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Previous: SHOE CARNIVAL INC, DEF 14A, 1998-05-01 |
Next: FUND AMERICA INVESTORS CORP II, 424B5, 1998-05-01 |
<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): April 30, 1998
MOLTEN METAL TECHNOLOGY, INC.
--------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-21042 52-1659959
- --------------------------------- ------------------------- -------------------
(State or Other Jurisdiction of (Commission File Number) (I.R.S. Employer
Incorporation) Identification No.)
421 CURRANT ROAD, FALL RIVER, MA 02720
--------------------------------------
Address of Principal Executive Offices
Registrant's telephone number, including area code: (508) 675-3900
--------------
<PAGE> 2
ITEM 5. OTHER EVENTS
Monthly Operating Reports Filed With United States Trustee
On December 3, 1997, Molten Metal Technology, Inc. (the "Company") and its
subsidiaries filed a voluntary petition for reorganization under Chapter 11 of
the U.S. Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court
for the District of Massachusetts (Eastern Division). The case numbers are as
follows:
Molten Metal Technology, Inc. 97-21385-CJK
MMT of Tennessee Inc. 97-21386-CJK
MMT Federal Holdings, Inc. 97-21387-CJK
M4 Environmental Management Inc. 97-21388-CJK
M4 Environmental L.P. 97-21389-CJK
Pursuant to Federal Rule of Bankruptcy Procedure 2015 and the United States
Trustee's Operating Guidelines and Reporting Requirements for Chapter 11 cases,
each of the Company, MMT of Tennessee, Inc., MMT Federal Holdings, Inc., M4
Environmental Management Inc., and M4 Environmental, L.P. (collectively, the
"Companies") must file a Monthly Operating Report (MOR) with the Office of the
United States Trustee (Region One). The MOR for each of the Companies for the
month ending March 31, 1998, together with a consolidated report, were filed
with the Office of the United States Trustee on April 30, 1998. Copies of these
MORs are attached hereto as Exhibits 99.1 through 99.6 and are incorporated
herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit
Number Description of Document
- ------ -----------------------
99.1 Monthly Operating Report (Consolidated) of the Company and its
subsidiaries for the month ending March 31, 1998 (1)
99.2 Monthly Operating Report of the Company for the month ending March 31,
1998 (1)
99.3 Monthly Operating Report of the Company's subsidiary MMT of Tennessee
Inc. for the month ending March 31, 1998 (1)
99.4 Monthly Operating Report of the Company's subsidiary MMT Federal
Holdings, Inc. for the month ending March 31, 1998 (1)
<PAGE> 3
99.5 Monthly Operating Report of the Company's subsidiary M4 Environmental
Management Inc. for the month ending March 31, 1998 (1)
99.6 Monthly Operating Report of the Company's subsidiary M4 Environmental,
L.P. for the month ending March 31, 1998 (1)
(1) The Company agrees to furnish supplementally a copy of any omitted schedule
or similar attachment to the Commission upon its request.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MOLTEN METAL TECHNOLOGY, INC.
Dated: April 30, 1998 By: /s/ F. Gordon Bitter
-----------------------------------
F. Gordon Bitter
Chief Executive Officer and
Chief Financial Officer
<PAGE> 1
EXHIBIT 99.1
UNITED STATES BANKRUPTCY COURT
EASTERN 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: 3/31/98
------------
COMES NOW, MOLTEN METAL TECHNOLOGY, INC. (CONSOLIDATED) , Debtor in Possession,
and hereby its Monthly Operating Report for the period commencing 3/1/98 and
ending 3/31/98 as shown by the report and exhibits consisting of 10 pages and
containing the following, as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
------------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
------------
X Summary of Accounts Receivable (Form OPR-3)
------------
X Schedule of Post-Petition Liabilities (Form OPR-4)
------------
X Income Statement (Form OPR-5)
------------
X Statement of Sources and Uses of Cash (Form OPR-6)
------------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 4/29/98 DEBTOR-IN-POSSESSION
------------
By: /s/ F. GORDON BITTER
--------------------------------
Name & Title: F. Gordon Bitter, CEO & CFO
Molten Metal Technology, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
EASTERN DIVISION
IN RE: MOLTEN METAL TECHNOLOGY, INC. (CONSOLIDATED) CASE NO.: 97-21385-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices,
this operating report accounts for all cash transfers among the
Debtor and its affiliates and allocates some, but not all, of the
expenses borne by one affiliate for the benefit of another or the
others. In the absence of a decision for substantive
consolidation, the Debtor will develop an appropriate allocation
of expenses among the affiliated entities.
<PAGE> 3
FORM OPR-1
COMPARATIVE BALANCE SHEETS
Case Name: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
Case Number: 97-21385-CJK
MONTH ENDED: 3/31/98
--------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 4,654,326 7,712,988 7,222,698 5,141,902 1,679,329
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 7,589,596 7,768,045 6,001,822 6,121,182 7,604,873
Less: allowance for doubtful accounts (150,000) (150,000) (150,000) (150,000) (150,000)
Accounts Receivable-Other 3,362,193 3,114,234 3,630,556 3,936,087 3,466,844
Inventory, at cost 4,642,718 2,999,979 2,981,683 2,953,384 3,252,606
Prepaid expenses 2,944,501 3,432,683 3,590,453 3,912,070 4,053,504
Deposits 199,046 176,955 258,371 264,731 327,840
Other:
Investment in Nichimen Joint Venture 433,739 433,739 433,739 433,739 433,739
Investment in CW, LLC 1,497,718 1,497,718 1,497,718 1,497,718 1,497,718
Long Term Notes Receivable 20,806,950 20,806,950 20,806,950 20,806,950 20,806,950
Restricted Cash Collateral Deposits 3,921,953 3,930,999 3,940,000 3,948,082 4,236,270
-------------------------------------------------------------------
TOTAL CURRENT ASSETS 49,902,740 51,724,290 50,213,990 48,865,845 47,209,673
-------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 158,480,555 158,577,054 158,881,900 159,301,814 159,543,659
Less: Accumulated Depreciation (23,789,824) (24,685,394) (25,710,487) (26,735,581) (27,727,471)
-------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 134,690,731 133,891,660 133,171,413 132,566,233 131,816,188
-------------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 26,143,973 26,143,421 26,168,331 26,189,604 26,398,877
Less: Accumulated Amortization (4,212,236) (4,412,755) (4,604,973) (4,797,190) (4,992,683)
-------------------------------------------------------------------
TOTAL OTHER ASSETS 21,931,737 21,730,666 21,563,358 21,392,414 21,406,194
-------------------------------------------------------------------
TOTAL ASSETS 206,525,208 207,346,616 204,948,761 202,824,492 200,432,055
===================================================================
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
---------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other
Inventory, at cost
Prepaid expenses
Deposits
Other:
Investment in Nichimen Joint Venture
Investment in CW, LLC
Long Term Notes Receivable
Restricted Cash Collateral Deposits
---------------------------------------
TOTAL CURRENT ASSETS 0 0 0
---------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
---------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 0 0 0
---------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets
Less: Accumulated Amortization
---------------------------------------
TOTAL OTHER ASSETS 0 0 0
---------------------------------------
TOTAL ASSETS 0 0 0
=======================================
</TABLE>
<PAGE> 4
FORM OPR-2
COMPARATIVE BALANCE SHEETS
Case Name: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
Case Number: 97-21385-CJK
MONTH ENDED: 3/31/98
--------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 5,260,000 7,000,000 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 5,414,210
-----------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 8,336,569 9,266,637 11,943,854 12,414,210
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME 12,378,455 10,623,523 10,213,992 10,200,940 10,180,107
TOTAL OTHER PRE PETITION LIABILITIES 242,148,750 241,463,644 242,349,829 240,705,035 240,424,837
-----------------------------------------------------------------------
TOTAL LIABILITIES 254,527,205 260,423,736 261,830,458 262,849,829 263,019,154
-----------------------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock 15,874,471 16,793,713 17,319,518 17,845,322 18,371,126
Common Stock 237,810 237,810 237,810 237,810 237,810
Paid in Capital 170,893,690 170,893,690 170,893,907 170,893,907 170,893,907
Valuation Allowance 9,683 11,636
Dividends Paid (4,343,230) (5,262,472) (5,788,277) (6,314,081) (6,830,562)
Treasury Stock (1,251,319) (1,251,319) (1,251,319) (1,251,319) (1,251,319)
Deferred Compensation (127,137) (120,489) (113,842) (107,838) (101,191)
Retained Earnings
Through Filing Date (229,295,965) (229,295,965) (229,295,965) (229,295,965) (229,295,965)
Post Filing Date (5,083,724) (8,883,529) (12,033,173) (14,610,905)
-----------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (48,001,997) (53,077,120) (56,881,697) (60,025,337) (62,587,099)
-----------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 206,525,208 207,346,616 204,948,761 202,824,492 200,432,055
