/raid1/www/Hosts/bankrupt/TCR_Public/041023.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 23, 2004, Vol. 8, No. 231

                          Headlines

COVANTA TAMPA: Reports $151,488 Net Income in March 2004
COVANTA TAMPA: Reports $131,821 Net Loss in April 2004
COVANTA TAMPA: Reports $165,842 Net Loss in May 2004
COVANTA TAMPA: Reports $187,725 Net Loss in June 2004
COVANTA TAMPA: Reports $165,745 Net Loss in July 2004

COVANTA WTE: Reports $995,146 Net Loss in March 2004
COVANTA WTE: Reports $227,946 Net Income in April 2004
COVANTA WTE: Posts $748,407 Net Income for May 2004
COVANTA WTE: Reports $240,726 Net Income in June 2004
COVANTA WTE: Reports $545,909 Net Income in July 2004

ENRON CORP: Releases May 2004 Monthly Operating Report
FGI GROUP: Files September 2004 Monthly Operating Report
RCN CORP: Posts $26.6 Million Net Loss for August 2004
RELIANCE GROUP: Reports $586,000 Net Loss in September 2004
UNIVERSAL ACCESS: Files September 2004 Monthly Operating Report

                          *********

COVANTA TAMPA: Reports $151,488 Net Income in March 2004
--------------------------------------------------------

                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                     Consolidated Balance Sheet
                        As of March 31, 2004

                               ASSETS

Cash                                                   ($19,146)
Inventory                                                     -
Account receivable                                    3,451,253
Machinery, fixtures and equipment                         3,301
Restricted funds                                              -
Other current assets                                      3,032
Other assets                                                  -
                                                    -----------
Total assets                                         $3,438,440
                                                    ===========

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $14,433,260
Accounts payable and other liabilities                  208,359
                                                    -----------
Total postpetition liabilities                       14,641,619

Prepetition Liabilities:
Project Debt                                                  -
Advances from parent and affiliates                  12,672,565
Billings in excess                                            -
Liabilities Subject to Compromise                     2,605,077
Taxes/Others                                                  -
                                                    -----------
Total Prepetition Liabilities                        15,277,642
                                                    -----------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                               -
Retained earnings - prepetition                     (16,306,346)
Retained earnings - postpetition                    (10,174,475)
                                                    -----------
Total Shareholders' Equity                          (26,480,821)
                                                    -----------
Total Liabilities and Shareholders' Equity           $3,438,440
                                                    ===========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
               Consolidated Statements of Operations
                   From March 1 to March 31, 2004

INCOME:
Service and construction revenue                       $479,267
                                                     ----------
           Total Income                                 479,267

EXPENSES:
Operating and construction costs                        297,968
Depreciation and amortization expense                       220
Other - Net                                                   -
Cost allocation from parent & affiliates                 29,591
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                               327,779
                                                     ----------
NET OPERATING PROFIT                                    151,488

Non-Operating Income:
Reorganization costs                                          -
Interest expense                                              -
                                                     ----------
Total Non-Operating Income (Loss)                             -
Income Taxes                                                  -
                                                     ----------
NET INCOME                                             $151,488
                                                     ==========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                 Consolidated Cash Flow Statements
                   From March 1 to March 31, 2004

Net income                                             $151,488
Depreciation and amortization                               220
Receivables                                            (479,268)
Other assets                                                  -
Payables and accrued expenses                            32,111
Other liabilities                                      (107,326)
Property, plant and equipment expenditures                    -
Advances from parents & affiliates                      501,021
                                                     ----------
                                                         98,246

Cash, beginning balance                                (117,392)
                                                     ----------
Cash, ending balance                                   ($19,146)
                                                     ==========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA TAMPA: Reports $131,821 Net Loss in April 2004
------------------------------------------------------

                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                        As of April 30, 2004

                               ASSETS

Cash                                                   $107,990
Inventory                                                     -
Account receivable                                    3,296,554
Land                                                          -
Machinery, fixtures and equipment                         3,081
Restricted funds                                              -
Other current assets                                      3,032
Other assets                                                  -
                                                    -----------
Total assets                                         $3,410,657
                                                    ===========

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $14,609,605
Accounts payable and other liabilities                  329,545
                                                    -----------
Total postpetition liabilities                       14,939,150

Prepetition Liabilities:
Project Debt                                                  -
Advances from parent and affiliates                  12,672,565
Billings in excess                                            -
Liabilities Subject to Compromise                     2,411,584
Taxes/Others                                                  -
                                                    -----------
Total Prepetition Liabilities                        15,084,149
                                                    -----------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                               -
Retained earnings - prepetition                     (16,306,346)
Retained earnings - postpetition                    (10,306,296)
                                                    -----------
Total Shareholders' Equity                          (26,612,642)
                                                    -----------
Total Liabilities and Shareholders' Equity           $3,410,657
                                                    ===========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
               Consolidated Statements of Operations
                   From April 1 to April 30, 2004

INCOME:
Service and construction revenue                       $250,000
                                                     ----------
           Total Income                                 250,000

EXPENSES:
Operating and construction costs                        351,601
Depreciation and amortization expense                       220
Other - Net                                                   -
Cost allocation from parent & affiliates                 30,000
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                               381,821
                                                     ----------
NET OPERATING PROFIT/(LOSS)                            (131,821)

