SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 31, 1999
American Rice, Inc.
(Exact name of registrant as specified in its charter)
Texas
(State or other jurisdiction of incorporation)
0-17039 76-0231626
(Commission File Number) (I.R.S. Employer
Identification No.)
411 N. Sam Houston Parkway E.
Houston, Texas 77060
(Address of Principal (Zip Code)
Executive Offices)
(281) 272-8800
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report
<PAGE>
Item 4. Changes in Registrant's Certifying Accountant
Resignation of Deloitte & Touche LLP
- ------------------------------------
American Rice, Inc. ("ARI" or the "Company") has been advised that Deloitte &
Touche LLP ("Deloitte") has resigned as independent accountants and auditors
for the Company. Deloitte's resignation was not a result of any
recommendation of the Company's board of directors or any board committee. In
a motion to withdraw as professionals for the Company in ARI's Chapter 11
proceedings, Deloitte advised the bankruptcy court that it believed its
resignation was in the best interests of the Company and was undertaken to
avoid the possibility that certain class action litigation in which Deloitte
is a named defendant might affect the Company's reorganization efforts. As
previously reported on Form 8-K, the lawsuit was brought by four current and
former shareholders of ERLY Industries Inc. (the Company's parent company
"ERLY") against certain officers and directors of ERLY and also Deloitte.
Deloitte's motion to withdraw as a professional service provider to the
Company was approved on April 19, 1999 by the United States Bankruptcy Court
of the Southern District of Texas, Corpus Christi Division.
The Company's financial statements for its March 31, 1997 fiscal year-end
were audited by Deloitte whose report thereon was dated June 20, 1997. The
report by Deloitte on the 1997 financial statements of the Company contained
no adverse opinion or disclaimer of opinion, nor was it qualified or modified
as to uncertainty, audit scope, or accounting principles. Deloitte was
engaged to audit the March 31, 1998 financial statements of the Company. On
June 30, 1998, Deloitte communicated to the Company's management and its
audit committee on the status of such audit. At that time, Deloitte
communicated a summary of documentation and other information it needed to
receive from the Company or others and also stated there were audit
procedures remaining to be performed before the 1998 audit could be
completed. On August 11, 1998, ARI filed for bankruptcy protection under
Chapter 11 of the Bankruptcy Code. On October 6, 1998 the Court approved the
Company's application to employ Deloitte as accountants and auditors.
Subsequently, the Company advised Deloitte that due to the bankruptcy the
Company did not believe it was necessary for the audit to be completed and
therefore Deloitte did not complete the audit. Deloitte was not engaged to
audit the Company's financial statements for the year ended March 31, 1999.
During the Company's two most recent fiscal years and through April 19, 1999,
there were no disagreements with Deloitte on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure, which disagreements (if not resolved to Deloitte's satisfaction)
would have caused Deloitte to make reference to the subject matter or matters
of the disagreement in connection with its report.
A letter from Deloitte agreeing with the forgoing disclosures is filed as an
exhibit hereto.
<PAGE>
Item 5 - Other Events
Reorganization Plan Filed
- -------------------------
American Rice, Inc. issued a press release on April 12, 1999 stated it had
filed a reorganization plan with the Bankruptcy Court of the Southern
District of Texas pursuant to its chapter 11 proceesings. The information
contained in such press release is attached hereto as Exhibit 99.
Monthly Operating Reports filed with United States Trustee
- ----------------------------------------------------------
As previously reported on Form 8-K, on August 11, 1998 American Rice, Inc.
(the "Company") filed a voluntary petition for reorganization under Chapter
11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the
Southern District of Texas, Corpus Christi Division. Pursuant to Federal Rule
of Bankruptcy Procedure 2015 and the United States Trustee's Operating
Guidelines and Reporting Requirements for Chapter 11 cases, the Company must
file a Monthly Operating Report ("MOR") with the Office of the United States
Trustee. The MOR covering the period from inception of the bankruptcy through
March 31, 1999 was filed with the Office of the United States Trustee on
April 26, 1999. A copy of this MOR is attached hereto as Exhibit 99 and is
incorporated herein by reference.
