/raid1/www/Hosts/bankrupt/TCR_Public/050312.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 12, 2005, Vol. 9, No. 60
Headlines
AIR CANADA: ACE Earns $15 Million of Net Income for December 2004
KAISER ALUMINUM: Earns $6.8 Million of Net Income in January 2005
LAIDLAW: Files November 2004 Monthly Operating Reports
THAXTON GROUP: Posts $30.8 Million Net Loss in January 2005
TRENWICK AMERICA: Earns $190,958 of Net Income in December 2004
TRENWICK AMERICA: Posts $387,503 Net Loss in January 2005
US AIRWAYS: Releases 4th Quarter & Year End 2004 Results
US AIRWAYS: Earns $720 Million of Net Income in January 2005
WESTPOINT STEVENS: Posts $21.6 Million Net Loss in January 2005
WESTPOINT STEVENS: WP Stevens I Posts $3MM Net Income in January
WESTPOINT STEVENS: JP Stevens & Co.'s January Operating Report
WESTPOINT STEVENS: JP Stevens Enterprises' Jan. Operating Report
WESTPOINT STEVENS: WP Stevens Stores' January Operating Report
WINSTAR COMMS: Releases January 2005 Monthly Operating Report
*********
AIR CANADA: ACE Earns $15 Million of Net Income for December 2004
-----------------------------------------------------------------
ACE Aviation Holdings Inc. reported an operating loss of
$3 million for the fourth quarter of 2004, an improvement of
$74 million from the operating loss before reorganization and
restructuring items of $77 million recorded in the fourth quarter
of 2003, despite a 49 per cent or $142 million increase in fuel
expense.
The improvement was largely due to an increase of $86 million or 5
per cent in transportation revenues as a result of higher traffic.
Passenger revenue per available seat mile (RASM), on a comparable
basis, is up 4 per cent reflecting an improvement of 4.7
percentage points in passenger load factor.
Domestic unit revenues were up 9 per cent, converting to 16.96
cents on a stage-length adjusted basis to that of the airline's
main domestic competitor, believed to be a premium of
approximately 50 per cent. Operating expenses increased only
$11 million in spite of the fuel expense increase of $142 million
which offset the continued cost reductions that the Corporation
has achieved.
Excluding fuel expense, unit cost is down 5 per cent from the
fourth quarter of 2003 and down 19 per cent compared to the
fourth quarter of 2002. Including fuel expense, unit cost is up
3 per cent over the fourth quarter of 2003. Employee
productivity, as measured by available seat mile per employee,
grew 16 per cent when compared to the fourth quarter of 2002.
Foreign exchange gains on long term monetary items of $98
million were recorded in the quarter. Net income for the quarter
was $15 million, an improvement of $223 million from the fourth
quarter of 2003, excluding reorganization and restructuring items
of $560 million in the 2003 quarter.
"Given the current difficult operating environment, featuring low
North American yields and record high fuel prices, I am satisfied
with these financial results, "said Robert Milton, President, CEO
and Chairman of ACE Aviation Holdings Inc. "Furthermore, despite
record fuel prices significantly above those projected in the
Circular and Proxy Statement dated July 12, 2004 (the Circular),
we are right on track and have exceeded our $1.1 billion EBITDAR
forecast for 2004.
"In particular, it is encouraging to note that our operating
margin is better than that achieved by any of our major North
American competitors. We generated solid traffic growth and
achieved record load factors again throughout the quarter. Our
domestic performance was particularly strong throughout 2004. We
achieved solid year-over-year domestic traffic growth despite our
reduction in capacity and the significant growth in capacity
deployed by our competitors. This clearly demonstrates that Air
Canada is the airline of choice of Canadians for the lowest fares
to the greatest number of destinations every day."
Earnings before interest, taxes, depreciation, amortization
and aircraft rent (EBITDAR), before reorganization and
restructuring items, amounted to $1.146 billion for the full year
ended December 31, 2004 and exceeded the Corporation's projected
2004 EBITDAR of $1.1 billion described in ACE's business plan as
outlined in the Circular. This was achieved despite $79 million
in additional fuel costs.
The Corporation continues to expect improved operating and
financial performance during 2005 resulting from revenue
enhancement and cost reduction measures implemented during the
restructuring and from additional measures in the fourth quarter
of 2004 and the full year 2005.
The Circular provided an EBITDAR projection of $1.6 billion for
2005, which was based on an assumed average 2005 crude oil price
of approximately US $35 dollars per barrel for West Texas
Intermediate (WTI) crude oil.
While crude oil prices are now estimated to be significantly
higher than this level, the Corporation remains committed to
achieving its $1.6 billion EBITDAR target for 2005 as greater
revenues and additional cost savings in specific areas are
forecast to offset higher projected fuel expenses based on
internal estimates.
Crude oil and fuel prices are currently at record high levels and
exceed internal estimates. As fuel prices are subject to many
external factors beyond the Corporation's control, the Corporation
may not be able to fully mitigate the potential adverse effect
that this or other factors could have on the 2005 EBITDAR
projection.
"Looking forward, we're moving ahead with the implementation
of our plan to realign our network and fleet as Air Canada Jazz
takes delivery of the first 15 Bombardier CRJ-705 aircraft
commencing in May 2005. The addition of these jet aircraft to
the Air Canada Jazz fleet will allow us to boost regional jet
service to communities across Canada thus offering superior
comfort, choice in non-stop markets served and more frequencies.
Air Canada's fleet will expand by six additional wide bodies to
accommodate international growth this summer and 17 of the 60
state-of-the-art Embraer aircraft on order will be introduced to
the mainline fleet in the last two quarters of the year," said
Mr. Milton.
Air Canada will begin taking delivery of 15 Embraer 175 aircraft
in July 2005. The Embraer 175 will be configured in two
classes of service with nine seats in Executive Class with three
abreast seating offering 39 inches of legroom, and 64 seats in
Hospitality with four abreast seating offering 32 inches of
legroom. In November 2005, Air Canada will begin taking delivery
of 45 Embraer 190 aircraft configured in two classes of service
with 9 seats in Executive Class with three abreast seating
offering 38 inches of legroom, and 84 seats in Hospitality with
four abreast seating offering 33 inches of legroom and featuring
spacious overhead bins. The new Embraer aircraft will be
deployed throughout Air Canada's North America network.
In 2004, Air Canada continued the expansion of its Latin
America network with the launch of new non-stop services to
Bogota, Caracas, Lima and increased services to Buenos Aires and
Sao Paulo. In August, Air Canada launched the first-ever non-
stop service between Toronto and Hong Kong operated using its new
Airbus A340-500, the world's longest range airliner, featuring
lay flat seats in Executive First and personal television
monitors with video on demand for Hospitality customers. The
carrier also enhanced its Asia-Pacific service with the
introduction of new Sydney-Vancouver non-stop flights. In 2005,
Air Canada will continue to expand its Asia network with the
introduction of new non-stop services to Beijing and Seoul from
its main hub at Toronto's Pearson airport offering convenient
connections throughout its global network.
As part of its international growth plans, Air Canada is
reinvesting in its in-flight product through an extensive
aircraft interior refurbishment program featuring a new lie-flat
seat for international Executive First and new seatback personal
video systems for all aircraft larger than the 50-seat regional
jets. Air Canada will thus become the first airline in the
Americas to offer fully interactive, personalized entertainment
choices on all its mainline aircraft. The introduction of a
single in-flight entertainment system fleet wide will replace
multiple systems currently in use and provide customers and
employees with added benefits of ease of use as well as
streamlining training and maintenance.
