-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NJtAN64jj8tLbfgrnSZd/CHitbPUo4Ih5WVImpauHV/LV6jUo2D5d0WIdyaxnutg dC3QJnHVzd3dU0a1RaByCw== 0000950129-02-005973.txt : 20021202 0000950129-02-005973.hdr.sgml : 20021202 20021202131158 ACCESSION NUMBER: 0000950129-02-005973 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20021121 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20021202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC /TX/ CENTRAL INDEX KEY: 0000795662 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 760185186 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10059 FILM NUMBER: 02845625 BUSINESS ADDRESS: STREET 1: 1200 SMITH ST, SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 BUSINESS PHONE: 7136503700 MAIL ADDRESS: STREET 1: 1200 SMITH ST SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS HOLDINGS INC DATE OF NAME CHANGE: 19960828 FORMER COMPANY: FORMER CONFORMED NAME: STERLING CHEMICALS INC /TX/ DATE OF NAME CHANGE: 19961218 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STERLING CHEMICAL INC CENTRAL INDEX KEY: 0001014669 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 760502785 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-04343-01 FILM NUMBER: 02845626 BUSINESS ADDRESS: STREET 1: 1200 SMITH STREET STREET 2: SUITE 1900 CITY: HOUSTON STATE: TX ZIP: 77002-4312 BUSINESS PHONE: 7136503700 MAIL ADDRESS: STREET 1: C/O STERLING GROUP INC STREET 2: EIGHT GREENWAY PLAZA, SUITE 702 CITY: HOUSTON STATE: TX ZIP: 77046 FORMER COMPANY: FORMER CONFORMED NAME: STX CHEMICALS CORP DATE OF NAME CHANGE: 19960516 8-K 1 h01651e8vk.txt STERLING CHEMICALS HOLDINGS, INC. - 11/21/2002 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 8-K CURRENT REPORT FILED PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): November 21, 2002 STERLING CHEMICALS HOLDINGS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 1-00059 76-0185186 (STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.) OR ORGANIZATION) 1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------------------ STERLING CHEMICALS INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 333-04343-01 76-0502785 (STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER JURISDICTION OF INCORPORATION FILE NUMBER) IDENTIFICATION NO.) OR ORGANIZATION) 1200 SMITH STREET, SUITE 1900 HOUSTON, TEXAS 77002-4312 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE) (713) 650-3700 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ------------------------ ================================================================================ ITEM 7. EXHIBITS Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals Holdings, Inc. for October 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for October 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for October 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for October 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for October 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for October 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for October 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for October 2002. ITEM 9. REGULATION FD DISCLOSURE On November 21, 2002, Sterling Chemicals Holdings, Inc. and its subsidiaries Sterling Chemicals Inc., Sterling Chemicals Energy, Inc., Sterling Fibers, Inc., Sterling Chemicals International, Inc., Sterling Canada Inc., Sterling Pulp Chemicals US, Inc. and Sterling Pulp Chemicals Inc. filed Monthly Operating Reports with the United States Bankruptcy Court for the Southern District of Texas, Houston Division, in Houston, Texas (the "Bankruptcy Court"). Copies of the Monthly Operating Reports are filed herewith as Exhibits and contain unaudited financial information that is subject to future reconciliations and adjustments that may materially affect stockholder's equity (deficit). -2- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each of the Registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STERLING CHEMICALS HOLDINGS, INC. Date: December 2, 2002 By: /s/ DAVID G. ELKINS ------------------------------------- David G. Elkins, President STERLING CHEMICALS INC. Date: December 2, 2002 By: /s/ DAVID G. ELKINS ------------------------------------- David G. Elkins, President -3- EXHIBIT INDEX Exhibit 99.1 -- Monthly Operating Report for Sterling Chemicals Holdings, Inc. for October 2002. Exhibit 99.2 -- Monthly Operating Report for Sterling Chemicals, Inc. for October 2002. Exhibit 99.3 -- Monthly Operating Report for Sterling Chemicals Energy, Inc. for October 2002. Exhibit 99.4 -- Monthly Operating Report for Sterling Fibers, Inc. for October 2002. Exhibit 99.5 -- Monthly Operating Report for Sterling Chemicals International, Inc. for October 2002. Exhibit 99.6 -- Monthly Operating Report for Sterling Canada, Inc. for October 2002. Exhibit 99.7 -- Monthly Operating Report for Sterling Pulp Chemicals US, Inc. for October 2002. Exhibit 99.8 -- Monthly Operating Report for Sterling Pulp Chemicals, Inc. for October 2002. EX-99.1 3 h01651exv99w1.txt MONTHLY OPERATING REPORT-STERLING CHEMICALS HOLD. EXHIBIT 99.1 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS HOLDINGS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37805-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: OCTOBER YEAR: 2002
MONTH 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 - --------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ -- $ -- $ -- $ -- $ -- $ -- $ -- INCOME BEFORE INT. DEPREC./TAX (MOR-6) $(46,778) $(12,965) $ (932) $(41,359) $ -- $ (931) $(31,112) NET INCOME (LOSS) (MOR-6) $(46,590) $(12,788) $ (932) $(41,359) $ -- $ (931) $(31,112) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $170,000 $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ -- $ -- $170,000 $ -- $ -- $ -- $ -- (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ------------------------------- CASUALTY YES (x) NO ( ) 08-01-02 LIABILITY YES (x) NO ( ) 07-01-02 VEHICLE YES (x) NO ( ) 07-01-02 WORKER'S YES (x) NO ( ) 07-01-02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ---------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ----------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ----------------------------------------------- MOR-1 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 15 11/19/02 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 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 11/19/02
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 & 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 Munich Re: 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - FM Global, 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 $444,650 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 15 11/19/02
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 OCTOBER 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 $ 461 $ - $ 83 Trade accounts receivable, net - 56,863 60 2,586 Other Receivables - 1,254 - 1,999 Due from affiliates 1,375 27,999 13,957 - Inventories - 31,311 - 8,246 Prepaid expenses 33 6,617 - 186 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,505 14,017 13,100 Property, plant and equipment, net - 113,625 2,520 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,445 - Investments in Subs 35,060 94,735 - - Other assets 865 32,777 - 1,112 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 367,142 $ 21,982 $ 14,212 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 251 168,473 1,263 6,637 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 54,755 - 13,751 Secured - Other 469 Unsecured debt 186,538 256,134 1,110 67,942 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 (1,120) (60,895) 4,275 (17,053) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,752) (523,226) 19,609 (147,108) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,752) (525,763) 19,609 (147,108) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 367,142 $ 21,982 $ 14,212 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 99 $ - $ - Trade accounts receivable, net - 2,191 819 4,771 Other Receivables - - 32 - Due from affiliates 2,771 62,541 585 11,459 Inventories - - 100 1,445 Prepaid expenses - - - 144 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,771 64,831 1,536 17,819 Property, plant and equipment, net - - - 40,614 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,487 - Other assets - 1,230 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,771 $ 361,872 $ 3,023 $ 58,433 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 99 25,645 752 3,234 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 878 16,160 - - Secured - Other Unsecured debt 840 264,937 139 62,282 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 1,486 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,477) (4,824) (1,011) (10,087) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,698) (12,022) 2,132 (7,083) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,698) (12,022) 2,132 (7,083) TOTAL LIABILITIES AND EQUITY $ (2,771) $ 361,872 $ 3,023 $ 58,433 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 644 Trade accounts receivable, net - 67,290 Other Receivables - 3,285 Due from affiliates (120,082) 605 Inventories - 41,102 Prepaid expenses - 6,980 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (120,082) 119,906 Property, plant and equipment, net - 156,759 Deferred income taxes - - Investments-Third Party - 6,945 Investments in Subs (395,322) 31,771 Other assets (1) 35,983 -------------------------------- TOTAL ASSETS $(515,405) $ 351,364 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (51,651) 154,703 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (14,651) 70,893 Secured - Other 469 Unsecured debt (133,310) 706,612 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 (53,899) (559,739) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (94,192) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (53,900) (901,048) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (53,900) (903,585) TOTAL LIABILITIES AND EQUITY $(515,405) $ 351,364 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 6 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
---------------------------------------------------------------------------------- 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 ---------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- ROYALTY AND REVENUE PAYABLE -- -- NOTES PAYABLE - INSURANCE -- -- TAX PAYABLE: -- -- Federal Payroll Taxes -- -- State Payroll & Sales -- -- Ad Valorem Taxes -- -- Other Taxes -- -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- SECURED DEBT POST-PETITION -- -- ACCRUED INTEREST PAYABLE -- -- *ACCRUED PROFESSIONAL FEES: -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- -- 2. Lease Operating Expenses/Capital -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ -- $ -- $ -- $ -- $ -- $ -- $ -- ============================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH OCTOBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 52,119 $ 52,119 $ -- $ -- $ -- $ -- 31-60 546 546 -- -- -- -- 61-90 352 352 -- -- -- -- 91 + 30,046 30,046 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 83,063 $ 83,063 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 OCTOBER 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) $ -- $ 36,364,891 $ 203,142 $ 1,605,316 TOTAL COST OF REVENUES -- 33,726,485 203,142 1,732,546 GROSS PROFIT $ -- $ 2,638,406 $ -- $ (127,230) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 31,112 $ 514,746 $ -- $ 178,896 Insiders Compensation -- 470,408 -- -- Professional Fees -- 2,141,012 -- -- Other (Earnings in Joint Venture) -- 133,674 (66,098) -- TOTAL OPERATING EXPENSE $ 31,112 $ 3,259,840 $ (66,098) $ 178,896 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (31,112) $ (621,434) $ 66,098 $ (306,126) INTEREST EXPENSE (includes amort of debt fees) -- 2,553,390 -- 723,970 DEPRECIATION -- 1,860,024 -- -- OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,413,414 $ -- $ 723,970 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (31,112) $ (5,034,848) $ 66,098 $ (1,030,096) INCOME TAXES -- -- 3,738 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (31,112) $ (5,034,848) $ 62,360 $ (1,030,096) ==================================================================================================================================== 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) $ 10,000 $ 851,790 $ 358,662 TOTAL COST OF REVENUES -- 33,247 486,157 GROSS PROFIT $ 10,000 $ 818,543 $ (127,535) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 4,433 $ 225,466 $ (74,101) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 4,433 $ 225,466 $ (74,101) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 5,567 $ 593,077 $ (53,434) INTEREST EXPENSE (includes amort of debt fees) 44,657 289,067 -- DEPRECIATION -- -- -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 44,657 $ 289,067 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (39,090) $ 304,010 $ (53,434) INCOME TAXES -- 90,000 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (39,090) $ 214,010 $ (53,434) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,959,285 $ (397,743) $ 41,955,303 TOTAL COST OF REVENUES 1,952,293 (397,743) 37,736,127 GROSS PROFIT $ 1,006,992 $ -- $ 4,219,176 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 68,229 $ -- 948,781 Insiders Compensation -- -- 470,408 Professional Fees -- -- 2,141,012 Other (Earnings in Joint Venture) -- -- 67,576 TOTAL OPERATING EXPENSE $ 68,229 $ -- $ 3,627,777 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 938,763 $ -- 591,399 INTEREST EXPENSE (includes amort of debt fees) 558,861 -- 4,169,945 DEPRECIATION 327,282 -- 2,187,306 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 886,143 $ -- $ 6,357,251 ================================================================================================================= NET INCOME BEFORE TAXES $ 52,620 $ -- $ (5,765,852) INCOME TAXES -- -- 93,738 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 52,620 $ -- $ (5,859,590) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE - ----------------- -------- --------- --------- --------- --------- ------- ------- ---------- 1. CASH-BEGINNING OF MONTH 170,758 170,946 171,123 1,123 1,123 1,123 1,123 1,362,081 ======= ========= ========= ========= ========= ======= ======= ========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- -- -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 188 177 -- -- -- -- -- 14,043 ------- --------- --------- --------- -------- ------- ------- ---------- TOTAL RECEIPTS 188 177 -- -- -- -- -- 14,043 ------- --------- --------- --------- -------- ------- ------- ---------- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A ======= ========= ========= ========= ======== ======= ======= ========== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES -- -- -- -- -- -- -- -- 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) -- -- -- -- -- -- -- -- ------- --------- --------- --------- -------- ------- ------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- -- -- -- -- ======= ========= ========= ========= ======== ======= ======= ========== 19. PROFESSIONAL FEES -- -- 170,000 -- -- -- -- 1,375,001 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- ------- --------- --------- --------- -------- ------- ------- ---------- TOTAL DISBURSEMENTS -- -- 170,000 -- -- -- -- 1,375,001 ======= ========= ========= ========= ======== ======= ======= ========== 22. NET CASH FLOW 188 177 (170,000) -- -- -- -- (1,360,958) 23. CASH - END OF MONTH (MOR-2) 170,946 171,123 1,123 1,123 1,123 1,123 1,123 1,123
MOR-7 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE ----------------------- -------- ------ ------ ------ ------ ------ ------ --------- 6. OTHER RECEIPTS: Interest Income 188 177 -- -- -- -- -- 14,043 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous -- -- -- -- -- -- -- -- Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- -------- ------ ------ ------ ------ ------ ------ -------- TOTAL OTHER RECEIPTS 188 177 -- -- -- -- -- 14,043 ======== ====== ====== ====== ====== ====== ====== ======== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures -- -- -- -- -- -- -- -- Revenue & Royalties -- -- -- -- -- -- -- -- Interest Payment -- -- -- -- -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- -- -- -- -- Severance tax -- -- -- -- -- -- -- -- Pre-petition checks voided in -- -- -- -- -- -- -- -- current period -------- ------ ------ ------ ------ ------ ------ -------- TOTAL OTHER DISBURSEMENTS -- -- -- -- -- -- -- -- ======== ====== ====== ====== ====== ====== ====== ========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS 00100547125 00100535021 Debtor - ----------------- ----------- ------------ ------------ 1. CASH-BEGINNING OF MONTH -- 1,123 1,123 =========== ============ ============ RECEIPTS: 2. CASH SALES -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- 5. SALE OF ASSETS -- -- -- 6. OTHER (attach list) -- -- -- ----------- ------------ ------------ TOTAL RECEIPTS -- -- -- ----------- ------------ ------------ (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A =========== ============ ============ DISBURSEMENTS: 7. NET PAYROLL -- -- -- 8. PAYROLL TAXES PAID -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- 11. UTILITIES -- -- -- 12. INSURANCE -- -- -- 13. INVENTORY PURCHASES -- -- -- 14. VEHICLE EXPENSES -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- 18. OTHER (attach list) -- -- -- ----------- ------------ ------------ TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- =========== ============ ============ 19. PROFESSIONAL FEES -- -- -- 20. U.S. TRUSTEE FEES -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ----------- ------------ ------------ TOTAL DISBURSEMENTS -- -- -- =========== ============ ============ 22. NET CASH FLOW -- -- -- 23. CASH - END OF MONTH (MOR-2) -- 1,123 1,123
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H-11
OTHER CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS: 00100547125 00100535021 Debtor - ----------------------- ----------- ----------- -------- 6. OTHER RECEIPTS: Interest Income -- -- -- 401(k) Plan Refund -- -- -- Cobra Insurance Payment -- -- -- Miscellaneous -- -- -- Royalty Owners Trust Account -- -- -- Emission Credits -- -- -- -- -- -- -- -- ----------- ----------- -------- TOTAL OTHER RECEIPTS -- -- -- =========== =========== ======== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures -- -- -- Revenue & Royalties Interest Payment -- -- -- Restricted Cash - Bond Funding -- -- -- Severance tax Pre-petition checks voided in current period -- -- -- ----------- ----------- -------- TOTAL OTHER DISBURSEMENTS -- -- -- =========== =========== ========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals Holdings, Inc. CASE NUMBER: 01-37805-H-11 CASH ACCOUNT RECONCILIATION MONTH OF OCTOBER 2002 ------------
Closed BANK NAME Chase Bk of TX Chase Bk of TX ACCOUNT NUMBER 00100547125 0010535021 ACCOUNT TYPE Concentration Concentration TOTAL - -------------- ------------- -------------- ---------- BANK BALANCE $ -- $ 1,123 $ 1,123 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- ADJUSTED BANK BALANCE $ -- $ 1,123 $ -- $ -- $ -- $ -- $ -- $ -- $ 1,123 ============= ============== ====== ====== ====== ====== ====== ====== ========== BEGINNING CASH - PER BOOKS $ -- $ 1,123 $ 1,123 RECEIPTS -- TRANSFERS BETWEEN ACCOUNTS -- (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS -- ------------- -------------- ------ ------ ------ ------ ------ ------ ---------- ENDING CASH - PER BOOKS $ -- $ 1,123 $ -- $ -- $ -- $ -- $ -- $ -- $ 1,123 ============= ============== ====== ====== ====== ====== ====== ====== ==========
MOR-8 CASE NAME: STERLING CHEMICALS HOLDINGS, INC. CASE NUMBER: 01-37805-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE(2) Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-02 Oct-02 DATE - --------------------------------------- -------- -------- -------- -------- -------- -------- -------- ---------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- ------- -------- -------- -------- -------- -------- -------- ---------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======= ======== ======== ======== ======== ======== ======== ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-02 Oct-02 DATE - ------------------------- -------- -------- -------- ----------- -------- ------ ------- ---------- 1. Skadden, Arps, Slate, Meagher & Flom LLP $ -- $ -- $170,000 -- $ -- $ -- $ -- $1,141,786 2. Arthur Andersen -- -- -- -- -- -- -- 233,215 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- ------- ------ -------- ----------- ----------- ------ ------ ---------- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $170,000 $ -- $ -- $ -- $ -- $1,375,001 ======= ====== ======== =========== =========== ====== ====== ==========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.2 4 h01651exv99w2.txt MONTHLY OPERATING REPORT-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: OCTOBER YEAR: 2002
4/30/02 MONTH Revised 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $42,567,625 $ 45,186,158 $48,626,030 $ 31,375,535 $ 44,301,404 $ 42,522,545 $ 36,364,891 INCOME BEFORE INT. DEPREC./TAX $ 5,024,220 $ 4,957,088 $ 7,401,423 $ (404,653) $ 2,873,930 $ 13,541,752 $ (621,434) NET INCOME (LOSS) (MOR-6) $ 495,693 $ 813,702 $ 2,748,385 $ (4,909,430) $ (1,383,826) $ 6,428,456 $ (5,034,848) PAYMENTS TO INSIDERS (MOR-9) $ 494,281 $ 78,911 $ 131,411 $ 78,911 $ 112,872 $ 131,592 $ 470,408 PAYMENTS TO PROFESSIONALS (MOR-9) $ 1,572,252 $ 1,014,508 $ 700,599 $ 1,019,131 $ 622,317 $ 362,823 $ 1,123,130 TOTAL DISBURSEMENTS (MOR-7)(1) $57,893,073 $ 69,069,844 $90,769,682 $ 89,651,958 $ 73,952,992 $ 67,752,947 $ 88,180,518 (1) Excludes intercompany transfers as follows: $20,186,176 $ 16,157,239 $17,490,363 $ 15,729,203 $ 14,831,022 $ 15,653,136 $ 16,106,931