Item 7. Financial Statement and Exhibits
(c) Exhibits
Exhibit 16.1 - Letter from Deloitte & Touche LLP regarding change in
certifying accountant.
Exhibit 99 - Press Release - Reorganization Plan
Exhibit 99.1 - Monthly Operating Report
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: April 26, 1999 American Rice, Inc.
--------------------
(Registrant)
By: /s/ Joseph E. Westover
----------------------
Joseph E. Westover
Vice President and
Controller
Deloitte & Touche LLP
Suite 2300
333 Clay Street
Houston, Texas 77002-4196
April 26, 1999
Securities and Exchange Commission
Mail Stop 9-5
450 Fifth Street, N.W.
Washington, D.C. 20549
Ladies and Gentlemen:
We have read and agree with the comments in Item 4 of American Rice,
Inc.'s Form 8-K dated April 26, 1999.
Yours truly,
/s/ Deloitte and Touche LLP
Deloitte & Touche LLP
For Further Information, contact:
Douglas A. Murphy
Chief Executive Officer
or FOR IMMEDIATE RELEASE
Ted Stenger
Interim Chief Operating Officer
(281) 272-8800
AMERICAN RICE, INC. FILES
CHAPTER 11 REORGANIZATION PLAN
HOUSTON, TEXAS, April 12, 1999 --- American Rice, Inc. ("ARI" or the "Company")
announced today it had filed a Reorganization Plan and Disclosure Statement
with the Federal Bankruptcy Court of the Southern District of Texas last
Thursday, April 8th.
ARI commenced its Chapter 11 reorganization last August, citing losses and
excessive capital needs of it's Olive division headquartered in California,
and other non-recurring problems. By the end of October, the Company had
completed the majority of planned divestments of non-core businesses and in
recent months has produced consistent earnings from its continuing rice
business.
Implementation of the Reorganization Plan is contingent upon obtaining
financing, acceptance by ARI's creditors, and confirmation by the Bankruptcy
Court. A Bankruptcy Court hearing on the Reorganization Plan has been
scheduled for Tuesday, May 3rd.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995: Any statements set forth above that are not historical facts are
forward-looking statements that involve risks and uncertainties that could
cause actual results to differ materially from those in the forward-looking
statements. Potential risks and uncertainties include but are not limited to
such factors as product demand and development, ability to maintain customer
relationships, technological advancements, impact of competitive products and
pricing, growth in targeted markets, risks of foreign operations, and other
information detailed from time to time in the Company's Securities and Exchange
Commission filings.
CASE NAME: AMERICAN RICE, INC. UNITED STATES BANKRUPTCY COURT
CASE NUMBER: 98-21254-C-11 (RSS) SOUTHERN DISTRICT OF TEXAS
PETITION FILING DATE: AUGUST 11, 1998 CORPUS CHRISTI DIVISION
MONTHLY OPERATING REPORT SUMMARY FOR MONTH ENDING MARCH 31, 1999
<TABLE>
<CAPTION>
($ Thousands)
MONTH (1) Sept. 30 (2) Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES (MOR-6) $36,694 $25,182 $18,450 $20,992 $16,343 $25,024 $19,633
INCOME (LOSS) BEFORE INT, DEPREC./TAX (26) (390) 627 1,089 993 741 660
NET INCOME (LOSS) (MOR-6) (3) (2,455) (2,461) (835) (330) (293) (458) (13,025)
PAYMENTS TO INSIDERS (MOR-9) 390 293 256 220 214 227 183
PAYMENTS TO PROFESSIONALS (MOR-9) 98 174 65 532 105 825 428
TOTAL DISBURSEMENTS (MOR-8) 49,935 43,904 51,265 42,322 23,704 40,254 40,189
</TABLE>
REQUIRED INSURANCE MAINTAINED
AS OF SIGNATURE DATE EXP.
