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Exhibit 99.186
OFFICE OF THE UNITED STATES TRUSTEE
IN RE: | ) | DEBTOR IN POSSESSION OPERATING REPORT | ||||||
) | ||||||||
SNTL CORPORATION (formerly SUPERIOR NATIONAL INSURANCE GROUP | ) | REPORT NUMBER 25 Page 1 of 3 | ||||||
) | FOR THE PERIOD FROM: 01-Apr-02 | |||||||
DEBTOR | ) | TO: 30-Apr-02 | ||||||
) |
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. 25
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 | $351,792 | |
Gross Sales for Period Subject to Sales Tax | $0 |
| Date Paid | Amount Paid* | Post Petition Taxes Still Owing | |||
---|---|---|---|---|---|---|
Federal Payroll and Withholding Taxes | 4/15/02 & 4/30/02 | $113,089 | 0 | |||
State Payroll and Withholding Taxes | 4/15/02 & 4/30/02 | $22,828 | 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. 25
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?
- 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?
o: Yes Explain:
ý:No
o: Yes Explain:
ý: 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 | | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
03/31/2002 | $ | 461,605 | $ | 3,750 | 04/29/2002 | $ | 3,750.00 | 1347 |
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: 5/23/2002 Signed: /s/ ALEX CORBETT
SCHEDULE A
SNTL, SNTLHC, SNIA and SNIS
Schedule of Operations
One Month ended April 30, 2002
[Bankruptcy filed April 26, 2000]
[unaudited]
(In thousands) | SNTL (formerly SNIG) | SNTLHC (formerly BIG) | SNIA | SNIS | Elimination | Consolidated Total | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenues: | ||||||||||||||||||||
Net investment income | $ | 1 | $ | — | $ | — | $ | 8 | $ | — | $ | 9 | ||||||||
Other income | 567 | (B) | — | — | — | — | 567 | |||||||||||||
Total Revenues | 568 | — | — | 8 | — | 576 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 624 | — | — | — | — | 624 | ||||||||||||||
General and administrative | ||||||||||||||||||||
Other | (186 | ) | 4 | 179 | 1,059 | — | 1,056 | |||||||||||||
Total Expenses | 438 | 4 | 179 | 1,059 | — | 1,680 | ||||||||||||||
Income (loss) before income taxes and preferred securities dividends and accretion | 130 | (4 | ) | (179 | ) | (1,051 | ) | — | (1,104 | ) | ||||||||||
Income tax (benefit) expense | (132 | )(A) | — | — | — | — | (132 | ) | ||||||||||||
Income (loss) before preferred securities dividends and accretion | 262 | (4 | ) | (179 | ) | (1,051 | ) | — | (972 | ) | ||||||||||
Preferred securities dividends and accretion | (1,194 | ) | — | — | — | — | (1,194 | ) | ||||||||||||
Expenses not related to business operations: | ||||||||||||||||||||
Legal and Professional Fees | (187 | ) | (1 | ) | — | — | — | (188 | ) | |||||||||||
Other non-operating expenses | (4 | ) | (3 | ) | (1 | ) | (8 | ) | — | (16 | ) | |||||||||
(1,123 | ) | (8 | ) | (180 | ) | (1,059 | ) | — | (2,370 | ) | ||||||||||
Equity in net income (loss) from subsidiaries | (1,248 | ) | (1,240 | ) | — | — | 2,487 | (1 | ) | |||||||||||
Net (Loss) Income | $ | (2,371 | ) | $ | (1,248 | ) | $ | (180 | ) | $ | (1,059 | ) | $ | 2,487 | $ | (2,371 | ) | |||
- (A)
- In April 2002, SNTL Corporation received a $132K tax refund from the State of Delaware.
- (B)
- On April 19, 2002, SNTL Corporation received $567K from Arthur Andersen for litigation settlement.