***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 15 11/19/02 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 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 11/19/02
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 & 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 Munich Re: 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - FM Global, Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 et al. 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 $444,650 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 15 11/19/02
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 OCTOBER 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 $ 461 $ - $ 83 Trade accounts receivable, net - 56,863 60 2,586 Other Receivables - 1,254 - 1,999 Due from affiliates 1,375 27,999 13,957 - Inventories - 31,311 - 8,246 Prepaid expenses 33 6,617 - 186 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,505 14,017 13,100 Property, plant and equipment, net - 113,625 2,520 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,445 - Investments in Subs 35,060 94,735 - - Other assets 865 32,777 - 1,112 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 367,142 $ 21,982 $ 14,212 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 251 168,473 1,263 6,637 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 54,755 - 13,751 Secured - Other 469 Unsecured debt 186,538 256,134 1,110 67,942 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 (1,120) (60,895) 4,275 (17,053) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,752) (523,226) 19,609 (147,108) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,752) (525,763) 19,609 (147,108) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 367,142 $ 21,982 $ 14,212 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 99 $ - $ - Trade accounts receivable, net - 2,191 819 4,771 Other Receivables - - 32 - Due from affiliates 2,771 62,541 585 11,459 Inventories - - 100 1,445 Prepaid expenses - - - 144 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,771 64,831 1,536 17,819 Property, plant and equipment, net - - - 40,614 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,487 - Other assets - 1,230 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,771 $ 361,872 $ 3,023 $ 58,433 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 99 25,645 752 3,234 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 878 16,160 - - Secured - Other Unsecured debt 840 264,937 139 62,282 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 1,486 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,477) (4,824) (1,011) (10,087) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,698) (12,022) 2,132 (7,083) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,698) (12,022) 2,132 (7,083) TOTAL LIABILITIES AND EQUITY $ (2,771) $ 361,872 $ 3,023 $ 58,433 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 644 Trade accounts receivable, net - 67,290 Other Receivables - 3,285 Due from affiliates (120,082) 605 Inventories - 41,102 Prepaid expenses - 6,980 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (120,082) 119,906 Property, plant and equipment, net - 156,759 Deferred income taxes - - Investments-Third Party - 6,945 Investments in Subs (395,322) 31,771 Other assets (1) 35,983 -------------------------------- TOTAL ASSETS $(515,405) $ 351,364 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (51,651) 154,703 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (14,651) 70,893 Secured - Other 469 Unsecured debt (133,310) 706,612 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 (53,899) (559,739) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (94,192) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (53,900) (901,048) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (53,900) (903,585) TOTAL LIABILITIES AND EQUITY $(515,405) $ 351,364 ================================
* 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
----------------------------------------------------------------------------------- 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 ----------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 61,483 $ 68,952 $ 70,812 $ 65,012 $ 66,090 $ 67,655 $ 73,489 ROYALTY AND REVENUE PAYABLE -- -- -- -- -- -- -- NOTES PAYABLE - INSURANCE -- -- -- -- -- -- -- TAX PAYABLE: -- -- -- -- -- -- Federal Payroll Taxes 8 98 3 -- -- -- 95 State Payroll & Sales 405 409 415 419 419 56 -- Ad Valorem Taxes -- -- -- -- -- -- -- Other Taxes 5,795 4,408 3,730 4,290 4,850 5,141 5,275 TOTAL TAXES PAYABLE $ 6,208 $ 4,915 $ 4,148 $ 4,709 $ 5,218 $ 5,197 $ 5,370 SECURED DEBT POST-PETITION 78,668 74,598 76,479 58,656 54,769 57,242 32,404 ACCRUED INTEREST PAYABLE 752 518 624 509 486 513 607 *ACCRUED PROFESSIONAL FEES: 6,106 6,427 7,096 7,490 8,478 8,989 10,078 OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 30,498 32,171 32,233 34,268 33,069 46,721 46,525 2. Lease Operating Expenses/Capital -- -- -- -- -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 183,715 $ 187,581 $ 191,392 $170,644 $ 168,110 $186,317 $ 168,473 ============================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH OCTOBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 52,119 $ 52,119 $ -- $ -- $ -- $ -- 31-60 546 546 -- -- -- -- 61-90 352 352 -- -- -- -- 91 + 30,046 30,046 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 83,063 $ 83,063 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 OCTOBER 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) $ -- $ 36,364,891 $ 203,142 $ 1,605,316 TOTAL COST OF REVENUES -- 33,726,485 203,142 1,732,546 GROSS PROFIT $ -- $ 2,638,406 $ -- $ (127,230) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 31,112 $ 514,746 $ -- $ 178,896 Insiders Compensation -- 470,408 -- -- Professional Fees -- 2,141,012 -- -- Other (Earnings in Joint Venture) -- 133,674 (66,098) -- TOTAL OPERATING EXPENSE $ 31,112 $ 3,259,840 $ (66,098) $ 178,896 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (31,112) $ (621,434) $ 66,098 $ (306,126) INTEREST EXPENSE (includes amort of debt fees) -- 2,553,390 -- 723,970 DEPRECIATION -- 1,860,024 -- -- OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,413,414 $ -- $ 723,970 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (31,112) $ (5,034,848) $ 66,098 $ (1,030,096) INCOME TAXES -- -- 3,738 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (31,112) $ (5,034,848) $ 62,360 $ (1,030,096) ==================================================================================================================================== 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) $ 10,000 $ 851,790 $ 358,662 TOTAL COST OF REVENUES -- 33,247 486,157 GROSS PROFIT $ 10,000 $ 818,543 $ (127,535) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 4,433 $ 225,466 $ (74,101) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 4,433 $ 225,466 $ (74,101) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 5,567 $ 593,077 $ (53,434) INTEREST EXPENSE (includes amort of debt fees) 44,657 289,067 -- DEPRECIATION -- -- -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 44,657 $ 289,067 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (39,090) $ 304,010 $ (53,434) INCOME TAXES -- 90,000 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (39,090) $ 214,010 $ (53,434) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,959,285 $ (397,743) $ 41,955,303 TOTAL COST OF REVENUES 1,952,293 (397,743) 37,736,127 GROSS PROFIT $ 1,006,992 $ -- $ 4,219,176 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 68,229 $ -- 948,781 Insiders Compensation -- -- 470,408 Professional Fees -- -- 2,141,012 Other (Earnings in Joint Venture) -- -- 67,576 TOTAL OPERATING EXPENSE $ 68,229 $ -- $ 3,627,777 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 938,763 $ -- 591,399 INTEREST EXPENSE (includes amort of debt fees) 558,861 -- 4,169,945 DEPRECIATION 327,282 -- 2,187,306 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 886,143 $ -- $ 6,357,251 ================================================================================================================= NET INCOME BEFORE TAXES $ 52,620 $ -- $ (5,765,852) INCOME TAXES -- -- 93,738 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 52,620 $ -- $ (5,859,590) =================================================================================================================
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 Apr-02 May-02 ------------ ------------ 1. CASH-BEGINNING OF MONTH (605,842) 1,432,341 ============ ============ RECEIPTS: 2. CASH SALES -- -- ------------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 17,926,575 34,807,911 4. LOANS & ADVANCES - CIT REVOLVER 46,100,000 37,400,000 5. SALE OF ASSETS -- -- 6. OTHER (attach list) 16,090,857 11,363,818 ------------ ------------ TOTAL RECEIPTS 80,117,432 83,571,729 ------------ ------------ (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A ============ ============ DISBURSEMENTS: 7. NET PAYROLL 1,983,856 1,609,373 8. PAYROLL TAXES PAID 932,205 936,861 9. SALES, USE & OTHER TAXES PAID 1,650,149 1,456,271 10.SECURED/RENTAL/LEASES 30,705 101,829 11.UTILITIES 6,922,372 3,817,800 12.INSURANCE 50,625 15,583 13.INVENTORY PURCHASES 17,691,587 16,201,310 14.VEHICLE EXPENSES -- -- 15.TRAVEL & ENTERTAINMENT 65,732 72,716 16.REPAIRS, MAINTENANCE & SUPPLIES 3,235,006 1,896,650 17.ADMINISTRATIVE & SELLING 4,503,340 4,089,807 18.OTHER (attach list) 39,441,420 54,014,374 TOTAL DISBURSEMENTS FROM OPERATIONS 76,506,997 84,212,575 19.PROFESSIONAL FEES 1,525,502 1,014,508 20.U.S. TRUSTEE FEES 46,750 -- 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- ------------ ------------ TOTAL DISBURSEMENTS 78,079,249 85,227,083 ============ ============ 22.NET CASH FLOW 2,038,183 (1,655,353) 23.CASH - END OF MONTH (MOR-2) 1,432,341 (223,012) per MOR-7 1,432,341.16 (223,012.32) per 211 trial balance 1,865,999.23 1,368,935.72 ------------ ------------ difference 433,658.07 1,591,948.04 g/1 acct 10123 - not a good account, s/b zero 794.70 0.00 g/1 acct 10131 - account was closed before filing, bal s/b zero 4,029.99 0.00 g/1 acct 10199 - cash overdraft reclass of outstanding checks 428,833.38 1,591,948.04 ------------ ------------ reconciled difference 433,658.07 1,591,948.04 CASH RECEIPTS AND FILING TO DISBURSEMENTS Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE ------------ ------------ ------------ ------------- ------------ ------------- 1. CASH-BEGINNING OF MONTH (223,012) 2,127,996 (648,863) 155,243 10,216,056 9,346,546 ============ ============ ============ ============= ============ ============= RECEIPTS: 2. CASH SALES -- -- -- -- -- -- ------------ ------------ ------------ ------------- ------------ ------------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 46,518,489 50,696,794 37,988,857 41,624,865 45,651,554 474,420,858 4. LOANS & ADVANCES - CIT REVOLVER 51,000,000 40,400,000 40,900,000 39,000,000 38,200,000 546,300,000 5. SALE OF ASSETS -- -- -- -- -- -- 6. OTHER (attach list) 13,092,564 11,507,508 10,699,263 12,842,031 11,128,933 192,710,209 ------------ ------------ ------------ ------------- ------------ ------------- TOTAL RECEIPTS 110,611,053 102,604,302 89,588,121 93,466,896 94,980,488 1,213,431,067 ------------ ------------ ------------ ------------- ------------ ------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A ============ ============ ============ ============= ============ ============= DISBURSEMENTS: 7. NET PAYROLL 2,733,978 1,746,717 839,107 2,316,573 2,368,561 30,558,214 8. PAYROLL TAXES PAID 1,092,418 852,876 819,258 763,168 1,084,046 13,920,465 9. SALES, USE & OTHER TAXES PAID 1,303,015 117,874 155,540 -- 134,653 7,944,471 10.SECURED/RENTAL/LEASES 147,956 167,081 52,603 114,647 182,652 2,220,408 11.UTILITIES 3,361,146 4,886,600 3,726,325 4,443,473 4,507,855 55,946,653 12.INSURANCE 7,256 1,010,982 2,806,647 682,576 682,576 10,618,063 13.INVENTORY PURCHASES 29,280,908 20,102,494 19,550,777 20,626,111 16,705,209 222,416,446 14.VEHICLE EXPENSES -- -- -- -- -- -- 15.TRAVEL & ENTERTAINMENT 38,426 19,843 32,254 56,335 53,599 735,895 16.REPAIRS, MAINTENANCE & SUPPLIES 1,681,812 1,825,551 2,065,181 1,434,386 1,448,005 33,459,416 17.ADMINISTRATIVE & SELLING 2,334,678 3,411,237 2,111,745 3,707,187 2,623,594 44,344,792 18.OTHER (attach list) 65,577,853 70,220,775 56,002,260 48,898,803 74,496,700 787,838,564 TOTAL DISBURSEMENTS FROM OPERATIONS 107,559,446 104,362,030 88,161,697 83,043,260 104,287,449 1,210,003,386 19.PROFESSIONAL FEES 700,599 971,381 622,317 362,823 1,076,880 12,628,762 20.U.S. TRUSTEE FEES -- 47,750 -- -- 46,250 234,500 21.OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- 250,000 375,000 ------------ ------------ ------------ ------------- ------------ ------------- TOTAL DISBURSEMENTS 108,260,045 105,381,161 88,784,014 83,406,083 105,660,579 1,223,241,648 ============ ============ ============ ============= ============ ============= 22.NET CASH FLOW 2,351,008 (2,776,859) 804,106 10,060,813 (10,680,091) (9,810,581) 23.CASH - END OF MONTH (MOR-2) 2,127,996 (648,863) 155,243 10,216,056 (464,035) (464,035) per MOR-7 2,127,995.75 (648,863.18) 155,243.26 10,216,055.80 (464,035.42) per 211 trial balance 2,127,995.75 807,570.06 1,439,881.93 10,216,055.80 460.952.13 ------------ ------------ ------------ ------------- ------------- difference (0.00) 1,456,433.24 1,284,638.67 (0.00) 924,987.55 g/1 acct 10123 - not a good account, s/b zero 0.00 0.00 0.00 0.00 0.00 g/1 acct 10131 - account was closed before filing, bal s/b zero 0.00 0.00 0.00 0.00 0.00 g/1 acct 10199 - cash overdraft reclass of outstanding checks reconciled difference 0.00 1,456,433.24 1,284,638.67 0.00 924,987.55 ------------ ------------ ------------ ------------- ------------- 0.00 1,456,433.24 1,284,638.67 0.00 924,987.55
MOR-7 CASE NAME: STERLING CHEMICALS, INC. CASE NUMBER: 01-37806-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE ---------- ------------- ------------ ----------- ---------- ---------- ------------ ----------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- 80,302 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Miscellaneous 195,444 128,178 159,394 119,703 129,984 115,953 70,287 3,330,187 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Account Transfers 15,239,518 11,235,640 11,535,051 10,517,018 9,680,461 10,293,339 10,256,352 175,137,295 Intercompany Transfers 655,895 -- 1,398,119 870,787 888,819 2,432,738 802,294 14,162,425 ---------- ------------- ------------- ---------- ---------- ---------- ------------ ----------- TOTAL OTHER RECEIPTS 16,090,857 11,363,818 13,092,564 11,507,508 10,699,263 12,842,031 11,128,933 192,710,209 ========== ============= ============= ========== ========== ========== ============ =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures (581,465 598,552 134,895 178,576 133,192 219,678 468,375 7,677,966 Revenue & Royalties -- -- -- -- -- -- -- -- Interest Payment -- -- -- -- -- -- -- 97,161 Employee Benefits 2,492,292 1,544,520 2,998,019 1,890,070 1,393,784 1,198,033 1,905,173 28,627,602 Severance tax -- -- -- -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- -- -- -- (30,000) Account Transfers 15,239,518 11,235,640 11,535,051 10,517,018 9,680,461 10,293,339 10,256,352 175,137,295 CIT Revolver Payments 17,344,416 35,714,063 44,954,575 52,422,925 39,644,262 31,827,957 56,017,221 494,396,687 Intercompany Transfers 4,946,658 4,921,599 5,955,312 5,212,185 5,150,562 5,359,797 5,849,579 81,931,853 ---------- ------------- ------------- ---------- ---------- ---------- ------------ ----------- TOTAL OTHER DISBURSEMENTS 39,441,420 54,014,374 65,577,853 70,220,775 56,002,260 48,898,803 74,496,700 787,838,564 ========== ============= ============= ========== ========== ========== ============ ===========
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 8,638,068 28,494 949,458 (1,071,699) =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 42,455,612 4. LOANS & ADVANCES - CIT REVOLVER 38,200,000 5. SALE OF ASSETS 6. OTHER (attach list) -- 802,294 2,950,000 6,666,825 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 42,455,612 39,002,294 2,950,000 6,666,825 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL 2,368,561 -- 8. PAYROLL TAXES PAID 1,084,046 9. SALES, USE & OTHER TAXES PAID 134,653 -- 10. SECURED/RENTAL/LEASES 182,652 11. UTILITIES 4,507,855 12. INSURANCE 13,730 668,846 13. INVENTORY PURCHASES 16,547,869 157,340 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 53,599 16. REPAIRS, MAINTENANCE & SUPPLIES 1,448,005 17. ADMINISTRATIVE & SELLING 163,894 2,459,700 18. OTHER (attach list) 51,093,358 17,237,797 -- 602,155 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 51,093,358 38,605,797 3,452,606 5,572,297 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- 17,200 -- 1,059,680 20. U.S. TRUSTEE FEES -- -- -- 46,250 21. OTHER REORGANIZATION EXPENSES (attach list) -- 250,000 -- -- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 51,093,358 38,872,997 3,452,606 6,678,227 =============== =============== =============== =============== 22. NET CASH FLOW (8,637,746) 129,297 (502,606) (11,402) 23. CASH - END OF MONTH (MOR-2) 322 157,791 446,852 (1,083,101) CASH RECEIPTS AND Chase Chase Bank One Total DISBURSEMENTS 6301810036508 6301810028508 5561833 Debtor ----------------- --------------- --------------- --------------- --------------- 1. CASH-BEGINNING OF MONTH -- -- 1,671,735 10,216,056 =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,195,942 45,651,554 4. LOANS & ADVANCES - CIT REVOLVER 38,200,000 5. SALE OF ASSETS -- 6. OTHER (attach list) 634,236 5,291 70,287 11,128,933 --------------- --------------- --------------- --------------- TOTAL RECEIPTS 634,236 5,291 3,266,229 94,980,488 --------------- --------------- --------------- --------------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A =============== =============== =============== =============== DISBURSEMENTS: 7. NET PAYROLL -- -- -- 2,368,561 8. PAYROLL TAXES PAID 1,084,046 9. SALES, USE & OTHER TAXES PAID 134,653 10. SECURED/RENTAL/LEASES 182,652 11. UTILITIES 4,507,855 12. INSURANCE 682,576 13. INVENTORY PURCHASES 16,705,209 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT 53,599 16. REPAIRS, MAINTENANCE & SUPPLIES 1,448,005 17. ADMINISTRATIVE & SELLING 2,623,594 18. OTHER (attach list) 634,236 5,291 4,923,863 74,496,700 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 634,236 5,291 4,923,863 104,287,449 =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- 1,076,880 20. U.S. TRUSTEE FEES -- -- -- 46,250 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- 250,000 --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 634,236 5,291 4,923,863 105,660,579 =============== =============== =============== =============== 22. NET CASH FLOW -- -- (1,657,634) (10,680,091) 23. CASH - END OF MONTH (MOR-2) -- -- 14,101 (464,035)
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 2,950,000 6,666,825 Intercompany Transfers 802,294 ---------- ---------- --------- ---------- TOTAL OTHER RECEIPTS -- 802,294 2,950,000 6,666,825 ========== ========== ========= ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures 468,375 Revenue & Royalties Interest Payment Employee Benefits 1,131,866 133,780 Severance tax Pre-petition checks voided in current period Account Transfers 10,256,352 CIT Revolver Payments 51,093,358 Intercompany Transfers 5,849,579 ---------- ---------- --------- ---------- TOTAL OTHER DISBURSEMENTS 51,093,358 17,237,797 -- 602,155 ========== ========== ========= ========== 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 70,287 70,287 Royalty Owners Trust Account -- Emission Credits -- Account Transfers 634,236 5,291 10,256,352 Intercompany Transfers 802,294 --------- --------- ------------ ---------- ---------- TOTAL OTHER RECEIPTS 634,236 5,291 -- 70,287 11,128,933 ========= ========= ============ ========== ========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- Workover Expense -- Capital Expenditures 468,375 Revenue & Royalties -- Interest Payment -- Employee Benefits 634,236 5,291 1,905,173 Severance tax -- Pre-petition checks voided in current period -- Account Transfers 10,256,352 CIT Revolver Payments 4,923,863 56,017,221 Intercompany Transfers 5,849,579 --------- --------- ------------ ---------- ---------- TOTAL OTHER DISBURSEMENTS 634,236 5,291 -- 4,923,863 74,496,700 ========= ========= ============ ========== ==========
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals, Inc. CASE NUMBER: 01-37806-H-11 CASH ACCOUNT RECONCILIATION MONTH OF OCTOBER 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 $ 100 $ 158,013 $ 251,988 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS (1,083,100) OTHER 221 (222) 194,863 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ 321 $ 157,791 $ 446,851 $ (1,083,100) =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ 8,638,067 $ 28,494 $ 949,457 $ (1,071,698) RECEIPTS 42,455,612 38,200,000 TRANSFERS BETWEEN ACCOUNTS (15,303,637) 2,950,000 6,666,825 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (51,093,358) (22,767,066) (3,452,606) (6,678,227) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ 321 $ 157,791 $ 446,851 $ (1,083,100) =============== =============== =============== =============== 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 $ -- $ -- $ 14,100 $ 424,201 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS (1,083,100) OTHER -- 1 194,863 --------------- --------------- --------------- --------------- ADJUSTED BANK BALANCE $ -- $ -- $ 14,101 $ (464,036) =============== =============== =============== =============== BEGINNING CASH - PER BOOKS $ -- $ -- $ 1,671,735 $ 10,216,055 RECEIPTS 3,266,229 83,921,841 TRANSFERS BETWEEN ACCOUNTS 634,236 5,291 (5,047,285) (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (634,236) (5,291) (4,923,863) (89,554,647) --------------- --------------- --------------- --------------- ENDING CASH - PER BOOKS $ -- $ -- $ 14,101 $ (464,036) =============== =============== =============== ===============
