/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/041009.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 9, 2004, Vol. 8, No. 219 Headlines DII/KBR: Posts $129 Million Net Income in August 2004 DII/KBR: Mid Valley's August 2004 Monthly Operating Report DII/KBR: Kellogg Brown & Root's Aug. 2004 Monthly Operating Report DII/KBR: KBR Engineering's Aug. 2004 Monthly Operating Report DII/KBR: KBR Technical's August 2004 Monthly Operating Report DII/KBR: KBR Int'l. Posts $4.9 Million Net Loss in August 2004 DII/KBR: KBR (Panama)'s August 2004 Monthly Operating Report DII/KBR: BPM Minerals' August Net Income Tops $1.2 Million FRESH CHOICE: Posts $3.2M Net Loss in Revised MOR Ended Aug. 8 FRESH CHOICE: Posts $792,003 Net Loss for Period Ended Sept. 5 MIRANT CORPORATION: Reports $98 Million Net Profit in July 2004 MIRANT: MAGi Reports $69.9 Million Net Income for July 2004 PARMALAT: Finanziaria Reports August 2004 Financial Results PILLOWTEX CORP: August 2004 Cash Receipts & Disbursements Report SOLUTIA INC: Posts $15 Million Net Loss for August 2004 TRENWICK GROUP: Posts $4,867,784 Net Loss in August 2004 WESTPOINT STEVENS: Reports $9.1 Million Net Loss in August 2004 WESTPOINT STEVENS: WP Stevens I August 2004 Monthly Report WESTPOINT STEVENS: JP Stevens August 2004 Monthly Operating Report WESTPOINT STEVENS: JP Stevens Enterprises' August Monthly Report WESTPOINT STEVENS: WP Stevens Stores' August 2004 Monthly Report ********* DII/KBR: Posts $129 Million Net Income in August 2004 ----------------------------------------------------- DII Industries, LLC Unaudited Balance Sheet As of August 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents $19,191 Escrow - prepetition payments 142,974 Investment account with Parent 408,000 Trade receivables - Unbilled work on incomplete contracts - Other receivables 9 Inventories - Right to Halliburton Shares 1,717,408 Insurance for asbestos & silica-related PI claims 889,072 Other current assets 311,471 ---------- Total current assets 3,488,125 Net property, plant and equipment - Investments in consolidated subsidiaries 1,872,232 Equity in related companies - Intercompany with related companies (933,009) Goodwill, net - Non-current deferred income taxes 349,000 Insurance for asbestos & silica-related PI claims 468,449 Other assets 12 ---------- Total assets $5,244,809 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - DIP Financing - Current maturities of long-term debt - Accounts payable $3,329 Accrued employee compensation and benefits 1 Accrued interest payable 7,976 Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims 2,402,028 Other current liabilities 11,000 ---------- Total current liabilities 2,424,334 Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims 1,724,058 Minority interest in consolidated subsidiaries - Other liabilities 5,182 ---------- Total liabilities 4,153,574 Total shareholder's equity 1,091,235 ---------- Total liabilities and shareholder's equity $5,244,809 ========== DII Industries, LLC Unaudited Income Statement Month ended August 31, 2004 (in thousands) Revenues - Operating costs and expenses ($25) ---------- Operating income/(loss) 25 Interest expense - Interest income 5,762 Foreign currency gains (losses) 7 Other non-operating income - net - Equity in earnings/(loss) of subsidiaries (1,994) ---------- Income/(loss) before taxes & minority interest 3,800 Income tax benefit/(provision) (1,652) ---------- Income/(loss) from continuing operations 2,148 ---------- Income/(loss) from discontinued operations 126,806 ---------- Net Income/(loss) $128,954 ========== DII/KBR: Mid Valley's August 2004 Monthly Operating Report ---------------------------------------------------------- Mid-Valley, Inc. Unaudited Balance Sheet As of August 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents - Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables - Inventories - Other current assets - ---------- Total current assets - Net property, plant and equipment - Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies - Intercompany with Parent $40,353 Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 558 ---------- Total assets $40,911 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable - Accrued employee compensation and benefits 23 Accrued interest payable - Advanced billings on uncompleted contracts 532 Asbestos and silica-related PI claims - Other current liabilities 2,032 ---------- Total current liabilities 2,587 Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 2,587 Total shareholder's equity 38,324 ---------- Total liabilities and shareholder's equity $40,911 ========== Mid-Valley, Inc. Unaudited Income Statement Month ended August 31, 2004 (in thousands) Revenues - Operating costs and expenses $3 ---------- Operating income (3) Interest expense - Interest income - Foreign currency gains (losses) - Other non-operating income - net - ---------- Income before taxes & minority interest (3) Income tax benefit - ---------- Net Income/(loss) ($3) ========== DII/KBR: Kellogg Brown & Root's Aug. 2004 Monthly Operating Report ------------------------------------------------------------------ Kellogg Brown & Root, Inc. Unaudited Balance Sheet As of August 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents ($24,898) Escrow - prepetition payments - Trade receivables 100,237 Unbilled work on uncompleted contracts 132,858 Other receivables 30,903 Inventories 15,284 Other current assets 30,997 ---------- Total current assets 285,381 Net property, plant and equipment 60,665 Investments in consolidated subsidiaries 248,679 Equity in related companies 55,275 Intercompany with related companies (30,333) Intercompany with Parent 566,503 Goodwill, net 171,213 Non-current deferred income taxes 209,000 Insurance for asbestos & silica-related PI claims - Right to Halliburton shares - Other assets 70,807 ---------- Total assets $1,637,190 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $76,764 Accrued employee compensation and benefits 52,098 Accrued interest payable - Advanced billings on uncompleted contracts 226,610 Asbestos and silica-related PI claims 74,337 Other current liabilities 347,510 ---------- Total current liabilities 777,319 Long-term debt - Employee compensation and benefits 59,598 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities 84,502 ---------- Total liabilities 921,419 Total shareholder's equity 715,771 ---------- Total liabilities and shareholder's equity $1,637,190 ========== Kellogg Brown & Root, Inc. Unaudited Income Statement Month ended August 31, 2004 (in thousands) Revenues $133,020 Operating costs and expenses 83,740 ---------- Operating income 49,280 Interest expense (2,793) Interest income 250 Foreign currency gains (losses) (877) Other non-operating income - net - ---------- Income before taxes and minority interest 45,860 Income tax benefit/(provision) (15,117) ---------- Income from continuing operations 30,743 Loss from discontinued operations - ---------- Net Income $30,743 ========== DII/KBR: KBR Engineering's Aug. 2004 Monthly Operating Report ------------------------------------------------------------- KBR Engineering Corp. Unaudited Balance Sheet As of August 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents - Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables - Inventories - Other current assets - ---------- Total current assets - Net property, plant and equipment - Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies $77 Intercompany with Parent - Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $77 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable - Accrued employee compensation and benefits - Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims - Other current liabilities - ---------- Total current liabilities - Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities - Total shareholder's equity $77 ---------- Total liabilities and shareholder's equity $77 ========== KBR Engineering Corp. reports no income for August 2004. DII/KBR: KBR Technical's August 2004 Monthly Operating Report ------------------------------------------------------------- KBR Technical Services, Inc. Unaudited Balance Sheet As of August 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents $312 Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables 421 Inventories - Other current assets 886 ---------- Total current assets 1,619 Net property, plant and equipment 25,891 Investments in consolidated subsidiaries 1,555 Equity in related companies - Intercompany with related companies 6,976 Intercompany with Parent - Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $36,041 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $224 Accrued employee compensation and benefits 19,755 Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims - Other current liabilities 