/raid1/www/Hosts/bankrupt/TCR_Public/040918.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 18, 2004, Vol. 8, No. 201
Headlines
FGI GROUP: Files August 2004 Monthly Operating Report
KEYSTONE CONSOLIDATED: August Net Income Narrows to $1.7 Million
NEWPOWER HOLDINGS: Files July 2004 Monthly Operating Report
RCN CORPORATION: Posts $22.5 Million Net Loss for July 2004
RELIANCE GROUP: Releases August 2004 Monthly Operating Report
SK GLOBAL: Reports $735,616 Net Loss in August 2004
SONICBLUE INC: Files July 2004 Monthly Operating Report
TOUCH AMERICA: Files April & May 2004 Monthly Operating Reports
TWINLAB CORPORATION: Files August 2004 Monthly Operating Report
WESTPOINT STEVENS: Reports $17.5 Million Net Loss in July 2004
WESTPOINT STEVENS: WP Stevens I Posts $3.6 Mil. Net Income in July
WESTPOINT STEVENS: JP Stevens' July 2004 Monthly Operating Report
WESTPOINT STEVENS: JP Stevens Enterprises' July Operating Report
WESTPOINT STEVENS: WP Stevens Stores' July 2004 Operating Report
*********
FGI GROUP: Files August 2004 Monthly Operating Report
-----------------------------------------------------
On September 14, 2004, FGI Group Inc. filed a monthly operating
report for Florsheim Group, Inc., et al., and its debtor-
affiliates covering the period ended August 31, 2004, with the
United States Bankruptcy Court for the Northern District of
Illinois, Eastern Division.
FGI Group reports a $516,625.52 cash balance at August 31, 2004,
and provides a summary of cash accounts; receipts listings;
disbursements listings; loan account; statement of aged
receivables and accounts payable aging; tax questionnaire; and
declaration.
Full-text copies of FGI Group's August 2004 Operating Reports are
available at no charge at:
http://www.sec.gov/Archives/edgar/data/928908/000095013704007724/c88183exv99w1.txt
Florsheim Group, Inc. (OTC BB: FLSC.OB), filed for chapter 11
protection on March 4, 2002 (Bankr. N.D. Ill. Case No. 02 B 08209)
to facilitate a sale of its U.S. wholesale business and 23 retail
stores to its U.S. assets to the Weyco Group, Inc. (NASDAQ: WEYS)
for $45.6 million in cash, subject to post closing adjustment.
KEYSTONE CONSOLIDATED: August Net Income Narrows to $1.7 Million
----------------------------------------------------------------
For the month ending August 31, 2004, Keystone Consolidated
Industries reports earning $1,680,269 on $32,205,717 of net sales.
At August 31, 2004, Keystone Consolidated's balance sheet shows:
Current Assets $ 82,892,447
Total Assets 314,246,796
Current Liabilities 158,350,647
Stockholders' Deficit $ 17,551,215
A full-text copy of Keystone Consolidated Industries' August 2004
Monthly Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/55604/000005560404000034/exhibit991aug.txt
On February 26, 2004, Keystone Consolidated Industries, Inc.,
together with five of its direct and indirect subsidiaries
(FV Steel and Wire Company, DeSoto Environmental Management,
Inc., J.L. Prescott Company, Sherman Wire Company f/k/a DeSoto,
Inc., and Sherman Wire of Caldwell, Inc.), filed voluntary
petitions for relief under Chapter 11 of Title 11 of the United
States Code in the United States Bankruptcy Court for the Eastern
District of Wisconsin in Milwaukee.
NEWPOWER HOLDINGS: Files July 2004 Monthly Operating Report
-----------------------------------------------------------
On September 7, 2004, NewPower Holdings, Inc., filed its July 2004
Monthly Operating Report with the U.S. Bankruptcy Court for the
Northern District of Georgia, Newnan Division. The company reports
an opening cash balance of $93,558,000 and a closing cash balance
of $92,653,000.
A full-text copy of NewPower Holdings' July 2004 Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1119307/000090514804003948/efc4-1610_exh991.txt
On August 15, 2003, the United States Bankruptcy Court for the
Northern District of Georgia, Newnan Division confirmed the Second
Amended Chapter 11 Plan with respect to NewPower Holdings, Inc.
and TNPC Holdings, Inc., a wholly owned subsidiary of the Company.
On February 28, 2003, the Bankruptcy Court previously confirmed
the Plan, and the Plan has been effective as of March 11, 2003,
with respect to The New Power Company, a wholly owned subsidiary
of the Company. The Plan became effective on October 9, 2003 with
respect to the Company and TNPC.
