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