-----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, PADZGKzem4a1NGgbMgG0vkeUPWiPaYDTQuC/60WeQgpozkeCJSP/2AJCH3GJoZSa qw6XPm/RY73YrrxpuKeWMQ== 0000950129-02-004353.txt : 20020823 0000950129-02-004353.hdr.sgml : 20020823 20020823152911 ACCESSION NUMBER: 0000950129-02-004353 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20020820 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020823 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: 02746988 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: 02746989 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 h99399e8vk.txt STERLING CHEMICALS HOLDINGS, INC. - 8/20/2002 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 8-K CURRENT REPORT FILED PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): August 20, 2002 STERLING CHEMICALS HOLDINGS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 1-00059 76-0185186 (STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.) OR ORGANIZATION) 1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------------------ STERLING CHEMICALS INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 333-04343-01 76-0502785 (STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.) OR ORGANIZATION) 1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------------------ ================================================================================ ITEM 7. EXHIBITS Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals Holdings, Inc. for July 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for July 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for July 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for July 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for July 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for July 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for July 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for July 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 July 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: August 23, 2002 By: /s/ DAVID G. ELKINS ------------------------------------- David G. Elkins, President STERLING CHEMICALS INC. Date: August 23, 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 July 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for July 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for July 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for July 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for July 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for July 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for July 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for July 2002. EX-99.1 3 h99399exv99w1.txt MONTHLY OPERATING RPT.-STERLING CHEMICALS HOLDINGS 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: JULY YEAR: 2002
MONTH 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 - ------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ -- $ -- $ -- $ -- $ -- $ -- $ -- INCOME BEFORE INT. DEPREC./TAX (MOR-6) $(51,350) $ (957) $ (960) $(46,778) $(12,965) $ (932) $ (41,359) NET INCOME (LOSS) (MOR-6) $(51,166) $ (775) $ (794) $(46,590) $(12,788) $ (932) $ (41,359) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $170,000 $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ -- $ -- $ -- $ -- $ -- $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 8/19/02 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 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 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 7/1/03 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 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 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 7/1/03 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 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 14 8/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Munich Re:, et. al. Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection mil., $10 mil extra expense. available; many other factors. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/03 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 8/21/03 Various Officers Liability 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/03 Various Liability Co. 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/04 Various Depositor's Forgery Agreement. Ded. $25,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values Ded. $5,000 per loss. of NY $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/03 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 8/21/03 Various Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss Chubb 1 year 2/20/03 Loss Potential Liability (Petrochem & $8,000,000 aggregate Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs ANNUAL TOTAL: *
* 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 JULY 31, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 1 $ 808 $ - $ 139 Trade accounts receivable, net - 63,159 65 2,912 Other Receivables - 500 - 3,048 Due from affiliates 1,375 25,754 13,785 - Inventories - 30,182 - 7,926 Prepaid expenses 33 4,422 - 92 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,825 13,850 14,117 Property, plant and equipment, net - 117,553 2,699 5,835 Deferred income taxes - - - - Investments-Third Party - 1,500 5,332 - Investments in Subs 35,060 94,735 - - Other assets 865 33,798 - 1,185 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,411 $ 21,881 $ 21,137 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 170,644 1,298 7,220 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 43,548 - 10,956 Secured - Other 410 Unsecured debt 186,538 258,981 1,110 70,859 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,769 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (61,124) 4,139 (10,868) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (511,963) 19,473 (140,923) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (514,500) 19,473 (140,923) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,411 $ 21,881 $ 21,137 ====================================================================================
-------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 -------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 170 $ - $ 212 Trade accounts receivable, net - 2,372 1,076 4,678 Other Receivables - 4,406 - - Due from affiliates 3,467 58,291 676 8,733 Inventories - - 117 1,609 Prepaid expenses - - - 1 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,467 65,239 1,869 15,233 Property, plant and equipment, net - - - 41,446 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,451 - Other assets 2,524 2,208 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 5,991 $ 363,258 $ 3,320 $ 56,679 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,650 799 1,542 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 700 12,857 - - Secured - Other Unsecured debt 1,123 265,052 170 62,343 Other / Intercompany - - - Deferred income taxes - - - - Common stock held by new ESOP - - - - Less: Unearned compensation - - - - Redeemable preferred stock - - - - STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 48 - - Additional paid-in capital - 83,348 4,020 1,451 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (349) 745 (792) (10,175) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 430 (6,453) 2,351 (7,206) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 430 (6,453) 2,351 (7,206) TOTAL LIABILITIES AND EQUITY $ 5,991 $ 363,258 $ 3,320 $ 56,679 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,330 Trade accounts receivable, net - 74,262 Other Receivables - 7,954 Due from affiliates (112,357) (276) Inventories - 39,834 Prepaid expenses - 4,548 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (112,357) 127,652 Property, plant and equipment, net - 167,533 Deferred income taxes - - Investments-Third Party - 6,832 Investments in Subs (381,604) 45,453 Other assets (1) 40,579 -------------------------------- TOTAL ASSETS $(493,962) $ 388,049 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (47,094) 159,364 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,656) 56,405 Secured - Other 410 Unsecured debt (133,138) 713,038 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,180) (546,055) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (79,512) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,181) (861,192) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,181) (863,729) TOTAL LIABILITIES AND EQUITY $(493,962) $ 388,049 ================================
* 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
---------------------------------------------------------------------------------- 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 ---------------------------------------------------------------------------------- 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 JULY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 59,395 $ 59,395 $ -- $ -- $ -- $ -- 31-60 122 122 -- -- -- -- 61-90 859 859 -- -- -- -- 91 + 28,749 28,749 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 89,125 $ 89,125 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JULY 31, 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) $ -- $ 31,375,535 $ 212,365 $ 1,861,900 TOTAL COST OF REVENUES -- 28,776,747 212,365 2,239,380 GROSS PROFIT $ -- $ 2,598,788 $ -- $ (377,480) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 41,359 $ 995,615 $ -- $ 136,196 Insiders Compensation -- -- -- -- Professional Fees -- 1,574,317 -- -- Other (Earnings in Joint Venture) -- 433,509 (50,511) -- TOTAL OPERATING EXPENSE $ 41,359 $ 3,003,441 $ (50,511) $ 136,196 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (41,359) $ (404,653) $ 50,511 $ (513,676) INTEREST EXPENSE (includes amort of debt fees) -- 2,545,388 -- 614,434 DEPRECIATION -- 1,959,389 -- 47,662 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,504,777 $ -- $ 662,096 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (41,359) $ (4,909,430) $ 50,511 $ (1,175,772) INCOME TAXES -- -- 2,385 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (41,359) $ (4,909,430) $ 48,126 $ (1,175,772) ==================================================================================================================================== 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 $ 938,666 $ 578,568 TOTAL COST OF REVENUES -- 75,015 695,045 GROSS PROFIT $ 83,333 $ 863,651 $ (116,477) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 10,652 $ 253,095 $ (96,072) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 10,652 $ 253,095 $ (96,072) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 72,681 $ 610,556 $ (20,405) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,534 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,329 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 12,016 $ (35,773) $ (20,405) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 12,016 $ (35,773) $ (20,405) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,407,217 $ (83,333) $ 38,374,251 TOTAL COST OF REVENUES 2,326,294 (83,333) 34,241,513 GROSS PROFIT $ 1,080,923 $ -- $ 4,132,738 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,505 $ (558,910) 1,407,440 Insiders Compensation -- -- -- Professional Fees -- -- 1,574,317 Other (Earnings in Joint Venture) -- -- 382,998 TOTAL OPERATING EXPENSE $ 625,505 $ (558,910) $ 3,364,755 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 455,418 $ 558,910 767,983 INTEREST EXPENSE (includes amort of debt fees) -- 558,910 3,916,931 DEPRECIATION 325,962 -- 2,841,808 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 325,962 $ 558,910 $ 6,758,739 ================================================================================================================= NET INCOME BEFORE TAXES $ 129,456 $ -- $ (5,990,756) INCOME TAXES -- -- 2,385 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 129,456 $ -- $ (5,993,141) =================================================================================================================
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 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 DATE - ----------------- --------- ------- ------- -------- --------- --------- --------- ---------- 1. CASH-BEGINNING OF MONTH 170,226 170,410 170,592 170,758 170,946 171,123 1,123 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) 184 182 166 188 177 -- -- 14,043 -------- ------- ------- ------- --------- --------- --------- ---------- TOTAL RECEIPTS 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 -- -- -- -- -- 170,000 -- 1,375,001 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- -------- ------- ------- ------- --------- --------- --------- ---------- TOTAL DISBURSEMENTS -- -- -- -- -- 170,000 -- 1,375,001 ======== ======= ======= ======= ========= ========= ========= ========== 22. NET CASH FLOW 184 182 166 188 177 (170,000) -- (1,360,958) 23. CASH - END OF MONTH (MOR-2) 170,410 170,592 170,758 170,946 171,123 1,123 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: Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 DATE ----------------------- ------ ------ ------ -------- ------ ------ ------ --------- 6. OTHER RECEIPTS: Interest Income 184 182 166 188 177 -- -- 14,043 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous -- -- -- -- -- -- -- -- Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- ------ ------ ------ -------- ------ ------ ------ -------- TOTAL OTHER RECEIPTS 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 -- 1,123 1,123 =========== ============ ============ 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 -- -- -- 20. U.S. TRUSTEE FEES -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ----------- ------------ ------------ TOTAL DISBURSEMENTS -- -- -- =========== ============ ============ 22. NET CASH FLOW -- -- -- 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 JULY 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 $ -- $ 1,123 $ 1,123 RECEIPTS -- TRANSFERS BETWEEN ACCOUNTS -- (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS -- ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- 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) Jan-2002 Feb-02 Mar-02 Apr-2002 May-2002 Jun-2002 Jul-2002 DATE - --------------------------------------- -------- -------- -------- -------- -------- -------- -------- ---------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- -------- -------- -------- ------- -------- -------- -------- ---------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======= ======== ======== ======== ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Jan-2002 Feb-02 Mar-02 Apr-2002 May-2002 Jun-2002 Jul-2002 DATE - ------------------------- -------- ------ ------- -------- -------- -------- ----------- ---------- 1. Skadden, Arps, Slate, Meagher & Flom LLP $553,291.25 $ -- $ -- $ -- $ -- $170,000 -- $1,141,786 2. Arthur Andersen -- -- -- -- -- -- -- 233,215 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- ----------- ------ ------ ------- ------ -------- ----------- ---------- TOTAL PROFESSIONALS (MOR-1) $ 553,291 $ -- $ -- $ -- $ -- $170,000 $ -- $1,375,001 =========== ====== ====== ======= ====== ======== =========== ==========
(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 h99399exv99w2.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: JULY YEAR: 2002
1/31/02 2/28/02 3/31/02 4/30/02 MONTH Revised Revised Revised Revised 5/31/02 6/30/02 7/31/02 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $ 20,053,870 $ 20,096,849 $ 21,923,335 $ 42,567,625 $ 45,186,158 $ 48,626,030 $ 31,375,535 INCOME BEFORE INT. DEPREC./TAX $ (2,798,067) $ (2,749,269) $ (148,300) $ 5,024,220 $ 4,957,088 $ 7,401,423 $ (404,653) NET INCOME (LOSS) (MOR-6) $ (7,180,158) $ (6,872,689) $ (4,363,757) $ 495,693 $ 813,702 $ 2,748,385 $ (4,909,430) PAYMENTS TO INSIDERS (MOR-9) $ 142,597 $ 116,429 $ 150,683 $ 494,281 $ 78,911 $ 131,411 $ 78,911 PAYMENTS TO PROFESSIONALS (MOR-9) $ 1,238,773 $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 1,014,508 $ 700,599 $ 1,019,131 TOTAL DISBURSEMENTS (MOR-7)(1) $ 51,372,937 $ 45,245,622 $ 56,865,534 $ 57,893,073 $ 69,069,844 $ 90,769,682 $ 89,651,958 (1) Excludes intercompany transfers as follows: $ 13,719,923 $ 18,261,420 $ 23,396,865 $ 20,186,176 $ 16,157,239 $ 17,490,363 $ 15,729,203
***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 8/19/02 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 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 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 7/1/03 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 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 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 7/1/03 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 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 14 8/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Munich Re:, et. al. Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection mil., $10 mil extra expense. available; many other factors. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/03 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 8/21/03 Various Officers Liability 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/03 Various Liability Co. 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/04 Various Depositor's Forgery Agreement. Ded. $25,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values Ded. $5,000 per loss. of NY $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/03 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 8/21/03 Various Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss Chubb 1 year 2/20/03 Loss Potential Liability (Petrochem & $8,000,000 aggregate Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs ANNUAL TOTAL: *
* 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 JULY 31, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 1 $ 808 $ - $ 139 Trade accounts receivable, net - 63,159 65 2,912 Other Receivables - 500 - 3,048 Due from affiliates 1,375 25,754 13,785 - Inventories - 30,182 - 7,926 Prepaid expenses 33 4,422 - 92 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,825 13,850 14,117 Property, plant and equipment, net - 117,553 2,699 5,835 Deferred income taxes - - - - Investments-Third Party - 1,500 5,332 - Investments in Subs 35,060 94,735 - - Other assets 865 33,798 - 1,185 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,411 $ 21,881 $ 21,137 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 170,644 1,298 7,220 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 43,548 - 10,956 Secured - Other 410 Unsecured debt 186,538 258,981 1,110 70,859 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,769 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (61,124) 4,139 (10,868) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (511,963) 19,473 (140,923) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (514,500) 19,473 (140,923) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,411 $ 21,881 $ 21,137 ====================================================================================
