EX-99.3 13 a2042579zex-99_3.txt EXHIBIT 99.3 -------------------------------------------------------------------------------- OFFICE OF THE UNITED STATES TRUSTEE -------------------------------------------------------------------------------- IN RE: ) DEBTOR IN POSSESSION OPERATING REPORT ) SUPERIOR NATIONAL INSURANCE GROUP ) REPORT NUMBER 3 Page 1 of 3 ) FOR THE PERIOD FROM: 01-Jun-00 DEBTOR ) TO: 30-Jun-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, Photocopies, 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 Expenses 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.3 -------------------------------------------------------------------------------- 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 possibility 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 $1,026,085 Gross Sales for Period Subject to Sales Tax $0
----------------------------------------------------------- Post Petition Taxes Date Paid Amount Paid * Still Owing ----------------------------------------------------------- Federal Payroll and Withholding Taxes 06/09/00 & 06/23/00 $293,965 0 State Payroll and Withholding Taxes 06/09/00 & 06/23/00 $44,816 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. 3 -------------------------------------------------------------------------------- 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 ------------------------------------------------------------------- Pachuiski Stang Ziehl Young & Jones Attorney None *Latham & Watkins Attorney $64,700 ------------------------------------------------------------------- * Latham & Watkins employment has not yet been approved by the Court. 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 ---------------------------------------------------------------------------------------------------------------- 6/30/00 $2,219,893.00 $7,500.00 $7,500.00 ----------------------------------------------------------------------------------------------------------------
I, Alex Corbett, CFO, declare under penalty of perjury 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 One month ending June 30, 2000 (Unaudited)
(In thousands) Consolidated SNIG BIG SNIA SNIS Elimination Total -------- -------- -------- -------- ------------- -------- Revenues: Commission Income $ -- $ -- $ 720 $ 1,706 $ -- $ 2,426 Net Investment income 10 19 -- 96 -- 125 -------- -------- -------- -------- -------- -------- Total Revenues 10 19 720 1,802 -- 2,551 -------- -------- -------- -------- -------- -------- Expenses: Interest Expense 1,127 -- -- -- -- 1,127 General and administrative Other 44 -- 105 161 -- 310 -------- -------- -------- -------- -------- -------- Total Expenses 1,171 -- 105 161 -- 1,437 -------- -------- -------- -------- -------- -------- Income (loss) before income taxes and preferred securities dividends and accretion (1,161) 19 615 1,641 -- 1,114 Income tax (benefit) expense 61 -- -- -- -- 61 -------- -------- -------- -------- -------- -------- Income (loss) before preferred securities dividends and accretion (1,222) 19 615 1,641 -- 1,053 Preferred securities dividends and accretion (997) -- -- -- -- (997) Expenses not related to business operations: Legal and Professional Fees (320) -- -- -- -- (320) Other non-operating expenses -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- (2,539) 19 615 1,641 -- (264) Equity in income (loss) from subsidiaries 2,283 2,264 -- -- (4,539) 8 -------- -------- -------- -------- -------- -------- Net (Loss) Income $ (256) $ 2,283 $ 615 $ 1,641 $ (4,539) $ (256) ======== ======== ======== ======== ======== ========
SCHEDULE B Superior National Insurance Group, Inc. in Bankruptcy Debtor in Possession Operating Report No. 1 Aging of Accounts Payable and Recievable - 2 As of June 30, 2000
Superior National Insurance Group -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days 5,511,317 25,000 -- 934,609 Overdue 31-60 days 3,580,852 10,000 1 -- Overdue 61-90 days -- 40,000 -- 3,080,486 Overdue 91-120 days -- 35,000 -- 1,585,540 Overdue 121+ days -- 582,158 -- 4,593,642 -------------------------------------- ------------------------------------- Total $9,092,169 $ 672,158 $ 1 $10,174,278 -------------------------------------- ------------------------------------- Business Insurance Group -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days 16,227 98,812 -- -- Overdue 31-60 days 215 29,524 -- 1 Overdue 61-90 days -- 3,058 -- -- Overdue 91-120 days 18,770 -- -- -- Overdue 121+ days -- 517,144 -- 14,961,591 -------------------------------------- ------------------------------------- Total $ 35,212 $ 748,538 $ -- $14,961,592 -------------------------------------- ------------------------------------- Superior National Insurance Services -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days 5,900,339 2,718,937 73,517 201,832 Overdue 31-60 days 6,919,765 2,015,904 -- -- Overdue 61-90 days -- 3,406,140 -- 8,594 Overdue 91-120 days -- 2,339,677 -- 14,903 Overdue 121+ days -- 5,865,562 -- 303,520 -------------------------------------- ------------------------------------- Total $12,820,104 $17,349,421 $ 73,517 $ 526,849 -------------------------------------- ------------------------------------- Superior National Insurance Administrators -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days 19,661 1,220,544 933,167 -- Overdue 31-60 days 744,858 1,505,241 -- -- Overdue 61-90 days -- 2,104,118 -- -- Overdue 91-120 days -- 2,456,479 -- 8,079 Overdue 121+ days -- 4,835,723 -- 88,665 -------------------------------------- ------------------------------------- Total $ 764,519 $12,122,104 $ 933,167 $ 96,744 -------------------------------------- ------------------------------------- Consolidated -------------------------------------- ------------------------------------- Non-Intercompany Accounts Intercompany Accounts -------------------------------------- ------------------------------------- Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable -------------------------------------- ------------------------------------- Current Under 30 days 11,447,544 4,063,293 1,006,684 1,136,441 Overdue 31-60 days 11,245,690 3,560,669 1 1 Overdue 61-90 days -- 5,553,316 -- 3,087,080 Overdue 91-120 days 18,770 4,831,356 -- 1,586,521 Overdue 121+ days -- 12,883,588 -- 19,947,418 -------------------------------------- ------------------------------------- Total $22,712,004 $30,892,221 $1,006,685 $25,759,462 -------------------------------------- -------------------------------------
