/raid1/www/Hosts/bankrupt/TCR_Public/071110.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 10, 2007, Vol. 11, No. 267
Headlines
ADVANCED MARKETING: Posts $7.4 Mil. in Month Ended June 30, 2007
ADVANCED MARKETING: Incurs $2.2 Mil. Net Loss in July 31, 2007
AMERICAN HOME: Files Supplement to Initial Monthly Report
DELPHI CORPORATION: Posts $794 Million Net Loss in Sept. 30, 2007
DURA AUTOMOTIVE: Incurs $20,505,000 Net Loss in September 2007
FEDERAL-MOGUL: Posts $12.1 Million Net Loss in September 2007
INTERSTATE BAKERIES: Incurs $7,699,993 Net Loss in September 2007
MORTGAGE LENDERS: Incurs $964,328 Net Loss in June 1-30, 2007
MORTGAGE LENDERS: Posts $2,738,168 Net Loss in Month Ended July 31
MORTGAGE LENDERS: Incurs $684,328 Net Loss in August 2007
PACIFIC LUMBER: Scotia Dev't Files September 2007 Operating Report
PACIFIC LUMBER: Scotia Pacific Files September 2007 Monthly Repor
*********
ADVANCED MARKETING: Posts $7.4 Mil. in Month Ended June 30, 2007
----------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates
filed with the Court a copy of their Monthly Operating Report
ending June 30, 2007, containing a Balance Sheet and a Statement
of Operations as of June 8, 2007.
Curt Smith, chief executive officer and chief financial officer
of AMS, reports that the company has disbursed a total of
$2,024,342 for calculating the United States Trustee's quarterly
fees.
According to Mr. Smith, the Debtors' reorganization costs through
June 30 are estimated at $16,340,605, including losses on the
sale of their assets to Baker and Taylor, Inc.
AMS Corp.
Unaudited Balance Sheet
As of June 8, 2007
ASSETS
Current Assets
Cash and Cash Equivalents $431,980
Short-term Investments 40,964,319
Accounts Receivable, Net (1,532,250)
Vendor & Misc. Receivables 14,972,598
Intercompany Receivables 6,314,970
----------
Inventory 28,942,080
Freight on Inventory 556,522
Inventory in Process, in Transit 0
Inventory Reserves (9,136,332)
----------
Inventory, Net 20,362,271
----------
Deferred Income Tax -
Income Tax Receivable -
Prepaid Expenses 6,490,963
----------
Total Current Assets 88,004,851
----------
Long-Term Investments 15,921
Goodwill & Other Assets 11,873,152
-----------
TOTAL ASSETS $99,893,924
===========
LIABILITIES & STOCKHOLDER EQUITY
Current Liabilities:
Accounts Payable $502,622
Accrued Liabilities 11,852,714
Income Taxes Payable 164,944
Intercompany Payables 0
Short-term Debt 0
-----------
TOTAL CURRENT LIABILITIES 12,520,280
-----------
Long Term Liabilities 158,035,883
-----------
TOTAL LIABILITIES $170,556,163
===========
STOCKHOLDERS' EQUITY
Common Stock @ Par Value 23,350
Additional Paid-in Capital 37,196,580
Common Stock Dividend (4,213,583)
Deferred Compensation 0
Retained Earnings - Prior Year (56,406,906)
Retained Earnings - Current Year (25,119,933)
Cumulative Other Comp. Income (585,376)
Treasury Stock (21,556,370)
-----------
TOTAL STOCKHOLDERS' EQUITY (70,662,238)
-----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $99,893,924
===========
AMS Corp.
Unaudited Statement of Operations
For the period ended June 8, 2007
GROSS SALES
Invoiced Amount $531,786
Stickering Revenue -
Service & Fee Revenue -
Interco Revenue -
Total Sales Returns -
Sales Returns Provision -
Unprocessed Sales Returns -
----------
Sales Less Returns Prov. 531,786
----------
Total Sales Deductions -
----------
NET SALES $531,786
==========
COST OF NET SALES
Standard Cost of Sales $1,720,461
Interco Cost of Sales -
Standard Cost of Returns (34,850)
Standard Cost of Returns Provision -
Standard Cost of Returns - Unprocessed -
Purchase Variance, Revaluation 604
Return to Publisher Variance (3,536)
Freight In Costs of Sales 4,187
Freight - AGL 6,977
Freight Customer Returns 2,293
Freight -Return to Publisher 21,586
Freight Warehouse Transfer 4,517
Quantity Adjustments 4,137,063
Markdown Expense -
Publisher Incentive -
Publisher Account Settlements -
Other Costs of Sales -
----------
Total Cost of Sales 5,859,301
----------
GROSS PROFIT ($5,327,514)
==========
VARIABLE EXPENSES
Freight Sales Shipments $15,777
Freight - Special Shipments -
Shipping Supplies and Service 74,033
Payroll DC operations 168,955
Distribution Fees -
----------
Total Variable Expenses 258,765
----------
VARIABLE PROFIT MARGIN (5,586,280)
----------
FIXED EXPENSE
Payroll (excl. DC Oper.) 691,724
Travel & Entertainment 9,341
Professional Services 18,002
Information Services (20,520)
Office Equipment & Supplies 2,818
Telephone Expense (954)
Facility Occupancy 252,313
General Insurance 30,000
Depreciation -
Uncollectible Accounts -
Customer Service 1,749
Promotion Expense -
Express Mail & Postage (13,497)
Training & Education -
Exchange Gain/Loss -
Miscellaneous Expense 102,530
Shareholder's Relations 6,325
Co-op Advertising Exp/Inc -
Miscellaneous Income (4)
Warehouse Equipment 12,095
----------
Total Fixed Expenses 1,091,921
----------
OPERATING INCOME: (6,678,201)
----------
Interest Expense -
Interest Income (146,666)
Equity in Inc/Loss of Affiliates -
Other Non-operating Expenses 938,796
----------
NON-OPERATING INCOME 792,130
----------
INCOME BEFORE INC TAX (7,470,330)
Tax Provision (5,706)
----------
NET INCOME (LOSS) ($7,476,036)
==========
Based in San Diego, Calif., Advanced Marketing Services, Inc. --
http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution and publishing services, currently
primarily to the book industry. The company has operations in the
U.S., Mexico, the United Kingdom and Australia and employs
approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group Incorporated
and Publishers Group West Incorporated filed for chapter 11
protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480
through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron,
Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP,
represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark
D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton
& Finger, P.A., represent the Debtors as Local Counsel.
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors. In schedules filed with the Court, Advanced
Marketing disclosed total assets of $213,384,791 and total debts
of $216,608,357. Publishers Group West disclosed total assets of
$39,699,451 and total debts of $83,272,493. Publishers Group Inc.
disclosed zero assets but $41,514,348 in liabilities.
On Aug. 24, 2007, the Debtors' exclusive period to file a chapter
11 plan expired. On the same date, the Debtors and Creditors
Committee filed a Plan & Disclosure Statement. On September 26,
the Court approved the adequacy of the Disclosure Statement
explaining the Second Amended Plan. The hearing to consider
confirmation of the Plan is set on Nov. 15, 2007. (Advanced
Marketing Bankruptcy News, Issue No. 22; Bankruptcy Creditors'
Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000).
