Exhibit 99.1
United States Bankruptcy Court
Eastern District Of Kentucky
Ashland Division
IN RE: CASE NO. 03-10078
DEBTOR(S) CHAPTER 11
Monthly Operating Report For Month Ending November 1, 2003
Comes now Ashland Steel Liquidating Company, fka Kentucky Electric
Steel, Inc., debtor in possession and herby submits its Monthly Operating Report
for the Periods commencing September 28, 2003 and ending November 1, 2003 as
shown by the report and exhibits consisting of 14 pages and containing the
following, as indicated:
___X____ Monthly Reporting Questionnaire (Attachment 1)
___X____ Comparative Balance Sheets (Forms OPR - 1 & OPR - 2)
___X____ Summary of Accounts Receivable (Form OPR - 3)
___X____ Schedule of Post - Petition Liabilities (Form OPR - 4)
___X____ Statement of Income (Loss) Form OPR - 5)
___X____ Statement of Sources and Uses of Cash (Form OPR - 6)
I declare under penalty of perjury that this report and all attachments
are true and correct to the best of my knowledge and belief. I also hereby
certify that the original Monthly Operating Report was filed with the Bankruptcy
Court Clerk and a copy was delivered to the U.S. Trustee.
Date: 11-19-03 DEBTOR
--------
By: /s/ William J. Jessie
----------------------------------
(Signature)
Name & Title: William J. Jessie, President
--------------------------------
(Print or Type)
Address: US Route 60
----------------------------------------------
Ashland, KY 41101
----------------------------------------------
Telephone Number: (606) 929 - 1200
----------------------------
Attachment 1 (Page 1)
Chapter 11
Monthly Operating Report
Monthly Reporting Questionnaire
CASE NAME: Ashland Steel Liquidating Company
fka Kentucky Electric Steel, Inc.
CASE NUMBER: 03-10078
MONTH OF: NOVEMBER
1. Payroll - State the amount of all executive wages paid and taxes withheld and
paid
Wages Paid Taxes(1)
Name and Title of ----------------------------------- ------------------------------------
Executive Gross Net Due Paid
--------- ----- --- --- ----
William J. Jessie - $ 17,580 $ 12,122 $ 3,808 $ 3,808
(President and CFO)
- -----------------------------------------------------------------------------------------------------------------------------------
William H. Gerak - - - - -
(Vice President of Administration)
- -----------------------------------------------------------------------------------------------------------------------------------
Joseph E. Harrison - - - - -
(Vice President of Sales and Marketing)
- -----------------------------------------------------------------------------------------------------------------------------------
Jack W. Mehalko - - - - -
(Interim President)
- -----------------------------------------------------------------------------------------------------------------------------------
Total Executive Payroll: $ 17,580 $ 12,122 $ 3,808 $ 3,808
-------------------------------------------------------------------------------------
2. Insurance - Is workers' compensation and other insurance in effect? Yes Are
Payments Current? YES If any policy has lapsed, been replaced or renewed, state
so in the schedule below. Attach a copy of the new policy's binder pr cover
page.
Type Name of Coverage Expiration Premium Date of Coverage Pd.
Carrier Amount Policy # Date Amounts Through
------- -------- -------- ---- ------- -------
Casualty:
-----------------------------------------------------------------------------------------------
Workers Comp.
-----------------------------------------------------------------------------------------------
General Liability:
-----------------------------------------------------------------------------------------------
Vehicle:
-----------------------------------------------------------------------------------------------
Other (Specify)
-----------------------------------------------------------------------------------------------
(1) Taxes include payments made by the employer.
Attachment 1 (Page 2)
Chapter 11
Monthly Operating Report
Monthly reporting Questionnaire
CASE NAME: Ashland Steel Liquidating Company
fka Kentucky Electric Steel, Inc.
CASE NUMBER: 03-10078
MONTH OF: OCTOBER
3. Bank Accounts
Account Type
--------------------------------------------------------------------------------------------
Operating Tax Payroll Other Total
--------- --- ------- ----- -----
Bank Name See attached Exhibit A
--------------- -------------------- ---------------------------- -------------
Account #
--------------- -------------------- ---------------------------- -------------
Beginning Book Balance
--------------- -------------------- ---------------------------- ------------- ------------
Plus: Deposits
--------------- -------------------- ---------------------------- ------------- ------------
Less: Disbursements
--------------- -------------------- ---------------------------- ------------- ------------
Other:
--------------- -------------------- ---------------------------- ------------- ------------
Transfers
- ------------------------------------ --------------- -------------------- ---------------------------- ------------- ------------
Ending Book Balance
--------------- -------------------- ---------------------------- ------------- ------------
4. Postpetition Payments - List any postpetition payments to professionals and
payments on prepetition debts in the schedule below (attach separate sheet if
necessary)
Payments To
- -----------
Professionals (attorneys, accountants, etc.):
Amount Date Check #
-------------------- ---------------------------- --------------------------
Arter & Hadden (1) $ 16,129
- ------------------------------------ -------------------- ---------------------------- --------------------------
- ------------------------------------ -------------------- ---------------------------- --------------------------
TOTAL $ 16,129
Prepetition Creditors:
Senior Note
(Cigna & Modern Woodmen of America) $ 1,174,163 Daily Swept out of Lockbox
---------------------------------------- -------------------- ---------------------------- --------------------------
Revolving line of Credit
(National City & SunTrust) $ 1,038,087 Daily Swept out of Lockbox
- ------------------------------------ -------------------- ---------------------------- --------------------------
- ------------------------------------ -------------------- ---------------------------- --------------------------
- ------------------------------------ -------------------- ---------------------------- --------------------------
- ------------------------------------ -------------------- ---------------------------- --------------------------
TOTAL $ 2,212,250
(1) Based upon agreed court order, this liability was paid by applying the
retainer previously advanced to the firm.
