EX-99.8 10 h93175ex99-8.txt MONTHLY OPERATING RPT. STERLING PULP CHEMICALS,INC EXHIBIT 99.8 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING PULP CHEMICALS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37812-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: NOVEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/01 10/31/01 11/30/01 ------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 4,044,462 $2,936,623 $3,168,738 $2,729,574 $-- $-- INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 503,539 405,982 $ 405,925 $ 438,056 $-- $-- NET INCOME (LOSS) (MOR-6) $ (109,322) 400 $ 736 $ 32,982 $-- $-- PAYMENTS TO INSIDERS (MOR-9) $ -- -- $ -- $ -- $-- $-- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- -- $ -- $ -- $-- $-- TOTAL DISBURSEMENTS (MOR-7) $ 6,975,175 $5,097,690 $6,563,984 $8,489,123 $-- $--
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE ------------------------------ CASUALTY YES ( x) NO ( ) 08-01-02 LIABILITY YES ( x) NO ( ) 07-01-02 VEHICLE YES ( x) NO ( ) 07-01-02 WORKER'S YES ( x) NO ( ) 07-01-02 OTHER YES ( x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe ------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe --------------------------------------------------------------- ------------------------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A Plan of Reorganization is currently being developed. ------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN --------------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO -------------------------------------------------- MOR-1 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 13 12/19/01 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 07/01/02 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 07/01/02 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 07/01/02 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 07/01/02 Included aggregate. (Reinsured through AIG.) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 07/01/02 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 07/01/02 Flat charge - based aggregate. Lore on exposures and 7 Excess Liability $50,000,000 Zurich 1 year 07/01/02 Flat charge 8 Excess Liability $50,000,000 AIG 1 year 07/01/02 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; 1/2 Excess to $1 Million SIR on 1/1/02. 4 Excess Liability Included 5 Excess Liability $295,000 6 Excess Liability $241,886 7 Excess Liability $109,210 8 Excess Liability $80,938
Page 4 of 13 12/19/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 9 Excess Liability $50,000,000 Starr Excess 1 year 07/01/02 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire 1 year 07/01/02 Based on volume Operators Liability and Ded. $25,000 per occurrence Ins. Co. thru Marsh throughput and no. Charterer's Legal $100,000 pollution per occurrence. London chartered vessels. Liability 11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 07/01/02 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 07/01/02 Flat Brockbank & N.Y. Marine Gen. Ins. 13 Property Damage, $ Total insured values combined all- Munich Re: et. al 1 year 08/01/02 Property Values.-PD Business Interruption and risk. Sublimits: Flood - $100 mil., Income values - BI Boiler & Machinery Earthquake - $100 mil., $10 mil PML, fire protection extra expense. Ded.: Petrochem available; many other $1,000,000 PD, 10 day - BI. Pulp & factors. Fibers - $1 mil. PD/BI. 14 Directors & $15,000,000 each loss and each National Union 1 year 08/21/02 Various Officers Liability policy year. Ded. $1,000,000 Corp. Indemnity 15 Excess Directors & $10,000,000 excess of Primary Hartford 1 year 08/21/02 Various Officers Liability D&O 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 08/21/02 Various Liability Co.
