/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/050305.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, March 5, 2005, Vol. 9, No. 54 Headlines ACCEPTANCE INSURANCE: Posts $1,879 Net Loss in January 2005 ADELPHIA COMMS: Reports $44.1 Million Net Loss in January 2005 ADELPHIA: Century/ML's January 2005 Monthly Operating Report CATHOLIC CHURCH: Tucson Files Jan. 2005 Monthly Operating Report COMMERCE ONE: Posts $45,006 Net Loss in January 2005 FRESH CHOICE: Posts $937,262 Net Loss for Period Ended Jan. 23 HAWAIIAN AIRLINES: Posts $588,000 Net Income for January 2005 INTERMET CORP: Posts $3,149,000 Net Loss in January 2005 INTERSTATE BAKERIES: Files Financial Statements Ending Jan. 8 PARMALAT: Finanziaria Reports January 2005 Financial Results PARMALAT: Releases Monthly Operating Report Ended Dec. 25, 2004 PARMALAT: Milk Products' December 2004 Monthly Operating Report PARMALAT: Farmland Dairies' December 2004 Monthly Operating Report SOLUTIA INC: Posts $3 Million Net Loss for January 2005 SPIEGEL INC: Earns $144 Million of Net Income in January 2005 UAL CORP: Posts $326 Million Net Loss for January 2005 WESTPOINT STEVENS: Posts $42 Million Net Loss in December 2004 WESTPOINT STEVENS: WP Stevens I Posts $4MM Net Income in December WESTPOINT STEVENS: JP Stevens & Co.'s December Operating Report WESTPOINT STEVENS: JP Stevens Enterprises' Dec. Operating Report WESTPOINT STEVENS: WP Stevens Stores' December Operating Report YUKOS OIL: Files Monthly Operating Report for December 2004 YUKOS OIL: Files Monthly Operating Report for January 2005 ********* ACCEPTANCE INSURANCE: Posts $1,879 Net Loss in January 2005 ----------------------------------------------------------- On Feb. 15, 2005, Acceptance Insurance Companies Inc., filed its monthly operating report for January 2005, with the U.S. Bankruptcy Court for the District of Nebraska. The Debtor reports a $1,879 net loss for January 2005. At Jan. 31, 2005, Acceptance Insurance Companies Inc.'s balance sheet showed: Total Current Assets $2,860,639 Total Assets 33,113,639 Total Liabilities 138,156,314 Total Shareholders' Equity $(105,042,675) A full-text copy Acceptance Insurance Companies Inc.'s January 2005 Monthly Operating Report is available at no charge at: http://sec.gov/Archives/edgar/data/74783/000119312505038259/dex991.htm Headquartered in Council Bluffs, Iowa, Acceptance Insurance Companies Inc. -- http://www.aicins.com/ -- owns, either directly or indirectly, several companies, one of which is an insurance company that accounts for substantially all of the business operations and assets of the corporate groups. The Company filed for chapter 11 protection on Jan. 7, 2005 (Bankr. D. Nebr. Case No. 05-80059). The Debtor's affiliates -- Acceptance Insurance Services, Inc., and American Agrisurance, Inc. -- filed chapter 7 petitions (Bankr. D. Nebr. Case Nos. 05-80056 & 05-80058). John J. Jolley, Esq., at Kutak Rock LLP, represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $33,069,446 in total assets and $137,120,541 in total debts. ADELPHIA COMMS: Reports $44.1 Million Net Loss in January 2005 -------------------------------------------------------------- Adelphia Communications Corporation, et al. Unaudited Consolidated Balance Sheet As of January 31, 2005 (Dollars in thousands) ASSETS Cash and cash equivalents $382,990 Restricted cash 5,176 Accounts receivables - net 107,924 Other current assets 175,123 ----------- Total current assets 671,213 Restricted cash 4,641 Investments in equity affiliates 229,953 Related party receivables 21,940 Property, plant and equipment - net 4,321,004 Intangible assets - net 7,495,155 Other noncurrent assets - net 107,430 ----------- Total Assets $12,851,336 =========== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $156,223 Subscriber advance payments and deposits 33,996 Accrued and other liabilities 449,914 Deferred revenue 30,913 Current portion of parent and subsidiary debt 707,633 ----------- Total current liabilities 1,378,679 Other liabilities 120,640 Deferred revenue 83,183 Deferred income taxes 619,844 ----------- Total noncurrent liabilities 823,667 Liabilities subject to compromise 18,058,472 ----------- Total liabilities 20,260,818 Minority interests 90,263 Stockholders' equity: Series preferred stock 397 Class A and Class B common stock 2,548 Additional paid-in capital 9,567,022 Accumulated other comprehensive loss 826 Accumulated deficit (16,256,470) Treasury stock, at cost (27,937) ----------- Total (6,713,614) Amounts due from Rigas family entities (786,131) ----------- Total stockholders' equity (7,499,745) ----------- Total liabilities and stockholders' equity $12,851,336 =========== Adelphia Communications Corporation, et al. Unaudited Consolidated Statements of Operations Month Ended January 31, 2005 (Dollars in thousands) Revenue $333,138 Cost and expenses: Direct operating and programming 207,080 Selling, general and administrative: Third party 28,069 Investigation and re-audit related fees 5,932 Depreciation and amortization 86,503 Impairment of long-lived and other assets - Non-recurring professional fees - ----------- Operating income (loss) 5,554 Other income (expense): Interest expense (44,029) Impairment of cost & available for sale investments - Other income (expense) - net 49 ----------- Total other expense - net (43,980) ----------- Loss from continuing operations before Reorganization expenses (38,426) Reorganization expenses due to bankruptcy (6,774) ----------- Loss from continuing operations before income taxes (45,200) Income tax (expense) benefit - Share of losses of equity affiliates - net (130) Minority's interest in subsidiary losses - net 1,215 ----------- Net loss (44,115) Beneficial conversion feature (583) ----------- Net loss applicable to common stockholders $(44,698) =========== Adelphia Communications Corporation, et al. Unaudited Consolidated Statements of Cash Flows Month Ended January 31, 2005 (Dollars in thousands) Cash flows from operating activities: Net loss $(44,115) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 86,503 Amortization of debt financing costs 4,670 Impairment of cost & available for sale investments - Reorganization expenses due to bankruptcy 6,774 Deferred tax expense (benefit) - Share in losses (earnings) of equity affiliates 130 Minority interest in losses of subsidiaries (1,215) Depreciation, amortization and other non-cash items from discontinued operations - Change in operating assets & liabilities 3,882 ----------- Net cash provided by operating activities before payment of reorganization expenses 56,629 Reorganization expenses paid during the period (5,093) ----------- Net cash provided by (used in) operating activities 51,536 Cash flows from investing activities: Expenditures for property, plant and equipment (51,174) Changes in restricted cash 1,139 Other 3,189 ----------- Net cash used in investing activities (46,846) Cash flows from financing activities: Proceeds from extended DIP facility & DIP facility 45,000 Repayments of debt (4,972) Payment of bank financing costs - ----------- Net cash provided by financing activities 40,028 Change in cash and cash equivalents cash 44,718 Cash, beginning of period 338,272 ----------- Cash, end of period $382,990 =========== Headquartered in Coudersport, Pennsylvania, Adelphia Communications Corporation (OTC: ADELQ) is the fifth-largest cable television company in the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the ACOM Debtors. (Adelphia Bankruptcy News, Issue No. 81; Bankruptcy Creditors' Service, Inc., 215/945-7000) ADELPHIA: Century/ML's January 2005 Monthly Operating Report ------------------------------------------------------------ Century-ML Cable Venture (Debtor-In-Possession) Unaudited Balance Sheet As of January 31, 2005 (Dollars in thousands) ASSETS Cash and cash equivalents $17,953 Subscriber receivables, net 262 Investment in Century-ML Corporation 136,348 Related party receivables 231 Other current assets 388 -------- Total current assets 155,182 Property, plant and equipment, net 6,003 Intangible assets, net 1,528 -------- Total assets $162,713 ======== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $12 Subscriber advance payments and deposits 89 Accrued expenses and other liabilities 1,912 Intercompany payables 2,423 -------- Total current liabilities 4,436 -------- Long-term accrued and other liabilities 15 Deferred revenues 149 Deferred income taxes 45 -------- Total non-current liabilities 209 Liabilities subject to compromise: Accounts payable 20 Accrued expenses and other liabilities 1,281 Intercompany payables 10,872 -------- Total liabilities subject to compromise 12,173 -------- Total liabilities 16,818 -------- Partners' equity: Partners' contributions 56,800 Partners' retained earnings 89,095 -------- Total partners' equity 145,895 -------- Total liabilities and partners' equity $162,713 ======== Century-ML Cable Venture (Debtor-In-Possession) Unaudited Statement of Operations For the Month Ended December 31, 2004 (Dollars in thousands) Revenue $1,023 Cost and expenses: Direct operating and programming 522 Selling, general and administrative 21 Management fees 43 Non-recurring professional fees - Depreciation 71 -------- Operating income before reorganization expenses due to bankruptcy 366 Reorganization expenses due to bankruptcy 71 -------- Operating income 295 Interest income, net 20 Equity in net income of Century-ML Cable Corporation, net of taxes 1,260 -------- Income before income taxes 1,575 Income tax expense (174) -------- Net income $1,401 ======== Century-ML Cable Venture (Debtor-In-Possession) Unaudited Statement of Cash Flows For the Month Ended December 31, 2004 (Dollars in thousands) Cash flow from operating activities: Net income $1,401 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 71 Reorganization expenses due to bankruptcy 71 Non-recurring professional fees - Equity in net income of Century-ML Cable Corp., net of taxes (1,260) Change in assets and liabilities: Subscriber receivables, net (5) Prepaid expenses and other assets, net (52) Accounts payable 12 Subscriber advance payments and deposits 5 Accrued expenses and other liabilities 29 Intercompany receivables and payables - net 77 -------- Net cash provided by operating activities 349 -------- Cash flows from investing activities: Expenditures from property, plant and equipment (65) -------- Net cash used in investing activities (65) -------- Change in cash and cash equivalents 284 Cash and cash equivalents, beginning of period 17,669 -------- Cash and cash equivalents, end of period $17,953 ======== Headquartered in Coudersport, Pennsylvania, Adelphia Communications Corporation (OTC: ADELQ) is the fifth-largest cable television company in the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the ACOM Debtors. (Adelphia Bankruptcy News, Issue No. 81; Bankruptcy Creditors' Service, Inc., 215/945-7000) CATHOLIC CHURCH: Tucson Files Jan. 2005 Monthly Operating Report ---------------------------------------------------------------- The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole (Unaudited) Statement of Financial Condition As of January 31, 2005 ASSETS Total Diocese-Owned ----- ------------- Cash on hand $1,500 $1,500 Cash in Banks 1,198,329 223,540 Cash Equivalents 2,814,340 1,989,472 Accounts receivable, net 1,553,824 1,553,824 Allowance for doubtful accounts (1,183,239) (1,183,239) Grants receivable 377,750 377,750 Pledges receivable 6,000 6,000 A/R held in trust for others 70,571 0 Due from administered funds 122,519 0 Prepaid expenses & other assets 696,323 696,323 Investments in businesses 5,810,341 4,510,257 Corp. & Gov't. bond investments 2,391,103 1,626,103 Investment in BPIC 80,850 80,850 Notes receivable, net 2,089,942 310,992 Allowance for doubtful notes receivable (329,288) (5,411) Assets securing 2002 settlement 3,000,000 3,000,000 Construction in progress 48,867 48,867 Land, buildings, and equipment 525,868 525,868 Assets held for sale 60,226 60,226 Land held for future parish sites 817,460 817,460 -------------- -------------- $20,153,286 $14,640,382 ============== ============== LIABILITIES AND NET ASSETS Liabilities: Accounts payable - post 648,313 648,313 Accounts payable - pre 40,743 40,743 Accrued expenses - post 28,927 28,927 Accrued expenses - pre 157,682 157,682 Due to Diocese 122,519 122,519 Accrued insurance claims 354,225 354,225 Unsecured long-term debt - pre 2,061,455 2,061,455 Unsecured long-term debt - post 100,000 100,000 Unrestricted parish deposits 6,975,561 6,962,867 Restricted parish deposits 3,579,124 0 Secured long-term debt 2,604,414 2,604,414 Custodial funds 1,921,086 0 -------------- -------------- Total Liabilities 18,594,049 13,081,145 -------------- -------------- Net Assets: Unrestricted/temporarily restricted (349,651) (349,651) Permanently restricted 1,908,888 1,908,888 -------------- -------------- Total liabilities & net assets $20,153,286 $14,640,382 ============== ============== The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole Statement of Operations and Charges in Net Assets January 1, 2005 through January 31, 2005 Revenues Contributions, grants and bequests $6,700 Chancery assessment 137,998 Priests salary subsidy 18,530 Fees for services 13,010 Advertising revenue 5,649 Retreat fees 500 Rental Income 4,397 Insurance 60,165 Investment Income 1,389 Miscellaneous 1,207 -------------- Total Support & Revenue 249,546 Expense Program Services: Archives 2,470 Catholic Commitments & Social Services 12,635 Evangelization & Hispanic Ministry 5,433 Catechesis Office 6,230 Formation Office 5,402 Department of Catholic Schools 19,383 Clergy, religious & seminarian advancement 73,704 Parish Assistance 22,922 Catholic Social Mission 3,778 Supporting Services: Office of Bishop Emeritus 2,010 Offices of the Bishop, et al. 28,153 Office of Women Religious 1,126 General & Administrative 4,450 Fiscal & Employee Services 41,319 Office of Child, Adolescent, et al. Protection 7,803 Communications & Community Relations 15,398 Property Management 33,308 Insurance Administration (31,872) Reorganization 78,456 Imputed interest on settlement 14,095 Provision for doubtful accounts 5,833 Depreciation 3,643 -------------- Total Expenses 355,681 -------------- Excess (deficiency) of revenues over expenses ($106,135) ============== The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole Current Month's Receipts and Disbursements January 1, 2005 through January 31, 2005 Cash and Bank Balance: Beginning of Month $444,035 Receipts Cash Sales 15,795 Accounts Receivable -- Prepetition 62,732 Accounts Receivable -- Postpetition 382,802 Loans and Advances 0 Sale of Assets 0 Transfers in from other accounts 125,596 Other -- Custodial Funds 27,808 Other -- Payroll Reimbursements 0 Credit Adjustments 0 -------------- Total Receipts 614,733 Disbursements: Business -- Ordinary Operations 689,922 Capital Improvements 0 Prepetition Debt 0 Transfers to other DIP Accounts 125,596 Other -- Custodial Funds 4,312 Other -- TRF to Wells Fargo Investment 0 Other -- Payroll Reimbursement 10,399 Reorganization Expenses: Attorney Fees 0 Accountant Fees 0 Other Professional Fees 0 Other (Advertising) 0 U.S. Trustee Quarterly Fee 5,000 Court Costs 0 -------------- Total Disbursements 835,228 -------------- Cash & Bank Balance -- End of Month $223,540 ============== 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. 19; Bankruptcy Creditors' Service, Inc., 215/945-7000) COMMERCE ONE: Posts $45,006 Net Loss in January 2005 ---------------------------------------------------- On Feb. 22, 2005, Commerce One, Inc. (n/k/a CO Liquidation, Inc.) filed its monthly operating report for the month ending Jan. 31, 2005, with the United States Bankruptcy Court for the Northern District of California. The Company posted a $45,006 net loss on $57,962 of net sales for one month. At Jan. 31, 2005, Commerce One's balance sheet showed: Current Assets $14,760,626 Total Assets 14,760,626 Current Liabilities 847,770 Total Liabilities 34,341,557 Total Stockholder's Deficit ($19,580,931) A full-text copy of Commerce One's January 2005 Monthly Operating Report is available at no charge at: http://sec.gov/Archives/edgar/data/1131806/000113180605000005/exh99-1.htm Headquartered in San Francisco, California, Commerce One, Inc. (n/k/a CO Liquidation, Inc.) -- http://www.commerceone.com/ -- provides software services that enable businesses to conduct commerce over the Internet. Commerce One, Inc., and its wholly owned subsidiary, Commerce One Operations, Inc., filed for chapter 11 protection on Oct. 6, 2004 (Bankr. N.D. Calif. Case Nos. 04- 32820 and 04-32821). Doris A. Kaelin, Esq., and Lovee Sarenas, Esq., at the Murray and Murray, represent the Debtors. When the Debtors filed for bankruptcy, they listed $14,531,000 in total assets and $12,442,000 in total debts. As of December 2, 2004, Commerce One estimates that its liabilities owed to creditors total approximately $9.7 million, including approximately $5.1 million owed to ComVest. The company expects that total liabilities will continue to increase over time. FRESH CHOICE: Posts $937,262 Net Loss for Period Ended Jan. 23 -------------------------------------------------------------- On Feb. 18, 2005, Fresh Choice, Inc., filed its monthly operating report for the four-week period ended Jan. 23, 2005, with the United States Bankruptcy Court for the Northern District of California. The Company reported a $937,262 net loss in $4,772,534 of total revenues for the period from Dec. 27, 2004, through Jan. 23, 2005. At Jan. 23, 2005, Fresh Choice, Inc.'s balance sheet shows: Current Assets $6,392,186 Total Assets 21,627,670 Current Liabilities 7,242,452 Total Prepetition Liabilities 13,070,361 Total Liabilities 22,242,042 Total Stockholders' Equity Deficit $ (614,372) A full-text copy of Fresh Choice, Inc.'s Monthly Operating Report for the period ended Jan. 23, 2005, is available at no charge at: http://sec.gov/Archives/edgar/data/893741/000115752305001769/a4828362ex991.t xt 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: Posts $588,000 Net Income for January 2005 ------------------------------------------------------------- On Feb. 18, 2005, Hawaiian Airlines, the sole operating subsidiary of Hawaiian Holdings, Inc., filed its unaudited January 2005 Monthly Operating Report with the United States Bankruptcy Court for the District of Hawaii. The carrier reports earning $588,000 on $62,901,000 of revenues for the month of January 2005. For the month ending January 31, 2005, Hawaiian Airlines' balance sheet showed: Total Current Assets $235,760,000 Total Assets 347,910,000 Total Current Liabilities 221,819,000 Total Liabilities 418,440,000 Liabilities Subject to Compromise 216,668,000 Shareholder's Deficit ($287,198,000) A full-text copy of Hawaiian Airlines' January 2005 Monthly Operating Report is available at no charge at: http://sec.gov/Archives/edgar/data/1172222/000095013605000965/file002.htm 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. INTERMET CORP: Posts $3,149,000 Net Loss in January 2005 -------------------------------------------------------- On Feb. 28, 2005, Intermet Corporation and its debtor-affiliates delivered its January 2005 monthly operating report to the U.S. Bankruptcy Court for the Eastern District of Michigan. For the month ending Jan. 31, 2005, Intermet Corporation reported net loss of $3,149,000 against $59,550,000 net sales. On Jan. 31, 2005, Intermet's balance sheet showed: Current Assets $150,932,000 Total Assets 464,516,000 Postpetition Debts 19,317,000 Total Liabilities 571,208,000 Total Stockholders' Equity Deficit ($106,692,000) A full-text copy of Intermet Corporation's January 2005 Monthly Operating Report is available at no charge at: http://sec.gov/Archives/edgar/data/745287/000095012405001100/k92469exv99w1.t xt Headquartered in Troy, Michigan, Intermet Corporation -- http://www.intermet.com/ -- provides machining and tooling services for the automotive and industrial markets specializing in the design and manufacture of highly engineered, cast automotive components for the global light truck, passenger car, light vehicle and heavy-duty vehicle markets. Intermet, along with its debtor-affiliates, filed for chapter 11 protection on Sept. 29, 2004 (Bankr. E.D. Mich. Case Nos. 04-67597 through 04-67614). Salvatore A. Barbatano, Esq., at Foley & Lardner LLP, represents the Debtors. When the Debtors filed for protection from their creditors, they listed $735,821,000 in total assets and $592,816,000 in total debts. INTERSTATE BAKERIES: Files Financial Statements Ending Jan. 8 ------------------------------------------------------------- Interstate Bakeries Corporation and Subsidiaries Unaudited Consolidated Monthly Operating Report Four Weeks Ended January 8, 2005 REVENUE Gross Income $238,181,434 Less Cost of Goods Sold Ingredients, Packaging, & Outside Purchasing 56,897,640 Direct & Indirect Labor 46,092,413 Overhead & Production Administration 12,867,560 ------------ Total Cost of Goods Sold 115,857,613 ------------ Gross Profit $122,323,821 ------------ OPERATING EXPENSES Owner-Draws/Salaries - Selling & Delivery Employee Salaries $60,402,147 Advertising