ADVANCED MARKETING: Incurs $2.2 Mil. Net Loss in July 31, 2007
--------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates
delivered to the Court a copy of their Monthly Operating Report
ending July 31, 2007, containing a Balance Sheet as of July 8,
2007, and a Statement of Operations for the period ended July 7,
2007.
Curt Smith, chief executive officer and chief financial officer
of AMS, reports that the company has disbursed a total of
$1,898,205 for calculating the United States Trustee's quarterly
fees.
According to Mr. Smith, the Debtors' reorganization costs through
June 30 are estimated at $16,951,144, including losses on the
sale of their assets to Baker and Taylor, Inc.
AMS Corp.
Unaudited Balance Sheet
As of July 8, 2007
ASSETS
Current Assets
Cash and Cash Equivalents $375,375
Short-term Investments 40,410,170
Accounts Receivable, Net (1,248,567)
Vendor & Misc. Receivables 15,098,476
Intercompany Receivables 5,602,851
----------
Inventory 21,551,155
Freight on Inventory 556,522
Inventory in Process, in Transit -
Inventory Reserves (9,134,090)
----------
Inventory, Net 12,973,588
----------
Deferred Income Tax -
Income Tax Receivable -
Prepaid Expenses 4,882,704
----------
Total Current Assets 78,094,597
----------
PROPERTY & EQUIPMENT
Leasehold Improvements -
Office Furniture & Equipment -
Warehouse Equipment -
Autos -
----------
Total Property & Equipment -
Accumulated Depreciation -
----------
Net Property & Equipment -
Long-Term Investments -
Goodwill & Other Assets 11,856,210
-----------
TOTAL ASSETS $89,950,807
===========
LIABILITIES & STOCKHOLDER EQUITY
Current Liabilities:
Accounts Payable $970,370
Accrued Liabilities 12,508,865
Income Taxes Payable 164,944
Intercompany Payables -
Short-term Debt -
-----------
TOTAL CURRENT LIABILITIES 13,644,179
-----------
Long Term Liabilities 149,286,857
-----------
TOTAL LIABILITIES $162,931,036
===========
STOCKHOLDERS' EQUITY
Common Stock @ Par Value 23,350
Additional Paid-in Capital 37,196,580
Common Stock Dividend (4,213,583)
Deferred Compensation -
Retained Earnings - Prior Year (56,439,800)
Retained Earnings - Current Year (27,397,109)
Cumulative Other Comp. Income (593,297)
Treasury Stock (21,556,370)
-----------
TOTAL STOCKHOLDERS' EQUITY (72,980,229)
-----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $89,950,807
===========
AMS Corp.
Unaudited Statement of Operations
For the period ended July 7, 2007
GROSS SALES
Invoiced Amount $447,715
Stickering Revenue -
Service & Fee Revenue -
Interco Revenue -
Total Sales Returns -
Sales Returns Provision -
Unprocessed Sales Returns -
----------
Sales Less Returns Prov. 447,715
----------
SALES DEDUCTIONS
Cash Discount Provision -
New Store Allowance -
Customer Rebates -
Co-op Allowance -
Misc. Allowance & Adjustment -
Sales Commissions -
----------
Total Sales Deductions -
----------
NET SALES $447,715
==========
COST OF NET SALES
Standard Cost of Sales $1,251,955
Interco Cost of Sales -
Standard Cost of Returns (129,540)
Standard Cost of Returns Provision -
Standard Cost of Returns - Unprocessed -
Purchase Variance, Revaluation 11,134
Return to Publisher Variance (5,932)
Freight In Costs of Sales (9)
Freight - AGL (109,727)
Freight Customer Returns (1,424)
Freight -Return to Publisher 1,623
Freight Warehouse Transfer -
Quantity Adjustments (135,659)
Markdown Expense -
Publisher Incentive -
Publisher Account Settlements (58,200)
Other Costs of Sales -
----------
Total Cost of Sales 824,220
----------
GROSS PROFIT ($376,506)
----------
VARIABLE EXPENSES
Freight Sales Shipments ($17,596)
Freight - Special Shipments -
Shipping Supplies and Service 40,381
Payroll DC operations 455,815
Distribution Fees -
----------
Total Variable Expenses 478,601
----------
VARIABLE PROFIT MARGIN (855,107)
----------
FIXED EXPENSE
Payroll (excl. DC Oper.) 776,889
Travel & Entertainment 2,750
Professional Services 27,698
Information Services 2,237
Office Equipment & Supplies 10,655
Telephone Expense 1,309
Facility Occupancy 116,082
General Insurance -
Depreciation -
Uncollectible Accounts -
Customer Service 1,600
Promotion Expense -
Express Mail & Postage 279
Training & Education -
Exchange Gain/Loss -
Miscellaneous Expense 8,897
Shareholder's Relations 1,250
Co-op Advertising Exp/Inc -
Miscellaneous Income (13,080)
Warehouse Equipment 14,627
----------
Total Fixed Expenses 951,193
----------
OPERATING INCOME: (1,806,300)
----------
Interest Expense -
Interest Income (140,216)
Equity in Inc/Loss of Affiliates -
Other Non-operating Expenses 610,539
----------
NON-OPERATING INCOME 470,324
----------
INCOME BEFORE INC TAX (2,276,624)
Tax Provision 552
----------
NET INCOME ($2,277,175)
==========
Advanced Marketing Services, Inc.
(Excluding Publishers Group West Incorporated)
Statement of Cash Flows
From July 6 to 27, 2007
CASH RECEIPTS
B&T Purchase Price -
Reimbursement under B&T TSA -
Inventory $232,485
CIA inventory -
Vendor accounts receivable -
Prepaid expenses -
CSV Life Insurance -
Foreign Subs -
Standby L/C Expirations -
WF Foothill Fee Reserve -
Interest Income 147,386
Other 171,912
----------
Total Cash Receipts $551,783
==========
CASH DISBURSEMENTS
Publisher payments -
Payroll & health insurance $396,276
KERP 376,050
MIP -
Insurance 66,492
Rent-facilities 48,364
Freight 66,134
Shipping Supplies 92,366
Utilities 21,946
IT Expenses 51,228
Travel 12,458
Professional fees 700,653
US Trustee Fees 10,000
Office equipment and supplies -
Communications 8,518
Warehouse equipment -
Directors' fees -
Miscellaneous 38,336
Post-petition A/P -
----------
Total Disbursements 1,888,819
----------
Net Operating Cash Outflow ($1,337,036)
==========
Based in San Diego, Calif., Advanced Marketing Services, Inc. --
http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution and publishing services, currently
primarily to the book industry. The company has operations in the
U.S., Mexico, the United Kingdom and Australia and employs
approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group Incorporated
and Publishers Group West Incorporated filed for chapter 11
protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480
through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron,
Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP,
represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark
D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton
& Finger, P.A., represent the Debtors as Local Counsel.
