/raid1/www/Hosts/bankrupt/TCR_Public/041030.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 30, 2004, Vol. 8, No. 237
Headlines
ADELPHIA COMMS: Reports $35 Million Net Loss in September 2004
ATA HOLDINGS: Consolidated Balance Sheet at June 30, 2004
AVADO BRANDS: Reports $17.8 Million Net Loss in September 2004
CENTURY/ML: Posts $2.9 Million Earnings in September 2004
FRESH CHOICE: Reports $567,959 Net Loss for Period Ended Oct. 3
HAWAIIAN AIRLINES: September 2004 Net Loss is $113.8 Million
NORTHWESTERN CORP: Posts $77,155 Net Income in August 2004
PARMALAT USA: Releases Operating Report Ended Sept. 18, 2004
PARMALAT: Milk Products' Operating Report Ended Sept. 18, 2004
PARMALAT: Farmland Dairies' Operating Report Ended Sept. 18, 2004
SK GLOBAL: Posts $7.4 Million Net Profit in September 2004
UAL CORP: Posts $80 Million Operating Loss in Third Quarter
US AIRWAYS: Third Quarter 2004 Net Loss Widens to $232 Million
*********
ADELPHIA COMMS: Reports $35 Million Net Loss in September 2004
--------------------------------------------------------------
Adelphia Communications Corporation, et al.
Unaudited Consolidated Balance Sheet
As of September 30, 2004
(Dollars in thousands)
ASSETS
Cash and cash equivalents $236,890
Restricted cash 5,007
Subscriber receivables - net 202,401
Other current assets 270,632
-----------
Total current assets 714,930
Restricted cash 33,324
Investments 21,189
Intercompany receivables 27,606,403
Related party receivables 1,760,834
Property, plant and equipment - net 6,933,967
Intangible assets - net 15,319,495
Other noncurrent assets - net 208,933
-----------
Total Assets $52,599,075
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $97,816
Subscriber advance payments and deposits 117,108
Accrued interest and other liabilities 211,383
-----------
Total current liabilities 426,307
Parent and subsidiary debt, net of current 658,236
Accrued and other liabilities 178,751
Deferred income taxes 2,004,762
Intercompany payables 557,542
Related party payables 162,681
-----------
Total noncurrent liabilities 3,561,972
Liabilities subject to compromise 46,051,970
-----------
Total liabilities 50,040,249
Minority interests 535,962
Stockholders' equity:
Convertible preferred stock 397
Class A and Class B common stock 2,548
Additional paid-in capital 9,467,136
Accumulated other comprehensive loss (6,721)
Accumulated deficit (4,444,939)
Treasury stock, at cost (149,401)
-----------
Total 4,869,020
Amounts due from Rigas family entities (2,846,156)
-----------
Total stockholders' equity 2,022,864
-----------
Total liabilities and stockholders' equity $52,599,075
===========
Adelphia Communications Corporation, et al.
Unaudited Consolidated Statements of Operations
Month Ended September 30, 2004
(Dollars in thousands)
Revenue $327,172
Cost and expenses:
Direct operating and programming 205,697
Selling, general and administrative 27,403
Depreciation and amortization 79,172
Impairment of long-lived and other assets -
Non-recurring professional fees 4,346
-----------
Operating income (loss) before reorg expenses 10,554
Reorganization expenses due to bankruptcy 6,693
-----------
Operating income (loss) 3,861
Other income (expense):
Interest expense (39,477)
Equity in losses of affiliates -- net (225)
Minority interest in losses (earnings) of
subsidiaries 643
Other-than-temporary impairment of investments -
Other 106
-----------
Total (38,953)
-----------
Net loss before income taxes (35,092)
Income tax benefit -
-----------
Net loss from continuing operations (35,092)
Discontinued operations -
-----------
Net loss applicable to common stockholders ($35,092)
===========
Adelphia Communications Corporation, et al.
Unaudited Consolidated Statements of Cash Flows
Month Ended September 30, 2004
(Dollars in thousands)
Cash flows from operating activities:
Net loss ($35,092)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 79,172
Amortization of bank financing costs 13,667
Impairment of long-lived and other assets -
Other-than-temporary impairment of investment -
Minority interest in earnings (losses)
of subsidiaries (643)
Equity in losses of affiliates, net 225
Gain on sale of assets - net -
Depreciation, amortization and other non-cash
items from discontinued operations -
Other non-cash items -
Reorganization expenses due to bankruptcy 6,693
Non-recurring professional fees 1,694
Change in assets and liabilities:
Subscriber receivables - net (111)
Prepaid expenses and other assets - net
Other assets - net (2,076)
Accounts payable (15,858)
Subscriber advance payments and deposits 3,193
Accrued interest and other liabilities (1,274)
Liabilities subject to compromise (7,082)
Intercompany receivables and payables - net (572)
-----------
Net cash provided by (used in) operations before
payment of reorganization expenses 41,936
Reorganization expenses paid during the period (7,149)
-----------
Net cash provided by (used in) operating activities 34,787
Cash flows from investing activities:
Expenditures for property, plant and equipment (71,645)
Cash paid for acquisitions (4)
Changes in restricted cash (428)
Proceeds on asset sales 188
Investment distributions and contributions (107)
Related party receivables and payables - net 3,740
-----------
Net cash used in investing activities (68,256)
Cash flows from financing activities:
Proceeds from debt 45,000
Payments of debt (1,835)
Payment of DIP bank financing costs -
-----------
Net cash provided by financing activities 43,165
Change in cash and cash equivalents cash 9,696
Cash, beginning of period 227,194
-----------
Cash, end of period $236,890
===========
Adelphia-affiliates Arahova Communications Inc., Frontiervision
Capital Corp., Frontiervision Holdings Capital Corp.,
Frontiervision Holdings Capital II Corp., Frontiervision Holdings
LP, Frontiervision Operating Partners LP, Olympus Capital Corp.,
and Olympus Communications LP, also delivered copies of Adelphia's
consolidated financial statements to the Securities and Exchange
Commission.
Headquartered in Coudersport, Pennsylvania, Adelphia
Communications Corporation (OTC: ADELQ) is the fifth-largest cable
television company in the country. Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks. The Company and its more than
200 affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002. Those cases are jointly
administered under case number 02-41729. Willkie Farr & Gallagher
represents the ACOM Debtors. (Adelphia Bankruptcy News, Issue No.
