/raid1/www/Hosts/bankrupt/TCR_Public/070908.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, September 8, 2007, Vol. 11, No. 213
Headlines
ALLIED HOLDINGS: Reports $15.8 Mil. Cash Disbursements in May 2007
CALPINE CORP: Earns $1,000,000 in Month Ended June 30, 2007
CALPINE CORP: Posts $27,000,000 Net Loss in July 2007
DANA CORP: Earns $11,000,000 in Month Ended July 31, 2007
FEDERAL-MOGUL: Post $21.1 Million Net Loss in July 2007
HANCOCK FABRICS: Posts $1,497,000 Net Loss in August 2007
SOLUTIA INC: Earns $8,000,000 in Period Ending July 31, 2007
*********
ALLIED HOLDINGS: Reports $15.8 Mil. Cash Disbursements in May 2007
------------------------------------------------------------------
In a correctional notice, Thomas H. King, chief financial officer
of Allied Holdings Inc., informed the U.S. Bankruptcy Court for
the Northern District of Georgia that for the period May 1 to 31,
2007, Allied Holdings made cash disbursements totaling
$15,869,311.
The Debtors disclosed cash disbursements totaling $13,505,381
during May 2007.
As reported in the Troubled Company Reporter on Aug. 4, 2007, the
Debtor filed with the Court its operating report for the month
ended May 31, 2007 disclosing:
Allied Holdings, Inc.
Unaudited Consolidated Balance Sheet
As of May 31, 2007
(In Thousands)
Assets
Current Assets:
Cash and cash equivalents $34,128
Receivables, net of allowances 44,574
Related party receivables 27,617
Inventories 5,038
Deferred income taxes 1,907
Prepayments and other current assets 14,869
---------
Total current assets 128,133
Property and equipment, net 149,621
Goodwill, net 3,545
Other noncurrent assets 31,424
Investment in related parties 21,526
---------
TOTAL ASSETS $334,249
Liabilities and Stockholders' Deficit
Current liabilities not subject to compromise:
DIP credit facility $1,800
Accounts and notes payable 41,610
Accrued liabilities 58,448
---------
Total current liabilities 100,858
Long-term liabilities not subject to compromise
DIP credit facility 227,700
Postretirement benefits 14,244
Deferred income taxes 1,926
Other long-term liabilities 15,957
---------
Total long-term liabilities 259,827
Liabilities subject to compromise 198,210
Stockholders' deficit (225,646)
---------
Total liabilities & stockholders' deficit $334,249
Allied Holdings, Inc.
Unaudited Consolidated Statement of Operations
For the Month Ended May 31, 2007
(In Thousands)
Revenues $77,390
Operating Expenses
Salaries, Wages & Fringe benefits 38,368
Operating supplies & expenses 16,262
Purchased transportation 8,954
Insurance & claims 3,994
Operating tax & licenses 2,362
Depreciation & amortization 3,042
Rents 693
Communications & utilities 460
Other operating expenses 756
Loss on disposal of operating assets, net 35
---------
Total Operating Expenses 74,926
---------
Operating Income (Loss) 2,464
Other Income (Expense)
Interest expense (3,844)
Investment income 113
Foreign exchange gains, net 1,765
Equity in earnings of subsidiaries 736
---------
(1,230)
---------
Income before reorganization items and income taxes 1,234
Reorganization items (9,418)
---------
Loss before income taxes (8,184)
Income tax benefit -
---------
NET LOSS ($8,184)
Based in Decatur, Georgia, Allied Holdings Inc. (AMEX: AHI, other
OTC: AHIZQ.PK) -- http://www.alliedholdings.com/-- and its
affiliates provide short-haul services for original equipment
manufacturers and provide logistical services. The company and 22
of its affiliates filed for chapter 11 protection on July 31, 2005
(Bankr. N.D. Ga. Case Nos. 05-12515 through 05-12537). Jeffrey W.
Kelley, Esq., at Troutman Sanders, LLP, represented the Debtors in
their restructuring efforts. Henry S. Miller at Miller Buckfire &
Co., LLC, served as the Debtors' financial advisor. Anthony J.
Smits, Esq., at Bingham McCutchen LLP, provided the Official
Committee of Unsecured Creditors with legal advice and Russell A.
