AMERICAN RICE INC
8-K, 1999-03-22
GROCERIES & RELATED PRODUCTS
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              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>


Former Officers, Directors, and Auditor of Erly Industries Inc.,
Parent Company of American Rice, Inc., Named in Class Action.
- -------------------------------------------------------------

A class action complaint (the "Complaint") was commenced on February 18, 
1999 in the United States District Court of the Southern District of 
Texas, Civil Action No. H-99-0535, on behalf of all purchasers of 
Erly Industries Inc. ("ERLY") common stock from November 14, 1996 to 
September 28, 1998, inclusive (the "Class Period"). The complaint alleges
that, during the Class Period, certain of Erly's former officers and  
directors (collectively, the "Defendants") violated Sections 10(b) and 20(a)  
of the Securities Exchange Act of 1934 by, among other things,  
intentionally and/or recklessly issuing material misrepresentations 
concerning (1) the financial condition of Erly, (2) the nature and extent  
of litigation against Erly, (3) the effect on Erly and its business of  
the termination of an agreement with a rice processor in Saudi Arabia and  
(4) related party transactions. Some of these claims are also asserted  
against Deloitte & Touche LLP, Erly's outside auditor. The Complaint  
further alleges that the price of Erly common stock was artificially  
inflated throughout the Class Period as a result of these 
misrepresentations, and that the individual Defendants used inside 
information to sell significant amounts of their own personal Erly  
holdings for significant proceeds. Plaintiffs seek to recover damages on  
behalf of all class members. Certain of the Defendants, listed as follows,  
are also directors, officers, and former officers of American Rice, Inc. 
("ARI"). Douglas A. Murphy is a director and is chief executive officer
of ARI. William H. Burgess is a director of ARI. William J. McFarland is 
a former senior vice-president of ARI. Deloitte & Touche LLP, Erly's 
outside auditor, is also ARI's outside auditor.

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 February 
28, 1999 was filed with the Office of the United States Trustee on March 22, 
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 99 - 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: March 22 , 1999                        American Rice, Inc.
                                             --------------------
                                                 (Registrant)

                                      By:  /s/ Joseph E. Westover
                                           ---------------------- 
                                               Joseph E. Westover 
                                               Vice President and
                                                  Controller


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 FEBRUARY 28, 1999
<TABLE>
<CAPTION>
($ Thousands)
MONTH (1)                                  Sept. 30 (2)  Oct. 31    Nov. 30    Dec. 31    Jan. 31    Feb. 28
<S>                                           <C>        <C>        <C>        <C>        <C>        <C>
REVENUES (MOR-6)                               $36,694    $25,182    $18,450    $20,992    $16,343    $25,024
INCOME (LOSS) BEFORE INT, DEPREC./TAX              (26)      (390)       627      1,089        993        741
NET INCOME (LOSS) (MOR-6)                       (2,455)    (2,461)      (835)      (330)      (293)      (458)

PAYMENTS TO INSIDERS (MOR-9)                       390        293        256        220        214        227
PAYMENTS TO PROFESSIONALS (MOR-9)                   98        174         65        532        105        825
TOTAL DISBURSEMENTS (MOR-8)                     49,935     43,904     51,265     42,322     23,704     40,254
</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
<S>                                         <C>         <C>        <C>        <C>        <C>         <C>        <C>      
ASSETS
CURRENT ASSETS
     Cash                                         $913     $1,071       $216       $795       $541     $2,402     $4,291
     Accounts receivable, net (MOR-5)           33,914     39,725     34,456     33,667     28,317     33,173     28,843
     Inventory: lower of cost or market         67,692     63,005     28,561     30,255     33,151     29,903     25,171
     Prepaid expenses                            3,603      3,468      1,727      1,595      2,612      2,468      1,704
     Investments                                   -          -          -          -          -          -          -
     Other                                         -          -        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

