TCR_Public/040814.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

            Saturday, August 14, 2004, Vol. 8, No. 171

                          Headlines


AIR CANADA: Reports Higher July 2004 Traffic Results
AVALON DIGITAL: Files Feb. to June 2004 Monthly Operating Reports
COVANTA ENERGY: Reports $13 Million Net Income in June 2004
ENRON CORP: Wind Trust's June 2004 Monthly Cash Report
EXIDE TECH: Posts $1.7 Billion Combined 2nd Quarter Net Income

HAYES LEMMERZ: Creditor Trust Releases 2nd Quarter 2004 Results
INSILCO HOLDING: Reports $13.2 Million in Assets at June 30
MARINER: Reports $3.3 Million Second Quarter 2004 Net Income
MIRANT CORP: Reports $32 Million Net Income for Second Quarter
PACIFIC GAS: PG&E Reports $412 Million 2nd Quarter Net Income

SK GLOBAL: SK Corp. Releases First Half of 2004 Financial Results
SOLUTIA INC: Reports $19 Million Net Loss in June 2004
SOLUTIA INC: Second Quarter Net Loss Tops $98 Million
UNITED AIRLINES: Reports Highest-Ever July Load Factor
USG CORPORATION: Reports $21.7 Million Earnings in June 2004

W.R. GRACE: Submits Amended First Quarter 2004 Financial Results
W.R. GRACE: Submits Amended Second Quarter 2004 Financial Results
W.R. GRACE: Reports Amended 4th Qtr. & Year-End Financial Results
WESTPOINT STEVENS: 2nd Quarter Net Loss Narrows to $24 Million
WESTPOINT STEVENS: Reports $14.2 Million Net Loss in June 2004

WESTPOINT STEVENS: JP Stevens & Co.'s June 2004 Operating Report
WESTPOINT STEVENS: JP Stevens Enterprises' June Operating Report
WESTPOINT STEVENS: WP Stevens I Posts $3.2 Million Income in May
WESTPOINT STEVENS: WP Stevens Stores' June 2004 Operating Report


                            *********


AIR CANADA: Reports Higher July 2004 Traffic Results
----------------------------------------------------
Air Canada mainline flew 12.8 per cent more revenue passenger
miles (RPMs) in July 2004 than in July 2003, according to
preliminary traffic figures. Overall, capacity increased by 9.5
per cent, resulting in a load factor of 80.4 per cent, compared to
78.1 per cent in July 2003; an increase of 2.3 percentage points.  
In the domestic market, capacity decreased by 4.5 per cent while
traffic was flat resulting in a domestic load factor of 78.2 per
cent - a 3.5 percentage point increase year over year.

Jazz, Air Canada's regional airline subsidiary, flew 7.5 per
cent more revenue passenger miles in July 2004 than in July 2003,
according to preliminary traffic figures.  Capacity increased by
0.4 per cent, resulting in a load factor of 66.7 per cent,
compared to 62.3 per cent in July 2003; an increase of 4.4
percentage points.

"A continuing recovery of traffic combined with disciplined
capacity management resulted in a fourth consecutive month of
record system load factors in July," said Rob Peterson, Executive
Vice President and Chief Financial Officer.  "Yields on the
domestic and international services continued to rebound strongly
from the depressed 2003 levels.  Within Canada we tightened
capacity on all routes, while on the Atlantic we added
frequencies on the strong London and Paris services. The sharp
increase in Pacific capacity reflected the reinstatement of SARS
related 2003 reductions while new Latin American and sun
destinations drove up the capacity in the 'other and charter'
category."

                         AIR CANADA MAINLINE
                    (Includes Tango, Zip & Jetz)

                                               JULY
                              -----------------------------------
                                 2004        2003       Change
                              ----------  ----------  -----------
Traffic (RPMs millions)          4,259       3,775      +12.8%
Capacity (ASMs millions)         5,294       4,833       +9.5%
                              ----------  ----------  -----------
     Load Factor                 80.4%       78.1%       +2.3 pts
                              ==========  ==========  ===========

Canada RPMs                      1,312       1,312        0.0%
        ASMs                     1,678       1,757       -4.5%
                              ----------  ----------  -----------
     Load Factor                 78.2%       74.7%       +3.5 pts
                              ==========  ==========  ===========

U.S. Trans-border RPMs            550         546        +0.7%
                   ASMs           752         740        +1.6%
                              ----------  ----------  -----------
     Load Factor                 73.1%       73.8%       -0.7 pts
                              ==========  ==========  ===========

Atlantic RPMs                    1,343       1,340       +0.2%
          ASMs                   1,599       1,628       -1.8%
                              ----------  ----------  -----------
     Load Factor                 84.0%       82.3%       +1.7 pts
                              ==========  ==========  ===========

Pacific RPMs                      783        369       +112.2%
         ASMs                     934        446       +109.4%
                              ----------  ----------  -----------
     Load Factor                 83.8%       82.7%       +1.1 pts
                              ==========  ==========  ===========

Other & Charter RPMs              271         208       +30.3%
                 ASMs             331         262       +26.3%
                              ----------  ----------  -----------
     Load Factor                 81.9%       79.4%       +2.5 pts
                              ==========  ==========  ===========


                         AIR CANADA MAINLINE
                    (Includes Tango, Zip & Jetz)

                                          YEAR-TO-DATE
                              -----------------------------------
                                 2004        2003       Change
                              ----------  ----------  -----------
Traffic (RPMs millions)         24,290      21,614      +12.4%
Capacity (ASMs millions)        31,605      29,348       +7.7%
                              ----------  ----------  -----------
     Load Factor                 76.9%       73.6%       +3.3 pts
                              ==========  ==========  ===========

Canada RPMs                      7,283       6,794       +7.2%
        ASMs                     9,571       9,505       +0.7%
                              ----------  ----------  -----------
     Load Factor                  76.1%       71.5%      +4.6 pts
                              ==========  ==========  ===========

U.S. Trans-border RPMs           3,920       4,126       -5.0%
                   ASMs          5,730       6,186       -7.4%
                              ----------  ----------  -----------
     Load Factor                 68.4%       66.7%       +1.7 pts
                              ==========  ==========  ===========

Atlantic RPMs                    6,194       6,432       -3.7%
          ASMs                   7,569       7,921       -4.4%
                              ----------  ----------  -----------
     Load Factor                 81.8%       81.2%       +0.6 pts
                              ==========  ==========  ===========

Pacific RPMs                     4,585       2,587      +77.2%
         ASMs                    5,679       3,536      +60.6%
                              ----------  ----------  -----------
     Load Factor                 80.7%       73.2%       +7.5 pts
                              ==========  ==========  ===========

Other & Charter RPMs             2,308       1,675      +37.8%
                 ASMs            3,056       2,200      +38.9%
                              ----------  ----------  -----------
     Load Factor                 75.5%       76.1%       -0.6 pts
                              ==========  ==========  ===========


                      AIR CANADA REGIONAL (Jazz)

                                               JULY
                              -----------------------------------
                                 2004        2003       Change
                              ----------  ----------  -----------
Traffic (RPMs millions)           158         147       +7.5%
Capacity (ASMs millions)          237         236       +0.4%
                              ----------  ----------  -----------
     Load Factor                  66.7%       62.3%      +4.4 pts
                              ==========  ==========  ===========


                      AIR CANADA REGIONAL (Jazz)

                                          YEAR-TO-DATE
                              -----------------------------------
                                 2004        2003       Change
                              ----------  ----------  -----------
Traffic (RPMs millions)            979         933       +4.9%
Capacity (ASMs millions)         1,580       1,546       +2.2%
                              ----------  ----------  -----------
     Load Factor                  62.0%       60.3%      +1.7 pts
                              ==========  ==========  ===========


AVALON DIGITAL: Files Feb. to June 2004 Monthly Operating Reports
-----------------------------------------------------------------
Avalon Digital Marketing Systems, Inc. filed its monthly operating
reports for February, March, April, May and June, 2004 with the
U.S. Bankruptcy Court this week.

The Debtor's Monthly Balance Sheets show:

                                    2 0 0 4
               --------------------------------------------------
               Feb. 29  March 31    Apr. 30    May 31     Jun. 30
               -------  --------    -------    -------    -------
Cur. Assets   423,608    343,278    162,872    141,489    137,114
Tot. Assets   837,157    724,983    516,995    468,254    436,748
Postpetition
Debt         638,402    717,389    612,736    643,161    650,387
Prepetition
Debt       9,571,862  9,510,212  9,495,081  9,437,391  9,430,295

Total
Equity    (9,373,107)(9,502,618)(9,590,822)(9,612,298)(9,643,934)
                                                                               

On September 5, 2003, Avalon Digital Marketing Systems, Inc., a  
Delaware corporation filed a voluntary petition for reorganization  
under Chapter 11 of the United States Bankruptcy Code in the U.S.  
Bankruptcy Court in Salt Lake City, Utah. The case has been  
assigned to Judge Glen E. Clark and the case is being administered  
under Case Number 03-35180.

Full-text copies of Avalon Digital's Monthly Operating Reports are
available at no charge at:

Month Ending June 30, 2004
   http://www.sec.gov/Archives/edgar/data/1095792/000009631304000190/avalondigitalexh991604.txt

Month Ending May 31, 2004
   http://www.sec.gov/Archives/edgar/data/1095792/000009631304000189/avalondigitalexh991504.txt

Month Ending April 30, 2004
   http://www.sec.gov/Archives/edgar/data/1095792/000009631304000186/avalondigitalexh991404.txt

Month Ending March 31, 2004
   http://www.sec.gov/Archives/edgar/data/1095792/000009631304000184/avalondigitalexh991304.txt

Month Ending February 29, 2004
   http://www.sec.gov/Archives/edgar/data/1095792/000009631304000182/avalondigitalexh991204.txt


COVANTA ENERGY: Reports $13 Million Net Income in June 2004
---------------------------------------------------------------

            Covanta Energy Corporation And Subsidiaries
                    Consolidated Balance Sheets
                          At June 30, 2004
                           (In Thousands)

                               ASSETS

Current Assets:

Cash and cash equivalents                               $62,673
Restricted funds for emergence costs                     45,568
Restricted funds held in trust                          113,349
Receivables - net                                       132,666
Unbilled services receivables                            50,839
Deferred income taxes                                     6,538
Prepaid expenses and other current assets                73,591
                                                      ----------
Total current assets                                    485,224

Property plant and equipment - net                      906,179
Restricted funds held in trust                          113,773
Other non-current receivables - net                      13,653
Unbilled services receivables                            98,260
Service and energy contracts - net                      197,669
Unamortized contract acquisition costs - net                  -
Goodwill and other intangibles                              992
Investments in and advances to investees                 73,075
Other assets                                             33,934
                                                      ----------
Total assets                                         $1,922,759
                                                      ==========

           LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Liabilities:

Current Liabilities:
Current portion of long-term debt                           $22
Current portion of project debt                         106,629
Accounts payable                                         16,953
Federal Income Tax Payable                                1,780
Accrued expenses                                        101,159
Accrued emergence costs                                  45,568
Deferred income                                          22,070
                                                     -----------
Total current liabilities                               294,181

Long-term debt                                          320,531
Project debt                                            838,748
Deferred income taxes                                   213,541
Deferred income                                               -
Other liabilities                                       111,140
Liabilities subject to compromise                             -
                                                      ----------
Total Liabilities                                     1,778,141

Minority interests                                       83,614
                                                      ----------
Shareholders' Equity (Deficit):
Successor Common stock                                        -
Predecessor preferred stock                                   -
Predecessor common stock                                      -
Capital surplus                                          47,525
Notes receivable from key employees                           -
Retained Earnings (Deficit)                              13,985
Accumulated other comprehensive loss                       (506)
                                                      ----------
Total Shareholders' Equity (Deficit)                     61,004
                                                      ----------
Total Liabilities and Shareholders' Equity           $1,922,759
                                                      ==========


      Covanta Energy Corporation And Subsidiaries -- Successor
                Consolidated Statement of Operations
              For the Three Months Ended June 30, 2004
                           (In Thousands)

Service revenues                                       $123,936
Electricity and steam sales                              55,739
Construction revenues                                       288
Other revenues-net                                           36
                                                      ----------
          Total revenues                                179,999
                                                      ----------

Plant operating expenses                                108,975
Construction costs                                          225
Depreciation and amortization                            16,904
Net interest on project debt                             10,701
Other operating costs and expenses                          616
Selling, general and administrative expenses             11,576
Other expense, net                                          (42)
                                                      ----------
          Total costs and expenses                      148,955
                                                      ----------
Operating income                                         31,044

Equity in income from unconsolidated investments          5,252
Interest expense - net                                  (10,001)
Reorganization items                                          -
                                                      ----------
Income (loss) from continuing operations before
income taxes and minority interests                      26,295

Income tax expense                                      (11,558)
Minority interests                                       (1,733)
                                                      ----------
Income (loss) from continuing operations before
discontinued operations                                  13,004

Gain from discontinued operations, net                        -
                                                      ----------
Net income                                              $13,004
                                                      ==========


     Covanta Energy Corporation And Subsidiaries -- Predecessor
                  Consolidated Cash Flow Statement
          For the period January 1 through March 10, 2004
                           (In Thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                                               $29,563

Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities
of Continuing Operations:
    Gain on cancellation of prepetition debt            (510,680)
    Fresh start adjustments                              214,927
    Fresh start tax adjustments                          214,756
    Loss (gain) from discontinued operations                   -
    Reorganization items                                  58,282
    Payment of reorganization items                      (49,782)
    Depreciation and amortization                         13,426
    Deferred income taxes                                     (7)
    Provision for doubtful accounts                          852
    Equity in income from unconsolidated investments      (4,817)
    Amortization of project debt premium & discount            -
    Accretion on principal of senior secured notes             -
    Cumulative effect of change in
      accounting principles, net                               -
    Other                                                  2,268

Management of Operating Assets and Liabilities:
    Decrease (Increase) in Assets:
       Receivables                                         5,406
       Restricted funds for emergence costs                    -
       Unbilled service receivables                            -
       Other assets                                      (17,705)
    Increase (Decrease) in Liabilities:
       Accounts payable                                    3,853
       Accrued expenses                                   17,730
       Accrued emergence costs                                 -
       Deferred income                                       229
       Other liabilities                                   1,437
                                                       ----------
Net cash provided by operating activities
of continuing operations                                 (20,262)
                                                       ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Proceeds from sale of businesses                          -
    Proceeds from sale of Property, Plant & Equipment        86
    Proceeds from sale of marketable securities
      available for sale                                     87
    Proceeds from sale of investment                          -
    Investments in facilities                            (4,192)
    Distributions from investees and joint ventures       6,401
    Increase in investments in and advances to
      investees and joint ventures                         (279)
    Other                                                      -
                                                      ----------
Net cash provided by investing activities
of continuing operations                                  2,103
                                                      ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Borrowings for facilities                                  -
    New borrowings                                             -
    Decrease(increase) in restricted
      funds held in trust                               (96,742)
    Payment of project debt                             (28,089)
    Paymen of recourse debt                             (80,507)
    Distributions to secured lenders and 9.25% holders   29,825
    Proceeds from issuance of stock                        (530)
    Distribution to minority partners                       175
    Proceeds from sale of minority interests                  -
                                                      ----------
Net cash used in financing activities
of continuing operations                               (175,868)
                                                      ----------
Net cash provided by discontinued operations                  -
                                                      ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS              (194,027)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD        260,902
                                                      ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD              $66,875
                                                      ==========


      Covanta Energy Corporation And Subsidiaries -- Successor
                  Consolidated Cash Flow Statement
           For the period March 11 through June 30, 2004
                           (In Thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                                              $13,985

Adjustments to Reconcile Net Income to Net Cash
Provided by (Used In) Operating Activities
of Continuing Operations:
    Gain on cancellation of prepetition debt                  -
    Fresh start adjustments                                   -
    Fresh start tax adjustments                               -
    Loss (gain) from discontinued operations                  -
    Reorganization items                                      -
    Payment of reorganization items                           -
    Depreciation and amortization                        20,399
    Deferred income taxes                                 5,568
    Provision for doubtful accounts                         768
    Equity in income from unconsolidated investments     (5,405)
    Amortization of project debt premium & discount      (4,152)
    Accretion on principal of senior secured notes        1,035
    Cumulative effect of change in
      accounting principles, net                              -
    Other                                                 2,838

Management of Operating Assets and Liabilities:
    Decrease (Increase) in Assets:
       Receivables                                        4,778
       Restricted funds for emergence costs              54,418
       Unbilled service receivables                       4,120
       Other assets                                       5,767
    Increase (Decrease) in Liabilities:
       Accounts payable                                  (6,618)
       Accrued expenses                                  (8,162)
       Accrued emergence costs                          (54,418)
       Deferred income                                   (5,412)
       Other liabilities                                 (4,709)
                                                      ----------
Net cash provided by (used in) operating
activities of continuing operations                      24,800
                                                      ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Proceeds from sale of businesses                          -
    Proceeds from sale of Property, Plant & Equipment        54
    Proceeds from sale of marketable securities
      available for sale                                      -
    Proceeds from sale of investment                          -
    Investments in facilities                            (4,867)
    Distributions from investees and joint ventures       6,996
    Increase in investments in and advances to
      investees and joint ventures                            -
    Other                                                 2,348
                                                      ----------
Net cash provided by (used in) investing
activities of continuing operations                       4,531
                                                      ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Borrowings for facilities                             1,208
    New borrowings                                            -
    Decrease (Increase) in restricted
      funds held in trust                               (18,525)
    Payment of project debt                              (5,866)
    Payment of recourse debt                             (8,554)
    Distributions to secured lenders and 9.25% holders        -
    Proceeds from issuance of stock                           -
    Distribution to minority partners                    (1,796)
    Proceeds from sale of minority interests                  -
                                                      ----------
Net cash used in financing activities
of continuing operations                                (33,533)
                                                      ----------
Net cash provided by discontinued operations                  -
                                                      ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS                (4,202)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD         66,875
                                                      ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD              $62,673
                                                      ==========

A full-text copy of Covanta's Form 10-Q Report is available for
free at:

   http://www.sec.gov/Archives/edgar/data/73902/000095013704006360/c87304e10vq.htm


Headquartered in Fairfield, New Jersey, Covanta Energy Corporation  
-- http://www.covantaenergy.com/-- is a publicly traded holding   
company whose subsidiaries develop, own or operate power  
generation facilities and water and wastewater facilities in the  
United States and abroad. The Company filed for Chapter 11  
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).   
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,  
Gottlieb, Steen & Hamilton represent the Debtors in their  
restructuring efforts.  When the Debtors filed for protection from  
its creditors, they listed $3,280,378,000 in assets and  
$3,031,462,000 in liabilities.


