TCR_Public/040925.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 25, 2004, Vol. 8, No. 207

                            Headlines


AMES DEPARTMENT: July 2004 Monthly Operating Report
AMES DEPARTMENT: August 2004 Monthly Operating Report
AVADO BRANDS: Posts $4.3 Million Net Loss in August 2004
DIVINE INC: Releases June to August 2004 Monthly Operating Reports
ENRON CORP: Releases April 2004 Monthly Operating Report

FAO INC: Reports Sitting on $38.9 Million of Cash in August 2004
FOOTSTAR INC: August 2004 Net Loss Narrows to $4.1 Million
INTERSTATE BAKERIES: Reports $1.6 Mil. in Total Assets at March 6
LIBERATE TECHNOLOGIES: Posts $3.1 Million Net Loss in August 2004
PARMALAT: Farmland Dairies Operating Report Ended August 21, 2004

PARMALAT: Milk Products Operating Report Ended August 21, 2004
PARMALAT USA: Releases Operating Report Ended August 21, 2004
PG&E NATIONAL: ET Gas' Revised May 2004 Monthly Operating Report
PG&E NATIONAL: ET Gas' July 2004 Monthly Operating Report
PG&E NATIONAL: ET Investments' July 2004 Monthly Operating Report

PG&E NATIONAL: ET Holdings' July 2004 Monthly Operating Report
RELIANCE GROUP: RIC Liquidator's 2nd Quarter Status Report
TOUCH AMERICA: Releases June 2004 Monthly Operating Report
WORLD ACCESS: Releases July 2004 Monthly Operating Report

                            *********

AMES DEPARTMENT: July 2004 Monthly Operating Report
---------------------------------------------------

            Ames Department Stores, Inc., and Subsidiaries
            Unaudited Consolidated Condensed Balance Sheets
                           At July 31, 2004
                            (In Thousands)

ASSETS
Current Assets:
     Cash and cash equivalents                             $1,232
     Restricted cash                                       59,669
     Receivables                                            1,131
                                                       ----------
Total current assets                                       62,032
                                                       ----------
Fixed assets                                                    -
                                                       ----------
Total assets                                              $62,032
                                                       ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Accounts payable:
        Trade                                             $60,824
        Other                                              13,435
                                                       ----------
     Total accounts payable                                74,259

Self-insurance reserves                                    32,729
Accrued expenses                                           24,234
Liabilities subject to compromise                         848,280
                                                       ----------
Total liabilities                                         979,502

Stockholders' equity (deficit)
     Common stock                                             295
     Additional paid-in capital                           533,393
     Accumulated deficit                               (1,450,236)
     Treasury stock                                          (922)
                                                       ----------
Total stockholders' deficit                              (914,740)
                                                       ----------
Total liabilities and stockholders' deficit               $62,032
                                                       ==========


            Ames Department Stores, Inc., and Subsidiaries
      Unaudited Consolidated Condensed Statements of Operations
                   For Four Weeks Ended July 31, 2004
                            (In Thousands)

Total revenue                                              $3,302

Costs and expenses
     Wind down expenses and other costs                     9,530
     Write off excess reserves                             (3,634)
     Professional fees                                        150
                                                       ----------
Income before income taxes                                 (2,744)
                                                       ----------
Net Income                                                ($2,744)
                                                       ==========


            Ames Department Stores, Inc., and Subsidiaries
      Unaudited Consolidated Condensed Statements of Cash Flows
                   For Four Weeks Ended July 31, 2004
                            (In Thousands)

Cash flows from operating activities:
     Net income                                           ($2,744)

     Expenses not requiring the outlay of cash:
        Gain on sale of fixed assets                            -
                                                       ----------
Cash used by operations                                    (2,744)

Changes in working capital:
     Decrease in receivables                                  173
     Decrease in accounts payable                          (3,329)
     Increase in accrued expenses & other liabilities       8,334
     Increase in restricted cash                             (511)
                                                       ----------
Net cash provided by operating activities                   1,923

Cash flows from financing activities:
     Proceeds from the sale of fixed assets                     -
     Borrowings under DIP Credit Agreement                      -
     Change in liabilities subject to compromise           (2,972)
                                                       ----------
Net cash provided by financing activities                  (2,972)

Decrease in cash and cash equivalents                      (1,049)
Cash and cash equivalents, beginning of period              2,281
                                                       ----------
Cash and cash equivalents, end of period                   $1,232
                                                       ==========

As of July 31, 2004, the Debtors have settled approximately 900
trade vendor and landlord claims for approximately $5.5 million,
and 9,300 former employee claims for approximately $5.4 million.


AMES DEPARTMENT: August 2004 Monthly Operating Report
-----------------------------------------------------

            Ames Department Stores, Inc., and Subsidiaries
            Unaudited Consolidated Condensed Balance Sheets
                           At August 28, 2004
                             (In Thousands)

ASSETS
Current Assets:
     Cash and cash equivalents                               $863
     Restricted cash                                       59,671
     Receivables                                              727
                                                       ----------
Total current assets                                       61,261
                                                       ----------
Fixed assets                                                   -
                                                       ----------
Total assets                                              $61,261
                                                       ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Accounts payable:
        Trade                                             $60,527
        Other                                              13,480
                                                       ----------
     Total accounts payable                                74,007

Self-insurance reserves                                    32,180
Accrued expenses                                           23,995
Liabilities subject to compromise                         848,619
                                                       ----------
Total liabilities                                         978,801

Stockholders' equity (deficit)
     Common stock                                             295
     Additional paid-in capital                           533,393
     Accumulated deficit                               (1,450,306)
     Treasury stock                                          (922)
                                                       ----------
Total stockholders' deficit                              (917,540)
                                                       ----------
Total liabilities and stockholders' deficit               $61,261
                                                       ==========


            Ames Department Stores, Inc., and Subsidiaries
      Unaudited Consolidated Condensed Statements of Operations
                   For Four Weeks Ended August 28, 2004
                            (In Thousands)

Total revenue                                                $439

Costs and expenses
     Wind down expenses and other costs                       359
     Write off excess reserves                                  -
     Professional fees                                        150
                                                       ----------
Income before income taxes                                    (70)
                                                       ----------
Net Loss                                                     ($70)
                                                       ==========


            Ames Department Stores, Inc., and Subsidiaries
      Unaudited Consolidated Condensed Statements of Cash Flows
                   For Four Weeks Ended August 28, 2004
                            (In Thousands)

Cash flows from operating activities:
     Net loss                                                ($70)

     Expenses not requiring the outlay of cash:
        Gain on sale of fixed assets                            -
                                                       ----------
Cash used by operations                                       (70)

Changes in working capital:
     Decrease in receivables                                  404
     Decrease in accounts payable                            (252)
     Increase in accrued expenses & other liabilities        (788)
     Increase in restricted cash                               (2)
                                                       ----------
Net cash provided by operating activities                    (708)

Cash flows from financing activities:
     Proceeds from the sale of fixed assets                     -
     Borrowings under DIP Credit Agreement                      -
     Change in liabilities subject to compromise              339
                                                       ----------
Net cash provided by financing activities                     339

Decrease in cash and cash equivalents                        (369)
Cash and cash equivalents, beginning of period              1,232
                                                       ----------
Cash and cash equivalents, end of period                     $863
                                                       ==========

As of August 28, 2004, the Debtors have three properties
remaining to be disposed.  From August 2002 through fiscal August
2004, the Debtors rejected, through the Bankruptcy Court, leases
for real property related to 247 store locations.

The principal balance of the General Electric Capital Corporation
DIP Facility had been paid down and the Debtors have provided
GECC $40 million to cash collateralize the Debtors' outstanding
letters of credit.  Furthermore, $17.4 million had been placed in
escrow.

As of August 28, 2004, the Debtors have no borrowings outstanding
under the DIP Credit Agreement, as amended.

The Debtors have settled approximately 920 trade vendors and
landlord claims for approximately $5.6 million, and 9,300 former
employee claims for $5.5 million.


AVADO BRANDS: Posts $4.3 Million Net Loss in August 2004
--------------------------------------------------------
Avado Brands, Inc., the owner and operator of the Don Pablo's and
Hops restaurant chains, delivered its August 2004 Monthly
Operating Report to the U.S. Bankruptcy Court on September 16,
2004.