SCHEDULE B
SNTL Corporation and Subsidiaries in Bankruptcy
Aging of Accounts Payable and Receivable
As of April 30, 2002
SNTL Corporation
(formerly Superior National Insurance Group)
| | Non-Intercompany Accounts | | Intercompany Accounts | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Accounts Payable | Accounts Receivable | | Accounts Payable | Accounts Receivable | |||||||||||
Current | Under 30 days | 796,803 | 1,000 | — | 742,774 | ||||||||||||
Overdue | 31 - 60 days | 592,993 | — | — | 808,050 | ||||||||||||
Overdue | 61 - 90 days | 781,174 | — | 64,359 | 306,168 | ||||||||||||
Overdue | 91 - 120 days | 46,485 | 13,193 | 206,942 | 68,882 | ||||||||||||
Overdue | 121 + days | 954,510 | 65,137 | 5,237,080 | 2,168,219 | (E) | |||||||||||
Total | $ | 3,171,995 | $ | 79,330 | [A] | $ | 5,508,381 | $ | 4,094,093 | ||||||||
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 | — | — | — | 443,180 | ||||||||||||
Overdue | 91 - 120 days | — | — | — | 206,942 | ||||||||||||
Overdue | 121 + days | — | 0 | — | 20,200,924 | (E) | |||||||||||
Total | $ | — | $ | 0 | (D) | $ | — | $ | 20,851,047 | ||||||||
Superior National Insurance Services
| | Non-Intercompany Accounts | | Intercompany Accounts | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Accounts Payable | Accounts Receivable | | Accounts Payable | Accounts Receivable | ||||||||||
Current | Under 30 days | 318,625 | (0 | ) | 621,210 | 46,731 | ||||||||||
Overdue | 31 - 60 days | — | (0 | ) | 700,606 | — | ||||||||||
Overdue | 61 - 90 days | 2 | 0 | 490,379 | — | |||||||||||
Overdue | 91 - 120 days | (0 | ) | (0 | ) | 0 | — | |||||||||
Overdue | 121 + days | 36,455 | 4,642,173 | 0 | 386,657 | |||||||||||
Total | $ | 355,082 | $ | 4,642,173 | [B] | $ | 1,812,195 | $ | 433,388 | |||||||
Superior National Insurance Administrators
| | Non-Intercompany Accounts | | Intercompany Accounts | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Accounts Payable | Accounts Receivable | | Accounts Payable | Accounts Receivable | ||||||||||
Current | Under 30 days | 111,180 | — | 168,295 | — | |||||||||||
Overdue | 31 - 60 days | — | — | 107,444 | — | |||||||||||
Overdue | 61 - 90 days | — | — | 194,611 | — | |||||||||||
Overdue | 91 - 120 days | (0 | ) | — | 68,882 | — | ||||||||||
Overdue | 121 + days | — | 0 | 2,527,361 | 98,383 | |||||||||||
Total | $ | 111,180 | $ | 0 | [C] | $ | 3,066,593 | $ | 98,383 | |||||||
Consolidated
| | Non-Intercompany Accounts | | Intercompany Accounts | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Accounts Payable | Accounts Receivable | | Accounts Payable | Accounts Receivable | ||||||||||
Current | Under 30 days | 1,226,608 | 1,000 | 789,505 | 789,505 | |||||||||||
Overdue | 31 - 60 days | 592,993 | (0 | ) | 808,050 | 808,050 | ||||||||||
Overdue | 61 - 90 days | 781,176 | 0 | 749,349 | 749,348 | |||||||||||
Overdue | 91 - 120 days | 46,485 | 13,193 | 275,823 | 275,823 | |||||||||||
Overdue | 121 + days | 990,965 | 4,707,311 | 7,764,441 | 22,854,183 | |||||||||||
Total | $ | 3,638,227 | $ | 4,721,503 | $ | 10,387,169 | $ | 25,476,911 | ||||||||
- [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 $13.8 million commissions receivable that were written off in December 2001. Nevertheless, Debtor continues to assert its ownership of these commissions receivable and will continue to pursue its rights of offset and other methods to effectuate collection.
- [C]
- Amounts shown in accounts receivable do not include $7.1 million commissions receivable that were written off in December 2001. Nevertheless, Debtor continues to assert its ownership of these commissions receivable and will continue to pursue its rights of offset and other methods to effectuate collection.
- [D]
- Amounts shown in accounts receivable do not include $0.6 million receivable that was written off in December 2001. Nevertheless, Debtor continues to assert its ownership of this receivable and will continue to pursue its rights of offset and other methods to effectuate collection.
