EX-99.4 6 h95254ex99-4.txt MONTHLY OPERATING REPORT - 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: FEBRUARY YEAR: 2002
MONTH 7/16/01-8/31/01 9/30/01 10/31/01 11/30/01 12/31/01 1/31/02 2/28/02 ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 4,472,168 $ 1,311,018 $1,891,936 $1,569,117 $1,466,000 $ 1,578,891 $1,141,971 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (209,403) $ (228,529) $ (309,258) $ (277,643) $ (13,259) $ (339,192) $ (604,191) NET INCOME (LOSS) (MOR-6) $ (1,202,563) $ (891,256) $ (971,769) $ (939,694) $ (675,264) $(1,001,244) $1,266,289 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 $ 3,117,506 $2,773,236
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE ----------------------------- ---- CASUALTY YES (x) NO ( ) 08 - 01 - 02 LIABILITY YES (x) NO ( ) 07 - 01 - 02 VEHICLE YES (x) NO ( ) 07 - 01 - 02 WORKER'S YES (x) NO ( ) 07 - 01 - 02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? YES If so, describe See Attachment 3 -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ---------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A Plan of Reorganization is currently being developed. -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ---------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ---------------------------------------------- MOR-1 CASE NAME: STERLING 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 3/19/02 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 4 of 15 3/19/02
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. ATTACHMENT 3 POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER(1) STERLING FIBERS, INC. CASE #01-37808-H4-11 Santa Rosa County Tax Collector $143,488.25 ----------- TOTAL $143,488.25 ===========
(1) ALL PREPETITION PAYMENTS MADE IN FEBRUARY WERE PURSUANT TO COURT APPROVAL OF THESE PAYMENTS STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS) CONSOLIDATING BALANCE SHEET FOR THE PERIOD ENDED FEBRUARY 28, 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 $ 171 $ 987 $ - $ 166 Trade accounts receivable, net - 42,552 66 2,667 Other Receivables - 352 - 2,549 Due from affiliates 1,089 23,083 11,987 - Inventories - 26,269 - 8,806 Prepaid expenses 33 3,401 - 134 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,293 96,644 12,053 14,322 Property, plant and equipment, net - 123,845 3,011 6,073 Deferred income taxes - - - - Investments-Third Party - 1,500 6,208 - Investments in Subs 35,060 94,735 - - Other assets 865 35,231 - 1,306 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,218 $ 351,955 $ 21,272 $ 21,701 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 137,475 754 6,053 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 31,877 - 8,006 Unsecured debt 186,538 278,605 1,110 70,121 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - 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) (55,953) 4,074 (5,474) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,617) (506,793) 19,408 (135,529) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,617) (509,330) 19,408 (135,529) TOTAL LIABILITIES AND EQUITY $ 37,218 $ 351,955 $ 21,272 $ 21,701 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,285 924 4,883 Other Receivables - 4,379 - - Due from affiliates 3,051 53,211 982 7,785 Inventories - - 308 1,490 Prepaid expenses (283) - - 86 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,768 59,876 2,214 14,244 Property, plant and equipment, net - - - 42,751 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 296,023 1,804 - Other assets 2,639 4,771 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,407 $ 360,669 $ 4,018 $ 56,995 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 50 25,493 1,603 3,073 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 511 9,395 - - Unsecured debt 840 265,052 170 62,343 Other / Intercompany - - - 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 (425) 775 (570) 685 Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 354 (6,423) 2,785 (8,421) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 354 (6,423) 2,785 (8,421) TOTAL LIABILITIES AND EQUITY $ 5,407 $ 360,669 $ 4,018 $ 56,995 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,324 Trade accounts receivable, net - 53,377 Other Receivables - 7,280 Due from affiliates (100,962) 226 Inventories - 36,873 Prepaid expenses - 3,371 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (100,962) 102,451 Property, plant and equipment, net - 175,680 Deferred income taxes - - Investments-Third Party - 7,708 Investments in Subs (382,169) 45,453 Other assets (1) 44,811 -------------------------------- TOTAL ASSETS $(483,132) $ 376,103 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (40,635) 133,326 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (8,517) 41,272 Unsecured debt (131,340) 733,439 Other / Intercompany (201,020) - 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 - (57,873) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,747) (851,983) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,747) (854,520) TOTAL LIABILITIES AND EQUITY $(483,132) $ 376,103 ================================
* 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 1/31/02 2/28/02 ------------------------------------------------------------------------------------------ TRADE ACCOUNTS PAYABLE $ 3,026 $ 3,514 $ 5,878 $ 5,656 $ 2,614 $ 5,479 5,821 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- -- TAX PAYABLE: -- -- -- Federal Payroll Taxes 5 5 -- -- 26 -- State Payroll & Sales 13 1 (1) (2) (3) (3) -- Ad Valorem Taxes -- -- -- -- -- -- Other Taxes 389 62 87 112 137 162 232 TOTAL TAXES PAYABLE $ 407 $ 68 $ 86 $ 110 $ 161 $ 159 $ 232 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 $ 5,638 $ 6,053 ================================================================================================================================
*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 FEBRUARY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $ 84,203 $ 73,702 $ -- $ 364 $ 4,872 $ 5,265 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $ 84,203 $ 73,702 $ -- $ 364 $ 4,872 $ 5,265 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 37,252 $ 37,252 $ -- $ -- $ -- $ -- 31-60 3,579 3,579 -- -- -- -- 61-90 583 583 -- -- -- -- 91 + 23,787 23,787 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 65,201 $ 65,201 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 FEBRUARY 28, 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) $ -- $ 20,096,849 $ (262,068) $ 1,141,971 TOTAL COST OF REVENUES -- 20,284,408 (262,068) 1,592,669 GROSS PROFIT $ -- $ (187,559) $ -- $ (450,698) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 957 $ 797,803 $ -- $ 153,493 Insiders Compensation -- 116,429 -- -- Professional Fees -- 1,604,053 -- -- Other (Earnings in Joint Venture) -- 43,425 (43,425) -- TOTAL OPERATING EXPENSE $ 957 $ 2,561,710 $ (43,425) $ 153,493 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (957) $ (2,749,269) $ 43,425 $ (604,191) INTEREST EXPENSE (includes amort of debt fees) (182) 2,251,760 -- 614,434 DEPRECIATION -- 1,871,660 -- 47,664 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (182) $ 4,123,420 $ -- $ 662,098 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (775) $ (6,872,689) $ 43,425 $ (1,266,289) INCOME TAXES -- -- 5,405 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (775) $ (6,872,689) $ 38,020 $ (1,266,289) ==================================================================================================================================== 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 $ 239,252 TOTAL COST OF REVENUES -- 57,846 363,178 GROSS PROFIT $ 83,333 $ 1,001,420 $ (123,926) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 1,445 $ 220,286 $ (64,900) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 1,445 $ 220,286 $ (64,900) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 81,888 $ 781,134 $ (59,026) INTEREST EXPENSE (includes amort of debt fees) 37,665 214,647 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 700,442 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 21,223 $ 80,692 $ (59,026) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 21,223 $ 80,692 $ (59,026) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,227,039 $ (83,333) $ 25,502,309 TOTAL COST OF REVENUES 2,083,502 (83,333) 24,036,202 GROSS PROFIT $ 1,143,537 $ -- $ 1,466,107 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 570,455 $ (504,778) 1,174,761 Insiders Compensation -- -- 116,429 Professional Fees -- -- 1,604,053 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 570,455 $ (504,778) $ 2,895,243 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 573,082 $ 504,778 (1,429,136) INTEREST EXPENSE (includes amort of debt fees) -- 504,778 3,623,102 DEPRECIATION 327,097 -- 2,755,216 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 327,097 $ 504,778 $ 6,378,318 ================================================================================================================= NET INCOME BEFORE TAXES $ 245,985 $ -- $ (7,807,454) INCOME TAXES -- -- 5,405 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 245,985 $ -- $ (7,812,859) =================================================================================================================
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-H3-11
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 $ 412,443 ------------ ------------ ---------- ----------- ---------- ---------- RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 4,481,633 2,962,072 1,914,342 1,695,639 $1,489,298 $1,582,440 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 1,246,396 TOTAL RECEIPTS $ 5,710,178 $ 4,347,316 $3,675,546 $3,006,962 $2,955,462 $2,828,836 (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 $ 211,662 8. PAYROLL TAXES PAID 142,508 64,049 68,457 58,459 89,708 81,238 9. SALES, USE & OTHER TAXES PAID -- -- 2,686 2,786 21 802 10. SECURED/RENTAL/LEASES -- 4,000 -- 486 -- 11. UTILITIES 122,540 -- 236,879 279,750 260,897 242,028 12. INSURANCE -- 280,148 -- -- --$1,582,440 13. INVENTORY PURCHASES 47,098 162,287 257,863 83,785 146,466 61,262 14. VEHICLE EXPENSES -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT 208 14,891 9,766 10,869 861 546 16. REPAIRS, MAINTENANCE & SUPPLIES 26,090 58,632 78,051 78,837 49,567 84,536 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 2,435,431 TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,063,610 $ 4,412,856 $3,673,189 $3,090,908 $2,756,941 $3,117,506 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 $3,117,506 22. NET CASH FLOW $ (353,432) $ (65,540) $ 2,357 $ (83,946) $ 198,521 $ (288,670) 23. CASH - END OF MONTH (MOR-2) $ 361,051 $ 295,511 $ 297,869 $ 213,923 $ 412,444 $ 123,772 CASH RECEIPTS AND FILING TO DISBURSEMENTS Feb-02 DATE ----------------- ---------- ------------ 1. CASH-BEGINNING OF MONTH $ 123,772 $ 714,483 ---------- ------------ RECEIPTS: 2. CASH SALES $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,349,186 15,474,609 4. LOANS & ADVANCES (attach list) -- -- 5. SALE OF ASSETS -- -- 6. OTHER (attach list) 1,465,834 9,864,711 TOTAL RECEIPTS $2,815,019 $ 25,339,319 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 142,024 $ 1,440,049 8. PAYROLL TAXES PAID 61,762 566,181 9. SALES, USE & OTHER TAXES PAID 567 6,862 10. SECURED/RENTAL/LEASES -- 4,486 11. UTILITIES 192,360 1,334,455 12. INSURANCE -- 280,148 13. INVENTORY PURCHASES 151,616 910,376 14. VEHICLE EXPENSES -- -- 15. TRAVEL & ENTERTAINMENT 6,593 43,735 16. REPAIRS, MAINTENANCE & SUPPLIES 55,567 431,280 17. ADMINISTRATIVE & SELLING -- 10,036 18. OTHER (attach list) 2,162,748 20,860,638 TOTAL DISBURSEMENTS FROM OPERATIONS $2,773,236 $ 25,888,246 19. PROFESSIONAL FEES $ -- $ -- 20. U.S. TRUSTEE FEES -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- TOTAL DISBURSEMENTS $2,773,236 $ 25,888,246 22. NET CASH FLOW $ 41,783 $ (548,926) 23. CASH - END OF MONTH (MOR-2) $ 165,556 $ 165,557
