/raid1/www/Hosts/bankrupt/TCR_Public/040911.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, September 11, 2004, Vol. 8, No. 195
Headlines
DAN RIVER: Reports $5,065,000 Net Loss in July 2004
DII/KBR: DII's Net Loss Narrows to $97 Million in July 2004
DII/KBR: Mid-Valley's July 2004 Monthly Operating Report
DII/KBR: Kellogg Brown & Root's July 2004 Monthly Operating Report
DII/KBR: KBR Engineering's July 2004 Monthly Operating Report
DII/KBR: KBR Technical's July 2004 Monthly Operating Report
DII/KBR: KBR Int'l. Posts $2.9 Million Net Income for July 2004
DII/KBR: KBR (Panama)'s July 2004 Monthly Operating Report
DII/KBR: BPM Minerals Reports $878,000 Net Income in July 2004
ENRON CORP: Files March 2004 Monthly Operating Report
FEDERAL-MOGUL: Reports $18.6 Million Net Loss in July 2004
FORTUNE NATURAL: Net Loss Widens to $101,453 in July 2004
MED DIVERSIFIED: Reports July 2004 Monthly Operating Results
PARMALAT: Finanziaria Releases July 2004 Financial Results
PILLOWTEX: July 2004 Cash Receipts & Disbursement Report
SPIEGEL: Net Loss Climbs to $12.8MM for Period Ended July 3, 2004
TRENWICK GROUP: Reports $2,012,356 Net Loss in July 2004
*********
DAN RIVER: Reports $5,065,000 Net Loss in July 2004
---------------------------------------------------
On September 7, 2004, Dan River Inc. filed its monthly operating
report for July of fiscal 2004, which includes the period from
July 4, 2004 to August 7, 2004, with the United States Bankruptcy
Court for the Northern District of Georgia. The Company reports
$5,065,000 net loss in $40,993,000 of net sales.
A full-text copy of Dan River Inc.'s Monthly Financial Report for
the period from July 4, 2004 to August 7, 2004, is available at no
charge at:
http://www.sec.gov/Archives/edgar/data/914384/000091438404000025/e9919704.txt
Headquartered in Danville, Virginia, Dan River Inc.
-- http://www.danriver.com/-- is a designer, manufacturer and
marketer of textile products for the home fashions, apparel
fabrics and industrial markets. The Company filed for chapter 11
protection on March 31, 2004 (Bankr. N.D. Ga. Case No. 04-10990).
James A. Pardo, Jr., Esq., at King & Spalding represents the
Debtors in their restructuring efforts. When the Debtors filed
for protection from their creditors, they listed $441,800,000 in
total assets and $371,800,000 in total debts.
DII/KBR: DII's Net Loss Narrows to $97 Million in July 2004
-----------------------------------------------------------
DII Industries, LLC
Unaudited Balance Sheet
As of July 31, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $104,720
Escrow - prepetition payments 142,849
Investment account with Parent 408,000
Trade receivables -
Unbilled work on incomplete contracts -
Other receivables 11
Inventories -
Right to Halliburton Shares 1,849,617
Insurance for asbestos & silica-related PI claims 889,072
Other current assets 310,033
----------
Total current assets 3,704,302
Net property, plant and equipment -
Investments in consolidated subsidiaries 1,983,324
Equity in related companies -
Intercompany with related companies (1,128,654)
Goodwill, net -
Non-current deferred income taxes 349,000
Insurance for asbestos & silica-related PI claims 468,449
Other assets 11
----------
Total assets $5,376,432
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
DIP Financing -
Current maturities of long-term debt -
Accounts payable $431
Accrued employee compensation and benefits 171
Accrued interest payable 7,768
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims 2,402,028
Other current liabilities 11,000
----------
Total current liabilities 2,421,398
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims 1,856,267
Minority interest in consolidated subsidiaries -
Other liabilities 5,224
----------
Total liabilities 4,282,889
Total shareholder's equity 1,093,543
----------
Total liabilities and shareholder's equity $5,376,432
==========
DII Industries, LLC
Unaudited Income Statement
Month ended July 31, 2004
(in thousands)
Revenues -
Operating costs and expenses $273
----------
Operating income/(loss) (273)
Interest expense -
Interest income 4,921
Foreign currency gains (losses) 10
Other non-operating income - net -
Equity in earnings/(loss) of subsidiaries (63,600)
----------
Income/(loss) before taxes & minority interest (58,942)
Income tax benefit/(provision) (1,651)
----------
Income/(loss) from continuing operations (60,593)
----------
Income/(loss) from discontinued operations (36,395)
----------
Net Income/(loss) ($96,988)
==========
DII/KBR: Mid-Valley's July 2004 Monthly Operating Report
--------------------------------------------------------
Mid-Valley, Inc.
Unaudited Balance Sheet
As of July 31, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents -
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables -
Inventories -
Other current assets -
----------
Total current assets -
Net property, plant and equipment -
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies -
Intercompany with Parent $40,378
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets 558
----------
Total assets $40,936
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable ($4)
Accrued employee compensation and benefits 23
Accrued interest payable -
Advanced billings on uncompleted contracts 532
Asbestos and silica-related PI claims -
Other current liabilities 2,056
----------
Total current liabilities 2,608
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 2,608
Total shareholder's equity 38,328
----------
Total liabilities and shareholder's equity $40,936
==========
Mid-Valley, Inc., reports no income for July 2004.
DII/KBR: Kellogg Brown & Root's July 2004 Monthly Operating Report
------------------------------------------------------------------
Kellogg Brown & Root, Inc.
Unaudited Balance Sheet
As of July 31, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents ($23,584)
Escrow - prepetition payments 117,076
Trade receivables 111,531
Unbilled work on uncompleted contracts 68,712
Other receivables 16,699
Inventories -
Other current assets 22,248
----------
Total current assets 312,682
Net property, plant and equipment 60,579
Investments in consolidated subsidiaries 248,679
Equity in related companies 14,915
Intercompany with related companies (55,741)
Intercompany with Parent 590,335
Goodwill, net 171,213
Non-current deferred income taxes 209,000
Insurance for asbestos & silica-related PI claims -
Right to Halliburton shares -
Other assets 86,311
----------
Total assets $1,637,973
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $88,333
Accrued employee compensation and benefits 53,441
Accrued interest payable -
Advanced billings on uncompleted contracts 232,321
Asbestos and silica-related PI claims 74,337
Other current liabilities 372,710
----------
Total current liabilities 821,142
Long-term debt -
Employee compensation and benefits 52,882
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities 84,345
----------
Total liabilities 958,369
Total shareholder's equity 679,604
----------
Total liabilities and shareholder's equity $1,637,973
==========
Kellogg Brown & Root, Inc.
