EX-99.6 8 h94494ex99-6.txt MONTHLY OPERATING REPORT - STERLING CANADA INC EXHIBIT 99.6 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CANADA, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37810-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: JANUARY YEAR: 2002
MONTH 7/16/01-8/31/01 9/30/01 10/31/01 11/30/01 12/31/01 1/31/02 ----------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 1,688,935 $ 1,122,478 $ 1,076,560 $1,116,391 $1,156,830 $1,059,266 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 1,252,362 $ 884,743 $ 786,631 $ 819,067 $ 662,161 $ 584,521 NET INCOME (LOSS) (MOR-6) $ 282,441 $ 162,907 $ 140,457 $ 154,684 $ 15,785 $ (61,844) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7) $22,340,404 $ 1,289,890 $ 2,681,498 $3,848,954 $1,130,065 $2,967,841
***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 CANADA, INC. CASE NUMBER: 01-37810-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 2 of 13 2/19/02 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 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 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 London chartered vessels. Liability per 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. 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 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
Page 3 of 13 2/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 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. 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 Syndicate registered tonnage CERCLA - $5,000,000 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 Impairment $4,000,000 per loss ECS 1 year 1/15/02 Loss Potential Liability (Petrochem & $8,000,000 aggregate (Indian Harbor) 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 --- ----------------- -------------- 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 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 Impairment $106,200 - Financed through AFCO. 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 JANUARY 31, 2002 (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 $ 1,984 $ - $ 124 Trade accounts receivable, net - 44,350 67 2,714 Other Receivables - 1,567 - 3,659 Due from affiliates 1,090 21,376 12,801 - Inventories - 33,468 - 8,636 Prepaid expenses 33 4,338 - 108 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,293 107,083 12,868 15,241 Property, plant and equipment, net - 123,619 3,074 6,120 Deferred income taxes - - - - Investments-Third Party - 1,500 6,165 - Investments in Subs 35,060 94,735 - - Other assets 865 35,805 - 1,331 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,218 $ 362,742 $ 22,107 $ 22,692 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 142,108 1,702 5,638 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 29,528 - 7,415 Unsecured debt 186,538 280,615 1,110 70,749 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - (458) - 458 Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (985) (49,001) 3,961 (4,563) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (2) - - ------------------------------------------------------------------------------------ (176,617) (499,842) 19,295 (134,618) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,617) (502,379) 19,295 (134,618) TOTAL LIABILITIES AND EQUITY $ 37,218 $ 362,742 $ 22,107 $ 22,692 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ - $ - $ 50 Trade accounts receivable, net - 2,274 914 4,531 Other Receivables - 4,371 - - Due from affiliates 2,967 51,814 666 6,590 Inventories - - 278 1,615 Prepaid expenses (283) - - - Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,684 58,459 1,858 12,786 Property, plant and equipment, net - - - 42,977 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 296,023 1,804 - Other assets 2,662 5,284 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,346 $ 359,766 $ 3,662 $ 55,763 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 48 20,014 648 1,953 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 474 8,702 - - Unsecured debt 840 265,052 170 62,478 Other / Intercompany - 5,351 - 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 4,232 1,803 Retained earnings-Filing Date 779 (90,594) (877) (10,909) Retained earnings-Post Filing Date (447) 693 (511) 438 Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 332 (6,505) 2,844 (8,668) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 332 (6,505) 2,844 (8,668) TOTAL LIABILITIES AND EQUITY $ 5,346 $ 359,766 $ 3,662 $ 55,763 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,328 Trade accounts receivable, net - 54,850 Other Receivables - 9,597 Due from affiliates (99,100) (1,796) Inventories - 43,997 Prepaid expenses - 4,196 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (99,100) 113,172 Property, plant and equipment, net - 175,790 Deferred income taxes - - Investments-Third