TCR_Public/070331.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 31, 2007, Vol. 11, No. 77

                             Headlines

ADVANCED MARKETING: PGI Files Schedules of Assets and Liabilities
ADVANCED MARKETING: PGW Files Schedules of Assets and Liabilities
ASARCO LLC: Earns $24.83 Million in February 2007
CALPINE CORP: Posts $130.2 Million Net Loss in December 2006
FLYI INC: Posts $647,383 Net Loss in February 2007

FLYI INC: Independence Air Posts $1.5 Mil. Net Loss in Feb. 2007
GRANITE BROADCASTING: Earns $23.44 Million in February 2007
INTERSTATE BAKERIES: Posts $12.8 Mil. Loss in Period Ended Feb. 10

                             *********

ADVANCED MARKETING: PGI Files Schedules of Assets and Liabilities
-----------------------------------------------------------------

A.      Real Property                                        $0

B.      Personal Property                                     0

        TOTAL SCHEDULED ASSETS                               $0
                                                         ======

C.      Property Claimed as Exempt               Not applicable

D.      Creditors Holding Secured Claims
           Wells Fargo Foothill, Inc.               $41,514,348

E.      Creditors Holding Unsecured
        Priority Claims                                       0

F.      Creditors Holding Unsecured Claims                    0

        TOTAL SCHEDULED LIABILITIES                 $41,514,348
                                                   ============

Based in San Diego, California, Advanced Marketing Services, Inc.
-- http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution and publishing services, currently
primarily to the book industry.  The company has operations in the
U.S., Mexico, the United Kingdom and Australia and employs
approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group Incorporated
and Publishers Group West Incorporated filed for chapter 11
protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480
through 06-11482).  Suzzanne S. Uhland, Esq., Austin K. Barron,
Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP,
represent the Debtors as Lead Counsel.  Chun I. Jang, Esq., Mark
D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton
& Finger, P.A., represent the Debtors as Local Counsel.  
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed estimated assets and debts of more
than $100 million.  The Debtors' exclusive period to file a
chapter 11 plan expires on Apr. 28, 2007. (Advanced Marketing
Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ADVANCED MARKETING: PGW Files Schedules of Assets and Liabilities
-----------------------------------------------------------------

A.      Real Property                                        $0

B.      Personal Property                                     0

        TOTAL SCHEDULED ASSETS                               $0
                                                         ======

C.      Property Claimed as Exempt               Not applicable

D.      Creditors Holding Secured Claims
           Wells Fargo Foothill, Inc.               $41,514,348

E.      Creditors Holding Unsecured
        Priority Claims                                       0

F.      Creditors Holding Unsecured Claims                    0

        TOTAL SCHEDULED LIABILITIES                 $41,514,348
                                                   ============

Based in San Diego, California, Advanced Marketing Services, Inc.
-- http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution and publishing services, currently
primarily to the book industry.  The company has operations in the
U.S., Mexico, the United Kingdom and Australia and employs
approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group Incorporated
and Publishers Group West Incorporated filed for chapter 11
protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480
through 06-11482).  Suzzanne S. Uhland, Esq., Austin K. Barron,
Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP,
represent the Debtors as Lead Counsel.  Chun I. Jang, Esq., Mark
D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton
& Finger, P.A., represent the Debtors as Local Counsel.  
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed estimated assets and debts of more
than $100 million.  The Debtors' exclusive period to file a
chapter 11 plan expires on Apr. 28, 2007. (Advanced Marketing
Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ASARCO LLC: Earns $24.83 Million in February 2007
-------------------------------------------------

                       ASARCO LLC, et al.
                          Balance Sheet
                     As of February 28, 2007

ASSETS
    Current Assets:
    Cash                                           $491,989,000
    Restricted Cash                                  27,260,000
    Accounts receivable, net                        138,823,000
    Inventory                                       261,501,000
    Prepaid expenses                                  5,904,000
    Deferred income tax assets                                0
    Other current assets                             25,942,000
                                                ---------------
Total Current Assets                                951,421,000

