-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ba2oev95Y90fqqN/qZ4yNdWjqQRMtjoN7LsyS2jnR/6oa+IqxYOuuvWhtP6fPPrP 2DTtXhimIE4khuD7AYe6TQ== 0000950129-02-003744.txt : 20020726 0000950129-02-003744.hdr.sgml : 20020726 20020726161146 ACCESSION NUMBER: 0000950129-02-003744 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20020620 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC /TX/ CENTRAL INDEX KEY: 0000795662 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 760502785 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10059 FILM NUMBER: 02712201 BUSINESS ADDRESS: STREET 1: 1200 SMITH ST, SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 BUSINESS PHONE: 7136503700 MAIL ADDRESS: STREET 1: 1200 SMITH ST SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC DATE OF NAME CHANGE: 19960828 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS INC /TX/ DATE OF NAME CHANGE: 19961218 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING CHEMICAL INC CENTRAL INDEX KEY: 0001014669 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 760502785 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-04343-01 FILM NUMBER: 02712202 BUSINESS ADDRESS: STREET 1: 1200 SMITH STREET STREET 2: SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 BUSINESS PHONE: 7136503700 MAIL ADDRESS: STREET 1: C/O STERLING GROUP INC STREET 2: EIGHT GREENWAY PLAZA, SUITE 702 CITY: HOUSTON STATE: TX ZIP: 77046 FORMER COMPANY: FORMER CONFORMED NAME: STX CHEMICALS CORP DATE OF NAME CHANGE: 19960516 8-K 1 h98536e8vk.txt STERLING CHEMICALS HOLDINGS, INC. - JUNE 20, 2002 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 8-K CURRENT REPORT FILED PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JUNE 20, 2002 STERLING CHEMICALS HOLDINGS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 1-00059 76-0185186 (STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.) OR ORGANIZATION) 1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------------------ STERLING CHEMICALS INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 333-04343-01 76-0502785 (STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.) OR ORGANIZATION) 1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------------------ ================================================================================ ITEM 7. EXHIBITS Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals Holdings, Inc. for May 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for May 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for May 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for May 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for May 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for May 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for May 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for May 2002. ITEM 9. REGULATION FD DISCLOSURE On July 16, 2001, Sterling Chemicals Holdings, Inc. and its subsidiaries Sterling Chemicals Inc., Sterling Chemicals Energy, Inc., Sterling Fibers, Inc., Sterling Chemicals International, Inc., Sterling Canada Inc., Sterling Pulp Chemicals US, Inc. and Sterling Pulp Chemicals Inc. filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, in Houston, Texas (the "Bankruptcy Court"). These petitions were styled as In re Sterling Chemicals Holdings, Inc., In re Sterling Chemicals Inc., In re Sterling Chemicals Energy, Inc., In re Sterling Fibers, Inc., In re Sterling Chemicals International, Inc., In re Sterling Canada Inc., In re Sterling Pulp Chemicals US, Inc. and In re Sterling Pulp Chemicals Inc., respectively, Case Numbers 01-378[05-12]-H4-11, (05-12 being the different case numbers). Each of Sterling Chemicals Holdings, Inc. and these other entities are being operated as debtors-in-possession under the Bankruptcy Code. Attached are exhibits containing monthly operating reports filed by the debtors with the Bankruptcy Court for May 2002. The monthly operating reports filed herewith contain unaudited financial information that is subject to future reconciliations and adjustments that may materially affect stockholder's equity (deficit). -2- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each of the Registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STERLING CHEMICALS HOLDINGS, INC. Date: July 26, 2002 By: /s/ DAVID G. ELKINS ------------------------------------- David G. Elkins, President STERLING CHEMICALS INC. Date: July 26, 2002 By: /s/ DAVID G. ELKINS ------------------------------------- David G. Elkins, President -3- EXHIBIT INDEX Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals Holdings, Inc. for May 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for May 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for May 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for May 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for May 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for May 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for May 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for May 2002. EX-99.1 3 h98536exv99w1.txt MONTHLY OPERATING REPORT FOR STERLING CHEM HOLDING EXHIBIT 99.1 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS HOLDINGS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37805-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: MAY YEAR: 2002
MONTH 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 - --------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ -- $ -- $ -- $ -- $ -- $ -- $ -- INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ -- $ (967) $(51,350) $ (957) $ (960) $(46,778) $(12,965) NET INCOME (LOSS) (MOR-6) $ 9,797 $(128,714) $(51,166) $ (775) $ (794) $(46,590) $(12,788) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $651,710 $ 553,291 $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $651,710 $ 553,291 $ -- $ -- $ -- $ -- $ -- (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***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 proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- 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 HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 14 6/19/02 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 6/19/02
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 MAY 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 $ 1,369 $ - $ 156 Trade accounts receivable, net - 76,214 85 2,736 Other Receivables - 685 - 2,695 Due from affiliates 1,205 24,502 13,777 - Inventories - 31,798 - 8,584 Prepaid expenses 33 3,400 - 28 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 137,968 13,862 14,199 Property, plant and equipment, net - 120,474 2,823 5,930 Deferred income taxes - - - - Investments-Third Party - 1,500 5,232 - Investments in Subs 35,060 94,735 - - Other assets 865 35,093 - 1,233 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 389,770 $ 21,917 $ 21,362 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 177 187,581 1,433 6,711 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 38,926 - 9,776 Unsecured debt 186,538 262,270 1,110 70,426 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 (1,046) (58,958) 4,040 (8,521) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,678) (509,798) 19,374 (138,576) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,678) (512,335) 19,374 (138,576) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 389,770 $ 21,917 $ 21,362 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 58 $ - $ - Trade accounts receivable, net - 2,454 873 4,425 Other Receivables - 4,397 - - Due from affiliates 3,301 56,857 966 8,588 Inventories - - 181 1,936 Prepaid expenses - - - 516 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,301 63,766 2,020 15,465 Property, plant and equipment, net - - - 41,949 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,570 3,233 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,871 $ 362,810 $ 3,539 $ 57,414 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 25,211 962 2,817 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 624 11,472 - - Unsecured debt 1,123 265,052 170 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 (382) 1,121 (736) (10,821) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 397 (6,077) 2,407 (7,746) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 397 (6,077) 2,407 (7,746) TOTAL LIABILITIES AND EQUITY $ 5,871 $ 362,810 $ 3,539 $ 57,414 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,754 Trade accounts receivable, net - 86,787 Other Receivables - 7,777 Due from affiliates (108,901) 295 Inventories - 42,499 Prepaid expenses - 3,977 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (108,901) 143,089 Property, plant and equipment, net - 171,176 Deferred income taxes - - Investments-Third Party - 6,732 Investments in Subs (381,672) 45,453 Other assets (1) 42,993 -------------------------------- TOTAL ASSETS $(490,574) $ 409,443 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,901) 180,066 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (10,400) 50,398 Unsecured debt (133,130) 715,902 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 - (75,303) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (856,947) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,484) TOTAL LIABILITIES AND EQUITY $(490,574) $ 409,443 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 6 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
--------------------------------------------------------------------------------- 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 --------------------------------------------------------------------------------- (revised) (revised) TRADE ACCOUNTS PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- ROYALTY AND REVENUE PAYABLE -- -- -- NOTES PAYABLE - INSURANCE -- -- -- TAX PAYABLE: -- -- -- Federal Payroll Taxes -- -- -- State Payroll & Sales -- -- -- Ad Valorem Taxes -- -- -- Other Taxes -- -- -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- 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) $ -- $ -- $ -- $ -- $ -- $ -- $ -- ==========================================================================================================================
*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 MAY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 70,934 $ 70,934 $ -- $ -- $ -- $ -- 31-60 687 687 -- -- -- -- 61-90 458 458 -- -- -- -- 91 + 28,145 28,145 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $100,224 $100,224 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MAY 31, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, MONTH HOLDINGS, INC. INC. ENERGY, INC. INC. ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 45,186,158 $ 185,170 $ 1,769,204 TOTAL COST OF REVENUES -- 37,495,451 185,170 1,831,716 GROSS PROFIT $ -- $ 7,690,707 $ -- $ (62,512) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 12,965 $ 1,075,324 $ -- $ 117,882 Insiders Compensation -- 78,911 -- -- Professional Fees -- 1,509,681 -- -- Other (Earnings in Joint Venture) -- 69,703 (69,703) -- TOTAL OPERATING EXPENSE $ 12,965 $ 2,733,619 $ (69,703) $ 117,882 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (12,965) $ 4,957,088 $ 69,703 $ (180,394) INTEREST EXPENSE (includes amort of debt fees) (177) 2,199,007 -- 614,434 DEPRECIATION -- 1,944,379 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (177) $ 4,143,386 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (12,788) $ 813,702 $ 69,703 $ (842,445) INCOME TAXES -- -- 18,000 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (12,788) $ 813,702 $ 51,703 $ (842,445) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP MONTH INT'L, INC. INC. CHEMICALS US, INC. ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,059,266 $ 332,686 TOTAL COST OF REVENUES -- 54,852 475,900 GROSS PROFIT $ 83,333 $ 1,004,414 $ (143,214) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,121 $ 254,365 $ (80,920) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,121 $ 254,365 $ (80,920) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 67,212 $ 750,049 $ (62,294) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,575 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,370 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,547 $ 103,679 $ (62,294) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,547 $ 103,679 $ (62,294) ============================================================================================================== STERLING PULP DEBTORS MONTH CHEMICALS, INC. ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,292,539 $ (83,333) $ 51,825,023 TOTAL COST OF REVENUES 1,981,822 (83,333) 41,941,578 GROSS PROFIT $ 1,310,717 $ -- $ 9,883,445 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,086 $ (558,861) 1,461,962 Insiders Compensation -- -- 78,911 Professional Fees -- -- 1,509,681 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,086 $ (558,861) $ 3,050,554 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 685,631 $ 558,861 6,832,891 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,570,365 DEPRECIATION 326,099 -- 2,826,890 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,099 $ 558,861 $ 6,397,255 ================================================================================================================= NET INCOME BEFORE TAXES $ 359,532 $ -- $ 435,636 INCOME TAXES -- -- 18,000 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 359,532 $ -- $ 417,636 =================================================================================================================
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 HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
CASH RECEIPTS AND FILING TO DISBURSEMENTS Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 DATE - ----------------- --------- --------- --------- ------- ------- -------- --------- ---------- 1. CASH-BEGINNING OF MONTH 1,365,144 723,230 170,226 170,410 170,592 170,758 170,946 1,362,081 ========= ========= ========= ======= ======= ======= ========= ========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- -- -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 9,797 286 184 182 166 188 177 14,043 --------- --------- -------- ------- ------- ------- --------- ---------- TOTAL RECEIPTS 9,797 286 184 182 166 188 177 14,043 --------- --------- -------- ------- ------- ------- --------- ---------- (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 -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES -- -- -- -- -- -- -- -- 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) -- -- -- -- -- -- -- -- --------- --------- -------- ------- ------- ------- --------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- -- -- -- -- ========= ========= ======== ======= ======= ======= ========= ========== 19. PROFESSIONAL FEES 651,710 553,291 -- -- -- -- -- 1,205,001 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- --------- --------- -------- ------- ------- ------- --------- ---------- TOTAL DISBURSEMENTS 651,710 553,291 -- -- -- -- -- 1,205,001 ========= ========= ======== ======= ======= ======= ========= ========== 22. NET CASH FLOW (641,913) (553,005) 184 182 166 188 177 (1,190,958) 23. CASH - END OF MONTH (MOR-2) 723,230 170,226 170,410 170,592 170,758 170,946 171,123 171,123
MOR-7 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 DATE ----------------------- ------ ------ ------ ------ ------ -------- ------ --------- 6. OTHER RECEIPTS: Interest Income 9,797 286 184 182 166 188 177 14,043 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous -- -- -- -- -- -- -- -- Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- ------ ------ ------ ------ ------ -------- ------ -------- TOTAL OTHER RECEIPTS 9,797 286 184 182 166 188 177 14,043 ====== ====== ====== ====== ====== ======== ====== ======== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures -- -- -- -- -- -- -- -- Revenue & Royalties -- -- -- -- -- -- -- -- Interest Payment -- -- -- -- -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- -- -- -- -- Severance tax -- -- -- -- -- -- -- -- Pre-petition checks voided in -- -- -- -- -- -- -- -- current period ------ ------ ------ ------ ------ -------- ------ -------- TOTAL OTHER DISBURSEMENTS -- -- -- -- -- -- -- -- ====== ====== ====== ====== ====== ======== ====== ========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS 00100547125 00100535021 Debtor - ----------------- ----------- ------------ ------------ 1. CASH-BEGINNING OF MONTH -- 170,946 170,946 =========== ============ ============ RECEIPTS: 2. CASH SALES -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- 5. SALE OF ASSETS -- -- -- 6. OTHER (attach list) -- 177 177 ----------- ------------ ------------ TOTAL RECEIPTS -- 177 177 ----------- ------------ ------------ (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A =========== ============ ============ DISBURSEMENTS: 7. NET PAYROLL -- -- -- 8. PAYROLL TAXES PAID -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- 11. UTILITIES -- -- -- 12. INSURANCE -- -- -- 13. INVENTORY PURCHASES -- -- -- 14. VEHICLE EXPENSES -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- 18. OTHER (attach list) -- -- -- ----------- ------------ ------------ TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- =========== ============ ============ 19. PROFESSIONAL FEES -- -- -- 20. U.S. TRUSTEE FEES -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ----------- ------------ ------------ TOTAL DISBURSEMENTS -- -- -- =========== ============ ============ 22. NET CASH FLOW -- 177 177 23. CASH - END OF MONTH (MOR-2) -- 171,123 171,123
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
OTHER CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS: 00100547125 00100535021 Debtor - ----------------------- ----------- ----------- -------- 6. OTHER RECEIPTS: Interest Income -- 177 177 401(k) Plan Refund -- -- -- Cobra Insurance Payment -- -- -- Miscellaneous -- -- -- Royalty Owners Trust Account -- -- -- Emission Credits -- -- -- -- -- -- -- -- ----------- ----------- -------- TOTAL OTHER RECEIPTS -- 177 177 =========== =========== ======== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures -- -- -- Revenue & Royalties Interest Payment -- -- -- Restricted Cash - Bond Funding -- -- -- Severance tax Pre-petition checks voided in current period -- -- -- ----------- ----------- -------- TOTAL OTHER DISBURSEMENTS -- -- -- =========== =========== ========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals Holdings, Inc. CASE NUMBER: 01-37805-H-11 CASH ACCOUNT RECONCILIATION MONTH OF MAY 2002 --------
Closed BANK NAME Chase Bk of TX Chase Bk of TX ACCOUNT NUMBER 00100547125 0010535021 ACCOUNT TYPE Concentration Concentration TOTAL - -------------- ------------- -------------- ---------- BANK BALANCE $ -- $ 171,123 $ 171,123 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- ADJUSTED BANK BALANCE $ -- $ 171,123 $ -- $ -- $ -- $ -- $ -- $ -- $ 171,123 ============= ============== ====== ====== ====== ====== ====== ====== ========== BEGINNING CASH - PER BOOKS $ -- $ 170,946 $ 170,946 RECEIPTS 177 177 TRANSFERS BETWEEN ACCOUNTS -- (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS -- -- ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- ENDING CASH - PER BOOKS $ -- $ 171,123 $ -- $ -- $ -- $ -- $ -- $ -- $ 171,123 ============= ============== ====== ====== ====== ====== ====== ====== ==========
