/raid1/www/Hosts/bankrupt/TCR_Public/041002.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, October 2, 2004, Vol. 8, No. 213
Headlines
ADELPHIA COMMS: Reports $63 Million Net Loss in August 2004
ANC RENTAL: Posts $437,461 Net Income for July 2004
AVALON DIGITAL: Reports $21,838 Net Loss for August 2004
DVI INC: Releases August 2004 Cash Receipts & Disbursements Data
HAWAIIAN AIRLINES: Posts $8.2 Million Net Income in August 2004
HAUSER INC: Submits August 2004 Monthly Operating Report
KAISER ALUMINUM: Posts $28.6 Million Net Income in June 2004
KAISER ALUMINUM: Reports $77.8 Million Net Income for July 2004
MISSISSIPPI CHEMICAL: Files June to August 2004 Monthly Reports
TOUCH AMERICA: Releases July 2004 Monthly Operating Report
SPIEGEL INC: Reports $35.2 Million Net Loss for July 2004
SPIEGEL INC: August 2004 Net Loss Narrows to $8.5 Million
UAL CORP: Posts $56.4 Million Net Loss in August 2004
WINSTAR COMMS: Releases July 2004 Monthly Operating Report
*********
ADELPHIA COMMS: Reports $63 Million Net Loss in August 2004
-----------------------------------------------------------
On September 27, 2004, Adelphia Communications and certain other
debtor-in-possession subsidiaries of the Company filed their
unaudited consolidated Monthly Operating Report for the month of
August 2004 with the United States Bankruptcy Court for the
Southern District of New York.
The Debtors' August 2004 Monthly Operating Report shows:
Total Current Assets $715,485,000
Total Assets 52,610,587,000
Total Current Liabilities 425,660,000
Total Liabilities
Subject to Compromise 46,071,637,000
Total Liabilities 50,016,054,000
Total stockholders' equity $2,057,927,000
Revenue $327,699,000
Operating Loss (30,267,000)
Net Loss Applicable to
Common Stockholders $(62,996,000)
On September 24, 2004, Amendment No. 2 to the Second Amended and
Restated Credit and Guaranty Agreement between Adelphia
Communications and its debtor-affiliates, and its DIP Lenders
became effective. Under the terms of the Amendment:
-- the date by which the Company is required to deliver to the
DIP Lenders its consolidated audited balance sheet and
related consolidated audited statement of income and cash
flows for the fiscal years ended December 31, 2002 and
December 31, 2003 has been extended from September 30, 2004
until no later than December 31, 2004; and
-- the date by which each of the designated subsidiary
borrowing groups under the DIP Credit Agreement is required
to deliver to the DIP Lenders a consolidating schedule
containing balance sheets and related statements of income
and cash flows for such designated subsidiary borrower group
for the fiscal years ended December 31, 2002 and
December 31, 2003 has been extended from September 30, 2004
until no later than February 28, 2005.
Full-text copies of Adelphia's August 2004 Monthly Operating
Reports were delivered to the Securities and Exchange Commission
and are available at no charge at:
http://www.sec.gov/Archives/edgar/data/796486/000104746904029714/a2144029zex-99_1.htm
Adelphia-affiliates Arahova Communications Inc., Frontiervision
Capital Corp., Frontiervision Holdings Capital Corp.,
Frontiervision Holdings Capital II Corp., Frontiervision Holdings
LP, Frontiervision Operating Partners LP, Olympus Capital Corp.,
and Olympus Communications LP, also delivered copies of Adelphia's
consolidated financial statements to the Securities and Exchange
Commission.
Headquartered in Coudersport, Pennsylvania, Adelphia
Communications Corporation (OTC: ADELQ) is the fifth-largest cable
television company in the country. Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks. The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002. Those cases are jointly
administered under case number 02-41729. Willkie Farr & Gallagher
represents the ACOM Debtors.
ANC RENTAL: Posts $437,461 Net Income for July 2004
---------------------------------------------------
ANC Rental Corporation, et al.
Combined Balance Sheet
As of July 31, 2004
ASSETS
Current Assets
Cash -- Investments and Other Cash $1,571,476
Cash -- ANC Primary Disbursement 1,050
---------------
Total Unrestricted Cash 1,572,526
Restricted Cash -- Professional Fee Escrow 0
California DMV Restricted Cash -
Restricted Cash -- Tax Escrow 5,658,732
---------------
Total Restricted Cash 5,658,732
Accounts Receivable Other 556,227
Corporate Accounts 3,639,854
Collision Damage Recovery A/R 2,873,499
Collision Damage Recovery Reserve (2,873,499)
Provision -- Trade A/R (3,640,625)
---------------
Total Receivables, net 555,456
---------------
Total Current Assets 7,786,714
Other Assets
Deposits - Insurance Collateralization 58,215
Deposits - California DMV Deposit 38,067
---------------
Total Other Assets 96,282
---------------
Total Assets $7,882,996
===============
LIABILITIES & CAPITAL
Administrative Liabilities
Accounts Payable $716,712
Admin Claim -- Legal and Professional Fee -
Accrued Interest on 3rd Party Debt 6,500,000
Reserve for Other Admin Claims 825,000
---------------
Estimated Admin and Prof Fee Reserves 8,041,712
Secured Liabilities
Accrued Ad-Valorem Tax Reserve 5,893,951
Priority Liabilities
Accrued Prepetition Personal Property Taxes 2,264,409
Other Priority Creditor Accruals 444,127
General Unsecured Liabilities
Reserves for General Unsecured Claims 458,994,499
---------------
Total Liabilities 475,639,698
Total Capital (467,756,702)
---------------
Total Liabilities & Capital $7,882,996
===============
ANC Rental Corporation, et al.
