400.33 -- -- -- -- 1,217,400.33
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
per MOR-7 1,430,565.35 1,217,400.33
per 211 trial balance 2,156,824.40 1,222,225.02
------------ ------------
difference 726,259.05 4,824.69
g/l acct 10123 - not a good account, s/b zero 794.70 794.70
g/l acct 10131 - account was closed before filing, bal s/b zero 4,029.99 4,029.99
g/l acct 10199 - cash overdraft reclass of outstanding checks 721,434.36 0.00
------------ ------------
reconciled difference 726,259.05 4,824.69
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-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 -- 80,301.95 80,301.95
401(k) Plan Refund -- -- --
Cobra Insurance Payment -- -- --
Miscellaneous 323,831.65 156,450.43 480,282.08
Royalty Owners Trust Account -- -- --
Emission Credits -- -- --
Account Transfers 16,952,930.89 8,360,379.51 25,313,310.40
Intercompany Transfers -- 1,212,000.00 1,212,000.00
------------- ------------- --------- ------- ------- ------ ------------
TOTAL OTHER RECEIPTS 17,276,762.54 9,809,131.89 -- -- -- -- 27,085,894.43
============= ============= ========= ======= ===== ======= ==============
18. OTHER DISBURSEMENTS:
Lease Operating Expense -- -- --
Workover Expense -- -- --
Capital Expenditures 157,217.00 352,420.00 509,637.00
Revenue & Royalties -- -- --
Interest Payment -- -- --
Employee Benefits 1,716,761.23 1,923,632.28 3,640,393.51
Severance tax -- -- --
Pre-petition checks voided
in current period (30,000.00) -- (30,000.00)
Account Transfers 16,952,930.89 8,360,379.51 25,313,310.40
CIT Revolver Payments 51,857,689.92 24,100,472.04 75,958,161.96
Intercompany Transfers 3,341,640.24 6,313,581.75 9,655,221.99
------------- ------------- --------- ------- ------- ------ --------------
TOTAL OTHER DISBURSEMENTS 73,996,239.28 41,050,485.58 -- -- -- -- 115,046,724.86
============= ============= ========= ======= ===== ======= ==============
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
CASH RECEIPTS AND Chase Chase Chase Chase Chase
DISBURSEMENTS 00103275427 00101824317 00103316882 103405743 6301810002508
----------------- --------------- --------------- --------------- --------------- ---------------
1. CASH-BEGINNING OF MONTH -- 253,905.22 242,855.17 1,047,489.29 (721,434.36)
=============== =============== =============== =============== ===============
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 14,095,502.14
4. LOANS & ADVANCES - CIT REVOLVER 30,000,000.00
5. SALE OF ASSETS
6. OTHER (attach list) -- -- 1,991,316.95 2,500,000.00 3,960,402.72
--------------- --------------- --------------- --------------- ---------------
TOTAL RECEIPTS -- 14,095,502.14 31,991,316.95 2,500,000.00 3,960,402.72
--------------- --------------- --------------- --------------- ---------------
(Withdrawal)Contribution by
Individual Debtor MFR-2* N/A N/A N/A N/A N/A
=============== =============== =============== =============== ===============
DISBURSEMENTS:
7. NET PAYROLL -- -- -- 1,885,986.68 --
8. PAYROLL TAXES PAID 929,630.57
9. SALES, USE & OTHER TAXES PAID 59,392.49
10. SECURED/RENTAL/LEASES 223,714.93
11. UTILITIES 2,190,006.29
12. INSURANCE 6,685.05 823,462.64
13. INVENTORY PURCHASES 10,899,472.59
14. VEHICLE EXPENSES
15. TRAVEL & ENTERTAINMENT 31,508.38
16. REPAIRS, MAINTENANCE & SUPPLIES 1,162,418.09
17. ADMINISTRATIVE & SELLING 38,147.29 1,660,803.75
18. OTHER (attach list) -- 13,097,108.41 18,714,104.50 -- 635,932.25
--------------- --------------- --------------- --------------- ---------------
TOTAL DISBURSEMENTS FROM OPERATIONS -- 13,097,108.41 31,907,808.21 2,815,617.25 4,537,840.04
=============== =============== =============== =============== ===============
19. PROFESSIONAL FEES -- -- -- -- 11,243.27
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES
(attach list) -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
TOTAL DISBURSEMENTS -- 13,097,108.41 31,907,808.21 2,815,617.25 4,549,083.31
=============== =============== =============== =============== ===============
22. NET CASH FLOW -- 998,393.73 83,508.74 (315,617.25) (588,680.59)
23. CASH - END OF MONTH (MOR-2) -- 1,252,298.95 326,363.91 731,872.04 (1,310,114.95)
CASH RECEIPTS AND Chase Chase Wells Fargo Bank One Total
DISBURSEMENTS 6301810036508 6301810028508 4496870106 5561833 Debtor
----------------- --------------- --------------- --------------- --------------- ---------------
1. CASH-BEGINNING OF MONTH -- -- 499,015.00 108,735.03 1,430,565.35
=============== =============== =============== =============== ===============
RECEIPTS:
2. CASH SALES -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 6,855,158.55 20,950,660.69
4. LOANS & ADVANCES - CIT REVOLVER 30,000,000.00
5. SALE OF ASSETS --
6. OTHER (attach list) 1,113,228.11 7,431.73 80,301.95 156,450.43 9,809,131.89
--------------- --------------- --------------- --------------- ---------------
TOTAL RECEIPTS 1,113,228.11 7,431.73 80,301.95 7,011,608.98 60,759,792.58
--------------- --------------- --------------- --------------- ---------------
(Withdrawal)Contribution by
Individual Debtor MFR-2* N/A N/A N/A N/A N/A
=============== =============== =============== =============== ===============
DISBURSEMENTS:
7. NET PAYROLL -- -- -- -- 1,885,986.68
8. PAYROLL TAXES PAID 929,630.57
9. SALES, USE & OTHER TAXES PAID 59,392.49
10. SECURED/RENTAL/LEASES 223,714.93
11. UTILITIES 2,190,006.29
12. INSURANCE 830,147.69
13. INVENTORY PURCHASES 10,899,472.59
14. VEHICLE EXPENSES --
15. TRAVEL & ENTERTAINMENT 31,508.38
16. REPAIRS, MAINTENANCE & SUPPLIES 1,162,418.09
17. ADMINISTRATIVE & SELLING 1,698,951.04
18. OTHER (attach list) 1,113,228.11 7,431.73 579,316.95 6,903,363.63 41,050,485.58
--------------- --------------- --------------- --------------- ---------------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,113,228.11 7,431.73 579,316.95 6,903,363.63 60,961,714.33
=============== =============== =============== =============== ===============
19. PROFESSIONAL FEES -- -- -- -- 11,243.27
20. U.S. TRUSTEE FEES -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES
(attach list) -- -- -- -- --
--------------- --------------- --------------- --------------- ---------------
TOTAL DISBURSEMENTS 1,113,228.11 7,431.73 579,316.95 6,903,363.63 60,972,957.60
=============== =============== =============== =============== ===============
22. NET CASH FLOW -- -- (499,015.00) 108,245.35 (213,165.02)
23. CASH - END OF MONTH (MOR-2) -- -- -- 216,980.38 1,217,400.33
MOR-7
* Applies to Individual debtor's only.
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
Royalty Owners Trust Account
Emission Credits
Account Transfers 779,316.95 2,500,000.00 3,960,402.72
Intercompany Transfers 1,212,000.00
----------- ------------- ------------- ------------ ------------
TOTAL OTHER RECEIPTS -- -- 1,991,316.95 2,500,000.00 3,960,402.72
=========== ============= ============= ============ ============
18. OTHER DISBURSEMENTS:
Lease Operating Expense
Workover Expense
Capital Expenditures 352,420.00
Revenue & Royalties
Interest Payment
Employee Benefits 519,460.19 283,512.25
Severance tax
Pre-petition checks voided in current period
Account Transfers 7,781,062.56
CIT Revolver Payments 13,097,108.41 4,100,000.00
Intercompany Transfers 6,313,581.75
----------- ----------- ------------- ------------ ------------
TOTAL OTHER DISBURSEMENTS -- 13,097,108.41 18,714,104.50 -- 635,932.25
=========== ============= ============= ============ ============
OTHER CASH RECEIPTS AND Chase Chase Wells Fargo Bank One Total
DISBURSEMENTS: 6301810036508 6301810028508 4496870106 5561833 Debtor
-------------- ------------- ------------- -------------- ------------ -------------
6. OTHER RECEIPTS:
Interest Income 80,301.95 80,301.95
401(k) Plan Refund --
Cobra Insurance Payment --
Miscellaneous 156,450.43 156,450.43
Royalty Owners Trust Account --
Emission Credits --
Account Transfers 1,113,228.11 7,431.73 8,360,379.51
Intercompany Transfers 1,212,000.00
------------ ----------- ------------ ------------ -------------
TOTAL OTHER RECEIPTS 1,113,228.11 7,431.73 80,301.95 156,450.43 9,809,131.89
============ =========== ============ ============ =============
18. OTHER DISBURSEMENTS:
Lease Operating Expense --
Workover Expense --
Capital Expenditures 352,420.00
Revenue & Royalties --
Interest Payment --
Employee Benefits 1,113,228.11 7,431.73 1,923,632.28
Severance tax --
Pre-petition checks voided in
current period --
Account Transfers 579,316.95 8,360,379.51
CIT Revolver Payments 6,903,363.63 24,100,472.04
Intercompany Transfers 6,313,581.75
------------ ----------- ------------ ------------ -------------
TOTAL OTHER DISBURSEMENTS 1,113,228.11 7,431.73 579,316.95 6,903,363.63 41,050,485.58
============ =========== ============ ============ =============
MOR-7 ATTACHMENT
CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
---------------------------------
BANK NAME Chase Bk of TX Chase Bk of TX Chase Bk of TX Chase Bk of TX Chase Bk of DE
ACCOUNT NUMBER 00103275427 00101824317 00103316882 00103405743 6301810036508
--------------
ACCOUNT TYPE Special Disb Fund AR Wires Concentration Payroll Contr. Disb.
-------------- ------------------ --------------- --------------- --------------- ---------------
BANK BALANCE $ -- $ 253,905 $ 242,855 $ 674,712 $ --
DEPOSIT IN TRANSIT
OUTSTANDING CHECKS (32,580) (700,174)
OTHER 405,357 (21,261)
--------------- --------------- --------------- --------------- ---------------
ADJUSTED BANK BALANCE $ -- $ 253,905 $ 242,855 $ 1,047,489 $ (721,434)
=============== =============== =============== =============== ===============
BEGINNING CASH - PER BOOKS $ 7,590 $ 191,897 $ 133,791 $ 1,125,530 $ (229)
RECEIPTS 33,546,460 32,400,000
TRANSFERS BETWEEN ACCOUNTS (7,590) (5,579,391) 3,950,000 4,602,251
(WITHDRAWAL) CONTRIBUTION-
BY INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS -- (33,484,452) (26,711,545) (4,028,041) (5,323,457)
--------------- --------------- --------------- --------------- ---------------
ENDING CASH - PER BOOKS $ -- $ 253,905 $ 242,855 $ 1,047,489 $ (721,435)
=============== =============== =============== =============== ===============
BANK NAME Chase Bk of Del Chase Bk of Del Wells Fargo Bank One
ACCOUNT NUMBER 6301810036508 6301810028508 4496870106 5561833
--------------
ACCOUNT TYPE Sal Ben Disb Flex Ben Disb Concentration Lockbox TOTAL
-------------- --------------- --------------- --------------- --------------- ---------------
BANK BALANCE $ -- $ -- $ 578,842 $ 108,738 $ 1,859,053
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS (732,754)
OTHER (79,827) 304,269
--------------- --------------- --------------- --------------- ---------------
ADJUSTED BANK BALANCE $ -- $ -- $ 499,015 $ 108,738 $ 1,430,569
=============== =============== =============== =============== ===============
BEGINNING CASH - PER BOOKS $ -- $ -- $ 7,499,015 $ 388,951 $ 9,346,545
RECEIPTS 8,404,240 74,350,700
TRANSFERS BETWEEN ACCOUNTS 681,060 12,030 (7,000,000) (3,341,640)
(WITHDRAWAL) CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS (681,060) (12,030) -- (8,684,456) (78,925,041)
--------------- --------------- --------------- --------------- ---------------
ENDING CASH - PER BOOKS $ -- $ -- $ 499,015 $ 108,735 $ 1,430,564
=============== =============== =============== =============== ===============
MOR-8
CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
---------------------------------
CLOSED
BANK NAME Chase Bk of TX Chase Bk of TX Chase Bk of TX Chase Bk of TX Chase Bk of DE
ACCOUNT NUMBER 00103275427 00101824317 00103316882 00103405743 6301810036508
--------------
ACCOUNT TYPE Special Disb Fund AR Wires Concentration Payroll Contr. Disb.
------------ ----------------- --------------- --------------- -------------- --------------
BANK BALANCE $ -- $ 1,252,299 $ 326,369 $ 298,613 $ --
DEPOSIT IN TRANSIT
OUTSTANDING CHECKS (19,318) (1,288,854)
OTHER (5) 452,577 (21,261)
------------- ------------- ------------ ------------ ------------
ADJUSTED BANK BALANCE $ -- $ 1,252,299 $ 326,364 $ 731,872 $ (1,310,115)
============= ============= ============ ============ ============
BEGINNING CASH - PER BOOKS $ -- $ 253,905 $ 242,855 $ 1,047,489 $ (721,435)
RECEIPTS 14,095,502 30,000,000
TRANSFERS BETWEEN ACCOUNTS -- (12,103,328) 2,500,000 3,960,403
(WITHDRAWAL) CONTRIBUTION-
BY INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS -- (13,097,108) (17,813,163) (2,815,617) (4,549,083)
------------- ------------- ------------ ------------ ------------
ENDING CASH - PER BOOKS $ -- $ 1,252,299 $ 326,364 $ 731,872 $ (1,310,115)
============= ============= ============ ============ ============
CLOSED
BANK NAME Chase Bk of Del Chase Bk of Del Wells Fargo Bank One
ACCOUNT NUMBER 6301810036508 6301810028508 4496870106 5561833
--------------
ACCOUNT TYPE Sal Ben Disb Flex Ben Disb Concentration Lockbox TOTAL
------------ --------------- --------------- ------------- ------------ ------------
BANK BALANCE $ -- $ -- $ -- $ 214,655 $ 2,091,935
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS (1,308,172)
OTHER 2,325 433,636
------------- ------------- ------------- ------------ ------------
ADJUSTED BANK BALANCE $ -- $ -- $ -- $ 216,980 $ 1,217,399
============= ============= ============= ============ ============
BEGINNING CASH - PER BOOKS $ -- $ -- $ 499,015 $ 108,735 $ 1,430,564
RECEIPTS 80,302 7,011,609 51,187,413
TRANSFERS BETWEEN ACCOUNTS 1,113,228 7,432 (579,317) (5,101,582)
(WITHDRAWAL) CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS (1,113,228) (7,432) -- (6,903,364) (46,298,995)
------------- ------------- ------------- ------------ ------------
ENDING CASH - PER BOOKS $ -- $ -- $ -- $ 216,980 $ 1,217,399
============= ============= ============= ============ ============
MOR-8
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 31,250 $-- $-- $-- $-- $ 78,125
2. Frank Diassi/Chairman of Board/Bonus -- 23,438
3. Frank Diassi/Chairman of Board/Expenses 521 1,741 -- -- -- -- 2,262
4. David Elkins/President/Salary 43,750 29,167 -- -- -- -- 72,917
5. David Elkins/President/Bonus -- 21,875
6. David Elkins/President/Expenses 5,013 35 -- -- -- -- 5,048
7. Richard Crump/Exec VP Opers/Salary 37,500 25,000 -- -- -- -- 62,500
8. Richard Crump/Exec VP Opers/Bonus -- 18,750
9. Richard Crump/Exec VP Opers/Expense 2,192 2,939 -- -- -- -- 5,131
10. Paul Vanderhoven/VP Finance & CFO/Salary 25,000 16,667 -- -- -- -- 41,667
11. Paul Vanderhoven/VP Finance & CFO/Bonus -- 10,000
12. Paul Vanderhoven/VP Finance & CFO/Expense -- 5,573
13. Robert Roten/Former Pres & Board Member/SERP 2,328 2,328 -- -- -- -- 4,656
14. Robert Roten/Former Pres & Board
Member/Consulting fee 10,000 -- -- -- -- -- 10,000
-------- -------- --- --- --- --- --------
TOTAL INSIDERS (MOR-1) $173,179 $188,763 $-- $-- $-- $-- $282,306
======== ======== === === === === ========
PROFESSIONALS FILING TO
NAME/ORDER DATE 8/31/2001(1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE
--------------------------------- ------------ --------- --------- --------- --------- --------- ----------
1. Logan & Company, Inc. $ -- $ 11,243 $ -- $ -- $ -- $ -- $11,243.00
2. -- -- -- -- -- -- --
3. -- -- -- -- -- -- --
4. -- -- -- -- -- -- --
5. -- -- -- -- -- -- --
6. -- -- -- -- -- -- --
------------ --------- --------- --------- --------- --------- ---------
TOTAL PROFESSIONALS (MOR-1) $ -- $ 11,243 $ -- $ -- $ -- $ -- $11,243.00
============ ========= ========= ========= ========= ========= ==========
(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
h91714ex99-3.txt
MONTLY OPERATING REPORT F/STERLING CHEM ENERGY INC
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: SEPTEMBER YEAR: 2001
MONTH 7/16/01-8/31/01
--------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 327,939 $ 158,149 $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 539,842 $ 616,375 $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $ 539,842 $ 616,375 $ -- $ -- $ -- $ --
PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
TOTAL DISBURSEMENTS (MOR-7) $1,045,517 $ 2,311,319 $ -- $ -- $ -- $ --
***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? NO If so, describe
--------------------------------------------------------------------------------
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
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
Page 3 of 14
10/18/01
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.
