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