-------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 -------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 170 $ - $ 212 Trade accounts receivable, net - 2,372 1,076 4,678 Other Receivables - 4,406 - - Due from affiliates 3,467 58,291 676 8,733 Inventories - - 117 1,609 Prepaid expenses - - - 1 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,467 65,239 1,869 15,233 Property, plant and equipment, net - - - 41,446 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,451 - Other assets 2,524 2,208 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 5,991 $ 363,258 $ 3,320 $ 56,679 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,650 799 1,542 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 700 12,857 - - Secured - Other Unsecured debt 1,123 265,052 170 62,343 Other / Intercompany - - - Deferred income taxes - - - - Common stock held by new ESOP - - - - Less: Unearned compensation - - - - Redeemable preferred stock - - - - STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 48 - - Additional paid-in capital - 83,348 4,020 1,451 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (349) 745 (792) (10,175) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 430 (6,453) 2,351 (7,206) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 430 (6,453) 2,351 (7,206) TOTAL LIABILITIES AND EQUITY $ 5,991 $ 363,258 $ 3,320 $ 56,679 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,330 Trade accounts receivable, net - 74,262 Other Receivables - 7,954 Due from affiliates (112,357) (276) Inventories - 39,834 Prepaid expenses - 4,548 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (112,357) 127,652 Property, plant and equipment, net - 167,533 Deferred income taxes - - Investments-Third Party - 6,832 Investments in Subs (381,604) 45,453 Other assets (1) 40,579 -------------------------------- TOTAL ASSETS $(493,962) $ 388,049 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (47,094) 159,364 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,656) 56,405 Secured - Other 410 Unsecured debt (133,138) 713,038 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,180) (546,055) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (79,512) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,181) (861,192) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,181) (863,729) TOTAL LIABILITIES AND EQUITY $(493,962) $ 388,049 ================================
* 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
---------------------------------------------------------------------------------- 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 ---------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 43,566 $ 43,581 $ 53,511 $ 61,483 $ 68,952 $ 70,812 $ 65,012 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- -- TAX PAYABLE: -- -- -- -- -- Federal Payroll Taxes -- 8 8 98 3 -- State Payroll & Sales 231 364 437 405 409 415 419 Ad Valorem Taxes -- -- -- -- -- -- Other Taxes 3,901 4,527 5,162 5,795 4,408 3,730 4,290 TOTAL TAXES PAYABLE $ 4,132 $ 4,891 $ 5,607 $ 6,208 $ 4,915 $ 4,148 $ 4,709 SECURED DEBT POST-PETITION 51,346 51,127 56,066 78,668 74,598 76,479 58,656 ACCRUED INTEREST PAYABLE 370 553 670 752 518 624 509 *ACCRUED PROFESSIONAL FEES: 5,236 5,587 5,989 6,106 6,427 7,096 7,490 OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 37,458 31,736 31,003 30,498 32,171 32,233 34,268 2. Lease Operating Expenses/Capital -- -- -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 142,108 $137,475 $ 152,846 $ 183,715 $ 187,581 $ 191,392 $170,644 ================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JULY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 59,395 $ 59,395 $ -- $ -- $ -- $ -- 31-60 122 122 -- -- -- -- 61-90 859 859 -- -- -- -- 91 + 28,749 28,749 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 89,125 $ 89,125 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JULY 31, 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) $ -- $ 31,375,535 $ 212,365 $ 1,861,900 TOTAL COST OF REVENUES -- 28,776,747 212,365 2,239,380 GROSS PROFIT $ -- $ 2,598,788 $ -- $ (377,480) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 41,359 $ 995,615 $ -- $ 136,196 Insiders Compensation -- -- -- -- Professional Fees -- 1,574,317 -- -- Other (Earnings in Joint Venture) -- 433,509 (50,511) -- TOTAL OPERATING EXPENSE $ 41,359 $ 3,003,441 $ (50,511) $ 136,196 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (41,359) $ (404,653) $ 50,511 $ (513,676) INTEREST EXPENSE (includes amort of debt fees) -- 2,545,388 -- 614,434 DEPRECIATION -- 1,959,389 -- 47,662 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,504,777 $ -- $ 662,096 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (41,359) $ (4,909,430) $ 50,511 $ (1,175,772) INCOME TAXES -- -- 2,385 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (41,359) $ (4,909,430) $ 48,126 $ (1,175,772) ==================================================================================================================================== 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 $ 938,666 $ 578,568 TOTAL COST OF REVENUES -- 75,015 695,045 GROSS PROFIT $ 83,333 $ 863,651 $ (116,477) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 10,652 $ 253,095 $ (96,072) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 10,652 $ 253,095 $ (96,072) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 72,681 $ 610,556 $ (20,405) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,534 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,329 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 12,016 $ (35,773) $ (20,405) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 12,016 $ (35,773) $ (20,405) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,407,217 $ (83,333) $ 38,374,251 TOTAL COST OF REVENUES 2,326,294 (83,333) 34,241,513 GROSS PROFIT $ 1,080,923 $ -- $ 4,132,738 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,505 $ (558,910) 1,407,440 Insiders Compensation -- -- -- Professional Fees -- -- 1,574,317 Other (Earnings in Joint Venture) -- -- 382,998 TOTAL OPERATING EXPENSE $ 625,505 $ (558,910) $ 3,364,755 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 455,418 $ 558,910 767,983 INTEREST EXPENSE (includes amort of debt fees) -- 558,910 3,916,931 DEPRECIATION 325,962 -- 2,841,808 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 325,962 $ 558,910 $ 6,758,739 ================================================================================================================= NET INCOME BEFORE TAXES $ 129,456 $ -- $ (5,990,756) INCOME TAXES -- -- 2,385 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 129,456 $ -- $ (5,993,141) =================================================================================================================
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 Jan-02 Feb-02 Mar-02 ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH (256,194) 498,098 (1,530,893) ============ ============ ============ RECEIPTS: 2. CASH SALES -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 24,602,303 20,717,983 25,478,506 4. LOANS & ADVANCES - CIT REVOLVER 31,600,000 26,900,000 36,300,000 5. SALE OF ASSETS -- -- -- 6. OTHER (attach list) 9,644,850 13,860,068 19,408,945 ------------ ------------ ------------ TOTAL RECEIPTS 65,847,152 61,478,051 81,187,451 ------------ ------------ ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A ============ ============ ============ DISBURSEMENTS: 7. NET PAYROLL 1,297,213 1,930,462 2,601,421 8. PAYROLL TAXES PAID 974,973 972,750 $1,053,588 9. SALES, USE & OTHER TAXES PAID 57,123 -- 1,404,405 10.SECURED/RENTAL/LEASES 161,222 154,571 99,905 11.UTILITIES 2,765,343 2,158,233 1,150,288 12.INSURANCE 728,204 589,057 410,554 13.INVENTORY PURCHASES 11,876,414 2,984,285 10,861,846 14.VEHICLE EXPENSES -- -- -- 15.TRAVEL & ENTERTAINMENT 60,079 63,635 36,818 16.REPAIRS, MAINTENANCE & SUPPLIES 1,487,951 7,400,962 4,837,494 17.ADMINISTRATIVE & SELLING 2,804,552 2,442,379 3,841,855 18.OTHER (attach list) 41,641,012 43,639,825 52,706,777 TOTAL DISBURSEMENTS FROM OPERATIONS 63,854,086 62,336,159 79,004,950 19.PROFESSIONAL FEES 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 65,092,860 63,507,042 80,262,399 ============ ============ ============ 22.NET CASH FLOW 754,292 (2,028,991) 925,052 23.CASH - END OF MONTH (MOR-2) 498,098 (1,530,893) (605,842) per MOR-7 498,097.76 (1,530,893.34) (605,841.51) per 211 trial balance 1,983,218.51 986,980.26 636,425.59 -------------- -------------- -------------- difference 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 g/l acct 10131 - account was closed before filing, bal s/b zero 4,029.99 4,029.99 4,029.99 g/l acct 10199 - cash overdraft reclass of outstanding checks 1,480,296.06 2,513,048.91 1,237,442.41 -------------- -------------- -------------- reconciled difference 1,485,120.75 2,517,873.60 1,242,267.10 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 DATE ------------ ------------ ------------ ------------ ----------- 1. CASH-BEGINNING OF MONTH (605,842) 1,432,341 (223,012) 2,127,996 9,346,546 ============ ============ ============ ============ ============ RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 17,926,575 34,807,911 46,518,489 50,696,794 349,155,581 4. LOANS & ADVANCES - CIT REVOLVER 46,100,000 37,400,000 51,000,000 40,400,000 428,200,000 5. SALE OF ASSETS -- -- -- -- -- 6. OTHER (attach list) 16,090,857 11,363,818 13,092,564 11,507,508 158,039,982 ------------ ------------ ------------ ------------- ------------ TOTAL RECEIPTS 80,117,432 83,571,729 110,611,053 102,604,302 935,395,563 ------------ ------------ ------------ ------------- ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A ============ ============ ============ ============= ============ DISBURSEMENTS: 7. NET PAYROLL 1,983,856 1,609,373 2,733,978 1,746,717 25,033,973 8. PAYROLL TAXES PAID 932,205 936,861 1,092,418 852,876 11,253,992 9. SALES, USE & OTHER TAXES PAID 1,650,149 1,456,271 1,303,015 117,874 7,654,279 10.SECURED/RENTAL/LEASES 30,705 101,829 147,956 167,081 1,870,506 11.UTILITIES 6,922,372 3,817,800 3,361,146 4,886,600 43,269,000 12.INSURANCE 50,625 15,583 7,256 1,010,982 6,446,263 13.INVENTORY PURCHASES 17,691,587 16,201,310 29,280,908 20,102,494 165,534,349 14.VEHICLE EXPENSES -- -- -- -- -- 15.TRAVEL & ENTERTAINMENT 65,732 72,716 38,426 19,843 593,708 16.REPAIRS, MAINTENANCE & SUPPLIES 3,235,006 1,896,650 1,681,812 1,825,551 28,511,844 17.ADMINISTRATIVE & SELLING 4,503,340 4,089,807 2,334,678 3,411,237 35,902,265 18.OTHER (attach list) 39,441,420 54,014,374 65,577,853 70,220,775 608,440,801 TOTAL DISBURSEMENTS FROM OPERATIONS 76,506,997 84,212,575 107,559,446 104,362,030 934,510,980 19.PROFESSIONAL FEES 1,525,502 1,014,508 700,599 971,381 10,566,742 20.U.S. TRUSTEE FEES 46,750 -- -- 47,750 188,250 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- 125,000 ------------ ------------ ------------ ------------- ------------ TOTAL DISBURSEMENTS 78,079,249 85,227,083 108,260,045 105,381,161 945,390,972 ============ ============ ============ ============= ============ 22.NET CASH FLOW 2,038,183 (1,655,353) 2,351,008 (2,776,859) (9,995,409) 23.CASH - END OF MONTH (MOR-2) 1,432,341 (223,012) 2,127,996 (648,863) (648,863) per MOR-7 1,432,341.16 (223,012.32) 2,127,995.75 (648,863.18) per 211 trial balance 1,865,999.23 1,368,935.72 2,127,995.75 870,570.06 -------------- -------------- -------------- -------------- difference 433,658.07 1,591,948.04 (0.00) 1,456,433.24 g/l acct 10123 - not a good account, s/b zero 794.70 0.00 0.00 0.00 g/l acct 10131 - account was closed before filing, bal s/b zero 4,029.99 0.00 0.00 0.00 g/l acct 10199 - cash overdraft reclass of outstanding checks 428,833.38 1,591,948.04 0.00 1,456,433.24 -------------- -------------- -------------- -------------- reconciled difference 433,658.07 1,591,948.04 0.00 1,456,433.24
MOR-7 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 DATE ---------- ---------- ------------ ---------- ------------- ------------ ----------- ----------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- 80,302 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous 100,833 223,221 131,124 195,444 128,178 159,394 119,703 3,013,962 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Account Transfers 9,120,571 13,636,846 17,715,686 15,239,518 11,235,640 11,535,051 10,517,018 144,907,144 Intercompany Transfers 423,445 -- 1,562,134 655,895 -- 1,398,119 870,787 10,038,574 ---------- ---------- ------------ ---------- ------------- ------------- ---------- ----------- TOTAL OTHER RECEIPTS 9,644,850 13,860,068 19,408,945 16,090,857 11,363,818 13,092,564 11,507,508 158,039,982 ========== ========== ============ ========== ============= ============= ========== =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures 1,491,633 1,841,654 1,418,900 (581,465) 598,552 134,895 178,576 6,856,721 Revenue & Royalties -- - -- -- -- -- -- -- Interest Payment -- - -- -- -- -- -- 97,161 Employee Benefits 2,711,036 1,602,513 2,285,842 2,492,292 1,544,520 2,998,019 1,890,070 24,130,613 Severance tax -- - -- -- -- -- -- -- Pre-petition checks voided in current period -- - -- -- -- -- -- (30,000) Account Transfers 9,120,571 13,636,846 17,715,686 15,239,518 11,235,640 11,535,051 10,517,018 144,907,144 CIT Revolver Payments 23,718,420 21,934,238 25,605,169 17,344,416 35,714,063 44,954,575 52,422,925 366,907,247 Intercompany Transfers 4,599,352 4,624,574 5,681,179 4,946,658 4,921,599 5,955,312 5,212,185 65,571,915 ---------- ---------- ------------ ---------- ------------- ------------- ---------- ----------- TOTAL OTHER DISBURSEMENTS 41,641,012 43,639,825 52,706,777 39,441,420 54,014,374 65,577,853 70,220,775 608,440,801 ========== ========== ============ ========== ============= ============= ========== ===========
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 1,726,776 242,695 887,158 (730,647) =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 46,005,980 4. LOANS & ADVANCES - CIT REVOLVER 40,400,000 5. SALE OF ASSETS 6. OTHER (attach list) -- 870,787 2,500,000 7,308,003 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 46,005,980 41,270,787 2,500,000 7,308,003 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL 1,746,717 -- 8. PAYROLL TAXES PAID 852,876 9. SALES, USE & OTHER TAXES PAID 58,870 59,004 10. SECURED/RENTAL/LEASES 167,081 11. UTILITIES 4,886,600 12. INSURANCE 669,489 341,493 13. INVENTORY PURCHASES 18,957,314 1,145,180 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 19,843 16. REPAIRS, MAINTENANCE & SUPPLIES 1,825,551 17. ADMINISTRATIVE & SELLING 304,725 3,106,512 18. OTHER (attach list) 47,630,399 16,569,591 -- 519,243 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 47,630,399 41,446,589 2,599,593 7,183,908 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 971,381 20. U.S. TRUSTEE FEES -- -- -- 47,750 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 47,630,399 41,446,589 2,599,593 8,203,039 =============== =============== =============== =============== 22. NET CASH FLOW (1,624,419) (175,802) (99,593) (895,036) 23. CASH - END OF MONTH (MOR-2) 102,356 66,893 787,565 (1,625,683) CASH RECEIPTS AND Chase Chase Bank One Total DISBURSEMENTS 6301810036508 6301810028508 5561833 Debtor ----------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH -- -- 2,014 2,127,996 =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 4,690,814 50,696,794 4. LOANS & ADVANCES - CIT REVOLVER 40,400,000 5. SALE OF ASSETS -- 6. OTHER (attach list) 699,884 9,131 119,703 11,507,508 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 699,884 9,131 4,810,518 102,604,302 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- -- -- 1,746,717 8. PAYROLL TAXES PAID 852,876 9. SALES, USE & OTHER TAXES PAID 117,874 10. SECURED/RENTAL/LEASES 167,081 11. UTILITIES 4,886,600 12. INSURANCE 1,010,982 13. INVENTORY PURCHASES 20,102,494 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT 19,843 16. REPAIRS, MAINTENANCE & SUPPLIES 1,825,551 17. ADMINISTRATIVE & SELLING 3,411,237 18. OTHER (attach list) 699,884 9,131 4,792,526 70,220,775 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 699,884 9,131 4,792,526 104,362,030 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 971,381 20. U.S. TRUSTEE FEES -- -- -- 47,750 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 699,884 9,131 4,792,526 105,381,161 =============== =============== =============== =============== 22. NET CASH FLOW -- -- 17,992 (2,776,859) 23. CASH - END OF MONTH (MOR-2) -- -- 20,005 (648,863)
MOR-7 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