Non-Operating Income:
Reorganization costs                                          -
Interest expense                                              -
                                                     ----------
Total Non-Operating Income (Loss)                             -
Income Taxes                                                  -
                                                     ----------
NET INCOME (NET LOSS)                                 ($131,821)
                                                     ==========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                 Consolidated Cash Flow Statements
                   From April 1 to April 30, 2004

Net income                                            ($131,821)
Depreciation and amortization                               220
Receivables                                             154,699
Other assets                                                  -
Payables and accrued expenses                           121,186
Other liabilities                                      (193,493)
Property, plant and equipment expenditures                    -
Advances from parents & affiliates                      176,345
                                                     ----------
                                                        127,138

Cash, beginning balance                                 (19,146)
                                                     ----------
Cash, ending balance                                   $107,990
                                                     ==========


Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA TAMPA: Reports $165,842 Net Loss in May 2004
----------------------------------------------------

                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                     Consolidated Balance Sheet
                         As of May 31, 2004

                               ASSETS

Cash                                                   $247,222
Inventory                                                     -
Account receivable                                    3,271,554
Land                                                          -
Machinery, fixtures and equipment                         2,861
Restricted funds                                              -
Other current assets                                      3,032
Other assets                                                  -
                                                    -----------
Total assets                                         $3,524,669
                                                    ===========

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $14,736,075
Accounts payable and other liabilities                  102,013
                                                    -----------
Total postpetition liabilities                       14,838,088

Prepetition Liabilities:
Project Debt                                                  -
Advances from parent and affiliates                  12,672,565
Billings in excess                                            -
Liabilities Subject to Compromise                     2,792,500
Taxes/Others                                                  -
                                                    -----------
Total Prepetition Liabilities                        15,465,065
                                                    -----------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                               -
Retained earnings - prepetition                     (16,306,346)
Retained earnings - postpetition                    (10,472,138)
                                                    -----------
Total Shareholders' Equity                          (26,778,484)
                                                    -----------
Total Liabilities and Shareholders' Equity           $3,524,669
                                                    ===========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
               Consolidated Statements of Operations
                     From May 1 To May 31, 2004

INCOME:
Service and construction revenue                       $218,044
                                                     ----------
           Total Income                                 218,044

EXPENSES:
Operating and construction costs                        353,666
Depreciation and amortization expense                       220
Other - Net                                                   -
Cost allocation from parent & affiliates                 30,000
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                               383,886
                                                     ----------
NET OPERATING PROFIT/(LOSS)                            (165,842)

Non-Operating Income:
Reorganization costs                                          -
Interest expense                                              -
                                                     ----------
Total Non-Operating Income (Loss)                             -
Income Taxes                                                  -
                                                     ----------
NET INCOME (NET LOSS)                                 ($165,842)
                                                     ==========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                 Consolidated Cash Flow Statements
                     From May 1 To May 31, 2004

Net income                                            ($165,842)
Depreciation and amortization                               220
Receivables                                              25,000
Other assets                                                  -
Payables and accrued expenses                          (227,532)
Other liabilities                                       380,916
Property, plant and equipment expenditures                    -
Advances from parents & affiliates                      126,470
                                                     ----------
                                                        139,232

Cash, beginning balance                                 107,990
                                                     ----------
Cash, ending balance                                   $247,222
                                                     ==========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA TAMPA: Reports $187,725 Net Loss in June 2004
-----------------------------------------------------

                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                     Consolidated Balance Sheet
                         As of June 30, 2004

                               ASSETS

Cash                                                   $388,213
Inventory                                                     -
Account receivable                                    3,346,554
Land                                                          -
Machinery, fixtures and equipment                         2,641
Restricted funds                                              -
Other current assets                                      3,032
Other assets                                                  -
                                                    -----------
Total assets                                         $3,740,440
                                                    ===========

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $14,940,039
Accounts payable and other liabilities                  301,545
                                                    -----------
Total postpetition liabilities                       15,241,584

Prepetition Liabilities:
Project Debt                                                  -
Advances from parent and affiliates                  12,672,565
Billings in excess                                            -
Liabilities Subject to Compromise                     2,792,500
Taxes/Others                                                  -
                                                    -----------
Total Prepetition Liabilities                        15,465,065
                                                    -----------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                               -
Retained earnings - prepetition                     (16,306,346)
Retained earnings - postpetition                    (10,659,863)
                                                    -----------
Total Shareholders' Equity                          (26,966,209)
                                                    -----------
Total Liabilities and Shareholders' Equity           $3,740,440
                                                    ===========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
               Consolidated Statements of Operations
                    From June 1 to June 30, 2004

INCOME:
Service and construction revenue                       $320,610
                                                     ----------
           Total Income                                 320,610

EXPENSES:
Operating and construction costs                        478,115
Depreciation and amortization expense                       220
Other - Net                                                   -
Cost allocation from parent & affiliates                 30,000
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                               508,335
                                                     ----------
NET OPERATING PROFIT/(LOSS)                            (187,725)

Non-Operating Income:
Reorganization costs                                          -
Interest expense                                              -
                                                     ----------
Total Non-Operating Income (Loss)                             -
Income Taxes                                                  -
                                                     ----------
NET INCOME (NET LOSS)                                 ($187,725)
                                                     ==========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                Consolidated Cash Flow Statements
                    From June 1 to June 30, 2004

Net income                                            ($187,725)
Depreciation and amortization                               220
Receivables                                             (75,000)
Other assets                                                  -
Payables and accrued expenses                           199,532
Other liabilities                                             -
Property, plant and equipment expenditures                    -
Advances from parents & affiliates                      203,964
                                                     ----------
                                                        140,991

