/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/080809.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, Aug. 9, 2008, Vol. 12, No. 189 Headlines AMPEX CORP: Reports $1,883,000 Net Loss in May 25 to June 28 ASARCO LLC: Earns $24,416,000 in Month Ended June 30, 2008 ATA AIRLINES: Delivers Operating Report for June 1 to 30, 2008 CHARYS HOLDING: Delivers Feb. 15 to March 31, 2008 Report CHARYS HOLDING: Misses Filing of April 2008 Operating Report CHARYS HOLDING: Delivers May 2008 Monthly Operating Report FEDDERS CORP: Submits April 2008 Monthly Operating Report FEDDERS CORP: Submits May 2008 Monthly Operating Report FRONTIER AIRLINES: Posts $8,835,000 Net Loss in June 2008 KIMBALL HILL: Delivers June 2008 Monthly Operating Report KIMBALL HILL: Amends Schedules of Assets and Liabilities KIMBALL HILL: KH California Amends Schedules of Assets and Debts KIMBALL HILL: KH Houston Amends Schedules of Assets & Liabilities KIMBALL HILL: KH Nevada Amends Schedules of Assets and Liabilities KIMBALL HILL: 11 Affiliates Amend Schedules of Assets and Debts KIMBALL HILL: 14 Affiliates Amend Schedules of Assets and Debts LINENS 'N THINGS: Files Operating Report for June 28, 2008 NETBANK INC: Delivers June 2008 Monthly Operating Report PACIFIC LUMBER: Scotia Dev't Files June 2008 Operating Report PACIFIC LUMBER: Scotia Pacific Files June 2008 Operating Report PERFORMANCE TRANS: Liquidating Trustee Submits April 2008 Report PERFORMANCE TRANS: Liquidating Trustee Submits May 2008 Report PERFORMANCE TRANS: Liquidating Trustee Submits June 2008 Report PRC LLC: Posts $8,655,000 Net Loss in Month Ended June 30, 2008 SHARPER IMAGE: Files June 30, 2008 Operating Report TARPON INDUSTRIES: Files June 2008 Monthly Operating Report TARPON INDUSTRIES: Eugene Welding Files June 2008 Report TRICOM SA: Reports $20,647 Net Earnings in March 2008 TRICOM SA: Reports $795,816 Net Loss in April 2008 TRICOM SA: Reports $1,515,337 Net Loss in May 2008 TRICOM SA: Reports $2,337,457 Net Loss in June 2008 ZIFF DAVIS: Submits June 2008 Monthly Operating Report ********* AMPEX CORP: Reports $1,883,000 Net Loss in May 25 to June 28 ------------------------------------------------------------ Ampex Corp. and its debtor-affiliates filed their monthly operating report for the period from May 25, 2008 through June 28, 2008. Consolidated balance sheet as of June 28, 2008, showed total assets of $23,018,000, total liabilities of $133,941,000, stockholders' deficit of $110,923,000. Debtor-in-possession balance sheet as of June 28, 2008, showed total assets of $18,100,000, total liabilities of $130,339,000, stockholders' deficit of $112,239,000. Total revenue for the period was $3,489,000 and net loss was $1,883,000. A full-text copy of the Debtors' May 25 to June 28, 2008 monthly operating report is available for free at: http://ResearchArchives.com/t/s?3087 About Ampex Corp. Headquartered in Redwood City, California, Ampex Corp. -- http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual information technology. The company has two business segments: Recorders segment and Licensing segment. The Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. The Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. On March 30, 2008, Ampex Corp. and six affiliates filed for protection under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York (Case Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq., and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors in their restructuring efforts. The Debtors have also retained Conway Mackenzie & Dunleavy as their financial advisors. In its schedules of assets and liabilities filed with the Court, Ampex Corp. disclosed total assets of $9,770,089 and total debts of $82,488,054. The Debtors have nine foreign affiliates that are incorporated in seven countries -- one each in the United Kingdom, Japan, Belgium, Colombia and Brazil and two each in Germany and Mexico. With the exception of the affiliates located in the U.K. and Japan, none of the other foreign affiliates conduct meaningful business activity. As of March 30, 2008, none of the foreign affiliates have commenced insolvency proceedings. On July 9, 2008, the Court confirmed the Debtors' first modified third amended joint Chapter 11 plan of reorganization. ASARCO LLC: Earns $24,416,000 in Month Ended June 30, 2008 ---------------------------------------------------------- ASARCO LLC, et al. Balance Sheet As of June 30, 2008 ASSETS Current Assets: Cash $1,130,059,000 Restricted Cash 25,586,000 Accounts receivable, net 186,760,000 Inventory 303,462,000 Prepaid expenses 5,230,000 Other current assets 15,463,000 -------------- Total Current Assets 1,666,560,000 Net property, plant and equipment 503,001,000 Other Assets Investments in subs 99,769,000 Advances to affiliates 605,000 Prepaid pension & retirement plan 0 Non-current deferred tax asset 40,951,000 Other 69,101,000 -------------- Total assets $2,379,987,000 ============== LIABILITIES Postpetition liabilities: Accounts payable $82,628,000 Accrued liabilities 670,134,000 Debtor-in-possession financing 0 -------------- Total postpetition liabilities 752,762,000 Prepetition liabilities: Not subject to compromise - credit 3,516,000 Not subject to compromise - other 78,457,000 Advances from affiliates 24,736,000 Subject to compromise 1,719,092,000 -------------- Total prepetition liabilities 1,825,802,000 -------------- Total liabilities $2,578,564,000 ============== OWNERS' EQUITY (DEFICIT) Common stock 508,324,000 Additional paid-in capital 104,578,000 Other comprehensive income (218,855,000) Retained earnings: filing date (1,673,410,000) -------------- Total prepetition owners' equity (1,279,363,000) Retained earnings: post-filing date 1,080,787,000 -------------- Total owners' equity (net worth) (198,575,000) Total liabilities and owners' equity $2,379,987,000 ============== ASARCO LLC, et al. Consolidated Statement of Operations Month Ended June 30, 2008 Sales $150,127,000 Cost of products and services 80,118,000 -------------- Gross profit 70,009,000 Operating expenses: Selling and general & admin expenses 3,973,000 Depreciation & amortization 3,030,000 Accretion expense 103,000 -------------- Operating income 62,904,000 Interest expense 2,000 Interest income (3,209,000) Reorganization expenses 14,300,000 Other miscellaneous (income) expenses (9,139,000) -------------- Income (loss) before taxes 60,949,000 Income taxes 24,416,000 -------------- Net income (loss) $24,416,000 ============== ASARCO LLC, et al. Consolidated Cash Receipts & Disbursements Month Ended June 30, 2008 Receipts $164,608,000 Disbursements: Inventory material 17,419,000 Operating disbursements 69,774,000 Capital expenditures 2,572,000 -------------- Total disbursements 89,766,000 Operating cash flow 74,842,000 Reorganization disbursements 7,655,000 -------------- Net cash flow 67,187,000 Net payments to secured Lenders 0 -------------- Net change in cash 67,187,000 Beginning cash balance 1,088,458,000 -------------- Ending cash balances $1,155,645,000 ============== About ASARCO LLC 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). The Debtors submitted to the Court a joint plan of reorganization and disclosure statement on July 31, 2008. (ASARCO Bankruptcy News, Issue No. 78; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ATA AIRLINES: Delivers Operating Report for June 1 to 30, 2008 -------------------------------------------------------------- ATA Airlines, Inc., Chief Restructuring Officer Steve Turoff filed with the Court the airlines' monthly operating report for the period June 1 to 30, 2008. For the month of June, Mr. Turoff disclosed, ATA Airlines had $1,007,061 in cash loss and $2,072,117 in total payables. The total professional fee incurred by or on behalf of ATA Airlines during the reporting period is $802,571, of which $794,448 was incurred related to bankruptcy. ATA Airlines, Inc. Receipts and Disbursements Month Ended June 30, 2008 RECEIPTS Military - Charter - Scheduled Service - Asset Sales--Inventory - Asset Sales--Ground Equipment $408,530 Asset Sales--Rotables - Return of Deposits/Prepaids 685,760 Cash Collateral/LOCs 82,832 Interest 15,746 Miscellaneous 738,686 ------------ Total $1,931,555 ============ DISBURSEMENTS: Base Payroll Inc. All Taxes 610,750 Stay Bonus 109,807 Benefits 55,976 Employee Expense Payments 4,273 Facilities 105,079 Utilities/Communications 138,120 Contract Labor 20,737 Professionals 1,024,116 US Trustee - Aircraft Ferry Cost 13,461 Engine Changes/Certificate Mx 19,276 Insurance--D&O/Misc. - Health Insurance Run-off Reserve - Cobra Reserve 900,000 Security - Shipping/Cargo 94,474 Returned Checks (204,885) Miscellaneous 47,432 ------------ Total $2,938,616 ============ Beginning Balance 23,732,707 Receipts 1,931,555 Disbursements (2,938,616) ------------ Ending Balance $22,725,645 ============ About ATA Airlines Headquartered in Indianapolis, Indiana, ATA Airlines, Inc., is a diversified passenger airline operating in two principal business lines -- a low cost carrier providing scheduled passenger service that leverages a code share agreement with Southwest Airlines; and a charter operator that focused primarily on providing charter service to the U.S. government and military. ATA is a wholly owned subsidiary of New ATA Acquisition, Inc. -- a wholly owned subsidiary of New ATA Investment, Inc., which in turn, is a wholly owned subsidiary of Global Aero Logistics Inc. ATA Acquisition also owns another holding company subsidiary, World Air Holdings, Inc., which it acquired through merger on August 14, 2007. World Air Holdings owns and operates two other airlines, North American Airlines and World Airways. ATA Airlines and its affiliates filed for chapter 11 protection on Oct. 26, 2004 (Bankr. S.D. Ind. Case Nos. 04-19866, 04-19868 