OTHER CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS: 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 2,500,000 7,308,003 Intercompany Transfers 870,787 ---------- ---------- --------- ---------- TOTAL OTHER RECEIPTS -- 870,787 2,500,000 7,308,003 ========== ========== ========= ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures 178,576 Revenue & Royalties Interest Payment Employee Benefits 840,388 340,667 Severance tax Pre-petition checks voided in current period Account Transfers 10,517,018 CIT Revolver Payments 47,630,399 -- Intercompany Transfers 5,212,185 ---------- ---------- --------- ---------- TOTAL OTHER DISBURSEMENTS 47,630,399 16,569,591 -- 519,243 ========== ========== ========= ========== 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 119,703 119,703 Royalty Owners Trust Account -- Emission Credits -- Account Transfers 699,884 9,131 10,517,018 Intercompany Transfers 870,787 --------- --------- ------------ ---------- ---------- TOTAL OTHER RECEIPTS 699,884 9,131 -- 119,703 11,507,508 ========= ========= ============ ========== ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- Workover Expense -- Capital Expenditures 178,576 Revenue & Royalties -- Interest Payment -- Employee Benefits 699,884 9,131 1,890,070 Severance tax -- Pre-petition checks voided in current period -- Account Transfers 10,517,018 CIT Revolver Payments 4,792,526 52,422,925 Intercompany Transfers 5,212,185 --------- --------- ------------ ---------- ---------- TOTAL OTHER DISBURSEMENTS 699,884 9,131 -- 4,792,526 70,220,775 ========= ========= ============ ========== ==========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H-11 CASH ACCOUNT RECONCILIATION MONTH OF JULY 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 $ 102,134 $ 67,115 $ 365,162 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS (1,625,683) OTHER 223 (221) 422,402 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ 102,357 $ 66,894 $ 787,564 $ (1,625,683) =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ 1,726,776 $ 242,696 $ 887,157 $ (730,647) RECEIPTS 46,005,980 40,400,000 TRANSFERS BETWEEN ACCOUNTS (14,858,416) 2,500,000 7,308,003 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (47,630,399) (25,717,386) (2,599,593) (8,203,039) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ 102,357 $ 66,894 $ 787,564 $ (1,625,683) =============== =============== =============== =============== 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 $ -- $ -- $ 20,005 $ 554,416 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS (1,625,683) OTHER 422,404 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ -- $ 20,005 $ (648,863) =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ -- $ 2,014 $ 2,127,996 RECEIPTS 4,810,518 91,216,498 TRANSFERS BETWEEN ACCOUNTS 699,884 9,131 (4,341,398) (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (699,884) (9,131) (4,792,527) (89,651,959) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ -- $ 20,005 $ (648,863) =============== =============== =============== ===============
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) Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 DATE - ---------------------------------------- --------- -------- -------- -------- ---------- --------- --------- --------- 1. Frank Diassi/Chairman of Board/Salary $ -- $ -- $ -- $ -- $ -- $ 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 5. David Elkins/President/Salary 29,167 29,167 30,333 30,333 30,333 30,333 30,333 207,667 6. David Elkins/President/Bonus -- 22,750 136,500 -- 21,875 -- 181,125 7. David Elkins/President/Expenses 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 28,636 27,500 27,917 27,917 27,917 27,917 27,917 189,887 10. Richard Crump/Exec VP Opers/Bonus 1,875 20,938 125,625 -- 20,625 -- 167,188 11. Richard Crump/Exec VP Opers/Expense 4,453 5,404 4,610 6,728 -- 24,057 12. Paul Vanderhoven/VP Finance & CFO/Salary 16,667 16,667 18,333 18,333 18,333 18,333 18,333 121,667 13. Paul Vanderhoven/VP Finance & CFO/Bonus -- 11,000 79,200 -- 10,000 -- 100,200 14. Paul Vanderhoven/VP Finance & CFO/Expense 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) $ 142,597 $116,429 $ 150,683 $494,281 $ 78,911 $ 131,411 $ 78,911 $1,294,639 ========= ======== ========= ======== ========== ========= ========= ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 DATE - --------------------------- ---------- ------------ ----------- ----------- ----------- --------- --------- ----------- 1. Logan & Company, Inc. $ 9,958.00 $ 15,624.27 $ 23,247 $ 3,541 $ 6,645.54 $ 2,631.30 $ 2,850 $ 155,266 2. Andrews & Kurth LLP 139,340 128,643.28 213,187 132,819 256,170.65 246,122.69 199,288 1,080,887 3. US Trustee 53,500 -- -- 46,750 -- -- 47,750 100,250 4. Skadden, Arps, Slate, Meagher & Flom LLP 293,229 466,138.76 634,706 321,403 406,542.75 115,338.02 405,299 2,122,020 5. Akin Gump Strauss -- 35,089.74 120,257 78,728 81,093.82 104,790.97 64,896 673,273 6. Arthur Andersen 115,041 22,556.70 -- 95,421 70,316.52 -- 12,986 470,062 7. Lazard Freres & Co. LLC -- 284,550.16 153,356 295,856 138,638.86 182,916.20 138,779 1,141,014 8. Baker & Botts 111,985 46,197.50 32,861 66,007 30,965.11 10,376.97 13,310 575,335 9. Groom Law Group 10,078 9,773.24 9,738 23,879 10,670.30 4,244.10 4,735 80,056 10. Nexant, Inc. 8,399 37,309.09 16,416 9,595 13,464.59 34,178.90 76,738 168,199 11. Greenhill & Co. 497,243 -- 53,680 498,253 -- -- 52,500 1,049,176 ---------- ------------ ----------- ----------- ----------- ----------- ---------- ---------- TOTAL PROFESSIONALS (MOR-1) $1,238,773 $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 1,014,508 $ 700,599 $1,019,131 $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 h99399exv99w3.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: JULY YEAR: 2002
MONTH 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 (revised) (revised) - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 302,130 $ 262,068 $ 192,124 $ 193,956 $ 185,170 $ 184,425 $ 212,365 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 464,670 $ 43,425 $ (61,716) $ 15,879 $ 69,703 $ 49,066 $ 50,511 NET INCOME (LOSS) (MOR-6) $ 439,688 $ 38,020 $ (54,923) $ 14,278 $ 51,703 $ 46,732 $ 48,126 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $1,583,667 $1,560,614 $1,604,507 $ 914,795 $1,353,466 $1,400,931 $1,315,008 (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 8/19/02 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 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 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 7/1/03 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 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 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 7/1/03 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 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 14 8/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Munich Re:, et. al. Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection mil., $10 mil extra expense. available; many other factors. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/03 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 8/21/03 Various Officers Liability 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/03 Various Liability Co. 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/04 Various Depositor's Forgery Agreement. Ded. $25,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values Ded. $5,000 per loss. of NY $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/03 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 8/21/03 Various Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss Chubb 1 year 2/20/03 Loss Potential Liability (Petrochem & $8,000,000 aggregate Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs ANNUAL TOTAL: *
* 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 JULY 31, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 1 $ 808 $ - $ 139 Trade accounts receivable, net - 63,159 65 2,912 Other Receivables - 500 - 3,048 Due from affiliates 1,375 25,754 13,785 - Inventories - 30,182 - 7,926 Prepaid expenses 33 4,422 - 92 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,825 13,850 14,117 Property, plant and equipment, net - 117,553 2,699 5,835 Deferred income taxes - - - - Investments-Third Party - 1,500 5,332 - Investments in Subs 35,060 94,735 - - Other assets 865 33,798 - 1,185 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,411 $ 21,881 $ 21,137 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 170,644 1,298 7,220 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 43,548 - 10,956 Secured - Other 410 Unsecured debt 186,538 258,981 1,110 70,859 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,769 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (61,124) 4,139 (10,868) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (511,963) 19,473 (140,923) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (514,500) 19,473 (140,923) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,411 $ 21,881 $ 21,137 ====================================================================================
-------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 -------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 170 $ - $ 212 Trade accounts receivable, net - 2,372 1,076 4,678 Other Receivables - 4,406 - - Due from affiliates 3,467 58,291 676 8,733 Inventories - - 117 1,609 Prepaid expenses - - - 1 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,467 65,239 1,869 15,233 Property, plant and equipment, net - - - 41,446 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,451 - Other assets 2,524 2,208 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 5,991 $ 363,258 $ 3,320 $ 56,679 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,650 799 1,542 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 700 12,857 - - Secured - Other Unsecured debt 1,123 265,052 170 62,343 Other / Intercompany - - - Deferred income taxes - - - - Common stock held by new ESOP - - - - Less: Unearned compensation - - - - Redeemable preferred stock - - - - STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 48 - - Additional paid-in capital - 83,348 4,020 1,451 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (349) 745 (792) (10,175) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 430 (6,453) 2,351 (7,206) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 430 (6,453) 2,351 (7,206) TOTAL LIABILITIES AND EQUITY $ 5,991 $ 363,258 $ 3,320 $ 56,679 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,330 Trade accounts receivable, net - 74,262 Other Receivables - 7,954 Due from affiliates (112,357) (276) Inventories - 39,834 Prepaid expenses - 4,548 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (112,357) 127,652 Property, plant and equipment, net - 167,533 Deferred income taxes - - Investments-Third Party - 6,832 Investments in Subs (381,604) 45,453 Other assets (1) 40,579 -------------------------------- TOTAL ASSETS $(493,962) $ 388,049 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (47,094) 159,364 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,656) 56,405 Secured - Other 410 Unsecured debt (133,138) 713,038 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,180) (546,055) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (79,512) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,181) (861,192) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,181) (863,729) TOTAL LIABILITIES AND EQUITY $(493,962) $ 388,049 ================================
* 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
-------------------------------------------------------------------------------------- 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 -------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 1,702 $ 754 $ 1,057 $ 1,493 $ 1,433 $ 1,364 $ 1,298 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) $ 1,702 $ 754 $ 1,057 $ 1,493 $ 1,433 $ 1,364 $ 1,298 ==============================================================================================================================
*Payment Requires Court Approval. MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JULY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 59,395 $ 59,395 $ -- $ -- $ -- $ -- 31-60 122 122 -- -- -- -- 61-90 859 859 -- -- -- -- 91 + 28,749 28,749 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 89,125 $ 89,125 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JULY 31, 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) $ -- $ 31,375,535 $ 212,365 $ 1,861,900 TOTAL COST OF REVENUES -- 28,776,747 212,365 2,239,380 GROSS PROFIT $ -- $ 2,598,788 $ -- $ (377,480) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 41,359 $ 995,615 $ -- $ 136,196 Insiders Compensation -- -- -- -- Professional Fees -- 1,574,317 -- -- Other (Earnings in Joint Venture) -- 433,509 (50,511) -- TOTAL OPERATING EXPENSE $ 41,359 $ 3,003,441 $ (50,511) $ 136,196 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (41,359) $ (404,653) $ 50,511 $ (513,676) INTEREST EXPENSE (includes amort of debt fees) -- 2,545,388 -- 614,434 DEPRECIATION -- 1,959,389 -- 47,662 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,504,777 $ -- $ 662,096 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (41,359) $ (4,909,430) $ 50,511 $ (1,175,772) INCOME TAXES -- -- 2,385 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (41,359) $ (4,909,430) $ 48,126 $ (1,175,772) ==================================================================================================================================== 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 $ 938,666 $ 578,568 TOTAL COST OF REVENUES -- 75,015 695,045 GROSS PROFIT $ 83,333 $ 863,651 $ (116,477) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 10,652 $ 253,095 $ (96,072) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 10,652 $ 253,095 $ (96,072) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 72,681 $ 610,556 $ (20,405) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,534 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,329 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 12,016 $ (35,773) $ (20,405) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 12,016 $ (35,773) $ (20,405) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,407,217 $ (83,333) $ 38,374,251 TOTAL COST OF REVENUES 2,326,294 (83,333) 34,241,513 GROSS PROFIT $ 1,080,923 $ -- $ 4,132,738 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,505 $ (558,910) 1,407,440 Insiders Compensation -- -- -- Professional Fees -- -- 1,574,317 Other (Earnings in Joint Venture) -- -- 382,998 TOTAL OPERATING EXPENSE $ 625,505 $ (558,910) $ 3,364,755 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 455,418 $ 558,910 767,983 INTEREST EXPENSE (includes amort of debt fees) -- 558,910 3,916,931 DEPRECIATION 325,962 -- 2,841,808 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 325,962 $ 558,910 $ 6,758,739 ================================================================================================================= NET INCOME BEFORE TAXES $ 129,456 $ -- $ (5,990,756) INCOME TAXES -- -- 2,385 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 129,456 $ -- $ (5,993,141) =================================================================================================================
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 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 DATE - ----------------- --------- ---------- ---------- --------- --------- --------- -------- ---------- 1. CASH-BEGINNING OF MONTH 100 100 100 100 100 100 100 100 ========= ========== ========== ========= ========= ========= ========= ========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 50,033 69,040 67,945 67,591 72,867 87,682 73,641 868,718 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 1,533,633 1,491,574 1,536,562 847,203 1,280,599 1,313,248 1,241,366 18,281,527 --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL RECEIPTS 1,583,667 1,560,614 1,604,507 914,795 1,353,466 1,400,931 1,315,008 19,150,245 --------- --------- --------- --------- --------- --------- --------- ---------- (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 1,533,633 1,491,574 536,562 847,203 1,280,599 1,313,248 1,241,366 16,281,527 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) 50,033 69,040 1,067,945 67,591 72,867 87,682 73,641 2,868,718 --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,583,667 1,560,614 1,604,507 914,795 1,353,466 1,400,931 1,315,008 19,150,245 ========= ========= ========= ========= ========= ========= ========= ========== 19. PROFESSIONAL FEES -- -- -- -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- ---------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- ---------- TOTAL DISBURSEMENTS 1,583,667 1,560,614 1,604,507 914,795 1,353,434 1,400,931 1,315,008 19,150,245 ========= ========= ========= ========= ========= ========= ========= ========== 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: Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-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 1,533,633 1,491,574 536,562 847,203 1,280,599 1,313,248 1,241,366 16,281,527 -- -- -- -- ---------- ---------- ------------- ---------- --------- ---------- --------- ---------- TOTAL OTHER RECEIPTS 1,533,633 1,491,574 1,536,562 847,203 1,280,599 1,313,248 1,241,366 18,281,527 ========== ========== ============= ========== ========= ========== ========= ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures -- -- -- -- -- -- -- -- Revenue & Royalties -- -- -- -- -- -- -- -- Interest Payment -- -- -- -- -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- -- -- -- -- Severance tax -- -- -- -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- -- -- -- -- Revolver payment to CIT 50,033 69,040 1,067,945 67,591 72,867 87,682 73,641 2,868,718 -- -- ---------- ---------- ------------- ---------- --------- ---------- --------- ---------- TOTAL OTHER DISBURSEMENTS 50,033 69,040 1,067,945 67,591 72,867 87,682 73,641 2,868,718 ========== ========== ============= ========== ========= ========== ========= ==========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 FOR THE PERIOD 7/01/02 - 7/31/02
CASH RECEIPTS AND Chase Chase DISBURSEMENTS 00103317203 00101818459 - ----------------- -------------- ----------- ------------ ----------- 1. CASH-BEGINNING OF MONTH -- 100 -- -- ============== =========== ============ =========== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- 73,641 4. LOANS & ADVANCES (attach list) -- -- 5. SALE OF ASSETS -- -- 6. OTHER (attach list) 1,241,366 -- -- -------------- ----------- ------------ ----------- TOTAL RECEIPTS 1,241,366 73,641 -- -- -------------- ----------- ------------ ----------- (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 1,241,366 -- 12. INSURANCE -- -- 13. INVENTORY PURCHASES -- -- 14. VEHICLE EXPENSES -- -- 15. TRAVEL & ENTERTAINMENT -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 17. ADMINISTRATIVE & SELLING -- -- 18. OTHER (attach list) -- 73,641 -------------- ----------- ------------ ----------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,241,366 73,641 -- -- ============== =========== ============ =========== 19. PROFESSIONAL FEES -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -------------- ----------- ------------ ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS 1,241,366 73,641 -- -- ============== =========== ============ =========== 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 73,641 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 1,241,366 ------------ ----------- ------------- TOTAL RECEIPTS -- -- 1,315,008 ------------ ----------- ------------- (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 1,241,366 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING -- 18. OTHER (attach list) 73,641 ------------ ----------- ------------- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- 1,315,008 ============ =========== ============= 19. PROFESSIONAL FEES -- -- -- 20. U.S. TRUSTEE FEES -- -- -- ------------ ----------- ------------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- TOTAL DISBURSEMENTS -- -- 1,315,008 ============ =========== ============= 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 7/01/02 - 7/31/02