=======================================================================
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
-----------------------------------------
<S> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4)
-----------------------------------------
TOTAL POST PETITION LIABILITIES 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES
-----------------------------------------
TOTAL LIABILITIES 0 0 0
-----------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock
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
-----------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 0 0 0
=========================================
</TABLE>
<PAGE> 5
FORM OPR-3
SUMMARY OF ACCOUNTS RECEIVABLE
Case Name: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
Case Number: 97-21385-CJK
MONTH ENDED: 3/31/98
--------
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF FILING: 12/3/97 7,589,596 4,116,989 943,972 797,630 1,731,005
Allowance for doubtful accounts (150,000) (150,000)
---------------------------------------------------------------------
7,439,596 4,116,989 943,972 797,630 1,581,005
=====================================================================
MONTH: 12/31/97 7,768,045 1,875,415 3,473,011 519,172 1,900,447
Allowance for doubtful accounts (150,000) (150,000)
---------------------------------------------------------------------
7,618,045 1,875,415 3,473,011 519,172 1,750,447
=====================================================================
MONTH: 1/31/98 6,001,822 1,290,680 1,267,373 1,458,561 1,985,208
Allowance for doubtful accounts (150,000) (150,000)
---------------------------------------------------------------------
5,851,822 1,290,680 1,267,373 1,458,561 1,835,208
=====================================================================
MONTH: 2/28/98 6,121,182 1,377,798 1,019,381 572,967 3,151,036
Allowance for doubtful accounts (150,000) (150,000)
---------------------------------------------------------------------
5,971,182 1,377,798 1,019,381 572,967 3,001,036
=====================================================================
MONTH: 3/31/98 7,604,873 3,156,081 1,505,814 286,492 2,656,486
Allowance for doubtful accounts 0
---------------------------------------------------------------------
7,604,873 3,156,081 1,505,814 286,492 2,656,486
=====================================================================
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
FORM OPR-4
SCHEDULE OF POST PETITION LIABILITIES
Case Name: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
Case Number: 97-21385-CJK
MONTH ENDED: 3/31/98
--------
<TABLE>
<CAPTION>
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
-----------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
-----------------------------------------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens Waterfall Financing 3/20/98 12/31/99 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) 872,747
Payroll withholdings
Accrued Payroll
Accrued expenses-Estimated liability incurred, but not invoiced
as of the end of the period and deferred obligations. 4,541,463
-----------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 5,414,210 0 0 0 0
-----------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 12,414,210 0 0 0 0
===============================================
</TABLE>
<PAGE> 7
FORM OPR-5
INCOME STATEMENT
Case Name: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
Case Number: 97-21385-CJK
MONTH ENDED: 3/31/98
--------
<TABLE>
<CAPTION>
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET REVENUE (INCOME) 0 4,103,641 1,797,407 2,069,601 2,643,744
------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages 224,548 1,676,135 1,353,865 1,050,129 1,123,331
Less: Salaries & wages capitalized
in fixed assets (121,795) (120,000)
Benefits 562,849 318,037 314,271 311,609
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 112,496 105,018 431,112 522,653
Financing costs 212,000 9,000
Insurance 108,638 114,934 84,457 83,183
Legal services 342,713
Materials 1,151,084 866,199 418,286 562,465
Office expense & supplies 37,650 21,138 66,470 51,520
Other 18,202 57,436 8,528 4,343
Outside services 814,013 443,144 473,118 443,347
Professional services 857,587 59,868 145,646 124,269
Rent-equipment 104,873 39,324 87,631 58,604
Rent-office/buildings 264,752 317,269 107,221 (94,110)
Supplies-processing 18,515
Taxes 87,546 40,219 31,143 35,459
Telephone 134,438 46,167 38,809 17,319
Transportation 110,472 93,218 164,655 132,244
Travel & entertainment 43,509 71,260 80,591 110,575
Utilities 234,343 8,819 73,848 48,105
------------------------------------------------------------
TOTAL COST OF GOODS SOLD 224,548 8,137,198 3,849,045 3,482,673 3,534,916
------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES (224,548) (4,033,557) (2,051,638) (1,413,072) (891,172)
------------------------------------------------------------
INTEREST(INCOME) EXPENSE 62,539 90,855 91,010 71,976
DEPRECIATION AND AMORTIZATION 1,096,271 1,217,312 1,217,312 1,230,989
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE 440,000 428,250 352,871
OTHER (INCOME) EXPENSE (108,643)
(GAIN) LOSS ON SALE OF ASSETS 30,724
------------------------------------------------------------
NET INCOME (LOSS) (224,548) (5,083,724) (3,799,805) (3,149,644) (2,577,732)
============================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
-----------------------------------
<S> <C> <C> <C> <C>
NET REVENUE (INCOME)
-----------------------------------
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages capitalized
in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
-----------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0
-----------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0
-----------------------------------
INTEREST(INCOME) EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-----------------------------------
NET INCOME (LOSS) 0 0 0 0
===================================
</TABLE>
<PAGE> 8
FORM OPR-6
STATEMENT OF SOURCES AND USES OF CASH
Case Name: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
Case Number: 97-21385-CJK
MONTH ENDED: 3/31/98
--------
<TABLE>
<CAPTION>
TOTAL
PRE POST MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98 3/1/98
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (5,083,724) (5,083,724) (3,799,805) (3,149,644) (2,577,732)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating
Activities:
Depreciation & Amortization 1,096,271 1,096,271 1,217,312 1,217,312 1,230,989
Decrease (Increase)-Accounts Receivable 69,510 69,510 1,249,901 (424,891) (1,014,448)
Decrease (Increase)-Inventories 1,642,739 1,642,739 18,296 28,299 (299,222)
Decrease (Increase)-Prepaid Expenses (488,182) (488,182) (157,770) (321,617) (141,434)
Decrease (Increase)-Other Assets 13,597 13,597 (90,417) (14,442) (351,297)
Increase (Decrease)-Pre Petition Liabilities (2,440,220) (2,440,220) 476,653 (1,657,847) (301,032)
Increase (Decrease)-Post Petition Liabilities 3,076,569 3,076,569 (809,932) 2,677,217 470,356
---------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 0 (2,113,440) (2,113,440) (1,895,762) (1,645,613) (2,983,820)
---------------------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (96,499) (96,499) (329,756) (441,187) (451,118)
Sale of Net Fixed Assets (43,605)
---------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING
ACTIVITIES 0 (96,499) (96,499) (329,756) (441,187) (494,723)
---------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 5,260,000 5,260,000 1,740,000 0 0
Increase (Decrease)-Shareholder Valuations 8,601 8,601 (4,772) 6,004 15,970
Purchase of Treasury Stock-Preferred Shares
---------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING
ACTIVITIES 0 5,268,601 5,268,601 1,735,228 6,004 15,970
---------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 0 3,058,662 3,058,662 (490,290) (2,080,796) (3,462,573)
Cash and Cash Equivalents at Beginning of
Period 4,654,326 4,654,326 7,712,988 7,222,698 5,141,902
---------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 7,712,988 7,712,988 7,222,698 5,141,902 1,679,329
=================================================================================
<CAPTION>
MONTH MONTH
ENDED ENDED
--------------------
<S> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating
Activities:
Depreciation & Amortization
Decrease (Increase)-Accounts Receivable
Decrease (Increase)-Inventories
Decrease (Increase)-Prepaid Expenses
Decrease (Increase)-Other Assets
Increase (Decrease)-Pre Petition Liabilities
Increase (Decrease)-Post Petition Liabilities
--------------------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 0 0
--------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures
Sale of Net Fixed Assets
--------------------
NET CASH PROVIDED (USED) IN INVESTING
ACTIVITIES 0 0
--------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall
Increase (Decrease)-Shareholder Valuations
Purchase of Treasury Stock-Preferred Shares
--------------------
NET CASH PROVIDED (USED) IN FINANCING
ACTIVITIES 0 0
--------------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 0 0
Cash and Cash Equivalents at Beginning of
Period 1,679,329 1,679,329
--------------------
Cash and Cash Equivalents at End of Period 1,679,329 1,679,329
====================
</TABLE>
<PAGE> 9
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
Case Name: MOLTEN METAL TECHNOLOGY, INC.
