<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): March 16, 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 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
(a) CESSATION OF CLIENT-AUDITOR RELATIONSHIP WITH REGISTRANT'S INDEPENDENT
ACCOUNTANTS
With the filing of its voluntary Chapter 11 petition (see Item 5. below),
the ability of Molten Metal Technology, Inc. (the "Company") to employ
attorneys, accountants and other professionals became subject to Bankruptcy
Court approval. Under Section 327 of the Bankruptcy Code, the Company is
required to seek court approval to retain professionals, including independent
accountants, subject to a showing in most instances that the professional is a
"disinterested person" with respect to the Company. To qualify in most instances
as a "disinterested person" within the meaning of the Bankruptcy Code, a
professional, among other things, must either (i) not hold a prepetition claim
against the debtor or (ii) have waived such claim as a condition to employment
in the Chapter 11 case.
Price Waterhouse LLP has served as the Company's independent accountant
since 1992. At the time the Cases were filed, the Company owed Price Waterhouse
$129,000, and Price Waterhouse became a prepetition creditor of the Company.
Thus, to continue as the Company's independent accountants while the Company is
in Chapter 11, Price Waterhouse probably would have had to waive its claim as a
creditor of the Company. Following discussions between the Company and Price
Waterhouse regarding the Company's expected ongoing accounting needs while in
Chapter 11 and the Company's relocation of its corporate accounting functions to
Tennessee, Price Waterhouse declined to stand for reelection and in a letter
dated March 16, 1998 advised the Company that the client-auditor relationship
had ceased.
Price Waterhouse served as the Company's independent accountants for over 5
years. Price Waterhouse's audit reports for the Company during this time period
did not contain any adverse opinions, disclaimers or qualifications, and there
were no disagreements (within the meaning of Item 304 of Regulation S-K) between
the Company and Price Waterhouse during this entire time period and through the
date of this report.
During 1996 and 1997, issues arose relating to certain billings for
services rendered by the Company to M4 Environmental L.P. ("M4") in 1996 which
were disputed and not paid by M4. Based upon the Company's and Price
Waterhouse's investigation of these issues in conjunction with its audit of the
1996 financial statements, Price Waterhouse advised the Company of material
weaknesses surrounding the Company's procedures for monitoring contractual
relationships, billing for services and accounting related thereto, and that
Price Waterhouse was unable to rely upon management's representations in the
manner in which it previously could. As a result of its review of these issues
as well as the restructuring of the Company's and Lockheed Martin Corporation's
relationship with respect to their then-joint ownership of M4, Price Waterhouse
advised the Company that it would need to significantly expand the scope of the
audit of the 1996 financial statements. These issues were thoroughly reviewed by
the Audit Committee of the Company's Board of Directors, and there was no
disagreement between the Company and Price Waterhouse (within the meaning of
Item 304 of Regulation S-K) in resolving these issues or the necessary actions
or adjustments. As a result, Price Waterhouse did significantly expand the
<PAGE> 3
scope of its audit. The results of the expanded audit affected the Company's
financial results for the 2nd quarter of 1996 (April 1, 1996 through June 30,
1996) and 3rd quarter of 1996 (July 1, 1996 through September 30, 1996). As a
result, the Company restated its financial results for the 2nd and 3rd quarters
of 1996 to reflect these adjustments and reported these restated financial
results in two Forms 10-Q/A filed on August 8, 1997.
The Company and its subsidiaries (see Item 5. below) are now in the process
of seeking a new certifying accountant. Although there is no disagreement
between the Company and Price Waterhouse concerning the matters discussed above
or the actions taken with regard thereto, the Company has authorized Price
Waterhouse to respond fully to any inquiries of the successor accountant
concerning these matters.
Price Waterhouse has reviewed and agrees with the statements above made by
the Company in connection with the cessation of the client-auditor relationship.
A letter to that effect from Price Waterhouse is attached hereto as Exhibit 16
and is incorporated herein by reference.
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 February 28, 1998, together with a consolidated report, was filed
with the Office of the United States Trustee on March 20, 1998. Copies of these
MORs are attached hereto as Exhibits 99.1 through 99.6 and are incorporated
herein by reference.
<PAGE> 4
CLOSING OF $20 MILLION FINANCING TRANSACTION
On March 9, 1998 the Company announced it had received Bankruptcy Court
approval for a $20 million loan facility from affiliates of Morgens, Waterfall,
Vintiadis & Company, Inc. (the "Lender"). The $20 million financing will be used
to repay a short-term loan received from the Lender and to enhance the
operations of the Company's two operating plants in Oak Ridge, Tennessee. The
loan will become due on December 31, 1999 or the effective date of a
Reorganization Plan for any of the Companies, whichever is earlier. Closing of
the loan and initial advance of funds was completed on March 20, 1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
<TABLE>
<CAPTION>
Exhibit
Number Description of Document
- ------- -----------------------
<S> <C>
16 Letter re Change in Certifying Accountant
99.1 Monthly Operating Report (Consolidated) of the Company and its
subsidiaries for the month ending February 28, 1998(1)
99.2 Monthly Operating Report of the Company for the month ending
February 28, 1998(1)
99.3 Monthly Operating Report of the Company's subsidiary MMT of
Tennessee Inc. for the month ending February 28, 1998(1)
99.4 Monthly Operating Report of the Company's subsidiary MMT Federal
Holdings, Inc. for the month ending February 28, 1998(1)
99.5 Monthly Operating Report of the Company's subsidiary M4
Environmental Management Inc. for the month ending
February 28, 1998(1)
99.6 Monthly Operating Report of the Company's subsidiary M4
Environmental, L.P. for the month ending February 28, 1998(1)
</TABLE>
(1) The Company agrees to furnish supplementally a copy of any omitted schedule
or similar attachment to the Commission upon its request.
<PAGE> 5
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: March 23, 1998 By: /s/ F. Gordon Bitter
-------------------------------
F. Gordon Bitter
Chief Executive Officer and
Chief Financial Officer
<PAGE> 1
160 Federal Street Telephone 617 439-4390
Boston, MA 02110 EXHIBIT 16
PRICE WATERHOUSE LLP [LOGO]
March 23, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Ladies and Gentlemen:
Molten Metal Technology, Inc.
