-----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, RdOcjNGjQu5WN2k5jvcWXh0nH6q/bKkUue05rGYL9TCkmSAC0mGZ5ea6Puq8sskO ndoMJLyTR7rzNKOmeUFr9g== 0000950129-02-003771.txt : 20020730 0000950129-02-003771.hdr.sgml : 20020730 20020730150507 ACCESSION NUMBER: 0000950129-02-003771 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20020722 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020730 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: 02714651 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: 02714652 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 h98580e8vk.txt STERLING CHEMICALS HOLDINGS, INC. - 7/22/02 ================================================================================ 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): JULY 22, 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 June 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for June 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for June 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for June 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for June 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for June 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for June 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for June 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 June 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 30, 2002 By: /s/ DAVID G. ELKINS ------------------------------------- David G. Elkins, President STERLING CHEMICALS INC. Date: July 30, 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 June 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for June 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for June 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for June 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for June 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for June 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for June 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for June 2002. EX-99.1 3 h98580exv99w1.txt MONTHLY OPERATING RPT - STERLING CHEMICALS 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: JUNE YEAR: 2002
MONTH 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 - ---------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ -- $ -- $ -- $ -- $ -- $ -- $ -- INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (967) $(51,350) $ (957) $ (960) $(46,778) $(12,965) $ (932) NET INCOME (LOSS) (MOR-6) $(128,714) $(51,166) $ (775) $ (794) $(46,590) $(12,788) $ (932) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ 553,291 $ -- $ -- $ -- $ -- $ -- $170,000 TOTAL DISBURSEMENTS (MOR-7)(1) $ 553,291 $ -- $ -- $ -- $ -- $ -- $170,000 (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 7/19/02 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 7/19/02
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 JUNE 30, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 171 $ 2,128 $ - $ 120 Trade accounts receivable, net - 76,785 71 2,901 Other Receivables - 1,848 - 3,006 Due from affiliates 1,027 25,130 13,785 - Inventories - 35,305 - 8,170 Prepaid expenses 33 6,018 - 96 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,231 147,214 13,856 14,293 Property, plant and equipment, net - 119,003 2,760 5,882 Deferred income taxes - - - - Investments-Third Party - 1,500 5,281 - Investments in Subs 35,060 94,735 - - Other assets 865 34,417 - 1,209 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,156 $ 396,869 $ 21,897 $ 21,384 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 191,570 1,364 7,086 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 41,276 - 10,366 Unsecured debt 186,538 260,286 1,110 70,656 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,047) (56,215) 4,089 (9,719) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,679) (507,054) 19,423 (139,774) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,679) (509,591) 19,423 (139,774) TOTAL LIABILITIES AND EQUITY $ 37,156 $ 396,869 $ 21,897 $ 21,384 ====================================================================================
------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 148 $ - $ - Trade accounts receivable, net - 2,670 864 4,588 Other Receivables - 4,397 - - Due from affiliates 3,384 (3,384) 56,860 630 8,176 Inventories - - 100 1,790 Prepaid expenses - - - 103 Deferred income tax benefit - - - - --------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,384 (3,384) 64,075 1,594 14,657 Property, plant and equipment, net - - - 41,674 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,393 - Other assets 2,547 2,721 - - -------------------------------------------------------------------------------------- TOTAL ASSETS $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ====================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 (413) 24,654 445 1,381 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 662 12,165 - - Unsecured debt 1,123 (2,971) 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 1,392 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (360) 782 (771) (10,303) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - -------------------------------------------------------------------------------------- 419 - (6,416) 2,372 (7,393) Treasury stock at cost - - - - -------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 419 - (6,416) 2,372 (7,393) TOTAL LIABILITIES AND EQUITY $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ======================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,567 Trade accounts receivable, net - 87,879 Other Receivables - 9,251 Due from affiliates (109,506) (514) Inventories - 45,365 Prepaid expenses - 6,250 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (109,506) 150,798 Property, plant and equipment, net - 169,319 Deferred income taxes - - Investments-Third Party - 6,781 Investments in Subs (381,546) 45,453 Other assets (1) 41,758 -------------------------------- TOTAL ASSETS $(491,053) $ 414,109 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,871) 181,704 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,028) 53,441 Unsecured debt (133,138) 714,140 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,122) (546,056) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (73,544) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,123) (855,225) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,123) (857,762) TOTAL LIABILITIES AND EQUITY $(491,053) $ 414,109 ================================
* 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
----------------------------------------------------------------------------------- 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 ----------------------------------------------------------------------------------- (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 JUNE 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 72,397 $ 72,397 $ -- $ -- $ -- $ -- 31-60 922 922 -- -- -- -- 61-90 542 542 -- -- -- -- 91 + 28,457 28,457 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $102,318 $102,318 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JUNE 30, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, HOLDINGS, INC. INC. ENERGY, INC. INC. MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 48,626,030 $ 184,425 $ 1,693,508 TOTAL COST OF REVENUES -- 40,486,413 184,425 2,087,717 GROSS PROFIT $ -- $ 8,139,617 $ -- $ (394,209) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 932 $ 1,540,817 $ -- $ 117,412 Insiders Compensation -- 131,411 -- -- Professional Fees -- 1,350,558 -- -- Other (Earnings in Joint Venture) -- (2,284,592) (49,066) -- TOTAL OPERATING EXPENSE $ 932 $ 738,194 $ (49,066) $ 117,412 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (932) $ 7,401,423 $ 49,066 $ (511,621) INTEREST EXPENSE (includes amort of debt fees) -- 2,697,876 -- 614,434 DEPRECIATION -- 1,955,162 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,653,038 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (932) $ 2,748,385 $ 49,066 $ (1,173,671) INCOME TAXES -- -- 2,334 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (932) $ 2,748,385 $ 46,732 $ (1,173,671) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 617,525 $ 360,103 TOTAL COST OF REVENUES -- 59,458 460,832 GROSS PROFIT $ 83,333 $ 558,067 $ (100,729) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 231,893 $ (65,492) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 231,893 $ (65,492) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 326,174 $ (35,237) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,554 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,349 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (338,175) $ (35,237) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (338,175) $ (35,237) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,272,103 $ (83,333) $ 54,753,694 TOTAL COST OF REVENUES 1,859,446 (83,333) 45,054,958 GROSS PROFIT $ 1,412,657 $ -- $ 9,698,736 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,865 $ (540,881) 1,893,546 Insiders Compensation -- -- 131,411 Professional Fees -- -- 1,350,558 Other (Earnings in Joint Venture) -- -- (2,333,658) TOTAL OPERATING EXPENSE $ 608,865 $ (540,881) $ 1,041,857 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 803,792 $ 540,881 8,656,879 INTEREST EXPENSE (includes amort of debt fees) -- 540,881 4,069,410 DEPRECIATION 326,102 -- 2,837,675 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,102 $ 540,881 $ 6,907,085 ================================================================================================================= NET INCOME BEFORE TAXES $ 477,690 $ -- $ 1,749,794 INCOME TAXES -- -- 2,334 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 477,690 $ -- $ 1,747,460 =================================================================================================================
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 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 DATE - ----------------- --------- --------- ------- ------- -------- --------- --------- ---------- 1. CASH-BEGINNING OF MONTH 723,230 170,226 170,410 170,592 170,758 170,946 171,123 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) 286 184 182 166 188 177 -- 14,043 --------- -------- ------- ------- ------- --------- --------- ---------- TOTAL RECEIPTS 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 553,291 -- -- -- -- -- 170,000 1,375,001 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- --------- -------- ------- ------- ------- --------- --------- ---------- TOTAL DISBURSEMENTS 553,291 -- -- -- -- -- 170,000 1,375,001 ========= ======== ======= ======= ======= ========= ========= ========== 22. NET CASH FLOW (553,005) 184 182 166 188 177 (170,000) (1,360,958) 23. CASH - END OF MONTH (MOR-2) 170,226 170,410 170,592 170,758 170,946 171,123 1,123 1,123
MOR-7 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 DATE ----------------------- ------ ------ ------ ------ -------- ------ ------ --------- 6. OTHER RECEIPTS: Interest Income 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 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 -- 171,123 171,123 =========== ============ ============ 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 =========== ============ ============ 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 -- 170,000 170,000 20. U.S. TRUSTEE FEES -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ----------- ------------ ------------ TOTAL DISBURSEMENTS -- 170,000 170,000 =========== ============ ============ 22. NET CASH FLOW -- (170,000) (170,000) 23. CASH - END OF MONTH (MOR-2) -- 1,123 1,123
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 -- -- -- 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 Holdings, Inc. CASE NUMBER: 01-37805-H-11 CASH ACCOUNT RECONCILIATION MONTH OF JUNE 2002 ---------
Closed BANK NAME Chase Bk of TX Chase Bk of TX ACCOUNT NUMBER 00100547125 0010535021 ACCOUNT TYPE Concentration Concentration TOTAL - -------------- ------------- -------------- ---------- BANK BALANCE $ -- $ 1,123 $ 1,123 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- ADJUSTED BANK BALANCE $ -- $ 1,123 $ -- $ -- $ -- $ -- $ -- $ -- $ 1,123 ============= ============== ====== ====== ====== ====== ====== ====== ========== BEGINNING CASH - PER BOOKS $ -- $ 171,123 $ 171,123 RECEIPTS -- TRANSFERS BETWEEN ACCOUNTS -- (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (170,000) (170,000) ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- ENDING CASH - PER BOOKS $ -- $ 1,123 $ -- $ -- $ -- $ -- $ -- $ -- $ 1,123 ============= ============== ====== ====== ====== ====== ====== ====== ==========
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) Dec-2001 Jan-2002 Feb-02 Mar-02 Apr-2002 May-2002 Jun-2002 DATE - --------------------------------------- -------- -------- -------- ------- -------- -------- -------- ---------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- -------- -------- -------- ------- -------- -------- -------- ---------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======= ======== ======== ======== ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Dec-2001 Jan-2002 Feb-02 Mar-02 Apr-2002 May-2002 Jun-2002 DATE - ------------------------- ----------- -------- ------ ------- -------- -------- -------- ----------- 1. Skadden, Arps, Slate, Meagher & Flom LLP $418,494.62 $553,291.25 $ -- $ -- $ -- $ -- $170,000 $971,785.87 2. Arthur Andersen 233,215.40 -- -- -- -- -- -- 233,215 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- ----------- ----------- ------ ------ ------- ------ -------- ----------- TOTAL PROFESSIONALS (MOR-1) $ 651,710 $ 553,291 $ -- $ -- $ -- $ -- $170,000 $ 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 h98580exv99w2.txt MONTHLY OPERATING RPT - STERLING CHEMICALS, INC. EXHIBIT 99.2 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37806-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: JUNE YEAR: 2002
12/31/01 MONTH Revised - -------------------------------------------------------- REVENUES (MOR-6) $ 18,571,799 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (1,583,651) NET INCOME (LOSS) (MOR-6) $ (5,648,707) PAYMENTS TO INSIDERS (MOR-9) $ 204,995 PAYMENTS TO PROFESSIONALS (MOR-9) $ 683,788 TOTAL DISBURSEMENTS (MOR-7)(1) $ 46,405,192 (1) Excludes intercompany transfers as follows: $ 16,315,773 1/31/02 2/28/02 3/31/02 4/30/02 MONTH Revised Revised Revised Revised 5/31/02 6/30/02 - ------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 20,053,870 $ 20,096,849 $ 21,923,335 $ 42,567,625 $ 45,186,158 $ 48,626,030 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (2,798,067) $ (2,749,269) $ (148,300) $ 5,024,220 $ 4,957,088 $ 7,401,423 NET INCOME (LOSS) (MOR-6) $ (7,180,158) $ (6,872,689) $ (4,363,757) $ 495,693 $ 813,702 $ 2,748,385 PAYMENTS TO INSIDERS (MOR-9) $ 142,597 $ 116,429 $ 150,683 $ 494,281 $ 78,911 $ 131,411 PAYMENTS TO PROFESSIONALS (MOR-9) $ 1,238,773 $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 1,014,508 $ 700,599 TOTAL DISBURSEMENTS (MOR-7)(1) $ 51,372,937 $ 45,245,622 $ 56,865,534 $ 57,893,073 $ 69,069,844 $ 90,769,682 (1) Excludes intercompany transfers as follows: $ 13,719,923 $ 18,261,420 $ 23,396,865 $ 20,186,176 $ 16,157,239 $ 17,490,363
***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, 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 14 7/19/02 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 7/19/02
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 JUNE 30, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 171 $ 2,128 $ - $ 120 Trade accounts receivable, net - 76,785 71 2,901 Other Receivables - 1,848 - 3,006 Due from affiliates 1,027 25,130 13,785 - Inventories - 35,305 - 8,170 Prepaid expenses 33 6,018 - 96 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,231 147,214 13,856 14,293 Property, plant and equipment, net - 119,003 2,760 5,882 Deferred income taxes - - - - Investments-Third Party - 1,500 5,281 - Investments in Subs 35,060 94,735 - - Other assets 865 34,417 - 1,209 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,156 $ 396,869 $ 21,897 $ 21,384 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 191,570 1,364 7,086 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 41,276 - 10,366 Unsecured debt 186,538 260,286 1,110 70,656 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,047) (56,215) 4,089 (9,719) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,679) (507,054) 19,423 (139,774) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,679) (509,591) 19,423 (139,774) TOTAL LIABILITIES AND EQUITY $ 37,156 $ 396,869 $ 21,897 $ 21,384 ====================================================================================