ENRON CORP: Wind Trust's June 2004 Monthly Cash Report
------------------------------------------------------

                        Wind Systems Trust  
        Combined Summary Report of Cash and Disbursements  
                For the Period June 1 to 30, 2004  
  
Beginning Cash Balance                     $41,077,175  
Total Cash Receipts                         27,316,170  
Total Cash Disbursements                   (27,128,168)  
                                            ----------  
Ending Cash Balance                        $41,265,177
                                            ==========  
  
  
                      ZWHC, LLC, Consolidated  
                  The Trust and its Subsidiaries  
        Combined Summary Report of Cash and Disbursements  
                For the Period June 1 to 30, 2004  
  
Beginning Cash Balance                      $7,246,721  
Total Cash Receipts                            389,467  
Total Cash Disbursements                      (422,197)  
                                            ----------  
Ending Cash Balance                         $7,213,991
                                             =========  
  
  
                      Wind Development Trust  
        Combined Summary Report of Cash and Disbursements  
                 For the Period June 1 to 30, 2004  
  
Beginning Cash Balance                     $19,788,800  
Total Cash Receipts                            574,442  
Total Cash Disbursements                      (538,935)  
                                            ----------  
Ending Cash Balance                        $19,824,307
                                            ==========    

Headquartered in Houston, Texas, Enron Corporation is in the midst
of restructuring various businesses for distribution as ongoing
companies to its creditors and liquidating its remaining
operations.  Before the company agreed to be acquired, controversy
over accounting procedures had caused Enron's stock price and
credit rating to drop sharply.  The Company filed for chapter 11
protection on December 2, 2001 (Bankr. S.D.N.Y. Case No.: 01-
16033) Martin J. Bienenstock, Esq., and Brian S. Rosen, Esq., at
Weil, Gotshal & Manges, LLP, represent the Debtors in their
restructuring efforts. (Enron Bankruptcy News, Issue No. 121;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


EXIDE TECH: Posts $1.7 Billion Combined 2nd Quarter Net Income
--------------------------------------------------------------
Exide Technologies (NASDAQ: XIDE), a global leader in stored
electrical energy solutions, reported financial results for the
first quarter of fiscal 2005 ended June 30, 2004.

As a result of the Company's emergence from Chapter 11 on May 5,
2004, financial results for the quarter are split between
"Successor Company" and "Predecessor Company."  For the period
April 1 to May 5, 2004, Exide (Predecessor Company) reported net
income of $1.749 billion, including an extraordinary gain from
the discharge of liabilities of $1.56 billion, related Fresh
Start accounting adjustments of $228.4 million and reorganization
costs associated with the bankruptcy of $18.4 million.  For the
period May 6 to June 30, 2004, Exide (Successor Company) reported
net income of $33.6 million, including a non-cash gain of $43.6
million from the mark-to-market of warrants issued as part of the
Company's Plan of Reorganization and reorganization costs of $1.7
million.

For purposes of the presentation of results of operations, unless
otherwise indicated, the results of the Predecessor Company for
the period April 1, 2004 through May 5, 2004 have been combined
with the results of the Successor Company for the period
subsequent to emergence.

Combined consolidated net income for the quarter was $1.782
billion, including the extraordinary gain from the discharge of
liabilities of $1.56 billion, related Fresh Start accounting
adjustments of $228.4 million and reorganization costs associated
with the bankruptcy of $20.1 million.  First quarter results also
included the non-cash gain of $43.6 million from the mark-to-
market of warrants issued by the Company.  Excluding
reorganization items and the mark-to-market gain, higher lead
prices in the quarter, which were partially offset by higher
average selling prices and cost reductions, negatively affected
earnings.

Consolidated net sales for the first quarter of fiscal 2005 rose
nearly 5% to $612.5 million from $584.6 million in the first
quarter of fiscal 2004, largely due to favorable currency
exchange rates and the effect of pricing actions.

"We have made continued progress this quarter executing our
restructuring and strategic growth initiatives," said Craig H.
Muhlhauser, President and Chief Executive Officer of Exide
Technologies.  "We are focused on strengthening Exide's position
as an industry leader and creating long-term value for our
shareholders.  The Company remains committed to successfully
implementing our restructuring plans while improving our
operating cash flow, driving cost reductions, improving quality,
developing new business and mitigating the impact of increasing
lead prices on our financial results.  Key to our success is
Exide's employee commitment to delivering innovative technologies
and products and superior service and solutions to our customers
worldwide.  We have the financial foundation in place to support
our future growth and profitability."

As previously stated, results for the first fiscal quarter of 2005
reflect the implementation of Fresh Start accounting in accordance
with the Company's emergence from Chapter 11. Adopting Fresh Start
reporting has resulted in material adjustments to the historical
carrying values of the Company's assets and liabilities, and has
required the Company to allocate the reorganization value to its
assets based upon estimated fair values.  The Company's Form 10-Q,
being filed with the U.S. Securities and Exchange Commission,
provides a discussion of the effects of Fresh Start accounting on
earnings.

                      Transportation Business

For its Transportation business, the Company reported income of
$10.4 million before reorganization items, income taxes, minority
interest and cumulative effect of change in accounting principle
compared to $23.8 million in the first quarter of fiscal 2004.  
The reduction in reported income was principally attributable to
the impact of higher lead costs and Fresh Start accounting
adjustments affecting depreciation and inventory.

Net sales were $377.9 million for the first fiscal quarter of
fiscal 2005 compared to $357.3 million for the same period in
fiscal 2004.  Currency effects improved Transportation net sales
in the first quarter of fiscal 2005 by approximately $10.8
million.  The remaining change in net sales was due to higher
average selling prices and third-party lead sales.

Transportation revenues in North America declined slightly due to
reduced unit volumes, principally in the aftermarket channel,
while European volumes declined slightly in the original equipment
channel.  Average selling prices for the first quarter of fiscal
2005 were higher than the first quarter of fiscal 2004, primarily
from the effect of lead-related pricing adjustments.

                     Industrial Energy Business

For the Industrial Energy business, the Company reported income of
$10.4 million before reorganization items, income taxes, minority
interest and cumulative effect of change in accounting principle
compared to $14.0 million in the first quarter of the previous
fiscal year.

Net sales were $234.7 million for the first quarter of fiscal 2005
compared to $227.3 million for the same period in fiscal 2004.  
Currency positively impacted Industrial Energy net sales in the
first quarter of fiscal 2005 by approximately $11 million.  Lower
telecommunication market volumes in Asia and competitive pricing
pressures in Europe, within both the original equipment and
aftermarket channels were partially offset by higher forklift
battery volumes in North America and Europe.

                          Lead Pricing

During the quarter, the average price of lead, which comprises
approximately one-third of the Company's cost of goods sold, was
EUR674 ($813 USD) per metric tonne on the London Metal Exchange
versus the prior year first quarter average of EUR402 ($456 USD)
per metric tonne.  Exide continues to implement programs to help
mitigate the impact of higher and volatile prices for lead on both
segments of the Company's business.  The adverse impact of these
higher lead prices on cost of goods sold for the first quarter was
approximately $25 million.  The Company estimates that it
recovered approximately 50-60% of these higher lead costs through
pricing and related actions during the first quarter of fiscal
2005.  Cost of goods sold was also negatively impacted from higher
depreciation and the step-up of inventories due to Fresh Start
reporting by approximately $3.0 million and $2.6 million
respectively.  The Company's initiatives for reducing the impact
of higher lead prices on earnings and cash flow include selective
pricing actions, programs to secure higher return rates on spent
batteries from customers and hedging strategies.

                    About Exide Technologies

Exide Technologies, with operations in 89 countries and fiscal
2004 net sales of approximately $2.5 billion, is one of the
world's largest producers and recyclers of lead-acid batteries.  
The Company's two global business groups -- industrial energy and
transportation -- provide a comprehensive range of stored
electrical energy products and services for industrial and
transportation applications.  Transportation markets include
original-equipment and aftermarket automotive, heavy-duty truck,
agricultural and marine applications, and new technologies for
hybrid vehicles and 42-volt automotive applications.  Industrial
markets include network power applications such as
telecommunications systems, fuel-cell load leveling, electric
utilities, railroads, photovoltaic (solar-power related) and
uninterruptible power supply (UPS), and motive-power applications
including lift trucks, mining and other commercial vehicles.  
Further information about Exide, including its financial results,
is available at http://www.exide.com

A full-text copy of Exide Technologies' financial results for the
period ending June 30, 2004 is available for free at:

   http://www.sec.gov/Archives/edgar/data/813781/000119312504138759/d10q.htm


                Exide Technologies and Subsidiaries
          Unaudited Condensed Consolidated Balance Sheets
                       As of June 30, 2004
                          (in thousands)

                               Assets

Current Assets:
    Cash and cash equivalents                            $42,973
    Restricted cash                                        2,581
    Receivables (net of allowance of doubtful accounts)  625,936
    Inventories                                          434,603
    Prepaid expense                                       20,512
    Deferred financing costs, net                              -
    Deferred income taxes                                 34,410
                                                      ----------
       Total current assets                            1,161,015
                                                      ----------
Property Plant & Equipment, net                          814,900
                                                      ----------
Goodwill, net                                            399,388
Other intangibles, net                                   197,843
Deferred financing costs                                       -
Deferred income taxes                                     95,768
Investment in subsidiaries & affiliates                    7,175
Other assets                                              34,825
                                                      ----------
                                                         734,999
                                                      ----------
Total Assets                                          $2,710,914
                                                      ==========

                 Liabilities & Stockholder's Equity

Current liabilities:
    Accounts payable                                    $285,185
    Accrued expenses                                     367,700
    Current maturities of long-term debt                   3,748
    Short term borrowings                                 11,181
    Warrants liability                                    30,688
                                                      ----------
       Total current liabilities                         698,502

Long-term debt                                           540,720
Non-current retirement obligations                       319,214
Non-current deferred tax liability                       111,650
Other non-current liabilities                            112,628
Liabilities Subject to Compromise                              -
                                                      ----------
Total Liabilities                                      1,782,714
                                                      ----------
Minority interest                                         12,236
                                                      ----------
Stockholders' equity:
    Common stock                                             234
    Paid in capital                                      888,157
    Retained Earnings                                     33,627
    Notes receivable-stock award plan                          -
    Accumulated other comprehensive loss                  (6,054)
                                                      ----------
Total Stockholder's Equity                               915,964
                                                      ----------
Total Liabilities & Stockholder's Equity              $2,710,914
                                                      ==========


     Exide Technologies and Subsidiaries -- Predecessor Company
     Unaudited Condensed Consolidated Statements of Operations
                   April 1, 2004 to May 5, 2004
                          (in thousands)

Net Sales                                               $214,607
Cost of Sales                                            179,137
                                                      ----------
Gross Profit                                              35,470

Operating Expenses:
    Selling, marketing and advertising                    24,504
    General and administrative                            17,940
    Restructuring and other                                  602
    Purchased research and development                         -
    Goodwill impairment charge                                 -
    Other (income) expense, net                            6,222
    Interest expense, net                                  8,870
                                                      ----------
                                                          58,138
                                                      ----------
    Income before reorganization items, income tax,
    minority interest and cumulative effect of change
    in accounting principle                              (22,668)

Reorganization Items                                      18,434
Fresh start accounting adjustment, net                  (228,371)
Gain on Discharge of
    liabilities subject to compromise                 (1,558,839)
Income tax (benefit) provision                            (2,482)
Minority interest                                             26
                                                      ----------
    Net income before change in accounting principle   1,748,564

Cumulative effect of change in accounting principle           -
                                                      ----------
Net Income                                            $1,748,564
                                                      ==========


     Exide Technologies and Subsidiaries -- Successor Company
     Unaudited Condensed Consolidated Statements of Operations
                   May 6, 2004 to June 30, 2004
                          (in thousands)

Net Sales                                               $397,928
Cost of Sales                                            333,129
                                                      ----------
Gross Profit                                              64,799

Operating Expenses:
    Selling, marketing and advertising                    41,288
    General and administrative                            23,389
    Restructuring and other                                2,447
    Purchased research and development                         -
    Goodwill impairment charge                                 -
    Other (income) expense, net                          (42,876)
    Interest expense, net                                  6,026
                                                      ----------
                                                          30,274
                                                      ----------
    Income before reorganization items, income tax,
    minority interest and cumulative effect of change
    in accounting principle                               34,525

Reorganization Items                                       1,693
Income tax (benefit) provision                              (828)
Minority interest                                             33
                                                      ----------
    Net income before change in accounting principle      33,627

Cumulative effect of change in accounting principle           -
                                                      ----------
Net Income                                               $33,627
                                                      ==========


     Exide Technologies and Subsidiaries -- Predecessor Company
     Unaudited Condensed Consolidated Statements Of Cash Flows
                   April 1, 2004 to May 5, 2004
                          (in thousands)

Cash Flows From Operating Activities:
    Net income                                        $1,748,564
    Adjustments to reconcile net loss:
       Depreciation and amortization                       7,848
       Net loss (gain) on asset sales                          -
       Effect of change in accounting principle                -
       Amortization of original issue discount on notes        -
       Gain on discharge of liabilities subject to
          compromise                                  (1,558,839)
       Fresh start accounting adjustments, net          (228,371)
       Provision for doubtful accounts                       473
       Non-cash provision for restructuring                   18
       Reorganization items, net                          18,434
       Goodwill impairment charge                              -
       Minority interest                                      26
       Amortization of deferred financing costs            1,251
       Net change from sales of receivables:
          European securitization                              -
          U.S. securitization                                  -
          Other, net                                           -
    Changes in assets and liabilities:
       Receivables                                        45,924
       Inventories                                       (10,873)
       Prepaid expenses                                      286
       Accounts payable                                  (20,967)
       Accrued expenses                                  (20,564)
       Non-current liabilities                              (294)
       Other, net                                          9,898
                                                      ----------
Net cash used in operating activities                    (7,186)

Cash Flows From Investing Activities:
    Capital expenditures                                  (7,152)
    Proceeds from sales of assets                          2,800
                                                      ----------
Net cash used in investing activities                     (4,352)