OTHER CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS: 00103317203 00101818459 Debtor - -------------- ------------ ------------ ------------ 6. OTHER RECEIPTS: Interest Income -- -- -- 401(k) Plan Refund -- -- -- Cobra Insurance Payment -- -- -- Dividend -- -- -- Royalty Owners Trust Account -- -- Emission Credits -- -- -- Intercompany Transfer 1,241,366 -- 1,241,366 ------------ --------- ------------ TOTAL OTHER RECEIPTS 1,241,366 -- 1,241,366 ============ ========= ============ 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 -- 73,641 73,641 ------------ --------- ------------ TOTAL OTHER DISBURSEMENTS -- 73,641 73,641 ============ ========= ============
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 CASH ACCOUNT RECONCILIATION MONTH OF JULY 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 73,641 73,641 TRANSFERS BETWEEN ACCOUNTS 1,241,366 1,241,366 (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (1,241,366) (73,641) (1,315,007) ---------------- --------------- ----------- 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) Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 DATE - ----------------------------------- -------- -------- -------- -------- -------- -------- -------- --------- 1 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2 -- -- -- -- -- -- -- -- 3 -- -- -- -- -- -- -- -- 4 -- -- -- -- -- -- -- -- 5 -- -- -- -- -- -- -- -- 6 -- -- -- -- -- -- -- -- 7 -- -- -- -- -- -- -- -- 8 -- -- -- -- -- -- -- -- 9 -- -- -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- --------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ======== ======== =========
PROFESSIONALS FILING TO NAME/ORDER DATE Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-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 h99399exv99w4.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: JULY YEAR: 2002
MONTH 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 Revised Revised Revised Revised - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 1,578,891 $ 1,141,971 $ 1,554,279 $1,707,430 $1,769,204 $ 1,693,508 $ 1,861,900 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (339,192) $ (604,191) $ (421,580) $ (127,852) $ (180,394) $ (511,621) $ (513,676) NET INCOME (LOSS) (MOR-6) $(1,001,244) $(1,266,289) $(1,083,585) $ (789,902) $ (842,445) $(1,173,671) $(1,175,772) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ 2,724,120 $ 2,573,236 $ 2,738,115 $3,182,878 $2,867,783 $ 2,703,564 $ 3,117,479 (1) Excludes intercompany transfers as follows: $ 393,386 $ 200,000 $ 210,000 $ 230,000 $ 205,000 $ 190,000 $ 325,000
***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 8/19/02 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 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 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 7/1/03 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 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 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 7/1/03 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 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 14 8/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Munich Re:, et. al. Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection mil., $10 mil extra expense. available; many other factors. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/03 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 8/21/03 Various Officers Liability 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/03 Various Liability Co. 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/04 Various Depositor's Forgery Agreement. Ded. $25,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values Ded. $5,000 per loss. of NY $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/03 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 8/21/03 Various Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss Chubb 1 year 2/20/03 Loss Potential Liability (Petrochem & $8,000,000 aggregate Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs ANNUAL TOTAL: *
* 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 JULY 31, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 1 $ 808 $ - $ 139 Trade accounts receivable, net - 63,159 65 2,912 Other Receivables - 500 - 3,048 Due from affiliates 1,375 25,754 13,785 - Inventories - 30,182 - 7,926 Prepaid expenses 33 4,422 - 92 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,825 13,850 14,117 Property, plant and equipment, net - 117,553 2,699 5,835 Deferred income taxes - - - - Investments-Third Party - 1,500 5,332 - Investments in Subs 35,060 94,735 - - Other assets 865 33,798 - 1,185 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,411 $ 21,881 $ 21,137 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 170,644 1,298 7,220 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 43,548 - 10,956 Secured - Other 410 Unsecured debt 186,538 258,981 1,110 70,859 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,769 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (61,124) 4,139 (10,868) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (511,963) 19,473 (140,923) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (514,500) 19,473 (140,923) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,411 $ 21,881 $ 21,137 ====================================================================================
-------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 -------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 170 $ - $ 212 Trade accounts receivable, net - 2,372 1,076 4,678 Other Receivables - 4,406 - - Due from affiliates 3,467 58,291 676 8,733 Inventories - - 117 1,609 Prepaid expenses - - - 1 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,467 65,239 1,869 15,233 Property, plant and equipment, net - - - 41,446 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,451 - Other assets 2,524 2,208 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 5,991 $ 363,258 $ 3,320 $ 56,679 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,650 799 1,542 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 700 12,857 - - Secured - Other Unsecured debt 1,123 265,052 170 62,343 Other / Intercompany - - - Deferred income taxes - - - - Common stock held by new ESOP - - - - Less: Unearned compensation - - - - Redeemable preferred stock - - - - STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 48 - - Additional paid-in capital - 83,348 4,020 1,451 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (349) 745 (792) (10,175) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 430 (6,453) 2,351 (7,206) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 430 (6,453) 2,351 (7,206) TOTAL LIABILITIES AND EQUITY $ 5,991 $ 363,258 $ 3,320 $ 56,679 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,330 Trade accounts receivable, net - 74,262 Other Receivables - 7,954 Due from affiliates (112,357) (276) Inventories - 39,834 Prepaid expenses - 4,548 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (112,357) 127,652 Property, plant and equipment, net - 167,533 Deferred income taxes - - Investments-Third Party - 6,832 Investments in Subs (381,604) 45,453 Other assets (1) 40,579 -------------------------------- TOTAL ASSETS $(493,962) $ 388,049 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (47,094) 159,364 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,656) 56,405 Secured - Other 410 Unsecured debt (133,138) 713,038 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,180) (546,055) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (79,512) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,181) (861,192) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,181) (863,729) TOTAL LIABILITIES AND EQUITY $(493,962) $ 388,049 ================================
* 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
----------------------------------------------------------------------------------------- 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/01 ----------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 5,479 $ 5,821 $ 6,096 $ 6,168 $ 6,443 $ 6,794 $ 6,905 ROYALTY AND REVENUE PAYABLE -- -- -- NOTES PAYABLE - INSURANCE -- -- -- TAX PAYABLE: -- Federal Payroll Taxes -- -- -- State Payroll & Sales (3) -- (1) (1) (2) (3) (4) Ad Valorem Taxes -- -- -- -- Other Taxes 162 232 220 245 270 295 320 TOTAL TAXES PAYABLE $ 159 $ 232 $ 219 $ 244 $ 268 $ 292 $ 316 SECURED DEBT POST-PETITION -- -- -- -- ACCRUED INTEREST PAYABLE -- -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- -- -- -- 2. Lease Operating Expenses/Capital -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 5,638 $ 6,053 $ 6,315 $ 6,412 $ 6,711 $ 7,086 $ 7,221 ================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JULY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 59,395 $ 59,395 $ -- $ -- $ -- $ -- 31-60 122 122 -- -- -- -- 61-90 859 859 -- -- -- -- 91 + 28,749 28,749 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 89,125 $ 89,125 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JULY 31, 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) $ -- $ 31,375,535 $ 212,365 $ 1,861,900 TOTAL COST OF REVENUES -- 28,776,747 212,365 2,239,380 GROSS PROFIT $ -- $ 2,598,788 $ -- $ (377,480) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 41,359 $ 995,615 $ -- $ 136,196 Insiders Compensation -- -- -- -- Professional Fees -- 1,574,317 -- -- Other (Earnings in Joint Venture) -- 433,509 (50,511) -- TOTAL OPERATING EXPENSE $ 41,359 $ 3,003,441 $ (50,511) $ 136,196 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (41,359) $ (404,653) $ 50,511 $ (513,676) INTEREST EXPENSE (includes amort of debt fees) -- 2,545,388 -- 614,434 DEPRECIATION -- 1,959,389 -- 47,662 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,504,777 $ -- $ 662,096 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (41,359) $ (4,909,430) $ 50,511 $ (1,175,772) INCOME TAXES -- -- 2,385 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (41,359) $ (4,909,430) $ 48,126 $ (1,175,772) ==================================================================================================================================== 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 $ 938,666 $ 578,568 TOTAL COST OF REVENUES -- 75,015 695,045 GROSS PROFIT $ 83,333 $ 863,651 $ (116,477) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 10,652 $ 253,095 $ (96,072) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 10,652 $ 253,095 $ (96,072) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 72,681 $ 610,556 $ (20,405) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,534 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,329 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 12,016 $ (35,773) $ (20,405) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 12,016 $ (35,773) $ (20,405) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,407,217 $ (83,333) $ 38,374,251 TOTAL COST OF REVENUES 2,326,294 (83,333) 34,241,513 GROSS PROFIT $ 1,080,923 $ -- $ 4,132,738 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,505 $ (558,910) 1,407,440 Insiders Compensation -- -- -- Professional Fees -- -- 1,574,317 Other (Earnings in Joint Venture) -- -- 382,998 TOTAL OPERATING EXPENSE $ 625,505 $ (558,910) $ 3,364,755 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 455,418 $ 558,910 767,983 INTEREST EXPENSE (includes amort of debt fees) -- 558,910 3,916,931 DEPRECIATION 325,962 -- 2,841,808 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 325,962 $ 558,910 $ 6,758,739 ================================================================================================================= NET INCOME BEFORE TAXES $ 129,456 $ -- $ (5,990,756) INCOME TAXES -- -- 2,385 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 129,456 $ -- $ (5,993,141) =================================================================================================================
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 Jan-02 Feb-02 Mar-02 - ----------------- ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 412,443 $ 123,772 $ 165,556 ------------ ------------ ------------ RECEIPTS: 2. CASH SALES -- $ -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE $ 1,582,440 1,349,186 1,657,321 4. LOANS & ADVANCES (attach list) -- -- -- 5. SALE OF ASSETS -- -- -- 6. OTHER (attach list) 1,246,396 1,465,834 1,292,880 TOTAL RECEIPTS $ 2,828,836 $ 2,815,019 $ 2,950,201 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 211,662 $ 142,024 $ 157,720 8. PAYROLL TAXES PAID 81,238 61,762 66,433 9. SALES, USE & OTHER TAXES PAID 802 567 4,742 10. SECURED/RENTAL/LEASES -- -- -- 11. UTILITIES 242,028 192,360 254,704 12. INSURANCE $ 1,582,440 -- -- 13. INVENTORY PURCHASES 61,262 151,616 73,403 14. VEHICLE EXPENSES -- -- -- 15. TRAVEL & ENTERTAINMENT 546 6,593 5,975 16. REPAIRS, MAINTENANCE & SUPPLIES 84,536 55,567 39,635 17. ADMINISTRATIVE & SELLING -- -- 2,710 18. OTHER (attach list) 2,435,431 2,162,748 2,345,504 TOTAL DISBURSEMENTS FROM OPERATIONS $ 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 $ 3,117,506 $ 2,773,236 $ 2,948,115 22. NET CASH FLOW $ (288,670) $ 41,783 $ 2,086 23. CASH - END OF MONTH (MOR-2) $ 123,772 $ 165,556 $ 167,642 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 DATE - ----------------- ------------ ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 167,642 $ 151,768 $ 155,565 $ 120,211 $ 714,483 ------------ ------------ ------------ ------------ ------------ RECEIPTS: 2. CASH SALES -- $ -- $ -- $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,655,125 1,652,762 1,514,756 1,840,100 23,794,673 4. LOANS & ADVANCES (attach list) -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- 6. OTHER (attach list) 1,741,879 1,423,818 1,343,454 1,620,968 17,287,710 TOTAL RECEIPTS $ 3,397,004 $ 3,076,580 $ 2,858,210 $ 3,461,068 $ 41,082,383 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 184,218 $ 146,485 $ 144,066 $ 211,714 $ 2,284,252 8. PAYROLL TAXES PAID 71,168 56,463 56,059 62,035 878,340 9. SALES, USE & OTHER TAXES PAID 3,914 1,958 2,976 1,618 22,070 10. SECURED/RENTAL/LEASES -- -- -- -- 4,486 11. UTILITIES 223,466 193,003 153,563 169,922 2,329,113 12. INSURANCE -- -- -- -- 280,148 13. INVENTORY PURCHASES 192,570 224,244 149,137 178,957 1,728,687 14. VEHICLE EXPENSES -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- 6,019 3,207 2,903 61,839 16. REPAIRS, MAINTENANCE & SUPPLIES 48,832 88,852 67,749 54,578 730,926 17. ADMINISTRATIVE & SELLING 2,775 2,775 -- -- 15,521 18. OTHER (attach list) 2,685,999 2,352,984 2,316,805 2,760,752 33,322,683 TOTAL DISBURSEMENTS FROM OPERATIONS $ 3,412,878 $ 3,072,783 $ 2,893,564 $ 3,442,479 $ 41,658,065 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 $ 3,442,479 $ 41,658,065 22. NET CASH FLOW $ (15,874) $ 3,797 $ (35,353) $ 18,589 $ (575,682) 23. CASH - END OF MONTH (MOR-2) $ 151,768 $ 155,565 $ 120,211 $ 138,800 $ 138,801
MOR-7 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: 8/31/2001(1) Sep-01 Oct-01 Nov-01 ----------------------- ------------ ---------- ---------- ---------- 6. OTHER RECEIPTS: Interest Income $ 545 $ -- $ -- 401(k) Plan Refund -- -- -- Cobra Insurance Payment 6,083 3,806 7,928 5,259 Miscellaneous 80,917 42,438 1,276 12,065 Royalty Owners Trust Account -- -- -- Emission Credits -- -- -- Intercompany Transfers 871,000 1,139,000 1,512,000 1,294,000 Account Transfers 270,000 200,000 240,000 TOTAL OTHER RECEIPTS $1,228,545 $1,385,244 $1,761,204 $1,311,323 18. OTHER DISBURSEMENTS: Lease Operating Expense $ -- $ -- $ -- Workover Expense -- -- -- Capital Expenditures 13,000 4,812 -- Revenue & Royalties -- -- -- 10,150 Interest Payment -- -- -- Employee Benefits 55,027 27,405 27,144 13,438 Severance tax -- -- -- Pre-petition checks voided in current period (3,215) (2,000) -- Insiders -- -- -- Restricted Cash Transactions -- -- -- Contract Services 473,664 431,305 468,686 481,869 Licenses / Fees / Permits 1,439 -- 19,878 89 Freight 87,551 101,650 87,536 100,851 Account Transfers 270,000 200,000 240,000 Outstanding checks to Balance to G/L (183,381) (150,611) 72,328 (59,844) CIT Revolver Payments 4,691,274 3,054,530 1,938,423 1,728,878 TOTAL OTHER DISBURSEMENTS $5,405,358 $3,667,091 $2,853,995 $2,275,432
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 Jul-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 4,426 45,024 Miscellaneous 1,880 70,520 8,931 15,814 5,542 271,781 Royalty Owners Trust Account -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- Intercompany Transfers 1,291,000 1,424,000 1,412,000 1,324,000 1,286,000 15,690,400 Account Transfers -- 230,000 -- -- 325,000 1,265,000 TOTAL OTHER RECEIPTS $1,292,880 $ 1,741,879 $1,423,818 $1,342,454 $1,620,968 $17,286,710 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 25,249 349,465 Severance tax -- -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- -- (5,215) Insiders -- -- -- -- -- -- Restricted Cash Transactions -- -- -- -- -- -- Contract Services 502,800 434,528 554,635 429,682 377,737 2,687,610 Licenses / Fees / Permits 1,000 25 14,615 10,257 82 36,051 Freight 74,185 67,647 83,977 79,432 70,833 511,018 Account Transfers 210,000 230,000 205,000 190,000 325,000 1,103,386 Outstanding checks to Balance to G/L (125,520) 195,350 (193,585) 23,441 78,719 (313,366) CIT Revolver Payments 1,642,003 1,734,416 1,662,211 1,558,123 1,883,133 14,473,592 TOTAL OTHER DISBURSEMENTS $2,345,504 $ 2,688,999 $2,352,984 $2,316,805 $2,760,753 $18,870,504
(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 JULY 2002
CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS 00100547117 00103316965 103405768 630181003508 ----------------- ----------- ------------- ----------- ------------- 1. CASH-BEGINNING OF MONTH $ 12,363.40 $ 45.49 $ 2,824.47 $ 0.00 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 $ 0.00 $ 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 465,546.17 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 0.00 1,286,000.00 325,000.00 0.00 TOTAL RECEIPTS $465,546.17 $1,286,000.00 $325,000.00 $ 0.00 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ $211,713.71 $ 8. PAYROLL TAXES PAID 62,035.35 9. SALES, USE & OTHER TAXES PAID 1,617.84 10. SECURED/RENTAL/LEASES 11. UTILITIES 169,922.32 12. INSURANCE 13. INVENTORY PURCHASES 178,957.21 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 2,903.48 16. REPAIRS, MAINTENANCE & SUPPLIES 54,577.63 17. ADMINISTRATIVE & SELLING 18. OTHER (attach list) 477,809.57 877,594.54 25.00 0.00 TOTAL DISBURSEMENTS FROM OPERATIONS $477,809.57 $1,285,573.02 $273,774.06 $ 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 $477,809.57 $1,285,573.02 $273,774.06 $ 0.00 22. NET CASH FLOW $-12,263.40 $ 426.98 $ 51,225.94 $ 0.00 23. CASH - END OF MONTH (MOR-2) $ 100.00 $ 472.47 $ 54,050.41 $ 0.00 CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS 5577659 1171987307 DATE ----------------- ------------- --------------- ------------- 1. CASH-BEGINNING OF MONTH $ 28,351.90 $ 76,626.03 120,211.29 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,374,554.01 1,840,100.18 4. LOANS & ADVANCES (attach list) 0.00 5. SALE OF ASSETS 0.00 6. OTHER (attach list) 4,425.69 5,542.27 1,620,967.96 TOTAL RECEIPTS $1,378,979.70 $ 5,542.27 3,461,068.14 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ 211,713.71 8. PAYROLL TAXES PAID 62,035.35 9. SALES, USE & OTHER TAXES PAID 1,617.84 10. SECURED/RENTAL/LEASES 0.00 11. UTILITIES 169,922.32 12. INSURANCE 0.00 13. INVENTORY PURCHASES 178,957.21 14. VEHICLE EXPENSES 0.00 15. TRAVEL & ENTERTAINMENT 2,903.48 16. REPAIRS, MAINTENANCE & SUPPLIES 54,577.63 17. ADMINISTRATIVE & SELLING 0.00 18. OTHER (attach list) 1,405,323.60 0.00 2,760,752.71 TOTAL DISBURSEMENTS FROM OPERATIONS $1,405,323.60 $ 0.00 3,442,480.25 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 $1,405,323.60 $ 0.00 3,442,480.25 22. NET CASH FLOW $ -26,343.90 $ 5,542.27 18,587.89 23. CASH - END OF MONTH (MOR-2) $ 2,008.00 $ 82,168.30 138,799.18
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 JULY 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 1,286,000.00 Account Transfers 325,000.00 TOTAL OTHER RECEIPTS $ 0.00 $1,286,000.00 $ 325,000.00 $ 0.00 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures Revenue & Royalties Interest Payment Employee Benefits 25,248.62 Severance tax Pre-petition checks voided in current period Insiders Restricted Cash Transactions Contract Services 377,736.66 Licenses / Fees / Permits 57.00 25.00 Freight 70,833.37 Account Transfers 325,000.00 Outstanding checks to Balance to G/L 78,718.89 CIT Revolver Payments 477,809.57 TOTAL OTHER DISBURSEMENTS $477,809.57 $ 877,594.54 $ 25.00 $ 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 4,425.69 4,425.69 Miscellaneous 5,542.27 5,542.27 Royalty Owners Trust Account 0.00 Emission Credits 0.00 Intercompany Transfers 1,286,000.00 Account Transfers 325,000.00 0.00 0.00 TOTAL OTHER RECEIPTS $ 4,425.69 $ 5,542.27 $1,620,967.96 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 25,248.62 Severance tax 0.00 Pre-petition checks voided in current period 0.00 Insiders 0.00 Restricted Cash Transactions 0.00 Contract Services 377,736.66 Licenses / Fees / Permits 82.00 Freight 70,833.37 Account Transfers 325,000.00 Outstanding checks to Balance to G/L 78,718.89 CIT Revolver Payments $1,405,323.60 1,883,133.17 TOTAL OTHER DISBURSEMENTS $1,405,323.60 $ 0.00 $2,760,752.71
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H-11 CASH ACCOUNT RECONCILIATION MONTH OF JULY 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 $ 472 $ 2,008 $ 82,168 $ 54,050 $ 100 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 472 $ 2,008 $ 82,168 $ 54,050 $ 100 $ -- ================================================================================================================================= BEGINNING CASH - PER BOOKS $ 45 $ 28,352 $ 76,626 $ 2,824 $ 12,363 $ -- RECEIPTS 1,378,980 5,542 465,546 TRANSFERS BETWEEN ACCOUNTS 961,000 -- 325,000 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (960,573) (1,405,324) (273,774) (477,810) ENDING CASH - PER BOOKS $ 472 $ 2,008 $ 82,168 $ 54,050 $ 100 $ -- ================================================================================================================================= BANK NAME ACCOUNT NUMBER ACCOUNT TYPE TOTAL - -------------- ----------- BANK BALANCE $ 138,799 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 138,799 =========================================== BEGINNING CASH - PER BOOKS $ 120,211 RECEIPTS 1,850,068 TRANSFERS BETWEEN ACCOUNTS 1,286,000 (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (3,117,480) ENDING CASH - PER BOOKS $ 138,799 ===========================================
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) Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 DATE - ------------------------------------- -------- -------- -------- --------- -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-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 h99399exv99w5.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: JULY YEAR: 2002
MONTH 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 - -------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 $833,333 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 77,363 $ 81,888 $ 79,933 $ 77,397 $ 67,212 $ 83,333 $ 72,681 NET INCOME (LOSS) (MOR-6) $ 16,698 $ 21,223 $ 19,268 $ 16,732 $ 6,547 $ 22,668 $ 12,016 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 8/19/02 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 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 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 7/1/03 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 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 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 7/1/03 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 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 12 8/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Munich Re:, et. al. Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection mil., $10 mil extra expense. available; many other factors. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/03 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 8/21/03 Various Officers Liability 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/03 Various Liability Co. 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/04 Various Depositor's Forgery Agreement. Ded. $25,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values Ded. $5,000 per loss. of NY $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/03 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 8/21/03 Various Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss Chubb 1 year 2/20/03 Loss Potential Liability (Petrochem & $8,000,000 aggregate Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs ANNUAL TOTAL: *
* 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 JULY 31, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 1 $ 808 $ - $ 139 Trade accounts receivable, net - 63,159 65 2,912 Other Receivables - 500 - 3,048 Due from affiliates 1,375 25,754 13,785 - Inventories - 30,182 - 7,926 Prepaid expenses 33 4,422 - 92 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,825 13,850 14,117 Property, plant and equipment, net - 117,553 2,699 5,835 Deferred income taxes - - - - Investments-Third Party - 1,500 5,332 - Investments in Subs 35,060 94,735 - - Other assets 865 33,798 - 1,185 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,411 $ 21,881 $ 21,137 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 170,644 1,298 7,220 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 43,548 - 10,956 Secured - Other 410 Unsecured debt 186,538 258,981 1,110 70,859 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,769 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (61,124) 4,139 (10,868) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (511,963) 19,473 (140,923) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (514,500) 19,473 (140,923) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,411 $ 21,881 $ 21,137 ====================================================================================
-------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 -------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 170 $ - $ 212 Trade accounts receivable, net - 2,372 1,076 4,678 Other Receivables - 4,406 - - Due from affiliates 3,467 58,291 676 8,733 Inventories - - 117 1,609 Prepaid expenses - - - 1 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,467 65,239 1,869 15,233 Property, plant and equipment, net - - - 41,446 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,451 - Other assets 2,524 2,208 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 5,991 $ 363,258 $ 3,320 $ 56,679 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,650 799 1,542 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 700 12,857 - - Secured - Other Unsecured debt 1,123 265,052 170 62,343 Other / Intercompany - - - Deferred income taxes - - - - Common stock held by new ESOP - - - - Less: Unearned compensation - - - - Redeemable preferred stock - - - - STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 48 - - Additional paid-in capital - 83,348 4,020 1,451 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (349) 745 (792) (10,175) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 430 (6,453) 2,351 (7,206) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 430 (6,453) 2,351 (7,206) TOTAL LIABILITIES AND EQUITY $ 5,991 $ 363,258 $ 3,320 $ 56,679 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,330 Trade accounts receivable, net - 74,262 Other Receivables - 7,954 Due from affiliates (112,357) (276) Inventories - 39,834 Prepaid expenses - 4,548 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (112,357) 127,652 Property, plant and equipment, net - 167,533 Deferred income taxes - - Investments-Third Party - 6,832 Investments in Subs (381,604) 45,453 Other assets (1) 40,579 -------------------------------- TOTAL ASSETS $(493,962) $ 388,049 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (47,094) 159,364 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,656) 56,405 Secured - Other 410 Unsecured debt (133,138) 713,038 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,180) (546,055) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (79,512) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,181) (861,192) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,181) (863,729) TOTAL LIABILITIES AND EQUITY $(493,962) $ 388,049 ================================
* 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
-------------------------------------------------------------------------------- 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 (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 JULY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 59,395 $ 59,395 $ -- $ -- $ -- $ -- 31-60 122 122 -- -- -- -- 61-90 859 859 -- -- -- -- 91 + 28,749 28,749 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 89,125 $ 89,125 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JULY 31, 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) $ -- $ 31,375,535 $ 212,365 $ 1,861,900 TOTAL COST OF REVENUES -- 28,776,747 212,365 2,239,380 GROSS PROFIT $ -- $ 2,598,788 $ -- $ (377,480) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 41,359 $ 995,615 $ -- $ 136,196 Insiders Compensation -- -- -- -- Professional Fees -- 1,574,317 -- -- Other (Earnings in Joint Venture) -- 433,509 (50,511) -- TOTAL OPERATING EXPENSE $ 41,359 $ 3,003,441 $ (50,511) $ 136,196 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (41,359) $ (404,653) $ 50,511 $ (513,676) INTEREST EXPENSE (includes amort of debt fees) -- 2,545,388 -- 614,434 DEPRECIATION -- 1,959,389 -- 47,662 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,504,777 $ -- $ 662,096 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (41,359) $ (4,909,430) $ 50,511 $ (1,175,772) INCOME TAXES -- -- 2,385 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (41,359) $ (4,909,430) $ 48,126 $ (1,175,772) ==================================================================================================================================== 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 $ 938,666 $ 578,568 TOTAL COST OF REVENUES -- 75,015 695,045 GROSS PROFIT $ 83,333 $ 863,651 $ (116,477) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 10,652 $ 253,095 $ (96,072) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 10,652 $ 253,095 $ (96,072) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 72,681 $ 610,556 $ (20,405) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,534 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,329 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 12,016 $ (35,773) $ (20,405) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 12,016 $ (35,773) $ (20,405) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,407,217 $ (83,333) $ 38,374,251 TOTAL COST OF REVENUES 2,326,294 (83,333) 34,241,513 GROSS PROFIT $ 1,080,923 $ -- $ 4,132,738 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,505 $ (558,910) 1,407,440 Insiders Compensation -- -- -- Professional Fees -- -- 1,574,317 Other (Earnings in Joint Venture) -- -- 382,998 TOTAL OPERATING EXPENSE $ 625,505 $ (558,910) $ 3,364,755 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 455,418 $ 558,910 767,983 INTEREST EXPENSE (includes amort of debt fees) -- 558,910 3,916,931 DEPRECIATION 325,962 -- 2,841,808 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 325,962 $ 558,910 $ 6,758,739 ================================================================================================================= NET INCOME BEFORE TAXES $ 129,456 $ -- $ (5,990,756) INCOME TAXES -- -- 2,385 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 129,456 $ -- $ (5,993,141) =================================================================================================================
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 Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-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: Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-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 JULY 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) Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-02 Jul-2002 DATE ------------------------------------- -------- -------- -------- ------------ -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-02 Jul-2002 DATE --------------- ---------- ---------- -------- -------- ---------- ---------- ---------- ----------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.6 8 h99399exv99w6.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: JULY YEAR: 2002
1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 MONTH Revised Revised Revised - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $1,059,266 $1,059,266 $ 1,087,139 $ 1,076,963 $ 1,059,266 $ 617,525 $ 938,666 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 584,521 $ 781,134 $ 786,914 $ 765,999 $ 750,049 $ 326,174 $ 610,556 NET INCOME (LOSS) (MOR-6) $ (61,844) $ 80,692 $ 140,569 $ 101,602 $ 103,679 $ (338,175) $ (35,773) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $2,043,090 $1,041,816 $ 298,056 $ 1,479,491 $ 1,387,906 $ 186,246 $1,019,169 (1) Excludes intercompany transfers as follows: $ 924,751 $ -- $ 981,639 $ 647,602 $ -- $1,102,126 $ 746,935
***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 8/19/02 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 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 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 7/1/03 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 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 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 7/1/03 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 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 14 8/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Munich Re:, et. al. Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection mil., $10 mil extra expense. available; many other factors. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/03 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 8/21/03 Various Officers Liability 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/03 Various Liability Co. 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/04 Various Depositor's Forgery Agreement. Ded. $25,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values Ded. $5,000 per loss. of NY $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/03 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 8/21/03 Various Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss Chubb 1 year 2/20/03 Loss Potential Liability (Petrochem & $8,000,000 aggregate Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs ANNUAL TOTAL: *
* 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 JULY 31, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 1 $ 808 $ - $ 139 Trade accounts receivable, net - 63,159 65 2,912 Other Receivables - 500 - 3,048 Due from affiliates 1,375 25,754 13,785 - Inventories - 30,182 - 7,926 Prepaid expenses 33 4,422 - 92 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,825 13,850 14,117 Property, plant and equipment, net - 117,553 2,699 5,835 Deferred income taxes - - - - Investments-Third Party - 1,500 5,332 - Investments in Subs 35,060 94,735 - - Other assets 865 33,798 - 1,185 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,411 $ 21,881 $ 21,137 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 170,644 1,298 7,220 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 43,548 - 10,956 Secured - Other 410 Unsecured debt 186,538 258,981 1,110 70,859 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,769 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (61,124) 4,139 (10,868) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (511,963) 19,473 (140,923) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (514,500) 19,473 (140,923) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,411 $ 21,881 $ 21,137 ====================================================================================