RCN CORPORATION: Posts $22.5 Million Net Loss for July 2004
-----------------------------------------------------------
RCN Corporation, Hot Spots Production, Inc.,
RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
(Debtors-in-Possession)
Unaudited Condensed Combined Consolidated Balance Sheets
As of July 31, 2004
(In Thousands)
ASSETS
Current Assets:
Cash and temporary cash investments $775
Other current assets 753
--------------
Total current assets 1,528
Accounts receivable from non-combined subsidiaries 913,709
Investment in and advances to
non-combined subsidiaries 1,487,930
Deferred charges and other assets 250,460
--------------
Total assets $2,653,627
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Current maturities of long-term debt $451,935
Accounts payable and accrued expenses 4,556
--------------
Total current liabilities 456,491
Accounts payable to non-combined subsidiaries 1,473,349
Prepetition liabilities subject to compromise
Liabilities subject to compromise 1,191,045
Series A redeemable Preferred stock 350,362
Series B redeemable Preferred stock 1,474,850
Shareholders' deficit:
Common stock 123,588
Additional paid in capital 2,153,264
Cumulative translation adjustment (17,288)
Unearned compensation expense (147)
Treasury stock (10,166)
Unrealized appreciation on investments (170)
Accumulated deficit (4,541,549)
--------------
Total shareholders' deficit (2,292,468)
--------------
Total liabilities and shareholders' deficit $2,653,629
==============
RCN Corporation, Hot Spots Production, Inc.,
RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
(Debtors-in-Possession)
Unaudited Condensed Combined Statement of Operations
For the period July 1, 2004 through July 31, 2004
(In Thousands)
Revenues -
Costs and expenses $55
Non-cash stock based compensation 356
Reorganization items 2,709
--------------
Operating loss (3,120)
Interest expense 3,458
Other expense 14
--------------
Loss before income taxes (6,592)
Equity in the income of non-combined subsidiaries (15,876)
--------------
Net loss ($22,468)
==============
RCN Corporation, Hot Spots Production, Inc.,
RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
(Debtors-in-Possession)
Unaudited Condensed Combined Statement of Cash Flows
For the period July 1, 2004 through July 31, 2004
(In Thousands)
Cash flows from operating activities:
Net loss ($22,468)
Non-cash stock based compensation 356
Equity income of non-combined subsidiaries 15,876
Accretion of discounted debt 338
Amortization of financing costs 537
--------------
Net cash used in operating activities (5,361)
Cash flows from financing activities:
Payment of long-term debt -
Investments from non-combined subsidiaries 5,361
--------------
Net cash provided by financing activities 5,361
--------------
Net increase (decrease) in cash and
temporary cash investments -
--------------
Beginning cash & temporary cash investments 775
--------------
Ending cash & temporary cash investments $775
==============
Headquartered in Princeton, New Jersey, RCN Corporation --
http://www.rcn.com/-- provides bundled Telecommunications
services. The Company, along with its affiliates, filed for
chapter 11 protection (Bankr. S.D.N.Y. Case No. 04-13638) on
May 27, 2004. Frederick D. Morris, Esq., and Jay M. Goffman,
Esq., at Skadden Arps Slate Meagher & Flom LLP, represent the
Debtors in their restructuring efforts. When the Debtors filed
for protection from their creditors, they listed $1,486,782,000 in
assets and $1,820,323,000 in liabilities.
RELIANCE GROUP: Releases August 2004 Monthly Operating Report
-------------------------------------------------------------
RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Balance Sheet,
excluding subsidiaries which
are not Debtors-in-Possession 31-Aug-2004
_____________________________________ ___________
ASSETS
Unrestricted Funds $57,472,000
----------------
Total 57,472,000
Accounts and Notes Receivable 13,090,000
Prepaid expenses and deposits 553,000
Due from Reliance Development Group,
less allowance of $59,334,000 0
Plant, property & equipment -
----------------
Total Assets $71,115,000
================
LIABILITIES & SHAREHOLDERS' DEFICIT
Liabilities not subject to compromise
Postpetition accounts payable $2,292,000
Professional fee holdback payable 2,133,000
Liabilities subject to compromise 1,025,318,000
----------------
Total liabilities 1,029,743,000
----------------
Shareholders' deficit:
Common stock 11,616,000
Additional paid in capital 558,541,000
Accumulated deficit (1,528,785,000)
----------------
Total shareholders' deficit (958,628,000)
----------------
Total liabilities & deficit $71,115,000
================
RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Statement of 1-Aug-2004
Operations, excluding subsidiaries to
which are not Debtors-in-Possession 31-Aug-2004
_____________________________________ ___________
Revenues $0
----------------
Costs and expenses:
Operating and administrative 130,000
Pension Plan Actuarial
Adjustments and Expenses 0
Depreciation 0
----------------
Total costs and expenses 130,000
----------------
Loss before reorganization items (130,000)
----------------
Reorganization items:
Professional fees 630,000
Increase in allowance on balance
due from Reliance Development
Group, Inc. 0
Reduction of balance due Reliance
Insurance Company per settlement -
Interest earned on accumulated
cash resulting from
Chapter 11 proceeding (68,000)
----------------
Total reorganization items 562,000
----------------
Income Tax benefits 0
----------------
Net Income ($692,000)
================
RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Statement of 1-Aug-2004
Cash Flows, excluding subsidiaries to
which are not Debtors-in-Possession 31-Aug-2004
_____________________________________ ___________
Cash flows from operating activities:
Loss from operations before
reorganization items ($130,000)
Adjustments to reconcile loss to
net cash provided by
operating activities:
Income Tax Recovery 0
Depreciation 0
Changes in:
Prepaid expenses 0
Postpetition payables 86,000
Increase in Liabilities
subject to compromise 0
----------------
Net cash (used) provided by
operating activities before
reorganization items (44,000)
----------------
Operating cash flows from
reorganization items:
Interest earned 68,000
Application of retainer
towards reorganization
professional fees 0
Payment of
reorganization items (524,000)
Distribution to Reliance
Insurance Company
(in liquidation) 0
----------------
Net cash used by
reorganization items (456,000)
----------------
Net cash used by
operating activities (500,000)
----------------
Cash flows from investing activities:
Receipt from Reliance
Development Group 0
----------------
Net cash provided by
investing activities 0
----------------
Cash flow from financing activities:
Proceeds of split dollar policies 0
----------------
Net cash provided by
financing activities 0
----------------
Net increase in cash (500,000)
Cash at beginning of period 57,972,000
----------------
Cash at end of period $57,472,000
================
Headquartered in New York, New York, Reliance Group Holdings, Inc.
-- http://www.rgh.com/-- is a holding company that owns 100% of
Reliance Financial Services Corporation. Reliance Financial, in
turn, owns 100% of Reliance Insurance Company. The holding and
intermediate finance companies filed for chapter 11 protection on
June 12, 2001 (Bankr. S.D.N.Y. Case No. 01-13403) listing
$12,598,054,000 in assets and $12,877,472,000 in debts. The
insurance unit is being liquidated by the Insurance Commissioner
of the Commonwealth of Pennsylvania. (Reliance Bankruptcy News,
Issue No. 60; Bankruptcy Creditors' Service, Inc., 215/945-7000)
SK GLOBAL: Reports $735,616 Net Loss in August 2004
---------------------------------------------------
SK Global America, Inc.
Unaudited Balance Sheet
As of August 31, 2004
ASSETS
Unrestricted Cash and cash equivalents $129,046,900
Restricted Cash and cash equivalents -
Accounts receivable - net 215,188,107
Interest receivables 1,021,333
Commission receivables 4,689,417
Other receivables 3,859,442
Suspense payment 1,637,287
Payment in advance 10,000
Inventories 13,706,937
Prepaid expenses 400,051
Other Current Assets -
---------------
Total Current Assets 369,559,473
Real Property and improvements 10,447
Machinery and equipment -
Furniture, fixtures and office equipment 775,916
Leasehold improvements 237,368
Vehicles 87,641
Less Accumulated Depreciation (885,499)
---------------
Total Property & Equipment 225,872
Loans to Insiders
Other Assets 64,760,143
---------------
Total Other Assets 64,760,143
---------------
TOTAL ASSETS $434,545,488
===============
LIABILITIES AND OWNER EQUITY
Liabilities not subject to compromise:
Accounts Payable $1,204,572
---------------
Total Prepetition Liabilities 1,204,572
Liabilities subject to compromise:
Secured debt 133,669,769
Priority debt 38,726
Unsecured debt 2,899,684,603
---------------
Total Prepetition Liabilities 3,033,393,098
---------------
Total Liabilities 3,034,597,670
Owner Equity:
Capital Stock 20,000,000
Additional paid-in capital 70,000,000
Owner's Equity Account -
Retained earnings - prepetition (2,679,352,128)
Retained earnings - postpetition (10,700,054)
---------------
Net Owner Equity (2,600,052,182)
---------------
T0TAL LIABILITIES & OWNERS' EQUITY $434,545,488
===============
SK Global America, Inc.