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(1) Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-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 30,333 30,333 30,333 30,333 30,333 30,333 30,333 359,332 6. David Elkins/President/Bonus 136,500 -- 21,875 -- 22,288 21,875 136,500 383,663 7. David Elkins/President/Expenses 5,115 -- -- 37 181 -- 15,347 8. David Elkins/President/Life Insurance -- 1,445 -- -- 3,629 9. Richard Crump/Exec VP Opers/Salary 27,917 27,917 27,917 27,917 27,917 27,917 27,917 329,472 10. Richard Crump/Exec VP Opers/Bonus 125,625 -- 20,625 -- -- 20,625 125,625 334,063 11. Richard Crump/Exec VP Opers/Expense 6,728 -- 25 -- 30 24,112 12. Paul Vanderhoven/VP Finance & CFO/Salary 18,333 18,333 18,333 18,333 18,333 18,333 18,333 213,332 13. Paul Vanderhoven/VP Finance & CFO/Bonus 79,200 -- 10,000 -- -- 10,000 79,200 199,400 14. Paul Vanderhoven/VP Finance & CFO/Expense 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 27,936 16. Robert Roten/Former Pres & Board Member/Consulting fee 10,000 -- -- 30,000 17. Robert Roten/Former Pres & Board Member/BOD fee 13,750 -- 10,000 20,000 58,900 18. Rolf Towe/Board Member/BOD fees 9,650 -- 7,050 27,550 19. Rolf Towe/Board Member/Expenses -- -- 5,592 21,725 20. Hunter Nelson/Board Member 10,350 -- 10,450 31,950 21. Frank Hevrdejs/Board Member 12,050 -- 7,050 31,350 -------- ---------- --------- --------- --------- --------- --------- ---------- TOTAL INSIDERS (MOR-1) $494,281 $ 78,911 $ 131,411 $ 78,911 $ 112,872 $ 131,592 $ 470,408 $2,219,833 ======== ========== ========= ========= ========= ========= ========= ==========
PROFESSIONALS FILING TO NAME/ORDER DATE Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 DATE - --------------------------- ----------- ----------- --------- --------- ---------- ----------- ----------- ----------- 1. Logan & Company, Inc. $ 3,541 $ 6,645.54 $ 2,631.30 $ 2,850 $ 13,370 $ 5,538.58 $ 19,892 $ 199,548 2. Andrews & Kurth LLP 132,819 256,170.65 246,122.69 199,288 227,814 128,654.51 100,347 1,983,114 3. US Trustee 46,750 -- -- 47,750 -- -- 46,250 194,250 4. Skadden, Arps, Slate, Meagher & Flom LLP 321,403 406,542.75 115,338.02 405,299 92,770 -- 472,733 3,208,160 5. Akin Gump Strauss 78,728 81,093.82 104,790.97 64,896 91,414 28,235.40 17,599 980,208 6. Arthur Andersen 95,421 70,316.52 -- 12,986 -- -- -- 483,048 7. Lazard Freres & Co. LLC 295,856 138,638.86 182,916.20 138,779 135,315 136,320.88 135,329 1,869,674 8. Baker & Botts 66,007 30,965.11 10,376.97 13,310 10,488 -- 6,460 615,970 9. Groom Law Group 23,879 10,670.30 4,244.10 4,735 11,727 28,999.85 26,769 156,531 10. Nexant, Inc. 9,595 13,464.59 34,178.90 76,738 39,419 35,073.89 -- 353,608 11. Greenhill & Co. 498,253 -- -- 52,500 -- -- -- 1,101,676 12. Deloitte & Touche(2) -- -- -- -- -- -- 297,751 297,751 ----------- ----------- ----------- --------- ---------- ----------- ----------- ----------- TOTAL PROFESSIONALS (MOR-1) $ 1,572,252 $ 1,014,508 $ 700,599 $1,019,131 $ 622,317 $ 362,823 $ 1,123,130 $11,443,537 =========== =========== =========== ========== ========== =========== =========== ===========
(1) 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. (2) OCTOBER 2002 FIGURE INCLUDES PAYMENTS MADE IN PRIOR PERIODS NOT YET INCLUDED IN THIS MOR. MOR-9 EX-99.3 5 h01651exv99w3.txt MONTHLY OPERATING REPORT-STERLING CHEMICALS ENERGY EXHIBIT 99.3 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS ENERGY, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37807-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: OCTOBER YEAR: 2002
MONTH 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 9/30/02 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 193,956 $ 185,170 $ 184,425 $ 212,365 $1,139,545 $ 170,870 $ 203,142 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 15,879 $ 69,703 $ 49,066 $ 50,511 76,424 $ (28,620) $ 66,098 NET INCOME (LOSS) (MOR-6) $ 14,278 $ 51,703 $ 46,732 $ 48,126 75,392 $ (37,436) $ 62,360 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ 914,795 $1,353,466 $1,400,931 $1,315,008 $1,243,396 $1,193,039 $1,207,428 (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ------------------------------- CASUALTY YES (x) NO ( ) 08-01-02 LIABILITY YES (x) NO ( ) 07-01-02 VEHICLE YES (x) NO ( ) 07-01-02 WORKER'S YES (x) NO ( ) 07-01-02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ---------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ----------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ----------------------------------------------- MOR-1 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 15 11/19/02 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 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 11/19/02
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 & 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 Munich Re: 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - FM Global, 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 $444,650 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 15 11/19/02
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 OCTOBER 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 $ 461 $ - $ 83 Trade accounts receivable, net - 56,863 60 2,586 Other Receivables - 1,254 - 1,999 Due from affiliates 1,375 27,999 13,957 - Inventories - 31,311 - 8,246 Prepaid expenses 33 6,617 - 186 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,505 14,017 13,100 Property, plant and equipment, net - 113,625 2,520 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,445 - Investments in Subs 35,060 94,735 - - Other assets 865 32,777 - 1,112 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 367,142 $ 21,982 $ 14,212 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 251 168,473 1,263 6,637 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 54,755 - 13,751 Secured - Other 469 Unsecured debt 186,538 256,134 1,110 67,942 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 (1,120) (60,895) 4,275 (17,053) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,752) (523,226) 19,609 (147,108) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,752) (525,763) 19,609 (147,108) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 367,142 $ 21,982 $ 14,212 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 99 $ - $ - Trade accounts receivable, net - 2,191 819 4,771 Other Receivables - - 32 - Due from affiliates 2,771 62,541 585 11,459 Inventories - - 100 1,445 Prepaid expenses - - - 144 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,771 64,831 1,536 17,819 Property, plant and equipment, net - - - 40,614 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,487 - Other assets - 1,230 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,771 $ 361,872 $ 3,023 $ 58,433 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 99 25,645 752 3,234 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 878 16,160 - - Secured - Other Unsecured debt 840 264,937 139 62,282 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 1,486 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,477) (4,824) (1,011) (10,087) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,698) (12,022) 2,132 (7,083) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,698) (12,022) 2,132 (7,083) TOTAL LIABILITIES AND EQUITY $ (2,771) $ 361,872 $ 3,023 $ 58,433 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 644 Trade accounts receivable, net - 67,290 Other Receivables - 3,285 Due from affiliates (120,082) 605 Inventories - 41,102 Prepaid expenses - 6,980 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (120,082) 119,906 Property, plant and equipment, net - 156,759 Deferred income taxes - - Investments-Third Party - 6,945 Investments in Subs (395,322) 31,771 Other assets (1) 35,983 -------------------------------- TOTAL ASSETS $(515,405) $ 351,364 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (51,651) 154,703 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (14,651) 70,893 Secured - Other 469 Unsecured debt (133,310) 706,612 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 (53,899) (559,739) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (94,192) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (53,900) (901,048) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (53,900) (903,585) TOTAL LIABILITIES AND EQUITY $(515,405) $ 351,364 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
--------------------------------------------------------------------------------------- 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 --------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 1,493 $ 1,433 $ 1,364 $ 1,298 $ 1,230 $ 1,136 $ 1,263 ROYALTY AND REVENUE PAYABLE -- NOTES PAYABLE - INSURANCE -- TAX PAYABLE: -- Federal Payroll Taxes -- State Payroll & Sales -- Ad Valorem Taxes -- Other Taxes -- TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- SECURED DEBT POST-PETITION -- ACCRUED INTEREST PAYABLE -- *ACCRUED PROFESSIONAL FEES: -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- 2. Lease Operating Expenses/Capital -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 1,493 $ 1,433 $ 1,364 $ 1,298 $ 1,230 $ 1,136 $ 1,263 ===============================================================================================================================
*Payment Requires Court Approval. MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH OCTOBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 52,119 $ 52,119 $ -- $ -- $ -- $ -- 31-60 546 546 -- -- -- -- 61-90 352 352 -- -- -- -- 91 + 30,046 30,046 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 83,063 $ 83,063 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 OCTOBER 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) $ -- $ 36,364,891 $ 203,142 $ 1,605,316 TOTAL COST OF REVENUES -- 33,726,485 203,142 1,732,546 GROSS PROFIT $ -- $ 2,638,406 $ -- $ (127,230) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 31,112 $ 514,746 $ -- $ 178,896 Insiders Compensation -- 470,408 -- -- Professional Fees -- 2,141,012 -- -- Other (Earnings in Joint Venture) -- 133,674 (66,098) -- TOTAL OPERATING EXPENSE $ 31,112 $ 3,259,840 $ (66,098) $ 178,896 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (31,112) $ (621,434) $ 66,098 $ (306,126) INTEREST EXPENSE (includes amort of debt fees) -- 2,553,390 -- 723,970 DEPRECIATION -- 1,860,024 -- -- OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,413,414 $ -- $ 723,970 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (31,112) $ (5,034,848) $ 66,098 $ (1,030,096) INCOME TAXES -- -- 3,738 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (31,112) $ (5,034,848) $ 62,360 $ (1,030,096) ==================================================================================================================================== 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) $ 10,000 $ 851,790 $ 358,662 TOTAL COST OF REVENUES -- 33,247 486,157 GROSS PROFIT $ 10,000 $ 818,543 $ (127,535) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 4,433 $ 225,466 $ (74,101) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 4,433 $ 225,466 $ (74,101) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 5,567 $ 593,077 $ (53,434) INTEREST EXPENSE (includes amort of debt fees) 44,657 289,067 -- DEPRECIATION -- -- -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 44,657 $ 289,067 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (39,090) $ 304,010 $ (53,434) INCOME TAXES -- 90,000 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (39,090) $ 214,010 $ (53,434) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,959,285 $ (397,743) $ 41,955,303 TOTAL COST OF REVENUES 1,952,293 (397,743) 37,736,127 GROSS PROFIT $ 1,006,992 $ -- $ 4,219,176 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 68,229 $ -- 948,781 Insiders Compensation -- -- 470,408 Professional Fees -- -- 2,141,012 Other (Earnings in Joint Venture) -- -- 67,576 TOTAL OPERATING EXPENSE $ 68,229 $ -- $ 3,627,777 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 938,763 $ -- 591,399 INTEREST EXPENSE (includes amort of debt fees) 558,861 -- 4,169,945 DEPRECIATION 327,282 -- 2,187,306 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 886,143 $ -- $ 6,357,251 ================================================================================================================= NET INCOME BEFORE TAXES $ 52,620 $ -- $ (5,765,852) INCOME TAXES -- -- 93,738 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 52,620 $ -- $ (5,859,590) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11
CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE - ----------------- --------- --------- --------- -------- ---------- --------- ---------- ---------- 1. CASH-BEGINNING OF MONTH 100 100 100 100 100 100 100 100 ========= ========= ========= ========= ========== ========= ========== ========== RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 67,591 72,867 87,682 73,641 67,412 88,389 58,858 1,083,377 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) 847,203 1,280,599 1,313,248 1,241,366 1,175,984 1,104,650 1,148,570 21,710,731 --------- --------- --------- --------- ---------- --------- --------- ---------- TOTAL RECEIPTS 914,795 1,353,466 1,400,931 1,315,008 1,243,396 1,193,039 1,207,428 22,794,107 --------- --------- --------- --------- ---------- --------- --------- ---------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A ========= ========= ========= ========= ========== ========= ========= ========== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES 847,203 1,280,599 1,313,248 1,241,366 1,175,984 1,104,650 1,148,570 19,710,731 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) 67,591 72,867 87,682 73,641 67,412 88,389 58,858 3,083,377 --------- --------- --------- --------- ---------- --------- --------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS 914,795 1,353,466 1,400,931 1,315,008 1,243,396 1,193,039 1,207,428 22,794,107 ========= ========= ========= ========= ========== ========= ========= ========== 19. PROFESSIONAL FEES -- -- -- -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- --------- --------- --------- --------- ---------- --------- --------- ---------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- --------- --------- --------- --------- ---------- --------- --------- ---------- TOTAL DISBURSEMENTS 914,795 1,353,434 1,400,931 1,315,008 1,243,396 1,193,039 1,207,428 22,794,107 ========= ========= ========= ========= ========== ========= ========= ========== 22. NET CASH FLOW -- -- -- -- -- -- -- -- 23. CASH - END OF MONTH (MOR-2) 100 100 100 100 100 100 100 100
MOR-7 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE ---------- --------- ---------- --------- ---------- ---------- ------------- ----------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- -- -- -- -- 401(k) Plan Refund -- -- -- -- -- -- -- -- Cobra Insurance Payment -- -- -- -- -- -- -- -- Dividend -- -- -- -- -- -- -- 2,000,000 Royalty Owners Trust Account -- -- -- -- -- -- -- -- Emission Credits -- -- -- -- -- -- -- -- Intercompany Funding 847,203 1,280,599 1,313,248 1,241,366 1,175,984 1,104,650 1,148,570 19,710,731 -- -- -- -- ---------- --------- ---------- --------- ---------- ---------- ------------- ----------- TOTAL OTHER RECEIPTS 847,203 1,280,599 1,313,248 1,241,366 1,175,984 1,104,650 1,148,570 21,710,731 ========== ========= ========== ========= ========== ========== ============= =========== 18. OTHER DISBURSEMENTS: Lease Operating Expense -- -- -- -- -- -- -- -- Workover Expense -- -- -- -- -- -- -- -- Capital Expenditures -- -- -- -- -- -- -- -- Revenue & Royalties -- -- -- -- -- -- -- -- Interest Payment -- -- -- -- -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- -- -- -- -- Severance tax -- -- -- -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- -- -- -- -- Revolver payment to CIT 67,591 72,867 87,682 73,641 67,412 88,389 58,858 3,083,377 -- -- ---------- --------- ---------- --------- ---------- ---------- ------------- ----------- TOTAL OTHER DISBURSEMENTS 67,591 72,867 87,682 73,641 67,412 88,389 58,858 3,083,377 ========== ========= ========== ========= ========== ========== ============= ===========
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 FOR THE PERIOD 10/01/02 - 10/31/02
CASH RECEIPTS AND Chase Chase DISBURSEMENTS 00103317203 00101818459 - ----------------- -------------- ----------- ------------ ----------- 1. CASH-BEGINNING OF MONTH -- 100 -- -- ============== =========== ============ =========== RECEIPTS: 2. CASH SALES -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- 58,858 4. LOANS & ADVANCES (attach list) -- -- 5. SALE OF ASSETS -- -- 6. OTHER (attach list) 1,148,570 -- -- -------------- ----------- ------------ ----------- TOTAL RECEIPTS 1,148,570 58,858 -- -- -------------- ----------- ------------ ----------- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A ============== =========== ============ =========== DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- 8. PAYROLL TAXES PAID -- -- 9. SALES, USE & OTHER TAXES PAID -- -- 10. SECURED/RENTAL/LEASES -- -- 11. UTILITIES 1,148,570 -- 12. INSURANCE -- -- 13. INVENTORY PURCHASES -- -- 14. VEHICLE EXPENSES -- -- 15. TRAVEL & ENTERTAINMENT -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 17. ADMINISTRATIVE & SELLING -- -- 18. OTHER (attach list) -- 58,858 -------------- ----------- ------------ ----------- TOTAL DISBURSEMENTS FROM OPERATIONS 1,148,570 58,858 -- -- ============== =========== ============ =========== 19. PROFESSIONAL FEES -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -------------- ----------- ------------ ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS 1,148,570 58,858 -- -- ============== =========== ============ =========== 22. NET CASH FLOW -- -- -- -- 23. CASH - END OF MONTH (MOR-2) -- 100 -- -- CASH RECEIPTS AND Total DISBURSEMENTS Debtor - ----------------- ------------ ----------- ------------- 1. CASH-BEGINNING OF MONTH -- -- 100 ============ =========== ============= RECEIPTS: 2. CASH SALES -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 58,858 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 1,148,570 ------------ ----------- ------------- TOTAL RECEIPTS -- -- 1,207,428 ------------ ----------- ------------- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A ============ =========== ============= DISBURSEMENTS: 7. NET PAYROLL -- -- -- 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID -- 10. SECURED/RENTAL/LEASES -- 11. UTILITIES 1,148,570 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING -- 18. OTHER (attach list) 58,858 ------------ ----------- ------------- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- 1,207,428 ============ =========== ============= 19. PROFESSIONAL FEES -- -- -- 20. U.S. TRUSTEE FEES -- -- -- ------------ ----------- ------------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- TOTAL DISBURSEMENTS -- -- 1,207,428 ============ =========== ============= 22. NET CASH FLOW -- -- -- 23. CASH - END OF MONTH (MOR-2) -- -- 100
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 FOR THE PERIOD 10/01/02 - 10/31/02
OTHER CASH RECEIPTS AND Chase Chase Total DISBURSEMENTS: 00103317203 00101818459 Debtor - -------------- ------------ ------------ ------------ 6. OTHER RECEIPTS: Interest Income -- -- -- 401(k) Plan Refund -- -- -- Cobra Insurance Payment -- -- -- Dividend -- -- -- Royalty Owners Trust Account -- -- Emission Credits -- -- -- Intercompany Transfer 1,148,570 -- 1,148,570 ------------ --------- ------------ TOTAL OTHER RECEIPTS 1,148,570 -- 1,148,570 ============ ========= ============ 18. OTHER DISBURSEMENTS: Lease Operating Expenses -- Workover Expense -- Capital Expenditures -- -- -- Revenue & Royalties -- Interest Payment -- -- -- Restricted Cash - Bond Funding -- -- -- Severance tax -- Pre-petition checks voided in current period -- -- -- CIT Revolver Payments -- 58,858 58,858 ------------ --------- ------------ TOTAL OTHER DISBURSEMENTS -- 58,858 58,858 ============ ========= ============
MOR-7 ATTACHMENT CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H-11 CASH ACCOUNT RECONCILIATION MONTH OF OCTOBER 2002
BANK NAME Chase Bk of TX Chase Bk of TX ACCOUNT NUMBER 00103317203 00101818459 ACCOUNT TYPE Concentration Concentration TOTAL - -------------- ---------------- --------------- ----------- BANK BALANCE $ -- $ 100 $ 100 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER -- ---------------- --------------- ----------- ADJUSTED BANK BALANCE $ -- $ 100 $ 100 ================ =============== =========== BEGINNING CASH - PER BOOKS $ -- $ 100 $ 100 RECEIPTS 58,858 58,858 TRANSFERS BETWEEN ACCOUNTS 1,148,570 1,148,570 (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (1,148,570) (58,858) (1,207,428) ---------------- --------------- ----------- ENDING CASH - PER BOOKS $ -- $ 100 $ 100 ================ =============== ===========
MOR-8 CASE NAME: STERLING CHEMICALS ENERGY, INC. CASE NUMBER: 01-37807-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE(2) Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 DATE - ----------------------------------- -------- -------- -------- -------- --------- -------- -------- --------- 1 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2 -- -- -- -- -- -- -- -- 3 -- -- -- -- -- -- -- -- 4 -- -- -- -- -- -- -- -- 5 -- -- -- -- -- -- -- -- 6 -- -- -- -- -- -- -- -- 7 -- -- -- -- -- -- -- -- 8 -- -- -- -- -- -- -- -- 9 -- -- -- -- -- -- -- -- -------- -------- -------- -------- --------- -------- -------- -------- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======== ========= ======== ======== ========
