TCR_Public/070811.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, August 11, 2007, Vol. 11, No. 189

                             Headlines

DURA AUTOMOTIVE: Posts $13,742,000 Net Loss in May 2007             
DURA AUTOMOTIVE: Posts $12,685,000 Net Loss in June 2007             
MUSICLAND HOLDING: Posts $355,000 Net Loss in June 2007
SOLUTIA INC: Posts $12,000,000 Net Loss in June 2007
TWEETER HOME: Files June 16-July 28, 2007 Initial Operating Report
WERNER LADDER: Posts $9.7 Million Net Loss in June 2007

                             *********

DURA AUTOMOTIVE: Posts $13,742,000 Net Loss in May 2007             
-------------------------------------------------------
                                                               
        Dura Automotive Systems, Inc., and Subsidiaries             
        Condensed Unaudited Consolidated Balance Sheet             
                       As of May 27, 2007                      
                     (Dollars in thousands)                    
                                                               
                             ASSETS                            
                                                               
Current assets:                                                
  Cash and cash equivalents                             $4,379
  Accounts receivable, net                                     
     Trade                                             149,203
     Other                                              15,846
     Non-Debtor subsidiaries                            28,387
  Inventories                                           79,426
  Other current assets                                  35,221
                                                    ----------
     Total current assets                              312,462
                                                               
                                                               
Property, plant and equipment, net                     168,864
Goodwill, net                                          249,927
Notes receivable from Non-Debtors subsidiaries         182,789
Investment in Non-Debtors subsidiaries                 790,647
Other noncurrent assets                                 25,842
                                                    ----------
Total Assets                                        $1,730,531
                                                    ==========
                                                               
       LIABILITIES AND NET LIABILITIES IN LIQUIDATION             
                                                               
Current liabilities:                                           
  Debtors-in-possession financing                     $216,643
  Accounts payable                                      47,815
  Accounts payable to Non-Debtors subsidiaries             749
  Accrued Liabilities                                   92,300
                                                    ----------
     Total current liabilities                         357,507
                                                               
Long-term Liabilities:                                         
  Notes Payable to Non-Debtors subsidiaries              8,739
  Other noncurrent liabilities                          55,662
Liabilities Subject to Compromise                    1,314,365
                                                    ----------
Total Liabilities                                    1,736,273
                                                    ----------
Stockholders' Investment                                (5,742)
                                                    ----------
Total Liabilities and Stockholders' Investment      $1,730,531
                                                    ==========


       Dura Automotive Systems, Inc., and Subsidiaries             
  Condensed Unaudited Consolidated Statement of Operations
            For the Four Weeks Ended May 27, 2007              
                     (Dollars in thousands)                    
                                                               
Total sales                                            $83,148
Cost of sales                                           81,582
                                                    ----------
Gross (loss) profit                                      1,566
                                                               
Selling, general and administrative expenses             6,371
Facility consolidation, asset impairment                       
  and other charges                                        855
Amortization expense                                        34
                                                    ----------
Operating (loss) income                                 (5,694)
                                                               
Interest expense, net                                    3,520
                                                    ----------
Loss before reorganization items and income taxes       (9,214)
                                                               
Reorganization items                                     4,515
                                                    ----------
Income before income taxes                             (13,729)
                                                               
Provision for income taxes                                  13
                                                    ----------
Net Income (Loss)                                     ($13,742)
                                                    ==========


       Dura Automotive Systems, Inc., and Subsidiaries             
  Condensed Unaudited Consolidated Statements of Cash Flows             
            For the Four Weeks Ended May 27, 2007              
                     (Dollars in thousands)                    
                                                               
Operating Activities:                                          
Net Income (loss)                                     ($13,742)
Adjustments to reconcile net loss to net cash used             
  in operations activities:                                    
     Depreciation, amortization & asset impairment       2,659
     Amortization of deferred financing fees               668
      (Gain)/Loss on sale of assets                         64
     Reorganization items                                4,515
Changes in other operating items:                              
  Accounts receivable                                    2,103
  Inventories                                             (845)
  Other current assets                                   4,257
  Noncurrent assets                                        111
  Accounts payable                                      (3,393)
  Accrued liabilities                                   (3,950)
  Noncurrent liabilities                                   505
  Current intercompany transactions                     (1,984)
                                                    ----------
Net cash provided by operating activities               (9,032)
                                                               
