/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/080209.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, February 9, 2008, Vol. 12, No. 34 Headlines AMERICAN HOME: AHMHI Files Operating Report for September 2007 AMERICAN HOME: AHMV Files Operating Report for September 2007 AMERICAN HOME: Great Oak Files Operating Report for September 2007 AMERICAN HOME: Homegate Files Operating Report for September 2007 AVADO BRANDS: Incurs $11,226,700 Net Loss in December 2007 DELPHI CORPORATION: Incurs $964 Million Net Loss in December 2007 DUNMORE HOME: Posts $490,271 Net Loss in Month Ended November 30 DUNMORE HOME: Posts $1,150,136 Net Loss in Month Ended December 31 HANCOCK FABRICS: Posts $1,569,000 Net Loss in Month Ended Jan. 5 HYDRAULIC TECH: Posts December 2007 Net Loss of $17,020,529 KITTY HAWK: Posts $236,951 Net Loss in December 2007 KITTY HAWK: AirCargo Posts $1,078,842 Net Loss in December 2007 KITTY HAWK: Cargo Posts $434,543 Net Loss in December 2007 KITTY HAWK: Ground Posts $987,944 Net Loss in December 2007 KITTY HAWK: KH Ground Posts $987,944 Net Loss in December 2007 LEVITZ FURNITURE: Has $70,951,000 Net Loss in Month Ended Jan. 6 MARCAL PAPER: Incurs $5,411,000 Net Loss in November 2007 MUSICLAND HOLDING: Posts $77,000 Net Loss in December 2007 NEW CENTURY: Incurs $14,549,259 Net Loss in Month Ended Nov. 30 SOLUTIA INC: Incurs $134,000,000 Net Loss in December 200 ********* AMERICAN HOME: AHMHI Files Operating Report for September 2007 -------------------------------------------------------------- American Home Mortgage Holdings Inc., a debtor-affiliate of American Home Mortgage Investment Corp. submitted its monthly operating report for September 2007. American Home Mortgage Holdings, Inc. Statement of Financial Condition As of September 30, 2007 Assets: Cash and cash equivalents $1,000 Accounts receivable 134,546 Intercompany receivable 133,122,337 Investment in subsidiaries (535,195,641) Other assets ------------ Total Assets ($401,937,758) ============ Liabilities and Stockholders' Equity Liabilities: Junior subordinated note $304,214,000 Accrued expenses & other liabilities 4,733,874 ------------ Total Liabilities 308,947,874 Stockholders' Equity Additional paid-in capital 94,597,808 Retained earnings (805,483,440) ------------ Total Stockholders' Equity (710,885,632) ------------ Total Liabilities & Stockholders' Equity ($401,937,758) ============ American Home Mortgage Holdings, Inc. Statement of Income Month Ended September 30, 2007 Income from subsidiaries Non-interest income ($688,756,350) ------------ Non-interest income (688,756,350) Loss before income taxes (688,756,350) Income taxes - ------------ Net loss ($688,756,350) ============ American Home Mortgage Holdings, Inc., also discloses that its cash as of Sept. 1, 2007, was $1,000. Since there was no cash receipts and disbursements for September, AHM Holdings' cash at the end of the month is still $1,000. About American Home 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 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 March 3, 2008. (American Home Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: AHMV Files Operating Report for September 2007 ------------------------------------------------------------- Great Oak Abstract Corp., a debtor-affiliate of American Home Mortgage Investment Corp. submitted its monthly operating report for September 2007. American Home Mortgage Ventures, LLC Statement of Financial Condition As of September 30, 2007 Assets: Cash and cash equivalents $613,049 Intercompany receivable - Premises and equipment, net 2,200 Other assets - ------------ Total Assets $615,249 ============ Liabilities and Stockholders' Equity Liabilities: Accrued expenses & other liabilities (568) Intercompany payable 156,507 ------------ Total Liabilities 155,939 Stockholders' Equity Additional paid-in capital 395,500 Retained earnings 63,810 ------------ Total Stockholders' Equity 459,310 ------------ Total Liabilities & Stockholders' Equity $615,249 ============ American Home Mortgage Ventures, LLC Statement of Income Month Ended September 30, 2007 Non-Interest Income: Fee income 1,125 ------------ Non-interest income 1,125 Expenses Salaries, commissions & benefits, net 1 Occupancy and equipment 231 Data processing and communications (1) Marketing and promotion 250 Travel and entertainment (1) Other 1 ------------ Total expenses 481 Loss before income taxes 644 Income taxes - ------------ Net loss $644 ============ American Home Mortgage Ventures, LLC Schedule of Cash Receipts and Disbursements Month Ended September 30, 2007 Cash - Beginning of Month, 09/01/2007 $611,549 Receipts: Cash sales - Accounts receivable - Sale of assets - Loans and advances 1,500 Administrative - Net payroll - Other - Transfers (from DIP accounts) - ------------ Total Receipts 1,500 Disbursements: Net payroll - Payroll taxes - Sales, use & other taxes - Loans and advances - Inventory purchases - Secured/rental/leases - Insurance - Administrative - Selling - Other - Transfers (from DIP accounts) - Professional fees - U.S. Trustee quarterly fees - Court costs - ------------ Total Disbursements - ------------ Net Cash Flow 1,500 ------------ Cash - End of Month - 09/30/07 $613,049 ============ About American Home 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 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 March 3, 2008. (American Home Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Great Oak Files Operating Report for September 2007 ----------------------------------------------------------------- Great Oak Abstract Corp., a debtor-affiliate of American Home Mortgage Investment Corp. submitted its monthly operating report for September 2007. Great Oak Abstract Corp. Statement of Financial Condition As of September 30, 2007 Assets: Cash and cash equivalents $380,941 Accounts receivable 36,615 Intercompany receivable 693,132 Premises and equipment, net 5,339 Other assets 104,800 ------------ Total Assets $1,220,827 ============ Liabilities and Stockholders' Equity Liabilities: Accrued expenses & other liabilities 76,743 ------------ Total Liabilities 76,743 Stockholders' Equity Additional paid-in capital 95,520 Retained earnings 1,048,564 ------------ Total Stockholders' Equity 1,144,084 ------------ Total Liabilities & Stockholders' Equity $1,220,827 ============ Great Oak Abstract Corp. also discloses that as of Sept. 1, 2007, it has cash amounting to $380,941. There had been no transactions related to cash receipts and disbursements. Hence, Great Oak's cash at the end of September was still $380,941. About American Home 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 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 March 3, 2008. (American Home Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Homegate Files Operating Report for September 2007 ----------------------------------------------------------------- Great Oak Abstract Corp., a debtor-affiliate of American Home