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