Unaudited Income Statement
Month ended July 31, 2004
(in thousands)
Revenues $93,715
Operating costs and expenses 74,633
----------
Operating income 19,082
Interest expense (2,571)
Interest income 64
Foreign currency gains (losses) 919
Other non-operating income - net -
----------
Income before taxes and minority interest 17,494
Income tax benefit/(provision) (2,243)
----------
Income from continuing operations 15,251
----------
Net Income $15,251
==========
DII/KBR: KBR Engineering's July 2004 Monthly Operating Report
-------------------------------------------------------------
KBR Engineering Corp.
Unaudited Balance Sheet
As of July 31, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents -
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables -
Inventories -
Other current assets -
----------
Total current assets -
Net property, plant and equipment -
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies $77
Intercompany with Parent -
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $77
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable -
Accrued employee compensation and benefits -
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities -
----------
Total current liabilities -
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities -
Total shareholder's equity $77
----------
Total liabilities and shareholder's equity $77
==========
KBR Engineering Corp. reports no income for July 2004.
DII/KBR: KBR Technical's July 2004 Monthly Operating Report
-----------------------------------------------------------
KBR Technical Services, Inc.
Unaudited Balance Sheet
As of July 31, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $301
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables 467
Inventories -
Other current assets 886
----------
Total current assets 1,654
Net property, plant and equipment 26,188
Investments in consolidated subsidiaries 1,555
Equity in related companies -
Intercompany with related companies 11,581
Intercompany with Parent -
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $40,978
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $5,237
Accrued employee compensation and benefits 19,049
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities 584
----------
Total current liabilities 24,870
Long-term debt -
Employee compensation and benefits 2,637
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 27,507
Total shareholder's equity 13,471
----------
Total liabilities and shareholder's equity $40,978
==========
KBR Technical Services, Inc.
Unaudited Income Statement
Month ended July 31, 2004
(in thousands)
Revenues -
Operating costs and expenses $644
----------
Operating income/(loss) (644)
Interest expense (140)
Interest income -
Foreign currency gains (losses) 1
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest (783)
Income tax benefit -
----------
Net Income/(loss) ($783)
==========
DII/KBR: KBR Int'l. Posts $2.9 Million Net Income for July 2004
---------------------------------------------------------------
KBR International, Inc.
Unaudited Balance Sheet
As of July 31, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $39,943
Escrow - prepetition payments -
Trade receivables 18,668
Unbilled work on uncompleted contracts 19,824
Other receivables 19,570
Inventories -
Other current assets 1,941
----------
Total current assets 99,946
Net property, plant and equipment 354
Investments in consolidated subsidiaries 28,150
Equity in related companies 2,588
Intercompany with related companies -
Intercompany with Parent (42,316)
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets 488
----------
Total assets $89,210
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $14,927
Accrued employee compensation and benefits 335
Accrued interest payable -
Advanced billings on uncompleted contracts 14,289
Asbestos and silica-related PI claims -
Other current liabilities 10,499
----------
Total current liabilities 40,050
Long-term debt -
Employee compensation and benefits 697
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities 212
----------
Total liabilities 40,959
Total shareholder's equity 48,251
----------
Total liabilities and shareholder's equity $89,210
==========
KBR International, Inc.
Unaudited Income Statement
Month ended July 31, 2004
(in thousands)
Revenues $14,678
Operating costs and expenses 12,380
----------
Operating income/(loss) 2,298
Interest expense -
Interest income 1,134
Foreign currency gains (losses) 27
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest 3,459
Income tax benefit/(provision) (491)
----------
Net Income/(loss) $2,968
==========
DII/KBR: KBR (Panama)'s July 2004 Monthly Operating Report
----------------------------------------------------------
KBR International, Inc. (Panama)
Unaudited Balance Sheet
As of July 31, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $33,360
Escrow - prepetition payments -
Trade receivables 2,525
Unbilled work on uncompleted contracts 5,718
Other receivables 277
Inventories -
Other current assets 5,776
----------
Total current assets 47,656
Net property, plant and equipment 1,033
Investments in consolidated subsidiaries 23,865
Equity in related companies -
Intercompany with related companies -
Intercompany with Parent (37,025)
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets 16
----------
Total assets $35,545
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable $462
Current maturities of long-term debt -
Accounts payable 2,511
Accrued employee compensation and benefits 3,011
Accrued interest payable -
Advanced billings on uncompleted contracts 370
Asbestos and silica-related PI claims -
Other current liabilities 1,103
----------
Total current liabilities 7,457
Long-term debt -
Employee compensation and benefits 599
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 8,056
Total shareholder's equity 27,489
----------
Total liabilities and shareholder's equity $35,545
==========
KBR International, Inc. (Panama)
Unaudited Income Statement
Month ended July 31, 2004
(in thousands)
Revenues $4,347
Operating costs and expenses 2,893
----------
Operating income/(loss) 1,454
Interest expense (23)
Interest income 25
Foreign currency gains (losses) 26
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest 1,482
Provision for income tax -
----------
Net Income/(loss) $1,482
==========
DII/KBR: BPM Minerals Reports $878,000 Net Income in July 2004
--------------------------------------------------------------
BPM Minerals, LLC
Unaudited Balance Sheet
As of July 31, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents ($288)
Escrow - prepetition payments -
Trade receivables 6,947
Unbilled work on uncompleted contracts -
Other receivables 447
Inventories 6,724
Other current assets -
----------
Total current assets 13,830
Net property, plant and equipment 8,849
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies 45,302
Intercompany with Parent -
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $67,980
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $666
Accrued employee compensation and benefits -
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities 87
----------
Total current liabilities 753
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims 42,000
Minority interest in consolidated subsidiaries -
Other liabilities 460
----------
Total liabilities 43,213
Total shareholder's equity 24,767
----------
Total liabilities and shareholder's equity $67,980
==========
BPM Minerals, LLC
Unaudited Income Statement
Month ended July 31, 2004
(in thousands)
Revenues $5,429
Operating costs and expenses 4,551
----------
Operating income 878
Interest expense -
Interest income -
Foreign currency gains (losses) -
Other non-operating income - net -
----------
Income before taxes and minority interest 878
Provision for income tax -
----------
Net Income $878
==========
ENRON CORP: Files March 2004 Monthly Operating Report
-----------------------------------------------------
On September 1, 2004, Enron Corp. and certain other
debtors-in-possession subsidiaries of the Company filed their
monthly operating report for March 2004 with the United States
Bankruptcy Court for the Southern District of New York.
A full-text copy of Enron Corp.'s March 2004 Monthly Operating
Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1024401/000095012904006818/h18231exv99w1.txt
Enron Corp. et al.
Cash Activity Rollforward
For the Month Ended March 31, 2004
Beginning cash $1,499,000,000
Third party receipts 265,000,000
Third party disbursements (95,000,000)
Net Intercompany 41,000,000
Transfer from or to Restricted Cash 0
---------------
Ending balance $1,710,000,000
Enron Corp. et al.
Tax Rollforward (Non-Payroll)
For the Month Ended March 31, 2004
Beginning Balance $19,000,000
Accruals (32,000,000)
Intercompany 37,000,000
Payments 0
---------------
Ending Balance $24,000,000
Enron Corp. et al.
