TCR_Public/080503.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, May 3, 2008, Vol. 12, No. 105

                             Headlines

AMERICAN LAFRANCE: Files Operating Report for Period Ended Apr 4
ASARCO LLC: Earns $22,252,000 in Month Ended March 31, 2008
CATHOLIC CHURCH: Davenport Posts $272,017 Net Loss in March
CATHOLIC CHURCH: Fairbanks Amends Schedules of Assets and Debts
COMPLETE RETREATS: Files Operating Report for January 2008

COMPLETE RETREATS: Files Operating Report for February 2008
COMPLETE RETREATS: Files Operating Report for March 2008
DELTA FINANCIAL: Earns $35,070,523 in Month Ended March 31
FEDDERS CORP: Files Report for the Month Ended February 29
HOMEBANC MORTGAGE: Posts March 2008 Net Loss of $2,128,000

KITTY HAWK: Incurs $196,534 Net Loss in March 2008
KITTY HAWK: KH Ground Files January 2008 Operating Report
KITTY HAWK: KH Ground Files February 2008 Operating Report
KITTY HAWK: KH Ground Files March 2008 Operating Report
KITTY HAWK: Kitty Hawk AirCargo Files January 2008 Report

KITTY HAWK: Kitty Hawk AirCargo Files February 2008 Report
KITTY HAWK: Kitty Hawk AirCargo Files March 2008 Report
KITTY HAWK: Kitty Hawk Cargo Files January 2008 Report
KITTY HAWK: Kitty Hawk Cargo Files February 2008 Report
KITTY HAWK: Kitty Hawk Cargo Files March 2008 Report

KITTY HAWK: Kitty Hawk Ground Files January 2008 Report
KITTY HAWK: Kitty Hawk Ground Files February 2008 Report
KITTY HAWK: Kitty Hawk Ground Files March 2008 Report
LEVITZ FURNITURE: Earns $331,000 in Month Ended April 6, 2008
MOVIE GALLERY: Earns $5,656,000 for the Month of March 2008

NETBANK INC: Delivers March 2008 Monthly Operating Report
PACIFIC LUMBER: Scotia Dev't Files March 2008 Operating Report
PACIFIC LUMBER: Scotia Pacific Files March 2008 Operating Report

                             *********

AMERICAN LAFRANCE: Files Operating Report for Period Ended Apr 4
----------------------------------------------------------------
American LaFrance, LLC, delivered to the Court its Monthly
Operating Report for the period from March 1, 2008, through
April 4, 2008.

The Debtor also provided data for its revenues, cash on hand,  
and estimated inventory.

A full-text copy of American LaFrance's March 2008 Monthly
Operating Report is available for free at:

   http://bankrupt.com/misc/ALF_MonthlyOperatingReport.pdf

                     American LaFrance, LLC
                 Cash Receipts and Disbursements
           For the Period from Mar. 1 to Apr. 4, 2008

Beginning Cash Book Balance                        $1,215,863
(excluding Restricted Cash)

Receipts:
Accounts Receivable                                 5,468,906
Borrowing Under DIP Facility                       20,000,000
                                                    ----------
  Total Receipts                                   $25,468,906
                                                    ----------
Disbursements:
  Admin                                               $231,763
  Out-bound freight                                     72,494
  Taxes                                                      -
  Employee Expense                                      59,849
  Equipment Rental                                      67,233
  Insurance                                            350,508
  Marketing                                             55,653
  Occupancy                                            949,007
  Payroll                                            3,004,934
  Employee Benefits & Contractors                    1,565,989
  Audit/Tax                                             32,193
  Supplies                                             151,829
  Travel                                                   144
  Utilities                                            235,468
  Inventory & Material                               7,926,641
  Utility Deposits                                      53,600
  PPMG                                                 267,264
  DIP Interest                                         157,745
  A -- Professional Fee Escrow                       1,075,000
  B -- Payments on Prepetition Debt                  5,468,906
                                                   -----------
  Total Disbursements                              $21,726,220
                                                   -----------
Net Cash Flow                                      $3,742,687
                                                   -----------
Ending Cash Book Balance                           $4,958,550
                                                   ===========

                    About American LaFrance

Headquartered in Summerville, South Carolina, American LaFrance
LLC -- http://www.americanlafrance.com/-- is one of the
oldest           
fire apparatus manufacturers and one of the top six suppliers of
emergency vehicles in North America.  The company filed for
Chapter 11 protection on Jan. 28, 2008 (Bankr. D. Del. Case No.
08-10178).  Ian T. Peck, Esq., and Abigail W. Ottmers, Esq., at
Haynes and Boone LLP, are the Debtor's proposed Lead Counsel.  
Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg &
Ellers LLP, are the Debtor's proposed local counsel.  In its
schedules of assets and debts filed Feb. 4, 2008, the Debtor
disclosed $188,990,680 in total assets and $89,065,038 in total
debts.

The Debtor's exclusive period to file a plan expires on May 27,
2008. (American LaFrance Bankruptcy News, Issue No. 15; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or            
215/945-7000).


ASARCO LLC: Earns $22,252,000 in Month Ended March 31, 2008
-----------------------------------------------------------

                        ASARCO LLC, et al.
                           Balance Sheet
                      As of March 31, 2008

ASSETS
   Current Assets:
   Cash                                           $964,795,000
   Restricted Cash                                  25,582,000
   Accounts receivable, net                        180,338,000
   Inventory                                       317,648,000
   Prepaid expenses                                  5,384,000
   Other current assets                             11,231,000
                                               ---------------
Total Current Assets                             1,504,978,000

Net property, plant and equipment                  496,912,000
Other Assets
   Investments in subs                              99,166,000
   Advances to affiliates                              579,000
   Prepaid pension & retirement plan                         0
   Non-current deferred tax asset                   40,952,000
   Other                                            81,524,000
                                               ---------------
Total assets                                    $2,224,111,000
                                               ===============

LIABILITIES
   Postpetition liabilities:
   Accounts payable                                $83,889,000
   Accrued liabilities                             587,688,000
   Debtor-in-possession financing                            0
                                               ---------------
Total postpetition liabilities                     671,577,000

Prepetition liabilities:
Not subject to compromise - credit                   3,645,000
Not subject to compromise - other                   55,996,000
Advances from affiliates                            24,919,000
Subject to compromise                            1,756,766,000
                                               ---------------
Total prepetition liabilities                    1,841,325,000
                                               ---------------
Total liabilities                               $2,512,903,000
                                               ===============

OWNERS' EQUITY (DEFICIT)
Common stock                                       508,324,000
Additional paid-in capital                         104,578,000
Other comprehensive income                        (213,545,000)
Retained earnings: filing date                  (1,649,762,000)
                                               ---------------
Total prepetition owners' equity                (1,250,405,000)
Retained earnings: post-filing date                961,613,000
                                               ---------------
Total owners' equity (net worth)                  (288,792,000)
Total liabilities and owners' equity            $2,224,111,000
                                               ===============

                           ASARCO LLC, et al.
               Consolidated Statement of Operations
                    Month Ended March 31, 2008

Sales                                             $180,723,000
Cost of products and services                      144,183,000
                                                  ------------
Gross profit                                        36,540,000

Operating expenses:
Selling and general & admin expenses                 3,423,000
Depreciation & amortization                          2,836,000
Provision accretion expense of asset
   retirement obligation                               412,000
                                                  ------------
Operating income                                    29,869,000

Interest expense                                       196,000
Interest income                                     (2,773,000)
Reorganization expenses                              3,271,000
Other miscellaneous (income) expenses               (7,452,000)
                                                  ------------
Income (loss) before taxes                          36,628,000
Income taxes                                        14,376,000
                                                  ------------
Net income (loss)                                  $22,252,000
                                                  ============

                           ASARCO LLC, et al.
             Consolidated Cash Receipts & Disbursements
                   Month Ended March 31, 2008

Receipts                                          $182,868,000
Disbursements:
Inventory material                                  65,691,000
Operating disbursements                             59,619,000
Capital expenditures                                23,740,000
                                                   -----------
Total disbursements                                149,050,000