For the period ended August 22, 2004, Don Pablo's reports $717,000
of net income, Hops reports a net loss of $2,916,000 and
$2,116,000 of net losses at the corporate level resulted in a
consolidated net loss of $4,315,000.

A full-text copy of Avado Brands, Inc.'s Monthly Operating Report
is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/849101/000084910104000029/moraug.txt


On February, 4, 2004, Avado Brands, Inc. filed a voluntary
petition under Chapter 11 of the United States Bankruptcy Code in
the United States Bankruptcy Court for the Northern District of
Texas. The Honorable Chief Judge Steven A. Felsenthal presides
over the case, which is administered as Case No. 04-31555. Deborah
D. Williamson, Esq., and Thomas Rice, Esq., at Cox & Smith
Incorporated represent the Debtors in their restructuring efforts.
Miller Buckfire Lewis Ying & Co., LLC is providing financial
advisory services. DDJ Capital is Avado's DIP lender.


DIVINE INC: Releases June to August 2004 Monthly Operating Reports
------------------------------------------------------------------
On July 20, 2004, divine, inc., (n/k/a Enivid, Inc.), released its
monthly operating reports for the months June 2004, July 2004, and
August 2004.  divine provides separate reports for its software,
hosting, and corporate businesses.  The Company also filed monthly
operating reports summarizing its disbursements and receipts for
the same period. divine's Software and Hosting business units'
operating reports show virtually no activity in June, July, August
2004, because these units were sold in May 2003.

divine, inc.'s balance sheet shows:


                June 30, 2004    July 31, 2004    August 31, 2004
                -------------   ---------------   ---------------
Total Current       
Assets         $61,005,310.05    $59,485,917.67    $58,217,147.29

Total Assets    61,620,941.05     60,101,548.67     58,832,778.29

Postpetition
Liabilities      2,099,063.23      2,239,488.28      3,106,788.42

Total
Prepetition   
Liabilities     25,939,512.00     25,939,512.00     25,939,512.00

Total
Liabilities     28,038,575.23     28,179,000.28     29,046,300.42

Net Loss       $(1,991,514.00)  $ (1,659,817.00)   $(2,121,150.00)


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


June 2004 Monthly Operating Reports:

Corporate:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d3.htm

Software Unit:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d1.htm

Hosting Unit:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d2.htm


July 2004 Monthly Operating Reports:

Corporate:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d7.htm

Software Unit:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d5.htm

Hosting Unit:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d6.htm


August 2004 Monthly Operating Reports:

Corporate:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d11.htm

Software Unit:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d9.htm

Hosting Unit:
   http://www.sec.gov/Archives/edgar/data/1097516/000110465904027912/a04-10339_1ex99d10.htm


divine, Inc., an affiliate of RoweCom Inc., described itself as an
extended enterprise company, which serves to make the most of
customer, employee, partner, and market interactions, and through
a holistic blend of Technology, services, and hosting solutions,
assist its clients in extending their enterprise. The Company
filed for chapter 11 protection on February 25, 2003 (Bankr. Mass.
Case No. 03-11472). Richard E. Mikels, Esq., Kevin J. Walsh, Esq.,
Adrienne K. Walker, Esq., at Mintz, Levin, Cohn, Ferris, Glovsky
and Popeo and J. Douglas Bacon, Esq., Stephen R. Tetro, Esq., and
Adam R. Skilken, Esq., represent the Debtors in their chapter 11
cases. When the Debtors filed for protection from their creditors,
they listed $271,372,593 in total assets and $191,957,065 in total
debts.


ENRON CORP: Releases April 2004 Monthly Operating Report
--------------------------------------------------------
On September 13, 2004, Enron Corp. and certain other
debtor-in-possession subsidiaries of the Company filed their
monthly operating report for April 2004 with the United States
Bankruptcy Court for the Southern District of New York.

A full-text copy of Enron Corp.'s April 2004 Operating Report is
available at:

   http://www.sec.gov/Archives/edgar/data/1024401/000095012904007090/h18462exv99w1.txt

                         Enron Corp. et al.
                     Cash Activity Rollforward
                 For the Month Ended April 30, 2004

Beginning cash                                   $1,710,000,000

Third party receipts                                419,000,000
Third party disbursements                          (123,000,000)
Net Intercompany                                    102,000,000
Transfer from or to Restricted Cash                (231,000,000)
                                                 ---------------
Ending balance                                   $1,877,000,000

                         Enron Corp. et al.
                    Tax Rollforward (Non-Payroll)
                 For the Month Ended April 30, 2004

Beginning Balance                                   $24,000,000

Accruals                                            (13,000,000)
Intercompany                                         10,000,000
Payments                                                      -
                                                 ---------------
Ending Balance                                      $21,000,000


                         Enron Corp. et al.
               Receivables Rollforward - Non-Commodity
                 For the Month Ended April 30, 2004

Beginning Balance                                  $296,000,000

Billings                                              2,000,000
Payments Received                                   (10,000,000)
Other Adjustments                                             -
                                                 ---------------
Ending Balance                                     $288,000,000


                         Enron Corp. et al.
                 Commodity Receivables and Payables
                 For the Month Ended April 30, 2004

Receivables                                        $147,000,000
Payables                                            648,000,000


Headquartered in Houston, Texas, Enron Corporation is in the midst
of restructuring various businesses for distribution as ongoing
companies to its creditors and liquidating its remaining
operations. Before the company agreed to be acquired, controversy
over accounting procedures had caused Enron's stock price and
credit rating to drop sharply. The Company filed for chapter 11
protection on December 2, 2001 (Bankr. S.D.N.Y. Case No.
01-16033). Judge Gonzalez confirmed the Company's Modified Fifth
Amended Plan on July 15, 2004, and numerous appeals followed.
Martin J. Bienenstock, Esq., and Brian S. Rosen, Esq., at Weil,
Gotshal & Manges, LLP, represent the Debtors in their
restructuring efforts. (Enron Bankruptcy News, Issue No. 125;
Bankruptcy Creditors' Service, Inc., 15/945-7000)


FAO INC: Reports Sitting on $38.9 Million of Cash in August 2004
----------------------------------------------------------------
In August 2004, FAO Inc. (n/k/a Children's Books & Toys, Inc.),
reports sitting on $38,956,855 of cash. Jerry A. Kollar, Senior
Vice President - Finance, reiterates its earlier stated position
that it does not expect any recovery to be available to its common
stockholders in connection with its bankruptcy.

A full-text copy of FAO Inc.'s and its subsidiaries' August 2004
Monthly Operating Report is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/878720/000110465904027966/a04-10610_1ex99d1.htm


FAO Inc. (n/k/a Children's Books & Toys, Inc.) and its wholly-
owned subsidiaries ZB Company, Inc., FAO Schwarz, Inc. (n/k/a Toy
Soldier, Inc.), The Right Start, Inc. (n/k/a TRS Liquidation Co.),
and Targoff-RS, LLC, filed on December 4, 2003 voluntary petitions
for reorganization under Chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware (Case No. 03-13672).


FOOTSTAR INC: August 2004 Net Loss Narrows to $4.1 Million
----------------------------------------------------------
On September 16, 2004, Footstar, Inc. and its debtor-affiliates
filed with the U.S. Bankruptcy Court their monthly operating
report for the month of August 2004.  The Debtors report a net
loss of $4.1 million in $61.7 million of net sales for August
2004.  At August 28, 2004, Footstar, Inc.'s consolidated balance
sheet shows:

      Total Current Assets       297,200,000
      Total Assets             $ 384,700,000
      Current Liabilities        113,100,000
      Total Liabilities          
        Subject to Compromise    177,100,000
      Shareholders' Equity     $  35,000,000

A full-text copy of Footstar, Inc.'s August 2004 Monthly Operating
Report is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1011308/000090951804000778/jd9-16ex99_1.txt


On March 2, 2004, Footstar, Inc. and substantially all of its
subsidiaries filed voluntary petitions under Chapter 11 of title
11, United States Code in the United States Bankruptcy Court for
the Southern District of New York (Case No. 04-22350). The
Debtors remain in possession of their assets and properties, and
continue to operate their businesses and manage their properties
as debtors-in-possession pursuant to sections 1107(a) and 1108 of
the Bankruptcy Code.