686 ---------- Total current liabilities 20,665 Long-term debt - Employee compensation and benefits 2,503 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 23,168 Total shareholder's equity 12,873 ---------- Total liabilities and shareholder's equity $36,041 ========== KBR Technical Services, Inc. Unaudited Income Statement Month ended August 31, 2004 (in thousands) Revenues - Operating costs and expenses $466 ---------- Operating income/(loss) (466) Interest expense (138) Interest income - Foreign currency gains (losses) 6 Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest (598) Income tax benefit - ---------- Net Income/(loss) ($598) ========== DII/KBR: KBR Int'l. Posts $4.9 Million Net Loss in August 2004 -------------------------------------------------------------- KBR International, Inc. Unaudited Balance Sheet As of August 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents $40,131 Escrow - prepetition payments - Trade receivables 18,153 Unbilled work on uncompleted contracts 18,393 Other receivables 20,349 Inventories - Other current assets 3,039 ---------- Total current assets 100,065 Net property, plant and equipment 329 Investments in consolidated subsidiaries 28,154 Equity in related companies 3,312 Intercompany with related companies - Intercompany with Parent (49,037) Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 449 ---------- Total assets $83,272 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $12,778 Accrued employee compensation and benefits 233 Accrued interest payable - Advanced billings on uncompleted contracts 14,648 Asbestos and silica-related PI claims - Other current liabilities 11,852 ---------- Total current liabilities 39,511 Long-term debt - Employee compensation and benefits 469 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities 116 ---------- Total liabilities 40,096 Total shareholder's equity 43,176 ---------- Total liabilities and shareholder's equity $83,272 ========== KBR International, Inc. Unaudited Income Statement Month ended August 31, 2004 (in thousands) Revenues $8,078 Operating costs and expenses 12,615 ---------- Operating income/(loss) (4,537) Interest expense (442) Interest income 111 Foreign currency gains (losses) 194 Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest (4,674) Income tax benefit/(provision) (249) ---------- Net Income/(loss) ($4,923) ========== DII/KBR: KBR (Panama)'s August 2004 Monthly Operating Report ------------------------------------------------------------ KBR International, Inc. (Panama) Unaudited Balance Sheet As of August 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents $35,197 Escrow - prepetition payments - Trade receivables 6,061 Unbilled work on uncompleted contracts 1,043 Other receivables 298 Inventories - Other current assets 783 ---------- Total current assets 43,382 Net property, plant and equipment 6,431 Investments in consolidated subsidiaries 23,865 Equity in related companies - Intercompany with related companies - Intercompany with Parent (41,476) Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 36 ---------- Total assets $32,238 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable $462 Current maturities of long-term debt - Accounts payable 1,850 Accrued employee compensation and benefits 2,862 Accrued interest payable - Advanced billings on uncompleted contracts 572 Asbestos and silica-related PI claims - Other current liabilities 489 ---------- Total current liabilities 6,235 Long-term debt - Employee compensation and benefits 613 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 6,848 Total shareholder's equity 25,390 ---------- Total liabilities and shareholder's equity $32,238 ========== KBR International, Inc. (Panama) Unaudited Income Statement Month ended August 31, 2004 (in thousands) Revenues $1,034 Operating costs and expenses 3,187 ---------- Operating income/(loss) (2,153) Interest expense (37) Interest income 38 Foreign currency gains (losses) 52 Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest (2,100) Income tax benefit/(provision) - ---------- Net Income/(loss) ($2,100) ========== DII/KBR: BPM Minerals' August Net Income Tops $1.2 Million ---------------------------------------------------------- BPM Minerals, LLC Unaudited Balance Sheet As of August 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents ($380) Escrow - prepetition payments - Trade receivables 6,165 Unbilled work on uncompleted contracts - Other receivables 3,652 Inventories 4,725 Other current assets 1,470 ---------- Total current assets 15,633 Net property, plant and equipment 8,794 Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies - Intercompany with Parent 45,152 Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $69,579 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $1,042 Accrued employee compensation and benefits - Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims - Other current liabilities 101 ---------- Total current liabilities 1,143 Long-term debt - Employee compensation and benefits 519 Asbestos and silica-related PI claims 42,000 Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 43,662 Total shareholder's equity 25,917 ---------- Total liabilities and shareholder's equity $69,579 ========== BPM Minerals, LLC Unaudited Income Statement Month ended August 31, 2004 (in thousands) Revenues $8,086 Operating costs and expenses 6,936 ---------- Operating income 1,150 Interest expense - Interest income - Foreign currency gains (losses) - Other non-operating income - net - ---------- Income before taxes and minority interest 1,150 Provision for income tax - ---------- Net Income $1,150 ========== FRESH CHOICE: Posts $3.2M Net Loss in Revised MOR Ended Aug. 8 -------------------------------------------------------------- On September 30, 2004, Fresh Choice, Inc., filed with the United States Bankruptcy Court for the Northern District of California a revised Monthly Operating Report for the 4-week period ended August 8, 2004. The Company posts a $3,222,045 net loss in $2,443,387 of total revenues for the period from July 12, 2004, through August 8, 2004. At August 8, 2004, Fresh Choice, Inc.'s balance sheet shows: Current Assets $3,308,650 Total Assets 23,834,017 Current Liabilities 4,023,027 Total Prepetition Liabilities 16,340,828 Total Liabilities 20,372,402 Total Equity $3,461,615 A full-text copy of Fresh Choice, Inc.'s revised Monthly Operating Report for the period ended August 8, 2004, is available at no charge at: http://www.sec.gov/Archives/edgar/data/893741/000115752304008947/a4731611ex991.txt Headquartered in Morgan Hill, California, Fresh Choice -- http://www.freshchoice.com/-- owns and operates a chain of more than 40 salad bar eateries, mostly located in California. The company filed for chapter 11 protection on July 12, 2004 (Bankr. N.D. Calif. Case No. 04-54318). Debra I. Grassgreen, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $29,651,000 in total assets and $14,348,000 in total debts. FRESH CHOICE: Posts $792,003 Net Loss for Period Ended Sept. 5 -------------------------------------------------------------- On September 30, 2004, Fresh Choice, Inc., filed with the United States Bankruptcy Court for the Northern District of California its Monthly Operating Report for the 4-week period ended September 5, 2004. The Company posts a $792,003 net loss in $2,327,974 of total revenues for the 4-week period from August 9, 2004 through September 5, 2004. At Sept. 5, 2004, Fresh Choice, Inc.'s balance sheet shows: Current Assets $7,275,576 Total Assets 23,772,691 Current Liabilities 5,178,983 Total Prepetition Liabilities 15,970,303 Total Liabilities 21,102,802 Total Equity $2,669,889 A full-text copy of Fresh Choice, Inc.'s Monthly Operating Report for the period ended Sept. 5, 2004, is available at no charge at: http://www.sec.gov/Archives/edgar/data/893741/000115752304008951/a4731637ex991.txt Headquartered in Morgan Hill, California, Fresh Choice -- http://www.freshchoice.com/-- owns and operates a chain of more than 40 salad bar eateries, mostly located in California. The company filed for chapter 11 protection on July 12, 2004 (Bankr. N.D. Calif. Case No. 04-54318). Debra I. Grassgreen, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $29,651,000 in total assets and $14,348,000 in total debts. MIRANT CORPORATION: Reports $98 Million Net Profit in July 2004 --------------------------------------------------------------- Mirant Corporation and Subsidiaries Consolidated Balance Sheet As of July 31, 2004 ASSETS Cash and cash equivalents $1,397,338,777 Accounts receivable - net 1,063,943,133 Assets from risk management activities 168,129,671 Derivative hedging instruments - Inventories 306,192,546 Other 496,959,865 --------------- Total Current Assets 3,432,563,992 Property, plant and equipment 5,308,814,007 Less: accumulated