/raid1/www/Hosts/bankrupt/TCR_Public/070707.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, July 7, 2007, Vol. 11, No. 159
Headlines
ASARCO LLC: Earns $35.6 Million in Period Ended May 31
DELPHI CORPORATION: Posts $45 Million Net Loss in May 2007
FEDERAL-MOGUL: Posts $3.4 Million Net Loss in May 2007
INTERSTATE BAKERIES: Posts $3.7MM Net Loss in Period Ended May 5
PACIFIC LUMBER: Scotia Development's May 2007 Operating Report
PACIFIC LUMBER: Scopac Posts $4 Million Net Loss in May 2007
SOLUTIA INC: Earns $48 Million in May 2007
*********
ASARCO LLC: Earns $35.6 Million in Period Ended May 31
------------------------------------------------------
ASARCO LLC, et al.
Balance Sheet
As of May 31, 2007
ASSETS
Current Assets:
Cash $546,281,000
Restricted Cash 27,597,000
Accounts receivable, net 160,631,000
Inventory 249,902,000
Prepaid expenses 4,651,000
Deferred income tax assets 0
Other current assets 32,561,000
---------------
Total Current Assets 1,021,623,000
Net property, plant and equipment 459,510,000
Other Assets
Investments in subs 105,662,000
Advances to affiliates 351,000
Prepaid pension & retirement plan 82,675,000
Non-current deferred tax asset 40,951,000
Other 97,788,000
---------------
Total assets $1,808,559,000
===============
LIABILITIES
Postpetition liabilities:
Accounts payable $55,464,000
Accrued liabilities 130,469,000
Debtor-in-possession financing 0
---------------
Total postpetition liabilities 185,933,000
Prepetition liabilities:
Not subject to compromise - credit 658,000
Not subject to compromise - other 84,167,000
Advances from affiliates 24,490,000
Subject to compromise 1,506,813,000
---------------
Total prepetition liabilities 1,616,128,000
---------------
Total liabilities 1,802,060,000
---------------
OWNERS' EQUITY (DEFICIT)
Common stock 508,325,000
Additional paid-in capital 104,578,000
Other comprehensive income (122,848,000)
Retained earnings: filing date (1,111,165,000)
---------------
Total prepetition owners' equity (621,111,000)
Retained earnings: post-filing date 627,610,000
---------------
Total owners' equity (net worth) 6,499,000
Total liabilities and owners' equity $1,808,559,000
===============
ASARCO LLC, et al.
Consolidated Statement of Operations
Month Ending May 31, 2007
Sales $162,492,000
Cost of products and services 102,506,000
---------------
Gross profit 59,986,000
Operating expenses:
Selling and general & admin expenses 3,053,000
Depreciation & amortization 3,005,000
Provision accretion expense of asset
retirement obligation 163,000
---------------
Operating income 53,765,000
Interest expense 63,000
Interest income (3,101,000)
Reorganization expenses 7,025,000
Other miscellaneous (income) expenses (8,448,000)
---------------
Income (loss) before taxes 58,226,000
Income taxes 22,641,000
---------------
Net income (loss) $35,584,000
===============
ASARCO LLC, et al.
Consolidated Cash Receipts & Disbursements
Month Ending May 31, 2007
Receipts $160,640,000
Disbursements:
Inventory material 55,730,000
Operating disbursements 58,199,000
Capital expenditures 10,310,000
---------------
Total disbursements 124,239,000
Operating cash flow 36,401,000
Reorganization disbursements 6,358,000
---------------
Net cash flow 30,043,000
Net payments to secured Lenders 0
---------------
Net change in cash 30,043,000
Beginning cash balance 543,835,000
---------------
Ending cash balances $573,878,000
===============
About ASARCO LLC
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. 49; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
DELPHI CORPORATION: Posts $45 Million Net Loss in May 2007
----------------------------------------------------------
Delphi Corporation, et al.
