-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IXrp4f4AEyw7lyZ7DACdF+f3oiJBufvovpcjK985UBqfSZOJOBfSj1zwdPBshmc5 0JToqJMmWuC0tpdqc1W/7A== 0000950152-03-008991.txt : 20031022 0000950152-03-008991.hdr.sgml : 20031022 20031022155423 ACCESSION NUMBER: 0000950152-03-008991 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031020 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031022 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KENTUCKY ELECTRIC STEEL INC /DE/ CENTRAL INDEX KEY: 0000910394 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 611244541 STATE OF INCORPORATION: DE FISCAL YEAR END: 0927 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22416 FILM NUMBER: 03951969 BUSINESS ADDRESS: STREET 1: P O BOX 3500 CITY: ASHLAND STATE: KY ZIP: 41105-3500 BUSINESS PHONE: 606-929-1222 MAIL ADDRESS: STREET 1: P O BOX 3500 CITY: ASHLAND STATE: KY ZIP: 41105-3500 8-K 1 l03671ae8vk.txt KENTUCKY ELECTRIC STEEL, INC. | FORM 8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): October 20, 2003 KENTUCKY ELECTRIC STEEL, INC. (Exact Name of Registrant as Specified in its Charter) DELAWARE 0-22416 61-1244541 (State or Other Jurisdiction of (Commission File Number) (IRS Employer Incorporation) Identification Number) P.O. Box 3500 Ashland, Kentucky 41105-3500 (Address of Principal Executive Office) Registrant's telephone number, including area code: (606) 929-1222 ================================================================================ ITEM 5. OTHER EVENTS Kentucky Electric Steel, Inc. (the "Company") is filing this Current Report on form 8-K for the purpose of filing with the Securities and Exchange Commission the Company's monthly operating report to the U.S. Bankruptcy Court for the Eastern District of Kentucky for the period from August 31, 2003 through September 27, 2003, which was filed with the Bankruptcy Court on October 20, 2003. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) The following exhibit is filed as part of this report on Form 8-K. Exhibit Number Description - ------ ----------- 99.1 Monthly Operating Report to the U.S. Bankruptcy Court for the Eastern District of Kentucky for period from August 31, 2003 through September 27, 2003 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KENTUCKY ELECTRIC STEEL, INC. Date: October 21, 2003 By: /s/ William J. Jessie --------------------------------------------- Name: William J. Jessie Title: President and Chief Operating Officer EX-99.1 3 l03671aexv99w1.txt EX-99.1 United States Bankruptcy Court Eastern District Of Kentucky Ashland Division IN RE: CASE NO. 03-10078 DEBTOR(S) CHAPTER 11 Monthly Operating Report For Month Ending September 27, 2003 Comes now Ashland Steel Liquidating Company, fka Kentucky Electric Steel, Inc., debtor in possession and herby submits its Monthly Operating Report for the Periods commencing August 31, 2003 and ending September 27, 2003 as shown by the report and exhibits consisting of 14 pages and containing the following, as indicated: ___X____ Monthly Reporting Questionnaire (Attachment 1) ___X____ Comparative Balance Sheets (Forms OPR - 1 & OPR - 2) ___X____ Summary of Accounts Receivable (Form OPR - 3) ___X____ Schedule of Post - Petition Liabilities (Form OPR - 4) ___X____ Statement of Income (Loss) Form OPR - 5) ___X____ Statement of Sources and Uses of Cash (Form OPR - 6) I declare under penalty of perjury that this report and all attachments are true and correct to the best of my knowledge and belief. I also hereby certify that the original Monthly Operating Report was filed with the Bankruptcy Court Clerk and a copy was delivered to the U.S. Trustee. Date: October 20, 2003 DEBTOR ---------------- By: /s/ William J. Jessie ------------------------------------------- (Signature) Name & Title: William J. Jessie, President ---------------------------------- (Print or Type) Address: US Route 60 --------------------------------------- Ashland, KY 41101 ------------------------------------------------ Telephone Number: (606) 929 - 1200 ------------------------------- Attachment 1 (Page 1) Chapter 11 Monthly Operating Report Monthly Reporting Questionnaire CASE NAME: Ashland Steel Liquidating Company fka Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 MONTH OF: SEPTEMBER 1. Payroll - State the amount of all executive wages paid and taxes withheld and paid
Name and Title of Executive Wages Paid Taxes (1) --------- ---------------------------- ------------------------------- Gross Net Due Paid ----- --- --- ---- William J. Jessie - $ 5,860 $ 4,041 $ 3,808 $ 3,808 (President and CFO) - ---------------------------------------------------------------------------------------------------------------------------- William H. Gerak - - - - - (Vice President of Administration) - ---------------------------------------------------------------------------------------------------------------------------- Joseph E. Harrison - - - - - (Vice President of Sales and Marketing) - ---------------------------------------------------------------------------------------------------------------------------- Jack W. Mehalko - - - - - (Interim President) - ---------------------------------------------------------------------------------------------------------------------------- Total Executive Payroll: $ 5,860 $ 4,041 $ 3,808 $ 3,808 -----------------------------------------------------------------------------
2. Insurance - Is workers' compensation and other insurance in effect? Yes Are ----- Payments Current? Yes If any policy has lapsed, been replaced or renewed, ----- state so in the schedule below. Attach a copy of the new policy's binder pr cover page.