depreciation/depletion 734,952,446 Leasehold interests - net 1,529,915,078 Construction work in progress 87,254,324 Investment in suspended construction 356,733,705 --------------- Total net property, plant and equipment 6,547,764,669 Investments 246,939,209 Long-term accounts receivable - net 30,797,116 Notes receivable - net - Assets from risk management activities 137,134,195 Goodwill - net 587,304,353 0Other intangibles - net 273,767,995 Derivative hedging instruments - Restricted cash, non-current 44,424,897 Other long-term assets 1 Miscellaneous deferred charges 386,644,003 --------------- Total Non-current Assets 1,707,011,768 --------------- TOTAL ASSETS $11,687,340,429 =============== LIABILITIES AND EQUITY Postpetition Liabilities: Debt $1,399,851,727 Accounts Payable 514,350,441 Liabilities from risk management activities 359,725,446 Obligations under energy deliveries 114,869,758 Derivative hedging instruments - Other 439,716,289 Miscellaneous deferred credits 523,202,762 --------------- Total postpetition liabilities 3,351,716,423 Prepetition Liabilities 8,818,681,432 --------------- TOTAL LIABILITIES 12,170,397,855 EQUITY: Minority interest in subsidiaries 168,197,987 Mandatory redeemable securities - Common stock 4,056,621 Additional paid-in capital 4,917,963,428 Retained earnings (5,517,856,006) Treasury stock, at cost (2,260,000) Accumulated other comprehensive income (53,159,456) --------------- Total Equity (483,057,426) --------------- TOTAL LIABILITIES AND OWNERS' EQUITY $11,687,340,429 =============== Mirant Corporation and Subsidiaries Consolidated Statements of Income For the month ending July 31, 2004 REVENUES: Generation $396,457,453 Net trading revenue (13,083,602) Distribution 53,541,578 Other 462,321 --------------- Net Revenue 437,377,749 OPERATING EXPENSES: Energy cost 216,154,509 Operations and maintenance 80,080,145 Depreciation and amortization 26,054,761 Gain on sale of property and investment 76,863 Impairment loss 240,850 Restructuring costs (113,533) --------------- Total Operating Expenses 322,493,596 --------------- Income before non-operating income and expense 114,884,153 OTHER INCOME AND EXPENSES: Interest income 498,703 Interest expense (11,201,500) Equity in income of affiliates 2,222,406 Other (3,048,723) Reorganization items 3,975,658 Minority interest (2,659,615) Net income from discontinued operations - --------------- Total Other Income (10,213,072) Provision for income tax (6,577,110) --------------- NET PROFIT (LOSS) $98,093,971 =============== Mirant Corporation Unconsolidated Cash Receipts and Disbursements For the month ending July 31, 2004 Cash, beginning of month $296,293,707 Non-Operating Receipts: Total non-operating receipts 24,326,295 --------------- Total receipts 24,326,295 --------------- Total Cash Available 320,620,002 Operating Disbursements 0 Reorganization Expenses 462,277 --------------- Total disbursements 462,277 --------------- Net Cash Flow 23,864,068 --------------- Cash, end of month $320,157,775 =============== MIRANT: MAGi Reports $69.9 Million Net Income for July 2004 ----------------------------------------------------------- Mirant Americas Generation, LLC, and Subsidiaries Consolidated Balance Sheets As of July 31, 2004 ASSETS Cash and cash equivalents $392,145,636 Accounts receivable - net 606,638,532 Assets from risk management activities 68,746,287 Derivative hedging instruments - Inventories 93,468,662 Other 112,227,491 --------------- Total Current Assets 1,273,226,607 Property, plant and equipment 2,197,231,525 Less: accumulated depreciation/depletion 302,255,448 Construction work in progress 31,416,008 Investment in suspended construction 281,267,432 --------------- Total net property, plant and equipment 2,207,659,518 Investments 25,000 Long-term accounts receivable - net 94,164,132 Notes receivable - net 223,275,000 Assets from risk management activities 37,012,914 Goodwill - net - Other intangibles - net 210,103,664 Derivative hedging instruments - Restricted cash, non-current - Other long-term assets - Miscellaneous deferred charges 197,771,210 --------------- Total Non-current Assets 762,351,920 --------------- TOTAL ASSETS $4,243,238,045 =============== LIABILITIES AND EQUITY Postpetition Liabilities: Debt $0 Accounts Payable 293,406,990 Liabilities from risk management activities 149,886,696 Obligations under energy deliveries - Derivative hedging instruments - Other 136,251,910 Miscellaneous deferred credits 14,531,760 --------------- Total postpetition liabilities 594,077,356 Prepetition Liabilities 3,435,965,954 --------------- TOTAL LIABILITIES 4,030,043,310 EQUITY: Minority interest in subsidiaries 35,002 Mandatory redeemable securities - Common stock 1,000 Additional paid-in capital 3,858,859,717 Retained earnings (3,645,700,984) Accumulated other comprehensive income - --------------- Total Equity 213,194,735 --------------- TOTAL LIABILITIES AND OWNERS' EQUITY $4,243,238,045 =============== Mirant Americas Generation, LLC, and Subsidiaries Consolidated Statements of Income For the month ending July 31, 2004 REVENUES: Generation $246,906,309 Net trading revenue - Other 71,232 --------------- Net Revenue 246,977,542 OPERATING EXPENSES: Energy cost 126,512,966 Operations and Maintenance 38,604,966 Depreciation and amortization 7,362,401 Gain on sale of property and investments - Impairment Loss 100,132 Restructuring costs 51,009 --------------- Total Operating Expenses 172,631,474 --------------- Income before non-operating income and expense 74,346,068 OTHER INCOME AND EXPENSES: Interest income - Interest expense (513,912) Other 144,125 Reorganization items (16,178,764) Loss from discontinued operations - Minority interest - --------------- Total Other Income (expense) (16,548,552) Provision for income tax 12,060,045 --------------- NET PROFIT (LOSS) $69,857,561 =============== Mirant Americas Generation, LLC Unconsolidated Cash Receipts and Disbursements For the month ending July 31, 2004 Cash, beginning of month $99,351,816 Non-Operating Receipts: Loans and advances (14,237,219) Other - --------------- Total non-operating receipts (14,237,219) --------------- Total receipts (14,237,219) --------------- Total Cash Available 113,589,035 REORGANIZATION EXPENSES: Professional fees 0 --------------- Total reorganization expenses 0 --------------- Total disbursements 0 --------------- Net Cash Flow 14,237,219 --------------- Cash, end of month $113,589,035 =============== PARMALAT: Finanziaria Reports August 2004 Financial Results ----------------------------------------------------------- Parmalat Finanziaria SpA in Extraordinary Administration communicates the financial and economic results for the Parmalat Group as at 31 August 2004. A number of the non-Italian operations of the Group identified in previous months as subject to "Special Proceedings" (for example USA Dairy, Brazil, Chile, EVH) and some financial companies (for example Parmalat Capital Finance) are currently subject to certain restrictions on their management as a result of the same local proceedings, with the result that these operations are effectively outside of the control of Parmalat Finanziaria SpA in Extraordinary Administration. It has, for this reason, been decided to remove these businesses from the total consolidation area of the Group and to record them according to a net equity methodology. This will be the case while any eventual obligations Parmalat Finanziaria SpA in Extraordinary Administration may be found to have on the basis of legislation in force in the countries in which these businesses are headquartered, together with any guarantees to those that financed these companies, have been examined in greater detail and checked. More specifically: -- USA Dairy (Parmalat USA Corp., Farmland Dairies, Milk Products of Alabama) is the American business operating in the milk and milk related products sector and is subject to Chapter 11 protection; -- for two Brazilian companies (Parmalat Brasil and Parmalat Partecipacoes) a local Concordata procedure has been agreed that also covers their subsidiary companies; -- the Chilean business is also subject to a local concordat procedure; -- EVH, a company incorporated in Canada, has been granted creditor protection; -- Parmalat Capital Finance has been placed into a liquidation procedure by the local court. This group of companies includes Eurofood IFSC, which is currently subject to a dispute with the Irish judicial authorities that contend that the Italian Extraordinary Administration proceedings do not apply to this company. As a consequence, pro forma results for the revised consolidation relating to the previous financial year have been drawn up. It is these figures, set out in the following tables that are comparable with the relevant results for the current year. FINANCIAL RESULTS