MOR-8 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-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) Nov-2001 Dec-2001 Jan-2002 Feb-02 Mar-02 Apr-2002 May-2002 DATE - --------------------------------------- -------- -------- -------- -------- ------- -------- -------- ---------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- -------- -------- -------- -------- ------- -------- -------- ---------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======= ======== ======== ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Nov-2001 Dec-2001 Jan-2002 Feb-02 Mar-02 Apr-2002 May-2002 DATE - ------------------------- -------- ----------- -------- ------ ------- -------- -------- ----------- 1. Skadden, Arps, Slate, Meagher & Flom LLP $ -- $418,494.62 $553,291.25 $ -- $ -- $ -- $ -- $971,785.87 2. Arthur Andersen -- 233,215.40 -- -- -- -- -- 233,215 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- -------- ----------- ----------- ------ ------ ------- ------ ----------- TOTAL PROFESSIONALS (MOR-1) $ -- $ 651,710 $ 553,291 $ -- $ -- $ -- $ -- $ 1,205,001 ======== =========== =========== ====== ====== ======= ====== ===========
(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 EX-99.2 4 h98536exv99w2.txt MONTHLY OPERATING REPORT FOR STERLING CHEMICALS 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: MAY YEAR: 2002
11/30/01 12/31/01 MONTH Revised Revised - --------------------------------------------------------------------- REVENUES (MOR-6) $ 21,898,981 $ 18,571,799 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (4,402,886) $ (1,583,651) NET INCOME (LOSS) (MOR-6) $ (8,543,837) $ (5,648,707) PAYMENTS TO INSIDERS (MOR-9) $ 106,743 $ 204,995 PAYMENTS TO PROFESSIONALS (MOR-9) $ 802,884 $ 683,788 TOTAL DISBURSEMENTS (MOR-7)(1) $ 48,059,877 $ 46,405,192 (1) Excludes intercompany transfers as follows: $ 16,841,776 $ 16,315,773 1/31/02 2/28/02 3/31/02 4/30/02 MONTH Revised Revised Revised Revised 5/31/02 - ---------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 20,053,870 $ 20,096,849 $ 21,923,335 $ 42,567,625 $ 45,186,158 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (2,798,067) $ (2,749,269) $ (148,300) $ 5,024,220 $ 4,957,088 NET INCOME (LOSS) (MOR-6) $ (7,180,158) $ (6,872,689) $ (4,363,757) $ 495,693 $ 813,702 PAYMENTS TO INSIDERS (MOR-9) $ 142,597 $ 116,429 $ 150,683 $ 494,281 $ 78,911 PAYMENTS TO PROFESSIONALS (MOR-9) $ 1,238,773 $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 1,014,508 TOTAL DISBURSEMENTS (MOR-7)(1) $ 51,372,937 $ 45,245,622 $ 56,865,534 $ 57,893,073 $ 69,069,844 (1) Excludes intercompany transfers as follows: $ 13,719,923 $ 18,261,420 $ 23,396,865 $ 20,186,176 $ 16,157,239
***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 proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- 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 6/19/02 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 6/19/02
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 CHEMICALS, INC. CASE #01-37806-H4-11 City of Texas City 7,734.35 Galveston County Tax Assessor 18,775.70 Texas City ISD 39,299.05 ------------- TOTAL $ 65,809.10 =============
(1) ALL PREPETITION PAYMENTS MADE IN MAY WERE PURSUANT TO COURT APPROVAL OF THESE PAYMENTS RELATED TO STATE TAXES. STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS) CONSOLIDATING BALANCE SHEET FOR THE PERIOD ENDED MAY 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 $ 1,369 $ - $ 156 Trade accounts receivable, net - 76,214 85 2,736 Other Receivables - 685 - 2,695 Due from affiliates 1,205 24,502 13,777 - Inventories - 31,798 - 8,584 Prepaid expenses 33 3,400 - 28 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 137,968 13,862 14,199 Property, plant and equipment, net - 120,474 2,823 5,930 Deferred income taxes - - - - Investments-Third Party - 1,500 5,232 - Investments in Subs 35,060 94,735 - - Other assets 865 35,093 - 1,233 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 389,770 $ 21,917 $ 21,362 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 177 187,581 1,433 6,711 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 38,926 - 9,776 Unsecured debt 186,538 262,270 1,110 70,426 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 (1,046) (58,958) 4,040 (8,521) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,678) (509,798) 19,374 (138,576) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,678) (512,335) 19,374 (138,576) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 389,770 $ 21,917 $ 21,362 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 58 $ - $ - Trade accounts receivable, net - 2,454 873 4,425 Other Receivables - 4,397 - - Due from affiliates 3,301 56,857 966 8,588 Inventories - - 181 1,936 Prepaid expenses - - - 516 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,301 63,766 2,020 15,465 Property, plant and equipment, net - - - 41,949 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,570 3,233 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,871 $ 362,810 $ 3,539 $ 57,414 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 25,211 962 2,817 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 624 11,472 - - Unsecured debt 1,123 265,052 170 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 (382) 1,121 (736) (10,821) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 397 (6,077) 2,407 (7,746) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 397 (6,077) 2,407 (7,746) TOTAL LIABILITIES AND EQUITY $ 5,871 $ 362,810 $ 3,539 $ 57,414 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,754 Trade accounts receivable, net - 86,787 Other Receivables - 7,777 Due from affiliates (108,901) 295 Inventories - 42,499 Prepaid expenses - 3,977 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (108,901) 143,089 Property, plant and equipment, net - 171,176 Deferred income taxes - - Investments-Third Party - 6,732 Investments in Subs (381,672) 45,453 Other assets (1) 42,993 -------------------------------- TOTAL ASSETS $(490,574) $ 409,443 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,901) 180,066 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (10,400) 50,398 Unsecured debt (133,130) 715,902 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 - (75,303) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (856,947) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,484) TOTAL LIABILITIES AND EQUITY $(490,574) $ 409,443 ================================
* 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
---------------------------------------------------------------------------------------- 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 (revised) ---------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 35,921 $ 25,602 $ 43,566 $ 43,581 $ 53,511 $ 61,483 $ 68,952 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- -- TAX PAYABLE: -- -- -- -- -- Federal Payroll Taxes 260 -- -- 8 8 98 State Payroll & Sales 39 178 231 364 437 405 409 Ad Valorem Taxes -- -- -- -- -- -- Other Taxes 2,800 3,383 3,901 4,527 5,162 5,795 4,408 TOTAL TAXES PAYABLE $ 3,099 $ 3,561 $ 4,132 $ 4,891 $ 5,607 $ 6,208 $ 4,915 SECURED DEBT POST-PETITION 49,084 51,301 51,346 51,127 56,066 78,668 74,598 ACCRUED INTEREST PAYABLE 469 436 370 553 670 752 518 *ACCRUED PROFESSIONAL FEES: 4,798 4,714 5,236 5,587 5,989 6,106 6,427 OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 22,520 31,422 37,458 31,736 31,003 30,498 32,171 2. Lease Operating Expenses/Capital -- -- -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 115,891 $ 117,036 $ 142,108 $137,475 $ 152,846 $ 183,715 $ 187,581 ================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH MAY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 70,934 $ 70,934 $ -- $ -- $ -- $ -- 31-60 687 687 -- -- -- -- 61-90 458 458 -- -- -- -- 91 + 28,145 28,145 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $100,224 $100,224 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MAY 31, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, MONTH HOLDINGS, INC. INC. ENERGY, INC. INC. ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 45,186,158 $ 185,170 $ 1,769,204 TOTAL COST OF REVENUES -- 37,495,451 185,170 1,831,716 GROSS PROFIT $ -- $ 7,690,707 $ -- $ (62,512) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 12,965 $ 1,075,324 $ -- $ 117,882 Insiders Compensation -- 78,911 -- -- Professional Fees -- 1,509,681 -- -- Other (Earnings in Joint Venture) -- 69,703 (69,703) -- TOTAL OPERATING EXPENSE $ 12,965 $ 2,733,619 $ (69,703) $ 117,882 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (12,965) $ 4,957,088 $ 69,703 $ (180,394) INTEREST EXPENSE (includes amort of debt fees) (177) 2,199,007 -- 614,434 DEPRECIATION -- 1,944,379 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (177) $ 4,143,386 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (12,788) $ 813,702 $ 69,703 $ (842,445) INCOME TAXES -- -- 18,000 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (12,788) $ 813,702 $ 51,703 $ (842,445) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP MONTH INT'L, INC. INC. CHEMICALS US, INC. ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,059,266 $ 332,686 TOTAL COST OF REVENUES -- 54,852 475,900 GROSS PROFIT $ 83,333 $ 1,004,414 $ (143,214) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,121 $ 254,365 $ (80,920) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,121 $ 254,365 $ (80,920) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 67,212 $ 750,049 $ (62,294) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,575 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,370 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,547 $ 103,679 $ (62,294) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,547 $ 103,679 $ (62,294) ============================================================================================================== STERLING PULP DEBTORS MONTH CHEMICALS, INC. ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,292,539 $ (83,333) $ 51,825,023 TOTAL COST OF REVENUES 1,981,822 (83,333) 41,941,578 GROSS PROFIT $ 1,310,717 $ -- $ 9,883,445 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,086 $ (558,861) 1,461,962 Insiders Compensation -- -- 78,911 Professional Fees -- -- 1,509,681 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,086 $ (558,861) $ 3,050,554 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 685,631 $ 558,861 6,832,891 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,570,365 DEPRECIATION 326,099 -- 2,826,890 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,099 $ 558,861 $ 6,397,255 ================================================================================================================= NET INCOME BEFORE TAXES $ 359,532 $ -- $ 435,636 INCOME TAXES -- -- 18,000 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 359,532 $ -- $ 417,636 =================================================================================================================
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 DISBURSEMENTS Nov-01 Dec-01 Jan-02 Feb-02 ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH 159,499 (421,404) (256,194) 498,098 ============ ============ ============ ============ RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 20,886,265 22,270,996 24,602,303 20,717,983 4. LOANS & ADVANCES - CIT REVOLVER 31,300,000 29,200,000 31,600,000 26,900,000 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 12,134,485 11,415,178 9,644,850 13,860,068 ------------ ------------ ------------ ------------ TOTAL RECEIPTS 64,320,750 62,886,174 65,847,152 61,478,051 ------------ ------------ ------------ ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A ============ ============ ============ ============ DISBURSEMENTS: 7. NET PAYROLL 2,759,985 1,932,984 1,297,213 1,930,462 8. PAYROLL TAXES PAID 443,402 870,019 974,973 972,750 9. SALES, USE & OTHER TAXES PAID 55,177 50,776 57,123 -- 10.SECURED/RENTAL/LEASES 179,910 184,920 161,222 154,571 11.UTILITIES 3,737,135 4,230,558 2,765,343 2,158,233 12.INSURANCE 425,842 456,145 728,204 589,057 13.INVENTORY PURCHASES 12,485,921 8,921,056 11,876,414 2,984,285 14.VEHICLE EXPENSES -- -- -- -- 15.TRAVEL & ENTERTAINMENT 53,052 64,095 60,079 63,635 16.REPAIRS, MAINTENANCE & SUPPLIES 1,100,361 1,085,130 1,487,951 7,400,962 17.ADMINISTRATIVE & SELLING 3,136,392 3,142,158 2,804,552 2,442,379 18.OTHER (attach list) 39,721,594 41,099,335 41,641,012 43,639,825 TOTAL DISBURSEMENTS FROM OPERATIONS 64,098,769 62,037,177 63,854,086 62,336,159 19.PROFESSIONAL FEES 802,884 683,788 1,185,274 1,045,883 20.U.S. TRUSTEE FEES -- -- 53,500 -- 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- -- 125,000 ------------ ------------ ------------ ------------ TOTAL DISBURSEMENTS 64,901,653 62,720,965 65,092,860 63,507,042 ============ ============ ============ ============ 22.NET CASH FLOW (580,903) 165,210 754,292 (2,028,991) 23.CASH - END OF MONTH (MOR-2) (421,404) (256,194) 498,098 (1,530,893) per MOR-7 (421,403.88) (256,194.38) 498,097.76 (1,530,893.34) per 211 trial balance 527,547.60 622,716.13 1,983,218.51 986,980.26 -------------- -------------- -------------- -------------- difference 948,951.48 878,910.51 1,485,120.75 2,517,873.60 g/l acct 10123 - not a good account, s/b zero 794.70 794.70 794.70 794.70 g/l acct 10131 - account was closed before filing, bal s/b zero 4,029.99 4,029.99 4,029.99 4,029.99 g/l acct 10199 - cash overdraft reclass of outstanding checks 944,126.79 874,085.82 1,480,296.06 2,513,048.91 -------------- -------------- -------------- -------------- reconciled difference 948,951.48 878,910.51 1,485,120.75 2,517,873.60 CASH RECEIPTS AND FILING TO DISBURSEMENTS Mar-02 Apr-02 May-02 DATE ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH (1,530,893) (605,842) 1,432,341 9,346,546 ============ ============ ============ ============ RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 25,478,506 17,926,575 34,807,911 251,940,298 4. LOANS & ADVANCES - CIT REVOLVER 36,300,000 46,100,000 37,400,000 336,800,000 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 19,408,945 16,090,857 11,363,818 133,439,910 ------------ ------------ ------------ ------------ TOTAL RECEIPTS 81,187,451 80,117,432 83,571,729 722,180,208 ------------ ------------ ------------ ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A ============ ============ ============ ============ DISBURSEMENTS: 7. NET PAYROLL 2,601,421 1,983,856 1,609,373 20,553,278 8. PAYROLL TAXES PAID 1,053,588 932,205 936,861 9,308,698 9. SALES, USE & OTHER TAXES PAID 1,404,405 1,650,149 1,456,271 6,233,390 10.SECURED/RENTAL/LEASES 99,905 30,705 101,829 1,555,469 11.UTILITIES 1,150,288 6,922,372 3,817,800 35,021,254 12.INSURANCE 410,554 50,625 15,583 5,428,025 13.INVENTORY PURCHASES 10,861,846 17,691,587 16,201,310 116,150,947 14.VEHICLE EXPENSES -- -- -- -- 15.TRAVEL & ENTERTAINMENT 36,818 65,732 72,716 535,439 16.REPAIRS, MAINTENANCE & SUPPLIES 4,837,494 3,235,006 1,896,650 25,004,481 17.ADMINISTRATIVE & SELLING 3,841,855 4,503,340 4,089,807 30,156,350 18.OTHER (attach list) 52,706,777 39,441,420 54,014,374 472,642,173 TOTAL DISBURSEMENTS FROM OPERATIONS 79,004,950 76,506,997 84,212,575 722,589,504 19.PROFESSIONAL FEES 1,257,449 1,525,502 1,014,508 8,894,762 20.U.S. TRUSTEE FEES -- 46,750 -- 140,500 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- -- 125,000 ------------ ------------ ------------ ------------ TOTAL DISBURSEMENTS 80,262,399 78,079,249 85,227,083 731,749,766 ============ ============ ============ ============ 22.NET CASH FLOW 925,052 2,038,183 (1,655,353) (9,569,558) 23.CASH - END OF MONTH (MOR-2) (605,842) 1,432,341 (223,012) (223,012) per MOR-7 (605,841.51) 1,432,341.16 (223,012.32) per 211 trial balance 636,425.59 1,865,999.23 1,368,935.72 -------------- -------------- -------------- difference 1,242,267.10 433,658.07 1,591,948.04 g/l acct 10123 - not a good account, s/b zero 794.70 794.70 0.00 g/l acct 10131 - account was closed before filing, bal s/b zero 4,029.99 4,029.99 0.00 g/l acct 10199 - cash overdraft reclass of outstanding checks 1,237,442.41 428,833.38 1,591,948.04 -------------- -------------- -------------- reconciled difference 1,242,267.10 433,658.07 1,591,948.04
MOR-7 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 DATE ---------- ---------- ---------- ---------- ------------ ---------- ---------- ----------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- 80,302 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous 181,336 146,500 100,833 223,221 131,124 195,444 128,178 2,734,865 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Account Transfers 9,047,528 10,348,106 9,120,571 13,636,846 17,715,686 15,239,518 11,235,640 122,855,075 Intercompany Transfers 2,905,621 920,573 423,445 -- 1,562,134 655,895 -- 7,769,668 ---------- ---------- ---------- ---------- ------------ ---------- ---------- ----------- TOTAL OTHER RECEIPTS 12,134,485 11,415,178 9,644,850 13,860,068 19,408,945 16,090,857 11,363,818 133,439,910 ========== ========== ========== ========== ============ ========== ========== =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures 297,523 558,388 1,491,633 1,841,654 1,418,900 (581,465) 598,552 6,543,250 Revenue & Royalties -- -- -- - -- -- -- -- Interest Payment -- -- -- - -- -- -- 97,161 Employee Benefits 1,259,446 1,276,424 2,711,036 1,602,513 2,285,842 2,492,292 1,544,520 19,242,523 Severance tax -- -- -- - -- -- -- -- Pre-petition checks voided in current period -- -- -- - -- -- -- (30,000) Account Transfers 9,047,528 10,348,106 9,120,571 13,636,846 17,715,686 15,239,518 11,235,640 122,855,075 CIT Revolver Payments 21,322,848 22,948,750 23,718,420 21,934,238 25,605,169 17,344,416 35,714,063 269,529,746 Intercompany Transfers 7,794,248 5,967,667 4,599,352 4,624,574 5,681,179 4,946,658 4,921,599 54,404,417 ---------- ---------- ---------- ---------- ------------ ---------- ---------- ----------- TOTAL OTHER DISBURSEMENTS 39,721,594 41,099,335 41,641,012 43,639,825 52,706,777 39,441,420 54,014,374 472,642,173 ========== ========== ========== ========== ============ ========== ========== ===========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS 00101824317 00103316882 103405743 6301810002508 ----------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH 782,068 116 1,859,787 (1,211,018) =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 32,214,482 4. LOANS & ADVANCES - CIT REVOLVER 37,400,000 5. SALE OF ASSETS 6. OTHER (attach list) -- 500,130 2,050,000 8,211,042 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 32,214,482 37,900,130 2,050,000 8,211,042 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL 1,609,373 -- 8. PAYROLL TAXES PAID 936,861 9. SALES, USE & OTHER TAXES PAID 52,323 1,403,948 10. SECURED/RENTAL/LEASES 101,829 11. UTILITIES 3,817,800 12. INSURANCE 4,879 10,705 13. INVENTORY PURCHASES 16,020,814 180,496 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 72,716 16. REPAIRS, MAINTENANCE & SUPPLIES 1,896,650 17. ADMINISTRATIVE & SELLING 787,888 3,301,919 18. OTHER (attach list) 32,996,451 17,031,390 -- 794,453 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 32,996,451 37,715,095 2,546,234 7,762,716 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 1,014,508 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 32,996,451 37,715,095 2,546,234 8,777,224 =============== =============== =============== =============== 22. NET CASH FLOW (781,968) 185,035 (496,234) (566,181) 23. CASH - END OF MONTH (MOR-2) 100 185,151 1,363,554 (1,777,199) CASH RECEIPTS AND Chase Chase Bank One Total DISBURSEMENTS 6301810036508 6301810028508 5561833 Debtor ----------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH -- -- 1,387 1,432,341 =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,593,429 34,807,911 4. LOANS & ADVANCES - CIT REVOLVER 37,400,000 5. SALE OF ASSETS -- 6. OTHER (attach list) 467,072 7,396 128,178 11,363,818 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 467,072 7,396 2,721,607 83,571,729 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- -- -- 1,609,373 8. PAYROLL TAXES PAID 936,861 9. SALES, USE & OTHER TAXES PAID 1,456,271 10. SECURED/RENTAL/LEASES 101,829 11. UTILITIES 3,817,800 12. INSURANCE 15,583 13. INVENTORY PURCHASES 16,201,310 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT 72,716 16. REPAIRS, MAINTENANCE & SUPPLIES 1,896,650 17. ADMINISTRATIVE & SELLING 4,089,807 18. OTHER (attach list) 467,072 7,396 2,717,612 54,014,374 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 467,072 7,396 2,717,612 84,212,575 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 1,014,508 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 467,072 7,396 2,717,612 85,227,083 =============== =============== =============== =============== 22. NET CASH FLOW -- -- 3,995 (1,655,353) 23. CASH - END OF MONTH (MOR-2) -- -- 5,382 (223,012)