through 04-19874). The Honorable Basil H. Lorch III confirmed the Debtors' plan of reorganization on Jan. 31, 2006. The Debtors' emerged from bankruptcy on Feb. 28, 2006. Global Aero Logistics acquired certain of ATA's operations after its first bankruptcy. The remaining ATA affiliates that were not substantively consolidated in the company's first bankruptcy case were sold or otherwise liquidated. ATA Airlines filed for Chapter 22 on April 2, 2008 (Bankr. S.D. Ind. Case No. 08-03675), citing the unexpected cancellation of a key contract for ATA's military charter business, which made it impossible for ATA to obtain additional capital to sustain its operations or restructure the business. ATA discontinued all operations subsequent to the bankruptcy filing. ATA's Chapter 22 bankruptcy petition lists assets and liabilities each in the range of $100 million to $500 million. The Debtor is represented in its Chapter 22 case by Haynes and Boone, LLP, and Baker & Daniels, LLP, as bankruptcy counsel. The United States Trustee for Region 10 appointed five members to the Official Committee of Unsecured Creditors. Otterbourg, Steindler, Houston & Rosen, P.C., serves as bankruptcy counsel to the Committee. FTI Consulting, Inc., acts as the panel's financial advisors. The Court gave ATA Airlines Inc. until Feb. 26, 2009, to file its Chapter 11 plan and April 27, 2009, to solicit acceptances of that plan. (ATA Airlines Bankruptcy News, Issue No. 88; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000). CHARYS HOLDING: Delivers Feb. 15 to March 31, 2008 Report --------------------------------------------------------- Charys Holding Co., Inc., filed its monthly operating report for the period Feb. 15, 2008, through March 31, 2008: Cash at the beginning of the month $347 Total receipts 559,997 Total Disbursements 383,362 Cash at the end of the month $176,982 A full-text copy of the Debtor's monthly operating report is available for free at http://ResearchArchives.com/t/s?3082 About Charys Holding Headquartered in Atlanta, Georgia, Charys Holding Co., Inc., -- http://www.charys.com/-- provides remediation & reconstruction and wireless communications & data infrastructure. The company and its Crochet & Borel Services, Inc. subsidiary filed for Chapter 11 protection on Feb. 14, 2008 (Bankr. Del. Case No.08- 10289). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in these cases to date. The Debtors' schedules show total assets of $818,880 and total liabilities of $286,416,560. CHARYS HOLDING: Misses Filing of April 2008 Operating Report ------------------------------------------------------------ Charys Holding Co., Inc. did not file with the U.S. Securities and Exchange Commission its monthly operating report for the period April 1, 2008, through April 30, 2008. About Charys Holding Headquartered in Atlanta, Georgia, Charys Holding Co., Inc., -- http://www.charys.com/-- provides remediation & reconstruction and wireless communications & data infrastructure. The company and its Crochet & Borel Services, Inc. subsidiary filed for Chapter 11 protection on Feb. 14, 2008 (Bankr. Del. Case No.08- 10289). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in these cases to date. The Debtors' schedules show total assets of $818,880 and total liabilities of $286,416,560. CHARYS HOLDING: Delivers May 2008 Monthly Operating Report ---------------------------------------------------------- Charys Holding Co., Inc. filed its monthly operating report for May 2008: Cash at the beginning of the month $80,522 Total receipts 265,000 Total Disbursements 341,642 Cash at the end of the month $3,880 A full-text copy of the Chary's May 2008 schedule of cash receipts and disbursements is available for free at: http://ResearchArchives.com/t/s?3084 For the period May 1 to May 31, 2008, Charys generated $1,300,000 in gross revenues and net profit of $215,921. A full-text copy of the Chary's May 2008 statement of operations is available for free at: http://ResearchArchives.com/t/s?3085 As of May 31, 2008, Chary's had total assets of $231,696,891, total liabilities of $375,979,855, and stockholders' deficit of $144,282,964. A full-text copy of the Chary's May 2008 balance sheet is available for free at http://ResearchArchives.com/t/s?3086 About Charys Holding Headquartered in Atlanta, Georgia, Charys Holding Co., Inc., -- http://www.charys.com/-- provides remediation & reconstruction and wireless communications & data infrastructure. The company and its Crochet & Borel Services, Inc. subsidiary filed for Chapter 11 protection on Feb. 14, 2008 (Bankr. Del. Case No.08- 10289). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in these cases to date. The Debtors' schedules show total assets of $818,880 and total liabilities of $286,416,560. FEDDERS CORP: Submits April 2008 Monthly Operating Report --------------------------------------------------------- Fedders Corporation and its affiliates filed their monthly operating report for April 2008. Net sales for the month were $2,631,000 and net loss for the month was $5,994,000. As of April 30, 2008, Fedders entities posted total assets of $104,100,000, total liabilities of $320,862,000, and stockholders' deficit of $216,762,000. A full-text copy of the companies' April 2008 monthly operating report is available for free at: http://ResearchArchives.com/t/s?2ed0 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 and several affiliates filed for Chapter 11 protection on Aug. 22, 2007, (Bankr. D. Del. Lead Case No. 07-11182). The law firm of Cole, Schotz, Meisel, Forman & Leonard P.A.; and Norman L. Pernick, Esq., Irving E. Walker, Esq., and Adam H. Isenberg, Esq., at Saul Ewing 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. When the Debtors filed for protection from its creditors, it listed total assets of $186,300,000 and total debts of $322,000,000. Fedders Corporation and its debtor-affiliates have filed a joint plan of liquidation. The disclosure statement explaining that plan was approved by the Court on June 6, 2008. Plan confirmation hearing is slated for Aug. 21, 2008. FEDDERS CORP: Submits May 2008 Monthly Operating Report ------------------------------------------------------- Fedders Corporation and its affiliates filed their monthly operating report for May 2008. Net sales for the month were $2,857,000 and net loss for the month was $5,197,000. As of May 31, 2008, Fedders entities posted total assets of $94,626,000, total liabilities of $316,374,000, and stockholders' deficit of $221,748,000. A full-text copy of the companies' May 2008 monthly operating report is available for free at: http://ResearchArchives.com/t/s?3081 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 and several affiliates filed for Chapter 11 protection on Aug. 22, 2007, (Bankr. D. Del. Lead Case No. 07-11182). The law firm of Cole, Schotz, Meisel, Forman & Leonard P.A.; and Norman L. Pernick, Esq., Irving E. Walker, Esq., and Adam H. Isenberg, Esq., at Saul Ewing 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. When the Debtors filed for protection from its creditors, it listed total assets of $186,300,000 and total debts of $322,000,000. Fedders Corporation and its debtor-affiliates have filed a joint plan of liquidation. The disclosure statement explaining that plan was approved by the Court on June 6, 2008. Plan confirmation hearing is slated for Aug. 21, 2008. FRONTIER AIRLINES: Posts $8,835,000 Net Loss in June 2008 --------------------------------------------------------- FRONTIER AIRLINES HOLDINGS INC., ET AL. Unaudited Consolidated Balance Sheet As of June 30, 2008 ASSETS CURRENT ASSETS: Cash and cash equivalents $59,314,000 Short-term investments 7,480,000 Restricted investments 115,503,000 Receivables, net of an allowance for doubtful accounts 60,690,000 Security and other deposits - Prepaid expenses and other assets 29,279,000 Inventories, net of allowance 18,883,000 Assets held for sale 959,000 -------------- Total current assets 292,108,000 Property and other equipment, net 811,547,000 Security and other deposits 25,499,000 Aircraft pre-delivery payments 13,985,000 Restricted investments 2,845,000 Deferred loan expenses and other assets 15,511,000 -------------- Total Assets $1,161,495,000 ============== LIABILITIES AND STOCKHOLDERS' DEFICIT Liabilities not subject to compromise: CURRENT LIABILITIES: Accounts payable $40,722,000 Air traffic liability 236,904,000 Other accrued expenses 58,872,000 Deferred revenue and other current liabilities 18,352,000 PDP financing 3,139,000 -------------- Total current liabilities not subject to compromise 357,989,000 Deferred revenue and other liabilities 23,462,000 -------------- Total liabilities not subject to compromise 381,451,000 Liabilities subject to compromise 684,802,000 -------------- Total Liabilities 1,066,253,000 STOCKHOLDERS' DEFICIT: Preferred stock - Common stock 37,000 Additional paid-in capital 196,232,000 Unearned ESOP shares (411,000) Other comprehensive loss - Accumulated deficit (100,616,000) -------------- Total Stockholders' Equity 95,242,000 -------------- Total Liabilities and Stockholders' Equity $1,161,495,000 ============== FRONTIER AIRLINES HOLDINGS, INC., ET AL Unaudited Consolidated Statement of Operations Month Ended June 30, 2008 Revenues: Passenger $127,999,000 Cargo 589,000 Other 3,481,000 -------------- Total revenues 132,069,000 Operating expenses: Flight operations 14,314,000 Aircraft fuel 65,969,000 Aircraft lease 9,862,000 Aircraft and traffic servicing 15,538,000 Maintenance 9,375,000 Promotion and sales 10,166,000 General and administrative 2,476,000 Operating expenses -- regional partner 2,864,000 Loss (gain) on sales of assets, net 373,000 Employee separation and other charges 570,000 Depreciation 3,717,000 -------------- Total operating expenses 135,224,000 -------------- Operating loss (3,155,000) Non-operating income (expense): Interest income 374,000 Interest expense (1,393,000) Loss from early extinguishment of debt - Other, net (1,294,000) -------------- Total non-operating expense, net (2,313,000) Loss before reorganization items & income taxes (5,468,000) Reorganization items 3,367,000 Income taxes - -------------- Net Loss ($8,835,000) ============== FRONTIER AIRLINES HOLDINGS, INC., ET AL. Unaudited Consolidated Statement of Cash Flow Month Ended June 30, 2008 Cash flows from operating activities: Net Loss ($8,835,000) Adjustments to reconcile net loss to net cash in operating activities: ESOP and stock option compensation expense 211,000 Depreciation and amortization 3,784,000 Assets beyond economic repair 176,000 Mark to market losses on derivative contracts - (Loss) Gain on disposal of equipment and other assets, net 373,000 Loss on early extinguishment of debt - Unrealized loss on short-term investments 1,320,000 Changes in operating assets and liabilities: Restricted investments (15,023,000) Receivables 8,865,000 Security and other deposits (177,000) Prepaid expenses and other assets 3,265,000 Inventories 1,070,000 Other assets (584,000) Accounts payable (23,654,000) Air traffic liability (9,914,000) Other accrued expenses (2,937,000) Deferred revenue and other liabilities (245,000) -------------- Net cash used in operating activities (42,305,000) Cash flows from investing activities: Proceeds from the sale of property and assets held for sale 101,000 Capital expenditures (599,000) -------------- Net cash used in investing activities (498,000) Cash flows from financing activities: Extinguishment of long-term borrowings - Principal payments on long-term borrowings (7,858,000) Payment of financing fees (83,000) -------------- Net cash used in financing activities (7,941,000) Decrease in cash and cash equivalents (50,744,000) Cash and cash equivalents at beginning of period 110,058,000 -------------- Cash and cash equivalents at end of period $59,314,000 ============== About Frontier Airlines Inc. Headquartered in Denver, Colorado, Frontier Airlines Inc. -- http://www.frontierairlines.com/-- provide air transportation for passengers and freight. They operate jet service carriers linking their Denver, Colorado hub to 46 cities coast-to-coast, 8 cities in Mexico, and 1 city in Canada, well as provide service from other non-hub cities, including service from 10 non-hub cities to Mexico. As of May 18, 2007 they operated 59 jets, including 49 Airbus A319s and 10 Airbus A318s. The Debtor and its debtor-affiliates filed for Chapter 11 protection on April 10, 2008, (Bankr. S.D. N.Y. Case No.: 08- 11297 thru 08-11299.) Hugh R. McCullough, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Togul, Segal & Segal LLP is the Debtors' Conflicts Counsel, Faegre & Benson LLP is the Debtors' Special Counsel, and Kekst and Company is the Debtors' Communications Advisors. At Dec. 31, 2007, Frontier Airlines Holdings Inc. and its subsidiaries' total assets was $1,126,748,000 and total debts was $933,176,000. (Frontier Airlines Bankruptcy News, Issue No. 15; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) KIMBALL HILL: Delivers June 2008 Monthly Operating Report --------------------------------------------------------- Kimball Hill, Inc. Summary of Cash Receipts and Disbursements For the Period from June 1 to 30, 2008 Beginning Cash Balance $84,701,355 Receipts from operations Accounts receivable receipts 32,290,717 Notes receivable receipts 0 Accts. Receivable collection for non-debtors 2,747,945 Other receipts Interest income 73,793 Proceeds from sale of fixed assets 0 Oil exploration revenue 229,851 Income tax refunds 0 Customer deposits 380,764 Customer deposits for non-debtors 5,000 Miscellaneous receipts 266,353 ------------- Total Receipts $35,994,423 ------------- Disbursements Payroll Officers 436,556 Others 2,107,483 Total Payroll ------------- 2,544,040 Taxes Federal income tax 553,633 FICA withholdings 238,083 Employee's withholdings 0 Employer's FICA 238,084 Federal unemployment taxes 492 State income tax 50,705 State employee withholdings 0 All other state taxes 2,285 State unemployment taxes 2,741 ------------- Total Taxes 1,086,023 Necessary expenses Homebuilding costs 15,613,847 Debt and interest payments 1,341,711 General and administrative costs 2,469,177 Permits 869,401 Land and land Development 3,667,293 Medical health claims 398,450 Customer deposit refunds 63,038 401K funding 190,869 Texas sales taxes 118,028 Professional fees 983,499 Warranty costs 298,908 Flex spending reimbursements 8,084 ------------- Total Necessary Expenses 26,022,305 Total Disbursements 29,652,367 ------------- Net receipts for the period 6,342,056 Ending Cash Balance $91,043,411 ============= 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 have until Aug. 21, 2008, to exclusively file a bankruptcy plan. (Kimball Hill Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). KIMBALL HILL: Amends Schedules of Assets and Liabilities -------------------------------------------------------- Bradley R. Grining, vice president and controller of Kimball Hill Inc., discloses that certain creditors have been added to the company's schedules of unsecured non-priority claims, a full- text copy of which is available for free at: http://researcharchives.com/t/s?3041 Mr. Grining adds that Kimball Hill's Schedule B has been revised to read as personal property inventory, rather than real property inventory. The revision is consistent with the Debtor's treatment of its inventory, consisting of land held for resale, for accounting and tax purposes. Certain of Kimball Hill's security deposits with certain public utilities and other parties have not been listed in the Schedules, the company notes. 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 have until Aug. 21, 2008, to exclusively file a bankruptcy plan. (Kimball Hill Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). KIMBALL HILL: KH California Amends Schedules of Assets and Debts ---------------------------------------------------------------- Bradley R. Grining, vice president and controller of Kimball Hill Inc., relates that Kimball Hill Homes California, Inc., have quantified certain previously undetermined secured claims in its Schedules of Assets and Liabilities, increasing the reported claims by $10,756,547. The additional secured claims are: Claimant Claim Amount -------- ------------ B&D, Inc. $260,000 Creative Touch Interiors 10,000,000 Premier Landscapes 70,000 Prosiding, Inc. 5,695 Valley Landscaping 420,852 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 have until Aug. 21, 2008, to exclusively file a bankruptcy plan. (Kimball Hill Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). KIMBALL HILL: KH Houston Amends Schedules of Assets & Liabilities ----------------------------------------------------------------- Bradley R. Grining, vice president and corporate controller of Kimball Hill Inc., relates that Kimball Hill Homes Houston, L.P., has revised Schedule F of its Schedules to reflect total unsecured non-priority claims, aggregating $232,863,550. The revised amount includes a $126,000 claim by MA Sedona Lakes, LP, pertaining to an agreement to purchase a real property located in Houston, Texas. 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 have until Aug. 21, 2008, to exclusively file a bankruptcy plan. (Kimball Hill Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). KIMBALL HILL: KH Nevada Amends Schedules of Assets and Liabilities ------------------------------------------------------------------ The Schedules of Assets and Liabilities of Kimball Hill Nevada, Inc., reflect additional unsecured non-priority claims in unquantified amounts that includes claims by Chicago Title, among others. A full-text copy of Kimball Hill Nevada's revised Schedule is available for free at: http://researcharchives.com/t/s?305b 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 have until Aug. 21, 2008, to exclusively file a bankruptcy plan. (Kimball Hill Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). KIMBALL HILL: 11 Affiliates Amend Schedules of Assets and Debts --------------------------------------------------------------- Eleven debtor-affiliates of Kimball Hill Inc. amend their Schedules of Assets and Liabilities to disclose a revision to Kimball Hill's Global Notes attached to each of the debtor- affiliates' Schedules. The 11 debtor affiliates are: * Kimball Hill Urban Centers, L.L.C., * Kimball Hill Homes Texas Investments, L.L.C., * Kimball Hill Stateway, Inc., * Kimball Hill Homes Texas Operations, L.L.C., * Kimball Hill Urban Centers Special Purposes, LLC, * Kimball Hill Homes Ohio, Inc. * Kimball Hill Urban Centers Chicago Two, L.L.C., * Kimball Hill Homes Wisconsin, Inc., * KH Financial Holding Company, * Kimball Hill Texas Investment Company, L.L.C., and * Kimball Hill Homes Realty Florida, Inc. Parent Kimball Hill's revised Global Notes to its Schedules of Assets and Liabilities and Statement of Financial Affairs indicate that Schedule B, which includes inventory of land assets held for resale by the Debtor, should be captioned as "Personal Property Inventory" rather than "Real Property Inventory" as was initially reported. Parent Kimball Hill and its debtor affiliates report their financial statements on a consolidated basis. 