INTERSTATE BAKERIES: Reports $1.6 Mil. in Total Assets at March 6
-----------------------------------------------------------------

                 Interstate Bakeries Corporation
              Unaudited Consolidated Balance Sheets
                         At March 6, 2004
                          (In thousands)

                              Assets

Current assets:
   Accounts receivable                                 $180,038
   Inventories                                           71,576
   Other current assets                                  79,890
                                                    -----------
   Total current assets                                 331,504

Property and equipment:
   Land and buildings                                   450,399
   Machinery and equipment                            1,099,482
                                                    -----------
                                                      1,549,881

   Less accumulated depreciation                       (734,225)
                                                    -----------
   Net property and equipment                           815,656

Goodwill                                                215,346
Other intangible assets                                 190,875
Other assets                                             43,970
                                                    -----------
Total Assets                                         $1,597,351
                                                    ===========

               Liabilities and Stockholders' Equity

Current liabilities:
   Long-term debt payable within one year               $62,347
   Accounts payable                                     116,428
   Accrued expenses                                     243,405
                                                    -----------
   Total current liabilities                            422,180

Long-term debt                                          477,675
Other liabilities                                       364,070
                                                    -----------
   Total long-term liabilities                          841,745

Stockholders' equity:
   Preferred stock, par value $0.01 per share;
      authorized - 1,000,000 shares; issued - none            -

   Common stock, par value $0.01 per share;
      authorized - 120,000,000 shares;
      issued - 81,579,000 shares                            816

   Additional paid-in capital                           586,595
   Retained earnings                                    445,576
   Treasury stock, at cost                             (678,911)
   Treasury stock held in rabbi trust, at cost                -
   Unearned restricted stock compensation                (7,602)
   Accumulated other comprehensive loss                 (13,048)
                                                    -----------
   Total stockholders' equity                           333,426
                                                    -----------
Total Liabilities and Stockholders' Equity           $1,597,351
                                                    ===========

Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh baked
bread and sweet goods, under various national brand names,
including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R),
Merita(R) and Drake's(R).  The Company employs approximately
32,000 in 54 bakeries, more than 1,000 distribution centers and
1,200 thrift stores throughout the U.S.  The Company and seven of
its debtor-affiliates filed for chapter 11 protection on Sept. 22,
2004 (Bankr. W.D. Mo. Case No. 04-45814).  J. Eric Ivester, Esq.,
and Samuel S. Ory, 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
$1,626,425,000 in total assets and $1,321,713,000 in total debts
(excluding the $100,000,000 issue of 6.0% senior subordinated
convertible notes due August 15, 2014 on August 12, 2004).  


LIBERATE TECHNOLOGIES: Posts $3.1 Million Net Loss in August 2004
-----------------------------------------------------------------
On September 20, 2004, Liberate Technologies filed its monthly
operating report for the month of August 2004 with the United
States Bankruptcy Court for the Northern District of California
in connection with Liberate's voluntary petition for
reorganization under Chapter 11 of the United States Bankruptcy
Code (Case No. 04-31394). The Company reports a net loss of
$3,118,385 on $785,754 of net sales in August 2004.

At August 31, 2004, Liberate Technologies' balance sheet shows:

      Total Current Assets          $ 214,746,926
      Total Assets                    223,558,942
      Total Current Liabilities        10,377,582
      Total Pre-petition Liabilities   19,578,240
      Total Liabilities                29,955,822
      Total Equity                  $ 193,603,120

A full-text copy of Liberate Technologies' August 2004 Monthly
Operating Report is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1085776/000110465904028156/a04-10768_1ex99d01.htm


Headquartered in San Mateo, California, Liberate Technologies
provides software and services for digital cable systems. The
Company filed for chapter 11 protection on April 30, 2004 (Bankr.
D. Del. Case No. 04-11299). Daniel J. DeFranceschi, Esq. at
Richards, Layton & Finger represents the Debtor in its chapter 11
case. When the Company filed for bankruptcy protection, it listed
$257,000,000 in total assets and more than $21,700,000 in total
debts.


PARMALAT: Farmland Dairies Operating Report Ended August 21, 2004
-----------------------------------------------------------------

                       Farmland Dairies, LLC
                           Balance Sheet
                       As of August 21, 2004

Assets

Cash & Cash Equivalents                             $13,998,799
Accounts Receivable-Trade                            40,879,094
Accounts Rec.-Securitization                        (42,568,000)
Notes Receivable                                        262,909
Inventory                                            16,034,138
Prepaid Expenses                                     15,159,832
Other Current Assets                                    844,858
                                                 --------------
Total Current Assets                                 44,611,630

Fixed Assets                                        210,179,290
Accumulated Depreciation                            114,899,180
                                                 --------------
Net Fixed Assets                                     95,280,110

Other Assets                                         44,021,378
Intercompany Receivables                             82,156,782
                                                 --------------
Total Assets                                       $266,069,900
                                                 ==============

Liabilities Subject to Compromise:
   Accounts Payable                                  14,535,755
   Accrued Expenses                                   3,328,328
   Intercompany Payables                             25,318,781
   Capital Lease                                     95,000,000
                                                 --------------
Total Liabilities Subject to Compromise             138,182,864

Liabilities:
   Notes & Loans Payable                                      0
   Capital Leases - Short Term                                0
   Accounts Payable                                  16,861,001
   Accrued Expenses                                  24,507,057
                                                 --------------
Total Current Liabilities                            41,368,058
Notes & Loans Payable                                30,089,830
Capital Leases - Long Term                               45,274
Other                                                 8,389,235
                                                 --------------
Total Long Term Liabilities                          38,524,339

Intercompany Payables                               (82,068,989)
                                                 --------------
Total Liabilities                                   136,006,272

Equity
Paid In Capital                                     161,506,590
Accum Comprehensive Income                           (7,013,988)
Retained Earnings                                    11,323,693
YTD Net Income/(Loss)                               (35,752,667)
                                                 --------------
Total Equity                                        130,063,628
                                                 --------------
Total Liabilities & Owners' Equity                 $266,069,900
                                                 ==============


                       Farmland Dairies, LLC
                         Income Statement
               From July 25, 2004 to August 21, 2004

Revenues
   Gross sales                                      $34,293,126
   Less: Returns & discounts                            790,970
                                                 --------------
   Net sales                                         33,502,156

Expenses
   Raw Materials & Ingredients                       22,113,567
   Packaging                                          2,423,813
   Direct Labor                                         761,287
   Power                                                487,096
   Freight                                              381,013
   Distribution                                       2,475,704
   Industrial Depreciation                              399,108
   Production Overhead                                2,179,936
   Warehouse (Cooler)                                 1,491,797
   Marketing Costs                                      681,075
   Sales Admin Expenses                                 414,093
   General Expenses                                     927,322
   Financial Costs                                      820,459
   Goodwill/trademarks                                    6,757
   Extraordinary                                         65,383
   Corporate Allocation                                 275,000
   Provision for Income Taxes                                 0
                                                 --------------
   Total Expenses                                    35,903,410

Reorganization Expenses                                 332,989
                                                 --------------
Net Profit (Loss)                                   ($2,068,265)
                                                 ==============


                       Farmland Dairies, LLC
                  Cash Receipts and Disbursements
               From July 25, 2004 to August 21, 2004

Cash - Beginning of Month                            $6,667,837

Receipts From Operations
   Cash Sales                                                 0

Collection of Accounts Receivable
   Prepetition                                          953,259
   Postpetition                                      36,761,638
                                                 --------------
   Total Operating Receipts                          37,714,896

Non - Operating Receipts
   Proceeds from GE Capital                            (400,000)
   Voided Checks (Prepetition)                                -
   Adjustments                                          (30,869)
   Deposits -- Other                                  4,052,527
   Transfers                                          3,350,000
                                                 --------------
   Total Non-Operating Receipts                       6,971,657
                                                 --------------
   Total Receipts                                    44,686,553
                                                 --------------
Total Cash Available                                 51,354,390

