TCR_Public/071103.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, November 3, 2007, Vol. 11, No. 261

                             Headlines


ASARCO LLC: Files Monthly Operating Report for September 2007
CATHOLIC CHURCH: Davenport Posts $422,521 Net Loss in Sept. 2007
COLLINS & AIKMAN: Posts $27.8MM Net Loss in Month Ended Oct. 11
HANCOCK FABRICS: Files Operating Report for Month Ended October 6
HOMEBANC CORP: Files Monthly Operating Report for September 2007

HOMEBANC CORP: Files Amended Schedules of Assets and Liabilities
HOMEBANC CORP: HomeBanc Mortgage Files Amended Schedules
MUSICLAND HOLDING: Posts $159,000 Net Loss in August 2007
MUSICLAND HOLDING: Posts $540,000 Net Loss in September 2007
REMY WORLDWIDE: Remy Int'l Files Jan. '08 Initial Operating Report

SOLUTIA INC: Posts $131MM Net Loss in Month Ended Sept. 30, 2007
VESTA INSURANCE: Gordon Gaines Files Sept. 2007 Operating Report
VESTA INSURANCE: Florida Select Files Sept. 2007 Operating Report


                             *********

ASARCO LLC: Files Monthly Operating Report for September 2007
-------------------------------------------------------------

                       ASARCO LLC, et al.
                         Balance Sheet
                    As of September 30, 2007

ASSETS
   Current Assets:
   Cash                                           $809,967,000
   Restricted Cash                                  28,186,000
   Accounts receivable, net                        152,882,000
   Inventory                                       252,403,000
   Prepaid expenses                                  3,121,000
   Other current assets                             30,279,000
                                               ---------------
Total Current Assets                             1,276,839,000

Net property, plant and equipment                  454,868,000
Other Assets
   Investments in subs                             112,443,000
   Advances to affiliates                              421,000
   Prepaid pension & retirement plan                         0
   Non-current deferred tax asset                   40,951,000
   Other                                            96,540,000
                                               ---------------
Total assets                                    $1,982,062,000
                                               ===============

LIABILITIES
   Postpetition liabilities:
   Accounts payable                                $67,884,000
   Accrued liabilities                             229,480,000
   Debtor-in-possession financing                            0
                                               ---------------
Total postpetition liabilities                     297,363,000

Prepetition liabilities:
Not subject to compromise - credit                   4,053,000
Not subject to compromise - other                   86,653,000
Advances from affiliates                            24,659,000
Subject to compromise                            1,501,777,000
                                               ---------------
Total prepetition liabilities                    1,617,141,000
                                               ---------------
Total liabilities                               $1,914,504,000
                                               ===============

OWNERS' EQUITY (DEFICIT)
Common stock                                       508,325,000
Additional paid-in capital                         104,578,000
Other comprehensive income                        (261,491,000)
Retained earnings: filing date                  (1,062,099,000)
                                               ---------------
Total prepetition owners' equity                  (710,687,000)
Retained earnings: post-filing date                778,244,000
                                               ---------------
Total owners' equity (net worth)                    67,558,000

Total liabilities and owners' equity            $1,982,062,000
                                               ===============

                      ASARCO LLC, et al.
             Consolidated Statement of Operations
                  Month Ended September 30, 2007

Sales                                             $182,980,000
Cost of products and services                      103,376,000
                                               ---------------
Gross profit                                        79,603,000

Operating expenses:
Selling and general & admin expenses                 2,664,000
Depreciation & amortization                          3,087,000
Provision accretion expense of asset
   retirement obligation                               163,000
                                               ---------------
Operating income                                    73,689,000

Interest expense                                       203,000
Interest income                                     (3,757,000)
Reorganization expenses                              7,139,000
Other miscellaneous (income) expenses               (7,509,000)
                                               ---------------
Income (loss) before taxes                          77,614,000
Income taxes                                        30,078,000
                                               ---------------
Net income (loss)                                  $47,536,000
                                               ===============

                      ASARCO LLC, et al.
          Consolidated Cash Receipts & Disbursements
                  Month Ended September 30, 2007

Receipts                                          $183,380,000
Disbursements:
Inventory material                                  28,770,000
Operating disbursements                             58,848,000
Capital expenditures                                 2,858,000
                                               ---------------
Total disbursements                                 90,477,000

Operating cash flow                                 92,903,000
Reorganization disbursements                         5,210,000
                                               ---------------
Net cash flow                                       87,693,000
Net payments to secured Lenders                              0
                                               ---------------
Net change in cash                                  87,693,000
Beginning cash balance                             750,460,000
                                               ---------------
Ending cash balances                              $838,153,000
                                               ===============

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

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

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

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

The Debtors' exclusive period to file a plan expires on Feb. 11,
2008.  (ASARCO Bankruptcy News, Issue No. 58; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).

    
CATHOLIC CHURCH: Davenport Posts $422,521 Net Loss in Sept. 2007
----------------------------------------------------------------


                  Diocese of Davenport in Iowa
                 Statement of Financial Position
                    As of September 30, 2007

ASSETS

Current Assets
   Cash and cash equivalents - unrestricted           $5,520,756
   Cash and cash equivalents - restricted              2,447,085
   Accounts receivable, net                              185,867
   Inventory                                                   -
   Prepaid expenses                                        1,321
   Professional retainers                                 55,652
                                                  --------------
Total Current Assets                                   8,210,681
                                                  --------------
Property and Equipment
   Real Property                                       4,163,800
   Machinery and equipment                                 6,000
   Furniture and fixtures                                  8,914
   Office equipment                                       59,500
   Leasehold improvements                                      -
   Vehicles                                               45,460
                                                  --------------
Total Property and Equipment                           4,283,674
                                                  --------------
Total Assets                                         $12,494,355
                                                  ==============

LIABILITIES AND NET ASSETS

Postpetition
   Current Liabilities:
      Salaries and wages
      Payroll taxes
      Real and personal property taxes
      Income taxes
      Sales taxes
      Notes payable, short term
      Accounts payable, trade                         $5,387,948
      Real property lease arrearage                            -
      Personal property lease arrearage                        -
      Accrued professional fees                                -
      Current portion of long-term debt                        -
      Pass-through collections                             4,630
      Additional Accrued Vacations                         5,574
                                                  --------------
   Total Current Liabilities                           5,398,152
                                                  --------------
   Long-Term Postpetition Debt, Net                            -
                                                  --------------
   Total Postpetition Liabilities                      5,398,152
                                                  --------------
   Prepetition
      Secured claims                                           -
      Priority unsecured claims                          160,888
      General unsecured claims                         1,655,316
                                                  --------------
   Total Prepetition Liabilities                       1,816,204
                                                  --------------
     Total Liabilities                                 7,214,356
                                                  --------------
Equity (deficit):
   Retained earnings/deficit at filing                 5,855,424
   Capital stock                                               -
   Additional paid-in capital                                  -
   Cumulative profit/loss since filing                (4,145,483)
   Post-petition contributions/distributions
      or draws                                                 -
   Market value adjustment                             3,570,058
                                                  --------------
   Total equity (deficit)                              5,279,999
                                                  --------------
Total liabilities & equity (deficit)                 $12,494,355
                                                  ==============