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors. In schedules filed with the Court, Advanced
Marketing disclosed total assets of $213,384,791 and total debts
of $216,608,357. Publishers Group West disclosed total assets of
$39,699,451 and total debts of $83,272,493. Publishers Group Inc.
disclosed zero assets but $41,514,348 in liabilities.
On Aug. 24, 2007, the Debtors' exclusive period to file a chapter
11 plan expired. On the same date, the Debtors and Creditors
Committee filed a Plan & Disclosure Statement. On September 26,
the Court approved the adequacy of the Disclosure Statement
explaining the Second Amended Plan. The hearing to consider
confirmation of the Plan is set on Nov. 15, 2007. (Advanced
Marketing Bankruptcy News, Issue No. 22; Bankruptcy Creditors'
Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000).
AMERICAN HOME: Files Supplement to Initial Monthly Report
---------------------------------------------------------
The Debtors filed a second supplement to their initial operating
report to amend its schedule of retainers paid to retained
professionals:
American Home Mortgage Holdings, Inc.
Schedule of Retainers Paid to
Debtors' Retained Professionals
Amount
Applied
As of
Professional Amount Paid 8/06/07 Balance
------------ ----------- ------- -------
Cadwalader, Wickersham $2,000,000 $940,863 $1,059,137
Kekst & Company, Inc. 50,000 45,282 4,718
Kroll Zolfo Cooper LLC 500,000 -- --
Kroll Zolfo Cooper LLC 250,000 184,681 565,319
Milestone Advisors LLC 575,000 64,973 10,027
Young Conaway Stargatt 400,000 -- --
Young Conaway Stargatt 400,000 536,112 263,888
--------- --------- ---------
Total $4,175,000 $1,771,910 $1,903,090
========= ========= =========
Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.
American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors has selected Hahn & Hessen LLP as
its counsel. As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000. The Debtors' exclusive period to
file a plan expires on Dec. 4, 2007. (American Home Bankruptcy
News, Issue No. 14, Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
DELPHI CORPORATION: Posts $794 Million Net Loss in Sept. 30, 2007
-----------------------------------------------------------------
Delphi Corporation, et al.
Unaudited Consolidated Balance Sheet
As of September 30, 2007
(In Millions)
ASSETS
Current assets:
Cash and cash equivalents $107
Restricted cash 123
Accounts receivable, net:
General Motors and affiliates 1,628
Other third parties 885
Non-Debtor affiliates 258
Notes receivable from non-Debtor affiliates 289
Inventories, net:
Productive material, work-in-process & supplies 854
Finished goods 260
Other current assets 408
--------
TOTAL CURRENT ASSETS 4,812
Long-term assets:
Property, net 1,796
Investment in affiliates 372
Investments in non-Debtor affiliates 4,026
Goodwill 152
Other intangible assets 27
Other 547
--------
TOTAL LONG-TERM ASSETS 6,920
--------
TOTAL ASSETS $11,732
========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities not subject to compromise:
Debtor-in-possession financing $3,226
Accounts payable 1,266
Accounts payable to non-Debtor affiliates 707
Accrued liabilities 1,446
Notes payable to non-Debtor affiliates 65
--------
TOTAL CURRENT LIABILITIES 6,710
Long-term liabilities not subject to compromise:
Employee benefit plan obligations and other 1,043
Liabilities subject to compromise 16,992
--------
TOTAL LIABILITIES 24,745
Stockholders' deficit:
TOTAL STOCKHOLDERS' DEFICIT 13,013
--------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $11,732
========
Delphi Corporation, et al.
Unaudited Consolidated Statement of Operations
Month Ended September 30, 2007
(In Millions)
Net sales:
General Motors and affiliates $644
Other customers 440
Non-Debtor affiliates 61
--------
Total net sales 1,145
--------
Operating expenses:
Cost of sales 1,214
U.S. employee workforce transition program charges 223
Long-lived asset impairment charges -
Depreciation and amortization 40
Selling, general and administrative 86
Securities & ERISA litigation charge -
--------
Total operating expenses 1,563
--------
Operating loss (418)
Interest expense (396)
Loss on extinguishment of debt -
Other (expense) income, net 33
Reorganization items (8)
Income tax benefit (expense) (5)
Equity income from non-consolidated affiliates 3
Equity income from non-Debtor affiliates (3)
--------
NET LOSS ($794)
========
Delphi Corporation, et al.
Unaudited Consolidated Statement of Cash Flows
Month Ended September 30, 2007
(In Millions)
Cash flows from operating activities:
Net loss ($794)
Adjustments to reconcile net loss
to net cash provided by operating activities:
Depreciation and amortization 40
Deferred income taxes (2)
Pension and other postretirement benefit expenses 62
Equity income from unconsolidated affiliates 3
Equity income from non-Debtor affiliates (3)
Reorganization items 8
U.S. employee workforce transition program charges 223
Changes in operating assets and liabilities:
Accounts receivable, net 61
Inventories, net (24)
Other assets (4)
Accounts payable, accrued and other long-term debts 441
U.S. employee workforce transition program payments (12)
Other postretirement benefit payments (20)
Pension contributions (6)
Payments for reorganization items (9)
Other 22
--------
Net cash used in operating activities (14)
Cash flows from investing activities:
Capital expenditures (18)
Proceeds from divestitures 62
Decrease in restricted cash 16
Other (15)
--------
Net cash used in investing activities 45
Cash flows from financing activities:
Net proceeds from DIP facility 120
Repayments on borrowings from non-Debtor affiliates (64)
--------
Net cash used in financing activities 56
--------
Increase in cash and cash equivalents 87
Cash and cash equivalents at beginning of period 20
--------
Cash and cash equivalents at end of period $107
========
Based in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) --
http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000
in total assets and $23,851,000,000 in total debts.
The Debtors' exclusive plan-filing period expires on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan.