Unaudited Consolidated Balance Sheet
As of May 31, 2007
(In Millions)
ASSETS
Current assets:
Cash and cash equivalents $33
Restricted cash 109
Accounts receivable, net:
General Motors and affiliates 1,620
Other third parties 1,120
Non-Debtor affiliates 384
Notes receivable from non-Debtor affiliates 359
Inventories, net:
Productive material, work-in-process & supplies 847
Finished goods 276
Other current assets 272
--------
TOTAL CURRENT ASSETS 5,020
Long-term assets:
Property, net 1,942
Investment in affiliates 381
Investments in non-Debtor affiliates 3,572
Goodwill 152
Other intangible assets 31
Other 317
--------
TOTAL LONG-TERM ASSETS 6,395
--------
TOTAL ASSETS $11,415
========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities not subject to compromise:
Debtor-in-possession financing $3,110
Accounts payable 1,305
Accounts payable to non-Debtor affiliates 453
Accrued liabilities 746
--------
TOTAL CURRENT LIABILITIES 5,614
Long-term liabilities not subject to compromise:
Employee benefit plan obligations and other 707
Liabilities subject to compromise 17,681
--------
TOTAL LIABILITIES 24,002
Stockholders' deficit:
Common stock 6
Additional paid-in capital 2,775
Accumulated deficit (12,555)
Accumulated other comprehensive loss (2,761)
Treasury stock, at cost (3.2 million shares) (52)
--------
TOTAL STOCKHOLDERS' DEFICIT (12,587)
--------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $11,415
========
Delphi Corporation, et al.
Unaudited Consolidated Statement of Operations
Month Ended May 31, 2007
(In Millions)
Net sales:
General Motors and affiliates $834
Other customers 579
Non-Debtor affiliates 53
--------
Total net sales 1,466
--------
Operating expenses:
Cost of sales 1,389
Long-lived asset impairment charges -
Depreciation and amortization 49
Selling, general and administrative 96
--------
Total operating expenses 1,534
--------
Operating loss (68)
Interest expense (23)
Loss on extinguishment of debt -
Other (expense) income, net (5)
Reorganization items (9)
Income tax benefit (expense) (1)
Equity income from non-consolidated affiliates 2
Equity income from non-Debtor affiliates 59
--------
NET LOSS ($45)
========
Delphi Corporation, et al.
Unaudited Consolidated Statement of Cash Flows
Month Ended May 31, 2007
(In Millions)
Cash flows from operating activities:
Net loss
($45)
Adjustments to reconcile net loss
to net cash provided by operating activities:
Depreciation and amortization 49
Pension and other postretirement benefit expenses 79
Equity income from unconsolidated affiliates (2)
Equity income from non-Debtor affiliates (59)
Reorganization items 9
Changes in operating assets and liabilities:
Accounts receivable, net (14)
Inventories, net 13
Other assets 16
Accounts payable, accrued and other long-term debt (24)
U.S. employee special attrition program (17)
Pension contributions (1)
Other postretirement benefit payments (11)
Payments for reorganization items (5)
Other (9)
--------
Net cash used in operating activities (21)
Cash flows from investing activities:
Capital expenditures (13)
Proceeds from sale of property 3
--------
Net cash used in investing activities (10)
Cash flows from financing activities:
Net proceeds from DIP facility 40
Net repayments of borrowings under other debt pacts (1)
--------
Net cash used in financing activities 39
--------
Decrease in cash and cash equivalents 8
Cash and cash equivalents at beginning of period 25
--------
Cash and cash equivalents at end of period $33
========
About Delphi Corp.
Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single largest global supplier
of vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than 75
million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000
in total assets and $23,851,000,000 in total debts. The Debtors'
exclusive plan-filing period expires on July 31, 2007.
(Delphi Corporation Bankruptcy News, Issue No. 74; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
FEDERAL-MOGUL: Posts $3.4 Million Net Loss in May 2007
------------------------------------------------------
Federal-Mogul Global, Inc., et al.
