/raid1/www/Hosts/bankrupt/TCR_Public/050917.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, September 17, 2005, Vol. 9, No. 221

                          Headlines

ACCEPTANCE INSURANCE: Aug. 31 Balance Sheet Upside-Down by $105MM
AOL LATIN: Files Monthly Operating Report for June 2005
AOL LATIN: Files Monthly Operating Report for July 2005
MIRANT CORP: Earns $75.5 Million of Net Income in July 2005
MIRANT CORP: MAGi Earns $26.8 Million of Net Income in July 2005

SOLUTIA INC: Earns $2 Million of Net Income in July 2005


                          *********


ACCEPTANCE INSURANCE: Aug. 31 Balance Sheet Upside-Down by $105MM
-----------------------------------------------------------------
On Sept. 6, 2005, Acceptance Insurance Companies Inc. filed its
monthly operating report for August 2005 with the U.S. Bankruptcy
Court for the District of Nebraska.

The Debtor reports a $9,805 net loss on $6,820 of revenue for Aug.
2005.

At Aug. 31, 2005, Acceptance Insurance Companies Inc.'s balance
sheet showed:

      Total Current Assets                   $2,692,867
      Total Assets                           33,259,464
      Total Liabilities                     138,187,553
      Total Shareholders' Equity Deficit  ($104,928,089)

A full-text copy of Acceptance Insurance Companies Inc.'s August
2005 Monthly Operating Report is available at no charge at
http://ResearchArchives.com/t/s?18c

Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies Inc. -- http://www.aicins.com/-- owns, either directly  
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.  The Company filed
for chapter 11 protection on Jan. 7, 2005 (Bankr. D. Nebr. Case
No. 05-80059).  The Debtor's affiliates -- Acceptance Insurance
Services, Inc., and American Agrisurance, Inc. -- filed separate
chapter 7 petitions (Bankr. D. Nebr. Case Nos. 05-80056 & 05-
80058) on Jan. 7, 2005.  John J. Jolley, Esq., at Kutak Rock LLP,
represents the Debtor in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it listed
$33,069,446 in total assets and $137,120,541 in total debts.


AOL LATIN: Files Monthly Operating Report for June 2005
-------------------------------------------------------
On Sept. 6, 2005, America Online Latin America, Inc., and its
debtor-affiliates, filed their monthly operating report for the
period ended June 30, 2005, with the United States Bankruptcy
Court for the District of Delaware.

For the month ending June 30, 2005, the Company's Income Statement
shows:
                                                       Net Income/
                                             Revenue    Net Loss
                                             -------   -----------
America Online Latin America, Inc.                $0    ($508,410)
AOL Latin America Management, LLC           $501,866     $220,957
AOL Puerto Rico Management Services, Inc.    $19,046     ($35,536)
America Online Caribbean Basin, Inc.        $251,791      $65,346

At June 30, 2005, the Company's Balance Sheet shows:

              America Online Latin America, Inc.
              __________________________________

      Current Assets                        $20,730,794
      Total Assets                          706,817,332
      Current Liabilities                     6,657,558
      Total Liabilities                     166,657,558
      Total Stockholders' Equity           $540,159,774

              AOL Latin America Management, LLC
              _________________________________

      Current Assets                         $4,179,121
      Total Assets                            4,710,165
      Current Liabilities                    18,434,516
      Total Liabilities                      18,434,516
      Total Stockholders' Deficit          ($13,723,901)


          AOL Puerto Rico Management Services, Inc.
          _________________________________________

      Current Assets                          ($231,894)
      Total Assets                              (74,307)
      Current Liabilities                     5,284,672
      Total Liabilities                       5,308,665
      Total Stockholders' Equity Deficit    ($5,382,633)


             America Online Caribbean Basin, Inc.
             ____________________________________

      Current Assets                        $16,142,365
      Total Assets                           16,157,565
      Current Liabilities                    (2,059,667)
      Total Liabilities                      (2,059,667)
      Total Stockholders' Equity Deficit     18,217,232

A full-text copy of America Online Latin America, Inc., and its
debtor-affiliates' Monthly Operating Report for the period ended
June 30, 2005, is available at no charge at:

               http://ResearchArchives.com/t/s?18b

Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc. -- http://www.aola.com/-- offers AOL-branded    
Internet service in Argentina, Brazil, Mexico, and Puerto Rico, as
well as localized content and online shopping over its proprietary
network.  Principal shareholders in AOLA are Cisneros Group, one
of Latin America's largest media firms, Brazil's Banco Itau, and
Time Warner, through America Online.  The Company and its debtor-
affiliates filed for chapter 11 protection on June 24, 2005
(Bankr. D. Del. Case No. 05-11778).  Pauline K. Morgan, Esq., and
Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor, LLP and
Douglas P. Bartner, Esq., at Shearman & Sterling LLP represent the
Debtors in their restructuring efforts.  When the Debtors filed
for protection from their creditors, they listed total assets of
$28,500,000 and total debts of $181,774,000.


