/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/050108.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, January 8, 2005, Vol. 9, No. 6 Headlines ADELPHIA COMMS: Posts $47.3 Million Net Loss in November 2004 AVADO BRANDS: Posts $2.1 Million Net Loss in November 2004 ROMAN CATHOLIC: Tucson Files October 2004 Monthly Operating Report CENTURY/ML: Earns $1.6 Million of Net Income in November 2004 COVANTA WTE: Posts $993,890 Net Loss in October 2004 COVANTA: Liquidating Debtors' Post-Confirmation Quarterly Report DII INDUSTRIES: Posts $122 Million Net Loss in October 2004 DII INDUSTRIES: Posts $287 Million Net Loss in November 2004 DII/KBR: Mid Valley's October 2004 Monthly Operating Report DII/KBR: Mid-Valley Inc.'s November 2004 Monthly Operating Report DII/KBR: Kellogg Brown & Root Earns $36.1 Million in Oct. 2004 DII/KBR: Kellogg Brown & Root Earns $17.6 Million in Nov. 2004 DII/KBR: KBR Technical Posts $279,000 Net Loss in October 2004 DII/KBR: KBR Technical Posts $768,000 Net Loss in November 2004 DII/KBR: KBR Engineering's October 2004 Monthly Operating Report DII/KBR: KBR Engineering's November 2004 Monthly Operating Report DII/KBR: KBR International Posts $898,000 Net Income in Oct. 2004 DII/KBR: KBR International Posts $450,000 Net Income in Nov. 2004 DII/KBR: KBR (Panama) Posts $1.6 Million Net Income in October DII/KBR: KBR (Panama) Posts $4.06 Million in November 2004 DII/KBR: BPM Minerals Earns $1.1 Million of Net Income in October DII/KBR: BPM Minerals Earns $467,000 of Net Income in November FGI GROUP: Files November 2004 Monthly Operating Report FOOTSTAR INC: Earns $5.7 Million of Net Income in November FRESH CHOICE: Posts $407,214 Net Loss for Period Ended Nov. 28 HAWAIIAN AIRLINES: November 2004 Net Loss Widens to $2.9 Million INTERSTATE BAKERIES: Operating Report Ended November 13, 2004 KAISER: Earns $1.6 Million of Net Income in November 2004 MIRANT CORP: Posts $61.3 Million Net Loss for October 2004 MIRANT: MAGi Posts $84 Million Net Loss for October 2004 RELIANCE GROUP: Posts $285,000 Net Loss in November 2004 TRENWICK AMERICA: Earns $12.6 Million of Net Income in October TRENWICK AMERICA: Posts $1.3 Million of Net Loss in November UAL CORP: Posts $87.5 Million Net Loss for November 2004 WINSTAR COMMS: Releases October 2004 Monthly Operating Report ********* ADELPHIA COMMS: Posts $47.3 Million Net Loss in November 2004 ------------------------------------------------------------- On Dec. 23, 2004, Adelphia Communications Corporation and certain other debtor-in-possession subsidiaries of the Company filed their unaudited consolidated Monthly Operating Report for the month of November 2004 with the United States Bankruptcy Court for the Southern District of New York. Adelphia Communications Corporation, et al. Unaudited Consolidated Balance Sheet As of November 30, 2004 (Dollars in thousands) ASSETS Cash and cash equivalents $293,151 Restricted cash 5,121 Subscriber receivables - net 130,566 Other current assets 265,828 ----------- Total current assets 694,666 Restricted cash 9,545 Investments 25,240 Intercompany receivables 27,633,084 Related party receivables 1,786,272 Property, plant and equipment - net 6,889,833 Intangible assets - net 15,295,819 Other noncurrent assets - net 196,060 ----------- Total Assets $52,530,519 =========== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $117,191 Subscriber advance payments and deposits 32,567 Accrued and other liabilities 235,838 Current portion of parent and subsidiary debt 674,193 ----------- Total current liabilities 1,059,789 Accrued and other liabilities 170,364 Deferred income taxes 2,004,762 Intercompany payables 590,774 Related party payables 164,619 ----------- Total noncurrent liabilities 2,930,519 Liabilities subject to compromise 46,081,628 ----------- Total liabilities 50,071,936 Minority interests 534,725 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 (4,543,945) Treasury stock, at cost (149,401) ----------- Total 4,770,014 Amounts due from Rigas family entities (2,846,156) ----------- Total stockholders' equity 1,923,858 ----------- Total liabilities and stockholders' equity $52,530,519 =========== Adelphia Communications Corporation, et al. Unaudited Consolidated Statements of Operations Month Ended November 30, 2004 (Dollars in thousands) Revenue $331,256 Cost and expenses: Direct operating and programming 211,786 Selling, general and administrative 23,661 Depreciation and amortization 87,488 Impairment of long-lived and other assets - Non-recurring professional fees 9,383 ----------- Operating income (loss) before reorg expenses (1,062) Reorganization expenses due to bankruptcy 6,551 ----------- Operating loss (7,613) Other income (expense): Interest expense (40,564) Equity in losses of affiliates -- net (187) Minority interest in losses (earnings) of subsidiaries 787 Other-than-temporary impairment of investments - Other 265 ----------- Total (39,699) ----------- Net loss before income taxes (47,312) Income tax benefit - ----------- Net loss from continuing operations (47,312) Discontinued operations - ----------- Net loss applicable to common stockholders ($47,312) =========== Adelphia Communications Corporation, et al. Unaudited Consolidated Statements of Cash Flows Month Ended November 30, 2004 (Dollars in thousands) Cash flows from operating activities: Net loss ($47,312) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 87,488 Amortization of bank financing costs 4,522 Impairment of long-lived and other assets - Other-than-temporary impairment of investmen - Minority interest in earnings (losses) of subsidiaries (787) Equity in losses of affiliates - net 187 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 6,551 Non-recurring professional fees 6,947 Change in assets and liabilities: Subscriber receivables - net (2,396) Other assets - net (8,304) Accounts payable 16,354 Subscriber advance payments and deposits (3,564) Accrued interest and other liabilities (28,176) Liabilities subject to compromise 308 Intercompany receivables and payables - net 6,574 ----------- Net cash provided by (used in) operations before payment of reorganization expenses 38,392 Reorganization expenses paid during the period (9,221) ----------- Net cash provided by (used in) operating activities 29,171 Cash flows from investing activities: Expenditures for property, plant and equipment (41,385) Cash paid for acquisitions - Changes in restricted cash (17) Proceeds on asset sales - Investment distributions and contributions - Related party receivables and payables - net (3,428) ----------- Net cash used in investing activities (44,830) Cash flows from financing activities: Proceeds from debt - Payments of debt (14,475) Payment of bank financing costs - ----------- Net cash provided by financing activities (14,475) Change in cash and cash equivalents cash (30,134) Cash, beginning of period 323,285 ----------- Cash, end of period $293,151 =========== Full-text copies of Adelphia's November 2004 Monthly Operating Reports were delivered to the Securities and Exchange Commission and are available at no charge at: http://www.sec.gov/Archives/edgar/data/796486/000104746904038315/a2149181zex -99_1.htm 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. AVADO BRANDS: Posts $2.1 Million Net Loss in November 2004 ---------------------------------------------------------- Avado Brands, Inc., the owner and operator of the Don Pablo's and Hops restaurant chains, delivered its November 2004 monthly operating report to the U.S. Bankruptcy Court for the Northern District of Texas. For the period ended Nov. 21, 2004, Don Pablo's reported $835,000 of net income, Hops reported a net loss of $189,000 and $2,702,000 of net losses at the corporate level resulted in a consolidated net loss of $2,056,000. A full-text copy of Avado Brands, Inc.'s November Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/849101/000084910104000036/mornov.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 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. ROMAN CATHOLIC: Tucson Files October 2004 Monthly Operating Report ------------------------------------------------------------------ The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole (Unaudited) Statement of Financial Condition As of October 31, 2004 ASSETS Total Diocese-Owned ----- ------------- Cash on hand $1,500 $1,500 Cash in Banks 1,902,955 1,902,955 Cash Equivalents 6,465,679 3,737,276 Accounts receivable, net 505,510 505,510 Grants receivable 411,000 411,000 Pledges receivable 7,000 7,000 A/R held in trust for others 882,761 - Prepaid expenses & other assets 343,469 343,469 Investments in businesses 2,067,039 2,067,039 Corp. & Gov't. bond investments 906,216 556,095 Investment in BPIC 80,850 80,850 Notes receivable, net 1,793,225 331,486 Assets securing 2002 settlement 3,000,000 3,000,000 Construction in progress 48,867 48,867 Land, buildings, and equipment 536,993 536,993 Assets held for sale 60,226 60,226 Land held for future parish sites 817,460 817,460 -------------- -------------- $19,830,750 $14,407,726 ============== ============== LIABILITIES AND NET ASSETS Liabilities: Accounts payable - post 149,561 149,561 Accounts payable - pre 26,561 26,561 Accrued expenses - post 54,799 53,528 Accrued expenses - pre 157,682 157,682 Accrued insurance claims 395,228 395,228 Unsecured long-term debt - pre 2,061,455 2,061,455 Unsecured long-term debt - post 100,000 100,000 Unrestricted parish deposits 6,965,992 6,962,867 Restricted parish deposits 3,654,228 - Secured long-term debt 2,562,130 2,562,130 Custodial funds 1,764,400 - -------------- -------------- 17,892,036 12,469,012 -------------- -------------- Net Assets: Unrestricted/temporarily restricted 29,826 29,826 Permanently restricted 1,908,888 1,908,888 -------------- -------------- Total liabilities & net assets $19,830,750 14,407,726 ============== ============== The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole Statement of Operations and Charges in Net Assets October 1, 2004 through October 31, 2004 Revenues Contributions, grants and bequests $78,297 Chancery assessment 137,998 Priests salary subsidy 18,530 Fees for services 43,850 Advertising revenue 11,047 Retreat fees 28,326 Rental Income 4,397 Insurance 60,256 Investment Income 19,375 Miscellaneous 1,238 -------------- Total Support & Revenue 403,313 Expense Program Services: Archives 1,472 Catholic Commitments & Social Services 13,194 Evangelization & Hispanic Ministry 6,037 Catechesis Office 9,839 Formation Office 8,022 Department of Catholic Schools 26,899 Clergy, religious & seminarian advancement 54,193 