TCR_Public/050409.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, April 9, 2005, Vol. 9, No. 83

                          Headlines

AMERICAN BUSINESS: Files Schedules of Assets & Debts
AMERICAN BUSINESS: Files Consolidated Schedules of Assets & Debts
AMERICAN BUSINESS: AB Mortgage's Schedules of Assets & Debts
AMERICAN BUSINESS: American Business Credit Files Schedules
AMERICAN BUSINESS: Home American's Schedules of Assets & Debts

AMERICAN BUSINESS: Tiger Relocation Files Schedules
CATHOLIC CHURCH: Spokane's December 2004 Monthly Operating Report
CATHOLIC CHURCH: Spokane's January 2005 Monthly Operating Report
COVANTA WTE: Earns $182,576 of Net Income in January 2005
FRIEDMAN'S INC: Files Reports for Two Weeks Ended Jan. 29, 2005

FRIEDMAN'S INC: Files Reports for Four Weeks Ended Feb. 26, 2005
INTERSTATE BAKERIES: Files Financial Statements Ending Feb. 5
PG&E NATIONAL: ESV's July 2004 Monthly Operating Report
PG&E NATIONAL: ESV's August 2004 Monthly Operating Report
PG&E NATIONAL: ESV's September 2004 Monthly Operating Report

PG&E NATIONAL: Quantum's August 2004 Monthly Operating Report
PG&E NATIONAL: Quantum's September 2004 Monthly Operating Report
PG&E NATIONAL: ET Gas' September 2004 Monthly Operating Report
PG&E NATIONAL: ET Gas' October 2004 Monthly Operating Report
PG&E NATIONAL: ET Investments' September 2004 Operating Report

PG&E NATIONAL: ET Investments' October 2004 Operating Report
PG&E NATIONAL: ET Holdings' August 2004 Monthly Operating Report
PG&E NATIONAL: ET Holdings' Sept. 2004 Monthly Operating Report
PG&E NATIONAL: ET Holdings' October 2004 Operating Report
PG&E NATIONAL: ET Power's Sept. 2004 Monthly Operating Report

PG&E NATIONAL: ET Power's October 2004 Monthly Operating Report
NEWPOWER HOLDINGS: Files February 2005 Monthly Operating Report
PARMALAT: Finanziaria Reports February 2005 Financial Results
ROUGE INDUSTRIES: Files August 2004 Monthly Operating Report
ROUGE INDUSTRIES: Files September 2004 Monthly Operating Report

ROUGE INDUSTRIES: Files October 2004 Monthly Operating Report
ROUGE INDUSTRIES: Files November 2004 Monthly Operating Report
ROUGE INDUSTRIES: Files December 2004 Monthly Operating Report
ROUGE INDUSTRIES: Files January 2005 Monthly Operating Report
ROUGE INDUSTRIES: Files February 2005 Monthly Operating Report

SOLUTIA INC: Posts $316 Million Net Loss for Fiscal Year 2004
SOLUTIA INC: Earns $1 Million of Net Income in February 2005
TORCH OFFSHORE: Posts $3.9 Million Net Loss in February 2005
TRENWICK AMERICA: Posts $60 Million Net Loss in February 2005
TRINITY ENERGY: Releases January 2005 Operating Report

WESTPOINT STEVENS: Posts $21.8 Million Net Loss in February 2005
WESTPOINT STEVENS: WP Stevens I Posts $3MM Net Income in February
WESTPOINT STEVENS: WP Stevens Stores' February Operating Report
WESTPOINT STEVENS: JP Stevens & Co.'s February Operating Report
WESTPOINT STEVENS: JP Stevens Enterprises' Feb. Operating Report

US AIRWAYS: Posts $119 Million Net Loss in February 2005

                          *********

AMERICAN BUSINESS: Files Schedules of Assets & Debts
----------------------------------------------------

A.     Real property                                         $0

B.     Personal property
B.1    Cash on hand                                           0
B.2    Bank accounts
          JPMorgan Chase Bank, N.A.                     663,079
          Black Rock, Inc.                              750,907
          Firstrust Savings Bank                         28,351
                                                         24,288
B.3    Security deposits                                      0
B.4    Household goods                                        0
B.5    Books, art work & collectibles                   unknown
B.6    Wearing apparel                                        0
B.7    Furs and jewelry                                  27,024
B.8    Firearms and sporting goods                            0
B.9    Interests in insurance policies                        0
B.10   Annuities                                              0
B.11   Interests in retirement plans                          0
B.12   Stock interests                                  unknown
B.13   Interests in partnerships                              0
B.14   Bonds                                                  0
B.15   Accounts receivable                              unknown
B.16   Alimony                                                0
B.17   Other liquidated debts owed                            0
B.18   Equitable and future interests                         0
B.19   Contingent interests                                   0
B.20   Other contingent & unliquidated claims                 0
B.21   Patents, copyrights & trademarks                 unknown
B.22   Other intangibles                                unknown
B.23   Automobiles                                            0
B.24   Boats                                                  0
B.25   Aircraft                                               0
B.26   Office equipment and supplies                    unknown
B.27   Machinery, furniture and fixtures                      0
B.28   Inventory                                              0
B.29   Animals                                                0
B.30   Crops                                                  0
B.31   Farming equipment                                      0
B.32   Farm supplies                                          0
B.33   Other personal property                           30,000

       TOTAL SCHEDULED ASSETS                        $1,523,649
       ========================================================

C.     Property claimed as exempt                Not Applicable

D.     Secured claims                                         0

E.     Unsecured priority claims
          Internal Revenue Service                    1,461,010
          Pennsylvania Department of Revenue            300,000
          State of Delaware                             104,667

F.     Unsecured non-priority claims
          A/P Run                                   218,780,516
          Unsecured Noteholders                     521,633,096
          Collateralized Noteholders
             (December 2003 Offering)                57,017,667
          Collateralized Noteholders
             (May 2004 Offering)                     43,818,529

       TOTAL SCHEDULED LIABILITIES                 $843,115,485
       ========================================================

Headquartered in Philadelphia, Pennsylvania, American Business
Financial Services, Inc., together with its subsidiaries, is a
financial services organization operating mainly in the eastern
and central portions of the United States and California.  The
Company originates, sells and services home mortgage loans through
its principal direct and indirect subsidiaries.  The Company,
along with four of its subsidiaries, filed for chapter 11
protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203).
Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the
Debtors in their restructuring efforts.  When the Company filed
for protection from its creditors, it listed $1,083,396,000 in
total assets and $1,071,537,000 in total debts.  (American
Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


AMERICAN BUSINESS: Files Consolidated Schedules of Assets & Debts
-----------------------------------------------------------------

A.     Real property                                         $0

B.     Personal property
B.2    Bank accounts
          Wilmington Trust Company                       $3,358
B.12   Stock interests                                  unknown
B.15   Accounts receivable                              unknown
B.20   Other contingent & unliquidated claims
          I/O Strips                                399,116,076

       TOTAL SCHEDULED ASSETS                      $399,119,434
       ========================================================

C.     Property claimed as exempt                Not Applicable

D.     Secured claims
          Law Debenture Trust Company of New York    57,029,207
          The Patriot Group, LLC                     20,887,693
          Wells Fargo Bank N.A.                      43,850,314
          Clearwing Capital, LLC                     15,000,000

E.     Unsecured priority claims
          Internal Revenue Service                    1,461,010

F.     Unsecured non-priority claims
          Wilmington Trust Company                       20,000

       TOTAL SCHEDULED LIABILITIES                 $138,248,224
       ========================================================

Headquartered in Philadelphia, Pennsylvania, American Business
Financial Services, Inc., together with its subsidiaries, is a
financial services organization operating mainly in the eastern
and central portions of the United States and California.  The
Company originates, sells and services home mortgage loans through
its principal direct and indirect subsidiaries.  The Company,
along with four of its subsidiaries, filed for chapter 11
protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203).
Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the
Debtors in their restructuring efforts.  When the Company filed
for protection from its creditors, it listed $1,083,396,000 in
total assets and $1,071,537,000 in total debts.  (American
Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


AMERICAN BUSINESS: AB Mortgage's Schedules of Assets & Debts
------------------------------------------------------------

A.     Real property                                         $0

B.     Personal property
B.15   Accounts receivable
          LOA                                          $220,870
          Interest receivables                          121,197
B.26   Office equipment and supplies                    unknown
B.27   Machinery, furniture and fixtures                unknown
B.33   Other personal property
          Loans available for sale                   34,405,581

       TOTAL SCHEDULED ASSETS                       $34,747,648
       ========================================================

C.     Property claimed as exempt                Not Applicable

D.     Secured claims
          Chrysalis Warehouse Funding, LLC           33,555,719

E.     Unsecured priority claims
          Internal Revenue Service                    1,461,010

F.     Unsecured non-priority claims
          A/P Run
             American Business Financial Services
                Intercompany                          3,071,672
             Anita Shaw Recruiting, Inc.                 30,000
             Archive Systems                             21,208
             AT & T                                      13,075
             Chesapeake Information Services             70,000
             Dickman & Associates, Inc.                  88,388
             Geotrac                                     15,750
             Marsh U.S.A., Inc.                          10,000
             Nancy Adams Personnel                       15,200
             Residential Appraisal Services              25,975
             Strategic Products and Services             12,771
             U.S. Property and Appraisal Services        48,300
             Worldwide Express                           18,623
             Others                                      69,498

       TOTAL SCHEDULED LIABILITIES                  $38,527,189
       ========================================================

Headquartered in Philadelphia, Pennsylvania, American Business
Financial Services, Inc., together with its subsidiaries, is a
financial services organization operating mainly in the eastern
and central portions of the United States and California.  The
Company originates, sells and services home mortgage loans through
its principal direct and indirect subsidiaries.  The Company,
along with four of its subsidiaries, filed for chapter 11
protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203).
Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the
Debtors in their restructuring efforts.  When the Company filed
for protection from its creditors, it listed $1,083,396,000 in
total assets and $1,071,537,000 in total debts.  (American
Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


AMERICAN BUSINESS: American Business Credit Files Schedules
-----------------------------------------------------------

A.     Real property                                         $0

B.     Personal property
B.1    Cash on hand                                       1,650
B.2    Bank accounts
          Chase Account No. 00103386927                     683
          Chase Account No. 00103387115                     782
B.3    Security deposits
          JPMorgan Chase Bank related to corporate
             credit card account                        100,000
          Fortress related to expense reimbursements    125,310
          Fortress related to indemnification
             obligations                                200,000
          JPMorgan Chase Bank securing reimbursement
             rights against ABC under letter of
             credit                                   7,065,725
          Amounts on deposit in control account in
             favor of Patriot                           113,640
B.5    Books, art work & collectibles                   unknown
B.9    Interests in insurance policies
          Deposit with Blue Cross                       825,000
          Prepaid insurance                             647,619
B.12   Stock interests                                  unknown
B.15   Accounts receivable
          Interest receivable                               778
          Late fee receivable                         6,227,262
          Miscellaneous accounts receivable           1,312,695
          Miscellaneous servicer advances and
             fee receivables                         11,696,405
B.17   Other liquidated debts owed
          Other prepaid expenses                         80,788
          Prepaid dues and subscriptions                 13,622
          Prepaid fees for equipment maintenance        382,081
          Prepaid fees to placement firms                16,274
          Prepaid licensing fees                         15,700
          Prepaid professional fees                     114,191
          Servicer periodic interest advances         5,751,984
B.20   Other contingent & unliquidated claims           unknown
B.21   Patents, copyrights & trademarks                 unknown
B.23   Automobiles
          1996 Ford Explorer                                  0
          2001 Astro Van                                  3,205
          2003 Astro Van                                  7,185
B.26   Office equipment and supplies                    unknown
B.27   Machinery, furniture and fixtures                      0
B.33   Other personal property                          unknown

       TOTAL SCHEDULED ASSETS                       $34,702,579
       ========================================================

C.     Property claimed as exempt                Not Applicable

D.     Secured Claims
          Fortress Investment Group, Inc.                     0
          JP Morgan Chase Bank NA                        56,323
                                                         53,917
          The Patriot Group, LLC                              0
          Escrow and collections accounts            57,000,000
          Credit Tech and Ameer Saleem                        0

E.     Unsecured Priority Claims
          Wages, benefits and vacation                        0
          Internal Revenue Service                    1,461,010
          Pennsylvania Dep't. of Revenue                    679
          State Corp. Commission                          1,330
          Trust fund taxes                                    0

F.     Unsecured Non-Priority Claims
          Alexander Associates                          110,473
          Alliance Consulting                           145,927
          ABFS (Intercompany)                       561,550,072
          AT&T                                          111,193
          CDW Computer Centers, Inc.                    116,120
          Computer Image Systems, Inc.                  165,872
          Concerto Software, Inc.                       341,766
          Delaware Secretary of State                   105,105
          Dewey Ballantine                              110,018
          Duanne Morris and Heckscher LLP               292,700
          H. Terry Hutchens                             112,664
          H2L2 LLP                                      111,534
          Hecker Colasurdo and Segali PC                155,565
          Hughes Watters and Askanase                   105,544
          Keith D. Weiner and Associates                270,918
          One Presidential Blvd. Associates             232,500
          Puleo and Demilio LLC                         491,163
          Purcel Krug and Haller                        134,307
          Robert A. Tremain and Associates PC           157,462
          Securitization Trusts                      25,567,999
          Security Search and Abstract Co., Inc.        165,211
          Shapiro and Fishman                           170,168
          Source One Services Corp.                     139,526
          Spherion Corp.                                105,449
          St. Ives Burrups, Inc.                        122,891
          Thomas Puleo LLC                              102,047
          Verizon Wireless                              122,887
          ZC Sterling Corporation                       680,786
                                                        406,856
          Others                                      8,486,674

          Whole loan purchasers                               0

       TOTAL SCHEDULED LIABILITIES                 $659,464,656
       ========================================================

Headquartered in Philadelphia, Pennsylvania, American Business
Financial Services, Inc., together with its subsidiaries, is a
financial services organization operating mainly in the eastern
and central portions of the United States and California.  The
Company originates, sells and services home mortgage loans through
its principal direct and indirect subsidiaries.  The Company,
along with four of its subsidiaries, filed for chapter 11
protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203).
Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the
Debtors in their restructuring efforts.  When the Company filed
for protection from its creditors, it listed $1,083,396,000 in
total assets and $1,071,537,000 in total debts.  (American
Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


AMERICAN BUSINESS: Home American's Schedules of Assets & Debts
--------------------------------------------------------------

A.     Real property                                         $0

B.     Personal property
B.1    Cash on hand                                        $250
B.2    Bank accounts
          Beneficial Checking Account No. 882010598       8,154
B.3    Security deposits
          Calabasas Village, LLC                         27,836
          HQ Enterprises                                  1,930
          HQ Global Workplace                             3,825
          Lockhead Martin                                29,588
          Lynx Funding LLC                               16,786
          Idwest Plaza                                    3,580
B.12   Stock interests                                  unknown
B.15   Accounts receivable
          LOA (Net book value)                           32,336
          Interest receivable -- loans                  631,431
          Miscellaneous accounts receivable               5,380
B.17   Other liquidated debts owed
          Other prepaid expenses                          9,508
          Prepaid advertising fees                            0
          Prepaid equipment maintenance                   9,973
          Prepaid licensing fees                          8,411
B.21   Patents, copyrights & trademarks                 unknown
B.22   Other intangibles                                unknown
B.26   Office equipment and supplies                    unknown
B.27   Machinery, furniture and fixtures                unknown
B.33   Other personal property
          Leasehold improvements                        unknown
          Loans available for sale                  177,820,125
          Non-accrual loans                             420,119

       TOTAL SCHEDULED ASSETS                      $179,029,232
       ========================================================

C.     Property claimed as exempt                Not Applicable

D.     Secured claims
          Chrysalis Warehouse Funding LLC           173,389,078

E.     Unsecured priority claims
          Franchise Tax Board                               250
          Internal Revenue Service                    1,461,010

F.     Unsecured non-priority claims
          Customer Rebate Program                       905,610
          Accounts Payable Run                        7,191,511

       TOTAL SCHEDULED LIABILITIES                 $182,947,459
       ========================================================

Headquartered in Philadelphia, Pennsylvania, American Business
Financial Services, Inc., together with its subsidiaries, is a
financial services organization operating mainly in the eastern
and central portions of the United States and California.  The
Company originates, sells and services home mortgage loans through
its principal direct and indirect subsidiaries.  The Company,
along with four of its subsidiaries, filed for chapter 11
protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203).
Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the
Debtors in their restructuring efforts.  When the Company filed
for protection from its creditors, it listed $1,083,396,000 in
total assets and $1,071,537,000 in total debts.  (American
Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


AMERICAN BUSINESS: Tiger Relocation Files Schedules
---------------------------------------------------

A.     Real property                                    $10,000

B.     Personal property
B.2    Bank accounts                                     59,101

       TOTAL SCHEDULED ASSETS                           $69,101
       ========================================================

C.     Property claimed as exempt                Not Applicable

D.     Secured claims                                         0

E.     Unsecured priority claims
          Internal Revenue Service                    1,461,010
          NYS Assessment Receivables                        620

F.     Unsecured non-priority claims
          ABFS (Intercompany)                        35,641,731
          CSC Corporation Service Company                 2,389
          New York Department of State                        9

       TOTAL SCHEDULED LIABILITIES                  $37,105,769
       ========================================================

Headquartered in Philadelphia, Pennsylvania, American Business
Financial Services, Inc., together with its subsidiaries, is a
financial services organization operating mainly in the eastern
and central portions of the United States and California.  The
Company originates, sells and services home mortgage loans through
its principal direct and indirect subsidiaries.  The Company,
along with four of its subsidiaries, filed for chapter 11
protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203).
Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the
Debtors in their restructuring efforts.  When the Company filed
for protection from its creditors, it listed $1,083,396,000 in
total assets and $1,071,537,000 in total debts.  (American
Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


CATHOLIC CHURCH: Spokane's December 2004 Monthly Operating Report
-----------------------------------------------------------------
A full-text copy of the Diocese of Spokane's December 2004
monthly operating report is available for free at:

    http://bankrupt.com/misc/spokane_december_MOR.pdf


                   Catholic Diocese of Spokane
                         Balance Sheet
                     As December 31, 2004

ASSETS
   Total Cash Accounts                               $3,910,535
   Total Investments                                  3,909,784
   Total Property                                       495,004
   Total Loans Receivable                             3,264,711
   Total Interfund Loan Receivable                      396,887
   Total Accounts Receivable                             79,618
   Total Land and Buildings & Equip                   2,272,137
   Total Prepaid Expenses                                 4,603
                                                 --------------
Total Assets                                        $14,333,280
                                                 ==============