Mortgage Investment Corp. submitted its monthly operating report for September 2007. Homegate Settlement Services, Inc. Statement of Financial Condition As of September 30, 2007 Assets: Cash and cash equivalents $25,524 Restricted cash - Intercompany receivable - Premises and equipment, net 233,715 Other assets - ------------ Total Assets $259,239 ============ Liabilities and Stockholders' Equity Liabilities: Accrued expenses & other liabilities $3,254,299 Intercompany payable 8,649,207 Income taxes payable 3,671 ------------ Total Liabilities 11,907,177 Stockholders' Equity Additional paid-in capital 250,000 Retained earnings (11,897,938) ------------ Total Stockholders' Equity (11,647,938) ------------ Total Liabilities & Stockholders' Equity $259,239 ============ Homegate Settlement Services, Inc. Statement of Income Month Ended September 30, 2007 Non-interest income: Tax service ($716,342) ------------ Non-interest income (716,342) Expenses: Salaries, commissions and benefits, net (1,552) Data processing and communications - Marketing and promotion 20,014 Other (1) ------------ Total expenses 18,461 Loss before income taxes (734,803) Income taxes - ------------ Net loss ($734,803) ============ Homegate Settlement Services, Inc. Schedule of Cash Receipts and Disbursements Month Ended September 30, 2007 Cash - Beginning of Month, 09/01/2007 $25,802 Receipts: Cash sales - Accounts receivable - Sale of assets - Loans and advances - Administrative - Net payroll - Other - Transfers (from DIP accounts) - ------------ Total Receipts 0 Disbursements: Net payroll 279 Payroll taxes - Sales, use & other taxes - Loans and advances - Inventory purchases - Secured/rental/leases - Insurance - Administrative - Selling - Other - Transfers (from DIP accounts) - Professional fees - U.S. Trustee quarterly fees - Court costs - ------------ Total Disbursements 279 ------------ Net Cash Flow (279) ------------ Cash - End of Month - 09/30/07 $25,523 ============ About American Home 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 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 March 3, 2008. (American Home Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AVADO BRANDS: Incurs $11,226,700 Net Loss in December 2007 ---------------------------------------------------------- Avado Brands Inc., aka Applesouth, and its debtor-affiliates submitted to the U.S. Bankruptcy Court for the District of Delaware their monthly operating report for December 2007. For December 2007, the Debtors generated net revenue of $16,756,100 and incurred a net loss of $11,226,700. Total cost of sales for the month were $5,723,800. Madison, Georgia-based Avado Brands Inc., aka Applesouth, -- http://www.avado.com/-- operates about 120 casual dining restaurants under the banners Don Pablo's Mexican Kitchen and Hops Grillhouse & Brewery. The restaurants are located in 22 states in the U.S. As of Sept. 5, 2007, the Debtors employed about 9,970 people. For the year ended July 31, 2007, the Debtors generated about $227.8 million in revenues and a negative EBITDA of $7.8 million. The Debtor filed for chapter 11 protection on Feb. 4, 2004 (Bankr. N.D. Tex. Case No. 04-1555). On April 26, 2005, Judge Steven Felsenthal confirmed Avado's Modified Plan of Reorganization and that Plan became effective on May 19, 2005. On Sept. 5, 2007, Avado filed a voluntary chapter 22 petition (Bankr. D. Del. Case No. 07-11276) to complete an orderly sale of its assets, via Section 363 of the Bankruptcy Code. About 10 of Avado's affiliates also filed for bankruptcy protection on the same date (Bankr. D. Del. Case Nos. 07-11277 through 07-11286). Michael Tuchin, Esq., and Stacia A. Neeley, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, represent the Debtors. Donald J. Detweiler, Esq., at Greenberg Traurig, LLP, is the Debtors' local counsel. Kurtzman Carson Consultants LLC acts as the Debtors claims and noticing agent. The U.S. Trustee for Region 3 has appointed creditors to serve on an Official Committee of Unsecured Creditors to this cases. Greenberg Traurig LLP represents the Committee. In their second filing, the Debtors disclosed estimated assets and debts between $1 million to $100 million. The Debtor's exclusive period for filing a plan is extended until May 2, 2008. DELPHI CORPORATION: Incurs $964 Million Net Loss in December 2007 ----------------------------------------------------------------- Delphi Corporation, et al. Unaudited Consolidated Balance Sheet As of December 31, 2007 (In Millions) ASSETS Current assets: Cash and cash equivalents $113 Restricted cash 125 Accounts receivable, net: General Motors and affiliates 972 Other third parties 623 Non-Debtor affiliates 250 Notes receivable from non-Debtor affiliates 278 Inventories, net: Productive material, work-in-process & supplies 653 Finished goods 170 Other current assets 385 Assets held for sale 467 -------- TOTAL CURRENT ASSETS 4,036 Long-term assets: Property, net 1,446 Investment in affiliates 331 Investments in non-Debtor affiliates 3,303 Goodwill 152 Other intangible assets 25 Other 487 -------- TOTAL LONG-TERM ASSETS 5,744 -------- TOTAL ASSETS $9,780 ======== LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities not subject to compromise: Current portion of long-term debt $2,782 Accounts payable 1,007 Accounts payable to non-Debtor affiliates 689 Accrued liabilities 1,322 Liabilities held for sale 167 -------- TOTAL CURRENT LIABILITIES 5,967 Long-term liabilities not subject to compromise: Long-term debt 24 Employee benefit plan obligations and other 956 Liabilities subject to compromise 16,276 -------- TOTAL LIABILITIES 23,223 Stockholders' deficit: TOTAL STOCKHOLDERS' DEFICIT (13,443) -------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $9,780 ======== Delphi Corporation, et al. Unaudited Consolidated Statement of Operations Month Ended December 31, 2007 (In Millions) Net sales: General Motors and affiliates $338 Other customers 241 Non-Debtor affiliates 27 -------- Total net sales 606 -------- Operating expenses: Cost of sales 676 U.S. employee workforce transition program charges (36) Long-lived asset impairment charges 39 Depreciation and amortization 56 Selling, general and administrative 118 Securities & ERISA litigation charge (10) -------- Total operating expenses 843 -------- Operating loss (237) Interest expense (45) Loss on extinguishment of debt - Other (expense) income, net 37 Reorganization items (14) Income tax benefit (expense) 9 Equity income from non-consolidated affiliates (15) Loss from discontinued operations (599) Equity income from non-Debtor affiliates (100) -------- NET LOSS ($964) ======== Delphi Corporation, et al. Unaudited Consolidated Statement of Cash Flows Month Ended December 31, 2007 (In Millions) Cash flows from operating activities: Net loss ($964) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 56 Long-lived asset impairment 39 Deferred income taxes (8) Pension and other postretirement benefit expenses 71 Equity