Net property, plant and equipment                   434,785,000
Other Assets
    Investments in subs                              99,560,000
    Advances to affiliates                              407,000
    Prepaid pension & retirement plan                77,992,000
    Non-current deferred tax asset                   40,951,000
    Other                                           115,641,000
                                                ---------------
Total assets                                     $1,720,759,000
                                                ===============

LIABILITIES
    Postpetition liabilities:
    Accounts payable                                $36,452,000
    Accrued liabilities                              76,874,000
Debtor-in-possession financing                                0
                                                ---------------
Total postpetition liabilities                      112,326,000

Prepetition liabilities:
Not subject to compromise - credit                      727,000
Not subject to compromise - other                    50,851,000
Advances from affiliates                             24,190,000
Subject to compromise                             1,011,028,000
                                                ---------------
Total prepetition liabilities                     1,086,796,000
                                                ---------------
Total liabilities                                $1,199,123,000
                                                ===============

OWNERS' EQUITY (DEFICIT)
Common stock                                        508,325,000
Additional paid-in capital                          104,578,000
Other comprehensive income                         (122,452,000)
Retained earnings: filing date                     (526,240,000)
                                                ---------------
Total prepetition owners' equity                    (35,790,000)
Retained earnings: post-filing date                 557,426,000
                                                ---------------
Total owners' equity (net worth)                    521,636,000

Total liabilities and owners' equity             $1,720,759,000
                                                ===============

                       ASARCO LLC, et al.
              Consolidated Statement of Operations
                 Month Ending February 28, 2007

Sales                                              $103,867,000
Cost of products and services                        70,403,000
                                                 --------------
Gross profit                                         33,464,000

Operating expenses:
Selling and general & admin expenses                  2,414,000
Depreciation & amortization                           2,328,000
Provision accretion expense of asset
retirement obligation                                  163,000
                                                 --------------
Operating income                                     28,559,000    
28,560,000

Interest expense                                         58,000
Interest income                                      (2,482,000)
Reorganization expenses                               2,691,000
Other miscellaneous (income) expenses                (4,890,000)
                                                 --------------
Income (loss) before taxes                           47,816,000    
33,183,000
Income taxes                                          8,347,000
                                                 --------------
Net income (loss)                                   $24,836,000
                                                 ==============

                       ASARCO LLC, et al.
           Consolidated Cash Receipts & Disbursements
                 Month Ending February 28, 2007

Receipts                                           $108,280,000
Disbursements:
Inventory material                                   23,730,000
Operating disbursements                              44,698,000
Capital expenditures                                  1,250,000
                                                 --------------
Total disbursements                                  69,678,000

Operating cash flow                                  38,802,000
Reorganization disbursements                          3,218,000
                                                 --------------
Net cash flow                                        35,584,000
Net payments to secured Lenders                               0
                                                 --------------
Net change in cash                                   35,384,000
Beginning cash balance                              483,865,000
                                                 --------------
Ending cash balances                               $519,249,000
                                                 ==============

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

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

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

ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to
06-20776).

(ASARCO Bankruptcy News, Issue No. 43; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)

Judge Schmidt extended the Debtors' exclusive period to file a
plan of reorganization to April 6, 2007, and their exclusive
period to solicit acceptances of that plan to June 6, 2007.


CALPINE CORP: Posts $130.2 Million Net Loss in December 2006
------------------------------------------------------------

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

                             ASSETS

Current assets:
   Cash and cash equivalents                     $1,077,327,000
   Accounts receivable, net                         735,300,000
   Inventories                                      183,953,000
   Margin deposits and other prepaid expense        358,958,000
   Restricted cash - current                        426,028,000
   Current derivative assets                        151,356,000
   Current assets held for sale                     154,174,000
   Other current assets                              81,233,000
                                                ---------------
Total current assets                              3,168,329,000

   Property, plant and equipment, net            13,603,202,000
   Restricted cash, net of current portion          191,776,000
   Investments                                      129,311,000
   Long-term derivative assets                      352,264,000
   Other assets                                   1,145,383,000
                                                ---------------
Total assets                                    $18,590,265,000
                                                ===============

         LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
   Accounts payable                                $440,365,000
   Accrued interest payable                         406,471,000
   Debt, current portion                          4,568,834,000
   Current derivative liabilities                   225,228,000
   Taxes payable - current                           98,549,000
   Other current liabilities                        318,500,000
                                                ---------------
Total current liabilities                         6,057,947,000

   Debt, net of current portion                   3,351,627,000
   Deferred income taxes, net                       490,105,000
   Long-term derivative liabilities                 475,138,000
   Other long-term liabilities                      344,801,000
                                                ---------------
Total liabilities not subject to compromise      10,719,618,000
Liabilities subject to compromise                14,757,255,000

Minority interests                                  266,292,000
Stockholders' equity (deficit):
   Common stock                                         530,000
   Additional paid-in capital                     3,270,421,000
   Additional paid-in capital, loaned shares        145,000,000
   Additional paid-in capital, returnable shares   (145,000,000)
   Accumulated deficit                          (10,378,067,000)
   Accumulated other comprehensive loss             (45,784,000)
                                                ---------------
Total stockholders' deficit                      (7,152,900,000)
                                                ---------------
Total liabilities and stockholders' deficit     $18,590,265,000
                                                ===============

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

Revenue:
   Electricity and steam revenue                   $422,901,000
   Sales of purchased power and gas
       for hedging and optimization                 102,406,000
   Mark-to-market activities, net                    12,714,000
   Other revenue                                     11,497,000
                                                ---------------
Total revenue                                       549,518,000

Cost of revenue:
   Plant operating expense                           70,962,000
   Purchased power and gas expense
       for hedging and optimization                  87,807,000
   Fuel expense                                     291,338,000
   Depreciation and amortization expense             39,341,000
   Operating plant impairments                            1,000
   Operating lease expense                            4,675,000
   Other cost of revenue                             16,057,000
                                                ---------------
Total cost of revenue                               510,181,000

Gross profit                                         39,337,000
Equipment, development project & other impairments    1,960,000
Sales, general and administrative expense             9,027,000
Other operating expenses                              3,829,000
                                                ---------------
Income (loss) from operations                        24,521,000
Interest expense                                    113,416,000
Interest (income)                                    (4,858,000)
(Income) loss from repurchase of various issuances            -
Minority interest expense                            (3,347,000)
Other (income) expense, net                           3,541,000
                                                ---------------
Income (loss) before reorganization items
   and provisions for income taxes                  (84,231,000)
Reorganization items                                (44,961,000)
                                                ---------------
Income (loss) before provision for income taxes     (39,270,000)
Provision (benefit) for income taxes                 90,981,000
                                                ---------------
Net income (loss)                                 ($130,251,000)
                                                ===============

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

The company previously produced a portion of its fuel consumption
requirements from its own natural gas reserves.  However, in July
2005, the company sold substantially all of its remaining domestic
oil and gas assets to Rosetta Resources Inc.

The company filed for chapter 11 protection on Dec. 20, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-60200).  Richard M. Cieri, Esq.,
Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G.
Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their
restructuring efforts.  Michael S. Stamer, Esq., at Akin Gump
Strauss Hauer & Feld LLP, represents the Official Committee of
Unsecured Creditors.  As of Dec. 19, 2005, the Debtors listed
$26,628,755,663 in total assets and $22,535,577,121 in total
liabilities.  The Debtors' exclusive period to file chapter 11
plan of reorganization expires on June 20, 2007.  (Calpine
Bankruptcy News, Issue No. 45; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).   

Calpine Corp. has until June 20, 2007, to file a plan, and until
Aug. 20, 2007, to solicit acceptances of that plan.


