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.