MOR-7 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 500,130 2,050,000 8,211,042 Intercompany Transfers ----------- ---------- ---------- --------- ---------- TOTAL OTHER RECEIPTS -- -- 500,130 2,050,000 8,211,042 =========== ========== ========== ========= ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures 598,552 Revenue & Royalties Interest Payment Employee Benefits 874,151 195,901 Severance tax Pre-petition checks voided in current period Account Transfers 11,235,640 CIT Revolver Payments 32,996,451 -- Intercompany Transfers 4,921,599 ----------- ---------- ---------- --------- ---------- TOTAL OTHER DISBURSEMENTS -- 32,996,451 17,031,390 -- 794,453 =========== ========== ========== ========= ========== 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 128,178 128,178 Royalty Owners Trust Account -- Emission Credits -- Account Transfers 467,072 7,396 11,235,640 Intercompany Transfers -- --------- --------- ------------ ---------- ---------- TOTAL OTHER RECEIPTS 467,072 7,396 -- 128,178 11,363,818 ========= ========= ============ ========== ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- Workover Expense -- Capital Expenditures 598,552 Revenue & Royalties -- Interest Payment -- Employee Benefits 467,072 7,396 1,544,520 Severance tax -- Pre-petition checks voided in current period -- Account Transfers 11,235,640 CIT Revolver Payments 2,717,612 35,714,063 Intercompany Transfers 4,921,599 --------- --------- ------------ ---------- ---------- TOTAL OTHER DISBURSEMENTS 467,072 7,396 -- 2,717,612 54,014,374 ========= ========= ============ ========== ==========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H-11 CASH ACCOUNT RECONCILIATION MONTH OF MAY 2002 ---------------------------------
BANK NAME Chase Bk of TX Chase Bk of TX Chase Bk of TX Chase Bk of DE ACCOUNT NUMBER 00101824317 00103316882 00103405743 6301810036508 - -------------- ACCOUNT TYPE AR Wires Concentration Payroll Contr. Disb. - -------------- --------------- --------------- --------------- --------------- BANK BALANCE $ 100 $ 185,151 $ 176,997 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS (1,777,199) OTHER 1 1,186,556 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ 100 $ 185,152 $ 1,363,553 $ (1,777,199) =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ 782,068 $ 117 $ 1,859,787 $ (1,211,017) RECEIPTS 32,214,482 37,400,000 TRANSFERS BETWEEN ACCOUNTS (15,657,109) 2,050,000 8,211,042 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (32,996,450) (21,557,856) (2,546,234) (8,777,224) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ 100 $ 185,152 $ 1,363,553 $ (1,777,199) =============== =============== =============== =============== BANK NAME Chase Bk of Del Chase Bk of Del Bank One ACCOUNT NUMBER 6301810036508 6301810028508 5561833 - -------------- ACCOUNT TYPE Sal Ben Disb Flex Ben Disb Lockbox TOTAL - -------------- --------------- --------------- --------------- --------------- BANK BALANCE $ -- $ -- $ 6,274 $ 368,522 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS (1,777,199) OTHER (892) 1,185,665 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ -- $ 5,382 $ (223,012) =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ -- $ 1,387 $ 1,432,342 RECEIPTS 2,721,607 72,336,089 TRANSFERS BETWEEN ACCOUNTS 467,072 7,396 (4,921,599) (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (467,072) (7,396) (2,717,612) (69,069,844) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ -- $ 5,382 $ (223,012) =============== =============== =============== ===============
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) Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 DATE - --------------------------------------- --------- --------- --------- -------- -------- -------- ---------- ---------- 1. Frank Diassi/Chairman of Board/Salary $ 31,250 $ 31,250 $ -- $ -- $ -- $ 62,500 2. Frank Diassi/Chairman of Board/Bonus -- -- -- 3. Frank Diassi/Chairman of Board/Expenses -- -- -- -- -- 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 30,333 30,333 30,333 207,667 6. David Elkins/President/Bonus -- 21,875 -- 22,750 136,500 -- 181,125 7. David Elkins/President/Expenses -- 2,035 3,378 4,601 -- 5,115 -- 15,129 8. David Elkins/President/Life Insurance 2,184 -- -- 2,184 9. Richard Crump/Exec VP Opers/Salary 25,000 25,000 28,636 27,500 27,917 27,917 27,917 189,887 10. Richard Crump/Exec VP Opers/Bonus -- 18,750 1,875 20,938 125,625 -- 167,188 11. Richard Crump/Exec VP Opers/Expense 2,331 531 4,453 5,404 4,610 6,728 -- 24,057 12. Paul Vanderhoven/VP Finance & CFO/Salary 16,667 16,667 16,667 16,667 18,333 18,333 18,333 121,667 13. Paul Vanderhoven/VP Finance & CFO/Bonus -- 10,000 -- 11,000 79,200 -- 100,200 14. Paul Vanderhoven/VP Finance & CFO/Expense -- 2,199 4,509 4,629 2,474 6,402 -- 20,213 15. Robert Roten/Former Pres & Board Member/SERP 2,328 2,328 2,328 2,328 2,328 2,328 2,328 16,296 16. Robert Roten/Former Pres & Board Member/Consulting fee -- -- -- 10,000 10,000 10,000 -- 30,000 17. Robert Roten/Former Pres & Board Member/BOD fee -- 15,150 -- -- 13,750 -- 28,900 18. Rolf Towe/Board Member/BOD fees -- 10,850 -- -- 9,650 -- 20,500 19. Rolf Towe/Board Member/Expenses -- -- -- 16,133 -- -- 16,133 20. Hunter Nelson/Board Member -- 11,150 -- -- 10,350 -- 21,500 21. Frank Hevrdejs/Board Member -- 12,250 -- -- 12,050 -- 24,300 --------- --------- --------- -------- --------- -------- ---------- ---------- TOTAL INSIDERS (MOR-1) $ 106,743 $ 204,995 $ 142,597 $116,429 $ 150,683 $494,281 $ 78,911 $1,294,639 ========= ========= ========= ======== ========= ======== ========== ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 DATE - --------------------------- --------- --------- ---------- ------------ ----------- ----------- ----------- ----------- 1. Logan & Company, Inc. $ 65,978 $ 30,272 $ 9,958.00 $ 15,624.27 $ 23,247 $ 3,541 $ 6,645.54 $ 155,266 2. Andrews & Kurth LLP -- 210,726 139,340 128,643.28 213,187 132,819 256,170.65 1,080,887 3. US Trustee -- -- 53,500 -- -- 46,750 -- 100,250 4. Skadden, Arps, Slate, Meagher & Flom LLP -- -- 293,229 466,138.76 634,706 321,403 406,542.75 2,122,020 5. Akin Gump Strauss 126,980 231,124 -- 35,089.74 120,257 78,728 81,093.82 673,273 6. Arthur Andersen 134,935 31,792 115,041 22,556.70 -- 95,421 70,316.52 470,062 7. Lazard Freres & Co. LLC 268,613 -- -- 284,550.16 153,356 295,856 138,638.86 1,141,014 8. Baker & Botts 154,797 132,523 111,985 46,197.50 32,861 66,007 30,965.11 575,335 9. Groom Law Group 11,331 4,587 10,078 9,773.24 9,738 23,879 10,670.30 80,056 10. Nexant, Inc. 40,250 42,764 8,399 37,309.09 16,416 9,595 13,464.59 168,199 11. Greenhill & Co. 497,243 -- 53,680 498,253 -- 1,049,176 --------- ---------- ---------- ------------ ----------- ----------- ----------- ----------- TOTAL PROFESSIONALS (MOR-1) $ 802,884 $ 683,788 $1,238,773 $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 1,014,508 $ 7,615,537 ========= ========== ========== ============ =========== =========== =========== ===========
(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 EX-99.3 5 h98536exv99w3.txt MONTHLY OPERATING REPORT FOR STERLING CHEM ENERGY EXHIBIT 99.3 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS ENERGY, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37807-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: MAY YEAR: 2002
MONTH 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 (revised) (revised) - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 179,733 $ 179,201 $ 302,130 $ 262,068 $ 192,124 $ 193,956 $ 185,170 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 550,328 $ 593,727 $ 464,670 $ 43,425 $ (61,716) $ 15,879 $ 69,703 NET INCOME (LOSS) (MOR-6) $ 521,459 $ 562,547 $ 439,688 $ 38,020 $ (54,923) $ 14,278 $ 51,703 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $1,569,319 $1,865,793 $1,583,667 $1,560,614 $1,604,507 $ 914,795 $1,353,466 (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***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 proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- 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 ENERGY, INC. CASE NUMBER: 01-37807-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 14 6/19/02 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 6/19/02
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 MAY 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 $ 1,369 $ - $ 156 Trade accounts receivable, net - 76,214 85 2,736 Other Receivables - 685 - 2,695 Due from affiliates 1,205 24,502 13,777 - Inventories - 31,798 - 8,584 Prepaid expenses 33 3,400 - 28 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 137,968 13,862 14,199 Property, plant and equipment, net - 120,474 2,823 5,930 Deferred income taxes - - - - Investments-Third Party - 1,500 5,232 - Investments in Subs 35,060 94,735 - - Other assets 865 35,093 - 1,233 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 389,770 $ 21,917 $ 21,362 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 177 187,581 1,433 6,711 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 38,926 - 9,776 Unsecured debt 186,538 262,270 1,110 70,426 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 (1,046) (58,958) 4,040 (8,521) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,678) (509,798) 19,374 (138,576) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,678) (512,335) 19,374 (138,576) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 389,770 $ 21,917 $ 21,362 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 58 $ - $ - Trade accounts receivable, net - 2,454 873 4,425 Other Receivables - 4,397 - - Due from affiliates 3,301 56,857 966 8,588 Inventories - - 181 1,936 Prepaid expenses - - - 516 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,301 63,766 2,020 15,465 Property, plant and equipment, net - - - 41,949 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,570 3,233 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,871 $ 362,810 $ 3,539 $ 57,414 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 25,211 962 2,817 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 624 11,472 - - Unsecured debt 1,123 265,052 170 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 (382) 1,121 (736) (10,821) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 397 (6,077) 2,407 (7,746) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 397 (6,077) 2,407 (7,746) TOTAL LIABILITIES AND EQUITY $ 5,871 $ 362,810 $ 3,539 $ 57,414 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,754 Trade accounts receivable, net - 86,787 Other Receivables - 7,777 Due from affiliates (108,901) 295 Inventories - 42,499 Prepaid expenses - 3,977 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (108,901) 143,089 Property, plant and equipment, net - 171,176 Deferred income taxes - - Investments-Third Party - 6,732 Investments in Subs (381,672) 45,453 Other assets (1) 42,993 -------------------------------- TOTAL ASSETS $(490,574) $ 409,443 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,901) 180,066 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (10,400) 50,398 Unsecured debt (133,130) 715,902 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 - (75,303) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (856,947) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,484) TOTAL LIABILITIES AND EQUITY $(490,574) $ 409,443 ================================
* 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 ENERGY, INC. CASE NUMBER: 01-37807-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
-------------------------------------------------------------------------------------- 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 -------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 1,175 $ 1,719 $ 1,702 $ 754 $ 1,057 $ 1,493 $ 1,433 ROYALTY AND REVENUE PAYABLE -- -- NOTES PAYABLE - INSURANCE -- -- TAX PAYABLE: -- -- Federal Payroll Taxes -- -- State Payroll & Sales -- -- Ad Valorem Taxes -- -- Other Taxes -- -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- 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) $ 1,175 $ 1,719 $ 1,702 $ 754 $ 1,057 $ 1,493 $ 1,433 ==============================================================================================================================
*Payment Requires Court Approval. MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH MAY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 70,934 $ 70,934 $ -- $ -- $ -- $ -- 31-60 687 687 -- -- -- -- 61-90 458 458 -- -- -- -- 91 + 28,145 28,145 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $100,224 $100,224 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MAY 31, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, MONTH HOLDINGS, INC. INC. ENERGY, INC. INC. ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 45,186,158 $ 185,170 $ 1,769,204 TOTAL COST OF REVENUES -- 37,495,451 185,170 1,831,716 GROSS PROFIT $ -- $ 7,690,707 $ -- $ (62,512) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 12,965 $ 1,075,324 $ -- $ 117,882 Insiders Compensation -- 78,911 -- -- Professional Fees -- 1,509,681 -- -- Other (Earnings in Joint Venture) -- 69,703 (69,703) -- TOTAL OPERATING EXPENSE $ 12,965 $ 2,733,619 $ (69,703) $ 117,882 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (12,965) $ 4,957,088 $ 69,703 $ (180,394) INTEREST EXPENSE (includes amort of debt fees) (177) 2,199,007 -- 614,434 DEPRECIATION -- 1,944,379 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (177) $ 4,143,386 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (12,788) $ 813,702 $ 69,703 $ (842,445) INCOME TAXES -- -- 18,000 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (12,788) $ 813,702 $ 51,703 $ (842,445) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP MONTH INT'L, INC. INC. CHEMICALS US, INC. ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,059,266 $ 332,686 TOTAL COST OF REVENUES -- 54,852 475,900 GROSS PROFIT $ 83,333 $ 1,004,414 $ (143,214) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,121 $ 254,365 $ (80,920) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,121 $ 254,365 $ (80,920) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 67,212 $ 750,049 $ (62,294) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,575 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,370 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,547 $ 103,679 $ (62,294) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,547 $ 103,679 $ (62,294) ============================================================================================================== STERLING PULP DEBTORS MONTH CHEMICALS, INC. ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,292,539 $ (83,333) $ 51,825,023 TOTAL COST OF REVENUES 1,981,822 (83,333) 41,941,578 GROSS PROFIT $ 1,310,717 $ -- $ 9,883,445 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,086 $ (558,861) 1,461,962 Insiders Compensation -- -- 78,911 Professional Fees -- -- 1,509,681 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,086 $ (558,861) $ 3,050,554 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 685,631 $ 558,861 6,832,891 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,570,365 DEPRECIATION 326,099 -- 2,826,890 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,099 $ 558,861 $ 6,397,255 ================================================================================================================= NET INCOME BEFORE TAXES $ 359,532 $ -- $ 435,636 INCOME TAXES -- -- 18,000 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 359,532 $ -- $ 417,636 =================================================================================================================
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 ENERGY, INC. CASE NUMBER: 01-37807-H-11
CASH RECEIPTS AND FILING TO DISBURSEMENTS Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 DATE - ----------------- --------- --------- --------- ---------- ---------- --------- --------- ---------- 1. CASH-BEGINNING OF MONTH 100 100 100 100 100 100 100 100 ========= ========= ========= ========== ========== ========= ========= ========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 50,693 63,217 50,033 69,040 67,945 67,591 72,867 707,395 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 1,518,626 1,802,575 1,533,633 1,491,574 1,536,562 847,203 1,280,599 15,726,912 --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL RECEIPTS 1,569,319 1,865,793 1,583,667 1,560,614 1,604,507 914,795 1,353,466 16,434,307 --------- --------- --------- --------- --------- --------- --------- ---------- (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 -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES 1,518,626 1,802,575 1,533,633 1,491,574 536,562 847,203 1,280,599 13,726,912 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) 50,693 63,217 50,033 69,040 1,067,945 67,591 72,867 2,707,395 --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,569,319 1,865,793 1,583,667 1,560,614 1,604,507 914,795 1,353,466 16,434,307 ========= ========= ========= ========= ========= ========= ========= ========== 19. PROFESSIONAL FEES -- -- -- -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- ---------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL DISBURSEMENTS 1,569,319 1,865,793 1,583,667 1,560,614 1,604,507 914,795 1,353,434 16,434,307 ========= ========= ========= ========= ========= ========= ========= ========== 22. NET CASH FLOW -- -- -- -- -- -- -- -- 23. CASH - END OF MONTH (MOR-2) 100 100 100 100 100 100 100 100
MOR-7 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 DATE ---------- --------- ---------- ---------- ------------- ---------- --------- ---------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- -- 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Dividend -- -- -- -- 1,000,000 -- -- 2,000,000 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Intercompany Funding 1,518,626 1,802,575 1,533,633 1,491,574 536,562 847,203 1,280,599 13,726,912 -- -- -- -- ---------- --------- ---------- ---------- ------------- ---------- --------- ---------- TOTAL OTHER RECEIPTS 1,518,626 1,802,575 1,533,633 1,491,574 1,536,562 847,203 1,280,599 15,726,912 ========== ========= ========== ========== ============= ========== ========= ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures -- -- -- -- -- -- -- -- Revenue & Royalties -- -- -- -- -- -- -- -- Interest Payment -- -- -- -- -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- -- -- -- -- Severance tax -- -- -- -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- -- -- -- -- Revolver payment to CIT 50,693 63,217 50,033 69,040 1,067,945 67,591 72,867 2,707,395 -- -- ---------- --------- ---------- ---------- ------------- ---------- --------- ---------- TOTAL OTHER DISBURSEMENTS 50,693 63,217 50,033 69,040 1,067,945 67,591 72,867 2,707,395 ========== ========= ========== ========== ============= ========== ========= ==========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 FOR THE PERIOD 5/01/02 - 5/31/02
