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Previous: WILLBROS GROUP INC, 11-K, 1998-06-29 |
Next: FEDERAL MONEY MARKET PORTFOLIO, NSAR-A, 1998-06-29 |
<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): June 26, 1998
MOLTEN METAL TECHNOLOGY, INC.
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-21042 52-1659959
(State or Other Jurisdiction of (Commission File Number) (I.R.S. Employer
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 case numbers are as
follows:
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
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 May 31, 1998, together with a consolidated report, were filed with
the Office of the United States Trustee on June 26, 1998. Copies of these MORs
are attached hereto as Exhibits 99.1 through 99.6 and are incorporated herein by
reference.
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 April 30, 1998 (1)
99.2 Monthly Operating Report of the Company for the month ending
April 30, 1998 (1)
99.3 Monthly Operating Report of the Company's subsidiary MMT
of Tennessee Inc. for the month ending April 30, 1998 (1)
99.4 Monthly Operating Report of the Company's subsidiary MMT
Federal Holdings, Inc. for the month ending April 30, 1998 (1)
<PAGE> 3
99.5 Monthly Operating Report of the Company's subsidiary M4
Environmental Management Inc. for the month ending April 30,
1998 (1)
99.6 Monthly Operating Report of the Company's subsidiary M4
Environmental, L.P. for the month ending April 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: June 29, 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
CHAPTER 11
MONTHLY OPERATING REPORT FOR MONTH ENDING: 5/31/98
COMES NOW, MOLTEN METAL TECHNOLOGY, INC. (CONSOLIDATED), Debtor in Possession,
and hereby its Monthly Operating Report for the period commencing 5/1/98 and
ending 5/31/98 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: 6/26/98 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. (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 others. In the absence of a decision for substantive
consolidation, the Debtor will develop an appropriate allocation of expenses
among the affiliated entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
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 4,654,326 7,712,988 7,222,698 5,141,902 1,679,329
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
Less: allowance for doubtful accounts (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 3,456,844
Inventory, at cost 4,642,718 2,999,979 2,981,683 2,953,384 3,252,606
Prepaid expenses 2,944,501 3,432,683 3,590,453 3,912,070 4,053,504
Deposits 199,046 176,955 258,371 264,731 327,840
Other:
Investment in Nichimen Joint Venture 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
Long Term Notes Receivable 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
-------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 49,902,740 51,724,290 50,213,990 48,865,845 47,209,673
-------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 158,480,555 158,577,054 158,881,900 159,301,814 159,543,659
Less: Accumulated Depreciation (23,789,824) (24,685,394) (25,710,487) (26,735,581) (27,727,471)
-------------------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 134,690,731 133,891,660 133,171,413 132,566,233 131,816,188
-------------------------------------------------------------------------------
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
Less: Accumulated Amortization (4,212,236) (4,412,755) (4,604,973) (4,797,190) (4,992,683)
-------------------------------------------------------------------------------
TOTAL OTHER ASSETS 21,931,737 21,730,666 21,563,358 21,382,414 21,406,194
-------------------------------------------------------------------------------
TOTAL ASSETS 206,525,208 207,346,616 204,948,761 202,824,492 200,432,055
===============================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
4/30/98 5/31/98
------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 622,084 176,049
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 7,663,418 7,512,835
Less: allowance for doubtful accounts (150,000) (150,000)
Accounts Receivable-Other 3,998,122 3,940,945
Inventory, at cost 3,070,450 3,332,996
Prepaid expenses 3,798,824 4,556,459
Deposits 327,840 327,840
Other:
Investment in Nichimen Joint Venture 433,739 433,739
Investment in CW, LLC 1,497,718 1,497,718
Long Term Notes Receivable 20,806,950 20,806,950
Restricted Cash Collateral Deposits 4,236,270 4,236,270
------------------------------------------------
TOTAL CURRENT ASSETS 46,505,415 46,671,801 0
------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 160,680,666 161,580,803
Less: Accumulated Depreciation (28,736,212) (29,769,307)
------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 131,944,454 131,811,496 0
------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 26,488,284 26,564,368
Less: Accumulated Amortization (5,199,409) (5,413,005)
------------------------------------------------
TOTAL OTHER ASSETS 21,288,875 21,151,363 0
------------------------------------------------
TOTAL ASSETS 199,738,744 199,634,660 0
================================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
MONTH ENDED: 5/31/98
<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 7,000,000 7,000,000
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
---------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 8,336,569 9,266,637 11,943,854
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME 12,378,455 10,623,523 10,213,992 10,200,940
TOTAL OTHER PRE PETITION LIABILITIES 242,148,750 241,463,644 242,349,829 240,705,035
---------------------------------------------------------------
TOTAL LIABILITIES 254,527,205 260,423,736 261,830,458 262,849,829
---------------------------------------------------------------
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 170,893,690 170,893,690 170,893,907 170,893,907
Valuation Allowance 9,683 11,636
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 (229,295,965) (229,295,965) (229,295,965) (229,295,965)
Post Filing Date (5,083,724) (8,883,529) (12,033,173)
---------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (48,001,997) (53,077,120) (56,881,697) (60,025,337)
---------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 206,525,208 207,346,616 204,948,761 202,824,492
===============================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
---------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 7,000,000 7,000,000 9,300,000
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 5,414,210 5,228,901 5,733,366
---------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 12,414,210 12,228,901 15,033,366 0
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME 10,180,107 10,347,984 10,194,496
TOTAL OTHER PRE PETITION LIABILITIES 240,424,837 241,011,506 240,761,011
---------------------------------------------------------------
TOTAL LIABILITIES 263,019,154 263,588,391 265,988,873 0
---------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock 18,371,126 18,011,989 17,652,851
Common Stock 237,810 237,810 237,810
Paid in Capital 170,893,907 170,893,690 170,893,690
Valuation Allowance
Dividends Paid (6,830,562) (6,471,425) (6,112,287)
Treasury Stock (1,251,319) (1,251,319) (1,251,319)
Deferred Compensation (101,191) (94,758) (88,111)
Retained Earnings
Through Filing Date (229,295,965) (229,295,965) (229,295,965)
Post Filing Date (14,610,905) (15,879,669) (18,390,928)
---------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (62,587,099) (63,849,647) (66,354,259) 0
---------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 200,432,055 199,738,744 199,634,614 0
===============================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
<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 7,589,596 4,116,989 943,972 797,630 1,731,005
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
====================================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
DATE DATE TOTAL
INCURRED DUE DUE
-------------------------------------------
<S> <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
-------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens Waterfall Financing 3/20/98-5/31/99 12/31/99 9,300,000
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens Waterfall Financing
-------------
TOTAL POST PETITION SECURED DEBT 9,300,000
-------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules) 1,646,389
Payroll withholdings
Accrued Payroll
Accrued expenses-Estimated liability incurred, but not invoiced
as of the end of the period and deferred obligations. 4,086,977
-------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 5,733,366
-------------
TOTAL ALL POST PETITION LIABILITIES 15,033,366
=============
</TABLE>
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
DAYS DAYS DAYS 90 DAYS
------------------------------------------------------
<S> <C> <C> <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 0 0
------------------------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens Waterfall Financing
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens Waterfall Financing
------------------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0 0
------------------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules)
Payroll withholdings
Accrued Payroll
Accrued expenses-Estimated liability incurred, but not invoiced
as of the end of the period and deferred obligations.
