-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C/U9PRrkZkk9Y2tdVEXv/3lI5CjHIOdqu0fy8SwP6hXwq8Vdz3cmFuxshPZ/gduW pSJL71rDppE5Dcci1G+fQA== 0000950129-02-004725.txt : 20020926 0000950129-02-004725.hdr.sgml : 20020926 20020926135330 ACCESSION NUMBER: 0000950129-02-004725 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20020920 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020926 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING CHEMICAL INC CENTRAL INDEX KEY: 0001014669 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 760502785 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-04343-01 FILM NUMBER: 02772944 BUSINESS ADDRESS: STREET 1: 1200 SMITH STREET STREET 2: SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 BUSINESS PHONE: 7136503700 MAIL ADDRESS: STREET 1: C/O STERLING GROUP INC STREET 2: EIGHT GREENWAY PLAZA, SUITE 702 CITY: HOUSTON STATE: TX ZIP: 77046 FORMER COMPANY: FORMER CONFORMED NAME: STX CHEMICALS CORP DATE OF NAME CHANGE: 19960516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC /TX/ CENTRAL INDEX KEY: 0000795662 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 760185186 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10059 FILM NUMBER: 02772945 BUSINESS ADDRESS: STREET 1: 1200 SMITH ST, SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 BUSINESS PHONE: 7136503700 MAIL ADDRESS: STREET 1: 1200 SMITH ST SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC DATE OF NAME CHANGE: 19960828 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS INC /TX/ DATE OF NAME CHANGE: 19961218 8-K 1 h00019e8vk.txt STERLING CHEMICALS HOLDINGS, INC. - 9/20/2002 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 8-K CURRENT REPORT FILED PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): September 20, 2002 STERLING CHEMICALS HOLDINGS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 1-00059 76-0185186 (STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.) OR ORGANIZATION) 1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------------------ STERLING CHEMICALS INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 333-04343-01 76-0502785 (STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.) OR ORGANIZATION) 1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------------------ ================================================================================ ITEM 7. EXHIBITS Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals Holdings, Inc. for August 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for August 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for August 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for August 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for August 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for August 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for August 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for August 2002. ITEM 9. REGULATION FD DISCLOSURE On July 16, 2001, Sterling Chemicals Holdings, Inc. and its subsidiaries Sterling Chemicals Inc., Sterling Chemicals Energy, Inc., Sterling Fibers, Inc., Sterling Chemicals International, Inc., Sterling Canada Inc., Sterling Pulp Chemicals US, Inc. and Sterling Pulp Chemicals Inc. filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, in Houston, Texas (the "Bankruptcy Court"). These petitions were styled as In re Sterling Chemicals Holdings, Inc., In re Sterling Chemicals Inc., In re Sterling Chemicals Energy, Inc., In re Sterling Fibers, Inc., In re Sterling Chemicals International, Inc., In re Sterling Canada Inc., In re Sterling Pulp Chemicals US, Inc. and In re Sterling Pulp Chemicals Inc., respectively, Case Numbers 01-378[05-12]-H4-11, (05-12 being the different case numbers). Each of Sterling Chemicals Holdings, Inc. and these other entities are being operated as debtors-in-possession under the Bankruptcy Code. Attached are exhibits containing monthly operating reports filed by the debtors with the Bankruptcy Court for August 2002. The monthly operating reports filed herewith contain unaudited financial information that is subject to future reconciliations and adjustments that may materially affect stockholder's equity (deficit). -2- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each of the Registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STERLING CHEMICALS HOLDINGS, INC. Date: September 26, 2002 By: /s/ DAVID G. ELKINS ------------------------------------- David G. Elkins, President STERLING CHEMICALS INC. Date: September 26, 2002 By: /s/ DAVID G. ELKINS ------------------------------------- David G. Elkins, President -3- EXHIBIT INDEX Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals Holdings, Inc. for August 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for August 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for August 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for August 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for August 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for August 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for August 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for August 2002. EX-99.1 3 h00019exv99w1.txt MONTHLY OPERATING RPT.-STERLING CHEMICALS HOLDINGS EXHIBIT 99.1 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS HOLDINGS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37805-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2002
MONTH 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 - ------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ -- $ -- $ -- $ -- $ -- $ -- $ -- INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (957) $ (960) $(46,778) $(12,965) $ (932) $(41,359) $ -- NET INCOME (LOSS) (MOR-6) $ (775) $ (794) $(46,590) $(12,788) $ (932) $(41,359) $ -- PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $170,000 $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ -- $ -- $ -- $ -- $170,000 $ -- $ -- (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ------------------------------- CASUALTY YES (x) NO ( ) 08-01-02 LIABILITY YES (x) NO ( ) 07-01-02 VEHICLE YES (x) NO ( ) 07-01-02 WORKER'S YES (x) NO ( ) 07-01-02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ---------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ----------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ----------------------------------------------- MOR-1 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 14 9/19/02 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 9/19/02
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 AUGUST 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 $ 1,440 $ - $ 333 Trade accounts receivable, net - 67,625 86 2,774 Other Receivables - 476 - 2,711 Due from affiliates 1,375 26,378 13,702 - Inventories - 25,564 - 8,063 Prepaid expenses 33 4,912 - 36 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 126,395 13,788 13,917 Property, plant and equipment, net - 116,114 2,640 5,787 Deferred income taxes - - - - Investments-Third Party - 1,500 5,408 - Investments in Subs 35,060 94,735 - - Other assets 865 33,462 - 1,160 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,206 $ 21,836 $ 20,864 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 168,110 1,230 7,508 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 45,898 - 11,546 Secured - Other 410 Unsecured debt 186,538 260,294 1,110 71,062 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - - - - 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) - 7,908 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (62,204) 4,162 (12,221) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (513,043) 19,496 (142,242) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (515,580) 19,496 (142,242) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,206 $ 21,836 $ 20,864 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,107 1,036 5,288 Other Receivables - 4,410 - - Due from affiliates 3,551 59,725 888 10,092 Inventories - - 145 1,396 Prepaid expenses - - - - Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,551 66,242 2,069 16,776 Property, plant and equipment, net - - - 41,187 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,514 - Other assets 2,501 1,695 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 6,052 $ 363,748 $ 3,583 $ 57,963 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,567 1,109 2,605 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 737 13,550 - - 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 1,514 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (325) 625 (839) (10,017) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 454 (6,573) 2,304 (6,985) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 454 (6,573) 2,304 (6,985) TOTAL LIABILITIES AND EQUITY $ 6,052 $ 363,748 $ 3,583 $ 57,963 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,774 Trade accounts receivable, net - 78,916 Other Receivables - 7,597 Due from affiliates (114,980) 731 Inventories - 35,168 Prepaid expenses - 4,981 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (114,980) 129,167 Property, plant and equipment, net - 165,728 Deferred income taxes - - Investments-Third Party - 6,908 Investments in Subs (381,667) 45,453 Other assets (1) 39,682 -------------------------------- TOTAL ASSETS $(496,648) $ 386,938 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,172) 156,262 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (12,283) 59,448 Secured - Other 410 Unsecured debt (133,055) 714,637 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - - Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,244) (546,022) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (81,907) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,245) (863,554) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,245) (866,091) TOTAL LIABILITIES AND EQUITY $(496,648) $ 386,938 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 6 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
---------------------------------------------------------------------------------- 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 ---------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- ROYALTY AND REVENUE PAYABLE -- -- NOTES PAYABLE - INSURANCE -- -- TAX PAYABLE: -- -- Federal Payroll Taxes -- -- State Payroll & Sales -- -- Ad Valorem Taxes -- -- Other Taxes -- -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- SECURED DEBT POST-PETITION -- -- ACCRUED INTEREST PAYABLE -- -- *ACCRUED PROFESSIONAL FEES: -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- -- 2. Lease Operating Expenses/Capital -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ -- $ -- $ -- $ -- $ -- $ -- $ -- ============================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH AUGUST 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 63,810 $ 63,810 $ -- $ -- $ -- $ -- 31-60 831 831 -- -- -- -- 61-90 146 146 -- -- -- -- 91 + 28,898 28,898 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 93,685 $ 93,685 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 AUGUST 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) $ -- $ 44,301,404 $ 1,139,545 $ 1,528,346 TOTAL COST OF REVENUES -- 38,681,482 1,139,545 2,071,510 GROSS PROFIT $ -- $ 5,619,922 $ -- $ (543,164) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 995,228 $ -- $ 145,864 Insiders Compensation -- 112,872 -- -- Professional Fees -- 1,561,468 -- -- Other (Earnings in Joint Venture) -- 76,424 (76,424) -- TOTAL OPERATING EXPENSE $ -- $ 2,745,992 $ (76,424) $ 145,864 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ 2,873,930 $ 76,424 $ (689,028) INTEREST EXPENSE (includes amort of debt fees) -- 2,402,259 -- 614,434 DEPRECIATION -- 1,855,497 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,257,756 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ -- $ (1,383,826) $ 76,424 $ (1,351,033) INCOME TAXES -- -- 1,032 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ -- $ (1,383,826) $ 75,392 $ (1,351,033) ==================================================================================================================================== 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 $ 840,227 $ 559,868 TOTAL COST OF REVENUES -- 56,024 693,525 GROSS PROFIT $ 83,333 $ 784,203 $ (133,657) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 258,199 $ (87,100) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 258,199 $ (87,100) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 526,004 $ (46,557) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,539 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,334 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (120,330) $ (46,557) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (120,330) $ (46,557) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,686,476 $ (453,668) $ 51,685,531 TOTAL COST OF REVENUES 2,577,499 (453,668) 44,765,917 GROSS PROFIT $ 1,108,977 $ -- $ 6,919,614 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,862 $ (558,861) 1,379,192 Insiders Compensation -- -- 112,872 Professional Fees -- -- 1,561,468 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,862 $ (558,861) $ 3,053,532 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 483,115 $ 558,861 3,866,082 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,773,758 DEPRECIATION 326,244 -- 2,738,107 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,244 $ 558,861 $ 6,511,865 ================================================================================================================= NET INCOME BEFORE TAXES $ 156,871 $ -- $ (2,645,783) INCOME TAXES -- -- 1,032 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 156,871 $ -- $ (2,646,815) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
CASH RECEIPTS AND FILING TO DISBURSEMENTS Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE - ----------------- ------- ------- -------- --------- --------- --------- --------- ---------- 1. CASH-BEGINNING OF MONTH 170,410 170,592 170,758 170,946 171,123 1,123 1,123 1,362,081 ======= ======= ======= ========= ========= ========= ========= ========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- -- -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 182 166 188 177 -- -- -- 14,043 ------- ------- ------- --------- --------- --------- -------- ---------- TOTAL RECEIPTS 182 166 188 177 -- -- -- 14,043 ------- ------- ------- --------- --------- --------- -------- ---------- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A ======= ======= ======= ========= ========= ========= ======== ========== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES -- -- -- -- -- -- -- -- 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) -- -- -- -- -- -- -- -- ------- ------- ------- --------- --------- --------- -------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- -- -- -- -- ======= ======= ======= ========= ========= ========= ======== ========== 19. PROFESSIONAL FEES -- -- -- -- 170,000 -- -- 1,375,001 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- ------- ------- ------- --------- --------- --------- -------- ---------- TOTAL DISBURSEMENTS -- -- -- -- 170,000 -- -- 1,375,001 ======= ======= ======= ========= ========= ========= ======== ========== 22. NET CASH FLOW 182 166 188 177 (170,000) -- -- (1,360,958) 23. CASH - END OF MONTH (MOR-2) 170,592 170,758 170,946 171,123 1,123 1,123 1,123 1,123
MOR-7 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE ----------------------- ------ ------ -------- ------ ------ ------ ------ --------- 6. OTHER RECEIPTS: Interest Income 182 166 188 177 -- -- -- 14,043 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous -- -- -- -- -- -- -- -- Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- ------ ------ -------- ------ ------ ------ ------ -------- TOTAL OTHER RECEIPTS 182 166 188 177 -- -- -- 14,043 ====== ====== ======== ====== ====== ====== ====== ======== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures -- -- -- -- -- -- -- -- Revenue & Royalties -- -- -- -- -- -- -- -- Interest Payment -- -- -- -- -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- -- -- -- -- Severance tax -- -- -- -- -- -- -- -- Pre-petition checks voided in -- -- -- -- -- -- -- -- current period ------ ------ -------- ------ ------ ------ ------ -------- TOTAL OTHER DISBURSEMENTS -- -- -- -- -- -- -- -- ====== ====== ======== ====== ====== ====== ====== ========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS 00100547125 00100535021 Debtor - ----------------- ----------- ------------ ------------ 1. CASH-BEGINNING OF MONTH -- 1,123 1,123 =========== ============ ============ RECEIPTS: 2. CASH SALES -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- 5. SALE OF ASSETS -- -- -- 6. OTHER (attach list) -- -- -- ----------- ------------ ------------ TOTAL RECEIPTS -- -- -- ----------- ------------ ------------ (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A =========== ============ ============ DISBURSEMENTS: 7. NET PAYROLL -- -- -- 8. PAYROLL TAXES PAID -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- 11. UTILITIES -- -- -- 12. INSURANCE -- -- -- 13. INVENTORY PURCHASES -- -- -- 14. VEHICLE EXPENSES -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- 18. OTHER (attach list) -- -- -- ----------- ------------ ------------ TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- =========== ============ ============ 19. PROFESSIONAL FEES -- -- -- 20. U.S. TRUSTEE FEES -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ----------- ------------ ------------ TOTAL DISBURSEMENTS -- -- -- =========== ============ ============ 22. NET CASH FLOW -- -- -- 23. CASH - END OF MONTH (MOR-2) -- 1,123 1,123
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
OTHER CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS: 00100547125 00100535021 Debtor - ----------------------- ----------- ----------- -------- 6. OTHER RECEIPTS: Interest Income -- -- -- 401(k) Plan Refund -- -- -- Cobra Insurance Payment -- -- -- Miscellaneous -- -- -- Royalty Owners Trust Account -- -- -- Emission Credits -- -- -- -- -- -- -- -- ----------- ----------- -------- TOTAL OTHER RECEIPTS -- -- -- =========== =========== ======== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures -- -- -- Revenue & Royalties Interest Payment -- -- -- Restricted Cash - Bond Funding -- -- -- Severance tax Pre-petition checks voided in current period -- -- -- ----------- ----------- -------- TOTAL OTHER DISBURSEMENTS -- -- -- =========== =========== ========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals Holdings, Inc. CASE NUMBER: 01-37805-H-11 CASH ACCOUNT RECONCILIATION MONTH OF AUGUST 2002 -----------