Party - 7,665 Investments in Subs (382,169) 45,453 Other assets (1) 45,946 -------------------------------- TOTAL ASSETS $(481,270) $ 388,026 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (38,587) 133,524 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (7,889) 38,230 Unsecured debt (132,154) 735,398 Other / Intercompany (201,020) 5,351 Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,746) (546,057) Retained earnings-Filing Date - (244,777) Retained earnings-Post Filing Date - (50,415) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (2) -------------------------------- (40,747) (844,526) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,747) (847,063) TOTAL LIABILITIES AND EQUITY $(481,270) $ 388,026 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
---------------------------------------------------------------------------------------------- 8/31/2001(1) Sep-2001 10/31/01 11/30/01 12/31/01 1/31/02 MONTH ---------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 807 $ 257 $ 467 $ 276 $ 420 $ 440 $ -- ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- -- NOTES PAYABLE - INSURANCE 19,409 19,409 19,409 19,409 19,410 19,409 -- TAX PAYABLE: -- -- -- -- -- -- -- Federal Payroll Taxes -- -- -- -- -- -- -- State Payroll & Sales -- -- -- -- -- -- -- Ad Valorem Taxes -- -- -- -- -- -- -- Other Taxes -- -- -- 21 8 35 -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ 21 $ 8 $ 35 -- SECURED DEBT POST-PETITION -- -- -- -- -- -- -- ACCRUED INTEREST PAYABLE -- -- -- -- -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- -- -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- 108 70 90 110 130 -- 2. Lease Operating Expenses/Capital -- -- -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 20,216 $ 19,774 $ 19,946 $ 19,796 $ 19,947 $ 20,014 -- ====================================================================================================================================
*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 1/31/02 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $ 75,457 $ 70,976 $ -- $ 228 $ 4,253 $ -- 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $ 75,457 $ 70,976 $ -- $ 228 $ 4,253 $ -- ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 42,738 $ 42,738 $ -- $ -- $ -- $ -- 31-60 1,086 1,086 -- -- -- -- 61-90 (82) (82) -- -- -- -- 91 + 22,940 22,940 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 66,682 $ 66,682 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JANUARY 31, 2002 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) $ -- $ 20,053,870 $ 302,130 $ 1,578,891 TOTAL COST OF REVENUES -- 19,648,584 302,130 1,802,124 GROSS PROFIT $ -- $ 405,286 $ -- $ (223,233) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 51,350 $ 888,529 $ -- $ 115,959 Insiders Compensation -- 142,597 -- -- Professional Fees -- 1,707,557 -- -- Other (Earnings in Joint Venture) -- 464,670 (464,670) -- TOTAL OPERATING EXPENSE $ 51,350 $ 3,203,353 $ (464,670) $ 115,959 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (51,350) $ (2,798,067) $ 464,670 $ (339,192) INTEREST EXPENSE (includes amort of debt fees) (184) 2,500,805 -- 614,434 DEPRECIATION -- 1,881,286 -- 47,618 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (184) $ 4,382,091 $ -- $ 662,052 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (51,166) $ (7,180,158) $ 464,670 $ (1,001,244) INCOME TAXES -- -- 24,982 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (51,166) $ (7,180,158) $ 439,688 $ (1,001,244) ==================================================================================================================================== 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 $ 1,059,266 $ 328,152 TOTAL COST OF REVENUES -- 193,620 499,502 GROSS PROFIT $ 83,333 $ 865,646 $ (171,350) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 5,970 $ 281,125 $ (90,173) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 5,970 $ 281,125 $ (90,173) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 77,363 $ 584,521 $ (81,177) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,570 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,365 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 16,698 $ (61,844) $ (81,177) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 16,698 $ (61,844) $ (81,177) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,335,583 $ (83,333) $ 26,657,892 TOTAL COST OF REVENUES 2,068,154 (83,333) 24,430,781 GROSS PROFIT $ 1,267,429 $ -- $ 2,227,111 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 627,517 $ (558,861) 1,321,416 Insiders Compensation -- -- 142,597 Professional Fees -- -- 1,707,557 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 627,517 $ (558,861) $ 3,171,570 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 639,912 $ 558,861 (944,459) INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,872,151 DEPRECIATION 407,434 -- 2,845,133 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 407,434 $ 558,861 $ 6,717,284 ================================================================================================================= NET INCOME BEFORE TAXES $ 232,478 $ -- $ (7,661,743) INCOME TAXES -- -- 24,982 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 232,478 $ -- $ (7,686,725) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING CANADA INC. CASE NUMBER: 01-37810-H4-11