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 have until Aug. 21, 2008, to exclusively file a bankruptcy plan. (Kimball Hill Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). KIMBALL HILL: 14 Affiliates Amend Schedules of Assets and Debts --------------------------------------------------------------- A total of 14 debtor-affiliates of Kimball Hill Inc. amend their Schedules of Assets and Liabilities to reflect certain changes to Kimball Hill, Inc.'s Global Notes: * Kimball Hill Homes Dallas, L.P., * Kimball Hill Homes Florida, Inc., * Kimball Hill Homes Austin, L.P., * KHH Texas Trading Company, L.P., * 18th and Peoria, LLC, * Kimball Hill Homes San Antonio, L.P., * Kimball Hill Homes Washington, Inc., * Kimball Hill Homes Texas, Inc., * National Credit and Guaranty Corp., * Kimball Hill Far East Detroit, LLC, * Kimball Hill Urban Centers Chicago One L.L.C., * The Hamilton Place Partnership, * KH Ingham Park South, LLC, and * Kimball Hill Homes Oregon, Inc. Moreover, the Schedules of certain of the debtor affiliates indicate changes in total liabilities reported: Debtor Debts, as revised ------ ----------------- Kimball Hill Homes Dallas, L.P. $580,642,726 Kimball Hill Homes Florida, Inc. 599,206,464 Kimball Hill Homes Austin, L.P. 549,065,554 Kimball Hill Homes San Antonio, L.P. 545,472,682 National Credit and Guaranty Corp. 530,374,667 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 have until Aug. 21, 2008, to exclusively file a bankruptcy plan. (Kimball Hill Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). LINENS 'N THINGS: Files Operating Report for June 28, 2008 ---------------------------------------------------------- Linens 'N Things and its debtor-affiliates submitted to the United States Bankruptcy Court for the District of Delaware its operating report for the month ended June 28, 2008: Linens Holding Co., et al. Balance Sheet As of June 28, 2008 Assets Current Assets Cash $29,234,466 Accounts receivable, net 38,019,033 Inventory 547,974,178 Prepaid expenses 39,502,100 ------------- Total Current Assets 654,729,777 Property & Equipment Building 5,010,000 Furniture & fixtures 272,972,004 Hardware 13,611,010 Leasehold improvements 179,132,427 Land 1,030,400 Software 8,689,658 Less: accumulated depreciation (205,858,028) ------------- Total Property & Equipment 274,587,471 Other Assets Identifiable intangible 135,179,986 Goodwill 253,159,671 Other non-current assets 38,828,054 ------------- Total other assets 427,167,711 ------------- Total Assets $1,356,484,959 ============= Liabilities and Shareholders' Equity Liabilities not subject to compromise Current liabilities Merchandise accounts payable $8,577,561 Merchandise accruals, refunds & allowances 57,213,512 Due to customers 1,551,592 Salaries and wages 7,417,659 Taxes, non-franchise and income tax 13,217,958 Workers compensation 136,651 Current retirement plans 72,350 Rent - General liability claims 133,217 Accrued auto claims & uninsured losses 17,694 Other accrued liabilities 61,831,341 ------------- Total Current Liabilities 150,169,535 Long Term Liabilities Long-term borrowings 175,410,355 Non-current deferred income - Other liabilities 984,578 ------------- Total long term liabilities 176,394,933 ------------- Total liabilities not subject to compromise 326,564,468 Liabilities subject to compromise L/T senior secured note 668,914,007 Unsecured claims 352,512,084 Priority claims 27,604,901 Other accruals and reserves - ------------- Total Liabilities Subject to Compromise 1,049,030,992 ------------- Total Liabilities 1,375,595,460 Shareholders' Equity Common stock 130,130 Additional paid-in capital 600,966,833 Retained earnings - prepetition (536,191,697) Retained earnings - postpetition (87,101,951) Currency gain/loss 3,086,184 ------------- Net shareholders' equity (19,110,501) ------------- Total Liabilities and Shareholders' Equity $1,356,484,959 ============= Linens Holding Co., et al Income Statement For the month ending June 28, 2008 Gross revenues $138,221,282 Rebates and returns 2,304,652 Cost of goods sold (68,158,032) ------------- Initial Mark On (IMO) 72,367,902 Markdowns 14,495,056 Gross allowances (1,646,405) Deferred allowances (8,036,175) ------------- Total markdowns - net 4,812,476 ------------- Merchant margin 67,555,426 Supply chain expenses (6,517,004) Buying, product development, shrink (4,136,017) ------------- Gross profit 56,902,405 Store payroll expense (18,703,759) Other store selling expenses (5,315,622) ------------- Total selling expense (24,019,381) ------------- Margin after selling expenses 32,883,024 Occupancy (33,499,276) Sales promotions (1,344,202) Other store expenses (1,792,384) Store closing expense - Supervisory/Other (1,152,177) ------------- Total store expenses (37,788,039) ------------- Store contribution (4,905,015) Administrative salaries (2,641,587) Other administrative expenses (4,908,162) Other income/(expense) (10,955,725) Interest (2,242,945) Taxes (676,051) ------------- Total General & Administrative (21,424,470) ------------- Net Earnings [Loss] (26,329,485) ------------- Reorganization Items (29,719,957) ------------- Net Earnings [Loss] after reorg. items ($56,049,442) ============= Linens Holding Co., et al. Schedule of Cash Receipts and Disbursements For the month ending June 28, 2008 Cash Receipts: Sales receipts $170,895,000 Other receipts, i.e. tenant allow. 2,059,000 Store closure proceeds 110,546,000 ------------- Total receipts 283,500,000 Cash Disbursements: Trade payments: A/P - Merchandise 67,288,000 Rollover A/P - Prepaid - A/P - LC's & Trade Card 8,768,000 A/P - LAPP - ------------- Total trade payments 76,056,000 Operating Expenses: Payroll, payroll taxes & benefits 31,957,000 Rent checks and wires 20,549,000 Marketing 3,004,000 Capital expenditures - Freight 6,928,000 Sales tax payable 10,673,000 Other (Import duties, misc. CC fees) 15,862,000 Administrative & selling expenses - ------------- Total operating expenses 88,973,000 Non-Operating Expenses: DIP & revolver interest & fees - Other Interest Expense / (Income) 4,000 ------------- Total non-pperating expenses 4,000 ------------- Net operating cash flow 118,466,000 Bankruptcy Expenses: DIP fees & expenses - Deposits for utilities 1,485,000 Professional fees 1,289,000 ------------- Total Bankruptcy Expenses 2,774,000 ------------- Net Cash Flows 115,692,000 ------------- Draw / (Paydown) of DIP Facility (126,004,000) ------------- Net Change in Cash ($10,312,000) ============= Clifton, New Jersey-based Linens 'n Things, Inc. -- http://www.lnt.com/-- is the second largest specialty retailer of home textiles, housewares and home accessories in North America operating 589 stores in 47 U.S. states and seven Canadian provinces as of Dec. 29, 2007. The company is a destination retailer, offering one of the broadest and deepest selections of high quality brand-name as well as private label home furnishings merchandise in the industry. Linens 'n Things has some 585 superstores (33,000 sq. ft. and larger), emphasizing low-priced, brand-name merchandise, in more than 45 states and about seven Canadian provinces. Brands include Braun, Krups, Calphalon, Laura Ashley, Croscill, Waverly, and the company's own label. Linens 'n Things was acquired by private equity firm Apollo Management in 2006. On May 2, 2008, these Linens entities filed chapter 11 petition (Bankr. D. Del.): Linens Holding Co. (08-10832), Linens 'n Things, Inc. (08-10833), Linens 'n Things Center, Inc. (08-10834), Bloomington, MN., L.T., Inc. (08-10835), Vendor Finance, LLC (08- 10836), LNT, Inc. (08-10837), LNT Services, Inc. (08-10838), LNT Leasing II, LLC (08-10839), LNT West, Inc. (08-10840), LNT Virginia LLC (08-10841), LNT Merchandising Company LLC (08-10842), LNT Leasing III, LLC (08-10843), and Citadel LNT, LLC (08-10844). Judge Christopher S. Sontchi presides over the case. The Debtors' bankruptcy counsels are Mark D. Collins, Esq., John H. Knight, Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A. The Debtor's special corporate counsels are Holland N. O'Neil, Esq., Ronald M. Gaswirth, Esq., Stephen A. McCartin, Esq., Randall G. Ray, Esq., and Michael S. Haynes, Esq., at Gardere Wynne Sewell LLP; and Howard S. Beltzer, Esq., and Wendy S. Walker, Esq., at Morgan, Lewis & Bockius LLP. The Debtors' restructuring management services provider is Conway, Del Genio, Gries & Co., LLC. The Debtors' CRO/Interim CEO is Michael F. Gries, co-founder of Conway Del Genio Gries & Co., LLC. The Debtors' claims agent is Kurtzman Carson Consultants LLC. The Debtors' consultants are Asset Disposition Advisors, LLC, and Protiviti, Inc. Their investment bankers are Financo, Inc. and Genuity Capital Markets. The Official Committee of Unsecured Creditors is represented by Cole, Schotz, Meisel, Forman & Leonard, P.A. Carl Marks Advisory Group LLC serves as financial advisor to the Creditors' Committee. A Noteholder Committee has been formed and is represented by Kasowitz, Benson, Torres & Friedman LLP, and Pachulski Stang Ziehl & Jones. (Bankruptcy News About Linens 'n Things, Issue No. 14; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) NETBANK INC: Delivers June 2008 Monthly Operating Report -------------------------------------------------------- NetBank Inc. filed its monthly operating report for the period June 1, 2008, through June 30, 2008, disclosing: Funds at the beginning of period $6,996,194 Total receipts 68,610 Total funds for operations 7,064,805 Total disbursements 279,559 Ending balance $6,785,245 A full-text copy of the Debtor's June 2008 monthly operating report is available for free at: http://ResearchArchives.com/t/s?3080 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. PACIFIC LUMBER: Scotia Dev't Files June 2008 Operating Report ------------------------------------------------------------- Scotia Development LLC, et al. Consolidated Balance Sheet As of June 30, 2008 ASSETS Current Assets Cash $1,040,292 Accounts receivable, net 4,918,957 Inventory: lower cost or market 7,771,169 Prepaid expenses 5,511,487 Prepaid Restructuring 100,000 Investments 0 Other 79,960 ------------ Total Current Assets 19,421,865 Property, Plant & Equipment 185,418,906 Less: Accumulated