ASHLAND STEEL LIQUIDATING COMPANY
FKA KENTUCKY ELECTRIC STEEL, INC.
CASH SUMMARY FOR THE MONTH ENDING NOVEMBER 1, 2003
EXHIBIT A
Workers Health Cash Collateral Triton/
Compensation Benefits Lockbox General Republic Note
------------- ------------- ------------- ------------- -------------
Bank Name National City National City National City National City National City
Private Client
Group
Account # 754202055 754202063 754119200 70936836 4090-K001-00-7
98239
Beginning Book Balance $ 100,000 $ - $ 291,726 $ (6,874,873) $ 137,442
Plus: Deposits - - 167,433 - -
Less: Disbursements - - - 26,699 -
Transfers/Other:
Transfers
Transfer to NCB Office Account (20,000)
Other
Payment to noteholders
Paydown on line of credit 1,030,838
Paydown on line/fund general account (53,948) 53,948
--------- ------- --------- ------------ ---------
Ending Book Balance $ 100,000 $ - $ 405,212 $ (5,836,786) $ 137,442
========= ======= ========= ============ =========
Office Professional Fee Total
Tax/Other Account Fees Account Account All Accounts
--------- ------- ------------ --------- ------------
Bank Name Bank One National City National City National City
Account # 626225676 39353008 754201618 754202397
626225668
Beginning Book Balance $ 4,169 $ 35,336 $ 100,425 $2,900,000 $ (3,305,775)(1)
Plus: Deposits - - 3,871 - 171,304
Less: Disbursements 4,144 34,586 - - 65,429
Transfers/Other:
Transfers
Transfer to NCB Office Account 20,000 -
Other
Payment to noteholders (1,174,163) (1,174,163)
Paydown on line of credit (1,030,838) -
Paydown on line/fund general account -
--------- -------- --------- ---------- ------------
Ending Book Balance $ 25 $ 20,750 $ 104,295 $ 695,000 $ (4,374,062)
========= ======== ========= ========== ============
(1) The cash summary reconciles to the Monthly
Operating Report as follows:
September 27, 2003 November 1, 2003
------------------- -----------------
Cash $ 176,947 $ 158,217
Restricted Cash 3,392,151 1,304,507
------------------- -----------------
Total Cash $ 3,569,098 $ 1,462,724
=================== =================
The cash balance per this schedule is as follows:
Total Cash per Above $ (3,305,775) $ (4,374,062)
Less: Amount
Reported as
Line of Credit (6,874,873) (5,836,786)
------------------- -----------------
Cash Balance $ 3,569,098 $ 1,462,724
=================== =================
CASE NAME: Ashland Steel Liquidating Company COMPARATIVE BALANCE SHEET FORM OPR - 1
fka Kentucky Electric Steel, Inc.
REV 2/90
CASE NUMBER: 03-10078 MONTH ENDED: OCTOBER
February 5, March 1, March 29 , May 3, May 31,
2003 2003 2003 2003 2003
ASSETS
CURRENT ASSETS
Other Negotiable instruments (i.e.. CD's T-Bills) $ - $ - $ -
----------- ----------- ----------- ----------- -----------
Accounts receivable (See OPR - 3) 9,734,029 8,478,039 5,972,687 2,842,297 2,149,555
----------- ----------- ----------- ----------- -----------
Less allowance for doubtful accounts - - - - -
----------- ----------- ----------- ----------- -----------
Inventory, at lower of cost or market 10,346,543 7,815,001 2,462,067 - -
----------- ----------- ----------- ----------- -----------
Prepaid expenses and deposits 2,813,034 2,462,924 1,881,542 1,811,666 1,592,967
----------- ----------- ----------- ----------- -----------
Investments - - - - -
----------- ----------- ----------- ----------- -----------
Other: Operating Supplies, rolls, molds, etc 4,203,699 4,203,699 4,203,699 4,203,699 4,203,699
----------- ----------- ----------- ----------- -----------
Cash and Restricted cash 1,092,575 1,931,782 1,291,023 1,433,979 1,475,449
----------- ----------- ----------- ----------- -----------
Other Assets 64,794 61,294 60,935 50,953 49,510
----------- ----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS $28,254,674 $24,952,739 $15,871,953 $10,342,594 $ 9,471,180
----------- ----------- ----------- ----------- -----------
PROPERTY PLANT AND EQUIPMENT,
AT COST $ - $ - $ - $ - $ -
----------- ----------- ----------- ----------- -----------
Less accumulated depreciation - - - - -
----------- ----------- ----------- ----------- -----------
NET PROPERTY PLANT AND EQUIPMENT $19,452,338 $19,452,338 $19,452,338 $19,452,338 $19,452,338
----------- ----------- ----------- ----------- -----------
Other non current assets 307,958 304,232 260,771 260,771 260,771
----------- ----------- ----------- ----------- -----------
Deferred finance charges 558,815 - - - -
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS $48,573,785 $44,709,309 $35,585,062 $30,055,703 $29,184,289
----------- ----------- ----------- ----------- -----------
June 28, August 2, August 30, September 27, November 1,