------------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 0 0 0 0
------------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 0 0 0 0
======================================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NO.: 97-21385-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
PRE POST MONTH MONTH
PETITION PETITION ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------------------------------------------------
<S> <C> <C> <C> <C>
NET REVENUE (INCOME) 0 4,103,641 1,797,407 2,069,601
------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 224,548 1,676,135 1,353,865 1,050,129
Less: Salaries & wages capitalized in fixed assets (121,795) (120,000)
Benefits 562,849 318,037 314,271
Bad debt expense 18,625
Cost of goods sold 1,200,000 (20,833)
Decontamination & disposal 26,758 26,758 26,758
Disposal costs-secondary wastes 112,496 105,018 431,112
Financing costs 212,000 9,000
Insurance 108,638 114,934 84,457
Legal services 342,713
Materials 1,151,084 866,199 418,286
Office expense & supplies 37,650 21,138 66,470
Other 18,202 57,436 8,528
Outside services 814,013 443,144 473,118
Professional services 857,587 59,868 145,646
Rent-equipment 104,873 39,324 87,631
Rent-office/buildings 264,752 317,269 107,221
Supplies-processing 18,515
Taxes 87,546 40,219 31,143
Telephone 134,438 46,167 38,809
Transportation 110,472 93,218 164,655
Travel & entertainment 43,509 71,260 80,591
Utilities 234,343 8,819 73,848
------------------------------------------------------
TOTAL COST OF GOODS SOLD 224,548 8,137,198 3,849,045 3,482,673
------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (224,548) (4,033,557) (2,051,638) (1,413,072)
------------------------------------------------------
INTEREST(INCOME) EXPENSE 62,539 90,855 91,010
DEPRECIATION AND AMORTIZATION 1,096,271 1,217,312 1,217,312
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE 440,000 428,250
OTHER (INCOME) EXPENSE (108,643)
(GAIN) LOSS ON SALE OF ASSETS
------------------------------------------------------
NET INCOME (LOSS) (224,548) (5,083,724) (3,799,805) (3,149,644)
======================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET REVENUE (INCOME) 2,643,744 4,467,381 3,203,483
------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 1,123,331 1,143,869 1,071,850
Less: Salaries & wages capitalized in fixed assets (87,816) (170,871)
Benefits 311,609 267,260 274,753
Bad debt expense
Cost of goods sold
Decontamination & disposal 26,758 26,758 26,758
Disposal costs-secondary wastes 522,653 417,282 834,424
Financing costs
Insurance 83,183 83,183 75,058
Legal services 45,265
Materials 562,465 999,505 578,194
Office expense & supplies 51,520 11,113 85,942
Other 4,343 1,769 1,253
Outside services 443,347 660,144 637,644
Professional services 124,269 (121,092)
Rent-equipment 58,604 36,257 49,284
Rent-office/buildings (94,110) 136,063 87,598
Supplies-processing
Taxes 35,459 41,746 99,650
Telephone 17,319 32,054 55,441
Transportation 132,244 152,740 77,421
Travel & entertainment 110,575 123,532 136,127
Utilities 48,105 79,853 77,656
------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 3,561,674 4,004,220 4,043,447 0 0
------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (917,930) 463,161 (839,964) 0 0
------------------------------------------------------------------
INTEREST(INCOME) EXPENSE 71,976 129,416 133,029
DEPRECIATION AND AMORTIZATION 1,230,989 1,215,466 1,234,516
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE 352,871 387,043 303,750
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS 3,966
------------------------------------------------------------------
NET INCOME (LOSS) (2,577,732) (1,268,764) (2,511,259) 0 0
==================================================================
</TABLE>
<PAGE> 8
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
<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) (5,083,724) (5,083,724) (3,799,805) (3,149,644)
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
Decrease (Increase)-Accounts Receivable 69,510 69,510 1,249,901 (424,891)
Decrease (Increase)-Inventories 1,642,739 1,642,739 18,296 28,299
Decrease (Increase)-Prepaid Expenses (488,182) (488,182) (157,770) (321,617)
Decrease (Increase)-Other Assets 13,597 13,597 (90,417) (14,442)
Increase (Decrease)-Pre Petition Liabilities (2,440,220) (2,440,220) 476,653 (1,657,847)
Increase (Decrease)-Post Petition Liabilities 3,076,569 3,076,569 (609,932) 2,677,217
--------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 (2,113,440) (2,113,440) (1,895,762) (1,645,613)
--------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (96,499) (96,499) (329,756) (441,187)
Sale of Net Fixed Assets
--------------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 (96,499) (96,499) (329,756) (441,187)
--------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 5,260,000 5,260,000 1,740,000 0
Increase (Decrease)-Shareholder Valuations 8,601 8,601 (4,772) 6,004
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
--------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 3,058,662 3,058,662 (490,290) (2,080,796)
Cash and Cash Equivalents at Beginning of Period 4,654,326 4,654,326 7,712,988 7,222,698
--------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 7,712,988 7,712,988 7,222,698 5,141,902
====================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
--------------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (2,577,732) (1,268,764) (2,511,259)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 1,230,989 1,215,466 1,246,691
Decrease (Increase)-Accounts Receivable (1,014,448) (589,823) 207,760
Decrease (Increase)-Inventories (299,222) 182,156 (262,546)
Decrease (Increase)-Prepaid Expenses (141,434) 254,680 (757,635)
Decrease (Increase)-Other Assets (351,297) 0 0
Increase (Decrease)-Pre Petition Liabilities (301,032) 754,545 (403,983)
Increase (Decrease)-Post Petition Liabilities 470,356 (185,309) 504,465
--------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (2,983,820) 362,951 (1,976,507) 0
--------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (451,118) (1,226,414) (976,221)
Sale of Net Fixed Assets (43,605)
--------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (494,723) (1,226,414) (976,221) 0
--------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 2,300,000
Increase (Decrease)-Shareholder Valuations 15,970 6,218 6,647
Purchase of Treasury Stock-Preferred Shares
--------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 15,970 6,218 2,306,647 0
--------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,462,573) (857,245) (646,081) 0
Cash and Cash Equivalents at Beginning of Period 5,141,902 1,679,329 822,084
--------------------------------------------------------
Cash and Cash Equivalents at End of Period 1,679,329 822,084 176,003 0
========================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
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
Executive Paid Gross Net
---------------------------------------------- -------------------- ---------------------------------
<S> <C> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 5/1, 5/15, & 5/29/98 37,962 25,071
Eugene Berman, VP, Regul, Legal, & Extern Aff 5/1, 5/15, & 5/29/98 20,588 16,864
F. Gordon Bitter, CEO & CFO, Director 5/1, 5/15, & 5/29/98 32,588 20,620
Steven Brien, VP, Chemical Sales & Marketing 5/1, 5/15, & 5/29/98 18,462 10,664
Victor E. Gatto, Jr., VP, Government Markets 5/1, 5/15, & 5/29/98 20,793 18,933
David Hoey, V,P Business Development 5/1, 5/15, & 5/29/98 19,318 12,611
F. James Howie, III, VP, Procurement 5/1, 5/15, & 5/29/98 16,217 10,321
Ethan E. Jacks, VP, General Counsel, Secretary 5/1, 5/15, & 5/29/98 19,898 11,827
James E. Johnston, VP, Technical Development 5/1, 5/15, & 5/29/98 16,414 10,086
Randall Jones, Assistant Secretary 5/1, 5/15, & 5/29/98 13,526 8,749
Christopher Nagel, Chief Technology Officer 5/1, 5/15, & 5/29/98 19,879 12,210
Charles W. Shaver, President & COO, Director 5/1, 5/15, & 5/29/98 30,280 19,235
---------------------------------
TOTAL EXECUTIVE PAYROLL 265,925 177,191
=================================
</TABLE>
<TABLE>
<CAPTION>
Name and Title of Taxes Withheld
Executive Due Paid
---------------------------------------------- -----------------------------------------------
<S> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 10,082 10,082
Eugene Berman, VP, Regul, Legal, & Extern Aff 1,403 1,403
F. Gordon Bitter, CEO & CFO, Director 9,895 9,895
Steven Brien, VP, Chemical Sales & Marketing 6,488 6,488
Victor E. Gatto, Jr., VP, Government Markets 1,115 1,115
David Hoey, V,P Business Development 5,421 5,421
F. James Howie, III, VP, Procurement 4,299 4,299
Ethan E. Jacks, VP, General Counsel, Secretary 5,675 5,675
James E. Johnston, VP, Technical Development 3,843 3,843
Randall Jones, Assistant Secretary 2,640 2,640
Christopher Nagel, Chief Technology Officer 4,992 4,992
Charles W. Shaver, President & COO, Director 7,820 7,820
------------------------------------------------
TOTAL EXECUTIVE PAYROLL 63,673 63,673
================================================
</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
CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- ------------------------------------------------------------------------------------------------------
<S> <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: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
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 (513,535) 0 (2,382) 1,175,210 0 28,036
PLUS: Deposits-Collections of A/R 94,507 2,395,820
Other Receipts 67,488
Loan Advances 2,300,000
LESS: Disbursements (4,694,593) (600)
Payroll (648,615) (418,675)
Returned Checks
Loan Repayments
OTHER: Adjustments (178,107) 178,107
Transfers In (Out) 2,501,182 670,000 (3,190,000) 420,000
------------------------------------------------------------------------------------------
ENDING BOOK BALANCE (423,058) 0 19,003 558,537 0 29,361
==========================================================================================
</TABLE>
<TABLE>
<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 6,543 136,006 (8,294) 0 500 822,084
PLUS: Deposits-Collections of A/R 2,490,327
Other Receipts 6,647 251,986 326,121
Loan Advances 2,300,000
0
LESS: Disbursements (4,695,193)
Payroll (1,067,290)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments 0
Transfers In (Out) (13,190) (387,992) 0
0
----------------------------------------------------------------------------------------
ENDING BOOK BALANCE 0 0 (8,294) 0 500 176,049
========================================================================================
0
</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.):
The Blackstone Group 133,418 5/11/98 41931
================
133,418
================
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: 5/26/98
-----------
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
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000 NW-0235
West Hartford, CT 06107 Shared Agg.
