TCR_Public/061007.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, October 7, 2006, Vol. 10, No. 239

                             Headlines

ADELPHIA COMMS: Files Monthly Operating Report for August 2006
ALLIED HOLDINGS: Earns $2.1 Million in August 2006
AMES DEPARTMENT: Posts $408,000 Net Loss for Period Ended July 1
AMES DEPARTMENT: Posts $107,000 Net Loss for Period Ended July 29
ASARCO LLC: Discloses $1,202,416 Total Advances to Subsidiaries

ASARCO LLC: Earns $69.5 Million in August 2006
CALPINE CORPORATION: Earns $92.2 Million in July 2006
DELPHI CORPORATION: Posts $533 Million Net Loss in August 2006
ENTERGY NEW ORLEANS: Earns $1.5 Million in August 2006
FLYI INC: Posts $490,610 Net Loss in August 2006

FLYI INC: Independence Air Earns $6.8 Million in August 2006
NORTHWEST AIRLINES: Posts $943 Million Net Loss for August 2006
PERFORMANCE TRANSPORT: Files August 2006 Monthly Operating Report
VESTA INSURANCE: Posts $16,423 Net Loss for August 2006
VESTA INSURANCE: Gordon Gaines Earns $116,204 in August 2006

                             *********

ADELPHIA COMMS: Files Monthly Operating Report for August 2006
--------------------------------------------------------------
In a regulatory filing with the Securities and Exchange
Commission, Adelphia Communications Corporation discloses that it
adopted a liquidation basis of accounting in August 2006 as a
result of the sale of its assets on July 31, 2006, to Time Warner
NY Cable, LLC, and Comcast Corporation.

ACOM's Senior Vice President and Chief Accounting Officer,
Scott D. MacDonald, explains that under the liquidation basis of
accounting, assets are recorded at their estimated realizable
amounts and liabilities that will be paid in full are recorded at
the present value of amounts to be paid.  Liabilities subject to
compromise are recorded at their face amounts until they are
settled, at which time they will be adjusted to their settlement
amounts.

In connection with the adoption of liquidation basis of
accounting, ACOM recorded a preliminary estimated accrual for
costs during the liquidation period of $145,289,000, Mr. MacDonald
relates.  The estimate is subject to change.

ACOM also discloses that it expects to pay approximately
$1,800,000,000 of claims in the third quarter of 2006 in
accordance with the Plan of Reorganization for the Parnassos
Debtors and the Century-TCI Debtors, of which approximately
$1,600,000,000 relates to prepetition debt obligations.  ACOM has
paid $1,650,000,000 of those claims as of August 31, 2006.

             Adelphia Communications Corporation, et al.
              Consolidated Statement of Net Liabilities
                     In Liquidation (Unaudited)
                       As of August 31, 2006
                       (Dollars in thousands)

                               ASSETS

Cash and cash equivalents                            $5,925,307
Restricted cash                                          91,536
Short-term investments                                3,416,922
Receivable for securities                                 5,228
Proceeds from Sale Transaction held in escrow           700,573
TWC Class A Common Stock                              4,750,147
Other assets                                            241,541
                                                     ----------
Total Assets                                        $15,131,254
                                                     ==========

          LIABILITIES AND NET LIABILITIES IN LIQUIDATION

Accounts payable                                        $21,404
Income and other taxes payable                          605,599
Accrued liquidation costs                               145,289
Other accrued liabilities                               389,301
Liabilities subject to compromise                    16,722,583
                                                     ----------
Total liabilities                                   $17,884,176
                                                     ----------
Net Liabilities in Liquidation                      ($2,752,922)
                                                     ==========


             Adelphia Communications Corporation, et al.
            Unaudited Consolidated Statement of Changes
                  in Net Liabilities In Liquidation
                     Month Ended August 31, 2006
                       (Dollars in thousands)

Stockholders' deficit at July 31, 2006              ($2,402,824)

Effects of adopting liquidation basis of
accounting:
    Accrual of liquidation costs                       (145,289)
    Initial adjustment of assets to estimated
       realizable values                                (13,044)
    Adjustment of liabilities subject to compromise
       to face value                                   (181,594)
                                                     ----------
Net effect of adopting liquidation basis of
    accounting                                         (339,927)
                                                     ----------

Liquidation activities:
    Adjustment to gain on Sale Transaction               (6,041)
    Settlement of liabilities subject to compromise        (599)
                                                     ----------
Net change from liquidation activities                   (6,640)
                                                     ----------

Changes in fair values of assets and liabilities:
    Change in estimate of net realizable value
       of assets                                            960
    Interest income                                      38,258
    Interest expense                                    (42,749)
                                                     ----------
Net change in fair values of assets and liabilities      (3,531)
                                                     ----------
Net change in net liabilities in liquidation           (350,098)
                                                     ----------
Net liabilities in liquidation at August 31, 2006   ($2,752,922)
                                                     ==========

Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest  
cable television company in the country.  Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie Farr
& Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the
Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11 protection
on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through
06-10642).  Their cases are jointly administered under Adelphia
Communications and its debtor-affiliates chapter 11 cases.
(Adelphia Bankruptcy News, Issue Nos. 151; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


ALLIED HOLDINGS: Earns $2.1 Million in August 2006
--------------------------------------------------

                      Allied Holdings, Inc.
               Unaudited Consolidated Balance Sheet
                      As of August 31, 2006
                          (In Thousands)

                              Assets

Current Assets:
        Cash and cash equivalents                           $228
        Receivables, net of allowances                    46,591
        Related party receivables                         18,290
        Inventories                                        5,096
        Prepayments and other current assets              24,768
                                                        --------
           Total current assets                           94,973

Property and equipment, net                              123,236
Goodwill, net                                              3,545
Deferred income taxes                                         63
Other noncurrent assets                                   22,042
Investment in related parties                             24,710
                                                        --------
TOTAL ASSETS                                            $268,569
                                                        ========

                   Liabilities and Stockholders' Deficit

Current liabilities not subject to compromise
         DIP facility                                   $150,938
         Canadian revolving credit facility                  505
         Accounts and notes payable                       32,542
         Deferred income taxes                                80
         Accrued liabilities                              54,996
                                                        --------
           Total current liabilities                    $239,061

Long-term liabilities not subject to compromise
         Postretirement benefits                           4,308
         Other long-term liabilities                      20,596
                                                        --------
           Total long-term liabilities                    24,904

Liabilities subject to compromise                        199,347
Stockholders deficit                                    (194,743)
                                                        --------
        Total liabilities & stockholders deficit        $268,569
                                                        ========

                      Allied Holdings, Inc.
          Unaudited Consolidated Statement of Operations
               For the Month Ended August 31, 2006
                          (In Thousands)

Revenues                                                 $75,676

Operating Expenses
        Salaries, Wages & Fringe benefits                 38,704
        Operating supplies & expenses                     15,275
        Purchased transportation                           9,473
        Insurance & claims                                 3,264
        Operating tax & licenses                           2,338
        Depreciation & amortization                        2,244
        Rents                                                592
        Communications & utilities                           501
        Other operating expenses                             501
        Loss on disposal of operating assets, net              1
                                                        --------
           Total Operating Expenses                       72,893
                                                        --------
           Operating Income (Loss)                         2,783

Other Income (Expense)
        Interest expense                                  (1,911)
        Investment income                                      8
        Foreign exchange gains, net                          970
        Equity in earnings of subsidiaries                   534
                                                        --------
                                                            (399)
                                                        --------
Income before reorganization items and income taxes        2,384
Reorganization items                                        (190)
                                                        --------
Income (Loss) before income taxes                          2,194
Income tax expense                                             -
                                                        --------
NET INCOME (LOSS)                                         $2,194
                                                        ========

The Debtors disclosed cash disbursements totaling $3,973,254
during August 2006.