Statement of Operations
For the month ending July 31, 2004
Total Revenues $752,508
Expenses
Citations (1,392)
Turnback Expense Charges 0
Damage Repair -- Collection 121
Unemployment Taxes -- State 0
Payroll Taxes -- Other (109)
Bank Service Charges 0
Consulting Fees 111,336
Accounting -- Auditing Fees 0
Legal Fees 386,402
Data Processing Services 5,556
Printed Forms/Stationery 0
Rent Expense 0
Utilities (4)
Telephone/Communications 0
Personal Property Taxes (30,729)
Non-Property Taxes (241,939)
Environmental Costs 0
Miscellaneous Other Expense (Operating) (4,393)
Interest Exp -- Other Notes 8,927
---------------
Total Expenses 315,048
---------------
Net Income $437,461
===============
ANC Rental Corporation, et al.
Cash Receipts and Disbursements
For the month ending July 31, 2004
Cash at Beginning of Period $12,576,084
Receipts:
Credit Card and Local Deposits 0
Collections of Accounts Receivable 19,345
Other Receipts 308,424
---------------
Total Receipts 327,769
Disbursements:
US Trustee Fees Paid 18,750
Fleet Operating Expenses 0
Personnel - Net Cash Payroll 0
Personnel - Payroll Taxes Paid 0
Personnel - Benefits Payments 0
Personnel - Payments of Garnishments Withheld 0
Travel Expenses Paid 0
Fuel Rental Fleet Payments 0
Airport - Agency - Concession Fees Paid 0
Insurance Payments All 0
Facility & Other Fixed Operating Expenses Paid 0
Travel Agency Tour Operator Commission Payments 0
Advertising Payments 0
IT Consulting Payments 0
IT Other Cash Payments 0
Sales Taxes and Other Taxes Paid 43,260
Professional Fees Paid - Ordinary Course 0
Professional Fees Paid - Bankruptcy Professional 4,365,664
Other Miscellaneous Operating Expenses Paid 11,567
Capital Expenditures 0
Interest and Financing Fees Paid 0
Vehicle Holding Costs Paid 0
Working Capital Fundings to Subsidiaries 0
Repayment to Lehman Bros
-- surplus cash from Professional 1,233,353
---------------
Total Disbursements 5,672,594
Net Cash Flow (5,344,826)
---------------
Cash at End of Period $7,231,258
===============
Headquartered in Fort Lauderdale, Florida, ANC Rental Corporation,
is the world's third-largest publicly traded car rental company.
The Company filed for chapter 11 protection on November 13, 2001
(Bankr. Del. Case No. 01-11200). On April 15, 2004, Judge Walrath
confirmed the Debtors' 3rd amended Chapter 11 Liquidation Plan, in
accordance with Section 1129(a) and (b) of the Bankruptcy Code.
Upon confirmation, Blank Rome, LLP, and Fried, Frank, Harris,
Shriver & Jacobson, LLP, withdrew as the Debtors' counsel. Gazes &
Associates, LLP, and Stevens & Lee, PC, serve as substitute
counsel to represent the debtors' post-confirmation interests.
When the Company filed for protection from their creditors, they
listed $6,497,541,000 in assets and $5,953,612,000 in liabilities.
(ANC Rental Bankruptcy News, Issue No. 60; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
AVALON DIGITAL: Reports $21,838 Net Loss for August 2004
--------------------------------------------------------
Avalon Digital Marketing Systems, Inc., filed its monthly
operating report for the period August 1, 2004 to August 31, 2004.
Avalon Digital reported a $21,838 net loss in $133,415 of gross
profit for August 2004.
At August 31, 2004, Avalon Digital's balance sheet showed:
Current Assets $108,585
Total Assets 356,539
Postpetition Liabilities 622,500
Prepetition Liabilities 9,410,666
Total Owners' Equity $(9,676,627)
A full-text copy of Avalon Digital Marketing Systems, Inc.'s
August 2004 Monthly Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1095792/000009631304000231/avalondigitalexh991804.txt
On September 5, 2003, Avalon Digital Marketing Systems, Inc.,
filed a voluntary petition for reorganization under Chapter 11 of
the United States Bankruptcy Code in the U.S. Bankruptcy Court in
Salt Lake City, Utah. The case has been assigned to Judge Glen E.