Closed BANK NAME Chase Bk of TX Chase Bk of TX ACCOUNT NUMBER 00100547125 0010535021 ACCOUNT TYPE Concentration Concentration TOTAL - -------------- ------------- -------------- ---------- BANK BALANCE $ -- $ 1,123 $ 1,123 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- ADJUSTED BANK BALANCE $ -- $ 1,123 $ -- $ -- $ -- $ -- $ -- $ -- $ 1,123 ============= ============== ====== ====== ====== ====== ====== ====== ========== BEGINNING CASH - PER BOOKS $ -- $ 1,123 $ 1,123 RECEIPTS -- TRANSFERS BETWEEN ACCOUNTS -- (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS -- ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- ENDING CASH - PER BOOKS $ -- $ 1,123 $ -- $ -- $ -- $ -- $ -- $ -- $ 1,123 ============= ============== ====== ====== ====== ====== ====== ====== ==========
MOR-8 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE(2) Feb-02 Mar-02 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 DATE - --------------------------------------- -------- -------- -------- -------- -------- -------- -------- ---------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- -------- -------- ------- -------- -------- -------- -------- ---------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======= ======== ======== ======== ======== ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Feb-02 Mar-02 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 DATE - ------------------------- ------ ------- -------- -------- -------- ----------- -------- ---------- 1. Skadden, Arps, Slate, Meagher & Flom LLP $ -- $ -- $ -- $ -- $170,000 -- $ -- $1,141,786 2. Arthur Andersen -- -- -- -- -- -- -- 233,215 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- ------ ------ ------- ------ -------- ----------- ----------- ---------- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $170,000 $ -- $ -- $1,375,001 ====== ====== ======= ====== ======== =========== =========== ==========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.2 4 h00019exv99w2.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 CASEN UMBER: 01-37806-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2002
2/28/02 3/31/02 4/30/02 MONTH Revised Revised Revised 5/31/02 6/30/02 7/31/02 8/31/02 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $ 20,096,849 $ 21,923,335 $ 42,567,625 $ 45,186,158 $ 48,626,030 $ 31,375,535 $ 44,301,404 INCOME BEFORE INT. DEPREC./TAX $ (2,749,269) $ (148,300) $ 5,024,220 $ 4,957,088 $ 7,401,423 $ (404,653) $ 2,873,930 NET INCOME (LOSS) (MOR-6) $ (6,872,689) $ (4,363,757) $ 495,693 $ 813,702 $ 2,748,385 $ (4,909,430) $ (1,383,826) PAYMENTS TO INSIDERS (MOR-9) $ 116,429 $ 150,683 $ 494,281 $ 78,911 $ 131,411 $ 78,911 $ 112,872 PAYMENTS TO PROFESSIONALS (MOR-9) $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 1,014,508 $ 700,599 $ 1,019,131 $ 622,317 TOTAL DISBURSEMENTS (MOR-7)(1) $ 45,245,622 $ 56,865,534 $ 57,893,073 $ 69,069,844 $ 90,769,682 $ 89,651,958 $ 73,952,992 (1) Excludes intercompany transfers as follows: $ 18,261,420 $ 23,396,865 $ 20,186,176 $ 16,157,239 $ 17,490,363 $ 15,729,203 $ 14,831,022
***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 9/19/02 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 9/19/02
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 AUGUST 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 $ 1,440 $ - $ 333 Trade accounts receivable, net - 67,625 86 2,774 Other Receivables - 476 - 2,711 Due from affiliates 1,375 26,378 13,702 - Inventories - 25,564 - 8,063 Prepaid expenses 33 4,912 - 36 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 126,395 13,788 13,917 Property, plant and equipment, net - 116,114 2,640 5,787 Deferred income taxes - - - - Investments-Third Party - 1,500 5,408 - Investments in Subs 35,060 94,735 - - Other assets 865 33,462 - 1,160 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,206 $ 21,836 $ 20,864 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 168,110 1,230 7,508 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 45,898 - 11,546 Secured - Other 410 Unsecured debt 186,538 260,294 1,110 71,062 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - - - - 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) - 7,908 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (62,204) 4,162 (12,221) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (513,043) 19,496 (142,242) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (515,580) 19,496 (142,242) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,206 $ 21,836 $ 20,864 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,107 1,036 5,288 Other Receivables - 4,410 - - Due from affiliates 3,551 59,725 888 10,092 Inventories - - 145 1,396 Prepaid expenses - - - - Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,551 66,242 2,069 16,776 Property, plant and equipment, net - - - 41,187 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,514 - Other assets 2,501 1,695 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 6,052 $ 363,748 $ 3,583 $ 57,963 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,567 1,109 2,605 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 737 13,550 - - 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 1,514 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (325) 625 (839) (10,017) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 454 (6,573) 2,304 (6,985) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 454 (6,573) 2,304 (6,985) TOTAL LIABILITIES AND EQUITY $ 6,052 $ 363,748 $ 3,583 $ 57,963 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,774 Trade accounts receivable, net - 78,916 Other Receivables - 7,597 Due from affiliates (114,980) 731 Inventories - 35,168 Prepaid expenses - 4,981 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (114,980) 129,167 Property, plant and equipment, net - 165,728 Deferred income taxes - - Investments-Third Party - 6,908 Investments in Subs (381,667) 45,453 Other assets (1) 39,682 -------------------------------- TOTAL ASSETS $(496,648) $ 386,938 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,172) 156,262 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (12,283) 59,448 Secured - Other 410 Unsecured debt (133,055) 714,637 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - - Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,244) (546,022) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (81,907) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,245) (863,554) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,245) (866,091) TOTAL LIABILITIES AND EQUITY $(496,648) $ 386,938 ================================
* 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
----------------------------------------------------------------------------------- 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 ----------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 43,581 $ 53,511 $ 61,483 $ 68,952 $ 70,812 $ 65,012 $ 66,090 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- -- TAX PAYABLE: -- -- -- -- -- Federal Payroll Taxes 8 8 98 3 -- -- State Payroll & Sales 364 437 405 409 415 419 419 Ad Valorem Taxes -- -- -- -- -- -- Other Taxes 4,527 5,162 5,795 4,408 3,730 4,290 4,850 TOTAL TAXES PAYABLE $ 4,891 $ 5,607 $ 6,208 $ 4,915 $ 4,148 $ 4,709 $ 5,218 SECURED DEBT POST-PETITION 51,127 56,066 78,668 74,598 76,479 58,656 54,769 ACCRUED INTEREST PAYABLE 553 670 752 518 624 509 486 *ACCRUED PROFESSIONAL FEES: 5,587 5,989 6,106 6,427 7,096 7,490 8,478 OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 31,736 31,003 30,498 32,171 32,233 34,268 33,069 2. Lease Operating Expenses/Capital -- -- -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $137,475 $ 152,846 $ 183,715 $ 187,581 $ 191,392 $170,644 $ 168,110 ============================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH AUGUST 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 63,810 $ 63,810 $ -- $ -- $ -- $ -- 31-60 831 831 -- -- -- -- 61-90 146 146 -- -- -- -- 91 + 28,898 28,898 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 93,685 $ 93,685 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 AUGUST 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) $ -- $ 44,301,404 $ 1,139,545 $ 1,528,346 TOTAL COST OF REVENUES -- 38,681,482 1,139,545 2,071,510 GROSS PROFIT $ -- $ 5,619,922 $ -- $ (543,164) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 995,228 $ -- $ 145,864 Insiders Compensation -- 112,872 -- -- Professional Fees -- 1,561,468 -- -- Other (Earnings in Joint Venture) -- 76,424 (76,424) -- TOTAL OPERATING EXPENSE $ -- $ 2,745,992 $ (76,424) $ 145,864 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ 2,873,930 $ 76,424 $ (689,028) INTEREST EXPENSE (includes amort of debt fees) -- 2,402,259 -- 614,434 DEPRECIATION -- 1,855,497 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,257,756 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ -- $ (1,383,826) $ 76,424 $ (1,351,033) INCOME TAXES -- -- 1,032 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ -- $ (1,383,826) $ 75,392 $ (1,351,033) ==================================================================================================================================== 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 $ 840,227 $ 559,868 TOTAL COST OF REVENUES -- 56,024 693,525 GROSS PROFIT $ 83,333 $ 784,203 $ (133,657) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 258,199 $ (87,100) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 258,199 $ (87,100) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 526,004 $ (46,557) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,539 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,334 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (120,330) $ (46,557) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (120,330) $ (46,557) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,686,476 $ (453,668) $ 51,685,531 TOTAL COST OF REVENUES 2,577,499 (453,668) 44,765,917 GROSS PROFIT $ 1,108,977 $ -- $ 6,919,614 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,862 $ (558,861) 1,379,192 Insiders Compensation -- -- 112,872 Professional Fees -- -- 1,561,468 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,862 $ (558,861) $ 3,053,532 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 483,115 $ 558,861 3,866,082 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,773,758 DEPRECIATION 326,244 -- 2,738,107 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,244 $ 558,861 $ 6,511,865 ================================================================================================================= NET INCOME BEFORE TAXES $ 156,871 $ -- $ (2,645,783) INCOME TAXES -- -- 1,032 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 156,871 $ -- $ (2,646,815) =================================================================================================================
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 Feb-02 Mar-02 ------------ ------------ 1. CASH-BEGINNING OF MONTH 498,098 (1,530,893) ============ ============ RECEIPTS: 2. CASH SALES -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 20,717,983 25,478,506 4. LOANS & ADVANCES - CIT REVOLVER 26,900,000 36,300,000 5. SALE OF ASSETS -- -- 6. OTHER (attach list) 13,860,068 19,408,945 ------------ ------------ TOTAL RECEIPTS 61,478,051 81,187,451 ------------ ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A ============ ============ DISBURSEMENTS: 7. NET PAYROLL 1,930,462 2,601,421 8. PAYROLL TAXES PAID 972,750 $1,053,588 9. SALES, USE & OTHER TAXES PAID -- 1,404,405 10.SECURED/RENTAL/LEASES 154,571 99,905 11.UTILITIES 2,158,233 1,150,288 12.INSURANCE 589,057 410,554 13.INVENTORY PURCHASES 2,984,285 10,861,846 14.VEHICLE EXPENSES -- -- 15.TRAVEL & ENTERTAINMENT 63,635 36,818 16.REPAIRS, MAINTENANCE & SUPPLIES 7,400,962 4,837,494 17.ADMINISTRATIVE & SELLING 2,442,379 3,841,855 18.OTHER (attach list) 43,639,825 52,706,777 TOTAL DISBURSEMENTS FROM OPERATIONS 62,336,159 79,004,950 19.PROFESSIONAL FEES 1,045,883 1,257,449 20.U.S. TRUSTEE FEES -- -- 21.OTHER REORGANIZATION EXPENSES (attach list) 125,000 -- ------------ ------------ TOTAL DISBURSEMENTS 63,507,042 80,262,399 ============ ============ 22.NET CASH FLOW (2,028,991) 925,052 23.CASH - END OF MONTH (MOR-2) (1,530,893) (605,842) per MOR-7 (1,530,893.34) (605,841.51) per 211 trial balance 986,980.26 636,425.59 -------------- -------------- difference 2,517,873.60 1,242,267.10 g/l acct 10123 - not a good account, s/b zero 794.70 794.70 g/l acct 10131 - account was closed before filing, bal s/b zero 4,029.99 4,029.99 g/l acct 10199 - cash overdraft reclass of outstanding checks 2,513,048.91 1,237,442.41 -------------- -------------- reconciled difference 2,517,873.60 1,242,267.10 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE ------------ ------------ ------------ ------------ ------------ ----------- 1. CASH-BEGINNING OF MONTH (605,842) 1,432,341 (223,012) 2,127,996 (648,863) 9,346,546 ============ ============ ============ ============ ============ ============= RECEIPTS: 2. CASH SALES -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 17,926,575 34,807,911 46,518,489 50,696,794 37,988,857 387,144,438 4. LOANS & ADVANCES - CIT REVOLVER 46,100,000 37,400,000 51,000,000 40,400,000 40,900,000 469,100,000 5. SALE OF ASSETS -- -- -- -- -- -- 6. OTHER (attach list) 16,090,857 11,363,818 13,092,564 11,507,508 10,699,263 168,739,245 ------------ ------------ ------------ ------------- ------------ ------------- TOTAL RECEIPTS 80,117,432 83,571,729 110,611,053 102,604,302 89,588,121 1,024,983,684 ------------ ------------ ------------ ------------- ------------ ------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A ============ ============ ============ ============ ============ ============= DISBURSEMENTS: 7. NET PAYROLL 1,983,856 1,609,373 2,733,978 1,746,717 839,107 25,873,080 8. PAYROLL TAXES PAID 932,205 936,861 1,092,418 852,876 819,258 12,073,251 9. SALES, USE & OTHER TAXES PAID 1,650,149 1,456,271 1,303,015 117,874 155,540 7,809,819 10.SECURED/RENTAL/LEASES 30,705 101,829 147,956 167,081 52,603 1,923,109 11.UTILITIES 6,922,372 3,817,800 3,361,146 4,886,600 3,726,325 46,995,325 12.INSURANCE 50,625 15,583 7,256 1,010,982 2,806,647 9,252,911 13.INVENTORY PURCHASES 17,691,587 16,201,310 29,280,908 20,102,494 19,550,777 185,085,126 14.VEHICLE EXPENSES -- -- -- -- -- -- 15.TRAVEL & ENTERTAINMENT 65,732 72,716 38,426 19,843 32,254 625,962 16.REPAIRS, MAINTENANCE & SUPPLIES 3,235,006 1,896,650 1,681,812 1,825,551 2,065,181 30,577,025 17.ADMINISTRATIVE & SELLING 4,503,340 4,089,807 2,334,678 3,411,237 2,111,745 38,014,010 18.OTHER (attach list) 39,441,420 54,014,374 65,577,853 70,220,775 56,002,260 664,443,061 TOTAL DISBURSEMENTS FROM OPERATIONS 76,506,997 84,212,575 107,559,446 104,362,030 88,161,697 1,022,672,677 19.PROFESSIONAL FEES 1,525,502 1,014,508 700,599 971,381 622,317 11,189,059 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 88,784,014 1,034,174,986 ============ ============ ============ ============ ============ ============= 22.NET CASH FLOW 2,038,183 (1,655,353) 2,351,008 (2,776,859) 804,106 (9,191,303) 23.CASH - END OF MONTH (MOR-2) 1,432,341 (223,012) 2,127,996 (648,863) 155,243 155,243 per MOR-7 1,432,341.16 (223,012.32) 2,127,995.75 (648,863.18) 155,243.26 per 211 trial balance 1,865,999.23 1,368,935.72 2,127,995.75 870,570.06 1,439,881.93 -------------- -------------- -------------- ------------ -------------- difference 433,658.07 1,591,948.04 (0.00) 1,456,433.24 1,284,638.67 g/l acct 10123 - not a good account, s/b zero 794.70 0.00 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 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 1,284,638.67 -------------- -------------- -------------- ------------ -------------- reconciled difference 433,658.07 1,591,948.04 0.00 1,456,433.24 1,284,638.67
MOR-7 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE ---------- ------------ ---------- ------------- ------------ ----------- ---------- ----------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- 80,302 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous 223,221 131,124 195,444 128,178 159,394 119,703 129,984 3,143,946 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Account Transfers 13,636,846 17,715,686 15,239,518 11,235,640 11,535,051 10,517,018 9,680,461 154,587,604 Intercompany Transfers -- 1,562,134 655,895 -- 1,398,119 870,787 888,819 10,927,393 ---------- ------------ ---------- ------------- ------------- ---------- ---------- ----------- TOTAL OTHER RECEIPTS 13,860,068 19,408,945 16,090,857 11,363,818 13,092,564 11,507,508 10,699,263 168,739,245 ========== ============ ========== ============= ============= ========== ========== =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures 1,841,654 1,418,900 (581,465) 598,552 134,895 178,576 133,192 6,989,913 Revenue & Royalties - -- -- -- -- -- -- -- Interest Payment - -- -- -- -- -- -- 97,161 Employee Benefits 1,602,513 2,285,842 2,492,292 1,544,520 2,998,019 1,890,070 1,393,784 25,524,397 Severance tax - -- -- -- -- -- -- -- Pre-petition checks voided in current period - -- -- -- -- -- -- (30,000) Account Transfers 13,636,846 17,715,686 15,239,518 11,235,640 11,535,051 10,517,018 9,680,461 154,587,604 CIT Revolver Payments 21,934,238 25,605,169 17,344,416 35,714,063 44,954,575 52,422,925 39,644,262 406,551,509 Intercompany Transfers 4,624,574 5,681,179 4,946,658 4,921,599 5,955,312 5,212,185 5,150,562 70,722,477 ---------- ------------ ---------- ------------- ------------- ---------- ---------- ----------- TOTAL OTHER DISBURSEMENTS 43,639,825 52,706,777 39,441,420 54,014,374 65,577,853 70,220,775 56,002,260 664,443,061 ========== ============ ========== ============= ============= ========== ========== ===========
