T R O U B L E D   C O M P A N Y   R E P O R T E R

            Saturday, January 12, 2008, Vol. 12, No. 10

                             Headlines



AEGIS MORTGAGE: Posts $65,792,995 Net Loss in October 1-31, 2007
ARMSTRONG WORLD: Desseaux Files November 2007 Operating Report
ARMSTRONG WORLD: Nitram Files November 2007 Operating Report
CATHOLIC CHURCH: Davenport Files Operating Report for Nov. 2007
DELPHI CORPORATION: Amends November 2007 Monthly Operating Report

DURA AUTOMOTIVE: Posts $12,399,000 Net Loss in November 2007
FIRST MAGNUS: Incurs $8,107,038 Net Loss in Month Ended Nov. 30
LEVITT AND SONS: Files November 2007 Monthly Operating Report
MORTGAGE LENDERS: Posts $1,875,004 Net Loss in September 2007
MORTGAGE LENDERS: Posts $531,251 Net Loss in Month Ended Oct. 31

MOVIE GALLERY: Posts $117,146,000 Net Loss in Month Ended Nov. 4
MOVIE GALLERY: Earns $36,439,000 in Month Ended December 2, 2007
PACIFIC LUMBER: ScoPac Files November 2007 Operating Report
PACIFIC LUMBER: Scotia Dev't Files November 2007 Operating Report
POPE & TALBOT: Files Schedules of Assets and Liabilities

POPE & TALBOT: P&T Ltd. Files Schedules of Assets and Debts
POPE & TALBOT: P&T Lumber Files Statement of Assets and Debts
POPE & TALBOT: P&T Spearfish Files Statement of Assets and Debts



                             *********

AEGIS MORTGAGE: Posts $65,792,995 Net Loss in October 1-31, 2007
----------------------------------------------------------------

                Aegis Mortgage Corporation, et al.
                    Consolidated Balance Sheet
                      As of October 31, 2007

                              Assets

Unrestricted Cash & Equivalents                     $18,249,891
Restricted Cash and Equivalents                      20,191,821
                                                 --------------
  Total Cash and Cash Equivalents                    38,441,713


Prime loans                                          13,727,487
Nonconforming Loans                                  12,265,214
Loan Premium, net                                     2,013,671
Repurchased Loans                                    17,095,280
Loan Loss Reserve                                             -
                                                 --------------
  Mortgage Loans Held for Sale                       45,101,652


ABS Nonconforming                                 3,659,308,285
ABS Loan Premium, net                              (19,716,325)
ABS Loan Loss Reserve                             (224,668,594)
                                                 --------------
  Mortgage Loans Held for Investment              3,414,923,366

Accrued Interest - Loans Held for Sale                        -
Accrued Int. - Loans Held for Investment             26,182,789
                                                 --------------
Accrued Interest Receivable                          26,182,789

Mortgage Servicing Rights                                     -
Property and Equipment, net                           6,367,886
Deferred Income Taxes                               131,270,981
Goodwill                                                      -
Prepaid Rent and Deposits                               944,160
Derivative Assets                                     6,123,593
Receivable for Advances                              44,950,230
Servicer Related                                        427,094
Other Assets                                        641,295,468
Intercompany Receivable                                       -
                                                 --------------
TOTAL ASSETS                                     $4,356,028,930
                                                 ==============

                Liabilities & Shareholder's
Equity

N/P Warehouse - Prime
540,186,233
N/p Warehouse - Nonconforming                        25,222,476
N/P Warehouse - Other                                19,550,612
N/P Warehouse - Repurchased                          11,933,754
                                                 --------------
Revolving Warehouse and
  Repurchase Facilities                             596,893,074

Bonds Payable                                     3,512,560,457
NAS IO Bonds Payable                                 20,700,000
NIM Bonds Payable                                    53,185,643
Bond Premium, net                                   (24,254,884)
                                                 --------------
  Bond Financing on Mortgage                      3,562,191,215
  Loans Held for Investment

  Subordinated Debt                                 177,156,872
  Accrued Interest Payable                            8,175,037
  Accounts Payable and
   Accrued Expenses                                  88,964,944
  Notes Payable-Other                                         -
                                                 --------------
Total Liabilities                                 4,433,381,142

