TCR_Public/080614.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, June 14, 2008, Vol. 12, No. 141

                             Headlines

ACCEPTANCE INSURANCE: Posts $48,730 Net Loss in May 2008
AMERICAN HOME: Posts $19,635,706 Net Loss in March 2008
AMERICAN HOME: AHMC Files March 2008 Monthly Operating Report
AMERICAN HOME: AHMAI Files March 2008 Monthly Operating Report
AMERICAN HOME: AHMSI Files March 2008 Monthly Operating Report

HANCOCK FABRICS: Incurs $1,869,000 Net Loss in May 2008
KIMBALL HILL: Files Schedules of Assets and Liabilities
KIMBALL HILL: Houston LLC Files Schedules of Assets and Debts
KIMBALL HILL: Illinois LLC Files Schedules of Assets and Debts
PROPEX INC: Incurs May 2008 Net Loss of $10,700,000

REFCO LLC: Case Trustee Submits April 2008 Monthly Report
REUNION INDUSTRIES: Earns $41,392,000 in Month Ended April 30

                             *********

ACCEPTANCE INSURANCE: Posts $48,730 Net Loss in May 2008
--------------------------------------------------------
Acceptance Insurance Companies, Inc. had total assets of
$22,593,404, total liabilities of $138,183,184, total
stockholders' deficit of $115,589,780 as of May 31, 2008.

The Debtor generated total revenue of $1,723, and incurred a
net loss of $48,730 for the month ended May 31, 2008.

A full-text copy of the Debtor's May 2008 report is available
for free at http://ResearchArchives.com/t/s?2df9

                     About Acceptance Insurance

Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies, Inc. -- http://www.aicins.com/-- owns, either directly
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.

The company filed for chapter 11 protection on Jan. 7, 2005
(Bankr. D. Nebr. Case No. 05-80059).  The Debtor's affiliates --
Acceptance Insurance Services, Inc. and American Agrisurance, Inc.
-- each filed chapter 7 petitions (Bankr. D. Nebr. Case Nos.
05-80056 and 05-80058) on Jan. 7, 2005.  John J. Jolley, Esq.,
at Kutak Rock LLP, represents the Debtor in its restructuring
efforts.  Lawyers at McGrath North Mullin & Kratz PC LLO.
represent the the Official Committee of Unsecured Creditors in
Acceptance Insurance's case.  As of December 2007, the Debtor
listed $36,326,172 in total assets and $138,187,943 in total
debts.


AMERICAN HOME: Posts $19,635,706 Net Loss in March 2008
-------------------------------------------------------

               American Home Mortgage Investment Corp.
                  Statement of Financial Condition
                    As of March 31, 2008

Assets:
   Cash and cash equivalents                          $5,522,331
   Restricted cash                                   150,799,967
   Accounts receivable                                 3,700,171
   Intercompany receivable                         1,327,170,839
   Securities                                      1,233,749,286
   Derivative assets                                           5
   Investment in subsidiaries                       (908,900,867)
   Other assets                                            3,958
                                                   -------------
      Total Assets                                $1,812,045,690
                                                   =============
Liabilities and Stockholders' Equity

    Liabilities:
      Reverse repurchase agreements                  $16,602,590
      Junior subordinated note                       180,416,000
      Derivative liabilities                          53,817,031
      Accrued expenses & other liabilities         1,318,621,131
      Intercompany payable                           580,860,299
                                                   -------------
         Total Liabilities                         2,150,317,051

    Stockholders' Equity
      Preferred stock - Series A                      50,856,875
      Preferred stock - Series B                      83,183,125
      Common Stock                                       543,074
      Additional paid-in capital                   1,057,864,155
      Retained earnings                           (1,530,718,590)
      Other comprehensive loss                                 -
                                                   -------------
         Total Stockholders' Equity                 (338,271,361)
                                                   -------------
Total Liabilities & Stockholders' Equity          $1,812,045,690
                                                   =============

               American Home Mortgage Investment Corp.
                       Statement of Income
                    Month Ended March 31, 2008

Net Interest Income:
   Interest income                                    $3,188,612
   Interest expense                                            -
                                                    ------------
      Net interest income                              3,188,612
   Provision for loan losses                                   -
                                                    ------------
      Net interest income after provision              3,188,612
        for loan losses
Non-Interest Income:
   Loss on mortgage loans                                     13
   Loss on securities and derivatives                 (4,943,339)
   Gain (loss) from Subsidiaries                     (17,814,653)
   Other non-interest income                                   -
                                                    ------------
      Non-interest income(loss)                      (22,757,979)

Other
   Data processing and communications                        990
   Professional fees                                      13,917
   Other expenses                                         51,432
                                                    ------------
      Total expenses                                      66,339

Loss before income taxes                             (19,635,706)
Income taxes                                                   -
                                                    ------------
Net loss (income)                                   ($19,635,706)
                                                    ============

               American Home Mortgage Investment Corp.
          Schedule of Cash Receipts and Disbursements
                    Month Ended March 31, 2008

Cash - Beginning of Month, 03/01/2008               $156,820,741

Receipts:
   Cash sales                                                  -
   Accounts receivable                                         -
   Sale of assets                                     12,885,583
   Loans and advances                                          -
   Administrative                                              -
   Net payroll                                                 -
   Other                                                 480,529
   Transfers (from DIP accounts)                               -
                                                    ------------
      Total Receipts                                  13,366,113

Disbursements:
   Net payroll                                         1,446,697
   Payroll taxes                                               -
   Sales, use & other taxes                                    -
   Loans and advances                                    867,485
   Inventory purchases                                         -
   Secured/rental/leases                                       -
   Insurance                                                   -
   Administrative                                      1,719,682
   Selling                                                     -
   Other                                                       -
   Transfers (from DIP accounts)                       9,830,692
   Professional fees                                           -
   U.S. Trustee quarterly fees                                 -
   Court costs                                                 -
                                                    ------------
      Total Disbursements                             13,864,556
                                                    ------------
      Net Cash Flow                                     (498,444)
                                                    ------------
Cash - End of Month - 03/31/08                      $156,322,297
                                                    ============

                       About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage  
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054).  James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel.  As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.