</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
29 South Main Street 12/31/98 $550 Not yet invoiced
West Hartford, CT 06107
</TABLE>
Page 13
<PAGE> 13
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
============================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
============================================================================================================================
<S> <C> <C> <C> <C>
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>
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 14
<PAGE> 14
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
=========================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION
ENTITY DATE
=========================================================================================================================
<S> <C> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 5/1-5/31/98
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 5/1-5/31/98
PO Box 5-0198
Woburn, MA 01815-0198
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 5/1-5/31/98
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 5/1-5/31/98
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT 5/1-5/31/98
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 5/1-5/31/98
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 5/1-5/31/98
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
UNUM Life Insurance Employee Funded Long Term Disability MMT 5/1-5/31/98
</TABLE>
<TABLE>
<CAPTION>
============================================================================
CARRIER NAME & ADDRESS PREMIUM PAID
THRU
============================================================================
<S> <C> <C>
Blue Cross & Blue Shield of RI $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. $1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. $1,185 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services $10,960 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services $8,231 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services $50,000 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
UNUM Life Insurance $1,951 Current
</TABLE>
Page 15 of 16
<PAGE> 15
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
=========================================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS EXPIRATION
ENTITY DATE
=========================================================================================================================
<S> <C> <C> <C> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 5/1-5/31/98
2211 Congress Street
Portland, ME 04122
</TABLE>
<TABLE>
<CAPTION>
============================================================================
CARRIER NAME & ADDRESS PREMIUM PAID
THRU
============================================================================
<S> <C> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
Page 16 of 16
<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: 5/31/98
COMES NOW, MOLTEN METAL TECHNOLOGY, INC. , Debtor in Possession, and hereby its
Monthly Operating Report for the period commencing 5/1/98 and ending 5/31/98 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: 6/26/98 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 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: 5/31/98
<TABLE>
<CAPTION>
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 4,893,869 6,713,407 4,953,236 4,072,063 474,472
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 1,094,993 891,484 451,441 392,839 830,839
Less: allowance for doubtful accounts
Accounts Receivable-Other 336,181 662,994 673,987 633,723 627,686
Accounts Receivable-Intercompany
Inventory, at cost 3,032,515 1,832,965 1,832,965 1,832,965 1,832,965
Prepaid expenses 2,994,736 3,276,848 3,447,882 3,783,158 3,998,312
Deposits 141,546 119,455 181,446 185,611 246,394
Other:
Investment in Nichimen Joint Venture 433,739 433,739 433,739 433,739 433,739
Investment in MMT of Tennessee 10 10 10 10 10
Investment in MMT Federal Holdings 1,000 1,000 1,000 1,000 1,000
Long Term Notes Receivable 1,806,950 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 4,020,750
----------------------------------------------------------------------
TOTAL CURRENT ASSETS 18,441,972 19,454,331 17,507,136 16,874,620 14,273,117
----------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 86,181,337 86,206,483 86,347,343 86,409,258 86,482,544
Less: Accumulated Depreciation (21,105,234) (21,693,189) (22,282,884) (22,872,579) (23,421,627)
----------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 65,076,103 64,513,294 64,064,459 63,536,679 63,060,917
----------------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 11,221,338 11,220,787 11,245,697 11,266,969 11,476,242
Less: Accumulated Amortization (1,765,428) (1,783,197) (1,801,012) (1,818,825) (1,839,916)
----------------------------------------------------------------------
TOTAL OTHER ASSETS 9,455,910 9,437,590 9,444,685 9,448,144 9,636,326
----------------------------------------------------------------------
TOTAL ASSETS 92,973,985 93,405,215 91,016,280 89,859,443 86,970,360
======================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
4/30/98 5/31/98
--------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash (373,368) (404,055)
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 277,703 226,397
Less: allowance for doubtful accounts
Accounts Receivable-Other 497,002 700,005
Accounts Receivable-Intercompany
Inventory, at cost 1,832,965 1,832,965
Prepaid expenses 4,517,384 3,669,726
Deposits 246,394 246,394
Other:
Investment in Nichimen Joint Venture 433,739 433,739
Investment in MMT of Tennessee 10 10
Investment in MMT Federal Holdings 1,000 1,000
Long Term Notes Receivable 1,806,950 1,806,950
Restricted Cash Collateral Deposits 4,020,750 4,020,750
--------------------------------------------
TOTAL CURRENT ASSETS 13,260,529 12,533,881 0
--------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 86,522,002 87,221,428
Less: Accumulated Depreciation (23,994,609) (24,567,381)
--------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 62,527,393 62,654,047 0
--------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 11,565,648 11,641,734
Less: Accumulated Amortization (1,872,238) (1,911,432)
--------------------------------------------
TOTAL OTHER ASSETS 9,693,410 9,730,302 0
--------------------------------------------
TOTAL ASSETS 85,481,332 84,918,230 0
============================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
<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 9,300,000 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 9,059,257 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 198,513,032 198,221,086 196,932,030 199,566,949
---------------------------------------------------------------
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
===============================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
---------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 7,000,000 7,000,000 9,300,000
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations (3,038,101) (4,245,999) (5,806,354)
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 2,468,346 2,164,943 2,975,597
---------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 6,430,245 4,918,944 6,469,243 0
PRE PETITION INTERCOMPANY LIABILITIES (126,615,241) (126,615,241) (126,615,241)
DEFERRED REVENUE/DEFERRED INCOME 9,123,593 8,888,307 8,805,851
TOTAL OTHER PRE PETITION LIABILITIES 199,295,786 200,075,660 200,292,269
---------------------------------------------------------------
TOTAL LIABILITIES 88,234,383 87,267,670 88,952,122 0
---------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock 18,371,126 18,011,989 17,652,851
Common Stock 237,810 237,810 237,810
Paid in Capital 170,893,690 170,893,690 170,893,690
Valuation Allowance 9,323 9,323 9,323
Dividends Paid (6,839,885) (6,480,748) (6,121,610)
Treasury Stock (1,251,319) (1,251,319) (1,251,319)
Deferred Compensation (101,191) (94,758) (88,111)
Retained Earnings 0
Through Filing Date (171,362,447) (171,362,447) (171,362,447)
Post Filing Date (11,221,130) (11,749,878) (14,004,079)
---------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (1,264,023) (1,786,338) (4,033,892) 0
---------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 86,970,360 85,481,332 84,918,230 0
===============================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
<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
====================================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
DATE DATE TOTAL
INCURRED DUE DUE
-------------------------------------------
<S> <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
-------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens Waterfall Financing 3/20/98-5/31/98 12/31/99 9,300,000
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens Waterfall Financing
-------------
TOTAL POST PETITION SECURED DEBT 9,300,000
-------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules) 1,646,389
Payroll withholdings
Accrued Payroll
Accrued expenses-Estimated liability incurred, but not invoiced
as of the end of the period and deferred obligations. 1,329,208
-------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 2,975,597
-------------
TOTAL ALL POST PETITION LIABILITIES 12,275,597
=============
</TABLE>
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
DAYS DAYS DAYS 90 DAYS
------------------------------------------------------
<S> <C> <C> <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 0 0
------------------------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens Waterfall Financing
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens Waterfall Financing
------------------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0 0
------------------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules)
Payroll withholdings
Accrued Payroll
Accrued expenses-Estimated liability incurred, but not invoiced
as of the end of the period and deferred obligations.
------------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 0 0 0 0
------------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 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: 5/31/98
<TABLE>
<CAPTION>
PRE POST MONTH MONTH
PETITION PETITION ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------------------------------------------------
<S> <C> <C> <C> <C>
NET REVENUE (INCOME) 1,871,483 0
------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 1,154,821 868,277 666,693
Less: Salaries & wages capitalized in fixed assets 0
Benefits 489,984 226,464 207,528
Bad debt expense 0
Cost of goods sold 1,200,000 (20,833)
Decontamination & disposal 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
Legal services 0
Materials 391,707 70,359 (289,672)
Office expense & supplies 248 (7,193) 58,624
Other 4,393 57,436 416
Outside services 369,073 143,619 (213,980)
Professional services 1,073,857 (99,264) 60,575
Rent-equipment 73,365 1,759 42,453
Rent-office/buildings 260,103 307,269 102,221
Supplies-processing (15,755)
Taxes 79,546 23,100 23,143
Telephone 123,714 34,394 36,810
Transportation 3,355 20,000 (10,055)
Travel & entertainment 20,585 50,206 55,770
Utilities 200,831 3,345 39,704
------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 5,902,094 1,685,674 863,244