(Delphi Bankruptcy News, Issue No. 94; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
DURA AUTOMOTIVE: Incurs $20,505,000 Net Loss in September 2007
--------------------------------------------------------------
Dura Automotive Systems, Inc., and Subsidiaries
Condensed Unaudited Consolidated Balance Sheet
As of September 30, 2007
(Dollars in thousands)
ASSETS
Current assets:
Cash and cash equivalent s $6,099
Accounts receivable, net
Trade 114,233
Other 9,392
Non-Debtor subsidiaries 29,964
Inventories 47,900
Other current assets 33,866
----------
Total current assets 241,454
Property, plant and equipment, net 133,884
Goodwill, net 178,611
Notes receivable from Non-Debtors subsidiaries 188,751
Investment in Non-Debtors subsidiaries 790,647
Other noncurrent assets 17,069
----------
Total Assets $1,550,416
==========
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
Debtors-in-possession financing $119,936
Accounts payable 42,629
Accounts payable to Non-Debtors subsidiaries 1,821
Accrued Liabilities 71,131
----------
Total current liabilities 235,517
Long-term Liabilities:
Notes Payable to Non-Debtors subsidiaries 9,194
Other noncurrent liabilities 57,762
Liabilities Subject to Compromise 1,312,201
----------
Total Liabilities 1,614,674
Stockholders' Investment (64,258)
----------
Total Liabilities and Stockho1ders' Investment $1,550,416
==========
Dura Automotive Systems, Inc., and Subsidiaries
Condensed Unaudited Consolidated Statement of Operations
For the Five Weeks Ended September 30, 2007
(Dollars in thousands)
Total sales $73,674
Cost of sales 71,899
----------
Gross (loss) profit 1,775
Selling, general and administrative expenses 6,017
Facility consolidation, asset impairment
and other charges 277
Amortization expense 19
----------
Operating (loss) income (4,538)
Interest expense, net 3,484
----------
Loss before reorganization items and income taxes (8,022)
Reorganization items 3,650
----------
Loss before income taxes (11,672)
Provision for income taxes (832)
Loss from continuing operations (10,840)
Loss from discontinued operations 9,665
----------
Net Income (Loss) ($20,505)
==========
Dura Automotive Systems, Inc., and Subsidiaries
Condensed Unaudited Consolidated Statements of Cash Flows
For the Five Weeks Ended Sept. 30, 2007
(Dollars in thousands)
Operating Activities:
Net Income (loss) from continuing operations ($10,840)
Adjustments to reconcile net loss to net cash used
in operations activities:
Depreciation, amortization & asset impairment 2,194
Amortization of deferred financing fees 708
(Gain)/Loss on sale of assets 72
Reorganization items 3,650
Changes in other operating items:
Accounts receivable (6,748)
Inventories (1,280)
Other current assets 1,559
Noncurrent assets (233)
Accounts payable (562)
Accrued liabilities (19,801)
Noncurrent liabilities (715)
Current intercompany transactions (552)
----------
Net cash provided by operating activities (32,548)
Investing Activities:
Purchases of property, plant & equipment (1,512)
----------
Net cash (used in) provided by
investing activities (1,512)
Financing Activities:
DIP Borrowings
(129,194)
Payments on prepetition debt 304
----------
Net cash used in financing activities (128,890)
----------
Net change in cash & cash equivalents
from continuing operations (162,950)
Cash Flows from discontinued operations
Proceeds from sale of Atwood 155,700
----------
Net change in cash & cash equivalents
from discontinued operations 155,700
Cash & Cash Equivalent, Beginning Balance 13,349
----------
Cash & Cash Equivalent, Ending Balance $6,099
==========
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies, structural
door modules and exterior trim systems for the global automotive
industry. The company is also a supplier of similar products to
the recreation vehicle and specialty vehicle industries. DURA
sells its automotive products to North American, Japanese and
European original equipment manufacturers and other automotive
suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc
Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine
Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the
Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel
J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards
Layton & Finger, P.A. Attorneys are the Debtors' co-counsel.
Baker & McKenzie acts as the Debtors' special counsel. Togut,
Segal & Segal LLP is the Debtors' conflicts counsel. Miller
Buckfire & Co., LLC is the Debtors' investment banker. Glass &
Associates Inc., gives financial advice to the Debtor. Kurtzman
Carson Consultants LLC handles the notice, claims and balloting
for the Debtors and Brunswick Group LLC acts as their Corporate
Communications Consultants for the Debtors. As of July 2, 2006,
the Debtor had $1,993,178,000 in total assets and $1,730,758,000
in total liabilities.
The Debtors' exclusive plan-filing period expired on Sept. 30,
2007. On Aug. 22, 2007, the Debtors' filed their Plan of
Reorganization and the Disclosure Statement explaining that Plan
was approved on Oct. 3, 2007. The hearing to consider
confirmation of the plan is set for Nov. 26, 2007. (Dura
Automotive Bankruptcy News, Issue No. 35 Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
FEDERAL-MOGUL: Posts $12.1 Million Net Loss in September 2007
-------------------------------------------------------------
Federal-Mogul Global, Inc., et al.
Unaudited Balance Sheet
As of September 30, 2007
(In millions)
Assets
Cash and equivalents $86.6
Accounts receivable 615.6
Inventories 403.0
Deferred taxes 192.4
Prepaid expenses and other current assets 119.3
--------
Total current assets 1,417.0
Summary of Unpaid Postpetition Debits 28.6
Intercompany Loans Receivable (Payable) 1,686.7
--------
Intercompany Balances 1,715.3
Property, plant and equipment 754.9
Goodwill 930.5
Other intangible assets 338.8
Insurance recoverable 879.5
Other non-current assets 523.6
--------
Total Assets $6,559.5
========
Liabilities and Shareholders' Equity
Short-term debt $782.9
Accounts payable 245.4
Accrued compensation 65.8
Restructuring and rationalization reserves 17.8
Current portion of asbestos liability -
Interest payable 4.0
Other accrued liabilities 270.9
--------
Total current liabilities 1,386.8
Long-term debt -
Post-employment benefits 680.4
Other accrued liabilities 545.9
Liabilities subject to compromise 5,459.0
Shareholders' equity:
Preferred stock 1,050.6
Common stock 662.1
Additional paid-in capital 7,998.4
Accumulated deficit (11,418.3)
Accumulated other comprehensive income 194.7
Other -
--------
Total Shareholders' Equity (1,512.5)
--------
Total Liabilities and Shareholders' Equity $6,559.5
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Operations
For the Month Ended September 30, 2007
(In millions)
Net sales $249.3
Cost of products sold 200.0
--------
Gross margin 49.3
Selling, general & administrative expenses (41.2)
Amortization (1.2)
Reorganization items (4.8)
Interest income (expense), net (14.7)
Other income (expense), net 23.2
--------
Earnings before Income Taxes 10.7
Income Tax (Expense) Benefit 1.4
--------
Earnings before cumulative effect of change
in accounting principle 12.1
--------
Net Earnings (loss) $12.1
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Cash Flows
For the Month Ended September 30, 2007
(In millions)
Cash Provided From (Used By) Operating Activities:
Net earning (loss) $12.1
Adjustments to reconcile net earnings (loss) to net cash:
Depreciation and amortization 12.2
Adjustment of assets held for sale and
other long-lived assets to fair value 2.2
Asbestos charge -
Summary of unpaid postpetition debits -
Cumulative effect of change in acctg. principle -
Change in post-employment benefits (44.7)
Decrease (increase) in accounts receivable (15.9)
Decrease (increase) in inventories (2.4)
Increase (decrease) in accounts payable 5.6
Change in other assets & other liabilities (22.9)
Change in restructuring charge -
Refunds (payments) against asbestos liability -
--------
Net Cash Provided From Operating Activities (53.7)
Cash Provided From (Used By) Investing Activities:
Expenditures for property, plant & equipment (1.9)
Proceeds from sale of property, plant & equipment -
Proceeds from sale of businesses 14.0
Business acquisitions, net of cash acquired -
Other -
--------
Net Cash Provided From (Used By) Investing Activities 12.1
Cash Provided From (Used By) Financing Activities:
Increase (decrease) in debt 76.0
Sale of accounts receivable under securitization -
Dividends -
Other -
--------
Net Cash Provided From Financing Activities 76.0
Increase (Decrease) in Cash and Equivalents 34.3
Cash and equivalents at beginning of period 52.3
--------
Cash and equivalents at end of period $86.6
========
Based in Southfield, Michigan, Federal-Mogul Corporation --
http://www.federal-mogul.com/-- is an automotive parts company
with worldwide revenue of some $6 billion. Federal-Mogul also has
operations in Mexico and the Asia Pacific Region, which includes,
Malaysia, Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
their creditors, they listed $10.15 billion in assets and $8.86
billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate,
Turner & Newall, is based at Dudley Hill, Bradford. Peter D.
Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D.
Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at
The Bayard Firm represent the Official Committee of Unsecured
Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan. On July 28, 2004, the
District Court approved the Disclosure Statement. The estimation
hearing began on June 14, 2005. The Debtors submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007. The confirmation hearing started on June 18, 2007.
(Federal-Mogul Bankruptcy News, Issue No. 151; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
INTERSTATE BAKERIES: Incurs $7,699,993 Net Loss in September 2007
-----------------------------------------------------------------
Interstate Bakeries Corporation and Subsidiaries
Unaudited Consolidated Monthly Operating Report
Four Weeks Ended September, 2007
REVENUE:
Gross Income $220,794,820
Less Cost of Goods Sold
Ingredients, Packaging & Outside Purchasing 55,480,758
Direct & Indirect Labor 39,430,591
Overhead & Production Administration 12,325,614
-------------
Total Cost of Goods Sold 107,236,963
-------------
Gross Profit 113,557,857
-------------
OPERATING EXPENSES
Owner-Draws/Salaries -
Selling & Delivery Employee Salaries 51,168,360
Advertising and Marketing 1,973,449
Insurance (Property, Casualty, & Medical 12,224,071
Payroll Taxes 4,428,228
Lease and Rent 2,934,533
Telephone and Utilities 1,122,670
Corporate Expense (Including Salaries 7,498,000
Other Expenses 28,457,611
-------------
Total Operating Expenses 109,806,922
-------------
EBITDA 3,750,935
Restructuring & Reorganization Charges 2,789,732
Depreciation and Amortization 5,111,616
Abandonment (16,104)
Property & Equipment Impairment -
Other( Income)/Expense 6,095
Gain/Loss Sale of Property -
Interest Expense 3,693,512
-------------
Operating Income (Loss) (7,833,916)
Income Tax Expense (Benefit) (133,923)
-------------
NET Income (Loss) (7,699,993)
=============
CURRENT ASSETS $144,249,639
Accounts Receivable at end of period 140,750,640
Increase (Dec.) in Accounts Receivable (3,498,999)
Inventory at end of period 61,774,980
Increase (Decrease) in Inventory for period (1,880,591)
Cash at end of period 70,584,887
Increase (Decrease) in Cash for period 1,868,501
Restricted Cash 18,163,050
Increase (Dec.) in Restricted Cash for period 456,397
LIABILITIES
Increase (Decrease) in Liabilities
Not Subject to Compromise (1,014,585)
Increase (Decrease) in Liabilities 22,190
Subject to Compromise
Taxes payable:
Federal Payroll Taxes 4,334,235
State/Local Payroll Taxes 2,808,266
State Sales Taxes 605,761
Real Estate and Personal Property Taxes 7,901,480
Other 3,359,021
-------------
Total Taxes Payable 19,008,763
=============
Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh-baked
bread and sweet goods, under various national brand names,
including Wonder(R), Baker's Inn(R), Merita(R), Hostess(R) and
Drake's(R). Currently, IBC employs more than 25,000 people and
operates 45 bakeries, as well as approximately 800 distribution
centers and approximately 800 bakery outlets throughout the
country.
The company and seven of its debtor-affiliates filed for chapter
11 protection on Sept. 22, 2004 (Bankr. W.D. Mo. Case No. 04-
45814). J. Eric Ivester, Esq., and Samuel S. Ory, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP represent the Debtors in
their restructuring efforts. When the Debtors filed for
protection from their creditors, they listed $1,626,425,000 in
total assets and $1,321,713,000 (excluding the $100,000,000 issue
of 6% senior subordinated convertible notes due Aug. 15, 2014) in
total debts. The Debtors' exclusive period to file a chapter 11
plan has recently been extended to Nov. 8, 2007.
(Interstate Bakeries Bankruptcy News, Issue No. 77; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
MORTGAGE LENDERS: Incurs $964,328 Net Loss in June 1-30, 2007
-------------------------------------------------------------
Mortgage Lenders Network USA, Inc.
Balance Sheet
As of June 30, 2007
Assets:
Cash and Cash Equivalents $15,834,336
Mortgage loans held for sale 739,165
Portfolio loans 0
Allowance for loan losses 0
Capitalized Mortgage Servicing rights, net 0
Retained interests in securitization,
at fair value 0
Furniture, fixtures, equipment,
an software, net 3,187,970
Deferred Costs 0
Principal & Interest Advances 0
Interest in subsidiaries 0
Other Assets 11,566,080
------------
Total Assets $31,327,551
============
Liabilities:
Accounts Payable prepetition $14,473,514
Accounts Payable postpetition 114,191
Accrued Expenses - Payroll 981,314
Accrued Expenses - Other 15,509,179
Warehouse Borrowings 22,987,992
Convertible Debt 1,500,000
Servicing & Working Capital Advances 54,408,435
Capital Lease Liability 6,258
Other liabilities 31,249,341
------------
Total Liabilities 141,230,225
Stockholders' Equity:
Common Stock 625,000
Additional Paid-In Capital 1,829,770
Retained Earnings (112,357,444)
------------
Total Stockholders' Equity (109,902,674)
------------
Total Debts & Stockholders' Equity $31,327,551
============
Mortgage Lenders Network USA, Inc.
Schedule of Cash Receipts and Disbursements
Month Ended June 30, 2007
Cash - Beginning of Month $5,918,908
Receipts:
Net Servicing Inflows 747,479
Warehouse and Loan Sale Inflows 3,255,242
Sale of Fixed Assets 18,000
Sale of Other Assets 0
Other Inflows 69,902
Transfers from Cash Collateral 0
Total Receipts 4,090,623
Disbursements:
Net Payroll 353,285
Payroll Taxes 60,892
Medical Coverage Sub/ FSA Witholding 12,822
Operating Expenses 948,829
Rent 0
Utilities 0
Insurance 0
Administrative & Selling 0
Other 0
Professional Fees Escrow Account 0
Professional Fees Paid 0
U.S. Trustee Fees 7,750
DIP Fees 0
Transfers to Cash Collateral 0
------------
Total Disbursements 1,383,578
------------
Net Cash Flow 2,707,045
------------
Cash - End of Month $8,625,953
============
Mortgage Lenders Network USA, Inc.