2003 2003 2003 2003 2003
ASSETS
CURRENT ASSETS
Other Negotiable instruments (i.e.. CD's T-Bills)
----------- ----------- ----------- ----------- -----------
Accounts receivable (See OPR - 3) 1,866,505 169,979 73,728 58,513 53,807
----------- ----------- ----------- ----------- -----------
Less allowance for doubtful accounts - - - - -
----------- ----------- ----------- ----------- -----------
Inventory, at lower of cost or market - - - - -
----------- ----------- ----------- ----------- -----------
Prepaid expenses and deposits 1,320,071 1,045,001 560,434 502,884 482,884
----------- ----------- ----------- ----------- -----------
Investments - - - - -
----------- ----------- ----------- ----------- -----------
Other: Operating Supplies, rolls, molds, etc 4,203,699 4,203,699 4,203,699 - -
----------- ----------- ----------- ----------- -----------
Cash and Restricted cash 1,195,760 1,063,461 839,488 3,569,098 1,462,724
----------- ----------- ----------- ----------- -----------
Other Assets 49,510 53,411 38,428 39,789 39,789
----------- ----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS $ 8,635,545 $ 6,535,551 $ 5,715,777 $ 4,170,284 $ 2,039,204
----------- ----------- ----------- ----------- -----------
PROPERTY PLANT AND EQUIPMENT,
AT COST $ - $ - $ - $ - $ -
----------- ----------- ----------- ----------- -----------
Less accumulated depreciation - - - - -
----------- ----------- ----------- ----------- -----------
NET PROPERTY PLANT AND EQUIPMENT $19,354,479 $19,354,479 $19,354,479 $ - $ -
----------- ----------- ----------- ----------- -----------
Other non current assets 260,771 260,771 260,771 260,771 260,771
----------- ----------- ----------- ----------- -----------
Deferred finance charges - - - - -
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS $28,250,795 $26,150,801 $25,331,027 $ 4,431,055 $ 2,299,975
----------- ----------- ----------- ----------- -----------
* Itemize if value of "Other Assets" exceed 10% of "Total Assets."
FORM OPR - 2
CASE NAME: Ashland Steel Liquidating Company COMPARATIVE BALANCE SHEET REV 2/90
fka Kentucky Electric Steel, Inc.
CASE NUMBER: 03-10078 MONTH ENDED: OCTOBER
February 5, March 1, March 29, May 3, May 31,
2003 2003 2003 2003 2003
LIABILITIES
POST PETITION LIABILITIES $ 204,746 $ 702,564 $ 947,405 $ 1,111,679 $ 1,303,592
------------ ------------ ------------ ------------ ------------
PRE PETITION LIABILITIES
------------ ------------ ------------ ------------ ------------
Priority Debt 2,629,975 2,592,107 2,098,489 2,068,489 2,068,489
------------ ------------ ------------ ------------ ------------
Secured Debt 30,530,705 27,658,910 23,544,655 19,613,859 19,021,483
------------ ------------ ------------ ------------ ------------
Unsecured Debt 9,426,688 9,433,310 8,691,905 8,301,017 8,301,017
------------ ------------ ------------ ------------ ------------
TOTAL PRE PETITION LIABILITIES $ 42,587,368 $ 39,684,328 $ 34,335,049 $ 29,983,364 $ 29,390,988
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES $ 42,792,114 $ 40,386,892 $ 35,282,454 $ 31,095,043 $ 30,694,580
------------ ------------ ------------ ------------ ------------
SHAREHOLDERS' EQUITY (DEFICIT)
PREFERRED STOCK $ - $ - $ -
------------ ------------ ------------ ------------ ------------
COMMON STOCK 50,516 50,516 50,516 50,516 50,516
------------ ------------ ------------ ------------ ------------
PAID-IN CAPITAL 15,817,342 15,817,342 15,817,342 15,817,342 15,817,342
------------ ------------ ------------ ------------ ------------
TREASURY STOCK (4,309,397) (4,309,397) (4,309,397) (4,309,397) (4,309,397)
------------ ------------ ------------ ------------ ------------
RETAINED EARNINGS
------------ ------------ ------------ ------------ ------------
Through filing date (5,776,790) (5,776,790) (5,776,790) (5,776,790) (5,776,790)
------------ ------------ ------------ ------------ ------------
Post filing date - (1,459,254) (5,479,063) (6,821,011) (7,291,962)
------------ ------------ ------------ ------------ ------------
TOTAL SHAREHOLDERS' EQUITY $ 5,781,671 $ 4,322,417 $ 302,608 $ (1,039,340) $ (1,510,291)
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 48,573,785 $ 44,709,309 $ 35,585,062 $ 30,055,703 $ 29,184,289
------------ ------------ ------------ ------------ ------------
June 28, August 2, August 30, September 27, November 1,
2003 2003 2003 2003 2003
LIABILITIES
POST PETITION LIABILITIES $ 1,115,613 $ 1,237,138 $ 1,444,903 $ 1,482,928 $ 1,455,189
------------ ------------ ------------ ------------ ------------
PRE PETITION LIABILITIES
------------ ------------ ------------ ------------ ------------