Throughout 2004, Air Canada continued the implementation of
web-based technology solutions to simplify travel and put more
control in the hands of its customers through automation. After
becoming the first North American full service carrier in May
2003 to simplify its domestic fare structure, Air Canada expanded
its popular simplified online fares throughout its U.S. network
in February 2004. The carrier continued to lead traditional
carriers in fare simplification with the elimination of return
fare and minimum stay requirements in North America, and made on-
going enhancements to its Web site booking engine. In addition,
it led the industry with the introduction of a series of self-
service online multi-trip air passes, and became the first
Canadian carrier to offer web-check-in.
Frank McKenna Resigns From Board
The Corporation also announced that Frank J. McKenna, the former
Premier of New Brunswick has resigned from the ACE board
effective March 1, 2005 as a result of his appointment as
Canadian Ambassador to the United States.
Financial Statements Will Be Filed Later
In addition, the Corporation announced that the Audited
Consolidated Statements of Operations and Retained
Earnings (Deficit) and Cash Flow of ACE for the year ended
December 31, 2004, and the Audited Consolidated Statement of
Financial Position of ACE as at December 31, 2004 will be made
available on ACE's and Air Canada's Web site
http://www.aircanada.com/and at http://www.SEDAR.com/in the
following days. A copy may also be obtained on request by
contacting Shareholder Relations at (514) 205-7856.
The Annual Statements cover Air Canada's operations and cash flows
for the nine months ended September 30, 2004 as well as those of
ACE for the period ended December 31, 2004 and set out ACE's
financial position as at December 31, 2004.
The financial information in the Annual Statements has previously
been disclosed with the exception of the fourth quarter results of
ACE announced and certain adjustments related to the fair value of
the assets and liabilities of ACE as at September 30, 2004 under
fresh start reporting.
On September 30, 2004, ACE became the successor and parent
holding company of the reorganized Air Canada and its
subsidiaries. As a result, the consolidated statement of
financial position as at September 30, 2004 is that of ACE and is
presented on a fresh start reporting basis.
All assets and liabilities of ACE are reported at fair values,
except for future income taxes which are reported in accordance
with the requirements of Section 3465 of the CICA Handbook. The
fair values of the assets and liabilities of ACE were based on
management's best estimates as at September 30, 2004.
The determination of the fair values of the assets and liabilities
of ACE had not been finalized as at the date of preparing the
interim consolidated balance sheet previously filed.
Management's final valuations will be reflected in the Annual
Statements. There are no changes to the reported earnings or
cash flows of the Corporation for the periods ended September 30,
2004 as previously filed.
ACE Aviation Holdings Inc.
Unaudited Consolidated Statement of Operations
Three Months Ended December 31, 2004
(In Millions)
Operating revenues
Passenger CN$1,681
Cargo 151
Other 230
--------
2,062
--------
Operating expenses
Salaries, wages and benefits 596
Aircraft fuel 432
Aircraft rent 111
Airport and navigation fees 198
Aircraft maintenance, materials and supplies 78
Communications and information technology 66
Food, beverages and supplies 76
Depreciation, amortization and obsolescence 85
Commissions 65
Other 358
--------
2,065
--------
Operating income (loss) before reorganization
and restructuring items (3)
Reorganization and restructuring items -
Non-operating income (expense)
Interest income 11
Interest expense (60)
Interest capitalized 2
Loss on sale of and provisions on assets -
Other (20)
--------
(67)
--------
Loss before foreign exchange on non-compromised
long-term monetary items and income taxes (70)
Foreign exchange gain (loss) 98
--------
Income (loss) before income taxes 28
Recovery of (provision for) income taxes (13)
--------
Income (loss) $15
========
ACE Aviation Holdings Inc.
Highlights
(In millions except per share figures)
3 Months Ended December 31
--------------------------
Financial 2004 2003
-------- --------
Operating revenues CN$2,062 1,977
Operating loss before reorg
and restructuring items (3) (77)
Reorg & restructuring items - (560)
Non-operating expense (67) (132)
Loss before foreign exchange on
non-compromised long-term
monetary items and income taxes (70) (769)
Income (loss) for the period 15 (768)
Operating margin before reorg and
restructuring items (0.1)% (3.9)%
EBITDAR before reorganization and
restructuring items 193 227
EBITDAR margin before reorg and
restructuring items 9.4% 11.5%
Weighted average common shares used
for computation - basic & diluted 90 120
Earnings (loss) per share - basic
and diluted $0.17 ($6.39)
======== ========
Operating Statistics
(mainline-related) % Change
--------
Revenue passenger miles (mln)(RPM) 9,252 8,878 4
Available seat miles (mln) (ASM) 12,189 12,409 (2)
Passenger load factor 75.9% 71.5% 4.4 pts
Passenger revenue yield per RPM
(excluding Aeroplan) (cents) 15.6 15.8 (2)
Passenger revenue yield per RPM
(including Aeroplan) (cents) 16.0 15.8 1
Passenger revenue per ASM
(excluding Aeroplan) (cents) 11.8 11.3 4
Passenger revenue per ASM (including
Aeroplan) (cents) 12.1 11.3 7
Operating revenue per available seat
mile (cents) 14.9 13.9 7
Operating expense per available seat
mile (cents) 15.0 14.5 3
Operating expense (net of cargo and
other non-ASM revenue) per available
seat mile (cents) 12.2 11.9 2
Average number of employees (thousands) 28.2 29.2 (3)
Available seat miles per employee
(thousands) 432 425 2
Operating revenue per employee
(thousands) $64 $59 9
Aircraft in operating fleet
at period end 199 214 (7)
Average aircraft utilization
(hours per day) 10.6 10.4 1
Average aircraft flight length (miles) 1,284 1,212 6
Fuel price per litre (cents) 54.3 35.2 54
Fuel litres (millions) 738 754 (2)
======== ======== ========
Operating Statistics (Consolidated) % Change
--------
Revenue passenger miles (millions) 9,681 9,289 4
Available seat miles (millions) 12,815 13,115 (2)
Passenger load factor 75.5% 70.8% 4.7 pts
Passenger revenue yield per RPM
(excluding Aeroplan) (cents) 16.9 17.3 (3)
Passenger revenue yield per RPM
(including Aeroplan) (cents) 17.3 17.3 (0)
======== ======== ========
Air Canada filed for CCAA protection on April 1, 2003 (Ontario
Superior Court of Justice, Case No. 03-4932) and filed a Section
304 petition in the U.S. Bankruptcy Court for the Southern
District of New York (Case No. 03-11971). Mr. Justice Farley
sanctioned Air Canada's CCAA restructuring plan on Aug. 23, 2004.
Sean F. Dunphy, Esq., and Ashley John Taylor, Esq., at Stikeman
Elliott LLP, in Toronto, serve as Canadian Counsel to the carrier.
Matthew A. Feldman, Esq., and Elizabeth Crispino, Esq., at Willkie
Farr & Gallagher, serve as the Debtors' U.S. Counsel. When the
Debtors filed for protection from their creditors, they listed
C$7,816,000,000 in assets and C$9,704,000,000 in liabilities.
On September 30, 2004, Air Canada successfully completed its
restructuring process and implemented its Plan of Arrangement.
The airline exited from CCAA protection raising $1.1 billion of
new equity capital and, as of September 30, has approximately
$1.9 billion of cash on hand.
As previously reported, Standard & Poor's Ratings Services
assigned its 'B' long-term corporate credit rating to Montreal,
Quebec-based ACE Aviation Holdings Inc. and its wholly owned
subsidiary, Air Canada. The outlook is stable.
"The ratings on ACE reflect the carrier's higher cost structure
relative to its domestic competitors, the structural volatility in
passenger demand, the company's exposure to high fuel prices, and
the reliance on a new business plan to restore profitability,"
said Standard & Poor's credit analyst Kenton Freitag. "These
concerns are partially offset by good liquidity and its extensive,
well-positioned network," Mr. Freitag added.