Headquartered in Decatur, Georgia, Allied Holdings, Inc.
-- http://www.alliedholdings.com/-- and its affiliates provide  
short-haul services for original equipment manufacturers and
provide logistical services.  The Company and 22 of its affiliates
filed for chapter 11 protection on July 31, 2005 (Bankr. N.D. Ga.
Case Nos. 05-12515 through 05-12537).  Jeffrey W. Kelley, Esq., at
Troutman Sanders, LLP, represents the Debtors in their
restructuring efforts.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor.  Anthony J. Smits,
Esq., at Bingham McCutchen LLP, provides the Official Committee of
Unsecured Creditors with legal advice and Russell A. Belinsky at
Chanin Capital Partners, LLC, provides financial advisory services
to the Committee.  When the Debtors filed for protection from
their creditors, they estimated more than $100 million in assets
and debts.  (Allied Holdings Bankruptcy News, Issue No. 31;
Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/
or 215/945-7000).


AMES DEPARTMENT: Posts $408,000 Net Loss for Period Ended July 1
----------------------------------------------------------------

         Ames Department Stores, Inc., and Subsidiaries
         Unaudited Consolidated Condensed Balance Sheet
                        At July 1, 2006
                         (In Thousands)

ASSETS
Current Assets:
    Cash and cash equivalents                            $11,365
    Restricted cash                                       58,509
    Receivables                                              870
                                                       ---------
Total current assets                                      70,744
Fixed Assets                                                   -
                                                       ---------
Total Assets                                             $70,744
                                                       =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
    Accounts payable:
    Trade                                                $47,394
    Other                                                 10,265
                                                       ---------
Total accounts payable                                    57,659

Self-insurance reserves                                   25,369
Accrued expenses                                          19,657
Liabilities subject to compromise                        846,442
                                                       ---------
Total liabilities                                        949,127

Stockholders' equity (deficit)
    Common stock                                             295
    Additional paid-in capital                           533,393
    Accumulated deficit                               (1,411,149)
    Treasury stock                                          (922)
                                                       ---------
Total stockholders' deficit                             (878,383)
                                                       ---------
Total liabilities and stockholders' deficit              $70,744
                                                       =========

         Ames Department Stores, Inc., and Subsidiaries
    Unaudited Consolidated Condensed Statement of Operations
             For the Five Weeks Ended July 1, 2006
                         (In Thousands)

Total revenue                                                $78

Costs and expenses
    Wind down expenses and other costs                       386
    Gain on Sale of Assets                                     -
    Write off of excess reserves                               -
    Professional fees                                        100
                                                       ---------
Loss before income taxes                                    (408)
Income tax provision                                           -
                                                       ---------
Net Loss                                                   ($408)
                                                       =========

         Ames Department Stores, Inc., and Subsidiaries
    Unaudited Consolidated Condensed Statement of Cash Flows
             For the Five Weeks ended July 1, 2006
                         (In Thousands)

Cash flows from operating activities:
    Net loss                                               ($408)
    Expenses not requiring the outlay of cash:
       Gain on the sale of assets                              -
                                                       ---------
Cash provided by operations                                 (408)

Changes in working capital:
    Decrease in receivables                                  151
    Decrease in accrued exp. and other liabilities          (294)
    Decrease in accounts payable                            (370)
    Increase in Restricted Cash                              (19)
                                                       ---------
Net cash provided by operating activities                   (940)

Cash flows from financing activities:
    Change in liabilities subject to compromise              271
    Proceeds from the sale of assets                           -
                                                       ---------
Net cash used by financing activities                        271

Decrease in cash and cash equivalents                       (669)
Cash and cash equivalents, beginning of period            12,034
                                                       ---------
Cash and cash equivalents, end of period                 $11,365
                                                       =========

Ames Department Stores filed for chapter 11 protection on
Aug. 20, 2001 (Bankr. S.D.N.Y. Case No. 01-42217).  Albert Togut,
Esq., Frank A. Oswald, Esq. at Togut, Segal & Segal LLP and Martin
J. Bienenstock, Esq., and Warren T. Buhle, Esq., at Weil, Gotshal
& Manges LLP represent the Debtors in their restructuring efforts.  
When the Company filed for protection from their creditors, they
listed $1,901,573,000 in assets and $1,558,410,000 in liabilities.  
(AMES Bankruptcy News, Issue No. 85; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMES DEPARTMENT: Posts $107,000 Net Loss for Period Ended July 29
-----------------------------------------------------------------

         Ames Department Stores, Inc., and Subsidiaries
         Unaudited Consolidated Condensed Balance Sheet
                        At July 29, 2006
                         (In Thousands)

ASSETS
Current Assets:
    Cash and cash equivalents                            $10,894
    Restricted cash                                       58,526
    Receivables                                              895
                                                       ---------
Total current assets                                      70,315
Fixed Assets                                                   -
                                                       ---------
Total Assets                                             $70,315
                                                       =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
    Accounts payable:
    Trade                                                $47,393
    Other                                                  9,883
                                                       ---------
Total accounts payable                                    57,276

Self-insurance reserves                                   25,216
Accrued expenses                                          19,550
Liabilities subject to compromise                        846,763
                                                       ---------
Total liabilities                                        948,805

Stockholders' equity (deficit)
    Common stock                                             295
    Additional paid-in capital                           533,393
    Accumulated deficit                               (1,411,256)
    Treasury stock                                          (922)
                                                       ---------
Total stockholders' deficit                             (878,490)
                                                       ---------
Total liabilities and stockholders' deficit              $70,315
                                                       =========

         Ames Department Stores, Inc., and Subsidiaries
    Unaudited Consolidated Condensed Statement of Operations
             For the Four Weeks Ended July 29, 2006
                         (In Thousands)

Total revenue                                                $91

Costs and expenses
    Wind down expenses and other costs                       198
    Gain on Sale of Assets                                     -
    Write off of excess reserves                               -
    Professional fees                                          -
                                                       ---------
Loss before income taxes                                    (107)
Income tax provision                                           -
                                                       ---------
Net Loss                                                   ($107)
                                                       =========

         Ames Department Stores, Inc., and Subsidiaries
    Unaudited Consolidated Condensed Statement of Cash Flows
             For the Four Weeks ended July 29, 2006
                         (In Thousands)

Cash flows from operating activities:
    Net loss                                               ($107)
    Expenses not requiring the outlay of cash:
       Gain on the sale of assets                              -
                                                       ---------
Cash provided by operations                                 (107)

Changes in working capital:
    Increase in receivables                                  (25)
    Decrease in accrued exp. and other liabilities          (260)
    Decrease in accounts payable                            (383)
    Increase in Restricted Cash                              (17)
                                                       ---------
Net cash provided by operating activities                   (792)

Cash flows from financing activities:
    Change in liabilities subject to compromise              321
    Proceeds from the sale of assets                           -
                                                       ---------
Net cash used by financing activities                        321

Decrease in cash and cash equivalents                       (471)
Cash and cash equivalents, beginning of period            11,365
                                                       ---------
Cash and cash equivalents, end of period                 $10,894
                                                       =========

Ames Department Stores filed for chapter 11 protection on
Aug. 20, 2001 (Bankr. S.D.N.Y. Case No. 01-42217).  Albert Togut,
Esq., Frank A. Oswald, Esq. at Togut, Segal & Segal LLP and Martin
J. Bienenstock, Esq., and Warren T. Buhle, Esq., at Weil, Gotshal
& Manges LLP represent the Debtors in their restructuring efforts.  
When the Company filed for protection from their creditors, they
listed $1,901,573,000 in assets and $1,558,410,000 in liabilities.  
(AMES Bankruptcy News, Issue No. 85; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


ASARCO LLC: Discloses $1,202,416 Total Advances to Subsidiaries
---------------------------------------------------------------
ASARCO LLC informs the Court that it has failed to disclose
certain advances made to certain of its debtor and non-debtor
subsidiaries in its monthly operating reports from August 2005
though July 2006, aggregating to $1,202,416.