and Marketing 2,169,984 Insurance (Property, Casualty, & Medical) 14,815,006 Payroll Taxes 5,216,177 Lease and Rent 4,700,160 Telephone and Utilities 1,691,941 Corporate Expense (Including Salaries) 7,499,999 Other Expenses 29,152,952 ------------ Total Operating Expenses $125,648,366 ------------ EBITDA ($3,324,545) Restructuring Charges 299,715 Reorganization Professional Fees 3,538,429 Depreciation and Amortization 6,868,669 Other Income (2,000) Interest Expense 3,236,949 ------------ Operating Income (Loss) (17,266,307) Income Tax Expense (Benefit) (5,281,851) ------------ Net Income (Loss) ($11,984,456) ============ CURRENT ASSETS Accounts Receivable at end of period $174,905,405 Increase (Decrease) in Accounts Receivable (2,413,674) Inventory at end of period 72,256,564 Increase (Decrease) in Inventory for period (489,927) Cash at end of period 90,095,807 Increase (decrease) in Cash for period (9,384,739) LIABILITIES Increase (Decrease) in Liabilities Not Subject to Compromise 507,029 Increase (Decrease) in Liabilities Subject to Compromise 298,503 Taxes payable: Federal Payroll Taxes 12,728,346 State/Local Payroll Taxes 5,279,942 State Sales Taxes 675,558 Real Estate and Personal Property Taxes 11,125,999 Other 6,323,787 ------------ Total Taxes Payable $36,133,632 ------------ 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. (Interstate Bakeries Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service, Inc., 215/945-7000) PARMALAT: Finanziaria Reports January 2005 Financial Results ------------------------------------------------------------ Parmalat Finanziaria SpA in Extraordinary Administration reports the operating and financial results for the Parmalat Group as at January 31, 2005. Scope of Consolidation The scope of consolidation has been defined using principles that are consistent with those adopted in preparing the statement of income and balance sheet at December 31, 2004. Companies that are subject to certain restrictions on their management as a result of local bankruptcy proceedings that have effectively placed them outside the control of Parmalat Finanziaria SpA in Extraordinary Administration, and companies in voluntary liquidation are no longer consolidated on a line-by-line basis. The current scope of consolidation no longer includes companies in which the Group held equity investments that were sold after January 1, 2005. The corresponding 2004 data have been restated accordingly on a pro forma basis. The operations divested in 2005 include the companies that comprised the USA Bakery Division (Mother's Cake & Cookies, Archway Cookies and three production units in Canada), which were sold in January 2005, and Parmalat Uruguay, which was sold in February 2005. Financial Highlights Cumulative Through January (in EUR millions) Revenues -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 267.5 267.5 287.6 Non Core Activities 48.5 46.0 36.4 -------- ------------- ------- Total 316.0 313.5 324.0 ======== ============= ======= EBITDA -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 16.2 16.2 17.6 Non Core Activities (8.9) (8.9) (2.2) -------- ------------- ------- Subtotal 7.4 7.4 15.4 Proceedings costs (4.9) (4.9) (5.0) -------- ------------- ------- Total 2.5 2.5 10.4 ======== ============= ======= % of Revenues -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 6.1 6.1 6.1 Non Core Activities (18.3) (19.3) (6.0) -------- ------------- ------- Subtotal 2.3 2.4 4.8 Total 0.8 0.8 3.2[sic] ======== ============= ======= * The Core Businesses include beverages (milk and fruit juices) and functional dairy products, which are sold under approximately 30 brands primarily in high-potential countries in which there is sustained demand for wellness products, consumers are willing to pay a premium price for Parmalat brands and there is access to leading-edge technologies. ** The Non-core Businesses are those that are located in countries or engaged in activities that are not strategically significant and have been earmarked for divestiture. Core Businesses The Group's Core Businesses had revenues of EUR287.6 million at January 31, 2005, up 7.5% from the EUR267.5 million booked in the same period last year. At EUR17.6 million, EBITDA were 8.6% higher than the EUR16.2 million earned in January 2004. These data do not reflect the impact of the nonrecurring charges incurred in connection with the extraordinary administration proceedings, which amounted to about EUR5.0 million, in line with January 2004. [Parmalat provides an] analysis of the Group's results in the main geographic regions in which it operates: -- Italy Revenues totaled EUR100.7 million in January 2005, or 8.1% less than the EUR109.6 million booked in the same month last year. The shortfall in net revenues was accompanied by a decrease in EBITDA, which declined both in absolute terms (from EUR9.4 million in January 2004 to EUR8.1 million in January 2005) and as a percentage of net revenues (from 8.5% to 8.0%). A drop in unit sales by the Milk Division (fresh milk in particular) and the Produce Division is the main reason for the decline in net revenues. In addition, higher promotional and advertising expenses contributed to the EBITDA deterioration as compared with January 2004, which, however, should be temporary. -- Spain At EUR14.1 million, January 2005 revenues were 12.4% less than the EUR16.1 million reported in the same month last year. EBITDA totaled EUR0.7 million, a slight improvement over the EUR0.6 million earned in January 2004. Margins were also up, with EBITDA rising from 3.7% to 4.8% of revenues. An across-the-board decrease in unit sales, which reflects unfavorable business conditions in the domestic market, is among the main reasons for the decrease in net revenues. -- South Africa In January 2005, revenues rose to EUR20.2 million, or 13.5% more than the EUR17.8 million booked in the same month last year. However, EBITDA decreased both in absolute terms (from EUR1.9 million in January 2004 to EUR1.3 million this year) and as a percentage of net revenues (from 10.6% to 6.5% of revenues). The main reasons for the improvement in revenues include the appreciation of the South African rand versus the euro (average exchange rate up 10.7% compared with January 2004) and an increase in total unit sales (shipments of pasteurized milk, fruit juices and yogurt were up, but deliveries of UHT milk and cheese were down). The result for January 2005 was adversely affected by inefficiencies in the distribution network and higher promotional expenses. -- Venezuela In January 2005, the Venezuelan operations reported revenues of EUR12.1 million, a gain of 30.1% compared with the EUR9.3 million booked in January 2004. EBITDA also improved, rising both in absolute terms (from a negative EUR0.5 million at January 31, 2004 to a positive EUR0.8 million this year) and on a percentage basis (from a negative 5.2% of revenues to a positive 6.8% of revenues). This positive performance was achieved despite the negative impact of a weak bolivar, which continued to lose value versus the euro (-24.8% compared with the average exchange rate for January 2004). The results reported in January, along with those for the preceding few months, point to the beginning of a turnaround for the Venezuelan companies, made possible by the recent implementation of reorganization and refocusing programs. In the coming months, additional changes in the social policies pursued by the Venezuelan government will require a further revision of the business model used by the Group's local companies. -- Canada Revenues totaled EUR101.5 million in January 2005, up sharply from the EUR75.0 million reported in the same month last year. The revenue gain had a positive impact on EBITDA, which rose both in absolute terms (from EUR2.8 million in January 2004 to EUR5.6 million this year) and on a percentage basis (from 3.8% of revenues to 5.6% of revenues). Higher unit sales and sales prices for all Canadian products, and an increase in sales days compared with January 2004 account for this improvement. -- Australia In January 2005, revenues decreased to EUR29.6 million, or 7.2% less than the EUR31.9 million booked in January 2004, but EBITDA held steady at EUR1.6 million. The Australian operations were able to hold total unit sales at about the same level as in January 2004 (lower shipments of yogurt, desserts and tea were offset by higher sales of pasteurized and UHT milk), but their performance was adversely affected by a modest depreciation of the Australian dollar versus the euro (-4.7% compared with the average rate in January 2004). Non-core Businesses In January 2005, the Group's Non-core Businesses reported revenues of EUR36.4 million, a decrease of 20.9% from pro forma revenues of EUR46.0 million in January 2004. However, even though net revenues were down, EBITDA improved from a negative EUR8.9 million to a negative EUR2.2 million, due mainly to a sharp reduction in the losses reported by Parma F.C. NET FINANCIAL POSITION Highlights (in EUR millions) Balance Balance Balance as at as at as at 06/30/04 12/31/04 01/31/05 -------- -------- -------- Short term financial assets (130.5) (368.2) (369.5) broken down as: Financial assets not held as fixed assets (5.4) (0.4) (0.3) Liquid assets (125.1) (367.7) (369.2) Financial accrued income and prepaid expenses (incl. intra-Group) (55.0) (25.6) (17.1) -------- -------- -------- Total short-term financial assets (185.5) (393.8) (386.6) ======== ======== ======== Financial debts 11,408.0 11,386.7 11,273.5 Financial accrued expenses & deferred income 246.6 231.2 225.9 -------- -------- -------- Total financial liabilities 11,654.6 11,617.9 11,499.4 Indebtedness owed to lenders outside the Group/ (Financial assets) of companies consolidated line-by-line 11,469.1 11,224.1 11,112.8 Indebtedness owed by companies consolidated line-by-line to companies that are parties to local composition-with-creditors proceedings 745.8 728.0 728.0 Indebtedness/(Financial assets) of companies consolidated line-by-line 12,214.9 11,952.2 11,840.8 Indebtedness/(Financial assets) of companies not consolidated line-by-line 4.3 6.9 6.9 -------- -------- -------- Total indebtedness/ (financial assets) 12,219.2 11,959.0 11,847.7 ======== ======== ======== At January 31, 2005, the Group's total indebtedness had decreased to EUR11,847.7 million, or EUR111.4 million less than the EUR11,959.0 million it owed at December 31, 2004. The deconsolidation of divested businesses (Parmalat Uruguay) and a restatement of debt positions booked to reflect changes in the verified claims included in the