/raid1/www/Hosts/bankrupt/TCR_Public/061202.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, December 2, 2006, Vol. 10, No. 287
Headlines
ASARCO LLC: Files Amended Schedules Of Assets and Liabilities
ASARCO LLC: Earns $27.3 Million for Month Ended October 2006
COLLINS & AIKMAN: Posts $21.2MM Net Loss for Period Ended Oct. 28
DANA CORP: Files Amended Schedules of Assets and Liabilities
OWENS CORNING: Posts $13.2 Million Net Loss in July 2006
VESTA INSURANCE: Posts $340,676 Net Loss in October 2006
VESTA INSURANCE: Gaines Posts $195,947 Net Loss in October 2006
*********
ASARCO LLC: Files Amended Schedules Of Assets and Liabilities
-------------------------------------------------------------
ASARCO LLC delivered its amended Schedule F to the U.S. Bankruptcy
Court for the Southern District of Texas, including these
potential claimants:
* Financial Services Commission of Ontario,
* John Hensley,
* San Juan County Historical,
* SMS Demag AG,
* SMS Meer GmbH,
* Specialty Technical Publishers,
* State of Nebraska - Workers Comp., and
* U.S. Department of Treasury - FMS.
The potential creditors have until Jan. 28, 2007, to file
proofs of claim against the Debtors.
Tucson, Ariz.-based 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. 33; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
ASARCO LLC: Earns $27.3 Million for Month Ended October 2006
------------------------------------------------------------
ASARCO LLC, et al.
Balance Sheet
As of October 31, 2006
ASSETS
Current Assets:
Cash $323,773,000
Restricted Cash 25,966,000
Accounts receivable, net 129,724,000
Inventory 314,775,000
Prepaid expenses 10,202,000
Deferred income tax assets 0
Other current assets 27,816,000
--------------
Total Current Assets 832,256,000
Net property, plant and equipment 415,563,000
Other Assets
Investments in subs 89,501,000
Advances to affiliates 13,397,000
Prepaid pension & retirement plan 78,749,000
Non-current deferred tax asset 40,954,000
Other 138,292,000
--------------
Total assets $1,608,711,000
==============
LIABILITIES
Postpetition liabilities:
Accounts payable $37,886,000
Accrued liabilities 30,041,000
Debtor-in-possession financing 0
--------------
Total postpetition liabilities 67,927,000
Prepetition liabilities:
Not subject to compromise - credit 818,000
Not subject to compromise - other 123,678,000
Advances from affiliates 28,683,000
Subject to compromise 889,904,000
--------------
Total prepetition liabilities 1,043,083,000
--------------
Total liabilities $1,111,011,000
--------------
OWNERS' EQUITY (DEFICIT)
Common stock 508,325,000
Additional paid-in capital 104,578,000
Other comprehensive income (124,134,000)
Retained earnings: filing date (531,162,000)
--------------
Total prepetition owners' equity (42,394,000)
Retained earnings: post-filing date 540,094,000
--------------
Total owners' equity (net worth) 497,700,000
Total liabilities and owners' equity $1,608,711,000
==============
ASARCO LLC, et al.
Consolidated Statement of Operations
Month Ending October 31, 2006
Sales $115,041,000
Cost of products and services 96,317,000
---------------
Gross profit 18,724,000
Operating expenses:
Selling and general & admin expenses 323,000
Depreciation & amortization 2,690,000
Provision accretion expense of asset
retirement obligation 143,000
---------------
Operating income 15,568,000
Interest expense 60,000
Interest income (2,050,000)
Reorganization expenses 2,338,000
Other miscellaneous (income) expenses (12,680,000)
---------------
Income (loss) before taxes 27,899,000
Income taxes 544,000
---------------
Net income (loss) $27,355,000
===============
ASARCO LLC, et al.