------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 (4,030,611) (1,685,674) (863,244)
------------------------------------------------------
INTEREST EXPENSE 90,855 90,960
DEPRECIATION AND AMORTIZATION 605,724 607,511 607,510
INCOME TAX EXPENSE (BENEFIT) 0
REORGANIZATION EXPENSE 440,000 428,000
OTHER (INCOME) EXPENSE 0
(GAIN) LOSS ON SALE OF ASSETS 0
------------------------------------------------------
NET INCOME (LOSS) 0 (4,636,335) (2,824,040) (1,989,714)
======================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET REVENUE (INCOME) 438,373 1,745,985 242,662
------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 595,742 558,048 441,216
Less: Salaries & wages capitalized in fixed assets (10,791)
Benefits 226,374 174,882 157,929
Bad debt expense
Cost of goods sold (20,833)
Decontamination & disposal 18,888 18,888 18,888
Disposal costs-secondary wastes (61,832) (12,447)
Financing costs
Insurance 62,851 62,851 62,851
Legal services 45,265
Materials 29,516 93,000 112,049
Office expense & supplies 48,345 13,330 (2,181)
Other 3,162 1,959 951
Outside services 83,245 57,665 195,970
Professional services 111,138 (142,485) 93,754
Rent-equipment 19,203 5,635 13,116
Rent-office/buildings (94,110) 126,063 82,598
Supplies-processing
Taxes 23,656 69,948 59,400
Telephone 17,060 30,525 46,536
Transportation 13,981 16,760
Travel & entertainment 61,786 85,638 86,258
Utilities (16,525) 44,973 36,887
------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 1,169,498 1,153,069 1,445,009 0 0
------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (731,125) 592,916 (1,202,347) 0 0
------------------------------------------------------------------
INTEREST EXPENSE 71,976 129,317 132,979
DEPRECIATION AND AMORTIZATION 594,069 605,304 612,072
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE 343,147 387,043 306,803
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS 30,724
------------------------------------------------------------------
NET INCOME (LOSS) (1,771,041) (528,748) (2,254,201) 0 0
==================================================================
</TABLE>
<PAGE> 8
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
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
EXECUTIVE PAID GROSS NET
-------------------------- -----------------------------------------------
<S> <C> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 5/1, 5/15, & 5/29/98 37,962 25,071
Eugene Berman, VP, Regul, Legal, & Extern Aff 5/1, 5/15, & 5/29/98 20,588 16,864
F. Gordon Bitter, CEO & CFO, Director 5/1, 5/15, & 5/29/98 32,588 20,620
Steven Brien, VP, Chemical Sales & Marketing 5/1, 5/15, & 5/29/98 18,462 10,664
Victor E. Gatto, Jr., VP, Government Markets 5/1, 5/15, & 5/29/98 20,793 18,933
David Hoey, V,P Business Development 5/1, 5/15, & 5/29/98 19,318 12,611
F. James Howie, III, VP, Procurement 5/1, 5/15, & 5/29/98 16,217 10,321
Ethan E. Jacks, VP, General Counsel, Secretary 5/1, 5/15, & 5/29/98 19,898 11,827
James E. Johnston, VP, Technical Development 5/1, 5/15, & 5/29/98 16,414 10,086
Randall Jones, Assistant Secretary 5/1, 5/15, & 5/29/98 13,526 8,749
Christopher Nagel, Chief Technology Officer 5/1, 5/15, & 5/29/98 19,879 12,210
Charles W. Shaver, President & COO, Director 5/1, 5/15, & 5/29/98 30,280 19,235
-------------------------
TOTAL EXECUTIVE PAYROLL 265,925 177,191
=========================
</TABLE>
<TABLE>
<CAPTION>
NAME AND TITLE OF TAXES WITHHELD
EXECUTIVE DUE PAID
-------------------------- -----------------------------
<S> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 10,082 10,082
Eugene Berman, VP, Regul, Legal, & Extern Aff 1,403 1,403
F. Gordon Bitter, CEO & CFO, Director 9,895 9,895
Steven Brien, VP, Chemical Sales & Marketing 6,488 6,488
Victor E. Gatto, Jr., VP, Government Markets 1,115 1,115
David Hoey, V,P Business Development 5,421 5,421
F. James Howie, III, VP, Procurement 4,299 4,299
Ethan E. Jacks, VP, General Counsel, Secretary 5,675 5,675
James E. Johnston, VP, Technical Development 3,843 3,843
Randall Jones, Assistant Secretary 2,640 2,640
Christopher Nagel, Chief Technology Officer 4,992 4,992
Charles W. Shaver, President & COO, Director 7,820 7,820
-----------------------------
TOTAL EXECUTIVE PAYROLL 63,673 63,673
=============================
</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>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
</TABLE>
<PAGE> 9
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
TOTAL
PRE POST MONTH MONTH
PETITION PETITION ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98
---------------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (4,636,335) (4,636,335) (2,824,040)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 605,724 605,724 607,510
Decrease (Increase)-Accounts Receivable (123,304) (123,304) 429,050
Decrease (Increase)-Inventories 1,199,550 1,199,550 0
Decrease (Increase)-Prepaid Expenses (282,112) (282,112) (171,034)
Decrease (Increase)-Other Assets 13,596 13,596 (95,902)
Increase (Decrease)-Pre Petition Liabilities (291,946) (291,946) (1,289,056)
Increase (Decrease)-Post Petition Liabilities 1,892,945 1,892,945 (2,133,688)
Increase (Decrease)-Deferred Revenue (1,809,090) (1,809,090) (177,379)
---------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 (3,430,972) (3,430,972) (5,654,539)
---------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (25,146) (25,146) (140,860)
Sale of Net Fixed Assets
---------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 (25,146) (25,146) (140,860)
---------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 5,260,000 5,260,000 4,040,000
Increase (Decrease)-Shareholder Valuations 15,656 15,656 (4,772)
Purchase of Treasury Stock-Preferred Shares
---------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 5,275,656 5,275,656 4,035,228
---------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 1,819,538 1,819,538 (1,760,171)
Cash and Cash Equivalents at Beginning of Period 4,893,869 4,893,869 6,713,407
---------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 6,713,407 6,713,407 4,953,236
=========================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
2/28/98 3/31/98 4/30/98 5/31/98
---------------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (1,989,714) (1,771,041) (528,748) (2,254,201)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 607,508 570,139 605,304 611,966
Decrease (Increase)-Accounts Receivable 98,866 (431,963) 683,820 (151,697)
Decrease (Increase)-Inventories 0 0 0 0
Decrease (Increase)-Prepaid Expenses (335,276) (215,154) (519,072) 847,658
Decrease (Increase)-Other Assets (33,519) (558,244) (89,406) (76,086)
Increase (Decrease)-Pre Petition Liabilities 2,634,919 (271,163) 779,874 216,609
Increase (Decrease)-Post Petition Liabilities 503,681 (832,693) (1,511,301) (749,701)
Increase (Decrease)-Deferred Revenue (20,833) (20,833) (235,286) (82,456)
---------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,465,632 (3,530,952) (814,815) (1,637,908)
---------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (61,915) (73,286) (39,458) (699,426)
Sale of Net Fixed Assets
---------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (61,915) (73,286) (39,458) (699,426)
---------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall (2,300,000) 0 0 2,300,000
Increase (Decrease)-Shareholder Valuations 15,110 6,647 6,433 6,647
Purchase of Treasury Stock-Preferred Shares
---------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES (2,284,890) 6,647 6,433 2,306,647
---------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (881,173) (3,597,591) (847,840) (30,687)
Cash and Cash Equivalents at Beginning of Period 4,953,236 4,072,063 474,472 (373,368)
---------------------------------------------------------
Cash and Cash Equivalents at End of Period 4,072,063 474,472 (373,368) (404,055)
=========================================================
</TABLE>
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 5/31/98
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
MMT MMT MMT
OPERATING PAYROLL PAYROLL
-------------------------------------------------
<S> <C> <C> <C>
BANK NAME U.S. TRUST U.S. TRUST NATIONSBANK
ACCOUNT NUMBER 1100937836 1100937844 3001270655
BEGINNING BOOK BALANCE (513,535) 0 (2,382)
PLUS: Deposits-Collections of A/R 94,507
Other Receipts 67,488
Loan Advances 2,300,000
LESS: Disbursements (4,694,593)
Payroll (648,615)
Returned Checks
Loan Repayments
OTHER: Adjustments (178,107)
Transfers In (Out) 2,501,182 670,000
-------------------------------------------------
ENDING BOOK BALANCE (423,058) 0 19,003
=================================================
</TABLE>
<TABLE>
<CAPTION>
ALEX OPPEN- ESCROW AT
BROWN HEIMER ROPES TOTAL
-------------------------------------------------------
<S> <C> <C> <C> <C>
ALEX OPPEN- ROPES &
BANK NAME BROWN HEIMER GRAY
ACCOUNT NUMBER 210-71007 033-82238
BEGINNING BOOK BALANCE 6,543 136,006 0 (373,368)
PLUS: Deposits-Collections of A/R 94,507
Other Receipts 6,647 251,986 326,121
Loan Advances 2,300,000
0
LESS: Disbursements (4,694,593)
Payroll (648,615)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments (178,107)
Transfers In (Out) (13,190) (387,992) 2,770,000
0
-------------------------------------------------------
ENDING BOOK BALANCE 0 0 0 (404,055)
=======================================================
</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> <C>
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
The Blackstone Group 133,418 5/11/98 41931
====================
133,418
====================
PRE-PETITION DEBTS
====================
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
====================
</TABLE>
<PAGE> 11
INSURANCE EXPIRATION STATEMENT
<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: 5/26/98
-----------
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
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> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 5/1-5/31/98 $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 5/1-5/31/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 5/1-5/31/98 $1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 5/1-5/31/98 $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 5/1-5/31/98 $10,960 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 5/1-5/31/98 $8,231 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 5/1-5/31/98 $50,000 Current
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
UNUM Life Insurance Employee Funded Long Term Disability MMT 5/1-5/31/98 $1,951 Current
</TABLE>
Page 13 of 14
<PAGE> 13
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> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 5/1-5/31/98 $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
Page 14 of 14
<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: 5/31/98
COMES NOW, MMT OF TENNESSEE, INC. , Debtor in Possession, and hereby its Monthly
Operating Report for the period commencing 5/1/98 and ending 5/31/98 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: 6/26/98 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
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
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 expenses among the affiliated
entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
Case name: MMT OF TENNESSEE, INC.