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 102,356 66,893 787,565 (1,625,683) =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 35,944,072 4. LOANS & ADVANCES - CIT REVOLVER 40,900,000 5. SALE OF ASSETS 6. OTHER (attach list) -- 988,819 2,400,000 6,734,673 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 35,944,072 41,888,819 2,400,000 6,734,673 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL 839,107 -- 8. PAYROLL TAXES PAID 819,258 9. SALES, USE & OTHER TAXES PAID 125,540 30,000 10. SECURED/RENTAL/LEASES 52,603 11. UTILITIES 3,726,325 12. INSURANCE 1,941,029 865,618 13. INVENTORY PURCHASES 18,859,155 691,622 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 32,254 16. REPAIRS, MAINTENANCE & SUPPLIES 2,065,181 17. ADMINISTRATIVE & SELLING 126,725 1,985,020 18. OTHER (attach list) 35,660,171 17,095,799 100,000 516,411 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 35,660,171 41,874,573 1,758,366 6,238,709 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 622,317 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 35,660,171 41,874,573 1,758,366 6,861,026 =============== =============== =============== =============== 22. NET CASH FLOW 283,901 14,246 641,634 (126,353) 23. CASH - END OF MONTH (MOR-2) 386,258 81,139 1,429,199 (1,752,036) CASH RECEIPTS AND Chase Chase Bank One Total DISBURSEMENTS 6301810036508 6301810028508 5561833 Debtor ----------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH -- -- 20,005 (648,863) =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,044,785 37,988,857 4. LOANS & ADVANCES - CIT REVOLVER 40,900,000 5. SALE OF ASSETS -- 6. OTHER (attach list) 436,160 9,850 129,762 10,699,263 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 436,160 9,850 2,174,547 89,588,121 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- -- -- 839,107 8. PAYROLL TAXES PAID 819,258 9. SALES, USE & OTHER TAXES PAID 155,540 10. SECURED/RENTAL/LEASES 52,603 11. UTILITIES 3,726,325 12. INSURANCE 2,806,647 13. INVENTORY PURCHASES 19,550,777 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT 32,254 16. REPAIRS, MAINTENANCE & SUPPLIES 2,065,181 17. ADMINISTRATIVE & SELLING 2,111,745 18. OTHER (attach list) 436,160 9,628 2,184,091 56,002,260 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 436,160 9,628 2,184,091 88,161,697 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 622,317 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 436,160 9,628 2,184,091 88,784,014 =============== =============== =============== =============== 22. NET CASH FLOW -- 222 (9,545) 804,106 23. CASH - END OF MONTH (MOR-2) -- 222 10,461 155,243
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 100,000 2,400,000 6,734,673 Intercompany Transfers 888,819 ---------- ---------- --------- ---------- TOTAL OTHER RECEIPTS -- 988,819 2,400,000 6,734,673 ========== ========== ========= ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures 133,192 Revenue & Royalties Interest Payment Employee Benefits 564,777 383,219 Severance tax Pre-petition checks voided in current period Account Transfers 9,580,461 100,000 CIT Revolver Payments 35,660,171 1,800,000 Intercompany Transfers 5,150,562 ---------- ---------- --------- ---------- TOTAL OTHER DISBURSEMENTS 35,660,171 17,095,799 100,000 516,411 ========== ========== ========= ========== 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 222 129,762 129,984 Royalty Owners Trust Account -- Emission Credits -- Account Transfers 436,160 9,628 9,680,461 Intercompany Transfers 888,819 --------- --------- ------------ ---------- ---------- TOTAL OTHER RECEIPTS 436,160 9,850 -- 129,762 10,699,263 ========= ========= ============ ========== ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- Workover Expense -- Capital Expenditures 133,192 Revenue & Royalties -- Interest Payment -- Employee Benefits 436,160 9,628 1,393,784 Severance tax -- Pre-petition checks voided in current period -- Account Transfers 9,680,461 CIT Revolver Payments 2,184,091 39,644,262 Intercompany Transfers 5,150,562 --------- --------- ------------ ---------- ---------- TOTAL OTHER DISBURSEMENTS 436,160 9,628 -- 2,184,091 56,002,260 ========= ========= ============ ========== ==========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H-11 CASH ACCOUNT RECONCILIATION MONTH OF AUGUST 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 $ 386,036 $ 81,362 $ 313,420 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS (1,752,036) OTHER 222 (222) 1,115,778 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ 386,258 $ 81,140 $ 1,429,198 $ (1,752,036) =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ 102,357 $ 66,894 $ 787,564 $ (1,625,683) RECEIPTS 35,944,072 40,900,000 TRANSFERS BETWEEN ACCOUNTS (13,742,204) 2,400,000 6,734,673 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (35,660,171) (27,143,550) (1,758,366) (6,861,026) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ 386,258 $ 81,140 $ 1,429,198 $ (1,752,036) =============== =============== =============== =============== 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 $ -- $ -- $ 10,460 $ 791,278 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS (1,752,036) OTHER 222 1 1,116,001 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ 222 $ 10,461 $ 155,243 =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ -- $ 20,005 $ (648,863) RECEIPTS 2,174,547 79,018,619 TRANSFERS BETWEEN ACCOUNTS 436,160 9,850 (4,161,521) (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (436,160) (9,628) (2,184,091) (74,052,992) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ 222 $ 10,461 $ 155,243 =============== =============== =============== ===============
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) Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-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 30,333 30,333 30,333 30,333 30,333 30,333 298,666 6. David Elkins/President/Bonus 22,750 136,500 -- 21,875 -- 22,288 225,288 7. David Elkins/President/Expenses 4,601 -- 5,115 -- -- 37 15,166 8. David Elkins/President/Life Insurance -- -- 1,445 3,629 9. Richard Crump/Exec VP Opers/Salary 27,500 27,917 27,917 27,917 27,917 27,917 27,917 273,638 10. Richard Crump/Exec VP Opers/Bonus 20,938 125,625 -- 20,625 -- -- 187,813 11. Richard Crump/Exec VP Opers/Expense 5,404 4,610 6,728 -- 25 24,082 12. Paul Vanderhoven/VP Finance & CFO/Salary 16,667 18,333 18,333 18,333 18,333 18,333 18,333 176,666 13. Paul Vanderhoven/VP Finance & CFO/Bonus 11,000 79,200 -- 10,000 -- -- 110,200 14. Paul Vanderhoven/VP Finance & CFO/Expense 4,629 2,474 6,402 -- -- 166 20,379 15. Robert Roten/Former Pres & Board Member/SERP 2,328 2,328 2,328 2,328 2,328 2,328 2,328 23,280 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 -- -- 13,750 -- 10,000 38,900 18. Rolf Towe/Board Member/BOD fees -- -- 9,650 -- 20,500 19. Rolf Towe/Board Member/Expenses 16,133 -- -- -- 16,133 20. Hunter Nelson/Board Member -- -- 10,350 -- 21,500 21. Frank Hevrdejs/Board Member -- -- 12,050 -- 24,300 -------- --------- -------- ---------- --------- --------- --------- ---------- TOTAL INSIDERS (MOR-1) $116,429 $ 150,683 $494,281 $ 78,911 $ 131,411 $ 78,911 $ 112,872 $1,617,833 ======== ========= ======== ========== ========= ========= ========= ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 DATE - --------------------------- ------------ ----------- ----------- ----------- --------- --------- ---------- ----------- 1. Logan & Company, Inc. $ 15,624.27 $ 23,247 $ 3,541 $ 6,645.54 $ 2,631.30 $ 2,850 $ 13,370 $ 174,118 2. Andrews & Kurth LLP 128,643.28 213,187 132,819 256,170.65 246,122.69 199,288 227,814 1,754,112 3. US Trustee -- -- 46,750 -- -- 47,750 -- 148,000 4. Skadden, Arps, Slate, Meagher & Flom LLP 466,138.76 634,706 321,403 406,542.75 115,338.02 405,299 92,770 2,735,427 5. Akin Gump Strauss 35,089.74 120,257 78,728 81,093.82 104,790.97 64,896 91,414 934,374 6. Arthur Andersen 22,556.70 -- 95,421 70,316.52 -- 12,986 -- 483,048 7. Lazard Freres & Co. LLC 284,550.16 153,356 295,856 138,638.86 182,916.20 138,779 135,315 1,598,024 8. Baker & Botts 46,197.50 32,861 66,007 30,965.11 10,376.97 13,310 10,488 609,510 9. Groom Law Group 9,773.24 9,738 23,879 10,670.30 4,244.10 4,735 11,727 100,762 10. Nexant, Inc. 37,309.09 16,416 9,595 13,464.59 34,178.90 76,738 39,419 318,535 11. Greenhill & Co. -- 53,680 498,253 -- -- 52,500 -- 1,101,676 ------------ ----------- ----------- ----------- ----------- --------- ---------- - ---------- TOTAL PROFESSIONALS (MOR-1) $ 1,045,883 $ 1,257,449 $ 1,572,252 $ 1,014,508 $ 700,599 $1,019,131 $ 622,317 $9,957,583 ============ =========== =========== =========== =========== ========== ========== ==========
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. MOR-9 EX-99.3 5 h00019exv99w3.txt MONTHLY OPERATING RPT.-STERLING CHEMICALS ENERGY EXHIBIT 99.3 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS ENERGY, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37807-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2002
MONTH 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 (revised) (revised) - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 262,068 $ 192,124 $ 193,956 $ 185,170 $ 184,425 $ 212,365 $1,139,545 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 43,425 $ (61,716) $ 15,879 $ 69,703 $ 49,066 $ 50,511 76,424 NET INCOME (LOSS) (MOR-6) $ 38,020 $ (54,923) $ 14,278 $ 51,703 $ 46,732 $ 48,126 75,392 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- -- TOTAL DISBURSEMENTS (MOR-7)(1) $1,560,614 $1,604,507 $ 914,795 $1,353,466 $1,400,931 $1,315,008 $1,243,396 (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ------------------------------- CASUALTY YES (x) NO ( ) 08-01-02 LIABILITY YES (x) NO ( ) 07-01-02 VEHICLE YES (x) NO ( ) 07-01-02 WORKER'S YES (x) NO ( ) 07-01-02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ---------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ----------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ----------------------------------------------- MOR-1 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 14 9/19/02 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 9/19/02
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 AUGUST 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 $ 1,440 $ - $ 333 Trade accounts receivable, net - 67,625 86 2,774 Other Receivables - 476 - 2,711 Due from affiliates 1,375 26,378 13,702 - Inventories - 25,564 - 8,063 Prepaid expenses 33 4,912 - 36 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 126,395 13,788 13,917 Property, plant and equipment, net - 116,114 2,640 5,787 Deferred income taxes - - - - Investments-Third Party - 1,500 5,408 - Investments in Subs 35,060 94,735 - - Other assets 865 33,462 - 1,160 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,206 $ 21,836 $ 20,864 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 168,110 1,230 7,508 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 45,898 - 11,546 Secured - Other 410 Unsecured debt 186,538 260,294 1,110 71,062 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - - - - 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) - 7,908 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (62,204) 4,162 (12,221) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (513,043) 19,496 (142,242) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (515,580) 19,496 (142,242) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,206 $ 21,836 $ 20,864 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,107 1,036 5,288 Other Receivables - 4,410 - - Due from affiliates 3,551 59,725 888 10,092 Inventories - - 145 1,396 Prepaid expenses - - - - Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,551 66,242 2,069 16,776 Property, plant and equipment, net - - - 41,187 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,514 - Other assets 2,501 1,695 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 6,052 $ 363,748 $ 3,583 $ 57,963 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,567 1,109 2,605 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 737 13,550 - - 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 1,514 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (325) 625 (839) (10,017) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 454 (6,573) 2,304 (6,985) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 454 (6,573) 2,304 (6,985) TOTAL LIABILITIES AND EQUITY $ 6,052 $ 363,748 $ 3,583 $ 57,963 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,774 Trade accounts receivable, net - 78,916 Other Receivables - 7,597 Due from affiliates (114,980) 731 Inventories - 35,168 Prepaid expenses - 4,981 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (114,980) 129,167 Property, plant and equipment, net - 165,728 Deferred income taxes - - Investments-Third Party - 6,908 Investments in Subs (381,667) 45,453 Other assets (1) 39,682 -------------------------------- TOTAL ASSETS $(496,648) $ 386,938 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,172) 156,262 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (12,283) 59,448 Secured - Other 410 Unsecured debt (133,055) 714,637 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - - Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,244) (546,022) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (81,907) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,245) (863,554) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,245) (866,091) TOTAL LIABILITIES AND EQUITY $(496,648) $ 386,938 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
--------------------------------------------------------------------------------------- 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 --------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 754 $ 1,057 $ 1,493 $ 1,433 $ 1,364 $ 1,298 $ 1,230 ROYALTY AND REVENUE PAYABLE -- NOTES PAYABLE - INSURANCE -- TAX PAYABLE: -- Federal Payroll Taxes -- State Payroll & Sales -- Ad Valorem Taxes -- Other Taxes -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- SECURED DEBT POST-PETITION -- ACCRUED INTEREST PAYABLE -- *ACCRUED PROFESSIONAL FEES: -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- 2. Lease Operating Expenses/Capital -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 754 $ 1,057 $ 1,493 $ 1,433 $ 1,364 $ 1,298 $ 1,230 ==============================================================================================================================
*Payment Requires Court Approval. MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH AUGUST 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 63,810 $ 63,810 $ -- $ -- $ -- $ -- 31-60 831 831 -- -- -- -- 61-90 146 146 -- -- -- -- 91 + 28,898 28,898 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 93,685 $ 93,685 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 AUGUST 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) $ -- $ 44,301,404 $ 1,139,545 $ 1,528,346 TOTAL COST OF REVENUES -- 38,681,482 1,139,545 2,071,510 GROSS PROFIT $ -- $ 5,619,922 $ -- $ (543,164) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 995,228 $ -- $ 145,864 Insiders Compensation -- 112,872 -- -- Professional Fees -- 1,561,468 -- -- Other (Earnings in Joint Venture) -- 76,424 (76,424) -- TOTAL OPERATING EXPENSE $ -- $ 2,745,992 $ (76,424) $ 145,864 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ 2,873,930 $ 76,424 $ (689,028) INTEREST EXPENSE (includes amort of debt fees) -- 2,402,259 -- 614,434 DEPRECIATION -- 1,855,497 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,257,756 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ -- $ (1,383,826) $ 76,424 $ (1,351,033) INCOME TAXES -- -- 1,032 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ -- $ (1,383,826) $ 75,392 $ (1,351,033) ==================================================================================================================================== 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 $ 840,227 $ 559,868 TOTAL COST OF REVENUES -- 56,024 693,525 GROSS PROFIT $ 83,333 $ 784,203 $ (133,657) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 258,199 $ (87,100) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 258,199 $ (87,100) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 526,004 $ (46,557) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,539 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,334 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (120,330) $ (46,557) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (120,330) $ (46,557) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,686,476 $ (453,668) $ 51,685,531 TOTAL COST OF REVENUES 2,577,499 (453,668) 44,765,917 GROSS PROFIT $ 1,108,977 $ -- $ 6,919,614 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,862 $ (558,861) 1,379,192 Insiders Compensation -- -- 112,872 Professional Fees -- -- 1,561,468 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,862 $ (558,861) $ 3,053,532 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 483,115 $ 558,861 3,866,082 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,773,758 DEPRECIATION 326,244 -- 2,738,107 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,244 $ 558,861 $ 6,511,865 ================================================================================================================= NET INCOME BEFORE TAXES $ 156,871 $ -- $ (2,645,783) INCOME TAXES -- -- 1,032 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 156,871 $ -- $ (2,646,815) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11
CASH RECEIPTS AND FILING TO DISBURSEMENTS Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE - ----------------- --------- ---------- --------- --------- --------- -------- ---------- ---------- 1. CASH-BEGINNING OF MONTH 100 100 100 100 100 100 100 100 ========= ========== ========= ========= ========= ========= ========== ========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 69,040 67,945 67,591 72,867 87,682 73,641 67,412 936,130 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 1,491,574 1,536,562 847,203 1,280,599 1,313,248 1,241,366 1,175,984 19,457,511 --------- --------- --------- --------- --------- --------- ---------- ---------- TOTAL RECEIPTS 1,560,614 1,604,507 914,795 1,353,466 1,400,931 1,315,008 1,243,396 20,393,641 --------- --------- --------- --------- --------- --------- ---------- ---------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A ========= ========= ========= ========= ========= ========= ========== ========== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES 1,491,574 536,562 847,203 1,280,599 1,313,248 1,241,366 1,175,984 17,457,511 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) 69,040 1,067,945 67,591 72,867 87,682 73,641 67,412 2,936,130 --------- --------- --------- --------- --------- --------- ---------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,560,614 1,604,507 914,795 1,353,466 1,400,931 1,315,008 1,243,396 20,393,641 ========= ========= ========= ========= ========= ========= ========== ========== 19. PROFESSIONAL FEES -- -- -- -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- ---------- ---------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- ---------- ---------- TOTAL DISBURSEMENTS 1,560,614 1,604,507 914,795 1,353,434 1,400,931 1,315,008 1,243,396 20,393,641 ========= ========= ========= ========= ========= ========= ========== ========== 22. NET CASH FLOW -- -- -- -- -- -- -- -- 23. CASH - END OF MONTH (MOR-2) 100 100 100 100 100 100 100 100