Consolidated Cash Receipts & Disbursements
Month Ending October 31, 2006
Receipts $120,270,000
Disbursements:
Inventory material 33,090,000
Operating disbursements 57,097,000
Capital expenditures 3,266,000
--------------
Total disbursements 93,453,000
Operating cash flow 26,817,000
Reorganization disbursements 3,237,000
--------------
Net cash flow 23,580,000
Net payments to secured Lenders 0
--------------
Net change in cash 23,580,000
Beginning cash balance 326,158,000
--------------
Ending cash balances $349,738,000
==============
About ASARCO LLC
Tucson, Ariz.-based 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. 33; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
COLLINS & AIKMAN: Posts $21.2MM Net Loss for Period Ended Oct. 28
-----------------------------------------------------------------
Collins & Aikman Corporation
Balance Sheet
As of October 28, 2006
ASSETS
Cash $97,090,423
Accounts receivable-trade, net 150,137,612
Other non-trade receivables 6,999,676
Inventories, net 76,633,156
Tooling and molding, net-current 31,262,601
Prepaids & other current assets 52,303,099
Deferred tax assets-current 0
---------------
Total Current Assets 414,426,567
Investments in subsidiaries 2,530,511,519
Fixed assets, net 290,786,671
Goodwill, net 978,554,071
Deferred tax assets-long term 0
Tooling and molding, net-long term 9,336,590
Other non-current assets 84,611,203
Intercompany accounts - net 89,045,820
Prepetition intercompany - net 706,832,773
---------------
TOTAL ASSETS $5,104,105,214
===============
LIABILITIES & EQUITY
Notes payable 0
Short term borrowings 0
Advance on receivables 0
Current portion-long term debt 243,511,652
Current portion-capital leases 0
Accounts payable 34,300,368
Accrued interest payable 24,359,049
Accrued & other liabilities 112,517,206
Income taxes payable 4,465,275
---------------
Total Current Liabilities 419,153,549
Liabilities subject to compromise 2,435,560,707
---------------
Total Liabilities $2,854,714,256
Total Equity $2,249,390,958
---------------
TOTAL LIABILITIES & EQUITY $5,104,105,214
===============
Collins & Aikman Corporation
Income Statement
As of October 28, 2006
Net outside sales $98,166,501
I/C Net sales 10,887,681
---------------
Total sales 109,054,182
Cost of Sales 105,071,776
---------------
Gross profit 3,982,406
Selling, general & administrative expenses 20,582,160
---------------
Operating income (16,599,754)
Interest expenses, net 7,844,605
Intercompany interest, net (2,430,322)
Preferred stock accretion 0
Miscellaneous (income)/expense 30,049
Corporate allocation adjustment 0
Commission income (200,057)
Commission expense 0
Royalty income (444,928)
Royalty expense 0
Joint Venture (Income)/Expense 0
Minority interest in cons net income 0
Dividend income 0
Discount/Income for Carcorp. 0
Gain/(Loss) early extinguishments of debt 0
Discount/Premium on hedges 0
(Gain)/Loss on hedges 0
(Gain)/Loss on swaps 0
NAAIS Intercompany sales profit 0
Loss on sale of receivables 0
Restructuring provision 0
Foreign transactions - (Gain)/Loss (241,087)
Amort of discount on NPV of liabilities 0
(Gain)/Loss on sale-leaseback transaction 0
---------------
Income from continuing operations before taxes (21,158,014)
Federal income tax 0
State income tax 0
Foreign income tax 26,674
---------------
Income from continuing operations (21,184,688)
Discontinued operations 110,550
Gain/Loss on sale of divisions 0
Extraordinary items 0
Integration 0
---------------
NET INCOME (LOSS) ($21,295,238)
===============
Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems. The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world. The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring. Lazard Freres & Co., LLC, provides the Debtor
with investment banking services. Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee. When the Debtors
filed for protection from their creditors, they listed
$3,196,700,000 in total assets and $2,856,600,000 in total
debts. (Collins & Aikman Bankruptcy News, Issue No. 46;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DANA CORP: Files Amended Schedules of Assets and Liabilities
------------------------------------------------------------
Dana Corp. and its debtor-affiliates delivered to the U.S.
Bankruptcy Court for the Southern District of New York their
amended schedules of assets and liabilities on Nov. 10, 2006, to
reflect changes relating to intercompany receivables:
Debtor Assets Liabilities
------ ------ -----------
BWDAC, Inc. $683,315 $1,300,170
Coupled Products, Inc. 93,888,816 38,473,664
Dana International Holdings, Inc. 686,824,403 0
Dana Risk Management Services 1,460,403 0
Dana Technology, Inc. 193,933,269 1,300
Dorr Leasing Corporation 182,984 195,069
Echlin-Ponce, Inc. 14,049,522 1,541,740
Flight Operations, Inc. 1,296,811 195,082
Glacier Vandervell, Inc. 41,903,041 7,087,903
Hose & Tubing Products, Inc. 29,980,867 7,285,311
Long Automotive, LLC 108,167 0
Long Cooling, LLC 6,441,532 1,044,448
Long USA, LLC 35,665,110 3,412,964
Reinz Wisconsin Gasket, LLC 14,515,590 2,948,705
Spicer Heavy Axle & Brake, Inc. 12,075,858 2,826,738
Torque-Traction Integration 403,613,896 175,243,628
Torque-Traction Manufacturing 276,782,162 116,951,509
Torque-Traction Technologies 59,299,630 61,525,228
Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies. Dana employs 46,000 people in 28
countries. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.