------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 148 $ - $ - Trade accounts receivable, net - 2,670 864 4,588 Other Receivables - 4,397 - - Due from affiliates 3,384 (3,384) 56,860 630 8,176 Inventories - - 100 1,790 Prepaid expenses - - - 103 Deferred income tax benefit - - - - --------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,384 (3,384) 64,075 1,594 14,657 Property, plant and equipment, net - - - 41,674 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,393 - Other assets 2,547 2,721 - - -------------------------------------------------------------------------------------- TOTAL ASSETS $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ====================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 (413) 24,654 445 1,381 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 662 12,165 - - Unsecured debt 1,123 (2,971) 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 1,392 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (360) 782 (771) (10,303) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - -------------------------------------------------------------------------------------- 419 - (6,416) 2,372 (7,393) Treasury stock at cost - - - - -------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 419 - (6,416) 2,372 (7,393) TOTAL LIABILITIES AND EQUITY $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ======================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,567 Trade accounts receivable, net - 87,879 Other Receivables - 9,251 Due from affiliates (109,506) (514) Inventories - 45,365 Prepaid expenses - 6,250 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (109,506) 150,798 Property, plant and equipment, net - 169,319 Deferred income taxes - - Investments-Third Party - 6,781 Investments in Subs (381,546) 45,453 Other assets (1) 41,758 -------------------------------- TOTAL ASSETS $(491,053) $ 414,109 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,871) 181,704 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,028) 53,441 Unsecured debt (133,138) 714,140 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,122) (546,056) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (73,544) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,123) (855,225) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,123) (857,762) TOTAL LIABILITIES AND EQUITY $(491,053) $ 414,109 ================================
* 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
---------------------------------------------------------------------------------------- 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 ---------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 25,602 $ 43,566 $ 43,581 $ 53,511 $ 61,483 $ 68,952 $ 70,812 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- -- TAX PAYABLE: -- -- -- -- -- Federal Payroll Taxes -- -- 8 8 98 3 State Payroll & Sales 178 231 364 437 405 409 415 Ad Valorem Taxes -- -- -- -- -- -- Other Taxes 3,383 3,901 4,527 5,162 5,795 4,408 3,730 TOTAL TAXES PAYABLE $ 3,561 $ 4,132 $ 4,891 $ 5,607 $ 6,208 $ 4,915 $ 4,148 SECURED DEBT POST-PETITION 51,301 51,346 51,127 56,066 78,668 74,598 76,479 ACCRUED INTEREST PAYABLE 436 370 553 670 752 518 624 *ACCRUED PROFESSIONAL FEES: 4,714 5,236 5,587 5,989 6,106 6,427 7,096 OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 31,422 37,458 31,736 31,003 30,498 32,171 32,233 2. Lease Operating Expenses/Capital -- -- -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 117,036 $ 142,108 $137,475 $ 152,846 $ 183,715 $ 187,581 $ 191,392 ================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JUNE 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 72,397 $ 72,397 $ -- $ -- $ -- $ -- 31-60 922 922 -- -- -- -- 61-90 542 542 -- -- -- -- 91 + 28,457 28,457 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $102,318 $102,318 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JUNE 30, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, HOLDINGS, INC. INC. ENERGY, INC. INC. MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 48,626,030 $ 184,425 $ 1,693,508 TOTAL COST OF REVENUES -- 40,486,413 184,425 2,087,717 GROSS PROFIT $ -- $ 8,139,617 $ -- $ (394,209) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 932 $ 1,540,817 $ -- $ 117,412 Insiders Compensation -- 131,411 -- -- Professional Fees -- 1,350,558 -- -- Other (Earnings in Joint Venture) -- (2,284,592) (49,066) -- TOTAL OPERATING EXPENSE $ 932 $ 738,194 $ (49,066) $ 117,412 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (932) $ 7,401,423 $ 49,066 $ (511,621) INTEREST EXPENSE (includes amort of debt fees) -- 2,697,876 -- 614,434 DEPRECIATION -- 1,955,162 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,653,038 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (932) $ 2,748,385 $ 49,066 $ (1,173,671) INCOME TAXES -- -- 2,334 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (932) $ 2,748,385 $ 46,732 $ (1,173,671) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 617,525 $ 360,103 TOTAL COST OF REVENUES -- 59,458 460,832 GROSS PROFIT $ 83,333 $ 558,067 $ (100,729) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 231,893 $ (65,492) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 231,893 $ (65,492) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 326,174 $ (35,237) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,554 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,349 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (338,175) $ (35,237) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (338,175) $ (35,237) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,272,103 $ (83,333) $ 54,753,694 TOTAL COST OF REVENUES 1,859,446 (83,333) 45,054,958 GROSS PROFIT $ 1,412,657 $ -- $ 9,698,736 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,865 $ (540,881) 1,893,546 Insiders Compensation -- -- 131,411 Professional Fees -- -- 1,350,558 Other (Earnings in Joint Venture) -- -- (2,333,658) TOTAL OPERATING EXPENSE $ 608,865 $ (540,881) $ 1,041,857 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 803,792 $ 540,881 8,656,879 INTEREST EXPENSE (includes amort of debt fees) -- 540,881 4,069,410 DEPRECIATION 326,102 -- 2,837,675 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,102 $ 540,881 $ 6,907,085 ================================================================================================================= NET INCOME BEFORE TAXES $ 477,690 $ -- $ 1,749,794 INCOME TAXES -- -- 2,334 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 477,690 $ -- $ 1,747,460 =================================================================================================================
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 Dec-01 Jan-02 Feb-02 Mar-02 ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH (421,404) (256,194) 498,098 (1,530,893) ============ ============ ============ ============ RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 22,270,996 24,602,303 20,717,983 25,478,506 4. LOANS & ADVANCES - CIT REVOLVER 29,200,000 31,600,000 26,900,000 36,300,000 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 11,415,178 9,644,850 13,860,068 19,408,945 ------------ ------------ ------------ ------------ TOTAL RECEIPTS 62,886,174 65,847,152 61,478,051 81,187,451 ------------ ------------ ------------ ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A ============ ============ ============ ============ DISBURSEMENTS: 7. NET PAYROLL 1,932,984 1,297,213 1,930,462 2,601,421 8. PAYROLL TAXES PAID 870,019 974,973 972,750 1,053,588 9. SALES, USE & OTHER TAXES PAID 50,776 57,123 -- 1,404,405 10.SECURED/RENTAL/LEASES 184,920 161,222 154,571 99,905 11.UTILITIES 4,230,558 2,765,343 2,158,233 1,150,288 12.INSURANCE 456,145 728,204 589,057 410,554 13.INVENTORY PURCHASES 8,921,056 11,876,414 2,984,285 10,861,846 14.VEHICLE EXPENSES -- -- -- -- 15.TRAVEL & ENTERTAINMENT 64,095 60,079 63,635 36,818 16.REPAIRS, MAINTENANCE & SUPPLIES 1,085,130 1,487,951 7,400,962 4,837,494 17.ADMINISTRATIVE & SELLING 3,142,158 2,804,552 2,442,379 3,841,855 18.OTHER (attach list) 41,099,335 41,641,012 43,639,825 52,706,777 TOTAL DISBURSEMENTS FROM OPERATIONS 62,037,177 63,854,086 62,336,159 79,004,950 19.PROFESSIONAL FEES 683,788 1,185,274 1,045,883 1,257,449 20.U.S. TRUSTEE FEES -- 53,500 -- -- 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- 125,000 -- ------------ ------------ ------------ ------------ TOTAL DISBURSEMENTS 62,720,965 65,092,860 63,507,042 80,262,399 ============ ============ ============ ============ 22.NET CASH FLOW 165,210 754,292 (2,028,991) 925,052 23.CASH - END OF MONTH (MOR-2) (256,194) 498,098 (1,530,893) (605,842) per MOR-7 (256,194.38) 498,097.76 (1,530,893.34) (605,841.51) per 211 trial balance 622,716.13 1,983,218.51 986,980.26 636,425.59 -------------- -------------- -------------- -------------- difference 878,910.51 1,485,120.75 2,517,873.60 1,242,267.10 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 874,085.82 1,480,296.06 2,513,048.91 1,237,442.41 -------------- -------------- -------------- -------------- reconciled difference 878,910.51 1,485,120.75 2,517,873.60 1,242,267.10 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 DATE ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH (605,842) 1,432,341 (223,012) 9,346,546 ============ ============ ============ ============ RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 17,926,575 34,807,911 46,518,489 298,458,787 4. LOANS & ADVANCES - CIT REVOLVER 46,100,000 37,400,000 51,000,000 387,800,000 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 16,090,857 11,363,818 13,092,564 146,532,474 ------------ ------------ ------------ ------------ TOTAL RECEIPTS 80,117,432 83,571,729 110,611,053 832,791,261 ------------ ------------ ------------ ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A ============ ============ ============ ============ DISBURSEMENTS: 7. NET PAYROLL 1,983,856 1,609,373 2,733,978 23,287,256 8. PAYROLL TAXES PAID 932,205 936,861 1,092,418 10,401,116 9. SALES, USE & OTHER TAXES PAID 1,650,149 1,456,271 1,303,015 7,536,404 10.SECURED/RENTAL/LEASES 30,705 101,829 147,956 1,703,425 11.UTILITIES 6,922,372 3,817,800 3,361,146 38,382,400 12.INSURANCE 50,625 15,583 7,256 5,435,281 13.INVENTORY PURCHASES 17,691,587 16,201,310 29,280,908 145,431,855 14.VEHICLE EXPENSES -- -- -- -- 15.TRAVEL & ENTERTAINMENT 65,732 72,716 38,426 573,865 16.REPAIRS, MAINTENANCE & SUPPLIES 3,235,006 1,896,650 1,681,812 26,686,293 17.ADMINISTRATIVE & SELLING 4,503,340 4,089,807 2,334,678 32,491,028 18.OTHER (attach list) 39,441,420 54,014,374 65,577,853 538,220,026 TOTAL DISBURSEMENTS FROM OPERATIONS 76,506,997 84,212,575 107,559,446 830,148,950 19.PROFESSIONAL FEES 1,525,502 1,014,508 700,599 9,595,361 20.U.S. TRUSTEE FEES 46,750 -- -- 140,500 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- -- 125,000 ------------ ------------ ------------ ------------ TOTAL DISBURSEMENTS 78,079,249 85,227,083 108,260,045 840,009,811 ============ ============ ============ ============ 22.NET CASH FLOW 2,038,183 (1,655,353) 2,351,008 (7,218,550) 23.CASH - END OF MONTH (MOR-2) 1,432,341 (223,012) 2,127,996 2,127,996 per MOR-7 1,432,341.16 (223,012.32) 2,127,995.75 per 211 trial balance 1,865,999.23 1,368,935.72 2,127,995.75 -------------- -------------- -------------- difference 433,658.07 1,591,948.04 (0.00) g/l acct 10123 - not a good account, s/b zero 794.70 0.00 0.00 g/l acct 10131 - account was closed before filing, bal s/b zero 4,029.99 0.00 0.00 g/l acct 10199 - cash overdraft reclass of outstanding checks 428,833.38 1,591,948.04 0.00 -------------- -------------- -------------- reconciled difference 433,658.07 1,591,948.04 0.00
MOR-7 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 DATE ---------- ---------- ---------- ------------ ---------- ------------- ------------- ----------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- 80,302 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous 146,500 100,833 223,221 131,124 195,444 128,178 159,394 2,894,259 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Account Transfers 10,348,106 9,120,571 13,636,846 17,715,686 15,239,518 11,235,640 11,535,051 134,390,126 Intercompany Transfers 920,573 423,445 -- 1,562,134 655,895 -- 1,398,119 9,167,787 ---------- ---------- ---------- ------------ ---------- ------------- ------------- ----------- TOTAL OTHER RECEIPTS 11,415,178 9,644,850 13,860,068 19,408,945 16,090,857 11,363,818 13,092,564 146,532,474 ========== ========== ========== ============ ========== ============= ============= =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures 558,388 1,491,633 1,841,654 1,418,900 (581,465) 598,552 134,895 6,678,145 Revenue & Royalties -- -- - -- -- -- -- -- Interest Payment -- -- - -- -- -- -- 97,161 Employee Benefits 1,276,424 2,711,036 1,602,513 2,285,842 2,492,292 1,544,520 2,998,019 22,240,543 Severance tax -- -- - -- -- -- -- -- Pre-petition checks voided in current period -- -- - -- -- -- -- (30,000) Account Transfers 10,348,106 9,120,571 13,636,846 17,715,686 15,239,518 11,235,640 11,535,051 134,390,126 CIT Revolver Payments 22,948,750 23,718,420 21,934,238 25,605,169 17,344,416 35,714,063 44,954,575 314,484,322 Intercompany Transfers 5,967,667 4,599,352 4,624,574 5,681,179 4,946,658 4,921,599 5,955,312 60,359,730 ---------- ---------- ---------- ------------ ---------- ------------- ------------- ----------- TOTAL OTHER DISBURSEMENTS 41,099,335 41,641,012 43,639,825 52,706,777 39,441,420 54,014,374 65,577,853 538,220,026 ========== ========== ========== ============ ========== ============= ============= =========== 16,157,239.31 17,490,363.22
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 100 185,151 1,363,554 (1,777,199) =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 40,557,473 4. LOANS & ADVANCES - CIT REVOLVER 51,000,000 5. SALE OF ASSETS 6. OTHER (attach list) -- 1,398,119 3,350,000 7,616,538 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 40,557,473 52,398,119 3,350,000 7,616,538 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL 2,733,978 -- 8. PAYROLL TAXES PAID 1,092,418 9. SALES, USE & OTHER TAXES PAID 65,529 1,237,486 10. SECURED/RENTAL/LEASES 147,956 11. UTILITIES 3,361,146 12. INSURANCE 2,676 4,580 13. INVENTORY PURCHASES 29,144,112 136,796 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 38,426 16. REPAIRS, MAINTENANCE & SUPPLIES 1,681,812 17. ADMINISTRATIVE & SELLING 269,929 2,064,749 18. OTHER (attach list) 38,830,798 19,497,183 -- 557,582 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 38,830,798 52,340,575 3,826,396 5,869,387 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 700,599 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 38,830,798 52,340,575 3,826,396 6,569,986 =============== =============== =============== =============== 22. NET CASH FLOW 1,726,676 57,544 (476,396) 1,046,552 23. CASH - END OF MONTH (MOR-2) 1,726,776 242,695 887,158 (730,647) 1,969,470.82 887,158.24 (730,646.91) 0.00 0.00 (0.00) CASH RECEIPTS AND Chase Chase Bank One Total DISBURSEMENTS 6301810036508 6301810028508 5561833 Debtor ----------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH -- -- 5,382 (223,012) =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 5,961,016 46,518,489 4. LOANS & ADVANCES - CIT REVOLVER 51,000,000 5. SALE OF ASSETS -- 6. OTHER (attach list) 561,177 7,336 159,394 13,092,564 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 561,177 7,336 6,120,410 110,611,053 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- -- -- 2,733,978 8. PAYROLL TAXES PAID 1,092,418 9. SALES, USE & OTHER TAXES PAID 1,303,015 10. SECURED/RENTAL/LEASES 147,956 11. UTILITIES 3,361,146 12. INSURANCE 7,256 13. INVENTORY PURCHASES 29,280,908 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT 38,426 16. REPAIRS, MAINTENANCE & SUPPLIES 1,681,812 17. ADMINISTRATIVE & SELLING 2,334,678 18. OTHER (attach list) 561,177 7,336 6,123,778 65,577,853 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 561,177 7,336 6,123,778 107,559,446 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 700,599 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 561,177 7,336 6,123,778 108,260,045 =============== =============== =============== =============== 22. NET CASH FLOW -- -- (3,368) 2,351,008 23. CASH - END OF MONTH (MOR-2) -- -- 2,014 2,127,996 2,013.60 (0.00)