Operating Disbursements
   Chemicals                                            319,189
   Commissions                                          109,763
   Consulting/Legal                                      57,557
   Co-packing                                           566,333
   Employee & Employee-related expenses                 858,256
   Equipment Leases                                     385,141
   Freight & Postage                                    249,038
   Fuel                                                  99,086
   Transportation                                       448,322
   Ingredients                                        1,496,751
   Insurance                                          1,331,288
   Lab Fees                                              44,103
   Licenses & Taxes                                      74,073
   Marketing                                             18,046
   Other                                                583,540
   Packaging                                          2,330,071
   Pallets/Cases/Bossies                                258,209
   Milk Producers                                    16,448,554
   Marketing Administrator                              221,615
   Purchased Products                                   714,602
   R & M, Parts, Supplies                               844,506
   Raw Milk                                           1,139,796
   Rebates                                               48,425
   Rent                                                  65,919
   Security                                             104,194
   Temporary Labor                                       74,225
   Travel & Entertainment                                25,908
   Utilities                                          1,000,130
   Securitization Payments                            2,283,236
   Payroll                                            3,586,163
   Payroll Taxes                                        390,030
   Voided Checks (Postpetition)                        (193,670)
                                                 --------------
   Total expenses                                    35,982,399

Reorganization Expenses
   Professional Fees                                  1,190,965
   U.S. Trustee Fees                                     20,250
   DIP Interest & Fees                                  161,977
                                                 --------------
   Total Reorganization Expenses                      1,373,192
                                                 --------------
Total Disbursements                                  37,355,591
                                                 --------------
Net Cash Flow                                         7,330,962
                                                 --------------
Cash - End of Month                                 $13,998,799
                                                 ==============


PARMALAT: Milk Products Operating Report Ended August 21, 2004
--------------------------------------------------------------

                   Milk Products of Alabama, LLC
                           Balance Sheet
                       As of August 21, 2004

Assets

Cash & Cash Equivalents                              $2,300,010
Accounts Receivable-Net                               3,290,918
Inventory                                             1,167,551
Prepaid Expenses                                        272,968
Other Current Assets                                      4,521
                                                 --------------
Total Current Assets                                  7,035,968

Fixed Assets                                         10,926,223
Accumulated Depreciation                              6,692,669
                                                 --------------
Net Fixed Assets                                      4,233,554

Other Assets                                            885,023
Intercompany Receivables                                      0
                                                 --------------
Total Assets                                        $12,154,545
                                                 ==============

Liabilities Subject to Compromise
   Accrued Expenses                                     $45,227
   Intercompany payables                              8,338,493
                                                 --------------
Total Liabilities Subject to Compromise               8,383,720

Liabilities
   Accounts Payable                                     187,037
   Accrued Expenses                                     193,439
                                                 --------------
Total Current Liabilities                               380,476

Long Term Notes Payable -- Intercompany                       -
Other                                                   293,096
                                                 --------------
Total Long Term Liabilities                             293,096

Intercompany Payables                                 3,314,109
                                                 --------------
Total Liabilities                                    12,371,401

Equity
Retained Earnings                                             -
YTD Net Income/(Loss)                                  (235,270)
                                                 --------------
Total Equity                                           (216,856)
                                                 --------------
Total Liabilities & Owners' Equity                  $12,154,545
                                                 ==============


                   Milk Products of Alabama, LLC
                         Income Statement
               From July 25, 2004 to August 21, 2004

Revenues
   Gross sales                                       $4,362,610
   Less: Returns & discounts                              2,353
                                                 --------------
   Net sales                                          4,360,257

Expenses
   Raw Materials & Ingredients                        3,038,845
   Packaging                                            366,403
   Direct Labor                                          93,872
   Power                                                 80,518
   Freight                                              160,899
   Industrial Depreciation                               30,093
   Production Overhead                                  163,227
   Warehouse (Cooler)                                    10,187
   Marketing Costs                                            0
   Sales Admin Expenses                                  21,083
   Financial Costs                                       21,880
   Other (Income) Expense                                  (422)
   Extraordinary                                       (236,612)
   Corporate Allocation                                (275,000)
   Income Taxes                                               0
                                                 --------------
   Total Expenses                                     3,536,460

Reorganization Expenses
   Professional Fees                                          -
   U.S. Trustee Fees                                  1,770,246
   Other                                                      -
                                                 --------------
   Total Reorganization Expenses                              -
                                                 --------------
Net Profit (Loss)                                     ($946,449)
                                                 ==============


                   Milk Products of Alabama, LLC
                  Cash Receipts and Disbursements
               From July 25, 2004 to August 21, 2004

Cash - Beginning of Month                                    $0

Receipts From Operations
   Cash Sales                                                 -

Collection of Accounts Receivable
   Prepetition                                                0
   Postpetition                                       5,146,412
                                                 --------------
   Total Operating Receipts                           5,146,412

Non - Operating Receipts
   Transfers                                         (3,350,000)
   Other                                                  2,586
                                                 --------------
   Total Non-Operating Receipts                      (3,347,414)
                                                 --------------
   Total Receipts                                     1,798,998  
                                                 --------------
Total Cash Available                                  2,301,638

Operating Disbursements
   Bank Charges                                               -
   Freight                                                    -
   Ingredients                                                -
   Licenses & Taxes                                           -
   Packaging                                                  -
   Raw Milk                                                   -
   R & M, Parts, Supplies                                     -
   Other                                                      -
   Warehouse (Cooler)                                         -
   Marketing Costs                                            -
   Sales Admin Expenses                                       -
   General Expenses                                           -
   Financial Costs                                            -
   Goodwill/trademarks                                        -
   Extraordinary                                              -
   Corporate Allocation                                       -
   Income Taxes                                               -
                                                 --------------
   Total expenses                                         1,628

Reorganization Expenses
   Professional Fees                                          -
   U.S. Trustee Fees                                          -
   Other                                                      -
                                                 --------------
   Total Reorganization Expenses                              -
                                                 --------------
Total Disbursements                                       1,628
                                                 --------------
Net Cash Flow                                         1,797,370  
                                                 --------------
Cash - End of Month                                  $2,300,010
                                                 ==============


PARMALAT USA: Releases Operating Report Ended August 21, 2004
-------------------------------------------------------------

                     Parmalat USA Corporation
                           Balance Sheet
                       As of August 21, 2004

Assets

Cash & Cash Equivalents                                      $0
Accounts Receivable-Net                                       0
Notes Receivable -Current                                     0
Inventory                                                     0
Prepaid Expenses                                              0
Other Current Assets                                          0
                                                 --------------
Total Current Assets                                          0

Fixed Assets                                                  0
Accumulated Depreciation                                      0
                                                 --------------
Net Fixed Assets                                              0

Other Assets                                        326,267,456
Intercompany Receivables                             24,965,787
                                                 --------------
Total Assets                                       $351,233,243
                                                 ==============

Liabilities Subject to Compromise
   Long Term Debt & Interest                        $19,836,909
   Intercompany payables                            212,783,632
                                                 --------------
Total Liabilities Subject to Compromise             232,620,541

Liabilities
   Accounts Payable                                           0
   Notes & Loans Payable                                      0
   Accrued Expenses                                     648,977
   Intercompany Payables                                      0
                                                 --------------
Total Liabilities                                   233,269,518

Equity
Common Stock                                          1,388,356
Paid In Capital                                     227,962,103
Retained Earnings                                  (110,643,290)
YTD Net Income/(Loss)                                  (743,444)
                                                 --------------
Total Equity                                        117,963,725
                                                 --------------
Total Liabilities & Owners' Equity                 $351,233,243
                                                 ==============


                     Parmalat USA Corporation
                         Income Statement
               From July 25, 2004 to August 21, 2004

Revenues
   Gross sales                                               $0
   Less: Returns & discounts                                  0
                                                 --------------
   Net sales                                                  0

Expenses
   Raw Materials & Ingredients                                0
   Packaging                                                  0
   Direct Labor                                               0
   Power                                                      0
   Freight                                                    0
   Distribution                                               0
   Industrial Depreciation                                    0
   Production Overhead                                        0
   Warehouse (Cooler)                                         0
   Marketing Costs                                            0
   Sales Admin Expenses                                       0
   General Expenses                                           0
   Financial Costs                                       79,603
   Goodwill/trademarks                                   18,226
   Extraordinary                                              -
   Corporate Allocation                                       -
   Depreciation                                               -
   Amortization                                               -
   Income Taxes                                               -
                                                 --------------
   Total Expenses                                        97,829

Reorganization Expenses
   Professional Fees                                          -
   U.S. Trustee Fees                                        250
   Other                                                      -
                                                 --------------
   Total Reorganization Expenses                            250
                                                 --------------
Net Profit (Loss)                                      ($98,079)
                                                 ==============

Parmalat USA Corporation received no cash nor made disbursements  
from July 25, 2004, to August 21, 2004.