KAISER ALUMINUM: Earns $6.8 Million of Net Income in January 2005
-----------------------------------------------------------------
Kaiser Aluminum Corporation -- All Debtors
Unaudited Balance Sheets
As of January 31, 2005
(In Thousands)
ASSETS
Cash $52,891
Receivables:
Trade 112,420
Other 15,247
---------
Total Receivables 127,667
Inventories 126,230
Prepaid expenses and other current assets 41,855
---------
Total current assets 348,643
Investments in and advances to subsidiaries 61,968
Intercompany receivables/payables, net (4,780)
Property, plant, and equipment - net 213,671
Deferred income taxes -
Other assets 768,172
---------
Total Assets $1,387,674
=========
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities not subject to compromise:
Accounts Payable $51,002
Accrued interest 964
Accrued salaries, wages and related expenses 35,626
Accrued post retirement benefit -- current -
Other accrued liabilities 97,303
Payable to affiliates 46,239
Long term debt - current portion 1,212
---------
Total current liabilities 232,346
Long-term liabilities 21,616
Accrued postretirement benefit obligation -
Long-term debt 2,212
Liabilities subject to compromise 2,863,429
Minority interests 655
Stockholders' equity:
Preference stock -
Common stock 789
Additional capital 538,009
Accumulated deficit - As of filing date (946,930)
Accumulated deficit - Post filing date (1,317,211)
Accumulated other comprehensive income (loss) (7,241)
Note receivable from parent -
---------
Total Liabilities & Stockholders' Equity $1,387,674
=========
Kaiser Aluminum Corporation -- All Debtors
Unaudited Statements of Operations
For the Month Ending January 31, 2005
(In Thousands)
Net Sales $108,081
Costs and expenses:
Cost of products sold 88,843
Depreciation & amortization 1,651
Selling, administrative, R&D and general 5,249
Other operating charges (benefits), net 14
---------
Total costs and expenses 95,757
---------
Operating income (loss) 12,324
Other income (expense):
Interest expenses, net (915)
Reorganization items (2,415)
Other-net (152)
---------
Income (loss) before
income taxes and minority interest 8,842
(Provision) benefit for income taxes (2,003)
Minority interests -
Equity in income (loss) of subsidiaries (52)
---------
Net income (loss) $6,787
=========
Kaiser Aluminum Corporation -- All Debtors
Schedule of Consolidated Cash Receipts and Disbursements
For the Month Ending January 31, 2005
(In Thousands)
Receipts:
Trade Receivables
KACC Receivables $77,753
KAII Receivables 37,108
---------
Total Trade Receivables 114,861
COBRA receipts 784
---------
Total Receipts 115,645
Disbursements:
Inventory/Raw Materials 49,644
Capital Expenditures 757
Maintenance, Materials, etc. 3,306
Freight 3,331
Utilities/Energy 5,595
Hourly Payroll 6,444
Salaried Payroll 3,698
VEBA Advances 1,900
Medical - Current and Former Employees 2,774
Annual Insurance Premiums 1,348
Workmen's Compensation 415
Credit Agreement Fees 250
Corporate General and Administrative 2,193
JV Fundings - Alumina 10,761
JV Fundings - Primary, Net of Minority Interest 12,342
Other Disbursements 10,348
---------
Total Operating and G&A Disbursements 115,106
Reorganization Items 2,356
---------
Total Disbursements 117,462
---------
Net Cash Flow (1,817)
Beginning Bank Cash Balances 55,623
---------
Ending Bank Cash Balances 53,806
Reconciling Items (915)
---------
Ending Book Cash Balances $52,891
=========
Headquartered in Houston, Texas, Kaiser Aluminum Corporation --
http://www.kaiseral.com/-- operates in all principal aspects of
the aluminum industry, including mining bauxite; refining bauxite
into alumina; production of primary aluminum from alumina; and
manufacturing fabricated and semi-fabricated aluminum products.
The Company filed for chapter 11 protection on February 12, 2002
(Bankr. Del. Case No. 02-10429). Corinne Ball, Esq., at Jones
Day, represents the Debtors in their restructuring efforts. On
June 30, 2004, the Debtors listed $1.619 billion in assets and
$3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 63;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
LAIDLAW: Files November 2004 Monthly Operating Reports
------------------------------------------------------
On Feb. 14, 2005, Laidlaw International, Inc., filed unaudited pro
forma financial statements, which give effect to the disposition
of EmCare Holdings, Inc., and American Response, Inc., to be
accounted for as a discontinued operation in accordance with FAS
144.
The unaudited pro forma Condensed Balance Sheet, Laidlaw's Senior
Vice President and Chief Financial Officer Douglas A. Carty says,
assumes the disposition of the Healthcare Businesses for the
three-month period ended November 30, 2004, and the fiscal year
ended August 31, 2004, as if the disposition occurred on
September 1, 2004, and September 1, 2003.
Laidlaw International, Inc.
Unaudited Pro-forma Condensed Balance Sheet
November 30, 2004
($ in Millions)
Historically Healthcare Pro forma Pro forma
Reported Businesses Adjustments Results
------------ ---------- ----------- ---------
ASSETS
Cash $99 - $166 $266
A/R 742 ($404) - 339
Other
Current Assets 259 (67) - 192
------ ------ ------ ------
TOTAL
CURRENT
ASSETS 1,101 (471) 166 796
Long term
Investments 637 (96) - 541
Property &
Equipment 1,606 (129) - 1,477
Other assets 640 (175) (18) 446
------ ------ ------ ------
TOTAL ASSETS $3,984 ($871) $148 $3,261
====== ====== ====== ======
LIABILITIES & SHAREHOLDER'S EQUITY
Current Debt $664 ($188) (25) 452
Long term Debt 1,129 (7) (584) 539
Other long
term debt 742 (143) - 599
------ ------ ------ ------
TOTAL LIABILITIES 2,535 (337) (609) 1,589
Investment in
Healthcare
Businesses - (535) 535 -
Shareholders'
Equity 1,448 - 223 1,671
------ ------ ------ ------
TOTAL
LIABILITIES &
SHAREHOLDERS'
EQUITY $3,984 ($871) $148 $3,261
====== ====== ====== ======
Laidlaw International, Inc.
Unaudited Pro forma Condensed Consolidated
Statement of Operations
For Three Months ended November 30, 2004
(In Millions)
Historically Healthcare Pro forma Pro forma
Reported Businesses Adjustments Results
------------ ---------- ----------- ---------
REVENUE $1,227 ($414) - $814
Compensation
Expense 689 (285) - 404
Accident claims
& professional
liability expenses 80 (24) - 56
Vehicle costs 68 (5) - 63
Occupancy costs 49 (12) - 37
Fuel 57 (6) - 51
Depreciation &
Amortization 81 (13) - 68
Other operating
Expenses 124 (51) 3 75
------ ------ ------ ------
OPERATING INCOME 80 (18) (3) 59
Interest expense (30) 1 11 (19)
Other income
(expense), net 1 - - 1
------ ------ ------ ------
INCOME BEFORE
INCOME TAXES 51 (18) 8 41
Income tax expense (21) 7 (3) (16.4)
------ ------ ------ ------
INCOME FROM
CONTINUING
OPERATIONS $30 ($11) $5 $25
====== ====== ====== ======
Laidlaw International, Inc.
