TCR_Public/050730.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 30, 2005, Vol. 9, No. 179

                          Headlines

COVANTA WTE: Earns $251,835 of Net Income in May 2005
MERIDIAN AUTOMOTIVE: Files Amended May 2005 Operating Report
MERIDIAN AUTOMOTIVE: Posts $21.5 Million Net Loss in June 2005
MIRANT CORP: Posts $76.3 Million Net Loss in May 2005
MIRANT CORP: MAGi Posts $73.6 Million Net Loss in May 2005

RELIANCE GROUP: Posts $2.5 Million Net Loss in June 2005


                          *********


COVANTA WTE: Earns $251,835 of Net Income in May 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 May 31, 2005

                              ASSETS

Cash                                                   $406,125
Inventory                                                     -
Accounts receivable                                  14,488,685
Land                                                          -
Machinery, fixtures and equipment                    46,861,610
Restricted funds                                         77,387
Other current assets                                    104,977
Other assets                                            109,082
                                                   ------------
Total assets                                        $62,047,866
                                                   ============

               LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Postpetition Liabilities:
Subject to postpetition collateral
   or financing order                                         -
Advances from parent and affiliates                  $7,203,017
Accounts payable and other liabilities                2,917,047
                                                   ------------
Total postpetition liabilities                       10,120,064

Prepetition Liabilities:
Project Debt                                         19,337,332
Advances from parent and affiliates                  26,235,087
Liabilities Subject to Compromise                     1,825,969
Taxes/Others                                                  -
                                                   ------------
Total Prepetition Liabilities                        47,398,388
                                                   ------------

Equity:
Capital stock                                                 -
Capital surplus                                               -
Retained earnings - prepetition                       8,343,700
Retained earnings - postpetition                     (3,814,286)
                                                   ------------
Total Equity                                          4,529,414
                                                   ------------
Total Liabilities and Equity                        $62,047,866
                                                   ============

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

INCOME:
Service, electric and construction revenue             $772,336
Waste-to-Energy project debt revenue                    400,562
                                                   ------------
   Total Income                                       1,172,898

EXPENSES:
Operating and construction costs                        548,111
Waste-to-Energy project debt expense                    103,202
Depreciation and amortization expense                   189,750
Other - Net                                                   -
Cost allocations from parent & affiliates                80,000
Gain on sale of businesses                                    -
                                                   ------------
   Total Expenses                                       921,063
                                                   ------------
NET OPERATING PROFIT/(LOSS)                             251,835

Non-Operating Income/(Expense)
Reorganization costs                                          -
                                                   ------------
Total Non-Operating Income (Expense)                          -
Income Taxes                                                  -
Income before cumulative effect of accounting,
     Change                                             251,835
                                                   ------------
NET INCOME/(LOSS)                                      $251,835
                                                   ============

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

Net income                                             $251,835
Depreciation and amortization                           189,750
Receivables                                            (896,731)
Other assets                                             21,056
Payables and accrued expenses                           590,313
Other liabilities                                             -
Property, plant and equipment expenditures             (308,115)
Restricted funds, net                                   141,717
(Repayments) issuance of debt, net                            -
Advances from parents & affiliates                      (56,816)
                                                   ------------
                                                        (66,991)

Cash, beginning balance                                 473,116
                                                   ------------
Cash, ending balance                                   $406,125
                                                   ============

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. 81;
Bankruptcy Creditors' Service, Inc., 215/945-7000)


MERIDIAN AUTOMOTIVE: Files Amended May 2005 Operating Report
------------------------------------------------------------
On July 21, 2005, the Debtors filed with the Court an amended
monthly operating report for the period April 26 to May 31, 2005.

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
               Unaudited Consolidated Balance Sheets
                        As of May 31, 2005
                          (In Thousands)

CURRENT ASSETS:
   Cash                                                       -
   Accounts receivable, net                            $137,480
   Intercompany receivable                               15,402
   Inventories                                           72,734
   Tooling costs in excess of billings and others        32,048
                                                     ----------
      TOTAL CURRENT ASSETS                              257,673
                                                     ----------

   Property, plant and equipment, net                   232,201
   Intangible assets                                     15,657
   Investment in subsidiaries                            23,863
   Other assets,                                         20,999
                                                     ----------
      TOTAL ASSETS                                     $550,393
                                                     ==========

