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Previous: NICHOLAS APPLEGATE MUTUAL FUNDS, 497, 1998-07-24 |
Next: MUNICIPAL INVT TR FD MULTISTATE SERIES 34 DEFINED ASSET FDS, 497, 1998-07-24 |
<PAGE> 1
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): July 23, 1998
MOLTEN METAL TECHNOLOGY, INC.
--------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-21042 52-1659959
- --------------------------------------------------------------------------------
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
421 CURRANT ROAD, FALL RIVER, MA 02720
--------------------------------------
Address of Principal Executive Offices
Registrant's telephone number, including area code: (508) 675-3900
---------------
<PAGE> 2
ITEM 5. OTHER EVENTS
MONTHLY OPERATING REPORTS FILED WITH UNITED STATES TRUSTEE
On December 3, 1997, Molten Metal Technology, Inc. (the "Company") and
its subsidiaries filed a voluntary petition for reorganization under Chapter 11
of the U.S. Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court
for the District of Massachusetts (Eastern Division) (the "Bankruptcy Court").
The case numbers are as follows:
<TABLE>
<S> <C>
Molten Metal Technology, Inc. 97-21385-CJK
MMT of Tennessee Inc. 97-21386-CJK
MMT Federal Holdings, Inc. 97-21387-CJK
M4 Environmental Management Inc. 97-21388-CJK
M4 Environmental L.P. 97-21389-CJK
</TABLE>
Pursuant to Federal Rule of Bankruptcy Procedure 2015 and the United
States Trustee's Operating Guidelines and Reporting Requirements for Chapter 11
cases, each of the Company, MMT of Tennessee, Inc., MMT Federal Holdings, Inc.,
M4 Environmental Management Inc., and M4 Environmental, L.P. (collectively, the
"Companies") must file a Monthly Operating Report (MOR) with the Office of the
United States Trustee (Region One). The MOR for each of the Companies for the
month ending June 30, 1998, together with a consolidated report, were filed with
the Office of the United States Trustee on July 23, 1998. Copies of these MORs
are attached hereto as Exhibits 99.1 through 99.6 and are incorporated herein by
reference.
AMENDMENT OF POST-PETITION FINANCING AGREEMENT
On March 9, 1998 the Company announced it had received approval from
the Bankruptcy Court for a $20 million loan facility from affiliates of Morgens,
Waterfall, Vintiadis & Company, Inc. (the "Lender"). The $20 million financing
was used to repay a short-term loan received from the Lender and has also
provided capital and operating funds to enhance the operations of the Company's
two operating plants in Oak Ridge, Tennessee. The loan will become due on
December 31, 1999 or the effective date of a Reorganization Plan for any of the
Companies, whichever is earlier. Execution of the $20 million Post-Petition
Medium-Term Financing agreement (the "Loan Agreement"), closing of the loan and
initial advance of funds was completed on March 20, 1998.
The Loan Agreement includes, among other things, several financial and
operating covenants that require the Company to achieve certain standards as a
condition of the loan, including an "Earnings Before Interest, Taxes,
Depreciation and Amortization" ("EBITDA") covenant that obligates the Company to
maintain its EBITDA above certain specified levels on a cumulative monthly
basis, and a "Throughput" covenant that obligates the Company to maintain the
amount of ion exchange resin processed at the Company's Q-CEP facility in Oak
Ridge, Tennessee above certain specified levels, also on a cumulative monthly
basis.
<PAGE> 3
Failure to comply with any of the covenants in the Loan Agreement, including the
EBITDA and Throughput covenants, could constitute an Event of Default under the
Loan Agreement that would allow the Lender, among other things, to accelerate
repayment of the outstanding loan balance together with accrued interest.
On July 20, 1998, the Company and the Lender executed Amendment No. 1
to the Loan Agreement ("Amendment No. 1"). Amendment No. 1 modifies the EBITDA
covenant and the Throughput covenant to reflect circumstances related to the
capital improvements program (the "Improvement Program") for the Company's Q-CEP
Facility in Oak Ridge, Tennessee (the Q-CEP Facility"). Amendment No. 1 modified
the EBITDA covenant and Throughput covenant only for the time period through
December 31, 1998. The EBITDA covenant and Throughput covenant for all time
periods in 1999, through the end of the term of the loan on December 31, 1999,
remain unchanged from those of the original Loan Agreement.
The original covenants in the Loan Agreement assumed that a shutdown of
the Q-CEP Facility to allow completion of the Improvement Program would commence
in early May 1998 and last for approximately 4 weeks. In fact, the scheduled
shutdown began on May 27, 1998 and lasted approximately 6 weeks. The start of
the shutdown was delayed until necessary equipment was received on site. The
duration of the shutdown was longer than expected because demolition and
decontamination activities that were required prior to the installation of new
equipment took longer than expected.
Having completed the Improvement Program, the Company is now in the
process of recommencing operations at the Q-CEP Facility. The intent of the
Improvement Program is to increase the throughput of the Q-CEP Facility by 60%
and lower its operating costs. The Company believes it will be able to determine
the efficacy of the Improvement Program during the third quarter of 1998.
STATUS OF THE COMPANY'S CEP FACILITY IN BAY CITY, TEXAS
The Company owns a Catalytic Extraction Processing ("CEP") Facility in
Bay City, Texas (the "Bay City Facility"). The Bay City Facility is located on
property that the Company leased in May, 1995 from Hoechst Celanese Chemical
Group, Inc., predecessor in interest to Celanese Ltd. ("Celanese"). Construction
of the Bay City Facility was largely completed by November, 1997; however, the
Company was unable to commence operation of the Facility due to lack of
necessary start-up and operating funds.
After filing for protection under Chapter 11, the Company began
actively searching for a partner or partners who could provide financial,
technical, operational, and/or management support that is required to start-up
and operate a chemical processing facility of this type. In June, 1998, the
Company concluded that it was unlikely to find such a partner or partners, and
on June 19, 1998 the Company filed with the Bankruptcy Court a motion to reject
its lease with Celanese. This motion to reject the lease was approved by the
Bankruptcy Court on July 8, 1998. Pursuant to the Bankruptcy Court's order
granting the
<PAGE> 4
lease rejection motion, the Company will have access to the property for a
period of up to two years to allow for orderly disposition of the Company's
property. The Company is currently evaluating all available options for
disposition of the Bay City Facility, including liquidation of the asset.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit
Number Description of Document
- ------ -----------------------
99.1 Monthly Operating Report (Consolidated) of the Company and its
subsidiaries for the month ending June 30, 1998 (1)
99.2 Monthly Operating Report of the Company for the month ending
June 30, 1998 (1)
99.3 Monthly Operating Report of the Company's subsidiary MMT of
Tennessee Inc. for the month ending June 30, 1998 (1)
99.4 Monthly Operating Report of the Company's subsidiary MMT
Federal Holdings, Inc. for the month ending June 30, 1998 (1)
99.5 Monthly Operating Report of the Company's subsidiary M4
Environmental Management Inc. for the month ending June 30,
1998 (1)
99.6 Monthly Operating Report of the Company's subsidiary M4
Environmental, L.P. for the month ending June 30, 1998 (1)
(1) The Company agrees to furnish supplementally a copy of any omitted
schedule or similar attachment to the Commission upon its request.
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.
MOLTEN METAL TECHNOLOGY, INC.
Dated: July 24, 1998 By: /s/ F. Gordon Bitter
------------------------------
F. Gordon Bitter
Chief Executive Officer and
Chief Financial Officer
<PAGE> 1
EXHIBIT 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: MOLTEN METAL (CONSOLIDATED) CASE NO.: 97-21385-CJK
DEBTOR JUDGE: CAROL J. KENNER
MONTHLY OPERATING REPORT FOR MONTH ENDING: 6/30/98
-------
COMES NOW, MOLTEN METAL TECHNOLOGY, INC. (CONSOLIDATED) , Debtor in Possession,
and hereby its Monthly Operating Report for the period commencing 6/1/98 and
ending 6/30/98 as shown by the report and exhibits consisting of 10 pages and
containing the following, as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
---------------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
---------------
X Summary of Accounts Receivable (Form OPR-3)
---------------
X Schedule of Post-Petition Liabilities (Form OPR-4)
---------------
X Income Statement (Form OPR-5)
---------------
X Statement of Sources and Uses of Cash (Form OPR-6)
---------------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 7/23/98 DEBTOR-IN-POSSESSION
-------
By: /s/ F. Gordon Bitter
-------------------------------------------
Name & Title: F. Gordon Bitter, CEO & CFO
Molten Metal Technology, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: MOLTEN METAL (CONSOLIDATED) CASE NO.: 97-21385-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices, this
operating report accounts for all cash transfers among the Debtor and
its affiliates and allocates some, but not all, of the expenses borne
by one affiliate for the benefit of another or the other. In the
absence of a decision for substantive consolidation, the Debtor will
develop an appropriate allocation of all expenses among the affiliated
entities.
<PAGE> 3
FORM OPR-1
COMPARATIVE BALANCE SHEETS
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 4,654,326 7,712,988 7,222,698 5,141,902 1,679,329 822,084 176,049 546,014
Other negotiable
instruments
(i.e. CD's,
Treasury
Bills, Etc.)
Accounts
Receivable-Trade,
Net (OPR-3) 7,589,596 7,768,045 6,001,822 6,121,182 7,604,873 7,663,418 7,512,835 4,556,459
Less: allowance for
doubtful accounts (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000)
Accounts
Receivable-Other 3,362,193 3,114,234 3,630,556 3,936,087 3,466,844 3,998,122 3,940,945 1,735,466
Inventory, at cost 4,642,718 2,999,979 2,981,683 2,953,384 3,252,606 3,070,450 3,332,996 3,392,372
Prepaid expenses 2,944,501 3,432,683 3,590,453 3,912,070 4,053,504 3,798,824 4,556,459 3,672,626
Deposits 199,046 176,955 258,371 264,731 327,840 327,840 327,840 377,840
Other:
Investment in
Nichimen
Joint Venture 433,739 433,739 433,739 433,739 433,739 433,739 433,739 433,739
Investment
in CW, LLC 1,497,718 1,497,718 1,497,718 1,497,718 1,497,718 1,497,718 1,497,718 1,497,718
Long Term Notes
Receivable 20,806,950 20,806,950 20,806,950 20,806,950 20,806,950 20,806,950 20,806,950 20,806,950
Restricted Cash
Collateral
Deposits 3,921,953 3,930,999 3,940,000 3,948,082 4,236,270 4,236,270 4,236,270 4,263,027
-------------------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 49,902,740 51,724,290 50,213,990 48,865,845 47,209,673 46,505,415 46,671,801 41,132,211
-------------------------------------------------------------------------------------------------------------
PROPERTY, PLANT AND
EQUIPMENT, AT COST 158,480,555 158,577,054 158,881,900 159,301,814 159,543,659 160,680,666 161,580,803 164,055,888
Less: Accumulated
Depreciation (23,789,824) (24,685,394) (25,710,487) (26,735,581) (27,727,471) (28,736,212) (29,769,307) (30,772,011)
-------------------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT
AND EQUIPMENT 134,690,731 133,891,660 133,171,413 132,566,233 131,816,188 131,944,454 131,811,496 133,283,877
-------------------------------------------------------------------------------------------------------------
OTHER ASSETS
(ITEMIZED IF
VALUE EXCEEDS
10% OF "TOTAL
ASSETS")
Intangible Assets 26,143,973 26,143,421 26,168,331 26,189,604 26,398,877 26,488,284 26,564,368 26,265,166
Less: Accumulated
Amortization (4,212,236) (4,412,755) (4,604,973) (4,797,190) (4,992,683) (5,199,409) (5,413,005) (5,623,166)
-------------------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 21,931,737 21,730,666 21,563,358 21,392,414 21,406,194 21,288,875 21,151,363 20,642,000
-------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 206,525,208 207,346,616 204,948,761 202,824,492 200,432,055 199,738,744 199,634,660 195,058,088
=============================================================================================================
</TABLE>
<PAGE> 4
FORM OPR-2
COMPARATIVE BALANCE SHEETS
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt
(See Form OPR-4) 5,260,000 7,000,000 7,000,000 7,000,000 7,000,000 9,300,000 10,800,000
Unsecured
Debt-Intercompany
Obligations due
to cash transfers
in Post Petition
Operations
Unsecured
Debt-Obligations
incurred in Post
Petition
Operations
(See Form
OPR-4) 3,076,569 2,266,637 4,943,854 5,414,210 5,228,901 5,733,366 8,118,273
-------------------------------------------------------------------------------------------------------------
TOTAL POST
PETITION
LIABILITIES 0 8,336,569 9,266,637 11,943,854 12,414,210 12,228,901 15,033,366 18,918,273
PRE PETITION
INTERCOMPANY
LIABILITIES
DEFERRED
REVENUE/DEFERRED
INCOME 12,378,455 10,623,523 10,213,992 10,200,940 10,180,107 10,347,984 10,194,496 9,993,267
TOTAL OTHER PRE
PETITION
LIABILITIES 242,148,750 241,463,644 242,349,829 240,705,035 240,424,837 241,011,506 240,761,057 236,301,661
-------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 254,527,205 260,423,736 261,830,458 262,849,829 263,019,154 263,588,391 265,988,919 265,213,201
-------------------------------------------------------------------------------------------------------------
SHAREHOLDERS'
EQUITY
(DEFICIT)
Preferred Stock 15,874,471 16,793,713 17,319,518 17,845,322 18,371,126 18,011,989 17,652,851 17,293,713
Common Stock 237,810 237,810 237,810 237,810 237,810 237,810 237,810 237,810
Paid in Capital 170,893,690 170,893,690 170,893,907 170,893,907 170,893,907 170,893,690 170,893,690 170,893,690
Valuation
Allowance 9,683 11,636
Dividends Paid (4,343,230) (5,262,472) (5,788,277) (6,314,081) (6,830,562) (6,471,425) (6,112,287) (5,753,149)
Treasury Stock (1,251,319) (1,251,319) (1,251,319) (1,251,319) (1,251,319) (1,251,319) (1,251,319) (1,251,319)
Deferred
Compensation (127,137) (120,489) (113,842) (107,838) (101,191) (94,758) (88,111) (83,934)
Retained Earnings
Through Filing
Date (229,295,965) (229,295,965) (229,295,965) (229,295,965) (229,295,965) (229,295,965) (229,295,965) (229,295,965)
Post Filing
Date (5,083,724) (8,883,529) (12,033,173) (14,610,905) (15,879,669) (18,390,928) (22,195,959)
-------------------------------------------------------------------------------------------------------------
TOTAL
SHAREHOLDERS'
EQUITY
(DEFICIT) (48,001,997) (53,077,120) (56,881,697) (60,025,337) (62,587,099) (63,849,647) (66,354,259) (70,155,113)
-------------------------------------------------------------------------------------------------------------
TOTAL
LIABILITIES
AND SHAREHOLDERS'
EQUITY 206,525,208 207,346,616 204,948,761 202,824,492 200,432,055 199,738,744 199,634,660 195,058,088
=============================================================================================================
</TABLE>
<PAGE> 5
FORM OPR-3
SUMMARY OF ACCOUNTS RECEIVABLE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF 12/3/97 7,589,596 4,116,989 943,972 797,630 1,731,005
FILING: Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
7,439,596 4,116,989 943,972 797,630 1,581,005
=================================================================
MONTH: 12/31/97 7,768,045 1,875,415 3,473,011 519,172 1,900,447
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
7,618,045 1,875,415 3,473,011 519,172 1,750,447
=================================================================
MONTH: 1/31/98 6,001,822 1,290,680 1,267,373 1,458,561 1,985,208
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
5,851,822 1,290,680 1,267,373 1,458,561 1,835,208
=================================================================
MONTH: 2/28/98 6,121,182 1,377,798 1,019,381 572,967 3,151,036
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
5,971,182 1,377,798 1,019,381 572,967 3,001,036
=================================================================
MONTH: 3/31/98 7,604,873 3,156,081 1,505,814 286,492 2,656,486
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
7,454,873 3,156,081 1,505,814 286,492 2,506,486
=================================================================
MONTH: 4/30/98 7,663,418 3,222,525 851,867 791,510 2,797,516
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
7,513,418 3,222,525 851,867 791,510 2,647,516
=================================================================
MONTH: 5/31/98 7,512,835 1,659,753 2,879,561 361,683 2,611,838
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
7,362,835 1,659,753 2,879,561 361,683 2,461,838
=================================================================
MONTH: 6/30/98 4,556,459 1,769,703 1,102,226 101,884 1,582,646
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
4,406,459 1,769,703 1,102,226 101,884 1,432,646
=================================================================
</TABLE>
<PAGE> 6
FORM OPR-4
SCHEDULE OF POST PETITION LIABILITIES
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
--------------------------------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
--------------------------------------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition
advances-Morgens
Waterfall Financing 3/20/98-5/31/99 12/31/99 10,800,000
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens
Waterfall Financing
--------------------------------------------------------------------
TOTAL POST PETITION SECURED DEBT 10,800,000 0 0 0 0
--------------------------------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable
(see attached schedules) 1,927,834
Payroll withholdings
Accrued Payroll
Accrued Interest 166,944
Accrued Disposal Costs 5,046,862
Other Accrued expenses-Estimated liability
incurred, but not invoiced as of the
end of the period and deferred obligations. 976,633
--------------------------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 8,118,273 0 0 0 0
--------------------------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 18,918,273 0 0 0 0
====================================================================
</TABLE>
<PAGE> 7
FORM OPR-5
INCOME STATEMENT
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET REVENUE (INCOME) 0 4,103,641 1,797,407 2,069,601 2,643,744 4,467,381 3,203,483 1,367,650
---------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 224,548 1,676,135 1,353,865 1,050,129 1,123,331 1,143,869 1,071,850 1,133,096
Less: Salaries & wages
capitalized in
fixed assets (121,795) (120,000) (87,816) (170,871) (132,089)
Benefits 562,849 318,037 314,271 311,609 267,260 274,753 292,344
Bad debt expense 18,625
Cost of goods sold 1,200,000 (20,833)
Decontamination &
disposal 26,758 26,758 26,758 26,758 26,758 26,758
Disposal costs-secondary
wastes 112,496 105,018 431,112 522,653 417,282 834,424 269,188
Financing costs 212,000 9,000 7,330
Insurance 108,638 114,934 84,457 83,183 83,183 75,058 75,745
Legal services 342,713 45,265 30,000
Materials 1,151,084 866,199 418,286 562,465 999,505 578,194 621,501
Office expense & supplies 37,650 21,138 66,470 51,520 11,113 85,942 42,713
Other 18,202 57,436 8,528 4,343 1,769 1,253 1,683
Outside services 814,013 443,144 473,118 443,347 660,144 637,644 538,444
Professional services 857,587 59,868 145,646 124,269 (121,092) 17,421
Rent-equipment 104,873 39,324 87,631 58,604 36,257 49,284 93,810
Rent-office/buildings 264,752 317,269 107,221 (94,110) 136,063 87,598 20,598
Supplies-processing 18,515
Taxes 87,546 40,219 31,143 35,459 41,746 99,650 184,673
Telephone 134,438 46,167 38,809 17,319 32,054 55,441 31,914
Transportation 110,472 93,218 164,655 132,244 152,740 77,421 160,782
Travel & entertainment 43,509 71,260 80,591 110,575 123,532 136,127 57,343
Utilities 234,343 8,819 73,848 48,105 79,853 77,656 58,364
---------------------------------------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 224,548 8,137,198 3,849,045 3,482,673 3,561,674 4,004,220 4,043,447 3,504,860 0
---------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST,
DEPRECIATION, TAXES, OR
EXTRAORDINARY EXPENSES (224,548) (4,033,557) (2,051,638) (1,413,072) (917,930) 463,161 (839,964) (2,137,210) 0
---------------------------------------------------------------------------------------------------
INTEREST(INCOME) EXPENSE 62,539 90,855 91,010 71,976 129,416 133,029 126,323
DEPRECIATION AND AMORTIZATION 1,096,271 1,217,312 1,217,312 1,230,989 1,215,466 1,234,516 1,222,198
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE 440,000 428,250 352,871 387,043 303,750 319,300
OTHER (INCOME) EXPENSE (108,643)
(GAIN) LOSS ON SALE OF ASSETS 3,966
---------------------------------------------------------------------------------------------------
NET INCOME (LOSS) (224,548) (5,083,724) (3,799,805) (3,149,644) (2,577,732) (1,268,764) (2,511,259) (3,805,031) 0
===================================================================================================
</TABLE>
<PAGE> 8
INSURANCE EXPIRATION STATEMENT EXHIBIT D
<TABLE>
<CAPTION>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
SEE ATTACHED
</TABLE>
I declare under penalty of perjury that the information provided on the
attachments hereto is true and correct to the best of my knowledge and belief.
