EX-99.2 4 h92775ex99-2.txt MONTHLY OPERATING RPT. 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: OCTOBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/01 10/31/2001 -------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 36,458,061 $ 23,943,367 $ 21,691,268 $ -- $ -- $ -- INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (5,663,895) $ (6,254,090) $ (1,550,037) $ -- $ -- $ -- NET INCOME (LOSS) (MOR-6) $ (12,537,900) $ (10,767,435) $ (5,850,757) $ -- $ -- $ -- PAYMENTS TO INSIDERS (MOR-9) $ 173,179 $ 188,763 $ 156,110 $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ 11,243 $ 1,408,481 $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7) $ 98,519,611 $ 60,972,958 $ 72,465,946 $ -- $ -- $ --
***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 CHEMICALS, INC. CASE NUMBER: 01-37806-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 16 11/19/01 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 16 11/19/01
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 5 of 16 11/19/01
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 Wells Fargo Bank $592,277.25 Letter of Credit Draw Crawford $ 11,785.08 workers comp insurance Unicare $ 1,948.08 benefit admin expenses Bank One $ 1,403.55 bank fees drafted out of lockbox acct ----------- TOTAL $607,413.96 =========== SUMMARY CIT Revolving Credit Facility $ -- Employee Benefits $ 1,948.08 Insurance $ 11,785.08 Other $593,680.80 ----------- TOTAL $607,413.96 ===========
STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS) CONSOLIDATING BALANCE SHEET FOR THE PERIOD ENDED OCTOBER 31, 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 $ 1,365 $ 926 $ - $ 298 Trade accounts receivable, net - 42,481 (2) 3,165 Other Receivables - 2,577 - - Due from affiliates - 20,172 12,392 3,977 Inventories - 26,722 - 8,921 Prepaid expenses 29 3,319 - 69 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,394 96,197 12,390 16,430 Property, plant and equipment, net - 126,224 3,262 6,263 Deferred income taxes - - - - Investments-Third Party - 1,500 - - Investments in Subs 35,060 95,072 4,556 - Other assets 7,337 23,831 - 1,404 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 43,791 $ 342,824 $ 20,208 $ 24,097 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 63 103,386 1,645 5,964 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 22,400 - 5,645 Unsecured debt 192,878 278,365 1,110 70,981 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - (458) - 458 Redeemable preferred stock 27,567 (15,894) - 15,891 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (232,797) - 9,339 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,085) (26,197) 2,119 (3,508) Pension adjustment - (135) - - Accumulated translation adj. - - - - Deferred compensation - (3) - - ------------------------------------------------------------------------------------ (176,717) (471,560) 17,453 (132,098) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,717) (474,097) 17,453 (132,098) TOTAL LIABILITIES AND EQUITY $ 43,791 $ 342,824 $ 20,208 $ 24,097 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 329 $ - $ 239 Trade accounts receivable, net - 2,254 938 4,681 Other Receivables - 4,357 - - Due from affiliates 2,717 46,929 1,389 6,729 Inventories - - 163 1,403 Prepaid expenses (283) - - - Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,434 53,869 2,490 13,052 Property, plant and equipment, net - - - 43,965 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 297,229 3,119 - Other assets 2,731 6,822 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,165 $ 357,920 $ 5,609 $ 57,017 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 24 19,946 1,157 2,438 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 361 6,625 - - Unsecured debt 840 265,155 170 62,478 Other / Intercompany - 5,655 - 