Cash, beginning balance                                 247,222
                                                     ----------
Cash, ending balance                                   $388,213
                                                     ==========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA TAMPA: Reports $165,745 Net Loss in July 2004
-----------------------------------------------------

                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                     Consolidated Balance Sheet
                        As of July 31, 2004

                               ASSETS

Cash                                                     $4,944
Inventory                                                     -
Account receivable                                    3,421,554
Land                                                          -
Machinery, fixtures and equipment                         2,421
Restricted funds                                              -
Other current assets                                      3,032
Other assets                                                  -
                                                    -----------
Total assets                                         $3,431,951
                                                    ===========

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $14,754,550
Accounts payable and other liabilities                  738,589
                                                    -----------
Total postpetition liabilities                       15,493,139

Prepetition Liabilities:
Project Debt                                                  -
Advances from parent and affiliates                  12,672,565
Billings in excess                                            -
Liabilities Subject to Compromise                     2,398,200
Taxes/Others                                                  -
                                                    -----------
Total Prepetition Liabilities                        15,070,765
                                                    -----------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                               -
Retained earnings - prepetition                     (16,306,346)
Retained earnings - postpetition                    (10,825,607)
                                                    -----------
Total Shareholders' Equity                          (27,131,953)
                                                    -----------
Total Liabilities and Shareholders' Equity           $3,431,951
                                                    ===========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
               Consolidated Statements of Operations
                    From July 1 to July 31, 2004

INCOME:
Service and construction revenue                       $327,582
                                                     ----------
            Total Income                                327,582

EXPENSES:
Operating and construction costs                        463,107
Depreciation and amortization expense                       220
Other - Net                                                   -
Cost allocation from parent & affiliates                 30,000
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                               493,327
                                                     ----------
NET OPERATING PROFIT/(LOSS)                            (165,745)

Non-Operating Income:
Reorganization costs                                          -
Interest expense                                              -
                                                     ----------
Total Non-Operating Income (Loss)                             -
Income Taxes                                                  -
                                                     ----------
NET INCOME (NET LOSS)                                 ($165,745)
                                                     ==========


                    Covanta Tampa Bay, Inc., and
                  Covanta Tampa Construction, Inc.
                 Consolidated Cash Flow Statements
                    From July 1 to July 31, 2004

Net income                                            ($165,745)
Depreciation and amortization                               220
Receivables                                             (75,000)
Other assets                                                  -
Payables and accrued expenses                           437,044
Other liabilities                                      (394,300)
Property, plant and equipment expenditures                    -
Advances from parents & affiliates                     (185,488)
                                                     ----------
                                                       (383,269)

Cash, beginning balance                                 388,213
                                                     ----------
Cash, ending balance                                     $4,944
                                                     ==========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA WTE: Reports $995,146 Net Loss in March 2004
----------------------------------------------------
The WTE Debtors are:

    -- Covanta Warren Energy Resource Co., L.P.,
    -- Covanta Warren Holdings I, Inc.,
    -- Covanta Warren Holdings II, Inc., and
    -- Covanta Lake II, Inc.

                            WTE Debtors
                     Consolidated Balance Sheet
                        As of March 31, 2004

                               ASSETS

Cash                                                 $1,220,234
Inventory                                                     -
Accounts receivable                                  37,249,496
Land                                                          -
Machinery, fixtures and equipment                    98,649,116
Restricted funds                                     13,304,061
Other current assets                                    173,322
Other assets                                          3,560,637
                                                  -------------
Total assets                                       $154,156,866
                                                  =============

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $16,134,163
Accounts payable and other liabilities                8,551,948
                                                    -----------
Total postpetition liabilities                       24,686,111

Prepetition Liabilities:
Project Debt                                         84,259,526
Advances from parent and affiliates                  37,185,761
Liabilities Subject to Compromise                     4,197,785
Taxes/Others                                                  -
                                                   ------------
Total Prepetition Liabilities                       125,643,072
                                                   ------------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                           5,820
Retained earnings - prepetition                      15,866,416
Retained earnings - postpetition                    (12,044,553)
                                                  -------------
Total Shareholders' Equity                            3,827,683
                                                  -------------
Total Liabilities and Shareholders' Equity         $154,156,866
                                                  =============


                            WTE Debtors
               Consolidated Statements of Operations
                  From March 1 to March 31, 2004

INCOME:
Service, electric and construction revenue           $1,753,786
Waste-to-Energy project debt revenue                  1,003,415
                                                     ----------
           Total Income                               2,757,201

EXPENSES:
Operating and construction costs                      2,478,788
Waste-to-Energy project debt expense                    430,147
Depreciation and amortization expense                   316,161
Other - Net                                                   -
Cost allocations from parent & affiliates               702,251
Gain on sale of businesses                             (175,000)
                                                     ----------
           Total Expenses                             3,752,347
                                                     ----------
NET OPERATING PROFIT/(LOSS)                            (995,146)

Non-Operating Income/(Expense)
Reorganization costs                                          -
Interest expense                                              -
                                                     ----------
Total Non-Operating Income (Expense)                          -
Income Taxes                                                  -
                                                     ----------
NET INCOME (NET LOSS)                                 ($995,146)
                                                     ==========


                            WTE Debtors
                Consolidated Cash Flow Statements
                  From March 1 to March 31, 2004

Net Income                                            ($995,146)
Depreciation and amortization                           316,161
Receivables                                           1,457,803
Other assets                                            161,777
Payables and accrued expenses                          (484,664)
Other liabilities                                       488,119
Property, plant and equipment expenditures                    -
Restricted funds, net                                  (757,583)
(Repayments) issuance of debt, net                            -
Advances from parents & affiliates                    1,214,842
                                                     ----------
                                                      1,401,309

Cash, beginning balance                                (181,075)
                                                    -----------
Cash, ending balance                                 $1,220,234
                                                    ===========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA WTE: Reports $227,946 Net Income in April 2004
------------------------------------------------------
The WTE Debtors are:

    -- Covanta Warren Energy Resource Co., L.P.,
    -- Covanta Warren Holdings I, Inc.,
    -- Covanta Warren Holdings II, Inc., and
    -- Covanta Lake II, Inc.

