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/raid1/www/Hosts/bankrupt/TCR_Public/050709.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, July 9, 2005, Vol. 9, No. 161 Headlines CATHOLIC CHURCH: Spokane's May 2005 Monthly Operating Report CATHOLIC CHURCH: Tucson's May 2005 Monthly Operating Report FRIEDMAN'S INC: Files May 2005 Monthly Operating Report KAISER ALUMINUM: Posts $3.4 Million Net Loss in May 2005 OWENS CORNING: Posts $2.9 Million Net Loss in April 2005 PARMALAT: Releases Monthly Operating Report Ended May 31, 2005 PILLOWTEX CORP: May 2005 Cash Receipts & Disbursements Report SAINT VINCENTS: Files Consolidated Balance Sheet as of Apr. 30 SOLUTIA INC: Earns $2 Million of Net Income in May 2005 THAXTON GROUP: Posts $69.9 Million Net Loss in May 2005 TOWER AUTOMOTIVE: Posts $17.7 Million Net Loss in May 2005 US AIRWAYS: Posts $39.7 Million Net Loss in May 2005 USG CORP: Earns $31.9 Million of Net Income in May 2005 WESTPOINT STEVENS: Posts $22 Million Net Loss in May 2005 WESTPOINT STEVENS: WP Stevens I Earns $3MM of Net Income in May WESTPOINT STEVENS: WP Stevens Stores' May 2005 Operating Report WESTPOINT STEVENS: JP Stevens's May 2005 Monthly Operating Report WESTPOINT STEVENS: JP Stevens Enterprises' May Operating Report ********* CATHOLIC CHURCH: Spokane's May 2005 Monthly Operating Report ------------------------------------------------------------ Catholic Diocese of Spokane Balance Sheet As of May 31, 2005 ASSETS Total Cash Accounts $3,612,009 Total Investments 3,909,814 Total Property 495,004 Total Loans Receivable 3,064,160 Total Interfund Loan Receivable 396,887 Total Accounts Receivable 108,997 Total Land and Buildings & Equip 2,272,137 Total Prepaid Expenses 19,863 -------------- Total Assets $13,878,872 ============== LIABILITIES AND NET ASSETS Liabilities Total Deposits Payable 5,378,797 Total Interest Payable 0 Total Accounts Payable (39,385) Net Assets Total Unrestricted - Fund Balance (4,098,054) Total Unrestricted Net Assets (4,098,054) T.R. - Guse Grant Funds 221,122 T.R. - Bishop's School Grants Funds (88,898) Total Replacement Fund 9,702,553 Total Diocesan D&L Funding 2,176,115 Total Guatemala Funds 612,341 Temporarily Restricted 146,504 -------------- Total liabilities & net assets $13,878,872 ============== Catholic Diocese of Spokane Income and Expense Statement For the month ending May 31, 2005 Total Income $238,021 Total Expenses 522,680 -------------- Net Excess or Deficit $284,658 ============== Catholic Diocese of Spokane Statement of Cash Receipts and Disbursements May 1, 2005 to May 31, 2005 Total Cash Receipts $411,992 Total Cash Disbursements ($617,316) A full-text copy of the Diocese of Spokane's May 2005 monthly operating report is available for free at: http://bankrupt.com/misc/spokane_mor_may.pdf 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. 32; Bankruptcy Creditors' Service, Inc., 215/945-7000) CATHOLIC CHURCH: Tucson's May 2005 Monthly Operating Report ----------------------------------------------------------- The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole (Unaudited) Statement of Financial Condition As of May 31, 2005 ASSETS Total Diocese-Owned ----- ------------- Cash on hand $1,600 $1,500 Cash in Banks 572,808 448,748 Cash Equivalents 3,448,976 2,723,629 Accounts receivable, net 1,441,148 1,441,148 Allowance for doubtful accounts (1,206,572) (1,206,572) Grants receivable 251,500 251,500 Pledges receivable 6,000 6,000 A/R held in trust for others 63,220 0 Due from administered funds 70,119 70,119 Prepaid expenses & other assets 430,311 430,311 Investments in businesses 5,364,160 4,714,110 Corp. & Gov't. bond investments 808,588 533,588 Investment in BPIC 80,850 80,850 Notes receivable, net 2,070,932 299,305 Allowance for doubtful notes receivable (329,289) (5,411) Assets securing 2002 settlement 3,000,000 3,000,000 Construction in progress 48,867 48,867 Land, buildings, and equipment 516,438 516,438 Assets held for sale 60,226 60,226 Land held for future parish sites 817,460 817,460 -------------- -------------- $17,517,242 $14,231,816 ============== ============== LIABILITIES AND NET ASSETS Liabilities: Accounts payable - post 974,273 974,273 Accounts payable - pre 43,255 43,255 Accrued expenses - post 68,838 68,838 Accrued expenses - pre 157,682 157,682 Interfunds payable 70,119 0 Accrued insurance claims 283,674 283,674 Unsecured long-term debt - pre 2,061,455 2,061,455 Unsecured long-term debt - post 100,000 100,000 Unrestricted parish deposits 6,963,926 6,962,867 Restricted parish deposits 2,712,542 0 Secured long-term debt 2,660,793 2,660,793 Custodial funds 501,706 0 -------------- -------------- Total Liabilities 16,598,263 13,312,837 -------------- -------------- Net Assets: Unrestricted/temporarily restricted (989,909) (989,909) Permanently restricted 1,908,888 1,908,888 -------------- -------------- Total liabilities & net assets $17,517,242 $14,231,816 ============== ============== The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole Statement of Operations and Charges in Net Assets May 1, 2005 through May 31, 2005 Revenues Contributions, grants and bequests $53,628 Chancery assessment 110,245 Priests salary subsidy 17,747 Fees for services 15,467 Advertising revenue 8,001 Retreat fees 1,478 Rental Income 4,397 Insurance 60,221 Investment Income 43,969 Miscellaneous 1,213 -------------- Total Support & Revenue 316,366 Expense Program Services: Archives 1,984 Catholic Commitments & Social Services 656 Evangelization & Hispanic Ministry 7,605 Catechesis Office 7,010 Formation Office 6,239 Department of Catholic Schools 16,369 Clergy, religious & seminarian advancement 15,759 Parish Assistance 22,135 Catholic Social Mission 3,886 Supporting Services: Office of Bishop Emeritus 1,827 Offices of the Bishop, et al. 33,615 Office of Women Religious 1,260 General & Administrative 1,545 Fiscal & Employee Services 42,330 Office of Child, Adolescent, et al. Protection 11,315 Communications & Community Relations 26,538 Property Management 32,396 Insurance Administration 14,288 Reorganization 450,545 Imputed interest on settlement 14,095 Provision for doubtful accounts 5,833 Depreciation 3,692 -------------- Total Expenses 720,922 -------------- Excess (deficiency) of revenues over expenses ($404,556) ============== The Roman Catholic Church of the Diocese of Tucson an Arizona Corporation Sole Current Month's Receipts and Disbursements May 1, 2005 through May 31, 2005 Cash and Bank Balance: Beginning of Month $479,850 Receipts Cash Sales 66,108 Accounts Receivable -- Prepetition 68,293 Accounts Receivable -- Postpetition 375,107 Loans and Advances 0 Sale of Assets 0 Transfers in from other accounts 123,804 Other -- Custodial Funds 1,327 Other -- Payroll Reimbursements 0 Credit Adjustments 833 -------------- Total Receipts 635,472 Disbursements: Business -- Ordinary Operations 468,675 Capital Improvements 0 Prepetition Debt 0 Transfers to other DIP Accounts 123,804 Other -- Custodial Funds 0 Other -- TRF to Wells Fargo Investment 0 Other -- Payroll Reimbursement 3,839 Reorganization Expenses: Attorney Fees 65,013 Accountant Fees 5,242 Other Professional Fees 0 Other (Advertising) 0 U.S. Trustee Quarterly Fee 0 Court Costs 0 -------------- Total Disbursements 666,574 -------------- Cash & Bank Balance -- End of Month $448,748 ============== The Roman Catholic Church of the Diocese of Tucson filed for chapter 11 protection (Bankr. D. Ariz. Case No. 04-04721) on September 20, 2004, and delivered a plan of reorganization to the Court on the same day. Susan G. Boswell, Esq., Kasey C. Nye, Esq., at Quarles & Brady Streich Lang LLP, represent the Tucson Diocese. (Catholic Church Bankruptcy News, Issue No. 32; Bankruptcy Creditors' Service, Inc., 215/945-7000) FRIEDMAN'S INC: Files May 2005 Monthly Operating Report ------------------------------------------------------- On June 27, 2005, Friedman's Inc. and its debtor-affiliates filed their consolidated monthly operating reports for the period May 1, 2005, through May 28, 2005, with the U.S. Bankruptcy Court for the Southern District of Georgia. At May 28, 2005, Friedman's Inc. and its debtor-affiliates' financial reports shows: Beginning Cash Balance $10,111,704 Total Cash Receipts 60,943,411 Total Cash Disbursements 66,984,646 Ending Cash Balance $4,070,869 A full-text copy of Friedman's Inc. and its debtor-affiliates' Monthly Operating Reports for the period ended May 28, 2005, is available at no charge at http://ResearchArchives.com/t/s?57 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. KAISER ALUMINUM: Posts $3.4 Million Net Loss in May 2005 -------------------------------------------------------- Kaiser Aluminum Corporation -- All Debtors Unaudited Balance Sheets As of May 31, 2005 (In Thousands) ASSETS Cash $63,769 Receivables: Trade 93,052 Other 13,561 --------- Total Receivables 106,613 Inventories 115,046 Prepaid expenses and other current assets 13,281 --------- Total current assets 298,709 Investments in and advances to subsidiaries 18,773 Intercompany receivables/payables, net (4,455) Property, plant, and equipment - net 213,161 Deferred income taxes - Restricted proceeds from sale of commodity interests 673,972 Other assets 1,013,869 --------- Total Assets $2,214,029 ========= LIABILITIES & STOCKHOLDERS' EQUITY Liabilities not subject to compromise: Accounts Payable $56,012 Accrued interest 856 Accrued salaries, wages and related expenses 51,979 Accrued post retirement benefit - current - Other accrued liabilities 78,565 Payable to affiliates 13,614 Long term debt - current portion 1,192 --------- Total current liabilities 202,218 Long-term liabilities 35,416 Accrued postretirement benefit obligation - Long-term debt 2,812 Liabilities subject to compromise 3,979,578 Minority interests 655 Stockholders' equity: Preference stock - Common stock 789 Additional capital 538,009 Accumulated deficit - As of filing date (946,931) Accumulated deficit - Post filing date (1,590,363) Accumulated other comprehensive income (loss) (8,154) Note receivable from parent - --------- Total Liabilities & Stockholders' Equity $2,214,029 ========= Kaiser Aluminum Corporation -- All Debtors Unaudited Statements of Operations For the Month Ending May 31, 2005 (In Thousands) Net Sales $88,587 Costs and expenses: Cost of products sold 76,188 Depreciation & amortization 1,798 Selling, administrative, R&D and general 4,976 Other operating charges (benefits), net - --------- Total costs and expenses 82,962 --------- Operating income (loss) 5,625 Other income (expense): Interest expenses, net (356) Reorganization items (3,755) Other-net (338) --------- Income (loss) before income taxes and minority interest 1,176 (Provision) benefit for income taxes (4,586) Minority interests - Equity in income (loss) of subsidiaries (23) --------- Net income (loss) ($3,433) ========= Kaiser Aluminum Corporation -- All Debtors Schedule of Consolidated Cash Receipts and Disbursements For the Month Ending May 31, 2005 (In Thousands) Receipts: Trade Receivables KACC Receivables $67,304 KAII Receivables 15,901 --------- Total Trade Receivables 83,205 Proceeds from Asset Sales 1,467 COBRA receipts 420 Proceeds from Hedging Settlement 37 --------- Total Receipts 85,129 Disbursements: Inventory/Raw Materials 39,754 Capital Expenditures 1,896 Maintenance, Materials, etc. 3,238 Freight 4,817 Utilities/Energy 3,690 Hourly Payroll 6,313 Salaried Payroll 3,755 VEBA Advances 70 Medical - Current Employees 1,900 Workmen's Compensation 2,389 Corporate General and Administrative 466 JV Fundings - Alumina 3,801 JV Fundings - Primary, Net of Minority Interest 7,109 Other Disbursements 2,638 --------- Total Operating and G&A Disbursements 81,836 Reorganization Items 7,857 --------- Total Disbursements 89,693 --------- Net Cash Flow ($4,564) Beginning Bank Cash Balances 65,843 --------- Ending Bank Cash Balances 61,279 Reconciling Items 2,490 --------- Ending Book Cash Balances $63,769 ========= Headquartered in Foothill Ranch, California, Kaiser Aluminum Corporation -- http://www.kaiseraluminum.com/-- is a leading producer of fabricated aluminum products for aerospace and high- strength, general engineering, automotive, and custom industrial applications. The Company filed for chapter 11 protection on February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a number of its commodity businesses during course of its cases. Corinne Ball, Esq., at Jones Day, represents the Debtors in their restructuring efforts. On June 30, 2004, the Debtors listed $1.619 billion in assets and $3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 72; Bankruptcy Creditors' Service, Inc., 215/945-7000) OWENS CORNING: Posts $2.9 Million Net Loss in April 2005 -------------------------------------------------------- Owens Corning and Subsidiaries Consolidated Balance Sheets As of April 30, 2005 (In Thousands) Current Assets: Cash and cash equivalents $584,594 Receivables 427,002 Receivables-Inter-company 980,631 Inventories 227,527 Insurance for Asbestos Litigation Claims 0 Deferred Income Taxes 484 Income Tax Receivable 3,325 Other Current Assets 20,849 ----------- Total Current Assets $2,244,412 Other Assets: Insurance for Asbestos Litigation Claims 4,220 Restricted Cash 188,149 Restricted cash and securities 0 Deferred Income Taxes 991,117 Goodwill 48,568 Investment in Affiliates 30,569 Investment in Subsidiaries 2,022,050 Notes Receivable - Intercompany 5,270 Other Non-current Assets 480,966 ----------- Total Other Assets 3,770,909 Plant & Equipment: Land 35,164 Buildings & Leasehold Improvements 550,341 Machinery & Equipment 2,165,700 Construction in Progress 113,674 Less: Accumulated Depreciation 1,583,692 ----------- Net Plant and Equipment 1,281,187 ----------- TOTAL ASSETS $7,296,508 =========== Liabilities not Subject to Compromise: Accounts Payable & Accrued Liabilities 486,002 Inter-company Liabilities 937,013 Short-term debt 0 Long-term debt - current portion 1,367 ----------- Total Current Liabilities 1,424,382 Long-Term Debt 9,776 Other Employee Benefits Liability 215,265 Pension Plan Liability 617,698 Other Liability 152,629 ----------- Total Non-Current Liabilities 985,592 ----------- Total Postpetition Liabilities 2,419,750 Prepetition Liabilities: Accounts Payable and Accrued Liabilities 262,177 Other Employee Benefits Liability 201,971 Pension Plan Liability 0 Debt-US Bank Credit Facility 1,450,986 Debt-Bonds & Other 1,503,880 Asbestos-Related Liability 6,166,734 Inter-company 2,452,666 Other 0 ----------- Total Prepetition Liabilities 12,038,414 Total Liabilities 14,458,164 Minority Interest 0 Stockholder's Equity: Common Stock 697,298 Retained Earnings (Deficit) (7,508,711) Accumulated Comprehensive Income (Loss) (4,643) Other (345,600) ----------- Net Stockholder's Equity (7,161,656) ----------- TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $7,296,508 =========== Owens Corning and Subsidiaries Consolidated Statements of Operations For the Month Ended April 30, 2005 (In Thousands) Net sales $353,592 Cost of Sales 281,271 ----------- Gross Margin 72,321 Operating Expenses: Marketing and Administrative Expenses 35,205 Science and Technology Expenses 2,409 Provision for Asbestos Litigation Claims 0 Insider Compensation 805 Restructure Costs 0 Other Expenses 10,518 ----------- Income (Loss) from Operations 23,384 Other Expenses: Cost of Borrowed Funds 322 Other 0 ----------- Income (Loss) Before Reorganization Items 23,062 Reorganization Items: Professional Fees 3,567 U.S. Trustee Quarterly Fees 52 Interest Earned on Accumulated Cash from Chapter 11 (1,077) (Gain) Loss from sale of equipment 0 (Gain) Loss from Settlement of Liabilities 0 Other Reorganization Expenses 3,230 ----------- Total Reorganization Expenses 5,772 ----------- Income (Loss) Before Income Taxes 17,290 Provision (credit) for Income Tax 20,178 ----------- Income (Loss) Before Minority Interest and Equity in Net Income (Loss) of Affiliates (2,888) Minority interest 0 Equity in net income (loss) of affiliates (18) ----------- Net Income (Loss) ($2,906) =========== Owens Corning and Subsidiaries Consolidated Statements of Cash Receipts & Disbursements For the Month Ended April 30, 2005 (In Thousands) Cash, Beginning of Month $586,727 Receipts: Customer Receipts 321,689 Inter-company Sales 5,577 Loans and Advances 0 Sale of Assets 0 Other Receipts 5,474 Inter-company Transfers 93,795 Transfers from DIP 158,691 ----------- Total Receipts $585,227 Disbursements: Net Payroll 31,456 Payroll Taxes 279 Sales Use & Other Taxes 9,875 Inventory Purchases 128,509 Insurance 2,551 Administrative & Selling 60,134 Other 104,381 Inter-company Transfers 83,979 Transfers to DIP 158,691 Professional Fees 7,439 U.S. Trustee Quarterly Fees 65 Court costs 0 Adjustment 0 ----------- Total Disbursements $587,360 Net Cash Flow (2,133) ----------- Cash -- End of Month $584,594 =========== Headquartered in Toledo, Ohio, Owens Corning -- http://www.owenscorning.com/-- manufactures fiberglass insulation, roofing materials, vinyl windows and siding, patio doors, rain gutters and downspouts. The Company filed for chapter 11 protection on October 5, 2000 (Bankr. Del. Case. No. 00-03837). Mark S. Chehi, Esq., at Skadden, Arps, Slate, Meagher & Flom, represents the Debtors in their restructuring efforts. At Sept. 30, 2004, the Company's balance sheet shows $7.5 billion in assets and a $4.2 billion stockholders' deficit. The company reported $132 million of net income in the nine-month period ending Sept. 30, 2004. (Owens Corning Bankruptcy News, Issue No. 111; Bankruptcy Creditors' Service, Inc., 215/945-7000) PARMALAT: Releases Monthly Operating Report Ended May 31, 2005 -------------------------------------------------------------- Parmalat Finanziaria S.p.A. in Extraordinary Administration reports the operating and financial results of the Parmalat Group at May 31, 2005. Scope