The Debtors' exclusive periods to file a plan of reorganization
expired on June 2, 2008.  (American Home Bankruptcy News, Issue
No. 38; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: AHMC Files March 2008 Monthly Operating Report
-------------------------------------------------------------

                  American Home Mortgage Corp.
                Statement of Financial Condition
                      As of March 31, 2008

Assets:
   Cash and cash equivalents                         $23,065,531
   Restricted cash                                     6,245,140
   Securities purchased under agreements                       -
   Accounts receivable                                31,949,819
   Intercompany receivable                           687,869,784
   Mortgage loans                                    597,998,247
   Derivative assets                                     743,601
   Mortgage servicing rights                         376,844,753
   Other real estate, net                             50,454,813
   Premises and equipment, net                        21,903,836
   Investment in subsidiaries                         73,671,439
   Other assets                                        3,097,929
                                                   -------------
      Total Assets                                $1,873,844,892
                                                   =============

Liabilities and Stockholders' Equity

   Liabilities:
      Warehouse lines of credit                     $591,851,511
      Derivative liabilities                          10,481,560
      Accrued expenses & other liabilities           512,360,522
      Intercompany payable                         1,474,866,236
      Notes payable                                      901,858
      Income taxes payable                             4,656,330
                                                   -------------
         Total Liabilities                         2,595,118,017

   Stockholders' Equity
      Additional paid-in capital                     153,195,272
      Retained earnings                             (874,468,397)
      Other comprehensive loss                                 -
                                                   -------------
         Total Stockholders' Equity                 (721,273,125)
                                                   -------------
Total Liabilities & Stockholders' Equity          $1,873,844,892
                                                   =============

                  American Home Mortgage Corp.
                       Statement of Income
                   Month Ended March 31, 2008

Net Interest Income:
   Interest income                                    $3,733,913
   Interest expense                                       (5,205)
                                                    ------------
      Net interest income                              3,728,708
   Provision for loan losses                                   -
                                                    ------------
      Net interest income after provision              3,728,708
        for loan losses

Non-Interest Income:
   Gain (loss) on mortgage loans                     (17,032,372)
   Loan servicing fees                                12,497,456
   Changes in fair value of MSR                                -
   Income (loss) from subsidiaries                       (22,274)
   Other non-interest (loss) income                  (11,849,041)
                                                    ------------
      Non-interest income                            (16,406,231)

Expenses
   Salaries, commissions & benefits, net               2,432,946
   Occupancy and equipment                               437,740
   Data processing and communications                   (128,803)
   Office supplies and expenses                            6,141
   Marketing and promotion                                 1,110
   Travel and entertainment                                2,000
   Professional fees                                   1,854,982
   Other real estate operating expense                 1,786,233
   Other                                                 265,599
                                                    ------------
      Total expenses                                   6,657,948

Income (Loss) before income taxes                    (19,335,471)
Income taxes                                                   -
                                                    ------------
Net loss (income)                                   ($19,335,471)
                                                    ============

                  American Home Mortgage Corp.
           Schedule of Cash Receipts and Disbursements
                   Month Ended March 31, 2008

Cash - Beginning of Month, 03/01/2008                $19,795,778

Receipts:
   Cash sales                                                  -
   Accounts receivable                                         -
   Sale of assets                                              -
   Loans and advances                                    403,074
   Administrative                                      1,426,745
   Net payroll                                                 -
   Other                                                       -
   Transfers (from DIP accounts)                       7,694,644
                                                    ------------
      Total Receipts                                   9,524,463

Disbursements:
   Net payroll                                             9,572
   Payroll taxes                                               -
   Sales, use & other taxes                                    -
   Loans and advances                                          -
   Inventory purchases                                         -
   Secured/rental/leases                                       -
   Insurance                                                   -
   Administrative                                              -
   Selling                                                     -
   Other                                                       -
   Transfers (from DIP accounts)                               -
   Professional fees                                           -
   U.S. Trustee quarterly fees                                 -
   Court costs                                                 -
                                                    ------------
      Total Disbursements                                  9,572
                                                    ------------
      Net Cash Flow                                    9,514,892
                                                    ------------
Cash - End of Month - 03/31/08                       $29,310,670
                                                    ============

                       About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054).  James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel.  As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.

The Debtors' exclusive periods to file a plan of reorganization
expired on June 2, 2008.  (American Home Bankruptcy News, Issue
No. 38; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: AHMAI Files March 2008 Monthly Operating Report
--------------------------------------------------------------

             American Home Mortgage Acceptance, Inc.
                Statement of Financial Condition
                     As of March 31, 2008

Assets:
   Cash and cash equivalents                            $209,412
   Restricted cash                                             -
   Accounts receivable                                 1,615,689
   Intercompany receivable                           517,059,825
   Mortgage loans                                    123,499,573
   Mortgage servicing rights                          16,744,758
   Other real estate, net                              3,843,808
   Investment in subsidiaries                        (25,668,895)
   Other assets                                          156,271
                                                    ------------
      Total Assets                                  $637,460,441
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Warehouse lines of credit                     $140,005,153
      Accrued expenses & other liabilities            18,017,452
      Intercompany payable                           663,178,130
                                                    ------------
         Total Liabilities                           821,200,735

   Stockholders' Equity
      Additional paid-in capital                      40,298,920
      Retained earnings                             (224,039,214)
      Other comprehensive loss                                 -
                                                    ------------
         Total Stockholders' Equity                 (183,740,294)
                                                    ------------
Total Liabilities & Stockholders' Equity            $637,460,441
                                                    ============

               American Home Mortgage Acceptance, Inc.
                       Statement of Income
                  Month Ended March 31, 2008

Net interest income:
   Interest income                                      $773,609
   Interest expense                                            -
                                                    ------------
      Net interest income                                773,609

Provision for loan losses                                      -
                                                    ------------
      Net interest income after provision for
        loan losses                                      773,609

Non-interest income:

   Gain (loss) on mortgage loans                       2,322,255
   Gain on securities and derivatives                          -

   Loan servicing fees                                         -
   Changes in value of MSR                                     -
                                                    ------------
   Net loan servicing fees                                     -
   Income from subsidiaries                               (4,640)
   Other non-interest income                                   -
                                                    ------------
      Non-interest income                              2,317,615

Expenses:
   Salaries, commissions and benefits, net               247,214
   Office supplies and expenses                                -
   Marketing and promotion                                     -
   Professional fees                                           -
   Other real estate operating expense                   353,577
   Other                                                   3,199
                                                    ------------
      Total expenses                                     603,990

Income (Loss) before income taxes                      2,487,234
Income taxes                                                   -
                                                    ------------
Net income                                            $2,487,234
                                                    ============

American Home Mortgage Acceptance, Inc., discloses that its Cash
as of March 1, 2008, was $206,981.  Since it paid $2,430 in loans
and advances, American Home Acceptance's cash at the end of the
month was $209,411.