2 Automobile Liability $92,955 (AFCO)
3 Excess Liability $451,090 Annual - Half on 7/1/01;
Excess to $1 Million SIR 1/2 on 1/1/02.
4 Excess Liability Included
5 Excess Liability $295,000
6 Excess Liability $241,886
7 Excess Liability $109,210
8 Excess Liability $80,938
Page 4 of 14
10/18/01
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
10 Marine Terminal $27,000 (AFCO) Min. premium & deposit.
Operators Liability and
Charterer's Legal
Liability
11 Excess Marine Liability $57,375
12 Excess Marine Liability $21,250
13 Property Damage, Annual - Financed through AFCO.
Business Interruption $4.0M (est.)
and Boiler & Machinery
14 Directors & Officers $316,000 (15 mos.)
Liability
15 Excess Directors & $223,700 (15 mos.)
Officers Liability
16 Directors & Officers $115,000 (15 mos.)
Liability
Page 5 of 14
10/18/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/02 Various
Depositor's Forgery Agreement. Ded. $50,000. 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 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
22 Fiduciary $10,000,000 National Union 1 year 8/21/02 Various
Ded. $250,000 per occurrence
23 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/02 Loss Potential
Liability (Petrochem & $8,000,000 aggregate (Indian Harbor)
Fibers)
24 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 & $14,450
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO)
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO)
20 Marine and Railroad Cargo $40,000 Annual Approx.
21 Duty Drawback Bond $2,875
22 Fiduciary $22,000 - Financed through Imperial.
23 Environmental Impairment $106,200 - Financed through AFCO.
Liability (Petrochem &
Fibers)
24 Closure/Post Closure $40,610
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.
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED SEPTEMBER 30, 2001
(IN THOUSANDS) (UNAUDITED)
----------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
----------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,371 $ 1,222 $ -- $ 296
Trade accounts receivable, net -- 42,057 44 3,131
Other Receivables -- 2,819 -- --
Due from affiliates -- 19,544 11,309 4,522
Inventories -- 26,899 -- 8,819
Prepaid expenses 9 2,585 -- --
Deferred income tax benefit -- -- -- --
--------- --------- --------- ---------
TOTAL CURRENT ASSETS 1,380 95,126 11,353 16,768
Property, plant and equipment, net -- 127,479 3,325 6,310
Deferred income taxes -- -- -- --
Investments-Third Party -- 1,500 -- --
Investments in Subs 35,059 95,073 4,955 --
Other assets 7,356 24,279 -- 1,428
--------- --------- --------- ---------
TOTAL ASSETS $ 43,795 $ 343,457 $ 19,633 $ 24,506
========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 1 104,081 1,676 3,582
Pre-Petition liabilities:
Notes Payable - Secured * -- 227,848 -- 57,221
Secured Debt Accrued Interest * -- 20,051 -- 5,055
Unsecured debt 192,878 277,260 1,110 73,391
Other / Intercompany -- 201,020 -- --
Deferred income taxes -- -- -- --
Common stock held by new ESOP -- 254 -- 35
Less: Unearned compensation -- (458) -- 458
Redeemable preferred stock 27,272 (15,769) -- 15,769
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- 75 1 --
Additional paid-in capital (367,555) (229,904) -- 9,676
Retained earnings-Filing Date 191,191 (215,021) 15,690 (138,587)
Retained earnings-Post Filing Date 8 (23,305) 1,156 (2,094)
Pension adjustment -- (135) -- --
Accumulated translation adj -- -- -- --
Deferred compensation -- (3) -- --
--------- --------- --------- ---------
(176,356) (468,293) 16,847 (131,005)
Treasury stock at cost -- (2,537) -- --
--------- --------- --------- ---------
TOTAL STOCKHOLDERS' EQUITY (176,356) (470,830) 16,847 (131,005)
TOTAL LIABILITIES AND EQUITY $ 43,795 $ 343,457 $ 19,633 $ 24,506
========= ========= ========= =========
$ -- $ -- $ -- $ --
-------------------------------------------------------------------------
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
-------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ -- $ 916 $ -- $ 170
Trade accounts receivable, net -- 3,366 992 5,095
Other Receivables -- 4,350 -- --
Due from affiliates 2,634 43,628 835 5,969
Inventories -- -- 104 1,713
Prepaid expenses (283) -- -- 16
Deferred income tax benefit -- -- -- --
--------- --------- --------- ---------
TOTAL CURRENT ASSETS 2,351 52,260 1,931 12,963
Property, plant and equipment, net -- -- -- 44,332
Deferred income taxes -- -- -- --
Investments-Third Party -- -- -- --
Investments in Subs -- 297,229 3,118 --
Other assets 2,754 7,335 -- --
--------- --------- --------- ---------
TOTAL ASSETS $ 5,105 $ 356,824 $ 5,049 $ 57,295
========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 13 19,774 463 2,716
Pre-Petition liabilities:
Notes Payable - Secured * 3,652 67,152 -- --
Secured Debt Accrued Interest * 323 5,932 -- --
Unsecured debt 840 264,992 170 62,478
Other / Intercompany -- 5,727 -- --
Deferred income taxes -- -- -- --
Common stock held by new ESOP -- -- -- --
Less: Unearned compensation -- -- -- --
Redeemable preferred stock -- -- -- --
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -- 48 -- --
Additional paid-in capital -- 83,348 5,438 3,118
Retained earnings-Filing Date 779 (90,595) (876) (10,908)
Retained earnings-Post Filing Date (502) 446 (146) (109)
Pension adjustment -- -- -- --
Accumulated translation adj -- -- -- --
Deferred compensation -- -- -- --
--------- --------- --------- ---------
277 (6,753) 4,416 (7,899)
Treasury stock at cost -- -- -- --
--------- --------- --------- ---------
TOTAL STOCKHOLDERS' EQUITY 277 (6,753) 4,416 (7,899)
TOTAL LIABILITIES AND EQUITY $ 5,105 $ 356,824 $ 5,049 $ 57,295
========= ========= ========= =========
$ -- $ -- $ -- $ --
---------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
---------------------------------
Current Assets:
Cash and cash equivalents $ -- $ 3,975
Trade accounts receivable, net -- 54,685
Other Receivables -- 7,169
Due from affiliates (81,463) 6,978
Inventories -- 37,535
Prepaid expenses -- 2,327
Deferred income tax benefit -- --
--------- ---------
TOTAL CURRENT ASSETS (81,463) 112,669
Property, plant and equipment, net -- 181,446
Deferred income taxes -- --
Investments-Third Party -- 1,500
Investments in Subs (385,026) 50,408
Other assets (1) 43,151
--------- ---------
TOTAL ASSETS $(466,490) $ 389,174
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) (25,088) 107,218
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (5,378) 25,983
Unsecured debt (130,528) 742,591
Other / Intercompany (201,020) 5,727
Deferred income taxes -- --
Common stock held by new ESOP -- 289
Less: Unearned compensation -- --
Redeemable preferred stock -- 27,272
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (43,602) (539,481)
Retained earnings-Filing Date -- (248,327)
Retained earnings-Post Filing Date -- (24,546)
Pension adjustment -- (135)
Accumulated translation adj -- --
Deferred compensation -- (3)
--------- ---------
(43,603) (812,369)
Treasury stock at cost -- (2,537)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY (43,603) (814,906)
TOTAL LIABILITIES AND EQUITY $(466,490) $ 389,174
========= =========
$ -- $ --
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
8/31/2001(1) MONTH MONTH MONTH MONTH MONTH
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 2,240 $ 1,676 $ -- $ -- $ -- $ --
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE - INSURANCE -- -- -- -- -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- -- -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes -- -- -- -- -- --
TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ --
SECURED DEBT POST-PETITION -- -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- -- -- --
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2,240 $ 1,676 $ -- $ -- $ -- $ --
====================================================================================================================================
*Payment Requires Court Approval.
(1) Represents the period 07/17/01 thru 08/31/01
MOR-4
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 9/30/01
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- ----- ----------- --------- ----------- ----------- -------------
0-30 $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
31-60 --
61-90 --
91 + --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
========== ========== ========== ========== ========== ==========
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
-----
0-30 $ 50,234 $ 50,234 $ -- $ -- $ -- $ --
31-60 (764) (764) -- -- --
61-90 9,179 9,179 -- -- --
91 + 4,962 4,962 -- -- --
---------- ----------- ---------- ---------- ---------- ----------
TOTAL $ 63,611 $63,610,978 $ -- $ -- $ -- $ --
========== =========== ========== ========== ========== ==========
(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
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE MONTH ENDING SEPTEMBER 30, 2001
STATEMENT OF INCOME (LOSS)
------------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING
CHEMICALS CHEMICALS, CHEMICALS FIBERS, CHEMICALS
HOLDINGS, INC. INC. ENERGY, INC. INC. INT'L, INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 01-37809-H4-11
------------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 23,943,367 $ 158,149 $ 1,311,018 $ (460,327)
TOTAL COST OF REVENUES -- 25,292,855 158,149 1,399,297 --
GROSS PROFIT $ -- $ (1,349,488) $ -- $ (88,279) $ (460,327)
====================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (990) $ 707,114 $ -- $ 140,250 $ --
Insiders Compensation -- 188,763 -- -- --
Professional Fees -- 3,392,350 -- -- --
Other (Earnings in Joint Venture) -- 616,375 (616,375) -- --
TOTAL OPERATING EXPENSE $ (990) $ 4,904,602 $ (616,375) $ 140,250 $ --
====================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 990 $ (6,254,090) $ 616,375 $ (228,529) $ (460,327)
INTEREST EXPENSE (includes amort of debt fees) (73,954) 2,321,833 -- 614,434 37,665
DEPRECIATION -- 2,155,512 -- 48,293 23,000
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ (73,954) $ 4,477,345 $ -- $ 662,727 $ 60,665
====================================================================================================================================
NET INCOME BEFORE TAXES $ 74,944 $ (10,731,435) $ 616,375 $ (891,256) $ (520,992)
INCOME TAXES -- 36,000 -- -- --
====================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 74,944 $ (10,767,435) $ 616,375 $ (891,256) $ (520,992)
====================================================================================================================================
-------------------------------------------------------------------------------
STERLING STERLING PULP STERLING PULP DEBTORS
CANADA, CHEMICALS US, CHEMICALS,
INC. INC. INC.
01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ELIMINATIONS CONSOLIDATED
-------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 1,122,478 $ 358,476 $ 2,936,623 $ 460,327 $ 29,830,111
TOTAL COST OF REVENUES 26,148 516,203 1,924,492 460,327 29,777,471
GROSS PROFIT $ 1,096,330 $ (157,727) $ 1,012,131 $ -- $ 52,640
=================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 211,587 $ (74,946) $ 606,149 $ (465,887) 1,123,277
Insiders Compensation -- -- -- -- 188,763
Professional Fees -- -- -- -- 3,392,350
Other (Earnings in Joint Venture) -- -- -- -- --
TOTAL OPERATING EXPENSE $ 211,587 $ (74,946) $ 606,149 $ (465,887) $ 4,704,390
=================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 884,743 $ (82,781) $ 405,982 $ 465,887 (4,651,750)
INTEREST EXPENSE (includes amort of debt fees) 236,041 -- -- 465,887 3,601,906
DEPRECIATION 485,795 -- 405,582 -- 3,118,182
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 721,836 $ -- $ 405,582 $ 465,887 $ 6,720,088
=================================================================================================================================
NET INCOME BEFORE TAXES $ 162,907 $ (82,781) $ 400 $ -- $(11,371,838)
INCOME TAXES -- -- -- -- 36,000
=================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 162,907 $ (82,781) $ 400 $ -- $(11,407,838)
=================================================================================================================================
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
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-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 100.00 100.00 -- -- -- -- 100.00
============ ============ ====== ===== ====== ===== ============
RECEIPTS:
2. CASH SALES -- -- -- -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 120,876.29 98,737.05 219,613.34
4. LOANS & ADVANCES (attach list) -- -- --
5. SALE OF ASSETS -- -- --
6. OTHER (attach list) 924,640.24 2,212,581.75 3,137,221.99
------------ ------------ ------ ----- ------ ----- ------------
TOTAL RECEIPTS 1,045,516.53 2,311,318.80 -- -- -- -- 3,356,835.33
------------ ------------ ------ ----- ------ ----- ------------
(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 924,640.24 2,212,581.75 3,137,221.99
12. INSURANCE -- -- --
13. INVENTORY PURCHASES -- -- --
14. VEHICLE EXPENSES -- -- --
15. TRAVEL & ENTERTAINMENT -- -- --
16. REPAIRS, MAINTENANCE & SUPPLIES -- -- --
17. ADMINISTRATIVE & SELLING -- -- --
18. OTHER (attach list) 120,876.29 98,737.05 219,613.34
------------ ------------ ------ ----- ------ ----- ------------
TOTAL DISBURSEMENTS FROM OPERATIONS 1,045,516.53 2,311,318.80 -- -- -- -- 3,356,835.33
============ ============ ====== ===== ====== ===== ============
19. PROFESSIONAL FEES -- -- -- -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- -- -- -- --
------------ ------------ ------ ----- ------ ----- ------------
21. OTHER REORGANIZATION EXPENSES
(attach list) -- -- -- -- -- -- --
------------ ------------ ------ ----- ------ ----- ------------
TOTAL DISBURSEMENTS 1,045,516.53 2,311,318.80 -- -- -- -- 3,356,835.33
============ ============ ====== ===== ====== ===== ============
22. NET CASH FLOW -- -- -- -- -- -- --
23. CASH - END OF MONTH (MOR-2) 100.00 100.00 -- -- -- -- 100.00
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
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 -- -- --
Royalty Owners Trust Account -- -- --
Emission Credits -- -- --
Intercompany Funding 924,640.24 2,212,581.75 3,137,221.99
--
--
--
--
------------- ------------- --------- -------- --------- ------- -------------
TOTAL OTHER RECEIPTS 924,640.24 2,212,581.75 -- -- -- -- 3,137,221.99
============= ============= ========= ======== ========= ======= =============
18. OTHER DISBURSEMENTS:
Lease Operating Expense -- -- --
Workover Expense -- -- --
Capital Expenditures -- -- --
Revenue & Royalties -- -- --
Interest Payment -- -- --
Restricted Cash - Bond Funding -- -- --
Severance tax -- -- --
Pre-petition checks voided in current period -- -- --
Revolver payment to CIT 120,876.29 98,737.05 219,613.34
--
--
------------- ------------- --------- -------- --------- ------- -------------
TOTAL OTHER DISBURSEMENTS 120,876.29 98,737.05 -- -- -- -- 219,613.34
============= ============= ========= ======== ========= ======= =============
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11
FOR THE PERIOD 9/01/01 - 9/30/01
CASH RECEIPTS AND Chase Chase
DISBURSEMENTS 00103317203 00101818459
----------------- -------------- ----------- ------------ -----------
1. CASH-BEGINNING OF MONTH -- 100.00 -- --
============== =========== ============ ===========
RECEIPTS:
2. CASH SALES -- -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 98,737.05
4. LOANS & ADVANCES (attach list)
5. SALE OF ASSETS
6. OTHER (attach list) 2,212,581.75 --
-------------- ----------- ------------ -----------
TOTAL RECEIPTS 2,212,581.75 98,737.05 -- --
-------------- ----------- ------------ -----------
(Withdrawal) Contribution by Individual Debtor MFR-2* 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 2,212,581.75
12. INSURANCE
13. INVENTORY PURCHASES
14. VEHICLE EXPENSES
15. TRAVEL & ENTERTAINMENT
16. REPAIRS, MAINTENANCE & SUPPLIES
17. ADMINISTRATIVE & SELLING
18. OTHER (attach list) -- 98,737.05
-------------- ----------- ------------ -----------
TOTAL DISBURSEMENTS FROM OPERATIONS 2,212,581.75 98,737.05 -- --
============== =========== ============ ===========
19. PROFESSIONAL FEES -- -- -- --
20. U.S. TRUSTEE FEES -- -- -- --
-------------- ----------- ------------ -----------
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- --
TOTAL DISBURSEMENTS 2,212,581.75 98,737.05 -- --
============== =========== ============ ===========
22. NET CASH FLOW -- -- -- --
23. CASH - END OF MONTH (MOR-2) -- 100.00 -- --
CASH RECEIPTS AND Total
DISBURSEMENTS Debtor
----------------- ------------ ----------- -------------
1. CASH-BEGINNING OF MONTH -- -- 100.00
============ =========== =============
RECEIPTS:
2. CASH SALES -- -- --
3. COLLECTION OF ACCOUNTS RECEIVABLE 98,737.05
4. LOANS & ADVANCES (attach list) --
5. SALE OF ASSETS --
6. OTHER (attach list) 2,212,581.75
------------ ----------- -------------
TOTAL RECEIPTS -- -- 2,311,318.80
------------ ----------- -------------
(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 2,212,581.75
12. INSURANCE --
13. INVENTORY PURCHASES --
14. VEHICLE EXPENSES --
15. TRAVEL & ENTERTAINMENT --
16. REPAIRS, MAINTENANCE & SUPPLIES --
17. ADMINISTRATIVE & SELLING --
18. OTHER (attach list) 98,737.05
------------ ----------- -------------
TOTAL DISBURSEMENTS FROM OPERATIONS -- -- 2,311,318.80
============ =========== =============
19. PROFESSIONAL FEES -- -- --
20. U.S. TRUSTEE FEES -- -- --
------------ ----------- -------------
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- --
TOTAL DISBURSEMENTS -- -- 2,311,318.80
============ =========== =============
22. NET CASH FLOW -- -- --
23. CASH - END OF MONTH (MOR-2) -- -- 100.00
MOR-7
*Applies to Individual debtor's only.