Date: 7/23/98
-------
Molten Metal Technology, Inc.
By: /s/ F. Gordon Bitter
----------------------------------
F. Gordon Bitter
Chief Executive Officer
MMT of Tennessee, Inc.
By: /s/ F. Gordon Bitter
----------------------------------
F. Gordon Bitter
Vice President
M4 Environmental, L.P.
By: /s/ F. Gordon Bitter
----------------------------------
M4 Environmental Management, Inc.
General Partner
By: /s/ F. Gordon Bitter
----------------------------------
F. Gordon Bitter
Vice President
MMT Federal Holdings, Inc.
By: /s/ F. Gordon Bitter
----------------------------------
F. Gordon Bitter
Vice President
<PAGE> 9
FORM OPR-6
STATEMENT OF SOURCES AND USES OF CASH
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
TOTAL
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING
ACTIVITIES:
Net Earnings (Loss) (5,083,724) (5,083,724) (3,799,805) (3,149,644) (2,577,732) (1,268,764) (2,511,259) (3,805,031)
Adjustments to
Reconcile Net
Earnings to
Net Cash Provided
(Used) by Operating
Activities:
Depreciation &
Amortization 1,096,271 1,096,271 1,217,312 1,217,312 1,230,989 1,215,466 1,246,691 1,212,865
Decrease (Increase)-
Accounts Receivable 69,510 69,510 1,249,901 (424,891) (1,014,448) (589,823) 207,760 5,161,855
Decrease (Increase)-
Inventories 1,642,739 1,642,739 18,296 28,299 (299,222) 182,156 (262,546) (59,376)
Decrease (Increase)-
Prepaid Expenses (488,182) (488,182) (157,770) (321,617) (141,434) 254,680 (757,635) 883,833
Decrease (Increase)-
Other Assets 13,597 13,597 (90,417) (14,442) (351,297) 0 0 (76,757)
Increase (Decrease)-
Pre Petition
Liabilities (2,440,220) (2,440,220) 476,653 (1,657,847) (301,032) 754,545 (403,937) (4,660,625)
Increase (Decrease)-
Post Petition
Liabilities 3,076,569 3,076,569 (809,932) 2,677,217 470,356 (185,309) 504,465 2,384,907
---------------------------------------------------------------------------------------------------------
NET CASH PROVIDED
(USED) BY OPERATING
ACTIVITIES 0 (2,113,440) (2,113,440) (1,895,762) (1,645,613) (2,983,820) 362,951 (1,976,461) 1,041,671
---------------------------------------------------------------------------------------------------------
CASH FLOWS USED IN
INVESTING ACTIVITIES
Capital Expenditures (96,499) (96,499) (329,756) (441,187) (451,118) (1,226,414) (976,221) (2,175,883)
Sale of Net Fixed
Assets (43,605)
---------------------------------------------------------------------------------------------------------
NET CASH PROVIDED
(USED) IN INVESTING
ACTIVITIES 0 (96,499) (96,499) (329,756) (441,187) (494,723) (1,226,414) (976,221) (2,175,883)
---------------------------------------------------------------------------------------------------------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Increase (Decrease)-
Morgens Waterfall 5,260,000 5,260,000 1,740,000 0 0 0 2,300,000 1,500,000
Increase (Decrease)-
Shareholder Valuations 8,601 8,601 (4,772) 6,004 15,970 6,218 6,647 4,177
Purchase of Treasury
Stock-Preferred Shares
---------------------------------------------------------------------------------------------------------
NET CASH PROVIDED
(USED) IN FINANCING
ACTIVITIES 0 5,268,601 5,268,601 1,735,228 6,004 15,970 6,218 2,306,647 1,504,177
---------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS 0 3,058,662 3,058,662 (490,290) (2,080,796) (3,462,573) (857,245) (646,035) 369,965
Cash and Cash
Equivalents at
Beginning of Period 4,654,326 4,654,326 7,712,988 7,222,698 5,141,902 1,679,329 822,084 176,049
---------------------------------------------------------------------------------------------------------
Cash and Cash
Equivalents at
End of Period 0 7,712,988 7,712,988 7,222,698 5,141,902 1,679,329 822,084 176,049 546,014
=========================================================================================================
</TABLE>
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
3. BANK ACCOUNTS
MMT MMT MMT TENNESSEE TENNESSEE TENNESSEE
OPERATING PAYROLL PAYROLL OPERATING PAYROLL PAYROLL
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Bank Name U.S. TRUST U.S. TRUST NATIONSBANK U.S. TRUST U.S. TRUST NATIONSBANK
Account Number 1100937836 1100937844 3001270655 110937851 1100937869 3001270846
BEGINNING BOOK BALANCE (423,058) 0 19,003 558,537 0 29,361
PLUS: Deposits-Collections of A/R 1,011,316 3,958,252
Other Receipts 103,340
Loan Advances 1,500,000
LESS: Disbursements (4,980,389) (177,677)
Payroll (602,945) (441,932)
Returned Checks
Loan Repayments
OTHER: Adjustments
Transfers In (Out) 2,383,000 600,000 (3,408,000) 425,000
------------------------------------------------------------------------------------------
ENDING BOOK BALANCE (405,791) 0 16,058 931,112 0 12,429
==========================================================================================
<CAPTION>
ALEX OPPEN- M4 LP ESCROW AT MMT FED
BROWN HEIMER OPERATING ROPES HOLDINGS TOTAL
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ALEX OPPEN- ROPES &
Bank Name BROWN HEIMER SUNTRUST GRAY U.S. TRUST
Account Number 210-71007 033-82238 0005618983 002239244-1
BEGINNING BOOK BALANCE 0 0 (8,294) 0 500 176,049
PLUS: Deposits-Collections of A/R 4,969,568
Other Receipts 103,340
Loan Advances 1,500,000
0
LESS: Disbursements (5,158,066)
Payroll (1,044,877)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments 0
Transfers In (Out) 0
0
-------------------------------------------------------------------------------------
ENDING BOOK BALANCE 0 0 (8,294) 0 500 546,014
=====================================================================================
</TABLE>
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professional and payments on
Pre-petition debts in the schedule below.
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
-------------- ----------------------------
<S> <C> <C> <C>
Professionals (attorneys,
accountants, etc.):
Bank of New York (Creditors Committee Expenses) 535 6/18/98 42505
Blackstone Group 129,924 6/18/98 42510
Cameron & Barkley (Creditors Committee Expenses) 1,449 6/18/98 42519
Celanese (Creditors Committee Expenses) 3,135 6/18/98 42523
Cohn & Kelakos, LLP 189,307 6/18/98 42529
Goodwin, Procter & Hoar 298,101 6/18/98 42547
KPMG Peat Marwick 98,959 6/18/98 42572
Latham & Watkins 31,335 6/18/98 42576
Lockheed Martin (Creditors Committee Expenses) 3,647 6/18/98 42579
Fluor Daniel (Creditors Committee Expenses) 1,340 6/18/98 42635
=======
757,732
=======
PRE-PETITION DEBTS
NONE
=======
Total payments of pre-petition debts 0
=======
</TABLE>
<PAGE> 11
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
<TABLE>
<CAPTION>
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and paid.
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
----------------- ------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 6/12, & 6/26/98 17,308 11,870 4,815 4,815
Eugene Berman, VP, Regul, Legal, & Extern Aff 6/12, & 6/26/98 10,722 9,122 395 395
F. Gordon Bitter, CEO & CFO, Director 6/12, & 6/26/98 22,011 13,931 6,681 6,681
Steven Brien, VP, Chemical Sales & Marketing 6/12, & 6/26/98 12,308 7,798 3,636 3,636
Victor E. Gatto, Jr., VP, Government Markets 6/12, & 6/26/98 7,823 7,474 114 114
David Hoey, V,P Business Development 6/12, & 6/26/98 13,165 9,293 2,998 2,998
F. James Howie, III, VP, Procurement 6/12, & 6/26/98 10,668 6,667 2,391 2,391
Ethan E. Jacks, VP, General Counsel, Secretary 6/12, & 6/26/98 13,551 8,601 3,147 3,147
James E. Johnston, VP, Technical Development 6/12, & 6/26/98 11,358 7,101 2,576 2,576
Randall Jones, Assistant Secretary 6/12, & 6/26/98 9,303 5,999 1,862 1,862
Christopher Nagel, Chief Technology Officer 6/12, & 6/26/98 12,395 7,751 2,912 2,912
Charles W. Shaver, President & COO, Director 6/12, & 6/26/98 20,472 12,951 5,260 5,260
-----------------------------------------------
TOTAL EXECUTIVE PAYROLL 161,084 108,558 36,787 36,787
===============================================
</TABLE>
2. INSURANCE
Is Workers' Compensation and other insurance in effect? Yes
-------
Are payments current? Yes
-------
If any policy has lapsed, been replaced or renewed, state
so in the schedule below. Attach a copy of the new policy's
binder or coverage page.
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- --------------------------------------------------------------------------------
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
<PAGE> 12
MOLTEN Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
============================================================================================
CARRIER NAME & ADDRESS TYPE BROKER
============================================================================================
<S> <C> <C>
Commerce & Industry Insurance Co. General Liability Aon
70 Pine Street Automobile Liability Aon
New York, NY 10270 Excess Liability - 1st layer Aon
New Hampshire Insurance Co. Workers Compensation Aon
70 Pine Street Workers Compensation - CA Aon
New York NY 10270 Employers' Liability Aon
American International Specialty Lines Pollution Liability - MA/TN Aon
Insurance Co. Pollution Liability - TX Aon
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company Fidelity Aon
P.O. Box 91394 Fiduciary Aon
Chicago, IL 60693
Executive Risk Indemnity Company Directors & Officers Liability Aon
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability Aon
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. Property Aon
Allendale Park
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property J&H/M&M
Town Center Nuclear Liability Facility Form - TN J&H/M&M
<CAPTION>
=========================================================================
LIMITS POLICY EXPIRATION PREMIUM PAID
NUMBER DATE THRU
=========================================================================
<S> <C> <C> <C> <C>
$1,000,000 340-94-76 12/3/98 $ 53,000 Current
$1,000,000 766-56-11 12/3/98 $ 3,540 Current
$20,000,000 606-23-31 12/3/98 $ 43,185 Current
excess of $1M
Statutory WC588-59-75 12/3/98 $111,250 Current
Statutory WC588-59-77 12/3/98 $ 753 Current
$1,000,000 WC588-59-75 12/3/9 inclu. Current
and -77[CA]
$3,000,000 8199951 12/3/98 $ 28,342 Current
$1,000,000 8199950 12/3/98 $ 16,919 Current
$500,000 751-118812-98 5/9/99 $ 6,000 Current
$2,000,000 751-118834-98 5/9/99 $ 6,000 Current
$10,000,000 751-091628-98 1/19/99 $350,000 Current
$1,000,000 PST 00 9648288 2/1/99 $ 2,000 Current
$147,000,000 CC626 12/2/99 $170,000 Current
Blanket
$45,000,000 98262 1/1/99 $ 97,500 Current
$50,000,000 NF-0338 12/31/98 $124,215 Current
</TABLE>
Page 12
<PAGE> 13
MOLTEN Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
============================================================================================
CARRIER NAME & ADDRESS TYPE BROKER
============================================================================================
<S> <C> <C>
29 South Main Street Master Worker Certificate - TN J&H/M&M
West Hartford, CT 06107
Nuclear Supplier's & Transp. J&H/M&M
Nuclear Liability Facility Form - SC J&H/M&M
Nuclear Foreign Supplier's & Transp. J&H/M&M
Master Worker Certificate - SC J&H/M&M
Nuclear Facility Liability - Comm. Park J&H/M&M
Master Worker Certificate - Comm. Park J&H/M&M
American International Specialty Pollution Legal and Closure/Post Closure J&H/M&M
Lines Ins. Co.
Harborside Financial Center
401 Plaza 3
Jersey City, NJ 07311
<CAPTION>
===============================================================================
LIMITS POLICY EXPIRATION PREMIUM PAID
NUMBER DATE THRU
===============================================================================
<S> <C> <C> <C> <C>
$200,000,000 NW-0235 12/31/98 $ 550 Not yet invoiced
Shared Agg.
$15,000,000 NS-0539 12/31/98 $ 8,670 Current
$10,000,000 NF-0329 12/31/98 $ 13,590 Current
$10,000,000 TBD 12/31/98 TBD Based on Foreign Sales
$200,000,000 NW-0237 12/31/98 $ 550 Not yet invoiced
Shared Agg.
$10,000,000 NF-0337 12/31/98 $ 39,568 Current
$200,000,000 NW-0234 12/31/98 $ 550 Not yet invoiced
Shared Agg.
$3,000,000 8183013 10/15/00 $ 94,400 Current
Pollution Legal Poll. Legal
$3,400,000 12/7/00 $425,000 Current
Closure Closure
</TABLE>
Note: The premium for the Pollution Legal/Closure policy (AISLIC no. 8183013) is
billed in 5 annual installments of $19,280 (Pollution Legal) and $85,000
(Closure). To date, the first three installments are paid in full. The remaining
installments come due on the anniversary date. Thus, the remaining installments
for 12/15/98 and 1999 for Pollution and for 1/4/99 and 2000 for Closure, are
unbilled and unpaid.