Depreciation (121,325,470) ------------ Net book value of property & plant 64,093,436 Other Assets Notes Receivable 551,959 Deferred Financing Costs 3,226,208 Long-term Investments 3,416,823 Restricted Cash 2,592,844 Restricted Cash -- L.C. Collateralization 10,862,851 Deferred Tax Assets 13,313,381 ------------ TOTAL ASSETS $117,479,367 ============ LIABILITIES & OWNERS EQUITY Postpetition Liabilities Trade accounts payable $918,793 Tax payable Federal payroll taxes 44,614 State payroll taxes 5,576 Ad valorem taxes 0 Other taxes 1,301,157 ------------ Total taxes payable 1,351,348 Secured debt postpetition 75,000,000 Accrued interest payable 6,734,915 Accrued professional fees 10,623,678 Other accrued liabilities Trade Accruals 3,588,219 Compensation and benefits 2,046,185 Other accrued 1,096,596 Due to (from) affiliate/parent 11,174,729 ------------ Total Postpetition Liabilities 112,534,462 Prepetition Liabilities Notes payable - Secured 80,832,888 Priority debt 3,160,656 Federal income tax (17,006) FICA/ Withholding 0 Unsecured debt 2,256,234 Other 27,627,242 Due to Affiliate/Parent 41,661,505 ------------ Total Prepetition Liabilities 155,521,519 ------------ Total Liabilities 268,055,981 Owner's Equity (Deficit) Equity in Affiliates 581,535,576 Common Stock 1,001 Additional Paid-in Capital 275,546,288 Retained Earnings: Filing Date (792,985,229) Retained Earnings: Post Filing Date (214,674,250) ------------ Total Owner's Equity (150,576,614) ------------ TOTAL LIABILITIES & OWNERS EQUITY $117,479,367 ============ Scotia Development LLC, et al. Statement of Income For the Period Ended June 30, 2008 Revenues $7,071,066 Total cost of revenues 7,958,967 ------------ Gross Profit (887,901) Operating Expenses Selling & Marketing 94,935 General & Administrative 288,972 Insiders Compensation 102,530 Professional Fees 0 Idle Facilities 55,391 Environmental 20,037 ------------ Total Operating Expenses 561,865 ------------ Income before interest, depreciation, tax (1,449,767) Interest Expense 1,419,803 Depreciation 713,058 Other (Income) Expenses (2,764,501) Restructuring Professional Fees 2,743,624 Other 27,575 Amortization of Deferred Financing Costs 387,997 Equity Loss (Earnings) in Subsidiary 5,661,655 Total Interest, Depreciation & Other Items 8,189,212 ------------ Net Income Before Taxes (9,638,979) Federal Income Tax 0 ------------ Net Income (Loss) ($9,638,979) ============ Scotia Development LLC, et al. Cash Receipts and Disbursements For the Month Ended June 30, 2008 Receipts Cash Sales $18,318 Collection of Accounts Receivable 7,562,051 Loans & Advances 0 Sale of Assets 0 Other 3,040 ------------ Total Receipts 7,583,409 Disbursements Net payroll 916,314 Payroll taxes paid 343,779 Sales, use & other taxes paid 21,416 Secured/rentals/leases 74,001 Utilities & telephone 56,213 Insurance 492,101 Cost of goods sold 5,973,784 Vehicle expenses 27,998 Travel & entertainment 42,167 Repairs, maintenance & supplies 535,150 Administrative & selling 167,233 Other 0 ------------ Total Disbursements from operations 8,650,156 Professional fees 143,749 U.S. Trustee fees 0 Other reorganization expenses 0 ------------ Total Disbursements 8,793,905 ------------ Net Cash Flow (1,210,497) ------------ Cash, at the beginning of the month 2,250,789 ------------ Cash, at the end of the month $1,040,292 ============ 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. On July 8, 2008, the Court confirmed the Modified First Amended Joint Plan of Reorganization With Technical Modifications for the Debtors proposed by Marathon Structured Finance Fund L.P., Mendocino Redwood Company, LLC, and the Official Committee of Unsecured Creditors. The Debtors emerged from bankruptcy protection on July 30, 2008. The Debtors' exclusive plan filing period expired on Feb. 29, 2008. (Scotia/Pacific Lumber Bankruptcy News, Issue No. 66; http://bankrupt.com/newsstand/or 215/945-7000). PACIFIC LUMBER: Scotia Pacific Files June 2008 Operating Report --------------------------------------------------------------- Scotia Pacific Company LLC Consolidated Balance Sheet As of June 30, 2008 ASSETS Current Assets Cash $4,393,790 Accounts receivable, net 11,613,928 Inventory: lower cost or market 1,022,018 Prepaid expenses 6,699,286 Prepaid Restructuring 514,671 Investments 26,763,175 Other 227,226 ------------ Total Current Assets $51,234,094 Property, Plant & Equipment $603,739,966 Less: Accumulated Depreciation (363,160,682) ------------ Net book value of property & plant 240,579,284 Other Assets Capitalized Expenses 9,063,284 ------------ TOTAL ASSETS $300,876,664 ============ LIABILITIES & OWNERS EQUITY Postpetition Liabilities Trade accounts payable $246,181 Tax payable Federal payroll taxes 0 State payroll taxes 0 Ad valorem taxes 35,000 Other taxes 254,261 ------------ Total taxes payable 289,261 Secured debt postpetition 0 Accrued interest payable 77,968,519 Accrued professional fees 11,951,120 Other accrued liabilities Unsecured Debt 2,836,423 Payroll 671,465 Other 366,472 ------------ Total Postpetition Liabilities $94,329,441 Prepetition Liabilities Notes payable - Secured 767,452,028 Priority debt 79,064 Federal income tax 0 FICA/ Withholding 0 Unsecured debt 3,357,954 Other 0 ------------ Total Prepetition Liabilities 770,889,046 ------------ Total Liabilities 865,218,487 Owner's Equity (Deficit) Preffered 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 (102,506,082) ------------ Total Owner's Equity (564,341,823) ------------ TOTAL LIABILITIES & OWNERS EQUITY $300,876,664 ============ Scotia Pacific Company LLC Statement of Income For the Period Ended June 30, 2008 Revenues $4,441,162 Total cost of revenues 1,250,297 Gross Profit 3,190,864 Operating Expenses Selling & Marketing 0 General & Administrative 250,148 Insiders Compensation 0 Professional Fees 0 Idle Facilities 0 Environmental 0 ------------ Total Operating Expenses 250,148 ------------ Income before interest, depreciation, tax 2,940,716 Interest Expense 4,794,702 Depreciation 664,253 Other (Income) Expenses (7,917) Amortization of Deferred Financing Costs 0 Restructuring Professional Fees 2,783,179 Other 368,155 Equity Loss (Earnings) in Subsidiary 0 Total Interest, Depreciation & Other Items 8,602,372 ------------ Net Income Before Taxes (5,661,655) Federal Income Tax 0 ------------ Net Income (Loss) ($5,661,655) ============ Scotia Pacific Company LLC Cash Receipts and Disbursements For the Month Ended June 30, 2008 Receipts Cash Sales $0 Collection of Accounts Receivable 0 Loans & Advances 0 Sale of Assets 0 Interest Income 1,382 Log Sales to Palco less Reimbursable 4,850,747 Other 489,935 ------------ Total Receipts 5,342,064 Disbursements Net payroll 300,873 Payroll taxes paid 97,476 Sales, use & other taxes paid 929 Secured/rentals/leases 20,306 Utilities & telephone 305 Insurance 227,400 Cost of goods sold 791,178 Vehicle expenses 1,693 Travel & entertainment 0 Repairs, maintenance & supplies 0 Administrative & selling 558,791 Decking, logging & hauling 953,814 Other 0 ------------ Total Disbursements from operations 2,952,765 Professional fees 2,873,862 U.S. Trustee fees 0 Interest 168,703 Other reorganization expenses 0 ------------ Total Disbursements 5,995,332 ------------ Net Cash Flow (653,268) ------------ Cash, at the beginning of the month 5,047,057 ------------ Cash, at the end of the month $4,393,789 ============ 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. On July 8, 2008, the Court confirmed the Modified First Amended Joint Plan of Reorganization With Technical Modifications for the Debtors proposed by Marathon Structured Finance Fund L.P., Mendocino Redwood Company, LLC, and the Official Committee of Unsecured Creditors. The Debtors emerged from bankruptcy protection on July 30, 2008. The Debtors' exclusive plan filing period expired on Feb. 29, 2008. (Scotia/Pacific Lumber Bankruptcy News, Issue No. 66; http://bankrupt.com/newsstand/or 215/945-7000). PERFORMANCE TRANS: Liquidating Trustee Submits April 2008 Report ---------------------------------------------------------------- Clear Thinking Group, LLC, the liquidating trustee appointed under PTS I's confirmed plan of reorganization, delivered to the Court an operating report for the PTS Liquidating Trust from April 1 to 30, 2008. The Liquidating Trustee reports the Trust made $30,753 in net disbursements during the reporting period. The Trust's operating account had an ending balance of $62,012 from a $92,765 balance at the start of the month. The Trust's money market account had an ending balance of $100,510 from a $100,266 balance at the start of the month. The Liquidating Trustee is represented in the cases by David Neier, Esq., at Arent Fox, LLP, in New York, New York. About Performance Transportation Performance Transportation Services Inc. is the second largest transporter of new automobiles, sport-utility vehicles and light trucks in North America, and operates under three key transportation business lines including: E. and L. Transport, Hadley Auto Transport and Leaseway Motorcar Transport. The company and 13 of its affiliates previously filed for Chapter 11 protection on Jan. 25, 2006 (Bankr. W.D.N.Y. Lead Case No. 06- 00107). The U.S. Bankruptcy Court for the Western District of New York confirmed the Debtors' plan on Dec. 21, 2006, and that plan became effective on Jan. 29, 2007. Garry M. Graber, Esq. of Hodgson, Russ LLP and Tobias S. Keller, Esq. of Jones Day represented the Debtors in their restructuring efforts. When the Debtor filed for protection from their creditors it reported more than $100,000,000 in total assets. It also disclosed owing more than $100,000,000 to at most 10,000 creditors, including $708,679 to Broadspire and $282,949 to General Motors of Canada Limited. The company and its debtor-affiliates filed their second