CASH RECEIPTS AND Chase Chase DISBURSEMENTS 00103317203 00101818459 - ----------------- -------------- ----------- ------------ ----------- 1. CASH-BEGINNING OF MONTH -- 100 -- -- ============== =========== ============ =========== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- 72,867 4. LOANS & ADVANCES (attach list) -- -- 5. SALE OF ASSETS -- -- 6. OTHER (attach list) 1,280,599 -- -- -------------- ----------- ------------ ----------- TOTAL RECEIPTS 1,280,599 72,867 -- -- -------------- ----------- ------------ ----------- (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 -- -- 10. SECURED/RENTAL/LEASES -- -- 11. UTILITIES 1,280,599 -- 12. INSURANCE -- -- 13. INVENTORY PURCHASES -- -- 14. VEHICLE EXPENSES -- -- 15. TRAVEL & ENTERTAINMENT -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 17. ADMINISTRATIVE & SELLING -- -- 18. OTHER (attach list) -- 72,867 -------------- ----------- ------------ ----------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,280,599 72,867 -- -- ============== =========== ============ =========== 19. PROFESSIONAL FEES -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -------------- ----------- ------------ ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS 1,280,599 72,867 -- -- ============== =========== ============ =========== 22. NET CASH FLOW -- -- -- -- 23. CASH - END OF MONTH (MOR-2) -- 100 -- -- CASH RECEIPTS AND Total DISBURSEMENTS Debtor - ----------------- ------------ ----------- ------------- 1. CASH-BEGINNING OF MONTH -- -- 100 ============ =========== ============= RECEIPTS: 2. CASH SALES -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 72,867 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 1,280,599 ------------ ----------- ------------- TOTAL RECEIPTS -- -- 1,353,466 ------------ ----------- ------------- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A ============ =========== ============= DISBURSEMENTS: 7. NET PAYROLL -- -- -- 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID -- 10. SECURED/RENTAL/LEASES -- 11. UTILITIES 1,280,599 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING -- 18. OTHER (attach list) 72,867 ------------ ----------- ------------- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- 1,353,466 ============ =========== ============= 19. PROFESSIONAL FEES -- -- -- 20. U.S. TRUSTEE FEES -- -- -- ------------ ----------- ------------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- TOTAL DISBURSEMENTS -- -- 1,353,466 ============ =========== ============= 22. NET CASH FLOW -- -- -- 23. CASH - END OF MONTH (MOR-2) -- -- 100
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 FOR THE PERIOD 5/01/02 - 5/31/02
OTHER CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS: 00103317203 00101818459 Debtor - -------------- ------------ ------------ ------------ 6. OTHER RECEIPTS: Interest Income -- -- -- 401(k) Plan Refund -- -- -- Cobra Insurance Payment -- -- -- Dividend -- -- -- Royalty Owners Trust Account -- -- Emission Credits -- -- -- Intercompany Transfer 1,280,599 -- 1,280,599 ------------ --------- ------------ TOTAL OTHER RECEIPTS 1,280,599 -- 1,280,599 ============ ========= ============ 18. OTHER DISBURSEMENTS: Lease Operating Expenses -- Workover Expense -- Capital Expenditures -- -- -- Revenue & Royalties -- Interest Payment -- -- -- Restricted Cash - Bond Funding -- -- -- Severance tax -- Pre-petition checks voided in current period -- -- -- CIT Revolver Payments -- 72,867 72,867 ------------ --------- ------------ TOTAL OTHER DISBURSEMENTS -- 72,867 72,867 ============ ========= ============
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 CASH ACCOUNT RECONCILIATION MONTH OF MAY 2002
BANK NAME Chase Bk of TX Chase Bk of TX ACCOUNT NUMBER 00103317203 00101818459 ACCOUNT TYPE Concentration Concentration TOTAL - -------------- ---------------- --------------- ----------- BANK BALANCE $ -- $ 100 $ 100 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER -- ---------------- --------------- ----------- ADJUSTED BANK BALANCE $ -- $ 100 $ 100 ================ =============== =========== BEGINNING CASH - PER BOOKS $ -- $ 100 $ 100 RECEIPTS 72,867 72,867 TRANSFERS BETWEEN ACCOUNTS 1,280,599 1,280,599 (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (1,280,599) (72,867) (1,353,466) ---------------- --------------- ----------- ENDING CASH - PER BOOKS $ -- $ 100 $ 100 ================ =============== ===========
MOR-8 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-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) Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 DATE - ----------------------------------- -------- -------- -------- -------- -------- -------- -------- --------- 1 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2 -- -- -- -- -- -- -- -- 3 -- -- -- -- -- -- -- -- 4 -- -- -- -- -- -- -- -- 5 -- -- -- -- -- -- -- -- 6 -- -- -- -- -- -- -- -- 7 -- -- -- -- -- -- -- -- 8 -- -- -- -- -- -- -- -- 9 -- -- -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- --------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ======== ======== =========
PROFESSIONALS FILING TO NAME/ORDER DATE Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-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 EX-99.4 6 h98536exv99w4.txt MONTHLY OPERATING REPORT FOR 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: MAY YEAR: 2002
MONTH 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 Revised Revised Revised Revised - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $1,569,117 $1,466,000 $ 1,578,891 $ 1,141,971 $ 1,554,279 $1,707,430 $1,769,204 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (277,643) $ (13,259) $ (339,192) $ (604,191) $ (421,580) $ (127,852) $ (180,394) NET INCOME (LOSS) (MOR-6) $ (939,694) $ (675,264) $(1,001,244) $(1,266,289) $(1,083,585) $ (789,902) $ (842,445) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $3,090,908 $2,756,941 $ 2,724,120 $ 2,573,236 $ 2,738,115 $3,182,878 $2,867,783 (1) Excludes intercompany transfers as follows: $ -- $ -- $ 393,386 $ 200,000 $ 210,000 $ 230,000 $ 205,000
***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 proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- 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 2 of 13 6/19/02 SUMMARY OF COVERAGES FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 7/1/02 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/02 Number of vehicles Ded. $25,000 per occurrence. Zurich Amer. owned and leased 3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/02 Annual revenues and Excess to $1 Million SIR aggregate. Excess $1,000,000 GL remuneration $2,000,000 AL. 4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 7/1/02 Included aggregate. (Reinsured through AIG.) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/02 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $100,000,000 ea. loss and Lloyd's 1 year 7/1/02 Flat charge - based aggregate. Lore on exposures and 7 Excess Liability $50,000,000 Zurich 1 year 7/1/02 Flat charge 8 Excess Liability $50,000,000 AIG 1 year 7/1/02 Flat Charge 9 Excess Liability $50,000,000 Starr Excess 1 year 7/1/02 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/02 Based on volume Operators Liability and Ded. $25,000 per occurrence Co. thru Marsh throughput and no. Charterer's Legal $100,000 pollution London chartered vessels. Liability per occurrence. 11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 7/1/02 Volume thru put & P&L Brockbank & vessels docked. Liberty Und. 12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/02 Flat Brockbank & N.Y. Marine Gen. Ins. NO. TYPE OF INSURANCE ANNUAL PREMIUM --- ----------------- -------------- 1 Workers Compensation $195,653 - Audit at (AFCO) expiration. Plus all losses within deductible. 2 Automobile Liability $92,955 (AFCO) 3 Excess Liability $451,090 Annual - Half on 7/1/01; Excess to $1 Million SIR 1/2 on 1/1/02. 4 Excess Liability Included 5 Excess Liability $295,000 6 Excess Liability $241,886 7 Excess Liability $109,210 8 Excess Liability $80,938 9 Excess Liability $62,500 10 Marine Terminal $27,000 (AFCO) Min. premium & deposit. Operators Liability and Charterer's Legal Liability 11 Excess Marine Liability $57,375 12 Excess Marine Liability $21,250
Page 3 of 13 6/19/02
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 MAY 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 $ 1,369 $ - $ 156 Trade accounts receivable, net - 76,214 85 2,736 Other Receivables - 685 - 2,695 Due from affiliates 1,205 24,502 13,777 - Inventories - 31,798 - 8,584 Prepaid expenses 33 3,400 - 28 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 137,968 13,862 14,199 Property, plant and equipment, net - 120,474 2,823 5,930 Deferred income taxes - - - - Investments-Third Party - 1,500 5,232 - Investments in Subs 35,060 94,735 - - Other assets 865 35,093 - 1,233 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 389,770 $ 21,917 $ 21,362 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 177 187,581 1,433 6,711 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 38,926 - 9,776 Unsecured debt 186,538 262,270 1,110 70,426 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 (1,046) (58,958) 4,040 (8,521) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,678) (509,798) 19,374 (138,576) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,678) (512,335) 19,374 (138,576) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 389,770 $ 21,917 $ 21,362 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 58 $ - $ - Trade accounts receivable, net - 2,454 873 4,425 Other Receivables - 4,397 - - Due from affiliates 3,301 56,857 966 8,588 Inventories - - 181 1,936 Prepaid expenses - - - 516 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,301 63,766 2,020 15,465 Property, plant and equipment, net - - - 41,949 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,570 3,233 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,871 $ 362,810 $ 3,539 $ 57,414 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 25,211 962 2,817 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 624 11,472 - - Unsecured debt 1,123 265,052 170 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 (382) 1,121 (736) (10,821) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 397 (6,077) 2,407 (7,746) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 397 (6,077) 2,407 (7,746) TOTAL LIABILITIES AND EQUITY $ 5,871 $ 362,810 $ 3,539 $ 57,414 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,754 Trade accounts receivable, net - 86,787 Other Receivables - 7,777 Due from affiliates (108,901) 295 Inventories - 42,499 Prepaid expenses - 3,977 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (108,901) 143,089 Property, plant and equipment, net - 171,176 Deferred income taxes - - Investments-Third Party - 6,732 Investments in Subs (381,672) 45,453 Other assets (1) 42,993 -------------------------------- TOTAL ASSETS $(490,574) $ 409,443 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,901) 180,066 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (10,400) 50,398 Unsecured debt (133,130) 715,902 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 - (75,303) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (856,947) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,484) TOTAL LIABILITIES AND EQUITY $(490,574) $ 409,443 ================================
* 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
----------------------------------------------------------------------------------------- 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 ----------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 5,656 $ 2,614 $ 5,479 $ 5,821 $ 6,096 $ 6,168 $ 6,443 ROYALTY AND REVENUE PAYABLE -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- TAX PAYABLE: -- -- Federal Payroll Taxes -- 26 -- -- State Payroll & Sales (2) (3) (3) -- (1) (1) (2) Ad Valorem Taxes -- -- -- -- Other Taxes 112 137 162 232 220 245 270 TOTAL TAXES PAYABLE $ 110 $ 161 $ 159 $ 232 $ 219 $ 244 $ 268 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) $ 5,766 $ 2,775 $ 5,638 $ 6,053 $ 6,315 $ 6,412 $ 6,711 ================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH MAY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 70,934 $ 70,934 $ -- $ -- $ -- $ -- 31-60 687 687 -- -- -- -- 61-90 458 458 -- -- -- -- 91 + 28,145 28,145 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $100,224 $100,224 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MAY 31, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, MONTH HOLDINGS, INC. INC. ENERGY, INC. INC. ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 45,186,158 $ 185,170 $ 1,769,204 TOTAL COST OF REVENUES -- 37,495,451 185,170 1,831,716 GROSS PROFIT $ -- $ 7,690,707 $ -- $ (62,512) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 12,965 $ 1,075,324 $ -- $ 117,882 Insiders Compensation -- 78,911 -- -- Professional Fees -- 1,509,681 -- -- Other (Earnings in Joint Venture) -- 69,703 (69,703) -- TOTAL OPERATING EXPENSE $ 12,965 $ 2,733,619 $ (69,703) $ 117,882 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (12,965) $ 4,957,088 $ 69,703 $ (180,394) INTEREST EXPENSE (includes amort of debt fees) (177) 2,199,007 -- 614,434 DEPRECIATION -- 1,944,379 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (177) $ 4,143,386 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (12,788) $ 813,702 $ 69,703 $ (842,445) INCOME TAXES -- -- 18,000 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (12,788) $ 813,702 $ 51,703 $ (842,445) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP MONTH INT'L, INC. INC. CHEMICALS US, INC. ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,059,266 $ 332,686 TOTAL COST OF REVENUES -- 54,852 475,900 GROSS PROFIT $ 83,333 $ 1,004,414 $ (143,214) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,121 $ 254,365 $ (80,920) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,121 $ 254,365 $ (80,920) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 67,212 $ 750,049 $ (62,294) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,575 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,370 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,547 $ 103,679 $ (62,294) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,547 $ 103,679 $ (62,294) ============================================================================================================== STERLING PULP DEBTORS MONTH CHEMICALS, INC. ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,292,539 $ (83,333) $ 51,825,023 TOTAL COST OF REVENUES 1,981,822 (83,333) 41,941,578 GROSS PROFIT $ 1,310,717 $ -- $ 9,883,445 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,086 $ (558,861) 1,461,962 Insiders Compensation -- -- 78,911 Professional Fees -- -- 1,509,681 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,086 $ (558,861) $ 3,050,554 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 685,631 $ 558,861 6,832,891 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,570,365 DEPRECIATION 326,099 -- 2,826,890 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,099 $ 558,861 $ 6,397,255 ================================================================================================================= NET INCOME BEFORE TAXES $ 359,532 $ -- $ 435,636 INCOME TAXES -- -- 18,000 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 359,532 $ -- $ 417,636 =================================================================================================================
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 Nov-01 Dec-01 Jan-02 Feb-02 - ----------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 297,869 $ 213,923 $ 412,443 $ 123,772 ------------ ------------ ------------ ------------ RECEIPTS: 2. CASH SALES $ -- -- -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,695,639 $ 1,489,298 $ 1,582,440 1,349,186 4. LOANS & ADVANCES (attach list) -- -- -- -- 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 1,311,323 1,466,164 1,246,396 1,465,834 TOTAL RECEIPTS $ 3,006,962 $ 2,955,462 $ 2,828,836 $ 2,815,019 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 297,757 $ 146,889 $ 211,662 $ 142,024 8. PAYROLL TAXES PAID 58,459 89,708 81,238 61,762 9. SALES, USE & OTHER TAXES PAID 2,786 21 802 567 10. SECURED/RENTAL/LEASES 486 -- -- -- 11. UTILITIES 279,750 260,897 242,028 192,360 12. INSURANCE -- -- $ 1,582,440 -- 13. INVENTORY PURCHASES 83,785 146,466 61,262 151,616 14. VEHICLE EXPENSES -- -- -- -- 15. TRAVEL & ENTERTAINMENT 10,869 861 546 6,593 16. REPAIRS, MAINTENANCE & SUPPLIES 78,837 49,567 84,536 55,567 17. ADMINISTRATIVE & SELLING 2,747 1,950 -- -- 18. OTHER (attach list) 2,275,432 2,060,583 2,435,431 2,162,748 TOTAL DISBURSEMENTS FROM OPERATIONS $ 3,090,908 $ 2,756,941 $ 3,117,506 $ 2,773,236 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES -- -- (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 3,090,908 $ 2,756,941 $ 3,117,506 $ 2,773,236 22. NET CASH FLOW $ (83,946) $ 198,521 $ (288,670) $ 41,783 23. CASH - END OF MONTH (MOR-2) $ 213,923 $ 412,444 $ 123,772 $ 165,556 CASH RECEIPTS AND FILING TO DISBURSEMENTS Mar-02 Apr-02 May-02 DATE - ----------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 165,556 $ 167,642 $ 151,768 $ 714,483 ------------ ------------ ------------ ------------ RECEIPTS: 2. CASH SALES -- -- $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,657,321 1,655,125 1,652,762 20,439,816 4. LOANS & ADVANCES (attach list) -- -- -- -- 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 1,292,880 1,741,879 1,423,818 14,323,288 TOTAL RECEIPTS $ 2,950,201 $ 3,397,004 $ 3,076,580 $ 34,763,104 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 157,720 $ 184,218 $ 146,485 $ 1,928,472 8. PAYROLL TAXES PAID 66,433 71,168 56,463 760,245 9. SALES, USE & OTHER TAXES PAID 4,742 3,914 1,958 17,476 10. SECURED/RENTAL/LEASES -- -- -- 4,486 11. UTILITIES 254,704 223,466 193,003 2,005,627 12. INSURANCE -- -- -- 280,148 13. INVENTORY PURCHASES 73,403 192,570 224,244 1,400,593 14. VEHICLE EXPENSES -- -- -- -- 15. TRAVEL & ENTERTAINMENT 5,975 -- 6,019 55,729 16. REPAIRS, MAINTENANCE & SUPPLIES 39,635 48,832 88,852 608,599 17. ADMINISTRATIVE & SELLING 2,710 2,775 2,775 15,521 18. OTHER (attach list) 2,345,504 2,685,999 2,352,984 28,245,126 TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,948,115 $ 3,412,878 $ 3,072,783 $ 35,322,022 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 2,948,115 $ 3,412,878 $ 3,072,783 $ 35,322,022 22. NET CASH FLOW $ 2,086 $ (15,874) $ 3,797 $ (558,918) 23. CASH - END OF MONTH (MOR-2) $ 167,642 $ 151,768 $ 155,565 $ 155,565
MOR-7 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11