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 (90,594) (877) (10,909) Retained earnings-Post Filing Date (491) 585 (279) (108) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 288 (6,613) 4,282 (7,899) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 288 (6,613) 4,282 (7,899) TOTAL LIABILITIES AND EQUITY $ 5,165 $ 357,920 $ 5,609 $ 57,017 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 3,157 Trade accounts receivable, net - 53,517 Other Receivables - 6,934 Due from affiliates (87,992) 6,313 Inventories - 37,209 Prepaid expenses - 3,134 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (87,992) 110,264 Property, plant and equipment, net - 179,714 Deferred income taxes - - Investments-Third Party - 6,056 Investments in Subs (385,026) 45,454 Other assets (1) 42,124 -------------------------------- TOTAL ASSETS $(473,019) $ 383,612 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (29,772) 104,851 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (6,006) 29,025 Unsecured debt (131,744) 740,233 Other / Intercompany (201,020) 5,655 Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,564 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (43,603) (542,712) Retained earnings-Filing Date - (244,777) Retained earnings-Post Filing Date - (28,964) Pension adjustment - (135) Accumulated translation adj. - - Deferred compensation - (3) -------------------------------- (43,604) (816,468) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (43,604) (819,005) TOTAL LIABILITIES AND EQUITY $(473,019) $ 383,612 ================================
* 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) 9/30/2001 10/31/2001 MONTH MONTH MONTH -------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 28,667 $ 34,262 $ 29,556 $ -- $ -- $ -- ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- -- TAX PAYABLE: -- -- -- -- -- Federal Payroll Taxes -- -- -- -- -- -- State Payroll & Sales 48 33 45 -- -- -- Ad Valorem Taxes -- -- -- -- -- -- Other Taxes 925 1,550 2,175 -- -- -- TOTAL TAXES PAYABLE $ 973 $ 1,583 $ 2,220 $ -- $ -- $ -- SECURED DEBT POST-PETITION 41,472 42,229 44,780 -- -- -- ACCRUED INTEREST PAYABLE 234 263 299 -- -- -- *ACCRUED PROFESSIONAL FEES: 2,000 4,000 4,802 -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 22,593 21,744 21,729 -- -- -- 2. Lease Operating Expenses/Capital -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 95,939 $ 104,081 $ 103,386 $ -- $ -- $ -- ==================================================================================================================================
*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 MONTH 10/31/2001 -----------------------
AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $104,850 $102,518 $ -- $ 44 $ 2,288 $ -- 31-60 -- -- 61-90 -- -- 91 + -- -- -------- -------- --------- ----------- ----------- ------------- TOTAL $104,850 $102,518 $ -- $ 44 $ 2,288 $ -- ======== ======== ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH ----- 0-30 $ 45,074 $ 45,074 $ -- $ -- $ -- $ -- 31-60 1,353 1,353 -- -- -- 61-90 2,793 2,793 -- -- -- 91 + 13,412 13,412 -- -- -- -------- -------- --------- ----------- ----------- ------------- TOTAL $ 62,632 $ 62,632 -- $ -- $ -- $ -- ======== ======== ========= =========== =========== =============