-----------------------------
We have read Item 4 of Molten Metal Technology, Inc.'s Form 8-K dated March 23,
1998 and are in agreement with the statements contained in paragraph 4(a)
therein.
Yours very truly,
/s/ Price Waterhouse LLP
<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: 2/28/98
COMES NOW, MOLTEN METAL TECHNOLOGY, INC. (CONSOLIDATED) , Debtor in Possession,
and hereby its Monthly Operating Report for the period commencing 2/1/98 and
ending 2/28/98 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: 3/18/98 DEBTOR-IN-POSSESSION
-------
By: /S/ F. GORDON BITTER
-------------------------------------------
Name & Title: F. Gordon Bitter, CEO & CFO
Molten Metal Technology, Inc.
400-2 Totten Pond Road
Waltham, MA 02109
Telephone: 781-487-7600
<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 all expenses among the affiliated entities.
<PAGE> 3
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME : MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 4,654,326 7,712,988 7,222,698 5,141,902
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
Less: allowance for doubtful accounts (150,000) (150,000) (150,000) (150,000)
Accounts Receivable-Other 3,362,193 3,114,234 3,630,556 3,936,087
Inventory, at cost 4,642,718 2,999,979 2,981,683 2,953,384
Prepaid expenses 2,944,501 3,432,683 3,590,453 3,912,070
Deposits 199,046 176,955 258,371 264,731
Other:
Investment in Nichimen Joint Venture 433,739 433,739 433,739 433,739
Investment in CW, LLC 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
Restricted Cash Collateral Deposits 3,921,953 3,930,999 3,940,000 3,948,082
------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 49,902,740 51,724,290 50,213,990 48,865,845 0 0 0 0
------------------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 158,480,555 158,577,054 158,881,900 159,301,814
Less: Accumulated Depreciation (23,789,824) (24,685,394) (25,710,487) (26,735,581)
------------------------------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 134,690,731 133,891,660 133,171,413 132,566,233 0 0 0 0
------------------------------------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 26,143,973 26,143,421 26,168,331 26,189,604 0
Less: Accumulated Amortization (4,212,236) (4,412,755) (4,604,973) (4,797,190)
------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 21,931,737 21,730,666 21,563,358 21,392,414 0 0 0 0
------------------------------------------------------------------------------------------
TOTAL ASSETS 206,525,208 207,346,616 204,948,761 202,824,492 0 0 0 0
==========================================================================================
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME : MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 5,260,000 7,000,000 7,000,000
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 0 0 0 0
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 0 0 0 0
------------------------------------------------------------------------------------------
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) 0 0 0 0
------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 206,525,208 207,346,616 204,948,761 202,824,492 0 0 0 0
==========================================================================================
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME : MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
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 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: 0
Allowance for doubtful accounts 0
--------------------------------------------------------------------------
0 0 0 0 0
==========================================================================
MONTH: 0
Allowance for doubtful accounts 0
--------------------------------------------------------------------------
0 0 0 0 0
==========================================================================
MONTH:
Allowance for doubtful accounts
--------------------------------------------------------------------------
0 0 0 0 0
==========================================================================
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME : MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
----------------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
----------------------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens
Waterfall Financing Various-January 3/4/98 7,000,000
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens
Waterfall Financing
----------------------------------------------------
TOTAL POST PETITION SECURED DEBT 7,000,000 0 0 0 0
----------------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached
schedules) 1,131,977
Payroll withholdings
Accrued Payroll
Accrued expenses-Estimated liability
incurred, but not invoiced as of the
end of the period and deferred obligations. 3,811,877
----------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 4,943,854 0 0 0 0
----------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 11,943,854 0 0 0 0
====================================================
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
INCOME STATEMENT FORM OPR-5
CASE NAME : MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <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 0 0 0 0 0
------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (224,548) (4,033,557) (2,051,638) (1,413,072) 0 0 0 0 0
------------------------------------------------------------------------------------------
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) 0 0 0 0 0
==========================================================================================
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME : MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
TOTAL
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED
2/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (5,083,724) (5,083,724) (3,799,805) (3,149,644)
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 (809,932) 2,677,217
----------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 0 (2,113,440) (2,113,440) (1,895,762) (1,645,613) 0 0 0
----------------------------------------------------------------------------------------------
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) 0 0 0
----------------------------------------------------------------------------------------------
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 0 0 0
----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 0 3,058,662 3,058,662 (490,290) (2,080,796) 0 0 0
Cash and Cash Equivalents at
Beginning of Period 4,654,326 4,654,326 7,712,988 7,222,698 5,141,902 5,141,902 5,141,902
----------------------------------------------------------------------------------------------
Cash and Cash Equivalents at
End of Period 0 7,712,988 7,712,988 7,222,698 5,141,902 5,141,902 5,141,902 5,141,902
==============================================================================================
</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: 2/28/98