Unaudited Statement of Operations
August 1 to August 31, 2004
Revenues
Gross Revenues $3,997,916
Less: Returns and Allowances 26,537
---------------
Net Revenue 3,971,379
Cost of Goods Sold
Beginning Inventory 11,470,684
Add: Purchases 6,100,324
Add: Cost of Labor 0
Add: Other Costs 0
Less: Ending Inventory 13,706,937
---------------
Cost of Goods Sold 3,864,072
---------------
Gross Profit 107,308
Operating Expenses
Salaries and employee benefits 164,907
Travel and Related Expenses 12,336
Utilities 2,530
Materials and supplies -
Advertising & Promotions -
Communications 11,804
Delivery 23,812
Rentals and Royalties 15,814
Property & Bus License taxes 103
Insurance 841
Direct & Indirect selling expenses 128,454
Repairs & Maintenance 1,400
Other 282,002
---------------
Total Operating Expenses before depreciation 644,004
Depreciation/Depletion/Amortization 8,058
---------------
Net Profit (Loss) before other income & expenses (544,755)
Other Income and Expenses
Other Income 991,561
Interest Expense 13,138
Other Expense -
---------------
Net Profit (Loss) before Reorganization Items 433,668
Reorganization Items
Professional fees (188,768)
U.S. Trustee Quarterly fees (10,000)
Interest earned on accum. cash from Chap. 11 -
Gain (Loss) from sale of equipment (970,516)
Other Reorganization expenses -
Income Taxes -
---------------
NET PROFIT (LOSS) ($735,616)
===============
SK Global America, Inc.
Unaudited Schedule of Cash Receipts and Disbursements
August 1 to August 31, 2004
CASH -- BEGINNING OF MONTH $128,538,626
---------------
Receipts
Accounts Receivable 5,772,472
Sale of Assets 28,890
Other 1,234,294
Transfers (from DIP accounts) -
---------------
Total Receipts 7,035,656
Disbursements
Payroll 69,067
Payroll Taxes 21,233
Other Taxes -
Inventory purchases 6,077,056
Rental/leases 15,814
Insurance -
Administrative -
Selling -
Other 344,214
Professional Fees
U.S. Trustee Quarterly Fees -
---------------
Total Disbursements 6,527,383
Net cash flow 508,273
---------------
CASH -- END OF MONTH $129,046,900
===============
Headquartered in Fort Lee, New Jersey, SK Global America, Inc., is
a subsidiary of SK Global Co., Ltd., one of the world's leading
trading companies. The Debtors file for chapter 11 protection on
July 21, 2003 (Bankr. S.D.N.Y. Case No. 03-14625). Albert Togut,
Esq., and Scott E. Ratner, Esq., at Togut, Segal & Segal, LLP,
represent the Debtors in their restructuring efforts. When they
filed for bankruptcy, the Debtors reported $3,268,611,000 in
assets and $3,167,800,000 of liabilities.
SONICBLUE INC: Files July 2004 Monthly Operating Report
-------------------------------------------------------
At July 31, 2004, SONICblue Incorporated reports that it is
sitting on $79.7 million of cash, has accrued $566,017 in
postpetition liabilities and faces a $236,904,166 mountain of
prepetition debts.
A full-text copy of SONICblue Inc.'s July 2004 Operating Report is
available at no charge at:
http://www.sec.gov/Archives/edgar/data/850519/000089161804001239/f01747exv99w1.txt
Headquartered in Santa Clara, California, SONICblue Incorporated
is involved in the converging Internet, digital media,
entertainment and consumer electronics markets. The Company,
together with three of its wholly owned subsidiaries, Diamond
Multimedia Systems, Inc., ReplayTV, Inc., and Sensory Science
Corporation, filed voluntary petitions for bankruptcy under
Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Northern District of California,
San Jose Division (Case No. 03-51775).
TOUCH AMERICA: Files April & May 2004 Monthly Operating Reports
---------------------------------------------------------------
On June 19, 2003, Touch America Holdings, Inc. and subsidiaries
Touch America, Inc., Touch America Intangible Holding Company,
LLC, Touch America Purchasing Company, LLC, Entech, LLC, American
Fiber Touch, LLC, and Sierra Touch America, LLC, filed for Chapter
11 bankruptcy protection in the United States Bankruptcy Court for
the District of Delaware. These cases are jointly administered
under Touch America Holdings, Inc. case number 03-11915.
Touch America Holdings, Inc.'s balance sheet shows:
April 30, 2004 May 31, 2004
---------------- -----------------
Current Assets $681,084,443.04 $683,625,724.96
Total Assets 624,898,789.25 627,258,470.31
Postpetition Debts 30,742,355.37 33,243,326.80
Pre-petition Debts 252,752,914.51 252,752,914.51
Total Liabilities 283,495,269.88 285,996,241.31
Net Owner's Equity $341,403,519.37 $341,262,229.00
Full-text copies of the Debtors' Monthly Operating Reports are
available at no charge at:
April 2004 Monthly Operating Report:
http://www.sec.gov/Archives/edgar/data/1144835/000110465904027250/a04-10330_1ex99df.htm
May 2004 Monthly Operating Report:
http://www.sec.gov/Archives/edgar/data/1144835/000110465904027252/a04-10330_2ex99df.htm
On December 23, 2003, Touch America sold substantially all of its
Internet services, private line, and dark fiber assets to
360networks, a Vancouver, Canada based corporation for
$28,000,000. On December 23, 2003, Touch America also sold
certain dark fiber assets to Qwest Communications, Inc. for
$8,000,000. With the exception of certain wireless services, Touch
America ceased operations as of February 29, 2004.
