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EX.99.113
OFFICE OF THE UNITED STATES TRUSTEE
IN RE: | DEBTOR IN POSSESSION OPERATING REPORT | ||||||||
SUPERIOR NATIONAL INSURANCE GROUP | REPORT NUMBER 17 | Page 1 of 3 | |||||||
FOR THE PERIOD FROM: 01-Aug-01 | |||||||||
DEBTOR | TO: 31-Aug-01 | ||||||||
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. 17
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 Payments Not Made | ||||||
---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Payments per Lease/Contract | Amount of Each Payment | Next Payment Due | |||||||
Creditor/Lessor | Number | Amount | ||||||||
NONE |
4. Tax Liability:
Gross Payroll Expense For Period | $ | 72,191 | |
Gross Sales for Period Subject to Sales Tax | $ | 0 |
| Date Paid | Amount Paid* | Post Petition Taxes Still Owing | ||||
---|---|---|---|---|---|---|---|
Federal Payroll and Withholding Taxes | 8/15/01 & 8/31/01 | $ | 21,303 | 0 | |||
State Payroll and Withholding Taxes | 8/15/01 & 8/31/01 | $ | 3,962 | 0 | |||
State Sales and Use Tax | N/A | $ | 0 | N/A | |||
Real Property Taxes | N/A | $ | 0 | N/A |
- •
- Attach photocopies of depository receipts from taxing authority or financial institution to verify that such deposits or payments have been made.
ALL PAYROLL TAXES PAID BY ADP
5. Insurance Coverage
| Carrier/ Agent | Amount of Coverage | Policy Exp. Date | Premium Paid 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. 17
Page 3 of 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):
Name of Professional | Type Professional | Post-Petition Unpaid Total | ||
---|---|---|---|---|
See Schedule F |
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 Period Ending | Quarterly Disbursements for Quarter | Quarterly Fee | Date Paid | Amount Paid | Check No. | Quarterly Fee Still Owing |
---|
I, Alex Corbett — Chief Financial Officer, 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: 10/02/2001 | Signed: | /s/ ALEX CORBETT | ||
SCHEDULE A
SNIG, BIG, SNIA and SNIS
Schedule of Operations
One Month ended August 31, 2001
[Bankruptcy filed April 26, 2000]
[unaudited]
(in thousands) | | | | | | | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | Consolidated Total | |||||||||||||||
SNIG | BIG | SNIA | SNIS | Elimination | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Commission income | $ | — | $ | — | $ | — | $ | (56 | ) | $ | — | $ | (56 | ) | ||||||
Net investment income | 6 | 3 | 1 | 39 | — | 49 | ||||||||||||||
Total Revenues | 6 | 3 | 1 | (17 | ) | — | (7 | ) | ||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 828 | — | — | — | — | 828 | ||||||||||||||
Bad debt expense | — | — | — | (A) | (57 | )(A) | — | (57 | ) | |||||||||||
General and administrative | ||||||||||||||||||||
Other | 27 | 1 | 85 | 486 | — | 599 | ||||||||||||||
Total Expenses | 855 | 1 | 85 | 429 | — | 1,370 | ||||||||||||||
Income (loss) before income taxes and preferred securities dividends and accretion | (849 | ) | 2 | (84 | ) | (446 | ) | — | (1,377 | ) | ||||||||||
Income tax (benefit) expense | — | — | — | — | — | — | ||||||||||||||
Income (loss) before preferred securities dividends and accretion | (849 | ) | 2 | (84 | ) | (446 | ) | — | (1,377 | ) | ||||||||||
Preferred securities dividends and accretion | (1,143 | ) | — | — | — | — | (1,143 | ) | ||||||||||||
Expenses not related to business operations: | ||||||||||||||||||||
Legal and Professional Fees | 26 | — | — | — | — | 26 | ||||||||||||||
Other non-operating expenses | — | — | — | — | — | — | ||||||||||||||
(1,966 | ) | 2 | (84 | ) | (446 | ) | — | (2,494 | ) | |||||||||||
Equity in net income (loss) from subsidiaries | (524 | ) | (526 | ) | — | — | 1,054 | 4 | ||||||||||||
Net (Loss) Income | $ | (2,490 | ) | $ | (524 | ) | $ | (84 | ) | $ | (446 | ) | $ | 1,054 | $ | (2,490 | ) | |||
- (A)
- Amount reflects a recording of an allowance for bad debt on collection of commissions receivable. Debtor continues to assert rights of offset and other methods to effectuate collection.