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
------------------- -----------------------------------------------------
<S> <C> <C> <C> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 2/6 & 2/20/98 17,308 9,996 5,439 5,439
Eugene Berman, VP, Regul, Legal, & Extern Aff 2/6 & 2/20/98 13,354 7,483 4,968 4,968
F. Gordon Bitter, CEO & CFO, Director 2/6 & 2/20/98 17,308 10,168 7,035 7,035
Steven Brien, VP, Chemical Sales & Marketing 2/6 & 2/20/98 12,308 7,109 4,325 4,325
Victor E. Gatto, Jr., VP, Government Markets 2/6 & 2/20/98 13,862 12,348 1,352 1,352
David Hoey, V,P Business Development 2/6 & 2/20/98 12,308 8,055 4,143 4,143
F. James Howie, III, VP, Procurement 2/6 & 2/20/98 10,240 6,383 3,301 3,301
Ethan E. Jacks, VP, General Counsel, Secretary 2/6 & 2/20/98 12,694 6,545 4,397 4,397
James E. Johnston, VP, Technical Development 2/6 & 2/20/98 10,822 5,904 3,882 3,882
Christopher Nagel, Chief Technology Officer 2/6 & 2/20/98 41,680 23,370 16,726 16,726
Kathy Santoro, VP, Human Resources 2/6 & 2/20/98 7,546 4,598 2,344 2,344
Charles W. Shaver, President & COO, Director 2/6 & 2/20/98 19,615 11,405 7,284 7,284
-------------------------------------
TOTAL EXECUTIVE PAYROLL 189,045 113,364 65,196 65,196
=====================================
</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 : MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
CASE NUMBER: 97-21385-CJK
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
MMT MMT TENNESSEE TENNESSEE ALEX OPPEN- M4 LP ESCROW AT
OPERATING PAYROLL OPERATING PAYROLL BROWN HEIMER OPERATING ROPES
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ALEX OPPEN- ROPES &
BANK NAME U.S. TRUST U.S. TRUST U.S. TRUST U.S. TRUST BROWN HEIMER SUNTRUST GRAY
ACCOUNT NUMBER 1100937836 1100937844 110937851 1100937869 210-71007 033-82238 0005618983
BEGINNING BOOK BALANCE 2,152,816 13,451 2,263,277 13,979 6,543 2,611,222 (8,294) 169,204
PLUS: Deposits- Collections of A/R 68,994 1,593,588
Other Receipts 514,909 64,784
Loan Advances
LESS: Disbursements (3,244,299)
Payroll (21,802) (719,055) (402,038)
Returned Checks
Loan Repayments
OTHER:Adjustments 64,177 (54)
Transfers In (Out) 1,654,119 737,000 (2,813,119) 422,000
---------------------------------------------------------------------------------------------
ENDING BOOK BALANCE 1,188,914 31,396 1,043,692 33,941 6,543 2,676,006 (8,294) 169,204
=============================================================================================
MMT FED
HOLDINGS TOTAL
-------------------------
<S> <C> <C>
BANK NAME U.S. TRUST
ACCOUNT NUMBER 002239244-1
BEGINNING BOOK BALANCE 500 7,222,698
PLUS: Deposits- Collections of A/R 1,662,582
Other Receipts 579,693
Loan Advances 0
0
LESS: Disbursements (3,244,299)
Payroll (1,142,895)
Returned Checks 0
Loan Repayments 0
0
OTHER:Adjustments 64,123
Transfers In (Out) 0
0
-------------------------
ENDING BOOK BALANCE 500 5,141,902
=========================
</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 258,415 2/26/96 WIRE
---------
258,415
=========
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: 3/18/98
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> 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: 2/28/98
COMES NOW, MOLTEN METAL TECHNOLOGY, INC., Debtor in Possession, and hereby its
Monthly Operating Report for the period commencing 2/1/98 and ending 2/28/98 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: 3/18/98 DEBTOR-IN-POSSESSION
-------
By: /S/ F. GORDON BITTER
-------------------------------------------
Name & Title: F. Gordon Bitter, CEO & CFO
Molten Metal Technology, Inc.
400-2 Totten Pond Road
Waltham, MA 02109
Telephone: 781-487-7600
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: MOLTEN METAL TECHNOLOGY, INC. CASE NO.: 97-21385-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices,
this operating report accounts for all cash transfers among the
Debtor and its affiliates and allocates some, but not all, of the
expenses borne by one affiliate for the benefit of another or the
others. In the absence of a decision for substantive
consolidation, the Debtor will develop an appropriate allocation
of all expenses among the affiliated entities.
<PAGE> 3
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 4,893,869 6,713,407 4,953,236 4,072,063
Other negotiable instruments (i.e.
CD's, Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 1,094,993 891,484 451,441 392,839
Less: allowance for doubtful accounts
Accounts Receivable-Other 336,181 662,994 673,987 633,723
Accounts Receivable-Intercompany
Inventory, at cost 3,032,515 1,832,965 1,832,965 1,832,965
Prepaid expenses 2,994,736 3,276,848 3,447,882 3,783,158
Deposits 141,546 119,455 181,446 185,611
Other:
Investment in Nichimen Joint Venture 433,739 433,739 433,739 433,739
Investment in MMT of Tennessee 10 10 10 10
Investment in MMT Federal Holdings 1,000 1,000 1,000 1,000
Long Term Notes Receivable 1,806,950 1,806,950 1,806,950 1,806,950
Restricted Cash Collateral Deposits 3,706,433 3,715,479 3,724,480 3,732,562
------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 18,441,972 19,454,331 17,507,136 16,874,620 0 0 0 0
------------------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 86,181,337 86,206,483 86,347,343 86,409,258
Less: Accumulated Depreciation (21,105,234) (21,693,189) (22,282,884) (22,872,579)
------------------------------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 65,076,103 64,513,294 64,064,459 63,536,679 0 0 0 0
------------------------------------------------------------------------------------------
OTHER ASSETS (Itemized if value exceeds
10% of "Total Assets")
Intangible Assets 11,221,338 11,220,787 11,245,697 11,266,969 0
Less: Accumulated Amortization (1,765,428) (1,783,197) (1,801,012) (1,818,825)
------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 9,455,910 9,437,590 9,444,685 9,448,144 0 0 0 0
------------------------------------------------------------------------------------------
TOTAL ASSETS 92,973,985 93,405,215 91,016,280 89,859,443 0 0 0 0
==========================================================================================
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 5,260,000 7,000,000 7,000,000
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 6,759,257 7,262,938 0 0 0 0
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 198,513,032 198,221,086 199,232,030 199,566,949
-------------------------------------------------------------------------------------------
TOTAL LIABILITIES 83,049,519 88,101,428 88,541,305 89,359,072 0 0 0 0
-------------------------------------------------------------------------------------------
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 0 0 0 0
-------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 92,973,985 93,405,215 91,016,280 89,859,443 0 0 0 0
============================================================================================
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
-------------------------------------------------------------