Operating cash flow                                 33,818,000
Reorganization disbursements                         4,519,000
                                                  ------------
Net cash flow                                       29,299,000
Net payments to secured Lenders                              0
                                                  ------------
Net change in cash                                  29,299,000
Beginning cash balance                             961,078,000
                                                  ------------
Ending cash balances                              $990,377,000
                                                  ============

                          About ASARCO

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

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

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

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

ASARCO and its debtor affiliates are scheduled to file a plan of
reorganization on June 10, 2008.  (ASARCO Bankruptcy News, Issue
No. 71; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


CATHOLIC CHURCH: Davenport Posts $272,017 Net Loss in March
-----------------------------------------------------------

                  Diocese of Davenport in Iowa
                 Statement of Financial Position
                      As of March 31, 2008

ASSETS

Current Assets
   Cash and cash equivalents - unrestricted           $5,039,722
   Cash and cash equivalents - restricted              2,326,239
   Accounts receivable, net                               55,837
   Inventory                                                   -
   Prepaid expenses                                        2,448
   Professional retainers                                 55,652
   Other: Assets Waiting Disposition                     618,533
                                                  --------------
Total Current Assets                                   8,098,431
                                                  --------------
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                                          $8,221,305
                                                  ==============

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                            $95,648
      Real property lease arrearage                            -
      Personal property lease arrearage                        -
      Accrued professional fees                                -
      Current portion of long-term debt                        -
      other:
         Pass-through collections                         53,436
         Additional Accrued Vacations                      5,574
         Misc.                                               300
                                                  --------------
   Total Current Liabilities                             154,958
                                                  --------------
   Long-Term Postpetition Debt, Net                            -
                                                  --------------
   Total Postpetition Liabilities                        154,958
                                                  --------------
   Prepetition
      Secured claims                                           -
      Priority unsecured claims                          160,588
      General unsecured claims                        13,602,441
                                                  --------------
   Total Prepetition Liabilities                      13,763,029
                                                  --------------
     Total Liabilities                                13,917,987
                                                  --------------
Equity (deficit):
   Retained earnings/deficit at filing                 5,855,424
   Capital stock                                               -
   Additional paid-in capital                                  -
   Cumulative profit/loss since filing               (11,572,128)
   Post-petition contributions/distributions
      or draws                                                 -
   Market value adjustment                                20,023
                                                  --------------
   Total equity (deficit)                             (5,696,681)
                                                  --------------
Total liabilities & equity (deficit)                  $8,221,305
                                                  ==============

                  Diocese of Davenport in Iowa
                     Statement of Operations
               For the month ending March 31, 2008

Revenues
   Gross sales                                              $111
   Less: sales returns & allowances                            -
   Net sales                                                 111
   Less: cost of goods sold                                    -
   Gross profit                                              111
   Interest                                                6,049
   Other income:
      Charitable gifts                                   204,646
      Insurance receipts                                  60,776
      Investment income/fees                              (8,591)
                                                  --------------
   Total revenues                                        262,992
                                                  --------------

Expenses:
   Compensation to owner(s)/officer(s)                    12,209
   Salaries                                              109,158
   Commissions                                                 -
   Contract labor                                          5,016
   Rent/Lease:
      Personal property                                      748
      Real property                                            -
   Insurance                                             247,109
   Management fees                                             -
   Depreciation                                            2,105
   Taxes:
      Employer payroll taxes                               6,947
      Real property taxes                                      -
      Other taxes                                              -
   Other selling                                               -
   Other administrative                                  111,102
   Interest                                                    -
   Other expenses:
      Employee benefits                                   38,883
      Charity collection                                   2,730
      Medical assistance/Victim assistance                   543
      Utilities                                           15,309
      Transfer to unrestricted                                 -
      Professional fees                                        -
      Sabbatical                                               -
      Cemetery perpetual care                                  -
      Youth trip expenses                                      -
                                                  --------------
         Total expenses                                  551,857
                                                  --------------
   Reorganization items:
      Professional fees                                        -
      Estimate of claims payments                              -
      Interest earned on accumulated cash
         from resulting Chapter 11 case                   16,849
      Gain or (Loss) from sale of equipment                    -
      U.S. Trustee quarterly fees                              -
      Advertising/printing/mailing                             -
                                                  --------------
         Total reorganization items                       16,849
                                                  --------------
Net profit (loss) before federal &
   state taxes                                          (272,017)
Federal & state income taxes                                   -
                                                  --------------
Net profit (loss)                                      ($272,017)
                                                  ==============

                  Diocese of Davenport in Iowa
          Statement of Cash Receipts and Disbursements
               For the month ending March 31, 2008

Cash receipts
   Rent/Leases collected                                  $3,095
   Cash received from sales                                  111
   Interest received                                      22,898
   Borrowings increase in accounts payable                     -
   Funds from shareholders, partners,
      or other insiders (Sale of property)                     -
   Capital contributions                                       -
   Annual diocesan appeal/donations                      204,646
   Investment income/misc.                                     -
   Insurance receipts                                     60,776
   Tribunal/Immigration/Faith Formation fees             (11,685)
   Decrease in prepaids/accounts receivable               73,798
   Misc./Increase in accounts payable                      4,515
                                                  --------------
   Total Cash Receipts                                   358,154

Cash disbursements:
   Payments for inventory                                      -
   Selling                                                     -
   Administrative                                        118,848
   Capital expenditures                                        -
   Principal payments on debt                                  -
   Interest paid                                               -
   Rent/Lease:
      Personal Property                                      748
      Real Property                                            -
   Amount paid to owner(s)/officer(s)
      Salaries                                            12,209
      Draws                                                    -
      Commissions/Royalties                                    -
      Expense Reimbursements                                   -
      Other                                                    -
   Salaries/Commissions (less employee
      withholding                                         85,362
   Management fees                                             -
   Taxes
      Employee withholding                                23,796
      Employer payroll taxes                               6,947
      Real property taxes                                      -
      Other taxes                                              -
   Other cash outflows:
      Insurance                                          247,109
      Utilities                                           15,309
      Medical/Victim Assistance                              543
      Employee benefits                                   38,883
      Misc.                                                    -
                                                  --------------
   Total Cash Disbursements                              549,753
                                                  --------------
Net increase (decrease) in cash                         (191,599)

Cash balance, beginning of period                      2,128,292
                                                  --------------
Cash balance, end of period                           $1,936,693
                                                  ==============

                    About Diocese of Davenport

The Diocese of Davenport in Iowa filed for chapter 11 protection
(Bankr. S.D. Ia. Case No. 06-02229) on Oct. 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., at 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 Court approved on April 3, 2008, the Diocese of
Davenport's second amended disclosure statement explaining its
joint plan of reorganization.  The Committee is a proponent to the
plan.  The confirmation hearing of the Debtor's plan started on
April 30, 2008.  (Catholic Church Bankruptcy News, Issue No. 123;
Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/  
or 215/945-7000).


CATHOLIC CHURCH: Fairbanks Amends Schedules of Assets and Debts
---------------------------------------------------------------
The Catholic Bishop of Northern Alaska, aka The Roman Catholic
Diocese of Fairbanks in Alaska, delivered to the U.S.
Bankruptcy Court for the District of Alaska amended schedules of
assets and liabilities to report changes in total scheduled
assets and liabilities.

As previously reported, the Diocese said it has $13,316,864
in total assets and $1,838,719 in total debts.