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11
FOR THE PERIOD 9/1/01 - 9/30/01
OTHER CASH RECEIPTS AND Chase Chase Total
DISBURSEMENTS: 00103317203 00101818459 Debtor
-------------- ------------ ------------ ------------
6. OTHER RECEIPTS:
Interest Income -- -- --
401(k) Plan Refund -- -- --
Cobra Insurance Payment -- -- --
Miscellaneous -- -- --
Royalty Owners Trust Account -- --
Emission Credits -- -- --
Intercompany Transfer 2,212,581.75 -- 2,212,581.75
------------ --------- ------------
TOTAL OTHER RECEIPTS 2,212,581.75 -- 2,212,581.75
============ ========= ============
18. OTHER DISBURSEMENTS:
Lease Operating Expenses --
Workover Expense --
Capital Expenditures -- -- --
Revenue & Royalties --
Interest Payment -- -- --
Restricted Cash - Bond Funding -- -- --
Severance tax --
Pre-petition checks voided in current period -- -- --
CIT Revolver Payments -- 98,737.05 98,737.05
------------ --------- ------------
TOTAL OTHER DISBURSEMENTS -- 98,737.05 98,737.05
============ ========= ============
MOR-7 ATTACHMENT
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
BANK NAME Chase Bk of TX Chase Bk of TX
ACCOUNT NUMBER 00103317203 00101818459
ACCOUNT TYPE Concentration Concentration TOTAL
-------------- ---------------- ---------------- -----------
BANK BALANCE $ -- $ 100 $ 100
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
OTHER --
---------------- ---------------- -----------
ADJUSTED BANK BALANCE $ -- $ 100 $ 100
================ ================ ===========
BEGINNING CASH - PER BOOKS $ -- $ 100 $ 100
RECEIPTS 120,876 120,876
TRANSFERS BETWEEN ACCOUNTS 924,640 924,640
(WITHDRAWAL)CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS (924,640) (120,876) (1,045,516)
---------------- ---------------- -----------
ENDING CASH - PER BOOKS $ -- $ 100 $ 100
================ ================ ===========
MOR-8
CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
BANK NAME Chase Bk of TX Chase Bk of TX
ACCOUNT NUMBER 00103317203 00101818459
ACCOUNT TYPE Concentration Concentration TOTAL
-------------- -------------- --------------- -----------
BANK BALANCE $ -- $ 100 $ 100
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
OTHER --
-------------- -------------- -----------
ADJUSTED BANK BALANCE $ -- $ 100 $ 100
============== ============== ===========
BEGINNING CASH - PER BOOKS $ -- $ 100 $ 100
RECEIPTS 98,737 98,737
TRANSFERS BETWEEN ACCOUNTS 2,212,582 2,212,582
(WITHDRAWAL)CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS (2,212,582) (98,737) (2,311,319)
-------------- -------------- -----------
ENDING CASH - PER BOOKS $ -- $ 100 $ 100
============== ============== ===========
MOR-8
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
h91714ex99-4.txt
MONTHLY OPERATING REPORT F/STERLING FIBERS INC
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: SEPTEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/01
----------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 4,472,168 $ 1,311,018 $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (209,403) $ (228,529) $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $ (1,202,563) $ (891,256) $ -- $ -- $ -- $ --
PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ --
TOTAL DISBURSEMENTS (MOR-7) $ 6,063,610 $ 4,412,856 $ -- $ -- $ -- $ --
***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
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
Page 3 of 15
10/18/01
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.
2 Automobile Liability Number of vehicles owned $92,955 (AFCO)
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.
4 Excess Liability Included Included
5 Excess Liability Flat charge - based on $295,000
exposures and risk
potential
6 Excess Liability Flat charge - based on $241,886
exposures and risk
potential
7 Excess Liability Flat charge $109,210
8 Excess Liability Flat Charge $80,938
Page 4 of 15
10/18/01
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
10 Marine Terminal Operators Based on volume $27,000 (AFCO) Min. premium & deposit.
Liability and Charterer's throughput and no.
Legal Liability chartered vessels.
11 Excess Marine Liability Volume thru put & $57,375
vessels docked.
12 Excess Marine Liability Flat $21,250
13 Property Damage, Business Property Values - Annual - Financed through
Interruption and Boiler & PD Income values - AFCO. $4.0M (est.)
Machinery BI PML, fire protection
available; many
other factors.
14 Directors & Officers Various $316,000 (15 mos.)
Liability
15 Excess Directors & Various $223,700 (15 mos.)
Officers Liability
16 Directors & Officers Various $115,000 (15 mos.)
Liability
Page 5 of 15
10/18/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/2002
Depositor's Forgery Agreement. Ded. $50,000. 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 Duty Drawback Bond $1,000,000 Washington 1 year Continuing
International
22 Fiduciary $10,000,000 National Union 1 year 8/21/2002
Ded. $250,000 per occurrence
23 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/2002
Liability (Petrochem & $8,000,000 aggregate (Indian Harbor)
Fibers)
24 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 $14,450
Depositor's Forgery
18 Hull & Machinery and Hull & Machinery $29,378 (AFCO)
Protection & Indemnity values
19 Pollution Insurance Hull gross registered $4,258 (AFCO)
tonnage
20 Marine and Railroad Cargo Declared shipment $40,000 Annual Approx.
values
21 Duty Drawback Bond Limit $2,875
22 Fiduciary Various $22,000 - Financed through Imperial.
23 Environmental Impairment Loss Potential $106,200 - Financed through AFCO.
Liability (Petrochem &
Fibers)
24 Closure/Post Closure Estimated $40,610
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.
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING FIBERS, INC. CASE #01-37808-H4-11
Floyd/Beasley Transfer Company $ 10,101.32 shippers
Jack's Transportation, Inc. $ 2,841.75 shippers
Sargent Trucking $ 10,610.62 shippers
Sunbelt Furniture Express, Inc. $ 5,940.37 shippers
CH2M Hill $ 15,000.00 critical vendor
-----------
TOTAL $ 44,494.06
===========
SUMMARY
Critical Vendors $ 15,000.00
Shippers $ 29,494.06
-----------
TOTAL $ 44,494.06
===========
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED SEPTEMBER 30, 2001
(In Thousands) (Unaudited)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,371 $ 1,222 $ - $ 296
Trade accounts receivable, net - 42,057 44 3,131
Other Receivables - 2,819 - -
Due from affiliates - 19,544 11,309 4,522
Inventories - 26,899 - 8,819
Prepaid expenses 9 2,585 - -
Deferred income tax benefit - - - -
------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,380 95,126 11,353 16,768
Property, plant and equipment, net - 127,479 3,325 6,310
Deferred income taxes - - - -
Investments-Third Party - 1,500 - -
Investments in Subs 35,059 95,073 4,955 -
Other assets 7,356 24,279 - 1,428
------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,795 $ 343,457 $ 19,633 $ 24,506
====================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 1 104,081 1,676 3,582
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 57,221
Secured Debt Accrued Interest * - 20,051 - 5,055
Unsecured debt 192,878 277,260 1,110 73,391
Other / Intercompany - 201,020 - -
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - 35
Less: Unearned compensation - (458) - 458
Redeemable preferred stock 27,272 (15,769) - 15,769
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 -
Additional paid-in capital (367,555) (229,904) - 9,676
Retained earnings-Filing Date 191,191 (215,021) 15,690 (138,587)
Retained earnings-Post Filing Date 8 (23,305) 1,156 (2,094)
Pension adjustment - (135) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
------------------------------------------------------------------------------------
(176,356) (468,293) 16,847 (131,005)
Treasury stock at cost - (2,537) - -
------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (176,356) (470,830) 16,847 (131,005)
TOTAL LIABILITIES AND EQUITY $ 43,795 $ 343,457 $ 19,633 $ 24,506
====================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 916 $ - $ 170
Trade accounts receivable, net - 3,366 992 5,095
Other Receivables - 4,350 - -
Due from affiliates 2,634 43,628 835 5,969
Inventories - - 104 1,713
Prepaid expenses (283) - - 16
Deferred income tax benefit - - - -
-----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,351 52,260 1,931 12,963
Property, plant and equipment, net - - - 44,332
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs - 297,229 3,118 -
Other assets 2,754 7,335 - -
----------------------------------------------------------------------------------
TOTAL ASSETS $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 13 19,774 463 2,716
Pre-Petition liabilities:
Notes Payable - Secured * 3,652 67,152 - -
Secured Debt Accrued Interest * 323 5,932 - -
Unsecured debt 840 264,992 170 62,478
Other / Intercompany - 5,727 -
Deferred income taxes - - - -
Common stock held by new ESOP - - - -
Less: Unearned compensation - - - -
Redeemable preferred stock - - - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 48 - -
Additional paid-in capital - 83,348 5,438 3,118
Retained earnings-Filing Date 779 (90,595) (876) (10,908)
Retained earnings-Post Filing Date (502) 446 (146) (109)
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------
277 (6,753) 4,416 (7,899)
Treasury stock at cost - - - -
----------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 277 (6,753) 4,416 (7,899)
TOTAL LIABILITIES AND EQUITY $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 3,975
Trade accounts receivable, net - 54,685
Other Receivables - 7,169
Due from affiliates (81,463) 6,978
Inventories - 37,535
Prepaid expenses - 2,327
Deferred income tax benefit - -
--------------------------------
TOTAL CURRENT ASSETS (81,463) 112,669
Property, plant and equipment, net - 181,446
Deferred income taxes - -
Investments-Third Party - 1,500
Investments in Subs (385,026) 50,408
Other assets (1) 43,151
--------------------------------
TOTAL ASSETS $(466,490) $ 389,174
================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) (25,088) 107,218
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (5,378) 25,983
Unsecured debt (130,528) 742,591
Other / Intercompany (201,020) 5,727
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 27,272
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (43,602) (539,481)
Retained earnings-Filing Date - (248,327)
Retained earnings-Post Filing Date - (24,546)
Pension adjustment - (135)
Accumulated translation adj. - -
Deferred compensation - (3)
--------------------------------
(43,603) (812,369)
Treasury stock at cost - (2,537)
--------------------------------
TOTAL STOCKHOLDERS' EQUITY (43,603) (814,906)
TOTAL LIABILITIES AND EQUITY $(466,490) $ 389,174
================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
8/31/2001(1) MONTH MONTH MONTH MONTH MONTH
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 3,026 $ 3,514 $ -- $ -- $ --
ROYALTY AND REVENUE PAYABLE -- -- -- -- --
NOTES PAYABLE - INSURANCE -- -- -- -- --
TAX PAYABLE: -- --
Federal Payroll Taxes 5 5 -- -- --
State Payroll & Sales 13 1 -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes (Property/franchise) 389 62 -- -- --
TOTAL TAXES PAYABLE $ 407 $ 68 $ -- $ -- $ -- $ --
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- -- --
2. Lease Operating Expenses/Capital -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 3,582 $ -- $ -- $ -- $ --
====================================================================================================================================
*Payment Requires Court Approval
(1) Represents the period 07/17/01 thru 08/31/01.
MOR-4
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 9/30/2001
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- -------- ----------- --------- ----------- ----------- -------------
0-30 $107,219 $105,518 $ 5 $ 34 $ 1,662 $ --
31-60 -- -- -- -- -- --
61-90 -- -- -- -- -- --
91 + -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
TOTAL $107,219 $105,518 $ 5 $ 34 $ 1,662 $ --
======== ======== ======== ======== ======== ========
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
-----
0-30 $ 50,234 $ 50,234 $ -- $ -- $ -- $ --
31-60 (764) (764) -- -- --
61-90 9,179 9,179 -- -- --
91 + 4,962 4,962 -- -- --
-------- ----------- -------- -------- -------- --------
TOTAL $ 63,611 $63,610,978 $ -- $ -- $ -- $ --
======== =========== ======== ======== ======== ========
(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
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE MONTH ENDING SEPTEMBER 30, 2001
STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS,
HOLDINGS, INC. INC. ENERGY, INC. INC.
MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ -- $ 23,943,367 $ 158,149 $ 1,311,018
TOTAL COST OF REVENUES -- 25,292,855 158,149 1,399,297
GROSS PROFIT $ -- $ (1,349,488) $ -- $ (88,279)
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (990) $ 707,114 $ -- $ 140,250
Insiders Compensation -- 188,763 -- --
Professional Fees -- 3,392,350 -- --
Other (Earnings in Joint Venture) -- 616,375 (616,375) --
TOTAL OPERATING EXPENSE $ (990) $ 4,904,602 $ (616,375) $ 140,250
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 990 $ (6,254,090) $ 616,375 $ (228,529)
INTEREST EXPENSE (includes amort of debt fees) (73,954) 2,321,833 -- 614,434
DEPRECIATION -- 2,155,512 -- 48,293
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ (73,954) $ 4,477,345 $ -- $ 662,727
===================================================================================================================================
NET INCOME BEFORE TAXES $ 74,944 $ (10,731,435) $ 616,375 $ (891,256)
INCOME TAXES -- 36,000 -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 74,944 $ (10,767,435) $ 616,375 $ (891,256)
===================================================================================================================================
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ (460,327) $ 1,122,478 $ 358,476 $ 2,936,623
TOTAL COST OF REVENUES -- 26,148 516,203 1,924,492
GROSS PROFIT $ (460,327) $ 1,096,330 $ (157,727) $ 1,012,131
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ -- $ 211,587 $ (74,946) $ 606,149
Insiders Compensation -- -- -- --
Professional Fees -- -- -- --
Other (Earnings in Joint Venture) -- -- -- --
TOTAL OPERATING EXPENSE $ -- $ 211,587 $ (74,946) $ 606,149
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (460,327) $ 884,743 $ (82,781) $ 405,982
INTEREST EXPENSE (includes amort of debt fees) 37,665 236,041 -- --
DEPRECIATION 23,000 485,795 -- 405,582
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 721,836 $ -- $ 405,582
===================================================================================================================================
NET INCOME BEFORE TAXES $ (520,992) $ 162,907 $ (82,781) $ 400
INCOME TAXES -- -- -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (520,992) $ 162,907 $ (82,781) $ 400
===================================================================================================================================
DEBTORS
MONTH ELIMINATIONS CONSOLIDATED
------------------ ------------------
REVENUES (MOR-1) $ 460,327 $ 29,830,111
TOTAL COST OF REVENUES 460,327 29,777,471
GROSS PROFIT $ -- $ 52,640
===========================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (465,887) 1,123,277
Insiders Compensation -- 188,763
Professional Fees -- 3,392,350
Other (Earnings in Joint Venture) -- --
TOTAL OPERATING EXPENSE $ (465,887) $ 4,704,390
===========================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 465,887 (4,651,750)
INTEREST EXPENSE (includes amort of debt fees) 465,887 3,601,906
DEPRECIATION -- 3,118,182
OTHER (INCOME) EXPENSES* -- --
OTHER ITEMS** -- --
TOTAL INT. DEPR & OTHER ITEMS $ 465,887 $ 6,720,088
===========================================================================================
NET INCOME BEFORE TAXES $ -- $ (11,371,838)
INCOME TAXES -- 36,000
===========================================================================================
NET INCOME (LOSS) (MOR-1) $ -- $ (11,407,838)
===========================================================================================
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
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
CASH RECEIPTS AND
DISBURSEMENTS 8/31/2001(1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02
----------------- ------------ ------------ ------- ------- ------- -------
1. CASH-BEGINNING OF MONTH $ 714,483 $ 361,051 $ -- $ -- $ -- $ --
------------ ------------ ------- ------- ------- -------
RECEIPTS:
2. CASH SALES $ -- $ -- $ -- $ -- $ -- $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 4,481,633 2,962,072
4. LOANS & ADVANCES (attach list) -- --
5. SALE OF ASSETS -- --
6. OTHER (attach list) 1,228,545 1,385,244
TOTAL RECEIPTS $ 5,710,178 $ 4,347,316 $ -- $ -- $ -- $ --
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A
DISBURSEMENTS:
7. NET PAYROLL $ 319,807 $ 156,419 $ -- $ -- $ -- $ --
8. PAYROLL TAXES PAID 142,508 64,049
9. SALES, USE & OTHER TAXES PAID -- --
10. SECURED/RENTAL/LEASES -- 4,000
11. UTILITIES 122,540 --
12. INSURANCE -- 280,148
13. INVENTORY PURCHASES 47,098 162,287
14. VEHICLE EXPENSES -- --
15. TRAVEL & ENTERTAINMENT 208 14,891
16. REPAIRS, MAINTENANCE & SUPPLIES 26,090 58,632
17. ADMINISTRATIVE & SELLING -- 5,339
18. OTHER (attach list) 5,405,358 3,667,091
TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,063,610 $ 4,412,856 $ -- $ -- $ -- $ --
19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- $ --
20. U.S. TRUSTEE FEES -- -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --
TOTAL DISBURSEMENTS $ 6,063,610 $ 4,412,856 $ -- $ -- $ -- $ --
22. NET CASH FLOW $ (353,432) $ (65,540) $ -- $ -- $ -- $ --
23. CASH - END OF MONTH (MOR-2) $ 361,051 $ 295,511 $ -- $ -- $ -- $ --
CASH RECEIPTS AND FILING TO
DISBURSEMENTS DATE
----------------- ------------
1. CASH-BEGINNING OF MONTH $ 714,483
------------
RECEIPTS:
2. CASH SALES $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 7,443,705
4. LOANS & ADVANCES (attach list) --
5. SALE OF ASSETS --
6. OTHER (attach list) 2,613,789
TOTAL RECEIPTS $ 10,057,494
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A
DISBURSEMENTS:
7. NET PAYROLL $ 476,226
8. PAYROLL TAXES PAID 206,557
9. SALES, USE & OTHER TAXES PAID --
10. SECURED/RENTAL/LEASES 4,000
11. UTILITIES 122,540
12. INSURANCE 280,148
13. INVENTORY PURCHASES 209,385
14. VEHICLE EXPENSES --
15. TRAVEL & ENTERTAINMENT 15,099
16. REPAIRS, MAINTENANCE & SUPPLIES 84,722
17. ADMINISTRATIVE & SELLING 5,339
18. OTHER (attach list) 9,072,449
TOTAL DISBURSEMENTS FROM OPERATIONS $ 10,476,466
19. PROFESSIONAL FEES $ --
20. U.S. TRUSTEE FEES --
21. OTHER REORGANIZATION EXPENSES (attach list) --
TOTAL DISBURSEMENTS $ 10,476,466
22. NET CASH FLOW $ (418,972)
23. CASH - END OF MONTH (MOR-2) $ 295,511
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
OTHER CASH RECEIPTS AND 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02
DISBURSEMENTS:
----------------------- ------------- ------------- ------- ------ ------ ------
6. OTHER RECEIPTS:
Interest Income $ 545 $ --
401(k) Plan Refund -- --
Cobra Insurance Payment 6,083 3,806
Miscellaneous 80,917 42,438
Royalty Owners Trust Account -- --
Emission Credits -- --
Intercompany Transfers 871,000 1,139,000
Account Transfers 270,000 200,000
TOTAL OTHER RECEIPTS $ 1,228,545 $ 1,385,244 $ -- $ -- $ -- $ --
18. OTHER DISBURSEMENTS:
Lease Operating Expense $ -- $ --
Workover Expense -- --
Capital Expenditures 13,000 4,812
Revenue & Royalties -- --
Interest Payment -- --
Employee Benefits 55,027 27,405
Severance tax -- --
Pre-petition checks voided in current period (3,215) (2,000)
Insiders -- --
Restricted Cash Transactions -- --
Contract Services 473,664 431,305
Licenses / Fees / Permits 1,439 --
Freight 87,551 101,650
Account Transfers 270,000 200,000
Outstanding checks to Balance to G/L (183,381) (150,611)
CIT Revolver Payments 4,691,274 3,054,530
TOTAL OTHER DISBURSEMENTS $ 5,405,358 $ 3,667,091 $ -- $ -- $ -- $ --
OTHER CASH RECEIPTS AND FILING TO
DISBURSEMENTS: DATE
----------------------- ---------
6. OTHER RECEIPTS:
Interest Income $ 545
401(k) Plan Refund --
Cobra Insurance Payment 9,889
Miscellaneous 123,355
Royalty Owners Trust Account --
Emission Credits --
Intercompany Transfers 2,010,000
Account Transfers 470,000
TOTAL OTHER RECEIPTS $2,613,789
18. OTHER DISBURSEMENTS:
Lease Operating Expense $ --
Workover Expense --
Capital Expenditures 17,812
Revenue & Royalties --
Interest Payment --
Employee Benefits 82,432
Severance tax --
Pre-petition checks voided in current period (5,215)
Insiders --
Restricted Cash Transactions
Contract Services
Licenses / Fees / Permits
Freight
Account Transfers 470,000
Outstanding checks to Balance to G/L (333,992)
CIT Revolver Payments 7,745,804
TOTAL OTHER DISBURSEMENTS $7,976,840
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
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 $ 35,411 $ 353 $ 74,378 $ --
RECEIPTS:
2. CASH SALES $ -- $ -- $ -- $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 670,725
4. LOANS & ADVANCES (attach list)
5. SALE OF ASSETS
6. OTHER (attach list) -- 1,139,000 200,000 --
TOTAL RECEIPTS $ 670,725 $ 1,139,000 $ 200,000 $ --
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A
DISBURSEMENTS:
7. NET PAYROLL $ -- $ -- $ 156,419 $ --
8. PAYROLL TAXES PAID 64,049
9. SALES, USE & OTHER TAXES PAID
10. SECURED/RENTAL/LEASES 4,000
11. UTILITIES
12. INSURANCE 280,148
13. INVENTORY PURCHASES 162,287
14. VEHICLE EXPENSES
15. TRAVEL & ENTERTAINMENT 14,891
16. REPAIRS, MAINTENANCE & SUPPLIES 58,632
17. ADMINISTRATIVE & SELLING 5,339
18. OTHER (attach list) 706,036 612,561 -- --
TOTAL DISBURSEMENTS FROM OPERATIONS $ 706,036 $ 1,137,858 $ 220,468 $ --
19. PROFESSIONAL FEES $ -- $ -- $ -- $ --
20. U.S. TRUSTEE FEES -- -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- --
TOTAL DISBURSEMENTS $ 706,036 $ 1,137,858 $ 220,468 $ --
22. NET CASH FLOW $ (35,311) $ 1,142 $ (20,468) $ --
23. CASH - END OF MONTH (MOR-2) $ 100 $ 1,495 $ 53,910 $ --
CASH RECEIPTS AND Bank One Bank of America FILING TO
DISBURSEMENTS 5577659 1171987307 DATE
----------------- ----------- --------------- -----------
1. CASH-BEGINNING OF MONTH $ 98,848 $ 152,062 $ 361,051
RECEIPTS:
2. CASH SALES $ -- $ -- $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 2,291,347 2,962,072
4. LOANS & ADVANCES (attach list) --
5. SALE OF ASSETS --
6. OTHER (attach list) 6,351 39,893 1,385,244
TOTAL RECEIPTS $ 2,297,698 $ 39,893 $ 4,347,316
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A
DISBURSEMENTS:
7. NET PAYROLL $ -- $ -- $ 156,419
8. PAYROLL TAXES PAID 64,049
9. SALES, USE & OTHER TAXES PAID --
10. SECURED/RENTAL/LEASES 4,000
11. UTILITIES --
12. INSURANCE 280,148
13. INVENTORY PURCHASES 162,287
14. VEHICLE EXPENSES --
15. TRAVEL & ENTERTAINMENT 14,891
16. REPAIRS, MAINTENANCE & SUPPLIES 58,632
17. ADMINISTRATIVE & SELLING 5,339
18. OTHER (attach list) 2,348,494 -- 3,667,091
TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,348,494 $ -- $ 4,412,856
19. PROFESSIONAL FEES $ -- $ -- $ --
20. U.S. TRUSTEE FEES -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- --
TOTAL DISBURSEMENTS $ 2,348,494 $ -- $ 4,412,856
22. NET CASH FLOW $ (50,796) $ 39,893 $ (65,540)
23. CASH - END OF MONTH (MOR-2) $ 48,052 $ 191,955 $ 295,511
MOR-7 *Applies to Individual debtor's only.
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
Royalty Owners Trust Account
Emission Credits
Intercompany Transfers 1,139,000
Account Transfers 200,000
TOTAL OTHER RECEIPTS $ -- $ 1,139,000 $ 200,000 $ --
18. OTHER DISBURSEMENTS:
Lease Operating Expense
Workover Expense
Capital Expenditures 4,812
Revenue & Royalties
Interest Payment
Employee Benefits 27,405
Severance tax
Pre-petition checks voided in current period (2,000)
Insiders
Restricted Cash Transactions
Contract Services 431,305
Licenses / Fees / Permits
Freight 101,650
Account Transfers 200,000
Outstanding checks to Balance to G/L (150,611)
CIT Revolver Payments 706,036
TOTAL OTHER DISBURSEMENTS $ 706,036 $ 612,561 $ -- $ --
OTHER CASH RECEIPTS AND Bank One Bank of America FILING TO
DISBURSEMENTS: 5577659 1171987307 DATE
----------------------- ---------------------------------------
6. OTHER RECEIPTS:
Interest Income $ --
401(k) Plan Refund --
Cobra Insurance Payment 3,806 3,806
Miscellaneous 2,545 39,893 42,438
Royalty Owners Trust Account --
Emission Credits --
Intercompany Transfers 1,139,000
Account Transfers 200,000
--
--
TOTAL OTHER RECEIPTS $ 6,351 $ 39,893 $ 1,385,244
18. OTHER DISBURSEMENTS:
Lease Operating Expense $ --
Workover Expense --
Capital Expenditures 4,812
Revenue & Royalties --
Interest Payment --
Employee Benefits 27,405
Severance tax --
Pre-petition checks voided in current period (2,000)
Insiders --
Restricted Cash Transactions --
Contract Services 431,305
Licenses / Fees / Permits --
Freight 101,650
Account Transfers 200,000
Outstanding checks to Balance to G/L (150,611)
CIT Revolver Payments 2,348,494 3,054,530
TOTAL OTHER DISBURSEMENTS $ 2,348,494 $ -- $ 3,667,091
MOR-7 ATTACHMENT
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 2001
BANK NAME Chase Bk of TX Bank One Bank of America Chase Bk of TX Chase Bk of TX Chase Bk of Del
ACCOUNT NUMBER 00103316965 5577659 0011 7198 7307 00103405768 00100547117 630181003508
ACCOUNT TYPE AP Trade Lockbox Petty Cash Payroll AR Wires Contr. Disb.
--------------- -------------- ---------- --------------- -------------- -------------- ---------------
BANK BALANCE $ 353 $ 98,847 $ 152,062 $ 74,378 $ 35,411 $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS -- --
ADJUSTED BANK BALANCE $ 353 $ 98,847 $ 152,062 $ 74,378 $ 35,411 $ --
BEGINNING CASH - PER BOOKS $ 39,373 $ 106,241 $ 74,495 $ 266,693 $ 227,680 $ --
RECEIPTS 2,946,963 77,567 1,544,648
TRANSFERS BETWEEN ACCOUNTS 601,000 270,000
(WITHDRAWAL)CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS (640,021) (2,954,356) (462,315) (1,736,918)
ENDING CASH - PER BOOKS $ 352 $ 98,848 $ 152,062 $ 74,378 $ 35,410 $ --
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
--------------- ----------
BANK BALANCE $ 361,051
DEPOSIT IN TRANSIT
OUTSTANDING CHECKS
ADJUSTED BANK BALANCE $ 361,051
BEGINNING CASH - PER BOOKS $ 714,482
RECEIPTS 4,569,178
TRANSFERS BETWEEN ACCOUNTS 871,000
(WITHDRAWAL)CONTRIBUTION-
BY INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS (5,793,610)
ENDING CASH - PER BOOKS $ 361,049
MOR-8
CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
BANK NAME Chase Bk of TX Bank One Bank of America Chase Bk of TX Chase Bk of TX Chase Bk of Del
ACCOUNT NUMBER 00103316965 5577659 0011 7198 7307 00103405768 00100547117 630181003508
ACCOUNT TYPE AP Trade Lockbox Petty Cash Payroll AR Wires Contr. Disb.
-------------- --------------- ---------- ---------------- -------------- --------------- ---------------
BANK BALANCE $ 1,495 $ 48,050 $ 191,955 $ 53,909 $ 100 $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS -- --
ADJUSTED BANK BALANCE $ 1,495 $ 48,050 $ 191,955 $ 53,909 $ 100 $ --
=================================================================================================================================
BEGINNING CASH - PER BOOKS $ 352 $ 98,848 $ 152,062 $ 74,378 $ 35,410 $ --
RECEIPTS 2,297,698 39,893 670,725
TRANSFERS BETWEEN ACCOUNTS 939,000 200,000
(WITHDRAWAL)CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS (937,858) (2,348,494) (220,468) (706,036)
ENDING CASH - PER BOOKS $ 1,494 $ 48,052 $ 191,955 $ 53,910 $ 99 $ --
=================================================================================================================================
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
-------------- ----------
BANK BALANCE $ 295,509
DEPOSIT IN TRANSIT
OUTSTANDING CHECKS
ADJUSTED BANK BALANCE $ 295,509
==========================================
BEGINNING CASH - PER BOOKS $ 361,050
RECEIPTS 3,008,316
TRANSFERS BETWEEN ACCOUNTS 1,139,000
(WITHDRAWAL)CONTRIBUTION-
BY INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS (4,212,856)
ENDING CASH - PER BOOKS $ 295,509
==========================================
MOR-8
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
h91714ex99-5.txt
MONTLY OPERATING REPORT F/STERLING CHEM INT'L INC
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: SEPTEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/01
------------------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 123,655 $ (460,327) $ -- $ -- $ -- $ --
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 110,646 $ (460,327) $ -- $ -- $ -- $ --
NET INCOME (LOSS) (MOR-6) $ 19,648 $ (520,992) $ -- $ -- $ -- $ --
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? NO If so, describe
--------------------------------------------------------------------------------
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
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
Page 3 of 12
10/18/01
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.
2 Automobile Liability Number of vehicles $92,955 (AFCO)
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.
4 Excess Liability Included Included
5 Excess Liability Flat charge - based $295,000
on exposures and
risk potential
6 Excess Liability Flat charge - based $241,886
on exposures and
risk potential
7 Excess Liability Flat charge $109,210
8 Excess Liability Flat Charge $80,938
Page 4 of 12
10/18/01
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
10 Marine Terminal Based on volume $27,000 (AFCO) Min. premium & deposit.
Operators Liability and throughput and no.
Charterer's Legal chartered vessels.
Liability
11 Excess Marine Liability Volume thru put & $57,375
vessels docked.
12 Excess Marine Liability Flat $21,250
13 Property Damage, Property Values - Annual - Financed through AFCO.
Business Interruption PD Income values - $4.0M (est.)
and Boiler & Machinery BI PML, fire
protection
available; many
other factors.
14 Directors & Officers Various $316,000 (15 mos.)
Liability
15 Excess Directors & Various $223,700 (15 mos.)
Officers Liability
16 Directors & Officers Various $115,000 (15 mos.)
Liability
Page 5 of 12
10/18/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/02
Depositor's Forgery Agreement. Ded. $50,000. 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 Duty Drawback Bond $1,000,000 Washington 1 year Continuing
International
22 Fiduciary $10,000,000 National Union 1 year 8/21/02
Ded. $250,000 per occurrence
23 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/02
Liability (Petrochem & $8,000,000 aggregate (Indian Harbor)
Fibers)
24 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 $14,450
Depositor's Forgery
18 Hull & Machinery and Hull & Machinery $29,378 (AFCO)
Protection & Indemnity values
19 Pollution Insurance Hull gross $4,258 (AFCO)
registered tonnage
20 Marine and Railroad Cargo Declared shipment $40,000 Annual Approx.
values
21 Duty Drawback Bond Limit $2,875
22 Fiduciary Various $22,000 - Financed through Imperial.
23 Environmental Impairment Loss Potential $106,200 - Financed through AFCO.
Liability (Petrochem &
Fibers)
24 Closure/Post Closure Estimated $40,610
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.