                  Diocese of Davenport in Iowa
                     Statement of Operations
              For the month ended September 30, 2007

Revenues
   Gross sales                                               $76
   Less: sales returns & allowances                            -
   Net sales                                                  76
   Less: cost of goods sold                                    -
   Gross profit                                               76
   Interest                                                2,675
   Other income:
      Charitable gifts                                     5,048
      Insurance receipts                                  94,701
      Investment income/fees                             111,842
                                                  --------------
   Total revenues                                        214,342
                                                  --------------
Expenses:
   Compensation to owner(s)/officer(s)                    12,209
   Salaries                                              106,847
   Commissions                                                 -
   Contract labor                                          8,315
   Rent/Lease:
      Personal property                                        -
      Real property                                            -
   Insurance                                             259,359
   Management fees                                             -
   Depreciation                                            5,255
   Taxes:
      Employer payroll taxes                               6,704
      Real property taxes                                      -
      Other taxes                                              -
   Other selling                                               -
   Other administrative                                  109,683
   Interest                                                    -
   Other expenses:
      Employee benefits                                   31,948
      Charity collection                                   1,677
      Medical assistance/Victim assistance                 5,112
      Utilities                                            6,319
      Transfer to unrestricted                                 -
      Professional fees                                      619
      Sabbatical                                               -
      Cemetery perpetual care                                  -
      Youth trip expenses                                104,655
                                                  --------------
         Total expenses                                  658,702
                                                  --------------
   Reorganization items:
      Professional fees                                        -
      Estimate of claims payments                              -
      Interest earned on accumulated cash
         from resulting Chapter 11 case                   21,839
      Gain or (Loss) from sale of equipment                    -
             U.S. Trustee quarterly fees                       -
      Advertising/printing/mailing                             -
                                                  --------------
         Total reorganization items                       21,839
                                                  --------------
Net profit (loss) before federal &
   state taxes                                          (422,521)
   Federal & state income taxes                                -
                                                  --------------
Net profit (loss)                                      ($422,521)
                                                  ==============


                 Diocese of Davenport in Iowa
           Statement of Cash Receipts and Disbursements
             For the month ended September 30, 2007

Cash receipts
   Rent/Leases collected                                  $3,625
   Cash received from sales                                   76
   Interest received                                      24,514
   Borrowings increase in accounts payable                     -
   Funds from shareholders, partners,
      or other insiders (Sale of property)                     -
   Capital contributions                                       -
   Annual diocesan appeal/donations                        5,048
   Investment income/misc.                                     -
   Insurance receipts                                     94,701
   Tribunal/Immigration/Faith Formation fees             108,217
      Decrease in prepaids/accounts receivable            97,178
   Misc./Increase in accounts payable                     17,285
                                                  --------------
   Total Cash Receipts                                   350,644

Cash disbursements:
   Payments for inventory                                      -
   Selling                                                     -
   Administrative                                        222,054
   Capital expenditures                                    2,895
   Principal payments on debt                                  -
   Interest paid                                               -
   Rent/Lease:
      Personal Property                                        -
      Real Property                                            -
   Amount paid to owner(s)/officer(s)
      Salaries                                            12,209
      Draws                                                    -
      Commissions/Royalties                                    -
      Expense Reimbursements                                   -
      Other                                                    -
   Salaries/Commissions (less employee
      withholding                                         83,051
   Management fees                                             -
   Taxes
      Employee withholding                                23,796
      Employer payroll taxes                               6,704
      Real property taxes                                      -
      Other taxes                                              -
   Other cash outflows:
      Insurance                                          259,359
      Utilities                                            6,319
      Medical Assistance                                   5,112
      Employee benefits                                   31,948
      Misc                                                     -
                                                  --------------
   Total Cash Disbursements                              653,447
                                                  --------------
Net increase (decrease) in cash                         (302,803)

Cash balance, beginning of period                      1,937,544

Cash balance, end of period                           $1,634,741
                                                  ==============

The Diocese of Davenport in Iowa filed for chapter 11 protection
(Bankr. S.D. Ia. Case No. 06-02229) on October 10, 2006.
Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the
Davenport Diocese in its restructuring efforts.  Hamid R.
Rafatjoo, Esq., and Gillian M. Brown, Esq., of Pachulski Stang
Zhiel Young Jones & Weintraub LLP represent the Official Committee
of Unsecured Creditors.  In its schedules of assets and
liabilities, the Davenport Diocese reported $4,492,809 in assets
and $1,650,439 in liabilities.  Davenport's exclusive period to
file a plan expires on Nov. 16, 2007.  (Catholic Church Bankruptcy
News, Issue No. 106; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).  


COLLINS & AIKMAN: Posts $27.8MM Net Loss in Month Ended Oct. 11
---------------------------------------------------------------  

                   Collins & Aikman Corporation
                          Balance Sheet
                      As of October 11, 2007

                              ASSETS

Cash                                               $237,216,450
Accounts receivable-trade, net                       85,520,881
Other non-trade receivables                           5,788,766
Inventories, net                                     14,874,854
Tooling and molding, net-current                     23,214,626
Prepaids & other current assets                      16,381,002
Deferred tax assets-current                                   0
                                                ---------------
TOTAL CURRENT ASSETS                                382,996,580

Investments in subsidiaries                       2,525,827,321
Fixed assets, net                                   128,988,068
Goodwill, net                                        59,622,121
Deferred tax assets-long term                                 0
Tooling and molding, net-long term                    1,592,081
Other noncurrent assets                              23,282,915
Intercompany accounts - net                          32,376,905
Prepetition intercompany - net                      614,887,010
                                                ---------------
TOTAL ASSETS                                     $3,769,573,001
                                                ===============

                       LIABILITIES & EQUITY

Notes payable                                                $0
Short term borrowings                                         0
Advance on receivables                                        0
Current portion-long term debt                      111,060,000
Current portion-capital leases                                0
Accounts payable                                     33,066,542
Accrued interest payable                            110,546,668
Accrued & other liabilities                           5,410,126
Income taxes payable                                  4,407,338
                                                ---------------
Total current liabilities                           264,490,675

Liabilities subject to compromise                 2,334,889,123
Deferred income taxes                                30,472,400
                                                ---------------
Total liabilities                                 2,629,852,198

Total equity                                      1,139,720,803
                                                ---------------
TOTAL LIABILITIES & EQUITY                       $3,769,573,001
                                                ===============



                  Collins & Aikman Corporation
                        Income Statement
                  Month Ended October 11, 2007

Net outside sales                                   $66,166,439
I/C Net sales                                        (5,828,968)
                                                ---------------
Total sales                                          60,337,471

Cost of Sales                                        65,238,032
                                                ---------------
Gross profit                                         (4,900,560)

Selling, general & administrative expenses           11,161,472
                                                ---------------
Operating income                                    (16,062,032)