PG&E NATIONAL: ET Gas' Revised May 2004 Monthly Operating Report
----------------------------------------------------------------
NEGT Energy Trading-Gas Corporation revised its Monthly Operating  
Report for May 2004.

               NEGT Energy Trading-Gas Corporation
                     Unaudited Balance Sheet
                        As of May 31, 2004

                              ASSETS

Current Assets
   Cash                                             $10,465,079
   Accounts Receivable-Trade                         37,104,637
   Valuation from Unrealized Commodity Contracts   Undetermined
   Receivables from Officers/Employees/Affiliates  Undetermined
   Notes Receivable Stocks                                    0
   Inventory                                                  0
   Other Current Assets
      Deposits                                       70,075,017
      Prepayments                                    10,036,500
      Other Current Assets                            3,113,514
                                                 --------------
Total Current Assets                               Undetermined

Fixed Assets
   Land                                                       0
   Building                                                   0
   Equipment, Furniture & Fixtures                   21,635,393
   Less Accumulated Depreciation                    (20,434,680)
                                                 --------------
Total Fixed Assets                                   $1,000,713

Other Assets
   Accrued taxes                                   Undetermined
                                                 --------------
Total Other Assets                                 Undetermined
                                                 --------------
TOTAL ASSETS                                       Undetermined
                                                 ==============

                      LIABILITIES AND EQUITY

Postpetition Liabilities
   Accounts Payable                                          $0
   Accrued Quarterly Fees                                   250
   Notes Payable                                              0
   Rent and Leases Payable                                    0
   Taxes Payable                                              0
   Accrued Interest                                           0
   Other:
      Accrued Legal fees                                      0
      Accrued Payroll and Benefits                       17,413
                                                 --------------
Total Postpetition Liabilities                           17,663

Prepetition Liabilities
   Priority Claims                                 Undetermined
   Secured Debts                                   Undetermined
   Unsecured Debts                                 Undetermined
                                                 --------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
   Capital Stock/Owner's Investments                          -
   Paid-In Capital Surplus                         Undetermined
   Retained Earnings (deficit)
      Prepetition                                  Undetermined
      Postpetition                                 Undetermined
                                                 --------------
Total Owner's Equity                               Undetermined
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                 ==============


               NEGT Energy Trading-Gas Corporation
                    Unaudited Income Statement
             For the Period May 1 to May 31, 2004

Total Sales/Income                                     $376,683

COST OF SALES:
   Purchases of Inventory                                     0
   Purchased Services                                         0
   Other:
      Purchase of Commodities                         2,453,665
                                                 --------------
Total Cost of Sales                                   2,453,665
                                                 --------------
Gross Profit                                         (1,716,982)

OPERATING EXPENSES:
   Bad Debt Expense                                           0
   Bank Charges                                           1,528
   Communications                                             0
   Computer Supplies                                          0
   Credit & Commitment Fees                                   0
   Datafeeds                                              3,420
   Fixed Assets Depreciation                            204,277
   Indirect Allocations                                  70,149
   Insurance                                                  0
   Legal Fees                                           375,000
   Recruiting & Relocation                                    0  
   Realized(Gain)/Loss on Foreign Exchange                 (659)
   Rent                                                     464  
   Unrealized(Gain)/Loss on Foreign Exchange                  0
   Office Supplies                                            0
   Other                                                      0
   Payroll and benefits                                 (78,080)
   Professional Fees                                      7,015
   Software Costs                                             0
   Subscriptions                                              0  
   Taxes Other than Income                                  300
   Training                                                   0
                                                 --------------
Total Operating Expenses                                583,414  
                                                 --------------
Profit/Loss from Operation                           (2,300,396)

Other Income (Expenses):
   Interest Income                                      175,874
   Interest Expense                                           0
   Equity in Subsidiaries                                     0
   Other Income(Expenses)                                     0
                                                 --------------
Total Other Income (Expenses)                           175,874
                                                 --------------
Income Before Taxes                                  (2,124,523)

Income Taxes Expense (Benefit)                     Undetermined
                                                 --------------
NET INCOME                                         Undetermined
                                                 ==============


               NEGT Energy Trading-Gas Corporation
                    Cash Reconciliation Report
             For the Period May 1 to May 31, 2004

Cash balance from prior balance sheet               $10,464,421
Pre-tax Net income for month                         (2,124,523)

Income/Expenses Not Requiring Cash:
   Depreciation                                         204,277
   Unrealized (Gain) Loss on Foreign Exchange                 0
   Relief of Allowance for Doubtful Accts                     0
                                                 --------------
Total Expenses Not Requiring Cash                       204,277
                                                 --------------
Total Cash from Operations                            8,544,175

Other sources/uses of cash:
   Decrease (Incr):
      Accounts Receivable Non-Affiliate              27,858,506
      Accounts Receivable Affiliate                      12,032
      Inventory                                               0
      Equipment                                               0
      Furniture & Fixtures                                    0
      Prepaids                                        2,552,388
      Deposits                                        4,500,000
      Other Current Assets                                    0
   Increase (Decr):
      Accounts Payable Non-Affiliate                (20,781,481)
      Accounts Payable Affiliate                     (1,605,029)
      Accrued Liabilities                              (120,654)
      Current Deferred Liabilities                  (10,494,859)
      Accrued Interest                                        0
      Accrued P/R Taxes                                       0
      Accrued Salaries                                        0
      Accrued Sales Tax                                       0
      Note Payable Taxes                                      0
      Tax Liability                                           0
                                                 --------------
Total Other Sources & Uses of Cash                    1,920,904
                                                 --------------
ENDING CASH BALANCE                                 $10,465,079
                                                 ==============


PG&E NATIONAL: ET Gas' July 2004 Monthly Operating Report
---------------------------------------------------------

               NEGT Energy Trading-Gas Corporation
                     Unaudited Balance Sheet
                       As of July 31, 2004

                              ASSETS

Current Assets
   Cash                                             $10,485,830
   Accounts Receivable-Trade                         32,762,872
   Valuation from Unrealized Commodity Contracts   Undetermined
   Receivables from Officers/Employees/Affiliates  Undetermined
   Notes Receivable Stocks                                    0
   Inventory                                                  0
   Other Current Assets
      Deposits                                       70,075,017
      Prepayments                                    10,036,500
      Other Current Assets                            3,113,514
                                                 --------------
Total Current Assets                               Undetermined

Fixed Assets
   Land                                                       0
   Building                                                   0
   Equipment, Furniture & Fixtures                   21,635,393
   Less Accumulated Depreciation                    (20,975,736)
                                                 --------------
Total Fixed Assets                                     $659,656

Other Assets
   Accrued taxes                                   Undetermined
                                                 --------------
Total Other Assets                                 Undetermined
                                                 --------------
TOTAL ASSETS                                       Undetermined
                                                 ==============

                      LIABILITIES AND EQUITY

Postpetition Liabilities
   Accounts Payable                                          $0
   Accrued Quarterly Fees                                   250
   Notes Payable                                              0
   Rent and Leases Payable                                    0
   Taxes Payable                                              0
   Accrued Interest                                           0
   Other:
      Accrued Legal fees                                      0
      Accrued Payroll and Benefits                       62,589
                                                 --------------
Total Postpetition Liabilities                          $17,663

Prepetition Liabilities
   Priority Claims                                 Undetermined
   Secured Debts                                   Undetermined
   Unsecured Debts                                 Undetermined
                                                 --------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
   Capital Stock/Owner's Investments                          -
   Paid-In Capital Surplus                         Undetermined
   Retained Earnings (deficit)
      Prepetition                                  Undetermined
      Postpetition                                 Undetermined
                                                 --------------
Total Owner's Equity                               Undetermined
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                 ==============