Cash Flows From Financing Activities:
    Increase (decrease) in short-term borrowings, net      2,425
    Borrowings under DIP Credit Facility                       -
    Repayments under DIP Credit Facility                       -
    Repayments under 9.125% Senior Notes                (110,082)
    Borrowings under Replacement DIP Credit Facility     121,258
    Repayments under Replacement DIP Credit Facility    (452,875)
    Borrowings under Senior Secured Credit Facility      500,000
    European asset securitization                              -
    Decrease in other debt                                (2,412)
    Financing costs                                      (23,146)
    Dividends paid                                             -
                                                      ----------
Net cash provided by financing activities                 35,168
                                                      ----------
Effect of Exchange Rate Changes on Cash                   (1,447)
                                                      ----------
Net Increase (Decrease) In Cash                           22,183
Cash And Cash Equivalents, Beginning Of Period            37,413
                                                      ----------
Cash And Cash Equivalents, End Of Period                 $59,596
                                                      ==========


     Exide Technologies and Subsidiaries -- Successor Company
     Unaudited Condensed Consolidated Statements Of Cash Flows
                   May 6, 2004 to June 30, 2004
                          (in thousands)

Cash Flows From Operating Activities:
    Net income                                           $33,627
    Adjustments to reconcile net loss:
       Depreciation and amortization                      21,699
       Net loss (gain) on asset sales                          -
       Effect of change in accounting principle                -
       Unrealized gain on Warrants                       (43,612)
       Provision for doubtful accounts                       590
       Non-cash provision for restructuring                   84
       Reorganization items, net                           1,693
       Goodwill impairment charge                              -
       Minority interest                                      33
       Amortization of deferred financing costs                -
       Net change from sales of receivables:
          European securitization                              -
          U.S. securitization                                  -
          Other, net                                           -
    Changes in assets and liabilities:
       Receivables                                        (5,781)
       Inventories                                       (17,317)
       Prepaid expenses                                      572
       Accounts payable                                    3,576
       Accrued expenses                                   (3,536)
       Non-current liabilities                              (588)
       Other, net                                         (6,849)
                                                      ----------
Net cash used in operating activities                    (15,809)

Cash Flows From Investing Activities:
    Capital expenditures                                  (8,332)
    Proceeds from sales of assets                          3,600
                                                      ----------
Net cash used in investing activities                     (4,732)

Cash Flows From Financing Activities:
    Increase (decrease) in short-term borrowings, net        376
    Increase in other debt                                 2,776
    Financing costs                                            -
    Dividends paid                                             -
                                                      ----------
Net cash provided by financing activities                  3,152
                                                      ----------
Effect of Exchange Rate Changes on Cash                      766
                                                      ----------
Net Increase (Decrease) In Cash                          (16,623)
Cash And Cash Equivalents, Beginning Of Period            59,596
                                                      ----------
Cash And Cash Equivalents, End Of Period                 $42,973
                                                      ==========


HAYES LEMMERZ: Creditor Trust Releases 2nd Quarter 2004 Results
---------------------------------------------------------------

                         HLI Creditor Trust
                    Unaudited Cash Balance Sheet
                        As of June 30, 2004

Assets:
Cash                                                  $5,988,667

Liabilities:
Trust Expenses Reserve, net                            5,988,667
    Expense advance account                                    0
    Reimbursements to Reorganized Debtors account              0
Claimholder distribution reserve                               0
                                                      ----------
                                                      $5,988,667
                                                      ==========


                         HLI Creditor Trust
       Unaudited Statement of Cash Receipts and Disbursements
           Period from June 3, 2003 through May 31, 2004

Cash Receipts:
    Funding of Expense Advance                        $1,250,000
    Trust Recoveries                                  10,414,021
    Interest Income                                        5,739
                                                      ----------
                                                      11,669,760
                                                      ----------
Cash Disbursements:
    Repayment of expense advance                      (1,250,000)
    Trust Expenses                                    (4,659,175)
                                                      ----------
                                                      (5,909,175)
                                                      ----------

Net increase (decrease) in cash                        5,760,585
Cash at beginning of period                                    -
                                                      ----------
Cash at end of period                                 $5,760,585
                                                      ==========


                         HLI Creditor Trust
       Unaudited Statement of Cash Receipts and Disbursements
         For the Period April 1, 2004 through June 30, 2004

Cash Receipts:
    Funding of Expense Advance                                $0
    Trust Recoveries                                   7,500,065
    Interest Income                                        4,208
                                                      ----------
                                                       7,504,273
                                                      ----------
Cash Disbursements:
    Repayment of expense advance                      (1,250,000)
    Reimbursements to Reorganized
       Debtors                                                (0)
    Distributions to beneficiaries                            (0)
    Trust Expenses                                    (2,874,917)
                                                      ----------
                                                      (4,124,917)
                                                      ----------

Net increase (decrease) in cash                        3,379,356
Cash at beginning of period                            2,609,311
                                                      ----------
Cash at end of period                                 $5,988,667
                                                      ==========


INSILCO HOLDING: Reports $13.2 Million in Assets at June 30
-----------------------------------------------------------
For the month ending June 30, 2004, Insilco Holding Co., reports
no income and no expenses.  At June 30, 2004, on a consolidated
basis, Insilco reports $13.2 million in total assets, $51.7
million in current liabilities and $211.9 million in long-term
debt.

A full-text copy of Insilco's June 2004 Monthly Operating Report
is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1068049/000107261304001457/exhibit99_12884.txt


Insilco International Holding Company is a holding company and  
Signal Caribe is a non-operating company and thus there is no  
activity to report for these two companies.

The following companies were sold in March 2003 and thus have no  
activity for the current or future reporting periods:

   Precision Cable Manufacturing                 02-13675
   Stewart Stamping Corporation                  02-13678
   EFI Metal Forming, Inc.                       02-13677
   Eyelets for Industry, Inc.                    02-13676
   Stewart Connector Systems                     02-13679
   Signal Transformer Co. Inc.                   02-13681
   InNet Technologies                            02-13673

On December 16, 2002, Insilco Holding Co., the parent Company of  
Insilco Technologies, Inc., and seven of its subsidiaries (Insilco  
International Holding, Inc., Precision Cable Mfg. Co. Inc.,  
Stewart Stamping Corporation, InNet Technologies, Inc., Stewart  
Connector Systems, Inc., Eyelets For Industry, Inc., and its  
subsidiary EFI Metal Forming, Inc., and Signal Transformer Co.,  
Inc., and its subsidiary Signal Caribe, Inc.) filed voluntary  
petitions for relief under Chapter 11 of the United States  
Bankruptcy Code with the United States Bankruptcy Court for the  
District of Delaware, Case No. 02-13672.


MARINER: Reports $3.3 Million Second Quarter 2004 Net Income
------------------------------------------------------------
Mariner Health Care, Inc. (OTC Bulletin Board: MHCA) announced net
income for the 2004 second quarter of $3.4 million as compared to
a net loss of ($1.7) million for the comparable 2003 period.  
Revenues decreased $14.8 million, or 3.5% to $411.8 million from
$426.6 million for the same period last year, primarily due to  
facilities divested during the three months ended December 31,  
2003.  For facilities operated at June 30, 2004, revenues  
increased 9.4% to $411.6 million from $376.2 million for the  
three months ended June 30, 2003.  Mariner achieved a significant  
improvement in Adjusted EBITDA (earnings before interest, taxes,  
depreciation and amortization, and certain divestiture and merger  
related items) to $27.1 million for the second quarter ended
June 30, 2004 as compared to $14.7 million for the same period in  
2003.

                       Six Month Results

Consolidated revenues for the six months ended June 30, 2004  
decreased 3.5% to $817.9 million from $847.1 million for the  
comparable 2003 period.  The decrease in revenues is primarily  
related to the divestiture of facilities during the fourth  
quarter of 2003.  Mariner recorded net income of $9.6 million for  
the six months ended June 30, 2004 as compared to net income of  
$1.1 million for the comparable 2003 period.  Adjusted EBITDA was  
$52.8 million for the six months ended June 30, 2004, as compared  
to $32.5 million for the comparable 2003 six-month period.  Our  
average per diem rate for Medicare Part A for same facility  
operations increased 8.9%, from $298.13 in the six months ended  
June 30, 2003 to $324.77 for the six months ended June 30, 2004.   
This resulted in increased revenues of $17.6 million.  

                     Operating Commentary

As a percentage of total revenues, same facility Medicare  
revenues grew slightly, increasing to 32.3% for the second  
quarter of 2004 from 32.1% for the same period in 2003.  Same  
facility Medicare revenues associated with Mariner's skilled  
nursing and long-term acute care hospital segments accounted for  
25.7% and 6.5% of total revenues, respectively, for the second  
quarter of 2004 compared to 25.6% and 6.4% of total revenues,  
respectively for the second quarter of 2003.

"Our operational focus continued to yield results during the  
quarter," said C. Christian Winkle, Chief Executive Officer.   
"For the second quarter of 2004, our Adjusted EBITDA margin  
improved to 6.6% from 3.4% from the same period last year.   
Furthermore, profitability of both our skilled nursing facility  
and long-term acute care hospital groups continued to show  
improvement during the quarter.  These improvements reflect the  
continued success of our operational strategies."

                         Merger Agreement

On June 29, 2004, the Company entered into a merger  
agreement with National Senior Care, Inc. and NCARE Acquisition
Corp., a wholly owned subsidiary of NSC established for the
purpose of acquiring the Company.  Pursuant to the Merger
Agreement, NCARE will acquire the issued and outstanding shares of
common stock of the Company for $30.00 per share in cash.  The
merger is expected to close in the fourth quarter of 2004 and is
subject to various conditions contained in the Merger Agreement,
including but not limited to the approval of the stockholders of
the Company, receipt of financing by NSC and other regulatory,
governmental and licensing approvals.  Once the Company receives a
commitment letter from NSC and NCARE containing customary terms in  
connection with the financing necessary to consummate the merger,  
the Company expects to seek stockholder approval of the merger.

                   About Mariner Health Care

Mariner, headquartered in Atlanta, Georgia, is one of the  
largest long-term care operators in the United States.  Mariner,  
through its subsidiaries and affiliates, operates 256 skilled  
nursing and assisted living facilities as well as eleven long-
term acute care hospitals representing 31,399 beds across the  
country.  Additional Company information is available at
http://www.marinerhealthcare.com

A full-text copy of Mariner's third quarter results filed on Form  
10-Q with the Securities and Exchange Commission is available for  
free at:

  http://www.sec.gov/Archives/edgar/data/882287/000095014404007875/g90284e10vq.htm  


                    Mariner Health Care, Inc.
              Condensed Consolidated Balance Sheets
                        At June 30, 2004
                         (in thousands)

                             Assets  

Current assets
   Cash and cash equivalents                            $26,815
   Receivables, net of allowance for doubtful  
      accounts of $102,213 and $97,448                  239,912
   Prepaid expenses and other current assets             21,887
                                                     ----------
   Total current assets                                 288,614

Property and equipment, net                             535,946
Reorganization value                                    192,771
Goodwill, net of accumulated amortization of $970         6,797  
Restricted investments                                   17,397  
Other assets                                             35,804  
                                                     ----------  
Total Assets                                         $1,077,329
                                                     ==========

              Liabilities and Stockholders' Equity

Current liabilities
   Current maturities of long-term debt                 $17,381  
   Accounts payable                                      45,961  
   Accrued compensation and benefits                     66,945  
   Accrued insurance obligations                         72,312  
   Other current liabilities                             53,147  
                                                     ----------
Total current liabilities                               255,746
  
Long-term debt, net of current maturities               367,107  
Long-term insurance reserves                            160,218  
Other liabilities                                        25,253  
Minority interest                                         3,355  
                                                     ----------
Total liabilities                                       811,679  

Stockholders' equity  
  Preferred stock                                             -  
  Common stock                                              200  
  Warrants to purchase common stock                           -  
  Capital surplus                                       361,094  
  Unearned compensation                                    (403)  
  Accumulated deficit                                   (95,265)  
  Accumulated other comprehensive income                     24  
                                                     ----------
    Total stockholders' equity                          265,650  
                                                     ----------
Total Liabilities and Stockholders' Equity           $1,077,329
                                                     ==========


                    Mariner Health Care, Inc.  
         Condensed Consolidated Statements of Operations  
            For The Three Months Ended June 30, 2004
                         (in thousands)

Net revenue                                            $411,772  
Costs and expenses
   Operating expenses
   Wage and related costs                               231,162  
   Supplies                                              23,012  
   Insurance                                             16,772  
   Provision for bad debt                                 3,822
   Rent expense                                           8,092  
   Other                                                 74,462  
                                                     ----------
   Total operating expenses                             357,322

General and administrative                               27,344  
Merger related costs                                      2,142  
Depreciation and amortization                            10,618  
                                                     ----------
   Total costs and expenses                             397,426
                                                     ----------
Operating income                                         14,346

Other income (expenses):
   Interest expense                                      (8,489)
   Interest income                                          739
   Other                                                    (31)

(Loss) Income from continuing operations before taxes     6,565

(Benefit) provision for income taxes                        732
                                                     ----------
(Loss) income from continuing operations                  5,833

Discontinued operations
   (Loss) gain on sale of discontinued  
      operations, net of tax                               (709)
   Loss from discontinued operations, net of tax         (1,772)
                                                     ----------
Net income (loss)                                        $3,352
                                                     ==========


                    Mariner Health Care, Inc.  
         Condensed Consolidated Statement of Cash Flows  
                 Six Months Ended June 30, 2004  
                         (in thousands)

Cash flows from operating activities  
   Net income                                            $9,579  
   Adjustments to reconcile net income to net cash  
      provided by operating activities:  
      Provision for bad debts                             7,126  
      Gain from divestitures and sales                   (1,828)  
      Depreciation and amortization                      20,275  
      Amortization of deferred financing costs              981  
      Stock compensation                                    231  
      Minority interest and other                            36
      Provision (benefit) for income taxes                1,627
      Loss from discontinued operations                   2,088
   Changes in operating assets and liabilities:  
      Receivables                                       (15,274)
      Prepaid expenses and other current assets           3,422
      Accounts payable                                  (23,589)
      Accrued and other current liabilities              11,497
      Insurance obligations                             (12,909)
      Other                                              (5,760)
                                                     ----------
Net cash (utilized) provided by operating  
   activities from continuing operations  
   before reorganization items                           (2,498)
                                                     ----------
Net cash utilized by discontinued operations             (2,093)
                                                     ----------
Payment of reorganization items, net                     (3,416)

Cash flows from investing activities
   Purchases of property and equipment                  (16,436)
   Proceeds from divestitures and sales                   7,737
   Restricted investments                                 1,590
   Collections on notes receivable                        5,145
   Insurance proceeds                                         -
                                                     ----------
Net cash utilized by investing activities                (1,964)

Cash flows from financing activities  
   Repayment of long-term debt                           (5,148)
                                                     ----------
Net cash utilized by financing activities                (5,148)

(Decrease) increase in cash and cash equivalents        (15,119)
  
Cash and cash equivalents, beginning of period           41,934
                                                     ----------
Cash and cash equivalents, end of period                $26,815
                                                     ==========


MIRANT CORP: Reports $32 Million Net Income for Second Quarter
--------------------------------------------------------------
   
               Mirant Corporation and Subsidiaries  
              Unaudited Consolidated Balance Sheet  
                       As of June 30, 2004  
  
ASSETS  
  
Cash and cash equivalents                       $1,274,000,000  
Funds on deposit                                   304,000,000  
Receivables, net                                 1,092,000,000  
Price risk management assets                       150,000,000  
Inventories                                        300,000,000  
Other                                              266,000,000  
                                               ---------------  
     Total Current Assets                        3,386,000,000  
  
Property, plant and equipment, net               6,567,000,000  
Non-current Assets:  
  Goodwill, net of amortization                    587,000,000  
  Other intangible assets, net                     275,000,000  
  Investments                                      245,000,000  
  Notes and other receivables                                0  
  Price risk management assets                     132,000,000  
  Other                                            463,000,000  
                                               ---------------  
     Total Non-current Assets                    1,702,000,000  
                                               ---------------  
TOTAL ASSETS                                   $11,655,000,000  
                                               ===============  
  