Interest expenses, net                                9,463,010
Intercompany interest, net                           (4,342,837)
Preferred stock accretion                                     0
Miscellaneous (income)/expense                                0
Corporate allocation adjustment                               0
Commission income                                      (263,018)
Commission expense                                            0
Royalty income                                         (502,052)
Royalty expense                                               0
Joint Venture (Income)/Expense                                0
Minority interest in cons net income                          0
Dividend income                                               0
Discount/Income for Carcorp.                                  0
Gain/(Loss) early extinguishments of debt                     0
Discount/Premium on hedges                                    0
(Gain)/Loss on hedges                                         0
(Gain)/Loss on swaps                                          0
NAAIS Intercompany sales profit                               0
Loss on sale of receivables                                   0
Restructuring provision                                       0
Asset Impairment                                      5,652,570
Foreign transactions - (Gain)/Loss                    1,727,366
Amort of discount on NPV of liabilities                       0
(Gain)/Loss on sale-leaseback transaction                     0
                                                ---------------
Income from continuing operations before taxes      (27,797,071)

Federal income tax                                            0
State income tax                                              0
Foreign income tax                                       35,069
                                                ---------------
Income from continuing operations                   (27,832,140)

Discontinued operations                                       0
Gain/Loss on sale of divisions                                0
Extraordinary items                                           0
Integration                                                   0
                                                ---------------
NET INCOME (LOSS)                                  ($27,832,140)
                                                ===============

Headquartered in Troy, Mich., Collins & Aikman Corporation --
http://www.collinsaikman.com/-- is a global leader in cockpit         
modules and automotive floor and acoustic systems and is a leading
supplier of instrument panels, automotive fabric, plastic-based
trim, and convertible top systems.  The Company has a workforce of
approximately 23,000 and a network of more than 100 technical
centers, sales offices and manufacturing sites in 17 countries
throughout the world.  The Company and its debtor-affiliates filed
for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich.
Case No. 05-55927).  Richard M. Cieri, Esq., at Kirkland & Ellis
LLP, represents C&A in its restructuring.  Lazard Freres & Co.,
LLC, provides the Debtors with investment banking services.   
Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP,
represents the Official Committee of Unsecured Creditors
Committee.  When the Debtors filed for protection from their
creditors, they listed $3,196,700,000 in total assets and
$2,856,600,000 in total debts.

On Aug. 30, 2006, the Debtors filed a Joint Chapter 11 Plan and a
Disclosure Statement explaining that plan.  On Dec. 22, 2006, they
filed an Amended Plan and on Jan. 22, 2007, filed a modified
Amended Plan.  On Jan. 25, 2007, the Court approved the adequacy
of the Disclosure Statement.  On July 18, 2007, the Court
confirmed the Debtors' Liquidation Plan which became effective on
Oct. 12, 2007.  The Debtors' cases are set to be closed on Feb.
28, 2008.  (Collins & Aikman Bankruptcy News, Issue No. 78;
Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/  
or 215/945-7000)


HANCOCK FABRICS: Files Operating Report for Month Ended October 6
-----------------------------------------------------------------

              Hancock Fabrics, Inc. and Subsidiaries
                    Consolidated Balance Sheet
                      As of October 6, 2007

ASSETS
Current assets:
   Cash and cash equivalents                         $4,225,000
   Receivables, less allowance for
      doubtful accounts                               5,834,000
   Inventories                                       86,573,000
   Income Taxes Refundable                            5,246,000
   Prepaid Expenses                                   1,821,000
                                                   ------------
                                            
   Total current assets                             103,699,000

Property and equipment                               43,348,000
Other assets                                         14,993,000
                                                   ------------
Total Assets                                       $162,040,000
                                                   ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities not subject to compromise
   Accounts payable                                 $19,393,000
   Credit facility; DIP financing                    17,500,000
   Accrued liabilities                                9,720,000
   Deferred tax liabilities                           7,152,000

Liabilities subject to compromise
   Accounts payable                                  27,716,000
   Accrued liabilities                               14,102,000
   Long-term lease financing obligations              1,679,000
   Capital lease obligations                          1,710,000
   Postretirement benefits other than pensions        9,542,000
   Pension and SERP liabilities                       8,881,000
   Other liabilities                                  9,082,000
                                                   ------------
Total Liabilities                                   126,477,000
Total Shareholders' Equity                           35,563,000
                                                   ------------
Total liabilities and shareholders' equity         $162,040,000
                                                   ============
              
             Hancock Fabrics, Inc., and Subsidiaries
               Consolidated Statement of Operations
                For the Month Ended October 6, 2007

Sales                                               $26,043,000
Cost of goods sale                                   14,040,000
                                                    -----------
Gross profit                                         12,003,000

Selling, general & admin expense                     11,848,000
Depreciation and amortization                           294,000
                                                    -----------
Operating income (loss)                                (139,000)
                                                   
Reorganization expenses                               1,298,000
Interest expense, net                                   349,000
                                                    -----------
Earnings (loss) before income taxes                  (1,786,000)
Income taxes                                                  0
                                                    -----------
Net earnings (loss)                                 ($1,786,000)
                                                   ============

             Hancock Fabrics, Inc., and Subsidiaries
               Consolidated Statement of Cash Flow
               For the Month Ended October 6, 2007

Cash flows from operating activities:
   Net earnings                                     ($1,786,000)
   Adjustments to reconcile net                                   
   earnings to cash flows used in
   operating activities                                              
      Depreciation and amortization                     513,000
      Amortization of deferred loan costs               104,000
      LIFO charge (credit)                             (781,000)
      Reserve for store closing credits                 (50,000)
      Reserve for obsolete inventory                          0
      Reserve for sales returns and bad debts                 0
      Stepped rent accrual                              (31,000)
      Loss on disposition of property and equipment           0
      Gain on disposition of lease                           
           financing obligations                              0
      Stock compensation expense                         42,000
   (Increase) decrease in assets
      Receivables and prepaid expenses                   46,000
      Inventory at current cost                      (4,327,000)
   Income tax refundable                              1,870,000
      Other non-current assets                           20,000
   Increase (decrease) in liabilities
      Accounts payable                                2,825,000
      Accrued liabilities                             1,300,000
      Postretirement benefits other than pensions       (42,000)
      Long-term pension and SERP liabilities            156,000
      Reserve for store closings                       (115,000)
      Other liabilities                                 (28,000)
                                                    -----------
Net cash used in operating activities                  (184,000)

Cash flows from investing activities:
   Additions to property and equipment                 (410,000)
   Proceeds from the disposition of property
     and equipment                                        4,000
                                                    -----------  
Net cash used in investing activities                  (406,000)

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                             (30,000)
   Purchase of treasury stock                                0
   Tax obligation settled with treasury stock                0
                                                   -----------
Net cash used in financing activities                  (34,000)
                                                   -----------
Decrease in cash and cash equivalents                 (624,000)
Cash, beginning of period                            4,849,000
                                                   -----------
Cash, end of period                                 $4,225,000
                                                  ============

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.  As of Sept. 1, 2007, Hancock
Fabrics disclosed total assets of $159,673,000 and total
liabilities of 122,316,000.  The Court extended the Debtors'
exclusive period to file a Chapter 11 Plan to Feb. 28, 2008.  
(Hancock Fabric Bankruptcy News, Issue No. 19, Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or    
215/945-7000).


