EX-99.1 2 y07394cexv99w1.txt CONFORMED COPY OF THE OPERATING REPORT UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE IN RE: ROUGE INDUSTRIES, INC., ET AL CASE NO.: 03-13272 DEBTORS REPORTING PERIOD: December, 2004 MONTHLY OPERATING REPORT FILE WITH COURT AND SUBMIT COPY TO UNITED STATES TRUSTEE WITHIN 20 DAYS AFTER END OF MONTH Submit copy of report to any official committee appointed in the case.
DOCUMENT EXPLANATION REQUIRED DOCUMENTS FORM NO. ATTACHED ATTACHED Schedule of Cash Receipts and Disbursements MOR-1 X X Bank Reconciliation (or copies of debtor's bank reconciliations) MOR-1(CONT.) X Copies of bank statements X X Cash disbursements journals Statement of Operations MOR-2 X Balance Sheet MOR-3 X Status of Postpetition Taxes MOR-4 X Copies of IRS Form 6123 or payment receipt Copies of tax returns filed during reporting period Summary of Unpaid Postpetition Debts MOR-4 X Listing of aged accounts payable MOR-5 X Debtor Questionnaire MOR-5 X
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief. /s/ Steven L. Victor --------------------------------------- --------------------- Signature of Debtor Date --------------------------------------- --------------------- Signature of Joint Debtor Date --------------------------------------- --------------------- Signature of Authorized Individual* Date --------------------------------------- ------------------------------------ Printed Name of Authorized Individual Title of Authorized Individual *Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company. FORM MOR (9/99) IN RE: ROUGE INDUSTRIES, INC., ET AL CASE NO.: 03-13272 REPORTING PERIOD: December, 2004 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS Amounts reported should be per the debtor's books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the "CURRENT MONTH - ACTUAL" column must equal the sum of the four bank account columns. The amounts reported in the "PROJECTED" columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CONT.)]
LASALLE BANK ------------------------------------------------------------------------------------ DECEMBER INVESTMENT ACCOUNT INVESTMENT Professional Fee Carve Out ESTATE CHECKING PAYROLL Sale Proceeds 8603339105 5800683731 5800683756 8603330591 TOTAL -------------------------- --------------- ---------- ------------- ------------ BEGINNING CASH $ 2,009,630 $ 26,585 $ 0 $ 97,660,351 $ 99,696,565 CASH - END OF MONTH $ 2,011,286 $ 143,066 $ 47,376 $ 98,527,233 $100,728,961
Notes: Please find the following attached: (i) Bank statement copies for each account listed above (ii) a reconciliation of the Debtor's unrestricted cash balance as of December 31, 2004, and (iii) an excerpt from the Debtors' cash forecast. All Estate funds were transferred from the Comerica bank accounts to newly created LaSalle Bank accounts during the month ended March 31, 2004. The following Comerica accounts were subsequently closed and are no longer being utilized by the Estate: (i) Escrow Account, #1076119823, (ii) Estate Checking, #1850844851 and (iii) Investment Account, #19900683-00. In addition to the Debtors' unrestricted bank accounts as of December 31, 2004, Estate funds are escrowed as follows: (i) $1.2M as cash collateral for outstanding letters of credit, and (ii) $2.3M for the payment of property taxes and mechanics' liens. ROUGE INDUSTRIES, INC. CASE NO.: 03-13272 UNRESTRICTED CASH ACTIVITY - LASALLE BANK ACCOUNTS REPORTING December, 2004 Month ended December 31, 2004 RII - CHECKING ACCOUNT (ACCT. #5800683731) Beginning Balance $ 87,287.34 Plus Receipts Funding from LaSalle Investment Account (#8603330591) 550,000.00 --------------- Subtotal - Receipts 550,000.00 Less Disbursements Clark Hill (32,021.36) State Street Global Advisors (19,331.01) Austin McNichols Insurance (18,437.50) Severstal (17,864.00) Reed Smith (17,250.77) Bankers Trust Company (16,780.25) Frost Brown & Todd (5,000.00) GoldbergKohnBellBlackRosenbloom & Moritz (5,000.00) Manning Ventures, Inc. (5,000.00) ShawGussisFishmanGlantzWolfson&Towbin (5,000.00) Towers Perrin (3,926.00) HCS Resources (3,448.10) DSS Corporation (795.00) Rust Consulting (754.32) Driggers, Schultz, and Herbst (705.30) Social Security Disability Consultants (500.00) Unicare (323.17) US Trustee (250.00) Service Charge (99.03) Service Charge - Reversal 188.34 --------------- Subtotal - Disbursements (152,297.47) --------------- Ending Balance - Bank 484,989.87 Check Float (341,923.91) --------------- Ending Balance - Book $ 143,065.96 =============== RII - INVESTMENT ACCOUNT (ACCT. #8603330591) Beginning Balance $ 97,660,350.52 Plus State of Michigan Letter of Credit 1,500,000.00 Interest 80,752.82 Unicare Refunds 1,106.50 --------------- Subtotal - Receipts 1,581,859.32 Less Morris Nichols Arsht & Tunnel (115,477.08) Estate Checking Account (550,000.00) Payroll Disbursement (15,500.00) Payroll Disbursement (34,000.00) --------------- Subtotal - Disbursements (714,977.08) --------------- Ending Balance $ 98,527,232.76 =============== RII - ESCROW ACCOUNT PROFESSIONAL FEE CARVE OUT (ACCT. # 8603339105) Beginning Balance $ 2,009,629.74 Plus Interest 1,656.02 --------------- Ending Balance $ 2,011,285.76 =============== RII - PAYROLL ACCOUNT (ACCT: #5800683756) Beginning Balance $ - Plus Transfer from SeverStal 11,964.38 Funding from LaSalle Investment Account (#8603330591) 15,500.00 Funding from LaSalle Investment Account (#8603330591) 34,000.00 Less Employee Benefit Distributions (14,088.34) --------------- Ending Balance $ 47,376.04 =============== --------------- ENDING BALANCE - UNRESTRICTED CASH $100,728,960.52 ---------------
All Estate funds were transferred from the Comerica bank accounts to newly created LaSalle Bank accounts during the month ended March 31, 2004. The following Comerica accounts were subsequently closed and are no longer being utilized by the Estate: (i) Escrow Account, #1076119823, (ii) Estate Checking, #1850844851 and (iii) Investment Account, #19900683-00. The Estate opened a new bank account at LaSalle Bank during the month ended December 31, 2004. The new account will be utilized to make employee related disbursements in conjunction with the terms of the Asset Purchase Agreement ("APA"). ROUGE INDUSTRIES, INC. ESTATE CASH FLOW Forecast as of January 21, 2005
FEB - NOV DECEMBER JANUARY FEBRUARY MARCH Actual Actual Forecast Forecast Forecast ------------- ------------ ------------- ------------- ------------- Beginning Estate Cash $ 113,363,867 $ 99,696,654 $ 100,728,960 $ 101,052,709 $ 100,781,167 Satisfaction of Perfected Liens $ - $ - $ - $ - $ - Pre-Closing Expenses Professional Fees 52,906 Taxes - Employment Costs Other Than Taxes: - 105,942 159,952 15,000 15,000 Severance Costs - Other Excluded Liabilities 77,350 14,088 50,000 50,000 ------------- ------------ ------------- ------------- ------------- Subtotal - Pre-Closing Expenses $ 130,256 $ 120,030 $ 209,952 $ 65,000 $ 15,000 Post Closing Administrative Expenses: Professional Fees 3,347,824 $ 147,498 $ 404,058 $ 373,490 $ 368,030 Ordinary Course Professionals 170,217 1,365 22,000 20,000 20,000 Other Payroll / Support (1) 768,470 22,498 100,500 100,500 100,500 Occupancy Costs - 3,500 3,500 3,500 Insurance 748,250 - - - Bank Fees 59,307 7,500 7,500 7,500 Other 123,870 19,831 175,000 25,000 25,000 Post-Close Benefits for Separated Employees (2) 2,602,291 251,950 36,500 35,500 2,500 ------------- ------------ ------------- ------------- ------------- Subtotal - Post-Closing Expenses $ 7,820,228 $ 443,143 $ 749,058 $ 565,490 $ 527,030 ------------- ------------ ------------- ------------- ------------- Total Expenses $ 7,950,484 $ 563,173 $ 959,010 $ 630,490 $ 542,030 Cash Inflows Cancellation of LCs 7,770,000 1,500,000 1,224,000 - - Transfer of Funded Professional Fee Carve Out 2,000,000 Return of Returned Check Reserve 150,000 Settlement of County Property Taxes / Refunds 6,193 300,000 Preference Actions 18,601 Other 3,421,822 13,071 Interest Income (at .7% per year) 553,070 82,409 58,759 58,947 58,789 ------------- ------------ ------------- ------------- ------------- Total Cash Inflows $ 13,919,687 $ 1,595,480 $ 1,282,759 $ 358,947 $ 58,789 Distributions Bank One 8,000,000 Cleveland-Cliffs 11,556,165 Ford - Reclamation Claimants - 757,557 Unsecured Creditors 80,251 ------------- ------------ ------------- ------------- ------------- Total Distributions $ 19,636,416 $ - $ - $ - $ 757,557 ------------- ------------ ------------- ------------- ------------- ENDING ESTATE CASH $ 99,696,654 $100,728,960 $ 101,052,709 $ 100,781,167 $ 99,540,368 MEMO Cumulative Pmt. of Liabilities Assumed by SNA 9,999,925 $ 9,999,925 APRIL MAY JUNE JULY AUGUST Forecast Forecast Forecast Forecast Forecast ------------ ------------ ------------ ------------ ------------ Beginning Estate Cash $ 99,540,368 $ 98,810,996 $ 98,366,306 $ 98,216,506 $ 97,934,279 Satisfaction of Perfected Liens $ - $ - $ - $ - $ - Pre-Closing Expenses Professional Fees Taxes Employment Costs Other Than Taxes: 15,000 