Common Stock                                             97,386
Preferred Stock                                         104,000
Other Comprehensive Income                                    -
Paid in Capital                                      50,959,490
Distributions                                                 -
Treasury Stock                                                -
Dividends                                               (32,500)
Retained Earnings                                    91,041,942
Current Net Income Prepetition                     (101,661,579)
Current Net Income                                 (117,860,951)
                                                 --------------
Total Equity                                        (77,352,212)
                                                 --------------
TOTAL LIABILITIES & EQUITY                       $4,356,028,930
                                                 ==============



                 Aegis Mortgage Corporation, et al.
                   Consolidated Income Statement
                      October 1 to 31, 2007

Loans Held for
Sale
  Interest Income                                      $392,634
  Interest Expense                                       (1,005)
  Servicing Expense                                      (3,131)
                                                 --------------
  Net Interest Income                                   388,497

Loans Held for Investment
  Interest Income                                    28,157,314
  Interest Expense                                  (11,805,565)
  Servicing Expense                                  (1,646,971)
                                                 --------------
  Net Interest Income                                14,704,777

Gains on Sale                                         1,151,820
Premiums Paid                                           (10,596)
Loan Points                                               7,296
Loan Origination Fees                                     8,904
Broker Fees Received                                          -
                                                 --------------
  Production Income                                  (1,146,216)

Servicing and Prepayment Income                         214,472
Late Charges                                              1,903
                                                 --------------
  Total Servicing Fees                                  216,375

Other income                                        (11,785,728)
                                                 --------------
Total Revenue                                         2,377,706

Salaries                                                668,848
Bonuses                                                 540,911
Commissions                                                   -
Employee Benefits                                        15,324
Payroll Taxes                                            31,607
Meetings & Travel                                        20,757
Meals & Entertainment                                     3,612
                                                 --------------
  Total Personnel Expenses                            1,281,060

Rent                                                    232,516
Telephone                                                25,555
Office Supplies                                           2,786
Shipping & Postage                                         (618)
Equipment                                             3,069,628
                                                 --------------
  Total Office Expenses                               3,329,867

Professional expense                                    162,905
Marketing                                               (10,225)
Loan Related Expenses                                    67,576
Banking                                                     (50)
Other Taxes/Licenses/Fees                                42,470
Other Expenses                                          187,877
                                                 --------------
  Total Other Expenses                                  450,554

  Direct Operating Expense                            5,061,481
  Direct Operating Income                            (2,683,775)

Loan Loss Provision                                  62,478,487
Deferred SFAS 91 Expenses                               171,500
Sub Debt Expense                                              -
Depreciation Expense                                    459,233
Amortization                                                  -
Direct Allocation to Subs                                     -
Allocation Between Subs                                       -
                                                 --------------
  Indirect Operating Expense                         63,109,220
                                                 --------------
Total Expenses                                       68,170,701

Income (Loss) Before Taxes                          (65,792,995)

Federal and State Income Taxes                                -
                                                 --------------
Net Income (Loss)                                  ($65,792,995)
                                                 ==============

Headquartered in Houston, Texas, Aegis Mortgage Corporation --
http://www.aegismtg.com/-- offers a variety of mortgage loan
products to brokers through its subsidiaries.

The company together with 10 affiliates filed for chapter 11
protection on Aug. 13, 2007 (Bankr. D. Del. Case No. 07-11119)
Curtis A. Hehn, Esq., James E. O'Neill, Esq., Laura Davis Jones,
Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang, Ziehl, &
Jones, L.L.P., serve as counsel to the Debtors.  The Official
Committee of Unsecured Creditors is represented by Landis Rath &
Cobb LLP.  In schedules filed with the Court, Aegis disclosed
total assets of $138,265,342 and total debts of $4,125,470.

The Debtors' exlusive plan filing period expired Jan. 11, 2008,
but the Debtors requested on Dec. 18, 2007, for an extension to
file their plan until April 9, 2008.  (Aegis Bankruptcy News,
Issue No. 14, Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


ARMSTRONG WORLD: Desseaux Files November 2007 Operating Report
--------------------------------------------------------------
Desseaux Corporation of North America, debtor-affiliate of
Armstrong World Industries Inc. submitted its monthly operating
report for November 2007, disclosing:

                    Desseaux Corp. of North America
                        Unaudited Balance Sheet
                       As of November 30, 2007

                                ASSETS

Current Assets                                               $0
Plant, Property and Equipment, Net                            0
Other Assets:
   Investment in Subsidiary                           3,885,354
   Due from Parent Corporation                              840
                                                ---------------
Total Assets                                         $3,886,194
                                                ===============