Belinsky at Chanin Capital Partners, LLC, provided financial
advisory services to the Committee. When the Debtors filed for
protection from their creditors, they estimated more than
$100 million in assets and debts.
On May 11, 2007, the Court confirmed Allied's Second Amended
Chapter 11 Plan of Reorganization. Allied emerged from
bankruptcy on May 29, 2007. (Allied Holdings Bankruptcy
News, Issue No. 55; Bankruptcy Creditors' Service, Inc.
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As of April 30, 2007, Allied Holdings Inc.'s consolidated balance
sheet showed $217,379,000 in total stockholders' deficit resulting
from total assets of $309,931,000 and total liabilities of
$527,310,000.
CALPINE CORP: Earns $1,000,000 in Month Ended June 30, 2007
-----------------------------------------------------------
Calpine Corporation
Consolidated Condensed Balance Sheet
As of June 30, 2007
ASSETS
Current assets:
Cash and cash equivalents $1,404,000,000
Accounts receivable, net 964,000,000
Inventories 144,000,000
Margin deposits and other prepaid expense 432,000,000
Restricted cash, current 410,000,000
Current derivative assets 245,000,000
Assets held for sale 378,000,000
Other current assets 56,000,000
---------------
Total current assets 4,033,000,000
Property, plant and equipment, net 12,759,000,000
Restricted cash, net of current portion 148,000,000
Investments 262,000,000
Long-term derivative assets 358,000,000
Non-current assets held for sale 0
Other assets 1,006,000,000
---------------
Total assets $18,566,000,000
===============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $697,000,000
Accrued interest payable 268,000,000
Debt, current 4,877,000,000
Current derivative liabilities 291,000,000
Income taxes payable 36,000,000
Liabilities held for sale 312,000,000
Other current liabilities 354,000,000
---------------
Total current liabilities 6,835,000,000
Debt, net of current portion 3,222,000,000
Deferred income taxes, net of current portion 602,000,000
Long-term derivative liabilities 489,000,000
Long-term liabilities 275,000,000
---------------
Total liabilities not subject to compromise 11,423,000,000
Liabilities subject to compromise 15,249,000,000
Minority interests 3,000,000
Stockholders' equity (deficit):
Common stock 1,000,000
Additional paid-in capital 3,269,000,000
Additional paid-in capital, loaned shares 22,000,000
Additional paid-in capital, returnable shares (22,000,000)
Accumulated deficit (11,337,000,000)
Accumulated other comprehensive loss (42,000,000)
---------------
Total stockholders' deficit (8,109,000,000)
Total liabilities and stockholders' deficit $18,566,000,000
===============
Calpine Corporation
Consolidated Condensed Statement of Operations
For the period ending June 30, 2007
Revenue:
Electricity and steam revenue $539,000,000
Sales of purchased power and gas
for hedging and optimization 163,000,000
Mark-to-market activities, net 61,000,000
Other revenue 11,000,000
------------
Total revenue 774,000,000
Cost of revenue:
Plant operating expense 68,000,000
Purchased power and gas expense
for hedging and optimization 123,000,000
Fuel expense 367,000,000
Depreciation & amortization expense 39,000,000
Operating plant impairments 0
Operating lease expense 4,000,000
Other cost of revenue 14,000,000
------------
Total cost of revenue 615,000,000
Gross profit (loss) 159,000,000
Equipment, development project & other impairments 0
Sales, general and administrative expense 10,000,000
Other operating expenses 1,000,000
------------
Income (loss) from operations 148,000,000
Interest expense 91,000,000
Interest (income) (2,000,000)
Minority interest expense (1,000,000)
Other (income) expense, net (1,000,000)
------------
Income (loss) before reorganization items
& provision (benefit) for income taxes 61,000,000
Reorganization items 76,000,000
------------
Income (loss) before provision
(benefit) for income taxes (15,000,000)
Provision (benefit) for income taxes (16,000,000)
------------
Net income (loss) $1,000,000
============
Based 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 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.