A. Real Property
      Catholic Schools of Fairbanks                   $3,500,000
      Bishop's residence                               1,100,000
      Chancery and Retreat Center                      1,100,000
      Others                                           3,421,000

B. Personal Property
B.1   Cash on Hand                                         1,600
B.2   Bank Accounts                                      485,237
B.3   Security Deposits                                        0
B.4   Household goods                                          0
B.5   Book, artwork and collectibles                     Unknown
B.6   Wearing apparel                                          0
B.7   Furs and jewelry                                       168
B.8   Firearms and other equipment                             0
B.9   Insurance Policies                                       0
B.10  Annuities                                                0
B.11  Interests in an education IRA                            0
B.12  Interests in pension plans 401(k) Plan                   0
B.13  Stock and Interests                              1,088,256
B.14  Interests in partnerships or joint ventures              0
B.15  Government and corporate bonds                           0
B.16  Accounts Receivable                                787,239
B.17  Alimony                                                  0
B.18  Other Liquidated Debts Owing Debtor                      0
B.19  Equitable or future interests                       93,935
B.20  Interests in estate death benefit plan             Unknown
B.21  Other Contingent and Unliquidated Claims           Unknown
B.22  Patents, copyrights, and others                          0
B.23  Licenses, franchises & other intangibles                 0
B.24  Customer lists or other compilations               Unknown
B.25  Vehicles                                            96,285
B.26  Boats, motors and accessories                Salvage Value
B.27  Aircraft and accessories                           235,000
B.28  Office Equipment                                   300,000
B.29  Equipment and Supplies for Business                      0
B.30  Inventory                                           84,179
B.31  Animals                                                  0
B.32  Crops                                                    0
B.33  Farming equipment and implements                         0
B.34  Farm supplies, chemicals, and feed                       0
B.35  Other Personal Property                            965,793

      TOTAL SCHEDULED ASSETS                         $13,258,694
      ==========================================================

C. Property Claimed                                          $0

D. Creditors Holding Secured Claims
       McCosker, Dennis                                   50,719
       Beaumont, Jack and Suzanne                         23,200
       Hiland, Joyce Marian                               33,950
       Bozzo, Alfred J.                                   11,091
       Ishiguro, Chothilde                                13,713
       Sinnot, James Francis                              10,621
       Others                                             63,232

E. Creditors Holding Unsecured Priority Claims
       Taxes, advanced fees and employee claims          280,969

F. Creditors Holding Unsecured Nonpriority Claims
       Deferred revenue - school tuition                 422,982
       Society of Jesus, Oregon Province                 216,966
       Alaska Conference of Catholic Bishops             259,541
       Others                                            480,287

      TOTAL SCHEDULED LIABILITIES                     $1,867,276
      ==========================================================

                    About Diocese of Fairbanks

The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic
Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka
The Diocese of Fairbanks, aka CBNA filed for chapter 11 bankruptcy
on March 1, 2008 (Bankr. D. Alaska Case No. 08-00110).  Susan G.
Boswell, Esq., at Quarles & Brady LLP represents the Debtor in its
restructuring efforts.  Michael R. Mills, Esq., of Dorsey &
Whitney LLP serves as the Debtor's local counsel and Cook,
Schuhmann & Groseclose Inc. as its special counsel.  Judge Donald
MacDonald, IV, of the United States Bankruptcy Court for the
District of Alaska presides over Fairbanks' Chapter 11 case.  The
Debtor's schedules show total assets of $13,316,864 and total
liabilities of $1,838,719.   The church's exclusive plan filing
period expires on June 29, 2008.  (Catholic Church Bankruptcy
News, Issue No. 123; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


COMPLETE RETREATS: Files Operating Report for January 2008
----------------------------------------------------------

                 Complete Retreats, LLC, et al.
                    Monthly Operating Report
              For the Month Ended January 31, 2008

(a) Plan payments made during the month:  

      Administrative Expenses                                $0
      Secured Creditors                                       0
      Priority Creditors                                      0
      Unsecured Creditors                                     0
                                                        -------
        Total Plan Payments                                   0
                                                        =======

(b) Cash Flow Report:
      
      Total cash receipts                              $636,402
      Total cash disbursements including plan payments   34,763
                                                       --------
        Net cash flow                                  $601,638
                                                       ========

                      About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245).
Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert
LLP represent the Debtors in their restructuring efforts.
Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford,
Connecticut, serves as counsel to the Official Committee of
Unsecured Creditors.  No estimated assets have been listed in the
Debtors' schedules, however, the Debtors disclosed $308,000,000 in
total debts.  The Court confirmed the Debtor's plan on Nov. 30,
2007.  (Complete Retreats Bankruptcy News, Issue No. 42;
Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).


COMPLETE RETREATS: Files Operating Report for February 2008
-----------------------------------------------------------

                 Complete Retreats, LLC, et al.
                    Monthly Operating Report
             For the Month Ended February 29, 2008

(a) Plan payments made during the month:  

      Administrative Expenses                               $0
      Secured Creditors                                      0
      Priority Creditors                                     0
      Unsecured Creditors                                    0
                                                       -------
        Total Plan Payments                                  0
                                                       =======

(b) Cash Flow Report:
      
      Total cash receipts                               $1,882
      Total cash disbursements including plan payments  11,751
                                                       -------
        Net cash flow                                  ($9,869)
                                                       =======

                      About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245).
Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert
LLP represent the Debtors in their restructuring efforts.
Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford,
Connecticut, serves as counsel to the Official Committee of
Unsecured Creditors.  No estimated assets have been listed in the
Debtors' schedules, however, the Debtors disclosed $308,000,000 in
total debts.  The Court confirmed the Debtor's plan on Nov. 30,
2007.  (Complete Retreats Bankruptcy News, Issue No. 42;
Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).


COMPLETE RETREATS: Files Operating Report for March 2008
--------------------------------------------------------

                  Complete Retreats, LLC, et al.
                    Monthly Operating Report
               For the Month Ended March 31, 2008

(a) Plan payments made during the month:  

      Administrative Expenses                               $0
      Secured Creditors                                      0
      Priority Creditors                                     0
      Unsecured Creditors                                    0
                                                        ------
        Total Plan Payments                                  0
                                                        ======

(b) Cash Flow Report:
      
      Total cash receipts                             $107,190
      Total cash disbursements including plan payments   5,000
                                                      --------
        Net cash flow                                 $102,190
                                                      ========

                      About Complete Retreats

Headquartered in Westport, Connecticut, Complete Retreats LLC
operates five-star hospitality and real estate management
businesses.  In addition to its mainline destination club
business, the Debtor also operates an air travel program for
destination club members, a villa business, luxury car rental
services, wine sales services, fine art sales program, and other
amenity programs for members.

Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245).
Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert
LLP represent the Debtors in their restructuring efforts.
Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford,
Connecticut, serves as counsel to the Official Committee of
Unsecured Creditors.  No estimated assets have been listed in the
Debtors' schedules, however, the Debtors disclosed $308,000,000 in
total debts.  The Court confirmed the Debtor's plan on Nov. 30,
2007.  (Complete Retreats Bankruptcy News, Issue No. 42;
Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).


DELTA FINANCIAL: Earns $35,070,523 in Month Ended March 31
----------------------------------------------------------

              Delta Financial Corp. and Subsidiaries
               Unaudited Consolidated Balance Sheet
                       As of March 31, 2008

Assets

Cash and cash equivalents                            $8,513,626
Mortgage loans held for sale, net                             0
Mortgage loans held for investment, net of
   discount and deferred fees                                 0
Less: allowance for loan losses                               0
                                                     ----------
Mortgage loans held for investment, net                       0
                                                     ----------
Trustee receivable                                            0
Accrued interest receivable                                   0
Excess cash flow certificates                                 0
Equipment, net                                                0
Accounts receivable                                  11,084,877
Prepaid and other assets                                355,791
Deferred tax asset                                            0
                                                    -----------
Total Assets                                        $19,954,295
                                                    ===========

Liabilities and Stockholder's Equity

Liabilities:

Bank payable                                                  0
Warehouse financing                                           0
Financing on mortgage loans
   held for investment, net                                   0
Other borrowings                                              0
Accrued interest payable                                      0
Accounts payable and other liabilities              $12,842,277
Deferred tax liability                                        0
                                                    -----------
Total Liabilities                                   $12,842,277

Stockholders' Equity:

Preferred stock - REIT                                        0
Common stock                                           $254,792
Additional paid-in capital                          158,301,751
Retained earnings (accumulated deficit)            (150,126,370)
Accumulated other comprehensive income (loss)                 0
Treasury stock, at cost                              (1,318,154)
                                                    -----------
Total stockholders' equity                           $7,112,018
                                                    -----------
Total liabilities and stockholders' equity          $19,954,295
                                                    ===========