               NEGT Energy Trading-Gas Corporation
                    Unaudited Income Statement
             For the Period July 1 to July 31, 2004

Total Sales/Income                                      ($1,550)

COST OF SALES:
   Purchases of Inventory                                     0
   Purchased Services                                         0
   Other: (Identify)                                          0
      Purchase of Commodities                           (10,000)
                                                 --------------
Total Cost of Sales                                  (2,453,665)
                                                 --------------
Gross Profit                                             (8,450)

OPERATING EXPENSES:
   Bad Debt Expense                                           0
   Bank Charges                                             467
   Communications                                            52
   Computer Supplies                                          0
   Credit & Commitment Fees                                   0
   Datafeeds                                                  0
   Fixed Assets Depreciation                            136,780
   Indirect Allocations                                  30,249
   Insurance                                                  0
   Legal Fees                                           375,000
   Recruiting & Relocation                                    0  
   Realized(Gain)/Loss on Foreign Exchange               (1,215)
   Rent                                                   3,160  
   Unrealized(Gain)/Loss on Foreign Exchange                  0
   Office Supplies                                            0
   Other                                                  5,000  
   Payroll and benefits                                  42,720
   Professional Fees                                      5,324
   Software Costs                                         2,475
   Subscriptions                                              0  
   Taxes Other than Income                                    0
   Training                                                   0
                                                 --------------
Total Operating Expenses                                600,013  
                                                 --------------
Profit/Loss from Operation                             (608,463)

Other Income (Expenses):
   Interest Income                                      285,416
   Interest Expense                                           0
   Equity in Subsidiaries                                     0
   Other Income(Expenses)                                     0
                                                 --------------
Total Other Income (Expenses)                           285,416
                                                 --------------
Income Before Taxes                                   ($323,046)

Income Taxes Expense (Benefit)                     Undetermined
                                                 --------------
NET INCOME                                         Undetermined
                                                 ==============


               NEGT Energy Trading-Gas Corporation
                    Cash Reconciliation Report
             For the Period July 1 to July 31, 2004

Cash balance from prior balance sheet               $10,466,514
Pre-tax Net income for month                           (323,046)

Income/Expenses Not Requiring Cash:
   Depreciation                                         136,780
   Unrealized (Gain) Loss on Foreign Exchange                 0
   Relief of Allowance for Doubtful Accts                     0
                                                 --------------
Total Expenses Not Requiring Cash                       136,780
                                                 --------------
Total Cash from Operations                           10,280,248

Other sources/uses of cash:
   Decrease (Incr):
      Accounts Receivable Non-Affiliate                 447,329
      Accounts Receivable Affiliate                      14,284
      Inventory                                               0
      Equipment                                               0
      Furniture & Fixtures                                    0
      Prepaids                                                0
      Deposits                                                0
      Other Current Assets                                    0
   Increase (Decr):
      Accounts Payable Non-Affiliate                        (25)
      Accounts Payable Affiliate                       (256,005)
      Accrued Liabilities                                     0
      Current Deferred Liabilities                            0
      Accrued Interest                                        0
      Accrued P/R Taxes                                       0
      Accrued Salaries                                        0
      Accrued Sales Tax                                       0
      Note Payable Taxes                                      0
      Tax Liability                                           0
                                                 --------------
Total Other Sources & Uses of Cash                      205,583
                                                 --------------
ENDING CASH BALANCE                                 $10,485,830
                                                 ==============


PG&E NATIONAL: ET Investments' July 2004 Monthly Operating Report
-----------------------------------------------------------------

                 NEGT ET Investments Corporation
                     Unaudited Balance Sheet
                       As of July 31, 2004

                              ASSETS

Current Assets
   Cash                                                      $0
   Accounts Receivable                                        0
   Receivables from Officers/Employees/Affiliates  Undetermined
   Notes Receivable Stocks                                    0
   Inventory                                                  0
   Other Current Assets                                       -
                                                 --------------
Total Current Assets                               Undetermined

Fixed Assets
   Land                                                       0
   Building                                                   0
   Equipment, Furniture & Fixtures                            0
   Less Accumulated Depreciation                              0
                                                 --------------
Total Fixed Assets                                           $0

Other Assets
   Investment in Subsidiaries                      Undetermined
                                                 --------------
Total Other Assets                                 Undetermined
                                                 --------------
TOTAL ASSETS                                       Undetermined
                                                 ==============

                      LIABILITIES AND EQUITY

Postpetition Liabilities
   Accounts Payable                                          $0
   Accrued Quarterly Fees                                   250
   Notes Payable                                              0
   Rent and Leases Payable                                    0
   Taxes Payable                                              0
   Accrued Interest                                           0
   Other                                                      0
                                                 --------------
Total Postpetition Liabilities                             $250

Prepetition Liabilities
   Priority Claims                                 Undetermined
   Secured Debts                                   Undetermined
   Unsecured Debts                                 Undetermined
                                                 --------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
   Capital Stock, Owner's Investments              Undetermined
   Paid-In Capital Surplus                         Undetermined
   Retained Earnings (deficit)
      Prepetition                                  Undetermined
      Postpetition                                 Undetermined
                                                 --------------
Total Owner's Equity                               Undetermined
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                 ==============


                 NEGT ET Investments Corporation
                    Unaudited Income Statement
             For the Period July 1 to July 31, 2004

Total Sales/Income                                           $0

COST OF SALES:
   Purchases of Inventory                                     0
   Purchased Services                                         0
   Other (Identify)                                           0
                                                 --------------
Total Cost of Sales                                           0
                                                 --------------
Gross Profit                                                  0

OPERATING EXPENSES:
   Bad Debt Expense                                           0
   Officer Salaries                                           -
   Other Employee Salaries                                    -
   Taxes (Payroll)                                            -
   Employee Benefits                                          -
   Advertising                                                -
   Auto Expenses                                              -
   Entertainment                                              -
   Insurance (Real Estate)                                    -
   Insurance (Other)                                          -
   Leases (Other than Rent)                                   -
   Outside Services & Contractors                             -
   Professional Fees (Atty. Acct.)                            -
   Rent                                                       -
   Repairs & Maintenance                                      -
   Supplies                                                   -
   Taxes (Real Property)                                      -
   Taxes (Other)                                              -
   Telephone                                                  -
   Travel                                                     -
   Utilities                                                  -
   Other                                                    250
                                                 --------------
Total Operating Expenses                                    250
                                                 --------------
Profit/Loss from Operation                                 (250)

Other Income (Expenses):
   Interest Expense                                      (1,574)
   Equity in ET Power                                (3,250,512)
                                                 --------------
Total Other Income (Expenses)                        (3,252,086)  
                                                 --------------
Income Before Taxes                                 ($3,252,336)

Income Taxes Expense (Benefit)                     Undetermined
                                                 --------------
NET INCOME                                         Undetermined
                                                 ==============


                 NEGT ET Investments Corporation
                    Cash Reconciliation Report
             For the Period July 1 to July 31, 2004

Cash balance from prior balance sheet                        $0
Pre-tax Net income for month                         (3,252,336)

Expense Not Requiring Cash:
   Depreciation                                               0
   Other:
      Investment in Subsidiaries                      3,250,512
      Relief of Allowance of Doubtful Accounts                0
                                                 --------------
Total Expenses Not Requiring Cash                     3,250,512
                                                 --------------
Total Cash from Operations                               (1,824)

Other sources/uses of cash:
   Decrease (Incr):
      Accounts Receivable                                     0
      Inventory                                               0
      Equipment                                               0
      Furniture & Fixtures                                    0
   Increase (Decr):
      Accounts Payable                                        0
      Accounts Payable - Affiliate                        1,824
      Accounts Payable - Interest Payable                     0
      Accrued Interest                                        0
      Accrued P/R Taxes                                       0
      Accrued Professional Fees                               0
      Accrued Rent                                            0
      Accrued Salaries                                        0
      Accrued Sales Tax                                       0
      Note Payable Taxes                                      0
      Taxes Payable                                           0
     (Less) Unrecorded Bank Service Charges                   0
                                                 --------------
Total Other Sources & Uses of Cash                        1,824
                                                 --------------
ENDING CASH BALANCE                                         ($0)
                                                 ==============