HOMEBANC CORP: Files Monthly Operating Report for September 2007
----------------------------------------------------------------
HomeBanc Mortgage Corporation and its debtor-affiliates filed
with the United States Bankruptcy Court for the District
of Delaware a consolidated monthly operating report for the
month ended September 30, 2007.

The Debtors reported roughly $4,569,679,000 in total assets,
including about $12,035,000 in cash; $10,449,000 in restricted
cash; and $15,650,000 in property and equipment.  The Debtors
have about $14,736,000 in accrued interest receivables.

The Debtors reported a total of $4,459,987,000 in liabilities,
including around $24,309,000 in loan funding payable;
($18,562,000) in other accounts payable; and $589,000 in accounts
payable to affiliates.

During the period, the Debtors earned about $1,623,000 in net
interest income after provision for loan losses on total revenues
of roughly $2,842,000.  In the aggregate, the Debtors recorded a
net loss of $27,931,000 during month.

The Debtors reported cash and cash equivalents of $20,255,000 at
the beginning of the period, and $12,035,000 at the end of the
period.

A full-text copy of the Debtors' September 2007 operating report
is available at no charge at http://researcharchives.com/t/s?24ba

Headquartered in Atlanta, Ga., HomeBanc Mortgage Corporation --
http://www.homebanc.com/-- is a mortgage banking company focused        
on originating primarily prime purchase money residential mortgage
loans in the Southeast United States.  

HomeBanc Mortgage together with five affiliates filed for chapter
11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079
through 07-11084).  Joel A. Waite, Esq., at Young, Conaway,
Stargatt & Taylor was selected by the Debtors to represent them
in these cases.  The Debtors' financial condition as of June 30,
2007, showed total assets of $5,100,000,000 and total liabilities
of $4,900,000,000.

The Debtors' exclusive period to file a plan ends on Dec. 7, 2007.
(HomeBanc Bankruptcy News, Issue No. 11; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000).


HOMEBANC CORP: Files Amended Schedules of Assets and Liabilities
----------------------------------------------------------------
Pursuant to Rule 1009(a) of the Federal Rules of Bankruptcy
Procedure and Rule 1009-2 of the Local Rules of Bankruptcy
Practice and Procedure of the United States Bankruptcy Court for
the District of Delaware, HomeBanc Corp. amended the Schedule F,
list of creditors holding unsecured claims, in its Schedules of
Assets and Liabilities:

          Wells Fargo Bank, National       $51,547,000
            Association, as property
            trustee for HMB Capital Trust I

          Wilmington Trust Company, as      82,475,000
            trustee for HMB Capital Trust IV

          Wilmington Trust Company, as      41,238,000
            trustee for HMB Capital Trust IV
                                          ------------
                                          $175,250,000
                                          ============

HomeBanc Corp.'s original schedules disclosed:

A.    Real Property                                           $0

B.    Personal Property
B.1   Cash on hand                                             0
B.2   Bank Accounts                                    1,956,408
B.3   Security Deposit                                         0
B.4   Household goods                                          0
B.5   Book, artwork and collectibles                           0
B.6   Wearing apparel                                          0
B.7   Furs and jewelry                                         0
B.8   Firearms and other equipment                             0
B.9   Insurance Policies                                 unknown
B.10  Annuities                                                0
B.11  Interests in an education IRA                            0
B.12  Interests in pension plans                               0
B.13  Stock and Interests                
        ABETTERWAYHOME Corp.                                  10
        Abetterwayhome Finance LLC II                    250,000
        Abetterwayhome Finance LLC                       250,000
        HMB Acceptance Corp.                                 100
        HomeBanc Funding Corp.                               100
        HomeBanc Funding Corp. II                            100
        HomeBanc Mortgage Corporation                         10
        HomeBanc Mortgage Trust 2005-4                   unknown
        HomeBanc Mortgage Trust 2005-5                   unknown
        HomeBanc Mortgage Trust 2006-2                   unknown
        HMB Capital Trust V                              unknown
        HMB Capital Trust IV                             unknown
        HMB Capital Trust I                              unknown
B.14  Interests in partnerships & joint venture                0
B.15  Government and corporate bonds                     unknown
B.16  Accounts Receivable                    
        HomeBanc Funding Corp.                        87,237,473
        HomeBanc Funding Corp. II                    109,194,791
        HomeBanc Mortgage Trust 2005-3                18,448,127
        HomeBanc Mortgage Trust 2005-4                52,752,579
        HomeBanc Mortgage Trust 2005-5                39,196,433
B.17  Alimony                                                  0
B.18  Other Liquidated Debts Owing Debtor                      0
B.19  Equitable or future interests                            0
B.20  Interests in estate death benefit plan                   0
B.21  Other Contingent and Unliquidated Claims                 0
B.22  Patents                                                  0
B.23  Licenses, franchises & other intangibles           unknown
B.24  Customer lists or other compilations                     0
B.25  Vehicles                                                 0
B.26  Boats, motors and accessories                            0
B.27  Aircraft and accessories                                 0
B.28  Office Equipment                                         0
B.29  Equipment and Supplies for Business                 19,944
B.30  Inventory                                                0
B.31  Animals                                                  0
B.32  Crops                                                    0
B.33  Farming equipment and implements                         0
B.34  Farm supplies, chemicals and feed                        0
B.35  Other Personal Property                                  0
  
      TOTAL SCHEDULED ASSETS                        $309,306,074
      ==========================================================  
  
C.   Property Claimed as Exempt                               $0
  
D.   Creditors Holding Secured Claims                          0
  
E.   Creditors Holding Unsecured Priority Claims       2,306,794
  
F.   Creditors Holding Unsecured Non-priority Claims
       HMB Acceptance Corp.                           31,584,001
       HomeBanc Capital Trust I                          248,972
       HomeBanc Capital Trust IV                         112,265
       HomeBanc Capital Trust V                           54,610
       HomeBanc Mortgage Corporation                 128,350,497
       HomeBanc Mortgage Trust 2004-1                139,813,430
       HomeBanc Mortgage Trust 2004-2                  8,098,712
       HomeBanc Mortgage Trust 2005-1                  1,239,451
       HomeBanc Mortgage Trust 2005-2                  2,363,367
       HomeBanc Mortgage Trust 2006-2                     91,583
       Others                                            unknown
  
     TOTAL SCHEDULED LIABILITIES                    $314,263,682
     ===========================================================  

Headquartered in Atlanta, Ga., HomeBanc Mortgage Corporation --
http://www.homebanc.com/-- is a mortgage banking company focused        
on originating primarily prime purchase money residential mortgage
loans in the Southeast United States.  