                       About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054).  James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel.  As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.

The Debtors' exclusive periods to file a plan of reorganization
expired on June 2, 2008.  (American Home Bankruptcy News, Issue
No. 38; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: AHMSI Files March 2008 Monthly Operating Report
--------------------------------------------------------------

             American Home Mortgage Servicing, Inc.
               Statement of Financial Condition
                   As of March 31, 2008

Assets:
   Cash and cash equivalents                         $92,159,606
   Restricted cash                                     3,801,408
   Accounts receivable & servicing advances          209,925,064
   Intercompany receivable                           143,115,761
   Premises and equipment, net                         2,532,116
   Investment in subsidiaries                          9,727,945
   Other assets                                          763,267
                                                    ------------
      Total Assets                                  $462,025,167
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Warehouse lines of credit                                -
      Accrued expenses & other liabilities          $221,964,891
      Intercompany payable                           131,590,875
      Income taxes payable                             1,789,918
                                                    ------------
         Total Liabilities                           355,345,684

   Stockholders' Equity
      Additional paid-in capital                      37,000,200
      Retained earnings                               69,679,283
      Other comprehensive loss                                 -
                                                    ------------
         Total Stockholders' Equity                  106,679,483
                                                    ------------
Total Liabilities & Stockholders' Equity            $462,025,167
                                                    ============

             American Home Mortgage Servicing, Inc.
                    Statement of Income
                  Month Ended March 31, 2008

Net interest income:
   Interest income                                             -
                                                    ------------
      Net interest income                                      -

Provision for loan losses                                      -
                                                    ------------
      Net interest income after provision for                  -
        loan losses                                      

Non-interest income:
   Gain (loss) on mortgage loans                       ($344,650)
   Loan servicing fees                                         -
   Gain on sale of servicing platforms                   (44,752)
                                                    ------------
   Net loan servicing (loss) fees                        (44,752)
   Income from subsidiaries                                    -
   Other non-interest income (loss)                       44,754
                                                    ------------
      Non-interest income                               (344,648)  

Expenses:
   Salaries, commissions and benefits, net             1,877,465
   Occupancy and equipment                                17,949
   Data processing and communications                    311,754
   Office supplies and expenses                          394,861
   Marketing and promotion                                 1,396
   Travel and entertainment                               17,029
   Professional fees                                      59,840
   Other real estate operating expense                    (3,722)
   Other                                              (3,014,476)
                                                    ------------
      Total expenses                                    (337,904)

Income (Loss) before income taxes                         (6,744)
Income taxes                                                   -
                                                    ------------
Net income (loss)                                        ($6,744)
                                                    ============

             American Home Mortgage Servicing, Inc.
           Schedule of Cash Receipts and Disbursements
                   Month Ended March 31, 2008

Cash - Beginning of Month, 03/01/2008                $59,386,581

Receipts:
   Cash sales                                                  -
   Accounts receivable                                         -
   Sale of assets                                              -
   Loans and advances                                 38,091,983
   Administrative                                              -
   Net payroll                                                 -
   Other                                                       -
   Transfers (from DIP accounts)                       2,136,048
                                                    ------------
      Total Receipts                                  40,228,031

Disbursements:
   Net payroll                                         1,034,134
   Payroll taxes                                               -
   Sales, use & other taxes                                    -
   Loans and advances                                          -
   Inventory purchases                                         -
   Secured/rental/leases                                       -
   Insurance                                                   -
   Administrative                                      2,619,464
   Selling                                                     -
   Other                                                       -
   Transfers (from DIP accounts)                               -
   Professional fees                                           -
   U.S. Trustee quarterly fees                                 -
   Court costs                                                 -
                                                    ------------
      Total Disbursements                              3,653,598
                                                    ------------
      Net Cash Flow                                   36,574,433
                                                    ------------
Cash - End of Month - 03/31/08                       $95,961,014
                                                    ============

                       About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054).  James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel.  As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.

The Debtors' exclusive periods to file a plan of reorganization
expired on June 2, 2008.  (American Home Bankruptcy News, Issue
No. 38; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


HANCOCK FABRICS: Incurs $1,869,000 Net Loss in May 2008
-------------------------------------------------------

              Hancock Fabrics, Inc. and Subsidiaries
                    Consolidated Balance Sheet
                        As of May 3, 2008


ASSETS
Current assets:
   Cash and cash equivalents                          $2,705,000
   Receivables, less allowance for
      doubtful accounts                                4,037,000
   Inventories                                        81,150,000
   Income taxes refundable                             8,118,000     
   Prepaid expenses                                    1,058,000
                                                    ------------
   Total current assets                               97,068,000

Property and equipment                                44,531,000
Other assets                                          11,059,000
                                                    ------------
Total Assets                                        $152,658,000
                                                    ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities not subject to compromise:
   Accounts payable                                  $17,906,000
   Credit facility; DIP financing                     36,981,000
   Accrued liabilities                                13,996,000
   Deferred tax liabilities                            2,242,000
   Postretirement benefits other than pensions           384,000
   Pension and SERP liabilities                          396,000
   Other liabilities                                   2,986,000

Liabilities subject to compromise:
   Accounts payable                                   27,432,000
   Accrued liabilities                                 6,739,000
   Income taxes payable                                1,500,000
   Capital lease obligations                           3,347,000
   Postretirement benefits other than pensions         8,414,000
   Pension and SERP liabilities                        5,007,000
   Other liabilities                                   6,369,000
                                                    ------------
Total Liabilities                                    131,457,000
Total Shareholders' Equity                            21,201,000
                                                    ------------
Total liabilities and shareholders' equity          $152,658,000
                                                    ============

             Hancock Fabrics, Inc., and Subsidiaries
               Consolidated Statement of Operations
                  For the Month Ended May 3, 2008

Sales                                                $18,911,000
Cost of goods sold                                    10,096,000
                                                     -----------
Gross profit                                           8,815,000

Selling, general & admin. expense                      9,331,000
Depreciation and amortization                            312,000
                                                     -----------
Operating income (loss)                                 (828,000)

