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OFFICE OF THE UNITED STATES TRUSTEE
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IN RE: ) DEBTOR IN POSSESSION OPERATING REPORT
)
SN INSURANCE SERVICES ) REPORT NUMBER 3 Page 1 of 3
) FOR THE PERIOD FROM: 01-Jun-00
DEBTOR ) TO: 30-Jun-00
___________________________________) _________________________________________
CHAPTER 11 CASE NO. SV00-14100-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 ============
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Revised April 1989 OPERATING REPORT UST-4
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DEBTOR IN POSSESSION OPERATING REPORT NO. 3
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Page 2 of 3
2. Aging of Accounts Payable and Receivable (exclude pre-petition debt from
accounts payable):
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Accounts Payable Accounts Receivable
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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:
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Post-Petition
Frequency of Payments Not Made
Payments per Amount of --------------------
Creditor/Lessor Lease/Contract Each Payment Next Payment Due Number Amount
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NONE
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4. Tax Liability:
Gross Payroll Expense For Period $1,340,992
Gross Sales for Period Subject to Sales Tax $0
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Post Petition Taxes
Date Paid Amount Paid * Still Owing
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Federal Payroll and Withholding Taxes 06/09/00 & 06/23/00 $378,082 0
State Payroll and Withholding Taxes 06/09/00 & 06/23/00 $53,103 0
State Sales and Use Tax N/A $0 N/A
Real Property Taxes N/A $0 N/A
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ALL PAYROLL TAXES PID 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
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Carrier/ Amount of Policy Premium Paid
Agent Coverage Exp. Date Thru Date
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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
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SCHEDULE A
SNIG, BIG, SNIA and SNIS
Schedule of Operations
One Month ending June 30, 2000
(Unaudited)
(In thousands)
Consolidated
SNIG BIG SNIA SNIS Elimination Total
-------- -------- -------- -------- ------------- --------
Revenues:
Commission Income $ -- $ -- $ 720 $ 1,706 $ -- $ 2,426
Net investment income 10 19 -- 96 -- 125
-------- -------- -------- -------- -------- --------
Total Revenues 10 19 720 1,802 -- 2,551
-------- -------- -------- -------- -------- --------
Expenses
Interest Expenses: 1,127 -- -- -- -- 1,127
General and administrative
Other 44 -- 105 161 -- 310
-------- -------- -------- -------- -------- --------
Total Expenses 1,171 -- 105 161 -- 1,437
-------- -------- -------- -------- -------- --------
Income (loss) before income taxes and preferred
securities dividends and accretion (1,161) 19 615 1,641 -- 1,114
Income tax (benefit) expense 61 -- -- -- -- 61
-------- -------- -------- -------- -------- --------
Income (loss) before preferred securities
dividends and accretion (1,222) 19 615 1,641 -- 1,053
Preferred securities dividends and accretion (997) -- -- -- -- (997)
Expenses not related to business operations:
Legal and Professional Fees (320) -- -- -- -- (320)
Other non-operating expenses -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
(2,539) 19 615 1,641 -- (264)
Equity in net income (loss) from subsidiaries 2,283 2,264 -- -- (4,539) 5
-------- -------- -------- -------- -------- --------
Net (Loss) Income $ (256) $ 2,283 $ 615 $ 1,641 $ (4,539) $ (256)
======== ======== ======== ======== ======== ========
SCHEDULE B
Superior National Insurance Group, Inc. in Bankruptcy
Debtor in Possession Operating Report No. 1
Aging of Accounts Payable and Receivable - 2
As of June 30, 2000
Superior National Insurance Group
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Non-Intercompany Accounts Intercompany Accounts
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Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable
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Current Under 30 days 5,511,317 25,000 -- 934,609
Overdue 31-60 days 3,580,852 10,000 1 --
Overdue 61-90 days -- 40,000 -- 3,080,486
Overdue 91-120 days -- 35,000 -- 1,565,540
Overdue 121+ days -- 562,158 -- 4,593,642
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Total $ 9,092,169 $ 672,158 $ 1 $10,174,278
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Business Insurance Group
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Non-Intercompany Accounts Intercompany Accounts
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Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable
-------------------------------------- -------------------------------------
Current Under 30 days 16,227 98,812 -- --
Overdue 31-60 days 215 29,524 -- 1
Overdue 61-90 days -- 3,058 -- --
Overdue 91-120 days 16,770 -- -- --
Overdue 121+ days -- 617,144 -- 14,961,591
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Total $ 35,212 $ 748,538 $ -- $14,961,592
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Superior National Insurance Services
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Non-Intercompany Accounts Intercompany Accounts
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Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable
-------------------------------------- -------------------------------------
Current Under 30 days 5,900,339 2,718,937 73,517 201,832
Overdue 31-60 days 6,919,765 2,015,904 -- --
Overdue 61-90 days -- 3,406,140 -- 6,594
Overdue 91-120 days -- 2,339,877 -- 14,903
Overdue 121+ days -- 6,868,562 -- 303,520
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Total $12,820,104 $17,349,421 $ 73,517 $ 526,849
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Superior National Insurance Administrators
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Non-Intercompany Accounts Intercompany Accounts
-------------------------------------- -------------------------------------
Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable
-------------------------------------- -------------------------------------
Current Under 30 days 19,661 1,220,544 933,167 --
Overdue 31-60 days 744,858 1,505,241 -- --
Overdue 61-90 days -- 2,104,118 -- --
Overdue 91-120 days -- 2,456,479 -- 8,079
Overdue 121+ days -- 4,835,723 -- 88,665
-------------------------------------- -------------------------------------
Total $ 764,518 $12,122,104 $ 933,167 $ 96,744
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Consolidated
