EX-99.6 8 h96317ex99-6.txt MONTHLY OPERATING RPT.-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: MARCH YEAR: 2002
MONTH 9/30/01 10/31/01 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 -------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 1,122,478 $ 1,076,560 $1,116,391 $1,156,830 $1,059,266 $1,059,266 $ 1,087,139 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 884,743 $ 786,631 $ 819,067 $ 662,161 $ 584,521 $ 781,134 $ 786,914 NET INCOME (LOSS) (MOR-6) $ 162,907 $ 140,457 $ 154,684 $ 15,785 $ (61,844) $ (80,692) $ 140,569 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7) $ 1,289,890 $ 2,681,498 $3,848,954 $1,130,065 $2,967,841 $1,041,816 $ 1,279,695
***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 3 of 14 4/19/02 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 14 4/19/02
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 MARCH 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 $ 171 $ 636 $ - $ 168 Trade accounts receivable, net - 44,243 66 2,566 Other Receivables - 786 - 2,789 Due from affiliates 1,088 23,250 13,271 - Inventories - 27,259 - 8,532 Prepaid expenses 33 3,326 - 33 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,292 99,500 13,337 14,088 Property, plant and equipment, net - 123,661 2,948 6,025 Deferred income taxes - - - - Investments-Third Party - 1,500 5,146 - Investments in Subs 35,060 94,735 - - Other assets 865 34,854 - 1,282 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,217 $ 354,250 $ 21,431 $ 21,395 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 152,846 1,057 6,314 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 34,227 - 8,596 Unsecured debt 186,538 267,452 1,110 70,403 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 (986) (60,226) 3,930 (6,913) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,618) (511,066) 19,264 (136,968) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,618) (513,603) 19,264 (136,968) TOTAL LIABILITIES AND EQUITY $ 37,217 $ 354,250 $ 21,431 $ 21,395 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 13 $ - $ - Trade accounts receivable, net - 3,057 873 4,660 Other Receivables - 4,379 - - Due from affiliates 3,134 53,499 572 6,412 Inventories - - 240 1,845 Prepaid expenses (283) - - - Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,851 60,948 1,685 12,917 Property, plant and equipment, net - - - 42,533 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,900 1,558 - Other assets 2,616 4,258 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,467 $ 361,106 $ 3,243 $ 55,450 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 53 25,099 461 1,537 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 549 10,087 - - 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 4,109 1,557 Retained earnings-Filing Date 779 (90,594) (877) (10,909) Retained earnings-Post Filing Date (406) 914 (620) 922 Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 373 (6,284) 2,612 (8,430) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 373 (6,284) 2,612 (8,430) TOTAL LIABILITIES AND EQUITY $ 5,467 $ 361,106 $ 3,243 $ 55,450 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 988 Trade accounts receivable, net - 55,465 Other Receivables - 7,954 Due from affiliates (101,596) (370) Inventories - 37,876 Prepaid expenses - 3,109 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (101,596) 105,022 Property, plant and equipment, net - 175,167 Deferred income taxes - - Investments-Third Party - 6,646 Investments in Subs (381,799) 45,454 Other assets (1) 43,874 -------------------------------- TOTAL ASSETS $(483,396) $ 376,163 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (39,358) 148,009 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (9,144) 44,315 Unsecured debt (132,624) 721,284 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 (40,376) (546,056) Retained earnings-Filing Date - (244,777) Retained earnings-Post Filing Date - (63,385) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,377) (857,494) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,377) (860,031) TOTAL LIABILITIES AND EQUITY $(483,396) $ 376,163 ================================
* 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
---------------------------------------------------------------------------------------------- Sep-2001 10/31/01 11/30/01 12/31/01 1/31/02 2/28/02 Mar-2002 ---------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 257 $ 467 $ 276 $ 420 $ 440 $ 656 $ 326 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- NOTES PAYABLE - INSURANCE 19,409 19,409 19,409 19,409 19,409 19,409 19,409 TAX PAYABLE: -- -- -- -- -- Federal Payroll Taxes -- -- -- -- -- State Payroll & Sales -- -- -- -- -- Ad Valorem Taxes -- -- -- -- -- Other Taxes -- -- 21 8 35 13 -- TOTAL TAXES PAYABLE $ -- $ -- $ 21 $ 8 $ 35 13 $ 12 SECURED DEBT POST-PETITION -- -- -- -- 12 ACCRUED INTEREST PAYABLE -- -- -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 108 70 90 110 130 150 170 2. Lease Operating Expenses/Capital -- -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 19,774 $ 19,946 $ 19,796 $ 19,946 $ 20,014 20,228 $ 19,917 ====================================================================================================================================