PROFESSIONALS FILING TO NAME/ORDER DATE Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 DATE --------------- -------- -------- -------- -------- --------- -------- -------- --------- 1 $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2 -- -- -- -- -- -- -- -- 3 -- -- -- -- -- -- -- -- 4 -- -- -- -- -- -- -- -- 5 -- -- -- -- -- -- -- -- 6 -- -- -- -- -- -- -- -- -------- -------- -------- ------- --------- -------- -------- --------- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- ======== ======== ======== ======= ========= ======== ======== =========
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES ; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.4 6 h01651exv99w4.txt MONTHLY OPERATING REPORT-STERLING FIBERS, INC. EXHIBIT 99.4 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING FIBERS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37808-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: OCTOBER YEAR: 2002
MONTH 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 Revised - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $1,707,430 $1,769,204 $ 1,693,508 $ 1,861,900 $ 1,528,346 $ 1,320,224 $ 1,605,316 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (127,852) $ (180,394) $ (511,621) $ (513,676) $ (689,028) $ 2,155,982 $ (306,126) NET INCOME (LOSS) (MOR-6) $ (789,902) $ (842,445) $(1,173,671) $(1,175,772) $(1,351,033) $(3,837,151) $(1,030,096) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- -- TOTAL DISBURSEMENTS (MOR-7)(1) $3,182,878 $2,867,783 $ 2,703,564 $ 3,117,479 $ 2,784,317 $ 2,919,796 $ 3,370,144 (1) Excludes intercompany transfers as follows: $ 230,000 $ 205,000 $ 190,000 $ 325,000 $ 205,000 $ 286,759 $ 290,000
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ----------------------------- ---- CASUALTY YES (x) NO ( ) 08 - 01 - 02 LIABILITY YES (x) NO ( ) 07 - 01 - 02 VEHICLE YES (x) NO ( ) 07 - 01 - 02 WORKER'S YES (x) NO ( ) 07 - 01 - 02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ---------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ---------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ---------------------------------------------- MOR-1 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 15 11/19/02 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 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 11/19/02
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 & 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 Munich RE: 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - FM Global, Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 et al. 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 $444,650 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 15 11/19/02
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 OCTOBER 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 $ 461 $ - $ 83 Trade accounts receivable, net - 56,863 60 2,586 Other Receivables - 1,254 - 1,999 Due from affiliates 1,375 27,999 13,957 - Inventories - 31,311 - 8,246 Prepaid expenses 33 6,617 - 186 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,505 14,017 13,100 Property, plant and equipment, net - 113,625 2,520 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,445 - Investments in Subs 35,060 94,735 - - Other assets 865 32,777 - 1,112 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 367,142 $ 21,982 $ 14,212 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 251 168,473 1,263 6,637 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 54,755 - 13,751 Secured - Other 469 Unsecured debt 186,538 256,134 1,110 67,942 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 (1,120) (60,895) 4,275 (17,053) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,752) (523,226) 19,609 (147,108) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,752) (525,763) 19,609 (147,108) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 367,142 $ 21,982 $ 14,212 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 99 $ - $ - Trade accounts receivable, net - 2,191 819 4,771 Other Receivables - - 32 - Due from affiliates 2,771 62,541 585 11,459 Inventories - - 100 1,445 Prepaid expenses - - - 144 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,771 64,831 1,536 17,819 Property, plant and equipment, net - - - 40,614 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,487 - Other assets - 1,230 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,771 $ 361,872 $ 3,023 $ 58,433 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 99 25,645 752 3,234 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 878 16,160 - - Secured - Other Unsecured debt 840 264,937 139 62,282 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 1,486 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,477) (4,824) (1,011) (10,087) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,698) (12,022) 2,132 (7,083) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,698) (12,022) 2,132 (7,083) TOTAL LIABILITIES AND EQUITY $ (2,771) $ 361,872 $ 3,023 $ 58,433 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 644 Trade accounts receivable, net - 67,290 Other Receivables - 3,285 Due from affiliates (120,082) 605 Inventories - 41,102 Prepaid expenses - 6,980 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (120,082) 119,906 Property, plant and equipment, net - 156,759 Deferred income taxes - - Investments-Third Party - 6,945 Investments in Subs (395,322) 31,771 Other assets (1) 35,983 -------------------------------- TOTAL ASSETS $(515,405) $ 351,364 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (51,651) 154,703 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (14,651) 70,893 Secured - Other 469 Unsecured debt (133,310) 706,612 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 (53,899) (559,739) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (94,192) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (53,900) (901,048) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (53,900) (903,585) TOTAL LIABILITIES AND EQUITY $(515,405) $ 351,364 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
-------------------------------------------------------------------------------- 4/30/02 5/31/02 6/30/02 7/31/01 8/31/02 9/30/02 10/31/02 -------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 6,168 $ 6,443 $ 6,794 $ 6,905 $ 7,167 $ 6,371 $ 6,337 ROYALTY AND REVENUE PAYABLE -- -- NOTES PAYABLE - INSURANCE -- -- TAX PAYABLE: Federal Payroll Taxes -- -- State Payroll & Sales (1) (2) (3) (4) (4) -- -- Ad Valorem Taxes -- -- -- Other Taxes 245 270 295 320 345 320 300 TOTAL TAXES PAYABLE $ 244 $ 268 $ 292 $ 316 341 $ 320 $ 300 SECURED DEBT POST-PETITION -- -- -- ACCRUED INTEREST PAYABLE -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs -- -- -- 2. Lease Operating Expenses/Capital -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 6,412 $ 6,711 $ 7,086 $ 7,221 $ 7,508 $ 6,691 $ 6,637 =======================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH OCTOBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 52,119 $ 52,119 $ -- $ -- $ -- $ -- 31-60 546 546 -- -- -- -- 61-90 352 352 -- -- -- -- 91 + 30,046 30,046 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 83,063 $ 83,063 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 OCTOBER 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) $ -- $ 36,364,891 $ 203,142 $ 1,605,316 TOTAL COST OF REVENUES -- 33,726,485 203,142 1,732,546 GROSS PROFIT $ -- $ 2,638,406 $ -- $ (127,230) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 31,112 $ 514,746 $ -- $ 178,896 Insiders Compensation -- 470,408 -- -- Professional Fees -- 2,141,012 -- -- Other (Earnings in Joint Venture) -- 133,674 (66,098) -- TOTAL OPERATING EXPENSE $ 31,112 $ 3,259,840 $ (66,098) $ 178,896 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (31,112) $ (621,434) $ 66,098 $ (306,126) INTEREST EXPENSE (includes amort of debt fees) -- 2,553,390 -- 723,970 DEPRECIATION -- 1,860,024 -- -- OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,413,414 $ -- $ 723,970 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (31,112) $ (5,034,848) $ 66,098 $ (1,030,096) INCOME TAXES -- -- 3,738 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (31,112) $ (5,034,848) $ 62,360 $ (1,030,096) ==================================================================================================================================== 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) $ 10,000 $ 851,790 $ 358,662 TOTAL COST OF REVENUES -- 33,247 486,157 GROSS PROFIT $ 10,000 $ 818,543 $ (127,535) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 4,433 $ 225,466 $ (74,101) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 4,433 $ 225,466 $ (74,101) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 5,567 $ 593,077 $ (53,434) INTEREST EXPENSE (includes amort of debt fees) 44,657 289,067 -- DEPRECIATION -- -- -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 44,657 $ 289,067 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (39,090) $ 304,010 $ (53,434) INCOME TAXES -- 90,000 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (39,090) $ 214,010 $ (53,434) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,959,285 $ (397,743) $ 41,955,303 TOTAL COST OF REVENUES 1,952,293 (397,743) 37,736,127 GROSS PROFIT $ 1,006,992 $ -- $ 4,219,176 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 68,229 $ -- 948,781 Insiders Compensation -- -- 470,408 Professional Fees -- -- 2,141,012 Other (Earnings in Joint Venture) -- -- 67,576 TOTAL OPERATING EXPENSE $ 68,229 $ -- $ 3,627,777 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 938,763 $ -- 591,399 INTEREST EXPENSE (includes amort of debt fees) 558,861 -- 4,169,945 DEPRECIATION 327,282 -- 2,187,306 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 886,143 $ -- $ 6,357,251 ================================================================================================================= NET INCOME BEFORE TAXES $ 52,620 $ -- $ (5,765,852) INCOME TAXES -- -- 93,738 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 52,620 $ -- $ (5,859,590) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11
CASH RECEIPTS AND DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 - ----------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 167,642 $ 151,768 $ 155,565 $ 120,211 ------------ ------------ ------------ ------------ RECEIPTS: 2. CASH SALES -- $ -- $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,655,125 1,652,762 1,514,756 1,840,100 4. LOANS & ADVANCES (attach list) -- -- -- -- 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 1,741,879 1,423,818 1,343,454 1,620,968 TOTAL RECEIPTS $ 3,397,004 $ 3,076,580 $ 2,858,210 $ 3,461,068 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 184,218 $ 146,485 $ 144,066 $ 211,714 8. PAYROLL TAXES PAID 71,168 56,463 56,059 62,035 9. SALES, USE & OTHER TAXES PAID 3,914 1,958 2,976 1,618 10. SECURED/RENTAL/LEASES -- -- -- -- 11. UTILITIES 223,466 193,003 153,563 169,922 12. INSURANCE -- -- -- -- 13. INVENTORY PURCHASES 192,570 224,244 149,137 178,957 14. VEHICLE EXPENSES -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- 6,019 3,207 2,903 16. REPAIRS, MAINTENANCE & SUPPLIES 48,832 88,852 67,749 54,578 17. ADMINISTRATIVE & SELLING 2,775 2,775 -- -- 18. OTHER (attach list) 2,685,999 2,352,984 2,316,805 2,760,752 TOTAL DISBURSEMENTS FROM OPERATIONS $ 3,412,878 $ 3,072,783 $ 2,893,564 $ 3,442,479 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES -- -- (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 3,412,878 $ 3,072,783 $ 2,893,564 $ 3,442,479 22. NET CASH FLOW $ (15,874) $ 3,797 $ (35,353) $ 18,589) 23. CASH - END OF MONTH (MOR-2) $ 151,768 $ 155,565 $ 120,211 $ 138,800 CASH RECEIPTS AND FILING TO DISBURSEMENTS Aug-02 Sep-02 Oct-02 DATE - ----------------- ------------ ------------ ------------ ------------ 1. CASH-BEGINNING OF MONTH $ 138,799 $ 332,776 $ 145,055 $ 714,483 ------------ ------------ ------------ ------------ RECEIPTS: 2. CASH SALES -- $ -- -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE $ 1,676,623 1,438,622 1,683,596 28,593,514 4. LOANS & ADVANCES (attach list) -- -- -- -- 5. SALE OF ASSETS -- -- -- -- 6. OTHER (attach list) 1,506,670 1,580,212 1,914,215 22,288,808 TOTAL RECEIPTS $ 3,183,293 $ 3,018,835 $ 3,597,811 $ 50,882,322 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ 147,781 $ 148,439 $ 181,926 $ 2,762,398 8. PAYROLL TAXES PAID 85,461 53,739 68,941 1,086,480 9. SALES, USE & OTHER TAXES PAID 759 -- -- 22,829 10. SECURED/RENTAL/LEASES -- -- -- 4,486 11. UTILITIES 227,707 214,934 179,333 2,951,088 12. INSURANCE $ -- -- -- 280,148 13. INVENTORY PURCHASES 133,635 208,379 335,814 2,406,514 14. VEHICLE EXPENSES -- -- -- -- 15. TRAVEL & ENTERTAINMENT 1,474 21,893 21,065 106,271 16. REPAIRS, MAINTENANCE & SUPPLIES 69,027 47,811 91,080 938,844 17. ADMINISTRATIVE & SELLING -- -- -- 15,521 18. OTHER (attach list) 2,323,473 2,511,360 2,781,986 40,939,502 TOTAL DISBURSEMENTS FROM OPERATIONS $ 2,989,317 $ 3,206,555 $ 3,660,144 $ 51,514,081 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- 20. U.S. TRUSTEE FEES -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- TOTAL DISBURSEMENTS $ 2,989,317 $ 3,206,555 $ 3,660,144 $ 51,514,081 22. NET CASH FLOW $ 193,976 $ (187,720) $ (62,333) $ (631,759) 23. CASH - END OF MONTH (MOR-2) $ 332,776 $ 145,055 $ 82,722 $ 82,724
MOR-7 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: Apr-02 May-02 Jun-02 Jul-02 Aug-02 ----------------------- ------------- ---------- ---------- ---------- ---------- 6. OTHER RECEIPTS: Interest Income $ 13,960.67 $ -- -- $ -- -- 401(k) Plan Refund -- -- -- -- -- Cobra Insurance Payment 3,398 2,886 2,640 4,426 2,670 Miscellaneous 70,520 8,931 15,814 5,542 -- Royalty Owners Trust Account -- -- -- -- -- Emission Credits -- -- -- -- -- Intercompany Transfers 1,424,000 1,412,000 1,324,000 1,286,000 1,504,000 Account Transfers 230,000 -- -- 325,000 -- TOTAL OTHER RECEIPTS $ 1,741,879 $1,423,818 $1,342,454 $1,620,968 $1,506,670 18. OTHER DISBURSEMENTS: Lease Operating Expense $ -- $ -- -- -- -- Workover Expense -- -- -- -- -- Capital Expenditures -- -- -- -- -- Revenue & Royalties -- -- -- -- -- Interest Payment -- -- -- -- -- Employee Benefits 27,032 26,130 25,870 25,249 38,064 Severance tax -- -- -- -- -- Pre-petition checks voided in current period -- -- -- -- -- Insiders -- -- -- -- -- Restricted Cash Transactions -- -- -- -- -- Contract Services 434,528 554,635 429,682 377,737 550,603 Licenses / Fees / Permits 25 14,615 10,257 82 -- Freight 67,647 83,977 79,432 70,833 101,453 Account Transfers 230,000 205,000 190,000 325,000 205,000 Outstanding checks to Balance to G/L 195,350 (193,585) 23,441 78,719 (28,417) CIT Revolver Payments 1,734,416 1,662,211 1,558,123 1,883,133 1,456,770 TOTAL OTHER DISBURSEMENTS $ 2,688,999 $2,352,984 $2,316,805 $2,760,753 $2,323,473
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Sep-02 Oct-02 DATE ----------------------- ---------- ---------- ----------- 6. OTHER RECEIPTS: Interest Income -- $ -- $ 14,505 401(k) Plan Refund -- -- -- Cobra Insurance Payment 3,564 3,215 54,473 Miscellaneous 20,890 -- 292,670 Royalty Owners Trust Account -- -- -- Emission Credits -- -- -- Intercompany Transfers 96,759 1,911,000 19,202,159 Account Transfers 1,459,000 -- 2,724,000 TOTAL OTHER RECEIPTS $1,580,212 $1,914,215 $22,287,808 18. OTHER DISBURSEMENTS: Lease Operating Expense -- $ -- $ -- Workover Expense -- -- -- Capital Expenditures -- -- 17,812 Revenue & Royalties -- -- 10,150 Interest Payment -- -- -- Employee Benefits 25,546 26,633 439,708 Severance tax -- -- -- Pre-petition checks voided in current period -- -- (5,215) Insiders -- -- -- Restricted Cash Transactions -- -- -- Contract Services 479,439 498,842 2,687,610 Licenses / Fees / Permits 604 19 36,051 Freight 59,625 77,078 511,018 Account Transfers 286,759 290,000 1,103,386 Outstanding checks to Balance to G/L 20,816 100,949 (313,366) CIT Revolver Payments 1,638,572 1,788,466 14,473,592 TOTAL OTHER DISBURSEMENTS $2,511,360 $2,781,986 $18,960,747
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 OCTOBER 2002
CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS 00100547117 00103316965 103405768 630181003508 ----------------- ----------- ------------- ----------- ------------- 1. CASH-BEGINNING OF MONTH $ 13,155.28 $ 403.26 $ 13,648.27 $ 0.00 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 $ 0.00 $ 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 320,239.06 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 0.00 1,621,000.00 290,000.00 0.00 TOTAL RECEIPTS $320,239.06 $1,621,000.00 $290,000.00 $ 0.00 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ $181,925.55 $ 8. PAYROLL TAXES PAID 68,940.55 9. SALES, USE & OTHER TAXES PAID 10. SECURED/RENTAL/LEASES 11. UTILITIES 179,333.33 12. INSURANCE 13. INVENTORY PURCHASES 335,813.56 14. VEHICLE EXPENSES 15. TRAVEL & ENTERTAINMENT 21,064.67 16. REPAIRS, MAINTENANCE & SUPPLIES 91,080.49 17. ADMINISTRATIVE & SELLING 18. OTHER (attach list) 333,294.34 993,520.18 0.00 0.00 TOTAL DISBURSEMENTS FROM OPERATIONS $333,294.34 $1,620,812.23 $250,866.10 $ 0.00 19. PROFESSIONAL FEES $ 0.00 $ 0.00 $ 0.00 $ 0.00 20. U.S. TRUSTEE FEES 0.00 0.00 0.00 0.00 21. OTHER REORGANIZATION EXPENSES (attach list) 0.00 0.00 0.00 0.00 TOTAL DISBURSEMENTS $333,294.34 $1,620,812.23 $250,866.10 $ 0.00 22. NET CASH FLOW $-13,055.28 $ 187.77 $ 39,133.90 $ 0.00 23. CASH - END OF MONTH (MOR-2) $ 100.00 $ 591.03 $ 52,782.17 $ 0.00 CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS 5577659 1171987307 DATE ----------------- ------------- --------------- ------------- 1. CASH-BEGINNING OF MONTH $ 116,848.31 $ 1,000.00 145,055.12 RECEIPTS: 2. CASH SALES $ 0.00 $ 0.00 0.00 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,363,356.67 1,683,595.73 4. LOANS & ADVANCES (attach list) 0.00 5. SALE OF ASSETS 0.00 6. OTHER (attach list) 3,215.42 0.00 1,914,215.42 TOTAL RECEIPTS $1,366,572.09 $ 0.00 3,597,811.15 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ 181,925.55 8. PAYROLL TAXES PAID 68,940.55 9. SALES, USE & OTHER TAXES PAID 0.00 10. SECURED/RENTAL/LEASES 0.00 11. UTILITIES 179,333.33 12. INSURANCE 0.00 13. INVENTORY PURCHASES 335,813.56 14. VEHICLE EXPENSES 0.00 15. TRAVEL & ENTERTAINMENT 21,064.67 16. REPAIRS, MAINTENANCE & SUPPLIES 91,080.49 17. ADMINISTRATIVE & SELLING 0.00 18. OTHER (attach list) 1,455,171.68 0.00 2,781,986.20 TOTAL DISBURSEMENTS FROM OPERATIONS $1,455,171.68 $ 0.00 3,660,144.35 19. PROFESSIONAL FEES $ 0.00 $ 0.00 0.00 20. U.S. TRUSTEE FEES 0.00 0.00 0.00 21. OTHER REORGANIZATION EXPENSES (attach list) 0.00 0.00 0.00 TOTAL DISBURSEMENTS $1,455,171.68 $ 0.00 3,660,144.35 22. NET CASH FLOW $ -88,599.59 $ 0.00 -62,333.20 23. CASH - END OF MONTH (MOR-2) $ 28,248.72 $ 1,000.00 82,721.92
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H3-11 OCTOBER 2002
OTHER CASH RECEIPTS AND Chase Chase Chase Chase DISBURSEMENTS: 00100547117 00103316965 103405768 630181003508 ----------------------- ----------- ----------- ----------- -------------- 6. OTHER RECEIPTS: Interest Income 401(k) Plan Refund Cobra Insurance Payment Miscellaneous Royalty Owners Trust Account Emission Credits Intercompany Transfers 1,621,000.00 290,000.00 Account Transfers TOTAL OTHER RECEIPTS $ 0.00 $1,621,000.00 $ 290,000.00 $ 0.00 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures Revenue & Royalties Interest Payment Employee Benefits 26,633.02 Severance tax Pre-petition checks voided in current period Insiders Restricted Cash Transactions Contract Services 498,842.00 Licenses / Fees / Permits 18.75 Freight 77,077.69 Account Transfers 290,000.00 Outstanding checks to Balance to G/L 100,948.72 CIT Revolver Payments 333,294.34 TOTAL OTHER DISBURSEMENTS $333,294.34 $ 993,520.18 $ 0.00 $ 0.00 OTHER CASH RECEIPTS AND Bank One Bank of America FILING TO DISBURSEMENTS: 5577659 1171987307 DATE ----------------------- ---------------------------------------------------- 6. OTHER RECEIPTS:$ 13 Interest Income $ 0.00 401(k) Plan Refund 0.00 Cobra Insurance Payment 3,215.42 3,215.42 Miscellaneous 0.00 Royalty Owners Trust Account 0.00 Emission Credits Intercompany Transfers 1,911,000.00 Account Transfers 0.00 TOTAL OTHER RECEIPTS $ 3,215.42 $ 0.00 $1,914,215.42 18. OTHER DISBURSEMENTS: Lease Operating Expense $ 0.00 Workover Expense 0.00 Capital Expenditures 0.00 Revenue & Royalties 0.00 Interest Payment 0.00 Employee Benefits 26,633.02 Severance tax 0.00 Pre-petition checks voided in current period 0.00 Insiders 0.00 Restricted Cash Transactions 0.00 Contract Services 498,842.00 Licenses / Fees / Permits 18.75 Freight 77,077.69 Account Transfers 290,000.00 Outstanding checks to Balance to G/L 100,948.72 CIT Revolver Payments $1,455,171.68 1,788,466.02 TOTAL OTHER DISBURSEMENTS $1,455,171.68 $ 0.00 2,781,986.20
MOR-7 ATTACHMENT CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H-11 CASH ACCOUNT RECONCILIATION MONTH OF OCTOBER 2002