Page 13
<PAGE> 14
MOLTEN Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 6/1-6/30/98 $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 6/1-6/30/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. Employee Funded-Supplemental MMT 6/1-6/30/98 $1,968 Current
PO Box 27-644-1 Life
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental MMT TN 6/1-6/30/98 $1,185 Current
PO Box 27-644-1 Life
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life MMT 6/1-6/30/98 $10,960 Current
10159 Wayzata Boulevard Insurance Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life MMT TN 6/1-6/30/98 $8,231 Current
10159 Wayzata Boulevard Insurance Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 6/1-6/30/98 $50,000 Current
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
</TABLE>
Page 14 of 15
<PAGE> 15
MOLTEN Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
UNUM Life Insurance Employee Funded Long Term MMT 6/1-6/30/98 $1,951 Current
PO Box 7777-W0050 Disability
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 6/1-6/30/98 $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
Page 15 of 15
<PAGE> 1
EXHIBIT 99.2
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: MOLTEN METAL TECHNOLOGY, INC. CASE NO.: 97-21385-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
MONTHLY OPERATING REPORT FOR MONTH ENDING: 6/30/98
-------
COMES NOW, MOLTEN METAL TECHNOLOGY, INC., Debtor in Possession, and hereby its
Monthly Operating Report for the period commencing 6/1/98 and ending 6/30/98 as
shown by the report and exhibits consisting of 10 pages and containing the
following, as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
-----
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
-----
X Summary of Accounts Receivable (Form OPR-3)
-----
X Schedule of Post-Petition Liabilities (Form OPR-4)
-----
X Income Statement (Form OPR-5)
-----
X Statement of Sources and Uses of Cash (Form OPR-6)
-----
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 7/23/98 DEBTOR-IN-POSSESSION
-------
By: /s/ F. Gordon Bitter
----------------------------------------
Name & Title: F. Gordon Bitter, CEO & CFO
Molten Metal Technology, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: MOLTEN METAL TECHNOLOGY, INC. CASE NO.: 97-21385-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices, this operating
report accounts for all cash transfers among the Debtor and its affiliates and
allocates some, but not all, of the expenses borne by one affiliate for the
benefit of another or the others. In the absence of a decision for substantive
consolidation, the Debtor will develop an appropriate allocation of all expenses
among the affiliated entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 6/30/98
-------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
-----------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 4,893,869 6,713,407 4,953,236 4,072,063
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 1,094,993 891,484 451,441 392,839
Less: allowance for doubtful accounts
Accounts Receivable-Other 338,181 662,994 673,987 633,723
Accounts Receivable-Intercompany
Inventory, at cost 3,032,515 1,832,965 1,832,965 1,832,965
Prepaid expenses 2,994,736 3,276,848 3,447,882 3,783,158
Deposits 141,546 119,455 181,446 185,611
Other:
Investment in Nichimen Joint Venture 433,739 433,739 433,739 433,739
Investment in MMT of Tennessee 10 10 10 10
Investment in MMT Federal Holdings 1,000 1,000 1,000 1,000
Long Term Notes Receivable 1,806,950 1,806,950 1,806,950 1,806,950
Restricted Cash Collateral Deposits 3,706,433 3,715,479 3,724,480 3,732,562
-----------------------------------------------------
TOTAL CURRENT ASSETS 18,441,972 19,454,331 17,507,136 16,874,620
-----------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 86,181,337 86,206,483 86,347,343 86,409,258
Less: Accumulated Depreciation (21,105,234) (21,693,189) (22,282,884) (22,872,579)
-----------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 65,076,103 64,513,294 64,064,459 63,536,679
-----------------------------------------------------
OTHER ASSETS (itemized if value exceeds
10% of "total assets")
Intangible Assets 11,221,338 11,220,787 11,245,697 11,266,969
Less: Accumulated Amortization (1,765,428) (1,783,197) (1,801,012) (1,818,825)
-----------------------------------------------------
TOTAL OTHER ASSETS 9,455,910 9,437,590 9,444,685 9,448,144
-----------------------------------------------------
TOTAL ASSETS 92,973,985 93,405,215 91,016,280 89,859,443
=====================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98 6/30/98
------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 474,472 (373,368) (404,055) (389,733)
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 830,839 277,703 226,397 41,841
Less: allowance for doubtful accounts
Accounts Receivable-Other 627,686 497,002 700,005 232,169
Accounts Receivable-Intercompany
Inventory, at cost 1,832,965 1,832,965 1,832,965 1,832,965
Prepaid expenses 3,998,312 4,517,384 3,669,726 3,217,390
Deposits 246,394 246,394 246,394 246,394
Other:
Investment in Nichimen Joint Venture 433,739 433,739 433,739 433,739
Investment in MMT of Tennessee 10 10 10 10
Investment in MMT Federal Holdings 1,000 1,000 1,000 1,000
Long Term Notes Receivable 1,806,950 1,806,950 1,806,950 1,806,950
Restricted Cash Collateral Deposits 4,020,750 4,020,750 4,020,750 4,047,507
------------------------------------------------------
TOTAL CURRENT ASSETS 14,273,117 13,260,529 12,533,881 11,470,232
------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 86,482,544 86,522,002 87,221,428 87,237,344
Less: Accumulated Depreciation (23,421,627) (23,994,609) (24,567,381) (25,139,926)
------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 63,060,917 62,527,393 62,654,047 62,097,418
------------------------------------------------------
OTHER ASSETS (itemized if value exceeds
10% of "total assets")
Intangible Assets 11,476,242 11,565,648 11,641,734 11,649,677
Less: Accumulated Amortization (1,839,916) (1,872,238) (1,911,432) (1,947,191)
------------------------------------------------------
TOTAL OTHER ASSETS 9,636,326 9,693,410 9,730,302 9,702,486
------------------------------------------------------
TOTAL ASSETS 86,970,360 85,481,332 84,918,230 83,270,136
======================================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 6/30/98
-------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
-----------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 5,260,000 10,800,000 7,000,000
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations (1,183,624) (2,201,140) (1,829,262)
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 3,076,569 1,960,397 2,092,200
-----------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 7,152,945 10,559,257 7,262,938
PRE PETITION INTERCOMPANY LIABILITIES (126,615,241) (126,615,241) (126,615,241) (126,615,241)
DEFERRED REVENUE/DEFERRED INCOME 11,151,728 9,342,638 9,165,259 9,144,426
TOTAL OTHER PRE PETITION LIABILITIES 198,513,032 198,221,086 195,432,030 199,566,949
-----------------------------------------------------------
TOTAL LIABILITIES 83,049,519 88,101,428 88,541,305 89,359,072
-----------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock 15,874,471 16,793,713 17,319,518 17,845,322
Common Stock 237,810 237,810 237,810 237,810
Paid in Capital 170,893,690 170,893,690 170,893,690 170,893,690
Valuation Allowance 9,683 11,636 217 9,323
Dividends Paid (4,343,230) (5,262,472) (5,788,277) (6,314,081)
Treasury Stock (1,251,319) (1,251,319) (1,251,319) (1,251,319)
Deferred Compensation (127,137) (120,489) (113,842) (107,838)
Retained Earnings
Through Filing Date (171,369,502) (171,362,447) (171,362,447) (171,362,447)
Post Filing Date (4,636,335) (7,460,375) (9,450,089)
-----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 9,924,466 5,303,787 2,474,975 500,371
-----------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 92,973,985 93,405,215 91,016,280 89,859,443
===========================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98 6/30/98
-----------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 7,000,000 7,000,000 9,300,000 10,800,000
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations (3,038,101) (4,245,999) (5,806,354) (6,335,372)
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 2,468,346 2,164,943 2,975,597 3,435,157
-----------------------------------------------------------
TOTAL POST PETITION LIABILITIES 6,430,245 4,918,944 6,469,243 7,899,785
PRE PETITION INTERCOMPANY LIABILITIES (126,615,241) (126,615,241) (126,615,241) (126,615,241)
DEFERRED REVENUE/DEFERRED INCOME 9,123,593 8,888,307 8,805,851 8,678,208
TOTAL OTHER PRE PETITION LIABILITIES 199,295,786 200,075,660 200,292,269 199,927,902
-----------------------------------------------------------
TOTAL LIABILITIES 88,234,383 87,267,670 88,952,122 89,890,654
-----------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock 18,371,126 18,011,989 17,652,851 17,293,713
Common Stock 237,810 237,810 237,810 237,810
Paid in Capital 170,893,690 170,893,690 170,893,690 170,893,690
Valuation Allowance 9,323 9,323 9,323 9,323
Dividends Paid (6,839,885) (6,480,748) (6,121,610) (5,762,472)
Treasury Stock (1,251,319) (1,251,319) (1,251,319) (1,251,319)
Deferred Compensation (101,191) (94,758) (88,111) (83,934)
Retained Earnings
Through Filing Date (171,362,447) (171,362,447) (171,362,447) (171,362,447)
Post Filing Date (11,221,130) (11,749,878) (14,004,079) (16,594,882)
-----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (1,264,023) (1,786,338) (4,033,892) (6,620,518)
-----------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 86,970,360 85,481,332 84,918,230 83,270,136
===========================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 6/30/98
-------
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF FILING: 12/3/97 1,094,993 818,022 66,192 42,053 168,726
Allowance for doubtful accounts (150,000) (150,000)
------------------------------------------------------------------
944,993 818,022 66,192 42,053 18,726
==================================================================
MONTH: 12/31/97 891,484 8 680,697 0 210,779
Allowance for doubtful accounts 0
------------------------------------------------------------------
891,484 8 680,697 0 210,779
==================================================================
MONTH: 1/31/98 451,441 0 9 240,654 210,778
Allowance for doubtful accounts 0
------------------------------------------------------------------
451,441 0 9 240,654 210,778
==================================================================
MONTH: 2/28/98 392,839 0 (58,602) 8 451,433
Allowance for doubtful accounts 0
------------------------------------------------------------------
392,839 0 (58,602) 8 451,433
==================================================================
MONTH: 3/31/98 830,839 438,009 (58,602) 451,432
Allowance for doubtful accounts 0
------------------------------------------------------------------
830,839 438,009 0 (58,602) 451,432
==================================================================
MONTH: 4/30/98 277,703 67,500 210,203
Allowance for doubtful accounts 0
------------------------------------------------------------------
277,703 67,500 0 0 210,203
==================================================================
MONTH: 5/31/98 226,397 48,754 12 177,631
Allowance for doubtful accounts
------------------------------------------------------------------
226,397 48,754 12 0 177,631
==================================================================
MONTH: 6/30/98 41,841 (135,801) 12 177,630
Allowance for doubtful accounts
------------------------------------------------------------------
41,841 0 (135,801) 12 177,630
==================================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 6/30/98
-------
<TABLE>
<CAPTION>
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAXES PAYABLE
- -------------
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
-----------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
- ------------------- -----------------------------------------------
POST PETITION SECURED DEBT
- --------------------------
DIP FINANCING
Post petition advances-Morgens Waterfall
Financing 3/20/98-5/31/98 12/31/99 10,800,000
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens Waterfall
Financing
-----------------------------------------------
TOTAL POST PETITION SECURED DEBT 10,800,000 0 0 0 0
- -------------------------------- -----------------------------------------------
POST PETITION UNSECURED DEBT
- ----------------------------
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules) 1,927,834
Payroll withholdings
Accrued Payroll
Accrued Interest 166,944
Accrued Disposal Costs 363,746
Other Accrued expenses-Estimated liability
incurred, but not invoiced as of the end of
the period and deferred obligations. 976,633
-----------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 3,435,157 0 0 0 0
-----------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 14,235,157 0 0 0 0
===============================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 6/30/98
-------
<TABLE>
<CAPTION>
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET REVENUE (INCOME) 1,871,483 0 438,373
--------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 1,154,821 868,277 666,693 595,742
Less: Salaries & wages capitalized in fixed assets 0
Benefits 489,984 226,464 207,528 226,374
Bad debt expense 0
Cost of goods sold 1,200,000 (20,833) (20,833)
Decontamination & disposal 18,888 18,888 18,888
Disposal costs-secondary wastes 145,779 (100,000)
Financing costs 212,000 9,000
Insurance 98,733 94,603 64,126 62,851
Legal services 0
Materials 391,707 70,359 (289,672) 29,516
Office expense & supplies 248 (7,193) 58,624 48,345
Other 4,393 57,436 416 3,162
Outside services 369,073 143,619 (213,980) 83,245
Professional services 1,073,857 (99,264) 60,575 111,138
Rent-equipment 73,365 1,759 42,453 19,203
Rent-office/buildings 260,103 307,269 102,221 (94,110)
Supplies-processing (15,755)
Taxes 79,546 23,100 23,143 23,656
Telephone 123,714 34,394 36,810 17,060
Transportation 3,355 20,000 (10,055)
Travel & entertainment 20,585 50,206 55,770 61,786
Utilities 200,831 3,345 39,704 (16,525)
--------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 5,902,094 1,685,674 863,244 1,169,498
--------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 (4,030,611) (1,685,674) (863,244) (731,125)
--------------------------------------------------------------------
INTEREST EXPENSE 90,855 90,960 71,976
DEPRECIATION AND AMORTIZATION 605,724 607,511 607,510 594,069
INCOME TAX EXPENSE (BENEFIT) 0
REORGANIZATION EXPENSE 440,000 428,000 343,147
OTHER (INCOME) EXPENSE 0
(GAIN) LOSS ON SALE OF ASSETS 0 30,724
--------------------------------------------------------------------
NET INCOME (LOSS) 0 (4,836,335) (2,824,040) (1,989,714) (1,771,041)
====================================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
4/30/98 5/31/98 6/30/98
-------------------------------------------------------
<S> <C> <C> <C> <C>
NET REVENUE (INCOME) 1,745,985 242,662
-------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 558,048 441,216 510,654
Less: Salaries & wages capitalized in fixed assets (10,791)
Benefits 174,882 157,929 168,893
Bad debt expense
Cost of goods sold
Decontamination & disposal 18,888 18,888 18,888
Disposal costs-secondary wastes (61,832) (12,447) 178,673
Financing costs 7,330
Insurance 62,851 62,851 55,414
Legal services 45,265 30,000
Materials 93,000 112,049 65,615
Office expense & supplies 13,330 (2,181) 32,011
Other 1,959 951 1,498
Outside services 57,665 195,970 138,761
Professional services (142,485) 93,754 31,702
Rent-equipment 5,635 13,116 54,997
Rent-office/buildings 126,063 82,598 14,000
Supplies-processing
Taxes 69,948 59,400 143,775
Telephone 30,525 46,536 20,967
Transportation 13,981 16,760
Travel & entertainment 85,638 86,258 14,408
Utilities 44,973 36,887 49,235
-------------------------------------------------------
TOTAL COST OF GOODS SOLD 1,153,069 1,445,009 1,536,821 0
-------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 592,916 (1,202,347) (1,536,821) 0
-------------------------------------------------------
INTEREST EXPENSE 129,317 132,979 126,273
DEPRECIATION AND AMORTIZATION 605,304 612,072 608,409
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE 387,043 306,803 319,300
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-------------------------------------------------------
NET INCOME (LOSS) (528,748) (2,254,201) (2,590,803) 0
=======================================================
</TABLE>
<PAGE> 8
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 6/30/98
-------
<TABLE>
<CAPTION>
TOTAL
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (4,636,335) (4,636,335) (2,824,040) (1,989,714)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 605,724 605,724 607,510 607,508
Decrease (Increase)-Accounts Receivable (123,304) (123,304) 429,050 98,866
Decrease (Increase)-Inventories 1,199,550 1,199,550 0 0
Decrease (Increase)-Prepaid Expenses (282,112) (282,112) (171,034) (335,276)
Decrease (Increase)-Other Assets 13,596 13,596 (95,902) (33,519)
Increase (Decrease)-Pre Petition Liabilities (291,946) (291,946) (2,789,056) 4,134,919
Increase (Decrease)-Post Petition Liabilities 1,892,945 1,892,945 (2,133,688) 503,681
Increase (Decrease)-Deferred Revenue (1,809,090) (1,809,090) (177,379) (20,833)
-----------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 (3,430,972) (3,430,972) (7,154,539) 2,965,632
-----------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (25,146) (25,146) (140,860) (61,915)
Sale of Net Fixed Assets
-----------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 (25,146) (25,146) (140,860) (61,915)
-----------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 5,260,000 5,260,000 5,540,000 (3,800,000)
Increase (Decrease)-Shareholder Valuations 15,656 15,656 (4,772) 15,110
Purchase of Treasury Stock-Preferred Shares
-----------------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 5,275,656 5,275,656 5,535,228 (3,784,890)
-----------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 1,819,538 1,819,538 (1,760,171) (881,173)
Cash and Cash Equivalents at Beginning of Period 4,893,869 4,893,869 6,713,407 4,953,236
-----------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 6,713,407 6,713,407 4,953,236 4,072,063
=================================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98 6/30/98
------------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (1,771,041) (528,748) (2,254,201) (2,590,803)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 570,139 605,304 611,966 608,304
Decrease (Increase)-Accounts Receivable (431,963) 683,820 (151,697) 652,392
Decrease (Increase)-Inventories 0 0 0 0
Decrease (Increase)-Prepaid Expenses (215,154) (519,072) 847,658 452,336
Decrease (Increase)-Other Assets (558,244) (89,406) (76,086) (34,700)
Increase (Decrease)-Pre Petition Liabilities (271,163) 779,874 216,609 (364,367)
Increase (Decrease)-Post Petition Liabilities (832,693) (1,511,301) (749,701) (69,458)
Increase (Decrease)-Deferred Revenue (20,833) (235,286) (82,456) (127,643)
-----------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (3,530,952) (814,815) (1,637,908) (1,473,939)
-----------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (73,286) (39,458) (699,426) (15,916)
Sale of Net Fixed Assets
-----------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (73,286) (39,458) (699,426) (15,916)
-----------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 2,300,000 1,500,000
Increase (Decrease)-Shareholder Valuations 6,647 6,433 6,647 4,177
Purchase of Treasury Stock-Preferred Shares
-----------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 6,647 6,433 2,306,647 1,504,177
-----------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,597,591) (847,840) (30,687) 14,322
Cash and Cash Equivalents at Beginning of Period 4,072,063 474,472 (373,368) (404,055)
-----------------------------------------------------
Cash and Cash Equivalents at End of Period 474,472 (373,368) (404,055) (389,733)
=====================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 6/30/98
--------------------
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
---------------------------------------------- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 6/12, & 6/26/98 17,308 11,870 4,815 4,815
Eugene Berman, VP, Regul, Legal, & Extern Aff 6/12, & 6/26/98 10,722 9,122 395 395
F. Gordon Bitter, CEO & CFO, Director 6/12, & 6/26/98 22,011 13,931 6,681 6,681
Steven Brien, VP, Chemical Sales & Marketing 6/12, & 6/26/98 12,308 7,798 3,636 3,636
Victor E. Gatto, Jr., VP, Government Markets 6/12, & 6/26/98 7,823 7,474 114 114
David Hoey, V,P Business Development 6/12, & 6/26/98 13,165 9,293 2,998 2,998
F. James Howie, III, VP, Procurement 6/12, & 6/26/98 10,668 6,667 2,391 2,391
Ethan E. Jacks, VP, General Counsel, Secretary 6/12, & 6/26/98 13,551 8,601 3,147 3,147
James E. Johnston, VP, Technical Development 6/12, & 6/26/98 11,358 7,101 2,576 2,576
Randall Jones, Assistant Secretary 6/12, & 6/26/98 9,303 5,999 1,862 1,862
Christopher Nagel, Chief Technology Officer 6/12, & 6/26/98 12,395 7,751 2,912 2,912
Charles W. Shaver, President & COO, Director 6/12, & 6/26/98 20,472 12,951 5,260 5,260
----------------------------------------------
TOTAL EXECUTIVE PAYROLL 161,084 108,558 36,787 36,787
==============================================
</TABLE>
2. INSURANCE
Is Workers' Compensation and other insurance in effect? Yes
-------
Are payments current? Yes
-------
If any policy has lapsed, been replaced or renewed, state so in the
schedule below. Attach a copy of the new policy's binder or coverage
page.