OTHER CASH RECEIPTS AND Nov-01 Dec-01 Jan-02 DISBURSEMENTS: ----------------------- ------ ------ ---------- 6. OTHER RECEIPTS: Interest Income -- -- 401(k) Plan Refund -- -- Cobra Insurance Payment 5,259 3,764 -- Miscellaneous 12,065 -- 32,396 Royalty Owners Trust Account -- Emission Credits -- Intercompany Transfers 1,294,000 1,462,400 1,214,000 Account Transfers -- TOTAL OTHER RECEIPTS $1,311,323 $1,466,164 $1,246,396 18. OTHER DISBURSEMENTS: Lease Operating Expense -- Workover Expense -- Capital Expenditures -- Revenue & Royalties 10,150 -- Interest Payment -- Employee Benefits 13,438 26,485 27,352 Severance tax -- Pre-petition checks voided in current period -- Insiders -- Restricted Cash Transactions -- Contract Services 481,869 367,969 464,117 Licenses / Fees / Permits 89 -- 14,645 Freight 100,851 59,460 73,970 Account Transfers -- 393,386 Outstanding checks to Balance to G/L (59,844) 168,807 (160,665) CIT Revolver Payments 1,728,878 1,437,861 1,622,626 TOTAL OTHER DISBURSEMENTS $2,275,432 $2,060,583 $2,435,431 OTHER CASH RECEIPTS AND Feb-02 Mar-02 Apr-02 May-02 FILING TO DISBURSEMENTS: DATE ----------------------- ---------- ---------- ------------- ---------- ----------- 6. OTHER RECEIPTS: Interest Income $ -- $ 13,960.67 $ -- $ 14,505 401(k) Plan Refund -- -- -- -- Cobra Insurance Payment 4,834 -- 3,398 2,886 37,959 Miscellaneous 1,880 70,520 8,931 250,424 Royalty Owners Trust Account -- -- -- -- Emission Credits -- -- -- -- Intercompany Transfers 1,461,000 1,291,000 1,424,000 1,412,000 13,080,400 Account Transfers -- 230,000 -- 940,000 TOTAL OTHER RECEIPTS $1,465,834 $1,292,880 $ 1,741,879 $1,423,818 $14,323,288 18. OTHER DISBURSEMENTS: Lease Operating Expense -- $ -- $ -- $ -- $ -- Workover Expense -- -- -- -- -- Capital Expenditures -- -- -- -- 17,812 Revenue & Royalties -- -- -- -- 10,150 Interest Payment -- -- -- -- -- Employee Benefits 27,296 41,037 27,032 26,130 298,346 Severance tax -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- (5,215) Insiders -- -- -- -- -- Restricted Cash Transactions -- -- -- -- -- Contract Services 463,768 502,800 434,528 554,635 2,687,610 Licenses / Fees / Permits 2,190 1,000 25 14,615 36,051 Freight 56,410 74,185 67,647 83,977 511,018 Account Transfers 200,000 210,000 230,000 205,000 1,103,386 Outstanding checks to Balance to G/L 104,132 (125,520) 195,350 (193,585) (313,366) CIT Revolver Payments 1,308,951 1,642,003 1,734,416 1,662,211 14,473,592 TOTAL OTHER DISBURSEMENTS $2,162,748 $2,345,504 $ 2,688,999 $2,352,984 $18,819,386
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 MAY 2002
CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS 00100547117 00103316965 103405768 630181003508 ----------------- ----------- ------------- ----------- ------------- 1. CASH-BEGINNING OF MONTH $ 20,583.48 $ 984.11 $ 10,898.32 $ 0.00 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 $ 0.00 $ 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 299,216.03 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 0.00 1,207,000.00 205,000.00 0.00 TOTAL RECEIPTS $299,216.03 $1,207,000.00 $205,000.00 $ 0.00 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ $146,485.24 $ 8. PAYROLL TAXES PAID 56,463.32 9. SALES, USE & OTHER TAXES PAID 1,957.68 10. SECURED/RENTAL/LEASES 11. UTILITIES 193,002.99 12. INSURANCE 13. INVENTORY PURCHASES 224,243.59 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 6,018.64 16. REPAIRS, MAINTENANCE & SUPPLIES 88,852.44 17. ADMINISTRATIVE & SELLING 2,775.00 18. OTHER (attach list) 319,699.51 690,772.76 0.00 0.00 TOTAL DISBURSEMENTS FROM OPERATIONS $319,699.51 $1,207,623.10 $202,948.56 $ 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 $319,699.51 $1,207,623.10 $202,948.56 $ 0.00 22. NET CASH FLOW $(20,483.48) $ (623.10) $ 2,051.44 $ 0.00 23. CASH - END OF MONTH (MOR-2) $ 100.00 $ 361.01 $ 12,949.76 $ 0.00 CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS 5577659 1171987307 DATE ----------------- ------------- --------------- ------------- 1. CASH-BEGINNING OF MONTH $ 67,421.76 $ 51,880.29 151,767.96 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,353,545.86 1,652,761.89 4. LOANS & ADVANCES (attach list) 0.00 5. SALE OF ASSETS 0.00 6. OTHER (attach list) 2,886.17 8,931.49 1,423,817.66 TOTAL RECEIPTS $1,356,432.03 $ 8,931.49 3,076,579.55 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ 146,485.24 8. PAYROLL TAXES PAID 56,463.32 9. SALES, USE & OTHER TAXES PAID 1,957.68 10. SECURED/RENTAL/LEASES 0.00 11. UTILITIES 193,002.99 12. INSURANCE 0.00 13. INVENTORY PURCHASES 224,243.59 14. VEHICLE EXPENSES 0.00 15. TRAVEL & ENTERTAINMENT 6,018.64 16. REPAIRS, MAINTENANCE & SUPPLIES 88,852.44 17. ADMINISTRATIVE & SELLING 2,775.00 18. OTHER (attach list) 1,342,511.80 0.00 2,352,984.07 TOTAL DISBURSEMENTS FROM OPERATIONS $1,342,511.80 $ 0.00 3,072,782.97 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 $1,342,511.80 $ 0.00 3,072,782.97 22. NET CASH FLOW $ 13,920.23 $ 8,931.49 3,796.58 23. CASH - END OF MONTH (MOR-2) $ 81,341.99 $ 60,811.78 155,564.54
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 May 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 1,207,000.00 Account Transfers 205,000.00 TOTAL OTHER RECEIPTS $ 0.00 $1,207,000.00 $ 205,000.00 $ 0.00 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures Revenue & Royalties Interest Payment Employee Benefits 26,130.29 Severance tax Pre-petition checks voided in current period Insiders Restricted Cash Transactions Contract Services 554,635.12 Licenses / Fees / Permits 14,615.00 Freight 83,976.98 Account Transfers 205,000.00 Outstanding checks to Balance to G/L (193,584.63) CIT Revolver Payments 319,699.51 TOTAL OTHER DISBURSEMENTS $319,699.51 $ 690,772.76 $ 0.00 $ 0.00 OTHER CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS: 5577659 1171987307 DATE ----------------------- ---------------------------------------------------- 6. OTHER RECEIPTS:$ 13 Interest Income $ 0.00 401(k) Plan Refund 0.00 Cobra Insurance Payment 2,886.17 2,886.17 Miscellaneous 8,931.49 8,931.49 Royalty Owners Trust Account 0.00 Emission Credits 0.00 Intercompany Transfers 1,412,000.00 Account Transfers 0.00 0.00 0.00 TOTAL OTHER RECEIPTS $ 2,886.17 $ 8,931.49 $1,423,817.66 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 26,130.29 Severance tax 0.00 Pre-petition checks voided in current period 0.00 Insiders 0.00 Restricted Cash Transactions 0.00 Contract Services 554,635.12 Licenses / Fees / Permits 14,615.00 83,976.98 Freight 205,000.00 Account Transfers (193,584.63) Outstanding checks to Balance to G/L 1,662,211.31 CIT Revolver Payments $1,342,511.80 TOTAL OTHER DISBURSEMENTS $1,342,511.80 $ 0.00 $2,352,984.07
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H-11 CASH ACCOUNT RECONCILIATION MONTH OF MAY 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 $ 361 $ 81,342 $ 60,812 $ 12,950 $ 100 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 361 81,342 $ 60,812 $ 12,950 $ 100 $ -- ================================================================================================================================= BEGINNING CASH - PER BOOKS $ 984 $ 67,422 $ 51,880 $ 10,898 $ 20,583 $ -- RECEIPTS 1,356,432 8,931 299,216 TRANSFERS BETWEEN ACCOUNTS 1,207,000 -- 205,000 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (1,207,623) (1,342,512) (202,949) (319,700) ENDING CASH - PER BOOKS $ 361 $ 81,342 $ 60,812 $ 12,950 $ 100 $ -- ================================================================================================================================= BANK NAME ACCOUNT NUMBER ACCOUNT TYPE TOTAL - -------------- ----------- BANK BALANCE $ 155,565 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 155,565 =========================================== BEGINNING CASH - PER BOOKS $ 151,768 RECEIPTS 1,664,580 TRANSFERS BETWEEN ACCOUNTS 1,412,000 (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (3,072,783) ENDING CASH - PER BOOKS $ 155,564 ===========================================
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) Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 DATE - ------------------------------------- -------- -------- -------- -------- --------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-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 EX-99.5 7 h98536exv99w5.txt MONTHLY OPERATING REPORT FOR STERLING CHEM INT'L EXHIBIT 99.5 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37809-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: MAY YEAR: 2002
MONTH 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 - ----------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 83,333 $ 88,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 81,800 $ 66,830 $ 77,363 $ 81,888 $ 79,933 $ 77,397 $ 67,212 NET INCOME (LOSS) (MOR-6) $ 21,135 $ 6,165 $ 16,698 $ 21,223 $ 19,268 $ 16,732 $ 6,547 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***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 proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- 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 INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 12 6/19/02 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 12 6/19/02
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 MAY 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 $ 1,369 $ - $ 156 Trade accounts receivable, net - 76,214 85 2,736 Other Receivables - 685 - 2,695 Due from affiliates 1,205 24,502 13,777 - Inventories - 31,798 - 8,584 Prepaid expenses 33 3,400 - 28 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 137,968 13,862 14,199 Property, plant and equipment, net - 120,474 2,823 5,930 Deferred income taxes - - - - Investments-Third Party - 1,500 5,232 - Investments in Subs 35,060 94,735 - - Other assets 865 35,093 - 1,233 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 389,770 $ 21,917 $ 21,362 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 177 187,581 1,433 6,711 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 38,926 - 9,776 Unsecured debt 186,538 262,270 1,110 70,426 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 (1,046) (58,958) 4,040 (8,521) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,678) (509,798) 19,374 (138,576) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,678) (512,335) 19,374 (138,576) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 389,770 $ 21,917 $ 21,362 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 58 $ - $ - Trade accounts receivable, net - 2,454 873 4,425 Other Receivables - 4,397 - - Due from affiliates 3,301 56,857 966 8,588 Inventories - - 181 1,936 Prepaid expenses - - - 516 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,301 63,766 2,020 15,465 Property, plant and equipment, net - - - 41,949 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,570 3,233 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,871 $ 362,810 $ 3,539 $ 57,414 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 25,211 962 2,817 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 624 11,472 - - Unsecured debt 1,123 265,052 170 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 (382) 1,121 (736) (10,821) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 397 (6,077) 2,407 (7,746) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 397 (6,077) 2,407 (7,746) TOTAL LIABILITIES AND EQUITY $ 5,871 $ 362,810 $ 3,539 $ 57,414 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,754 Trade accounts receivable, net - 86,787 Other Receivables - 7,777 Due from affiliates (108,901) 295 Inventories - 42,499 Prepaid expenses - 3,977 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (108,901) 143,089 Property, plant and equipment, net - 171,176 Deferred income taxes - - Investments-Third Party - 6,732 Investments in Subs (381,672) 45,453 Other assets (1) 42,993 -------------------------------- TOTAL ASSETS $(490,574) $ 409,443 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,901) 180,066 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (10,400) 50,398 Unsecured debt (133,130) 715,902 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 - (75,303) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (856,947) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,484) TOTAL LIABILITIES AND EQUITY $(490,574) $ 409,443 ================================
* 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 INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
-------------------------------------------------------------------------------- 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 (revised) (revised) (revised) (revised) (revised) -------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- ROYALTY AND REVENUE PAYABLE -- -- NOTES PAYABLE -- -- TAX PAYABLE: -- -- Federal Payroll Taxes -- -- State Payroll & Sales -- -- Ad Valorem Taxes -- -- Other Taxes -- -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- 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) $ -- $ -- $ -- $ --- $ -- $ -- $ -- ========================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH MAY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 70,934 $ 70,934 $ -- $ -- $ -- $ -- 31-60 687 687 -- -- -- -- 61-90 458 458 -- -- -- -- 91 + 28,145 28,145 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $100,224 $100,224 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MAY 31, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, MONTH HOLDINGS, INC. INC. ENERGY, INC. INC. ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 45,186,158 $ 185,170 $ 1,769,204 TOTAL COST OF REVENUES -- 37,495,451 185,170 1,831,716 GROSS PROFIT $ -- $ 7,690,707 $ -- $ (62,512) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 12,965 $ 1,075,324 $ -- $ 117,882 Insiders Compensation -- 78,911 -- -- Professional Fees -- 1,509,681 -- -- Other (Earnings in Joint Venture) -- 69,703 (69,703) -- TOTAL OPERATING EXPENSE $ 12,965 $ 2,733,619 $ (69,703) $ 117,882 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (12,965) $ 4,957,088 $ 69,703 $ (180,394) INTEREST EXPENSE (includes amort of debt fees) (177) 2,199,007 -- 614,434 DEPRECIATION -- 1,944,379 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (177) $ 4,143,386 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (12,788) $ 813,702 $ 69,703 $ (842,445) INCOME TAXES -- -- 18,000 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (12,788) $ 813,702 $ 51,703 $ (842,445) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP MONTH INT'L, INC. INC. CHEMICALS US, INC. ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,059,266 $ 332,686 TOTAL COST OF REVENUES -- 54,852 475,900 GROSS PROFIT $ 83,333 $ 1,004,414 $ (143,214) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,121 $ 254,365 $ (80,920) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,121 $ 254,365 $ (80,920) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 67,212 $ 750,049 $ (62,294) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,575 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,370 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,547 $ 103,679 $ (62,294) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,547 $ 103,679 $ (62,294) ============================================================================================================== STERLING PULP DEBTORS MONTH CHEMICALS, INC. ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,292,539 $ (83,333) $ 51,825,023 TOTAL COST OF REVENUES 1,981,822 (83,333) 41,941,578 GROSS PROFIT $ 1,310,717 $ -- $ 9,883,445 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,086 $ (558,861) 1,461,962 Insiders Compensation -- -- 78,911 Professional Fees -- -- 1,509,681 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,086 $ (558,861) $ 3,050,554 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 685,631 $ 558,861 6,832,891 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,570,365 DEPRECIATION 326,099 -- 2,826,890 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,099 $ 558,861 $ 6,397,255 ================================================================================================================= NET INCOME BEFORE TAXES $ 359,532 $ -- $ 435,636 INCOME TAXES -- -- 18,000 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 359,532 $ -- $ 417,636 =================================================================================================================
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 INTERNATIONAL CASE NUMBER: 01-37809-H-11 Chase Bank of Texas - #00100551903
CASH RECEIPTS AND FILING TO DISBURSEMENTS Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 DATE - ----------------- --------- --------- --------- --------- --------- --------- ---------- ---------- 1. CASH-BEGINNING OF MONTH -- -- -- -- -- -- -- -- RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- -- -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) -- -- -- -- -- -- -- -- TOTAL RECEIPTS -- -- -- -- -- -- -- -- (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 -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES -- -- -- -- -- -- -- -- 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) -- -- -- -- -- -- -- -- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- -- -- -- -- 19. PROFESSIONAL FEES -- -- -- -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- TOTAL DISBURSEMENTS -- -- -- -- -- -- -- -- 22. NET CASH FLOW -- -- -- -- -- -- -- -- 23. CASH - END OF MONTH (MOR-2) -- -- -- -- -- -- -- --
MOR-7 CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H-11 Chase Bank of Texas - #00100551903
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 DATE ----------------------- ---------- ---------- ---------- -------- -------- --------- ---------- --------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- 401(k) Plan Refund -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- Miscellaneous -- -- -- -- -- Royalty Owners Trust Account Emission Credits -- -- -- -- -- TOTAL OTHER RECEIPTS -- -- -- -- -- 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures -- -- -- -- -- Revenue & Royalties Interest Payment -- -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- -- Severance Tax Pre-petition checks voided in current period -- -- -- -- -- TOTAL OTHER DISBURSEMENTS -- -- -- -- --
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals International, Inc. CASE NUMBER: 01-37809-H-11 CASH ACCOUNT RECONCILIATION MONTH OF MAY 2002
BANK NAME Chase Bk of TX ACCOUNT NUMBER 00100551903 ACCOUNT TYPE Concentration TOTAL - ------------ -------------- ----- BANK BALANCE $ -- DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- BEGINNING CASH - PER BOOKS $ -- RECEIPTS -- TRANSFERS BETWEEN ACCOUNTS -- (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS -- ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
MOR-8 CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-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) Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 DATE ------------------------------------- -------- -------- -------- -------- ------------ -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 DATE --------------- ---------- ---------- ---------- -------- -------- ---------- ---------- ----------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(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 EX-99.6 8 h98536exv99w6.txt MONTHLY OPERATING REPORT FOR 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: MAY YEAR: 2002
11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 MONTH Revised Revised Revised Revised Revised - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $1,116,391 $1,156,830 $1,059,266 $1,059,266 $ 1,087,139 $ 1,076,963 $ 1,059,266 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 819,067 $ 662,161 $ 584,521 $ 781,134 $ 786,914 $ 765,999 $ 750,049 NET INCOME (LOSS) (MOR-6) $ 154,684 $ 15,785 $ (61,844) $ 80,692 $ 140,569 $ 101,602 $ 103,679 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $1,411,568 $ 417,049 $2,043,090 $1,041,816 $ 298,056 $ 1,479,491 $ 1,387,906 (1) Excludes intercompany transfers as follows: $2,437,386 $ 713,016 $ 924,751 $ -- $ 981,639 $ 647,602 $ --