(CONSOLIDATED)
Case Number: 97-21385-CJK
MONTH ENDED: 3/31/98
--------
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 3/6 & 3/20/98 17,308 9,996 5,439 5,439
Eugene Berman, VP, Regul, Legal, & Extern Aff 3/6 & 3/20/98 14,011 7,831 5,385 5,385
F. Gordon Bitter, CEO & CFO, Director 3/6 & 3/20/98 29,126 15,911 13,110 13,110
Steven Brien, VP, Chemical Sales & Marketing 3/6 & 3/20/98 12,308 7,109 4,325 4,325
Victor E. Gatto, Jr., VP, Government Markets 3/6 & 3/20/98 13,862 12,309 1,415 1,415
David Hoey, V,P Business Development 3/6 & 3/20/98 13,165 8,470 4,560 4,560
F. James Howie, III, VP, Procurement 3/6 & 3/20/98 11,097 7,286 3,681 3,681
Ethan E. Jacks, VP, General Counsel, Secretary 3/6 & 3/20/98 13,551 8,465 4,802 4,802
James E. Johnston, VP, Technical Development 3/6 & 3/20/98 10,551 6,104 3,365 3,365
Christopher Nagel, Chief Technology Officer 3/6 & 3/20/98 11,538 6,488 3,995 3,995
Kathy Santoro, VP, Human Resources 3/6 & 3/20/98 4,339 1,411 2,928 2,928
Charles W. Shaver, President & COO, Director 3/6 & 3/20/98 20,472 11,743 7,684 7,684
------------------------------------------
TOTAL EXECUTIVE PAYROLL 171,328 103,123 60,689 60,689
==========================================
</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
ATTACHMENT 1
CHAPTER 11
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 MMT TENNESSEE TENNESSEE TENNESSEE
OPERATING PAYROLL PAYROLL OPERATING PAYROLL PAYROLL
--------- ------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
BANK NAME U.S. TRUST U.S. TRUST NATIONSBANK U.S. TRUST U.S. TRUST NATIONSBANK
ACCOUNT NUMBER 1100937836 1100937844 3001270655 110937851 1100937869 3001270846
BEGINNING BOOK BALANCE 1,188,914 31,396 1,043,692 33,941
PLUS: Deposits-Collections of A/R 2,461,748
Other Receipts 42,432
Loan Advances
LESS: Disbursements (4,355,921)
Payroll (31,396) (703,713) (276,452) (33,941) (395,599)
Returned Checks
Loan Repayments
OTHER: Adjustments (527)
Transfers In (Out) 2,900,638 720,100 (2,033,838) 413,100
-------------------------------------------------------------------------------------
ENDING BOOK BALANCE (224,464) 0 16,387 1,195,150 0 17,501
=====================================================================================
<CAPTION>
ALEX OPPEN- M4 LP ESCROW AT MMT FED
BROWN HEIMER OPERATING ROPES HOLDINGS TOTAL
----- ------ --------- ----- -------- -----
<S> <C> <C> <C> <C> <C> <C>
ALEX OPPEN- ROPES &
BANK NAME BROWN HEIMER SUNTRUST GRAY U.S. TRUST
ACCOUNT NUMBER 210-71007 033-82238 0005618983 002239244-1
BEGINNING BOOK BALANCE 6,543 2,676,006 (8,294) 169,204 500 5,141,902
PLUS: Deposits-Collections of A/R 2,461,748
Other Receipts 42,432
Loan Advances 0
0
LESS: Disbursements (169,204) (4,525,125)
Payroll (1,441,101)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments (527)
Transfers In (Out) (2,000,000) 0
0
-----------------------------------------------------------------------------
ENDING BOOK BALANCE 6,543 676,006 (8,294) 0 500 1,679,329
=============================================================================
</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> 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: 3/31/98
COMES NOW, MOLTEN METAL TECHNOLOGY, INC., Debtor in Possession, and hereby
its Monthly Operating Report for the period commencing 3/1/98 and ending 3/31/98
as shown by the report and exhibits consisting of 10 pages and containing the
following, as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
-----
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
-----
X Summary of Accounts Receivable (Form OPR-3)
-----
X Schedule of Post-Petition Liabilities (Form OPR-4)
-----
X Income Statement (Form OPR-5)
-----
X Statement of Sources and Uses of Cash (Form OPR-6)
-----
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 4/29/98 DEBTOR-IN-POSSESSION
------
By: /S/ F. GORDON BITTER
------------------------------
Name & Title: F. Gordon Bitter, CEO & CFO
Molten Metal Technology, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
IN RE: MOLTEN METAL TECHNOLOGY, INC. CASE NO.: 97-21385-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices, this
operating report accounts for all cash transfers among the Debtor and its
affiliates and allocates some, but not all, of the expenses borne by one
affiliate for the benefit of another or the others. In the absence of a decision
for substantive consolidation, the Debtor will develop an appropriate allocation
of expenses among the affiliated entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 4,893,869 6,713,407 4,953,236 4,072,063 474,472
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 1,094,993 891,484 451,441 392,839 830,839
Less: allowance for doubtful accounts
Accounts Receivable-Other 336,181 662,994 673,987 633,723 627,686
Accounts Receivable-Intercompany
Inventory, at cost 3,032,515 1,832,965 1,832,965 1,832,965 1,832,965
Prepaid expenses 2,994,736 3,276,848 3,447,882 3,783,158 3,998,312
Deposits 141,546 119,455 181,446 185,611 246,394
Other:
Investment in Nichimen Joint Venture 433,739 433,739 433,739 433,739 433,739
Investment in MMT of Tennessee 10 10 10 10 10
Investment in MMT Federal Holdings 1,000 1,000 1,000 1,000 1,000
Long Term Notes Receivable 1,806,950 1,806,950 1,806,950 1,806,950 1,806,950
Restricted Cash Collateral Deposits 3,706,433 3,715,479 3,724,480 3,732,562 4,020,750
---------- ---------- ---------- ---------- ----------
TOTAL CURRENT ASSETS 18,441,972 19,454,331 17,507,136 16,874,620 14,273,117
---------- ---------- ---------- ---------- ----------
PROPERTY, PLANT AND EQUIPMENT, AT COST 86,181,337 86,206,483 86,347,343 86,409,258 86,482,544
Less: Accumulated Depreciation (21,105,234) (21,693,189) (22,282,884) (22,872,579) (23,421,627)
---------- ---------- ---------- ---------- ----------
NET PROPERTY, PLANT AND EQUIPMENT 65,076,103 64,513,294 64,064,459 63,536,679 63,060,917
---------- ---------- ---------- ---------- ----------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 11,221,338 11,220,787 11,245,697 11,266,969 11,476,242
Less: Accumulated Amortization (1,765,428) (1,783,197) (1,801,012) (1,818,825) (1,839,916)
---------- ---------- ---------- ---------- ----------
TOTAL OTHER ASSETS 9,455,910 9,437,590 9,444,685 9,448,144 9,636,326
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS 92,973,985 93,405,215 91,016,280 89,859,443 86,970,360
========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other
Accounts Receivable-Intercompany
Inventory, at cost
Prepaid expenses
Deposits
Other:
Investment in Nichimen Joint Venture
Investment in MMT of Tennessee
Investment in MMT Federal Holdings
Long Term Notes Receivable
Restricted Cash Collateral Deposits
--------- --------- ---------
TOTAL CURRENT ASSETS 0 0 0
--------- --------- ---------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
--------- --------- ---------
NET PROPERTY, PLANT AND EQUIPMENT 0 0 0
--------- --------- ---------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets
Less: Accumulated Amortization
--------- --------- ---------
TOTAL OTHER ASSETS 0 0 0
--------- --------- ---------
TOTAL ASSETS 0 0 0
========= ========= =========
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 5,260,000 7,000,000 7,000,000
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations (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
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
------------ ------------ ------------ ------------
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) (11,221,130)
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 9,924,466 5,303,787 2,474,975 500,371
------------ ------------ ------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 92,973,985 93,405,215 91,016,280 89,859,443
------------ ------------ ------------ ------------
92,973,985 93,405,215 91,016,280 89,859,443
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MONTH
ENDED MONTH MONTH MONTH
3/31/98 ENDED ENDED ENDED
------------ ----- ----- -----
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4) 7,000,000
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations (3,038,101)
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 2,468,346
------------ ----- ----- -----
TOTAL POST PETITION LIABILITIES 6,430,245 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES (126,615,241)
DEFERRED REVENUE/DEFERRED INCOME 9,123,593
TOTAL OTHER PRE PETITION LIABILITIES 199,295,786
------------ ----- ----- -----
TOTAL LIABILITIES 88,234,383 0 0 0
------------ ----- ----- -----
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock 18,371,126
Common Stock 237,810
Paid in Capital 170,893,690
Valuation Allowance 9,323
Dividends Paid (6,839,885)
Treasury Stock (1,251,319)
Deferred Compensation (101,191)
Retained Earnings
Through Filing Date
Post Filing Date
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (1,264,023) 0 0 0
------------ ----- ----- -----
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 86,970,360 0 0 0
------------ ----- ----- -----
86,970,360 0 0 0
============ ===== ===== =====
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
---------- ------- ------- ------- ---------
<S> <C> <C> <C> <C> <C>
DATE OF FILING: 12/3/97 1,094,993 818,022 66,192 42,053 168,726
Allowance for doubtful accounts (150,000) (150,000)
---------- ------- ------- ------- --------
944,993 818,022 66,192 42,053 18,726
========== ======= ======= ======= ========
MONTH: 12/31/97 891,484 8 680,697 0 210,779
Allowance for doubtful accounts 0
---------- ------- ------- ------- -------
891,484 8 680,697 0 210,779
========== ======= ======= ======= ========
MONTH: 1/31/98 451,441 0 9 240,654 210,778
Allowance for doubtful accounts 0
---------- ------- ------- ------- -------
451,441 0 9 240,654 210,778
========== ======= ======= ======= ========
MONTH: 2/28/98 392,839 0 (58,602) 8 451,433
Allowance for doubtful accounts 0
---------- ------- ------- ------- --------
392,839 0 (58,602) 8 451,433
========== ======= ======= ======= ========
MONTH: 3/31/98 830,839 438,009 (58,602) 451,432
Allowance for doubtful accounts 0
---------- ------- ------- ------- --------
830,839 438,009 0 (58,602) 451,432
========== ======= ======= ======= ========
MONTH: 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: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
-------- ------ ---------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
---------- ------ ------ ------ -------
TOTAL TAXES PAYABLE 0 0 0 0 0
---------- ------ ------ ------ -------
- -------------------
POST PETITION SECURED DEBT
DIP FINANCING
Post petition advances-Morgens Waterfall Financing 3/20/98 12/31/99 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) 872,747
Payroll withholdings
Accrued Payroll
Accrued expenses-Estimated liability incurred, but not invoiced
as of the end of the period and deferred obligations. 1,595,599
---------- ------ ------ ------ -------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 2,468,346 0 0 0 0
---------- ------ ------ ------ -------
TOTAL ALL POST PETITION LIABILITIES 9,468,346 0 0 0 0
========== ====== ====== ====== =======
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
-------- ---------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
NET REVENUE (INCOME) 1,871,483 0 438,373