72; Bankruptcy Creditors' Service, Inc., 215/945-7000)
ATA HOLDINGS: Consolidated Balance Sheet at June 30, 2004
---------------------------------------------------------
ATA HOLDINGS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At June 30, 2004
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $150,046,000
Receivables, net of allowance for
doubtful accounts ($1,077,000) 114,303,000
Inventories, net 46,803,000
Prepaid expenses and other current assets 30,568,000
-------------
Total current assets 341,720,000
Property and equipment:
Flight equipment 330,993,000
Facilities and ground equipment 147,250,000
-------------
478,243,000
Accumulated depreciation (236,329,000)
-------------
241,914,000
Restricted cash 31,682,000
Goodwill 14,887,000
Prepaid aircraft rent 146,175,000
Investment in BATA 13,679,000
Deposits and other assets 51,549,000
-------------
Total assets $841,606,000
=============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Current maturities of long-term debt $59,597,000
Accounts payable 31,687,000
Air traffic liabilities 125,677,000
Accrued expenses 171,398,000
-------------
Total current liabilities 388,359,000
Long-term debt, less current maturities 433,531,000
Deferred gains from sale and leaseback of aircraft 53,484,000
Other deferred items . 80,695,000
Mandatorily redeemable preferred stock;
authorized and issued 500 shares 50,000,000
-------------
Total liabilities 1,006,069,000
Commitments and contingencies
Convertible redeemable preferred stock;
authorized and issued 300 shares 30,000,000
Shareholders' deficit:
Preferred stock; authorized
9,999,200 shares; none issued -
Common stock, without par value; authorized
30,000,000 shares; issued 13,535,304 66,236,000
Treasury stock; 1,711,440 shares (24,778,000)
Additional paid-in capital 17,938,000
Accumulated deficit (253,859,000)
-------------
Total shareholders' deficit (194,463,000)
-------------
Total liabilities and shareholders' deficit $841,606,000
=============
*** ATA Holdings, Inc., reports $745,159,000 in total assets and
*** $940,521,000 in total liabilities, as of August 31, 2004, in
*** papers filed with the U.S. Bankruptcy Court.
Headquartered in Indianapolis, Indiana, ATA Airlines, owned by ATA
Holdings Corp. -- http://www.ata.com/-- is the nation's 10th
largest passenger carrier (based on revenue passenger miles) and
one of the nation's largest low-fare carriers. ATA has one of the
youngest, most fuel-efficient fleets among the major carriers,
featuring the new Boeing 737-800 and 757-300 aircraft. The
airline operates significant scheduled service from Chicago-
Midway, Hawaii, Indianapolis, New York and San Francisco to over
40 business and vacation destinations. ATA filed for chapter 11
protection on Oct. 26, 2004 (Bankr. S.D. Ind. Case No. 04-19866).
Terry E. Hall, Esq., at Baker & Daniels, represents the Debtors in
their restructuring efforts. When the Debtors filed for
protection from their creditors, they listed $745,159,000 in total
assets and $940,521,000 in total debts.
AVADO BRANDS: Reports $17.8 Million Net Loss in September 2004
--------------------------------------------------------------
Avado Brands, Inc., the owner and operator of the Don Pablo's and
Hops restaurant chains, delivered its September 2004 Monthly
Operating Report to the U.S. Bankruptcy Court for the Northern
District of Texas.
For the period ended Sept. 26, 2004, Don Pablo's reports
$1,056,000 of net income, Hops reports a net loss of $16,244,000
and $2,655,000 of net losses at the corporate level resulted in a
consolidated net loss of $17,842,000.
A full-text copy of Avado Brands, Inc.'s September Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/849101/000084910104000033/morsep.txt
Headquartered in Madison, Georgia, Avado Brands, Inc. --
http://www.avado.com/-- owns and operates two proprietary brands
comprised of 102 Don Pablo's Mexican Kitchens and 37 Hops
Grillhouse & Breweries. The company recently introduced a new
Hops City Grille concept that is currently in test in Florida.
The Company and its debtor-affiliates filed voluntary chapter 11
petitions on Feb. 4, 2004 (Bankr. N.D. Tex. Case No. 04-31555).
Deborah D. Williamson, Esq., and Thomas Rice, Esq., at Cox & Smith
Incorporated, represent the Debtors in their restructuring
efforts. Miller Buckfire Lewis Ying & Co., LLC, is providing
financial advisory services. When the Debtors filed for
protection from its creditors, they listed $228,032,000 in total
assets and $263,497,000 in total debts.
CENTURY/ML: Posts $2.9 Million Earnings in September 2004
---------------------------------------------------------
Century-ML Cable Venture
(Debtor-In-Possession)
Unaudited Balance Sheet
As of September 30, 2004
(Dollars in thousands)
ASSETS
Cash and cash equivalents $16,635
Subscriber receivables - net 617
Investment in Century-ML Corporation 128,337
Related party receivables 231
Other current assets 334
--------
Total current assets 146,154
Property, plant and equipment - net 6,046
Intangible assets - net 1,528
--------
Total assets $153,728
========
LIABILITIES AND STOCKHOLDERS' EQUITY
Subscriber advance payments and deposits $381
Accrued expenses and other liabilities 1,532
Intercompany payables 2,055
--------
Total current liabilities 3,968
--------
Long-term accrued and other liabilities 107
Deferred income taxes 45
--------
Total non-current liabilities 152
Liabilities subject to compromise:
Accounts payable 20
Accrued expenses and other liabilities 1,376
Intercompany payables 10,937
--------
Total liabilities subject to compromise 12,333
--------
Total liabilities 16,453
--------
Partners' equity:
Partners' contributions 56,800
Partners' retained earnings 80,475
--------
Total partners' equity 137,275
--------
Total liabilities and partners' equity $153,728
========
Century-ML Cable Venture
(Debtor-In-Possession)
Unaudited Statement of Operations
For the Month Ended September 30, 2004
(Dollars in thousands)
Revenue $1,114
Cost and expenses:
Direct operating and programming 520
Selling, general and administrative 27
Management fees 41
Non-recurring professional fees -
Depreciation 76
--------
Operating income before reorganization
expenses due to bankruptcy 450
Reorganization expenses due to bankruptcy 46
--------
Operating income 404
Interest income - net 12
Equity in net income of Century-ML Cable
Corporation - net of taxes 2,700
--------
Income before income taxes 3,116
Income tax expense (213)
--------
Net income $2,903
========
Century-ML Cable Venture
(Debtor-In-Possession)
Unaudited Statement of Cash Flows
For the Month Ended September 30, 2004
(Dollars in thousands)
Cash flow from operating activities:
Net income $2,903
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation 76
Reorganization expenses due to bankruptcy 46
Non-recurring professional fees -
Equity in net income of Century-ML Cable
Corporation - net of taxes (2,700)
Change in assets and liabilities:
Subscriber receivables - net (115)
Prepaid expenses and other assets - net (8)
Accounts payable -
Subscriber advance payments and deposits 22
Accrued expenses and other liabilities 247
Intercompany receivables and payables - net (730)
--------
Net cash provided by operating activities (259)
--------
Cash flows from investing activities:
Expenditures from property, plant and equipment (53)
--------
Net cash used in investing activities (53)
--------
Change in cash and cash equivalents (312)
Cash and cash equivalents, beginning of period 16,947
--------
Cash and cash equivalents, end of period $16,635
========
Headquartered in Coudersport, Pennsylvania, Adelphia
Communications Corporation (OTC: ADELQ) is the fifth-largest cable
television company in the country. Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks. The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002. Those cases are jointly
administered under case number 02-41729. Willkie Farr & Gallagher
represents the ACOM Debtors. (Adelphia Bankruptcy News, Issue No.