Touch America had the exclusive right to file a Chapter 11
Liquidating Plan through April 14, 2004, and on that date, filed
a motion to extend the exclusivity period for an additional 45
days. On June 7, 2004, an order was entered by the Bankruptcy
Court granting the extension of the exclusive right to file a plan
until July 12, 2004 and the exclusive right to solicit
acceptances thereto until September 10, 2004.
On February 25, 2004, an order was entered by the Bankruptcy
Court denying a motion of certain shareholders directing the
United States Trustee to appoint an Official Committee of Equity
Security Holders. It is contemplated that funds will be available
for distribution to unsecured creditors, however the estimated
amount to be distributed and percentage of recovery to unsecured
creditors has not yet been determined. Touch America estimates
that the claims of creditors and costs of administration of its
bankruptcy will exceed the total amount of funds available to
Touch America's bankruptcy estate.
TWINLAB CORPORATION: Files August 2004 Monthly Operating Report
---------------------------------------------------------------
On September 15, 2004, Twinlab Corporation (n/k/a TL
Administration Corporation ), Twin Laboratories Inc. (n/k/a TL
Administration Inc.) and Twin Laboratories (UK) Ltd. (n/k/a TL
Administration (UK) Ltd.) filed its Monthly Operating Reports for
the month ended August 31, 2004 with the Securities and Exchange
Commission.
At August 31, 2004, Twinlab Corporation (n/k/a TL Administration
Corporation) reports that it has no independent means of
generating revenue due to its non-operation. As a holding
company, Twinlab's internal sources of funds to meet its cash
needs, including the payment of expenses, are dividends and other
permitted payments from its direct and indirect subsidiaries.
Full-text copies of the Debtors' August 2004 Monthly Operating
Report are available at no charge at:
http://www.sec.gov/Archives/edgar/data/1015868/000095012304011022/0000950123-04-011022-index.htm
On September 4, 2003, Twinlab Corporation, Twin Laboratories Inc.
and Twin Laboratories (UK) Ltd. commenced voluntary cases under
chapter 11 of title 11 of the United States Code in the United
States Bankruptcy Court for the Southern District of New York.
These chapter 11 cases are being jointly administered under
chapter 11 case number 03-15564 (CB) and are pending before the
Honorable Cornelius Blackshear.
In addition, on September 4, 2003, the Companies entered into
that certain asset purchase agreement with IdeaSphere, Inc. of
Grand Rapids, Michigan, pursuant to which the Companies sold
substantially all of their assets. The sale closed on Dec. 9,
2003, effective as of December 9, 2003. In connection with the
sale, the Debtors obtained an order from the Court authorizing
them to change their names. Twinlab Corporation changed its name
to TL Administration Corporation, Twin Laboratories Inc. changed
its name to TL Administration Inc. and Twin Laboratories (UK)
Ltd. changed its name to TL Administration (UK) Ltd.
The Debtors continue to operate as debtors-in-possession pursuant
to sections 1107(a) and 1108 of the Bankruptcy Code.
WESTPOINT STEVENS: Reports $17.5 Million Net Loss in July 2004
--------------------------------------------------------------
WESTPOINT STEVENS, INC.
Balance Sheet
At July 31, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents $5,419
Short-term investments -
Accounts receivable, net 230,465
Inventories 362,841
Prepaid expenses and other current assets 18,776
----------
Total current assets 617,501
Total investments and other assets 123,150
Goodwill -
Property, Plant and Equipment, net 570,546
----------
TOTAL ASSETS $1,311,197
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise:
Senior Credit Facility $439,655
DIP Credit Agreement 148,637
Second lien facility 165,000
Accrued interest payable 899
Accounts payable - trade 51,964
Accounts payable - intercompany 156,220
Other accrued liabilities 109,005
Deferred income taxes 4,256
Pension and other liabilities 142,834
----------
Total liabilities not subject to compromise 1,218,470
Liabilities Subject to Compromise
Senior notes 1,000,000
Deferred financing fees (5,695)
Accrued interest payable on Senior Notes 36,130
Accounts payable 27,084
Other payables and accrued liabilities 8,238
Pension and other liabilities 18,844
----------
Total liabilities not subject to compromise 1,084,601
----------
Total Liabilities 2,303,071
Shareholders' Equity (Deficit)
Equity of subsidiaries (123,757)
Common stock 711
Capital surplus/Treasury Stock 51,436
Retained earnings (deficit) (803,104)
Minimum pension liability adjustment (101,921)
Other adjustments (15,239)
Unearned compensation -
----------
Stockholders' Equity (Deficit) (991,874)
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $1,311,197
==========
WESTPOINT STEVENS, INC.