CURRENT LIABILITIES NOT SUBJECT TO COMPRISE:
   Current portion of long term debt                   $294,853
   Accounts payable                                      25,678
   Accrued expenses                                      44,237
   Tooling billings in excess of costs                    4,855
                                                     ----------
      TOTAL CURENT LIABILITIES                          369,623
                                                     ----------

   Liabilities subject to comprise                      435,639
   Non-Current Liabilities Not Subject to Compromise:
      Other long-term liabilities                        16,860
      Accumulated post-retirement benefit obligation     15,994
                                                     ----------
      TOTAL LIABILITIES                                 838,116
      STOCKHOLDERS' EQUITY                             (287,723)
                                                     ----------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT            $550,393
                                                     ==========

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Operations
                     April 26 to May 31, 2005
                          (In Thousands)

Net sales                                               $92,061
Cost of sales                                            82,448
                                                     ----------
Gross profit                                              9,613
Selling, general and administrative expenses              2,828
Restructuring charges                                     1,403
                                                     ----------
Operating income (loss)                                   5,382
Interest expense, net                                     5,705
Other income (expense)                                       12
Chapter 11 and related reorganization items               3,153
                                                     ----------
Loss before provision for income taxes                   (3,484)
Provision for income taxes                                   28
                                                     ----------
NET LOSS                                                ($3,492)
                                                     ==========

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Cash Flows
                      April 26 to May 31, 2005
                          (In Thousands)

OPERATING ACTIVITIES:
   Net loss                                             ($3,492)
   Adjustments required to reconcile net loss to net
      cash provided by (used in) operating activities:
      Depreciation, amortization, and impairment          3,908
      Change in working capital and other operating
         items                                           (6,499)
                                                     ----------
      Net cash used for operating activities before
         reorganization items                            (6,083)
                                                     ----------
   Operating cash flows from reorganization items:
      Chapter 11 and related reorganization items         3,153
      Payments on Chapter 11 and related reorg items       (953)
                                                     ----------
      Net cash provided by Chapter 11 and related
         reorg items                                      2,200

      Net cash used for operating activities             (3,883)

INVESTING ACTIVITIES:
   Additions to property and equipment                   (3,445)
   Proceeds from sale or property and equipment              23
                                                     ----------
      Net cash used for investing activities             (3,422)
                                                     ----------

FINANCING ACTIVITIES:
   Proceeds from prepetition borrowings                       -
   Repayments of prepetition borrowings                       -
   Proceeds from DIP credit facility                     22,400
   Repayments of DIP credit facility                    (13,800)
   Repayments on prepetition long-term debt                   -
   Deferred financing costs capitalized                  (1,493)
                                                     ----------
      Net cash provided by financing activities           7,107
                                                     ----------
Net increase (decrease) in cash                            (198)
                                                     ----------
Cash and Cash Equivalents, beginning of period              198

Cash and Cash Equivalents, end of period                      -
                                                     ==========

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies        
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and other
interior systems to automobile and truck manufacturers.  Meridian
operates 22 plants in the United States, Canada and Mexico,
supplying Original Equipment Manufacturers and major Tier One
parts suppliers.  The Company and its debtor-affiliates filed for
chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos.
05-11168 through 05-11176).  James F. Conlan, Esq., Larry J.
Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at
Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon
L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks,
Esq., at Young Conaway Stargatt & Taylor, LLP, represent the
Debtors in their restructuring efforts.  When the Debtors filed
for protection from their creditors, they listed $530 million in
total assets and approximately $815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 12; Bankruptcy Creditors'
Service, Inc., 215/945-7000).


MERIDIAN AUTOMOTIVE: Posts $21.5 Million Net Loss in June 2005
--------------------------------------------------------------

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
               Unaudited Consolidated Balance Sheets
                        As of June 30, 2005
                          (In Thousands)

CURRENT ASSETS:
   Cash                                                       -
   Accounts receivable, net                            $127,593
   Intercompany receivable                               15,493
   Inventories                                           70,277
   Tooling costs in excess of billings and others        30,305
                                                     ----------
      TOTAL CURRENT ASSETS                              243,668
                                                     ----------

   Property, plant and equipment, net                   235,864
   Intangible assets                                     15,639
   Investment in subsidiaries                            23,863
   Other assets,                                         19,225
                                                     ----------
      TOTAL ASSETS                                     $538,259
                                                     ==========

