EX-99.1 11 a2042579zex-99_1.txt EXHIBIT 99.1 -------------------------------------------------------------------------------- OFFICE OF THE UNITED STATES TRUSTEE -------------------------------------------------------------------------------- IN RE: ) DEBTOR IN POSSESSION OPERATING REPORT ) SUPERIOR NATIONAL INSURANCE GROUP ) REPORT NUMBER 1 Page 1 of 3 ) FOR THE PERIOD FROM: 26-Apr-00 DEBTOR ) TO: 30-Apr-00 ___________________________________) _________________________________________ ) CHAPTER 11 CASE NO. SV00-14099-GM ) ___________________________________) 1. Profit and Loss Statement Please see Attached Schedule A A. Related to Business Operations: Gross Sales _____________ Less Sales Returns and Discounts _____________ Net Sales ____________ Less: Cost of Goods Sold Beginning Inventory at Cost _____________ Add: Purchases _____________ Less: Ending Inventory at Cost _____________ Cost of Goods Sold _____________ Gross Profit ____________ Other Operating Revenue (Specify) ____________ Less: Operating Expenses Officer Compensation _____________ Salaries & Wages - Other Employees _____________ Total Salaries & Wages _____________ Employee Benefits _____________ Payroll Taxes _____________ Real Estate Taxes _____________ Federal and State Income Taxes _____________ Total Taxes _____________ Rent and Lease Exp. (Real and Personal Property) _____________ Interest Expense (Mortgage, Loan, etc.) _____________ Insurance _____________ Automobile Expense _____________ Utilities (Gas, Electric, Water, Telephone, etc.) _____________ Depreciation and Amortization _____________ Repairs and Maintenance _____________ Advertising _____________ Supplies, Office Expenses, Photocopiers, etc. _____________ Bad Debts _____________ Miscellaneous Operating Expenses (Specify) _____________ Total Operating Expenses _____________ Net Gain/(Loss) from Business Operations ____________ B. Not Related to Business Operations ____________ Income: Interest Income _____________ Other Non-Operating Revenues (Specify) _____________ Gross Proceeds on Sale of Assets _____________ Less: Original Cost of Assets plus Expense of Sale _____________ Net Gain/(Loss) on Sale of Assets _____________ Total Non-Operating Income ____________ Expenses Not Related to Business Operations: Legal and Professional Fees _____________ Other Non-Operating Revenues (Specify) _____________ Total Non-Operating Expenses ____________ NET INCOME/(LOSS) FOR PERIOD ============
-------------------------------------------------------------------------------- Revised April 1989 OPERATING REPORT UST-4 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- DEBTOR IN POSSESSION OPERATING REPORT NO.1 -------------------------------------------------------------------------------- Page 2 of 3 2. Aging of Accounts Payable and Receivable (exclude pre-petition debt from accounts payable): ----------------------------------------- Accounts Payable Accounts Receivable ----------------------------------------- Current Under 30 days $0 $0 Overdue 31-60 days $0 $0 Overdue 61-90 days PLEASE SEE ATTACHED SCHEDULE B Overdue 91-120 days $0 $0 Overdue 121+ days $0 $0 Total $0 $0 ----------------------------------------- 3. Statement of Status of Payments to Secured Creditors and Lessors:
---------------------------------------------------------------------------------------------------- Post-Petition Frequency of Payments Not Made Payments per Amount of -------------------- Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount ---------------------------------------------------------------------------------------------------- SEE ATTACHED SCHEDULE C ----------------------------------------------------------------------------------------------------
* The Debtor acknowledges the possiblity of additional leases and is currently researching its records. Any new identified lessors will be included in future reports. 4. Tax Liability: Gross Payroll Expense For Period $539,248 Gross Sales for Period Subject to Sales tax $0
----------------------------------------------------------- Post Petition Taxes Date Paid Amount Paid * Still Owing ----------------------------------------------------------- Federal Payroll and Withholding Taxes 04/28/00 $160,052 0 State Payroll and Withholding Taxes 04/28/00 $25,815 0 State Sales and Use Tax N/A $0 N/A Real Property Taxes N/A $0 N/A -----------------------------------------------------------