-------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 -------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 170 $ - $ 212 Trade accounts receivable, net - 2,372 1,076 4,678 Other Receivables - 4,406 - - Due from affiliates 3,467 58,291 676 8,733 Inventories - - 117 1,609 Prepaid expenses - - - 1 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,467 65,239 1,869 15,233 Property, plant and equipment, net - - - 41,446 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,451 - Other assets 2,524 2,208 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 5,991 $ 363,258 $ 3,320 $ 56,679 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,650 799 1,542 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 700 12,857 - - Secured - Other Unsecured debt 1,123 265,052 170 62,343 Other / Intercompany - - - Deferred income taxes - - - - Common stock held by new ESOP - - - - Less: Unearned compensation - - - - Redeemable preferred stock - - - - STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 48 - - Additional paid-in capital - 83,348 4,020 1,451 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (349) 745 (792) (10,175) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 430 (6,453) 2,351 (7,206) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 430 (6,453) 2,351 (7,206) TOTAL LIABILITIES AND EQUITY $ 5,991 $ 363,258 $ 3,320 $ 56,679 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,330 Trade accounts receivable, net - 74,262 Other Receivables - 7,954 Due from affiliates (112,357) (276) Inventories - 39,834 Prepaid expenses - 4,548 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (112,357) 127,652 Property, plant and equipment, net - 167,533 Deferred income taxes - - Investments-Third Party - 6,832 Investments in Subs (381,604) 45,453 Other assets (1) 40,579 -------------------------------- TOTAL ASSETS $(493,962) $ 388,049 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (47,094) 159,364 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,656) 56,405 Secured - Other 410 Unsecured debt (133,138) 713,038 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,180) (546,055) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (79,512) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,181) (861,192) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,181) (863,729) TOTAL LIABILITIES AND EQUITY $(493,962) $ 388,049 ================================
* 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
------------------------------------------------------------------------------------------- Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 ------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 440 $ 656 $ 326 $ 305 $ 596 $ 218 $ 272 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 35 13 $ 12 24 18 8 14 TOTAL TAXES PAYABLE $ 35 13 12 $ 24 $ 18 $ 8 $ 14 SECURED DEBT POST-PETITION -- -- -- ACCRUED INTEREST PAYABLE -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 130 150 170 50 70 90 110 2. Lease Operating Expenses/Capital -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 20,014 $ 20,228 $ 19,917 $ 19,787 $ 20,093 $ 19,725 $ 19,804 ====================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JULY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 59,395 $ 59,395 $ -- $ -- $ -- $ -- 31-60 122 122 -- -- -- -- 61-90 859 859 -- -- -- -- 91 + 28,749 28,749 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 89,125 $ 89,125 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JULY 31, 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) $ -- $ 31,375,535 $ 212,365 $ 1,861,900 TOTAL COST OF REVENUES -- 28,776,747 212,365 2,239,380 GROSS PROFIT $ -- $ 2,598,788 $ -- $ (377,480) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 41,359 $ 995,615 $ -- $ 136,196 Insiders Compensation -- -- -- -- Professional Fees -- 1,574,317 -- -- Other (Earnings in Joint Venture) -- 433,509 (50,511) -- TOTAL OPERATING EXPENSE $ 41,359 $ 3,003,441 $ (50,511) $ 136,196 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (41,359) $ (404,653) $ 50,511 $ (513,676) INTEREST EXPENSE (includes amort of debt fees) -- 2,545,388 -- 614,434 DEPRECIATION -- 1,959,389 -- 47,662 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,504,777 $ -- $ 662,096 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (41,359) $ (4,909,430) $ 50,511 $ (1,175,772) INCOME TAXES -- -- 2,385 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (41,359) $ (4,909,430) $ 48,126 $ (1,175,772) ==================================================================================================================================== 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 $ 938,666 $ 578,568 TOTAL COST OF REVENUES -- 75,015 695,045 GROSS PROFIT $ 83,333 $ 863,651 $ (116,477) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 10,652 $ 253,095 $ (96,072) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 10,652 $ 253,095 $ (96,072) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 72,681 $ 610,556 $ (20,405) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,534 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,329 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 12,016 $ (35,773) $ (20,405) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 12,016 $ (35,773) $ (20,405) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,407,217 $ (83,333) $ 38,374,251 TOTAL COST OF REVENUES 2,326,294 (83,333) 34,241,513 GROSS PROFIT $ 1,080,923 $ -- $ 4,132,738 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,505 $ (558,910) 1,407,440 Insiders Compensation -- -- -- Professional Fees -- -- 1,574,317 Other (Earnings in Joint Venture) -- -- 382,998 TOTAL OPERATING EXPENSE $ 625,505 $ (558,910) $ 3,364,755 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 455,418 $ 558,910 767,983 INTEREST EXPENSE (includes amort of debt fees) -- 558,910 3,916,931 DEPRECIATION 325,962 -- 2,841,808 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 325,962 $ 558,910 $ 6,758,739 ================================================================================================================= NET INCOME BEFORE TAXES $ 129,456 $ -- $ (5,990,756) INCOME TAXES -- -- 2,385 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 129,456 $ -- $ (5,993,141) =================================================================================================================
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 Jan-02 Feb-02 Mar-02 - ----------------------------------------------- ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 19,490 $ (45,956) $ (13,573) RECEIPTS: 2. CASH SALES $ $ 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) 923,764 105,019 1,063,679 TOTAL RECEIPTS $ 2,902,395 $ 1,074,199 $ 1,306,464 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A DISBURSEMENTS: 7. NET PAYROLL $ 8. PAYROLL TAXES PAID 9. SALES, USE & OTHER TAXES PAID 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 143,435 9,970 137,451 18. OTHER (attach list) 2,816,699 996,552 1,128,786 TOTAL DISBURSEMENTS FROM OPERATIONS $ 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 $ 2,967,841 $ 1,041,816 $ 1,279,695 22. NET CASH FLOW $ (65,446) $ 32,383 $ 26,769 23. CASH - END OF MONTH (MOR-2) $ (45,956) $ (13,573) $ 13,196 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 DATE - ----------------------------------------------- ------------ ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 13,196 $ 164,030 $ 58,277 $ 148,432 $ 271,082 RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ 1,156,999 $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,531,316 1,188,084 139,297 14,323,769 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 746,611 94,069 1,239,230 630,984 28,725,098 TOTAL RECEIPTS $ 2,277,927 $ 1,282,153 $ 1,378,527 $ 1,787,983 $ 43,048,867 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- $ $ -- 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID 12,292 23,843 17,807 8,165 260,782 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 22,860 998,448 18. OTHER (attach list) 1,937,473 1,364,063 1,119,071 1,735,079 41,890,408 TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,127,093 $ 1,387,906 $ 1,288,372 $ 1,766,104 $ 43,149,638 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 $ 1,766,104 $ 43,149,638 22. NET CASH FLOW $ 150,833 $ (105,753) $ 90,155 $ 21,880 $ (100,770) 23. CASH - END OF MONTH (MOR-2) $ 164,030 $ 58,277 $ 148,432 $ 170,312 $ 170,312
MOR-7 CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: Jan-02 Feb-02 Mar-02 Apr-02 - ----------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income 13 19 $ 33 $ 9 401(k) Plan Refund -- Cobra Insurance Payment -- Miscellaneous -- Advance from Parent company - Sterling Chemicals -- 105,000 99,000 Loan Advance from a subsidiary - Sterling NRO -- -- Return of investment from SPCUS -- 88,741 Rec'd in error, to be returned in Sep 01 SPC Ltd -- cash receipts re Inter company AR 923,751 1,063,639 558,861 rec'd in error and to be returned in Nov 01. -- TOTAL OTHER RECEIPTS $ 923,764 $ 105,019 $ 1,063,672 $ 746,611 18. OTHER DISBURSEMENTS: Workover Expense -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals 119,811 949,787 351,178 cash disbursements re Inter company AP 440,050 31,852 296,424 CIT revolver cash sweep 1,891,948 996,552 147,147 1,289,871 Capital contribution to SPCUS 364,890 TOTAL OTHER DISBURSEMENTS $ 2,816,699 $ 996,552 $ 1,128,786 $ 1,937,473 OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: May-02 Jun-02 Jul-02 DATE - -------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 8 57 49 $ 1,686 401(k) Plan Refund -- Cobra Insurance Payment -- Miscellaneous 2,061 48 6,031 Advance from Parent company - Sterling Chemicals 92,000 137,000 10,000 443,000 Loan Advance from a subsidiary - Sterling NRO 19,409,155 Return of investment from SPCUS 1,659,140 Rec'd in error, to be returned in Sep 01 SPC Ltd -- cash receipts re Inter company AR 1,102,125 620,935 6,971,428 rec'd in error and to be returned in Nov 01. 234,658 TOTAL OTHER RECEIPTS $ 94,069 $1,239,230 $ 630,984 $ 28,725,098 18. OTHER DISBURSEMENTS: Workover Expense -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals 604,865 515,042 27,733,189 cash disbursements re Inter company AP 497,261 231,893 2,844,213 CIT revolver cash sweep 1,364,063 16,945 988,144 10,879,763 Capital contribution to SPCUS 433,243 TOTAL OTHER DISBURSEMENTS $1,364,063 $1,119,071 $1,735,079 $ 41,890,408
MOR-7 ATTACHMENT CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF JULY 2002
Bank One Chase Manhattan Chase Manhattan CIBC CASH RECEIPTS AND 5561841 001-00526970 001-03317054 77-01713 DISBURSEMENTS Lock Box General Checking Checking Total ----------------- --------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH 1,000 100 118,390 28,943 148,433 =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 924,168 176,137 56,694 1,156,999 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) -- -- 630,935 49 630,984 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 924,168 176,137 630,935 56,743 1,787,983 --------------- --------------- --------------- --------------- --------------- (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 161 8,004 8,165 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 16,238 6,622 22,860 18. OTHER (attach list) 858,360 129,784 746,935 -- 1,735,079 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 858,360 129,784 763,334 14,626 1,766,104 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 858,360 129,784 763,334 14,626 1,766,104 =============== =============== =============== =============== =============== 22. NET CASH FLOW 65,808 46,354 (132,399) 42,117 21,879 23. CASH - END OF MONTH (MOR-2) 66,808 46,454 (14,009) 71,060 170,312
MOR-7 * Applies to Individual debtor's only. CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF JULY 2002
Chase Chase Bank One Manhatten Manhatten OTHER CASH RECEIPTS AND 5561841 001-00526970 001-03317054 DISBURSEMENTS: Lock Box General Checking - -------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ -- $ -- $ -- 401(k) Plan Refund Advance from Parent company - Sterling Chemicals 10,000 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 620,935 rec'd in error and to be returned in Oct 01. TOTAL OTHER RECEIPTS $ -- $ -- $ 630,935 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 515,042 cash disbursements re Inter company AP 231,893 CIT revolver cash sweep 858,360 129,784 Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 858,360 $ 129,784 $ 746,935 CIBC OTHER CASH RECEIPTS AND 77-01713 DISBURSEMENTS: Checking Total - --------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 49 $ 49 401(k) Plan Refund -- Advance from Parent company - Sterling Chemicals 10,000 Miscellaneous -- Transfer Between Accounts 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 620,935 rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ 49 $ 630,984 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals -- 515,042 cash disbursements re Inter company AP -- 231,893 CIT revolver cash sweep 988,144 Capital contribution to SPCUS -- TOTAL OTHER DISBURSEMENTS $ -- $ 1,735,079
MOR-7 ATTACHMENT CASE NAME: Sterling Canada, Inc. CASE NUMBER: 01-37810-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF JULY 2002
BANK NAME Bank One Chase Manhattan Chase Manhattan CIBC ACCOUNT NUMBER 5561841 001-00526970 001-03317054 77-01713 ACCOUNT TYPE Lock Box General Checking Consolidated Checking TOTAL - ------------ ------------ --------------- --------------- ------------ ---------- ------------ BANK BALANCE $ 66,808 $ 46,454 $ 783 $ 114,045 $ 71,059 $ 185,104 DEPOSIT IN TRANSIT -- -- OUTSTANDING CHECKS (14,792) (14,792) (14,792) ADJUSTED BANK BALANCE $ 66,808 $ 46,454 $ (14,009) $ 99,253 $ 71,059 $ 170,312 BEGINNING CASH - PER BOOKS $ 1,000 $ 100 $ 118,390 $ 119,490 $ 28,943 $ 148,433 RECEIPTS 924,168 176,137 630,935 1,731,241 56,743 1,787,984 TRANSFERS BETWEEN ACCOUNTS -- -- -- -- (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (858,360) (129,784) (763,334) (1,751,478) (14,627) $ (1,766,105) ENDING CASH - PER BOOKS $ 66,808 $ 46,454 $ (14,009) $ 99,253 $ 71,059 $ 170,312
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 Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 FILING TO /COMP TYPE (2) DATE - --------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-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 h99399exv99w7.txt MONTHLY OPERATING RPT.-STERLING PULP CHEM. US, INC 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: JULY YEAR: 2002
MONTH 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 - ----------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $328,152 $239,252 $ 286,617 $ 365,854 $ 332,686 $360,103 $578,568 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $(81,177) $(59,026) $ (49,004) $ (54,804) $ (62,294) $(35,237) $(20,405) NET INCOME (LOSS) (MOR-6) $(81,177) $(59,026) $ (49,004) $ (54,804) $ (62,294) $(35,237) $(20,405) 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 8/19/02 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 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 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 7/1/03 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 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 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 7/1/03 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 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 12 8/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Munich Re:, et. al. Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection mil., $10 mil extra expense. available; many other factors. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/03 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 8/21/03 Various Officers Liability 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/03 Various Liability Co. 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/04 Various Depositor's Forgery Agreement. Ded. $25,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values Ded. $5,000 per loss. of NY $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/03 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 8/21/03 Various Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss Chubb 1 year 2/20/03 Loss Potential Liability (Petrochem & $8,000,000 aggregate Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs ANNUAL TOTAL: *
* 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 JULY 31, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 1 $ 808 $ - $ 139 Trade accounts receivable, net - 63,159 65 2,912 Other Receivables - 500 - 3,048 Due from affiliates 1,375 25,754 13,785 - Inventories - 30,182 - 7,926 Prepaid expenses 33 4,422 - 92 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,825 13,850 14,117 Property, plant and equipment, net - 117,553 2,699 5,835 Deferred income taxes - - - - Investments-Third Party - 1,500 5,332 - Investments in Subs 35,060 94,735 - - Other assets 865 33,798 - 1,185 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,411 $ 21,881 $ 21,137 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 170,644 1,298 7,220 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 43,548 - 10,956 Secured - Other 410 Unsecured debt 186,538 258,981 1,110 70,859 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,769 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (61,124) 4,139 (10,868) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (511,963) 19,473 (140,923) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (514,500) 19,473 (140,923) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,411 $ 21,881 $ 21,137 ====================================================================================