MOR-7 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE ---------- ------------- ---------- --------- ---------- --------- ---------- ----------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- -- 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Dividend -- 1,000,000 -- -- -- -- -- 2,000,000 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Intercompany Funding 1,491,574 536,562 847,203 1,280,599 1,313,248 1,241,366 1,175,984 17,457,511 -- -- -- -- ---------- ------------- ---------- --------- ---------- --------- ---------- ----------- TOTAL OTHER RECEIPTS 1,491,574 1,536,562 847,203 1,280,599 1,313,248 1,241,366 1,175,984 19,457,511 ========== ============= ========== ========= ========== ========= ========== =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures -- -- -- -- -- -- -- -- Revenue & Royalties -- -- -- -- -- -- -- -- Interest Payment -- -- -- -- -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- -- -- -- -- Severance tax -- -- -- -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- -- -- -- -- Revolver payment to CIT 69,040 1,067,945 67,591 72,867 87,682 73,641 67,412 2,936,130 -- -- ---------- ------------- ---------- --------- ---------- --------- ---------- ----------- TOTAL OTHER DISBURSEMENTS 69,040 1,067,945 67,591 72,867 87,682 73,641 67,412 2,936,130 ========== ============= ========== ========= ========== ========= ========== ===========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 FOR THE PERIOD 8/01/02 - 8/31/02
CASH RECEIPTS AND Chase Chase DISBURSEMENTS 00103317203 00101818459 - ----------------- -------------- ----------- ------------ ----------- 1. CASH-BEGINNING OF MONTH -- 100 -- -- ============== =========== ============ =========== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- 67,412 4. LOANS & ADVANCES (attach list) -- -- 5. SALE OF ASSETS -- -- 6. OTHER (attach list) 1,175,984 -- -- -------------- ----------- ------------ ----------- TOTAL RECEIPTS 1,175,984 67,412 -- -- -------------- ----------- ------------ ----------- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A ============== =========== ============ =========== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- 8. PAYROLL TAXES PAID -- -- 9. SALES, USE & OTHER TAXES PAID -- -- 10. SECURED/RENTAL/LEASES -- -- 11. UTILITIES 1,175,984 -- 12. INSURANCE -- -- 13. INVENTORY PURCHASES -- -- 14. VEHICLE EXPENSES -- -- 15. TRAVEL & ENTERTAINMENT -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 17. ADMINISTRATIVE & SELLING -- -- 18. OTHER (attach list) -- 67,412 -------------- ----------- ------------ ----------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,175,984 67,412 -- -- ============== =========== ============ =========== 19. PROFESSIONAL FEES -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -------------- ----------- ------------ ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS 1,175,984 67,412 -- -- ============== =========== ============ =========== 22. NET CASH FLOW -- -- -- -- 23. CASH - END OF MONTH (MOR-2) -- 100 -- -- CASH RECEIPTS AND Total DISBURSEMENTS Debtor - ----------------- ------------ ----------- ------------- 1. CASH-BEGINNING OF MONTH -- -- 100 ============ =========== ============= RECEIPTS: 2. CASH SALES -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 67,412 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 1,175,984 ------------ ----------- ------------- TOTAL RECEIPTS -- -- 1,243,396 ------------ ----------- ------------- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A ============ =========== ============= DISBURSEMENTS: 7. NET PAYROLL -- -- -- 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID -- 10. SECURED/RENTAL/LEASES -- 11. UTILITIES 1,175,984 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING -- 18. OTHER (attach list) 67,412 ------------ ----------- ------------- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- 1,243,396 ============ =========== ============= 19. PROFESSIONAL FEES -- -- -- 20. U.S. TRUSTEE FEES -- -- -- ------------ ----------- ------------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- TOTAL DISBURSEMENTS -- -- 1,243,396 ============ =========== ============= 22. NET CASH FLOW -- -- -- 23. CASH - END OF MONTH (MOR-2) -- -- 100
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 FOR THE PERIOD 8/01/02 - 8/31/02
OTHER CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS: 00103317203 00101818459 Debtor - -------------- ------------ ------------ ------------ 6. OTHER RECEIPTS: Interest Income -- -- -- 401(k) Plan Refund -- -- -- Cobra Insurance Payment -- -- -- Dividend -- -- -- Royalty Owners Trust Account -- -- Emission Credits -- -- -- Intercompany Transfer 1,175,984 -- 1,175,984 ------------ --------- ------------ TOTAL OTHER RECEIPTS 1,175,984 -- 1,175,984 ============ ========= ============ 18. OTHER DISBURSEMENTS: Lease Operating Expenses -- Workover Expense -- Capital Expenditures -- -- -- Revenue & Royalties -- Interest Payment -- -- -- Restricted Cash - Bond Funding -- -- -- Severance tax -- Pre-petition checks voided in current period -- -- -- CIT Revolver Payments -- 67,412 67,412 ------------ --------- ------------ TOTAL OTHER DISBURSEMENTS -- 67,412 67,412 ============ ========= ============
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 CASH ACCOUNT RECONCILIATION MONTH OF AUGUST 2002
BANK NAME Chase Bk of TX Chase Bk of TX ACCOUNT NUMBER 00103317203 00101818459 ACCOUNT TYPE Concentration Concentration TOTAL - -------------- ---------------- --------------- ----------- BANK BALANCE $ -- $ 100 $ 100 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER -- ---------------- --------------- ----------- ADJUSTED BANK BALANCE $ -- $ 100 $ 100 ================ =============== =========== BEGINNING CASH - PER BOOKS $ -- $ 100 $ 100 RECEIPTS 67,412 67,412 TRANSFERS BETWEEN ACCOUNTS 1,175,984 1,175,984 (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (1,175,984) (67,412) (1,243,396) ---------------- --------------- ----------- ENDING CASH - PER BOOKS $ -- $ 100 $ 100 ================ =============== ===========
MOR-8 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE(2) Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 DATE - ----------------------------------- -------- -------- -------- -------- -------- -------- --------- -------- 1 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2 -- -- -- -- -- -- -- -- 3 -- -- -- -- -- -- -- -- 4 -- -- -- -- -- -- -- -- 5 -- -- -- -- -- -- -- -- 6 -- -- -- -- -- -- -- -- 7 -- -- -- -- -- -- -- -- 8 -- -- -- -- -- -- -- -- 9 -- -- -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- --------- -------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ======== ========= ========
PROFESSIONALS FILING TO NAME/ORDER DATE Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 DATE --------------- -------- -------- -------- -------- -------- -------- --------- -------- 1 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2 -- -- -- -- -- -- -- -- 3 -- -- -- -- -- -- -- -- 4 -- -- -- -- -- -- -- -- 5 -- -- -- -- -- -- -- -- 6 -- -- -- -- -- -- -- -- -------- -------- -------- -------- -------- ------- --------- -------- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ======= ========= ========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES ; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.4 6 h00019exv99w4.txt MONTHLY OPERATING RPT.-STERLING FIBERS, INC. EXHIBIT 99.4 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING FIBERS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37808-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2002
MONTH 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 Revised Revised Revised - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 1,141,971 $ 1,554,279 $1,707,430 $1,769,204 $ 1,693,508 $ 1,861,900 $ 1,528,346 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (604,191) $ (421,580) $ (127,852) $ (180,394) $ (511,621) $ (513,676) $ (689,028) NET INCOME (LOSS) (MOR-6) $(1,266,289) $(1,083,585) $ (789,902) $ (842,445) $(1,173,671) $(1,175,772) $(1,351,033) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ 2,573,236 $ 2,738,115 $3,182,878 $2,867,783 $ 2,703,564 $ 3,117,479 $ 2,784,317 (1) Excludes intercompany transfers as follows: $ 200,000 $ 210,000 $ 230,000 $ 205,000 $ 190,000 $ 325,000 $ 205,000
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ----------------------------- ---- CASUALTY YES (x) NO ( ) 08 - 01 - 02 LIABILITY YES (x) NO ( ) 07 - 01 - 02 VEHICLE YES (x) NO ( ) 07 - 01 - 02 WORKER'S YES (x) NO ( ) 07 - 01 - 02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ---------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ---------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ---------------------------------------------- MOR-1 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 14 9/19/02 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 9/19/02
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 AUGUST 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 $ 1,440 $ - $ 333 Trade accounts receivable, net - 67,625 86 2,774 Other Receivables - 476 - 2,711 Due from affiliates 1,375 26,378 13,702 - Inventories - 25,564 - 8,063 Prepaid expenses 33 4,912 - 36 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 126,395 13,788 13,917 Property, plant and equipment, net - 116,114 2,640 5,787 Deferred income taxes - - - - Investments-Third Party - 1,500 5,408 - Investments in Subs 35,060 94,735 - - Other assets 865 33,462 - 1,160 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,206 $ 21,836 $ 20,864 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 168,110 1,230 7,508 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 45,898 - 11,546 Secured - Other 410 Unsecured debt 186,538 260,294 1,110 71,062 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - - - - 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) - 7,908 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (62,204) 4,162 (12,221) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (513,043) 19,496 (142,242) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (515,580) 19,496 (142,242) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,206 $ 21,836 $ 20,864 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,107 1,036 5,288 Other Receivables - 4,410 - - Due from affiliates 3,551 59,725 888 10,092 Inventories - - 145 1,396 Prepaid expenses - - - - Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,551 66,242 2,069 16,776 Property, plant and equipment, net - - - 41,187 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,514 - Other assets 2,501 1,695 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 6,052 $ 363,748 $ 3,583 $ 57,963 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,567 1,109 2,605 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 737 13,550 - - 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 1,514 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (325) 625 (839) (10,017) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 454 (6,573) 2,304 (6,985) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 454 (6,573) 2,304 (6,985) TOTAL LIABILITIES AND EQUITY $ 6,052 $ 363,748 $ 3,583 $ 57,963 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,774 Trade accounts receivable, net - 78,916 Other Receivables - 7,597 Due from affiliates (114,980) 731 Inventories - 35,168 Prepaid expenses - 4,981 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (114,980) 129,167 Property, plant and equipment, net - 165,728 Deferred income taxes - - Investments-Third Party - 6,908 Investments in Subs (381,667) 45,453 Other assets (1) 39,682 -------------------------------- TOTAL ASSETS $(496,648) $ 386,938 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,172) 156,262 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (12,283) 59,448 Secured - Other 410 Unsecured debt (133,055) 714,637 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - - Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,244) (546,022) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (81,907) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,245) (863,554) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,245) (866,091) TOTAL LIABILITIES AND EQUITY $(496,648) $ 386,938 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
-------------------------------------------------------------------------------------------- 1/31/02 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/01 8/31/02 -------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 5,479 $ 5,821 $ 6,096 $ 6,168 $ 6,443 $ 6,794 $ 6,905 $ 7,167 ROYALTY AND REVENUE PAYABLE -- -- -- NOTES PAYABLE - INSURANCE -- -- -- TAX PAYABLE: -- Federal Payroll Taxes -- -- -- State Payroll & Sales (3) -- (1) (1) (2) (3) (4) (4) Ad Valorem Taxes -- -- -- -- Other Taxes 162 232 220 245 270 295 320 345 TOTAL TAXES PAYABLE $ 159 $ 232 $ 219 $ 244 $ 268 $ 292 $ 316 341 SECURED DEBT POST-PETITION -- -- -- -- ACCRUED INTEREST PAYABLE -- -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- -- -- -- 2. Lease Operating Expenses/Capital -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3)$ 5,638 $ 6,053 $ 6,315 $ 6,412 $ 6,711 $ 7,086 $ 7,221 $ 7,508 ===================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH AUGUST 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 63,810 $ 63,810 $ -- $ -- $ -- $ -- 31-60 831 831 -- -- -- -- 61-90 146 146 -- -- -- -- 91 + 28,898 28,898 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 93,685 $ 93,685 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 AUGUST 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) $ -- $ 44,301,404 $ 1,139,545 $ 1,528,346 TOTAL COST OF REVENUES -- 38,681,482 1,139,545 2,071,510 GROSS PROFIT $ -- $ 5,619,922 $ -- $ (543,164) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 995,228 $ -- $ 145,864 Insiders Compensation -- 112,872 -- -- Professional Fees -- 1,561,468 -- -- Other (Earnings in Joint Venture) -- 76,424 (76,424) -- TOTAL OPERATING EXPENSE $ -- $ 2,745,992 $ (76,424) $ 145,864 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ 2,873,930 $ 76,424 $ (689,028) INTEREST EXPENSE (includes amort of debt fees) -- 2,402,259 -- 614,434 DEPRECIATION -- 1,855,497 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,257,756 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ -- $ (1,383,826) $ 76,424 $ (1,351,033) INCOME TAXES -- -- 1,032 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ -- $ (1,383,826) $ 75,392 $ (1,351,033) ==================================================================================================================================== 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 $ 840,227 $ 559,868 TOTAL COST OF REVENUES -- 56,024 693,525 GROSS PROFIT $ 83,333 $ 784,203 $ (133,657) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 258,199 $ (87,100) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 258,199 $ (87,100) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 526,004 $ (46,557) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,539 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,334 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (120,330) $ (46,557) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (120,330) $ (46,557) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,686,476 $ (453,668) $ 51,685,531 TOTAL COST OF REVENUES 2,577,499 (453,668) 44,765,917 GROSS PROFIT $ 1,108,977 $ -- $ 6,919,614 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,862 $ (558,861) 1,379,192 Insiders Compensation -- -- 112,872 Professional Fees -- -- 1,561,468 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,862 $ (558,861) $ 3,053,532 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 483,115 $ 558,861 3,866,082 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,773,758 DEPRECIATION 326,244 -- 2,738,107 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,244 $ 558,861 $ 6,511,865 ================================================================================================================= NET INCOME BEFORE TAXES $ 156,871 $ -- $ (2,645,783) INCOME TAXES -- -- 1,032 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 156,871 $ -- $ (2,646,815) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11
CASH RECEIPTS AND DISBURSEMENTS Feb-02 Mar-02 Apr-02 - ----------------- ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 123,772 $ 165,556 $ 167,642 ------------ ------------ ------------ RECEIPTS: 2. CASH SALES $ -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,349,186 1,657,321 1,655,125 4. LOANS & ADVANCES (attach list) -- -- -- 5. SALE OF ASSETS -- -- -- 6. OTHER (attach list) 1,465,834 1,292,880 1,741,879 TOTAL RECEIPTS $ 2,815,019 $ 2,950,201 $ 3,397,004 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 142,024 $ 157,720 $ 184,218 8. PAYROLL TAXES PAID 61,762 66,433 71,168 9. SALES, USE & OTHER TAXES PAID 567 4,742 3,914 10. SECURED/RENTAL/LEASES -- -- -- 11. UTILITIES 192,360 254,704 223,466 12. INSURANCE -- -- -- 13. INVENTORY PURCHASES 151,616 73,403 192,570 14. VEHICLE EXPENSES -- -- -- 15. TRAVEL & ENTERTAINMENT 6,593 5,975 -- 16. REPAIRS, MAINTENANCE & SUPPLIES 55,567 39,635 48,832 17. ADMINISTRATIVE & SELLING -- 2,710 2,775 18. OTHER (attach list) 2,162,748 2,345,504 2,685,999 TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,773,236 $ 2,948,115 $ 3,412,878 19. PROFESSIONAL FEES $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- TOTAL DISBURSEMENTS $ 2,773,236 $ 2,948,115 $ 3,412,878 22. NET CASH FLOW $ 41,783 $ 2,086 $ (15,874) 23. CASH - END OF MONTH (MOR-2) $ 165,556 $ 167,642 $ 151,768 CASH RECEIPTS AND FILING TO DISBURSEMENTS May-02 Jun-02 Jul-02 Aug-02 DATE - ----------------- ------------ ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 151,768 $ 155,565 $ 120,211 $ 138,799 $ 714,483 ------------ ------------ ------------ ------------ ------------ RECEIPTS: 2. CASH SALES $ -- $ -- $ -- -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,652,762 1,514,756 1,840,100 $ 1,676,623 25,471,296 4. LOANS & ADVANCES (attach list) -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- 6. OTHER (attach list) 1,423,818 1,343,454 1,620,968 1,506,670 18,794,380 TOTAL RECEIPTS $ 3,076,580 $ 2,858,210 $ 3,461,068 $ 3,183,293 $ 44,265,676 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 146,485 $ 144,066 $ 211,714 $ 147,781 $ 2,432,034 8. PAYROLL TAXES PAID 56,463 56,059 62,035 85,461 963,800 9. SALES, USE & OTHER TAXES PAID 1,958 2,976 1,618 759 22,829 10. SECURED/RENTAL/LEASES -- -- -- -- 4,486 11. UTILITIES 193,003 153,563 169,922 227,707 2,556,820 12. INSURANCE -- -- -- $ -- 280,148 13. INVENTORY PURCHASES 224,244 149,137 178,957 133,635 1,862,322 14. VEHICLE EXPENSES -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT 6,019 3,207 2,903 1,474 63,313 16. REPAIRS, MAINTENANCE & SUPPLIES 88,852 67,749 54,578 69,027 799,953 17. ADMINISTRATIVE & SELLING 2,775 -- -- -- 15,521 18. OTHER (attach list) 2,352,984 2,316,805 2,760,752 2,323,473 35,646,155 TOTAL DISBURSEMENTS FROM OPERATIONS $ 3,072,783 $ 2,893,564 $ 3,442,479 $ 2,989,317 $ 44,647,382 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES -- -- (attach list) -- -- -- -- -- TOTAL DISBURSEMENTS $ 3,072,783 $ 2,893,564 $ 3,442,479 $ 2,989,317 $ 44,647,382 22. NET CASH FLOW $ 3,797 $ (35,353) $ 18,589) $ 193,976 $ (381,706) 23. CASH - END OF MONTH (MOR-2) $ 155,565 $ 120,211 $ 138,800 $ 332,776 $ 332,777