Income Statement
Month Ended June 30, 2007
Revenue
Gain on Sale - Subprime $812,805
Gain on Sale - SRP/MBS 0
Mortgage origination income 0
Net Warehouse interest income 0
Servicing income, net (1,240)
Loss on investment in MLN Depository 0
Other Income 544,977
------------
Total Revenues $1,356,542
------------
Expenses
Salaries $132,187
Overtime/Temp Help 0
Bonus/Incentives 0
Benefits 24,457
Rent Expense 176,187
Telephone 7,745
Repairs & Maintenances 11,955
Office & Supplies Expense 11,603
Postage/Express Mail 266
Service Bureau 147,255
Consulting Fees 498,840
Insurance 0
Loan Loss/Foreclosure Exp. 57,462
Appraisal/Credit Expenses (60)
Travel & Entertainment 5,789
Meetings/Seminars/Education 760
Membership Fes/Dues/Filings 4,435
Advertising - Other 0
Interest Expense - Other 0
Legal/Regulatory Expese 1,219,042
Miscellaneous Expenses 17,005
------------
Total Expenses Before Depreciation 2,314,926
Depreciation Expense 0
------------
Net Profit Before Reorganization Items (958,384)
Reorganization Items
Professional Fees 5,943
------------
Total Reorganization Items 5,943
Income Taxes 0
------------
Net Income (Loss) ($964,328)
============
Middletown, Conn.-based Mortgage Lenders Network USA Inc. --
http://www.mlnusa.com/-- is a privately held company offering a
full range of Alt-A/Non-Conforming and Conforming loan products
through its retail and wholesale channels. The company filed for
chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No.
07-10146). Pachulski Stang Ziehl & Jones LLP represents the
Debtor. Blank Rome LLP represents the Official Committee of
Unsecured Creditors. In the Debtor's schedules of assets and
liabilities filed with the Court, it disclosed total assets of
$464,847,213 and total debts of $556,459,464. The Debtor's
exclusive period to file a chapter 11 plan of reorganization is
set to expire on Jan. 2, 2008.
(Mortgage Lenders Bankruptcy News, Issue No. 19; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-
7000).
MORTGAGE LENDERS: Posts $2,738,168 Net Loss in Month Ended July 31
------------------------------------------------------------------
Mortgage Lenders Network USA, Inc.
Balance Sheet
As of July 31, 2007
Assets:
Cash and Cash Equivalents $14,759,859
Mortgage loans held for sale 739,165
Portfolio loans 0
Allowance for loan losses 0
Capitalized Mortgage Servicing rights, net 0
Retained interests in securitization,
at fair value 0
Furniture, fixtures, equipment,
an software, net 3,187,970
Deferred Costs 0
Principal & Interest Advances 0
Interest in subsidiaries 0
Other Assets 11,566,080
------------
Total Assets $30,253,074
============
Liabilities:
Accounts Payable prepetition $14,473,514
Accounts Payable postpetition 123,058
Accrued Expenses - Payroll 981,314
Accrued Expenses - Other 15,509,179
Warehouse Borrowings 22,987,992
Convertible Debt 1,500,000
Servicing & Working Capital Advances 54,408,435
Capital Lease Liability 6,258
Other liabilities 31,209,991
------------
Total Liabilities 141,199,741
Stockholders' Equity:
Common Stock 625,000
Additional Paid-In Capital 1,829,770
Retained Earnings (113,401,437)
------------
Total Stockholders' Equity (110,946,667)
------------
Total Debts & Stockholders' Equity $30,253,074
============
Mortgage Lenders Network USA, Inc.
Schedule of Cash Receipts and Disbursements
Month Ended July 31, 2007
Cash - Beginning of Month $8,625,953
Receipts:
Net Servicing Inflows 0
Warehouse and Loan Sale Inflows 0
Sale of Fixed Assets 0
Sale of Other Assets 0
Other Inflows 39,293
Transfers from Cash Collateral 0
Total Receipts 39,293
Disbursements:
Net Payroll 60,837
Payroll Taxes 28,839
Medical Coverage Sub/ FSA Witholding 14,297
Operating Expenses 465,939
Rent 0
Utilities 0
Insurance 0
Administrative & Selling 0
Other 0
Professional Fees Escrow Account 8,000
Professional Fees Paid 0
U.S. Trustee Fees 0
DIP Fees 0
Transfers to Cash Collateral 0
------------
Total Disbursements 577,912
------------
Net Cash Flow (538,619)
------------
Cash - End of Month $8,087,334
============
Mortgage Lenders Network USA, Inc.
Income Statement
Month Ended July 31, 2007
Revenue
Gain on Sale - Subprime $0
Gain on Sale - SRP/MBS 0
Mortgage origination income 0
Net Warehouse interest income 0
Servicing income, net 0
Loss on investment in MLN Depository 0
Other Income 1,823
------------
Total Revenues $1,823
------------
Expenses
Salaries $85,699
Overtime/Temp Help 1,139
Bonus/Incentives 0
Benefits (1,173)
Rent Expense 138,840
Telephone 11,064
Repairs & Maintenances 0
Office & Supplies Expense 4,187
Postage/Express Mail 9,988
Service Bureau 107,748
Consulting Fees 10,735
Insurance 0
Loan Loss/Foreclosure Exp. 7,655
Appraisal/Credit Expenses 493
Travel & Entertainment 887
Meetings/Seminars/Education 0
Membership Fes/Dues/Filings 8,150
Advertising - Other 0
Interest Expense - Other 0
Legal/Regulatory Expese 1,699,688
Miscellaneous Expenses 23,249
------------
Total Expenses Before Depreciation 2,108,347
Depreciation Expense 0
------------
Net Profit Before Reorganization Items (2,106,525)
Reorganization Items
Professional Fees 631,643
------------
Total Reorganization Items 631,643
Income Taxes 0
------------
Net Income (Loss) ($2,738,168)
============
Middletown, Conn.-based Mortgage Lenders Network USA Inc. --
http://www.mlnusa.com/-- is a privately held company offering a
full range of Alt-A/Non-Conforming and Conforming loan products
through its retail and wholesale channels. The company filed for
chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No.
07-10146). Pachulski Stang Ziehl & Jones LLP represents the
Debtor. Blank Rome LLP represents the Official Committee of
Unsecured Creditors. In the Debtor's schedules of assets and
liabilities filed with the Court, it disclosed total assets of
$464,847,213 and total debts of $556,459,464. The Debtor's
exclusive period to file a chapter 11 plan of reorganization is
set to expire on Jan. 2, 2008.
(Mortgage Lenders Bankruptcy News, Issue No. 19; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-
7000).
MORTGAGE LENDERS: Incurs $684,328 Net Loss in August 2007
---------------------------------------------------------
Mortgage Lenders Network USA, Inc.