-------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 -------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 170 $ - $ 212 Trade accounts receivable, net - 2,372 1,076 4,678 Other Receivables - 4,406 - - Due from affiliates 3,467 58,291 676 8,733 Inventories - - 117 1,609 Prepaid expenses - - - 1 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,467 65,239 1,869 15,233 Property, plant and equipment, net - - - 41,446 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,451 - Other assets 2,524 2,208 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 5,991 $ 363,258 $ 3,320 $ 56,679 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,650 799 1,542 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 700 12,857 - - Secured - Other Unsecured debt 1,123 265,052 170 62,343 Other / Intercompany - - - Deferred income taxes - - - - Common stock held by new ESOP - - - - Less: Unearned compensation - - - - Redeemable preferred stock - - - - STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 48 - - Additional paid-in capital - 83,348 4,020 1,451 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (349) 745 (792) (10,175) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 430 (6,453) 2,351 (7,206) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 430 (6,453) 2,351 (7,206) TOTAL LIABILITIES AND EQUITY $ 5,991 $ 363,258 $ 3,320 $ 56,679 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,330 Trade accounts receivable, net - 74,262 Other Receivables - 7,954 Due from affiliates (112,357) (276) Inventories - 39,834 Prepaid expenses - 4,548 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (112,357) 127,652 Property, plant and equipment, net - 167,533 Deferred income taxes - - Investments-Third Party - 6,832 Investments in Subs (381,604) 45,453 Other assets (1) 40,579 -------------------------------- TOTAL ASSETS $(493,962) $ 388,049 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (47,094) 159,364 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,656) 56,405 Secured - Other 410 Unsecured debt (133,138) 713,038 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,180) (546,055) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (79,512) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,181) (861,192) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,181) (863,729) TOTAL LIABILITIES AND EQUITY $(493,962) $ 388,049 ================================
* 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
--------------------------------------------------------------------------------------- Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-02 --------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 515 $ 949 $ 367 $ 518 $ 936 $ 416 $ 458 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 133 114 94 19 25 29 341 2. Lease Operating Expenses/Capital TOTAL POST-PETITION LIABILITIES (MOR-3) $ 648 $ 1,063 $ 461 $ 537 $ 962 $ 445 $ 799 ================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JULY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 59,395 $ 59,395 $ -- $ -- $ -- $ -- 31-60 122 122 -- -- -- -- 61-90 859 859 -- -- -- -- 91 + 28,749 28,749 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 89,125 $ 89,125 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JULY 31, 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) $ -- $ 31,375,535 $ 212,365 $ 1,861,900 TOTAL COST OF REVENUES -- 28,776,747 212,365 2,239,380 GROSS PROFIT $ -- $ 2,598,788 $ -- $ (377,480) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 41,359 $ 995,615 $ -- $ 136,196 Insiders Compensation -- -- -- -- Professional Fees -- 1,574,317 -- -- Other (Earnings in Joint Venture) -- 433,509 (50,511) -- TOTAL OPERATING EXPENSE $ 41,359 $ 3,003,441 $ (50,511) $ 136,196 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (41,359) $ (404,653) $ 50,511 $ (513,676) INTEREST EXPENSE (includes amort of debt fees) -- 2,545,388 -- 614,434 DEPRECIATION -- 1,959,389 -- 47,662 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,504,777 $ -- $ 662,096 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (41,359) $ (4,909,430) $ 50,511 $ (1,175,772) INCOME TAXES -- -- 2,385 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (41,359) $ (4,909,430) $ 48,126 $ (1,175,772) ==================================================================================================================================== 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 $ 938,666 $ 578,568 TOTAL COST OF REVENUES -- 75,015 695,045 GROSS PROFIT $ 83,333 $ 863,651 $ (116,477) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 10,652 $ 253,095 $ (96,072) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 10,652 $ 253,095 $ (96,072) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 72,681 $ 610,556 $ (20,405) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,534 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,329 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 12,016 $ (35,773) $ (20,405) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 12,016 $ (35,773) $ (20,405) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,407,217 $ (83,333) $ 38,374,251 TOTAL COST OF REVENUES 2,326,294 (83,333) 34,241,513 GROSS PROFIT $ 1,080,923 $ -- $ 4,132,738 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,505 $ (558,910) 1,407,440 Insiders Compensation -- -- -- Professional Fees -- -- 1,574,317 Other (Earnings in Joint Venture) -- -- 382,998 TOTAL OPERATING EXPENSE $ 625,505 $ (558,910) $ 3,364,755 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 455,418 $ 558,910 767,983 INTEREST EXPENSE (includes amort of debt fees) -- 558,910 3,916,931 DEPRECIATION 325,962 -- 2,841,808 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 325,962 $ 558,910 $ 6,758,739 ================================================================================================================= NET INCOME BEFORE TAXES $ 129,456 $ -- $ (5,990,756) INCOME TAXES -- -- 2,385 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 129,456 $ -- $ (5,993,141) =================================================================================================================
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 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 FILING TO DISBURSEMENTS DATE - ------------------------------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ RECEIPTS: - ------------------------------------------------------------------------------------------------------------------------------------ 2. CASH SALES $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 3. COLLECTION OF ACCOUNTS RECEIVABLE - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 4. LOANS & ADVANCES (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 5. SALE OF ASSETS - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 6. OTHER (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RECEIPTS $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A - ------------------------------------------------------------------------------------------------------------------------------------ DISBURSEMENTS: - ------------------------------------------------------------------------------------------------------------------------------------ 7. NET PAYROLL $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 8. PAYROLL TAXES PAID - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 9. SALES, USE & OTHER TAXES PAID - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 10. SECURED/RENTAL/LEASES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 11. UTILITIES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 12. INSURANCE - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 13. INVENTORY PURCHASES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 14. VEHICLE EXPENSES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 15. TRAVEL & ENTERTAINMENT - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 16. REPAIRS, MAINTENANCE & SUPPLIES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 17. ADMINISTRATIVE & SELLING - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 18. OTHER (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISBURSEMENTS FROM OPERATIONS $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 19. PROFESSIONAL FEES $ - $ - $ - - $ - $ - - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 20. U.S. TRUSTEE FEES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 21. OTHER REORGANIZATION EXPENSES (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISBURSEMENTS $ - $ - $ - - $ - $ - - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 22. NET CASH FLOW $ - $ - $ - - $ - $ - - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 23. CASH - END OF MONTH (MOR-2) $ - $ - $ - - $ - $ - - $ - ====================================================================================================================================
MOR-7 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
================================================================================================================================ OTHER CASH RECEIPTS AND 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 FILING TO DISBURSEMENTS: DATE - -------------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: - -------------------------------------------------------------------------------------------------------------------------------- Interest Income $ - $ - $ - $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- 401(k) Plan Refund - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Cobra Insurance Payment - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Miscellaneous - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Emission Credits - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER RECEIPTS $ - $ - $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- 18. OTHER DISBURSEMENTS: - -------------------------------------------------------------------------------------------------------------------------------- Capital Expenditures $ - $ - - $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- Interest Payment - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Restricted Cash - Bond Funding - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Pre-petition checks voided in current period - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER DISBURSEMENTS $ - $ - $ - $ - $ - $ - $ - $ - ================================================================================================================================
MOR-7 ATTACHMENT CASE NAME: Sterling Pulp Chemicals US, Inc. CASE NUMBER: 01-37811-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF JULY 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.)
=================================================================================================================================== Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE - ----------------------------------------------------------------------------------------------------------------------------------- 1. $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 2. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 3. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 7. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 8. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 9. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INSIDERS (MOR-1) $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================================================
=================================================================================================================================== Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-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 h99399exv99w8.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: JULY YEAR: 2002
1/31/02 2/28/02 MONTH Revised - --------------------------------------------------------------------- REVENUES (MOR-6) $3,335,583 $3,227,039 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 639,912 $ 573,082 NET INCOME (LOSS) (MOR-6) $ 232,478 $ 245,985 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $6,098,766 $4,778,478 (1) Excludes intercompany transfers as follows: $1,160,015 $ -- 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 MONTH Revised Revised - -------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $3,175,608 $3,332,627 $3,292,539 $3,272,103 $3,407,217 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 561,378 692,530 $ 685,631 $ 803,792 $ 455,418 NET INCOME (LOSS) (MOR-6) $ 236,593 365,040 $ 359,532 $ 477,690 $ 129,456 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 $4,965,224 (1) Excludes intercompany transfers as follows: $2,038,617 $ 773,455 $ -- $1,801,682 $ 737,250
***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 8/19/02 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 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 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 7/1/03 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 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 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 7/1/03 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 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 14 8/19/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Munich Re:, et. al. Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 PML, fire protection mil., $10 mil extra expense. available; many other factors. 14 Directors & Officers $15,000,000 each loss and each National Union 1 year 8/21/03 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 8/21/03 Various Officers Liability 16 Directors & Officers $10,000,000 XL Specialty Ins. 1 year 8/21/03 Various Liability Co. 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/04 Various Depositor's Forgery Agreement. Ded. $25,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = $1,500,000) Insurance Co. values Ded. $5,000 per loss. of NY $1,000,000 P&I 19 Pollution Insurance Section A - $250,000 Water Quality 1 year 7/1/03 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 8/21/03 Various Ded. $250,000 per occurrence 23 Environmental Impairment $4,000,000 per loss Chubb 1 year 2/20/03 Loss Potential Liability (Petrochem & $8,000,000 aggregate Fibers) 24 Closure/Post Closure $1,995,222 Combined Underwriters 1 year Continuous Estimated Bonds - Petrochem Indemnity Closure/Post Closure Costs ANNUAL TOTAL: *
* 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 JULY 31, 2002 (In Thousands) (Unaudited)
-------------------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CHEMICALS, STERLING CHEMICALS STERLING FIBERS HOLDINGS INC. INC. ENERGY, INC. INC. ASSETS 01-37805-H4-11 01-37806-H4-11 01-37807-H4-11 01-37808-H4-11 -------------------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ 1 $ 808 $ - $ 139 Trade accounts receivable, net - 63,159 65 2,912 Other Receivables - 500 - 3,048 Due from affiliates 1,375 25,754 13,785 - Inventories - 30,182 - 7,926 Prepaid expenses 33 4,422 - 92 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,825 13,850 14,117 Property, plant and equipment, net - 117,553 2,699 5,835 Deferred income taxes - - - - Investments-Third Party - 1,500 5,332 - Investments in Subs 35,060 94,735 - - Other assets 865 33,798 - 1,185 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,411 $ 21,881 $ 21,137 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 170,644 1,298 7,220 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 43,548 - 10,956 Secured - Other 410 Unsecured debt 186,538 258,981 1,110 70,859 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - 254 - 35 Less: Unearned compensation - - - - Redeemable preferred stock 27,297 (15,794) - 15,769 STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 75 1 - Additional paid-in capital (367,555) (235,013) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (61,124) 4,139 (10,868) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (511,963) 19,473 (140,923) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (514,500) 19,473 (140,923) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,411 $ 21,881 $ 21,137 ====================================================================================
-------------------------------------------------------------------------------- STERLING CHEMICALS STERLING CANADA, STERLING PULP STERLING PULP INT'L, INC. INC. CHEMICALS US, INC. CHEMICALS, INC. ASSETS 01-37809-H4-11 01-37810-H4-11 01-37811-H4-11 01-37812-H4-11 -------------------------------------------------------------------------------- Current Assets: Cash and cash equivalents $ - $ 170 $ - $ 212 Trade accounts receivable, net - 2,372 1,076 4,678 Other Receivables - 4,406 - - Due from affiliates 3,467 58,291 676 8,733 Inventories - - 117 1,609 Prepaid expenses - - - 1 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,467 65,239 1,869 15,233 Property, plant and equipment, net - - - 41,446 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,451 - Other assets 2,524 2,208 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 5,991 $ 363,258 $ 3,320 $ 56,679 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,650 799 1,542 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 700 12,857 - - Secured - Other Unsecured debt 1,123 265,052 170 62,343 Other / Intercompany - - - Deferred income taxes - - - - Common stock held by new ESOP - - - - Less: Unearned compensation - - - - Redeemable preferred stock - - - - STOCKHOLDERS' EQUITY: Common stock, $.01 par value - 48 - - Additional paid-in capital - 83,348 4,020 1,451 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (349) 745 (792) (10,175) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 430 (6,453) 2,351 (7,206) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 430 (6,453) 2,351 (7,206) TOTAL LIABILITIES AND EQUITY $ 5,991 $ 363,258 $ 3,320 $ 56,679 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,330 Trade accounts receivable, net - 74,262 Other Receivables - 7,954 Due from affiliates (112,357) (276) Inventories - 39,834 Prepaid expenses - 4,548 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (112,357) 127,652 Property, plant and equipment, net - 167,533 Deferred income taxes - - Investments-Third Party - 6,832 Investments in Subs (381,604) 45,453 Other assets (1) 40,579 -------------------------------- TOTAL ASSETS $(493,962) $ 388,049 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (47,094) 159,364 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (11,656) 56,405 Secured - Other 410 Unsecured debt (133,138) 713,038 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - 289 Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,180) (546,055) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (79,512) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,181) (861,192) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,181) (863,729) TOTAL LIABILITIES AND EQUITY $(493,962) $ 388,049 ================================
* 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