Clark and the case is being administered under Case No. 03-35180.
DVI INC: Releases August 2004 Cash Receipts & Disbursements Data
----------------------------------------------------------------
On September 23, 2004, DVI, DVI FS and DVI BC filed their
respective Monthly Operating Reports with the U.S. Bankruptcy
Court and the U.S. Trustee for the period from August 1, 2004
through August 31, 2004 showing:
Debtor Cash Receipts Cash Disbursements
------ ------------- ------------------
DVI $0 $0
DVI FS $3,991,000 $(3,951,000)
DVI BC $352,000 $(344,000)
Full-text copies of DVI's August 2004 Monthly Operating Report are
available at no charge at:
DVI Inc:
http://www.sec.gov/Archives/edgar/data/801550/000095012304011404/y02790exv99w1.txt
DVI Financial Services:
http://www.sec.gov/Archives/edgar/data/801550/000095012304011404/y02790exv99w2.txt
DVI Business Credit:
http://www.sec.gov/Archives/edgar/data/801550/000095012304011404/y02790exv99w3.txt
DVI, Inc., the parent company of DVI Financial Services, Inc., DVI
Business Credit Corp., and DVI Financial Services, Inc., provides
lease or loan financing to healthcare providers for the
acquisition or lease of sophisticated medical equipment. The
Company, along with its affiliates, filed for chapter 11
protection (Bankr. Del. Lead Case No.: 03-12656) on August 25,
2003 before the Honorable Mary F. Walrath. Bradford J. Sandler,
Esq., of Adelman Lavine Gold and Levin, PC, represents the debtors
in their restructuring efforts.
HAWAIIAN AIRLINES: Posts $8.2 Million Net Income in August 2004
---------------------------------------------------------------
On September 21, 2004, Hawaiian Airlines, the sole operating
subsidiary of Hawaiian Holdings, Inc., filed its unaudited Monthly
Operating Report for the month of August 2004 with the United
States Bankruptcy Court for the District of Hawaii. The carrier
posts an $8,241,000 net income on $78,293,000 of operating
revenues in August 2004.
At August 31, 2004, Hawaiian Airlines' balance sheet showed:
Total Current Assets $280,039,000
Total Assets 407,265,000
Total Current Liabilities 263,412,000
Total Liabilities 447,887,000
Liabilities Subject
to Compromise 133,471,000
Shareholder's Deficit 174,093,000
A full-text copy of Hawaiian Airlines' August 2004 Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1172222/000095013604003072/file002.htm
Headquartered in Honolulu, Hawaii, Hawaiian Airlines, Inc., --
http://hawaiianair.com/-- is a subsidiary of Hawaiian Holdings,
Inc. (Amex and PCX: HA). The Company provides primarily scheduled
transportation of passengers, cargo and mail. Flights operate
within the South Pacific and to points on the west coast as well
as Las Vegas. Since the appointment of a bankruptcy trustee in
May 2003, Hawaiian Holdings has had no involvement in the
management of Hawaiian Airlines and has had limited access to
information concerning the airline. The Company filed for chapter
11 protection on March 21, 2003 (Bankr. D. Hawaii Case No.
03-00817). Joshua Gotbaum serves as the chapter 11 trustee for
Hawaiian Airlines, Inc. Mr. Gotbaum is represented by Tom E.
Roesser, Esq., and Katherine G. Leonard at Carlsmith Ball LLP and
Bruce Bennett, Esq., Sidney P. Levinson, Esq., Joshua D. Morse,
Esq., and John L. Jones, II, Esq., at Hennigan, Bennett & Dorman
LLP.
HAUSER INC: Submits August 2004 Monthly Operating Report
--------------------------------------------------------
Kenneth C. Cleveland, President and Chief Executive Officer for
Hauser, Inc., advises that on September 16, 2004, the Company and
its wholly owned subsidiaries filed the monthly operating report
for the month ended August 31, 2004 with the Office of the United
States Trustee pursuant to Bankruptcy Rule 2015 and the Trustee's
Financial Reporting Requirements for Chapter 11 Cases.
Citing Rule 202 of Regulation S-T and the Company's continuing
hardship exemption, Mr. Cleveland explains that it is impossible
to deliver an electronic copy of that financial report to the
Securities and Exchange Commission so the Company has manually
filed a paper copy of the Amended Reports under cover of Form
SE.
Headquartered in El Segundo, California, Hauser Inc. supplies
herbal extracts and nutritional supplements and provides chemical
engineering services and contract research and development. The
Company and its debtor-affiliates filed for chapter 11 protection
on April 1, 2003, in Los Angeles (Bankr. C.D. Calif. Case No. 03-
18795). Christine M. Pajak, Esq., at Stutman, Treister & Glatt,
serves as legal counsel to the Debtors.