Unaudited Pro forma Condensed Consolidated
Statement of Operations
For the Year ended August 31, 2004
(In Millions)
Historically Healthcare Pro forma Pro forma
Reported Businesses Adjustments Results
------------ ---------- ----------- ---------
REVENUE $4,631 ($1,605) - $3,027
Compensation
Expense 2,678 (1,122) - 1,556
Accident claims
& professional
liability expenses 288 (82) - 206
Vehicle costs 279 (19) - 261
Occupancy costs 203 (46) - 158
Fuel 182 (19) - 163
Depreciation &
Amortization 284 (53) - 231
Other operating
Expenses 496 (194) 9 310
------ ------ ------ ------
OPERATING INCOME 221 (70) (9) 143
Interest expense (130) 5 46 (79)
Other income
(expense), net 2 0 - 2
------ ------ ------ ------
INCOME BEFORE
INCOME TAXES 94 (65) 38 66
Income tax expense (32) 25 (13) (20)
------ ------ ------ ------
INCOME FROM
CONTINUING
OPERATIONS $62 ($40) $25 $47
====== ====== ====== ======
Headquartered in Arlington, Texas, Laidlaw, Inc., now known as
Laidlaw International, Inc., -- http://www.laidlaw.com/-- is
North America's #1 bus operator. Laidlaw's school buses transport
more than 2 million students daily, and its Transit and Tour
Services division provides daily city transportation through more
than 200 contracts in the US and Canada. Laidlaw filed for
chapter 11 protection on June 28, 2001 (Bankr. W.D.N.Y. Case No.
01-14099). Garry M. Graber, Esq., at Hodgson Russ LLP, represents
the Debtors. Laidlaw International emerged from bankruptcy on
June 23, 2003.
* * *
As reported in the Troubled Company Reporter on Dec. 27, 2004,
Moody's Investors Service has placed the long-term debt ratings of
Laidlaw International, Inc., under review for possible upgrade.
The review is prompted by the recent announcement by the company
that it had entered into a definitive agreement to sell both of
its healthcare businesses to Onex Partners LP, an affiliate of
Onex Corporation, for $820 million. Net proceeds after fees and
assumption of a small amount of debt by the buyer is estimated at
$775 million, with a majority of the proceeds intended to be used
to repay substantial levels of Laidlaw's existing debt. Moody's
has also assigned a Speculative Grade Liquidity Rating of SGL-2 to
Laidlaw International, Inc. As part of the rating action, Moody's
has reassigned to Laidlaw International, Inc., certain ratings,
including the senior implied and senior unsecured issuer ratings,
originally assigned at Laidlaw, Inc., in order to reflect more
appropriately the company's current organizational structure.
As reported in the Troubled Company Reporter on Dec. 9, 2004,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB' corporate credit rating, on Laidlaw International, Inc.,
on CreditWatch with positive implications. The rating action
follows Laidlaw's announcement that it has entered into definitive
agreements to sell both of its health care companies, American
Medical Response and Emcare, to Onex Partners L.P. for
$820 million. Laidlaw expects to receive net cash proceeds of
$775 million upon closing of the transaction, which is expected by
the end of March 2005. Naperville, Illinois-based Laidlaw
currently has about $1.5 billion of lease-adjusted debt.
THAXTON GROUP: Posts $30.8 Million Net Loss in January 2005
-----------------------------------------------------------
On Mar. 1, 2005, The Thaxton Group filed its monthly operating
report for January 2005 with the U.S. Bankruptcy Court for the
District of Delaware.
The company reports a cumulative net loss of $30,760,064 on
$661,804 revenue for the period from Oct. 17, 2003 thru
Jan. 31, 2005.
At Jan. 31, 2005, the Company's balance sheet reflects:
Total Assets $157,620,893
Total Liabilities 185,375,718
Stockholders' Deficit ($27,754,825)
A full-text copy of Thaxton Group's January 2005 Monthly
Operating Report is available at no charge at:
http://sec.gov/Archives/edgar/data/1001430/000119312505044726/dex991.htm
Headquartered in Lancaster, South Carolina, The Thaxton Group,
Inc., is a diversified consumer financial services company. The
Company filed for Chapter 11 protection on October 17, 2003
(Bankr. Del. Case No. 03-13183). The Debtors are represented by
Michael G. Busenkell, Esq., and Robert J. Dehney, Esq., at Morris,
Nichols, Arsht & Tunnell.
TRENWICK AMERICA: Earns $190,958 of Net Income in December 2004
---------------------------------------------------------------
On Jan. 20, 2005, Trenwick America Corporation filed monthly
operating reports for the month ended Dec. 31, 2004, and the
period from Aug. 20, 2003, to Dec. 31, 2004, with the United
States Bankruptcy Court for the District of Delaware.
Trenwick posts a $190,958 net income in December 2004, and a
cumulative $59,915,014 loss for the period from Aug. 20, 2003, to
Dec. 31, 2004.
At Dec. 31, 2004, Trenwick America's balance sheet showed:
Total Current Assets $56,755,416
Total Assets 252,555,287
Total Prepetition Debts 288,528,651
Total Liabilities 292,907,093
Net Owner Equity Deficit ($40,351,807)
A full-text copy of Trenwick America's December 2004 Monthly
Operating Report is available at no charge at:
http://sec.gov/Archives/edgar/data/1127783/000116923205001578/d62076_ex99-1.
txt
Headquartered in Stamford, Connecticut, Trenwick America
Corporation is a holding company for operating insurance
companies in the United States. The Company filed for chapter
11 protection on August 20, 2003 (Bankr. Del. Case No. 03-12635).
Christopher S. Sontchi, Esq., and William Pierce Bowden, Esq., at
Ashby & Geddes, and Benjamin Hoch, Esq., Irena Goldstein, Esq.,
Carey D. Schreiber, Esq., at Dewey Ballantine LLP represent the
Debtors in their restructuring efforts. As of June 30, 2003, the
Debtor listed approximate assets of $400,000,000 and debts of
$293,000,000.
On August 20, 2003, Trenwick Group, Ltd., and LaSalle Re Holdings
Limited also filed insolvency proceedings in the Supreme Court of
Bermuda. On August 22, 2003, the Bermuda Court granted an order
appointing Michael Morrison and John Wardrop, partners of KPMG in
Bermuda and KPMG LLP in the United Kingdom, respectfully, as Joint
Provisional Liquidators in respect of TGL and LaSalle.
The Bermuda Court granted the JPLs the power to oversee the
continuation and reorganization of these companies' businesses
under the control of their boards of directors and under the
supervision of the U.S. Bankruptcy Court and the Bermuda Court.
TRENWICK AMERICA: Posts $387,503 Net Loss in January 2005
---------------------------------------------------------
On Feb. 24, 2005, Trenwick America Corporation filed monthly
operating reports for the month ended Jan. 31, 2005, and the
period from Aug. 20, 2003, to Jan. 31, 2005, with the United
States Bankruptcy Court for the District of Delaware.
Trenwick posts a $387,503 net loss in January 2005, and a
cumulative $60,302,516 loss for the period from Aug. 20, 2003, to
Jan. 31, 2005.
At Jan. 31, 2005, Trenwick America's balance sheet showed:
Total Current Assets $56,546,523
Total Assets 252,318,837
Total Prepetition Debts 288,386,386
Total Liabilities 293,008,007
Net Owner Equity Deficit ($40,689,170)
A full-text copy of Trenwick America's January 2005 Monthly
Operating Report is available at no charge at:
http://sec.gov/Archives/edgar/data/1127783/000116923205001579/d62878_ex99-1.
txt
Headquartered in Stamford, Connecticut, Trenwick America
Corporation is a holding company for operating insurance
companies in the United States. The Company filed for chapter
11 protection on August 20, 2003 (Bankr. Del. Case No. 03-12635).