LIABILITIES AND NET ASSETS

Liabilities
   Total Deposits Payable                             5,261,848
   Total Interest Payable                                 7,573
   Total Accounts Payable                                 3,177

Net Assets
   Total Unrestricted - Fund Balance                 (3,123,998)
   Total Unrestricted Net Assets                     (3,123,998)
   T.R. - Guse Grant Funds                              129,054
   T.R. - Bishop's School Grants Funds                  (89,009)
   Total Replacement Fund                             9,242,625
   Total Diocesan D&L Funding                         2,176,115
   Total Guatemala Funds                                618,173
   Temporarily Restricted                               147,767
                                                 --------------
Total liabilities & net assets                      $14,333,280
                                                 ==============


                   Catholic Diocese of Spokane
                  Income and Expense Statement
              For the period December 1 to 31, 2004

Total Income                                           $207,097
Total Expenses                                          696,072
                                                 --------------
Net Excess or Deficit                                  $488,975
                                                 ==============


                     Catholic Diocese of Spokane
           Statement of Cash Receipts and Disbursements
              For the period December 1 to 31, 2004

Total Cash Receipts                                    $199,961
Total Cash Disbursements                            ($1,044,746)
                                                 ==============

The Roman Catholic Church of the Diocese of Spokane filed for
chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on
Dec. 6, 2004.  Michael J. Paukert, Esq., at Paine, Hamblen,
Coffin, Brooke & Miller, LLP, represents the Spokane Diocese
in its restructuring efforts.  When the Debtor filed for
protection from its creditors, it listed $11,162,938 in total
assets and $81,364,055 in total debts. (Catholic Church Bankruptcy
News, Issue No. 22; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


CATHOLIC CHURCH: Spokane's January 2005 Monthly Operating Report
----------------------------------------------------------------
A full-text copy of the Diocese of Spokane's January 2005 monthly
operating report is available for free at:

      http://bankrupt.com/misc/spokane_january_MOR.pdf


                   Catholic Diocese of Spokane
                         Balance Sheet
                      As of January 31, 2005

ASSETS
   Total Cash Accounts                               $3,760,689
   Total Investments                                  3,909,153
   Total Property                                       495,004
   Total Loans Receivable                             3,264,711
   Total Interfund Loan Receivable                      396,887
   Total Accounts Receivable                             90,110
   Total Land and Buildings & Equip                   2,272,137
   Total Prepaid Expenses                                 1,840
                                                 --------------
Total Assets                                        $14,190,530
                                                 ==============

LIABILITIES AND NET ASSETS

Liabilities
   Total Deposits Payable                             5,266,507
   Total Interest Payable                                16,914
   Total Accounts Payable                                 3,177

Net Assets
   Total Unrestricted - Fund Balance                 (3,202,484)
   Total Unrestricted Net Assets                     (3,202,484)
   T.R. - Guse Grant Funds                              175,676
   T.R. - Bishop's School Grants Funds                  (88,980)
   Total Replacement Fund                             9,161,397
   Total Diocesan D&L Funding                         2,176,115
   Total Guatemala Funds                                616,244
   Temporarily Restricted                               152,660
                                                 --------------
Total liabilities & net assets                      $14,190,530
                                                 ==============


                   Catholic Diocese of Spokane
                   Income and Expense Statement
               For the period January 1 to 31, 2005

Total Income                                           $190,405
Total Expenses                                          268,534
                                                 --------------
Net Excess or Deficit                                   $78,129
                                                 ==============


                   Catholic Diocese of Spokane
           Statement of Cash Receipts and Disbursements
               For the period January 1 to 31, 2005

Total Cash Receipts                                    $192,073
Total Cash Disbursements                              ($343,435)
                                                 ==============

The Roman Catholic Church of the Diocese of Spokane filed for
chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on
Dec. 6, 2004.  Michael J. Paukert, Esq., at Paine, Hamblen,
Coffin, Brooke & Miller, LLP, represents the Spokane Diocese
in its restructuring efforts.  When the Debtor filed for
protection from its creditors, it listed $11,162,938 in total
assets and $81,364,055 in total debts. (Catholic Church Bankruptcy
News, Issue No. 22; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


COVANTA WTE: Earns $182,576 of Net Income in January 2005
---------------------------------------------------------
The Remaining WTE Debtors are:

      -- Covanta Warren Energy Resource Co., L.P.,
      -- Covanta Warren Holdings I, Inc., and
      -- Covanta Warren Holdings II, Inc.

                           WTE Debtors
                    Consolidated Balance Sheet
                      As of January 31, 2005

                              ASSETS

Cash                                                   $894,587
Inventory                                                     -
Accounts receivable                                  11,926,446
Land                                                          -
Machinery, fixtures and equipment                    46,979,418
Restricted funds                                        263,084
Other current assets                                    189,199
Other assets                                            109,080
                                                   ------------
Total assets                                        $60,361,814
                                                   ============

               LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                  $7,418,059
Accounts payable and other liabilities                2,213,946
                                                   ------------
Total postpetition liabilities                        9,632,005

Prepetition Liabilities:
Project Debt                                         18,879,111
Advances from parent and affiliates                  26,235,087
Liabilities Subject to Compromise                     1,827,466
Taxes/Others                                                  -
                                                   ------------
Total Prepetition Liabilities                        46,942,664
                                                   ------------

Equity:
Capital stock                                                 -
Capital surplus                                               -
Retained earnings - prepetition                       8,343,700
Retained earnings - postpetition                     (4,556,555)
                                                   ------------
Total Equity                                          3,878,145
                                                   ------------
Total Liabilities and Equity                        $60,361,814
                                                   ============

                           WTE Debtors
              Consolidated Statements of Operations
                From January 1 to January 31, 2005

INCOME:
Service, electric and construction revenue             $774,196
Waste-to-Energy project debt revenue                    400,562
                                                   ------------
   Total Income                                       1,174,758

EXPENSES:
Operating and construction costs                        619,179
Waste-to-Energy project debt expense                    103,253
Depreciation and amortization expense                   189,750
Other - Net                                                   -
Cost allocations from parent & affiliates                80,000
Gain on sale of businesses                                    -
                                                   ------------
   Total Expenses                                       992,182
                                                   ------------
NET OPERATING PROFIT/(LOSS)                             182,576

Non-Operating Income/(Expense)
Reorganization costs                                          -
                                                   ------------
Total Non-Operating Income (Expense)                          -
Income Taxes                                                  -
Income before cumulative effect of accounting
     Change                                             182,576
                                                   ------------
NET INCOME                                             $182,576
                                                   ============

                           WTE Debtors
                Consolidated Cash Flow Statements
                From January 1 to January 31, 2005

Net income                                             $182,576
Depreciation and amortization                           189,750
Receivables                                             (34,670)
Other assets                                            (10,626)
Payables and accrued expenses                           (82,953)
Other liabilities                                         1,083
Property, plant and equipment expenditures             (153,679)
Restricted funds, net                                   (19,321)
(Repayments) issuance of debt, net                            -
Advances from parents & affiliates                       44,858
                                                   ------------
                                                        117,018

Cash, beginning balance                                 777,569
                                                   ------------
Cash, ending balance                                   $894,587
                                                   ============

Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad.  The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton, represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities.  On March 10, 2004, Covanta Energy
Corporation and its core subsidiaries emerged from chapter 11 as a
wholly owned subsidiary of Danielson Holding Corporation.  Some of
Covanta's non-core subsidiaries have liquidated under separate
chapter 11 plans. (Covanta Bankruptcy News, Issue No. 75;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


FRIEDMAN'S INC: Files Reports for Two Weeks Ended Jan. 29, 2005
---------------------------------------------------------------
On March 18, 2005, Friedman's Inc. and its debtor-affiliates filed
their consolidated monthly operating reports for the period
January 14, 2005, through January 29, 2005, with the U.S.
Bankruptcy Court for the Southern District of Georgia.

At Jan. 29, 2005, Friedman's Inc. and its debtor-affiliates'
financial reports show:

      Beginning Cash Balance                 ($2,319,376)
      Total Cash Receipts                     17,728,569
      Total Cash Disbursements                 3,438,240
      Ending Cash Balance                    $11,970,953

A full-text copy of Friedman's Inc. and its debtor-affiliates'
Monthly Operating Reports for the period ended Jan. 29, 2005, are
available at no charge at:


http://www.sec.gov/Archives/edgar/data/911004/000095017205000859/gencorpad99-1.txt

Headquartered in Savannah, Georgia, Friedman's Inc. --
http://www.friedmans.com/-- is the parent company of a group of
companies that operate fine jewelry stores located in strip
centers and regional malls in the southeastern United States.  The
Company and its affiliates filed for chapter 11 protection on
Jan. 14, 2005 (Bankr. S.D. Ga. Case No. 05-40129). John W. Butler,
Jr., Esq., George N. Panagakis, Esq., Timothy P. Olson, Esq., and
Alexa N. Paliwal, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP represent the Debtors in their restructuring efforts.  When
the Debtors filed for protection from their creditors, they listed
$395,897,000 in total assets and $215,751,000 in total debts.


FRIEDMAN'S INC: Files Reports for Four Weeks Ended Feb. 26, 2005
----------------------------------------------------------------
On March 30, 2005, Friedman's Inc. and its debtor-affiliates filed
their consolidated monthly operating reports for the period
January 30, 2005 through February 26, 2005 with the U.S.
Bankruptcy Court for the Southern District of Georgia.

At Feb. 26, 2005, Friedman's Inc. and its debtor-affiliates'
financial reports shows:

      Beginning Cash Balance                 $11,970,553
      Total Cash Receipts                     24,141,266
      Total Cash Disbursements                26,811,113
      Ending Cash Balance                     $9,300,706

A full-text copy of Friedman's Inc. and its debtor-affiliates'
Monthly Operating Reports for the period ended Feb. 26, 2005, is
available at no charge at:


http://www.sec.gov/Archives/edgar/data/911004/000095017205001008/friedmans99.txt

Headquartered in Savannah, Georgia, Friedman's Inc. --
http://www.friedmans.com/-- is the parent company of a group of
companies that operate fine jewelry stores located in strip
centers and regional malls in the southeastern United States.  The
Company and its affiliates filed for chapter 11 protection on
Jan. 14, 2005 (Bankr. S.D. Ga. Case No. 05-40129). John W. Butler,
Jr., Esq., George N. Panagakis, Esq., Timothy P. Olson, Esq., and
Alexa N. Paliwal, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP represent the Debtors in their restructuring efforts.  When
the Debtors filed for protection from their creditors, they listed
$395,897,000 in total assets and $215,751,000 in total debts.


INTERSTATE BAKERIES: Files Financial Statements Ending Feb. 5
-------------------------------------------------------------

           Interstate Bakeries Corporation and Subsidiaries
            Unaudited Consolidated Monthly Operating Report
                   Four Weeks Ended February 5, 2005

REVENUE

Gross Income                                       $258,730,476
Less Cost of Goods Sold
    Ingredients, Packaging, & Outside Purchasing     61,757,466
    Direct & Indirect Labor                          48,362,773
    Overhead & Production Administration             13,535,268
                                                   ------------
    Total Cost of Goods Sold                        123,655,507
                                                   ------------
       Gross Profit                                $135,074,969
                                                   ------------

OPERATING EXPENSES

Owner-Draws/Salaries                                          -
Selling & Delivery Employee Salaries                $65,488,233
Advertising and Marketing                             1,914,722
Insurance (Property, Casualty, & Medical)            14,599,425
Payroll Taxes                                         5,190,533
Lease and Rent                                        4,548,878
Telephone and Utilities                               2,303,163
Corporate Expense (Including Salaries)                7,500,000
Other Expenses                                       30,070,446
                                                   ------------
    Total Operating Expenses                       $131,615,400
                                                   ------------
EBITDA                                               $3,459,569

Restructuring Charges                                  (849,324)
Reorganization Expenses                               4,523,658
Depreciation and Amortization                         6,867,369
Other Income                                             (2,199)
Interest Expense                                      3,148,853
                                                   ------------
Operating Income (Loss)                             (10,228,788)
Income Tax Expense (Benefit)                         (2,471,386)
                                                   ------------
Net Income (Loss)                                   ($7,757,402)
                                                   ============

CURRENT ASSETS
    Accounts Receivable at end of period           $177,247,780
    Increase (Decrease) in Accounts Receivable        2,342,375
    Inventory at end of period                       69,279,174
    Increase (Decrease) in Inventory for period      (2,977,390)
    Cash at end of period                            96,277,992
    Increase (Decrease) in Cash for period            6,182,184

LIABILITIES
    Increase (Decrease) in Liabilities
       Not Subject to Compromise                      5,210,625
    Increase (Decrease) in Liabilities
       Subject to Compromise                          1,551,860
    Taxes payable:
       Federal Payroll Taxes                         11,916,503
       State/Local Payroll Taxes                      5,395,006
       State Sales Taxes                                705,792
       Real Estate and Personal Property Taxes       11,858,497
       Other                                          6,605,276
                                                   ------------
       Total Taxes Payable                          $36,481,075
                                                   ------------

The Company and seven of its debtor-affiliates filed for chapter
11 protection on September 22, 2004 (Bankr. W.D. Mo. Case No.
04-45814). J. Eric Ivester, Esq., and Samuel S. Ory, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in
their restructuring efforts.  When the Debtors filed for
protection from their creditors, they listed $1,626,425,000 in
total assets and $1,321,713,000 (excluding the $100,000,000 issue
of 6.0% senior subordinated convertible notes due August 15, 2014,
on August 12, 2004) in total debts.  (Interstate Bakeries
Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service,
Inc., 215/945-7000)


PG&E NATIONAL: ESV's July 2004 Monthly Operating Report
-------------------------------------------------------

                  Energy Service Ventures, Inc.
                          Balance Sheet
                       As of July 31, 2004

ASSETS

Current Assets
    Cash                                             $1,894,246
    Prepetition Accounts Receivable                   3,575,924
    Postpetition Accounts Receivable                          -
    Receivables from Officers/Employees/Affiliates            -
    Notes Receivable Stocks                                   -
    Inventory                                                 -
    Other Current Assets
       Allowance for Bad Debts                       (2,791,840)
       Deposits                                               -
       Current Tax Assets                                     -
                                                   ------------
Total Current Assets                                 $2,678,330

Fixed Assets
    Land                                                      -
    Building                                                  -
    Equipment, Furniture & Fixtures                           -
    Less Accumulated Depreciation                             -
                                                   ------------
Total Fixed Assets                                            -

Other Assets (Identify)
    Amortizable Costs                                         -
    Deferred Tax Assets                            Undetermined
    Investments in Subsidiaries                               -
                                                   ------------
Total Other Assets                                            -
                                                   ------------
TOTAL ASSETS                                       Undetermined
                                                   ============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                    $14,928
    Notes Payable                                             -
    Rent and Leases Payable                                   -
    Accrued Interest                                          -
    Other                                                     -
                                                   ------------
Total Postpetition Liabilities                           14,928

Prepetition Liabilities
    Priority Claims                                           -
    Secured Debts                                             -
    Unsecured Debts                                Undetermined
                                                   ------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owners' Investments                    10,000
    Paid-In Capital Surplus                          55,048,465
    Retained Earnings
       Prepetition                                  (76,394,062)
       Postpetition                                     (53,453)
                                                   ------------
Total Owner's Equity                               ($21,389,049)
                                                   ------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                   ============

                  Energy Service Ventures, Inc.
                         Income Statement
             For the Period July 1 to July 31, 2004

Total Sales/Income                                            -

COST OF SALES:
    Purchases of Inventory                                    -
    Purchased Services                                        -
    Other                                                     -
                                                   ------------
Total Cost of Sales                                           -
                                                   ------------
Gross Profit                                                  -

OPERATING EXPENSES:
    Officer Salaries                                          -
    Other Employee Salaries                                   -
    Taxes (Payroll)                                           -
    Employee Benefits                                         -
    Advertising                                               -
    Auto. Expenses                                            -
    Entertainment                                             -
    Insurance (Real Estate)                                   -
    Insurance (Other)                                         -
    Leases (Other than Rent)                                  -
    Outside Services & Contractors                            -
    Professional Fees (Atty. Accts.)                          -
    Rents                                                     -
    Restructuring Expense                               ($1,165)
    Repairs & Maintenance                                     -
    Supplies                                                  -
    Taxes (Real Property)                                     -
    Taxes (Other)                                             -
    Telephone                                                 -
    Travel                                                    -
    Utilities                                                 -
    Other Operating Expenses
       Power costs                                            -
       Bank Fees                                              -
                                                   ------------
Total Operating Expenses                                 (1,164)
                                                   ------------
Profit/Loss from Operation                                1,164

Other Income (Expenses):
    Interest Income                                           -
    Interest Expense                                          -
    Equity Earnings                                           -
                                                   ------------
Total Other Income (Expenses)                                 -
                                                   ------------
Income Before Taxes                                       1,164
Income Taxes Expense                                        442
                                                   ------------
Net Income (Loss)                                          $722
                                                   ============

                  Energy Service Ventures, Inc.
                    Cash Reconciliation Report
             For the Period July 1 to July 31, 2004

Cash balance from prior balance sheet                $1,893,082
Net income for month                                        722

Expense Not Requiring Cash:
    Taxes                                                   442
    Interest Income                                           -
                                                   ------------
Total Expenses Not Requiring Cash                           442
                                                   ------------
Total Cash from Operations                            1,894,246

Other sources/uses of cash:
    Decrease (Increase):
       Accounts Receivable                                    -
       Inventory                                              -
       Equipment                                              -
       Furniture & Fixtures                                   -
       Prepaids                                               -
    Increase (Decrease):
       Accounts Payable                                       -
       Accrued Interest                                       -
       Accrued P/R Taxes                                      -
       Accrued Professional Fees                              -
       Accrued Rent                                           -
       Accrued Salaries                                       -
       Accrued Sales Tax                                      -
       Note Payable Taxes                                     -
    (Less) Unrecorded Bank Service Charges                    -
                                                   ------------
Total Other Sources & Uses of Cash                            -
                                                   ------------
Ending Cash Balance                                  $1,894,246
                                                   ============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ESV's August 2004 Monthly Operating Report
---------------------------------------------------------

                  Energy Service Ventures, Inc.
                          Balance Sheet
                      As of August 31, 2004