HomeBanc Mortgage together with five affiliates filed for chapter
11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079
through 07-11084).  Joel A. Waite, Esq., at Young, Conaway,
Stargatt & Taylor was selected by the Debtors to represent them
in these cases.  The Debtors' financial condition as of June 30,
2007, showed total assets of $5,100,000,000 and total liabilities
of $4,900,000,000.

The Debtors' exclusive period to file a plan ends on Dec. 7, 2007.
(HomeBanc Bankruptcy News, Issue No. 12; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000).


HOMEBANC CORP: HomeBanc Mortgage Files Amended Schedules
--------------------------------------------------------
Pursuant to Rule 1009(a) of the Federal Rules of Bankruptcy
Procedure and Rule 1009-2 of the Local Rules of Bankruptcy
Practice and Procedure of the United States Bankruptcy Court for
the District of Delaware, HomeBanc Mortgage Corporation amended
Schedules A, B-35, F and G of its Schedules of Assets and
Liabilities.

The amended Schedule A includes these real properties that HBMC
owns through foreclosure:

                                          Current Market Value
                                          Without Deducting
Address                                   Secured Claim/Exemption
-------                                   -----------------------
1735 Fielding Way, Hampton, Georgia                     $117,902
2061 Millstone Drive SW, Conyers, Georgia                223,094
207 Lexington Village, Peachtree City, Georgia           197,910
4395 Windson Court SW, Lilburn, Georgia                  232,800
6125 Yeats Manor Drive, Tampa, Florida                   510,100
619 Glenridge Court, Conyers, Georgia                    103,500
7227 Thoreau Circle, Atlanta, Georgia                    268,160
1518 Bramlett Hill Drive, Lawrenceville, Georgia         230,100
                                                      ----------
                                                      $1,883,566
                                                      ==========

HBMC's Schedule B-35, which includes personal property, other
than the kinds listed, aggregate $34,029,337.  The amount
consists of:

          Deferred Compensation             $5,840,992
          Insurance Captives                   unknown
          Leasehold Improvements             5,859,572
          Loans Receivable                   1,482,628
          Mortgage Servicing Rights            unknown
          WIP - Homebanc Way II Internally  20,846,146
            Developed Software

HBMC amended its Schedule F, the list of creditors holding
unsecured nonpriority claims, listing Alston & Bird LLP, with
claim amount of $0.

HBMC includes these entities as parties to lease or contract in
its Schedule G of executory contacts and unexpired leases:

Entity                                         Lease or Contract
------                                         -----------------
General Electric Mortgage        Reinsurance Agreement dated
  Insurance Corporation            February 1, 2003

Group Mortgage Reinsurance       Amendment No. 1 dated October 1,
  Company                          2004, to Reinsurance Agreement
                                   dated January 30, 2004

J&H Marsh & McLennan             Amendment No. 1 dated October 1,
                                   2004, to Reinsurance Agreement
                                   dated January 30, 2004

LeBoeuf, Lamb, Greene & MacRae,  Participation Agreement dated
  LLP                              September 30, 2003

Republic Mortgage Insurance      Amendment No. 1 dated October 1,
  Company                          2004, to Reinsurance Agreement
                                   dated January 30, 2004

Sponsored Captive RE, Inc.       Reinsurance Agreement dated
                                   February 1, 2003

Sponsored Captive RE, Inc.       Participation Agreement dated
                                   September 30, 2003

Vermont Insurance Management,    Participation Agreement dated
  Inc.                             September 30, 2003


                       Original Schedules

HomeBanc Mortgage Corporation's original schedules of assets and
liabilities disclosed:

A.    Real Property                                           $0
  
B.    Personal Property
B.1   Cash on hand                                             0
B.2   Bank Accounts                                    9,271,809
B.3   Security Deposit                                   279,128
B.4   Household goods                                          0
B.5   Book, artwork and collectibles                           0
B.6   Wearing apparel                                          0
B.7   Furs and jewelry                                         0
B.8   Firearms and other equipment                             0
B.9   Insurance Policies                                 unknown
B.10  Annuities                                                0
B.11  Interests in an education IRA                            0
B.12  Interests in pension plans                               0
B.13  Stock and Interests                
        HMB Mortgage Partners LLC                        unknown
        HMB Title Partners, LLC                          unknown
B.14  Interests in partnerships & joint venture          unknown
B.15  Government and corporate bonds                     unknown
B.16  Accounts Receivable                    
        Accrued interest due from
         various borrowers to HBMC                     1,980,456
        Sale adjustments                                   7,591
        HomeBanc Foundation salary accrual                13,804
        Receivables related to modification
         on lot loans                                      9,537
       Corporate advances due from borrowers             567,080
       Escrow advances due from borrowers              4,253,294
       Principal and interest advances due
        from investors                                   114,294
      Loan closing fees due from attorneys               203,527
      Funds due from serv. custodial for escrow        1,067,898
      Funds due from serv. custodial for buydown          12,803
      Intercompany accounts receivable             1,162,921,892
B.17  Alimony                                                  0
B.18  Other Liquidated Debts Owing Debtor                      0
B.19  Equitable or future interests                            0
B.20  Interests in estate death benefit plan                   0
B.21  Other Contingent and Unliquidated Claims       
        Chase Home Finance, LLC Holdbacks,
         Chase Home Finance LLC                          135,940
        CitiMortgage Inc Holdbacks, CitiMortgage Inc      99,982
        Countrywide Indemnification Deposit,
         Countrywide Home Loans                          611,202
B.22  Patents                                            unknown
B.23  Licenses, franchises & other intangibles               n/a
B.24  Customer lists or other compilations                     0
B.25  Vehicles                                                 0
B.26  Boats, motors and accessories                            0
B.27  Aircraft and accessories                                 0
B.28  Office Equipment                                16,184,777
B.29  Equipment and Supplies for Business                389,056
B.30  Inventory                                                0
B.31  Animals                                                  0
B.32  Crops                                                    0
B.33  Farming equipment and implements                         0
B.34  Farm supplies, chemicals and feed                        0
B.35  Other Personal Property                  
        Leasehold improvements                         5,859,572
        Loans receivable                               1,482,628
        Mortgage servicing rights                        unknown
        Real estate owned                              1,883,566
        WIP - HomeBanc Way II software                20,846,146
        Deferred compensation                          5,840,992
  
      TOTAL SCHEDULED ASSETS                      $1,234,036,972
      ==========================================================  
  
C.    Property Claimed as Exempt                               0
  
D.    Creditors Holding Secured Claims              $636,646,629
  
E.    Creditors Holding Unsecured Priority Claims      4,693,579
  
F.    Creditors Holding Unsecured Non-priority
Claims                             
        ACS Commercial Solutions                          88,278
        Alston & Bird LLP                                100,000
        American Fiber Systems                            12,486
        Arena Sports Marketing LLC                       140,000
        AT&T                                             126,717
        Broadridge                                        27,662
        Broker Price Opinion.Com, Inc.                    20,749
        BrokerPriceOpinioncom Inc.                        10,000
        CDW Direct                                        18,189
        HBTP                                           4,245,719
        HomeBanc Capital Trust IV                        111,732
        HomeBanc Funding Corp.                       651,458,703
        HomeBanc Funding Corp. II                    386,509,083
        Others                                        21,095,424
  
       TOTAL SCHEDULED LIABILITIES                $1,705,304,950
       =========================================================

Headquartered in Atlanta, Ga., HomeBanc Mortgage Corporation --
http://www.homebanc.com/-- is a mortgage banking company focused        
on originating primarily prime purchase money residential mortgage
loans in the Southeast United States.  