On June 20, 2007, the Debtors filed their Chapter 11 Plan and
Disclosure Statement. On Aug. 27, 2007, the Debtors filed their
Amended Plan and Disclosure Statement. The hearing to consider
the adequacy of the Disclosure Statement has been reset to
Sept. 25. (Calpine Bankruptcy News, Issue No. 59 Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000).
CALPINE CORP: Posts $27,000,000 Net Loss in July 2007
-----------------------------------------------------
Calpine Corporation
Consolidated Condensed Balance Sheet
As of July 31, 2007
ASSETS
Current assets:
Cash and cash equivalents $1,358,000,000
Accounts receivable, net 1,072,000,000
Inventories 129,000,000
Margin deposits and other prepaid expense 420,000,000
Restricted cash, current 429,000,000
Current derivative assets 244,000,000
Assets held for sale 379,000,000
Other current assets 55,000,000
---------------
Total current assets 4,086,000,000
Property, plant and equipment, net 12,723,000,000
Restricted cash, net of current portion 148,000,000
Investments 274,000,000
Long-term derivative assets 343,000,000
Non-current assets held for sale -
Other assets 990,000,000
---------------
Total assets $18,564,000,000
===============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $694,000,000
Accrued interest payable 220,000,000
Debt, current 4,876,000,000
Current derivative liabilities 253,000,000
Income taxes payable 38,000,000
Liabilities held for sale 276,000,000
Other current liabilities 395,000,000
---------------
Total current liabilities 6,752,000,000
Debt, net of current portion 3,209,000,000
Deferred income taxes, net of current portion 618,000,000
Long-term derivative liabilities 455,000,000
Long-term liabilities 280,000,000
---------------
Total liabilities not subject to compromise 11,314,000,000
Liabilities subject to compromise 15,349,000,000
Minority interests 8,000,000
Stockholders' equity (deficit):
Common stock 1,000,000
Additional paid-in capital 3,270,000,000
Additional paid-in capital, loaned shares 22,000,000
Additional paid-in capital, returnable shares (22,000,000)
Accumulated deficit (11,364,000,000)
Accumulated other comprehensive loss (14,000,000)
---------------
Total stockholders' deficit (8,107,000,000)
Total liabilities and stockholders' deficit $18,564,000,000
===============
Calpine Corporation
Consolidated Condensed Statement of Operations
For the period ending July 31, 2007
Revenue:
Electricity and steam revenue $570,000,000
Sales of purchased power and gas
for hedging and optimization 180,000,000
Mark-to-market activities, net 8,000,000
Other revenue 2,000,000
--------------
Total revenue 760,000,000
Cost of revenue:
Plant operating expense 58,000,000
Purchased power and gas expense
for hedging and optimization 101,000,000
Fuel expense 384,000,000
Depreciation & amortization expense 39,000,000
Operating plant impairments -
Operating lease expense 5,000,000
Other cost of revenue 10,000,000
--------------
Total cost of revenue 597,000,000
Gross profit (loss) 163,000,000
Equipment, development project & other impairments 0
Sales, general and administrative expense 13,000,000
Other operating expenses (7,000,000)
--------------
Income (loss) from operations 157,000,000
Interest expense 94,000,000
Interest (income) (5,000,000)
Minority interest expense 0
Other (income) expense, net 3,000,000
--------------
Income (loss) before reorganization items
& provision (benefit) for income taxes 65,000,000
Reorganization items 86,000,000
--------------
Income (loss) before provision
(benefit) for income taxes (21,000,000)
Provision (benefit) for income taxes 6,000,000
--------------
Net income (loss) (27,000,000)
Based 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 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.
On June 20, 2007, the Debtors filed their Chapter 11 Plan and
Disclosure Statement. On Aug. 27, 2007, the Debtors filed their
Amended Plan and Disclosure Statement. The hearing to consider
the adequacy of the Disclosure Statement has been reset to
Sept. 25. (Calpine Bankruptcy News, Issue No. 59 Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000).
