EX-99.4 6 h93662ex99-4.txt MONTHLY OPERATING RPT.-STERLING FIBERS, INC. EXHIBIT 99.4 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING FIBERS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37808-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: DECEMBER YEAR: 2001
MONTH 7/16/01-8/31/01 9/30/01 10/31/01 11/30/01 12/31/01 ----------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 4,472,168 $ 1,311,018 $1,891,936 $1,569,117 $1,466,000 $ -- INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (209,403) $ (228,529) $ (309,258) $ (277,643) $ (13,259) $ -- NET INCOME (LOSS) (MOR-6) $ (1,202,563) $ (891,256) $ (971,769) $ (939,694) $ (675,264) $ -- PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7) $ 6,063,610 $ 4,412,856 $3,673,189 $3,090,908 $2,756,941 $ --
***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 FIBERS, INC. CASE NUMBER: 01-37808-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 15 1/18/02 SUMMARY OF COVERAGES FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE --- ----------------- -------------- ------------- ---- ------ 1 Workers Compensation Statutory - $1,000,000 American Guar. 1 year 7/1/2002 Employers Liability. Ded. Zurich US $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/2002 Ded. $25,000 per occurrence. Zurich Amer. 3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/2002 Excess to $1 Million SIR aggregate. Excess $1,000,000 GL $2,000,000 AL. 4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. (Reinsured 1 year 7/1/2002 aggregate. through AIG.) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/2002 aggregate. 6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 7/1/2002 aggregate. Lore 7 Excess Liability $50,000,000 Zurich 1 year 7/1/2002 8 Excess Liability $50,000,000 AIG 1 year 7/1/2002 NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM --- ----------------- ------------- -------------- 1 Workers Compensation Total annual remuneration $195,653 - Audit at (AFCO) expiration. Plus all losses within deductible. 2 Automobile Liability Number of vehicles owned $92,955 (AFCO) and leased 3 Excess Liability Annual revenues and $451,090 Annual - Half on Excess to $1 Million SIR remuneration 7/1/01; 1/2 on 1/1/02. 4 Excess Liability Included Included 5 Excess Liability Flat charge - based on $295,000 exposures and risk potential 6 Excess Liability Flat charge - based on $241,886 exposures and 7 Excess Liability Flat charge $109,210 8 Excess Liability Flat Charge $80,938
Page 4 of 15 1/18/02
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. Co. 1 year 7/1/02 Liability and Charterer's Ded. $25,000 per occurrence thru Marsh London Legal Liability $100,000 pollution per occurrence. 11 Excess Marine Liability $24,000,000 excess of MTO, XL Specialty 1 year 7/1/02 CLL, P&L Brockbank & Liberty Und. 12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/02 Brockbank & N.Y. Marine Gen. Ins. 13 Property Damage, Business $ Total insured values Munich Re: et. al. 1 year 8/1/02 Interruption and Boiler & combined all-risk. Sublimits: Machinery Flood - $100 mil., Earthquake - $100 mil., $10 mil extra expense. Ded.: Petrochem $1,000,000 PD, 10 day - BI. Pulp & Fibers - $1 mil. PD/BI. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/02 Liability policy year. Ded. $1,000,000 Indemnity Corp. Reimb. 15 Excess Directors & $10,000,000 excess of Primary Hartford 1 year 8/21/02 Officers Liability D&O 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 Interruption and Boiler & PD Income values - AFCO. $4.0M (est.) Machinery BI PML, fire protection available; many other factors. 14 Directors & Officers Various $316,000 (15 mos.) Liability 15 Excess Directors & Various $223,700 (15 mos.) Officers Liability 16 Directors & Officers Various $115,000 (15 mos.) Liability