MOR-7 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: Feb-02 Mar-02 ----------------------- ---------- ---------- 6. OTHER RECEIPTS: Interest Income $ -- 401(k) Plan Refund -- Cobra Insurance Payment 4,834 -- Miscellaneous 1,880 Royalty Owners Trust Account -- Emission Credits -- Intercompany Transfers 1,461,000 1,291,000 Account Transfers -- TOTAL OTHER RECEIPTS $1,465,834 $1,292,880 18. OTHER DISBURSEMENTS: Lease Operating Expense -- $ -- Workover Expense -- -- Capital Expenditures -- -- Revenue & Royalties -- -- Interest Payment -- -- Employee Benefits 27,296 41,037 Severance tax -- -- Pre-petition checks voided in current period -- -- Insiders -- -- Restricted Cash Transactions -- -- Contract Services 463,768 502,800 Licenses / Fees / Permits 2,190 1,000 Freight 56,410 74,185 Account Transfers 200,000 210,000 Outstanding checks to Balance to G/L 104,132 (125,520) CIT Revolver Payments 1,308,951 1,642,003 TOTAL OTHER DISBURSEMENTS $2,162,748 $2,345,504
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE ----------------------- ------------- ---------- ---------- ---------- ---------- ----------- 6. OTHER RECEIPTS: Interest Income $ 13,960.67 $ -- -- $ -- -- $ 14,505 401(k) Plan Refund -- -- -- -- -- -- Cobra Insurance Payment 3,398 2,886 2,640 4,426 2,670 47,694 Miscellaneous 70,520 8,931 15,814 5,542 -- 271,781 Royalty Owners Trust Account -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- Intercompany Transfers 1,424,000 1,412,000 1,324,000 1,286,000 1,504,000 17,194,400 Account Transfers 230,000 -- -- 325,000 -- 1,265,000 TOTAL OTHER RECEIPTS $ 1,741,879 $1,423,818 $1,342,454 $1,620,968 $1,506,670 $18,793,380 18. OTHER DISBURSEMENTS: Lease Operating Expense $ -- $ -- -- -- -- $ -- Workover Expense -- -- -- -- -- -- Capital Expenditures -- -- -- -- -- 17,812 Revenue & Royalties -- -- -- -- -- 10,150 Interest Payment -- -- -- -- -- -- Employee Benefits 27,032 26,130 25,870 25,249 38,064 387,529 Severance tax -- -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- -- (5,215) Insiders -- -- -- -- -- -- Restricted Cash Transactions -- -- -- -- -- -- Contract Services 434,528 554,635 429,682 377,737 550,603 2,687,610 Licenses / Fees / Permits 25 14,615 10,257 82 -- 36,051 Freight 67,647 83,977 79,432 70,833 101,453 511,018 Account Transfers 230,000 205,000 190,000 325,000 205,000 1,103,386 Outstanding checks to Balance to G/L 195,350 (193,585) 23,441 78,719 (28,417) (313,366) CIT Revolver Payments 1,734,416 1,662,211 1,558,123 1,883,133 1,456,770 14,473,592 TOTAL OTHER DISBURSEMENTS $ 2,688,999 $2,352,984 $2,316,805 $2,760,753 $2,323,473 $18,908,568
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 AUGUST 2002
CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS 00100547117 00103316965 103405768 630181003508 ----------------- ----------- ------------- ----------- ------------- 1. CASH-BEGINNING OF MONTH $ 100.00 $ 472.47 $ 54,050.41 $ 0.00 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 $ 0.00 $ 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 377,855.51 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 0.00 1,299,000.00 205,000.00 0.00 TOTAL RECEIPTS $377,855.51 $1,299,000.00 $205,000.00 $ 0.00 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ $147,781.18 $ 8. PAYROLL TAXES PAID 85,460.76 9. SALES, USE & OTHER TAXES PAID 758.86 10. SECURED/RENTAL/LEASES 11. UTILITIES 227,707.39 12. INSURANCE 13. INVENTORY PURCHASES 133,635.08 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 1,474.34 16. REPAIRS, MAINTENANCE & SUPPLIES 69,026.60 17. ADMINISTRATIVE & SELLING 18. OTHER (attach list) 325,541.00 866,702.55 0.00 0.00 TOTAL DISBURSEMENTS FROM OPERATIONS $325,541.00 $1,299,304.82 $233,241.94 $ 0.00 19. PROFESSIONAL FEES $ 0.00 $ 0.00 $ 0.00 $ 0.00 20. U.S. TRUSTEE FEES 0.00 0.00 0.00 0.00 21. OTHER REORGANIZATION EXPENSES (attach list) 0.00 0.00 0.00 0.00 TOTAL DISBURSEMENTS $325,541.00 $1,299,304.82 $233,241.94 $ 0.00 22. NET CASH FLOW $ 52,314.51 $ -304.82 $-28,241.94 $ 0.00 23. CASH - END OF MONTH (MOR-2) $ 52,414.51 $ 167.65 $ 25,808.47 $ 0.00 CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS 5577659 1171987307 DATE ----------------- ------------- --------------- ------------- 1. CASH-BEGINNING OF MONTH $ 2,008.00 $ 82,168.30 138,799.18 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,298,767.54 1,676,623.05 4. LOANS & ADVANCES (attach list) 0.00 5. SALE OF ASSETS 0.00 6. OTHER (attach list) 2,670.10 0.00 1,506,670.10 TOTAL RECEIPTS $1,301,437.64 $ 0.00 3,183,293.15 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ 147,781.18 8. PAYROLL TAXES PAID 85,460.76 9. SALES, USE & OTHER TAXES PAID 758.86 10. SECURED/RENTAL/LEASES 0.00 11. UTILITIES 227,707.39 12. INSURANCE 0.00 13. INVENTORY PURCHASES 133,635.08 14. VEHICLE EXPENSES 0.00 15. TRAVEL & ENTERTAINMENT 1,474.34 16. REPAIRS, MAINTENANCE & SUPPLIES 69,026.60 17. ADMINISTRATIVE & SELLING 0.00 18. OTHER (attach list) 1,131,229.06 0.00 2,323,472.61 TOTAL DISBURSEMENTS FROM OPERATIONS $1,131,229.06 $ 0.00 2,989,316.82 19. PROFESSIONAL FEES $ 0.00 $ 0.00 0.00 20. U.S. TRUSTEE FEES 0.00 0.00 0.00 21. OTHER REORGANIZATION EXPENSES (attach list) 0.00 0.00 0.00 TOTAL DISBURSEMENTS $1,131,229.06 $ 0.00 2,989,316.82 22. NET CASH FLOW $ 170,208.58 $ 0.00 193,976.33 23. CASH - END OF MONTH (MOR-2) $ 172,216.58 $ 82,168.30 332,775.51
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 AUGUST 2002
OTHER CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS: 00100547117 00103316965 103405768 630181003508 ----------------------- ----------- ----------- ----------- -------------- 6. OTHER RECEIPTS: Interest Income 401(k) Plan Refund Cobra Insurance Payment Miscellaneous Royalty Owners Trust Account Emission Credits Intercompany Transfers 1,299,000.00 205,000.00 Account Transfers TOTAL OTHER RECEIPTS $ 0.00 $1,299,000.00 $ 205,000.00 $ 0.00 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures Revenue & Royalties Interest Payment Employee Benefits 38,064.02 Severance tax Pre-petition checks voided in current period Insiders Restricted Cash Transactions Contract Services 550,602.57 Licenses / Fees / Permits Freight 101,453.33 Account Transfers 205,000.00 Outstanding checks to Balance to G/L -28,417.37 CIT Revolver Payments 325,541.00 TOTAL OTHER DISBURSEMENTS $325,541.00 $ 866,702.55 $ 0.00 $ 0.00 OTHER CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS: 5577659 1171987307 DATE ----------------------- ---------------------------------------------------- 6. OTHER RECEIPTS:$ 13 Interest Income $ 0.00 401(k) Plan Refund 0.00 Cobra Insurance Payment 2,670.10 2,670.10 Miscellaneous 0.00 Royalty Owners Trust Account 0.00 Emission Credits 0.00 Intercompany Transfers 1,504,000.00 Account Transfers 0.00 0.00 0.00 TOTAL OTHER RECEIPTS $ 2,670.10 $ 0.00 $1,506,670.10 18. OTHER DISBURSEMENTS: Lease Operating Expense $ 0.00 Workover Expense 0.00 Capital Expenditures 0.00 Revenue & Royalties 0.00 Interest Payment 0.00 Employee Benefits 38,064.02 Severance tax 0.00 Pre-petition checks voided in current period 0.00 Insiders 0.00 Restricted Cash Transactions 0.00 Contract Services 550,602.57 Licenses / Fees / Permits 0.00 Freight 101,453.33 Account Transfers 205,000.00 Outstanding checks to Balance to G/L -28,417.37 CIT Revolver Payments $1,131,229.06 1,456,770.06 TOTAL OTHER DISBURSEMENTS $1,131,229.06 $ 0.00 $2,323,472.61
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H-11 CASH ACCOUNT RECONCILIATION MONTH OF AUGUST 2002
BANK NAME Chase Bk of TX Bank One Bank of America Chase Bk of TX Chase Bk of TX Chase Bk of Del ACCOUNT NUMBER 00103316965 5577659 0011 7198 7307 00103405768 00100547117 630181003508 ACCOUNT TYPE AP Trade Lockbox Petty Cash Payroll AR Wires Contr. Disb. - -------------- -------------- ------------ ---------------- -------------- --------------- --------------- BANK BALANCE $ 168 $ 172,217 $ 82,168 $ 25,808 $ 52,415 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 168 $ 172,217 $ 82,168 $ 25,808 $ 52,415 $ -- ================================================================================================================================= BEGINNING CASH - PER BOOKS $ 472 $ 2,008 $ 82,168 $ 54,050 $ 100 $ -- RECEIPTS 1,301,438 -- 377,856 TRANSFERS BETWEEN ACCOUNTS 1,094,000 -- 205,000 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (1,094,305) (1,131,229) (233,242) (325,541) ENDING CASH - PER BOOKS $ 168 $ 172,217 $ 82,168 $ 25,808 $ 52,415 $ -- ================================================================================================================================= BANK NAME ACCOUNT NUMBER ACCOUNT TYPE TOTAL - -------------- ----------- BANK BALANCE $ 332,776 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 332,776 =========================================== BEGINNING CASH - PER BOOKS $ 138,799 RECEIPTS 1,679,293 TRANSFERS BETWEEN ACCOUNTS 1,299,000 (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (2,784,317) ENDING CASH - PER BOOKS $ 332,776 ===========================================
MOR-8 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 DATE - ------------------------------------- -------- -------- --------- -------- -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 DATE --------------- -------- --------- --------- -------- -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES ; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.5 7 h00019exv99w5.txt MONTHLY OPERATING RPT.-STERLING CHEMICALS INT'L. EXHIBIT 99.5 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37809-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: JULY YEAR: 2002
7/31/02 MONTH 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 (revised) 8/31/02 - -------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 81,888 $ 79,933 $ 77,397 $ 67,212 $ 83,333 $ 72,681 $ 83,333 NET INCOME (LOSS) (MOR-6) $ 21,223 $ 19,268 $ 16,732 $ 6,547 $ 22,668 $ 12,016 $ 22,668 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ----------------------------- CASUALTY YES (x) NO ( ) 08-01-02 LIABILITY YES (x) NO ( ) 07-01-02 VEHICLE YES (x) NO ( ) 07-01-02 WORKER'S YES (x) NO ( ) 07-01-02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ----------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ------------------------------------------- MOR-1 CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 12 9/19/02 SUMMARY OF COVERAGES FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 Number of vehicles Ded. $25,000 per occurrence. Zurich Amer. owned and leased 3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/03 Annual revenues and Excess to $1 Million SIR aggregate. Excess $1,000,000 GL remuneration $2,000,000 AL. 4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 Based on volume Operators Liability and Ded. $25,000 per occurrence Co. thru Marsh throughput and no. Charterer's Legal $100,000 pollution London chartered vessels. Liability per occurrence. 11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 7/1/03 Volume thru put & P&L Brockbank & vessels docked. Liberty Und. 12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 12 9/19/02
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 AUGUST 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 $ 1,440 $ - $ 333 Trade accounts receivable, net - 67,625 86 2,774 Other Receivables - 476 - 2,711 Due from affiliates 1,375 26,378 13,702 - Inventories - 25,564 - 8,063 Prepaid expenses 33 4,912 - 36 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 126,395 13,788 13,917 Property, plant and equipment, net - 116,114 2,640 5,787 Deferred income taxes - - - - Investments-Third Party - 1,500 5,408 - Investments in Subs 35,060 94,735 - - Other assets 865 33,462 - 1,160 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,206 $ 21,836 $ 20,864 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 168,110 1,230 7,508 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 45,898 - 11,546 Secured - Other 410 Unsecured debt 186,538 260,294 1,110 71,062 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - - - - 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) - 7,908 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (62,204) 4,162 (12,221) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (513,043) 19,496 (142,242) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (515,580) 19,496 (142,242) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,206 $ 21,836 $ 20,864 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,107 1,036 5,288 Other Receivables - 4,410 - - Due from affiliates 3,551 59,725 888 10,092 Inventories - - 145 1,396 Prepaid expenses - - - - Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,551 66,242 2,069 16,776 Property, plant and equipment, net - - - 41,187 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,514 - Other assets 2,501 1,695 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 6,052 $ 363,748 $ 3,583 $ 57,963 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,567 1,109 2,605 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 737 13,550 - - 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 1,514 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (325) 625 (839) (10,017) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 454 (6,573) 2,304 (6,985) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 454 (6,573) 2,304 (6,985) TOTAL LIABILITIES AND EQUITY $ 6,052 $ 363,748 $ 3,583 $ 57,963 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,774 Trade accounts receivable, net - 78,916 Other Receivables - 7,597 Due from affiliates (114,980) 731 Inventories - 35,168 Prepaid expenses - 4,981 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (114,980) 129,167 Property, plant and equipment, net - 165,728 Deferred income taxes - - Investments-Third Party - 6,908 Investments in Subs (381,667) 45,453 Other assets (1) 39,682 -------------------------------- TOTAL ASSETS $(496,648) $ 386,938 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,172) 156,262 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (12,283) 59,448 Secured - Other 410 Unsecured debt (133,055) 714,637 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - - Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,244) (546,022) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (81,907) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,245) (863,554) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,245) (866,091) TOTAL LIABILITIES AND EQUITY $(496,648) $ 386,938 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
------------------------------------------------------------------------------ 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 (revised) (revised) ------------------------------------------------------------------------------ TRADE ACCOUNTS PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- ROYALTY AND REVENUE PAYABLE NOTES PAYABLE TAX PAYABLE: Federal Payroll Taxes State Payroll & Sales Ad Valorem Taxes Other Taxes TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- SECURED DEBT POST-PETITION ACCRUED INTEREST PAYABLE *ACCRUED PROFESSIONAL FEES: OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 2. Lease Operating Expenses/Capital TOTAL POST-PETITION LIABILITIES (MOR-3) $ --- $ -- $ -- $ -- $ -- $ -- $ -- ======================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH AUGUST 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 63,810 $ 63,810 $ -- $ -- $ -- $ -- 31-60 831 831 -- -- -- -- 61-90 146 146 -- -- -- -- 91 + 28,898 28,898 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 93,685 $ 93,685 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 AUGUST 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) $ -- $ 44,301,404 $ 1,139,545 $ 1,528,346 TOTAL COST OF REVENUES -- 38,681,482 1,139,545 2,071,510 GROSS PROFIT $ -- $ 5,619,922 $ -- $ (543,164) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 995,228 $ -- $ 145,864 Insiders Compensation -- 112,872 -- -- Professional Fees -- 1,561,468 -- -- Other (Earnings in Joint Venture) -- 76,424 (76,424) -- TOTAL OPERATING EXPENSE $ -- $ 2,745,992 $ (76,424) $ 145,864 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ 2,873,930 $ 76,424 $ (689,028) INTEREST EXPENSE (includes amort of debt fees) -- 2,402,259 -- 614,434 DEPRECIATION -- 1,855,497 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,257,756 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ -- $ (1,383,826) $ 76,424 $ (1,351,033) INCOME TAXES -- -- 1,032 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ -- $ (1,383,826) $ 75,392 $ (1,351,033) ==================================================================================================================================== 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 $ 840,227 $ 559,868 TOTAL COST OF REVENUES -- 56,024 693,525 GROSS PROFIT $ 83,333 $ 784,203 $ (133,657) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 258,199 $ (87,100) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 258,199 $ (87,100) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 526,004 $ (46,557) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,539 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,334 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (120,330) $ (46,557) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (120,330) $ (46,557) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,686,476 $ (453,668) $ 51,685,531 TOTAL COST OF REVENUES 2,577,499 (453,668) 44,765,917 GROSS PROFIT $ 1,108,977 $ -- $ 6,919,614 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,862 $ (558,861) 1,379,192 Insiders Compensation -- -- 112,872 Professional Fees -- -- 1,561,468 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,862 $ (558,861) $ 3,053,532 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 483,115 $ 558,861 3,866,082 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,773,758 DEPRECIATION 326,244 -- 2,738,107 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,244 $ 558,861 $ 6,511,865 ================================================================================================================= NET INCOME BEFORE TAXES $ 156,871 $ -- $ (2,645,783) INCOME TAXES -- -- 1,032 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 156,871 $ -- $ (2,646,815) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H-11 Chase Bank of Texas - #00100551903
