EX-99.6 8 h00586exv99w6.txt MONTHLY OPERATING REPORT - 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: SEPTEMBER YEAR: 2002
3/31/02 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 MONTH Revised Revised ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $ 1,087,139 $ 1,076,963 $ 1,059,266 $ 617,525 $ 938,666 $ 840,227 $ 727,811 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 786,914 $ 765,999 $ 750,049 $ 326,174 $ 610,556 $ 526,004 $ 433,150 NET INCOME (LOSS) (MOR-6) $ 140,569 $ 101,602 $ 103,679 $ (338,175) $ (35,773) $ (120,330) $(5,663,630) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ 298,056 $ 1,479,491 $ 1,387,906 $ 186,246 $1,019,169 $1,293,634 $ 191,230 (1) Excludes intercompany transfers as follows: $ 981,639 $ 647,602 $ -- $1,102,126 $ 746,935 $ 558,861 $ 1,039,861
***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 15 10/18/02 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 NO. TYPE OF INSURANCE ANNUAL PREMIUM --- ----------------- -------------- 1 Workers Compensation $239,650 - Audit at expiration. (Plus all losses within deductible. (AFCO) 2 Automobile Liability $96,876 (AFCO) 3 Excess Liability $607,121 Annual - Half on 7/1/01; Excess to $1 Million SIR 1/2 on 1/1/02. 4 Excess Liability Included 5 Excess Liability $495,000 (AFCO) 6 Excess Liability $310,000 (AFCO) 7 Excess Liability $280,000 (AFCO) 8 Excess Liability $200,000 (AFCO)
Page 4 of 15 10/18/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 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. & NY M&G throughput and no. Charterer's Legal $100,000 pollution 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. 13 Property Damage, $500 million combined FM Global, 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - 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 8/1/03 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 8/21/02 Various Liability Co. NO. TYPE OF INSURANCE ANNUAL PREMIUM --- ----------------- -------------- 9 Excess Liability $300,000 (AFCO) 10 Marine Terminal $51,850 Min. premium & deposit. (AFCO) Operators Liability and Charterer's Legal Liability 11 Excess Marine Liability $34,425 (AFCO) 12 Excess Marine Liability $21,250 (AFCO) 13 Property Damage, $6,500,000 + Tax (AFCO) Business Interruption and Boiler & Machinery 14 Directors & Officers $444,560 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 15 10/18/02
NO. TYPE OF INSURANCE AMOUNTS/LIMITS INSURANCE CO. TERM EXPIRE EXPOSURE BASE --- ----------------- -------------- ------------- ---- ------ ------------- 17 Employee Dishonesty & $5,000,000 each Insuring Texas Pacific 1 year 10/1/02 Various Depositor's Forgery Agreement. Ded. $50,000. Chubb 18 Hull & Machinery and Barge Hull Value Great-American 1 year 7/1/03 Hull & Machinery Protection & Indemnity (M-25 = ) 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 Limit National Union 1 year 8/21/03 Various Ded. $150,000 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 NO. TYPE OF INSURANCE ANNUAL PREMIUM --- ----------------- -------------- 17 Employee Dishonesty & $14,450 Depositor's Forgery 18 Hull & Machinery and $23,852 (AFCO) Protection & Indemnity 19 Pollution Insurance $3,600 (AFCO) 20 Marine and Railroad Cargo $40,000 Annual Approx. (AFCO) 21 Duty Drawback Bond $2,875 22 Fiduciary $49,000 23 Environmental Impairment $147,831 Liability (Petrochem & Fibers) 24 Closure/Post Closure $40,610 Bonds - Petrochem 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 SEPTEMBER 30, 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 $ 10,216 $ - $ 145 Trade accounts receivable, net - 68,639 57 2,656 Other Receivables - 515 - 2,287 Due from affiliates 1,375 27,999 13,760 - Inventories - 33,021 - 8,231 Prepaid expenses 33 3,678 - 142 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 144,068 13,817 13,461 Property, plant and equipment, net - 114,732 2,580 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,379 - Investments in Subs 35,060 94,735 - - Other assets 865 33,031 - 1,136 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 388,066 $ 21,776 $ 14,597 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 220 186,317 1,136 6,407 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 52,047 - 13,071 Secured - Other 450 Unsecured debt 186,538 256,893 1,110 68,204 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) - 7,874 Retained earnings-Filing Date 191,923 (212,503) 15,333 (137,929) Retained earnings-Post Filing Date (1,089) (55,847) 4,196 (16,020) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,721) (518,178) 19,530 (146,075) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,721) (520,715) 19,530 (146,075) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 388,066 $ 21,776 $ 14,597 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 47 $ - $ - Trade accounts receivable, net - 2,448 878 5,191 Other Receivables - - - - Due from affiliates 2,761 60,549 614 69,559 Inventories - - 157 1,535 Prepaid expenses - - - 10 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,761 63,044 1,649 76,295 Property, plant and equipment, net - - - 40,921 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,298 - Other assets - 1,257 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,761 $ 360,112 $ 2,947 $ 117,216 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 95 24,920 623 3,256 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 835 15,339 - - Secured - Other Unsecured debt 840 264,937 139 121,282 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 1,298 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,440) (5,038) (958) (10,138) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,661) (12,236) 2,185 (7,322) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,661) (12,236) 2,185 (7,322) TOTAL LIABILITIES AND EQUITY $ (2,761) $ 360,112 $ 2,947 $ 117,216 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 10,409 Trade accounts receivable, net - 79,869 Other Receivables - 2,802 Due from affiliates (117,467) 59,150 Inventories (13) 42,931 Prepaid expenses - 3,863 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (117,480) 199,024 Property, plant and equipment, net - 158,233 Deferred income taxes - - Investments-Third Party - 6,879 Investments in Subs (440,452) (13,548) Other assets (1) 36,288 -------------------------------- TOTAL ASSETS $(557,933) $ 386,876 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (49,032) 173,942 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (13,906) 67,386 Secured - Other 450 Unsecured debt (193,048) 706,895 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 (40,053) (546,081) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (88,334) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (40,054) (881,532) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (40,054) (884,069) TOTAL LIABILITIES AND EQUITY $(557,933) $ 386,876 ================================
* 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
------------------------------------------------------------------------------------------- Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 ------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 326 $ 305 $ 596 $ 218 $ 272 $ 369 $ 468 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 $ 12 24 18 8 14 13 7 TOTAL TAXES PAYABLE 12 $ 24 $ 18 $ 8 $ 14 $ 13 7 SECURED DEBT POST-PETITION -- -- -- ACCRUED INTEREST PAYABLE -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 170 50 70 90 110 15 2. Lease Operating Expenses/Capital -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 19,917 $ 19,787 $ 20,093 $ 19,725 $ 19,804 $ 19,806 $ 19,884 ==================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH SEPTEMBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $173,942 $ 163,137 $ -- $ 56 $ 5,713 $ 5,036 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $173,942 $ 163,137 $ -- $ 56 $ 5,713 $ 5,036 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 64,783 $ 64,783 $ -- $ -- $ -- $ -- 31-60 487 487 -- -- -- -- 61-90 714 714 -- -- -- -- 91 + 29,345 29,345 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 95,329 $ 95,329 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 SEPTEMBER 30, 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) $ -- $ 42,522,545 $ 170,870 $ 1,320,224 TOTAL COST OF REVENUES -- 28,245,942 170,870 (1,018,360) GROSS PROFIT $ -- $ 14,276,603 $ -- $ 2,338,584 ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 931 $ (1,344,003) $ -- $ 182,602 Insiders Compensation -- 131,592 -- -- Professional Fees -- 974,971 -- -- Other (Earnings in Joint Venture) -- 972,291 (28,620) -- TOTAL OPERATING EXPENSE $ 931 $ 734,851 $ (28,620) $ 182,602 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (931) $ 13,541,752 $ (28,620) $ 2,155,982 INTEREST EXPENSE (includes amort of debt fees) -- 5,274,570 -- 1,549,137 DEPRECIATION -- 1,859,825 -- 3,100,692 OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- 1,343,304 TOTAL INT. DEPR & OTHER ITEMS $ -- $ 7,134,395 $ -- $ 5,993,133 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (931) $ 6,407,357 $ (28,620) $ (3,837,151) INCOME TAXES -- (21,099) 8,816 