Unaudited Balance Sheet
As of May 31, 2007
(In millions)
Assets
Cash and equivalents $66.9
Accounts receivable 654.4
Inventories 408.0
Deferred taxes 192.2
Prepaid expenses and other current assets 87.4
--------
Total current assets 1,408.9
Summary of Unpaid Postpetition Debits (43.0)
Intercompany Loans Receivable (Payable) 1,661.8
--------
Intercompany Balances 1,618.8
Property, plant and equipment 780.8
Goodwill 930.3
Other intangible assets 341.5
Insurance recoverable 867.2
Other non-current assets 520.9
--------
Total Assets $6,438.3
========
Liabilities and Shareholders' Equity
Short-term debt $747.2
Accounts payable 229.8
Accrued compensation 62.8
Restructuring and rationalization reserves 19.3
Current portion of asbestos liability -
Interest payable 4.7
Other accrued liabilities 246.5
--------
Total current liabilities 1,310.3
Long-term debt -
Post-employment benefits 736.0
Other accrued liabilities 546.9
Liabilities subject to compromise 5,492.3
Shareholders' equity:
Preferred stock 1,050.6
Common stock 658.1
Additional paid-in capital 7,988.5
Accumulated deficit (11,443.0)
Accumulated other comprehensive income 129.5
Other -
--------
Total Shareholders' Equity (1,617.1)
--------
Total Liabilities and Shareholders' Equity $6,468.3
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Operations
For the Month Ended May 31, 2007
(In millions)
Net sales $283.5
Cost of products sold 225.5
--------
Gross margin 58.0
Selling, general & administrative expenses (46.7)
Amortization (1.2)
Reorganization items (10.0)
Interest income (expense), net (16.6)
Other income (expense), net 13.3
--------
Earnings before Income Taxes (3.1)
Income Tax (Expense) Benefit (0.3)
--------
Earnings before cumulative effect of change
in accounting principle (3.4)
--------
Net Earnings (loss) ($3.4)
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Cash Flows
For the month ended May 31, 2007
(In millions)
Cash Provided From (Used By) Operating Activities:
Net earning (loss) ($3.4)
Adjustments to reconcile net earnings (loss) to net cash:
Depreciation and amortization 13.0
Adjustment of assets held for sale and
other long-lived assets to fair value -
Asbestos charge -
Summary of unpaid postpetition debits -
Cumulative effect of change in acctg. principle -
Change in post-employment benefits (0.7)
Decrease (increase) in accounts receivable (6.5)
Decrease (increase) in inventories 5.4
Increase (decrease) in accounts payable 1.1
Change in other assets & other liabilities (4.4)
Change in restructuring charge -
Refunds (payments) against asbestos liability -
--------
Net Cash Provided From Operating Activities 4.5
Cash Provided From (Used By) Investing Activities:
Expenditures for property, plant & equipment (5.2)
Proceeds from sale of property, plant & equipment -
Proceeds from sale of businesses -
Business acquisitions, net of cash acquired -
Other -
--------
Net Cash Provided From (Used By) Investing Activities (5.2)
Cash Provided From (Used By) Financing Activities:
Increase (decrease) in debt (1.9)
Sale of accounts receivable under securitization -
Dividends -
Other (0.3)
--------
Net Cash Provided From Financing Activities (2.2)
Increase (Decrease) in Cash and Equivalents (2.9)
Cash and equivalents at beginning of period 69.8
--------
Cash and equivalents at end of period $66.9
========
About Federal-Mogul Corporation
Headquartered in Southfield, Mich., Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is an automotive parts company
with worldwide revenue of some $6 billion. Federal-Mogul also has
operations in Mexico and the Asia Pacific Region, which includes,
Malaysia, Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
their creditors, they listed $10.15 billion in assets and
$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan. On July 28, 2004, the
District Court approved the Disclosure Statement. The estimation
hearing began on June 14, 2005. They then submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007. The confirmation hearing is set for June 8, 2007.