CURRENT LIABILITIES NOT SUBJECT TO COMPRISE:
   Current portion of long term debt                   $302,132
   Accounts payable                                      28,568
   Accrued expenses                                      49,578
   Tooling billings in excess of costs                    5,144
                                                     ----------
      TOTAL CURENT LIABILITIES                          385,422
                                                     ----------

   Liabilities subject to comprise                      422,435
   Non-Current Liabilities Not Subject to Compromise:
      Other long-term liabilities                        16,707
      Accumulated post-retirement benefit obligation     16,064
                                                     ----------
      TOTAL LIABILITIES                                 840,628
      STOCKHOLDERS' EQUITY                             (302,369)
                                                     ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $538,259
                                                     ==========

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Operations
                     April 26 to May 31, 2005
                          (In Thousands)

Net sales                                               $80,822
Cost of sales                                            73,690
                                                     ----------
Gross profit                                              7,132
Selling, general and administrative expenses              3,617
Restructuring charges                                     1,317
                                                     ----------
Operating income (loss)                                   7,580
Interest expense, net                                    22,539
Other income (expense)                                       13
Chapter 11 and related reorganization items               6,505
                                                     ----------
Loss before provision for income taxes                  (21,451)
Provision for income taxes                                   56
                                                     ----------
NET LOSS                                               ($21,507)
                                                     ==========

              Meridian Automotive Systems - Composite
                 Operations, Inc. and Subsidiaries
                 Unaudited Statement of Cash Flows
                      April 26 to May 31, 2005
                          (In Thousands)

OPERATING ACTIVITIES:
   Net loss                                            ($18,015)
   Adjustments required to reconcile net loss to net
      cash provided by (used in) operating activities:
      Depreciation, amortization, and impairment          3,954
      Change in working capital and other operating
         items                                           14,659
                                                     ----------
      Net cash provided by operating activities
         before reorganization items                        598
                                                     ----------
   Operating cash flows from reorganization items:
      Chapter 11 and related reorganization items         3,352
      Payments on Chapter 11 and related reorg items     (1,152)
                                                     ----------
      Net cash provided by Chapter 11 and related
         reorg items                                      2,200

      Net cash provided by operating activities           2,798

INVESTING ACTIVITIES:
   Additions to property and equipment                   (7,590)
   Proceeds from sale or property and equipment               -
                                                     ----------
      Net cash used for investing activities             (7,590)
                                                     ----------

FINANCING ACTIVITIES:
   Proceeds from prepetition borrowings                       -
   Repayments of prepetition borrowings                       -
   Proceeds from DIP credit facility                     43,622
   Repayments of DIP credit facility                    (36,400)
   Repayments on prepetition long-term debt                   -
   Deferred financing costs capitalized                  (2,430)
                                                     ----------
      Net cash provided by financing activities           4,792
                                                     ----------
Net increase (decrease) in cash                               -
                                                     ----------
Cash and Cash Equivalents, beginning of period                -

Cash and Cash Equivalents, end of period                      -
                                                     ==========

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies        
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and other
interior systems to automobile and truck manufacturers.  Meridian
operates 22 plants in the United States, Canada and Mexico,
supplying Original Equipment Manufacturers and major Tier One
parts suppliers.  The Company and its debtor-affiliates filed for
chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos.
05-11168 through 05-11176).  James F. Conlan, Esq., Larry J.
Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at
Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon
L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks,
Esq., at Young Conaway Stargatt & Taylor, LLP, represent the
Debtors in their restructuring efforts.  When the Debtors filed
for protection from their creditors, they listed $530 million in
total assets and approximately $815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 12; Bankruptcy Creditors'
Service, Inc., 215/945-7000).


MIRANT CORP: Posts $76.3 Million Net Loss in May 2005
-----------------------------------------------------

                   Mirant Corporation and Subsidiaries
                       Consolidated Balance Sheet
                          As of May 31, 2005

ASSETS

Cash and cash equivalents                        $1,683,431,460
Accounts receivable - net                           662,720,610
Assets from risk management activities              271,368,362
Derivative hedging instruments                                -
Inventories                                         392,251,866
Other                                               719,913,252
                                                ---------------
        Total Current Assets                      3,729,685,550

Property, plant and equipment                     5,211,973,110
Less: accumulated depreciation/depletion            897,703,572
Leasehold interests - net                         1,465,692,412
Construction work in progress                       168,751,649
Investment in suspended construction                202,003,697
                                                ---------------
        Total net property, plant and equipment   6,150,717,296