Investing Activities:                                          
Purchases of property, plant & equipment                  (838)
Proceeds from sales of assets                                  
                                                    ----------
Net cash (used in) provided by                                 
   investing activities                                   (838)
                                                               
Financing Activities:                                          
  DIP borrowings                                        (2,469)
  Payments on prepetition debt                            (298)
                                                    ----------
Net cash used in financing activities                   (2,767)
                                                               
Net Increase (Decrease) in Cash & Equivalents          (12,637)
                                                               
Cash & Cash Equivalent, Beginning Balance               17,016
                                                    ----------
Cash & Cash Equivalent, Ending Balance                  $4,379
                                                    ==========

Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(OTC: DRRAQ) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies, structural
door modules and exterior trim systems for the global automotive
industry.  The company is also a supplier of similar products to
the recreation vehicle and specialty vehicle industries.  DURA
sells its automotive products to North American, Japanese and
European original equipment manufacturers and other automotive
suppliers.

The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr.
D. Del. Case No. 06-11202).  Richard M. Cieri, Esq., Marc
Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine
Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the
Debtors' bankruptcy proceedings.  Mark D. Collins, Esq., Daniel J.
DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton
& Finger, P.A. Attorneys are the Debtors' co-counsel.  Baker &
McKenzie acts as the Debtors' special counsel.  Togut, Segal &
Segal LLP is the Debtors' conflicts counsel.  Miller Buckfire &
Co., LLC is the Debtors' investment banker.  Glass & Associates
Inc., gives financial advice to the Debtor.  Kurtzman Carson
Consultants LLC handles the notice, claims and balloting for the
Debtors and Brunswick Group LLC acts as their Corporate
Communications Consultants for the Debtors.  As of July 2, 2006,
the Debtor had $1,993,178,000 in total assets and $1,730,758,000
in total liabilities.

The Debtors' exclusive plan-filing period expires on Sept. 30,
2007.  (Dura Automotive Bankruptcy News, Issue No. 24; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
                                                               

DURA AUTOMOTIVE: Posts $12,685,000 Net Loss in June 2007             
--------------------------------------------------------
                                                               
        Dura Automotive Systems, Inc., and Subsidiaries             
        Condensed Unaudited Consolidated Balance Sheet
                       As of July 1, 2007                      
                     (Dollars in thousands)                    
                                                               
                             ASSETS                            
                                                               
Current assets:                                                
  Cash and cash equivalents                             $4,787
  Accounts receivable, net                                     
     Trade                                             147,887
     Other                                              15,011
     Non-Debtor subsidiaries                            32,582
  Inventories                                           79,206
  Other current assets                                  33,756
                                                    ----------
     Total current assets                              313,229
                                                               
                                                               
Property, plant and equipment, net                     167,897
Goodwill, net                                          249,927
Notes receivable from Non-Debtors subsidiaries         183,103
Investment in Non-Debtors subsidiaries                 790,647
Other noncurrent assets                                 25,677
                                                    ----------
Total Assets                                        $1,730,480
                                                    ==========

       LIABILITIES AND NET LIABILITIES IN LIQUIDATION             
                                                               
Current liabilities:                                           
  Debtors-in-possession financing                     $234,246
  Accounts payable                                      47,613
  Accounts payable to Non-Debtors subsidiaries           1,212
  Accrued Liabilities                                   88,717
                                                    ----------
     Total current liabilities                         371,788
                                                               
Long-term Liabilities:                                         
  Notes Payable to Non-Debtors subsidiaries              8,748
  Other noncurrent liabilities                          56,322
Liabilities Subject to Compromise                    1,312,988
                                                    ----------
Total Liabilities                                    1,749,846
                                                               
Stockholders' Investment                               (19,366)
                                                    ----------
Total Liabilities and Stockholders' Investment      $1,730,480
                                                    ==========
                                                               
                                                               
       Dura Automotive Systems, Inc., and Subsidiaries             
  Condensed Unaudited Consolidated Statement of Operations
            For the Five Weeks Ended July 1, 2007              
                     (Dollars in thousands)                    
                                                               
Total sales                                            $98,080
Cost of sales                                           98,503
                                                    ----------
Gross (loss) profit                                       (423)
                                                               
Selling, general and administrative expenses             2,998
Facility consolidation, asset impairment                       
  and other charges                                        182
Amortization expense                                        34
                                                    ----------
Operating (loss) income                                 (3,637)
                                                               
Interest expense, net                                    4,346
                                                    ----------
Loss before reorganization items and income taxes       (7,983)
                                                               