Balance Sheet
As of August 31, 2007
Assets:
Cash and Cash Equivalents $14,076,579
Mortgage loans held for sale 739,165
Portfolio loans 0
Allowance for loan losses 0
Capitalized Mortgage Servicing rights, net 0
Retained interests in securitization,
at fair value 0
Furniture, fixtures, equipment,
an software, net 3,187,970
Deferred Costs 0
Principal & Interest Advances 0
Interest in subsidiaries 0
Other Assets 11,549,908
------------
Total Assets $29,553,622
============
Liabilities:
Accounts Payable prepetition $14,473,514
Accounts Payable postpetition 114,191
Accrued Expenses - Payroll 981,314
Accrued Expenses - Other 15,509,179
Warehouse Borrowings 22,987,992
Convertible Debt 1,500,000
Servicing & Working Capital Advances 54,408,435
Capital Lease Liability 0
Other liabilities 31,209,991
------------
Total Liabilities 141,184,617
Stockholders' Equity:
Common Stock 625,000
Additional Paid-In Capital 1,829,770
Retained Earnings (114,085,765)
------------
Total Stockholders' Equity (111,630,995)
------------
Total Debts & Stockholders' Equity $29,553,622
============
Mortgage Lenders Network USA, Inc.
Schedule of Cash Receipts and Disbursements
Month Ended August 31, 2007
Cash - Beginning of Month $8,087,334
Receipts:
Net Servicing Inflows 0
Warehouse and Loan Sale Inflows 0
Sale of Fixed Assets 0
Sale of Other Assets 0
Other Inflows 75,181
Transfers from Cash Collateral 0
Total Receipts 75,181
Disbursements:
Net Payroll 89,702
Payroll Taxes 0
Medical Coverage Sub/ FSA Witholding 0
Operating Expenses 602,502
Rent 0
Utilities 0
Insurance 0
Administrative & Selling 0
Other 0
Professional Fees Escrow Account 0
Professional Fees Paid 0
U.S. Trustee Fees 0
DIP Fees 0
Transfers to Cash Collateral 0
------------
Total Disbursements 692,204
------------
Net Cash Flow (617,023)
------------
Cash - End of Month $7,470,311
============
Mortgage Lenders Network USA, Inc.
Income Statement
Month Ended August 31, 2007
Revenue
Gain on Sale - Subprime $0
Gain on Sale - SRP/MBS 0
Mortgage origination income 0
Net Warehouse interest income 0
Servicing income, net 0
Loss on investment in MLN Depository 0
Other Income 148,851
------------
Total Revenues $148,851
------------
Expenses
Salaries $0
Overtime/Temp Help 0
Bonus/Incentives 0
Benefits (291,040)
Rent Expense 67,882
Telephone 4,069
Repairs & Maintenances 0
Office & Supplies Expense 84,723
Postage/Express Mail 577
Service Bureau 34,284
Consulting Fees 202,129
Insurance 0
Loan Loss/Foreclosure Exp. 0
Appraisal/Credit Expenses 0
Travel & Entertainment 741
Meetings/Seminars/Education 0
Membership Fes/Dues/Filings 2,002
Advertising - Other 0
Interest Expense - Other 0
Legal/Regulatory Expese (1,396,126)
Miscellaneous Expenses 7,354
------------
Total Expenses Before Depreciation (1,283,405)
Depreciation Expense 0
------------
Net Profit Before Reorganization Items 1,432,257
Reorganization Items
Professional Fees 2,116,585
------------
Total Reorganization Items 2,116,585
Income Taxes 0
------------
Net Income (Loss) ($684,328)
============
Middletown, Conn.-based Mortgage Lenders Network USA Inc. --
http://www.mlnusa.com/-- is a privately held company offering a
full range of Alt-A/Non-Conforming and Conforming loan products
through its retail and wholesale channels. The company filed for
chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No.
07-10146). Pachulski Stang Ziehl & Jones LLP represents the
Debtor. Blank Rome LLP represents the Official Committee of
Unsecured Creditors. In the Debtor's schedules of assets and
liabilities filed with the Court, it disclosed total assets of
$464,847,213 and total debts of $556,459,464. The Debtor's
exclusive period to file a chapter 11 plan of reorganization is
set to expire on Jan. 2, 2008.
(Mortgage Lenders Bankruptcy News, Issue No. 19; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-
7000).
PACIFIC LUMBER: Scotia Dev't Files September 2007 Operating Report
------------------------------------------------------------------
Scotia Development LLC, et al.
Consolidated Balance Sheet
As of September 30, 2007
ASSETS
Current Assets
Cash $183,310
Accounts receivable, net 9,704,408
Inventory: lower cost or market 19,573,384
Prepaid expenses 5,533,404
Prepaid Restructuring 200,000
Investments 0
Other 260,172
------------
Total Current Assets 35,454,678
Property, Plant & Equipment 214,210,213
Less: Accumulated Depreciation (138,641,304)
------------
Net book value of property & plant 75,568,909
Other Assets
Notes Receivable 502,878
Deferred Financing Costs 6,713,649
Long-term Investments 2,771,508
Restricted Cash 2,509,580
Restricted Cash Letter
of Credit Collateralization 14,398,907
Deferred Tax Assets 13,652,208
------------
TOTAL ASSETS $151,572,317
============
LIABILITIES & OWNERS EQUITY
Postpetition Liabilities
Trade accounts payable $1,282,597
Tax payable
Federal payroll taxes 42,588
State payroll taxes 11,701
Ad valorem taxes 169,956
Other taxes 21,187
------------
Total taxes payable 245,432
Secured debt postpetition 67,228,574
Accrued interest payable 2,955,614
Accrued professional fees 2,655,718
Other accrued liabilities
Trade Accruals 1,905,893
Compensation and Benefits 1,807,458
Other Accrued 715,832
Due to(from) Affiliate/Parent (1,705,715)
------------
Total Postpetition Liabilities 77,091,403
Prepetition Liabilities
Notes payable - Secured 84,277,251
Priority debt 4,824,071
Federal income tax (17,006)
FICA/ Withholding 0
Unsecured debt 2,923,410
Other 33,808,075
Due to Affiliate/Parent 41,661,505
------------
Total Prepetition Liabilities 167,477,307
------------
Total Liabilities 244,568,709
Owner's Equity (Deficit)
Equity in Affiliates 520,810,599
Common Stock 1,001
Additional Paid-in Capita 275,546,288
Retained Earnings: Filing Date (794,985,292)
Retained Earnings: Post Filing Date (94,368,988)
------------
Total Owner's Equity (92,996,392)
------------
TOTAL LIABILITIES & OWNERS EQUITY $151,572,317
============
Scotia Development LLC, et al.
Statement of Income
For the Period Ended September 30, 2007
Revenues $8,752,775
Total cost of revenues 8,842,946
------------
Gross Profit (90,171)
Operating Expenses
Selling & Marketing 75,057
General & Administrative 307,663
Insiders Compensation 113,136
Professional Fees 0
Idle Facilities 69,219
Environmental 28,522
------------
Total Operating Expenses 593,596
------------
Income before interest, depreciation, tax (683,768)
Interest Expense 1,510,977
Depreciation 859,031
Other (Income) Expenses 1,507,639
Amortization of Deferred Financing Costs 387,997
Restructuring
Professional Fees 1,584,834
Other 167,711
Equity Loss (Earnings) in Subsidiary 7,741,201
------------
Total Interest, Depreciation & Other Items 13,759,390
------------
Net Income Before Taxes (14,443,158)
Federal Income Tax 0
------------
Net Income (Loss) ($14,443,158)
============
Scotia Development LLC, et al.