FLYI INC: Posts $647,383 Net Loss in February 2007
--------------------------------------------------

                             FLYi Inc.
                    Consolidated Balance Sheet
                      As of February 28, 2007

ASSETS

Current assets
   Cash                                              $1,238,578
   Short term investments                                     -
   Net accounts receivable                          379,627,803
   IC Notes receivable                                4,252,000
                                                  -------------
   Total Current Assets                             385,118,381
                                                  -------------
Other assets
   Restricted cash                                            -
   Long term investments                                      -
   Property and eqpt., net of depreciation            7,435,000
   Other assets                                      14,055,412
                                                  -------------
   Total Other Assets                                21,490,412
                                                  -------------
   TOTAL ASSETS                                    $406,608,793
                                                  =============

Liabilities not subject to compromise
Liabilities subject to compromise
   Secured debt                                               -
   Priority debt                                              -
   Unsecured debt                                   253,753,071
                                                  -------------
   Total Liabilities                                253,753,071
                                                  -------------
Owner Equity
   Common stock                                       1,088,716
   Additional paid in capital                       158,254,512
   Treasury stock                                   (35,717,477)
   Prepetition retained earnings                     39,858,773
   Postpetition retained earnings                   (10,628,802)
                                                  -------------
   Net Owners' Equity                               152,855,722
                                                  -------------
   TOTAL LIABILITIES AND OWNER'S EQUITY            $406,608,793
                                                  =============

                             FLYi Inc.
                     Statement of Operations
                          February 2007

Revenues                                                     $0
Operating Expense                                           830
                                                  -------------
Net Profit (Loss) before Other Income & Expenses           (830)

Other (income) expenses
   Interest income                                       (4,287)
   Interest expense                                           -
   Other miscellaneous                                        -
                                                  -------------
Net Profit (Loss) before reorganization items             3,457

Reorganization items
   Professional fees                                    650,590
   U.S. Trustee Quarterly Fees                              250
   Income Taxes                                               -
                                                  -------------
Net Profit (Loss)                                     ($647,383)
                                                  =============

Headquartered in Dulles, Virginia, FLYi Inc., aka Atlantic Coast
Airlines Holdings, Inc. -- http://www.flyi.com/-- is the parent
of Independence Air Inc., a small airline based at Washington
Dulles International Airport.  The Debtor and its six affiliates
filed for chapter 11 protection on Nov. 7, 2005 (Bankr. D. Del.
Case Nos. 05-20011 through 05-20017).  Brendan Linehan Shannon,
Esq., M. Blake Cleary, Esq., and Matthew Barry Lunn, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  Brett H. Miller, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., represents the Official
Committee of Unsecured Creditors.  As of Sept. 30, 2005, the
Debtors listed assets totaling $378,500,000 and debts totaling
$455,400,000.

The Debtors' exclusive period to file a chapter 11 expired on
Aug. 15, 2006.  On the same day, the Debtors filed their Joint
Plan of Liquidation.  On Nov. 13, 2006, they filed an Amended Plan
and Disclosure Statement.  The Court approved the Disclosure
Statement on Nov. 17, 2006 and the Clerk of Court entered a
written disclosure statement order on Nov. 21, 2006.  The hearing
to consider confirmation of the Debtors' Plan is set for March 12,
2007.  (FLYi Bankruptcy News, Issue No. 38; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


FLYI INC: Independence Air Posts $1.5 Mil. Net Loss in Feb. 2007
----------------------------------------------------------------

                       Independence Air Inc.
                    Consolidated Balance Sheet
                     As of February 28, 2007

ASSETS

Current assets
   Cash                                             $40,669,412
   Short term investments                           106,440,908
   Restricted cash                                    1,505,892
   Net accounts receivable                          100,749,984
   Net expandable parts and fuel                         37,661
   Prepaid expenses and other current assets          3,792,396
   Deferred tax asset                                        (1)
                                                  -------------
Total current assets                                253,196,252
                                                  -------------
Other assets
   Restricted cash                                    2,957,824
   Net depreciation, property and equipment                   -
   Aircraft deposits                                 11,112,000
   Other assets                                         419,643
                                                  -------------
Total other assets                                   14,489,467
                                                  -------------
   TOTAL ASSETS                                    $267,685,719
                                                  =============
LIABILITIES

Liabilities not subject to compromise
   Accounts payable                                  $3,130,932
   Air traffic liability                                833,822
   Accrued liabilities                                2,210,354
   Amounts due to insiders                               26,668
                                                  -------------
Total Postpetition Liabilities                        6,201,776
                                                  -------------

