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.  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
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related conferences are encouraged. Send announcements to
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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.

This material is copyrighted and any commercial use, resale or
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herein is obtained from sources believed to be reliable, but is
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                    *** End of Transmission ***