              Delta Financial Corp. and Subsidiaries
          Unaudited Consolidated Statements of Operations
              Consolidated Statements of Operations
                    For the Three Months Ended
                          March 31, 2008


Interest income                                        $103,083
Interest expense                                     (1,281,150)
                                                    -----------
Net interest income                                  (1,178,066)
Provision for loan loss                                       0
                                                    -----------
Net interest income after provision for loan loss    (1,178,066)

Non-interest income

Net gain on sale of mortgage loans                     (190,828)
Other income                                         42,887,053
                                                    -----------
Total non-interest income                            42,696,224

Non-interest expense

Payroll and related costs                             1,717,839
General and administrative                            4,729,794
(Gain) loss on derivative instruments                         0
                                                    -----------
Total non-interest expense                            6,447,634

Income (loss) before income tax expense (benefit)    35,070,523
Provision for income tax expense (benefit)                    0
                                                    -----------
Net income (loss)                                   $35,070,523
                                                    ===========

The Debtors disclosed payments made to one retained professional
during March 2008.  The Debtors paid AlixPartners, LP, its
claims' agent, $18,519 in fees and $10,864 in expenses.

                      About Delta Financial

Founded in 1982, Delta Financial Corporation (NASDAQ: DFC) --
http://www.deltafinancial.com/-- is a Woodbury, New York-based
specialty consumer finance company that originates, securitizes
and sells non-conforming mortgage loans.

The company filed a chapter 11 petition on Dec. 17, 2007 (Bankr.
D. Del. Lead Case No. 07-11880).  On the same day, three
affiliates filed separate chapter 11 petitions -- Delta Funding
Corp., Renaissance Mortgage Acceptance Corp., and Renaissance
R.E.I.T. Investment Corp. -- (Bankr. D. Del. Case Nos. 07-11881 to
07-11883).

The Debtors selected Morrison & Foerster LLP as their general
bankruptcy counsel and David B. Stratton, Esq. and James C.
Carignan, Esq. at Pepper Hamilton LLP as their counsel.  The
Debtors hired AlixPartners LLP as their claims agent.  The
Official Committee of Unsecured Creditors retained Landis Rath &
Cobb LLP as its Delaware counsel.

The Debtors' amended consolidated quarterly financial condition as
of Sept. 30, 2007, showed $7,223,528,000 in total assets and
$7,108,232,000 in total liabilities.  The Debtors' petition listed
D.B. Structured Products Inc. as their largest unsecured creditor
holding a $19,500,000 claim.  The Court extended until June 16,
2008, the period during which the Debtors have the exclusive right
to file a plan of reorganization or liquidation.  (Delta Financial
Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000).


FEDDERS CORP: Files Report for the Month Ended February 29
----------------------------------------------------------
Fedders Corporation and its debtor-affiliates filed their monthly
operating report for February 2008.

For the month ended Feb. 29, 2008, the Debtors generated gross
sales of $4,493,000 and incurred a net loss of $658,000.

Total assets were $114,640,000, total current assets were
$49,914,000, total liabilities were $322,789,000, and total
stockholders' deficit was $208,149,000 as of Feb. 29, 2008.

A full-text copy of the Debtors' February 2008 report is available
for free at http://ResearchArchives.com/t/s?2b65

                     About Fedders Corporation

Based in Liberty Corner, New Jersey, Fedders Corporation --
http://www.fedders.com/-- manufactures and markets air
treatment products, including air conditioners, air cleaners,
dehumidifiers, and humidifiers.  The company has production
facilities in the United States in Illinois, North Carolina, New
Mexico, and Texas and international production facilities in the
Philippines, China and India.

The company filed for Chapter 11 protection on Aug. 22, 2007,
(Bankr. D. Del. Case No. 07-11182).  Its debtor-affiliates
filed for separate Chapter 11 cases.  Norman L. Pernick, Esq.,
Irving E. Walker, Esq., and Adam H. Isenberg, Esq., of Saul,
Ewing, Remick & Saul LLP, represent the Debtors in their
restructuring efforts.  The Debtors have selected Logan & Company
Inc. as claims and noticing agent.  The Official Committee of
Unsecured Creditors is represented by Brown Rudnick Berlack
Israels LLP.

The Debtors asked the Court to stretch until May 31, 2008, their
exclusive plan filing period.


HOMEBANC MORTGAGE: Posts March 2008 Net Loss of $2,128,000
----------------------------------------------------------

          HomeBanc Mortgage Corporation and Subsidiaries
               Unaudited Consolidated Balance Sheet
                      As of March 31, 2008

                              ASSETS

Cash                                                 $6,517,000
Restricted cash                                               0
Mortgage loans held for sale, net                     4,099,000
Mortgage loans held for investment, net                       0
Mortgage servicing rights                                     0
Receivable from custodian                                     0
Trading securities                                      500,000
Securities available for sale                                 0
Securities held to maturity                                   0
Accrued interest receivable                                   0
Premises and equipment, net                                   0
Goodwill, net                                                 0
Deferred tax asset, net                                       0
Accounts receivable from affiliates                           0
Investment in subsidiaries                                    0
Other Assets                                         13,361,000
                                                ---------------
TOTAL ASSETS                                        $24,477,000
                                                ===============

                       LIABILITIES & EQUITY

Warehouse lines of credit                                    $0  
Repurchase agreements                                         0
Loan funding payable                                  1,478,000
Accrued interest payable                                      0
Accrued expenses                                      5,545,000
Other accounts payable                                        0
Accounts payable to affiliates                                0
Collaterized debt obligations                                 0
Junior subordinated debentures representing         175,260,000
  obligations for trust preferred securities
                                                ---------------
Total liabilities                                   182,283,000

Minority interest                                        64,000

Shareholders Equity:
  Preferred stock                                    47,992,000
  Common stock                                          571,000
  Additional paid-in capital                        278,865,000
  Accumulated deficit                              (467,394,000)
  Treasury stock                                    (17,904,000)
  Accumulated other comprehensive (loss) income               0
                                                ---------------
Total shareholder's equity                         (157,870,000)
                                                ---------------
TOTAL LIABILITIES & EQUITY                          $24,477,000
                                                ===============

          HomeBanc Mortgage Corporation and Subsidiaries
          Unaudited Consolidated Statement of Operations
                For 3 Months Ended March 31, 2008

REVENUES
MBS interest income                                    $507,000
Other miscellaneous income                              131,000
                                                ---------------
Total revenues                                          638,000

EXPENSES
Professionals                                         1,763,000
Insurance                                                     0
Contract personnel                                       79,000
Data facility                                                 0
Compensation and benefits                               312,000
Financial systems                                        77,000
Medical insurance run-off payments                      176,000
Loan sales expense                                       91,000
U.S. trustee fees                                        32,000
Office rental                                            23,000
Other misc. operating expenses                          213,000
                                                ---------------
Total expenses                                        2,766,000
                                                ---------------
Income tax expense                                            0
                                                ---------------
Net loss                                            ($2,128,000)
                                                ===============

          HomeBanc Mortgage Corporation and Subsidiaries
               Consolidated Statement of Cash Flows
            For the 3 Month Period Ended March 31, 2008

OPERATING ACTIVITIES
Net loss                                            ($2,128,000)

Adjustments to reconcile net loss to net cash
  (used in) provided by operating activities:
  (Increase) decrease in mortgage loans held for      1,312,000
    sale, net
  Decrease (interest) in other assets                    (1,000)
  Decrease in other liabilities                         (55,000)
                                                ---------------
Net cash (used in) provided by operating               (872,000)
  activities

INVESTING ACTIVITIES
Net cash provided by (used in) investing                      0
  activities

FINANCING ACTIVITIES
Net cash (used in) provided by financing                      0
  activities
                                                ---------------
Net increase (decrease) in cash                        (872,000)
Cash and cash equivalents at beginning of period      7,389,000
                                                ---------------
Cash and cash equivalents at end of period           $6,517,000
                                                ===============

                     About HomeBanc Mortgage

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

HomeBanc Mortgage together with five affiliates filed for chapter
11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079
through 07-11084).  Joel A. Waite, Esq., at Young, Conaway,
Stargatt & Taylor was selected by the Debtors to represent them in
these cases.  The Official Committee of Unsecured Creditors
selected the firm Otterbourg, Steindler, Houston and Rosen, P.C.
as its counsel.  The Debtors' financial condition as of June 30,
2007, showed total assets of $5,100,000,000 and total liabilities
of $4,900,000,000.  The Debtors' exclusive period to file a plan
ends on May 6, 2008.  (HomeBanc Bankruptcy News, Issue No. 23;
Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/
or 215/945-7000).