10,000 10,000 10,000 - Severance Costs Other Excluded Liabilities ------------ ------------ ------------ ------------ ------------ Subtotal - Pre-Closing Expenses $ 15,000 $ 10,000 $ 10,000 $ 10,000 $ - Post Closing Administrative Expenses: Professional Fees $ 482,150 $ 302,830 $ 40,680 $ 173,020 $ - Ordinary Course Professionals 20,000 20,000 20,000 20,000 20,000 Other Payroll / Support (1) 100,500 100,500 100,500 100,500 100,500 Occupancy Costs 3,500 3,500 3,500 3,500 3,500 Insurance - - - - - Bank Fees 7,500 7,500 7,500 7,500 7,500 Other 25,000 25,000 25,000 25,000 25,000 Post-Close Benefits for Separated Employees (2) 133,788 33,000 - - - ------------ ------------ ------------ ------------ ------------ Subtotal - Post-Closing Expenses $ 772,438 $ 492,330 $ 197,180 $ 329,520 $ 156,500 ------------ ------------ ------------ ------------ ------------ Total Expenses $ 787,438 $ 502,330 $ 207,180 $ 339,520 $ 156,500 Cash Inflows Cancellation of LCs - - - - - Transfer of Funded Professional Fee Carve Out Return of Returned Check Reserve Settlement of County Property Taxes / Refunds Preference Actions Other Interest Income (at .7% per year) 58,065 57,640 57,380 57,293 57,128 ------------ ------------ ------------ ------------ ------------ Total Cash Inflows $ 58,065 $ 57,640 $ 57,380 $ 57,293 $ 57,128 Distributions Bank One Cleveland-Cliffs Ford Reclamation Claimants Unsecured Creditors ------------ ------------ ------------ ------------ ------------ Total Distributions $ - $ - $ - $ - $ - ------------ ------------ ------------ ------------ ------------ ENDING ESTATE CASH $ 98,810,996 $ 98,366,306 $ 98,216,506 $ 97,934,279 $ 97,834,907 MEMO Cumulative Pmt. of Liabilities Assumed by SNA SEPTEMBER OCTOBER NOVEMBER DECEMBER CUMULATIVE Forecast Forecast Forecast Forecast TOTAL ------------ ------------ ------------ ------------ ------------- Beginning Estate Cash $ 97,834,907 $ 97,735,478 $ 97,635,990 $ 97,536,444 $ 113,363,867 Satisfaction of Perfected Liens $ - $ - $ - $ - $ - Pre-Closing Expenses Professional Fees 52,906 Taxes - Employment Costs Other Than Taxes: - - - - 340,894 Severance Costs - Other Excluded Liabilities 191,438 ------------ ------------ ------------ ------------ ------------- Subtotal - Pre-Closing Expenses $ - $ - $ - $ - $ 585,238 Post Closing Administrative Expenses: Professional Fees $ - $ - $ - $ - $ 5,639,580 Ordinary Course Professionals 20,000 20,000 20,000 20,000 413,582 Other Payroll / Support (1) 100,500 100,500 100,500 100,500 1,996,967 Occupancy Costs 3,500 3,500 3,500 3,500 42,000 Insurance - - - - 748,250 Bank Fees 7,500 7,500 7,500 7,500 149,307 Other 25,000 25,000 25,000 25,000 593,701 Post-Close Benefits for Separated Employees (2) - - - - 3,095,530 ------------ ------------ ------------ ------------ ------------- Subtotal - Post-Closing Expenses $ 156,500 $ 156,500 $ 156,500 $ 156,500 $ 12,678,917 ------------ ------------ ------------ ------------ ------------- Total Expenses $ 156,500 $ 156,500 $ 156,500 $ 156,500 $ 13,264,156 Cash Inflows Cancellation of LCs - - - - 10,494,000 Transfer of Funded Professional Fee Carve Out 2,000,000 Return of Returned Check Reserve 150,000 Settlement of County Property Taxes / Refunds 306,193 Preference Actions 18,601 Other 3,434,893 Interest Income (at .7% per year) 57,070 57,012 56,954 56,896 1,327,414 ------------ ------------ ------------ ------------ ------------- Total Cash Inflows $ 57,070 $ 57,012 $ 56,954 $ 56,896 $ 17,731,102 Distributions Bank One 8,000,000 Cleveland-Cliffs 11,556,165 Ford - Reclamation Claimants 757,557 Unsecured Creditors 80,251 ------------ ------------ ------------ ------------ ------------- Total Distributions $ - $ - $ - $ - $ 20,393,973 ------------ ------------ ------------ ------------ ------------- ENDING ESTATE CASH $ 97,735,478 $ 97,635,990 $ 97,536,444 $ 97,436,840 $ 97,436,840 $ 97,436,840 MEMO Cumulative Pmt. of Liabilities Assumed by SNA 9,999,925
Notes (1) Such amounts paid by the Estate and/or assumed by SeverStal, NA may be subject to further negotiations and/or Court approval. (2) Budgeted amounts assume that all separated employees are converted to premium-based plans, and that no excessive pipeline claims are incurred for February or March. IN RE: ROUGE INDUSTRIES, INC., ET AL CASE NO.: 03-13272 REPORTING PERIOD: December, 2004 CONSOLIDATING STATEMENT OF OPERATIONS in $ millions The Statement of Operations is to be prepared on an accrual basis. The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.