SCHEDULE B
Superior National Insurance Group, Inc. in Bankruptcy
Aging of Accounts Payable and Receivable
As of August 31, 2001
Superior National Insurance Group | |||||||||||||
Non-Intercompany Accounts | Intercompany Accounts | ||||||||||||
Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | ||||||||||
Current Under 30 days | 449,247 | — | — | 193,306 | |||||||||
Overdue 31 - 60 days | 524,224 | — | — | 699,561 | |||||||||
Overdue 61 - 90 days | 71,854 | — | — | 69,804 | |||||||||
Overdue 91 - 120 days | — | — | — | 83,088 | |||||||||
Overdue 121 + days | 1,126,243 | 144,553 | 5,237,080 | 1,308,790 | [D] | ||||||||
Total | $ | 2,171,568 | $ | 144,553 | [A] | $ | 5,237,080 | $ | 2,354,550 | ||||
Business Insurance Group | |||||||||||||
Non-Intercompany Accounts | Intercompany Accounts | ||||||||||||
Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | ||||||||||
Current Under 30 days | — | — | — | — | |||||||||
Overdue 31 - 60 days | — | — | — | — | |||||||||
Overdue 61 - 90 days | — | — | — | — | |||||||||
Overdue 91 - 120 days | — | — | — | — | |||||||||
Overdue 121 + days | — | 601,265 | 22,000 | 20,200,934 | [D] | ||||||||
Total | $ | — | $ | 601,265 | $ | 22,000 | $ | 20,200,934 | |||||
Superior National Insurance Services | |||||||||||||
Non-Intercompany Accounts | Intercompany Accounts | ||||||||||||
Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | ||||||||||
Current Under 30 days | 219,379 | (0 | ) | 156,746 | 885 | ||||||||
Overdue 31 - 60 days | — | 0 | 566,733 | 2,811 | |||||||||
Overdue 61 - 90 days | (0 | ) | 0 | 0 | 885 | ||||||||
Overdue 91 - 120 days | (0 | ) | 203,903 | (0 | ) | 885 | |||||||
Overdue 121 + days | 36,455 | 11,163,399 | (0 | ) | 737,487 | ||||||||
Total | $ | 255,834 | $ | 11,367,301 | [B] | $ | 723,479 | $ | 742,955 | ||||
Superior National Insurance Administrators | |||||||||||||
Non-Intercompany Accounts | Intercompany Accounts | ||||||||||||
Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | ||||||||||
Current Under 30 days | 83,185 | — | 37,446 | — | |||||||||
Overdue 31 - 60 days | — | — | 135,639 | — | |||||||||
Overdue 61 - 90 days | — | — | 70,690 | — | |||||||||
Overdue 91 - 120 days | (0 | ) | — | 83,974 | — | ||||||||
Overdue 121 + days | — | 6,296,111 | 1,696,214 | 98,383 | |||||||||
Total | $ | 83,185 | $ | 6,296,111 | [C] | $ | 2,023,963 | $ | 98,383 | ||||
Consolidated | |||||||||||||
Non-Intercompany Accounts | Intercompany Accounts | ||||||||||||
Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | ||||||||||
Current Under 30 days | 751,811 | (0 | ) | 194,192 | 194,192 | ||||||||
Overdue 31 - 60 days | 524,224 | 0 | 702,373 | 702,373 | |||||||||
Overdue 61 - 90 days | 71,854 | 0 | 70,690 | 70,690 | |||||||||
Overdue 91 - 120 days | (0 | ) | 203,903 | 83,974 | 83,974 | ||||||||
Overdue 121 + days | 1,162,698 | 18,205,328 | 6,955,294 | 22,345,594 | |||||||||
Total | $ | 2,510,586 | $ | 18,409,231 | $ | 8,006,523 | $ | 23,396,823 | |||||
- [A]
- Amounts in accounts payable do not include interest due and accrued on bank loan and Trust Preferred Securities.
- [B]
- Amounts shown in accounts receivable do not include recorded amounts on allowance for bad debt on collection of commissions receivable, in which the Debtor continues to assert rights of offset and other methods to effectuate collection.
- [C]
- Amounts shown in accounts receivable do not include recorded amounts on allowance for bad debt on collection of claims administration fee, in which the Debtor continues to assert rights of offset and other methods to effectuate collection.
- [D]
- Amounts include a payment of $5.4 million pursuant to an Order Authorizing Release of Escrowed Funds to the Bank Group Pursuant to Stipulation dated November 9, 2000. The $5.4 million was paid from BIG for interest expense accrued on SNIG.