KAISER ALUMINUM: Posts $28.6 Million Net Income in June 2004
------------------------------------------------------------
Kaiser Aluminum Corporation -- All Debtors
Unaudited Balance Sheets
As of June 30, 2004
(In Thousands)
ASSETS
Cash $25,974
Receivables:
Trade 144,153
Other 5,484
---------
Total Receivables 149,637
Inventories 162,645
Prepaid expenses and other current assets 25,797
---------
Total current assets 364,053
Investments in and advances to subsidiaries 347,772
Intercompany receivables/payables, net (84,147)
Property, plant, and equipment - net 223,802
Deferred income taxes -
Other assets 521,252
---------
Total Assets $1,372,732
=========
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities not subject to compromise:
Accounts Payable $78,152
Accrued interest 879
Accrued salaries, wages and related expenses 34,028
Accrued post retirement benefit -- current 8,135
Other accrued liabilities 58,825
Payable to affiliates 54,364
Long term debt - current portion 1,247
---------
Total current liabilities 235,630
Long-term liabilities 76,351
Accrued postretirement benefit obligation -
Long-term debt 2,212
Liabilities subject to compromise 2,823,778
Minority interests 655
Stockholders' equity:
Preference stock -
Common stock 792
Additional capital 539,086
Accumulated deficit - As of filing date (946,925)
Accumulated deficit - Post filing date (1,252,664)
Accumulated other comprehensive income (loss) (106,183)
Note receivable from parent -
---------
Total Liabilities & Stockholders' Equity $1,372,732
=========
Kaiser Aluminum Corporation -- All Debtors
Statements of Operations
For the Month Ending June 30, 2004
(In Thousands)
Net Sales $127,859
Costs and expenses:
Cost of products sold 112,670
Depreciation & amortization 1,829
Selling, administrative, R&D and general 5,695
Other operating charges, net (30,370)
---------
Total costs and expenses 89,824
---------
Operating income (loss) 38,035
Other income (expense):
Interest expenses, net (641)
Reorganization items (2,472)
Other-net (1,262)
---------
Income (loss) before
income taxes and minority interest 33,660
(Provision) benefit for income taxes 11,415
Minority interests -
Equity in income (loss) of subsidiaries (16,479)
---------
Net income (loss) $28,596
=========
Kaiser Aluminum Corporation -- All Debtors
Schedule of Consolidated Cash Receipts and Disbursements
For the Month Ending June 30, 2004
(In Thousands)
Receipts:
Trade Receivables
KACC Receivables $108,360
KAII Receivables 62,605
---------
Total Trade Receivables 170,965
Asbestos Insurance Recoveries 507
National Refractories Settlement -
Net borrowings under DIP facility -
Proceeds from Asset Sales 2,190
---------
Total Receipts 173,662
Disbursements:
Repayment of DIP facility 17,100
Inventory/Raw Materials 37,044
Capital Expenditures 280
Maintenance, Materials, etc. 5,653
Freight 4,069
Utilities/Energy 9,670
Hourly Payroll 7,511
Salaried Payroll 6,441
Hedging Activities 227
VEBA funding 3,100
Medical - Current and Former Employees 7,613
Annual Insurance Premiums 1,113
Workmen's Compensation 527
Corporate General and Administrative 2,520
JV Fundings - Alumina 37,624
JV Fundings - Primary, Net of Minority Interest 20,355
Other Disbursements 11,893
---------
Total Operating and G&A Disbursements 172,740
Reorganization Items 1,589
---------
Total Disbursements 120,868
---------
Net Cash Flow (667)
Beginning Bank Cash Balances 25,827
---------
Ending Bank Cash Balances 25,160
Reconciling Items 814
---------
Ending Book Cash Balances $25,974
=========
Headquartered in Houston, Texas, Kaiser Aluminum Corporation --
http://www.kaiseral.com/-- operates in all principal aspects of
the aluminum industry, including mining bauxite; refining bauxite
into alumina; production of primary aluminum from alumina; and
manufacturing fabricated and semi-fabricated aluminum products.