DATE
CASUALTY YES(X) NO( ) 12/15/99
LIABILITY YES(X) NO( ) 11/18/99
VEHICLE YES(X) NO( ) 11/18/99
WORKERS YES(X) NO( ) 2/1/00
OTHER YES(X) NO( ) 11/18/99
Are all accounts receivable being collected within terms? No.
Are all post-petition liabilities, including taxes, being paid
within terms ? Yes.
Have any pre-petition liabilities been paid? Yes.
If so, describe. Court authorized payments to customers,
processor liens, non-debtor subsidiaries to extent of proceeds.
Are all funds received being deposited into DIP bank account? Yes.
Were any assets disposed of outside of the normal course of
business ? No. If so, describe.
Are all U. S. Trustee quarterly fee payments current? Yes.
What is the status of your Plan of Reorganization? In process.
I certify under penalty of perjury that the following complete
Monthly Operating Report (MOR), consisting of MOR-1 through
MOR-9 plus attachments, is true and correct.
SIGNED: /s/ Joseph E. Westover
TITLE: Vice-President
MOR-1 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS
($ Thousands) Filing Date
MONTH Aug. 11 (1) Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash $913 $1,071 $216 $795 $541 $2,402 $4,291 $1,544
Accounts receivable, net (MOR-5) 33,914 39,725 34,456 33,667 28,317 33,173 28,843 25,257
Inventory: lower of cost or market 67,692 63,005 28,561 30,255 33,151 29,903 25,171 29,857
Prepaid expenses 3,603 3,468 1,727 1,595 2,612 2,468 1,704 1,958
Investments - - - - - - - -
Other - - 1,000 1,000 1,000 1,000 1,000 1,000
TOTAL CURRENT ASSETS 106,122 107,269 65,960 67,312 65,621 68,946 61,009 59,616
PROPERTY, PLANT, & EQUIPMENT @ COST 66,866 67,072 56,405 56,405 56,409 56,564 56,580 56,501
Less accumulated depreciation (27,631) (28,081) (26,768) (26,965) (27,227) (27,438) (27,607) (27,925)
NET BOOK VALUE OF PP&E 39,235 38,991 29,637 29,440 29,182 29,126 28,973 28,576
OTHER ASSETS
TAX DEPOSITS - - - - - - - -
INVESTMENTS IN SUBS (2) (2,472) (2,015) (2,225) (2,490) (2,491) (5,599) (5,431) (5,384)
OTHER INVESTMENTS 1,134 1,175 698 698 698 - - -
TRADEMARKS 11,847 11,801 11,416 11,387 11,361 11,329 11,300 11,160
RECEIVABLE FROM ERLY INDUSTRIES (3) 9,738 10,054 9,935 9,935 9,935 9,935 9,935 2,700
OTHER 1,708 1,666 689 689 689 571 1,173 960
TOTAL OTHER ASSETS 21,955 22,681 20,513 20,219 20,192 16,236 16,977 9,436
TOTAL ASSETS $167,312 $168,941 $116,110 $116,971 $114,995 $114,308 $106,959 $97,628
</TABLE>
MOR-2 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS
($ Thousands) Filing Date
MONTH Aug. 11 (1) Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES AND OWNER'S EQUITY
LIABILITIES
POST PETITION LIABILITIES (MOR-4,5) - $28,703 $53,540 $57,926 $59,457 $59,140 $54,893 $59,384
PRE-PETITION LIABILITIES:
Notes payable - secured 192,900 165,454 114,545 112,652 112,652 111,666 111,666 111,666
Priority debt 448 448 448 448 448 448 448 448
Federal income tax - - - - - - - -
FICA / withholding - - - - - - - -