Reorganization items                                     4,446
                                                    ----------
Income before income taxes                             (12,429)
                                                               
Provision for income taxes                                 256
                                                    ----------
Net Income (Loss)                                     ($12,685)
                                                    ==========
                                                               
                                                               
       Dura Automotive Systems, Inc., and Subsidiaries             
  Condensed Unaudited Consolidated Statements of Cash Flows             
            For the Five Weeks Ended July 1, 2007              
                     (Dollars in thousands)                    
                                                               
Operating Activities:                                          
Net Income (loss)                                     ($12,685)
Adjustments to reconcile net loss to net cash used             
  in operations activities:                                    
     Depreciation, amortization & asset impairment      $2,662
     Amortization of deferred financing fees               668
      (Gain)/Loss on sale of assets                       (166)
     Reorganization items                                4,446
Changes in other operating items:                              
  Accounts receivable                                    2,150
  Inventories                                              219
  Other current assets                                     763
  Noncurrent assets                                        166
  Accounts payable                                        (639)
  Accrued liabilities                                   (9,311)
  Noncurrent liabilities                                    17
  Current intercompany transactions                     (3,602)
                                                    ----------
Net cash provided by operating activities              (15,312)
                                                               
Investing Activities:                                          
Purchases of property, plant & equipment                (2,284)
Proceeds from sales of assets                              700
                                                    ----------
Net cash (used in) provided by                                 
   investing activities                                 (1,584)
                                                               
Financing Activities:                                          
  DIP borrowings                                        17,603
  Payments on prepetition debt                            (299)
                                                    ----------
Net cash used in financing activities                   17,304
                                                    ----------
Net Increase (Decrease) in Cash & Equivalents              408
                                                               
Cash & Cash Equivalent, Beginning Balance                4,379
                                                    ----------
Cash & Cash Equivalent, Ending Balance                  $4,787
                                                    ==========

Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(OTC: DRRAQ) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies, structural
door modules and exterior trim systems for the global automotive
industry.  The company is also a supplier of similar products to
the recreation vehicle and specialty vehicle industries.  DURA
sells its automotive products to North American, Japanese and
European original equipment manufacturers and other automotive
suppliers.

The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr.
D. Del. Case No. 06-11202).  Richard M. Cieri, Esq., Marc
Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine
Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the
Debtors' bankruptcy proceedings.  Mark D. Collins, Esq., Daniel J.
DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton
& Finger, P.A. Attorneys are the Debtors' co-counsel.  Baker &
McKenzie acts as the Debtors' special counsel.  Togut, Segal &
Segal LLP is the Debtors' conflicts counsel.  Miller Buckfire &
Co., LLC is the Debtors' investment banker.  Glass & Associates
Inc., gives financial advice to the Debtor.  Kurtzman Carson
Consultants LLC handles the notice, claims and balloting for the
Debtors and Brunswick Group LLC acts as their Corporate
Communications Consultants for the Debtors.  As of July 2, 2006,
the Debtor had $1,993,178,000 in total assets and $1,730,758,000
in total liabilities.

The Debtors' exclusive plan-filing period expires on Sept. 30,
2007.  (Dura Automotive Bankruptcy News, Issue No. 24; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).


MUSICLAND HOLDING: Posts $355,000 Net Loss in June 2007
-------------------------------------------------------

                      Musicland Holding Corp.
                    Consolidated Balance Sheet
                       As of June 30, 2007

ASSETS
Current Assets
   Cash                                          $12,124,000
   Letters of Credit/Other Deposits                  415,000
   Other
      Amounts due from TransWorld                    550,000
      Receivables from Sub-leases                    774,000
      Amounts due from GOB sales                           0
      Miscellaneous CC                                29,000
      Vendors Credit due from services             1,541,000
                                               -------------
      Total                                       15,433,000
                                               =============

Fixed Assets                                               0
Other assets
   Transport Logistic deposit                              0
   Insurance Deposits                              3,977,000
   Utility and Tax Deposits                                0
                                               -------------
   TOTAL ASSETS                                  $19,410,000
                                               =============