<TABLE>
<CAPTION>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
</TABLE>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
PAGE 2
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
MMT MMT MMT ALEX OPPEN- ESCROW AT
OPERATING PAYROLL PAYROLL BROWN HEIMER ROPES TOTAL
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ALEX OPPEN- ROPES &
BANK NAME U.S. TRUST U.S. TRUST NATIONSBANK BROWN HEIMER GRAY
ACCOUNT NUMBER 1100937836 1100937844 3001270655 210-71007 033-82238
BEGINNING BOOK BALANCE (423,058) 0 19,003 0 0 0 (404,055)
PLUS: Deposits-Collections of A/R 1,011,316 1,011,316
Other Receipts 103,340 103,340
Loan Advances 1,500,000 1,500,000
0
LESS: Disbursements (4,980,389) (4,980,389)
Payroll (602,945) (602,945)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments 0
Transfers In (Out) 2,383,000 600,000 2,983,000
0
-------------------------------------------------------------------------------------------
ENDING BOOK BALANCE (405,791) 0 16,058 0 0 0 (389,733)
===========================================================================================
</TABLE>
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professional and payments on
Pre-petition debts in the schedule below.
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
------------------------------------------------ -------------------------------------
<S> <C> <C> <C>
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
Bank of New York (Creditors Committee Expenses) 535 6/18/98 42505
Blackstone Group 129,924 6/18/98 42510
Cameron & Barkley (Creditors Committee Expenses) 1,449 6/18/98 42519
Celanese (Creditors Committee Expenses) 3,135 6/18/98 42523
Cohn & Kelakos, LLP 189,307 6/18/98 42529
Goodwin, Procter & Hoar 298,101 6/18/98 42547
KPMG Peat Marwick 98,959 6/18/98 42572
Latham & Watkins 31,335 6/18/98 42576
Lockheed Martin (Creditors Committee Expenses) 3,647 6/18/98 42579
Fluor Daniel (Creditors Committee Expenses) 1,340 6/18/98 42635
-------
757,732
=======
PRE-PETITION DEBTS
-------
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
=======
</TABLE>
<PAGE> 11
INSURANCE EXPIRATION STATEMENT EXHIBIT D
<TABLE>
<CAPTION>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SEE ATTACHED
</TABLE>
I declare under penalty of perjury that the information provided on the
attachments hereto is true and correct to the best of my knowledge and
belief.
Date: 7/23/98
-----------
Molten Metal Technology, Inc.
By: /s/ F. Gordon Bitter
--------------------------------
F. Gordon Bitter
Chief Executive Officer
MMT of Tennessee, Inc.
By: /s/ F. Gordon Bitter
--------------------------------
F. Gordon Bitter
Chief Executive Officer
M4 Environmental, L.P.
By: /s/ F. Gordon Bitter
--------------------------------
M4 Environmental Management, Inc.
General Partner
By: /s/ F. Gordon Bitter
--------------------------------
F. Gordon Bitter
Vice President
MMT Federal Holdings, Inc.
By: /s/ F. Gordon Bitter
--------------------------------
F. Gordon Bitter
Vice President
<PAGE> 12
Mollen Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
===================================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
===================================================================================================================================
<S> <C> <C> <C> <C>
Commerce & Industry Insurance Co. General Liability Aon $1,000,000 340-94-76
70 Pine Street Automobile Liability Aon $1,000,000 766-56-11
New York, NY 10270 Excess Liability - 1st layer Aon $20,000,000 606-23-31
excess of $1M
New Hampshire Insurance Co. Workers Compensation Aon Statutory WC588-59-75
70 Pine Street Workers Compensation - CA Aon Statutory WC588-59-77
New York NY 10270 Employers' Liability Aon $1,000,000 WC588-59-75
and -77[CA]
American International Specialty Lines Pollution Liability - MA/TN Aon $3,000,000 8199951
Insurance Co. Pollution Liability - TX Aon $1,000,000 8199950
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company Fidelity Aon $500,000 751-118812-98
P.O. Box 91394 Fiduciary Aon $2,000,000 751-118834-98
Chicago, IL 60693
Executive Risk Indemnity Company Directors & Officers Liability Aon $10,000,000 751-091628-98
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability Aon $1,000,000 PST 00 9648288
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. Property Aon $147,000,000 CC626
Allendale Park Blanket
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property J&H/M&M $45,000,000 98262
Town Center Nuclear Liability Facility Form - TN J&H/M&M $50,000,000 NF-0338
<CAPTION>
=============================================================================================================================
CARRIER NAME & ADDRESS TYPE EXPIRATION PREMIUM PAID
DATE THRU
=============================================================================================================================
<S> <C> <C> <C> <C>
Commerce & Industry Insurance Co. General Liability 12/3/98 $53,000 Current
70 Pine Street Automobile Liability 12/3/98 $3,540 Current
New York, NY 10270 Excess Liability - 1st layer 12/3/98 $43,185 Current
New Hampshire Insurance Co. Workers Compensation 12/3/98 $111,250 Current
70 Pine Street Workers Compensation - CA 12/3/98 $753 Current
New York NY 10270 Employers' Liability 12/3/98 inclu. Current
American International Specialty Lines Pollution Liability - MA/TN 12/3/98 $28,342 Current
Insurance Co. Pollution Liability - TX 12/3/98 $16,919 Current
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company Fidelity 5/9/99 $6,000 Current
P.O. Box 91394 Fiduciary 5/9/99 $6,000 Current
Chicago, IL 60693
Executive Risk Indemnity Company Directors & Officers Liability 1/19/99 $350,000 Current
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability 2/1/99 $2,000 Current
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. Property 12/2/99 $170,000 Current
Allendale Park
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property 1/1/99 $97,500 Current
Town Center Nuclear Liability Facility Form - TN 12/31/98 $124,215 Current
</TABLE>
Page 12
<PAGE> 13
Mollen Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
================================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
================================================================================================================================
<S> <C> <C> <C> <C>
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000 NW-0235
West Hartford, CT 06107 Shared Agg.
Nuclear Supplier's & Transp. J&H/M&M $ 15,000,000 NS-0539
Nuclear Liability Facility Form - SC J&H/M&M $ 10,000,000 NF-0329
Nuclear Foreign Supplier's & Transp. J&H/M&M $ 10,000,000 TBD
Master Worker Certificate - SC J&H/M&M $200,000,000 NW-0237
Shared Agg.
Nuclear Facility Liability - Comm. Park J&H/M&M $ 10,000,000 NF-0337
Master Worker Certificate - Comm. Park J&H/M&M $200,000,000 NW-0234
Shared Agg.
American International Specialty Pollution Legal and Closure/Post Closure J&H/M&M $ 3,000,000 8183013
Lines Ins. Co. Pollution Legal
Harborside Financial Center $ 3,400,000
401 Plaza 3 Closure
Jersey City, NJ 07311
<CAPTION>
===================================================================================================================================
CARRIER NAME & ADDRESS TYPE EXPIRATION PREMIUM PAID
DATE THRU
===================================================================================================================================
<S> <C> <C> <C> <C>
29 South Main Street Master Worker Certificate - TN 12/31/98 $ 550 Not yet invoiced
West Hartford, CT 06107
Nuclear Supplier's & Transp. 12/31/98 $ 8,670 Current
Nuclear Liability Facility Form - SC 12/31/98 $ 13,590 Current
Nuclear Foreign Supplier's & Transp. 12/31/98 TBD Based on Foreign Sales
Master Worker Certificate - SC 12/31/98 $ 550 Not yet invoiced
Nuclear Facility Liability - Comm. Park 12/31/98 $ 39,568 Current
Master Worker Certificate - Comm. Park 12/31/98 $ 550 Not yet invoiced
American International Specialty Pollution Legal and Closure/Post Closure 10/15/00 $ 94,400 Current
Lines Ins. Co. Poll. Legal
Harborside Financial Center 12/7/00 $425,000 Current
401 Plaza 3 Closure
Jersey City, NJ 07311
</TABLE>
Note: The premium for the Pollution Legal/Closure policy (AISLIC no. 8183013) is
billed in 5 annual installments of $19,280 (Pollution Legal) and $85,000
(Closure). To date, the first three installments are paid in full. The remaining
installments come due on the anniversary date. Thus, the remaining installments
for 12/15/98 and 1999 for Pollution and for 1/4/99 and 2000 for Closure, are
unbilled and unpaid.
Page 13
<PAGE> 14
Mollen Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
=================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
=================================================================================================================================
<S> <C> <C> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 6/1-6/30/98 $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 6/1-6/30/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 6/1-6/30/98 $ 1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 6/1-6/30/98 $ 1,185 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT 6/1-6/30/98 $10,960 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 6/1-6/30/98 $ 8,231 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 6/1-6/30/98 $50,000 Current
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
</TABLE>
Page 14 of 15
<PAGE> 15
Mollen Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
============================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
============================================================================================================================
<S> <C> <C> <C> <C> <C>
UNUM Life Insurance Employee Funded Long Term Disability MMT 6/1-6/30/98 $1,951 Current
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 6/1-6/30/98 $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
Page 15 of 15
<PAGE> 1
EXHIBIT 99.3
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: MMT OF TENNESSEE, INC. CASE NO.: 97-21386-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
MONTHLY OPERATING REPORT FOR MONTH ENDING: 6/30/98
-------
COMES NOW, MMT OF TENNESSEE, INC., Debtor in Possession, and hereby its Monthly
Operating Report for the period commencing 6/1/98 and ending 6/30/98 as shown by
the report and exhibits consisting of 10 pages and containing the following, as
indicated:
X Monthly Reporting Questionnaire (Attachment 1)
---------------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
---------------
X Summary of Accounts Receivable (Form OPR-3)
---------------
X Schedule of Post-Petition Liabilities (Form OPR-4)
---------------
X Income Statement (Form OPR-5)
---------------
X Statement of Sources and Uses of Cash (Form OPR-6)
---------------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 7/23/98 DEBTOR-IN-POSSESSION
-------
By: /s/ F. Gordon Bitter
----------------------------------------------
Name & Title: F. Gordon Bitter, Vice President
MMT of Tennessee, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: MMT OF TENNESSEE, INC. CASE NO.: 97-21386-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices, this operating
report accounts for all cash transfers among the Debtor and its affiliates and
allocates some, but not all, of the expenses borne by one affiliate for the
benefit of another or the others. In the absence of a decision for substantive
consolidation, the Debtor will develop an appropriate allocation of all
expenses among the affiliated entities.
<PAGE> 3
FORM OPR-1
COMPARATIVE BALANCE SHEETS
CASE NAME: MMT OF TENNESSEE, INC.
CASE NO.: 97-21386-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 66,358 1,007,375 2,277,256 1,077,633 1,212,651 1,206,564 587,898 943,541
Other negotiable
instruments
(i.e. CD's,
Treasury
Bills, Etc.)
Accounts
Receivable-
Trade,
Net (OPR-3) 6,494,603 6,876,561 6,001,822 6,051,677 6,624,034 7,385,716 7,136,438 4,608,028
Less: allowance
for doubtful
accounts (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000) (150,000)
Accounts
Receivable-Other 291,141 156,625 207,867 693,516 692,222 1,203,183 1,096,325 247,298
Inventory, at cost 1,610,203 1,167,014 1,148,718 1,120,419 1,369,641 1,237,485 1,500,031 1,559,407
Prepaid expenses 30,357 155,838 145,218 128,915 107,515 97,109 71,069 (18,849)
Deposits 57,500 57,500 76,925 79,120 81,446 81,446 81,446 131,446
Other:
Restricted Cash
Collateral
Deposits 215,520 215,520 215,520 215,520 215,520 215,520 215,520 215,520
-----------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 8,615,682 9,486,433 9,923,326 9,216,800 10,153,029 11,277,023 10,538,727 7,536,391
-----------------------------------------------------------------------------------------------------
PROPERTY, PLANT AND
EQUIPMENT, AT COST 61,645,241 61,716,593 61,880,581 62,238,580 62,407,138 62,689,022 64,521,062 66,164,567
Less: Accumulated
Depreciation (2,104,309) (2,281,673) (2,598,650) (2,915,627) (3,240,046) (3,557,383) (3,899,284) (4,211,021)
-----------------------------------------------------------------------------------------------------
NET PROPERTY, PLANT
AND EQUIPMENT 59,540,932 59,434,920 59,281,931 59,322,953 59,167,092 59,131,639 60,621,778 61,953,546
-----------------------------------------------------------------------------------------------------
OTHER ASSETS (itemized
if value exceeds
10% of "total assets")
Intangible Assets 12,508,628 12,508,628 12,508,630 12,508,629 12,508,629 12,508,630 12,508,629 12,508,629
Less: Accumulated
Amortization (2,344,293) (2,509,114) (2,665,588) (2,822,059) (2,978,531) (3,135,004) (3,291,475) (3,447,947)
-----------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 10,164,335 9,999,514 9,843,042 9,686,570 9,530,098 9,373,626 9,217,154 9,060,682
-----------------------------------------------------------------------------------------------------
TOTAL ASSETS 78,320,949 78,920,867 79,048,299 78,226,323 78,850,219 79,782,288 80,377,659 78,550,619
=====================================================================================================
</TABLE>
<PAGE> 4
FORM OPR-2
COMPARATIVE BALANCE SHEETS
CASE NAME: MMT OF TENNESSEE, INC.