TOTAL CUMULATIVE REVENUES RII RSC EVELETH QS STEEL ADJ. FEBRUARY FILING TO DATE ------ ------ ------- -------- ------ -------- -------------- Gross Revenues $0.000 $298.036 Less: Returns and Allowances 0 ------ ------ ------- -------- ------ ------ -------- Net Revenue $0.000 $0.000 $ 0.000 $ 0.000 $0.000 $0.000 $298.036 COST OF GOODS SOLD Beginning Inventory Add: Purchases Add: Cost of Labor Add: Other Costs (attach schedule) Less: Ending Inventory ------ ------ ------- -------- ------ ------ -------- Cost of Goods Sold 0.000 0.000 0.000 0.000 0.000 0.000 252.662 Gross Profit $0.000 $0.000 $ 0.000 $ 0.000 $0.000 $0.000 $ 45.374 OPERATING EXPENSES Advertising Auto and Truck Expense Contributions Employee Benefits Programs Insider Compensation* Insurance 4.053 Management Fees/Bonuses Office Expense Pension & Profit-Sharing Plans Repairs and Maintenance 28.041 Rent and Lease Expense 4.292 Salaries/Commissions/Fees Supplies Taxes - Payroll Taxes - Real Estate 1.663 Taxes - Other Travel and Entertainment Utilities 14.156 Other (attach schedule) 12.726 ------ ------ ------- -------- ------ ------ -------- Total Operating Expenses Before Depreciation 0.000 0.000 0.000 0.000 0.000 0.000 64.994 Depreciation/Depletion/Amortization 6.342 ------ ------ ------- -------- ------ ------ -------- Net Profit (Loss) Before Other Income & Expenses $0.000 $0.000 $ 0.000 $ 0.000 $0.000 $0.000 (25.962) OTHER INCOME AND EXPENSES Other Income (attach schedule) 0.940 Income from Unconsolidated Subsidiaries 1.360 Interest Expense 5.015 Other Expense (attach schedule) 0.164 ------ ------ ------- -------- ------ ------ -------- Net Profit (Loss) Before Reorganization Items $0.000 $0.000 $ 0.000 $ 0.000 $0.000 $0.000 ($ 28.840) REORGANIZATION ITEMS Professional Fees (1) 8.975 Loss from SeverStal Transaction 216.216 U. S. Trustee Quarterly Fees Interest Earned on Accumulated Cash from Chapter 11 (see continuation sheet) Gain (Loss) from Sale of Equipment Other Reorganization Expenses (attach schedule) Total Reorganization Expenses Income Taxes ------ ------ ------- -------- ------ ------ -------- Net Profit (Loss) $0.000 $0.000 $ 0.000 $ 0.000 $0.000 $0.000 ($254.031) ------ --------
*"Insider" is defined in 11 U.S.C. Section 101(31). NOTES (1) Net of pre-petition retainers applied. FORM MOR-2 Subsequent to the execution of the Asset Purchase Agreement on January 30, 2004, the Debtor is no longer operating or generating revenues. Accordingly the Debtor did not prepare an income statement for the month ended February 29, 2004, and does not expect to do so for future months. Please see the attached Estate Cash Flow for further details of the Debtors' operations IN RE: ROUGE INDUSTRIES, INC., ET AL CASE NO.: 03-13272 REPORTING PERIOD: December, 2004 STATEMENT OF OPERATIONS - CONTINUATION SHEET in $ millions CUMULATIVE BREAKDOWN OF "OTHER" CATEGORY DECEMBER, 2004 FILING TO DATE OTHER COSTS OTHER OPERATIONAL EXPENSES OTHER INCOME OTHER EXPENSES OTHER REORGANIZATION EXPENSES REORGANIZATION ITEMS - INTEREST EARNED ON ACCUMULATED CASH FROM CHAPTER 11: Interest earned on cash accumulated during the chapter 11 case, which would not have been earned but for the bankruptcy proceeding, should be reported as a reorganization item. FORM MOR-2 (CONT.) (9/99) Per agreement with the office of the U.S. Trustee, this page left intentionally blank IN RE: ROUGE INDUSTRIES, INC., ET AL CASE NO.: 03-13272 REPORTING PERIOD: December, 2004 CONSOLIDATING BALANCE SHEET in $ millions The Balance Sheet is to be completed on an accrual basis only. Pre-petition liabilities must be classified separately from postpetition obligations.