70; Bankruptcy Creditors' Service, Inc., 215/945-7000)
FRESH CHOICE: Reports $567,959 Net Loss for Period Ended Oct. 3
---------------------------------------------------------------
On Oct. 26, 2004, Fresh Choice, Inc., filed with the United States
Bankruptcy Court for the Northern District of California its
Monthly Operating Report for the four-week period ended Oct. 3,
2004.
The Company reports a $567,959 net loss in $1,932,051 of total
revenues for the four-week period from Sept. 6, 2004 through
Oct. 3, 2004.
At Oct. 3, 2004, Fresh Choice, Inc.'s balance sheet shows:
Current Assets $7,013,514
Total Assets 23,320,210
Current Liabilities 6,436,066
Total Prepetition Liabilities 12,878,628
Total Liabilities 21,205,966
Total Equity $2,114,244
A full-text copy of Fresh Choice, Inc.'s Monthly Operating Report
for the period ended Oct. 3, 2004, is available at no charge at:
http://www.sec.gov/Archives/edgar/data/893741/000115752304009841/a4750533ex991.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.
HAWAIIAN AIRLINES: September 2004 Net Loss is $113.8 Million
------------------------------------------------------------
On Oct. 27, 2004, Hawaiian Airlines, the sole operating subsidiary
of Hawaiian Holdings, Inc., filed its unaudited September 2004
Monthly Operating Report with the United States Bankruptcy Court
for the District of Hawaii. The carrier reports a $113,823,000
net loss on $55,687,000 of revenues in September.
At Sept. 30, 2004, Hawaiian Airlines' balance sheet showed:
Total Current Assets $257,831,000
Total Assets 369,478,000
Total Current Liabilities 252,171,000
Total Liabilities 439,519,000
Liabilities Subject to Compromise 216,211,000
Shareholder's Deficit $286,252,000
A full-text copy of Hawaiian Airlines' September 2004 Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1172222/000095013604003576/file002.htm
Headquartered in Honolulu, Hawaii, Hawaiian Airlines, Inc., --
http://hawaiianair.com/-- is a subsidiary of Hawaiian Holdings,
Inc. (Amex and PCX: HA). The Company provides primarily scheduled
transportation of passengers, cargo and mail. Flights operate
within the South Pacific and to points on the west coast as well
as Las Vegas. Since the appointment of a bankruptcy trustee in May
2003, Hawaiian Holdings has had no involvement in the management
of Hawaiian Airlines and has had limited access to information
concerning the airline. The Company filed for chapter 11
protection on March 21, 2003 (Bankr. D. Hawaii Case No. 03-00817).
Joshua Gotbaum serves as the chapter 11 trustee for Hawaiian
Airlines, Inc. Mr. Gotbaum is represented by Tom E. Roesser, Esq.,
and Katherine G. Leonard at Carlsmith Ball LLP and Bruce Bennett,
Esq., Sidney P. Levinson, Esq., Joshua D. Morse, Esq., and John L.
Jones, II, Esq., at Hennigan, Bennett & Dorman LLP.
As reported in the Troubled Company Reporter on Oct. 11, 2004, the
Honorable Robert J. Faris of the U.S. Bankruptcy Court for the
District of Hawaii approved the Disclosure Statement explaining
the Joint Plan of Reorganization co-proposed by Joshua Gotbaum,
the chapter 11 Trustee overseeing Hawaiian Airlines' chapter 11
case, the Official Committee of Unsecured Creditors, Hawaiian
Holdings, Inc., HHIC, Inc., and RC Aviation LLC. The plan will
now be transmitted to the carrier's creditor for a vote. The Plan
Proponents will be looking for acceptances from creditors holding
at least two-thirds of the dollars and more than one-half of the
number of claims in each class. The Plan proposes to pay all
creditors in full.
Creditors' ballots must be returned by Dec. 15, 2004, to be
counted. The Plan Proponents will return to Judge Faris on Jan.
25, 2005, to lay out their case that the Joint Plan complies with
the 13 requirements set forth in 11 U.S.C. Sec. 1129, and should
be confirmed.
NORTHWESTERN CORP: Posts $77,155 Net Income in August 2004
----------------------------------------------------------
On Oct. 20, 2004, NorthWestern Corporation filed with the U.S.
Bankruptcy Court for the District of Delaware its August 2004
Monthly Operating Report. NorthWestern reports $77,155 net income
on $37,789,085 of revenues.