Highlights (in EUR millions) Revenues -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 2,465.0 2,465.0 2,406.9 Non Core Activities 1,152.5 501.9 376.4 -------- ------------- ------- Total 3,617.5 2,966.9 2,783.3 ======== ============= ======= EBITDA -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 144.9 144.9 167.9 Non Core Activities (69.0) (28.7) (15.2) -------- ------------- ------- Total 75.9 116.2 152.7 ======== ============= ======= % of Revenues -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 5.9 5.9 7.0 Non Core Activities (6.0) (5.7) (4.0) -------- ------------- ------- Total 2.1 3.9 5.5 ======== ============= ======= * Core Activities: consist of drinks products (milk and fruit juice) and milk-based products, focused on approximately 30 brands ("global" brands or strong local brands), centered on high potential countries where there is strong demand for healthy lifestyle products, the willingness to recognize premium prices for the Parmalat brand and the availability of leading edge technology. ** Non-core activities: these are countries and activities considered to be non-strategic that will be subject to divestment. Core Activities Core Activity revenues have fallen slightly (down 2.4%) when compared to the same period in the previous year (EUR2,406.9 million compared to EUR2,465.0 million), while EBITDA improved by 15.9% to EUR167.9 million compared to EUR144.9 million in August 2003. This improvement in operating results is largely due to initiatives of a commercial nature and thanks to operating and structural cost reduction measures. These measures have together neutralized the effect of the fall in volumes. These results do not take account of the extraordinary costs relating to the Administration procedure (since these represent an extraordinary event) of some EUR36.2 million for the period to date. Revenues for the last month (the difference between the revenue figure reported at the end of August 2004 and that to the end of July 2004) were EUR296.3 million, down 9.1% on the previous month's figure of EUR325.8 million. EBITDA of EUR21.1 million, even if slightly lower in absolute terms compared to the EUR22.2 million recorded in July, increased as a percentage of revenues (7.1% compared to 6.8% in July). Specifically, looking at the Group's main geographical areas of operation, the following is evident: -- Italy Revenues for the period to the end of August reached EUR916.5 million, down 8.2% compared to the EUR998.5 million recorded in the same period in 2003. However, as highlighted in the previous month, at revenues reduction EBITDA improved by 12.6% moving from EUR55.5 million at 31 August 2003 to EUR62.5 million as at 31 August 2004. EBITDA increased as a percentage of revenues from 5.6% to 6.8%. Revenues for the month of August were EUR110.2 million while EBITDA was EUR6.3 million (5.7% of revenues). The trend remains a positive one even if reduced in magnitude compared to the previous months. Improved core business revenues, confirming the trend of the previous months, relate to the dairy businesses (principally yogurt); these divisions have seen a smaller fall in volumes than other areas of the business and have benefited from the heavy cutbacks in promotional and advertising expenditure and in lower general expenses. However, the fruit juice activities have been hit by the less favorable weather conditions of this year compared to the same period a year previously. It should also be noted that there has been an increase in the cost of some raw materials (for example, of milk bought by Parmalat SpA, which has increased in price further compared to July) and an increased impact in percentage terms of fixed business costs (which remain unchanged in absolute terms compared to the previous year). Steps are under way in the second half of the year in order to reduce the level of these costs. -- Spain Revenues for the period were EUR155.3 million compared to the EUR159.3 million achieved at 31 August 2003. EBITDA for the same period was down from EUR16.3 million to EUR11.0 million. Revenues for the month of August 2004 were EUR18.6 million while EBITDA was EUR0.7 million (3.8% of revenues), down on the trend of recent months. Among the factors underlying the decrease in EBITDA are the increase in the cost of milk from the beginning of this year which has not been balanced by corresponding increases in selling prices. To this can be added a lower contribution from seasonally influenced products (Royne branded ice creams and milk shakes) that have been heavily penalized by the less clement weather conditions than were seen in the same period last year and the notable fall in the number of tourists in Spain. It should be noted that there has been increased price competition. There has also been a particular need to counter a strong promotional campaign by international competitors in the yogurt sector while in the flavored milk sector competitors have been progressively increasing their television advertising spend. -- South Africa Revenues as at 31 August 2004 of EUR160.7 million grew 34.7% compared to the EUR119.3 million of the same period in 2003. EBITDA also grew significantly from EUR9.6 million to EUR12.6 million (+31.3%). This marked improvement at the revenue and EBITDA levels compared to the same period of the previous year was due to a number of factors: the acquisition of new brands (Simonsberg), the increased strength of the Parmalat brand in the yogurt and cheese sectors, a marked increase in UHT milk volumes as well as to the favorable appreciation of the South African Rand against the Euro (+7.8%). Also in volume terms there was an increase in sales of low margin products such as bulk cheese. Revenues for the month of August 2004 were EUR25.5 million while EBITDA for the month was EUR2.0 million (7.8% of revenues). -- Venezuela The major political and social instability that has impacted Venezuela for some time has been one of the main causes of a significant depreciation of the Venezuelan currency against the Euro (-25.9% compared to August 2003). The absence of sufficient credit lines for the importation of powdered milk, increased raw material prices in the domestic market not balanced by a rise in retail pricing, as well as reduced sales volumes in fruit juices, led to a further marked reduction in revenues which fell from EUR 131.9 million at August 2003 to EUR96.9 million at the end of August 2004 (-26.5%). There was an accompanying strong decrease in EBITDA which fell in absolute terms from EUR16.9 million to EUR3.0 million and as a percentage of revenues from 12.8% to 3.1%. Revenues for the month are EUR9.7 million and EBITDA is EUR0.6 million. However in August there was a slight improvement in operating profitability compared to the previous month (from 2.4% in July to 6.2% in August) thanks certainly to the price increase of condensed milk that occurred during the month. -- Canada In spite of the slight depreciation of the Canadian dollar relative to the Euro since August 2003 (-2.6%) revenues were up, increasing from EUR748.1 million for the same period in 2003 to EUR771.5 million to the end of August this year. At net revenues growth, EBITDA increased markedly both in absolute terms (up 14.3% compared to August 2003 from EUR44.0 million to EUR50.3 million) and as a percentage of revenues (+0.6% from 5.9% to 6.5%). This was thanks to close control of advertising and promotional expenses and of general costs. Revenues for the month in Canada were EUR103.1 million while EBITDA was EUR7.4 million (7.2% of revenues). -- Australia Revenues for the period reached EUR242.2 million, in line with the previous year's EUR239.7 million. EBITDA was also stable at EUR19.5 million compared to EUR18.6 million. These results were achieved thanks to a favorable trend in the Australian dollar/Euro exchange rate (+5.6%), an increase in milk volumes (particularly pasteurized milk), a reduction in general and promotional expenses and improved raw materials purchasing. These factors allowed for the reduced average unit selling price of milk implemented by the management during the month. Revenues for the month of August were EUR22.2 million while EBITDA was EUR2.2 million. Non-Core Activities Non-Core Activities' revenues as at 31 August 2004, while down compared to the same period last year (EUR376.4 million compared to EUR501.9 million, down 25.0%), were accompanied by an improved EBITDA result, which while still negative, showed improvement at a negative EUR15.2 million compared to a negative EUR28.7 million for the same period in 2003. In August 2004 total sales were EUR18.6 million whilst EBITDA was zero. The strong reduction in losses compared to 2003 is principally linked to actions undertaken in Italy and at the US Bakery operations. Italy The Non-Core activities