Case Number: 97-21386-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
--------------------------------------------------------
ASSETS
CURRENT ASSETS
<S> <C> <C> <C> <C>
Cash 66,358 1,007,375 2,277,256 1,077,633
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
Less: allowance for doubtful accounts (150,000) (150,000) (150,000) (150,000)
Accounts Receivable-Other 291,141 156,625 207,867 693,516
Inventory, at cost 1,610,203 1,167,014 1,148,718 1,120,419
Prepaid expenses 30,357 155,838 145,218 128,915
Deposits 57,500 57,500 76,925 79,120
Other:
Restricted Cash Collateral Deposits 215,520 215,520 215,520 215,520
--------------------------------------------------------
TOTAL CURRENT ASSETS 8,615,682 9,486,433 9,923,326 9,216,800
--------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 61,645,241 61,716,593 61,880,581 62,238,580
Less: Accumulated Depreciation (2,104,309) (2,281,673) (2,598,650) (2,915,627)
--------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 59,540,932 59,434,920 59,281,931 59,322,953
--------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 12,508,628 12,508,628 12,508,630 12,508,629
Less: Accumulated Amortization (2,344,293) (2,509,114) (2,665,588) (2,822,059)
--------------------------------------------------------
TOTAL OTHER ASSETS 10,164,335 9,999,514 9,843,042 9,686,570
--------------------------------------------------------
TOTAL ASSETS 78,320,949 78,920,867 79,048,299 78,226,323
========================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
---------------------------------------------------------
ASSETS
CURRENT ASSETS
<S> <C> <C> <C> <C>
Cash 1,212,651 1,206,564 587,898
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 6,624,034 7,385,716 7,136,438
Less: allowance for doubtful accounts (150,000) (150,000) (150,000)
Accounts Receivable-Other 692,222 1,203,183 1,096,325
Inventory, at cost 1,369,641 1,237,485 1,500,031
Prepaid expenses 107,515 97,109 71,069
Deposits 81,446 81,446 81,446
Other:
Restricted Cash Collateral Deposits 215,520 215,520 215,520
---------------------------------------------------------
TOTAL CURRENT ASSETS 10,153,029 11,277,023 10,538,727 0
---------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 62,407,138 62,689,022 64,521,062
Less: Accumulated Depreciation (3,240,046) (3,557,383) (3,899,284)
---------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 59,167,092 59,131,639 60,621,778 0
---------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 12,508,629 12,508,630 12,508,629
Less: Accumulated Amortization (2,978,531) (3,135,004) (3,291,475)
---------------------------------------------------------
TOTAL OTHER ASSETS 9,530,098 9,373,626 9,217,154 0
---------------------------------------------------------
TOTAL ASSETS 78,850,219 79,782,288 80,377,659 0
=========================================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 5/31/98
<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)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations 1,209,386 2,137,381 1,765,503
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 35,238 306,240 2,851,654
--------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 1,244,624 2,443,621 4,617,157
PRE PETITION INTERCOMPANY LIABILITIES 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
TOTAL OTHER PRE PETITION LIABILITIES 2,666,165 2,274,081 2,274,081 294,367
--------------------------------------------------------------
TOTAL LIABILITIES 94,601,823 95,508,521 96,475,366 96,676,969
--------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock 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)
Post Filing Date (306,780) (1,146,193) (2,169,772)
--------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (16,280,874) (16,587,654) (17,427,067) (18,450,646)
-------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 78,320,949 78,920,867 79,048,299 78,226,323
=============================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
-------------------------------------------------------------
<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 2,973,763 4,181,934 5,742,335
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 2,945,864 3,063,958 2,757,770
-------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 5,919,627 7,245,892 8,500,105 0
PRE PETITION INTERCOMPANY LIABILITIES 90,708,931 90,708,931 90,708,931
DEFERRED REVENUE/DEFERRED INCOME 1,056,514 1,459,677 1,388,645
TOTAL OTHER PRE PETITION LIABILITIES 285,142 138,445 (328,660)
-------------------------------------------------------------
TOTAL LIABILITIES 97,970,214 99,552,945 100,269,021 0
-------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock 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)
Post Filing Date (2,839,121) (3,489,783) (3,610,488)
-------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (19,119,995) (19,770,657) (19,891,362) 0
-------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 78,850,219 79,782,288 80,377,659 0
=============================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 5/31/98
<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 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 0
--------------------------------------------------------------------
6,624,034 2,568,080 1,505,814 345,094 2,205,046
====================================================================
MONTH: 4/30/98 7,385,716 3,155,026 851,867 791,510 2,587,313
Allowance for doubtful accounts 0
--------------------------------------------------------------------
7,385,716 3,155,026 851,867 791,510 2,587,313
====================================================================
MONTH: 7,485,882 1,810,443 2,879,549 361,683 2,434,207
Allowance for doubtful accounts
--------------------------------------------------------------------
7,485,882 1,810,443 2,879,549 361,683 2,434,207
====================================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 5/31/98
<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
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-Estimated liability incurred, 2,757,770
but not invoiced as of the end of the period.
---------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 2,757,770 0 0 0 0
---------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 2,757,770 0 0 0 0
=============================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 5/31/98
<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
--------------------------------------------------------------------
NET REVENUE (INCOME) 2,232,158 1,797,407 2,069,601 2,205,371
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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 MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
4/30/98 5/31/98
-----------------------------------------------------
NET REVENUE (INCOME) 2,721,396 2,960,820
-----------------------------------------------------
<S> <C> <C> <C> <C>
COST OF GOODS SOLD
Salaries & wages 490,006 630,634
Less: Salaries & wages capitalized in fixed assets (160,080)
Benefits 100,378 116,823
Bad debt expense
Cost of goods sold
Decontamination & disposal 7,870 7,870
Disposal costs-secondary wastes 26,866 846,871
Financing costs
Insurance 20,331 12,206
Legal services
Materials 905,582 466,187
Office expense & supplies (1,278) 88,123
Other 353 265
Outside services 745,567 187,898
Professional services 330,022 140,188
Rent-equipment 30,622 36,168
Rent-office/buildings 10,000 5,000
Supplies-processing
Taxes 18,768 40,250
Telephone 1,529 8,904
Transportation 138,760 77,439
Travel & entertainment 37,894 49,869
Utilities 34,880 40,769
-----------------------------------------------------
TOTAL COST OF GOODS SOLD 2,898,150 2,595,384 0 0
-----------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (176,754) 365,436 0 0
-----------------------------------------------------
INTEREST EXPENSE 100 50
DEPRECIATION AND AMORTIZATION 473,808 486,091
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-----------------------------------------------------
NET INCOME (LOSS) (650,662) (120,705) 0 0
=====================================================
</TABLE>
<PAGE> 8
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
TOTAL TOTAL
PRE POST MONTH MONTH
PETITION PETITION ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98
---------------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (306,780) (306,780) (839,413)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 342,185 342,185 473,449
Decrease (Increase)-Accounts Receivable (247,442) (247,442) 823,497
Decrease (Increase)-Inventories 443,189 443,189 18,296
Decrease (Increase)-Prepaid Expenses (125,481) (125,481) 10,620
Decrease (Increase)-Other Assets 0 0 (19,427)
Increase (Decrease)-Pre Petition Liabilities (392,084) (392,084) 0
Increase (Decrease)-Deferred revenue 54,158 54,158 (232,150)
Increase (Decrease)-Post Petition Liabilities 1,244,624 1,244,624 1,198,997
---------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 1,012,369 1,012,369 1,433,869
---------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (71,352) (71,352) (163,988)
Sale of Net Fixed Assets
---------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 (71,352) (71,352) (163,988)
---------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0
Increase (Decrease)-Shareholder Valuations 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 0 941,017 941,017 1,269,881
Cash and Cash Equivalents at Beginning of Period 66,358 66,358 1,007,375
---------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 1,007,375 1,007,375 2,277,256
=========================================================
</TABLE>
<TABLE>
<CAPTION>
TOTAL TOTAL
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
2/28/98 3/31/98 4/30/98 5/31/98
---------------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (1,023,579) (669,349) (650,662) (120,705)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 473,449 480,892 473,808 486,091
Decrease (Increase)-Accounts Receivable (535,504) (571,063) (1,272,643) 356,136
Decrease (Increase)-Inventories 28,299 (249,222) 132,156 (262,546)
Decrease (Increase)-Prepaid Expenses 16,303 21,400 10,406 26,040
Decrease (Increase)-Other Assets (2,194) (2,326) 2 2
Increase (Decrease)-Pre Petition Liabilities (1,979,714) (9,225) (146,697) (467,105)
Increase (Decrease)-Deferred revenue 7,780 (1) 403,162 (71,033)
Increase (Decrease)-Post Petition Liabilities 2,173,536 1,302,470 1,326,265 1,254,213
---------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (841,624) 303,576 275,797 1,201,093
---------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (357,999) (168,558) (281,884) (1,832,040)
Sale of Net Fixed Assets
---------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (357,999) (168,558) (281,884) (1,832,040)
---------------------------------------------------------
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 (1,199,623) 135,018 (6,087) (630,947)
Cash and Cash Equivalents at Beginning of Period 2,277,256 1,077,633 1,212,651 1,206,564
---------------------------------------------------------
Cash and Cash Equivalents at End of Period 1,077,633 1,212,651 1,206,564 575,617
=========================================================
</TABLE>
<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: 5/31/98
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>
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 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>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
</TABLE>
<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
------------------------------------------------------------
<S> <C> <C> <C> <C>
BANK NAME U.S. TRUST U.S. TRUST NATIONSBANK
ACCOUNT NUMBER 110937851 1100937869 3001270846
BEGINNING BOOK BALANCE 1,175,210 0 28,036 1,203,246
PLUS: Deposits-Collections of A/R 2,395,820 2,395,820
Other Receipts 0
Loan Advances 0
0
LESS: Disbursements (600) (600)
Payroll (418,675) (418,675)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments 178,107 178,107
Transfers In (Out) (3,190,000) 420,000 (2,770,000)
0
----------------------------------------------------------
ENDING BOOK BALANCE 558,537 0 29,361 587,898
==========================================================
</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
<TABLE>
<CAPTION>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- ------------------------------------------------------------------------------------------------------------------------------
<S> <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: 5/26/98
---------
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
==========================================================================================
<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 Pollution Liability - MA/TN Aon
Line 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
29 South Main Street Master Worker Certificate - TN J&H/M&M
West Hartford, CT 06107
</TABLE>
<TABLE>
<CAPTION>
=============================================================================================================
CARRIER NAME & ADDRESS LIMITS POLICY EXPIRATION PREMIUM PAID
NUMBER DATE THRU
=============================================================================================================
<S> <C> <C> <C> <C> <C>
Commerce & Industry Insurance Co. $ 1,000,000 340-94-76 12/3/98 $ 53,000 Current
70 Pine Street $ 1,000,000 766-56-11 12/3/98 $ 3,540 Current
New York, NY 10270 $20,000,000 606-23-31 12/3/98 $ 43,185 Current
excess of $1M
New Hampshire Insurance Co. Statutory WC588-59-75 12/3/98 $111,250 Current
70 Pine Street Statutory WC588-59-77 12/3/98 $ 753 Current
New York NY 10270 $ 1,000,000 WC588-59-75 12/3/98 inclu. Current
and -77[CA]
American International Specialty $ 3,000,000 8199951 12/3/98 $ 28,342 Current
Line Insurance Co. $ 1,000,000 8199950 12/3/98 $ 16,919 Current
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company $ 500,000 751-118812-9 5/9/99 $ 6,000 Current
P.O. Box 91394 $ 2,000,000 751-118834-9 5/9/99 $ 6,000 Current
Chicago, IL 60693
Executive Risk Indemnity Company $10,000,000 751-091628-9 1/19/99 $350,000 Current
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies $ 1,000,000 PST 00 9648288 2/1/99 $ 2,000 Current
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. $147,000,000 CC626 12/2/98 $170,000 Current
Allendale Park Blanket
Johnston, RI 02919
American Nuclear Insurers $ 45,000,000 98262 1/1/99 $ 97,500 Current
Town Center $ 50,000,000 NF-0338 12/31/98 $124,215 Current
29 South Main Street $200,000,000 NW-0235 12/31/98 $ 550 Not yet invoiced
West Hartford, CT 06107 Shared Agg.
