/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/070324.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, March 24, 2007, Vol. 11, No. 71 Headlines CATHOLIC CHURCH: Spokane Amends Schedules of Assets and Debts CITATION CORP: Files Schedules of Assets and Liabilities COLLINS & AIKMAN: Earns $5.46 Million in Period Ended Feb. 24 FISCHER IMAGING: Posts $100,960 Net Loss in Period Ended Feb. 28 HANCOCK FABRICS: Shows Balance Sheet as of January 28, 2006 MORTGAGE LENDERS: Files Schedules of Assets and Liabilities ONE IP: Posts $200,457 Net Loss in Period Ended Dec. 31 PEOPLE'S CHOICE: Shows Unaudited Balance Sheet as of Mar. 31, 2006 VESTA INSURANCE: Gaines Files February 2007 Operating Report WERNER LADDER: PA Posts $9.9 Mil. Net Loss in February 2007 ********* CATHOLIC CHURCH: Spokane Amends Schedules of Assets and Debts ------------------------------------------------------------- Michael J. Paukert, Esq., at Paine Hamblen LLP, in Spokane, Wash., notifies the U.S. Bankruptcy Court for the Eastern District of Washington that the Diocese of Spokane has: (a) amended its Schedules A, E, F and G, which were filed by the Diocese on Dec. 6, 2004; and (b) further amended its Schedule F that was previously amended on Jan. 14, 2005. Mr. Paukert notes that Schedule A was amended to add previously omitted parcel numbers and to delete Rockwood Lane Units which should be listed on Schedule G. Schedule E was amended to delete terminated employees. Schedule F, on the other hand was further amended to set forth that (i) the claims of all terminated employees were paid at the date of termination of employment, (ii) the claims for counseling services were paid pursuant to a May 10, 2005 order issued by the court granting a joint request filed by the Diocese, the Tort Litigants Committee and the Tort Claimants Committee authorizing the Diocese to reimburse certain prepetition counseling bills, and (iii) the claims that were paid but inadvertently originally scheduled. The amended Schedule G adds the Rockwood Lane Units incorrectly listed on Schedule A. The Roman Catholic Church of the Diocese of Spokane filed for chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on Dec. 6, 2004. Michael J. Paukert, Esq., at Paine, Hamblen, Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $11,162,938 in total assets and $81,364,055 in total debts. The Diocese of Spokane, the Tort Claimants Committee, the Future Claims Representative, and the Executive Committee of the Association of Parishes delivered an Amended Plan of Reorganization, and a Disclosure Statement describing that Plan to the Court on Feb. 1, 2007. The Honorable Patricia C. Williams approved the disclosure statement on March 8, 2007. (Catholic Church Bankruptcy News, Issue No. 85; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CITATION CORP: Files Schedules of Assets and Liabilities -------------------------------------------------------- A. Real Property Foundry, Pattern Shop and Core Room Bessemer, AL $894,720 Foundry and Core room Selma, AL 259,714 Foundry (Closed) Centreville, AL 180,000 Foundry Bay Minette, AL 1,042,880 Machining Facility Bay Minette, AL 921,757 Manufacturing Menomonee Falls, WI W140 N5516 Lilly Road 2,097,456 W139 N5470 Oak Lane, 1,715,718 Oconomowoc, WI 3,407,306 Grand Rapids, MI 1,945,714 Lowell, MI 1,310,529 Brewton, AL 1,042,694 Biscoe, NC 1,484,871 Warehouse Menomonee Falls, WI 543,942 Main Plant Marion, AL 1,037,554 Columbiana, AL 1,056,626 Land/Building Held For Sale Lake Zurich, IL 1,130,000 Foam Warehouse Columbiana, AL 336,567 B. Personal Property B.1 Cash on hand 7,895 B.2 Bank accounts 1,144,383 B.3 Security Deposits Lockton Loss Fund deposit 580,946 Textron deposit 344,505 Millenium 270,000 CH Robinson 240,000 Porter Warner 200,000 Cigna 181,000 Alagasco 146,125 Farnam Street 105,830 TETRA 103,125 Capstone 100,000 Others 230,901 B.4 Household goods 0 B.5 Book, art work & collectibles 0 B.6 Wearing apparel 0 B.7 Furs and jewelry 0 B.8 Firearms and sporting goods 0 B.9 Interests in Insurance Policies B.10 Annuities 0 B.11 Interests in education