Liabilities & Shareholders' deficit
Current liabilities
   Accounts payable
      Due to Transworld                                   $0
      Due to Deluxe                                        0
      Expense accruals                             2,840,000
   Other accrued liabilities
      Logistic Accrual                                     -
      Deferred Income                                      0
      Insurance Reserve                            3,380,000
      Accrued Payroll & Employee Benefits:
         Accrued Vacation                                  0
         Accrued Severance                                 0
         Accrued Employer Payroll Taxes                    0
         Accrued Benefits                                  0
     Sales Tax                                             0         
     5% Admin. Fee on Wachovia L/C                   250,000
     FY06 Tax Return & Employee Benefit  
        Audit Services                                     0
     Payroll/W2 & 1099 System                              0
     Miscellaneous                                    29,000
Gift Card liabilities                                      0
                                               -------------
   Total                                           3,659,000
                                               -------------



DIP financing                                              0
Other LT Liabilities                                       0
Liabilities subject to compromise                315,047,000
Shareholders' deficit                           (302,136,000)
                                               -------------
      TOTAL LIABILITIES &
      SHAREHOLDERS' DEFICIT                      $19,410,000
                                               =============


                      Musicland Holding Corp.
                      Statement of Operations
                  For the Month Ended June 30, 2007

Merchandise revenue                                       -
Non-merchandise revenue                                   -
                                              -------------
   Net sales                                              -

Cost of good sold                                         -
                                              -------------
   Gross Profit                                           -

Store operating expenses
   Payroll                                                -
   Occupancy                                              -
   Other                                            ($2,000)
   Store expenses                                         -
                                              -------------
General & administrative                             (2,000)
                                              -------------
EBITDA (Loss)                                        (2,000)

   Chapter 11 & related charges                    (299,000)
   Sale to Transworld                                     -
   Hilco 65                                               -
   Media Play Wind down                                   -
   Depreciation & Amortization                            -
                                              -------------
      Operating income (Loss)                      (301,000)

   Interest income (expense)                         45,000  
   Other non-operating charges                      (99,000)
                                              -------------
      Earnings before Taxes                        (355,000)
                                              -------------
Income tax                                                -
                                              -------------
      Net earnings (Loss)                         ($355,000)
                                              =============


                     Musicland Holding Corp.
                    Statements of Cash Flow
                For the Month Ended June 30, 2007

Operating activities
   Net earnings (Loss)                            ($355,000)
   Adjustments to reconcile net earnings (loss)
      to net cash provided by (used in)
      operating activities:                               -
         Loss on utility deposits write off

   Changes in operating assets & liabilities:             -
      Inventory                                           -
      Other current assets                                -
      Other Non-current Assets                      750,000
      Accounts payable                                    -
      Other accrued liabilities                           -
      Liabilities subject to compromise                   -
                                               ------------

   Net cash provided by (used in)
      operating activities                          395,000
                                               ------------

Investing activities
   Change in other long term asset/liabilities            -
   Retirement of fixed assets                             -
                                               ------------
      Net cash                                            -

Financing activities
   Distribution to Secured Creditors                      -
                                               ------------
Increase/decrease in cash                           395,000
                                               ------------
   Cash at the beginning of Period               11,729,000
                                               ------------
   Cash at the end of Period                    $12,124,000
                                              =============

Headquartered in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  At March 31, 2007, the Debtors
disclosed $20,121,000 in total assets and $321,546,000 in total
liabilities.

On May 12, 2006, the Debtors filed their Joint Plan of Liquidation
with the Court.  On Sept. 14, 2006, they filed an amended Plan and
a Second Amended Plan on Oct. 13, 2006.  The Court approved the
adequacy of the Amended Disclosure Statement on Oct. 13, 2006.  
The hearing to consider confirmation of the Debtors' Second
Amended Joint Plan of Liquidation began on Aug. 9, 2007.  
(Musicland Bankruptcy News, Issue No. 35; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SOLUTIA INC: Posts $12,000,000 Net Loss in June 2007
----------------------------------------------------

                 Solutia Chapter 11 Debtors
             Unaudited Statement of Consolidated
                    Financial Position
                   As of June 30, 2007

                          ASSETS

Cash                                                $49,000,000
Trade Receivables, net                              217,000,000
Account Receivables-Unconsolidated Subsidiaries      78,000,000
Inventories                                         173,000,000
Other Current Assets                                 84,000,000
Assets of Discontinued Operations                     7,000,000
                                                 --------------
Total Current Assets                                608,000,000

Property, Plant and Equipment, net                  656,000,000
Investments in Subsidiaries and Affiliates          687,000,000
Intangible Assets, net                              100,000,000
Other Assets                                         56,000,000
                                                 --------------
Total Assets                                     $2,107,000,000
                                                 ==============