   Summary of Postpetition Payments Made to Funded Entities
               August 9, 2005 - July 31, 2006

      Name                                  Payment
      ----                                  -------
      Parent Company
         Asarco, Inc.                       $138,273

      Bankrupt Entities
         ASARCO Consulting                   358,939
         ASARCO Master, Inc.                  92,649
         Encycle/Texas, Inc.                  55,573
         ASARCO Oil and Gas Company           18,184
         Encycle, Inc.                         1,200
         AR Mexican Explorations                 810
         Covington Land Company                  810
         ALC, Inc.                               750
         American Smelting and Refining          750
         AR Sacaton, LLC (Arizona)               750
         Government Gulch Mining Company         750
         Salero Ranch, Unit III                  750

      Non-Bankrupt Entities
         ASARCO Exploration Company          298,011
         AR Sacaton, LLC (Delaware)          210,882
         Asarco Exploration Co., Canada       12,500
         ASARCO Santa Cruz, Inc.              10,803
         Green Hill Cleveland Mining             125
         Alta Mining and Development             112
         AR Silver Bell, Inc.                    105
                                          ----------
                                  TOTAL   $1,202,416
                                          ==========

James R. Prince, Esq., at Baker Botts L.L.P., in Dallas, Texas,
relates that the Advances made to the non-debtor subsidiaries were
used to cover ordinary expenses like security guard services,
utilities, property maintenance and repair expenses, mineral and
licensing fees, state and local taxes and registration fees.  The
Advances made to various debtor subsidiaries were used to cover
operating and reorganization expenses.

Mr. Prince asserts that the Advances of discrete funds to cover
the cash needs of the subsidiaries helped preserve ASARCO's
investments in those entities and allowed all of the Debtors in
the jointly administered Chapter 11 cases to continue to comply
with their obligations as debtors.

Furthermore, to the extent that the funds covered the cash needs
of certain subsidiaries holding valuable assets for sale, ASARCO
and its estate will benefit because the vast majority of those
sales proceeds will be received by ASARCO as their sole
shareholder.

Headquartered in Tucson, Arizona, ASARCO LLC
-- http://www.asarco.com/-- is an integrated copper mining,  
smelting and refining company.  Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent.  The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor
in its restructuring efforts.  Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services.  Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the
Official Committee of Unsecured Creditors and David J. Beckman at
FTI Consulting, Inc., gives financial advisory services to the
Committee.  When the Debtor filed for protection from its
creditors, it listed $600 million in total assets and $1 billion
in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered with
its chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding.  The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.
(ASARCO Bankruptcy News, Issue No. 30; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


ASARCO LLC: Earns $69.5 Million in August 2006
----------------------------------------------

                       ASARCO LLC, et al.
                          Balance Sheet
                      As of August 31, 2006

ASSETS
    Current Assets:
    Cash                                           $278,301,000
    Restricted Cash                                  24,134,000
    Accounts receivable, net                        142,216,000
    Inventory                                       300,129,000
    Prepaid expenses                                 19,374,000
    Deferred income tax assets                                0
    Other current assets                             15,455,000
                                                  -------------
Total Current Assets                                779,607,000

Net property, plant and equipment                   411,602,000
Other Assets
    Investments in subs                              77,447,000
    Advances to affiliates                           13,398,000
    Prepaid pension & retirement plan                76,592,000
    Non-current deferred tax asset                   40,954,000
    Other                                           136,335,000
                                                  -------------
Total assets                                     $1,535,936,000
                                                  =============
                                      
LIABILITIES
Postpetition liabilities:
    Accounts payable                                $48,214,000
    Accrued liabilities                              26,914,000
    Debtor-in-possession financing                            0
                                                  -------------
Total postpetition liabilities                       75,128,000

Prepetition liabilities:
    Not subject to compromise - credit                  863,000
    Not subject to compromise - other               124,301,000
    Advances from affiliates                         28,683,000
    Subject to compromise                           876,655,000
                                                  -------------
Total prepetition liabilities                     1,030,503,000
                                                  -------------
Total liabilities                                $1,105,631,000
                                                  -------------

OWNERS' EQUITY (DEFICIT)
Common stock                                        508,325,000
Additional paid-in capital                          104,578,000
Other comprehensive income                         (122,212,000)
Retained earnings: filing date                     (531,162,000)
                                                  -------------
Total prepetition owners' equity                    (40,472,000)
Retained earnings: post-filing date                 470,777,000
                                                  -------------
Total owners' equity (net worth)                    430,305,000

Total liabilities and owners' equity             $1,535,936,000
                                                  =============


                       ASARCO LLC, et al.
              Consolidated Statement of Operations
                  Month Ending August 31, 2006


Sales                                              $156,766,000
Cost of products and services                        85,947,000
                                                  -------------
Gross profit                                         70,819,000

Operating expenses:
Selling and general & admin expenses                  5,697,000
Depreciation & amortization                           2,351,000
Provision accretion expense of asset
retirement obligation                                  143,000
                                                  -------------
Operating income                                     62,629,000

Interest expense                                         30,000
Interest income                                      (1,561,000)
Reorganization expenses                               2,809,000
Other miscellaneous (income) expenses                (9,573,000)
                                                  -------------
Income (loss) before taxes                           70,923,000
Income taxes                                          1,418,000
                                                    -----------
Net income (loss)                                   $69,504,000
                                                    ===========


                       ASARCO LLC, et al.
           Consolidated Cash Receipts & Disbursements
                  Month Ending August 31, 2006


Receipts                                           $157,110,000
Disbursements:
Inventory material                                   66,510,000
Operating disbursements                              44,965,000
Capital expenditures                                  3,758,000
                                                   ------------
Total disbursements                                 115,233,000

Operating cash flow                                  41,877,000
Reorganization disbursements                          2,518,000
                                                   ------------
Net cash flow                                        39,360,000
Net payments to secured Lenders                               0
                                                   ------------
Net change in cash                                   39,360,000
Beginning cash balance                              263,075,000
                                                   ------------
Ending cash balance                                $302,435,000
                                                   ============

Headquartered in Tucson, Arizona, ASARCO LLC
-- http://www.asarco.com/-- is an integrated copper mining,  
smelting and refining company.  Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent.  The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in
its restructuring efforts.  Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services.  Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the
Official Committee of Unsecured Creditors and David J. Beckman at
FTI Consulting, Inc., gives financial advisory services to the
Committee.  When the Debtor filed for protection from its
creditors, it listed $600 million in total assets and $1 billion
in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered with
its chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case was
converted to a Chapter 7 liquidation proceeding.  The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee.
(ASARCO Bankruptcy News, Issue No. 30; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


CALPINE CORPORATION: Earns $92.2 Million in July 2006
-----------------------------------------------------

                       Calpine Corporation
              Condensed Consolidating Balance Sheet
                       As of July 31, 2006

                             ASSETS

Current assets:
   Cash & cash equivalents                        $877,289,000
   Accounts receivable, net                      1,043,724,000
   Margin deposits & other prepaid expense         294,486,000
   Inventories                                     169,006,000
   Restricted cash                                 479,516,000
   Current derivative assets                       329,687,000
   Current assets held for sale                    383,892,000
   Other current assets                            131,029,000
                                                --------------
Total current assets                             3,708,629,000