SCHEDULE C
AUGUST 31, 2001
SNIG
3. Statement of Status of Payments to Secured Creditors and Lessors:
| | | | Post-Petition Payments Not Made | ||||||
---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Payments per Lease/Contract | Amount of Each Payment | | |||||||
Creditor/Lessor | Next Payment Due | Number | Amount | |||||||
NONE |
Amounts above do not include bank loan in default, which are partially secured by stock of Superior National Insurance Group, Inc. and its subsidiaries.
BIG
3. Statement of Status of Payments to Secured Creditors and Lessors:
| | | | Post-Petition Payments Not Made | ||||||
---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Payments per Lease/Contract | Amount of Each Payment | | |||||||
Creditor/Lessor | Next Payment Due | Number | Amount | |||||||
NONE |
Amounts above do not include bank loan in default, which are partially secured by stock of Superior National Insurance Group, Inc. and its subsidiaries.
SNIA
3. Statement of Status of Payments to Secured Creditors and Lessors:
| | | | Post-Petition Payments Not Made | ||||||
---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Payments per Lease/Contract | Amount of Each Payment | | |||||||
Creditor/Lessor | Next Payment Due | Number | Amount | |||||||
NONE |
Amounts above do not include bank loan in default, which are partially secured by stock of Superior National Insurance Group, Inc. and its subsidiaries.
SNIS
3. Statement of Status of Payments to Secured Creditors and Lessors:
| | | | Post-Petition Payments Not Made | ||||||
---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Payments per Lease/Contract | Amount of Each Payment | | |||||||
Creditor/Lessor | Next Payment Due | Number | Amount | |||||||
NONE |
Amounts above do not include bank loan in default, which are partially secured by stock of Superior National Insurance Group, Inc. and its subsidiaries.
SCHEDULE D
Superior National Insurance Group, Inc. in Bankruptcy
Debtor in Possession
Insurance Coverage
As of August 31, 2001
State | Carrier | Agent | Amount of Coverage | Policy Exp. Date | Premium Paid Thru Date | |||||
---|---|---|---|---|---|---|---|---|---|---|
Arizona | Liberty Mutual Group | Di Buduo & De Fendis | Statutory | 12-Jul-02 | 12-Jul-02 | |||||
California | State Compensation Insurance Fund | Hogan Insurance | Statutory | 01-Jun-02 | 01-Aug-01 | |||||
Colorado | Pinnacol Assurance | Di Buduo & De Fendis | Statutory | 01-Jun-02 | 01-Jun-02 | |||||
Illinois | Liberty Mutual Group | Di Buduo & De Fendis | Statutory | 12-Jul-02 | 12-Jul-02 | |||||
Kansas | Liberty Mutual Group | Di Buduo & De Fendis | Statutory | 11-Aug-02 | 11-Aug-02 | |||||
Missouri | Travelers Property & Casualty | Di Buduo & De Fendis | Statutory | 02-Jun-02 | 02-Jun-02 | |||||
New Jersey | Granite State Insurance Company | Di Buduo & De Fendis | Statutory | 02-Jun-02 | 02-Jun-02 | |||||
New York | The State Insurance Fund (N.Y.) | Hogan Insurance | Statutory | 01-Jun-02 | 01-Jun-02 | |||||
Oklahoma | State Insurance Fund | IRAA | Statutory | 15-Nov-01 | 15-Nov-01 | |||||
Pennsylvania | State Workrmens' Insurance Fund | Di Buduo & De Fendis | Statutory | 03-Jun-02 | 03-Jun-02 | |||||
Texas | Texas W/C Insurance Fund | Hogan Insurance | Statutory | 15-Nov-01 | 15-Nov-01 | |||||
Virginia | Liberty Mutual Group | Di Buduo & De Fendis | Statutory | 11-Aug-02 | 11-Aug-02 |
Note 1: The polices for Florida, Indiana,Louisiana, New Mexico, New York, Oregon, Tennessee, Utah, and Wisconsin were all requested to be cancelled in December 2000.
Note 2: Within all of the policies identified above the following entities are covered for Workers' Compensation: SNIG, BIG, SNIA, and SNIS.
Note 3: A Virginia employee was added to the Kansas policy
Note 4: The AZ, ILL policy was renewed and the AR & GA states were removed
Note 5: New York was added back in June.