NO. TYPE OF INSURANCE ANNUAL PREMIUM --- ----------------- -------------- 9 Excess Liability $62,500 10 Marine Terminal $27,000 (AFCO) Min. premium & Operators Liability and deposit Charterer's Legal Liability 11 Excess Marine Liability $57,375 12 Excess Marine Liability $21,250 13 Property Damage, Annual - Financed through AFCO. Business Interruption and $4.0M (est.) Boiler & Machinery 14 Directors & $316,000 (15 mos.) Officers Liability 15 Excess Directors & $223,700 (15 mos.) Officers Liability 16 Directors & Officers $115,000 (15 mos.) Liability
Page 5 of 13 12/19/01
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/01/02 Various Depositor's Forgery Agreement. Ded. $50,000. Chubb 18 Hull & Machinery and Barge Hull Value Zurich-Americano 1 year 07/01/02 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 07/01/02 Hull gross registered Section B - $5,000,000 Insurance tonnage CERCLA - $5,000,000 Syndicate 20 Marine and Railroad $12,000,000 any one vessel Mutual Marine 1 year Continuing Declared shipment Cargo $1,000,000 any one barge values $1,000,000 any one rail ship. $100,000 any one truck 21 Duty Drawback Bond $1,000,000 Washington 1 year Continuing Limit International 22 Fiduciary $10,000,000 National Union 1 year 08/21/02 Various Ded. $250,000 per occurrence 23 Environmental $4,000,000 per loss ECS 1 year 01/15/02 Loss Potential Impairment Liability $8,000,000 aggregate (Indian Harbor) (Petrochem & Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs
NO. TYPE OF INSURANCE ANNUAL PREMIUM --- ----------------- -------------- 17 Employee Dishonesty & $14,450 Depositor's Forgery 18 Hull & Machinery and $29,378 (AFCO) Protection & Indemnity 19 Pollution Insurance $4,258 (AFCO) 20 Marine and Railroad $40,000 Annual Approx. Cargo 21 Duty Drawback Bond $2,875 22 Fiduciary $22,000 - Financed through Imperial. 23 Environmental $106,200 - Financed through AFCO. Impairment Liability (Petrochem & Fibers) 24 Closure/Post Closure $40,610 Bonds - Petrochem
ANNUAL TOTAL: $3,459,260 * *Total fluctuates due to cargo premiums dependence upon volume of CIF export shipments and annual audits of Worker's Compensation and Marine Terminal policies. STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS) CONSOLIDATING BALANCE SHEET FOR THE PERIOD ENDED NOVEMBER 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 $ 723 $ 528 $ - $ 214 Trade accounts receivable, net - 44,237 61 3,078 Other Receivables - 1,930 - - Due from affiliates 652 20,751 12,018 4,040 Inventories - 28,780 - 8,864 Prepaid expenses 29 4,106 - - Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,404 100,332 12,079 16,196 Property, plant and equipment, net - 124,854 3,200 6,215 Deferred income taxes - - - - Investments-Third Party - 1,500 5,106 - Investments in Subs 35,060 94,735 - - Other assets 7,337 23,848 - 1,380 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 43,801 $ 345,269 $ 20,385 $ 23,791 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 63 115,891 1,175 5,766 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 24,750 - 6,235 Unsecured debt 193,006 277,725 1,110 71,225 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - (458) - 458 Redeemable preferred stock 27,861 (16,017) - 16,012 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (233,134) - 9,339 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,497) (37,507) 2,766 (4,571) Pension adjustment - (135) - - Accumulated translation adj. - - - - Deferred compensation - (3) - - ------------------------------------------------------------------------------------ (177,129) (483,207) 18,100 (133,161) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (177,129) (485,744) 18,100 (133,161) TOTAL LIABILITIES AND EQUITY $ 43,801 $ 345,269 $ 20,385 $ 23,791 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 9 $ - $ - Trade accounts receivable, net - 2,454 902 4,668 Other Receivables - 4,367 - - Due from affiliates 2,801 49,472 595 4,184 Inventories - - 241 1,610 Prepaid expenses (283) - - - Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,518 56,302 1,738 10,462 Property, plant and equipment, net - - - 43,632 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,766 1,846 - Other assets 2,708 6,309 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,226 $ 358,377 $ 3,584 $ 54,094 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 26 19,796 669 756 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 398 7,317 - - Unsecured debt 840 265,049 170 62,478 Other / Intercompany - 5,519 - 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 1,845 Retained earnings-Filing Date 779 (90,594) (877) (10,909) Retained earnings-Post Filing Date (469) 742 (1,816) (76) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 310 (6,456) 2,745 (9,140) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 310 (6,456) 2,745 (9,140) TOTAL LIABILITIES AND EQUITY $ 5,226 $ 358,377 $ 3,584 $ 54,094 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,474 Trade accounts receivable, net - 55,400 Other Receivables - 6,297 Due from affiliates (88,412) 6,101 Inventories - 39,495 Prepaid expenses - 3,852 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (88,412) 112,619 Property, plant and equipment, net - 177,901 Deferred income taxes - - Investments-Third Party - 6,606 Investments in Subs (381,952) 45,455 Other assets (1) 41,581 -------------------------------- TOTAL ASSETS $(470,365) $ 384,162 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (29,937) 114,205 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (6,633) 32,067 Unsecured debt (131,371) 740,232 Other / Intercompany (201,020) 5,519 Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,856 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,530) (541,249) Retained earnings-Filing Date - (244,777) Retained earnings-Post Filing Date - (42,428) Pension adjustment - (135) Accumulated translation adj. - - Deferred compensation - (3) -------------------------------- (40,531) (828,469) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,531) (831,006) TOTAL LIABILITIES AND EQUITY $(470,365) $ 384,162 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