of Consolidation The scope of consolidation has been defined using principles that are consistent with those adopted in preparing the statement of income and balance sheet at December 31, 2004. Companies that are subject to restrictions on their management as a result of local bankruptcy proceedings that have 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 April (in EUR millions) Revenues -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 1,484.4 1,484.4 1,530.8 Non Core Activities 124.4 112.4 107.5 -------- ------------- ------- Total 1,608.7 1,596.8 1,638.4 ======== ============= ======= EBITDA -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 101.3 101.3 115.6 Non Core Activities (1.2) (0.9) 9.6 -------- ------------- ------- Subtotal 100.1 100.4 125.1 Proceedings costs (24.3) (24.3) (24.5) -------- ------------- ------- Total 75.8 76.1 100.6 ======== ============= ======= % of Revenues -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 6.8 6.8 7.5 Non Core Activities (1.0) (0.8) 8.9 -------- ------------- ------- Subtotal 6.2 6.3 7.6 Total 4.7 4.8 6.1 ======== ============= ======= * 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 healthy 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 In the five months ended May 31, 2005, the Group's Core Businesses had revenues of EUR1,530.8 million, a gain of 3.1% over the EUR1,484.4 million reported at the end of May 2004. EBITDA also improved, growing from EUR101.3 million (6.8% of revenues) at May 31, 2004 to EUR115.6 million (7.5% of revenues) this year. These data do not reflect the impact of the nonrecurring charges related to the extraordinary administration proceedings, which amounted to about EUR24.5 million(EUR24.3 million in 2004). Monthly revenues (difference between the cumulative figures at May 31 and April 30) totaled EUR315.4 million, about the same as in the corresponding period last year (EUR319.9 million), but EBITDA decreases slightly, falling from EUR26.8 million (8.4% of revenues) in May 2004 to EUR25.9 million (8.2% of revenues) in the same months this year. [Parmalat provides an] analysis of the Group's results in the main geographic regions in which it operates. -- Italy A small reduction (-1.7%) in net revenues for the first five months of the year (EUR564.7 million compared with EUR574.2 million in 2004) produced a relatively large decrease in EBITDA, which fell to EUR38.7 million, or 3.2% less than the EUR40.0 million earned in the same period last year. However, the ratio of EBITDA to net revenues was virtually unchanged. May revenues and EBITDA totaled EUR119.2 million and EUR8.0 million, respectively (EUR117.7 million and EUR8.2 million, respectively, in 2004). If the data for the affiliate Boschi S.p.A. in Extraordinary Administration are excluded, overall revenues and EBITDA show a modest improvement. The Group has launched a program that will restore forward momentum to its Italian operations by focusing on the fresh-milk segment of the market, implementing a more aggressive and competitive marketing strategy, and introducing the Jeunesse line of functional products. In the main business segments in which the Group operates, market shares have been improving steadily, rebounding to the levels attained prior to the start of the Extraordinary Administration proceedings. -- Spain Cumulative results through May 31, 2005 show that the Spanish operations were able to improve their profitability significantly compared with 2004, even though revenues decreased to EUR87.9 million (EUR91.0 million at May 31, 2004). EBITDA were up both in absolute terms (EUR6.5 million, compared with EUR5.9 million) and as a percentage of revenues (7.4%, compared with 6.4%). In May 2005, net revenues and EBITDA improved, compared with the previous four months of the year, totaling EUR19.8 million and EUR1.8 million, respectively. The gain in monthly revenues reflects the start of promotional and advertising campaigns for products that are traditionally affected by seasonal factors (e.g., flavored milk beverages) and products that are being launched or repositioned (e.g., Santal Top fruit juices and Active Soja). At the EBITDA level, the negative impact of higher promotional and advertising costs were quickly offset by a rise in unit sales and a reduction in variable production costs. Nevertheless, the Group's companies in Spain are still faced with the challenges discussed in previous press releases, which include an overall decrease in consumer demand and an extremely competitive market environment (especially in the yogurt and dessert businesses). -- South Africa In the first five months of 2005, the South African operations booked revenues of EUR113.2 million, for a gain 21.6% compared with the EUR93.1 million reported for the same period last year. EBITDA were also up, rising from EUR8.1 million (8.8% of revenues) to EUR11.4 million (10.0% of revenues). Data for May 2005 show revenues of EUR23.6 million and EBITDA of EUR2.8 million (11.9% of revenues). Both figures represent a slight improvement over the previous months of the year. Higher unit sales of all products (except pasteurized milk), coupled with a reduction in general expenses and other overhead, are the main reasons for this improvement. A 4.4% rise in the value of the South African rand versus the euro (based on the average exchange rate for the January-May 2005 period) was also a factor. -- Venezuela The Venezuelan operations reported cumulative revenues of EUR59.0 million, or 5.9% less than the EUR62.7 million booked in the first five months of 2004. Nevertheless, EBITDA were up sharply, rising from EUR1.7 million (2.7% of revenues) to EUR5.5 million (9.2% of revenues). In May 2005, revenues totaled EUR11.9 million, slightly more than in any of the preceding months of the year, and EBITDA amounted to EUR1.0 million (8.4% of revenues). The improvements achieved in Venezuela were large enough to offset the negative impact of a slide in the value of the bolivar (-18.8% compared with the average exchange rate for the period) and are measurable even when the data are translated into the Group's reporting currency. These gains, which reflect in part a reduction in raw material costs, are attributable primarily to the restructuring and reorganization programs that are being implemented. However, Venezuela continues to experience a period of major social unrest. -- Canada Revenues for the first five months of 2005 were significantly higher (+7.7%) than in the same period last year, rising from EUR464.6 million to EUR500.3 million. EBITDA jumped 30.1%, increasing from EUR27.2 million (5.8% of revenues) to EUR35.4 million (7.1% of revenues). Data for May 2005 show revenues of EUR94.2 million and EBITDA of EUR8.1 million (8.6% of revenues), down compared with April 2005. Higher unit sales for several product categories and a reduction in distribution expenses and overhead are the main reasons for the improved performance in the first five months of 2005, compared with the corresponding period a year ago. The Canadian dollar appreciated versus the euro during the first five months of 2005, with the average exchange rate rising by 2.3% compared with the same period in 2004. -- Australia Cumulative data at May 31, 2005 confirm that the trend of the previous months is continuing, with the Australian operations achieving modest improvements in revenues (EUR160.7 million, up 3.7% from EUR154.9 million in the same period last year) and in EBITDA, which increased both in absolute terms (up from EUR11.7 million to EUR12.5 million) and as a percentage of revenues (from 7.6% to 7.8%). Revenues for the month of May totaled EUR35.5 million. EBITDA, which amounted to EUR2.7 million, were lower than in the previous month. Higher revenues and margins generated by sales of pasteurized milk, UHT cream and yogurt account for most of the improvement. The Australian dollar continued to lose value versus the euro but at a slower rate than in the previous month (-2.1% compared with the average exchange rate for the period). Non-core Businesses In the first five months of 2005, the Group's Non-core Businesses reported revenues of EUR107.5 million, a decrease of 4.4% from pro forma revenues of EUR112.4 million in the same period last year. However, even though net revenues were down, chiefly as a result of the divestiture of the Mexican operations in 2004, EBITDA improved from a negative EUR0.9 million to a positive EUR9.6 million, due mainly to the successful implementation of cost cutting programs by the Group's other operations. Revenues for the month of May were EUR22.0 million, up slightly compared with May 2004. NET FINANCIAL POSITION Highlights (in EUR millions) Balance Balance Balance as at as at as at 12/31/04 04/30/05 05/31/05 -------- -------- -------- Short term financial assets (375.6) (354.5) (354.6) broken down as: Financial assets not held as fixed assets (0.4) (0.3) (0.6) Liquid