Liabilities subject to compromise
   Secured debt                                       1,054,465
   Priority debt                                     10,482,516
   Unsecured debt                                   393,022,852
   Other accruals                                    12,233,119
                                                  -------------
Total prepetition liabilities                       416,792,953
                                                  -------------
Total Liabilities                                   422,994,729
                                                  -------------
Owner Equity
   Common stock                                               -
   Treasury stock                                     7,435,000
   Owner's equity account                                     -
   Prepetition retained earnings                   (257,846,546)
   Postpetition retained earnings                    95,102,536
                                                  -------------
Net Owners' Equity                                 (155,309,010)
                                                  -------------
   TOTAL LIABILITIES AND OWNER'S EQUITY            $267,685,719
                                                  =============

                       Independence Air Inc.
                     Statement of Operations
                          February 2007

Revenues
Operating Revenue
   Passenger revenue                                         $0
   Other revenue                                              -
                                                  -------------
Total operating revenues                                      -
                                                  -------------
Operating expenses
Insider compensation                                     13,334
   Wages                                                101,889
   Fringes and benefits                                  69,137
   Aircraft fuel                                              -
   Aircraft maintenance and materials                  (101,594)
   Traffic Commissions                                        -
   CRS Fees                                                   -
   Facilities rents                                     843,026
   Landing fees                                          10,991
   Depreciation and amortization                              -
   Others                                               305,385
   Retirement & restructuring charge                    243,887
                                                  -------------
Total operating expense                               1,486,057
                                                  -------------
Net operating income (loss)                          (1,486,057)
                                                  -------------
Net Profit (Loss) before other income & expenses     (1,486,057)
                                                  -------------
Other (income) expenses
   Interest income                                     (623,207)
   Interest expense                                         675
   Other miscellaneous                                        -
                                                  -------------
   Total other (income) expense                        (622,532)
                                                  -------------
Net Profit (Loss) before reorganization items          (863,524)
                                                  -------------
Reorganization items
   Professional fees                                    650,590
   U.S. Trustee Quarterly Fees                           11,250
   Income Taxes                                          23,706
                                                  -------------
Net Profit (Loss)                                   ($1,549,070)
                                                  =============

Headquartered in Dulles, Virginia, FLYi Inc., aka Atlantic Coast
Airlines Holdings, Inc. -- http://www.flyi.com/-- is the parent
of Independence Air Inc., a small airline based at Washington
Dulles International Airport.  The Debtor and its six affiliates
filed for chapter 11 protection on Nov. 7, 2005 (Bankr. D. Del.
Case Nos. 05-20011 through 05-20017).  Brendan Linehan Shannon,
Esq., M. Blake Cleary, Esq., and Matthew Barry Lunn, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  Brett H. Miller, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., represents the Official
Committee of Unsecured Creditors.  As of Sept. 30, 2005, the
Debtors listed assets totaling $378,500,000 and debts totaling
$455,400,000.

The Debtors' exclusive period to file a chapter 11 expired on
Aug. 15, 2006.  On the same day, the Debtors filed their Joint
Plan of Liquidation.  On Nov. 13, 2006, they filed an Amended Plan
and Disclosure Statement.  The Court approved the Disclosure
Statement on Nov. 17, 2006 and the Clerk of Court entered a
written disclosure statement order on Nov. 21, 2006.  The hearing
to consider confirmation of the Debtors' Plan is set for March 12,
2007.  (FLYi Bankruptcy News, Issue No. 38; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


GRANITE BROADCASTING: Earns $23.44 Million in February 2007
-----------------------------------------------------------

                 Granite Broadcasting Corporation
           Unaudited Condensed Consolidated Balance Sheet
                     As of February 28, 2007

ASSETS

Current assets:
    Cash and cash equivalents                         $30,713,708
    Restricted cash equivalents                         1,000,000
    Accounts receivable, net                           19,598,763
    Current portion of film contract rights             7,422,671
    Other current assets                                9,439,572
                                                     ------------
      Total current assets                             68,174,714