IRA 0 B.12 Interests in retirement plans 0 B.13 Stock and Interests 18,952 B.14 Interests in joint ventures 0 B.15 Government & corporate bonds 0 B.16 Accounts receivable Trade/Other A/R Owed To Biscoe 9,948,613 A/R Owed To Menomonee Falls 7,038,396 A/R Owed To Bessemer 5,563,191 A/R Owed To Columbiana 5,300,351 A/R Owed To Brewton 4,987,261 A/R Owed To Grand Rapids 4,147,781 A/R Owed To Marion 2,009,057 A/R Owed To Bay Minette 819,884 A/R Owed To Corporate 370,087 A/R Owed To Novi 26,768 Intercompany Receivable Owed from Citation Foundry 88,418 B.17 Alimony 0 B.18 Other liquidated debts owed 0 B.19 Equitable or future interests 0 B.20 Contingent & contingent interests 0 B.21 Other contingent & unliquidated claims Unknown B.22 Patents, copyrights & trademarks 0 B.23 Licenses & franchises 0 B.24 Other intangibles 0 B.25 Automobiles 22,340 B.26 Boats 0 B.27 Aircraft 0 B.28 Office equipment and supplies 937,743 B.29 Machinery, furniture and fixtures Plant equipment valuation account (fresh start) 14,898,071 Brewton 11,034,774 Biscoe 10,854,171 Bessemer 9,603,004 Men Falls 8,106,399 Marion 6,518,195 Columbiana 6,298,976 Grand Rapids 5,770,535 Bay Minette 1,030,332 B.30 Inventory Finished Goods-Biscoe 5,738,292 Work in Process-Menomonee Falls 1,935,171 Finished Goods-Bessemer 1,514,217 Finished Goods-Columbiana 1,497,274 Raw Materials-Menomonee Falls 1,143,754 Work in Process-Grand Rapids 653,133 Finished Goods-Grand Rapids 551,423 Raw Materials-Grand Rapids 533,414 Raw Materials-Columbiana 451,418 Raw Materials-Marion 329,476 Supplies Inventory-Biscoe 319,107 Finished Goods-Brewton 286,166 Raw Materials-Brewton 271,622 Consolidated Inventory Absorption Adjus 267,000 Finished Goods-Menomonee Falls 264,513 Work in Process-Brewton 239,215 Finished Goods-Marion 195,638 Raw Materials-Bessemer 193,486 Raw Materials-Biscoe 151,431 Supplies Inventory-Brewton 145,668 Raw Materials-Bay Minette 135,861 Supplies Inventory-Columbiana 117,866 Supplies Inventory-Marion 101,360 Work in Process-Marion 87,658 Finished Goods-Bay Minette 50,488 B.31 Animals 0 B.32 Crops 0 B.33 Farming equipment 0 B.34 Farm supplies 0 B.35 Other personal property Country Club Memberships-Birmingham 72,000 Misc Prepaids Bessemer 3,462 Birmingham 424,054 Biscoe 250,416 Brewton 3,733 Columbiana 13,622 Grand Rapids 1,610 Lake Zurich 29,358 Marion 12,180 Menomonee Falls 2,000 Novi 650,002 Prepaid Insurance Birmingham (Corporate) 1,351,333 Biscoe 2,588 Columbiana 2,837 Grand Rapids 7,762 Novi 1,463 Prepaid Taxes 2,953 Unamortized Loan Closing Costs-Birmingh 979,863 Unbilled Patterns/Dies Bay Minette 353,166 Grand Rapids 235,055 Marion 302,675 Columbiana (184,288) Value of customer relationships and goodwill Grand Rapids 468,736 Bessemer 4,154,174 Biscoe 9,358,029 Goodwill valuation adjustment (fresh start) (18,326,592) Intangibles valuation adjustment (fresh start) 439,151 TOTAL SCHEDULED ASSETS $157,242,049 ======================================================= C. Property Claimed as Exempt Not applicable D. Creditors Holding Secured Claims JPMorgan Chase & Co. Term Debt $190,799,761 Revolver 38,199,508 Total Capital Leases 350,930 E. Creditors Holding Unsecured Priority Claims Taxes Unknown F. Creditors Holding Unsecured Claims 23,920,720 Subordinated Note (face value plus accrued interest @ 02/04/07) 10,402,740 Accounts payable 13,517,981 TOTAL SCHEDULED LIABILITIES $253,270,918 ======================================================= Headquartered in Birmingham, Alabama, Citation Corporation -- http://www.citation.net/-- designs, develops and manufactures cast, forged and machined components for the capital and durable goods industries, including the automotive and industrial markets. Citation uses aluminum, steel, gray iron, and ductile iron as the raw materials in its various manufacturing processes. The Debtor and its debtor-affiliates previously filed for protection on Sept. 18, 2004 (Bankr. N.D. Ala. Case No. 04-08130). Michael Leo Hall, Esq., and Rita H. Dixon, Esq., at Burr & Forman LLP, represented the Debtors in their first bankruptcy. Judge Tamara O. Mitchell