(2) Name of Coverage Expiration Premium Date of Coverage Pd. Type Carrier Amount Policy # Date Amounts Through - ---- ------- ------ -------- ---- ------- ------- Casualty: __________________________________________________________________________ Workers Comp. __________________________________________________________________________ General Liability: __________________________________________________________________________ Vehicle: __________________________________________________________________________ Other (Specify) __________________________________________________________________________
(1) Taxes include payments made by the employer. (2) The Company completed the sale of substantially all of its assets on September 2, 2003 and is currently in the process of canceling appropriate insurance policies. Attachment 1 (Page 2) Chapter 11 Monthly Operating Report Monthly reporting Questionnaire CASE NAME: Ashland Steel Liquidating Company fka Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 MONTH OF: SEPTEMBER 3. Bank Accounts Account Type ------------------------------------------------ Operating Tax Payroll Other Total --------- ---------- ------- -------- ------- Bank Name See attached Exhibit A ------------ ---------- ------- -------- Account # ------------ ---------- ------- -------- Beginning Book Balance ------------ ---------- ------- -------- ------- Plus: Deposits ------------ ---------- ------- -------- ------- Less: Disbursements ------------ ---------- ------- -------- ------- Other: Transfers - ----------------------- ------------ ---------- ------- -------- ------- Ending Book Balance ------------ ---------- ------- -------- ------- 4. Postpetition Payments - List any postpetition payments to professionals and payments on prepetition debts in the schedule below (attach separate sheet if necessary) Payments To - ----------- Professionals (attorneys, accountants, etc.): Amount Date Check # --------------- ---------- -------------------- - -------------------------- --------------- ---------- -------------------- - -------------------------- --------------- ---------- -------------------- TOTAL $ - Prepetition Creditors: Revolving line of Credit (National City & SunTrust) (1) $(58,069) Daily Swept out of Lockbox - -------------------------- --------------- ---------- -------------------- - -------------------------- --------------- ---------- -------------------- - -------------------------- --------------- ---------- -------------------- - -------------------------- --------------- ---------- -------------------- - -------------------------- --------------- ---------- -------------------- TOTAL $(58,069) (1) Represents amount escrowed for senior note holders in previous month that was reflected as paydown on revolving line of credit in prior report. ASHLAND STEEL LIQUIDATING COMPANY FKA KENTUCKY ELECTRIC STEEL, INC. CASH SUMMARY FOR THE MONTH ENDING SEPTEMBER 27, 2003 EXHIBIT A
Workers Cash Collateral Triton/ Office Compensation Lockbox General Republic Note Tax/Other Account ------------ --------------- ----------- ------------- ----------- ------------- Bank Name National City National City National City National City Bank One National City Private Client Group Account # 754202055 754119200 70936836 4090-K001-00-7 626225676 39353008 98239 626225668 (2) Beginning Book Balance $ 100,000 $ 202,185 $(6,816,804) $ 137,961 $ 4,426 $ 44,491 Plus: Deposits - 2,700,228 - 231 - - Less: Disbursements - - 14,556 750 4,457 9,155 Transfers/Other: Transfers Transfer to Fee Account (2,650,000) Transfer to Bank One Tax Account (4,200) 4,200 Other Paydown on line/fund general account 39,313 (39,313) ----------- ----------- ----------- ----------- ----------- ----------- Ending Book Balance $ 100,000 $ 291,726 $(6,874,873) $ 137,442 $ 4,169 $ 35,336 =========== =========== =========== =========== =========== =========== Professional Fee Total Fees Account Account All Accounts ------------ ----------- ------------ Bank Name National City National City Account # 754201618 754201618 (2) Beginning Book Balance $ 100,425 $ 250,000 $(5,977,316)(1) Plus: Deposits - - 2,700,459 Less: Disbursements - - 28,918 Transfers/Other: Transfers Transfer to Fee Account 2,650,000 - Transfer to Bank One Tax Account - Other Paydown on line/fund general account - ----------- ----------- ----------- Ending Book Balance $ 100,425 $ 2,900,000 $(3,305,775) =========== =========== =========== (3)
(1) The cash summary reconciles to the Monthly Operating Report as follows:
August 30, 2003 September 27, 2003 Cash $ 186,878 $ 176,947 Restricted Cash 652,610 3,392,151 ----------- ----------- Total Cash $ 839,488 $ 3,569,098 =========== =========== The cash balance per this schedule is as follows: Total Cash per Above $(5,977,316) $(3,305,775) Less: Amount Reported as Line of Credit (6,816,804) (6,874,873) ----------- ----------- Cash Balance (2) $ 839,488 $ 3,569,098 =========== ===========
