CONSTAR INTERNATIONAL INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - March 25, 2011

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8-K - FORM 8-K - CONSTAR INTERNATIONAL INCc14632e8vk.htm
EX-99.1 - EXHIBIT 99.1 - CONSTAR INTERNATIONAL INCc14632exv99w1.htm
Exhibit 99.2
MOR-1
Constar U.S. Operations
Condensed Statement of Cash Flows
(In thousands)
(Unaudited)
         
    Month Ended  
    February 28, 2011  
Cash flows from operating activities:
        
Net income (loss)
   $ (2,583 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
        
Depreciation and amortization
     2,533  
Changes in assets and liabilities, net
     (1,485 )
 
      
Net cash provided by operating activities
     (1,535 )
 
      
 
        
Cash flows from investing activities:
        
Purchases of property, plant and equipment
     (481 )
 
      
Net cash used in investing activities
     (481 )
 
      
 
        
Cash flows from financing activities:
        
Net change in debtor-in-possession financing
     9,000  
Change in intercompany loans
     (4,138 )
Cash paid for financing fees
     (300 )
 
      
Cash flows provided by financing activities
     4,562  
 
      
 
        
Effect of exchange rate changes on cash and cash equivalents
     —  
 
      
 
        
Net change in cash and cash equivalents
     2,546  
Cash and cash equivalents at the beginning of period
     14,367  
 
      
 
        
Cash and cash equivalents at the end of period
   $ 16,913  
 
      

 

 

 

MOR-1
Constar U.K. Operations
Condensed Statement of Cash Flows
(In thousands)
(Unaudited)
         
    Month Ended  
    February 28, 2011  
Cash flows from operating activities:
        
Net income (loss)
   $ 204  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
        
Depreciation and amortization
     147  
Changes in assets and liabilities, net
     (3,386 )
 
      
Net cash provided by operating activities
     (3,035 )
 
      
 
        
Cash flows from investing activities:
        
Purchases of property, plant and equipment
     —  
 
      
Net cash used in investing activities
     —  
 
      
 
        
Cash flows from financing activities:
        
Change in intercompany loans
     3,651  
 
      
Cash flows provided by financing activities
     3,651  
 
      
 
        
Effect of exchange rate changes on cash and cash equivalents
     26  
 
      
 
        
Net change in cash and cash equivalents
     642  
Cash and cash equivalents at the beginning of period
     996  
 
      
 
        
Cash and cash equivalents at the end of period
   $ 1,638  
 
      

 

 

 

MOR-1a
Bank Reconciliations
Status of Bank Reconciliations
The undersigned verifies that, to the best of his knowledge, all of the Debtors’ February 28, 2011, bank balances have been reconciled in an accurate and timely manner.
       
By:
  /s/ J. Mark Borseth
     
Name:
  J. Mark Borseth
Title:
  Executive Vice President and
Chief Financial Officer

 

 

 

MOR 1-b
Schedule of Professional Fees Paid
                                                                         
    Period     Amount             Check             Amount Paid     Year-to-Date  
Payee   Covered     Approved     Payor     Number     Date     Fees     Expenses     Fees     Expenses  
 
                                                                        
Drinker, Biddle & Reath LLP
   January 2011   $ 3,100     Constar, Inc.   Wire     2/9/2011     $ 3,100     $ —     $ 3,100     $ —  

 

 

 

MOR-2
Constar U.S. Operations
Condensed Combined Statement of Operations
(In thousands)
(Unaudited)
         
    Month Ended  
    February 28, 2011  
Net sales
   $ 27,154  
Cost of products sold, excluding depreciation
     24,360  
Depreciation and amortization
     2,407  
 
      
Gross profit
     387  
 
      
 
        
Selling and administrative expenses
     1,674  
Research and technology expenses
     237  
Provision for restructuring
     (25 )
Gain on disposal of assets
     —  
 
      
Total operating expenses
     1,886  
 
      
 
        
Operating income (loss)
     (1,499 )
 
        
Interest expense
     (145 )
Interest income — intercompany
     —  
Reorganization items, net
     (1,012 )
Other expense, net
     70  
 
      
Income before income taxes
     (2,586 )
(Provision for) income taxes
     3  
 
      
Net income (loss)
   $ (2,583 )
 
      
Combined statements include Constar International Inc., Constar, Inc., Constar Foreign Holdings, BFF, Inc., and DT, Inc.

 

 

 

MOR-2
Constar International U.K. Limited
Condensed Statement of Operations
(In thousands)
(Unaudited)
         
    Month Ended  
    February 28, 2011  
Net sales
   $ 8,702  
Cost of products sold, excluding depreciation
     8,472  
Depreciation and amortization
     147  
 
      
Gross profit
     83  
 
      
 
        
Selling and administrative expenses
     204  
 
      
Total operating expenses
     204  
 
      
 
        
Operating income (loss)
     (121 )
 
        
Interest expense — intercompany
     (229 )
Other (income) expense, net
     554  
 
      
Income before income taxes
     204  
(Provision for) income taxes
     —  
 
      
Net income (loss)
   $ 204  
 
      
 
        
Exchange rate for the period
     1.5962  

 

 

 

MOR-3
Constar U.S. Operations
Condensed Combined Balance Sheets
(In thousands)
(Unaudited)
                 