Investments                                         253,100,734
Long-term accounts receivable - net                  33,441,343
Notes receivable - net                                        -
Assets from risk management activities              106,152,190
Goodwill - net                                        5,767,352
Other intangibles - net                             266,346,856
Derivative hedging instruments                                -
Restricted cash, non-current                        205,172,974
Other long-term assets                                        -
Miscellaneous deferred charges                      419,351,823
                                                ---------------
        Total Non-current Assets                  1,289,333,272
                                                ---------------
        TOTAL ASSETS                            $11,169,736,118
                                                ===============

LIABILITIES AND EQUITY

Postpetition Liabilities:
     Debt                                        $1,302,934,717
     Accounts Payable                               521,859,613
     Liabilities from risk management activities    332,650,364
     Obligations under energy deliveries              8,048,903
     Derivative hedging instruments                           -
     Other                                          212,030,017
     Miscellaneous deferred credits                 717,120,587
                                                ---------------
        Total postpetition liabilities            3,094,644,201

Prepetition Liabilities                           9,222,355,610
                                                ---------------
        TOTAL LIABILITIES                        12,316,999,811

EQUITY:
Minority interest in subsidiaries                   168,348,697
Mandatory redeemable securities                               -
Common stock                                          4,056,621
Additional paid-in capital                        4,917,974,951
Retained earnings                                (6,166,164,239)
Treasury stock, at cost                              (2,260,000)
Accumulated other comprehensive income              (69,219,723)
                                                ---------------
        Total Equity                             (1,147,263,693)
                                                ---------------
        TOTAL LIABILITIES AND OWNERS' EQUITY    $11,169,736,118
                                                ===============

                Mirant Corporation and Subsidiaries
                 Consolidated Statements of Income
                 For the month ending May 31, 2005

REVENUES:
     Generation                                    $212,179,862
     Net trading revenue                             (4,182,213)
     Distribution                                    62,475,123
     Other                                              593,504
                                                ---------------
        Net Revenue                                 271,066,276

OPERATING EXPENSES:
     Energy cost                                    145,400,130
     Operations and maintenance                      80,824,956
     Depreciation and amortization                   25,687,780
     Gain on sale of property and investment         27,590,958
     Impairment loss                                     22,872
     Restructuring costs                                524,849
                                                ---------------
        Total Operating Expenses                    280,051,545
                                                ---------------
        Income before non-operating income
        and expense                                  (8,985,269)

OTHER INCOME AND EXPENSES:
     Interest income                                  2,075,983
     Interest expense                               (10,846,773)
     Equity in income of affiliates                   1,744,859
     Other                                           (2,553,856)
     Reorganization items                           (45,181,260)
     Minority interest                               (2,189,008)
     Net income from discontinued operations           (179,345)
     Gain on sale assets, minority owned                      -
                                                ---------------
         Total Other Income                         (57,129,400)

Provision for income tax                            (10,192,511)
                                                ---------------
        NET PROFIT (LOSS)                          ($76,307,180)
                                                ===============

                           Mirant Corporation
             Unconsolidated Cash Receipts and Disbursements
                  For the month ending May 31, 2005

Cash, beginning of month                           $225,727,437

Non-Operating Receipts:
     Loans & Advances                                 6,923,976
     Sale of Assets                                           -
                                                ---------------
     Total non-operating receipts                    (6,923,976)
                                                ---------------
        Total receipts                               (6,923,976)
                                                ---------------
        Total Cash Available                        232,651,413

Operating Disbursements                                       0

Reorganization Expenses
                                                ---------------
        Total disbursements                                   0
                                                ---------------
Net Cash Flow                                         6,923,976
                                                ---------------
Cash, end of month                                 $232,651,413
                                                ===============

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that  
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally.  Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590).  Thomas E. Lauria, Esq., at White &
Case LLP, represents the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed $20,574,000,000 in assets and $11,401,000,000 in debts.
(Mirant Bankruptcy News, Issue No. 71; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


MIRANT CORP: MAGi Posts $73.6 Million Net Loss in May 2005
----------------------------------------------------------

           Mirant Americas Generation, LLC, and Subsidiaries
                       Consolidated Balance Sheet
                          As of May 31, 2005

ASSETS

Cash and cash equivalents                          $499,166,716
Accounts receivable - net                           421,966,508
Assets from risk management activities               61,893,369
Derivative hedging instruments                                -
Inventories                                         184,461,818
Other                                               115,430,523
                                                ---------------
         Total Current Assets                     1,282,918,934