For the month ending Aug. 31, 2004, NorthWestern Corporation'
balance sheet showed:
Total Current Assets $1,223,860,633
Total Assets 2,396,022,278
Total Postpetition Liabilities 243,037,074
Total Liabilities 2,470,884,805
Shareholders' Deficit $574,862,527
A full-text copy of NorthWestern Corporation's August Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/73088/000104746904032166/a2145439zex-2_3.htm#toc_mk8934_1
Headquartered in Sioux Falls, South Dakota, NorthWestern
Corporation (Pink Sheets: NTHWQ) -- http://www.northwestern.com/
-- provides electricity and natural gas in the Upper Midwest and
Northwest, serving approximately 608,000 customers in Montana,
South Dakota and Nebraska. The Debtors filed for chapter 11
protection on September 14, 2003 (Bankr. Del. Case No. 03-12872).
Scott D. Cousins, Esq., Victoria Watson Counihan, Esq., and
William E. Chipman, Jr., Esq., at Greenberg Traurig, LLP, and
Jesse H. Austin, III, Esq., and Karol K. Denniston, Esq., at Paul,
Hastings, Janofsky & Walker, LLP, represent the Debtors in their
restructuring efforts. On the Petition Date, the Debtors reported
$2,624,886,000 in assets and liabilities totaling $2,758,578,000.
The Court entered a written order confirming the Debtors' Second
Amended and Restated Plan of Reorganization which is expected to
take effect on Nov. 1, 2004.
PARMALAT USA: Releases Operating Report Ended Sept. 18, 2004
------------------------------------------------------------
Parmalat USA Corporation
Balance Sheet
As of September 18, 2004
Assets
Cash & Cash Equivalents $0
Accounts Receivable-Net 0
Notes Receivable -Current 0
Inventory 0
Prepaid Expenses 0
Other Current Assets 0
--------------
Total Current Assets 0
Fixed Assets 0
Accumulated Depreciation 0
--------------
Net Fixed Assets 0
Other Assets 326,271,339
Intercompany Receivables 24,965,787
--------------
Total Assets $351,237,126
==============
Liabilities Subject to Compromise
Long Term Debt & Interest $19,836,909
Intercompany payables 212,783,632
--------------
Total Liabilities Subject to Compromise 232,620,541
Liabilities
Accounts Payable 0
Notes & Loans Payable 0
Accrued Expenses 749,778
Intercompany Payables 0
--------------
Total Liabilities 233,730,319
Equity
Common Stock 1,388,356
Paid In Capital 227,962,103
Retained Earnings (110,643,290)
YTD Net Income/(Loss) (840,362)
--------------
Total Equity 117,866,807
--------------
Total Liabilities & Owners' Equity $351,237,126
==============
Parmalat USA Corporation
Income Statement
From August 22, 2004 to September 18, 2004
Revenues
Gross sales -
Less: Returns & discounts -
--------------
Net sales $0
Expenses
Raw Materials & Ingredients -
Packaging -
Direct Labor -
Power -
Freight -
Distribution -
Industrial Depreciation -
Production Overhead -
Warehouse (Cooler) -
Marketing Costs -
Sales Admin Expenses -
General Expenses -
Financial Costs 78,692
Goodwill/trademarks 18,226
Extraordinary -
Corporate Allocation -
Depreciation -
Amortization -
Income Taxes -
--------------
Total Expenses 96,918
Reorganization Expenses
Professional Fees -
U.S. Trustee Fees 0
Other -
--------------
Total Reorganization Expenses 0
--------------
Net Profit (Loss) ($96,918)
==============
Parmalat USA Corporation received no cash nor made disbursements
from August 22, 2004, to Sept. 18, 2004.
Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue. The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents. The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-
11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil
Gotshal & Manges LLP represent the Debtors in their restructuring
efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in
assets and EUR1,061,786,417 in debts. (Parmalat Bankruptcy News,
Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945-7000)
PARMALAT: Milk Products' Operating Report Ended Sept. 18, 2004
--------------------------------------------------------------
Milk Products of Alabama, LLC
Balance Sheet
As of September 18, 2004
Assets
Cash & Cash Equivalents $278,836
Accounts Receivable-Net 3,417,654
Inventory 1,192,550
Prepaid Expenses 200,641
Other Current Assets 4,521
--------------
Total Current Assets 5,094,202
Fixed Assets 10,926,223
Accumulated Depreciation 6,723,074
--------------
Net Fixed Assets 4,203,149
Other Assets 885,023
Intercompany Receivables 0
--------------
Total Assets $10,182,374
==============
Liabilities Subject to Compromise
Accrued Expenses $45,227
Intercompany payables 8,338,493
--------------
Total Liabilities Subject to Compromise 8,383,720
Liabilities
Accounts Payable 192,367
Accrued Expenses 214,532
--------------
Total Current Liabilities 406,899
Long Term Notes Payable -- Intercompany -
Other 271,327
--------------
Total Long Term Liabilities 271,327
Intercompany Payables 1,495,391
--------------
Total Liabilities 10,557,337
Equity
Retained Earnings 18,414
YTD Net Income/(Loss) (393,377)
--------------
Total Equity (374,963)
--------------
Total Liabilities & Owners' Equity $10,182,374
==============
Milk Products of Alabama, LLC
Income Statement
From August 22, 2004 to September 18, 2004
Revenues
Gross sales $3,651,042
Less: Returns & discounts 5,063
--------------
Net sales 3,645,979
Expenses
Raw Materials & Ingredients 2,450,540
Packaging 327,586
Direct Labor 80,712
Power 88,479
Freight 154,427
Industrial Depreciation 30,093
Production Overhead 187,649
Warehouse (Cooler) 10,503
Marketing Costs 0
Sales Admin Expenses 45,116
General Expenses 60,408
Financial Costs 23,013
Other (Income) Expense (400)
Extraordinary (39,527)
Corporate Allocation 0
Income Taxes 0
--------------
Total Expenses 3,418,599
Reorganization Expenses
Professional Fees -
U.S. Trustee Fees 385,487
Other -
--------------
Total Reorganization Expenses 385,487
--------------
Net Profit (Loss) ($158,107)
==============
Milk Products of Alabama, LLC
Cash Receipts and Disbursements
From August 22, 2004 to September 18, 2004
Cash - Beginning of Month $2,300,010
Receipts From Operations
Cash Sales -
Collection of Accounts Receivable