   Restricted cash, net of current portion         199,458,000
   Notes receivable, net of current portion        154,261,000
   Project development costs                        26,319,000
   Investments                                      67,118,000
   Deferred financing costs                        165,545,000
   Prepaid lease, net of current portion           196,876,000
   Property, plant & equipment, net             13,932,203,000
   Goodwill                                         45,160,000
   Other intangible assets, net                     51,967,000
   Long-term derivative assets                     582,364,000
   Other assets                                    618,150,000
                                                --------------
Total assets                                   $19,748,050,000
                                                ==============

               LIABILITIES & STOCKHOLDERS' DEFICIT

Current liabilities:
   Accounts payable                               $566,372,000
   Accrued payroll and related expense              43,311,000
   Accrued interest payable                        180,072,000
   Income taxes payable                             99,073,000
   Notes payable & other borrowings                181,833,000
   Preferred interests                               9,124,000
   Capital lease obligations                       286,209,000
   CCFC financing                                  783,528,000
   CalGen financing                              2,510,519,000
   Construction/project financing                1,997,850,000
   DIP Facility                                      3,500,000
   Current derivative liabilities                  490,625,000
   Other current liabilities                       301,012,000
                                                --------------
Total current liabilities                        7,453,028,000

   Notes payable and other borrowings              467,362,000
   Preferred interests                             579,122,000
   Capital lease obligations                           319,000
   Construction/project financing                  420,050,000
   DIP Facility                                    994,750,000
   Deferred income taxes                           350,037,000
   Deferred revenue                                143,796,000
   Long-term derivative liabilities                735,889,000
   Other liabilities                               150,955,000
                                                --------------
Total liabilities not subject to compromise     11,295,308,000
Liabilities subject to compromise               14,954,756,000

Minority interests                                 265,922,000
Stockholders' equity (deficit):
   Common stock                                        569,000
   Additional paid-in capital                    3,268,855,000
   Additional paid-in capital, loaned shares       258,100,000
   Additional paid-in capital, returnable shares  (258,100,000)
   Accumulated deficit                          (9,928,138,000)
   Accumulated other comprehensive loss           (109,222,000)
                                                --------------
Total stockholders' deficit                     (6,767,936,000)
                                                --------------
Total liabilities & stockholders' deficit      $19,748,050,000
                                                ==============


                       Calpine Corporation
         Condensed Consolidating Statement of Operations
                 For period ending July 31, 2006

Revenue:
   Electricity and steam revenue                  $625,693,000
   Sales of purchased power & gas
      for hedging and optimization                 168,506,000
   Mark-to-market activities, net                  (13,825,000)
   Other revenue                                     4,334,000
                                                --------------
Total revenue                                      784,708,000

Cost of revenue:
   Plant operating expense                          31,265,000
   Royalty expense                                   2,481,000
   Transmission purchase expense                     5,060,000
   Purchased power and gas
      for hedging and optimization                 135,110,000
   Fuel expense                                    380,872,000
   Depreciation & amortization expense              37,058,000
   Operating plant impairments
   Operating lease expense                           1,358,000
   Other cost of revenue                             2,690,000
                                                --------------
Total cost of revenue                              595,894,000
                                                --------------
Gross profit                                       188,814,000
Equipment, development project & other impairment      (26,000)
Project development expense                          1,864,000
Research and development expense                     1,319,000
Sales, general and administrative expense           14,118,000
                                                --------------
Income (loss) from operations                      171,539,000
Interest expense                                    74,094,000
Interest (income)                                   (6,461,000)
Minority interest expense                            2,927,000
(Income) loss from repurchase of debt issuances
Other (income) expense, net                          2,686,000
                                                --------------
Loss before organization items, benefit for
income taxes and cumulative effect of a change
in accounting principle                             98,293,000
Reorganization items                                 4,346,000
                                                --------------
Loss before benefit for income taxes and
cumulative effect of a change in accounting
principle                                           93,947,000
Provision (benefit) for income taxes                 1,723,000
                                                --------------
Net income                                         $92,224,000
                                                ==============

Headquartered in San Jose, California, Calpine Corporation
(OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies  
customers and communities with electricity from clean, efficient,
natural gas-fired and geothermal power plants.  Calpine owns,
leases and operates integrated systems of plants in 21 U.S. states
and in three Canadian provinces.  Its customized products and
services include wholesale and retail electricity, gas turbine
components and services, energy management and a wide range of
power plant engineering, construction and maintenance and
operational services.

The Company filed for chapter 11 protection on Dec. 20, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-60200).  Richard M. Cieri, Esq.,
Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G.
Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their
restructuring efforts.  Michael S. Stamer, Esq., at Akin Gump
Strauss Hauer & Feld LLP, represents the Official Committee of
Unsecured Creditors.  As of Dec. 19, 2005, the Debtors listed
$26,628,755,663 in total assets and $22,535,577,121 in total
liabilities.  (Calpine Bankruptcy News, Issue No. 27; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


DELPHI CORPORATION: Posts $533 Million Net Loss in August 2006
--------------------------------------------------------------

                    Delphi Corporation, et al.
               Unaudited Consolidated Balance Sheet
                       As of August 31, 2006
                          (In Millions)

                              ASSETS

Current assets:         
   Cash and cash equivalents                               $855
   Restricted cash                                          105
   Accounts receivable, net
      General Motors and affiliates                       1,448
      Other third parties                                 1,624
      Non-Debtor subsidiaries                               326
   Notes receivable from non-Debtor subsidiaries            359
   Inventories, net
      Productive material, work-in-process and supplies     932
      Finished goods                                        315
   Prepaid expenses and other                               297
                                                        -------
      TOTAL CURRENT ASSETS                                6,261

Long-term assets:
   Property, net                                          2,535
   Investment in affiliates                                 375
   Investments in non-Debtor subsidiaries                 3,468
   Goodwill                                                 152
   Other intangible assets                                   40
   Pension intangible assets                                678
   Other                                                    336
                                                        -------
TOTAL ASSETS                                            $13,845
                                                        =======

              LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities not subject to compromise:
   Secured debt in default                               $2,492
   Accounts payable                                       1,266
   Accounts payable to non-Debtor subsidiaries              316
   Accrued liabilities                                    1,423
                                                        -------
   TOTAL CURRENT LIABILITIES                              5,497

Long-term liabilities not subject to compromise:
   Debtor-in-possession financing                           250
   Employee benefit plan obligations and other              758
                                                        -------
   TOTAL LONG-TERM LIABILITIES                            1,008

Liabilities subject to compromise                        16,206
                                                        -------
   TOTAL LIABILITIES                                     22,711
          
Stockholders' deficit:         
   Common stock                                               6
   Additional paid-in capital                             2,761
   Accumulated deficit                                  (10,134)
   Minimum pension liability                             (1,452)
   Accumulated other comprehensive loss                       5
   Treasury stock, at cost (3.2 million shares)             (52)
                                                        -------
   TOTAL STOCKHOLDERS' DEFICIT                           (8,866)
                                                        -------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT             $13,845
                                                        =======


                    Delphi Corporation, et al.
          Unaudited Consolidated Statement of Operations
                   Month Ended August 31, 2006
                          (In Millions)

Net sales:                  
   General Motors and affiliates                           $950
   Other customers                                          619
   Intercompany non-Debtor subsidiaries                      48
                                                        -------
Total net sales                                           1,617
                                                        -------
Operating expenses:                  
   Cost of sales                                          1,617
   U.S. employee special attrition program charges          372
   Selling, general and administrative                       83
   Depreciation and amortization                             53
   Goodwill and long-lived asset impairment charges           -
                                                        -------
Total operating expenses                                  2,125
                                                        -------
Operating loss                                             (508)

