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