PROPERTY, PLANT, & EQUIPMENT @ COST             66,866     67,072     56,405     56,405     56,409     56,564     56,580
     Less accumulated depreciation             (27,631)   (28,081)   (26,768)   (26,965)   (27,227)   (27,438)   (27,607)
     NET BOOK VALUE OF PP&E                     39,235     38,991     29,637     29,440     29,182     29,126     28,973
OTHER ASSETS
     TAX DEPOSITS                                  -          -          -          -          -          -          -
     INVESTMENTS IN SUBS (2)                    (2,472)    (2,015)    (2,225)    (2,490)    (2,491)    (5,599)    (5,431)
     OTHER INVESTMENTS                           1,134      1,175        698        698        698        -          -
     TRADEMARKS                                 11,847     11,801     11,416     11,387     11,361     11,329     11,300
     RECEIVABLE FROM ERLY INDUSTRIES (3)         9,738     10,054      9,935      9,935      9,935      9,935      9,935
     OTHER                                       1,708      1,666        689        689        689        571      1,173
     TOTAL OTHER ASSETS                         21,955     22,681     20,513     20,219     20,192     16,236     16,977

     TOTAL ASSETS                             $167,312   $168,941   $116,110   $116,971   $114,995   $114,308   $106,959
</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
<S>                                          <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
     PRE-PETITION LIABILITIES:
           Notes payable - secured             192,900    165,454    114,545    112,652    112,652   111,666     111,666
           Priority debt                           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
           Other (2)                            27,261     27,261      7,687      8,670      4,943     5,852       2,992
           TOTAL PRE-PETITION LIABILITIES      250,766    225,937    150,693    148,023    144,846   144,769     142,125

           TOTAL LIABILITIES                   250,766    254,640    204,233    205,949    204,303   203,909     197,018
OWNER'S EQUITY (DEFICIT)
     PREFERRED STOCK                             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
     ADDITIONAL PAID-IN CAPITAL                 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)
     RETAINED EARNINGS: filing date           (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)

           TOTAL OWNER'S EQUITY                (83,454)   (85,699)   (88,123)   (88,978)   (89,308)  (89,601)    (90,059)

           TOTAL LIABILITIES AND EQUITY       $167,312   $168,941   $116,110   $116,971   $114,995  $114,308    $106,959
</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
<S>                                           <C>        <C>        <C>        <C>        <C>        <C>
TRADE ACCOUNTS PAYABLE                            $482       $584     $2,484     $2,332     $2,500     $1,788
TAX PAYABLE
     Federal payroll taxes                         -          -          -          -          -          -
     State payroll taxes                           -          -          -          -          -          -
     Ad valorem taxes                              -          -          107        147        176        176
     other                                         -          -          -          -          -          -
     TOTAL TAXES PAYABLE                           -          -          107        147        176        176
SECURED DEBT POST PETITION                      21,950     42,622     45,222     48,133     52,000     45,700
ACCRUED INTEREST PAYABLE                           630        579        426        505        449        372
PROFESSIONAL FEES                                1,483      1,515      1,640      1,990      2,462      2,219
OTHER ACCRUED LIABILITIES
     Growers                                       448      1,871      1,696      1,967        559        144
     Other                                       3,710      6,369      6,351      4,383        994      4,494

TOTAL POST-PETITION LIABILITIES (MOR-3)        $28,703    $53,540    $57,926    $59,457    $59,140    $54,893
</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
FEBRUARY, 1999
($ Thousands)
                        TRADE      FEDERAL     STATE       AD
      DAYS    TOTAL      ACCTS      TAXES      TAXES     VALOREM     OTHER
      0-30    $54,223     $1,118        -          -         $176    $52,929
     31-60         98         98        -          -          -          -
     61-90         30         30        -          -          -          -
      91+         542        542        -          -          -          -

TOTAL (MOR-3) $54,893     $1,788        -          -         $176    $52,929


AGING OF ACCOUNTS RECEIVABLE

     MONTH  Sept. 30    Oct. 31    Nov. 30    Dec. 31    Jan. 31    Feb. 28
      0-30    $35,790    $27,852    $29,202    $21,646    $27,876    $24,375
     31-60      1,745      1,679      2,869      4,019      1,450      2,190
     61-90        910        798        316      1,586      2,514      1,094
      91+       1,280      4,127      1,280      1,066      1,333      1,184

TOTAL (MOR-   $39,725    $34,456    $33,667    $28,317    $33,173    $28,843

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    TO DATE
<S>                                           <C>        <C>        <C>        <C>        <C>       <C>        <C>
REVENUES                                       $36,694    $25,182    $18,450    $20,992    $16,343   $25,024    $142,685   
     COST OF SALES                              31,899     21,672     16,844     18,245     14,244    22,607     125,511
     GROSS PROFIT                                4,795      3,510      1,606      2,747      2,099     2,417      17,174
OPERATING EXPENSES
     Sales, general and administrative           4,391      3,609        766      1,438        892     1,449      12,545
     Insider's compensation                        390        293        256        220        214       227       1,600
     Professional fees                             -          -          -          -          -         -           -
     Other                                         -          -          -          -          -         -           -

