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