LIABILITIES AND EQUITY  
  
Current Liabilities:  
  Short-term debt                                  $25,000,000  
  Current portion of long-term debt                202,000,000  
  Accounts payable and accrued liabilities         488,000,000  
  Price risk management liabilities                248,000,000  
  Transition power agreements                      125,000,000  
  Other                                            257,000,000  
                                               ---------------  
     Total current liabilities                   1,345,000,000  
Non-current Liabilities:  
  Long-term debt                                 1,261,000,000  
  Price risk management liabilities                123,000,000  
  Transition power agreements                        8,000,000  
  Other                                            690,000,000  
                                               ---------------  
     Total Non-current liabilities               2,082,000,000  
  
Liabilities subject to compromise                8,816,000,000  
Minority interest in subsidiaries                  165,000,000  
Stockholders' Equity:  
  Common stock                                       4,000,000  
  Additional paid-in capital                     4,918,000,000  
  Accumulated deficit                           (5,617,000,000)  
  Accumulated other comprehensive loss             (56,000,000)  
  Treasury stock, at cost                           (2,000,000)  
                                               ---------------  
     TOTAL STOCKHOLDERS' DEFICIT                  (753,000,000)  
                                               ---------------  
     TOTAL LIABILITIES & STOCKHOLDERS DEFICIT  $11,655,000,000  
                                               ===============  
  
  
               Mirant Corporation and Subsidiaries  
           Unaudited Consolidated Statements of Income  
            For the three months ended June 30, 2004  
  
REVENUES:  
  Generation                                    $1,126,000,000  
  Integrated utilities and distribution            136,000,000  
  Net trading revenue                                2,000,000  
                                               ---------------  
     Total Operating Revenues                    1,264,000,000  
  
Cost of fuel, electricity and other products       768,000,000  
                                               ---------------  
     Gross Margin                                  496,000,000  
                                               ---------------  
OPERATING EXPENSES:  
  Operations and maintenance                       251,000,000  
  Depreciation and amortization                     77,000,000  
  Impairment losses and restructuring charges       53,000,000  
  Gain on sale of assets, net                        1,000,000  
                                               ---------------  
     Total Operating Expenses                      382,000,000  
                                               ---------------  
     Income before non-operating income  
     and expense                                   114,000,000  
  
OTHER INCOME AND EXPENSES:  
  Interest expense                                 (33,000,000)  
  Interest rate hedging losses                               0  
  Gain on sales of investments, net                          0  
  Equity in income of affiliates                     7,000,000  
  Other, net                                         2,000,000  
  Minority interest                                          0  
  Interest income                                    2,000,000  
                                               ---------------  
     Total other expense, net                       11,000,000  
  
Income from continuing operations before taxes     125,000,000  
Provision for income taxes                          73,000,000  
Reorganization items, net                           13,000,000  
Minority interest                                    7,000,000  
                                               ---------------  
    Income from continuing operations               32,000,000  
  
Income(loss) from discontinued operations, net               0  
                                               ---------------  
Loss before change in accounting principle          32,000,000  
                                               ---------------  
    NET INCOME                                     $32,000,000  
                                               ===============

  
               Mirant Corporation and Subsidiaries  
         Unaudited Consolidated Statements of Cash Flows  
             For the six months ended June 30, 2004  
  
Cash Flows from Operating Activities:  
Net income                                         $62,000,000  
Adjustments:  
  Equity in income of affiliates                   (14,000,000)  
  Dividends received from equity investments        12,000,000  
  Change in accounting principles                            0  
  Restructuring charges                             48,000,000  
  Gain on sale of assets and investments           (15,000,000)  
  Depreciation and amortization                    161,000,000  
  Amortization of power agreements                (236,000,000)  
  Non-cash changes for reorganization items         91,000,000  
  Amortization of transition power agreements                0  
  Price risk management activities, net            (66,000,000)  
  Deferred income taxes                              5,000,000  
  Minority interest                                 12,000,000  
  Interest rate hedging losses                               0  
  Other, net                                         4,000,000  
Change in operating assets and liabilities:  
  Receivables, net                                 113,000,000  
  Other current assets                            (117,000,000)  
  Other assets                                     (12,000,000)  
  Accounts payable and accrued liabilities        (303,000,000)  
  Taxes accrued                                     19,000,000  
  Other current liabilities                          8,000,000  
  Other liabilities                                (23,000,000)  
                                               ---------------  
     Total adjustments                            (313,000,000)  
                                               ---------------  
     Net cash provided by operating activities    (251,000,000)  
                                               ---------------  
Cash Flows from Investing Activities:  
Capital expenditures                               (60,000,000)  
Cash paid for acquisitions                         (21,000,000)  
Issuance of notes receivable                                 0  
Repayments on notes receivable                       1,000,000  
Proceeds from the sale of assets                     3,000,000  
Cash paid in relation to disposition               (12,000,000)  
                                               ---------------  
     Net cash provided by investing activities     (89,000,000)  
                                               ---------------  
Cash Flows from Financing Activities:  
Proceeds from issuance of debt                     132,000,000  
Repayment of long-term debt                       (101,000,000)  
Payment dividends to minority interests             (7,000,000)
Issuance of short-term debt, net                    (3,000,000)  
Change in debt service reserve fund                  4,000,000  
                                               ---------------  
     Net cash from financing activities             25,000,000  
                                               ---------------  
Exchange rate effect on cash                                 0  
                                               ---------------  
Net increase in cash                              (315,000,000)  
Cash, beginning of period                        1,589,000,000  
                                               ---------------  
Cash, end of period                             $1,274,000,000  
                                               ===============  

A full-text copy of Mirant Corporation's Form 10-Q Report is   
available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1010775/000104746904025860/a2141502z10-q.htm


Headquartered in Atlanta, Georgia, Mirant Corporation --  
http://www.mirant.com/-- together with its direct and indirect   
subsidiaries, generate, sell and deliver electricity in North  
America, the Philippines and the Caribbean.  The Company filed for  
chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex.  
03-46590).  Thomas E. Lauria, Esq., at White & Case LLP represent  
the Debtors in their restructuring efforts.  When the Company  
filed for protection from their creditors, they listed  
$20,574,000,000 in assets and $11,401,000,000 in debts. (Mirant  
Bankruptcy News, Issue No. 41; Bankruptcy Creditors' Service,  
Inc., 215/945-7000)


PACIFIC GAS: PG&E Reports $412 Million 2nd Quarter Net Income
-------------------------------------------------------------
A full-text copy of Pacific Gas and Electric Company's second
quarter results on Form 10-Q is available for free at the
Securities and Exchange Commission at:

   http://www.sec.gov/Archives/edgar/data/75488/000100498004000189/pge10q_q2.htm


                Pacific Gas and Electric Company
             Unaudited Consolidated Balance Sheets
                        At June 30, 2004
                         (in millions)

                             ASSETS

Current Assets:
   Cash and cash equivalents                               $553
   Restricted cash                                        2,144
   Accounts receivable:
      Customers (net of allowance for
         doubtful accounts)                               2,034
      Related parties                                         3
      Regulatory balancing accounts                         817
   Inventories:
      Gas stored underground and fuel oil                   160
      Materials and supplies                                127
   Prepaid expenses and other                                40
                                                     ----------
Total current assets                                      5,878

Property, Plant and Equipment:
   Electric                                              20,924
   Gas                                                    8,465
   Construction work in progress                            388
                                                     ----------
Total property, plant and equipment                      29,777

Accumulated depreciation and decommissioning            (11,238)
                                                     ----------
Net property, plant and equipment                        18,539

Other Non-current Assets:
   Regulatory assets                                      6,811
   Nuclear decommissioning funds                          1,522
   Other                                                  1,041
                                                     ----------
Total other non-current assets                            9,374
                                                     ----------
TOTAL ASSETS                                            $33,791
                                                     ==========

              LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities Not Subject to Compromise:
Current Liabilities:
   Long-term debt, classified as current                   $458
   Current portion of rate reduction bonds                  290
   Accounts payable:
      Trade creditors                                       528
   Disputed claims:
      Related parties                                        45
      Regulatory balancing accounts                         315
      Other                                                 453
   Interest payable                                         420
   Income taxes payable                                     332
   Deferred income taxes                                    106
   Other                                                    768
                                                     ----------
Total current liabilities                                 5,863

Non-current Liabilities:
   Long-term debt                                         7,845
   Rate reduction bonds                                     729
   Regulatory liabilities                                 3,997
   Asset retirement obligations                           1,259
   Deferred income taxes                                  3,423
   Deferred tax credits                                     123
   Preferred stock with redemption provisions               126
   Other                                                  1,784
                                                     ----------
Total non-current liabilities                            19,286

Liabilities Subject to Compromise:
   Financing debt                                             -
   Trade creditors                                            -
                                                     ----------
Total liabilities subject to compromise                       -

Commitments and Contingencies                                 -

Shareholders' Equity
   Preferred Stock With Mandatory Redemption Provisions:
      Non-redeemable, 5% to 6%,
         outstanding 5,784,825 shares                       145
      Redeemable, 4.36% to 7.04%, outstanding 5,973,456     149
   Common stock, $5 par value, authorized
      800,000,000 shares, issued 321,314,760 shares       1,606
   Common stock held by subsidiary, at cost, 19,481,213    (475)
   Additional pad-in capital                              2,040
   Reinvested earnings                                    5,180
   Accumulated other comprehensive loss                      (3)
                                                     ----------
Total Shareholders' Equity                                8,642
                                                     ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY              $33,791
                                                     ==========


                Pacific Gas and Electric Company
        Unaudited Consolidated Statements of Operations
                Three months ended June 30, 2004
                         (in millions)

Operating Revenues:
   Electric                                              $2,063
   Natural gas                                              686
                                                     ----------
Total operating revenues                                  2,749

Operating Expenses:
   Cost of electricity                                      685
   Cost of natural gas                                      278
   Operating and maintenance                                748
   Recognition of regulatory assets                           -
   Depreciation, amortization, and decommissioning          352
   Reorganization professional fees and expenses              4
                                                     ----------
Total operating (gain) expenses                           2,067
                                                     ----------
Operating Income                                            682

Reorganization interest income                                -
Interest income                                              23
Interest expense (non-contractual interest of
   $31 million in 2004 and $67 million in 2003)            (158)
Other income (expense), net                                  24
                                                     ----------
Income (loss) Before Income Taxes                           571

Income tax provision (benefit)                              159
                                                     ----------
Income (loss) Before Cumulative Effect of
   Changes in Accounting Principles                         412

Cumulative Effect of changes in
   acctg principles, net                                      -
                                                     ----------
Net Income (loss)                                          $412
                                                     ==========


                Pacific Gas and Electric Company
        Unaudited Consolidated Statements of Cash Flows
                 Six months ended June 30, 2004
                         (in millions)

Cash Flows From Operating Activities:
Net income (loss)                                        $3,486
Adjustments to reconcile net income (loss) to
   net cash provided by operating activities:
   Depreciation, amortization, and decommissioning          650
   Recognition of regulatory assets                      (4,900)
   Deferred income taxes and tax credits, net             2,105
   Other deferred charges and non-current liabilities        79
   Gain on sale of assets                                   (18)
   Cumulative effect of a change in acctg principle           -
Net effect of changes in operating assets & liabilities:
   Restricted cash                                           93
   Accounts receivable                                      (35)
   Inventories                                                5
   Accounts payable                                         170
   Accrued taxes                                            288
   Regulatory balancing accounts, net                      (440)
   Other working capital                                    287
Payments authorized by the Bankruptcy Court on
    amounts classified as liabilities
    subject to compromise                                  (737)
Other, net                                                 (128)
                                                     ----------
Net cash provided by operating activities                   620

Cash Flows From Investing Activities:
   Capital expenditures                                    (737)
   Proceeds from sale of assets                              25
   Increase in restricted cash                           (1,834)
   Other, net                                               (54)
                                                     ----------
Net cash used by investing activities                    (2,600)

Cash Flows From Financing Activities:
   Net proceeds from issuance of long-term debt           6,892
   Long-term debt matured, redeemed, or repurchased      (7,098)
   Rate reduction bonds matured                            (141)
   Dividends paid                                           (88)
   Preferred stock with
      mandatory redemption provisions redeemed              (11)
                                                     ----------
Net cash provided (used) by financing activities           (446)

Net change in cash and cash equivalents                  (2,426)

Cash and cash equivalents at January 1, 2004              2,979
                                                     ----------
Cash and cash equivalents at March 31, 2004                $553
                                                     ==========

Headquartered in San Francisco, California, Pacific Gas and
Electric Company -- http://www.pge.com/-- a wholly owned  
subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest
combination natural gas and electric utilities in the United
States.  The Company filed for Chapter 11 protection on April 6,
2001 (Bankr. N.D. Calif. Case No. 01-30923).  James L. Lopes,
Esq., William J. Lafferty, Esq., and Jeffrey L. Schaffer, Esq., at
Howard, Rice, Nemerovski, Canady, Falk & Rabkin represent the
Debtors in their restructuring efforts.  On June 30, 2001, the
Company listed $23,216,000,000 in assets and $22,152,000,000 in
debts.  Pacific Gas and Electric emerged from chapter 11
protection on April 12, 2004, paying all creditors 100 cents-on-
the-dollar plus post-petition interest.  (Pacific Gas Bankruptcy
News, Issue No. 81; Bankruptcy Creditors' Service, Inc., 215/945-
7000)    


SK GLOBAL: SK Corp. Releases First Half of 2004 Financial Results
-----------------------------------------------------------------

                           SK Corporation
                            Balance Sheet
                        As of June 30, 2004
                          (in Korean won)


Assets                                     15,102,800,000,000
Liabilities                                 9,197,700,000,000
(Debt)                                     (5,305,300,000,000)
                                            ------------------
Shareholders' Equity                        5,905,100,000,000
(Paid-in Capital)                            (647,000,000,000)
                                            ------------------
Debt/Equity (%)                                        155.8%
                                            ------------------
Net Debt to Equity (%)                                  92.5%
                                            ==================

                           SK Corporation
                    Non-Operating Income/Expenses
                     For the first half of 2004
                          (in Korean won)

Net Interest Expense                         (120,400,000,000)
Net F/X Related                                79,000,000,000
Equity Method Gain                            363,000,000,000
Others                                        (53,300,000,000)
                                            ------------------
Net Non-Operating Income                      268,300,000,000
                                            ==================

                           SK Corporation
                           Sales & Profit
                     For the first half of 2004
                          (in Korean won)

Sales                                       7,965,300,000,000
Operating Profit                              748,600,000,000
Non-Operating Profit                          268,300,000,000
                                            ------------------
Pretax Income                               1,016,900,000,000
                                            ==================

                           SK Corporation
                          Divisional Sales
                     For the first half of 2004
                           (in Korean won)

Petroleum                                   5,528,400,000,000
Petrochem                                   1,939,800,000,000
Lube                                          234,500,000,000
E&P                                           100,500,000,000
Others                                        162,100,000,000
                                            ------------------
Total                                       7,965,300,000,000
                                            ==================

                           SK Corporation
                    Divisional Operating Profit
                    For the first half of 2004
                           (in Korean won)

Petroleum                                     368,800,000,000
Petrochem                                     261,900,000,000
Lube                                           35,100,000,000
E&P                                            80,600,000,000
Others                                          2,200,000,000
                                            ------------------
Total                                         748,600,000,000
                                            ==================

                           SK Corporation
                             Net Debts
                          End of June 2004
                           (in Korean won)

Short-Term Debts                            2,222,000,000,000
Long-Term Debts                             3,083,300,000,000
                                            -----------------
Total                                       5,305,300,000,000

Interest Bearing Debts                        792,100,000,000
                                            -----------------
Total Debts                                 6,097,400,000,000
                                            -----------------
Cash & Cash Equivalent                        635,300,000,000
                                            -----------------
Net Debts                                   5,462,100,000,000
                                            =================


A free copy of SK Corporation's First Half of 2004 Financial
Results is available at:

    http://bankrupt.com/misc/half_year_financial_results.pdf


Headquartered in Fort Lee, New Jersey, SK Global America,
Inc., is a subsidiary of SK Global Co., Ltd., one of the world's
leading trading companies.  The Debtors file for chapter 11
protection on July 21, 2003 (Bankr. S.D.N.Y. Case No. 03-14625).  
Albert Togut, Esq., and Scott E. Ratner, Esq., at Togut, Segal &
Segal, LLP, represent the Debtors in their restructuring efforts.  
When they filed for bankruptcy, the Debtors reported
$3,268,611,000 in assets and $3,167,800,000 of liabilities.
(SK Global Bankruptcy News, Issue No. 21; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