-------- ---------- --------- -------- ---------
COST OF GOODS SOLD
Salaries & wages 1,154,821 868,277 666,693 595,742
Less: Salaries & wages capitalized in fixed assets 0
Benefits 489,984 226,464 207,528 226,374
Bad debt expense 0
Cost of goods sold 1,200,000 (20,833) 20,833)
Decontamination & disposal 18,888 18,888 18,888
Disposal costs-secondary wastes 145,779 (100,000)
Financing costs 212,000 9,000
Insurance 98,733 94,603 64,126 62,851
Legal services 0
Materials 391,707 70,359 (289,672) 29,516
Office expense & supplies 248 (7,193) 58,624 48,345
Other 4,393 57,436 416 3,162
Outside services 369,073 143,619 (213,980) 83,245
Professional services 1,073,857 (99,264) 60,575 111,138
Rent-equipment 73,365 1,759 42,453 19,203
Rent-office/buildings 260,103 307,269 102,221 (94,110)
Supplies-processing (15,755)
Taxes 79,546 23,100 23,143 23,656
Telephone 123,714 34,394 36,810 17,060
Transportation 3,355 20,000 (10,055)
Travel & entertainment 20,585 50,206 55,770 61,786
Utilities 200,831 3,345 39,704 (16,525)
-------- ---------- --------- -------- ---------
TOTAL COST OF GOODS SOLD 0 5,902,094 1,685,674 863,244 1,169,498
-------- ---------- --------- -------- ---------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 (4,030,611) (1,685,674) (863,244) (731,125)
-------- ---------- --------- -------- ---------
INTEREST EXPENSE 90,855 90,960 71,976
DEPRECIATION AND AMORTIZATION 605,724 607,511 607,510 594,069
INCOME TAX EXPENSE (BENEFIT) 0
REORGANIZATION EXPENSE 440,000 428,000 343,147
OTHER (INCOME) EXPENSE 0
(GAIN) LOSS ON SALE OF ASSETS 0 30,724
-------- ---------- --------- --------- ---------
NET INCOME (LOSS) 0 (4,636,335) (2,824,040) (1,989,714) (1,771,041)
======== ========== ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET REVENUE (INCOME)
------ ------ ------ ------
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages capitalized in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
------ ------ ------ ------
TOTAL COST OF GOODS SOLD 0 0 0 0
------ ------ ------ ------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0
------ ------ ------ ------
INTEREST EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
------ ------ ------ ------
NET INCOME (LOSS) 0 0 0 0
====== ====== ====== ======
</TABLE>
<PAGE> 8
SUMMARY OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
TOTAL
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (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)
----------- ----------- ----------- ----------- ----------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (25,146) (25,146) (140,860) (61,915)
Sale of Net Fixed Assets
----------- ----------- ----------- ----------- ----------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 (25,146) (25,146) (140,860) (61,915)
----------- ----------- ----------- ----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 5,260,000 5,260,000 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
----------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 1,819,538 1,819,538 (1,760,171) (881,173)
Cash and Cash Equivalents at Beginning of Period 4,893,869 4,893,869 6,713,407 4,953,236
----------- ----------- ----------- ----------- ----------
Cash and Cash Equivalents at End of Period 0 6,713,407 6,713,407 4,953,236 4,072,063
=========== =========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
MONTH
ENDED MONTH MONTH
3/31/98 ENDED ENDED
----------- ----------- -----------
<S> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (1,771,041)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities: 23,930
Depreciation & Amortization 570,139 594,069
Decrease (Increase)-Accounts Receivable (431,963)
Decrease (Increase)-Inventories 0
Decrease (Increase)-Prepaid Expenses (215,154)
Decrease (Increase)-Other Assets (558,244)
Increase (Decrease)-Pre Petition Liabilities (271,163)
Increase (Decrease)-Post Petition Liabilities (832,693)
Increase (Decrease)-Deferred Revenue (20,833)
----------- ----------- -----------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (3,530,952) 617,999 0
----------- ----------- -----------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures (73,286)
Sale of Net Fixed Assets
----------- ----------- -----------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (73,286) 0 0
----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0
Increase (Decrease)-Shareholder Valuations 6,647
Purchase of Treasury Stock-Preferred Shares
----------- ----------- -----------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 6,647 0 0
----------- ----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,597,591) 617,999 0
Cash and Cash Equivalents at Beginning of Period 4,072,063 474,472 1,092,471
----------- ----------- -----------
Cash and Cash Equivalents at End of Period 474,472 1,092,471 1,092,471
=========== =========== ===========
</TABLE>
<PAGE> 9
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 3/31/98
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and
paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
----------------- ------------- ------- ------- ------ --------
<S> <C> <C> <C> <C> <C>
H. W. Arrowsmith, VP Nuclear Sales & Marketing 3/6 & 3/20/98 17,308 9,996 5,439 5,439
Eugene Berman, VP, Regul, Legal, & Extern Aff 3/6 & 3/20/98 14,011 7,831 5,385 5,385
F. Gordon Bitter, CEO & CFO, Director 3/6 & 3/20/98 29,126 15,911 13,110 13,110
Steven Brien, VP, Chemical Sales & Marketing 3/6 & 3/20/98 12,308 7,109 4,325 4,325
Victor E. Gatto, Jr., VP, Government Markets 3/6 & 3/20/98 13,862 12,309 1,415 1,415
David Hoey, V,P Business Development 3/6 & 3/20/98 13,165 8,470 4,560 4,560
F. James Howie, III, VP, Procurement 3/6 & 3/20/98 11,097 7,286 3,681 3,681
Ethan E. Jacks, VP, General Counsel, Secretary 3/6 & 3/20/98 13,551 8,465 4,802 4,802
James E. Johnston, VP, Technical Development 3/6 & 3/20/98 10,551 6,104 3,365 3,365
Christopher Nagel, Chief Technology Officer 3/6 & 3/20/98 11,538 6,488 3,995 3,995
Kathy Santoro, VP, Human Resources 3/6 & 3/20/98 4,339 1,411 2,928 2,928
Charles W. Shaver, President & COO, Director 3/6 & 3/20/98 20,472 11,743 7,684 7,684
------- ------- ------ -------
TOTAL EXECUTIVE PAYROLL 171,328 103,123 60,689 60,689
======= ======= ====== =======
</TABLE>
2. INSURANCE
<TABLE>
<S> <C>
Is Workers' Compensation and other insurance in effect? Yes
---
Are payments current? Yes
---
</TABLE>
If any policy has lapsed, been replaced or renewed, state so in the
schedule below. Attach a copy of the new policy's binder or coverage
page.
<TABLE>
<CAPTION>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
</TABLE>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
<PAGE> 10
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MOLTEN METAL TECHNOLOGY, INC.
CASE NUMBER: 97-21385-CJK
MONTH ENDED: 3/31/98
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
MMT MMT MMT ALEX OPPEN- ESCROW AT
OPERATING PAYROLL PAYROLL BROWN HEIMER ROPES TOTAL
---------- ---------- ----------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ALEX OPPEN- ROPES &
BANK NAME U.S. TRUST U.S. TRUST NATIONSBANK BROWN HEIMER GRAY
ACCOUNT NUMBER 1100937836 1100937844 3001270655 210-71007 033-82238
BEGINNING BOOK BALANCE 1,188,914 31,396 6,543 2,676,006 169,204 4,072,063
PLUS: Deposits-Collections of A/R 0
Other Receipts 42,432 42,432
Loan Advances 0
0
LESS: Disbursements (4,355,921) (169,204) (4,525,125)
Payroll (31,396) (703,713) (735,109)
Returned Checks 0
Loan Repayments 0
0
OTHER: Adjustments (527) (527)
Transfers In (Out) 2,900,638 720,100 (2,000,000) 1,620,738
0
---------- ---------- ----------- --------- ---------- ---------- ----------
ENDING BOOK BALANCE (224,464) 0 16,387 6,543 676,006 0 474,472
========== ========== =========== ======== ========= ========= ===========
</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
======
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
======
</TABLE>
<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: 3/31/98
-------
COMES NOW, MMT OF TENNESSEE, INC., Debtor in Possession, and hereby its Monthly
Operating Report for the period commencing 3/1/98 and ending 3/31/98 as shown by
the report and exhibits consisting of 10 pages and containing the following, as
indicated:
X Monthly Reporting Questionnaire (Attachment 1)
-----
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
-----
X Summary of Accounts Receivable (Form OPR-3)
-----
X Schedule of Post-Petition Liabilities (Form OPR-4)
-----
X Income Statement (Form OPR-5)
-----
X Statement of Sources and Uses of Cash (Form OPR-6)
-----
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 4/29/98 DEBTOR-IN-POSSESSION
By:
/s/ F. GORDON BITTER
-------------------------------------
Name & Title: F. Gordon Bitter, Vice President
MMT of Tennessee, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACHUSETTS
IN RE: MMT OF TENNESSEE, INC. CASE NO.: 97-21386-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices, this operating
report accounts for all cash transfers among the Debtor and its affiliates and
allocates some, but not all, of the expenses borne by one affiliate for the
benefit of another or the others. In the absence of a decision for substantive
consolidation, the Debtor will develop an appropriate allocation of 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: 3/31/98
-------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
-------------------------------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 66,358 1,007,375 2,277,256 1,077,633
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 6,494,603 6,876,561 6,001,822 6,051,677
Less: allowance for doubtful accounts (150,000) (150,000) (150,000) (150,000)
Accounts Receivable-Other 291,141 156,625 207,867 693,516
Inventory, at cost 1,610,203 1,167,014 1,148,718 1,120,419
Prepaid expenses 30,357 155,838 145,218 128,915
Deposits 57,500 57,500 76,925 79,120
Other:
Restricted Cash Collateral Deposits 215,520 215,520 215,520 215,520
-------------------------------------------------------
TOTAL CURRENT ASSETS 8,615,682 9,486,433 9,923,326 9,216,800
-------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 61,645,241 61,716,593 61,880,581 62,238,580
Less: Accumulated Depreciation (2,104,309) (2,281,673) (2,598,650) (2,915,627)
-------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 59,540,932 59,434,920 59,281,931 59,322,953
-------------------------------------------------------
OTHER ASSETS (Itemized if value exceeds
10% of "Total Assets")
Intangible Assets 12,508,628 12,508,628 12,508,630 12,508,629
Less: Accumulated Amortization (2,344,293) (2,509,114) (2,665,588) (2,822,059)
-------------------------------------------------------
TOTAL OTHER ASSETS 10,164,335 9,999,514 9,843,042 9,686,570
-------------------------------------------------------
TOTAL ASSETS 78,320,949 78,920,867 79,048,299 78,226,323
=======================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98
--------------------------------------------
<C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 1,212,651
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3) 6,624,034
Less: allowance for doubtful accounts (150,000)
Accounts Receivable-Other 692,222
Inventory, at cost 1,369,641
Prepaid expenses 107,515
Deposits 81,446
Other:
Restricted Cash Collateral Deposits 215,520