of Parmalat SpA while reporting lower revenues than at the end of August 2003 showed improved operational profitability (of 57.9% moving from a negative EUR10.7 million to a negative EUR4.5 million). To this has contributed the suspension of the activities in the mineral water sector and a drastic reduction in promotional and advertising activities related to bakery and juices. USA Bakery Revenues generated by the US bakery activities (EUR188.0 million in August 2004 compared to EUR231.4 million at the end of August 2003) were lower, this time by 18.8%. The heavy depreciation of the US dollar during the year (down 10.5%) should be noted. However, the negative effect of the fall in volumes and of the increase in the price of raw materials has been balanced by more targeted promotional investment and by the reorganization of the operations (in July the Bollingbrook Head Office was closed down) and the reduction of general expenses. Thanks to these moves, there has been a marked improvement in EBITDA compared to the same period last year, moving from a negative EUR13.8 million in 2003 to a negative EUR6.6 million at the end of August 2004. Among the other companies in this category two Portuguese businesses -- FIT and Italagro -- stand out. Both, in the face of lower revenues, saw an increase in EBITDA. Specifically, EBITDA at Italagro grew by 30.8% year-on-year, while at FIT EBITDA more than doubled. NET FINANCIAL POSITION Highlights (in EUR millions) Situation Situation Situation Situation as at Pro-Forma as at as at as at 12/31/2003 12/31/2003 07/31/2004 08/31/2004 ---------- --------------- ---------- ---------- Short term financial assets (121.4) (104.7) (125.2) (126.0) of which: Liquidity financial assets (20.9) (20.9) (10.4) (1.0) Available liquidity (100.5) (83.8) (114.2) (125.0) Accruals on financial assets (incl. Interco.) (61.9) (57.2) (76.6) (31.0) ---------- --------------- ---------- ---------- Total short term financial assets (183.3) (161.9) (201.8) (157.0) ---------- --------------- ---------- ---------- Financial debts 13,457.5 11,402.6 11,447.7 11,448.6 Accruals on financial liabilities (incl. Interco.) 256.2 200.8 231.0 229.3 ---------- --------------- ---------- ---------- Total financial liabilities 13,713.7 11,603.4 11,678.7 11,677.9 Financial indebtedness/(Fully consolidated companies) 13,530.4 11,441.5 11,476.9 11,520.9 ---------- --------------- ---------- ---------- Financial indebtedness/net equity methodology valued companies 132.0 2,220.9 2,523.7 2,523.7 ---------- --------------- ---------- ---------- Total financial indebtedness 13,662.4 13,662.4 14,000.6 14,044.6 ========== =============== ========== ========== During the month of August, the Net Financial Position of the Group, was characterized by a number of accounting adjustments: (a) EUR9.3 million as been reclassified from liquidity financial assets to fixed financial assets. It's a deposit made in the past by a South African subsidiary in order to guarantee a debt resulting from swap contract; (b) EUR34.5 million classified as accruals on financial assets due to subsidiary Parmalat Soparfi's interest have been devaluated. Excluding these adjustments, referred to the past period, the financial position is unchanged. No use has been made until now of the line of credit of EUR105.8 million provided by a pool of banks on 4 March 2004. With reference to those companies that have been consolidated in their entirety, the net financial debt with third parties is divided as follows: (in EUR millions) Situation Situation Situation Pro-Forma as at as at as at 12/31/2003 07/31/2004 08/31/2004 --------------- ---------- ---------- Companies in EA subject to proposed composition with creditors 10,055.3 10,048.6 10,088.7 Other companies in EA 56.9 41.4 54.5 Other companies 1,329.3 1,386.9 1,377.7 Financial indebtedness/Total 11,441.5 11,476.9 11,520.9 =============== ========== ========== Companies in Extraordinary Administration The net indebtedness of these companies towards third parties, incurred prior to their entry into Extraordinary Administration, should be considered as being largely short-term in nature, given the current situation of default on the covenants underlying the financial contracts the change in the indebtedness of the companies in Extraordinary Administration is substantially due to the above adjustments relating to Parmalat Soparfi. Of particular note is the increased levels of liquidity at the companies subject to proposed Composition with Creditors, this having increased from EUR24 million as at 31 December 2003 to EUR68.2 million as at 31 August 2004. Other Companies The remaining operating and financial companies not subject to the Procedure and totally consolidated, have net financial indebtedness towards third parties as at 31 December 2003 of EUR1,329.3 million and at 31 August 2004 of EUR1,377.8 million. Of this amount EUR689.7 million is represented by debt of a medium or long term nature. A number of companies, among these Portugal and South Africa, are currently in talks to renegotiate their debt in order to consolidate it. Principal Companies in Extraordinary Administration The following tables summarize the situations of the principal Italian companies in Extraordinary Administration. Parmalat Finanziaria SpA (Values in millions of Euros) Situation Situation Situation Pro-Forma as at as at as at 12/31/2003 07/31/2004 08/31/2004 --------------- ---------- ---------- Short term financial assets (140.8) (141.3) (18.6) of which: Intercompany financial credits (138.8) (138.8) (18.1) Liquid financial assets (2.0) - - Available liquidity (0.0) (2.5) (0.5) Accruals on financial assets (incl. Interco.) (0.6) - - --------------- ---------- ---------- Total short term financial assets (141.4) (141.3) (18.6) --------------- ---------- ---------- Financial debt (incl. Intercompany debt) 1,269.9 1,274.4 1,274.4 of which: Intercompany financial debt 1,007.8 1,012.4 1,012.4 Other financial debt 262.1 262.0 262.0 Accruals on financial liabilities (incl. Interco.) 4.8 4.7 4.6 --------------- ---------- ---------- Total financial liabilities 1,274.7 1,279.1 1,279.0 --------------- ---------- ---------- Financial indebtedness/ (positive fin. Position) 1,133.3 1,137.8 1,260.4 =============== ========== ========== The reduction of inter-company credits in August 2004 compared to the previous month is as a result of the subordination of the credit of EUR122.4 million of Parmalat Pacific Holding, the parent of the Group's Australian companies. The credit has therefore been recorded as fixed assets. The transaction which had taken place during the past month of February was not at that time properly represented. Parmalat SpA (Values in millions of Euros) Situation Situation Situation Pro-Forma as at as at as at 12/31/2003 07/31/2004 08/31/2004 --------------- ---------- ---------- Short term financial assets (54.3) (58.0) (57.4) of which: Intercompany financial credits (28.0) (38.3) (36.8) Liquid financial assets (19.7) - - Available liquidity (6.6) (19.7) (20.6) Accruals on financial assets (incl. Interco.) 0.0 0.0 0.0 --------------- ---------- ---------- Total short term financial assets (54.3) (58.0) (57.4) --------------- ---------- ---------- Financial debt (incl. Intercompany debt) 4,149.0 4,149.0 3,891.4 of which: Intercompany financial debt 1,266.2 1,266.2 1,013.2 Other financial debt 2,882.8 2,882.8 2,878.2 Accruals on financial liabilities (incl. Interco.) 0.0 0.0 0.0 --------------- ---------- ---------- Total financial liabilities 4,149.0 4,149.0 3,891.3 --------------- ---------- ---------- Financial indebtedness/ (positive fin. Position) 4,094.7 4,091.0 3,833.9 =============== ========== ========== Compared to the situation as at 31 July 2004, the debt figure has been adjusted to reflect the cancellation by the Supreme Court of Justice of Ontario of the transaction by which Parmalat Dairy & Bakery Inc. (Canada) had acquired BF Holdings USA Inc. (USA) and the consequent cancellation of debt towards Parmalat Dairy & Bakery Inc. (Canada) of EUR254.0 million. Eurolat SpA (Values in millions of Euros) Situation Situation Situation Pro-Forma as at as at as at 12/31/2003 07/31/2004 08/31/2004 --------------- ---------- ---------- Short term financial assets (13.6) (17.8) (19.3) of which: Intercompany financial credits 0.0 0.0 0.0 Liquid financial assets 0.0 0.0 0.0 Available liquidity (13.6) (17.8) (19.3) Accruals on financial assets (incl. Interco.) - (0.1) (0.1) --------------- ---------- ---------- Total short term financial assets (13.6) (17.9) (19.4) --------------- ---------- ---------- Financial debt (incl. Intercompany debt) 191.9 190.1 190.1 of which: Intercompany financial debt 45.8 45.8 45.8 Other financial debt 146.1 144.4 144.4 Accruals on financial liabilities (incl. Interco.) 