confirmed the company's Second Amended Joint Plan of Reorganization on May 18, 2005. The Debtor and 11 debtor-affiliates filed for their second bankruptcy on March 12, 2007 (Bankr. N.D. Ala. Case Nos. 07-01153 to 07-01162). David S. Heller, Esq., at Latham & Watkins LLP, and Michael Leo Hall, Esq., at Burr & Forman LLP, represent the Debtors. At Oct. 2005, Citation's balance sheet showed total assets of $360,243,000 and total debts of $294,702,000. The Debtors exclusive period to file a chapter 11 plan expires on July 10, 2007. (Citation Corp. Bankruptcy News, Issue No. 3, http://bankrupt.com/newsstand/or 215/945-7000). COLLINS & AIKMAN: Earns $5.46 Million in Period Ended Feb. 24 ------------------------------------------------------------- Collins & Aikman Corporation Balance Sheet As of Feb. 24, 2007 ASSETS Cash $130,491,451 Accounts receivable-trade, net 239,117,860 Other non-trade receivables 10,034,530 Inventories, net 73,975,636 Tooling and molding, net-current 33,982,903 Prepaids & other current assets 54,200,422 Deferred tax assets-current 0 --------------- TOTAL CURRENT ASSETS 541,802,803 Investments in subsidiaries 2,479,293,518 Fixed assets, net 251,096,678 Goodwill, net 773,081,951 Deferred tax assets-long term 0 Tooling and molding, net-long term 8,369,592 Other noncurrent assets 29,445,077 Intercompany accounts - net 40,209,144 Prepetition intercompany - net 645,087,259 --------------- TOTAL ASSETS $4,768,386,022 =============== LIABILITIES & EQUITY Notes payable $0 Short term borrowings 0 Advance on receivables 0 Current portion-long term debt 135,413,352 Current portion-capital leases 0 Accounts payable 62,097,145 Accrued interest payable 54,023,800 Accrued & other liabilities 180,214,997 Income taxes payable 3,622,706 --------------- Total current liabilities 435,372,000 Liabilities subject to compromise 2,374,521,122 Deferred income taxes 30,472,400 --------------- Total liabilities 2,840,365,521 Total equity 1,928,020,500 --------------- TOTAL LIABILITIES & EQUITY $4,768,386,022 =============== Collins & Aikman Corporation Income Statement Month Ended February 24, 2007 Net outside sales $125,938,376 I/C Net sales 9,717,758 --------------- Total sales 135,656,135 Cost of Sales 116,650,516 --------------- Gross profit 19,005,619 Selling, general & administrative expenses 8,744,109 --------------- Operating income 10,261,510 Interest expenses, net 7,160,902 Intercompany interest, net (2,618,797) Preferred stock accretion 0 Miscellaneous (income)/expense 0 Corporate allocation adjustment 0 Commission income (144,454) Commission expense 0 Royalty income (284,295) 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 Asset Impairment 0 Foreign transactions - (Gain)/Loss 570,387 Amort. of discount on NPV of liabilities 0 (Gain)/Loss on sale-leaseback transaction 0 --------------- Income from continuing operations before income taxes 5,577,768 Federal income tax 0 State income tax 19,260 Foreign income tax 0 --------------- Income from continuing operations 5,558,508 Discontinued operations 93,727 Gain/Loss on sale of divisions 0 Extraordinary items 0 Integration 0 --------------- NET INCOME (LOSS) $5,464,782 =============== 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. The Debtors' disclosure statement explaining their First Amended Joint Chapter 11 Plan was approved on Jan. 25, 2007. (Collins & Aikman Bankruptcy News, Issue No. 56; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000). FISCHER IMAGING: Posts $100,960 Net Loss in Period Ended Feb. 28 ---------------------------------------------------------------- Fischer Imaging Corp. filed its monthly operating report for February 2007 with the United States Bankruptcy Court for the District of Colorado on March 15, 2007. The Debtor reported a net loss of $100,960 from zero revenue for the month ended Feb. 28, 2007. At Feb. 28, 2007, Fischer Imaging Corp.'s balance sheet showed: Total Current Assets $2,518,819 Total Assets $3,228,129 Total Liabilities $1,893,902 Total Shareholders' Equity $1,334,226 A full-text copy of Fischer Imaging Corp.'s February 