Interest expense                                            (32)
Other expense, net                                            -

Reorganization items                                         (4)
Income tax benefit (expense)                                  -
Equity income from non-consolidated subsidiaries              2
Equity income from non-Debtor subsidiaries, net of tax        9
Cumulative effect of accounting charge, net of tax            -
                                                        -------
NET LOSS                                                  ($533)
                                                        =======


                    Delphi Corporation, et al.
          Unaudited Consolidated Statement of Cash Flows
                   Month Ended August 31, 2006
                           (In Millions)

Cash flows from operating activities:         
   Net loss                                               ($533)
   Adjustments to reconcile net loss
    to net cash provided by operating activities:         
    Depreciation and amortization                            53
    Pension and other postretirement benefit expenses       123
    Equity income from unconsolidated subsidiaries, net      (2)
    Equity income from non-Debtor subsidiaries, net of tax   (9)
    Reorganization items                                      4
    U.S. employee attrition program charges                 372
   Changes in operating assets and liabilities:         
    Accounts receivable, net                                (28)
    Inventories, net                                         51
    Prepaid expenses and other                              (11)
    Accounts payable, accrued and other long-term debts     (30)
    Pension contributions                                    (1)
    Other postretirement benefit payments                   (25)
    Receipts (payments) for reorganization items, net        (3)
    Other                                                    (1)
                                                        -------
Net cash used in operating activities                       (40)
        
Cash flows from investing activities:
   Capital expenditures                                     (14)
   Increase in restricted cash                              (31)
   Proceeds from sale of property                             2
   Other                                                     10
                                                        -------
Net cash used in investing activities                       (33)

Cash flows from financing activities:
   Repayments under cash overdraft                           (4)
   Repayments of borrowings under other debt                 (1)
                                                        -------
Net cash used in financing activities                        (5)
                                                        -------
Decrease in cash and cash equivalents                       (78)
Cash and cash equivalents at beginning of period            933
                                                        -------
Cash and cash equivalents at end of period                 $855
                                                        =======

Based in Troy, Mich., Delphi Corporation -- http://www.delphi.com/
-- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology.  The Company's technology and
products are present in more than 75 million vehicles on the road
worldwide.  The Company filed for chapter 11 protection on
Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm.
Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq.,
at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors
in their restructuring efforts.  Robert J. Rosenberg, Esq.,
Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham &
Watkins LLP, represents the Official Committee of Unsecured
Creditors.  As of Aug. 31, 2005, the Debtors' balance sheet showed
$17,098,734,530 in total assets and $22,166,280,476 in total
debts.  (Delphi Bankruptcy News, Issue No. 43; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


ENTERGY NEW ORLEANS: Earns $1.5 Million in August 2006
------------------------------------------------------

                   Entergy New Orleans, Inc.
                        Balance Sheet
                    As of August 31, 2006
                       (in thousands)

ASSETS
Current Assets:
Cash and cash equivalents                              $12,985
Cash                                                         -
Temporary cash investments                                   -
                                                   -----------
Total cash and cash equivalents                         12,985

Accounts receivable:
Customer                                                73,383
Allowance for doubtful accounts                        (18,558)
Associated companies                                    14,622
Other                                                    7,494
Accrued unbilled revenues                               29,033
                                                   -----------
Total accounts receivable                              105,974

Deferred fuel costs                                     30,593
Fuel inventory                                           3,530
Materials and supplies                                   6,718
Prepayments and other                                    3,939
                                                   -----------
Total current assets                                   163,739

Other Property and Investments
Investment in affiliates                                 3,259
Non-utility property at cost                             1,107
                                                   -----------
Total other property and investments                     4,366

Utility Plant
Electric                                               745,387
Natural gas                                            192,822
Construction work in progress                           54,415
                                                   -----------
Total Utility Plant                                    992,624

Less - accumulated depreciation and amortization       435,065
                                                   -----------
Utility plant - net                                    557,559

Deferred Debits and Other Assets
Regulatory assets:
Other regulatory assets                                171,678
Long term receivables                                    1,090
Other                                                   22,402
                                                   -----------
Total deferred debits and other assets                 195,170
                                                   -----------
TOTAL ASSETS                                          $920,834
                                                   ===========

LIABILITIES:

Postpetition liabilities:
Taxes payable                                           $4,684
Accounts payable                                        42,112
DIP credit facility                                     42,749
                                                   -----------
Total postpetition liabilities                          89,545

Current liabilities:
Currently maturing long-term debt                            -
Notes payable                                                -
Accounts payable:
  Associated companies                                  64,300
  Other                                                 82,003
Customer deposits                                       12,871
Taxes accrued                                           13,765
Accumulated deferred income taxes                        3,819
Interest accrued                                         3,448
Energy efficiency program provision                          -
Other                                                    3,342
                                                   -----------
Total current liabilities                              183,548

Non-current liabilities:
Accumulated deferred income taxes & taxes accrued      110,760
Accumulated deferred investment tax credits              3,288
SFAS 109 regulatory liability - net                     59,626
Other regulatory liabilities                                 -
Accumulated provisions                                  10,448
Pension liability                                       40,660
Long-term debt                                         229,869
Other                                                    4,300
                                                   -----------
Total non-current liabilities                          458,951
                                                   -----------
Total Liabilities                                      732,044

Commitments and Contingencies:

SHAREHOLDERS' EQUITY

Preferred stock without sinking fund                    19,780
Common stock, $4 par value, authorized
10,000,000 shares; issued and
outstanding 8,435,900 shares in
2005 and 2004                                           33,744
Paid-in capital                                         36,294
Retained earnings -- prepetition                        99,593
Retained earnings -- postpetition                         (621)
                                                   -----------
Total shareholders equity                              188,790
                                                   -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY            $920,834
                                                   ===========


                  Entergy New Orleans, Inc.
                  Statement of Operations
                Month Ended August 31, 2006
                      (in thousands)

Operating Revenues
Domestic electric                                      $54,293
Natural gas                                              5,669
                                                   -----------
Total operating revenues                                59,962

Operating Expenses:
Operation and maintenance
  Fuel                                                  21,994
  Purchased power                                       15,264
  Other operation and maintenance                       12,859
Taxes other than income taxes                            3,423
Depreciation and amortization                            2,924
Other regulatory charges - net                             347
                                                   -----------
Total operating expenses                                56,811
                                                   -----------
Operating income                                         3,151

Other income:
Allowance for equity funds used
during construction                                         63
Interest and dividend income                               255
Miscellaneous - net                                        (46)
                                                   -----------
Total other income                                         272

Interest and other charges:
Interest on long-term debt                                  61
Other interest-net                                         541
Allowance for borrowed funds used
during construction                                        (52)
                                                   -----------
Total interest and other charges                           550

Income (loss) before income taxes                        2,873
Income taxes                                             1,279
                                                   -----------
NET INCOME                                              $1,594
                                                   ===========


                  Entergy New Orleans, Inc.
         Cash Receipts and Disbursement Statement
                Month Ended August 31, 2006

Beginning cash balance                             $31,664,092

Cash receipts                                       66,917,593
Cash disbursements                                 (85,596,094)
                                                   -----------
Net cash flow                                      (18,678,501)
                                                   -----------
ENDING CASH BALANCE                                $12,985,591
                                                   ===========

