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.

                          *********

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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,
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are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
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insolvent balance sheets whose shares trade higher than $3 per
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For copies of court documents filed in the District of Delaware,
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of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                          *********

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

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

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

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