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-
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for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher
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                    *** End of Transmission ***