Parish Assistance 19,486 Catholic Social Mission 4,221 Supporting Services: Office of Bishop Emeritus 2,852 Offices of the Bishop, et al. 54,913 Office of Women Religious 1,740 General & Administrative 4,482 Fiscal & Employee Services 44,491 Office of Child, Adolescent, et. al Protection 10,211 Communications & Community Relations 22,969 Property Management 37,286 Insurance Administration 23,867 Reorganization 105,029 Imputed interest on settlement 14,095 Provision for doubtful accounts 5,833 Depreciation 3,705 -------------- Total Expenses 474,836 -------------- Excess (deficiency) of revenues over expenses ($71,523) ============== The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole Current Month's Receipts and Disbursements October 1, 2004 through October 31, 2004 Cash and Bank Balance: Beginning of Month $1,709,558 Receipts Cash Sales 100,281 Accounts Receivable -- Prepetition 267,572 Accounts Receivable -- Postpetition 245,276 Loans and Advances 100,000 Sale of Assets 0 Transfers in from other accounts 114,566 Other -- Custodial Funds 421,110 Other -- Credit ADJ 522 Voided Checks - -------------- Total Receipts 1,249,328 Disbursements: Business -- Ordinary Operations 542,450 Capital Improvements 1,449 Prepetition Debt 0 Transfers to other DIP Accounts 114,566 Other -- Custodial Funds 397,216 Other -- Check Order 0 Reorganization Expenses: Attorney Fees 0 Accountant Fees 0 Other Professional Fees 0 U.S. Trustee Quarterly Fee 250 Court Costs 0 -------------- Total Disbursements 1,055,931 -------------- Cash Bank Balance -- End of Month $1,902,955 ============== The Roman Catholic Church of the Diocese of Tucson filed for chapter 11 protection (Bankr. D. Ariz. Case No. 04-04721) on September 20, 2004, and delivered a plan of reorganization to the Court on the same day. Susan G. Boswell, Esq., Kasey C. Nye, Esq., at Quarles & Brady Streich Lang LLP, represent the Tucson Diocese. The Archdiocese of Portland in Oregon filed for chapter 11 protection (Bankr. Ore. Case No. 04-37154) on July 6, 2004. Thomas W. Stilley, Esq. and William N. Stiles, Esq. of Sussman Shank LLP represent the Portland Archdiocese in its restructuring efforts. Portland's Schedules of Assets and Liabilities filed with the Court on July 30, 2004, the Portland Archdiocese reports $19,251,558 in assets and $373,015,566 in liabilities. (Catholic Church Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., 215/945-7000) CENTURY/ML: Earns $1.6 Million of Net Income in November 2004 ------------------------------------------------------------- Century-ML Cable Venture (Debtor-In-Possession) Unaudited Balance Sheet As of November 30, 2004 (Dollars in thousands) ASSETS Cash and cash equivalents $18,475 Subscriber receivables - net 322 Investment in Century-ML Corporation 132,703 Related party receivables 231 Other current assets 289 -------- Total current assets 152,020 Property, plant and equipment - net 6,042 Intangible assets - net 1,528 -------- Total assets $159,590 ======== LIABILITIES AND STOCKHOLDERS' EQUITY Subscriber advance payments and deposits $68 Accrued expenses and other liabilities 2,122 Intercompany payables 3,007 -------- Total current liabilities 5,197 -------- Long-term accrued and other liabilities 170 Deferred income taxes 45 -------- Total non-current liabilities 215 Liabilities subject to compromise: Accounts payable 20 Accrued expenses and other liabilities 1,281 Intercompany payables 10,883 -------- Total liabilities subject to compromise 12,184 -------- Total liabilities 17,596 -------- Partners' equity: Partners' contributions 56,800 Partners' retained earnings 85,194 -------- Total partners' equity 141,994 -------- Total liabilities and partners' equity $159,590 ======== Century-ML Cable Venture (Debtor-In-Possession) Unaudited Statement of Operations For the Month Ended November 30, 2004 (Dollars in thousands) Revenue $1,096 Cost and expenses: Direct operating and programming 509 Selling, general and administrative 44 Management fees 46 Non-recurring professional fees - Depreciation 68 -------- Operating income before reorganization expenses due to bankruptcy 429 Reorganization expenses due to bankruptcy 63 -------- Operating income 366 Interest income - net 7 Equity in net income of Century-ML Cable Corporation - net of taxes 1,566 -------- Income before income taxes 1,939 Income tax expense (326) -------- Net income $1,613 ======== Century-ML Cable Venture (Debtor-In-Possession) Unaudited Statement of Cash Flows For the Month Ended November 30, 2004 (Dollars in thousands) Cash flow from operating activities: Net income $1,613 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 68 Reorganization expenses due to bankruptcy 63 Non-recurring professional fees - Equity in net income of Century-ML Cable Corporation - net of taxes (1,566) Change in assets and liabilities: Subscriber receivables - net 63 Prepaid expenses and other assets - net 25 Accounts payable - Subscriber advance payments and deposits (9) Accrued expenses and other liabilities 394 Intercompany receivables and payables - net 824 -------- Net cash provided by operating activities 1,475 -------- Cash flows from investing activities: Expenditures from property, plant and equipment (76) -------- Net cash used in investing activities (76) -------- Change in cash and cash equivalents 1,399 Cash and cash equivalents, beginning of period 17,076 -------- Cash and cash equivalents, end of period $18,475 ======== 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. COVANTA WTE: Posts $993,890 Net Loss in October 2004 ---------------------------------------------------- The WTE Debtors are: -- Covanta Warren Energy Resource Co., L.P., -- Covanta Warren Holdings I, Inc., -- Covanta Warren Holdings II, Inc., and -- Covanta Lake II, Inc. WTE Debtors Consolidated Balance Sheet As of October 31, 2004 ASSETS Cash $2,517,412 Inventory - Accounts receivable 37,972,707 Land - Machinery, fixtures and equipment 96,985,164 Restricted funds 8,763,667 Other current assets 6,604 Other assets 3,393,556 ------------ Total assets $149,639,110 ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Postpetition Liabilities: Subject to postpetition collateral or financing order - Advances from parent and affiliates $17,764,806 Accounts payable and other liabilities 8,808,632 ------------ Total postpetition liabilities 26,573,338 Prepetition Liabilities: Project Debt 78,557,452 Advances from parent and affiliates 37,185,761 Liabilities Subject to Compromise 3,526,638 Taxes/Others - ------------ Total Prepetition Liabilities 119,269,851 ------------ Shareholders' Equity: Capital stock - Capital surplus 5,820 Retained earnings - prepetition 15,866,416 Retained earnings - postpetition (12,076,315) ------------ Total Shareholders' Equity 3,795,921 ------------ Total Liabilities and Shareholders' Equity $149,639,110 ============ WTE Debtors Consolidated Statements of Operations From October 1 to October 31, 2004 INCOME: Service, electric and construction revenue $1,215,076 Waste-to-Energy project debt revenue 982,604 ------------ Total Income 2,197,680 EXPENSES: Operating and construction costs 2,305,161 Waste-to-Energy project debt expense 386,282 Depreciation and amortization expense 337,924 Other - Net - Cost allocations from parent & affiliates 160,000 Gain on sale of businesses - ------------ Total Expenses 3,189,367 ------------ NET OPERATING PROFIT/(LOSS) (991,687) Non-Operating Income/(Expense) Reorganization costs - Interest expense (2,203) ------------ Total Non-Operating Income (Expense) (2,203) Income Taxes - Income before cumulative effect of accounting Change (993,890) ------------ NET INCOME ($993,890) ============ WTE Debtors Consolidated Cash Flow Statements From October 1 to October 31, 2004 Net income ($993,890) Depreciation and amortization 316,161 Receivables (1,529,353) Other assets 45,098 Payables and accrued expenses 1,459,863 Other liabilities 1,414 Property, plant and equipment expenditures (230,387) Restricted funds, net 5,460,076 (Repayments) issuance of debt, net (6,111,441) Advances from parents & affiliates 430,891 ------------ (1,151,568) Cash, beginning balance 3,668,980 ------------ Cash, ending balance $2,517,412 ============ Headquartered in Fairfield, New Jersey, Covanta Energy Corporation -- http://www.covantaenergy.com/-- is a publicly traded holding company whose subsidiaries develop, own or operate power generation facilities and water and wastewater facilities in the United States and abroad. The Company filed for Chapter 11 protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826). Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary, Gottlieb, Steen & Hamilton represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $3,280,378,000 in assets and $3,031,462,000 in liabilities. On March 10, 2004, Covanta Energy Corporation and its core subsidiaries emerged from chapter 11 as a wholly owned subsidiary of Danielson Holding Corporation. Some of Covanta's non-core subsidiaries have liquidated under separate chapter 11 plans. (Covanta Bankruptcy News, Issue No. 72; Bankruptcy Creditors' Service, Inc., 215/945-7000) COVANTA: Liquidating Debtors' Post-Confirmation Quarterly Report ---------------------------------------------------------------- Liquidating Debtors Post-Confirmation Quarterly Report For Quarter Ending September 2004 Disbursements Disbursements Debtor Under the Plan to Professionals Total ------ -------------- ---------------- ----- Ogden New York Services, Inc. $302,760 $81,240 $384,000 Ogden Constructors, Inc. 4,077 0 4,077 Covanta Tulsa, Inc. 916,873 0 916,873 Headquartered in Fairfield, New Jersey, Covanta Energy Corporation -- http://www.covantaenergy.com/-- is a publicly traded holding company whose subsidiaries develop, own or operate power generation facilities and water and wastewater facilities in the United States and abroad. The Company filed for Chapter 11 protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826). Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary, Gottlieb, Steen & Hamilton represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $3,280,378,000 in assets and $3,031,462,000 in liabilities. On March 10, 2004, Covanta Energy Corporation and its core subsidiaries emerged from chapter 11 as a wholly owned subsidiary of Danielson Holding Corporation. Some of Covanta's non-core subsidiaries have liquidated under separate chapter 11 plans. (Covanta Bankruptcy News, Issue No. 72; Bankruptcy Creditors' Service, Inc., 215/945-7000) DII INDUSTRIES: Posts $122 Million Net Loss in October 2004 ----------------------------------------------------------- DII Industries, LLC Unaudited Balance Sheet As of October 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents $13,605 Escrow - prepetition payments 148,262 Investment account with Parent 209,000 Trade receivables - Unbilled work on incomplete contracts - Other receivables 60 Inventories - Right to Halliburton Shares 2,143,071 Insurance for asbestos & silica-related PI claims 873,072 Other current assets 412,689 ---------- Total current assets 3,799,759 Net property, plant and equipment - Investments in consolidated subsidiaries 1,896,939 Equity in related companies - Intercompany with related companies (723,526) Goodwill, net - Non-current deferred income taxes 345,000 Insurance for asbestos & silica-related PI claims 487,889 Other assets 11 ---------- Total assets $5,806,072 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - DIP Financing - Current maturities of long-term debt - Accounts payable $1,318 Accrued employee compensation and benefits (1) Accrued interest payable 8,393 Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims 2,418,028 Other current liabilities 11,000 ---------- Total current liabilities 2,438,738 Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims 2,179,721 Minority interest in consolidated subsidiaries - Other liabilities 6,088 ---------- Total liabilities 4,624,547 Total shareholder's equity 1,181,525 ---------- Total liabilities and shareholder's equity $5,806,072 ========== DII Industries, LLC Unaudited Income Statement Month ended October 31, 2004 (in thousands) Revenues - Operating costs and expenses ($55) ---------- Operating income/(loss) 55 Interest expense - Interest income 5,576 Foreign currency gains (losses) 324 Other non-operating income - net - Equity in earnings/(loss) of subsidiaries 25,042 ---------- Income/(loss) before taxes & minority interest 30,997 Income tax benefit/(provision) (1,652) ---------- Income/(loss) from continuing operations 29,345 ---------- Income/(loss) from discontinued operations (151,484) ---------- Net Income/(loss) ($122,139) ========== DII INDUSTRIES: Posts $287 Million Net Loss in November 2004 ------------------------------------------------------------ DII Industries, LLC Unaudited Balance Sheet As of November 30, 2004 (in thousands) Assets Current Assets: Cash and equivalents $19,160 Escrow - prepetition payments 148,431 Investment account with Parent 160,000 Trade receivables - Unbilled work on incomplete contracts - Other receivables 55 Inventories - Right to Halliburton Shares 2,432,479 Insurance for asbestos & silica-related PI claims 860,514 Other current assets 413,195 ---------- Total current assets 4,033,834 Net property, plant and equipment - Investments in consolidated subsidiaries 2,151,302 Equity in related companies - Intercompany with related companies (662,869) Goodwill, net - Non-current deferred income taxes 345,000 Insurance for asbestos & silica-related PI claims 487,889 Other assets 11 ---------- Total assets $6,355,167 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - DIP Financing - Current maturities of long-term debt - Accounts payable $5,702 Accrued employee compensation and benefits 1 Accrued interest payable 8,601 Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims 2,418,028 Other current liabilities 11,000 ---------- Total current liabilities 2,443,332 Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims 2,469,129 Minority interest in consolidated subsidiaries - Other liabilities 6,364 ---------- Total liabilities 4,918,825 Total shareholder's equity 1,436,342 ---------- Total liabilities and shareholder's equity $6,355,167 ========== DII Industries, LLC Unaudited Income Statement Month ended November 30, 2004 (in thousands) Revenues - Operating costs and expenses $201 ---------- Operating income/(loss) (201) Interest expense - Interest income 5,366 Foreign currency gains (losses) 583 Other non-operating income - net - Equity in earnings/(loss) of subsidiaries 1,966 ---------- Income/(loss) before taxes & minority interest 7,714 Income tax benefit/(provision) (1,599) ---------- Income/(loss) from continuing operations 6,115 ---------- Income/(loss) from discontinued operations (293,104) ---------- Net Income/(loss) ($286,989) ========== DII/KBR: Mid Valley's October 2004 Monthly Operating Report ----------------------------------------------------------- Mid-Valley, Inc. Unaudited Balance Sheet As of October 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents - Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables - Inventories - Other current assets - ---------- Total current assets - Net property, plant and equipment - Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies - Intercompany with Parent $40,311 Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 558 ---------- Total assets $40,869 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable - Accrued employee compensation and benefits - Accrued interest payable - Advanced billings on uncompleted contracts $308 Asbestos and silica-related PI claims - Other current liabilities 1,565 ---------- Total current liabilities 1,873 Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities 671 ---------- Total liabilities 2,544 Total shareholder's equity 38,325 ---------- Total liabilities and shareholder's equity $40,869 ========== Mid-Valley, Inc., reports no income for October 2004. DII/KBR: Mid-Valley Inc.'s November 2004 Monthly Operating Report ----------------------------------------------------------------- Mid-Valley, Inc. Unaudited Balance Sheet As of November 30, 2004 (in thousands) Assets Current Assets: Cash and equivalents - Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables - Inventories - Other current assets - ---------- Total current assets - Net property, plant and equipment - Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies - Intercompany with Parent $40,275 Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 558 ---------- Total assets $40,833 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable - Accrued employee compensation and benefits - Accrued interest payable - Advanced billings on uncompleted contracts $308 Asbestos and silica-related PI claims - Other current liabilities 1,541 ---------- Total current liabilities 1,849 Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities 671 ---------- Total liabilities 2,520 Total shareholder's equity 38,313 ---------- Total liabilities and shareholder's equity $40,833 ========== Mid-Valley, Inc. Unaudited Income Statement Month ended November 30, 2004 (in thousands) Revenues - Operating costs and expenses $11 ---------- Operating income (11) Interest expense - Interest income - Foreign currency gains (losses) - Other non-operating income - net - ---------- Income before taxes & minority interest (11) Provision for income tax - ---------- Net income/(loss) ($11) ========== DII/KBR: Kellogg Brown & Root Earns $36.1 Million in Oct. 2004 -------------------------------------------------------------- Kellogg Brown & Root, Inc. Unaudited Balance Sheet As of October 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents ($35,077) Escrow - prepetition payments - Trade receivables 120,469 Unbilled work on uncompleted contracts 123,012 Other receivables 27,407 Inventories 14,495 Other current assets 42,918 ---------- Total current assets 293,224 Net property, plant and equipment 42,075 Investments in consolidated subsidiaries 248,679 Equity in related companies 55,786 Intercompany with related companies (27,634) Intercompany with Parent 530,607 Goodwill, net 171,213 Non-current deferred income taxes 255,000 Insurance for asbestos & silica-related PI claims - Right to Halliburton shares - Other assets 48,434 ---------- Total assets $1,617,384 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $71,552 Accrued employee compensation and benefits 61,923 Accrued interest payable - Advanced billings on uncompleted contracts 214,917 Asbestos and silica-related PI claims 74,337 Other current liabilities 248,504 ---------- Total current liabilities 671,233 Long-term debt - Employee compensation and benefits 51,230 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities 85,459 ---------- Total liabilities 807,922 Total shareholder's equity 809,462 ---------- Total liabilities and shareholder's equity $1,617,384 ========== Kellogg Brown & Root, Inc. Unaudited Income Statement Month ended October 31, 2004 (in thousands) Revenues $113,809 Operating costs and expenses 77,171 ---------- Operating income 36,638 Interest expense (3,606) Interest income 193 Foreign currency gains (losses) (398) Other non-operating income - net - ---------- Income before taxes and minority interest 32,827 Income tax benefit/(provision) 3,322 ---------- Income from continuing operations 36,149 Loss from discontinued operations - ---------- Net Income $36,149 ========== DII/KBR: Kellogg Brown & Root Earns $17.6 Million in Nov. 2004 -------------------------------------------------------------- Kellogg Brown & Root, Inc. Unaudited Balance Sheet As of November 30, 2004 (in thousands) Assets Current Assets: Cash and equivalents ($488,268) Escrow - prepetition payments - Trade receivables 122,631 Unbilled work on uncompleted contracts 77,298 Other receivables 30,970 Inventories 13,953 Other current assets 43,320 ---------- Total current assets (200,096) Net property, plant and equipment 33,560 Investments in consolidated subsidiaries 248,679 Equity in related companies 58,890 Intercompany with related companies (19,072) Intercompany with Parent 980,202 Goodwill, net 171,213 Non-current deferred income taxes 255,000 Insurance for asbestos & silica-related PI claims - Right to Halliburton shares - Other assets 57,456 ---------- Total assets $1,585,832 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $72,144 Accrued employee compensation and benefits 62,532 Accrued interest payable - Advanced billings on uncompleted contracts 182,496 Asbestos and silica-related PI claims 74,337 Other current liabilities 229,946 ---------- Total current liabilities 621,455 Long-term debt - Employee compensation and benefits 52,425 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities 84,704 ---------- Total liabilities 758,584 Total shareholder's equity 827,248 ---------- Total liabilities and shareholder's equity $1,585,832 ========== Kellogg Brown & Root, Inc. Unaudited Income Statement Month ended November 30, 2004 (in thousands) Revenues $117,692 Operating costs and expenses 80,958 ---------- Operating income 36,734 Interest expense (4,421) Interest income 267 Foreign currency gains (losses) (2,120) Other non-operating