chapter 11 bankruptcy on Nov. 19, 2007 (Bankr. W.D.N.Y. Case Nos 07-04746 through 07-04760). Tobias S. Keller, Esq., at Jones Day, represents the Debtors. Garry M. Graber, Esq., at Hodgson, Russ LLP, serve as the Debtors' local counsel. The Debtors' claims and balloting agent is Kutzman Carson Consultants LLC. On July 14, 2008, the Court converted the Debtor's second chapter 11 case to a chapter 7 liquidation proceeding. The Court named Mark S. Wallach as chapter 7 trustee. (Performance Bankruptcy News, Issue No. 52; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000). PERFORMANCE TRANS: Liquidating Trustee Submits May 2008 Report -------------------------------------------------------------- Clear Thinking Group, LLC, the liquidating trustee appointed under PTS I's confirmed plan of reorganization, presented to the Court the PTS Liquidating Trust's operating report for the period May 1 to 31, 2008. The Liquidating Trustee reports the Trust had a $10,065 monthly net of disbursements during the reporting period. The Trustee also reports that the Trust's operating account had an ending bank balance of $51,946 from a balance of $62,012 at the beginning of the reporting period. The Trust's money market account had an ending balance of $100,762 from a $100,510 balance at the start of the month. About Performance Transportation Performance Transportation Services Inc. is the second largest transporter of new automobiles, sport-utility vehicles and light trucks in North America, and operates under three key transportation business lines including: E. and L. Transport, Hadley Auto Transport and Leaseway Motorcar Transport. The company and 13 of its affiliates previously filed for Chapter 11 protection on Jan. 25, 2006 (Bankr. W.D.N.Y. Lead Case No. 06- 00107). The U.S. Bankruptcy Court for the Western District of New York confirmed the Debtors' plan on Dec. 21, 2006, and that plan became effective on Jan. 29, 2007. Garry M. Graber, Esq. of Hodgson, Russ LLP and Tobias S. Keller, Esq. of Jones Day represented the Debtors in their restructuring efforts. When the Debtor filed for protection from their creditors it reported more than $100,000,000 in total assets. It also disclosed owing more than $100,000,000 to at most 10,000 creditors, including $708,679 to Broadspire and $282,949 to General Motors of Canada Limited. The company and its debtor-affiliates filed their second chapter 11 bankruptcy on Nov. 19, 2007 (Bankr. W.D.N.Y. Case Nos 07-04746 through 07-04760). Tobias S. Keller, Esq., at Jones Day, represents the Debtors. Garry M. Graber, Esq., at Hodgson, Russ LLP, serve as the Debtors' local counsel. The Debtors' claims and balloting agent is Kutzman Carson Consultants LLC. On July 14, 2008, the Court converted the Debtor's second chapter 11 case to a chapter 7 liquidation proceeding. The Court named Mark S. Wallach as chapter 7 trustee. (Performance Bankruptcy News, Issue No. 52; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000). PERFORMANCE TRANS: Liquidating Trustee Submits June 2008 Report --------------------------------------------------------------- Clear Thinking Group, LLC, the trustee appointed to oversee the liquidation of PTS I's estate pursuant to their confirmed plan of reorganization, filed with the Court an operating report for the PTS Liquidating Trust for the month ended June 1 to 30, 2008. The Liquidating Trustee reports the Trust incurred $26,092 in net disbursements during the reporting period. The Trust's operating account had an ending bank balance of $51,946 from a balance of the same amount at the beginning of the reporting period. The Trust's money market account had an ending balance of $70,945 from a $100,762 balance at the start of the month. About Performance Transportation Performance Transportation Services Inc. is the second largest transporter of new automobiles, sport-utility vehicles and light trucks in North America, and operates under three key transportation business lines including: E. and L. Transport, Hadley Auto Transport and Leaseway Motorcar Transport. The company and 13 of its affiliates previously filed for Chapter 11 protection on Jan. 25, 2006 (Bankr. W.D.N.Y. Lead Case No. 06- 00107). The U.S. Bankruptcy Court for the Western District of New York confirmed the Debtors' plan on Dec. 21, 2006, and that plan became effective on Jan. 29, 2007. Garry M. Graber, Esq. of Hodgson, Russ LLP and Tobias S. Keller, Esq. of Jones Day represented the Debtors in their restructuring efforts. When the Debtor filed for protection from their creditors it reported more than $100,000,000 in total assets. It also disclosed owing more than $100,000,000 to at most 10,000 creditors, including $708,679 to Broadspire and $282,949 to General Motors of Canada Limited. The company and its debtor-affiliates filed their second chapter 11 bankruptcy on Nov. 19, 2007 (Bankr. W.D.N.Y. Case Nos 07-04746 through 07-04760). Tobias S. Keller, Esq., at Jones Day, represents the Debtors. Garry M. Graber, Esq., at Hodgson, Russ LLP, serve as the Debtors' local counsel. The Debtors' claims and balloting agent is Kutzman Carson Consultants LLC. On July 14, 2008, the Court converted the Debtor's second chapter 11 case to a chapter 7 liquidation proceeding. The Court named Mark S. Wallach as chapter 7 trustee. (Performance Bankruptcy News, Issue No. 52; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000). PRC LLC: Posts $8,655,000 Net Loss in Month Ended June 30, 2008 --------------------------------------------------------------- PRC, LLC, et al. Balance Sheet As of June 30, 2008 ASSETS Current Assets: Cash and cash equivalents $31,078,000 Restricted cash 2,035,000 Short-term investments 0 Accounts receivable -- customers 52,654,000 Accounts receivable -- intercompany 0 Total inventories 0 Prepaid & other current assets 3,488,000 ------------ Total current assets 89,255,000 ------------ Total investments & other assets 11,134,000 Goodwill & other intangible assets 183,086,000 Property, plant and equipment, net 34,702,000 ------------ Total Assets $318,177,000 ============ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Not Subject to Compromise: Senior Credit Facility $15,000,000 DIP Credit Agreement 0 Long-term debt classified as current 0 Accrued interest payable 0 Accounts payable -- trade 13,688,000 Accounts payable -- intercompany 0 Other payables and accrued liabilities 11,863,000 Deferred income taxes 0 Pension and other liabilities 0 ------------ Total liabilities not subject to compromise 40,551,000 ------------ Liabilities Subject to Compromise: Senior Notes 180,850,000 Revolver 5,500,000 Deferred financing fees 0 Accrued interest payable on Senior Notes 1,982,000 Accounts payable 29,132,000 Other payables and accrued liabilities 7,451,000 Pension and other liabilities 0 ------------ Total liabilities subject to compromise 224,915,000 ------------ Total Liabilities 265,466,000 ------------ Stockholders' Equity Equity of subsidiaries 0 Common stock/initial capitalization 127,169,000 Capital Surplus/Treasury Stock/APIC 11,355,000 Retained earnings(deficit) (88,616,000) Minimum pension liability adjustment 0 Other adjustments (580,000) Unearned compensation 3,383,000 ------------ Total Stockholders' Equity 52,711,000 ------------ Total Liabilities & Stockholders' Equity $318,177,000 ============ PRC, LLC, et al. Statement of Operations For the Period From June 1 to 30, 2008 Total sales $26,538,000 ------------- Cost of sales -- Direct 17,926,000 Cost of sales -- Indirect 6,261,000 ------------- Gross profit 2,351,000 ------------- Selling and administrative expenses Selling and advertising expense 53,000 Warehousing and shipping 62,000 Division administrative expense 0 MIS expense 141,000 Corporate administrative expense 1,765,000 ------------- Total Selling and administrative expense 2,021,000 ------------- Restructuring and impairment charge 0 Goodwill impairment charge 0 Depreciation and amortization expense 3,014,000 ------------- Loss from Operations (2,684,000) ------------- Interest expense Interest expense -- outside 1,061,000 Capitalized interest expense 0 Interest expense -- intercompany 0 Interest income 0 Interest income -- intercompany 0 ------------- Net interest expense 1,061,000 ------------- Other expense: Miscellaneous 0 Royalties -- intercompany 0 Transaction gain/loss 2,842,000 ------------- Total other expense 2,842,000 ------------- Other income: Royalties -- intercompany 0 Dividends 0 Sale of assets 0 Miscellaneous 0 ------------- Total other income 0 ------------- Net other expense 2,842,000 ------------- Loss before reorganization expenses and income taxes(benefits) and extraordinary items (6,587,000) ------------- Reorganization expenses 1,898,000 Income taxes(benefits) 170,000 ------------- Loss before extraordinary item (8,655,000) Extraordinary items 0 ------------- Net loss ($8,655,000) ============= PRC, LLC, et al. Statement of Cash Flows For the Period From June 1 to 30, 2008 Cash flows from Operations: Net income(loss) ($8,655,000) Non-cash items Depreciation and amortization expense 3,332,000 Provision for bad debts 591,000 Loss on sale of fixed assets 2,841,000 Changes in Assets and Liabilities Decrease/(increase) -- accounts receivable (customers) 8,664,000 Decrease/(increase) -- receivable (intercompany) 0 Decrease/(increase) -- inventories 0 Decrease/(increase) -- other current assets (168,000) Decrease/(increase) -- other noncurrent assets (1,579,000) Increase/(decrease) -- accounts payable (trade) 2,843,000 Increase/(decrease) -- accounts payable (intercompany) 0 Increase/(decrease) -- accrued liabilities (1,625,000) Increase/(decrease) -- customer deposit (4,000) Increase/(decrease) -- accrued interest payable 608,000 Increase/(decrease) -- pension and other liabilities 0 Increase/(decrease) -- deferred