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
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.

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