lists of unsecured creditors account for this improvement. The combined indebtedness owed to lenders outside the Group by subsidiaries that are parties to local composition-with- creditors proceedings and, consequently, have been deconsolidated is not reflected in the net financial position. At December 31, 2004, these borrowings totaled EUR2,484.4 million (EUR2,437.3 million at June 30, 2004). Because some of these borrowings are secured by guarantees provided by Parmalat SpA and Parmalat Finanziaria SpA in the amount of EUR1,668.1 million (EUR1,753.4 million at June 30, 2004), a reserve for risks of an amount equal to the guaranteed indebtedness (EUR1,675.2 million) was recognized in the consolidated financial statements at June 30, 2004. Based on currently available information, it would seem reasonable to adjust the reserve amount to EUR1,657.1 million. The consolidated financial statements also show that indebtedness owed by the Group to companies in special proceedings who are not consolidated line by line amounted to EUR728.0 million (EUR745.8 million at June 30, 2004). As of today, no amount has been drawn from the EUR105.8 million line of credit provided to Parmalat SpA by a pool of banks on March 4, 2004. A breakdown of the net indebtedness owed to lenders outside the Group by companies consolidated line by line: (in EUR millions) Balance Balance Balance as at as at as at 06/30/04 12/31/04 01/31/05 -------- -------- -------- Companies in EA subject to proposed composition with creditors 10,084.0 9,928.8 9,819.2 Other companies in EA 42.8 106.7 99.6 Other companies 1,342.3 1,188.6 1,194.1 -------- -------- -------- Total indebtedness/ (financial assets) 11,469.1 11,224.1 11,112.8 ======== ======== ======== Companies Under Extraordinary Administration The net indebtedness incurred by companies under extraordinary administration toward lenders outside the Group prior to their becoming eligible for extraordinary administration is all short- term, since all of these companies are in default of the covenants of the respective loan agreements. Liquid assets held by the companies included in the Proposal of Composition with Creditors were relatively unchanged (EUR230.1 million at January 31, 2005, compared with EUR235.3 million at December 31, 2004). The decrease in total indebtedness owed to lenders outside the Group by other companies under extraordinary administration is due mainly to an increase in liquid assets held by Boschi Luigi e Figli S.p.A. Other Companies The net indebtedness owed to lenders outside the Group by the remaining operating and financial companies consolidated line by line that are not included in the extraordinary administration proceedings totaled EUR1,194.1 million (including EUR685.5 million in long-term debt) at January 31, 2005, little changed from the EUR1,188.6 million owed at December 31, 2004, following the deconsolidation of the indebtedness of Parmalat Uruguay and the sale of the equity investment in that company for EUR22.0 million. Some Group companies are currently renegotiating their indebtedness in order to restructure it. Principal Companies Under Extraordinary Administration Financial highlights of the principal Italian companies under extraordinary administration: Parmalat Finanziaria SpA (Amounts in millions of Euros) (in EUR millions) Balance Balance Balance as at as at as at 06/30/04 12/31/04 01/31/05 -------- -------- -------- Short-term financial assets (140.0) (17.8) (18.4) broken down as: Intra-Group loans receivable (138.8) (17.1) (17.1) Financial assets not held as fixed assets (0.0) - - Liquid assets (1.1) (0.7) (1.3) Financial accrued income and prepaid expenses (including intra-Group) - (0.1) - -------- -------- -------- Total short-term financial assets (140.0) (18.0) (18.4) ======== ======== ======== Financial liabilities (including intra-Group) 1,272.9 1,278.8 1,281.3 broken down as: Intra-Group loans payable 1,010.9 1,016.8 1,014.8 Other financial debts 262.0 262.0 266.5 Financial accrued expenses and deferred income (including intra-Group) 4.7 4.7 - -------- -------- -------- Total financial liabilities 1,277.6 1,283.5 1,281.3 -------- -------- -------- Total indebtedness/ (financial assets) 1,137.6 1,265.6 1,262.9 ======== ======== ======== At January 31, 2005, the indebtedness of Parmalat Finanziaria SpA had declined compared with the previous month thanks to an increase in liquid assets and a decrease in intra-Group loans payable, following the repayment of a EUR2.0-million loan owed to Parmalat SpA. Parmalat SpA (Amounts in millions of Euros) (in EUR millions) Balance Balance Balance as at as at as at 06/30/04 12/31/04 01/31/05 -------- -------- -------- Short-term financial assets (61.7) (155.7) (143.5) broken down as: Intra-Group loans receivable (38.6) (36.5) (33.7) Financial assets not held as fixed assets - - - Liquid assets (23.2) (119.2) (109.7) Financial accrued income and prepaid expenses (including intra-Group) - (0.1) - -------- -------- -------- Total short-term financial assets (61.7) (155.8) (143.5) ======== ======== ======== Financial liabilities (including intra-Group) 4,144.1 3,891.6 3,776.6 broken down as: Intra-Group loans payable 1,266.2 1,007.0 1,007.0 Other financial debts 2,877.9 2,884.6 2,769.6 Financial accrued expenses and deferred income (including intra-Group) - - - -------- -------- -------- Total financial liabilities 4,144.1 3,891.6 3,776.6 -------- -------- -------- Total indebtedness/ (financial assets) 4,082.4 3,735.7 3,633.1 ======== ======== ======== The decrease in indebtedness at January 31, 2005 compared with the previous month is due mainly to the January restatement of debt positions booked to reflect changes in the verified claims included in the final lists of unsecured creditors approved by the Court. In January 2005, the amount of intra-Group loans receivable was adjusted to reflect the repayment of a EUR2.0 million loan by Parmalat Finanziaria and the recognition of write-downs totaling EUR0.7 million. Eurolat SpA (Amounts in millions of Euros) (in EUR millions) Balance Balance Balance as at as at as at 06/30/04 12/31/04 01/31/05 -------- -------- -------- Short-term financial assets (23.2) (8.7) (12.3) broken down as: Intra-Group loans receivable - (2.2) (2.2) Financial assets not held as fixed assets - - - Liquid assets (23.2) (6.5) (10.1) Financial accrued income and prepaid expenses (including intra-Group) - (0.1) (0.0) -------- -------- -------- Total short-term financial assets (23.2) (8.8) (12.3) ======== ======== ======== Financial liabilities (including intra-Group) 189.3 188.2 188.2 broken down as: Intra-Group loans payable 45.8 43.8 43.8 Other financial debts 143.5 144.4 144.4 Financial accrued expenses and deferred income (including intra-Group) 0.7 - - -------- -------- -------- Total financial liabilities 190.0 188.2 188.2 -------- -------- -------- Total indebtedness/ (financial assets) 166.8 179.4 175.9 ======== ======== ======== The liquid assets held by Eurolat SpA increased in January 2005. Lactis SpA (Amounts in millions of Euros) (in EUR millions) Balance Balance Balance as at as at as at 06/30/04 12/31/04 01/31/05 -------- -------- -------- Short-term financial assets (3.7) (4.4) (4.4) broken down as: Intra-Group loans receivable - - - Financial assets not held as fixed assets - - - Liquid assets (3.7) (4.4) (4.4) Financial accrued income and prepaid expenses (including intra-Group) (0.0) (0.0) (0.0) -------- -------- -------- Total short-term financial assets (3.7) (4.4) (4.4) ======== ======== ======== Financial liabilities (including intra-Group) 19.1 19.1 19.1 broken down as: Intra-Group loans payable 8.6 8.6 8.6 Other financial liabilities 10.5 10.5 10.5 Financial accrued expenses and deferred income (including intra-Group) - 0.0 0.0 -------- -------- -------- Total financial liabilities 19.1 19.1 19.1 -------- -------- -------- Total indebtedness/ (financial assets) 15.4 14.7 14.7 ======== ======== ======== The indebtedness of Lactis SpA at January 31, 2005, was unchanged compared with the previous month. Significant Events January 13 Boschi Luigi e Figli S.p.A. is declared insolvent. January 28 The Canadian subsidiary Parmalat Dairy & Bakery sells its USA Bakery Division (Mother's Cake & Cookies, Archway Cookies and three production units in Canada). It also signs a licensing agreement that will allow the disposal of its remaining inventory. This transaction, which was authorized by the Italian Ministry of Production Activities, in consultation with the Oversight Committee, allows full repayment of a loan that Parmalat SpA in Amministrazione Straordinaria provided at the beginning of 2004 and will furnish the Canadian subsidiary with a stream of future revenues. January 31 The Italian Antitrust Agency hands down its decisions in the two investigative proceedings it launched against Parmalat in matters involving the Group's status with respect to Carnini S.p.A. and Newlat S.r.l. February 1 The Extraordinary Commissioner files an action to void pursuant to Article 67 of the Italian Bankruptcy Law against Morgan Stanley Limited and Morgan Stanley Bank. February 16 Lacteria SA sells Parmalat Uruguay. Headquartered in Wallington, New Jersey, Parmalat USA Corporation -- http://www.parmalatusa.com/ -- generates more than 7 billion euros in annual revenue. The Parmalat Group's 40-some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices and employs over 36,000 workers in 139 plants located in 31 countries on six continents. The Company filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP represent the Debtors in their restructuring efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417 in debts. (Parmalat Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., 215/945-7000) PARMALAT: Releases Monthly Operating Report Ended Dec. 25, 2004 --------------------------------------------------------------- Parmalat USA Corporation Balance Sheet As of December 25, 2004 Assets Cash & Cash Equivalents $0 Accounts Receivable-Net 0 Notes Receivable -Current 0 Inventory 0 Prepaid Expenses 0 Other Current Assets 0 -------------- Total Current Assets 0 Fixed Assets 0 Accumulated Depreciation 0 -------------- Net Fixed Assets 0 Other Assets 191,119,549 Intercompany Receivables 10,392,497 -------------- Total Assets $201,512,046 ============== Liabilities Subject to Compromise Long Term Debt & Interest $20,110,681 Intercompany payables 216,824,527 -------------- Total Liabilities Subject to Compromise 236,935,208 Liabilities Accounts Payable 0 Notes & Loans Payable 0 Accrued Expenses 0 Intercompany Payables 0 -------------- Total