BOOK VALUE @ ASSETS ROUGE ROUGE STEEL EVELETH 12/31/04 CURRENT ASSETS INDUSTRIES COMPANY TACONITE QS STEEL ADJ. (DEBTORS) -------------- ---------- ----------- -------- -------- ------------ ------------ Unrestricted Cash and Equivalents $ 100.7 $100.7 Restricted Cash and Cash Equivalents 3.5 3.5 Accounts Receivable (Net) 25.3 56.9 11.1 (93.1) 0.2 Notes Receivable 0.0 Inventories 0.0 Prepaid Expenses 0.7 0.7 Professional Retainers 0.0 Other Current Assets (attach schedule) 0.0 ------ ------- ----- ----- ------ ------ TOTAL CURRENT ASSETS $ 25.3 $ 161.9 $ 0.0 $11.1 ($ 93.1) $105.2 PROPERTY AND EQUIPMENT Real Property and Improvements $ 0.0 Machinery and Equipment ("Waste Oxide") 9.0 9.0 Construction in Progress 0.0 Leasehold Improvements 0.0 Vehicles 0.0 Less Accumulated Depreciation (6.0) (6.0) ------ ------- ----- ----- ------ ------ TOTAL PROPERTY & EQUIPMENT $ 0.0 $ 3.0 $ 0.0 $ 0.0 $ 0.0 $ 3.0 OTHER ASSETS Long Term Receivable 0.0 Investment in Unconsolidated Subsidiaries 9.4 2.2 (11.7) 0.0 Pension Related Assets 15.3 15.3 ------ ------- ----- ----- ------ ------ TOTAL OTHER ASSETS $ 0.0 $ 24.7 $ 2.2 $ 0.0 ($ 11.7) $ 15.3 TOTAL ASSETS $ 25.3 $ 189.6 $ 2.2 $11.1 ($104.8) $123.5 LIABILITIES AND OWNER EQUITY BOOK VALUE @ 12/31/04 LIABILITIES NOT SUBJECT TO COMPROMISE (Post-Petition) Accounts Payable $ 0.0 Taxes Payable 1.3 1.3 Wages Payable 0.0 Accrued Vacation 0.0 Secured Debt / Adequate Protection Payments(2) 0.9 0.9 Professional Fees 0.0 Other Postpetition Liabilities (attach schedule) 0.0 ------ ------- ----- ----- ------ ------ TOTAL POSTPETITION LIABILITIES $ 0.0 $ 2.2 $ 0.0 $ 0.0 $ 0.0 $ 2.2 LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition) Secured Debt 75.2 75.2 Priority Debt 9.1 0.2 0.2 9.6 Unsecured Debt 39.0 302.8 0.0 42.7 (93.1) 291.4 ------ ------- ----- ----- ------ ------ TOTAL PRE-PETITION LIABILITIES $ 39.0 $ 387.1 $ 0.3 $43.0 ($ 93.1) $376.2 TOTAL LIABILITIES $ 39.0 $ 389.3 $ 0.3 $43.0 ($ 93.1) $378.4 OWNER EQUITY Capital Stock $ 0.2 $ 0.2 Additional Paid-In Capital 130.3 130.3 Retained Earnings - Pre-Petition (13.6) (59.6) 2.0 8.6 (62.6) Retained Earnings - Post-Petition (0.1) (222.6) (40.5) (11.7) (274.8) Additional Minimum Pension Liability (48.0) (48.0) ------ ------- ----- ----- ------ ------ NET OWNER EQUITY ($ 13.6) ($ 199.6) $ 2.0 ($31.9) ($ 11.7) ($254.9) TOTAL LIABILITIES AND OWNERS' EQUITY $ 25.3 $ 189.6 $ 2.2 $11.1 ($104.8) $123.5 BOOK VALUE @ ASSETS ADJUSTMENTS 12/31/04 CURRENT ASSETS (1) (SNA) ----------- ------------ Unrestricted Cash and Equivalents - $ 100.7 Restricted Cash and Cash Equivalents - 3.5 Accounts Receivable (Net) 0.1 0.3 Notes Receivable - - Inventories - - Prepaid Expenses 0.2 1.0 Professional Retainers - - Other Current Assets (attach schedule) - - ----- ------- TOTAL CURRENT ASSETS 0.4 $ 105.6 PROPERTY AND EQUIPMENT Real Property and Improvements - - Machinery and Equipment ("Waste Oxide") - 9.0 Construction in Progress - - Leasehold Improvements - - Vehicles - - Less Accumulated Depreciation - (6.0) ----- ------- TOTAL PROPERTY & EQUIPMENT $ 0.0 3.0 OTHER ASSETS Long Term Receivable 8.5 8.5 Investment in Unconsolidated Subsidiaries - 0.0 Pension Related Assets - 15.3 ----- ------- TOTAL OTHER ASSETS 8.5 23.8 TOTAL ASSETS 8.9 $132.4 LIABILITIES AND OWNER EQUITY LIABILITIES NOT SUBJECT TO COMPROMISE (Post-Petition) Accounts Payable - $0.0 Taxes Payable - 1.3 Wages Payable - - Accrued Vacation - - Secured Debt / Adequate Protection Payments(2) 3.1 4.0 Professional Fees - - Other Postpetition Liabilities (attach schedule) - - ----- ------- TOTAL POSTPETITION LIABILITIES 3.1 5.3 LIABILITIES SUBJECT TO COMPROMISE (Pre-Petition) Secured Debt - 75.2 Priority Debt (2.8) 6.9 Unsecured Debt 11.3 302.7 ----- ------- TOTAL PRE-PETITION LIABILITIES $ 8.5 $384.7 TOTAL LIABILITIES 11.6 $390.0 OWNER EQUITY Capital Stock - 0.2 Additional Paid-In Capital - 130.3 Retained Earnings - Pre-Petition - (62.6) Retained Earnings - Post-Petition (2.7) (277.5) Additional Minimum Pension Liability - (48.0) ----- ------- NET OWNER EQUITY (2.7) (257.6) TOTAL LIABILITIES AND OWNERS' EQUITY $ 8.9 $132.4