Reorganization expenses                                  727,000
Interest expense, net                                    314,000
                                                     -----------
Earnings (loss) before income taxes                   (1,869,000)
Income taxes                                                   0
                                                     -----------
Net earnings (loss)                                  ($1,869,000)
                                                     ===========

             Hancock Fabrics, Inc., and Subsidiaries
               Consolidated Statement of Cash Flow
                 For the Month Ended May 3, 2008

Cash flows from operating activities:
   Net earnings                                      ($1,869,000)
   Adjustments to reconcile net
   earnings to cash flows used in
   operating activities:
      Depreciation and amortization                      464,000
      Amortization of deferred loan costs                 48,000
      LIFO charge (credit)                               177,000
      Reserve for store closings credits                (543,000)
      Reserve for obsolete inventory                           0
      Stepped rent accrual                                 7,000
      Loss (gain) on disposition of property and
        equipment                                         24,000
      Stock compensation expense                         154,000
      Reorganization expense, net                        727,000
   (Increase) decrease in assets:
      Receivables and prepaid expenses                   374,000
      Inventory at current cost                       (4,185,000)
      Other non-current assets                           464,000
   Increase (decrease) in liabilities:
      Accounts payable                                 1,466,000
      Accrued liabilities                              3,316,000
      Postretirement benefits other than pensions       (107,000)
      Long-term pension and SERP liabilities              16,000
      Other liabilities                                 (203,000)
                                                       ---------
Net cash used in operating activities before
   reorganization activities                             330,000
Net cash used for reorganization activities           (1,848,000)
                                                       ---------
Net cash used in operating activities                 (1,518,000)
                                                       ---------
Cash flows from investing activities:
   Additions to property and equipment                (1,609,000)
   Proceeds from the disposition of property and
      equipment                                           18,000
                                                       ---------
Net cash used in investing activities                 (1,591,000)

Cash flows from financing activities:
   Net borrowings on DIP credit facility               3,865,000
   Payments for capital leases                            (6,000)
   Payments for loan costs                                     0
   Purchase of treasury stock                           (475,000)
                                                       ---------
Net cash provided by financing activities              3,384,000
                                                       ---------
Decrease in cash and cash equivalents                    275,000
Cash, beginning of period                              2,430,000
                                                       ---------
Cash, end of period                                   $2,705,000
                                                       =========

                     About Hancock Fabrics

Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc.
(OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty
retailer of a wide selection of fashion and home decorating
textiles, sewing accessories, needlecraft supplies and sewing
machines.  Hancock Fabrics is one of the largest fabric retailers
in the United States, currently operating approximately 400 retail
stores in approximately 40 states.  The company employs
approximately 7,500 people on a full-time and part-time basis.
Most of the company's employees work in its retail stores, or in
field management to support its retail stores.

The company and six of its debtor-affiliates filed for chapter 11
protection on March 21, 2007 (Bankr. D. Del. Lead Case No.
07-10353).  Robert J. Dehney, Esq., at Morris, Nichols, Arsht &
Tunnell, represent the Debtors.  The U.S. Trustee for Region 3
appointed five creditors to serve on an Official Committee of
Unsecured Creditors.  As of Sept. 1, 2007, Hancock
Fabrics disclosed total assets of $159,673,000 and total
liabilities of 122,316,000.

The Debtors have filed a plan of reorganization and proposed a
confirmation hearing on that plan be set for July 22, 2008.  
(Hancock Fabric Bankruptcy News, Issue No. 34, Bankruptcy
Creditors' Service Inc.; http://bankrupt.com/newsstand/or   
215/945-7000).


KIMBALL HILL: Files Schedules of Assets and Liabilities
-------------------------------------------------------
Kimball Hill Inc. submits its schedules of assets and
liabilities, disclosing:

A.    Real Property
       Sterling Building                          $8,400,153          
       Stonehill Square                              986,706      

B.    Personal Property
B.1   Cash on hand                                         0
B.2   Bank Accounts
       Harris -- Acct No. 313-944-1            2,108,848,656
       Harris -- Acct No. 313-950-8                1,162,551
       Harris -- Acct No. 314-155-3                  231,440
       Harris -- Acct No. 313-982-1                  134,336
       Harris -- Acct No. 314-155-3                   49,988
       Harris -- Acct No. 313-974-8                   33,354
       Harris -- Acct No. 313-820-3                        0
       Harris -- Acct No. 313-858-3                        0
       Harris -- Acct No. 313-857-5                        0
       Harris -- Acct No. 313-916-9             (678,292,882)
       Harris -- Acct No. 313-915-1           (1,423,179,608)
       Bank of America, Acct. No. 8666100237       1,759,638
       Bank of America, Acct. No. 14435358            40,718
       LaSalle Bank, N.A.                          1,008,130
       US Bank, Acct. 1-993-8002-8795                415,431
       US Bank, Acct. 1-993-8020-4230                      0
       Fifth Third Bank                              243,910
       JP Morgan Chase                               121,966
B.3   Security Deposits                                    0
B.4   Household goods                                      0
B.5   Collectibles                                         0
B.6   Wearing apparel                                      0
B.9   Interests in Insurance Policies
       Life Insurance                              4,304,649
       American International                         21,562
       Illinois National Ins. Co.               Undetermined
       XL Europe -- Excess                      Undetermined
       American Safety Indemnity Co.            Undetermined
       Hartford Insurance                       Undetermined      
B.10  Annuities                                            0         
B.11  Interests in educational IRA                         0
B.12  Interests in IRA, ERISA or other Pension Plans       0
B.13  Business Interests and stocks
       Kimball Hill Homes Texas, Inc.              5,750,000
       National Credit and Guaranty Corp.          5,000,000
       Kimball Hill Urban Centers, LLC               250,000
       Kimball Hill Homes Florida, Inc.               10,000
       Kimball Hill Homes Wisconsin, Inc.              1,000
       Kimball Hill Homes Washington, Inc.             1,000
       Kimball Hill Texas Investment Co., LLC          1,000
       KH Financial Holding Company                    1,000
       Kimball Hill Homes California, Inc.             1,000
       Kimball Hill Homes Nevada, Inc.                 1,000
       Kimball Hill Homes Illinois, Inc.               1,000
       Kimball Hill Homes Oregon, Inc.                 1,000
       Kimball Hill Homes Ohio, Inc.                   1,000
B.14  Interests in partnerships
       The Hamilton Place Partnership                236,141
       Sherwood Glen on the Fox Apartments Unit 2    136,842
       Builder Homesite                               50,000
       Sherwood Glen on the Fox Partnership     Undetermined
B.15  Government and Corporate Bonds                       0
B.16  Accounts Receivable
       Intercompany Receivable                   424,017,706
       Employee Receivable                            50,000
       Miscellaneous Receivables                      41,042
       Tenants Rent                                   16,716
B.18  Other Liquidated Debts                               0
B.20  Other Contingent & Unliquidated Claims               0
B.21  Intellectual Property                                0
B.22  Patents                                              0
B.23  Licenses, Franchises and Gen. Intangibles            0
B.25  Vehicles                                             0
B.26  Boats, motors, and accessories                       0
B.27  Aircraft and accessories                             0
B.28  Office equipment, furnishings and supplies   2,293,968

