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OFFICE OF THE UNITED STATES TRUSTEE | ||||||
IN RE: | ) | DEBTOR IN POSSESSION OPERATING REPORT | ||||
) | ||||||
SNTL CORPORATION | ) | REPORT NUMBER 20 | Page 1 of 3 | |||
(formerly SUPERIOR NATIONAL INSURANCE GROUP) | ) | FOR THE PERIOD FROM: 01-Nov-01 | ||||
DEBTOR | ) | TO: 30-Nov-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. 20 | ||
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 | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Creditor/Lessor | Frequency of Payments per Lease/Contract | Amount of Each Payment | Next Payment Due | |||||||
Number | Amount | |||||||||
NONE |
4. Tax Liability:
Gross Payroll Expense For Period | $ | 81,890 | |
Gross Sales for Period Subject to Sales Tax | $ | 0 |
Date Paid | Amount Paid * | Post Petition Taxes Still Owing | ||||
---|---|---|---|---|---|---|
Federal Payroll and Withholding Taxes | 11/15/01 & 11/30/01 | $22,829 | 0 | |||
State Payroll and Withholding Taxes | 11/15/01 & 11/30/01 | $4,517 | 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/ 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. 20 | ||
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: | 1-10-2002 | Signed: | /s/ Alex Corbett |
Schedule of Operations
One Month ended November 30, 2001
[Bankruptcy Filed April 16, 2000]
[unaudited]
(In thousands) | SNTL (formerly SNIG) | SNTLHC (formerly BIG) | SNIA | SNIS | Elimination | Consolidated Total | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenues: | ||||||||||||||||||||
Commission income | $ | — | $ | — | $ | — | $ | (9 | ) | $ | — | $ | (9 | ) | ||||||
Net investment income | 3 | 2 | 1 | 18 | — | 24 | ||||||||||||||
Total Revenues | 3 | 2 | 1 | 9 | — | 15 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 657 | — | — | — | — | 657 | ||||||||||||||
Bad debt expense | — | — | — | (A) | (26 | )(A) | — | (26 | ) | |||||||||||
General and administrative | ||||||||||||||||||||
Other | (182 | ) | (1 | ) | 127 | 750 | — | 694 | ||||||||||||
Total Expenses | 475 | (1 | ) | 127 | 724 | — | 1,325 | |||||||||||||
Income (loss) before income taxes and preferred securities dividends and accretion | (472 | ) | 3 | (126 | ) | (715 | ) | — | (1,310 | ) | ||||||||||
Income tax (benefit) expense | — | — | — | 3 | (B) | — | 3 | |||||||||||||
Income (loss) before preferred securities dividends and accretion | (472 | ) | 3 | (126 | ) | (718 | ) | — | (1,313 | ) | ||||||||||
Preferred securities dividends and accretion | (1,143 | ) | — | — | — | — | (1,143 | ) | ||||||||||||
Expenses not related to business operations: | ||||||||||||||||||||
Legal and Professional Fees | (76 | ) | — | — | — | — | (76 | ) | ||||||||||||
Other non-operating expenses | (1 | ) | — | — | — | — | (1 | ) | ||||||||||||
(1,692 | ) | 3 | (126 | ) | (718 | ) | — | (2,533 | ) | |||||||||||
Equity in net income (loss) from subsidiaries | (841 | ) | (844 | ) | — | — | 1,685 | — | ||||||||||||
Net (Loss) Income | $ | (2,533 | ) | $ | (841 | ) | $ | (126 | ) | $ | (718 | ) | $ | 1,685 | $ | (2,533 | ) | |||
- (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.
- (B)
- All amount reflect tax expense associated with the payment of taxes to various state tax authorities.