income - net - ---------- Income before taxes and minority interest 30,460 Income tax benefit/(provision) (12,827) ---------- Income from continuing operations 17,633 Loss from discontinued operations - ---------- Net Income $17,633 ========== DII/KBR: KBR Technical Posts $279,000 Net Loss in October 2004 -------------------------------------------------------------- KBR Technical Services, Inc. Unaudited Balance Sheet As of October 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents $312 Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables 538 Inventories - Other current assets 886 ---------- Total current assets 1,736 Net property, plant and equipment 23,864 Investments in consolidated subsidiaries 1,555 Equity in related companies - Intercompany with related companies 10,060 Intercompany with Parent - Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $37,215 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $118 Accrued employee compensation and benefits 21,942 Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims - Other current liabilities 917 ---------- Total current liabilities 22,977 Long-term debt - Employee compensation and benefits 2,563 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 25,540 Total shareholder's equity 11,675 ---------- Total liabilities and shareholder's equity $37,215 ========== KBR Technical Services, Inc. Unaudited Income Statement Month ended October 31, 2004 (in thousands) Revenues - Operating costs and expenses $393 ---------- Operating income/(loss) (393) Interest expense 115 Interest income - Foreign currency gains (losses) (1) Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest (279) Income tax benefit - ---------- Net Income/(loss) ($279) ========== DII/KBR: KBR Technical Posts $768,000 Net Loss in November 2004 --------------------------------------------------------------- KBR Technical Services, Inc. Unaudited Balance Sheet As of November 30, 2004 (in thousands) Assets Current Assets: Cash and equivalents $312 Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables 331 Inventories - Other current assets - ---------- Total current assets 643 Net property, plant and equipment 25,420 Investments in consolidated subsidiaries 45 Equity in related companies - Intercompany with related companies 12,755 Intercompany with Parent - Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $38,863 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $791 Accrued employee compensation and benefits 22,416 Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims - Other current liabilities 1,081 ---------- Total current liabilities 24,288 Long-term debt - Employee compensation and benefits 2,558 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 26,846 Total shareholder's equity 12,017 ---------- Total liabilities and shareholder's equity $38,863 ========== KBR Technical Services, Inc. Unaudited Income Statement Month ended November 30, 2004 (in thousands) Revenues - Operating costs and expenses $654 ---------- Operating income/(loss) (654) Interest expense 113 Interest income - Foreign currency gains (losses) (1) Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest (768) Income tax benefit - ---------- Net Income/(loss) ($768) ========== DII/KBR: KBR Engineering's October 2004 Monthly Operating Report ---------------------------------------------------------------- KBR Engineering Corp. Unaudited Balance Sheet As of October 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents - Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables - Inventories - Other current assets - ---------- Total current assets - Net property, plant and equipment - Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies $77 Intercompany with Parent - Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $77 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable - Accrued employee compensation and benefits - Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims - Other current liabilities - ---------- Total current liabilities - Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities - Total shareholder's equity 77 ---------- Total liabilities and shareholder's equity $77 ========== KBR Engineering Corp. reports no income for October 2004. DII/KBR: KBR Engineering's November 2004 Monthly Operating Report ----------------------------------------------------------------- KBR Engineering Corp. Unaudited Balance Sheet As of November 30, 2004 (in thousands) Assets Current Assets: Cash and equivalents - Escrow - prepetition payments - Trade receivables - Unbilled work on uncompleted contracts - Other receivables - Inventories - Other current assets - ---------- Total current assets - Net property, plant and equipment - Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies $77 Intercompany with Parent - Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $77 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable - Accrued employee compensation and benefits - Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims - Other current liabilities - ---------- Total current liabilities - Long-term debt - Employee compensation and benefits - Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities - Total shareholder's equity 77 ---------- Total liabilities and shareholder's equity $77 ========== KBR Engineering Corp. reports no income for November 2004. DII/KBR: KBR International Posts $898,000 Net Income in Oct. 2004 ----------------------------------------------------------------- KBR International, Inc. Unaudited Balance Sheet As of October 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents $39,264 Escrow - prepetition payments - Trade receivables 27,363 Unbilled work on uncompleted contracts 18,826 Other receivables 21,299 Inventories - Other current assets 6,035 ---------- Total current assets 112,787 Net property, plant and equipment 295 Investments in consolidated subsidiaries 28,162 Equity in related companies (325) Intercompany with related companies - Intercompany with Parent (52,039) Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 679 ---------- Total assets $89,559 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $12,024 Accrued employee compensation and benefits 217 Accrued interest payable - Advanced billings on uncompleted contracts 11,705 Asbestos and silica-related PI claims - Other current liabilities 13,156 ---------- Total current liabilities 37,102 Long-term debt - Employee compensation and benefits 604 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities 455 ---------- Total liabilities 38,161 Total shareholder's equity 51,398 ---------- Total liabilities and shareholder's equity $89,559 ========== KBR International, Inc. Unaudited Income Statement Month ended October 31, 2004 (in thousands) Revenues $131,143 Operating costs and expenses 131,112 ---------- Operating income/(loss) 31 Interest expense - Interest income 1,210 Foreign currency gains (losses) 198 Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest 1,439 Income tax benefit/(provision) (541) ---------- Net Income/(loss) $898 ========== DII/KBR: KBR International Posts $450,000 Net Income in Nov. 2004 ----------------------------------------------------------------- KBR International, Inc. Unaudited Balance Sheet As of November 30, 2004 (in thousands) Assets Current Assets: Cash and equivalents $52,266 Escrow - prepetition payments - Trade receivables 19,123 Unbilled work on uncompleted contracts 20,066 Other receivables 21,237 Inventories - Other current assets 2,088 ---------- Total current assets 114,780 Net property, plant and equipment 289 Investments in consolidated subsidiaries 28,165 Equity in related companies (188) Intercompany with related companies - Intercompany with Parent (58,267) Goodwill, net - Non-current deferred income taxes 133 Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 491 ---------- Total assets $85,403 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $11,000 Accrued employee compensation and benefits 212 Accrued interest payable - Advanced billings on uncompleted contracts 11,939 Asbestos and silica-related PI claims - Other current liabilities 9,681 ---------- Total current liabilities 32,832 Long-term debt - Employee compensation and benefits 618 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 33,450 Total shareholder's equity 51,953 ---------- Total liabilities and shareholder's equity $85,403 ========== KBR International, Inc. Unaudited Income Statement Month ended November 30, 2004 (in thousands) Revenues $14,616 Operating costs and expenses 13,596 ---------- Operating income/(loss) 1,020 Interest expense (487) Interest income 39 Foreign currency gains (losses) (135) Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest 437 Income tax benefit/(provision) 13 ---------- Net Income/(loss) $450 ========== DII/KBR: KBR (Panama) Posts $1.6 Million Net Income in October -------------------------------------------------------------- KBR International, Inc. (Panama) Unaudited Balance Sheet As of October 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents $39,436 Escrow - prepetition payments - Trade receivables 3,169 Unbilled work on uncompleted contracts 1,750 Other receivables 431 Inventories - Other current assets 7,062 ---------- Total current assets 51,848 Net property, plant and equipment 1,004 Investments in consolidated subsidiaries 23,865 Equity in related companies - Intercompany with related companies - Intercompany with Parent (38,094) Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 37 ---------- Total assets $38,660 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $3,913 Accrued employee compensation and benefits 3,576 Accrued interest payable - Advanced billings on uncompleted contracts 817 Asbestos and silica-related PI claims - Other current liabilities 160 ---------- Total current liabilities 8,466 Long-term debt - Employee compensation and benefits 650 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 9,116 Total shareholder's equity 29,544 ---------- Total liabilities and shareholder's equity $38,660 ========== KBR International, Inc. (Panama) Unaudited Income Statement Month ended October 31, 2004 (in thousands) Revenues $2,264 Operating costs and expenses 505 ---------- Operating income/(loss) 1,759 Interest expense (19) Interest income 2 Foreign currency gains (losses) (162) Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest 1,580 Income tax benefit/(provision) - ---------- Net Income/(loss) $1,580 ========== DII/KBR: KBR (Panama) Posts $4.06 Million in November 2004 ---------------------------------------------------------- KBR