---------------------------------------------------------------------------------------------- 8/31/2001(1) Sep-2001 10/31/01 11/30/01 MONTH MONTH ---------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 1,029 $ 2,220 $ 2,039 $ 308 $ -- ROYALTY AND REVENUE PAYABLE -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- TAX PAYABLE: -- -- Federal Payroll Taxes -- -- -- -- -- State Payroll & Sales -- -- -- -- -- Ad Valorem Taxes -- -- -- -- -- Other Taxes 40 50 76 102 -- TOTAL TAXES PAYABLE $ 40 $ 50 $ 76 $ 102 $ -- $ -- SECURED DEBT POST-PETITION -- -- -- -- -- ACCRUED INTEREST PAYABLE -- -- -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- -- -- OTHER ACCRUED LIABILITIES: 1208 1. General and Administrative Costs 343 447 323 346 -- 2. Lease Operating Expenses/Capital -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 2,620 $ 2,716 $ 2,438 $ 756 $ -- $ -- ====================================================================================================================================
*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 11/30/01 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $114,205 $ 113,972 $ -- $ (2) $ 235 $ -- 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $114,205 $ 113,972 $ -- $ (2) $ 235 $ -- ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 44,536 $ 44,536 $ -- $ -- $ -- $ -- 31-60 4,087 4,087 -- -- -- -- 61-90 4,312 4,312 -- -- -- -- 91 + 12,505 12,505 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 65,440 $ 65,440 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 NOVEMBER 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) $ -- $ 21,898,981 $ 179,733 $ 1,569,117 TOTAL COST OF REVENUES -- 23,037,429 179,733 1,720,230 GROSS PROFIT $ -- $ (1,138,448) $ -- $ (151,113) =================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 1,112,322 $ -- $ 126,530 Insiders Compensation -- 106,743 -- -- Professional Fees -- 1,495,045 -- -- Other (Earnings in Joint Venture) -- 550,328 (550,328) -- TOTAL OPERATING EXPENSE $ -- $ 3,264,438 $ (550,328) $ 126,530 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ (4,402,886) $ 550,328 $ (277,643) INTEREST EXPENSE (includes amort of debt fees) (9,797) 2,239,058 -- 614,434 DEPRECIATION -- 1,901,893 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (9,797) $ 4,140,951 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ 9,797 $ (8,543,837) $ 550,328 $ (939,694) INCOME TAXES -- -- 28,869 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ 9,797 $ (8,543,837) $ 521,459 $ (939,694) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ (83,333) $ 1,116,391 $ 285,909 TOTAL COST OF REVENUES -- (83,333) 68,790 463,406 GROSS PROFIT $ 83,333 $ -- $ 1,047,601 $ (177,497) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 1,533 $ 228,534 $ (103,333) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 1,533 $ 228,534 $ (103,333) ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 81,800 $ 819,067 $ (74,164) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,588 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,383 $ -- ==================================================================================================================================== NET INCOME BEFORE TAXES $ 21,135 $ -- $ 154,684 $ (74,164) INCOME TAXES -- -- -- -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ 21,135 $ -- $ 154,684 $ (74,164) ==================================================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,729,574 $ (83,333) $ 27,779,705 TOTAL COST OF REVENUES 1,683,022 (83,333) 27,069,277 GROSS PROFIT $ 1,046,552 $ -- $ 710,428 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,496 $ (540,833) 1,433,249 Insiders Compensation -- -- 106,743 Professional Fees -- -- 1,495,045 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 608,496 $ (540,833) $ 3,035,037 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 438,056 $ 540,833 (2,324,609) INTEREST EXPENSE (includes amort of debt fees) -- 540,833 3,600,781 DEPRECIATION 405,074 -- 2,863,379 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 405,074 $ 540,833 $ 6,464,160 ================================================================================================================= NET INCOME BEFORE TAXES $ 32,982 $ -- $ (8,788,769) INCOME TAXES -- -- 28,869 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 32,982 $ -- $ (8,817,638) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