ASSETS

Current Assets
    Cash                                             $1,895,804
    Prepetition Accounts Receivable                   3,575,924
    Postpetition Accounts Receivable                          -
    Receivables from Officers/Employees/Affiliates            -
    Notes Receivable Stocks                                   -
    Inventory                                                 -
    Other Current Assets
       Allowance for Bad Debts                       (2,791,840)
       Deposits                                               -
       Current Tax Assets                                     -
                                                   ------------
Total Current Assets                                 $2,679,888

Fixed Assets
    Land                                                      -
    Building                                                  -
    Equipment, Furniture & Fixtures                           -
    Less Accumulated Depreciation                             -
                                                   ------------
Total Fixed Assets                                            -

Other Assets (Identify)
    Amortizable Costs                                         -
    Deferred Tax Assets                            Undetermined
    Investments in Subsidiaries                               -
                                                   ------------
Total Other Assets                                            -
                                                   ------------
TOTAL ASSETS                                       Undetermined
                                                   ============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                    $14,928
    Notes Payable                                             -
    Rent and Leases Payable                                   -
    Accrued Interest                                          -
    Other                                                     -
                                                   ------------
Total Postpetition Liabilities                           14,928

Prepetition Liabilities
    Priority Claims                                           -
    Secured Debts                                             -
    Unsecured Debts                                Undetermined
                                                   ------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owners' Investments                    10,000
    Paid-In Capital Surplus                          55,048,465
    Retained Earnings
       Prepetition                                  (76,394,062)
       Postpetition                                     (52,487)
                                                   ------------
Total Owner's Equity                               ($21,388,083)
                                                   ------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                   ============

                  Energy Service Ventures, Inc.
                         Income Statement
            For the Period August 1 to August 31, 2004

Total Sales/Income                                            -

COST OF SALES:
    Purchases of Inventory                                    -
    Purchased Services                                        -
    Other                                                     -
                                                   ------------
Total Cost of Sales                                           -
                                                   ------------
Gross Profit                                                  -

OPERATING EXPENSES:
    Officer Salaries                                          -
    Other Employee Salaries                                   -
    Taxes (Payroll)                                           -
    Employee Benefits                                         -
    Advertising                                               -
    Auto. Expenses                                            -
    Entertainment                                             -
    Insurance (Real Estate)                                   -
    Insurance (Other)                                         -
    Leases (Other than Rent)                                  -
    Outside Services & Contractors                            -
    Professional Fees (Atty. Accts.)                          -
    Rents                                                     -
    Restructuring Expense                               ($1,558)
    Repairs & Maintenance                                     -
    Supplies                                                  -
    Taxes (Real Property)                                     -
    Taxes (Other)                                             -
    Telephone                                                 -
    Travel                                                    -
    Utilities                                                 -
    Other Operating Expenses
       Power costs                                            -
       Bank Fees                                              -
                                                   ------------
Total Operating Expenses                                 (1,557)
                                                   ------------
Profit/Loss from Operation                                1,557

Other Income (Expenses):
    Interest Income                                           -
    Interest Expense                                          -
    Equity Earnings                                           -
                                                   ------------
Total Other Income (Expenses)                                 -
                                                   ------------
Income Before Taxes                                       1,557
Income Taxes Expense                                        591
                                                   ------------
Net Income (Loss)                                          $965
                                                   ============

                  Energy Service Ventures, Inc.
                    Cash Reconciliation Report
            For the Period August 1 to August 31, 2004

Cash balance from prior balance sheet                $1,894,246
Net income for month                                        965

Expense Not Requiring Cash:
    Taxes                                                   591
    Interest Income                                           -
                                                   ------------
Total Expenses Not Requiring Cash                           591
                                                   ------------
Total Cash from Operations                            1,895,804

Other sources/uses of cash:
    Decrease (Increase):
       Accounts Receivable                                    -
       Inventory                                              -
       Equipment                                              -
       Furniture & Fixtures                                   -
       Prepaids                                               -
    Increase (Decrease):
       Accounts Payable                                       -
       Accrued Interest                                       -
       Accrued P/R Taxes                                      -
       Accrued Professional Fees                              -
       Accrued Rent                                           -
       Accrued Salaries                                       -
       Accrued Sales Tax                                      -
       Note Payable Taxes                                     -
    (Less) Unrecorded Bank Service Charges                    -
                                                   ------------
Total Other Sources & Uses of Cash                            -
                                                   ------------
Ending Cash Balance                                  $1,895,804
                                                   ============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ESV's September 2004 Monthly Operating Report
------------------------------------------------------------

                  Energy Service Ventures, Inc.
                          Balance Sheet
                    As of September 30, 2004

ASSETS

Current Assets
    Cash                                             $1,897,529
    Prepetition Accounts Receivable                   3,575,924
    Postpetition Accounts Receivable                          -
    Receivables from Officers/Employees/Affiliates            -
    Notes Receivable Stocks                                   -
    Inventory                                                 -
    Other Current Assets
       Allowance for Bad Debts                       (2,791,840)
       Deposits                                               -
       Current Tax Assets                                     -
                                                   ------------
Total Current Assets                                 $2,681,613

Fixed Assets
    Land                                                      -
    Building                                                  -
    Equipment, Furniture & Fixtures                           -
    Less Accumulated Depreciation                             -
                                                   ------------
Total Fixed Assets                                            -

Other Assets (Identify)
    Amortizable Costs                                         -
    Deferred Tax Assets                            Undetermined
    Investments in Subsidiaries                               -
                                                   ------------
Total Other Assets                                            -
                                                   ------------
TOTAL ASSETS                                       Undetermined
                                                   ============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                    $14,928
    Notes Payable                                             -
    Rent and Leases Payable                                   -
    Accrued Interest                                          -
    Other                                                     -
                                                   ------------
Total Postpetition Liabilities                           14,928

Prepetition Liabilities
    Priority Claims                                           -
    Secured Debts                                             -
    Unsecured Debts                                Undetermined
                                                   ------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owners' Investments                    10,000
    Paid-In Capital Surplus                          55,048,465
    Retained Earnings
       Prepetition                                  (76,394,062)
       Postpetition                                     (52,111)
                                                   ------------
Total Owner's Equity                               ($21,387,707)
                                                   ------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                   ============


                  Energy Service Ventures, Inc.
                         Income Statement
          For the Period September 1 to September 30, 2004

Total Sales/Income                                           $0

COST OF SALES:
    Purchases of Inventory                                    0
    Purchased Services                                        0
    Other                                                     -
                                                   ------------
Total Cost of Sales                                           0
                                                   ------------
Gross Profit                                                  0

OPERATING EXPENSES:
    Officer Salaries                                          0
    Other Employee Salaries                                   0
    Taxes (Payroll)                                           0
    Employee Benefits                                     1,118
    Advertising                                               0
    Auto. Expenses                                            0
    Entertainment                                             0
    Insurance (Real Estate)                                   0
    Insurance (Other)                                         0
    Leases (Other than Rent)                                  0
    Outside Services & Contractors                            0
    Professional Fees (Atty. Accts.)                          0
    Rents                                                     0
    Restructuring Expense                               ($1,725)
    Repairs & Maintenance                                     0
    Supplies                                                  0
    Taxes (Real Property)                                     0
    Taxes (Other)                                             0
    Telephone                                                 0
    Travel                                                    0
    Utilities                                                 0
    Other Operating Expenses
       Power costs                                            -
       Bank Fees                                              -
                                                   ------------
Total Operating Expenses                                   (606)
                                                   ------------
Profit/Loss from Operation                                 (606)

Other Income (Expenses):
    Interest Income                                           -
    Interest Expense                                          -
    Equity Earnings                                           -
                                                   ------------
Total Other Income (Expenses)                                 -
                                                   ------------
Income Before Taxes                                         606
Income Taxes Expense                                        230
                                                   ------------
Net Income (Loss)                                          $376
                                                   ============


                  Energy Service Ventures, Inc.
                    Cash Reconciliation Report
          For the Period September 1 to September 30, 2004

Cash balance from prior balance sheet                $1,895,804
Net income for month                                        376

Expense Not Requiring Cash:
    Taxes                                                   230
    Interest Income                                           -
                                                   ------------
Total Expenses Not Requiring Cash                           230
                                                   ------------
Total Cash from Operations                            1,896,411

Other sources/uses of cash:
    Decrease (Increase):
       Accounts Receivable                                1,118
       Inventory                                              -
       Equipment                                              -
       Furniture & Fixtures                                   -
       Prepaids                                               -
    Increase (Decrease):
       Accounts Payable                                       -
       Accrued Interest                                       -
       Accrued P/R Taxes                                      -
       Accrued Professional Fees                              -
       Accrued Rent                                           -
       Accrued Salaries                                       -
       Accrued Sales Tax                                      -
       Note Payable Taxes                                     -
    (Less) Unrecorded Bank Service Charges                    -
                                                   ------------
Total Other Sources & Uses of Cash                        1,118
                                                   ------------
Ending Cash Balance                                  $1,897,529
                                                   ============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: Quantum's August 2004 Monthly Operating Report
-------------------------------------------------------------

                         Quantum Ventures
                          Balance Sheet
                      As of August 31, 2004

ASSETS

Current Assets
    Cash                                                      -
    Prepetition Accounts Receivable                           -
    Postpetition Accounts Receivable                          -
    Receivables from Officers/Employees/Affiliates            -
    Notes Receivable Stocks                                   -
    Inventory                                                 -
    Other Current Assets
       Prepaid Expenses                                       -
       Deposits                                               -
       Current Tax Assets                          Undetermined
                                                   ------------
Total Current Assets                               Undetermined

Fixed Assets
    Land                                                      -
    Building                                                  -
    Equipment, Furniture & Fixtures                           -
    Less Accumulated Depreciation                             -
                                                   ------------
Total Fixed Assets                                            -

Other Assets (Identify)
    Amortizable Costs                                         -
    Deferred Tax Assets                                       -
    Investments in Subsidiaries                    ($21,223,185)
                                                   ------------
Total Other Assets                                 ($21,223,185)
                                                   ------------
TOTAL ASSETS                                       Undetermined
                                                   ============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          -
    Notes Payable                                             -
    Rent and Leases Payable                                   -
    Accrued Interest                                          -
    Other                                                     -
                                                   ------------
Total Postpetition Liabilities                                -

Prepetition Liabilities
    Priority Claims                                           -
    Secured Debts                                             -
    Unsecured Debts                                Undetermined
                                                   ------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owners' Investments                      $100
    Paid-In Capital Surplus                         233,222,604
    Retained Earnings
       Prepetition                                 (254,177,934)
       Postpetition                                           -
                                                   ------------
Total Owner's Equity                               ($20,955,230)
                                                   ------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                   ============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: Quantum's September 2004 Monthly Operating Report
----------------------------------------------------------------

                         Quantum Ventures
                          Balance Sheet
                      As of September 30, 2004

ASSETS

Current Assets
    Cash                                                      -
    Prepetition Accounts Receivable                           -
    Postpetition Accounts Receivable                          -
    Receivables from Officers/
        Employees/Affiliates                                  -
    Notes Receivable Stocks                                   -
    Inventory                                                 -
    Other Current Assets
       Prepaid Expenses                                       -
       Deposits                                               -
       Current Tax Assets                          Undetermined
                                                   ------------
Total Current Assets                               Undetermined

Fixed Assets
    Land                                                      -
    Building                                                  -
    Equipment, Furniture & Fixtures                           -
    Less Accumulated Depreciation                             -
                                                   ------------
Total Fixed Assets                                            -

Other Assets (Identify)
    Amortizable Costs                                         -
    Deferred Tax Assets                                       -
    Investments in Subsidiaries                    ($21,223,185)
                                                   ------------
Total Other Assets                                 ($21,223,185)
                                                   ------------
TOTAL ASSETS                                       Undetermined
                                                   ============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          -
    Notes Payable                                             -
    Rent and Leases Payable                                   -
    Accrued Interest                                          -
    Other                                                     -
                                                   ------------
Total Postpetition Liabilities                                -

Prepetition Liabilities
    Priority Claims                                           -
    Secured Debts                                             -
    Unsecured Debts                                Undetermined
                                                   ------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owners' Investments                      $100
    Paid-In Capital Surplus                         233,222,604
    Retained Earnings
       Prepetition                                 (254,177,934)
       Postpetition                                           -
                                                   ------------
Total Owner's Equity                               ($20,955,230)
                                                   ------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                   ============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Gas' September 2004 Monthly Operating Report
--------------------------------------------------------------

               NEGT Energy Trading-Gas Corporation
                     Unaudited Balance Sheet
                     As of September 30, 2004

ASSETS

Current Assets
    Cash                                             $10,493,479
    Accounts Receivable-Trade                         24,039,348
    Valuation from Unrealized Commodity Contracts   Undetermined
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets
       Deposits                                       57,975,017
       Prepayments                                    10,036,386
       Other Current Assets                            3,113,514
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       0
    Building                                                   0
    Equipment, Furniture & Fixtures                   20,899,653
    Less Accumulated Depreciation                    (20,595,761)
                                                  --------------
Total Fixed Assets                                      $303,892

Other Assets
    Accrued taxes                                   Undetermined
                                                  --------------
Total Other Assets                                  Undetermined
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          $0
    Accrued Quarterly Fees                                   250
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other:
       Accrued Legal fees                                      0
       Accrued Payroll and Benefits                       59,612
                                                  --------------
Total Postpetition Liabilities                           $59,862

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owner's Investments                          -
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings (deficit)
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============

               NEGT Energy Trading-Gas Corporation
                         Income Statement
         For the Period September 1 to September 30, 2004

Total Sales/Income                                      $622,644

COST OF SALES:
    Purchases of Inventory                                     0
    Purchased Services                                         0
    Other: (Identify)                                          0
       Purchase of Commodities                                 0
                                                  --------------
Total Cost of Sales                                            0
                                                  --------------
Gross Profit                                             622,644

OPERATING EXPENSES:
    Bad Debt Expense                                           0
    Bank Charges                                             512
    Communications                                           181
    Computer Supplies                                          0
    Credit & Commitment Fees                                   0
    Datafeeds                                                  0
    Fixed Assets Depreciation                            102,497
    Indirect Allocations                                  53,607
    Insurance                                             20,450
    Legal Fees                                           375,000
    Recruiting & Relocation                                    0
    Realized(Gain)/Loss on Foreign Exchange               (4,274)
    Rent                                                   4,672
    Unrealized(Gain)/Loss on Foreign Exchange                  0
    Office Supplies                                            0
    Other                                                  5,627
    Payroll and benefits                                  46,080
    Professional Fees                                      8,063
    Software Costs                                         4,950
    Subscriptions                                              0
    Taxes Other than Income                                  488
    Training                                                   0
                                                  --------------
Total Operating Expenses                                 617,856
                                                  --------------
Profit/Loss from Operation                                 4,788

Other Income (Expenses):
    Interest Income                                      399,786
    Interest Expense                                           0
    Equity in Subsidiaries                                     0
    Other Income(Expenses)                               (51,422)
                                                  --------------
Total Other Income (Expenses)                            348,364
                                                  --------------
Income Before Taxes                                     $353,152

Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
NET INCOME                                          Undetermined
                                                  ==============


               NEGT Energy Trading-Gas Corporation
                    Cash Reconciliation Report
         For the Period September 1 to September 30, 2004

Cash balance from prior balance sheet                $10,482,611
Pre-tax Net income for month                             353,152

Income/Expenses Not Requiring Cash:
    Depreciation                                         102,497
    (Gain) Loss on the Sale of Fixed Assets               51,422
    Unrealized (Gain) Loss on Foreign Exchange                 0
    Relief of Allowance for Doubtful Accts                     0
                                                  --------------
Total Expenses Not Requiring Cash                        153,919
                                                  --------------
Total Cash from Operations                            10,989,683

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate                     600
       Accounts Receivable Affiliate                     494,047
       Inventory                                               0
       Equipment                                           5,000
       Furniture & Fixtures                                    0
       Prepaids                                                0
       Deposits                                                0
       Other Current Assets                                    0
    Increase (Decr):
       Accounts Payable Non-Affiliate                       (160)
       Accounts Payable Affiliate                       (718,876)
       Accrued Liabilities                                     0
       Current Deferred Liabilities                            0
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
       Tax Liability                                    (276,815)
                                                  --------------
Total Other Sources & Uses of Cash                      (496,203)
                                                  --------------
ENDING CASH BALANCE                                  $10,493,479
                                                  ==============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Gas' October 2004 Monthly Operating Report
------------------------------------------------------------

               NEGT Energy Trading-Gas Corporation
                     Unaudited Balance Sheet
                     As of October 31, 2004

ASSETS

Current Assets
    Cash                                             $10,515,217
    Accounts Receivable-Trade                         24,039,987
    Valuation from Unrealized Commodity Contracts   Undetermined
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets
       Deposits                                       56,737,059
       Prepayments                                    10,036,386
       Other Current Assets                            3,113,514
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       0
    Building                                                   0
    Equipment, Furniture & Fixtures                   20,899,653
    Less Accumulated Depreciation                    (20,697,046)
                                                  --------------
Total Fixed Assets                                      $202,607

Other Assets
    Accrued taxes                                   Undetermined
                                                  --------------
Total Other Assets                                  Undetermined
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          $0
    Accrued Quarterly Fees                                   250
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other:
       Accrued Legal fees                                      0
       Accrued Payroll and Benefits                       35,672
                                                  --------------
Total Postpetition Liabilities                           $35,922

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owner's Investments                          -
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings (deficit)
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============

               NEGT Energy Trading-Gas Corporation
                         Income Statement
          For the Period October 1 to October 31, 2004

Total Sales/Income                                            $0

COST OF SALES:
    Purchases of Inventory                                     0
    Purchased Services                                         0
    Other: (Identify)                                          0
       Purchase of Commodities                              (639)
                                                  --------------
Total Cost of Sales                                         (639)
                                                  --------------
Gross Profit                                                 639

OPERATING EXPENSES:
    Bad Debt Expense                                           0
    Bank Charges                                           1,131
    Communications                                            38
    Computer Supplies                                          0
    Credit & Commitment Fees                                   0
    Datafeeds                                                  0
    Fixed Assets Depreciation                            101,284
    Indirect Allocations                                       0
    Insurance                                                  0
    Legal Fees                                           375,000
    Recruiting & Relocation                                    0
    Realized(Gain)/Loss on Foreign Exchange               (4,875)
    Rent                                                       0
    Unrealized(Gain)/Loss on Foreign Exchange                  0
    Office Supplies                                            0
    Other                                                 23,049
    Payroll and benefits                                   6,089
    Professional Fees                                      6,193
    Software Costs                                             0
    Subscriptions                                              0
    Taxes Other than Income                                    0
    Training                                                   0
                                                  --------------
Total Operating Expenses                                 507,912
                                                  --------------
Profit/Loss from Operation                              (507,273)