International, Inc. (Panama) Unaudited Balance Sheet As of November 30, 2004 (in thousands) Assets Current Assets: Cash and equivalents $41,364 Escrow - prepetition payments - Trade receivables 2,369 Unbilled work on uncompleted contracts 1,648 Other receivables 623 Inventories - Other current assets 6,550 ---------- Total current assets 52,554 Net property, plant and equipment 980 Investments in consolidated subsidiaries 23,865 Equity in related companies - Intercompany with related companies - Intercompany with Parent (36,931) Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets 34 ---------- Total assets $40,502 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $2,142 Accrued employee compensation and benefits 3,384 Accrued interest payable - Advanced billings on uncompleted contracts 576 Asbestos and silica-related PI claims - Other current liabilities 124 ---------- Total current liabilities 6,226 Long-term debt - Employee compensation and benefits 668 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 6,894 Total shareholder's equity 33,608 ---------- Total liabilities and shareholder's equity $40,502 ========== KBR International, Inc. (Panama) Unaudited Income Statement Month ended November 30, 2004 (in thousands) Revenues $1,467 Operating costs and expenses (2,559) ---------- Operating income/(loss) 4,026 Interest expense (42) Interest income 114 Foreign currency gains (losses) (34) Other non-operating income - net - ---------- Income/(loss) before taxes & minority interest 4,064 Income tax benefit/(provision) - ---------- Net Income/(loss) $4,064 ========== DII/KBR: BPM Minerals Earns $1.1 Million of Net Income in October ----------------------------------------------------------------- BPM Minerals, LLC Unaudited Balance Sheet As of October 31, 2004 (in thousands) Assets Current Assets: Cash and equivalents ($796) Escrow - prepetition payments - Trade receivables 6,961 Unbilled work on uncompleted contracts - Other receivables 2,134 Inventories 4,417 Other current assets 600 ---------- Total current assets 13,316 Net property, plant and equipment 9,040 Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies - Intercompany with Parent 49,397 Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $71,753 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $1,015 Accrued employee compensation and benefits 270 Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims 42,000 Other current liabilities 120 ---------- Total current liabilities 43,135 Long-term debt - Employee compensation and benefits 327 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 43,462 Total shareholder's equity 28,291 ---------- Total liabilities and shareholder's equity $71,753 ========== BPM Minerals, LLC Unaudited Income Statement Month ended October 31, 2004 (in thousands) Revenues $6,857 Operating costs and expenses 5,766 ---------- Operating income 1,091 Interest expense - Interest income - Foreign currency gains (losses) - Other non-operating income - net - ---------- Income before taxes and minority interest 1,091 Provision for income tax - ---------- Net Income $1,091 ========== DII/KBR: BPM Minerals Earns $467,000 of Net Income in November -------------------------------------------------------------- BPM Minerals, LLC Unaudited Balance Sheet As of November 30, 2004 (in thousands) Assets Current Assets: Cash and equivalents ($220) Escrow - prepetition payments - Trade receivables 6,002 Unbilled work on uncompleted contracts - Other receivables 1,507 Inventories 5,679 Other current assets 600 ---------- Total current assets 13,567 Net property, plant and equipment 9,143 Investments in consolidated subsidiaries - Equity in related companies - Intercompany with related companies - Intercompany with Parent 50,673 Goodwill, net - Non-current deferred income taxes - Insurance for asbestos and silica-related PI claims - Right to Halliburton shares - Other assets - ---------- Total assets $73,383 ========== Liabilities and Shareholder's Equity Current Liabilities: Short-term notes payable - Current maturities of long-term debt - Accounts payable $2,118 Accrued employee compensation and benefits - Accrued interest payable - Advanced billings on uncompleted contracts - Asbestos and silica-related PI claims 42,000 Other current liabilities 139 ---------- Total current liabilities 44,257 Long-term debt - Employee compensation and benefits 370 Asbestos and silica-related PI claims - Minority interest in consolidated subsidiaries - Other liabilities - ---------- Total liabilities 44,627 Total shareholder's equity 28,757 ---------- Total liabilities and shareholder's equity $73,383 ========== BPM Minerals, LLC Unaudited Income Statement Month ended November 30, 2004 (in thousands) Revenues $4,506 Operating costs and expenses 4,040 ---------- Operating income 467 Interest expense - Interest income - Foreign currency gains (losses) - Other non-operating income - net - ---------- Income before taxes and minority interest 467 Provision for income tax - ---------- Net Income $467 ========== FGI GROUP: Files November 2004 Monthly Operating Report ------------------------------------------------------- On Dec. 22, 2004, FGI Group Inc. filed a monthly operating report for Florsheim Group, Inc., et al., and its debtor-affiliates covering the period ended Nov. 30, 2004, with the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division. FGI Group reports a $967,611.65 cash balance at Nov. 30, 2004, and provides a summary of cash accounts; receipts listings; disbursements listings; loan account; statement of aged receivables and accounts payable aging; tax questionnaire; and declaration. Full-text copies of FGI Group's November 2004 Monthly Operating Reports are available at no charge at: http://www.sec.gov/Archives/edgar/data/928908/000095013704011369/c90705exv99 w1.txt Florsheim Group, Inc. (OTC BB: FLSC.OB), filed for chapter 11 protection on March 4, 2002 (Bankr. N.D. Ill. Case No. 02 B 08209) to facilitate a sale of its U.S. wholesale business and 23 retail stores to its U.S. assets to the Weyco Group, Inc. for $45.6 million in cash, subject to post closing adjustment. FOOTSTAR INC: Earns $5.7 Million of Net Income in November ---------------------------------------------------------- On Dec. 15, 2004, Footstar, Inc., and its debtor-affiliates filed with the U.S. Bankruptcy Court for the Southern District of New York their monthly operating report for the month of November 2004. The Debtors report a $5.7 million net income in $68.4 million of net sales for November 2004. At Nov. 27, 2004, Footstar, Inc.'s consolidated balance sheet shows: Total Current Assets $317,400,000 Total Assets 372,900,000 Current Liabilities 103,300,000 Total Liabilities Subject to Compromise 178,200,000 Shareholders' Equity $36,000,000 A full-text copy of Footstar, Inc.'s November 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1011308/000090951804000986/jd12-15ex_ 99.txt Headquartered in West Nyack, New York, Footstar Inc., retails family and athletic footwear. As of August 28, 2004, the Company operated 2,373 Meldisco licensed footwear departments nationwide in Kmart, Rite Aid and Federated Department Stores. The Company also distributes its own Thom McAn brand of quality leather footwear through Kmart, Wal-Mart and Shoe Zone stores. The Company and its debtor-affiliates filed for chapter 11 protection on March 3, 2004 (Bankr. S.D.N.Y. Case No. 04-22350). Paul M. Basta, Esq., at Weil Gotshal & Manges represents the Debtors in their restructuring efforts. When the Debtor filed for protection, it listed $762,500,000 in total assets and $302,200,000 in total debts. The Debtors remain in possession of their assets and properties, and continue to operate their businesses and manage their properties as debtors-in-possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. FRESH CHOICE: Posts $407,214 Net Loss for Period Ended Nov. 28 -------------------------------------------------------------- On Dec. 22, 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 Nov. 28, 2004. The Company reports a $407,214 net loss in $1,962,329 of total revenues for the period from Nov. 1, 2004 through Nov. 28, 2004. At Nov. 28, 2004, Fresh Choice, Inc.'s balance sheet shows: Current Assets $6,817,315 Total Assets 22,731,716 Current Liabilities 7,517,242 Total Prepetition Liabilities 12,493,324 Total Liabilities 21,694,656 Total Equity $1,444,273 A full-text copy of Fresh Choice, Inc.'s Monthly Operating Report for the period ended Nov. 28, 2004, is available at no charge at: http://www.sec.gov/Archives/edgar/data/893741/000115752304011692/a4789188ex9 91.txt Headquartered in Morgan Hill, California, Fresh Choice, Inc. -- 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: November 2004 Net Loss Widens to $2.9 Million ---------------------------------------------------------------- On Dec. 20, 2004, Hawaiian Airlines, the sole operating subsidiary of Hawaiian Holdings, Inc., filed its unaudited November 2004 Monthly Operating Report with the United States Bankruptcy Court for the District of Hawaii. The carrier reports a loss of $2,863,000 on $58,613,000 of revenues, compared to $1,254,000 of losses on $58,717,000 million of revenues in October 2004. For the month ending Nov. 30, 2004, Hawaiian Airlines' balance sheet showed: Total Current Assets $240,465,000 Total Assets 351,258,000 Total Current Liabilities 234,185,000 Total Liabilities 425,765,000 Liabilities Subject to Compromise 216,141,000 Shareholder's Deficit $290,648,000 A full-text copy of Hawaiian Airlines' November 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1172222/000095013604004504/file002.ht m On March 21, 2003, Hawaiian Airlines, Inc., filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Hawaii (Case No. 03-00827). 