SNTL Corporation and Subsidiaries in Bankruptcy
Aging of Accounts Payable and Receivable
As of November 30, 2001
SNTL Corporation
(formerly Superior National Insurance Group)
| | Non-Intercompany Accounts | Intercompany Accounts | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | ||||||||||
Current | Under 30 days | 633,411 | — | — | 348,039 | ||||||||||
Overdue | 31—60 days | 532,834 | — | — | 711,738 | ||||||||||
Overdue | 61—90 days | 300,000 | — | — | 119,929 | ||||||||||
Overdue | 91—120 days | 10,658 | — | — | 36,560 | ||||||||||
Overdue | 121 + days | 895,404 | 144,553 | 5,161,344 | 1,594,511 | (D) | |||||||||
Total | $ | 2,372,307 | $ | 144,553 | [A] | $ | 5,161,344 | $ | 2,810,778 | ||||||
SNTL Holdings Corporation
(formerly 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 | 20,125,198 | (D) | |||||||||
Total | $ | — | $ | 601,265 | $ | 22,000 | $ | 20,125,198 | |||||||
Superior National Insurance Services
| | Non-Intercompany Accounts | Intercompany Accounts | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | |||||||||
Current | Under 30 days | 260,910 | (0 | ) | 270,726 | 4,738 | ||||||||
Overdue | 31—60 days | — | (0 | ) | 560,909 | 2,811 | ||||||||
Overdue | 61—90 days | (0 | ) | 0 | (0 | ) | 885 | |||||||
Overdue | 91—120 days | (0 | ) | (0 | ) | 0 | 885 | |||||||
Overdue | 121 + days | 36,455 | 21,392,397 | 0 | 742,069 | |||||||||
Total | $ | 297,365 | $ | 21,392,397 | [B] | $ | 831,635 | $ | 751,389 | |||||
Superior National Insurance Administrators
| | Non-Intercompany Accounts | Intercompany Accounts | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | |||||||||
Current | Under 30 days | 94,384 | — | 82,051 | — | |||||||||
Overdue | 31—60 days | — | — | 153,641 | — | |||||||||
Overdue | 61—90 days | — | — | 120,815 | — | |||||||||
Overdue | 91—120 days | (0 | ) | — | 37,446 | — | ||||||||
Overdue | 121 + days | — | 7,175,421 | 1,986,517 | 98,383 | |||||||||
Total | $ | 94,384 | $ | 7,175,421 | [C] | $ | 2,380,469 | $ | 98,383 | |||||
Consolidated
| | Non-Intercompany Accounts | Intercompany Accounts | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Accounts Payable | Accounts Receivable | Accounts Payable | Accounts Receivable | |||||||||
Current | Under 30 days | 988,705 | (0 | ) | 352,776 | 352,776 | ||||||||
Overdue | 31—60 days | 532,834 | (0 | ) | 714,550 | 714,550 | ||||||||
Overdue | 61—90 days | 300,000 | 0 | 120,815 | 120,815 | |||||||||
Overdue | 91—120 days | 10,658 | (0 | ) | 37,446 | 37,446 | ||||||||
Overdue | 121 + days | 931,859 | 29,313,636 | 7,169,862 | 22,560,162 | |||||||||
Total | $ | 2,764,056 | $ | 29,313,636 | $ | 8,395,449 | $ | 23,785,749 | ||||||
- [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. Also, reflects prior period adjustment recorded in September 2001.
- [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. Also, reflects prior period adjustment recorded in September 2001.
- [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
November 30, 2001
SNTL (formerly SNIG)
3. Statement of Status of Payments to Secured Creditors and Lessors:
| | | | Post-Petition Payments Not Made | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Creditor/Lessor | Frequency of Payments per Lease/Contract | Amount of Each Payment | 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.
SNTLHC (formerly BIG)
3. Statement of Status of Payments to Secured Creditors and Lessors:
| | | | Post-Petition Payments Not Made | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Creditor/Lessor | Frequency of Payments per Lease/Contract | Amount of Each Payment | 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 | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Creditor/Lessor | Frequency of Payments per Lease/Contract | Amount of Each Payment | 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 | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Creditor/Lessor | Frequency of Payments per Lease/Contract | Amount of Each Payment | 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.
SNTL Corporation and Subsidiaries in Bankruptcy Debtor in Possession Workers' Compensation Insurance Coverage November 30, 2001 | SCHEDULE D |
State | Carrier | Agent | Amount of Coverage | Policy Exp. Date | Premium Paid Thru Date | |||||
---|---|---|---|---|---|---|---|---|---|---|
Arizona | Liberty Mutual Group | Di Buduo & De Fendis Insurance Group | Statutory | 12-Jul-02 | 12-Jul-02 | |||||
California | State Compensation Insurance Fund | Hogan Insurance | Statutory | 01-Jun-02 | 31-Jan-02 | |||||
Colorado | Pinnacol Assurance | Di Buduo & De Fendis Insurance Group | Statutory | 01-Jun-02 | 01-Jun-02 | |||||
Illinois | Liberty Mutual Group | Di Buduo & De Fendis Insurance Group | Statutory | 12-Jul-02 | 12-Jul-02 | |||||
Kansas | Liberty Mutual Group | Di Buduo & De Fendis Insurance Group | Statutory | 11-Aug-02 | 11-Aug-02 | |||||
Missouri | Travelers Property & Casualty | Di Buduo & De Fendis Insurance Group | Statutory | 02-Jun-02 | 02-Jun-02 | |||||
New Jersey | Granite State Insurance Company | Di Buduo & De Fendis Insurance Group | 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 | First American Insurance Company | IRAA (MGA) | Statutory | 15-Nov-02 | 15-Nov-02 | |||||
Pennsylvania | State Workrmens' Insurance Fund | Di Buduo & De Fendis Insurance Group | Statutory | 03-Jun-02 | 03-Jun-02 | |||||
Texas | Texas Mutual | Hogan Insurance | Statutory | 15-Nov-02 | 15-Nov-02 | |||||
Virginia | Liberty Mutual Group | Di Buduo & De Fendis Insurance Group | Statutory | 11-Aug-02 | 11-Aug-02 |
Note 1: Within all of the policies identified above the following entities are covered for Workers' Comp.: SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIA, and SNIS.