NOTES: $0.0003000 Substantially all of the Debtors' assets were acquired on January 30, 2004 by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement ("APA") The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004. (1) Adjustments reflect the cumulative proposed adjustments that would need to be made to the Debtors' books and records in order to conform them to the accrual-based books and records kept by SeverStal N.A. on behalf of the Estate. (2) Represents accrued interest related to Ford Motor Company's secured claim against the Estate. The Estate reserves the right to dispute the validity of any claim and or security interest brought against the Estate. This accrual does not represent an admission of validity for any claim brought against the Estate. FORM MOR-3 (9/99) IN RE: ROUGE INDUSTRIES, INC., ET AL CASE NO.: 03-13272 REPORTING PERIOD: December, 2004 BALANCE SHEET - CONTINUATION SHEET in $ millions ASSETS DECEMBER, 2004 Other Current Assets Other Assets LIABILITIES AND OWNER EQUITY DECEMBER, 2004 Other Postpetition Liabilities Adjustments to Owner Equity Postpetition Contributions (Distributions) (Draws) Restricted Cash: Cash that is restricted for a specific use and not available to fund operations. Typically, restricted cash is segregated into a separate account, such as an escrow account. FORM MOR-3 (CONT.) (9/99) Per an agreement with the office of the U.S. Trustee, this page left intentionally blank. IN RE: ROUGE INDUSTRIES, INC., ET AL CASE NO.: 03-13272 REPORTING PERIOD: December, 2004 STATUS OF POSTPETITION TAXES The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero. Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes. Attach photocopies of any tax returns filed during the reporting period.
DECEMBER, 2004 ----------------------------------------------------------- BEGINNING AMOUNT ENDING TAX WITHHELD OR AMOUNT DATE CHECK NO. TAX LIABILITY ACCRUED PAID PAID OR EFT LIABILITY FEDERAL ---------- ----------- ------ ---- --------- --------- Withholding 0 0 0 0 FICA-Employee 0 0 0 0 FICA-Employer 0 0 0 0 Unemployment 0 0 0 0 Income 0 0 0 0 ---- ---- ---- ---- Total Federal Taxes $0.0 $0.0 $0.0 $0.0 ---- ---- ---- ---- STATE AND LOCAL Withholding 0 0 0 0 Sales and Use 0 0 0 0 Excise 0 0 0 0 Unemployment 0 0 0 0 Real Property 0 0 0 0 Income and Franchise Personal Property 0 0 0 0 ---- Total State and Local 0.0
TOTAL TAXES SUMMARY OF UNPAID POSTPETITION DEBTS Attach aged listing of accounts payable. NUMBER OF DAYS PAST DUE (@ 12/31/04)
Current 0-30 31-60 61-90 Over 90 Total ------- ---- ----- ----- ------- ----- Accounts Payable Wages Payable Taxes Payable 1.3 1.3 Rent/Leases-Building Rent/Leases-Equipment Secured Debt/Adequate Protection Payments 4.0 4.0 Professional Fees Amounts Due to Insiders* Other Accruals (workers comp, etc.) ------ ----- TOTAL POSTPETITION DEBTS $ 5.3 $ 5.3