Headquartered in Baton Rouge, Louisiana, Entergy New Orleans Inc.,
-- http://www.entergy-neworleans.com/-- is a wholly owned  
subsidiary of Entergy Corporation.  Entergy New Orleans provides
electric and natural gas service to approximately 190,000 electric
and 147,000 gas customers within the city of New Orleans.  Entergy
New Orleans is the smallest of Entergy Corporation's five utility
companies and represents about 7% of the consolidated revenues and
3% of its consolidated earnings in 2004.  Neither Entergy
Corporation nor any of Entergy's other utility and non-utility
subsidiaries were included in Entergy New Orleans' bankruptcy
filing.  Entergy New Orleans filed for chapter 11 protection on
Sept. 23, 2005 (Bankr. E.D. La. Case No. 05-17697).  Elizabeth J.
Futrell, Esq., and R. Partick Vance, Esq., at Jones, Walker,
Waechter, Poitevent, Carrere & Denegre, L.L.P., represent the
Debtor in its restructuring efforts.  Carey L. Menasco, Esq.,
Philip Kirkpatrick Jones, Jr., Esq., and Joseph P. Hebert, Esq.,
at Liskow & Lewis, APLC, represent the Official Committee of
Unsecured Creditors.  When the Debtor filed for protection from
its creditors, it listed total assets of $703,197,000 and total
debts of $610,421,000.  (Entergy New Orleans Bankruptcy News,
Issue No. 24; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


FLYI INC: Posts $490,610 Net Loss in August 2006
------------------------------------------------

                             FLYi Inc.
                    Consolidated Balance Sheet
                      As of August 31, 2006

ASSETS

Current assets
      Cash                                           $1,211,356
      Short term investments                                  -
      Net accounts receivable                       379,627,803
      IC Notes receivable                             4,252,000
                                                    -----------
      Total Current Assets                          385,091,159
                                                    -----------
Other assets
      Restricted cash                                         -
      Long term investments                           7,435,000
      Other assets                                   14,055,412
                                                    -----------
      Total Other Assets                             21,490,412
                                                    -----------
      TOTAL ASSETS                                 $406,581,571
                                                    ===========

Liabilities not subject to compromise                         -
Liabilities subject to compromise
      Secured debt                                            -
      Priority debt                                           -
      Unsecured debt                               $250,482,471
                                                    -----------
      Total Liabilities                             250,482,471
                                                    -----------
Owner Equity
      Common stock                                    1,088,716
      Additional paid in capital                    158,254,512
      Treasury stock                                (35,717,477)
      Prepetition retained earnings                  39,858,773
      Postpetition retained earnings                 (7,385,424)
                                                    -----------
      Net Owners' Equity                            156,099,100
                                                    -----------
      TOTAL LIABILITIES AND OWNER'S EQUITY         $406,581,571
                                                    ===========


                             FLYi Inc.
                     Statement of Operations
                           August 2006

Revenues                                                      -
Other (income) expenses
      Interest income                                   ($4,593)
      Interest expense                                   (3,592)
      Other miscellaneous                                     -
                                                    -----------
Net Profit (Loss) before reorganization items             8,185

Reorganization items
      Professional fees                                 498,795
      U.S. Trustee Quarterly Fees                             -
      Income Taxes                                            -
                                                    -----------
Net Profit (Loss)                                     ($490,610)
                                                    ===========

Headquartered in Dulles, Virginia, FLYi, Inc., aka Atlantic Coast
Airlines Holdings, Inc. -- http://www.flyi.com/-- is the parent  
of Independence Air Inc., a small airline based at Washington
Dulles International Airport.  The Debtor and its six affiliates
filed for chapter 11 protection on Nov. 7, 2005 (Bankr. D. Del.
Case Nos. 05-20011 through 05-20017).  Brendan Linehan Shannon,
Esq., M. Blake Cleary, Esq., and Matthew Barry Lunn, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  Brett H. Miller, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., represents the Official
Committee of Unsecured Creditors.  As of Sept. 30, 2005, the
Debtors listed assets totaling $378,500,000 and debts totaling
$455,400,000.  (FLYi Bankruptcy News, Issue No. 26; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


FLYI INC: Independence Air Earns $6.8 Million in August 2006
------------------------------------------------------------

                       Independence Air Inc.
                    Consolidated Balance Sheet
                      As of August 31, 2006

ASSETS

Current assets
      Cash                                          $46,851,003
      Short term investments                         95,850,000
      Restricted cash                                 1,570,975
      Net accounts receivable                        98,342,810
      Net expandable parts and fuel                      62,636
      Net prepaid expenses                            5,672,822
      Deferred tax asset                                     (1)
                                                    -----------
Total current assets                                248,350,245
                                                    -----------
Other assets
      Restricted cash                                14,327,725
      Aircraft deposits                              12,662,000
      Other assets                                      420,099
                                                    -----------
Total other assets                                   27,409,824
                                                    -----------
      TOTAL ASSETS                                 $275,760,069
                                                    ===========
LIABILITIES

Liabilities not subject to compromise
      Accounts payable                               $4,112,791
      Air traffic liability                             833,822
      Accrued liabilities                             1,914,602
      Amounts due to insiders                            67,917
                                                    -----------
Total Postpetition Liabilities                        6,929,132
                                                    -----------

Liabilities subject to compromise
      Secured debt                                    1,124,556
      Priority debt                                  10,429,235
      Unsecured debt                                392,177,384
      Other accruals                                 17,927,277
                                                    -----------
Total prepetition liabilities                       421,658,453
                                                    -----------
Total Liabilities                                   428,587,585
                                                    -----------
Owner Equity
      Common stock                                            -
      Treasury stock                                  7,435,000
      Owner's equity account                                  -
      Prepetition retained earnings                (243,575,613)
      Postpetition retained earnings                 83,313,098
                                                    -----------
Net Owners' Equity                                 (152,827,515)
                                                    -----------
      TOTAL LIABILITIES AND OWNER'S EQUITY         $275,760,069
                                                    ===========


                       Independence Air Inc.
                     Statement of Operations
                           August 2006

Revenues
Operating Revenue
      Passenger revenue                                       -
      Other revenue                                        $250
                                                    -----------
Total operating revenues                                    250
                                                    -----------
Operating expenses
Insider compensation                                     23,333
      Wages                                              89,433
      Fringes and benefits                              148,321
      Aircraft fuel                                      (3,764)
      Aircraft maintenance and materials                 94,073
      Facilities rents                                   39,271
      Landing fees                                       17,596
      Depreciation and amortization                           -
      Others                                         (7,225,272)
      Retirement & restructuring charge                  56,988
                                                    -----------
Total operating expense                              (6,760,022)
                                                    -----------
Net operating income (loss)                           6,760,272
                                                    -----------
Net Profit (Loss) before other income & expenses      6,760,272
                                                    -----------
Other (income) expenses
      Interest income                                  (524,994)
      Interest expense                                    4,115
      Other miscellaneous                               (77,639)
                                                    -----------
      Total other (income) expense                     (598,518)
                                                    -----------
Net Profit (Loss) before reorganization items         7,358,790
                                                    -----------
Reorganization items
      Professional fees                                 498,795
      Income Taxes                                            -
                                                    -----------
Net Profit (Loss)                                    $6,859,995
                                                    ===========

Headquartered in Dulles, Virginia, FLYi, Inc., aka Atlantic Coast
Airlines Holdings, Inc. -- http://www.flyi.com/-- is the parent  
of Independence Air Inc., a small airline based at Washington
Dulles International Airport.  The Debtor and its six affiliates
filed for chapter 11 protection on Nov. 7, 2005 (Bankr. D. Del.
Case Nos. 05-20011 through 05-20017).  Brendan Linehan Shannon,
Esq., M. Blake Cleary, Esq., and Matthew Barry Lunn, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  Brett H. Miller, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., represents the Official
Committee of Unsecured Creditors.  As of Sept. 30, 2005, the
Debtors listed assets totaling $378,500,000 and debts totaling
$455,400,000.  (FLYi Bankruptcy News, Issue No. 26; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