--------------------------------------------
TOTAL CURRENT ASSETS 10,153,029 0 0 0
--------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 62,407,138
Less: Accumulated Depreciation (3,240,046)
--------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 59,167,092 0 0 0
--------------------------------------------
OTHER ASSETS (Itemized if value exceeds
10% of "Total Assets")
Intangible Assets 12,508,629
Less: Accumulated Amortization (2,978,531)
--------------------------------------------
TOTAL OTHER ASSETS 9,530,098 0 0 0
--------------------------------------------
TOTAL ASSETS 78,850,219 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: 3/31/98
-------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
-------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations 1,209,386 2,137,381 1,765,503
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 35,238 306,240 2,851,654
-------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 1,244,624 2,443,621 4,617,157
PRE PETITION INTERCOMPANY LIABILITIES 90,708,931 90,708,931 90,708,931 90,708,931
DEFERRED REVENUE/DEFERRED INCOME 1,226,727 1,280,885 1,048,733 1,056,514
TOTAL OTHER PRE PETITION LIABILITIES 2,666,165 2,274,081 2,274,081 294,367
-------------------------------------------------------
TOTAL LIABILITIES 94,601,823 95,508,521 96,475,366 96,676,969
-------------------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock 10 10 10 10
Paid in Capital
Valuation Allowance
Dividends Paid
Treasury Stock
Deferred Compensation
Retained Earnings
Through Filing Date (16,280,884) (16,280,884) (16,280,884) (16,280,884)
Post Filing Date (306,780) (1,146,193) (2,169,772)
-------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (16,280,874) (16,587,654) (17,427,067) (18,450,646)
-------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 78,320,949 78,920,867 79,048,299 78,226,323
=======================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98
----------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations 2,973,763
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 2,945,864
----------------------------------------
TOTAL POST PETITION LIABILITIES 5,919,627 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES 90,708,931
DEFERRED REVENUE/DEFERRED INCOME 1,056,514
TOTAL OTHER PRE PETITION LIABILITIES 285,142
----------------------------------------
TOTAL LIABILITIES 97,970,214 0 0 0
----------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock
Common Stock 10
Paid in Capital
Valuation Allowance
Dividends Paid
Treasury Stock
Deferred Compensation
Retained Earnings
Through Filing Date (16,280,884)
Post Filing Date (2,839,121)
----------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (19,119,995) 0 0 0
----------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 78,850,219 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: 3/31/98
-------
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF FILING: 12/3/97 6,494,603 3,298,967 877,780 755,577 1,562,279
Allowance for doubtful accounts (150,000) (150,000)
===================================================================
6,344,603 3,298,967 877,780 755,577 1,412,279
===================================================================
MONTH: 12/31/97 6,876,561 1,785,407 2,792,314 519,172 1,779,668
Allowance for doubtful accounts (150,000) (150,000)
===================================================================
6,726,561 1,785,407 2,792,314 519,172 1,629,668
===================================================================
MONTH: 1/31/98 6,001,822 1,290,680 1,267,373 1,458,561 1,985,208
Allowance for doubtful accounts (150,000) (150,000)
===================================================================
5,851,822 1,290,680 1,267,373 1,458,561 1,835,208
===================================================================
MONTH: 2/28/98 6,051,677 1,308,292 1,019,381 572,967 3,151,037
Allowance for doubtful accounts (150,000) (150,000)
===================================================================
5,901,677 1,308,292 1,019,381 572,967 3,001,037
===================================================================
MONTH: 3/31/98 6,624,034 2,568,080 1,505,814 345,094 2,205,046
Allowance for doubtful accounts 0
===================================================================
6,624,034 2,568,080 1,505,814 345,094 2,205,046
===================================================================
MONTH: 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: 3/31/98
-------
<TABLE>
<CAPTION>
MONTH ENDED: 3/31/98
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
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. 2,945,864
--------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 2,945,864 0 0 0 0
--------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 2,945,864 0 0 0 0
==================================================
</TABLE>
<PAGE> 7
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-5
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 3/31/98
-------
<TABLE>
<CAPTION>
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
----------------------------------------------------
NET REVENUE (INCOME) 2,232,158 1,797,407 2,069,601 2,205,371
----------------------------------------------------
<S> <C> <C> <C> <C> <C>
COST OF GOODS SOLD
Salaries & wages 521,313 485,588 383,435 527,591
Less: Salaries & wages capitalized in fixed assets (121,795) (120,000)
Benefits 72,866 91,573 106,745 85,236
Bad debt expense 18,625
Cost of goods sold
Decontamination & disposal 7,870 7,870 7,870 7,870
Disposal costs-secondary wastes (378) 205,018 431,112 522,653
Financing costs
Insurance 9,905 20,331 20,331 20,331
Legal services
Materials 752,418 795,840 709,052 547,077
Office expense & supplies 28,331 12,759 2,792
Other 5,866 1,064 1,878
Outside services 444,939 299,525 498,275
Professional services 126,443 159,132 284,046 386,411
Rent-equipment 31,509 37,565 45,179 39,401
Rent-office/buildings 4,649 10,000 5,000
Supplies-processing 18,515 15,755
Taxes 8,000 17,119 8,000 10,393
Telephone 10,724 11,773 2,000 260
Transportation 107,117 73,218 165,645 128,791
Travel & entertainment 22,923 21,054 24,819 48,515
Utilities 33,512 5,474 34,099 64,629
----------------------------------------------------
TOTAL COST OF GOODS SOLD 0 2,196,816 2,163,371 2,619,431 2,393,828
----------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 35,342 (365,964) (549,830) (188,457)
----------------------------------------------------
INTEREST EXPENSE 50
DEPRECIATION AND AMORTIZATION 342,185 473,449 473,449 480,892
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE 250
OTHER (INCOME) EXPENSE (63)
(GAIN) LOSS ON SALE OF ASSETS
----------------------------------------------------
NET INCOME (LOSS) 0 (306,780) (839,413)(1,023,579) (669,349)
====================================================
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
-------------------------------------
NET REVENUE (INCOME)
-------------------------------------
<S> <C> <C> <C> <C>
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages capitalized in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
-------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0
-------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0
-------------------------------------
INTEREST EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-------------------------------------
NET INCOME (LOSS) 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: 3/31/98
-------
<TABLE>
<CAPTION>
TOTAL TOTAL
PRE POST MONTH MONTH
PETITION PETITION ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98
--------------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (306,780) (306,780) (839,413)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 342,185 342,185 473,449
Decrease (Increase)-Accounts Receivable (247,442) (247,442) 823,497
Decrease (Increase)-Inventories 443,189 443,189 18,296
Decrease (Increase)-Prepaid Expenses (125,481) (125,481) 10,620
Decrease (Increase)-Other Assets 0 0 (19,427)
Increase (Decrease)-Pre Petition Liabilities (392,084) (392,084) 0
Increase (Decrease)-Deferred revenue 54,158 54,158 (232,150)
Increase (Decrease)-Post Petition Liabilities 1,244,624 1,244,624 1,198,997
--------------------------------------------------
Net Cash Provided (Used) by Operating Activities 0 1,012,369 1,012,369 1,433,869
--------------------------------------------------
Cash Flows Used in Investing Activities
Capital Expenditures (71,352) (71,352) (163,988)
Sale of Net Fixed Assets
--------------------------------------------------
Net Cash Provided (Used) in Investing Activities 0 (71,352) (71,352) (163,988)
--------------------------------------------------
Cash Flows From Financing Activities:
Increase (Decrease)-Morgens Waterfall 0 0 0
Increase (Decrease)-Shareholder Valuations 0 0 0
Purchase of Treasury Stock-Preferred Shares
--------------------------------------------------
Net Cash Provided (Used) in Financing Activities 0 0 0 0
--------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 941,017 941,017 1,269,881
Cash and Cash Equivalents at Beginning of Period 66,358 66,358 1,007,375
--------------------------------------------------
Cash and Cash Equivalents at End of Period 0 1,007,375 1,007,375 2,277,256
==================================================
<CAPTION>
TOTAL TOTAL
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
2/28/98 3/31/98
----------------------------------------------
<S> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (1,023,579) (669,349)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 473,449 480,892
Decrease (Increase)-Accounts Receivable (535,504) (571,063)
Decrease (Increase)-Inventories 28,299 (249,222)
Decrease (Increase)-Prepaid Expenses 16,303 21,400
Decrease (Increase)-Other Assets (2,194) (2,326)
Increase (Decrease)-Pre Petition Liabilities (1,979,714) (9,225)
Increase (Decrease)-Deferred revenue 7,780 (1)
Increase (Decrease)-Post Petition Liabilities 2,173,536 1,302,470
----------------------------------------------
Net Cash Provided (Used) by Operating Activities (841,624) 303,576 0 0
----------------------------------------------
Cash Flows Used in Investing Activities
Capital Expenditures (357,999) (168,558)
Sale of Net Fixed Assets
----------------------------------------------
Net Cash Provided (Used) in Investing Activities (357,999) (168,558) 0 0
----------------------------------------------
Cash Flows From Financing Activities:
Increase (Decrease)-Morgens Waterfall 0 0
Increase (Decrease)-Shareholder Valuations 0 0
Purchase of Treasury Stock-Preferred Shares
----------------------------------------------
Net Cash Provided (Used) in Financing Activities 0 0 0 0
----------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,199,623) 135,018 0 0
Cash and Cash Equivalents at Beginning of Period 2,277,256 1,077,633 1,212,651 1,212,651
----------------------------------------------
Cash and Cash Equivalents at End of Period 1,077,633 1,212,651 1,212,651 1,212,651
==============================================
</TABLE>
<PAGE> 9
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
MONTH ENDED: 3/31/98
-------
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and
paid.