***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 proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- 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 6/19/02 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 6/19/02
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 MAY 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 $ 1,369 $ - $ 156 Trade accounts receivable, net - 76,214 85 2,736 Other Receivables - 685 - 2,695 Due from affiliates 1,205 24,502 13,777 - Inventories - 31,798 - 8,584 Prepaid expenses 33 3,400 - 28 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 137,968 13,862 14,199 Property, plant and equipment, net - 120,474 2,823 5,930 Deferred income taxes - - - - Investments-Third Party - 1,500 5,232 - Investments in Subs 35,060 94,735 - - Other assets 865 35,093 - 1,233 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 389,770 $ 21,917 $ 21,362 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 177 187,581 1,433 6,711 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 38,926 - 9,776 Unsecured debt 186,538 262,270 1,110 70,426 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 (1,046) (58,958) 4,040 (8,521) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,678) (509,798) 19,374 (138,576) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,678) (512,335) 19,374 (138,576) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 389,770 $ 21,917 $ 21,362 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 58 $ - $ - Trade accounts receivable, net - 2,454 873 4,425 Other Receivables - 4,397 - - Due from affiliates 3,301 56,857 966 8,588 Inventories - - 181 1,936 Prepaid expenses - - - 516 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,301 63,766 2,020 15,465 Property, plant and equipment, net - - - 41,949 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,570 3,233 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,871 $ 362,810 $ 3,539 $ 57,414 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 25,211 962 2,817 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 624 11,472 - - Unsecured debt 1,123 265,052 170 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 (382) 1,121 (736) (10,821) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 397 (6,077) 2,407 (7,746) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 397 (6,077) 2,407 (7,746) TOTAL LIABILITIES AND EQUITY $ 5,871 $ 362,810 $ 3,539 $ 57,414 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,754 Trade accounts receivable, net - 86,787 Other Receivables - 7,777 Due from affiliates (108,901) 295 Inventories - 42,499 Prepaid expenses - 3,977 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (108,901) 143,089 Property, plant and equipment, net - 171,176 Deferred income taxes - - Investments-Third Party - 6,732 Investments in Subs (381,672) 45,453 Other assets (1) 42,993 -------------------------------- TOTAL ASSETS $(490,574) $ 409,443 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,901) 180,066 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (10,400) 50,398 Unsecured debt (133,130) 715,902 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 - (75,303) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (856,947) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,484) TOTAL LIABILITIES AND EQUITY $(490,574) $ 409,443 ================================
* 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
--------------------------------------------------------------------------------------------- Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 --------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 276 $ 420 $ 440 $ 656 $ 326 $ 305 $ 596 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 $ 12 24 18 TOTAL TAXES PAYABLE $ 21 $ 8 $ 35 13 12 $ 24 $ 18 SECURED DEBT POST-PETITION -- -- -- ACCRUED INTEREST PAYABLE -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 90 110 130 150 170 50 70 2. Lease Operating Expenses/Capital -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 19,796 $ 19,946 $ 20,014 $ 20,228 $ 19,917 $ 19,787 $ 20,093 ====================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH MAY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 70,934 $ 70,934 $ -- $ -- $ -- $ -- 31-60 687 687 -- -- -- -- 61-90 458 458 -- -- -- -- 91 + 28,145 28,145 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $100,224 $100,224 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MAY 31, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, MONTH HOLDINGS, INC. INC. ENERGY, INC. INC. ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 45,186,158 $ 185,170 $ 1,769,204 TOTAL COST OF REVENUES -- 37,495,451 185,170 1,831,716 GROSS PROFIT $ -- $ 7,690,707 $ -- $ (62,512) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 12,965 $ 1,075,324 $ -- $ 117,882 Insiders Compensation -- 78,911 -- -- Professional Fees -- 1,509,681 -- -- Other (Earnings in Joint Venture) -- 69,703 (69,703) -- TOTAL OPERATING EXPENSE $ 12,965 $ 2,733,619 $ (69,703) $ 117,882 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (12,965) $ 4,957,088 $ 69,703 $ (180,394) INTEREST EXPENSE (includes amort of debt fees) (177) 2,199,007 -- 614,434 DEPRECIATION -- 1,944,379 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (177) $ 4,143,386 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (12,788) $ 813,702 $ 69,703 $ (842,445) INCOME TAXES -- -- 18,000 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (12,788) $ 813,702 $ 51,703 $ (842,445) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP MONTH INT'L, INC. INC. CHEMICALS US, INC. ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,059,266 $ 332,686 TOTAL COST OF REVENUES -- 54,852 475,900 GROSS PROFIT $ 83,333 $ 1,004,414 $ (143,214) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,121 $ 254,365 $ (80,920) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,121 $ 254,365 $ (80,920) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 67,212 $ 750,049 $ (62,294) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,575 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,370 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,547 $ 103,679 $ (62,294) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,547 $ 103,679 $ (62,294) ============================================================================================================== STERLING PULP DEBTORS MONTH CHEMICALS, INC. ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,292,539 $ (83,333) $ 51,825,023 TOTAL COST OF REVENUES 1,981,822 (83,333) 41,941,578 GROSS PROFIT $ 1,310,717 $ -- $ 9,883,445 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,086 $ (558,861) 1,461,962 Insiders Compensation -- -- 78,911 Professional Fees -- -- 1,509,681 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,086 $ (558,861) $ 3,050,554 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 685,631 $ 558,861 6,832,891 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,570,365 DEPRECIATION 326,099 -- 2,826,890 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,099 $ 558,861 $ 6,397,255 ================================================================================================================= NET INCOME BEFORE TAXES $ 359,532 $ -- $ 435,636 INCOME TAXES -- -- 18,000 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 359,532 $ -- $ 417,636 =================================================================================================================
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 11/30/01 12/31/01 1/31/02 2/28/02 - ----------------------------------------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 329,491 $ 9,021 $ 19,490 $ (45,956) RECEIPTS: 2. CASH SALES $ -- $ 392,516 $ 3. COLLECTION OF ACCOUNTS RECEIVABLE 831,076 1,978,631 969,180 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 2,697,409 748,018 923,764 105,019 TOTAL RECEIPTS $ 3,528,485 $ 1,140,534 $ 2,902,395 $ 1,074,199 (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 46,425 15,790 7,707 35,293 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 211,897 107,893 143,435 9,970 18. OTHER (attach list) 3,590,632 1,006,383 2,816,699 996,552 TOTAL DISBURSEMENTS FROM OPERATIONS $ 3,848,954 $ 1,130,065 $ 2,967,841 $ 1,041,816 19. PROFESSIONAL FEES $ -- 20. U.S. TRUSTEE FEES -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- TOTAL DISBURSEMENTS $ 3,848,954 $ 1,130,065 $ 2,967,841 $ 1,041,816 22. NET CASH FLOW $ (320,470) $ 10,469 $ (65,446) $ 32,383 23. CASH - END OF MONTH (MOR-2) $ 9,021 $ 19,490 $ (45,956) $ (13,573) CASH RECEIPTS AND FILING TO DISBURSEMENTS 3/31/02 4/30/02 5/31/02 DATE - ----------------------------------------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ (13,573) $ 13,196 $ 164,030 $ 271,082 RECEIPTS: 2. CASH SALES $ $ -- $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 242,792 1,531,316 1,188,084 13,027,473 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 1,063,679 746,611 94,069 26,854,884 TOTAL RECEIPTS $ 1,306,464 $ 2,277,927 $ 1,282,153 $ 39,882,357 (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 13,458 12,292 23,843 234,810 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 137,451 177,328 824,094 18. OTHER (attach list) 1,128,786 1,937,473 1,364,063 39,036,258 TOTAL DISBURSEMENTS FROM OPERATIONS $ 1,279,695 $ 2,127,093 $ 1,387,906 $ 40,095,162 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 1,279,695 $ 2,127,093 $ 1,387,906 $ 40,095,162 22. NET CASH FLOW $ 26,769 $ 150,833 $ (105,753) $ (212,805) 23. CASH - END OF MONTH (MOR-2) $ 13,196 $ 164,030 $ 58,277 $ 58,277
MOR-7 CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: 11/30/01 12/31/01 1/31/02 2/28/02 - --------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income 2 13 19 401(k) Plan Refund -- Cobra Insurance Payment 23 -- Miscellaneous -- Advance from Parent company - Sterling Chemicals -- 105,000 Loan Advance from a subsidiary - Sterling NRO -- Return of investment from SPCUS 1,463,216 107,183 -- Rec'd in error, to be returned in Sep 01 SPC Ltd -- cash receipts re Inter company AR 1,234,170 640,833 923,751 rec'd in error and to be returned in Nov 01. -- TOTAL OTHER RECEIPTS $2,697,409 $ 748,018 $ 923,764 $ 105,019 18. OTHER DISBURSEMENTS: Workover Expense -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals 1,982,808 484,482 119,811 cash disbursements re Inter company AP 454,578 228,534 440,050 CIT revolver cash sweep 1,153,246 293,367 1,891,948 996,552 Capital contribution to SPCUS 364,890 TOTAL OTHER DISBURSEMENTS $3,590,632 $1,006,383 $ 2,816,699 $ 996,552 OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: 3/31/02 4/30/02 5/31/02 DATE - ------------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 33 $ 9 $ 8 $ 1,580 401(k) Plan Refund -- Cobra Insurance Payment -- Miscellaneous 2,061 5,983 Advance from Parent company - Sterling Chemicals 99,000 92,000 296,000 Loan Advance from a subsidiary - Sterling NRO -- 19,409,155 Return of investment from SPCUS 88,741 1,659,140 Rec'd in error, to be returned in Sep 01 SPC Ltd -- cash receipts re Inter company AR 1,063,639 558,861 5,248,368 rec'd in error and to be returned in Nov 01. 234,658 TOTAL OTHER RECEIPTS $ 1,063,672 $ 746,611 $ 94,069 $ 26,854,884 18. OTHER DISBURSEMENTS: Workover Expense -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals 949,787 351,178 26,613,282 cash disbursements re Inter company AP 31,852 296,424 2,115,059 CIT revolver cash sweep 147,147 1,289,871 1,364,063 9,874,674 Capital contribution to SPCUS 433,243 TOTAL OTHER DISBURSEMENTS $ 1,128,786 $ 1,937,473 $1,364,063 $ 39,036,258
MOR-7 ATTACHMENT CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF MAY 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 215,675 26,870 (91,931) 13,416 164,030 =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 893,963 228,655 -- 65,466 1,188,084 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) -- -- 92,000 2,069 94,069 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 893,963 228,655 92,000 67,535 1,282,153 --------------- --------------- --------------- --------------- --------------- (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 -- 23,843 23,843 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING -- -- -- 18. OTHER (attach list) 1,108,638 255,425 -- -- 1,364,063 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,108,638 255,425 -- 23,843 1,387,906 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 1,108,638 255,425 -- 23,843 1,387,906 =============== =============== =============== =============== =============== 22. NET CASH FLOW (214,675) (26,770) 92,000 43,692 (105,753) 23. CASH - END OF MONTH (MOR-2) 1,000 100 69 57,108 58,277
MOR-7 * Applies to Individuals debtor's only. CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF MAY 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 92,000 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 $ -- rec'd in error and to be returned in Oct 01. TOTAL OTHER RECEIPTS $ -- $ -- $ 92,000 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals -- cash disbursements re Inter company AP -- CIT revolver cash sweep 1,108,638 255,425 Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 1,108,638 $ 255,425 $ -- CIBC OTHER CASH RECEIPTS AND 77-01713 DISBURSEMENTS: Checking Total - --------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 8 $ 8 401(k) Plan Refund -- Advance from Parent company - Sterling Chemicals 92,000 Miscellaneous 2,061 2,061 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 -- rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ 2,069 $ 94,069 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals -- -- cash disbursements re Inter company AP -- -- CIT revolver cash sweep 1,364,063 Capital contribution to SPCUS -- TOTAL OTHER DISBURSEMENTS $ -- $ 1,364,063
MOR-7 ATTACHMENT CASE NAME: Sterling Canada, Inc. CASE NUMBER: 01-37810-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF MAY 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 $ 109 $ 1,209 $ 57,107 $ 58,317 DEPOSIT IN TRANSIT -- -- OUTSTANDING CHECKS (40) (40) -- (40) ADJUSTED BANK BALANCE $ 1,000 $ 100 $ 69 $ 1,169 $ 57,107 $ 58,277 BEGINNING CASH - PER BOOKS $ 215,675 $ 26,870 $ (91,931) $ 150,614 $ 13,415 $ 164,030 RECEIPTS 893,963 228,655 92,000 1,214,618 67,535 1,282,153 TRANSFERS BETWEEN ACCOUNTS -- -- -- -- (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (1,108,638) (255,425) -- (1,364,063) (23,843) $ (1,387,906) ENDING CASH - PER BOOKS $ 1,000 $ 100 $ 69 $ 1,169 $ 57,107 $ 58,277
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 Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 FILING TO /COMP TYPE (2) DATE - ------------------------------------------------------------------------------------------------------------------------------------ 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 FILING TO NAME/ORDER DATE DATE - -------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.7 9 h98536exv99w7.txt MONTHLY OPERATING REPORT FOR STERLING PULP CHEM US EXHIBIT 99.7 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING PULP CHEMICALS US, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37811-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: MAY YEAR: 2002
MONTH 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 - -------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $285,909 $288,348 $328,152 $239,252 $ 286,617 $ 365,854 $ 332,686 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $(74,164) $(77,489) $(81,177) $(59,026) $ (49,004) $ (54,804) $ (62,294) NET INCOME (LOSS) (MOR-6) $(74,164) $(77,489) $(81,177) $(59,026) $ (49,004) $ (54,804) $ (62,294) PAYMENTS TO INSIDERS (MOR-9) $ - $ - $ - $ - $ - $ - $ - PAYMENTS TO PROFESSIONALS (MOR-9) $ - $ - $ - $ - $ - $ - $ - TOTAL DISBURSEMENTS (MOR-7)(1) $ - $ - $ - $ - $ - $ - $ - (1) Excludes intercompany transfers as follows: $ - $ - $ - $ - $ - $ - $ -
***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 proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- 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 PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 12 6/19/02 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 12 6/19/02
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 MAY 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 $ 1,369 $ - $ 156 Trade accounts receivable, net - 76,214 85 2,736 Other Receivables - 685 - 2,695 Due from affiliates 1,205 24,502 13,777 - Inventories - 31,798 - 8,584 Prepaid expenses 33 3,400 - 28 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 137,968 13,862 14,199 Property, plant and equipment, net - 120,474 2,823 5,930 Deferred income taxes - - - - Investments-Third Party - 1,500 5,232 - Investments in Subs 35,060 94,735 - - Other assets 865 35,093 - 1,233 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 389,770 $ 21,917 $ 21,362 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 177 187,581 1,433 6,711 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 38,926 - 9,776 Unsecured debt 186,538 262,270 1,110 70,426 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 (1,046) (58,958) 4,040 (8,521) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,678) (509,798) 19,374 (138,576) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,678) (512,335) 19,374 (138,576) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 389,770 $ 21,917 $ 21,362 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 58 $ - $ - Trade accounts receivable, net - 2,454 873 4,425 Other Receivables - 4,397 - - Due from affiliates 3,301 56,857 966 8,588 Inventories - - 181 1,936 Prepaid expenses - - - 516 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,301 63,766 2,020 15,465 Property, plant and equipment, net - - - 41,949 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,570 3,233 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,871 $ 362,810 $ 3,539 $ 57,414 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 25,211 962 2,817 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 624 11,472 - - Unsecured debt 1,123 265,052 170 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 (382) 1,121 (736) (10,821) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 397 (6,077) 2,407 (7,746) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 397 (6,077) 2,407 (7,746) TOTAL LIABILITIES AND EQUITY $ 5,871 $ 362,810 $ 3,539 $ 57,414 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,754 Trade accounts receivable, net - 86,787 Other Receivables - 7,777 Due from affiliates (108,901) 295 Inventories - 42,499 Prepaid expenses - 3,977 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (108,901) 143,089 Property, plant and equipment, net - 171,176 Deferred income taxes - - Investments-Third Party - 6,732 Investments in Subs (381,672) 45,453 Other assets (1) 42,993 -------------------------------- TOTAL ASSETS $(490,574) $ 409,443 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,901) 180,066 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (10,400) 50,398 Unsecured debt (133,130) 715,902 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 - (75,303) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (856,947) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,484) TOTAL LIABILITIES AND EQUITY $(490,574) $ 409,443 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