                         LIABILITIES & EQUITY

Liabilities Not Subject to Compromise:
   Due to Parent Corporation                             66,805
   Payable to Nitram Liquidators - Postpetition           8,085
                                                ---------------
Total Liabilities Not Subject to Compromise              74,890

Liabilities Subject to Compromise:
   Accrued Expenses                                     247,768
   Payable to Subsidiary                                944,860
   Notes Payable                                      2,964,500
                                                ---------------
Total Liabilities Subject to Compromise               4,157,128

Shareholder's Equity:
   Common Stock                                           1,000
   Paid-in Capital                                    2,499,000
   Retained Deficit                                  (2,845,824)
                                                ---------------
Total Shareholder's Equity                             (345,824)
                                                ---------------
Total Liabilities and Owners' Equity                 $3,886,194
                                                ===============


                    Desseaux Corp. of North America
                  Unaudited Statements of Operations
                     Month Ended November 30, 2007

Ordinary Income/Expense                                      $0
                                                ---------------
Federal Income Taxes                                          0
State Taxes                                                   0
                                                ---------------
Net Income (Loss)                                            $0
                                                ===============

Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc.
(NYSE: AWI) -- http://www.armstrong.com/-- designs and
manufactures floors, ceilings and cabinets.  AWI operates 42
plants in 12 countries and employs approximately 14,200 people
worldwide.

The company has Asia-Pacific locations in Australia, China, Hong
Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South
Korea, Taiwan, Thailand and Vietnam.  It also has locations in
Colombia, Costa Rica, Greece and Iceland, among others.

The company and its affiliates filed for chapter 11 protection on
Dec. 6, 2000 (Bankr. Del. Case No. 00-04469).  Stephen Karotkin,
Esq., at Weil, Gotshal & Manges LLP, and Russell C.Silberglied,
Esq., at Richards, Layton & Finger, P.A., represent the Debtors in
their restructuring efforts.  The company and its affiliates
tapped the Feinberg Group for analysis, evaluation, and treatment
of personal injury asbestos claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured Creditors.
The Creditors Committee tapped Houlihan Lokey for financial and
investment advice.  The Official Committee of Asbestos Personal
Injury Claimant hired Ashby & Geddes as counsel.

The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003.  The
District Court Judge Robreno confirmed AWI's Modified Plan on
Aug. 14, 2006.  The Clerk entered the formal written confirmation
order on Aug. 18, 2006.  The company's "Fourth Amended Plan of
Reorganization, as Modified," has become effective and AWI has
emerged from Chapter 11.

Nitram Liquidators Inc. and Desseaux Corporation of North America
delivered to the Court a Joint Chapter 11 Plan of Liquidation and
an accompanying Disclosure Statement on Sept. 20, 2007.  Nitram
and Desseaux relate that their First Amended Joint Plan of
Liquidation became effective on Dec. 28, 2007.  The First Amended
Joint Plan of Liquidation was confirmed by Judge Judith K.
Fitzgerald of the U.S. Bankruptcy Court for the District
of Delaware on Dec. 17, 2007.

(Armstrong Bankruptcy News, Issue No. 120; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ARMSTRONG WORLD: Nitram Files November 2007 Operating Report
------------------------------------------------------------
Nitram Liquidators Inc., debtor-affiliate of Armstrong World
Industries Inc., delivered its monthly operating report for
November 2007, disclosing:

                        Nitram Liquidators, Inc.
                        Unaudited Balance Sheet
                        As of November 30, 2007

                                ASSETS

Current Assets:
   Cash                                                 $11,752
   Accounts Receivable                                  559,035
   Reserve for Uncollectible Accounts                  (559,035)
                                                ---------------
Other Current Assets:
   Deferred Tax                                               0
   Due from Parent Corporation                          952,944
   Note Receivable from Southwest Recreation          6,334,948
   Reserve for Receivable                            (6,334,948)
                                                ---------------
Total Current Assets                                    964,695
                                                ---------------
Plant, Property and Equipment, Net                            0
Other Assets                                                  0
                                                ---------------
Total Assets                                           $964,695
                                                ===============

                         LIABILITIES & EQUITY

Liabilities Not Subject to Compromise:
   Due to Parent Corporation                           $104,012
   Accounts Payable - Postpetition                          481
                                                ---------------
Total Liabilities Not Subject to Compromise             104,493