Receivables Rollforward - Non-Commodity
For the Month Ended March 31, 2004
Beginning Balance $292,000,000
Billings 6,000,000
Payments Received (5,000,000)
Other Adjustments 3,000,000
---------------
Ending Balance $296,000,000
Enron Corp. et al.
Commodity Receivables and Payables
For the Month Ended March 31, 2004
Receivables $411,000,000
Payables 655,000,000
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). Judge Gonzalez confirmed the Company's Modified Fifth
Amended Plan on July 15, 2004, and numerous appeals followed.
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. 124;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
FEDERAL-MOGUL: Reports $18.6 Million Net Loss in July 2004
----------------------------------------------------------
Federal-Mogul Global, Inc., et al.
Unaudited Balance Sheet
As of July 31, 2004
(In millions)
Assets
Cash and equivalents $311.1
Accounts receivable 578.7
Inventories 484.4
Deferred taxes 199.7
Prepaid expenses and other current assets 115.0
----------
Total current assets 1,688.9
Summary of Unpaid Postpetition Debits (77.6)
Intercompany Loans Receivable (Payable) 2,462.1
----------
Intercompany Balances 2,384.6
Property, plant and equipment 1,083.6
Goodwill 1,177.6
Other intangible assets 452.9
Insurance recoverable 817.0
Other non-current assets 1,099.1
----------
Total Assets $8,703.6
==========
Liabilities and Shareholders' Equity
Short-term debt $278.7
Accounts Payable 195.0
Accrued Compensation 69.2
Restructuring and rationalization reserves 16.3
Current portion of asbestos liability -
Interest Payable 1.6
Other accrued liabilities 313.1
----------
Total current liabilities 873.9
Long-term debt 25.0
Post-employment benefits 1,475.1
Other accrued liabilities 970.2
Liabilities subject to compromise 6,081.3
Shareholders' equity:
Preferred stock 1,054.7
Common stock 555.4
Additional paid-in capital 7,937.3
Accumulated deficit (9,629.8)
Accumulated other comprehensive income (639.3)
----------
Total Shareholders' Equity (721.8)
----------
Total Liabilities and Shareholders' Equity $8,703.7
==========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Operations
For the month ended July 31, 2004
(In millions)
Net sales $252.1
Cost of products sold 217.5
----------
Gross margin 34.6
Selling, general & administrative expenses (52.8)
Amortization (1.2)
Reorganization items (8.6)
Interest income (expense), net (7.3)
Other income (expense), net 16.9
----------
Earnings before Income Taxes (18.4)
Income Tax (Expense) Benefit (0.2)
----------
Earnings before effect of change in acctg principle (18.6)
Cumulative effect of change in acctg principle -
----------
Net Earnings (loss) ($18.6)
==========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Cash Flows
For the month ended July 31, 2004
(In millions)
Cash Provided From (Used By) Operating Activities:
Net earnings (loss) ($18.6)
Adjustments to reconcile net earnings (loss):
Depreciation and amortization 13.6
Adjustments of assets held for sale to fair value -
Asbestos Charge -
Summary of unpaid postpetition debits -
Cumulative effect of change in acctg principle -
Change in post-employment benefits (0.0)
Decrease/(increase) in accounts receivable 23.6
Decrease/(increase) in inventories (18.4)
Increase/(decrease) in accounts payable (3.2)
Change in other assets and other liabilities (14.1)
Change in restructuring charge (0.8)
Refunds (payments) against asbestos liability -
----------
Net Cash Provided From Operating Activities (17.9)
Cash Provided From (Used By) Investing Activities:
Expenditures for property, plant & equipment (6.4)
Proceeds from sale of property, plant & equipment -
Proceeds from sale of businesses -
Business acquisitions, net of cash acquired -
Other -
----------
Net Cash Provided From (Used By) Investing Activities (6.4)
Cash Provided From (Used By) Financing Activities:
Increase (decrease) in debt 25.0
Sale of accounts receivable under securitization -
Dividends -
Other (2.0)
----------
Net Cash Provided From Financing Activities 23.0
Increase (Decrease) in Cash and Equivalents (1.3)
Cash and equivalents at beginning of period 312.5
----------
Cash and equivalents at end of period $311.1
==========
Headquartered in Southfield, Michigan, Federal-Mogul Corporation -
- http://www.federal-mogul.com/-- is one of the world's largest
automotive parts companies with worldwide revenue of some $6
billion. The Company filed for chapter 11 protection on Oct. 1,
2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan, Esq.,
James F. Conlan, Esq., and Kevin T. Lantry, Esq., at Sidley Austin
Brown & Wood and Laura Davis Jones, Esq., at Pachulski, Stang,
Ziehl, Young, Jones & Weintraub, represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
its creditors, they listed $10.15 billion in assets and $8.86
billion in liabilities. (Federal-Mogul Bankruptcy News, Issue No.
63; Bankruptcy Creditors' Service, Inc., 215/945-7000)
FORTUNE NATURAL: Net Loss Widens to $101,453 in July 2004
---------------------------------------------------------
Fortune Natural Resources Corporation filed its monthly operating
report for July 2004 with the United States Bankruptcy Court for
the Eastern District of Louisiana (Bankr. Case No. 04-14112) this
week. Fortune's net loss widens to $101,453 in July 2004,
compared to a $71,452 net loss in June 2004.
The Debtor's July 31 balance sheet shows:
Fortune Natural Resources Corporation
Balance Sheet
At July 31, 2004
Current Assets $133,043
Total Assets 5,958,924
Post-petition Liabilities 95,177
Total Liabilities 6,304,871
Total Equity (Net Worth) ($345,948)
On June 1, 2004, Fortune Natural Resources Corporation filed a
voluntary petition in the United Stated Bankruptcy Court, Eastern
District of Louisiana, for relief under Chapter 11 of Title 11,
U.S.C. Section 101- 1330. The Debtor continues to own its property
and operate its business as a Debtor-in-Possession pursuant to
Sections 1107 and 1108 of the Bankruptcy Code. No trustee or
examiner has been appointed in this case.
A full-text copy of Fortune Natural Resources Corporation's July
2004 Monthly Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/38242/000003824204000014/exh99_1.txt
MED DIVERSIFIED: Reports July 2004 Monthly Operating Results
------------------------------------------------------------
Med Diversified, Inc., and its subsidiaries, Chartwell Diversified
Services, Inc., Chartwell Community Services, Inc., Chartwell Care
Givers, Inc., Resource Pharmacy, Inc., Trestle Corporation, Tender
Loving Care Health Care Services, Inc. recently filed with the
United States Bankruptcy Court for the Eastern District of New
York its July 2004 Monthly Operating Reports. Med Diversified
Inc.'s balance sheet shows:
July 31, 2004
-------------
Total Assets $90,705,005
Post-petition
Liabilities 4,632,336
Pre-petition
Liabilities 128,743,509
Total Liabilities 133,375,845
Stockholders' Deficit 42,670,840
Full-text copies of Med Diversified, et al.'s July 2004 Monthly
Operating Reports are available at no charge at:
http://www.sec.gov/Archives/edgar/data/800181/000110465904026839/0001104659-04-026839-index.htm
PARMALAT: Finanziaria Releases July 2004 Financial Results
-----------------------------------------------------------
Parmalat Finanziaria SpA in Extraordinary Administration
communicates the financial and economic results for the Parmalat
Group as at July 31, 2004.