Property, plant and equipment                     2,209,380,636
Less: accumulated depreciation/depletion            366,366,089
Leasehold interests - net                                     -
Construction work in progress                        97,717,262
Investment in suspended construction                173,993,349
                                                ---------------
         Total net property, plant and equipment  2,114,725,158

Investments                                              25,000
Long-term accounts receivable - net                  92,151,573
Notes receivable - net                              223,275,000
Assets from risk management activities                5,614,064
Other intangibles - net                             203,817,430
Derivative hedging instruments                                -
Restricted cash, non-current                          5,088,770
Other long-term assets                                        -
Miscellaneous deferred charges                      199,735,448
                                                ---------------
        Total Non-current Assets                    729,707,285
                                                ---------------
        TOTAL ASSETS                             $4,127,351,377
                                                ===============

LIABILITIES AND EQUITY

Postpetition Liabilities:
     Debt                                                     -
     Accounts Payable                               253,781,874
     Liabilities from risk management activities     70,207,646
     Obligations under energy deliveries                      -
     Derivative hedging instruments                           -
     Other                                          156,076,719
     Miscellaneous deferred credits                  42,600,586
                                                ---------------
        Total postpetition liabilities              522,666,825

Prepetition Liabilities                           3,236,327,632
                                                ---------------
        TOTAL LIABILITIES                         3,758,994,457

EQUITY:
Minority interest in subsidiaries                        35,002
Mandatory redeemable securities                               -
Common stock                                              1,000
Additional paid-in capital                        3,853,859,362
Retained earnings                                (3,485,538,444)
Treasury stock, at cost                                       -
Accumulated other comprehensive income                        -
                                                ---------------
        Total Equity                                368,356,920
                                                ---------------
        TOTAL LIABILITIES AND OWNERS' EQUITY     $4,127,351,377
                                                ===============

           Mirant Americas Generation, LLC, and Subsidiaries
                   Consolidated Statements of Income
                   For the month ending May 31, 2005

REVENUES:
     Generation                                    $143,858,187
     Net trading revenue                                (24,444)
     Distribution                                             -
     Other                                              104,562
                                                ---------------
        Net Revenue                                 143,938,305

OPERATING EXPENSES:
     Energy cost                                     75,254,220
     Operations and maintenance                      49,540,469
     Depreciation and amortization                    7,564,847
     Gain on sale of property and investment                  -
     Impairment loss                                     22,872
     Restructuring costs                                291,136
                                                ---------------
        Total Operating Expenses                    132,673,544
                                                ---------------
        Income before non-operating income
        and expense                                  11,264,761

OTHER INCOME AND EXPENSES:
     Interest income                                          -
     Interest expense                                  (787,598)
     Equity in income of affiliates                           -
     Other                                              (73,766)
     Reorganization items                           (84,760,651)
     Minority interest                                        -
     Net income from discontinued operations                  -
                                                ---------------
        Total Other Income                          (85,622,015)


Provision for income tax                                746,401
                                                ---------------
        NET PROFIT (LOSS)                          ($73,610,853)
                                                ===============

            Mirant Americas Generation, LLC, and Subsidiaries
             Unconsolidated Cash Receipts and Disbursements
                   For the month ending May 31, 2005

Cash, beginning of month                           $203,399,903

Non-Operating Receipts:
     Loans & Advances                                (8,018,340)
     Sale of Assets                                           -
                                                ---------------
     Total non-operating receipts                    (8,018,340)
                                                ---------------
        Total receipts                               (8,018,340)
                                                ---------------
        Total Cash Available                        195,381,564

Operating Disbursements                                       0

Reorganization Expenses                                       0
                                                ---------------
        Total disbursements                                   0
                                                ---------------
Net Cash Flow                                       ($8,018,340)
                                                ---------------
Cash, end of month                                 $195,381,564
                                                ===============

Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that  
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally.  Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590).  Thomas E. Lauria, Esq., at White &
Case LLP, represents the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed $20,574,000,000 in assets and $11,401,000,000 in debts.
(Mirant Bankruptcy News, Issue No. 71; Bankruptcy Creditors'
Service, Inc., 215/945-7000)


RELIANCE GROUP: Posts $2.5 Million Net Loss in June 2005
--------------------------------------------------------

RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Balance Sheet,
excluding subsidiaries which
are not Debtors-in-Possession                30-Jun-2005
_____________________________________        ___________