(2) The $250,000 opening balance in the fee account was recorded as a paydown on debt at August 30, 2003. A reclassification was made in the September Monthly Operating Report to increase beginning cash in the fee account and debt by $250,000. (3) As authorized by the Court, $2,205,000 of the sales proceeds were distributed to the secured lenders on October 7, 2003. CASE NAME: Ashland Steel Liquidating Company COMPARATIVE BALANCE SHEET FORM OPR - 1 fka Kentucky Electric Steel, Inc. REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: SEPTEMBER
February 5, March 1, March 29 , May 3, May 31, 2003 2003 2003 2003 2003 ----------- ----------- ----------- ----------- ----------- ASSETS CURRENT ASSETS Other Negotiable instruments (i.e.. CD's T-Bills) $ - $ - $ - ----------- ----------- ----------- ----------- ----------- Accounts receivable (See OPR - 3) 9,734,029 8,478,039 5,972,687 2,842,297 2,149,555 ----------- ----------- ----------- ----------- ----------- Less allowance for doubtful accounts - - - - - ----------- ----------- ----------- ----------- ----------- Inventory, at lower of cost or market 10,346,543 7,815,001 2,462,067 - - ----------- ----------- ----------- ----------- ----------- Prepaid expenses and deposits 2,813,034 2,462,924 1,881,542 1,811,666 1,592,967 ----------- ----------- ----------- ----------- ----------- Investments - - - - - ----------- ----------- ----------- ----------- ----------- Other: Operating Supplies, rolls, molds, etc 4,203,699 4,203,699 4,203,699 4,203,699 4,203,699 ----------- ----------- ----------- ----------- ----------- Cash and Restricted cash 1,092,575 1,931,782 1,291,023 1,433,979 1,475,449 ----------- ----------- ----------- ----------- ----------- Other Assets 64,794 61,294 60,935 50,953 49,510 ----------- ----------- ----------- ----------- ----------- TOTAL CURRENT ASSETS $28,254,674 $24,952,739 $15,871,953 $10,342,594 $ 9,471,180 ----------- ----------- ----------- ----------- ----------- PROPERTY PLANT AND EQUIPMENT, $ - $ - $ - $ - $ - ----------- ----------- ----------- ----------- ----------- AT COST Less accumulated depreciation - - - - - ----------- ----------- ----------- ----------- ----------- NET PROPERTY PLANT AND EQUIPMENT $19,452,338 $19,452,338 $19,452,338 $19,452,338 $19,452,338 ----------- ----------- ----------- ----------- ----------- Other non current assets 307,958 304,232 260,771 260,771 260,771 ----------- ----------- ----------- ----------- ----------- Deferred finance charges 558,815 - - - - ----------- ----------- ----------- ----------- ----------- TOTAL ASSETS $48,573,785 $44,709,309 $35,585,062 $30,055,703 $29,184,289 ----------- ----------- ----------- ----------- ----------- June 28, August 2, August 30, September 27, 2003 2003 2003 2003 ----------- ----------- ----------- ----------- ASSETS CURRENT ASSETS Other Negotiable instruments (i.e.. CD's T-Bills) ----------- ----------- ----------- ----------- Accounts receivable (See OPR - 3) 1,866,505 169,979 73,728 58,513 ----------- ----------- ----------- ----------- Less allowance for doubtful accounts - - - - ----------- ----------- ----------- ----------- Inventory, at lower of cost or market - - - - ----------- ----------- ----------- ----------- Prepaid expenses and deposits 1,320,071 1,045,001 560,434 502,884 ----------- ----------- ----------- ----------- Investments - - - - ----------- ----------- ----------- ----------- Other: Operating Supplies, rolls, molds, etc 4,203,699 4,203,699 4,203,699 - ----------- ----------- ----------- ----------- Cash and Restricted cash 1,195,760 1,063,461 839,488 3,569,098 ----------- ----------- ----------- ----------- Other Assets 49,510 53,411 38,428 39,789 ----------- ----------- ----------- ----------- TOTAL CURRENT ASSETS $ 8,635,545 $ 6,535,551 $ 5,715,777 $ 4,170,284 ----------- ----------- ----------- ----------- PROPERTY PLANT AND EQUIPMENT, $ - $ - $ - $ - ----------- ----------- ----------- ----------- AT COST Less accumulated depreciation - - - - ----------- ----------- ----------- ----------- NET PROPERTY PLANT AND EQUIPMENT $19,354,479 $19,354,479 $19,354,479 $ - ----------- ----------- ----------- ----------- Other non current assets 260,771 260,771 260,771 260,771 ----------- ----------- ----------- ----------- Deferred finance charges - - - - ----------- ----------- ----------- ----------- TOTAL ASSETS $28,250,795 $26,150,801 $25,331,027 $ 4,431,055 ----------- ----------- ----------- -----------
* Itemize if value of "Other Assets" exceed 10% of "Total Assets." FORM OPR - 2 CASE NAME: Ashland Steel Liquidating Company COMPARATIVE BALANCE SHEET REV 2/90 fka Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 MONTH ENDED: SEPTEMBER