Liabilities 236,935,208 Equity Common Stock 1,388,356 Paid In Capital 227,962,103 Retained Earnings (110,643,290) YTD Net Income/(Loss) (154,130,331) -------------- Total Equity (35,423,162) -------------- Total Liabilities & Owners' Equity $201,512,046 ============== Parmalat USA Corporation Income Statement From November 21, 2004, to December 25, 2004 Revenues Gross sales - Less: Returns & discounts - -------------- Net sales $0 Expenses Raw Materials & Ingredients - Packaging - Direct Labor - Power - Freight - Distribution - Industrial Depreciation - Production Overhead - Warehouse (Cooler) - Marketing Costs - Sales Admin Expenses - General Expenses - Financial Costs (703,737) Goodwill/trademarks 18,226 Extraordinary - Corporate Allocation - Depreciation - Amortization - Income Taxes - -------------- Total Expenses (685,511) Reorganization Expenses 153,711,045 -------------- Net Profit (Loss) ($153,025,534) ============== Parmalat USA Corporation received no cash nor made disbursements from November 21, 2004, to December 25, 2004. Headquartered in Wallington, New Jersey, Parmalat USA Corporation -- http://www.parmalatusa.com/ -- generates more than 7 billion euros in annual revenue. The Parmalat Group's 40-some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices and employs over 36,000 workers in 139 plants located in 31 countries on six continents. The Company filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP represent the Debtors in their restructuring efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417 in debts. (Parmalat Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., 215/945-7000) PARMALAT: Milk Products' December 2004 Monthly Operating Report --------------------------------------------------------------- Milk Products of Alabama, LLC Balance Sheet As of December 25, 2004 Assets Cash & Cash Equivalents $8,313,560 Accounts Receivable-Net 47,558 Inventory 0 Prepaid Expenses 0 Other Current Assets 0 -------------- Total Current Assets 8,361,118 Fixed Assets 0 Accumulated Depreciation 0 -------------- Net Fixed Assets 0 Other Assets 0 Intercompany Receivables 2,705,407 -------------- Total Assets $11,066,525 ============== Liabilities Subject to Compromise Accrued Expenses $3,910,679 Intercompany payables 4,967,846 -------------- Total Liabilities Subject to Compromise 8,878,525 Liabilities Accounts Payable 0 Accrued Expenses 75,591 -------------- Total Current Liabilities 75,591 Long Term Notes Payable -- Intercompany - Other 2,441,401 -------------- Total Long Term Liabilities 2,441,401 Intercompany Payables 0 -------------- Total Liabilities 11,395,517 Equity Retained Earnings 18,414 YTD Net Income/(Loss) (347,406) -------------- Total Equity (328,992) -------------- Total Liabilities & Owners' Equity $11,066,525 ============== Milk Products of Alabama, LLC Income Statement From November 21, 2004, to December 25, 2004 Revenues Gross sales $0 Less: Returns & discounts 0 -------------- Net sales 0 Expenses Raw Materials & Ingredients 0 Packaging 0 Direct Labor 0 Power 0 Freight 0 Industrial Depreciation 0 Production Overhead 0 Warehouse (Cooler) 0 Marketing Costs 0 Sales Admin Expenses 0 General Expenses 0 Financial Costs (1,598) Other (Income) Expense 0 Extraordinary (44,327) Corporate Allocation 0 Income Taxes 0 -------------- Total Expenses (45,925) Reorganization Expenses Professional Fees 293,542 U.S. Trustee Fees - Other 9,565,335 -------------- Total Reorganization Expenses 9,858,877 -------------- Net Profit (Loss) ($9,812,952) ============== Milk Products of Alabama, LLC Cash Receipts and Disbursements From November 21, 2004, to December 25, 2004 Cash - Beginning of Month $10,982,076 Receipts From Operations Cash Sales - Collection of Accounts Receivable Prepetition 0 Postpetition 179,604 -------------- Total Operating Receipts 179,604 Non - Operating Receipts Transfers 0 Other 50,669 -------------- Total Non-Operating Receipts 50,669 -------------- Total Receipts 230,273 -------------- Total Cash Available 11,212,349 Operating Disbursements Purchased Products - Consulting Fees - Ingredients 417 Licenses & Taxes - Packaging - R & M, Parts, Supplies - Other 25 Utilities - Marketing Costs - Securitization Payment 2,631,650 Sales Admin Expenses - General Expenses - Title Fees - Employee-related - Freight/Transportation 1,385 Corporate Allocation - Income Taxes - -------------- Total expenses 2,633,476 Reorganization Expenses Professional Fees 265,312 U.S. Trustee Fees - DIP Interest & Fees - -------------- Total Reorganization Expenses 265,312 -------------- Total Disbursements 2,898,788 -------------- Net Cash Flow (2,668,515) -------------- Cash - End of Month $8,313,560 ============== Headquartered in Wallington, New Jersey, Parmalat USA Corporation -- http://www.parmalatusa.com/ -- generates more than 7 billion euros in annual revenue. The Parmalat Group's 40-some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices and employs over 36,000 workers in 139 plants located in 31 countries on six continents. The Company filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP represent the Debtors in their restructuring efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417 in debts. (Parmalat Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., 215/945-7000) PARMALAT: Farmland Dairies' December 2004 Monthly Operating Report ------------------------------------------------------------------ Farmland Dairies, LLC Balance Sheet As of December 25, 2004 Assets Cash & Cash Equivalents $11,973,550 Accounts Receivable-Trade 36,169,505 Accounts Rec.-Securitization (29,393,350) Notes Receivable 161,968 Inventory 11,377,301 Prepaid Expenses 8,196,035 Other Current Assets 5,817,304 -------------- Total Current Assets 44,302,313 Fixed Assets 176,712,690 Accumulated Depreciation 98,188,458 -------------- Net Fixed Assets 78,524,232 Other Assets 8,462,659 Intercompany Receivables 14,347,591 -------------- Total Assets $145,636,795 ============== Liabilities Subject to Compromise: Accounts Payable 21,125,765 Accrued Expenses 0 Intercompany Payables 21,627,999 Capital Lease 96,226,490 -------------- Total Liabilities Subject to Compromise 138,980,254 Liabilities: Notes & Loans Payable 0 Capital Leases - Short Term 0 Accounts Payable 13,943,701 Accrued Expenses 25,089,512 -------------- Total Current Liabilities 39,033,213 Notes & Loans Payable 32,240,852 Capital Leases - Long Term 37,646 Other 5,143,375 -------------- Total Long Term Liabilities 37,421,873 Intercompany Payables 0 -------------- Total Liabilities 215,435,340 Equity Paid In Capital 161,506,590 Accum Comprehensive Income (4,009,205) Retained Earnings 11,323,693 YTD Net Income/(Loss) (238,619,623) -------------- Total Equity (69,798,545) -------------- Total Liabilities & Owners' Equity $145,636,795 ============== Farmland Dairies, LLC Income Statement From November 21, 2004, to December 25, 2004 Revenues Gross sales $38,044,547 Less: Returns & discounts 888,406 -------------- Net sales 37,156,141 Expenses Raw Materials & Ingredients 24,106,242 Packaging 2,908,807 Direct Labor 997,145 Power 528,286 Freight 353,336 Distribution 2,978,163 Industrial Depreciation 432,823 Production Overhead 2,785,380 Warehouse (Cooler) 3,703,976 Marketing Costs 664,787 Sales Admin Expenses 419,657 General Expenses 7,880,886 Financial Costs (3,749,421) Goodwill/trademarks 8,446 Extraordinary 114,409 Corporate Allocation 0 Provision for Income Taxes (885) -------------- Total Expenses 44,132,037 Reorganization Expenses 185,479,563 -------------- Net Profit (Loss) ($192,455,459) ============== Farmland Dairies, LLC Cash Receipts and Disbursements From November 21, 2004, to December 25, 2004 Cash - Beginning of Month $9,738,595 Receipts From Operations Cash Sales 0 Collection of Accounts Receivable Prepetition 184,645 Postpetition 38,775,827 -------------- Total Operating Receipts 38,960,472 Non - Operating Receipts Payments from/(to) GE Capital 1,000,000 Voided Checks (Prepetition) - Adjustments 2,422 Deposits -- Other 140,279 Transfers 0 -------------- Total Non-Operating Receipts 1,142,702 -------------- Total Receipts 40,103,173 -------------- Total Cash Available 49,841,768 Operating Disbursements Chemicals 603,187 Commissions 100,227 Consulting/Legal 143,147 Co-packing 802,085 Employee & Employee-related expenses 1,133,468 Equipment Leases 415,044 Freight & Postage 252,851 Fuel 176,021 Transportation 739,233 Ingredients 1,099,927 Insurance 122,184 Lab Fees 45,326 Licenses & Taxes 102,316 Marketing 69,458 Other 592,707 Packaging 2,696,483 Pallets/Cases/Bossies 265,502 Milk Producers 15,469,600 Marketing Administrator 604,358 Purchased Products 1,069,249 R & M, Parts, Supplies 1,314,754 Raw Milk 1,527,021 Rebates 191,148 Rent 394,929 Security 181,752 Temporary Labor 129,066 Travel & Entertainment 50,664 Utilities 852,106 Securitization Payments 2,326,148 Payroll 3,849,236 Payroll Taxes 524,738 Voided Checks (Postpetition) (1,747,907) -------------- Total expenses 36,187,164 Reorganization Expenses Professional Fees 1,485,132 U.S. Trustee Fees 0 DIP Interest & Fees 195,923 -------------- Total Reorganization Expenses 1,681,055 -------------- Total Disbursements 37,868,219 -------------- Net Cash Flow 2,234,955 -------------- Cash - End of Month $11,973,550 ============== Headquartered in Wallington, New Jersey, Parmalat USA Corporation -- http://www.parmalatusa.com/ -- generates more than 7 billion euros in annual revenue. The Parmalat Group's 40-some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices and employs over 36,000 workers in 139 plants located in 31 countries on six continents. The Company filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP represent the Debtors in their restructuring efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417 in debts. (Parmalat Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., 215/945-7000) SOLUTIA INC: Posts $3 Million Net Loss for January 2005 ------------------------------------------------------- Solutia Chapter 11 Debtors Unaudited Statement of Consolidated Financial Position As of January 31, 2005 ASSETS Current Assets: Cash $42,000,000 Trade Receivables, net 154,000,000 Account Receivables-Unconsolidated subsidiaries 53,000,000 Inventories 158,000,000 Other Current Assets 82,000,000 ------------- Total Current Assets 489,000,000 Property, Plant and Equipment, net 697,000,000 Investments in Affiliates 502,000,000 Intangible Assets, net 101,000,000 Other Assets 99,000,000 ------------- TOTAL ASSETS $1,888,000,000 ============= LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities Accounts Payable $172,000,000 Short Term Debt 305,000,000 Other Current Liabilities 172,000,000 ------------- Total Current Liabilities 649,000,000 Other Long-Term Liabilities 210,000,000 ------------- Total Liabilities Not Subject to Compromise 859,000,000 Liabilities Subject to Compromise 2,298,000,000 Shareholders' Deficit (1,269,000,000) ------------- TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $1,888,000,000 ============= Solutia Chapter 11 Debtors Unaudited Consolidated Statement of Operations For the Month Ended January 31, 2005 Total Net Sales $197,000,000 Total Cost Of Goods Sold 175,000,000 ------------- Gross Profit 22,000,000 Total MAT Expense 16,000,000 ------------- Operating Income 6,000,000 Equity Income from Affiliates 3,000,000 Interest Expense, net (5,000,000) Reorganization Items: Professional fees (3,000,000) Adjustments to allowed claim amounts (4,000,000) ------------- Total Reorganization Items (7,000,000) ------------- Loss Before Taxes (3,000,000) Income Tax - ------------- NET LOSS ($3,000,000) ============= Headquartered in St. Louis, Missouri, Solutia, Inc. -- http://www.solutia.com/ -- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. The Company filed for chapter 11 protection on December 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. (Solutia Bankruptcy News, Issue No. 34; Bankruptcy Creditors' Service, Inc., 215/945-7000) SPIEGEL INC: Earns $144 Million of Net Income in January 2005 ------------------------------------------------------------- Spiegel, Inc., and Subsidiaries Debtors-in-Possession Unaudited Consolidated Balance Sheet As of January 1, 2005 ASSETS Current assets: Cash and cash equivalents $348,478,000 Receivables, net 42,004,000 Inventories 152,296,000 Prepaid expenses 29,081,000 Assets of discontinued operations 54,355,000 -------------- Total current assets 626,214,000 -------------- Property and equipment, net 120,775,000 Intangible assets, net 135,608,000 Other assets 24,355,000 -------------- Total assets $906,952,000 ============== LIABILITIES AND STOCKHOLDERS' DEFICIT Liabilities not subject to compromise: Current liabilities: Accounts payable and accrued liabilities $201,602,000 Current portion of long-term debt 48,000,000 Liabilities of discontinued operations 78,326,000 -------------- Total current liabilities 327,928,000 -------------- Deferred lease obligation 12,253,000 Liabilities subject to compromise 1,397,203,000 Total liabilities 1,737,384,000 -------------- Stockholders' deficit: Class A non-voting common stock, $1.00 par value; authorized 16,000,000 shares; 14,945,144 shares issued and outstanding 14,945,000 Class B voting common stock, $1.00 par value; authorized 121,500,000 shares; 117,009,869 shares issued & outstanding 117,010,000 Additional paid-in capital 329,489,000 Accumulated other comprehensive loss (27,672,000) Accumulated deficit (1,264,204,000) -------------- Total stockholders' deficit (830,432,000) -------------- Total liabilities & stockholders' deficit $906,952,000 ============== Spiegel, Inc., and Subsidiaries Debtors-in-Possession Unaudited Consolidated Statement of Operations Five Weeks Ended January 1, 2005 Net sales and other revenues: Net sales $209,642,000 Other revenue 10,772,000 -------------- 220,414,000 Cost of sales and operating expenses: Cost of sales, including buying and occupancy expenses 103,410,000 Selling, general & administrative expenses 50,733,000 -------------- 154,143,000 Estimated income of non-debtors 35,854,000 Operating Income 102,125,000 Interest expense 981,000 -------------- Income from operations before reorganization 101,144,000 items -------------- Reorganization items, net (7,147,000) Income Tax (18,959,000) -------------- Income from operations 127,250,000 -------------- Discontinued operations: Income from discontinued operations 17,020,000 -------------- Net Income $144,270,000 ============== Spiegel, Inc., and Subsidiaries Debtors-in-Possession Unaudited Consolidated Statement of Cash Flows Five Weeks Ended January 1, 2005 Cash flows from operating activities: Net Income $144,270,000 Adjustments to reconcile net loss to net cash used in operating activities: Reorganization items, net (7,147,000) Depreciation and amortization 4,345,000 Change in assets and liabilities: (Increase) decrease in receivables, net 2,156,000 (Increase) decrease in investments/advances (16,151,000) (Increase) decrease in inventories 49,509,000 (Increase) decrease in prepaid expenses 7,584,000 Increase (decrease) in accounts payable and other accrued liabilities 8,164,000 Increase (decrease) in net liabilities of discontinued operations (39,270,000) (Increase) decrease in income taxes (2,786,000) -------------- Net cash used for operating activities 150,674,000 -------------- Net cash used for reorganization items (702,000) Cash flows from investing activities: Net (additions) reductions to property and equipment (1,533,000) Net (additions) reductions to other assets (1,643,000 -------------- Net cash used in investing activities (3,176,000) -------------- Net cash provided by financing activities - -------------- Effect of exchange rate changes on cash (4,177,000) -------------- Net change in cash and cash equivalents 142,619,000 Cash & cash equivalents, beginning of period 205,859,000 -------------- Cash & cash equivalents, end of period $348,478,000 ============== Headquartered in Downers Grove, Illinois, Spiegel, Inc. -- http://www.spiegel.com/ -- is a leading international general merchandise and specialty retailer that offers apparel, home furnishings and other merchandise through catalogs, e-commerce sites and approximately 560 retail stores. The Company filed for Chapter 11 protection on March 17, 2003 (Bankr. S.D.N.Y. Case No. 03-11540). James L. Garrity, Jr., Esq., and Marc B. Hankin, Esq., at Shearman & Sterling, represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $1,737,474,862 in assets and $1,706,761,176 in debts. UAL CORP: Posts $326 Million Net Loss for January 2005 ------------------------------------------------------ UAL Corporation (OTCBB: UALAQ.OB), the holding company whose primary subsidiary is United Airlines, Thursday filed its January Monthly Operating Report with the U.S. Bankruptcy Court. The company reported an operating loss of $151 million for January 2005. Mainline passenger unit revenue in January increased 3% over the same period a year ago, outperforming the industry. Unit costs (CASM) in January increased 1% over the same month last year on flat capacity. Excluding fuel, unit costs in January decreased 6% year-over-year. The company reported a net loss of $326 million, including $138 million of reorganization expenses. "While we made progress in our restructuring during the month by getting in place a portion of the long-term cost savings we need, we still have work to do, including further lowering our costs, concluding our labor negotiations, and the difficult but necessary work of resolving our pension issues," said Jake Brace, executive vice president and chief financial officer. January is historically a seasonally weak month, and this year has been additionally impacted by the weak domestic revenue environment and very high fuel prices. Fuel expense for the month was $63 million higher than January 2004 on flat capacity. UAL ended January with a cash balance of $2.0 billion, which included $855 million in restricted cash (filing entities only). The cash balance decreased approximately $108 million during the month of January, driven by a quarterly Success Sharing reward to employees of $22 million and seasonally weak cash flow. The company received a waiver from its DIP lenders for the January monthly EBITDAR covenant, as well as an extension of the maturity date of its DIP loan from June 30, 2005, through September 30, 2005, a reduction in the interest rates United must pay under the loan, and a potential reduction in the minimum cash balance requirement from $750 million to $600 million if United meets a certain EBITDAR milestone. A full-text copy of UAL Corporation's January 2005 Operating Report is available for free at the Securities and Exchange Commission at: http://www.sec.gov/Archives/edgar/data/100517/000010051705000002/janmor.htm UAL Corporation and Subsidiary Companies Condensed Consolidating Statement of Operations For The Month Ended January 31, 2005 (In Thousands) Total operating revenues $1,387,883 Total operating expenses 1,538,821 Earnings (loss) from operations (150,968) Non-operating income (expenses): Net interest expense (35,152) Other income (expenses), net (2,430) ---------- Total non-operating income (expenses) (37,582) Net Earnings (loss) before Reorganization items (188,550) Reorganization items (137,601) ---------- Net earnings (loss) ($326,151) ========== 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. 77; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: Posts $42 Million Net Loss in December 2004 -------------------------------------------------------------- WESTPOINT STEVENS, INC. Balance Sheet At December 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents $4,008 Short-term investments - Accounts receivable, net 202,286 Inventories 289,515 Prepaid expenses and other current assets 21,234 --------- Total current assets 517,043 Total investments and other assets 118,834 Goodwill - Property, Plant and Equipment, net 504,158 --------- TOTAL ASSETS $1,140,035 ========= Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise: Senior Credit Facility $438,208 DIP Credit Agreement 58,149 Second lien facility 165,000 Accrued interest payable 507 Accounts payable - trade 48,825 Accounts payable - intercompany 183,553 Other accrued liabilities 120,345 Deferred income taxes 5,190 Pension and other liabilities 144,739 --------- Total liabilities not subject to compromise 1,164,516 Liabilities Subject to Compromise Senior notes 1,000,000 Deferred financing fees (4,647) Accrued interest payable on Senior Notes 36,313 Accounts payable 27,554 Other payables and accrued liabilities 8,233 Pension and other liabilities 18,923 --------- Total liabilities not subject to compromise 1,086,376 --------- Total Liabilities 2,250,892 Shareholders' Equity (Deficit) Equity of subsidiaries (123,757) Common stock 711 Capital surplus/Treasury Stock 51,436 Retained earnings (deficit) (925,772) Minimum pension liability adjustment (109,403) Other adjustments (4,072) Unearned compensation - --------- Stockholders' Equity (Deficit) (1,110,857) --------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $1,140,035 ========= WESTPOINT STEVENS, INC. Statement of Operations Month Ended