EX-99.2 4 h97319exv99w2.txt MONTHLY OPERATING REPORT - STERLING CHEMICALS INC EXHIBIT 99.2 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37806-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: APRIL YEAR: 2002
MONTH 10/31/01 11/30/01 12/31/01 ------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 21,691,268 $ 21,898,981 $ 18,571,799 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (1,550,037) $ (4,402,886) $ (1,583,651) NET INCOME (LOSS) (MOR-6) $ (5,850,757) $ (8,543,837) $ (5,648,707) PAYMENTS TO INSIDERS (MOR-9) $ 156,110 $ 106,743 $ 204,995 PAYMENTS TO PROFESSIONALS (MOR-9) $ 1,408,481 $ 802,884 $ 683,788 TOTAL DISBURSEMENTS (MOR-7) $ 72,465,946 $ 64,901,653 $ 62,720,965 MONTH 1/31/02 2/28/02 3/31/02 4/30/02 ------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $ 20,053,870 $ 20,096,849 $ 21,923,335 $ 42,567,625 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (2,798,067) $ (2,749,269) $ (148,300) $ 5,024,220 NET INCOME (LOSS) (MOR-6) $ (7,180,158) $ (6,872,689) $ (4,363,757) $ 495,693 PAYMENTS TO INSIDERS (MOR-9) $ 142,597 $ 116,429 $ 150,683 $ 494,281 PAYMENTS TO PROFESSIONALS (MOR-9) $ 1,238,773 $ 1,045,883 $ 1,257,449 $ 1,572,252 TOTAL DISBURSEMENTS (MOR-7) $ 65,092,860 $ 63,507,042 $ 80,262,399 $ 78,079,249
***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 CHEMICALS, INC. CASE NUMBER: 01-37806-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 15 5/17/02 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 5/17/02
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 CHEMICALS, INC. CASE #01-37806-H4-11 City of Texas City 165,001.83 Galveston County Tax Assessor 400,554.24 Texas City ISD 838,392.03 Equistar Chemicals, LP 250,000.00 ------------- TOTAL $1,653,948.10 =============
(1) ALL PREPETITION PAYMENTS MADE IN APRIL WERE PURSUANT TO COURT APPROVAL OF THESE PAYMENTS RELATED TO STATE TAXES, WITH THE EXCEPTION OF THE EQUISTAR PAYMENT, WHICH WAS PURSUANT TO A SEPARATE COURT ORDER ALLOWING THE SETTLEMENT OF A PREPETITION CLAIM WITH EQUISTAR. STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS) CONSOLIDATING BALANCE SHEET FOR THE PERIOD ENDED APRIL 30, 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 $ 1,866 $ - $ 152 Trade accounts receivable, net - 67,997 71 2,626 Other Receivables - 624 - 2,694 Due from affiliates 1,205 23,874 13,782 - Inventories - 32,762 - 8,535 Prepaid expenses 33 7,578 - 52 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 134,701 13,853 14,059 Property, plant and equipment, net - 121,481 2,885 5,977 Deferred income taxes - - - - Investments-Third Party - 1,500 5,162 - Investments in Subs 35,060 94,735 - - Other assets 865 34,560 - 1,258 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 386,977 $ 21,900 $ 21,294 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 164 183,715 1,493 6,413 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 36,577 - 9,186 Unsecured debt 186,538 266,481 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) - 15,769 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 (1,033) (59,747) 3,963 (7,678) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,665) (510,587) 19,297 (137,733) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,665) (513,124) 19,297 (137,333) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 386,977 $ 21,900 $ 21,294 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 164 $ - $ 49 Trade accounts receivable, net - 2,552 872 4,299 Other Receivables - 4,389 - - Due from affiliates 3,217 55,026 534 7,527 Inventories - - 251 1,803 Prepaid expenses (283) - - 21 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,934 62,131 1,657 13,699 Property, plant and equipment, net - - - 42,248 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,593 3,746 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,527 $ 361,688 $ 3,176 $ 55,947 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 59 24,885 537 1,709 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 587 10,780 - - 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 4,020 1,557 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (390) 1,017 (674) (11,180) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 389 (6,181) 2,469 (8,105) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 389 (6,181) 2,469 (8,105) TOTAL LIABILITIES AND EQUITY $ 5,527 $ 361,888 $ 3,176 $ 55,947 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,402 Trade accounts receivable, net - 78,417 Other Receivables - 7,707 Due from affiliates (105,219) (54) Inventories - 43,351 Prepaid expenses - 7,401 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (105,219) 139,224 Property, plant and equipment, net - 172,591 Deferred income taxes - - Investments-Third Party - 6,662 Investments in Subs (381,672) 45,453 Other assets (1) 43,021 -------------------------------- TOTAL ASSETS $(486,892) $ 406,951 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (41,841) 177,134 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (9,773) 47,357 Unsecured debt (133,135) 719,802 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,249) (546,018) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (75,722) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (857,366) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,903) TOTAL LIABILITIES AND EQUITY $(486,892) $ 406,951 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-037806-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
---------------------------------------------------------------------------------------- 10/31/01 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 (revised) ---------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 29,556 $ 35,921 $ 25,602 $ 43,566 $ 43,581 $ 53,511 $ 61,483 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- -- TAX PAYABLE: -- -- -- -- -- Federal Payroll Taxes -- 260 -- -- 8 8 State Payroll & Sales 45 39 178 231 364 437 405 Ad Valorem Taxes -- -- -- -- -- -- Other Taxes 2,175 2,800 3,383 3,901 4,527 5,162 5,795 TOTAL TAXES PAYABLE $ 2,220 $ 3,099 $ 3,561 $ 4,132 $ 4,891 $ 5,607 $ 6,208 SECURED DEBT POST-PETITION 44,780 49,084 51,301 51,346 51,127 56,066 78,668 ACCRUED INTEREST PAYABLE 299 469 436 370 553 670 752 *ACCRUED PROFESSIONAL FEES: 4,802 4,798 4,714 5,236 5,587 5,989 6,106 OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 21,729 22,520 31,422 37,458 31,736 31,003 30,498 2. Lease Operating Expenses/Capital -- -- -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 103,386 $ 115,891 $ 117,036 $ 142,108 $137,475 $ 152,846 ) $ 183,715 ==============================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH APRIL 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $218,752 $ 207,065 $ 8 $ 404 $ 6,177 $ 5,098 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $218,752 $ 207,065 $ 8 $ 404 $ 6,177 $ 5,098 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 62,239 $ 62,239 $ -- $ -- $ -- $ -- 31-60 516 516 -- -- -- -- 61-90 911 911 -- -- -- -- 91 + 27,343 27,343 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 91,009 $ 91,009 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 APRIL 30, 2002 STATEMENT OF INCOME (LOSS)