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED SEPTEMBER 30, 2001
(In Thousands) (Unaudited)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,371 $ 1,222 $ - $ 296
Trade accounts receivable, net - 42,057 44 3,131
Other Receivables - 2,819 - -
Due from affiliates - 19,544 11,309 4,522
Inventories - 26,899 - 8,819
Prepaid expenses 9 2,585 - -
Deferred income tax benefit - - - -
---------------------------------- ------------------------------------------------
TOTAL CURRENT ASSETS 1,380 95,126 11,353 16,768
Property, plant and equipment, net - 127,479 3,325 6,310
Deferred income taxes - - - -
Investments-Third Party - 1,500 - -
Investments in Subs 35,059 95,073 4,955 -
Other assets 7,356 24,279 - 1,428
---------------------------------- ------------------------------------------------
TOTAL ASSETS $ 43,795 $ 343,457 $ 19,633 $ 24,506
================================== ================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 1 104,081 1,676 3,582
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 57,221
Secured Debt Accrued Interest * - 20,051 - 5,055
Unsecured debt 192,878 277,260 1,110 73,391
Other / Intercompany - 201,020 - -
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - 35
Less: Unearned compensation - (458) - 458
Redeemable preferred stock 27,272 (15,769) - 15,769
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 -
Additional paid-in capital (367,555) (229,904) - 9,676
Retained earnings-Filing Date 191,191 (215,021) 15,690 (138,587)
Retained earnings-Post Filing Date 8 (23,305) 1,156 (2,094)
Pension adjustment - (135) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------- ------------------------------------------------
(176,356) (468,293) 16,847 (131,005)
Treasury stock at cost - (2,537) - -
---------------------------------- ------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (176,356) (470,830) 16,847 (131,005)
TOTAL LIABILITIES AND EQUITY $ 43,795 $ 343,457 $ 19,633 $ 24,506
================================== ================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 916 $ - $ 170
Trade accounts receivable, net - 3,366 992 5,095
Other Receivables - 4,350 - -
Due from affiliates 2,634 43,628 835 5,969
Inventories - - 104 1,713
Prepaid expenses (283) - - 16
Deferred income tax benefit - - - -
-----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,351 52,260 1,931 12,963
Property, plant and equipment, net - - - 44,332
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs - 297,229 3,118 -
Other assets 2,754 7,335 - -
----------------------------------------------------------------------------------
TOTAL ASSETS $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 13 19,774 463 2,716
Pre-Petition liabilities:
Notes Payable - Secured * 3,652 67,152 - -
Secured Debt Accrued Interest * 323 5,932 - -
Unsecured debt 840 264,992 170 62,478
Other / Intercompany - 5,727 -
Deferred income taxes - - - -
Common stock held by new ESOP - - - -
Less: Unearned compensation - - - -
Redeemable preferred stock - - - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 48 - -
Additional paid-in capital - 83,348 5,438 3,118
Retained earnings-Filing Date 779 (90,595) (876) (10,908)
Retained earnings-Post Filing Date (502) 446 (146) (109)
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------
277 (6,753) 4,416 (7,899)
Treasury stock at cost - - - -
----------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 277 (6,753) 4,416 (7,899)
TOTAL LIABILITIES AND EQUITY $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 3,975
Trade accounts receivable, net - 54,685
Other Receivables - 7,169
Due from affiliates (81,463) 6,978
Inventories - 37,535
Prepaid expenses - 2,327
Deferred income tax benefit - -
---------- - ---------------------
TOTAL CURRENT ASSETS (81,463) 112,669
Property, plant and equipment, net - 181,446
Deferred income taxes - -
Investments-Third Party - 1,500
Investments in Subs (385,026) 50,408
Other assets (1) 43,151
---------- - ---------------------
TOTAL ASSETS $(466,490) $ 389,174
========== = =====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) (25,088) 107,218
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (5,378) 25,983
Unsecured debt (130,528) 742,591
Other / Intercompany (201,020) 5,727
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 27,272
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (43,602) (539,481)
Retained earnings-Filing Date - (248,327)
Retained earnings-Post Filing Date - (24,546)
Pension adjustment - (135)
Accumulated translation adj. - -
Deferred compensation - (3)
---------- - ---------------------
(43,603) (812,369)
Treasury stock at cost - (2,537)
---------- - ---------------------
TOTAL STOCKHOLDERS' EQUITY (43,603) (814,906)
TOTAL LIABILITIES AND EQUITY $(466,490) $ 389,174
========== = =====================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
8/31/2001(1) 9/30/01 MONTH MONTH MONTH MONTH
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 13 $ 13 $ -- $ -- $ -- $ --
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE -- -- -- -- -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- -- -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- -- -- -- -- --
TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ --
SECURED DEBT POST-PETITION -- -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- -- -- -- -- --
2. Lease Operating Expenses/Capital -- -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 13 $ 13 $ -- $ -- $ -- $ --
====================================================================================================================================
*Payment Requires Court Approval
(1) Represents the period 7/17/01 thru 08/31/01
MOR-4
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 9/30/01
-------
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
----- ----------- ------------- -------------- -------------- -------------- ---------------
0-30 $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
31-60 -- -- -- -- -- --
61-90 -- -- -- -- -- --
91 + -- -- -- -- -- --
TOTAL $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
----- ----------- ------------- -------------- -------------- -------------- ---------------
0-30 $ 50,234 $ 50,234 $ -- $ -- $ -- $ --
31-60 (764) (764) -- -- -- --
61-90 9,179 9,179 -- -- -- --
91 + 4,962 4,962 -- -- -- --
TOTAL $ 63,611 $63,610,978 $ -- $ -- $ -- $ --
(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
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE MONTH ENDING SEPTEMBER 30, 2001
STATEMENT OF INCOME (LOSS)
----------------------------------------------------------------------------------
STERLING STERLING STERLING STERLING STERLING
CHEMICALS CHEMICALS, CHEMICALS FIBERS, CHEMICALS
HOLDINGS, INC. INC. ENERGY, INC. INC. INT'L, INC.
01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 01-37809-H4-11
-----------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ -- $ 23,943,367 $ 158,149 $ 1,311,018 $ (460,327)
TOTAL COST OF REVENUES -- 25,292,855 158,149 1,399,297 --
GROSS PROFIT $ -- $ (1,349,488) $ -- $ (88,279) $ (460,327)
====================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (990) $ 707,114 $ -- $ 140,250 $ --
Insiders Compensation -- 188,763 -- -- --
Professional Fees -- 3,392,350 -- -- --
Other (Earnings in Joint Venture) -- 616,375 (616,375) -- --
TOTAL OPERATING EXPENSE $ (990) $ 4,904,602 $ (616,375) $ 140,250 $ --
====================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 990 $ (6,254,090) $ 616,375 $ (228,529) $ (460,327)
INTEREST EXPENSE (includes amort of debt fees) (73,954) 2,321,833 -- 614,434 37,665
DEPRECIATION -- 2,155,512 -- 48,293 23,000
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ (73,954) $ 4,477,345 $ -- $ 662,727 $ 60,665
====================================================================================================================================
NET INCOME BEFORE TAXES $ 74,944 $ (10,731,435) $ 616,375 $ (891,256) $ (520,992)
INCOME TAXES -- 36,000 -- -- --
====================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 74,944 $ (10,767,435) $ 616,375 $ (891,256) $ (520,992)
====================================================================================================================================
---------------------------------------------------------------------------------
STERLING STERLING PULP STERLING PULP DEBTORS
CANADA, CHEMICALS US, CHEMICALS,
INC. INC. INC.
01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ELIMINATIONS CONSOLIDATED
-----------------------------------------------------------------------------------
MONTH
REVENUES (MOR-1) $ 1,122,478 $ 358,476 $ 2,936,623 $ 460,327 $ 29,830,111
TOTAL COST OF REVENUES 26,148 516,203 1,924,492 460,327 29,777,471
GROSS PROFIT $ 1,096,330 $ (157,727) $ 1,012,131 $ -- $ 52,640
====================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ 211,587 $ (74,946) $ 606,149 $ (465,887) $ 1,123,277
Insiders Compensation -- -- -- -- 188,763
Professional Fees -- -- -- -- 3,392,350
Other (Earnings in Joint Venture) -- -- -- -- --
TOTAL OPERATING EXPENSE $ 211,587 $ (74,946) $ 606,149 $ (465,887) $ 4,704,390
====================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 884,743 $ (82,781) $ 405,982 $ 465,887 (4,651,750)
INTEREST EXPENSE (includes amort of debt fees) 236,041 -- -- 465,887 3,601,906
DEPRECIATION 485,795 -- 405,582 -- 3,118,182
OTHER (INCOME) EXPENSES* -- -- -- -- --
OTHER ITEMS** -- -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 721,836 $ -- $ 405,582 $ 465,887 $ 6,720,088
====================================================================================================================================
NET INCOME BEFORE TAXES $ 162,907 $ (82,781) $ 400 $ -- $(11,371,838)
INCOME TAXES -- -- -- -- 36,000
====================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 162,907 $ (82,781) $ 400 $ -- $(11,407,838)
====================================================================================================================================
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
CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H4-11
Chase Bank of Texas - #00100551903
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.
CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H4-11
Chase Bank of Texas - #00100551903
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 -- -- -- -- -- -- --
Royalty Owners Trust Account
Emission Credits -- -- -- -- -- -- --
TOTAL OTHER RECEIPTS -- -- -- -- -- -- --
18. OTHER DISBURSEMENTS:
Lease Operating Expense
Workover Expense
Capital Expenditures -- -- -- -- -- -- --
Revenue & Royalties
Interest Payment -- -- -- -- -- -- --
Restricted Cash - Bond Funding -- -- -- -- -- -- --
Severance Tax
Pre-petition checks voided in
current period -- -- -- -- -- -- --
TOTAL OTHER DISBURSEMENTS -- -- -- -- -- -- --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
CASE NAME: Sterling Chemicals International, Inc. CASE NUMBER: 01-37809-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 2001
BANK NAME Chase Bk of TX
ACCOUNT NUMBER 00100551903
ACCOUNT TYPE Concentration TOTAL
------------ -------------- -----
BANK BALANCE $ --
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS --
OTHER
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
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
h91714ex99-6.txt
MONTHLY OPERATING REPORT F/STERLING CANADA INC
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: SEPTEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/2001
-----------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 1,688,935 $ 1,122,478 $-- $-- $-- $--
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 1,252,362 $ 884,743 $-- $-- $-- $--
NET INCOME (LOSS) (MOR-6) $ 282,441 $ 162,907 $-- $-- $-- $--
PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $-- $-- $-- $--
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $-- $-- $-- $--
TOTAL DISBURSEMENTS (MOR-7) $22,340,404 $ 1,289,890 $-- $-- $-- $--
***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
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
Page 3 of 14
10/18/01
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.
2 Automobile Liability Number of vehicles $92,955 (AFCO)
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.
4 Excess Liability Included Included
5 Excess Liability Flat charge - based $295,000
on exposures and
risk potential
6 Excess Liability Flat charge - based $241,886
on exposures and
risk potential
7 Excess Liability Flat charge $109,210
8 Excess Liability Flat Charge $80,938
Page 4 of 14
10/18/01
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
10 Marine Terminal Operators Based on volume $27,000 (AFCO) Min. premium & deposit.
Liability and Charterer's throughput and no.
Legal Liability chartered vessels.
11 Excess Marine Liability Volume thru put & $57,375
vessels docked.
12 Excess Marine Liability Flat $21,250
13 Property Damage, Business Property Values - Annual - Financed through AFCO. $4.0M
Interruption and Boiler & PD Income values - (est.)
Machinery BI PML, fire
protection
available; many
other factors.
14 Directors & Officers Various $316,000 (15 mos.)
Liability
15 Excess Directors & Officers Various $223,700 (15 mos.)
Liability
16 Directors & Officers Various $115,000 (15 mos.)
Liability
Page 5 of 14
10/18/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE
--- ----------------- -------------- ------------- ---- ------
17 Employee Dishonesty & $5,000,000 each Insuring Agreement. Texas Pacific 1 year 10/1/02
Depositor's Forgery Ded. $50,000. 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 Duty Drawback Bond $1,000,000 Washington 1 year Continuing
International
22 Fiduciary $10,000,000 Ded. $250,000 per National Union 1 year 8/21/02
occurrence
23 Environmental $4,000,000 per loss $8,000,000 ECS (Indian Harbor) 1 year 1/15/02
Impairment Liability aggregate
(Petrochem & Fibers)
24 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 $14,450
Depositor's Forgery
18 Hull & Machinery and Hull & Machinery $29,378 (AFCO)
Protection & Indemnity values
19 Pollution Insurance Hull gross $4,258 (AFCO)
registered tonnage
20 Marine and Railroad Cargo Declared shipment $40,000 Annual Approx.
values
21 Duty Drawback Bond Limit $2,875
22 Fiduciary Various $22,000 - Financed through Imperial.
23 Environmental Loss Potential $106,200 - Financed through AFCO.
Impairment Liability
(Petrochem & Fibers)
24 Closure/Post Closure Bonds - Estimated $40,610
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.
ATTACHMENT 3
POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER
STERLING CANADA, INC. CASE #01-37810-H4-11
Canada Customs & Revenue Agency 9,488.09 paid in error
---------------
$ 9,448.09
===============
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED SEPTEMBER 30, 2001
(IN THOUSANDS) (UNAUDITED)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS,
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,371 $ 1,222 $ - $ 296
Trade accounts receivable, net - 42,057 44 3,131
Other Receivables - 2,819 - -
Due from affiliates - 19,544 11,309 4,522
Inventories - 26,899 - 8,819
Prepaid expenses 9 2,585 - -
Deferred income tax benefit - - - -
---------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 1,380 95,126 11,353 16,768
Property, plant and equipment, net - 127,479 3,325 6,310
Deferred income taxes - - - -
Investments-Third Party - 1,500 - -
Investments in Subs 35,059 95,073 4,955 -
Other assets 7,356 24,279 - 1,428
---------------------------------------------------------------------------------------
TOTAL ASSETS $ 43,795 $ 343,457 $ 19,633 $ 24,506
=======================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 1 104,081 1,676 3,582
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 57,221
Secured Debt Accrued Interest * - 20,051 - 5,055
Unsecured debt 192,878 277,260 1,110 73,391
Other / Intercompany - 201,020 - -
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - 35
Less: Unearned compensation - (458) - 458
Redeemable preferred stock 27,272 (15,769) - 15,769
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 -
Additional paid-in capital (367,555) (229,904) - 9,676
Retained earnings-Filing Date 191,191 (215,021) 15,690 (138,587)
Retained earnings-Post Filing Date 8 (23,305) 1,156 (2,094)
Pension adjustment - (135) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------------------------------------------------------------
(176,356) (468,293) 16,847 (131,005)
Treasury stock at cost - (2,537) -
---------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (176,356) (470,830) 16,847 (131,005)
TOTAL LIABILITIES AND EQUITY $ 43,795 $ 343,457 $ 19,633 $ 24,506
=======================================================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CANADA STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 916 $ - $ 170
Trade accounts receivable, net - 3,366 992 5,095
Other Receivables - 4,350 - -
Due from affiliates 2,634 43,628 835 5,969
Inventories - - 104 1,713
Prepaid expenses (283) - - 16
Deferred income tax benefit - - - -
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,351 52,260 1,931 12,963
Property, plant and equipment, net - - - 44,332
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs - 297,229 3,118 -
Other assets 2,754 7,335 - -
----------------------------------------------------------------------------------------
TOTAL ASSETS $ 5,105 $ 356,824 $ 5,049 $ 57,295
========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 13 19,774 463 2,716
Pre-Petition liabilities:
Notes Payable - Secured * 3,652 67,152 - -
Secured Debt Accrued Interest * 323 5,932 - -
Unsecured debt 840 264,992 170 62,478
Other / Intercompany - 5,727 - -
Deferred income taxes - - -
Common stock held by new ESOP - - - -
Less: Unearned compensation - - - -
Redeemable preferred stock - - - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 48 - -
Additional paid-in capital - 83,348 5,438 3,118
Retained earnings-Filing Date 779 (90,595) (876) (10,908)
Retained earnings-Post Filing Date (502) 446 (146) (109)
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------------
277 (6,753) (4,416) (7,899)
Treasury stock at cost - - - -
----------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 277 (6,753) (4,416) (7,899)
TOTAL LIABILITIES AND EQUITY $ 5,105 $ 356,824 $ 5,049 $ 57,295
========================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 3,975
Trade accounts receivable, net - 54,685
Other Receivables - 7,169
Due from affiliates (81,463) 6,978
Inventories - 37,535
Prepaid expenses - 2,327
Deferred income tax benefit - -
------------------------------------
TOTAL CURRENT ASSETS (81,463) 112,669
Property, plant and equipment, net - 181,446
Deferred income taxes - -
Investments-Third Party - 1,500
Investments in Subs (385,026) 50,408
Other assets (1) 43,151
----------------------------------
TOTAL ASSETS $(466,490) $ 389,174
====================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) (25,088) 107,218
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (5,378) 25,983
Unsecured debt (130,528) 742,591
Other / Intercompany (201,020) 5,727
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 27,272
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (43,602) (539,481)
Retained earnings-Filing Date - (248,327)
Retained earnings-Post Filing Date - (24,546)
Pension adjustment - (135)
Accumulated translation adj. - -
Deferred compensation - (3)
------------------------------------
(43,603) (812,369)
Treasury stock at cost (2,537)
------------------------------------
TOTAL STOCKHOLDERS' EQUITY (43,603) (814,908)
TOTAL LIABILITIES AND EQUITY $(466,490) $ 389,174
====================================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
8/31/2001(1) Sep-2001 MONTH MONTH MONTH MONTH
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 807 $ 257 $ -- $ -- $ -- $ --
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE - INSURANCE 19,409 19,409 -- -- -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- -- -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- -- -- -- -- --
TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ --
SECURED DEBT POST-PETITION -- -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs -- 108 -- -- -- --
2. Lease Operating Expenses/Capital -- -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 20,216 $ 19,774 $ -- $ -- $ -- $ --
====================================================================================================================================
*Payment Requires Court Approval
(1) Represents the period 07/17/01 thru 08/31/01.