DANA CORP: Earns $11,000,000 in Month Ended July 31, 2007
---------------------------------------------------------
Dana Corporation
Unaudited Condensed Balance Sheet
At July 31, 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalent assets $1,078,000,000
Accounts receivable
Trade 1,264,000,000
Other 317,000,000
Inventories 825,000,000
Assets of discontinued operations 101,000,000
Other current assets 141,000,000
--------------
Total current assets 3,726,000,000
Investments and other assets 0
Investments in equity affiliates 435,000,000
Net property, plant and equipment 1,730,000,000
Other noncurrent assets 1,000,000,000
--------------
TOTAL ASSETS $6,891,000,000
==============
LIABILITY AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
DIP Financing $900,000,000
Notes payable, including current portion
of long-term debt 39,000,000
Accounts payable 1,069,000,000
Liabilities of discontinued operations 45,000,000
Other accrued liabilities 832,000,000
--------------
Total current liabilities 2,885,000,000
Liabilities subject to compromise 3,971,000,000
Deferred employee benefits and other
non-current liabilities 473,000,000
Long-term debt 13,000,000
Minority interest in consolidated subsidiaries 93,000,000
--------------
Total liabilities 7,435,000,000
Shareholder' equity (deficit) (544,000,000)
--------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $6,891,000,000
==============
Dana Corporation
Unaudited Condensed Statement of Operations
For the Month Ended July 31, 2007
Net Sales $659,000,000
Costs and expenses
Costs of sales 629,000,000
Selling, general and administrative expenses 27,000,000
Realignment charges 4,000,000
Other income, net 12,000,000
--------------
Income (loss) from operations 11,000,000
Interest expense 9,000,000
Reorganization charges 12,000,000
--------------
Income (loss) before income taxes (10,000,000)
Income tax (expense) benefit 6,000,000
Minority interest 2,000,000
Equity in earnings of affiliates 1,000,000
--------------
Income (loss) before continuing operations (17,000,000)
Income (loss) from discontinued operations 28,000,000
--------------
Net income (loss) $11,000,000
==============
Dana Corporation
Unaudited Condensed Statement of Cash Flow
For the Month Ended July 31, 2007
OPERATING ACTIVITIES
Net income (loss) $11,000,000
Depreciation and amortization 23,000,000
Loss on sale of business (39,000,000)
Non-cash portion of U.K. pension charge 0
Decrease (increase) in working capital 31,000,000
Unremitted equity earnings in affiliates (1,000,000)
Other (1,000,000)
--------------
Net cash flow provided by
(used for) operating activities 24,000,000
INVESTING ACTIVITIES,
Purchases of property, plant and equipment (15,000,000)
Proceeds from sale of assets 64,000,000
Other 3,000,000
--------------
Net cash flow provided by
(used for) operating activities 52,000,000
FINANCING ACTIVITIES
Net change in short-term debt 1,000,000
Proceeds from DIP facility 0
--------------
Net cash flow provided by
(used for) financing activities 1,000,000
Net increase in cash equivalents 77,000,000
--------------
Cash and cash equivalents, beginning of period 1,001,000,000
Cash and cash equivalents, end of period $1,078,000,000
==============
Toledo, Ohio-based Dana Corp. -- http://www.dana.com/-- designs
and manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies. Dana employs 46,000 people in
28 countries. Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.
The company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30,
2005, the Debtors listed $7,900,000,000 in total assets and
$6,800,000,000 in total debts.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in
Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represent the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, serves as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
serves as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP,
represents the Official Committee of Unsecured Creditors. Fried,
Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the
Official Committee of Equity Security Holders. Stahl Cowen
Crowley, LLC serves as counsel to the Official Committee of
Non-Union Retirees.
The Debtors' filed their Joint Plan of Reorganization on Aug. 31,
2007. (Dana Corporation Bankruptcy News, Issue No. 51; Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000).