EXPLAIN HOW AND WHEN THE DEBTOR INTENDS TO PAY ANY PAST-DUE POSTPETITION DEBTS. *"Insider" is defined in 11 U.S.C. Section 101(31). The Debtors have timely filed returns and made payments for any tax liabilities incurred during the post-petition period with the exception of the Estate's 2003 Federal and State Income Tax Returns which are currently under review by an accounting firm. FORM MOR-4 (9/99) IN RE: ROUGE INDUSTRIES, INC., ET AL CASE NO.: 03-13272 REPORTING PERIOD: December, 2004 ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
ACCOUNTS RECEIVABLE RECONCILIATION 12/31/04 --------- Total Accounts Receivable at the beginning of the reporting period $ - + Amounts reclassed during the period - - Amounts collected during the period - --------- Total Accounts Receivable at the end of the reporting period $ -
ACCOUNTS RECEIVABLE AGING 12/31/04 --------- Unbilled amounts (est.)(1) $ 0.2 0 - 30 days old - 31 - 60 days old - 61 - 90 days old - 91+ days old - --------- Total Accounts Receivable 0.2 Plus: Reserves for Doubtful Accounts - --------- Accounts Receivable (Gross) $ 0.2
DEBTOR QUESTIONNAIRE
MUST BE COMPLETED EACH MONTH YES NO 1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below. X 2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below. X 3. Have all postpetition tax returns been timely filed? If no, provide an explanation below.(2) X 4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below. X
NOTES: 1) Ford Motor Company ("FMC") deducted $192,270.79 from trade payments due to the Estate as a result of legal and professional fees incurred by FMC related to the bankruptcy. The Estate charged this amount back to FMC and contends that this amount is a valid receivable to the Estate. 2) The Estate's Federal and State Income Tax returns are currently under review by an accounting firm. FORM MOR-5 (9/99) LASALLE BANK N.A. 135 South LaSalle Street Chicago. Illinois 60603 Member FDIC (312)904-7272 MONTHLY CLIENT UPDATE 096 Enclosure(s) 19 ROUGE INDUSTRIES, INC Statement Date: 12/31/04 DEBTOR IN POSSESSION -DISBURSING ACCOUNT Page 1 of 1 CASE NO 03-13272 Account Number 5800683731 DSI ATTENTION STEVEN VICTOR 70 W MADISON ST STE 2300 CHICAGO IL 60602-4250 Statement Period: 5800683731 12/01/04 - 12/31/04 Beginning Balance: 87,287.34 Deposits and Additions: 550,188.34 Checks/Debits/Fees: 152,485.81 Ending Balance: 484,989.87 CHECKS
DATE CHEEK # REFERENCE AMOUNT DATE CHECK # REFERENCE AMOUNT 12/02/04 1148 21607330 795.00 12/21/04 1167 51927925 705.30 12/06/04 * 1157 30604963 18,437.50 12/27/04 1168 68021156 5,000.00 12/08/04 * 1159 47021387 950.13 12/22/04 1169 08480774 5,000.00 12/08/04 1160 47022256 17,250.77 12/22/04 1170 38328096 2,497.97 12/06/04 1161 50826718 754.32 12/27/04 1171 68821835 5,000.00 12/09/04 1162 73405772 17,864.00 12/21/04 1172 73909414 5,000.00 12/07/04 1163 62025384 3,926.00 12/23/04 1173 94539639 500.00 12/07/04 1164 72517527 250.00 12/30/04 1174 51026757 19,331.01 12/06/04 1165 48107491 300.00 12/22/04 1175 57410113 23.17 12/22/04 1166 38328100 32,021.36
* Indicates preceding check(s) not processed this statement period (checks could be listed below under Automated Checks). OTHER WITHDRAWALS AND DEPOSITS
DATE DESCRIPTION WITHDRAWALS DEPOSITS 12/13/04 ACCOUNT ANALYSIS FEES 99.03 12/17/04 INTERNAL TRFR CREDIT REF 200,000.00 # 041217003927 12/23/04 INTERNAL TRFR CREDIT 350,000.00 REF # 041223007743 12/27/04 DEPOSIT BY MAIL 188.34 12/29/04 QUALIFIED TERMINAL DOM WIRE 16,780.25 REF # 041229007328
DAILY ACCOUNT SUMMARY
DATE WITHDRAWALS DEPOSITS BALANCE 11/30/04 87,287.34 12/02/04 795.00 86,492.34 12/06/04 19,491.82 67,000.52 12/07/04 4,176,00 62,824.52 12/08/04 18,200,90 44,623.62 12/09/04 17,864.00 26,759.62 12/13/04 99.03 26,660.59 12/17/04 200,000.00 226,660.59 12/21/04 5,705.30 220,955.29 12/22/04 39,542.50 181,412.79 12/23/04 500.00 350,000.00 530,912.79 12/27/04 10,000.00 188.34 521,101.13 12/29/04 16,780.25 504,320.88 12/30/04 19,331.01 484,989.87