Unsecured debt 30,157 32,774 28,013 26,253 26,803 26,803 27,019 26,114
Other (2) 27,261 27,261 7,687 8,670 4,943 5,852 2,992 3,100
TOTAL PRE-PETITION LIABILITIES 250,766 225,937 150,693 148,023 144,846 144,769 142,125 141,328
TOTAL LIABILITIES 250,766 254,640 204,233 205,949 204,303 203,909 197,018 200,712
OWNER'S EQUITY (DEFICIT)
PREFERRED STOCK 3,878 3,878 3,878 3,878 3,878 3,878 3,878 3,878
COMMON STOCK 2,444 2,444 2,444 2,444 2,444 2,444 2,444 2,444
ADDITIONAL PAID-IN CAPITAL 25,286 25,286 25,286 25,286 25,286 25,286 25,286 25,286
RETAINED EARNINGS: post filing date - (2,455) (4,916) (5,751) (6,081) (6,374) (6,832) (19,857)
RETAINED EARNINGS: filing date (112,685) (112,685) (112,685) (112,685) (112,685) (112,685) (112,685) (112,685)
FOREIGN CURRENCY TRANS. ADJS. (2,377) (2,167) (2,130) (2,150) (2,150) (2,150) (2,150) (2,150)
TOTAL OWNER'S EQUITY (83,454) (85,699) (88,123) (88,978) (89,308) (89,601) (90,059) (103,084)
TOTAL LIABILITIES AND EQUITY $167,312 $168,941 $116,110 $116,971 $114,995 $114,308 $106,959 $97,628
</TABLE>
MOR-3 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
SCHEDULE OF POST-PETITION LIABILITIES
($ Thousands)
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31
<S> <C> <C> <C> <C> <C> <C> <C>
TRADE ACCOUNTS PAYABLE $482 $584 $2,484 $2,332 $2,500 $1,788 $2,071
TAX PAYABLE
Federal payroll taxes - - - - - - -
State payroll taxes - - - - - - -
Ad valorem taxes - - 107 147 176 176 111
other - - - - - - -
TOTAL TAXES PAYABLE - - 107 147 176 176 111
SECURED DEBT POST PETITION 21,950 42,622 45,222 48,133 52,000 45,700 46,000
ACCRUED INTEREST PAYABLE 630 579 426 505 449 372 419
PROFESSIONAL FEES 1,483 1,515 1,640 1,990 2,462 2,219 1,895
OTHER ACCRUED LIABILITIES
Growers 448 1,871 1,696 1,967 559 144 1,336
Other (1) 3,710 6,369 6,351 4,383 994 4,494 7,552
TOTAL POST-PETITION LIABILITIES (MOR-3) $28,703 $53,540 $57,926 $59,457 $59,140 $54,893 $59,384
</TABLE>
MOR-4 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
POST-PETITION TRADE ACCOUNTS AND TAXES PAYABLE
MARCH, 1999
($ Thousands)
TRADE FEDERAL STATE AD
DAYS TOTAL ACCTS TAXES TAXES VALOREM OTHER
0-30 $58,242 $1,118 - - $112 $57,012
31-60 427 427 - - - -
61-90 104 104 - - - -
91+ 611 611 - - - -
TOTAL (MOR-3) $59,384 $2,260 - - $112 $57,012
<TABLE>
<CAPTION>
AGING OF ACCOUNTS RECEIVABLE
<S> <C> <C> <C> <C> <C> <C> <C>
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31
0-30 $35,790 $27,852 $29,202 $21,646 $27,876 $24,375 $18,530
31-60 1,745 1,679 2,869 4,019 1,450 2,190 6,316
61-90 910 798 316 1,586 2,514 1,094 263
91+ 1,280 4,127 1,280 1,066 1,333 1,184 148
TOTAL (MOR- $39,725 $34,456 $33,667 $28,317 $33,173 $28,843 $25,257
</TABLE>
MOR-5 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
STATEMENT OF INCOME (LOSS)
($ Thousands) FILING
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31 TO DATE
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES $36,694 $25,182 $18,450 $20,992 $16,343 $25,024 $19,633 $162,318