                            WTE Debtors
                     Consolidated Balance Sheet
                        As of April 30, 2004

                               ASSETS

Cash                                                 $2,121,101
Inventory                                                     -
Accounts receivable                                  36,913,482
Land                                                          -
Machinery, fixtures and equipment                    98,339,494
Restricted funds                                     11,930,458
Other current assets                                    148,562
Other assets                                          3,524,131
                                                  -------------
Total assets                                       $152,977,228
                                                  =============

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $17,556,672
Accounts payable and other liabilities                6,984,281
                                                   ------------
Total postpetition liabilities                       24,540,953

Prepetition Liabilities:
Project Debt                                         82,998,263
Advances from parent and affiliates                  37,185,761
Liabilities Subject to Compromise                     4,196,622
Taxes/Others                                                  -
                                                   ------------
Total Prepetition Liabilities                       124,380,646
                                                   ------------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                           5,820
Retained earnings - prepetition                      15,866,416
Retained earnings - postpetition                    (11,816,607)
                                                  -------------
Total Shareholders' Equity                            4,055,629
                                                  -------------
Total Liabilities and Shareholders' Equity         $152,977,228
                                                  =============


                            WTE Debtors
               Consolidated Statements of Operations
                  From April 1 to April 30, 2004

INCOME:
Service, electric and construction revenue           $2,264,540
Waste-to-Energy project debt revenue                  1,003,414
                                                     ----------
           Total Income                               3,267,954

EXPENSES:
Operating and construction costs                      2,097,720
Waste-to-Energy project debt expense                    429,622
Depreciation and amortization expense                   352,666
Other - Net                                                   -
Cost allocations from parent & affiliates               160,000
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                             3,040,008
                                                     ----------
NET OPERATING PROFIT/(LOSS)                             227,946

Non-Operating Income/(Expense)
Reorganization costs                                          -
Interest expense                                              -
                                                     ----------
Total Non-Operating Income (Expense)                          -
Income Taxes                                                  -
                                                     ----------
NET INCOME                                             $227,946
                                                     ==========


                            WTE Debtors
                Consolidated Cash Flow Statements
                  From April 1 to April 30, 2004

Net income                                             $227,946
Depreciation and amortization                           316,161
Receivables                                             336,014
Other assets                                             61,266
Payables and accrued expenses                        (1,567,667)
Other liabilities                                        (1,163)
Property, plant and equipment expenditures               (6,539)
Restricted funds, net                                 1,373,603
(Repayments) issuance of debt, net                   (1,261,263)
Advances from parents & affiliates                    1,422,509
                                                     ----------
                                                        900,867

Cash, beginning balance                               1,220,234
                                                    -----------
Cash, ending balance                                 $2,121,101
                                                    ===========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA WTE: Posts $748,407 Net Income for May 2004
---------------------------------------------------
The WTE Debtors are:

    -- Covanta Warren Energy Resource Co., L.P.,
    -- Covanta Warren Holdings I, Inc.,
    -- Covanta Warren Holdings II, Inc., and
    -- Covanta Lake II, Inc.

                            WTE Debtors
                     Consolidated Balance Sheet
                         As of May 31, 2004

                               ASSETS

Cash                                                 $2,329,284
Inventory                                                     -
Accounts receivable                                  38,891,573
Land                                                          -
Machinery, fixtures and equipment                    98,042,370
Restricted funds                                     11,791,528
Other current assets                                    123,801
Other assets                                          3,502,370
                                                  -------------
Total assets                                       $154,680,926
                                                  =============

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $17,494,254
Accounts payable and other liabilities                7,468,072
                                                   ------------
Total postpetition liabilities                       24,962,326

Prepetition Liabilities:
Project Debt                                         83,428,441
Advances from parent and affiliates                  37,185,761
Liabilities Subject to Compromise                     4,300,362
Taxes/Others                                                  -
                                                   ------------
Total Prepetition Liabilities                       124,914,564
                                                   ------------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                           5,820
Retained earnings - prepetition                      15,866,416
Retained earnings - postpetition                    (11,068,200)
                                                  -------------
Total Shareholders' Equity                            4,804,036
                                                  -------------
Total Liabilities and Shareholders' Equity         $154,680,926
                                                  =============


                            WTE Debtors
               Consolidated Statements of Operations
                     From May 1 to May 31, 2004

INCOME:
Service, electric and construction revenue           $1,523,854
Waste-to-Energy project debt revenue                  1,003,415
                                                     ----------
           Total Income                               2,527,269

EXPENSES:
Operating and construction costs                        911,243
Waste-to-Energy project debt expense                    369,695
Depreciation and amortization expense                   337,924
Other - Net                                                   -
Cost allocations from parent & affiliates               160,000
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                              1,778,862
                                                     ----------
NET OPERATING PROFIT/(LOSS)                             748,407