<TABLE>
<CAPTION>
Name and Title of Date Wages Paid Taxes Withheld
Executive Paid Gross Net Due Paid
------------------- ------------------------------------------------------
<S> <C> <C> <C> <C> <C>
THE FOLLOWING OFFICERS OF THIS DEBTOR ARE EMPLOYEES AND OFFICERS OF MOLTEN METAL TECHNOLOGY, INC. ("MMT").
THESE OFFICERS DO NOT RECEIVE COMPENSATION FROM THIS DEBTOR, BUT ARE COMPENSATED MMT, WHICH
HAS DISCLOSED SUCH COMPENSATION IN ITS MONTHLY OPERATING REPORT (CASE NUMBER 97-21385-CJK).
F. Gordon Bitter, CEO & CFO, Director
Ethan E. Jacks, VP, General Counsel, Secretary
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
===========================================
</TABLE>
2. INSURANCE
Is Workers' Compensation and other insurance in effect? Yes
---------
Are payments current? Yes
---------
If any policy has lapsed, been replaced or renewed, state so in the
schedule below. Attach a copy of the new policy's binder or coverage
page.
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- ------------------------------------------------------------------------------
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
PAGE 2
3. BANK ACCOUNTS
TENNESSEE TENNESSEE TENNESSEE
<PAGE> 10
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MMT OF TENNESSEE, INC.
CASE NUMBER: 97-21386-CJK
<TABLE>
<CAPTION>
OPERATING PAYROLL PAYROLL TOTAL TOTAL
----------- ----------- ------------ ----------- --------
<S> <C> <C> <C> <C> <C>
Bank Name U.S. TRUST U.S. TRUST NATIONSBANK
Account Number 110937851 1100937869 3001270846
BEGINNING BOOK BALANCE 1,043,692 33,941 1,077,633
PLUS: Deposits-Collections of A/R 2,461,748 2,461,748
Other Receipts
Loan Advances
LESS: Disbursements
Payroll (276,452) (33,941) (395,599) (705,992)
Returned Checks
Loan Repayments 0
OTHER: Adjustments 0
Transfers In (Out) (2,033,838) 413,100 (1,620,738)
----------- ----------- ------------ -----------
ENDING BOOK BALANCE 1,195,150 0 17,501 1,212,651
=========== =========== ============ ===========
</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> 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
MONTHLY OPERATING REPORT FOR MONTH ENDING: 3/31/98
COMES NOW, MMT FEDERAL HOLDINGS, INC. , Debtor in Possession, and hereby its
Monthly Operating Report for the period commencing 3/1/98 and ending 3/31/98 as
shown by the report and exhibits consisting of 10 pages and containing the
following, as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
---------------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
---------------
X Summary of Accounts Receivable (Form OPR-3)
---------------
X Schedule of Post-Petition Liabilities (Form OPR-4)
---------------
X Income Statement (Form OPR-5)
---------------
X Statement of Sources and Uses of Cash (Form OPR-6)
---------------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 4/29/98 DEBTOR-IN-POSSESSION
----------
By:
/s/ F. GORDON BITTER
--------------------------------
Name & Title: F. Gordon Bitter, Vice President
MMT Federal Holdings, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
IN RE: MMT FEDERAL HOLDINGS, INC. CASE NO.: 97-21387-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical
accounting practices, this operating
report accounts for all cash transfers
among the Debtor and its affiliates and
allocates some, but not all, of the
expenses borne by one affiliate for the
benefit of another or the others. In the
absence of a decision for substantive
consolidation, the Debtor will develop an
appropriate allocation of expenses
among the affiliated entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS
FORM OPR-1
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED:3/31/98
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
-------------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cash 500 500 500 500 500
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other
Inventory, at cost
Prepaid expenses
Deposits
Other:
Stock & interests in:
M4 Environmental Management, Inc.(100%) Unknown Unknown Unknown Unknown Unknown
Lockheed Martin Chemical Unknown Unknown Unknown Unknown Unknown
Demilitarization LLC (50% owned,
50% owned by Lockheed Martin)
-------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 500 500 500 500 500 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 500 500 500 500 500 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:3/31/98
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
----------------------------------------------------------------------------
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
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 10 10 10 10 10
Paid in Capital 990 990 990 990 990
Valuation Allowance (500) (500) (500) (500) (500)
Dividends Paid
Treasury Stock
Deferred Compensation
Retained Earnings
Through Filing Date
Post Filing Date
----------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 500 500 500 500 500 0 0 0
----------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 500 500 500 500 500 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:3/31/98
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF FILING: 12/3/97 0
Allowance for doubtful accounts 0
======================================================
0 0 0 0 0
======================================================
MONTH: 12/31/97 0
Allowance for doubtful accounts 0
======================================================
0 0 0 0 0
======================================================
MONTH: 1/31/98 0
Allowance for doubtful accounts 0
======================================================
0 0 0 0 0
======================================================
MONTH: 2/28/98 0
Allowance for doubtful accounts 0
======================================================
0 0 0 0 0
======================================================
MONTH: 3/31/98 0
Allowance for doubtful accounts 0
======================================================
0 0 0 0 0
======================================================
MONTH: 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:3/31/98
<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> <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: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED:3/31/98
<TABLE>
<CAPTION>
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
-----------------------------------------------------------------------------------
NET REVENUE (INCOME)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages
capitalized in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
-----------------------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------
INTEREST EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-----------------------------------------------------------------------------------
NET INCOME (LOSS) NONE NONE NONE NONE NONE 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:3/31/98
<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 3/31/98
----------------------------------------------------------------------------------
CASH FLOWS-OPERATING ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Earnings (Loss) NONE NONE NONE NONE NONE
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 0 0 0 0 0
Decrease (Increase)-Accounts Receivable 0 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0 0
Increase (Decrease)-Pre Petition Liabilities 0 0 0 0 0
Increase (Decrease)-Post Petition Liabilities 0 0 0 0 0
----------------------------------------------------------------------------------
Net Cash Provided (Used) by Operating Activities 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------
Cash Flows Used in Investing Activities
Capital Expenditures 0 0 0 0 0
Sale of Net Fixed Assets
----------------------------------------------------------------------------------
Net Cash Provided (Used) in Investing Activities 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------
Cash Flows From Financing Activities:
Increase (Decrease)-Morgens Waterfall 0 0 0 0 0
Increase (Decrease)-Shareholder Valuations 0 0 0 0 0
Purchase of Treasury Stock-Preferred Shares
----------------------------------------------------------------------------------
Net Cash Provided (Used) in Financing Activities 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------
Net Increase (Decrease) in Cash and Clash 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 QUESTIONNAIRE
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
MONTH ENDED:3/31/98
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and
paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
--------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
THE FOLLOWING OFFICERS OF THIS DEBTOR ARE EMPLOYEES AND OFFICERS OF MOLTEN METAL TECHNOLOGY, INC. ("MMT").
THESE OFFICERS DO NOT RECEIVE COMPENSATION FROM THIS DEBTOR, BUT ARE COMPENSATED MMT, WHICH
HAS DISCLOSED SUCH COMPENSATION IN ITS MONTHLY OPERATING REPORT (CASE NUMBER 97-21385-CJK).
F. Gordon Bitter, CEO & CFO, Director
Ethan E. Jacks, VP, General Counsel, Secretary
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.
</TABLE>
<TABLE>
<CAPTION>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
</TABLE>
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: MMT FEDERAL HOLDINGS, INC.
CASE NUMBER: 97-21387-CJK
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
MMT FED
OPERATING TOTAL
---------------------------------
<S> <C> <C>
BANK NAME U.S. TRUST
ACCOUNT NUMBER 002239244-1
BEGINNING BOOK BALANCE 500 500
PLUS: Deposits-Collections of A/R
Other Receipts
Loan Advances
LESS: Disbursements
Payroll
Returned Checks
Loan Repayments
OTHER: Adjustments
Transfers In (Out)
---------- ------------
ENDING BOOK BALANCE 500 500
========== ============
</TABLE>
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professional and payments on
Pre-petition debts in the schedule below.
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
--------------------- ---------------------------------
<S> <C> <C> <C>
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
NONE
============
0
============
PRE-PETITION DEBTS
NONE
============
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
============
</TABLE>
<PAGE> 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: 3/31/98
--------------
COMES NOW, M4 ENVIRONMENTAL MANAGEMENT, INC., Debtor in Possession, and hereby
its Monthly Operating Report for the period commencing 3/1/98 and ending 3/31/98
as shown by the report and exhibits consisting of 10 pages and containing the
following, as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
--------------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
--------------
X Summary of Accounts Receivable (Form OPR-3)
--------------
X Schedule of Post-Petition Liabilities (Form OPR-4)
--------------
X Income Statement (Form OPR-5)
--------------
X Statement of Sources and Uses of Cash (Form OPR-6)
--------------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
Date: 4/29/98 DEBTOR-IN-POSSESSION
-------------
By:
/s/ F. Gordon Bitter
------------------------------------
Name & Title: F. Gordon Bitter, Vice President
M4 Environmental Management, Inc.