AOL LATIN: Files Monthly Operating Report for July 2005
-------------------------------------------------------
On Sept. 12, 2005, America Online Latin America, Inc., and its
debtor-affiliates, filed their monthly operating report for the
period ended July 31, 2005, with the United States Bankruptcy
Court for the District of Delaware.

For the month ending July 31, 2005, the Company's Income Statement
shows:
                                                       Net Income/
                                             Revenue    Net Loss
                                             -------   -----------
America Online Latin America, Inc.                $0    ($758,853)
AOL Latin America Management, LLC           $870,392     $548,121
AOL Puerto Rico Management Services, Inc.    $85,327    ($194,553)
America Online Caribbean Basin, Inc.      $1,165,894     $547,085


At July 31, 2005, the Company's balance sheet shows:

              America Online Latin America, Inc.
              __________________________________

      Current Assets                        $20,382,246
      Total Assets                          705,660,001
      Current Liabilities                     6,259,080
      Total Liabilities                     166,259,080
      Total Stockholders' Equity           $539,400,921


              AOL Latin America Management, LLC
              _________________________________

      Current Assets                           $477,281
      Total Assets                            1,007,753
      Current Liabilities                    14,183,532
      Total Liabilities                      14,183,532
      Total Stockholders' Deficit          ($13,175,779)


          AOL Puerto Rico Management Services, Inc.
          _________________________________________

      Current Assets                          ($446,276)
      Total Assets                             (288,689)
      Current Liabilities                     5,266,102
      Total Liabilities                       5,288,838
      Total Stockholders' Equity Deficit    ($5,577,187)


             America Online Caribbean Basin, Inc.
             ____________________________________

      Current Assets                        $18,567,296
      Total Assets                           18,583,146
      Current Liabilities                      (181,171)
      Total Liabilities                        (181,171)
      Total Stockholders' Equity Deficit    $18,764,316

A full-text copy of America Online Latin America, Inc., and its
debtor-affiliates' Monthly Operating Report for the period ended
July 31, 2005, is available at no charge at:

               http://ResearchArchives.com/t/s?18d

Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc. -- http://www.aola.com/-- offers AOL-branded    
Internet service in Argentina, Brazil, Mexico, and Puerto Rico, as
well as localized content and online shopping over its proprietary
network.  Principal shareholders in AOLA are Cisneros Group, one
of Latin America's largest media firms, Brazil's Banco Itau, and
Time Warner, through America Online.  The Company and its debtor-
affiliates filed for chapter 11 protection on June 24, 2005
(Bankr. D. Del. Case No. 05-11778).  Pauline K. Morgan, Esq., and
Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor, LLP and
Douglas P. Bartner, Esq., at Shearman & Sterling LLP represent the
Debtors in their restructuring efforts.  When the Debtors filed
for protection from their creditors, they listed total assets of
$28,500,000 and total debts of $181,774,000.


MIRANT CORP: Earns $75.5 Million of Net Income in July 2005
-----------------------------------------------------------

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

ASSETS

Cash and cash equivalents                        $1,481,789,866
Accounts receivable - net                           826,781,675
Assets from risk management activities              439,972,207
Derivative hedging instruments                                -
Inventories                                         360,328,254
Other                                               974,674,245
                                                 --------------
         Total Current Assets                     4,083,546,247

Property, plant and equipment                     5,225,709,210
Less: accumulated depreciation/depletion            933,089,734
Leasehold interests - net                         1,453,483,021
Construction work in progress                       178,129,740
Investment in suspended construction                174,898,955
                                                 --------------
         Total net property, plant and equipment  6,099,131,192

Investments                                         257,526,393
Long-term accounts receivable - net                  48,644,302
Notes receivable - net                                        -
Assets from risk management activities              145,093,727
Goodwill - net                                        5,767,352
Other intangibles - net                             264,791,294
Derivative hedging instruments                                -
Restricted cash, non-current                        187,543,291
Other long-term assets                                   69,040
Miscellaneous deferred charges                      468,027,984
                                                 --------------
         Total Non-current Assets                 1,377,463,383
                                                 --------------
         TOTAL ASSETS                            $11,560,140,822
                                                  ==============