FEDERAL-MOGUL: Post $21.1 Million Net Loss in July 2007
-------------------------------------------------------
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Operations
For the Month Ended July 31, 2007
(In millions)
Net sales $233.1
Cost of products sold 196.2
--------
Gross margin 37.0
Selling, general & administrative expenses (43.9)
Amortization (1.2)
Reorganization items (6.3)
Interest income (expense), net (15.1)
Other income (expense), net 8.6
--------
Earnings before Income Taxes (20.8)
Income Tax (Expense) Benefit (0.3)
--------
Earnings before cumulative effect of change
in accounting principle (21.1)
--------
Net Earnings (loss) ($21.1)
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Cash Flows
For the month ended July 31, 2007
(In millions)
Cash Provided From (Used By) Operating Activities:
Net earning (loss) ($21.1)
Adjustments to reconcile net earnings (loss) to net cash:
Depreciation and amortization 12.2
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 (9.8)
Decrease (increase) in accounts receivable 55.7
Decrease (increase) in inventories (10.9)
Increase (decrease) in accounts payable (15.2)
Change in other assets & other liabilities (15.9)
Change in restructuring charge -
Refunds (payments) against asbestos liability -
--------
Net Cash Provided From Operating Activities (4.9)
Cash Provided From (Used By) Investing Activities:
Expenditures for property, plant & equipment (7.2)
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 (7.2)
Cash Provided From (Used By) Financing Activities:
Increase (decrease) in debt (9.3)
Sale of accounts receivable under securitization -
Dividends -
Other 0.7
--------
Net Cash Provided From Financing Activities (8.6)
Increase (Decrease) in Cash and Equivalents (20.7)
Cash and equivalents at beginning of period 79.8
--------
Cash and equivalents at end of period $59.1
========
The Debtors' assets totaled $6,483,000,000 as of July 31, 2007.
Liabilities were at $8,014,000,000.
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 began June 18, 2007, and is set
to conclude on Oct. 1, 2007. (Federal-Mogul Bankruptcy News,
Issue No. 146; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
HANCOCK FABRICS: Posts $1,497,000 Net Loss in August 2007
---------------------------------------------------------
Hancock Fabrics, Inc. and Subsidiaries
Consolidated Balance Sheet
As of August 4, 2007
ASSETS
Current assets:
Cash and cash equivalents $8,904,000
Receivables, less allowance for
doubtful accounts 5,736,000
Inventories 78,252,000
Income taxes refundable 7,116,000
Prepaid expenses 2,217,000
-------------
Total current assets 102,225,000
Property and equipment 43,883,000
Other assets 15,311,000
-------------
Total Assets $161,419,000
=============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities not subject to compromise
Accounts payable $15,218,000
Credit facility; DIP financing 17,500,000
Accrued liabilities 8,198,000
Deferred tax liabilities 7,152,000
Liabilities subject to compromise
Accounts payable 27,619,000
Accrued liabilities 14,331,000
Long-term lease financing obligations 1,682,000
Capital lease obligations 1,718,000
Postretirement benefits other than pensions 9,403,000
Pension and SERP liabilities 8,690,000
Other liabilities 9,121,000
-------------
Total Liabilities 120,632,000
Total Shareholders' Equity 40,787,000
-------------
Total liabilities and shareholders' equity $161,419,000
=============
Hancock Fabrics, Inc., and Subsidiaries
Consolidated Statement of Operations
For the Month Ended August 4, 2007
Sales $17,668,000
Cost of goods sold 9,511,000
-------------
Gross profit 8,157,000
Selling, general & admin expense 8,167,000
Depreciation and amortization 62,000
-------------
Operating income (loss) (72,000)
Reorganization expenses 908,000
Interest expense, net 517,000
-------------
Earnings (loss) before income taxes (1,497,000)
Income taxes 0
-------------
Net earnings (loss) ($1,497,000)
=============
Hancock Fabrics, Inc., and Subsidiaries
Consolidated Statement of Cash Flow
For the Month Ended August 4, 2007
Cash flows from operating activities:
Net earnings ($1,497,000)
Adjustments to reconcile net
earnings to cash flows used in
operating activities
Depreciation and amortization (436,000)
Amortization of deferred loan costs 235,000
LIFO charge (credit) 282,000
Reserve for store closings credits 221,000
Reserve for obsolete inventory 0
Reserve for sales returns and bad debts 3,000
Stepped rent accrual 181,000
Loss on disposition of property & equipment (2,023,000)
Gain on disposition of lease
financing obligations 0
Stock compensation expense (113,000)
(Increase) decrease in assets
Receivables and prepaid expenses (466,000)
Inventory at current cost 149,000
Other non-current assets (589,000)
Increase (decrease) in liabilities
Accounts payable 177,000
Accrued liabilities 87,000
Postretirement benefits other than pensions (122,000)
Long-term pension and SERP liabilities 156,000
Reserve for store closings (94,000)
Other liabilities 101,000
------------
Net cash used in operating activities (2,817,000)
Cash flows from investing activities:
Additions to property and equipment (21,000)
Proceeds from the disposition of
property and equipment 3,165,000
-------------
Net cash used in investing activities 3,144,000
Cash flows from financing activities:
Net borrowings on revolving credit agreement 0
Payments for lease financing (1,000)
Payments for capital leases (3,000)
Payments for loan costs 0
Purchase of treasury stock 0
Tax obligation settled with treasury stock 0
-------------
Net cash provided by financing activities (4,000)
-------------
Decrease in cash and cash equivalents 323,000
Cash, beginning of period 8,581,000
-------------
Cash, end of period $8,904,000
=============
Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc.
(OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty
retailer of a wide selection of fashion and home decorating
textiles, sewing accessories, needlecraft supplies and sewing
machines. Hancock Fabrics is one of the largest fabric retailers
in the United States, currently operating approximately 400 retail
stores in approximately 40 states. The company employs
approximately 7,500 people on a full-time and part-time basis.
Most of the company's employees work in its retail stores, or in
field management to support its retail stores.
The company and six of its debtor-affiliates filed for chapter 11
protection on March 21, 2007 (Bankr. D. Del. Lead Case No.
07-10353). Robert J. Dehney, Esq., at Morris, Nichols, Arsht &
Tunnell, represent the Debtors. When the Debtors filed for
protection from their creditors, they listed $241,873,900 in total
assets and 161,412,000 in total liabilities. The Court extended
the Debtors exclusive period to file a Chapter 11 Plan to Feb. 28,
2008. (Hancock Fabric Bankruptcy News, Issue No. 16, Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or
215/945-7000).
SOLUTIA INC: Earns $8,000,000 in Period Ending July 31, 2007
------------------------------------------------------------
Solutia Chapter 11 Debtors
Unaudited Statement of Consolidated Financial Position
As of July 31, 2007
ASSETS
Cash $52,000,000
Trade Receivables, net 223,000,000
Account Receivables-Unconsolidated Subsidiaries 58,000,000
Inventories 166,000,000
Other Current Assets 98,000,000
Assets of Discontinued Operations 6,000,000
--------------
Total Current Assets 603,000,000
Property, Plant and Equipment, net 652,000,000
Investments in Subsidiaries and Affiliates 687,000,000
Intangible Assets, net 100,000,000
Other Assets 55,000,000
--------------
Total Assets $2,097,000,000
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts Payable $210,000,000
Short Term Debt 922,000,000
Other Current Liabilities 160,000,000
Liabilities of Discontinued Operations 3,000,000
--------------
Total Current Liabilities 1,295,000,000
Long-Term Debt 0
Other Long-Term Liabilities 195,000,000
--------------
Total Liabilities not Subject to Compromise 1,490,000,000
Liabilities Subject to Compromise 1,871,000,000
Shareholders' Deficit (1,264,000,000)
--------------
Total Liabilities & Shareholders' Deficit $2,097,000,000
==============
Solutia Chapter 11 Debtors
Unaudited Consolidated Statement of Operations
For the Month Ended July 31, 2007
Total Net Sales $232,000,000
Total Cost Of Goods Sold 205,000,000
--------------
Gross Profit 27,000,000
Total MAT Expense 14,000,000
--------------
Operating Income (Loss) 13,000,000
Equity Earnings from Affiliates 0
Interest Expense, net (8,000,000)
Other Income, net 7,000,000
Reorganization Items:
Professional fees (6,000,000)
Employee severance and retention costs (1,000,000)
Settlements of prepetition claims 3,000,000
--------------
(4,000,000)
--------------
Income from continuing operations before taxes 8,000,000
Income tax expense (benefit) 0
Income from discontinued operations 0
--------------
Net Income $8,000,000
==============
Headquartered 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, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Debtors have asked the Court to extend
their exclusive plan filing period to Dec. 31, 2007. The
Disclosure Statement hearing began July 10, 2007, and is set to
continue on Sept. 20, 2007. (Solutia Bankruptcy News, Issue No.
97; 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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