KITTY HAWK: Incurs $196,534 Net Loss in March 2008
--------------------------------------------------
Kitty Hawk Inc.'s balance sheet in its March 2008 monthly
operating report shows total assets of $42,145,643, total
liabilities of $2,046,459, and total stockholders' equity of
$40,099,184.

For the month of March 2008, revenue was zero and incurred a net
loss of $196,534.

Cash at the beginning of the month was $6,297,770, total receipts
were $228,848, total cash available was $6,526,618, total
operating disbursements were $567,085, total disbursements were
$567,085, and cash at the end of the month was $5,959,533.

A full-text copy of the company's March 2008 operating report is
available for free at http://ResearchArchives.com/t/s?2b66

                       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.


KITTY HAWK: KH Ground Files January 2008 Operating Report
---------------------------------------------------------
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 January 2008.

Its January 2008 balance sheet shows total assets of $0, total
liabilities of $250, and total stockholders' deficit of $250.

For the month, revenue and net income was zero.

Cash at the beginning and end of the month was zero.

A full-text copy of KH Ground Inc.'s January 2008 operating report
is available for free at http://ResearchArchives.com/t/s?2b6b

                       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.


KITTY HAWK: KH Ground Files February 2008 Operating Report
----------------------------------------------------------
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 February 2008.

Its February 2008 balance sheet shows total assets of $0, total
liabilities of $250, and total stockholders' deficit of $250.

For the month, revenue and net income was zero.

Cash at the beginning and end of the month was zero.

A full-text copy of KH Ground Inc.'s February 2008 operating
report is available for free at
http://ResearchArchives.com/t/s?2b6b

                       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.


KITTY HAWK: KH Ground Files March 2008 Operating Report
-------------------------------------------------------
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 March 2008.

Its March 2008 balance sheet shows total assets of $0, total
liabilities of $575, and total stockholders' deficit of $575.

For the month, revenue was zero and net loss was $325.

Cash at the beginning and end of the month was zero.

A full-text copy of KH Ground Inc.'s March 2008 operating report
is available for free at http://ResearchArchives.com/t/s?2b6b

                       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.


KITTY HAWK: Kitty Hawk AirCargo Files January 2008 Report
---------------------------------------------------------
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 January 2008.

Its January 2008 balance sheet shows total assets of $10,012,401,
and total liabilities of $7,833,935, and total stockholders'
equity of $2,178,466.

For the month, revenue was $36,900 and net loss was $263,212.

Cash at the beginning of the month was $564,506 and cash at the
end of the month was $142,416.

A full-text copy of Kitty Hawk AirCargo Inc.'s January 2008 report
is available for free at http://ResearchArchives.com/t/s?2b6a

                       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.


KITTY HAWK: Kitty Hawk AirCargo Files February 2008 Report
----------------------------------------------------------
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 February 2008.

Its February 2008 balance sheet shows total assets of $9,735,444,
total liabilities of $7,764,971 and total stockholders' equity of
$1,970,473.

For the month, revenue was zero and net loss was $207,993.

Cash at the beginning of the month was $142,416 and cash at the
end of the month was $199,455.

A full-text copy of Kitty Hawk AirCargo Inc.'s February 2008
report is available for free at
http://ResearchArchives.com/t/s?2b6a

                       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.


KITTY HAWK: Kitty Hawk AirCargo Files March 2008 Report
-------------------------------------------------------
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 March 2008.

Its March 2008 balance sheet shows total assets of $10,205,561,
total liabilities of $7,707,516, and total stockholders' equity of
$2,498,045.

For the month, revenue was zero and net income was $527,572.

Cash at the beginning of the month was $199,455 and cash at the
end of the month was $400,376.

A full-text copy of Kitty Hawk AirCargo Inc.'s March 2008 report
is available for free at http://ResearchArchives.com/t/s?2b6a

                       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.


KITTY HAWK: Kitty Hawk Cargo Files January 2008 Report
------------------------------------------------------
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 January 2008.

Its January 2008 balance sheet shows total assets of $3,910,498,
total liabilities of $27,088,121, and total stockholders' deficit
of $23,177,623.

For the month, revenue was $31,385 and net profit was $2,675,831.

Cash at the beginning of the month was $68,445 and cash at the end
of the month was $23,495.

A full-text copy of Kitty Hawk Cargo Inc.'s January 2008 report is
available for free at http://ResearchArchives.com/t/s?2b69

                       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.


KITTY HAWK: Kitty Hawk Cargo Files February 2008 Report
-------------------------------------------------------
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 February 2008.

Its February 2008 balance sheet shows total assets of $165,320,
total liabilities of $23,516,405, and total stockholders' deficit
of $23,351,085.

For the month, revenue was $43 and net loss was $173,462.

Cash at the beginning of the month was $23,495 and cash at the end
of the month was $2,452.

A full-text copy of Kitty Hawk Cargo Inc.'s February 2008 report
is available for free at http://ResearchArchives.com/t/s?2b69

                       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.


KITTY HAWK: Kitty Hawk Cargo Files March 2008 Report
----------------------------------------------------
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 March 2008.

Its March 2008 balance sheet shows total assets of $106,458, total
liabilities of $23,606,944, total stockholders' deficit of
$23,500,486.

For the month, revenue was a negative $14,601 and net loss was
$149,401.

Cash at the beginning of the month was $2,452 and cash at the end
of the month was $37,931.

A full-text copy of Kitty Hawk Cargo Inc.'s March 2008 report is
available for free at http://ResearchArchives.com/t/s?2b69

                       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.


KITTY HAWK: Kitty Hawk Ground Files January 2008 Report
-------------------------------------------------------
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 January 2008.

Its January 2008 balance sheet shows total assets of $3,768,047,
total liabilities of $27,161,786 and total stockholders' deficit
of $23,393,739.

Revenue for the month was a negative $2,029, and net loss for the
month was $756,833.

Cash at the beginning of the month was $68,770, and cash at the
end of the month was $123,003.

A full-text copy of Kitty Hawk Ground Inc.'s January 2008 report
is available for free at http://ResearchArchives.com/t/s?2b67

                       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.


KITTY HAWK: Kitty Hawk Ground Files February 2008 Report
--------------------------------------------------------
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 February 2008.

Its February 2008 balance sheet shows total assets of $2,450,630,
total liabilities of $26,688,560, and total stockholders' deficit
of $24,237,930.

Net revenue for the month was a negative $7,194 and net loss for
the month was $844,191.

Cash at the beginning of the month was $123,003 and cash at the
end of the month was $2,562.

A full-text copy of Kitty Hawk Ground Inc.'s February 2008 report
is available for free at http://ResearchArchives.com/t/s?2b67

                       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.


KITTY HAWK: Kitty Hawk Ground Files March 2008 Report
-----------------------------------------------------
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 March 2008.

Its March 2008 balance sheet shows total assets of $2,088,390,
total liabilities of $26,452,372, and total stockholders' deficit
of $24,363,982.

Net revenue for the month was a negative $26,914 and net loss for
the month was $126,052.

Cash at the beginning of the month was $2,562 and cash at the end
of the month was $53,024.

A full-text copy of Kitty Hawk Ground Inc.'s March 2008 report is
available for free at http://ResearchArchives.com/t/s?2b67

                       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.