CASH RECEIPTS AND DISBURSEMENTS 8/31/2001(1) 9/30/01 10/31/01 11/30/01 12/31/01 1/31/02 ------------------------------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ 271,082 $ 507,515 $ 915,961 $ 329,491 $ 9,021 $ 19,490 RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- $ 392,516 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,837,627 961,439 2,094,812 831,076 1,978,631 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 19,739,210 736,897 216 2,697,409 748,018 923,764 TOTAL RECEIPTS $ 22,576,837 $ 1,698,336 $2,095,028 $3,528,485 $1,140,534 $ 2,902,395 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- $ -- $ 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID 1,840 72,245 5,916 46,425 15,790 7,707 10. SECURED/RENTAL/LEASES -- -- 11. UTILITIES -- -- 12. INSURANCE -- -- 13. INVENTORY PURCHASES -- -- 14. VEHICLE EXPENSES -- -- 15. TRAVEL & ENTERTAINMENT -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 17. ADMINISTRATIVE & SELLING 21,145 35 14,940 211,897 107,893 143,435 18. OTHER (attach list) 22,317,418 1,217,610 2,660,642 3,590,632 1,006,383 2,816,699 TOTAL DISBURSEMENTS FROM OPERATIONS $ 22,340,404 $ 1,289,890 $2,681,498 $3,848,954 $1,130,065 $ 2,967,841 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 22,340,404 $ 1,289,890 $2,681,498 $3,848,954 $1,130,065 $ 2,967,841 22. NET CASH FLOW $ 236,433 $ 408,446 $ (586,470) $ (320,470) $ 10,469 $ (65,446) 23. CASH - END OF MONTH (MOR-2) $ 507,515 $ 915,961 $ 329,491 $ 9,021 $ 19,490 $ (45,956) CASH RECEIPTS AND FILING TO DISBURSEMENTS DATE --------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ 271,082 RECEIPTS: 2. CASH SALES $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 9,096,100 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 24,845,514 TOTAL RECEIPTS $33,941,614 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A DISBURSEMENTS: 7. NET PAYROLL $ -- 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID 149,923 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 499,345 18. OTHER (attach list) 33,609,384 TOTAL DISBURSEMENTS FROM OPERATIONS $34,258,652 19. PROFESSIONAL FEES $ -- 20. U.S. TRUSTEE FEES -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- TOTAL DISBURSEMENTS $34,258,652 22. NET CASH FLOW $ (317,038) 23. CASH - END OF MONTH (MOR-2) $ (45,956)
(1) Represents the period 7/17/01 through 8/31/01. MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: 8/31/2001 (1) 9/30/01 10/31/01 -------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 1,107 $ 185 $ 204 401(k) Plan Refund Cobra Insurance Payment Miscellaneous 3,887 12 Emission Credits Loan Advance from a subsidiary - Sterling NRO 19,409,155 -- Return of investment from SPCUS Rec'd in error, to be returned in Sep 01 SPC Ltd 328,947 (328,947) cash receipts re Inter company AR 827,114 -- rec'd in error and to be returned in Nov 01. 234,658 TOTAL OTHER RECEIPTS $ 19,739,210 $ 736,897 $ 216 18. OTHER DISBURSEMENTS: Workover Expense Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 22,317,418 329,798 78,000 cash disbursements re Inter company AP 663,621 CIT revolver cash sweep 155,838 2,582,642 Capital contribution to SPCUS 68,353 TOTAL OTHER DISBURSEMENTS $ 22,317,418 $ 1,217,610 $2,660,642 OTHER CASH RECEIPTS AND 11/30/01 12/31/01 1/31/02 FILING TO DISBURSEMENTS: DATE ----------------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income 2 13 $ 1,512 401(k) Plan Refund -- -- Cobra Insurance Payment 23 -- -- Miscellaneous -- 3,922 Emission Credits -- -- Loan Advance from a subsidiary - Sterling NRO -- 19,409,155 Return of investment from SPCUS 1,463,216 107,183 -- 1,570,399 Rec'd in error, to be returned in Sep 01 SPC Ltd -- -- cash receipts re Inter company AR 1,234,170 640,833 923,751 3,625,868 rec'd in error and to be returned in Nov 01. -- 234,658 TOTAL OTHER RECEIPTS $2,697,409 $ 748,018 $ 923,764 $ 24,845,514 18. OTHER DISBURSEMENTS: Workover Expense -- -- Capital Expenditures -- -- Interest Payment -- -- Pre-petition checks voided in current period -- -- Advance to Parent company - Sterling Chemicals 1,982,808 484,482 119,811 25,312,317 cash disbursements re Inter company AP 454,578 228,534 440,050 1,786,783 CIT revolver cash sweep 1,153,246 293,367 1,891,948 6,077,040 Capital contribution to SPCUS 364,890 433,243 TOTAL OTHER DISBURSEMENTS $3,590,632 $1,006,383 $ 2,816,699 $ 33,609,384