The Company filed for chapter 11 protection on February 12, 2002
(Bankr. Del. Case No. 02-10429). Corinne Ball, Esq., at Jones,
Day, Reavis & Pogue, represent the Debtors in their restructuring
efforts. On September 30, 2001, the Company listed $3,364,300,000
in assets and $3,129,400,000 in debts. (Kaiser Bankruptcy News,
Issue No. 50; Bankruptcy Creditors' Service, Inc., 215/945-7000)
KAISER ALUMINUM: Reports $77.8 Million Net Income for July 2004
---------------------------------------------------------------
Kaiser Aluminum Corporation -- All Debtors
Unaudited Balance Sheets
As of July 31, 2004
(In Thousands)
ASSETS
Cash $44,522
Receivables:
Trade 132,306
Other 7,120
---------
Total Receivables 139,426
Inventories 151,966
Prepaid expenses and other current assets 26,787
---------
Total current assets 362,701
Investments in and advances to subsidiaries 175,264
Intercompany receivables/payables, net (105,410)
Property, plant, and equipment - net 226,988
Deferred income taxes -
Other assets 820,480
---------
Total Assets $1,480,023
=========
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities not subject to compromise:
Accounts Payable $77,403
Accrued interest 916
Accrued salaries, wages and related expenses 34,196
Accrued post retirement benefit -- current 4,068
Other accrued liabilities 92,206
Payable to affiliates 56,578
Long term debt - current portion 1,242
---------
Total current liabilities 266,609
Long-term liabilities 45,395
Accrued postretirement benefit obligation -
Long-term debt 2,212
Liabilities subject to compromise 2,841,525
Minority interests 655
Stockholders' equity:
Preference stock -
Common stock 792
Additional capital 539,087
Accumulated deficit - As of filing date (946,926)
Accumulated deficit - Post filing date (1,185,850)
Accumulated other comprehensive income (loss) (83,476)
Note receivable from parent -
---------
Total Liabilities & Stockholders' Equity $1,480,023
=========
Kaiser Aluminum Corporation -- All Debtors
Statements of Operations
For the Month Ending July 31, 2004
(In Thousands)
Net Sales $119,523
Costs and expenses:
Cost of products sold 106,789
Depreciation & amortization 1,866
Selling, administrative, R&D and general 9,615
Other operating charges, net (79,935)
---------
Total costs and expenses 38,335
---------
Operating income (loss) 81,188
Other income (expense):
Interest expenses, net (733)
Reorganization items (3,750)
Other-net 139
---------
Income (loss) before
income taxes and minority interest 76,844
(Provision) benefit for income taxes (243)
Minority interests -
Equity in income (loss) of subsidiaries (1,213)
---------
Net income (loss) $77,814
=========
Kaiser Aluminum Corporation -- All Debtors
Schedule of Consolidated Cash Receipts and Disbursements
For the Month Ending July 31, 2004
(In Thousands)
Receipts:
Trade Receivables
KACC Receivables $87,660
KAII Receivables 46,349
---------
Total Trade Receivables 134,009
Reimbursement from Alpart sales
for CARIFA funding 14,549
Proceeds from Asset Sales 3,534
---------
Total Receipts 152,092
Disbursements:
Inventory/Raw Materials 39,284
Capital Expenditures 586
Maintenance, Materials, etc. 6,255
Freight 4,177
Utilities/Energy 11,406
Hourly Payroll 8,493
Salaried Payroll 5,049
VEBA Advances 1,900
Medical - Current and Former Employees 3,350
Annual Insurance Premiums 2,472
Workmen's Compensation 798
Credit Agreement Fees 750
Corporate General and Administrative 2,812
JV Fundings - Alumina 13,497
Funding for Alpart CARIFA retirement 14,549
JV Fundings - Primary, Net of Minority Interest 5,205
Other Disbursements 7,029
---------
Total Operating and G&A Disbursements 127,594
Reorganization Items 4,402
---------
Total Disbursements 131,996
---------
Net Cash Flow 20,096
Beginning Bank Cash Balances 25,160
---------
Ending Bank Cash Balances 45,256
Reconciling Items (734)
---------
Ending Book Cash Balances $44,522
=========
Headquartered in Houston, Texas, Kaiser Aluminum Corporation --
http://www.kaiseral.com/-- operates in all principal aspects of
the aluminum industry, including mining bauxite; refining bauxite
into alumina; production of primary aluminum from alumina; and
manufacturing fabricated and semi-fabricated aluminum products.
The Company filed for chapter 11 protection on February 12, 2002
(Bankr. Del. Case No. 02-10429). Corinne Ball, Esq., at Jones,
Day, Reavis & Pogue, represent the Debtors in their restructuring
efforts. On September 30, 2001, the Company listed $3,364,300,000
in assets and $3,129,400,000 in debts. (Kaiser Bankruptcy News,
Issue No. 50; Bankruptcy Creditors' Service, Inc., 215/945-7000)
MISSISSIPPI CHEMICAL: Files June to August 2004 Monthly Reports
---------------------------------------------------------------
On September 29, 2004, Mississippi Chemical Corporation and its
domestic subsidiaries filed their Monthly Operating Report for the
months ended June 30, 2004, July 31, 2004, and August 31, 2004,
with the Securities and Exchange Commission.