ATTACHED 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) $ -- $ 42,567,625 $ 193,956 $ 1,707,430 TOTAL COST OF REVENUES -- 34,665,250 193,956 1,735,717 GROSS PROFIT $ -- $ 7,902,375 $ -- $ (28,287) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 46,778 $ 631,122 $ -- $ 99,565 Insiders Compensation -- 494,281 -- -- Professional Fees -- 1,736,873 -- -- Other (Earnings in Joint Venture) -- 15,879 (15,879) -- TOTAL OPERATING EXPENSE $ 46,778 $ 2,878,155 $ (15,879) $ 99,565 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (46,778) $ 5,024,220 $ 15,879 $ (127,852) INTEREST EXPENSE (includes amort of debt fees) (188) 2,578,733 -- 614,434 DEPRECIATION -- 1,949,794 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (188) $ 4,528,527 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (46,590) $ 495,693 $ 15,879 $ (789,902) INCOME TAXES -- -- 1,601 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (46,590) $ 495,693 $ 14,278 $ (789,902) ==================================================================================================================================== 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 $ 1,076,963 $ 365,854 TOTAL COST OF REVENUES -- 68,649 494,189 GROSS PROFIT $ 83,333 $ 1,008,314 $ (128,335) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 5,936 $ 242,315 $ (73,531) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 5,936 $ 242,315 $ (73,531) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 77,397 $ 765,999 $ (54,804) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,602 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,397 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 16,732 $ 101,602 $ (54,804) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 16,732 $ 101,602 $ (54,804) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,332,627 $ (83,333) $ 49,244,455 TOTAL COST OF REVENUES 2,030,382 (83,333) 39,104,810 GROSS PROFIT $ 1,302,245 $ -- $ 10,139,645 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 609,715 $ (540,833) 1,021,067 Insiders Compensation -- -- 494,281 Professional Fees -- -- 1,736,873 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 609,715 $ (540,833) $ 3,252,221 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 692,530 $ 540,833 6,887,424 INTEREST EXPENSE (includes amort of debt fees) -- 540,833 3,950,079 DEPRECIATION 327,490 -- 2,833,695 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 327,490 $ 540,833 $ 6,783,774 ================================================================================================================= NET INCOME BEFORE TAXES $ 365,040 $ -- $ 103,650 INCOME TAXES -- -- 1,601 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 365,040 $ -- $ 102,049 =================================================================================================================
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 CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
CASH RECEIPTS AND FILING TO DISBURSEMENTS Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 DATE ------------- ----------- ---------- ---------- ---------- ---------- ------------ ---------- ----------- 1. CASH-BEGINNING OF MONTH 1,217,400 159,499 (421,404) (256,194) 498,098 (1,530,893) (605,842) 9,346,546 =========== ========== ========== ========== ========== ========== ========== =========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 23,372,230 20,886,265 22,270,996 24,602,303 20,717,983 25,478,506 17,926,575 217,132,387 4. LOANS & ADVANCES - CIT REVOLVER 35,600,000 31,300,000 29,200,000 31,600,000 26,900,000 36,300,000 46,100,000 299,400,000 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 12,435,815 12,134,485 11,415,178 9,644,850 13,860,068 19,408,945 16,090,857 122,076,092 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------- TOTAL RECEIPTS 71,408,045 64,320,750 62,886,174 65,847,152 61,478,051 81,187,451 80,117,432 638,608,479 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A =========== ========== ========== ========== ========== ========== ========== =========== DISBURSEMENTS: 7. NET PAYROLL 1,820,918 2,759,985 1,932,984 1,297,213 1,930,462 2,601,421 1,983,856 18,943,905 8. PAYROLL TAXES PAID 898,310 443,402 870,019 974,973 972,750 1,053,588 932,205 8,371,837 