2007 Monthly Operating Report is available at no charge at: http://researcharchives.com/t/s?1c03 Fischer Imaging Corporation -- http://www.fischerimaging.com/-- services and manufactures medical imaging systems for the screening and diagnosis of disease. The company began producing general-purpose x-ray imaging systems in 1910 and is the oldest manufacturer of x-ray imaging devices in the United States. The company filed for chapter 11 protection on Aug. 22, 2006 (Bankr. D. Colo. Case No. 06-15611). Douglas W. Jessop, Esq., at Jessop & Company, P.C., represents the Debtor in its restructuring efforts. When it filed for protection from its creditors, it listed $2,235,414 in total assets and $26,104 in total debts. HANCOCK FABRICS: Shows Balance Sheet as of January 28, 2006 ----------------------------------------------------------- Hancock Fabrics, Inc. Consolidated Balance Sheets As of January 28, 2006 ASSETS CURRENT ASSETS Cash and cash equivalents $3,215,000 Receivables, less allowance for doubtful accounts 5,053,000 Inventories 152,893,000 Income taxes refundable 7,116,000 Prepaid expenses 1,840,000 ------------ Total current assets 170,117,000 Property and equipment, at depreciated cost 55,948,000 Deferred tax assets 5,427,000 Goodwill 4,218,000 Other assets 6,263,000 ------------ TOTAL ASSETS $241,973,000 ============ LIABILITIES & SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $37,784,000 Accrued liabilities 20,023,000 Deferred tax liabilities 5,889,000 ------------ Total current liabilities 63,696,000 Long-term debt obligations 51,056,000 Long-term lease financing obligations 4,114,000 Postretirement benefits other than pensions 22,872,000 Pension and SERP liabilities 9,129,000 Other liabilities 10,545,000 ------------ TOTAL LIABILITIES 161,412,000 SHAREHOLDERS' EQUITY Common stock 324,000 Additional paid-in capital 75,223,000 Retained earnings 174,842,000 Treasury stock (153,372,000) Accumulated other comprehensive loss (13,345,000) Deferred compensation on restricted stock incentive plan (3,111,000) ------------ TOTAL SHAREHOLDERS' EQUITY 80,561,000 ------------ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $241,973,000 ============ Headquartered in Baltimore, Mississippi, Hancock Fabrics Inc. -- http://www.hancockfabrics.com/-- is a specialty retailer of a wide selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. Hancock Fabrics is one of the largest fabric retailers in the United States, currently operating approximately 400 retail stores in approximately 40 states. The company currently employs approximately 7,500 people on a full-time and part-time basis. Most of the company's employees work in its retail stores, or in field management to support its retail stores. The company and 6 of its debtor-affiliates filed for chapter 11 bankruptcy protection on March 21, 2007 (Bankr. D. Del. Case Nos. 07-10353, 07-10354, 07-356 through 07-10360). Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, represent the Debtors as Counsel. When the Debtors filed for protection from their creditors, they listed $241,873,900 in total assets and 161,412,000 in total liabilities. The Debtors exclusive period to file a chapter 11 plan expires on July 19, 2007. (Hancock Fabric Bankruptcy News, Issue No. 1, http://bankrupt.com/newsstand/or 215/945-7000). MORTGAGE LENDERS: Files Schedules of Assets and Liabilities ----------------------------------------------------------- A. Real Property $1,394,872 B. Personal Property B.1 Cash on Hand 0 B.2 Bank Accounts 2,762,788 B.3 Security Deposits 473,677 B.4 Household goods 0 B.5 Book, artwork and collectibles 0 B.6 Wearing apparel 0 B.7 Furs and jewelry 0 B.8 Firearms and other equipment 0 B.9 Insurance Policies Undetermined B.10 Annuities 0 B.11 Interests in an education IRA 0 B.12 Interests in pension plans 401(k) Plan Undetermined B.13 Stock and Interests 100% SubChapter S Membership Undetermined B.14 Interests in partnerships or joint ventures 0 B.15 Government and corporate bonds 0 B.16 Accounts Receivable Servicing Advances 520,047 Accrued Interest on Loan Sales 2,221,581 