Other Income (Expenses):
    Interest Income                                      452,007
    Interest Expense                                           0
    Equity in Subsidiaries                                     0
    Other Income(Expenses)                                     0
                                                  --------------
Total Other Income (Expenses)                            452,007
                                                  --------------
Income Before Taxes                                      $55,265

Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
NET INCOME                                          Undetermined
                                                  ==============


               NEGT Energy Trading-Gas Corporation
                    Cash Reconciliation Report
          For the Period October 1 to October 31, 2004

Cash balance from prior balance sheet                $10,493,479
Pre-tax Net income for month                              55,265

Income/Expenses Not Requiring Cash:
    Depreciation                                         101,284
    (Gain) Loss on the Sale of Fixed Assets                    0
    Unrealized (Gain) Loss on Foreign Exchange                 0
    Reversal of Income Tax Liability                 (41,615,224)
    Relief of Allowance for Doubtful Accts                     0
                                                  --------------
Total Expenses Not Requiring Cash                    (41,513,939)
                                                  --------------
Total Cash from Operations                           (31,075,725)

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate                    (639)
       Accounts Receivable Affiliate                  18,014,000
       Inventory                                               0
       Equipment                                               0
       Furniture & Fixtures                                    0
       Prepaids                                                0
       Deposits                                        1,237,957
       Other Current Assets                                    0
    Increase (Decr):
       Accounts Payable Non-Affiliate                     91,689
       Accounts Payable Affiliate                     (1,353,289)
       Accrued Liabilities                                     0
       Current Deferred Liabilities                            0
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
       Tax Liability                                  23,601,224
                                                  --------------
Total Other Sources & Uses of Cash                    41,590,943
                                                  --------------
ENDING CASH BALANCE                                  $10,515,217
                                                  ==============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Investments' September 2004 Operating Report
--------------------------------------------------------------

                  NEGT ET Investments Corporation
                      Unaudited Balance Sheet
                     As of September 30, 2004

ASSETS

Current Assets
    Cash                                                     $0
    Accounts Receivable                                       0
    Receivables from Officers/
        Employees/Affiliates                       Undetermined
    Notes Receivable Stocks                                   0
    Inventory                                                 0
    Other Current Assets                                      -
                                                   ------------
Total Current Assets                               Undetermined

Fixed Assets
    Land                                                      0
    Building                                                  0
    Equipment, Furniture & Fixtures                           0
    Less Accumulated Depreciation                             0
                                                   ------------
Total Fixed Assets                                           $0

Other Assets
    Investment in Subsidiaries                     Undetermined
                                                   ------------
Total Other Assets                                 Undetermined
                                                   ------------
TOTAL ASSETS                                       Undetermined
                                                   ============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                         $0
    Accrued Quarterly Fees                                  250
    Notes Payable                                             0
    Rent and Leases Payable                                   0
    Taxes Payable                                             0
    Accrued Interest                                          0
    Other                                                     0
                                                   ------------
Total Postpetition Liabilities                             $250

Prepetition Liabilities
    Priority Claims                                Undetermined
    Secured Debts                                  Undetermined
    Unsecured Debts                                Undetermined
                                                   ------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
    Capital Stock, Owner's Investments             Undetermined
    Paid-In Capital Surplus                        Undetermined
    Retained Earnings (deficit)
       Prepetition                                 Undetermined
       Postpetition                                Undetermined
                                                   ------------
Total Owner's Equity                               Undetermined
                                                   ------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                   ============


                  NEGT ET Investments Corporation
                         Income Statement
         For the Period September 1 to September 30, 2004

Total Sales/Income                                           $0

COST OF SALES:
    Purchases of Inventory                                    0
    Purchased Services                                        0
    Other (Identify)                                          0
                                                   ------------
Total Cost of Sales                                           0
                                                   ------------
Gross Profit                                                  0

OPERATING EXPENSES:
    Bad Debt Expense                                          0
    Officer Salaries                                          -
    Other Employee Salaries                                   -
    Taxes (Payroll)                                           -
    Employee Benefits                                         -
    Advertising                                               -
    Auto Expenses                                             -
    Entertainment                                             -
    Insurance (Real Estate)                                   -
    Insurance (Other)                                         -
    Leases (Other than Rent)                                  -
    Outside Services & Contractors                            -
    Professional Fees (Atty. Acct.)                           -
    Rent                                                      -
    Repairs & Maintenance                                     -
    Supplies                                                  -
    Taxes (Real Property)                                     -
    Taxes (Other)                                             -
    Telephone                                                 -
    Travel                                                    -
    Utilities                                                 -
    Other                                                     -
                                                   ------------
Total Operating Expenses                                      -
                                                   ------------
Profit/Loss from Operation                                    -

Other Income (Expenses):
    Interest Expense                                     (2,190)
    Equity in ET Power                              (13,068,206)
                                                   ------------
Total Other Income (Expenses)                       (13,070,396)
                                                   ------------
Income Before Taxes                                 (13,070,396)

Income Taxes Expense (Benefit)                     Undetermined
                                                   ------------
NET INCOME                                         Undetermined
                                                   ============


                  NEGT ET Investments Corporation
                     Cash Reconciliation Report
         For the Period September 1 to September 30, 2004

Cash balance from prior balance sheet                        $0
Pre-tax Net income for month                        (13,070,396)

Expense Not Requiring Cash:
    Depreciation                                              0
    Other:
       Investment in Subsidiaries                    13,068,206
       Relief of Allowance of Doubtful Accounts               0
                                                   ------------
Total Expenses Not Requiring Cash                    13,068,206
                                                   ------------
Total Cash from Operations                               (2,190)

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable                                    0
       Inventory                                              0
       Equipment                                              0
       Furniture & Fixtures                                   0
    Increase (Decr):
       Accounts Payable                                       0
       Accounts Payable - Affiliate                       2,190
       Accounts Payable - Interest Payable                    0
       Accrued Interest                                       0
       Accrued P/R Taxes                                      0
       Accrued Professional Fees                              0
       Accrued Rent                                           0
       Accrued Salaries                                       0
       Accrued Sales Tax                                      0
       Note Payable Taxes                                     0
       Taxes Payable                                          0
      (Less) Unrecorded Bank Service Charges                  0
                                                   ------------
Total Other Sources & Uses of Cash                        2,190
                                                   ------------
ENDING CASH BALANCE                                         ($0)
                                                   ============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Investments' October 2004 Operating Report
------------------------------------------------------------

                  NEGT ET Investments Corporation
                      Unaudited Balance Sheet
                      As of October 31, 2004

ASSETS

Current Assets
    Cash                                                     $0
    Accounts Receivable                                       0
    Receivables from Officers/
         Employees/Affiliates                      Undetermined
    Notes Receivable Stocks                                   0
    Inventory                                                 0
    Other Current Assets                                      -
                                                   ------------
Total Current Assets                               Undetermined

Fixed Assets
    Land                                                      0
    Building                                                  0
    Equipment, Furniture & Fixtures                           0
    Less Accumulated Depreciation                             0
                                                   ------------
Total Fixed Assets                                           $0

Other Assets
    Investment in Subsidiaries                     Undetermined
                                                   ------------
Total Other Assets                                 Undetermined
                                                   ------------
TOTAL ASSETS                                       Undetermined
                                                   ============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                         $0
    Accrued Quarterly Fees                                  250
    Notes Payable                                             0
    Rent and Leases Payable                                   0
    Taxes Payable                                             0
    Accrued Interest                                          0
    Other                                                     0
                                                   ------------
Total Postpetition Liabilities                             $250

Prepetition Liabilities
    Priority Claims                                Undetermined
    Secured Debts                                  Undetermined
    Unsecured Debts                                Undetermined
                                                   ------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
    Capital Stock, Owner's Investments             Undetermined
    Paid-In Capital Surplus                        Undetermined
    Retained Earnings (deficit)
       Prepetition                                 Undetermined
       Postpetition                                Undetermined
                                                   ------------
Total Owner's Equity                               Undetermined
                                                   ------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                   ============


                  NEGT ET Investments Corporation
                         Income Statement
           For the Period October 1 to October 31, 2004

Total Sales/Income                                           $0

COST OF SALES:
    Purchases of Inventory                                    0
    Purchased Services                                        0
    Other (Identify)                                          0
                                                   ------------
Total Cost of Sales                                           0
                                                   ------------
Gross Profit                                                  0

OPERATING EXPENSES:
    Bad Debt Expense                                          0
    Officer Salaries                                          -
    Other Employee Salaries                                   -
    Taxes (Payroll)                                           -
    Employee Benefits                                         -
    Advertising                                               -
    Auto Expenses                                             -
    Entertainment                                             -
    Insurance (Real Estate)                                   -
    Insurance (Other)                                         -
    Leases (Other than Rent)                                  -
    Outside Services & Contractors                            -
    Professional Fees (Atty. Acct.)                           -
    Rent                                                      -
    Repairs & Maintenance                                     -
    Supplies                                                  -
    Taxes (Real Property)                                     -
    Taxes (Other)                                             -
    Telephone                                                 -
    Travel                                                    -
    Utilities                                                 -
    Other                                                   250
                                                   ------------
Total Operating Expenses                                   (250)
                                                   ------------
Profit/Loss from Operation                                    -

Other Income (Expenses):
    Interest Expense                                     (2,614)
    Equity in ET Power                                7,592,196
                                                   ------------
Total Other Income (Expenses)                         7,589,582
                                                   ------------
Income Before Taxes                                   7,589,332

Income Taxes Expense (Benefit)                     Undetermined
                                                   ------------
NET INCOME                                         Undetermined
                                                   ============


                  NEGT ET Investments Corporation
                     Cash Reconciliation Report
           For the Period October 1 to October 31, 2004

Cash balance from prior balance sheet                        $0
Pre-tax Net income for month                          7,589,332

Expense Not Requiring Cash:
    Depreciation                                              0
    Other:
       Investment in Subsidiaries                    (7,592,196)
       Reversal of Income Tax Liability             (77,739,231)
       Relief of Allowance of Doubtful Accounts               0
                                                   ------------
Total Expenses Not Requiring Cash                   (85,331,428)
                                                   ------------
Total Cash from Operations                         ($77,742,095)

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable                                    0
       Inventory                                              0
       Equipment                                              0
       Furniture & Fixtures                                   0
    Increase (Decr):
       Accounts Payable                                       0
       Accounts Payable - Affiliate                 (65,060,135)
       Accounts Payable - Interest Payable                    0
       Accrued Interest                                       0
       Accrued P/R Taxes                                      0
       Accrued Professional Fees                              0
       Accrued Rent                                           0
       Accrued Salaries                                       0
       Accrued Sales Tax                                      0
       Note Payable Taxes                                     0
       Taxes Payable                                142,802,231
      (Less) Unrecorded Bank Service Charges                  0
                                                   ------------
Total Other Sources & Uses of Cash                   77,742,095
                                                   ------------
ENDING CASH BALANCE                                          $0
                                                   ============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Holdings' August 2004 Monthly Operating Report
----------------------------------------------------------------
NEGT Energy Trading Holdings Corporation's Monthly Operating
Report for the month ended August 31, 2004, is not yet available
as of press time.

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Holdings' Sept. 2004 Monthly Operating Report
---------------------------------------------------------------

              NEGT Energy Trading Holdings Corporation
                      Unaudited Balance Sheet
                      As of September 30, 2004

                               ASSETS

Current Assets
    Cash                                           $302,251,578
    Accounts Receivable                                 361,942
    Receivables from Officers/
       Employees/Affiliates                        Undetermined
    Notes Receivable Stocks                                   0
    Inventory                                                 0
    Other Current Assets
       Prepaids                                         617,451
       Accrued taxes                               Undetermined
                                                   ------------
Total Current Assets                               Undetermined

Fixed Assets
    Land                                                      0
    Building                                                  0
    Equipment, Furniture & Fixtures                           0
    Less Accumulated Depreciation                             0
    Other Fixed Assets                                        0
                                                   ------------
Total Fixed Assets                                           $0

Other Assets
    Investments in Subsidiaries                    Undetermined
                                                   ------------
Total Other Assets                                 Undetermined
                                                   ------------
TOTAL ASSETS                                       Undetermined
                                                   ============

                       LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                   $193,250
    Notes Payable                                             0
    Rent and Leases Payable                                   0
    Taxes Payable                                             0
    Accrued Interest                                          0
    Other:
       Accrued Quarterly Fees                             8,000
       Accrued Legal Fees                             2,538,597
       Accrued Payroll and Benefits                     162,950
                                                   ------------
Total Postpetition Liabilities                       $2,902,797

Prepetition Liabilities
    Priority Claims                                Undetermined
    Secured Debts                                  Undetermined
    Unsecured Debts                                Undetermined
                                                   ------------
Total Prepetition Liabilities                      Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owner's Investments              Undetermined
    Paid-In Capital Surplus                        Undetermined
    Retained Earnings
       Prepetition                                 Undetermined
       Postpetition                                Undetermined
                                                   ------------
Total Owner's Equity                               Undetermined
                                                   ------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY         Undetermined
                                                   ============

              NEGT Energy Trading Holdings Corporation
                     Unaudited Income Statement
          For the Period September 1 to September 30, 2004

Total Sales/Income                                           $0

COST OF SALES:
    Purchases of Inventory                                    0
    Purchased Services                                        0
    Other                                                     0
                                                   ------------
Total Cost of Sales                                           0
                                                   ------------
Gross Profit                                                  0

OPERATING EXPENSES:
    Bad Debt Expense                                          0
    Communications                                          221
    Computer Supplies                                         0
    Credit/Commitment Fees                                    0
    Datafeeds                                                 0
    Indirect Allocations                             (3,260,785)
    Insurance                                            24,995
    Legal Fees                                          375,000
    Misc. Tax Payments                                      300
    Office Supplies                                           0
    Other                                             3,066,051
    Other Business Expenses                               6,145
    Payroll and benefits                                131,370
    Postage & Delivery                                        0
    Professional Fees                                     9,854
    Recruiting & Relocation                                   0
    Rent                                                  5,710
    Software Costs                                       10,200
    Subscriptions                                             0
    Training                                                  0
    Travel                                                    0
    US Trustees                                             525
                                                   ------------
Total Operating Expenses                               $369,589
                                                   ------------
Profit/Loss from Operation                            ($369,589)

Other Income (Expenses):
    Interest Income                                     363,638
    Interest Expense                                   (456,654)
    Equity in Subsidiary:
       Investment in ET Power                          (266,698)
       Investment in ET Investment                   42,900,783
       Investment in ET Gas Corp.                     5,762,222
       Investment in NEGT International                  56,580
                                                   ------------
Total Other Income (Expenses)                        48,359,872
                                                   ------------
Income Before Taxes                                 $47,990,283

Income Taxes Expense (Benefit)                     Undetermined
                                                   ------------
NET INCOME                                         Undetermined
                                                   ============

             NEGT Energy Trading Holdings Corporation
                     Cash Reconciliation Report
          For the Period September 1 to September 30, 2004

Cash balance from prior balance sheet              $302,733,316
Pre-tax Net income for month                         47,990,283

Expense Not Requiring Cash:
    Depreciation                                              0
    Investment in ET Power                              266,698
    Investment in ET Investment                     (42,900,783)
    Investment in ET Gas Corp.                       (5,762,222)
    Investment in NEGT International                    (56,580)
    Relief of Allowance of Doubtful Accounts                  0
                                                   ------------
Total Expenses Not Requiring Cash                   (48,452,888)
                                                   ------------
Total Cash from Operations                          302,270,710

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate                (34,455)
       Accounts Receivable Affiliate                  3,536,289
       Inventory                                              0
       Equipment                                              0
       Furniture & Fixtures                                   0
       Prepaids                                           4,150
    Increase (Decr):
       Accounts Payable - Non-Affiliate                 148,662
       Accounts Payable - Affiliate                  (3,562,042)
       Accrued Liabilities                             (111,738)
       Accrued Interest                                       0
       Accrued P/R Taxes                                      0
       Accrued Professional Fees                              0
       Accrued Salaries                                       0
       Accrued Sales Tax                                      0
       Note Payable Taxes                                     0
       Tax Liability                                          0
       (Less) Unrecorded Bank Service Charges                 0
                                                   ------------
Total Other Sources & Uses of Cash                     ($19,132)
                                                   ------------
ENDING CASH BALANCE                                $302,251,578
                                                   ============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Holdings' October 2004 Operating Report
---------------------------------------------------------

            NEGT Energy Trading Holdings Corporation
                    Unaudited Balance Sheet
                    As of October 31, 2004

                             ASSETS

Current Assets
    Cash                                            $316,484,629
    Accounts Receivable                                  421,836
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets
       Prepaids                                          624,492
       Accrued taxes                                Undetermined
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       0
    Building                                                   0
    Equipment, Furniture & Fixtures                            0
    Less Accumulated Depreciation                              0
    Other Fixed Assets                                         0
                                                  --------------
Total Fixed Assets                                            $0

Other Assets
    Investments in Subsidiaries                     Undetermined
                                                  --------------
Total Other Assets                                  Undetermined
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

                     LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                           0
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other:
       Accrued Quarterly Fees                              5,000
       Accrued Legal Fees                              2,395,293
       Accrued Payroll and Benefits                       97,452
                                                  --------------
Total Postpetition Liabilities                        $2,497,745

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock/Owner's Investments               Undetermined
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============

            NEGT Energy Trading Holdings Corporation
                    Unaudited Income Statement
          For the Period October 1 to October 31, 2004

Total Sales/Income                                       $79,961

COST OF SALES:
    Purchases of Inventory                                     0
    Purchased Services                                         0
    Other                                                      0
                                                  --------------
Total Cost of Sales                                            0
                                                  --------------
Gross Profit                                             $79,961

OPERATING EXPENSES:
    Bad Debt Expense                                           0
    Communications                                             0
    Computer Supplies                                          0
    Credit/Commitment Fees                                    47
    Datafeeds                                                100
    Indirect Allocations                                (433,119)
    Insurance                                                  0
    Legal Fees                                           375,000
    Misc. Tax Payments                                         0
    Office Supplies                                            0
    Other                                                 12,144
    Other Business Expenses                               27,950
    Payroll and benefits                                  49,281
    Postage & Delivery                                         0
    Professional Fees                                      7,570
    Recruiting & Relocation                                    0
    Rent                                                       0
    Software Costs                                         4,150
    Subscriptions                                              0
    Training                                                   0
    Travel                                                     0
    US Trustees                                            5,000
                                                  --------------
Total Operating Expenses                                  48,124
                                                  --------------
Profit/Loss from Operation                                31,387