Non-Operating Income/(Expense)
Reorganization costs                                          -
Interest expense                                              -
                                                     ----------
Total Non-Operating Income (Expense)                          -
Income Taxes                                                  -
                                                     ----------
NET INCOME                                             $748,407
                                                     ==========


                            WTE Debtors
                 Consolidated Cash Flow Statements
                     From May 1 to May 31, 2004

Net income                                             $748,407
Depreciation and amortization                           316,161
Receivables                                          (1,978,091)
Other assets                                             46,522
Payables and accrued expenses                           913,969
Other liabilities                                       103,740
Property, plant and equipment expenditures              (19,037)
Restricted funds, net                                   138,930
(Repayments) issuance of debt, net                            -
Advances from parents & affiliates                      (62,418)
                                                     ----------
                                                        208,183

Cash, beginning balance                               2,121,101
                                                     ----------
Cash, ending balance                                 $2,329,284
                                                     ==========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA WTE: Reports $240,726 Net Income in June 2004
-----------------------------------------------------
The WTE Debtors are:

    -- Covanta Warren Energy Resource Co., L.P.,
    -- Covanta Warren Holdings I, Inc.,
    -- Covanta Warren Holdings II, Inc., and
    -- Covanta Lake II, Inc.

                            WTE Debtors
                     Consolidated Balance Sheet
                        As of June 30, 2004

                               ASSETS

Cash                                                 $3,431,915
Inventory                                                     -
Accounts receivable                                  35,976,596
Land                                                          -
Machinery, fixtures and equipment                    97,943,901
Restricted funds                                     12,303,242
Other current assets                                     99,041
Other assets                                          3,480,608
                                                  -------------
Total assets                                       $153,235,303
                                                  =============

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $17,133,520
Accounts payable and other liabilities                6,728,999
                                                   ------------
Total postpetition liabilities                       23,862,519

Prepetition Liabilities:
Project Debt                                         82,968,993
Advances from parent and affiliates                  37,185,761
Liabilities Subject to Compromise                     4,173,267
Taxes/Others                                                  -
                                                   ------------
Total Prepetition Liabilities                       124,328,021
                                                   ------------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                           5,820
Retained earnings - prepetition                      15,866,416
Retained earnings - postpetition                    (10,827,473)
                                                  -------------
Total Shareholders' Equity                            5,044,763
                                                  -------------
Total Liabilities and Shareholders' Equity         $153,235,303
                                                  =============


                            WTE Debtors
               Consolidated Statements of Operations
                    From June 1 to June 30, 2004

INCOME:
Service, electric and construction revenue           $1,477,482
Waste-to-Energy project debt revenue                  1,003,415
                                                     ----------
           Total Income                               2,480,897

EXPENSES:
Operating and construction costs                      1,321,892
Waste-to-Energy project debt expense                    407,137
Depreciation and amortization expense                   337,924
Other - Net                                                   -
Cost allocations from parent & affiliates               160,000
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                             2,226,953
                                                     ----------
NET OPERATING PROFIT/(LOSS)                             253,944

Non-Operating Income/(Expense)
Reorganization costs                                          -
Interest expense                                        (13,218)
                                                     ----------
Total Non-Operating Income (Expense)                    (13,218)
Income Taxes                                                  -
                                                     ----------
NET INCOME                                             $240,726
                                                     ==========


                            WTE Debtors
                  Consolidated Cash Flow Statements
                    From June 1 to June 30, 2004

Net income                                             $240,726
Depreciation and amortization                           316,161
Receivables                                           2,914,977
Other assets                                             46,522
Payables and accrued expenses                          (308,894)
Other liabilities                                      (127,095)
Property, plant and equipment expenditures             (217,692)
Restricted funds, net                                  (511,714)
(Repayments) issuance of debt, net                     (889,626)
Advances from parents & affiliates                     (360,734)
                                                     ----------
                                                      1,102,631

Cash, beginning balance                               2,329,284
                                                    -----------
Cash, ending balance                                 $3,431,915
                                                    ===========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


COVANTA WTE: Reports $545,909 Net Income in July 2004
-----------------------------------------------------
The WTE Debtors are:

    -- Covanta Warren Energy Resource Co., L.P.,
    -- Covanta Warren Holdings I, Inc.,
    -- Covanta Warren Holdings II, Inc., and
    -- Covanta Lake II, Inc.

                            WTE Debtors
                     Consolidated Balance Sheet
                        As of July 31, 2004

                               ASSETS

Cash                                                 $3,865,556
Inventory                                                     -
Accounts receivable                                  36,672,100
Land                                                          -
Machinery, fixtures and equipment                    97,590,457
Restricted funds                                     12,605,710
Other current assets                                     83,456
Other assets                                          3,458,845
                                                  -------------
Total assets                                       $154,276,124
                                                  =============

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                 $17,528,267
Accounts payable and other liabilities                6,615,389
                                                   ------------
Total postpetition liabilities                       24,143,656

Prepetition Liabilities:
Project Debt                                         83,399,171
Advances from parent and affiliates                  37,185,761
Liabilities Subject to Compromise                     3,956,865
Taxes/Others                                                  -
                                                   ------------
Total Prepetition Liabilities                       124,541,797
                                                   ------------

Shareholders' Equity:
Capital stock                                                 -
Capital surplus                                           5,820
Retained earnings - prepetition                      15,866,416
Retained earnings - postpetition                    (10,281,565)
                                                  -------------
Total Shareholders' Equity                            5,590,671
                                                  -------------
Total Liabilities and Shareholders' Equity         $154,276,124
                                                  =============