LEVITZ FURNITURE: Earns $331,000 in Month Ended April 6, 2008
-------------------------------------------------------------

                           PLVTZ, Inc.
                          Balance Sheet
                        As of April 6, 2008

ASSETS
  Current Assets
  Cash                                               $375,000
  Accounts receivable, net                            376,000
                                                 ------------
  Total current assets                                751,000

Other assets                                        4,275,000
                                                 ------------
   TOTAL ASSETS                                    $5,026,000
                                                 ============

               Liabilities and Shareholders' Equity


Liabilities Not Subject to Compromise
  Current Liabilities:
     Accounts payable trade                        $5,585,000
     Accrued expenses                                 927,000
     Customer Deposits                              1,080,000
                                                 ------------
     Total current liabilities                      7,592,000

Liabilities Subject to Compromise          
  Term loan B                                      20,715,000
  Trade and other miscellaneous claims             45,496,000
  Customer Deposit                                  1,558,000
                                                 ------------
  Total                                            67,769,000
                                                 ------------
     TOTAL LIABILITIES                             75,361,000
                                                 ============

Shareholder's (deficit):
     Preferred stock                               47,000,000
     Class A Common stock                         139,030,000
     Class B Common stock                          10,000,000
     Retained (deficit)                          (266,365,000)
                                                 ------------
     Shareholder's deficit                        (70,335,000)

     TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT     $5,026,000
                                                 ============

                            PLVTZ, Inc.
                      Statement of Operations
             For the period March 3 to April 6, 2008

Selling, operating and administrative expenses     $2,194,000
Reorganization costs                               (2,525,000)
                                                 ------------
Net Income                                           $331,000
                                                 ============

                             PLVTZ, Inc.
                        Statement of Cash Flows
             For the period March 3 to April 6, 2008

Cash flows used in operating activities:
  Cash received from customers                     $2,178,000
  Cash received from sales agent                    1,954,000
  Cash paid to suppliers and employees             (9,665,000)
                                                 ------------
   Net cash used in operating activities           (5,533,000)
                                                 ============

Net decrease in cash and cash equivalents          (5,533,000)
Cash and cash equivalents at beginning of month     5,158,000
                                                 ------------
Cash and cash equivalents at end of month            $375,000
                                                 ============

                   About Levitz Furniture/PVLTZ

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 expired on
March 7, 2008.  (Levitz Bankruptcy News, Issue No. 39; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).


MOVIE GALLERY: Earns $5,656,000 for the Month of March 2008
-----------------------------------------------------------

                    Movie Gallery, Inc.
            Unaudited Consolidated Balance Sheet
            (Excluding International Operations)
                    As Of March 9, 2008

ASSETS
Current Assets
  Cash & Cash Equivalents                            $66,732,000
  Merchandise Inventory                              151,271,000
  Prepaid Expenses                                    35,083,000
  Store Supplies and Other                            15,538,000
                                                 ---------------
     Total Current Assets                            268,624,000

Rental inventory, net                                219,515,000
Property, furnishings and equipment, net              94,094,000
Other intangibles, net                                20,205,000
Deferred income tax asset, net                         1,153,000
Deposits and other assets                             26,743,000
Investment in subsidiaries                            22,868,000
                                                 ---------------
     Total Assets                                    653,202,000
                                                 ===============

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
  Current maturities of long-term obligations        867,220,000
  Accounts payable                                    37,443,000
  Intercompany payable                                (9,426,000)
  Accrued liabilities                                 58,313,000
  Accrued payroll                                     22,041,000
  Accrued interest                                    13,111,000
  Deferred revenue                                    38,794,000
                                                 ---------------
     Total Current Liabilities                     1,027,496,000
Other Accrued Liabilities                             17,220,000
                                                 ---------------
     Total Liabilities Not Subject to Compromise   1,044,716,000

Liabilities Subject to Compromise
  Accounts payable                                    35,337,000
  Accrued liabilities                                 17,244,000
  Accrued utilities                                    4,337,000
  Accrued interest                                    16,410,000
  Long-term obligations                              314,311,000
  Lease liability on closed stores                    70,588,000
                                                 ---------------
     Total Liabilities Subject to Compromise         458,227,000
                                                 ---------------
     Total Liabilities                             1,502,943,000

Stockholders' Deficit
  Preferred stock, $0.10 par value; 2000 shares
    authorized, no shares or issues outstanding                0
  Common stock, $0.001 par value; 65,000 shares
    authorized, 32,282 shares issued
    and outstanding                                       32,000
  Additional paid-in capital                         200,069,000
  Accumulated deficit                             (1,057,214,000)
  Accumulated other comprehensive income               7,372,000
                                                 ---------------
     Total Stockholders' Deficit                    (849,741,000)
                                                 ---------------
     Total Liabilities and Stockholders' Deficit    $653,202,000
                                                 ===============

                    Movie Gallery, Inc.
       Unaudited Consolidated Statement of Operations
            (Excluding International Operations)
             For The Period Ended March 9, 2008

Revenue
  Rentals                                           $132,627,000
  Product Sales                                       44,594,000
                                                 ---------------
                                                     177,221,000

Cost of Sales
  Cost of rental revenues                             42,682,000
  Cost of product sales                               33,326,000
                                                 ---------------
                                                      76,008,000

Gross Profit                                         101,213,000

Operating Costs and Expenses
  Store operating expenses                            73,161,000
  General and administrative                          10,431,000
  Amortization of intangibles                            257,000
                                                 ---------------
                                                      83,849,000
                                                 ---------------
Operating Income (Loss)                               17,364,000

  Interest Expense, net                                7,973,000
    Intercompany interest expense, net                         0
                                                 ---------------
     Income (loss) before reorganization items
     and income taxes                                  9,391,000

Reorganization items, net                              3,738,000
                                                 ---------------
Income (loss) before income taxes                      5,653,000

Income taxes                                              (3,000)
                                                 ---------------
Net Income (Loss)                                     $5,656,000
                                                 ===============

                     Movie Gallery, Inc.
        Unaudited Consolidated Statement of Cash Flows
              (Excluding International Operations)
               For The Period Ended March 9, 2008

Operating Activities
   Net income (loss)                                  $5,700,000

Adjustments to Reconcile Changes in Net Assets
   to Net Cash Provided by Operating Activities:
   Rental Inventory Amortization                      31,183,000
   Purchases of Rental Inventory                     (26,041,000)
   Purchases of Rental Inventory-Base Stock              (21,000)
   Reorganization Items, net                            (540,000)
   Depreciation and Intangibles Amortization           3,340,000
   Loss on Closed Store Write-Offs                        31,000
   Amortization of Debt Issuance Cost                    558,000

Changes in Operating Assets and Liabilities
   Merchandise Inventory                              (8,668,000)
   Other Current Assets                                4,458,000
   Deposits and Other Assets                             214,000
   Accounts Payable                                      423,000
   Accrued Interest                                    1,785,000
   Lease Liability on Closed Stores                    2,197,000
   Other Accrued Liabilities and Deferred Revenue     (2,879,000)
                                                 ---------------
Net Cash Provided by Operating Activities             11,740,000

Investing Activities
   Purchases of Property, Furnishings and
      Equipment, net                                    (346,000)
                                                 ---------------
Net Cash Used In Investing Activities                   (346,000)

Financing Activities
   Change in Intercompany Receivable                    (308,000)
   Long-term debt financing fees                               0
   Principal payments on DIP credit facility                   0
                                                 ---------------
Net Cash Used In Financing Activities                   (308,000)

Increase (Decrease) in Cash and Cash Equivalents      11,086,000
Cash and cash equivalents at beginning of period      55,646,000
                                                 ---------------
Cash and cash equivalents at end of period           $66,732,000
                                                 ===============

                       About Movie Gallery

Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment specialty
retailer.  The company owns and operates 4,600 retail stores that
rent and sell DVDs, videocassettes and video games.