LIABILITIES AND EQUITY

Postpetition Liabilities:
      Debt                                       $1,219,469,079
      Accounts Payable                              622,496,805
      Liabilities from risk management activities   620,619,004
      Obligations under energy deliveries             7,252,069
      Derivative hedging instruments                          -
      Other                                         225,580,636
      Miscellaneous deferred credits                733,202,055
                                                 --------------
         Total postpetition liabilities           3,428,619,648

Prepetition Liabilities                           9,189,739,226
                                                  -------------
         TOTAL LIABILITIES                       12,618,358,874

EQUITY:
Minority interest in subsidiaries                   170,234,552
Mandatory redeemable securities                               -
Common stock                                          4,056,621
Additional paid-in capital                        4,917,965,790
Retained earnings                                (6,078,032,499)
Treasury stock, at cost                              (2,260,000)
Accumulated other comprehensive income              (70,182,516)
                                                 --------------
         Total Equity                           ($1,058,218,052)
                                                ---------------
         TOTAL LIABILITIES AND OWNERS' EQUITY   $11,560,140,822
                                                ===============

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

REVENUES:
      Generation                                   $313,619,438
      Net trading revenue                              (217,295)
      Distribution                                   65,574,344
      Other                                             889,956
                                                ---------------
         Net Revenue                                379,866,443

OPERATING EXPENSES:
      Energy cost                                   171,807,443
      Operations and maintenance                     82,775,939
      Depreciation and amortization                  25,577,749
      Gain on sale of property and investment           (14,712)
      Impairment loss                                    33,313
      Restructuring costs                               156,420
                                                ---------------
         Total Operating Expenses                   280,336,152
                                                ---------------
         Income before non-operating income
         and expense                                 99,530,291

OTHER INCOME AND EXPENSES:
      Interest income                                 4,182,983
      Interest expense                              (10,344,490)
      Equity in income of affiliates                  2,009,240
      Other                                             (52,723)
      Reorganization items                          (10,068,373)
      Minority interest                              (2,388,968)
      Net income from discontinued operations          (165,922)
      Gain on sale assets, minority owned                     -
                                                ---------------
          Total Other Income                        (16,828,253)

Provision for income tax                             (7,161,297)
                                                ---------------
         NET PROFIT (LOSS)                          $75,540,741
                                                ===============

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

Cash, beginning of month                           $236,068,396

Non-Operating Receipts:
      Loans & Advances                              $26,348,533
      Sale of Assets                                          -
                                                ---------------
      Total non-operating receipts                   26,348,533
                                                ---------------
         Total receipts                              26,348,533
                                                ---------------
         Total Cash Available                       262,416,929

Operating Disbursements                                       0

Reorganization Expenses
                                                ---------------
         Total disbursements                                  0
                                                ---------------
Net Cash Flow                                        26,348,533
                                                ---------------
Cash, end of month                                 $262,416,929
                                                ===============

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


MIRANT CORP: MAGi Earns $26.8 Million of Net Income in July 2005
----------------------------------------------------------------

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

ASSETS

Cash and cash equivalents                          $478,268,792
Accounts receivable - net                           507,460,930
Assets from risk management activities               24,560,179
Derivative hedging instruments                                -
Inventories                                         155,241,623
Other                                               117,563,837
                                                ---------------
         Total Current Assets                     1,283,095,361

Property, plant and equipment                     2,211,020,317
Less: accumulated depreciation/depletion            380,216,611
Leasehold interests - net                                     -
Construction work in progress                       109,606,452
Investment in suspended construction                173,998,955
                                                ---------------
         Total net property, plant and equipment  2,114,409,113

Investments                                              25,000
Long-term accounts receivable - net                  92,171,429
Notes receivable - net                              223,275,000
Assets from risk management activities               23,335,401
Other intangibles - net                             202,559,941
Derivative hedging instruments                                -
Restricted cash, non-current                          5,108,815
Other long-term assets                                        -
Miscellaneous deferred charges                      248,507,108
                                                ---------------
        Total Non-current Assets                    794,982,694
                                                ---------------
        TOTAL ASSETS                             $4,192,487,168
                                                ===============

LIABILITIES AND EQUITY

Postpetition Liabilities:
     Debt                                                     -
     Accounts Payable                               237,953,349
     Liabilities from risk management activities     99,376,266
     Obligations under energy deliveries                      -
     Derivative hedging instruments                           -
     Other                                          170,606,295
     Miscellaneous deferred credits                  42,113,044
                                                ---------------
        Total postpetition liabilities              550,048,954