</TABLE>
Page 12
<PAGE> 13
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
=============================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS
=============================================================================================================
<S> <C> <C> <C>
Nuclear Supplier's & Transp. J&H/M&M $ 15,000,000
Nuclear Liability Facility Form - SC J&H/M&M $ 10,000,000
Nuclear Foreign Supplier's & Transp. J&H/M&M $ 10,000,000
Master Worker Certificate - SC J&H/M&M $200,000,000
Shared Agg.
Nuclear Facility Liability - Comm. Park J&H/M&M $ 10,000,000
Master Worker Certificate - Comm. Park J&H/M&M $200,000,000
Shared Agg.
American International Specialty Pollution Legal and Closure/Post Closure J&H/M&M $ 3,000,000
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 POLICY EXPIRATION PREMIUM PAID
NUMBER DATE THRU
=============================================================================================
<S> <C> <C> <C> <C>
NS-0539 12/31/98 $ 8,670 Current
NF-0329 12/31/98 $ 13,590 Current
TBD 12/31/98 TBD Based on Foreign Sales
NW-0237 12/31/98 $ 550 Not yet invoiced
NF-0337 12/31/98 $ 39,568 Current
NW-0234 12/31/98 $ 550 Not yet invoiced
American International Specialty 8183013 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
<TABLE>
<CAPTION>
======================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS
ENTITY
======================================================================================================
<S> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT
PO Box 5-0198
Woburn, MA 01815-0198
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT &
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
UNUM Life Insurance Employee Funded Long Term Disability MMT
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
==============================================================================================
<S> <C> <C> <C>
Blue Cross & Blue Shield of RI 5/1-5/31/98 $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan 5/1-5/31/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. 5/1-5/31/98 $ 1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. 5/1-5/31/98 $ 1,185 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services 5/1-5/31/98 $10,960 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services 5/1-5/31/98 $ 8,231 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services 5/1-5/31/98 $50,000 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
UNUM Life Insurance 5/1-5/31/98 $ 1,951 Current
</TABLE>
Page 14 of 15
<PAGE> 15
Molten Metal Technology Insurance Schedule
Exhibit A
<TABLE>
<CAPTION>
======================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS
ENTITY
======================================================================================================
<S> <C> <C> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT
2211 Congress Street
Portland, ME 04122
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
==============================================================================================
<S> <C> <C> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance 5/1-5/31/98 $ 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: 5/31/98
COMES NOW, MMT FEDERAL HOLDINGS, INC. , Debtor in Possession, and hereby its
Monthly Operating Report for the period commencing 5/1/98 and ending 5/31/98 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: 6/26/98 DEBTOR-IN-POSSESSION
------
By:/s/ F. Gordon Bitter
--------------------------------
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 expenses among the affiliated
entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 5/31/98
<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 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
Lockheed Martin Chemical Demilitarization Unknown Unknown Unknown Unknown
LLC (50% owned, 50% owned by
Lockheed Martin)
----------------------------------------------------------
TOTAL CURRENT ASSETS 500 500 500 500
----------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
----------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 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
----------------------------------------------------------
TOTAL ASSETS 500 500 500 500
==========================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
---------------------------------------------------------
<S> <C> <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 0
---------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
---------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 0 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 0
---------------------------------------------------------
TOTAL ASSETS 500 500 500 0
=========================================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 5/31/98
<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)
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
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES
----------------------------------------------------------------
TOTAL LIABILITIES 0 0 0 0
----------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock 10 10 10 10
Paid in Capital 990 990 990 990
Valuation Allowance (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
----------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 500 500 500 500
================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
-------------------------------------------------------------
<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
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4)
-------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES
-------------------------------------------------------------
TOTAL LIABILITIES 0 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 0
-------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 500 500 500 0
=============================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 5/31/98
<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 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
=============================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 5/31/98
<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
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
INCOME STATEMENT FORM OPR-5
CASE NAME: MMT FEDERAL HOLDINGS,
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 5/31/98
<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)
----------------------------------------------------------------
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
----------------------------------------------------------
<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 0 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
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
TOTAL
PRE POST MONTH MONTH
PETITION PETITION ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98
------------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) NONE NONE NONE
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 0 0 0
Decrease (Increase)-Accounts Receivable 0 0 0
Decrease (Increase)-Inventories 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0
Decrease (Increase)-Other Assets 0 0 0
Increase (Decrease)-Pre Petition Liabilities 0 0 0
Increase (Decrease)-Post Petition Liabilities 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
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
Increase (Decrease)-Shareholder Valuations 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
------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 500 500 500
======================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
2/28/98 3/31/98 4/30/98 5/31/98
--------------------------------------------------------
<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: 5/31/98
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>
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
--------------------------------------------------------
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>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEE ATTACHED INSURANCE
EXPIRATION CERTIFICATE
</TABLE>
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
Case Name: MMT FEDERAL HOLDINGS, INC.
Case Number: 97-21387-CJK
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
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 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
<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: 5/26/98
-------
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>
============================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS
============================================================================================================
<S> <C> <C> <C>
Commerce & Industry Insurance Co. General Liability Aon $ 1,000,000
70 Pine Street Automobile Liability Aon $ 1,000,000
New York, NY 10270 Excess Liability - 1st layer Aon $ 20,000,000
excess of $1M
New Hampshire Insurance Co. Workers Compensation Aon Statutory
70 Pine Street Workers Compensation - CA Aon Statutory
New York NY 10270 Employers' Liability Aon $ 1,000,000
American International Specialty Lines Pollution Liability - MA/TN Aon $ 3,000,000
Insurance Co. Pollution Liability - TX Aon $ 1,000,000
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company Fidelity Aon $ 500,000
P.O. Box 91394 Fiduciary Aon $ 2,000,000
Chicago, IL 60693
Executive Risk Indemnity Company Directors & Officers Liability Aon $10,000,000
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability Aon $ 1,000,000
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. Property Aon $147,000,000
Allendale Park Blanket
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property J&H/M&M $ 45,000,000
Town Center Nuclear Liability Facility Form - TN J&H/M&M $ 50,000,000
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000
West Hartford, CT 06107 Shared Agg.
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
CARRIER NAME & ADDRESS POLICY EXPIRATION PREMIUM PAID
NUMBER DATE THRU
==============================================================================================================
<S> <C> <C> <C> <C>
Commerce & Industry Insurance Co. 340-94-76 12/3/98 $ 53,000 Current
70 Pine Street 766-56-11 12/3/98 $ 3,540 Current
New York, NY 10270 606-23-31 12/3/98 $ 43,185 Current
New Hampshire Insurance Co. WC588-59-75 12/3/98 $111,250 Current
70 Pine Street WC588-59-77 12/3/98 $ 753 Current
New York NY 10270 WC588-59-75 12/3/98 inclu. Current
and -77[CA]
American International Specialty Line 8199951 12/3/98 $ 28,342 Current
Insurance Co. 8199950 12/3/98 $ 16,919 Current
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company 751-118812-98 5/9/99 $ 6,000 Current
P.O. Box 91394 751-118834-98 5/9/99 $ 6,000 Current
Chicago, IL 60693
Executive Risk Indemnity Company 751-091628-98 1/19/99 $350,000 Current
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies PST 00 9648288 2/1/99 $ 2,000 Current
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. CC626 12/2/98 $170,000 Current
Allendale Park
Johnston, RI 02919
American Nuclear Insurers 98262 1/1/99 $ 97,500 Current
Town Center NF-0338 12/31/98 $124,215 Current
29 South Main Street NW-0235 12/31/98 $ 550 Not yet invoiced
West Hartford, CT 06107
</TABLE>
Page 12
<PAGE> 13
<TABLE>
<CAPTION>
=================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS
=================================================================================================================
<S> <C> <C> <C>
Nuclear Supplier's & Transp. J&H/M&M $ 15,000,000
Nuclear Liability Facility Form - SC J&H/M&M $ 10,000,000
Nuclear Foreign Supplier's & Transp. J&H/M&M $ 10,000,000
Master Worker Certificate - SC J&H/M&M $200,000,000
Shared Agg.
Nuclear Facility Liability - Comm. Park J&H/M&M $ 10,000,000
Master Worker Certificate - Comm. Park J&H/M&M $200,000,000
Shared Agg.