9. SALES, USE & OTHER TAXES PAID 54,688 55,177 50,776 57,123 -- 1,404,405 1,650,149 4,777,119 10.SECURED/RENTAL/LEASES 267,731 179,910 184,920 161,222 154,571 99,905 30,705 1,453,640 11.UTILITIES 5,169,539 3,737,135 4,230,558 2,765,343 2,158,233 1,150,288 6,922,372 31,203,454 12.INSURANCE 452,349 425,842 456,145 728,204 589,057 410,554 50,625 5,412,442 13.INVENTORY PURCHASES 12,316,618 12,485,921 8,921,056 11,876,414 2,984,285 10,861,846 17,691,587 99,949,637 14.VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15.TRAVEL & ENTERTAINMENT 48,462 53,052 64,095 60,079 63,635 36,818 65,732 462,723 16.REPAIRS, MAINTENANCE & SUPPLIES 1,519,414 1,100,361 1,085,130 1,487,951 7,400,962 4,837,494 3,235,006 23,107,831 17.ADMINISTRATIVE & SELLING 3,178,324 3,136,392 3,142,158 2,804,552 2,442,379 3,841,855 4,503,340 26,066,542 18.OTHER (attach list) 45,331,111 39,721,594 41,099,335 41,641,012 43,639,825 52,706,777 39,441,420 418,627,799 TOTAL DISBURSEMENTS FROM OPERATIONS 71,057,466 64,098,769 62,037,177 63,854,086 62,336,159 79,004,950 76,506,997 638,376,929 19.PROFESSIONAL FEES 1,368,231 802,884 683,788 1,185,274 1,045,883 1,257,449 1,525,502 7,880,254 20.U.S. TRUSTEE FEES 40,250 -- -- 53,500 -- -- 46,750 140,500 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- 125,000 -- -- 125,000 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------- TOTAL DISBURSEMENTS 72,465,946 64,901,653 62,720,965 65,092,860 63,507,042 80,262,399 78,079,249 646,522,683 =========== ========== ========== ========== ========== ========== ========== =========== 22.NET CASH FLOW (1,057,901) (580,903) 165,210 754,292 (2,028,991) 925,052 2,038,183 (7,914,205) 23.CASH - END OF MONTH (MOR-2) 159,499 (421,404) (256,194) 498,098 (1,530,893) (605,842) 1,432,341 1,432,341
MOR-7 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 DATE ---------- ---------- ---------- ---------- ---------- ------------ ---------- ----------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- 80,302 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous 1,147,947 181,336 146,500 100,833 223,221 131,124 195,444 2,606,687 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Account Transfers 11,197,868 9,047,528 10,348,106 9,120,571 13,636,846 17,715,686 15,239,518 111,619,435 Intercompany Transfers 90,000 2,905,621 920,573 423,445 -- 1,562,134 655,895 7,769,668 ---------- ---------- ---------- ---------- ---------- ------------ ---------- ----------- TOTAL OTHER RECEIPTS 12,435,815 12,134,485 11,415,178 9,644,850 13,860,068 19,408,945 16,090,857 122,076,092 ========== ========== ========== ========== ========== ============ ========== =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures 408,428 297,523 558,388 1,491,633 1,841,654 1,418,900 (581,465) 5,944,698 Revenue & Royalties -- -- -- -- - -- -- -- Interest Payment 97,161 -- -- -- - -- -- 97,161 Employee Benefits 2,430,056 1,259,446 1,276,424 2,711,036 1,602,513 2,285,842 2,492,292 17,698,003 Severance tax -- -- -- -- - -- -- -- Pre-petition checks voided in current period -- -- -- -- - -- -- (30,000) Account Transfers 11,197,868 9,047,528 10,348,106 9,120,571 13,636,846 17,715,686 15,239,518 111,619,435 CIT Revolver Payments 24,983,680 21,322,848 22,948,750 23,718,420 21,934,238 25,605,169 17,344,416 233,815,684 Intercompany Transfers 6,213,918 7,794,248 5,967,667 4,599,352 4,624,574 5,681,179 4,946,658 49,482,818 ---------- ---------- ---------- ---------- ---------- ------------ ---------- ----------- TOTAL OTHER DISBURSEMENTS 45,331,111 39,721,594 41,099,335 41,641,012 43,639,825 52,706,777 39,441,420 418,627,799 ========== ========== ========== ========== ========== ============ ========== ===========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