                            WTE Debtors
               Consolidated Statements of Operations
                    From July 1 to July 31, 2004

INCOME:
Service, electric and construction revenue           $1,489,487
Waste-to-Energy project debt revenue                  1,003,415
                                                     ----------
           Total Income                               2,492,902

EXPENSES:
Operating and construction costs                      1,039,717
Waste-to-Energy project debt expense                    407,149
Depreciation and amortization expense                   337,924
Other - Net                                                   -
Cost allocations from parent & affiliates               160,000
Gain on sale of businesses                                    -
                                                     ----------
           Total Expenses                             1,944,790
                                                     ----------
NET OPERATING PROFIT/(LOSS)                             548,112

Non-Operating Income/(Expense)
Reorganization costs                                          -
Interest expense                                         (2,203)
                                                     ----------
Total Non-Operating Income (Expense)                     (2,203)
Income Taxes                                                  -
                                                     ----------
NET INCOME                                             $545,909
                                                     ==========


                            WTE Debtors
                Consolidated Cash Flow Statements
                    From July 1 to July 31, 2004

Net income                                             $545,909
Depreciation and amortization                           316,161
Receivables                                            (695,504)
Other assets                                             74,630
Payables and accrued expenses                           316,568
Other liabilities                                      (216,402)
Property, plant and equipment expenditures                    -
Restricted funds, net                                  (302,468)
(Repayments) issuance of debt, net                            -
Advances from parents & affiliates                      394,747
                                                     ----------
                                                        433,641

Cash, beginning balance                               3,431,915
                                                    -----------
Cash, ending balance                                 $3,865,556
                                                    ===========

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding  
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities. (Covanta Bankruptcy News, Issue No.
67; Bankruptcy Creditors' Service, Inc., 215/945-7000)


ENRON CORP: Releases May 2004 Monthly Operating Report
------------------------------------------------------
On Oct. 14, 2004, Enron Corporation and certain other debtor-in-
possession subsidiaries of the Company filed their monthly
operating report for May 2004 with the United States Bankruptcy
Court for the Southern District of New York.

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

   http://www.sec.gov/Archives/edgar/data/1024401/000095012904007785/h19089exv99w1.txt


                         Enron Corp. et al.
                     Cash Activity Rollforward
                  For the Month Ended May 31, 2004

Beginning cash                                   $1,877,000,000

Third party receipts                                213,000,000
Third party disbursements                          (130,000,000)
Net Intercompany                                    (18,000,000)
Transfer from or to Restricted Cash                  (2,000,000)
                                                ---------------
Ending balance                                   $1,940,000,000


                         Enron Corp. et al.
                    Tax Rollforward (Non-Payroll)
                  For the Month Ended May 31, 2004

Beginning Balance                                    $21,000,000

Accruals                                             220,000,000
Intercompany                                        (213,000,000)
Payments                                                       -
                                                 ---------------
Ending Balance                                       $28,000,000


                         Enron Corp. et al.
               Receivables Rollforward - Non-Commodity
                  For the Month Ended May 31, 2004

Beginning Balance                                   $288,000,000

Billings                                               5,000,000
Payments Received                                     (2,000,000)
Other Adjustments                                      1,000,000
                                                 ---------------
Ending Balance                                      $292,000,000


                          Enron Corp. et al.
                  Commodity Receivables and Payables
          `                As of May, 2004

Receivables                                         $218,000,000
Payables                                             598,000,000


Headquartered in Houston, Texas, Enron Corporation is in the midst
of restructuring various businesses for distribution as ongoing
companies to its creditors and liquidating its remaining
operations.  Before the company agreed to be acquired, controversy
over accounting procedures had caused Enron's stock price and
credit rating to drop sharply.  The Company filed for chapter 11
protection on December 2, 2001 (Bankr. S.D.N.Y. Case No.
01-16033).  Judge Gonzalez confirmed the Company's Modified Fifth
Amended Plan on July 15, 2004, and numerous appeals followed.
Martin J. Bienenstock, Esq., and Brian S. Rosen, Esq., at Weil,
Gotshal & Manges, LLP, represent the Debtors in their
restructuring efforts.  (Enron Bankruptcy News, Issue No. 128;
Bankruptcy Creditors' Service, Inc., 15/945-7000)


FGI GROUP: Files September 2004 Monthly Operating Report
--------------------------------------------------------
On Oct. 15, 2004, FGI Group Inc. filed a monthly operating
report for Florsheim Group, Inc., et al., and its debtor-
affiliates covering the period ended Sept. 30, 2004, with the
United States Bankruptcy Court for the Northern District of
Illinois, Eastern Division.

FGI Group reports a $707,574.86 cash balance at Sept. 30, 2004,
and provides a summary of cash accounts; receipts listings;
disbursements listings; loan account; statement of aged
receivables and accounts payable aging; tax questionnaire; and
declaration.

Full-text copies of FGI Group's September 2004 Operating Reports
are available at no charge at:

   http://www.sec.gov/Archives/edgar/data/928908/000095013704008635/c88861exv99w1.txt


Florsheim Group, Inc. (OTC BB: FLSC.OB), filed for chapter 11
protection on March 4, 2002 (Bankr. N.D. Ill. Case No. 02 B 08209)
to facilitate a sale of its U.S. wholesale business and 23 retail
stores to its U.S. assets to the Weyco Group, Inc. (NASDAQ: WEYS)
for $45.6 million in cash, subject to post closing adjustment.