Prepetition 0
Postpetition 3,480,187
--------------
Total Operating Receipts 3,480,187
Non - Operating Receipts
Transfers (5,500,000)
Other (124)
--------------
Total Non-Operating Receipts (5,500,124)
--------------
Total Receipts (2,019,937)
--------------
Total Cash Available 280,073
Operating Disbursements
Bank Charges -
Freight -
Ingredients -
Licenses & Taxes -
Packaging -
Raw Milk -
R & M, Parts, Supplies -
Other 13
Warehouse (Cooler) -
Marketing Costs -
Sales Admin Expenses -
General Expenses 1,224
Financial Costs -
Goodwill/trademarks -
Extraordinary -
Corporate Allocation -
Income Taxes -
--------------
Total expenses 1,237
Reorganization Expenses
Professional Fees -
U.S. Trustee Fees -
Other -
--------------
Total Reorganization Expenses -
--------------
Total Disbursements 1,237
--------------
Net Cash Flow (2,021,174)
--------------
Cash - End of Month $278,837
==============
Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue. The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents. The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-
11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil
Gotshal & Manges LLP represent the Debtors in their restructuring
efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in
assets and EUR1,061,786,417 in debts. (Parmalat Bankruptcy News,
Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945-7000)
PARMALAT: Farmland Dairies' Operating Report Ended Sept. 18, 2004
-----------------------------------------------------------------
Farmland Dairies, LLC
Balance Sheet
As of September 18, 2004
Assets
Cash & Cash Equivalents $7,686,247
Accounts Receivable-Trade 39,618,377
Accounts Rec.-Securitization (37,068,087)
Notes Receivable 257,761
Inventory 16,128,470
Prepaid Expenses 15,039,416
Other Current Assets 887,380
--------------
Total Current Assets 42,549,564
Fixed Assets 210,167,089
Accumulated Depreciation 115,524,248
--------------
Net Fixed Assets 94,642,841
Other Assets 43,957,067
Intercompany Receivables 80,314,080
--------------
Total Assets $261,463,552
==============
Liabilities Subject to Compromise:
Accounts Payable 14,612,357
Accrued Expenses 3,296,589
Intercompany Payables 25,318,781
Capital Lease 95,000,000
--------------
Total Liabilities Subject to Compromise 138,227,727
Liabilities:
Notes & Loans Payable 0
Capital Leases - Short Term 0
Accounts Payable 14,708,115
Accrued Expenses 24,139,970
--------------
Total Current Liabilities 38,848,085
Notes & Loans Payable 31,877,585
Capital Leases - Long Term 43,391
Other 8,389,235
--------------
Total Long Term Liabilities 40,310,211
Intercompany Payables (82,068,989)
--------------
Total Liabilities 135,317,034
Equity
Paid In Capital 161,506,590
Accum Comprehensive Income (7,013,988)
Retained Earnings 11,323,693
YTD Net Income/(Loss) (39,669,777)
--------------
Total Equity 126,146,518
--------------
Total Liabilities & Owners' Equity $261,463,552
==============
Farmland Dairies, LLC
Income Statement
From August 22, 2004 to September 18, 2004
Revenues
Gross sales $33,820,700
Less: Returns & discounts 814,650
--------------
Net sales 33,006,050
Expenses
Raw Materials & Ingredients 20,790,615
Packaging 2,423,520
Direct Labor 955,516
Power 477,228
Freight 416,924
Distribution 2,558,674
Industrial Depreciation 388,326
Production Overhead 2,131,317
Warehouse (Cooler) 1,676,282
Marketing Costs 650,627
Sales Admin Expenses 421,396
General Expenses 1,073,162
Financial Costs 855,416
Goodwill/trademarks 6,756
Extraordinary 74,152
Corporate Allocation 0
Provision for Income Taxes 0
--------------
Total Expenses 34,899,911
Reorganization Expenses 2,023,249
--------------
Net Profit (Loss) ($3,917,110)
==============
Farmland Dairies, LLC
Cash Receipts and Disbursements
From August 21, 2004 to September 18, 2004
Cash - Beginning of Month $13,998,799
Receipts From Operations
Cash Sales 0
Collection of Accounts Receivable
Prepetition -
Postpetition -
--------------
Total Operating Receipts 32,594,955
Non - Operating Receipts
Payments from/(to) GE Capital 1,800,000
Voided Checks (Prepetition) -
Adjustments (20,687)
Deposits -- Other 349,243
Transfers 5,500,000
--------------
Total Non-Operating Receipts 7,628,556
--------------
Total Receipts 40,223,511
--------------
Total Cash Available 54,222,310
Operating Disbursements
Chemicals 413,318
Commissions 8,590
Consulting/Legal 67,697
Co-packing 575,731
Employee & Employee-related expenses 2,542,190
Equipment Leases 406,252
Freight & Postage 314,562
Fuel 85,331
Transportation 589,549
Ingredients 1,433,324
Insurance 1,140,417
Lab Fees 23,240
Licenses & Taxes 231,428
Marketing 32,236
Other 660,886
Packaging 2,323,000
Pallets/Cases/Bossies 200,533
Milk Producers 19,264,613
Marketing Administrator 809,167
Purchased Products 766,250
R & M, Parts, Supplies 1,000,847
Raw Milk 764,381
Rebates 39,211
Rent 200,560
Security 79,520
Temporary Labor 50,023
Travel & Entertainment 36,249
Utilities 862,006
Securitization Payments 5,722,021
Payroll 3,473,849
Payroll Taxes 335,896
Voided Checks (Postpetition) (190,089)
--------------
Total expenses 44,262,788
Reorganization Expenses
Professional Fees 2,558,981
U.S. Trustee Fees -
DIP Interest & Fees 183,722
--------------
Total Reorganization Expenses 2,742,703
--------------
Total Disbursements 47,005,491
--------------
Net Cash Flow (6,781,981)
--------------
Cash - End of Month $7,216,818
==============
Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue. The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents. The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-
11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil
Gotshal & Manges LLP represent the Debtors in their restructuring
efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in
assets and EUR1,061,786,417 in debts. (Parmalat Bankruptcy News,
Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945-7000)
SK GLOBAL: Posts $7.4 Million Net Profit in September 2004
----------------------------------------------------------
SK Global America, Inc.