February 5, March 1, March 29, May 3, May 31, 2003 2003 2003 2003 2003 ------------ ------------ ------------ ------------ ------------ LIABILITIES POST PETITION LIABILITIES $ 204,746 $ 702,564 $ 947,405 $ 1,111,679 $ 1,303,592 ------------ ------------ ------------ ------------ ------------ PRE PETITION LIABILITIES Priority Debt 2,629,975 2,592,107 2,098,489 2,068,489 2,068,489 ------------ ------------ ------------ ------------ ------------ Secured Debt 30,530,705 27,658,910 23,544,655 19,613,859 19,021,483 ------------ ------------ ------------ ------------ ------------ Unsecured Debt 9,426,688 9,433,310 8,691,905 8,301,017 8,301,017 ------------ ------------ ------------ ------------ ------------ TOTAL PRE PETITION LIABILITIES $ 42,587,368 $ 39,684,328 $ 34,335,049 $ 29,983,364 $ 29,390,988 ------------ ------------ ------------ ------------ ------------ TOTAL LIABILITIES $ 42,792,114 $ 40,386,892 $ 35,282,454 $ 31,095,043 $ 30,694,580 ------------ ------------ ------------ ------------ ------------ SHAREHOLDERS' EQUITY (DEFICIT) PREFERRED STOCK $ - $ - $ - ------------ ------------ ------------ ------------ ------------ COMMON STOCK 50,516 50,516 50,516 50,516 50,516 ------------ ------------ ------------ ------------ ------------ PAID-IN CAPITAL 15,817,342 15,817,342 15,817,342 15,817,342 15,817,342 ------------ ------------ ------------ ------------ ------------ TREASURY STOCK (4,309,397) (4,309,397) (4,309,397) (4,309,397) (4,309,397) ------------ ------------ ------------ ------------ ------------ RETAINED EARNINGS ------------ ------------ ------------ ------------ ------------ Through filing date (5,776,790) (5,776,790) (5,776,790) (5,776,790) (5,776,790) ------------ ------------ ------------ ------------ ------------ Post filing date - (1,459,254) (5,479,063) (6,821,011) (7,291,962) ------------ ------------ ------------ ------------ ------------ TOTAL SHAREHOLDERS' EQUITY $ 5,781,671 $ 4,322,417 $ 302,608 $ (1,039,340) $ (1,510,291) ------------ ------------ ------------ ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 48,573,785 $ 44,709,309 $ 35,585,062 $ 30,055,703 $ 29,184,289 ------------ ------------ ------------ ------------ ------------ June 28, August 2, August 30, September 27, 2003 2003 2003 2003 ------------ ------------ ------------ ------------ LIABILITIES POST PETITION LIABILITIES $ 1,115,613 $ 1,237,138 $ 1,444,903 $ 1,482,928 ------------ ------------ ------------ ------------ PRE PETITION LIABILITIES Priority Debt 2,068,489 2,108,489 1,745,606 1,745,606 ------------ ------------ ------------ ------------ Secured Debt 19,032,152 17,593,708 17,576,471 17,634,539 ------------ ------------ ------------ ------------ Unsecured Debt 8,133,037 7,922,222 7,922,222 7,922,222 ------------ ------------ ------------ ------------ TOTAL PRE PETITION LIABILITIES $ 29,233,678 $ 27,624,419 $ 27,244,299 $ 27,302,367 ------------ ------------ ------------ ------------ TOTAL LIABILITIES $ 30,349,291 $ 28,861,557 $ 28,689,202 $ 28,785,295 ------------ ------------ ------------ ------------ SHAREHOLDERS' EQUITY (DEFICIT) PREFERRED STOCK ------------ ------------ ------------ ------------ COMMON STOCK 50,516 50,516 50,516 50,516 ------------ ------------ ------------ ------------ PAID-IN CAPITAL 15,817,342 15,817,342 15,817,342 15,817,342 ------------ ------------ ------------ ------------ TREASURY STOCK (4,309,397) (4,309,397) (4,309,397) (4,309,397) ------------ ------------ ------------ ------------ RETAINED EARNINGS ------------ ------------ ------------ ------------ Through filing date (5,776,790) (5,776,790) (5,776,790) (5,776,790) ------------ ------------ ------------ ------------ Post filing date (7,880,167) (8,492,427) (9,139,846) (30,135,911) ------------ ------------ ------------ ------------ TOTAL SHAREHOLDERS' EQUITY $ (2,098,496) $ (2,710,756) $ (3,358,175) $(24,354,240) ------------ ------------ ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 28,250,795 $ 26,150,801 $ 25,331,027 $ 4,431,055 ------------ ------------ ------------ ------------
CASE NAME: Ashland Steel Liquidating Company SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR - 3 fka Kentucky Electric Steel, Inc. REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: SEPTEMBER
(1) (1) (1) (1) TOTAL CURRENT 1 - 30 DAYS 31 - 60 DAYS OVER 60 DAYS PAST DUE PAST DUE PAST DUE DATE OF FILING: FEBRUARY 5, 2003 $ 10,089,029 $ 7,974,031 $ 1,611,266 $ 479,232 $ 24,500 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (355,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 9,734,029 ============ MONTH: FEBRUARY - (March 1) $ 8,848,039 $ 6,254,947 $ 2,046,099 $ 435,313 $ 111,680 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (370,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 8,478,039 ============ MONTH: MARCH - (March 29) $ 6,357,687 $ 2,637,537 $ 2,788,675 $ 684,222 $ 247,253 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (385,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 5,972,687 ============ MONTH: April - (May 3) $ 3,227,297 $ 758,907 $ 1,156,614 $ 637,812 $ 673,964 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (385,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 2,842,297 ============ MONTH: May - (May 31) $ 2,464,555 $ 215,802 $ 98,441 $ 1,176,753 $ 973,560 