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OFFICE OF THE UNITED STATES TRUSTEE
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IN RE: ) DEBTOR IN POSSESSION OPERATING REPORT
)
BUSINESS INSURANCE GROUP ) REPORT NUMBER 3 Page 1 of 3
) FOR THE PERIOD FROM: 01-Jun-00
DEBTOR ) TO: 30-Jun-00
___________________________________) _________________________________________
)
CHAPTER 11 CASE NO. SV00-14101-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, Photocopiers, 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.2
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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:
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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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SEE ATTACHED SCHEDULE C
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* The Debtor acknowledges the possibility of additional leases and is
currently researching its records. Any new identified lessors will be included
in future reports.
4. Tax Liability:
Gross Payroll Expense For Period $0
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 N/A $0 N/A
State Payroll and Withholding Taxes N/A $0 N/A
State Sales and Use Tax N/A $0 N/A
Real Property Taxes N/A $0 N/A
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* 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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DEBTOR IN POSSESSION OPERATING REPORT NO. 3
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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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Pachuiski Stang Ziehl
Young & Jones Attorney None
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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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6/30/2000 $660.00 $250.00 $250.
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I, Alex Corbett - CFO, 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
-------- -------------------------
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 Expense 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 income (loss) from subsidiaries 2,283 2,264 -- -- (4,539) 8
-------- -------- -------- -------- -------- --------
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
-------------------------------------- -------------------------------------
Non-Intercompany Accounts Intercompany Accounts
-------------------------------------- -------------------------------------
Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable
-------------------------------------- -------------------------------------
Current Under 30 days 5,511,317 25,000 -- 934,609
Overdue 31-60 days 3,580,652 10,000 1 --
Overdue 61-90 days -- 40,000 -- 3,080,486
Overdue 91-120 days -- 35,000 -- 1,585,540
Overdue 121+ days -- 582,158 -- 4,593,642
-------------------------------------- -------------------------------------
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
-------------------------------------- -------------------------------------
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 18,770 -- -- --
Overdue 121+ days -- 617,144 -- 14,951,591
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Total $ 35,212 $ 748,538 $ -- $14,951,592
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Superior National Insurance Services
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Non-Intercompany Accounts Intercompany Accounts
-------------------------------------- -------------------------------------
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 6,919,785 2,015,904 -- --
Overdue 61-90 days -- 3,406,140 -- 8,594
Overdue 91-120 days -- 2,339,677 -- 14,903
Overdue 121+ days -- 5,868,562 -- 303,520
-------------------------------------- -------------------------------------
Total $12,820,104 $17,349,421 $ 73,517 $ 526,849
-------------------------------------- -------------------------------------
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 $ 764,519 $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 4,083,293 1,006,684 1,136,441
Overdue 31-60 days 11,245,690 3,560,669 1 1
Overdue 61-90 days -- 5,553,316 -- 3,087,080
Overdue 91-120 days 18,770 4,831,356 -- 1,586,521
Overdue 121+ days -- 12,883,588 -- 19,947,418
-------------------------------------- -------------------------------------
Total $22,712,004 $30,892,221 $1,006,685 $25,759,462
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SCHEDULE C
JUNE 30, 2000
SNIG
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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BancBoston Leasing Inc. /
Fleet Capital Leasing Monthly $235,337.00 07/01/00 2 $44,443.56
Bemiston Tower, Inc. PM Realty Advisor Monthly $ 5,111.33 08/01/00 None
Citizens Leasing Corporation Monthly See BIG's schedule for details
Dell Financial Services Monthly $ 8,264.07 07/20/00 See Note A
Equity Office Properties Monthly $ 20,026.42 08/01/00 None
HQ Boca Raton N/A N/A N/A N/A
IKON Office Solutions Inc. / IOS Capital Monthly Various Various See Note B
Kilroy Realty Corp. Monthly $153,583.82 07/01/00 None
Neopost Monthly Various Various See Note B
Pitney Bowes Credit Corp. Monthly Various Various See Note B
Sharp Electronics Credit Co. Monthly $ 350.33 08/01/00 None
Stringer Business Systems Inc. Monthly Various Various See Note B
Tiger Ventura County Monthly $ 16,795.17 08/01/00 None
Toshiba America Information Sys. Monthly Various Various See Note B
Zodiac Development Monthly $ 9,454.31 08/01/00 None
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Note A: Payments on various Dell leases have been paid on a monthly
basis; however, due to billing discrepancies the actual amounts paid are
being confirmed with Dell Financial Services.
Note B: Various copier and postal equipment lease payment history is presently
being researched.
BIG
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
- ------------------------------------------------------------------------------------------------------------------------------------
Citizens Leasing Corporation Monthly $206,798.26 07/01/00 None
Colony Realty N/A N/A N/A N/A
Dell Financial Services Monthly $ 48,476.06 07/15/00 See Note A
Filenet Corporation - lease was sold
to Principal Management N/A N/A N/A N/A
Kaiser-Francis Oil Company Monthly $ 3,778.00 08/01/00 None
Mack Cali Realty /
500 Columbia Tpk Assoc. LLC Monthly $ 9,245.77 08/01/00 None
Principal Management Corporation /
GCI CAPITAL, INC. Monthly $ 30,827.28 07/01/00 None
Service Resource Industries /
Wall Street Office Business, Inc. Monthly $ 4,230.00 No more pmts due None
SP Environmental Systems /
Union Pacific RR Co. Monthly $ 12,465.16 08/01/00 None
Transwestern CG Partner Monthly $ 5,908.75 08/01/00 None
US Orthopedic Sublease of Union Pacific RR Co.
Woodland III Holdings, LLC N/A N/A N/A N/A
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Note A: Payments on various Dell leases have been paid on a monthly basis;
however, due to billing discrepancies the actual amounts paid are being
confirmed with Dell Financial Services.
Superior National Insurance Group, Inc. in Bankruptcy SCHEDULE D
Debtor in Possession Operating Report No. 1
Insurance Coverage - 5
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
Company Di Buduo & De Fendis Insurance Group Statutory 11-Aug-01 30-Jun-00
Louisiana Louisiana 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 Sisle 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
Oregon Liberty Northwest
Insurance Corporation Di Buduo & De Fendis Insurance Group Statutory 01-Jul-01 30-Jun-00
Pennsylvania State Workmens'
Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 03-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 16-Jul-01 01-Jun-01
Utah Workers' Compensation
Fund of Utah Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 03-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-00
All Other State Centre Insurance
Company Di Buduo & De Fendis Insurance Group Statutory 01-Jun-00 01-Jun-00
Note: Within all of the policies identified above the following entities are
covered for Workers' Compensation: SNIG, BIG, SNIA, and SNIS.
June 30, 200 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 $1 million
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 occurrence 12/10/00 12/10/00
$10 million aggregate
*$25,000 deductible, minimum
and 5% of total insurable property
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Difference in Condition $10 million 12/10/00 12/10/00
Excess
SNIG, BIG, SNIS, & SNIA DiBudio & DeFendis Accident Policy $1 million to $3 million 1/1/01 1/1/01
(Life/Travel) (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