   See http://bankrupt.com/misc/Kimball_B28_OfficeEquipment.pdf

B.29  Machinery                                            0
B.30  Inventory                                             
       Bright Meadows                              1,756,589
       Properties                                    905,446
       Barrington Hills                              560,584
       Interest                                     (171,950)
B.35  Other Personal Property
       Bond Issue cost                             4,387,630      
       Harris Up-Front and Amendment Fees          3,492,515
       Prepaid Residential Warranty                2,000,000
       Prepaid Professional Services/Retainers     1,387,500
       Leasehold Improvements                        607,395
       Open Accounts Payable Adjustments             479,368
       Other                                           2,102
       Clearing Account                                  332
       A/D Leasehold Improvements                   (605,562)

      TOTAL SCHEDULED ASSETS                    $478,954,063
      ======================================================

C.    Property Claimed as Exempt                          $0      

D.    Secured Claim
       Amerimark Bank -- Golf Rd Loan              4,814,700
       Amerimark Bank -- Stonehill Square Loan     1,663,703
       Amerimark Bank -- UCC Statement          Undetermined
       Harris N.A. -- Senior Credit              318,316,046
       Harris N.A. -- UCC Statement             Undetermined
       Applied Financial, LLC                   Undetermined
       Fifth Third Bank                         Undetermined
       Fleet Bus. Credit, LLC                   Undetermined

       IBM Credit LLC                           Undetermined
       LaSalle Bank Nat'l.  Assn.               Undetermined
       Pullman Bank and Trust                   Undetermined
       RBC Centura Bank                         Undetermined
       RFC Construction Funding Corp.           Undetermined
       Wells Fargo Bank                         Undetermined

E.    Unsecured Priority Claims                 Undetermined
      
      See http://bankrupt.com/misc/Kimball_SchedE.pdf

F.    Unsecured Non-priority Claims
       US Bank                                   210,584,588       
       Wachovia Bank National                     19,019,532
       CIGNA                                         180,279
       Coleman Floor Company                         143,231
       Atomatic Mechanical Services, Inc.             91,791
       Others                                      3,654,425

      TOTAL SCHEDULED LIABILITIES               $558,468,295
      ======================================================

                       About Kimball Hill

Based in Rolling Meadow, Illinois, Kimball Hill Inc. --
http://www.kimballhillhomes.com/-- is one of the largest         
privately-owned homebuilders and one of the 30 largest
homebuilders in the United States, as measured by home deliveries
and revenues.  The company designs, builds and markets single-
family detached, single-family attached and multi-family homes.
The company currently operate within 12 markets, including, among
others, Chicago, Dallas, Ft. Worth, Houston, Las Vegas, Sacramento
and Tampa, in five regions: Florida, the Midwest, Nevada, the
Pacific Coast and Texas.

Kimball Hill, Inc. and 29 of its affiliates filed for Chapter 11
protection on April 23, 2008 (Bankr. N.D. Ill. Lead Case No. 08-
10095).  Ray C. Schrock, Esq., at Kirkland & Ellis LLP, represents
the Debtors in their restructuring efforts.  The Debtors'
consolidated financial condition as of Dec. 31, 2007 reflected
total assets of $795,473,000 and total debts $631,867,000.

The Debtors' exclusive plan filing period expires on Aug. 21,
2008.  (Kimball Hill Bankruptcy News, Issue No. 6; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000).


KIMBALL HILL: Houston LLC Files Schedules of Assets and Debts
-------------------------------------------------------------
Kimball Hill Homes Houston LLC submits its schedules of assets
and liabilities, disclosing:

A.    Real Property                                       $0      

B.    Personal Property
B.1   Cash on hand                                         0
B.2   Bank Accounts                                        0
B.3   Security Deposits                                    0
B.4   Household goods                                      0
B.5   Collectibles                                         0
B.6   Wearing apparel                                      0
B.9   Interests in Insurance Policies                      0
B.10  Annuities                                            0
B.11  Interests in educational IRA                         0
B.12  Interests in IRA, ERISA or other Pension Plan        0
B.13  Business Interests and stocks
       Premier Title Company of Houston               71,425
B.14  Interests in partnerships
       Woodridge Residential, L.P.                 3,166,604
B.15  Government and Corporate Bonds                       0
B.16  Accounts Receivable                                  0
       Settlement proceeds                         1,002,963
       Advanced Commissions                          (77,670)
       Miscellaneous Receivables                     (43,635)
B.18  Other Liquidated Debts                               0
B.20  Other Contingent & Unliquidated Claims               0
B.21  Intellectual Property                                0
B.22  Patents                                              0
B.23  Licenses, Franchises and General Intangibles         0
B.25  Vehicles                                             0
B.26  Boats, motors, and accessories                       0
B.27  Aircraft and accessories                             0
B.28  Office equipment, furnishings and supplies
       Opening entry -- fully depreciated asset       14,325
       Printer, Copier, Scanner                       10,424
       CDW Computer                                    2,998
        Less: Depreciation                           (25,054)
B.29  Machinery                                            0
B.30  Inventory
       Fieldstone 60'                             25,755,847          
       Cypress Landing Park                        5,568,090
       Fieldstone 70'                              3,865,049          
       Falls at White Oak                          3,390,148
       Eagles Springs                              3,294,652
       Fieldstone 50'                              2,889,776
       Indian Trails Sec 1 and 3                   2,664,785
       Westheimer Lakes 50'                        2,362,752
       Bridgewater                                 2,258,325      
       Fieldstone 45'                              2,095,173
       Autumn Lake                                 1,906,895
       Others                                     13,766,511