ALL PAYROLL TAXES PAID BY ADP * Attach photocopies of depository receipts from taxing authority or financial institution to verify that such deposits or payments have been made. 5. Insurance Coverage
----------------------------------------------------------- Carrier/ Amount of Policy Premium Paid Agent Coverage Exp. Date Thru Date ----------------------------------------------------------- Worker's Compensation See Schedule D Liability See Schedule E Fire and Extended Coverage See Schedule E Property See Schedule E Theft See Schedule E Life (Beneficiary:_________________) See Schedule E Vehicle See Schedule E Other See Schedule E -----------------------------------------------------------
-------------------------------------------------------------------------------- DEBTOR IN POSSESSION OPERATING REPORT NO. 1 -------------------------------------------------------------------------------- 6. Questions: A. Has the Debtor provided to any officers, directors, shareholders, or other principals compensation without the approval of the Office of the United States Trustee? ______: Yes Explain: ______________________________________ ___X__: No B. Has the Debtor, subsequent to the filing of the petition made any payments on its pre-petition unsecured debt, except as have been authorized by the Court? ______: Yes Explain: ______________________________________ ___X__: No 7. Statement of Unpaid Professional Fees (Post-Petition Only): ----------------------------------------------------------------------- Type Post-Petition Name of Professional Professional Unpaid Total ----------------------------------------------------------------------- Pachulski Stang Ziehl Young & Jones Attorney None Latham & Watkins Attorney None ----------------------------------------------------------------------- 8. Narrative Report of Significant Events And Events Out Of The Ordinary Course Of Business: 9. Quarterly Fees: (This Fee must be paid to the United States Trustee every calendar quarter)
---------------------------------------------------------------------------------------------------------------- Quarterly Quarterly Disbursements Quarterly Quarterly Period Ending for Quarter Fee Date Paid Amount Paid Check No. Fee Still Owing ---------------------------------------------------------------------------------------------------------------- N/A N/A N/A N/A N/A N/A N/A ----------------------------------------------------------------------------------------------------------------
I, Alex Corbett, CFO, declare under penalty that the information contained in the above Debtor in Possession Operating Report is true and complete to the best of my knowledge. Dated 10/11/00 Signed /s/ Alex Corbett -------- ------------------------- SCHEDULE A SNIG, BIG, SNIA and SNIS Schedule of Operations For the Period April 26-30, 2000 (Unaudited)
(In thousands) Consolidated SNIG BIG SNIA SNIS Elimination Total -------- -------- -------- -------- ------------- ------------ Revenues: Commission Income $ -- $ -- $ 170 $ 458 $ -- $ 629 Net investment income 2 (0) -- -- -- 2 -------- -------- -------- -------- -------- -------- Total Revenues 2 (0) 170 458 -- 631 -------- -------- -------- -------- -------- -------- Expenses Interest expenses 180 -- -- -- -- 180 General and administrative Other (29) -- 9 12 -- (8) -------- -------- -------- -------- -------- -------- Total Expenses 151 -- 9 12 -- 172 -------- -------- -------- -------- -------- -------- Income (loss) before income taxes and preferred securities dividends and accretion (149) (0) 161 446 -- 459 Income tax (benefit) expense (0) -- -- -- -- (0) -------- -------- -------- -------- -------- -------- Income (loss) before preferred securities dividends and accretion (149) (0) 161 446 -- 459 Preferred securities dividends and accretion (166) -- -- -- -- (166) Expenses not related to business operations: Legal and Professional Fees (67) -- -- -- -- (67) Other non-operating expenses -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- (381) (0) 161 446 -- 226 Equity in net income (loss) from subsidiaries 612 612 -- -- (1,219) 4 -------- -------- -------- -------- -------- -------- Net (Loss) Income $ 230 $ 611 $ 161 $ 446 $ (1,219) $ 230 ======== ======== ======== ======== ======== ========