(Federal-Mogul Bankruptcy News, Issue No. 142; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
INTERSTATE BAKERIES: Posts $3.7MM Net Loss in Period Ended May 5
----------------------------------------------------------------
Interstate Bakeries Corporation and Subsidiaries
Unaudited Consolidated Monthly Operating Report
Four Weeks Ended May 5, 2007
REVENUE
Gross Income $234,861,168
Less Cost of Goods Sold
Ingredients, Packaging & Outside Purchasing 58,365,570
Direct & Indirect Labor 41,557,799
Overhead & Production Administration 12,102,889
-------------
Total Cost of Goods Sold 112,026,258
-------------
Gross Profit 122,834,910
-------------
OPERATING EXPENSES
Owner-Draws/Salaries -
Selling & Delivery Employee Salaries 53,955,349
Advertising and Marketing 3,146,920
Insurance (Property, Casualty, & Medical) 12,062,601
Payroll Taxes 4,435,465
Lease and Rent 3,222,834
Telephone and Utilities 1,298,532
Corporate Expense (Including Salaries) 6,088,600
Other Expenses 30,350,129
-------------
Total Operating Expenses 114,560,430
-------------
EBITDA 8,274,480
Restructuring & Reorganization Charges 771,229
Depreciation and Amortization 5,579,056
Abandonment 2,069,958
Other( Income)/Expense 16,302
Gain/Loss Sale of Property -
Interest Expense 3,725,359
-------------
Operating Income (Loss) (3,887,424)
Income Tax Expense (Benefit) (136,060)
-------------
NET Income (Loss) ($3,751,364)
=============
CURRENT ASSETS
Accounts Receivable at end of period $152,013,520
Increase (Dec.) in Accounts Receivable 6,917,097
Inventory at end of period 67,440,588
Increase (Decrease) in Inventory for period 239,582
Cash at end of period 64,796,984
Increase (Decrease) in Cash for period (4,779,367)
Restricted Cash 14,917,142
Increase (Dec.) in Restricted Cash for period 6,088,249
LIABILITIES
Increase (Decrease) in Liabilities
Not Subject to Compromise (5,723,048)
Increase (Decrease) in Liabilities
Subject to Compromise 588,139
Taxes payable:
Federal Payroll Taxes 5,209,389
State/Local Payroll Taxes 1,413,573
State Sales Taxes 802,008
Real Estate and Personal Property Taxes 8,576,804
Other 4,324,669
-------------
Total Taxes Payable $20,326,443
=============
About Interstate Bakeries
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), Baker's Inn(R), Merita(R), Hostess(R) and
Drake's(R). Currently, IBC employs more than 25,000 people and
operates 45 bakeries, as well as approximately 800 distribution
centers and approximately 800 bakery outlets throughout the
country.
The company and seven of its debtor-affiliates filed for
chapter 11 protection on Sept. 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 August 15, 2014)
in total debts. The Debtors' exclusive period to file a chapter
11 plan expires on Oct. 5, 2007. (Interstate Bakeries
Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
PACIFIC LUMBER: Scotia Development's May 2007 Operating Report
--------------------------------------------------------------
Scotia Development LLC, et al.
Consolidated Balance Sheet
As of May 31, 2007
ASSETS
Current Assets
Cash $8,842,102
Accounts receivable, net 9,910,050
Inventory: lower cost or market 20,918,999
Prepaid expenses 4,824,851
Prepaid Restructuring 100,000
Investments -
Other 254,542
------------
Total Current Assets 44,850,545
Property, Plant & Equipment 212,224,161
Less: Accumulated Depreciation (135,192,135)
------------
Net book value of property & plant 77,032,026
Other Assets
Notes Receivable 638,379
Deferred Financing Costs 5,170,594
Long-term Investments 2,570,206
Restricted Cash 2,513,938
Deferred Tax Assets 13,652,208
------------
TOTAL ASSETS $146,427,896
============
LIABILITIES & OWNERS EQUITY
Postpetition Liabilities
Trade accounts payable $1,266,419
Tax payable
Federal payroll taxes 7,878
State payroll taxes 7,957
Ad valorem taxes (96,942)
Other taxes 20,662
------------
Total taxes payable (60,445)
Secured debt postpetition
Accrued interest payable 5,445,050
Accrued professional fees 1,873,209
Other accured liabilities
Trade Accruals 1,131,388
Compensation and Benefits 1,199,207
Other Accrued 434,154
Due to Affiliate/Parent 880,528
------------
Total Postpetition Liabilities [sic] 11,288,983
Prepetition Liabilities
Notes payable - Secured 114,048,529
Priority debt 6,581,454
Federal income tax (17,006)
FICA/ Withholding -
Unsecured debt 2,944,230
Other 33,835,206
Due to Affiliate/Parent 41,661,505
------------
Total Prepetition Liabilities 199,053,918
------------
Total Liabilities [sic] 210,342,900
Owner's Equity (Deficit)
Equity in Affiliates 499,553,227
Common Stock 1,001
Additional Paid-in Capital 275,546,288
Retained Earnings: Filing Date (793,842,484)
Retained Earnings: Post Filing Date (45,173,037)
------------
Total Owner's Equity (63,915,005)
------------
TOTAL LIABILITIES & OWNERS EQUITY [sic] $146,427,895
============
Scotia Development LLC, et al.