              LIABILITIES AND SHAREHOLDERS' DEFICIT

Accounts Payable                                   $198,000,000
Short Term Debt                                     922,000,000
Other Current Liabilities                           160,000,000
Liabilities of Discontinued Operations                3,000,000
                                                 --------------
Total Current Liabilities                         1,283,000,000

Long-Term Debt                                                0
Other Long-Term Liabilities                         199,000,000
                                                 --------------
Total Liabilities not Subject to Compromise       1,482,000,000

Liabilities Subject to Compromise                 1,894,000,000

Shareholders' Deficit                            (1,269,000,000)
                                                 --------------
Total Liabilities & Shareholders' Deficit        $2,107,000,000
                                                 ==============


                 Solutia Chapter 11 Debtors
       Unaudited Consolidated Statement of Operations
             For the Month Ended June 30, 2007

Total Net Sales                                    $232,000,000
Total Cost Of Goods Sold                            208,000,000
                                                 --------------
Gross Profit                                         24,000,000

Total MAT Expense                                    18,000,000
                                                 --------------
Operating Income (Loss)                               6,000,000

Equity Earnings from Affiliates                               0
Interest Expense, net                                (9,000,000)
Other Income, net                                     3,000,000

Reorganization Items:
Professional fees                                    (6,000,000)
Employee severance and retention costs               (1,000,000)
Settlements of prepetition claims                     2,000,000
                                                 --------------
                                                     (5,000,000)
                                                 --------------
Income from continuing operations before taxes       (5,000,000)

Income tax expense (benefit)                          3,000,000
                                                 --------------
Loss from Continuing Operations                      (8,000,000)

Income from discontinued operations                  (4,000,000)
                                                 --------------
Net Income (Loss)                                  ($12,000,000)
                                                 ==============

Based in St. Louis, Missouri, 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.

On Feb. 14, 2006, Solutia filed its Reorganization Plan and   
Disclosure Statement.  The Plan was amended twice, on May 16,
2007, and on July 9, 2007.  The hearing to consider approval of
Solutia's Disclosure Statement began on July 10, 2007.  (Solutia
Bankruptcy News, Issue No. 95; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


TWEETER HOME: Files June 16-July 28, 2007 Initial Operating Report
------------------------------------------------------------------
Tweeter Home Entertainment Group Inc. and its debtor-affiliates
filed with the U.S. Bankruptcy Court for the District of Delaware
their initial monthly operating report for the period from June 16
to July 28, 2007.

The Report covers Tweeter's 12-month cash flow projection,
certificates of insurance, evidence of DIP bank accounts and
retainer payments.

Gregory W. Hunt, senior vice president and chief financial
officer of Tweeter, discloses an actual net cash flow of
$2,578,000 in Tweeter bank accounts for the week ending June 23.

Mr. Hunt reports that as of that date, Tweeter collected
$7,728,000, and spent a total of $7,174,000, consisting of:

   -- $6,756,000 in operational expenses;

   -- $175,000 in bankruptcy payments; and

   -- $243,000 in liquidator's fees.

Mr. Hunt adds that Tweeter's net sales for June 23, 2007 was
$5,978,000.

In its cash flow forecast for the week ending July 28, Tweeter
discloses net sales at $5,099,000, with a total collection of
$5,523,000 and total expenditures of $5,046,000.

Mr. Hunt states that Tweeter currently has 15 active insurance
policies.

A full-text copy of Tweeter's Monthly Operating Report is
available at no charge at http://researcharchives.com/t/s?224b

Based in Canton, Mass., Tweeter Home Entertainment Group Inc. --
http://www.tweeter.com/-- retails mid-to high-end audio and       
video consumer electronics products.  Tweeter and seven of its
affiliates filed for chapter 11 Protection on June 11, 2007
(Bankr. D. Del. Case No: 07-10787 through 07-10796).  Gregg M.
Galardi, Esq. and Mark L. Desgrosseilliers, Esq. at Skadden, Arps,
Slate, Meagher & Flom, L.L.P. represent the Debtors in their
restructuring efforts.  As of Dec. 21, 2006, Tweeter had total
assets of $258,573,353 and total debts of $190,417,285.  

The Debtors' exclusive period to file a plan expires on Oct. 9,
2007.  Tweeter Bankruptcy News, Issue No. 8, Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).