Unaudited Balance Sheet
As of September 30, 2004
ASSETS
Unrestricted Cash and cash equivalents $161,981,929
Restricted Cash and cash equivalents -
Accounts receivable - net 220,622,083
Interest receivables 1,048,613
Commission receivables 4,689,417
Other receivables 3,848,384
Suspense payment 1,470,674
Payment in advance 10,000
Inventories 13,767,046
Prepaid expenses 107,701
Other Current Assets -
---------------
Total Current Assets 407,545,848
Real Property and improvements 10,447
Machinery and equipment -
Furniture, fixtures and office equipment 747,980
Leasehold improvements 237,368
Vehicles 87,641
Less Accumulated Depreciation (886,066)
---------------
Total Property & Equipment 197,368
Loans to Insiders
Other Assets 25,250,525
---------------
Total Other Assets 25,250,525
---------------
TOTAL ASSETS $432,993,741
===============
LIABILITIES AND OWNER EQUITY
Liabilities not subject to compromise:
Accounts Payable $606,934
---------------
Total Postpetition Liabilities 606,934
Liabilities subject to compromise:
Secured debt 133,669,769
Priority debt 38,726
Unsecured debt 2,891,369,628
---------------
Total Prepetition Liabilities 3,025,078,123
---------------
Total Liabilities 3,025,685,057
Owner Equity:
Capital Stock 20,000,000
Additional paid-in capital 70,000,000
Owner's Equity Account -
Retained earnings - prepetition (2,679,352,128)
Retained earnings - postpetition (3,339,189)
---------------
Net Owner Equity (2,592,691,317)
---------------
T0TAL LIABILITIES & OWNERS' EQUITY $432,993,741
===============
SK Global America, Inc.
Unaudited Statement of Operations
September 1 to September 30, 2004
Revenues
Gross Revenues $13,399,835
Less: Returns and Allowances 15,589
---------------
Net Revenue 13,384,245
Cost of Goods Sold
Beginning Inventory 13,706,937
Add: Purchases 13,580,521
Add: Cost of Labor 0
Add: Other Costs 0
Less: Ending Inventory 13,767,046
---------------
Cost of Goods Sold 13,520,412
---------------
Gross Profit (136,167)
Operating Expenses
Salaries and employee benefits 141,722
Travel and Related Expenses 5,260
Utilities 2,923
Materials and supplies -
Advertising & Promotions 457
Communications 6,825
Delivery 121,874
Purchases Services 2,121
Rentals and Royalties 9,242
Property & Bus License taxes -
Insurance 33,036
Direct & Indirect selling expenses 131,516
Repairs & Maintenance 2,037
Other 102,811
---------------
Total Operating Expenses before depreciation 559,822
Depreciation/Depletion/Amortization 7,696
---------------
Net Profit (Loss) before other income & expenses (703,686)
Other Income and Expenses
Other Income 8,209,250
Interest Expense 13,138
Other Expense -
---------------
Net Profit (Loss) before Reorganization Items 7,492,426
Reorganization Items
Professional fees (131,562)
U.S. Trustee Quarterly fees -
Interest earned on accum. cash from Chap. 11 -
Gain (Loss) from sale of equipment -
Other Reorganization expenses -
Income Taxes -
---------------
NET PROFIT (LOSS) $7,360,865
===============
SK Global America, Inc.
Unaudited Schedule of Cash Receipts and Disbursements
September 1 to September 30, 2004
CASH -- BEGINNING OF MONTH $129,046,900
---------------
Receipts
Accounts Receivable 7,913,894
Loans and Advances 39,509,618
Sale of Assets 8,648
Other 138,436
Transfers (from DIP accounts) -
---------------
Total Receipts 47,570,596
Disbursements
Payroll 69,963
Payroll Taxes 21,812
Other Taxes -
Inventory purchases 14,057,772
Rental/leases 9,242
Insurance -
Administrative -
Selling -
Other 476,777
Professional Fees
U.S. Trustee Quarterly Fees -
---------------
Total Disbursements 14,635,566
Net cash flow 32,935,029
---------------
CASH -- END OF MONTH $161,981,929
===============
Headquartered in Fort Lee, New Jersey, SK Global America, Inc., is
a subsidiary of SK Global Co., Ltd., one of the world's leading
trading companies. The Debtors file for chapter 11 protection on
July 21, 2003 (Bankr. S.D.N.Y. Case No. 03-14625). Albert Togut,
Esq., and Scott E. Ratner, Esq., at Togut, Segal & Segal, LLP,
represent the Debtors in their restructuring efforts. When they
filed for bankruptcy, the Debtors reported $3,268,611,000 in
assets and $3,167,800,000 of liabilities. SK Global's Liquidation
Plan, confirmed on Sept. 15, 2003, was declared effective on
Oct. 21, 2004.
UAL CORP: Posts $80 Million Operating Loss in Third Quarter
-----------------------------------------------------------
UAL Corporation (OTC Bulletin Board: UALAQ), the holding company
whose primary subsidiary is United Airlines, reported its third-
quarter 2004 financial results.
UAL reported a third-quarter operating loss of $80 million, which
compares with a $19 million operating profit in the third quarter
of 2003. UAL reported a net loss of $274 million, which includes
$97 million in special and reorganization items described in the
notes to the financial tables. Excluding the $97 million in
special and reorganization items, UAL's net loss for the third
quarter totaled $177 million, or a loss per basic share of $1.55.
"A systemic change is underway in the airline industry. Excess
capacity has led to the lowest fares in more than a decade," said
Glenn Tilton, chairman, president and chief executive officer.
"This new environment, coupled with record fuel costs, means we
have more work to do if we are to be successful. And we will be.
With our unmatched global route network, and our people, who
continue to deliver excellent customer service, no one is better
positioned in this industry than United to be sustainable,
profitable and competitive for the long term."
United Continues Work on Ongoing Strategy
In the third quarter, United continued work on its ongoing
strategy to reduce costs, leverage the product portfolio and
network, deliver operational excellence and focus on customer
service and investment in products. Specifically, United:
-- Successfully negotiated the expansion of its debtor-in-
possession financing to $1 billion on favorable terms and
extended the repayment schedule through June 2005,
demonstrating that major financial institutions support the
company's long-term prospects.
-- Substantially accelerated the company's plan to optimize its
worldwide network by expanding its international leadership,
redeploying aircraft to more profitable routes and reducing
the overall size of its mainline fleet;
-- Leveraged United's core competencies to improve revenue from
sources other than commercial flights, including United
Services' maintenance, repair and overhaul services and
United Cargo freight revenue;
-- Agreed with certain large holders of Chicago municipal bonds
to a settlement, which in effect, reduced United's
indebtedness from about $600 million to $150 million. This
settlement results in savings of approximately $450 million
for United.