Statement of Income
For the Period Ended May 31, 2007
Revenues $12,459,978
Total cost of revenues 14,993,552
------------
Gross Profit (2,533,575)
Operating Expenses
Selling & Marketing 97,084
General & Administrative 490,720
Insiders Compensation 117,001
Professional Fees -
Idle Facilities 70,440
Environmental 40,425
------------
Total Operating Expenses 815,669
------------
Income before interest, depreciation, tax (3,349,243)
Interest Expense 1,269,346
Depreciation 866,698
Other (Income) Expenses (47,979)
Restructuring
Professional Fees 581,543
Other 594,516
Amortization of Deferred Financing Costs 225,900
Equity Loss (Earnings) in Subsidiary (4,086,360)
Total Interest, Depreciation & Other Items 7,576,383
------------
Net Income Before Taxes (10,925,626)
Federal Income Tax 800
------------
Net Income (Loss) ($10,926,426)
============
Scotia Development LLC, et al.
Cash Receipts and Disbursements
For the Month Ended May 31, 2007
Receipts
Cash Sales $76,491
Collection of Accounts Receivable 10,132,966
Loans & Advances 3,040
Sale of Assets
Other 281,436
------------
Total Receipts 10,493,932
Disbursements
Net payroll 1,135,500
Payroll taxes paid 402,395
Sales, use & other taxes paid 7,191
Secured/rentals/leases 85,236
Utilities & telephone 81,932
Insurance 964,076
Cost of goods sold 2,866,851
Vehicle expenses 1,932
Travel & entertainment 22,074
Repairs, maintenance & supplies 895,812
Administrative & selling 475,603
Other 2,939,295
------------
Total Disbursements from operations 9,877,897
Professional fees 806,915
U.S. Trustee fees -
Other reorganization expenses -
------------
Total Disbursements 10,684,811
------------
Net Cash Flow (190,879)
------------
Cash, at the beginning of the month 9,032,981
------------
Cash, at the end of the month $8,842,102
============
About Pacific Lumber
Headquartered in Oakland, Calif., The Pacific Lumber Company --
http://www.palco.com/-- and its subsidiaries operate in several
principal areas of the forest products industry, including the
growing and harvesting of redwood and Douglas-fir timber, the
milling of logs into lumber and the manufacture of lumber into a
variety of finished products.
Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.
Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.
Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032). Jeffrey L. Schaffer, Esq.,
William J. Lafferty, Esq., and Gary M. Kaplan, Esq., at Howard
Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation
is Pacific Lumber's lead counsel. Nathaniel Peter Holzer, Esq.,
Harlin C. Womble, Jr. , Esq., and Shelby A. Jordan, Esq., at
Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co-
counsel. Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at
Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead
counsel. John F. Higgins, Esq., and James Matthew Vaughn, Esq.,
at Porter & Hedges LLP, is Scotia Pacific's co-counsel.
When Pacific Lumber filed for protection from its creditors, it
estimated assets and debts of more than $100 million. Scotia
Pacific listed total assets of $932,000,000 and total debts of
$765,978,335. The Debtors' exclusive period to file a chapter 11
plan expires on Sept. 18, 2007, as extended. The Debtors'
exclusive period to solicit acceptances of that plan expires on
Nov. 19, 2007. (Scotia/Pacific Lumber Bankruptcy News, Issue
No. 20, http://bankrupt.com/newsstand/or 215/945-7000).