American International Specialty Pollution Legal and Closure/Post Closure J&H/M&M $3,000,000
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 POLICY EXPIRATION PREMIUM PAID
NUMBER DATE THRU
==============================================================================================================
<S> <C> <C> <C> <C>
NS-0539 12/31/98 $ 8,670 Current
NF-0329 12/31/98 $ 13,590 Current
TBD 12/31/98 TBD Based on Foreign Sales
NW-0237 12/31/98 $ 550 Not yet invoiced
NF-0337 12/31/98 $ 39,568 Current
NW-0234 12/31/98 $ 550 Not yet invoiced
American International Specialty 8183013 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
ENTITY
============================================================================================================
<S> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT
PO Box 5-0198
Woburn, MA 01815-0198
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT &
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
UNUM Life Insurance Employee Funded Long Term Disability MMT
</TABLE>
<TABLE>
<CAPTION>
=========================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
=========================================================================================
<S> <C> <C> <C>
Blue Cross & Blue Shield of RI 5/1-5/31/98 $ 10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan 5/1-5/31/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. 5/1-5/31/98 $ 1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. 5/1-5/31/98 $ 1,185 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services 5/1-5/31/98 $ 10,960 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services 5/1-5/31/98 $ 8,231 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services 5/1-5/31/98 $ 50,000 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
UNUM Life Insurance 5/1-5/31/98 $ 1,951 Current
</TABLE>
Page 14 of 15
<PAGE> 15
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
=========================================================================================================
CARRIER NAME & ADDRESS TYPE CO LIMITS
ENTITY
=========================================================================================================
<S> <C> <C> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT
2211 Congress Street
Portland, ME 04122
</TABLE>
<TABLE>
<CAPTION>
====================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
====================================================================================
<S> <C> <C> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance 5/1-5/31/98 $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: 5/31/98
COMES NOW, M4 ENVIRONMENTAL MANAGEMENT, INC. , Debtor in Possession, and hereby
its Monthly Operating Report for the period commencing 5/1/98 and ending 5/31/98
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: 6/26/98 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
Exhibit 99.6
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
<PAGE> 3
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
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 expenses among the affiliated
entities.
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED:5/31/98
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <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
Inventory, at cost
Prepaid expenses
Deposits
Other:
Stock & interests in:
M4 Environmental, LP (1% ownership,
99% owned by MMT Federal Holdings, Inc.) Unknown Unknown Unknown Unknown Unknown Unknown Unknown
--------------------------------------------------------------------------------
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> 5
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED:5/31/98
<TABLE>
<CAPTION>
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
<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 PostPetition 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
Paid in Capital Nil Nil Nil Nil Nil Nil Nil
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> 6
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED:5/31/98
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
<S> <C> <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
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
============================================================
</TABLE>
<PAGE> 7
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
Case Name: M4 ENVIRONMENTAL MANAGEMENT, INC.
Case Number: 97-21388-CJK
MONTH ENDED: 5/31/98
<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
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> 8
INCOME STATEMENT FORM OPR-5
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED 5/31/98
<TABLE>
<CAPTION>
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
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <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 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 0 0
===============================================================================
</TABLE>
<PAGE> 9
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
TOTAL TOTAL TOTAL TOTAL
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION 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
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) 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
------------------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures 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
------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0 0 0 0
Increase (Decrease)-Shareholder Valuations 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
------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 0 0 0 0 0 0 0
Cash and Cash Equivalents at Beginning of Period 0 0 0 0 0 0 0
------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 0 0 0 0 0 0 0
==============================================================================
</TABLE>
<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: 5/31/98
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 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
<TABLE>
<S> <C> <C> <C> <C>
-----------------------------------------
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.
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
<PAGE> 11
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
TOTAL
<S> <C>
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
==========
</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>
f
<PAGE> 12
INSURANCE EXPIRATION STATEMENT
<TABLE>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
</TABLE>
SEE ATTACHED
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: 5/26/98
MOLTEN METAL TECHNOLOGY, INC.
/S/ F. Gordon Bitter
By:__________________________
F. Gordon Bitter
Chief Executive Officer
MMT OF TENNESSEE, INC.
/S/ F. Gordon Bitter
By:__________________________
F. Gordon Bitter
Vice President
M4 ENVIRONMENTAL, L.P.
By:__________________________
M4 Environmental Management, Inc.
General Partner
/S/ F. Gordon Bitter
By:__________________________
F. Gordon Bitter
Vice President
MMT FEDERAL HOLDINGS, INC.
/S/ F. Gordon Bitter
By:__________________________
F. Gordon Bitter
Vice President
<PAGE> 13
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
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000 NW-0235
West Hartford, CT 06107 Shared Agg.
</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
29 South Main Street 12/31/98 $550 Not yet invoiced
West Hartford, CT 06107
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
=================================================================================================================================
CARRIER NAME & ADDRESS TYPE BROKER LIMITS POLICY
NUMBER
=================================================================================================================================
<S> <C> <C> <C> <C>
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>
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
<TABLE>
<CAPTION>
=====================================================================================
CARRIER NAME & ADDRESS EXPIRATION PREMIUM PAID
DATE THRU
=====================================================================================
<S> <C> <C> <C>
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> 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> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 5/1-5/31/98 $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 5/1-5/31/98 None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 5/1-5/31/98 $1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 5/1-5/31/98 $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 5/1-5/31/98 $10,960 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 5/1-5/31/98 $8,231 Current
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 5/1-5/31/98 $50,000 Current
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
UNUM Life Insurance Employee Funded Long Term Disability MMT 5/1-5/31/98 $1,951 Current
</TABLE>
<PAGE> 16
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> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 5/1-5/31/98 $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
<PAGE> 1
Exhibit 99.6
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: M4 ENVIRONMENTAL MANAGEMENT, INC. NO.: 97-21388-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
MONTHLY OPERATING REPORT FOR MONTH ENDING: 5/31/98
COMES NOW, M4 ENVIRONMENTAL MANAGEMENT, INC. , Debtor in Possession, and hereby
its Monthly Operating Report for the period commencing 5/1/98 and ending 5/31/98
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: 6/26/98 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. 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 expenses among the affiliated
entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 5/31/98
<TABLE>
<CAPTION>
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 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 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 1,497,718
Long Term Notes Receivable from
Lockheed Martin 19,000,000 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 22,792,331
PROPERTY, PLANT AND EQUIPMENT, AT COST 10,653,977 10,653,977 10,653,977 10,653,977 10,653,977
Less: Accumulated Depreciation (580,281) (710,532) (828,954) (947,376) (1,065,798)
NET PROPERTY, PLANT AND EQUIPMENT 10,073,696 9,943,445 9,825,023 9,706,601 9,588,179
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 2,414,005 2,414,005 2,414,005 2,414,005 2,414,005
Less: Accumulated Amortization (102,512) (120,443) (138,373) (156,304) (174,235)
TOTAL OTHER ASSETS 2,311,493 2,293,562 2,275,632 2,257,701 2,239,770
TOTAL ASSETS 35,230,785 35,029,338 34,892,986 34,756,633 34,620,280
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
4/30/98 5/31/98
<S> <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
Inventory, at cost
Prepaid expenses
Deposits
Other:
Investment in CW LLC 1,497,718 1,497,718
Long Term Notes Receivable from
Lockheed Martin 19,000,000 19,000,000
TOTAL CURRENT ASSETS 22,792,331 22,792,331 0
PROPERTY, PLANT AND EQUIPMENT, AT COST 10,653,977 10,653,977
Less: Accumulated Depreciation (1,184,220) (1,302,642)
NET PROPERTY, PLANT AND EQUIPMENT 9,469,757 9,351,335 0
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 2,414,005 2,414,005
Less: Accumulated Amortization (192,166) (210,097)
TOTAL OTHER ASSETS 2,221,839 2,203,908 0
TOTAL ASSETS 34,483,927 34,347,574 0
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 5/31/98
-------
<TABLE>
<CAPTION>
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 (25,762) 63,760 63,760 64,065
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 34,057 8,294 8,294 8,294
------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 8,295 72,054 72,054 72,359
PRE PETITION INTERCOMPANY LIABILITIES 35,906,310 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 40,844,824
------------------------------------------------------------------
TOTAL LIABILITIES 76,875,862 76,822,082 76,822,082 76,822,082 76,823,493
PARTNERSHIP EQUITY (DEFICIT)
Retained Earnings
Through Filing Date (41,645,077) (41,645,077) (41,645,077) (41,645,077) (41,645,077)
Post Filing Date (147,667) (284,019) (420,372) (558,136)
------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (41,645,077) (41,792,744) (41,929,096) (42,065,449) (42,203,213)
------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 35,230,785 35,029,338 34,892,986 34,756,633 34,620,280
==================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
4/30/98 5/31/98
--------------------------------------
<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 64,065 64,065
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 8,294 8,294
--------------------------------------
TOTAL POST PETITION LIABILITIES 72,359 72,359 0
PRE PETITION INTERCOMPANY LIABILITIES 35,906,310 35,906,310
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES 40,844,824 40,844,824
--------------------------------------
TOTAL LIABILITIES 76,823,493 76,823,493 0
PARTNERSHIP EQUITY (DEFICIT)
Retained Earnings
Through Filing Date (41,645,077) (41,645,077)
Post Filing Date (694,489) (830,842)
--------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (42,339,566) (42,475,919) 0
--------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 34,483,927 34,347,574 0
======================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 5/31/98
-------
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
------------------------------------------------------------------------
<S> <C> <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
===================================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 5/31/98
-------
<TABLE>
<CAPTION>
DATE DATE TOTAL 0-30
INCURRED DUE DUE DAYS
----------------------------------------------
<S> <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
- -------------------
-----------------------
POST PETITION SECURED DEBT
- --------------------------
ACCRUED INTEREST PAYABLE
-----------------------
TOTAL POST PETITION SECURED DEBT 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
-----------------------
TOTAL ALL POST PETITION LIABILITIES 8,294 0
=======================
</TABLE>
<TABLE>
<CAPTION>
31-60 61-90 OVER
DAYS DAYS 90 DAYS
---------------------------------
<S> <C> <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 0
- -------------------
--------------------------------
POST PETITION SECURED DEBT
- --------------------------
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) 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.