       See http://bankrupt.com/misc/KHHouston_SAL_Inventory.pdf

B.35  Other Personal Property
       Open Accounts Payable Adjustments           1,388,269
       Deferred Project Overhead                   1,132,782
       Adjustment to capped IDC                       83,775
       Others                                        113,527

      TOTAL SCHEDULED ASSETS                     $76,658,735
      ======================================================

C.    Property Claimed as Exempt                          $0

D.    Secured Claim
       Harris N.A. -- Senior Credit Facility     318,316,046
       Harris N.A. -- UCC Statement             Undetermined
       Comerica Bank -- Texas                   Undetermined
       RFC Construction Funding Corp.           Undetermined

E.    Unsecured Priority Claims                      107,553

      See http://bankrupt.com/misc/KHHouston_SAL_SchedE.pdf

F.    Unsecured Non-priority Claims
       US Bank -- St. Paul Minnesotta            210,584,588
       Lescon Plumbing Inc.                          255,272
       Joe Swartz Electric                           157,245
       Watts Pool Company, Inc.                      146,393
       Texwood Industries, L.P.                      139,245
       P.V. Roofing Corp.                            124,341
       Wisenbaker Builder                            118,928
       Others                                     21,211,539

       See http://bankrupt.com/misc/KHHouston_SAL_SchedF.pdf

      TOTAL SCHEDULED LIABILITIES               $551,161,150
      ======================================================

                       About Kimball Hill

Based in Rolling Meadow, Illinois, Kimball Hill Inc. --
http://www.kimballhillhomes.com/-- is one of the largest         
privately-owned homebuilders and one of the 30 largest
homebuilders in the United States, as measured by home deliveries
and revenues.  The company designs, builds and markets single-
family detached, single-family attached and multi-family homes.
The company currently operate within 12 markets, including, among
others, Chicago, Dallas, Ft. Worth, Houston, Las Vegas, Sacramento
and Tampa, in five regions: Florida, the Midwest, Nevada, the
Pacific Coast and Texas.

Kimball Hill, Inc. and 29 of its affiliates filed for Chapter 11
protection on April 23, 2008 (Bankr. N.D. Ill. Lead Case No. 08-
10095).  Ray C. Schrock, Esq., at Kirkland & Ellis LLP, represents
the Debtors in their restructuring efforts.  The Debtors'
consolidated financial condition as of Dec. 31, 2007 reflected
total assets of $795,473,000 and total debts $631,867,000.

The Debtors' exclusive plan filing period expires on Aug. 21,
2008.  (Kimball Hill Bankruptcy News, Issue No. 6; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000).


KIMBALL HILL: Illinois LLC Files Schedules of Assets and Debts
--------------------------------------------------------------
Kimball Hill Homes Illinois LLC submits its schedules of assets
and liabilities, disclosing:

A.     Real Property                                      $0

B.     Personal Property
B.1    Cash on hand                                        0
B.2    Bank accounts                                       0
B.3    Security deposit                              110,531
B.13   Stock and interests
        KH Ingram Park South, LLC                      1,000
        KH SRAV I, LLC                            10,673,771
B.14   Interests in partnerships & joint venture
        Regency Oaks Limited Partnership               1,005
        The Hamilton Place Partnership               698,978
B.16   Accounts receivable
        Settlement proceeds                           (2,429)
        Escrow holdbacks                              40,638
        Advanced commissions                        (131,933)
        Miscellaneous receivables                    408,066
B.28   Office equipment
        Printer/copier/scanner                         5,177
        Opening entry -- fully depreciated assets      8,273
        A/D data processing equipment                (12,937)
B.30   Inventory
        Edgewater Heritage                           871,362
        Edgewater Traditions                       3,574,564
        Huntington Chase                           5,320,982
        Ingham Park                                1,805,990
        Legend Lakes Country TC                    2,156,380
        Legend Lakes Homestead                     4,817,806
        Legend Lakes Land                           (780,395)
        Legend Lakes Preserves                     1,486,794
        Mayfair Town Homes                        14,184,946
        Mayfair Court Homes                        4,620,566
        Preserves Of South Elgin                      (1,124)
        Cherry Ridge Townes                        7,426,419
        Settlers Ridge Courts                             72
        Settlers Ridge Estates                       309,238
        Settlers Ridge Grove                       1,643,735
        Settlers Ridge Harvest                     1,103,198
        Settlers Ridge Marqis                        598,765
        Settlers Ridge Pioneer I                      96,067
        Settlers Ridge Pioneer II                    400,767
        Settlers Ridge Pioneer III                   101,123
        Settlers Ridge Prairie                       (33,848)
        Settlers Ridge Woodlands                     (66,750)
        Shelburne Farms Courthomes                11,473,248
        SRAV 2 - Settlers Ridge                      528,220
        Waterford                                  9,271,495
        Whispering Meadows                         5,029,721
        White Oak Unit 4                           1,903,407
        White Oak Unit 5                           2,253,032
        Chapel Crossing                              (16,045)
        Astor Place Condos                            (6,065)
        Tower Crossing                               (22,384)
        Grandview Farms                                    0
        Chicago West Land                                484
B.35   Other personal property                     1,820,121

       TOTAL SCHEDULED ASSETS                    $93,672,031
       =====================================================

C.     Property Claimed as Exempt                         $0

D.     Creditors Holding Secured Claims
        Harris, N.A., as Administrative Agent    318,316,046

E.     Creditors Holding Unsecured Priority Claims
        Barry, John                                    2,425

        Bern, Alan                                     2,425
        Bradford, William                              2,425
        Brennan, Julianne                              2,425
        Desai, Vijaykumar                              2,425
        Finn, Philip                                   2,425
        Koutny, Debra                                  2,425
        Leek, Daniel                                   2,425
        Martin, Michael                                2,425
        McConnaughey, Joseph                           2,425
        Parikh, Viral                                  2,425
        Patel, Devendra                                2,425
        Patel, Jigneshkumar                            2,425
        Pedraza, Peter                                 2,425
        Rasmussen, Sandra                              2,425
        Renaghan, Joanne                               2,425
        Sterrett, Shannon                              2,425
        Thakkar, Nital                                 2,425
        Thomas, John                                   2,425
        Tomaszewski, Piotr                             2,425
        Valere-Charles, Shirley                        2,425
        Veverka, William                               2,425
        Willes, Kimberly                               2,000