income from unconsolidated affiliates 15 Equity income from non-Debtor affiliates 100 Reorganization items 14 U.S. employee workforce transition program charges (36) Securities and ERISA litigation credit (10) Changes in operating assets and liabilities: Accounts receivable, net 433 Inventories, net 31 Other assets 34 Accounts payable, accrued and other long-term debt (285) U.S. employee workforce transition program payment (30) Other postretirement benefit payments (16) Pension contributions (1) Payments for reorganization items (14) Dividends from non-debtor affiliates 568 Dividends from joint ventures 15 Other (43) Operating cash flows from discontinued operations 664 -------- Net cash used in operating activities 633 Cash flows from investing activities: Capital expenditures (8) Proceeds from sale of property 3 Decrease (increase) in restricted cash (1) Return on investment in non-debtor affiliates 108 Other (9) Investing cash flows used in discontinued operations (4) -------- Net cash used in investing activities 89 Cash flows from financing activities: Repayments on DIP credit facility (555) Repayments on borrowings from non-Debtor affiliates (66) Net repayments on borrowings from other debt (1) -------- Net cash used in financing activities (622) -------- Increase in cash and cash equivalents 100 Cash and cash equivalents at beginning of period 13 -------- Cash and cash equivalents at end of period $113 ======== Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: 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 March 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Debtor anticipates to emerge from bankruptcy by March 31, 2008, the expiration date of its exclusive plan filing period. (Delphi Bankruptcy News, Issue No. 110; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; $3.7 billion of first lien term loans, (P)Ba3; and $0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. As reported in the Troubled Company Reporter on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed $3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed $825 million senior secured second-lien term loan. DUNMORE HOME: Posts $490,271 Net Loss in Month Ended November 30 ---------------------------------------------------------------- Dunmore Home, Inc. Balance Sheet As of November 30, 2007 ASSETS Current Assets: Cash and cash equivalents $721,306 Accounts receivable, net 277,186 Inventory - Other current assets - ----------- Total current assets 998,492 Property plant and equipment 4,653,969 Investment in subsidiary LLC's 6,805,958 Related party note receivable (S. Dunmore) 11,277,410 Receivable from Dunmore Land Co. 350,750 Other long-term assets 1,790,910 Deferred compensation investments 1,658,998 ----------- Total Assets $27,536,487 =========== LIABILITIES & SHAREHOLDERS' DEFICIT Liabilities not subject to compromise: Current liabilities: Accounts payable trace (postpetition) $21,196 Accrued payroll 284,578 Debtor in Possession loan 566,423 Due to S. Dunmore JMP 103,333 Short-term borrowings 1,529,191 ----------- Total current liabilities 2,504,721 ----------- Liabilities subject to compromise: Accounts payable prepetition 1,709,841 Long-term unsecured debt - TPS 20,000,000 Long-term secured debt 2,000,000 Accrued warranty costs 384,577 Deferred compensation payable 1,662,593 Other accruals 887,770 ----------- Total liabilities $29,149,502 ----------- Shareholders' deficit: Common stock $25,000 Retained deficit (1,147,744) CY Income (490,271) ----------- ($1,613,015) ----------- Total liabilities and shareholders' deficit $27,536,487 =========== Dunmore Home, Inc. Statement of Operations for the month ended November 30, 2007 Revenues: Sale of real property - Rental & service income from SBDs $22,757 ----------- 22,757 ----------- Costs and expenses: Costs of goods sold - Payroll and benefit related costs 315,823 Insurance 2,481 Office administrative & technology costs 8,614 Rent 49,156 Depreciation & amortization 18,941 Professional fees 18,621 Other 2,991 Interest 129,556 ----------- 546,183 ----------- Earnings before reorganization & income tax (523,426) Reorganization items: Loss on disposal of facility - Gain on sale of real property - Professional fees - Provision for rejected executory contracts - Interest earned (33,155) ----------- (33,155) ----------- Loss before income tax & discontinued operations (490,271) ----------- Income tax benefit - Loss before discontinued operations (490,271) ----------- Discontinued operations: Loss from discontinued operations - ----------- Net loss ($490,271) =========== Dunmore Home, Inc. Cash Flow for the period ended November 30, 2007 Cash flows from operating activities: Sale of Stone Mitigation Land - Rent & service fees (S. Dunmore) $29,430 Other sources 20,088 Payroll and benefits (118,079) Insurance (8,123) Corporate office expenses (11,534) Consulting fees (10,800) Other (20,154) ----------- Net cash used in operating activities (119,172) ----------- Cash flows from investing activities: Purchase of property and equipment - Advances to related party - ----------- Net cash used in investing activities - ----------- Cash flows from financing activities: Debtor-in-possession loan (S. Dunmore Loan) 392,915 Debtor-in-possession loan payments - Contributions to LLC to cover utilities & warranty (33,190) ----------- Net cash provided by financing activities 359,725 ----------- Net change in cash and cash equivalents 240,553 ----------- Cash and cash equivalents, beg. of year 480,753 ----------- Cash and cash equivalents, end of year $721,306 =========== Headquartered in Granite Bay, California, Dunmore Homes Inc. is a privately-owned homebuilder. The company filed for Chapter 11 protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533). Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Debtor in its restructuring efforts. The Official Committee of Unsecured Creditors has selected Morrison & Foerster LLP as its counsel in this bankruptcy proceeding. When the Debtor filed for protection against its creditors, it listed assets and liabilities of more than $100 million. In January 2008, the U.S. Bankruptcy Court for the Southern District of New York ordered the transfer of Debtor's Chapter 11 case to the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division. The Debtor's exclusive period to file a plan expires on March 7, 2008. (Dunmore Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DUNMORE HOME: Posts $1,150,136 Net Loss in Month Ended December 31 ------------------------------------------------------------------ Dunmore Home, Inc. Balance Sheet As of December 31, 2007 ASSETS Current Assets: Cash and cash equivalents $2,733,267 Accounts receivable, net 237,312 Inventory - Other current assets - ----------- Total current assets 2,970,579 Property plant and equipment 661,197 Investment in subsidiary LLC's 5,812,227 Related party note receivable (S. Dunmore) 11,324,129 Receivable from Dunmore Land Co. 350,750 Other