CASE NO.: 97-21386-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES
POST PETITION
LIABILITIES
Secured Debt
(See Form OPR-4)
Unsecured Debt-
Intercompany
Obligations due
to cash transfers
in Post Petition
Operations 1,209,386 2,137,381 1,765,503 2,973,763 4,181,934 5,742,335 6,271,352
Unsecured Debt-
Obligations
incurred in
Post Petition
Operations
(See Form OPR-4) 35,238 306,240 2,851,654 2,945,864 3,063,958 2,757,770 4,683,116
-------------------------------------------------------------------------------------------------------
TOTAL POST
PETITION LIABILITIES 0 1,244,624 2,443,621 4,617,157 5,919,627 7,245,892 8,500,105 10,954,468
PRE PETITION
INTERCOMPANY
LIABILITIES 90,708,931 90,708,931 90,708,931 90,708,931 90,708,931 90,708,931 90,708,931 90,708,931
DEFERRED
REVENUE/DEFERRED
INCOME 1,226,727 1,280,885 1,048,733 1,056,514 1,056,514 1,459,677 1,388,645 1,315,060
TOTAL OTHER PRE
PETITION LIABILITIES 2,666,165 2,274,081 2,274,081 294,367 285,142 138,445 (328,660) (3,458,603)
-------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 94,601,823 95,508,521 96,475,366 96,676,969 97,970,214 99,552,945 100,269,021 99,519,856
-------------------------------------------------------------------------------------------------------
SHAREHOLDERS'
EQUITY (DEFICIT)
Preferred Stock
Common Stock 10 10 10 10 10 10 10 10
Paid in Capital
Valuation Allowance
Dividends Paid
Treasury Stock
Deferred Compensation
Retained Earnings
Through Filing Date (16,280,884) (16,280,884) (16,280,884) (16,280,884) (16,280,884) (16,280,884) (16,280,884) (16,280,884)
Post Filing Date (306,780) (1,146,193) (2,169,772) (2,839,121) (3,489,783) (3,610,488) (4,688,363)
-------------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS'
EQUITY (DEFICIT) (16,280,874) (16,587,654) (17,427,067) (18,450,646) (19,119,995) (19,770,657) (19,891,362) (20,969,237)
-------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY 78,320,949 78,920,867 79,048,299 78,226,323 78,850,219 79,782,288 80,377,659 78,550,619
=======================================================================================================
</TABLE>
<PAGE> 5
FORM OPR-3
SUMMARY OF ACCOUNTS RECEIVABLE
CASE NAME: MMT OF TENNESSEE, INC.
CASE NO.: 97-21386-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF
FILING: 12/3/97 6,494,603 3,298,967 877,780 755,577 1,562,279
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
6,344,603 3,298,967 877,780 755,577 1,412,279
=================================================================
MONTH: 12/31/97 6,876,561 1,785,407 2,792,314 519,172 1,779,668
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
6,726,561 1,785,407 2,792,314 519,172 1,629,668
=================================================================
MONTH: 1/31/98 6,001,822 1,290,680 1,267,373 1,458,561 1,985,208
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
5,851,822 1,290,680 1,267,373 1,458,561 1,835,208
=================================================================
MONTH: 2/28/98 6,051,677 1,308,292 1,019,381 572,967 3,151,037
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
5,901,677 1,308,292 1,019,381 572,967 3,001,037
=================================================================
MONTH: 3/31/98 6,624,034 2,568,080 1,505,814 345,094 2,205,046
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
6,474,034 2,568,080 1,505,814 345,094 2,055,046
=================================================================
MONTH: 4/30/98 7,385,716 3,155,026 851,867 791,510 2,587,313
Allowance for doubtful accounts (150,000) (150,000)
-----------------------------------------------------------------
7,235,716 3,155,026 851,867 791,510 2,437,313
=================================================================
MONTH: 5/31/98 7,485,882 1,810,443 2,879,549 361,683 2,434,207
Allowance for doubtful accounts (150,000)
-----------------------------------------------------------------
7,485,882 1,810,443 2,879,549 361,683 2,284,207
=================================================================
MONTH: 6/30/98 4,608,028 1,863,113 1,238,027 101,872 1,405,016
Allowance for doubtful accounts (150,000)
-----------------------------------------------------------------
4,608,028 1,863,113 1,238,027 101,872 1,255,016
=================================================================
</TABLE>
<PAGE> 6
FORM OPR-4
SCHEDULE OF POST PETITION LIABILITIES
CASE NAME: MMT OF TENNESSEE, INC.
CASE NO.: 97-21386-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
------------------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
------------------------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
ACCRUED INTEREST PAYABLE
------------------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0 0 0
------------------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable
(see attached schedules)
Payroll withholdings
Accrued Payroll
Accrued Disposal Costs 4,683,116
Accrued expenses-Estimated liability
incurred, but not invoiced
as of the end of the period.
------------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 4,683,116 0 0 0 0
------------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 4,683,116 0 0 0 0
======================================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
<TABLE>
<CAPTION>
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET REVENUE (INCOME) 2,232,158 1,797,407 2,069,601 2,205,371
----------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 521,313 485,588 383,435 527,591
Less: Salaries & wages capitalized in fixed assets (121,795) (120,000)
Benefits 72,866 91,573 106,745 85,236
Bad debt expense 18,625
Cost of goods sold
Decontamination & disposal 7,870 7,870 7,870 7,870
Disposal costs-secondary wastes (378) 205,018 431,112 522,653
Financing costs
Insurance 9,905 20,331 20,331 20,331
Legal services
Materials 752,418 795,840 709,052 547,077
Office expense & supplies 28,331 12,759 2,792
Other 5,866 1,064 1,878
Outside services 444,939 299,525 498,275
Professional services 126,443 159,132 284,046 386,411
Rent-equipment 31,509 37,565 45,179 39,401
Rent-office/buildings 4,649 10,000 5,000
Supplies-processing 18,515 15,755
Taxes 8,000 17,119 8,000 10,393
Telephone 10,724 11,773 2,000 260
Transportation 107,117 73,218 165,645 128,791
Travel & entertainment 22,923 21,054 24,819 48,515
Utilities 33,512 5,474 34,099 64,629
----------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 2,196,816 2,163,371 2,619,431 2,393,828
----------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 35,342 (365,964) (549,830) (188,457)
----------------------------------------------------------------------
INTEREST EXPENSE 50
DEPRECIATION AND AMORTIZATION 342,185 473,449 473,449 480,892
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE 250
OTHER (INCOME) EXPENSE (63)
(GAIN) LOSS ON SALE OF ASSETS
----------------------------------------------------------------------
NET INCOME (LOSS) 0 (306,780) (839,413) (1,023,579) (669,349)
======================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
-----------
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
4/30/98 5/31/98 6/30/98
-------------------------------------------------------
<S> <C> <C> <C>
NET REVENUE (INCOME) 2,721,396 2,960,820 1,367,650
-------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 490,006 630,634 622,442
Less: Salaries & wages capitalized in fixed assets (160,080) (132,089)
Benefits 100,378 116,823 123,451
Bad debt expense
Cost of goods sold
Decontamination & disposal 7,870 7,870 7,870
Disposal costs-secondary wastes 26,866 846,871 63,758
Financing costs
Insurance 20,331 12,206 20,331
Legal services
Materials 905,582 466,187 553,346
Office expense & supplies (1,278) 88,123 13,243
Other 353 265 182
Outside services 745,567 187,898 385,401
Professional services 330,022 140,188
Rent-equipment 30,622 36,168 38,814
Rent-office/buildings 10,000 5,000 6,598
Supplies-processing
Taxes 18,768 40,250 40,898
Telephone 1,529 8,904 10,948
Transportation 138,760 77,439 160,782
Travel & entertainment 37,894 49,869 42,935
Utilities 34,880 40,769 9,129
-------------------------------------------------------
TOTAL COST OF GOODS SOLD 2,898,150 2,595,384 1,968,039 0
-------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (176,754) 365,436 (600,389) 0
-------------------------------------------------------
INTEREST EXPENSE 100 50 50
DEPRECIATION AND AMORTIZATION 473,808 486,091 477,436
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-------------------------------------------------------
NET INCOME (LOSS) (650,662) (120,705) (1,077,875) 0
=======================================================
</TABLE>
<PAGE> 8
STATEMENTS OF SOURCES AND USES OF CASH FORM OPR-5
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
<TABLE>
<CAPTION>
TOTAL TOTAL TOTAL
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (306,780) (306,780) (839,413) (1,023,579)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 342,185 342,185 473,449 473,449
Decrease (Increase)-Accounts Receivable (247,442) (247,442) 823,497 (535,504)
Decrease (Increase)-Inventories 443,189 443,189 18,296 28,299
Decrease (Increase)-Prepaid Expenses (125,481) (125,481) 10,620 16,303
Decrease (Increase)-Other Assets 0 0 (19,427) (2,194)
Increase (Decrease)-Pre Petition Liabilities (See Note) (392,084) (392,084) 0 (1,979,714)
Increase (Decrease)-Deferred revenue 54,158 54,158 (232,150) 7,780
Increase (Decrease)-Post Petition Liabilities 1,244,624 1,244,624 1,198,997 2,173,536
-------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 1,012,369 1,012,369 1,433,869 (841,624)
-------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (71,352) (71,352) (163,988) (357,999)
Sale of Net Fixed Assets
-------------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 (71,352) (71,352) (163,988) (357,999)
-------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0
Increase (Decrease)-Shareholder Valuations 0 0 0 0
Purchase of Treasury Stock-Preferred Shares
-------------------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0 0 0 0
-------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 941,017 941,017 1,269,881 (1,199,623)
Cash and Cash Equivalents at Beginning of Period 66,358 66,358 1,007,375 2,277,256
-------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 1,007,375 1,007,375 2,277,256 1,077,633
===================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
----------
TOTAL
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98 6/30/98
-------------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (669,349) (650,662) (120,705) (1,077,875)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 480,892 473,808 498,372 468,209
Decrease (Increase)-Accounts Receivable (571,063) (1,272,643) 356,136 3,377,437
Decrease (Increase)-Inventories (249,222) 132,156 (262,546) (59,376)
Decrease (Increase)-Prepaid Expenses 21,400 10,406 26,040 89,918
Decrease (Increase)-Other Assets (2,326) 2 2 (49,999)
Increase (Decrease)-Pre Petition Liabilities (See Note) (9,225) (146,697) (467,105) (3,129,943)
Increase (Decrease)-Deferred revenue (1) 403,162 (71,033) (73,586)
Increase (Decrease)-Post Petition Liabilities 1,302,470 1,326,265 1,254,213 2,454,363
-------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 303,576 275,797 1,213,374 1,999,148
-------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (168,558) (281,884) (1,832,040) (1,643,505)
Sale of Net Fixed Assets
-------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (168,558) (281,884) (1,832,040) (1,643,505)
-------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0
Increase (Decrease)-Shareholder Valuations 0 0 0 0
Purchase of Treasury Stock-Preferred Shares
-------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0 0 0
-------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 135,018 (6,087) (618,666) 355,643
Cash and Cash Equivalents at Beginning of Period 1,077,633 1,212,651 1,206,564 587,898
-------------------------------------------------------
Cash and Cash Equivalents at End of Period 1,212,651 1,206,564 587,898 943,541
=======================================================
</TABLE>
NOTE: THE CHANGE IN PRE-PETITION LIABILITIES OCCURS AS A RESULT OF
ADJUSTMENTS MADE TO VARIOUS ACCRUALS AFTER RECONCILING THE
ACCRUALS TO CURRENT ESTIMATES OF THE LIABILITIES. THERE WAS NO
CASH EXPENDED AND THE ADJUSTMENTS DO NOT REFLECT THE SATISFACTION
OF ANY BANKRUPTCY CLAIMS THAT HAVE BEEN MADE AGAINST THE
COMPANY'S ESTATE.
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 6/30/98
--------------------
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
-------------------------- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
THE FOLLOWING OFFICERS OF THIS DEBTOR ARE EMPLOYEES AND OFFICERS OF MOLTEN METAL TECHNOLOGY, INC. ("MMT"). THESE OFFICERS
DO NOT RECEIVE COMPENSATION FROM THIS DEBTOR, BUT ARE COMPENSATED MMT, WHICH HAS DISCLOSED SUCH COMPENSATION IN ITS
MONTHLY OPERATING REPORT (CASE NUMBER 97-21385-CJK).
F. Gordon Bitter, CEO & CFO, Director
Ethan E. Jacks, VP, General Counsel, Secretary
Eugene Berman, Assistant Secretary
Charles W. Shaver, President & COO, Director
Randall Jones, Assistant Secretary
H. W. Arrowsmith, VP Nuclear Sales & Marketing
----------------------------------------------------------
TOTAL EXECUTIVE PAYROLL 0 0 0 0
==========================================================
</TABLE>
2. INSURANCE
Is Workers' Compensation and other insurance in effect? Yes
--------
Are payments current? Yes
--------
If any policy has lapsed, been replaced or renewed, state
so in the schedule below. Attach a copy of the new policy's
binder or coverage page.
<TABLE>
<CAPTION>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
</TABLE>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
---------------------------------------------
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
TENNESSEE TENNESSEE TENNESSEE
OPERATING PAYROLL PAYROLL TOTAL
-------------------------------------------------------------
BANK NAME U.S. TRUST U.S. TRUST NATIONSBANK
ACCOUNT NUMBER 110937851 1100937869 3001270846
<S> <C> <C> <C> <C>
BEGINNING BOOK BALANCE 558,537 0 29,361 587,898
PLUS: Deposits-Collections of A/R 3,958,252 3,958,252
Other Receipts 0
Loan Advances 0
0
LESS: Disbursements (177,677) (177,677)
Payroll (441,932) (441,932)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments 0
Transfers In (Out) (3,408,000) 425,000 (2,983,000)
0
-------------------------------------------------------------
ENDING BOOK BALANCE 931,112 0 12,429 943,541
=============================================================
</TABLE>
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professional and payments on
Pre-petition debts in the schedule below.
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
-------------------------- ----------------------------------------------
<S> <C> <C> <C>
Professionals (Attorneys,
Accountants, etc.):
NONE
===============
0
===============
PRE-PETITION DEBTS
NONE
===============
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
===============
</TABLE>
<PAGE> 11
INSURANCE EXPIRATION STATEMENT Exhibit D
<TABLE>
<CAPTION>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SEE ATTACHED
</TABLE>
I declare under penalty of perjury that the information provided on
the attachments hereto is true and correct to the best of my knowledge
and belief.
Date: 7/23/98
-----------------
MOLTEN METAL TECHNOLOGY, INC.
By: /s/ F. Gordon Bitter
------------------------------------
F. Gordon Bitter
Chief Executive officer
MMT OF TENNESSEE, INC.
By: /s/ F. Gordon Bitter
------------------------------------
F. Gordon Bitter
Vice President
M4 ENVIRONMENTAL, L.P.
By: /s/ F. Gordon Bitter
------------------------------------
M4 Environmental Management, Inc.
General Partner
By: /s/ F. Gordon Bitter
------------------------------------
F. Gordon Bitter
Vice President
MMT FEDERAL HOLDINGS, INC.
By: /s/ F. Gordon Bitter
------------------------------------
F. Gordon Bitter
Vice President
<PAGE> 12
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
====================================================================================================================================
<S> <C> <C> <C> <C>
Commerce & Industry Insurance Co. General Liability Aon $1,000,000 340-94-76
70 Pine Street Automobile Liability Aon $1,000,000 766-56-11
New York, NY 10270 Excess Liability - 1st layer Aon $20,000,000 606-23-31
excess of $1M
New Hampshire Insurance Co. Workers Compensation Aon Statutory WC588-59-75
70 Pine Street Workers Compensation - CA Aon Statutory WC588-59-77
New York NY 10270 Employers' Liability Aon $1,000,000 WC588-59-75
and -77[CA]
American International Specialty Lines Pollution Liability - MA/TN Aon $3,000,000 8199951
Insurance Co. Pollution Liability - TX Aon $1,000,000 8199950
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company Fidelity Aon $500,000 751-118812-98
P.O. Box 91394 Fiduciary Aon $2,000,000 751-118834-98
Chicago, IL 60693
Executive Risk Indemnity Company Directors & Officers Liability Aon $10,000,000 751-091628-98
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability Aon $1,000,000 PST 00 9648288
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. Property Aon $147,000,000 CC626
Allendale Park Blanket
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property J&H/M&M $45,000,000 98262
Town Center Nuclear Liability Facility Form - TN J&H/M&M $50,000,000 NF-0338
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
==============================================================================================
<S> <C> <C> <C>
Commerce & Industry Insurance Co. 12/3/98 $53,000 Current
70 Pine Street 12/3/98 $3,540 Current
New York, NY 10270 12/3/98 $43,185 Current
New Hampshire Insurance Co. 12/3/98 $111,250 Current
70 Pine Street 12/3/98 $753 Current
New York NY 10270 12/3/98 inclu. Current
American International Specialty Lines 12/3/98 $28,342 Current
Insurance Co. 12/3/98 $16,919 Current
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company 5/9/99 $6,000 Current
P.O. Box 91394 5/9/99 $6,000 Current
Chicago, IL 60693
Executive Risk Indemnity Company 1/19/99 $350,000 Current
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies 2/1/99 $2,000 Current
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. 12/2/99 $170,000 Current
Allendale Park
Johnston, RI 02919
American Nuclear Insurers 1/1/99 $97,500 Current
Town Center 12/31/98 $124,215 Current
</TABLE>
Page 12
<PAGE> 13
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
====================================================================================================================================
<S> <C> <C> <C> <C>
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000 NW-0235
West Hartford, CT 06107 Shared Agg.