Priority Debt 2,068,489 2,108,489 1,745,606 1,745,606 1,745,606
------------ ------------ ------------ ------------ ------------
Secured Debt 19,032,152 17,593,708 17,576,471 17,634,539 15,422,290
------------ ------------ ------------ ------------ ------------
Unsecured Debt 8,133,037 7,922,222 7,922,222 7,922,222 7,922,222
------------ ------------ ------------ ------------ ------------
TOTAL PRE PETITION LIABILITIES $ 29,233,678 $ 27,624,419 $ 27,244,299 $ 27,302,367 $ 25,090,118
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES $ 30,349,291 $ 28,861,557 $ 28,689,202 $ 28,785,295 $ 26,545,307
------------ ------------ ------------ ------------ ------------
SHAREHOLDERS' EQUITY (DEFICIT)
PREFERRED STOCK
------------ ------------ ------------ ------------ ------------
COMMON STOCK 50,516 50,516 50,516 50,516 50,516
------------ ------------ ------------ ------------ ------------
PAID-IN CAPITAL 15,817,342 15,817,342 15,817,342 15,817,342 15,817,342
------------ ------------ ------------ ------------ ------------
TREASURY STOCK (4,309,397) (4,309,397) (4,309,397) (4,309,397) (4,309,397)
------------ ------------ ------------ ------------ ------------
RETAINED EARNINGS
------------ ------------ ------------ ------------ ------------
Through filing date (5,776,790) (5,776,790) (5,776,790) (5,776,790) (5,776,790)
------------ ------------ ------------ ------------ ------------
Post filing date (7,880,167) (8,492,427) (9,139,846) (30,135,911) (30,027,003)
------------ ------------ ------------ ------------ ------------
TOTAL SHAREHOLDERS' EQUITY $ (2,098,496) $ (2,710,756) $ (3,358,175) $(24,354,240) $(24,245,332)
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 28,250,795 $ 26,150,801 $ 25,331,027 $ 4,431,055 $ 2,299,975
------------ ------------ ------------ ------------ ------------
CASE NAME: Ashland Steel Liquidating Company SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR - 3
fka Kentucky Electric Steel, Inc.
REV 2/90
CASE NUMBER: 03-10078 MONTH ENDED: OCTOBER
(1) (1) (1) (1)
TOTAL CURRENT 1 - 30 DAYS 31 - 60 DAYS OVER 60 DAYS
PAST DUE PAST DUE PAST DUE
DATE OF FILING: FEBRUARY 5, 2003 $ 10,089,029 $ 7,974,031 $ 1,611,266 $ 479,232 $ 24,500
------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (355,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 9,734,029
============
MONTH: FEBRUARY - (March 1) $ 8,848,039 $ 6,254,947 $ 2,046,099 $ 435,313 $ 111,680
--------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (370,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 8,478,039
============
MONTH: MARCH - (March 29) $ 6,357,687 $ 2,637,537 $ 2,788,675 $ 684,222 $ 247,253
--------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (385,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 5,972,687
============
MONTH: April - (May 3) $ 3,227,297 $ 758,907 $ 1,156,614 $ 637,812 $ 673,964
--------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (385,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 2,842,297
============
MONTH: May - (May 31) $ 2,464,555 $ 215,802 $ 98,441 $ 1,176,753 $ 973,560
-------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (315,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 2,149,555
============
MONTH: June - (June 28) $ 2,011,505 $ 22,750 $ - $ 72,901 $ 1,915,853
--------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (145,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 1,866,505
============
MONTH: July - (August 2) $ 214,979 $ - $ - $ - $ 214,979
--------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (45,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 169,979
============
MONTH: August - (August 30) $ 113,728 $ - $ - $ - $ 113,728
--------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (40,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 73,728
============
MONTH: September - (Sept. 27) $ 93,513 $ - $ - $ - $ 93,513
--------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (35,000)
------------ ----------- ----------- ----------- -----------
Net accounts receivable $ 58,513
============
MONTH: October - (Nov. 1) $ 88,807 $ - $ - $ - $ 88,807
--------------------- ------------ ----------- ----------- ----------- -----------
Allowance for doubtful accounts $ (35,000)
============
Net accounts receivable $ 53,807
============
NOTE: Total accounts receivable net of allowance for doubtful accounts shown
here must agree to Form OPR - 1.
(1) The Company sells to customers on various terms including 30 days, 45 days
and 60 days. The aging reports are prepared showing current, 1 - 30 days
past due, 31 - 60 days past due and over 60 days past due.