-------------------------------------------------------------------------------------------- Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 -------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 571 $ 505 $ 515 $ 949 $ 367 $ 518 $ 936 ROYALTY AND REVENUE PAYABLE -- -- NOTES PAYABLE - INSURANCE -- -- TAX PAYABLE: -- -- Federal Payroll Taxes -- -- State Payroll & Sales -- -- Ad Valorem Taxes -- -- Other Taxes -- -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ $ SECURED DEBT POST-PETITION -- -- ACCRUED INTEREST PAYABLE -- -- *ACCRUED PROFESSIONAL FEES: -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 98 127 133 114 94 19 25 2. Lease Operating Expenses/Capital -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 669 $ 632 $ 648 $ 1,063 $ 461 $ 537 $ 962 ===================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH MAY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 70,934 $ 70,934 $ -- $ -- $ -- $ -- 31-60 687 687 -- -- -- -- 61-90 458 458 -- -- -- -- 91 + 28,145 28,145 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $100,224 $100,224 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MAY 31, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, MONTH HOLDINGS, INC. INC. ENERGY, INC. INC. ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 45,186,158 $ 185,170 $ 1,769,204 TOTAL COST OF REVENUES -- 37,495,451 185,170 1,831,716 GROSS PROFIT $ -- $ 7,690,707 $ -- $ (62,512) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 12,965 $ 1,075,324 $ -- $ 117,882 Insiders Compensation -- 78,911 -- -- Professional Fees -- 1,509,681 -- -- Other (Earnings in Joint Venture) -- 69,703 (69,703) -- TOTAL OPERATING EXPENSE $ 12,965 $ 2,733,619 $ (69,703) $ 117,882 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (12,965) $ 4,957,088 $ 69,703 $ (180,394) INTEREST EXPENSE (includes amort of debt fees) (177) 2,199,007 -- 614,434 DEPRECIATION -- 1,944,379 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (177) $ 4,143,386 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (12,788) $ 813,702 $ 69,703 $ (842,445) INCOME TAXES -- -- 18,000 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (12,788) $ 813,702 $ 51,703 $ (842,445) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP MONTH INT'L, INC. INC. CHEMICALS US, INC. ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,059,266 $ 332,686 TOTAL COST OF REVENUES -- 54,852 475,900 GROSS PROFIT $ 83,333 $ 1,004,414 $ (143,214) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,121 $ 254,365 $ (80,920) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,121 $ 254,365 $ (80,920) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 67,212 $ 750,049 $ (62,294) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,575 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,370 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,547 $ 103,679 $ (62,294) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,547 $ 103,679 $ (62,294) ============================================================================================================== STERLING PULP DEBTORS MONTH CHEMICALS, INC. ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,292,539 $ (83,333) $ 51,825,023 TOTAL COST OF REVENUES 1,981,822 (83,333) 41,941,578 GROSS PROFIT $ 1,310,717 $ -- $ 9,883,445 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,086 $ (558,861) 1,461,962 Insiders Compensation -- -- 78,911 Professional Fees -- -- 1,509,681 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,086 $ (558,861) $ 3,050,554 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 685,631 $ 558,861 6,832,891 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,570,365 DEPRECIATION 326,099 -- 2,826,890 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,099 $ 558,861 $ 6,397,255 ================================================================================================================= NET INCOME BEFORE TAXES $ 359,532 $ -- $ 435,636 INCOME TAXES -- -- 18,000 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 359,532 $ -- $ 417,636 =================================================================================================================
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 PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
==================================================================================================================================== CASH RECEIPTS AND 11/30/01 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 FILING TO DISBURSEMENTS DATE - ------------------------------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- RECEIPTS: - ----------------------------------------------------------------------------------------------------------------------------------- 2. CASH SALES $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 3. COLLECTION OF ACCOUNTS RECEIVABLE - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. LOANS & ADVANCES (attach list) - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. SALE OF ASSETS - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. OTHER (attach list) - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL RECEIPTS $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- (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 $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 8. PAYROLL TAXES PAID - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 9. SALES, USE & OTHER TAXES PAID - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 10. SECURED/RENTAL/LEASES - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 11. UTILITIES - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 12. INSURANCE - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 13. INVENTORY PURCHASES - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 14. VEHICLE EXPENSES - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 15. TRAVEL & ENTERTAINMENT - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 16. REPAIRS, MAINTENANCE & SUPPLIES - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 17. ADMINISTRATIVE & SELLING - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 18. OTHER (attach list) - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL DISBURSEMENTS FROM OPERATIONS $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 19. PROFESSIONAL FEES $ - - $ - $ - $ - - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 20. U.S. TRUSTEE FEES - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 21. OTHER REORGANIZATION EXPENSES (attach list) - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL DISBURSEMENTS $ - - $ - $ - $ - - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 22. NET CASH FLOW $ - - $ - $ - $ - - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 23. CASH - END OF MONTH (MOR-2) $ - - $ - $ - $ - - $ - $ - ===================================================================================================================================
MOR-7 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
================================================================================================================================ OTHER CASH RECEIPTS AND 11/30/01 12/13/-01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 FILING TO DISBURSEMENTS: DATE - -------------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: - -------------------------------------------------------------------------------------------------------------------------------- Interest Income $ - $ - $ - $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- 401(k) Plan Refund - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Cobra Insurance Payment - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Miscellaneous - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Emission Credits - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER RECEIPTS $ - $ - $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- 18. OTHER DISBURSEMENTS: - -------------------------------------------------------------------------------------------------------------------------------- Capital Expenditures $ - $ - $ - $ - - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- Interest Payment - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Restricted Cash - Bond Funding - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Pre-petition checks voided in current period - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER DISBURSEMENTS $ - $ - $ - $ - $ - $ - $ - $ - ================================================================================================================================
MOR-7 ATTACHMENT CASE NAME: Sterling Pulp Chemicals US, Inc. CASE NUMBER: 01-37811-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF MAY 2002 --------------------------------- =========================================================================================================================== BANK NAME N/A - --------------------------------------------------------------------------------------------------------------------------- ACCOUNT NUMBER - --------------------------------------------------------------------------------------------------------------------------- ACCOUNT TYPE TOTAL - ------------ ----- - --------------------------------------------------------------------------------------------------------------------------- BANK BALANCE $ - - --------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT - - --------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS - - --------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ - $ - $ - $ - $ - $ - $ - $ - $ - - --------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOS $ - - --------------------------------------------------------------------------------------------------------------------------- RECEIPTS - - --------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS - - --------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - - --------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - - --------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS - - --------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ - $ - $ - $ - $ - $ - $ - $ - $ - ===========================================================================================================================
Note: Bank statements have not been received in time to complete this report. Future reports will include reconciliations for the prior month. MOR-8 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-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.)
=================================================================================================================================== Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE - ----------------------------------------------------------------------------------------------------------------------------------- 1. $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 2. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 3. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 7. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 8. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 9. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INSIDERS (MOR-1) $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================================================
=================================================================================================================================== Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 FILING TO PROFESSIONALS DATE NAME/ORDER DATE - ----------------------------------------------------------------------------------------------------------------------------------- 1. $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 2. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 3. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL PROFESSIONALS (MOR-1) $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================================================
(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 EX-99.8 10 h98536exv99w8.txt MONTHLY OPERATING REPORT FOR STERLING PULP CHEM EXHIBIT 99.8 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING PULP CHEMICALS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37812-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: MAY YEAR: 2002
11/30/01 12/31/01 MONTH Revised Revised - -------------------------------------------------------------------- REVENUES (MOR-6) $2,729,574 $3,383,414 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 438,056 $ 686,339 NET INCOME (LOSS) (MOR-6) $ 32,982 $ 281,280 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $5,292,706 $4,334,706 (1) Excludes intercompany transfers as follows: $3,196,417 $1,107,530 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 MONTH Revised Revised Revised - --------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $3,335,583 $3,227,039 $3,175,608 $3,332,627 $3,292,539 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 639,912 $ 573,082 $ 561,378 692,530 $ 685,631 NET INCOME (LOSS) (MOR-6) $ 232,478 $ 245,985 $ 236,593 365,040 $ 359,532 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $6,098,766 $4,778,478 $4,967,073 $5,480,057 $5,781,161 (1) Excludes intercompany transfers as follows: $1,160,015 $ -- $2,038,617 $ 773,455 $ --
***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 proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - ------------------------------------------------------------------------------- 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 PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 14 6/19/02 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 6/19/02
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 MAY 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 $ 1,369 $ - $ 156 Trade accounts receivable, net - 76,214 85 2,736 Other Receivables - 685 - 2,695 Due from affiliates 1,205 24,502 13,777 - Inventories - 31,798 - 8,584 Prepaid expenses 33 3,400 - 28 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 137,968 13,862 14,199 Property, plant and equipment, net - 120,474 2,823 5,930 Deferred income taxes - - - - Investments-Third Party - 1,500 5,232 - Investments in Subs 35,060 94,735 - - Other assets 865 35,093 - 1,233 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 389,770 $ 21,917 $ 21,362 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 177 187,581 1,433 6,711 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 38,926 - 9,776 Unsecured debt 186,538 262,270 1,110 70,426 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 (1,046) (58,958) 4,040 (8,521) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - (1) - - ------------------------------------------------------------------------------------ (176,678) (509,798) 19,374 (138,576) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,678) (512,335) 19,374 (138,576) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 389,770 $ 21,917 $ 21,362 ====================================================================================
------------------------------------------------------------------------------------------ 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 $ - $ 58 $ - $ - Trade accounts receivable, net - 2,454 873 4,425 Other Receivables - 4,397 - - Due from affiliates 3,301 56,857 966 8,588 Inventories - - 181 1,936 Prepaid expenses - - - 516 Deferred income tax benefit - - - - ----------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,301 63,766 2,020 15,465 Property, plant and equipment, net - - - 41,949 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,519 - Other assets 2,570 3,233 - - ---------------------------------------------------------------------------------- TOTAL ASSETS $ 5,871 $ 362,810 $ 3,539 $ 57,414 ================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 25,211 962 2,817 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 624 11,472 - - Unsecured debt 1,123 265,052 170 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 (382) 1,121 (736) (10,821) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - ---------------------------------------------------------------------------------- 397 (6,077) 2,407 (7,746) Treasury stock at cost - - - - ---------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 397 (6,077) 2,407 (7,746) TOTAL LIABILITIES AND EQUITY $ 5,871 $ 362,810 $ 3,539 $ 57,414 ==================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,754 Trade accounts receivable, net - 86,787 Other Receivables - 7,777 Due from affiliates (108,901) 295 Inventories - 42,499 Prepaid expenses - 3,977 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (108,901) 143,089 Property, plant and equipment, net - 171,176 Deferred income taxes - - Investments-Third Party - 6,732 Investments in Subs (381,672) 45,453 Other assets (1) 42,993 -------------------------------- TOTAL ASSETS $(490,574) $ 409,443 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,901) 180,066 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (10,400) 50,398 Unsecured debt (133,130) 715,902 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 - (75,303) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - (1) -------------------------------- (40,250) (856,947) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,250) (859,484) TOTAL LIABILITIES AND EQUITY $(490,574) $ 409,443 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
---------------------------------------------------------------------------------------------- Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 ---------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 308 $ 1,088 $ 1,438 2,652 $ 1,043 $ 1,242 $ 2,368 ROYALTY AND REVENUE PAYABLE -- -- NOTES PAYABLE - INSURANCE -- -- TAX PAYABLE: -- Federal Payroll Taxes -- -- State Payroll & Sales -- -- Ad Valorem Taxes -- -- Other Taxes 102 129 155 100 120 113 27 TOTAL TAXES PAYABLE $ 102 $ 129 $ 155 $ 100 $ 120 $ 113 $ 27 SECURED DEBT POST-PETITION -- -- ACCRUED INTEREST PAYABLE -- -- *ACCRUED PROFESSIONAL FEES: -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 346 487 360 321 374 354 422 2. Lease Operating Expenses/Capital -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 756 $ 1,703 $ 1,953 $ 3,073 $ 1,537 $ 1,709 $ 2,817 ====================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH MAY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $224,715 $ 214,369 $ 98 $ 407 $ 4,723 $ 5,118 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 70,934 $ 70,934 $ -- $ -- $ -- $ -- 31-60 687 687 -- -- -- -- 61-90 458 458 -- -- -- -- 91 + 28,145 28,145 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $100,224 $100,224 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 MAY 31, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, MONTH HOLDINGS, INC. INC. ENERGY, INC. INC. ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 45,186,158 $ 185,170 $ 1,769,204 TOTAL COST OF REVENUES -- 37,495,451 185,170 1,831,716 GROSS PROFIT $ -- $ 7,690,707 $ -- $ (62,512) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 12,965 $ 1,075,324 $ -- $ 117,882 Insiders Compensation -- 78,911 -- -- Professional Fees -- 1,509,681 -- -- Other (Earnings in Joint Venture) -- 69,703 (69,703) -- TOTAL OPERATING EXPENSE $ 12,965 $ 2,733,619 $ (69,703) $ 117,882 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (12,965) $ 4,957,088 $ 69,703 $ (180,394) INTEREST EXPENSE (includes amort of debt fees) (177) 2,199,007 -- 614,434 DEPRECIATION -- 1,944,379 -- 47,617 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ (177) $ 4,143,386 $ -- $ 662,051 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (12,788) $ 813,702 $ 69,703 $ (842,445) INCOME TAXES -- -- 18,000 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (12,788) $ 813,702 $ 51,703 $ (842,445) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP MONTH INT'L, INC. INC. CHEMICALS US, INC. ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 1,059,266 $ 332,686 TOTAL COST OF REVENUES -- 54,852 475,900 GROSS PROFIT $ 83,333 $ 1,004,414 $ (143,214) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 16,121 $ 254,365 $ (80,920) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 16,121 $ 254,365 $ (80,920) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 67,212 $ 750,049 $ (62,294) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,575 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,370 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 6,547 $ 103,679 $ (62,294) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 6,547 $ 103,679 $ (62,294) ============================================================================================================== STERLING PULP DEBTORS MONTH CHEMICALS, INC. ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,292,539 $ (83,333) $ 51,825,023 TOTAL COST OF REVENUES 1,981,822 (83,333) 41,941,578 GROSS PROFIT $ 1,310,717 $ -- $ 9,883,445 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,086 $ (558,861) 1,461,962 Insiders Compensation -- -- 78,911 Professional Fees -- -- 1,509,681 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,086 $ (558,861) $ 3,050,554 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 685,631 $ 558,861 6,832,891 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,570,365 DEPRECIATION 326,099 -- 2,826,890 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,099 $ 558,861 $ 6,397,255 ================================================================================================================= NET INCOME BEFORE TAXES $ 359,532 $ -- $ 435,636 INCOME TAXES -- -- 18,000 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 359,532 $ -- $ 417,636 =================================================================================================================