Christopher S. Sontchi, Esq., and William Pierce Bowden, Esq., at
Ashby & Geddes, and Benjamin Hoch, Esq., Irena Goldstein, Esq.,
Carey D. Schreiber, Esq., at Dewey Ballantine LLP represent the
Debtors in their restructuring efforts. As of June 30, 2003, the
Debtor listed approximate assets of $400,000,000 and debts of
$293,000,000.
On August 20, 2003, Trenwick Group, Ltd., and LaSalle Re Holdings
Limited also filed insolvency proceedings in the Supreme Court of
Bermuda. On August 22, 2003, the Bermuda Court granted an order
appointing Michael Morrison and John Wardrop, partners of KPMG in
Bermuda and KPMG LLP in the United Kingdom, respectfully, as Joint
Provisional Liquidators in respect of TGL and LaSalle.
The Bermuda Court granted the JPLs the power to oversee the
continuation and reorganization of these companies' businesses
under the control of their boards of directors and under the
supervision of the U.S. Bankruptcy Court and the Bermuda Court.
US AIRWAYS: Releases 4th Quarter & Year End 2004 Results
--------------------------------------------------------
On March 1, 2005, US Airways Group, Inc., filed its 2004 Annual
Report on Form 10-K with the Securities and Exchange Commission.
A full-text copy of the Annual Report is available for free at:
http://www.sec.gov/Archives/edgar/data/701345/000119312505038926/d10k.htm
US Airways Group, Inc.
Consolidated Balance Sheets
(in millions)
At December 31, 2004
ASSETS
Current Assets
Cash and cash equivalents $738
Short-term investments -
Restricted cash 99
Receivables, net 252
Materials and supplies, net 177
Prepaid expenses and other 147
--------
Total Current Assets 1,413
Property and Equipment
Flight equipment 3,176
Ground property and equipment 372
Less accumulated depreciation and amortization (316)
--------
3,232
Purchase deposits for flight equipment 138
--------
Total Property and Equipment 3,370
Other Assets
Goodwill 2,490
Other intangibles, net 532
Restricted cash 527
Other assets, net 90
--------
Total Other Assets 3,639
--------
TOTAL ASSETS $8,422
========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Current maturities of debt $721
Accounts payable 353
Traffic balances payable and unused tickets 820
Accrued aircraft rent 51
Accrued salaries, wages and vacation 162
Other accrued expenses 276
--------
Total Current Liabilities 2,383
Noncurrent Liabilities and Deferred Credits
Long-term debt, net of current maturities -
Deferred gains and credits, net 44
Postretirement benefits other than pensions 2
Employee benefit liabilities and other 248
--------
Total Noncurrent Liabilities and Deferred Credits 294
Liabilities Subject to Compromise 6,179
Commitments and Contingencies
Stockholders' Equity (Deficit)
Class A Common Stock 51
Class B Common Stock 5
Paid-in capital 410
Accumulated deficit (785)
Common stock held in treasury, at cost (3)
Deferred compensation (14)
Accumulated other comprehensive loss (98)
--------
Total Stockholders' Equity (Deficit) (434)
--------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $8,422
========
US Airways Group, Inc.
Consolidated Statement of Cash Flows
Year ended December 31, 2004
(in millions)
Net cash from operating activities:
Net Income (loss) (611)
Fresh start adjustments (15)
Other reorganization items 35
Depreciation and amortization 248
Amortization of deferred gains and credits (63)
Stock-based compensation 50
Other 7
Changes in assets and liabilities:
Decrease in receivables 1
Increase in materials & other assets (22)
Increase in traffic balances payable (15)
Increase in payables & accrued expenses 262
Increase in postretirement benefits 45
--------
Net cash provided by operating activities
before reorganization items (78)
Reorganization items (11)
--------
Net cash (used for) operating activities (89)
Cash flows from investing activities
Capital expenditures (217)
Dispositions of property 18
Decrease in short-term investments 358
Decrease in restricted funds (76)
--------
Net cash provided by investing activities 83
Cash flows from financing activities
Proceeds from issuance of debt 240
Principal payments on debt & other obligations (425)
--------
Net cash (used for) financing activities (185)
--------
Net (decrease in) cash & cash equivalents (191)
--------
Cash & equivalents beginning of period 929
--------
Cash & equivalents end of period 738
========
Headquartered in Arlington, Virginia, US Airways' primary business
activity is the ownership of the common stock of:
* US Airways, Inc.,
* Allegheny Airlines, Inc.,
* Piedmont Airlines, Inc.,
* PSA Airlines, Inc.,
* MidAtlantic Airways, Inc.,
* US Airways Leasing and Sales, Inc.,
* Material Services Company, Inc., and
* Airways Assurance Limited, LLC.
Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors
in their restructuring efforts. In the Company's second
bankruptcy filing, it lists $8,805,972,000 in total assets and
$8,702,437,000 in total debts. (US Airways Bankruptcy News, Issue
No. 84; Bankruptcy Creditors' Service, Inc., 215/945-7000)
US AIRWAYS: Earns $720 Million of Net Income in January 2005
------------------------------------------------------------
US Airways Group, Inc.
Consolidated Balance Sheet
At January 31, 2005
(in thousands)
Current Assets:
Cash and cash equivalents $543,063
Restricted cash 100,984
Receivables, net 288,456
Materials and supplies, net 165,927
Prepaid expenses and other 169,768
----------
Total Current Assets 1,268,198
Property and Equipment:
Flight equipment 3,300,563
Ground property and equipment 374,565
Less accumulated depreciation and amortization (333,977)
----------
3,341,151
Purchase deposits for flight equipment 93,007
----------
Total Property and Equipment 3,434,158
Other Assets:
Goodwill 2,489,638
Other intangibles, net 529,350
Restricted cash 554,216
Other assets, net 93,694
----------
Total Other Assets 3,666,898
----------
Total Assets $8,369,254
==========
Current Liabilities:
Current maturities of long-term debt
and capital lease obligations $729,539
Accounts payable 379,851
Traffic balances payable and unused tickets 861,909
Accrued aircraft rent 7,408
Accrued salaries, wages and vacation 171,484
Other accrued expenses 293,378
----------
Total Current Liabilities 2,443,559
Noncurrent Liabilities and Deferred Credits:
Long-term debt and capital lease
obligations, net of current maturities 0
Deferred gains and credits, net 43,286
Postretirement benefits other than pensions 1,906
Employee benefit liabilities and other 242,102
----------
Total Noncurrent Liabilities and Deferred Credits 287,294
Liabilities Subject to Compromise 5,231,828
Commitments and Contingencies:
Stockholders' Equity:
Class A Common Stock 50,616
Class B Common Stock 5,000
Paid-in capital 410,133
Accumulated deficit (64,648)
Common stock held in treasury, at cost (2,815)
Deferred compensation (11,612)
Accumulated other comprehensive income 19,899
----------
Total Stockholders' Equity 406,573
----------
Total Liabilities & Stockholders' Equity $8,369,254
==========
US Airways Group, Inc.
Consolidated Statement of Operations
January 1, to January 31, 2005
(in thousands)
Operating Revenues:
Passenger transportation $421,383
Cargo and freight 5,472
Other 51,496
----------
Total Operating Revenues 478,351
Operating Expenses:
Personnel costs 174,241
Aviation fuel 113,935
US Airways Express capacity purchases 66,363
Aircraft rent 39,267
Other rent and landing fees 32,282
Selling expenses 32,540
Aircraft maintenance 27,322
Depreciation and amortization 18,448
Other 108,337
----------
Total Operating Expenses 612,735
Operating Loss (134,384)
Other Income (Expense):
Interest income 891
Interest expense, net (24,949)
Reorganization items, net 877,779
Other, net 1,109
----------
Other Income (Expense), Net 854,830
Income Before Income Taxes 720,446
Income Tax Provision 0
----------
Net Income $720,446
==========
US Airways Group, Inc.