BANK NAME Chase Bk of TX Bank One Bank of America Chase Bk of TX Chase Bk of TX Chase Bk of Del ACCOUNT NUMBER 00103316965 5577659 0011 7198 7307 00103405768 00100547117 630181003508 ACCOUNT TYPE AP Trade Lockbox Petty Cash Payroll AR Wires Contr. Disb. - -------------- -------------- ------------ ---------------- -------------- --------------- --------------- BANK BALANCE $ 591 $ 28,249 $ 1,000 $ 52,782 $ 100 $ -- DEPOSIT IN TRANSIT OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 591 $ 28,249 $ 1,000 $ 52,782 $ 100 $ -- ================================================================================================================================= BEGINNING CASH - PER BOOKS $ 403 $ 116,848 $ 1,000 $ 13,648 $ 13,155 $ -- RECEIPTS 1,366,572 320,239 TRANSFERS BETWEEN ACCOUNTS 1,331,000 290,000 (WITHDRAWAL) CONTRIBUTION- BY INDIVIDUAL DEBTOR MFR-2 CHECKS/OTHER DISBURSEMENTS (1,330,812) (1,455,172) (250,866) (333,294) ENDING CASH - PER BOOKS $ 591 $ 28,249 $ 1,000 $ 52,782 $ 100 $ -- ================================================================================================================================= BANK NAME ACCOUNT NUMBER ACCOUNT TYPE TOTAL - -------------- ----------- BANK BALANCE $ 82,722 DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 82,722 =========================================== BEGINNING CASH - PER BOOKS $ 145,055 RECEIPTS 1,686,811 TRANSFERS BETWEEN ACCOUNTS 1,621,000 (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (3,370,144) ENDING CASH - PER BOOKS $ 82,722 ===========================================
MOR-8 CASE NAME: STERLING FIBERS, INC. CASE NUMBER: 01-37808-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 DATE - ------------------------------------- --------- -------- -------- -------- -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 DATE --------------- --------- -------- -------- -------- -------- -------- --------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES ; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.5 7 h01651exv99w5.txt MONTHLY OPERATING REPORT-STERLING CHEMICALS INT'L. EXHIBIT 99.5 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37809-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: OCTOBER YEAR: 2002
7/31/02 MONTH 4/30/02 5/31/02 6/30/02 (revised) 8/31/02 9/30/02 10/31/02 - --------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ 83,333 $ (789,313) $ 10,000 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 77,397 $ 67,212 $ 83,333 $ 72,681 $ 83,333 $ (798,223) $ 5,567 NET INCOME (LOSS) (MOR-6) $ 16,732 $ 6,547 $ 22,668 $ 12,016 $ 22,668 $(3,113,859) $(39,090) PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- (1) Excludes intercompany transfers as follows: $ -- $ -- $ -- $ -- $ -- $ -- $ --
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ----------------------------- CASUALTY YES (x) NO ( ) 08-01-02 LIABILITY YES (x) NO ( ) 07-01-02 VEHICLE YES (x) NO ( ) 07-01-02 WORKER'S YES (x) NO ( ) 07-01-02 OTHER YES (x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ----------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN ------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO ------------------------------------------- MOR-1 CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 13 11/19/02 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 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 13 11/19/02
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 & 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 Munich Re: 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - FM Global, 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 $444,650 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 13 11/19/02
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 OCTOBER 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 $ 461 $ - $ 83 Trade accounts receivable, net - 56,863 60 2,586 Other Receivables - 1,254 - 1,999 Due from affiliates 1,375 27,999 13,957 - Inventories - 31,311 - 8,246 Prepaid expenses 33 6,617 - 186 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,505 14,017 13,100 Property, plant and equipment, net - 113,625 2,520 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,445 - Investments in Subs 35,060 94,735 - - Other assets 865 32,777 - 1,112 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 367,142 $ 21,982 $ 14,212 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 251 168,473 1,263 6,637 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 54,755 - 13,751 Secured - Other 469 Unsecured debt 186,538 256,134 1,110 67,942 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 (1,120) (60,895) 4,275 (17,053) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,752) (523,226) 19,609 (147,108) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,752) (525,763) 19,609 (147,108) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 367,142 $ 21,982 $ 14,212 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 99 $ - $ - Trade accounts receivable, net - 2,191 819 4,771 Other Receivables - - 32 - Due from affiliates 2,771 62,541 585 11,459 Inventories - - 100 1,445 Prepaid expenses - - - 144 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,771 64,831 1,536 17,819 Property, plant and equipment, net - - - 40,614 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,487 - Other assets - 1,230 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,771 $ 361,872 $ 3,023 $ 58,433 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 99 25,645 752 3,234 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 878 16,160 - - Secured - Other Unsecured debt 840 264,937 139 62,282 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 1,486 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,477) (4,824) (1,011) (10,087) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,698) (12,022) 2,132 (7,083) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,698) (12,022) 2,132 (7,083) TOTAL LIABILITIES AND EQUITY $ (2,771) $ 361,872 $ 3,023 $ 58,433 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 644 Trade accounts receivable, net - 67,290 Other Receivables - 3,285 Due from affiliates (120,082) 605 Inventories - 41,102 Prepaid expenses - 6,980 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (120,082) 119,906 Property, plant and equipment, net - 156,759 Deferred income taxes - - Investments-Third Party - 6,945 Investments in Subs (395,322) 31,771 Other assets (1) 35,983 -------------------------------- TOTAL ASSETS $(515,405) $ 351,364 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (51,651) 154,703 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (14,651) 70,893 Secured - Other 469 Unsecured debt (133,310) 706,612 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 (53,899) (559,739) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (94,192) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (53,900) (901,048) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (53,900) (903,585) TOTAL LIABILITIES AND EQUITY $(515,405) $ 351,364 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------- 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30 10/31/02 ----------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- ROYALTY AND REVENUE PAYABLE NOTES PAYABLE TAX PAYABLE: Federal Payroll Taxes State Payroll & Sales Ad Valorem Taxes Other Taxes TOTAL TAXES PAYABLE $ -- $ -- $ -- $ -- $ -- $ -- $ -- SECURED DEBT POST-PETITION ACCRUED INTEREST PAYABLE *ACCRUED PROFESSIONAL FEES: OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 2. Lease Operating Expenses/Capital TOTAL POST-PETITION LIABILITIES (MOR-3) $ -- $ -- $ -- $ -- $ -- $ --- $ -- =====================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH OCTOBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 52,119 $ 52,119 $ -- $ -- $ -- $ -- 31-60 546 546 -- -- -- -- 61-90 352 352 -- -- -- -- 91 + 30,046 30,046 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 83,063 $ 83,063 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 OCTOBER 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) $ -- $ 36,364,891 $ 203,142 $ 1,605,316 TOTAL COST OF REVENUES -- 33,726,485 203,142 1,732,546 GROSS PROFIT $ -- $ 2,638,406 $ -- $ (127,230) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 31,112 $ 514,746 $ -- $ 178,896 Insiders Compensation -- 470,408 -- -- Professional Fees -- 2,141,012 -- -- Other (Earnings in Joint Venture) -- 133,674 (66,098) -- TOTAL OPERATING EXPENSE $ 31,112 $ 3,259,840 $ (66,098) $ 178,896 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (31,112) $ (621,434) $ 66,098 $ (306,126) INTEREST EXPENSE (includes amort of debt fees) -- 2,553,390 -- 723,970 DEPRECIATION -- 1,860,024 -- -- OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,413,414 $ -- $ 723,970 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (31,112) $ (5,034,848) $ 66,098 $ (1,030,096) INCOME TAXES -- -- 3,738 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (31,112) $ (5,034,848) $ 62,360 $ (1,030,096) ==================================================================================================================================== 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) $ 10,000 $ 851,790 $ 358,662 TOTAL COST OF REVENUES -- 33,247 486,157 GROSS PROFIT $ 10,000 $ 818,543 $ (127,535) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 4,433 $ 225,466 $ (74,101) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 4,433 $ 225,466 $ (74,101) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 5,567 $ 593,077 $ (53,434) INTEREST EXPENSE (includes amort of debt fees) 44,657 289,067 -- DEPRECIATION -- -- -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 44,657 $ 289,067 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (39,090) $ 304,010 $ (53,434) INCOME TAXES -- 90,000 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (39,090) $ 214,010 $ (53,434) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,959,285 $ (397,743) $ 41,955,303 TOTAL COST OF REVENUES 1,952,293 (397,743) 37,736,127 GROSS PROFIT $ 1,006,992 $ -- $ 4,219,176 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 68,229 $ -- 948,781 Insiders Compensation -- -- 470,408 Professional Fees -- -- 2,141,012 Other (Earnings in Joint Venture) -- -- 67,576 TOTAL OPERATING EXPENSE $ 68,229 $ -- $ 3,627,777 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 938,763 $ -- 591,399 INTEREST EXPENSE (includes amort of debt fees) 558,861 -- 4,169,945 DEPRECIATION 327,282 -- 2,187,306 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 886,143 $ -- $ 6,357,251 ================================================================================================================= NET INCOME BEFORE TAXES $ 52,620 $ -- $ (5,765,852) INCOME TAXES -- -- 93,738 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 52,620 $ -- $ (5,859,590) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H-11 Chase Bank of Texas - #00100551903
CASH RECEIPTS AND FILING TO DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE - ----------------- --------- --------- ---------- --------- --------- --------- -------- ---------- 1. CASH-BEGINNING OF MONTH -- -- -- -- -- -- -- -- RECEIPTS: 2. CASH SALES -- -- -- -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE -- -- -- -- -- -- -- -- 4. LOANS & ADVANCES (attach list) -- -- -- -- -- -- -- -- 5. SALE OF ASSETS -- -- -- -- -- -- -- -- 6. OTHER (attach list) -- -- -- -- -- -- -- -- TOTAL RECEIPTS -- -- -- -- -- -- -- -- (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL -- -- -- -- -- -- -- -- 8. PAYROLL TAXES PAID -- -- -- -- -- -- -- -- 9. SALES, USE & OTHER TAXES PAID -- -- -- -- -- -- -- -- 10. SECURED/RENTAL/LEASES -- -- -- -- -- -- -- -- 11. UTILITIES -- -- -- -- -- -- -- -- 12. INSURANCE -- -- -- -- -- -- -- -- 13. INVENTORY PURCHASES -- -- -- -- -- -- -- -- 14. VEHICLE EXPENSES -- -- -- -- -- -- -- -- 15. TRAVEL & ENTERTAINMENT -- -- -- -- -- -- -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- -- -- -- -- -- -- 17. ADMINISTRATIVE & SELLING -- -- -- -- -- -- -- -- 18. OTHER (attach list) -- -- -- -- -- -- -- -- TOTAL DISBURSEMENTS FROM OPERATIONS -- -- -- -- -- -- -- -- 19. PROFESSIONAL FEES -- -- -- -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- -- -- -- TOTAL DISBURSEMENTS -- -- -- -- -- -- -- -- 22. NET CASH FLOW -- -- -- -- -- -- -- -- 23. CASH - END OF MONTH (MOR-2) -- -- -- -- -- -- -- --
MOR-7 CASE NAME: STERLING CHEMICALS INTERNATIONAL CASE NUMBER: 01-37809-H-11 Chase Bank of Texas - #00100551903
OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE ----------------------- --------- ---------- ---------- ---------- ---------- -------- -------- --------- 6. OTHER RECEIPTS: Interest Income -- -- -- -- 401(k) Plan Refund -- -- -- -- Cobra Insurance Payment -- -- -- -- Miscellaneous -- -- -- -- Royalty Owners Trust Account Emission Credits -- -- -- -- TOTAL OTHER RECEIPTS -- -- -- -- 18. OTHER DISBURSEMENTS: Lease Operating Expense Workover Expense Capital Expenditures -- -- -- -- Revenue & Royalties Interest Payment -- -- -- -- Restricted Cash - Bond Funding -- -- -- -- Severance Tax Pre-petition checks voided in current period -- -- -- -- TOTAL OTHER DISBURSEMENTS -- -- -- --
MOR-7 ATTACHMENT CASE NAME: Sterling Chemicals International, Inc. CASE NUMBER: 01-37809-H-11 CASH ACCOUNT RECONCILIATION MONTH OF OCTOBER 2002
BANK NAME Chase Bk of TX ACCOUNT NUMBER 00100551903 ACCOUNT TYPE Concentration TOTAL - ------------ -------------- ----- BANK BALANCE $ -- DEPOSIT IN TRANSIT -- OUTSTANDING CHECKS -- OTHER ADJUSTED BANK BALANCE $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- BEGINNING CASH - PER BOOKS $ -- RECEIPTS -- TRANSFERS BETWEEN ACCOUNTS -- (WITHDRAWAL) CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS -- ENDING CASH - PER BOOKS $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
MOR-8 CASE NAME: STERLING CHEMICALS INTERNATIONAL, INC. CASE NUMBER: 01-37809-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) Apr-2002 May-2002 Jun-02 Jul-2002 Aug-2002 Sep-2002 Oct-2002 DATE ------------------------------------- ----------- -------- -------- -------- -------- -------- -------- --------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS FILING TO NAME/ORDER DATE Apr-2002 May-2002 Jun-02 Jul-2002 Aug-2002 Sep-2002 Oct-2002 DATE --------------- -------- ---------- ---------- ---------- ---------- ---------- -------- ----------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.6 8 h01651exv99w6.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: OCTOBER YEAR: 2002
4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 MONTH Revised - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (MOR-6) $ 1,076,963 $ 1,059,266 $ 617,525 $ 938,666 $ 840,227 $ 727,811 $ 851,790 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ 765,999 $ 750,049 $ 326,174 $ 610,556 $ 526,004 $ 433,150 $ 593,077 NET INCOME (LOSS) (MOR-6) $ 101,602 $ 103,679 $ (338,175) $ (35,773) $ (120,330) $(5,663,630) $ 214,010 PAYMENTS TO INSIDERS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) $ -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $ 1,479,491 $ 1,387,906 $ 186,246 $1,019,169 $1,293,634 $ 191,230 $ 1,763,181 (1) Excludes intercompany transfers as follows: $ 647,602 $ -- $1,102,126 $ 746,935 $ 558,861 $ 1,039,861 $ 568,467
***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? YES If so, describe See Attached - -------------------------------------------------------------------------------- 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 16 11/19/02 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 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 16 11/19/02
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 & 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 Munich Re: FM 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - Global, 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 $444,650 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 16 11/19/02
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. ATTACHMENT 3 POSTPETITION PAYMENT OF PREPETITION LIABILITIES
VENDOR AMOUNT ORDER(1) STERLING CANADA, INC. CASE #01-37810-H4-11 Georgia Pacific 39,676.00 International Paper 40,120.00 ------------- TOTAL $ 79,796.00 =============
Payments were actually made in September 02 and were royalty rebates. STERLING CHEMICALS HOLDINGS, INC. (ALL DEBTORS) CONSOLIDATING BALANCE SHEET FOR THE PERIOD ENDED OCTOBER 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 $ 461 $ - $ 83 Trade accounts receivable, net - 56,863 60 2,586 Other Receivables - 1,254 - 1,999 Due from affiliates 1,375 27,999 13,957 - Inventories - 31,311 - 8,246 Prepaid expenses 33 6,617 - 186 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,505 14,017 13,100 Property, plant and equipment, net - 113,625 2,520 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,445 - Investments in Subs 35,060 94,735 - - Other assets 865 32,777 - 1,112 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 367,142 $ 21,982 $ 14,212 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 251 168,473 1,263 6,637 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 54,755 - 13,751 Secured - Other 469 Unsecured debt 186,538 256,134 1,110 67,942 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 (1,120) (60,895) 4,275 (17,053) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,752) (523,226) 19,609 (147,108) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,752) (525,763) 19,609 (147,108) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 367,142 $ 21,982 $ 14,212 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 99 $ - $ - Trade accounts receivable, net - 2,191 819 4,771 Other Receivables - - 32 - Due from affiliates 2,771 62,541 585 11,459 Inventories - - 100 1,445 Prepaid expenses - - - 144 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,771 64,831 1,536 17,819 Property, plant and equipment, net - - - 40,614 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,487 - Other assets - 1,230 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,771 $ 361,872 $ 3,023 $ 58,433 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 99 25,645 752 3,234 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 878 16,160 - - Secured - Other Unsecured debt 840 264,937 139 62,282 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 1,486 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,477) (4,824) (1,011) (10,087) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,698) (12,022) 2,132 (7,083) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,698) (12,022) 2,132 (7,083) TOTAL LIABILITIES AND EQUITY $ (2,771) $ 361,872 $ 3,023 $ 58,433 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 644 Trade accounts receivable, net - 67,290 Other Receivables - 3,285 Due from affiliates (120,082) 605 Inventories - 41,102 Prepaid expenses - 6,980 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (120,082) 119,906 Property, plant and equipment, net - 156,759 Deferred income taxes - - Investments-Third Party - 6,945 Investments in Subs (395,322) 31,771 Other assets (1) 35,983 -------------------------------- TOTAL ASSETS $(515,405) $ 351,364 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (51,651) 154,703 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (14,651) 70,893 Secured - Other 469 Unsecured debt (133,310) 706,612 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 (53,899) (559,739) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (94,192) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (53,900) (901,048) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (53,900) (903,585) TOTAL LIABILITIES AND EQUITY $(515,405) $ 351,364 ================================
* 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
--------------------------------------------------------------------------------------------- Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 --------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 305 $ 596 $ 218 $ 272 $ 369 $ 468 $ 982 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 24 18 8 14 13 7 $ 9 TOTAL TAXES PAYABLE $ 24 $ 18 $ 8 $ 14 $ 13 7 9 SECURED DEBT POST-PETITION -- -- -- ACCRUED INTEREST PAYABLE -- -- -- *ACCRUED PROFESSIONAL FEES: -- -- -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 50 70 90 110 15 2. Lease Operating Expenses/Capital -- -- -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 19,787 $ 20,093 $ 19,725 $ 19,804 $ 19,806 $ 19,884 $ 20,401 ====================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH OCTOBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 52,119 $ 52,119 $ -- $ -- $ -- $ -- 31-60 546 546 -- -- -- -- 61-90 352 352 -- -- -- -- 91 + 30,046 30,046 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 83,063 $ 83,063 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 OCTOBER 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) $ -- $ 36,364,891 $ 203,142 $ 1,605,316 TOTAL COST OF REVENUES -- 33,726,485 203,142 1,732,546 GROSS PROFIT $ -- $ 2,638,406 $ -- $ (127,230) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 31,112 $ 514,746 $ -- $ 178,896 Insiders Compensation -- 470,408 -- -- Professional Fees -- 2,141,012 -- -- Other (Earnings in Joint Venture) -- 133,674 (66,098) -- TOTAL OPERATING EXPENSE $ 31,112 $ 3,259,840 $ (66,098) $ 178,896 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (31,112) $ (621,434) $ 66,098 $ (306,126) INTEREST EXPENSE (includes amort of debt fees) -- 2,553,390 -- 723,970 DEPRECIATION -- 1,860,024 -- -- OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,413,414 $ -- $ 723,970 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (31,112) $ (5,034,848) $ 66,098 $ (1,030,096) INCOME TAXES -- -- 3,738 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (31,112) $ (5,034,848) $ 62,360 $ (1,030,096) ==================================================================================================================================== 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) $ 10,000 $ 851,790 $ 358,662 TOTAL COST OF REVENUES -- 33,247 486,157 GROSS PROFIT $ 10,000 $ 818,543 $ (127,535) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 4,433 $ 225,466 $ (74,101) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 4,433 $ 225,466 $ (74,101) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 5,567 $ 593,077 $ (53,434) INTEREST EXPENSE (includes amort of debt fees) 44,657 289,067 -- DEPRECIATION -- -- -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 44,657 $ 289,067 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (39,090) $ 304,010 $ (53,434) INCOME TAXES -- 90,000 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (39,090) $ 214,010 $ (53,434) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,959,285 $ (397,743) $ 41,955,303 TOTAL COST OF REVENUES 1,952,293 (397,743) 37,736,127 GROSS PROFIT $ 1,006,992 $ -- $ 4,219,176 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 68,229 $ -- 948,781 Insiders Compensation -- -- 470,408 Professional Fees -- -- 2,141,012 Other (Earnings in Joint Venture) -- -- 67,576 TOTAL OPERATING EXPENSE $ 68,229 $ -- $ 3,627,777 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 938,763 $ -- 591,399 INTEREST EXPENSE (includes amort of debt fees) 558,861 -- 4,169,945 DEPRECIATION 327,282 -- 2,187,306 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 886,143 $ -- $ 6,357,251 ================================================================================================================= NET INCOME BEFORE TAXES $ 52,620 $ -- $ (5,765,852) INCOME TAXES -- -- 93,738 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 52,620 $ -- $ (5,859,590) =================================================================================================================