The Company's consolidated balance sheet showed (in thousands):
June 30, 2004 July 31, 2004 August 31, 2004
------------- ------------- ---------------
Total Assets $387,594 $403,293 $390,052
Total Current
Liabilities 141,711 200,661 195,243
Liabilities
Subject to
Compromise 282,709 231,899 231,899
Shareholders'
Deficit $(78,983) $(75,555) $(79,087)
Full-text copies of the Debtors' Monthly Operating Reports are
available at no charge at:
June 2004 Monthly Operating Report:
http://www.sec.gov/Archives/edgar/data/66895/000006689504000032/exhibit99-11.htm
July 2004 Monthly Operating Report:
http://www.sec.gov/Archives/edgar/data/66895/000006689504000032/exhibit99-21.htm
August 2004 Monthly Operating Report:
http://www.sec.gov/Archives/edgar/data/66895/000006689504000032/exhibit99-31.htm
On May 15, 2003, Mississippi Chemical Corporation and its domestic
subsidiaries filed voluntary petitions for relief under Chapter 11
of Title 11 of the United States Code in the United States
Bankruptcy Court for the Southern District of Mississippi.
TOUCH AMERICA: Releases July 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:
July 31, 2004
---------------
Current Assets $686,409,961.89
Total Assets 613,374,606.04
Postpetition Debts 35,949,740.69
Pre-petition Debts 252,752,914.51
Total Liabilities 288,702,655.20
Net Owner's Equity $324,671,950.84
A full-text copy of the Debtors' July 2004 Monthly Operating
Reports is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1144835/000110465904028688/a04-10946_1ex99df.htm
Headquartered in Butte, Montana, Touch America Holdings, Inc.,
through its principal operating subsidiary, Touch America, Inc.,
develops, owns, and operates data transport and Internet services
to commercial customers. The Company filed for chapter 11
protection on June 19, 2003 (Bankr. D. Del. Case No. 03-11915).
Maureen D. Luke, Esq. and Robert S. Brady, Esq. at Young Conaway
Stargatt & Taylor, LLP represent the Debtor. When the Company
filed for bankruptcy protection, it listed $631,408,000 in total
assets and $554,200,000 in total debts.
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.
On July 12, 2004, Touch America filed its Joint Disclosure
Statement and Chapter 11 Liquidating Plan.
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.
SPIEGEL INC: Reports $35.2 Million Net Loss for July 2004
---------------------------------------------------------
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Balance Sheet
As of July 31, 2004
ASSETS
Current assets:
Cash and cash equivalents $182,261,000
Receivables, net 33,752,000
Inventories 161,385,000
Prepaid expenses 35,022,000
Assets of discontinued operations 75,125,000
--------------
Total current assets 487,545,000
--------------
Property and equipment, net 167,398,000
Intangible assets, net 135,608,000
Other assets 26,843,000
--------------
Total assets $817,394,000
==============
LIABILITIES and STOCKHOLDERS' DEFICIT
Liabilities not subject to compromise:
Current liabilities:
Accounts payable and accrued liabilities $196,873,000
Current portion of long-term debt 48,000,000
Liabilities of discontinued operations 154,356,000
--------------
Total current liabilities 399,229,000
--------------
Deferred lease obligation 11,022,000
Liabilities subject to compromise 1,392,668,000
Total liabilities 1,802,919,000
--------------
Stockholders' deficit:
Class A non-voting common stock,
$1.00 par value; authorized 16,000,000
shares; 14,945,144 shares issued
and outstanding 14,945,000
Class B voting common stock, $1.00
par value; authorized 121,500,000 shares;
117,009,869 shares issued & outstanding 117,010,000
Additional paid-in capital 329,489,000
Accumulated other comprehensive loss (25,277,000)
Accumulated deficit (1,421,692,000)
--------------
Total stockholders' deficit (985,525,000)
--------------
Total liabilities & stockholders' deficit $817,394,000
==============
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Statement of Operations
Four Weeks Ended July 31, 2004
Net sales and other revenues:
Net sales $66,424,000
Other revenue 3,311,000
--------------
69,735,000
Cost of sales and operating expenses:
Cost of sales, including buying
and occupancy expenses 44,103,000
Selling, general & administrative expenses 27,290,000
--------------
71,393,000
Estimated loss of non-debtors (228,000)
Operating loss (1,886,000)
Interest expense 414,000
--------------
Loss from operations before reorganization items (2,300,000)
--------------
Reorganization items, net 3,379,000
--------------
Loss from operations (5,679,000)
--------------
Discontinued operations:
Loss from discontinued operations (29,612,000)
--------------
Net loss ($35,291,000)
==============
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Statement of Cash Flows
Four Weeks Ended July 31, 2004
Cash flows from operating activities:
Net loss ($35,291,000)
Adjustments to reconcile net loss to net cash
used in operating activities:
Reorganization items, net 3,379,000
Depreciation and amortization 2,704,000
Change in assets and liabilities:
(Increase) decrease in receivables, net 3,958,000
(Increase) decrease in investments/advances 185,000
(Increase) decrease in inventories (9,670,000)
(Increase) decrease in prepaid expenses 729,000
Increase (decrease) in accounts payable
and other accrued liabilities 4,768,000
Increase (decrease) in net liabilities of
discontinued operations 21,341,000
(Increase) decrease in refundable
income taxes (594,000)
--------------
Net cash used for operating activities (8,491,000)
--------------
Net cash used for reorganization items (1,784,000)
Cash flows from investing activities:
Net additions to property and equipment (1,264,000)
Net additions to other assets (55,000)
--------------
Net cash provided by investing activities (1,319,000)
--------------
Net cash provided by financing activities -
--------------
Effect of exchange rate changes on cash (141,000)
--------------
Net change in cash and cash equivalents (11,735,000)
Cash & cash equivalents, beginning of period 193,996,000
--------------
Cash & cash equivalents, end of period $182,261,000
==============
Headquartered in Downers Grove, Illinois, Spiegel, Inc. --
http://www.spiegel.com/-- is a leading international general
merchandise and specialty retailer that offers apparel, home
furnishings and other merchandise through catalogs, e-commerce
sites and approximately 560 retail stores. The Company filed for
Chapter 11 protection on March 17, 2003 (Bankr. S.D.N.Y. Case No.