The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to
07-33853).  Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M.
Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors.
Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak
Rock LLP, is the Debtors' local counsel.  The Debtors' claims &
balloting agent is Kurtzman Carson Consultants LLC.  When the
Debtors' filed for protection from their creditors, they listed
total assets of $891,993,000 and total liabilities of
$1,419,215,000.

The Official Committee of Unsecured Creditors has selected Robert
J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq.,
and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as
its lead counsel, and Brian F. Kenney, Esq., at Miles &
Stockbridge PC, as its local counsel.

The Debtors' spokeswoman Meaghan Repko said that the company does
not expect to exit bankruptcy protection before the second quarter
of 2008.  The Court confirmed the Debtors' Second Amended Chapter
11 Plan of Reorganization on April 9, 2008.  (Movie Gallery
Bankruptcy News Issue No. 26; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)


NETBANK INC: Delivers March 2008 Monthly Operating Report
---------------------------------------------------------
NetBank Inc. submitted its monthly operating report for the period
beginning March 1, 2008, through March 31, 2008.

Funds at the beginning of the period were $6,265,363, total
receipts for the period were $6,276,536, total disbursements for
the period were $213,705 and ending balance was $6,062,831.

A full-text copy of the Debtor's March 2008 report is available
for free at http://ResearchArchives.com/t/s?2b64

                          About NetBank

Headquartered in Jacksonville, Florida, NetBank Inc. --
http://www.netbank.com/-- is a financial holding company of
Netbank, the United States' oldest Internet bank serving retail
and business customers in all 50 states.  NetBank Inc. does retail
banking, mortgage banking, business finance, and providing ATM and
merchant processing services.

The company filed for Chapter 11 protection on Sept. 28, 2007
(Bankr. M.D. Fla. Case No. 07-04295).  Alan M. Weiss, Esq., at
Holland & Knight LLP.  The U.S. Trustee for Region 21 appointed
six creditors to serve on an Official Committee of Unsecured
Creditors of the Debtor's case.  Rogers Towers and Kilpatrick
Stockton LLP represent the Committee in this case.  As of
Sept. 25, 2007, the Debtor listed total assets at $87,213,942
and total debts at $42,245,857.

The Debtor asked the Court to exclusively file its reorganization
plan until May 5, 2008.


PACIFIC LUMBER: Scotia Dev't Files March 2008 Operating Report
--------------------------------------------------------------
Scotia Development LLC, debtor-affiliate of The Pacific Lumber
Company, filed its monthly operating report for the period ended
March 31, 2008, disclosing:

                  Scotia Development LLC, et al.
                    Consolidated Balance Sheet
                       As of March 31, 2008
        
ASSETS
Current Assets
   Cash                                             $2,342,745
   Accounts receivable, net                          5,857,780
   Inventory: lower cost or market                  13,763,926
   Prepaid expenses                                  5,275,428
   Prepaid Restructuring                               200,000
   Investments                                               0
   Other                                               264,316
                                                  ------------
   Total Current Assets                             27,704,194
        
Property, Plant & Equipment                        186,891,739
Less: Accumulated Depreciation                    (120,683,388)
                                                  ------------
Net book value of property & plant                  66,208,351
Other Assets
   Notes Receivable                                    594,738
   Deferred Financing Costs                          4,390,198
   Long-term Investments                             3,447,356
   Restricted Cash                                   2,592,844
   Restricted Cash -- L.C. Collateralization        10,862,851
   Deferred Tax Assets                              13,313,381
                                                  ------------
     TOTAL ASSETS                                 $129,113,914
                                                  ============
        
LIABILITIES & OWNERS EQUITY
Postpetition Liabilities                           
   Trade accounts payable                           $1,335,769
   Tax Payable
      Federal payroll taxes                            116,955
      State payroll taxes                              130,206
      Ad valorem taxes                                 267,921
      Other taxes                                    1,311,773
                                                  ------------
   Total taxes payable                               1,826,854
        
   Secured debt postpetition                        75,000,000
   Accrued interest payable                          3,249,516
   Accrued professional fees                         3,300,494
   Other accrued liabilities
      Trade Accruals                                   460,886
      Compensation and benefits                      1,614,912
      Other accrued                                  2,428,631
      Due to (from) affiliate/parent                 7,586,652
                                                  ------------
      Total Postpetition Liabilities                96,803,714

Prepetition Liabilities
   Notes payable - Secured                          84,277,251
   Priority debt                                     3,444,754
   Federal income tax                                  (17,006)
   FICA/ Withholding                                         0
   Unsecured debt                                    3,016,106
   Other                                            27,804,898
   Due to Affiliate/Parent                          41,661,505
                                                  ------------
      Total Prepetition Liabilities                160,187,508
                                                  ------------
      Total Liabilities                            256,991,222

Owner's Equity (Deficit)
   Equity in Affiliates                            556,855,433
   Common Stock                                          1,001
   Additional Paid-in Capital                      275,546,288
   Retained Earnings: Filing Date                 (792,985,229)
   Retained Earnings: Post Filing Date            (167,294,801)
                                                  ------------
Total Owner's Equity                              (127,877,308)
                                                  ------------
TOTAL LIABILITIES & OWNERS EQUITY                 $129,113,914
                                                  ============        

                  Scotia Development LLC, et al.
                       Statement of Income
               For the Period Ended March 31, 2008
        
Revenues                                          $130,633,137
Total cost of revenues                             148,151,351
                                                  ------------
Gross Profit                                       (17,518,213)

Operating Expenses
   Selling & Marketing                               1,284,232
   General & Administrative                          3,767,671
   Insiders Compensation                             1,589,580
   Idle Facilities                                   1,731,487
   Environmental                                       430,982
                                                  ------------
      Total Operating Expenses                       8,803,953  
                                                  ------------
Income before interest, depreciation, tax          (26,322,166)
Interest Expense                                    22,229,308
Depreciation                                        11,870,832
Other (Income) Expenses                              6,385,940
Amortization of Deferred Financing Costs             5,731,864
Restructuring
   Professional Fees                                15,678,095
   Other                                             1,249,352
Equity Loss (Earnings) in Subsidiary                77,825,939
Total Interest, Depreciation & Other Items         140,971,329
                                                  ------------
Net Income Before Taxes                           (167,293,495)
Federal Income Tax                                       1,306    
                                                  ------------
Net Income (Loss)                                ($167,294,801)
                                                  ============
                
                  Scotia Development LLC, et al.
                 Cash Receipts and Disbursements
                For the Month Ended March 31, 2008

Receipts
   Cash Sales                                       $1,216,730
   Collection of Accounts Receivable               133,162,910
   Loans & Advances                                 24,932,629
   Sale of Assets                                    2,183,879
   Other                                             8,691,358
                                                  ------------
      Total Receipts                               170,187,505
        
Disbursements
   Net payroll                                      14,994,246
   Payroll taxes paid                                5,895,323
   Sales, use & other taxes paid                     1,117,054
   Secured/rentals/leases                            2,686,988
   Utilities & telephone                             1,206,303
   Insurance                                        11,004,842
   Cost of goods sold                               81,640,894
   Vehicle expenses                                  1,286,892
   Travel & entertainment                              401,037
   Repairs, maintenance & supplies                   9,543,597
   Administrative & selling                         10,991,222
   Interest                                          9,306,654
   Other                                             2,888,629
                                                  ------------
      Total Disbursements from operations          152,963,681
        
Professional fees                                   12,607,563
U.S. Trustee fees                                       70,786     
Other reorganization expenses                        3,467,438
                                                  ------------
   Total Disbursements                             169,109,467
                                                  ------------
Net Cash Flow                                        1,078,038
                                                  ------------
Cash, at the beginning of the month                  1,264,707
                                                  ------------
Cash, at the end of the month                       $2,342,745
                                                  ============

                     About Pacific Lumber

Based in Oakland, California, The Pacific Lumber Company --
http://www.palco.com/-- and its subsidiaries operate in several
principal areas of the forest products industry, including the
growing and harvesting of redwood and Douglas-fir timber, the
milling of logs into lumber and the manufacture of lumber into a
variety of finished products.

Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.

Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.

Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032).  Jack L. Kinzie, Esq., at Baker
Botts LLP, is Pacific Lumber's lead counsel.  Nathaniel Peter
Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan,
Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific
Lumber's co-counsel.  Kathryn A. Coleman, Esq., and Eric J.
Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia
Pacific's lead counsel.   Kyung S. Lee, Esq., Esq., at Diamond
McCarthy LLP is Scotia Pacific's co-counsel, replacing Porter &
Hedges LLP.  John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones
LLP, represents the Official Committee of Unsecured Creditors.

When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335.

The Debtors filed their Joint Plan of Reorganization on Sept. 30,
2007, which was amended on Dec. 20, 2007.  Four other parties-in-
interest have filed competing plans for the Debtors -- The Bank of
New York Trust Company, N.A., as Indenture Trustee for the Timber
Notes; the Official Committee of Unsecured Creditors; Marathon
Structured Finance Fund L.P, the Debtors' DIP Lender and Agent
under the DIP Credit Facility; and the Heartlands Commission,
which represents the tribal members of the Bear River Band of
Rohnerville Rancheria and PALCO employees.

The Debtors' exclusive plan filing period expired on Feb. 29,
2008.  (Scotia/Pacific Lumber Bankruptcy News, Issue No. 57;
http://bankrupt.com/newsstand/or 215/945-7000).


PACIFIC LUMBER: Scotia Pacific Files March 2008 Operating Report
----------------------------------------------------------------
Scotia Pacific Company LLC, debtor-affiliate of The Pacific Lumber
Company, filed its monthly operating report for the period ended
March 31, 2008, disclosing:

                      Scotia Pacific Company LLC
                      Consolidated Balance Sheet
                         As of March 31, 2008

4ASSETS
Current Assets
   Cash                                            $36,012,821
   Accounts receivable, net                          8,476,643
   Inventory: lower cost or market                   2,114,014
   Prepaid expenses                                  5,887,563
   Prepaid Restructuring                               774,671
   Investments                                               0
   Other                                               784,084
                                                  ------------
      Total Current Assets                          54,139,797   
                                                     

Property, Plant & Equipment                        602,269,780
Less: Accumulated Depreciation                    (361,438,191)
                                                  ------------
Net book value of property & plant                 240,831,588      

Other Assets
   Capitalized Expenses                              9,672,247
                                                  ------------
      TOTAL ASSETS                                $304,553,632
                                                  ============

LIABILITIES & OWNERS EQUITY
Postpetition Liabilities
   Trade accounts payable                              157,920
   Tax payable
      Federal payroll taxes                             14,039
      State payroll taxes                               28,140
      Ad valorem taxes                                 205,000
      Other taxes                                      222,158
                                                  ------------
         Total taxes payable                           469,338  
                                              
      Secured debt postpetition                              0
      Accrued interest payable                      64,513,169
      Accrued professional fees                      4,894,597
      Other accrued liabilities
         Unsecured Debt                              2,497,543
         Payroll                                       657,388
         Other                                         231,792
                                                  ------------        
      Total Postpetition Liabilities                73,421,747  
                                                  
Prepetition Liabilities
   Notes payable - Secured                         767,406,547
   Priority debt                                        79,064
   Federal income tax                                        0
   FICA/ Withholding                                         0
   Unsecured debt                                    3,357,954
   Other                                                     0
                                                  ------------
      Total Prepetition Liabilities                770,843,566
                                                  ------------
      Total Liabilities                            844,265,313

Owner's Equity (Deficit)
   Preferred Stock                                           0
   Common Stock                                     20,384,905
   Additional Paid-in Capital                      179,838,186
   Retained Earnings: Filing Date                 (662,058,832)
   Retained Earnings: Post Filing Date             (77,875,939)
                                                  ------------
Total Owner's Equity                              (539,711,681)
                                                  ------------
TOTAL LIABILITIES & OWNERS EQUITY                 $304,553,632
                                                  ============

                      Scotia Pacific Company LLC
                          Statement of Income
                  For the Period Ended March 31, 2008


Revenues                                            $1,975,646
Total cost of revenues                               1,214,097

Gross Profit                                           761,549        

Operating Expenses
   Selling & Marketing                                       0
   General & Administrative                            193,216
   Insiders Compensation                                     0
   Professional Fees                                         0
   Idle Facilities                                           0
   Environmental                                             0
                                                  ------------
      Total Operating Expenses                         193,216
                                                  ------------
Income before interest, depreciation, tax              568,333
Interest Expense                                     4,906,812
Depreciation                                           552,212
Other (Income) Expenses                                 (1,175)
Amortization of Deferred Financing Costs                     0
Restructuring
   Professional Fees                                 2,456,168
   Other                                                36,987
Equity Loss (Earnings) in Subsidiary                         0
Total Interest, Depreciation & Other Items           7,917,715
                                                  ------------
Net Income Before Taxes                             (7,349,382)
Federal Income Tax                                           0
                                                  ------------
Net Income (Loss)                                 ($7,349,382)
                                                  ============

                      Scotia Pacific Company LLC
                    Cash Receipts and Disbursements
                  For the Month Ended March 31, 2008

Receipts
   Cash Sales                                               $0
   Collection of Accounts Receivable                         0
   Loans & Advances                                          0
   Sale of Assets                                            0
   Interest Income                                     133,637
   Log Sales to Palco less Reimbursable              2,472,708
   Other                                               249,204
                                                  ------------
      Total Receipts                                 2,855,549        

Disbursements
   Net payroll                                         296,702
   Payroll taxes paid                                   79,138
   Sales, use & other taxes paid                             0
   Secured/rentals/leases                               27,277
   Utilities & telephone                                   346
   Insurance                                            25,932
   Cost of goods sold                                  743,568
   Vehicle expenses                                        749
   Travel & entertainment                                    0
   Repairs, maintenance & supplies                           0
   Administrative & selling                            385,581
   Decking, logging & hauling                        1,577,846
   Other                                                     0
                                                  ------------
      Total Disbursements from operations            3,137,139      

Professional fees                                    3,737,029
U.S. Trustee fees                                            0
Interest                                               185,030
Other reorganization expenses                                0
                                                  ------------
      Total Disbursements                            7,059,198  
                                                  ------------
Net Cash Flow                                       (4,203,649)
                                                  ------------
Cash, at the beginning of the month                 40,216,470
                                                  ------------
Cash, at the end of the month                      $36,012,821
                                                  ============

                     About Pacific Lumber

Based in Oakland, California, The Pacific Lumber Company --
http://www.palco.com/-- and its subsidiaries operate in several
principal areas of the forest products industry, including the
growing and harvesting of redwood and Douglas-fir timber, the
milling of logs into lumber and the manufacture of lumber into a
variety of finished products.

Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.

Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.

Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032).  Jack L. Kinzie, Esq., at Baker
Botts LLP, is Pacific Lumber's lead counsel.  Nathaniel Peter
Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan,
Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific
Lumber's co-counsel.  Kathryn A. Coleman, Esq., and Eric J.
Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia
Pacific's lead counsel.   Kyung S. Lee, Esq., Esq., at Diamond
McCarthy LLP is Scotia Pacific's co-counsel, replacing Porter &
Hedges LLP.  John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones
LLP, represents the Official Committee of Unsecured Creditors.

When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335.

The Debtors filed their Joint Plan of Reorganization on Sept. 30,
2007, which was amended on Dec. 20, 2007.  Four other parties-in-
interest have filed competing plans for the Debtors -- The Bank of
New York Trust Company, N.A., as Indenture Trustee for the Timber
Notes; the Official Committee of Unsecured Creditors; Marathon
Structured Finance Fund L.P, the Debtors' DIP Lender and Agent
under the DIP Credit Facility; and the Heartlands Commission,
which represents the tribal members of the Bear River Band of
Rohnerville Rancheria and PALCO employees.

The Debtors' exclusive plan filing period expired on Feb. 29,
2008.  (Scotia/Pacific Lumber Bankruptcy News, Issue No. 57;
http://bankrupt.com/newsstand/or 215/945-7000).

                             *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
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                             *********

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