MOR-4
CONSOLIDATED DEBTORS(1)
AGING OF POST-PETITION LIABILITIES(2) (IN THOUSANDS)
MONTH 9/30/01
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
---- ----- ----------- --------- ----------- ----------- -------------
0-30 $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
31-60 --
61-90 --
91 + --
---------- ---------- ---------- ---------- ---------- ----------
TOTAL $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
========== ========== ========== ========== ========== ==========
AGING OF ACCOUNTS RECEIVABLE(3)
MONTH
-----
0-30 $ 50,234 $ 50,234 $ -- $ -- $ -- $ --
31-60 (764) (764) -- -- --
61-90 9,179 9,179 -- -- --
91 + 4,962 4,962 -- -- --
---------- ----------- ---------- ---------- ---------- ----------
TOTAL $ 63,611 $63,610,978 $ -- $ -- $ -- $ --
========== =========== ========== ========== ========== ==========
(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
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE MONTH ENDING SEPTEMBER 30, 2001
STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS,
HOLDINGS, INC. INC. ENERGY, INC. INC.
MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ -- $ 23,943,367 $ 158,149 $ 1,311,018
TOTAL COST OF REVENUES -- 25,292,855 158,149 1,399,297
GROSS PROFIT $ -- $ (1,349,488) $ -- $ (88,279)
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (990) $ 707,114 $ -- $ 140,250
Insiders Compensation -- 188,763 -- --
Professional Fees -- 3,392,350 -- --
Other (Earnings in Joint Venture) -- 616,375 (616,375) --
TOTAL OPERATING EXPENSE $ (990) $ 4,904,602 $ (616,375) $ 140,250
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 990 $ (6,254,090) $ 616,375 $ (228,529)
INTEREST EXPENSE (includes amort of debt fees) (73,954) 2,321,833 -- 614,434
DEPRECIATION -- 2,155,512 -- 48,293
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ (73,954) $ 4,477,345 $ -- $ 662,727
===================================================================================================================================
NET INCOME BEFORE TAXES $ 74,944 $ (10,731,435) $ 616,375 $ (891,256)
INCOME TAXES -- 36,000 -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 74,944 $ (10,767,435) $ 616,375 $ (891,256)
===================================================================================================================================
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ (460,327) $ 1,122,478 $ 358,476 $ 2,936,623
TOTAL COST OF REVENUES -- 26,148 516,203 1,924,492
GROSS PROFIT $ (460,327) $ 1,096,330 $ (157,727) $ 1,012,131
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ -- $ 211,587 $ (74,946) $ 606,149
Insiders Compensation -- -- -- --
Professional Fees -- -- -- --
Other (Earnings in Joint Venture) -- -- -- --
TOTAL OPERATING EXPENSE $ -- $ 211,587 $ (74,946) $ 606,149
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (460,327) $ 884,743 $ (82,781) $ 405,982
INTEREST EXPENSE (includes amort of debt fees) 37,665 236,041 -- --
DEPRECIATION 23,000 485,795 -- 405,582
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 721,836 $ -- $ 405,582
===================================================================================================================================
NET INCOME BEFORE TAXES $ (520,992) $ 162,907 $ (82,781) $ 400
INCOME TAXES -- -- -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (520,992) $ 162,907 $ (82,781) $ 400
===================================================================================================================================
DEBTORS
MONTH ELIMINATIONS CONSOLIDATED
------------------ ------------------
REVENUES (MOR-1) $ 460,327 $ 29,830,111
TOTAL COST OF REVENUES 460,327 29,777,471
GROSS PROFIT $ -- $ 52,640
===========================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (465,887) 1,123,277
Insiders Compensation -- 188,763
Professional Fees -- 3,392,350
Other (Earnings in Joint Venture) -- --
TOTAL OPERATING EXPENSE $ (465,887) $ 4,704,390
===========================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 465,887 (4,651,750)
INTEREST EXPENSE (includes amort of debt fees) 465,887 3,601,906
DEPRECIATION -- 3,118,182
OTHER (INCOME) EXPENSES* -- --
OTHER ITEMS** -- --
TOTAL INT. DEPR & OTHER ITEMS $ 465,887 $ 6,720,088
===========================================================================================
NET INCOME BEFORE TAXES $ -- $ (11,371,838)
INCOME TAXES -- 36,000
===========================================================================================
NET INCOME (LOSS) (MOR-1) $ -- $ (11,407,838)
===========================================================================================
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
CASE NAME: STERLING CANADA INC. CASE NUMBER: 01-37810-H4-11
CASH RECEIPTS AND FILING TO
DISBURSEMENTS 8/31/2001(1) 9/30/01 MONTH MONTH MONTH DATE
-------------------------------------------------------------------------------------------------------------------------------
1. CASH-BEGINNING OF MONTH $ 271,082 $ 507,515 $ -- $ -- $ -- $ 271,082
RECEIPTS:
2. CASH SALES $ -- $ -- $ -- $ -- $ -- $ --
3. COLLECTION OF ACCOUNTS RECEIVABLE 2,837,627 961,439 3,799,066
4. LOANS & ADVANCES (attach list) --
5. SALE OF ASSETS --
6. OTHER (attach list) 19,739,210 736,897 20,476,107
TOTAL RECEIPTS $ 22,576,837 $ 1,698,336 $ -- $ -- $ -- $24,275,173
(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 72,245 74,086
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 35 21,180
18. OTHER (attach list) 22,317,418 1,217,610 23,535,028
TOTAL DISBURSEMENTS FROM OPERATIONS $ 22,340,404 $ 1,289,890 $ -- $ -- $ -- $23,630,294
19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- $ --
20. U.S. TRUSTEE FEES -- -- -- -- -- --
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --
TOTAL DISBURSEMENTS $ 22,340,404 $ 1,289,890 $ -- $ -- $ -- $23,630,294
22. NET CASH FLOW $ 236,433 $ 408,446 $ -- $ -- $ -- $ 644,879
23. CASH - END OF MONTH (MOR-2) $ 507,515 $ 915,961 $ -- $ -- $ -- $ 915,961
(1) Represents the period 7/17/01 through 8/31/01.
MOR-7 *Applies to Individual debtor's only.
CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND MONTH
DISBURSEMENTS: 8/31/2001 (1) 9/30/01
--------------------------------------------------------------------------------------------------------------------
6. OTHER RECEIPTS:
Interest Income $ 1,107 $ 185.38
401(k) Plan Refund
Cobra Insurance Payment
Miscellaneous 3,887
Emission Credits
Loan Advance from a subsidiary - Sterling NRO 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)
cash receipts re Inter company AR 827,114
rec'd in error and to be returned in Oct 01. 234,658
TOTAL OTHER RECEIPTS $ 19,739,210 $ 736,897 $ --
18. OTHER DISBURSEMENTS:
Workover Expense
Capital Expenditures
Interest Payment
Pre-petition checks voided in current period
Advance to Parent company - Sterling Chemicals 22,317,418 329,798
cash disbursements re Inter company AP 663,621
CIT revolver cash sweep 155,838
Capital contribution to SPCUS 68,353
TOTAL OTHER DISBURSEMENTS $ 22,317,418 $ 1,217,610 $ --
OTHER CASH RECEIPTS AND MONTH MONTH FILING TO
DISBURSEMENTS: DATE
--------------------------------------------------------------------------- -----------------------------------------
6. OTHER RECEIPTS:
Interest Income $ 1,293
401(k) Plan Refund --
Cobra Insurance Payment --
Miscellaneous 3,887
Emission Credits --
Loan Advance from a subsidiary - Sterling NRO 19,409,155
Funds belonging to Sterling Pulp Chemicals Ltd. --
rec'd in error and to be returned in Sep 01. --
cash receipts re Inter company AR 827,114
rec'd in error and to be returned in Oct 01. 234,658
TOTAL OTHER RECEIPTS $ -- $ -- $ 20,476,107
18. OTHER DISBURSEMENTS:
Workover Expense --
Capital Expenditures --
Interest Payment --
Pre-petition checks voided in current period --
Advance to Parent company - Sterling Chemicals -- 22,647,216
cash disbursements re Inter company AP 663,621
CIT revolver cash sweep 155,838
Capital contribution to SPCUS 68,353
TOTAL OTHER DISBURSEMENTS $ -- $ -- $ 23,535,028
(1)Represents the period 7/17/01 through 8/31/01.
MOR-7 ATTACHMENT
CASE NAME: Sterling Canada, Inc. CASE NUMBER: 01-37810-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 31, 2001
BANK NAME Bank One Chase Manhatten Chase Manhatten CIBC
ACCOUNT NUMBER 5561841 001-00526970 001-03317054 77-01713
ACCOUNT TYPE Lock Box General Checking Consolidated Checking TOTAL
------------ ------------ --------------- --------------- ------------ ---------- ------------
BANK BALANCE $ 78,672 $ 17,259 $ 20,486 $ 116,416 $ 391,099 $ 507,515
DEPOSIT IN TRANSIT --
OUTSTANDING CHECKS -- --
ADJUSTED BANK BALANCE $ 78,672 $ 17,259 $ 20,486 $ 116,416 $ 391,099 $ -- $ -- $ 507,515
BEGINNING CASH - PER BOOKS $ -- $ -- $ 261,397 $ 261,397 $ 9,633 $ 271,030
RECEIPTS 2,630,967 358,211 19,307,266 22,296,444 424,101 $ 22,720,545
TRANSFERS BETWEEN ACCOUNTS --
(WITHDRAWAL)CONTRIBUTION- --
BY INDIVIDUAL DEBTOR MFR-2 --
CHECKS/OTHER DISBURSEMENTS (2,552,295) (341,052) (19,548,077) (22,441,424) (42,635) $(22,484,059)
ENDING CASH - PER BOOKS $ 78,672 $ 17,159 $ 20,586 $ 116,416 $ 391,099 $ -- $ -- $ 507,514
MOR-8
CASE NAME: STERLING CANADA INC. CASE NUMBER: 01-37810-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 30, 2001
BANK NAME Bank One Chase Manhatten Chase Manhatten CIBC
ACCOUNT NUMBER 5561841 001-00526970 001-03317054 Consolidated 77-01713
ACCOUNT TYPE Lock Box General Checking Checking
-------------- --------- ----------------- ---------------- ------------- ---------
BANK BALANCE $ 1,000 $ 810,100 $ 90,883 $ 901,983 $ 56,955
DEPOSIT IN TRANSIT 19,781
OUTSTANDING CHECKS -- (62,757)
ADJUSTED BANK BALANCE $ 1,000 $ 810,100 $ 90,883 $ 901,983 $ 13,979 $ -- $ --
BEGINNING CASH - PER BOOKS $ 78,672 $ 17,159 $ 20,586 $ 116,416 $391,099
RECEIPTS 61,007 810,000 823,257 1,694,265 4,072
TRANSFERS BETWEEN ACCOUNTS (20,000) (20,000) 20,000
(WITHDRAWAL)CONTRIBUTION-
BY INDIVIDUAL DEBTOR MFR-2
CHECKS/OTHER DISBURSEMENTS (138,679) (17,159) (732,860) (888,698) (401,192)
ENDING CASH - PER BOOKS $ 1,000 $ 810,000 $ 90,983 $ 901,983 $ 13,979 $ -- $ --
BANK NAME
ACCOUNT NUMBER
ACCOUNT TYPE TOTAL
-------------- -----------
BANK BALANCE $ 958,937
DEPOSIT IN TRANSIT $ 19,781
OUTSTANDING CHECKS $ (62,757)
ADJUSTED BANK BALANCE $ 915,961
BEGINNING CASH - PER BOOKS $ 507,514
RECEIPTS $ 1,698,337
TRANSFERS BETWEEN ACCOUNTS $ --
(WITHDRAWAL)CONTRIBUTION- $ --
BY INDIVIDUAL DEBTOR MFR-2 $ --
CHECKS/OTHER DISBURSEMENTS $(1,289,890)
ENDING CASH - PER BOOKS $ 915,961
MOR-8
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
h91714ex99-7.txt
MONTHLY OPERATING REPORT F/STERLING PULP CHEM US
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: SEPTEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/01
-----------------------------------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 595,406 $ 358,476 $ - $ - $ - $ -
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (61,516) $ (82,781) $ - $ - $ - $ -
NET INCOME (LOSS) (MOR-6) $ (61,516) $ (82,781) $ - $ - $ - $ -
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? NO If so, describe
--------------------------------------------------------------------------------
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
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
Page 3 of 11
10/18/01
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.
2 Automobile Liability $92,955 (AFCO)
3 Excess Liability $451,090 Annual - Half on 7/1/01; 1/2
Excess to $1 Million SIR on 1/1/02.
4 Excess Liability Included
5 Excess Liability $295,000
6 Excess Liability $241,886
7 Excess Liability $109,210
8 Excess Liability $80,938
Page 4 of 11
10/18/01
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
10 Marine Terminal $27,000 (AFCO) Min. premium &
Operators Liability and deposit.
Charterer's Legal Liability
11 Excess Marine Liability $57,375
12 Excess Marine Liability $21,250
13 Property Damage, Annual - Financed through AFCO.
Business Interruption and $4.0M (est.)
Boiler & Machinery
14 Directors & Officers $316,000 (15 mos.)
Liability
15 Excess Directors & Officers $223,700 (15 mos.)
Liability
16 Directors & Officers $115,000 (15 mos.)
Liability
Page 5 of 11
10/18/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/01/2002 Various
Depositor's Forgery Agreement. Ded. $50,000. 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 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
22 Fiduciary $10,000,000 National Union 1 year 08/21/2002 Various
Ded. $250,000 per occurrence
23 Environmental $4,000,000 per loss ECS 1 year 01/15/2002 Loss Potential
Impairment Liability $8,000,000 aggregate (Indian Harbor)
(Petrochem & Fibers)
24 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 & $14,450
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO)
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO)
20 Marine and Railroad $40,000 Annual Approx.
Cargo
21 Duty Drawback Bond $2,875
22 Fiduciary $22,000 - Financed through Imperial.
23 Environmental $106,200 - Financed through AFCO.
Impairment Liability
(Petrochem & Fibers)
24 Closure/Post Closure $40,610
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.
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED SEPTEMBER 30, 2001
(In Thousands) (Unaudited)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,371 $ 1,222 $ - $ 296
Trade accounts receivable, net - 42,057 44 3,131
Other Receivables - 2,819 - -
Due from affiliates - 19,544 11,309 4,522
Inventories - 26,899 - 8,819
Prepaid expenses 9 2,585 - -
Deferred income tax benefit - - - -
---------------------------------- ------------------------------------------------
TOTAL CURRENT ASSETS 1,380 95,126 11,353 16,768
Property, plant and equipment, net - 127,479 3,325 6,310
Deferred income taxes - - - -
Investments-Third Party - 1,500 - -
Investments in Subs 35,059 95,073 4,955 -
Other assets 7,356 24,279 - 1,428
---------------------------------- ------------------------------------------------
TOTAL ASSETS $ 43,795 $ 343,457 $ 19,633 $ 24,506
================================== ================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 1 104,081 1,676 3,582
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 57,221
Secured Debt Accrued Interest * - 20,051 - 5,055
Unsecured debt 192,878 277,260 1,110 73,391
Other / Intercompany - 201,020 - -
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - 35
Less: Unearned compensation - (458) - 458
Redeemable preferred stock 27,272 (15,769) - 15,769
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 -
Additional paid-in capital (367,555) (229,904) - 9,676
Retained earnings-Filing Date 191,191 (215,021) 15,690 (138,587)
Retained earnings-Post Filing Date 8 (23,305) 1,156 (2,094)
Pension adjustment - (135) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------- ------------------------------------------------
(176,356) (468,293) 16,847 (131,005)
Treasury stock at cost - (2,537) - -
---------------------------------- ------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (176,356) (470,830) 16,847 (131,005)
TOTAL LIABILITIES AND EQUITY $ 43,795 $ 343,457 $ 19,633 $ 24,506
================================== ================================================
$ - $ - $ - $ -
------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 916 $ - $ 170
Trade accounts receivable, net - 3,366 992 5,095
Other Receivables - 4,350 - -
Due from affiliates 2,634 43,628 835 5,969
Inventories - - 104 1,713
Prepaid expenses (283) - - 16
Deferred income tax benefit - - - -
-----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 2,351 52,260 1,931 12,963
Property, plant and equipment, net - - - 44,332
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs - 297,229 3,118 -
Other assets 2,754 7,335 - -
----------------------------------------------------------------------------------
TOTAL ASSETS $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 13 19,774 463 2,716
Pre-Petition liabilities:
Notes Payable - Secured * 3,652 67,152 - -
Secured Debt Accrued Interest * 323 5,932 - -
Unsecured debt 840 264,992 170 62,478
Other / Intercompany - 5,727 -
Deferred income taxes - - - -
Common stock held by new ESOP - - - -
Less: Unearned compensation - - - -
Redeemable preferred stock - - - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 48 - -
Additional paid-in capital - 83,348 5,438 3,118
Retained earnings-Filing Date 779 (90,595) (876) (10,908)
Retained earnings-Post Filing Date (502) 446 (146) (109)
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
----------------------------------------------------------------------------------
277 (6,753) 4,416 (7,899)
Treasury stock at cost - - - -
----------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 277 (6,753) 4,416 (7,899)
TOTAL LIABILITIES AND EQUITY $ 5,105 $ 356,824 $ 5,049 $ 57,295
==================================================================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 3,975
Trade accounts receivable, net - 54,685
Other Receivables - 7,169
Due from affiliates (81,463) 6,978
Inventories - 37,535
Prepaid expenses - 2,327
Deferred income tax benefit - -
----------- ---------------------
TOTAL CURRENT ASSETS (81,463) 112,669
Property, plant and equipment, net - 181,446
Deferred income taxes - -
Investments-Third Party - 1,500
Investments in Subs (385,026) 50,408
Other assets (1) 43,151
----------- ---------------------
TOTAL ASSETS $(466,490) $ 389,174
=========== =====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) (25,088) 107,218
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (5,378) 25,983
Unsecured debt (130,528) 742,591
Other / Intercompany (201,020) 5,727
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 27,272
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (43,602) (539,481)
Retained earnings-Filing Date - (248,327)
Retained earnings-Post Filing Date - (24,546)
Pension adjustment - (135)
Accumulated translation adj. - -
Deferred compensation - (3)
----------- ---------------------
(43,603) (812,369)
Treasury stock at cost - (2,537)
----------- ---------------------
TOTAL STOCKHOLDERS' EQUITY (43,603) (814,906)
TOTAL LIABILITIES AND EQUITY $(466,490) $ 389,174
=========== =====================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
8/31/2001(1) Sep-2001 MONTH MONTH MONTH MONTH
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 779 $ 426 $ -- $ -- $ -- $ --
ROYALTY AND REVENUE PAYABLE -- -- -- -- -- --
NOTES PAYABLE - INSURANCE -- -- -- -- -- --
TAX PAYABLE: -- -- -- -- -- --
Federal Payroll Taxes -- -- -- -- -- --
State Payroll & Sales -- -- -- -- -- --
Ad Valorem Taxes -- -- -- -- -- --
Other Taxes (Property/franchise) -- -- -- -- -- --
TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ --
SECURED DEBT POST-PETITION -- -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- -- -- -- -- --
OTHER ACCRUED LIABILITIES:
1. General and Administrative Costs 1 37 -- -- -- --
2. Lease Operating Expenses/Capital -- -- -- -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 780 $ 463 $ -- $ -- $ -- $ --
====================================================================================================================================
*Payment Requires Court Approval
(1) Represents the period 07/17/01 thru 08/31/01.