NORTHWEST AIRLINES: Posts $943 Million Net Loss for August 2006
---------------------------------------------------------------

                 Northwest Airlines Corporation
        Unaudited Condensed Consolidated Balance Sheet
                     As of August 31, 2006

ASSETS

Current assets:
   Cash and cash equivalents                     $1,396,000,000
   Unrestricted short-term investments              584,000,000
   Restricted cash, cash equivalents &
      short-term investments                        685,000,000
   Accounts receivable, net                         703,000,000
   Flight equipment spare parts, net                119,000,000
   Prepaid expenses & other                         381,000,000
                                                ---------------
Total current assets                              3,868,000,000

Property and equipment:
   Flight equipment, net                          7,223,000,000
   Other property & equipment, net                  730,000,000
                                                ---------------
Total property & equipment                        7,953,000,000

Flight Equipment under capital leases, net           22,000,000

Other assets:
   Intangible pension asset                         363,000,000
   International routes                             634,000,000
   Investments in affiliated companies               39,000,000
   Other                                            910,000,000
                                                ---------------
Total other assets                                1,946,000,000
                                                ---------------
Total Assets                                    $13,789,000,000
                                                ===============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Air traffic liability                         $1,714,000,000
   Accounts payable & other liabilities           1,385,000,000
   Current maturities of long-term debt
      & capital lease obligations                   140,000,000
                                                ---------------
Total current liabilities                         3,239,000,000

Long-term debt                                    2,897,000,000

Deferred Credits & other liabilities:
   Long-term pension & postretirement
      Health care benefits                          135,000,000
   Other                                            116,000,000
                                                ---------------
Total deferred credits & other liabilities          251,000,000

Liabilities subject to compromise                14,980,000,000

Preferred redeemable stock subject to compromise    278,000,000

Common Stockholders' Equity (Deficit)
   Common stock                                       1,000,000
   Additional paid-in capital                     1,503,000,000
   Accumulated deficit                           (6,779,000,000)
   Accumulated other comprehensive
      income (loss)                              (1,568,000,000)
   Treasury stock                                (1,013,000,000)
                                                ---------------
Total common stockholders' equity (deficit)      (7,856,000,000)
                                                ---------------
Total Liabilities &
   Stockholders' Equity (Deficit)               $13,789,000,000
                                                ===============


                 Northwest Airlines Corporation
   Unaudited Condensed Consolidated Statement of Operations
                 For Month Ended August 31, 2006

Operating Revenues
   Passenger                                       $904,000,000
   Regional carrier revenues                        127,000,000
   Cargo                                             85,000,000
   Other                                             95,000,000
                                                ---------------
   Total Operating Revenues                       1,211,000,000

Operating Expenses
   Aircraft fuel and taxes                          345,000,000
   Salaries, wages, and benefits                    224,000,000
   Selling and marketing                             68,000,000
   Aircraft maintenance materials and repair         66,000,000
   Other rentals and landing fees                    51,000,000
   Depreciation and amortization                     41,000,000
   Aircraft rentals                                  17,000,000
   Regional carrier expenses                        120,000,000
   Other                                            112,000,000
                                                ---------------
   Total Operating Expenses                       1,044,000,000

Operating Income (Loss)                             167,000,000

Other Income (Expense)
   Interest expense, net                            (48,000,000)
   Investment income                                 10,000,000
   Reorganization items, net                     (1,074,000,000)
   Other, net                                         2,000,000
                                                ---------------
   Total other income (expense)                  (1,110,000,000)
                                                ---------------
Income (Loss) Before Income Taxes                  (943,000,000)

   Income tax expense (benefit)                               -
                                                ---------------
Net Income (Loss)                                 ($943,000,000)
                                                ===============


                 Northwest Airlines Corporation
   Unaudited Condensed Consolidated Statements of Cash Flows
                 For Month Ended August 31, 2006

Cash Flows from Operating Activities:
   Net income (loss)                              ($943,000,000)
   Adjustments to reconcile net loss to net
      cash provided by (used in)
      operating activities:
      Depreciation and amortization                  41,000,000
      Pension and other postretirement benefit
         contributions less than expense             17,000,000
      Changes in certain assets & liabilities       (66,000,000)
      Long-term vendor deposits/holdbacks            22,000,000
      Reorganization items                        1,074,000,000
      Other, net                                    (11,000,000)
                                                ---------------
Net cash provided by operating activities           134,000,000

Cash Flows from Reorganization Activities:
   Net cash provided by (used in)
      reorganization activities                      (2,000,000)

Cash Flows from Investing Activities:
   Capital expenditures                              (8,000,000)
   Proceeds from sales of short term investment      10,000,000
   Decrease (increase) in restricted
      cash, cash equivalents &
      short-term investments                        (70,000,000)
   Other, net                                                 -
                                                ---------------
Net cash provided by (used in) investing
   activities                                       (68,000,000)

Cash Flows from Financing Activities:
   Proceeds from long-term debt                   1,225,000,000
   Payments of long-term debt and capital
      lease obligations                          (1,018,000,000)
   Other, net                                       (22,000,000)
                                                ---------------
Net cash provided by (used in)
   financing activities                             185,000,000
                                                ---------------
Increase (Decrease) in Cash and
   Cash Equivalents                                 249,000,000

Cash & cash equivalents at beginning of period    1,147,000,000
                                                ---------------
Cash & cash equivalents at end of period         $1,396,000,000
                                                ===============

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/--
is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its travel
partners serve more than 900 cities in excess of 160 countries on
six continents.  The Company and 12 affiliates filed for chapter
11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No.
05-17930).  Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq.,
at Cadwalader, Wickersham & Taft LLP in New York, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in
Washington represent the Debtors in their restructuring efforts.
The Official Committee of Unsecured Creditors has retained Akin
Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the
Debtors' chapter 11 cases.  When the Debtors filed for protection
from their creditors, they listed $14.4 billion in total assets
and $17.9 billion in total debts.  (Northwest Airlines Bankruptcy
News, Issue Nos. 40; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


PERFORMANCE TRANSPORT: Files August 2006 Monthly Operating Report
-----------------------------------------------------------------
Performance Transportation Services, Inc., and its
debtor-affiliates filed with the U.S. Bankruptcy Court for the
Western District of New York their Monthly Operating Statement for
the period August 1 to 31, 2006.

The Operating Statements do not include a Balance Sheet or
Statement of Operations.  The Debtors, however, disclosed a
$2,932,900 operating net loss for the period.

                 Performance Logistics Group, Inc.
         In re. Leaseway Motorcar Transport Company, et al.
                    U.S. Operations Cash Flow
               For the Month Ended August 31, 2006

Book balance:
   Opening book balance, 08/01/06                   $11,007,720
                                                    -----------
Receipts
   Customers                                         19,957,414
   Miscellaneous receipts                               189,929
                                                    -----------
   Total receipts                                    20,147,343
                                                    -----------

Disbursements
   Payroll, payroll taxes & fringe benefits          11,386,185
   Insurance & cargo losses                           3,044,085
   Fuel and fuel taxes                                3,671,977
   Parts, tires, other operating supplies & expenses  3,688,952
   Licenses, permits & tolls                          1,521,755
   Tractor, trailer lease payments                      154,135
   Building, land, service vehicles and other rents     360,583
   Interest & bank fee payments                       1,560,709
   Income, franchise & property taxes                     1,989
   Misc/DIP Line (Draw) / Repayments                          -
   Capital expenditures                                 439,400
   Professional Fees                                    997,894
                                                    -----------
   Total Disbursements                               26,827,664
                                                    -----------
Closing Book Balance, End of Month                   $4,327,399
                                                    ===========

A full-text copy of the Debtors' August 2006 Operating Statements
is available for free at http://ResearchArchives.com/t/s?1307

Headquartered in Wayne, Michigan, Performance Transportation
Services, Inc. -- http://www.pts-inc.biz/-- is the second largest  
transporter of new automobiles, sport-utility vehicles and light
trucks in North America.  The Company provides transit stability,
cargo damage elimination and proactive customer relations that are
second to none in the finished vehicle market segment.  The
company's chapter 11 case is administered jointly under Leaseway
Motorcar Transport Company.