NAME: Ashland Steel Liquidating Company SUMMARY OF POST PETITION LIABILITIES FORM OPR - 4
fka Kentucky Electric Steel, Inc.
REV 2/90
NUMBER: 03-10078 MONTH ENDED: OCTOBER
DATE DATE TOTAL AMOUNT 0 - 30 31 - 60 61 - 90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
TAXES PAYABLE
Federal Income Tax
-------- ------- ------------------- ----------- ----------- ----------- ----------
FICA - Employer's Share
-------- ------- ------------------- ----------- ----------- ----------- ----------
FICA - Employee's Share
-------- ------- ------------------- ----------- ----------- ----------- ----------
Unemployment Tax
-------- ------- ------------------- ----------- ----------- ----------- ----------
Sales Tax
-------- ------- ------------------- ----------- ----------- ----------- ----------
Property Tax
-------- ------- ------------------- ----------- ----------- ----------- ----------
TOTAL TAXES PAYABLE $ 162,500 $ 162,500 $ - $ - $ -
-------- ------- ------------------- ----------- ----------- ----------- ----------
POSTPETITION SECURED DEBT See attached Exhibit B
-------- ------- ------------------- ----------- ----------- ----------- ----------
POSTPETITION UNSECURED DEBT
-------- ------- ------------------- ----------- ----------- ----------- ----------
ACCRUED INTEREST PAYABLE
-------- ------- ------------------- ----------- ----------- ----------- ----------
TRADE ACCOUNTS PAYABLE & OTHER:
(list separately)
Total Trade & Other Accounts Payable $ 1,292,689 $ 508,525 $ - $ 109,466 $ 674,698
------------------------------------ -------- ------- ------------------- ----------- ----------- ----------- ----------
See attached Exhibit C
------------------------------------ -------- ------- ------------------- ----------- ----------- ----------- ----------
------------------------------------ -------- ------- ------------------- ----------- ----------- ----------- ----------
------------------------------------ -------- ------- ------------------- ----------- ----------- ----------- ----------
------------------------------------ -------- ------- ------------------- ----------- ----------- ----------- ----------
------------------------------------ -------- ------- ------------------- ----------- ----------- ----------- ----------
TOTALS $ 1,455,189 $ 671,025 $ - $ 109,466 $ 674,698
-------- ------- ------------------- ----------- ----------- ----------- -----------
Attach separate page if necessary.
Note: Total postpetition liabilities shown here must agree with the same item
as shown on Form OPR-2.
ASHLAND STEEL LIQUIDATING COMPANY EXHIBIT B
FKA KENTUCKY ELECTRIC STEEL, INC.
SUMMARY OF POST PETITION LIABILITIES - TAXES PAYABLE
NOVEMBER 1, 2003
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
-------- -------- ------- -------- ----- ----- -------
TAXES PAYABLE
Property Tax
2003 Prop. Tax Accrual (7 months) 02/05/03 12/31/03 140,000 140,000 - - -
Kentucky license Tax (7 months) 02/05/03 Various 15,000 15,000 - - -
Deleware Franchise Tax (7 months) 02/05/03 Various 7,500 7,500 - - -
-------- -------- ---------------------
TOTAL TAXES PAYABLE $162,500 $162,500 $ - $ - $ -
======== ======== =====================
POSTPETITION SECURED DEBT - - - - -
POSTPETITION UNSECURED DEBT - - - - -
ACCRUED INTEREST PAYABLE - - - - -
ASHLAND STEEL LIQUIDATING COMPANY EXHIBIT C
FKA KENTUCKY ELECTRIC STEEL, INC.
SUMMARY OF POST PETITION LIABILITIES - TRADE ACCOUNTS PAYABLES AND OTHERS
NOVEMBER 1, 2003
DATE DATE TOTAL 0-30 31-60 61-90 OVER
Accounts Payable INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
- ---------------- -------------- ------------ ------------- ------------ ---------- ----------- -----------
Trade Accounts Payable
Ceridian 10/31/03 11/10/03 50 50 - - -
Bowne 10/28/03 11/07/03 354 354 - - -
Core Risk Services 10/30/03 11/29/03 1,069 1,069 - - -
Earle M Jorgensen Co. 03/21/03 TBD 6,576 6,576 - - -
Ryerson Tull Various TBD 4,170 4,170 - - -
CSX 04/04/03 04/19/03 27,000 - - - 27,000
------------- ------------ ---------- ----------- -----------
TRADE ACCOUNTS PAYABLE $ 39,219 $ 12,219 $ - $ - $ 27,000
------------- ------------ ---------- ----------- -----------
Other
Accrued Professional Fees Various TBD $ 496,306 $ 496,306 $ - $ - $ -
Accrued sales leaseback transaction Various TBD 757,164 - - 109,466 647,698
------------- ------------ ---------- ----------- -----------
OTHER ACCOUNTS PAYABLE $ 1,253,470 $ 496,306 $ - $ 109,466 $ 647,698
------------- ------------ ---------- ----------- -----------
------------- ------------ ---------- ----------- -----------
TOTAL ACCOUNTS PAYABLE $ 1,292,689 $ 508,525 $ - $ 109,466 $ 674,698
------------- ------------ ---------- ----------- -----------
CASE NAME: Ashland Steel Liquidating Company STATEMENT OF INCOME (LOSS) FORM OPR - 5
fka Kentucky Electric Steel, Inc.