MOR-4
CONSOLIDATED DEBTORS(1)
(IN THOUSANDS)
AGING OF POST-PETITION LIABILITIES(2)
MONTH 09/30/2001
-----------------------
================================================================================================================================
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
================================================================================================================================
0-30 $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
--------------------------------------------------------------------------------------------------------------------------------
31-60 --
--------------------------------------------------------------------------------------------------------------------------------
61-90 --
--------------------------------------------------------------------------------------------------------------------------------
91 + --
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
================================================================================================================================
AGING OF ACCOUNTS RECEIVABLE(3)
================================================================================================================================
MONTH
================================================================================================================================
0-30 $ 50,234 $ 50,234 $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------------------------
31-60 (764) (764) -- -- --
--------------------------------------------------------------------------------------------------------------------------------
61-90 9,179 9,179 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
91 + 4,962 4,962 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 63,611 $ 63,610,978 $ -- $ -- $ -- $ --
================================================================================================================================
(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
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE MONTH ENDING SEPTEMBER 30, 2001
STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS,
HOLDINGS, INC. INC. ENERGY, INC. INC.
MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ -- $ 23,943,367 $ 158,149 $ 1,311,018
TOTAL COST OF REVENUES -- 25,292,855 158,149 1,399,297
GROSS PROFIT $ -- $ (1,349,488) $ -- $ (88,279)
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (990) $ 707,114 $ -- $ 140,250
Insiders Compensation -- 188,763 -- --
Professional Fees -- 3,392,350 -- --
Other (Earnings in Joint Venture) -- 616,375 (616,375) --
TOTAL OPERATING EXPENSE $ (990) $ 4,904,602 $ (616,375) $ 140,250
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 990 $ (6,254,090) $ 616,375 $ (228,529)
INTEREST EXPENSE (includes amort of debt fees) (73,954) 2,321,833 -- 614,434
DEPRECIATION -- 2,155,512 -- 48,293
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ (73,954) $ 4,477,345 $ -- $ 662,727
===================================================================================================================================
NET INCOME BEFORE TAXES $ 74,944 $ (10,731,435) $ 616,375 $ (891,256)
INCOME TAXES -- 36,000 -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 74,944 $ (10,767,435) $ 616,375 $ (891,256)
===================================================================================================================================
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ (460,327) $ 1,122,478 $ 358,476 $ 2,936,623
TOTAL COST OF REVENUES -- 26,148 516,203 1,924,492
GROSS PROFIT $ (460,327) $ 1,096,330 $ (157,727) $ 1,012,131
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ -- $ 211,587 $ (74,946) $ 606,149
Insiders Compensation -- -- -- --
Professional Fees -- -- -- --
Other (Earnings in Joint Venture) -- -- -- --
TOTAL OPERATING EXPENSE $ -- $ 211,587 $ (74,946) $ 606,149
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (460,327) $ 884,743 $ (82,781) $ 405,982
INTEREST EXPENSE (includes amort of debt fees) 37,665 236,041 -- --
DEPRECIATION 23,000 485,795 -- 405,582
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 721,836 $ -- $ 405,582
===================================================================================================================================
NET INCOME BEFORE TAXES $ (520,992) $ 162,907 $ (82,781) $ 400
INCOME TAXES -- -- -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (520,992) $ 162,907 $ (82,781) $ 400
===================================================================================================================================
DEBTORS
MONTH ELIMINATIONS CONSOLIDATED
------------------ ------------------
REVENUES (MOR-1) $ 460,327 $ 29,830,111
TOTAL COST OF REVENUES 460,327 29,777,471
GROSS PROFIT $ -- $ 52,640
===========================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (465,887) 1,123,277
Insiders Compensation -- 188,763
Professional Fees -- 3,392,350
Other (Earnings in Joint Venture) -- --
TOTAL OPERATING EXPENSE $ (465,887) $ 4,704,390
===========================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 465,887 (4,651,750)
INTEREST EXPENSE (includes amort of debt fees) 465,887 3,601,906
DEPRECIATION -- 3,118,182
OTHER (INCOME) EXPENSES* -- --
OTHER ITEMS** -- --
TOTAL INT. DEPR & OTHER ITEMS $ 465,887 $ 6,720,088
===========================================================================================
NET INCOME BEFORE TAXES $ -- $ (11,371,838)
INCOME TAXES -- 36,000
===========================================================================================
NET INCOME (LOSS) (MOR-1) $ -- $ (11,407,838)
===========================================================================================
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
CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
====================================================================================================================================
CASH RECEIPTS AND 8/31/2001 (1) 9/30/01 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.
CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-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 - - - - - - -
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
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
CASE NAME: Sterling Pulp Chemicals US, Inc. CASE NUMBER: 01-37811-H4-11
CASH ACCOUNT RECONCILIATION
MONTH OF 09/30/01
---------------------------------
===========================================================================================================================
BANK NAME N/A
---------------------------------------------------------------------------------------------------------------------------
ACCOUNT NUMBER
---------------------------------------------------------------------------------------------------------------------------
ACCOUNT TYPE TOTAL
------------ -----
---------------------------------------------------------------------------------------------------------------------------
BANK BALANCE $ -
---------------------------------------------------------------------------------------------------------------------------
DEPOSIT IN TRANSIT -
---------------------------------------------------------------------------------------------------------------------------
OUTSTANDING CHECKS -
---------------------------------------------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE $ - $ - $ - $ - $ - $ - $ - $ - $ -
---------------------------------------------------------------------------------------------------------------------------
BEGINNING CASH - PER BOOS $ -
---------------------------------------------------------------------------------------------------------------------------
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
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
h91714ex99-8.txt
MONTHLY OPERATING REPORT F/STERLING PULP CHEM INC
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: SEPTEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/01
---------------------------------------------------------------------------------------------------
REVENUES (MOR-6) $ 4,044,462 $2,936,623 $-- $-- $-- $--
INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 503,539 405,982 $-- $-- $-- $--
NET INCOME (LOSS) (MOR-6) $ (109,322) 400 $-- $-- $-- $--
PAYMENTS TO INSIDERS (MOR-9) $ -- -- $-- $-- $-- $--
PAYMENTS TO PROFESSIONALS (MOR-9) $ -- -- $-- $-- $-- $--
TOTAL DISBURSEMENTS (MOR-7) $ 6,975,175 $5,097,690 $-- $-- $-- $--
***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? NO If so, describe
-------------------------------------------------------------------------------
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
Page 3 of 13
10/18/01
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.
2 Automobile Liability $92,955 (AFCO)
3 Excess Liability $451,090 Annual - Half on 7/1/01; 1/2
Excess to $1 Million SIR on 1/1/02.
4 Excess Liability Included
5 Excess Liability $295,000
6 Excess Liability $241,886
7 Excess Liability $109,210
8 Excess Liability $80,938
Page 4 of 13
10/18/01
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
10 Marine Terminal $27,000 (AFCO) Min. premium &
Operators Liability and deposit
Charterer's Legal
Liability
11 Excess Marine Liability $57,375
12 Excess Marine Liability $21,250
13 Property Damage, Annual - Financed through AFCO.
Business Interruption and $4.0M (est.)
Boiler & Machinery
14 Directors & $316,000 (15 mos.)
Officers Liability
15 Excess Directors & $223,700 (15 mos.)
Officers Liability
16 Directors & Officers $115,000 (15 mos.)
Liability
Page 5 of 13
10/18/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE
--- ----------------- -------------- ------------- ---- ------ -------------
17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/01/2002 Various
Depositor's Forgery Agreement. Ded. $50,000. 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 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit
International
22 Fiduciary $10,000,000 National Union 1 year 08/21/2002 Various
Ded. $250,000 per occurrence
23 Environmental $4,000,000 per loss ECS 1 year 01/15/2002 Loss Potential
Impairment Liability $8,000,000 aggregate (Indian Harbor)
(Petrochem & Fibers)
24 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 & $14,450
Depositor's Forgery
18 Hull & Machinery and $29,378 (AFCO)
Protection & Indemnity
19 Pollution Insurance $4,258 (AFCO)
20 Marine and Railroad $40,000 Annual Approx.
Cargo
21 Duty Drawback Bond $2,875
22 Fiduciary $22,000 - Financed through Imperial.
23 Environmental $106,200 - Financed through AFCO.
Impairment Liability
(Petrochem & Fibers)
24 Closure/Post Closure $40,610
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.
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS)
CONSOLIDATING BALANCE SHEET
FOR THE PERIOD ENDED SEPTEMBER 30, 2001
(In Thousands) (Unaudited)
--------------------------------------------------------------------------------------------
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS
HOLDINGS INC. INC. ENERGY, INC. INC.
ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 1,371 $ 1,222 $ - $ 296
Trade accounts receivable, net - 42,057 44 3,131
Other Receivables - 2,819 - -
Due from affiliates - 19,544 11,309 4,522
Inventories - 26,899 - 8,819
Prepaid expenses 9 2,585 - -
Deferred income tax benefit - - - -
---------------------------------- -------------------------------------------------
TOTAL CURRENT ASSETS 1,380 95,126 11,353 16,768
Property, plant and equipment, net - 127,479 3,325 6,310
Deferred income taxes - - - -
Investments-Third Party - 1,500 - -
Investments in Subs 35,059 95,073 4,955 -
Other assets 7,356 24,279 - 1,428
---------------------------------- -------------------------------------------------
TOTAL ASSETS $ 43,795 $ 343,457 $ 19,633 $ 24,506
================================== =================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 1 104,081 1,676 3,582
Pre-Petition liabilities:
Notes Payable - Secured * - 227,848 - 57,221
Secured Debt Accrued Interest * - 20,051 - 5,055
Unsecured debt 192,878 277,260 1,110 73,391
Other / Intercompany - 201,020 - -
Deferred income taxes - - - -
Common stock held by new ESOP - 254 - 35
Less: Unearned compensation - (458) - 458
Redeemable preferred stock 27,272 (15,769) - 15,769
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 75 1 -
Additional paid-in capital (367,555) (229,904) - 9,676
Retained earnings-Filing Date 191,191 (215,021) 15,690 (138,587)
Retained earnings-Post Filing Date 8 (23,305) 1,156 (2,094)
Pension adjustment - (135) - -
Accumulated translation adj. - - - -
Deferred compensation - (3) - -
---------------------------------- -------------------------------------------------
(176,356) (468,293) 16,847 (131,005)
Treasury stock at cost - (2,537) - -
---------------------------------- -------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY (176,356) (470,830) 16,847 (131,005)
TOTAL LIABILITIES AND EQUITY $ 43,795 $ 343,457 $ 19,633 $ 24,506
================================== =================================================
$ - $ - $ - $ -
------------------------------------- ----------------------------------------------------
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
ASSETS 01-37809-H4-11 0-37810-H4-1 1 01-37811-H4-11 01-37812-H4-11
------------------------------------- ----------------------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 916 $ - $ 170
Trade accounts receivable, net - 3,366 992 5,095
Other Receivables - 4,350 - -
Due from affiliates 2,634 43,628 835 5,969
Inventories - - 104 1,713
Prepaid expenses (283) - - 16
Deferred income tax benefit - - - -
----------------------------------- -----------------------------------------------
TOTAL CURRENT ASSETS 2,351 52,260 1,931 12,963
Property, plant and equipment, net - - - 44,332
Deferred income taxes - - - -
Investments-Third Party - - - -
Investments in Subs - 297,229 3,118 -
Other assets 2,754 7,335 - -
---------------------------------- -----------------------------------------------
TOTAL ASSETS $ 5,105 $ 356,824 $ 5,049 $ 57,295
================================== ===============================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) 13 19,774 463 2,716
Pre-Petition liabilities:
Notes Payable - Secured * 3,652 67,152 - -
Secured Debt Accrued Interest * 323 5,932 - -
Unsecured debt 840 264,992 170 62,478
Other / Intercompany - 5,727 -
Deferred income taxes - - - -
Common stock held by new ESOP - - - -
Less: Unearned compensation - - - -
Redeemable preferred stock - - - -
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - 48 - -
Additional paid-in capital - 83,348 5,438 3,118
Retained earnings-Filing Date 779 (90,595) (876) (10,908)
Retained earnings-Post Filing Date (502) 446 (146) (109)
Pension adjustment - - - -
Accumulated translation adj. - - - -
Deferred compensation - - - -
---------------------------------- -----------------------------------------------
277 (6,753) 4,416 (7,899)
Treasury stock at cost - - - -
---------------------------------- -----------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 277 (6,753) 4,416 (7,899)
TOTAL LIABILITIES AND EQUITY $ 5,105 $ 356,824 $ 5,049 $ 57,295
================================== ===============================================
$ - $ - $ - $ -
------------------------------------
DEBTORS
ASSETS ELIMINATIONS CONSOLIDATED
------------------------------------
Current Assets:
Cash and cash equivalents $ - $ 3,975
Trade accounts receivable, net - 54,685
Other Receivables - 7,169
Due from affiliates (81,463) 6,978
Inventories - 37,535
Prepaid expenses - 2,327
Deferred income tax benefit - -
----------- ---------------------
TOTAL CURRENT ASSETS (81,463) 112,669
Property, plant and equipment, net - 181,446
Deferred income taxes - -
Investments-Third Party - 1,500
Investments in Subs (385,026) 50,408
Other assets (1) 43,151
----------- ---------------------
TOTAL ASSETS $(466,490) $ 389,174
=========== =====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Post Petition liabilities (MOR-4) (25,088) 107,218
Pre-Petition liabilities:
Notes Payable - Secured * (60,873) 295,000
Secured Debt Accrued Interest * (5,378) 25,983
Unsecured debt (130,528) 742,591
Other / Intercompany (201,020) 5,727
Deferred income taxes - -
Common stock held by new ESOP - 289
Less: Unearned compensation - -
Redeemable preferred stock - 27,272
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value (1) 123
Additional paid-in capital (43,602) (539,481)
Retained earnings-Filing Date - (248,327)
Retained earnings-Post Filing Date - (24,546)
Pension adjustment - (135)
Accumulated translation adj. - -
Deferred compensation - (3)
----------- ---------------------
(43,603) (812,369)
Treasury stock at cost - (2,537)
----------- ---------------------
TOTAL STOCKHOLDERS' EQUITY (43,603) (814,906)
TOTAL LIABILITIES AND EQUITY $(466,490) $ 389,174
=========== =====================
$ - $ -
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a
percentage is pushed down to the subsidiaries.