December 31, 2004 (in thousands) Total sales $134,650 Cost of sales 117,167 --------- Gross profit 17,483 Selling and administrative expenses Selling expenses (1,459) Warehousing and shipping 5,024 Advertising 42 Division administrative expense 475 MIS expense (344) Corporate administrative expense 1,621 --------- Total selling and administrative expense 5,359 Restructuring and impairment charge 33,859 Fixed asset impairment charge - Goodwill impairment charge - --------- Profit (loss) from operations (21,735) Interest expense Interest expense - outside 7,910 Capitalized interest expense (476) Interest expense - intercompany 503 Interest income 25 Interest income - intercompany - --------- Net interest expense 7,912 Other expense Miscellaneous 2,359 Royalties - intercompany 3,700 Transaction gain/loss - --------- Total other expense 6,059 Other income Royalties - intercompany - Dividends - Sale of assets (221) Miscellaneous 4 --------- Total other income (217) --------- Net other expense 6,276 --------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items (35,923) Chapter 11 reorganization expenses 7,835 Income tax expense (benefit) (1,610) Extraordinary item - net of taxes - --------- Net Income (loss) ($42,148) ========= WESTPOINT STEVENS, INC. Statement of Cash Flows Month Ended December 31, 2004 (in thousands) Cash flows from operations: Net income (loss) ($42,148) Restructuring - Equity adjustments (1,865) Non-cash items Depreciation and amortization expense 8,949 Fixed asset impairment charge - Gain/(loss) on sale of assets 221 Working Capital Changes Decrease/(increase) - accounts receivable 14,045 Decrease/(increase) - inventories 33,658 Decrease/(increase) - other current assets (8,643) Decrease/(increase) - other non-current assets & debts 987 Increase/(decrease) - accounts payable (trade) 1,085 Increase/(decrease) - a/p (intercompany) (7,332) Increase/(decrease) - accrued liabilities 22,524 Increase/(decrease) - accrued interest payable (5,901) Increase/(decrease) - pension and other liabilities 5,903 Increase/(decrease) - deferred federal income tax 5,190 --------- Total cash flows from operations 26,673 Cash flows from investing activities: Decrease/(increase) - short-term investments - Capital expenditures (1,797) Transfers 16 Net proceeds from sale of assets 10 --------- Total cash flows from investing (1,771) Cash flows from financing activities: Increase/(decrease)- DIP Credit Agreement (22,000) --------- Total cash flows from financing (22,000) Beginning cash balance 1,106 Change in cash 2,902 --------- Ending cash balance $4,008 ========= Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/ -- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. WESTPOINT STEVENS: WP Stevens I Posts $4MM Net Income in December ----------------------------------------------------------------- WESTPOINT STEVENS, INC., I Balance Sheet At December 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents $37 Short-term investments - Accounts receivable - intercompany 28,992 Accounts receivable - customers - Total Inventories 3,676 Prepaid expenses and other current assets - --------- Total current assets 32,705 Total investments and other assets 124,052 Property, Plant and Equipment, net 12,093 Goodwill - --------- TOTAL ASSETS $168,850 ========= Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Senior Credit Facility - DIP Credit Agreement - Long-term debt classified as current - Accrued interest payable - Accounts payable - trade $2,197 Accounts payable - intercompany - Other accrued liabilities 5,111 Deferred income taxes - Pension and other liabilities - --------- Total Liabilities Not Subject to Compromise 7,308 Liabilities Subject to Compromise Senior notes - Deferred financing fees - Accrued interest payable on Senior Notes - Accounts payable - Other payables and accrued liabilities - Pension and other liabilities - --------- Total Liabilities Subject to Compromise - --------- Total Liabilities 7,308 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 1 Capital surplus/Treasury Stock 70,559 Retained earnings (deficit) 90,982 Minimum pension liability adjustment - Other adjustments - Unearned compensation - --------- Shareholders' Equity (Deficit) 161,542 --------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $168,850 ========= WESTPOINT STEVENS, INC., I Statement of Operations Month Ended December 31, 2004 (in thousands) Net sales $7,476 Cost of goods sold 4,996 --------- Gross earnings 2,480 Selling and administrative expenses Selling expenses 2 Warehousing and shipping 67 Advertising - Division administrative expense - MIS expense - Corporate administrative expense 170 --------- Total selling and administrative expense 239 Restructuring and impairment charge - Goodwill impairment charge - --------- Operating earnings (loss) 2,241 Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany - Interest income - Interest income - intercompany 567 --------- Net interest expense (567) Other expense Miscellaneous - Royalties - intercompany 190 Transaction gain/loss - --------- Total other expense 190 Other income Royalties - intercompany 3,811 Dividends - Sale of assets - Miscellaneous - --------- Total other income 3,811 --------- Net other expense (3,621) --------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items 6,429 Chapter 11 reorganization expenses - Income tax expense (benefit) 2,253 Extraordinary item - net of taxes - --------- Net Income (loss) $4,176 ========= WESTPOINT STEVENS, INC., I Statement of Cash Flows Month Ended December 31, 2004 (in thousands) Cash flows from operations: Net income (loss) $4,176 Non-cash items Depreciation and amortization 65 Working Capital Changes Decrease/(increase) - a/r (customers) - Decrease/(increase) - a/r (intercompany) 6,128 Decrease/(increase) - inventories 2,252 Decrease/(increase) - other current assets - Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) (223) Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities (12,686) Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - --------- Total cash flows from operations (288) Cash flows from investing activities: Decrease/(increase) short term investments - Capital expenditures 2 Transfers (16) Net proceeds from sale of assets - --------- Total cash flows from investing (14) Cash flows from financing activities: Increase/(decrease)- DIP Credit Agreement - --------- Total cash flows from financing - Beginning cash balance 339 Change in cash (302) --------- Ending cash balance $37 ========= Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/ -- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. WESTPOINT STEVENS: JP Stevens & Co.'s December Operating Report --------------------------------------------------------------- J.P. STEVENS & CO., INC. Balance Sheet At December 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents - Short-term investments - Accounts receivable - customers - Accounts receivable - intercompany $110,749 Prepaid expenses and other current assets - --------- Total current assets 110,749 Total investments & other assets 2,697 Goodwill - --------- TOTAL ASSETS $113,446 ========= Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Accounts payable - intercompany - Other accrued liabilities - Deferred income taxes - Pension and other liabilities - --------- Total Liabilities Not Subject to Compromise - Liabilities Subject to Compromise - Shareholders' Equity (Deficit) Equity of subsidiaries $10,503 Common stock - Capital surplus/Treasury Stock - Retained earnings (deficit) 102,943 Minimum pension liability adjustment - Other adjustments - Unearned compensation - --------- Stockholders' Equity (Deficit) 113,446 --------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $113,446 ========= J.P. Stevens & Co., Inc., reports no income and cash flow for December 2004. Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/ -- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. WESTPOINT STEVENS: JP Stevens Enterprises' Dec. Operating Report ---------------------------------------------------------------- J.P. STEVENS ENTERPRISES, INC. Balance Sheet At December 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents $12 Short-term investments - Accounts receivable - customers, net - Accounts receivable - intercompany 17,125 Prepaid expenses and other current assets - --------- Total current assets 17,137 Total investments & other assets - Goodwill - --------- TOTAL ASSETS $17,137 ========= Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise: Accounts payable - intercompany - Other accrued liabilities $191 Deferred income taxes - Pension and other liabilities - --------- Total Liabilities Not Subject to Compromise 191 Liabilities Subject to Compromise - --------- Total Liabilities 191 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 2 Capital surplus/Treasury Stock - Retained earnings (deficit) 16,944 Minimum pension liability adjustment - Other adjustments - Unearned compensation - --------- Stockholders' Equity (Deficit) 16,946 --------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $17,137 ========= J.P. STEVENS ENTERPRISES, INC. Statement of Operations Month Ended December 31, 2004 (in thousands) Net sales - Cost of goods sold - --------- Gross earnings - Selling and administrative expenses Selling expenses $1 Warehousing and shipping - Advertising - Division administrative expense - MIS expense - Corporate administrative expense - --------- Total selling and administrative expense 1 Restructuring and impairment charge - Goodwill impairment charge - --------- Operating earnings (loss) (1) Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany - Interest income - Interest income - intercompany 92 --------- Net interest expense (92) Other expense Miscellaneous - Royalties - intercompany - Transaction gain/loss - --------- Total other expense - Other income Royalties - intercompany 190 Dividends - Sale of assets - Miscellaneous - --------- Total other income 190 --------- Net other expense (190) --------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items 281 Chapter 11 reorganization expenses - Income tax expense (benefit) 99 Extraordinary item - net of taxes - --------- Net Income (loss) $182 ========= J.P. STEVENS ENTERPRISES, INC. Statement of Cash Flows Month Ended December 31, 2004 (in thousands) Cash flows from operations: Net income (loss) $182 Non-cash items Depreciation and amortization - Working Capital Changes Decrease/(increase) - a/r (intercompany) (8) Decrease/(increase) - inventories - Decrease/(increase) - other current assets - Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) - Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities (179) Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - --------- Total cash flows from operations (5) Cash flows from investing activities Capital expenditures - Net proceeds from sale of assets - --------- Total cash flows from investing - Cash flows from financing activities Increase/(decrease)- DIP Credit Agreement - --------- Total cash flows from financing - Beginning cash balance 17 Change in cash (5) --------- Ending cash balance $12 ========= Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/ -- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. WESTPOINT STEVENS: WP Stevens Stores' December Operating Report --------------------------------------------------------------- WESTPOINT STEVENS STORES, INC. Balance Sheet At December 31, 2004 (in thousands) Assets Current Assets Cash and cash equivalents $1,284 Short-term investments - Accounts receivable - customers 41 Accounts receivable - intercompany 4,960 Total Inventories 17,904 Prepaid expenses and other current assets 923 --------- Total current assets 25,112 Total investments & other assets - Goodwill - Property, plant and equipment, net 2,319 --------- TOTAL ASSETS $27,431 ========= Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Accounts payable - trade $635 Accounts payable -intercompany - Other accrued liabilities 1,249 Deferred income taxes - Pension and other liabilities - --------- Total Liabilities Not Subject to Compromise 1,884 --------- Liabilities Subject to Compromise Accounts payable 1,677 --------- Total Liabilities 3,561 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 1 Capital surplus/Treasury Stock 15,955 Retained earnings (deficit) 7,914 Minimum pension liability adjustment - Other adjustments - Unearned compensation - --------- Stockholders' Equity (Deficit) 23,870 --------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $27,431 ========= WESTPOINT STEVENS STORES, INC. Statement of Operations Month Ended December 31, 2004 (in thousands) Net sales $9,071 Cost of goods sold 5,350 --------- Gross earnings 3,721 Selling and administrative expenses Selling expenses 2,083 Warehousing and shipping 143 Advertising 323 Division administrative expense 227 MIS expense 29 Corporate administrative expense 142 --------- Total selling and administrative expense 2,947 Restructuring and impairment charge - Goodwill impairment charge - --------- Operating earnings (loss) 774 Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany 187 Interest income - Interest income - intercompany - --------- Net interest expense 187 Other expense Miscellaneous - Royalties - intercompany - Transaction gain/loss - --------- Total other expense - Other income Royalties Intercompany - Dividends - Sale of assets - Miscellaneous - --------- Total other income - --------- Net other expense - --------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items 587 Chapter 11 reorganization expenses - Income tax expense (benefit) 210 Extraordinary item - net of taxes - --------- Net Income (loss) $377 ========= WESTPOINT STEVENS STORES, INC. Statement of Cash Flows Month Ended December 31, 2004 (in thousands) Cash flows from operations: Net income (loss) $377 Non-cash items Depreciation and amortization 8 Gain on sale of assets - Working Capital Changes Decrease/(increase) - a/r (customers) 178 Decrease/(increase) - a/r (intercompany) 1,658 Decrease/(increase) - inventories 2,081 Decrease/(increase) - other current assets (4) Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) 94 Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities (5,453) Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - --------- Total cash flows from operations (1,061) Cash flows from investing activities Capital expenditures (103) Transfers - Net proceeds from sale of assets - --------- Total cash flows from investing (103) Cash flows from financing activities Increase/(decrease)- DIP Credit Agreement - --------- Total cash flows from financing - Beginning cash balance 2,448 Change in cash (1,164) --------- Ending cash balance $1,284 ========= Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/ -- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. YUKOS OIL: Posts $16.5 Billion Net Loss in December 2004 -------------------------------------------------------- Yukos Oil Company Balance Sheet As of December 31, 2004 Assets Non-current assets Intangible assets $286,079 Fixed assets 256,526,153 Long-term financial investments 7,978,613,411 Deferred tax assets 68,618,948 Other non-current assets - --------------- Total non-current assets 8,306,744,591 Current Assets Cash 84,119,054 Cash in the United States 26,986,223 Inventory 14,387,870 Prepaid expenses 42,576,738 VAT taxes 41,283,549 Accounts receivable 2,377,809,977 Short term financial investments 306,074,370 --------------- Total Current Assets 2,893,237,782 --------------- TOTAL ASSETS $11,199,982,373 =============== Liabilities & Owner's Equity Liabilities Prepetition payables Bank Debt $1,325,787,069 Non-affiliated companies 945,694,420 Affiliated companies 10,635,031,761 Previously affiliated companies 2,359,738,173 --------------- Total prepetition debt 15,266,251,422 Postpetition debt Bank Debt - Non-affiliated companies 73,594,823 Affiliated companies - Previously affiliated companies - --------------- Total prepetition debt 73,594,823 Other 102,877,079 Taxes 18,383,813,054 --------------- TOTAL LIABILITIES $33,826,536,379 Owner's Equity Charter capital $387,672 Treasury stocks (1,579,255) Additional Paid-in Capital 19,794,768 Legal reserves 58,140 Retained earnings (22,645,215,331) --------------- TOTAL OWNER'S EQUITY (22,626,554,006) --------------- TOTAL LIABILITIES & OWNER'S EQUITY $11,199,982,373 =============== Yukos Oil Company Income Statement Period Ended December 31, 2004 Revenue $43,223,081 Cost of goods sold 11,969,609 Gross profit 31,253,472 Commercial expenses 861,586 Administrative expenses 18,308,959 Operating income 12,082,927 Other income (expenses) (4,671,924,685) Income before taxes (4,659,841,757) Taxes (11,869,219,284) --------------- NET INCOME ($16,529,061,041) =============== Yukos Oil Company Cash Receipts and Disbursements Period Ended December 31, 2004 Cash -- Beginning of the Month $15,760,225 Receipts Cash Sales - Collection of Accounts Receivable - Other $267,253,769 --------------- Total Receipts 267,253,769 Disbursements Sales, use & other taxes paid 165,825,900 Other 766,607 --------------- Total Disbursements 166,592,507 Net Cash Flow 100,661,262 --------------- Cash -- End of the Month $116,421,487 =============== Headquartered in Houston, Texas, Yukos Oil Company -- http://www.yukos.com/ -- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in the energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742). Zack A. Clement, Esq., C. Mark Baker, Esq., Evelyn H. Biery, Esq., John A. Barrett, Esq., Johnathan C. Bolton, Esq., R. Andrew Black, Esq., Fulbright & Jaworski, LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $12,276,000,000 in total assets and $30,790,000,000 in total debts. On Feb. 24, 2005, U.S. Bankruptcy Judge Leticia Clark dismissed the case on the grounds that there is doubt on Yukos' ability to effectuate a reorganization. Deutsche Bank has asked Judge Clark to reconsider her ruling. YUKOS OIL: Files Monthly Operating Report for January 2005 ---------------------------------------------------------- Yukos Oil Company closes its books quarterly. Yukos has reached an agreement with the U.S. Trustee to provide full data on company income and balance sheet on a quarterly basis. Cash receipts and disbursements will be provided on a monthly basis. Yukos Oil Company Balance Sheet As of January 31, 2005 Assets Non-current assets Intangible assets - Fixed assets - Long-term financial investments - Deferred tax assets - Other non-current assets - --------------- Total non-current assets - Current Assets Cash $72,974,077 Cash in the United States 27,008,043 Inventory - Prepaid expenses - VAT taxes - Accounts receivable - Short term financial investments - --------------- Total Current Assets - --------------- TOTAL ASSETS - =============== Liabilities & Owner's Equity Liabilities Prepetition payables Bank Debt - Non-affiliated companies - Affiliated companies - Previously affiliated companies - --------------- Total prepetition debt - Postpetition debt Bank Debt - Non-affiliated companies - Affiliated companies - Previously affiliated companies - --------------- Total prepetition debt - Other - Taxes - --------------- TOTAL LIABILITIES - Owner's Equity Charter capital - Treasury stocks - Additional Paid-in Capital - Legal reserves - Retained earnings - --------------- TOTAL OWNER'S EQUITY - --------------- TOTAL LIABILITIES & OWNER'S EQUITY - =============== Yukos Oil Company Income Statement Period Ended January 31, 2005 Revenue $170,471,492 Cost of goods sold - Gross profit - Commercial expenses - Administrative expenses - Operating income - Other income (expenses) - Income before taxes - Taxes - --------------- NET INCOME - =============== Yukos Oil Company Cash Receipts and Disbursements Period Ended January 31, 2005 Cash -- Beginning of the Month $116,421,487 Receipts Cash Sales - Collection of Accounts Receivable - Other 170,471,492 --------------- Total Receipts 170,471,492 Disbursements Sales, use & other taxes paid 186,595,092 Other 337,497 --------------- Total Disbursements 186,932,589 Net Cash Flow (16,461,097) --------------- Cash -- End of the Month $99,960,390 =============== Headquartered in Houston, Texas, Yukos Oil Company -- http://www.yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in the energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742). Zack A. Clement, Esq., C. Mark Baker, Esq., Evelyn H. Biery, Esq., John A. Barrett, Esq., Johnathan C. Bolton, Esq., R. Andrew Black, Esq., Fulbright & Jaworski, LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $12,276,000,000 in total assets and $30,790,000,000 in total debts. On Feb. 24, 2005, U.S. Bankruptcy Judge Leticia Clark dismissed the case on the grounds that there is doubt on Yukos' ability to effectuate a reorganization. Deutsche Bank has asked Judge Clark to reconsider her ruling. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L. Metzler, Emi Rose S.R. Parcon, Rizande B. Delos Santos, Jazel P. Laureno, Cherry Soriano-Baaclo, Marjorie Sabijon, Terence Patrick F. Casquejo and Peter A. Chapman, Editors. Copyright 2005. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $675 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***