CASH RECEIPTS AND FILING TO DISBURSEMENTS Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE - ----------------- --------- --------- --------- --------- ---------- --------- --------- ---------- 1. CASH-BEGINNING OF MONTH -- -- -- -- -- -- -- -- RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- -- -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) -- -- -- -- -- -- -- -- TOTAL RECEIPTS -- -- -- -- -- -- -- -- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/ A N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES -- -- -- -- -- -- -- -- 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) -- -- -- -- -- -- -- -- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- -- -- -- -- 19. PROFESSIONAL FEES -- -- -- -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- TOTAL DISBURSEMENTS -- -- -- -- -- -- -- -- 22. NET CASH FLOW -- -- -- -- -- -- -- -- 23. CASH - END OF MONTH (MOR-2) -- -- -- -- -- -- -- --
MOR-7 CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H-11 Chase Bank of Texas - #00100551903
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE ----------------------- -------- -------- --------- ---------- ---------- ---------- ---------- --------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- 401(k) Plan Refund -- -- -- -- Cobra Insurance Payment -- -- -- -- Miscellaneous -- -- -- -- Royalty Owners Trust Account Emission Credits -- -- -- -- TOTAL OTHER RECEIPTS -- -- -- -- 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures -- -- -- -- Revenue & Royalties Interest Payment -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- Severance Tax Pre-petition checks voided in current period -- -- -- -- TOTAL OTHER DISBURSEMENTS -- -- -- --
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals International, Inc. CASE NUMBER: 01-37809-H-11 CASH ACCOUNT RECONCILIATION MONTH OF AUGUST 2002
BANK NAME Chase Bk of TX ACCOUNT NUMBER 00100551903 ACCOUNT TYPE Concentration TOTAL - ------------ -------------- ----- BANK BALANCE $ -- DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- BEGINNING CASH - PER BOOKS $ -- RECEIPTS -- TRANSFERS BETWEEN ACCOUNTS -- (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS -- ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
MOR-8 CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-02 Jul-2002 Aug-2002 DATE ------------------------------------- -------- -------- ------------ -------- -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-02 Jul-2002 Aug-2002 DATE --------------- ---------- -------- -------- ---------- ---------- ---------- ---------- ----------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.6 8 h00019exv99w6.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: AUGUST YEAR: 2002
2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 MONTH Revised Revised - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $1,059,266 $ 1,087,139 $ 1,076,963 $ 1,059,266 $ 617,525 $ 938,666 $ 840,227 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 781,134 $ 786,914 $ 765,999 $ 750,049 $ 326,174 $ 610,556 $ 526,004 NET INCOME (LOSS) (MOR-6) $ 80,692 $ 140,569 $ 101,602 $ 103,679 $ (338,175) $ (35,773) $ (120,330) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $1,041,816 $ 298,056 $ 1,479,491 $ 1,387,906 $ 186,246 $1,019,169 $1,293,634 (1) Excludes intercompany transfers as follows: $ -- $ 981,639 $ 647,602 $ -- $1,102,126 $ 746,935 $ 558,861
***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 9/19/02 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 9/19/02
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 AUGUST 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 $ 1,440 $ - $ 333 Trade accounts receivable, net - 67,625 86 2,774 Other Receivables - 476 - 2,711 Due from affiliates 1,375 26,378 13,702 - Inventories - 25,564 - 8,063 Prepaid expenses 33 4,912 - 36 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 126,395 13,788 13,917 Property, plant and equipment, net - 116,114 2,640 5,787 Deferred income taxes - - - - Investments-Third Party - 1,500 5,408 - Investments in Subs 35,060 94,735 - - Other assets 865 33,462 - 1,160 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,206 $ 21,836 $ 20,864 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 168,110 1,230 7,508 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 45,898 - 11,546 Secured - Other 410 Unsecured debt 186,538 260,294 1,110 71,062 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - - - - 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) - 7,908 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (62,204) 4,162 (12,221) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (513,043) 19,496 (142,242) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (515,580) 19,496 (142,242) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,206 $ 21,836 $ 20,864 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,107 1,036 5,288 Other Receivables - 4,410 - - Due from affiliates 3,551 59,725 888 10,092 Inventories - - 145 1,396 Prepaid expenses - - - - Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,551 66,242 2,069 16,776 Property, plant and equipment, net - - - 41,187 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,514 - Other assets 2,501 1,695 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 6,052 $ 363,748 $ 3,583 $ 57,963 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,567 1,109 2,605 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 737 13,550 - - 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 1,514 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (325) 625 (839) (10,017) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 454 (6,573) 2,304 (6,985) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 454 (6,573) 2,304 (6,985) TOTAL LIABILITIES AND EQUITY $ 6,052 $ 363,748 $ 3,583 $ 57,963 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,774 Trade accounts receivable, net - 78,916 Other Receivables - 7,597 Due from affiliates (114,980) 731 Inventories - 35,168 Prepaid expenses - 4,981 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (114,980) 129,167 Property, plant and equipment, net - 165,728 Deferred income taxes - - Investments-Third Party - 6,908 Investments in Subs (381,667) 45,453 Other assets (1) 39,682 -------------------------------- TOTAL ASSETS $(496,648) $ 386,938 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,172) 156,262 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (12,283) 59,448 Secured - Other 410 Unsecured debt (133,055) 714,637 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - - Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,244) (546,022) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (81,907) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,245) (863,554) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,245) (866,091) TOTAL LIABILITIES AND EQUITY $(496,648) $ 386,938 ================================
* 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
------------------------------------------------------------------------------------------- Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 ------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 656 $ 326 $ 305 $ 596 $ 218 $ 272 $ 369 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 13 $ 12 24 18 8 14 13 TOTAL TAXES PAYABLE 13 12 $ 24 $ 18 $ 8 $ 14 $ 13 SECURED DEBT POST-PETITION -- -- -- ACCRUED INTEREST PAYABLE -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 150 170 50 70 90 110 15 2. Lease Operating Expenses/Capital -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 20,228 $ 19,917 $ 19,787 $ 20,093 $ 19,725 $ 19,804 $ 19,806 ==================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH AUGUST 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 63,810 $ 63,810 $ -- $ -- $ -- $ -- 31-60 831 831 -- -- -- -- 61-90 146 146 -- -- -- -- 91 + 28,898 28,898 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 93,685 $ 93,685 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 AUGUST 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) $ -- $ 44,301,404 $ 1,139,545 $ 1,528,346 TOTAL COST OF REVENUES -- 38,681,482 1,139,545 2,071,510 GROSS PROFIT $ -- $ 5,619,922 $ -- $ (543,164) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 995,228 $ -- $ 145,864 Insiders Compensation -- 112,872 -- -- Professional Fees -- 1,561,468 -- -- Other (Earnings in Joint Venture) -- 76,424 (76,424) -- TOTAL OPERATING EXPENSE $ -- $ 2,745,992 $ (76,424) $ 145,864 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ 2,873,930 $ 76,424 $ (689,028) INTEREST EXPENSE (includes amort of debt fees) -- 2,402,259 -- 614,434 DEPRECIATION -- 1,855,497 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,257,756 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ -- $ (1,383,826) $ 76,424 $ (1,351,033) INCOME TAXES -- -- 1,032 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ -- $ (1,383,826) $ 75,392 $ (1,351,033) ==================================================================================================================================== 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 $ 840,227 $ 559,868 TOTAL COST OF REVENUES -- 56,024 693,525 GROSS PROFIT $ 83,333 $ 784,203 $ (133,657) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 258,199 $ (87,100) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 258,199 $ (87,100) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 526,004 $ (46,557) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,539 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,334 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (120,330) $ (46,557) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (120,330) $ (46,557) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,686,476 $ (453,668) $ 51,685,531 TOTAL COST OF REVENUES 2,577,499 (453,668) 44,765,917 GROSS PROFIT $ 1,108,977 $ -- $ 6,919,614 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,862 $ (558,861) 1,379,192 Insiders Compensation -- -- 112,872 Professional Fees -- -- 1,561,468 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,862 $ (558,861) $ 3,053,532 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 483,115 $ 558,861 3,866,082 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,773,758 DEPRECIATION 326,244 -- 2,738,107 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,244 $ 558,861 $ 6,511,865 ================================================================================================================= NET INCOME BEFORE TAXES $ 156,871 $ -- $ (2,645,783) INCOME TAXES -- -- 1,032 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 156,871 $ -- $ (2,646,815) =================================================================================================================
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 Feb-02 Mar-02 - ----------------------------------------------- ---------- ----------- 1. CASH-BEGINNING OF MONTH $ (45,956) $ (13,573) RECEIPTS: 2. CASH SALES $ $ 3. COLLECTION OF ACCOUNTS RECEIVABLE 969,180 242,792 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 105,019 1,063,679 TOTAL RECEIPTS $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 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 9,970 137,451 18. OTHER (attach list) 996,552 1,128,786 TOTAL DISBURSEMENTS FROM OPERATIONS $1,041,816 $1,279,695 19. PROFESSIONAL FEES $ -- 20. U.S. TRUSTEE FEES -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- TOTAL DISBURSEMENTS $1,041,816 $1,279,695 22. NET CASH FLOW $ 32,383 $ 26,769 23. CASH - END OF MONTH (MOR-2) $ (13,573) $ 13,196 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 Aug-02 DATE - ----------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------- 1. CASH-BEGINNING OF MONTH $ 13,196 $ 164,030 $ 58,277 $ 148,432 $ 170,312 $ 271,082 RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,531,316 1,188,084 139,297 $1,156,999 1,030,756 15,354,525 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 746,611 94,069 1,239,230 630,984 574,906 29,300,004 TOTAL RECEIPTS $2,277,927 $1,282,153 $1,378,527 $1,787,983 $1,605,662 $44,654,529 (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 14,277 275,059 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 22,860 136,439 1,134,887 18. OTHER (attach list) 1,937,473 1,364,063 1,119,071 1,735,079 1,701,779 43,592,187 TOTAL DISBURSEMENTS FROM OPERATIONS $2,127,093 $1,387,906 $1,288,372 $1,766,104 $1,852,495 $45,002,133 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 $1,852,495 $45,002,133 22. NET CASH FLOW $ 150,833 $ (105,753) $ 90,155 $ 21,880 $ (246,833) $ (347,603) 23. CASH - END OF MONTH (MOR-2) $ 164,030 $ 58,277 $ 148,432 $ 170,312 $ (76,521) $ (76,521)
MOR-7 CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: Feb-02 Mar-02 Apr-02 - ----------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income 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 1,063,639 558,861 rec'd in error and to be returned in Nov 01. TOTAL OTHER RECEIPTS $ 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 949,787 351,178 cash disbursements re Inter company AP 31,852 296,424 CIT revolver cash sweep 996,552 147,147 1,289,871 Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 996,552 $ 1,128,786 $ 1,937,473 OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: May-02 Jun-02 Jul-02 Aug-02 DATE - ---------------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 8 57 49 44 $ 1,730 401(k) Plan Refund -- -- Cobra Insurance Payment -- -- Miscellaneous 2,061 48 1,001 7,032 Advance from Parent company - Sterling Chemicals 92,000 137,000 10,000 15,000 458,000 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 1,102,125 620,935 558,861 7,530,289 rec'd in error and to be returned in Nov 01. -- 234,658 TOTAL OTHER RECEIPTS $ 94,069 $1,239,230 $ 630,984 574,906 $29,300,004 18. OTHER DISBURSEMENTS: Workover Expense -- -- Capital Expenditures -- -- Interest Payment -- -- Pre-petition checks voided in current period -- -- Advance to Parent company - Sterling Chemicals 604,865 515,042 305,766 28,038,955 cash disbursements re Inter company AP 497,261 231,893 253,095 3,097,308 CIT revolver cash sweep 1,364,063 16,945 988,144 1,142,918 12,022,681 Capital contribution to SPCUS 433,243 TOTAL OTHER DISBURSEMENTS $1,364,063 $1,119,071 $1,735,079 $1,701,799 $43,592,187
MOR-7 ATTACHMENT CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF AUGUST 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 66,808 46,454 (14,009) 71,060 170,313 =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 979,078 51,678 -- 1,030,756 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) -- -- 573,861 1,045 574,906 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 979,078 51,678 573,861 1,045 1,605,662 --------------- --------------- --------------- --------------- --------------- (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 14,277 14,277 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 127,868 8,571 136,439 18. OTHER (attach list) 1,044,887 98,031 558,861 -- 1,701,779 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,044,887 98,031 686,729 22,848 1,852,495 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 1,044,887 98,031 686,729 22,848 1,852,495 =============== =============== =============== =============== =============== 22. NET CASH FLOW (65,809) (46,353) (112,868) (21,803) (246,833) 23. CASH - END OF MONTH (MOR-2) 999 101 (126,877) 49,257 (76,520)
MOR-7 * Applies to Individual debtor's only. CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF AUGUST 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 15,000 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 558,861 rec'd in error and to be returned in Oct 01. TOTAL OTHER RECEIPTS $ -- $ -- $ 573,861 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 305,766 cash disbursements re Inter company AP 253,095 CIT revolver cash sweep 1,044,887 98,031 Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 1,044,887 $ 98,031 $ 558,861 CIBC OTHER CASH RECEIPTS AND 77-01713 DISBURSEMENTS: Checking Total - --------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 44 $ 44 401(k) Plan Refund -- Advance from Parent company - Sterling Chemicals 15,000 Miscellaneous 1,001 1,001 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 558,861 rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ 1,045 $ 574,906 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals -- 305,766 cash disbursements re Inter company AP -- 253,095 CIT revolver cash sweep 1,142,918 Capital contribution to SPCUS -- TOTAL OTHER DISBURSEMENTS $ -- $ 1,701,779
MOR-7 ATTACHMENT CASE NAME: Sterling Canada, Inc. CASE NUMBER: 01-37810-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF AUGUST 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 $ 1,000 $ 100 $ 596 $ 1,696 $ 63,533 $ 65,229 DEPOSIT IN TRANSIT -- -- OUTSTANDING CHECKS (127,473) (127,473) (14,277) (141,750) ADJUSTED BANK BALANCE $ 1,000 $ 100 $ (126,877) $ (125,777) $ 49,256 $ (76,521) BEGINNING CASH - PER BOOKS $ 66,808 $ 46,454 $ (14,009) $ 99,253 $ 71,059 $ 170,312 RECEIPTS 979,078 51,678 573,861 1,604,617 1,045 1,605,662 TRANSFERS BETWEEN ACCOUNTS -- -- -- -- (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (1,044,887) (98,031) (686,729) (1,829,647) (22,848) $ (1,852,495) ENDING CASH - PER BOOKS $ 1,000 $ 100 $ (126,877) $ (125,777) $ 49,256 $ (76,521)
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 Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 FILING TO /COMP TYPE (2) DATE - --------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 FILING TO NAME/ORDER DATE DATE - --------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.7 9 h00019exv99w7.txt MONTHLY OPERATING RPT.-STERLING PULP CHEM. US, INC EXHIBIT 99.7 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING PULP CHEMICALS US, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37811-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: AUGUST YEAR: 2002
MONTH 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 - ----------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $239,252 $ 286,617 $ 365,854 $ 332,686 $360,103 $578,568 $559,868 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $(59,026) $ (49,004) $ (54,804) $ (62,294) $(35,237) $(20,405) $(46,557) NET INCOME (LOSS) (MOR-6) $(59,026) $ (49,004) $ (54,804) $ (62,294) $(35,237) $(20,405) $(46,557) PAYMENTS TO INSIDERS (MOR-9) $ - $ - $ - $ - $ - $ - $ - PAYMENTS TO PROFESSIONALS (MOR-9) $ - $ - $ - $ - $ - $ - $ - TOTAL DISBURSEMENTS (MOR-7)(1) $ - $ - $ - $ - $ - $ - $ - (1) Excludes intercompany transfers as follows: $ - $ - $ - $ - $ - $ - $ -
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ----------------------------------- CASUALTY YES ( x) NO ( ) 08-01-02 LIABILITY YES ( x) NO ( ) 07-01-02 VEHICLE YES ( x) NO ( ) 07-01-02 WORKER'S YES ( x) NO ( ) 07-01-02 OTHER YES ( x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ----------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN --------------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO --------------------------------------------------- MOR-1 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 12 9/19/02 SUMMARY OF COVERAGES FOR STERLING CHEMICALS HOLDINGS, INC.