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 3,350,000 7,616,538 Intercompany Transfers 1,398,119 ----------- ---------- ---------- --------- ---------- TOTAL OTHER RECEIPTS -- -- 1,398,119 3,350,000 7,616,538 =========== ========== ========== ========= ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures 134,895 Revenue & Royalties Interest Payment Employee Benefits 2,006,820 422,687 Severance tax Pre-petition checks voided in current period Account Transfers 11,535,051 CIT Revolver Payments 38,830,798 -- Intercompany Transfers 5,955,312 ----------- ---------- ---------- --------- ---------- TOTAL OTHER DISBURSEMENTS -- 38,830,798 19,497,183 -- 557,582 =========== ========== ========== ========= ========== 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 159,394 159,394 Royalty Owners Trust Account -- Emission Credits -- Account Transfers 561,177 7,336 11,535,051 Intercompany Transfers 1,398,119 --------- --------- ------------ ---------- ---------- TOTAL OTHER RECEIPTS 561,177 7,336 -- 159,394 13,092,564 ========= ========= ============ ========== ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- Workover Expense -- Capital Expenditures 134,895 Revenue & Royalties -- Interest Payment -- Employee Benefits 561,177 7,336 2,998,019 Severance tax -- Pre-petition checks voided in current period -- Account Transfers 11,535,051 CIT Revolver Payments 6,123,778 44,954,575 Intercompany Transfers 5,955,312 --------- --------- ------------ ---------- ---------- TOTAL OTHER DISBURSEMENTS 561,177 7,336 -- 6,123,778 65,577,853 ========= ========= ============ ========== ==========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H-11 CASH ACCOUNT RECONCILIATION MONTH OF JUNE 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 $ 1,726,776 $ 242,695 $ 336,460 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS (730,647) OTHER 1 550,697 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ 1,726,776 $ 242,696 $ 887,157 $ (730,647) =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ 100 $ 185,152 $ 1,363,553 $ (1,777,199) RECEIPTS 40,557,473 51,000,000 TRANSFERS BETWEEN ACCOUNTS (16,092,244) 3,350,000 7,616,538 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (38,830,797) (34,850,212) (3,826,396) (6,569,986) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ 1,726,776 $ 242,696 $ 887,157 $ (730,647) =============== =============== =============== =============== 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 $ -- $ -- $ 2,013 $ 2,307,944 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS (730,647) OTHER 1 550,699 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ -- $ 2,014 $ 2,127,996 =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ -- $ 5,382 $ (223,012) RECEIPTS 6,120,410 97,677,883 TRANSFERS BETWEEN ACCOUNTS 561,177 7,336 (4,557,193) (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (561,177) (7,336) (6,123,778) (90,769,682) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ -- $ 2,014 $ 2,127,996 =============== =============== =============== ===============
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) Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 DATE - --------------------------------------- --------- --------- -------- -------- -------- ---------- --------- ---------- 1. Frank Diassi/Chairman of Board/Salary $ 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 30,333 30,333 30,333 30,333 207,667 6. David Elkins/President/Bonus 21,875 -- 22,750 136,500 -- 21,875 181,125 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 28,636 27,500 27,917 27,917 27,917 27,917 189,887 10. Richard Crump/Exec VP Opers/Bonus 18,750 1,875 20,938 125,625 -- 20,625 167,188 11. Richard Crump/Exec VP Opers/Expense 531 4,453 5,404 4,610 6,728 -- 24,057 12. Paul Vanderhoven/VP Finance & CFO/Salary 16,667 16,667 16,667 18,333 18,333 18,333 18,333 121,667 13. Paul Vanderhoven/VP Finance & CFO/Bonus 10,000 -- 11,000 79,200 -- 10,000 100,200 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) $ 204,995 $ 142,597 $116,429 $ 150,683 $494,281 $ 78,911 $ 131,411 $1,294,639 ========= ========= ======== ========= ======== ========== ========= ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 DATE - --------------------------- --------- ---------- ------------ ----------- ----------- ----------- --------- ----------- 1. Logan & Company, Inc. $ 30,272 $ 9,958.00 $ 15,624.27 $ 23,247 $ 3,541 $ 6,645.54 $ 2,631.30 $ 155,266 2. Andrews & Kurth LLP 210,726 139,340 128,643.28 213,187 132,819 256,170.65 246,122.69 1,080,887 3. US Trustee -- 53,500 -- -- 46,750 -- -- 100,250 4. Skadden, Arps, Slate, Meagher & Flom LLP -- 293,229 466,138.76 634,706 321,403 406,542.75 115,338.02 2,122,020 5. Akin Gump Strauss 231,124 -- 35,089.74 120,257 78,728 81,093.82 104,790.97 673,273 6. Arthur Andersen 31,792 115,041 22,556.70 -- 95,421 70,316.52 -- 470,062 7. Lazard Freres & Co. LLC -- -- 284,550.16 153,356 295,856 138,638.86 182,916.20 1,141,014 8. Baker & Botts 132,523 111,985 46,197.50 32,861 66,007 30,965.11 10,376.97 575,335 9. Groom Law Group 4,587 10,078 9,773.24 9,738 23,879 10,670.30 4,244.10 80,056 10. Nexant, Inc. 42,764 8,399 37,309.09 16,416 9,595 13,464.59 34,178.90 168,199 11. Greenhill & Co. 497,243 -- 53,680 498,253 -- -- 1,049,176 ---------- ---------- ------------ ----------- ----------- ----------- ----------- ----------- TOTAL PROFESSIONALS (MOR-1) $ 683,788 $1,238,773 $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 1,014,508 $ 700,599 $ 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 h98580exv99w3.txt MONTHLY OPERATING RPT - STERLING CHEMICALS 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: JUNE YEAR: 2002
MONTH 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 (revised) (revised) - --------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 179,201 $ 302,130 $ 262,068 $ 192,124 $ 193,956 $ 185,170 $ 184,425 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 593,727 $ 464,670 $ 43,425 $ (61,716) $ 15,879 $ 69,703 $ 49,066 NET INCOME (LOSS) (MOR-6) $ 562,547 $ 439,688 $ 38,020 $ (54,923) $ 14,278 $ 51,703 $ 46,732 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $1,865,793 $1,583,667 $1,560,614 $1,604,507 $ 914,795 $1,353,466 $1,400,931 (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 7/19/02 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 7/19/02
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 JUNE 30, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 171 $ 2,128 $ - $ 120 Trade accounts receivable, net - 76,785 71 2,901 Other Receivables - 1,848 - 3,006 Due from affiliates 1,027 25,130 13,785 - Inventories - 35,305 - 8,170 Prepaid expenses 33 6,018 - 96 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,231 147,214 13,856 14,293 Property, plant and equipment, net - 119,003 2,760 5,882 Deferred income taxes - - - - Investments-Third Party - 1,500 5,281 - Investments in Subs 35,060 94,735 - - Other assets 865 34,417 - 1,209 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,156 $ 396,869 $ 21,897 $ 21,384 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 191,570 1,364 7,086 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 41,276 - 10,366 Unsecured debt 186,538 260,286 1,110 70,656 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,047) (56,215) 4,089 (9,719) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,679) (507,054) 19,423 (139,774) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,679) (509,591) 19,423 (139,774) TOTAL LIABILITIES AND EQUITY $ 37,156 $ 396,869 $ 21,897 $ 21,384 ====================================================================================
------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 148 $ - $ - Trade accounts receivable, net - 2,670 864 4,588 Other Receivables - 4,397 - - Due from affiliates 3,384 (3,384) 56,860 630 8,176 Inventories - - 100 1,790 Prepaid expenses - - - 103 Deferred income tax benefit - - - - --------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,384 (3,384) 64,075 1,594 14,657 Property, plant and equipment, net - - - 41,674 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,393 - Other assets 2,547 2,721 - - -------------------------------------------------------------------------------------- TOTAL ASSETS $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ====================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 (413) 24,654 445 1,381 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 662 12,165 - - Unsecured debt 1,123 (2,971) 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 1,392 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (360) 782 (771) (10,303) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - -------------------------------------------------------------------------------------- 419 - (6,416) 2,372 (7,393) Treasury stock at cost - - - - -------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 419 - (6,416) 2,372 (7,393) TOTAL LIABILITIES AND EQUITY $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ======================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,567 Trade accounts receivable, net - 87,879 Other Receivables - 9,251 Due from affiliates (109,506) (514) Inventories - 45,365 Prepaid expenses - 6,250 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (109,506) 150,798 Property, plant and equipment, net - 169,319 Deferred income taxes - - Investments-Third Party - 6,781 Investments in Subs (381,546) 45,453 Other assets (1) 41,758 -------------------------------- TOTAL ASSETS $(491,053) $ 414,109 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,871) 181,704 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,028) 53,441 Unsecured debt (133,138) 714,140 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,122) (546,056) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (73,544) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,123) (855,225) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,123) (857,762) TOTAL LIABILITIES AND EQUITY $(491,053) $ 414,109 ================================
* 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
-------------------------------------------------------------------------------------- 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 -------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 1,719 $ 1,702 $ 754 $ 1,057 $ 1,493 $ 1,433 $ 1,364 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) $ 1,719 $ 1,702 $ 754 $ 1,057 $ 1,493 $ 1,433 $ 1,364 ==============================================================================================================================
*Payment Requires Court Approval. MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JUNE 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 72,397 $ 72,397 $ -- $ -- $ -- $ -- 31-60 922 922 -- -- -- -- 61-90 542 542 -- -- -- -- 91 + 28,457 28,457 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $102,318 $102,318 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JUNE 30, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, HOLDINGS, INC. INC. ENERGY, INC. INC. MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 48,626,030 $ 184,425 $ 1,693,508 TOTAL COST OF REVENUES -- 40,486,413 184,425 2,087,717 GROSS PROFIT $ -- $ 8,139,617 $ -- $ (394,209) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 932 $ 1,540,817 $ -- $ 117,412 Insiders Compensation -- 131,411 -- -- Professional Fees -- 1,350,558 -- -- Other (Earnings in Joint Venture) -- (2,284,592) (49,066) -- TOTAL OPERATING EXPENSE $ 932 $ 738,194 $ (49,066) $ 117,412 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (932) $ 7,401,423 $ 49,066 $ (511,621) INTEREST EXPENSE (includes amort of debt fees) -- 2,697,876 -- 614,434 DEPRECIATION -- 1,955,162 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,653,038 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (932) $ 2,748,385 $ 49,066 $ (1,173,671) INCOME TAXES -- -- 2,334 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (932) $ 2,748,385 $ 46,732 $ (1,173,671) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 617,525 $ 360,103 TOTAL COST OF REVENUES -- 59,458 460,832 GROSS PROFIT $ 83,333 $ 558,067 $ (100,729) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 231,893 $ (65,492) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 231,893 $ (65,492) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 326,174 $ (35,237) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,554 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,349 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (338,175) $ (35,237) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (338,175) $ (35,237) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,272,103 $ (83,333) $ 54,753,694 TOTAL COST OF REVENUES 1,859,446 (83,333) 45,054,958 GROSS PROFIT $ 1,412,657 $ -- $ 9,698,736 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,865 $ (540,881) 1,893,546 Insiders Compensation -- -- 131,411 Professional Fees -- -- 1,350,558 Other (Earnings in Joint Venture) -- -- (2,333,658) TOTAL OPERATING EXPENSE $ 608,865 $ (540,881) $ 1,041,857 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 803,792 $ 540,881 8,656,879 INTEREST EXPENSE (includes amort of debt fees) -- 540,881 4,069,410 DEPRECIATION 326,102 -- 2,837,675 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,102 $ 540,881 $ 6,907,085 ================================================================================================================= NET INCOME BEFORE TAXES $ 477,690 $ -- $ 1,749,794 INCOME TAXES -- -- 2,334 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 477,690 $ -- $ 1,747,460 =================================================================================================================
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 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 DATE - ----------------- --------- --------- ---------- ---------- --------- --------- --------- ---------- 1. CASH-BEGINNING OF MONTH 100 100 100 100 100 100 100 100 ========= ========= ========== ========== ========= ========= ========= ========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 63,217 50,033 69,040 67,945 67,591 72,867 87,682 795,077 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 1,802,575 1,533,633 1,491,574 1,536,562 847,203 1,280,599 1,313,248 17,040,161 --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL RECEIPTS 1,865,793 1,583,667 1,560,614 1,604,507 914,795 1,353,466 1,400,931 17,835,238 --------- --------- --------- --------- --------- --------- --------- ---------- (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 1,802,575 1,533,633 1,491,574 536,562 847,203 1,280,599 1,313,248 15,040,161 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) 63,217 50,033 69,040 1,067,945 67,591 72,867 87,682 2,795,077 --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,865,793 1,583,667 1,560,614 1,604,507 914,795 1,353,466 1,400,931 17,835,238 ========= ========= ========= ========= ========= ========= ========= ========== 19. PROFESSIONAL FEES -- -- -- -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- ---------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL DISBURSEMENTS 1,865,793 1,583,667 1,560,614 1,604,507 914,795 1,353,434 1,400,931 17,835,238 ========= ========= ========= ========= ========= ========= ========= ========== 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: Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-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 1,802,575 1,533,633 1,491,574 536,562 847,203 1,280,599 1,313,248 15,040,161 -- -- -- -- --------- ---------- ---------- ------------- ---------- --------- ---------- ---------- TOTAL OTHER RECEIPTS 1,802,575 1,533,633 1,491,574 1,536,562 847,203 1,280,599 1,313,248 17,040,161 ========= ========== ========== ============= ========== ========= ========== ========== 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 63,217 50,033 69,040 1,067,945 67,591 72,867 87,682 2,795,077 -- -- --------- ---------- ---------- ------------- ---------- --------- ---------- ---------- TOTAL OTHER DISBURSEMENTS 63,217 50,033 69,040 1,067,945 67,591 72,867 87,682 2,795,077 ========= ========== ========== ============= ========== ========= ========== ==========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 FOR THE PERIOD 6/01/02 - 6/30/02