(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-H3-11
OTHER CASH RECEIPTS AND 8/31/2001 (1) Sep-01 Oct-01 Nov-01 Dec-01 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 Jan-02 Feb-02 FILING TO DISBURSEMENTS: DATE ----------------------- ---------- ---------- ----------- 6. OTHER RECEIPTS: Interest Income -- $ 545 401(k) Plan Refund -- -- Cobra Insurance Payment -- 4,834 31,674 Miscellaneous 32,396 169,092 Royalty Owners Trust Account -- Emission Credits -- Intercompany Transfers 1,214,000 1,461,000 8,953,400 Account Transfers 710,000 TOTAL OTHER RECEIPTS $1,246,396 $1,465,834 $ 9,864,711 18. OTHER DISBURSEMENTS: Lease Operating Expense -- $ -- Workover Expense -- -- Capital Expenditures -- 17,812 Revenue & Royalties -- 10,150 Interest Payment -- -- Employee Benefits 27,352 27,296 204,147 Severance tax -- -- Pre-petition checks voided in current period -- (5,215) Insiders -- -- Restricted Cash Transactions -- -- Contract Services 464,117 463,768 2,687,610 Licenses / Fees / Permits 14,645 2,190 36,051 Freight 73,970 56,410 511,018 Account Transfers 393,386 200,000 1,103,386 Outstanding checks to Balance to G/L (160,665) 104,132 (313,366) CIT Revolver Payments 1,622,626 1,308,951 14,473,592 TOTAL OTHER DISBURSEMENTS $2,435,431 $2,162,748 $18,725,186
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01 MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 FEBRUARY 2002
CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS 00100547117 00103316965 103405768 630181003508 ----------------- ----------- ------------- ----------- ------------- 1. CASH-BEGINNING OF MONTH $ 100.00 $ 492.92 $ 54,248.01 $ 0.00 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 $ 0.00 $ 3. COLLECTION OF ACCOUNTS RECEIVABLE 164,073.26 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 0.00 1,261,000.00 200,000.00 0.00 TOTAL RECEIPTS $164,073.26 $1,261,000.00 $200,000.00 $ 0.00 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ 0 $142,024.17 $ 0.00 8. PAYROLL TAXES PAID 61,761.52 9. SALES, USE & OTHER TAXES PAID 566.75 10. SECURED/RENTAL/LEASES 11. UTILITIES 192,360.16 12. INSURANCE 13. INVENTORY PURCHASES 151,616.05 14. VEHICLE EXPENSES 0.00 15. TRAVEL & ENTERTAINMENT 6,592.76 16. REPAIRS, MAINTENANCE & SUPPLIES 55,566.71 17. ADMINISTRATIVE & SELLING 18. OTHER (attach list) 163,266.86 853,796.49 0.00 0.00 TOTAL DISBURSEMENTS FROM OPERATIONS $163,266.86 $1,260,498.92 $203,785.69 $ 0.00 19. PROFESSIONAL FEES $ 0.00 $ 0.00 $ 0.00 $ 0.00 20. U.S. TRUSTEE FEES 0.00 0.00 0.00 0.00 21. OTHER REORGANIZATION EXPENSES (attach list) 0.00 0.00 0.00 0.00 TOTAL DISBURSEMENTS $163,266.86 $1,260,498.92 $203,785.69 $ 0.00 22. NET CASH FLOW $ 806.40 $ 501.08 $- 3,785.69 $ 0.00 23. CASH - END OF MONTH (MOR-2) $ 906.40 $ 994.00 $ 50,462.32 $ 0.00 CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS 5577659 1171987307 DATE ----------------- ------------- --------------- ------------- 1. CASH-BEGINNING OF MONTH $ 18,931.47 $ 50,000.00 $ 123,772.40 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,185,112.30 $1,349,185.56 4. LOANS & ADVANCES (attach list) 0.00 5. SALE OF ASSETS 0.00 6. OTHER (attach list) 4,833.82 0.00 1,465,833.82 TOTAL RECEIPTS $1,189,946.12 $ 0.00 $2,815,019.38 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 0.00 $ 0 $ 142,024.17 8. PAYROLL TAXES PAID 61,761.52 9. SALES, USE & OTHER TAXES PAID 566.75 