Other Income (Expenses):
    Interest Income                                      424,404
    Interest Expense                                    (539,022)
    Equity in Subsidiary:
       Investment in ET Power                            154,942
       Investment in ET Investment                   (70,149,899)
       Investment in ET Gas Corp.                    (41,670,490)
       Investment in NEGT International               32,070,390
                                                  --------------
Total Other Income (Expenses)                        (79,709,674)
                                                  --------------
Income Before Taxes                                 ($79,677,837)

Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
NET INCOME                                          Undetermined
                                                  ==============

            NEGT Energy Trading Holdings Corporation
                    Cash Reconciliation Report
          For the Period October 1 to October 31, 2004

Cash balance from prior balance sheet               $302,251,578
Pre-tax Net income for month                         (79,677,837)

Expense Not Requiring Cash:
    Depreciation                                               0
    Investment in ET Power                              (154,942)
    Investment in ET Investment                       70,149,899
    Investment in ET Gas Corp.                        41,670,490
    Investment in NEGT International                 (32,070,390)
    Reversal of Income Tax Liability                 (21,047,199)
    Relief of Allowance of Doubtful Accounts                   0
                                                  --------------
Total Expenses Not Requiring Cash                     58,547,857
                                                  --------------
Total Cash from Operations                           281,121,598

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate                 (59,893)
       Accounts Receivable Affiliate                  14,892,046
       Inventory                                               0
       Equipment                                               0
       Furniture & Fixtures                                    0
       Prepaids                                           (7,040)
    Increase (Decr):
       Accounts Payable - Non-Affiliate                 (145,330)
       Accounts Payable - Affiliate                   (4,187,774)
       Accrued Liabilities                              (126,173)
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Professional Fees                               0
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
       Tax Liability                                  24,997,199
       (Less) Unrecorded Bank Service Charges                  0
                                                  --------------
Total Other Sources & Uses of Cash                    35,363,031
                                                  --------------
ENDING CASH BALANCE                                 $316,484,629
                                                  ==============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Power's Sept. 2004 Monthly Operating Report
-------------------------------------------------------------

                  NEGT Energy Trading-Power L.P.
                     Unaudited Balance Sheet
                     As of September 30, 2004

ASSETS

Current Assets
    Cash                                             $27,164,558
    Accounts Receivable                              153,396,159
    Valuation from Unrealized Commodity Contracts   Undetermined
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets
       Deposits                                       45,140,769
       Prepaids                                          699,999
       Other Current Assets                                    0
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       -
    Building                                                   -
    Equipment, Furniture & Fixtures                    2,232,631
    Less Accumulated Depreciation                     (2,127,897)
    Other Fixed Assets                                         -
                                                  --------------
Total Fixed Assets                                       104,734

Other Assets                                                   -
                                                  --------------
Total Other Assets                                            $0
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          $0
    Accrued Quarterly Fees                                   250
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other                                                      -
                                                  --------------
Total Postpetition Liabilities                              $250

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock/ Owner's Investments              Undetermined
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings (deficit)
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============


                  NEGT Energy Trading-Power L.P.
                         Income Statement
         For the Period September 1 to September 30, 2004

Total Sales/Income                                  ($10,315,409)

COST OF SALES:
    Purchases of Inventory                                     0
    Purchased Services                                         0
    Other: (Identify)                                          0
       Cost of Commodities                                (3,090)
                                                  --------------
Total Cost of Sales                                       (3,090)
                                                  --------------
Gross Profit                                         (10,312,318)

OPERATING EXPENSES:
    Bank Fee Charges                                          81
    Bad Debt Expense                                           0
    Communications                                             0
    Entertainment                                              0
    Fixed Assets Depreciation                             34,910
    Indirect Allocations                               3,326,306
    Legal Fees                                                 0
    Realized(Gain)/Loss on Foreign Exchange               (4,380)
    Unrealized(Gain)/Loss on Foreign Exchange              2,482
    Other                                                    135
    Training                                                   0
    Travel                                                     0
                                                  --------------
Total Operating Expenses                               3,359,534
                                                  --------------
Profit/Loss from Operation                           (13,671,853)

Other Income (Expenses):
    Interest Income                                      363,410
    Interest Expense                                           0
    Other Income(Expenses)                               (26,461)
                                                  --------------
Total Other Income (Expenses)                            336,948
                                                  --------------
Income Before Taxes                                 ($13,334,904)

Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
Net Income                                          Undetermined
                                                  ==============


                  NEGT Energy Trading-Power L.P.
                    Cash Reconciliation Report
         For the Period September 1 to September 30, 2004

Cash balance from prior balance sheet                $27,131,134
Pre-tax Net income for month                         (13,334,904)

Expense Not Requiring Cash:
    Depreciation                                          34,910
    (Gain) Loss on sale of fixed assets                   26,461
    Unrealized (Gain) loss on foreign exchange             2,482
    Relief of Allowance for Doubtful Accounts                  0
                                                  --------------
Total Expenses Not Requiring Cash                         63,853
                                                  --------------
Total Cash from Operations                            13,860,083

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate              12,097,125
       Accounts Receivable Affiliate                 141,684,814
       Inventory                                               0
       Equipment                                           5,000
       Furniture & Fixtures                                    0
       Prepaids                                          315,000
       Deposits                                                0
       Other Current Assets                                    0
    Increase (Decr):
       Accounts Payable Non-Affiliates               (15,414,600)
       Accounts Payable Affiliates                  (125,382,865)
       Current Deferred Liabilities                            0
       Accrued Liabilities                                     0
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Professional Fees                               0
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
                                                  --------------
Total Other Sources & Uses of Cash                    13,304,474

Total Cash from Investing - Sale of Fixed Assets               0
                                                  --------------
Ending Cash Balance                                  $27,164,558
                                                  ==============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


PG&E NATIONAL: ET Power's October 2004 Monthly Operating Report
---------------------------------------------------------------

                  NEGT Energy Trading-Power L.P.
                     Unaudited Balance Sheet
                     As of October 31, 2004

ASSETS

Current Assets
    Cash                                             $27,237,033
    Accounts Receivable                              142,570,794
    Valuation from Unrealized Commodity Contracts   Undetermined
    Receivables from Officers/Employees/Affiliates  Undetermined
    Notes Receivable Stocks                                    0
    Inventory                                                  0
    Other Current Assets
       Deposits                                       45,140,769
       Prepaids                                          699,999
       Other Current Assets                                    0
                                                  --------------
Total Current Assets                                Undetermined

Fixed Assets
    Land                                                       -
    Building                                                   -
    Equipment, Furniture & Fixtures                    2,232,631
    Less Accumulated Depreciation                     (2,261,808)
    Other Fixed Assets                                         -
                                                  --------------
Total Fixed Assets                                        69,823

Other Assets                                                  -
                                                  --------------
Total Other Assets                                            $0
                                                  --------------
TOTAL ASSETS                                        Undetermined
                                                  ==============

LIABILITIES AND EQUITY

Postpetition Liabilities
    Accounts Payable                                          $0
    Accrued Quarterly Fees                                   250
    Notes Payable                                              0
    Rent and Leases Payable                                    0
    Taxes Payable                                              0
    Accrued Interest                                           0
    Other                                                      -
                                                  --------------
Total Postpetition Liabilities                              $250

Prepetition Liabilities
    Priority Claims                                 Undetermined
    Secured Debts                                   Undetermined
    Unsecured Debts                                 Undetermined
                                                  --------------
Total Prepetition Liabilities                       Undetermined

Owner's Equity (Deficit)
    Capital Stock/ Owner's Investments              Undetermined
    Paid-In Capital Surplus                         Undetermined
    Retained Earnings (deficit)
       Prepetition                                  Undetermined
       Postpetition                                 Undetermined
                                                  --------------
Total Owner's Equity                                Undetermined
                                                  --------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY          Undetermined
                                                  ==============


                  NEGT Energy Trading-Power L.P.
                         Income Statement
          For the Period October 1 to October 31, 2004

Total Sales/Income                                  ($7,333,629)

COST OF SALES:
    Purchases of Inventory                                     0
    Purchased Services                                         0
    Other: (Identify)                                          0
       Cost of Commodities                                     0
                                                  --------------
Total Cost of Sales                                            0
                                                  --------------
Gross Profit                                           7,333,629

OPERATING EXPENSES:
    Bank Fee Charges                                         233
    Bad Debt Expense                                    (446,339)
    Communications                                             0
    Entertainment                                              0
    Fixed Assets Depreciation                             34,910
    Indirect Allocations                                 433,119
    Legal Fees                                                 0
    Realized(Gain)/Loss on Foreign Exchange               (4,995)
    Unrealized(Gain)/Loss on Foreign Exchange              2,830
    Other                                                    450
    Training                                                   0
    Travel                                                     0
                                                  --------------
Total Operating Expenses                                  20,210
                                                  --------------
Profit/Loss from Operation                             7,313,418

Other Income (Expenses):
    Interest Income                                      433,721
    Interest Expense                                           0
    Other Income(Expenses)                                     0
                                                  --------------
Total Other Income (Expenses)                            433,721
                                                  --------------
Income Before Taxes                                   $7,747,139

Income Taxes Expense (Benefit)                      Undetermined
                                                  --------------
Net Income                                          Undetermined
                                                  ==============


                  NEGT Energy Trading-Power L.P.
                    Cash Reconciliation Report
          For the Period October 1 to October 31, 2004

Cash balance from prior balance sheet                $27,164,558
Pre-tax Net income for month                           7,747,139

Expense Not Requiring Cash:
    Depreciation                                          34,910
    (Gain) Loss on sale of fixed assets                        0
    Unrealized (Gain) loss on foreign exchange             2,830
    Relief of Allowance for Doubtful Accounts           (446,339)
                                                  --------------
Total Expenses Not Requiring Cash                       (408,597)
                                                  --------------
Total Cash from Operations                            34,503,099

Other sources/uses of cash:
    Decrease (Incr):
       Accounts Receivable Non-Affiliate              10,819,629
       Accounts Receivable Affiliate                     800,150
       Inventory                                               0
       Equipment                                               0
       Furniture & Fixtures                                    0
       Prepaids                                                0
       Deposits                                                0
       Other Current Assets                                    0
    Increase (Decr):
       Accounts Payable Non-Affiliates                (4,519,479)
       Accounts Payable Affiliates                   (22,450,021)
       Current Deferred Liabilities                            0
       Accrued Liabilities                                    96
       Accrued Interest                                        0
       Accrued P/R Taxes                                       0
       Accrued Professional Fees                               0
       Accrued Salaries                                        0
       Accrued Sales Tax                                       0
       Note Payable Taxes                                      0
       Additional Paid-In Capital                      8,083,750
                                                  --------------
Total Other Sources & Uses of Cash                     7,266,066

Total Cash from Investing - Sale of Fixed Assets               0
                                                  --------------
Ending Cash Balance                                  $27,237,033
                                                  ==============

Headquartered in Bethesda, Maryland, PG&E National Energy Group,
Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas
Transmission, Inc.) develops, builds, owns and operates electric
generating and natural gas pipeline facilities and provides energy
trading, marketing and risk-management services.  The Company and
its debtor-affiliates filed for Chapter 11 protection on July 8,
2003 (Bankr. D. Md. Case No. 03-30459).  Matthew A. Feldman, Esq.,
Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at
Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin
T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P.,
represent the Debtors in their restructuring efforts.  When the
Company filed for protection from its creditors, it listed
$7,613,000,000 in assets and $9,062,000,000 in debts.  NEGT
received bankruptcy court approval of its reorganization plan in
May 2004, and that plan took effect on Oct. 29, 2004.  (PG&E
National Bankruptcy News, Issue No. 38; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


NEWPOWER HOLDINGS: Files February 2005 Monthly Operating Report
---------------------------------------------------------------
On Mar. 30, 2005, NewPower Holdings, Inc., filed its February 2005
Monthly Operating Report for the period from January 31, 2005, to
February 28, 2005, with the U.S. Bankruptcy Court for the Northern
District of Georgia, Newnan Division.  The company reports an
opening cash balance of $53,474,000 and a closing cash balance of
$52,369,000.

A full-text copy of NewPower Holdings, Inc.'s February 2005
Monthly Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/1119307/000090514805002302/efc5-0914_exhibit991.txt

NewPower Holdings, Inc., and its debtor-affiliates filed for
chapter 11 protection on June 11, 2002 (Bankr. N.D. Ga. 02-10836).
Paul K. Ferdinands, Esq., at King & Spalding and William M.
Goldman, Esq., at Sidley Austin Brown & Wood LLP represent the
Debtors.  When the Debtors filed for chapter 11 protection, they
reported $231,837,000 in assets and $87,936,000 in debts.

On Aug. 15, 2003, the United States Bankruptcy Court for the
Northern District of Georgia, Newnan Division, confirmed the
Second Amended Chapter 11 Plan with respect to NewPower Holdings,
Inc., and TNPC Holdings, Inc., a wholly owned subsidiary of the
Company.  On February 28, 2003, the Bankruptcy Court previously
confirmed the Plan, and the Plan has been effective as of
March 11, 2003, with respect to The New Power Company, a wholly
owned subsidiary of the Company.  The Plan became effective on
Oct. 9, 2003, with respect to the Company and TNPC.


PARMALAT: Finanziaria Reports February 2005 Financial Results
-------------------------------------------------------------
Parmalat Finanziaria S.p.A. in Extraordinary Administration
reports the operating and financial results of the Parmalat Group
at February 28, 2005.

                      Scope of Consolidation

The scope of consolidation has been defined using principles that
are consistent with those adopted in preparing the statement of
income and balance sheet at December 31, 2004.  Companies that
are subject to certain restrictions on their management as a
result of local bankruptcy proceedings that have effectively
placed them outside the control of Parmalat Finanziaria S.p.A. in
Extraordinary Administration, and companies in voluntary
liquidation are no longer consolidated on a line-by-line basis.

The current scope of consolidation no longer includes companies in
which the Group held equity investments that were sold after
January 1, 2005.  The corresponding 2004 data have been restated
accordingly on a pro forma basis.  The operations divested in 2005
include the companies that comprised the USA Bakery Division
(Mother's Cake & Cookies, Archway Cookies and three production
units in Canada), which were sold in January 2005, and Parmalat
Uruguay, which was sold in February 2005.  Margherita Yogurt,
which was placed in liquidation in February 2005, has also been
removed from the scope of consolidation.

                        Financial Highlights

                     Cumulative Through February
                         (in EUR millions)

                                           Revenues
                               --------------------------------
                               Previous  Previous year  Current
                               year      Pro-Forma      year
                               --------  -------------  -------
     Core Activities              543.9          543.9    568.7
     Non Core Activities           83.4           76.4     56.0
                               --------  -------------  -------
     Total                        627.3          620.3    624.7
                               ========  =============  =======

                                             EBITDA
                               --------------------------------
                               Previous  Previous year  Current
                               year      Pro-Forma      year
                               --------  -------------  -------
     Core Activities               31.0           31.0     38.5
     Non Core Activities           (3.3)          (3.1)     5.8
                               --------  -------------  -------
     Subtotal                      27.7           27.8     44.4
     Proceedings costs             (9.7)          (9.7)   (10.0)
                               --------  -------------  -------
     Total                         17.9           18.1     34.4
                               ========  =============  =======

                                         % of Revenues
                               --------------------------------
                               Previous  Previous year  Current
                               year      Pro-Forma      year
                               --------  -------------  -------
     Core Activities              5.7          5.7       6.8
     Non Core Activities         (4.0)        (4.1)    (10.4)
                               --------  -------------  -------
     Subtotal                     4.4          4.5       7.1
     Total                        2.9          2.9       5.5[sic]
                               ========  =============  =======

      * The Core Businesses include beverages (milk and fruit
        juices) and functional dairy products, which are sold
        under approximately 30 brands primarily in high-potential
        countries in which there is sustained demand for wellness
        products, consumers are willing to pay a premium price
        for Parmalat brands and there is access to leading-edge
        technologies.

     ** The Non-core Businesses are those that are located in
        countries or engaged in activities that are not
        strategically significant and have been earmarked for
        divestiture.

                         Core Businesses

The Group's Core Businesses had revenues of EUR568.7 million at
February 28, 2005, up 4.6% from the EUR543.9 million booked in
the same period last year.  This revenue gain produced an
improvement in EBITDA as well, which grew both in absolute terms
(from EUR31.0 million to EUR38.5 million) and as a percentage of
revenues (from 5.7% to 6.8%).

These data do not reflect the impact of the non-recurring
charges related to the extraordinary administration proceedings,
which amounted to about EUR10.0 million, which is in line with
February 2004.

[Parmalat provides an] analysis of the Group's results in the main
geographic regions in which it operates:

     -- Italy

        At EUR206.1 million, cumulative revenues were slightly
        lower (-3.3%) than the EUR213.2 million booked in
        February 2004.

        This decrease was accompanied by a decrease in EBITDA,
        which declined from EUR15.7 million to EUR15.4 million.

        The revenue shortfall mainly reflects lower sales by
        Boschi, an affiliate that operates primarily in the
        copacking business and was recently declared eligible for
        Extraordinary Administration.  Total EBITDA held at about
        the same level as last year, as savings in manufacturing
        costs and overhead offset increases in promotional and
        advertising expenses.

     -- Spain

        Net revenues for the period totaled EUR31.5 million, down
        slightly compared with February 2004(-2.5%) from the
        EUR32.3 million reported last year.  At the same time,
        EBITDA improved from EUR1.5 million (4.6% of revenues) to
        EUR1.7 million (5.3% of revenues).

        Lower unit sales and changing conditions in the domestic
        market, where competition is becoming increasingly
        aggressive, are the main reasons why revenues fell short
        of the level achieved in 2004.

     -- South Africa

        At February 28, 2005, revenues rose to EUR41.4 million,
        or 16.9% more than the EUR35.4 million booked in the same
        month last year.  During the same period, EBITDA declined
        from EUR3.4 million to EUR3.3 million, equal to 9.5% and
        7.9% of revenues, respectively.

        The main reasons for the improvement in revenues compared
        with February 2004 include the significant appreciation
        of the South African rand versus the euro (average
        exchange rate up 9.6% compared with February 2004) and an
        increase in unit sales for all of the main product lines
        (only cheese shipments were lower).  Higher promotional
        expenses explain the reduction in EBITDA.