CASH RECEIPTS AND Chase Chase DISBURSEMENTS 00103317203 00101818459 - ----------------- -------------- ----------- ------------ ----------- 1. CASH-BEGINNING OF MONTH -- 100 -- -- ============== =========== ============ =========== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- 87,682 4. LOANS & ADVANCES (attach list) -- -- 5. SALE OF ASSETS -- -- 6. OTHER (attach list) 1,313,248 -- -- -------------- ----------- ------------ ----------- TOTAL RECEIPTS 1,313,248 87,682 -- -- -------------- ----------- ------------ ----------- (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 1,313,248 -- 12. INSURANCE -- -- 13. INVENTORY PURCHASES -- -- 14. VEHICLE EXPENSES -- -- 15. TRAVEL & ENTERTAINMENT -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 17. ADMINISTRATIVE & SELLING -- -- 18. OTHER (attach list) -- 87,682 -------------- ----------- ------------ ----------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,313,248 87,682 -- -- ============== =========== ============ =========== 19. PROFESSIONAL FEES -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -------------- ----------- ------------ ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS 1,313,248 87,682 -- -- ============== =========== ============ =========== 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 87,682 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 1,313,248 ------------ ----------- ------------- TOTAL RECEIPTS -- -- 1,400,931 ------------ ----------- ------------- (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 1,313,248 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING -- 18. OTHER (attach list) 87,682 ------------ ----------- ------------- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- 1,400,931 ============ =========== ============= 19. PROFESSIONAL FEES -- -- -- 20. U.S. TRUSTEE FEES -- -- -- ------------ ----------- ------------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- TOTAL DISBURSEMENTS -- -- 1,400,931 ============ =========== ============= 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 6/01/02 - 6/30/02
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 1,313,248 -- 1,313,248 ------------ --------- ------------ TOTAL OTHER RECEIPTS 1,313,248 -- 1,313,248 ============ ========= ============ 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 -- 87,682 87,682 ------------ --------- ------------ TOTAL OTHER DISBURSEMENTS -- 87,682 87,682 ============ ========= ============
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 CASH ACCOUNT RECONCILIATION MONTH OF JUNE 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 87,682 87,682 TRANSFERS BETWEEN ACCOUNTS 1,313,248 1,313,248 (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (1,313,248) (87,682) (1,400,930) ---------------- --------------- ----------- 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) Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 DATE - ----------------------------------- -------- -------- -------- -------- -------- -------- -------- --------- 1 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2 -- -- -- -- -- -- -- -- 3 -- -- -- -- -- -- -- -- 4 -- -- -- -- -- -- -- -- 5 -- -- -- -- -- -- -- -- 6 -- -- -- -- -- -- -- -- 7 -- -- -- -- -- -- -- -- 8 -- -- -- -- -- -- -- -- 9 -- -- -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- --------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ======== ======== =========
PROFESSIONALS FILING TO NAME/ORDER DATE Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-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 h98580exv99w4.txt MONTHLY OPERATING RPT - 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: JUNE YEAR: 2002
MONTH 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 Revised Revised Revised Revised - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $1,466,000 $ 1,578,891 $ 1,141,971 $ 1,554,279 $1,707,430 $1,769,204 $ 1,693,508 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (13,259) $ (339,192) $ (604,191) $ (421,580) $ (127,852) $ (180,394) $ (511,621) NET INCOME (LOSS) (MOR-6) $ (675,264) $(1,001,244) $(1,266,289) $(1,083,585) $ (789,902) $ (842,445) $(1,173,671) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $2,756,941 $ 2,724,120 $ 2,573,236 $ 2,738,115 $3,182,878 $2,867,783 $ 2,703,564 (1) Excludes intercompany transfers as follows: $ -- $ 393,386 $ 200,000 $ 210,000 $ 230,000 $ 205,000 $ 190,000
***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 3 of 14 7/19/02 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 7/19/02
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 JUNE 30, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 171 $ 2,128 $ - $ 120 Trade accounts receivable, net - 76,785 71 2,901 Other Receivables - 1,848 - 3,006 Due from affiliates 1,027 25,130 13,785 - Inventories - 35,305 - 8,170 Prepaid expenses 33 6,018 - 96 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,231 147,214 13,856 14,293 Property, plant and equipment, net - 119,003 2,760 5,882 Deferred income taxes - - - - Investments-Third Party - 1,500 5,281 - Investments in Subs 35,060 94,735 - - Other assets 865 34,417 - 1,209 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,156 $ 396,869 $ 21,897 $ 21,384 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 191,570 1,364 7,086 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 41,276 - 10,366 Unsecured debt 186,538 260,286 1,110 70,656 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,047) (56,215) 4,089 (9,719) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,679) (507,054) 19,423 (139,774) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,679) (509,591) 19,423 (139,774) TOTAL LIABILITIES AND EQUITY $ 37,156 $ 396,869 $ 21,897 $ 21,384 ====================================================================================
------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 148 $ - $ - Trade accounts receivable, net - 2,670 864 4,588 Other Receivables - 4,397 - - Due from affiliates 3,384 (3,384) 56,860 630 8,176 Inventories - - 100 1,790 Prepaid expenses - - - 103 Deferred income tax benefit - - - - --------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,384 (3,384) 64,075 1,594 14,657 Property, plant and equipment, net - - - 41,674 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,393 - Other assets 2,547 2,721 - - -------------------------------------------------------------------------------------- TOTAL ASSETS $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ====================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 (413) 24,654 445 1,381 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 662 12,165 - - Unsecured debt 1,123 (2,971) 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 1,392 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (360) 782 (771) (10,303) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - -------------------------------------------------------------------------------------- 419 - (6,416) 2,372 (7,393) Treasury stock at cost - - - - -------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 419 - (6,416) 2,372 (7,393) TOTAL LIABILITIES AND EQUITY $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ======================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,567 Trade accounts receivable, net - 87,879 Other Receivables - 9,251 Due from affiliates (109,506) (514) Inventories - 45,365 Prepaid expenses - 6,250 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (109,506) 150,798 Property, plant and equipment, net - 169,319 Deferred income taxes - - Investments-Third Party - 6,781 Investments in Subs (381,546) 45,453 Other assets (1) 41,758 -------------------------------- TOTAL ASSETS $(491,053) $ 414,109 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,871) 181,704 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,028) 53,441 Unsecured debt (133,138) 714,140 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,122) (546,056) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (73,544) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,123) (855,225) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,123) (857,762) TOTAL LIABILITIES AND EQUITY $(491,053) $ 414,109 ================================
* 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
----------------------------------------------------------------------------------------- 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 ----------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 2,614 $ 5,479 $ 5,821 $ 6,096 $ 6,168 $ 6,443 $ 6,794 ROYALTY AND REVENUE PAYABLE -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- TAX PAYABLE: -- -- Federal Payroll Taxes 26 -- -- -- State Payroll & Sales (3) (3) -- (1) (1) (2) (3) Ad Valorem Taxes -- -- -- -- Other Taxes 137 162 232 220 245 270 295 TOTAL TAXES PAYABLE $ 161 $ 159 $ 232 $ 219 $ 244 $ 268 $ 292 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) $ 2,775 $ 5,638 $ 6,053 $ 6,315 $ 6,412 $ 6,711 $ 7,086 ================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JUNE 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 72,397 $ 72,397 $ -- $ -- $ -- $ -- 31-60 922 922 -- -- -- -- 61-90 542 542 -- -- -- -- 91 + 28,457 28,457 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $102,318 $102,318 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JUNE 30, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, HOLDINGS, INC. INC. ENERGY, INC. INC. MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 48,626,030 $ 184,425 $ 1,693,508 TOTAL COST OF REVENUES -- 40,486,413 184,425 2,087,717 GROSS PROFIT $ -- $ 8,139,617 $ -- $ (394,209) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 932 $ 1,540,817 $ -- $ 117,412 Insiders Compensation -- 131,411 -- -- Professional Fees -- 1,350,558 -- -- Other (Earnings in Joint Venture) -- (2,284,592) (49,066) -- TOTAL OPERATING EXPENSE $ 932 $ 738,194 $ (49,066) $ 117,412 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (932) $ 7,401,423 $ 49,066 $ (511,621) INTEREST EXPENSE (includes amort of debt fees) -- 2,697,876 -- 614,434 DEPRECIATION -- 1,955,162 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,653,038 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (932) $ 2,748,385 $ 49,066 $ (1,173,671) INCOME TAXES -- -- 2,334 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (932) $ 2,748,385 $ 46,732 $ (1,173,671) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 617,525 $ 360,103 TOTAL COST OF REVENUES -- 59,458 460,832 GROSS PROFIT $ 83,333 $ 558,067 $ (100,729) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 231,893 $ (65,492) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 231,893 $ (65,492) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 326,174 $ (35,237) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,554 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,349 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (338,175) $ (35,237) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (338,175) $ (35,237) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,272,103 $ (83,333) $ 54,753,694 TOTAL COST OF REVENUES 1,859,446 (83,333) 45,054,958 GROSS PROFIT $ 1,412,657 $ -- $ 9,698,736 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,865 $ (540,881) 1,893,546 Insiders Compensation -- -- 131,411 Professional Fees -- -- 1,350,558 Other (Earnings in Joint Venture) -- -- (2,333,658) TOTAL OPERATING EXPENSE $ 608,865 $ (540,881) $ 1,041,857 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 803,792 $ 540,881 8,656,879 INTEREST EXPENSE (includes amort of debt fees) -- 540,881 4,069,410 DEPRECIATION 326,102 -- 2,837,675 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,102 $ 540,881 $ 6,907,085 ================================================================================================================= NET INCOME BEFORE TAXES $ 477,690 $ -- $ 1,749,794 INCOME TAXES -- -- 2,334 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 477,690 $ -- $ 1,747,460 =================================================================================================================
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 Dec-01 Jan-02 Feb-02 Mar-02 - ----------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 213,923 $ 412,443 $ 123,772 $ 165,556 ------------ ------------ ------------ ------------ RECEIPTS: 2. CASH SALES -- -- $ -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE $ 1,489,298 $ 1,582,440 1,349,186 1,657,321 4. LOANS & ADVANCES (attach list) -- -- -- -- 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 1,466,164 1,246,396 1,465,834 1,292,880 TOTAL RECEIPTS $ 2,955,462 $ 2,828,836 $ 2,815,019 $ 2,950,201 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 146,889 $ 211,662 $ 142,024 $ 157,720 8. PAYROLL TAXES PAID 89,708 81,238 61,762 66,433 9. SALES, USE & OTHER TAXES PAID 21 802 567 4,742 10. SECURED/RENTAL/LEASES -- -- -- -- 11. UTILITIES 260,897 242,028 192,360 254,704 12. INSURANCE -- $ 1,582,440 -- -- 13. INVENTORY PURCHASES 146,466 61,262 151,616 73,403 14. VEHICLE EXPENSES -- -- -- -- 15. TRAVEL & ENTERTAINMENT 861 546 6,593 5,975 16. REPAIRS, MAINTENANCE & SUPPLIES 49,567 84,536 55,567 39,635 17. ADMINISTRATIVE & SELLING 1,950 -- -- 2,710 18. OTHER (attach list) 2,060,583 2,435,431 2,162,748 2,345,504 TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,756,941 $ 3,117,506 $ 2,773,236 $ 2,948,115 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES -- (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 2,756,941 $ 3,117,506 $ 2,773,236 $ 2,948,115 22. NET CASH FLOW $ 198,521 $ (288,670) $ 41,783 $ 2,086 23. CASH - END OF MONTH (MOR-2) $ 412,444 $ 123,772 $ 165,556 $ 167,642 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 DATE - ----------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 167,642 $ 151,768 $ 155,565 $ 714,483 ------------ ------------ ------------ ------------ RECEIPTS: 2. CASH SALES -- $ -- $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,655,125 1,652,762 1,514,756 21,954,573 4. LOANS & ADVANCES (attach list) -- -- -- -- 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 1,741,879 1,423,818 1,343,454 15,666,742 TOTAL RECEIPTS $ 3,397,004 $ 3,076,580 $ 2,858,210 $ 37,621,315 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 184,218 $ 146,485 $ 144,066 $ 2,072,539 8. PAYROLL TAXES PAID 71,168 56,463 56,059 816,304 9. SALES, USE & OTHER TAXES PAID 3,914 1,958 2,976 20,452 10. SECURED/RENTAL/LEASES -- -- -- 4,486 11. UTILITIES 223,466 193,003 153,563 2,159,191 12. INSURANCE -- -- -- 280,148 13. INVENTORY PURCHASES 192,570 224,244 149,137 1,549,730 14. VEHICLE EXPENSES -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- 6,019 3,207 58,936 16. REPAIRS, MAINTENANCE & SUPPLIES 48,832 88,852 67,749 676,349 17. ADMINISTRATIVE & SELLING 2,775 2,775 -- 15,521 18. OTHER (attach list) 2,685,999 2,352,984 2,316,805 30,561,931 TOTAL DISBURSEMENTS FROM OPERATIONS $ 3,412,878 $ 3,072,783 $ 2,893,564 $ 38,215,586 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES -- (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 3,412,878 $ 3,072,783 $ 2,893,564 $ 38,215,586 22. NET CASH FLOW $ (15,874) $ 3,797 $ (35,353) $ (594,271) 23. CASH - END OF MONTH (MOR-2) $ 151,768 $ 155,565 $ 120,211 $ 120,212