10. SECURED/RENTAL/LEASES 0.00 11. UTILITIES 192,360.16 12. INSURANCE 0.00 13. INVENTORY PURCHASES 151,616.05 14. VEHICLE EXPENSES 0.00 15. TRAVEL & ENTERTAINMENT 6,592.76 16. REPAIRS, MAINTENANCE & SUPPLIES 55,566.71 17. ADMINISTRATIVE & SELLING 0.00 18. OTHER (attach list) 1,145,684.52 0.00 2,162,747.87 TOTAL DISBURSEMENTS FROM OPERATIONS $1,145,684.52 $ 0.00 $2,773,235.99 19. PROFESSIONAL FEES $ 0.00 $ 0.00 $ 0.00 20. U.S. TRUSTEE FEES 0.00 0.00 0.00 21. OTHER REORGANIZATION EXPENSES (attach list) 0.00 0.00 0.00 TOTAL DISBURSEMENTS $1,145,684.52 $ 0.00 $2,773,235.99 22. NET CASH FLOW $ 44,261.60 $ 0.00 $ 41,783.39 23. CASH - END OF MONTH (MOR-2) $ 63,193.07 $ 50,000.00 $ 165,555.79
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 February 2002
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 1,261,000.00 200,000.00 Account Transfers TOTAL OTHER RECEIPTS $ 0.00 $1,261,000.00 $ 200,000.00 $ 0.00 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures Revenue & Royalties Interest Payment Employee Benefits 27,296.03 Severance tax Pre-petition checks voided in current period Insiders Restricted Cash Transactions Contract Services 463,768.41 Licenses / Fees / Permits 2,190.00 Freight 56,409.89 Account Transfers 200,000.00 Outstanding checks to Balance to G/L 104,132.16 CIT Revolver Payments 163,266.86 TOTAL OTHER DISBURSEMENTS $163,266.86 $853,796.49 $ 0.00 $ 0.00 OTHER CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS: 5577659 1171987307 DATE ----------------------- ---------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 0.00 401(k) Plan Refund 0.00 Cobra Insurance Payment 4,833.82 4,833.82 Miscellaneous 0.00 Royalty Owners Trust Account 0.00 Emission Credits 0.00 Intercompany Transfers 1,461,000.00 Account Transfers 0.00 0.00 0.00 TOTAL OTHER RECEIPTS $ 4,833.82 $ 0.00 $1,465.833.82 18. OTHER DISBURSEMENTS: Lease Operating Expense $ 0.00 Workover Expense 0.00 Capital Expenditures 0.00 Revenue & Royalties 0.00 Interest Payment 0.00 Employee Benefits 27,296.03 Severance tax 0.00 Pre-petition checks voided in current period 0.00 Insiders 0.00 Restricted Cash Transactions 0.00 Contract Services 463,768.41 Licenses / Fees / Permits 2,190.00 Freight 56,409.89 Account Transfers 200,000.00 Outstanding checks to Balance to G/L 104,132.16 CIT Revolver Payments $1,145,684.52 1,308,951.38 TOTAL OTHER DISBURSEMENTS $1,145,684.52 $ 0.00 $2,162,747.87
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H-11 CASH ACCOUNT RECONCILIATION MONTH OF FEBRUARY 2002
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 $ 994 $ 63,193 $ 50,000 $ 50,462 $ 906 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 994 $ 63,193 $ 50,000 $ 50,462 $ 906 $ -- ================================================================================================================================= BEGINNING CASH - PER BOOKS $ 493 $ 18,931 $ 50,000 $ 54,248 $ 100 $ -- RECEIPTS 1,189,946 -- 164,073 TRANSFERS BETWEEN ACCOUNTS 1,061,000 -- 200,000 (WITHDRAWAL)CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (1,060,499) (1,145,685) (203,786) (163,267) ENDING CASH - PER BOOKS $ 994 $ 63,193 $ 50,000 $ 50,462 $ 906 $ -- ================================================================================================================================= BANK NAME ACCOUNT NUMBER ACCOUNT TYPE TOTAL -------------- ----------- BANK BALANCE $ 165,556 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 165,556 =========================================== BEGINNING CASH - PER BOOKS $ 123,772 RECEIPTS 1,354,019 TRANSFERS BETWEEN ACCOUNTS 1,261,000 (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (2,573,236) ENDING CASH - PER BOOKS $ 165,555 ===========================================
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 Feb-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