Statement of Operations
Month Ended July 31, 2004
(in thousands)
Total sales $144,877
Cost of sales 133,667
----------
Gross profit 11,210
Selling and administrative expenses
Selling expenses 4,880
Warehousing and shipping 6,952
Advertising 511
Division administrative expense 1,173
MIS expense 1,884
Corporate administrative expense 1,665
----------
Total selling and administrative expense 17,065
Restructuring and impairment charge -
Goodwill impairment charge -
----------
Profit (loss) from operations (5,855)
Interest expense
Interest expense - outside 7,553
Capitalized interest expense -
Interest expense - intercompany 300
Interest income -
Interest income - intercompany -
----------
Net interest expense 7,853
Other expense
Miscellaneous 1,114
Royalties - intercompany 2,725
Transaction gain/loss -
----------
Total other expense 3,839
Other income
Royalties - intercompany -
Dividends -
Sale of assets 101
Miscellaneous 4
----------
Total other income 105
----------
Net other expense 3,734
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items (17,442)
Chapter 11 reorganization expenses 1,766
Income tax expense (benefit) (1,701)
Extraordinary item - net of taxes -
----------
Net Income (loss) ($17,507)
==========
WESTPOINT STEVENS, INC.
Statement of Cash Flows
Month Ended July 31, 2004
(in thousands)
Cash flows from operations:
Net income (loss) ($17,507)
Restructuring -
Equity adjustments (879)
Depreciation and amortization expense 6,031
Gain on sale of assets (101)
Working Capital Changes
Decrease/(increase) - accounts receivable (8,383)
Decrease/(increase) - inventories 17,600
Decrease/(increase) - other current assets 886
Decrease/(increase) - other non-current
assets & debts 1,339
Increase/(decrease) - accounts payable (trade) 1,267
Increase/(decrease) - a/p (intercompany) 9,256
Increase/(decrease) - accrued liabilities (15,660)
Increase/(decrease) - accrued interest payable (4,712)
Increase/(decrease) - pension and other liabilities 1,285
Increase/(decrease) - deferred federal income tax (1,117)
----------
Total cash flows from operations (10,695)
Cash flows from investing activities:
Capital expenditures (1,365)
Transfers -
Net proceeds from sale of assets 1,231
----------
Total cash flows from investing (134)
Cash flows from financing activities:
Increase/(decrease)- DIP Credit Agreement 11,425
----------
Total cash flows from financing 11,425
Beginning cash balance 4,823
Change in cash 596
----------
Ending cash balance $5,419
==========
Headquartered in West Point, Georgia, WestPoint Stevens, Inc.,
makes bed linens, bath towels, comforters, blankets, pillows,
table covers, and window trimmings. It makes the Martex, Utica,
Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as
well as the Martha Stewart bed and bath lines; other licensed
brands include Ralph Lauren, Disney, and Joe Boxer. Department
stores, mass retailers, and bed and bath stores are its main
customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts.
WESTPOINT STEVENS: WP Stevens I Posts $3.6 Mil. Net Income in July
------------------------------------------------------------------
WESTPOINT STEVENS, INC., I
Balance Sheet
At July 31, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents $170
Accounts receivable - intercompany 2,780
Inventories 13,082
Prepaid expenses and other current assets -
----------
Total current assets 16,032
Total investments and other assets 124,052
Property, Plant and Equipment, net 12,459
Goodwill -
----------
TOTAL ASSETS $152,543
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise
Senior Credit Facility -
DIP Credit Agreement -
Long-term debt classified as current -
Accrued interest payable -
Accounts payable - trade $1,020
Accounts payable - intercompany -
Other accrued liabilities 10,569
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise 11,589
Liabilities Subject to Compromise
Senior notes -
Deferred financing fees -
Accrued interest payable on Senior Notes -
Accounts payable 1,400
Other payables and accrued liabilities -
Pension and other liabilities -
----------
Total Liabilities Subject to Compromise 1,400
----------
Total liabilities 12,989
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 1
Capital surplus/Treasury Stock 70,559
Retained earnings (deficit) 68,994
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Shareholders' Equity (Deficit) 139,554
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $152,543
==========
WESTPOINT STEVENS, INC., I
Statement of Operations
Month Ended July 31, 2004
(in thousands)
Net sales $8,480
Cost of goods sold 5,523
----------
Gross earnings 2,957
Selling and administrative expenses
Selling expenses 1
Warehousing and shipping 243
Advertising -
Division administrative expense -
MIS expense -
Corporate administrative expense 170
----------
Total selling and administrative expense 414
Restructuring and impairment charge -
Goodwill impairment charge -
----------
Operating earnings (loss) 2,543
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany -
Interest income -
Interest income - intercompany 388
----------
Net interest expense (388)
Other expense
Miscellaneous -
Royalties - intercompany 190
Transaction gain/loss -
----------
Total other expense 190
Other income
Royalties - intercompany 2,858
Dividends -
Sale of assets -
Miscellaneous -
----------
Total other income 2,858
----------
Net other expense (2,668)
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items 5,599