assets (375.2) (354.3) (354.0) Financial accrued income and prepaid expenses (incl. intra-Group) (66.0) (67.5) (70.1) -------- -------- -------- Total short-term financial assets (441.6) (422.1) (424.7) ======== ======== ======== Financial debts 11,455.3 11,471.7 11,570.6 Financial accrued expenses & deferred income 14.3 7.9 12.1 -------- -------- -------- Total financial liabilities 11,469.6 11,479.7 11,582.6 Indebtedness owed to lenders outside the Group/ (Financial assets) of companies consolidated line-by-line 11,028.0 11,057.6 11.157.9 Indebtedness owed by companies consolidated line-by-line to companies that are parties to local composition-with-creditors proceedings 316.6 325.2 246.0 Indebtedness/(Financial assets) of companies consolidated line-by-line 11,344.6 11,382.8 11,403.9 Indebtedness/(Financial assets) of companies not consolidated line-by-line 7.6 7.5 8.0 -------- -------- -------- Total indebtedness/ (financial assets) 11,352.2 11,390.3 11,411.9 ======== ======== ======== At May 31, 2005, the indebtedness owed to lenders outside the Group by companies consolidated line by line totaled EUR11,157.9 million, or EUR129.9 million more than at December 31, 2004. The main reasons for this increase are: * A reduction in liquid assets, which occurred because Parmalat S.p.A. in Extraordinary Administration underwrote a capital increase carried out by a Portuguese affiliate and repaid certain debt installments upon maturity; * The reclassification from Indebtedness owed by companies consolidated line by line to companies that are parties to local composition with creditors proceedings to Indebtedness owed to lenders outside the Group of the indebtedness payable to the three USA Dairy companies in Chapter 11 following the recent signing of a settlement agreement; * A weakening of the euro versus the reporting currencies of Group companies in South Africa and Canada and against the U.S. dollar. In May 2005, the indebtedness of companies consolidated line by line increased by EUR100.3 million compared with the previous month (EUR11,057.6 million) due to the reclassification from another net financial position account and partial settlement of indebtedness owned to the three USA Dairy companies in Chapter 11 following the recent signing of a settlement agreement. Foreign exchange fluctuations were also a factor. 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. Some of these borrowings are secured by guarantees provided by Parmalat S.p.A. in Extraordinary Administration and Parmalat Finanziaria S.p.A. in Extraordinary Administration in the amount of EUR1,685.2 million. The indebtedness owed by the Group to companies in special proceedings that are not consolidated line by line amounted to EUR246.0 million. The change, compared with the balance owed at December 31, 2004 (EUR316.6 million) reflects mainly the reclassification of the [] indebtedness payable to the three companies in Chapter 11 and changes in foreign exchange translations. 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. in Extraordinary Administration 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 as at as at as at 12/31/04 04/30/05 05/31/05 -------- -------- -------- Companies in EA subject to proposed composition with creditors 9,813.0 9,828.4 9,896.5 Other companies in EA 89.7 88.8 87.9 Other companies 1,125.3 1,140.4 1,173.6 -------- -------- -------- Total indebtedness/ (financial assets) 11,028.0 11,057.6 11,157.9 ======== ======== ======== 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. A significant development is the change in indebtedness following the signing of a settlement with USA Dairy. Liquid assets held by the companies included in the Proposal of Composition with Creditors were up slightly, rising from EUR234.1 million at April 30, 2005 to EUR236.0 million at May 31, 2005. These liquid assets include EUR6.0 million in deposits from subsidiaries, offset by the recognition of an equal liability. Other Companies At May 31, 2005, 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, totaled EUR1,173.6 million (including EUR705.3 million in medium-long term debt), about the same as at April 30, 2005, when it amounted to EUR1,140.4 million. The settlement with USA Dairy and foreign exchange fluctuations account for the increase. 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 as at as at as at 12/31/04 04/30/05 05/31/05 -------- -------- -------- Short-term financial assets (24.4) (23.8) (24.4) broken down as: Intra-Group loans receivable (17.1) (17.1) (17.1) Financial assets not held as fixed assets - - - Liquid assets (7.4) (6.7) (7.3) Financial accrued income and prepaid expenses (including intra-Group) - (0.2) (0.3) -------- -------- -------- Total short-term financial assets (24.4) (24.0) (24.6) ======== ======== ======== Financial liabilities (including intra-Group) 1,286.0 1,289.0 1,289.0 broken down as: Intra-Group loans payable 1,019.5 1,022.5 1,023.3 Other financial debts 266.5 266.5 266.5 Financial accrued expenses and deferred income (including intra-Group) - 0.1 0.1 -------- -------- -------- Total financial liabilities 1,286.0 1,289.1 1,290.0 -------- -------- -------- Total indebtedness/ (financial assets) 1,261.6 1,265.1 1,265.3 ======== ======== ======== The increase in indebtedness reflects the receipt of a new loan from Parmalat S.p.A. in Extraordinary Administration. Liquid assets include EUR6.0 million in deposits from subsidiaries, offset by the recognition of an equal liability. Parmalat SpA (Amounts in millions of Euros) Balance Balance Balance as at as at as at 12/31/04 04/30/05 05/31/05 -------- -------- -------- Short-term financial assets (152.7) (139.7) (143.3) broken down as: Intra-Group loans receivable (32.3) (32.4) (33.9) Financial assets not held as fixed assets - - - Liquid assets (120.4) (107.3) (109.5) Financial accrued income and prepaid expenses (including intra-Group) - (0.1) (0.1) -------- -------- -------- Total short-term financial assets (152.7) (139.8) (143.5) ======== ======== ======== Financial liabilities (including intra-Group) 3,766.7 3,766.7 3,765.7 broken down as: Intra-Group loans payable 997.2 997.2 936.6 Other financial debts 2,769.6 2,769.6 2,829.0 Financial accrued expenses and deferred income (including intra-Group) - - - -------- -------- -------- Total financial liabilities 3,766.7 3,766.7 3,765.7 -------- -------- -------- Total indebtedness/ (financial assets) 3,614.0 3,627.0 3,622.2 ======== ======== ======== The reclassification of the indebtedness owed to Farmland Dairies LLC from Intra-Group loans payable to Loans payable to lenders outside the Group produced no change in total indebtedness. The change in indebtedness is mainly the result of a reduction in short-term financial assets. More specifically, intra-Group loans receivable increased by EUR1.5 million due mainly to the granting of a loan to Parmalat Finanziaria S.p.A. in Extraordinary Administration Liquid assets increased by EUR2.2 million. Eurolat SpA (Amounts in millions of Euros) Balance Balance Balance as at as at as at 12/31/04 04/30/05 05/31/05 -------- -------- -------- Short-term financial assets (13.5) (14.2) (8.9) broken down as: Intra-Group loans receivable (2.2) (1.9) (1.5) Financial assets not held as fixed assets - - - Liquid assets (11.3) (12.3) (7.4) Financial accrued income and prepaid expenses (including intra-Group) - (0.0) (0.1) -------- -------- -------- Total short-term financial assets (13.5) (14.2) (9.0) ======== ======== ======== Financial liabilities (including intra-Group) 188.2 188.2 188.2 broken down as: Intra-Group loans payable 43.8 43.8 43.8 Other financial debts 144.4 144.4 144.4 Financial accrued expenses and deferred income (including intra-Group) - - - -------- -------- -------- Total financial liabilities 188.2 188.2 188.2 -------- -------- -------- Total indebtedness/ (financial assets) 174.7 174.0 179.3 ======== ======== ======== The decrease in liquid assets reflects mainly payments of supplier invoices and of the company's pro rata share of the costs incurred in connection with the extraordinary administration proceedings. Lactis SpA (Amounts in millions of Euros) Balance Balance Balance as at as at as at 12/31/04 04/30/05 05/31/05 -------- -------- -------- Short-term financial assets (4.4) (2.7) (4.8) broken down as: Intra-Group loans receivable - - - Financial assets not held as fixed assets - - - Liquid assets (4.4) (2.7) (4.8) Financial accrued income and prepaid expenses (including intra-Group) (0.0) (0.0) (0.0) -------- -------- -------- Total short-term financial assets (4.4) (2.7) (4.8) ======== ======== ======== Financial liabilities (including intra-Group) 18.6 18.6 18.6 broken down as: Intra-Group loans payable 8.6 8.6 8.6 Other financial liabilities 10.0 10.0 10.0 Financial accrued expenses and deferred income (including intra-Group) - 0.0 0.0 -------- -------- -------- Total financial liabilities 18.6 18.6 18.6 -------- -------- -------- Total indebtedness/ (financial assets) 14.2 15.9 13.8 ======== ======== ======== No significant changes have occurred since the previous month. Significant Events May 27 Consob resolution authorizing the publication of the Prospectus filed by Parmalat S.p.A. in connection with a transaction involving an investment solicitation and the listing of shares and warrants of Parmalat S.p.A. May 28 Publication of the Prospectus filed by Parmalat S.p.A. May 31 Settlement with the three U.S. companies in Chapter 11 (Parmalat USA Corporation, Farmland Dairies LLC and Farmland Stremicks Sub LLC) and their respective bankruptcy trustees and creditors (US Dairy). June 15 Completion of the paperwork needed to secure mutual recognition of the Prospectus, the publication of which has been authorized by the Consob. The countries that are expected to allow mutual recognition are: the Netherlands, Sweden, Denmark, Germany, the United Kingdom and Luxembourg. June 16 Filing by the Italian bankruptcy judges (Giudici Delegati) of a Decree with the Office of the Clerk of the Bankruptcy Court of Parma regarding the upcoming vote on the Parmalat Proposal of Composition with Creditors and the voting method that should be used. 