The company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Sept. 30, 2005, the Debtors listed $7,900,000,000 in total assets
and $6,800,000,000 in total debts.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in
Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl
E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller
Buckfire & Co., LLC, serves as the Debtors' financial advisor and
investment banker. Ted Stenger from AlixPartners serves as Dana's
Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP,
represents the Official Committee of Unsecured Creditors. Fried,
Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the
Official Committee of Equity Security Holders. Stahl Cowen
Crowley, LLC serves as counsel to the Official Committee of Non-
Union Retirees.
The Debtors' exclusive period to file a plan expires on Jan. 3,
2007. They have until Mar. 5, 2007, to solicit acceptances to
that plan.
(Dana Corporation Bankruptcy News, Issue No. 27; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
OWENS CORNING: Posts $13.2 Million Net Loss in July 2006
--------------------------------------------------------
Owens Corning
Unaudited Balance Sheet
As of July 31, 2006
(In Thousands)
Current Assets:
Cash and cash equivalents $987,610
Receivables 434,229
Receivables - intercompany 1,066,829
Inventories, net of LIFO reserve 249,142
Insurance for asbestos litigation claims 0
Deferred income taxes 0
Income tax receivable 926
Other current assets 123,575
-----------
Total Current Assets 2,862,311
Other Assets:
Insurance for asbestos litigation claims 70,095
Restricted cash 204,337
Restricted cash and securities - Fibreboard 0
Deferred income taxes 1,639,425
Goodwill 48,568
Investment in affiliates 35,877
Investment in subsidiaries 2,022,050
Notes receivable - intercompany 5,270
Other non-current assets 388,078
-----------
Total Other Assets 4,413,700
Plant & Equipment:
Land 34,144
Buildings & leasehold improvements 553,054
Machinery & equipment 2,185,910
Construction in progress 175,264
Less: Accumulated Depreciation 1,609,453
-----------
Net Plant & Equipment 1,338,919
-----------
TOTAL ASSETS $8,614,930
===========
Liabilities not Subject to Compromise:
Accounts payable & accrued liabilities $585,604
Accrued postpetition interest 890,037
Intercompany liabilities 1,267,826
Short-term debt 0
Long-term debt - current portion 1,367
-----------
Total Current Liabilities 2,744,834
Long-Term Debt 9,096
Other:
Other employee benefits liability 242,446
Pension plan liability 576,322
Other liability 185,641
-----------
Total Non-Current Liabilities 1,004,409
-----------
Total Postpetition Liabilities 3,758,339
Prepetition Liabilities:
Accounts payable and accrued liabilities 265,330
Other employee benefits liability 172,942
Pension plan liability 0
Debt - US bank credit facility 1,450,986
Debt - bonds & other 1,500,651
Asbestos-related liability 6,166,734
Intercompany 2,452,666
Other 0
-----------
Total Prepetition Liabilities 12,009,309
-----------
Total Liabilities 15,767,649
Minority Interest 0
Stockholder's Equity:
Common stock 697,252
Deficit (7,504,736)
Accumulated Comprehensive Loss (5,144)
Other (340,091)
-----------
Net Stockholder's Equity (7,152,719)
-----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $8,614,930
===========
Owens Corning
Unaudited Statement of Operations
For the Month Ended July 31, 2006
(In Thousands)
Net sales $349,663
Cost of Sales 290,877
-----------
Gross Margin 58,787
Operating Expenses:
Marketing & administrative expenses 35,315
Science & technology expenses 1,939
Provision for asbestos litigation claims 0
Insider compensation 823
Restructure costs 0
Other 10,330
-----------
Income from Operations 10,380
Other Expenses:
Cost of borrowed funds 145
Other 0
-----------
Income Before Reorganization Items 10,235
Reorganization Items:
Professional fees 11,498
U.S. Trustee quarterly fees 5
Interest earned on accum. cash from Chapter 11 (3,619)
Contract rejection 0
(Gain) Loss from sale of equipment 0
(Gain) Loss from settlement of liabilities 0
Other reorganization expenses 2,019
-----------
Total Reorganization Expenses 9,903
-----------
Income (Loss) Before Income Taxes 332
Provision (Credit) for Income Taxes 13,601
-----------
Income (Loss) Before Minority Interest and Equity
in Net Income (Loss) of Affiliates (13,269)
Minority interest 0
Equity in net income (loss) of affiliates 0
-----------
Net Income (Loss) ($13,269)
===========
Owens Corning
Unaudited Statement of Cash Receipts & Disbursements
For the Month Ended July 31, 2006
(In Thousands)
Cash, beginning of month
$1,084,657
Receipts:
Customer receipts 333,804
Intercompany sales 7,047
Loans & advances 900
Sale of assets 0
Other receipts 8,031
Intercompany transfers 96,765
Transfers from DIP 241,373
-----------
Total Receipts 687,920
Disbursements:
Net payroll 40,606
Payroll taxes 40
Sales use & other taxes 5,757
Inventory purchases 162,633
Insurance 1,696
Administrative & selling 78,792
Other 107,888
Intercompany transfers 91,306
Transfers to DIP 290,252
Professional Fees 5,979
U.S. Trustee Quarterly Fees 18
Court costs 0
Adjustment 0
-----------
Total Disbursements 784,967
-----------
Net Cash Flow (97,047)
-----------
Cash, end of month $987,610
===========
Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the Company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered,
represents the Official Committee of Asbestos Creditors. James J.