========================================================================================================================= CASH RECEIPTS AND Month Month Month Month Month Month DISBURSEMENTS 8/31/2001(1) 9/30/01 10/31/01 11/30/01 ------------------------------------------------------------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ 308,953 $ (78,711) $ 170,374 $ 238,608 $ -- $ -- ------------ ----------- ---------- ---------- ----- ------ RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- $ -- $ -- ------------ ----------- ---------- ---------- ----- ------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 4,593,479 2,187,309 3,520,713 2,652,571 -- -- ------------ ----------- ---------- ---------- ----- ------ 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----- ------ 5. SALE OF ASSETS -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----- ------ 6. OTHER (attach list) 1,994,032 3,159,466 3,111,505 5,584,297 -- -- ------------ ----------- ---------- ---------- ----- ------ TOTAL RECEIPTS $ 6,587,511 $ 5,346,775 $6,632,218 $8,236,868 $ -- $ -- ------------ ----------- ---------- ---------- ----- ------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A ------------ ----------- ---------- ---------- ----- ------ DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- $ -- $ -- $ -- ------------ ----------- ---------- ---------- ----- ------ 8. PAYROLL TAXES PAID -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----- ------ 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----- ------ 10. SECURED/RENTAL/LEASES 4,002 2,538 3,198 4,558 -- -- ------------ ----------- ---------- ---------- ----- ------ 11. UTILITIES 548,000 1,077,734 2,383,745 1,703,174 -- -- ------------ ----------- ---------- ---------- ----- ------ 12. INSURANCE -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----- ------ 13. INVENTORY PURCHASES 188,215 251,647 291,355 318,099 -- -- ------------ ----------- ---------- ---------- ----- ------ 14. VEHICLE EXPENSES -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----- ------ 15. TRAVEL & ENTERTAINMENT 1,606 487 8,200 3,731 -- -- ------------ ----------- ---------- ---------- ----- ------ 16. REPAIRS, MAINTENANCE & SUPPLIES 135,944 71,367 82,154 141,233 -- -- ------------ ----------- ---------- ---------- ----- ------ 17. ADMINISTRATIVE & SELLING 254,459 228,571 202,541 238,024 -- -- ------------ ----------- ---------- ---------- ----- ------ 18. OTHER (attach list) 5,842,948 3,465,346 3,592,791 6,080,303 -- -- ------------ ----------- ---------- ---------- ----- ------ TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,975,175 $ 5,097,690 $6,563,984 $8,489,123 $ -- $ -- ------------ ----------- ---------- ---------- ----- ------ 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- $ -- ------------ ----------- ---------- ---------- ----- ------ 20. U.S. TRUSTEE FEES -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----- ------ 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- ------------ ----------- ---------- ---------- ----- ------ TOTAL DISBURSEMENTS $ 6,975,175 $ 5,097,690 $6,563,984 $8,489,123 $ -- $ -- ------------ ----------- ---------- ---------- ----- ------ 22. NET CASH FLOW $ (387,664) $ 249,085 $ 68,234 $ (252,254) $ -- $ -- ------------ ----------- ---------- ---------- ----- ------ 23. CASH - END OF MONTH (MOR-2) $ (78,711) $ 170,374 $ 238,608 $ (13,646) $ -- $ -- ============ =========== ========== ========== ===== ====== =================================================================== CASH RECEIPTS AND FILING TO DISBURSEMENTS DATE ------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ 308,953 ----------- RECEIPTS: 2. CASH SALES $ -- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 12,954,072 ----------- 4. LOANS & ADVANCES (attach list) -- ----------- 5. SALE OF ASSETS -- ----------- 6. OTHER (attach list) 13,849,300 ----------- TOTAL RECEIPTS $26,803,372 ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A ----------- DISBURSEMENTS: 7. NET PAYROLL $ -- ----------- 8. PAYROLL TAXES PAID -- ----------- 9. SALES, USE & OTHER TAXES PAID -- ----------- 10. SECURED/RENTAL/LEASES 14,296 ----------- 11. UTILITIES 5,712,653 ----------- 12. INSURANCE -- ----------- 13. INVENTORY PURCHASES 1,049,315 ----------- 14. VEHICLE EXPENSES -- ----------- 15. TRAVEL & ENTERTAINMENT 14,025 ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 430,699 ----------- 17. ADMINISTRATIVE & SELLING 923,595 ----------- 18. OTHER (attach list) 18,981,388 ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $27,125,971 ----------- 19. PROFESSIONAL FEES $ -- ----------- 20. U.S. TRUSTEE FEES -- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- ----------- TOTAL DISBURSEMENTS $27,125,971 ----------- 22. NET CASH FLOW $ (322,599) ----------- 23. CASH - END OF MONTH (MOR-2) $ (13,646) ===========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01 MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