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 debt. The Bankruptcy Court confirmed the U.S. Debtors' Plan of Reorganization on March 7, 2005. (Parmalat Bankruptcy News, Issue Nos. 57; Bankruptcy Creditors' Service, Inc., 215/945-7000) PILLOWTEX CORP: May 2005 Cash Receipts & Disbursements Report ------------------------------------------------------------- As per agreement with the Office of the United States Trustee, Pillowtex Corporation and its debtor-affiliates will provide a report on their Consolidated Balance Sheets and Consolidated Statements of Operations on a quarterly basis. Pillowtex, et al. Actual Cash Flow For the Month of May 2005 Accounts Receivable Collections $4,000 Brown & Joseph/Atwell Fees (4,000) Accounts Receivable Personnel (12,000) Inventory Bulk Sales - Property Tax Related to Asset Sale (319,000) Property (Net) (61,000) Miscellaneous Proceeds - ---------- Total Proceeds 74,000 Prepetition Cure Cost of Capital Leases - Balance of 2003 Personal Property Tax - Alliance Street Production - Interest Expense (Term and Revolver) - Idle Facility Cost (45,000) Electric Demand Charge - Retail Store Operating Costs - Warehousing, Shipping & Billing - Freight & Duty - Manufacturing - Inventory Cleanup - Accrued Employee Expenses - Critical Vendor Payments - Continuing Medical - Terminated Medical - Product Liability/D&O/Workers Comp. Insurance - Corporate 61,000 Severance/Retention 34,000 Warehouse Vacation Pay - SB Capital Estate Charge Back - Early Termination Fee - DIP Fees - Professional Fees 483,000 Miscellaneous Expenses 38,000 ---------- Total Expenses 281,000 ---------- Net Cash Flow ($355,000) ========== Pillowtex, et al. Disbursement Report For Month Ended May 31, 2005 Net Payroll & Payroll Taxes Paid $189,368 Sales, Use & Other Taxes Paid 318,958 Inventory Purchases - Interest on Long Term Debt - Secured/Rental/Lease - Utilities 3,302 Insurance - Administrative 35,297 Professional Fees 484,325 U.S. Trustee's Fees - Others 25,150 ----------- Total for U.S. Trustee Fees $1,056,400 =========== Headquartered in Dallas, Texas, Pillowtex Corporation -- http://www.pillowtex.com/-- sold top-of-the-bed products to virtually every major retailer in the U.S. and Canada. The Company filed for Chapter 11 protection on November 14, 2000 (Bankr. Del. Case No. 00-4211), emerged from bankruptcy under a chapter 11 plan, and filed a second time on July 30, 2003 (Bankr. Del. Case No. 03-12339). The second chapter 11 filing triggered sales of substantially all of the Company's assets. David G. Heiman, Esq., at Jones Day, and William H. Sudell, Jr., Esq., at Morris Nichols Arsht & Tunnel, represent the Debtors. On July 30, 2003, the Company listed $548,003,000 in assets and $475,859,000 in debts. (Pillowtex Bankruptcy News, Issue No. 81; Bankruptcy Creditors' Service, Inc., 215/945-7000) SAINT VINCENTS: Files Consolidated Balance Sheet as of Apr. 30 -------------------------------------------------------------- Saint Vincents Catholic Medical Centers of New York Condensed Consolidated Balance Sheets As of April 30, 2005 (Unaudited) ASSETS Cash and cash equivalents $4,655,000 Investments 9,431,000 Assets designated for self-insurance funds - short-term investments at market 30,640,000 Assets whose use is limited - collateralized assets 37,162,000 Patients accounts receivable, less allowance for doubtful accounts 257,900,000 Accounts receivable other 45,986,000 Other current assets 35,887,000 --------------- Total current assets 421,661,000 Other: Depreciation reserve funds and collateralized assets 117,166,000 Assets designated for self-insurance - investments at market 36,675,000 Assets whose use is limited - investments at market 42,408,000 Other non-current assets 12,499,000 Land, buildings and equipment net of accumulated depreciation 341,522,000 --------------- Total Assets $971,931,000 =============== LIABILITIES AND NET ASSETS Current: Current installments of long term debt $330,080,000 Loan Payable - Pool Securitization -- HFG Loan 45,301,000 Repurchase agreement -- Accrued salaries and payroll taxes withheld 69,063,000 Current estimated liability for self-insurance 30,640,000 Accounts payable and accrued expenses 229,422,000 Estimated retroactive payables to third parties, net 97,824,000 --------------- Total current liabilities 802,330,000 Other: Long-term debt, excluding current installments 46,147,000 Estimated liability for self-insurance 140,080,000 Other non-current liabilities 113,718,000 299,945,000 Net assets: Unrestricted (185,226,000) Temporarily Restricted 30,531,000 Permanently Restricted 24,351,000 --------------- Total net assets (130,344,000) --------------- Total liabilities and net assets $971,931,000 =============== Headquartered in New York, New York, Saint Vincent Catholic Medical Centers -- http://www.svcmc.org/-- the largest Catholic healthcare providers in New York State, operate hospitals, health centers, nursing homes and a home health agency. The hospital group consists of seven hospitals located throughout Brooklyn, Queens, Manhattan, and Staten Island, along with four nursing homes and a home health care agency. The Company and six of its affiliates filed for chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951). Gary Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, represent the Debtors in their restructuring efforts. As of Apr. 30, 2005, they listed $972 million in total assets and $1 billion in total debts. (Saint Vincent Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., 215/945-7000) SOLUTIA INC: Earns $2 Million of Net Income in May 2005 ------------------------------------------------------- Solutia Chapter 11 Debtors Unaudited Statement of Consolidated Financial Position As of May 31, 2005 ASSETS Current Assets Cash $12,000,000 Trade Receivables, net 177,000,000 Account Receivables-Unconsolidated Subsidiaries 50,000,000 Inventories 151,000,000 Other Current Assets 62,000,000 -------------- Total Current Assets 452,000,000 Property, Plant and Equipment, net 681,000,000 Investments in Subsidiaries and Affiliates 520,000,000 Intangible Assets, net 101,000,000 Other Assets 86,000,000 -------------- TOTAL ASSETS $1,840,000,000 ============== LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities Accounts Payable $148,000,000 Short Term Debt 310,000,000 Other Current Liabilities 154,000,000 -------------- Total Current Liabilities 612,000,000 Other Long-Term Liabilities 207,000,000 -------------- Total Liabilities not Subject to Compromise 819,000,000 Liabilities Subject to Compromise 2,276,000,000 Shareholders' Deficit (1,255,000,000) -------------- TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $1,840,000,000 ============== Solutia Chapter 11 Debtors Unaudited Consolidated Statement of Operations For the Month Ended May 31, 2005 Total Net Sales $203,000,000 Total Cost Of Goods Sold 183,000,000 -------------- Gross Profit 20,000,000 Total MAT Expense 18,000,000 -------------- Operating Income 2,000,000 Equity Earnings from Affiliates 5,000,000 Interest Expense, net (5,000,000) Other Income, net 3,000,000 Reorganization Items: Professional fees (3,000,000) -------------- Income Before Taxes 2,000,000 Income Taxes - -------------- NET INCOME $2,000,000 ============== 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 Richard M. Cieri, Esq., at Kirkland & Ellis. (Solutia Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-7000) THAXTON GROUP: Posts $69.9 Million Net Loss in May 2005 ------------------------------------------------------- On June 22, 2005, The Thaxton Group filed its monthly operating report for May 2005 with the U.S. Bankruptcy Court for the District of Delaware. The company reported