Consolidated Statement of Cash Flows
Month ended January 31, 2005
(in thousands)
Net cash used for operating activities
before reorganization items ($148,987)
Reorganization items, net (2,326)
----------
Net cash used for operating activities (151,313)
Cash flows from investing activities:
Capital expenditures and purchase deposits
for flight equipment, net (36,695)
Proceeds from dispositions of property 1,941
Increase in restricted cash (28,765)
----------
Net cash used for investing activities (63,519)
Cash flows from financing activities:
Proceeds from issuance of long-term debt 42,444
Principal payments on long-term debt
and capital lease obligations (22,581)
----------
Net cash provided by financing activities 19,863
Net decrease in Cash and cash equivalents (194,969)
----------
Cash and cash equivalents at beginning of period 738,032
----------
Cash and cash equivalents at end of period $543,063
==========
Headquartered in Arlington, Virginia, US Airways' primary business
activity is the ownership of the common stock of:
* US Airways, Inc.,
* Allegheny Airlines, Inc.,
* Piedmont Airlines, Inc.,
* PSA Airlines, Inc.,
* MidAtlantic Airways, Inc.,
* US Airways Leasing and Sales, Inc.,
* Material Services Company, Inc., and
* Airways Assurance Limited, LLC.
Under a chapter 11 plan declared effective on March 31, 2003,
USAir emerged from bankruptcy with the Retirement Systems of
Alabama taking a 40% equity stake in the deleveraged carrier in
exchange for $240 million infusion of new capital.
US Airways and its subsidiaries filed another chapter 11 petition
on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian
P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning,
Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and
Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors
in their restructuring efforts. In the Company's second
bankruptcy filing, it lists $8,805,972,000 in total assets and
$8,702,437,000 in total debts. (US Airways Bankruptcy News, Issue
No. 84; Bankruptcy Creditors' Service, Inc., 215/945-7000)
WESTPOINT STEVENS: Posts $21.6 Million Net Loss in January 2005
---------------------------------------------------------------
WESTPOINT STEVENS, INC.
Balance Sheet
At January 31, 2005
(in thousands)
Assets
Current Assets
Cash and cash equivalents $2,090
Short-term investments -
Accounts receivable, net 195,335
Inventories 291,608
Prepaid expenses and other current assets 21,247
----------
Total current assets 510,280
Total investments and other assets 118,346
Goodwill -
Property, Plant and Equipment, net 490,280
----------
TOTAL ASSETS $1,118,906
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise:
Senior Credit Facility $438,208
DIP Credit Agreement 51,153
Second lien facility 165,000
Accrued interest payable 1,446
Accounts payable - trade 50,744
Accounts payable - intercompany 168,013
Other accrued liabilities 123,332
Deferred income taxes 3,856
Pension and other liabilities 142,078
----------
Total liabilities not subject to compromise 1,143,830
Liabilities Subject to Compromise
Senior notes 1,000,000
Deferred financing fees (4,437)
Accrued interest payable on Senior Notes 36,313
Accounts payable 27,557
Other payables and accrued liabilities 8,233
Pension and other liabilities 18,923
----------
Total liabilities not subject to compromise 1,086,589
----------
Total Liabilities 2,230,419
Shareholders' Equity (Deficit)
Equity of subsidiaries (123,757)
Common stock 711
Capital surplus/Treasury Stock 51,436
Retained earnings (deficit) (927,640)
Minimum pension liability adjustment (109,403)
Other adjustments (2,860)
Unearned compensation -
----------
Stockholders' Equity (Deficit) (1,111,513)
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $1,118,906
==========
WESTPOINT STEVENS, INC.
Statement of Operations
Month Ended January 31, 2005
(in thousands)
Total sales $125,507
Cost of sales 119,885
----------
Gross profit 5,622
Selling and administrative expenses
Selling expenses 4,458
Warehousing and shipping 6,200
Advertising 482
Division administrative expense 1,136
MIS expense 1,713
Corporate administrative expense 1,666
----------
Total selling and administrative expense 15,655
Restructuring and impairment charge 153
Fixed asset impairment charge -
Goodwill impairment charge -
----------
Profit (loss) from operations (10,186)
Interest expense
Interest expense - outside 8,255
Capitalized interest expense -
Interest expense - intercompany 546
Interest income 1
Interest income - intercompany -
----------
Net interest expense 8,800
Other expense
Miscellaneous 665
Royalties - intercompany 2,991
Transaction gain/loss -
----------
Total other expense 3,656
Other income
Royalties - intercompany -
Dividends -
Sale of assets -
Miscellaneous 5
----------
Total other income 5
----------
Net other expense 3,651
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items (22,637)
Chapter 11 reorganization expenses 1,340
Income tax expense (benefit) (2,399)
Extraordinary item - net of taxes -
----------
Net Income (loss) ($21,578)
==========
WESTPOINT STEVENS, INC.
Statement of Cash Flows
Month Ended January 31, 2005
(in thousands)
Cash flows from operations:
Net income (loss) ($21,578)
Restructuring -
Equity adjustments 1,212
Non-cash items
Depreciation and amortization expense 14,379
Fixed asset impairment charge -
Gain/(loss) on sale of assets -
Working Capital Changes
Decrease/(increase) - accounts receivable 6,951
Decrease/(increase) - inventories (2,093)
Decrease/(increase) - other current assets (13)
Decrease/(increase) - other non-current
assets & debts 698
Increase/(decrease) - accounts payable (trade) 1,922
Increase/(decrease) - a/p (intercompany) 4,170
Increase/(decrease) - accrued liabilities 2,987
Increase/(decrease) - accrued interest payable 939
Increase/(decrease) - pension and other liabilities (2,661)
Increase/(decrease) - deferred federal income tax (1,334)
----------
Total cash flows from operations 5,579
Cash flows from investing activities:
Decrease/(increase) - short-term investments -
Capital expenditures (501)
Transfers -
Net proceeds from sale of assets -
----------
Total cash flows from investing (501)
Cash flows from financing activities:
Increase/(decrease)- DIP Credit Agreement (6,996)
----------
Total cash flows from financing (6,996)
Beginning cash balance 4,008
Change in cash (1,918)
----------
Ending cash balance $2,090
==========
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. Chairman and CEO Holcombe Green controls 8% of
WestPoint Stevens. 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 Bankruptcy
News, Issue No. 40; Bankruptcy Creditors' Service, Inc.,
215/945-7000)
WESTPOINT STEVENS: WP Stevens I Posts $3MM Net Income in January
----------------------------------------------------------------
WESTPOINT STEVENS, INC., I
Balance Sheet
At January 31, 2005
(in thousands)
Assets
Current Assets
Cash and cash equivalents $34
Short-term investments -
Accounts receivable - customers -
Accounts receivable - intercompany 14,568
Total Inventories 4,923
Prepaid expenses and other current assets -
--------
Total current assets 19,525
Total investments and other assets 124,052
Goodwill -
Property, Plant and Equipment, net 11,953
--------
TOTAL ASSETS $155,530
========
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 $781
Accounts payable - intercompany -
Other accrued liabilities 7,449
Deferred income taxes -
Pension and other liabilities -
--------
Total Liabilities Not Subject to Compromise 8,230
Liabilities Subject to Compromise
Senior notes -
Deferred financing fees -
Accrued interest payable on Senior Notes -
Accounts payable 1,438
Other payables and accrued liabilities -
Pension and other liabilities -
--------
Total Liabilities Subject to Compromise 1,438
--------
Total Liabilities 9,668
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 1
Capital surplus/Treasury Stock 70,559
Retained earnings (deficit) 75,302
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
--------
Shareholders' Equity (Deficit) 145,862
--------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $155,530
========
WESTPOINT STEVENS, INC., I
Statement of Operations
Month Ended January 31, 2005
(in thousands)
Net sales $5,699
Cost of goods sold 3,576
--------
Gross earnings 2,123
Selling and administrative expenses
Selling expenses 2
Warehousing and shipping 243
Advertising -
Division administrative expense -
MIS expense -
Corporate administrative expense 170
--------
Total selling and administrative expense 415
Restructuring and impairment charge -
Goodwill impairment charge -
--------
Operating earnings (loss) 1,708
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany -
Interest income -
Interest income - intercompany 611
--------
Net interest expense (611)
Other expense
Miscellaneous -
Royalties - intercompany 190
Transaction gain/loss -
--------
Total other expense 190
Other income
Royalties - intercompany 3,228
Dividends -
Sale of assets -
Miscellaneous -
--------
Total other income 3,228
--------
Net other expense (3,038)
--------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items 5,357
Chapter 11 reorganization expenses -
Income tax expense (benefit) 1,878
Extraordinary item - net of taxes -
--------
Net Income (loss) $3,479
========
WESTPOINT STEVENS, INC., I
Statement of Cash Flows
Month Ended January 31, 2005
(in thousands)
Cash flows from operations:
Net income (loss) $3,479
Non-cash items
Depreciation and amortization expense 140
Working Capital Changes
Decrease/(increase) - a/r (customers) -
Decrease/(increase) - a/r (intercompany) (4,735)
Decrease/(increase) - inventories (1,247)
Decrease/(increase) - other current assets -
Decrease/(increase) - other non-current assets -
Increase/(decrease) - accounts payable (trade) 22
Increase/(decrease) - a/p (intercompany) -
Increase/(decrease) - accrued liabilities 2,338
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
--------
Total cash flows from operations (3)
Cash flows from investing activities:
Decrease/(increase) short term investments -
Capital expenditures -
Transfers -
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 37
Change in cash (3)
--------
Ending cash balance $34
========
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. Chairman and CEO Holcombe Green controls 8% of
WestPoint Stevens. 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 Bankruptcy
News, Issue No. 40; Bankruptcy Creditors' Service, Inc.,
215/945-7000)
WESTPOINT STEVENS: JP Stevens & Co.'s January Operating Report
--------------------------------------------------------------
J.P. STEVENS & CO., INC.
Balance Sheet
At January 31, 2005
(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
January 2005.
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. Chairman and CEO Holcombe Green controls 8% of
WestPoint Stevens. 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 Bankruptcy
News, Issue No. 40; Bankruptcy Creditors' Service, Inc.,
215/945-7000)
WESTPOINT STEVENS: JP Stevens Enterprises' Jan. Operating Report
----------------------------------------------------------------
J.P. STEVENS ENTERPRISES, INC.
Balance Sheet
At January 31, 2005
(in thousands)
Assets
Current Assets
Cash and cash equivalents $10
Short-term investments -
Accounts receivable - customers, net -
Accounts receivable - intercompany 17,414
Prepaid expenses and other current assets -
----------
Total current assets 17,424
Total investments & other assets -
Goodwill -
----------
TOTAL ASSETS $17,424
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise:
Accounts payable - intercompany -
Other accrued liabilities $291
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise 291
Liabilities Subject to Compromise -
----------
Total Liabilities 291
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 2
Capital surplus/Treasury Stock -
Retained earnings (deficit) 17,131
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Stockholders' Equity (Deficit) 17,133
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $17,424
==========
J.P. STEVENS ENTERPRISES, INC.
Statement of Operations
Month Ended January 31, 2005
(in thousands)
Net sales -
Cost of goods sold -
----------
Gross earnings -
Selling and administrative expenses
Selling expenses $2
Warehousing and shipping -
Advertising -
Division administrative expense -
MIS expense -
Corporate administrative expense -
----------
Total selling and administrative expense 2
Restructuring and impairment charge -
Goodwill impairment charge -
----------
Operating earnings (loss) (2)
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany -
Interest income -
Interest income - intercompany 100
----------
Net interest expense (100)
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 288
Chapter 11 reorganization expenses -
Income tax expense (benefit) 101
Extraordinary item - net of taxes -
----------
Net Income (loss) $187
==========
J.P. STEVENS ENTERPRISES, INC.
Statement of Cash Flows
Month Ended January 31, 2005
(in thousands)
Cash flows from operations:
Net income (loss) $187
Non-cash items
Depreciation and amortization -
Working Capital Changes
Decrease/(increase) - a/r (intercompany) (289)
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 (100)
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
----------
Total cash flows from operations (2)
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 12
Change in cash (2)
----------
Ending cash balance $10
==========
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. Chairman and CEO Holcombe Green controls 8% of
WestPoint Stevens. 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 Bankruptcy
News, Issue No. 40; Bankruptcy Creditors' Service, Inc.,
215/945-7000)
WESTPOINT STEVENS: WP Stevens Stores' January Operating Report
--------------------------------------------------------------
WESTPOINT STEVENS STORES, INC.
Balance Sheet
At January 31, 2005
(in thousands)
Assets
Current Assets
Cash and cash equivalents $1,130
Short-term investments -
Accounts receivable - customers 50
Accounts receivable - intercompany 4,073
Total Inventories 18,535
Prepaid expenses and other current assets 862
--------
Total current assets 24,650
Total investments & other assets -
Goodwill -
Property, plant and equipment, net 2,395
--------
TOTAL ASSETS $27,045
========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise
Accounts payable - trade $439
Accounts payable -intercompany -
Other accrued liabilities 1,558
Deferred income taxes -
Pension and other liabilities -
--------
Total Liabilities Not Subject to Compromise 1,997
--------
Liabilities Subject to Compromise
Accounts payable 1,677
--------
Total Liabilities 3,674
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 1
Capital surplus/Treasury Stock 15,955
Retained earnings (deficit) 7,415
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
--------
Stockholders' Equity (Deficit) 23,371
--------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $27,045
========
WESTPOINT STEVENS STORES, INC.
Statement of Operations
Month Ended January 31, 2005
(in thousands)
Net sales $6,297
Cost of goods sold 3,803
--------
Gross earnings 2,494
Selling and administrative expenses
Selling expenses 2,128
Warehousing and shipping 226
Advertising 246
Division administrative expense 287
MIS expense 68
Corporate administrative expense 106
--------
Total selling and administrative expense 3,061
Restructuring and impairment charge -
Goodwill impairment charge -
--------
Operating earnings (loss) (567)
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany 198
Interest income -
Interest income - intercompany -
--------
Net interest expense 198
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 (765)
Chapter 11 reorganization expenses -
Income tax expense (benefit) (267)
Extraordinary item - net of taxes -
--------
Net Income (loss) ($498)
========
WESTPOINT STEVENS STORES, INC.
Statement of Cash Flows
Month Ended January 31, 2005
(in thousands)
Cash flows from operations:
Net income (loss) ($498)
Non-cash items
Depreciation and amortization 59
Working Capital Changes
Decrease/(increase) - a/r (customers) (9)
Decrease/(increase) - a/r (intercompany) 887
Decrease/(increase) - inventories (631)
Decrease/(increase) - other current assets 61
Decrease/(increase) - other non-current assets -
Increase/(decrease) - accounts payable (trade) (196)
Increase/(decrease) - a/p (intercompany) -
Increase/(decrease) - accrued liabilities 309
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
--------
Total cash flows from operations (19)
Cash flows from investing activities
Capital expenditures (135)
Transfers -
Net proceeds from sale of assets -
--------
Total cash flows from investing (135)
Cash flows from financing activities
Increase/(decrease)- DIP Credit Agreement -
--------
Total cash flows from financing -
Beginning cash balance 1,284
Change in cash (154)
--------
Ending cash balance $1,130
========
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. Chairman and CEO Holcombe Green controls 8% of
WestPoint Stevens. 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 Bankruptcy
News, Issue No. 40; Bankruptcy Creditors' Service, Inc.,
215/945-7000)
WINSTAR COMMS: Releases January 2005 Monthly Operating Report
-------------------------------------------------------------
Winstar Communications, Inc.