*Payment Requires Court Approval (1) Represents the period 07/17/01 thru 08/31/01. MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH MARCH 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $187,367 $ 176,145 $ 6 $ 437 $ 5,514 $ 5,265 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $187,367 $ 176,145 $ 6 $ 437 $ 5,514 $ 5,265 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 39,000 $ 39,000 $ -- $ -- $ -- $ -- 31-60 1,181 1,181 -- -- -- -- 61-90 3,223 3,223 -- -- -- -- 91 + 24,217 24,217 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 67,621 $ 67,621 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MARCH 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) $ -- $ 21,923,335 $ (192,124) $ 1,554,279 TOTAL COST OF REVENUES -- 19,697,291 (192,124) 1,813,762 GROSS PROFIT $ -- $ 2,226,044 $ -- $ (259,483) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 960 $ 915,630 $ -- $ 162,097 Insiders Compensation -- 150,683 -- -- Professional Fees -- 1,369,747 -- -- Other (Earnings in Joint Venture) -- (61,716) 61,716 -- TOTAL OPERATING EXPENSE $ 960 $ 2,374,344 $ 61,716 $ 162,097 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (960) $ (148,300) $ (61,716) $ (421,580) INTEREST EXPENSE (includes amort of debt fees) (166) 2,354,624 -- 614,434 DEPRECIATION -- 1,860,833 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (166) $ 4,215,457 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (794) $ (4,363,757) $ (61,716) $ (1,083,585) INCOME TAXES -- -- (6,793) -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (794) $ (4,363,757) $ (54,923) $ (1,083,585) ==================================================================================================================================== 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 $ 1,087,139 $ 286,617 TOTAL COST OF REVENUES -- 46,546 405,159 GROSS PROFIT $ 83,333 $ 1,040,593 $ (118,542) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 3,400 $ 253,679 $ (69,538) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 3,400 $ 253,679 $ (69,538) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 79,933 $ 786,914 $ (49,004) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,550 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,345 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 19,268 $ 140,569 $ (49,004) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 19,268 $ 140,569 $ (49,004) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,175,608 $ (83,333) $ 27,834,854 TOTAL COST OF REVENUES 1,987,571 (83,333) 23,674,872 GROSS PROFIT $ 1,188,037 $ -- $ 4,159,982 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 626,659 $ (558,861) 1,334,026 Insiders Compensation -- -- 150,683 Professional Fees -- -- 1,369,747 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 626,659 $ (558,861) $ 2,854,456 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 561,378 $ 558,861 1,305,526 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,725,968 DEPRECIATION 324,785 -- 2,741,984 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 324,785 $ 558,861 $ 6,467,952 ================================================================================================================= NET INCOME BEFORE TAXES $ 236,593 $ -- $ (5,162,426) INCOME TAXES -- -- (6,793) ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 236,593 $ -- $ (5,155,633) =================================================================================================================
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 9/30/01 10/31/01 11/30/01 12/31/01 1/31/02 ------------------------------------------------------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ 507,515 $ 915,961 $ 329,491 $ 9,021 $ 19,490 RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ 392,516 3. COLLECTION OF ACCOUNTS RECEIVABLE 961,439 2,094,812 831,076 1,978,631 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 736,897 216 2,697,409 748,018 923,764 TOTAL RECEIPTS $ 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 DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- $ 8. PAYROLL TAXES PAID 9. SALES, USE & OTHER TAXES PAID 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 35 14,940 211,897 107,893 143,435 18. OTHER (attach list) 1,217,610 2,660,642 3,590,632 1,006,383 2,816,699 TOTAL DISBURSEMENTS FROM OPERATIONS $ 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 $ 1,289,890 $2,681,498 $3,848,954 $1,130,065 $ 2,967,841 22. NET CASH FLOW $ 408,446 $ (586,470) $ (320,470) $ 10,469 $ (65,446) 23. CASH - END OF MONTH (MOR-2) $ 915,961 $ 329,491 $ 9,021 $ 19,490 $ (45,956) CASH RECEIPTS AND FILING TO DISBURSEMENTS 2/28/02 3/31/02 DATE ------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ (45,956) $ (13,573) $ 271,082 RECEIPTS: 2. CASH SALES $ $ $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 969,180 242,792 10,308,072 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 105,019 1,063,679 26,014,204 TOTAL RECEIPTS $ 1,074,199 $ 1,306,464 $36,322,277 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ -- 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID 35,293 13,458 198,674 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 9,970 137,451 646,766 18. OTHER (attach list) 996,552 1,128,786 35,734,722 TOTAL DISBURSEMENTS FROM OPERATIONS $ 1,041,816 $ 1,279,695 $36,580,162 19. PROFESSIONAL FEES $ -- $ -- 20. U.S. TRUSTEE FEES -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- TOTAL DISBURSEMENTS $ 1,041,816 $ 1,279,695 $36,580,162 22. NET CASH FLOW $ 32,383 $ 26,769 $ (257,886) 23. CASH - END OF MONTH (MOR-2) $ (13,573) $ 13,196 $ 13,196
