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 ***