Escrow Advances 4,225,274 B.17 Alimony 0 B.18 Other Liquidated Debts Owing Debtor Loans due from officers: James Pedrick 202,837 James T. Wessier 189,587 B.19 Equitable or future interests 0 B.20 Interests in estate death benefit plan 0 B.21 Other Contingent and Unliquidated Claims Undetermined B.22 Patents, copyrights, and others Undetermined B.23 Licenses, franchises & other intangibles Undetermined B.24 Customer lists or other compilations Undetermined B.25 Vehicles 0 B.26 Boats, motors and accessories 0 B.27 Aircraft and accessories 716,204 B.28 Office Equipment 7,149,287 B.29 Equipment and Supplies for Business 6,036,822 B.30 Inventory Warehoused Loans 420,636,049 Loans Held in Portfolio 13,766,802 REO Properties - B.31 Animals 0 B.32 Crops 0 B.33 Farming equipment and implements 0 B.34 Farm supplies, chemicals, and feed 0 B.35 Other Personal Property Estimated Balances of Prepaid Expenses Prepaid Insurance 220,763 Prepaid Rent 2,260,748 Prepaid Other 2,069,875 Potential Tax Attributes Undetermined Systems Projects in Progress Undetermined TOTAL SCHEDULED ASSETS $464,847,213 ========================================================= C. Property Claimed as Exempt $0 D. Secured Claims Residential Funding Company LLC 443,913,086 E. Unsecured Priority Claims 10,177,724 F. Unsecured Nonpriority Claims 102,368,653 TOTAL SCHEDULED LIABILITIES $556,459,464 ========================================================= Middletown, Conn.-based Mortgage Lenders Network USA Inc. -- http://www.mlnusa.com/-- is a privately held company offering a full range of Alt-A/Non-Conforming and Conforming loan products through its retail and wholesale channels. The company filed for chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No. 07-10146). Pachulski Stang Ziehl Young Jones & Weintraub LLP represents the Debtor. When the Debtor filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. The Debtor's exclusive period to file a chapter 11 plan expires on June 5, 2007. (Mortgage Lenders Bankruptcy News, Issue No. 6; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ONE IP: Posts $200,457 Net Loss in Period Ended Dec. 31 ------------------------------------------------------- One IP Voice Inc. filed its monthly operating report for December 2006 with the United States Bankruptcy Court for the District of Connecticut, Hartford Division, on Feb. 27, 2007. The Debtor reported a net loss of $200,457 from revenue of $369,075, for the month ended Dec. 31, 2006. At Dec. 31, 2006, One IP Voice Inc.'s balance sheet showed: Total Current Assets $2,747,639 Total Assets $9,554,392 Total Liabilities $9,815,234 Total Shareholders' Deficit [($260,842)] A full-text copy of One IP Voice Inc.'s December 2006 Monthly Operating Report is available at no charge at: http://researcharchives.com/t/s?1c01 Headquartered in East Hartford, Connecticut, One IP Voice Inc. (OTCBB: OIVO) -- http://www.oneipvoice.com/-- is the parent company of Farmstead Telephone Group and OIPV Corp. One IP Voice Inc. was formed as a result of a name change that took effect on July 19, 2006. Farmstead is one of the full service enterprise telecommunications providers with a comprehensive nationwide systems, services and parts network in the U.S. OIPV Corp. provides Carrier-Based Hosted Voice over Intelligent Protocol solutions to Small to Medium Businesses nationwide. The company and its debtor-affiliate OIPV Corp. filed for chapter 11 protection on Dec. 13, 2006 (Bankr. D. Conn. Case Nos. 06-21242 and 06-21243). Jon P. Newton, Esq., at Reid & Riege, represents the Debtors as Counsel. When the Debtors filed for protection from their creditors, One IP Voice Inc. listed total assets of $9,452,000 and total debts of $6,692,000; and OIPV Corp. listed total assets of $776,000 and total debts of $5,273,000. The Debtors' exclusive period to file a chapter 11 plan expires on April 12, 2007. PEOPLE'S CHOICE: Shows Unaudited Balance Sheet as of Mar. 31, 2006 ------------------------------------------------------------------ People's Choice Financial Corp. Unaudited Consolidated Balance Sheet As of