A number of the non-Italian operations of the Group identified in
previous months as being subject to "Special Proceedings" (for
example USA Dairy, Brazil, Chile, EVH) and some financial
companies (for example Parmalat Capital Finance) are currently
subject to certain restrictions on their management as a result of
the same local proceedings with the result that these operations
are effectively outside of the control of Parmalat Finanziaria SpA
in Extraordinary Administration. It has for this reason been
decided to remove these businesses from the total consolidation
area of the Group and to record them according to a net equity
methodology. This will be the case while any eventual obligations
Parmalat Finanziaria SpA in Extraordinary Administration may be
found to have on the basis of legislation in force in the
countries in which these businesses are headquartered, together
with any guarantees to those that financed these companies, have
been examined in greater detail and checked.
More specifically: USA Dairy (Parmalat USA Corp., Farmland
Dairies, Milk Products of Alabama) is the American business
operating in the milk and milk related products sector and which
is subject to Chapter 11 protection; for two Brazilian companies
(Parmalat Brasil and Parmalat Partecipacoes) a local Concordata
procedure has been agreed that also covers their subsidiary
companies; the Chilean business is also subject to a local
concordat procedure; EVH, a company incorporated in Canada, has
been laced into liquidation; Parmalat Capital Finance has been
placed into a procedure granting protection by the local court.
This group of companies includes Eurofood IFSC, which is
currently subject to a dispute with the Irish judicial
authorities who contend that the Italian Extraordinary
Administration proceedings do not apply to this company.
As a consequence of taking account of the above, pro forma results
for the revised consolidation relating to the previous financial
year have been drawn up. It is these figures, set out in the
following tables, that are comparable with the relevant results
for the current year.
FINANCIAL RESULTS
Highlights
(in EUR millions)
Revenues
--------------------------------
Previous Previous year Current
year Pro-Forma year
-------- ------------- -------
Core Activities 2,168.9 2,168.9 2,110.6
Non Core Activities 1,074.9 502.5 357.8
-------- ------------- -------
Total 3,243.7 2,671.3 2,468.4
======== ============= =======
EBITDA
--------------------------------
Previous Previous year Current
year Pro-Forma year
-------- ------------- -------
Core Activities 135.4 135.4 146.8
Non Core Activities (51.5) (29.7) (15.2)
-------- ------------- -------
Total 83.9 105.7 131.5
======== ============= =======
% of Revenues
--------------------------------
Previous Previous year Current
year Pro-Forma year
-------- ------------- -------
Core Activities 6.2 6.2 7.0
Non Core Activities (4.8) (5.9) (4.3)
-------- ------------- -------
Total 2.6 4.0 5.3
======== ============= =======
* Core Activities: consist of drinks products (milk and
fruit juice) and milk-based products, focused on
approximately 30 brands ("global" brands or strong local
brands), centered on high potential countries where there
is strong demand for healthy lifestyle products, the
willingness to recognize premium prices for the Parmalat
brand and the availability of leading edge technology.
* Non-core activities: these are countries and activities
considered to be non-strategic that will be subject to
divestment.
Core Activities
Parmalat's Core Activity revenues have generally held up well when
compared to the same period in the previous year (EUR2,110.6
million compared to EUR2,168.9 million), while EBITDA improved by
8.4% to EUR146.8 million compared to EUR135.4 million for the same
period in 2003.
This improvement in operating results is largely due to
initiatives of a commercial nature and thanks to operating and
structural cost reduction measures.
These results do not take account of the extraordinary costs
relating to the Administration procedure of some EUR34 million
for the period to date, since these relate only to the 2004
financial year.
Revenues for the last month (the difference between the revenue
figure reported for the end of July 2004 and that to the end of
June 2004) were EUR325.8 million, while EBITDA was EUR22.2 million
(6.8% of revenues), substantially maintained the improving trend
of previous months.
Specifically, looking at the Group's main geographical areas of
operation, the following is evident:
-- Italy
Revenues for the period to the end of July reached
EUR806.3 million, down 7.8% compared to the
EUR874.1 million recorded in the same period in 2003.
However, EBITDA improved by 11.5% moving from
EUR50.4 million at 31 July 2003 to EUR56.2 million as at
31 July 2004.
Revenues for the month of July were EUR114.3 million
while EBITDA was EUR6.7 million (5.9% of revenues).
The trend remains a positive one even if reduced in
magnitude compared to the previous months as a result
of a lower contribution from fruit juices compared to the
same period of last year. This is as a result of the
different weather conditions and to the seasonality of
pasteurized milk, the level of whose sales falls in the
summer months, all of which has translated into a lower
contribution to results.
It should also be noted that there has been an increase
in the cost of some raw materials and a increased impact
in percentage terms of fixed business costs (which remain
unchanged in absolute terms compared to the previous
year). Steps are under way in the second half of the
year in order to reduce the level of these costs.
-- Spain
Revenues for the period were EUR136.7 million compared to
the EUR139.5 million achieved as at 31 July 2003. EBITDA
for the same period was down from EUR14.3 million to
EUR10.3 million.
Revenues for the month of July 2004 were EUR22.4 million
while EBITDA reached EUR2.4 million (10.7% of revenues),
an improvement on the trend of recent months.
The factors underlying the decrease in EBITDA were an
increase in the cost of milk, a lower contribution from
the seasonally influenced Royne branded ice creams given
the less clement weather conditions than were seen in the
same period last year, as well as increased price
competition and the launch of new products by
competitors.
-- South Africa
Revenues as at 31 July 2004 of EUR135.2 million grew of
31.1% compared to the EUR103.2 million of the same period
in 2003. EBITDA also grew significantly from EUR8.1
million to EUR10.6 million (+30.7%). This increase in
profitability was principally due to the acquisition of
new brands (Simonsberg) as well as to the appreciation of
the South African Rand against the Euro (+8.2% compared
to the same period of last year).
Revenues for the month of July 2004 were EUR22.1 million
and EBITDA for the month was EUR1.6 million (7.2% of
revenues). The month was characterized particularly by a
marked increase in sales volumes of low margin products.
-- Venezuela
Relative to the same period in 2003, the Venezuelan
Bolivar has undergone a significant depreciation against
the Euro (-25.2%), in part following to domestic
political uncertainty.