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
<PAGE> 2
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MASSACUSETTS
IN RE: M4 ENVIRONMENTAL MANAGEMENT, INC. CASE NO.: 97-21388-CJK
DEBTOR JUDGE: CAROL J. KENNER
CHAPTER 11
NOTE TO THE MONTHLY OPERATING REPORT:
Consistent with the Debtor's historical accounting practices, this
operating report accounts for all cash transfers among the Debtor and its
affiliates and allocates some, but not all, of the expenses borne by one
affiliate for the benefit of another or the others. In the absence of a decision
for substantive consolidation, the Debtor will develop an appropriate allocation
of expenses among the affiliated entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 3/31/98
-----------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other
Inventory, at cost
Prepaid expenses
Deposits
Other:
Stock & interests in:
M4 Environmental, LP (1% ownership, Unknown Unknown Unknown Unknown Unknown
Unknown 99% owned by MMT Federal
Holdings, Inc.)
-------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
-------------------------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 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: 3/31/98
-----------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
----------------------------------------------------------------------------------------
<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 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: 3/31/98
--------------
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF FILING: 12/3/97 0
Allowance for doubtful accounts 0
===================================================================
0 0 0 0 0
===================================================================
MONTH: 12/31/97
Allowance for doubtful accounts 0
===================================================================
0 0 0 0 0
===================================================================
MONTH: 1/31/98 0
Allowance for doubtful accounts 0
===================================================================
0 0 0 0 0
===================================================================
MONTH: 2/28/98 0
Allowance for doubtful accounts 0
===================================================================
0 0 0 0 0
===================================================================
MONTH: 3/31/98 0
Allowance for doubtful accounts 0
===================================================================
0 0 0 0 0
===================================================================
MONTH: 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: 3/31/98
--------------
<TABLE>
<CAPTION>
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
-----------------------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
- ------------------- -----------------------------------------------------------
POST PETITION SECURED DEBT
- --------------------------
DIP FINANCING
ACCRUED INTEREST PAYABLE
-----------------------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0 0 0
- -------------------------------- -----------------------------------------------------------
POST PETITION UNSECURED DEBT
- ----------------------------
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached
schedules)
Payroll withholdings
Accrued Payroll
Accrued expenses
-----------------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 0 0 0 0 0
-----------------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 0 0 0 0 0
===========================================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 3/31/98
--------------
<TABLE>
<CAPTION>
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET REVENUE (INCOME)
-----------------------------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages
capitalized in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary
wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
-----------------------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------
INTEREST EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
-----------------------------------------------------------------------------------
NET INCOME (LOSS) NONE NONE NONE NONE NONE 0 0 0 0
===================================================================================
</TABLE>
<PAGE> 8
FORM OPR-6
STATEMENT OF SOURCES AND USES OF CASH
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 3/31/98
--------------
<TABLE>
<CAPTION>
TOTAL TOTAL TOTAL TOTAL
PRE POST MONTH MONTH MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98 3/31/98
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) NONE NONE NONE NONE NONE
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 0 0 0 0 0
Decrease (Increase)-Accounts Receivable 0 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0 0
Increase (Decrease)-Pre Petition
Liabilities 0 0 0 0 0
Increase (Decrease)-Post Petition 0 0 0 0 0
Liabilities 0 0 0 0 0
----------------------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures 0 0 0 0 0
Sale of Net Fixed Assets
----------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 0 0 0 0
Increase (Decrease)-Shareholder
Valuations 0 0 0 0 0
Purchase of Treasury Stock-Preferred
Shares
----------------------------------------------------------------------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 0 0 0 0 0 0 0 0
Cash and Cash Equivalents at Beginning of Period 0 0 0 0 0 0 0
----------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 0 0 0 0 0 0 0
==================================================================================
</TABLE>
<PAGE> 9
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 3/31/98
----------
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and
paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
--------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C>
THE FOLLOWING OFFICERS OF THIS DEBTOR ARE EMPLOYEES AND OFFICERS OF MOLTEN METAL TECHNOLOGY, INC. ("MMT").
THESE OFFICERS DO NOT RECEIVE COMPENSATION FROM THIS DEBTOR, BUT ARE COMPENSATED MMT, WHICH
HAS DISCLOSED SUCH COMPENSATION IN ITS MONTHLY OPERATING REPORT (CASE NUMBER 97-21385-CJK).
F. Gordon Bitter, CEO & CFO, Director
Ethan E. Jacks, VP, General Counsel, Secretary
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.
</TABLE>
<TABLE>
<CAPTION>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
</TABLE>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
<PAGE> 10
CHAPTER 11 ATTACHMENT 1
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL MANAGEMENT, INC.
CASE NUMBER: 97-21388-CJK
MONTH ENDED: 3/31/98
----------
PAGE 2
3. BANK ACCOUNTS
<TABLE>
<CAPTION>
TOTAL
------------
<S> <C>
BANK NAME
ACCOUNT NUMBER
BEGINNING BOOK BALANCE 0
PLUS: Deposits-Collections of A/R
Other Receipts
Loan Advances
LESS: Disbursements
Payroll
Returned Checks
Loan Repayments
OTHER: Adjustments
Transfers In (Out)
------------
ENDING BOOK BALANCE 0
============
</TABLE>
4. POST PETITION PAYMENTS TO PROFESSIONALS AND ON PRE PETITION DEBTS
List any post petition payments to professional and payments on
Pre-petition debts in the schedule below.
<TABLE>
<CAPTION>
Payments To/On Amount Date Check #
--------------------- ---------------------------------
<S> <C> <C> <C>
PROFESSIONALS (ATTORNEYS,
ACCOUNTANTS, ETC.):
NONE
===========
0
===========
PRE-PETITION DEBTS
NONE
===========
TOTAL PAYMENTS OF PRE-PETITION DEBTS 0
===========
</TABLE>
<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
MONTHLY OPERATING REPORT FOR MONTH ENDING: 3/31/98
-------
COMES NOW, M4 ENVIRONMENTAL, LP , Debtor in Possession, and hereby its Monthly
Operating Report for the period commencing 3/1/98 and ending 3/31/98 as shown by
the report and exhibits consisting of 10 pages and containing the following, as
indicated:
X Monthly Reporting Questionnaire (Attachment 1)
---------------
X Comparative Balance Sheets (Forms OPR-1 and OPR-2)
---------------
X Summary of Accounts Receivable (Form OPR-3)
---------------
X Schedule of Post-Petition Liabilities (Form OPR-4)
---------------
X Income Statement (Form OPR-5)
---------------
X Statement of Sources and Uses of Cash (Form OPR-6)
---------------
I declare under penalty of perjury that this report and all attachments are true
and correct to the best of my knowledge and belief.
<TABLE>
<S> <C>
Date: 4/29/98 DEBTOR-IN-POSSESSION
---------------
By: /s/ F. GORDON BITTER
------------------------------------------------------
Name & Title: F. Gordon Bitter, Vice President
M4 Environmental Management, Inc.
as General Partner of M4 Environmental LP
421 Currant Road
Fall River, MA 02720
Telephone: 508-324-6497
</TABLE>
<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 expenses
among the affiliated entities.
<PAGE> 3
COMPARATIVE BALANCE SHEETS FORM OPR-1
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NO.: 97-21389-CJK
MONTH ENDED: 3/31/98
-------
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH MONTH
DATE ENDED ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash 53,265
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other 2,294,613 2,294,613 2,294,613 2,294,613 2,294,613
Inventory, at cost
Prepaid expenses
Deposits
Other:
Investment in CW LLC 1,497,718 1,497,718 1,497,718 1,497,718 1,497,718
Long Term Notes Receivable from
Lockheed Martin 19,000,000 19,000,000 19,000,000 19,000,000 19,000,000
---------------------------------------------------------------------------
TOTAL CURRENT ASSETS 22,845,596 22,792,331 22,792,331 22,792,331 22,792,331
---------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST 10,653,977 10,653,977 10,653,977 10,653,977 10,653,977
Less: Accumulated Depreciation (580,281) (710,532) (828,954) (947,376) (1,065,798)
---------------------------------------------------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 10,073,696 9,943,445 9,825,023 9,706,601 9,588,179
---------------------------------------------------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 2,414,005 2,414,005 2,414,005 2,414,005 2,414,005
Less: Accumulated Amortization (102,512) (120,443) (138,373) (156,304) (174,235)
---------------------------------------------------------------------------
TOTAL OTHER ASSETS 2,311,493 2,293,562 2,275,632 2,257,701 2,239,770
---------------------------------------------------------------------------
TOTAL ASSETS 35,230,785 35,029,338 34,892,986 34,756,633 34,620,280
===========================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH
ENDED ENDED ENDED
----------------------------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash
Other negotiable instruments (i.e. CD's,
Treasury Bills, Etc.)