Nuclear Supplier's & Transp. J&H/M&M $15,000,000 NS-0539
Nuclear Liability Facility Form - SC J&H/M&M $10,000,000 NF-0329
Nuclear Foreign Supplier's & Transp. J&H/M&M $10,000,000 TBD
Master Worker Certificate - SC J&H/M&M $200,000,000 NW-0237
Shared Agg.
Nuclear Facility Liability - Comm. Park J&H/M&M $10,000,000 NF-0337
Master Worker Certificate - Comm. Park J&H/M&M $200,000,000 NW-0234
Shared Agg.
American International Specialty Pollution Legal and Closure/Post Closure J&H/M&M $3,000,000 8183013
Lines Ins. Co. Pollution Legal
Harborside Financial Center $3,400,000
401 Plaza 3 Closure
Jersey City, NJ 07311
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
==============================================================================================
<S> <C> <C> <C>
29 South Main Street 12/31/98 $550 Not yet invoiced
West Hartford, CT 06107
12/31/98 $8,670 Current
12/31/98 $13,590 Current
12/31/98 TBD Based on Foreign Sales
12/31/98 $550 Not yet invoiced
12/31/98 $39,568 Current
12/31/98 $550 Not yet invoiced
American International Specialty 10/15/00 $94,400 Current
Lines Ins. Co. Poll. Legal
Harborside Financial Center 12/7/00 $425,000 Current
401 Plaza 3 Closure
Jersey City, NJ 07311
</TABLE>
Note: The premium for the Pollution Legal/Closure policy (AISLIC no. 8183013) is
billed in 5 annual installments of $19,280 (Pollution Legal) and $85,000
(Closure). To date, the first three installments are paid in full. The remaining
installments come due on the anniversary date. Thus, the remaining installments
for 12/15/98 and 1999 for Pollution and for 1/4/99 and 2000 for Closure, are
unbilled and unpaid.
Page 13
<PAGE> 14
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 6/1-6/30/98 $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 6/1-6/30/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 6/1-6/30/98 $1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 6/1-6/30/98 $1,185 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT 6/1-6/30/98 $10,960 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 6/1-6/30/98 $8,231 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 6/1-6/30/98 $50,000 Current
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
</TABLE>
Page 14 of 15
<PAGE> 15
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
UNUM Life Insurance Employee Funded Long Term Disability MMT 6/1-6/30/98 $1,951 Current
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 6/1-6/30/98 $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
Page 15 of 15
<PAGE> 1
EXHIBIT 99.4
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: MMT FEDERAL HOLDINGS, INC. CASE NO.: 97-21387-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
MONTHLY OPERATING REPORT FOR MONTH ENDING: 6/30/98
COMES NOW, MMT FEDERAL HOLDINGS, INC., Debtor in Possession, and hereby its
Monthly Operating Report for the period commencing 6/1/98 and ending 6/30/98 as
shown by the report and exhibits consisting of 10 pages and containing the
following, as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
-----------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
-----------
X Summary of Accounts Receivable (Form OPR-3)
-----------
X Schedule of Post-Petition Liabilities (Form OPR-4)
-----------
X Income Statement (Form OPR-5)
-----------
X Statement of Sources and Uses of Cash (Form OPR-6)
-----------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 7/24/98 DEBTOR-IN-POSSESSION
---------
By:
----------------------------------
Name & Title: F. Gordon Bitter, Vice President
MMT Federal Holdings, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: MMT FEDERAL HOLDINGS, INC. CASE NO.: 97-21387-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting
practices, this operating report accounts for all
cash transfers among the Debtor and its affiliates
and allocates some, but not all, of the expenses
borne by one affiliate for the benefit of another or
the others. In the absence of a decision for
substantive consolidation, the Debtor will develop
an appropriate allocation of all expenses among
the affiliated entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 500 500 500 500 500
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other
Inventory, at cost
Prepaid expenses
Deposits
Other:
Stock & interests in:
M4 Environmental Management, Inc. (100%) Unknown Unknown Unknown Unknown Unknown
Lockheed Martin Chemical Demilitarization Unknown Unknown Unknown Unknown Unknown
LLC (50% owned, 50% owned by
Lockheed Martin)
-----------------------------------------------------------------------
TOTAL CURRENT ASSETS 500 500 500 500 500
-----------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
-----------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 0 0 0 0 0
-----------------------------------------------------------------------
OTHER ASSETS (Itemized if value exceeds
10% of "Total Assets")
Intangible Assets
Less: Accumulated Amortization
-----------------------------------------------------------------------
TOTAL OTHER ASSETS 0 0 0 0 0
-----------------------------------------------------------------------
TOTAL ASSETS 500 500 500 500 500
=======================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
4/30/98 5/31/98 6/30/98
----------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 500 500 500
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other
Inventory, at cost
Prepaid expenses
Deposits
Other:
Stock & interests in:
M4 Environmental Management, Inc. (100%) Unknown Unknown Unknown
Lockheed Martin Chemical Demilitarization Unknown Unknown Unknown
LLC (50% owned, 50% owned by
Lockheed Martin)
-----------------------------------------
TOTAL CURRENT ASSETS 500 500 500
-----------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
-----------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 0 0 0
-----------------------------------------
OTHER ASSETS (Itemized if value exceeds
10% of "Total Assets")
Intangible Assets 0
Less: Accumulated Amortization
-----------------------------------------
TOTAL OTHER ASSETS 0 0 0
-----------------------------------------
TOTAL ASSETS 500 500 500
=========================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
<TABLE>
<CAPTION> MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4)
------------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 0 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES
------------------------------------------------------------------------
TOTAL LIABILITIES 0 0 0 0 0
------------------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock 10 10 10 10 10
Paid in Capital 990 990 990 990 990
Valuation Allowance (500) (500) (500) (500) (500)
Dividends Paid
Treasury Stock
Deferred Compensation
Retained Earnings
Through Filing Date
Post Filing Date
------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 500 500 500 500 500
------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 500 500 500 500 500
========================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
4/30/98 5/31/98 6/30/98
--------------------------------------
<S> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4)
--------------------------------------
TOTAL POST PETITION LIABILITIES 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES
--------------------------------------
TOTAL LIABILITIES 0 0 0
--------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock 10 10 10
Paid in Capital 990 990 990
Valuation Allowance (500) (500) (500)
Dividends Paid
Treasury Stock
Deferred Compensation
Retained Earnings
Through Filing Date
Post Filing Date
--------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 500 500 500
--------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 500 500 500
======================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
<TABLE>
<CAPTION> MONTH ENDED: 6/30/98
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF FILING 12/31/97 0
Allowance for doubtful accounts 0
------------------------------------------------------------------
0 0 0 0 0
==================================================================
MONTH: 12/31/97 0
Allowance for doubtful accounts 0
------------------------------------------------------------------
0 0 0 0 0
==================================================================
MONTH: 1/31/98 0
Allowance for doubtful accounts 0
------------------------------------------------------------------
0 0 0 0 0
==================================================================
MONTH: 2/28/98 0
Allowance for doubtful accounts 0
------------------------------------------------------------------
0 0 0 0 0
==================================================================
MONTH: 3/31/98 0
Allowance for doubtful accounts 0
------------------------------------------------------------------
0 0 0 0 0
==================================================================
MONTH: 4/30/98 0
Allowance for doubtful accounts 0
------------------------------------------------------------------
0 0 0 0 0
==================================================================
MONTH: 5/31/98
Allowance for doubtful accounts
------------------------------------------------------------------
0 0 0 0 0
==================================================================
MONTH: 6/30/98
Allowance for doubtful accounts
------------------------------------------------------------------
0 0 0 0 0
==================================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
<TABLE>
<CAPTION>
MONTH ENDED 6/30/98
DATE DATE TOTAL 0-30 31-60
INCURRED DUE DUE DAYS DAYS
--------------------------------------------------------------------------
TAXES PAYABLE
- -------------
<S> <C> <C> <C> <C> <C>
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
------------------------------------------
TOTAL TAXES PAYABLE 0 0 0
- ------------------- ------------------------------------------
POST PETITION SECURED DEBT
- --------------------------
DIP FINANCING
ACCRUED INTEREST PAYABLE
------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0
- -------------------------------- ------------------------------------------
POST PETITION UNSECURED DEBT
- ----------------------------
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules)
Payroll withholdings
Accrued Payroll
Accrued expenses
------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 0 0 0
------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 0 0 0
==========================================
</TABLE>
<TABLE>
<CAPTION>
MONTH ENDED 6/30/98
61-90 OVER
DAYS 90 DAYS
-----------------------------
<S> <C> <C>
TAXES PAYABLE
- -------------
Federal Income Taxes
FICA-Employer's Share
FICA-Employee's Share
Unemployment Tax
State Sales & Use Tax
State __________ Tax
Personal Property Tax
------------------------------------------
TOTAL TAXES PAYABLE 0 0
- ------------------- ------------------------------------------
POST PETITION SECURED DEBT
- --------------------------
DIP FINANCING
ACCRUED INTEREST PAYABLE
------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0
- -------------------------------- ------------------------------------------
POST PETITION UNSECURED DEBT
- ----------------------------
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules)
Payroll withholdings
Accrued Payroll
Accrued expenses
------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 0 0
------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 0 0
==========================================
</TABLE>
<PAGE> 7
FORM OPR-5
INCOME STATEMENT
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------
NET REVENUE (INCOME)
------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages capitalized in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0 0
------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0 0
------------------------------------------------------------------
INTEREST EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
------------------------------------------------------------------
NET INCOME (LOSS) NONE NONE NONE NONE NONE
==================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
4/30/98 5/31/98 6/30/98
<S> <C> <C> <C> <C>
-------------------------------------------------------
NET REVENUE (INCOME)
-------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages capitalized in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
-------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0
-------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0
-------------------------------------------------------
INTEREST EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-------------------------------------------------------
NET INCOME (LOSS) NONE NONE NONE 0
=======================================================
</TABLE>
<PAGE> 8
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
<TABLE>
<CAPTION>
MONTH ENDED 6/30/98
TOTAL
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) NONE NONE NONE NONE
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 0 0 0 0
Decrease (Increase)-Accounts Receivable 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0
Increase (Decrease)-Pre Petition Liabilities 0 0 0 0
Increase (Decrease)-Post Petition Liabilities 0 0 0 0
----------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 0 0 0 0
----------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures 0 0 0 0
Sale of Net Fixed Assets
----------------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 0 0 0 0
----------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0
Increase (Decrease)-Shareholder Valuations 0 0 0 0
Purchase of Treasury Stock-Preferred Shares
----------------------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0 0 0 0
----------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 0 0 0 0
Cash and Cash Equivalents at Beginning of Period 500 500 500 500
----------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 500 500 500 500
======================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98 6/30/98
---------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) NONE NONE NONE NONE
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 0 0 0 0
Decrease (Increase)-Accounts Receivable 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0
Increase (Decrease)-Pre Petition Liabilities 0 0 0 0
Increase (Decrease)-Post Petition Liabilities 0 0 0 0
---------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 0 0 0
---------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures 0 0 0 0
Sale of Net Fixed Assets
---------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 0 0 0
---------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0
Increase (Decrease)-Shareholder Valuations 0 0 0 0
Purchase of Treasury Stock-Preferred Shares
---------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0 0 0
---------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 0 0 0
Cash and Cash Equivalents at Beginning of Period 500 500 500 500
---------------------------------------------------
Cash and Cash Equivalents at End of Period 500 500 500 500
===================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 6/30/98
PAGE 1
<TABLE>
<CAPTION>
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and paid.
<S> <C> <C> <C>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
------------------------- --------------------------------------------------------------------
THE FOLLOWING OFFICERS OF THIS DEBTOR ARE EMPLOYEES AND OFFICERS OF
MOLTEN METAL TECHNOLOGY, INC. ("MMT"). THESE OFFICERS DO NOT RECEIVE
COMPENSATION FROM THIS DEBTOR, BUT ARE COMPENSATED BY MMT, WHICH HAS
DISCLOSED SUCH COMPENSATION IN ITS MONTHLY OPERATING REPORT (CASE NUMBER
97-21385-CJK).
F. Gordon Bitter, CEO & CFO, Director
Ethan E. Jacks, VP, General Counsel, Secretary
Eugene Berman, Assistant Secretary
Charles W. Shaver, President & COO, Director
Randall Jones, Assistant Secretary
-----------------------------------------------------
TOTAL EXECUTIVE PAYROLL 0 0 0 0
=====================================================
</TABLE>
2. INSURANCE
Is Workers' Compensation and other insurance in effect? N/A
-------------
Are payments current?
-------------
If any policy has lapsed, been replaced or renewed, state so in the
schedule below. Attach a copy of the new policy's binder or coverage
page.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- -------------------------------------------------------------------------------------------------------------
</TABLE>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
<TABLE>
<CAPTION>
PAGE 2
3. BANK ACCOUNTS
MMT FED
OPERATING TOTAL
----------- ------
<S> <C> <C>
BANK NAME U.S. TRUST
ACCOUNT NUMBER 002239244-1
BEGINNING BOOK BALANCE 500 500
PLUS: Deposits-Collections of A/R
Other Receipts
Loan Advances
LESS: Disbursements
Payroll
Returned Checks
Loan Repayments
OTHER: Adjustments
Transfers In (Out)
------------ ------
ENDING BOOK BALANCE 500 500
============ ======
</TABLE>
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professionals and payments on
Pre-petition debts in the schedule below.
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
------------------------- ---------------------------
<S> <C> <C> <C>
Professionals (Attorneys,
Accountants, etc.):
NONE
========
0
========
PRE-PETITION DEBTS
NONE
========
Total payments of pre-petition debts 0
========
</TABLE>
<PAGE> 11
INSURANCE EXPIRATION STATEMENT EXHIBIT D
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- -------------------------------------------------------------------------------------------------------------
SEE ATTACHED
</TABLE>
I declare under penalty of perjury that the information provided
on the attachments hereto is true and correct to the best of my
knowledge and belief.
Date: 7/23/98
-------
Molten Metal Technology, Inc.
By: /s/ F. Gordon Bitter
----------------------------
F. Gordon Bitter
Chief Executive Officer
MMT of Tennessee, Inc.
By: /s/ F. Gordon Bitter
----------------------------
F. Gordon Bitter
Vice President
M4 Environmental, L.P.
By: /s/ F. Gordon Bitter
----------------------------
M4 Environmental Management, Inc.
General Partner
By: /s/ F. Gordon Bitter
----------------------------
F. Gordon Bitter
Vice President
MMT Federal Holdings, Inc.
By: /s/ F. Gordon Bitter
----------------------------
F. Gordon Bitter
Vice President
<PAGE> 12
Molten Metal Technology Insurance Schedule
EXHIBIT A
<TABLE>
<CAPTION>
==================================== ===================================== ================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
===========================================================================================================================
<S> <C> <C> <C> <C>
Commerce & Industry Insurance Co. General Liability Aon $ 1,000,000 340-94-76
70 Pine Street Automobile Liability Aon $ 1,000,000 766-56-11
New York, NY 10270 Excess Liability - 1st layer Aon $ 20,000,000 606-23-31
excess of $1M
New Hampshire Insurance Co. Workers Compensation Aon Statutory C588-59-75
70 Pine Street Workers Compensation - CA Aon Statutory C588-59-77
New York NY 10270 Employers' Liability Aon $ 1,000,000 C588-59-75
and -77[CA]
American International Specialty Lines Pollution Liability - MA/TN Aon $ 3,000,000 8199951
Insurance Co. Pollution Liability - TX Aon $ 1,000,000 8199950
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company Fidelity Aon $ 500,000 51-118812-9
P.O. Box 91394 Fiduciary Aon $ 2,000,000 51-118834-9
Chicago, IL 60693
Executive Risk Indemnity Company Directors & Officers Liability Aon $ 10,000,000 51-091628-9
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability Aon $ 1,000,000 T 00 9648288
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. Property Aon $147,000,000 CC626
Allendale Park Blanket
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property J&H/M&M $ 45,000,000 98262
Town Center Nuclear Liability Facility Form - TN J&H/M&M $ 50,000,000 NF-0338
</TABLE>
<TABLE>
<CAPTION>
============================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
============================================================================
<S> <C> <C> <C>
Commerce & Industry Insurance Co. 12/3/98 $ 53,000 Current
70 Pine Street 12/3/98 $ 3,540 Current
New York, NY 10270 12/3/98 $ 43,185 Current
New Hampshire Insurance Co. 12/3/98 $111,250 Current
70 Pine Street 12/3/98 $ 753 Current
New York NY 10270 12/3/98 inclu. Current
American International Specialty Line 12/3/98 $ 28,342 Current
Insurance Co. 12/3/98 $ 16,919 Current
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company 5/9/99 $ 6,000 Current
P.O. Box 91394 5/9/99 $ 6,000 Current
Chicago, IL 60693
Executive Risk Indemnity Company 1/19/99 $350,000 Current
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies 2/1/99 $ 2,000 Current
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. 12/2/99 $170,000 Current
Allendale Park
Johnston, RI 02919
American Nuclear Insurers 1/1/99 $ 97,500 Current
Town Center 12/31/98 $124,215 Current
</TABLE>
Page 12
<PAGE> 13
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY EXPIRATION
NUMBER DATE
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000 NW-0235 12/31/98
West Hartford, CT 06107 Shared Agg.