=================================================================================================================================== OTHER CASH RECEIPTS AND 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 FILING TO DISBURSEMENTS: DATE ----------------------------------------------------------------------------------------------------------------------------------- 6.OTHER RECEIPTS: Interest Income $ -- $ -- $ -- $ -- $ -- $ -- $ -- ---------- ---------- ---------- ---------- ---- ---- ----------- 401(k) Plan Refund -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---- ---- ----------- Cobra Insurance Payment -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---- ---- ----------- Miscellaneous -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---- ---- ----------- Emission Credits -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---- ---- ----------- Trade AR receipts of an affiliated co. SPC LTD 448,032 120,020 505 40,880 -- -- 609,437 ---------- ---------- ---------- ---------- ---- ---- ----------- Cash advance from Sterling Chemicals 1,546,000 1,750,000 3,111,000 2,347,000 -- -- 8,754,000 cash receipts re Inter company AR -- 1,289,446 3,196,417 ---------- ---------- ---------- ---------- ---- ---- ----------- TOTAL OTHER RECEIPTS $1,994,032 $3,159,466 $3,111,505 $5,584,297 $ -- $ -- $ 9,363,437 ---------- ---------- ---------- ---------- ---- ---- ----------- 18.OTHER DISBURSEMENTS: Capital Expenditures $ -- $ 73,370 $ 81,005 $ 39,534 $ -- $ -- $193,909.40 ---------- ---------- ---------- ---------- ---- ---- ----------- Interest Payment -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---- ---- ----------- Restricted Cash - Bond Funding -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---- ---- ----------- Pre-petition checks voided in current period -- -- -- -- -- -- -- ---------- ---------- ---------- ---------- ---- ---- ----------- Trade AR receipts of an affiliated co. SPC LTD 596,035 -- -- -- -- -- 596,035 ---------- ---------- ---------- ---------- ---- ---- ----------- CIT revolver cash sweep 5,246,912 2,102,530 3,511,786 2,844,352 -- -- -- ---------- ---------- ---------- ---------- ---- ---- ----------- Return of investment to SPCUS 81,069 -- 1,272,914 -- -- 1,353,983 ---------- ---------- ---------- ---------- ---- ---- ----------- cash disbursements re Inter company AP 1,208,377 1,923,503 ---------- ---------- ---------- ---------- ---- ---- ----------- TOTAL OTHER DISBURSEMENTS $5,842,948 $3,465,346 $3,592,791 $6,080,303 $ -- $ -- $ 2,143,928 ========== ========== ========== ========== ==== ==== ===========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01 MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11 CASH ACCOUNT RECONCILIATION MONTH OF NOVEMBER 30, 2001 --------------------------------- BANK NAME Bank One Chase Manhattan Chase Manhattan First State Bank ---------------------------------------------------------------------------------------------------------------------------------- ACCOUNT NUMBER 5589665 001-00546119 001-03317146 Consolidated 011-077-220-1 ---------------------------------------------------------------------------------------------------------------------------------- ACCOUNT TYPE Lock Box General Checking Checking TOTAL ---------------------------------------------------------------------------------------------------------------------------------- BANK BALANCE $ 105,242 $ 100 $ 2,319 $ 107,661 $ 29,031 $ 136,692 ---------------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT 17,213 $ 17,213 17,213 ---------------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS (158,408) (158,408) (9,143) (167,551) ---------------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ 105,242 $ 100 $ (138,876) $ (33,534) $ 19,888 $ - $ - $ (13,646) ---------------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOKS $ 256,145 $ 100 $ (56,735) $ 199,510 $ 39,099 238,608 ---------------------------------------------------------------------------------------------------------------------------------- RECEIPTS 2,156,593 536,856 5,543,418 8,236,868 - 8,236,868 ---------------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS - - - - ---------------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - ---------------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - ---------------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS (2,307,496) (536,856) (5,625,559) (8,469,911) (19,211) (8,489,122) ---------------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ 105,242 $ 100 $ (138,876) $ (33,533) $ 19,888 $ - $ - $ (13,646) ==================================================================================================================================
MOR-8 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
================================================================================================================================= 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE 1. $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 7. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 8. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 9. -- -- -- -- -- -- -- --- --- --- --- --- --- --- TOTAL INSIDERS (MOR-1) $-- $-- $-- $-- $-- $-- $-- === === === === === === ===
================================================================================================================== 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO PROFESSIONALS DATE NAME/ORDER DATE 1. $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- --- --- --- --- --- --- --- TOTAL PROFESSIONALS (MOR-1) $-- $-- $-- $-- $-- $-- $-- === === === === === === ===
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (I) DIRECTORS, (II) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (III) AFFILIATES ; AND (IV) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9