MOR-7 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: Dec-01 Jan-02 Feb-02 ----------------------- ---------- ---------- ---------- 6. OTHER RECEIPTS: Interest Income -- -- 401(k) Plan Refund -- -- Cobra Insurance Payment 3,764 -- 4,834 Miscellaneous -- 32,396 Royalty Owners Trust Account -- Emission Credits -- Intercompany Transfers 1,462,400 1,214,000 1,461,000 Account Transfers -- TOTAL OTHER RECEIPTS $1,466,164 $1,246,396 $1,465,834 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- Workover Expense -- -- Capital Expenditures -- -- Revenue & Royalties -- -- Interest Payment -- -- Employee Benefits 26,485 27,352 27,296 Severance tax -- -- Pre-petition checks voided in current period -- -- Insiders -- -- Restricted Cash Transactions -- -- Contract Services 367,969 464,117 463,768 Licenses / Fees / Permits -- 14,645 2,190 Freight 59,460 73,970 56,410 Account Transfers -- 393,386 200,000 Outstanding checks to Balance to G/L 168,807 (160,665) 104,132 CIT Revolver Payments 1,437,861 1,622,626 1,308,951 TOTAL OTHER DISBURSEMENTS $2,060,583 $2,435,431 $2,162,748 OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Mar-02 Apr-02 May-02 Jun-02 DATE ----------------------- ---------- ------------- ---------- ---------- ----------- 6. OTHER RECEIPTS: Interest Income $ -- $ 13,960.67 $ -- -- $ 14,505 401(k) Plan Refund -- -- -- -- -- Cobra Insurance Payment -- 3,398 2,886 2,640 40,598 Miscellaneous 1,880 70,520 8,931 15,814 266,238 Royalty Owners Trust Account -- -- -- -- -- Emission Credits -- -- -- -- -- Intercompany Transfers 1,291,000 1,424,000 1,412,000 1,324,000 14,404,400 Account Transfers -- 230,000 -- -- 940,000 TOTAL OTHER RECEIPTS $1,292,880 $ 1,741,879 $1,423,818 $1,342,454 $15,665,742 18. OTHER DISBURSEMENTS: Lease Operating Expense $ -- $ -- $ -- -- $ -- Workover Expense -- -- -- -- -- Capital Expenditures -- -- -- -- 17,812 Revenue & Royalties -- -- -- -- 10,150 Interest Payment -- -- -- -- -- Employee Benefits 41,037 27,032 26,130 25,870 324,216 Severance tax -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- (5,215) Insiders -- -- -- -- -- Restricted Cash Transactions -- -- -- -- -- Contract Services 502,800 434,528 554,635 429,682 2,687,610 Licenses / Fees / Permits 1,000 25 14,615 10,257 36,051 Freight 74,185 67,647 83,977 79,432 511,018 Account Transfers 210,000 230,000 205,000 190,000 1,103,386 Outstanding checks to Balance to G/L (125,520) 195,350 (193,585) 23,441 (313,366) CIT Revolver Payments 1,642,003 1,734,416 1,662,211 1,558,123 14,473,592 TOTAL OTHER DISBURSEMENTS $2,345,504 $ 2,688,999 $2,352,984 $2,316,805 $18,845,256
(1) Represents the period 7/17/01 thru 8/31/01 MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 JUNE 2002
CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS 00100547117 00103316965 103405768 630181003508 ----------------- ----------- ------------- ----------- ------------- 1. CASH-BEGINNING OF MONTH $ 100.00 $ 361.01 $ 12,949.76 $ 0.00 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 $ 0.00 $ 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 280,287.26 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 0.00 1,135,000.00 190,000.00 0.00 TOTAL RECEIPTS $280,287.26 $1,135,000.00 $190,000.00 $ 0.00 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ $144,066.18 $ 8. PAYROLL TAXES PAID 56,059.11 9. SALES, USE & OTHER TAXES PAID 2,976.34 10. SECURED/RENTAL/LEASES 11. UTILITIES 153,563.38 12. INSURANCE 13. INVENTORY PURCHASES 149,136.75 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 3,207.04 16. REPAIRS, MAINTENANCE & SUPPLIES 67,749.43 17. ADMINISTRATIVE & SELLING 0.00 18. OTHER (attach list) 268,023.86 758,682.58 0.00 0.00 TOTAL DISBURSEMENTS FROM OPERATIONS $268,023.86 $1,135,315.52 $200,125.29 $ 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 $268,023.86 $1,135,315.52 $200,125.29 $ 0.00 22. NET CASH FLOW $ 12,263.40 $ (315.52) $(10,125.29) $ 0.00 23. CASH - END OF MONTH (MOR-2) $ 12,363.40 $ 45.49 $ 2,824.47 $ 0.00 CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS 5577659 1171987307 DATE ----------------- ------------- --------------- ------------- 1. CASH-BEGINNING OF MONTH $ 81,341.99 $ 60,811.78 155,564.54 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,234,469.13 1,514,756.39 4. LOANS & ADVANCES (attach list) 0.00 5. SALE OF ASSETS 0.00 6. OTHER (attach list) 2,639.73 15,814.25 1,343,453.98 TOTAL RECEIPTS $1,237,108.86 $ 15,814.25 2,858,210.37 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ 144,066.18 8. PAYROLL TAXES PAID 56,059.11 9. SALES, USE & OTHER TAXES PAID 2,976.34 10. SECURED/RENTAL/LEASES 0.00 11. UTILITIES 153,563.38 12. INSURANCE 0.00 13. INVENTORY PURCHASES 149,136.75 14. VEHICLE EXPENSES 0.00 15. TRAVEL & ENTERTAINMENT 3,207.04 16. REPAIRS, MAINTENANCE & SUPPLIES 67,749.43 17. ADMINISTRATIVE & SELLING 0.00 18. OTHER (attach list) 1,290,098.95 0.00 2,316,805.39 TOTAL DISBURSEMENTS FROM OPERATIONS $1,290,098.95 $ 0.00 2,893,563.62 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 $1,290,098.95 $ 0.00 2,893,563.62 22. NET CASH FLOW $ (52,990.09) $ 15,814.25 (35,353.25) 23. CASH - END OF MONTH (MOR-2) $ 28,351.90 $ 76,626.03 120,211.29
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 JUNE 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 1,135,000.00 Account Transfers 190,000.00 TOTAL OTHER RECEIPTS $ 0.00 $1,135,000.00 $ 190,000.00 $ 0.00 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures Revenue & Royalties Interest Payment Employee Benefits 25,870.04 Severance tax Pre-petition checks voided in current period Insiders Restricted Cash Transactions Contract Services 429,682.39 Licenses / Fees / Permits 10,257.00 Freight 79,432.27 Account Transfers 190,000.00 Outstanding checks to Balance to G/L 23,440.88 CIT Revolver Payments 268,023.86 TOTAL OTHER DISBURSEMENTS $268,023.86 $ 758,682.58 $ 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 2,639.73 2,639.73 Miscellaneous 15,814.25 15,814.25 Royalty Owners Trust Account 0.00 Emission Credits 0.00 Intercompany Transfers 1,325,000.00 Account Transfers 0.00 0.00 0.00 TOTAL OTHER RECEIPTS $ 2,639.73 $ 15,814.25 $1,343,453.98 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 25,870.04 Severance tax 0.00 Pre-petition checks voided in current period 0.00 Insiders 0.00 Restricted Cash Transactions 0.00 Contract Services 429,682.39 Licenses / Fees / Permits 10,257.00 Freight 79,432.27 Account Transfers 190,000.00 Outstanding checks to Balance to G/L 23,440.88 CIT Revolver Payments $1,290,098.95 1,558,122.81 TOTAL OTHER DISBURSEMENTS $1,290,098.95 $ 0.00 $2,316,805.39
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H-11 CASH ACCOUNT RECONCILIATION MONTH OF JUNE 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 $ 45 $ 28,352 $ 76,626 $ 2,824 $ 12,363 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 45 28,352 $ 76,626 $ 2,824 $ 12,363 $ -- ================================================================================================================================= BEGINNING CASH - PER BOOKS $ 361 $ 81,342 $ 60,812 $ 12,950 $ 100 $ -- RECEIPTS 1,237,109 15,814 280,287 TRANSFERS BETWEEN ACCOUNTS 945,000 -- 190,000 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (945,316) (1,290,099) (200,125) (268,024) ENDING CASH - PER BOOKS $ 45 $ 28,352 $ 76,626 $ 2,824 $ 12,363 $ -- ================================================================================================================================= BANK NAME ACCOUNT NUMBER ACCOUNT TYPE TOTAL - -------------- ----------- BANK BALANCE $ 120,211 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 120,211 =========================================== BEGINNING CASH - PER BOOKS $ 155,565 RECEIPTS 1,533,210 TRANSFERS BETWEEN ACCOUNTS 1,135,000 (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (2,703,564) ENDING CASH - PER BOOKS $ 120,210 ===========================================
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) Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 DATE - ------------------------------------- -------- -------- -------- -------- --------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-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 h98580exv99w5.txt MONTHLY OPERATING RPT - STERLING CHEMICALS 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: JUNE YEAR: 2002
MONTH 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 - ----------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 88,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 66,830 $ 77,363 $ 81,888 $ 79,933 $ 77,397 $ 67,212 $ 83,333 NET INCOME (LOSS) (MOR-6) $ 6,165 $ 16,698 $ 21,223 $ 19,268 $ 16,732 $ 6,547 $ 22,668 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 7/19/02 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 7/19/02
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 JUNE 30, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 171 $ 2,128 $ - $ 120 Trade accounts receivable, net - 76,785 71 2,901 Other Receivables - 1,848 - 3,006 Due from affiliates 1,027 25,130 13,785 - Inventories - 35,305 - 8,170 Prepaid expenses 33 6,018 - 96 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,231 147,214 13,856 14,293 Property, plant and equipment, net - 119,003 2,760 5,882 Deferred income taxes - - - - Investments-Third Party - 1,500 5,281 - Investments in Subs 35,060 94,735 - - Other assets 865 34,417 - 1,209 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,156 $ 396,869 $ 21,897 $ 21,384 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 191,570 1,364 7,086 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 41,276 - 10,366 Unsecured debt 186,538 260,286 1,110 70,656 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,047) (56,215) 4,089 (9,719) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,679) (507,054) 19,423 (139,774) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,679) (509,591) 19,423 (139,774) TOTAL LIABILITIES AND EQUITY $ 37,156 $ 396,869 $ 21,897 $ 21,384 ====================================================================================
------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 148 $ - $ - Trade accounts receivable, net - 2,670 864 4,588 Other Receivables - 4,397 - - Due from affiliates 3,384 (3,384) 56,860 630 8,176 Inventories - - 100 1,790 Prepaid expenses - - - 103 Deferred income tax benefit - - - - --------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,384 (3,384) 64,075 1,594 14,657 Property, plant and equipment, net - - - 41,674 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,393 - Other assets 2,547 2,721 - - -------------------------------------------------------------------------------------- TOTAL ASSETS $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ====================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 (413) 24,654 445 1,381 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 662 12,165 - - Unsecured debt 1,123 (2,971) 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 1,392 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (360) 782 (771) (10,303) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - -------------------------------------------------------------------------------------- 419 - (6,416) 2,372 (7,393) Treasury stock at cost - - - - -------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 419 - (6,416) 2,372 (7,393) TOTAL LIABILITIES AND EQUITY $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ======================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,567 Trade accounts receivable, net - 87,879 Other Receivables - 9,251 Due from affiliates (109,506) (514) Inventories - 45,365 Prepaid expenses - 6,250 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (109,506) 150,798 Property, plant and equipment, net - 169,319 Deferred income taxes - - Investments-Third Party - 6,781 Investments in Subs (381,546) 45,453 Other assets (1) 41,758 -------------------------------- TOTAL ASSETS $(491,053) $ 414,109 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,871) 181,704 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,028) 53,441 Unsecured debt (133,138) 714,140 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,122) (546,056) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (73,544) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,123) (855,225) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,123) (857,762) TOTAL LIABILITIES AND EQUITY $(491,053) $ 414,109 ================================
* 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
-------------------------------------------------------------------------------- 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 (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 JUNE 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 72,397 $ 72,397 $ -- $ -- $ -- $ -- 31-60 922 922 -- -- -- -- 61-90 542 542 -- -- -- -- 91 + 28,457 28,457 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $102,318 $102,318 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JUNE 30, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, HOLDINGS, INC. INC. ENERGY, INC. INC. MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 48,626,030 $ 184,425 $ 1,693,508 TOTAL COST OF REVENUES -- 40,486,413 184,425 2,087,717 GROSS PROFIT $ -- $ 8,139,617 $ -- $ (394,209) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 932 $ 1,540,817 $ -- $ 117,412 Insiders Compensation -- 131,411 -- -- Professional Fees -- 1,350,558 -- -- Other (Earnings in Joint Venture) -- (2,284,592) (49,066) -- TOTAL OPERATING EXPENSE $ 932 $ 738,194 $ (49,066) $ 117,412 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (932) $ 7,401,423 $ 49,066 $ (511,621) INTEREST EXPENSE (includes amort of debt fees) -- 2,697,876 -- 614,434 DEPRECIATION -- 1,955,162 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,653,038 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (932) $ 2,748,385 $ 49,066 $ (1,173,671) INCOME TAXES -- -- 2,334 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (932) $ 2,748,385 $ 46,732 $ (1,173,671) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 617,525 $ 360,103 TOTAL COST OF REVENUES -- 59,458 460,832 GROSS PROFIT $ 83,333 $ 558,067 $ (100,729) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 231,893 $ (65,492) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 231,893 $ (65,492) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 326,174 $ (35,237) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,554 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,349 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (338,175) $ (35,237) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (338,175) $ (35,237) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,272,103 $ (83,333) $ 54,753,694 TOTAL COST OF REVENUES 1,859,446 (83,333) 45,054,958 GROSS PROFIT $ 1,412,657 $ -- $ 9,698,736 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,865 $ (540,881) 1,893,546 Insiders Compensation -- -- 131,411 Professional Fees -- -- 1,350,558 Other (Earnings in Joint Venture) -- -- (2,333,658) TOTAL OPERATING EXPENSE $ 608,865 $ (540,881) $ 1,041,857 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 803,792 $ 540,881 8,656,879 INTEREST EXPENSE (includes amort of debt fees) -- 540,881 4,069,410 DEPRECIATION 326,102 -- 2,837,675 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,102 $ 540,881 $ 6,907,085 ================================================================================================================= NET INCOME BEFORE TAXES $ 477,690 $ -- $ 1,749,794 INCOME TAXES -- -- 2,334 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 477,690 $ -- $ 1,747,460 =================================================================================================================
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 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-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: Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-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 JUNE 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) Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-02 DATE ------------------------------------- -------- -------- -------- -------- ------------ -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-02 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 h98580exv99w6.txt MONTHLY OPERATING RPT - STERLING CANADA, INC. EXHIBIT 99.6 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CANADA, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37810-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: JUNE YEAR: 2002