Page 5 of 15 1/18/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE --- ----------------- -------------- ------------- ---- ------ 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/02 Depositor's Forgery Agreement. Ded. $50,000. Chubb 18 Hull & Machinery and Barge Hull Value Zurich-American 1 year 7/1/02 Protection & Indemnity (M-25 = $1,500,000) Insurance Co. Ded. $5,000 per loss. $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/02 Section B - $5,000,000 Insurance CERCLA - $5,000,000 Syndicate 20 Marine and Railroad Cargo $12,000,000 any one vessel Mutual Marine 1 year Continuing $1,000,000 any one barge $1,000,000 any one rail ship. $100,000 any one truck 21 Duty Drawback Bond $1,000,000 Washington 1 year Continuing International 22 Fiduciary $10,000,000 National Union 1 year 8/21/02 Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss ECS 1 year 1/15/02 Liability (Petrochem & $8,000,000 aggregate (Indian Harbor) Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Bonds - Petrochem Indemnity NO. TYPE OF INSURANCE EXPOSURE BASE ANNUAL PREMIUM --- ----------------- ------------- -------------- 17 Employee Dishonesty & Various $14,450 Depositor's Forgery 18 Hull & Machinery and Hull & Machinery $29,378 (AFCO) Protection & Indemnity values 19 Pollution Insurance Hull gross registered $4,258 (AFCO) tonnage 20 Marine and Railroad Cargo Declared shipment $40,000 Annual Approx. values 21 Duty Drawback Bond Limit $2,875 22 Fiduciary Various $22,000 - Financed through Imperial. 23 Environmental Impairment Loss Potential $106,200 - Financed through AFCO. Liability (Petrochem & Fibers) 24 Closure/Post Closure Estimated $40,610 Bonds - Petrochem Closure/Post Closure Costs ANNUAL TOTAL: $3,459,260 *
*Total fluctuates due to cargo premiums dependence upon volume of CIF export shipments and annual audits of Worker's Compensation and Marine Terminal policies. STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS) CONSOLIDATING BALANCE SHEET FOR THE PERIOD ENDED DECEMBER 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 $ 170 $ 623 $ - $ 412 Trade accounts receivable, net - 46,523 48 2,692 Other Receivables - 1,338 - 3,694 Due from affiliates 1,205 21,376 12,707 -- Inventories - 32,612 - 8,645 Prepaid expenses 33 3,242 - 85 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,408 105,714 12,755 15,528 Property, plant and equipment, net - 123,768 3,137 6,168 Deferred income taxes - - - - Investments-Third Party - 1,500 5,700 - Investments in Subs 35,060 94,735 - - Other assets 865 35,101 - 1,354 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,333 $ 360,818 $ 21,592 $ 23,050 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 64 117,036 1,719 2,775 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 27,178 - 6,825 Unsecured debt 186,538 298,839 1,110 70,986 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - (458) - 458 Redeemable preferred stock 28,155 (16,141) - 16,133 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (1,792) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (41,380) 15,333 (137,929) Retained earnings-Post Filing Date (1,497) (3,398) 3,429 (1,328) Pension adjustment - (135) - - Accumulated translation adj. - - - - Deferred compensation - (2) - - ------------------------------------------------------------------------------------ (177,424) (492,221) 18,100 (131,383) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (177,424) (494,758) 18,763 (131,383) TOTAL LIABILITIES AND EQUITY $ 37,333 $ 360,818 $ 21,592 $ 23,050 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 19 $ - $ 147 Trade accounts receivable, net - 3,141 962 5,510 Other Receivables - 4,367 - - Due from affiliates 2,884 50,168 492 4,004 Inventories - - 300 1,626 Prepaid expenses (283) - - 492 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,601 57,695 1,754 11,779 Property, plant and equipment, net - - - 43,307 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,659 1,608 - Other assets 2,686 5,796 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,287 $ 359,150 $ 3,362 $ 55,086 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 42 19,947 632 1,704 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 436 8,010 - - Unsecured debt 840 265,049 170 62,478 Other / Intercompany - 5,435 - 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 3,867 1,608 Retained earnings-Filing Date 779 (90,594) (877) (10,909) Retained earnings-Post Filing Date (462) 755 (430) 205 Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 317 (6,443) 2,560 (9,096) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 317 (6,443) 2,560 (9,096) TOTAL LIABILITIES AND EQUITY $ 5,287 $ 359,150 $ 3,362 $ 55,086 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,371 Trade accounts receivable, net - 58,876 Other Receivables - 9,399 Due from affiliates (93,878) (1,042) Inventories - 43,183 Prepaid expenses - 3,569 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (93,878) 115,356 Property, plant and equipment, net - 176,380 Deferred income taxes - - Investments-Third Party - 7,200 Investments in Subs (381,607) 45,455 Other assets (1) 45,801 -------------------------------- TOTAL ASSETS $(475,486) $ 390,192 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (34,086) 109,833 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (7,261) 35,188 Unsecured debt (132,060) 753,950 Other / Intercompany (201,020) 5,435 Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 28,147 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,185) (546,056) Retained earnings-Filing Date - (244,777) Retained earnings-Post Filing Date - (41,003) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (2) -------------------------------- (40,186) (835,113) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,186) (837,650) TOTAL LIABILITIES AND EQUITY $(475,486) $ 390,192 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
---------------------------------------------------------------------------------------------- 8/31/2001(1) 9/30/01 10/31/01 11/30/01 12/31/01 MONTH ---------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 3,026 $ 3,514 $ 5,878 $ 5,656 $ 2,614 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- TAX PAYABLE: -- -- Federal Payroll Taxes 5 5 -- -- 26 State Payroll & Sales 13 1 (1) (2) (3) Ad Valorem Taxes -- -- -- -- -- Other Taxes 389 62 87 112 137 TOTAL TAXES PAYABLE $ 407 $ 68 $ 86 $ 110 $ 161 $ -- SECURED DEBT POST-PETITION -- -- -- -- -- ACCRUED INTEREST PAYABLE -- -- -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- -- -- -- -- 2. Lease Operating Expenses/Capital -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,433 $ 3,582 $ 5,964 $ 5,766 $ 2,775 $ -- ====================================================================================================================================
*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 12/31/01 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $ 23,354 $ 23,186 $ 26 $ (3) $ 145 $ -- 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $ 23,354 $ 23,186 $ 26 $ (3) $ 145 $ -- ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 46,115 $ 46,115 $ -- $ -- $ -- $ -- 31-60 498 498 -- -- -- -- 61-90 4,527 4,527 -- -- -- -- 91 + 19,372 19,372 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 70,512 $ 70,512 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 DECEMBER 31, 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) $ -- $ 18,571,799 $ 179,201 $ 1,466,000 TOTAL COST OF REVENUES -- 16,717,896 179,201 1,369,762 GROSS PROFIT $ -- $ 1,853,903 $ -- $ 96,238 =================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 967 $ 1,546,382 $ -- $ 109,497 Insiders Compensation -- 204,995 -- -- Professional Fees -- 1,092,450 -- -- Other (Earnings in Joint Venture) -- 593,727 (593,727) -- TOTAL OPERATING EXPENSE $ 967 $ 3,437,554 $ (593,727) $ 109,497 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (967) $ (1,583,651) $ 593,727 $ (13,259) INTEREST EXPENSE (includes amort of debt fees) 127,747 2,182,153 -- 614,434 DEPRECIATION -- 1,882,903 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 127,747 $ 4,065,056 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (128,714) $ (5,648,707) $ 593,727 $ (675,264) INCOME TAXES -- -- 31,180 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (128,714) $ (5,648,707) $ 562,547 $ (675,264) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,156,830 $ 288,348 TOTAL COST OF REVENUES -- 54,619 439,474 GROSS PROFIT $ 83,333 $ 1,102,211 $ (151,126) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,503 $ 440,050 $ (73,637) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,503 $ 440,050 $ (73,637) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 66,830 $ 662,161 $ (77,489) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,581 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,376 