CONSTAR INTERNATIONAL INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - FORM 8-K - CONSTAR INTERNATIONAL INC	c14632e8vk.htm
EX-99.2 - EXHIBIT 99.2 - CONSTAR INTERNATIONAL INC	c14632exv99w2.htm

Exhibit 99.1

MOR-1
Constar U.S. Operations
Condensed Statement of Cash Flows
(In thousands)
(Unaudited)


	January 11, 2011
	(Petition Date)
	to January 31,
	2011
Cash flows from operating activities:
Net loss	$	(35,753	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		1,773
Write-off deferred financing fees		2,412
Debt accretion		28,664
Changes in assets and liabilities, net		10,177

Net cash provided by operating activities		7,273


Cash flows from investing activities:
Purchases of property, plant and equipment		(451	)
Restricted cash to collateralize letter of credit		(2,329	)

Net cash used in investing activities		(2,780	)


Cash flows from financing activities:
Net change in debtor-in-possession financing		38,000
Repayment of short-term debt		(30,444	)

Cash flows provided by financing activities		7,556


Effect of exchange rate changes on cash and cash equivalents		—


Net change in cash and cash equivalents		12,049
Cash and cash equivalents at the beginning of period		2,318


Cash and cash equivalents at the end of period	$	14,367

MOR-1
Constar U.K. Operations
Condensed Statement of Cash Flows
(In thousands)
(Unaudited)


	January 11, 2011
	(Petition Date)
	to January 31,
	2011
Cash flows from operating activities:
Net income	$	171
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		128
Changes in assets and liabilities, net		(3,082	)

Net cash provided by operating activities		(2,783	)


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		2,651

Cash flows provided by financing activities		2,651


Effect of exchange rate changes on cash and cash equivalents		27


Net change in cash and cash equivalents		(105	)
Cash and cash equivalents at the beginning of period		1,101


Cash and cash equivalents at the end of period	$	996

MOR-1a
Bank Reconciliations

Status of Bank Reconciliations

The undersigned verifies that, to the best of his knowledge, all of the Debtors’ January 31, 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

N/A

January 11, 2011 - January 31, 2011

N/A

—

No payments made to retained professionals during the period

MOR-2

Constar U.S. Operations
Condensed Combined Statement of Operations
(In thousands)
(Unaudited)


	January 11, 2011
	(Petition Date)
	to January 31,
	2011
Net sales	$	20,074
Cost of products sold, excluding depreciation		18,619
Depreciation and amortization		1,690

Gross profit		(235	)


Selling and administrative expenses		942
Research and technology expenses		304
Provision for restructuring		116
Gain on disposal of assets		—

Total operating expenses		1,362


Operating income (loss)		(1,597	)

Interest expense		(3,689	)
Interest income — intercompany		188
Reorganization items, net		(30,547	)
Other expense, net		(111	)

Income before income taxes		(35,756	)
(Provision for) income taxes		3

Net income (loss)	$	(35,753	)

Combined statements include Constar International Inc., Constar, Inc., Constar Foreign Holdings, Inc., BFF, Inc., and DT, Inc.

MOR-2

Constar International U.K. Limited
Condensed Statement of Operations
(In thousands)
(Unaudited)


	January 11, 2011
	(Petition Date)
	to January 31,
	2011
Net sales	$	5,566
Cost of products sold, excluding depreciation		5,540
Depreciation and amortization		128

Gross profit		(102	)


Selling and administrative expenses		122

Total operating expenses		122


Operating income (loss)		(224	)

Interest expense — intercompany		(164	)
Other (income) expense, net		558

Income before income taxes		171
(Provision for) income taxes		—

Net income (loss)	$	171


Exchange rate for the period		1.5462

MOR-3

Constar U.S. Operations
Condensed Combined Balance Sheets
(In thousands)
(Unaudited)


				January 11,
	January 31,			2011
	2011			(Petition Date)
ASSETS
Current Assets:
Cash and cash equivalents	$	14,367		$	2,318
Restricted cash		2,329			—
Accounts receivable, net		19,237			17,520
Intercompany receivables		30,814			31,374
Inventories, net		26,262			22,380
Prepaid expenses and other current assets		5,962			8,211
Assets held for sale		1,974			—
Deferred tax assets		2,717			2,757

Total current assets		103,662			84,560

Property, plant and equipment, net		84,447			85,686
Goodwill		49,682			49,682
Intangible assets, net		21,863			21,946
Other non-current assets		3,187			4,934

Total assets	$	262,841		$	246,808


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term debt	$	38,000		$	30,444
Accounts payable and accrued expenses		33,008			37,726

Total current liabilities		71,008			68,170

Long-term debt		—			191,336
Liabilities subject to compromise		241,742			—
Pension and post-retirement liabilities		32,732			33,380
Deferred income taxes		7,991			8,033
Other non-current liabilities		6,373			6,340

Total liabilities		359,846			307,259


Stockholders’ deficit		(97,005	)		(60,451	)

Total liabilities and stockholders’ deficit	$	262,841		$	246,808

Combined statements include Constar International Inc., Constar, Inc., Constar Foreign Holdings, Inc., BFF, Inc., and DT, Inc.

MOR-3

Constar International U.K. Limited
Condensed Balance Sheet
(In thousands)
(Unaudited)


				January 11,
	January 31,			2011
	2011			(Petition Date)
ASSETS
Current Assets:
Cash and cash equivalents	$	996		$	1,101
Accounts receivable, net		9,116			9,773
Inventories, net		7,316			6,831
Prepaid expenses and other current assets		3,564			1,822

Total current assets		20,992			19,527

Property, plant and equipment, net		9,477			9,379
Other non-current assets		332			328

Total assets	$	30,801		$	29,234


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable and accrued expenses		5,109			8,397

Total current liabilities		5,109			8,397

Pension liabilities		2,407			2,306
Intercompany loans		40,603			37,031
Other liabilities		187			200
Liabilities subject to compromise		1,424			—

Total liabilities		49,730			47,934


Stockholders’ deficit		(18,929	)		(18,700	)

Total liabilities and stockholders’ deficit	$	30,801		$	29,234


Exchange rate		1.5611			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	$	17,353
Plus: Amounts billed during the period		21,200
Less: Amounts collected during the period		(19,873	)

Accounts receivable — ending	$	18,680


Accounts Receivable Aging:
0-30 days old	$	15,719
31-60 days old		2,075
61-90 days old		539
91+ days old		347

Total accounts receivable		18,680
Amount considered uncollectible (bad debt)		(337	)

Accounts receivable, net	$	18,343

MOR-5
Accounts Receivable Reconciliation and Aging
U.K. Operations


Accounts Receivable Reconciliation:
Accounts receivable — beginning	$	8,705
Plus: Amounts billed during the period		6,221
Less: Amounts collected during the period		(6,786	)

Accounts receivable — ending	$	8,140


Accounts Receivable Aging:
0-30 days old	$	7,776
31-60 days old		450
61-90 days old		(19	)
91+ days old		(67	)

Total accounts receivable		8,140
Amount considered uncollectible (bad debt)		(62	)

Accounts receivable, net	$	8,077

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 - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - March 25, 2011

Attached files

CONSTAR INTERNATIONAL INC Reports