March 31, 2006 ASSETS Cash and cash equivalents $70,623,000 Restricted cash 86,730,000 Mortgage loans held for sale, net 646,682,000 Mortgage loans held for investment, net 3,719,871,000 Accrued interest receivable 28,864,000 Derivative instruments, net 50,300,000 Fixed assets, net 12,886,000 Deferred income taxes, net 21,575,000 Income taxes receivable 21,258,000 Other assets 52,958,000 -------------- TOTAL ASSETS $4,711,747,000 ============== LIABILITIES & EQUITY Warehouse financing facilities $600,990,000 Mortgage-backed securities, net 3,718,609,000 Other liabilities 49,367,000 -------------- Total liabilities 4,368,966,000 Stockholders' Equity Preferred Stock 0 Common Stock 598,000 Additional paid-in capital 340,792,000 Retained earnings (accumulated deficit) 1,391,000 Deferred compensation 0 -------------- Total stockholders' equity 342,781,000 -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,711,747,000 ============== Headquartered in Irvine, California, People's Choice Financial Corp. -- http://www.pchl.com/-- is a residential mortgage banking company who, through its subsidiaries, originates, sells, securitizes and services primarily single-family, non prime, residential mortgage loans. People's Choice Financial Corp. and its debtor-affiliates, People's Choice Home Loan Inc. and People's Choice Funding Inc.. filed for chapter 11 protection on March 20, 2007 (Bankr. C.D. Cal. Case Nos. 07-10772, 07-10765, 07-10767). J. Rudy Freeman, Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, represents the Debtors as Counsel. When Debtors filed for protection from its creditors, it listed total assets of $4,711,747 and total debts of $4,368,966,000. The Debtors exclusive period to file a chapter 11 plan expires on July 18, 2007. (People's Choice Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). VESTA INSURANCE: Gaines Files February 2007 Operating Report ------------------------------------------------------------ J. Gordon Gaines, Inc. Income Statement Month Ended February 28, 2007 Revenue from Total Sales $39,639 Less: Cost of Sales 0 ------------ Gross Profit 39,639 Less: Operating Expenses 7,563 ------------ Net Profit Operations 32,076 Non-Operating Income (Expenses) Interest Earned 588 State Tax Refunds 0 Non-operational income 0 Sale of Property 0 Stale Dated Checks Written Off 0 Miscellaneous Income 350 ------------ Net Profit (Loss) $33,014 ============ J. Gordon Gaines, Inc. Schedule of Cash Receipts and Disbursements Month Ended February 28, 2007 Cash On Hand (Beginning) $803,563 Cash Receipts: Accounts Receivable 0 Management Fees 39,639 Loan Proceeds 0 Sale of Property 0 Interest Earned 588 State Tax Refunds 0 Non-operational Income 0 Funding by Texas Receiver 237,003 Funding by Texas Receiver in Transit 0 Intercompany insurance operations 0 Stale Dated Checks Written Off 0 Miscellaneous Income 350 ------------ Total Receipts 277,579 Cash Disbursements: Financing costs, fees, interest 0 Accounting Fees (payroll fees) 5,924 Advertising 0 Automobiles/Vehicles (repair and maintenance) 0 Bank Fees 0 Commissions/Contract Labor 0 Insurance Expense 26,241 Interest Paid 0 Storage Cost 0 Information System Cost 20,074 Inventory Purchased 0 Legal Fees 0 Management Fees 0 Trustee Fees 0 Postage 3,228 Rent/Lease Payments on Real Estate 0 Operating Costs related to Bankruptcy 240 Repairs and Maintenance 0 Salaries/Wages (portion paid to J.G. Gaines, Inc.) 76,576 Wages paid not by SDR 0 Secured Loan Payments 0 Supplies 111 Travel & Entertainment 0 Taxes 37,091 Unsecured Loan Payments 0 Utilities 52,641 Others 22,440 ------------ Total Disbursements 244,565 Surplus or Deficit 33,014 ------------ Cash on Hand (End) $836,577 ============ 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 an 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. 18; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). WERNER LADDER: PA Posts $9.9 Mil. Net Loss in February 2007 ----------------------------------------------------------- Werner Holding Co. (PA), Inc., and Subsidiaries Unaudited Consolidated Balance Sheet As of February 28, 2007 ($ in thousands) ASSETS Current Assets: Cash and cash equivalents $2,015 Receivables, net 53,201 Income taxes receivable (payable) 1,425 Inventories, net 64,396 Property, plant and equipment held for sale, at cost less accumulated depreciation 16,590 Prepaid insurance and other 6,333 ------------ Total current assets 143,960 Property, Plant & Equipment, Net 51,468 Other assets: Deferred financing fees, net 8,916 Investment in subsidiaries 0 Other noncurrent assets 6,610 ------------ Total other assets 15,526 ------------ TOTAL ASSETS $210,954 ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $16,985 Accrued liabilities 23,485 Intercompany payable (receivables) 0 First lien revolving credit facility 39,479 Current maturities of long-term debt 260,006 ------------ Total current liabilities 339,955 Long-Term Liabilities: Long-term debt 13,754 Reserve for product liability and workers' compensation claims 11,580 Other long-term obligations 3,970 Liabilities subject to compromise 213,088 ------------ Total Liabilities 582,347 Convertible preferred stock 100,592 Shareholders' Deficit: Common stock 1 Additional paid-in-capital 17,017 Retained earnings (deficit) (475,762) Accumulated other comprehensive income (loss) (13,241) ------------ Total Shareholders Deficit (471,985) ------------ TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $210,954 ============ Werner Holding Co. (PA), Inc., and Subsidiaries Unaudited Consolidated Statement of Operations February 1 to 28, 2007 ($ in thousands) Net sales $24,080 Total cost of sales 19,180 ------------ Gross profit 4,900 Total operating expenses 9,020 Operating income (loss) (4,120) Equity in net income (loss) of subsidiaries 0 Other income (expense), net (69) ------------ Income (loss) before interest, reorganization items and taxes (4,189) Reorganization Items: (Restructuring Process Fees) (2,241) Interest Income 75 ------------ Reorganization Items, Net (2,166) ------------ Interest (loss) before interest and taxes (6,355) Inter-company interest expense 0 Interest expense 3,918 ------------ Income (loss) before income taxes (10,273) Provision (benefit) for income taxes (309) ------------ Net Income (Loss) ($9,964) ============ Werner Holding Co. (PA), Inc., and Subsidiaries Unaudited Consolidated Statement of Cash Flows February 1 to 28, 2007 ($ in thousands) Cash flows provided (used) by operating activities ($10,485) Cash Flows From Investing Activities: Capital expenditures, net (143) ------------ Net cash used in investing activities (143) Cash Flows From Financing Activities: Capital lease payments (175) Net cash provided (used) by financing activities (299) ------------ Net increase (decrease) in cash and equivalents (10,927) Cash and equivalents at January 1, 2007 12,942 ------------ Cash and equivalents at January 31, 2007 $2,015 ============ Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc. aka Werner Ladder Co. -- http://www.wernerladder.com/-- manufactures and distributes ladders, climbing equipment and ladder accessories. The company and three of its affiliates filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del. Case No. 06-10578). The Debtors are represented by the firm of Willkie Farr & Gallagher LLP as lead counsel and the firm of Young, Conaway, Stargatt & Taylor LLP as co-counsel. Rothschild Inc. is the Debtors' financial advisor. The Official Committee of Unsecured Creditors is represented by the firm of Winston & Strawn LLP as lead counsel and the firm of Greenberg Traurig LLP as co-counsel. Jefferies & Company serves as the Creditor Committee's financial advisor. At March 31, 2006, the Debtors reported total assets of $201,042,000 and total debts of $473,447,000. (Werner Ladder Bankruptcy News, Issue No. 24; 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 R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, Cherry A. Soriano-Baaclo, Melvin C. Tabao, Melanie C. Pador, Ludivino Q. Climaco, Jr., Tara Marie A. Martin, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9474. 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