F.     Creditors Holding Unsecured Non-priority Claims
        US Bank, as Indenture Trustee            210,590,738
        Intercompany                             111,694,999
        B & C Moore Excavating                       132,644
        Builders Concrete                            512,953
        Coleman Floor Company                        111,262
        Four Seasons Heating & Cooling               158,326
        Gluth Bros. Construction Co.                 188,035
        Ibarras Concrete Company                     468,952
        LM Squared LLC                               155,287
        Lockwood Furnace                             112,402
        Mid American Heating                         108,474
        Neslund & Associates, Inc.                   201,200
        R & D Thiel                                  895,042
        Service Drywall And Decorating               101,609
        T & H Electric Ltd.                          103,181
        Other                                      2,622,272

       TOTAL SCHEDULED LIABILITIES              $646,528,772
       =====================================================

                       About Kimball Hill

Based in Rolling Meadow, Illinois, Kimball Hill Inc. --
http://www.kimballhillhomes.com/-- is one of the largest         
privately-owned homebuilders and one of the 30 largest
homebuilders in the United States, as measured by home deliveries
and revenues.  The company designs, builds and markets single-
family detached, single-family attached and multi-family homes.
The company currently operate within 12 markets, including, among
others, Chicago, Dallas, Ft. Worth, Houston, Las Vegas, Sacramento
and Tampa, in five regions: Florida, the Midwest, Nevada, the
Pacific Coast and Texas.

Kimball Hill, Inc. and 29 of its affiliates filed for Chapter 11
protection on April 23, 2008 (Bankr. N.D. Ill. Lead Case No. 08-
10095).  Ray C. Schrock, Esq., at Kirkland & Ellis LLP, represents
the Debtors in their restructuring efforts.  The Debtors'
consolidated financial condition as of Dec. 31, 2007 reflected
total assets of $795,473,000 and total debts $631,867,000.

The Debtors' exclusive plan filing period expires on Aug. 21,
2008.  (Kimball Hill Bankruptcy News, Issue No. 6; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000).


PROPEX INC: Incurs May 2008 Net Loss of $10,700,000
---------------------------------------------------

                           Propex Inc.
          Unaudited Condensed Consolidated Balance Sheet
                        As of May 4, 2008

ASSETS

Current assets:
   Cash and cash equivalents                        $27,500,000
   Restricted cash                                      700,000
   Accounts receivable, net                         101,500,000
   Accounts Receivable Claims - prepetition            (100,000)
   Inventories, net                                 138,600,000
   Deferred income taxes                              8,700,000
   Prepaid expenses and other current assets         31,900,000
   Assets held for sale                               7,400,000
                                                    -----------
Total current assets                                316,200,000

Other assets:
   Goodwill                                                   -
   Intangible assets, net                            17,700,000
   Deferred income taxes                                      -
   Investment in Subsidiaries                                 -
   Intercompany Notes Receivable                              -
   Other assets                                       7,300,000
                                                    -----------
Property, plant and equipment, net                  222,800,000
                                                    -----------
Total assets                                       $564,000,000
                                                    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Prepetition
   Accounts payable                                  $8,400,000
   Accrued liabilities                                  200,000
   Current portion of debt and accrued interest     382,600,000
   Accrued pension obligations                                -
   Restructuring and other similar costs                700,000
   Other current liabilities                            300,000
Postpetition
   Accounts payable                                  33,400,000
   Accrued liabilities                               21,700,000
   Current portion of debt and accrued interest      35,100,000
   Accrued pension obligations                                -
   Restructuring and other similar costs                500,000
   Other current liabilities                          1,700,000
                                                    -----------
Total current liabilities                           484,600,000
                                                    
Non-Current liabilities:
Prepetition
   Accrued pension and other postretirement          24,800,000
     benefit liabilities
   Other non-current liabilities                              -
Postpetition
   Intercompany Notes Payable                                 -
   Debt, less current portion                                 -
   Deferred income taxes                             11,200,000
   Accrued pension and other postretirement          28,300,000
     benefit liabilities
   Other non-current liabilities                      1,400,000
                                                    -----------
Total non-current liabilities                        65,700,000
                                                    
Total stockholder's equity:
   Common stock                                               -
   Paid In Capital                                   96,300,000
   Accumulated Other Comprehensive income            23,200,000
   Retained Earnings - Prior Year                   (88,200,000)
   Retained Earnings - Current Year                 (17,600,000)
                                                    -----------
Total stockholder's equity                           13,700,000
                                                    -----------
Total liabilities and stockholder's equity         $564,000,000
                                                    ===========

                           Propex Inc.
     Unaudited Condensed Consolidated Statement of Operations
                   For Month Ended May 4, 2008

Net revenue                                         $66,100,000
Cost of sales                                        60,000,000
                                                    -----------
   Gross profit                                       6,100,000
   
Operating expenses:
   Selling, general and administrative                7,500,000
   Other expense, net                                   200,000
   Add Back Depreciation and Amortization             2,700,000

EBITDA                                                1,100,000

Depreciation & Amortization                           2,700,000
Interest expense                                      2,300,000
Restructuring and Similar Costs                       1,500,000
Other Non Operating expense                
   Impairment of goodwill                                     -
   Impairment of other intangibles                            -
   Impairment of property, plant and equipment                -
   Pension curtailment, net of settlement loss                -
   Debt Forgiveness                                           -
   Other                                                      -
Equity Loss from Sub Earnings                                 -

Income before income taxes                           (5,400,000)
   Income tax provision                               5,300,000
                                                    -----------   
Net income                                         ($10,700,000)
                                                    ===========

                           Propex Inc.
    Unaudited Condensed Consolidated Statement of Cash Flows
                   For Month Ended May 4, 2008

Cash Flows from Operating Activities:
   Net income (loss)                               ($10,700,000)
   Adjustments to reconcile net loss to net
     Depreciation and amortization                    2,700,000
     None Cash Interest on Debt                               -
     Amortization of bank fees                                -
     Net gain on dispositions of property               100,000
       and equipment
     Stock-based Compensation                           100,000
     Impairment of property, plant and equipment              -
     Impairment of goodwill                                   -
     Impairment of other intangibles                          -
     Pension and Post Retirement Benefit Cost           200,000
     Deferred income taxes                                    -
   Changes in operating assets and liabilities
     Increase in assets - Prepetition                  (100,000)
     Increase in assets - Postpetition                4,900,000
     Increase in liabilities - Prepetition             (500,000)
     Increase in liabilities - Postpetition           5,900,000
                                                    -----------
Net cash provided by operating activities             2,600,000