HomeBanc Mortgage together with five affiliates filed for chapter
11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079
through 07-11084).  Joel A. Waite, Esq., at Young, Conaway,
Stargatt & Taylor was selected by the Debtors to represent them
in these cases.  The Debtors' financial condition as of June 30,
2007, showed total assets of $5,100,000,000 and total liabilities
of $4,900,000,000.

The Debtors' exclusive period to file a plan ends on Dec. 7, 2007.
(HomeBanc Bankruptcy News, Issue No. 12; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000).


MUSICLAND HOLDING: Posts $159,000 Net Loss in August 2007
---------------------------------------------------------


                    Musicland Holding Corp.
                   Consolidated Balance Sheet
                     As of August 31, 2007

ASSETS
Current Assets
   Cash                                         $12,616,000        
   Letters of Credit/Other Deposits                 415,000
   Other
      Amounts due from TransWorld                         0
      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                                      15,375,000
                                                 ==========

Fixed Assets                                              0
Other assets
   Transport Logistic deposit                             0
   Insurance Deposits                             3,977,000
   Utility and Tax Deposits                               0
                                                 ----------
      TOTAL ASSETS                              $19,352,000
                                                 ==========

Liabilities & Shareholders' deficit
Current liabilities
   Accounts payable
      Due to Transworld                                   0
      Due to Deluxe                                       0
      Expense accruals                            2,840,000
   Other accrued liabilities
      Insurance Reserve                           3,380,000
      5% Admin. Fee on Wachovia L/C                 250,000
      Miscellaneous                                  29,000

                                                 ----------
     Total                                        6,499,000
                                                 ----------

DIP financing                                             0
Other LT Liabilities                                      0       
Liabilities subject to compromise               315,047,000
Shareholders' deficit                          (302,194,000)
                                               ------------
     TOTAL LIABILITIES &
     SHAREHOLDERS' DEFICIT                      $19,352,000
                                               ============


                      Musicland Holding Corp.
                     Statement of Operations
                 For the Month Ended August 31, 2007


Merchandise revenue                                       0       
Non-merchandise revenue                                   0
                                                -----------
   Net sales                                              0

Cost of good sold                                         0
                                                -----------
   Gross Profit                                           0

Store operating expenses
   Payroll                                                0
   Occupancy                                              0
   Other                                            ($2,000)
   Store expenses                                         0
                                                 ----------
General & administrative                             (2,000)
                                                 ----------
EBITDA (Loss)                                        (2,000)

   Chapter 11 & related charges                    (132,000)
   Sale to Transworld                                     0
   Hilco 65                                               0
   Media Play Wind down                                   0
   Depreciation & Amortization                            0
                                                 ----------
            Operating income (Loss)                (134,000)

   Interest income (expense)                         49,000
   Other non-operating charges                      (74,000)
                                                 ----------
            Earnings before Taxes                  (159,000)
                                                 ----------
   Income tax                                             0
                                                 ----------
            Net earnings (Loss)                   ($159,000)
                                                 ==========


                     Musicland Holding Corp.
                     Statement of Cash Flow
                 For the Month Ended August 31, 2007


Operating activities                       
   Net earnings (Loss)                            ($159,000)
   Cash                                          16,897,000  
   Adjustments to reconcile net earnings (loss)
      to net cash provided by (used in)
      operating activities:                               0
          Loss on utility deposits write off              
   Other Current Assets                             250,000
   Changes in operating assets & liabilities:             0
      Inventory                                           0
      Other current assets                                0
      Other Non-current Assets                            0
      Accounts payable                                    0
      Other accrued liabilities                           0
                                                          0
   Liabilities subject to compromise                      0
                                                 ----------
   Net cash provided by (used in)   
         operating activities                        91,000
                                                 ----------

Investing activities
   Change in other long term asset/liabilities            0
   Retirement of fixed assets                             0
       Net cash                                           0

Financing activities
   Distribution to Secured Creditors                      0
                                                 ----------
Increase/decrease in cash                            91,000
                                                 ----------
   Cash at the beginning of Period               12,525,000
                                                 ----------
   Cash at the end of Period                    $12,616,000
                                                 ==========

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.  
(Musicland Bankruptcy News, Issue No. 40; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Posts $540,000 Net Loss in September 2007
------------------------------------------------------------

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

ASSETS
Current Assets
   Cash                                         $12,108,000      
   Letters of Credit/Other Deposits                 415,000       
   Other
   Amounts due from TransWorld                            0
   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                                         14,867,000
                                                 ==========

Fixed Assets                                              0         
Other assets
   Transport Logistic deposit                             0       
   Insurance Deposits                             3,977,000
   Utility and Tax Deposits                               0
                                                 ----------
   TOTAL ASSETS                                 $18,844,000
                                                 ==========

Liabilities & Shareholders' deficit
Current liabilities
   Accounts payable
      Due to Transworld                                   0         
      Due to Deluxe                                       0       
      Expense accruals                            2,840,000
      Other accrued liabilities
      Insurance Reserve                           3,380,000
      5% Admin. Fee on Wachovia L/C                 250,000
      Miscellaneous                                  29,000

                                                 ----------
      Total                                       6,499,000      
                                                 ----------

DIP financing                                             0
Other LT Liabilities                                      0
Liabilities subject to compromise               315,047,000
Shareholders' deficit                          (302,702,000)
                                                 ----------
      TOTAL LIABILITIES &
      SHAREHOLDERS' DEFICIT                     $18,844,000
                                                 ==========


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


Merchandise revenue                                       0          
Non-merchandise revenue                                   0       
                                                -----------
   Net sales                                              0

Cost of good sold                                         0
                                                -----------
    Gross Profit                                          0

Store operating expenses
   Payroll                                                0
   Occupancy                                              0
   Other                                            ($1,000)
   Store expenses                                         0
                                                 ----------
General & administrative                             (1,000)
                                                 ----------
EBITDA (Loss)                                        (1,000)

   Chapter 11 & related charges                    (360,000)      
   Sale to Transworld                                     0       
   Hilco 65                                               0
   Media Play Wind down                                   0
   Depreciation & Amortization                            0
                                                 ----------
      Operating income (Loss)                      (361,000)

   Interest income (expense)                         46,000
   Other non-operating charges                     (225,000)
                                                 ----------
          Earnings before Taxes                    (540,000)
                                                 ----------
   Income tax                                             0
                                                 ----------
      Net earnings (Loss)                         ($540,000)
                                                 ==========


                     Musicland Holding Corp.
                     Statement of Cash Flow
                For the Month Ended September 30, 2007