IMPORTANT INFORMATION End of Statement LASALLE BANK N.A. 135 South LaSalle Street Chicago, Illinois 60603 Member FDIC (312) 904-7272 MONTHLY CLIENT UPDATE 096 NA Enclosure(s) 0 ROUGE INDUSTRIES INC DIP Statement Date: 12/31/04 DEBTOR IN POSSESSION-PAYROLL ACCOUNT Page 1 of 1 CASE NO 03-13272 Account Number 5800683756 DSI ATTENTION STEVEN VICTOR 70 W MADISON ST STE 2300 CHICAGO IL 60602-3250 5800683756 Statement Period: 12/17/04 - 12/31/01 Beginning Balance: .00 Deposits and Additions: 61,464.38 Checks/Debits/Fees: 14,088.34 Ending Balance: 17,376.04 OTHER WITHDRAWALS AND DEPOSITS
DATE DESCRIPTION WITHDRAWALS DEPOSITS 12/17/04 INTERNAL TRFR CREDIT 11,964.38 REF # 041217009967 12/17/04 INTERNAL TRFR CREDIT 15,500.00 REF # 041217007626 12/17/04 OUTGOING WIRE-TELE NON-REP 14,088.34 REF # 041217011092 12/29/04 INTERNAL TRFR CREDIT 34,000.00 REF # 041229005011
DAILY ACCOUNT SUMMARY
DATE WITHDRAWALS DEPOSITS BALANCE 12/16/04 .00 12/17/04 14,088.34 27,464.38 13,376.04 12/29/04 34,000.00 47,376.04
IMPORTANT INFORMATION End of Statement LASALLE Bank N.A. 135 South LaSalle Street Chicago, Illinois 60603 Member FDIC (312)90-7272 MONTHLY CLIENT UPDATE 096 NA ENCLOSURE(S) 0 ROUGE INDUSTRIES, INC STATEMENT DATE: 12/31/04 DEBTOR IN POSSESSION SALES PROCEEDS ACCT PAGE 1 OF 1 CASE NO 03-13272 ACCOUNT NUMBER 8603330591 DSI ATTENTION STEVEN VICTOR 70 W MADISON ST STE 2300 CHICAGO IL 60602-4250 INSURED MONEY MARKET: 8603330591 Number of Days This Period: 31 Days Beginning Balance: 97,660,350.52 Avg. Available Balance: 97,976,278.75 Deposits and Additions: 1,501,106.50 Interest Earned This Year: 553,341.92 Interest Paid: 80,752.82 Checks/Debits/Fees: 714,977.08 Ending Balance: 98,527,232.76 OTHER WITHDRAWALS AND DEPOSITS
DATE DESCRIPTION WITHDRAWALS DEPOSITS 12/17/04 DEPOSIT 756.50 12/17/04 INTERNAL TRANSFER-TERMINAL 15,500.00 REF # 041217007626 12/17/04 INTERNAL TRANSFER-TERMINAL 200,000.00 REF # 041217003927 12/21/04 WIRE TRANSFER - INCOMING 1,500,000.00 REF # 041221007888 12/23/04 INTERNAL TRANSFER-TERMINAL 350,000.00 REF # 041223007743 12/29/04 INTERNAL TRANSFER-TERMINAL 34,000.00 REF # 041229005011 12/30/04 DEPOSIT 350.00 12/30/04 QUALIFIED TERMINAL DOM WIRE 115,477.08 REF # 041230006799 12/31/04 INTEREST PAID 80,752.82
DAILY ACCOUNT SUMMARY
DATE WITHDRAWALS DEPOSITS BALANCE 11/30/04 97,660,350.52 12/17/04 215,500.00 756.50 97,445,607.02 12/21/04 1,500,000.00 98,945,607.02 12/23/04 350,000.00 98,595.607.02 12/29/04 34,000.00 98,561.607.02 12/30/04 115,477.08 350.00 98,446.479.94 12/31/04 80,752.82 98,527.232.76
IMPORTANT INFORMATION End of Statement LASALLE BANK N. A. 135 South LaSalle Street Chicago Illinois 60603 Member FDIC (312) 904-7272 MONTHLY CLIENT UPDATE 096 NA ENCLOSURE(S) 0 ROUGE INDUSTRIES, INC D-I-P STATEMENT DATE: 12/31/04 PROFESSIONAL FEE CARVE OUT PAGE 1 OF 1 CASE NO 03-1372 DSI ATTENTION STEVEN VICTOR ACCOUNT NUMBER 8603339105 70 W MADISON ST STE 2300 CHICAGO IL 60602-4250 INSURED MONEY MARKET: 8603339105 Number of Days This Period: 31 Days Beginning Balance: 2,009,629.74 Avg. Available Balance: 2,009,629.74 Deposits and Additions: .00 Interest Earned This Year: 11,285.76 Interest Paid: 1,656.02 Checks/Debits/Fees: .00 Ending Balance: 2,011,285.76 OTHER WITHDRAWALS AND DEPOSITS
DATE DESCRIPTION WITHDRAWALS DEPOSITS 12/31/04 INTEREST PAID 1,656.02
DAILY ACCOUNT SUMMARY
DATE WITHDRAWALS DEPOSITS BALANCE 11/30/04 2,009,629.74 12/31/04 1,656.02 2,011,285.76
IMPORTANT INFORMATION End of Statement