This, along with the absence of sufficient credit lines
for the import of raw materials (powdered milk) and
reduced sales volumes in fruit juices, led to a reduction
in revenues which fell from EUR116 million as at 31 July
2003 to EUR87.2 million as the end of July 2004 (-24.8%)
and, above all, the strong decrease in operating
profitability which fell from EUR15.5 million to EUR2.4
million as a result of increased local raw material costs
that were not balanced by a rise in retail pricing, and
higher relative structural costs.
Revenues for the month of July 2004 were EUR12.4 million
and EBITDA was EUR300,000, without any issues of specific
note for the period.
-- Canada
As seen in previous months the Canadian market maintained
the slight growth trend of the previous months at the
revenue level moving from EUR659.6 million to EUR668.4
million offsetting the slight depreciation of the
Canadian dollar relative to the Euro (-2.5%). EBITDA of
EUR42.9 million at the end of July 2004 improved of 4.2%
compared to the same period in 2003 (EUR41.1 million).
July 2004 volumes increased compared to the average
volumes seen in the first half of 2004, with
profitability remaining stable. Revenues for the month
were EUR110.8 million while EBITDA was EUR7.3 million
(6.6% of revenues).
-- Australia
In a context of a reduced average unit selling price, a
favorable trend in the Australian dollar exchange rate
(+6.3%) and an increase in volumes, revenues reached
EUR220 million, up 4.4% compared to the EUR210.7 million
of the same period in 2003. These same factors, together
with a reduction in general and promotional expenses and
improved raw materials purchasing, contributed to an
improvement in EBITDA (EUR17.3 million for the period)
compared to the EUR16.2 million in the same period in the
previous year (+6.5%).
Revenues for the month of July were EUR37.4 million, a
strong increase on the average revenues of the first six
months, while EBITDA of EUR3.5 million (9.4% of
revenues), was also up on the previous month.
Non-Core Activities
Non-Core Activities registered a significant fall in revenues as
at 31 July 2004 compared to the same period last year (EUR357.8
million compared to EUR502.5 million, down 28.8%) although EBITDA
for the same businesses, while still heavily negative, showed an
improvement at a negative EUR15.2 million compared to a negative
EUR29.7 million for the same period in 2003.
In July 2004 total sales were EUR49.5 million and EBITDA was a
negative EUR2.7 million (a negative 5.5% of revenues).
The strong reduction in losses compared to 2003 is principally
linked to actions undertaken in Italy and at the US bakery
operations.
Italy
The Non-Core activities of Parmalat SpA (consisting principally of
businesses in the bakery, juice and tomato sectors) more than
halved their losses for the period (from a negative EUR9.5 million
to a negative EUR4.1 million) thanks principally to the suspension
of the activities in the mineral water sector and a drastic
reduction in promotional and advertising activities related to
bakery and juices.
In the same way greater attention to commercial expenses and
reduced structural costs led to a reduction in losses at other
Non-Core Italian businesses, falling from a negative EUR7 million
in 2003 to a negative EUR2.7 million as at the end of July 2004.
USA Bakery
The US bakery activities, whilst experiencing a fall in revenues
have seen a marked improvement in operating profitability (even if
this still remains in negative territory, moving as it has from a
negative EUR13 million in 2003 to a negative EUR5.4 million at the
end of July 2004), this thanks to the reorganization and
repositioning under way in the business.
Heavily negative results have been recorded in Mexico where
operations have been badly hit by the Group's financial crisis
and the resulting impact on their operating performance. EBITDA
has worsened from EUR500,000 at 31 July 2003 to a negative EUR2.4
million as at 31 July 2004. The assets of the Mexican business
have, moreover, been divested during the month of July.
NET FINANCIAL POSITION
Highlights (in EUR millions)
Situation Situation Situation Situation
as at Pro-Forma as at as at as at
12/31/2003 12/31/2003 06/30/2004 07/31/2004
---------- --------------- ---------- ----------
Short term
financial assets (121.4) (104.7) (124.7) (125.2)
of which:
Liquidity
financial
assets (20.9) (20.9) (10.5) (10.4)
Available
liquidity (100.5) (83.8) (114.2) (114.8)
Accruals on
financial assets
(incl. Interco.) (61.9) (57.2) (78.2) (76.6)
---------- --------------- ---------- ----------
Total short term
financial
assets (183.3) (161.9) (202.9) (201.8)
---------- --------------- ---------- ----------
Financial debts 13,457.5 11,402.6 11,409.6 11,447.7
Accruals on
financial liabilities
(incl. Interco.) 256.2 200.8 246.6 231.0
---------- --------------- ---------- ----------
Total financial
liabilities 13,713.7 11,603.4 11,656.2 11,678.7
Financial
indebtedness/(Fully
consolidated
companies) 13,530.4 11,441.5 11,453.3 11,476.9
---------- --------------- ---------- ----------
Financial
indebtedness/net
equity methodology
evalued companies 132.0 2,220.9 2,523.7 2,523.7
---------- --------------- ---------- ----------
Total financial
indebtedness 13,662.4 13,662.4 13,977.0 14,000.6
========== =============== ========== ==========
Compared to the situation at 31 December 2003, the Group's net
financial position as at 31 July 2004 shows the following
characteristics: increased levels of liquidity, thanks largely to
the attention paid to the management of available resources and
to the disposal of Parmalat SpA's holdings in MCC SpA and Banca
di Roma SpA and of Parmalat Finanziaria SpA's disposal of its
holding in Fondo Alfieri. On the liability side there has been a
small increase almost entirely resulting from a change in the
rates of exchange between the Euro and currencies in countries
outside Europe where the Group operates, from an increase in
accruals for liabilities for interest and from an increase in the
indebtedness of the Group's Canadian businesses.
No use has been made until now of the line of credit of EUR105.8
million provided by a pool of banks on 4 March 2004.
With reference to those companies that have been consolidated in
their entirety, the net financial debt with third parties is
divided as follows:
(in EUR millions)
Situation Situation Situation
Pro-Forma as at as at as at
12/31/2003 06/30/2004 07/31/2004
--------------- ---------- ----------
Companies in EA
subject to proposed
composition with
creditors 10,055.3 10,058.2 10,048.6
Other companies in EA 56.9 40.6 41.4
Other companies 1,329.3 1,354.5 1,386.9
Financial
indebtedness/Total 11,441.5 11,453.3 11,476.9
=============== ========== ==========
Companies in Extraordinary Administration
The net indebtedness of these companies towards third parties,
incurred prior to their entry into Extraordinary Administration,
should be considered as being largely short-term in nature, given
the current situation of default on the covenants underlying the
financial contracts. Of particular note is the increased levels
of liquidity at the companies subject to proposed Composition with
Creditors, this having increased from EUR24 million as at 31
December 2003 to EUR68.5 million as at 31 July 2004; EUR19.4
million of this amount is subject to a restriction by a credit
institution with regard to its use.
Other Companies
The remaining operating and financial companies not subject to the
Procedure and totally consolidated, have net financial
indebtedness towards third parties as at 31 December 2003 of
EUR1,329.3 million, at 30 June 2004 of EUR1,354.5 million and at
31 July 2004 of EUR1,386.9 million. Of this amount EUR710.3
million is represented by debt of a medium or long term nature.