Operating activities
   Net earnings (Loss)                            ($540,000)      
   Adjustments to reconcile net earnings (loss)
    to net cash provided by (used in)
    operating activities:                            32,000
        Loss on utility deposits write off                     
                                 
   Changes in operating assets & liabilities:             0
      Inventory                                           0
        Other current assets                              0
        Other Non-current Assets                          0
        Accounts payable                                  0
        Other accrued liabilities                         0
                                                          
        Liabilities subject to compromise                 0
                                                 ----------
   Net cash provided by (used in)
      operating activities                         (508,000)
                                                 ----------

Investing activities
   Change in other long term asset/liabilities            0
   Retirement of fixed assets                             0
   Net cash provided by investing activities              0

Financing activities
   Distribution to Secured Creditors                      0
                                                 ----------
Increase/decrease in cash                          (508,000)      
                                                 ----------
   Cash at the beginning of Period               12,606,000
                                                 ----------
   Cash at the end of Period                    $12,108,000
                                                 ==========

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.  
(Musicland Bankruptcy News, Issue No. 40; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


REMY WORLDWIDE: Remy Int'l Files Jan. '08 Initial Operating Report
------------------------------------------------------------------
Remy International delivered to the the U.S. Bankruptcy Court for
the District of Delaware an initial monthly operating report,
containing a 13-week cash flow forecast for the week ending
January 11, 2008.  

                       Remy International
                    Domestic - Consolidated
                   13-Week Cash Flow Forecast
                     Ending January 11, 2008  

                                              13-Week Total
                                              -------------
   Beginning Cash & Available Balance           $81,080,000
   Receipts
      Customer Receipts
        Remy, Inc.                              127,209,000
        Electrical Aftermarket                   62,246,000
        Knopf                                    16,000,000
        Locomotive                                6,974,000
                                               ------------
          Total Customer Receipts               212,428,000

      Affiliate Receipts                          3,235,000
      Other Receipts                              1,164,000
      Asset Sales                                 4,279,000
                                               ------------
   Total Receipts                              $221,106,000
                                               ------------
   Disbursements
      Affiliate Trade Disbursements              53,615,000
      Affiliate Financing Disbursements                   -
      Payroll & Payroll Taxes                    22,199,000
      Healthcare & Other Benefits                 2,985,000
      Pension & Post Retirement Plans               627,000
      Material, Component & Core Purchase       119,224,000
      Freight                                    12,307,000
      Contract & Ordinary Course Pros.            5,775,000
      Insurance                                     704,000
      Travel & Reimbursable Expenses              1,443,000
      Utilities                                     748,000
      Property Leases                             1,279,000
      Equipment Leases                              175,000
      Repairs & Maintenance                         196,000
      Customs & Duties                            1,279,000
      Property & Other Misc. Taxes                  218,000
      Other                                       4,319,000
      Cap Ex                                      2,529,000
      Restructuring & Pro. Fees                  27,390,000
      Interest                                   19,409,000
                                               ------------
   Total Disbursements                         $276,422,000

   Net Cash Flows & Financing:
      Net Cash Flows                            (55,316,000)
      DIP/EXIT Term Loan A                       52,000,000
      EXIT Term Loan B                           49,500,000
      PAYDOWN -- Floating Rate Notes           (125,000,000)
      Stock Rights Offering                      85,000,000
      3rd Lien Notes (Conversion)               100,000,000
      PAYDOWN -- 8-5/8% Notes                  (155,000,000)
      Borrowing Base Changes                      1,801,000
                                               ------------
   Ending Cash & Availability Balance           $34,065,000
                                               ============

A full-text copy of Remy's Initial Operating Report and a
breakdown of the weekly cash flow forecast is available for free
at http://researcharchives.com/t/s?24b9

Based in Anderson, Indiana, Remy Worldwide Holdings Inc. acts as a
holding company of all the outstanding capital stock of Remy
International Inc.  Remy International --http://www.remyinc.com/
-- manufactures, remanufactures and distributes Delco Remy brand
heavy-duty systems and Remy brand starters and alternators,
locomotive products and hybrid power technology.  The company also
provides a worldwide components core-exchange service for
automobiles, light trucks, medium and heavy-duty trucks and other
heavy-duty, off-road and industrial applications.  Remy has
operations in the United Kingdom, Mexico and Korea, among others.

The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 8, 2007 (Bankr. D. Del. Cases No. 07-11481 to
07-11509).  Douglas P. Bartner, Esq., Fredric Sosnick, Esq., and
Michael H. Torkin, Esq., at Shearman & Sterling LLP, represent the
Debtors' in their restructuring efforts.  Pauline K. Morgan, Esq.,
Edmon L. Morton, Esq., and Kenneth J. Enos, Esq., at Young Conaway
Stargatt & Taylor, LLP, serve as co-counsels to the Debtors.  The
Debtors' claims agent is Kurtzman Carson Consultants LLC and their
restructuring advisor is AlixPartners, LLC.

At Sept. 30, 2006, Remy Worldwide's balance sheet showed total
assets of $919,736,000 and total liabilities of $1,265,648,000.  
The Debtors' exclusive period to file a plan expires on Feb. 5,
2008.  (Remy Bankruptcy News; Issue No. 5, Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


SOLUTIA INC: Posts $131MM Net Loss in Month Ended Sept. 30, 2007
----------------------------------------------------------------

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

                           ASSETS

Cash                                                 $53,000,000
Trade Receivables, net                               183,000,000
Account Receivables-Unconsolidated Subsidiaries       82,000,000
Inventories                                          180,000,000
Other Current Assets                                  79,000,000
Assets of Discontinued Operations                      7,000,000
                                                  --------------
Total Current Assets                                 584,000,000

Property, Plant and Equipment, net                   649,000,000
Investments in Subsidiaries and Affiliates           687,000,000
Intangible Assets, net                               100,000,000
Other Assets                                          57,000,000
                                                  --------------
Total Assets                                       2,077,000,000
                                                  ==============

               LIABILITIES AND SHAREHOLDERS' DEFICIT

Accounts Payable                                     237,000,000
Short Term Debt                                      922,000,000
Other Current Liabilities                            163,000,000
Liabilities of Discontinued Operations                 5,000,000
                                                  --------------
Total Current Liabilities                          1,327,000,000

Long-Term Debt                                        19,000,000
Other Long-Term Liabilities                          175,000,000
                                                  --------------
Total Liabilities not Subject to Compromise        1,521,000,000

Liabilities Subject to Compromise                  1,962,000,000

Shareholders' Deficit                             (1,406,000,000)
                                                  --------------
Total Liabilities & Shareholders' Deficit         $2,077,000,000
                                                  ==============


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

Total Net Sales                                     $222,000,000
Total Cost Of Goods Sold                             186,000,000
                                                  --------------
Gross Profit                                          36,000,000

Total MAT Expense                                     19,000,000
                                                  --------------
Operating Income (Loss)                               17,000,000

Equity Earnings from Affiliates                                0
Interest Expense, net                                 (9,000,000)
Other Income, net                                      7,000,000

Reorganization Items:
Professional fees                                     (6,000,000)
Employee severance and retention costs                         0
Adjustment to allowed claim amounts                 (139,000,000)
Settlements of prepetition claims                              0
                                                  --------------
                                                    (145,000,000)
                                                  --------------
Loss from continuing operations before taxes        (130,000,000)

Income tax expense (benefit)                           1,000,000

Loss from continuing operations                                0
                                                  --------------
Net Loss                                           ($131,000,000)
                                                  ==============

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 Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP,
in New York, as lead bankruptcy counsel, and David A. Warfield,
Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St.
Louis Missouri, as special counsel.  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 Official Committee of Retirees of Solutia, Inc., et
al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke,
Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne,
LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E.
Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter
Young & Rediker, LLC, in Birmingham, Alabama.

