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