(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: 9/30/01 10/31/01 11/30/01 ---------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 185 $ 204 401(k) Plan Refund Cobra Insurance Payment 23 Miscellaneous 3,887 12 Advance from Parent company - Sterling Chemicals Loan Advance from a subsidiary - Sterling NRO -- Return of investment from SPCUS 1,463,216 Rec'd in error, to be returned in Sep 01 SPC Ltd (328,947) cash receipts re Inter company AR 827,114 -- 1,234,170 rec'd in error and to be returned in Nov 01. 234,658 TOTAL OTHER RECEIPTS $ 736,897 $ 216 $2,697,409 18. OTHER DISBURSEMENTS: Workover Expense Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 329,798 78,000 1,982,808 cash disbursements re Inter company AP 663,621 454,578 CIT revolver cash sweep 155,838 2,582,642 1,153,246 Capital contribution to SPCUS 68,353 TOTAL OTHER DISBURSEMENTS $ 1,217,610 $2,660,642 $3,590,632 OTHER CASH RECEIPTS AND 12/31/01 1/31/02 2/28/02 3/31/02 FILING TO DISBURSEMENTS: DATE ---------------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income 2 13 19 $ 33 $ 1,563 401(k) Plan Refund -- -- Cobra Insurance Payment -- -- Miscellaneous -- 3,922 Advance from Parent company - Sterling Chemicals -- 105,000 105,000 Loan Advance from a subsidiary - Sterling NRO -- 19,409,155 Return of investment from SPCUS 107,183 -- 1,570,399 Rec'd in error, to be returned in Sep 01 SPC Ltd -- -- cash receipts re Inter company AR 640,833 923,751 1,063,639 4,689,507 rec'd in error and to be returned in Nov 01. -- 234,658 TOTAL OTHER RECEIPTS $ 748,018 $ 923,764 $ 105,019 $ 1,063,672 $ 26,014,204 18. OTHER DISBURSEMENTS: Workover Expense -- -- Capital Expenditures -- -- Interest Payment -- -- Pre-petition checks voided in current period -- -- Advance to Parent company - Sterling Chemicals 484,482 119,811 949,787 26,262,104 cash disbursements re Inter company AP 228,534 440,050 31,852 1,818,635 CIT revolver cash sweep 293,367 1,891,948 996,552 147,147 7,220,740 Capital contribution to SPCUS 364,890 433,243 TOTAL OTHER DISBURSEMENTS $1,006,383 $ 2,816,699 $ 996,552 $ 1,128,786 $ 35,734,722
(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 MONTH OF MARCH 31, 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 (30,203) 15,530 (13,573) =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 147,147 -- 95,645 242,792 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) -- -- 1,063,639 15,033 1,078,672 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 147,147 -- 1,159,284 15,033 1,321,464 --------------- --------------- --------------- --------------- --------------- (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 13,458 13,458 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 132,409 5,042 137,451 18. OTHER (attach list) 147,147 -- 996,639 -- 1,143,786 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 147,147 -- 1,129,048 18,500 1,294,695 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 147,147 -- 1,129,048 18,500 1,294,695 =============== =============== =============== =============== =============== 22. NET CASH FLOW -- -- 30,236 (3,467) 26,769 23. CASH - END OF MONTH (MOR-2) 1,000 100 33 12,063 13,196
(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 MARCH 31, 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 Advance from Parent company - Sterling Chemicals 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 $1,063,639 rec'd in error and to be returned in Oct 01. TOTAL OTHER RECEIPTS $ -- $ -- $1,063,639 18. OTHER DISBURSEMENTS: Transfer Between Accounts 15,000 Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 949,787 cash disbursements re Inter company AP 31,852 CIT revolver cash sweep 147,147 Capital contribution to SPCUS -- TOTAL OTHER DISBURSEMENTS $ 147,147 $ -- $ 996,639 CIBC OTHER CASH RECEIPTS AND 77-01713 DISBURSEMENTS: Checking Total -------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income 33 $ 33 401(k) Plan Refund -- Advance from Parent company - Sterling Chemicals -- Miscellaneous -- -- Transfer Between Accounts 15,000 15,000 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 1,063,639 rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ 15,033 $ -- $ 1,078,672 18. OTHER DISBURSEMENTS: Transfer Between Accounts 15,000 Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals -- 949,787 cash disbursements re Inter company AP -- 31,852 CIT revolver cash sweep 147,147 Capital contribution to SPCUS -- TOTAL OTHER DISBURSEMENTS $ -- $ -- $ 1,143,786
(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 MARCH 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 $ 1,000 $ 100 $ 33 $ 1,134 $ 25,520 $ 26,654 DEPOSIT IN TRANSIT -- -- OUTSTANDING CHECKS -- (13,458) (13,458) ADJUSTED BANK BALANCE $ 1,000 $ 100 $ 33 $ 1,134 $ 12,062 $ -- $ -- $ 13,196 BEGINNING CASH - PER BOOKS $ 1,000 $ 100 $ (30,203) $ (29,103) $ 15,530 $ (13,573) RECEIPTS 147,147 1,159,284 1,306,431 33 $ 1,306,464 TRANSFERS BETWEEN ACCOUNTS (15,000) (15,000) 15,000 -- (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (147,147) (1,114,048) (1,261,195) (18,500) $ (1,279,695) ENDING CASH - PER BOOKS $ 1,000 $ 100 $ 33 $ 1,133 $ 12,063 $ -- $ -- $ 13,196
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 Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 FILING TO /COMP TYPE (2) DATE -------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS Sep-2001 Oct-2001 Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 FILING TO NAME/ORDER DATE DATE -------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/ (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