A number of companies are currently in talks to renegotiate their
debt in order to consolidate it. Among the companies which have
already closed such agreements it should be noted that the
Group's Canadian operating companies have finalized during the
course of July the refinancing of their debt. This entailed a
EUR43.7 million penalty for the early redemption of the previous
debt as a result of the default situation. Following payment of
this penalty new financing was put in place that will be repaid
by 2012 and that has been included in the calculation of the
Group's financial position as at 30 June of this year. The
further increase in debt during the month of July also relates to
the Canadian operations and derives from the repayment of a
securitization of commercial credits and to the financing costs
linked to the transaction, for a total amount of EUR32 million.
Principal Companies in Extraordinary Administration
The following tables summarize the situations of the principal
Italian companies in Extraordinary Administration.
Parmalat Finanziaria SpA
(Values in millions of Euros)
Situation Situation Situation
Pro-Forma as at as at as at
12/31/2003 06/30/2004 07/31/2004
--------------- ---------- ----------
Short term financial
assets (140.8) (139.9) (141.3)
of which:
Intercompany
financial credits (138.8) (138.8) (138.8)
Liquid financial
assets (2.0) - -
Available liquidity (0.0) (1.1) (2.5)
Accruals on financial
assets (incl. Interco.) (0.6) - -
--------------- ---------- ----------
Total short term
financial assets (141.4) (139.9) (141.3)
--------------- ---------- ----------
Financial debt (incl.
Intercompany debt) 1,269.9 1,272.9 1,274.4
of which:
Intercompany
financial debt 1,007.8 1,010.9 1,012.4
Other financial debt 262.1 262.0 262.0
Accruals on financial
liabilities
(incl. Interco.) 4.8 4.7 4.7
--------------- ---------- ----------
Total financial
liabilities 1,274.7 1,277.6 1,279.1
--------------- ---------- ----------
Financial indebtedness/
(positive fin. Position) 1,133.3 1,137.7 1,137.8
=============== ========== ==========
The net financial position of the company is substantially
unchanged. The increase of EUR1.5 million in intercompany
financial debt in the month of July 2004 compared to the month of
June 2004 (which under financial assets can be seen in an
increase in liquidity) relates to the granting of a loan by
Parmalat SpA.
Parmalat SpA
(Values in millions of Euros)
Situation Situation Situation
Pro-Forma as at as at as at
12/31/2003 06/30/2004 07/31/2004
--------------- ---------- ----------
Short term financial
assets (54.3) (61.3) (58.0)
of which:
Intercompany
financial credits (28.0) (38.6) (38.3)
Liquid financial
assets (19.7) 0.0 0.0
Available liquidity (6.6) (22.7) (19.7)
Accruals on financial
assets (incl. Interco.) 0.0 0.0 0.0
--------------- ---------- ----------
Total short term
financial assets (54.3) (61.3) (58.0)
--------------- ---------- ----------
Financial debt (incl.
Intercompany debt) 4,149.0 4,149.0 4,149.0
of which:
Intercompany
financial debt 1,266.2 1,266.2 1,266.2
Other financial debt 2,882.8 2,882.8 2,882.8
Accruals on financial
liabilities
(incl. Interco.) 0.0 0.0 0.0
--------------- ---------- ----------
Total financial
liabilities 4,149.0 4,149.0 4,149.0
--------------- ---------- ----------
Financial indebtedness/
(positive fin. Position) 4,094.7 4,087.8 4,091.0
=============== ========== ==========
The net financial position of Parmalat SpA is substantially
unchanged. More specifically, compared to 31 December 2003, the
financial resources of the company were positively effected by
the divestment of the holdings in MCC SpA and Banca di Roma SpA.
These divestments along with the performance of the operating
business, generated new cash that permitted, above and beyond
covering the ongoing requirements of the business, an increase in
the total available liquidity (up from EUR6.6 million to EUR19.7
million) and the granting of inter-company credits of EUR22.4
million, principally in favor of units in North America (EUR10.7
million), Parmalat Finanziaria (EUR4.6 million), Parmalat Uruguay
(EUR1.7 million) and units in Germany (EUR1.6 million)
Finally it should be noted that during the course of July 2004
liquid resources decreased (from EUR22.7 million to EUR19.7
million) principally as a result of financing granted to other
Group companies (EUR2.3 million).
Eurolat SpA
(Values in millions of Euros)
Situation Situation Situation
Pro-Forma as at as at as at
12/31/2003 06/30/2004 07/31/2004
--------------- ---------- ----------
Short term financial
assets (13.6) (19.8) (17.8)
of which:
Intercompany
financial credits 0.0 0.0 0.0
Liquid financial
assets 0.0 0.0 0.0
Available liquidity (13.6) (19.8) (17.8)
Accruals on financial
assets (incl. Interco.) - (0.1) (0.1)
--------------- ---------- ----------
Total short term
financial assets (13.6) (19.9) (17.9)
--------------- ---------- ----------
Financial debt (incl.
Intercompany debt) 191.9 190.6 190.1
of which:
Intercompany
financial debt 45.8 45.8 45.8
Other financial debt 146.1 144.9 144.4
Accruals on financial
liabilities
(incl. Interco.) 1.5 - -
--------------- ---------- ----------
Total financial
liabilities 193.4 190.6 190.1
--------------- ---------- ----------
Financial indebtedness/
(positive fin. Position) 179.7 170.7 172.3
=============== ========== ==========
This company also saw its debt position consolidated compared to
the month of December 2003 having not had to seek new financing.
The cash position at the end of the month of July produced a level
of liquidity that was lower compared to the previous month as a
result of having had to make supplier payments that were higher
than the running average of previous months.
Lactis SpA
(Values in millions of Euros)
Situation Situation Situation
Pro-Forma as at as at as at
12/31/2003 06/30/2004 07/31/2004
--------------- ---------- ----------
Short term financial
assets (0.4) (3.7) (3.7)
of which:
Intercompany
financial credits - - -
Liquid financial
assets - - -
Available liquidity (0.4) (3.7) (3.7)
Accruals on financial
assets (incl. Interco.) (0.0) (0.0) (0.0)
--------------- ---------- ----------
Total short term
financial assets (0.4) (3.8) (3.7)
--------------- ---------- ----------
Financial debt (incl.
Intercompany debt) 20.5 20.5 20.5
of which:
Intercompany
financial debt 8.6 8.6 8.6
Other financial debt 11.9 11.9 11.9
Accruals on financial
liabilities
(incl. Interco.) 0.0 0.0 0.0
--------------- ---------- ----------
Total financial
liabilities 20.5 20.5 20.5
--------------- ---------- ----------
Financial indebtedness/
(positive fin. Position) 20.2 16.8 16.8
=============== ========== ==========
Available liquidity grew from EUR400,000 to EUR3.7 million, while
financial liabilities remained unchanged compared to 31 December
2003.