Nuclear Supplier's & Transp. J&H/M&M $ 15,000,000 NS-0539 12/31/98
Nuclear Liability Facility Form - SC J&H/M&M $ 10,000,000 NF-0329 12/31/98
Nuclear Foreign Supplier's & Transp. J&H/M&M $ 10,000,000 TBD 12/31/9
Master Worker Certificate - SC J&H/M&M $200,000,000 NW-0237 12/31/98
Shared Agg.
Nuclear Facility Liability - Comm. Park J&H/M&M $ 10,000,000 NF-0337 12/31/98
Master Worker Certificate - Comm. Park J&H/M&M $200,000,000 NW-0234 12/31/98
Shared Agg.
American International Specialty Pollution Legal and Closure/Post Closure J&H/M&M $ 3,000,000 8183013 10/15/00
Lines Ins. Co. Pollution Legal Poll. Legal
Harborside Financial Center $ 3,400,000 12/7/00
401 Plaza 3 Closure Closure
Jersey City, NJ 07311
</TABLE>
<TABLE>
<CAPTION>
====================================================================
CARRIER NAME & ADDRESS PREMIUM PAID
THRU
====================================================================
<S> <C> <C>
29 South Main Street $ 550 Not yet invoiced
West Hartford, CT 06107
$ 8,670 Current
$13,590 Current
TBD Based on Foreign Sales
$ 550 Not yet invoiced
$39,568 Current
$ 550 Not yet invoiced
American International Specialty $ 94,400 Current
Lines Ins. Co.
Harborside Financial Center $425,000 Current
401 Plaza 3
Jersey City, NJ 07311
</TABLE>
Note: The premium for the Pollution Legal/Closure policy (AISLIC no. 8183013) is
billed in 5 annual installments of $19,280 (Pollution Legal) and $85,000
(Closure). To date, the first three installments are paid in full. The remaining
installments come due on the anniversary date. Thus, the remaining installments
for 12/15/98 and 1999 for Pollution and for 1/4/99 and 2000 for Closure, are
unbilled and unpaid.
Page 13
<PAGE> 14
Molten Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM
ENTITY DATE
====================================================================================================================================
<S> <C> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 6/1-6/30/98 $10,622
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 6/1-6/30/98 None
PO Box 5-0198
Woburn, MA 01815-0198
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 6/1-6/30/98 $1,968
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 6/1-6/30/98 $1,185
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT 6/1-6/30/98 $10,960
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 6/1-6/30/98 $8,231
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 6/1-6/30/98 $50,000
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
</TABLE>
<TABLE>
<CAPTION>
=================================================
CARRIER NAME & ADDRESS PAID
THRU
=================================================
<S> <C>
Blue Cross & Blue Shield of RI Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>
Molten Metal Technology Insurance Schedule
EXHIBIT A
==========================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
==========================================================================================================================
<S> <C> <C> <C> <C>
UNUM Life Insurance Employee Funded Long Term Disability MMT 6/1-6/30/98 $1,951 Current
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 6/1-6/30/98 $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
Page 15 of 15
<PAGE> 1
EXHIBIT 99.5
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: M4 ENVIRONMENTAL MANAGEMENT, INC. CASE NO.: 97-21388-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
MONTHLY OPERATING REPORT FOR MONTH ENDING: 6/30/98
COMES NOW, M4 ENVIRONMENTAL MANAGEMENT, INC., Debtor in Possession, and hereby
its Monthly Operating Report for the period commencing 6/1/98 and ending 6/30/98
as shown by the report and exhibits consisting of 10 pages and containing the
following, as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
-------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
-------
X Summary of Accounts Receivable (Form OPR-3)
-------
X Schedule of Post-Petition Liabilities (Form OPR-4)
-------
X Income Statement (Form OPR-5)
-------
X Statement of Sources and Uses of Cash (Form OPR-6)
-------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 7/23/98 DEBTOR-IN-POSSESSION
By: /s/ F. Gordon Bitter
-------------------------------------------
Name & Title: F. Gordon Bitter, Vice President
M4 Environmental Management, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: M4 ENVIRONMENTAL MANAGEMENT, INC. CASE NO.: 97-21388-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical
accounting practices, this operating
report accounts for all cash transfers
among the Debtor and its affiliates and
allocates some, but not all, of the
expenses borne by one affiliate for the
benefit of another or the others. In
the absence of a decision for
substantive consolidation, the Debtor
will develop an appropriate allocation
of all expenses among the affiliated
entities.
<PAGE> 3
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
-------- -------- ------- ------- ------- ------- ------- --------
ASSETS
CURRENT ASSETS
Cash
Other negotiable instruments
(i.e. CD's, Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other
Inventory, at cost
Prepaid expenses
Deposits
Other:
Stock & interests in:
M4 Environmental, LP (1% ownership, Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown
99% owned by MMT Federal
Holdings, Inc.)
--------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
--------------------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------
OTHER ASSETS (Itemized if value exceeds
10% of "Total Assets")
Intangible Assets
Less: Accumulated Amortization
--------------------------------------------------------------------------------
TOTAL OTHER ASSETS 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------
TOTAL ASSETS 0 0 0 0 0 0 0 0
================================================================================
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
--------------------------------------------------------------------------------
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations
due to cash transfers in Post
Petition Operations
Unsecured Debt-Obligations incurred
in Post Petition Operations
(See Form OPR-4)
--------------------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 0 0 0 0 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES
--------------------------------------------------------------------------------
TOTAL LIABILITIES 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock Nil Nil Nil Nil Nil Nil Nil Nil
Paid in Capital
Valuation Allowance
Dividends Paid
Treasury Stock
Deferred Compensation
Retained Earnings
Through Filing Date
Post Filing Date
--------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 0 0 0 0 0 0 0 0
================================================================================
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 6/30/98
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
----------------------------------------
DATE OF FILING: 12/3/97 0
Allowance for doubtful accounts 0
----------------------------------------
0 0 0 0 0
========================================
MONTH: 12/31/97
Allowance for doubtful accounts 0
----------------------------------------
0 0 0 0 0
========================================
MONTH: 1/31/98 0
Allowance for doubtful accounts 0
----------------------------------------
0 0 0 0 0
========================================
MONTH: 2/28/98 0
Allowance for doubtful accounts 0
----------------------------------------
0 0 0 0 0
========================================
MONTH: 3/31/98 0
Allowance for doubtful accounts 0
----------------------------------------
0 0 0 0 0
========================================
MONTH: 4/30/98 0
0
----------------------------------------
0 0 0 0 0
========================================
MONTH: 5/31/98
Allowance for doubtful accounts
----------------------------------------
0 0 0 0 0
========================================
MONTH: 6/30/98
Allowance for doubtful accounts
----------------------------------------
0 0 0 0 0
========================================
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 6/30/98
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
----------------------------------------------------------
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
---------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
---------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
ACCRUED INTEREST PAYABLE
---------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0 0 0
---------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable
(see attached schedules)
Payroll withholdings
Accrued Payroll
Accrued expenses
---------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 0 0 0 0 0
---------------------------------------
TOTAL ALL POST PETITION LIABILITIES 0 0 0 0 0
=======================================
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME STATEMENT FORM OPR-5
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 6/30/98
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED MONTH
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98 ENDED
-----------------------------------------------------------------------------------------
NET REVENUE (INCOME)
-----------------------------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages capitalized
in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
-----------------------------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------------
INTEREST EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-----------------------------------------------------------------------------------------
NET INCOME (LOSS) NONE NONE NONE NONE NONE NONE NONE NONE 0
=========================================================================================
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 6/30/98
TOTAL TOTAL TOTAL TOTAL
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
---------------------------------------------------------------------------------------
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) NONE NONE NONE NONE NONE NONE NONE NONE
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by
Operating Activities:
Depreciation & Amortization 0 0 0 0 0 0 0 0
Decrease (Increase)-Accounts Receivable 0 0 0 0 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0 0 0 0 0
Increase (Decrease)-Pre Petition
Liabilities 0 0 0 0 0 0 0 0
Increase (Decrease)-Post Petition
Liabilities 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------
Net Cash Provided (Used) by
Operating Activities 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------
Cash Flows Used in Investing Activities
Capital Expenditures 0 0 0 0 0 0 0 0
Sale of Net Fixed Assets
---------------------------------------------------------------------------------------
Net Cash Provided (Used) in
Investing Activities 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------
Cash Flows From Financing Activities:
Increase (Decrease)-Morgens Waterfall 0 0 0 0 0 0 0 0
Increase (Decrease)-Shareholder
Valuations 0 0 0 0 0 0 0 0
Purchase of Treasury Stock-
Preferred Shares
---------------------------------------------------------------------------------------
Net Cash Provided (Used) in
Financing Activities 0 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 0 0 0 0 0 0 0 0 0
Cash and Cash Equivalents at
Beginning of Period 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 0 0 0 0 0 0 0 0
=======================================================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 6/30/98
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and paid.
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
----------------- -------------------------------------
THE FOLLOWING OFFICERS OF THIS DEBTOR ARE EMPLOYEES AND OFFICERS OF MOLTEN
METAL TECHNOLOGY, INC. ("MMT"). THESE OFFICERS DO NOT RECEIVE COMPENSATION
FROM THIS DEBTOR, BUT ARE COMPENSATED BY MMT, WHICH HAS DISCLOSED SUCH
COMPENSATION IN ITS MONTHLY OPERATING REPORT (CASE NUMBER 97-21385-CJK).
F. Gordon Bitter, CEO & CFO, Director
Ethan E. Jacks, VP, General Counsel,
Secretary
Eugene Berman, Assistant Secretary
Charles W. Shaver, President & COO,
Director
Randall Jones, Assistant Secretary
------------------------------
TOTAL EXECUTIVE PAYROLL 0 0 0 0
==============================
2. INSURANCE
Is Workers' Compensation and other insurance in effect? N/A
-----
Are payments current?
-----
If any policy has lapsed, been replaced or renewed,
state so in the schedule below.
Attach a copy of the new policy's binder or coverage page.
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- --------------------------------------------------------------------------------
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 6/30/98
PAGE 2
3. BANK ACCOUNTS
TOTAL
-----
BANK NAME
ACCOUNT NUMBER
BEGINNING BOOK BALANCE 0
PLUS: Deposits-Collections of A/R
Other Receipts
Loan Advances
LESS: Disbursements
Payroll
Returned Checks
Loan Repayments
OTHER: Adjustments
Transfers In (Out)
-----
ENDING BOOK BALANCE 0
=====
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professionals and payments on
Pre-petition debts in the schedule below.
Payments To/On Amount Date Check #
-------------- -------------------------------
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
NONE
======
0
======
PRE-PETITION DEBTS
NONE
======
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
======
<PAGE> 11
INSURANCE EXPIRATION STATEMENT EXHIBIT D
<TABLE>
<CAPTION>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SEE ATTACHED
</TABLE>
I declare under penalty of perjury that the information provided on
the attachments hereto is true and correct to the best of my knowledge
and belief.
Date: 7/23/98
MOLTEN METAL TECHNOLOGY, INC.
By: /s/ F. Gordon Bitter
---------------------------------
F. Gordon Bitter
Chief Executive Officer
MMT OF TENNESSEE, INC.
By: /s/ F. Gordon Bitter
---------------------------------
F. Gordon Bitter
Vice President
M4 ENVIRONMENTAL, L.P.
By: /s/ F. Gordon Bitter
---------------------------------
M4 Environmental Management, Inc.
General Partner
By: /s/ F. Gordon Bitter
---------------------------------
F. Gordon Bitter
Vice President
MMT FEDERAL HOLDINGS, INC.
By: /s/ F. Gordon Bitter
---------------------------------
F. Gordon Bitter
Vice President
<PAGE> 12
<TABLE>
<CAPTION>
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
==============================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
==============================================================================================================================
<S> <C> <C> <C> <C>
Commerce & Industry Insurance Co. General Liability Aon $1,000,000 340-94-76
70 Pine Street Automobile Liability Aon $1,000,000 766-56-11
New York, NY 10270 Excess Liability - 1st layer Aon $20,000,000 606-23-31
excess of $1M
New Hampshire Insurance Co. Workers Compensation Aon Statutory WC588-59-75
70 Pine Street Workers Compensation - CA Aon Statutory WC588-59-77
New York NY 10270 Employers' Liability Aon $1,000,000 WC588-59-75
and -77[CA]
American International Specialty Pollution Liability - MA/TN Aon $3,000,000 8199951
Line Insurance Co. Pollution Liability - TX Aon $1,000,000 8199950
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company Fidelity Aon $500,000 751-118812-98
P.O. Box 91394 Fiduciary Aon $2,000,000 751-118834-98
Chicago, IL 60693
Executive Risk Indemnity Company Directors & Officers Liability Aon $10,000,000 751-091628-98
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability Aon $1,000,000 PST 00 9648288
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. Property Aon $147,000,000 CC626
Allendale Park Blanket
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property J&H/M&M $45,000,000 98262
Town Center Nuclear Liability Facility Form - TN J&H/M&M $50,000,000 NF-0338
============================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
============================================================================================
<S> <C> <C> <C>
Commerce & Industry Insurance Co. 12/3/98 $53,000 Current
70 Pine Street 12/3/98 $3,540 Current
New York, NY 10270 12/3/98 $43,185 Current
New Hampshire Insurance Co. 12/3/98 $111,250 Current
70 Pine Street 12/3/98 $753 Current
New York NY 10270 12/3/98 inclu. Current
American International Specialty 12/3/98 $28,342 Current
Line Insurance Co. 12/3/98 $16,919 Current
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company 5/9/99 $6,000 Current
P.O. Box 91394 5/9/99 $6,000 Current
Chicago, IL 60693
Executive Risk Indemnity Company 1/19/99 $350,000 Current
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies 2/1/99 $2,000 Current
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. 12/2/99 $170,000 Current
Allendale Park
Johnston, RI 02919
American Nuclear Insurers 1/1/99 $97,500 Current
Town Center 12/31/98 $124,215 Current
Page 12
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
=============================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
=============================================================================================================================
<S> <C> <C> <C> <C>
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000 NW-0235
West Hartford, CT 06107 Shared Agg.
Nuclear Supplier's & Transp. J&H/M&M $15,000,000 NS-0539
Nuclear Liability Facility Form - SC J&H/M&M $10,000,000 NF-0329
Nuclear Foreign Supplier's & Transp. J&H/M&M $10,000,000 TBD
Master Worker Certificate - SC J&H/M&M $200,000,000 NW-0237
Shared Agg.
Nuclear Facility Liability - Comm. Park J&H/M&M $10,000,000 NF-0337
Master Worker Certificate - Comm. Park J&H/M&M $200,000,000 NW-0234
Shared Agg.
American International Specialty Pollution Legal and Closure/Post Closure J&H/M&M $3,000,000 8183013
Lines Ins. Co. Pollution Legal
Harborside Financial Center $3,400,000
401 Plaza 3 Closure
Jersey City, NJ 07311
=============================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
=============================================================================================
<S> <C> <C> <C>
29 South Main Street 12/31/98 $550 Not yet invoiced
West Hartford, CT 06107
12/31/98 $8,670 Current
12/31/98 $13,590 Current
12/31/98 TBD Based on Foreign Sales
12/31/98 $550 Not yet invoiced
12/31/98 $39,568 Current
12/31/98 $550 Not yet invoiced
American International Specialty 10/15/00 $94,400 Current
Lines Ins. Co. Pollution Legal
Harborside Financial Center 12/7/00 $425,000 Current
401 Plaza 3 Closure
Jersey City, NJ 07311
Note: The premium for the Pollution Legal/Closure policy (AISLIC no. 8183013) is billed in 5 annual installments of $19,280
(Pollution Legal) and $85,000 (Closure). To date, the first three installments are paid in full. The remaining installments come due
on the anniversary date. Thus, the remaining installments for 12/15/98 and 1999 for Pollution and for 1/4/99 and 2000 for Closure,
are unbilled and unpaid.