12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 MONTH Revised Revised Revised Revised - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $1,156,830 $1,059,266 $1,059,266 $ 1,087,139 $ 1,076,963 $ 1,059,266 $ 617,525 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 662,161 $ 584,521 $ 781,134 $ 786,914 $ 765,999 $ 750,049 $ 326,174 NET INCOME (LOSS) (MOR-6) $ 15,785 $ (61,844) $ 80,692 $ 140,569 $ 101,602 $ 103,679 $ (338,175) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ 417,049 $2,043,090 $1,041,816 $ 298,056 $ 1,479,491 $ 1,387,906 $ 186,246 (1) Excludes intercompany transfers as follows: $ 713,016 $ 924,751 $ -- $ 981,639 $ 647,602 $ -- $1,102,126
***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 7/19/02 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 7/19/02
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 JUNE 30, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 171 $ 2,128 $ - $ 120 Trade accounts receivable, net - 76,785 71 2,901 Other Receivables - 1,848 - 3,006 Due from affiliates 1,027 25,130 13,785 - Inventories - 35,305 - 8,170 Prepaid expenses 33 6,018 - 96 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,231 147,214 13,856 14,293 Property, plant and equipment, net - 119,003 2,760 5,882 Deferred income taxes - - - - Investments-Third Party - 1,500 5,281 - Investments in Subs 35,060 94,735 - - Other assets 865 34,417 - 1,209 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,156 $ 396,869 $ 21,897 $ 21,384 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 191,570 1,364 7,086 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 41,276 - 10,366 Unsecured debt 186,538 260,286 1,110 70,656 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,047) (56,215) 4,089 (9,719) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,679) (507,054) 19,423 (139,774) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,679) (509,591) 19,423 (139,774) TOTAL LIABILITIES AND EQUITY $ 37,156 $ 396,869 $ 21,897 $ 21,384 ====================================================================================
------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 148 $ - $ - Trade accounts receivable, net - 2,670 864 4,588 Other Receivables - 4,397 - - Due from affiliates 3,384 (3,384) 56,860 630 8,176 Inventories - - 100 1,790 Prepaid expenses - - - 103 Deferred income tax benefit - - - - --------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,384 (3,384) 64,075 1,594 14,657 Property, plant and equipment, net - - - 41,674 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,393 - Other assets 2,547 2,721 - - -------------------------------------------------------------------------------------- TOTAL ASSETS $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ====================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 (413) 24,654 445 1,381 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 662 12,165 - - Unsecured debt 1,123 (2,971) 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 1,392 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (360) 782 (771) (10,303) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - -------------------------------------------------------------------------------------- 419 - (6,416) 2,372 (7,393) Treasury stock at cost - - - - -------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 419 - (6,416) 2,372 (7,393) TOTAL LIABILITIES AND EQUITY $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ======================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,567 Trade accounts receivable, net - 87,879 Other Receivables - 9,251 Due from affiliates (109,506) (514) Inventories - 45,365 Prepaid expenses - 6,250 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (109,506) 150,798 Property, plant and equipment, net - 169,319 Deferred income taxes - - Investments-Third Party - 6,781 Investments in Subs (381,546) 45,453 Other assets (1) 41,758 -------------------------------- TOTAL ASSETS $(491,053) $ 414,109 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,871) 181,704 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,028) 53,441 Unsecured debt (133,138) 714,140 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,122) (546,056) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (73,544) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,123) (855,225) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,123) (857,762) TOTAL LIABILITIES AND EQUITY $(491,053) $ 414,109 ================================
* 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
--------------------------------------------------------------------------------------------- Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 --------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 420 $ 440 $ 656 $ 326 $ 305 $ 596 $ 218 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 8 35 13 $ 12 24 18 8 TOTAL TAXES PAYABLE $ 8 $ 35 13 12 $ 24 $ 18 $ 8 SECURED DEBT POST-PETITION -- -- -- ACCRUED INTEREST PAYABLE -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 110 130 150 170 50 70 90 2. Lease Operating Expenses/Capital -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 19,946 $ 20,014 $ 20,228 $ 19,917 $ 19,787 $ 20,093 $ 19,725 ====================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JUNE 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 72,397 $ 72,397 $ -- $ -- $ -- $ -- 31-60 922 922 -- -- -- -- 61-90 542 542 -- -- -- -- 91 + 28,457 28,457 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $102,318 $102,318 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JUNE 30, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, HOLDINGS, INC. INC. ENERGY, INC. INC. MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 48,626,030 $ 184,425 $ 1,693,508 TOTAL COST OF REVENUES -- 40,486,413 184,425 2,087,717 GROSS PROFIT $ -- $ 8,139,617 $ -- $ (394,209) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 932 $ 1,540,817 $ -- $ 117,412 Insiders Compensation -- 131,411 -- -- Professional Fees -- 1,350,558 -- -- Other (Earnings in Joint Venture) -- (2,284,592) (49,066) -- TOTAL OPERATING EXPENSE $ 932 $ 738,194 $ (49,066) $ 117,412 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (932) $ 7,401,423 $ 49,066 $ (511,621) INTEREST EXPENSE (includes amort of debt fees) -- 2,697,876 -- 614,434 DEPRECIATION -- 1,955,162 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,653,038 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (932) $ 2,748,385 $ 49,066 $ (1,173,671) INCOME TAXES -- -- 2,334 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (932) $ 2,748,385 $ 46,732 $ (1,173,671) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 617,525 $ 360,103 TOTAL COST OF REVENUES -- 59,458 460,832 GROSS PROFIT $ 83,333 $ 558,067 $ (100,729) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 231,893 $ (65,492) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 231,893 $ (65,492) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 326,174 $ (35,237) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,554 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,349 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (338,175) $ (35,237) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (338,175) $ (35,237) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,272,103 $ (83,333) $ 54,753,694 TOTAL COST OF REVENUES 1,859,446 (83,333) 45,054,958 GROSS PROFIT $ 1,412,657 $ -- $ 9,698,736 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,865 $ (540,881) 1,893,546 Insiders Compensation -- -- 131,411 Professional Fees -- -- 1,350,558 Other (Earnings in Joint Venture) -- -- (2,333,658) TOTAL OPERATING EXPENSE $ 608,865 $ (540,881) $ 1,041,857 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 803,792 $ 540,881 8,656,879 INTEREST EXPENSE (includes amort of debt fees) -- 540,881 4,069,410 DEPRECIATION 326,102 -- 2,837,675 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,102 $ 540,881 $ 6,907,085 ================================================================================================================= NET INCOME BEFORE TAXES $ 477,690 $ -- $ 1,749,794 INCOME TAXES -- -- 2,334 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 477,690 $ -- $ 1,747,460 =================================================================================================================
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 Dec-01 Jan-02 Feb-02 Mar-02 - ----------------------------------------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 9,021 $ 19,490 $ (45,956) $ (13,573) RECEIPTS: 2. CASH SALES $ 392,516 $ $ 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,978,631 969,180 242,792 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 748,018 923,764 105,019 1,063,679 TOTAL RECEIPTS $ 1,140,534 $ 2,902,395 $ 1,074,199 $ 1,306,464 (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 15,790 7,707 35,293 13,458 10. SECURED/RENTAL/LEASES 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 107,893 143,435 9,970 137,451 18. OTHER (attach list) 1,006,383 2,816,699 996,552 1,128,786 TOTAL DISBURSEMENTS FROM OPERATIONS $ 1,130,065 $ 2,967,841 $ 1,041,816 $ 1,279,695 19. PROFESSIONAL FEES $ -- 20. U.S. TRUSTEE FEES -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- TOTAL DISBURSEMENTS $ 1,130,065 $ 2,967,841 $ 1,041,816 $ 1,279,695 22. NET CASH FLOW $ 10,469 $ (65,446) $ 32,383 $ 26,769 23. CASH - END OF MONTH (MOR-2) $ 19,490 $ (45,956) $ (13,573) $ 13,196 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 DATE - ----------------------------------------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 13,196 $ 164,030 $ 58,277 $ 271,082 RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,531,316 1,188,084 139,297 13,166,770 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 746,611 94,069 1,239,230 28,094,114 TOTAL RECEIPTS $ 2,277,927 $ 1,282,153 $ 1,378,527 $ 41,260,884 (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 12,292 23,843 17,807 252,617 10. SECURED/RENTAL/LEASES -- -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 177,328 151,494 975,588 18. OTHER (attach list) 1,937,473 1,364,063 1,119,071 40,155,329 TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,127,093 $ 1,387,906 $ 1,288,372 $ 41,383,534 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 2,127,093 $ 1,387,906 $ 1,288,372 $ 41,383,534 22. NET CASH FLOW $ 150,833 $ (105,753) $ 90,155 $ (122,650) 23. CASH - END OF MONTH (MOR-2) $ 164,030 $ 58,277 $ 148,432 $ 148,432
MOR-7 CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: Dec-01 Jan-02 Feb-02 Mar-02 - ----------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income 2 13 19 $ 33 401(k) Plan Refund -- Cobra Insurance Payment -- Miscellaneous -- Advance from Parent company - Sterling Chemicals -- 105,000 Loan Advance from a subsidiary - Sterling NRO -- Return of investment from SPCUS 107,183 -- Rec'd in error, to be returned in Sep 01 SPC Ltd -- cash receipts re Inter company AR 640,833 923,751 1,063,639 rec'd in error and to be returned in Nov 01. -- TOTAL OTHER RECEIPTS $ 748,018 $ 923,764 $ 105,019 $ 1,063,672 18. OTHER DISBURSEMENTS: Workover Expense -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals 484,482 119,811 949,787 cash disbursements re Inter company AP 228,534 440,050 31,852 CIT revolver cash sweep 293,367 1,891,948 996,552 147,147 Capital contribution to SPCUS 364,890 TOTAL OTHER DISBURSEMENTS $1,006,383 $ 2,816,699 $ 996,552 $ 1,128,786 OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Apr-02 May-02 Jun-02 DATE - -------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 9 $ 8 57 $ 1,637 401(k) Plan Refund -- Cobra Insurance Payment -- Miscellaneous 2,061 48 6,031 Advance from Parent company - Sterling Chemicals 99,000 92,000 137,000 433,000 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 558,861 1,102,125 6,350,493 rec'd in error and to be returned in Nov 01. 234,658 TOTAL OTHER RECEIPTS $ 746,611 $ 94,069 $1,239,230 $ 28,094,114 18. OTHER DISBURSEMENTS: Workover Expense -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals 351,178 604,865 27,218,147 cash disbursements re Inter company AP 296,424 497,261 2,612,320 CIT revolver cash sweep 1,289,871 1,364,063 16,945 9,891,619 Capital contribution to SPCUS 433,243 TOTAL OTHER DISBURSEMENTS $ 1,937,473 $1,364,063 $1,119,071 $ 40,155,329
MOR-7 ATTACHMENT CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF JUNE-02
Bank One Chase Manhattan Chase Manhattan CIBC CASH RECEIPTS AND 5561841 001-00526970 001-03317054 77-01713 DISBURSEMENTS Lock Box General Checking Checking Total ----------------- --------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH 1,000 100 69 57,108 58,277 =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 16,945 -- 122,352 139,297 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) -- -- 1,239,125 105 1,239,230 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 16,945 -- 1,361,477 105 1,378,527 --------------- --------------- --------------- --------------- --------------- (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 -- 17,807 17,807 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 141,031 10,463 151,494 18. OTHER (attach list) 16,945 -- 1,102,126 -- 1,119,071 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 16,945 -- 1,243,157 28,270 1,288,372 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 16,945 -- 1,243,157 28,270 1,288,372 =============== =============== =============== =============== =============== 22. NET CASH FLOW -- -- 118,321 (28,165) 90,156 23. CASH - END OF MONTH (MOR-2) 1,000 100 118,390 28,943 148,433
MOR-7 * Applies to Individual debtor's only. CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF JUNE-02
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 137,000 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 1,102,125 rec'd in error and to be returned in Oct 01. TOTAL OTHER RECEIPTS $ -- $ -- $1,239,125 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 604,865 cash disbursements re Inter company AP 497,261 CIT revolver cash sweep 16,945 -- Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 16,945 $ -- $1,102,126 CIBC OTHER CASH RECEIPTS AND 77-01713 DISBURSEMENTS: Checking Total - --------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 57 $ 57 401(k) Plan Refund -- Advance from Parent company - Sterling Chemicals 137,000 Miscellaneous -- Transfer Between Accounts 48 48 Loan Advance from a subsidiary - Sterling NRO -- Funds belonging to Sterling Pulp Chemicals Ltd. -- Return of investment from SPCUS -- cash receipts re Inter company AR 1,102,125 rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ 105 $ 1,239,230 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals -- 604,865 cash disbursements re Inter company AP -- 497,261 CIT revolver cash sweep 16,945 Capital contribution to SPCUS -- TOTAL OTHER DISBURSEMENTS $ -- $ 1,119,071
MOR-7 ATTACHMENT CASE NAME: Sterling Canada, Inc. CASE NUMBER: 01-37810-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF JUNE-02
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 $ 126,299 $ 127,399 $ 46,750 $ 174,149 DEPOSIT IN TRANSIT -- -- OUTSTANDING CHECKS (7,909) (7,909) (17,807) (25,716) ADJUSTED BANK BALANCE $ 1,000 $ 100 $ 118,390 $ 119,490 $ 28,943 $ 148,433 BEGINNING CASH - PER BOOKS $ 1,000 $ 100 $ 69 $ 1,169 $ 57,107 $ 58,276 RECEIPTS 16,945 -- 1,361,477 1,378,422 105 1,378,528 TRANSFERS BETWEEN ACCOUNTS -- -- -- -- (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (16,945) -- (1,243,156) (1,260,101) (28,270) $ (1,288,371) ENDING CASH - PER BOOKS $ 1,000 $ 100 $ 118,390 $ 119,490 $ 28,943 $ 148,433
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 Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 FILING TO /COMP TYPE (2) DATE - --------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-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 h98580exv99w7.txt MONTHLY OPERATING RPT - STERLING PULP CHEMICALS 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: JUNE YEAR: 2002
MONTH 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 - ----------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $288,348 $328,152 $239,252 $ 286,617 $ 365,854 $ 332,686 $360,103 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $(77,489) $(81,177) $(59,026) $ (49,004) $ (54,804) $ (62,294) $(35,237) NET INCOME (LOSS) (MOR-6) $(77,489) $(81,177) $(59,026) $ (49,004) $ (54,804) $ (62,294) $(35,237) 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 7/19/02 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 7/19/02