Chapter 11 reorganization expenses -
Income tax expense (benefit) 1,963
Extraordinary item - net of taxes -
----------
Net Income (loss) $3,636
==========
WESTPOINT STEVENS, INC., I
Statement of Cash Flows
Month Ended July 31, 2004
(in thousands)
Cash flows from operations:
Net income (loss) $3,636
Non-cash items
Depreciation and amortization 139
Working Capital Changes
Decrease/(increase) - a/r (customers) -
Decrease/(increase) - a/r (intercompany) (2,780)
Decrease/(increase) - inventories 1,180
Decrease/(increase) - other current assets -
Decrease/(increase) - other non-current assets -
Increase/(decrease) - accounts payable (trade) 261
Increase/(decrease) - a/p (intercompany) (4,844)
Increase/(decrease) - accrued liabilities 2,437
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
----------
Total cash flows from operations 29
Cash flows from investing activities:
Capital expenditures (2)
Transfers -
Net proceeds from sale of assets -
----------
Total cash flows from investing (2)
Cash flows from financing activities:
Increase/(decrease)- DIP Credit Agreement -
----------
Total cash flows from financing -
Beginning cash balance 143
Change in cash 27
----------
Ending cash balance $170
==========
Headquartered in West Point, Georgia, WestPoint Stevens, Inc.,
makes bed linens, bath towels, comforters, blankets, pillows,
table covers, and window trimmings. It makes the Martex, Utica,
Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as
well as the Martha Stewart bed and bath lines; other licensed
brands include Ralph Lauren, Disney, and Joe Boxer. Department
stores, mass retailers, and bed and bath stores are its main
customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts.
WESTPOINT STEVENS: JP Stevens' July 2004 Monthly Operating Report
-----------------------------------------------------------------
J.P. STEVENS & CO., INC.
Balance Sheet
At July 31, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents -
Accounts receivable - intercompany $110,749
Prepaid expenses and other current assets -
----------
Total current assets 110,749
Total investments & other assets 2,697
Goodwill -
----------
TOTAL ASSETS $113,446
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise
Accounts payable - intercompany -
Other accrued liabilities -
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise -
Liabilities Subject to Compromise -
Shareholders' Equity (Deficit)
Equity of subsidiaries $10,503
Common stock -
Capital surplus/Treasury Stock -
Retained earnings (deficit) 102,943
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Stockholders' Equity (Deficit) 113,446
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $113,446
==========
J.P. Stevens & Co., Inc., reports no income and cash flow
for July 2004.
Headquartered in West Point, Georgia, WestPoint Stevens, Inc.,
makes bed linens, bath towels, comforters, blankets, pillows,
table covers, and window trimmings. It makes the Martex, Utica,
Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as
well as the Martha Stewart bed and bath lines; other licensed
brands include Ralph Lauren, Disney, and Joe Boxer. Department
stores, mass retailers, and bed and bath stores are its main
customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts.
WESTPOINT STEVENS: JP Stevens Enterprises' July Operating Report
----------------------------------------------------------------
J.P. STEVENS ENTERPRISES, INC.
Balance Sheet
At July 31, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents $17
Accounts receivable - intercompany 16,326
Prepaid expenses and other current assets -
----------
Total current assets 16,343
Total investments & other assets -
Goodwill -
----------
TOTAL ASSETS $16,343
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise:
Accounts payable - intercompany -
Other accrued liabilities $266
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise 266
Liabilities Subject to Compromise -
----------
Total liabilities 266
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 2
Capital surplus/Treasury Stock -
Retained earnings (deficit) 16,075
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Stockholders' Equity (Deficit) 16,077
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $16,343
==========
J.P. STEVENS ENTERPRISES, INC.
Statement of Operations
Month Ended July 31, 2004
(in thousands)
Net sales -
Cost of goods sold -
----------
Gross earnings -
Selling and administrative expenses
Selling expenses $2
Warehousing and shipping -
Advertising -
Division administrative expense -
MIS expense -
Corporate administrative expense -
----------
Total selling and administrative expense 2
Restructuring and impairment charge -
Goodwill impairment charge -
----------
Operating earnings (loss) (2)
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany -
Interest income -
Interest income - intercompany 78
----------
Net interest expense (78)
Other expense
Miscellaneous -
Royalties - intercompany -
Transaction gain/loss -
----------
Total other expense -
Other income
Royalties - intercompany 190
Dividends -
Sale of assets -
Miscellaneous -
----------
Total other income 190
----------
Net other expense (190)
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items 266
Chapter 11 reorganization expenses -
Income tax expense (benefit) 94
Extraordinary item - net of taxes -
----------
Net Income (loss) $172
==========
J.P. STEVENS ENTERPRISES, INC.