COST OF SALES 31,899 21,672 16,844 18,245 14,244 22,607 17,104 142,615
GROSS PROFIT 4,795 3,510 1,606 2,747 2,099 2,417 2,529 19,703
OPERATING EXPENSES
Sales, general and administrative 4,391 3,609 766 1,438 892 1,449 1,686 14,231
Insider's compensation 390 293 256 220 214 227 183 1,783
Professional fees - - - - - - - -
Other - - - - - - - -
TOTAL OPERATING EXPENSES 4,781 3,902 1,022 1,658 1,106 1,676 1,869 16,014
INCOME BEFORE INT, DEPREC./TAX (MOR-1) 14 (392) 584 1,089 993 741 660 3,689
INTEREST EXPENSE 1,130 864 421 504 423 367 758 4,467
DEPRECIATION 490 344 226 288 247 247 484 2,326
OTHER (INCOME) EXPENSE 12 10 6 15 7 5 233 288
INTEREST IN (EARNINGS) LOSSES / OF SUBS. (246) 247 245 2 12 (168) (47) 45
REORGANIZATION EXPENSE (1) 1,083 604 521 610 597 748 12,257 16,420
OTHER - - - - - - - -
NET INCOME BEFORE TAXES (2,455) (2,461) (835) (330) (293) (458) (13,025) (19,857)
FEDERAL INCOME TAX - - - - - - - -
NET INCOME (LOSS) (MOR-1) ($2,455) ($2,461) ($835) ($330) ($293) ($458) ($13,025) $(19,857)
</TABLE>
MOR-6 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
STATEMENT OF SOURCES AND USES OF CASH
($ Thousands) FILING
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31 TO DATE
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET INCOME (LOSS) (MOR-6) ($2,455) ($2,461) ($835) ($330) ($293) ($458) ($13,025) ($19,857)
ADD: DEPRECIATION & AMORTIZATION 450 (1,313) 197 262 211 169 318 294
CASH GENERATED FROM OPERATIONS (2,005) (3,774) (638) (68) (82) (289) (12,707) (19,563)
ADD: DECREASE IN ASSETS
Accounts receivable - 5,269 789 5,350 - 4,330 3,586 19,324
Inventory 4,687 34,444 - - 3,248 4,732 - 47,111
Prepaid expenses 135 1,741 132 - 144 764 - 2,916
Property, plant, and equipment - 10,667 - - - - 79 10,746
Other (1) 210 2,205 274 27 3,956 - 7,541 14,213
ADD: INCREASE IN LIABILITIES
Post-petition liabilities 28,703 24,837 4,386 1,531 - - 4,491 63,948
Pre-petition liabilities - - - - - - -
TOTAL SOURCES OF CASH (A) 31,730 75,389 4,943 6,840 7,266 9,537 2,990 138,695
USES OF CASH:
INCREASES IN ASSETS
Accounts receivable 5,811 - - - 4,856 - - 10,667
Inventory - - 1,694 2,896 - - 4,686 9,276
Prepaid expenses - - - 1,017 - - 254 1,271
Property, plant, and equipment 206 - - 4 155 16 - 381
Other 726 1,000 - - - 741 - 2,467
DECREASES IN LIABILITIES
Post-petition liabilities - - - - 317 4,247 - 4,564
Pre-petition liabilities 24,829 75,244 2,670 3,177 77 2,644 797 109,438
TOTAL USES OF CASH (B) 31,572 76,244 4,364 7,094 5,405 7,648 5,737 138,064
NET SOURCES (USES) OF CASH (A-B) 158 (855) 579 (254) 1,861 1,889 (2,747) 631
CASH - BEGINNING BALANCE 913 1,071 216 795 541 2,402 4,291 913
CASH - ENDING BALANCE (MOR-2) $1,071 $216 $795 $541 $2,402 $4,291 $1,544 $1,544
</TABLE>
MOR-7 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
CASH ACCOUNT RECONCILIATION
JANUARY, 1999
($ Thousands)
BANK NAME CIBC(1) CIBC (1) Nat'bank So'west 1st Union