Headquartered in Niagara Falls, New York, Leaseway Motorcar
Transport Company Debtor and 13 affiliates filed for chapter 11
protection on Jan. 25, 2006 (Bankr. W.D.N.Y. Case No. 06-00107).
James A. Stempel, Esq., James W. Kapp, III, Esq., and Jocelyn A.
Hirsch, Esq., at Kirkland & Ellis, LLP, and Garry M. Graber, Esq.,
at Hodgson Russ LLP represent the Debtors in their restructuring
efforts.  David Neier, Esq., at Winston & Strawn LLP, represents
the Official Committee of Unsecured Creditors.  When the Debtors
filed for protection from their creditors, they estimated assets
between $10 million and $50 million and more than $100 million in
debts.  (Performance Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc. http://bankrupt.com/newsstand/or  
215/945-7000)


VESTA INSURANCE: Posts $16,423 Net Loss for August 2006
-------------------------------------------------------

                    Vesta Insurance Group, Inc.
                         Income Statement
                   Month ending August 31, 2006


Revenue from Total Sales                                    $0
Less:
   Cost of Sales                                             0
                                                  ------------
Gross Profit                                                 0

Less:
   Operating Expenses                                   61,382
                                                  ------------
Net Profit Operations                                  (61,382)

Non-Operating Income (Expenses)                         
   Interest Income                                      49,959
   Legal Expense                                        (5,000)
                                                  ------------
Net Profit (Loss)                                     ($16,423)
                                                  ============


                    Vesta Insurance Group, Inc.
            Schedule of Cash Receipts and Disbursements
                  Month ending August 31, 2006

Cash On Hand (Beginning)                            $5,823,080

Cash Receipts:
   Accounts Receivable                                       0
   Cash Sales                                                0
   Loan Proceeds                                             0
   Sale of Property                                          0
   Interest                                             49,959
                                                  ------------
Total Receipts                                          49,959

Cash Disbursements:
   Financing costs, fees, interest                           0
   Advertising                                               0
   Automobiles/Vehicles (repair and maintenance)             0
   Bank Fees                                                45
   Commissions/Contract Labor                                0
   Insurance Expense                                         0
   Interest Paid                                             0
   Inventory Purchased                                       0
   Legal Fees                                            5,000
   Postage                                                   0
   Rent/Lease Payments on Real Estate                        0
   Repairs and Maintenance                                   0
   Salaries/Wages (portion paid to J.G. Gaines, Inc.)   61,337
   Secured Loan Payments                                     0
   Supplies                                                  0
   Taxes                                                     0
   Unsecured Loan Payments                                   0
   Utilities                                                 0
   Others                                                    0
                                                  ------------
Total Disbursements                                     66,382

Surplus or Deficit                                     (16,423)
                                                  ------------
Cash on Hand (End)                                  $5,806,657
                                                  ============

Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding  
company for a group of insurance companies that primarily offer
property insurance in targeted states.

Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
Company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on
Aug. 8, 2006 (Bankr. N.D. Ala. Case No. 06-02517).  Eric W.
Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP, represents
the Debtor.  R. Scott Williams, Esq., at Haskell Slaughter Young &
Rediker, LLC, represents the petitioning creditors.  In its
schedules of assets and liabilities, Vesta listed $14,919,938 in
total assets and $214,278,847 in total liabilities.

J. Gordon Gaines, Inc., is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers.  The Company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts.   In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.

On Aug. 1, 2006, the District Court of Travis County, Texas
entered the Order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc.  (Vesta
Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


VESTA INSURANCE: Gordon Gaines Earns $116,204 in August 2006
------------------------------------------------------------

                      J. Gordon Gaines, Inc.
                         Income Statement
                   Month ending August 31, 2006

Revenue from Total Sales                               $78,762
Less:
   Cost of Sales                                             0
                                                  ------------
Gross Profit                                            78,762

Less:
   Operating Expenses                                   10,000
                                                  ------------
Net Profit Operations                                   68,762

Non-Operating Income (Expenses)
   Interest Earned                                       3,994
   Non-operational income                               43,448
                                                  ------------
Net Profit (Loss)                                     $116,204
                                                  ============

                      J. Gordon Gaines, Inc.
            Schedule of Cash Receipts and Disbursements
                  Month ending August 31, 2006

Cash On Hand (Beginning)                              $968,498

Cash Receipts:
   Accounts Receivable                                       0
   Management Fees                                      78,762
   Loan Proceeds                                             0
   Sale of Property                                          0
   Interest Earned                                       3,994
   Non-operational Income                               43,448
   Funding by Texas Receiver                         1,077,201
   Intercompany insurance operations                 1,582,180
                                                  ------------
Total Receipts                                      $2,785,585

Cash Disbursements:
   Financing costs, fees, interest                       1,213    
   Advertising                                               0
   Automobiles/Vehicles (repair and maintenance)             0
   Bank Fees                                                 0
   Commissions/Contract Labor                                0
   Insurance Expense                                   126,489      
   Interest Paid                                             0
   Inventory Purchased                                       0    
   Legal Fees                                            5,000
   Postage                                               5,000
   Rent/Lease Payments on Real Estate                  132,163
   Repairs and Maintenance                                   0
   Salaries/Wages (portion paid to J.G. Gaines, Inc.)  632,519
   Secured Loan Payments                                     0
   Supplies                                             21,233
   Taxes                                                     0
   Unsecured Loan Payments                                   0
   Utilities                                                34
   Others                                            1,582,180
                                                  ------------
Total Disbursements                                  2,505,831

Surplus or Deficit                                     279,754
                                                  ------------
Cash on Hand (End)                                  $1,248,252
                                                  ============

Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding  
company for a group of insurance companies that primarily offer
property insurance in targeted states.

Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
Company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on
Aug. 8, 2006 (Bankr. N.D. Ala. Case No. 06-02517).  Eric W.
Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP, represents
the Debtor.  R. Scott Williams, Esq., at Haskell Slaughter Young &
Rediker, LLC, represents the petitioning creditors.  In its
schedules of assets and liabilities, Vesta listed $14,919,938 in
total assets and $214,278,847 in total liabilities.

J. Gordon Gaines, Inc., is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers.  The Company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts.   In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.

On Aug. 1, 2006, the District Court of Travis County, Texas
entered the Order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc.  (Vesta
Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 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/

On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts.  The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.

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
http://www.bankrupt.com/books/to order any title today.

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.  Marie
Therese V. Profetana, Shimero Jainga, Joel Anthony G. Lopez,
Melvin C. Tabao, Robert Max Quiblat, Rizande B. Delos Santos,
Cherry A. Soriano-Baaclo, Christian Q. Salta, Jason A. Nieva,
Lucilo M. Pinili, Jr., Tara Marie A. Martin and Peter A. Chapman,
Editors.

Copyright 2006.  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
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $725 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher Beard
at 240/629-3300.

                    *** End of Transmission ***