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