PG&E NATIONAL: ET Holdings' July 2004 Monthly Operating Report
--------------------------------------------------------------

             NEGT Energy Trading Holdings Corporation
                     Unaudited Balance Sheet
                       As of July 31, 2004

                              ASSETS

Current Assets
   Cash                                            $291,774,454
   Accounts Receivable                                  293,091
   Receivables from Officers/Employees/Affiliates  Undetermined
   Notes Receivable Stocks                                    0
   Inventory                                                  0
   Other Current Assets
      Accrued taxes                                Undetermined
                                                 --------------
Total Current Assets                               Undetermined

Fixed Assets
   Land                                                       0
   Building                                                   0
   Equipment, Furniture & Fixtures                            0
   Less Accumulated Depreciation                              0
   Other Fixed Assets                                         0
                                                 --------------
Total Fixed Assets                                           $0

Other Assets
   Investments in Subsidiaries                     Undetermined
                                                 --------------
Total Other Assets                                 Undetermined
                                                 --------------
TOTAL ASSETS                                       Undetermined
                                                 ==============

                      LIABILITIES AND EQUITY

Postpetition Liabilities
   Accounts Payable                                    $588,625
   Notes Payable                                              0
   Rent and Leases Payable                                    0
   Taxes Payable                                              0
   Accrued Interest                                           0
   Other:
      Accrued Quarterly Fees                              5,000
      Accrued Legal Fees                              1,976,093
      Accrued Payroll and Benefits                      184,197
                                                 --------------
Total Postpetition Liabilities                       $2,753,915

Prepetition Liabilities
   Priority Claims                                 Undetermined
   Secured Debts                                   Undetermined
   Unsecured Debts                                 Undetermined
                                                 --------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
   Capital Stock/Owner's Investments               Undetermined
   Paid-In Capital Surplus                         Undetermined
   Retained Earnings
      Prepetition                                  Undetermined
      Postpetition                                 Undetermined
                                                 --------------
Total Owner's Equity                               Undetermined
                                                 --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                 ==============


             NEGT Energy Trading Holdings Corporation
                    Unaudited Income Statement
             For the Period July 1 to July 31, 2004

Total Sales/Income                                           $0

COST OF SALES:
   Purchases of Inventory                                     0
   Purchased Services                                         0
   Other                                                      0
                                                 --------------
Total Cost of Sales                                           0
                                                 --------------
Gross Profit                                                  0

OPERATING EXPENSES:
   Bad Debt Expense                                           0
   Communications                                           (21)
   Computer Supplies                                          0
   Credit/Commitment Fees                                54,625
   Datafeeds                                                  0
   Indirect Allocations                                (302,154)
   Insurance                                                  0
   Legal Fees                                           375,000
   Misc. Tax Payments                                         0
   Office Supplies                                            0
   Other                                                      0
   Other Business Expenses                                    0
   Payroll and benefits                                (109,340)
   Postage & Delivery                                         0
   Professional Fees                                      6,507
   Recruiting & Relocation                                    0
   Rent                                                   3,863
   Software Costs                                         4,150
   Subscriptions                                              0
   Training                                                   0
   Travel                                                     0
   US Trustees                                            5,000
                                                 --------------
Total Operating Expenses                                 37,681
                                                 --------------
Profit/Loss from Operation                              (37,681)

Other Income (Expenses):
   Interest Income                                      294,168
   Interest Expense                                    (308,688)
   Equity in Subsidiary:
      Investment in ET Power                            (66,337)
      Investment in ET Investment                    (1,966,036)
      Investment in ET Gas Corp.                       (195,281)
      Investment in NEGT International                   19,967
                                                 --------------
Total Other Income (Expenses)                        (2,222,206)
                                                 --------------
Income Before Taxes                                 ($2,259,887)

Income Taxes Expense (Benefit)                     Undetermined
                                                 --------------
NET INCOME                                         Undetermined
                                                 ==============


             NEGT Energy Trading Holdings Corporation
                    Cash Reconciliation Report
             For the Period July 1 to July 31, 2004

Cash balance from prior balance sheet              $289,494,834
Pre-tax Net income for month                         (2,259,887)

Expense Not Requiring Cash:
   Depreciation                                               0
   Investment in ET Power                                66,337
   Investment in ET Investment                        1,966,036
   Investment in ET Gas Corp.                           195,281
   Investment in NEGT International                     (19,967)
   Relief of Allowance of Doubtful Accounts                   0
                                                 --------------
Total Expenses Not Requiring Cash                     2,207,687
                                                 --------------
Total Cash from Operations                          289,442,634

Other sources/uses of cash:
   Decrease (Incr):
      Accounts Receivable Non-Affiliate                 (55,913)
      Accounts Receivable Affiliate                   2,761,046
      Inventory                                               0
      Equipment                                               0
      Furniture & Fixtures                                    0
      Prepaids                                            4,150
   Increase (Decr):
      Accounts Payable - Non-Affiliate                 (210,588)
      Accounts Payable - Affiliate                     (168,142)
      Accrued Liabilities                              (183,432)
      Accrued Interest                                        0
      Accrued P/R Taxes                                       0
      Accrued Professional Fees                         184,583
      Accrued Salaries                                        0
      Accrued Sales Tax                                       0
      Note Payable Taxes                                      0
      Tax Liability                                           0
      (Less) Unrecorded Bank Service Charges                  0
                                                 --------------
Total Other Sources & Uses of Cash                    2,331,705
                                                 --------------
ENDING CASH BALANCE                                $291,774,339
                                                 ==============


RELIANCE GROUP: RIC Liquidator's 2nd Quarter Status Report
----------------------------------------------------------
M. Diane Koken, Insurance Commissioner of the Commonwealth of
Pennsylvania, issues a Status Report on the Liquidation of
Reliance Insurance Company for the Second Quarter 2004.

In her capacity as RIC Liquidator, Ms. Koken reports that, at the
end of the first quarter 2004, the Company held $5,800,000,000 in
assets.  The most significant balance was $3,600,000,000,
relating to reinsurance receivables and future reinsurance
recoverables.  This figure was reduced from a $3,700,000,000
estimate in the First Quarter Report.  Total liabilities are
estimated at $8,800,000,000, with the most significant balance,
$5,400,000,000 attributable to loss and loss adjustment expenses
on direct business.  The Statement reflects $1,300,000,000 in
losses and loss adjustment expenses paid by Guaranty
Associations.  This figure includes data reported to the estate
through an automated interface on a time lag basis.  Since not
all states were reporting through this system at the end of the
quarter, actual payments by GAs are higher.  This value includes
$1,300,000,000 in losses and loss adjustment expenses on assumed
reinsurance business, which are Class C general creditor claims.
The net deficit produced is $2,991,800,000.

Short and intermediate duration marketable investments increased
from $464,300,000 to $545,100,000 at the end of the period.
Reinsurance collections, the primary source of funds, totaled
$115,600,000.  The estate paid $28,300,000 in early access
payments to the GAs.  Loss adjustment expenses were $1,700,000.
Operating expenses were $57,200,000, which includes GA reimbursed
expenses of $21,600,000.

At March 31, 2004, RIC held Symbol Technologies common stock
worth $136,400,000.  On July 30, 2004, the market value was
$13.09 per share.  RIC will continue to sell shares as
appropriate, depending on market conditions.

RIC estimates current and future premium receivables at
$146,400,000.  This includes receivables arising from large
deductible policies billed in 2003, whose ownership is disputed.

At March 31, 2004, reinsurance receivables and recoverables total
$3,600,000,000, down $100,000,000.  RIC holds about
$1,200,000,000 in collateral as security.  Total reinsurance
collections in the first quarter of 2004 amounted to
$115,600,000, with total collections since the date of
liquidation of $701,800,000.  The inventory of billed reinsurance
receivables is $824,400,000 as of March 31, 2004.  Of this
amount, approximately $266,000,000 relates to pre-liquidation
balances.  This balance relates to amounts in both formal and
informal dispute, amounts available to reinsurers as legitimate
offsets and balances due from insolvent and financially
distressed companies.