<S> <C> <C> <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: 0
Allowance for doubtful accounts 0
-------------------------------------------------------------
0 0 0 0 0
==============================================================
MONTH: 0
Allowance for doubtful accounts 0
-------------------------------------------------------------
0 0 0 0 0
==============================================================
MONTH:
Allowance for doubtful accounts
-------------------------------------------------------------
0 0 0 0 0
==============================================================
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
---------------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
---------------------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens
Waterfall Financing Various-January 3/4/98 7,000,000
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens
Waterfall Financing
---------------------------------------------------
TOTAL POST PETITION SECURED DEBT 7,000,000 0 0 0 0
---------------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached
schedules) 1,131,977
Payroll withholdings
Accrued Payroll
Accrued expenses-Estimated liability
incurred, but not invoiced as of the
end of the period and deferred obligations. 960,223
---------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 2,092,200 0 0 0 0
---------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 9,092,200 0 0 0 0
===================================================
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
INCOME STATEMENT FORM OPR-5
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <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 0 0 0 0 0
-----------------------------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 (4,030,611) (1,685,674) (863,244) 0 0 0 0 0
-----------------------------------------------------------------------------------------
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) 0 0 0 0 0
=========================================================================================
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
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
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (4,636,335) (4,636,335) (2,824,040) (1,989,714)
Adjustments to Reconcile Net
Earnings to Net Cash
Provided (Used) by
Operating Activities:
Depreciation & Amortization 605,724 605,724 607,510 607,508
Decrease (Increase)-
Accounts Receivable (123,304) (123,304) 429,050 98,866
Decrease (Increase)-
Inventories 1,199,550 1,199,550 0 0
Decrease (Increase)-
Prepaid Expenses (282,112) (282,112) (171,034) (335,276)
Decrease (Increase)-
Other Assets 13,596 13,596 (95,902) (33,519)
Increase (Decrease)-Pre
Petition Liabilities (291,946) (291,946) 1,010,944 334,919
Increase (Decrease)-Post
Petition Liabilities 1,892,945 1,892,945 (2,133,688) 503,681
Increase (Decrease)-Deferred
Revenue (1,809,090) (1,809,090) (177,379) (20,833)
----------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 0 (3,430,972) (3,430,972) (3,354,539) (834,368) 0 0 0
----------------------------------------------------------------------------------------------
CASH FLOWS USED IN INVESTING
ACTIVITIES
Capital Expenditures (25,146) (25,146) (140,860) (61,915)
Sale of Net Fixed Assets
----------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN
INVESTING ACTIVITIES 0 (25,146) (25,146) (140,860) (61,915) 0 0 0
----------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase (Decrease)-
Morgens Waterfall 5,260,000 5,260,000 1,740,000 0
Increase (Decrease)-
Shareholder Valuations 15,656 15,656 (4,772) 15,110
Purchase of Treasury Stock-
Preferred Shares
----------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN
FINANCING ACTIVITIES 0 5,275,656 5,275,656 1,735,228 15,110 0 0 0
----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 0 1,819,538 1,819,538 (1,760,171) (881,173) 0 0 0
Cash and Cash Equivalents at
Beginning of Period 4,893,869 4,893,869 6,713,407 4,953,236 4,072,063 4,072,063 4,072,063
----------------------------------------------------------------------------------------------
Cash and Cash Equivalents at
End of Period 0 6,713,407 6,713,407 4,953,236 4,072,063 4,072,063 4,072,063 4,072,063
==============================================================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 2/28/98
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
------------------- ----------------------------------------------------
<S> <C> <C> <C> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 2/6 & 2/20/98 17,308 9,996 5,439 5,439
Eugene Berman, VP, Regul, Legal, & Extern Aff 2/6 & 2/20/98 13,354 7,483 4,968 4,968
F. Gordon Bitter, CEO & CFO, Director 2/6 & 2/20/98 17,308 10,168 7,035 7,035
Steven Brien, VP, Chemical Sales & Marketing 2/6 & 2/20/98 12,308 7,109 4,325 4,325
Victor E. Gatto, Jr., VP, Government Markets 2/6 & 2/20/98 13,862 12,348 1,352 1,352
David Hoey, VP Business Development 2/6 & 2/20/98 12,308 8,055 4,143 4,143
F. James Howie, III, VP, Procurement 2/6 & 2/20/98 10,240 6,383 3,301 3,301
Ethan E. Jacks, VP, General Counsel, Secretary 2/6 & 2/20/98 12,694 6,545 4,397 4,397
James E. Johnston, VP, Technical Development 2/6 & 2/20/98 10,822 5,904 3,882 3,882
Christopher Nagel, Chief Technology Officer 2/6 & 2/20/98 41,680 23,370 16,726 16,726
Kathy Santoro, VP, Human Resources 2/6 & 2/20/98 7,546 4,598 2,344 2,344
Charles W. Shaver, President & COO, Director 2/6 & 2/20/98 19,615 11,405 7,284 7,284
------------------------------------
TOTAL EXECUTIVE PAYROLL 189,045 113,364 65,196 65,196
====================================
</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: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
MMT MMT ESCROW AT ALEX OPPEN-
OPERATING PAYROLL ROPES BROWN HEIMER TOTAL
------------------------- -----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ROPES & ALEX OPPEN-
BANK NAME U.S. TRUST U.S. TRUST GRAY BROWN HEIMER
ACCOUNT NUMBER 1100937836 1100937844 210-71007 033-82238
BEGINNING BOOK BALANCE 2,152,816 13,451 169,204 6,543 2,611,222 4,953,236
PLUS: Deposits-Collections of A/R 68,994 68,994
Other Receipts 514,909 64,784 579,693
Loan Advances 0
0
LESS: Disbursements (3,244,299) (3,244,299)
Payroll (21,802) (719,055) (740,857)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments 64,177 64,177
Transfers In (Out) 1,654,119 737,000 2,391,119
0
------------------------- -----------------------------------------------------
ENDING BOOK BALANCE 1,188,914 31,396 169,204 6,543 2,676,006 4,072,063
========================= =====================================================
4,072,063
</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 258,415 2/26/96 WIRE
---------
258,415
=========
PRE-PETITION DEBTS
---------
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
=========
</TABLE>
<PAGE> 11
INSURANCE EXPIRATION STATEMENT Exhibit D
<TABLE>
<CAPTION>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <S> <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: 3/18/98
MOLTEN METAL TECHNOLOGY, INC.