SCHEDULE B Superior National Insurance Group, Inc. in Bankruptcy Debtor in Possession Operating Report No. 1 Aging of Accounts Payable and Receivable - 2 April 26, 2000 thru April 30, 2000
Superior National Insurance Group -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days -- 40,000 -- 3,080,486 Overdue 31-60 days -- 35,000 -- 1,565,540 Overdue 61-90 days -- -- -- 1,586,115 Overdue 91-120 days -- 40,096 -- 3,134,822 Overdue 121+ days -- 1,414,432 -- -- -------------------------------------- ------------------------------------- Total $ -- $ 1,529,527 $ -- $ 9,366,963 -------------------------------------- ------------------------------------- Business Insurance Group -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days -- 3,058 -- -- Overdue 31-60 days 18,770 -- -- -- Overdue 61-90 days -- 112,732 -- -- Overdue 91-120 days -- 58,552 -- -- Overdue 121+ days -- 3,913,987 -- 12,779,619 -------------------------------------- ------------------------------------- Total $ 18,770 $ 4,088,329 $ -- $12,779,619 -------------------------------------- ------------------------------------- Superior National Insurance Services -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days -- 12,143,919 -- 6,594 Overdue 31-60 days -- 14,934,759 -- 14,903 Overdue 61-90 days -- 12,158,754 -- -- Overdue 91-120 days -- 9,217,907 -- 303,520 Overdue 121+ days -- 3,256,020 -- -- -------------------------------------- ------------------------------------- Total $ -- $51,711,359 $ -- $ 325,017 -------------------------------------- ------------------------------------- Superior National Insurance Administrators -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days -- 2,840,612 -- -- Overdue 31-60 days -- 1,335,544 -- 8,079 Overdue 61-90 days -- 669,010 -- -- Overdue 91-120 days -- 5,002,843 -- 88,665 Overdue 121+ days 13,709 -- -- -- -------------------------------------- ------------------------------------- Total $ 13,709 $ 9,847,809 $ -- $ 96,764 -------------------------------------- ------------------------------------- Consolidated -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days -- 15,027,589 -- 3,087,080 Overdue 31-60 days 18,770 16,305,303 -- 1,588,521 Overdue 61-90 days -- 12,940,496 -- 1,586,115 Overdue 91-120 days -- 14,319,198 -- 3,527,007 Overdue 121+ days 13,709 8,584,439 -- 12,779,619 -------------------------------------- ------------------------------------- Total $ 32,479 $67,177,024 $ -- $22,568,342 -------------------------------------- -------------------------------------
SCHEDULE C APRIL 26-30, 2000 SNIG 3. Statement of Status of Payments to Secured Creditors and Lessors:
------------------------------------------------------------------------------------------------------------------------------------ Post-Petition Frequency of Payments Not Made Payments per Amount of --------------------------- Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount ------------------------------------------------------------------------------------------------------------------------------------ BancBoston Leasing Inc. / Fleet Capital Leasing Monthly $235,337.00 05/01/00 None Bemiston Tower, Inc. PM Realty Advisor Monthly $ 5,111.33 06/01/00 None Citizens Leasing Corporation Monthly See BIG's schedule for details Dell Financial Services Monthly $ 8,264.07 05/20/00 See Note A Equity Office Properties Monthly $ 20,026.42 06/01/00 None HQ Boca Raton Monthly $ 4,960.90 06/01/00 None IKON Office Solutions Inc. / IOS Capital Monthly Various Various See Note B Kilroy Realty Corp. Monthly $153,583.82 05/01/00 None Neopost Monthly Various Various See Note B Pitney Bowes Credit Corp. Monthly Various Various See Note B Sharp Electronics Credit Co. Monthly $ 350.33 06/01/00 None Stringer Business Systems Inc. Monthly Various Various See Note B Tiger Ventura County Monthly $ 16,795.17 06/01/00 None Toshiba America Information Sys. Monthly Various Various See Note B Zodiac Development Monthly $ 9,454,31 06/01/00 None ------------------------------------------------------------------------------------------------------------------------------------
Note A: Payments on various Dell leases have been paid on a monthly basis; however, due to billing discrepancies the actual amounts paid are being confirmed with Dell Financial Services. Note B: Various copier and postal equipment lease payment history is presently being researched. BIG 3. Statement of Status of Payments to Secured Creditors and Lessors:
------------------------------------------------------------------------------------------------------------------------------------ Post-Petition Frequency of Payments Not Made Payments per Amount of --------------------------- Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount ------------------------------------------------------------------------------------------------------------------------------------ Citizens Leasing Corporation Monthly $206,798.26 05/01/00 None Dell Financial Services Monthly $ 48,476.06 05/15/00 See Note A Kaiser-Francis Oil Company Monthly $ 3,620.58 06/01/00 None Mack Cali Realty / 500 Columbia Tpk Assoc. LLC Monthly $ 9,249.23 06/01/00 None Principal Management Corporation / GCI CAPITAL, INC. Monthly $ 30,827.28 05/01/00 None Service Resource Industries / Wall Street Office Business, Inc. Monthly $ 4,230.00 06/01/00 None SP Environmental Systems / Union Pacific RR Co. Monthly $ 12,465.16 06/01/00 None Transwestern CG Partner Monthly $ 5,908.75 06/01/00 None ------------------------------------------------------------------------------------------------------------------------------------
Note A: Payments on various Dell leases have been paid on a monthly basis; however, due to billing discrepancies the actual amounts paid are being confirmed with Dell Financial Services. Superior National Insurance Group, Inc. in Bankruptcy SCHEDULE D Debtor in Possession Operating Report No. 1 Insurance Coverage - 5 As of April 30, 2000
----------------------------------------------------------------------------------------------------------------------------- Amount of Policy Premium Paid State Carrier Agent Coverage Exp Date Thru Date ----------------------------------------------------------------------------------------------------------------------------- New Jersey Centre Insurance Company Di Buduo & De Fendis Insurance Group Statutory 01-Jun-00 30-Apr-00 All Other State Centre Insurance Company Di Buduo & De Fendis Statutory 01-Jun-00 30-Apr-00
Note: Within all of the policies identified above the following entities are covered for Workers' Compensation: SNIG, BIG, SNIA, and SNIS. April 30, 2000 Schedule E
Policy Exp. Premium paid Company Agent Type of Insurance Amount of Coverage Date thru date ------- ----- ----------------- ------------------ ----------- ----------- SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Commercial General Liability Package General Liability $1 million per occurence 10/1/00 10/1/00 $2 million aggregate Advertising Injury $1 million Employee Benefit Liability $1 million per claim $2 million aggregate SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Automobile Liability $1 million 12/10/00 12/10/00 Medical $5,000 Uninsured Motorist $500,000 Physical Damage Actual value less $500 deductible SNIG, BIG, SNIS, & SNIA Carpenter Moore Directors & Officers $90 million 5/1/00 5/1/00 SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Employer Practice Liability $1 million per loss 12/10/00 12/10/00 & in the aggregate SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Fiduciary Liability $5 million per loss 12/10/00 12/10/00 & in the aggregate SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Fidelity Bond $5 million 12/10/00 12/10/00 SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Commercial Umbrella $20 million per occurence 12/10/00 12/10/00 $20 million aggregate SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Excess Liability $10 million per occurence 12/10/00 12/10/00 $10 million aggregate SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Difference in Condition $10 million per occurrence 12/10/00 12/10/00 $10 million aggregate *$25,000 deductible, minimum and 9% of total ??? property SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Difference in Condition $10 million 12/10/00 12/10/00 Excess SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Accident Policy $1 million to $3 million 1/1/01 1/1/01 (Life/Travel) (depends on rank of officer) BIG only DiBudio & DeFendis Professional Liability Run Off $10 million per loss 12/10/00 12/10/00 BIG companies only/acts b/f & in the aggregate 12/10/99 * $500,000 deductible