(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 OCTOBER 31, 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) $ -- $ 21,691,268 $ 155,612 $ 1,891,936 $ 83,333 TOTAL COST OF REVENUES -- 20,932,563 155,612 2,007,647 -- GROSS PROFIT $ -- $ 758,705 $ -- $ (115,711) $ 83,333 =============================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 61,848 $ 506,893 $ -- $ 193,547 $ 10,994 Insiders Compensation -- 156,110 -- -- -- Professional Fees -- 1,045,068 -- -- -- Other (Earnings in Joint Venture) -- 600,671 (600,671) -- -- TOTAL OPERATING EXPENSE $ 61,848 $ 2,308,742 $ (600,671) $ 193,547 $ 10,994 ================================================================================================================================ INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (61,848) $ (1,550,037) $ 600,671 $ (309,258) $ 72,339 INTEREST EXPENSE (includes amort of debt fees) (5,722) 2,401,351 -- 614,434 37,665 DEPRECIATION -- 1,899,369 -- 48,077 23,000 OTHER (INCOME) EXPENSES* -- -- -- -- -- OTHER ITEMS** -- -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (5,722) $ 4,300,720 $ -- $ 662,511 $ 60,665 ================================================================================================================================ NET INCOME BEFORE TAXES $ (56,126) $ (5,850,757) $ 600,671 $ (971,769) $ 11,674 INCOME TAXES -- -- 28,531 -- -- ================================================================================================================================ NET INCOME (LOSS) (MOR-1) $ (56,126) $ (5,850,757) $ 572,140 $ (971,769) $ 11,674 ================================================================================================================================
---------------------------------------------------------------------------- STERLING STERLING PULP STERLING PULP CANADA, CHEMICALS US, CHEMICALS, INC. INC. INC. DEBTORS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ---------------------------------------------------------------------------- MONTH REVENUES (MOR-1) $ 1,076,560 $ 289,723 $ 3,168,738 $ (83,333) $ 28,273,837 TOTAL COST OF REVENUES 46,938 530,074 2,134,415 (83,333) 25,723,916 GROSS PROFIT $ 1,029,622 $ (240,351) $ 1,034,323 $ -- $ 2,549,921 ============================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 242,991 $ (106,553) $ 628,398 $ (452,308) 1,085,810 Insiders Compensation -- -- -- -- 156,110 Professional Fees -- -- -- -- 1,045,068 Other (Earnings in Joint Venture) -- -- -- -- -- TOTAL OPERATING EXPENSE $ 242,991 $ (106,553) $ 628,398 $ (452,308) $ 2,286,988 ============================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 786,631 $ (133,798) $ 405,925 $ 452,308 262,933 INTEREST EXPENSE (includes amort of debt fees) 160,379 -- -- 452,308 3,660,415 DEPRECIATION 485,795 -- 405,189 -- 2,861,430 OTHER (INCOME) EXPENSES* -- -- -- -- -- OTHER ITEMS** -- -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 646,174 $ -- $ 405,189 $ 452,308 $ 6,521,845 ============================================================================================================================= NET INCOME BEFORE TAXES $ 140,457 $ (133,798) $ 736 $ -- $ (6,258,912) INCOME TAXES -- -- -- -- 28,531 ============================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 140,457 $ (133,798) $ 736 $ -- $ (6,287,443) =============================================================================================================================
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 9,346,548 1,430,565 1,217,400 -- -- -- 9,346,546 ========== ========== =========== ====== ====== ====== =========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 40,926,868 20,950,661 23,372,230 -- -- -- 85,249,759 4. LOANS & ADVANCES - CIT REVOLVER 32,400,000 30,000,000 35,600,000 -- -- -- 98,000,000 5. SALE OF ASSETS -- -- -- -- -- -- -- 6. OTHER (attach list) 17,276,763 9,809,132 12,435,815 -- -- -- 39,521,709 ---------- ---------- ---------- ------ ------ ------ ----------- TOTAL RECEIPTS 90,603,630 60,759,793 71,408,045 -- -- -- 222,771,468 ---------- ---------- ---------- ------ ------ ------ ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A ========== ========== =========== ====== ====== ====== =========== DISBURSEMENTS: 7. NET PAYROLL 2,731,080 1,885,987 1,820,918 -- -- -- 6,437,985 8. PAYROLL TAXES PAID 1,296,961 929,631 