- [E]
- 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
APRIL 30, 2002
SNTL (formerly 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 | Next Payment Due | | ||||||||
Creditor/Lessor | 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 | | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Payments per Lease/Contract | Amount of Each Payment | Next Payment Due | | ||||||||
Creditor/Lessor | 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 | Next Payment Due | | ||||||||
Creditor/Lessor | 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 | Next Payment Due | | ||||||||
Creditor/Lessor | 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
SNTL Corporation and Subsidiaries in Bankruptcy
Debtor in Possession
Insurance Coverage
April 30, 2002
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 | 30-Apr-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 Workmens' 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 | |
Note 4: | California is a monthly reporting policy. At the conclusion of each month we receive a voluntary payroll report request. We complete the report, calculate the premium and remit the premium after the fact. |
April 30, 2002 Company | Agent | Type of Insurance | Amount of Coverage | Policy Exp. Date | SCHEDULE E Premium paid thru date | |||||
---|---|---|---|---|---|---|---|---|---|---|
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA | Hogan Insurance | Commercial General Liability Package BWCP 001385 General Liability Advertising Injury Employee Benefit Liability | $1 million per occurrence $2 million aggregate excluded $1 million per claim $1 million aggregate | 11/01/2002 | 11/01/2002 | |||||
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA | Hogan Insurance | Automobile (non-owned) RPC 435072 Liability Physical Damage/Comp/Collision | $1 million $30,000 $100 deductible comp/ $250 collision | 11/01/2002 | 11/01/2002 | |||||
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA | Carpenter Moore | Directors & Officers (run-off) Hartford Lloyd's of London Gulf Insurance Company Executive Risk Indemnity Philadelphia Indemnity | $5,000,000 $5,000,000 xs $5,000,000 $10,000,000 xs $10,000,000 $10,000,000 xs $20,000,000 $10,000,000 xs $30,000,000 | 05/01/2003 | 05/01/2003 | |||||
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA | Hogan Insurance | Employment Practice Liability | $1 million per loss & in the aggregate | 01/15/2003 | 01/15/2003 | |||||
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA | Hogan Insurance | Commercial Umbrella—CUBW 793401 Evanston Insurance Company | $10 million per occurrence $10 million aggregate | 11/01/2002 | 11/01/2002 | |||||
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA | Hogan Insurance | Excess Liability United National Insurance XTA0000927 | $10 million per occurrence $10 million aggregate | 11/01/2002 | 11/01/2002 | |||||
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA | Andreini & Co | Accident Policy (Trip/Travel) Hartford | $500,000 to $1,000,000 $5 million aggregate (single accident) | 12/31/2002 | 12/31/2002 | |||||
SNTL CORP & Sub's | Hogan Insurance | Professional Liability—(Binder) Indian Harbor Insurance ELU 8286301 | $1 million per occurrence $1 million aggregate | 08/08/2002 | 08/08/2002 | |||||
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
April 30, 2002
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, SNIA
Name of Professional | Type Professional | Post-Petition Unpaid Total | | ||||
---|---|---|---|---|---|---|---|
Paul, Weiss, Rifkind, Wharton & Garrison | Legal fees | $ | 89,629 | Note A | |||
Latham & Watkins | Counsel for Official Committee of Unsecured Creditors | $ | 392,654 | Note A | |||
Steve Eldrige | Tax consulting | $ | 7,980 | ||||
Quinn Emanuel Urquhart Oliver & Hedges LLP | Special litigation counsel | $ | 2,057,553 | Note A | |||
Mannat Phelps | Legal fees | $ | 188,032 | Note A & E | |||
KPMG LLP | Audit & consulting fees | $ | 661,408 | Note A | |||
Riordan & McKinzie | Corporate counsel | $ | 123,205 | Note A, C & E | |||
Pachulski, Stang, Ziehl, Young & Jones LLP | General bankruptcy counsel | $ | 226,959 | Note A & D | |||
Miller, Herbers, Lehmann & Assoc. | Legal fees | $ | 218,148 | Note A | |||
Davis, Fox & Berke | Legal fees—Hanover lawsuit | $ | 8,122 | Note A & B | |||
Edward Shoop | Actuarial counseling fees | $ | 148,354 | Note A |
Note A—Amount includes 20% hold back on professional fees sanctioned by the Bankruptcy Court.
Note B—Amount represents fees & expense through November 30, 2001.
Note C—SNIG has a retainer with Riordan & McKinzie. $500,000 of the retainer was returned to SNTL Corp. on March 15, 2002, therefore the retainer balance as of 4/30/02 is $48,422.57.
Note D—Amount represents fees & expenses through December 31, 2001.
Note E—Amount represents fees & expenses through March 31, 2002.
SNTL, SNTLHC, SNIA and SNIS Schedule of Operations One Month ended April 30, 2002 [Bankruptcy filed April 26, 2000] [unaudited]