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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 4 Page 1 of 3
) FOR THE PERIOD FROM: 01-Jul-00
DEBTOR ) TO: 31-Jul-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, 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 Expense 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. 4
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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
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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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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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SCHEDULE A
SNIG, BIG, SNIA, and SNIS
Schedule of Operations
One Month ending July 31, 2000
(Unaudited)
(In thousands)
Consolidated
SNIG BIG SNIA SNIS Elimination Total
-------- -------- -------- -------- ------------- --------
Revenues:
Commission Income $ -- $ -- $ 525 $ 1,085 $ -- $ 1,610
Net Investment Income 12 33 3 258 -- 306
-------- -------- -------- -------- -------- --------
Total Revenues 12 33 528 1,343 -- 1,916
-------- -------- -------- -------- -------- --------
Expenses
Interest Expense 1,126 -- -- -- -- 1,126
General and administrative
Other 387 -- (16) (209) -- 162
-------- -------- -------- -------- -------- --------
Total Expenses 1,513 -- (16) (209) -- 1,288
-------- -------- -------- -------- -------- --------
Income (loss) before income taxes and preferred
securities dividends and accretion (1,501) 33 543 1,552 -- 627
Income tax (benefit) expense 0 -- -- -- -- 0
-------- -------- -------- -------- -------- --------
Income (loss) before preferred securities
dividends and accretion (1,501) 33 543 1,552 -- 627
Preferred securities dividends and accretion (998) -- -- -- -- (998)
Expenses not related to business operations:
Legal and Professional Fees -- -- -- -- -- --
Other non-operating expenses -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
(2,499) 33 543 1,552 -- (371)
Equity in income (loss) from subsidiaries 2,123 2,090 -- -- (4,218) (5)
-------- -------- -------- -------- -------- --------
Net (Loss) Income $ (376) $ 2,123 $ 543 $ 1,552 $ (4,218) $ (376)
======== ======== ======== ======== ======== ========
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 July 31, 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 4,314,852 50,000 -- 1,465,087
Overdue 31-60 days 4,584,105 25,000 -- 934,609
Overdue 61-90 days 3,578,715 10,000 1 --
Overdue 91-120 days -- 40,000 -- 3,080,486
Overdue 121+ days -- 584,665 -- 5,621,547
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Total $12,477,673 $ 689,665 $ 1 $11,101,729
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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 -- 23,965 -- --
Overdue 31-60 days 16,227 98,812 -- --
Overdue 61-90 days 215 29,524 -- 1
Overdue 91-120 days -- 3,058 -- --
Overdue 121+ days -- 598,374 -- 14,963,853
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Total $ 16,442 $ 753,753 $ -- $14,963,854
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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 10,755,387 2,981,394 100,259 --
Overdue 31-60 days 5,106,751 1,572,141 -- 201,832
Overdue 61-90 days 7,245,252 1,423,486 -- 127,737
Overdue 91-120 days -- 1,695,689 -- 6,594
Overdue 121+ days -- 7,400,446 -- 321,480
-------------------------------------- -------------------------------------
Total $23,107,389 $15,073,155 $ 100,259 $ 657,624
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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 1,271,222 1,865,148 894,505 --
Overdue 31-60 days (920,417) 1,538,459 933,167 --
Overdue 61-90 days 524,915 1,452,989 127,737 --
Overdue 91-120 days -- 2,327,286 -- --
Overdue 121+ days -- 8,715,793 -- 96,383
-------------------------------------- -------------------------------------
Total $ 875,720 $13,699,675 $1,955,410 $ 96,383
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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 16,341,461 4,720,527 994,764 1,465,087
Overdue 31-60 days 8,786,666 3,234,411 933,167 1,136,441
Overdue 61-90 days 11,349,097 2,915,999 127,739 127,739
Overdue 91-120 days -- 4,066,033 -- 3,087,080
Overdue 121+ days -- 15,279,278 -- 21,005,243
-------------------------------------- -------------------------------------
Total $36,477,224 $30,216,249 $2,055,670 $26,821,590
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SCHEDULE C
JULY 31, 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 08/01/00 None
Bemiston Tower, Inc. PM Realty Advisor Monthly $ 5,343.67 09/01/00 None
Citizens Leasing Corporation Monthly See BIG's schedule for details
Dell Financial Services Monthly $ 8,264.07 08/20/00 See Note A
Equity Office Properties Monthly $ 20,313.08 09/01/00 None
IKON Office Solutions, Inc. / IOS Capital Monthly Various Various See Note B
Kilroy Realty Corp. Monthly $153,583.82 08/01/00 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 09/01/00 None
Stringer business Systems Inc. Monthly Various Various See Note B
Tiger Ventura County Monthly $ 16,795.17 09/01/00 None
Toshiba America Information Sys. Monthly Various Various See Note B
Zodiac Development Monthly $ 9,454.31 09/01/00 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
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Citizens Leasing Corporation Monthly $206,798.26 08/01/00 None
Dell Financial Services Monthly $ 48,476.08 08/15/00 See Note A
Kaiser-Francis Oil Company Monthly $ 3,620.58 09/01/00 None
Mack Cali Realty /
500 Columbia Tpk Assoc. LLC Monthly $ 9,245.77 09/01/00 None
Principal Management Corporation /
GCI CAPITAL, INC. Monthly $ 30,827.28 08/01/00 None
SP Environmental Systems /
Union Pacific RR Co. Monthly $ 12,465.16 09/01/00 None
Transwestern CG Partner Monthly $ 5,908.75 09/01/00 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
Superior National Insurance Group, Inc. in Bankruptcy SCHEDULE D
Debtor in Possession Operating Report No. 1
Insurance Coverage - 5
As of July 31, 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 31-Jul-00
Arkansas Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 31-Jul-00
California State Compensation
Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 01-Jun-01 31-Jul-00
Colorado Pinnacol Assurance Di Buduo & De Fendis Insurance Group Statutory 01-Jun-01 31-Jul-00
Florida Florida W/C Joint
Underwriting
Association, Inc. Di Buduo & De Fendis Insurance Group Statutory 01-Jun-01 31-Jul-00
Georgia Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 31-Jul-00
Illinois Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 12-Jul-01 31-Jul-00
Indiana Liberty Mutual Group Di Buduo & De Fendis Insurance Group Statutory 13-Jul-01 13-Jul-01
Kansas Travelers Insurance Di Buduo & De Fendis Insurance Group Statutory 11-Aug-01 31-Jul-00
Company
Louisiana Louisiana W/C
Corporation Di Buduo & De Fendis Insurance Group Statutory 31-May-01 31-Jul-00
Missouri Travelers Property &
Casualty Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 31-Jul-00
New Jersey Granite State Insurance
Company Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 31-Jul-00
New Mexico New Mexico Mutual
Casualty Company Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 31-Jul-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
Oregon Liberty Northwest
Insurance Corporation Di Buduo & De Fendis Insurance Group Statutory 01-Jul-01 31-Jul-00
Pennsylvania State Workrmens'
Insurance Fund Di Buduo & De Fendis Insurance Group Statutory 03-Jun-01 03-Jun-01
Tennessee The Cincinnati
Insurance Company Di Buduo & De Fendis Insurance Group Statutory 02-Jun-01 31-Jul-00
Texas Texas W/C Insurance
Fund Di Buduo & De Fendis Insurance Group Statutory 18-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.
July 31, 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 $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
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DEBTOR IN POSSESSION OPERATING REPORT NO. 4
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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,
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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6/30/00 $660.00 $250.00 $250.00
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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
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