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 Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007.  A hearing to
consider confirmation of the Debtors' Reorganization Plan is
scheduled for Nov. 29, 2007.  

(Solutia Bankruptcy News, Issue No. 105; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).


VESTA INSURANCE: Gordon Gaines Files Sept. 2007 Operating Report
----------------------------------------------------------------

                      J. Gordon Gaines, Inc.
                        Income Statement
                  Month Ended September 30, 2007


Revenue from Total Sales                                     $0
Less:
   Cost of Sales                                              0
                                                   ------------
Gross Profit                                                  0

Less:
   Operating Expenses                                    10,179
                                                   ------------
Net Profit Operations                                   (10,179)

Non-Operating Income (Expenses)
   Interest Earned                                        1,201
   State Tax Refunds                                          0
   Non-operational income                                     
   Sale of Property                                           0
   Stale Dated Checks Written Off                             0
   Miscellaneous Income                                       0
                                                   ------------
Net Profit (Loss)                                       ($8,978)
                                                   ============


                     J. Gordon Gaines, Inc.
          Schedule of Cash Receipts and Disbursements
                 Month Ended September 30, 2007

Cash On Hand (Beginning)                               $585,057

Cash Receipts:
   Accounts Receivable                                        0
   Management Fees                                            0
   Loan Proceeds                                              0
   Sale of Property                                           0
   Interest Earned                                        1,201
   State Tax Refunds                                          0
   Non-operational Income                                     0
   Funding by Texas Receiver                                  0
   Funding under post confirmation                      137,102
   Intercompany insurance operations                          0
   Stale Dated Checks Written Off                             0
   Miscellaneous Income                                       0
                                                   ------------
Total Receipts                                          138,303

Cash Disbursements:
   Business Disbursements Form BA-02(B)                 147,283
                                                   ------------
   Surplus Or Deficit                                    (8,980)
                                                   ------------
   Cash on Hand (End)                                  $576,077
                                                   ============

Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding       
company for a group of insurance companies that primarily offer
property insurance in targeted states.

Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on Aug. 8,
2006 (Bankr. N.D. Ala. Case No. 06-02517).  Eric W. Anderson,
Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, represents the petitioning creditors.  In its schedules of
assets and liabilities, Vesta listed $14,919,938 in total assets
and $214,278,847 in total liabilities.

J. Gordon Gaines Inc. is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers.  The company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts.   In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.

On Aug. 1, 2006, the District Court of Travis County, Texas
entered an order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc.

On Oct. 11, 2006, both Vesta and Gaines filed separate Plans of
Liquidation and Disclosure Statements.  They filed an amended Plan
on Nov. 7, 2006, and a Second Amended Plan on Nov. 10, 2006.  The
Court approved the Disclosure Statements of Vesta and Gaines on
Nov. 10, 2006.  On Dec. 22, 2006, the Court confirmed the Third
Amended Plans of Vesta and Gaines.

Florida Select Insurance Agency Inc., an affiliate, filed for
chapter 11 protection on April 24, 2007 (Bankr. N.D. Ala. Case No.
07-01849).  Rufus Dorsey, IV, Esq., at Parker Hudson Rainer &
Dobbs LLP, represents Florida Select.  FSIA's exclusive period to
file a plan of reorganization expires on Dec. 20, 2007.  (Vesta
Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)   


VESTA INSURANCE: Florida Select Files Sept. 2007 Operating Report
-----------------------------------------------------------------

                   Florida Select Insurance Agency
                        Income Statement
                  Month Ended September 30, 2007

Revenue from Total Sales                                     $0
Less:
   Cost of Sales
                                                   ------------
Gross Profit                                                 $0

Less:
   Operating Expenses                                    18,081
                                                   ------------
Net Profit Operations                                   (18,081)

Non-Operating Income (Expenses)
   Interest Earned                                       12,409
   Vendor Refund                                          1,329
                                                   ------------
Net Profit (Loss)                                       ($4,343)
                                                   ============


                   Florida Select Insurance Agency
            Schedule of Cash Receipts and Disbursements
                   Month Ended September 30, 2007

Cash On Hand (Beginning)                             $3,353,157

Cash Receipts:                                               
   Management Fees                                            0
   Loan Proceeds                                              0
   Sale of Property                                           0
   Interest Earned                                       12,409
   Vendor Refund                                              0
   Miscellaneous Income                                   1,329

Total Receipts                                           13,738

Cash Disbursements:
   Business Disbursements Form BA-02(B)                  18,081
                                                    -----------
   Surplus Or Deficit                                    (4,343)
                                                    -----------
   Cash on Hand (End)                                $3,348,814
                                                   ============

Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding       
company for a group of insurance companies that primarily offer
property insurance in targeted states.

Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on Aug. 8,
2006 (Bankr. N.D. Ala. Case No. 06-02517).  Eric W. Anderson,
Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, represents the petitioning creditors.  In its schedules of
assets and liabilities, Vesta listed $14,919,938 in total assets
and $214,278,847 in total liabilities.

J. Gordon Gaines Inc. is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers.  The company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts.   In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.

On Aug. 1, 2006, the District Court of Travis County, Texas
entered an order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc.

On Oct. 11, 2006, both Vesta and Gaines filed separate Plans of
Liquidation and Disclosure Statements.  They filed an amended Plan
on Nov. 7, 2006, and a Second Amended Plan on Nov. 10, 2006.  The
Court approved the Disclosure Statements of Vesta and Gaines on
Nov. 10, 2006.  On Dec. 22, 2006, the Court confirmed the Third
Amended Plans of Vesta and Gaines.

Florida Select Insurance Agency Inc., an affiliate, filed for
chapter 11 protection on April 24, 2007 (Bankr. N.D. Ala. Case No.
07-01849).  Rufus Dorsey, IV, Esq., at Parker Hudson Rainer &
Dobbs LLP, represents Florida Select.  FSIA's exclusive period to
file a plan of reorganization expires on Dec. 20, 2007.  (Vesta
Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)   

                             *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
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On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts.  The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                             *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy,
Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva,
Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez,
Tara Marie A. Martin, Joseph Medel C. Martirez, Sheena R. Jusay,
and Peter A. Chapman, Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9474.

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                    *** End of Transmission ***