CASH RECEIPTS AND Chase Chase Chase Chase Chase DISBURSEMENTS 00103275427 00101824317 00103316882 103405743 6301810002508 ----------------- --------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH -- 100 57,582 625,848 (1,295,124) =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 15,628,692 4. LOANS & ADVANCES - CIT REVOLVER 46,100,000 5. SALE OF ASSETS 6. OTHER (attach list) -- -- 755,895 4,150,000 10,476,967 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS -- 15,628,692 46,855,895 4,150,000 10,476,967 --------------- --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A =============== =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- 1,983,856 -- 8. PAYROLL TAXES PAID 932,205 9. SALES, USE & OTHER TAXES PAID 244,438 1,405,711 10. SECURED/RENTAL/LEASES 30,705 11. UTILITIES 6,922,372 12. INSURANCE 49,921 705 13. INVENTORY PURCHASES 17,455,481 236,106 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 65,732 16. REPAIRS, MAINTENANCE & SUPPLIES 159,589 3,075,417 17. ADMINISTRATIVE & SELLING 249,151 4,254,189 18. OTHER (attach list) -- 14,846,724 21,832,409 -- (247,956) --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS -- 14,846,724 46,913,360 2,916,061 8,820,608 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- 1,525,502 20. U.S. TRUSTEE FEES -- -- -- -- 46,750 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS -- 14,846,724 46,913,360 2,916,061 10,392,860 =============== =============== =============== =============== =============== 22. NET CASH FLOW -- 781,968 (57,465) 1,233,939 84,106 23. CASH - END OF MONTH (MOR-2) -- 782,068 116 1,859,787 (1,211,018) 782,184.55 1,859,787.49 (1,211,017.93) 0.00 0.00 0.00 CASH RECEIPTS AND Chase Chase Wells Fargo Bank One Total DISBURSEMENTS 6301810036508 6301810028508 4496870106 5561833 Debtor ----------------- --------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH -- -- -- 5,753 (605,842) =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,297,883 17,926,575 4. LOANS & ADVANCES - CIT REVOLVER 46,100,000 5. SALE OF ASSETS -- 6. OTHER (attach list) 497,614 14,937 -- 195,444 16,090,857 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 497,614 14,937 -- 2,493,326 80,117,432 --------------- --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A =============== =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- 1,983,856 8. PAYROLL TAXES PAID 932,205 9. SALES, USE & OTHER TAXES PAID 1,650,149 10. SECURED/RENTAL/LEASES 30,705 11. UTILITIES 6,922,372 12. INSURANCE 50,625 13. INVENTORY PURCHASES 17,691,587 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT 65,732 16. REPAIRS, MAINTENANCE & SUPPLIES 3,235,006 17. ADMINISTRATIVE & SELLING 4,503,340 18. OTHER (attach list) 497,614 14,937 -- 2,497,692 39,441,420 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 497,614 14,937 -- 2,497,692 76,506,997 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- 1,525,502 20. U.S. TRUSTEE FEES -- -- -- -- 46,750 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 497,614 14,937 -- 2,497,692 78,079,249 =============== =============== =============== =============== =============== 22. NET CASH FLOW -- -- -- (4,366) 2,038,183 23. CASH - END OF MONTH (MOR-2) -- -- -- 1,387 1,432,341 1,387.05 0.00
MOR-7 * Applies to Individual debtor's only. CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