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (315,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 2,149,555 ============ MONTH: June - (June 28) $ 2,011,505 $ 22,750 $ - $ 72,901 $ 1,915,853 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (145,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 1,866,505 ============ MONTH: July - (August 2) $ 214,979 $ - $ - $ - $ 214,979 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (45,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 169,979 ============ MONTH: August - (August 30) $ 113,728 $ - $ - $ - $ 113,728 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (40,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 73,728 ============ MONTH: September - (Sept. 27) $ 93,513 $ - $ - $ - $ 93,513 --------------------- ------------ ------------ ------------ ------------ ------------ Allowance for doubtful accounts $ (35,000) ------------ ------------ ------------ ------------ ------------ Net accounts receivable $ 58,513 ============
NOTE: Total accounts receivable net of allowance for doubtful accounts shown here must agree to Form OPR - 1. (1) The Company sells to customers on various terms including 30 days, 45 days and 60 days. The aging reports are prepared showing current, 1 - 30 days past due, 31 - 60 days past due and over 60 days past due. CASE NAME: Ashland Steel Liquidating Company SUMMARY OF POST PETITION LIABILITIES FORM OPR - 4 fka Kentucky Electric Steel, Inc. REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: SEPTEMBER
DATE DATE TOTAL AMOUNT 0 - 30 31 - 60 61 - 90 OVER INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS TAXES PAYABLE Federal Income Tax ---------- ---------- ---------- ---------- ---------- ---------- ---------- FICA - Employer's Share ---------- ---------- ---------- ---------- ---------- ---------- ---------- FICA - Employee's Share ---------- ---------- ---------- ---------- ---------- ---------- ---------- Unemployment Tax ---------- ---------- ---------- ---------- ---------- ---------- ---------- Sales Tax ---------- ---------- ---------- ---------- ---------- ---------- ---------- Property Tax ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL TAXES PAYABLE $ 162,500 $ 162,500 $ - $ - $ - ---------- ---------- ---------- ---------- ---------- ---------- ---------- POSTPETITION SECURED DEBT See attached Exhibit B ---------- ---------- ---------- ---------- ---------- ---------- ---------- POSTPETITION UNSECURED DEBT ---------- ---------- ---------- ---------- ---------- ---------- ---------- ACCRUED INTEREST PAYABLE ---------- ---------- ---------- ---------- ---------- ---------- ---------- TRADE ACCOUNTS PAYABLE & OTHER: (list separately) Total Trade & Other Accounts Payable $1,320,428 $ 538,264 $ 109,466 $ 109,466 $ 563,232 - -------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- See attached Exhibit C - -------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- - -------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- - -------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- - -------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- - -------------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTALS $1,482,928 $ 700,764 $ 109,466 $ 109,466 $ 563,232 ---------- ---------- ---------- ---------- ---------- ---------- ----------
Attach separate page if necessary. Note: Total postpetition liabilities shown here must agree with the same item as shown on Form OPR-2. ASHLAND STEEL LIQUIDATING COMPANY EXHIBIT B FKA KENTUCKY ELECTRIC STEEL, INC. SUMMARY OF POST PETITION LIABILITIES - TAXES PAYABLE SEPTEMBER 27, 2003
DATE DATE TOTAL 0-30 31-60 61-90 OVER INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS -------- -------- -------- -------- ------- ------- ------- TAXES PAYABLE Property Tax 2003 Prop. Tax Accrual (7 months) 02/05/03 12/31/03 140,000 140,000 - - - Kentucky license Tax (7 months) 02/05/03 Various 15,000 15,000 - - - Deleware Franchise Tax (7 months) 02/05/03 Various 7,500 7,500 - - - -------- -------- ---------------------- TOTAL TAXES PAYABLE $162,500 $162,500 $ - $ - $ - ======== ======== ====================== POSTPETITION SECURED DEBT - - - - - POSTPETITION UNSECURED DEBT - - - - - ACCRUED INTEREST PAYABLE - - - - -
ASHLAND STEEL LIQUIDATING COMPANY EXHIBIT C FKA KENTUCKY ELECTRIC STEEL, INC. SUMMARY OF POST PETITION LIABILITIES - TRADE ACCOUNTS PAYABLES AND OTHERS SEPTEMBER 27, 2003
