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.

                            *********

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, Rizande B. Delos Santos, Jazel P.
Laureno, Cherry Soriano-Baaclo, Marjorie Sabijon, Terence Patrick
F. Casquejo 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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