REV 2/90
CASE NUMBER: 03-10078 MONTH ENDED: OCTOBER
FEBRUARY MARCH APRIL MAY JUNE
NET REVENUE (INCOME) $ 2,600,739 $ 2,370,145 $ 1,782,455 $ 65,869 $ 32,531
------------ ------------ ------------ ------------ ------------
COST OF GOODS SOLD
Materials - - - - -
------------ ------------ ------------ ------------ ------------
Labor - Direct - - - - -
------------ ------------ ------------ ------------ ------------
Manufacturing Overhead - - - - -
------------ ------------ ------------ ------------ ------------
TOTAL COST OF GOODS SOLD (3,089,476) (6,532,328) (2,521,368) (310,114) (315,408)
------------ ------------ ------------ ------------ ------------
GROSS PROFIT - - - - -
------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES - - - - -
------------ ------------ ------------ ------------ ------------
Selling and Marketing - - - - -
------------ ------------ ------------ ------------ ------------
General and Administrative (370,304) (393,192) (600,050) (226,351) (208,446)
------------ ------------ ------------ ------------ ------------
Other: - - - - -
------------------- ------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES $ (370,304) $ (393,192) $ (600,050) $ (226,351) $ (208,446)
INCOME BEFORE INTEREST, DEPRECIATION
TAXES OR EXTRAORDINARY EXPENSES $ (859,041) $ (4,555,375) $ (1,338,963) $ (470,596) $ (491,323)
------------ ------------ ------------ ------------ ------------
INTEREST EXPENSE (2,060) (2,403) (2,987) (2,403) (2,403)
------------ ------------ ------------ ------------ ------------
MISCELLANEOUS - - 2 2,048 (94,479)
------------ ------------ ------------ ------------ ------------
DEPRECIATION - - - - -
------------ ------------ ------------ ------------ ------------
INCOME TAX EXPENSE (BENEFIT) - - - - -
------------ ------------ ------------ ------------ ------------
LOSS ON SALE OF PLANT - - - - -
------------ ------------ ------------ ------------ ------------
WRITE-OFF OF DEFERRED FINANCING FEE (545,404) - - - -
------------ ------------ ------------ ------------ ------------
WRITE-OFF OF OTHER DEFERRED CHARGES (52,749) - - - -
------------ ------------ ------------ ------------ ------------
EXTRAORDINARY INCOME (EXPENSE)(1) - 537,969 - - -
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) $ (1,459,254) $ (4,019,809) $ (1,341,948) $ (470,951) $ (588,205)
============ ============ ============ ============ ============
FILING
JULY AUGUST SEPTEMBER OCTOBER TO DATE
NET REVENUE (INCOME) $ - $ - $ - $ - $ 6,851,739
------------ ------------ ------------ ------------ ------------
COST OF GOODS SOLD
Materials - - - - -
------------ ------------ ------------ ------------ ------------
Labor - Direct - - - - -
------------ ------------ ------------ ------------ ------------
Manufacturing Overhead - - - - -
------------ ------------ ------------ ------------ ------------
TOTAL COST OF GOODS SOLD (389,439) (395,627) - - (13,553,760)
------------ ------------ ------------ ------------ ------------
GROSS PROFIT - - - - -
------------ ------------ ------------ ------------ ------------
OPERATING EXPENSES - - - - -
------------ ------------ ------------ ------------ ------------
Selling and Marketing - - - - -
------------ ------------ ------------ ------------ ------------
General and Administrative (224,470) (248,071) (88,482) (53,819) (2,413,185)
------------ ------------ ------------ ------------ ------------
Other: ------------------- - - - - -
------------ ------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES $ (224,470) $ (248,071) $ (88,482) $ (53,819) $ (2,413,185)
INCOME BEFORE INTEREST, DEPRECIATION
TAXES OR EXTRAORDINARY EXPENSES $ (613,909) $ (643,698) $ (88,482) $ (53,819) $ (9,115,206)
------------ ------------ ------------ ------------ ------------
INTEREST EXPENSE (3,004) (4,807) - - (20,067)
------------ ------------ ------------ ------------ ------------
MISCELLANEOUS 4,653 1,086 594 162,727 76,631
------------ ------------ ------------ ------------ ------------
DEPRECIATION - - - - -
------------ ------------ ------------ ------------ ------------
INCOME TAX EXPENSE (BENEFIT) - - - - -
------------ ------------ ------------ ------------ ------------
LOSS ON SALE OF PLANT - - (20,908,177) - (20,908,177)
------------ ------------ ------------ ------------ ------------
WRITE-OFF OF DEFERRED FINANCING FEE - - - - (545,404)
------------ ------------ ------------ ------------ ------------
WRITE-OFF OF OTHER DEFERRED CHARGES - - - - (52,749)
------------ ------------ ------------ ------------ ------------
EXTRAORDINARY INCOME (EXPENSE)(1) - - - - 537,969
------------ ------------ ------------ ------------ ------------
NET INCOME (LOSS) $ (612,260) $ (647,419) $(20,996,065) $ 108,908 $(30,027,003)
============ ============ ============ ============ ============
(1) Amount is a non-cash item representing the write-off of unrecognized gain
on sale and leaseback transaction.