McMonagle serves as the Legal Representative for Future Claimants
and is represented by Edmund M. Emrich, Esq., at Kaye Scholer LLP.
(Owens Corning Bankruptcy News, Issue No. 147; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
VESTA INSURANCE: Posts $340,676 Net Loss in October 2006
--------------------------------------------------------
Vesta Insurance Group, Inc.
Income Statement
Month ending October 31, 2006
Revenue from Total Sales $0
Less:
Cost of Sales 0
------------
Gross Profit 0
Less:
Operating Expenses 111,368
------------
Net Profit Operations (111,368)
Non-Operating Income (Expenses)
Interest Income 4,031
Refunds 53,155
Legal Expense (286,493)
------------
Net Profit (Loss) ($340,676)
============
Vesta Insurance Group, Inc.
Schedule of Cash Receipts and Disbursements
Month ending October 31, 2006
Cash On Hand (Beginning) $5,799,631
Cash Receipts:
Accounts Receivable 0
Cash Sales 0
Loan Proceeds 0
Sale of Property 0
Interest 4,031
Others 53,155
------------
Total Receipts 57,186
Cash Disbursements:
Financing costs, fees, interest 0
Advertising 0
Automobiles/Vehicles (repair and maintenance) 0
Bank Fees 130
Commissions/Contract Labor 0
Insurance Expense 0
Interest Paid 0
Inventory Purchased 0
Legal Fees 286,493
Management Fees 53,253
Trustee Fees 7,500
Postage 0
Rent/Lease Payments on Real Estate 0
Repairs and Maintenance 0
Salaries/Wages (portion paid to J.G. Gaines, Inc.) 44,935
Secured Loan Payments 0
Supplies 5,550
Taxes 0
Unsecured Loan Payments 0
Utilities 0
Others 0
------------
Total Disbursements 397,861
Surplus or Deficit (340,676)
------------
Cash on Hand (End) $5,458,955
============
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. 12; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
VESTA INSURANCE: Gaines Posts $195,947 Net Loss in October 2006
---------------------------------------------------------------
J. Gordon Gaines, Inc.
Income Statement
Month ending October 31, 2006
Revenue from Total Sales $35,222
Less:
Cost of Sales 0
------------
Gross Profit 35,222
Less:
Operating Expenses 259,048
------------
Net Profit Operations (223,826)
Non-Operating Income (Expenses)
Interest Earned 3,931
State Tax Refunds 893
Non-operational income 555
Sale of Property 22,500
------------
Net Profit (Loss) ($195,947)
============
J. Gordon Gaines, Inc.
Schedule of Cash Receipts and Disbursements
Month ending October 31, 2006
Cash On Hand (Beginning) $1,162,993
Cash Receipts:
Accounts Receivable 0
Management Fees 35,222
Loan Proceeds 0
Sale of Property 22,500
Interest Earned 3,931
State Tax Refunds 893
Non-operational Income 555
Funding by Texas Receiver 355,731
Funding by Texas Receiver in Transit 61,288
Intercompany insurance operations 48,824
------------
Total Receipts 528,944
Cash Disbursements:
Financing costs, fees, interest 0
Accounting Fees (payroll fees) 0
Advertising 0
Automobiles/Vehicles (repair and maintenance) 0
Bank Fees 0
Commissions/Contract Labor 0
Insurance Expense 86,308
Interest Paid 0
Storage Cost 0
Information System Cost 0
Inventory Purchased 0
Legal Fees 204,195
Management Fees 41,931
Trustee Fees 10,000
Postage 0
Rent/Lease Payments on Real Estate 0
Operating Costs related to Bankruptcy 2,922
Repairs and Maintenance 0
Salaries/Wages (portion paid to J.G. Gaines, Inc.) 341,621
Secured Loan Payments 0
Supplies 8,208
Travel & Entertainment 0
Taxes 0
Unsecured Loan Payments 0
Utilities 45,250
Others 48,824
------------
Total Disbursements 789,260
Surplus or Deficit (260,316)
------------
Cash on Hand (End) $902,677
============
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. 12; 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, Robert Max Victor M. Quiblat II,
Shimero R. Jainga, Joel Anthony G. Lopez, Melvin C. Tabao, Rizande
B. Delos Santos, Cherry A. Soriano-Baaclo, Ronald C. Sy, 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 ***