898,310 -- -- -- 3,124,901 9. SALES, USE & OTHER TAXES PAID 32,514 59,392 54,688 -- -- -- 146,595 10.SECURED/RENTAL/LEASES 150,961 223,715 267,731 -- -- -- 642,407 11.UTILITIES 2,879,979 2,190,006 5,169,539 -- -- -- 10,239,525 12.INSURANCE 1,469,518 830,148 452,349 -- -- -- 2,752,015 13.INVENTORY PURCHASES 11,912,436 10,899,473 12,316,618 -- -- -- 35,128,527 14.VEHICLE EXPENSES -- -- -- -- -- -- -- 15.TRAVEL & ENTERTAINMENT 39,341 31,508 48,462 -- -- -- 119,312 16.REPAIRS, MAINTENANCE & SUPPLIES 1,279,095 1,162,418 1,519,414 -- -- -- 3,960,928 17.ADMINISTRATIVE & SELLING 2,731,486 1,698,951 3,178,324 -- -- -- 7,608,761 18.OTHER (attach list) 73,996,239 41,050,486 45,331,111 -- -- -- 160,377,835 TOTAL DISBURSEMENTS FROM OPERATIONS 98,519,611 60,961,714 71,057,466 -- -- -- 230,538,791 19.PROFESSIONAL FEES -- 11,243 1,368,231 -- -- -- 1,379,474 20.U.S. TRUSTEE FEES -- -- 40,250 -- -- -- 40,250 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- ---------- ---------- ---------- ------ ------ ------ ----------- TOTAL DISBURSEMENTS 98,519,611 60,972,958 72,465,946 -- -- -- 231,958,515 ========== ========== =========== ====== ====== ====== =========== 22.NET CASH FLOW (7,915,980) (213,165) (1,057,901) -- -- -- (9,187,046) 23.CASH - END OF MONTH (MOR-2) 1,430,565 1,217,400 159,499 -- -- -- 159,499
(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 1,217,400.33 159,499.29 per 211 trial balance 2,156,824.40 1,222,225.02 926,043.98 ------------ ------------ ---------- difference 726,259.05 4,824.69 766,544.69 g/l acct 10123 - not a good account, s/b zero 794.70 794.70 794.70 g/l acct 10131 - account was closed before filing, bal s/b zero 4,029.99 4,029.99 4,029.99 g/l acct 10199 - cash overdraft reclass of outstanding checks 721,434.36 0.00 761,720.00 ------------ ------------ ---------- reconciled difference 726,259.05 4,824.69 766,544.69
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 -- 80,302 -- 80,302 401(k) Plan Refund -- -- -- -- Cobra Insurance Payment -- -- -- -- Miscellaneous 323,832 156,450 1,147,947 1,628,229 Royalty Owners Trust Account -- -- -- -- Emission Credits -- -- -- -- Account Transfers 16,952,931 8,360,380 11,197,868 36,511,178 Intercompany Transfers -- 1,212,000 90,000 1,302,000 ----------- ---------- ---------- ------- ------- ------ ----------- TOTAL OTHER RECEIPTS 17,276,763 9,809,132 12,435,815 -- -- -- 39,521,709 =========== ========== ========== ======= ===== ======= =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- Workover Expense -- -- -- -- Capital Expenditures 157,217 352,420 408,428 918,065 Revenue & Royalties -- -- -- -- Interest Payment -- -- 97,161 97,161 Employee Benefits 1,716,761 1,923,632 2,430,056 6,070,449 Severance tax -- -- -- -- Pre-petition checks voided in current period (30,000) -- -- (30,000) Account Transfers 16,952,931 8,360,380 11,197,868 36,511,178 CIT Revolver Payments 51,857,690 24,100,472 24,983,680 100,941,842 Intercompany Transfers 3,341,640 6,313,582 6,213,918 15,869,140 ---------- ---------- ---------- ------- ------- ------ ----------- TOTAL OTHER DISBURSEMENTS 73,996,239 41,050,486 45,331,111 -- -- -- 160,377,835 ========== ========== ========== ======= ======= ======= ===========
(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 -- 1,252,299 326,364 731,872 (1,310,115) =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 20,324,997 4. LOANS & ADVANCES - CIT REVOLVER 35,600,000 5. SALE OF ASSETS 6. OTHER (attach list) -- -- 1,137,101 2,900,000 7,584,485 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS -- 20,324,997 36,737,101 2,900,000 7,584,485 --------------- --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A =============== =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- 1,820,918 -- 8. PAYROLL TAXES PAID 898,310 9. SALES, USE & OTHER TAXES PAID 54,688 