Cash Receipts and Disbursements
For the Month Ended September 30, 2007
Receipts
Cash Sales $40,289
Collection of Accounts Receivable 5,991,545
Loans & Advances 5,503,040
Sale of Assets 75,000
Other 181,480
------------
Total Receipts 11,791,354
Disbursements
Net payroll 924,450
Payroll taxes paid 314,367
Sales, use & other taxes paid 10,773
Secured/rentals/leases 158,993
Utilities & telephone 82,451
Insurance 453,672
Cost of goods sold 7,192,605
Vehicle expenses 114,152
Travel & entertainment 44,341
Repairs, maintenance & supplies 548,398
Administrative & selling 1,022,390
Interest 347,260
Other 107,829
------------
Total Disbursements from operations 11,321,682
Professional fees 1,759,607
U.S. Trustee fees 250
Other reorganization expenses 0
------------
Total Disbursements 13,081,539
------------
Net Cash Flow (1,290,185)
------------
Cash, at the end of the month $183,310
============
Based in Oakland, California, The Pacific Lumber Company --
http://www.palco.com/-- and its subsidiaries operate in several
principal areas of the forest products industry, including the
growing and harvesting of redwood and Douglas-fir timber, the
milling of logs into lumber and the manufacture of lumber into a
variety of finished products.
Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.
Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.
Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032). Jack L. Kinzie, Esq., at Baker
Botts LLP, is Pacific Lumber's lead counsel. Nathaniel Peter
Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan,
Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific
Lumber's co-counsel. Kathryn A. Coleman, Esq., and Eric J.
Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia
Pacific's lead counsel. John F. Higgins, Esq., and James Matthew
Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-
counsel. John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones
LLP, represents the Official Committee of Unsecured Creditors.
When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335. The Debtors filed their Joint Plan of
Reorganization on Sept. 30, 2007. Their exclusive period to file
a chapter 11plan expired on the same date. (Scotia/Pacific Lumber
Bankruptcy News, Issue No. 33, http://bankrupt.com/newsstand/or
215/945-7000).
PACIFIC LUMBER: Scotia Pacific Files September 2007 Monthly Report
------------------------------------------------------------------
Scotia Pacific Company LLC
Consolidated Balance Sheet
As of September 30, 2007
ASSETS
Current Assets
Cash $51,536,008
Accounts receivable, net 2,058,043
Inventory: lower cost or market 2,636,838
Prepaid expenses 6,345,976
Prepaid Restructuring 939,671
Investments 0
Other 679,713
------------
Total Current Assets 64,196,250
Property, Plant & Equipment 599,435,623
Less: Accumulated Depreciation (358,291,556)
------------
Net book value of property & plant 241,144,066
Other Assets
Capitalized Expenses 10,890,174
------------
TOTAL ASSETS $316,230,491
============
LIABILITIES & OWNERS EQUITY
Postpetition Liabilities
Trade accounts payable $199,344
Tax payable
Federal payroll taxes 10,432
State payroll taxes 1,568
Ad valorem taxes 175,000
Other taxes 450,905
------------
Total taxes payable 637,905
Secured debt postpetition 0
Accrued interest payable 37,758,516
Accrued professional fees 6,340,896
Other accrued liabilities
Unsecured Debt 2,943,562
Payroll 411,087
Other 318,959
------------
Total Postpetition Liabilities 48,610,268
Prepetition Liabilities
Notes payable - Secured 767,318,907
Priority debt 207,812
Federal income tax 0
FICA/ Withholding 0
Unsecured debt 3,524,406
Other 235,944
------------
Total Prepetition Liabilities 771,287,069
------------
Total Liabilities 819,897,337
Owner's Equity (Deficit)
Preferred Stock 0
Common Stock 20,384,905
Additional Paid-in Capital 179,838,186
Retained Earnings: Filing Date (662,058,832)
Retained Earnings: Post Filing Date (41,831,105)
------------
Total Owner's Equity (503,666,846)
------------
TOTAL LIABILITIES & OWNERS EQUITY $316,230,491
============
Scotia Pacific Company LLC
Statement of Income
For the Period Ended September 30, 2007
Revenues $86,654
Total cost of revenues 1,298,559
------------
Gross Profit (1,211,904)
Operating Expenses
Selling & Marketing 0
General & Administrative 319,807
Insiders Compensation 0
Professional Fees 0
Idle Facilities 0
Environmental 0
------------
Total Operating Expenses 319,807
------------
Income before interest, depreciation, tax (1,531,711)
Interest Expense 4,719,774
Depreciation 382,489
Other (Income) Expenses (446,024)
Restructuring
Professional Fees 1,506,000
Other 47,252
Equity Loss (Earnings) in Subsidiary 0
------------
Total Interest, Depreciation & Other Items 6,209,490
------------
Net Income Before Taxes (7,741,201)
Federal Income Tax 0
------------
Net Income (Loss) ($7,741,201)
============
Scotia Pacific Company LLC
Cash Receipts and Disbursements
For the Month Ended September 30, 2007
Receipts
Cash Sales $0
Collection of Accounts Receivable 0
Loans & Advances 0
Sale of Assets 0
Interest Income 230,527
Log Sales to Palco less Reimbursable 2,828,144
Other 0
------------
Total Receipts 3,058,671
Disbursements
Net payroll 227,378
Payroll taxes paid 81,051
Sales, use & other taxes paid 0
Secured/rentals/leases 4,430
Utilities & telephone 282
Insurance 57,515
Cost of goods sold 0
Vehicle expenses 0
Travel & entertainment 0
Repairs, maintenance & supplies 0
Administrative & selling 531,924
Decking, logging & hauling 1,293,729
Other 0
------------
Total Disbursements from operations 2,196,309
Professional fees 3,701,911
U.S. Trustee fees 0
Interest 269,127
Other reorganization expenses 13,260
------------
Total Disbursements 6,180,607
------------
Net Cash Flow (3,121,936)
------------
Cash, at the end of the month $51,536,009
============
Based in Oakland, California, The Pacific Lumber Company --
http://www.palco.com/-- and its subsidiaries operate in several
principal areas of the forest products industry, including the
growing and harvesting of redwood and Douglas-fir timber, the
milling of logs into lumber and the manufacture of lumber into a
variety of finished products.
Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.
Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.
Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032). Jack L. Kinzie, Esq., at Baker
Botts LLP, is Pacific Lumber's lead counsel. Nathaniel Peter
Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan,
Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific
Lumber's co-counsel. Kathryn A. Coleman, Esq., and Eric J.
Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia
Pacific's lead counsel. John F. Higgins, Esq., and James Matthew
Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-
counsel. John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones
LLP, represents the Official Committee of Unsecured Creditors.
When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335. The Debtors filed their Joint Plan of
Reorganization on Sept. 30, 2007. Their exclusive period to file
a chapter 11plan expired on the same date. (Scotia/Pacific Lumber
Bankruptcy News, Issue No. 33, http://bankrupt.com/newsstand/or
215/945-7000).
*********
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*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy,
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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