SOLUTIA INC: Reports $19 Million Net Loss in June 2004
------------------------------------------------------

                 Solutia Chapter 11 Debtors
    Unaudited Statement of Consolidated Financial Position
                      As of June 30, 2004

                             ASSETS

Current Assets:
    Cash                                             $52,000,000
    Trade Receivables, net                           201,000,000
    Account Receivables-Unconsolidated Subsidiaries   64,000,000
    Inventories                                      156,000,000
    Other Current Assets                              78,000,000
                                                  --------------
Total Current Assets                                 551,000,000

Property, plant and equipment, net                   724,000,000
Investments in Subsidiaries and Affiliates           503,000,000
Intangible Assets, net                               102,000,000
Other Assets                                         151,000,000
                                                  --------------
TOTAL ASSETS                                      $2,031,000,000
                                                  ==============

               LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities:
    Accounts Payable                                $130,000,000
    Other Current Liabilities                        171,000,000
                                                  --------------
Total Current Liabilities                            301,000,000

Long-Term Debt                                       344,000,000
Other Long-Term Liabilities                          236,000,000
                                                  --------------
Total Liabilities not Subject to Compromise          881,000,000
Liabilities Subject to Compromise                  2,301,000,000
Shareholders' Deficit                             (1,151,000,000)
                                                  --------------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT         $2,031,000,000
                                                  ==============


                      Solutia Chapter 11 Debtors
            Unaudited Consolidated Statement of Operations
                   For the Month Ended June 30, 2004

Total Net Sales                                     $193,000,000
Total Cost Of Goods Sold                             187,000,000
                                                  --------------
Gross Profit                                           6,000,000
Total MAT Expense                                     18,000,000
                                                  --------------
Operating Loss                                       (12,000,000)
Equity Earnings (Loss) from Affiliates                 2,000,000
Interest Expense, net                                 (5,000,000)
Other Income, net                                      1,000,000
Reorganization Items:
    Professional fees                                 (4,000,000)
    Provision for rejected executory contracts                 -
    Employee retention plan                           (1,000,000)
                                                  --------------
Total Reorganization Items                            (5,000,000)
                                                  --------------
Loss Before Taxes                                    (19,000,000)
Income Taxes                                                   -
                                                  --------------
NET LOSS                                            ($19,000,000)
                                                  ==============

Headquartered in St. Louis, Missouri, Solutia, Inc. --
http://www.solutia.com/-- with its subsidiaries, make and sell a  
variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications. The Company
filed for chapter 11 protection on December 17, 2003 (Bankr.
S.D.N.Y. Case No. 03-17949).  When the Debtors filed for
protection from their creditors, they listed $2,854,000,000 in
assets and $3,223,000,000 in debts. (Solutia Bankruptcy News,
Issue No. 21; Bankruptcy Creditors' Service, Inc., 215/945-7000)


SOLUTIA INC: Second Quarter Net Loss Tops $98 Million  
-----------------------------------------------------
A full-text copy of Solutia, Inc.'s Form 10-Q Report is available
for free at:

   http://www.sec.gov/Archives/edgar/data/1043382/000106880004000485/sol10q.txt

                           Solutia, Inc.
               Condensed Consolidating Balance Sheet
                        As of June 30, 2004
                            (Unaudited)

                             ASSETS

Current Assets:
    Cash and cash equivalents                        $98,000,000
    Trade receivables, net                           341,000,000
    Miscellaneous receivables                         87,000,000
    Inventories                                      248,000,000
    Prepaid expenses and other assets                 28,000,000
                                                  --------------
Total current assets                                 802,000,000

Property, plant and equipment, net                   858,000,000
Investments in affiliates                            193,000,000
Goodwill                                              97,000,000
Identified intangible assets, net                     42,000,000
Other assets                                         201,000,000
                                                  --------------
TOTAL ASSETS                                      $2,193,000,000
                                                  ==============

              LIABILITIES AND SHAREHOLDERS' DEFICIT

Current liabilities:
    Accounts payable                                $155,000,000
    Accrued liabilities                              264,000,000
    Short-term debt                                            -
                                                  --------------
Total current liabilities                            419,000,000
Long-term debt                                       599,000,000
Other liabilities                                    288,000,000
                                                  --------------
Total liabilities not subject to compromise        1,306,000,000

Liabilities subject to compromise                  2,194,000,000

Total shareholders' deficit                       (1,307,000,000)
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT       $2,193,000,000
                                                  ==============


                           Solutia, Inc.
           Condensed Consolidating Statement of Operations
                  Three Months Ended June 30, 2004

Net sales                                           $699,000,000
Cost of goods sold                                   655,000,000
                                                  --------------
Gross profit                                          44,000,000

Marketing expenses                                    40,000,000
Administrative expenses                               33,000,000
Technological expenses                                16,000,000
Amortization expense                                   1,000,000
                                                  --------------
Operating loss                                       (46,000,000)

Equity loss from affiliates                           (3,000,000)
Interest expense                                     (23,000,000)
Other income, net                                              -
Loss on debt modification                                      -
Reorganization items, net                            (24,000,000)
                                                  --------------
Loss before income tax expense (benefit)             (96,000,000)
Income tax expense (benefit)                           2,000,000
                                                  --------------
Loss from continuing operations                      (98,000,000)
Loss from discontinued operations, net of tax                  -
                                                  --------------
    NET LOSS                                        ($98,000,000)
                                                  ==============


                           Solutia, Inc.
          Condensed Consolidating Statement of Cash Flows
                  Six Months Ended June 30, 2004

Increase (decrease) in cash and cash equivalents
Operating Activities:
Net loss                                           ($198,000,000)
Adjustments to reconcile to Cash From Operations:
    Depreciation and amortization                     64,000,000
    Loss from discontinued operations, net of tax              -
    Amortization of deferred credits                 (19,000,000)
    Restructuring expenses and other charges         138,000,000
    Reorganization items, net                         49,000,000
    Other, net                                         3,000,000
    Changes in assets and liabilities:
       Income and deferred taxes                      (2,000,000)
       Trade receivables                             (60,000,000)
       Inventories                                    (8,000,000)
       Accounts payable                               77,000,000
       Liabilities subject to compromise             (27,000,000)
       Other assets and liabilities                  (21,000,000)
                                                  --------------
Cash used in operating activities                     (4,000,000)

Investing activities:
Property, plant and equipment purchases              (22,000,000)
Acquisition and investment payments                  (36,000,000)
Other investing activities                                     -
                                                  --------------
Cash provided by (used in) investing activities      (58,000,000)
                                                  --------------
Financing activities:
Net change in short-term debt obligations           (361,000,000)
Proceeds from long-term debt obligations             300,000,000
Net change in cash collateralized letters of credit   76,000,000
Deferred debt issuance costs                         (13,000,000)
Other financing activities                            (1,000,000)
                                                  --------------
Cash provided by (used in) financing activities        1,000,000
                                                  --------------

Increase (Decrease) in cash and cash equivalents     (61,000,000)

Cash and cash equivalents:
Beginning of year                                    159,000,000
                                                  --------------
End of period                                        $98,000,000
                                                  ==============

Headquartered in St. Louis, Missouri, Solutia, Inc. --
http://www.solutia.com/-- with its subsidiaries, make and sell a  
variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications. The Company
filed for chapter 11 protection on December 17, 2003 (Bankr.
S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection
from their creditors, they listed $2,854,000,000 in assets and
$3,223,000,000 in debts. (Solutia Bankruptcy News, Issue No. 21;
Bankruptcy Creditors' Service, Inc., 215/945-7000).


UNITED AIRLINES: Reports Highest-Ever July Load Factor
------------------------------------------------------
United Airlines (OTC BB: UALAQ.OB) reported its July load factor
of 84.8% in its traffic results for July 2004.  This load factor
is 1.9 points above July 2003 and the company's second-highest
ever after June 2004's load factor of 86%.  It also is the fourth
month in a row the airline has broken its load-factor record for
the month.  

United's total scheduled revenue passenger miles (RPMs)  
increased in July 2004 by 10.6% on a capacity increase of 8.2%  
available seat miles (ASMs) vs. the same period in 2003.  

                                 2004          2003      Percent
                                 July          July      Change
                                 --------      --------  -------
Scheduled Service Only:
   Revenue Plane Miles         71,284,000    66,274,000     7.6
   Number Of Departures            55,069        52,869     4.2
   Revenue Passengers           6,816,000     6,316,000     7.9

Revenue Passenger Miles (000):
   North America                7,187,793     6,616,803     8.6
   Pacific                      2,058,639     1,545,503    33.2
   Atlantic                     1,439,137     1,405,078     2.4
   Latin America                  276,719       345,666   -19.9
   System                      10,962,288     9,913,050    10.6

Available Seat Miles (000):
   North America                8,502,734     8,096,779     5.0
   Pacific                      2,452,922     1,818,340    34.9
   Atlantic                     1,641,048     1,626,285     0.9
   Latin America                  331,109       409,648   -19.2
   System                      12,927,813    11,951,052     8.2

   Passenger Load Factor (Percent):
   North America                     84.5          81.7     2.8
   Pacific                           83.9          85.0    -1.1
   Atlantic                          87.7          86.4     1.3
   Latin America                     83.6          84.4    -0.8
   System                            84.8          82.9     1.9

Cargo Ton Miles (000):
   Freight                        132,365       113,568    16.6
   Mail                            29,628        34,473   -14.1
   System                         161,993       148,041     9.4

Total System Inc Charter (000):
   Revenue Passenger Miles     10,999,538     9,934,156    10.7
   Available Seat Miles        12,972,276    11,983,206     8.3
   Revenue Psgr. Km.           17,701,557    15,987,037    10.7
   Available Seat Km.          20,876,284    19,284,573     8.3
   Total Revenue Ton Miles      1,261,846     1,141,455    10.6
   Total Avail. Ton Miles       2,036,582     1,877,620     8.5
   Total Rev. Ton Km.           1,829,650     1,654,971    10.6
   Total Avail. Ton Km.         2,973,410     2,741,325     8.5

                                      Year To Date
                                -----------------------  Percent
                                  2004           2003    Change
                                --------       --------  -------
Scheduled Service Only:
   Revenue Plane Miles        460,941,000   434,099,000     6.2
   Number Of Departures           358,054       348,678     2.7
   Revenue Passengers          41,169,000    38,299,000     7.5

Revenue Passenger Miles (000):
   North America               42,470,687    39,146,333     8.5
   Pacific                     13,303,724     9,833,496    35.3
   Atlantic                     8,813,215     7,838,858    12.4
   Latin America                2,061,824     2,219,962    -7.1
   System                      66,649,450    59,038,649    12.9

Available Seat Miles (000):
   North America               54,592,456    51,545,422     5.9
   Pacific                     15,692,501    13,465,733    16.5
   Atlantic                    10,748,733    10,113,714     6.3
   Latin America                2,652,038     3,042,443   -12.8
   System                      83,685,728    78,167,312     7.1

Passenger Load Factor (Percent):
   North America                     77.8          75.9     1.9
   Pacific                           84.8          73.0    11.8
   Atlantic                          82.0          77.5     4.5
   Latin America                     77.7          73.0     4.7
   System                            79.6          75.5     4.1

Cargo Ton Miles (000):
   Freight                        873,757       910,405    -4.0
   Mail                           212,326       222,331    -4.5
   System                       1,086,083     1,132,736    -4.1

Total System Inc Charter (000):
   Revenue Passenger Miles     67,003,107    59,514,745    12.6
   Available Seat Miles        84,117,726    78,747,297     6.8
   Revenue Psgr. Km.          107,828,726    95,777,079    12.6
   Available Seat Km.         135,370,656   126,728,025     6.8
   Total Revenue Ton Miles      7,786,419     7,084,495     9.9
   Total Avail. Ton Miles      13,257,155    12,408,327     6.8
   Total Rev. Ton Km.          11,290,210    10,273,732     9.9
   Total Avail. Ton Km.        19,355,446    18,116,157     6.8

Headquartered in Chicago, Illinois, UAL Corporation --
http://www.united.com/-- through United Air Lines, Inc., is the  
holding company for United Airlines -- the world's second largest
air carrier.  The Company filed for chapter 11 protection on
December 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M.
Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq.,
and Steven R. Kotarba, Esq., at Kirkland & Ellis represent the
Debtors in their restructuring efforts.  When the Company filed
for protection from their creditors, they listed $24,190,000,000
in assets and  $22,787,000,000 in debts. (United Airlines
Bankruptcy News, Issue No. 56; Bankruptcy Creditors' Service,
Inc., 215/945-7000)   


USG CORPORATION: Reports $21.7 Million Earnings in June 2004
------------------------------------------------------------

USG Corporation, et al.
Consolidated Balance Sheet                         30-June-2004
__________________________                         ____________

Assets:
Cash and cash equivalents                          $444,098,000
Marketable Securities                                65,171,000
Restricted Cash                                      25,606,000
Receivables                                         422,285,000
Inventories                                         309,183,000
Income taxes receivable                              20,005,000
Deferred income taxes                                43,577,000
Other current assets                                 45,536,000
                                                   -------------
Total current assets                              1,375,461,000

Property, plant and equipment, net                1,572,043,000
Marketable Securities                               210,499,000
Deferred income taxes                               148,460,000
Goodwill                                             41,201,000
Other assets                                        355,842,000
                                                   -------------
Total Assets                                     $3,703,506,000
                                                   =============

Liabilities and Stockholders' Equity:
Accounts payable                                   $240,419,000
Accrued expenses                                    184,114,000
Taxes on income                                      26,307,000
                                                   -------------
Total current liabilities                           450,840,000

Other liabilities                                   414,755,000
Liabilities subject to compromise                 2,239,383,000

Stockholders' Equity:
Common stock                                          4,998,000
Treasury stock                                     (258,035,000)
Capital received in excess of par value             101,604,000
Accumulated other comprehensive income/(loss)        13,302,000
Retained earnings                                   736,659,000
                                                   -------------
Total stockholders' equity                          598,528,000
                                                   -------------
Total Liabilities and Stockholders' Equity       $3,703,506,000
                                                   =============


USG Corporation, et al.                            Month Ending
Consolidated Income Statement                      30-June-2004
__________________________                         ____________

Net sales                                          $371,703,000

Cost of products sold                               306,175,000
Selling and administrative expenses                  23,374,000
Chapter 11 reorganization expenses                    4,368,000
Interest expense                                        322,000
Interest income                                        (156,000)
Other (income)/expense, net                             (84,000)
                                                   -------------
Earnings/(loss) before income taxes                  37,704,000

Income taxes (benefit)                               15,971,000
                                                   -------------
Net Earnings/(loss)                                 $21,733,000
                                                   =============

Headquartered in Chicago, Illinois, USG Corporation --
http://www.usg.com/-- through its subsidiaries, is a leading  
manufacturer and distributor of building materials producing a
wide range of products for use in new residential, new
nonresidential and repair and remodel construction, as well as
products used in certain industrial processes.  The Company filed
for chapter 11 protection on June 25, 2001 (Bankr. Del. Case No.
01-02094).  David G. Heiman, Esq., and Paul E. Harner, Esq., at
Jones, Day, Reavis & Pogue represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
their creditors, they listed $3,252,000,000 in assets and
$2,739,000,000 in debts. (USG Bankruptcy News, Issue No. 70;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


W.R. GRACE: Submits Amended First Quarter 2004 Financial Results
----------------------------------------------------------------
W.R. Grace & Co. amends its report on Form 10-Q for the quarterly
period ended March 31, 2004 for the restatement of its
consolidated financial statements to correct the U.S. dollar
translation of a third party's interest in a small consolidated
joint venture.

"Due to a currency conversion error, the third party interest was
mistakenly calculated at $20.0 million instead of $200,000, a
condition that was discovered as part of Grace's second quarter
2004 financial review.  The effect of this non-cash correction to
Grace's December 31, 2003 balance sheet was to increase
shareholders' equity by $19.8 million and to decrease liabilities
by the same amount.  This condition had no effect on originally
reported net loss, per share amounts, net sales, operating income
or any other element of Grace's Consolidated Statement of
Operations for the year ended December 31, 2003, or for the three
months ended March 31, 2004," W.R. Grace Chairman and Chief
Executive Officer Paul J. Norris explains.