Note 2: A Virginia employee was added to the Kansas policy
Note 3: The AZ, ILL policy was renewed and the AR & GA states were removed
November 30, 2001 | Schedule E |
Company | Agent | Type of Insurance | Amount of Coverage | Policy Exp. Date | Premium paid thru date | |||||
---|---|---|---|---|---|---|---|---|---|---|
SNTL (formerly SNIG), | Hogan Insurance | Commercial General Liability Package BWCP 001385 | ||||||||
SNTLHC (formerly BIG), | General Liability | $1 million per occurrence | 11/1/2002 | 11/1/2002 | ||||||
SNIS, & SNIA | Advertising Injury | $2 million aggregate excluded | ||||||||
Employee Benefit Liability | $1 million per claim $1 million aggregate | |||||||||
SNTL (formerly SNIG), | Hogan Insurance | Automobile (non-owned) RPC 435072 | ||||||||
SNTLHC (formerly BIG), | Liability | $1 million | 11/1/2002 | 11/1/2002 | ||||||
SNIS, & SNIA | Physical Damage/Comp/Collision | $30,000 | ||||||||
$100 deductible comp/ $250 collision | ||||||||||
SNTL (formerly SNIG), | Carpenter Moore | Directors & Officers (run-off) | ||||||||
SNTLHC (formerly BIG), | Hartford | $5,000,000 | 5/1/2003 | 5/1/2003 | ||||||
SNIS, & SNIA | 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 | |||||||||
SNTL (formerly SNIG), | Hogan Insurance | Employment Practice Liability | $1 million per loss | 1/15/2003 | 1/15/2003 | |||||
SNTLHC (formerly BIG), | & in the aggregate | |||||||||
SNIS, & SNIA | ||||||||||
SNTL (formerly SNIG), | Hogan Insurance | Commercial Umbrella — CUBW 793401 | $10 million per occurrence | 11/1/2002 | 11/1/2002 | |||||
SNTLHC (formerly BIG), | Evanston Insurance Company | $10 million aggregate | ||||||||
SNIS, & SNIA | ||||||||||
SNTL (formerly SNIG), | Hogan Insurance | Excess Liability | $10 million per occurrence | 2/20/2002 | 2/20/2002 | |||||
SNTLHC (formerly BIG), | United National Insurance | $10 million aggregate | Binder | |||||||
SNIS, & SNIA | ||||||||||
SNTL (formerly SNIG), | DiBudio & DeFendis | Accident Policy (Life/Travel) | $1 million to $3 million | 1/15/2002 | 1/15/2002 | |||||
SNTLHC (formerly BIG), | AIG | (depends on rank of officer) | ||||||||
SNIS, & SNIA | ||||||||||
SNTL (formerly SNIG), | Andreini & Co | Accident Policy (Trip/Travel) | $500,000 | 12/31/2001 | 12/31/2001 | |||||
SNTLHC (formerly BIG), | Hartford | $1.5 million aggregate | Working on renewal | |||||||
SNIS, & SNIA | (single accident) | |||||||||
SNTL CORP & Sub's | Hogan Insurance | Professional Liability — (Binder) | $1 million per occurrence | 2/8/2002 | 2/8/2002 | |||||
Indian Harbor Insurance | $1 million aggregate | Binder | ||||||||
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
November 30, 2001
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, SNIA
Name of Professional | Type Professional | Post-Petition Unpaid Total | | ||||
---|---|---|---|---|---|---|---|
Paul, Weiss, Rifkind, Wharton & Garrison | Legal fees | $ | 139,114 | Note C | |||
Latham & Watkins | Counsel for Official Committee of Unsecured Creditors | $ | 205,340 | Note C | |||
Steve Eldrige | Tax consulting | $ | 638 | ||||
Quinn Emanuel Urquhart Oliver & Hedges LLP | Special litigation counsel | $ | 979,164 | Note C & D | |||
Tharpe & Howell | Legal fees | $ | 1,251 | ||||
Mannat Phelps | Legal fees | $ | 82,528 | Note C | |||
KPMG Peat Marwick | Audit & consulting fees | $ | 324,119 | Note C | |||
Christopher Maisel | Facilitator fees | $ | — | Note A | |||
Riordan & McKinzie | Corporate counsel | $ | 166,795 | Note B, C & D | |||
Pachulski, Stang, Ziehl, Young & Jones LLP | General bankruptcy counsel | $ | 109,244 | Note C & E | |||
Miller, Herbers, Lehmann & Assoc. | Legal fees | $ | 73,798 | Note C |
Note A — Fees & expenses from 3/1/01 to 11/30/01 are unknown.
Note B — SNIG has a retainer with Riordan & McKinzie. Estimated retainer balance as of 11/30/01 is $691,021.91.
Note C — Amount includes 20% hold back on professional fees sanctioned by the Bankruptcy Court.
Note D — Amount represents fees & expenses through October 31, 2001.
Note E — Amount represents fees & expenses through May 31, 2001.
Schedule of Operations One Month ended November 30, 2001 [Bankruptcy Filed April 16, 2000] [unaudited]