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