SCHEDULE C JUNE 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 07/01/00 2 $44,443.56 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 07/20/00 See Note A Equity Office Properties Monthly $ 20,026.42 08/01/00 None HQ Boca Raton N/A N/A N/A N/A IKON Office Solutions Inc. / IOS Capital Monthly Various Various See Note B Kilroy Realty Corp. Monthly $153,583.82 07/01/00 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 08/01/00 None Stringer business Systems Inc. Monthly Various Various See Note B Tiger Ventura County Monthly $ 16,795.17 08/01/00 None Toshiba America Information Sys. Monthly Various Various See Note B Zodiac Development Monthly $ 9,454.31 08/01/00 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 07/01/00 None Colony Realty N/A N/A N/A N/A Dell Financial Services Monthly $ 48,476.08 07/15/00 See Note A Filenet Corporation - lease was sold to Principal Management N/A N/A N/A N/A Kaiser-Francis Oil Company Monthly $ 3,778.00 08/01/00 None Mack Cali Realty / 500 Columbia Tpk Assoc. LLC Monthly $ 9,245.77 08/01/00 None Principal Management Corporation / GCI CAPITAL, INC. Monthly $ 30,827.28 07/01/00 None Service Resource Industries / Wall Street Office Business, Inc. Monthly $ 4,230.00 No more pmts due None SP Environmental Systems / Union Pacific RR Co. Monthly $ 12,465.16 08/01/00 None Transwestern CG Partner Monthly $ 5,908.75 08/01/00 None US Orthopedic Sublease of Union Pacific RR Co. Woodland III Holdings, LLC N/A N/A N/A N/A ------------------------------------------------------------------------------------------------------------------------------------
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 June 30, 2000
----------------------------------------------------------------------------------------------------------------------------- Amount of Policy Premium Paid State Carrier Agent Coverage Exp. Date Thru Date ----------------------------------------------------------------------------------------------------------------------------- Arizona Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 30-Jun-00 Arkansas Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 30-Jun-00 California State Compensation Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 01-Jun-01 30-Jun-00 Colorado Pinnacol Assurance Di Buduo & De Fendis Insurance Group Statutory 01-Jun-01 30-Jun-00 Florida Florida W/C Joint Underwriting Association, Inc. Di Buduo & De Fendis Insurance Group Statutory 09-Jun-01 30-Jun-00 Georgia Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 30-Jun-00 Illinois Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 30-Jun-00 Indiana Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 13-Jul-01 30-Jun-00 Kansas Travelers Insurance Company Di Buduo & De Fendis Insurance Group Statutory 11-Aug-01 30-Jun-00 Louisiana Louisiana W/C Corporation Di Buduo & De Fendis Insurance Group Statutory 31-May-01 30-Jun-00 Missouri Travelers Property & Casualty Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 30-Jun-00 New Jersey Granite State Insurance Company Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 30-Jun-00 New Mexico New Mexico Mutual Casualty Company Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 30-Jun-00 New York The State Insurance Fund (N.Y.) Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 02-Jun-01 Oklahoma State Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 01-Jul-01 01-Jul-01 Oregon Liberty Northwest Insurance Corporation Di Buduo & De Fendis Insurance Group Statutory 01-Jul-01 30-Jun-00 Pennsylvania State Workrmen's Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 03-Jun-01 Tennessee The Cincinnati Insurance Companies Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 30-Jun-00 Texas Texas W/C Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 16-Jul-01 01-Jun-01 Utah Worker's Compensation Fund of Utah Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 03-Jun-01 Wisconsin Tri-State Insurance Company of Minnesota Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 03-Jun-01 New Jersey Centre Insurance Company Di Buduo & De Fendis Insurance Group Statutory 01-Jun-00 01-Jun-00 All Other State Centre Insurance Company Di Buduo & De Fendis Insurance Group Statutory 01-Jun-00 01-Jun-00
Note: Within all of the policies identified above the following entities are covered for Workers' Compensation: SNIG, BIG, SNIA, and SNIS. June 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 (run-off) Reliance $5,000,000 5/1/03 5/1/03 Lloyd's of London $5,000,000 xs $5,000,000 Gulf Insurance Company $10,000,000 xs $10,000,000 Executive Risk Indemnity $10,000,000 xs $20,000,000 Philadelphia Indemnity $10,000,000 xs $30,000,000 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 insurable 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