PACIFIC LUMBER: Scopac Posts $4 Million Net Loss in May 2007
------------------------------------------------------------
Scotia Pacific Company LLC
Consolidated Balance Sheet
As of May 31, 2007
ASSETS
Current Assets
Cash $50,986,768
Accounts receivable, net 5,146,573
Inventory: lower cost or market -
Prepaid expenses 5,765,672
Prepaid Restructuring 564,671
Investments -
Other 316,813
------------
Total Current Assets 62,780,497
Property, Plant & Equipment 596,785,853
Less: Accumulated Depreciation (355,268,469)
------------
Net book value of property & plant 241,517,383
Other Assets
Tax Deposits -
Investments in Subsidiaries -
Electric Deposit -
Capitalized Expenses 11,702,126
------------
TOTAL ASSETS $316,000,006
============
LIABILITIES & OWNERS EQUITY
Postpetition Liabilities
Trade accounts payable $173,292
Tax payable
Federal payroll taxes 242
State payroll taxes 1,878
Ad valorem taxes 35,000
Other taxes 191,575
------------
Total taxes payable 228,696
Secured debt postpetition -
Accrued interest payable 20,018,563
Accrued professional fees 5,142,464
Other accured liabilities
Unsecured Debt 885,682
Payroll 273,957
Other 172,580
------------
Total Postpetition Liabilities 26,895,234
Prepetition Liabilities
Notes payable - Secured 767,262,853
Priority debt 263,100
Federal income tax -
FICA/ Withholding -
Unsecured debt 3,702,350
Other 235,944
Due to Affiliate/Parent -
------------
Total Prepetition Liabilities 771,464,246
------------
Total Liabilities 798,359,480
Owner's Equity (Deficit)
Equity in Affiliates
Common Stock 20,384,905
Additional Paid-in Capital 179,838,186
Retained Earnings: Filing Date (662,058,832)
Retained Earnings: Post Filing Date (20,523,732)
------------
Total Owner's Equity (482,359,474)
------------
TOTAL LIABILITIES & OWNERS EQUITY $316,000,006
============
Scotia Pacific Company LLC
Statement of Income
For the Period Ended May 31, 2007
Revenues $3,303,082
Total cost of revenues 770,297
------------
Gross Profit 2,532,784
Operating Expenses
Selling & Marketing -
General & Administrative 263,017
Insiders Compensation -
Professional Fees -
Idle Facilities -
Environmental -
------------
Total Operating Expenses 263,017
------------
Income before interest, depreciation, tax 2,269,768
Interest Expense 5,065,813
Depreciation 642,725
Other (Income) Expenses (127,591)
Restructuring
Professional Fees 753,000
Other 22,182
Amortization of Deferred Financing Costs -
Equity Loss (Earnings) in Subsidiary -
Total Interest, Depreciation & Other Items 6,356,128
------------
Net Income Before Taxes (4,086,360)
Federal Income Tax 0
------------
Net Income (Loss) ($4,086,360)
============
Scotia Pacific Company LLC
Cash Receipts and Disbursements
For the Month Ended May 31, 2007
Receipts
Cash Sales $0
Collection of Accounts Receivable 0
Loans & Advances 0
Sale of Assets 0
Other
Interest Income 210,693
Log Sales 2,894,486
Other 500
------------
Total Receipts 3,105,679
Disbursements
Net payroll 193,008
Payroll txes paid 84,211
Sales, use & other taxes paid
Secured/rentals/leases 24,941
Utilities & telephone 295
Insurance 26,430
Cost of goods sold
Vehicle expenses 1,436
Travel & entertainment 6,929
Repairs, maintenance & supplies 4,223
Administrative & selling 358,535
Other
------------
Total Disbursements from operations 700,008
Professional fees 857,098
U.S. Trustee fees
Interest 246,382
Other reorganization expenses
------------
Total Disbursements 1,803,488
------------
Net Cash Flow 1,302,191
------------
Cash, at the beginning of the month 49,684,578
------------
Cash, at the end of the month $50,986,768
============
About Pacific Lumber
Headquartered in Oakland, Calif., The Pacific Lumber Company --
http://www.palco.com/-- and its subsidiaries operate in several
principal areas of the forest products industry, including the
growing and harvesting of redwood and Douglas-fir timber, the
milling of logs into lumber and the manufacture of lumber into a
variety of finished products.
Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.
Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.
Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032). Jeffrey L. Schaffer, Esq.,
William J. Lafferty, Esq., and Gary M. Kaplan, Esq., at Howard
Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation
is Pacific Lumber's lead counsel. Nathaniel Peter Holzer, Esq.,
Harlin C. Womble, Jr. , Esq., and Shelby A. Jordan, Esq., at
Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co-
counsel. Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at
Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead
counsel. John F. Higgins, Esq., and James Matthew Vaughn, Esq.,
at Porter & Hedges LLP, is Scotia Pacific's co-counsel.
When Pacific Lumber filed for protection from its creditors, it
estimated assets and debts of more than $100 million. Scotia
Pacific listed total assets of $932,000,000 and total debts of
$765,978,335. The Debtors' exclusive period to file a chapter 11
plan expires on Sept. 18, 2007, as extended. The Debtors'
exclusive period to solicit acceptances of that plan expires on
Nov. 19, 2007. (Scotia/Pacific Lumber Bankruptcy News, Issue
No. 20, http://bankrupt.com/newsstand/or 215/945-7000).
SOLUTIA INC: Earns $48 Million in May 2007
------------------------------------------
Solutia Chapter 11 Debtors
Unaudited Statement of Consolidated
Financial Position
As of May 31, 2007
ASSETS
Cash $59,000,000
Trade Receivables, net 203,000,000
Account Receivables-Unconsolidated Subsidiaries 78,000,000
Inventories 185,000,000
Other Current Assets 147,000,000
Assets of Discontinued Operations 9,000,000
--------------
Total Current Assets 681,000,000
Property, Plant and Equipment, net 655,000,000
Investments in Subsidiaries and Affiliates 687,000,000
Intangible Assets, net 100,000,000
Other Assets 58,000,000
--------------
Total Assets $2,181,000,000
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts Payable $186,000,000
Short Term Debt 975,000,000
Other Current Liabilities 157,000,000
Liabilities of Discontinued Operations 31,000,000
--------------
Total Current Liabilities 1,349,000,000
Long-Term Debt 0
Other Long-Term Liabilities 191,000,000
--------------
Total Liabilities not Subject to Compromise 1,540,000,000
Liabilities Subject to Compromise 1,896,000,000
Shareholders' Deficit (1,255,000,000)
--------------
Total Liabilities & Shareholders' Deficit $2,181,000,000
==============
Solutia Chapter 11 Debtors
Unaudited Consolidated Statement of Operations
For the Month Ended May 31, 2007
Total Net Sales $234,000,000
Total Cost Of Goods Sold 218,000,000
--------------
Gross Profit 16,000,000
Total MAT Expense 18,000,000
--------------
Operating Income (Loss) (2,000,000)
Equity Earnings from Affiliates 0
Interest Expense, net (9,000,000)
Other Income, net 34,000,000
Reorganization Items:
Professional fees (5,000,000)
Employee severance and retention costs 0
Other 1,000,000
--------------
(4,000,000)
--------------
Income from continuing operations before taxes 19,000,000
Income tax expense (benefit) 0
Income from discontinued operations 29,000,000
--------------
Net Income $48,000,000
==============
About Solutia Inc.
Headquartered in St. Louis, Mo., Solutia Inc. (OTCBB:SOLUQ) --
http://www.solutia.com/-- and its subsidiaries, engage in the
manufacture and sale of chemical-based materials, which are used
in consumer and industrial applications worldwide. The company
and 15 debtor-affiliates filed for chapter 11 protection on Dec.
17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the
Debtors filed for protection from their creditors, they listed
$2,854,000,000 in assets and $3,223,000,000 in debts.
Solutia is represented by Allen E. Grimes, III, Esq., at
Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson,
Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims
and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff,
Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer &
Feld LLP represent the Official Committee of Unsecured Creditors,
and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital
provides the Creditors' Committee with financial advice.
The Court is set to consider approval of the Disclosure
Statement describing Solutia's First Amended Reorganization
Plan on July 10, 2007. The Debtors' exclusive period to file
a plan expires on July 30, 2007. (Solutia Bankruptcy News,
Issue No. 91; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
*********
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*********
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,
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USA. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy,
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Copyright 2007. All rights reserved. ISSN: 1520-9474.
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