    Property and equipment, net                        54,494,034
    Film contract rights, net of current portion        8,517,013
    Other non current assets                              694,682
    Deferred financing fees, net                        9,352,535
    Intangible assets, net                            299,403,634
                                                     ------------
    Total Assets                                     $440,636,612
                                                     ============

Liabilities and stockholders' deficit

Current Liabilities:
    Accounts Payable                                   $1,293,789
    Other accrued liabilities                           6,990,407
    Current portion of film contract rights payable     7,666,836
    Current portion of long-term debt                   2,615,000
    Other current liabilities                           3,036,427
                                                     ------------
    Total current liabilities not
     subject to compromise                             21,602,459

    Long-term debt, net of current portion             23,615,107
    Film contract rights payable, net                  14,412,408
    Deferred tax liability                             49,006,509
    Other non current liabilities                       3,869,631
                                                     ------------
    Total liabilities not subject
     to compromise                                    112,506,114

    Liabilities subject to compromise                 518,111,886

    Redeemable preferred stock                        199,546,412
    Accrued dividends on redeemable preferred stock   120,003,907

Stockholders' deficit:
    Common stock                                          199,572
    Additional paid-in capital                            492,111
    Accumulated deficit                              (509,347,715)
    Treasury stock, at cost                              (875,675)
                                                     ------------
    Total stockholders' deficit                      (509,531,707)
                                                     ------------
Total liabilities and stockholders' deficit          $440,636,612
                                                     ============

                 Granite Broadcasting Corporation
      Unaudited Condensed Consolidated Statement of Operations
                   From February 1 to 28, 2007

Net revenues                                          $9,106,256

Station operating expenses                             1,075,958
Corporate expense                                        873,226
Non-cash compensation expense                              5,993
Depreciation                                             571,476
Amortization of intangible assets                     (2,869,859)
                                                     ------------
    Operating income                                    9,449,462

Other expenses (income):
    Interest expense                                    1,018,670
    Interest income                                        (8,377)
    Non-cash interest expense                             194,243
    Other                                                 (23,602)
                                                     ------------
Income before reorganization items                     8,268,528

    Reorganization items                              (15,174,493)
                                                     ------------
Net income                                            $23,443,021
                                                     ============

                 Granite Broadcasting Corporation
      Unaudited Condensed Consolidated Statement of Cash Flows
                   From February 1 to 28, 2007

Cash flows from operating activities:
Net income                                           $23,443,021

Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
    Amortization of intangible assets                  (2,869,859)
    Depreciation                                          571,476
    Non-cash compensation expense                           5,993
    Non-cash interest expense                             194,243
    Film amortization                                  (5,489,542)
Change in assets and liabilities:
    Decrease in accounts receivable                       240,097
    Increase in accrued liabilities                       859,344
    Increase in accounts payable                          192,870
    Decrease in film contract rights and other assets   7,908,477
    Decrease in film contract rights payable
     and other liabilities                             (9,808,711)
                                                     ------------
    Net cash provided by operating
     activities                                        15,247,409
                                                     ------------
Cash flows from investing activities:
    Capital expenditures                                 (438,115)
                                                     ------------
    Net cash used in investing activities                (438,115)
                                                     ------------

Cash flows from financing activities
    Payment of Malara Broadcast Group
      senior credit facility                             (156,440)
                                                     ------------
    Net cash used in financing activities                (156,440)

Net increase in cash and cash equivalents              14,652,854
Cash and cash equivalents, beginning of period         17,060,854
                                                     ------------
Cash and cash equivalents, end of period              $31,713,708
                                                     ============

Headquartered in New York, Granite Broadcasting Corp.
-- http://www.granitetv.com/-- owns and operates, or provides       
programming, sales and other services to 23 channels in 11
markets: San Francisco, California; Detroit, Michigan; Buffalo,
New York; Fresno, California; Syracuse, New York; Fort Wayne,
Indiana; Peoria, Illinois; Duluth, Minnesota-Superior, Wisconsin;
Binghamton, New York; Utica, New York and Elmira, New York.  The
company's channel group includes affiliates of NBC, CBS, ABC, CW
and My Network TV, and reaches approximately 6% of all U.S.
television households.