ASSETS

Cash                                         $48,476,000
Accounts and Notes Receivable                 13,090,000
Prepaid expenses and deposits                    353,000
Due from Reliance Development Group,
   less allowance of $59,334,000                       0
Note Receivable from Reorganized
   RFS Corporation                             2,537,000
Plant, property & equipment                            -
                                        ----------------
      Total Assets                           $64,456,000
                                        ================

LIABILITIES & SHAREHOLDERS' DEFICIT

Liabilities not subject to compromise
   Postpetition accounts payable              $1,410,000
   Professional fee holdback payable           2,479,000
   PBGC administrative claim                           0
Liabilities subject to compromise            850,150,000
                                        ----------------
      Total liabilities                      854,399,000
                                        ----------------

Shareholders' deficit:
   Common stock                               11,616,000
   Additional paid in capital                558,541,000
   Accumulated deficit                    (1,360,100,000)
                                        ----------------
      Total shareholders' deficit           (789,943,000)
                                        ----------------
      Total liabilities & deficit            $64,456,000
                                        ================

RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Statement of           1-Jun-2005
Operations, excluding subsidiaries                to
which are not Debtors-in-Possession          30-Jun-2005
_____________________________________        ___________

Revenues                                              $0
                                        ----------------

Costs and expenses:
   Operating and administrative                   36,000
   Pension Plan Actuarial
     Adjustments and Expenses                          0
   Depreciation                                        0
                                        ----------------
   Total costs and expenses                       36,000
                                        ----------------
Loss before reorganization items                 (36,000)
                                        ----------------
Reorganization items:

   Professional fees                             282,000
   Interest earned on accumulated
      cash resulting from
      Chapter 11 proceeding                     (117,000)
   Correction on interest
      due on bonds                             2,269,000
                                        ----------------
   Total reorganization items                  2,434,000
                                        ----------------
Income tax benefits                                    0
                                        ----------------
Net Income (loss)                            ($2,470,000)
                                        ================

RELIANCE GROUP HOLDINGS, INC., et al.
Unaudited Consolidated Statement of           1-Jun-2005
Cash Flows, excluding subsidiaries                to
which are not Debtors-in-Possession          30-Jun-2005
_____________________________________        ___________

Cash flows from operating activities:

   Loss from operations before
      reorganization items                      ($36,000)
   Adjustments to reconcile loss to
      net cash provided by
      operating activities:
         Income Tax Recovery                           0
         Depreciation                                  0
   Changes in:
      Prepaid expenses                                 0
      Postpetition payables                        7,000
      Increase in Liabilities
        subject to compromise                          0
                                        ----------------
   Net cash (used) provided by
       operating activities before
       reorganization items                      (29,000)
                                        ----------------
   Operating cash flows from
      reorganization items:
         Interest earned                         117,000
         Application of retainer
           towards reorganization
           professional fees                           0
         Payment of
           reorganization items                        0
                                        ----------------
   Net cash used by
      reorganization items                       117,000
                                        ----------------
   Net cash used by
      operating activities                        88,000
                                        ----------------
Cash flows from investing activities:
   Receipt from Reliance
     Development Group                                 0
                                        ----------------
      Net cash provided by
         investing activities                          0
                                        ----------------
Cash flow from financing activities:
   Proceeds of split dollar policies                   0
                                        ----------------
      Net cash provided by
         financing activities                          0
                                        ----------------
Net increase in cash                              88,000

Cash at beginning of period                   48,388,000
                                        ----------------
Cash at end of period                        $48,476,000
                                        ================

Headquartered in New York, New York, Reliance Group Holdings, Inc.
-- http://www.rgh.com/-- is a holding company that owns 100% of   
Reliance Financial Services Corporation. Reliance Financial, in
turn, owns 100% of Reliance Insurance Company.  The holding and
intermediate finance companies filed for chapter 11 protection on
June 12, 2001 (Bankr. S.D.N.Y. Case No. 01-13403) listing
$12,598,054,000 in assets and $12,877,472,000 in debts.  The
insurance unit is being liquidated by the Insurance Commissioner
of the Commonwealth of Pennsylvania. (Reliance Bankruptcy News,
Issue No. 76; Bankruptcy Creditors' Service, Inc., 215/945-7000)


                          *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                          *********

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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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herein is obtained from sources believed to be reliable, but is
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for the term of the initial subscription or balance thereof are
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                    *** End of Transmission ***