August 31, 2001 | | | | | Schedule E | |||||
---|---|---|---|---|---|---|---|---|---|---|
Company | Agent | Type of Insurance | Amount of Coverage | Policy Exp. Date | Premium paid thru date | |||||
SNIG, BIG, SNIS, & SNIA | DiBudio & DeFendis | Commercial General Liability Package | ||||||||
General Liability | $1 million per occurrence $2 million aggregate | 11/13/2001 | 11/13/2001 | |||||||
Advertising Injury | excluded | |||||||||
Employee Benefit Liability | $1 million per claim $1 million aggregate | |||||||||
SNIG, BIG, SNIS, & SNIA | DiBudio & DeFendis | Automobile (non-owned) | ||||||||
Liability | $1 million | 11/13/2001 | 11/13/2001 | |||||||
Physical Damage/Comp/Collision | $30,000 $100 deductible comp/ $250 collision | |||||||||
SNIG, BIG, SNIS, & SNIA | Carpenter Moore | Directors & Officers (run-off) | ||||||||
Reliance | $5,000,000 | 05/01/2003 | 05/01/2003 | |||||||
Lloyd's of London | $5,000,000 xs $5,000,000 | |||||||||
Gulf Insurance Company | $10,000,000 xs $10,000,000 | |||||||||
Executive Risk Indeminity | $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 (run off) Extended reporting period | $1 million per loss & in the aggregate | 12/10/2001 | 12/10/2001 | |||||
SNIG, BIG, SNIS, & SNIA | DiBudio & DeFendis | Employer Practice Liability | $1 million per loss & in the aggregate | 01/15/2002 | 01/15/2002 | |||||
SNIG, BIG, SNIS, & SNIA | DiBudio & DeFendis | Fiduciary Liability (run off) | $5 million per loss & in the aggregate | 12/10/2001 | 12/10/2001 | |||||
SNIG, BIG, SNIS, & SNIA | DiBudio & DeFendis | Commercial Umbrella Evanston Insurance Company | $10 million per occurrence $10 million aggregate | 11/01/2001 | 11/01/2001 | |||||
SNIG, BIG, SNIS, & SNIA | DiBudio & DeFendis | Excess Liability | $10 million per occurrence $10 million aggregate | 11/01/2001 | 11/01/2001 | |||||
SNIG, BIG, SNIS, & SNIA | DiBudio & DeFendis | Accident Policy (Life/Travel) AIG | $1 million to $3 million (depends on rank of officer) | 01/15/2002 | 01/15/2002 | |||||
SNIG, BIG, SNIS, & SNIA | Andreini & Co | Accident Policy (Trip/Travel) Hartford | $500,000 $1.5 million aggregate (single accident) | 12/31/2001 | 12/31/2001 | |||||
SNTL Corp & Sub's | Hogan Insurance | Professional Liability—(Binder) Indian Harbor Insurance | $1 million per occurrence $1 million aggregate | 12/08/2001 | 12/08/2001 | |||||
BIG only | DiBudio & DeFendis | Professional Liability Run Off BIG companies only/acts b/f 12-10-99 *$500,000 deductible | $10 million per loss & in the aggregate | 12/10/2004 | 12/10/2004 |
SCHEDULE F
August 31, 2001
SNIG, BIG, SNIS, SNIA
Name of Professional | Type Professional | Post-Petition Unpaid Total | | ||||
---|---|---|---|---|---|---|---|
Paul, Weiss, Rifkind, Wharton & Garrison | Legal fees | $ | 62,635 | Note C & D | |||
Latham & Watkins | Counsel for Official Committee of Unsecured Creditors | $ | 221,271 | Note C | |||
Steve Eldrige | Tax consulting | $ | 14,692 | ||||
Quinn Emanuel Urquhart Oliver & Hedges LLP | Special litigation counsel | $ | 912,222 | Note C | |||
Tharpe & Howell | Legal fees | $ | 1,034 | ||||
Mannat Phelps | Legal fees | $ | 23,618 | Note D | |||
KPMG Peat Marwick | Audit & consulting fees | $ | 196,868 | Note C & D | |||
Christopher Maisel | Facilitator fees | $ | — | Note A | |||
Riordan & McKinzie | Corporate counsel | $ | 139,296 | Note B, C & D | |||
Pachulski, Stang, Ziehl, Young & Jones LLP | General bankruptcy counsel | $ | 374,463 | Note C & E |
Note A—Fees & expenses from 3/1/01 to 7/31/01 are unknown.
Note B—SNIG has a retainer with Riordan & McKinzie. Retainer balance as of 8/31/01 is $762,542.30.
Note C—Amount includes 20% hold back on professional fees sanctioned by the Bankruptcy Court.
Note D—Amount represents fees & expenses through July 31, 2001.
Note E—Amount represents fees & expenses through May 31, 2001.
SNIG, BIG, SNIA and SNIS Schedule of Operations One Month ended August 31, 2001 [Bankruptcy filed April 26, 2000] [unaudited]