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 Apr-02 May-02 Jun-02 - ----------------------------------------------- ---------- ---------- ---------- 1. CASH-BEGINNING OF MONTH $ 13,196 $ 164,030 $ 58,277 RECEIPTS: 2. CASH SALES $ -- $ -- $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 1,531,316 1,188,084 139,297 4. LOANS & ADVANCES (attach list) 5. SALE OF ASSETS 6. OTHER (attach list) 746,611 94,069 1,239,230 TOTAL RECEIPTS $2,277,927 $1,282,153 $1,378,527 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- 8. PAYROLL TAXES PAID 9. SALES, USE & OTHER TAXES PAID 12,292 23,843 17,807 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 18. OTHER (attach list) 1,937,473 1,364,063 1,119,071 TOTAL DISBURSEMENTS FROM OPERATIONS $2,127,093 $1,387,906 $1,288,372 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 22. NET CASH FLOW $ 150,833 $ (105,753) $ 90,155 23. CASH - END OF MONTH (MOR-2) $ 164,030 $ 58,277 $ 148,432 CASH RECEIPTS AND FILING TO DISBURSEMENTS Jul-02 Aug-02 Sep-02 Oct-02 DATE - --------------------------------------- ---------- ---------- ---------- ----------- ----------- 1. CASH-BEGINNING OF MONTH $ 148,432 $ 170,312 $ (76,521) $ 47,365 $ 271,082 RECEIPTS: 2. CASH SALES $ $ $ -- 3. COLLECTION OF ACCOUNTS RECEIVABLE $1,156,999 1,030,756 290,454 1,811,339 17,456,318 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) 630,984 574,906 1,064,523 571,824 30,936,351 TOTAL RECEIPTS $1,787,983 $1,605,662 $1,354,977 $2,383,163 $48,392,669 (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A DISBURSEMENTS: 7. NET PAYROLL $ $ $ -- 8. PAYROLL TAXES PAID -- 9. SALES, USE & OTHER TAXES PAID 8,165 14,277 7,434 282,493 10. SECURED/RENTAL/LEASES -- -- 11. UTILITIES -- -- 12. INSURANCE -- -- 13. INVENTORY PURCHASES -- -- 14. VEHICLE EXPENSES -- -- 15. TRAVEL & ENTERTAINMENT -- -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- -- 17. ADMINISTRATIVE & SELLING 22,860 136,439 4,203 1,640 1,140,730 18. OTHER (attach list) 1,735,079 1,701,779 1,226,888 2,322,574 47,141,649 TOTAL DISBURSEMENTS FROM OPERATIONS $1,766,104 $1,852,495 $1,231,091 $2,331,648 $48,564,872 19. PROFESSIONAL FEES $ -- $ -- 20. U.S. TRUSTEE FEES -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- TOTAL DISBURSEMENTS $1,766,104 $1,852,495 $1,231,091 $2,331,648 $48,564,872 22. NET CASH FLOW $ 21,880 $ (246,833) $ 123,886 $ 51,515 $ (172,202) 23. CASH - END OF MONTH (MOR-2) $ 170,312 $ (76,521) $ 47,365 $ 98,880 $ 98,880
MOR-7 CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11
OTHER CASH RECEIPTS AND DISBURSEMENTS: Apr-02 - ------------------------------------------------------------------------------------------ 6. OTHER RECEIPTS: Interest Income $ 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 558,861 rec'd in error and to be returned in Nov 01. TOTAL OTHER RECEIPTS $ 746,611 18. OTHER DISBURSEMENTS: Workover Expense Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 351,178 cash disbursements re Inter company AP 296,424 CIT revolver cash sweep 1,289,871 Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 1,937,473 OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DATE - ------------------------------------------------------------------------------------------------------------------------------------ 6. OTHER RECEIPTS: Interest Income $ 8 57 49 44 84 $ 61 $ 1,875 401(k) Plan Refund -- -- Cobra Insurance Payment -- -- Miscellaneous 2,061 48 1,001 1,296 8,328 Advance from Parent company - Sterling Chemicals 92,000 137,000 10,000 15,000 127,000 2,000 587,000 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 1,102,125 620,935 558,861 936,861 568,467 9,035,617 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 $ 571,824 $30,936,351 18. OTHER DISBURSEMENTS: Workover Expense -- -- Capital Expenditures -- -- Interest Payment -- -- Pre-petition checks voided in current period -- -- Advance to Parent company - Sterling Chemicals 604,865 515,042 305,766 481,000 514,681 29,034,636 cash disbursements re Inter company AP 497,261 231,893 253,095 558,861 53,786 3,709,955 CIT revolver cash sweep 1,364,063 16,945 988,144 1,142,918 187,027 1,754,107 13,963,815 Capital contribution to SPCUS 433,243 TOTAL OTHER DISBURSEMENTS $1,364,063 $1,119,071 $1,735,079 $1,701,799 $ 1,226,888 $2,322,574 $47,141,649
MOR-7 ATTACHMENT CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF OCTOBER 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 1,571 101 550 45,138 47,366 =============== =============== =============== =============== =============== RECEIPTS: 2. CASH SALES -- -- -- -- -- 3. COLLECTION OF ACCOUNTS RECEIVABLE 906,291 847,238 57,810 1,811,339 4. LOANS & ADVANCES (attach list) -- 5. SALE OF ASSETS -- 6. OTHER (attach list) -- -- 570,467 1,357 571,824 --------------- --------------- --------------- --------------- --------------- TOTAL RECEIPTS 906,291 847,238 570,467 59,167 2,383,163 --------------- --------------- --------------- --------------- --------------- (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 667 6,766 7,434 10. SECURED/RENTAL/LEASES -- 11. UTILITIES -- 12. INSURANCE -- 13. INVENTORY PURCHASES -- 14. VEHICLE EXPENSES -- 15. TRAVEL & ENTERTAINMENT -- 16. REPAIRS, MAINTENANCE & SUPPLIES -- 17. ADMINISTRATIVE & SELLING 1,640 1,640 18. OTHER (attach list) 906,869 847,238 568,467 -- 2,322,574 --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS FROM OPERATIONS 906,869 847,238 570,774 6,766 2,331,648 =============== =============== =============== =============== =============== 19. PROFESSIONAL FEES -- -- -- -- -- 20. U.S. TRUSTEE FEES -- -- -- -- -- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- --------------- --------------- --------------- --------------- --------------- TOTAL DISBURSEMENTS 906,869 847,238 570,774 6,766 2,331,648 =============== =============== =============== =============== =============== 22. NET CASH FLOW (578) -- (307) 52,401 51,515 23. CASH - END OF MONTH (MOR-2) 999 101 243 97,539 98,881
MOR-7 * Applies to Individual debtor's only. CASE NAME: STERLING CANADA, INC. CASE NUMBER: 01-37810-H4-11 MONTH OF OCTOBER 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 2,000 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 568,467 rec'd in error and to be returned in Oct 01. TOTAL OTHER RECEIPTS $ -- $ -- $ 570,467 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures Interest Payment Pre-petition checks voided in current period Advance to Parent company - Sterling Chemicals 514,681 cash disbursements re Inter company AP 53,786 CIT revolver cash sweep 906,869 847,238 Capital contribution to SPCUS TOTAL OTHER DISBURSEMENTS $ 906,869 $ 847,238 $ 568,467 CIBC OTHER CASH RECEIPTS AND 77-01713 DISBURSEMENTS: Checking Total - --------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ 61 $ 61 401(k) Plan Refund -- Advance from Parent company - Sterling Chemicals 2,000 Miscellaneous 1,296 1,296 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 568,467 rec'd in error and to be returned in Oct 01. -- TOTAL OTHER RECEIPTS $ 1,357 $ 571,824 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- Capital Expenditures -- Interest Payment -- Pre-petition checks voided in current period -- Advance to Parent company - Sterling Chemicals -- 514,681 cash disbursements re Inter company AP -- 53,786 CIT revolver cash sweep 1,754,107 Capital contribution to SPCUS -- TOTAL OTHER DISBURSEMENTS $ -- $ 2,322,574
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 $ 1,000 $ 100 $ 243 $ 1,343 $ 97,538 $ 98,882 DEPOSIT IN TRANSIT -- -- OUTSTANDING CHECKS -- ADJUSTED BANK BALANCE $ 1,000 $ 100 $ 243 $ 1,343 $ 97,538 $ 98,882 BEGINNING CASH - PER BOOKS $ 1,578 $ 100 $ 551 $ 2,229 $ 45,138 $ 47,367 RECEIPTS 906,291 847,238 570,467 2,323,996 59,166 2,383,162 TRANSFERS BETWEEN ACCOUNTS -- -- -- -- (WITHDRAWAL)CONTRIBUTION- -- BY INDIVIDUAL DEBTOR MFR-2 -- CHECKS/OTHER DISBURSEMENTS (906,869) (847,238) (570,775) (2,324,882) (6,766) $ (2,331,649) ENDING CASH - PER BOOKS $ 1,000 $ 100 $ 243 $ 1,343 $ 97,538 $ 98,880
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 Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 FILING TO /COMP TYPE (2) DATE - --------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- 7. -- -- -- -- -- -- -- -- 8. -- -- -- -- -- -- -- -- 9. -- -- -- -- -- -- -- -- TOTAL INSIDERS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
PROFESSIONALS Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 FILING TO NAME/ORDER DATE DATE - --------------------------------------------------------------------------------------------------------------------------------- 1. $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- 2. -- -- -- -- -- -- -- -- 3. -- -- -- -- -- -- -- -- 4. -- -- -- -- -- -- -- -- 5. -- -- -- -- -- -- -- -- 6. -- -- -- -- -- -- -- -- TOTAL PROFESSIONALS (MOR-1) $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
(1) REPRESENTS THE PERIOD 07/17/01 THRU 08/31/01. (2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (i) DIRECTORS, (ii) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (iii) AFFILIATES; AND (iv) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(a) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.7 9 h01651exv99w7.txt MONTHLY OPERATING REPORT-STERLING PULP CHEM. US EXHIBIT 99.7 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING PULP CHEMICALS US, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37811-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: OCTOBER YEAR: 2002
MONTH 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 - ----------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $ 365,854 $ 332,686 $360,103 $578,568 $559,868 $ 376,564 $ 358,622 INCOME BEFORE INT. DEPREC./TAX (MOR-6) $ (54,804) $ (62,294) $(35,237) $(20,405) $(46,557) $(119,579) $ (53,434) NET INCOME (LOSS) (MOR-6) $ (54,804) $ (62,294) $(35,237) $(20,405) $(46,557) $(119,579) $ (53,434) PAYMENTS TO INSIDERS (MOR-9) $ - $ - $ - $ - $ - $ - $ - PAYMENTS TO PROFESSIONALS (MOR-9) $ - $ - $ - $ - $ - $ - $ - TOTAL DISBURSEMENTS (MOR-7)(1) $ - $ - $ - $ - $ - $ - $ - (1) Excludes intercompany transfers as follows: $ - $ - $ - $ - $ - $ - $ -
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ----------------------------------- CASUALTY YES ( x) NO ( ) 08-01-02 LIABILITY YES ( x) NO ( ) 07-01-02 VEHICLE YES ( x) NO ( ) 07-01-02 WORKER'S YES ( x) NO ( ) 07-01-02 OTHER YES ( x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - -------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe ----------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - -------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN --------------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO --------------------------------------------------- MOR-1 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 13 11/19/02 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 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 13 11/19/02
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 & 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 Munich Re: 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - FM Global, Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 et al. 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 $444,650 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 13 11/19/02
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 OCTOBER 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 $ 461 $ - $ 83 Trade accounts receivable, net - 56,863 60 2,586 Other Receivables - 1,254 - 1,999 Due from affiliates 1,375 27,999 13,957 - Inventories - 31,311 - 8,246 Prepaid expenses 33 6,617 - 186 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,505 14,017 13,100 Property, plant and equipment, net - 113,625 2,520 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,445 - Investments in Subs 35,060 94,735 - - Other assets 865 32,777 - 1,112 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 367,142 $ 21,982 $ 14,212 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 251 168,473 1,263 6,637 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 54,755 - 13,751 Secured - Other 469 Unsecured debt 186,538 256,134 1,110 67,942 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 (1,120) (60,895) 4,275 (17,053) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,752) (523,226) 19,609 (147,108) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,752) (525,763) 19,609 (147,108) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 367,142 $ 21,982 $ 14,212 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 99 $ - $ - Trade accounts receivable, net - 2,191 819 4,771 Other Receivables - - 32 - Due from affiliates 2,771 62,541 585 11,459 Inventories - - 100 1,445 Prepaid expenses - - - 144 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,771 64,831 1,536 17,819 Property, plant and equipment, net - - - 40,614 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,487 - Other assets - 1,230 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,771 $ 361,872 $ 3,023 $ 58,433 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 99 25,645 752 3,234 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 878 16,160 - - Secured - Other Unsecured debt 840 264,937 139 62,282 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 1,486 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,477) (4,824) (1,011) (10,087) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,698) (12,022) 2,132 (7,083) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,698) (12,022) 2,132 (7,083) TOTAL LIABILITIES AND EQUITY $ (2,771) $ 361,872 $ 3,023 $ 58,433 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 644 Trade accounts receivable, net - 67,290 Other Receivables - 3,285 Due from affiliates (120,082) 605 Inventories - 41,102 Prepaid expenses - 6,980 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (120,082) 119,906 Property, plant and equipment, net - 156,759 Deferred income taxes - - Investments-Third Party - 6,945 Investments in Subs (395,322) 31,771 Other assets (1) 35,983 -------------------------------- TOTAL ASSETS $(515,405) $ 351,364 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (51,651) 154,703 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (14,651) 70,893 Secured - Other 469 Unsecured debt (133,310) 706,612 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 (53,899) (559,739) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (94,192) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (53,900) (901,048) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (53,900) (903,585) TOTAL LIABILITIES AND EQUITY $(515,405) $ 351,364 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
----------------------------------------------------------------------------------- Apr-2002 May-2002 Jun-2002 Jul-02 Aug-2002 Sep-2002 Oct-2002 ----------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 518 $ 936 $ 416 $ 458 $1,056 $ 377 $ 656 ROYALTY AND REVENUE PAYABLE NOTES PAYABLE - INSURANCE TAX PAYABLE: Federal Payroll Taxes State Payroll & Sales Ad Valorem Taxes Other Taxes TOTAL TAXES PAYABLE $ $ $ $ -- $ -- $ -- SECURED DEBT POST-PETITION ACCRUED INTEREST PAYABLE *ACCRUED PROFESSIONAL FEES: OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 19 25 29 341 54 246 96 2. Lease Operating Expenses/Capital TOTAL POST-PETITION LIABILITIES (MOR-3) $ 537 $ 962 $ 445 $ 799 $1,109 $ 623 $ 752 ============================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH OCTOBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 52,119 $ 52,119 $ -- $ -- $ -- $ -- 31-60 546 546 -- -- -- -- 61-90 352 352 -- -- -- -- 91 + 30,046 30,046 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 83,063 $ 83,063 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 OCTOBER 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) $ -- $ 36,364,891 $ 203,142 $ 1,605,316 TOTAL COST OF REVENUES -- 33,726,485 203,142 1,732,546 GROSS PROFIT $ -- $ 2,638,406 $ -- $ (127,230) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 31,112 $ 514,746 $ -- $ 178,896 Insiders Compensation -- 470,408 -- -- Professional Fees -- 2,141,012 -- -- Other (Earnings in Joint Venture) -- 133,674 (66,098) -- TOTAL OPERATING EXPENSE $ 31,112 $ 3,259,840 $ (66,098) $ 178,896 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (31,112) $ (621,434) $ 66,098 $ (306,126) INTEREST EXPENSE (includes amort of debt fees) -- 2,553,390 -- 723,970 DEPRECIATION -- 1,860,024 -- -- OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,413,414 $ -- $ 723,970 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (31,112) $ (5,034,848) $ 66,098 $ (1,030,096) INCOME TAXES -- -- 3,738 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (31,112) $ (5,034,848) $ 62,360 $ (1,030,096) ==================================================================================================================================== 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) $ 10,000 $ 851,790 $ 358,662 TOTAL COST OF REVENUES -- 33,247 486,157 GROSS PROFIT $ 10,000 $ 818,543 $ (127,535) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 4,433 $ 225,466 $ (74,101) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 4,433 $ 225,466 $ (74,101) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 5,567 $ 593,077 $ (53,434) INTEREST EXPENSE (includes amort of debt fees) 44,657 289,067 -- DEPRECIATION -- -- -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 44,657 $ 289,067 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (39,090) $ 304,010 $ (53,434) INCOME TAXES -- 90,000 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (39,090) $ 214,010 $ (53,434) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,959,285 $ (397,743) $ 41,955,303 TOTAL COST OF REVENUES 1,952,293 (397,743) 37,736,127 GROSS PROFIT $ 1,006,992 $ -- $ 4,219,176 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 68,229 $ -- 948,781 Insiders Compensation -- -- 470,408 Professional Fees -- -- 2,141,012 Other (Earnings in Joint Venture) -- -- 67,576 TOTAL OPERATING EXPENSE $ 68,229 $ -- $ 3,627,777 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 938,763 $ -- 591,399 INTEREST EXPENSE (includes amort of debt fees) 558,861 -- 4,169,945 DEPRECIATION 327,282 -- 2,187,306 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 886,143 $ -- $ 6,357,251 ================================================================================================================= NET INCOME BEFORE TAXES $ 52,620 $ -- $ (5,765,852) INCOME TAXES -- -- 93,738 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 52,620 $ -- $ (5,859,590) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
==================================================================================================================================== CASH RECEIPTS AND 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 FILING TO DISBURSEMENTS DATE - ------------------------------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ RECEIPTS: - ------------------------------------------------------------------------------------------------------------------------------------ 2. CASH SALES $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 3. COLLECTION OF ACCOUNTS RECEIVABLE - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 4. LOANS & ADVANCES (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 5. SALE OF ASSETS - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 6. OTHER (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL RECEIPTS $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ (Withdrawal) Contribution by Individual Debtor MFR-2* N/A N/A N/A N/A N/A N/A N/A N/A - ------------------------------------------------------------------------------------------------------------------------------------ DISBURSEMENTS: - ------------------------------------------------------------------------------------------------------------------------------------ 7. NET PAYROLL $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 8. PAYROLL TAXES PAID - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 9. SALES, USE & OTHER TAXES PAID - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 10. SECURED/RENTAL/LEASES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 11. UTILITIES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 12. INSURANCE - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 13. INVENTORY PURCHASES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 14. VEHICLE EXPENSES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 15. TRAVEL & ENTERTAINMENT - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 16. REPAIRS, MAINTENANCE & SUPPLIES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 17. ADMINISTRATIVE & SELLING - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 18. OTHER (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISBURSEMENTS FROM OPERATIONS $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 19. PROFESSIONAL FEES $ - - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 20. U.S. TRUSTEE FEES - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ 21. OTHER REORGANIZATION EXPENSES (attach list) - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISBURSEMENTS $ - - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 22. NET CASH FLOW $ - - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------------ 23. CASH - END OF MONTH (MOR-2) $ - - $ - $ - $ - $ - $ - $ - ====================================================================================================================================