Cash flows from investing activities
   Capital expenditures                                (800,000)
   Proceeds from sale of property and equipment         100,000
   Acquisition of business                                    -
                                                    -----------   
   Net cash used in investing activities               (700,000)

Cash flows from financing activities
   Payments if long-term debt principal                       -
   Proceeds from issuance of debt                             -
   Debt issuance costs                                        -
   Dividends from unconsolidated Parent                       -
   Net receipts from unconsolidated Parent             (100,000)
   Net payments of affiliate debt                             -
                                                    -----------
   Net cash provided by financing activities           (100,000)
   Effect of changes in foreign exchange rates                -
     on cash and cash equivalents                   

   Change in cash and cash equivalents                1,800,000
   Cash and cash equivalents - beginning of period   25,700,000
                                                    -----------
   Cash and cash equivalents - end of period        $27,500,000
                                                    ===========

                           About Propex

Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber.  It is produces
primary and secondary carpet backing.  Propex operates in North
America, Europe, and Brazil.

The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-10249).
The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim,
Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston,
Texas, to represent them.  As of Sept. 30, 2007, the debtors'
balance sheet showed total assets of $585,700,000 and total debts
of $527,400,000.  The Debtors' exclusive period to file a plan of
reorganization expires on Aug. 21, 2008.

(Propex Bankruptcy News, Issue No. 12; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


REFCO LLC: Case Trustee Submits April 2008 Monthly Report
---------------------------------------------------------
Albert Togut, the Chapter 7 Trustee overseeing the liquidation of
Refco, LLC's estate, filed with the Court a monthly statement of
cash receipts and disbursements for the period April 1 to 30,
2008.

The Chapter 7 Trustee reports that Refco LLC's beginning balance
in its Chase Money Market account with JPMorgan Chase Bank, N.A.,
totaled $81,593,000 as of April 1.

During the Reporting Period, Refco LLC received a negative amount
of $1,126,000, and disbursed $1,838,000.  The Debtor held
$78,629,000 at the end of the period.

                            Refco, LLC
           Schedule of Cash Receipts and Disbursements
      Through JPMorgan Money Market and Checking Accounts
                  April 1 through April 30, 2008

Beginning Balance, April 1, 2008                     $81,593,000

RECEIPTS
Interest Income
Man Financial - Return of Erroneous Funds Received    (1,514,000)
Man Financial - Excess Capital return                    249,000
Other Receivables                                         44,000
                                                     -----------
    TOTAL RECEIPTS                                    (1,126,000)

TRANSFERS
Money Market Account to Checking Account                      --
                                                     -----------
    TOTAL TRANSFERS                                           --

DISBURSEMENTS
Operating Market Account to Checking Account             119,000
Reorganization Expenses:
   Attorney Fees
      Jenner & Block LLP                                 544,000
      Togut, Segal & Segal LLP                           232,000
      Neal, Gerber & Eisenberg LLP                       132,000
      Henderson & Lyman                                    5,000
      Ronald DeKoven                                      67,000
   Other Professional Fees
      Bridge Associates, LLC                             693,000
                                                     -----------
    TOTAL DISBURSEMENTS                                1,838,000
                                                     -----------
Ending Balance, April 30, 2008                       $78,629,000  
                                                     ===========

The Chapter 7 Trustee filed the Monthly Statement in lieu of
comprehensive financial statements.

A full-text copy of Refco LLC's April 2008 Monthly Statement is
available at no charge at:

         http://bankrupt.com/misc/RefcoLLCMORApril08.pdf

                           About Refco

Headquartered in New York, Refco Inc. -- http://www.refco.com/  
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base.  Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore.  In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives.  The company has operations in Bermuda.

The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors.  Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.

The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on Dec. 15, 2006.  That Plan became effective on Dec. 26,
2006.  (Refco Bankruptcy News, Issue No. 83; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


REUNION INDUSTRIES: Earns $41,392,000 in Month Ended April 30
-------------------------------------------------------------
Reunion Industries Inc. had $392,901 in cash at the beginning of
the month of April 2008, excluding lock-boxes.  Cash at the end
of the month of April 2008 was $51,452,476.

In connection with the sale of the CP Industries division on
April 18, 2008, the Debtor's DIP Financing Agreement was paid in
full.  Additionally, another creditor with a secured  lien was
paid in full.  The total of these payments was $14.7 million.  
This amount has been netted against the proceeds from the sale of
the CPI division.

For the month of April 2008, the company generated net sales of
$2,682,000 and earned $41,392,000.

As of April 30, 2008, the company's balance sheet showed total
assets of $68,286,000, total liabilities of $50,033,000, and
total stockholders' equity of $18,253,000.

A full-text copy of the company's April 2008 report is available
for free at http://ResearchArchives.com/t/s?2df8

                     About Reunion Industries

Headquartered in Pittsburgh, Pennsylvania, Reunion Industries
Inc. owns and operates industrial manufacturing operations that
design and manufacture engineered, high quality products for
specific customer requirements.  These products include large
diameter seamless pressure vessels, manufactured by its CP
Industries division, and hydraulic and pneumatic cylinders,
manufactured by its Hanna Cylinders division.  In addition,
the Debtor has a 65% interest in Shanghai Klemp Metal Products
Co., Ltd., a Chinese company located in Shanghai, China.
Shanghai Klemp manufactures metal bar grating.

Reunion Industries filed for Chapter 11 protection on Nov. 26,
2007 (Bankr. D. Conn. Case No.: 07-50727).  Two Reunion Industries
stockholders, Charles E. Bradley, Sr. Family, L.P., and John Grier
Poole Family, L.P., filed separate Chapter 11 petitions on the
same day (Bankr. D. Conn. Case Nos. 07-50725 and 07-50726).  Carol
A. Felicetta, Esq. at Reid and Riege, P.C. represents the Debtors
in their restructuring efforts.

                             *********

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

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
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On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts.  The list includes links
to freely downloadable images of these small-dollar petitions in
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Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

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

                             *********

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

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez,
Cecil R. Villacampa, Melanie C. Pador, Ludivino Q. Climaco, Jr.,
Loyda I. Nartatez, Tara Marie A. Martin, Philline P. Reluya,
Joseph Medel C. Martirez, Ma. Cristina I. Canson, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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herein is obtained from sources believed to be reliable, but is
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                    *** End of Transmission ***