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,165 $ 15,785 $ (77,489) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,165 $ 15,785 $ (77,489) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,383,414 $ (83,333) $ 25,045,592 TOTAL COST OF REVENUES 2,069,558 (83,333) 20,747,177 GROSS PROFIT $ 1,313,856 $ -- $ 4,298,415 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 627,517 $ (558,861) 2,108,418 Insiders Compensation -- -- 204,995 Professional Fees -- -- 1,092,450 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 627,517 $ (558,861) $ 3,405,863 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 686,339 $ 558,861 892,552 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,681,441 DEPRECIATION 405,059 -- 2,844,328 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 405,059 $ 558,861 $ 6,525,769 ================================================================================================================= NET INCOME BEFORE TAXES $ 281,280 $ -- $ (5,633,217) INCOME TAXES -- -- 31,180 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 281,280 $ -- $ (5,664,397) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
CASH RECEIPTS AND DISBURSEMENTS 8/31/2001(1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 ----------------- ------------ ------------ ---------- ---------- ---------- ------- 1. CASH-BEGINNING OF MONTH $ 714,483 $ 361,051 $ 295,511 $ 297,869 $ 213,923 $ -- ------------ ------------ ---------- ----------- ---------- ------- RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 4,481,633 2,962,072 1,914,342 1,695,639 $1,489,298 4. LOANS & ADVANCES (attach list) -- -- -- -- 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 1,228,545 1,385,244 1,761,204 1,311,323 1,466,164 TOTAL RECEIPTS $ 5,710,178 $ 4,347,316 $3,675,546 $3,006,962 $2,955,462 $ -- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 319,807 $ 156,419 $ 165,492 $ 297,757 $ 146,889 $ -- 8. PAYROLL TAXES PAID 142,508 64,049 68,457 58,459 89,708 9. SALES, USE & OTHER TAXES PAID -- -- 2,686 2,786 21 10. SECURED/RENTAL/LEASES -- 4,000 -- 486 -- 11. UTILITIES 122,540 -- 236,879 279,750 260,897 12. INSURANCE -- 280,148 -- -- -- 13. INVENTORY PURCHASES 47,098 162,287 257,863 83,785 146,466 14. VEHICLE EXPENSES -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT 208 14,891 9,766 10,869 861 16. REPAIRS, MAINTENANCE & SUPPLIES 26,090 58,632 78,051 78,837 49,567 17. ADMINISTRATIVE & SELLING -- 5,339 -- 2,747 1,950 18. OTHER (attach list) 5,405,358 3,667,091 2,853,995 2,275,432 2,060,583 TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,063,610 $ 4,412,856 $3,673,189 $3,090,908 $2,756,941 $ -- 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- TOTAL DISBURSEMENTS $ 6,063,610 $ 4,412,856 $3,673,189 $3,090,908 $2,756,941 $ -- 22. NET CASH FLOW $ (353,432) $ (65,540) $ 2,357 $ (83,946) $ 198,521 $ -- 23. CASH - END OF MONTH (MOR-2) $ 361,051 $ 295,511 $ 297,869 $ 213,923 $ 412,444 $ -- CASH RECEIPTS AND FILING TO DISBURSEMENTS DATE ----------------- ------------ 1. CASH-BEGINNING OF MONTH $ 714,483 ------------ RECEIPTS: 2. CASH SALES $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 12,542,983 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 7,152,481 TOTAL RECEIPTS $ 19,695,464 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A DISBURSEMENTS: 7. NET PAYROLL $ 1,086,363 8. PAYROLL TAXES PAID 423,182 9. SALES, USE & OTHER TAXES PAID 5,493 10. SECURED/RENTAL/LEASES 4,486 11. UTILITIES 900,066 12. INSURANCE 280,148 13. INVENTORY PURCHASES 697,498 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT 36,596 16. REPAIRS, MAINTENANCE & SUPPLIES 291,177 17. ADMINISTRATIVE & SELLING 10,036 18. OTHER (attach list) 16,262,459 TOTAL DISBURSEMENTS FROM OPERATIONS $ 19,997,504 19. PROFESSIONAL FEES $ -- 20. U.S. TRUSTEE FEES -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- TOTAL DISBURSEMENTS $ 19,997,504 22. NET CASH FLOW $ (302,039) 23. CASH - END OF MONTH (MOR-2) $ 412,444
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01 MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