MOR-7 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11
============================================================================================================================== OTHER CASH RECEIPTS AND 4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 FILING TO DISBURSEMENTS: DATE - ------------------------------------------------------------------------------------------------------------------------------ 6. OTHER RECEIPTS: - ------------------------------------------------------------------------------------------------------------------------------ Interest Income $ - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------ 401(k) Plan Refund - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------ Cobra Insurance Payment - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------ Miscellaneous - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------ Emission Credits - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ TOTAL OTHER RECEIPTS $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------ 18. OTHER DISBURSEMENTS: - ------------------------------------------------------------------------------------------------------------------------------ Capital Expenditures - $ - $ - $ - $ - $ - $ - $ - - ------------------------------------------------------------------------------------------------------------------------------ Interest Payment - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------ Restricted Cash - Bond Funding - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------ Pre-petition checks voided in current period - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ TOTAL OTHER DISBURSEMENTS $ - $ - $ - $ - $ - $ - $ - $ - ==============================================================================================================================
MOR-7 ATTACHMENT CASE NAME: Sterling Pulp Chemicals US, Inc. CASE NUMBER: 01-37811-H4-11 CASH ACCOUNT RECONCILIATION MONTH OF OCTOBER 2002 --------------------------------- =========================================================================================================================== BANK NAME N/A - --------------------------------------------------------------------------------------------------------------------------- ACCOUNT NUMBER - --------------------------------------------------------------------------------------------------------------------------- ACCOUNT TYPE TOTAL - ------------ ----- - --------------------------------------------------------------------------------------------------------------------------- BANK BALANCE $ - - --------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT - - --------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS - - --------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ - $ - $ - $ - $ - $ - $ - $ - $ - - --------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOS $ - - --------------------------------------------------------------------------------------------------------------------------- RECEIPTS - - --------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS - - --------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - - --------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - - --------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS - - --------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ - $ - $ - $ - $ - $ - $ - $ - $ - ===========================================================================================================================
Note: Bank statements have not been received in time to complete this report. Future reports will include reconciliations for the prior month. MOR-8 CASE NAME: STERLING PULP CHEMICALS US, INC. CASE NUMBER: 01-37811-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
=================================================================================================================================== Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE - ----------------------------------------------------------------------------------------------------------------------------------- 1. $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 2. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 3. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 7. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 8. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 9. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INSIDERS (MOR-1) $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================================================
=================================================================================================================================== Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 FILING TO PROFESSIONALS DATE NAME/ORDER DATE - ----------------------------------------------------------------------------------------------------------------------------------- 1. $ - $ - $ - $ - $ - $ - $ - $ - - ----------------------------------------------------------------------------------------------------------------------------------- 2. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 3. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 4. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 5. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- 6. - - - - - - - - - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL PROFESSIONALS (MOR-1) $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================================================
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (I) DIRECTORS, (II) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (III) AFFILIATES ; AND (IV) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 EX-99.8 10 h01651exv99w8.txt MONTHLY OPERATING REPORT-STERLING PULP CHEM. INC. EXHIBIT 99.8 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION CASE NAME: STERLING PULP CHEMICALS, INC. PETITION DATE: 07/16/01 CASE NUMBER: 01-37812-H4-11 MONTHLY OPERATING REPORT SUMMARY FOR MONTH: OCTOBER YEAR: 2002
4/30/02 5/31/02 6/30/02 7/31/02 8/31/02 9/30/02 10/31/02 MONTH Revised - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (MOR-6) $3,332,627 $3,292,539 $3,272,103 $3,407,217 $3,686,476 $2,990,326 $2,959,285 INCOME BEFORE INT. DEPREC./TAX (MOR-6) 692,530 $ 685,631 $ 803,792 $ 455,418 $ 483,115 $ 747,464 $ 938,763 NET INCOME (LOSS) (MOR-6) 365,040 $ 359,532 $ 477,690 $ 129,456 $ 156,871 $ (120,684) $ 52,620 PAYMENTS TO INSIDERS (MOR-9) -- $ -- $ -- $ -- $ -- $ -- $ -- PAYMENTS TO PROFESSIONALS (MOR-9) -- $ -- $ -- $ -- $ -- $ -- $ -- TOTAL DISBURSEMENTS (MOR-7)(1) $5,480,057 $5,781,161 $4,377,813 $4,965,224 $5,156,374 $5,771,465 $5,770,310 (1) Excludes intercompany transfers as follows: $ 773,455 $ -- $1,801,682 $ 737,250 $ 758,872 $1,364,928 $ 826,942
***The original of this document MUST BE FILED with the United States Bankruptcy Court and a COPY MUST BE SENT to the United States Trustee*** REQUIRED INSURANCE MAINTAINED AS OF SIGNATURE DATE EXP. See attachment 2 DATE - ------------------------------ CASUALTY YES ( x) NO ( ) 08-01-02 LIABILITY YES ( x) NO ( ) 07-01-02 VEHICLE YES ( x) NO ( ) 07-01-02 WORKER'S YES ( x) NO ( ) 07-01-02 OTHER YES ( x) NO ( ) various ATTORNEY NAME: Jeff Spiers FIRM: Andrews & Kurth LLP ADDRESS: 600 Travis ADDRESS: Suite 4200 CITY, STATE ZIP: Houston, TX 77002 TELEPHONE: 713-220-4103 Are all accounts receivable being collected within terms? NO Are all post-petition liabilities, including taxes, being paid with terms? YES Have any pre-petition liabilities been paid? NO If so, describe - ------------------------------------------------------------------------------- Are all funds received being deposited into DIP bank accounts? YES Were any assets disposed of outside the normal course of business? NO If so, describe --------------------------------------------------------------- - ------------------------------------------------------------------------------- Are all U.S. Trustee Quarterly Fee Payments current? YES What is the status of your Plan of Reorganization? A proposed Plan of Reorganization was filed with the U.S. Bankruptcy Court on May 14, 2002. - ------------------------------------------------------------------------------- I certify under penalty of perjury that the following complete Monthly Operating Report (MOR), consisting of MOR-1 through MOR-9 plus attachments, is true and correct. SIGNED /s/ PAUL VANDERHOVEN --------------------------------------------------- (ORIGINAL SIGNATURE) TITLE VP Finance, CFO -------------------------------------------------- MOR-1 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
PAID COVERAGE POLICY PERIOD POLICY NO. LIMITS CARRIER THROUGH - ------------------------------------------------------------------------------------------------------------------------------------ See Attachment 2
MOR-1 ATTACHMENT 2 Page 3 of 15 11/19/02 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 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 11/19/02
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 & 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 Munich Re: 1 year 8/1/03 Property Values - PD Business Interruption all-risk. Sublimits: Flood - FM Global, Income values - BI and Boiler & Machinery $100 mil., Earthquake - $100 et al. 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 $444,650 Liability 15 Excess Directors & $275,000 Officers Liability 16 Directors & Officers $170,000 Liability
Page 5 of 15 11/19/02
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 OCTOBER 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 $ 461 $ - $ 83 Trade accounts receivable, net - 56,863 60 2,586 Other Receivables - 1,254 - 1,999 Due from affiliates 1,375 27,999 13,957 - Inventories - 31,311 - 8,246 Prepaid expenses 33 6,617 - 186 Deferred income tax benefit - - - - ------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 1,409 124,505 14,017 13,100 Property, plant and equipment, net - 113,625 2,520 - Deferred income taxes - - - - Investments-Third Party - 1,500 5,445 - Investments in Subs 35,060 94,735 - - Other assets 865 32,777 - 1,112 ------------------------------------------------------------------------------------ TOTAL ASSETS $ 37,334 $ 367,142 $ 21,982 $ 14,212 ==================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 251 168,473 1,263 6,637 Pre-Petition liabilities: Notes Payable - Secured * - 227,848 - 57,221 Secured Debt Accrued Interest * - 54,755 - 13,751 Secured - Other 469 Unsecured debt 186,538 256,134 1,110 67,942 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 (1,120) (60,895) 4,275 (17,053) Pension adjustment - (14,890) - - Accumulated translation adj. - - - - Deferred compensation - - - - ------------------------------------------------------------------------------------ (176,752) (523,226) 19,609 (147,108) Treasury stock at cost - (2,537) - - ------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' EQUITY (176,752) (525,763) 19,609 (147,108) TOTAL LIABILITIES AND EQUITY $ 37,334 $ 367,142 $ 21,982 $ 14,212 ====================================================================================
-------------------------------------------------------------------------------- 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 $ - $ 99 $ - $ - Trade accounts receivable, net - 2,191 819 4,771 Other Receivables - - 32 - Due from affiliates 2,771 62,541 585 11,459 Inventories - - 100 1,445 Prepaid expenses - - - 144 Deferred income tax benefit - - - - ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS 2,771 64,831 1,536 17,819 Property, plant and equipment, net - - - 40,614 Deferred income taxes - - - - Investments-Third Party - - - - Investments in Subs - 295,811 1,487 - Other assets - 1,230 - - --------------------------------------------------------------------------- TOTAL ASSETS $ 2,771 $ 361,872 $ 3,023 $ 58,433 =========================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) 99 25,645 752 3,234 Pre-Petition liabilities: Notes Payable - Secured * 3,652 67,152 - - Secured Debt Accrued Interest * 878 16,160 - - Secured - Other Unsecured debt 840 264,937 139 62,282 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 1,486 Retained earnings-Filing Date 779 (90,594) (877) 1,518 Retained earnings-Post Filing Date (3,477) (4,824) (1,011) (10,087) Pension adjustment - - - - Accumulated translation adj. - - - - Deferred compensation - - - - --------------------------------------------------------------------------- (2,698) (12,022) 2,132 (7,083) Treasury stock at cost - - - - --------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY (2,698) (12,022) 2,132 (7,083) TOTAL LIABILITIES AND EQUITY $ (2,771) $ 361,872 $ 3,023 $ 58,433 ===========================================================================
------------------------------------ DEBTORS ASSETS ELIMINATIONS CONSOLIDATED ------------------------------------ Current Assets: Cash and cash equivalents $ - $ 644 Trade accounts receivable, net - 67,290 Other Receivables - 3,285 Due from affiliates (120,082) 605 Inventories - 41,102 Prepaid expenses - 6,980 Deferred income tax benefit - - -------------------------------- TOTAL CURRENT ASSETS (120,082) 119,906 Property, plant and equipment, net - 156,759 Deferred income taxes - - Investments-Third Party - 6,945 Investments in Subs (395,322) 31,771 Other assets (1) 35,983 -------------------------------- TOTAL ASSETS $(515,405) $ 351,364 ================================ LIABILITIES AND STOCKHOLDERS' EQUITY Post Petition liabilities (MOR-4) (51,651) 154,703 Pre-Petition liabilities: Notes Payable - Secured * (60,873) 295,000 Secured Debt Accrued Interest * (14,651) 70,893 Secured - Other 469 Unsecured debt (133,310) 706,612 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 (53,899) (559,739) Retained earnings-Filing Date - (232,350) Retained earnings-Post Filing Date - (94,192) Pension adjustment - (14,890) Accumulated translation adj. - - Deferred compensation - - -------------------------------- (53,900) (901,048) Treasury stock at cost - (2,537) -------------------------------- TOTAL STOCKHOLDERS' EQUITY (53,900) (903,585) TOTAL LIABILITIES AND EQUITY $(515,405) $ 351,364 ================================
* Senior Secured Notes were issued by Sterling Chemicals, Inc., but a percentage is pushed down to the subsidiaries. MOR 2 - 3 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 SCHEDULE OF POST-PETITION LIABILITIES
------------------------------------------------------------------------------------------- Apr-2002 May-2002 Jun-2002 Jul-02 Aug-2002 Sep-2002 Oct-2002 ------------------------------------------------------------------------------------------- TRADE ACCOUNTS PAYABLE $ 1,242 $ 2,368 $ 773 $ 956 $ 1,827 $ 2,420 $ 2,440 ROYALTY AND REVENUE PAYABLE -- NOTES PAYABLE - INSURANCE -- TAX PAYABLE: -- Federal Payroll Taxes -- State Payroll & Sales -- Ad Valorem Taxes -- Other Taxes 113 27 166 192 219 245 272 TOTAL TAXES PAYABLE $ 113 $ 27 $ 166 $ 192 $ 219 $ 245 $ 272 SECURED DEBT POST-PETITION -- ACCRUED INTEREST PAYABLE -- *ACCRUED PROFESSIONAL FEES: -- OTHER ACCRUED LIABILITIES: 1. General and Administrative Costs 354 422 442 394 559 591 522 2. Lease Operating Expenses/Capital -- TOTAL POST-PETITION LIABILITIES (MOR-3) $ 1,709 $ 2,817 $ 1,381 $ 1,542 $ 2,605 $ 3,256 $ 3,234 =================================================================================================================================
*Payment Requires Court Approval MOR-4 CONSOLIDATED DEBTORS(1) (000s)
AGING OF POST-PETITION LIABILITIES MONTH OCTOBER 2002 ------------------ AD-VALOREM, ROYALTY DAYS TOTAL TRADE ACCTS FED TAXES STATE TAXES OTHER TAXES AND INSURANCE ---- -------- ----------- --------- ----------- ----------- ------------- 0-30 $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 31-60 61-90 91 + -------- --------- --------- ----------- ----------- ------------- TOTAL $154,703 $ 143,507 $ -- $ 95 $ 5,856 $ 5,245 ======== ========= ========= =========== =========== =============
AGING OF ACCOUNTS RECEIVABLE(1)
MONTH --------- 0-30 $ 52,119 $ 52,119 $ -- $ -- $ -- $ -- 31-60 546 546 -- -- -- -- 61-90 352 352 -- -- -- -- 91 + 30,046 30,046 -- -- -- -- -------- -------- -------- -------- -------- -------- TOTAL $ 83,063 $ 83,063 $ -- $ -- $ -- $ -- ======== ======== ======== ======== ======== ========
(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 OCTOBER 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) $ -- $ 36,364,891 $ 203,142 $ 1,605,316 TOTAL COST OF REVENUES -- 33,726,485 203,142 1,732,546 GROSS PROFIT $ -- $ 2,638,406 $ -- $ (127,230) ==================================================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 31,112 $ 514,746 $ -- $ 178,896 Insiders Compensation -- 470,408 -- -- Professional Fees -- 2,141,012 -- -- Other (Earnings in Joint Venture) -- 133,674 (66,098) -- TOTAL OPERATING EXPENSE $ 31,112 $ 3,259,840 $ (66,098) $ 178,896 ==================================================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ (31,112) $ (621,434) $ 66,098 $ (306,126) INTEREST EXPENSE (includes amort of debt fees) -- 2,553,390 -- 723,970 DEPRECIATION -- 1,860,024 -- -- OTHER (INCOME) EXPENSES* -- -- -- -- OTHER ITEMS** -- -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ -- $ 4,413,414 $ -- $ 723,970 ==================================================================================================================================== NET INCOME BEFORE TAXES $ (31,112) $ (5,034,848) $ 66,098 $ (1,030,096) INCOME TAXES -- -- 3,738 -- ==================================================================================================================================== NET INCOME (LOSS) (MOR-1) $ (31,112) $ (5,034,848) $ 62,360 $ (1,030,096) ==================================================================================================================================== 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) $ 10,000 $ 851,790 $ 358,662 TOTAL COST OF REVENUES -- 33,247 486,157 GROSS PROFIT $ 10,000 $ 818,543 $ (127,535) ============================================================================================================== OPERATING EXPENSES: Selling, General & Administrative $ 4,433 $ 225,466 $ (74,101) Insiders Compensation -- -- -- Professional Fees -- -- -- Other (Earnings in Joint Venture) -- -- -- TOTAL OPERATING EXPENSE $ 4,433 $ 225,466 $ (74,101) ============================================================================================================== INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 5,567 $ 593,077 $ (53,434) INTEREST EXPENSE (includes amort of debt fees) 44,657 289,067 -- DEPRECIATION -- -- -- OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 44,657 $ 289,067 $ -- ============================================================================================================== NET INCOME BEFORE TAXES $ (39,090) $ 304,010 $ (53,434) INCOME TAXES -- 90,000 -- ============================================================================================================== NET INCOME (LOSS) (MOR-1) $ (39,090) $ 214,010 $ (53,434) ============================================================================================================== STERLING PULP CHEMICALS, INC. DEBTORS MONTH 01-37812-H4-11 ELIMINATIONS CONSOLIDATED ------------------ ------------------ ------------------ REVENUES (MOR-1) $ 2,959,285 $ (397,743) $ 41,955,303 TOTAL COST OF REVENUES 1,952,293 (397,743) 37,736,127 GROSS PROFIT $ 1,006,992 $ -- $ 4,219,176 ================================================================================================================= OPERATING EXPENSES: Selling, General & Administrative $ 68,229 $ -- 948,781 Insiders Compensation -- -- 470,408 Professional Fees -- -- 2,141,012 Other (Earnings in Joint Venture) -- -- 67,576 TOTAL OPERATING EXPENSE $ 68,229 $ -- $ 3,627,777 ================================================================================================================= INCOME BEFORE INT. DEPR/TAX (MOR-1) $ 938,763 $ -- 591,399 INTEREST EXPENSE (includes amort of debt fees) 558,861 -- 4,169,945 DEPRECIATION 327,282 -- 2,187,306 OTHER (INCOME) EXPENSES* -- -- -- OTHER ITEMS** -- -- -- TOTAL INT. DEPR & OTHER ITEMS $ 886,143 $ -- $ 6,357,251 ================================================================================================================= NET INCOME BEFORE TAXES $ 52,620 $ -- $ (5,765,852) INCOME TAXES -- -- 93,738 ================================================================================================================= NET INCOME (LOSS) (MOR-1) $ 52,620 $ -- $ (5,859,590) =================================================================================================================