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. INTERSTATE BAKERIES: Operating Report Ended November 13, 2004 ------------------------------------------------------------- Interstate Bakeries Corporation and Subsidiaries Unaudited Consolidated Monthly Operating Report Four Weeks Ended and as of November 13, 2004 REVENUE Gross Income $259,923,936 Less Cost of Goods Sold Ingredients, Packaging, & Outside Purchasing 67,550,470 Direct & Indirect Labor 45,253,362 Overhead & Production Administration 12,290,653 ------------ Total Cost of Goods Sold 125,094,485 ------------ Gross Profit $134,829,451 ------------ OPERATING EXPENSES Owner-Draws/Salaries - Selling & Delivery Employee Salaries 64,848,215 Advertising and Marketing 121,938 Insurance (Property, Casualty, & Medical) 13,104,109 Payroll Taxes 5,190,776 Lease and Rent 4,603,301 Telephone and Utilities 1,114,321 Corporate Expense (Including Salaries) 4,602,640 Other Expenses 19,645,146 ------------ Total Operating Expenses $113,230,446 ------------ EBITDA 21,599,005 Restructuring Charges 846,998 Reorganization Professional Fees 12,763,468 Depreciation and Amortization 6,196,656 Other Income 15,005 Interest Expense 2,833,963 ------------ Operating Income (Loss) (1,027,075) Income Tax Expense (Benefit) 728,726 ------------ Net Income (Loss) ($1,755,801) ============ CURRENT ASSETS Accounts Receivable at end of period $184,619,577 Inc (Dec) in Accounts Receivable for period (5,449,007) Inventory at end of period 74,040,423 Increase (Decrease) in Inventory for period (1,122,158) Cash at end of period 77,243,579 Increase (decrease) in Cash for period 6,017,267 LIABILITIES Inc (Dec) in Liabilities Not Subject to Compromise - Inc (Dec) in Liabilities Subject to Compromise - Taxes payable: Federal Payroll Taxes 12,915,233 State/Local Payroll Taxes 3,882,303 State Sales Taxes 875,566 Real Estate and Personal Property Taxes 8,799,929 Other 5,474,272 ------------ Total Taxes Payable $31,947,303 ============ Headquartered in Kansas City, Missouri, Interstate Bakeries Corporation is a wholesale baker and distributor of fresh baked bread and sweet goods, under various national brand names, including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R), Merita(R) and Drake's(R). The Company employs approximately 32,000 in 54 bakeries, more than 1,000 distribution centers and 1,200 thrift stores throughout the U.S. The Company and seven of its debtor-affiliates filed for chapter 11 protection on September 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $1,626,425,000 in total assets and $1,321,713,000 (excluding the $100,000,000 issue of 6.0% senior subordinated convertible notes due August 15, 2014, on August 12, 2004) in total debts. KAISER: Earns $1.6 Million of Net Income in November 2004 --------------------------------------------------------- Kaiser Aluminum Corporation -- All Debtors Unaudited Balance Sheets As of November 30, 2004 (In Thousands) ASSETS Cash $51,453 Receivables: Trade 112,677 Other 13,680 --------- Total Receivables 136,357 Inventories 123,750 Prepaid expenses and other current assets 39,626 --------- Total current assets 351,186 Investments in and advances to subsidiaries 60,016 Intercompany receivables/payables, net (4,581) Property, plant, and equipment - net 214,449 Deferred income taxes - Other assets 768,965 --------- Total Assets $1,390,035 ========= LIABILITIES & STOCKHOLDERS' EQUITY Liabilities not subject to compromise: Accounts Payable $69,497 Accrued interest 917 Accrued salaries, wages and related expenses 32,833 Accrued post retirement benefit -- current 369 Other accrued liabilities 89,774 Payable to affiliates 44,492 Long term debt - current portion 1,222 --------- Total current liabilities 239,104 Long-term liabilities 22,620 Accrued postretirement benefit obligation - Long-term debt 2,212 Liabilities subject to compromise 2,871,910 Minority interests 655 Stockholders' equity: Preference stock - Common stock 791 Additional capital 538,693 Accumulated deficit - As of filing date (946,927) Accumulated deficit - Post filing date (1,329,873) Accumulated other comprehensive income (loss) (9,150) Note receivable from parent - --------- Total Liabilities & Stockholders' Equity $1,390,035 ========= Kaiser Aluminum Corporation -- All Debtors Statements of Operations For the Month Ending November 30, 2004 (In Thousands) Net Sales $109,848 Costs and expenses: Cost of products sold 91,389 Depreciation & amortization 1,815 Selling, administrative, R&D and general 9,090 Other operating charges (benefits), net 188 --------- Total costs and expenses 102,482 --------- Operating income (loss) 7,366 Other income (expense): Interest expenses, net (926) Reorganization items (3,270) Other-net 423 --------- Income (loss) before income taxes and minority interest 3,593 (Provision) benefit for income taxes (1,988) Minority interests - Equity in income (loss) of subsidiaries (17) --------- Net income (loss) $1,588 ========= Kaiser Aluminum Corporation -- All Debtors Schedule of Consolidated Cash Receipts and Disbursements For the Month Ending November 30, 2004 (In Thousands) Receipts: Trade Receivables KACC Receivables $72,517 KAII Receivables 35,351 --------- Total Trade Receivables 107,868 Alpart Proceeds Available to KACC 28,130 COBRA receipts 475 Proceeds from: Hedging Settlement 414 Sale of Valco 849 --------- Total Receipts 137,736 Disbursements: Inventory/Raw Materials 38,859 Capital Expenditures 629 Commodity Asset Related Transaction Costs 557 Maintenance, Materials, etc. 4,480 Freight 2,819 Utilities/Energy 10,529 Hourly Payroll 5,924 Salaried Payroll 3,547 Hedging Activities 202 VEBA Advances 1,900 Medical - Current and Former Employees 3,639 Annual Insurance Premiums 1,867 Workmen's Compensation 632 Corporate General and Administrative 2,767 JV Fundings - Alumina 13,651 JV Fundings - Primary, Net of Minority Interest 9,043 Other Disbursements 12,252 --------- Total Operating and G&A Disbursements 113,297 Reorganization Items 4,210 --------- Total Disbursements 117,507 --------- Net Cash Flow 20,229 Beginning Bank Cash Balances 31,251 --------- Ending Bank Cash Balances 51,480 Reconciling Items (27) --------- Ending Book Cash Balances $51,453 ========= Headquartered in Houston, Texas, Kaiser Aluminum Corporation -- http://www.kaiseral.com/-- operates in all principal aspects of the aluminum industry, including mining bauxite; refining bauxite into alumina; production of primary aluminum from alumina; and manufacturing fabricated and semi-fabricated aluminum products. The Company filed for chapter 11 protection on February 12, 2002 (Bankr. Del. Case No. 02-10429). Corinne Ball, Esq., at Jones Day, represent the Debtors in their restructuring efforts. On June 30, 2004, the Debtors listed $1.619 billion in assets and $3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 56; Bankruptcy Creditors' Service, Inc., 215/945-7000) MIRANT CORP: Posts $61.3 Million Net Loss for October 2004 ---------------------------------------------------------- Mirant Corporation and Subsidiaries Consolidated Balance Sheet As of October 31, 2004 ASSETS Cash and cash equivalents $1,443,786,918 Accounts receivable - net 1,035,812,321 Assets from risk management activities 317,881,428 Derivative hedging instruments - Inventories 325,464,082 Other 781,757,732 --------------- Total Current Assets 3,904,702,481 Property, plant and equipment 5,143,349,413 Less: accumulated depreciation/depletion 770,397,779 Leasehold interests - net 1,510,745,389 Construction work in progress 116,405,719 Investment in suspended construction 249,733,536 --------------- Total net property, plant and equipment 6,249,836,278 Investments 246,001,469 Long-term accounts receivable - net 37,007,073 Notes receivable - net - Assets from risk management activities 132,194,467 Goodwill - net 587,304,353 Other intangibles - net 271,324,131 Derivative hedging instruments - Restricted cash, non-current 136,778,641 Other long-term assets 1 Miscellaneous deferred charges 422,499,929 --------------- Total Non-current Assets 1,833,110,064 --------------- TOTAL ASSETS $11,987,648,823 =============== LIABILITIES AND EQUITY Postpetition Liabilities: Debt $1,395,495,683 Accounts Payable 670,087,053 Liabilities from risk management activities 618,864,629 Obligations under energy deliveries 61,618,199 Derivative hedging instruments - Other 406,437,768 Miscellaneous deferred credits 548,280,468 --------------- Total postpetition liabilities 3,700,783,800 Prepetition Liabilities 8,910,601,859 --------------- TOTAL LIABILITIES 12,611,385,659 EQUITY: Minority interest in subsidiaries 171,539,005 Mandatory redeemable securities - Common stock 4,056,621 Additional paid-in capital 4,918,220,855 Retained earnings (5,645,506,814) Treasury stock, at cost (2,260,000) Accumulated other comprehensive income (69,736,503) --------------- Total Equity (623,736,836) --------------- TOTAL LIABILITIES AND OWNERS' EQUITY $11,987,648,823 =============== Mirant Corporation and Subsidiaries Consolidated Statements of Income For the month ending October 31, 2004 REVENUES: Generation $118,370,747 Net trading revenue (4,402,552) Distribution 55,628,411 Other 470,301 --------------- Net Revenue 170,066,907 OPERATING EXPENSES: Energy cost 105,259,880 Operations and maintenance 84,937,454 Depreciation and amortization 25,426,403 Gain on sale of property and investment 197 Impairment loss (340,073) Restructuring costs 407,908 --------------- Total Operating Expenses 215,691,769 --------------- Income before non-operating income and expense (45,624,862) OTHER INCOME AND EXPENSES: Interest income 1,070,965 Interest expense (10,640,837) Equity in income of affiliates 2,194,851 Other 7,033,102 Reorganization items (10,329,725) Minority interest (2,670,796) Net income from discontinued operations (537,787) --------------- Total Other Income (13,880,227) Provision for income tax (1,863,838) --------------- NET PROFIT (LOSS) ($61,368,927) =============== Mirant Corporation Unconsolidated Cash Receipts and Disbursements For the month ending October 31, 2004 Cash, beginning of month $311,608,828 Non-Operating Receipts: Loans & Advances (81,937,453) --------------- Total non-operating receipts (81,937,453) --------------- Total receipts (81,937,453) --------------- Total Cash Available 229,671,374 Operating Disbursements 0 Reorganization Expenses 399,366 --------------- Total disbursements 399,366 --------------- Net Cash Flow (82,336,820) --------------- Cash, end of month $229,272,008 =============== Headquartered in Atlanta, Georgia, Mirant Corporation -- http://www.mirant.com/-- together with its direct and indirect subsidiaries, generate, sell and deliver electricity in North America, the Philippines and the Caribbean. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590). Thomas E. Lauria, Esq., at White & Case LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $20,574,000,000 in assets and $11,401,000,000 in debts. (Mirant Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service, Inc., 215/945-7000) MIRANT: MAGi Posts $84 Million Net Loss for October 2004 -------------------------------------------------------- Mirant Americas Generation, LLC, and Subsidiaries Consolidated Balance Sheets As of October 31, 2004 ASSETS Cash and cash equivalents $580,803,935 Accounts receivable - net 527,816,650 Assets from risk management activities 134,044,263 Derivative hedging instruments - Inventories 102,627,518 Other 170,358,707 --------------- Total Current Assets 1,515,651,073 Property, plant and equipment 2,199,082,701 Less: accumulated depreciation/depletion 318,279,713 Construction work in progress 42,109,185 Investment in suspended construction 174,267,263 --------------- Total net property, plant and equipment 2,097,179,436 Investments 25,000 Long-term accounts receivable - net 92,716,832 Notes receivable - net 223,275,000 Assets from risk management activities 21,654,574 Other intangibles - net 208,217,443 Derivative hedging instruments - Restricted cash, non-current 6,844,759 Other long-term assets - Miscellaneous deferred charges 174,586,522 --------------- Total Non-current Assets 727,320,130 --------------- TOTAL ASSETS $4,340,150,639 =============== LIABILITIES AND EQUITY Postpetition Liabilities: Debt $0 Accounts Payable 359,879,446 Liabilities from risk management activities 306,603,429 Obligations under energy deliveries - Derivative hedging instruments - Other 140,076,267 Miscellaneous deferred credits 15,976,565 --------------- Total postpetition liabilities 822,535,707 Prepetition Liabilities 3,437,938,674 --------------- TOTAL LIABILITIES 4,260,474,381 EQUITY: Minority interest in subsidiaries 35,002 Mandatory redeemable securities - Common stock 1,000 Additional paid-in capital 3,858,859,717 Retained earnings (3,779,219,461) Accumulated other comprehensive income - --------------- Total Equity 79,676,258 --------------- TOTAL LIABILITIES AND OWNERS' EQUITY $4,340,150,639 =============== Mirant Americas Generation, LLC, and Subsidiaries Consolidated Statements of Income For the month ending October 31, 2004 REVENUES: Generation $17,767,020 Net trading revenue - Other 48,462 --------------- Net Revenue 17,815,482 OPERATING EXPENSES: Energy cost 42,507,950 Operations and Maintenance 53,793,070 Depreciation and amortization 7,486,855 Gain on sale of property and investments - Impairment Loss 72,700 Restructuring costs (269,540) --------------- Total Operating Expenses 103,591,035 --------------- Income before non-operating income and expense (85,775,553) OTHER INCOME AND EXPENSES: Interest income - Interest expense (672,461) Other (136,548) Reorganization items (2,591,417) Loss from discontinued operations - Minority interest - --------------- Total Other Income (expense) (3,400,426) Provision for income tax 5,174,249 --------------- NET PROFIT (LOSS) ($84,001,730) =============== Mirant Americas Generation, LLC Unconsolidated Cash Receipts and Disbursements For the month ending October 31, 2004 Cash, beginning of month $145,604,000 Non-Operating Receipts: Loans and advances 10,801,582 Other - --------------- Total non-operating receipts 10,801,582 --------------- Total receipts 10,801,582 --------------- Total Cash Available 156,405,582 REORGANIZATION EXPENSES: Professional fees 0 --------------- Total reorganization expenses 0 --------------- Total disbursements 0 --------------- Net Cash Flow 10,801,582 --------------- Cash, end of month $156,405,582 =============== Headquartered in Atlanta, Georgia, Mirant Corporation -- http://www.mirant.com/-- together with its direct and indirect subsidiaries, generate, sell and deliver electricity in North America, the Philippines and the Caribbean. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590). Thomas E. Lauria, Esq., at White & Case LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $20,574,000,000 in assets and $11,401,000,000 in debts. (Mirant Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service, Inc., 215/945-7000) RELIANCE GROUP: Posts $285,000 Net Loss in November 2004 -------------------------------------------------------- RELIANCE GROUP HOLDINGS, INC., et al. Unaudited Consolidated Balance Sheet, excluding subsidiaries which are not Debtors-in-Possession 30-Nov-2004 _____________________________________ ___________ ASSETS Cash $55,246,000 Accounts and Notes Receivable 13,090,000 Prepaid expenses and deposits 353,000 Due from Reliance Development Group, less allowance of $59,334,000 0 Plant, property & equipment - ---------------- Total Assets $68,689,000 ================ LIABILITIES & SHAREHOLDERS' DEFICIT Liabilities not subject to compromise Postpetition accounts payable $1,405,000 Professional fee holdback payable 2,196,000 PBGC administrative claim 3,000,000 Liabilities subject to compromise 1,106,116,000 ---------------- Total liabilities 1,112,717,000 ---------------- Shareholders' deficit: Common stock 11,616,000 Additional paid in capital 558,541,000 Accumulated deficit (1,614,185,000) ---------------- Total shareholders' deficit (1,044,028,000) ---------------- Total liabilities & deficit $68,689,000 ================ RELIANCE GROUP HOLDINGS, INC., et al. Unaudited Consolidated Statement of 1-Nov-2004 Operations, excluding subsidiaries to which are not Debtors-in-Possession 30-Nov-2004 _____________________________________ ___________ Revenues $0 ---------------- Costs and expenses: Operating and administrative 82,000 Pension Plan Actuarial Adjustments and Expenses 0 Depreciation 0 ---------------- Total costs and expenses 82,000 ---------------- Loss before reorganization items (82,000) ---------------- Reorganization items: Professional fees 286,000 Interest earned on accumulated cash resulting from Chapter 11 proceeding (83,000) ---------------- Total reorganization items 203,000 ---------------- Income Tax benefits 0 ---------------- Net Income ($285,000) ================ RELIANCE GROUP HOLDINGS, INC., et al. Unaudited Consolidated Statement of 1-Nov-2004 Cash Flows, excluding subsidiaries to which are not Debtors-in-Possession 30-Nov-2004 _____________________________________ ___________ Cash flows from operating activities: Loss from operations before reorganization items ($82,000) Adjustments to reconcile loss to net cash provided by operating activities: Income Tax Recovery 0 Depreciation 0 Changes in: Prepaid expenses 0 Postpetition payables (28,000) Increase in Liabilities subject to compromise 0 ---------------- Net cash (used) provided by operating activities before reorganization items (110,000) ---------------- Operating cash flows from reorganization items: Interest earned 83,000 Application of retainer towards reorganization professional fees 0 Payment of reorganization items (550,000) ---------------- Net cash used by reorganization items (467,000) ---------------- Net cash used by operating activities (577,000) ---------------- Cash flows from investing activities: Receipt from Reliance Development Group 0 ---------------- Net cash provided by investing activities 0 ---------------- Cash flow from financing activities: Proceeds of split dollar policies 0 ---------------- Net cash provided by financing activities 0 ---------------- Net increase in cash (577,000) Cash at beginning of period 55,823,000 ---------------- Cash at end of period $55,246,000 ================ Headquartered in New York, New York, Reliance Group Holdings, Inc. -- http://www.rgh.com/-- is a holding company that owns 100% of Reliance Financial Services Corporation. Reliance Financial, in turn, owns 100% of Reliance Insurance Company. The holding and intermediate finance companies filed for chapter 11 protection on June 12, 2001 (Bankr. S.D.N.Y. Case No. 01-13403) listing $12,598,054,000 in assets and $12,877,472,000 in debts. The insurance unit is being liquidated by the Insurance Commissioner of the Commonwealth of Pennsylvania. (Reliance Bankruptcy News, Issue No. 66; Bankruptcy Creditors' Service, Inc., 215/945-7000) TRENWICK AMERICA: Earns $12.6 Million of Net Income in October -------------------------------------------------------------- On Nov. 22, 2004, Trenwick America Corporation filed monthly operating reports for the month ended Oct. 31, 2004, and the period from Aug. 20, 2003, to Oct. 31, 2004, with the United States Bankruptcy Court for the District of Delaware. Trenwick posts a $12,622,523 net income in October 2004, and a cumulative $58,834,943 loss for the period from Aug. 20, 2003, to Oct. 31, 2004. At Oct. 31, 2004, Trenwick America's balance sheet showed: Total Current Assets $ 56,813,066 Total Assets 251,177,847 Total Prepetition Debts 288,386,641 Total Liabilities 292,702,616 Net Owner Equity $(41,524,769) A full-text copy of Trenwick America's October 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1127783/000116923204005985/d61531_ex9 9-1.txt Headquartered in Stamford, Connecticut, Trenwick America Corporation is a holding company for operating insurance companies in the United States. The Company filed for chapter 11 protection on August 20, 2003 (Bankr. Del. Case No. 03-12635). Christopher S. Sontchi, Esq., and William Pierce Bowden, Esq., at Ashby & Geddes, and Benjamin Hoch, Esq., Irena Goldstein, Esq., Carey D. Schreiber, Esq., at Dewey Ballantine LLP represent the Debtors in their restructuring efforts. As of June 30, 2003, the Debtor listed approximate assets of $400,000,000 and debts of $293,000,000. On August 20, 2003, Trenwick Group, Ltd., and LaSalle Re Holdings Limited also filed insolvency proceedings in the Supreme Court of Bermuda. On August 22, 2003, the Bermuda Court granted an order appointing Michael Morrison and John Wardrop, partners of KPMG in Bermuda and KPMG LLP in the United Kingdom, respectfully, as Joint Provisional Liquidators in respect of TGL and LaSalle. The Bermuda Court granted the JPLs the power to oversee the continuation and reorganization of these companies' businesses under the control of their boards of directors and under the supervision of the U.S. Bankruptcy Court and the Bermuda Court. TRENWICK AMERICA: Posts $1.3 Million of Net Loss in November ------------------------------------------------------------ On November 22, 2004, Trenwick America Corporation filed monthly operating reports for the month ended Nov. 30, 2004, and the period from Aug. 20, 2003, to Nov. 30, 2004, with the United States Bankruptcy Court for the District of Delaware. Trenwick posts a $1,271,029 net loss in November 2004, and a cumulative $60,105,972 loss for the period from Aug. 20, 2003, to Nov. 30, 2004. At Nov. 30, 2004, Trenwick America's balance sheet showed: Total Current Assets $ 56,638,092 Total Assets 248,799,043 Total Prepetition Debts 288,386,641 Total Liabilities 293,030,719 Net Owner Equity $(44,231,676) A full-text copy of Trenwick America's November 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1127783/000116923205000041/d61784_ex9 9-1.txt Headquartered in Stamford, Connecticut, Trenwick America Corporation is a holding company for operating insurance companies in the United States. The Company filed