1.5 - - --------------- ---------- ---------- Total financial liabilities 193.4 190.1 190.1 --------------- ---------- ---------- Financial indebtedness/ (positive fin. Position) 179.7 172.3 170.8 =============== ========== ========== The cash position at the end of the month of August was stronger than in the previous month as a positive result of the operations. Lactis SpA (Values in millions of Euros) Situation Situation Situation Pro-Forma as at as at as at 12/31/2003 07/31/2004 08/31/2004 --------------- ---------- ---------- Short term financial assets (0.4) (3.7) (2.5) of which: Intercompany financial credits - - - Liquid financial assets - - - Available liquidity (0.4) (3.7) (2.5) Accruals on financial assets (incl. Interco.) (0.0) (0.0) (0.0) --------------- ---------- ---------- Total short term financial assets (0.4) (3.7) (2.5) --------------- ---------- ---------- Financial debt (incl. Intercompany debt) 20.5 20.5 20.5 of which: Intercompany financial debt 8.6 8.6 8.6 Other financial debt 11.9 11.9 11.9 Accruals on financial liabilities (incl. Interco.) 0.0 0.0 - --------------- ---------- ---------- Total financial liabilities 20.5 20.5 20.5 --------------- ---------- ---------- Financial indebtedness/ (positive fin. Position) 20.2 16.8 18.0 =============== ========== ========== Compared to the previous month available liquidity fell from EUR3.7 million to EUR2.5 million. Significant Events during August and September 6 August Request to the Court of Parma that UBS Limited be subject to a claw-back action following bankruptcy for an amount of EUR290 million plus interest. 9 August Request to the Court of Parma that Deutsche Bank SpA be subject to a Clawback action following bankruptcy for an amount of EUR17 million plus interest. 10 August Publication on a number of European daily newspapers of the decrees of the delegated Judge dated 3 August 2004 and 6 August 2004 relative to the proposed Composition with Creditors and the summary Restructuring Plan for the Parmalat Group. The relevant press release was not distributed into the United States of America or other restricted territories. 11 August Notification to bond holders of the procedure to unblock their securities. As a consequence of this holders of such bonds are able to trade their securities. 13 August Approval by the local court in Brazil of the request for protection from creditors of Parmalat Brasile and Parmalat Partecipacoes as presented by Felsberg & Associates. 17 August Publication of a Notice relating to the registration as credits of Private Placements. This Notice makes clear that holders of Private Placements are required to request inclusion amongst the issuing company's creditors in order to have their status as creditors confirmed. 18 August The filing by the Extraordinary Commissioner of a complaint with the Circuit Court of Cook County in the State of Illinois requesting that the former external auditors of Parmalat, Grant Thornton International and Deloitte Touche Tohmatsu and their U.S. and Italian subsidiaries be required to pay damages relating to a series of accusations. The Extraordinary Commissioner asserts that the former external auditors played an absolutely central role in the causing of damages that overcame the Parmalat Group and in relation to this is requesting that the firms in question be condemned to pay damages of no less than US$10 billion. 19 August Request to the Court of Parma that Credit Suisse First Boston International be subject to a claw-back action following bankruptcy for an amount of EUR248.3 million plus interest. 10 September Invitations to tender to acquire buildings belonging to Eurolat SpA in Extraordinary Administration, located in the district of Lodi, Montanaso Lombardo and Tavazzano con Villavesco. 18 September Publication of a guide to the submission of comments on the list of creditors drawn up by the Extraordinary Commissioner and how eventual responses to such comments will be made. 21 September Approval of the project for an Offer and Listing of shares and warrants in Parmalat SpA (Assumptor) on the Mercato Telematico Azionario of the Borsa Italiana. PILLOWTEX CORP: August 2004 Cash Receipts & Disbursements Report ---------------------------------------------------------------- Pillowtex, et al. Actual Cash Flow For the Month of August 2004 Accounts Receivable Collections $1,093,000 Brown & Joseph/Atwell Fees (13,000) Accounts Receivable Personnel (16,000) Inventory Bulk Sales 4,000 Property Tax Related to Asset Sale - Property (Net) (51,000) Miscellaneous Proceeds 8,000 ---------- Total Proceeds 1,025,000 Prepetition Cure Cost of Capital Leases - Balance of 2003 Personal Property Tax - Alliance Street Production - Interest Expense (Term and Revolver) - Idle Facility Cost 378,000 Electric Demand Charge - Retail Store Operating Costs - Warehousing, Shipping & Billing - Freight & Duty - Manufacturing - Inventory Cleanup - Accrued Employee Expenses - Critical Vendor Payments - Continuing Medical - Terminated Medical - Workers' Compensation/Other Insurance 26,000 Corporate 89,000 Severance/Retention 144,000 Warehouse Vacation Pay - SB Capital Estate Charge Back - Early Termination Fee - DIP Fees - Professional Fees 263,000 Miscellaneous Expenses 107,000 ---------- Total Expenses 1,007,000 ---------- Net Cash Flow $18,000 ========== Pillowtex, et al. Disbursement Report For the Month of August 2004 Net Payroll & Payroll Taxes Paid $318,511 Sales, Use & Other Taxes Paid - Inventory Purchases - Interest on Long Term Debt - Secured/Rental/Lease - Utilities 7,187 Insurance 26,336 Administrative - Professional Fees 292,210 U.S. Trustee's Fees 14,250 Others 107,574 ----------- Total for U.S. Trustee Fees $766,068 =========== Headquartered in Dallas, Texas, Pillowtex Corporation -- http://www.pillowtex.com/-- sold top-of-the-bed products to virtually every major retailer in the U.S. and Canada. The Company filed for Chapter 11 protection on November 14, 2000 (Bankr. Del. Case No. 00-4211), emerged from bankruptcy under a chapter 11 plan, and filed a second time on July 30, 2003 (Bankr. Del. Case No. 03-12339). The second chapter 11 filing triggered sales of substantially all of the Company's assets. David G. Heiman, Esq., at Jones Day, and William H. Sudell, Jr., Esq., at Morris Nichols Arsht & Tunnel, represent the Debtors. On July 30, 2003, the Company listed $548,003,000 in assets and $475,859,000 in debts. (Pillowtex Bankruptcy News, Issue No. 70; Bankruptcy Creditors' Service, Inc., 215/945-7000) SOLUTIA INC: Posts $15 Million Net Loss for August 2004 ------------------------------------------------------- Solutia Chapter 11 Debtors Unaudited Statement of Consolidated Financial Position As of August 31, 2004 ASSETS Current Assets: Cash $39,000,000 Trade Receivables, net 197,000,000 Account Receivables-Unconsolidated subsidiaries 51,000,000 Inventories 161,000,000 Other Current Assets 78,000,000 -------------- Total Current Assets 526,000,000 Property, Plant and Equipment, net 713,000,000 Investments in Affiliates 98,000,000 Intangible Assets, net 102,000,000 Other Assets 146,000,000 -------------- TOTAL ASSETS $1,985,000,000 ============== LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities Accounts Payable $140,000,000 Other Current Liabilities 158,000,000 -------------- Total Current Liabilities 298,000,000 Long-Term Debt 343,000,000 Other Long-Term Liabilities 234,000,000 -------------- Total Liabilities Not Subject to Compromise 875,000,000 Liabilities Subject to Compromise 2,289,000,000 Shareholders' Deficit (1,179,000,000) -------------- TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $1,985,000,000 ============== Solutia Chapter 11 Debtors Unaudited Consolidated Statement of Operations For the Month Ended August 31, 2004 Total Net Sales $200,000,000 Total Cost Of Goods Sold 183,000,000 -------------- Gross Profit 17,000,000 Total MAT Expense 17,000,000 -------------- Operating Loss - Equity Loss from Affiliates (8,000,000) Interest Expense, net (5,000,000) Other Income, net 2,000,000 Reorganization Items: Professional fees (4,000,000) -------------- Loss Before Taxes (15,000,000) Income Taxes - -------------- NET LOSS ($15,000,000) ============== Headquartered in St. Louis, Missouri, Solutia, Inc. -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. The Company filed for chapter 11 protection on December 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. (Solutia Bankruptcy News, Issue No. 24; Bankruptcy Creditors' Service, Inc., 215/945-7000) TRENWICK GROUP: Posts $4,867,784 Net Loss in August 2004 -------------------------------------------------------- On September 20, 2004, Trenwick America Corporation, Trenwick Group Ltd. (in provisional liquidation) and LaSalle Re Holdings Limited (in provisional liquidation) filed monthly operating reports for the month ended August 31, 2004, and