(1)Represents the period 7/17/01 through 8/31/01. MOR-7 ATTACHMENT CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H-11 MONTH OF JANUARY 2002
Bank One Chase Manhattan Chase Manhattan CIBC CASH RECEIPTS AND 5561841 001-00526970 001-03317054 77-01713 DISBURSEMENTS Lock Box General Checking Checking Total ----------------- --------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH 1,000 100 4,746 13,644 19,490 =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,815,624 103,697 59,311 1,978,631 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) -- -- 923,751 13 923,764 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 1,815,624 103,697 923,751 59,324 2,902,395 --------------- --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A =============== =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- -- 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID 7,707 7,707 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 138,480 4,955 143,435 18. OTHER (attach list) 1,788,252 103,697 924,751 -- 2,816,699 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,788,252 103,697 1,063,231 12,662 2,967,841 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 1,788,252 103,697 1,063,231 12,662 2,967,841 =============== =============== =============== =============== =============== 22. NET CASH FLOW 27,372 -- (139,480) 46,662 (65,446) 23. CASH - END OF MONTH (MOR-2) 28,372 100 (134,734) 60,306 (45,956)
(1) Represents the period 7/17/01 through 8/31/01. MOR-7 * Applies to Individuals debtor's only. CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF JANUARY 2002
Chase Chase Bank One Manhatten Manhatten OTHER CASH RECEIPTS AND 5561841 001-00526970 001-03317054 DISBURSEMENTS: Lock Box General Checking -------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ -- $ -- $ -- 401(k) Plan Refund Cobra Insurance Payment Miscellaneous Transfer Between Accounts Loan Advance from a subsidiary - Sterling NRO -- Funds belonging to Sterling Pulp Chemicals Ltd. Return of investment from SPCUS cash receipts re Inter company AR 923,751 rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ -- $ -- $ 923,751 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 119,811 cash disbursements re Inter company AP 440,050 CIT revolver cash sweep 1,788,252 103,697 Capital contribution to SPCUS 364,890 TOTAL OTHER DISBURSEMENTS $ 1,788,252 $ 103,697 $ 924,751 CIBC OTHER CASH RECEIPTS AND 77-01713 DISBURSEMENTS: Checking Total -------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income 13 $ 13 401(k) Plan Refund -- Cobra Insurance Payment -- Miscellaneous -- -- Transfer Between Accounts -- -- Loan Advance from a subsidiary - Sterling NRO -- Funds belonging to Sterling Pulp Chemicals Ltd. -- Return of investment from SPCUS -- cash receipts re Inter company AR 923,751 rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ 13 $ -- $ 923,764 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals -- 119,811 cash disbursements re Inter company AP -- 440,050 CIT revolver cash sweep 1,891,948 Capital contribution to SPCUS 364,890 TOTAL OTHER DISBURSEMENTS $ -- $ -- $ 2,816,699
(1)Represents the period 7/17/01 through 8/31/01. MOR-7 ATTACHMENT CASE NAME: Sterling Canada, Inc. CASE NUMBER: 01-37810-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF JANUARY 31, 2002
BANK NAME Bank One Chase Manhattan Chase Manhattan CIBC ACCOUNT NUMBER 5561841 001-00526970 001-03317054 77-01713 ACCOUNT TYPE Lock Box General Checking Consolidated Checking TOTAL ------------ ------------ --------------- --------------- ------------ ---------- ------------ BANK BALANCE $ 28,373 $ 100 $ 1,870 $ 30,343 $ 64,997 $ 95,340 DEPOSIT IN TRANSIT -- -- OUTSTANDING CHECKS (136,604) (136,604) -- (141,296) ADJUSTED BANK BALANCE $ 28,373 $ 100 $ (134,734) $ (106,261) $ (4,691) $ -- $ -- $ (45,956) BEGINNING CASH - PER BOOKS $ 1,000 $ 100 $ 4,746 $ 5,846 $ 60,305 $ 19,490 RECEIPTS 1,815,624 103,697 923,751 2,843,071 13,644 $ 2,902,395 TRANSFERS BETWEEN ACCOUNTS -- 59,324 -- (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (1,788,252) (103,697) (1,063,231) (2,955,179) (12,662) $ (2,967,841) ENDING CASH - PER BOOKS $ 28,373 $ 100 $ (134,734) $ (106,261) $ 60,305 $ -- $ -- $ (45,956)
MOR-8 CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
INSIDERS: NAME/POSITION 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO /COMP TYPE (2) DATE ------------------------------------------------------------------------------------------------------------------------------------ 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS 8/31/2001 (1) Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 FILING TO NAME/ORDER DATE DATE ------------------------------------------------------------------------------------------------------------------------------------ 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9