Data feeds from the Guaranty Associations providing paid and
outstanding claim information were loaded into RIC's systems in
April 2003.  The GA data plus the Notices of Determination
generated about $757,000,000 of post liquidation billings, of
which $558,400,000 was unpaid at March 31, 2004.  The amount
collected will ultimately be much lower due to disputes, offsets
and insolvencies.

RIC is aggressively attempting to collect reinsurance billings
and is in constant contact with its major reinsurers.  Formal
dispute resolution actions continue against several of the
reinsurers with substantial overdue balances, including John
Hancock Life Insurance Company and various Underwriters at
Lloyd's.  RIC expects these disputes to be resolved within the
next six to twelve months.  A federal district court ruled in
favor of RIC on a $6,600,000 portion of a recent arbitration
award.  However, the reinsurer has appealed the ruling to the
Third Circuit Court of Appeals.  During 2004, RIC completed 13
on-site reinsurance audits at various GAs.

Ms. Koken advises that reinsurer financial strength is a problem
and will continue to be a major concern for the duration of the
RIC liquidation proceedings.  RIC is monitoring the financial
condition of its major reinsurers and will attempt to settle its
overall exposure with distressed companies through commutation.
However, significant write-offs for uncollectible reinsurance are
expected, Ms. Koken says.

At June 30, 2004, RIC had a total of 395 employees in both the
Philadelphia and New York City offices.  Since January 2004,
staff has been reduced in most areas with a net decrease of 37
employees.

CTG, a professional Information Technology consulting company,
and RCG Information Technology, a professional IT consulting
company owned by RIC, have provided all RIC's IT services.  As of
July 30, 2004, the IT services contract with CTG was terminated
and all CTG employees and consultants working for RIC became
employees and consultants of RCG.

The Liquidator has devoted considerable resources to general
asset recovery, through numerous plaintiff actions to recover
assets owed to the estate.  These include litigation and
arbitration for:

    (1) collections from agencies, TPAs, brokers or program
        managers -- approximately $27,000,000 sought;

    (2) claims in bankruptcy against financially distressed
        insureds -- approximately $120,000,000 sought;

    (3) subrogation matters -- approximately $30,000,000 sought;

    (4) premium and large deductible collections -- approximately
        $27,000,000 sought;

    (5) reinsurance recoveries -- approximately $175,000,000
        sought; and

    (6) other litigation -- approximately $9,000,000 sought.

During the first six months of 2004, the Liquidator recovered
more than $46,200,000 through legal actions.

Through June 30, 2004, RIC received 157,153 proofs of claim, of
which 2,955 were filed after the deadline.  The number of POCs
declined slightly from the first quarter because a number of
duplicate POCs were identified and inactivated.  RIC mailed
158,290 status letters and issued 37,264 Notices of
Determination.  Some POCs have received more than one status
letter as the evaluation of their claim progressed.  Through
June 30, 2004, the Liquidator has allowed $209,000,000 for all
NODs issued.  The Liquidator has received 289 objections to the
NODs.  Of those objections, 22 have been resolved and 267 are in
the objection resolution process.  Referees have been assigned to
175 objections.

The Liquidator has established a process to review requests for
the release of collateral held to secure obligations for direct
insureds, reinsurers and premium receivables.  As of June 30,
2004, RIC held collateral of approximately $2,200,000,000 to
secure current and future obligations.  For the six months ended
June 30, 2004, 103 accounts were reviewed, resulting in the
release of $67,700,000 in collateral for 67 accounts, denials
issued for 9 accounts, and other resolutions for 27 accounts.

            Reliance Insurance Company (In Liquidation)
                   Special Purpose Balance Sheet
                         At March 31, 2004

Assets

   Short-term Investments                      $545,100,000
   Symbol Technologies Common Stock             136,400,000
   Non-liquid Investments                        19,900,000
   Investments in Trust - Secured Creditors     303,500,000
   Real Estate Investments                       27,500,000
                                            ---------------
   Invested Assets                            1,032,400,000

   Investments in Affiliates                    129,000,000
                                            ---------------
Total Invested Assets                         1,161,400,000

   Premium Balances                             146,400,000
   Reinsurance Receivable                       824,400,000
   Reinsurance Recoverable                    2,798,700,000
   Early Access to Guaranty Associations        806,900,000
   Other Assets                                  51,200,000
                                            ---------------
Total Assets                                 $5,789,000,000
                                            ===============

Liabilities

   Loss & Loss Adjustment Expenses - GAs      1,266,200,000
   Loss & Loss Adjustment Expenses - Direct   5,388,500,000
   Loss & Loss Adjustment Expenses - Assumed  1,287,500,000
   Funds Held                                   444,500,000
   Other Liabilities                            394,000,000
                                            ---------------
Total Liabilities                             8,780,800,000
                                            ---------------
Net Deficit                                 ($2,991,800,000)
                                            ===============


            Reliance Insurance Company (In Liquidation)
                      Statement of Cash Flow
                 January 1, 2004 to March 31, 2004

Beginning Balance                              $464,300,000

Sources:
   Reinsurance Collections                      115,600,000
   Premium Collections                            7,700,000
   Subrogation Recoveries                         3,300,000
   RGH Settlement                                45,300,000
   Released From Trust                           12,500,000
   Symbol Technologies Stock Sales               11,100,000
   Investment Appreciation                        4,800,000
   Other                                          2,200,000
                                            ---------------
Total Sources                                   203,000,000
                                            ---------------

Uses:

   Early Access to GAs                          (28,300,000)
   Loss & Loss Adjustment Expenses               (1,700,000)
   Operating Expenses                           (57,200,000)
   Net Checks Cashed But Issued                 (35,000,000)
                                            ---------------
Total Uses                                     (122,200,000)
                                            ---------------
Net Increase in Funds                            80,800,000

Ending Balance                                 $545,100,000
                                            ===============

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)


TOUCH AMERICA: Releases June 2004 Monthly Operating Report
----------------------------------------------------------
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:


                                   June 30, 2004
                                  ---------------
       Current Assets             $684,668,315.04
       Total Assets                613,585,052.64
       Postpetition Debts           34,247,317.21
       Pre-petition Debts          252,752,914.51
       Total Liabilities           287,000,231.72
       Net Owner's Equity         $326,584,820.92

A full-text copy of the Debtors' June 2004 Monthly Operating
Reports is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1144835/000110465904027918/a04-10647_1ex99df.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.


WORLD ACCESS: Releases July 2004 Monthly Operating Report
---------------------------------------------------------
World Access, Inc., and its WA Telcom Products Co., Inc., World
Access Telecommunications Group, Inc., FaciliCom International,
L.L.C. and WorldxChange Communications, Inc., subsidiaries
released Monthly Operating Reports this week for July 2004.

The Companies caution that the information in these reports is
unaudited and has not been reviewed by an independent accountant.

The Monthly Operating Reports for the month ending July 31, 2004
show:

                                  Beginning Cash    Ending Cash
     Debtor Entity                    Balance         Balance
     -------------                --------------  --------------
World Access, Inc.                $12,627,416.24  $12,760,932.64

WA Telcom Products Co., Inc.       10,110,394.12   10,119,389.06

World Access Telecommunications
Group, Inc.                         7,740,884.61    7,743,384.61

FaciliCom International, L.L.C.    14,427,677.50   16,477,831.22

World ExChange Communications     $ 3,295,749.70  $ 3,337,926.62


Full-text copies of the Debtors' July 2004 Monthly Operating
Reports are available at no charge at:

World Access Inc.:
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404009273/g91018exv99w1.txt

WA Telcom Products Co., Inc.:
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404009273/g91018exv99w2.txt

World Access Telecommunications Group, Inc.:
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404009273/g91018exv99w3.txt

FaciliCom International, L.L.C.:
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404009273/g91018exv99w4.txt

World ExChange Communications:
   http://www.sec.gov/Archives/edgar/data/1071645/000095014404009273/g91018exv99w5.txt


On April 24, 2001, World Access, Inc., doing business as WAXA
Inc., focuses on providing bundled voice, data and Internet
services to key regions across the globe.  The Company and its
debtor-affiliates filed for chapter 11 protection in the United
States Bankruptcy Court for the Northern District of Illinois,
Eastern Division (Bankr. Case No. 01-14633).

                            *********

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.

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