DATE DATE TOTAL 0-30 31-60 61-90 OVER Accounts Payable INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS - ---------------- ------------ -------------- ----------- --------- -------- --------- --------- Trade Accounts Payable Cannonsburg Water District 09/02/03 10/24/03 188 188 - - - Ceridian 09/27/03 10/10/03 94 94 - - - Custom Data Systems 09/27/03 10/15/03 60 60 - - - Bowne 09/26/03 10/06/03 601 601 - - - Core Risk Services 09/27/03 10/26/03 3,857 3,857 - - - Earle M Jorgensen Co. 03/21/03 TBD 6,576 6,576 - - - Ryerson Tull Various TBD 4,170 4,170 - - - CSX 04/04/03 04/19/03 25,000 - - - 25,000 ----------- --------- -------- --------- --------- TRADE ACCOUNTS PAYABLE $ 40,546 $ 15,546 $ - $ - $ 25,000 ----------- --------- -------- --------- --------- Other Accrued Professional Fees Various TBD $ 517,735 $ 517,735 $ - $ - $ - Accrued Payrolls 09/27/03 09/30/03 4,983 4,983 - - - Accrued sales leaseback transaction Various TBD 757,165 - 109,466 109,466 538,232 ----------- --------- -------- --------- --------- OTHER ACCOUNTS PAYABLE $ 1,279,882 $ 522,718 $109,466 $ 109,466 $ 538,232 ----------- --------- -------- --------- --------- ----------- --------- -------- --------- --------- TOTAL ACCOUNTS PAYABLE $ 1,320,428 $ 538,264 $109,466 $ 109,466 $ 563,232 ----------- --------- -------- --------- ---------
CASE NAME: Ashland Steel Liquidating Company STATEMENT OF INCOME (LOSS) FORM OPR - 5 fka Kentucky Electric Steel, Inc. REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: SEPTEMBER
FEBRUARY MARCH APRIL MAY JUNE ------------ ------------ ------------ ------------ ------------ NET REVENUE (INCOME) $ 2,600,739 $ 2,370,145 $ 1,782,455 $ 65,869 $ 32,531 ------------ ------------ ------------ ------------ ------------ COST OF GOODS SOLD Materials - - - - - ------------ ------------ ------------ ------------ ------------ Labor - Direct - - - - - ------------ ------------ ------------ ------------ ------------ Manufacturing Overhead - - - - - ------------ ------------ ------------ ------------ ------------ TOTAL COST OF GOODS SOLD (3,089,476) (6,532,328) (2,521,368) (310,114) (315,408) ------------ ------------ ------------ ------------ ------------ GROSS PROFIT - - - - - ------------ ------------ ------------ ------------ ------------ OPERATING EXPENSES - - - - - ------------ ------------ ------------ ------------ ------------ Selling and Marketing - - - - - ------------ ------------ ------------ ------------ ------------ General and Administrative (370,304) (393,192) (600,050) (226,351) (208,446) ------------ ------------ ------------ ------------ ------------ Other: - - - - - ------------ ------------ ------------ ------------ ------------ TOTAL OPERATING EXPENSES $ (370,304) $ (393,192) $ (600,050) $ (226,351) $ (208,446) INCOME BEFORE INTEREST, DEPRECIATION TAXES OR EXTRAORDINARY EXPENSES $ (859,041) $ (4,555,375) $ (1,338,963) $ (470,596) $ (491,323) ------------ ------------ ------------ ------------ ------------ INTEREST EXPENSE (2,060) (2,403) (2,987) (2,403) (2,403) ------------ ------------ ------------ ------------ ------------ MISCELLANEOUS - - 2 2,048 (94,479) ------------ ------------ ------------ ------------ ------------ DEPRECIATION - - - - - ------------ ------------ ------------ ------------ ------------ INCOME TAX EXPENSE (BENEFIT) - - - - - ------------ ------------ ------------ ------------ ------------ LOSS ON SALE OF PLANT - - - - - ------------ ------------ ------------ ------------ ------------ WRITE-OFF OF DEFERRED FINANCING FEE (545,404) - - - - ------------ ------------ ------------ ------------ ------------ WRITE-OFF OF OTHER DEFERRED CHARGES (52,749) - - - - ------------ ------------ ------------ ------------ ------------ EXTRAORDINARY INCOME (EXPENSE)(1) - 537,969 - - - ------------ ------------ ------------ ------------ ------------ NET INCOME (LOSS) $ (1,459,254) $ (4,019,809) $ (1,341,948) $ (470,951) $ (588,205) ============ ============ ============ ============ ============ FILING JULY AUGUST SEPTEMBER TO DATE ------------ ------------ ------------ ------------ NET REVENUE (INCOME) $ - $ - $ - $ 6,851,739 ------------ ------------ ------------ ------------ COST OF GOODS SOLD Materials - - - - ------------ ------------ ------------ ------------ Labor - Direct - - - - ------------ ------------ ------------ ------------ Manufacturing Overhead - - - - ------------ ------------ ------------ ------------ TOTAL COST OF GOODS SOLD (389,439) (395,627) - (13,553,760) ------------ ------------ ------------ ------------ GROSS PROFIT - - - - ------------ ------------ ------------ ------------ OPERATING EXPENSES - - - - ------------ ------------ ------------ ------------ Selling and Marketing - - - - ------------ ------------ ------------ ------------ General and Administrative (224,470) (248,071) (88,482) (2,359,366) ------------ ------------ ------------ ------------ Other: - - - - ------------ ------------ ------------ ------------ TOTAL OPERATING EXPENSES $ (224,470) $ (248,071) $ (88,482) $ (2,359,366) INCOME BEFORE INTEREST, DEPRECIATION TAXES OR EXTRAORDINARY EXPENSES $ (613,909) $ (643,698) $ (88,482) $ (9,061,387) ------------ ------------ ------------ ------------ INTEREST EXPENSE (3,004) (4,807) - (20,067) ------------ ------------ ------------ ------------ MISCELLANEOUS 4,653 1,086 594 (86,096) ------------ ------------ ------------ ------------ DEPRECIATION - - - - ------------ ------------ ------------ ------------ INCOME TAX EXPENSE (BENEFIT) - - - - ------------ ------------ ------------ ------------ LOSS ON SALE OF PLANT - - (20,908,177) (20,908,177) ------------ ------------ ------------ ------------ WRITE-OFF OF DEFERRED FINANCING FEE - - - (545,404) ------------ ------------ ------------ ------------ WRITE-OFF OF OTHER DEFERRED CHARGES - - - (52,749) ------------ ------------ ------------ ------------ EXTRAORDINARY INCOME (EXPENSE) (1) - - - 537,969 ------------ ------------ ------------ ------------ NET INCOME (LOSS) $ (612,260) $ (647,419) $(20,996,065) $(30,135,911) ============ ============ ============ ============