Page 13
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 6/1-6/30/98 $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 6/1-6/30/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 6/1-6/30/98 $1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 6/1-6/30/98 $1,185 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT 6/1-6/30/98 $10,960 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 6/1-6/30/98 $8,231 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 6/1-6/30/98 $50,000 Current
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
Page 14 of 15
</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
UNUM Life Insurance Employee Funded Long Term Disability MMT 6/1-6/30/98 $1,951 Current
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 6/1-6/30/98 $2,110 Current
2211 Congress Street
Portland, ME 04122
Page 15 of 15
</TABLE>
<PAGE> 1
EXHIBIT 99.6
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: M4 ENVIRONMENTAL, LP CASE NO.: 97-21389-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
MONTHLY OPERATING REPORT FOR MONTH ENDING: 6/30/98
COMES NOW, M4 ENVIRONMENTAL, LP, Debtor in Possession, and hereby its Monthly
Operating Report for the period commencing 6/1/98 and ending 6/30/98 as shown by
the report and exhibits consisting of 10 pages and containing the following, as
indicated:
X Monthly Reporting Questionnaire (Attachment 1)
--------------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
--------------
X Summary of Accounts Receivable (Form OPR-3)
--------------
X Schedule of Post-Petition Liabilities (Form OPR-4)
--------------
X Income Statement (Form OPR-5)
--------------
X Statement of Sources and Uses of Cash (Form OPR-6)
--------------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 7/24/98 DEBTOR-IN-POSSESSION
By: /s/ F. Gordon Bitter
-----------------------------------------
Name & Title: F. Gordon Bitter, Vice President
M4 Environmental Management, Inc.
as General Partner of M4 Environmental LP
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: M4 ENVIRONMENTAL, LP CASE NO.: 97-21389-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices, this operating
report accounts for all cash transfers among the Debtor and its affiliates and
allocates some, but not all, of the expenses borne by one affiliate for the
benefit of another or the others. In the absence of a decision for substnative
consolidation, the Debtor will develop an appropriate allocation of all expenses
among the affiliated entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
----------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 53,265
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other 2,294,613 2,294,613 2,294,613 2,294,613
Inventory, at cost
Prepaid expenses
Deposits
Other:
Investment in CW LLC 1,497,718 1,497,718 1,497,718 1,497,718
Long Term Notes Receivable from
Lockheed Martin 19,000,000 19,000,000 19,000,000 19,000,000
----------------------------------------------------------------
TOTAL CURRENT ASSETS 22,845,596 22,792,331 22,792,331 22,792,331
----------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 10,653,977 10,653,977 10,653,977 10,653,977
Less: Accumulated Depreciation (580,281) (710,532) (828,954) (947,376)
----------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 10,073,696 9,943,445 9,825,023 9,706,601
----------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 2,414,005 2,414,005 2,414,005 2,414,005
Less: Accumulated Amortization (102,512) (120,443) (138,373) (156,304)
----------------------------------------------------------------
TOTAL OTHER ASSETS 2,311,493 2,293,562 2,275,632 2,257,701
----------------------------------------------------------------
TOTAL ASSETS 35,230,785 35,029,338 34,892,986 34,756,633
================================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98 6/30/98
-------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other 2,294,613 2,294,613 2,294,613 1,163,630
Inventory, at cost
Prepaid expenses
Deposits
Other:
Investment in CW LLC 1,497,718 1,497,718 1,497,718 1,497,718
Long Term Notes Receivable from
Lockheed Martin 19,000,000 19,000,000 19,000,000 19,000,000
--------------------------------------------------------------
TOTAL CURRENT ASSETS 22,792,331 22,792,331 22,792,331 21,661,348
--------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 10,653,977 10,653,977 10,653,977 10,653,977
Less: Accumulated Depreciation (1,065,798) (1,184,220) (1,302,642) (1,421,064)
--------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 9,588,179 9,469,757 9,351,335 9,232,913
--------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 2,414,005 2,414,005 2,414,005 2,414,005
Less: Accumulated Amortization (174,235) (192,166) (210,097) (228,027)
--------------------------------------------------------------
TOTAL OTHER ASSETS 2,239,770 2,221,839 2,203,908 2,185,978
--------------------------------------------------------------
TOTAL ASSETS 34,620,280 34,483,927 34,347,574 33,080,239
==============================================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations (25,762) 63,760 63,760
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 34,057 8,294 8,294
--------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 8,295 72,054 72,054
PRE PETITION INTERCOMPANY LIABILITIES 35,906,310 35,906,310 35,906,310 35,906,310
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES 40,969,552 40,907,477 40,843,718 40,843,718
--------------------------------------------------------------------
TOTAL LIABILITIES 76,875,862 76,822,082 76,822,082 76,822,082
PARTNERSHIP EQUITY (DEFICIT)
Retained Earnings
Through Filing Date (41,645,077) (41,645,077) (41,645,077) (41,645,077)
Post Filing Date (147,667) (284,019) (420,372)
--------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (41,645,077) (41,792,744) (41,929,096) (42,065,449)
--------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 35,230,785 35,029,338 34,892,986 34,756,633
====================================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98 6/30/98
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations 64,065 64,065 64,065 64,065
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 8,294 8,294 8,294 8,294
--------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 72,359 72,359 72,359 72,359
PRE PETITION INTERCOMPANY LIABILITIES 35,906,310 35,906,310 35,906,310 35,906,310
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES 40,844,824 40,844,824 40,844,824 39,713,842
--------------------------------------------------------------------
TOTAL LIABILITIES 76,823,493 76,823,493 76,823,493 75,692,511
PARTNERSHIP EQUITY (DEFICIT)
Retained Earnings
Through Filing Date (41,645,077) (41,645,077) (41,645,077) (41,645,077)
Post Filing Date (558,136) (694,489) (830,842) (967,195)
--------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (42,203,213) (42,339,566) (42,475,919) (42,612,272)
--------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 34,620,280 34,483,927 34,347,574 33,080,239
====================================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF FILING: 12/3/97 0
Allowance for doubtful accounts 0
----------------------------------------------------------------------
0 0 0 0 0
======================================================================
MONTH: 12/31/97 0
Allowance for doubtful accounts 0
----------------------------------------------------------------------
0 0 0 0 0
======================================================================
MONTH: 1/31/98 0
Allowance for doubtful accounts 0
----------------------------------------------------------------------
0 0 0 0 0
======================================================================
MONTH: 2/28/98 0
Allowance for doubtful accounts 0
----------------------------------------------------------------------
0 0 0 0 0
======================================================================
MONTH: 3/31/98 0
Allowance for doubtful accounts 0
----------------------------------------------------------------------
0 0 0 0 0
======================================================================
MONTH: 4/30/98 0
Allowance for doubtful accounts 0
----------------------------------------------------------------------
0 0 0 0 0
======================================================================
MONTH: 5/31/98 0
Allowance for doubtful accounts 0
----------------------------------------------------------------------
0 0 0 0 0
======================================================================
MONTH: 6/30/98 0
Allowance for doubtful accounts 0
----------------------------------------------------------------------
0 0 0 0 0
======================================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
----------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
----------------------------------------------
POST PETITION SECURED DEBT
ACCRUED INTEREST PAYABLE
----------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0 0 0
----------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules)
Unsecured debt-Bank processed automatic funds transfer debit
to pay bond interest on December 1 against insufficient funds balance.
This created an overdraft of $8,294 and an unsecured debt obligation
to the bank. 8,294
Accrued expenses-Deferred Decontamination
& Decommissioning Expenses 0
----------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 8,294 0 0 0 0
----------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 8,294 0 0 0 0
==============================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
-------------------------------------------------------------------------------------
NET REVENUE (INCOME)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages capitalized
in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment Rent-office/buildings
Supplies-processing
Taxes 1,411
Telephone
Transportation
Travel & entertainment
Utilities
-------------------------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0 1,411 0 0 0 0
-------------------------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0 (1,411) 0 0 0 0
-------------------------------------------------------------------------------------
INTEREST EXPENSE (515)
DEPRECIATION AND AMORTIZATION 143,182 136,352 136,353 136,353 136,353 136,353 136,353
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-------------------------------------------------------------------------------------
NET INCOME (LOSS) 0 (147,667) (136,352) (136,353) (137,764) (136,353) (136,353) (136,353) 0
=====================================================================================
</TABLE>
<PAGE> 8
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 6/30/98
TOTAL
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (147,667) (147,667) (136,352) (136,353)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 148,182 148,182 136,352 136,353
Decrease (Increase)-Accounts Receivable 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0
Increase (Decrease)-Pre Petition Liabilities (62,075) (62,075) (63,759) 0
Increase (Decrease)-Post Petition Liabilities 8,295 8,295 63,759 0
------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 (53,265) (53,265) 0 0
------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures 0 0 0 0
Sale of Net Fixed Assets
------------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 0 0 0 0
------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0
Increase (Decrease)-Shareholder Valuations
Purchase of Treasury Stock-Preferred Shares
------------------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0 0 0 0
------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 (53,265) (53,265) 0 0
Cash and Cash Equivalents at Beginning of Period 53,265 53,265 0 0
------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 0 0 0 0
==================================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98 6/30/98
----------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (137,764) (136,353) (136,353) (136,353)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 136,353 136,353 136,353 136,352
Decrease (Increase)-Accounts Receivable 0 0 0 1,130,983
Decrease (Increase)-Inventories 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0
Increase (Decrease)-Pre Petition Liabilities 1,106 0 0 (1,130,982)
Increase (Decrease)-Post Petition Liabilities 305 0 0 0
----------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 0 0 0
----------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures 0 0 0 0
Sale of Net Fixed Assets
----------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 0 0 0
----------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0
Increase (Decrease)-Shareholder Valuations
Purchase of Treasury Stock-Preferred Shares
----------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0 0 0
----------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 0 0 0
Cash and Cash Equivalents at Beginning of Period 0 0 0 0
----------------------------------------------------
Cash and Cash Equivalents at End of Period 0 0 0 0
====================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 6/30/98
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and
paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
------------------------- -------------------------------------------------
<S> <C> <C> <C> <C>
NONE
---------------------------------------
TOTAL EXECUTIVE PAYROLL 0 0 0 0
=======================================
</TABLE>
2. INSURANCE
<TABLE>
<S> <C>
Is Workers' Compensation and other insurance in effect? Yes
--------
Are payments current? Yes
--------
If any policy has lapsed, been replaced or renewed, state so in the
schedule below. Attach a copy of the new policy's binder or coverage
page.
<CAPTION>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
</TABLE>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
M4 LP
OPERATING TOTAL
--------- ----------
<S> <C> <C>
BANK NAME SUNTRUST
ACCOUNT NUMBER 0005618983
BEGINNING BOOK BALANCE (8,294) (8,294)
PLUS: Deposits-Collections of A/R
Other Receipts
Loan Advances
LESS: Disbursements 0
Payroll
Returned Checks
Loan Repayments
OTHER: Adjustments
Transfers In (Out)
---------- -------
ENDING BOOK BALANCE (8,294) (8,294)
========== =======
</TABLE>
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professionals and payments on
Pre-petition debts in the schedule below.
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
------------------------- -------------------------------
<S> <C>
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
NONE
=======
0
=======
PRE-PETITION DEBTS
NONE
=======
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
=======
</TABLE>
<PAGE> 11
INSURANCE EXPIRATION STATEMENT Exhibit D
<TABLE>
<CAPTION>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SEE ATTACHED
</TABLE>
I declare under penalty of perjury that the information provided on the
attachments hereto is true and correct to the best of my knowledge and
belief.
Date: 7/23/98
--------------
Molten Metal Technology, Inc.
By: /s/ F. Gordon Bitter
----------------------------------
F. Gordon Bitter
Chief Executive Officer
MMT of Tennessee, Inc.
By: /s/ F. Gordon Bitter
----------------------------------
F. Gordon Bitter
Vice President
M4 Environmental, L.P.
By: /s/ F. Gordon Bitter
----------------------------------
M4 Environmental Managment, Inc.
General Partner
By: /s/ F. Gordon Bitter
----------------------------------
F. Gordon Bitter
Vice President
MMT Federal Holdings, Inc.
By: /s/ F. Gordon Bitter
----------------------------------
F. Gordon Bitter
Vice President
<PAGE> 12
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY EXPIRATION PREMIUM PAID
NUMBER DATE THRU
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Commerce & Industry
Insurance Co. General Liability Aon $1,000,000 340-94-76 12/3/98 $53,000 Current
70 Pine Street Automobile Liability Aon $1,000,000 766-56-11 12/3/98 $3,540 Current
New York, NY 10270 Excess Liability - 1st layer Aon $20,000,000 606-23-31 12/3/98 $43,185 Current
excess of $1M
New Hampshire
Insurance Co. Workers Compensation Aon Statutory WC588-59-75 12/3/98 $111,250 Current
70 Pine Street Workers Compensation - CA Aon Statutory WC588-59-77 12/3/98 $753 Current
New York NY 10270 Employers' Liability Aon $1,000,000 WC588-59-75 12/3/98 inclu. Current
and -77[CA]
American International Pollution Liability - MA/TN Aon $3,000,000 8199951 12/3/98 $28,342 Current
Specialty Lines Pollution Liability - TX Aon $1,000,000 8199950 12/3/98 $16,919 Current
Insurance Co.
70 Pine Street
New York NY 10270
Executive Risk
Indemnity Company Fidelity Aon $500,000 751-118812-98 5/9/99 $6,000 Current
P.O. Box 91394 Fiduciary Aon $2,000,000 751-118834-98 5/9/99 $6,000 Current
Chicago, IL 60693
Executive Risk
Indemnity Company Directors & Officers Liability Aon $10,000,000 751-091628-98 1/19/99 $350,000 Current
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability Aon $1,000,000 PST 00 9648288 2/1/99 $2,000 Current
180 Maiden Lane
New York, NY 10038
Allendale Mutual
Insurance Co. Property Aon $147,000,000 CC626 12/2/99 $170,000 Current
Allendale Park Blanket
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property J&H/M&M $45,000,000 98262 1/1/99 $97,500 Current
Town Center Nuclear Liability Facility Form - TN J&H/M&M $50,000,000 NF-0338 12/31/98 $124,215 Current
</TABLE>
Page 12
<PAGE> 13
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
===================================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY EXPIRATION PREMIUM PAID
NUMBER DATE THRU
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000 NW-0235 12/31/98 $550 Not yet invoiced
West Hartford, CT 06107 Shared Agg.
Nuclear Supplier's & Transp. J&H/M&M $15,000,000 NS-0539 12/31/98 $8,670 Current
Nuclear Liability Facility Form - SC J&H/M&M $10,000,000 NF-0329 12/31/98 $13,590 Current
Nuclear Foreign Supplier's & Transp. J&H/M&M $10,000,000 TBD 12/31/98 TBD Based on
Foreign Sales
Master Worker Certificate - SC J&H/M&M $200,000,000 NW-0237 12/31/98 $550 Not yet invoiced
Shared Agg.
Nuclear Facility Liability -
Comm. Park J&H/M&M $10,000,000 NF-0337 12/31/98 $39,568 Current
Master Worker Certificate -
Comm. Park J&H/M&M $200,000,000 NW-0234 12/31/98 $550 Not yet invoiced
Shared Agg.
American International
Specialty Lines Ins. Co. Pollution Legal and J&H/M&M $3,000,000 8183013 10/15/00 $94,400 Current
Harborside Financial Closure/Post Closure Pollution Legal Poll. Legal
Center $3,400,000 12/7/00 $425,000 Current
401 Plaza 3 Closure Closure
Jersey City, NJ 07311
</TABLE>
Note: The premium for the Pollution Legal/Closure policy (AISLIC no. 8183013) is
billed in 5 annual installments of $19,280 (Pollution Legal) and $85,000
(Closure). To date, the first three installments are paid in full. The remaining
installments come due on the anniversary date. Thus, the remaining installments
for 12/15/98 and 1999 for Pollution and for 1/4/99 and 2000 for Closure, are
unbilled and unpaid.
Page 13
<PAGE> 14
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
===================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 6/1-6/30/98 $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 6/1-6/30/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 6/1-6/30/98 $1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 6/1-6/30/98 $1,185 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT 6/1-6/30/98 $10,960 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 6/1-6/30/98 $8,231 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 6/1-6/30/98 $50,000 Current
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
</TABLE>
Page 14 of 15
<PAGE> 15
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
====================================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION PREMIUM PAID
ENTITY DATE THRU
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
UNUM Life Insurance Employee Funded Long Term Disability MMT 6/1-6/30/98 $1,951 Current
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 6/1-6/30/98 $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
Page 15 of 15
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