     -- Venezuela

        The decline in the value of the Bolivar versus the euro,
        which amounted to 17.1% compared with the average
        exchange rate for February 2004, was less than in
        previous months (-27.6% in December 2004, -24.8% in
        January 2005).

        At EUR24.2 million, cumulative revenues were 15.1% lower
        than in February 2004 (EUR28.5 million).  At the same
        time, EBITDA doubled in absolute terms (EUR2.0 million,
        compared with EUR0.9 million in 2004) and improved from
        3.1% to 8.3% as a percentage of revenues.

        The results reported in February, along with those of
        recent months, point to a turnaround for the Venezuelan
        companies, made possible by the recent implementation of
        reorganization and refocusing programs.  However, this
        progress is being hampered by the social policies
        recently adopted by the Venezuelan government.

     -- Canada

        Revenues were sharply higher, rising to EUR188.8 million,
        or 20.0% more than the EUR157.4 million reported in
        February 2004.

        The gain in net revenues, made possible by the combined
        impact of higher unit sales and the price increases
        implemented at the beginning of the year, produced an
        improvement in EBITDA, which rose both in absolute terms
        (from EUR6.7 million to EUR12.3 million) and as a
        percentage of revenues (from 4.3% to 6.5%).  An increase
        in sales days compared with February 2004 and a slight
        appreciation of the Canadian dollar versus the euro
        (+3.0% compared with the average exchange rate for
        February 2004) were also positive contributing factors.

     -- Australia

        At February 28, 2005, revenues were little changed from
        the EUR60.5 million booked last year.  At EUR3.8 million
        (6.3% of revenues), EBITDA were slightly better than in
        February 2004 (EUR3.4 million, 5.6% of revenues).

        A more favorable product mix (sales of pasteurized cream,
        desserts and tea were lower, but shipments of pasteurized
        and UHT milk were higher) is the main reason for the
        increase in EBITDA in the face of flat revenues.

        In addition, the Australian dollar depreciated slightly
        against the euro compared with the same period last year
        (-3.7% compared with the average exchange rate for
        February 2004).

                        Non-core Businesses

In February 2005, the Group's Non-core Businesses reported
revenues of EUR56.0 million, a decrease of 36.4% from pro forma
revenues of EUR76.4 million in February 2004.

However, even though net revenues were down, EBITDA improved
from a negative EUR3.1 million to a positive EUR5.8 million, due
mainly to an outstanding performance by the Parma Football Club.

                       NET FINANCIAL POSITION

                    Highlights (in EUR millions)

                        Balance    Balance    Balance    Balance
                          as at      as at      as at      as at
                       06/30/04   12/31/04   01/31/05   02/28/05
                       --------   --------   --------   --------
Short term
financial assets        (130.5)    (368.2)    (369.5)    (341.0)
   broken down as:

   Financial assets
   not held as
   fixed assets           (5.4)      (0.4)      (0.3)      (0.3)

   Liquid assets        (125.1)    (367.7)    (369.2)    (340.6)

Financial accrued
income and prepaid
expenses
(incl. intra-Group)      (55.0)     (25.6)     (17.1)     (15.9)
                      --------   --------   --------   --------
Total short-term
financial assets        (185.5)    (393.8)    (386.6)    (356.9)
                      ========   ========   ========   ========

Financial debts       11,408.0   11,386.7   11,273.5   11,238.3)

Financial accrued
expenses & deferred
income                   246.6      231.2      225.9      224.8
                      --------   --------   --------   --------

Total financial
liabilities           11,654.6   11,617.9   11,499.4   11,463.1

Indebtedness owed to
lenders outside the
Group/ (Financial
assets) of companies
consolidated
line-by-line          11,469.1   11,224.1   11,112.8   11,106.2

Indebtedness owed
by companies
consolidated
line-by-line to
companies that are
parties to local
composition-with-
creditors
proceedings              745.8      728.0      728.0      728.0

Indebtedness/
(Financial assets)
of companies
consolidated
line-by-line          12,214.9   11,952.2   11,840.8   11,834.3

Indebtedness/
(Financial assets)
of companies not
consolidated
line-by-line               4.3        6.9        6.9        6.9
                      --------   --------   --------   --------
Total indebtedness/
(financial assets)    12,219.2   11,959.0   11,847.7   11,841.1
                      ========   ========   ========   ========

At the end of February, the Group's total indebtedness showed
little change from a month earlier (down from EUR11,847.7 million
at January 31, 2005 to EUR11,841.1 million at February 28, 2005).
Liquid assets decreased due to the repayment of indebtedness by
Canadian, Australian and Portuguese companies.  The Group's
Portuguese operations benefited from a cancellation of a portion
of their indebtedness thanks to a settlement reached with the
involvement of Parmalat S.p.A.

The combined indebtedness owed to lenders outside the Group by
subsidiaries that are parties to local composition-with-creditors
proceedings and, consequently, have been deconsolidated is not
reflected in the net financial position shown above.  At
December 31, 2004, these borrowings totaled EUR2,484.4 million
(EUR2,437.3 million at June 30, 2004).  Because some of these
borrowings are secured by guarantees provided by Parmalat S.p.A.
and Parmalat Finanziaria S.p.A. in the amount of EUR1,668.1
million (EUR1,753.4 million at June 30, 2004), a reserve for
risks of an amount equal to the guaranteed indebtedness
(EUR1,675.2 million) was recognized in the consolidated financial
statements at June 30, 2004.  Based on currently available
information, it would seem reasonable to adjust the reserve
amount to EUR1,657.1 million.  The consolidated financial
statements also show that indebtedness owed by the Group to
companies in special proceedings who are not consolidated line by
line amounted to EUR728.0 million (EUR745.8 million at June 30,
2004).

As of today, no amount has been drawn from the EUR105.8-million
line of credit that a pool of banks provided to Parmalat
S.p.A. on March 4, 2004, and later renewed until September 2,
2005.

A breakdown of the net indebtedness owed to lenders outside the
Group by companies consolidated line-by-line:

                        (in EUR millions)

                        Balance    Balance    Balance    Balance
                          as at      as at      as at      as at
                       06/30/04   12/31/04   01/31/05   02/28/05
                       --------   --------   --------   --------
Companies in EA
   subject to proposed
   composition with
   creditors           10,084.0    9,928.8    9,819.2    9,826.5

Other companies in EA      42.8      106.7       99.6      102.6

Other companies         1,342.3    1,188.6    1,194.1    1,177.1
                       --------   --------   --------   --------
Total indebtedness/
(financial assets)     11,469.1   11,224.1   11,112.8   11,106.2
                       ========   ========   ========   ========

            Companies in Extraordinary Administration

The net indebtedness incurred by companies under extraordinary
administration toward lenders outside the Group prior to their
becoming eligible for extraordinary administration is all short-
term, since all of these companies are in default of the covenants
of the respective loan agreements.

Liquid assets held by the companies included in the Proposal of
Composition with Creditors decreased from EUR230.1 million at
January 31, 2005 to EUR222.7 million at February 28, 2005, due
mainly to loans provided to other Group companies.

                          Other Companies

The net indebtedness owed to lenders outside the Group by the
remaining operating and financial companies, which are
consolidated line by line but are not included in the
extraordinary administration proceedings, improved slightly,
decreasing from EUR1,194.1 million at January 31, 2005, to
EUR1,177.1 million (including EUR692.9 million in long-term debt)
at February 28, 2005.

The comments provided on the performance of the individual
companies show in greater detail the main changes that occurred
in February 2005.

Some Group companies are currently renegotiating their
indebtedness in order to restructure it.

      Principal Companies Under Extraordinary Administration

Financial highlights of the principal Italian companies under
extraordinary administration:

                      Parmalat Finanziaria SpA
                   (Amounts in millions of Euros)

                        Balance    Balance    Balance    Balance
                          as at      as at      as at      as at
                       06/30/04   12/31/04   01/31/05   02/28/05
                       --------   --------   --------   --------
Short-term financial
assets                   (140.0)     (17.8)     (18.4)     (17.4)
   broken down as:

   Intra-Group loans
   receivable            (138.8)     (17.1)     (17.1)     (17.1)

   Financial assets not
   held as fixed assets    (0.0)         -          -          -

   Liquid assets           (1.1)      (0.7)      (1.3)      (0.3)

Financial accrued
Income and prepaid
expenses
(including intra-Group)       -       (0.1)         -          -
                       --------   --------   --------   --------
Total short-term
financial assets         (140.0)     (18.0)     (18.4)     (17.4)
                       ========   ========   ========   ========

Financial liabilities
(including intra-Group) 1,272.9    1,278.8    1,281.3    1,281.3
   broken down as:

   Intra-Group
   loans payable        1,010.9    1,016.8    1,014.8    1,014.8

   Other financial
   debts                  262.0      262.0      266.5      266.5

Financial accrued
Expenses and
deferred income
(including intra-Group)     4.7        4.7          -          -
                       --------   --------   --------   --------
Total financial
liabilities             1,277.6    1,283.5    1,281.3    1,281.3
                       --------   --------   --------   --------
Total indebtedness/
(financial assets)      1,137.6    1,265.6    1,262.9    1,263.9
                       ========   ========   ========   ========

The indebtedness of Parmalat Finanziaria S.p.A. was virtually
unchanged compared with the previous month.

                            Parmalat SpA
                   (Amounts in millions of Euros)

                        Balance    Balance    Balance    Balance
                          as at      as at      as at      as at
                       06/30/04   12/31/04   01/31/05   02/28/05
                      --------   --------   --------   --------
Short-term financial
assets                   (61.7)    (155.7)    (143.5)    (156.7)
   broken down as:

   Intra-Group
   loans receivable      (38.6)     (36.5)     (33.7)     (47.0)

   Financial assets
   not held as
   fixed assets              -          -          -          -

   Liquid assets         (23.2)    (119.2)    (109.7)    (109.7)

Financial accrued
Income and prepaid
Expenses (including
intra-Group)                 -       (0.1)         -          -
                      --------   --------   --------   --------
Total short-term
financial assets         (61.7)    (155.8)    (143.5)    (156.7)
                      ========   ========   ========   ========

Financial liabilities
(including
intra-Group)           4,144.1    3,891.6    3,776.6    3,766.7
   broken down as:

   Intra-Group
   loans payable       1,266.2    1,007.0    1,007.0      997.2

   Other financial
   debts               2,877.9    2,884.6    2,769.6    2,769.6

Financial accrued
Expenses and
deferred income
(including intra-Group)      -          -          -          -
                      --------   --------   --------   --------
Total financial
liabilities            4,144.1    3,891.6    3,776.6    3,766.7
                      --------   --------   --------   --------
Total indebtedness/
(financial assets)     4,082.4    3,735.7    3,633.1    3,610.0
                      ========   ========   ========   ========

The decrease in indebtedness compared with the previous
month reflects the offsetting among Group companies of debt
positions that arose before the start of the extraordinary
administration proceedings.

The change that occurred in February 2005 in the amount of
intra-Group loans receivable reflects the granting of two new
loans to Parmalat Portugal SA (for EUR11.6 million) and to Latte
Sole S.p.A. (for EUR1.6 million).  The disbursement of these
loans did not affect the company's liquidity because they were
funded entirely from the regular cash flow from operations.

                            Eurolat SpA
                   (Amounts in millions of Euros)

                        Balance    Balance    Balance    Balance
                          as at      as at      as at      as at
                       06/30/04   12/31/04   01/31/05   02/28/05
                       --------   --------   --------   --------
Short-term financial
assets                    (23.2)      (8.7)     (12.3)      (7.8)
   broken down as:

   Intra-Group
   loans receivable           -       (2.2)      (2.2)      (2.2)

   Financial assets not
   held as fixed assets       -          -          -          -

   Liquid assets          (23.2)      (6.5)     (10.1)      (5.6)

Financial accrued income
and prepaid expenses
(including intra-Group)       -       (0.1)      (0.0)      (0.1)
                       --------   --------   --------   ---------
Total short-term
financial assets          (23.2)      (8.8)     (12.3)      (7.8)
                       ========   ========   ========   =========

Financial liabilities
(including intra-Group)   189.3      188.2      188.2      188.2
   broken down as:

   Intra-Group loans
   payable                 45.8       43.8       43.8       43.8

   Other financial debts  143.5      144.4      144.4      144.4

Financial accrued expenses
and deferred income
(including intra-Group)     0.7          -          -          -
                       --------   --------   --------   --------
Total financial
liabilities               190.0      188.2      188.2      188.2
                       --------   --------   --------   --------
Total indebtedness/
(financial assets)        166.8      179.4      175.9      180.4
                       ========   ========   ========   ========

The liquid assets held by Eurolat S.p.A. decreased in February
2005.

                             Lactis SpA
                   (Amounts in millions of Euros)

                        Balance    Balance    Balance    Balance
                          as at      as at      as at      as at
                       06/30/04   12/31/04   01/31/05   02/28/05
                       --------   --------   --------   --------
Short-term financial
assets                     (3.7)      (4.4)      (4.4)      (4.2)
   broken down as:

   Intra-Group
   loans receivable           -          -          -          -

   Financial assets not
   held as fixed assets       -          -          -          -

   Liquid assets           (3.7)      (4.4)      (4.4)      (4.2)

Financial accrued income
and prepaid expenses
(including intra-Group)    (0.0)      (0.0)      (0.0)      (0.0)
                       --------   --------   --------   --------
Total short-term
financial assets           (3.7)      (4.4)      (4.4)      (4.2)
                       ========   ========   ========   ========

Financial liabilities
(including intra-Group)    19.1       19.1       19.1       19.1
   broken down as:

   Intra-Group
   loans payable            8.6        8.6        8.6        8.6

   Other financial
   liabilities             10.5       10.5       10.5       10.5

Financial accrued expenses
and deferred income
(including intra-Group)       -        0.0        0.0        0.0
                       --------   --------   --------   --------
Total financial
liabilities                19.1       19.1       19.1       19.1
                       --------   --------   --------   --------
Total indebtedness/
(financial assets)         15.4       14.7       14.7       14.9
                       ========   ========   ========   ========

The indebtedness of Lactis S.p.A. at February 28, 2005 was
unchanged compared with the previous month.

                        Significant Events

  February 1        The Extraordinary Commissioner files an
                    action to void pursuant to Article 67 of the
                    Italian Bankruptcy Law against Morgan Stanley
                    Limited and Morgan Stanley Bank.

  February 16       Lacteria SA sells Parmalat Uruguay SA.

  March 1           The Italian Minister of Production
                    Activities, acting in concert with the
                    Minister of Farming and Forestry Policies,
                    approves certain amendments to the method of
                    implementing the Restructuring Program of the
                    Parmalat Group and to the Creditors Proposal.

  March 1           The Board of Directors of Parmalat S.p.A.
                    (Assumptor) passes a resolution approving the
                    amendments to the Proposal of Composition
                    with Creditors that were authorized by the
                    Minister of Production Activities, acting in
                    concert with the Minister of Farming and
                    Forestry Policies; approving drafts of the
                    Prospectus, the 2005-2007 Industrial Plan of
                    the Parmalat Group, the Memorandum on the
                    Management Control System, the application to
                    list the Company's shares and the request for
                    clearance to publish the Prospectus; adopting
                    a System of Corporate Governance, an Internal
                    Dealing Code and a Code of Ethics for all
                    Group companies; approving the Company's 2004
                    statutory financial statements; and agreeing
                    to submit to the Stockholders' Meeting a
                    motion to amend the Company's Bylaws.

  March 1           The Stockholders' Meeting of Parmalat S.p.A.
                    (Assumptor) passes a resolution approving the
                    Company's 2004 statutory financial
                    statements; increasing the Company's capital
                    stock; electing the Company's Board of
                    Directors, Chairman and Statutory Auditors;
                    and approving the application to list the
                    shares and warrants of Parmalat S.p.A.
                    (Assumptor).

  March 2           Parmalat Finanziaria S.p.A. publishes the
                    final recovery ratios for the unsecured
                    claims of creditors of the 16 companies in
                    Extraordinary Administration party to the
                    composition with Creditors Proposal.

  March 9           The Extraordinary Commissioner files an
                    action to void pursuant to Article 67 of the
                    Italian Bankruptcy Law against factoring
                    companies and banks that had not been the
                    target of previous actions to void announced
                    on August 6, 2004, August 9, 2004, August 19,
                    2004, and December 16, 2004.

  March 15          The Board of Directors of Parmalat S.p.A.
                    (Assumptor) appoints a Chief Executive
                    Officer.

  March 15          The Stockholders' Meeting retains
                    PricewaterhouseCoopers to audit the
                    financial statements for 2005, 2006 and 2007,
                    as required under Article 159 of Legislative
                    Decree No. 58 of February 24, 1998, and
                    agrees to amend the Company's Bylaws in
                    accordance with the recommendations of Borsa
                    Italiana S.p.A.

Headquartered in Wallington, New Jersey, Parmalat U.S.A.
Corporation -- http://www.parmalatusa.com/-- generates more
than EUR7 billion in annual revenue.  The Parmalat Group's 40-
some brand product line includes milk, yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices.  The company employs over 36,000
workers in 139 plants located in 31 countries on six continents.
It filed for chapter 11 protection on February 24, 2004 (Bankr.
S.D.N.Y. Case No. 04-11139).  Gary Holtzer, Esq., and Marcia L.
Goldstein, Esq., at Weil Gotshal & Manges LLP represent the
Debtors in their restructuring efforts.  When the U.S. Debtors
filed for bankruptcy protection, they reported more than $200
million in assets and debts.  The Bankruptcy Court confirmed the
U.S. Debtors' Plan of Reorganization on March 7, 2005.  (Parmalat
Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service,
Inc., 215/945-7000)


ROUGE INDUSTRIES: Files August 2004 Monthly Operating Report
------------------------------------------------------------
On April 1, 2005, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed their August 2004 monthly operating report
with the Securities and Exchange Commission.

Substantially all of the Debtors' assets were acquired on
January 30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement.  The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004.  As of August 31, 2004, the Company saw an ending cash
balance of $97,971,423.

A full-text copy of Rouge Industries, Inc.'s August 2004 Monthly
Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/918577/000095012305003992/y07394aexv99w1.txt

Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.


ROUGE INDUSTRIES: Files September 2004 Monthly Operating Report
---------------------------------------------------------------
On April 1, 2005, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed their September 2004 monthly operating
report with the Securities and Exchange Commission.

Substantially all of the Debtors' assets were acquired on
Jan. 30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement.  The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004.  As of September 30, 2004, the Company saw an ending cash
balance of $97,323,185.