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Non-Intercompany Accounts Intercompany Accounts
-------------------------------------- -------------------------------------
Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable
-------------------------------------- -------------------------------------
Current Under 30 days 11,447,544 4,063,293 1,006,685 1,136,441
Overdue 31-60 days 11,245,690 3,560,569 1 1
Overdue 61-90 days -- 5,553,316 -- 3,087,080
Overdue 91-120 days 18,770 4,831,356 -- 1,588,521
Overdue 121+ days -- 12,883,588 -- 19,947,418
-------------------------------------- -------------------------------------
Total $22,712,004 $30,892,221 $1,006,686 $25,759,462
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Superior National Insurance Group, Inc. in Bankruptcy SCHEDULE D
Debtor in Possession Operating Report No. 1
Insurance Coverages
As of June 30, 2000
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Amount of Policy Premium Paid
State Carrier Agent Coverage Exp Date Thru Date
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Arizona Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 30-Jun-00
Arkansas Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 30-Jun-00
California State Compensation
Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 01-Jun-01 30-Jun-00
Colorado Pinnacol Assurance Di Buduo & De Fendis Insurance Group Statutory 01-Jun-01 30-Jun-00
Florida Florida W/C Joint
Underwriting
Association Inc. Di Buduo & De Fendis Insurance Group Statutory 09-Jun-01 30-Jun-00
Georgia Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 30-Jun-00
Illinois Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 30-Jun-00
Indiana Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 13-Jul-01 30-Jun-00
Kansas Travelers Insurance Di Buduo & De Fendis Insurance Group Statutory 11-Aug-01 30-Jun-00
Company
Louisiana Louisianca W/C
Corporation Di Buduo & De Fendis Insurance Group Statutory 31-May-01 30-Jun-00
Missouri Travelers Property &
Casualty Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 30-Jun-00
New Jersey Granite State Insurance
Company Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 30-Jun-00
New Mexico New Mexico Mutual
Casualty Company Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 30-Jun-00
New York The State Insurance
Fund (N.Y.) Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 02-Jun-01
Oklahoma State Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 01-Jul-01 01-Jul-01
Oregan Liberty Northwest
Insurance Corporation Di Buduo & De Fendis Insurance Group Statutory 01-Jul-01 30-Jun-00
Pennsylvania State Workmen's
Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 02-Jun-01
Tennessee The Cincinnati
Insurance Companies Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 30-Jun-00
Texas Texas W/C Insurance
Fund Di Buduo & De Fendis Insurance Group Statutory 18-Jul-01 01-Jun-01
Utah Workers' Compansation
Fund of Utah Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 02-Jun-01
Wisconsin Tri-State Insurance
Company of Minnesota Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 03-Jun-01
New Jersey Centre Insurance
Company Di Buduo & De Fendis Insurance Group Statutory 01-Jun-00 01-Jun-01
All Other
State Centre Insurance
Company Di Buduo & De Fendis Insurance Group Statutory 12-Jun-00 01-Jun-01
Note: Within all of the policies identified above the following entities are
covered for Workers' Compensation: SNIG, BIG, SNIA, and SNIS.
June 30, 2000 Schedule E
Policy Exp. Premium paid
Company Agent Type of Insurance Amount of Coverage Date thru date
- ------- ----- ----------------- ------------------ ----------- -----------
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Commercial General Liability
Package
General Liability $1 million per occurence 10/1/00 10/1/00
$2 million aggregate
Advertising Injury excluded
Employee Benefit Liability $1 million per claim
$2 million aggregate
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Automobile
Liability $1 million 12/10/00 12/10/00
Medical $5,000
Uninsured Motorist $500,000
Physical Damage Actual value less $500
deductible
SNIG, BIG, SNIS, & SNIA Carpenter Moore Directors & Officers (run-off)
Reliance $5,000,000 5/1/03 5/1/03
Lloyd's of London $5,000,000 xs $5,000,000
Gulf Insurance Company $10,000,000 xs $10,000,000
Executive Risk Indemnity $10,000,000 xs $20,000,000
Philadelphia Indemnity $10,000,000 xs $30,000,000
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Employer Practice Liability $1 million per loss 12/10/00 12/10/00
& in the aggregate
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Fiduciary Liability $5 million per loss 12/10/00 12/10/00
& in the aggregate
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Fidelity Bond $5 million 12/10/00 12/10/00
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Commercial Umbrella $20 million per occurence 12/10/00 12/10/00
$20 million aggregate
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Excess Liability $10 million per occurence 12/10/00 12/10/00
$10 million aggregate
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Difference in Condition $10 million per occurence 12/10/00 12/10/00
$10 million aggregate
*125,000 deductible,
minimum and 5% of total
insurable property
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Difference in Condition
Excess $10 million 12/10/00 12/10/00
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Accident Policy (Life/Travel) $1 million to $3 million 1/1/01 1/1/01
(depends on rank of
officer)
BIG only DiBudio & DeFendis Professional Liability Run Off $10 million per loss 12/10/00 12/10/00
BIG companies only/acts b/f & in the aggregate
12/10/99
* $500,000 deductible
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DEBTOR IN POSSESSION OPERATING REPORT NO. 3
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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):
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Type Post-Petition
Name of Professional Professional Unpaid Total
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Pachulski Stang Ziehl Attorney None
Young & Jones
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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)
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Quarterly
Quarterly Disbursements Quarterly Quarterly
Period Ending for Quarter Fee Date Paid Amount Paid Check No. Fee Still Owing
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6/30/00 $31,177,419.00 $10,000.00 $10,000.00
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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: 10-11-00 Signed: /s/ Alex Corbett
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