10. SECURED/RENTAL/LEASES 267,731 11. UTILITIES 5,169,539 12. INSURANCE 6,075 446,275 13. INVENTORY PURCHASES 12,194,717 121,901 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 48,462 16. REPAIRS, MAINTENANCE & SUPPLIES 1,519,414 17. ADMINISTRATIVE & SELLING 99,394 3,078,930 18. OTHER (attach list) -- 21,577,196 19,063,193 -- 620,855 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS -- 21,577,196 36,587,606 2,719,228 6,103,569 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- 1,368,231 20. U.S. TRUSTEE FEES -- -- -- -- 40,250 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS -- 21,577,196 36,587,606 2,719,228 7,512,049 =============== =============== =============== =============== =============== 22. NET CASH FLOW -- (1,252,199) 149,495 180,772 72,436 23. CASH - END OF MONTH (MOR-2) -- 100 475,859 912,644 (1,237,679) CASH RECEIPTS AND Chase Chase Wells Fargo Bank One Total DISBURSEMENTS 6301810036508 6301810028508 4496870106 5561833 Debtor ----------------- --------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH -- -- -- 216,980 1,217,400 =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,047,234 23,372,230 4. LOANS & ADVANCES - CIT REVOLVER 35,600,000 5. SALE OF ASSETS -- 6. OTHER (attach list) 658,908 4,474 -- 150,846 12,435,815 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 658,908 4,474 -- 3,198,080 71,408,045 --------------- --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A =============== =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- 1,820,918 8. PAYROLL TAXES PAID 898,310 9. SALES, USE & OTHER TAXES PAID 54,688 10. SECURED/RENTAL/LEASES 267,731 11. UTILITIES 5,169,539 12. INSURANCE 452,349 13. INVENTORY PURCHASES 12,316,618 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT 48,462 16. REPAIRS, MAINTENANCE & SUPPLIES 1,519,414 17. ADMINISTRATIVE & SELLING 3,178,324 18. OTHER (attach list) 658,908 4,474 -- 3,406,485 45,331,111 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 658,908 4,474 -- 3,406,485 71,057,466 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- 1,368,231 20. U.S. TRUSTEE FEES -- -- -- -- 40,250 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 658,908 4,474 -- 3,406,485 72,465,946 =============== =============== =============== =============== =============== 22. NET CASH FLOW -- -- -- (208,405) (1,057,901) 23. CASH - END OF MONTH (MOR-2) -- -- -- 8,576 159,499
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 997,101 Royalty Owners Trust Account Emission Credits Account Transfers 50,000 2,900,000 7,584,485 Intercompany Transfers 90,000 ----------- ---------- ---------- --------- --------- TOTAL OTHER RECEIPTS -- -- 1,137,101 2,900,000 7,584,485 =========== ========== ========== ========= ========= 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures 408,428 Revenue & Royalties Interest Payment 97,161 Employee Benefits 1,554,246 212,427 Severance tax Pre-petition checks voided in current period Account Transfers 11,197,868 CIT Revolver Payments 21,577,196 Intercompany Transfers 6,213,918 ----------- ---------- ---------- --------- --------- TOTAL OTHER DISBURSEMENTS -- 21,577,196 19,063,193 -- 620,855 =========== ========== ========== ========= ========= OTHER CASH RECEIPTS AND Chase Chase Wells Fargo Bank One Total DISBURSEMENTS: 6301810036508 6301810028508 4496870106 5561833 Debtor -------------- ------------- ------------- -------------- ------------ ------------- 6. OTHER RECEIPTS: Interest Income -- 401(k) Plan Refund -- Cobra Insurance Payment -- Miscellaneous 150,846 1,147,947 Royalty Owners Trust Account -- Emission Credits -- Account Transfers 658,908 4,474 11,197,868 Intercompany Transfers 90,000 ------- --------- ------------ ---------- ---------- TOTAL OTHER RECEIPTS 658,908 4,474 -- 150,846 12,435,815 ======= ========= ============ ========== ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- Workover Expense -- Capital Expenditures 408,428 Revenue & Royalties -- Interest Payment 97,161 Employee Benefits 658,908 4,474 2,430,056 Severance tax -- Pre-petition checks voided in current period -- Account Transfers 11,197,868 CIT Revolver Payments 3,406,485 24,983,680 Intercompany Transfers 6,213,918 ------- --------- ------------ ---------- ---------- TOTAL OTHER DISBURSEMENTS 658,908 4,474 -- 3,406,485 45,331,111 ======= ========= ============ ========== ==========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF OCTOBER 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 $ -- $ 100 $ 396,740 $ 244,882 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS (126,636) (1,216,418) OTHER 79,119 794,397 (21,261) --------------- --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ 100 $ 475,859 $ 912,644 $ (1,237,679) =============== =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ 1,252,299 $ 326,364 $ 731,872 $ (1,310,115) RECEIPTS 20,324,997 35,600,000 TRANSFERS BETWEEN ACCOUNTS -- (16,274,685) 2,900,000 7,584,485 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS -- (21,577,196) (19,175,820) (2,719,228) (7,512,049) --------------- --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ 100 $ 475,859 $ 912,644 $ (1,237,679) =============== =============== =============== =============== =============== 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 $ -- $ -- $ -- $ 1,000 $ 642,722 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS (1,343,054) OTHER 7,575 859,831 --------------- --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ -- $ -- $ 8,575 $ 159,499 =============== =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ -- $ -- $ 216,980 $ 1,217,400 RECEIPTS 3,198,080 59,123,077 TRANSFERS BETWEEN ACCOUNTS 658,908 4,474 (5,126,818) (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (658,908) (4,474) (3,406,485) (55,054,160) --------------- --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ -- $ -- $ 8,575 $ 159,498 =============== =============== =============== =============== ===============
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 $ 31,250 $-- $-- $-- $ 109,375 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 29,167 -- -- -- 102,084 5. David Elkins/President/Bonus -- 21,875 -- 6. David Elkins/President/Expenses 5,013 35 410 -- -- -- 5,458 7. Richard Crump/Exec VP Opers/Salary 37,500 25,000 25,000 -- -- -- 87,500 8. Richard Crump/Exec VP Opers/Bonus -- 18,750 -- 9. Richard Crump/Exec VP Opers/Expense 2,192 2,939 642 -- -- -- 5,773 10. Paul Vanderhoven/VP Finance & CFO/Salary 25,000 16,667 16,667 -- -- -- 58,334 11. Paul Vanderhoven/VP Finance & CFO/Bonus -- 10,000 -- 12. Paul Vanderhoven/VP Finance & CFO/Expense -- 5,573 974 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 15. Robert Roten/Former Pres & Board Member/BOD fee -- -- 17,550 16. Rolf Towe/Board Member -- -- 10,150 17. Hunter Nelson/Board Member -- -- 13,550 18. Frank Hevrdejs/Board Member -- -- 10,750 -------- -------- ---------- --- --- --- --------- TOTAL INSIDERS (MOR-1) $173,179 $188,763 $ 156,110 $-- $-- $-- $ 385,442 ======== ======== ========== === === === =========
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 $ 15,330 $ -- $ -- $ -- $26,573.32 2. Andrews & Kurth LLP -- -- 324,139 -- -- -- 324,139 3. US Trustee -- -- 40,250 -- -- -- 40,250 4. Skadden, Arps, Slate, Meagher & Flom LLP -- -- 751,593 -- -- -- 751,593 5. Akin Gump Strauss -- -- 277,168 -- -- -- 277,168 6. -- -- -- -- -- -- -- ------------ --------- ---------- --------- --------- --------- --------- TOTAL PROFESSIONALS (MOR-1) $ -- $ 11,243 $1,408,481 $ -- $ -- $ -- $1,419,724 ============ ========= ========== ========= ========= ========= ==========
(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