WERNER LADDER: Posts $9.7 Million Net Loss in June 2007
-------------------------------------------------------
Werner Holding Co. (PA) Inc., aka Werner Ladder Co., and its
debtor-affiliates delivered to the U.S. Bankruptcy Court for the
District of Delaware their operating report for the period May 1
to June 8, 2007.

Larry V. Friend, former vice president, chief financial officer
and treasurer of the Debtors, discloses that the unaudited
financial statements in the Debtors' current report are for the
period ended June 8 -- the date that the Debtors' Court-approved
Asset Sale was completed.

         Werner Holding Co. (PA), Inc., and Subsidiaries
              Unaudited Consolidated Balance Sheet
                      As of June 8, 2007
                       ($ in thousands)

ASSETS
Current Assets:
Cash and cash equivalents                                $3,687
Receivables, net                                         62,617
Inventories, net
60,496              
                       
Property, plant and equipment held for sale,     
   at cost less accumulated depreciation                 16,590
Prepaid insurance and other
6,459              
                             
                                                   ------------
Total current assets
149,849              
      

Property, Plant & Equipment, Net                         50,045     
Other assets:
Deferred financing fees, net
5,069                  
Investment in subsidiaries
0                
Other noncurrent assets
6,164             
                                                   ------------
Total other assets                                       11,233      
                                                   ------------
TOTAL ASSETS                                           $211,127
                                                   ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable                                        $13,049
Income taxes payable (receivable)                            90
Accrued liabilities
34,363              
                    
Intercompany payable (receivables)
0              
      
Current long-term debt
210,216          
                                                   ------------
Total current liabilities
257,718              
                                        

Long-Term Liabilities:
Long-term debt
13,178              
Reserve for product liability and
   workers' compensation claims
13,871            
Other long-term obligations
4,332              
Liabilities subject to compromise
322,779                 
                                                   ------------
Total Liabilities
611,878               

Convertible preferred stock                             100,592       

Shareholders' Deficit:  
Common stock
1              
           
Additional paid-in-capital
17,017              
         
Retained earnings (deficit)
(505,120)              
Accumulated other comprehensive income (loss)           (13,241)
                                                   ------------
Total Shareholders Deficit                             (501,343)
                                                   ------------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT              $211,127
                                                   ============


         Werner Holding Co. (PA), Inc., and Subsidiaries
         Unaudited Consolidated Statement of Operations
                   Month Ended June 8, 2007
                        ($ in thousands)

Net sales                                               $40,575
Total cost of sales                                      29,824   
                                                   ------------
Gross profit                                             10,251

Total operating expenses
12,104             

Operating income (loss)
(1,853)             
Equity in net income (loss) of subsidiaries                   0      
Other income (expense), net
(117)           
                                                   ------------
Income (loss) before interest,
(1,970)          
reorganization items and taxes                           

Reorganization Items:
  (Restructuring Process Fees)                           (2,174)     
   Interest Income                                           18        
                                                   ------------
Reorganization Items, Net                                (2,156)    
                                                   ------------
Interest (loss) before interest and taxes
(4,126)           
Inter-company interest expense
0                 
Interest expense
5,542            
                                                   ------------
Income (loss) before income taxes
(9,668)             
Provision (benefit) for income taxes                          0
                                                   ------------
Net Income (Loss)                                       ($9,668)
                                                   ============


         Werner Holding Co. (PA), Inc., and Subsidiaries
         Unaudited Consolidated Statement of Cash Flows
                   Month Ended June 8, 2007
                        ($ in thousands)

Cash flows provided (used) by
   operating activities                                 ($1,292)

Cash Flows From Investing Activities:
Capital expenditures, net                                  (363)   
                                                   ------------
Net cash used in investing activities                      (363)   

Cash Flows From Financing Activities:
Capital lease payments
(241)           
Net borrowings under First Lien Credit Facility               0    
Debt issuance costs                                           0        
                                                   ------------
Net cash provided (used) by financing activities           (241)

Net increase (decrease) in cash and equivalents             688
Cash and equivalents at May 1, 2007                       2,999
                                                   ------------
Cash and equivalents at June 8, 2007                     $3,687
                                                   ============

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.  

On June 19, 2007, the Creditors Committee submitted their own
chapter 11 plan and disclosure statement explaining that plan.  
The hearing to consider the adequacy of the Creditors' Committee's
Disclosure Statement has been adjourned to August 23, 2007.  
(Werner Ladder Bankruptcy News, Issue No. 36; 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,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
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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