Significant Events during July and August
[Parmalat summarizes the principal events] that occurred during
the course of July and in the month of August:
12 July Completion of the refinancing of the Group's
Canadian subsidiaries
14 July Announcement of the recovery ratios in the
proposed Composition with Creditors and
publication of sections of the non-final
version of the Group's Restructuring Plan.
19 July Publication of the economic and balance sheet
positions of Parmalat SpA in Extraordinary
Administration, Parmalat Finanziaria SpA in
Extraordinary Administration and the
consolidated figures for the Parmalat Group.
With regard to the latter a brief report was
also published covering the management of the
Group as well as a report by the external
auditors.
19 July Sale of the Assets of Parmalat De Mexico S.A.
De CV and signing of licensing contracts for
Parmalat brands.
21 July Establishment of the Parmalat Creditors
Foundation by those Parmalat companies in
Extraordinary Administration that are subject
to the proposed Composition with Creditors.
22 July Initiation by the Competition Authorities in
Italy of two cases against Parmalat relating
to the failure to comply with conditions set
out in 1999 relating to the authorization to
require Eurolat from the Cirio Group
(specifically the disposal of Newlat) and for
the failure to communicate in advance the
acquisition of a controlling position in
Carnini. The actions that are the subject of
the investigation are entirely attributable
to the previous management of Parmalat.
23 July Authorization of the Parmalat Restructuring
Plan by the Minister of Production
Activities, Antonio Marzano, in agreement
with the Minister for Agricultural and
Forestry Affairs Gianni Alemanno.
26 July The acquisition by the Parmalat Creditors
Foundation of the entire share capital of
Parmalat SpA (formerly Cimabue S.r.l.). This
company will become the third party Assumptor
for the Composition with Creditors.
27 July The recognition of the legal validity of the
Parmalat Creditors Foundation by the
Prefecture of Parma.
29 July The announcement of an agreement, without the
payment of any fine, by Parmalat Finanziaria
SpA in Extraordinary Administration to settle
the case bought before the New York Court by
the Securities and Exchange Commission of the
United States.
29 July The filing by the Extraordinary Commissioner
of a complaint with the Superior Court of
Bergen County in the State of New Jersey
requesting that Citigroup Inc. and a number
of its subsidiaries be required to pay
damages. The Extraordinary Commissioner
contends that the companies named in the
action played an active part over an extended
period of time in bringing about damages to
the Parmalat Group which as at today are
estimated to be a value of approximately
US$10 billion.
30 July The admission into Extraordinary
Administration, by decree of the Minister of
Production Activities, of Streglio SpA and
the appointment of Dr. Enrico Bondi as
Extraordinary Commissioner of [Streglio SpA].
On 27 July 2004 Streglio SpA had requested
insolvency status with the Civil Court of
Parma.
6 August Request to the Court of Parma that UBS
Limited be subject to a claw-back action
following bankruptcy for an amount of EUR290
million plus interest.
9 August Request to the Court of Parma that Deutsche
Bank SpA be subject to a claw-back action
following bankruptcy for an amount of EUR17
million plus interest.
10 August Publication in a number of European daily
newspapers of the decrees of the delegated
Judge dated 3 August 2004 and 6 August 2004
relative to the proposed composition with
Creditors and the summary Restructuring Plan
for the Parmalat Group. The relevant press
release was not distributed into the United
States of America or other restricted
territories.
11 August Notification to bond holders of the procedure
to unblock their securities. As a
consequence of this holders of such bonds are
able to trade their securities.
13 August Approval by the local court in Brazil of the
request for protection from creditors of
Parmalat Brasil and Parmalat Partecipacoes as
presented by Felsberg & Associates.
17 August Publication of a Notice relating to the
registration as credits of Private
Placements. This Notice makes clear that
holders of Private Placements are required to
request inclusion among the issuing company's
creditors in order to have their status as
creditors confirmed.
18 August The filing by the Extraordinary Commissioner
of a complaint with the Circuit Court of Cook
County in the State of Illinois requesting
that the former external auditors of
Parmalat, Grant Thornton International and
Deloitte Touche Tohmatsu and their US and
Italian subsidiaries be required to pay
damages relating a series of accusations.
The Extraordinary Commissioner asserts that
the former external auditors played an
absolutely central role in the causing of
damages that overcame the Parmalat Group and
in relation to this is requesting that the
firms in questions be condemned to pay
damages of no less than US$10 billion.
19 August Request to the Court of Parma that Credit
Suisse First Boston International be subject
to a claw-back action following bankruptcy
for an amount of EUR248.3 million plus
interest.
PILLOWTEX: July 2004 Cash Receipts & Disbursement Report
--------------------------------------------------------
Pillowtex, et al.
Actual Cash Flow
For the Month of July 2004
Accounts Receivable Collections $270,000
Brown & Joseph Fees (283,000)
Brown & Joseph Personnel (16,000)
Inventory Bulk Sales (6,000)
Property Tax Related to Asset Sale (48,000)
Property(Net) (65,000)
Miscellaneous Proceeds (7,000)
-----------
Total Proceeds (155,000)
Prepetition Cure Cost of Capital Leases -
Balance of 2003 Personal Property Tax -
Alliance Street Production -
Interest Expense(Term and Revolver) -
Idle Facility Cost (432,000)
Electric Demand Charge -
Retail Store Operating Costs -
Warehousing, Shipping & Billing 3,000
Freight & Duty -
Manufacturing -
Inventory Clean-up -
Accrued Employee Expenses -
Critical Vendor Payments -
Continuing Medical -
Terminated Medical -
Workers' Compensation/Other Insurance 10,000
Corporate 114,000
Severance/Retention 120,000
Warehouse Vacation Pay -
SB Capital Estate Charge Back -
Early Termination Fee -
DIP Fees -
Professional Fees 998,000
Miscellaneous Expenses 64,000
-----------
Total Expenses 877,000
-----------
Net Cash Flow ($1,032,000)
===========
Pillowtex, et al.
Disbursement Report
For the Month of July 2004
Net Payroll & Payroll Taxes Paid $343,263
Sales, Use & Other Taxes Paid 47,839
Inventory Purchases -
Interest on Long Term Debt -
Secured/Rental/Lease -
Utilities 14,116
Insurance 9,877
Administrative 282,723
Professional Fees 1,034,979
U.S. Trustee's Fees -
Others 84,062
-----------
Total for U.S. Trustee Fees $1,816,859
===========
Headquartered in Dallas, Texas, Pillowtex Corporation --
http://www.pillowtex.com/-- sold top-of-the-bed products to
virtually every major retailer in the U.S. and Canada. The
Company filed for Chapter 11 protection on November 14, 2000
(Bankr. Del. Case No. 00-4211), emerged from bankruptcy under a
chapter 11 plan, and filed a second time on July 30, 2003 (Bankr.
Del. Case No. 03-12339). The second chapter 11 filing triggered
sales of substantially all of the Company's assets. David G.