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (931) $ 6,428,456 $ (37,436) $ (3,837,151) ==================================================================================================================================== 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) $ (789,313) $ 727,811 $ 376,564 TOTAL COST OF REVENUES -- (80,674) 549,929 GROSS PROFIT $ (789,313) $ 808,485 $ (173,365) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 8,910 $ 375,335 $ (53,786) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 8,910 $ 375,335 $ (53,786) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (798,223) $ 433,150 $ (119,579) INTEREST EXPENSE (includes amort of debt fees) 97,337 1,275,449 -- DEPRECIATION 2,501,170 411,048 -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 2,598,507 $ 1,686,497 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (3,396,730) $ (1,253,347) $ (119,579) INCOME TAXES (282,871) 4,410,283 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (3,113,859) $ (5,663,630) $ (119,579) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,990,326 $ (1,174,862) $ 46,144,165 TOTAL COST OF REVENUES 2,175,239 (1,203,604) 28,839,342 GROSS PROFIT $ 815,087 $ 28,742 $ 17,304,823 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 67,623 $ -- (762,388) Insiders Compensation -- -- 131,592 Professional Fees -- -- 974,971 Other (Earnings in Joint Venture) -- -- 1,000,911 TOTAL OPERATING EXPENSE $ 67,623 $ -- $ 1,345,086 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 747,464 $ 28,742 15,959,737 INTEREST EXPENSE (includes amort of debt fees) 540,833 -- 8,737,326 DEPRECIATION 327,315 -- 8,200,050 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- 1,343,304 TOTAL INT. DEPR & OTHER ITEMS $ 868,148 $ -- $ 18,280,680 ================================================================================================================= NET INCOME BEFORE TAXES $ (120,684) $ 28,742 $ (2,320,943) INCOME TAXES -- -- 4,115,129 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ (120,684) $ 28,742 $ (6,436,072) =================================================================================================================
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 Mar-02 ----------------------------------------------- ----------- 1. CASH-BEGINNING OF MONTH $ (13,573) RECEIPTS: 2. CASH SALES $ 3. COLLECTION OF ACCOUNTS RECEIVABLE 242,792 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 1,063,679 TOTAL RECEIPTS $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 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 137,451 18. OTHER (attach list) 1,128,786 TOTAL DISBURSEMENTS FROM OPERATIONS $1,279,695 19. PROFESSIONAL FEES $ -- 20. U.S. TRUSTEE FEES -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- TOTAL DISBURSEMENTS $1,279,695 22. NET CASH FLOW $ 26,769 23. CASH - END OF MONTH (MOR-2) $ 13,196 CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 DATE --------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------- 1. CASH-BEGINNING OF MONTH $ 13,196 $ 164,030 $ 58,277 $ 148,432 $ 170,312 $ (76,521) $ 271,082 RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,531,316 1,188,084 139,297 $1,156,999 1,030,756 290,454 15,644,979 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 746,611 94,069 1,239,230 630,984 574,906 1,064,523 30,364,527 TOTAL RECEIPTS $2,277,927 $1,282,153 $1,378,527 $1,787,983 $1,605,662 $1,354,977 $46,009,506 (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 4,203 1,139,090 18. OTHER (attach list) 1,937,473 1,364,063 1,119,071 1,735,079 1,701,779 1,226,888 44,819,075 TOTAL DISBURSEMENTS FROM OPERATIONS $2,127,093 $1,387,906 $1,288,372 $1,766,104 $1,852,495 $1,231,091 $46,233,224 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 $1,231,091 $46,233,224 22. NET CASH FLOW $ 150,833 $ (105,753) $ 90,155 $ 21,880 $ (246,833) $ 123,886 $ (223,717) 23. CASH - END OF MONTH (MOR-2) $ 164,030 $ 58,277 $ 148,432 $ 170,312 $ (76,521) $ 47,365 $ 47,365