MOR 2 - 3
CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------------------
8/31/2001(1) Sep-2001 MONTH MONTH MONTH MONTH
----------------------------------------------------------------------------------------------
TRADE ACCOUNTS PAYABLE $ 1,029 $ 2,220 $ -- $ -- $ --
ROYALTY AND REVENUE PAYABLE -- -- -- -- --
NOTES PAYABLE - INSURANCE -- -- -- -- --
TAX PAYABLE: -- --
Federal Payroll Taxes -- -- -- -- --
State Payroll & Sales -- -- -- -- --
Ad Valorem Taxes -- -- -- -- --
Other Taxes (Property/franchise) 40 50 -- -- --
TOTAL TAXES PAYABLE $ 40 $ 50 $ -- $ -- $ -- $ --
SECURED DEBT POST-PETITION -- -- -- -- --
ACCRUED INTEREST PAYABLE -- -- -- -- --
*ACCRUED PROFESSIONAL FEES: -- -- -- -- --
OTHER ACCRUED LIABILITIES: 1208
1. General and Administrative Costs 343 447 -- -- --
2. Lease Operating Expenses/Capital -- -- --
TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2,620 $ 2,716 $ -- $ -- $ -- $ --
====================================================================================================================================
*Payment Requires Court Approval
(1) Represents the period 07/17/01 thru 08/31/01.
MOR-4
CONSOLIDATED DEBTORS(1)
(IN THOUSANDS)
AGING OF POST-PETITION LIABILITIES(2)
MONTH 09/30/2001
-----------------------
================================================================================================================================
AD-VALOREM, ROYALTY
DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE
================================================================================================================================
0-30 $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
--------------------------------------------------------------------------------------------------------------------------------
31-60 --
--------------------------------------------------------------------------------------------------------------------------------
61-90 --
--------------------------------------------------------------------------------------------------------------------------------
91 + --
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 107,219 $ 105,518 $ 5 $ 34 $ 1,662 $ --
================================================================================================================================
AGING OF ACCOUNTS RECEIVABLE(3)
================================================================================================================================
MONTH
================================================================================================================================
0-30 $ 50,234 $ 50,234 $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------------------------------------
31-60 (764) (764) -- -- --
--------------------------------------------------------------------------------------------------------------------------------
61-90 9,179 9,179 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
91 + 4,962 4,962 -- -- --
--------------------------------------------------------------------------------------------------------------------------------
TOTAL $ 63,611 $ 63,610,978 $ -- $ -- $ -- $ --
================================================================================================================================
(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
CASE NAME: STERLING CHEMICALS HOLDINGS, INC (ALL DEBTORS)
FOR THE MONTH ENDING SEPTEMBER 30, 2001
STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS,
HOLDINGS, INC. INC. ENERGY, INC. INC.
MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ -- $ 23,943,367 $ 158,149 $ 1,311,018
TOTAL COST OF REVENUES -- 25,292,855 158,149 1,399,297
GROSS PROFIT $ -- $ (1,349,488) $ -- $ (88,279)
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (990) $ 707,114 $ -- $ 140,250
Insiders Compensation -- 188,763 -- --
Professional Fees -- 3,392,350 -- --
Other (Earnings in Joint Venture) -- 616,375 (616,375) --
TOTAL OPERATING EXPENSE $ (990) $ 4,904,602 $ (616,375) $ 140,250
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 990 $ (6,254,090) $ 616,375 $ (228,529)
INTEREST EXPENSE (includes amort of debt fees) (73,954) 2,321,833 -- 614,434
DEPRECIATION -- 2,155,512 -- 48,293
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ (73,954) $ 4,477,345 $ -- $ 662,727
===================================================================================================================================
NET INCOME BEFORE TAXES $ 74,944 $ (10,731,435) $ 616,375 $ (891,256)
INCOME TAXES -- 36,000 -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ 74,944 $ (10,767,435) $ 616,375 $ (891,256)
===================================================================================================================================
STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP
INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC.
MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11
------------------ ------------------ ------------------ ------------------
REVENUES (MOR-1) $ (460,327) $ 1,122,478 $ 358,476 $ 2,936,623
TOTAL COST OF REVENUES -- 26,148 516,203 1,924,492
GROSS PROFIT $ (460,327) $ 1,096,330 $ (157,727) $ 1,012,131
===================================================================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ -- $ 211,587 $ (74,946) $ 606,149
Insiders Compensation -- -- -- --
Professional Fees -- -- -- --
Other (Earnings in Joint Venture) -- -- -- --
TOTAL OPERATING EXPENSE $ -- $ 211,587 $ (74,946) $ 606,149
===================================================================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (460,327) $ 884,743 $ (82,781) $ 405,982
INTEREST EXPENSE (includes amort of debt fees) 37,665 236,041 -- --
DEPRECIATION 23,000 485,795 -- 405,582
OTHER (INCOME) EXPENSES* -- -- -- --
OTHER ITEMS** -- -- -- --
TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 721,836 $ -- $ 405,582
===================================================================================================================================
NET INCOME BEFORE TAXES $ (520,992) $ 162,907 $ (82,781) $ 400
INCOME TAXES -- -- -- --
===================================================================================================================================
NET INCOME (LOSS) (MOR-1) $ (520,992) $ 162,907 $ (82,781) $ 400
===================================================================================================================================
DEBTORS
MONTH ELIMINATIONS CONSOLIDATED
------------------ ------------------
REVENUES (MOR-1) $ 460,327 $ 29,830,111
TOTAL COST OF REVENUES 460,327 29,777,471
GROSS PROFIT $ -- $ 52,640
===========================================================================================
OPERATING EXPENSES:
Selling, General & Administrative $ (465,887) 1,123,277
Insiders Compensation -- 188,763
Professional Fees -- 3,392,350
Other (Earnings in Joint Venture) -- --
TOTAL OPERATING EXPENSE $ (465,887) $ 4,704,390
===========================================================================================
INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 465,887 (4,651,750)
INTEREST EXPENSE (includes amort of debt fees) 465,887 3,601,906
DEPRECIATION -- 3,118,182
OTHER (INCOME) EXPENSES* -- --
OTHER ITEMS** -- --
TOTAL INT. DEPR & OTHER ITEMS $ 465,887 $ 6,720,088
===========================================================================================
NET INCOME BEFORE TAXES $ -- $ (11,371,838)
INCOME TAXES -- 36,000
===========================================================================================
NET INCOME (LOSS) (MOR-1) $ -- $ (11,407,838)
===========================================================================================
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
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
DISBURSEMENTS
---------------------------------------------------------------------------------------------------------------------
1. CASH-BEGINNING OF MONTH $ 308,953 $ (78,711) $ -- $ -- $ -- $ --
------------ ------------ ----- ----- ----- ------
RECEIPTS:
2. CASH SALES $ -- $ -- $ -- $ -- $ -- $ --
------------ ------------ ----- ----- ----- ------
3. COLLECTION OF ACCOUNTS RECEIVABLE 4,593,479 2,187,309 -- -- -- --
------------ ------------ ----- ----- ----- ------
4. LOANS & ADVANCES (attach list) -- -- -- -- -- --
------------ ------------ ----- ----- ----- ------
5. SALE OF ASSETS -- -- -- -- -- --
------------ ------------ ----- ----- ----- ------
6. OTHER (attach list) 1,994,032 3,159,466 -- -- -- --
------------ ------------ ----- ----- ----- ------
TOTAL RECEIPTS $ 6,587,511 $ 5,346,775 $ -- $ -- $ -- $ --
------------ ------------ ----- ----- ----- ------
(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 -- -- -- -- -- --
------------ ------------ ----- ----- ----- ------
10. SECURED/RENTAL/LEASES 4,002 2,538 -- -- -- --
------------ ------------ ----- ----- ----- ------
11. UTILITIES 548,000 1,077,734 -- -- -- --
------------ ------------ ----- ----- ----- ------
12. INSURANCE -- -- -- -- -- --
------------ ------------ ----- ----- ----- ------
13. INVENTORY PURCHASES 188,215 251,647 -- -- -- --
------------ ------------ ----- ----- ----- ------
14. VEHICLE EXPENSES -- -- -- -- -- --
------------ ------------ ----- ----- ----- ------
15. TRAVEL & ENTERTAINMENT 1,606 487 -- -- -- --
------------ ------------ ----- ----- ----- ------
16. REPAIRS, MAINTENANCE & SUPPLIES 135,944 71,367 -- -- -- --
------------ ------------ ----- ----- ----- ------
17. ADMINISTRATIVE & SELLING 254,459 228,571 -- -- -- --
------------ ------------ ----- ----- ----- ------
18. OTHER (attach list) 5,842,948 3,465,346 -- -- -- --
------------ ------------ ----- ----- ----- ------
TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,975,175 $ 5,097,690 $ -- $ -- $ -- $ --
------------ ------------ ----- ----- ----- ------
19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- $ --
------------ ------------ ----- ----- ----- ------
20. U.S. TRUSTEE FEES -- -- -- -- -- --
------------ ------------ ----- ----- ----- ------
21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --
------------ ------------ ----- ----- ----- ------
TOTAL DISBURSEMENTS $ 6,975,175 $ 5,097,690 $ -- $ -- $ -- $ --
------------ ------------ ----- ----- ----- ------
22. NET CASH FLOW $ (387,664) $ 249,085 $ -- $ -- $ -- $ --
------------ ------------ ----- ----- ----- ------
23. CASH - END OF MONTH (MOR-2) $ (78,711) $ 170,374 $ -- $ -- $ -- $ --
============ ============ ===== ==== ===== ======
===================================================================
CASH RECEIPTS AND FILING TO
DISBURSEMENTS DATE
-------------------------------------------------------------------
1. CASH-BEGINNING OF MONTH $ 308,953
-----------
RECEIPTS:
2. CASH SALES $ --
-----------
3. COLLECTION OF ACCOUNTS RECEIVABLE 6,780,788
-----------
4. LOANS & ADVANCES (attach list) --
-----------
5. SALE OF ASSETS --
-----------
6. OTHER (attach list) 5,153,498
-----------
TOTAL RECEIPTS $11,934,286
-----------
(Withdrawal)Contribution by Individual Debtor MFR-2* N/A
-----------
DISBURSEMENTS:
7. NET PAYROLL $ --
-----------
8. PAYROLL TAXES PAID --
-----------
9. SALES, USE & OTHER TAXES PAID --
-----------
10. SECURED/RENTAL/LEASES 6,540
-----------
11. UTILITIES 1,625,734
-----------
12. INSURANCE --
-----------
13. INVENTORY PURCHASES 439,862
-----------
14. VEHICLE EXPENSES --
-----------
15. TRAVEL & ENTERTAINMENT 2,094
-----------
16. REPAIRS, MAINTENANCE & SUPPLIES 207,312
-----------
17. ADMINISTRATIVE & SELLING 483,030
-----------
18. OTHER (attach list) 9,308,294
-----------
TOTAL DISBURSEMENTS FROM OPERATIONS $12,072,864
-----------
19. PROFESSIONAL FEES $ --
-----------
20. U.S. TRUSTEE FEES --
-----------
21. OTHER REORGANIZATION EXPENSES (attach list) --
-----------
TOTAL DISBURSEMENTS $12,072,864
-----------
22. NET CASH FLOW $ (138,579)
-----------
23. CASH - END OF MONTH (MOR-2) $ 170,374
===========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 *Applies to Individual debtor's only.
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 co. SPC LTD 448,032 120,020 -- -- -- -- 568,052
---------- ---------- ---- ---- ---- ---- ----------
Cash advance from Sterling Chemicals 1,546,000 1,750,000 -- -- -- -- 3,296,000
---------- ---------- ---- ---- ---- ---- ----------
cash receipts re Inter company AR -- 1,289,446
---------- ---------- ---- ---- ---- ---- ----------
TOTAL OTHER RECEIPTS $1,994,032 $3,159,466 $ -- $ -- $ -- $ -- $3,864,052
---------- ---------- ---- ---- ---- ---- ----------
18.OTHER DISBURSEMENTS:
Capital Expenditures $ -- $ 73,370 $ -- $ -- $ -- $ -- $73,370.39
---------- ---------- ---- ---- ---- ---- ----------
Interest Payment -- -- -- -- -- -- --
---------- ---------- ---- ---- ---- ---- ----------
Restricted Cash - Bond Funding -- -- -- -- -- -- --
---------- ---------- ---- ---- ---- ---- ----------
Pre-petition checks voided in current period -- -- -- -- -- -- --
---------- ---------- ---- ---- ---- ---- ----------
Trade AR receipts of an affiliated co. SPC LTD 596,035 -- -- -- -- -- 596,035
---------- ---------- ---- ---- ---- ---- ----------
CIT revolver cash sweep 5,246,912 2,102,530
---------- ---------- ---- ---- ---- ---- ----------
Return of investment to SPCUS 81,069 -- -- -- -- 81,069
---------- ---------- ---- ---- ---- ---- ----------
cash disbursements re Inter company AP 1,208,377
---------- ---------- ---- ---- ---- ---- ----------
TOTAL OTHER DISBURSEMENTS $5,842,948 $3,465,346 $ -- $ -- $ -- $ -- $ 750,475
========== ========== ==== ==== ==== ==== ==========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01
MOR-7 ATTACHMENT
CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11
CASH ACCOUNT RECONCILIATION
MONTH OF AUGUST 31, 2001
---------------------------------
BANK NAME Bank One Chase Manhatten Chase Manhatten First State Bank
----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT NUMBER 5589665 001-00546119 001-03317146 Consolidated 011-077-220-1
----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT TYPE Lock Box General Checking Checking TOTAL
----------------------------------------------------------------------------------------------------------------------------------
BANK BALANCE $ 41,913 $ 100 $ 1,812 $ 43,825 $ 16,452 $ 60,277
----------------------------------------------------------------------------------------------------------------------------------
DEPOSIT IN TRANSIT -
----------------------------------------------------------------------------------------------------------------------------------
OUTSTANDING CHECKS (138,873) (138,873) (115) (138,988)
----------------------------------------------------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE $ 41,913 $ 100 $ (137,061) $ (95,048) $ 16,337 $ - $ - $ (78,711)
----------------------------------------------------------------------------------------------------------------------------------
BEGINNING CASH - PER BOOKS $ 255,473 $ 100 $ 34,313 $ 289,886 $ 19,066 308,952
----------------------------------------------------------------------------------------------------------------------------------
RECEIPTS 4,429,057 604,295 1,554,158 6,587,511 - 6,587,511
----------------------------------------------------------------------------------------------------------------------------------
TRANSFERS BETWEEN ACCOUNTS -
----------------------------------------------------------------------------------------------------------------------------------
(WITHDRAWAL)CONTRIBUTION- -
----------------------------------------------------------------------------------------------------------------------------------
BY INDIVIDUAL DEBTOR MFR-2 -
----------------------------------------------------------------------------------------------------------------------------------
CHECKS/OTHER DISBURSEMENTS (4,642,617) (604,295) (1,725,534) (6,972,446) (2,729) (6,975,175)
----------------------------------------------------------------------------------------------------------------------------------
ENDING CASH - PER BOOKS $ 41,913 $ 100 $ (137,062) $ (95,049) $ 16,337 $ - $ - $ (78,713)
==================================================================================================================================
MOR-8
CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11
CASH ACCOUNT RECONCILIATION
MONTH OF SEPTEMBER 30, 2001
---------------------------------
BANK NAME Bank One Chase Manhatten Chase Manhatten First State Bank
----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT NUMBER 5589665 001-00546119 001-03317146 Consolidated 011-077-220-1
----------------------------------------------------------------------------------------------------------------------------------
ACCOUNT TYPE Lock Box General Checking Checking TOTAL
----------------------------------------------------------------------------------------------------------------------------------
BANK BALANCE $ 246,712 $ 100 $ (7,903) $ 238,908 $ 57,838 $ 296,747
----------------------------------------------------------------------------------------------------------------------------------
DEPOSIT IN TRANSIT 17,213 $ 17,213 17,213
----------------------------------------------------------------------------------------------------------------------------------
OUTSTANDING CHECKS (132,549) (132,549) (11,037) (143,586)
----------------------------------------------------------------------------------------------------------------------------------
ADJUSTED BANK BALANCE $ 246,712 $ 100 $ (123,239) $ 123,572 $ 46,801 $ - $ - $ 170,374
----------------------------------------------------------------------------------------------------------------------------------
BEGINNING CASH - PER BOOKS $ 41,913 $ 100 $ (137,062) $ (95,050) $ 16,337 (78,713)
----------------------------------------------------------------------------------------------------------------------------------
RECEIPTS 1,735,352 571,976 3,039,446 5,346,775 - 5,346,775
----------------------------------------------------------------------------------------------------------------------------------
TRANSFERS BETWEEN ACCOUNTS (44,000) (44,000) 44,000 -
----------------------------------------------------------------------------------------------------------------------------------
(WITHDRAWAL)CONTRIBUTION- -
----------------------------------------------------------------------------------------------------------------------------------
BY INDIVIDUAL DEBTOR MFR-2 -
----------------------------------------------------------------------------------------------------------------------------------
CHECKS/OTHER DISBURSEMENTS (1,530,553) (571,976) (2,981,624) (5,084,154) (13,536) (5,097,690)
----------------------------------------------------------------------------------------------------------------------------------
ENDING CASH - PER BOOKS $ 246,711 $ 100 $ (123,240) $ 123,571 $ 46,801 $ - $ - $ 170,371
==================================================================================================================================
MOR-8
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.
MOR-9