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)

                          *********

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                          *********

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.

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