Accounts Receivable-Trade, Net (OPR-3)
Less: allowance for doubtful accounts
Accounts Receivable-Other
Inventory, at cost
Prepaid expenses
Deposits
Other:
Investment in CW LLC
Long Term Notes Receivable from
Lockheed Martin
----------------------------------
TOTAL CURRENT ASSETS 0 0 0
----------------------------------
PROPERTY, PLANT AND EQUIPMENT, AT COST
Less: Accumulated Depreciation
----------------------------------
NET PROPERTY, PLANT AND EQUIPMENT 0 0 0
----------------------------------
OTHER ASSETS (ITEMIZED IF VALUE EXCEEDS
10% OF "TOTAL ASSETS")
Intangible Assets 0
Less: Accumulated Amortization
----------------------------------
TOTAL OTHER ASSETS 0 0 0
----------------------------------
TOTAL ASSETS 0 0 0
==================================
</TABLE>
<PAGE> 4
COMPARATIVE BALANCE SHEETS FORM OPR-2
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
FILING MONTH MONTH MONTH
DATE ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations (25,762) 63,760 63,760
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 34,057 8,294 8,294
-------------------------------------------------------------------------
TOTAL POST PETITION LIABILITIES 0 8,295 72,054 72,054
PRE PETITION INTERCOMPANY LIABILITIES 35,906,310 35,906,310 35,906,310 35,906,310
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES 40,969,552 40,907,477 40,843,718 40,843,718
-------------------------------------------------------------------------
TOTAL LIABILITIES 76,875,862 76,822,082 76,822,082 76,822,082
PARTNERSHIP EQUITY (DEFICIT)
Retained Earnings
Through Filing Date (41,645,077) (41,645,077) (41,645,077) (41,645,077)
Post Filing Date (147,667) (284,019) (420,372)
-------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (41,645,077) (41,792,744) (41,929,096) (42,065,449)
-------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 35,230,785 35,029,338 34,892,986 34,756,633
=========================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
3/31/98
----------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES
POST PETITION LIABILITIES
Secured Debt (See Form OPR-4)
Unsecured Debt-Intercompany Obligations due to cash
transfers in Post Petition Operations 64,065
Unsecured Debt-Obligations incurred in Post Petition
Operations (See Form OPR-4) 8,294
----------------------------------------------------------
TOTAL POST PETITION LIABILITIES 72,359 0 0 0
PRE PETITION INTERCOMPANY LIABILITIES 35,906,310
DEFERRED REVENUE/DEFERRED INCOME
TOTAL OTHER PRE PETITION LIABILITIES 40,844,824
----------------------------------------------------------
TOTAL LIABILITIES 76,823,493 0 0 0
PARTNERSHIP EQUITY (DEFICIT)
Retained Earnings
Through Filing Date (41,645,077)
Post Filing Date (558,136)
----------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (42,203,213) 0 0 0
----------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 34,620,280 0 0 0
==========================================================
</TABLE>
<PAGE> 5
SUMMARY OF ACCOUNTS RECEIVABLE FORM OPR-3
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
0-30 31-60 61-90 OVER
TOTAL DAYS DAYS DAYS 90 DAYS
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DATE OF FILING: 12/3/97 0
Allowance for doubtful accounts 0
-------------------------------------------------------------------
0 0 0 0 0
===================================================================
MONTH: 12/31/97 0
Allowance for doubtful accounts 0
-------------------------------------------------------------------
0 0 0 0 0
===================================================================
MONTH: 1/31/98 0
Allowance for doubtful accounts 0
-------------------------------------------------------------------
0 0 0 0 0
===================================================================
MONTH: 2/28/98 0
Allowance for doubtful accounts 0
-------------------------------------------------------------------
0 0 0 0 0
===================================================================
MONTH: 3/31/98 0
Allowance for doubtful accounts 0
-------------------------------------------------------------------
0 0 0 0 0
===================================================================
MONTH: 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, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
DATE DATE TOTAL 0-30 31-60 61-90 OVER
INCURRED DUE DUE DAYS DAYS DAYS 90 DAYS
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TAXES PAYABLE
Federal Income Taxes NONE
FICA-Employer's Share NONE
FICA-Employee's Share NONE
Unemployment Tax NONE
State Sales & Use Tax NONE
State __________ Tax NONE
Personal Property Tax NONE
------------------------------------------------------
TOTAL TAXES PAYABLE 0 0 0 0 0
------------------------------------------------------
POST PETITION SECURED DEBT
ACCRUED INTEREST PAYABLE
------------------------------------------------------
TOTAL POST PETITION SECURED DEBT 0 0 0 0 0
------------------------------------------------------
POST PETITION UNSECURED DEBT
TRADE ACCOUNTS PAYABLE & OTHER:
Trade Accounts Payable (see attached schedules)
Unsecured debt-Bank processed automatic funds
transfer debit to pay bond interest on December 1
against insufficient funds balance.
This created an overdraft of $8,294 and an
unsecured debt obligation to the bank. 8,294
Accrued expenses-Deferred Decontamination
& Decommissioning Expenses 0
------------------------------------------------------
TOTAL TRADE ACCOUNTS PAYABLE & OTHER 8,294 0 0 0 0
------------------------------------------------------
TOTAL ALL POST PETITION LIABILITIES 8,294 0 0 0 0
======================================================
</TABLE>
<PAGE> 7
INCOME STATEMENT FORM OPR-5
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 3/31/98
<TABLE>
<CAPTION>
PRE POST MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED
12/3/97 12/31/97 1/31/98 2/28/98 3/31/98
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET REVENUE (INCOME)
--------------------------------------------------------------
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages
capitalized in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes 1,411
Telephone
Transportation
Travel & entertainment
Utilities
--------------------------------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0 1,411
--------------------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0 (1,411)
--------------------------------------------------------------
INTEREST EXPENSE (515)
DEPRECIATION AND AMORTIZATION 148,182 136,352 136,353 136,353
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
--------------------------------------------------------------
NET INCOME (LOSS) 0 (147,667) (136,352) (136,353) (137,764)
==============================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH MONTH MONTH
ENDED ENDED ENDED ENDED
--------------------------------------------------
<S> <C> <C> <C> <C>
NET REVENUE (INCOME)
--------------------------------------------------
COST OF GOODS SOLD
Salaries & wages
Less: Salaries & wages
capitalized in fixed assets
Benefits
Bad debt expense
Cost of goods sold
Decontamination & disposal
Disposal costs-secondary wastes
Financing costs
Insurance
Legal services
Materials
Office expense & supplies
Other
Outside services
Professional services
Rent-equipment
Rent-office/buildings
Supplies-processing
Taxes
Telephone
Transportation
Travel & entertainment
Utilities
--------------------------------------------------
TOTAL COST OF GOODS SOLD 0 0 0 0
--------------------------------------------------
INCOME BEFORE INTEREST, DEPRECIATION,
TAXES, OR EXTRAORDINARY EXPENSES 0 0 0 0
--------------------------------------------------
INTEREST EXPENSE
DEPRECIATION AND AMORTIZATION
INCOME TAX EXPENSE (BENEFIT)
REORGANIZATION EXPENSE
OTHER (INCOME) EXPENSE
(GAIN) LOSS ON SALE OF ASSETS
--------------------------------------------------
NET INCOME (LOSS) 0 0 0 0
==================================================
</TABLE>
<PAGE> 8
STATEMENT OF SOURCES AND USES OF CASH FORM OPR-6
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NO.: 97-21389-CJK
MONTH ENDED: 3/31/98
-------
<TABLE>
<CAPTION>
TOTAL
PRE POST MONTH MONTH MONTH MONTH
PETITION PETITION ENDED ENDED ENDED ENDED
12/1-12/2 12/3-12/31 12/31/97 1/31/98 2/28/98 3/31/98
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss) (147,667) (147,667) (136,352) (136,353) (137,764)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization 148,182 148,182 136,352 136,353 136,353
Decrease (Increase)-Accounts Receivable 0 0 0 0 0
Decrease (Increase)-Inventories 0 0 0 0 0
Decrease (Increase)-Prepaid Expenses 0 0 0 0 0
Decrease (Increase)-Other Assets 0 0 0 0 0
Increase (Decrease)-Pre Petition Liabilities (62,075) (62,075) (63,759) 0 1,106
Increase (Decrease)-Post Petition Liabilities 8,295 8,295 63,759 0 305
--------------------------------------------------------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 (53,265) (53,265) 0 0 0
--------------------------------------------------------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures 0 0 0 0 0
Sale of Net Fixed Assets
--------------------------------------------------------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 0 0 0 0 0
--------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall 0 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
--------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 (53,265) (53,265) 0 0 0
Cash and Cash Equivalents at Beginning of Period 53,265 53,265 0 0 0
--------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 0 0 0 0 0 0
====================================================================
</TABLE>
<TABLE>
<CAPTION>
MONTH MONTH
ENDED ENDED
---------------------
<S> <C> <C>
CASH FLOWS-OPERATING ACTIVITIES:
Net Earnings (Loss)
Adjustments to Reconcile Net Earnings to
Net Cash Provided (Used) by Operating Activities:
Depreciation & Amortization
Decrease (Increase)-Accounts Receivable
Decrease (Increase)-Inventories
Decrease (Increase)-Prepaid Expenses
Decrease (Increase)-Other Assets
Increase (Decrease)-Pre Petition Liabilities
Increase (Decrease)-Post Petition Liabilities
---------------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 0
---------------------
CASH FLOWS USED IN INVESTING ACTIVITIES
Capital Expenditures
Sale of Net Fixed Assets
---------------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES 0 0
---------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease)-Morgens Waterfall
Increase (Decrease)-Shareholder Valuations
Purchase of Treasury Stock-Preferred Shares
---------------------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 0 0
---------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 0 0
Cash and Cash Equivalents at Beginning of Period 0 0
---------------------
Cash and Cash Equivalents at End of Period 0 0
=====================
</TABLE>
<PAGE> 9
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
MONTH ENDED: 3/31/98
--------------------
PAGE 1
1. PAYROLL
State the amount of all executive wages paid and taxes withheld and
paid.
<TABLE>
<CAPTION>
NAME AND TITLE OF DATE WAGES PAID TAXES WITHHELD
EXECUTIVE PAID GROSS NET DUE PAID
------------------------------------- ------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NONE
-----------------------------------------------------
TOTAL EXECUTIVE PAYROLL 0 0 0 0
=====================================================
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>
<TABLE>
<CAPTION>
DATE
COVERAGE POLICY EXPIRATION PREMIUM COVERAGE
TYPE CARRIER NAME AMOUNT NUMBER DATE AMOUNT PAID THRU
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
</TABLE>
SEE ATTACHED INSURANCE EXPIRATION CERTIFICATE
<PAGE> 10
ATTACHMENT 1
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
PAGE 2
CASE NAME: M4 ENVIRONMENTAL, LP
CASE NUMBER: 97-21389-CJK
<TABLE>
<CAPTION>
3. BANK ACCOUNTS
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>
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