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