By: /S/ F. GORDON BITTER
--------------------------------------
F. Gordon Bitter
Chief Executive Officer
MMT OF TENNESSEE, INC.
By: /S/ F. GORDON BITTER
--------------------------------------
F. Gordon Bitter
Vice President
M4 ENVIRONMENTAL, L.P..
By: /S/ F. GORDON BITTER
--------------------------------------
M4 ENVIRONMENTAL MANAGMENT, INC.
General Partner
By: /S/ F. GORDON BITTER
--------------------------------------
F. Gordon Bitter
Vice President
MMT FEDERAL HOLDINGS, INC.
By: /S/ F. GORDON BITTER
--------------------------------------
F. Gordon Bitter
Vice President
<PAGE> 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: 2/28/98
-------
COMES NOW, MMT OF TENNESSEE, INC., Debtor in Possession, and hereby its Monthly
Operating Report for the period commencing 2/1/98 and ending 2/28/98
------ -------
as shown by the report and exhibits consisting 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: 3/18/98 DEBTOR-IN-POSSESSION
------- By: /S/ F. GORDON BITTER
-----------------------------------------------
Name & Title F. Gordon Bitter, Vice President
MMT of Tennessee, Inc.
400-2 Totten Pond Road
Waltham, MA 02109
Telephone: 781-487-7600
<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 all 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: 2/28/98
-------
<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
--------------------------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
<S> <C> <C> <C> <C> <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 0 0 0 0
--------------------------------------------------------------------------------------------------
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 0 0 0 0
--------------------------------------------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF
VALUE EXCEEDS 10% OF
"TOTAL ASSETS")
Intangible Assets 12,508,628 12,508,628 12,508,630 12,508,629 0
Less: Accumulated
Amortization (2,344,293) (509,114) (2,665,588) (2,822,059)
--------------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 10,164,335 9,999,514 9,843,042 9,686,570 0 0 0 0
--------------------------------------------------------------------------------------------------
TOTAL ASSETS 78,320,949 78,920,867 79,048,299 78,226,323 0 0 0 0
==================================================================================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 2/28/98
-------
<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
--------------------------------------------------------------------------------------------------
LIABILITIES
POST PETITION LIABILITIES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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 0 0 0 0
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 0 0 0 0
--------------------------------------------------------------------------------------------------
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) 0 0 0 0
--------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 78,320,949 78,920,867 79,048,299 78,226,323 0 0 0 0
==================================================================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 2/28/98
-------
<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 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: 0
Allowance for doubtful accounts 0
------------------------------------------------------------
0 0 0 0 0
============================================================
MONTH: 0
Allowance for doubtful accounts 0
------------------------------------------------------------
0 0 0 0 0
============================================================
MONTH:
Allowance for doubtful accounts
------------------------------------------------------------
0 0 0 0 0
============================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 2/28/98
-------
<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>
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, but not
invoiced as of the end of
the period. 2,851,654
----------------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 2,851,654 0 0 0 0
----------------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 2,851,654 0 0 0 0
==========================================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
<TABLE>
<CAPTION>
MONTH ENDED: 2/28/98
-------
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET REVENUE (INCOME) 2,232,158 1,797,407 2,069,601
--------------------------------------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 521,313 485,588 383,435
Less: Salaries & wages
capitalized in fixed assets (121,795) (120,000)
Benefits 72,866 91,573 106,745
Bad debt expense 18,625
Cost of goods sold
Decontamination & disposal 7,870 7,870 7,870
Disposal costs-secondary
wastes (378) 205,018 431,112
Financing costs
Insurance 9,905 20,331 20,331
Legal services
Materials 752,418 795,840 709,052
Office expense & supplies 28,331 12,759
Other 5,866 1,064
Outside services 444,939 299,525 498,275
Professional services 126,443 159,132 284,046
Rent-equipment 31,509 37,565 45,179
Rent-office/buildings 4,649 10,000 5,000
Supplies-processing 18,515 15,755
Taxes 8,000 17,119 8,000
Telephone 10,724 11,773 2,000
Transportation 107,117 73,218 165,645
Travel & entertainment 22,923 21,054 24,819
Utilities 33,512 5,474 34,099
--------------------------------------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 2,196,816 2,163,371 2,619,431 0 0 0 0 0
--------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST,
DEPRECIATION, TAXES, OR 3,093,180
EXTRAORDINARY EXPENSES 0 35,342 (365,964) (549,830) 0 0 0 0 0
--------------------------------------------------------------------------------------------------
INTEREST EXPENSE 50
DEPRECIATION AND AMORTIZATION 342,185 473,449 473,449
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) 0 0 0 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: 2/28/98
-------
<TABLE>
<CAPTION>
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
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (306,780) (306,780) (839,413) (1,023,579)
Adjustments to Reconcile
Net Earnings to
Net Cash Provided (Used) by
Operating Activities:
Depreciation & Amortization 342,185 342,185 473,449 473,449
Decrease (Increase)-Accounts
Receivable (247,442) (247,442) 823,497 (535,504)
Decrease (Increase)-Inventories 443,189 443,189 18,296 28,299
Decrease (Increase)-Prepaid
Expenses (125,481) (125,481) 10,620 16,303
Decrease (Increase)-Other Assets 0 0 (19,427) (2,194)
Increase (Decrease)-Pre Petition
Liabilities (392,084) (392,084) 0 (1,979,714)
Increase (Decrease)-Deferred
revenue 54,158 54,158 (232,150) 7,780
Increase (Decrease)-Post
Petition Liabilities 1,244,624 1,244,624 1,198,997 2,173,536
------------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 0 1,012,369 1,012,369 1,433,869 (841,624) 0 0 0
------------------------------------------------------------------------------------------------
CASH FLOWS USED IN INVESTING
ACTIVITIES
Capital Expenditures (71,352) (71,352) (163,988) (357,999)
Sale of Net Fixed Assets
NET CASH PROVIDED (USED) IN ------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES 0 (71,352) (71,352) (163,988) (357,999) 0 0 0
------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase (Decrease)-Morgens
Waterfall 0 0 0 0
Increase (Decrease)-Shareholder
Valuations 0 0 0 0
Purchase of Treasury Stock-
Preferred Shares
NET CASH PROVIDED (USED) IN ------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 0 941,017 941,017 1,269,881 (1,199,623) 0 0 0
Cash and Cash Equivalents at
Beginning of Period 66,358 66,358 1,007,375 2,277,256 1,077,633 1,077,633 1,077,633
------------------------------------------------------------------------------------------------
Cash and Cash Equivalents at
End of Period 0 1,007,375 1,007,375 2,277,256 1,077,633 1,077,633 1,077,633 1,077,633
================================================================================================
</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: 2/28/98
--------------------
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
Elliot J. Mark, Assistant Secretary
Charles W. Shaver, President & COO, Director
Willis Wang, Assistant Secretary
H. W. Arrowsmith, VP Nuclear Sales & Marketing
-------------------------------------------
TOTAL EXECUTIVE PAYROLL 0 0 0 0
===========================================
2. INSURANCE
Is Workers' Compensation and other insurance in effect? Yes
---
Are payments current? Yes
---
If any policy has lapsed, been replaced or renewed, state so in the
schedule below.