    February 28,     January 31,  
    2011     2011  
ASSETS
                
Current Assets:
                
Cash and cash equivalents
   $ 16,913     $ 14,367  
Restricted cash
     2,329       2,329  
Accounts receivable, net
     19,389       19,237  
Intercompany receivables
     34,952       30,814  
Inventories, net
     31,720       26,262  
Prepaid expenses and other current assets
     6,149       5,962  
Assets held for sale
     1,974       1,974  
Deferred tax assets
     2,757       2,717  
 
            
Total current assets
     116,183       103,662  
 
            
Property, plant and equipment, net
     82,521       84,447  
Goodwill
     49,682       49,682  
Intangible assets, net
     21,737       21,863  
Other non-current assets
     3,212       3,187  
 
            
Total assets
   $ 273,335     $ 262,841  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
Short-term debt
   $ 47,000     $ 38,000  
Accounts payable and accrued expenses
     49,336       33,008  
 
            
Total current liabilities
     96,336       71,008  
 
            
Liabilities subject to compromise
     229,448       241,742  
Pension and post-retirement liabilities
     32,746       32,732  
Deferred income taxes
     8,033       7,991  
Other non-current liabilities
     6,360       6,373  
 
            
Total liabilities
     372,923       359,846  
 
            
 
                
Stockholders’ deficit
     (99,588 )     (97,005 )
 
            
Total liabilities and stockholders’ deficit
   $ 273,335     $ 262,841  
 
            
Combined statements include Constar International Inc., Constar, Inc., Constar Foreign Holdings, BFF, Inc., and DT, Inc.

 

 

 

MOR-3
Constar International U.K. Limited
Condensed Balance Sheet
(In thousands)
(Unaudited)
                 
    February 28,     January 31,  
    2011     2011  
ASSETS
                
Current Assets:
                
Cash and cash equivalents
   $ 1,638     $ 996  
Accounts receivable, net
     13,086       9,116  
Inventories, net
     8,311       7,316  
Prepaid expenses and other current assets
     4,185       3,564  
 
            
Total current assets
     27,220       20,992  
 
            
Property, plant and equipment, net
     9,466       9,477  
Other non-current assets
     332       332  
 
            
Total assets
   $ 37,018     $ 30,801  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current Liabilities:
                
 
                
Accounts payable and accrued expenses
     7,059       5,109  
 
            
Total current liabilities
     7,059       5,109  
 
            
Pension liabilities
     2,442       2,407  
Intercompany loans
     44,921       40,603  
Other liabilities
     174       187  
Liabilities subject to compromise
     1,424       1,424  
 
            
Total liabilities
     56,020       49,730  
 
            
 
                
Stockholders’ deficit
     (19,002 )     (18,929 )
 
            
Total liabilities and stockholders’ deficit
   $ 37,018     $ 30,801  
 
            
 
                
Exchange rate
     1.6254       1.5611  

 

 

 

MOR-4
Status of Post-Petition Taxes
The undersigned verifies that, to the best of his knowledge, all undisputed post-petition tax obligations, including but limited to payroll, income, franchise, and other taxes, have been paid by the Debtors to the proper taxing authorities when due.
         
     
By:   /s/ J. Mark Borseth      
Name:   J. Mark Borseth     
Title:   Executive Vice President and
Chief Financial Officer 		    

 

 

 

         
MOR-5
Accounts Receivable Reconciliation and Aging
U.S. Operations
         
    Amount  
Accounts Receivable Reconciliation:
       
Accounts receivable — beginning
   $ 18,680  
Plus: Amounts billed during the period
     27,941  
Less: Amounts collected during the period
     (28,656 )
 
      
Accounts receivable — ending
   $ 17,965  
 
      
 
        
Accounts Receivable Aging:
        
0-30 days old
   $ 14,880  
31-60 days old
     2,325  
61-90 days old
     213  
91+ days old
     547  
 
      
Total accounts receivable
     17,965  
Amount considered uncollectible (bad debt)
     (340 )
 
      
Accounts receivable, net
   $ 17,625  
 
      

 

 

 

MOR-5
Accounts Receivable Reconciliation and Aging
U.K. Operations
         
Accounts Receivable Reconciliation:
        
Accounts receivable — beginning
   $ 8,140  
Plus: Amounts billed during the period
     9,485  
Less: Amounts collected during the period
     (7,234 )
 
      
Accounts receivable — ending
   $ 10,391  
 
      
 
        
Accounts Receivable Aging:
        
0-30 days old
   $ 9,999  
31-60 days old
     380  
61-90 days old
     115  
91+ days old
     (103 )
 
      
Total accounts receivable
     10,391  
Amount considered uncollectible (bad debt)
     (65 )
 
      
Accounts receivable, net
   $ 10,326  
 
      

 

 

 

MOR-5
Debtor Questionnaire
             
        Yes   No
 
            
1
  Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide and explanation.       X
 
            
2
  Have any funds been disbursed from any account other than a debtor in possession account? If yes, provide an explanation below.       X
 
            
3
  Have all postpetition tax returns been timely filed? If no, provide an explanation.   X    
 
            
4
  Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.   X    
 
            
5
  Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened accounts(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.       X

 

 

CONSTAR INTERNATIONAL INC Reports