long-term assets 882,932 Deferred compensation investments 1,658,998 ----------- Total Assets $23,660,812 =========== LIABILITIES & SHAREHOLDERS' DEFICIT Liabilities not subject to compromise: Current liabilities: Accounts payable trace (postpetition) $116,038 Accrued payroll 144,858 Debtor in Possession loan - Due to S. Dunmore JMP 138,333 Short-term borrowings 1,191 ----------- Total current liabilities 400,420 ----------- Liabilities subject to compromise: Accounts payable prepetition 1,834,951 Long-term unsecured debt - TPS 20,000,000 Long-term secured debt 2,000,000 Accrued warranty costs 381,229 Deferred compensation payable 1,662,593 Other accruals 1,293,824 ----------- Total liabilities $27,573,017 ----------- Shareholders' deficit: Common stock $25,000 Retained deficit (2,296,798) CY Income (1,640,407) ----------- ($3,912,205) ----------- Total liabilities and shareholders' deficit $23,660,812 =========== Dunmore Home, Inc. Statement of Operations for the month ended December 31, 2007 Revenues: Sale of real property $4,360,000 Rental & service income from SBDs 27,738 ----------- 4,387,738 ----------- Costs and expenses: Costs of goods sold 3,981,839 Payroll and benefit related costs 93,697 Insurance 972,833 Office administrative & technology costs 65,763 Rent 68,912 Depreciation & amortization 25,819 Professional fees 124,982 Other 9,119 Interest 241,775 ----------- 5,584,739 ----------- Earnings before reorganization & income tax (1,197,001) Reorganization items: Loss on disposal of facility - Gain on sale of real property - Professional fees - Provision for rejected executory contracts - Interest earned (46,865) ----------- (46,865) ----------- Loss before income tax & discontinued operations (1,150,136) ----------- Income tax benefit - Loss before discontinued operations (1,150,136) ----------- Discontinued operations: Loss from discontinued operations - ----------- Net loss ($1,150,136) =========== Dunmore Home, Inc. Cash Flow for the period ended December 31, 2007 Cash flows from operating activities: Sale of Stone Mitigation Land $2,783,756 Rent & service fees (S. Dunmore) - Other sources 89,167 Payroll and benefits (343,977) Insurance (15,316) Corporate office expenses (14,204) Consulting fees (35,113) Other (140) ----------- Net cash used in operating activities 2,464,173 ----------- Cash flows from investing activities: Purchase of property and equipment - Advances to related party - ----------- Net cash used in investing activities - ----------- Cash flows from financing activities: Debtor-in-possession loan (S. Dunmore Loan) 235,525 Debtor-in-possession loan payments (635,274) Contributions to LLC to cover utilities & warranty (52,463) ----------- Net cash provided by financing activities (452,212) ----------- Net change in cash and cash equivalents 2,011,961 ----------- Cash and cash equivalents, beg. of year 721,306 ----------- Cash and cash equivalents, end of year $2,733,267 =========== Headquartered in Granite Bay, California, Dunmore Homes Inc. is a privately-owned homebuilder. The company filed for Chapter 11 protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533). Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Debtor in its restructuring efforts. The Official Committee of Unsecured Creditors has selected Morrison & Foerster LLP as its counsel in this bankruptcy proceeding. When the Debtor filed for protection against its creditors, it listed assets and liabilities of more than $100 million. In January 2008, the U.S. Bankruptcy Court for the Southern District of New York ordered the transfer of Debtor's Chapter 11 case to the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division. The Debtor's exclusive period to file a plan expires on March 7, 2008. (Dunmore Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). HANCOCK FABRICS: Posts $1,569,000 Net Loss in Month Ended Jan. 5 ---------------------------------------------------------------- Hancock Fabrics, Inc. and Subsidiaries Consolidated Balance Sheet As of January 5, 2008 ASSETS Current assets: Cash and cash equivalents $2,927,000 Receivables, less allowance for 6,495,000 doubtful accounts Inventories 87,125,000 Income taxes refundable 8,235,000 Prepaid expenses 1,857,000 ------------ Total current assets 106,639,000 Property and equipment 42,878,000 Other assets 14,801,000 ------------ Total Assets $164,318,000 ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities not subject to compromise Accounts payable $19,700,000 Credit facility; DIP financing 20,131,000 Accrued liabilities 9,379,000 Deferred tax liabilities 8,273,000 Liabilities subject to compromise Accounts payable 26,593,000 Accrued liabilities 13,215,000 Income taxes payable 1,000,000 Long-term lease financing obligations 1,674,000 Capital lease obligations 1,697,000 Postretirement benefits other than pensions 9,658,000 Pension and SERP liabilities 9,169,000 Other liabilities 9,104,000 ------------ Total Liabilities 129,593,000 Total Shareholders' Equity 34,725,000 ------------ Total liabilities and shareholders' equity $164,318,000 ============ Hancock Fabrics, Inc., and Subsidiaries Consolidated Statement of Operations For the Month Ended January 5, 2008 Sales $31,106,000 Cost of goods sold 19,073,000 ----------- Gross profit 12,033,000 Selling, general & admin expense 11,569,000 Depreciation and amortization 387,000 ----------- Operating income (loss) 77,000 Reorganization expenses 1,366,000 Interest expense, net 363,000 ----------- Earnings (loss) before income taxes (1,652,000) Income taxes (83,000) ----------- Net earnings (loss) ($1,569,000) =========== Hancock Fabrics, Inc., and Subsidiaries Consolidated Statement of Cash Flow For the Month Ended January 5, 2008 Cash flows from operating activities: Net earnings ($1,569,000) Adjustments to reconcile net earnings to cash flows used in operating activities Depreciation and amortization 859,000 Amortization of deferred loan costs 123,000 LIFO charge (credit) (716,000) Reserve for store closings credits (50,000) Reserve for obsolete inventory 0 Reserve for sales returns and bad debts 0 Stepped rent accrual 1,000 Loss on disposition of property and equipment (2,000) Gain on disposition of lease financing 0 obligations Stock compensation expense 83,000 (Increase) decrease in assets Receivables and prepaid expenses (2,000) Inventory at current cost 739,000 Income tax refundable 0 Other non-current assets 33,000 Increase (decrease) in liabilities Accounts payable (773,000) Accrued liabilities (500,000) Income taxes payable (83,000) Postretirement benefits other than pensions (41,000) Long-term pension and SERP liabilities 157,000 Reserve for store closings 4,000 Other liabilities 7,000 --------- Net cash used in operating activities (1,730,000) Cash flows from investing activities: Additions to property and equipment (131,000) Proceeds from the disposition of property and 2,000 equipment --------- Net cash used in investing activities (129,000) Cash flows from