a cumulative net loss of $69,940,350 on $85,874,262 revenue for the period from Oct. 17, 2003 thru May 31, 2005. At May 31, 2005, the Company's balance sheet reflects: Total Assets $242,874,387 Total Liabilities 236,983,112 Stockholders' Equity $5,891,275 A full-text copy of Thaxton Group's May 2005 Monthly Operating Report is available at no charge at: http://ResearchArchives.com/t/s?53 Headquartered in Lancaster, South Carolina, The Thaxton Group, Inc., is a diversified consumer financial services company. The Company filed for Chapter 11 protection on October 17, 2003 (Bankr. Del. Case No. 03-13183). The Debtors are represented by Michael G. Busenkell, Esq., and Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell. TOWER AUTOMOTIVE: Posts $17.7 Million Net Loss in May 2005 ---------------------------------------------------------- Tower Automotive, Inc. and Subsidiaries Unaudited Consolidated Balance Sheets As of May 31, 2005 (In Thousands) CURRENT ASSETS: Cash and cash equivalents $2,858 Accounts receivable, net 263,547 Inventories 86,135 Prepaid tooling and other 43,569 ---------- TOTAL CURRENT ASSETS 396,109 ---------- Property, plant and equipment, net 630,622 Investment in joint ventures 6 Investment in subsidiaries 346,782 Inter-company receivables 402,794 Goodwill 326,309 Other assets, net 106,248 ---------- TOTAL ASSETS $2,208,870 ========== CURRENT LIABILITIES NOT SUBJECT TO COMPRISE: Current maturities of long-term debt & capital $3,127 lease obligations Accounts payable 107,214 Accrued liabilities 211,967 ---------- TOTAL CURENT LIABILITIES 322,308 ---------- Liabilities subject to comprise 1,126,511 Non-Current Liabilities Not Subject to Compromise: Long-term debt, net of current maturities 57,121 DIP borrowings, net of current maturities 518,288 Other non-current liabilities 183,088 ---------- TOTAL LIABILITIES 2,207,316 STOCKHOLDERS' EQUITY 1,554 ---------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $2,208,870 ========== Tower Automotive, Inc. and Subsidiaries Unaudited Statement of Operations May 1 to 31, 2005 (In Thousands) Revenues $177,894 Cost of sales 170,223 ---------- Gross profit 7,671 Selling, general and administrative expenses 9,421 Restructuring and asset impairment charges, net 271 ---------- Operating income (loss) (2,021) Interest expense 6,342 Interest income (1,916) Chapter 11 and related reorganization items 8,916 ---------- Income (loss) before provision for income taxes, equity in earnings of joint ventures and minority interest (15,363) Provision (benefit) for income taxes 2,373 Income (loss) before equity in earnings of joint Ventures and minority interest (17,736) Equity in earnings of joint ventures, net of tax 3 ---------- NET LOSS ($17,733) ========== Tower Automotive, Inc. and Subsidiaries Unaudited Statement of Cash Flows May 1 to 31, 2005 (In Thousands) OPERATING ACTIVITIES: Net loss ($17,733) Adjustments required to reconcile net loss to net cash provided by (used in) operating activities: Chapter 11 & related reorganization expenses 8,916 Payments of Chapter 11 and related reorganization expenses (5,314) Depreciation 9,808 Deferred compensation 74 Equity in earnings of joint ventures, net (3) Change in working capital and other operating items 1,517 ---------- Net cash provided by operating activities (2,735) ---------- INVESTING ACTIVITIES: Capital expenditures (975) Proceeds from sale of fixed assets - Other - ---------- Net cash used in investing activities (975) ---------- FINANCING ACTIVITIES: Proceeds from prepetition borrowings - Repayments of prepetition borrowings - Borrowings from DIP credit facility 89,000 Repayments of borrowings from DIP credit facility (83,001) Net proceeds from issuance of common stock - ---------- Net cash provided by financing activities 5,999 ---------- Net Change in cash and cash equivalents 2,289 ---------- Cash and Cash Equivalents, beginning of period 569 Cash and Cash Equivalents, end of period $2,858 ========== Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The Company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05- 10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $787,948,000 in total assets and $1,306,949,000 in total debts. (Tower Automotive Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service, Inc., 215/945-7000) US AIRWAYS: Posts $39.7 Million Net Loss in May 2005 ---------------------------------------------------- US Airways Group, Inc. Consolidated Balance Sheet At May 31, 2005 (in thousands) Current Assets: Cash and cash equivalents $559,285 Restricted cash 115,723 Receivables, net 319,412 Materials and supplies, net 168,273 Prepaid expenses and other 189,958 ------------ Total Current Assets 1,352,651 Property and Equipment: Flight equipment 3,297,108 Ground property and equipment 364,861 Less accumulated depreciation and amortization (386,078) ------------ 3,275,891 Purchase deposits for flight equipment 73,550 ------------ Total Property and Equipment 3,349,441 Other Assets: Goodwill 2,489,638 Other intangibles, net 519,709 Restricted cash 626,585 Other assets, net 82,005 ------------ Total Other Assets 3,717,937 ------------ Total Assets $8,420,029 ============ Current Liabilities: Current maturities of long-term debt and capital lease obligations $842,791 Accounts payable 430,868 Traffic balances payable and unused tickets 1,061,585 Accrued aircraft rent 60,290 Accrued salaries, wages and vacation 191,888 Other accrued expenses 311,995 ------------ Total Current Liabilities 2,899,417 Noncurrent Liabilities and Deferred Credits: Long-term debt and capital lease obligations, net of current maturities 76,741 Deferred gains and credits, net 41,191 Postretirement benefits other than pensions 1,906 Employee benefit liabilities and other 270,852 ------------ Total Noncurrent Liabilities and Deferred Credits 390,690 Liabilities Subject to Compromise 5,799,301 Commitments and Contingencies Stockholders' Equity: Class A Common Stock 50,616 Class B Common Stock 5,000 Paid-in capital 410,150 Accumulated deficit (1,137,099) Common stock held in treasury, at cost (2,815) Deferred compensation (7,750) Accumulated other comprehensive income 12,519 ------------ Total Stockholders' Deficit (669,379) ------------ Total Liabilities & Stockholders' Equity $8,420,029 ============ US Airways Group, Inc. Consolidated Statement of Operations Month ended May 31, 2005 (in thousands) Operating Revenues: Passenger transportation $567,209 Cargo and freight 8,145 Other 49,942 ------------ Total Operating Revenues 625,296 Operating Expenses: Personnel costs 140,073 Aviation fuel 141,364 US Airways Express capacity purchases 76,538 Aircraft rent 38,514 Other rent and landing fees 45,909 Selling expenses 34,729 Aircraft maintenance 37,708 Depreciation and amortization 17,539 Other 103,368 ------------ Total Operating Expenses 635,742 Operating Loss (10,446) Other Income (Expense): Interest income 1,657 Interest expense, net (26,221) Reorganization items, net (4,221) Other, net (469) ------------ Other Income (Expense), Net (29,254) Loss Before Income Taxes (39,700) Income Tax Benefit 0 ------------ Net Loss ($39,700) ============ US Airways Group, Inc. Consolidated Statement of Cash Flows Month ended May 31, 2005 (in thousands) Net cash from operating activities before reorganization items $34,193 Reorganization items, net (2,076) ------------ Net cash provided by operating activities 32,117 Cash flows from investing activities: Capital expenditures and purchase deposits for flight equipment, net (502) Proceeds from dispositions of property 1,582 Increase in restricted cash (9,317) ------------ Net cash provided by investing activities (8,237) Cash flows from financing activities: Proceeds from issuance of long-term debt 0 Proceeds from DIP Financing 0 Principal payments on long-term debt and capital lease obligations (270) ------------ Net cash used in financing activities (270) Net increase in Cash and cash equivalents 23,610 ------------ Cash and cash equivalents at beginning of period 535,675 ------------ Cash and cash equivalents at end of period $559,285 ============ 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. 