-- Continued to deliver outstanding operational performance for
the third quarter 2004. Seventy percent of United flights
departed exactly on time during the quarter, two percentage
points better than the goal set by the company for its new
employee incentive program.
"United's financial performance, like the rest of the industry,
was severely affected by low yields and the soaring cost of fuel
during one of the traditionally most profitable periods. During
the third quarter, the company burned through almost $1 million
per day on an operating basis," said Jake Brace, United's
executive vice president and chief financial officer. "Even though
our unit revenue performance was on par with our peers, the
pricing environment prohibits us from recouping high fuel costs.
Given the urgency of United's situation and the stark financial
reality in the entire industry, United believes that it will have
no choice but to seek significant additional labor savings beyond
terminating and replacing our pension plans."
Notwithstanding the $5 billion in annualized cost reductions the
company will have in place by 2005, United previously announced
that it had targeted more than $1 billion in additional cost
savings over and above any savings that United might realize
through the potential termination and replacement of its pension
plans. UAL expects to substantially update its business plan based
on feedback from the capital markets, the creditor's committee and
other stakeholders.
Financial Results
UAL's third-quarter 2004 operating revenues were $4.3 billion, up
7% compared to third quarter 2003. Load factor increased 1.9
points to 82.1% as traffic increased 11% on an 8% increase in
capacity. During the third quarter, passenger unit revenue was 3%
lower on a 5% yield decrease.
Largely driven by the 8% increase in capacity, total operating
expenses for the quarter were $4.4 billion, up 10% from the year-
ago quarter. Mainline operating expenses per available seat mile
increased 1% from the third quarter 2003. Excluding fuel, mainline
operating expenses per available seat mile decreased 7%.
Productivity (available seat miles divided by employee
equivalents) was up 9% for the quarter year-over-year. Fuel
expense was $291 million higher than in the third quarter 2003.
Average fuel price for the quarter was $1.30 per gallon (including
taxes), up 44% year-over-year.
The company ended the quarter with an unrestricted cash balance of
$1.5 billion and an additional restricted cash balance of $857
million. During the quarter the company made a quarterly
retroactive wage payment to International Association of
Machinists members of $63 million and a quarterly Success Sharing
reward to employees of $26 million. In addition, non-aircraft
capital expenditures totaled $79 million and principal debt
repayments totaled $136 million. During September, the company
accessed $503 million from the expanded debtor-in-possession
financing.
The company had an effective tax rate of zero for the third
quarter, which makes UAL's pre-tax loss the same as its net loss.
Outlook
The Company expects fourth-quarter system mainline capacity to be
up about 3% year- over-year. Mainline capacity for 2005 is
expected to be about 3% lower than 2004. The company expects fuel
price, including taxes, for the fourth quarter to average $1.45
per gallon. As a result, fuel expense for the year is expected to
be $1.2 billion higher than planned. The company has 36% of its
expected fuel consumption for the fourth quarter hedged between $1
and $1.17 per gallon, excluding taxes.
September Monthly Operating Report
UAL also filed with the United States Bankruptcy Court its Monthly
Operating Report for September. The company posted a $118 million
operating loss for September and met its DIP covenants for the
month. The Company reported that they are currently in compliance
with the terms of the Club Facility; however, they now believe
that, due to record high fuel prices coupled with continued
weakness in the revenue environment, there is a strong possibility
that we will not be able to comply with the Club Facility's
EBITDAR covenant in the fourth quarter. Under the current terms of
the Club Facility, failure to comply with the EBITDAR covenant
would constitute a default of the Club Facility. The Company is
currently in discussions with the Club Facility lenders regarding
this situation.
Headquartered in Chicago, Illinois, UAL Corporation --
http://www.united.com/-- through United Air Lines, Inc., is the
holding company for United Airlines -- the world's second largest
air carrier. The Company filed for chapter 11 protection on
December 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M.
Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq.,
and Steven R. Kotarba, Esq., at Kirkland & Ellis, represent the
Debtors in their restructuring efforts. When the Debtors filed
for protection from their creditors, they listed $24,190,000,000
in assets and $22,787,000,000 in debts.
US AIRWAYS: Third Quarter 2004 Net Loss Widens to $232 Million
--------------------------------------------------------------
US Airways Group, Inc., reported a net loss of $232 million for
the third quarter 2004, compared to a net loss of $90 million for
the third quarter 2003. The net loss per share was $4.22 for the
third quarter of 2004, compared to a net loss of $1.69 per share
for the third quarter of 2003.
The third quarter 2004 pre-tax loss of $239 million compares to a
pre-tax loss of $91 million for the same quarter in 2003.
Excluding unusual items, the pre-tax loss for the third quarter
2004 was $227 million compared to $91 million in 2003.
"I am disappointed that we have reported yet another quarterly
loss, however, I am confident that we are charting a new course
with a well-crafted plan, that if fully implemented, can return US
Airways to profitability," said US Airways President and Chief
Executive Officer Bruce R. Lakefield. "This is a strong franchise,
with hard-working employees who have the will to succeed, and
given the right cost structure, we will be successful."
Mr. Lakefield said that he was heartened by the ratification of a
new labor agreement by the Air Line Pilots Association (ALPA) and
three work groups represented by the Transport Workers Union
(TWU). Additionally, the company is in negotiations with its other
unions, and continues to make progress in all areas of its
Transformation Plan, highlighted by the February 2005 change to
its business model where new flying and operational efficiencies
will be implemented. He noted that operating revenue for the third
quarter 2004 improved to $1.80 billion from $1.77 billion for the
third quarter of 2003, which is a 1.6 percent increase year-over-
year.
System passenger revenue per available seat mile (PRASM) for the
third quarter 2004 was 10.12 cents, down 3.4 percent compared to
the third quarter of 2003. Domestically, system PRASM fell 5.3
percent to 10.68 cents. System statistics encompass mainline,
MidAtlantic Airways, wholly owned airline subsidiaries of US
Airways Group, Inc. as well as capacity purchases from third
parties operating regional jets as US Airways Express. For US
Airways mainline operations only, the PRASM of 9.12 cents was down
3.1 percent.