financing activities: Net borrowings on revolving credit agreement 1,425,000 Payments for lease financing (2,000) Payments for capital leases (3,000) Payments for loan costs 0 Purchase of treasury stock 0 Tax obligation settled with treasury stock 0 --------- Net cash provided by financing activities 1,420,000 --------- Decrease in cash and cash equivalents (439,000) Cash, beginning of period 3,366,000 --------- Cash, end of period $2,927,000 ========= Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc. (OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty retailer of a wide selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. Hancock Fabrics is one of the largest fabric retailers in the United States, currently operating approximately 400 retail stores in approximately 40 states. The company employs approximately 7,500 people on a full-time and part-time basis. Most of the company's employees work in its retail stores, or in field management to support its retail stores. The company and six of its debtor-affiliates filed for chapter 11 protection on March 21, 2007 (Bankr. D. Del. Lead Case No. 07-10353). Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, represent the Debtors. As of Sept. 1, 2007, Hancock Fabrics disclosed total assets of $159,673,000 and total liabilities of 122,316,000. The Debtors' exclusive period to file a Chapter 11 Plan expires on May 30, 2008. (Hancock Fabric Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). HYDRAULIC TECH: Posts December 2007 Net Loss of $17,020,529 ----------------------------------------------------------- Hydraulic Technologies (Holdings), Inc. submitted to the United States Bankruptcy Court for the Northern District of Ohio its monthly operating report for the month of December 2007. For the month ended Dec. 31, 2007, the Debtor had total revenues of $4,457,273, gross profit of $1,915,335, and a net loss of $17,020,529. As of Dec. 31, 2007, the Debtor's balance sheet showed total assets of $173,104, total postpetition liabilities of $399,020, total secured liabilities of $4,989,897, total prepetition liabilities of $12,866,389, and total equity deficit of $18,082,203. About Hydraulic Technologies Headquartered in Galion, Ohio, Hydraulic Technologies (Holdings), Inc. -- http://www.hydraulic-tech.com/-- produces cylinders, utilized in numerous applications and markets, through their flow line areas, as well as their custom cylinder work center. The company and its affiliate, Hydraulic Technologies Inc., filed for Chapter 11 protetcion July 3, 2007 (Bankr. N.D. Ohio Lead Case No. 07-61947). Sean Malloy, Esq. at McDonald Hopkins LLC and Jonathan Friedland, Esq., at Schiff Hardin LLP represent the Debtors. Donlin Recano serves as the Debtors' claims agent. Harry Greenfield, Esq., at Buckley King represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection against their creditors, they had total assets of $26,296,505 and total liabilities of $26,945,100. KITTY HAWK: Posts $236,951 Net Loss in December 2007 ---------------------------------------------------- Kitty Hawk Inc. filed with the U.S. Bankruptcy Court for the Northern District of Texas its monthly operating report for December 2007. For the month of December 2007, the Debtor generated zero net revenues and incurred a net loss of $236,951. Cash Beginning of the Month $37,748 Total Receipts $6,741,755 Total Cash Available $6,779,503 Total Operating Disbursements $5,122,306 Total Disbursement $5,122,306 Net Cash Flow $1,619,449 Cash End of the Month $1,657,197 As of Dec. 31, 2007, the Debtor's balance sheet showed total assets of $42,350,378, total postpetition liabilities of $1,078,017, total prepetition liabilities of $743,929, and total equity of $40,528,432. A full-text copy of Kitty Hawk Ground Inc.'s December 2007 Monthly Operating Report is available for free at http://ResearchArchives.com/t/s?27e1 About Kitty Hawk Headquartered in Texas, Kitty Hawk Inc. (AMEX: KHK) -- http://www.kittyhawkcompanies.com/-- is a holding company providing corporate planning and administrative services. It operates through its three wholly owned bankrupt subsidiaries, Kitty Hawk filed for Chapter 11 protection on May 1, 2000 (Bank. N.D. Tex. Case No. 00-42141). On Aug. 5, 2002, the Court confirmed the Debtor's Plan which became effective on Sept. 30, 2002. The Debtor, along with four affiliates, filed new voluntary chapter 11 petitions on Oct. 15, 2007 (Bankr. N.D. Tex. Case Nos. 07-44536 to 07-44540). Gogi Malik, Esq., and Jason S. Brookner, Esq., at Andrews & Kurth, LLP, represent the Debtors. The Official Committee of Unsecured Creditors has selected Munsch, Hardt, Kopf & Harr, P.C., as its counsel. As of Aug. 31, 2007, the Kitty Hawk's balance sheet showed total assets of $40 million and total liabilities of $31 million. KITTY HAWK: AirCargo Posts $1,078,842 Net Loss in December 2007 --------------------------------------------------------------- Kitty Hawk AirCargo Inc., a debtor-affiliate of Kitty Hawk Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas its monthly operating report for December 2007. For the month of December 2007, the Debtor generated net revenues of $1,482,950 and incurred a net loss of $1,078,842. Cash Beginning of the Month $37,623 Total Receipts $676,828 Total Cash Available $714,451 Total Operating Disbursements $149,945 Total Disbursement $149,945 Net Cash Flow $526,883 Cash End of the Month $564,506 As of Dec. 31, 2007, the Debtor's balance sheet showed total assets of $10,280,255, total postpetition liabilities of $1,518,868, total prepetition liabilities of $6,319,708, and total equity of $2,441,679. A full-text copy of Kitty Hawk Ground Inc.'s December 2007 Monthly Operating Report is available for free at http://ResearchArchives.com/t/s?27e4 About Kitty Hawk Headquartered in Texas, Kitty Hawk Inc. (AMEX: KHK) -- http://www.kittyhawkcompanies.com/-- is a holding company providing corporate planning and administrative services. It operates through its three wholly owned bankrupt subsidiaries, Kitty Hawk filed for Chapter 11 protection on May 1, 2000 (Bank. N.D. Tex. Case No. 00-42141). On Aug. 5, 2002, the Court confirmed the Debtor's Plan which became effective on Sept. 30, 2002. The Debtor, along with four affiliates, filed new voluntary chapter 11 petitions on Oct. 15, 2007 (Bankr. N.D. Tex. Case Nos. 07-44536 to 07-44540). Gogi Malik, Esq., and Jason S. Brookner, Esq., at Andrews & Kurth, LLP, represent the Debtors. The Official Committee of Unsecured Creditors has selected Munsch, Hardt, Kopf & Harr, P.C., as its counsel. As of Aug. 31, 2007, the Kitty Hawk's balance sheet showed total assets of $40 million and total liabilities of $31 million. KITTY HAWK: Cargo Posts $434,543 Net Loss in December 2007 ---------------------------------------------------------- Kitty Hawk Cargo Inc., a debtor-affiliate of Kitty Hawk Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas its monthly operating report for December 2007. For the month