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 1 Workers Compensation Statutory - $1,000,000 Employers American Guar. 1 year 7/1/03 Total annual Liability. Zurich US remuneration Ded. $250,000 per accident. 2 Automobile Liability $2,000,000 ea. occurrence. American Guar. 1 year 7/1/03 Number of vehicles Ded. $25,000 per occurrence. Zurich Amer. owned and leased 3 Excess Liability $5,000,000 ea. occurrence and Primex, Ltd 1 year 7/1/03 Annual revenues and Excess to $1 Million SIR aggregate. Excess $1,000,000 GL remuneration $2,000,000 AL. 4 Excess Liability $20,000,000 ea. loss and Primex, Ltd. 1 year 7/1/03 Included aggregate. (Reinsured through Munich Re:) 5 Excess Liability $50,000,000 ea. loss and Gerling Global 1 year 7/1/03 Flat charge - based aggregate. on exposures and risk potential 6 Excess Liability $50,000,000 ea. loss and Zurich Energy - 1 year 7/1/03 Flat charge - based aggregate. London on exposures and 7 Excess Liability $50,000,000 Swiss Re: 1 year 7/1/03 Flat charge 8 Excess Liability $50,000,000 Zurich Ins. 1 year 7/1/03 Flat Charge 9 Excess Liability $100,000,000 Starr Excess 1 year 7/1/03 Flat Charge 10 Marine Terminal $50,000,000 ea. occurrence. New Hampshire Ins. 1 year 7/1/03 Based on volume Operators Liability and Ded. $25,000 per occurrence Co. thru Marsh throughput and no. Charterer's Legal $100,000 pollution London chartered vessels. Liability per occurrence. 11 Excess Marine Liability $24,000,000 excess of MTO, CLL, XL Specialty 1 year 7/1/03 Volume thru put & P&L Brockbank & vessels docked. Liberty Und. 12 Excess Marine Liability $25,000,000 excess $24,000,000 XL Specialty 1 year 7/1/03 Flat Brockbank & N.Y. Marine Gen. Ins.
Page 4 of 12 9/19/02
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 AUGUST 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 $ 1,440 $ - $ 333 Trade accounts receivable, net - 67,625 86 2,774 Other Receivables - 476 - 2,711 Due from affiliates 1,375 26,378 13,702 - Inventories - 25,564 - 8,063 Prepaid expenses 33 4,912 - 36 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 126,395 13,788 13,917 Property, plant and equipment, net - 116,114 2,640 5,787 Deferred income taxes - - - - Investments-Third Party - 1,500 5,408 - Investments in Subs 35,060 94,735 - - Other assets 865 33,462 - 1,160 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,206 $ 21,836 $ 20,864 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 168,110 1,230 7,508 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 45,898 - 11,546 Secured - Other 410 Unsecured debt 186,538 260,294 1,110 71,062 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - - - - 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) - 7,908 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (62,204) 4,162 (12,221) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (513,043) 19,496 (142,242) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (515,580) 19,496 (142,242) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,206 $ 21,836 $ 20,864 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,107 1,036 5,288 Other Receivables - 4,410 - - Due from affiliates 3,551 59,725 888 10,092 Inventories - - 145 1,396 Prepaid expenses - - - - Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,551 66,242 2,069 16,776 Property, plant and equipment, net - - - 41,187 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,514 - Other assets 2,501 1,695 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 6,052 $ 363,748 $ 3,583 $ 57,963 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,567 1,109 2,605 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 737 13,550 - - 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 1,514 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (325) 625 (839) (10,017) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 454 (6,573) 2,304 (6,985) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 454 (6,573) 2,304 (6,985) TOTAL LIABILITIES AND EQUITY $ 6,052 $ 363,748 $ 3,583 $ 57,963 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,774 Trade accounts receivable, net - 78,916 Other Receivables - 7,597 Due from affiliates (114,980) 731 Inventories - 35,168 Prepaid expenses - 4,981 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (114,980) 129,167 Property, plant and equipment, net - 165,728 Deferred income taxes - - Investments-Third Party - 6,908 Investments in Subs (381,667) 45,453 Other assets (1) 39,682 -------------------------------- TOTAL ASSETS $(496,648) $ 386,938 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,172) 156,262 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (12,283) 59,448 Secured - Other 410 Unsecured debt (133,055) 714,637 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - - Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,244) (546,022) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (81,907) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,245) (863,554) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,245) (866,091) TOTAL LIABILITIES AND EQUITY $(496,648) $ 386,938 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
--------------------------------------------------------------------------------------- Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-02 Aug-2002 --------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 949 $ 367 $ 518 $ 936 $ 416 $ 458 $1,056 ROYALTY AND REVENUE PAYABLE NOTES PAYABLE - INSURANCE TAX PAYABLE: Federal Payroll Taxes State Payroll & Sales Ad Valorem Taxes Other Taxes TOTAL TAXES PAYABLE $ -- $ -- $ $ $ $ -- SECURED DEBT POST-PETITION ACCRUED INTEREST PAYABLE *ACCRUED PROFESSIONAL FEES: OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 114 94 19 25 29 341 54 2. Lease Operating Expenses/Capital TOTAL POST-PETITION LIABILITIES (MOR-3) $ 1,063 $ 461 $ 537 $ 962 $ 445 $ 799 $1,109 ================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH AUGUST 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 63,810 $ 63,810 $ -- $ -- $ -- $ -- 31-60 831 831 -- -- -- -- 61-90 146 146 -- -- -- -- 91 + 28,898 28,898 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 93,685 $ 93,685 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 AUGUST 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) $ -- $ 44,301,404 $ 1,139,545 $ 1,528,346 TOTAL COST OF REVENUES -- 38,681,482 1,139,545 2,071,510 GROSS PROFIT $ -- $ 5,619,922 $ -- $ (543,164) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 995,228 $ -- $ 145,864 Insiders Compensation -- 112,872 -- -- Professional Fees -- 1,561,468 -- -- Other (Earnings in Joint Venture) -- 76,424 (76,424) -- TOTAL OPERATING EXPENSE $ -- $ 2,745,992 $ (76,424) $ 145,864 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ 2,873,930 $ 76,424 $ (689,028) INTEREST EXPENSE (includes amort of debt fees) -- 2,402,259 -- 614,434 DEPRECIATION -- 1,855,497 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,257,756 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ -- $ (1,383,826) $ 76,424 $ (1,351,033) INCOME TAXES -- -- 1,032 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ -- $ (1,383,826) $ 75,392 $ (1,351,033) ==================================================================================================================================== 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 $ 840,227 $ 559,868 TOTAL COST OF REVENUES -- 56,024 693,525 GROSS PROFIT $ 83,333 $ 784,203 $ (133,657) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 258,199 $ (87,100) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 258,199 $ (87,100) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 526,004 $ (46,557) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,539 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,334 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (120,330) $ (46,557) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (120,330) $ (46,557) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,686,476 $ (453,668) $ 51,685,531 TOTAL COST OF REVENUES 2,577,499 (453,668) 44,765,917 GROSS PROFIT $ 1,108,977 $ -- $ 6,919,614 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,862 $ (558,861) 1,379,192 Insiders Compensation -- -- 112,872 Professional Fees -- -- 1,561,468 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,862 $ (558,861) $ 3,053,532 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 483,115 $ 558,861 3,866,082 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,773,758 DEPRECIATION 326,244 -- 2,738,107 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,244 $ 558,861 $ 6,511,865 ================================================================================================================= NET INCOME BEFORE TAXES $ 156,871 $ -- $ (2,645,783) INCOME TAXES -- -- 1,032 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 156,871 $ -- $ (2,646,815) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
==================================================================================================================================== CASH RECEIPTS AND 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 FILING TO DISBURSEMENTS DATE - ------------------------------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ RECEIPTS: - ------------------------------------------------------------------------------------------------------------------------------------ 2. CASH SALES $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 3. COLLECTION OF ACCOUNTS RECEIVABLE - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 4. LOANS & ADVANCES (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 5. SALE OF ASSETS - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 6. OTHER (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RECEIPTS $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A - ------------------------------------------------------------------------------------------------------------------------------------ DISBURSEMENTS: - ------------------------------------------------------------------------------------------------------------------------------------ 7. NET PAYROLL $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 8. PAYROLL TAXES PAID - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 9. SALES, USE & OTHER TAXES PAID - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 10. SECURED/RENTAL/LEASES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 11. UTILITIES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 12. INSURANCE - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 13. INVENTORY PURCHASES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 14. VEHICLE EXPENSES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 15. TRAVEL & ENTERTAINMENT - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 16. REPAIRS, MAINTENANCE & SUPPLIES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 17. ADMINISTRATIVE & SELLING - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 18. OTHER (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISBURSEMENTS FROM OPERATIONS $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 19. PROFESSIONAL FEES $ - $ - $ - - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 20. U.S. TRUSTEE FEES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 21. OTHER REORGANIZATION EXPENSES (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISBURSEMENTS $ - $ - $ - - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 22. NET CASH FLOW $ - $ - $ - - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 23. CASH - END OF MONTH (MOR-2) $ - $ - $ - - $ - $ - $ - $ - ====================================================================================================================================
MOR-7 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
================================================================================================================================ OTHER CASH RECEIPTS AND 2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 FILING TO DISBURSEMENTS: DATE - -------------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: - -------------------------------------------------------------------------------------------------------------------------------- Interest Income $ - $ - $ - $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- 401(k) Plan Refund - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Cobra Insurance Payment - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Miscellaneous - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Emission Credits - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER RECEIPTS $ - $ - $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- 18. OTHER DISBURSEMENTS: - -------------------------------------------------------------------------------------------------------------------------------- Capital Expenditures $ - $ - - $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------------------------- Interest Payment - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Restricted Cash - Bond Funding - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- Pre-petition checks voided in current period - - - - - - - - - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- TOTAL OTHER DISBURSEMENTS $ - $ - $ - $ - $ - $ - $ - $ - ================================================================================================================================
MOR-7 ATTACHMENT CASE NAME: Sterling Pulp Chemicals US, Inc. CASE NUMBER: 01-37811-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF AUGUST 2002 --------------------------------- =========================================================================================================================== BANK NAME N/A - --------------------------------------------------------------------------------------------------------------------------- ACCOUNT NUMBER - --------------------------------------------------------------------------------------------------------------------------- ACCOUNT TYPE TOTAL - ------------ ----- - --------------------------------------------------------------------------------------------------------------------------- BANK BALANCE $ - - --------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT - - --------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS - - --------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ - $ - $ - $ - $ - $ - $ - $ - $ - - --------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOS $ - - --------------------------------------------------------------------------------------------------------------------------- RECEIPTS - - --------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS - - --------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - - --------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - - --------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS - - --------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ - $ - $ - $ - $ - $ - $ - $ - $ - ===========================================================================================================================
Note: Bank statements have not been received in time to complete this report. Future reports will include reconciliations for the prior month. MOR-8 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
=================================================================================================================================== Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE - ----------------------------------------------------------------------------------------------------------------------------------- 1. $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 2. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 3. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 7. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 8. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 9. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INSIDERS (MOR-1) $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================================================
=================================================================================================================================== Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 FILING TO PROFESSIONALS DATE NAME/ORDER DATE - ----------------------------------------------------------------------------------------------------------------------------------- 1. $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 2. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 3. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL PROFESSIONALS (MOR-1) $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================================================
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (I) DIRECTORS, (II) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (III) AFFILIATES ; AND (IV) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.8 10 h00019exv99w8.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: AUGUST YEAR: 2002
2/28/02 3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 MONTH Revised Revised - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $3,227,039 $3,175,608 $3,332,627 $3,292,539 $3,272,103 $3,407,217 $3,686,476 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 573,082 $ 561,378 692,530 $ 685,631 $ 803,792 $ 455,418 $ 483,115 NET INCOME (LOSS) (MOR-6) $ 245,985 $ 236,593 365,040 $ 359,532 $ 477,690 $ 129,456 $ 156,871 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $4,778,478 $4,967,073 $5,480,057 $5,781,161 $4,377,813 $4,965,224 $5,156,374 (1) Excludes intercompany transfers as follows: $ -- $2,038,617 $ 773,455 $ -- $1,801,682 $ 737,250 $ 758,872
***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 9/19/02 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 9/19/02
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 AUGUST 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 $ 1,440 $ - $ 333 Trade accounts receivable, net - 67,625 86 2,774 Other Receivables - 476 - 2,711 Due from affiliates 1,375 26,378 13,702 - Inventories - 25,564 - 8,063 Prepaid expenses 33 4,912 - 36 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 126,395 13,788 13,917 Property, plant and equipment, net - 116,114 2,640 5,787 Deferred income taxes - - - - Investments-Third Party - 1,500 5,408 - Investments in Subs 35,060 94,735 - - Other assets 865 33,462 - 1,160 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 372,206 $ 21,836 $ 20,864 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 219 168,110 1,230 7,508 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 45,898 - 11,546 Secured - Other 410 Unsecured debt 186,538 260,294 1,110 71,062 Other / Intercompany - 201,020 - - Deferred income taxes - - - - Common stock held by new ESOP - - - - 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) - 7,908 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,088) (62,204) 4,162 (12,221) Pension adjustment - (3,398) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,720) (513,043) 19,496 (142,242) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,720) (515,580) 19,496 (142,242) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 372,206 $ 21,836 $ 20,864 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ - $ - $ - Trade accounts receivable, net - 2,107 1,036 5,288 Other Receivables - 4,410 - - Due from affiliates 3,551 59,725 888 10,092 Inventories - - 145 1,396 Prepaid expenses - - - - Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 3,551 66,242 2,069 16,776 Property, plant and equipment, net - - - 41,187 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,514 - Other assets 2,501 1,695 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 6,052 $ 363,748 $ 3,583 $ 57,963 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 86 24,567 1,109 2,605 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 737 13,550 - - 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 1,514 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (325) 625 (839) (10,017) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- 454 (6,573) 2,304 (6,985) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 454 (6,573) 2,304 (6,985) TOTAL LIABILITIES AND EQUITY $ 6,052 $ 363,748 $ 3,583 $ 57,963 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 1,774 Trade accounts receivable, net - 78,916 Other Receivables - 7,597 Due from affiliates (114,980) 731 Inventories - 35,168 Prepaid expenses - 4,981 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (114,980) 129,167 Property, plant and equipment, net - 165,728 Deferred income taxes - - Investments-Third Party - 6,908 Investments in Subs (381,667) 45,453 Other assets (1) 39,682 -------------------------------- TOTAL ASSETS $(496,648) $ 386,938 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,172) 156,262 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (12,283) 59,448 Secured - Other 410 Unsecured debt (133,055) 714,637 Other / Intercompany (201,020) - Deferred income taxes - - Common stock held by new ESOP - - Less: Unearned compensation - - Redeemable preferred stock - 27,272 STOCKHOLDERS' EQUITY: Common stock, $.01 par value (1) 123 Additional paid-in capital (40,244) (546,022) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (81,907) Pension adjustment - (3,398) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,245) (863,554) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,245) (866,091) TOTAL LIABILITIES AND EQUITY $(496,648) $ 386,938 ================================