ACCOUNT NUMBER 04- 26623 - Bank 2000000 -
40213 1338315 73389 328170 371753
ACCOUNT TYPE Lockbox Operating Operating Lockbox Operating
<S> <C> <C> <C> <C> <C>
BANK BALANCE $16 $28 $68 $195 $113
DEPOSITS IN TRANSIT - - - - -
OUTSTANDING CHECKS - - - - -
ADJUSTED BANK BALANCE $16 $28 $68 $195 $113
BEGINNING CASH PER BOOKS $1 $28 $32 $127 $48
RECEIPTS 15 - - 5,623 20,216
TRANSFERS BETWEEN ACCOUNTS - - 550 (5,555) (5,894)
CHECKS / OTHER DISBURSEMENTS(2) - - (514) - (14,257)
ENDING CASH PER BOOKS (MOR-2) $16 $28 $68 $195 $113
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BANK NAME 1st Union 1st Union 1st Union Harris
ACCOUNT NUMBER 207989 - 207992 - 207992- Trust
1226349 19508 19511 173-846-7 Petty
ACCOUNT TYPE Collateral Disbursement Segregated Oper. Cash Adjs(2) Total
<S> <C> <C> <C> <C> <C> <C> <C>
BANK BALANCE $1,072 ($1,152) $424 - $36 $39 $839
DEPOSITS IN TRANSIT - - - - - 705 705
OUTSTANDING CHECKS - - - - - - -
ADJUSTED BANK BALANCE $1,072 ($1,152) $424 - $36 $744 $1,544
BEGINNING CASH PER BOOKS $3,843 ($1,508) $810 $5 $36 $869 $4,291
RECEIPTS 11,505 - - 83 - - 37,442
TRANSFERS BETWEEN ACCOUNTS 5,640 5,309 - (85) - 35 -
CHECKS / OTHER DISBURSEMENTS (19,916) (4,953) (386) (3) - (160) (40,189)
ENDING CASH PER BOOKS (MOR-2) $1,072 ($1,152) $424 - $36 $744 $1,544
</TABLE>
<TABLE>
<CAPTION>
CASH RECEIPTS AND DISBURSEMENTS
MONTH Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31
<S> <C> <C> <C> <C> <C> <C> <C>
BEGINNING CASH $455 $1,071 $216 $795 $541 $2,402 $4,291
TOTAL RECEIPTS 50,551 43,049 51,844 42,068 25,565 42,143 37,442
TOTAL DISBURSEMENTS (MOR-1) (49,935) (43,904) (51,265) (42,322) (23,704) (40,254) (40,189)
ENDING CASH (MOR-2) $1,071 $216 $795 $541 $2,402 $4,291 $1,544
</TABLE>
MOR-8 Footnotes follow MOR-9
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
<TABLE>
<CAPTION>
PAYMENTS TO INSIDERS AND PROFESSIONALS
INSIDERS COMP.
NAME TYPE Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb. 28 Mar. 31
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Bill McFarland Salary $31,333 $18,631 $35,283 - - $54,500 -
Bill McFarland Expenses - 35,425 - 1,266 2,362 14,029 -
C.B. Schultz Salary 16,745 9,956 9,504 9,956 9,504 9,051 10,306
C.B. Schultz Expenses 868 1,016 - 3,044 2,022 638 528
Dan Kelly Salary 15,034 8,939 13,206 26,150 - - -
Dan Kelly Expenses 12,807 8,769 - 4,906 188 - -
David Kay Salary 16,529 9,828 9,381 9,828 9,381 8,935 10,173
David Kay Expenses 5,868 4,699 2,168 2,591 174 1,843 1,579
Doug Murphy Salary 38,807 23,075 22,026 23,075 22,026 20,977 23,885
Doug Murphy Expenses 7,538 1,065 3,014 9,879 5,763 613 857
Gerald Murphy Salary 50,306 29,912 28,552 29,912 28,552 27,192 30,962
Gerald Murphy Expenses 8,578 - - - 1,837 5,603 6,000
Joe Westover Salary 15,667 9,315 8,892 9,315 8,892 8,468 9,642
Joe Westover Expenses 715 125 1,037 - 1,955 - 544
Karen Porter Salary 10,888 6,474 6,179 6,474 6,179 5,885 6,701
Karen Porter Expenses 1,693 6,000 - - - - -