     TOTAL OPERATING EXPENSES                    4,781      3,902      1,022      1,658      1,106     1,676      14,145

INCOME BEFORE INT, DEPREC./TAX (MOR-1)              14       (392)       584      1,089        993       741       3,029

INTEREST EXPENSE                                 1,130        864        421        504        423       367       3,709
DEPRECIATION                                       490        344        226        288        247       247       1,842
OTHER (INCOME) EXPENSE                              12         10          6         15          7         5          55
INTEREST IN (EARNINGS) LOSSES / OF SUBS.          (246)       247        245          2         12      (168)         92
REORGANIZATION EXPENSE                           1,083        604        521        610        597       748       4,163
OTHER                                              -          -          -          -          -          -          -

NET INCOME BEFORE TAXES                         (2,455)    (2,461)      (835)      (330)      (293)     (458)     (6,832)
FEDERAL INCOME TAX                                 -          -          -          -          -          -           -

NET INCOME (LOSS) (MOR-1)                      ($2,455)   ($2,461)     ($835)     ($330)     ($293)    ($458)    ($6,832)
</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    TO DATE
<S>                                          <C>         <C>        <C>        <C>        <C>       <C>         <C>
NET INCOME (LOSS) (MOR-6)                      ($2,455)   ($2,461)     ($835)     ($330)    ($293)    ($458)     ($6,832)
ADD: DEPRECIATION & AMORTIZATION                   450     (1,313)       197        262       211       169          (24)
     CASH GENERATED FROM OPERATIONS             (2,005)    (3,774)      (638)       (68)      (82)     (289)      (6,856)
ADD: DECREASE IN ASSETS
     Accounts receivable                           -        5,269        789      5,350        -      4,330       15,738
     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        -          -          -        -         10,667
     Other (1)                                     210      2,205        274         27      3,956      -          6,672
ADD: INCREASE IN LIABILITIES
     Post-petition liabilities                  28,703     24,837      4,386      1,531        -        -         59,457
     Pre-petition liabilities                      -          -          -          -          -        -            -
     TOTAL SOURCES OF CASH (A)                  31,730     75,389      4,943      6,840      7,266    9,537      135,705
USES OF CASH:
INCREASES IN ASSETS
     Accounts receivable                         5,811        -          -          -        4,856      -         10,667
     Inventory                                     -          -        1,694      2,896        -        -          4,590
     Prepaid expenses                              -          -          -        1,017        -        -          1,017
     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     108,641
     TOTAL USES OF CASH (B)                     31,572     76,244      4,364      7,094      5,405     7,648     132,327
NET SOURCES (USES) OF CASH (A-B)                   158       (855)       579       (254)     1,861     1,889       3,378
CASH - BEGINNING BALANCE                           913      1,071        216        795        541     2,402         913

CASH - ENDING BALANCE (MOR-2)                   $1,071       $216       $795       $541     $2,402    $4,291      $4,291
</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                            $1        $28        $32       $127       $48
DEPOSITS IN TRANSIT                     -          -          -          -         -
OUTSTANDING CHECKS                      -          -          -          -         -

ADJUSTED BANK BALANCE                   $1        $28        $32       $127       $48

BEGINNING CASH PER BOOKS               $83        $28        $35       $210      $285
RECEIPTS                                48        -          -        3,582    16,679
TRANSFERS BETWEEN ACCOUNTS            (130)       -          -       (3,665)   (3,627)
CHECKS / OTHER DISBURSEMENTS(2)         -         -           (3)       -     (13,289)

ENDING CASH PER BOOKS (MOR-2)           $1        $28        $32       $127       $48
</TABLE>
<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                         $3,843   ($1,508)    $810       $5        $36         $88      $3,510
DEPOSITS IN TRANSIT                     -         -        -          -          -         781         781
OUTSTANDING CHECKS                      -         -        -          -          -          -           -

ADJUSTED BANK BALANCE                $3,843   ($1,508)    $810       $5        $36        $869      $4,291

BEGINNING CASH PER BOOKS             $1,177     ($967)     607       $4        $36        $904      $2,402
RECEIPTS                             21,749       -          3      101          -         (19)     42,143
TRANSFERS BETWEEN ACCOUNTS            3,895     2,977      650     (100)         -          -          -
CHECKS / OTHER DISBURSEMENTS        (22,978)   (3,518)    (450)       -          -         (16)    (40,254)
                                                                                               