RCN CORP: Posts $26.6 Million Net Loss for August 2004
------------------------------------------------------

           RCN Corporation, Hot Spots Production, Inc.,
   RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
                     (Debtors-in-Possession)
     Unaudited Condensed Combined Consolidated Balance Sheets
                     As of August 31, 2004
                         (In Thousands)

ASSETS

Current Assets:
Cash and temporary cash investments                        $808
Other current assets                                        941
                                                 --------------
Total current assets                                      1,749

Accounts receivable from non-combined subsidiaries      235,998
Investment in and advances to
   non-combined subsidiaries                          1,482,295
Deferred charges and other assets                       250,884
                                                 --------------
Total assets                                         $1,970,926
                                                 ==============

LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities:
Current maturities of long-term debt                   $452,340
Accounts payable and accrued expenses                     5,433
                                                 --------------
Total current liabilities                               457,773

Accounts payable to non-combined subsidiaries           803,762
Prepetition liabilities subject to compromise
Liabilities subject to compromise                     1,204,387
Series A redeemable Preferred stock                     350,362
Series B redeemable Preferred stock                   1,474,850

Shareholders' deficit:
Common stock                                            123,588
Additional paid in capital                            2,153,287
Cumulative translation adjustment                       (17,288)
Unearned compensation expense                              (119)
Treasury stock                                          (10,166)
Unrealized appreciation on investments                      (61)
Accumulated deficit                                  (4,569,449)
                                                 --------------
Total shareholders' deficit                          (2,320,208)
                                                 --------------
Total liabilities and shareholders' deficit          $1,970,926
                                                 ==============


           RCN Corporation, Hot Spots Production, Inc.,
   RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
                     (Debtors-in-Possession)
       Unaudited Condensed Combined Statement of Operations
       For the period August 1, 2004 through August 31, 2004
                         (In Thousands)

Revenues                                                   $794
Costs and expenses                                          994
Non-cash stock based compensation                           356
Depreciation and amortization                                 6
Reorganization items                                      7,023
                                                 --------------
Operating loss                                           (7,585)

Interest expense                                          8,476
Other expense                                                14
                                                 --------------
Loss before income taxes                                (16,075)

Equity in the income of non-combined subsidiaries       (10,551)
                                                 --------------
Net loss                                               ($26,626)
                                                 ==============


           RCN Corporation, Hot Spots Production, Inc.,
   RCN Finance, LLC, RLH Property Corporation and TEC Air, Inc.
                     (Debtors-in-Possession)
      Unaudited Condensed Combined Statement of Cash Flows
      For the period August 1, 2004 through August 31, 2004
                         (In Thousands)

Cash flows from operating activities:
   Net loss                                            ($26,626)
   Non-cash stock based compensation                        356
   Depreciation and amortization                              6
   Equity loss of non-combined subsidiaries              10,551
   Accretion of discounted debt                             338
   Amortization of financing costs                          537
                                                 --------------
Net cash used in operating activities                   (14,838)

Cash flows from financing activities:
   Payment of long-term debt                                  -
   Investments from non-combined subsidiaries            14,297
                                                 --------------
Net cash provided by financing activities                14,297
                                                 --------------
Net increase (decrease) in cash and
   temporary cash investments                              (541)
                                                 --------------
Beginning cash & temporary cash investments               1,349
                                                 --------------
Ending cash & temporary cash investments                   $808
                                                 ==============

Headquartered in Princeton, New Jersey, RCN Corporation --  
http://www.rcn.com/-- provides bundled Telecommunications   
services.  The Company, along with its affiliates, filed for  
chapter 11 protection (Bankr. S.D.N.Y. Case No. 04-13638) on  
May 27, 2004.  Frederick D. Morris, Esq., and Jay M. Goffman,  
Esq., at Skadden Arps Slate Meagher & Flom LLP, represent the  
Debtors in their restructuring efforts.  When the Debtors filed  
for protection from their creditors, they listed $1,486,782,000 in
assets and $1,820,323,000 in liabilities. (RCN Corp. Bankruptcy
News, Issue No. 13; Bankruptcy Creditors' Service, Inc.,
215/945-7000)    


RELIANCE GROUP: Reports $586,000 Net Loss in September 2004
-----------------------------------------------------------

RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Balance Sheet,
excluding subsidiaries which
are not Debtors-in-Possession              30-Sept-2004
_____________________________________      ____________

ASSETS

Unrestricted Funds                          $56,855,000
                                       ----------------
Total                                        56,855,000

Accounts and Notes Receivable                13,090,000
Prepaid expenses and deposits                   353,000
Due from Reliance Development Group,
    less allowance of $59,334,000                     0
Plant, property & equipment                           -
                                       ----------------
       Total Assets                         $70,298,000
                                       ================

LIABILITIES & SHAREHOLDERS' DEFICIT

Liabilities not subject to compromise
    Postpetition accounts payable            $1,896,000
    Professional fee holdback payable         2,298,000
Liabilities subject to compromise         1,025,318,000
                                       ----------------
       Total liabilities                  1,029,512,000
                                       ----------------

Shareholders' deficit:
    Common stock                             11,616,000
    Additional paid in capital              558,541,000
    Accumulated deficit                  (1,529,371,000)
                                       ----------------
       Total shareholders' deficit         (959,214,000)
                                       ----------------
       Total liabilities & deficit          $70,298,000
                                       ================


RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Statement of         1-Sept-2004
Operations, excluding subsidiaries              to
which are not Debtors-in-Possession        30-Sept-2004
_____________________________________      ____________


Revenues                                             $0
                                       ----------------

Costs and expenses:
    Operating and administrative                 90,000
    Pension Plan Actuarial
      adjustments and expenses                        0
    Depreciation                                      0
                                       ----------------
    Total costs and expenses                     90,000
                                       ----------------
Loss before reorganization items                (90,000)
                                       ----------------
Reorganization items:
    Professional fees                           569,000
    Increase in allowance on balance
       due from Reliance Development
       Group, Inc.                                    0
    Reduction of balance due Reliance  
       Insurance Company per settlement               -
    Interest earned on accumulated
       cash resulting from
       Chapter 11 proceeding                    (73,000)
                                       ----------------
    Total reorganization items                  496,000
                                       ----------------
Income Tax benefits                                   0
                                       ----------------
Net Income                                    ($586,000)
                                       ================


RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Statement of         1-Sept-2004
Cash Flows, excluding subsidiaries               to
which are not Debtors-in-Possession        30-Sept-2004
_____________________________________      ____________

Cash flows from operating activities:
    Loss from operations before
       reorganization items                    ($90,000)
    Adjustments to reconcile loss to
       net cash provided by
       operating activities:
          Income Tax Recovery                         0
          Depreciation                                0
    Changes in:
       Prepaid expenses                         200,000
       Postpetition payables                   (172,000)
       Increase in Liabilities
       subject to compromise                          0
                                       ----------------
    Net cash (used) provided by
        operating activities before
        reorganization items                    (62,000)
                                       ----------------
    Operating cash flows from
       reorganization items:
          Interest earned                        73,000
          Application of retainer
          towards reorganization
          professional fees                           0
          Payment of
          reorganization items                 (628,000)
          Distribution to Reliance
          Insurance Company
          (in liquidation)                            0
                                       ----------------
    Net cash used by
       reorganization items                    (555,000)
                                       ----------------
    Net cash used by
       operating activities                    (617,000)
                                       ----------------
Cash flows from investing activities:
    Receipt from Reliance
    Development Group                                 0
                                       ----------------
       Net cash provided by
          investing activities                        0
                                       ----------------
Cash flow from financing activities:
    Proceeds of split dollar policies                 0
                                       ----------------
       Net cash provided by
          financing activities                        0
                                       ----------------
Net increase in cash                           (617,000)

Cash at beginning of period                  57,472,000
                                       ----------------
Cash at end of period                       $56,855,000
                                       ================

Headquartered in New York, New York, Reliance Group Holdings, Inc.
-- http://www.rgh.com/-- is a holding company that owns 100% of  
Reliance Financial Services Corporation. Reliance Financial, in
turn, owns 100% of Reliance Insurance Company. The holding and
intermediate finance companies filed for chapter 11 protection on
June 12, 2001 (Bankr. S.D.N.Y. Case No. 01-13403) listing
$12,598,054,000 in assets and $12,877,472,000 in debts. The
insurance unit is being liquidated by the Insurance Commissioner
of the Commonwealth of Pennsylvania. (Reliance Bankruptcy News,
Issue No. 62; Bankruptcy Creditors' Service, Inc., 215/945-7000)    


UNIVERSAL ACCESS: Files September 2004 Monthly Operating Report
---------------------------------------------------------------
Universal Access Global Holdings, Inc., filed its September 2004
monthly operating report with the United States Bankruptcy Court
for the Northern District of Illinois, Eastern Division.  The
Debtor's summary of cash receipts and disbursements shows:

         Beginning Cash Balance     $9,701,848
         Total Receipts              3,301,371
         Total Disbursements         4,546,387      
         Ending Cash Balance        $8,456,832

A full-text copy of Universal Access' September Monthly Operating
Report is available at no charge at:

   http://www.sec.gov/Archives/edgar/data/1070699/000110465904031032/a04-11777_1ex99d1.htm


On Oct. 15, 2004, Universal Access, Inc., a subsidiary of
Universal Access Global Holdings, Inc. (UAXSQ.PK), entered into a
letter agreement with AT&T Corp.  The letter agreement provides
that until Oct. 29, 2004, the parties' purchase and receipt of
certain telecommunications data services will continue to be
governed by the terms of the Data Services Terms and Pricing
Attachment between AT&T Corporation and UAI.  The Data Attachment
is a part of the parties' Amended and Restated AT&T Master Carrier
Agreement executed by UAI on June 19, 2001.

Headquartered in Chicago, Illinois, Universal Access Global
Holdings, Inc. -- http://www.universalaccess.com/-- provides
network infrastructure services and facilitates the buying and
selling of capacity on communications networks.  The company, and
its debtor-affiliates, filed for a chapter 11 protection on
August 4, 2004 (Bankr. N.D. Ill. Case No. 04-28747).  John Collen,
Esq., and Rosanne Ciambrone, Esq., at Duane Morris LLC, represent
the Company.  When the Debtor filed for protection from its
creditors, it listed $22,047,000 in total assets and $24,054,000
in total debts.

                          *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                          *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published by  
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania,  
USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L.  
Metzler, Emi Rose S.R. Parcon, Rizande B. Delos Santos, Jazel P.
Laureno, Cherry Soriano-Baaclo, Marjorie Sabijon, Terence Patrick
F. Casquejo and Peter A. Chapman, Editors.

Copyright 2004.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $675 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher
Beard at 240/629-3300.

                    *** End of Transmission ***