The company and five of its debtor-affiliates filed for chapter 11
protection on Dec. 11, 2006 (Bankr. S.D.N.Y. Case No. 06-12984).  
Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP,
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, it estimated
assets of $443,563,020 and debts of $641,100,000.  (Granite
Broadcasting Corp. Bankruptcy News, Issue No. 16; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/   
or 215/945-7000).

The Debtors' exclusive period to file a plan expires on April 10,
2007.

            
INTERSTATE BAKERIES: Posts $12.8 Mil. Loss in Period Ended Feb. 10
------------------------------------------------------------------

         Interstate Bakeries Corporation and Subsidiaries
          Unaudited Consolidated Monthly Operating Report
                Four Weeks Ended February 10, 2007

REVENUE

Gross Income                                        $220,598,759
Less Cost of Goods Sold
      Ingredients, Packaging & Outside Purchasing      55,755,913
      Direct & Indirect Labor                          40,127,061
      Overhead & Production Administration             12,805,841
                                                    -------------
         Total Cost of Goods Sold                     108,688,815
                                                    -------------
            Gross Profit                              111,909,944
                                                    -------------

OPERATING EXPENSES

Owner - Draws/Salaries                                         -
Selling & Delivery Employee Salaries                  53,944,763
Advertising and Marketing                              1,775,309
Insurance (Property, Casualty, & Medical)             11,551,255
Payroll Taxes                                          4,489,585
Lease and Rent                                         3,093,631
Telephone and Utilities                                1,517,193
Corporate Expense (Including Salaries)                 6,079,500
Other Expenses                                        30,018,329
                                                    -------------
Total Operating Expenses                             112,469,565
                                                    -------------
EBITDA                                                  (559,621)

Restructuring & Reorganization Charges                 3,610,885
Depreciation and Amortization                          5,404,859
Abandonment                                               17,319
Other(Income)/Expense                                      4,376
Gain/Loss Sale of Prop                                         -
Interest Expense                                       3,647,614
                                                    -------------
Operating Income (Loss)                              (13,244,674)
Income Tax Expense (Benefit)                            (410,585)
                                                    -------------
Net Income (Loss)                                   ($12,834,089)
                                                    =============

CURRENT ASSETS
      Accounts Receivable at end of period           143,001,425
      Increase (Decrease) in Accounts Receivable       4,696,363
      Inventory at end of period                      65,189,358
      Increase (Decrease) in Inventory for period        (50,825)
      Cash at end of period                           80,032,842
      Increase (Decrease) in Cash for period          (1,613,448)
      Restricted Cash                                  8,808,781
      Increase (Dec.) in Restricted Cash for period    1,060,545

LIABILITIES
      Increase (Decrease) Liabilities
         Not Subject to Compromise                    13,587,329
      Increase (Decrease) Liabilities
         Subject to Compromise                           352,851
      Taxes payable:
         Federal Payroll Taxes                         9,299,365
         State/Local Payroll Taxes                     6,411,347
         State Sales Taxes                               678,563
         Real Estate and Personal Property Taxes       8,745,804
         Other                                         4,634,932
                                                    ------------
         Total Taxes Payable                         $29,770,011
                                                    ============

Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh baked
bread and sweet goods, under various national brand names,
including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R),
Merita(R) and Drake's(R). The Company employs approximately
32,000 in 54 bakeries, more than 1,000 distribution centers and
1,200 thrift stores throughout the U.S. The Company and seven of
its debtor-affiliates filed for chapter 11 protection on
September 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric
Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed $1,626,425,000 in total assets and
$1,321,713,000 (excluding the $100,000,000 issue of 6.0% senior
subordinated convertible notes due Aug. 15, 2014, on Aug. 12,
2004) in total debts.  The Debtors' exclusive period to file a
chapter 11 plan expires on June 2, 2007.  (Interstate Bakeries
Bankruptcy News, Issue No. 59; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


                             *********

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