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