(1) Amount is a non-cash item representing the write-off of unrecognized gain on sale and leaseback transaction. CASE NAME: Ashland Steel Liquidating Company STATEMENT OF SOURCES AND USES OF CASH FORM OPR - 6 fka Kentucky Electric Steel, Inc. REV 2/90 CASE NUMBER: 03-10078 MONTH ENDED: SEPTEMBER
FEBRUARY MARCH APRIL MAY JUNE SOURCES OF CASH Income (Loss) From Operations $ (1,459,254) $ (4,019,809) $ (1,341,948) $ (470,951) $ (588,205) ------------ ------------ ------------ ------------ ------------ Add: Depreciation, Amortization & Other Non-Cash Items 558,815 (537,969) - - - ------------ ------------ ------------ ------------ ------------ Proceeds From Sale of Plant - - - - - ------------ ------------ ------------ ------------ ------------ CASH GENERATED FROM OPERATIONS (900,439) (4,557,778) (1,341,948) (470,951) (588,205) ------------ ------------ ------------ ------------ ------------ Add: Decrease in Assets: ------------ ------------ ------------ ------------ ------------ Accounts Receivable 1,259,490 2,505,711 3,140,372 694,185 283,050 ------------ ------------ ------------ ------------ ------------ Inventory 2,531,542 5,352,934 2,462,067 - - ------------ ------------ ------------ ------------ ------------ Prepaid Expenses & Deposits 350,110 581,381 69,875 218,699 272,896 ------------ ------------ ------------ ------------ ------------ Property, Plant & Equipment - - - - 97,859 ------------ ------------ ------------ ------------ ------------ Other: Change in Other Long-Tem Assets 3,726 43,461 - - - ------------ ------------ ------------ ------------ ------------ Increase in Liabilities: ------------ ------------ ------------ ------------ ------------ Pre Petition Liabilities - - - - - ------------ ------------ ------------ ------------ ------------ Post Petition Liabilities 497,818 244,841 164,274 191,913 - ------------ ------------ ------------ ------------ ------------ TOTAL SOURCES OF CASH (A) $ 3,742,247 $ 4,170,550 $ 4,494,641 $ 633,846 $ 65,600 ------------ ------------ ------------ ------------ ------------ USES OF CASH Increase in Assets: Accounts Receivable $ - $ - $ - $ - $ - ------------ ------------ ------------ ------------ ------------ Inventory - - - - - ------------ ------------ ------------ ------------ ------------ Prepaid Expenses & Deposits - - - - - ------------ ------------ ------------ ------------ ------------ Property, Plant & Equipment - - - - - ------------ ------------ ------------ ------------ ------------ Other accured expenses - - - - - ------------ ------------ ------------ ------------ ------------ Decrease in Liabilities: ------------ ------------ ------------ ------------ ------------ Pre Petition Liabilities $ 2,903,040 $ 4,811,310 $ 4,351,685 $ 592,376 $ 157,310 ------------ ------------ ------------ ------------ ------------ Post Petition Liabilities - - - - 187,979 ------------ ------------ ------------ ------------ ------------ TOTAL USES OF CASH (B) $ 2,903,040 $ 4,811,310 $ 4,351,685 $ 592,376 $ 345,289 ------------ ------------ ------------ ------------ ------------ NET SOURCE (USE) OF CASH (A-B=NET) $ 839,207 $ (640,760) $ 142,956 $ 41,470 $ (279,689) ------------ ------------ ------------ ------------ ------------ CASH - BEGINNING BALANCE (See OPR-1) $ 1,092,575 $ 1,931,782 $ 1,291,022 $ 1,433,979 $ 1,475,449 ------------ ------------ ------------ ------------ ------------ CASH - ENDING BALANCE (See OPR-1) $ 1,931,782 $ 1,291,022 $ 1,433,979 $ 1,475,449 $ 1,195,760 ============ ============ ============ ============ ============ FILING JULY AUGUST SEPTEMBER TO DATE SOURCES OF CASH Income (Loss) From Operations $ (612,260) $ (647,419) $(20,996,065) $(30,135,911) ------------ ------------ ------------ ------------ Add: Depreciation, Amortization & Other Non-Cash Items - - 20,908,177(1) 20,929,023 ------------ ------------ ------------ ------------ Proceeds From Sale of Plant - - 2,650,000 2,650,000 ------------ ------------ ------------ ------------ CASH GENERATED FROM OPERATIONS (612,260) (647,419) 2,562,112 (6,556,888) ------------ ------------ ------------ ------------ Add: Decrease in Assets: Accounts Receivable 1,692,625 111,234 13,854 9,700,521 ------------ ------------ ------------ ------------ Inventory - - - 10,346,543 ------------ ------------ ------------ ------------ Prepaid Expenses & Deposits 275,070 484,567 57,550 2,310,148 ------------ ------------ ------------ ------------ Property, Plant & Equipment - - - 97,859 ------------ ------------ ------------ ------------ Other: Change in Other Long-Tem Assets - - - 47,187 ------------ ------------ ------------ ------------ Increase in Liabilities: Pre Petition Liabilities - - 58,069 58,069 ------------ ------------ ------------ ------------ Post Petition Liabilities 121,525 207,765 38,025 1,466,161 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ TOTAL SOURCES OF CASH (A) $ 1,476,960 $ 156,147 $ 2,729,610 $ 17,469,601 ------------ ------------ ------------ ------------ USES OF CASH Increase in Assets: Accounts Receivable $ - $ - $ - $ - ------------ ------------ ------------ ------------ Inventory - - - - ------------ ------------ ------------ ------------ Prepaid Expenses & Deposits - - - - ------------ ------------ ------------ ------------ Property, Plant & Equipment - - - - ------------ ------------ ------------ ------------ Other accured expenses - - - - ------------ ------------ ------------ ------------ Decrease in Liabilities: ------------ ------------ ------------ ------------ Pre Petition Liabilities $ 1,609,259 $ 380,120 $ - $ 14,805,100 ------------ ------------ ------------ ------------ Post Petition Liabilities - - - 187,979 ------------ ------------ ------------ ------------ TOTAL USES OF CASH (B) $ 1,609,259 $ 380,120 $ - $ 14,993,079 ------------ ------------ ------------ ------------ NET SOURCE (USE) OF CASH (A-B=NET) $ (132,299) $ (223,973) $ 2,729,610 $ 2,476,523 ------------ ------------ ------------ ------------ CASH - BEGINNING BALANCE (See OPR-1) $ 1,195,760 $ 1,063,461 $ 839,488 $ 1,092,575 ------------ ------------ ------------ ------------ CASH - ENDING BALANCE (See OPR-1) $ 1,063,461 $ 839,488 $ 3,569,098 $ 3,569,098 ============ ============ ============ ============
(1) Represents loss from sale of substantially all of the assets of the Company including property, plant and equipment and operating supplies, rolls, molds, etc. CASE NAME: Ashland Steel Liquidating Company fka Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 CASH DISBURSEMENT DETAIL ------------------------
Date Payee Amount ------------ --------------------------------------------------- ------- Account #70936836 & 98239 - ------------------------- 9/11/2003 Alltel $ 1,455 9/11/2003 Alltel 103 9/11/2003 Ashland Office Supply 817 9/11/2003 AT&T 2,732 9/11/2003 Browning Ferris Ind 222 9/11/2003 Cannonsburg Water District 188 9/11/2003 Ceridian Employer Services 128 9/11/2003 Core Risk Services 674 9/11/2003 Ikon Office Solutions 728 9/11/2003 William J. Jessie 85 9/11/2003 American Electric Power 38 9/11/2003 Manpower 161 9/11/2003 Lightyear Communications 739 9/11/2003 The Reserves Network 798 9/11/2003 The Wackenhut Corporation 2,315 9/23/2003 Ashland Office Supply 161 9/23/2003 BHE Environmental Inc 76 9/23/2003 Business Wire 637 9/23/2003 AT&T Wireless Service 562 9/23/2003 Columbia Gas Of Kentucky 69 9/23/2003 Ceridian Employer Services 107 9/23/2003 The Depository Trust Company 110 9/23/2003 Manpower 274 9/23/2003 Metlife 12 9/23/2003 Professional Maintenance 268 9/23/2003 The Wackenhut Corporation 302 9/24/2003 Bank Analysis Charges 581 9/26/2003 AT&T 19 9/26/2003 Xerox Corp 76 Various FedEx 121 ------- $14,556 ------- Account 626225676 & 626225668 - ----------------------------- 9/11/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 $ 174 9/11/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 1,471 9/11/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 174 9/11/2003 Transfer KIT Withholding 395 9/15/2003 Bank Service Charge - August 31 9/24/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 174 9/24/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 1,471 9/24/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 174 9/24/2003 Transfer KIT Withholding 395 ------- $ 4,457 ------- Account # 39353008 - ------------------ 9/2/2003 Mark Grimm $ 34 9/5/2003 Salary Payroll 3,400 9/15/2003 Salary Payroll 4,971 9/24/2003 KES Acquisition Company, LLC 750 ------- $ 9,155 ------- Account #4090-K001-00-7 - ----------------------- 9/27/2003 Annual Fee 750 ------- ------- TOTAL $28,918 =======
CASE NAME: Ashland Steel Liquidating Company fka Kentucky Electric Steel, Inc. CASE NUMBER: 03-10078 CASH RECEIPTS DETAIL --------------------
Date Payee Amount ------------ ----------------------------------------------- ---------- Account #754119200 - ------------------ 9/3/2003 KES Acquisition Company, LLC $2,650,000 9/11/2003 Suspensiones DSP, SA DE CV 1,952 9/11/2003 Suspensiones DSP, SA DE CV 3,880 9/11/2003 Suspensiones DSP, SA DE CV 2,169 9/11/2003 Williams Steel & Hardware Co. 3,000 9/15/2003 Williams Steel & Hardware Co. 1,500 9/23/2003 Aztec Trailer Sales 1,569 9/23/2003 Aztec Trailer Sales 1,569 9/23/2003 American Electric Power 33,929 9/23/2003 American Electric Power 658 9/23/2003 American Electric Power 3 ---------- $2,700,228 ---------- Account #4090-K001-00-7 - ----------------------- 9/27/2003 Interest Income 231 ---------- ---------- TOTAL $2,700,459 ==========
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