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 PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
======================================================================================================== CASH RECEIPTS AND DISBURSEMENTS Nov-01 Dec-01 Jan-02 Feb-02 - ----------------------------------------------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ 238,608 $ (13,646) $ 147,113 $ 50,128 ---------- ---------- ---------- ---------- RECEIPTS: 2. CASH SALES $ -- $ -- $ -- ---------- ---------- ---------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,652,571 2,431,379 4,683,780 2,872,054 ---------- ---------- ---------- ---------- 4. LOANS & ADVANCES (attach list) -- -- -- ---------- ---------- ---------- 5. SALE OF ASSETS -- -- -- ---------- ---------- ---------- 6. OTHER (attach list) 5,584,297 3,171,616 2,478,016 1,810,427 ---------- ---------- ---------- ---------- TOTAL RECEIPTS $8,236,868 $5,602,995 $7,161,796 $4,682,481 ---------- ---------- ---------- ---------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A ---------- ---------- ---------- DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- ---------- ---------- ---------- 8. PAYROLL TAXES PAID -- -- -- ---------- ---------- ---------- 9. SALES, USE & OTHER TAXES PAID -- -- 906 ---------- ---------- ---------- 10. SECURED/RENTAL/LEASES 4,558 1,472 669 680 ---------- ---------- ---------- ---------- 11. UTILITIES 1,703,174 1,118,571 682,974 1,207,375 ---------- ---------- ---------- ---------- 12. INSURANCE -- -- -- -- ---------- ---------- ---------- ---------- 13. INVENTORY PURCHASES 318,099 296,353 289,263 245,145 ---------- ---------- ---------- ---------- 14. VEHICLE EXPENSES -- -- 142 -- ---------- ---------- ---------- ---------- 15. TRAVEL & ENTERTAINMENT 3,731 2,238 2,751 2,334 ---------- ---------- ---------- ---------- 16. REPAIRS, MAINTENANCE & SUPPLIES 141,233 61,693 94,732 106,723 ---------- ---------- ---------- ---------- 17. ADMINISTRATIVE & SELLING 238,024 131,898 228,742 219,941 ---------- ---------- ---------- ---------- 18. OTHER (attach list) 6,080,303 3,830,011 5,959,508 2,995,373 ---------- ---------- ---------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS $8,489,123 $5,442,236 $7,258,781 $4,778,478 ---------- ---------- ---------- ---------- 19. PROFESSIONAL FEES $ -- $ -- $ -- ---------- ---------- ---------- 20. U.S. TRUSTEE FEES -- -- -- ---------- ---------- ---------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ---------- ---------- ---------- TOTAL DISBURSEMENTS $8,489,123 $5,442,236 $7,258,781 $4,778,478 ---------- ---------- ---------- ---------- 22. NET CASH FLOW $ (252,254) $ 160,759 $ (96,985) $ (95,997) ---------- ---------- ---------- ---------- 23. CASH - END OF MONTH (MOR-2) $ (13,646) $ 147,113 $ 50,128 $ (45,869) ========== ========== ========== ========== ============================================================================================================== CASH RECEIPTS AND FILING TO DISBURSEMENTS Mar-02 Apr-02 May-02 DATE -------------------------------------------------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ (45,869) $ (87,281) $ 48,725 $ 308,953 ------------ ----------- ----------- ----------- RECEIPTS: 2. CASH SALES $ $ -- $ -- $ -- ----------- ----------- ----------- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,070,216 3,547,110 3,163,218 32,721,829 ----------- ----------- ----------- ----------- 4. LOANS & ADVANCES (attach list) -- -- -- ----------- ----------- ----------- ----------- 5. SALE OF ASSETS -- -- -- ----------- ----------- ----------- ----------- 6. OTHER (attach list) 3,894,062 2,842,408 2,489,971 30,535,800 ----------- ----------- ----------- ----------- TOTAL RECEIPTS $ 6,964,278 $ 6,389,518 $ 5,653,189 $63,257,629 ----------- ----------- ----------- ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A ----------- ----------- ----------- ----------- DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- $ -- ------------ ----------- ----------- ----------- 8. PAYROLL TAXES PAID -- -- -- -- ------------ ----------- ----------- ----------- 9. SALES, USE & OTHER TAXES PAID 700 434 -- 2,040 ------------ ----------- ----------- ----------- 10. SECURED/RENTAL/LEASES 1,070,005 552 6,432 1,094,106 ------------ ----------- ----------- ----------- 11. UTILITIES -- 1,202,470 1,773,292 11,697,335 ------------ ----------- ----------- ----------- 12. INSURANCE 269,741 -- -- 269,741 ------------ ----------- ----------- ----------- 13. INVENTORY PURCHASES 46 255,526 254,505 2,390,154 ------------ ----------- ----------- ----------- 14. VEHICLE EXPENSES 126 -- -- 268 ------------ ----------- ----------- ----------- 15. TRAVEL & ENTERTAINMENT 130,331 265 6,628 158,572 ------------ ----------- ----------- ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 198,980 92,812 163,351 1,148,990 ------------ ----------- ----------- ----------- 17. ADMINISTRATIVE & SELLING 209,070 220,698 1,933,944 ------------ ----------- ----------- ----------- 18. OTHER (attach list) 5,335,761 4,492,383 3,356,255 44,950,680 ------------ ----------- ----------- ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 7,005,690 $ 6,253,512 $ 5,781,161 $63,645,830 ------------ ----------- ----------- ----------- 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- ------------ ----------- ----------- ----------- 20. U.S. TRUSTEE FEES -- -- -- -- ------------ ----------- ----------- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- ------------ ----------- ----------- ----------- TOTAL DISBURSEMENTS $ 7,005,690 $ 6,253,512 $ 5,781,161 $63,645,830 ------------ ----------- ----------- ----------- 22. NET CASH FLOW $ (41,412) $ 136,006 $ (127,973) $ (388,201) ------------ ----------- ----------- ----------- 23. CASH - END OF MONTH (MOR-2) $ (87,281) $ 48,725 $ (79,248) $ (79,248) ============ =========== =========== ===========
MOR-7 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
==================================================================================================================================== OTHER CASH RECEIPTS AND Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 DISBURSEMENTS: - ------------------------------------------------------------------------------------------------------------------------------------ 6.OTHER RECEIPTS: Interest Income $ -- $ -- $ -- $ -- $ $ $ -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 401(k) Plan Refund -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cobra Insurance Payment -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Miscellaneous -- -- -- -- 73 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Emission Credits -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Trade AR receipts of an affiliated co. SPC LTD 40,880 223,586 36,733 43,427 9,445 265,953 147,898 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals 2,347,000 1,840,500 1,318,000 1,767,000 1,846,000 1,788,000 2,342,000 cash receipts re Inter company AR 3,196,417 1,107,530 927,448 -- 2,038,617 788,455 Capital Contribution from SPCUS 195,835 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER RECEIPTS $5,584,297 $3,171,616 $2,478,016 $1,810,427 $3,894,062 $2,842,408 $2,489,971 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 18.OTHER DISBURSEMENTS: Capital Expenditures $ 39,534 $ 106,606 $ 45,835 $ 73,428 $ 150,489 $ 45,333 $ 13,337 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Interest Payment -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Restricted Cash - Bond Funding -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Pre-petition checks voided in current period -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Trade AR receipts of an affiliated co. SPC LTD -- -- 36,733 -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- CIT revolver cash sweep 2,844,352 2,615,871 4,753,659 2,921,945 3,146,655 3,673,595 3,342,918 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS 1,272,914 237,864 -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- cash disbursements re Inter company AP 1,923,503 869,666 1,123,282 -- 2,038,617 773,455 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $6,080,303 $3,830,011 $5,959,508 $2,995,373 $5,335,761 $4,492,383 $3,356,255 ========== ========== ========== ========== ========== ========== ==========
========================================================= OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: DATE - --------------------------------------------------------- 6.OTHER RECEIPTS: Interest Income $ -- ----------- 401(k) Plan Refund -- ----------- Cobra Insurance Payment -- ----------- Miscellaneous 73 ----------- Emission Credits -- ----------- Trade AR receipts of an affiliated co. SPC LTD 1,336,479 ----------- Cash advance from Sterling Chemicals 19,655,500 cash receipts re Inter company AR Capital Contribution from SPCUS ----------- TOTAL OTHER RECEIPTS $20,992,052 ----------- 18.OTHER DISBURSEMENTS: Capital Expenditures $628,940.92 ----------- Interest Payment -- ----------- Restricted Cash - Bond Funding -- ----------- Pre-petition checks voided in current period -- ----------- Trade AR receipts of an affiliated co. SPC LTD 632,768 ----------- CIT revolver cash sweep -- ----------- Return of investment to SPCUS 1,591,847 ----------- cash disbursements re Inter company AP ----------- TOTAL OTHER DISBURSEMENTS $ 2,853,556 ===========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF MAY 2002
======================================================================================================================== BANK ONE CHASE MANHATTEN CHASE MANHATTEN FIRST STATE BANK CASH RECEIPTS AND 5589665 001-00546119 001-03317146 011-077-220-1 DISBURSEMENTS LOCK BOX GENERAL CHECKING CHECKING ------------------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ 140,468 $ 100 $ (117,723) $ 25,881 $ -- ------------ --------------- --------------- ---------------- ------ RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,723,517 439,701 -- ------------ --------------- --------------- ---------------- ------ 4. LOANS & ADVANCES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 5. SALE OF ASSETS -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 6. OTHER (attach list) 147,898 -- 2,342,073 -- -- ------------ --------------- --------------- ---------------- ------ TOTAL RECEIPTS $ 2,871,415 $ 439,701 $ 2,342,073 $ -- $ -- ------------ --------------- --------------- ---------------- ------ (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 -- ------------ --------------- --------------- ---------------- ------ 10. SECURED/RENTAL/LEASES 6,432 -- -- ------------ --------------- --------------- ---------------- ------ 11. UTILITIES 1,773,292 -- -- ------------ --------------- --------------- ---------------- ------ 12. INSURANCE -- -- -- ------------ --------------- --------------- ---------------- ------ 13. INVENTORY PURCHASES 254,505 -- -- ------------ --------------- --------------- ---------------- ------ 14. VEHICLE EXPENSES -- -- -- ------------ --------------- --------------- ---------------- ------ 15. TRAVEL & ENTERTAINMENT 6,628 -- -- ------------ --------------- --------------- ---------------- ------ 16. REPAIRS, MAINTENANCE & SUPPLIES 162,526 825 -- ------------ --------------- --------------- ---------------- ------ 17. ADMINISTRATIVE & SELLING 218,368 2,330 -- ------------ --------------- --------------- ---------------- ------ 18. OTHER (attach list) 2,903,217 439,701 7,537 5,800 -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,903,217 $ 439,701 $ 2,429,288 $ 8,955 $ -- ------------ --------------- --------------- ---------------- ------ 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 20. U.S. TRUSTEE FEES -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS $ 2,903,217 $ 439,701 $ 2,429,288 $ 8,955 $ -- ------------ --------------- --------------- ---------------- ------ 22. NET CASH FLOW $ (31,802) $ -- $ (87,215) $ (8,955) $ -- ------------ --------------- --------------- ---------------- ------ 23. CASH - END OF MONTH (MOR-2) $ 108,666 $ 100 $ (204,938) $ 16,926 $ -- ============ =============== =============== ================ ====== =================================================================== CASH RECEIPTS AND DISBURSEMENTS TOTAL ------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ 48,725 ----------- RECEIPTS: 2. CASH SALES $ -- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,163,218 ----------- 4. LOANS & ADVANCES (attach list) -- ----------- 5. SALE OF ASSETS -- ----------- 6. OTHER (attach list) 2,489,971 ----------- TOTAL RECEIPTS $ 5,653,189 ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A ----------- DISBURSEMENTS: 7. NET PAYROLL $ -- ----------- 8. PAYROLL TAXES PAID -- ----------- 9. SALES, USE & OTHER TAXES PAID -- ----------- 10. SECURED/RENTAL/LEASES 6,432 ----------- 11. UTILITIES 1,773,292 ----------- 12. INSURANCE -- ----------- 13. INVENTORY PURCHASES 254,505 ----------- 14. VEHICLE EXPENSES -- ----------- 15. TRAVEL & ENTERTAINMENT 6,628 ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 163,351 ----------- 17. ADMINISTRATIVE & SELLING 220,698 ----------- 18. OTHER (attach list) 3,356,255 ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 5,781,161 ----------- 19. PROFESSIONAL FEES $ -- ----------- 20. U.S. TRUSTEE FEES -- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- ----------- TOTAL DISBURSEMENTS $ 5,781,161 ----------- 22. NET CASH FLOW $ (127,972) ----------- 23. CASH - END OF MONTH (MOR-2) $ (79,247) ===========
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF MAY 2002
============================================================================================================================= Chase Chase First State Bank One Manhattan Manhattan Bank OTHER CASH RECEIPTS AND 5589665 001-00546119 001-03317146 011-077-220-1 DISBURSEMENTS: Lock Box General Checking Checking Total - ----------------------------------------------------------------------------------------------------------------------------- 6.OTHER RECEIPTS: Interest Income $ -- $ -- $ -- $ $ -- ---------- ---------- ---------- ---------- ---------- 401(k) Plan Refund -- ---------- ---------- ---------- ---------- ---------- Cobra Insurance Payment -- ---------- ---------- ---------- ---------- ---------- Miscellaneous 73 73 ---------- ---------- ---------- ---------- ---------- Transfer Between Accounts -- -- -- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals -- 2,342,000 -- 2,342,000 Funds belonging to Sterling Pulp Chemicals Ltd. 147,898 -- -- -- 147,898 rec'd in error and to be returned in Sept 01. -- cash receipts re Inter company AR -- -- -- ---------- ---------- ---------- ---------- ---------- Return of investment from SPCUS -- -- TOTAL OTHER RECEIPTS $ 147,898 $ -- $2,342,073 $ -- $2,489,971 ---------- ---------- ---------- ---------- ---------- 18.OTHER DISBURSEMENTS: Transfer Between Accounts -- -- Capital Expenditures $ $ $ 7,537 $ 5,800 $ 13,337 ---------- ---------- ---------- ---------- ---------- Trade AR receipts of an affiliated co. SPC LTD -- -- ---------- ---------- ---------- ---------- ---------- Pre-petition checks voided in current period -- ---------- ---------- ---------- ---------- ---------- Advance to Parent company - Sterling Chemicals -- -- ---------- ---------- ---------- ---------- ---------- cash disbursements re Inter company AP -- -- ---------- ---------- ---------- ---------- ---------- CIT revolver cash sweep 2,903,217 439,701 3,342,918 ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS -- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $2,903,217 $ 439,701 $ 7,537 $ 5,800 $3,356,255 ========== ========== ========== ========== ==========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11 CASH ACCOUNT RECONCILIATION MONTH OF MAY 2002 --------------------------------- BANK NAME Bank One Chase Manhattan Chase Manhattan First State Bank - ---------------------------------------------------------------------------------------------------------------------------------- ACCOUNT NUMBER 5589665 001-00546119 001-03317146 Consolidated 011-077-220-1 - ---------------------------------------------------------------------------------------------------------------------------------- ACCOUNT TYPE Lock Box General Checking Checking TOTAL - ---------------------------------------------------------------------------------------------------------------------------------- BANK BALANCE $ 108,666 $ 100 $ 1,332 $ 110,098 $ 23,060 $ 133,158 - ---------------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT 1,764 $ 1,764 1,764 - ---------------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS (208,035) (208,035) (6,134) (214,169) - ---------------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ 108,666 $ 100 $ (204,939) $ (96,173) $ 16,926 $ - $ - $ (79,247) - ---------------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOKS $ 140,468 $ 100 $ (117,724) $ 22,844) $ 25,881 48,725 - ---------------------------------------------------------------------------------------------------------------------------------- RECEIPTS 2,871,415 439,701 2,342,073 5,653,189 - 5,653,189 - ---------------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS - - - - ---------------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - - ---------------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - - ---------------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS (2,903,217) (439,701) (2,429,288) (5,772,206) (8,955) (5,781,161) - ---------------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ 108,666 $ 100 $ (204,939) $ (96,173) $ 16,926 $ - $ - $ (79,247) ==================================================================================================================================
MOR-8 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-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.)
============================================================================================================================= Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE 1. $-- $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 7. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 8. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 9. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- TOTAL INSIDERS (MOR-1) $-- $-- $-- $-- $-- $-- $-- $-- === === === === === === === ===
============================================================================================================================= Nov-2001 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 FILING TO PROFESSIONALS DATE NAME/ORDER 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 -----END PRIVACY-ENHANCED MESSAGE-----