97; Bankruptcy Creditors' Service, Inc., 215/945-7000) USG CORP: Earns $31.9 Million of Net Income in May 2005 ------------------------------------------------------- USG Corporation, et al. Consolidated Balance Sheet 31-May-2005 __________________________ ___________ Assets: Cash and cash equivalents $484,070,000 Marketable Securities 188,824,000 Restricted Cash 67,553,000 Receivables 437,584,000 Inventories 280,753,000 Income taxes receivable 22,966,000 Deferred income taxes 20,175,000 Other current assets 47,766,000 ------------- Total current assets 1,549,691,000 Property, plant and equipment, net 1,614,161,000 Marketable Securities 269,630,000 Deferred income taxes 128,183,000 Goodwill 64,245,000 Other assets 362,512,000 ------------- Total Assets $3,988,422,000 ============= Liabilities and Stockholders' Equity: Accounts payable $243,737,000 Accrued expenses 177,339,000 Taxes on income 60,454,000 ------------- Total current liabilities 481,530,000 Other liabilities 396,215,000 Liabilities subject to compromise 2,241,201,000 Stockholders' Equity: Common stock 4,998,000 Treasury stock (253,677,000) Capital received in excess of par value 103,892,000 Accumulated other comprehensive income/(loss) 14,141,000 Retained earnings 1,000,122,000 ------------- Total stockholders' equity 869,476,000 ------------- Total Liabilities and Stockholders' Equity $3,988,422,000 ============= USG Corporation, et al. Month Ending Consolidated Income Statement 31-May-2005 _____________________________ ____________ Net sales $380,881,000 Cost of products sold 306,321,000 Selling and administrative expenses 24,464,000 Chapter 11 reorganization expenses (1,970,000) Provision for restructuring expenses - Interest expense 325,000 Interest income (152,000) Other (income)/expense, net (197,000) ------------- Earnings/(loss) before income taxes 52,090,000 Income taxes (benefit) 20,227,000 ------------- Net Earnings/(loss) $31,863,000 ============= Headquartered in Chicago, Illinois, USG Corporation -- http://www.usg.com/-- through its subsidiaries, is a leading manufacturer and distributor of building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The Company filed for chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). David G. Heiman, Esq., and Paul E. Harner, Esq., at Jones Day represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $3,252,000,000 in assets and $2,739,000,000 in debts. (USG Bankruptcy News, Issue No. 90; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: Posts $22 Million Net Loss in May 2005 --------------------------------------------------------- WESTPOINT STEVENS, INC. Balance Sheet At May 31, 2005 (in thousands) Assets Current Assets Cash and cash equivalents $1,323 Short-term investments - Accounts receivable, net 151,504 Total inventories 273,045 Prepaid & other current assets 15,251 ---------- Total current assets 441,123 Total investments & other assets 92,908 Goodwill - Property, plant and equipment, net 459,084 ---------- TOTAL ASSETS $993,115 ========== Liabilities and Shareholders' Equity (Deficit) Liabilities Not Subject to Compromise: Senior Credit Facility 438,208 DIP Credit Agreement 63,190 Second Lien Facility 165,000 Accrued interest payable 1,311 Accounts payable - trade 36,922 Accounts payable - intercompany 176,054 Other payables and accrued liabilities 104,758 Deferred income taxes - Pension and other liabilities 148,469 ---------- Total liabilities not subject to compromise 1,133,912 Liabilities Subject to Compromise: Senior Notes 1,000,000 Deferred financing fees (3,598) Accrued interest payable on Senior Notes 36,313 Accounts payable 27,563 Other payables and accrued liabilities 8,232 Pension and other liabilities 15,474 ---------- Total liabilities subject to compromise 1,083,984 ---------- Total Liabilities 2,217,896 Shareholders' Equity (Deficit) Equity of subsidiaries (123,757) Common stock 711 Capital Surplus/Treasury Stock 41,122 Retained earnings (deficit) (1,032,657) Minimum pension liability adjustment (109,403) Other adjustments (797) Unearned compensation - ---------- Total Shareholders' Equity (Deficit) (1,224,781) ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) $993,115 ========== WESTPOINT STEVENS, INC. Statement of Operations Month Ended May 31, 2005 (in thousands) Total sales $78,728 Cost of sales 77,853 ---------- Gross profit 875 Selling and administrative expenses Selling expense 3,479 Warehousing and shipping 4,638 Advertising 385 Division administrative expense 905 MIS expense 1,309 Corporate administrative expense 1,232 ---------- Total selling and administrative expense 11,948 Restructuring and impairment charge 593 Fixed asset impairment charge - ---------- Profit/(loss) from operations (11,666) ---------- Interest expense Interest expense - outside 6,861 Capitalized interest expense - Interest expense - intercompany 607 Interest income 4 Interest income - intercompany - ---------- Net interest expense 7,464 Other expense Miscellaneous 341 Royalties - intercompany 3,500 Transaction gain/loss - ---------- Total other expense 3,841 Other income Royalties - intercompany - Dividends - Sale of assets 1,668 Miscellaneous 13 ---------- Total other income 1,681 ---------- Net other expense 2,160 ---------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary item (21,290) Chapter 11 reorganization expenses 1,065 Income taxes (benefit) (397) ---------- Income (loss) before extraordinary item (21,958) Extraordinary item - net of taxes - ---------- Net income (loss) ($21,958) ========== WESTPOINT STEVENS, INC. Statement of Cash Flows Month Ended May 31, 2005 (in thousands) Cash Flows from Operations: Net income (loss) ($21,958) Equity adjustments (1,926) Non-cash items Depreciation and amortization expense 5,938 Gain/(Loss) on sale of assets (1,668) Changes in Assets and Liabilities Decrease/(increase) -- accounts receivable 15,160 Decrease/(increase) -- inventories 511 Decrease/(increase) -- other current assets 4,144 Decrease/(increase) -- other noncurrent assets and liabilities 185 Increase/(decrease) -- accounts payable (trade) (6,981) Increase/(decrease) -- a/p (intercompany) 4,885 Increase/(decrease) -- accrued liabilities (8,089) Increase/(decrease) -- accrued interest payable (923) Increase/(decrease) -- pension & other liabilities 847 Increase/(decrease) -- deferred income tax - ---------- Total Cash Flows from Operations (9,875) Cash Flows from Investing Decrease/(increase) -- short term investments - Capital expenditures (410) Net proceeds from sale of assets 1,852 ---------- Total Cash Flows from Investing 1,442 Cash Flows from Financing Increase/(decrease) -- DIP credit agreement 8,801 ---------- Total Cash Flows from Financing 8,801 Beginning Cash Balance 955 Change in Cash 368 ---------- Ending Cash Balance $1,323 ========== 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. 50; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: WP Stevens I Earns $3MM of Net Income in May --------------------------------------------------------------- WESTPOINT STEVENS, INC., I Balance Sheet At May 31, 2005 (in thousands) Assets Current Assets Cash and cash equivalents $53 Short-term investments - Accounts receivable - customers - Accounts receivable - intercompany 33,268 Total inventories 8,331 Prepaid & other current assets - ---------- Total current assets 41,652 Total investments & other assets 9,447 Goodwill - Property, plant and equipment, net 11,477 ---------- TOTAL ASSETS $62,576 ========== Liabilities and Shareholders' 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 $640 Accounts payable - intercompany - Other payables and accrued liabilities 9,565 Deferred income taxes - Pension and other liabilities - ---------- Total liabilities not subject to compromise 10,205 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 15,088 SHAREHOLDERS' EQUITY (DEFICIT) Equity of subsidiaries - Common stock 1 Capital Surplus/Treasury Stock 70,559 Retained earnings (deficit) (23,072) Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Total Shareholders' Equity (Deficit) 47,488 ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) $62,576 ========== WESTPOINT STEVENS, INC., I Statement of Operations Month Ended May 31, 2005 (in thousands) Total sales $3,495 Cost of sales 2,426 ---------- Gross profit 1,069 Selling and administrative expenses Selling expense 4 Warehousing and shipping 140 Advertising - Division administrative expense - MIS expense - Corporate administrative expense 230 ---------- Total selling and administrative expense 374 Restructuring and impairment charge - Goodwill impairment charge - ---------- Profit/(loss) from operations 695 Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany - Interest income 1 Interest income - intercompany 671 ---------- Net interest expense (672) Other expense Miscellaneous - Royalties - intercompany 190 Transaction gain/loss - ---------- Total other expense 190 Other income Royalties - intercompany 3,522 Affiliate Income - Dividends - Sale of assets - Miscellaneous - ---------- Total other income 3,522 ---------- Net other expense (3,332) ---------- Income (loss) before reorganization expenses and income taxes (benefit) and extraordinary item 4,699 Reorganization expenses - Income taxes (benefit) 1,645 ---------- Income (loss) before extraordinary item 3,054 Extraordinary item - net of taxes - ---------- Net income (loss) $3,054 ========== WESTPOINT STEVENS, INC., I Statement of Cash Flows Month Ended May 31, 2005 (in thousands) Cash Flows from Operations: Net income (loss) $3,054 Non-cash items Depreciation and amortization expense 113 Changes in Assets and Liabilities Decrease/(increase) -- a/r (customers) - Decrease/(increase) -- a/r (intercompany) (5,050) Decrease/(increase) -- inventories (1,070) Decrease/(increase) -- other current assets - Decrease/(increase) -- other noncurrent assets - Increase/(decrease) -- accounts payable (trade) 261 Increase/(decrease) -- a/p (intercompany) - Increase/(decrease) -- accrued liabilities 2,571 Increase/(decrease) -- accrued interest payable - Increase/(decrease) -- pension and other liabilities - Increase/(decrease) -- deferred federal income tax - ---------- Total Cash Flows from Operations (121) Cash Flows from Investing Decrease/(increase) -- short term investments - Capital expenditures - Net proceeds from sale of assets - ---------- Total Cash Flows from Investing - Cash Flows from Financing Increase/(decrease) -- DIP credit agreement - Increase/(decrease) -- Senior Notes - ---------- Total Cash Flows from Financing - Beginning Cash Balance 174 Change in Cash (121) ---------- Ending Cash Balance $53 ========== 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. 50; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: WP Stevens Stores' May 2005 Operating Report --------------------------------------------------------------- WESTPOINT STEVENS STORES, INC. Balance Sheet At May 31, 2005 (in thousands) Assets Current Assets Cash and cash equivalents $1,506 Short-term investments - Accounts receivable - customers 113 Accounts receivable - intercompany 1,372 Total Inventories 20,424 Prepaid expenses and other current assets 1,100 ---------- Total current assets 24,515 Total investments & other assets - Goodwill - Property, plant and equipment, net 2,302 ---------- TOTAL ASSETS $26,817 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Accounts payable - trade $348 Accounts payable -intercompany - Other payables and accrued liabilities 2,944 Deferred income taxes - Pension and other liabilities - ---------- Total Liabilities Not Subject to Compromise 3,292 ---------- Liabilities Subject to Compromise Accounts payable 1,679 ---------- Total Liabilities 4,971 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 1 Capital surplus/Treasury Stock 15,955 Retained earnings (deficit) 5,890 Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Stockholders' Equity (Deficit) 21,846 ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $26,817 ========== WESTPOINT STEVENS STORES, INC. Statement of Operations Month Ended May 31, 2005 (in thousands) Total sales $5,990 Cost of goods sold 3,644 ---------- Gross earnings 2,346 Selling and administrative expenses Selling expenses 1,669 Warehousing and shipping 211 Advertising 357 Division administrative expense 288 MIS expense 54 Corporate administrative expense 85 ---------- Total selling and administrative expense 2,664 Restructuring and impairment charge - Goodwill impairment charge - ---------- Profit/(loss) from operations (318) Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany 154 Interest income - Interest income - intercompany - ---------- Net interest expense 154 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 (472) Chapter 11 reorganization expenses - Income tax expense (benefit) (164) Extraordinary item - net of taxes - ---------- Net Income (loss) ($308) ========== WESTPOINT STEVENS STORES, INC. Statement of Cash Flows Month Ended May 31, 2005 (in thousands) Cash flows from operations: Net income (loss) ($308) Non-cash items Depreciation and amortization 48 Working Capital Changes Decrease/(increase) - a/r (customers) (5) Decrease/(increase) - a/r (intercompany) 657 Decrease/(increase) - inventories 162 Decrease/(increase) - other current assets (293) Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) (165) Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities 321 Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - ---------- Total cash flows from operations 417 Cash flows from investing activities Capital expenditures (57) Transfers - Net proceeds from sale of assets - ---------- Total cash flows from investing (57) Cash flows from financing activities Increase/(decrease)- DIP Credit Agreement - ---------- Total cash flows from financing - Beginning cash balance 1,146 Change in cash 360 ---------- Ending cash balance $1,506 ========== 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. 50; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: JP Stevens's May 2005 Monthly Operating Report ----------------------------------------------------------------- J.P. STEVENS & CO., INC. Balance Sheet At May 31, 2005 (in thousands) Assets Current Assets Cash and cash equivalents - Short-term investments - Accounts receivable - customers - Accounts receivable - intercompany $110,749 Total inventories - Prepaid & other current assets - ---------- Total Current assets 110,749 Total investments & other assets 2,697 Goodwill - Property, plant and equipment, net - ---------- TOTAL ASSETS $113,446 ========== Liabilities and Shareholders' Equity (Deficit) Liabilities Not Subject to Compromise: Senior Credit Facility - DIP Credit Agreement - Long-term debt classified as current - Accounts receivable - intercompany - Accrued interest payable - Accounts payable - trade - Accounts payable - intercompany - Other payables and accrued liabilities - Deferred income taxes - Pension and other liabilities - ---------- Total liabilities not subject to compromise - Liabilities Subject to Compromise: Senior Notes - Deferred financing fees - Accrued interest payable on Senior Notes - Accounts payable - Other payables and accrued liabilities - Pension and other liabilities - ---------- Total liabilities subject to compromise - ---------- Total Liabilities - 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 - --------- Total Shareholders' Equity (Deficit) 113,446 --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) $113,446 ========= J.P. Stevens & Co., Inc., reports no income and cash flow for May 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. 50; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: JP Stevens Enterprises' May Operating Report --------------------------------------------------------------- J.P. STEVENS ENTERPRISES, INC. Balance Sheet At May 31, 2005 (in thousands) Assets Current Assets Cash and cash equivalents $30 Short-term investments - Accounts receivable - customers, net - Accounts receivable - intercompany 18,133 Prepaid expenses and other current assets - ---------- Total current assets 18,163 Total investments & other assets - Goodwill - ---------- TOTAL ASSETS $18,163 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise: Accounts payable - intercompany - Other payables and accrued liabilities $198 Deferred income taxes - Pension and other liabilities - ---------- Total Liabilities Not Subject to Compromise 198 Liabilities Subject to Compromise - ---------- Total Liabilities 198 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 2 Capital surplus/Treasury Stock - Retained earnings (deficit) 17,963 Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Stockholders' Equity (Deficit) 17,965 ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $18,163 ========== J.P. STEVENS ENTERPRISES, INC. Statement of Operations Month Ended May 31, 2005 (in thousands) Total sales - Cost of goods sold - ---------- Gross earnings - Selling and administrative expenses Selling expenses $2 Warehousing and shipping - Advertising - Division administrative expense - MIS expense - Corporate administrative expense - ---------- Total selling and administrative expense 2 Restructuring and impairment charge - Goodwill impairment charge - ---------- Profit/(loss) from operations (2) Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany - Interest income - Interest income - intercompany 90 ---------- Net interest expense (90) Other expense Miscellaneous - Royalties - intercompany - Transaction gain/loss - ---------- Total other expense - Other income Royalties - intercompany 200 Dividends - Sale of assets - Miscellaneous - ---------- Total other income 200 ---------- Net other expense (200) ---------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items 288 Chapter 11 reorganization expenses - Income tax expense (benefit) 288 Extraordinary item - net of taxes - ---------- Net Income (loss) $288 ========== J.P. STEVENS ENTERPRISES, INC. Statement of Cash Flows Month Ended May 31, 2005 (in thousands) Cash flows from operations: Net income (loss) $288 Non-cash items Depreciation and amortization - Working Capital Changes Decrease/(increase) - a/r (intercompany) (280) 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 - Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - ---------- Total cash flows from operations 8 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 22 Change in cash 8 ---------- Ending cash balance $30 ========== 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. 50; Bankruptcy Creditors' Service, Inc., 215/945-7000) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. 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