CASE NAME: Ashland Steel Liquidating Company STATEMENT OF SOURCES AND USES OF CASH FORM OPR - 6
fka Kentucky Electric Steel, Inc.
REV 2/90
CASE NUMBER: 03-10078 MONTH ENDED: OCTOBER
FEBRUARY MARCH APRIL MAY JUNE
SOURCES OF CASH
Income (Loss) From Operations $ (1,459,254) $ (4,019,809) $ (1,341,948) $ (470,951) $ (588,205)
------------ ------------ ------------ ------------ ------------
Add: Depreciation, Amortization
& Other Non-Cash Items 558,815 (537,969) - - -
------------ ------------ ------------ ------------ ------------
Proceeds From Sale of Plant - - - - -
------------ ------------ ------------ ------------ ------------
CASH GENERATED FROM OPERATIONS (900,439) (4,557,778) (1,341,948) (470,951) (588,205)
------------ ------------ ------------ ------------ ------------
Add: Decrease in Assets:
Accounts Receivable 1,259,490 2,505,711 3,140,372 694,185 283,050
------------ ------------ ------------ ------------ ------------
Inventory 2,531,542 5,352,934 2,462,067 - -
------------ ------------ ------------ ------------ ------------
Prepaid Expenses & Deposits 350,110 581,381 69,875 218,699 272,896
------------ ------------ ------------ ------------ ------------
Property, Plant & Equipment - - - - 97,859
------------ ------------ ------------ ------------ ------------
Other: Change in Other Long-Tem Assets 3,726 43,461 - - -
------------ ------------ ------------ ------------ ------------
Increase in Liabilities:
Pre Petition Liabilities - - - - -
------------ ------------ ------------ ------------ ------------
Post Petition Liabilities 497,818 244,841 164,274 191,913 -
------------ ------------ ------------ ------------ ------------
TOTAL SOURCES OF CASH (A) $ 3,742,247 $ 4,170,550 $ 4,494,641 $ 633,846 $ 65,600
------------ ------------ ------------ ------------ ------------
USES OF CASH
Increase in Assets:
Accounts Receivable $ - $ - $ - $ - $ -
------------ ------------ ------------ ------------ ------------
Inventory - - - - -
------------ ------------ ------------ ------------ ------------
Prepaid Expenses & Deposits - - - - -
------------ ------------ ------------ ------------ ------------
Property, Plant & Equipment - - - - -
------------ ------------ ------------ ------------ ------------
Other accured expenses - - - - -
------------ ------------ ------------ ------------ ------------
Decrease in Liabilities:
Pre Petition Liabilities $ 2,903,040 $ 4,811,310 $ 4,351,685 $ 592,376 $ 157,310
------------ ------------ ------------ ------------ ------------
Post Petition Liabilities - - - - 187,979
------------ ------------ ------------ ------------ ------------
TOTAL USES OF CASH (B) $ 2,903,040 $ 4,811,310 $ 4,351,685 $ 592,376 $ 345,289
------------ ------------ ------------ ------------ ------------
NET SOURCE (USE) OF CASH (A-B=NET) $ 839,207 $ (640,760) $ 142,956 $ 41,470 $ (279,689)
------------ ------------ ------------ ------------ ------------
CASH - BEGINNING BALANCE (See OPR-1) $ 1,092,575 $ 1,931,782 $ 1,291,022 $ 1,433,979 $ 1,475,449
------------ ------------ ------------ ------------ ------------
CASH - ENDING BALANCE (See OPR-1) $ 1,931,782 $ 1,291,022 $ 1,433,979 $ 1,475,449 $ 1,195,760
============ ============ ============ ============ ============
FILING
JULY AUGUST SEPTEMBER OCTOBER TO DATE
SOURCES OF CASH
Income (Loss) From Operations $ (612,260) $ (647,419) $(20,996,065) $ 108,908 $(30,027,003)
------------ ------------ ------------ ------------ ------------
Add: Depreciation, Amortization
& Other Non-Cash Items - - 20,908,177 - 20,929,023
------------ ------------ ------------ ------------ ------------
Proceeds From Sale of Plant - - 2,650,000 - 2,650,000
------------ ------------ ------------ ------------ ------------
CASH GENERATED FROM OPERATIONS (612,260) (647,419) 2,562,112 108,908 (6,447,980)
------------ ------------ ------------ ------------ ------------
Add: Decrease in Assets:
Accounts Receivable 1,692,625 111,234 13,854 4,706 9,705,227
------------ ------------ ------------ ------------ ------------
Inventory - - - - 10,346,543
------------ ------------ ------------ ------------ ------------
Prepaid Expenses & Deposits 275,070 484,567 57,550 20,000 2,330,148
------------ ------------ ------------ ------------ ------------
Property, Plant & Equipment - - - - 97,859
------------ ------------ ------------ ------------ ------------
Other: Change in Other Long-Tem Assets - - - - 47,187
------------ ------------ ------------ ------------ ------------
Increase in Liabilities:
Pre Petition Liabilities - - 58,069 - 58,069
------------ ------------ ------------ ------------ ------------