OTHER CASH RECEIPTS AND 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 DISBURSEMENTS: ----------------------- ------------- ------------- ---------- ------ ------ ------ 6. OTHER RECEIPTS: Interest Income $ 545 $ -- $ -- -- 401(k) Plan Refund -- -- -- -- Cobra Insurance Payment 6,083 3,806 7,928 5,259 3,764 Miscellaneous 80,917 42,438 1,276 12,065 -- Royalty Owners Trust Account -- -- -- -- Emission Credits -- -- -- -- Intercompany Transfers 871,000 1,139,000 1,512,000 1,294,000 1,462,400 Account Transfers 270,000 200,000 240,000 -- TOTAL OTHER RECEIPTS $ 1,228,545 $ 1,385,244 $1,761,204 $1,311,323 $1,466,164 $ -- 18. OTHER DISBURSEMENTS: Lease Operating Expense $ -- $ -- $ -- -- Workover Expense -- -- -- -- Capital Expenditures 13,000 4,812 -- -- Revenue & Royalties -- -- -- 10,150 -- Interest Payment -- -- -- -- Employee Benefits 55,027 27,405 27,144 13,438 26,485 Severance tax -- -- -- -- Pre-petition checks voided in current period (3,215) (2,000) -- -- Insiders -- -- -- -- Restricted Cash Transactions -- -- -- -- Contract Services 473,664 431,305 468,686 481,869 367,969 Licenses / Fees / Permits 1,439 -- 19,878 89 -- Freight 87,551 101,650 87,536 100,851 59,460 Account Transfers 270,000 200,000 240,000 -- Outstanding checks to Balance to G/L (183,381) (150,611) 72,328 (59,844) 168,807 CIT Revolver Payments 4,691,274 3,054,530 1,938,423 1,728,878 1,437,861 TOTAL OTHER DISBURSEMENTS $ 5,405,358 $ 3,667,091 $2,853,995 $2,275,432 $2,060,583 $ -- OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: DATE ----------------------- ----------- 6. OTHER RECEIPTS: Interest Income $ 545 401(k) Plan Refund -- Cobra Insurance Payment 26,840 Miscellaneous 136,697 Royalty Owners Trust Account -- Emission Credits -- Intercompany Transfers 6,278,400 Account Transfers 710,000 TOTAL OTHER RECEIPTS $ 7,152,481 18. OTHER DISBURSEMENTS: Lease Operating Expense $ -- Workover Expense -- Capital Expenditures 17,812 Revenue & Royalties 10,150 Interest Payment -- Employee Benefits 149,499 Severance tax -- Pre-petition checks voided in current period (5,215) Insiders -- Restricted Cash Transactions -- Contract Services 2,223,494 Licenses / Fees / Permits 21,406 Freight 437,049 Account Transfers 710,000 Outstanding checks to Balance to G/L (152,701) CIT Revolver Payments 12,850,966 TOTAL OTHER DISBURSEMENTS $16,262,459
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01 MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 DECEMBER 2001
CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS 00100547117 00103316965 103405768 630181003508 ----------------- ----------- ----------- ----------- ------------ 1. CASH-BEGINNING OF MONTH $ 3,016 $ 864 $ 3,744 $ 0 RECEIPTS: 2. CASH SALES $ 0 $ 0 $ 0 $ 3. COLLECTION OF ACCOUNTS RECEIVABLE 499,384 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 0 1,082,400 380,000 0 TOTAL RECEIPTS $ 499,384 $ 1,082,400 $ 380,000 $ 0 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 0 $ 0 $ 146,889 $ 0 8. PAYROLL TAXES PAID 89,708 9. SALES, USE & OTHER TAXES PAID 21 10. SECURED/RENTAL/LEASES 0 11. UTILITIES 260,897 12. INSURANCE 0 13. INVENTORY PURCHASES 146,466 14. VEHICLE EXPENSES 0 15. TRAVEL & ENTERTAINMENT 861 16. REPAIRS, MAINTENANCE & SUPPLIES 49,567 17. ADMINISTRATIVE & SELLING 1,950 18. OTHER (attach list) 502,300 622,722 0 0 TOTAL DISBURSEMENTS FROM OPERATIONS $ 502,300 $ 1,082,484 $ 236,597 $ 0 19. PROFESSIONAL FEES $ 0 $ 0 $ 0 $ 0 20. U.S. TRUSTEE FEES 0 0 0 0 21. OTHER REORGANIZATION EXPENSES (attach list) 0 0 0 0 TOTAL DISBURSEMENTS $ 502,300 $ 1,082,484 $ 236,597 $ 0 22. NET CASH FLOW $ -2,916 $ -84 $ 143,403 $ 0 23. CASH - END OF MONTH (MOR-2) $ 100 $ 781 $ 147,148 $ 0 CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS 5577659 1171987307 DATE ----------------- ----------- --------------- ----------- 1. CASH-BEGINNING OF MONTH $ 1,000 $ 205,297 $ 213,922 RECEIPTS: 2. CASH SALES $ 0 $ 0 $ 0 3. COLLECTION OF ACCOUNTS RECEIVABLE 989,914 1,489,298 4. LOANS & ADVANCES (attach list) 0 5. SALE OF ASSETS 0 6. OTHER (attach list) 3,764 0 1,466,164 TOTAL RECEIPTS $ 993,678 $ 0 $ 2,955,462 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 0 $ 0 $ 146,889 8. PAYROLL TAXES PAID 89,708 9. SALES, USE & OTHER TAXES PAID 21 10. SECURED/RENTAL/LEASES 0 11. UTILITIES 260,897 12. INSURANCE 0 13. INVENTORY PURCHASES 146,466 14. VEHICLE EXPENSES 0 15. TRAVEL & ENTERTAINMENT 861 16. REPAIRS, MAINTENANCE & SUPPLIES 49,567 17. ADMINISTRATIVE & SELLING 1,950 18. OTHER (attach list) 935,561 0 2,060,583 TOTAL DISBURSEMENTS FROM OPERATIONS $ 935,561 $ 0 $ 2,756,941 19. PROFESSIONAL FEES $ 0 $ 0 $ 0 20. U.S. TRUSTEE FEES 0 0 0 21. OTHER REORGANIZATION EXPENSES (attach list) 0 0 0 TOTAL DISBURSEMENTS $ 935,561 $ 0 $ 2,756,941 22. NET CASH FLOW $ 58,117 $ 0 $ 198,521 23. CASH - END OF MONTH (MOR-2) $ 59,117 $ 205,297 $ 412,443