Prepetition Liabilities                           3,234,021,659
                                                ---------------
        TOTAL LIABILITIES                         3,784,070,613

EQUITY:
Minority interest in subsidiaries                        35,002
Mandatory redeemable securities                               -
Common stock                                              1,000
Additional paid-in capital                        3,853,859,365
Retained earnings                                (3,445,478,812)
Treasury stock, at cost                                       -
Accumulated other comprehensive income                        -
                                                ---------------
        Total Equity                                408,416,555
                                                ---------------
        TOTAL LIABILITIES AND OWNERS' EQUITY     $4,192,487,168
                                                ===============

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

REVENUES:
     Generation                                    $232,818,508
     Net trading revenue                                      -
     Distribution                                             -
     Other                                               93,576
                                                ---------------
        Net Revenue                                 232,912,084

OPERATING EXPENSES:
     Energy cost                                    151,788,720
     Operations and maintenance                      47,795,235
     Depreciation and amortization                    7,555,622
     Gain on sale of property and investment                  -
     Impairment loss                                     33,313
     Restructuring costs                                107,644
                                                ---------------
        Total Operating Expenses                    207,280,534
                                                ---------------
        Income before non-operating income
        and expense                                  25,631,550

OTHER INCOME AND EXPENSES:
     Interest income                                  1,610,091
     Interest expense                                (1,121,460)
     Equity in income of affiliates                           -
     Other                                              269,667
     Reorganization items                               877,566
     Minority interest                                        -
     Net income from discontinued operations                  -
                                                ---------------
        Total Other Income                            1,635,864

Provision for income tax                               (453,770)
                                                ---------------
        NET PROFIT (LOSS)                           $26,813,644
                                                ===============

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

Cash, beginning of month                           $183,871,034

Non-Operating Receipts:
     Loans & Advances                                 1,244,974
     Sale of Assets                                           -
                                                ---------------
     Total non-operating receipts                     1,244,974
                                                ---------------
        Total receipts                                1,244,974
                                                ---------------
        Total Cash Available                        185,116,008

Operating Disbursements                                       0

Reorganization Expenses                                       0
                                                ---------------
        Total disbursements                                   0
                                                ---------------
Net Cash Flow                                        $1,244,974
                                                ---------------
Cash, end of month                                 $185,116,008
                                                ===============

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


SOLUTIA INC: Earns $2 Million of Net Income in July 2005
--------------------------------------------------------

                   Solutia Chapter 11 Debtors
      Unaudited Statement of Consolidated Financial Position
                       As of July 31, 2005

                              Assets

Current assets:
   Cash                                             $18,000,000
   Trade Receivables, net                           155,000,000
   Account Receivables-Unconsolidated Subsidiaries   48,000,000
   Inventories                                      156,000,000
   Other Current Asset                               54,000,000
                                                 --------------
Total Current Assets                                431,000,000

Property, Plant and Equipment, net                  675,000,000
Investments in Subsidiaries and Affiliates          533,000,000
Intangible Assets, net                              100,000,000
Other Assets                                         85,000,000
                                                 --------------
TOTAL ASSETS                                     $1,824,000,000
                                                 ==============

                Liabilities & Shareholders' Deficit

Current liabilities:
   Accounts Payable                                $147,000,000
   Short Term Debt                                  300,000,000
   Other Current Liabilities                        147,000,000
                                                 --------------
Total Current Liabilities                           594,000,000

Other Long-Term Liabilities                         207,000,000
Total Liabilities not Subject to Compromise         801,000,000
Liabilities Subject to Compromise                 2,266,000,000
Shareholders' Deficit                            (1,243,000,000)
                                                 --------------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT        $1,824,000,000
                                                 ==============

                    Solutia Chapter 11 Debtors
         Unaudited Consolidated Statement of Operations
                For the Month Ended July 31, 2005

Total Net Sales                                    $179,000,000
Total Cost Of Goods Sold                            157,000,000
                                                 --------------
Gross Profit                                         22,000,000
Total MAT Expense                                    18,000,000
                                                 --------------
Operating Income                                      4,000,000

Equity Earnings from Affiliates                       6,000,000
Interest Expense, net                                (5,000,000)
Other Income, net                                     1,000,000

Reorganization Items:
   Professional fees                                 (4,000,000)
                                                 --------------
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. 46; 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
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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
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related conferences are encouraged. Send announcements to
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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.

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