Heiman, Esq., at Jones Day, and William H. Sudell, Jr., Esq., at
Morris Nichols Arsht & Tunnel, represent the Debtors. On July 30,
2003, the Company listed $548,003,000 in assets and $475,859,000
in debts. (Pillowtex Bankruptcy News, Issue No. 69; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
SPIEGEL: Net Loss Climbs to $12.8MM for Period Ended July 3, 2004
-----------------------------------------------------------------
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Balance Sheet
As of July 3, 2004
ASSETS
Current assets:
Cash and cash equivalents $194,275,000
Receivables, net 46,270,000
Inventories 183,398,000
Prepaid expenses 44,294,000
Assets of discontinued operations 69,257,000
--------------
Total current assets 537,494,000
--------------
Property and equipment, net 170,143,000
Intangible assets, net 135,608,000
Other assets 27,055,000
--------------
Total assets $870,300,000
==============
LIABILITIES and STOCKHOLDERS' DEFICIT
Liabilities not subject to compromise:
Current liabilities:
Accounts payable and accrued liabilities $235,270,000
Current portion of long-term debt 48,000,000
Liabilities of discontinued operations 85,919,000
--------------
Total current liabilities 369,189,000
--------------
Deferred lease obligation 11,323,000
Liabilities subject to compromise 1,439,882,000
Total liabilities 1,820,394,000
--------------
Stockholders' deficit:
Class A non-voting common stock,
$1.00 par value; authorized 16,000,000
shares; 14,945,144 shares issued
and outstanding 14,945,000
Class B voting common stock, $1.00
par value; authorized 121,500,000 shares;
117,009,869 shares issued & outstanding 117,010,000
Additional paid-in capital 329,489,000
Accumulated other comprehensive loss (25,136,000)
Accumulated deficit (1,386,402,000)
--------------
Total stockholders' deficit (950,094,000)
--------------
Total liabilities & stockholders' deficit $870,300,000
==============
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Statement of Operations
Five Weeks Ended July 3, 2004
Net sales and other revenues:
Net sales $109,719,000
Other revenue 13,002,000
--------------
122,721,000
Cost of sales and operating expenses:
Cost of sales, including buying
and occupancy expenses 62,274,000
Selling, general & administrative expenses 50,088,000
--------------
112,362,000
Estimated loss of non-debtors (321,000)
Operating Income 10,038,000
Interest expense 2,102,000
--------------
Income from operations before reorganization items 7,936,000
--------------
Reorganization items, net 16,073,000
Income Tax 3,145,000
--------------
Loss from operations (11,282,000)
--------------
Discontinued operations:
Loss from discontinued operations (1,522,000)
--------------
Net loss ($12,804,000)
==============
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Statement of Cash Flows
Five Weeks Ended July 3, 2004
Cash flows from operating activities:
Net loss ($12,804,000)
Adjustments to reconcile net loss to net cash
used in operating activities:
Reorganization items, net 16,073,000
Depreciation and amortization 5,098,000
Change in assets and liabilities:
(Increase) decrease in receivables, net (2,907,000)
(Increase) decrease in investments/advances 251,000
(Increase) decrease in inventories (4,371,000)
(Increase) decrease in prepaid expenses (1,183,000)
Increase (decrease) in accounts payable
and other accrued liabilities (12,128,000)
Increase (decrease) in net liabilities of
discontinued operations 19,125,000
(Increase) decrease in refundable
income taxes 1,863,000
--------------
Net cash provided by operating activities 9,017,000
--------------
Net cash used for reorganization items (3,638,000)
Cash flows from investing activities:
Net additions to property and equipment (2,342,000)
Net reductions to other assets 96,000
--------------
Net cash provided by investing activities (2,246,000)
--------------
Net cash provided by financing activities -
--------------
Effect of exchange rate changes on cash 325,000
--------------
Net change in cash and cash equivalents 3,458,000
Cash & cash equivalents, beginning of period 190,817,000
--------------
Cash & cash equivalents, end of period $194,275,000
==============
Headquartered in Downers Grove, Illinois, Spiegel, Inc. --
http://www.spiegel.com/-- is a leading international general
merchandise and specialty retailer that offers apparel, home
furnishings and other merchandise through catalogs, e-commerce
sites and approximately 560 retail stores. The Company filed for
Chapter 11 protection on March 17, 2003 (Bankr. S.D.N.Y. Case No.
03-11540). James L. Garrity, Jr., Esq., and Marc B. Hankin, Esq.,
at Shearman & Sterling represent the Debtors in their
restructuring efforts. When the Company filed for protection from
its creditors, it listed $1,737,474,862 in assets and
$1,706,761,176 in debts. (Spiegel Bankruptcy News, Issue No. 31;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
TRENWICK GROUP: Reports $2,012,356 Net Loss in July 2004
--------------------------------------------------------
On August 20, 2004, Trenwick America Corporation, Trenwick Group
Ltd. (in provisional liquidation) and LaSalle Re Holdings Limited
(in provisional liquidation) filed monthly operating reports for
the month ended July 31, 2004 and the period from August 20, 2003
to July 31, 2004 with the United States Bankruptcy Court for the
District of Delaware.
Trenwick Group Ltd. (Bankr. D. Del. Case No. 03-12636), reports a
$2,012,356 net loss for the month ended July 2004, and a
cumulative $88,879,795 loss for the period from August 20, 2003 to
July 31, 2004.
A full-text copy of Trenwick Group Ltd.'s July 2004 Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1122211/000116923204004797/d60646_99-1.txt
Trenwick America Corporation (Bankr. D. Del. Case No. 03-12635)
reports a $554,780 net profit in July 2004 and a cumulative
$60,770,122 loss during the course of its chapter 11
restructuring.
A full-text copy of Trenwick America's July 2004 Monthly Operating
Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1122211/000116923204004797/d60646_99-2.txt
LaSalle Re Holdings Limited (Bankr. D. Del. Case No. 03-12637)
reports a $2,854,662 net loss in July 2004 and a cumulative
$6,693,744 post-petition loss.
A full-text copy of LaSalle's July 2004 Monthly Operating Report
is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1122211/000116923204004797/d60646_99-3.txt
On August 20, 2003, TGL and LaSalle Re Holdings Limited (in
provisional liquidation) filed insolvency proceedings in the
Supreme Court of Bermuda. On August 22, 2003, the Bermuda Court
granted an order appointing Michael Morrison and John Wardrop,
partners of KPMG in Bermuda and KPMG LLP in the United Kingdom,
respectfully, as Joint Provisional Liquidators in respect of TGL
and LaSalle. The Bermuda Court granted the JPLs the power to
oversee the continuation and reorganization of these companies'
businesses under the control of their boards of directors and
under the supervision of the Bankruptcy Court and the Bermuda
Court. The JPLs have not audited the contents of this report.
*********
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
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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
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liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
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Monthly Operating Reports are summarized in every Saturday edition
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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
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