Balance Sheet
As of January 31, 2005
ASSETS
Unrestricted Cash and Equivalents $25,311,638
Restricted Cash and Cash Equivalents -
Accounts Receivable (Net) -
Notes Receivable -
Inventories -
Prepaid Expenses -
Professional Retainers -
Other Current Assets -
------------
Total Current Assets 25,311,638
------------
Real Property and Improvements
Machinery & Equipment -
Furniture, Fixtures & Office Equipment -
Leasehold Improvements -
Vehicles -
Less: Accumulated Depreciation -
------------
Total Property & Equipment -
------------
Loans to Insiders
Other Assets -
------------
Total Other Assets -
------------
TOTAL ASSETS $25,311,638
============
LIABILITIES & SHAREHOLDER'S EQUITY
Accounts Payable -
Taxes Payable -
Wages Payable -
Notes Payable -
Rent/Leases - Building/Equipment -
Secured Debt/Adequate Protection Payments -
Professional Fees -
Amounts Due to Insiders -
Other Post Conversion Liabilities -
------------
Total Post Conversion Liabilities -
------------
Secured Debt -
Priority Debt -
Unsecured Debt -
------------
Total Pre-Conversion Liabilities -
------------
Owners' Equity
Capital Stock -
Additional Paid In Capital -
Partners' Capital Account -
Owners' Equity Account $57,559,619
Retained Earnings - Pre-Conversion -
Retained Earnings - Post-Conversion (32,247,981)
Adjustments to Owner Equity -
Postpetition Contributions (Distributions)(Draws) -
------------
Net Owners' Equity 25,311,638
------------
TOTAL LIABILITIES & OWNERS' EQUITY $25,311,638
============
Winstar Communications, Inc.
Statement of Operations
For the Month Ended January 31, 2005
Gross Revenues -
Less: Returns and Allowances -
------------
Net Revenue -
Beginning Inventory -
Add: Purchases -
Add: Cost of Labor -
Add: Other Costs -
Less: Ending Inventory -
Cost of Goods Sold -
------------
Gross Profit -
Advertising -
Auto and Truck Expense -
Bad Debts -
Contributions -
Employee Benefits Programs -
Insider Compensation -
Insurance -
Management Fees/Bonuses -
Office Expense -
Pension & Profit-Sharing Plans -
Repairs and Maintenance -
Rent and Lease Expenses -
Salaries/Commissions/Fees -
Supplies -
Taxes - Payroll $865
Taxes - Real Estate -
Taxes - Other -
Travel and Entertainment -
Utilities -
Other -
------------
Total Operating Expenses before Depreciation 865
Depreciation/Depletion/Amortization -
------------
Net Profit (Loss) before other income and expenses (865)
Other Income $28,513
Worker's Comp Refund -
Tax Refund -
Leasehold Buyback -
Interest Expense -
Other Expense 96,723
Pmt from Sale of Assets - Tera -
Compensation as Director per Court Order -
Payment Per Stipulation -
Pmt from Sale of Assets - American Communications -
Return of DIP Loan Disbursement -
Pmt from Sale of Del Telecom International Stock -
Pmt per NW Nexus Sale Order -
Pmt per 1/7 Order and APA Agreement -
Payment per 2/10/03 Court Order -
Pmt PTO Employment Contract -
Turnover of Funds to IDT -
Turnover of Bank Account -
Insurance Expense 1,008
Reimbursement of Expenses -
Payroll 16,517
Sale of Assets -
------------
Net Profit (Loss) before reorganization items (86,600)
Professional Fees -
U.S. Trustee Quarterly Fees -
Interest Earned on Accumulated Cash from Chapter 11 -
Gain (Loss) from Sale of Equipment -
Other Reorganization Expenses 60,000
Total Reorganization Expenses 60,000
Income Taxes -
------------
Net Profit (Loss) ($146,600)
============
Winstar Communications, Inc.
Cash Receipts and Disbursements
For the Month Ended January 31, 2005
Cash Beginning of Month $25,458,237
Receipts:
Cash Sales -
Accounts Receivable -
Return of DIP Loan Disbursement -
Sale of ISP Northwest Nexus -
Holdings Funds -
Insurance Refund Dividend -
Final Settlement -
Liquidation of Well's Fargo Acct -
Liquidation of Fleet Account per stipulation -
Transfer from AON -
Leasehold Buyback -
Closing of Bank Account -
Pmt from Sales of Assets - Tera -
Pmt from Sales of Assets - American Communications -
Pmt from Sale of Del Telecom International Stock -
Transfers -
Claim Settlement -
Refund of Overpayment -
Tax Refund -
Worker's Comp Refund -
Collection on Preferences 12,800
Turnover of Bank Account -
Reimbursement - Moving Expenses -
Interest 15,713
Payment from Sale of Assets -
------------
Total Receipts $28,513
Disbursements:
Employee Benefits -
Net Payroll $16,517
Payroll Taxes 865
Sales, Use, & Other Taxes -
Chapter 11 Quarterly Fees -
Chapter 11 Administrative Claims -
Insurance 1,008
Additional Payment of Funds - CTG Revised Accounting -
Pmt per NW Nexus Sale Order -
Pmt per 1/7 Order and APA Agreement -
Advertising Fees -
License Fees -
Legal Fees per Court Order -
Administrative 145
Telephone -
Compensation as Director per Court Order -
Distribution Per Orders of 12/12/02 -
Payment per 2/10/03 Court Order -
Pmt PTO Employment Contract -
Owner Draw -
Reimbursement of Check from SF Interactive -
Reimbursement of Expenses -
Reimbursement of Expenses per Order of 5/13/03 -
Turnover of Funds to IDT -
Trustee Bond 60,000
Professional Fees -
Trustee Expense -
Trustee Commission 94,889
Bankruptcy Service Payments 1,688
Rent -
Moving Expenses -
Payment per Stipulation -
Payment of Carve Out per order of 12/11/02 -
Payment per stipulation and order of 4/15/03
- per carve out -
Per Order of 4/15/03 - payment of chapter 11 carve out -
Pmt per order of 4/15/03
- pmt of carve out chapter 11 fees -
Attorney's Fees for Counsel for Trustee -
Accounting Fees for acct. for Chapter 7 Trustee -
Tax Consultant Fees -
Payment - Summary Judgment -
Payment of Claims -
------------
Total Disbursements 175,112
------------
Net Cash Flow (146,600)
------------
Cash - End of Month $25,311,638
============
Headquartered in New York, New York, Winstar Communications, Inc.,
provides broadband services to business customers. The Company
and its debtor-affiliates filed for chapter 11 protection on
April 18, 2001 (Bankr. D. Del. Case Nos. 01-01430 through
01-01462). The Debtors obtained the Court's approval converting
their case to a chapter 7 liquidation proceeding in January 2002.
Christine C. Shubert serves as the Debtors' chapter 7 trustee.
When the Debtors filed for bankruptcy, they listed $4,975,437,068
in total assets and $4,994,467,530 in total debts. (Winstar
Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service,
Inc., 215/945-7000)
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania,
USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L.
Metzler, Emi Rose S.R. Parcon, Rizande B. Delos Santos, 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 ***