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 December 2001
OTHER CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS: 00100547117 00103316965 103405768 630181003508 ----------------------- ----------- ----------- ----------- -------------- 6. OTHER RECEIPTS: Interest Income 401(k) Plan Refund Cobra Insurance Payment Miscellaneous Royalty Owners Trust Account Emission Credits Intercompany Transfers 1,082,400 380,000 Account Transfers TOTAL OTHER RECEIPTS $ 0 $ 1,082,400 $ 380,000 $ 0 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures Revenue & Royalties 0 Interest Payment Employee Benefits 26,485 Severance tax Pre-petition checks voided in current period Insiders Restricted Cash Transactions Contract Services 367,969 Licenses / Fees / Permits 0 Freight 59,460 Account Transfers Outstanding checks to Balance to G/L 168,807 CIT Revolver Payments 502,300 TOTAL OTHER DISBURSEMENTS $ 502,300 $ 622,722 $ 0 $ 0 OTHER CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS: 5577659 1171987307 DATE ----------------------- --------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 0 401(k) Plan Refund 0 Cobra Insurance Payment 3,764 3,764 Miscellaneous 0 0 Royalty Owners Trust Account 0 Emission Credits 0 Intercompany Transfers 1,462,400 Account Transfers 0 0 -- TOTAL OTHER RECEIPTS $ 3,764 $ 0 $ 1,466,164 18. OTHER DISBURSEMENTS: Lease Operating Expense $ 0 Workover Expense 0 Capital Expenditures 0 Revenue & Royalties 0 Interest Payment 0 Employee Benefits 26,485 Severance tax 0 Pre-petition checks voided in current period 0 Insiders 0 Restricted Cash Transactions 0 Contract Services 367,969 Licenses / Fees / Permits 0 Freight 59,460 Account Transfers 0 Outstanding checks to Balance to G/L 168,807 CIT Revolver Payments 935,561 1,437,861 TOTAL OTHER DISBURSEMENTS $ 935,561 $ 0 $ 2,060,583
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF DECEMBER 2001
BANK NAME Chase Bk of TX Bank One Bank of America Chase Bk of TX Chase Bk of TX Chase Bk of Del ACCOUNT NUMBER 00103316965 5577659 0011 7198 7307 00103405768 00100547117 630181003508 ACCOUNT TYPE AP Trade Lockbox Petty Cash Payroll AR Wires Contr. Disb. -------------- --------------- ---------- ---------------- -------------- --------------- --------------- BANK BALANCE $ 781 $ 59,117 $ 205,297 $ 147,148 $ 100 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 781 $ 59,117 $ 205,297 $ 147,148 $ 100 $ -- ================================================================================================================================= BEGINNING CASH - PER BOOKS $ 864 $ 1,000 $ 205,297 $ 3,744 $ 3,016 $ -- RECEIPTS 993,678 -- 499,384 TRANSFERS BETWEEN ACCOUNTS 1,082,400 380,000 (WITHDRAWAL)CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (1,082,484) (935,561) (236,597) (502,300) ENDING CASH - PER BOOKS $ 781 $ 59,117 $ 205,297 $ 147,148 $ 100 $ -- ================================================================================================================================= BANK NAME ACCOUNT NUMBER ACCOUNT TYPE TOTAL -------------- ----------- BANK BALANCE $ 412,443 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 412,443 =========================================== BEGINNING CASH - PER BOOKS $ 213,922 RECEIPTS 1,493,062 TRANSFERS BETWEEN ACCOUNTS 1,462,400 (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (2,756,941) ENDING CASH - PER BOOKS $ 412,442 ===========================================
MOR-8 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE ------------------------------------- ------------- -------- -------- -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 DATE --------------- ------------- -------- -------- -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES ; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9