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 JUNE 30, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 171 $ 2,128 $ - $ 120 Trade accounts receivable, net - 76,785 71 2,901 Other Receivables - 1,848 - 3,006 Due from affiliates 1,027 25,130 13,785 - Inventories - 35,305 - 8,170 Prepaid expenses 33 6,018 - 96 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,231 147,214 13,856 14,293 Property, plant and equipment, net - 119,003 2,760 5,882 Deferred income taxes - - - - Investments-Third Party - 1,500 5,281 - Investments in Subs 35,060 94,735 - - Other assets 865 34,417 - 1,209 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,156 $ 396,869 $ 21,897 $ 21,384 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 191,570 1,364 7,086 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 41,276 - 10,366 Unsecured debt 186,538 260,286 1,110 70,656 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,047) (56,215) 4,089 (9,719) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,679) (507,054) 19,423 (139,774) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,679) (509,591) 19,423 (139,774) TOTAL LIABILITIES AND EQUITY $ 37,156 $ 396,869 $ 21,897 $ 21,384 ====================================================================================
------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 148 $ - $ - Trade accounts receivable, net - 2,670 864 4,588 Other Receivables - 4,397 - - Due from affiliates 3,384 (3,384) 56,860 630 8,176 Inventories - - 100 1,790 Prepaid expenses - - - 103 Deferred income tax benefit - - - - --------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,384 (3,384) 64,075 1,594 14,657 Property, plant and equipment, net - - - 41,674 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,393 - Other assets 2,547 2,721 - - -------------------------------------------------------------------------------------- TOTAL ASSETS $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ====================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 (413) 24,654 445 1,381 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 662 12,165 - - Unsecured debt 1,123 (2,971) 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 1,392 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (360) 782 (771) (10,303) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - -------------------------------------------------------------------------------------- 419 - (6,416) 2,372 (7,393) Treasury stock at cost - - - - -------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 419 - (6,416) 2,372 (7,393) TOTAL LIABILITIES AND EQUITY $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ======================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,567 Trade accounts receivable, net - 87,879 Other Receivables - 9,251 Due from affiliates (109,506) (514) Inventories - 45,365 Prepaid expenses - 6,250 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (109,506) 150,798 Property, plant and equipment, net - 169,319 Deferred income taxes - - Investments-Third Party - 6,781 Investments in Subs (381,546) 45,453 Other assets (1) 41,758 -------------------------------- TOTAL ASSETS $(491,053) $ 414,109 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,871) 181,704 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,028) 53,441 Unsecured debt (133,138) 714,140 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,122) (546,056) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (73,544) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,123) (855,225) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,123) (857,762) TOTAL LIABILITIES AND EQUITY $(491,053) $ 414,109 ================================
* 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
------------------------------------------------------------------------------------------ Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 ------------------------------------------------------------------------------------------ TRADE ACCOUNTS PAYABLE $ 505 $ 515 $ 949 $ 367 $ 518 $ 936 $ 416 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 127 133 114 94 19 25 29 2. Lease Operating Expenses/Capital -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 632 $ 648 $ 1,063 $ 461 $ 537 $ 962 $ 445 =================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JUNE 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 72,397 $ 72,397 $ -- $ -- $ -- $ -- 31-60 922 922 -- -- -- -- 61-90 542 542 -- -- -- -- 91 + 28,457 28,457 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $102,318 $102,318 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JUNE 30, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, HOLDINGS, INC. INC. ENERGY, INC. INC. MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 48,626,030 $ 184,425 $ 1,693,508 TOTAL COST OF REVENUES -- 40,486,413 184,425 2,087,717 GROSS PROFIT $ -- $ 8,139,617 $ -- $ (394,209) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 932 $ 1,540,817 $ -- $ 117,412 Insiders Compensation -- 131,411 -- -- Professional Fees -- 1,350,558 -- -- Other (Earnings in Joint Venture) -- (2,284,592) (49,066) -- TOTAL OPERATING EXPENSE $ 932 $ 738,194 $ (49,066) $ 117,412 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (932) $ 7,401,423 $ 49,066 $ (511,621) INTEREST EXPENSE (includes amort of debt fees) -- 2,697,876 -- 614,434 DEPRECIATION -- 1,955,162 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,653,038 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (932) $ 2,748,385 $ 49,066 $ (1,173,671) INCOME TAXES -- -- 2,334 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (932) $ 2,748,385 $ 46,732 $ (1,173,671) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 617,525 $ 360,103 TOTAL COST OF REVENUES -- 59,458 460,832 GROSS PROFIT $ 83,333 $ 558,067 $ (100,729) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 231,893 $ (65,492) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 231,893 $ (65,492) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 326,174 $ (35,237) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,554 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,349 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (338,175) $ (35,237) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (338,175) $ (35,237) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,272,103 $ (83,333) $ 54,753,694 TOTAL COST OF REVENUES 1,859,446 (83,333) 45,054,958 GROSS PROFIT $ 1,412,657 $ -- $ 9,698,736 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,865 $ (540,881) 1,893,546 Insiders Compensation -- -- 131,411 Professional Fees -- -- 1,350,558 Other (Earnings in Joint Venture) -- -- (2,333,658) TOTAL OPERATING EXPENSE $ 608,865 $ (540,881) $ 1,041,857 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 803,792 $ 540,881 8,656,879 INTEREST EXPENSE (includes amort of debt fees) -- 540,881 4,069,410 DEPRECIATION 326,102 -- 2,837,675 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,102 $ 540,881 $ 6,907,085 ================================================================================================================= NET INCOME BEFORE TAXES $ 477,690 $ -- $ 1,749,794 INCOME TAXES -- -- 2,334 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 477,690 $ -- $ 1,747,460 =================================================================================================================
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 12/31/01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 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 12/13/-01 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 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 JUNE 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.)
=================================================================================================================================== Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE - ----------------------------------------------------------------------------------------------------------------------------------- 1. $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 2. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 3. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 7. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 8. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 9. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INSIDERS (MOR-1) $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================================================
=================================================================================================================================== Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-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 h98580exv99w8.txt MONTHLY OPERATING RPT - STERLING PULP CHEM., INC. 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: JUNE YEAR: 2002
12/31/01 1/31/02 2/28/02 MONTH Revised Revised - -------------------------------------------------------------------------------- REVENUES (MOR-6) $3,383,414 $3,335,583 $3,227,039 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 686,339 $ 639,912 $ 573,082 NET INCOME (LOSS) (MOR-6) $ 281,280 $ 232,478 $ 245,985 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $4,334,706 $6,098,766 $4,778,478 (1) Excludes intercompany transfers as follows: $1,107,530 $1,160,015 $ -- 3/31/02 4/30/02 5/31/02 6/30/02 MONTH Revised Revised - -------------------------------------------------------------------------------------------- REVENUES (MOR-6) $3,175,608 $3,332,627 $3,292,539 $3,272,103 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 561,378 692,530 $ 685,631 $ 803,792 NET INCOME (LOSS) (MOR-6) $ 236,593 365,040 $ 359,532 $ 477,690 PAYMENTS TO INSIDERS (MOR-9) $ -- -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $4,967,073 $5,480,057 $5,781,161 $4,377,813 (1) Excludes intercompany transfers as follows: $2,038,617 $ 773,455 $ -- $1,801,682
***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 7/19/02 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 7/19/02
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 JUNE 30, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 171 $ 2,128 $ - $ 120 Trade accounts receivable, net - 76,785 71 2,901 Other Receivables - 1,848 - 3,006 Due from affiliates 1,027 25,130 13,785 - Inventories - 35,305 - 8,170 Prepaid expenses 33 6,018 - 96 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,231 147,214 13,856 14,293 Property, plant and equipment, net - 119,003 2,760 5,882 Deferred income taxes - - - - Investments-Third Party - 1,500 5,281 - Investments in Subs 35,060 94,735 - - Other assets 865 34,417 - 1,209 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,156 $ 396,869 $ 21,897 $ 21,384 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) - 191,570 1,364 7,086 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 41,276 - 10,366 Unsecured debt 186,538 260,286 1,110 70,656 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,794 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,047) (56,215) 4,089 (9,719) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,679) (507,054) 19,423 (139,774) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,679) (509,591) 19,423 (139,774) TOTAL LIABILITIES AND EQUITY $ 37,156 $ 396,869 $ 21,897 $ 21,384 ====================================================================================
------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. FIBERS INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 ELIMINATIONS 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 ------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 148 $ - $ - Trade accounts receivable, net - 2,670 864 4,588 Other Receivables - 4,397 - - Due from affiliates 3,384 (3,384) 56,860 630 8,176 Inventories - - 100 1,790 Prepaid expenses - - - 103 Deferred income tax benefit - - - - --------------------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,384 (3,384) 64,075 1,594 14,657 Property, plant and equipment, net - - - 41,674 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,393 - Other assets 2,547 2,721 - - -------------------------------------------------------------------------------------- TOTAL ASSETS $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ====================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 75 (413) 24,654 445 1,381 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 662 12,165 - - Unsecured debt 1,123 (2,971) 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 1,392 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (360) 782 (771) (10,303) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - -------------------------------------------------------------------------------------- 419 - (6,416) 2,372 (7,393) Treasury stock at cost - - - - -------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 419 - (6,416) 2,372 (7,393) TOTAL LIABILITIES AND EQUITY $ 5,931 $ (3,384) $ 362,607 $ 2,987 $ 56,331 ======================================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 2,567 Trade accounts receivable, net - 87,879 Other Receivables - 9,251 Due from affiliates (109,506) (514) Inventories - 45,365 Prepaid expenses - 6,250 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (109,506) 150,798 Property, plant and equipment, net - 169,319 Deferred income taxes - - Investments-Third Party - 6,781 Investments in Subs (381,546) 45,453 Other assets (1) 41,758 -------------------------------- TOTAL ASSETS $(491,053) $ 414,109 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (44,871) 181,704 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,028) 53,441 Unsecured debt (133,138) 714,140 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,297 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,122) (546,056) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (73,544) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,123) (855,225) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,123) (857,762) TOTAL LIABILITIES AND EQUITY $(491,053) $ 414,109 ================================
* 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
------------------------------------------------------------------------------------------- Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 ------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 1,088 $ 1,438 2,652 $ 1,043 $ 1,242 $ 2,368 $ 773 ROYALTY AND REVENUE PAYABLE -- NOTES PAYABLE - INSURANCE -- TAX PAYABLE: -- Federal Payroll Taxes -- State Payroll & Sales -- Ad Valorem Taxes -- Other Taxes 129 155 100 120 113 27 54 TOTAL TAXES PAYABLE $ 129 $ 155 $ 100 $ 120 $ 113 $ 27 $ 54 SECURED DEBT POST-PETITION -- ACCRUED INTEREST PAYABLE -- *ACCRUED PROFESSIONAL FEES: -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 487 360 321 374 354 422 442 2. Lease Operating Expenses/Capital -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 1,703 $ 1,953 $ 3,073 $ 1,537 $ 1,709 $ 2,817 $ 1,269 =================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JUNE 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $181,704 $ 171,394 $ 98 $ 406 $ 4,877 $ 4,929 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 72,397 $ 72,397 $ -- $ -- $ -- $ -- 31-60 922 922 -- -- -- -- 61-90 542 542 -- -- -- -- 91 + 28,457 28,457 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $102,318 $102,318 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JUNE 30, 2002 STATEMENT OF INCOME (LOSS)
STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS, HOLDINGS, INC. INC. ENERGY, INC. INC. MONTH 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 ------------------ ------------------ ------------------ ------------------ REVENUES (MOR-1) $ -- $ 48,626,030 $ 184,425 $ 1,693,508 TOTAL COST OF REVENUES -- 40,486,413 184,425 2,087,717 GROSS PROFIT $ -- $ 8,139,617 $ -- $ (394,209) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 932 $ 1,540,817 $ -- $ 117,412 Insiders Compensation -- 131,411 -- -- Professional Fees -- 1,350,558 -- -- Other (Earnings in Joint Venture) -- (2,284,592) (49,066) -- TOTAL OPERATING EXPENSE $ 932 $ 738,194 $ (49,066) $ 117,412 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (932) $ 7,401,423 $ 49,066 $ (511,621) INTEREST EXPENSE (includes amort of debt fees) -- 2,697,876 -- 614,434 DEPRECIATION -- 1,955,162 -- 47,616 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,653,038 $ -- $ 662,050 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (932) $ 2,748,385 $ 49,066 $ (1,173,671) INCOME TAXES -- -- 2,334 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (932) $ 2,748,385 $ 46,732 $ (1,173,671) ==================================================================================================================================== STERLING CHEMICALS STERLING CANADA, STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. MONTH 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 ------------------- ------------------ ------------------ REVENUES (MOR-1) $ 83,333 $ 617,525 $ 360,103 TOTAL COST OF REVENUES -- 59,458 460,832 GROSS PROFIT $ 83,333 $ 558,067 $ (100,729) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 231,893 $ (65,492) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 231,893 $ (65,492) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 326,174 $ (35,237) INTEREST EXPENSE (includes amort of debt fees) 37,665 178,554 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 664,349 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (338,175) $ (35,237) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (338,175) $ (35,237) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,272,103 $ (83,333) $ 54,753,694 TOTAL COST OF REVENUES 1,859,446 (83,333) 45,054,958 GROSS PROFIT $ 1,412,657 $ -- $ 9,698,736 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 608,865 $ (540,881) 1,893,546 Insiders Compensation -- -- 131,411 Professional Fees -- -- 1,350,558 Other (Earnings in Joint Venture) -- -- (2,333,658) TOTAL OPERATING EXPENSE $ 608,865 $ (540,881) $ 1,041,857 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 803,792 $ 540,881 8,656,879 INTEREST EXPENSE (includes amort of debt fees) -- 540,881 4,069,410 DEPRECIATION 326,102 -- 2,837,675 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,102 $ 540,881 $ 6,907,085 ================================================================================================================= NET INCOME BEFORE TAXES $ 477,690 $ -- $ 1,749,794 INCOME TAXES -- -- 2,334 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 477,690 $ -- $ 1,747,460 =================================================================================================================
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 Dec-01 Jan-02 Feb-02 Mar-02 - ------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ (13,646) $ 147,113 $ 50,128 $ (45,869) ---------- ---------- ---------- ------------ RECEIPTS: 2. CASH SALES $ -- $ -- $ ---------- ---------- ------------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,431,379 4,683,780 2,872,054 3,070,216 ---------- ---------- ---------- ------------ 4. LOANS & ADVANCES (attach list) -- -- ---------- ---------- ------------ 5. SALE OF ASSETS -- -- ---------- ---------- ------------ 6. OTHER (attach list) 3,171,616 2,478,016 1,810,427 3,894,062 ---------- ---------- ---------- ------------ TOTAL RECEIPTS $5,602,995 $7,161,796 $4,682,481 $ 6,964,278 ---------- ---------- ---------- ------------ (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 -- 906 700 ---------- ---------- ------------ 10. SECURED/RENTAL/LEASES 1,472 669 680 1,070,005 ---------- ---------- ---------- ------------ 11. UTILITIES 1,118,571 682,974 1,207,375 -- ---------- ---------- ---------- ------------ 12. INSURANCE -- -- -- 269,741 ---------- ---------- ---------- ------------ 13. INVENTORY PURCHASES 296,353 289,263 245,145 46 ---------- ---------- ---------- ------------ 14. VEHICLE EXPENSES -- 142 -- 126 ---------- ---------- ---------- ------------ 15. TRAVEL & ENTERTAINMENT 2,238 2,751 2,334 130,331 ---------- ---------- ---------- ------------ 16. REPAIRS, MAINTENANCE & SUPPLIES 61,693 94,732 106,723 198,980 ---------- ---------- ---------- ------------ 17. ADMINISTRATIVE & SELLING 131,898 228,742 219,941 ---------- ---------- ---------- ------------ 18. OTHER (attach list) 3,830,011 5,959,508 2,995,373 5,335,761 ---------- ---------- ---------- ------------ TOTAL DISBURSEMENTS FROM OPERATIONS $5,442,236 $7,258,781 $4,778,478 $ 7,005,690 ---------- ---------- ---------- ------------ 19. PROFESSIONAL FEES $ -- $ -- $ -- ---------- ---------- ------------ 20. U.S. TRUSTEE FEES -- -- -- ---------- ---------- ------------ 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ---------- ---------- ------------ TOTAL DISBURSEMENTS $5,442,236 $7,258,781 $4,778,478 $ 7,005,690 ---------- ---------- ---------- ------------ 22. NET CASH FLOW $ 160,759 $ (96,985) $ (95,997 $ (41,412) ---------- ---------- ---------- ------------ 23. CASH - END OF MONTH (MOR-2) $ 147,113 $ 50,128 $ (45,869 $ (87,281) ========== ========== ========== ============ ============================================================================================================ CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 DATE ------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ (87,281) $ 48,725 $ (79,248) $ 308,953 ----------- ----------- ---------- ----------- RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- ----------- ----------- ---------- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,547,110 3,163,218 3,106,659 35,828,488 ----------- ----------- ---------- ----------- 4. LOANS & ADVANCES (attach list) -- -- -- -- ----------- ----------- ---------- ----------- 5. SALE OF ASSETS -- -- -- -- ----------- ----------- ---------- ----------- 6. OTHER (attach list) 2,842,408 2,489,971 3,079,681 33,615,481 ----------- ----------- ---------- ----------- TOTAL RECEIPTS $ 6,389,518 $ 5,653,189 $6,186,340 $69,443,969 ----------- ----------- ---------- ----------- (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 434 -- -- 2,040 ----------- ----------- ---------- ----------- 10. SECURED/RENTAL/LEASES 552 6,432 2,857 1,096,963 ----------- ----------- ---------- ----------- 11. UTILITIES 1,202,470 1,773,292 643,683 12,341,019 ----------- ----------- ---------- ----------- 12. INSURANCE -- -- -- 269,741 ----------- ----------- ---------- ----------- 13. INVENTORY PURCHASES 255,526 254,505 237,487 2,627,641 ----------- ----------- ---------- ----------- 14. VEHICLE EXPENSES -- -- -- 268 ----------- ----------- ---------- ----------- 15. TRAVEL & ENTERTAINMENT 265 6,628 8,209 166,782 ----------- ----------- ---------- ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 92,812 163,351 93,590 1,242,579 ----------- ----------- ---------- ----------- 17. ADMINISTRATIVE & SELLING 209,070 220,698 188,815 2,122,759 ----------- ----------- ---------- ----------- 18. OTHER (attach list) 4,492,383 3,356,255 5,004,854 49,955,533 ----------- ----------- ---------- ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,253,512 $ 5,781,161 $6,179,495 $69,825,325 ----------- ----------- ---------- ----------- 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- ----------- ----------- ---------- ----------- 20. U.S. TRUSTEE FEES -- -- -- -- ----------- ----------- ---------- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- ----------- ----------- ---------- ----------- TOTAL DISBURSEMENTS $ 6,253,512 $ 5,781,161 $6,179,495 $69,825,325 ----------- ----------- ---------- ----------- 22. NET CASH FLOW $ 136,006 $ (127,973) $ 6,845 $ (381,356) ----------- ----------- ---------- ----------- 23. CASH - END OF MONTH (MOR-2) $ 48,725 $ (79,248) $ (72,403) $ (72,403) =========== =========== ========== ===========
MOR-7 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
==================================================================================================================================== OTHER CASH RECEIPTS AND Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-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 223,586 36,733 43,427 9,445 265,953 147,898 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals 1,840,500 1,318,000 1,767,000 1,846,000 1,788,000 2,342,000 3,079,681 cash receipts re Inter company AR 1,107,530 927,448 -- 2,038,617 788,455 Capital Contribution from SPCUS 195,835 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER RECEIPTS $3,171,616 $2,478,016 $1,810,427 $3,894,062 $2,842,408 $2,489,971 $3,079,681 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 18.OTHER DISBURSEMENTS: Capital Expenditures $ 106,606 $ 45,835 $ 73,428 $ 150,489 $ 45,333 $ 13,337 $ 63,454 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 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 2,615,871 4,753,659 2,921,945 3,146,655 3,673,595 3,342,918 3,139,718 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS 237,864 -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- cash disbursements re Inter company AP 869,666 1,123,282 -- 2,038,617 773,455 1,801,682 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $3,830,011 $5,959,508 $2,995,373 $5,335,761 $4,492,383 $3,356,255 $5,004,854 ========== ========== ========== ========== ========== ========== ==========
========================================================= 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 22,735,181 cash receipts re Inter company AR Capital Contribution from SPCUS ----------- TOTAL OTHER RECEIPTS $24,071,733 ----------- 18.OTHER DISBURSEMENTS: Capital Expenditures $692,394.92 ----------- 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 $ 2,917,010 ===========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF JUNE 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 $ 108,666 $ 100 $ (204,938) $ 16,926 $ -- ------------ --------------- --------------- ---------------- ------ RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,593,781 512,878 -- ------------ --------------- --------------- ---------------- ------ 4. LOANS & ADVANCES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 5. SALE OF ASSETS -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 6. OTHER (attach list) -- -- 3,079,681 -- -- ------------ --------------- --------------- ---------------- ------ TOTAL RECEIPTS $ 2,593,781 $ 512,878 $ 3,079,681 $ -- $ -- ------------ --------------- --------------- ---------------- ------ (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 2,857 -- -- ------------ --------------- --------------- ---------------- ------ 11. UTILITIES 643,683 -- -- ------------ --------------- --------------- ---------------- ------ 12. INSURANCE -- -- -- ------------ --------------- --------------- ---------------- ------ 13. INVENTORY PURCHASES 237,487 -- -- ------------ --------------- --------------- ---------------- ------ 14. VEHICLE EXPENSES -- -- -- ------------ --------------- --------------- ---------------- ------ 15. TRAVEL & ENTERTAINMENT 8,209 -- -- ------------ --------------- --------------- ---------------- ------ 16. REPAIRS, MAINTENANCE & SUPPLIES 90,367 3,223 -- ------------ --------------- --------------- ---------------- ------ 17. ADMINISTRATIVE & SELLING 188,815 -- -- ------------ --------------- --------------- ---------------- ------ 18. OTHER (attach list) 2,626,840 512,878 1,865,136 -- -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,626,840 $ 512,878 $ 3,036,554 $ 3,223 $ -- ------------ --------------- --------------- ---------------- ------ 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 20. U.S. TRUSTEE FEES -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS $ 2,626,840 $ 512,878 $ 3,036,554 $ 3,223 $ -- ------------ --------------- --------------- ---------------- ------ 22. NET CASH FLOW $ (33,059) $ -- $ 43,127 $ (3,223) $ -- ------------ --------------- --------------- ---------------- ------ 23. CASH - END OF MONTH (MOR-2) $ 75,607 $ 100 $ (161,811) $ 13,703 $ -- ============ =============== =============== ================ ====== =================================================================== CASH RECEIPTS AND DISBURSEMENTS TOTAL ------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ (79,246) ----------- RECEIPTS: 2. CASH SALES $ -- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,106,659 ----------- 4. LOANS & ADVANCES (attach list) -- ----------- 5. SALE OF ASSETS -- ----------- 6. OTHER (attach list) 3,079,681 ----------- TOTAL RECEIPTS $ 6,186,340 ----------- (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 2,857 ----------- 11. UTILITIES 643,683 ----------- 12. INSURANCE -- ----------- 13. INVENTORY PURCHASES 237,487 ----------- 14. VEHICLE EXPENSES -- ----------- 15. TRAVEL & ENTERTAINMENT 8,209 ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 93,590 ----------- 17. ADMINISTRATIVE & SELLING 188,815 ----------- 18. OTHER (attach list) 5,004,854 ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,179,495 ----------- 19. PROFESSIONAL FEES $ -- ----------- 20. U.S. TRUSTEE FEES -- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- ----------- TOTAL DISBURSEMENTS $ 6,179,495 ----------- 22. NET CASH FLOW $ 6,845 ----------- 23. CASH - END OF MONTH (MOR-2) $ (72,401) ===========
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF JUNE 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 -- ---------- ---------- ---------- ---------- ---------- Transfer Between Accounts -- -- -- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals -- 3,079,681 -- 3,079,681 Funds belonging to Sterling Pulp Chemicals Ltd. -- -- -- -- 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 $ -- $ -- $3,079,681 $ -- $3,079,681 ---------- ---------- ---------- ---------- ---------- 18.OTHER DISBURSEMENTS: Transfer Between Accounts -- -- Capital Expenditures $ $ $ 63,454 $ -- $ 63,454 ---------- ---------- ---------- ---------- ---------- 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 1,801,682 1,801,682 ---------- ---------- ---------- ---------- ---------- CIT revolver cash sweep 2,626,840 512,878 3,139,718 ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS -- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $2,626,840 $ 512,878 $1,865,136 $ -- $5,004,854 ========== ========== ========== ========== ==========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11 CASH ACCOUNT RECONCILIATION MONTH OF JUNE 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 $ 75,607 $ 100 $ 881 $ 76,588 $ 15,184 $ 91,773 - ---------------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT 1,764 $ 1,764 1,764 - ---------------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS (164,458) (164,458) (1,481) (165,939) - ---------------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ 75,607 $ 100 $ (161,813) $ (86,105) $ 13,703 $ - $ - $ (72,402) - ---------------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOKS $ 108,666 $ 100 $ (204,939) $ (96,173) $ 16,926 (79,247) - ---------------------------------------------------------------------------------------------------------------------------------- RECEIPTS 2,593,781 512,878 3,079,681 6,186,340 - 6,186,340 - ---------------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS - - - - ---------------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - - ---------------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - - ---------------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS (2,626,840) (512,878) (3,036,554) (6,176,272) (3,223) (6,179,495) - ---------------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ 75,607 $ 100 $ (161,812) $ (86,105) $ 13,703 $ - $ - $ (72,402) ==================================================================================================================================
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.)
============================================================================================================================= Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE 1. $-- $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 7. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 8. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 9. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- TOTAL INSIDERS (MOR-1) $-- $-- $-- $-- $-- $-- $-- $-- === === === === === === === ===
============================================================================================================================= Dec-2001 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-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-----