Accrued expenses-Deferred Decontamination
& Decommissioning Expenses
--------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 0 0 0
--------------------------------
TOTAL ALL POST PETITION LIABILITIES 0 0 0
================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED 5/31/98
<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)
-----------------------------------------------------------------
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
-----------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0 (1,411)
-----------------------------------------------------------------
INTEREST EXPENSE (515)
DEPRECIATION AND AMORTIZATION 148,182 136,352 136,353 136,353
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)
=================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
4/30/98 5/31/98
-------------------------------------
<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 136,353 136,353
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-------------------------------------
NET INCOME (LOSS) (136,353) (136,353) 0 0
=====================================
</TABLE>
<PAGE> 8
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED 5/31/98
<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
-----------------------------------------------------------------------
CASH FLOWS-OPERATING ACTIVITIES:
<S> <C> <C> <C> <C> <C>
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
========================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
3/31/98 4/30/98 5/31/98
----------------------------------------
<S> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (137,764) (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
Decrease (Increase)-Accounts Receivable 0 0 0
Decrease (Increase)-Inventories 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0
Decrease (Increase)-Other Assets 0 0 0
Increase (Decrease)-Pre Petition Liabilities 1,106 0 0
Increase (Decrease)-Post Petition Liabilities 305 0 0
---------------------------------------
Net Cash Provided (Used) by Operating Activities 0 0 0
---------------------------------------
Cash Flows Used in Investing Activities
Capital Expenditures 0 0 0
Sale of Net Fixed Assets
---------------------------------------
Net Cash Provided (Used) in Investing Activities 0 0 0
---------------------------------------
Cash Flows From Financing Activities:
Increase (Decrease)-Morgens Waterfall 0 0 0
Increase (Decrease)-Shareholder Valuations
Purchase of Treasury Stock-Preferred Shares
---------------------------------------
Net Cash Provided (Used) in Financing Activities 0 0 0
---------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 0 0
Cash and Cash Equivalents at Beginning of Period 0 0 0
---------------------------------------
Cash and Cash Equivalents at End of Period 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 5/31/98
----------------------------
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>
NONE
-------------------------------------
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: 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 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
<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: 5/26/98
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
====================================================================================================================================
<S> <C> <C> <C>
Commerce & Industry Insurance Co. General Liability Aon $1,000,000
70 Pine Street Automobile Liability Aon $1,000,000
New York, NY 10270 Excess Liability - 1st layer Aon $20,000,000
excess of $1M
New Hampshire Insurance Co. Workers Compensation Aon Statutory
70 Pine Street Workers Compensation - CA Aon Statutory
New York NY 10270 Employers' Liability Aon $1,000,000
American International Specialty Lines Pollution Liability - MA/TN Aon $3,000,000
Insurance Co. Pollution Liability - TX Aon $1,000,000
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company Fidelity Aon $500,000
P.O. Box 91394 Fiduciary Aon $2,000,000
Chicago, IL 60693
Executive Risk Indemnity Company Directors & Officers Liability Aon $10,000,000
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies Foreign Liability Aon $1,000,000
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. Property Aon 147,000,000
Allendale Park Blanket
Johnston, RI 02919
American Nuclear Insurers Nuclear All Risk Property J&H/M&M $45,000,000
Town Center Nuclear Liability Facility Form - TN J&H/M&M $50,000,000
29 South Main Street Master Worker Certificate - TN J&H/M&M $200,000,000
West Hartford, CT 06107 Shared Agg.
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================---============
Carrier Name & Address Policy Expiration Premium Paid
Number Date Thru
===========================================================================================================================
<S> <C> <C> <C> <C>
Commerce & Industry Insurance Co. 340-94-76 12/3/98 $53,000 Current
70 Pine Street 766-56-11 12/3/98 $3,540 Current
New York, NY 10270 606-23-31 12/3/98 $43,185 Current
New Hampshire Insurance Co. WC588-59-75 12/3/98 $111,250 Current
70 Pine Street WC588-59-77 12/3/98 $753 Current
New York NY 10270 WC588-59-75 12/3/98 inclu. Current
and -77[CA]
American International Specialty Lines 8199951 12/3/98 $28,342 Current
Insurance Co. 8199950 12/3/98 $16,919 Current
70 Pine Street
New York NY 10270
Executive Risk Indemnity Company 751-118812-98 5/9/99 $6,000 Current
P.O. Box 91394 751-118834-98 5/9/99 $6,000 Current
Chicago, IL 60693
Executive Risk Indemnity Company 751-091628-98 1/19/99 $350,000 Current
P.O. Box 91394
Chicago, IL 60693
CNA Insurance Companies PST 00 9648288 2/1/99 $2,000 Current
180 Maiden Lane
New York, NY 10038
Allendale Mutual Insurance Co. CC626 12/2/99 $170,000 Current
Allendale Park
Johnston, RI 02919
American Nuclear Insurers 98262 1/1/99 $97,500 Current
Town Center NF-0338 12/31/98 $124,215 Current
29 South Main Street NW-0235 12/31/98 $550 Not yet invoiced
West Hartford, CT 06107
</TABLE>
Page 12
<PAGE> 13
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
<TABLE>
<CAPTION>
==================================================================================================================================
Carrier Name & Address Type Broker Limits
==================================================================================================================================
<S> <C> <C> <C>
Nuclear Supplier's & Transp. J&H/M&M $15,000,000
Nuclear Liability Facility Form - SC J&H/M&M $10,000,000
Nuclear Foreign Supplier's & Transp. J&H/M&M $10,000,000
Master Worker Certificate - SC J&H/M&M $200,000,000
Shared Agg.
Nuclear Facility Liability - Comm. Park J&H/M&M $10,000,000
Master Worker Certificate - Comm. Park J&H/M&M $200,000,000
Shared Agg.
American International Specialty Pollution Legal and Closure/Post Closure J&H/M&M $3,000,000
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 Policy Expiration Premium Paid
Number Date Thru
====================================================================================================-----------=================
<S> <C> <C> <C> <C>
NS-0539 12/31/98 $8,670 Current
NF-0329 12/31/98 $13,590 Current
TBD 12/31/98 TBD Based on Foreign Sales
NW-0237 12/31/98 $550 Not yet invoiced
NF-0337 12/31/98 $39,568 Current
NW-0234 12/31/98 $550 Not yet invoiced
American International Specialty 8183013 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
Entity Date
===================================================================================================================================
<S> <C> <C> <C> <C>
Blue Cross & Blue Shield of RI Full Coverage Medical MMT 5/1-5/31/98
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan Self Funded Dental MMT 5/1-5/31/98
PO Box 5-0198
Woburn, MA 01815-0198
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT 5/1-5/31/98
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. Employee Funded-Supplemental Life MMT TN 5/1-5/31/98
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT 5/1-5/31/98
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Medical Stop Loss and Life Insurance MMT TN 5/1-5/31/98
10159 Wayzata Boulevard Premiums
Minnetonka, MN 55305
Fortis Self Funded Admin Services Self Funded Medical Claims MMT & 5/1-5/31/98
10159 Wayzata Boulevard MMT TN
Minnetonka, MN 55305
UNUM Life Insurance Employee Funded Long Term Disability MMT 5/1-5/31/98
</TABLE>
<TABLE>
<CAPTION>
============================================================================================
Carrier Name & Address Premium Paid
Thru
============================================================================================
<S> <C> <C>
Blue Cross & Blue Shield of RI $10,622 Current
PO Box 1057
Providence, RI
02901-1057
Delta Dental Plan None Current
PO Box 5-0198 Current
Woburn, MA 01815-0198 Current
Fortis Benefits Insurance Co. $1,968 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Benefits Insurance Co. $1,185 Current
PO Box 27-644-1
Kansas City, MO 64180-0644
Fortis Self Funded Admin Services $10,960 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services $8,231 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
Fortis Self Funded Admin Services $50,000 Current
10159 Wayzata Boulevard
Minnetonka, MN 55305
UNUM Life Insurance $1,951 Current
</TABLE>
Page 14 of 15
<PAGE> 15
<TABLE>
<CAPTION>
MOLTEN METAL TECHNOLOGY INSURANCE SCHEDULE
EXHIBIT A
===================================================================================================================================
Carrier Name & Address Type CO Limits Expiration
Entity Date
===================================================================================================================================
<S> <C> <C> <C>
PO Box 7777-W0050
Philadelphia, PA
19175-0050
UNUM Life Insurance Short Term Disability MMT 5/1-5/31/98
2211 Congress Street
Portland, ME 04122
</TABLE>
<TABLE>
<CAPTION>
============================================================================================
Carrier Name & Addr Premium Paid
Thru
============================================================================================
<S> <C> <C>
UNUM Life Insurance $2,110 Current
2211 Congress Street
Portland, ME 04122
</TABLE>
Page 15 of 15
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