A full-text copy of Rouge Industries, Inc.'s September 2004
Monthly Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/918577/000095012305003995/y07394dexv99w1.txt

Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.


ROUGE INDUSTRIES: Files October 2004 Monthly Operating Report
-------------------------------------------------------------
On April 1, 2005, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed their October 2004 monthly operating
report with the Securities and Exchange Commission.

Substantially all of the Debtors' assets were acquired on
January 30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement.  The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004.  As of October 31, 2004, the Company saw an ending cash
balance of $97,187,532.

A full-text copy of Rouge Industries, Inc.'s October 2004 Monthly
Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/918577/000095012305003997/y07394fexv99w1.txt

Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.


ROUGE INDUSTRIES: Files November 2004 Monthly Operating Report
--------------------------------------------------------------
On April 1, 2005, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed their November 2004 monthly operating
report with the Securities and Exchange Commission.

Substantially all of the Debtors' assets were acquired on
January 30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement.  The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004.  As of November 30, 2004, the Company saw an ending cash
balance of $99,696,565.

A full-text copy of Rouge Industries, Inc.'s November 2004 Monthly
Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/918577/000095012305003993/y07394bexv99w1.txt

Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.


ROUGE INDUSTRIES: Files December 2004 Monthly Operating Report
--------------------------------------------------------------
On April 1, 2005, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed their December 2004 monthly operating
report with the Securities and Exchange Commission.

Substantially all of the Debtors' assets were acquired on
January 30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement.  The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004.  As of December 31, 2004, the Company saw an ending cash
balance of $100,728,960.

A full-text copy of Rouge Industries, Inc.'s December 2004 Monthly
Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/918577/000095012305003994/y07394cexv99w1.txt

Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.


ROUGE INDUSTRIES: Files January 2005 Monthly Operating Report
-------------------------------------------------------------
On April 1, 2005, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed their January 2004 monthly operating
report with the Securities and Exchange Commission.

Substantially all of the Debtors' assets were acquired on
January 30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement.  The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004.  As of January 31, 2005, the Company saw an ending cash
balance of $100,288,673.

A full-text copy of Rouge Industries, Inc.'s January 2005 Monthly
Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/918577/000095012305003998/y07394gexv99w1.txt

Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.


ROUGE INDUSTRIES: Files February 2005 Monthly Operating Report
--------------------------------------------------------------
On April 1, 2005, Rouge Industries, Inc., and its wholly owned
subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth
Taconite Company, filed their February 2004 monthly operating
report with the Securities and Exchange Commission.

Substantially all of the Debtors' assets were acquired on
January 30, 2004, by SeverStal N.A. in exchange for cash and other
consideration pursuant to the terms of the Asset Purchase
Agreement.  The APA was authorized by an order of the Court on
December 2, 2003, subsequently amended and executed on January 30,
2004.  As of February 28, 2005, the Company saw an ending cash
balance of $100,848,095.

A full-text copy of Rouge Industries, Inc.'s February 2005 Monthly
Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/918577/000095012305003996/y07394eexv99w1.txt

Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. Del. Case No. 03-13272).
Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed total assets of $558,131,000 and total
debts of $558,131,000.


SOLUTIA INC: Posts $316 Million Net Loss for Fiscal Year 2004
-------------------------------------------------------------
A full-text copy of Solutia's Annual Report on Form 10-K is
available for free at:


http://www.sec.gov/Archives/edgar/data/1043382/000106880005000162/sol10k.txt

                            SOLUTIA INC.
            Statement of Consolidated Financial Position
                      As of December 31, 2004
                           (In millions)

                              ASSETS

Current Assets:
    Cash and cash equivalents                              $115
    Trade receivables, net                                  286
    Miscellaneous receivables                                93
    Inventories                                             239
    Prepaid expenses                                         45
                                                        -------
Total Current Assets                                        778

Property, Plant and Equipment, net                          841
Investments in Affiliates                                   177
Goodwill, net                                                76
Identified Intangible Assets, net                            38
Other assets                                                166
                                                        -------
TOTAL ASSETS                                             $2,076
                                                        =======

            LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities:
    Accounts payable                                       $198
    Accrued liabilities                                     283
    Short-term debt                                         300
                                                        -------
Total Current Liabilities                                   781

Long-term debt                                              285
Other liabilities                                           267
                                                        -------
Total Liabilities Not Subject to Compromise               1,333

Liabilities Subject to Compromise                         2,187

Total Shareholders' Deficit                              (1,444)
                                                        -------
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT              $2,076
                                                        =======

                            SOLUTIA INC.
                Statement of Consolidated Operations
                    Year Ended December 31, 2004
                           (In Millions)

NET SALES                                                $2,697
Cost of goods sold                                        2,474
                                                        -------
Gross Profit                                                223
                                                        -------
Marketing expenses                                          143
Administrative expenses                                     102
Technological expenses                                       44
Amortization expense                                          2
Impairment of intangible assets                              28
                                                        -------
Operating Income (Loss)                                     (96)

Equity earnings (loss) from affiliates, net of tax          (26)
Interest expense                                           (113)
Other income (expense), net                                   1
Loss on debt modification                                   (15)
Reorganization items, net                                   (73)
                                                        -------
Loss before income tax expense (benefit)                   (322)
Income tax expense (benefit)                                 (6)
                                                        -------
Loss from continuing operations before discontinued
   operations and cumulative effect of change in
   accounting principle                                    (316)
Income (Loss) from Discontinued Operations                    -
Cumulative Effect of Change in Accounting Principle           -
                                                        -------
NET LOSS                                                  ($316)
                                                        =======

                            SOLUTIA INC.
                Statement Of Consolidated Cash Flows
                    Year Ended December 31, 2004
                           (In millions)

Cash & cash equivalents used in operating activities:
Net loss                                                  ($316)
Adjustments to reconcile to Cash From Operations:
    Cumulative effect of change in accounting principle       -
    Depreciation and amortization                           127
    Loss (Income) from discontinued operations                -
    Amortization of deferred credits                        (33)
    Settlement of Anniston litigation and other
       litigation matters                                     -
    Impairment of intangible assets                          28
    Restructuring expenses and other charges                162
    Other, net                                                4
    Changes in assets and liabilities
       Income and deferred taxes                            (16)
       Trade receivables                                     (5)
       Inventories                                            1
       Accounts payable                                     120
       Liabilities subject to compromise                    (34)
       Other assets and liabilities                           3
                                                        -------
Cash provided by operations - continuing operations          41
Cash provided by operations - discontinued operations         -
                                                        -------
    Cash provided by (used in) operations                    41
                                                        -------
Investing activities:
Property, plant and equipment purchases                     (61)
Acquisition and investment payments, net                    (36)
Property disposals and investment proceeds, net               -
                                                        -------
Cash used in investing activities - continuing              (97)
Cash used in investing activities - discontinued              -
                                                        -------
    Cash provided by (used in) investing activities         (97)
                                                        -------
Financing Activities:
Net change in short-term debt obligations                  (361)
Proceeds from issuance of long-term debt obligations        300
Net change in cash collateralized letters of credit          87
Issuance of stock warrants                                    -
Deferred debt issuance costs                                (14)
Dividend payments                                             -
Other, net                                                    -
                                                        -------
Cash provided by financing activities - continuing           12
Cash used in financing activities - discontinued              -
                                                        -------
    Cash provided by (Used in) financing activities          12
                                                        -------
Increase (Decrease) in cash and cash equivalents            (44)
Cash and Cash equivalents, beginning of year                159
                                                        -------
CASH AND CASH EQUIVALENTS, END OF YEAR                     $115
                                                        =======

Headquartered in St. Louis, Missouri, Solutia, Inc. --
http://www.solutia.com/-- with its subsidiaries, make and sell a
variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications.  The Company
filed for chapter 11 protection on December 17, 2003 (Bankr.
S.D.N.Y. Case No. 03-17949).  When the Debtors filed for
protection from their creditors, they listed $2,854,000,000 in
assets and $3,223,000,000 in debts.  Solutia is represented by
Conor D. Reilly, Esq., and Richard M. Cieri, Esq., at Gibson,
Dunn & Crutcher, LLP.  (Solutia Bankruptcy News, Issue No. 35;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


SOLUTIA INC: Earns $1 Million of Net Income in February 2005
------------------------------------------------------------

                    Solutia Chapter 11 Debtors
      Unaudited Statement of Consolidated Financial Position
                     As of February 28, 2005

                             ASSETS

Current Assets:
   Cash                                             $11,000,000
   Trade Receivables, net                           169,000,000
   Account Receivables-Unconsolidated subsidiaries   51,000,000
   Inventories                                      171,000,000
   Other Current Assets                              56,000,000
                                                 --------------
Total Current Assets                                458,000,000

Property, Plant and Equipment, net                  693,000,000
Investments in Affiliates                           498,000,000
Intangible Assets, net                              101,000,000
Other Assets                                         97,000,000
                                                 --------------
TOTAL ASSETS                                     $1,847,000,000
                                                 ==============

              LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities
   Accounts Payable                                $178,000,000
   Short Term Debt                                  300,000,000
   Other Current Liabilities                        136,000,000
                                                 --------------
Total Current Liabilities                           614,000,000

Other Long-Term Liabilities                         212,000,000
                                                 --------------
Total Liabilities Not Subject to Compromise         826,000,000
Liabilities Subject to Compromise                 2,291,000,000
Shareholders' Deficit                            (1,270,000,000)
                                                 --------------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT        $1,847,000,000
                                                 ==============


                    Solutia Chapter 11 Debtors
         Unaudited Consolidated Statement of Operations
              For the Month Ended February 28, 2005

Total Net Sales                                    $190,000,000
Total Cost Of Goods Sold                            171,000,000
                                                 --------------
Gross Profit                                         19,000,000
Total MAT Expense                                    17,000,000
                                                 --------------
Operating Income                                      2,000,000

Equity Income from Affiliates                         6,000,000
Interest Expense, net                                (5,000,000)
Other Income, net                                     2,000,000

Reorganization Items:
   Professional fees                                 (4,000,000)
   Adjustments to allowed claim amounts                       -
                                                 --------------
   Total Reorganization Items                        (4,000,000)
                                                 --------------
Income Before Taxes                                   1,000,000
Income Tax                                                    -
                                                 --------------
NET INCOME                                           $1,000,000
                                                 ==============

Headquartered in St. Louis, Missouri, Solutia, Inc. --
http://www.solutia.com/-- with its subsidiaries, make and sell a
variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications.  The Company
filed for chapter 11 protection on December 17, 2003 (Bankr.
S.D.N.Y. Case No. 03-17949).  When the Debtors filed for
protection from their creditors, they listed $2,854,000,000 in
assets and $3,223,000,000 in debts.  Solutia is represented by
Conor D. Reilly, Esq., and Richard M. Cieri, Esq., at Gibson,
Dunn & Crutcher, LLP.  (Solutia Bankruptcy News,
Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000)


TORCH OFFSHORE: Posts $3.9 Million Net Loss in February 2005
------------------------------------------------------------
On March 25, 2005, Torch Offshore, Inc., and its wholly owned
subsidiaries, Torch Offshore, L.L.C., and Torch Express, L.L.C.,
filed their monthly operating reports for the period February 1,
2005, through February 28, 2005, with the U.S. Bankruptcy Court
for the Eastern District of Louisiana.

Torch Offshore, Inc., reported a $3,698,839 net loss in $879,926
of total revenues for the period from Feb. 1, 2005, through
Feb. 28, 2005.

At Feb. 28, 2005, Torch Offshore, Inc.'s balance sheet shows:

      Current Assets                         $148,215,701
      Total Assets                            171,217,158
      Total Postpetition Liabilities            4,416,011
      Total Liabilities                       131,846,675
      Total Stockholders' Equity              $39,370,483

A full-text copy of their Monthly Operating Reports for the period
ended Feb. 28, 2005, are available at no charge at:

Torch Offshore, Inc.:


http://www.sec.gov/Archives/edgar/data/1129650/000095012905003083/h23956exv99w1.txt

Torch Offshore, L.L.C.:


http://www.sec.gov/Archives/edgar/data/1129650/000095012905003083/h23956exv99w2.txt

Torch Express, L.L.C.:


http://www.sec.gov/Archives/edgar/data/1129650/000095012905003083/h23956exv99w3.txt

Headquartered in Gretna, Louisiana, Torch Offshore, Inc., provides
integrated pipeline installation, sub-sea construction and support
services to the offshore oil and gas industry, primarily in the
Gulf of Mexico.  The Company and its debtor-affiliates filed for
chapter 11 protection (Bankr. E.D. La. Case No. 05-10137) on
Jan. 7, 2005.  Jan Marie Hayden, Esq., at Heller, Draper, Hayden,
Patrick & Horn, L.L.C., and Lawrence A. Larose, Esq., at King &
Spalding LLP, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed $201,692,648 in total assets and
$145,355,898 in total debts.


TRENWICK AMERICA: Posts $60 Million Net Loss in February 2005
-------------------------------------------------------------
On Mar. 21, 2005, Trenwick America Corporation filed its monthly
operating report for the month ended Feb. 28, 2005, and the
period from Aug. 20, 2003, to Feb. 28, 2005, with the United
States Bankruptcy Court for the District of Delaware.

Trenwick posts a $60,249,005 net loss in February 2005, and a
cumulative $120,501,384 loss for the period from Aug. 20, 2003, to
Feb. 28, 2005.

At Feb. 28, 2005, Trenwick America's balance sheet showed:

      Total Current Assets         $56,064,761
      Total Assets                 187,355,526
      Total Prepetition Debts      288,386,386
      Total Liabilities            293,123,565
      Net Owner Equity Deficit   ($105,768,039)

A full-text copy of Trenwick America's February 2005 Monthly
Operating Report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/1127783/000116923205001984/d63236_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.


TRINITY ENERGY: Releases January 2005 Operating Report
------------------------------------------------------
On Mar. 15, 2005, Trinity Energy Resources, Inc., filed its
monthly operating report for the month ended January 2005 with
the United States Bankruptcy Court for the Southern District of
Texas, Houston Division.

At Jan. 31, 2005, the Debtor's balance sheet showed:

      Total Current Assets                   $402,898
      Total Assets                          1,232,220
      Total Liabilities                     1,785,203
      Total Owner's Equity Deficit          $(552,983)

A full-text copy of Trinity Energy's January 2005 monthly
operating report is available at no charge at:


http://www.sec.gov/Archives/edgar/data/1082292/000101540205001714/ex99_1.htm

Headquartered in Houston, Texas, Trinity Energy Resources, Inc.,
develops and operates proven oil and gas reserves in the Rocky
Mountains, Texas, and Louisiana, with international interests in
the African Republic of Chad.  The Company filed for chapter 11
protection on Jan. 31, 2003 (Bankr. S.D. Tex. Case No. 03-31453).
John William Mahoney, Esq., at Williams Birnberg & Andersen
represents the Debtor in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it listed
$1,009,626 in total assets and $1,619,031 in total debts as of
Sept. 30, 2002.  On April 23, 2003, the Bankruptcy Court appointed
Elizabeth M. Guffy as the Chapter 11 Trustee.


WESTPOINT STEVENS: Posts $21.8 Million Net Loss in February 2005
----------------------------------------------------------------

                     WESTPOINT STEVENS, INC.
                          Balance Sheet
                      At February 28, 2005
                         (in thousands)

                             Assets

Current Assets
   Cash and cash equivalents                             $3,703
   Short-term investments                                     -
   Accounts receivable, net                             194,241
   Inventories                                          287,723
   Prepaid expenses and other current assets             19,048
                                                     ----------
Total current assets                                    504,715

Total investments and other assets                       93,133
Goodwill                                                      -
Property, Plant and Equipment, net                      479,015
                                                     ----------
TOTAL ASSETS                                         $1,076,863
                                                     ==========

            Liabilities and Stockholders' Equity (Deficit)

Liabilities Not Subject to Compromise:
   Senior Credit Facility                              $438,208
   DIP Credit Agreement                                  59,687
   Second lien facility                                 165,000
   Accrued interest payable                               1,458
   Accounts payable - trade                              46,507
   Accounts payable - intercompany                      172,270
   Other accrued liabilities                            116,974
   Deferred income taxes                                  2,601
   Pension and other liabilities                        146,538
                                                     ----------
Total liabilities not subject to compromise           1,149,243

Liabilities Subject to Compromise
   Senior notes                                       1,000,000
   Deferred financing fees                               (4,227)
   Accrued interest payable on Senior Notes              36,313
   Accounts payable                                      27,557
   Other payables and accrued liabilities                 8,232
   Pension and other liabilities                         15,478
                                                     ----------
Total liabilities not subject to compromise           1,083,353
                                                     ----------
Total Liabilities                                     2,232,596

Shareholders' Equity (Deficit)
   Equity of subsidiaries                              (123,757)
   Common stock                                             711
   Capital surplus/Treasury Stock                        41,122
   Retained earnings (deficit)                         (963,848)
   Minimum pension liability adjustment                (109,403)
   Other adjustments                                       (558)
   Unearned compensation                                      -
                                                     ----------
Stockholders' Equity (Deficit)                       (1,155,733)
                                                     ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)   $1,076,863
                                                     ==========

                     WESTPOINT STEVENS, INC.
                     Statement of Operations
                  Month Ended February 28, 2005
                         (in thousands)

Total sales                                             $97,243
Cost of sales                                            96,826
                                                     ----------
   Gross profit                                             417

Selling and administrative expenses
   Selling expenses                                       3,565
   Warehousing and shipping                               5,010
   Advertising                                              385
   Division administrative expense                          910
   MIS expense                                            1,370
   Corporate administrative expense                       1,301
                                                     ----------
Total selling and administrative expense                 12,541
Restructuring and impairment charge                          89
Fixed asset impairment charge                                 -
Goodwill impairment charge                                    -
                                                     ----------
   Profit (loss) from operations                        (12,213)

Interest expense
   Interest expense - outside                             6,538
   Capitalized interest expense                               -
   Interest expense - intercompany                          529
   Interest income                                            2
   Interest income - intercompany                             -
                                                     ----------
Net interest expense                                      7,065

Other expense
   Miscellaneous                                            645
   Royalties - intercompany                               3,500
   Transaction gain/loss                                      -
                                                     ----------
   Total other expense                                    4,145

Other income
   Royalties - intercompany                                   -
   Dividends                                                  -
   Sale of assets                                            73
   Miscellaneous                                             11
                                                     ----------
   Total other income                                        84
                                                     ----------
Net other expense                                         4,061
                                                     ----------
Income (loss) before Chapter 11 reorganization
    expenses and income taxes (benefit) and
    extraordinary items                                 (23,339)