the period from August 20, 2003 to August 31, 2004, with the United States Bankruptcy Court for the District of Delaware. Trenwick Group Ltd. (Bankr. D. Del. Case No. 03-12636), reports a $4,867,784 net loss for the month ended August 2004, and a cumulative $93,747,579 loss for the period from August 20, 2003 to August 31, 2004. A full-text copy of Trenwick Group Ltd.'s August 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1122211/000116923204005083/d60865_ex99-1.txt Trenwick America Corporation (Bankr. D. Del. Case No. 03-12635) reports a $5,358,087 net loss in August 2004 and a cumulative $66,128,209 loss during the course of its chapter 11 restructuring. A full-text copy of Trenwick America's August 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1127783/000116923204005084/d60866_ex99-1.txt LaSalle Re Holdings Limited (Bankr. D. Del. Case No. 03-12637) reports a $659,337 net profit in August 2004 and a cumulative $6,034,407 post-petition loss. A full-text copy of LaSalle's August 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1001384/000116923204005085/d60867_ex99-1.txt On August 20, 2003, TGL and LaSalle Re Holdings Limited (in provisional liquidation) filed insolvency proceedings in the Supreme Court of Bermuda. On August 22, 2003, the Bermuda Court granted an order appointing Michael Morrison and John Wardrop, partners of KPMG in Bermuda and KPMG LLP in the United Kingdom, respectfully, as Joint Provisional Liquidators in respect of TGL and LaSalle. The Bermuda Court granted the JPLs the power to oversee the continuation and reorganization of these companies' businesses under the control of their boards of directors and under the supervision of the Bankruptcy Court and the Bermuda Court. The JPLs have not audited the contents of this report. WESTPOINT STEVENS: Reports $9.1 Million Net Loss in August 2004 --------------------------------------------------------------- WESTPOINT STEVENS, INC. Balance Sheet At August 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents $2,579 Short-term investments - Accounts receivable, net 256,081 Inventories 347,197 Prepaid expenses and other current assets 17,608 ---------- Total current assets 623,465 Total investments and other assets 120,046 Goodwill - Property, Plant and Equipment, net 567,615 ---------- TOTAL ASSETS $1,313,126 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise: Senior Credit Facility $439,656 DIP Credit Agreement 133,137 Second lien facility 165,000 Accrued interest payable 6,325 Accounts payable - trade 54,571 Accounts payable - intercompany 165,867 Other accrued liabilities 110,222 Deferred income taxes 4,431 Pension and other liabilities 144,297 ---------- Total liabilities not subject to compromise 1,223,506 Liabilities Subject to Compromise Senior notes 1,000,000 Deferred financing fees (5,486) Accrued interest payable on Senior Notes 36,130 Accounts payable 27,136 Other payables and accrued liabilities 8,238 Pension and other liabilities 18,844 ---------- Total liabilities not subject to compromise 1,084,862 ---------- Total Liabilities 2,308,368 Shareholders' Equity (Deficit) Equity of subsidiaries (123,757) Common stock 711 Capital surplus/Treasury Stock 51,436 Retained earnings (deficit) (812,265) Minimum pension liability adjustment (101,921) Other adjustments (9,446) Unearned compensation - ---------- Stockholders' Equity (Deficit) (995,242) ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $1,313,126 ========== WESTPOINT STEVENS, INC. Statement of Operations Month Ended August 31, 2004 (in thousands) Total sales $133,763 Cost of sales 121,357 ---------- Gross profit 12,406 Selling and administrative expenses Selling expenses 3,895 Warehousing and shipping 5,927 Advertising 410 Division administrative expense 936 MIS expense 1,508 Corporate administrative expense 1,291 ---------- Total selling and administrative expense 13,967 Restructuring and impairment charge - Goodwill impairment charge - ---------- Profit (loss) from operations (1,561) Interest expense Interest expense - outside 6,134 Capitalized interest expense - Interest expense - intercompany 292 Interest income - Interest income - intercompany - ---------- Net interest expense 6,426 Other expense Miscellaneous 1,116 Royalties - intercompany 3,700 Transaction gain/loss - ---------- Total other expense 4,816 Other income Royalties - intercompany - Dividends - Sale of assets (8) Miscellaneous 2 ---------- Total other income (6) ---------- Net other expense 4,822 ---------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items (12,809) Chapter 11 reorganization expenses 1,886 Income tax expense (benefit) (5,534) Extraordinary item - net of taxes - ---------- Net Income (loss) ($9,161) ========== WESTPOINT STEVENS, INC. Statement of Cash Flows Month Ended August 31, 2004 (in thousands) Cash flows from operations: Net income (loss) ($9,161) Restructuring - Equity adjustments 5,793 Depreciation and amortization expense 4,131 Gain on sale of assets - Working Capital Changes Decrease/(increase) - accounts receivable (25,616) Decrease/(increase) - inventories 15,644 Decrease/(increase) - other current assets 1,168 Decrease/(increase) - other non-current assets & debts 1,313 Increase/(decrease) - accounts payable (trade) 2,659 Increase/(decrease) - a/p (intercompany) 9,647 Increase/(decrease) - accrued liabilities 1,217 Increase/(decrease) - accrued interest payable 5,426 Increase/(decrease) - pension and other liabilities 1,463 Increase/(decrease) - deferred federal income tax 175 ---------- Total cash flows from operations 13,859 Cash flows from investing activities: Capital expenditures (1,250) Transfers - Net proceeds from sale of assets 50 ---------- Total cash flows from investing (1,200) Cash flows from financing activities: Increase/(decrease)- DIP Credit Agreement (15,499) ---------- Total cash flows from financing (15,499) Beginning cash balance 5,419 Change in cash (2,840) ---------- Ending cash balance $2,579 ========== WESTPOINT STEVENS: WP Stevens I August 2004 Monthly Report ---------------------------------------------------------- WESTPOINT STEVENS, INC., I Balance Sheet At August 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents $240 Accounts receivable - intercompany 11,631 Inventories 11,893 Prepaid expenses and other current assets (370) ---------- Total current assets 23,394 Total investments and other assets 124,052 Property, Plant and Equipment, net 12,366 Goodwill - ---------- TOTAL ASSETS $159,812 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Senior Credit Facility - DIP Credit Agreement - Long-term debt classified as current - Accrued interest payable - Accounts payable - trade $1,207 Accounts payable - intercompany - Other accrued liabilities 13,402 Deferred income taxes - Pension and other liabilities - ---------- Total Liabilities Not Subject to Compromise 14,609 Liabilities Subject to Compromise Senior notes - Deferred financing fees - Accrued interest payable on Senior Notes - Accounts payable 1,400 Other payables and accrued liabilities - Pension and other liabilities - ---------- Total Liabilities Subject to Compromise 1,400 ---------- Total liabilities 16,009 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 1 Capital surplus/Treasury Stock 70,559 Retained earnings (deficit) 73,243 Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Shareholders' Equity (Deficit) 143,803 ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $159,812 ========== WESTPOINT STEVENS, INC., I Statement of Operations Month Ended August 31, 2004 (in thousands) Net sales $8,681 Cost of goods sold 5,693 ---------- Gross earnings 2,988 Selling and administrative expenses Selling expenses 2 Warehousing and shipping 214 Advertising - Division administrative expense - MIS expense - Corporate administrative expense 170 ---------- Total selling and administrative expense 386 Restructuring and impairment charge - Goodwill impairment charge - ---------- Operating earnings (loss) 2,602 Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany - Interest income - Interest income - intercompany 360 ---------- Net interest expense (360) Other expense Miscellaneous - Royalties - intercompany 190 Transaction gain/loss - ---------- Total other expense 190 Other income Royalties - intercompany 3,771 Dividends - Sale of assets - Miscellaneous - ---------- Total other income 3,771 ---------- Net other expense (3,581) ---------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items 6,543 Chapter 11 reorganization expenses - Income tax expense (benefit) 2,294 Extraordinary item - net of taxes - ---------- Net Income (loss) $4,249 ========== WESTPOINT STEVENS, INC., I Statement of Cash Flows Month Ended August 31, 2004 (in thousands) Cash flows from operations: Net income (loss) $4,249 Non-cash items Depreciation and amortization 112 Working Capital