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