Accrual Accounting Required, Otherwise Footnote With Explanation * Footnote Mandatory ** Unusual and/or frequent item(s) outside the ordinary course of business; requires footnote MOR-6 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
======================================================== ================================================== CASH RECEIPTS AND DISBURSEMENTS Apr-02 May-02 Jun-02 Jul-02 - ----------------------------------------------------------- -------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ (87,281) $ 48,725 $ (79,248) $ (72,403) ----------- ----------- ---------- ---------- RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- ----------- ----------- ---------- ---------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 3,547,110 3,163,218 3,106,659 3,317,545 ----------- ----------- ---------- ---------- 4. LOANS & ADVANCES (attach list) -- -- -- -- ----------- ----------- ---------- ---------- 5. SALE OF ASSETS -- -- -- -- ----------- ----------- ---------- ---------- 6. OTHER (attach list) 2,842,408 2,489,971 3,079,681 2,669,707 ----------- ----------- ---------- ---------- TOTAL RECEIPTS $ 6,389,518 $ 5,653,189 $6,186,340 $5,987,252 ----------- ----------- ---------- ---------- (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 434 -- -- 432 ----------- ----------- ---------- ---------- 10. SECURED/RENTAL/LEASES 552 6,432 2,857 4,535 ----------- ----------- ---------- ---------- 11. UTILITIES 1,202,470 1,773,292 643,683 1,088,733 ----------- ----------- ---------- ---------- 12. INSURANCE -- -- -- -- ----------- ----------- ---------- ---------- 13. INVENTORY PURCHASES 255,526 254,505 237,487 252,476 ----------- ----------- ---------- ---------- 14. VEHICLE EXPENSES -- -- -- -- ----------- ----------- ---------- ---------- 15. TRAVEL & ENTERTAINMENT 265 6,628 8,209 7,464 ----------- ----------- ---------- ---------- 16. REPAIRS, MAINTENANCE & SUPPLIES 92,812 163,351 93,590 93,014 ----------- ----------- ---------- ---------- 17. ADMINISTRATIVE & SELLING 209,070 220,698 188,815 279,602 ----------- ----------- ---------- ---------- 18. OTHER (attach list) 4,492,383 3,356,255 5,004,854 3,976,219 ----------- ----------- ---------- ---------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,253,512 $ 5,781,161 $6,179,495 $5,702,474 ----------- ----------- ---------- ---------- 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- ----------- ----------- ---------- ---------- 20. U.S. TRUSTEE FEES -- -- -- -- ----------- ----------- ---------- ---------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- ----------- ----------- ---------- ---------- TOTAL DISBURSEMENTS $ 6,253,512 $ 5,781,161 $6,179,495 $5,702,474 ----------- ----------- ---------- ---------- 22. NET CASH FLOW $ 136,006 $ (127,973) $ 6,845 $ 284,778 ----------- ----------- ---------- ---------- 23. CASH - END OF MONTH (MOR-2) $ 48,725 $ (79,248) $ (72,403) $ 212,375 =========== =========== ========== ========== ================================================================================================================= CASH RECEIPTS AND FILING TO DISBURSEMENTS Aug-02 Sep-02 Oct-02 DATE - -------------------------------------------------------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH 212,375 $ (203,727) $ (147,661) $ 308,953 ---------- ---------- ------------ ----------- RECEIPTS: 2. CASH SALES $ -- $ $ -- ---------- ------------ ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,565,816 2,907,481 2,980,671 47,600,001 ---------- ---------- ------------ ----------- 4. LOANS & ADVANCES (attach list) -- -- ---------- ------------ ----------- 5. SALE OF ASSETS -- -- ---------- ------------ ----------- 6. OTHER (attach list) 2,933,328 4,284,978 3,760,776 47,264,270 ---------- ---------- ------------ ----------- TOTAL RECEIPTS $5,499,144 $7,192,459 $ 6,741,447 $94,864,271 ---------- ---------- ------------ ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A N/A ---------- ------------ ----------- DISBURSEMENTS: 7. NET PAYROLL $ -- $ -- $ -- ---------- ------------ ----------- 8. PAYROLL TAXES PAID -- -- -- ---------- ------------ ----------- 9. SALES, USE & OTHER TAXES PAID 447.25 2,919 ---------- ------------ ----------- 10. SECURED/RENTAL/LEASES 1,090 1,061 4,697 1,108,346 ---------- ---------- ------------ ----------- 11. UTILITIES 1,185,928 1,206,532 1,211,499 17,033,710 ---------- ---------- ------------ ----------- 12. INSURANCE -- -- -- 269,741 ---------- ---------- ------------ ----------- 13. INVENTORY PURCHASES 260,825 258,688 254,598 3,654,228 ---------- ---------- ------------ ----------- 14. VEHICLE EXPENSES -- -- -- 268 ---------- ---------- ------------ ----------- 15. TRAVEL & ENTERTAINMENT 1,241 910 3,315 179,711 ---------- ---------- ------------ ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 148,442 119,170 184,172 1,787,377 ---------- ---------- ------------ ----------- 17. ADMINISTRATIVE & SELLING 642,883 864,315 474,057 4,383,616 ---------- ---------- ------------ ----------- 18. OTHER (attach list) 3,674,838 4,685,717 4,464,467 66,756,774 ---------- ---------- ------------ ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $5,915,246 $7,136,393 $ 6,597,252 $95,176,690 ---------- ---------- ------------ ----------- 19. PROFESSIONAL FEES $ -- $ -- $ -- ---------- ------------ ----------- 20. U.S. TRUSTEE FEES -- -- -- ---------- ------------ ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- ---------- ------------ ----------- TOTAL DISBURSEMENTS $5,915,246 $7,136,393 $ 6,597,252 $95,176,690 ---------- ---------- ------------ ----------- 22. NET CASH FLOW $ (416,102) $ 56,066 $ 144,195 $ (312,419) ---------- ---------- ------------ ----------- 23. CASH - END OF MONTH (MOR-2) $ (203,727) $ (147,661) $ (3,466) $ (3,466) ========== ========== ============ ===========
MOR-7 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11
==================================================================================================================================== OTHER CASH RECEIPTS AND Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02 DISBURSEMENTS: - ------------------------------------------------------------------------------------------------------------------------------------ 6.OTHER RECEIPTS: Interest Income $ $ -- $ -- $ -- $ -- $ -- $ ---------- ---------- ---------- ---------- ---------- ---------- ---------- 401(k) Plan Refund -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cobra Insurance Payment -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Miscellaneous 73 -- 2,225 -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Emission Credits -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Trade AR receipts of an affiliated co. SPC LTD 265,953 147,898 4,232 215,456 357,051 484,834 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals 1,788,000 2,342,000 3,079,681 1,802,148 2,509,960 1,718,862 2,997,764 cash receipts re Inter company AR 788,455 802,760 207,912 2,101,451 89,977 Capital Contribution from SPCUS 58,342 107,614 188,201 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER RECEIPTS $2,842,408 $2,489,971 $3,079,681 $2,669,707 $2,933,328 $4,284,978 $3,760,776 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 18.OTHER DISBURSEMENTS: Capital Expenditures $ 45,333 $ 13,337 $ 63,454 $ 97,351 $ 25,363 $ 49,326 $ 31,489 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Interest Payment -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Restricted Cash - Bond Funding -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Pre-petition checks voided in current period -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Trade AR receipts of an affiliated co. SPC LTD -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- CIT revolver cash sweep 3,673,595 3,342,918 3,139,718 3,141,618 2,890,603 3,271,463 3,606,036 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS -- -- 323,203 -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- cash disbursements re Inter company AP 773,455 1,801,682 737,250 758,872 1,041,725 826,942 ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $4,492,383 $3,356,255 $5,004,854 $3,976,219 $3,674,838 $4,685,717 $4,464,467 ========== ========== ========== ========== ========== ========== ==========
========================================================= OTHER CASH RECEIPTS AND FILING TO DISBURSEMENTS: DATE - --------------------------------------------------------- 6.OTHER RECEIPTS: Interest Income $ -- ----------- 401(k) Plan Refund -- ----------- Cobra Insurance Payment -- ----------- Miscellaneous 2,298 ----------- Emission Credits -- ----------- Trade AR receipts of an affiliated co. SPC LTD 2,398,052 ----------- Cash advance from Sterling Chemicals 31,763,915 cash receipts re Inter company AR Capital Contribution from SPCUS ----------- TOTAL OTHER RECEIPTS $34,164,265 ----------- 18.OTHER DISBURSEMENTS: Capital Expenditures $895,923.92 ----------- Interest Payment -- ----------- Restricted Cash - Bond Funding -- ----------- Pre-petition checks voided in current period -- ----------- Trade AR receipts of an affiliated co. SPC LTD 632,768 ----------- CIT revolver cash sweep -- ----------- Return of investment to SPCUS 1,915,050 ----------- cash disbursements re Inter company AP ----------- TOTAL OTHER DISBURSEMENTS $ 3,443,742 ===========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF OCTOBER 2002
======================================================================================================================== BANK ONE CHASE MANHATTEN CHASE MANHATTEN FIRST STATE BANK CASH RECEIPTS AND 5589665 001-00546119 001-03317146 011-077-220-1 DISBURSEMENTS LOCK BOX GENERAL CHECKING CHECKING ------------------------------------------------------------------------------------------------------------------------ 1. CASH-BEGINNING OF MONTH $ 141,530 $ 100 $ (309,727) $ 20,437 $ -- ------------ --------------- --------------- ---------------- ------ RECEIPTS: 2. CASH SALES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,563,128 417,543 -- ------------ --------------- --------------- ---------------- ------ 4. LOANS & ADVANCES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 5. SALE OF ASSETS -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 6. OTHER (attach list) 445,623 39,211 3,275,942 -- -- ------------ --------------- --------------- ---------------- ------ TOTAL RECEIPTS $ 3,008,751 $ 456,754 $ 3,275,942 $ -- $ -- ------------ --------------- --------------- ---------------- ------ (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 447 -- ------------ --------------- --------------- ---------------- ------ 10. SECURED/RENTAL/LEASES 4,697 -- -- ------------ --------------- --------------- ---------------- ------ 11. UTILITIES 1,211,499 -- -- ------------ --------------- --------------- ---------------- ------ 12. INSURANCE -- -- -- ------------ --------------- --------------- ---------------- ------ 13. INVENTORY PURCHASES 254,598 -- -- ------------ --------------- --------------- ---------------- ------ 14. VEHICLE EXPENSES -- -- -- ------------ --------------- --------------- ---------------- ------ 15. TRAVEL & ENTERTAINMENT 3,315 -- -- ------------ --------------- --------------- ---------------- ------ 16. REPAIRS, MAINTENANCE & SUPPLIES 178,112 6,060 -- ------------ --------------- --------------- ---------------- ------ 17. ADMINISTRATIVE & SELLING 471,282 2,775 -- ------------ --------------- --------------- ---------------- ------ 18. OTHER (attach list) 3,149,282 456,754 858,431 -- -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS FROM OPERATIONS $ 3,149,282 $ 456,754 $ 2,981,934 $ 9,283 $ -- ------------ --------------- --------------- ---------------- ------ 19. PROFESSIONAL FEES $ -- $ -- $ -- $ -- $ -- ------------ --------------- --------------- ---------------- ------ 20. U.S. TRUSTEE FEES -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ 21. OTHER REORGANIZATION EXPENSES (attach list) -- -- -- -- -- ------------ --------------- --------------- ---------------- ------ TOTAL DISBURSEMENTS $ 3,149,282 $ 456,754 $ 2,981,934 $ 9,283 $ -- ------------ --------------- --------------- ---------------- ------ 22. NET CASH FLOW $ (140,531) $ -- $ 294,008 $ (9,283) $ -- ------------ --------------- --------------- ---------------- ------ 23. CASH - END OF MONTH (MOR-2) $ 999 $ 100 $ (15,719) $ 11,154 $ -- ============ =============== =============== ================ ====== =================================================================== CASH RECEIPTS AND DISBURSEMENTS TOTAL ------------------------------------------------------------------- 1. CASH-BEGINNING OF MONTH $ (147,660) ----------- RECEIPTS: 2. CASH SALES $ -- ----------- 3. COLLECTION OF ACCOUNTS RECEIVABLE 2,980,671 ----------- 4. LOANS & ADVANCES (attach list) -- ----------- 5. SALE OF ASSETS -- ----------- 6. OTHER (attach list) 3,760,776 ----------- TOTAL RECEIPTS $ 6,741,447 ----------- (Withdrawal)Contribution by Individual Debtor MFR-2* N/A ----------- DISBURSEMENTS: 7. NET PAYROLL $ -- ----------- 8. PAYROLL TAXES PAID -- ----------- 9. SALES, USE & OTHER TAXES PAID 447 ----------- 10. SECURED/RENTAL/LEASES 4,697 ----------- 11. UTILITIES 1,211,499 ----------- 12. INSURANCE -- ----------- 13. INVENTORY PURCHASES 254,598 ----------- 14. VEHICLE EXPENSES -- ----------- 15. TRAVEL & ENTERTAINMENT 3,315 ----------- 16. REPAIRS, MAINTENANCE & SUPPLIES 184,172 ----------- 17. ADMINISTRATIVE & SELLING 474,057 ----------- 18. OTHER (attach list) 4,464,467 ----------- TOTAL DISBURSEMENTS FROM OPERATIONS $ 6,597,252 ----------- 19. PROFESSIONAL FEES $ -- ----------- 20. U.S. TRUSTEE FEES -- ----------- 21. OTHER REORGANIZATION EXPENSES (attach list) -- ----------- TOTAL DISBURSEMENTS $ 6,597,252 ----------- 22. NET CASH FLOW $ 144,195 ----------- 23. CASH - END OF MONTH (MOR-2) $ (3,465) ===========
MOR-7 *Applies to Individual debtor's only. CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 MONTH OF OCTOBER 2002
============================================================================================================================= Chase Chase First State Bank One Manhattan Manhattan Bank OTHER CASH RECEIPTS AND 5589665 001-00546119 001-03317146 011-077-220-1 DISBURSEMENTS: Lock Box General Checking Checking Total - ----------------------------------------------------------------------------------------------------------------------------- 6. OTHER RECEIPTS: Interest Income $ -- $ -- $ -- $ $ -- ---------- ---------- ---------- ---------- ---------- 401(k) Plan Refund -- ---------- ---------- ---------- ---------- ---------- Cobra Insurance Payment -- ---------- ---------- ---------- ---------- ---------- Miscellaneous -- ---------- ---------- ---------- ---------- ---------- Transfer Between Accounts -- ---------- ---------- ---------- ---------- ---------- Cash advance from Sterling Chemicals -- 2,997,764 -- 2,997,764 Funds belonging to Sterling Pulp Chemicals Ltd. 445,623 39,211 -- -- 484,834 rec'd in error and to be returned in Sept 01. -- cash receipts re Inter company AR 89,977 -- 89,977 ---------- ---------- ---------- ---------- ---------- Return of investment from SPCUS 188,201 188,201 TOTAL OTHER RECEIPTS $ 445,623 $ 39,211 $3,275,942 $ -- $3,760,776 ---------- ---------- ---------- ---------- ---------- 18. OTHER DISBURSEMENTS: Transfer Between Accounts -- -- Capital Expenditures $ $ $ 31,489 $ -- $ 31,489 ---------- ---------- ---------- ---------- ---------- Trade AR receipts of an affiliated co. SPC LTD -- -- ---------- ---------- ---------- ---------- ---------- Pre-petition checks voided in current period -- ---------- ---------- ---------- ---------- ---------- Advance to Parent company - Sterling Chemicals -- -- ---------- ---------- ---------- ---------- ---------- cash disbursements re Inter company AP 826,942 826,942 ---------- ---------- ---------- ---------- ---------- CIT revolver cash sweep 3,149,282 456,754 3,606,036 ---------- ---------- ---------- ---------- ---------- Return of investment to SPCUS -- ---------- ---------- ---------- ---------- ---------- TOTAL OTHER DISBURSEMENTS $3,149,282 $ 456,754 $ 858,431 $ -- $4,464,467 ========== ========== ========== ========== ==========
MOR-7 ATTACHMENT CASE NAME: STERLING PULP CHEMICALS INC. CASE NUMBER: 01-37812-H3-11 CASH ACCOUNT RECONCILIATION MONTH OF OCTOBER 2002 --------------------------------- BANK NAME Bank One Chase Manhattan Chase Manhattan First State Bank - ---------------------------------------------------------------------------------------------------------------------------------- ACCOUNT NUMBER 5589665 001-00546119 001-03317146 Consolidated 011-077-220-1 - ---------------------------------------------------------------------------------------------------------------------------------- ACCOUNT TYPE Lock Box General Checking Checking TOTAL - ---------------------------------------------------------------------------------------------------------------------------------- BANK BALANCE $ 999 $ 100 $ 925 $ 2,025 $ 14,824 $ 16,849 - ---------------------------------------------------------------------------------------------------------------------------------- DEPOSIT IN TRANSIT $ -- -- - ---------------------------------------------------------------------------------------------------------------------------------- OUTSTANDING CHECKS (16,645) (16,645) (3,670) (20,315) - ---------------------------------------------------------------------------------------------------------------------------------- ADJUSTED BANK BALANCE $ 999 $ 100 $ (15,720) $ (14,621) $ 11,154 $ - $ - $ (3,467) - ---------------------------------------------------------------------------------------------------------------------------------- BEGINNING CASH - PER BOOKS $ 141,530 $ 100 $ (309,728) $ (168,098) $ 20,437 (147,661) - ---------------------------------------------------------------------------------------------------------------------------------- RECEIPTS 3,008,751 456,754 3,275,942 6,741,447 6,741,447 - ---------------------------------------------------------------------------------------------------------------------------------- TRANSFERS BETWEEN ACCOUNTS - - ---------------------------------------------------------------------------------------------------------------------------------- (WITHDRAWAL)CONTRIBUTION- - - ---------------------------------------------------------------------------------------------------------------------------------- BY INDIVIDUAL DEBTOR MFR-2 - - ---------------------------------------------------------------------------------------------------------------------------------- CHECKS/OTHER DISBURSEMENTS (3,149,282) (456,754) (2,981,934) (6,587,970) (9,283) (6,597,253) - ---------------------------------------------------------------------------------------------------------------------------------- ENDING CASH - PER BOOKS $ 999 $ 100 $ (15,720) $ (14,621) $ 11,154 $ - $ - $ (3,467) ==================================================================================================================================
MOR-8 CASE NAME: STERLING PULP CHEMICALS, INC. CASE NUMBER: 01-37812-H4-11 PAYMENT TO INSIDERS AND PROFESSIONALS Of the total disbursements shown for the month, list the amount paid to insiders (as defined in Section 101(31)(A)-(F) of the U.S. Bankruptcy Code) and the professionals. Also, for insiders identify the type of compensation paid (e.g., salary, commission, bonus, etc.) (Attach additional pages as necessary.)
============================================================================================================================= Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 FILING TO INSIDERS: NAME/POSITION/COMP TYPE (2) DATE 1. $-- $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 7. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 8. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 9. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- TOTAL INSIDERS (MOR-1) $-- $-- $-- $-- $-- $-- $-- $-- === === === === === === === ===
======================================================================================================================= Apr-2002 May-2002 Jun-2002 Jul-2002 Aug-2002 Sep-2002 Oct-2002 FILING TO PROFESSIONALS DATE NAME/ORDER DATE 1. $-- $-- $-- $-- $-- $-- $-- $-- --- --- --- --- --- --- --- --- 2. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 3. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 4. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 5. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- 6. -- -- -- -- -- -- -- -- --- --- --- --- --- --- --- --- TOTAL PROFESSIONALS (MOR-1) $-- $-- $-- $-- $-- $-- $-- $-- === === === === === === === ===
(2) THE DEBTOR HAS LIMITED THE SCOPE OF ITS ANSWER TO (I) DIRECTORS, (II) OFFICERS DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SECURITIES AND EXCHANGE ACT OF 1934, (III) AFFILIATES ; AND (IV) PARTIES TO THE VOTING AGREEMENT GRANTING AUTHORITY TO DESIGNATED THE NOMINEES WHO BENEFIT FROM THE VOTING AGREEMENT. INFORMATION AS TO OFFICERS WHO ARE NOT DESIGNATED AS INSIDERS FOR PURPOSES OF SECTION 16(A) OF THE SEC ACT OF 1934 HAS BEEN COMPLIED BY THE DEBTOR AND WILL BE PROVIDED TO THE OFFICE OF THE UNITED STATES TRUSTEE AND TO THE COUNCIL FOR THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS UPON REQUEST. SUCH INFORMATION PRIMARILY RELATES TO COMPENSATION, BENEFITS AND EXPENSE REIMBURSEMENTS PAYMENTS MADE TO SUCH OFFICERS AS EMPLOYEES OF THE DEBTOR. IT IS THE POLICY OF THE DEBTOR TO PRESERVE THE CONFIDENTIALITY OF SUCH INFORMATION ON BEHALF OF ITS EMPLOYEES. (3) ALL PAYMENTS TO DIRECTORS AND OFFICERS, AS DEFINED IN FOOTNOTE (2) ABOVE, ARE MADE BY STERLING CHEMICALS, INC., A JOINTLY ADMINISTERED DEBTOR (CASE #01-37806-H4-11. MOR-9 -----END PRIVACY-ENHANCED MESSAGE-----