Attach a copy of the new policy's binder or coverage page.
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- --------------------------------------------------------------------------------
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
PAGE 2
3. BANK ACCOUNTS
TENNESSEE TENNESSEE
OPERATING PAYROLL TOTAL TOTAL
--------------------- ----- -----
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
<TABLE>
<CAPTION>
BANK NAME U.S. TRUST U.S. TRUST
ACCOUNT NUMBER 110937851 1100937869
<S> <C> <C> <C>
BEGINNING BOOK BALANCE 2,263,277 13,979 2,277,256
PLUS: Deposits-Collections of A/R 1,593,588 1,593,588
Other Receipts
Loan Advances
LESS: Disbursements
Payroll (402,038) (402,038)
Returned Checks
Loan Repayments 0
OTHER: Adjustments (54) (54)
Transfers In (Out) (2,813,119) 422,000 (2,391,119)
---------------------------- -----------
ENDING BOOK BALANCE 1,043,692 33,941 1,077,633
============================ ===========
</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>
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
NONE
----------
0
==========
PRE-PETITION DEBTS
NONE
TOTAL PAYMENTS OF -----------
PRE-PETITION DEBTS 0
===========
</TABLE>
<PAGE> 11
INSURANCE EXPIRATION STATEMENT Exhibit D
CARRIER NAME INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- --------------------------------------------------------------------------------
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: 3/18/98
-------
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/ 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> 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: 2/28/98
-------
COMES NOW, MMT FEDERAL HOLDINGS, INC., Debtor in Possession, and hereby its
Monthly Operating Report for the period commencing 2/1/98 and ending 2/28/98
------ -------
as shown by the report and exhibits consisting 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: 3/18/98 DEBTOR-IN-POSSESSION
------- By: /S/ F. GORDON BITTER
-------------------------------------
Name & Title: F. Gordon Bitter, Vice President
MMT Federal Holdings, Inc.
400-2 Totten Pond Road
Waltham, MA 02109
Telephone: 781-487-7600
<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 all expenses among the affiliated entities.
<PAGE> 3
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
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 t
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 2/28/98
---------
<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
-------------------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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
Demilitarizaiton LLC (50% owned, Unknown Unknown Unknown Unknown
50% owned by Lockheed Martin)
--------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 500 500 500 500 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 0
Less: Accumulated Amortization
--------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------
TOTAL ASSETS 500 500 500 500 0 0 0 0
======================================================================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 2/28/98
---------
<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
-------------------------------------------------------------------------------------------
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)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------
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 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 0 0 0 0
-----------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 500 500 500 500 0 0 0 0
=============================================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 2/28/98
-------
<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: 0
Allowance for doubtful accounts 0
------------------------------------------------------------
0 0 0 0 0
============================================================
MONTH: 0
Allowance for doubtful accounts 0
------------------------------------------------------------
0 0 0 0 0
============================================================
MONTH: 0
Allowance for doubtful accounts 0
------------------------------------------------------------
0 0 0 0 0
============================================================
MONTH:
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: 2/28/98
-------
<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>
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, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 2/28/98
-------
<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
-----------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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 0 0 0 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: 2/28/98
-------
<TABLE>
<CAPTION>
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
-------------------------------------------------------------------------------
CASH FLOWS-OPERATING ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Earnings (Loss) NONE NONE NONE NONE
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 0 0 0 0
Decrease (Increase)-Accounts Receivable 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0
Increase (Decrease)-Pre Petition Liabilities 0 0 0 0
Increase (Decrease)-Post Petition Liabilities 0 0 0 0
-------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures 0 0 0 0
Sale of Net Fixed Assets
-------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0
Increase (Decrease)-Shareholder Valuations 0 0 0 0
Purchase of Treasury Stock-Preferred Shares
-------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0 0 0 0 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 500 500 500 500 500 500 500
-------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 500 500 500 500 500 500 500
===============================================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNARIE
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED: 2/28/98
--------------------
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
Elliot J. Mark, Assistant Secretary
Charles W. Shaver, President & COO, Director
Willis Wang, Assistant Secretary
--------------------------------------
TOTAL EXECUTIVE PAYROLL 0 0 0 0
======================================
2. INSURANCE
Is Workers' Compensation and other insurance in effect? N/A
---
Are payments current?
---
If any policy has lapsed, been replaced or renewed, state so in the
schedule below. Attach a copy of the new policy's binder or coverage page.
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- --------------------------------------------------------------------------------
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
PAGE 2
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNARIE
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
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>
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
NONE
----------
0
==========
PRE-PETITION DEBTS
NONE
----------
TOTAL PAYMENTS OF
PRE-PETITION DEBTS 0
==========
</TABLE>
<PAGE> 11
INSURANCE EXPIRATION STATEMENT EXHIBIT D
<TABLE>
<CAPTION>
INSURANCE COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
CARRIER NAME AND ADDRESS TYPE AGENT AMOUNT NUMBER DATE AMOUNT PAID THRU
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SEE ATTACHED
</TABLE>
I declare under penalty of perjury that the information provided on the
attachments hereto is true and correct to the best of my knowledge and
belief.