* 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
------------------------------------------------------------------------------------------- Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-02 Aug-2002 ------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 2,652 $ 1,043 $ 1,242 $ 2,368 $ 773 $ 956 $ 1,827 ROYALTY AND REVENUE PAYABLE -- NOTES PAYABLE - INSURANCE -- TAX PAYABLE: -- Federal Payroll Taxes -- State Payroll & Sales -- Ad Valorem Taxes -- Other Taxes 100 120 113 27 166 192 219 TOTAL TAXES PAYABLE $ 100 $ 120 $ 113 $ 27 $ 166 $ 192 $ 219 SECURED DEBT POST-PETITION -- ACCRUED INTEREST PAYABLE -- *ACCRUED PROFESSIONAL FEES: -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 331 374 354 422 442 394 559 2. Lease Operating Expenses/Capital -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 3,073 $ 1,537 $ 1,709 $ 2,817 $ 1,381 $ 1,542 $ 2,605 =================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH AUGUST 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $156,262 $ 145,710 $ -- $ 364 $ 5,427 $ 4,761 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 63,810 $ 63,810 $ -- $ -- $ -- $ -- 31-60 831 831 -- -- -- -- 61-90 146 146 -- -- -- -- 91 + 28,898 28,898 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 93,685 $ 93,685 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 AUGUST 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) $ -- $ 44,301,404 $ 1,139,545 $ 1,528,346 TOTAL COST OF REVENUES -- 38,681,482 1,139,545 2,071,510 GROSS PROFIT $ -- $ 5,619,922 $ -- $ (543,164) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 995,228 $ -- $ 145,864 Insiders Compensation -- 112,872 -- -- Professional Fees -- 1,561,468 -- -- Other (Earnings in Joint Venture) -- 76,424 (76,424) -- TOTAL OPERATING EXPENSE $ -- $ 2,745,992 $ (76,424) $ 145,864 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ -- $ 2,873,930 $ 76,424 $ (689,028) INTEREST EXPENSE (includes amort of debt fees) -- 2,402,259 -- 614,434 DEPRECIATION -- 1,855,497 -- 47,571 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,257,756 $ -- $ 662,005 ==================================================================================================================================== NET INCOME BEFORE TAXES $ -- $ (1,383,826) $ 76,424 $ (1,351,033) INCOME TAXES -- -- 1,032 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ -- $ (1,383,826) $ 75,392 $ (1,351,033) ==================================================================================================================================== 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 $ 840,227 $ 559,868 TOTAL COST OF REVENUES -- 56,024 693,525 GROSS PROFIT $ 83,333 $ 784,203 $ (133,657) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ -- $ 258,199 $ (87,100) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ -- $ 258,199 $ (87,100) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 83,333 $ 526,004 $ (46,557) INTEREST EXPENSE (includes amort of debt fees) 37,665 160,539 -- DEPRECIATION 23,000 485,795 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 60,665 $ 646,334 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ 22,668 $ (120,330) $ (46,557) INCOME TAXES -- -- -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ 22,668 $ (120,330) $ (46,557) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 3,686,476 $ (453,668) $ 51,685,531 TOTAL COST OF REVENUES 2,577,499 (453,668) 44,765,917 GROSS PROFIT $ 1,108,977 $ -- $ 6,919,614 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 625,862 $ (558,861) 1,379,192 Insiders Compensation -- -- 112,872 Professional Fees -- -- 1,561,468 Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 625,862 $ (558,861) $ 3,053,532 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 483,115 $ 558,861 3,866,082 INTEREST EXPENSE (includes amort of debt fees) -- 558,861 3,773,758 DEPRECIATION 326,244 -- 2,738,107 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 326,244 $ 558,861 $ 6,511,865 ================================================================================================================= NET INCOME BEFORE TAXES $ 156,871 $ -- $ (2,645,783) INCOME TAXES -- -- 1,032 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 156,871 $ -- $ (2,646,815) =================================================================================================================
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 Feb-02 Mar-02 Apr-02 - ------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ 50,128 $ (45,869) $ (87,281) ---------- ------------ ----------- RECEIPTS: 2. CASH SALES $ -- $ $ -- ---------- ------------ ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,872,054 3,070,216 3,547,110 ---------- ------------ ----------- 4. LOANS & ADVANCES (attach list) -- -- ---------- ------------ ----------- 5. SALE OF ASSETS -- -- ---------- ------------ ----------- 6. OTHER (attach list) 1,810,427 3,894,062 2,842,408 ---------- ------------ ----------- TOTAL RECEIPTS $4,682,481 $ 6,964,278 $ 6,389,518 ---------- ------------ ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A ---------- ------------ ----------- DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- ---------- ------------ ----------- 8. PAYROLL TAXES PAID -- -- -- ---------- ------------ ----------- 9. SALES, USE & OTHER TAXES PAID 906 700 434 ---------- ------------ ----------- 10. SECURED/RENTAL/LEASES 680 1,070,005 552 ---------- ------------ ----------- 11. UTILITIES 1,207,375 -- 1,202,470 ---------- ------------ ----------- 12. INSURANCE -- 269,741 -- ---------- ------------ ----------- 13. INVENTORY PURCHASES 245,145 46 255,526 ---------- ------------ ----------- 14. VEHICLE EXPENSES -- 126 -- ---------- ------------ ----------- 15. TRAVEL & ENTERTAINMENT 2,334 130,331 265 ---------- ------------ ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 106,723 198,980 92,812 ---------- ------------ ----------- 17. ADMINISTRATIVE & SELLING 219,941 209,070 ---------- ------------ ----------- 18. OTHER (attach list) 2,995,373 5,335,761 4,492,383 ---------- ------------ ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $4,778,478 $ 7,005,690 $ 6,253,512 ---------- ------------ ----------- 19. PROFESSIONAL FEES $ -- $ -- $ -- ---------- ------------ ----------- 20. U.S. TRUSTEE FEES -- -- -- ---------- ------------ ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ---------- ------------ ----------- TOTAL DISBURSEMENTS $4,778,478 $ 7,005,690 $ 6,253,512 ---------- ------------ ----------- 22. NET CASH FLOW $ (95,997)$ (41,412) $ 136,006 ---------- ------------ ----------- 23. CASH - END OF MONTH (MOR-2) $ (45,869)$ (87,281) $ 48,725 ========== ============ =========== ======================================================================================================================== CASH RECEIPTS AND FILING TO DISBURSEMENTS May-02 Jun-02 Jul-02 Aug-02 DATE - --------------------------------------------------------------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ 48,725 $ (79,248) $ (72,403) 212,375 $ 308,953 ----------- ---------- ---------- ---------- ----------- RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- ----------- ---------- ---------- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,163,218 3,106,659 3,317,545 2,565,816 41,711,849 ----------- ---------- ---------- ---------- ----------- 4. LOANS & ADVANCES (attach list) -- -- -- -- ----------- ---------- ---------- ----------- 5. SALE OF ASSETS -- -- -- -- ----------- ---------- ---------- ----------- 6. OTHER (attach list) 2,489,971 3,079,681 2,669,707 2,933,328 39,218,516 ----------- ---------- ---------- ---------- ----------- TOTAL RECEIPTS $ 5,653,189 $6,186,340 $5,987,252 $5,499,144 $80,930,365 ----------- ---------- ---------- ---------- ----------- (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 -- -- 432 2,472 ----------- ---------- ---------- ----------- 10. SECURED/RENTAL/LEASES 6,432 2,857 4,535 1,090 1,102,587 ----------- ---------- ---------- ---------- ----------- 11. UTILITIES 1,773,292 643,683 1,088,733 1,185,928 14,615,679 ----------- ---------- ---------- ---------- ----------- 12. INSURANCE -- -- -- -- 269,741 ----------- ---------- ---------- ---------- ----------- 13. INVENTORY PURCHASES 254,505 237,487 252,476 260,825 3,140,942 ----------- ---------- ---------- ---------- ----------- 14. VEHICLE EXPENSES -- -- -- -- 268 ----------- ---------- ---------- ---------- ----------- 15. TRAVEL & ENTERTAINMENT 6,628 8,209 7,464 1,241 175,487 ----------- ---------- ---------- ---------- ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 163,351 93,590 93,014 148,442 1,484,035 ----------- ---------- ---------- ---------- ----------- 17. ADMINISTRATIVE & SELLING 220,698 188,815 279,602 642,883 3,045,244 ----------- ---------- ---------- ---------- ----------- 18. OTHER (attach list) 3,356,255 5,004,854 3,976,219 3,674,838 57,606,590 ----------- ---------- ---------- ---------- ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 5,781,161 $6,179,495 $5,702,474 $5,915,246 $81,443,045 ----------- ---------- ---------- ---------- ----------- 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- ----------- ---------- ---------- ----------- 20. U.S. TRUSTEE FEES -- -- -- -- ----------- ---------- ---------- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- ----------- ---------- ---------- ----------- TOTAL DISBURSEMENTS $ 5,781,161 $6,179,495 $5,702,474 $5,915,246 $81,443,045 ----------- ---------- ---------- ---------- ----------- 22. NET CASH FLOW $ (127,973) $ 6,845 $ 284,778 $ (416,102) $ (512,680) ----------- ---------- ---------- ---------- ----------- 23. CASH - END OF MONTH (MOR-2) $ (79,248) $ (72,403) $ 212,375 $ (203,727) $ (203,727) =========== ========== ========== ========== ===========
MOR-7 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
==================================================================================================================================== OTHER CASH RECEIPTS AND Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-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 43,427 9,445 265,953 147,898 4,232 215,456 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals 1,767,000 1,846,000 1,788,000 2,342,000 3,079,681 1,802,148 2,509,960 cash receipts re Inter company AR -- 2,038,617 788,455 802,760 207,912 Capital Contribution from SPCUS 58,342 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER RECEIPTS $1,810,427 $3,894,062 $2,842,408 $2,489,971 $3,079,681 $2,669,707 $2,933,328 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 18.OTHER DISBURSEMENTS: Capital Expenditures $ 73,428 $ 150,489 $ 45,333 $ 13,337 $ 63,454 $ 97,351 $ 25,363 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Interest Payment -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Restricted Cash - Bond Funding -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Pre-petition checks voided in current period -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Trade AR receipts of an affiliated co. SPC LTD -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- CIT revolver cash sweep 2,921,945 3,146,655 3,673,595 3,342,918 3,139,718 3,141,618 2,890,603 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- cash disbursements re Inter company AP -- 2,038,617 773,455 1,801,682 737,250 758,872 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $2,995,373 $5,335,761 $4,492,383 $3,356,255 $5,004,854 $3,976,219 $3,674,838 ========== ========== ========== ========== ========== ========== ==========
========================================================= 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 1,556,167 ----------- Cash advance from Sterling Chemicals 27,047,289 cash receipts re Inter company AR Capital Contribution from SPCUS ----------- TOTAL OTHER RECEIPTS $28,605,754 ----------- 18.OTHER DISBURSEMENTS: Capital Expenditures $815,108.92 ----------- 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 $ 3,039,724 ===========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF AUGUST 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 $ 257,791 $ 100 $ (81,789) $ 36,273 $ -- ------------ --------------- --------------- ---------------- ------ RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,128,021 437,795 -- ------------ --------------- --------------- ---------------- ------ 4. LOANS & ADVANCES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 5. SALE OF ASSETS -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 6. OTHER (attach list) 215,456 -- 2,717,872 25,200 -- ------------ --------------- --------------- ---------------- ------ TOTAL RECEIPTS $ 2,343,477 $ 437,795 $ 2,717,872 $ 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 -- -- ------------ --------------- --------------- ---------------- ------ 10. SECURED/RENTAL/LEASES 1,090 -- -- ------------ --------------- --------------- ---------------- ------ 11. UTILITIES 1,185,928 -- -- ------------ --------------- --------------- ---------------- ------ 12. INSURANCE -- -- -- ------------ --------------- --------------- ---------------- ------ 13. INVENTORY PURCHASES 260,825 -- -- ------------ --------------- --------------- ---------------- ------ 14. VEHICLE EXPENSES -- -- -- ------------ --------------- --------------- ---------------- ------ 15. TRAVEL & ENTERTAINMENT 1,241 -- -- ------------ --------------- --------------- ---------------- ------ 16. REPAIRS, MAINTENANCE & SUPPLIES 144,003 4,439 -- ------------ --------------- --------------- ---------------- ------ 17. ADMINISTRATIVE & SELLING 642,251 632 -- ------------ --------------- --------------- ---------------- ------ 18. OTHER (attach list) 2,452,808 437,795 778,266 5,969 -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,452,808 $ 437,795 $ 3,013,603 $ 11,040 $ -- ------------ --------------- --------------- ---------------- ------ 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 20. U.S. TRUSTEE FEES -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS $ 2,452,808 $ 437,795 $ 3,013,603 $ 11,040 $ -- ------------ --------------- --------------- ---------------- ------ 22. NET CASH FLOW $ (109,330) $ -- $ (295,731) $ (11,040) $ -- ------------ --------------- --------------- ---------------- ------ 23. CASH - END OF MONTH (MOR-2) $ 148,461 $ 100 $ (377,520) $ 25,233 $ -- ============ =============== =============== ================ ====== =================================================================== CASH RECEIPTS AND DISBURSEMENTS TOTAL ------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ 212,375 ----------- RECEIPTS: 2. CASH SALES $ -- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,565,816 ----------- 4. LOANS & ADVANCES (attach list) -- ----------- 5. SALE OF ASSETS -- ----------- 6. OTHER (attach list) 2,933,328 ----------- TOTAL RECEIPTS $ 5,499,144 ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A ----------- DISBURSEMENTS: 7. NET PAYROLL $ -- ----------- 8. PAYROLL TAXES PAID -- ----------- 9. SALES, USE & OTHER TAXES PAID -- ----------- 10. SECURED/RENTAL/LEASES 1,090 ----------- 11. UTILITIES 1,185,928 ----------- 12. INSURANCE -- ----------- 13. INVENTORY PURCHASES 260,825 ----------- 14. VEHICLE EXPENSES -- ----------- 15. TRAVEL & ENTERTAINMENT 1,241 ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 148,442 ----------- 17. ADMINISTRATIVE & SELLING 642,883 ----------- 18. OTHER (attach list) 3,674,838 ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 5,915,246 ----------- 19. PROFESSIONAL FEES $ -- ----------- 20. U.S. TRUSTEE FEES -- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- ----------- TOTAL DISBURSEMENTS $ 5,915,246 ----------- 22. NET CASH FLOW $ (416,101) ----------- 23. CASH - END OF MONTH (MOR-2) $ (203,726) ===========
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF AUGUST 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 -- ---------- ---------- ---------- ---------- ---------- Transfer Between Accounts -- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals -- 2,509,960 -- 2,509,960 Funds belonging to Sterling Pulp Chemicals Ltd. 215,456 -- -- -- 215,456 rec'd in error and to be returned in Sept 01. -- cash receipts re Inter company AR 207,912 -- 207,912 ---------- ---------- ---------- ---------- ---------- Return of investment from SPCUS TOTAL OTHER RECEIPTS $ 215,456 $ -- $2,717,872 $ -- $2,933,328 ---------- ---------- ---------- ---------- ---------- 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- -- Capital Expenditures $ $ $ 19,394 $ 5,969 $ 25,363 ---------- ---------- ---------- ---------- ---------- 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 758,872 758,872 ---------- ---------- ---------- ---------- ---------- CIT revolver cash sweep 2,452,808 437,795 2,890,603 ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS -- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $2,452,808 $ 437,795 $ 778,266 $ 5,969 $3,674,838 ========== ========== ========== ========== ==========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11 CASH ACCOUNT RECONCILIATION MONTH OF AUGUST 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 $ 148,461 $ 100 $ 245 $ 148,806 $ 25,988 $ 174,794 - ---------------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT 1,764 $ 1,764 1,764 - ---------------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS (379,531) (379,531) (755) (380,286) - ---------------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ 148,461 $ 100 $ (377,522) $ (228,961) $ 25,233 $ - $ - $ (203,728) - ---------------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOKS $ 257,791 $ 100 $ (81,789) $ 176,102 $ 36,273 212,375 - ---------------------------------------------------------------------------------------------------------------------------------- RECEIPTS 2,343,477 437,795 2,717,872 5,499,144 5,499,144 - ---------------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS - - ---------------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - - ---------------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - - ---------------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS (2,452,808) (437,795) (3,013,605) (5,904,208) (11,040) (5,915,248) - ---------------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ 148,461 $ 100 $ (377,522) $ (228,961) $ 25,233 $ - $ - $ (203,728) ==================================================================================================================================
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.)
============================================================================================================================= Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE 1. $-- $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 7. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 8. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 9. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- TOTAL INSIDERS (MOR-1) $-- $-- $-- $-- $-- $-- $-- $-- === === === === === === === ===
============================================================================================================================= Feb-2002 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 FILING TO PROFESSIONALS DATE NAME/ORDER DATE 1. $-- $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- TOTAL PROFESSIONALS (MOR-1) $-- $-- $-- $-- $-- $-- $-- $-- === === === === === === === ===
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (I) DIRECTORS, (II) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (III) AFFILIATES ; AND (IV) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 -----END PRIVACY-ENHANCED MESSAGE-----