A full-text copy of W.R. Grace's Amended Form 10-Q is available
for free at:

   http://sec.gov/Archives/edgar/data/1045309/000095013604002510/0000950136-04-002510.txt  


W. R. Grace & Co. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
====================================         Mar. 31,   Dec. 31,
Amounts in millions                              2004       2003
------------------------------------         --------   --------
ASSETS
Current Assets
Cash and cash equivalents                      $325.3     $309.2
Accounts and other receivables, net             353.8      347.5
Inventories                                     226.2      214.6
Deferred income taxes                            29.4       29.8
Other current assets                             27.4       27.8
                                             --------   --------
Total Current Assets                            962.1      928.9
Properties and equipment, net                   635.1      656.6
Goodwill                                         84.2       85.2
Cash value of life insurance policies, net       92.9       90.8
Deferred income taxes                           591.8      587.1
Asbestos-related insurance expected to be
    realized after one year                     267.8      269.4
Other assets                                    257.6      256.2
                                             --------   --------
Total Assets                                 $2,891.5   $2,874.2
                                             ========   ========

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Liabilities Not Subject to Compromise
Current Liabilities
Debt payable within one year                    $15.9       $6.8
Accounts payable                                110.1      101.8
Income taxes payable                             19.9       16.6
Other current liabilities                       111.2      129.2
                                             --------   --------
Total Current Liabilities                       257.1      254.4
Deferred income taxes                            35.1       35.3
Other liabilities                               304.4      296.0
                                             --------   --------
Total Liabilities Not Subject
    to Compromise                               596.6      585.7

Liabilities Subject to Compromise             2,447.7    2,452.3
                                             --------   --------
Total Liabilities                             3,044.3    3,038.0
                                             --------   --------
Shareholders' Equity (Deficit)
    Common stock                                  0.8        0.8
    Paid-in capital                             431.6      432.1
Accumulated deficit                            (155.1)    (170.9)
Treasury stock, at cost                        (135.2)    (135.9)
Accumulated other comprehensive loss           (294.9)    (289.9)
                                             --------   --------
Total Shareholders' Equity (Deficit)           (152.8)    (163.8)
                                             --------   --------
Total Liabilities and Shareholders'
    Equity (Deficit)                         $2,891.5   $2,874.2
                                             ========   ========


W. R. Grace & Co. and Subsidiaries
Consolidated Statements of Operations        Three Months Ended
(Unaudited)                                       March 31,
====================================         ===================
Amounts in millions                              2004       2003
------------------------------------         --------   --------
Net sales                                      $518.5     $444.8

Cost of goods sold, exclusive
    of depreciation and amortization            331.7      296.7
Selling, general & administrative
    expenses, exclusive of
    net pension expense                         102.2       91.7
Depreciation and amortization                    27.2       24.7
Research and development expenses                12.7       14.1
Net pension expense                              12.3       13.5
Interest expense & related financing costs        3.9        4.2
Provision for environmental remediation             -        2.0
                                             --------   --------
                                                486.8      441.1
(Loss) income before Chapter 11 expenses,
    income taxes and minority interest           31.7        3.7
Chapter 11 expenses, net                         (4.5)      (2.7)
Benefit from (provision for) income taxes       (10.9)      (3.1)
Minority interest in consolidated entities       (0.5)      (0.2)
                                             --------   --------
Net (loss) income                               $15.8      ($2.3)
                                             ========   ========


W. R. Grace & Co. and Subsidiaries
Consolidated Statements of Cash Flows        Three Months Ended
(Unaudited)                                       March 31,
====================================         ===================
Amounts in millions                              2004       2003
------------------------------------         --------   --------
OPERATING ACTIVITIES
(Loss) income before Chapter 11
    expenses, income taxes and minority
    interest                                    $31.7       $3.7

Reconciliation to net cash provided
by operating activities:
Depreciation and amortization                    27.2       24.7
Interest accrued on prepetition debt
    subject to compromise                         2.7        2.9
Loss (gain) on disposal of assets                 0.2        0.3

Provision for environmental remediation             -        2.0
Net income from life insurance policies          (1.5)      (3.1)
Changes in assets and liabilities:
    Working capital items                       (33.2)     (17.9)
Contributions to defined benefit
       pension plans                             (2.4)      (1.1)
Expenditures for asbestos-related
       litigation                                (2.6)      (3.1)
    Proceeds from asbestos-related insurance     (1.9)      (2.3)
Expenditures for env. remediation                 1.6        1.1
Expenditures for postretirement benefits         (2.9)      (3.1)
Expenditures for retained obligations
       of discontinued operations                (0.4)         -
Changes in accruals and other
       non-cash items                            14.5       13.7
                                             --------   --------
Net cash provided by operating activities
before income taxes and Chapter 11 expenses      33.0       17.8

Chapter 11 expenses paid, net                    (2.0)      (3.8)
Income taxes paid, net of refunds               (10.3)      (4.3)
                                             --------   --------
Net cash provided by operating activities        20.7        9.7

INVESTING ACTIVITIES
Capital expenditures                             (9.1)     (18.0)
Investment in life insurance policies            (4.6)      (4.9)
Proceeds from life insurance policies             5.3        3.6
Proceeds from sales of investments                0.1        0.7
                                             --------   --------
Net cash used for investing activities           (8.3)     (18.6)

FINANCING ACTIVITIES
Net payments of loans secured by cash  
    value of life insurance policies             (1.3)      (0.9)
Borrowings under credit facilities, net           8.9       (0.6)
Borrowings under DIP facility, net               (0.5)      (2.2)
Repayment of borrowings under DIP facility          -          -
                                             --------   --------
Net cash used for financing activities            7.1       (3.7)

Effect of currency exchange rate changes
    on cash and cash equivalents                 (3.4)       4.4
                                             --------   --------
Increase in cash and cash equivalents            16.1       (8.2)

Cash & cash equivalents, beginning of period    309.2      283.6
                                             --------   --------
Cash & cash equivalents, end of period         $325.3     $275.4
                                             ========   ========

Headquartered in Columbia, Maryland, W.R. Grace & Co., --
http://www.grace.com/-- supplies catalysts and silica products,  
especially construction chemicals and building materials, and
container products globally.  The Debtors filed for chapter 11
protection on April 2, 2001 (Bankr. Del. Case No: 01-01139).  
James H.M. Sprayregen, Esq., at Kirkland & Ellis and Laura Davis
Jones, Esq., at Pachulski, Stang, Ziehl et al. represent the
Debtors in their restructuring efforts.  (W.R. Grace Bankruptcy
News, Issue No. 69; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


W.R. GRACE: Submits Amended Second Quarter 2004 Financial Results
-----------------------------------------------------------------
On August 9, 2004, W.R. Grace & Co. filed its Form 10-Q for the
quarter ended June 30, 2004 with the Securities and Exchange
Commission.

A full-text copy of W.R. Grace's Form 10-Q is available for free
at:

   http://sec.gov/Archives/edgar/data/1045309/000095013604002506/0000950136-04-002506.txt


W. R. Grace & Co. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
==================================           June 30,  Dec. 31,
Amounts in millions                            2004      2003
----------------------------------           --------  --------
ASSETS
Current Assets
Cash and cash equivalents                      $371.7    $309.2
Accounts and other receivables, net             400.8     347.5
Inventories                                     224.3     214.6
Deferred income taxes                            29.5      29.8
Other current assets                             22.6      27.8
                                              --------  --------
Total Current Assets                          1,048.9     928.9

Properties and equipment, net                   621.7     656.6
Goodwill                                         84.8      85.2
Cash value of life insurance policies, net       96.6      90.8
Deferred income taxes                           613.7     587.1
Asbestos-related insurance expected to be
     realized after one year                    264.0     269.4
Other assets                                    257.3     256.2
                                              --------  --------
Total Assets                                 $2,987.0  $2,874.2
                                              ========  ========

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Liabilities Not Subject to Compromise
Current Liabilities
Debt payable within one year                    $13.0      $6.8
Accounts payable                                114.8     101.8
Income taxes payable                             25.3      16.6
Other current liabilities                       145.4     129.2
                                              --------  --------
Total Current Liabilities                       298.5     254.4

Deferred income taxes                            34.3      35.3
Unfunded defined benefit pension liability      315.6     278.5
Other liabilities                                60.2      17.5
                                              --------  --------
Total Liabilities Not Subject to Compromise     708.6     585.7

Liabilities Subject to Compromise             2,447.5   2,452.3
                                              --------  --------
Total Liabilities                             3,156.1   3,038.8
                                              --------  --------

Shareholders' Equity (Deficit)
     Common stock                                 0.8       0.8
     Paid-in capital                            430.5     432.1
Accumulated deficit                            (133.8)   (170.9)
Treasury stock, at cost                        (133.9)   (135.9)
Accumulated other comprehensive loss           (332.7)   (289.9)
                                              --------  --------
Total Shareholders' Equity (Deficit)           (169.1)   (163.8)
                                              --------  --------
Total Liabilities and Shareholders'
     Equity (Deficit)                        $2,987.0  $2,874.2
                                              ========  ========


W. R. Grace & Co. and Subsidiaries
Consolidated Statement of Operations         Three Months Ended
(Unaudited)                                        June 30,
==================================           ==================
Amounts in millions                              2004      2003
----------------------------------           --------  --------
Net sales                                      $572.4    $503.4

Cost of goods sold, exclusive of
     depreciation and amortization              357.6     329.7
Selling, general and administrative
     expenses, exclusive of
     net pension expense                        112.2      94.7
Depreciation and amortization                    26.3      25.3
Research and development expenses                13.0      14.2
Net pension expense                              14.9      13.2
Interest expense and related financing costs      3.9       4.1
Other (income) expense                            4.6      (2.1)
Provision for environmental remediation           -         0.5
                                              --------  --------
                                                532.5     479.6
(Loss) Income before Chapter 11 expenses,
     income taxes and minority interest          39.9      23.8
Chapter 11 expenses, net                         (3.0)     (6.8)
Provision for income taxes                      (13.0)    (10.2)
Minority interest in consolidated entities       (2.6)     (0.3)
                                              --------  --------
Net (loss) income                               $21.3      $6.5
                                              ========  ========


W. R. Grace & Co. and Subsidiaries
Consolidated Statement of Cash Flows           Six Months Ended
(Unaudited)                                        June 30,
==================================           ==================
Amounts in millions                              2004      2003
----------------------------------           --------  --------
OPERATING ACTIVITIES
(Loss) Income before Chapter 11
     expenses, income taxes and minority
     interest                                   $71.6     $27.5
Reconciliation to net cash provided
by operating activities:

Depreciation and amortization                    53.5      50.0
Interest accrued on pre-petition debt
     subject to compromise                        5.4       5.8
Loss on sale of investments and
     disposals of assets                          0.3       0.9
Provision for environmental remediation           -         2.5
Net income from life insurance policies          (2.2)     (4.3)
Changes in assets and liabilities:
     Working capital items                      (41.6)    (42.2)
Contributions to defined benefit
     pension plans                               (5.2)     (3.0)
Contributions to postretirement
     benefit plans                               (5.5)     (5.7)
Expenditures for asbestos-related litigation     (3.8)     (5.8)
Proceeds from asbestos-related insurance          5.4      10.2
Expenditures for environmental remediation       (2.9)     (6.0)
Expenditures for retained obligations of
     discontinued operations                     (0.7)     (0.7)
Changes in accruals and other
     non-cash items                              31.4      28.4
                                              --------  --------
Net cash provided by operating activities
before income taxes and Chapter 11 expenses     105.7      57.6

Chapter 11 expenses paid, net                    (6.1)    (10.2)
Income taxes paid, net of refunds               (13.8)    (11.7)
                                              --------  --------
Net cash provided by operating activities        85.8      35.7

INVESTING ACTIVITIES
Capital expenditures                            (22.5)    (44.8)
Business acquired, net of cash acquired           -        (2.2)
Investment in life insurance policies           (11.4)     (9.1)
Proceeds from life insurance policies            10.5       5.4
Proceeds from sales of investments
     and disposals of assets                      1.3       0.8
                                              --------  --------
Net cash used for investing activities          (22.1)    (49.9)

FINANCING ACTIVITIES
Net payments of loans secured by cash
     value of life insurance policies            (2.7)     (1.4)
Borrowings under credit facilities, net           6.3       4.7
Borrowings under DIP facility, net               (1.0)     27.0
Repayment of borrowings under DIP facility        -         -
Exercise of stock options                         0.2       -
                                              --------  --------
Net cash provided by financing activities         2.8      30.3
                                              --------  --------

Effect of currency exchange rate changes
     on cash and cash equivalents                (4.0)     18.2
                                              --------  --------
Increase (decrease) in cash and
     cash equivalents:                           62.5      34.3

Cash and cash equivalents, beginning of period  309.2     283.6
                                              --------  --------
Cash and cash equivalents, end of period       $371.7    $317.9
                                              ========  ========

Headquartered in Columbia, Maryland, W.R. Grace & Co., --
http://www.grace.com/-- supplies catalysts and silica products,  
especially construction chemicals and building materials, and
container products globally.  The Debtors filed for chapter 11
protection on April 2, 2001 (Bankr. Del. Case No: 01-01139).  
James H.M. Sprayregen, Esq., at Kirkland & Ellis and Laura Davis
Jones, Esq., at Pachulski, Stang, Ziehl et al. represent the
Debtors in their restructuring efforts.  (W.R. Grace Bankruptcy
News, Issue No. 69; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


W.R. GRACE: Reports Amended 4th Qtr. & Year-End Financial Results
-----------------------------------------------------------------
W.R. Grace & Co. amends its report on Form 10-K for the fiscal
year ended December 31, 2003 for the restatement of its
consolidated financial statements to correct the balance sheet,
statement of shareholders' equity, statement of cash flows, and
statement of comprehensive income, for the U.S. dollar
translation of a third party's interest in a small consolidated
joint venture.

In a regulatory filing with the Securities and Exchange
Commission dated August 9, 2004, W.R. Grace Chairman and Chief
Executive Officer Paul J. Norris reports that due to a currency
conversion error, the third party interest was mistakenly
calculated at $20.0 million instead of $200,000, a condition that
was discovered as part of Grace's second quarter 2004 financial
review.  "The effect of this non-cash correction to Grace's
December 31, 2003 balance sheet was to increase shareholders'
equity by $19.8 million and to decrease liabilities by the same
amount.  This condition had no effect on originally reported net
loss, per share amounts, net sales, operating income or any other
element of Grace's Consolidated Statement of Operations for the
year ended December 31, 2003 or on any of the financial
statements for the interim quarters in 2003," Mr. Norris
explains.