Statement of Cash Flows
Month Ended July 31, 2004
(in thousands)
Cash flows from operations:
Net income (loss) $172
Non-cash items
Depreciation and amortization -
Working Capital Changes
Decrease/(increase) - a/r (intercompany) (266)
Decrease/(increase) - inventories -
Decrease/(increase) - other current assets -
Decrease/(increase) - other non-current assets -
Increase/(decrease) - accounts payable (trade) -
Increase/(decrease) - a/p (intercompany) -
Increase/(decrease) - accrued liabilities 93
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
----------
Total cash flows from operations (1)
Cash flows from investing activities
Capital expenditures -
Net proceeds from sale of assets -
----------
Total cash flows from investing -
Cash flows from financing activities
Increase/(decrease)- DIP Credit Agreement -
----------
Total cash flows from financing -
Beginning cash balance 18
Change in cash (1)
----------
Ending cash balance $17
==========
Headquartered in West Point, Georgia, WestPoint Stevens, Inc.,
makes bed linens, bath towels, comforters, blankets, pillows,
table covers, and window trimmings. It makes the Martex, Utica,
Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as
well as the Martha Stewart bed and bath lines; other licensed
brands include Ralph Lauren, Disney, and Joe Boxer. Department
stores, mass retailers, and bed and bath stores are its main
customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts.
WESTPOINT STEVENS: WP Stevens Stores' July 2004 Operating Report
----------------------------------------------------------------
WESTPOINT STEVENS STORES, INC.
Balance Sheet
At July 31, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents $1,973
Accounts receivable - customers 194
Accounts receivable - intercompany 5,214
Total Inventories 20,412
Prepaid expenses and other current assets 780
----------
Total current assets 28,573
Total investments & other assets -
Goodwill -
Property, plant and equipment, net 2,445
----------
TOTAL ASSETS $31,018
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise
Accounts payable - trade $475
Accounts payable -intercompany -
Other accrued liabilities 4,716
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise 5,191
----------
Liabilities Subject to Compromise
Accounts payable 1,673
----------
Total liabilities 6,864
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 1
Capital surplus/Treasury Stock 15,955
Retained earnings (deficit) 8,198
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Stockholders' Equity (Deficit) 24,154
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $31,018
==========
WESTPOINT STEVENS STORES, INC.
Statement of Operations
Month Ended July 31, 2004
(in thousands)
Net sales $9,778
Cost of goods sold 5,935
----------
Gross earnings 3,843
Selling and administrative expenses
Selling expenses 2,365
Warehousing and shipping 235
Advertising 193
Division administrative expense 294
MIS expense 69
Corporate administrative expense 103
----------
Total selling and administrative expense 3,259
Restructuring and impairment charge -
Goodwill impairment charge -
----------
Operating earnings (loss) 584
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany 193
Interest income -
Interest income - intercompany -
----------
Net interest expense 193
Other expense
Miscellaneous -
Royalties - intercompany -
Transaction gain/loss -
----------
Total other expense -
Other income
Royalties Intercompany -
Dividends -
Sale of assets -
Miscellaneous -
----------
Total other income -
----------
Net other expense -
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items 391
Chapter 11 reorganization expenses -
Income tax expense (benefit) 137
Extraordinary item - net of taxes -
----------
Net Income (loss) $254
==========
WESTPOINT STEVENS STORES, INC.
Statement of Cash Flows
Month Ended July 31, 2004
(in thousands)
Cash flows from operations:
Net income (loss) $254
Non-cash items
Depreciation and amortization 67
Gain on sale of assets -
Working Capital Changes
Decrease/(increase) - a/r (customers) (30)
Decrease/(increase) - a/r (intercompany) (1,349)
Decrease/(increase) - inventories 558
Decrease/(increase) - other current assets 23
Decrease/(increase) - other non-current assets -
Increase/(decrease) - accounts payable (trade) (131)
Increase/(decrease) - a/p (intercompany) -
Increase/(decrease) - accrued liabilities 786
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
----------
Total cash flows from operations 178
Cash flows from investing activities
Capital expenditures 7
Transfers -
Net proceeds from sale of assets -
----------
Total cash flows from investing 7
Cash flows from financing activities
Increase/(decrease)- DIP Credit Agreement -
----------
Total cash flows from financing -
Beginning cash balance 1,788
Change in cash 185
----------
Ending cash balance $1,973
==========
Headquartered in West Point, Georgia, WestPoint Stevens, Inc.,
makes bed linens, bath towels, comforters, blankets, pillows,
table covers, and window trimmings. It makes the Martex, Utica,
Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as
well as the Martha Stewart bed and bath lines; other licensed
brands include Ralph Lauren, Disney, and Joe Boxer. Department
stores, mass retailers, and bed and bath stores are its main
customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts.
*********
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*********
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