of December 2007, the Debtor generated net revenues of$19,249 and incurred a net loss of $434,543. Cash Beginning of the Month $783,166 Total Receipts $1,314,538 Total Cash Available $2,097,704 Total Operating Disbursements $2,029,259 Total Disbursement $2,029,259 Net Cash Flow ($714,721) Cash End of the Month $68,445 As of Dec. 31, 2007, the Debtor's balance sheet showed total assets of $1,774,609, total postpetition liabilities of $23,101,991, total prepetition liabilities of $4,526,072, and total deficit of $25,853,454. A full-text copy of Kitty Hawk Ground Inc.'s December 2007 Monthly Operating Report is available for free at http://ResearchArchives.com/t/s?27e3 About Kitty Hawk Headquartered in Texas, Kitty Hawk Inc. (AMEX: KHK) -- http://www.kittyhawkcompanies.com/-- is a holding company providing corporate planning and administrative services. It operates through its three wholly owned bankrupt subsidiaries, Kitty Hawk filed for Chapter 11 protection on May 1, 2000 (Bank. N.D. Tex. Case No. 00-42141). On Aug. 5, 2002, the Court confirmed the Debtor's Plan which became effective on Sept. 30, 2002. The Debtor, along with four affiliates, filed new voluntary chapter 11 petitions on Oct. 15, 2007 (Bankr. N.D. Tex. Case Nos. 07-44536 to 07-44540). Gogi Malik, Esq., and Jason S. Brookner, Esq., at Andrews & Kurth, LLP, represent the Debtors. The Official Committee of Unsecured Creditors has selected Munsch, Hardt, Kopf & Harr, P.C., as its counsel. As of Aug. 31, 2007, the Kitty Hawk's balance sheet showed total assets of $40 million and total liabilities of $31 million. KITTY HAWK: Ground Posts $987,944 Net Loss in December 2007 ----------------------------------------------------------- Kitty Hawk Ground Inc., a debtor-affiliate of Kitty Hawk Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas its monthly operating report for December 2007. For the month of December 2007, the Debtor generated negative net revenues of $79,171 and incurred a net loss of $987,944. Cash Beginning of the Month $178,251 Total Receipts $841,303 Total Cash Available $1,019,554 Total Operating Disbursements $950,784 Total Disbursement $950,784 Net Cash Flow ($109,481) Cash End of the Month $68,770 As of Dec. 31, 2007, the Debtor's balance sheet showed total assets of $5,223,047, total postpetition liabilities of $18,927,515, total prepetition liabilities of $8,932,438, and total deficit of $22,636,906. A full-text copy of Kitty Hawk Ground Inc.'s December 2007 Monthly Operating Report is available for free at http://ResearchArchives.com/t/s?27e2 About Kitty Hawk Headquartered in Texas, Kitty Hawk Inc. (AMEX: KHK) -- http://www.kittyhawkcompanies.com/-- is a holding company providing corporate planning and administrative services. It operates through its three wholly owned bankrupt subsidiaries, Kitty Hawk filed for Chapter 11 protection on May 1, 2000 (Bank. N.D. Tex. Case No. 00-42141). On Aug. 5, 2002, the Court confirmed the Debtor's Plan which became effective on Sept. 30, 2002. The Debtor, along with four affiliates, filed new voluntary chapter 11 petitions on Oct. 15, 2007 (Bankr. N.D. Tex. Case Nos. 07-44536 to 07-44540). Gogi Malik, Esq., and Jason S. Brookner, Esq., at Andrews & Kurth, LLP, represent the Debtors. The Official Committee of Unsecured Creditors has selected Munsch, Hardt, Kopf & Harr, P.C., as its counsel. As of Aug. 31, 2007, the Kitty Hawk's balance sheet showed total assets of $40 million and total liabilities of $31 million. KITTY HAWK: KH Ground Posts $987,944 Net Loss in December 2007 -------------------------------------------------------------- KH Ground Inc., a debtor-affiliate of Kitty Hawk Inc., filed with the U.S. Bankruptcy Court for the Northern District of Texas its monthly operating report for December 2007. For the month of December 2007, the Debtor generated zero revenues and incurred a net loss of $250. As of Dec. 31, 2007, the Debtor's balance sheet showed zero total assets, zero total liabilities, and zero total equity. A full-text copy of Kitty Hawk Ground Inc.'s December 2007 Monthly Operating Report is available for free at http://ResearchArchives.com/t/s?27e5 About Kitty Hawk Headquartered in Texas, Kitty Hawk Inc. (AMEX: KHK) -- http://www.kittyhawkcompanies.com/-- is a holding company providing corporate planning and administrative services. It operates through its three wholly owned bankrupt subsidiaries, Kitty Hawk filed for Chapter 11 protection on May 1, 2000 (Bank. N.D. Tex. Case No. 00-42141). On Aug. 5, 2002, the Court confirmed the Debtor's Plan which became effective on Sept. 30, 2002. The Debtor, along with four affiliates, filed new voluntary chapter 11 petitions on Oct. 15, 2007 (Bankr. N.D. Tex. Case Nos. 07-44536 to 07-44540). Gogi Malik, Esq., and Jason S. Brookner, Esq., at Andrews & Kurth, LLP, represent the Debtors. The Official Committee of Unsecured Creditors has selected Munsch, Hardt, Kopf & Harr, P.C., as its counsel. As of Aug. 31, 2007, the Kitty Hawk's balance sheet showed total assets of $40 million and total liabilities of $31 million. LEVITZ FURNITURE: Has $70,951,000 Net Loss in Month Ended Jan. 6 ---------------------------------------------------------------- PLVTZ, Inc. Balance Sheet As of January 6, 2008 ASSETS Current Assets Cash $13,860,000 Accounts receivable, net 2,764,000 Due from Hilco 4,497,000 Prepaid expenses 653,000 ------------ Total current assets 21,774,000 Other assets 1,467,000 Deferred financing fees 2,582,000 ------------ TOTAL ASSETS $25,823,000 ============ Liabilities and Shareholders Equity Liabilities Not Subject to Compromise Current Liabilities: Accounts payable trade $3,791,000 Accrued expenses 6,551,000 Customer Deposits 5,168,000 ------------ Total current liabilities 15,510,000 Liabilities Subject to Compromise Term loan B 22,000,000 Trade and other miscellaneous claims 45,280,000 Customer Deposit 5,227,000 ------------ Total 72,507,000 ------------ TOTAL LIABILITIES 88,017,000 ------------ Shareholder's (deficit): Preferred stock 47,000,000 Class A Common stock 139,030,000 Class B Common stock 10,000,000 Retained (deficit) (258,224,000) ------------ Shareholder's deficit (62,194,000) ------------ TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $25,823,000 ============ PLVTZ, Inc. Statement of Operations For the period December 3, 2007 to January 6, 2008 Revenues: Sales $7,708,000 Cost and expenses: Cost of goods sold 4,162,000 Selling, operating and administrative 5,227,000 Interest 918,000 ------------ TOTAL COSTS AND EXPENSES 10,307,000 ------------ (Loss) before reorganization items, amortization, and loss on sale of assets (2,599,000) Reorganization items: Professional fees 654,000 Reorganization 825,000 ------------ 1,479,000 Amortization 164,000 Loss on Sale of Assets 66,709,000 ------------ NET LOSS ($70,951,000) ============ PLVTZ, Inc. Statement of Cash Flows For the period December 3 to January 6, 2008 Cash flows from operating activities: Cash received from customers $31,987,000 Cash paid to suppliers and employees (20,994,000) Interest paid (208,000) ------------ Net cash from operating activities 10,785,000 Cash flow from financing activities: Cash received from sale $49,250,000 Payment of long term debt (30,102,000) Payment of letters of credit (10,070,000) Cash paid to Sales agent (13,341,000) Net cash used in financing activities (3,763,000) Net increase in cash and cash equivalents 7,022,000 Cash and cash equivalents at beginning of month 6,838,000 ------------ Cash and cash equivalents at end of month $13,860,000 ============ Based in New York City, Levitz Furniture Inc., nka PVLTZ Inc. -- http://www.levitz.com/-- is a specialty retailer of furniture, bedding and home furnishings in the United States. It has 76 locations in major metropolitan areas, principally in the Northeast and on the West Coast of the United States. Levitz Furniture Inc. and 11 affiliates filed for chapter 11 on Sept. 5, 1997. In December 2000, the Court confirmed the Debtors' Plan and Levitz emerged from chapter 11 on February 2001. Levitz Home Furnishings Inc. was created as the new holding company as a result of the emergence. Levitz Home Furnishings and 12 affiliates filed for chapter 11 protection on Oct. 11, 2005 (Bankr. S.D.N.Y. Lead Case No. 05- 45189). In their second filing, the Debtors disclosed about $245 million in total assets and $456 million in total debts. Nicholas M. Miller, Esq., and Richard H. Engman, Esq., at Jones Day represented the Debtors. Jeffrey L. Cohen, Esq., Jay R. Indyke, Esq., and Cathy Hershcopf, Esq., at Cooley Godward Kronish LLP served as counsel to the Official Committee of Unsecured Creditors. During this period, the Debtors closed around 35 stores in the Northeast, California, Minnesota and Arizona. PLVTZ Inc., a company created by Prentice Capital Management LP, and Great American Group purchased substantially all the assets of Levitz Home Furnishings in December 2005. Initially, Prentice owned all of the equity interests in PLVTZ. On July 6, 2007, PLVTZ was converted into a Delaware corporation, and Harbinger Capital Partners Special Situations Fund, LP, Harbinger Capital Partners Master Fund I, Ltd., and their affiliates became minority shareholders. Great American's stake in the acquisition was in running the going-out-of-business sales for some 27 Levitz units. PLVTZ, dba Levitz Furniture, continued to face decline in financial performance since December 2005. Liquidity issues and the inability to obtain additional capital prompted PLVTZ to seek protection under chapter 11 on Nov. 8, 2007 (Bankr. S.D.N.Y. Lead Case No. 07-13532). Paul D. Leake, Esq., and Brad B. Erens, Esq., at Jones Day represents the Debtors in their restructuring efforts. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. The Debtor's schedules show total assets of $123,842,190 and total liabilities of $76,421,661. The Debtors' exclusive period to file a chapter 11 plan expires on March 7, 2008. (Levitz Bankruptcy News, Issue No. 35; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). MARCAL PAPER: Incurs $5,411,000 Net Loss in November 2007 --------------------------------------------------------- Marcal Paper Mills Inc. delivered to the United States Bankruptcy Court for the New Jersey its operating report for the month ended November 2007. The Debtor generated net sales of $23,649,000 and incurred a net loss of $5,411,000 for the month ended Nov. 30, 2007. As of Nov. 30, 2007, the Debtor's balance sheet showed total assets of $169,148,000, total secured debt of $173,627,000, total liabilities subject to compromise of $75,803,000, and total stockholders' deficit of $80,282,000. Based in Elmwood Park, New Jersey, Marcal Paper Mills Inc. -- http://www.marcalpaper.com/-- is a privately-held, fourth generation family business. Founded in 1932, it employs over 900 people in its Elmwood Park, New Jersey and Chicago, Illinois manufacturing operations. The company produces over 160,000 tons of finished paper products, including bath tissue, kitchen towels, napkins and facial tissue, distributed to retail outlets for home consumption and to distributors for away-from- home use in hotels, restaurants, hospitals, offices and factories. The Debtor filed for chapter 11 protection on Nov. 30, 2006 (Bankr. D. N.J. Case No. 06-21886). Gerald H. Gline, Esq., and Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard P.A. represent the Debtor. The Debtor selected Logan and Company Inc. as noticing and claims agent. Kenneth Rosen, Esq., and Mary E. Seymour, Esq., at Lowenstein Sandler PC represent the Official Committee of Unsecured Creditors. In its schedules filed with the Court, the Debtor disclosed total assets of $178,626,436 and total debts of $178,890,725. The Confirmation Hearing on the Debtor's Second Amended Plan of Reorganization is set for Feb. 22, 2008. MUSICLAND HOLDING: Posts $77,000 Net Loss in December 2007 ---------------------------------------------------------- Musicland Holding Corp. Consolidated Balance Sheet As of December 31, 2007 ASSETS Current Assets Cash $11,706,000 Letters of Credit/Other Deposits 415,000 Other Amounts due from TransWorld 0 Receivables from Sub-leases 774,000 Miscellaneous CC 29,000 Vendors Credit due from services 1,541,000 ------------- Total 14,465,000 ============= Fixed Assets 0 Other assets Insurance Deposits 3,977,000 Utility and Tax Deposits 0 ------------- TOTAL ASSETS $18,442,000 ============= Liabilities & Shareholders' deficit Current liabilities Accounts payable Expense accruals $2,840,000 Other accrued liabilities Insurance Reserve 3,380,000 5% Admin. Fee on Wachovia L/C 250,000 Miscellaneous 29,000 ------------- Total 6,499,000 ------------- DIP financing 0 Other LT Liabilities 0 Liabilities subject to compromise 315,047,000 Shareholders' deficit (303,104,000) ------------- TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $18,442,000 ============= Musicland Holding Corp. Statement of Operations For the Month Ended December 31, 2007 Merchandise revenue $0 Non-merchandise revenue 0 Net sales 0 Cost of good sold 0 Gross Profit 0 Store operating expenses Payroll 0 Occupancy 0 Other 0 ------------- Store expenses 0 ------------- General & administrative 0 ------------- EBITDA 0 Chapter 11 & related charges (141,000) ------------- Operating income (Loss) (141,000) Interest income (expense) 40,000 Other non-operating income/expense 24,000 ------------- Earnings before Taxes (77,000) ------------- Income tax 0 ------------- Net earnings (Loss) ($77,000) ============= Musicland Holding Corp. Statement of Cash Flow For the Month Ended December 31, 2007 Operating activities Net earnings (Loss) ($77,000) Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: 1,000 Changes in operating assets and liabilities 0 Other Current Assets 0 ------------- Net cash provided by (used in) operating activities (76,000) Investing activities Net cash provided by (used in) investing activities 0 Financing activities 0 ------------- Increase/(decrease) in cash (76,000) ------------- Cash at the beginning of Period 11,782,000 ------------- Cash at the end of Period $11,706,000 ============= Based in New York, New York, Musicland Holding Corp., is a specialty retailer of music, movies and entertainment-related products. The Debtor and 14 of its affiliates filed for chapter 11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in their restructuring efforts. Mark T. Power, Esq., at Hahn & Hessen LLP, represents the Official Committee of Unsecured Creditors. At March 31, 2007, the Debtors disclosed $20,121,000 in total assets and $321,546,000 in total liabilities. On May 12, 2006, the Debtors filed their Joint Plan of Liquidation with the Court. On Sept. 14, 2006, they filed an amended Plan and a Second Amended Plan on Oct. 13, 2006. The Court approved the adequacy of the Amended Disclosure Statement on Oct. 13, 2006. The hearing to consider confirmation of the 2nd Amended Joint Plan started on Nov. 28, 2006. The Debtor's Second Amended Joint Plan of Liquidation was declared effective as of Jan. 30, 2008. (Musicland Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) NEW CENTURY: Incurs $14,549,259 Net Loss in Month Ended Nov. 30 --------------------------------------------------------------- New Century Financial Corp. and Affiliates Consolidated Balance Sheet As of November 30, 2007 Assets Current Assets: Unrestricted Cash and Equivalents $90,992,244 Restricted Cash and Equivalents [18,305,368] Accounts Receivable, Net 0 Notes Receivable 0 Inventories 0 Prepaid Expenses 9,979,169 Professional Retainers 0 Other Current Assets 79,131,060 -------------- Total Current Assets 198,407,841 -------------- Property and Equipment 57,723,190 Other Assets 7,594,625,697 -------------- Total Assets $7,850,756,729 ============== Liabilities and Owners' Equity Liabilities Not Subject to Compromise: Accounts Payable $0 Professional Fees 32,562,321 Liabilities Subject to Compromise: Secured Debt 7,255,428,803 Priority Debt 2,739,519 Unsecured Debt 254,229,903 -------------- Total Liabilities 7,544,960,546 -------------- Owner Equity: Capital Stock 9,480,047 Additional Paid-in Capital 2,170,845,310 Partners' Capital Account 0 Owners' Equity Account 0 Retained Earnings - Prepetition (1,088,392,467) Retained Earnings - Postpetition (786,136,707) Adjustments to Owner Equity 0 Postpetition Contributions 0 -------------- Net owner Equity 305,796,183 -------------- Total Liabilities and Owners' Equity $7,850,756,729 ============== New Century Financial Corp. and Affiliates Consolidated Statement of Operations Month Ended November 30, 2007 Revenues ($308,673) Cost of Goods Sold 0 Operating Expenses: Contibutions 36 Employee Benefits Programs 67,132 Office Expense 545,030 Rent and Lease Expense 1,006,471 Salaries, Commissions, & Fees 1,595,408 Travel and Entertainment 4,464 Other 1,546,315 Depreciation, Depletion & Amortization 2,105,405 -------------- Net Profit (Loss) before Other Income & Expenses (7,178,934) Other Expense 0 Reorganization Items Professional Fees 7,875,445 Interest Earned for Accumulated Cash (505,120) Total Reorganization Expenses 7,370,325 Income Taxes 0 -------------- Net Profit (Loss) ($14,549,259) ============== New Century Financial Corp. and Affiliates Schedule of Cash Receipts and Disbursements Month Ended November 30, 2007 Cash, Beginning of month $103,119,917 Total Receipts 2,126,096 Total Disbursements (14,553,768) Accounts and Intercompany Transfers 300,000 -------------- Net Cash Flow (12,127,672) -------------- Unrestricted Cash, End of month $90,992,244 ============== Founded in 1995, Irvine, Calif.-based New Century Financial Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. The company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2007 (Bankr. D. Del. Lead Case No. 07-10416). Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins, Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. The Official Committee of Unsecured Creditors selected Hahn & Hessen as its bankruptcy counsel and Blank Rome LLP as its co-counsel. When the Debtors filed for bankruptcy, they listed total assets of $36,276,815 and total debts of $102,503,950. The expiration of the Debtors' exclusive plan filing period was extended to Feb. 21, 2008. (New Century Bankruptcy News, Issue No. 30; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Incurs $134,000,000 Net Loss in December 2007 ---------------------------------------------------------- Solutia Chapter 11 Debtors Unaudited Statement of Consolidated Financial Position As of December 31, 2007 ASSETS Cash $4,000,000 Trade Receivables, net 176,000,000 Account Receivables-Unconsolidated Subsidiaries 72,000,000 Inventories 200,000,000 Other Current Assets 73,000,000 Assets of Discontinued Operations 5,000,000 -------------- Total Current Assets 530,000,000 Property, Plant and Equipment, net 663,000,000 Investments in Subsidiaries and Affiliates 687,000,000 Intangible Assets, net 106,000,000 Other Assets 69,000,000 -------------- Total Assets $2,055,000,000 ============== LIABILITIES AND SHAREHOLDERS' DEFICIT Accounts Payable $257,000,000 Short Term Debt 952,000,000 Other Current Liabilities 165,000,000 Liabilities of Discontinued Operations 2,000,000 -------------- Total Current Liabilities 1,376,000,000 Long-Term Debt 19,000,000 Other Long-Term Liabilities 195,000,000 -------------- Total Liabilities not Subject to Compromise 1,590,000,000 Liabilities Subject to Compromise 2,038,000,000 Shareholders' Deficit (1,573,000,000) -------------- Total Liabilities & Shareholders' Deficit $2,055,000,000 ============== Solutia Chapter 11 Debtors Unaudited Consolidated Statement of Operations For the Month Ended December 31, 2007 Total Net Sales $187,000,000 Total Cost Of Goods Sold 183,000,000 -------------- Gross Profit 4,000,000 Total MAT Expense 17,000,000 -------------- Operating Income (Loss) (13,000,000) Equity Earnings from Affiliates 0 Interest Expense, net (15,000,000) Other Income, net 4,000,000 Loss on debt modification 0 Reorganization Items: Professional fees (6,000,000) Provision for rejected executory contracts 0 Employee severance and retention costs (2,000,000) Adjustment to allowed claim amounts (91,000,000) Settlements of prepetition claims 0 Other 0 -------------- (99,000,000) -------------- Loss before taxes (123,000,000) Income tax expense (benefit) 0 Income from discontinued operations, net of tax (11,000,000) -------------- Net Loss ($134,000,000) ============== Based in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. (Solutia Bankruptcy News, Issue No. 116; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on Dec. 10, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed $1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed $400 million unsecured notes. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, Philline P. Reluya, Joseph Medel C. Martirez, Ma. Cristina I. Canson, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***