MOR-7 CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: Mar-02 Apr-02 ---------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 33 $ 9 401(k) Plan Refund Cobra Insurance Payment Miscellaneous Advance from Parent company - Sterling Chemicals 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 $ 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 147,147 1,289,871 Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 1,128,786 $ 1,937,473 OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: May-02 Jun-02 Jul-02 Aug-02 Sep-02 DATE ------------------------------------------------------------------------------------------------------------------------------------ 6. OTHER RECEIPTS: Interest Income $ 8 57 49 44 84 $ 1,814 401(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 15,000 127,000 585,000 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 -- 578 578 cash receipts re Inter company AR 1,102,125 620,935 558,861 936,861 8,467,150 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 $ 1,064,523 $30,364,527 18. OTHER DISBURSEMENTS: Workover Expense -- -- Capital Expenditures -- -- Interest Payment -- -- Pre-petition checks voided in current period -- -- Advance to Parent company - Sterling Chemicals 604,865 515,042 305,766 481,000 28,519,955 cash disbursements re Inter company AP 497,261 231,893 253,095 558,861 3,656,169 CIT revolver cash sweep 1,364,063 16,945 988,144 1,142,918 187,027 12,209,708 Capital contribution to SPCUS 433,243 TOTAL OTHER DISBURSEMENTS $1,364,063 $1,119,071 $1,735,079 $1,701,799 $ 1,226,888 $44,819,075
MOR-7 ATTACHMENT CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF SEPTEMBER 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 999 101 (126,877) 49,257 (76,520) =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 175,588 11,439 103,427 -- 290,454 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 578 -- 1,063,861 84 1,064,523 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 176,166 11,439 1,167,288 84 1,354,977 --------------- --------------- --------------- --------------- --------------- (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 -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 4,203 4,203 18. OTHER (attach list) 175,588 11,439 1,039,861 -- 1,226,888 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 175,588 11,439 1,039,861 4,203 1,231,091 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 175,588 11,439 1,039,861 4,203 1,231,091 =============== =============== =============== =============== =============== 22. NET CASH FLOW 578 -- 127,427 (4,119) 123,886 23. CASH - END OF MONTH (MOR-2) 1,577 101 550 45,138 47,366
MOR-7 * Applies to Individual debtor's only. CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF SEPTEMBER 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 127,000 Miscellaneous Transfer Between Accounts Loan Advance from a subsidiary - Sterling NRO -- Funds belonging to Sterling Pulp Chemicals Ltd. 578 Return of investment from SPCUS cash receipts re Inter company AR 936,861 rec'd in error and to be returned in Oct 01. TOTAL OTHER RECEIPTS $ 578 $ -- $1,063,861 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 481,000 cash disbursements re Inter company AP 558,861 CIT revolver cash sweep 175,588 11,439 Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 175,588 $ 11,439 $1,039,861 CIBC OTHER CASH RECEIPTS AND 77-01713 DISBURSEMENTS: Checking Total --------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 84 $ 84 401(k) Plan Refund -- Advance from Parent company - Sterling Chemicals 127,000 Miscellaneous -- Transfer Between Accounts -- Loan Advance from a subsidiary - Sterling NRO -- Funds belonging to Sterling Pulp Chemicals Ltd. 578 Return of investment from SPCUS -- cash receipts re Inter company AR 936,861 rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ 84 $ 1,064,523 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals -- 481,000 cash disbursements re Inter company AP -- 558,861 CIT revolver cash sweep 187,027 Capital contribution to SPCUS -- TOTAL OTHER DISBURSEMENTS $ -- $ 1,226,888
MOR-7 ATTACHMENT CASE NAME: Sterling Canada, Inc. CASE NUMBER: 01-37810-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF SEPTEMBER 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 $ 1,578 $ 100 $ 551 $ 2,229 $ 45,138 $ 47,367 DEPOSIT IN TRANSIT -- -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 1,578 $ 100 $ 551 $ 2,229 $ 45,138 $ 47,367 BEGINNING CASH - PER BOOKS $ 1,000 $ 100 $ (126,877) $ (125,777) $ 49,256 $ (76,521) RECEIPTS 176,166 11,439 1,167,288 1,354,893 84 1,354,978 TRANSFERS BETWEEN ACCOUNTS -- -- -- -- (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (175,588) (11,439) (1,039,860) (1,226,887) (4,203) $ (1,231,090) ENDING CASH - PER BOOKS $ 1,578 $ 100 $ 551 $ 2,229 $ 45,138 $ 47,367
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 Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 FILING TO /COMP TYPE (2) DATE --------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS Mar-2002 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-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