03-11540). James L. Garrity, Jr., Esq., and Marc B. Hankin, Esq.,
at Shearman & Sterling represent the Debtors in their
restructuring efforts. When the Company filed for protection from
its creditors, it listed $1,737,474,862 in assets and
$1,706,761,176 in debts. (Spiegel Bankruptcy News, Issue No. 32;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
SPIEGEL INC: August 2004 Net Loss Narrows to $8.5 Million
---------------------------------------------------------
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Balance Sheet
As of August 28, 2004
ASSETS
Current assets:
Cash and cash equivalents $203,898,000
Receivables, net 30,403,000
Inventories 170,856,000
Prepaid expenses 36,509,000
Assets of discontinued operations 77,737,000
--------------
Total current assets 519,403,000
--------------
Property and equipment, net 125,070,000
Intangible assets, net 135,608,000
Other assets 25,594,000
--------------
Total assets $805,675,000
==============
LIABILITIES and STOCKHOLDERS' DEFICIT
Liabilities not subject to compromise:
Current liabilities:
Accounts payable and accrued liabilities $198,422,000
Current portion of long-term debt 48,000,000
Liabilities of discontinued operations 151,454,000
--------------
Total current liabilities 397,876,000
--------------
Deferred lease obligation 10,756,000
Liabilities subject to compromise 1,390,888,000
Total liabilities 1,799,520,000
--------------
Stockholders' deficit:
Class A non-voting common stock,
$1.00 par value; authorized 16,000,000
shares; 14,945,144 shares issued
and outstanding 14,945,000
Class B voting common stock, $1.00
par value; authorized 121,500,000 shares;
117,009,869 shares issued & outstanding 117,010,000
Additional paid-in capital 329,489,000
Accumulated other comprehensive loss (25,115,000)
Accumulated deficit (1,430,174,000)
--------------
Total stockholders' deficit (993,845,000)
--------------
Total liabilities & stockholders' deficit $805,675,000
==============
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Statement of Operations
Four Weeks Ended August 28, 2004
Net sales and other revenues:
Net sales $74,020,000
Other revenue 2,876,000
--------------
76,896,000
Cost of sales and operating expenses:
Cost of sales, including buying
and occupancy expenses 46,709,000
Selling, general & administrative expenses 32,841,000
--------------
79,550,000
Estimated loss of non-debtors (354,000)
Operating loss (3,008,000)
Interest expense 299,000
--------------
Loss from operations before reorganization items (3,307,000)
--------------
Reorganization items, net 4,066,000
--------------
Loss from operations (7,373,000)
--------------
Discontinued operations:
Earnings from discontinued operations (1,109,000)
--------------
Net loss ($8,482,000)
==============
Spiegel, Inc., and Subsidiaries
Debtors-in-Possession
Unaudited Consolidated Statement of Cash Flows
Four Weeks Ended August 28, 2004
Cash flows from operating activities:
Net loss ($8,482,000)
Adjustments to reconcile net loss to net cash
used in operating activities:
Reorganization items, net 4,066,000
Depreciation and amortization 2,647,000
Loss on sale of property & equipment 2,937,000
Change in assets and liabilities:
(Increase) decrease in receivables, net 3,349,000
(Increase) decrease in investments/advances 201,000
(Increase) decrease in inventories (9,471,000)
(Increase) decrease in prepaid expenses (862,000)
Increase (decrease) in accounts payable
and other accrued liabilities 974,000
Increase (decrease) in net liabilities of
discontinued operations (5,715,000)
(Increase) decrease in refundable
income taxes (624,000)
--------------
Net cash used for operating activities (10,980,000)
--------------
Net cash used for reorganization items (2,291,000)
Cash flows from investing activities:
Net(additions) reductions to property and
equipment (2,671,000)
Proceeds on sale of property and equipment 36,427,000
Net reductions to other assets 991,000
--------------
Net cash provided by investing activities 34,747,000
--------------
Net cash provided by financing activities -
--------------
Effect of exchange rate changes on cash 161,000
--------------
Net change in cash and cash equivalents 21,637,000
Cash & cash equivalents, beginning of period 182,261,000
--------------
Cash & cash equivalents, end of period $203,898,000
==============
Headquartered in Downers Grove, Illinois, Spiegel, Inc. --
http://www.spiegel.com/-- is a leading international general
merchandise and specialty retailer that offers apparel, home
furnishings and other merchandise through catalogs, e-commerce
sites and approximately 560 retail stores. The Company filed for
Chapter 11 protection on March 17, 2003 (Bankr. S.D.N.Y. Case No.