Date: 3/18/98
-------
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 MANAGEMENT, INC.
By: /S/ F. GORDON BITTER
---------------------------------
M4 ENVIRONMENTAL MANAGEMENT, INC.
General Partner
MMT FEDERAL HOLDINGS, INC.
By: /S/ F. GORDON BITTER
---------------------------------
F. Gordon Bitter
Vice President
<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: 2/28/98
-------
COMES NOW, M4 ENVIRONMENTAL MANAGEMENT, INC., Debtor in Possession, and hereby
its Monthly Operating Report for the period commencing 2/1/98 and ending 2/28/98
------ -------
as shown by the report and exhibits consisting 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: 3/18/98 DEBTOR-IN-POSSESSION
------- By: /S/ F. GORDON BITTER
------------------------------------
Name & Title: F. Gordon Bitter, Vice President
M4 Environmental Management, Inc.
400-2 Totten Pond Road
Waltham, MA 02109
Telephone: 781-487-7600
<PAGE> 2
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 all expenses among the affiliated
entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 2/28/98
-------
<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
----------------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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 Unknown Unknown Unknown Unknown
MMT Federal Holdings, Inc.)
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
----------------------------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 0
Less: Accumulated Amortization
----------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------
TOTAL ASSETS 0 0 0 0 0 0 0 0
========================================================================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 2/28/98
-------
<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
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany
Obligations due to cash transfers
in Post Petition Operations
Unsecured Debt-Obligations incurred
in Post Petition Operations
(See Form OPR-4)
----------------------------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 0 0 0 0 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES
----------------------------------------------------------------------------------------
TOTAL LIABILITIES 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock Nil Nil Nil Nil
Paid in Capital
Valuation Allowance
Dividends Paid
Treasury Stock
Deferred Compensation
Retained Earnings
Through Filing Date
Post Filing Date
----------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 0 0 0 0 0 0 0 0
========================================================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 2/28/98
-------
<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: 0
Allowance for doubtful accounts 0
----------------------------------------------------------
0 0 0 0 0
==========================================================
MONTH: 0
Allowance for doubtful accounts 0
----------------------------------------------------------
0 0 0 0 0
==========================================================
MONTH: 0
Allowance for doubtful accounts 0
----------------------------------------------------------
0 0 0 0 0
==========================================================
MONTH:
Allowance for doubtful accounts
----------------------------------------------------------
0 0 0 0 0
==========================================================
</TABLE>
<PAGE> 6
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 2/28/98
-------
<TABLE>
<CAPTION>
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
------------------------------------------------------------------------------------------
TAXES PAYABLE
<S> <C> <C> <C> <C> <C>
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
-------------------------------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 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: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 2/28/98
-------
<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
---------------------------------------------------------------------------------------------------
<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 0 0 0 0 0
===================================================================================================
</TABLE>
<PAGE> 8
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 2/28/98
-------
<TABLE>
<CAPTION>
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
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) NONE NONE NONE NONE
Adjustments to Reconcile Net
Earnings to Net Cash Provided
Used) by
Operating Activities:
Depreciation & Amortization 0 0 0 0
Decrease (Increase)-Accounts
Receivable 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0
Decrease (Increase)-Prepaid
Expenses 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0
Increase (Decrease)-Pre Petition
Liabilities 0 0 0 0
Increase (Decrease)-Post Petition
Liabilities 0 0 0 0
-------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------
CASH FLOWS USED IN INVESTING
ACTIVITIES
Capital Expenditures 0 0 0 0
Sale of Net Fixed Assets
-------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN
INVESTING ACTIVITIES 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0
Increase (Decrease)-Shareholder
Valuations 0 0 0 0
Purchase of Treasury Stock-Preferred
Shares
-------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING
ACTIVITIES 0 0 0 0 0 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> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED 2/2/98
------------------
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
Elliot J. Mark, Assistant Secretary
Charles W. Shaver, President & COO, Director
Willis Wang, Assistant Secretary
----------------------------------
TOTAL EXECUTIVE PAYROLL 0 0 0 0
==================================
2. INSURANCE
Is Workers' Compensation and other insurance in effect? N/A
----
Are payments current? ----
If any policy has lapsed, been replaced or renewed, state so in the
schedule below. Attach a copy of the new policy's binder or coverage
page.
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- --------------------------------------------------------------------------------
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
PAGE 2
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
3. BANK ACCOUNTS
TOTAL
----------
BANK NAME
ACCOUNT NUMBER
BEGINNING BOOK BALANCE 0
PLUS: Deposits-Collections of A/R
Other Receipts
Loan Advances
LESS: Disbursements
Payroll
Returned Checks
Loan Repayments
OTHER: Adjustments
Transfers In (Out)
----------
ENDING BOOK BALANCE 0
==========
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professional and payments on
Pre-petition debts in the schedule below.
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
----------------- -----------------------------
<S> <C>
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
NONE
----------
0
==========
PRE-PETITION DEBTS
NONE
----------
TOTAL PAYMENTS OF
PRE-PETITION DEBTS 0
==========
</TABLE>
<PAGE> 11
EXHIBIT D
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: 3/18/98
-------
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.
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> 1
EXHIBIT 99.6
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: M4 ENVIRONMENTAL, LP CASE NO.: 97-21389-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
MONTHLY OPERATING REPORT FOR MONTH ENDING: 2/28/98
COMES NOW, M4 ENVIRONMENTAL, LP, Debtor in Possession, and hereby its Monthly
Operating Report for the period commencing 2/1/98 and ending 2/28/98 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: 3/18/98 DEBTOR-IN-POSSESSION
-------
By: /S/ F. GORDON BITTER
------------------------------------------------------
Name & Title: F. Gordon Bitter, CEO & CFO
M4 Environmental Management, Inc.
as General Partner of M4 Environmental LP
400-2 Totten Pond Road
Waltham, MA 02109
Telephone: 781-487-7600
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: M4 ENVIRONMENTAL, LP CASE NO.: 97-21389-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices,
this operating report accounts for all cash transfers among the
Debtor and its affiliates and allocates some, but not all, of the
expenses borne by one affiliate for the benefit of another or the
others. In the absence of a decision for substantive
consolidation, the Debtor will develop an appropriate allocation
of all expenses among the affiliated entities.