OTHER CASH RECEIPTS AND Chase Chase Chase Chase Chase DISBURSEMENTS: 00103275427 00101824317 00103316882 103405743 6301810002508 -------------- ----------- ----------- ----------- --------- ------------- 6. OTHER RECEIPTS: Interest Income 401(k) Plan Refund Cobra Insurance Payment Miscellaneous Royalty Owners Trust Account Emission Credits Account Transfers 100,000 4,150,000 10,476,967 Intercompany Transfers 655,895 ----------- ---------- ---------- --------- ---------- TOTAL OTHER RECEIPTS -- -- 755,895 4,150,000 10,476,967 =========== ========== ========== ========= ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures (581,465) Revenue & Royalties Interest Payment Employee Benefits 1,646,232 333,509 Severance tax Pre-petition checks voided in current period Account Transfers 15,239,518 CIT Revolver Payments 14,846,724 -- Intercompany Transfers 4,946,658 ----------- ---------- ---------- --------- ---------- TOTAL OTHER DISBURSEMENTS -- 14,846,724 21,832,409 -- (247,956) =========== ========== ========== ========= ========== OTHER CASH RECEIPTS AND Chase Chase Wells Fargo Bank One Total DISBURSEMENTS: 6301810036508 6301810028508 4496870106 5561833 Debtor -------------- ------------- ------------- -------------- ------------ ------------- 6. OTHER RECEIPTS: Interest Income -- 401(k) Plan Refund -- Cobra Insurance Payment -- Miscellaneous 195,444 195,444 Royalty Owners Trust Account -- Emission Credits -- Account Transfers 497,614 14,937 15,239,518 Intercompany Transfers 655,895 --------- --------- ------------ ---------- ---------- TOTAL OTHER RECEIPTS 497,614 14,937 -- 195,444 16,090,857 ========= ========= ============ ========== ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- Workover Expense -- Capital Expenditures (581,465) Revenue & Royalties -- Interest Payment -- Employee Benefits 497,614 14,937 2,492,292 Severance tax -- Pre-petition checks voided in current period -- Account Transfers 15,239,518 CIT Revolver Payments 2,497,692 17,344,416 Intercompany Transfers 4,946,658 --------- --------- ------------ ---------- ---------- TOTAL OTHER DISBURSEMENTS 497,614 14,937 -- 2,497,692 39,441,420 ========= ========= ============ ========== ==========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H-11 CASH ACCOUNT RECONCILIATION MONTH OF APRIL 2002 ---------------------------------
CLOSED BANK NAME Chase Bk of TX Chase Bk of TX Chase Bk of TX Chase Bk of TX Chase Bk of DE ACCOUNT NUMBER 00103275427 00101824317 00103316882 00103405743 6301810036508 -------------- ACCOUNT TYPE Special Disb Fund AR Wires Concentration Payroll Contr. Disb. -------------- ------------------ --------------- --------------- --------------- --------------- BANK BALANCE $ -- $ 782,068 $ 116 $ 1,057,320 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS (1,211,017) OTHER 1 802,467 --------------- --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ 782,068 $ 117 $ 1,859,787 $ (1,211,017) =============== =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ 100 $ 57,582 $ 625,848 $ (1,295,124) RECEIPTS 15,628,692 46,100,000 TRANSFERS BETWEEN ACCOUNTS -- (19,430,281) 4,150,000 10,476,967 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS -- (14,846,724) (26,727,184) (2,916,061) (10,392,860) --------------- --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ 782,068 $ 117 $ 1,859,787 $ (1,211,017) =============== =============== =============== =============== =============== CLOSED BANK NAME Chase Bk of Del Chase Bk of Del Wells Fargo Bank One ACCOUNT NUMBER 6301810036508 6301810028508 4496870106 5561833 -------------- ACCOUNT TYPE Sal Ben Disb Flex Ben Disb Concentration Lockbox TOTAL -------------- --------------- --------------- --------------- --------------- --------------- BANK BALANCE $ -- $ -- $ -- $ 1,813 $ 1,841,317 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS (1,211,017) OTHER (426) 802,042 --------------- --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ -- $ -- $ 1,387 $ 1,432,341 =============== =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ -- $ -- $ 5,753 $ (605,842) RECEIPTS 2,493,326 64,222,018 TRANSFERS BETWEEN ACCOUNTS 497,614 14,937 (4,290,763) (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (497,614) (14,937) (2,497,692) (57,893,072) --------------- --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ -- $ -- $ 1,387 $ 1,432,341 =============== =============== =============== =============== ===============