03-11540). James L. Garrity, Jr., Esq., and Marc B. Hankin, Esq.,
at Shearman & Sterling represent the Debtors in their
restructuring efforts. When the Company filed for protection from
its creditors, it listed $1,737,474,862 in assets and
$1,706,761,176 in debts. (Spiegel Bankruptcy News, Issue No. 32;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
UAL CORP: Posts $56.4 Million Net Loss in August 2004
-----------------------------------------------------
UAL Corporation (OTCBB: UALAQ.OB), the holding company whose
primary subsidiary is United Airlines, filed its August Monthly
Operating Report with the United States Bankruptcy Court. The
company reported an operating loss of $12 million for August
2004. Mainline passenger unit revenue decreased 5% year-over-
year. Unit costs were up 4% over last year. Excluding fuel, unit
costs improved 3% year-over-year. The company reported a net loss
of $56 million, including $11 million in reorganization expenses.
UAL met the requirements of its debtor-in-possession financing.
"The weak domestic revenue environment, coupled with intense
competition and fuel prices still well above $40 a barrel
continue to negatively impact United and the industry," said Jake
Brace, executive vice president and chief financial officer.
"The environment does not appear to be changing, so we must, if
we are to be competitive. The situation underscores our need to
quickly reduce our cost structure even further and move forward
with our restructuring work and our efforts to attract suitable
exit financing."
Mr. Brace said fuel prices averaged $45 a barrel in August,
compared with $32 a barrel in August 2003. At the same time,
average fares in August decreased substantially due to the highly
competitive market.
UAL ended August with a cash balance of about $2.0 billion,
which included $839 million in restricted cash (filing entities
only). The cash balance decreased approximately $77 million
during the month of August.
United continued to deliver strong operational results in August,
with an on-time :14 arrival performance rate of 80.0% and a load
factor of 83.8%. Employees also exceeded the company's goals for
August for customer satisfaction, as measured by definite intent
to repurchase.
A full-text copy of UAL Corporation's August 2004 Operating
Report is available for free at the Securities and Exchange
Commission at:
http://www.sec.gov/Archives/edgar/data/100517/000010051704000033/sepmor.htm
UAL Corporation and Subsidiary Companies
Condensed Consolidating Statement of Operations
For The Month Ended August 31, 2004
(In Thousands)
Total operating revenues $1,644,172
Total operating expenses 1,656,336
Earnings (loss) from operations (12,164)
Non-operating income (expenses):
Net interest expense (33,292)
Other income (expenses), net (173)
----------
Total non-operating income (expenses) (33,466)
Net Earnings (loss) before Reorganization items (45,630)
Reorganization items (10,779)
----------
Net earnings (loss) ($56,409)
==========
Headquartered in Chicago, Illinois, UAL Corporation --
http://www.united.com/-- through United Air Lines, Inc., is the
holding company for United Airlines -- the world's second largest
air carrier. The Company filed for chapter 11 protection on
December 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M.
Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq.,
and Steven R. Kotarba, Esq., at Kirkland & Ellis, represent the
Debtors in their restructuring efforts. When the Debtors filed
for protection from their creditors, they listed $24,190,000,000
in assets and $22,787,000,000 in debts. (United Airlines
Bankruptcy News, Issue No. 61; Bankruptcy Creditors' Service,
Inc., 215/945-7000)
WINSTAR COMMS: Releases July 2004 Monthly Operating Report
----------------------------------------------------------
Winstar Communications, Inc., delivered illegible copies of the
balance sheet, income statement and statement of cash flows to
the Bankruptcy Court Clerk.
Winstar posted a net profit of $2.4 million for July 2004. Its
balance sheet shows a $26.5 million net owners' equity as of
July 31, 2004.
A copy of Winstar's July 2004 Operating Report is available at no
charge at:
http://bankrupt.com/misc/july_2004_operating_report.pdf
*********
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
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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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*** End of Transmission ***