for chapter 11 protection on August 20, 2003 (Bankr. Del. Case No. 03-12635). Christopher S. Sontchi, Esq., and William Pierce Bowden, Esq., at Ashby & Geddes, and Benjamin Hoch, Esq., Irena Goldstein, Esq., Carey D. Schreiber, Esq., at Dewey Ballantine LLP represent the Debtors in their restructuring efforts. As of June 30, 2003, the Debtor listed approximate assets of $400,000,000 and debts of $293,000,000. On August 20, 2003, Trenwick Group, Ltd., and LaSalle Re Holdings Limited also filed insolvency proceedings in the Supreme Court of Bermuda. On August 22, 2003, the Bermuda Court granted an order appointing Michael Morrison and John Wardrop, partners of KPMG in Bermuda and KPMG LLP in the United Kingdom, respectfully, as Joint Provisional Liquidators in respect of TGL and LaSalle. The Bermuda Court granted the JPLs the power to oversee the continuation and reorganization of these companies' businesses under the control of their boards of directors and under the supervision of the U.S. Bankruptcy Court and the Bermuda Court. UAL CORP: Posts $87.5 Million Net Loss for November 2004 -------------------------------------------------------- UAL Corporation (OTCBB: UALAQ.OB), the holding company whose primary subsidiary is United Airlines, filed its November Monthly Operating Report with the United States Bankruptcy Court. The company reported an operating loss of $188 million for November 2004. Mainline passenger unit revenue decreased 1% year-over-year. Unit costs were up 9% over last year. Excluding fuel, unit costs were flat year-over-year. The company reported a net loss of $87 million, including a $158 million gain from the sale of Orbitz shares and $20 million of reorganization expenses. United continued to deliver strong operational results in November, with an on-time :14 arrival performance rate of 83.2% and a load factor of 76.1%. Employees also exceeded the company's goals for November for customer satisfaction, as measured by definite intent to repurchase. "Due to harsh industry conditions, we must urgently implement additional cost reduction initiatives so that the durable, long-lasting savings required are in place by mid- January," said Jake Brace, executive vice president and chief financial officer. "We have reached a tentative agreement with the Air Line Pilots Association (ALPA), and we look forward to productive negotiations with our other unions. While United continues to face some very difficult challenges, once these savings are in place, no other network carrier is better positioned to be profitable and competitive for the long term." UAL ended November with a cash balance of about $2.4 billion, which included $843 million in restricted cash. The cash balance increased approximately $97 million during the month of November, driven by $185 million in cash proceeds from the sale of Orbitz shares. Because of the gain from the sale of Orbitz shares, the company met its November EBITDAR covenant. A full-text copy of UAL Corporation's November 2004 Operating Report is available for free at the Securities and Exchange Commission at: http://www.sec.gov/Archives/edgar/data/100517/000010051704000041/novmor.htm UAL Corporation and Subsidiary Companies Condensed Consolidating Statement of Operations For The Month Ended November 30, 2004 (In Thousands) Total operating revenues $1,424,657 Total operating expenses 1,613,075 Earnings (loss) from operations (188,418) Non-operating income (expenses): Net interest expense (37,622) Gain on Sale of Orbitz 157,624 Other income (expenses), net 945 ---------- Total non-operating income (expenses) 120,947 Net Earnings (loss) before Reorganization items (67,471) Reorganization items (20,002) ---------- Net earnings (loss) ($87,473) ========== 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. (United Airlines Bankruptcy News, Issue No.71; Bankruptcy Creditors' Service, Inc., 215/945-7000) WINSTAR COMMS: Releases October 2004 Monthly Operating Report ------------------------------------------------------------- Winstar Communications, Inc. Balance Sheet As of October 31, 2004 ASSETS Unrestricted Cash and Equivalents $25,321,476 Restricted Cash and Cash Equivalents - Accounts Receivable (Net) - Notes Receivable - Inventories - Prepaid Expenses - Professional Retainers - Other Current Assets - ------------ Total Current Assets 25,321,476 ------------ Real Property and Improvements Machinery & Equipment - Furniture, Fixtures & Office Equipment - Leasehold Improvements - Vehicles - Less: Accumulated Depreciation - ------------ Total Property & Equipment - ------------ Loans to Insiders Other Assets - ------------ Total Other Assets - ------------ TOTAL ASSETS $25,321,476 ============ LIABILITIES & SHAREHOLDER'S EQUITY Accounts Payable - Taxes Payable - Wages Payable - Notes Payable - Rent/Leases - Building/Equipment - Secured Debt/Adequate Protection Payments - Professional Fees - Amounts Due to Insiders - Other Post Conversion Liabilities - ------------ Total Post Conversion Liabilities - ------------ Secured Debt - Priority Debt - Unsecured Debt - ------------ Total Pre-Conversion Liabilities - ------------ Owners' Equity Capital Stock - Additional Paid In Capital - Partners' Capital Account - Owners' Equity Account $57,559,619 Retained Earnings - Pre-Conversion - Retained Earnings - Post-Conversion (32,238,143) Adjustments to Owner Equity - Postpetition Contributions (Distributions)(Draws) - ------------ Net Owners' Equity 25,321,476 ------------ TOTAL LIABILITIES & OWNERS' EQUITY $25,321,476 ============ Winstar Communications, Inc. Statement of Operations For the Month Ended October 31, 2004 Gross Revenues - Less: Returns and Allowances - ------------ Net Revenue - Beginning Inventory - Add: Purchases - Add: Cost of Labor - Add: Other Costs - Less: Ending Inventory - Cost of Goods Sold - ------------ Gross Profit - Advertising - Auto and Truck Expense - Bad Debts - Contributions - Employee Benefits Programs - Insider Compensation - Insurance - Management Fees/Bonuses - Office Expense - Pension & Profit-Sharing Plans - Repairs and Maintenance - Rent and Lease Expenses - Salaries/Commissions/Fees - Supplies - Taxes - Payroll - Taxes - Real Estate - Taxes - Other - Travel and Entertainment - Utilities - Other - ------------ Total Operating Expenses before Depreciation - Depreciation/Depletion/Amortization - ------------ Net Profit (Loss) before other income and expenses - Other Income $77,531 Worker's Comp Refund - Tax Refund 192,021 Leasehold Buyback - Interest Expense - Other Expense 2,314 Pmt from Sale of Assets - Tera - Compensation as Director per Court Order - Payment Per Stipulation - Pmt from Sale of Assets - American Communications - Return of DIP Loan Disbursement - Pmt from Sale of Del Telecom International Stock - Pmt per NW Nexus Sale Order - Pmt per 1/7 Order and APA Agreement - Payment per 2/10/03 Court Order - Pmt PTO Employment Contract - Turnover of Funds to IDT - Turnover of Bank Account - Insurance Expense 2,869 Reimbursement of Expenses 2,368 Payroll 17,306 Sale of Assets - ------------ Net Profit (Loss) before reorganization items 244,694 Professional Fees - U.S. Trustee Quarterly Fees - Interest Earned on Accumulated Cash from Chapter 11 - Gain (Loss) from Sale of Equipment - Other Reorganization Expenses - Total Reorganization Expenses - Income Taxes - ------------ Net Profit (Loss) $244,694 ============ Winstar Communications, Inc. Cash Receipts and Disbursements For the Month Ended October 31, 2004 Cash Beginning of Month $25,076,782 Receipts: Cash Sales - Accounts Receivable - Return of DIP Loan Disbursement - Sale of ISP Northwest Nexus - Holdings Funds - Insurance Refund Dividend - Final Settlement - Liquidation of Well's Fargo Acct - Liquidation of Fleet Account per stipulation - Transfer from AON - Leasehold Buyback - Closing of Bank Account - Pmt from Sales of Assets - Tera - Pmt from Sales of Assets - American Communications - Pmt from Sale of Del Telecom International Stock - Transfers - Claim Settlement - Refund of Overpayment - Tax Refund 192,021 Worker's Comp Refund - Collection on Preferences 61,999 Turnover of Bank Account - Reimbursement - Moving Expenses - Interest 15,532 Payment from Sale of Assets - ------------ Total Receipts $269,551 Disbursements: Employee Benefits - Net Payroll $17,306 Payroll Taxes - Sales, Use, & Other Taxes - Chapter 11 Quarterly Fees - Chapter 11 Administrative Claims - Insurance 2,869 Additional Payment of Funds - CTG Revised Accounting - Pmt per NW Nexus Sale Order - Pmt per 1/7 Order and APA Agreement - Advertising Fees - License Fees - Legal Fees per Court Order - Administrative 2,314 Telephone - Compensation as Director per Court Order - Distribution Per Orders of 12/12/02 - Payment per 2/10/03 Court Order - Pmt PTO Employment Contract - Owner Draw - Reimbursement of Check from SF Interactive - Reimbursement of Expenses 2,368 Reimbursement of Expenses per Order of 5/13/03 - Turnover of Funds to IDT - Trustee Bond - Professional Fees - Trustee Expense - Trustee Commission - Bankruptcy Service Payments - Rent - Moving Expenses - Payment per Stipulation - Payment of Carve Out per order of 12/11/02 - Payment per stipulation and order of 4/15/03 - per carve out - Per Order of 4/15/03 - payment of chapter 11 carve out - Pmt per order of 4/15/03 - pmt of carve out chapter 11 fees - Attorney's Fees for Counsel for Trustee - Accounting Fees for acct. for Chapter 7 Trustee - Tax Consultant Fees - Payment - Summary Judgment - Payment of Claims - ------------ Total Disbursements 24,857 ------------ Net Cash Flow 244,694 ------------ Cash - End of Month $25,321,476 ============ Headquartered in New York, New York, Winstar Communications, Inc., provides broadband services to business customers. The Company and its debtor-affiliates filed for chapter 11 protection on April 18, 2001 (Bankr. D. Del. Case Nos. 01-01430 through 01-01462). The Debtors obtained the Court's approval converting their case to a chapter 7 liquidation proceeding in January 2002. Christine C. Shubert serves as the Debtors' chapter 7 trustee. When the Debtors filed for bankruptcy, they listed $4,975,437,068 in total assets and $4,994,467,530 in total debts. (Winstar Bankruptcy News, Issue No. 62; Bankruptcy Creditors' Service, Inc., 215/945-7000) ********* 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, Dylan Carlo L. Gallegos, Jazel P. Laureno, Cherry Soriano-Baaclo, Marjorie Sabijon, Terence Patrick F. Casquejo and Peter A. Chapman, Editors. Copyright 2004. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $675 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***