MOR-8 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-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: FILING TO NAME/POSITION/COMP TYPE(2) Oct-2001 Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 DATE --------------------------------------- ---------- --------- --------- --------- -------- -------- -------- ---------- 1. Frank Diassi/Chairman of Board/Salary $ 31,250 $ 31,250 $ 31,250 $ -- $ -- $ 171,875 2. Frank Diassi/Chairman of Board/Bonus -- -- 23,438 3. Frank Diassi/Chairman of Board/Expenses -- -- -- -- 2,262 4. Frank Diassi/Chairman of Board/Vacation payout 45,193 45,193 5. David Elkins/President/Salary 29,167 29,167 29,167 29,167 29,167 30,333 30,333 279,418 6. David Elkins/President/Bonus -- -- 21,875 -- 22,750 136,500 203,000 7. David Elkins/President/Expenses 410 -- 2,035 3,378 4,601 -- 5,115 20,587 8. David Elkins/President/Life Insurance 2,184 -- -- 2,184 9. Richard Crump/Exec VP Opers/Salary 25,000 25,000 25,000 28,636 27,500 27,917 27,917 249,470 10. Richard Crump/Exec VP Opers/Bonus -- -- 18,750 1,875 20,938 125,625 185,938 11. Richard Crump/Exec VP Opers/Expense 642 2,331 531 4,453 5,404 4,610 6,728 29,830 12. Paul Vanderhoven/VP Finance & CFO/Salary 16,667 16,667 16,667 16,667 16,667 18,333 18,333 161,668 13. Paul Vanderhoven/VP Finance & CFO/Bonus -- -- 10,000 -- 11,000 79,200 110,200 14. Paul Vanderhoven/VP Finance & CFO/Expense 974 -- 2,199 4,509 4,629 2,474 6,402 26,760 15. Robert Roten/Former Pres & Board Member/SERP 2,328 2,328 2,328 2,328 2,328 2,328 2,328 20,952 16. Robert Roten/Former Pres & Board Member/Consulting fee -- -- -- -- 10,000 10,000 10,000 40,000 17. Robert Roten/Former Pres & Board Member/BOD fee 17,550 -- 15,150 -- -- 13,750 46,450 18. Rolf Towe/Board Member/BOD fees 10,150 -- 10,850 -- -- 9,650 30,650 19. Rolf Towe/Board Member/Expenses -- -- -- -- 16,133 -- 16,133 20. Hunter Nelson/Board Member 13,550 -- 11,150 -- -- 10,350 35,050 21. Frank Hevrdejs/Board Member 10,750 -- 12,250 -- -- 12,050 35,050 ---------- --------- --------- --------- -------- --------- -------- ---------- TOTAL INSIDERS (MOR-1) $ 158,438 $ 106,743 $ 204,995 $ 142,597 $116,429 $ 150,683 $494,281 $1,736,108 ========== ========= ========= ========= ======== ========= ======== ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Oct-2001 Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 DATE --------------------------- ---------- --------- --------- ---------- ------------ ----------- ----------- ----------- 1. Logan & Company, Inc. $ 15,330 $ 65,978 $ 30,272 $ 9,958.00 $ 15,624.27 $ 23,247 $ 3,541 $ 175,194 2. Andrews & Kurth LLP 324,139 -- 210,726 139,340 128,643.28 213,187 132,819 1,148,856 3. US Trustee 40,250 -- -- 53,500 -- -- 46,750 140,500 4. Skadden, Arps, Slate, Meagher & Flom LLP 751,593 -- -- 293,229 466,138.76 634,706 321,403 2,467,070 5. Akin Gump Strauss 277,168 126,980 231,124 -- 35,089.74 120,257 78,728 869,347 6. Arthur Andersen -- 134,935 31,792 115,041 22,556.70 -- 95,421 399,745 7. Lazard Freres & Co. LLC 268,613 -- -- 284,550.16 153,356 295,856 1,002,375 8. Baker & Botts 154,797 132,523 111,985 46,197.50 32,861 66,007 544,370 9. Groom Law Group 11,331 4,587 10,078 9,773.24 9,738 23,879 69,386 10. Nexant, Inc. 40,250 42,764 8,399 37,309.09 16,416 9,595 154,734 11. Greenhill & Co. 497,243 -- 53,680 498,253 1,049,176 ---------- --------- ---------- ---------- ------------ ----------- ----------- ----------- TOTAL PROFESSIONALS (MOR-1) $1,408,481 $ 802,884 $ 683,788 $1,238,773 $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 8,020,752 ========== ========= ========== ========== ============ =========== =========== ===========
(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. MOR-9