Post Petition Liabilities 121,525 207,765 38,025 - 1,466,161
------------ ------------ ------------ ------------ ------------
TOTAL SOURCES OF CASH (A) $ 1,476,960 $ 156,147 $ 2,729,610 $ 133,614 $ 17,603,215
------------ ------------ ------------ ------------ ------------
USES OF CASH
Increase in Assets:
Accounts Receivable $ - $ - $ - $ - $ -
------------ ------------ ------------ ------------ ------------
Inventory - - - - -
------------ ------------ ------------ ------------ ------------
Prepaid Expenses & Deposits - - - - -
------------ ------------ ------------ ------------ ------------
Property, Plant & Equipment - - - - -
------------ ------------ ------------ ------------ ------------
Other accured expenses - - - - -
------------ ------------ ------------ ------------ ------------
Decrease in Liabilities:
Pre Petition Liabilities $ 1,609,259 $ 380,120 $ - $ 2,212,249 $ 17,017,349
------------ ------------ ------------ ------------ ------------
Post Petition Liabilities - - - 27,739 215,718
------------ ------------ ------------ ------------ ------------
TOTAL USES OF CASH (B) $ 1,609,259 $ 380,120 $ - $ 2,239,988 $ 17,233,067
------------ ------------ ------------ ------------ ------------
NET SOURCE (USE) OF CASH (A-B=NET) $ (132,299) $ (223,973) $ 2,729,610 $ (2,106,374) $ 370,149
------------ ------------ ------------ ------------ ------------
CASH - BEGINNING BALANCE (See OPR-1) $ 1,195,760 $ 1,063,461 $ 839,488 $ 3,569,098 $ 1,092,575
------------ ------------ ------------ ------------ ------------
CASH - ENDING BALANCE (See OPR-1) $ 1,063,461 $ 839,488 $ 3,569,098 $ 1,462,724 $ 1,462,724
============ ============ ============ ============ ============
(1) Represents loss from sale of substantially all of the assets of the Company
including property, plant and equipment and operating supplies, rolls,
molds, etc.
CASE NAME: Ashland Steel Liquidating Company
fka Kentucky Electric Steel, Inc.
CASE NUMBER: 03-10078
CASH DISBURSEMENT DETAIL
------------------------
Date Payee Amount
------------------- ------------------------------------------------------------- -----------------------
Account #70936836 & 98239
- -------------------------
10/1/2003 Hartford Fire Insurance Company $ 22,975
10/2/2003 National City Bank Line of Credit Fee 299
10/24/2003 Bank Analysis Charges 164
Various FedEx 283
10/30/2003 ADP Investor Communication Services 2,978
-----------------------
$ 26,699
-----------------------
Account 626225676 & 626225668
- -----------------------------
10/2/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 $ 174
10/2/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 1,471
10/2/2003 Transfer 941 P/R Taxes Hourly Deposit # 1 174
10/2/2003 Transfer KIT Withholding 395
10/14/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 85
10/14/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 1,396
10/14/2003 Transfer 941 P/R Taxes Hourly Deposit # 2 85
10/15/2003 Transfer KIT Withholding 339
10/15/2003 Bank Service Charge - September 26
-----------------------
$ 4,144
-----------------------
Account # 39353008
- ------------------
9/30/2003 Salary Payroll $ 4,983
10/10/2003 Kevin Bair 3,938
10/13/2003 Core Risk Services 3,857
10/13/2003 Bowne 601
10/13/2003 Custom Data Services 60
10/13/2003 Ceridian Employer Services 94
10/13/2003 AEP 21
10/13/2003 Alltel 208
10/13/2003 Cannonsburg Water District 188
10/15/2003 Salary Payroll 4,971
10/15/2003 All Seasons Storage 225
10/21/2003 U.S. Trustee 8,000
10/21/2003 AT&T 441
10/21/2003 AT&T 1,651
10/21/2003 AT&T Wireless 183
10/21/2003 Mark Grimm 400
10/21/2003 Metlife 12
10/21/2003 Ceridian Employer Services 137
10/30/2003 Bowne 577
10/31/2003 Salary Payroll 4,041
-----------------------
$ 34,586
-----------------------
-----------------------
TOTAL $ 65,429
=======================
CASE NAME: Ashland Steel Liquidating Company
fka Kentucky Electric Steel, Inc.
CASE NUMBER: 03-10078
CASH RECEIPTS DETAIL
--------------------
Date Payee Amount
--------------------- ----------------------------------------------- ----------------------
Account #754119200
- ------------------
10/21/2003 Aztec Trailer Sales $ 1,569
10/21/2003 PNC Advisors - Electrode Settlement 80,000
10/21/2003 Marsh USA, Inc. - Return Ins. Premium 72,846
10/21/2003 Marsh USA, Inc. - Return Ins. Premium 9,881
10/31/2003 Aztec Trailer Sales 3,137
----------------------
$ 167,433
----------------------
Account #754201618
- ------------------
10/31/2003 Arter & Hadden LLP 3,871
----------------------
----------------------
TOTAL $ 171,304
======================