Liabilities Subject to Compromise:
   Accounts Payable                                     208,148
   Warranty Reserves                                    569,998
   Due to Affiliates                                  8,443,772
                                                ---------------
Total Liabilities Subject to Compromise               9,221,918

Shareholder's Equity:
   Common Stock                                           1,000
   Cumulative Dividends (Preferred)                   2,964,500
   Dividends                                           (284,098)
   Paid-in Capital                                    3,459,000
   Retained Deficit                                 (14,502,117)
                                                ---------------
Total Equity                                         (8,361,715)
                                                ---------------
Total Liabilities and Owners' Equity                   $964,695
                                                ===============


                        Nitram Liquidators, Inc.
                  Unaudited Statements of Operations
                     Month Ended November 30, 2007

Income                                                       $0

Operating Expenses                                            0
                                                ---------------
Operating Income (Loss)                                       0

Other Income (Expense)
   Interest Expense                                         (58)
                                                ---------------
Total Other Income                                          (58)
                                                ---------------
Income (Loss) Before Capital-related Expenses              ($58)
                                                ===============

Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc.
(NYSE: AWI) -- http://www.armstrong.com/-- designs and
manufactures floors, ceilings and cabinets.  AWI operates 42
plants in 12 countries and employs approximately 14,200 people
worldwide.

The company has Asia-Pacific locations in Australia, China, Hong
Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South
Korea, Taiwan, Thailand and Vietnam.  It also has locations in
Colombia, Costa Rica, Greece and Iceland, among others.

The company and its affiliates filed for chapter 11 protection on
Dec. 6, 2000 (Bankr. Del. Case No. 00-04469).  Stephen Karotkin,
Esq., at Weil, Gotshal & Manges LLP, and Russell C.Silberglied,
Esq., at Richards, Layton & Finger, P.A., represent the Debtors in
their restructuring efforts.  The company and its affiliates
tapped the Feinberg Group for analysis, evaluation, and treatment
of personal injury asbestos claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured Creditors.
The Creditors Committee tapped Houlihan Lokey for financial and
investment advice.  The Official Committee of Asbestos Personal
Injury Claimant hired Ashby & Geddes as counsel.

The Bankruptcy Court confirmed AWI's plan on Nov. 18, 2003.  The
District Court Judge Robreno confirmed AWI's Modified Plan on
Aug. 14, 2006.  The Clerk entered the formal written confirmation
order on Aug. 18, 2006.  The company's "Fourth Amended Plan of
Reorganization, as Modified," has become effective and AWI has
emerged from Chapter 11.

Nitram Liquidators Inc. and Desseaux Corporation of North America
delivered to the Court a Joint Chapter 11 Plan of Liquidation and
an accompanying Disclosure Statement on Sept. 20, 2007.  Nitram
and Desseaux relate that their First Amended Joint Plan of
Liquidation became effective on Dec. 28, 2007.  The First Amended
Joint Plan of Liquidation was confirmed by Judge Judith K.
Fitzgerald of the U.S. Bankruptcy Court for the District
of Delaware on Dec. 17, 2007.

(Armstrong Bankruptcy News, Issue No. 120; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


CATHOLIC CHURCH: Davenport Files Operating Report for Nov. 2007
---------------------------------------------------------------

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

ASSETS

Current Assets
   Cash and cash equivalents - unrestricted           $5,249,640
   Cash and cash equivalents - restricted              2,671,989
   Accounts receivable, net                              136,712
   Inventory                                                   -
   Prepaid expenses                                        2,272
   Professional retainers                                 55,652
                                                  --------------
Total Current Assets                                   8,116,265
                                                  --------------
Property and Equipment
   Real Property                                           3,000
   Machinery and equipment                                 6,000
   Furniture and fixtures                                  8,914
   Office equipment                                       59,500
   Leasehold improvements                                      -
   Vehicles                                               45,460
                                                  --------------
Total Property and Equipment                             122,874
                                                  --------------
Total Assets                                          $8,239,139
                                                  ==============