------------------------------------------------------------------------------------------- Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-02 ------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 1,438 2,652 $ 1,043 $ 1,242 $ 2,368 $ 773 $ 956 ROYALTY AND REVENUE PAYABLE -- NOTES PAYABLE - INSURANCE -- TAX PAYABLE: -- Federal Payroll Taxes -- State Payroll & Sales -- Ad Valorem Taxes -- Other Taxes 155 100 120 113 27 166 192 TOTAL TAXES PAYABLE $ 155 $ 100 $ 120 $ 113 $ 27 $ 166 $ 192 SECURED DEBT POST-PETITION -- ACCRUED INTEREST PAYABLE -- *ACCRUED PROFESSIONAL FEES: -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 360 321 374 354 422 442 394 2. Lease Operating Expenses/Capital -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 1,953 $ 3,073 $ 1,537 $ 1,709 $ 2,817 $ 1,381 $ 1,542 =================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH JULY 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $159,364 $ 149,287 $ -- $ 415 $ 4,816 $ 4,846 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 59,395 $ 59,395 $ -- $ -- $ -- $ -- 31-60 122 122 -- -- -- -- 61-90 859 859 -- -- -- -- 91 + 28,749 28,749 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 89,125 $ 89,125 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 JULY 31, 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) $ -- $ 31,375,535 $ 212,365 $ 1,861,900 TOTAL COST OF REVENUES -- 28,776,747 212,365 2,239,380 GROSS PROFIT $ -- $ 2,598,788 $ -- $ (377,480) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 41,359 $ 995,615 $ -- $ 136,196 Insiders Compensation -- -- -- -- Professional Fees -- 1,574,317 -- -- Other (Earnings in Joint Venture) -- 433,509 (50,511) -- TOTAL OPERATING EXPENSE $ 41,359 $ 3,003,441 $ (50,511) $ 136,196 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (41,359) $ (404,653) $ 50,511 $ (513,676) INTEREST EXPENSE (includes amort of debt fees) -- 2,545,388 -- 614,434 DEPRECIATION -- 1,959,389 -- 47,662 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,504,777 $ -- $ 662,096 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (41,359) $ (4,909,430) $ 50,511 $ (1,175,772) INCOME TAXES -- -- 2,385 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (41,359) $ (4,909,430) $ 48,126 $ (1,175,772) ==================================================================================================================================== 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 $ 938,666 $ 578,568 TOTAL COST OF REVENUES -- 75,015 695,045 GROSS PROFIT $ 83,333 $ 863,651 $ (116,477) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 10,652 $ 253,095 $ (96,072) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 10,652 $ 253,095 $ (96,072) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 72,681 $ 610,556 $ (20,405) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,534 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,329 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 12,016 $ (35,773) $ (20,405) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 12,016 $ (35,773) $ (20,405) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,407,217 $ (83,333) $ 38,374,251 TOTAL COST OF REVENUES 2,326,294 (83,333) 34,241,513 GROSS PROFIT $ 1,080,923 $ -- $ 4,132,738 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,505 $ (558,910) 1,407,440 Insiders Compensation -- -- -- Professional Fees -- -- 1,574,317 Other (Earnings in Joint Venture) -- -- 382,998 TOTAL OPERATING EXPENSE $ 625,505 $ (558,910) $ 3,364,755 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 455,418 $ 558,910 767,983 INTEREST EXPENSE (includes amort of debt fees) -- 558,910 3,916,931 DEPRECIATION 325,962 -- 2,841,808 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 325,962 $ 558,910 $ 6,758,739 ================================================================================================================= NET INCOME BEFORE TAXES $ 129,456 $ -- $ (5,990,756) INCOME TAXES -- -- 2,385 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 129,456 $ -- $ (5,993,141) =================================================================================================================
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 Jan-02 Feb-02 Mar-02 - ------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ 147,113 $ 50,128 $ (45,869) ---------- ---------- ------------ RECEIPTS: 2. CASH SALES $ -- $ ---------- ------------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 4,683,780 2,872,054 3,070,216 ---------- ---------- ------------ 4. LOANS & ADVANCES (attach list) -- ---------- ------------ 5. SALE OF ASSETS -- ---------- ------------ 6. OTHER (attach list) 2,478,016 1,810,427 3,894,062 ---------- ---------- ------------ TOTAL RECEIPTS $7,161,796 $4,682,481 $ 6,964,278 ---------- ---------- ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A ---------- ------------ DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- ---------- ------------ 8. PAYROLL TAXES PAID -- -- ---------- ------------ 9. SALES, USE & OTHER TAXES PAID 906 700 ---------- ------------ 10. SECURED/RENTAL/LEASES 669 680 1,070,005 ---------- ---------- ------------ 11. UTILITIES 682,974 1,207,375 -- ---------- ---------- ------------ 12. INSURANCE -- -- 269,741 ---------- ---------- ------------ 13. INVENTORY PURCHASES 289,263 245,145 46 ---------- ---------- ------------ 14. VEHICLE EXPENSES 142 -- 126 ---------- ---------- ------------ 15. TRAVEL & ENTERTAINMENT 2,751 2,334 130,331 ---------- ---------- ------------ 16. REPAIRS, MAINTENANCE & SUPPLIES 94,732 106,723 198,980 ---------- ---------- ------------ 17. ADMINISTRATIVE & SELLING 228,742 219,941 ---------- ---------- ------------ 18. OTHER (attach list) 5,959,508 2,995,373 5,335,761 ---------- ---------- ------------ TOTAL DISBURSEMENTS FROM OPERATIONS $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 $7,258,781 $4,778,478 $ 7,005,690 ---------- ---------- ------------ 22. NET CASH FLOW $ (96,985) $ (95,997 $ (41,412) ---------- ---------- ------------ 23. CASH - END OF MONTH (MOR-2) $ 50,128 $ (45,869 $ (87,281) ========== ========== ============ ======================================================================================================================== CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 DATE ------------------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ (87,281) $ 48,725 $ (79,248) $ (72,403) $ 308,953 ----------- ----------- ---------- ---------- ----------- RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- $ -- ----------- ----------- ---------- ---------- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,547,110 3,163,218 3,106,659 3,317,545 39,146,033 ----------- ----------- ---------- ---------- ----------- 4. LOANS & ADVANCES (attach list) -- -- -- -- -- ----------- ----------- ---------- ---------- ----------- 5. SALE OF ASSETS -- -- -- -- -- ----------- ----------- ---------- ---------- ----------- 6. OTHER (attach list) 2,842,408 2,489,971 3,079,681 2,669,707 36,285,188 ----------- ----------- ---------- ---------- ----------- TOTAL RECEIPTS $ 6,389,518 $ 5,653,189 $6,186,340 $5,987,252 $75,431,221 ----------- ----------- ---------- ---------- ----------- (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 434 -- -- 432 2,472 ----------- ----------- ---------- ---------- ----------- 10. SECURED/RENTAL/LEASES 552 6,432 2,857 4,535 1,101,498 ----------- ----------- ---------- ---------- ----------- 11. UTILITIES 1,202,470 1,773,292 643,683 1,088,733 13,429,752 ----------- ----------- ---------- ---------- ----------- 12. INSURANCE -- -- -- -- 269,741 ----------- ----------- ---------- ---------- ----------- 13. INVENTORY PURCHASES 255,526 254,505 237,487 252,476 2,880,117 ----------- ----------- ---------- ---------- ----------- 14. VEHICLE EXPENSES -- -- -- -- 268 ----------- ----------- ---------- ---------- ----------- 15. TRAVEL & ENTERTAINMENT 265 6,628 8,209 7,464 174,246 ----------- ----------- ---------- ---------- ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 92,812 163,351 93,590 93,014 1,335,593 ----------- ----------- ---------- ---------- ----------- 17. ADMINISTRATIVE & SELLING 209,070 220,698 188,815 279,602 2,402,361 ----------- ----------- ---------- ---------- ----------- 18. OTHER (attach list) 4,492,383 3,356,255 5,004,854 3,976,219 53,931,752 ----------- ----------- ---------- ---------- ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,253,512 $ 5,781,161 $6,179,495 $5,702,474 $75,527,799 ----------- ----------- ---------- ---------- ----------- 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 $5,702,474 $75,527,799 ----------- ----------- ---------- ---------- ----------- 22. NET CASH FLOW $ 136,006 $ (127,973) $ 6,845 $ 284,778 $ (96,578) ----------- ----------- ---------- ---------- ----------- 23. CASH - END OF MONTH (MOR-2) $ 48,725 $ (79,248) $ (72,403) $ 212,375 $ 212,375 =========== =========== ========== ========== ===========
MOR-7 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
==================================================================================================================================== OTHER CASH RECEIPTS AND Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 DISBURSEMENTS: - ------------------------------------------------------------------------------------------------------------------------------------ 6.OTHER RECEIPTS: Interest Income $ -- $ -- $ $ $ -- $ -- $ -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 401(k) Plan Refund -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cobra Insurance Payment -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Miscellaneous -- -- 73 -- 2,225 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Emission Credits -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Trade AR receipts of an affiliated co. SPC LTD 36,733 43,427 9,445 265,953 147,898 4,232 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals 1,318,000 1,767,000 1,846,000 1,788,000 2,342,000 3,079,681 1,802,148 cash receipts re Inter company AR 927,448 -- 2,038,617 788,455 802,760 Capital Contribution from SPCUS 195,835 58,342 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER RECEIPTS $2,478,016 $1,810,427 $3,894,062 $2,842,408 $2,489,971 $3,079,681 $2,669,707 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 18.OTHER DISBURSEMENTS: Capital Expenditures $ 45,835 $ 73,428 $ 150,489 $ 45,333 $ 13,337 $ 63,454 $ 97,351 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 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 4,753,659 2,921,945 3,146,655 3,673,595 3,342,918 3,139,718 3,141,618 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- cash disbursements re Inter company AP 1,123,282 -- 2,038,617 773,455 1,801,682 737,250 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $5,959,508 $2,995,373 $5,335,761 $4,492,383 $3,356,255 $5,004,854 $3,976,219 ========== ========== ========== ========== ========== ========== ==========
========================================================= OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: DATE - --------------------------------------------------------- 6.OTHER RECEIPTS: Interest Income $ -- ----------- 401(k) Plan Refund -- ----------- Cobra Insurance Payment -- ----------- Miscellaneous 2,298 ----------- Emission Credits -- ----------- Trade AR receipts of an affiliated co. SPC LTD 1,340,711 ----------- Cash advance from Sterling Chemicals 24,537,329 cash receipts re Inter company AR Capital Contribution from SPCUS ----------- TOTAL OTHER RECEIPTS $25,880,338 ----------- 18.OTHER DISBURSEMENTS: Capital Expenditures $789,745.92 ----------- 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 $ 3,014,361 ===========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF JULY 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 $ 75,607 $ 100 $ (161,812) $ 13,703 $ -- ------------ --------------- --------------- ---------------- ------ RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,846,602 470,944 -- ------------ --------------- --------------- ---------------- ------ 4. LOANS & ADVANCES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 5. SALE OF ASSETS -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 6. OTHER (attach list) 6,257 -- 2,638,250 25,200 -- ------------ --------------- --------------- ---------------- ------ TOTAL RECEIPTS $ 2,852,858 $ 470,944 $ 2,638,250 $ 25,200 $ -- ------------ --------------- --------------- ---------------- ------ (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 432 -- ------------ --------------- --------------- ---------------- ------ 10. SECURED/RENTAL/LEASES 4,535 -- -- ------------ --------------- --------------- ---------------- ------ 11. UTILITIES 1,088,733 -- -- ------------ --------------- --------------- ---------------- ------ 12. INSURANCE -- -- -- ------------ --------------- --------------- ---------------- ------ 13. INVENTORY PURCHASES 252,476 -- -- ------------ --------------- --------------- ---------------- ------ 14. VEHICLE EXPENSES -- -- -- ------------ --------------- --------------- ---------------- ------ 15. TRAVEL & ENTERTAINMENT 7,464 -- -- ------------ --------------- --------------- ---------------- ------ 16. REPAIRS, MAINTENANCE & SUPPLIES 91,964 1,050 -- ------------ --------------- --------------- ---------------- ------ 17. ADMINISTRATIVE & SELLING 278,454 1,148 -- ------------ --------------- --------------- ---------------- ------ 18. OTHER (attach list) 2,670,674 470,944 834,601 -- -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,670,674 $ 470,944 $ 2,558,227 $ 2,630 $ -- ------------ --------------- --------------- ---------------- ------ 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 20. U.S. TRUSTEE FEES -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS $ 2,670,674 $ 470,944 $ 2,558,227 $ 2,630 $ -- ------------ --------------- --------------- ---------------- ------ 22. NET CASH FLOW $ 182,184 $ -- $ 80,023 $ 22,570 $ -- ------------ --------------- --------------- ---------------- ------ 23. CASH - END OF MONTH (MOR-2) $ 257,791 $ 100 $ (81,789) $ 36,273 $ -- ============ =============== =============== ================ ====== =================================================================== CASH RECEIPTS AND DISBURSEMENTS TOTAL ------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ (72,402) ----------- RECEIPTS: 2. CASH SALES $ -- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,317,545 ----------- 4. LOANS & ADVANCES (attach list) -- ----------- 5. SALE OF ASSETS -- ----------- 6. OTHER (attach list) 2,669,707 ----------- TOTAL RECEIPTS $ 5,987,252 ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A ----------- DISBURSEMENTS: 7. NET PAYROLL $ -- ----------- 8. PAYROLL TAXES PAID -- ----------- 9. SALES, USE & OTHER TAXES PAID 432 ----------- 10. SECURED/RENTAL/LEASES 4,535 ----------- 11. UTILITIES 1,088,733 ----------- 12. INSURANCE -- ----------- 13. INVENTORY PURCHASES 252,476 ----------- 14. VEHICLE EXPENSES -- ----------- 15. TRAVEL & ENTERTAINMENT 7,464 ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 93,014 ----------- 17. ADMINISTRATIVE & SELLING 279,602 ----------- 18. OTHER (attach list) 3,976,219 ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 5,702,475 ----------- 19. PROFESSIONAL FEES $ -- ----------- 20. U.S. TRUSTEE FEES -- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- ----------- TOTAL DISBURSEMENTS $ 5,702,475 ----------- 22. NET CASH FLOW $ 284,777 ----------- 23. CASH - END OF MONTH (MOR-2) $ 212,375 ===========
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF JULY 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 2,025 200 2,225 ---------- ---------- ---------- ---------- ---------- Transfer Between Accounts (25,000) 25,000 -- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals -- 1,802,148 -- 1,802,148 Funds belonging to Sterling Pulp Chemicals Ltd. 4,232 -- -- -- 4,232 rec'd in error and to be returned in Sept 01. -- cash receipts re Inter company AR 802,760 -- 802,760 ---------- ---------- ---------- ---------- ---------- Return of investment from SPCUS 58,342 58,342 TOTAL OTHER RECEIPTS $ 6,257 $ -- $2,638,250 $ 25,200 $2,669,707 ---------- ---------- ---------- ---------- ---------- 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- -- Capital Expenditures $ $ $ 97,351 $ -- $ 97,351 ---------- ---------- ---------- ---------- ---------- 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 737,250 737,250 ---------- ---------- ---------- ---------- ---------- CIT revolver cash sweep 2,670,674 470,944 3,141,618 ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS -- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $2,670,674 $ 470,944 $ 834,601 $ -- $3,976,219 ========== ========== ========== ========== ==========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11 CASH ACCOUNT RECONCILIATION MONTH OF JULY 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 $ 257,791 $ 100 $ 4,880 $ 262,771 $ 36,836 $ 299,608 - ---------------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT 1,764 $ 1,764 1,764 - ---------------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS (88,433) (88,433) (563) (88,996) - ---------------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ 257,791 $ 100 $ (81,789) $ 176,102 $ 36,273 $ - $ - $ 212,375 - ---------------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOKS $ 75,607 $ 100 $ (161,812) $ (86,105) $ 13,703 (72,402) - ---------------------------------------------------------------------------------------------------------------------------------- RECEIPTS 2,852,858 470,944 2,663,250 5,987,052 200 5,987,252 - ---------------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS (25,000) (25,000) 25,000 - ---------------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - - ---------------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - - ---------------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS (2,670,674) (470,944) (2,558,227) (5,699,845) (2,630) (5,702,475) - ---------------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ 257,791 $ 100 $ (81,789) $ 176,102 $ 36,273 $ - $ - $ (212,375) ==================================================================================================================================
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.)
============================================================================================================================= Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE 1. $-- $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 7. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 8. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 9. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- TOTAL INSIDERS (MOR-1) $-- $-- $-- $-- $-- $-- $-- $-- === === === === === === === ===
============================================================================================================================= Jan-2002 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-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-----