System available seat miles (ASMs) were up 4.1 percent, while
mainline ASMs increased 2.1 percent during the third quarter 2004.
Revenue passenger miles (RPMs) increased 6.2 percent for the full
US Airways system, while mainline RPMs increased 3.3 percent. The
third quarter system load factor of 76.1 percent was up 1.4
percentage points year-over-year. The mainline passenger load
factor was up 0.9 percentage points to 77.8 percent. For the third
quarter 2004, US Airways Group Inc.'s system carried 14.3 million
passengers, an increase of 4.2 percent, while mainline operations
carried 10.4 million passengers, a 1.4 percent decrease compared
to the same period of 2003. The third quarter 2004 yield for
mainline operations of 11.73 cents decreased 4.2 percent from the
same period in 2003, while system yield was down 5.3 percent to
13.29 cents.
US Airways Senior Vice President of Marketing and Planning B. Ben
Baldanza said that the company's Transformation Plan assumes that
it will continue to operate in an environment of high fuel prices,
continued growth of low-fare competition, diluted yields and more
consumer dependency on the Internet. "We long have recognized that
the paradigm has shifted and that for us to prosper, we would need
to adapt to the changing marketplace realities. To that extent, we
are ahead of the other legacy carriers that are still in the early
phases of transformation," said Mr. Baldanza.
Mr. Baldanza added that certain key elements of the Transformation
Plan are in place. "We have increased the number of markets where
we offer low GoFares, introduced a February schedule that offers
25 new routes and 230 more daily departures, and we are in the
process of significantly enhancing our Web site, usairways.com,
for added convenience, reliability, and reduced distribution
costs," said Mr. Baldanza.
The mainline cost per available seat mile (CASM), excluding fuel
and unusual items, of 9.74 cents for the third quarter 2004, was a
2.3 percent increase over the same period in 2003.
US Airways' operational performance slipped during the third
quarter, in part due to an unusual hurricane season, severe summer
storm activity in the East, and an EDS driven computer malfunction
in August that caused flight delays and cancellations. Lost
revenue and operational costs resulting from the hurricanes is
estimated to have cost the company at least $20 million. For the
quarter, US Airways mainline operations completed 97.3 percent of
its flights, with 80.7 percent of those flights arriving on time.
The cost of aviation fuel per gallon, including taxes, for the
third quarter 2004 was 111.5 cents (106.1 cents excluding taxes),
up 29 percent from the same period in 2003. Fuel hedging benefits,
which partially mitigated the dramatic increase in fuel price,
improved results by $38 million, or 16.4 cents per gallon.
Despite the company's best efforts to mitigate the impact, the
sustained high price of fuel and the lack of any relief from
record prices continue to have a negative impact on cash flow.
Lakefield said that senior management has been tasked with
carefully reviewing all aspects of operations in order to further
conserve cash and will take appropriate action as necessary in
order to remain in compliance with financing agreements.
Substantially all of the company's unrestricted cash (includes
cash, cash equivalents and short-term investments), constitutes
cash collateral under the Air Transportation Stabilization Board
(ATSB) loan agreement. As of Sept. 30, 2004, $757 million of cash
collateral was available for the company's use, subject to certain
limitations, under a cash collateral agreement with the ATSB and
approved by the Bankruptcy Court. The cash collateral agreement
has been extended through Jan. 14, 2005. Additionally, on
Sept. 30, 2004, restricted cash was $733 million, for a total cash
position of $1.49 billion. This compares to a total cash position
of $1.73 billion at June 30, 2004, which included $975 million of
unrestricted cash.
Other notable developments:
* Announced more details of the Transformation Plan with a
significant restructuring of the flight schedule beginning
Feb. 6, 2005, to include improved aircraft utilization,
changes to hub operations, and approximately 230 more daily
flights using no additional aircraft.
* Engaged labor groups in discussions that led to pilots'
ratification of $300 million annual cost-savings agreement,
which runs through 2009, and three TWU groups' ratification
of cost savings agreements. The company has given proposals
to its other labor groups.
* Expanded breadth of Star Alliance network through new bmi
codeshare agreement. Initially, US Airways' code will be
added on bmi flights between Manchester, U.K., and both
Edinburgh and Glasgow, Scotland.
Also expanded GoCarribean network with addition of
Bahamasair codeshare and marketing agreement.
* Rolled out more low GoFares from several Pennsylvania
cities, including Pittsburgh, to seven West Coast
destinations. These fares are in addition to the GoFares
already in place to and from Philadelphia. US Airways now
has GoFares on numerous routes in Pennsylvania, Florida, and
Washington, D.C.
* Continued adding gate boarding pass scanners for expedited
boarding and passenger convenience. Scanners now are
available at 19 airports in the U.S., with further expansion
planned in 2005. US Airways anticipates adding more than 75
self-service kiosks by the end of the year for easier check-
in. 489 kiosks are currently deployed in 84 cities.
* Introduced a service fee for customers who desire
personalized reservations ticketing assistance. The fee
applies for tickets purchased by calling US Airways' toll-
free reservations or visiting US Airways' airport and city
ticket counters. Shuttle tickets are exempt from the fee.
US Airways Group, Inc. and its domestic subsidiaries filed
voluntary petitions for reorganization under Chapter 11 of the
U.S. Bankruptcy Code on Sept. 12, 2004, providing the company the
opportunity to implement its Transformation Plan built on lower
costs, a simplified fare structure, and expanded service.
The court granted US Airways interim relief from the company's
collective bargaining agreements with the Association of Flight
Attendants (AFA), Communications Workers of America (CWA), and the
International Association of Machinists and Aerospace Workers
(IAM) on Oct. 15, 2004, and approved the company's new agreements
with ALPA and the TWU on Oct. 26, 2004.
US Airways will not hold a third quarter results conference call.
Headquartered in Arlington, Virginia, US Airways' primary business
activity is the ownership of the common stock of:
* US Airways, Inc.,
* Allegheny Airlines, Inc.,
* Piedmont Airlines, Inc.,
* PSA Airlines, Inc.,
* MidAtlantic Airways, Inc.,
* US Airways Leasing and Sales, Inc.,
* Material Services Company, Inc., and
* Airways Assurance Limited, LLC.
Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors
in their restructuring efforts. In the Company's second
bankruptcy filing, it lists $8,805,972,000 in total assets and
$8,702,437,000 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.
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