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                            $24,220
            Real property lease arrearage                      -
            Personal property lease arrearage                  -
      Accrued professional fees                                -
      Current portion of long-term debt                        -
      other:                                                   -
         Pass-through collections                         24,840
         Additional Accrued Vacations                      5,574
                                                  --------------
   Total Current Liabilities                              54,634
                                                  --------------
   Long-Term Postpetition Debt, Net                            -
                                                  --------------
   Total Postpetition Liabilities                         54,634
                                                  --------------
   Prepetition
      Secured claims                                           -
      Priority unsecured claims                          160,888
      General unsecured claims                        13,605,000
                                                  --------------
   Total Prepetition Liabilities                      13,765,888
                                                  --------------
     Total Liabilities                                13,820,522
                                                  --------------
Equity (deficit):
   Retained earnings/deficit at filing                 5,855,424
   Capital stock                                               -
   Additional paid-in capital                                  -
   Cumulative profit/loss since filing               (11,459,359)
   Post-petition contributions/distributions
      or draws                                                 -
   Market value adjustment                                22,552
                                                  --------------
   Total equity (deficit)                             (5,581,383)
                                                  --------------
Total liabilities & equity (deficit)                  $8,239,139
                                                  ==============



                   Diocese of Davenport in Iowa
                     Statement of Operations
                For the month ending November 30, 2007

Revenues
   Gross sales                                              $403
   Less: sales returns & allowances                            -
   Net sales                                                 403
   Less: cost of goods sold                                    -
   Gross profit                                              403
   Interest                                                2,656
   Other income:
      Charitable gifts                                   217,513
      Insurance receipts                                 133,288
      Investment income/fees                             104,247
                                                  --------------
   Total revenues                                        458,107
                                                  --------------
Expenses:
   Compensation to owner(s)/officer(s)                    12,209
   Salaries                                              105,460
   Commissions                                                 -
   Contract labor                                          5,327
   Rent/Lease:
      Personal property                                      150
      Real property                                            -
   Insurance                                              81,553
   Management fees                                             -
   Depreciation                                          (10,495)
   Taxes:
      Employer payroll taxes                               6,586
      Real property taxes                                      -
      Other taxes                                              -
   Other selling                                               -
   Other administrative                                   37,234
   Interest                                                    -
   Other expenses:
      Employee benefits                                   24,853
      Charity collection                                   1,094
      Medical assistance/Victim assistance                 1,841
      Utilities                                            4,832
      Transfer to unrestricted                                 -
      Professional fees                                        -
      Sabbatical                                               -
      Cemetery perpetual care                                  -
      Youth trip expenses                                 90,805
                                                  --------------
         Total expenses                                  361,449
                                                  --------------
   Reorganization items:
      Professional fees                                  (23,700)
      Estimate of claims payments                     (7,468,531)
      Interest earned on accumulated cash
         from resulting Chapter 11 case                        -
      Gain or (Loss) from sale of equipment                    -
             U.S. Trustee quarterly fees                       -
      Advertising/printing/mailing                             -
                                                  --------------
         Total reorganization items                   (7,492,231)
                                                  --------------
Net profit (loss) before federal &
   state taxes                                        (7,395,573)
   Federal & state income taxes                                -
                                                  --------------
Net profit (loss)                                    ($7,395,573)
                                                  ==============


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

Cash receipts
   Rent/Leases collected                                  $3,175
   Cash received from sales                                  403
   Interest received                                       2,656
   Borrowings increase in accounts payable                     -
   Funds from shareholders, partners,
      or other insiders (Sale of property)                     -
   Capital contributions                                       -
   Annual diocesan appeal/donations                      217,513
   Investment income/misc.                                     -
   Insurance receipts                                    133,288
   Tribunal/Immigration/Faith Formation fees             101,072
      Decrease in prepaid/accounts receivable                 -
   Misc./Increase in accounts payable                          -
                                                  --------------
   Total Cash Receipts                                   458,107

Cash disbursements:
   Payments for inventory                                      -
   Selling                                                     -
   Administrative                                        158,160
   Capital expenditures                                        -
   Principal payments on debt                                  -
   Interest paid                                               -
   Rent/Lease:
      Personal Property                                      150
      Real Property                                            -
   Amount paid to owner(s)/officer(s)
      Salaries                                            12,209
      Draws                                                    -
      Commissions/Royalties                                    -
      Expense Reimbursements                                   -
      Other                                                    -
   Salaries/Commissions (less employee
      withholding                                         81,664
   Management fees                                             -
   Taxes
      Employee withholding                                23,796
      Employer payroll taxes                               6,586
      Real property taxes                                      -
      Other taxes                                              -
   Other cash outflows:
      Insurance                                           81,553
      Utilities                                            4,832
      Medical Assistance                                   1,841
      Employee benefits                                   24,853
      Misc                                                47,939
                                                  --------------
   Total Cash Disbursements                              443,583
                                                  --------------
Net increase (decrease) in cash                           14,524

Cash balance, beginning of period                      1,702,729

Cash balance, end of period                           $1,717,253
                                                  ==============

The Diocese of Davenport in Iowa filed for chapter 11 protection
(Bankr. S.D. Iowa 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.