Changes Decrease/(increase) - a/r (customers) - Decrease/(increase) - a/r (intercompany) (8,851) Decrease/(increase) - inventories 1,189 Decrease/(increase) - other current assets 370 Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) 187 Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities 2,833 Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - ---------- Total cash flows from operations 89 Cash flows from investing activities: Capital expenditures (19) Transfers - Net proceeds from sale of assets - ---------- Total cash flows from investing (19) Cash flows from financing activities: Increase/(decrease)- DIP Credit Agreement - ---------- Total cash flows from financing - Beginning cash balance 170 Change in cash 70 ---------- Ending cash balance $240 ========== WESTPOINT STEVENS: JP Stevens August 2004 Monthly Operating Report ------------------------------------------------------------------ J.P. STEVENS & CO., INC. Balance Sheet At August 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents - Accounts receivable - intercompany $110,749 Prepaid expenses and other current assets - ---------- Total current assets 110,749 Total investments & other assets 2,697 Goodwill - ---------- TOTAL ASSETS $113,446 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Accounts payable - intercompany - Other accrued liabilities - Deferred income taxes - Pension and other liabilities - ---------- Total Liabilities Not Subject to Compromise - Liabilities Subject to Compromise - Shareholders' Equity (Deficit) Equity of subsidiaries $10,503 Common stock - Capital surplus/Treasury Stock - Retained earnings (deficit) 102,943 Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Stockholders' Equity (Deficit) 113,446 ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $113,446 ========== J.P. Stevens & Co., Inc., reports no income and cash flow for August 2004. WESTPOINT STEVENS: JP Stevens Enterprises' August Monthly Report ---------------------------------------------------------------- J.P. STEVENS ENTERPRISES, INC. Balance Sheet At August 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents $26 Accounts receivable - intercompany 16,581 Prepaid expenses and other current assets - ---------- Total current assets 16,607 Total investments & other assets - Goodwill - ---------- TOTAL ASSETS $16,607 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise: Accounts payable - intercompany - Other accrued liabilities $358 Deferred income taxes - Pension and other liabilities - ---------- Total Liabilities Not Subject to Compromise 358 Liabilities Subject to Compromise - ---------- Total liabilities 358 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 2 Capital surplus/Treasury Stock - Retained earnings (deficit) 16,247 Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Stockholders' Equity (Deficit) 16,249 ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $16,607 ========== J.P. STEVENS ENTERPRISES, INC. Statement of Operations Month Ended August 31, 2004 (in thousands) Net sales - Cost of goods sold - ---------- Gross earnings - Selling and administrative expenses Selling expenses - Warehousing and shipping - Advertising - Division administrative expense - MIS expense - Corporate administrative expense - ---------- Total selling and administrative expense - Restructuring and impairment charge - Goodwill impairment charge - ---------- Operating earnings (loss) - Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany - Interest income - Interest income - intercompany 64 ---------- Net interest expense (64) Other expense Miscellaneous - Royalties - intercompany - Transaction gain/loss - ---------- Total other expense - Other income Royalties - intercompany 200 Dividends - Sale of assets - Miscellaneous - ---------- Total other income 200 ---------- Net other expense (200) ---------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items 264 Chapter 11 reorganization expenses - Income tax expense (benefit) 92 Extraordinary item - net of taxes - ---------- Net Income (loss) $172 ========== J.P. STEVENS ENTERPRISES, INC. Statement of Cash Flows Month Ended August 31, 2004 (in thousands) Cash flows from operations: Net income (loss) $172 Non-cash items Depreciation and amortization - Working Capital Changes Decrease/(increase) - a/r (intercompany) (255) Decrease/(increase) - inventories - Decrease/(increase) - other current assets - Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) - Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities 92 Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - ---------- Total cash flows from operations (9) Cash flows from investing activities Capital expenditures - Net proceeds from sale of assets - ---------- Total cash flows from investing - Cash flows from financing activities Increase/(decrease)- DIP Credit Agreement - ---------- Total cash flows from financing - Beginning cash balance 17 Change in cash 9 ---------- Ending cash balance $26 ========== WESTPOINT STEVENS: WP Stevens Stores' August 2004 Monthly Report ---------------------------------------------------------------- WESTPOINT STEVENS STORES, INC. Balance Sheet At August 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents $1,601 Accounts receivable - customers 201 Accounts receivable - intercompany 5,909 Total Inventories 20,042 Prepaid expenses and other current assets 855 ---------- Total current assets 28,608 Total investments & other assets - Goodwill - Property, plant and equipment, net 2,427 ---------- TOTAL ASSETS $31,035 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Accounts payable - trade $402 Accounts payable -intercompany - Other accrued liabilities 5,019 Deferred income taxes - Pension and other liabilities - ---------- Total Liabilities Not Subject to Compromise 5,421 ---------- Liabilities Subject to Compromise Accounts payable 1,674 ---------- Total liabilities 7,095 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 1 Capital surplus/Treasury Stock 15,955 Retained earnings (deficit) 7,984 Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Stockholders' Equity (Deficit) 23,940 ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $31,035 ========== WESTPOINT STEVENS STORES, INC. Statement of Operations Month Ended August 31, 2004 (in thousands) Net sales $6,912 Cost of goods sold 4,139 ---------- Gross earnings 2,773 Selling and administrative expenses Selling expenses 2,077 Warehousing and shipping 193 Advertising 234 Division administrative expense 304 MIS expense 55 Corporate administrative expense 83 ---------- Total selling and administrative expense 2,946 Restructuring and impairment charge - Goodwill impairment charge - ---------- Operating earnings (loss) (173) Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany 154 Interest income - Interest income - intercompany - ---------- Net interest expense 154 Other expense Miscellaneous - Royalties - intercompany - Transaction gain/loss - ---------- Total other expense - Other income Royalties Intercompany - Dividends - Sale of assets - Miscellaneous - ---------- Total other income - ---------- Net other expense - ---------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items (327) Chapter 11 reorganization expenses - Income tax expense (benefit) (113) Extraordinary item - net of taxes - ---------- Net Income (loss) ($214) ========== WESTPOINT STEVENS STORES, INC. Statement of Cash Flows Month Ended August 31, 2004 (in thousands) Cash flows from operations: Net income (loss) ($214) Non-cash items Depreciation and amortization 54 Gain on sale of assets - Working Capital Changes Decrease/(increase) - a/r (customers) (7) Decrease/(increase) - a/r (intercompany) (695) Decrease/(increase) - inventories 370 Decrease/(increase) - other current assets (75) Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) (72) Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities 303 Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - ---------- Total cash flows from operations (336) Cash flows from investing activities Capital expenditures (36) Transfers - Net proceeds from sale of assets - ---------- Total cash flows from investing (36) Cash flows from financing activities Increase/(decrease)- DIP Credit Agreement - ---------- Total cash flows from financing - Beginning cash balance 1,973 Change in cash (372) ---------- Ending cash balance $1,601 ========== ********* 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. 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For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L. Metzler, Emi Rose S.R. Parcon, Rizande B. Delos Santos, Jazel P. Laureno, Cherry Soriano-Baaclo, Marjorie Sabijon, Terence Patrick F. Casquejo and Peter A. Chapman, Editors. Copyright 2004. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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