A full-text copy of W.R. Grace's Amended Form 10-K is available
for free at:

   http://sec.gov/Archives/edgar/data/1045309/000095013604002507/0000950136-04-002507.txt


W. R. Grace & Co. and Subsidiaries
Consolidated Balance Sheet
(Unaudited)                                    December 31,
====================================        ===================
Amounts in millions                           2003       2002
------------------------------------        --------   --------
ASSETS
Current Assets
Cash and cash equivalents                      $309.2     $283.6
Accounts and other receivables, net             347.5      316.6
Inventories                                     214.6      173.6
Deferred income taxes                            29.8       20.6
Other current assets                             27.8       35.9
                                             --------   --------
Total Current Assets                            928.9      830.3

Properties and equipment, net                   656.6      622.2
Goodwill                                         85.2       65.2
Cash value of life insurance policies, net       90.8       82.4
Deferred income taxes                           587.1      574.1
Asbestos-related insurance expected to be
   realized after one year                      269.4      282.6
Other assets                                    256.2      234.9
                                             --------   --------
Total Assets                                 $2,874.2   $2,691.7
                                             ========   ========

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Liabilities Not Subject to Compromise
Current Liabilities
Debt payable within one year                     $6.8       $4.3
Accounts payable                                101.8      100.3
Income taxes payable                             16.6       11.4
Other current liabilities                       129.2      131.3
                                             --------   --------
Total Current Liabilities                       254.4      247.3

Deferred income taxes                            35.3       30.5
Other liabilities                               296.0      301.4
                                             --------   --------
Total Liabilities Not Subject
   to Compromise                                585.7      579.2

Liabilities Subject to Compromise             2,452.3    2,334.7
                                             --------   --------
Total Liabilities                             3,038.0    2,913.9
                                             --------   --------
Shareholders' Equity (Deficit)
   Common stock                                   0.8        0.8
   Paid-in capital                              432.1      433.0
Accumulated deficit                            (170.9)    (115.7)
Treasury stock, at cost                        (135.9)    (137.0)
Accumulated other comprehensive loss           (289.9)    (403.3)
                                             --------   --------
Total Shareholders' Equity (Deficit)           (163.8)    (222.2)
                                             --------   --------
Total Liabilities and Shareholders'
    Equity (Deficit)                         $2,874.2   $2,691.7
                                             ========   ========


W. R. Grace & Co. and Subsidiaries
Consolidated Statement of Operations            Year Ended
(Unaudited)                                    December 31,
====================================        ===================
Amounts in millions, except per               2003       2002
share amounts
------------------------------------        --------   --------
Net sales                                    $1,980.5   $1,819.7
Other income                                     16.7       22.5
                                             --------   --------
                                              1,997.2    1,842.2

Cost of goods sold, exclusive
    of depreciation and amortization          1,289.8    1,148.1
Selling, general & administrative
    expenses, exclusive of
    net pension expense                         365.6      345.1
Depreciation and amortization                   102.9       94.9
Research and development expenses                52.0       51.5
Net pension expense                              52.7       19.5
Interest expense & related financing costs       15.6       20.0
Provision for environmental remediation         142.5       70.7
Provision for asbestos related claims            30.0         --
                                             --------   --------
                                              2,051.1    1,749.8

(Loss) income before Chapter 11 expenses,
    income taxes and minority interest          (53.9)      92.4
Chapter 11 expenses, net                        (14.8)     (30.1)
Benefit from (provision for) income taxes        12.3      (38.0)
Minority interest in consolidated entities        1.2       (2.2)
                                             --------   --------
Net (loss) income                              ($55.2)     $22.1
                                             ========   ========


W. R. Grace & Co. and Subsidiaries
Consolidated Statement of Cash Flows             Year Ended
(Unaudited)                                    December 31,
====================================        ===================
Amounts in millions                           2003       2002
------------------------------------        --------   --------
OPERATING ACTIVITIES
(Loss) income before Chapter 11
    expenses, income taxes and minority
    interest                                   ($53.9)     $92.4

Reconciliation to net cash provided
by operating activities:

Depreciation and amortization                   102.9       94.9
Interest accrued on prepetition debt
    subject to compromise                        11.2       14.5
Loss (gain) on disposal of assets                 1.5       (1.9)
Provision for environmental remediation         142.5       70.7
Provision for asbestos-related claims            30.0         --
Net income from life insurance policies          (5.6)      (4.7)
Changes in assets and liabilities:
    Working capital items                       (42.3)      22.2
    Contributions to defined benefit
       pension plans                            (60.5)     (10.2)
    Contributions to post-retirement plans      (12.6)     (21.5)
    Expenditures for asbestos-related
       litigation                               (10.4)     (13.1)
    Proceeds from asbestos-related insurance     13.2       10.8
    Expenditures for env. remediation           (11.2)     (20.8)
    Expenditures for retained obligations
       of discontinued operations                (1.3)      (4.5)
    Pension expense and other non-cash items     52.0       25.6
                                             --------   --------
Net cash provided by operating activities
before income taxes and Chapter 11 expenses     155.5      254.4

Chapter 11 expenses paid, net                   (17.5)     (27.1)
Income taxes paid, net of refunds               (27.2)     (31.8)
                                             --------   --------
Net cash provided by operating activities       110.8      195.5

INVESTING ACTIVITIES
Capital expenditures                            (86.4)     (91.1)
Businesses acquired in purchase
    transactions, net of cash acquired          (26.9)     (28.5)
Investment in life insurance policies           (11.6)     (16.4)
Proceeds from life insurance policies            11.9       19.4
Proceeds from sales of investments
    and disposals of assets                       3.9        5.9
                                             --------   --------
Net cash used for investing activities         (109.1)    (110.7)

FINANCING ACTIVITIES
Net payments of loans secured by cash
    value of life insurance policies             (3.1)      (5.1)
Borrowings under credit facilities, net           2.3       (2.8)
Borrowings under DIP facility, net               46.1       18.7
epayment of borrowings under DIP facility       (50.0)     (20.0)
                                             --------   --------
Net cash used for financing activities           (4.7)      (9.2)

Effect of currency exchange rate changes
    on cash and cash equivalents                 28.6       16.1
                                             --------   --------
Increase in cash and cash equivalents            25.6       91.7

Cash & cash equivalents, beginning of period    283.6      191.9
                                             --------   --------
Cash & cash equivalents, end of period         $309.2     $283.6
                                             ========   ========

Headquartered in Columbia, Maryland, W.R. Grace & Co., --
http://www.grace.com/-- supplies catalysts and silica products,  
especially construction chemicals and building materials, and
container products globally.  The Debtors filed for chapter 11
protection on April 2, 2001 (Bankr. Del. Case No: 01-01139).  
James H.M. Sprayregen, Esq., at Kirkland & Ellis and Laura Davis
Jones, Esq., at Pachulski, Stang, Ziehl et al. represent the
Debtors in their restructuring efforts.  (W.R. Grace Bankruptcy
News, Issue No. 69; Bankruptcy Creditors' Service, Inc., 215/945-
7000)


WESTPOINT STEVENS: 2nd Quarter Net Loss Narrows to $24 Million
--------------------------------------------------------------
WestPoint Stevens Inc. (OTC Bulletin Board: WSPT) reported results
for the second quarter ended June 30, 2004.

The Company's net sales for the second quarter of 2004 increased
4.7% to $383.0 million compared with $365.7 million a year ago.  
Bed Product sales decreased 3% due to slower sales of bedding
accessories, Bath Product sales increased 29% given WestPoint
Stevens increased market share due to a competitor's liquidation,
and Other (Mill Stores and International) sales decreased,
primarily from a reduction in the Company's mill store sales as a
result of restructuring initiatives that have reduced the total
number of retail stores to 37 from 57 in the year ago period.  
Furthermore, one of the Company's foreign subsidiaries, WestPoint
Stevens (Europe) Ltd., filed for bankruptcy in the United Kingdom
in August of 2003 and is in the process of liquidating.  WestPoint
Stevens Stores' same-store sales increased 7% for the remaining
stores in the second quarter of 2004 versus the year ago period.

Net income for the second quarter of 2004 was a loss of $24.0
million compared with a loss of $72.0 million in 2003.

Loss before taxes for the second quarter of 2004 was $33.1 million
compared with a loss before taxes in 2003 of $106.8 million.  
Included in the second quarter of 2004 were $9.0 million in
expenses related to the Company's restructuring initiatives, and
$8.4 million in expenses related to the current bankruptcy
proceedings compared with $16.6 million in expenses in the second
quarter of 2003 related to WestPoint Stevens previously announced
restructuring initiatives and $6.2 million in expenses related to
the current bankruptcy proceedings.

M. L. "Chip" Fontenot, WestPoint Stevens President and CEO,
commented, "The retail environment was more challenging for home  
fashions in the second quarter as retailers experienced slower  
sales growth in textile home furnishings.  Nevertheless, we  
increased our market share in bath products in the quarter and  
are maintaining the high service levels that our customers expect  
from WestPoint Stevens.  Furthermore, we remain adequately funded  
with availability under our $300 million debtor-in-possession  
facility of $120 million at the end of the second quarter."

Mr. Fontenot continued, "The Company is in the final stages of
revising its business plan and is continuing to move forward on a
consensual basis with negotiating new terms for a Chapter 11 plan
of reorganization with all its major creditor constituencies.  On
July 30, the Company received an additional extension of its
exclusive period to file such a plan through October 1, 2004."

A full-text copy of WestPoint Stevens' Second Quarter 2004
Report is available for free at the Securities and Exchange
Commission at:

   http://www.sec.gov/Archives/edgar/data/852952/000085295204000014/wpst0604q.htm  


                     WESTPOINT STEVENS, INC.
              Condensed Consolidated Balance Sheets
                         At June 30, 2004

                              Assets

Current Assets
   Cash and cash equivalents                        $10,096,000
   Accounts receivable                              229,872,000
   Inventories                                      417,291,000
   Prepaid expenses and other current assets         20,157,000
                                                 --------------
Total current assets                                677,416,000

Property, Plant and Equipment, net                  592,264,000

Other Assets
   Deferred financing fees                            6,082,000
   Other assets                                       1,110,000
                                                 --------------
TOTAL ASSETS                                     $1,276,872,000
                                                 ==============

            Liabilities and Stockholders' Equity (Deficit)

Current Liabilities
   Senior Credit Facility                          $486,419,000
   Second-Lien Facility                             165,000,000
   DIP Credit Agreement                             136,137,000
   Accrued interest payable                           5,611,000
   Accounts payable                                  51,974,000
   Other accrued liabilities                        140,638,000
                                                 --------------
Total current liabilities                           985,779,000

Non-current Liabilities
   Deferred income taxes                              5,373,000
   Pension and other liabilities                    144,994,000
                                                 --------------
Total non-current liabilities                       150,367,000

Liabilities Subject to Compromise                 1,087,450,000

Stockholders' Equity (Deficit)                     (946,724,000)
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $1,276,872,000
                                                 ==============


                     WESTPOINT STEVENS, INC.
          Condensed Consolidated Statements of Income
                Three Months Ended June 30, 2004

Net sales                                          $382,992,000
Cost of goods sold                                  330,667,000
                                                 --------------
   Gross earnings (loss)                             52,325,000

Selling, general and administrative expenses         56,292,000
Restructuring and impairment charge                   3,473,000
Goodwill impairment charge                                    -
                                                 --------------
   Operating earnings (loss)                         (7,440,000)

Interest expense                                     19,099,000
Other expense (income)-net                           (1,820,000)
Chapter 11 expenses                                   8,383,000
                                                 --------------
Income (loss) before income tax expense (benefit)   (33,102,000)

Income tax expense (benefit)                         (9,108,000)
                                                 --------------
   Net income (loss)                               ($23,994,000)
                                                 ==============


                     WESTPOINT STEVENS, INC.
         Condensed Consolidated Statements of Cash Flows
                 Six Months Ended June 30, 2004

Cash flows from operating activities:
   Net loss                                        ($38,873,000)
   Adjustments to reconcile net loss to net cash
    provided by (used for) operating activities:
       Depreciation and other amortization           33,300,000
       Deferred income taxes                        (15,439,000)
       Changes in working capital                   (17,667,000)
       Other-net                                      5,837,000
       Non-cash component of restructuring
          and impairment charge                       1,818,000
       Goodwill impairment charge                             -
                                                 --------------
Net cash used for operating activities              (31,024,000)

Cash flows from investing activities:
   Capital expenditures                             (10,883,000)
   Net proceeds from sale of assets                   5,493,000
                                                 --------------
Net cash used for investing activities               (5,390,000)

Cash flows from financing activities:
   Senior Credit Facility:
      Borrowings                                              -
      Repayments                                     (4,270,000)
   DIP Credit Agreement:
      Borrowings                                    426,120,000
      Repayments                                   (379,000,000)
      Fees associated with DIP Credit Agreement               -
      Trade Receivables Program                               -
                                                 --------------
Net cash provided by financing activities            42,850,000

Net increase in cash and cash equivalents             6,436,000

Cash and cash equivalents at beginning of period      3,660,000
                                                 --------------
Cash and cash equivalents at end of period          $10,096,000
                                                 ==============

Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed  
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores.  Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens.  The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)  


WESTPOINT STEVENS: Reports $14.2 Million Net Loss in June 2004
--------------------------------------------------------------

                     WESTPOINT STEVENS, INC.
                          Balance Sheet
                        At June 30, 2004
                         (in thousands)

                              Assets

Current Assets
   Cash and cash equivalents                             $4,823
   Short-term investments                                     -
   Accounts receivable, net                             222,082
   Inventories                                          380,441
   Prepaid expenses and other current assets             19,662
                                                     ----------
Total current assets                                    627,008

Total investments and other assets                      124,279
Goodwill                                                      -
Property, Plant and Equipment, net                      576,342
                                                     ----------
TOTAL ASSETS                                         $1,327,629
                                                     ==========
  
          Liabilities and Stockholders' Equity (Deficit)

Liabilities Not Subject to Compromise:
   Senior Credit Facility                              $440,730
   DIP Credit Agreement                                 136,137
   Second lien facility                                 165,000
   Accrued interest payable                               5,611
   Accounts payable - trade                              50,712
   Accounts payable - intercompany                      146,964
   Other accrued liabilities                            124,665
   Deferred income taxes                                  5,373
   Pension and other liabilities                        141,549
                                                     ----------
Total liabilities not subject to compromise           1,216,741

Liabilities Subject to Compromise
   Senior notes                                       1,000,000
   Deferred financing fees                               (5,905)
   Accrued interest payable on Senior Notes              36,130
   Accounts payable                                      27,069
   Other payables and accrued liabilities                 8,238
   Pension and other liabilities                         18,844
                                                     ----------
Total liabilities not subject to compromise           1,084,376
                                                     ----------
Total Liabilities                                     2,301,117

Shareholders' Equity (Deficit)
   Equity of subsidiaries                              (123,757)
   Common stock                                             711
   Capital surplus/Treasury Stock                        51,436
   Retained earnings (deficit)                         (785,597)
   Minimum pension liability adjustment                (101,921)
   Other adjustments                                    (14,360)
   Unearned compensation                                      -
                                                     ----------
Stockholders' Equity (Deficit)                         (973,488)
                                                     ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)   $1,327,629
                                                     ==========
  

                     WESTPOINT STEVENS, INC.
                     Statement of Operations
                    Month Ended June 30, 2004
                          (in thousands)

Total sales                                            $117,295
Cost of sales                                           103,987
                                                     ----------
   Gross profit                                          13,308

Selling and administrative expenses
   Selling expenses                                       3,896
   Warehousing and shipping                               6,129
   Advertising                                              410
   Division administrative expense                          937
   MIS expense                                            1,508
   Corporate administrative expense                       1,289
                                                     ----------
Total selling and administrative expense                 14,169

Restructuring and impairment charge                       3,473
Goodwill impairment charge                                    -
                                                     ----------
   Profit (loss) from operations                         (4,334)

Interest expense
   Interest expense - outside                             5,841
   Capitalized interest expense                               -
   Interest expense - intercompany                          227
   Interest income                                           24
   Interest income - intercompany                             -
                                                     ----------
Net interest expense                                      6,044

Other expense
   Miscellaneous                                          1,843
   Royalties - intercompany                               3,700
   Transaction gain/loss                                      -
                                                     ----------
   Total other expense                                    5,543

Other income
   Royalties - intercompany                                   -
   Dividends                                                  -
   Sale of assets                                             -
   Miscellaneous                                              2
                                                     ----------
   Total other income                                         2
                                                     ----------
Net other expense                                         5,541
                                                     ----------
Income (loss) before Chapter 11 reorganization
   expenses and income taxes (benefit) and
   extraordinary items                                  (15,919)

Chapter 11 reorganization expenses                        3,783

Income tax expense (benefit)                             (5,476)

Extraordinary item - net of taxes                             -
                                                     ----------
Net Income (loss)                                      ($14,226)
                                                     ==========


                     WESTPOINT STEVENS, INC.
                     Statement of Cash Flows
                    Month Ended June 30, 2004
                          (in thousands)

Cash flows from operations:
Net income (loss)                                      ($14,226)
   Restructuring                                          1,818
   Equity adjustments                                    (3,738)
   Depreciation and amortization expense                  4,892
   Gain on sale of assets                                     -
Working Capital Changes
   Decrease/(increase) - accounts receivable             (1,193)
   Decrease/(increase) - inventories                     13,746
   Decrease/(increase) - other current assets             3,244
   Decrease/(increase) - other non-current
      assets & debts                                      1,313
   Increase/(decrease) - accounts payable (trade)          (748)
   Increase/(decrease) - a/p (intercompany)               1,516
   Increase/(decrease) - accrued liabilities             16,633
   Increase/(decrease) - accrued interest payable         1,391
   Increase/(decrease) - pension and other liabilities    1,438
   Increase/(decrease) - deferred federal income tax    (11,837)
                                                     ----------
Total cash flows from operations                         14,249

Cash flows from investing activities:
   Capital expenditures                                  (1,839)
   Transfers                                               (214)
   Net proceeds from sale of assets                           -
                                                     ----------
Total cash flows from investing                          (2,053)

Cash flows from financing activities:
   Increase/(decrease)- DIP Credit Agreement             (9,506)
                                                     ----------
Total cash flows from financing                          (9,506)

Beginning cash balance                                    2,133
Change in cash                                            2,690
                                                     ----------
Ending cash balance                                      $4,823
                                                     ==========

Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed  
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores.  Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens.  The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)  


WESTPOINT STEVENS: JP Stevens & Co.'s June 2004 Operating Report
----------------------------------------------------------------

                    J.P. STEVENS & CO., INC.
                          Balance Sheet
                        At June 30, 2004
                          (in thousands)

                              Assets

Current Assets
   Cash and cash equivalents                                  -
   Accounts receivable - intercompany                  $110,738
   Prepaid expenses and other current assets                 11
                                                     ----------  
Total current assets                                    110,749  
  
Total investments & other assets                          2,697  
Goodwill                                                      -  
                                                     ----------
TOTAL ASSETS                                           $113,446
                                                     ==========

          Liabilities and Stockholders' Equity (Deficit)

Liabilities Not Subject to Compromise
   Accounts payable - intercompany                            -
   Other accrued liabilities                                  -
   Deferred income taxes                                      -
   Pension and other liabilities                              -
                                                     ----------
Total Liabilities Not Subject to Compromise                   -

Liabilities Subject to Compromise                             -

Shareholders' Equity (Deficit)
   Equity of subsidiaries                               $10,503
   Common stock                                               -
   Capital surplus/Treasury Stock                             -
   Retained earnings (deficit)                          102,943
   Minimum pension liability adjustment                       -
   Other adjustments                                          -
   Unearned compensation                                      -
                                                     ----------
Stockholders' Equity (Deficit)                          113,446
                                                     ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)     $113,446
                                                     ==========
  
J.P. Stevens & Co., Inc., reports no income or cash flow for   
June 2004.

Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed  
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores.  Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens.  The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)  


WESTPOINT STEVENS: JP Stevens Enterprises' June Operating Report
----------------------------------------------------------------

                  J.P. STEVENS ENTERPRISES, INC.
                          Balance Sheet
                         At June 30, 2004
                          (in thousands)

                              Assets
  
Current Assets
   Cash and cash equivalents                                $18
   Accounts receivable - intercompany                    16,060
   Prepaid expenses and other current assets                  -
                                                     ----------
Total current assets                                     16,078

Total investments & other assets                              -
Goodwill                                                      -
                                                     ----------
TOTAL ASSETS                                            $16,078
                                                     ==========

          Liabilities and Stockholders' Equity (Deficit)

Liabilities Not Subject to Compromise:
   Accounts payable - intercompany                            -
   Other accrued liabilities                               $173
   Deferred income taxes                                      -
   Pension and other liabilities                              -
                                                     ----------
Total Liabilities Not Subject to Compromise                 173

Liabilities Subject to Compromise                             -
                                                     ----------
Total liabilities                                           173

Shareholders' Equity (Deficit)
   Equity of subsidiaries                                     -
   Common stock                                               2
   Capital surplus/Treasury Stock                             -
   Retained earnings (deficit)                           15,903
   Minimum pension liability adjustment                       -
   Other adjustments                                          -
   Unearned compensation                                      -
                                                     ----------
Stockholders' Equity (Deficit)                           15,905
                                                     ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)      $16,078
                                                     ==========
  
  
                  J.P. STEVENS ENTERPRISES, INC.
                     Statement of Operations
                    Month Ended June 30, 2004
                          (in thousands)

Net sales                                                     -
Cost of goods sold                                            -
                                                     ----------
   Gross earnings                                             -

Selling and administrative expenses
   Selling expenses                                          $2
   Warehousing and shipping                                   -
   Advertising                                                -
   Division administrative expense                            -
   MIS expense                                                -
   Corporate administrative expense                           -
                                                     ----------
Total selling and administrative expense                      2

Restructuring and impairment charge                           -
Goodwill impairment charge                                    -
                                                     ----------
   Operating earnings (loss)                                 (2)

Interest expense
   Interest expense - outside                                 -
   Capitalized interest expense                               -
   Interest expense - intercompany                            -
   Interest income                                            -
   Interest income - intercompany                            60
                                                     ----------
Net interest expense                                        (60)

Other expense
   Miscellaneous                                              -
   Royalties - intercompany                                   -
   Transaction gain/loss                                      -
                                                     ----------
Total other expense                                           -

Other income
   Royalties - intercompany                                 175
   Dividends                                                  -
   Sale of assets                                             -
   Miscellaneous                                              -
                                                     ----------
Total other income                                          175
                                                     ----------
Net other expense                                          (175)
                                                     ----------
Income (loss) before Chapter 11 reorganization
   expenses and income taxes (benefit) and
   extraordinary items                                      233

Chapter 11 reorganization expenses                            -

Income tax expense (benefit)                                 81

Extraordinary item - net of taxes                             -
                                                     ----------
   Net Income (loss)                                       $152
                                                     ==========


                  J.P. STEVENS ENTERPRISES, INC.
                     Statement of Cash Flows
                    Month Ended June 30, 2004
                          (in thousands)

Cash flows from operations:
Net income (loss)                                          $152
Non-cash items
   Depreciation and amortization                              -
Working Capital Changes
   Decrease/(increase) - a/r (intercompany)                 (69)
   Decrease/(increase) - inventories                          -
   Decrease/(increase) - other current assets                 -
   Decrease/(increase) - other non-current assets             -
   Increase/(decrease) - accounts payable (trade)             -
   Increase/(decrease) - a/p (intercompany)                   -
   Increase/(decrease) - accrued liabilities               (100)
   Increase/(decrease) - accrued interest payable             -
   Increase/(decrease) - pension & other liabilities          -
   Increase/(decrease) - deferred federal income tax          -
                                                     ----------
Total cash flows from operations                            (17)

Cash flows from investing activities
   Capital expenditures                                       -
   Net proceeds from sale of assets                           -
                                                     ----------
Total cash flows from investing                               -

Cash flows from financing activities
   Increase/(decrease)- DIP Credit Agreement                  -
                                                     ----------
Total cash flows from financing                               -

Beginning cash balance                                       35
Change in cash                                              (17)
                                                     ----------
Ending cash balance                                         $18
                                                     ==========

Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed  
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores.  Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens.  The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)  


WESTPOINT STEVENS: WP Stevens I Posts $3.2 Million Income in May
----------------------------------------------------------------

                   WESTPOINT STEVENS, INC., I
                          Balance Sheet
                        At June 30, 2004
                         (in thousands)

                              Assets

Current Assets
   Cash and cash equivalents                               $143
   Accounts receivable - intercompany                         -
   Inventories                                           14,262
   Prepaid expenses and other current assets                  -
                                                     ----------
Total current assets                                     14,405

Total investments and other assets                      124,052
Property, Plant and Equipment, net                       12,596
Goodwill                                                      -
                                                     ----------
TOTAL ASSETS                                           $151,053
                                                     ==========
  
          Liabilities and Stockholders' Equity (Deficit)

Liabilities Not Subject to Compromise
   Senior Credit Facility                                     -
   DIP Credit Agreement                                       -
   Long-term debt classified as current                       -
   Accrued interest payable                                   -
   Accounts payable - trade                                $759
   Accounts payable - intercompany                        4,844
   Other accrued liabilities                              8,132
   Deferred income taxes                                      -
   Pension and other liabilities                              -
                                                     ----------
Total Liabilities Not Subject to Compromise              13,735

Liabilities Subject to Compromise
   Senior notes                                               -
   Deferred financing fees                                    -
   Accrued interest payable on Senior Notes                   -
   Accounts payable                                       1,400
   Other payables and accrued liabilities                     -
   Pension and other liabilities                              -
                                                     ----------
Total Liabilities Subject to Compromise                   1,400
                                                     ----------
Total liabilities                                        15,135

Shareholders' Equity (Deficit)  
   Equity of subsidiaries                                     -
   Common stock                                               1
   Capital surplus/Treasury Stock                        70,559
   Retained earnings (deficit)                           65,358
   Minimum pension liability adjustment                       -
   Other adjustments                                          -
   Unearned compensation                                      -
                                                     ----------
Shareholders' Equity (Deficit)                          135,918
                                                     ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)     $151,053
                                                     ==========


                   WESTPOINT STEVENS, INC., I
                     Statement of Operations
                    Month Ended June 30, 2004
                         (in thousands)

Net sales                                                $3,410
Cost of goods sold                                        2,016
                                                     ----------
   Gross earnings                                         1,394

Selling and administrative expenses
   Selling expenses                                           2
   Warehousing and shipping                                 201
   Advertising                                                -
   Division administrative expense                            -
   MIS expense                                                -
   Corporate administrative expense                         170
                                                     ----------
Total selling and administrative expense                    373

Restructuring and impairment charge                           -
Goodwill impairment charge                                    -
                                                     ----------
   Operating earnings (loss)                              1,021

Interest expense
   Interest expense - outside                                 -
   Capitalized interest expense                               -
   Interest expense - intercompany                            -
   Interest income                                            -
   Interest income - intercompany                           300
                                                     ----------
Net interest expense                                       (300)

Other expense  
   Miscellaneous                                              -
   Royalties - intercompany                                 190
   Transaction gain/loss                                      -
                                                     ----------
Total other expense                                         190

Other income
   Royalties - intercompany                               3,806
   Dividends                                                  -
   Sale of assets                                             -
   Miscellaneous                                              -
                                                     ----------
Total other income                                        3,806
                                                     ----------
Net other expense                                        (3,616)
                                                     ----------
Income (loss) before Chapter 11 reorganization
   expenses and income taxes (benefit) and
   extraordinary items                                    4,937

Chapter 11 reorganization expenses                            -  

Income tax expense (benefit)                              1,730

Extraordinary item - net of taxes                             -
                                                     ----------
   Net Income (loss)                                     $3,207
                                                     ==========


                   WESTPOINT STEVENS, INC., I
                     Statement of Cash Flows
                    Month Ended June 30, 2004
                         (in thousands)

Cash flows from operations:
Net income (loss)                                        $3,207
Non-cash items
   Depreciation and amortization                            111
Working Capital Changes
   Decrease/(increase) - a/r (customers)                      -
   Decrease/(increase) - a/r (intercompany)                   -
   Decrease/(increase) - inventories                     (1,517)
   Decrease/(increase) - other current assets                 -
   Decrease/(increase) - other non-current assets             -
   Increase/(decrease) - accounts payable (trade)             6
   Increase/(decrease) - a/p (intercompany)                (476)
   Increase/(decrease) - accrued liabilities             (1,251)
   Increase/(decrease) - accrued interest payable             -
   Increase/(decrease) - pension & other liabilities          -
   Increase/(decrease) - deferred federal income tax          -
                                                     ----------
Total cash flows from operations                             80

Cash flows from investing activities:
   Capital expenditures                                       -
   Transfers                                                  -
   Net proceeds from sale of assets                           -
                                                     ----------
Total cash flows from investing                               -

Cash flows from financing activities:
   Increase/(decrease)- DIP Credit Agreement                  -
                                                     ----------
Total cash flows from financing                               -

Beginning cash balance                                       63
Change in cash                                               80
                                                     ----------
Ending cash balance                                        $143
                                                     ==========

Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed  
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores.  Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens.  The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)  


WESTPOINT STEVENS: WP Stevens Stores' June 2004 Operating Report
----------------------------------------------------------------

                  WESTPOINT STEVENS STORES, INC.
                          Balance Sheet
                         At June 30, 2004
                          (in thousands)

                              Assets

Current Assets  
   Cash and cash equivalents                             $1,788
   Accounts receivable - customers                          164
   Accounts receivable - intercompany                     3,865
   Total Inventories                                     20,970
   Prepaid expenses and other current assets                803
                                                     ----------
Total current assets                                     27,590

Total investments & other assets                              -
Goodwill                                                      -
Property, plant and equipment, net                        2,519
                                                     ----------
TOTAL ASSETS                                            $30,109
                                                     ==========

         Liabilities and Stockholders' Equity (Deficit)

Liabilities Not Subject to Compromise
   Accounts payable - trade                                $606
   Accounts payable -intercompany                             -
   Other accrued liabilities                              3,930
   Deferred income taxes                                      -
   Pension and other liabilities                              -
                                                     ----------
Total Liabilities Not Subject to Compromise               4,536
                                                     ----------

Liabilities Subject to Compromise
   Accounts payable                                       1,673
                                                     ----------
Total liabilities                                         6,209

Shareholders' Equity (Deficit)
   Equity of subsidiaries                                     -
   Common stock                                               1
   Capital surplus/Treasury Stock                        15,955
   Retained earnings (deficit)                            7,944
   Minimum pension liability adjustment                       -
   Other adjustments                                          -
   Unearned compensation                                      -
                                                     ----------
Stockholders' Equity (Deficit)                           23,900
                                                     ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)      $30,109
                                                     ==========

  
                  WESTPOINT STEVENS STORES, INC.
                     Statement of Operations
                    Month Ended June 30, 2004
                          (in thousands)

Net sales                                                $7,172
Cost of goods sold                                        4,392
                                                     ----------
   Gross earnings                                         2,780

Selling and administrative expenses
   Selling expenses                                       2,094
   Warehousing and shipping                                 176
   Advertising                                              199
   Division administrative expense                          274
   MIS expense                                               56
   Corporate administrative expense                          82
                                                     ----------
Total selling and administrative expense                  2,881

Restructuring and impairment charge                           -
Goodwill impairment charge                                    -
                                                     ----------
   Operating earnings (loss)                               (101)

Interest expense
   Interest expense - outside                                 -
   Capitalized interest expense                               -
   Interest expense - intercompany                          154
   Interest income                                            -
   Interest income - intercompany                             -
                                                     ----------
Net interest expense                                        154

Other expense
   Miscellaneous                                              -
   Royalties - intercompany                                   -
   Transaction gain/loss                                      -
                                                     ----------
Total other expense                                           -

Other income
   Royalties Intercompany                                     -
   Dividends                                                  -
   Sale of assets                                             -
   Miscellaneous                                              -
                                                     ----------
Total other income                                            -
                                                     ----------
Net other expense                                             -
                                                     ----------
Income (loss) before Chapter 11 reorganization
   expenses and income taxes (benefit) and  
   extraordinary items                                     (255)

Chapter 11 reorganization expenses                            -
Income tax expense (benefit)                                (89)
Extraordinary item - net of taxes                             -
                                                     ----------
   Net Income (loss)                                      ($166)
                                                     ==========


                  WESTPOINT STEVENS STORES, INC.
                     Statement of Cash Flows
                    Month Ended June 30, 2004
                          (in thousands)

Cash flows from operations:  
Net income (loss)                                         ($166)
Non-cash items  
   Depreciation and amortization                             56
   Gain on sale of assets                                     -
Working Capital Changes
   Decrease/(increase) - a/r (customers)                     16
   Decrease/(increase) - a/r (intercompany)                (996)
   Decrease/(increase) - inventories                        596
   Decrease/(increase) - other current assets                69
   Decrease/(increase) - other non-current assets             -
   Increase/(decrease) - accounts payable (trade)           164
   Increase/(decrease) - a/p (intercompany)                   -
   Increase/(decrease) - accrued liabilities                394
   Increase/(decrease) - accrued interest payable             -
   Increase/(decrease) - pension & other liabilities          -
   Increase/(decrease) - deferred federal income tax          -
                                                     ----------
Total cash flows from operations                            133
Cash flows from investing activities
   Capital expenditures                                     (27)
   Transfers                                                214
   Net proceeds from sale of assets                           -
                                                     ----------
Total cash flows from investing                             187

Cash flows from financing activities
   Increase/(decrease)- DIP Credit Agreement                  -
                                                     ----------
Total cash flows from financing                               -

Beginning cash balance                                    1,468
Change in cash                                              320
                                                     ----------
Ending cash balance                                      $1,788
                                                     ==========

Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed  
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores.  Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens.  The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)  

                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                            *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published by  
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania,  
USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L.  
Metzler, Emi Rose S.R. Parcon, Bernadette C. de Roda, Rizande B.  
Delos Santos, Jazel P. Laureno, Cherry Soriano-Baaclo, Marjorie  
Sabijon and Peter A. Chapman, Editors.

Copyright 2004.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $675 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher
Beard at 240/629-3300.

                    *** End of Transmission ***