L.M. Pullen Salary 19,116 11,366 24,108 - 33,250 - -
L.M. Pullen Expenses 1,777 4,515 5,780 3,854 925 331 -
Lee Adams Salary 25,872 15,383 14,684 15,231 14,684 13,985 15,923
Lee Adams Expenses 720 10,558 - 1,784 4,677 - 3,559
Ray Koza Salary 13,712 8,153 7,782 8,153 7,782 7,412 8,439
Ray Koza Expenses 1,616 475 5,990 857 2,352 3,139 4,709
Richard McCombs Salary 26,590 24,794 7,187 - - - -
Richard McCombs Expenses 14,368 2,653 - - 1,023 - -
Richard McCombs Diretors Fees - - - - 1,326 - 1,500
Urbain Tran Salary 12,677 7,538 7,195 7,538 7,195 6,852 7,802
Urbain Tran Expenses 7,380 1,645 8,056 13,779 3,237 4,652 520
S.C. Bain, Jr. Directors Fees - - - - 3,109 - 3,688
William H. Burgess Directors Fees - - - - 3,109 - 3,500
411 NSHP LP Office rent 32,845 32,645 36,161 32,645 32,645 32,645 32,645
TOTAL INSIDERS (MOR-1) $390,048 $292,953 $256,185 $220,237 $214,150 $226,751 $183,462
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS COMP.
NAME TYPE Sept. 30 Oct. 31 Nov. 30 Dec. 31 Jan. 31 Feb.28 Mar. 31
<S> <C> <C> <C> <C> <C> <C> <C>
Jordan, Hyden, Womble & Culbreth $37,520 $37,480 - - - - $50,000
Policano & Manzo, L.L.C. 60,093 136,660 64,846 32,338 - - 100,000
Jay Alix and Associates - - - 499,913 - $185,964 186,473
Wachtell Lipton - - - - 105,000 136,941 -
Pachulski, Stang, Zeihl, & Young - - - - - 450,000 56,923
Bracewell & Patterson - - - - - 52,008 -
A.S.K. - - - - - - 35,000
TOTAL PROFESSIONALS (MOR-1) $97,612 $174,139 $64,846 $532,251 $105,000 $824,913 $428,396
</TABLE>
MOR-9 Footnotes follow
<PAGE>
CASE NAME: AMERICAN RICE, INC.
CASE NUMBER: 98-21254-C-11 (RSS)
FOOTNOTES TO MOR SCHEDULES
MOR-1
1. Excepting large transactions which are recorded in the calendar
month in which they occur, the Company follows the practice of
cutting off transactions on a 4-4-5 week basis.
2. Period from August 12, 1998 through September, 1998.
3. March is the last month of ARI's fiscal year. Although certain
year-end adjustments have been made, the reported results are
preliminary, unaudited, and subject to additional adjustments.
See note for MOR-6.
MOR-2
1. Book value.
2. Includes 100% ownership of Rice Corp. of Haiti. However,
documentation of ownership is inconsistent and unclear.
3. Net of reserve for loss of $24,291.
MOR-3
1. Book value.
2. Reserves for losses on Early California Foods, Comet Ventures,
and ARI-Vinafood II.
MOR-4
1. Includes $3 million residual loss reserve for olive divestments.
MOR-6
1. Includes March year-end adjustments of (a) $7,236,000 further
write-down of Erly receivable to 10% or $2,700,000 of $27 million total,
(b) $4,150,000 expense of settling RMTI litigation of which $3,000,000
is pre-petition claim, and (c) $308,000 adjustments to Comet Ventures
and Vietnam reserves.
MOR-7
1. Includes foreign currency translation gain or loss.
MOR-8
1. Canadian Imperial Bank of Canada.
2. Includes cutoff date differences between bank and financials.
See MOR-1 Note 1.