ENDING CASH PER BOOKS (MOR-2)        $3,843   ($1,508)    $810      ($5)       $36        $869      $4,291
</TABLE>
<TABLE>
<CAPTION>
CASH RECEIPTS AND DISBURSEMENTS

MONTH                             Sept. 30    Oct. 31    Nov. 30    Dec. 31    Jan. 31    Feb. 28
<S>                               <C>         <C>        <C>        <C>        <C>        <C> 
BEGINNING CASH                         $455     $1,071       $216       $795       $541    $2,402
TOTAL RECEIPTS                       50,551     43,049     51,844     42,068     25,565    42,143
TOTAL DISBURSEMENTS (MOR-1)         (49,935)   (43,904)   (51,265)   (42,322)   (23,704)  (40,254)

ENDING CASH (MOR-2)                  $1,071       $216       $795       $541     $2,402    $4,291
</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
<S>                  <C>          <C>         <C>        <C>        <C>        <C>       <C>
Bill McFarland (1)    Salary        $31,333    $18,631    $35,283        -          -     $54,500
Bill McFarland (1)    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
C.B. Schultz          Expenses          868      1,016        -        3,044     2,022        638
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
David Kay             Expenses        5,868      4,699      2,168      2,591       174      1,843
Doug Murphy           Salary         38,807     23,075     22,026     23,075    22,026     20,977
Doug Murphy           Expenses        7,538      1,065      3,014      9,879     5,763        613
Gerald Murphy         Salary         50,306     29,912     28,552     29,912    28,552     27,192
Gerald Murphy         Expenses        8,578        -          -          -       1,837      5,603
Joe Westover          Salary         15,667      9,315      8,892      9,315     8,892      8,468
Joe Westover          Expenses          715        125      1,037        -       1,955         -
Karen Porter          Salary         10,888      6,474      6,179      6,474     6,179      5,885
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
Lee Adams             Expenses          720     10,558        -        1,784     4,677         -
Ray Koza              Salary         13,712      8,153      7,782      8,153     7,782      7,412
Ray Koza              Expenses        1,616        475      5,990        857     2,352      3,139
Richard McCombs       Salary         26,590     24,794      7,187        -         -           -
Richard McCombs       Expenses       14,368      2,653        -          -       1,023         -
Richard McCombs       Diretors Fees     -          -          -          -       1,326         -   
Urbain Tran           Salary         12,677      7,538      7,195      7,538     7,195      6,852
Urbain Tran           Expenses        7,380      1,645      8,056     13,779     3,237      4,652
S.C. Bain, Jr.        Directors Fees    -          -          -          -       3,109         -
William H. Burgess    Directors Fees    -          -          -          -       3,109         -
411 NSHP LP           Office rent    32,845     32,645     36,161     32,645    32,645     32,645

TOTAL INSIDERS (MOR-1)             $390,048   $292,953   $256,185   $220,237  $214,150   $226,751
</TABLE>
<TABLE>
<CAPTION>
PROFESSIONALS            COMP.
NAME                     TYPE     Sept. 30    Oct. 31    Nov. 30    Dec. 31    Jan. 31     Feb.28
<S>                               <C>         <C>        <C>       <C>        <C>        <C>
Jordan, Hyden, Womble & Culbreth    $37,520    $37,480        -          -          -         -
Policano & Manzo, L.L.C.             60,093    136,660     64,846     32,338        -         -
Jay Alix and Associates                 -          -          -      499,913        -     $185,964
Wachtell Lipton                         -          -          -          -     105,000     136,941
Pachulski, Stang, Zeihl, & Young        -          -          -          -          -      450,000
Bracewell & Patterson                   -          -          -          -          -       52,008

TOTAL PROFESSIONALS (MOR-1)         $97,612   $174,139    $64,846   $532,251  $105,000    $824,913
</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.
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 $17,055.
MOR-3
     1. Book value.
     2. Reserves for losses on Early California Foods, Comet Ventures,
     and ARI-Vinafood II.
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.
MOR-9 
     1. Mr. McFarland is no longer an employee of American Rice, Inc.
     Amounts paid in February represent final settlement of pay and
     expenses.


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