The Debtor was unable to file a Chapter 11 Plan of Reorganization
when its exclusive plan-filing period expired on Nov. 16, 2007.
The Court ordered the Diocese to file its Plan and disclosure
statement by Jan. 31, 2008.  The Court will convene a hearing on
March 5, 2008, 1:30 p.m. to consider approval of the Disclosure
Statement.  Judge Jackwig notes that the hearing is a "no
testimony hearing."

(Catholic Church Bankruptcy News, Issue No. 111; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


DELPHI CORPORATION: Amends November 2007 Monthly Operating Report
-----------------------------------------------------------------
On Jan. 4, 2008, Delphi Corporation and its debtor-affiliates
delivered to the U.S. Bankruptcy Court for the Southern District
of New York an amended version of its monthly operating report for
the month ended Nov. 30, 2007.

The purpose of the amendment, according to Delphi Corp. Chief
Accounting Officer and Controller Thomas S. Timko, is to correct
a reclassification among certain line items in the unaudited
condensed combined debtors-in-possession financial statements
included in the monthly operating report filed on Dec. 31, 2007.

The monthly and year-to-date net losses in the statement of
operations were properly reported but cost of sales was
understated and equity income (loss) earnings from non-Debtor
affiliates should have included additional income of the same
amount, Mr. Timko tells the Honorable Robert Drain.  The
reclassification also caused investments in non-Debtor affiliates
and accounts payable to non-Debtor affiliates on the balance sheet
to be understated by the same amount.

Mr. Timko relates that the monthly cash flows provided by
operating activities in the statement of cash flows were properly
reported because the reclassification impacted offsetting items
within cash flows provided by operating activities.  The amount
of the reclassification that impacted the unaudited condensed
combined debtors-in-possession financial statements included in
the originally filed MOR was $183,000,000, he discloses.

                    Delphi Corporation, et al.
           Amended Unaudited Consolidated Balance Sheet
                      As of November 30, 2007
                          (In Millions)

                              ASSETS

Current assets:
   Cash and cash equivalents                                $13
   Restricted cash                                          124
   Accounts receivable, net:
      General Motors and affiliates                       1,482
      Other third parties                                   949
      Non-Debtor affiliates                                 232
   Notes receivable from non-Debtor affiliates              286
   Inventories, net:
      Productive material, work-in-process & supplies       794
      Finished goods                                        215
   Other current assets                                     357
                                                       --------
      TOTAL CURRENT ASSETS                                4,452

Long-term assets:
   Property, net                                          1,756
   Investment in affiliates                                 380
   Investments in non-Debtor affiliates                   4,229
   Goodwill                                                 152
   Other intangible assets                                   25
   Other                                                    534
                                                       --------
      TOTAL LONG-TERM ASSETS                              7,076
                                                       --------
TOTAL ASSETS                                            $11,528
                                                       ========

              LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities not subject to compromise:
   Debtor-in-possession financing                        $3,301
   Accounts payable                                       1,279
   Accounts payable to non-Debtor affiliates                708
   Accrued liabilities                                    1,362
   Notes payable to non-Debtor affiliates                    66
                                                       --------
   TOTAL CURRENT LIABILITIES                              6,716

Long-term liabilities not subject to compromise:
   Employee benefit plan obligations and other            1,143

Liabilities subject to compromise                        17,008
                                                       --------
   TOTAL LIABILITIES                                     24,867

Stockholders' deficit:
   TOTAL STOCKHOLDERS' DEFICIT                          (13,339)
                                                       --------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT             $11,528
                                                       ========


                    Delphi Corporation, et al.
      Amended Unaudited Consolidated Statement of Operations
                   Month Ended November 30, 2007
                          (In Millions)

Net sales:
   General Motors and affiliates                           $660
   Other customers                                          431
   Non-Debtor affiliates                                     54
                                                       --------
Total net sales                                           1,145
                                                       --------
Operating expenses:
   Cost of sales          &nbs