<PAGE> 3
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME : M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 2/28/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
---------------------------------------------------------------------------------
<S> <C> <C> <C> <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
Inventory, at cost
Prepaid expenses
Deposits
Other:
Investment in CW LLC 1,497,718 1,497,718 1,497,718 1,497,718
Long Term Notes Receivable from
Lockheed Martin 19,000,000 19,000,000 19,000,000 19,000,000
---------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 22,845,596 22,792,331 22,792,331 22,792,331 0 0 0 0
---------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 10,653,977 10,653,977 10,653,977 10,653,977
Less: Accumulated Depreciation (580,281) (710,532) (828,954) (947,376)
---------------------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 10,073,696 9,943,445 9,825,023 9,706,601 0 0 0 0
---------------------------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 2,414,005 2,414,005 2,414,005 2,414,005 0
Less: Accumulated Amortization (102,512) (120,443) (138,373) (156,304)
---------------------------------------------------------------------------------
TOTAL OTHER ASSETS 2,311,493 2,293,562 2,275,632 2,257,701 0 0 0 0
---------------------------------------------------------------------------------
TOTAL ASSETS 35,230,785 35,029,338 34,892,986 34,756,633 0 0 0 0
=================================================================================
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME : M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 2/28/98
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations
due to cash transfers in
Post Petition Operations (25,762) 63,760 63,760
Unsecured Debt-Obligations incurred in
Post Petition Operations
(See Form OPR-4) 34,057 8,294 8,294
------------------------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 8,295 72,054 72,054 0 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES 35,906,310 35,906,310 35,906,310 35,906,310
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES 40,969,552 40,907,477 40,843,718 40,843,718
------------------------------------------------------------------------------------
TOTAL LIABILITIES 76,875,862 76,822,082 76,822,082 76,822,082 0 0 0 0
PARTNERSHIP EQUITY (DEFICIT)
Retained Earnings
Through Filing Date (41,645,077) (41,645,077) (41,645,077) (41,645,077)
Post Filing Date (147,667) (284,019) (420,372)
------------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (41,645,077) (41,792,744) (41,929,096) (42,065,449) 0 0 0 0
------------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 35,230,785 35,029,338 34,892,986 34,756,633 0 0 0 0
====================================================================================
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME : M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 2/28/98
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 0 0 0 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: 0
Allowance for doubtful accounts 0
-------------------------------------------------------------
0 0 0 0 0
==============================================================
MONTH: 0
Allowance for doubtful accounts 0
-------------------------------------------------------------
0 0 0 0 0
==============================================================
MONTH:
Allowance for doubtful accounts
-------------------------------------------------------------
0 0 0 0 0
==============================================================
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4
CASE NAME : M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 2/28/98
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
---------------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
---------------------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens
Waterfall Financing
ACCRUED INTEREST PAYABLE
Post petition interest on Morgens
Waterfall Financing
---------------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0 0 0
---------------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached
schedules)
Unsecured debt-Bank processed automatic funds
transfer debit to pay bond interest on December 1
against insufficient funds balance. This created
an overdraft of $*,294 and an unsecured debt
obligation to the bank. 8,294
Accrued expenses-Deferred Decontamination
& Decommissioning Expenses 0
---------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 8,294 0 0 0 0
---------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 8,294 0 0 0 0
===================================================
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
INCOME STATEMENT FORM OPR-5
CASE NAME : M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 2/28/98
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------------------------------------------------------------------------------------
<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 (515)
DEPRECIATION AND AMORTIZATION 148,182 136,352 136,353
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) 0 0 0 0 0
=========================================================================================
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME : M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 2/28/98
TOTAL
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED
2/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (147,667) (147,667) (136,352) (136,353)
Adjustments to Reconcile Net
Earnings to
Net Cash Provided (Used) by
Operating Activities:
Depreciation & Amortization 148,182 148,182 136,352 136,353
Decrease (Increase)-
Accounts Receivable 0 0 0 0
Decrease (Increase)-
Inventories 0 0 0 0
Decrease (Increase)-
Prepaid Expenses 0 0 0 0
Decrease (Increase)-
Other Assets 0 0 0 0
Increase (Decrease)-Pre
Petition Liabilities (62,075) (62,075) (63,759 0
Increase (Decrease)-Post
Petition Liabilities 8,295 8,295 8,295 63,759
----------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 0 (53,265) (53,265) 0 0 0 0 0
----------------------------------------------------------------------------------------------
CASH FLOWS USED IN INVESTING
ACTIVITIES
Capital Expenditures 0 0 0 0
Sale of Net Fixed Assets
----------------------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN
INVESTING ACTIVITIES 0 0 0 0 0 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 0 0 0
----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 0 (53,265) (53,265) 0 0 0 0 0
Cash and Cash Equivalents at
Beginning of Period 53,265 53,265 0 0 0 0 0
----------------------------------------------------------------------------------------------
Cash and Cash Equivalents at
End of Period 0 0 0 0 0 0 0 0
==============================================================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME : M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 2/28/98
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>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
</TABLE>
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME : M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
<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 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: 3/18/98
MOLTEN METAL TECHNOLOGY, INC.
By:___________________________________
F. Gordon Bitter
Chief Executive Officer
MMT OF TENNESSEE, INC.
By:___________________________________
F. Gordon Bitter
Vice President
M4 ENVIRONMENTAL, L.P.
By:___________________________________
M4 ENVIRONMENTAL MANAGEMENT, INC.
General Partner
By:___________________________________
F. Gordon Bitter
Vice President
MMT FEDERAL HOLDINGS, INC.
By:___________________________________
F. Gordon Bitter
Vice President