Chapter 11 reorganization expenses                        1,336

Income tax expense (benefit)                             (2,878)

Extraordinary item - net of taxes                             -
                                                     ----------
Net Income (loss)                                      ($21,797)
                                                     ==========

                     WESTPOINT STEVENS, INC.
                     Statement of Cash Flows
                  Month Ended February 28, 2005
                         (in thousands)

Cash flows from operations:
Net income (loss)                                      ($21,797)
   Restructuring                                              -
   Equity adjustments                                     2,302

Non-cash items
   Depreciation and amortization expense                 11,604
   Fixed asset impairment charge                              -
   Gain/(loss) on sale of assets                             73

Working Capital Changes
   Decrease/(increase) - accounts receivable              1,094
   Decrease/(increase) - inventories                      3,885
   Decrease/(increase) - other current assets             2,199
   Decrease/(increase) - other non-current
      assets & debts                                        698
   Increase/(decrease) - accounts payable (trade)        (4,237)
   Increase/(decrease) - a/p (intercompany)               4,257
   Increase/(decrease) - accrued liabilities             (6,359)
   Increase/(decrease) - accrued interest payable            12
   Increase/(decrease) - pension and other liabilities    1,015
   Increase/(decrease) - deferred federal income tax     (1,255)
                                                     ----------
Total cash flows from operations                         (6,509)

Cash flows from investing activities:
   Decrease/(increase) - short-term investments               -
   Capital expenditures                                    (412)
   Transfers                                                  -
   Net proceeds from sale of assets                           -
                                                     ----------
Total cash flows from investing                            (412)

Cash flows from financing activities:
   Increase/(decrease)- DIP Credit Agreement              8,534
                                                     ----------
Total cash flows from financing                           8,534

Beginning cash balance                                    2,090
Change in cash                                            1,613
                                                     ----------
Ending cash balance                                      $3,703
                                                     ==========

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. 42; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


WESTPOINT STEVENS: WP Stevens I Posts $3MM Net Income in February
-----------------------------------------------------------------

                    WESTPOINT STEVENS, INC., I
                          Balance Sheet
                     At February 28, 2005
                         (in thousands)

                             Assets

Current Assets
   Cash and cash equivalents                                $34
   Short-term investments                                     -
   Accounts receivable - customers                            -
   Accounts receivable - intercompany                    29,832
   Total Inventories                                      5,870
   Prepaid expenses and other current assets                  -
                                                     ----------
Total current assets                                     35,736

Total investments and other assets                        9,447
Goodwill                                                      -
Property, Plant and Equipment, net                       11,841
                                                     ----------
TOTAL ASSETS                                            $57,024
                                                     ==========

            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                                $692
   Accounts payable - intercompany                            -
   Other accrued liabilities                             11,460
   Deferred income taxes                                      -
   Pension and other liabilities                              -
                                                     ----------
Total Liabilities Not Subject to Compromise              12,152

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                          3,445
                                                     ----------
Total Liabilities Subject to Compromise                   4,883
                                                     ----------
Total Liabilities                                        17,035

Shareholders' Equity (Deficit)
   Equity of subsidiaries                                     -
   Common stock                                               1
   Capital surplus/Treasury Stock                        70,559
   Retained earnings (deficit)                          (30,571)
   Minimum pension liability adjustment                       -
   Other adjustments                                          -
   Unearned compensation                                      -
                                                     ----------
Shareholders' Equity (Deficit)                           39,989
                                                     ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)      $57,024
                                                     ==========

                    WESTPOINT STEVENS, INC., I
                     Statement of Operations
                  Month Ended February 28, 2005
                         (in thousands)

Net sales                                                $3,170
Cost of goods sold                                        1,902
                                                     ----------
   Gross earnings                                         1,268

Selling and administrative expenses
   Selling expenses                                           1
   Warehousing and shipping                                 147
   Advertising                                                -
   Division administrative expense                            -
   MIS expense                                                -
   Corporate administrative expense                         170
                                                     ----------
Total selling and administrative expense                    318

Restructuring and impairment charge                           -
Goodwill impairment charge                                    -
                                                     ----------
   Operating earnings (loss)                                950

Interest expense
   Interest expense - outside                                 -
   Capitalized interest expense                               -
   Interest expense - intercompany                            -
   Interest income                                            1
   Interest income - intercompany                           575
                                                     ----------
Net interest expense                                       (576)

Other expense
   Miscellaneous                                              -
   Royalties - intercompany                                 190
   Transaction gain/loss                                      -
                                                     ----------
Total other expense                                         190

Other income
   Royalties - intercompany                               3,500
   Dividends                                                  -
   Sale of assets                                             -
   Miscellaneous                                              -
                                                     ----------
Total other income                                        3,500
                                                     ----------
Net other expense                                        (3,310)
                                                     ----------
Income (loss) before Chapter 11 reorganization
   expenses and income taxes (benefit) and
   extraordinary items                                    4,836

Chapter 11 reorganization expenses                            -

Income tax expense (benefit)                              1,689

Extraordinary item - net of taxes                             -
                                                     ----------
Net Income (loss)                                        $3,147
                                                     ==========

                    WESTPOINT STEVENS, INC., I
                     Statement of Cash Flows
                  Month Ended February 28, 2005
                         (in thousands)

Cash flows from operations:
Net income (loss)                                        $3,147
Non-cash items
   Depreciation and amortization expense                    112
Working Capital Changes
   Decrease/(increase) - a/r (customers)                      -
   Decrease/(increase) - a/r (intercompany)              (4,709)
   Decrease/(increase) - inventories                       (947)
   Decrease/(increase) - other current assets                 -
   Decrease/(increase) - other non-current assets             -
   Increase/(decrease) - accounts payable (trade)           (89)
   Increase/(decrease) - a/p (intercompany)                   -
   Increase/(decrease) - accrued liabilities              2,484
   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:
   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                                       36
Change in cash                                               (2)
                                                     ----------
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. 42; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


WESTPOINT STEVENS: WP Stevens Stores' February Operating Report
---------------------------------------------------------------

                  WESTPOINT STEVENS STORES, INC.
                          Balance Sheet
                      At February 28, 2005
                         (in thousands)

                             Assets

Current Assets
   Cash and cash equivalents                             $1,140
   Short-term investments                                     -
   Accounts receivable - customers                           63
   Accounts receivable - intercompany                     3,195
   Total Inventories                                     19,098
   Prepaid expenses and other current assets                894
                                                      ---------
Total current assets                                     24,390

Total investments & other assets                              -
Goodwill                                                      -
Property, plant and equipment, net                        2,371
                                                      ---------
TOTAL ASSETS                                            $26,761
                                                      =========

            Liabilities and Stockholders' Equity (Deficit)

Liabilities Not Subject to Compromise
   Accounts payable - trade                                $377
   Accounts payable -intercompany                             -
   Other accrued liabilities                              1,736
   Deferred income taxes                                      -
   Pension and other liabilities                              -
                                                      ---------
Total Liabilities Not Subject to Compromise               2,113
                                                      ---------
Liabilities Subject to Compromise
   Accounts payable                                       1,677
                                                      ---------
Total Liabilities                                         3,790

Shareholders' Equity (Deficit)
   Equity of subsidiaries                                     -
   Common stock                                               1
   Capital surplus/Treasury Stock                        15,955
   Retained earnings (deficit)                            7,015
   Minimum pension liability adjustment                       -
   Other adjustments                                          -
   Unearned compensation                                      -
                                                      ---------
Stockholders' Equity (Deficit)                           22,971
                                                      ---------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)      $26,761
                                                      =========

                  WESTPOINT STEVENS STORES, INC.
                     Statement of Operations
                  Month Ended February 28, 2005
                         (in thousands)

Net sales                                                $5,748
Cost of goods sold                                        3,469
                                                      ---------
   Gross earnings                                         2,279

Selling and administrative expenses
   Selling expenses                                       1,895
   Warehousing and shipping                                 175
   Advertising                                              215
   Division administrative expense                          316
   MIS expense                                               54
   Corporate administrative expense                          84
                                                      ---------
Total selling and administrative expense                  2,739
Restructuring and impairment charge                           -
Goodwill impairment charge                                    -
                                                      ---------
   Operating earnings (loss)                               (460)

Interest expense
   Interest expense - outside                                 -
   Capitalized interest expense                               -
   Interest expense - intercompany                          155
   Interest income                                            -
   Interest income - intercompany                             -
                                                      ---------
Net interest expense                                        155

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                                     (615)

Chapter 11 reorganization expenses                            -
Income tax expense (benefit)                               (215)

Extraordinary item - net of taxes                             -
                                                      ---------
Net Income (loss)                                         ($400)
                                                      =========

                  WESTPOINT STEVENS STORES, INC.
                     Statement of Cash Flows
                  Month Ended February 28, 2005
                         (in thousands)

Cash flows from operations:
Net income (loss)                                         ($400)
Non-cash items
   Depreciation and amortization                             47
Working Capital Changes
   Decrease/(increase) - a/r (customers)                    (13)
   Decrease/(increase) - a/r (intercompany)                 878
   Decrease/(increase) - inventories                       (563)
   Decrease/(increase) - other current assets               (32)
   Decrease/(increase) - other non-current assets             -
   Increase/(decrease) - accounts payable (trade)           (62)
   Increase/(decrease) - a/p (intercompany)                   -
   Increase/(decrease) - accrued liabilities                178
   Increase/(decrease) - accrued interest payable             -
   Increase/(decrease) - pension & other liabilities          -
   Increase/(decrease) - deferred federal income tax          -
                                                      ---------
Total cash flows from operations                             33

Cash flows from investing activities
   Capital expenditures                                     (23)
   Transfers                                                  -
   Net proceeds from sale of assets                           -
                                                      ---------
Total cash flows from investing                             (23)

Cash flows from financing activities
    Increase/(decrease)- DIP Credit Agreement                 -
                                                      ---------
Total cash flows from financing                               -

Beginning cash balance                                    1,130
Change in cash                                               10
                                                      ---------
Ending cash balance                                      $1,140
                                                      =========

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. 42; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


WESTPOINT STEVENS: JP Stevens & Co.'s February Operating Report
---------------------------------------------------------------

                     J.P. STEVENS & CO., INC.
                          Balance Sheet
                      At February 28, 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
February 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. 42; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


WESTPOINT STEVENS: JP Stevens Enterprises' Feb. Operating Report
----------------------------------------------------------------

                  J.P. STEVENS ENTERPRISES, INC.
                          Balance Sheet
                      At February 28, 2005
                         (in thousands)

                             Assets

Current Assets
   Cash and cash equivalents                                $13
   Short-term investments                                     -
   Accounts receivable - customers, net                       -
   Accounts receivable - intercompany                    17,683
   Prepaid expenses and other current assets                  -
                                                      ---------
Total current assets                                     17,696

Total investments & other assets                              -
Goodwill                                                      -
                                                      ---------
TOTAL ASSETS                                            $17,696
                                                      =========

           Liabilities and Stockholders' Equity (Deficit)

Liabilities Not Subject to Compromise:
   Accounts payable - intercompany                            -
   Other accrued liabilities                               $386
   Deferred income taxes                                      -
   Pension and other liabilities                              -
                                                      ---------
Total Liabilities Not Subject to Compromise                 386

Liabilities Subject to Compromise                             -
                                                      ---------
Total Liabilities                                           386

Shareholders' Equity (Deficit)
   Equity of subsidiaries                                     -
   Common stock                                               2
   Capital surplus/Treasury Stock                             -
   Retained earnings (deficit)                           17,308
   Minimum pension liability adjustment                       -
   Other adjustments                                          -
   Unearned compensation                                      -
                                                      ---------
Stockholders' Equity (Deficit)                           17,310
                                                      ---------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)      $17,696
                                                      =========


                  J.P. STEVENS ENTERPRISES, INC.
                     Statement of Operations
                  Month Ended February 28, 2005
                         (in thousands)

Net sales                                                     -
Cost of goods sold                                            -
                                                      ---------
   Gross earnings                                             -

Selling and administrative expenses
   Selling expenses                                           -
   Warehousing and shipping                                   -
   Advertising                                                -
   Division administrative expense                            -
   MIS expense                                                -
   Corporate administrative expense                           -
                                                      ---------
Total selling and administrative expense                      -
Restructuring and impairment charge                           -
Goodwill impairment charge                                    -
                                                      ---------
   Operating earnings (loss)                                  -

Interest expense
   Interest expense - outside                                 -
   Capitalized interest expense                               -
   Interest expense - intercompany                            -
   Interest income                                            -
   Interest income - intercompany                            82
                                                      ---------
Net interest expense                                        (82)

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                                      272

Chapter 11 reorganization expenses                            -

Income tax expense (benefit)                                 95

Extraordinary item - net of taxes                             -
                                                      ---------
Net Income (loss)                                          $177
                                                      =========

                  J.P. STEVENS ENTERPRISES, INC.
                     Statement of Cash Flows
                  Month Ended February 28, 2005
                          (in thousands)

Cash flows from operations:
Net income (loss)                                          $177
Non-cash items
   Depreciation and amortization                              -
Working Capital Changes
   Decrease/(increase) - a/r (intercompany)                (269)
   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                 95
   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
   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                                       10
Change in cash                                                3
                                                      ---------
Ending cash balance                                         $13
                                                      =========

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. 42; Bankruptcy Creditors' Service, Inc.,
215/945-7000)


US AIRWAYS: Posts $119 Million Net Loss in February 2005
--------------------------------------------------------

                      US Airways Group, Inc.
                    Consolidated Balance Sheet
                      At February 28, 2005
                          (in thousands)

Current Assets:
   Cash and cash equivalents                           $405,534
   Restricted cash                                      111,817
   Receivables, net                                     305,400
   Materials and supplies, net                          165,504
   Prepaid expenses and other                           171,362
                                                     ----------
      Total Current Assets                            1,159,617

Property and Equipment:
   Flight equipment                                   3,299,622
   Ground property and equipment                        362,397
   Less accumulated depreciation and amortization      (341,825)
                                                     ----------
                                                      3,403,041

   Purchase deposits for flight equipment                82,847
                                                     ----------
      Total Property and Equipment                    3,403,041

Other Assets:
   Goodwill                                           2,489,638
   Other intangibles, net                               526,954
   Restricted cash                                      622,269
   Other assets, net                                     91,509
                                                     ----------
      Total Other Assets                              3,730,370
                                                     ----------
Total Assets                                         $8,293,028
                                                     ==========

Current Liabilities:
   Current maturities of long-term debt
   and capital lease obligations                       $741,397
   Accounts payable                                     404,972
   Traffic balances payable and unused tickets          955,874
   Accrued aircraft rent                                  9,616
   Accrued salaries, wages and vacation                 167,813
   Other accrued expenses                               301,809
                                                     ----------
      Total Current Liabilities                       2,581,481

Noncurrent Liabilities and Deferred Credits:
  Long-term debt and capital lease
  obligations, net of current maturities                 73,760
  Deferred gains and credits, net                        42,762
  Postretirement benefits other than pensions             1,906
  Employee benefit liabilities and other                241,975
                                                     ----------
Total Noncurrent Liabilities and Deferred Credits       360,674

Liabilities Subject to Compromise                     5,064,674

Commitments and Contingencies:

Stockholders' Deficit:
   Class A Common Stock                                  50,616
   Class B Common Stock                                   5,000
   Paid-in capital                                      410,133
   Accumulated deficit                                 (183,870)
   Common stock held in treasury, at cost                (2,815)
   Deferred compensation                                (10,647)
   Accumulated other comprehensive income                18,054
                                                     ----------
Total Stockholders' Deficit                             286,470
                                                     ----------
Total Liabilities & Stockholders' Equity (Deficit)   $8,293,028
                                                     ==========

                     US Airways Group, Inc.
               Consolidated Statement of Operations
                  Month ended February 28, 2005
                         (in thousands)

Operating Revenues:
   Passenger transportation                            $443,460
   Cargo and freight                                      7,567
   Other                                                 54,973
                                                     ----------
Total Operating Revenues                                506,000

Operating Expenses:
   Personnel costs                                      156,440
   Aviation fuel                                        114,405
   US Airways Express capacity purchases                 62,403
   Aircraft rent                                         36,089
   Other rent and landing fees                           46,763
   Selling expenses                                      39,398
   Aircraft maintenance                                  29,163
   Depreciation and amortization                         18,764
   Other                                                 88,664
                                                     ----------
Total Operating Expenses                                591,664

Operating Loss                                          (85,664)

Other Income (Expense):
   Interest income                                          827
   Interest expense, net                                (26,737)
   Reorganization items, net                             (8,247)
   Other, net                                               599
                                                     ----------
      Other Income (Expense), Net                       (33,558)

Loss Before Income Taxes                               (119,222)
   Income Tax Benefit                                         0
                                                     ----------
Net Loss                                              ($119,222)
                                                     ==========

                      US Airways Group, Inc.
               Consolidated Statement of Cash Flows
                  Month ended February 28, 2005
                         (in thousands)

Cash flows from operating activities:
   Net cash used for operating activities
   before reorganization items                         ($27,802)
   Reorganization items, net                             (2,754)
                                                     ----------
      Net cash used for operating activities            (30,556)

Cash flows from investing activities:
   Capital expenditures and purchase deposits
   for flight equipment, net                             (1,825)
   Proceeds from dispositions of property                 1,049
   Increase in restricted cash                          (78,886)
   Other                                                      0
                                                     ----------
      Net cash used for investing activities            (76,012)

Cash flows from financing activities:
   Proceeds from issuance of long-term debt               5,724
   Principal payments on long-term debt
   and capital lease obligations                        (36,685)
                                                     ----------
      Net cash used for financing activities            (30,961)


Net decrease in Cash and cash equivalents              (137,529)
                                                     ----------
Cash and cash equivalents at beginning of period        543,063
                                                     ----------
Cash and cash equivalents at end of period             $405,534
                                                     ==========

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. 87; Bankruptcy Creditors' Service, Inc., 215/945-7000)

                          *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
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are not intended to reflect actual trades.  Prices for actual
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Nothing in the TCR constitutes an offer or solicitation to buy or
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public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
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Don't be fooled.  Assets, for example, reported at historical cost
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For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                          *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania,
USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L.
Metzler, Emi Rose S.R. Parcon, Rizande B. Delos Santos, Jazel P.
Laureno, Cherry Soriano-Baaclo, Marjorie Sabijon, Terence Patrick
F. Casquejo, Jason A. Nieva, Christian Q. Salta and Peter A.
Chapman, Editors.

Copyright 2005.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
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