federal income tax 0 ------------- Total Cash Flows from Operations 6,848,000 ------------- Cash Flows from Investing: Decrease/(increase) -- short term investments 0 Capital expenditures (196,000) Transfers 0 Net proceeds from sale of assets 1,401,000 ------------- Total Cash Flows from Investing 1,205,000 ------------- Cash Flows from Financing: Payment on LT debt 15,000,000 Increase/(decrease) -- DIP credit agreement (5,000,000) ------------- Total Cash Flows from Financing 10,000,000 ------------- Beginning Cash Balance 13,025,000 Change in Cash 18,053,000 ------------- Ending Cash Balance $31,078,000 ============= About PRC LLC Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC -- http://www.prcnet.com/-- is a leading provider of customer management solutions. PRC markets its services to brand-focused, Fortune 500 U.S. corporations and delivers these services through a global network of call centers in the U.S., Philippines, India, and the Dominican Republic. PRC is the sole member of each of PRC B2B, LLC, and Precision Response of Pennsylvania, LLC, and the sole shareholder of Access Direct Telemarketing, Inc., each of which is a debtor and debtor- in-possession in PRC's joint Chapter 11 cases. Panther/DCP Intermediate Holdings, LLC, is the sole member of PRC. PRC, together with its operating subsidiaries PRC B2B, Access Direct, and PRC PA, is a leading provider of complex, consultative, outsourced services in the Customer Care and Sales & Marketing segments of the business process outsourcing industry. Since 1982, the company has acquired and grown customer relationships for some of the world's largest and most brand-focused corporations in the financial services, media, telecommunications, transportation, and retail industries. The company and four of its affiliates filed for Chapter 11 protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08- 10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. The Debtors chose Stephen Dube, at CXO LLC, as their restructuring and turnaround advisor. Additionally, Evercore Group LLC provides investment and financial counsel to the Debtors. The Debtors' consolidated financial condition as of Dec. 31, 2007 showed total assets of $354,000,000 and total debts of $261,000,000. The Debtors submitted to the Court a Chapter 11 Plan of Reorganization on Feb. 12, 2008. The Court confirmed that Plan mid-June 2008. (PRC LLC Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SHARPER IMAGE: Files June 30, 2008 Operating Report --------------------------------------------------- Sharper Image Corp. Balance Sheet As of June 30, 2008 ASSETS Current assets: Unrestricted Cash and Equivalents ($299,794) Restricted Cash and Equivalents - Trade Accounts Receivable, net 1,199,753 Other Accounts Receivable 3,318,616 Notes Receivable - Inventories 7,679,710 Prepaid Expenses 7,203,601 Professional Retainers - Deferred Income Taxes/Prepaid Income Taxes 17,304,554 ------------ Total current assets 36,406,439 Property and Equipment: Real Property and Improvements 2,926,573 Machinery and Equipment - Furniture, Fixtures and Office Equipment - Leasehold Improvements - Vehicles - Work In Progress 451,799 Less: Accumulated Depreciation (988,544) ------------ Total Property and Equipment 2,389,828 Other assets: Loans to Insiders - Other Assets 14,165,907 ------------ Total Assets $52,962,174 ============ LIABILITIES AND OWNER'S EQUITY Liabilities not subject to Compromise (Post) Accounts Payable ($2,737,678) Taxes Payable (1,490,861) Wages Payable (2,733,866) Notes Payable - Rent/Leases - Building/Equipment (453,392) Secured Debt - Line of credit - Other Reserves - Liquidation (GOB Sales) Clearing Account (15,949,943) Amounts Due to Insiders - Other Postpetition Liabilities - ------------ Total Postpetition Liabilities (23,365,741) Liabilities not subject to Compromise (Pre) Secured Debt - Line of credit - Secured Debt - Other (6,767,606) Priority Debt - Unsecured Debt (Accounts Payable) (45,286,327) Expense Accruals and Other Liabilities (7,369,776) Short Term Liabilities (3,554,215) Deferred (GAAP) rent/landlord allowances etc (11,760,552) Deferred Tax (Liability)/Asset 96,749,380 Deferred Revenue (Gift cards and Royalties) (35,696,181) Sales Returns/Chargebacks Reserves (2,251,437) ------------ Total Prepetition Liabilities (15,936,715) ------------ Total Liabilities (39,302,455) Owner's Equity Capital Stock (152,132) Additional Paid-In Capital (116,716,579) Deferred Stock Compensation and Stock Repurchase 180,069 Retained Earnings - Prepetition 63,247,322 Retained Earnings - Postpetition 39,781,601 ------------ Net Owner's Equity (13,659,719) ------------ Total Liabilities and Owner's Equity ($52,962,174) ============ Sharper Image Corp. Statement of Operations For Month Ended June 30, 2008 Revenues: Gross Revenues $219,704 Less: Returns and Allowances (41,050) ------------ Net Revenue 260,754 Cost of Goods Sold: Beginning Inventory - Add: Purchases - Add: Cost of Labor - Add: Other Costs (attach schedule) - Less: Ending Inventory - Cost of Goods Sold 108,423 ------------ Gross Profit 152,331 Operating Expenses: Advertising 138,294 Auto and Truck Expense - Bad Debts 42,165 Contributions - Employee Benefit Programs (199,744) Insider Compensations - Insurance 239,956 Management Fees/Bonuses 11,480 Office Expense - Pension & Profit-Sharing Plans - Repairs and Maintenance (17,837) Rent and Lease Expense (57,191) Salaries/Commissions/Fees 1,883,152 Supplies (100,184) Taxes - Payroll 96,764 Taxes - Real Estate - Taxes - Other 110,542 Travel and Entertainment 33,226 Utilities (75,336) Other 899,734 ------------ Total Operating Expense Before Depr. 3,005,021 Depreciation/Depletion/Amortization (38,747) ------------ Net Profit (Loss) Before Other Income & Expenses (2,813,943) Other Income and Expenses: Licensing Income 15 Interest Expense (3,673) Other Expense - ------------ Net Profit (Loss) Before Reorganization Items (2,817,601) Reorganization Items: Professional Fees 1,302,179 US Trustee Quarterly Fees - Interest Earned on Accm Case - Gain (Loss) from sale of assets 34,490,593 Other Reorganization Expense (10,799,695) ------------ Total Reorganization Expenses 24,993,078 ------------ Net Profit (Loss) Before Income Taxes (Benefit) (27,810,679) Income Taxes (Benefit) (10,679,301) ------------ Net Profit (Loss) ($17,131,378) ============ Sharper Image Corp. Statement of Cash Flows For Month Ended June 30, 2008 Opening Balance $15,870,610 Receipts Cash Sales (from stores) 2,727,857 Credit Card Settlements 11,171,918 Other Settlements (401,557) Accounts Receivable 688,215 Sale of Assets 30,011,741 Interest/Divided Income 3,635 Mail Order/License Deposits, Other Deposits 406,749 ------------ Total Receipts 44,608,557 Transfers Line of Credit Draw/Pay Down (35,450,375) Transfers from stores to deposit a/c - sweep - Transfers from concentration to refunds - Transfers from concentration to payroll - Other Inter-account transfers - Transfers from Concentration to Disbursement - ------------ Total Transfers (35,450,375) ------------ Total Receipts & Transfers 9,158,183 Disbursements Liquidator Reimbursements 10,627,102 Net Payroll 2,211,108 Payroll Taxes 896,711 401k 58,272 Employee Benefits 342,926 Sales, Use & Other Taxes 976,689 Inventory Purchases 68,950 Secured/Rental/Leases 5,040,166 Insurance 124,872 Administrative 1,097,474 Selling - Bank/Credit Card Fees/Sales audit adjs 11,922 Refund checks issued (net of stop payments) 52,784 Other 94,802 Customs/Duties/Freight 987,751 Interest and LC fees - Professional Fees 2,737,057 US Trustee Quarterly Fees - Court Costs - ------------ Total Disbursements 25,328,587 ------------ Net Cash Flow ($16,170,404) ============ About Sharper Image Based in San Francisco, California, Sharper Image Corp. -- http://www.sharperimage.com/-- is a multi-channel specialty retailer. It operates in three principal selling channels: the Sharper Image specialty stores throughout the U.S., the Sharper Image catalog and the Internet. The company has operations in Australia, Brazil and Mexico. In addition, through its Brand Licensing Division, it is also licensing the Sharper Image brand to select third parties to allow them to sell Sharper Image branded products in other channels of distribution. The company filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D.D., Case No. 08-10322). Steven K. Kortanek, Esq. at Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the Debtor in its restructuring efforts. An Official Committee of UnsecuredCreditors has been appointed in the case. Whiteford Taylor Preston LLC is the Committee's Delaware counsel When the Debtor filed for bankruptcy, it listed total assets of US$251,500,000 and total debts of US$199,000,000. The Court extended the exclusive period during which the Debtor may file a Plan through and including Sept. 16, 2008. Sharper Image sought and obtained the Court's approval to change its name to "TSIC, Inc." in relation to an an Asset Purchase Agreement by the Debtor with Gordon Brothers Retail Partners, LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco Consumer Capital, LLC. (Sharper Image Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) TARPON INDUSTRIES: Files June 2008 Monthly Operating Report ----------------------------------------------------------- Tarpon Industries Inc. reported zero revenue and incurred a net loss of 553,247 for the period June 1, 2008, through June 30, 2008. As of June 30, 2008, the Debtor had total assets of $3,430,920, total liabilities of $18,693,975, and stockholders' deficit of $15,263,055. A full-text copy of the Debtor's June 2008 monthly operating report is available for free at: http://ResearchArchives.com/t/s?3088 About Tarpon Industries Based in Marysville, Michigan, Tarpon Industries Inc. -- http://www.tarponind.com/-- manufactures and sells engineered steel storage rack systems and a variety of steel tubing products in the United States and Canada through its subsidiary Eugene Welding Co. The company's products include structural and roll- formed steel selective racks, push-back racks, cantilevered racks, archival storage systems and order picking systems. The company markets its steel tubing products throughout the Unites States to OEM automotive, boating, industrial equipment, construction, agricultural, steel service centers, leisure and recreational vehicle markets. The company and its affiliate filed for Chapter 11 protection on April 29, 2008 (Bankr. E.D. Mich. Case Nos. 08-50367 and 08- 50381). Jeffrey S. Grasl, Esq., and Stephen M. Gross, Esq., at McDonald Hopkins LLC, represent the Debtors in their restructuring efforts. The U.S. Trustee for Region 9 appointed creditors to serve on an Official Committee of Unsecured Creditors. Jean R. Roberston, Esq., at Calfee, Halter & Griswold, LLP, represents the Committee. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $10 million to $50 million. TARPON INDUSTRIES: Eugene Welding Files June 2008 Report -------------------------------------------------------- Eugene Welding Co., a debtor-affiliate of Tarpon Industries Inc., filed its June 2008 monthly operating report: Beginning cash balance $569,215 Total receipts for the period 2,511,359 Total disbursements for the period 2,944,502 Ending cash balance 136,071 A full-text copy of the Debtor's June 2008 monthly operating report is available for free at: http://ResearchArchives.com/t/s?3089 About Tarpon Industries Based in Marysville, Michigan, Tarpon Industries Inc. -- http://www.tarponind.com/-- manufactures and sells engineered steel storage rack systems and a variety of steel tubing products in the United States and Canada through its subsidiary Eugene Welding Co. The company's products include structural and roll- formed steel selective racks, push-back racks, cantilevered racks, archival storage systems and order picking systems. The company markets its steel tubing products throughout the Unites States to OEM automotive, boating, industrial equipment, construction, agricultural, steel service centers, leisure and recreational vehicle markets. The company and its affiliate filed for Chapter 11 protection on April 29, 2008 (Bankr. E.D. Mich. Case Nos. 08-50367 and 08- 50381). Jeffrey S. Grasl, Esq., and Stephen M. Gross, Esq., at McDonald Hopkins LLC, represent the Debtors in their restructuring efforts. The U.S. Trustee for Region 9 appointed creditors to serve on an Official Committee of Unsecured Creditors. Jean R. Roberston, Esq., at Calfee, Halter & Griswold, LLP, represents the Committee. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $10 million to $50 million. TRICOM SA: Reports $20,647 Net Earnings in March 2008 ----------------------------------------------------- Tricom S.A., et al. Consolidated Balance Sheet (Unaudited) As of March 31, 2008 ASSETS: Current Assets: Cash and Cash Equivalents $20,890,697 Accounts Receivable 23,480,254 Inventories, Net 3,028,819 Prepaid Expenses 8,376,365 Deferred Income Taxes 8,285 -------------- Total current assets 55,784,420 Property and equipment, net 249,349,012 Pledged Securities 140,130 Intangible Assets 2,664,641 Other assets 4,374,622 -------------- TOTAL ASSETS $312,312,825 ============== Liabilities and Stockholder's Equity Liabilities Subject to Compromise (Prepetition) Short term obligations $121,070 Accounts payable 9,680,048 Long Term Debt 443,846,001 Other liabilities 2,033,713 Interest Payable 278,773,847 Accrued expenses 12,918,506 -------------- 747,373,185 Liabilities not Subject to Compromise (Postpetition) Accounts payable 7,473,013 Interest Payable 383,721 Accrued expenses 5,716,703 Deferred Revenues 2,518,440 Other liabilities 65,868 -------------- 16,157,745 Total current liabilities 763,530,930 Deferred income tax 8,534 -------------- TOTAL LIABILITIES $763,539,464 ============== Shareholder's equity: Common stock-Class A 24,951,270 Common stock-Class B 12,595,095 Additional Paid in capital 275,496,988 Legal reserve 2,091,547 Retained earnings (Losses) (13,606,058) Retained earning (Loss) Prior years (750,731,719) Currency translation (2,023,762) -------------- SHAREHOLDER'S EQUITY, NET ($451,226,639) TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $312,312,825 ============== Tricom S.A., et al. Consolidated Statements of Operations (Unaudited) For the Month Ended March 31, 2008 Operating revenues $18,312,898 Operating costs & Administrative expenses (18,031,606) Restructuring Related Items (55,000) -------------- Operating income 226,292 Interest expenses (383,721) Interest income 30,684 Foreign currency exchange 72,694 Other 74,698 -------------- Total other income (expenses) (205,645) -------------- Net earnings( loss) Pre-Tax 20,647 Net earnings (Loss) $20,647 ============== Tricom S.A., et al. Statement of Cash Flows (Unaudited) For the Month Ended March 31, 2008 Cash Flows from operating activities: Cash received from customers $19,925,524 Cash Paid to suppliers and employees (14,075,398) Restructuring Related Items (55,000) Interest received on deposits 30,684 Interest Expense (383,721) Other operating activities 147,392 -------------- Net cash provided by (used in) operating activities 5,589,481 Cash flows from investing activities: Acquisition of property and equipment (1,147,110) Pledged Securities (195) -------------- Net cash used in investing activities (1,147,305) Cash Flows from financing activities: Borrowed funds from banks (2,662) Current portion of long term debt 60,977 Current portion of capital leases (2,853) Long Term debt Obtained (80,211) -------------- Net cash provided (used) by financing activities (24,749) -------------- Increase (Decrease) of cash and cash equivalents 4,417,427 Cash and cash equivalents at beginning of the period 16,473,270 -------------- Cash and cash equivalents at end of the period $20,890,697 ============== Reconciliation between net earnings and net cash provided by (used in) operating activities Net earnings (Loss) 20,647 Adjustments to reconcile net earnings (Loss) and net cash provided by (used in) operating activities Depreciation 3,687,889 Allowance for doubtful accounts 309,402 Amortizations issue cost 18,077 INCREASE IN: Accounts receivable-Employees (77,488) Accounts receivable-Customers 715,855 Earned Interest 197,033 Accounts payable-Carriers 161,202 Accounts payable-Suppliers 273,144 Accrued expenses (241,871) Accounts payable-Other (286,912) Other liabilities 139,453 DECREASE IN: Accounts receivable-Carrier 128,479 Accounts receivable-Other 768,292 Inventories (391,195) Prepaid expenses 56,733 Other Assets 110,741 -------------- TOTAL ADJUSTMENTS 5,568,834 Net cash used in operating activities 5,589,481 ============== The Debtors disclosed a total of $18,092,354 of disbursements for the month ended March 31, 2008: Tricom S.A. $15,848,676 Tricom USA Inc. 564,323 TCN Dominicana S.A. 1,679,355 About Tricom S.A. Tricom, S.A., was incorporated in the Dominican Republic on January 25, 1988, as a Sociedad Anonima. Tricom is one of the pre-eminent full service communications services providers in the Dominican Republic. Headquartered in Santo Domingo, Tricom offers local, long distance, and mobile telephone services, cable television and broadband data transmission and Internet services, which are provided to more than 729,000 customers. Tricom's wireless network covers about 90% of the Dominican Republic's population. Tricom's local service network is 100% digital. The Company also owns interests in undersea fiber- optic cable networks that connect and transmit telecommunications signals between Central America, the Caribbean, the United States and Europe. Tricom USA, Inc., a wholly owned subsidiary of Tricom, was incorporated in Delaware in 1992, and at that time was known as Domtel Communications. A name change was effected in 1997 and Domtel Communications formally became Tricom USA, Inc. Tricom USA originates, transports and terminates international long-distance traffic using switching stations and other telecommunications equipment located in New York and Florida. Tricom S.A. and its U.S. affiliates filed for Chapter 11 protection on Feb. 29, 2008 (Bankr. S.D. N.Y. Case No. 08- 10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP, in New York City, represent the Debtors. When the Debtors' filed for protection from their creditors, they listed total assets of US$327,600,000 and total debts of US$764,600,000. (Tricom Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000) TRICOM SA: Reports $795,816 Net Loss in April 2008 -------------------------------------------------- Tricom S.A., et al. Consolidated Balance Sheet (Unaudited) As of April 30, 2008 ASSETS Current Assets: Cash and Cash Equivalents $23,085,536 Accounts Receivable 23,621,654 Inventories, Net 2,928,850 Prepaid Expenses 8,836,388 Deferred Income Taxes 8,285 -------------- Total current assets 58,480,713 Property and equipment, net 248,840,148 Pledged Securities 140,615 Intangible Assets 2,664,641 Other assets 4,544,830 -------------- TOTAL ASSETS $314,670,947 ============== Liabilities and Stockholder's Equity Liabilities Subject to Compromise (Prepetition) Short term obligations $121,070 Accounts payable 444,706 Long Term Debt 443,812,163 Other liabilities 2,001,370 Interest Payable 278,953,263 Accrued expenses 12,798,266 -------------- 738,130,838 Liabilities not Subject to Compromise (Postpetition) Accounts payable 19,150,035 Interest Payable 361,448 Accrued expenses 6,471,262 Other liabilities 75,777 Deferred Revenues 2,514,336 -------------- 28,572,858 Total current liabilities 766,703,696 Deferred income tax 8,533 -------------- TOTAL LIABILITIES 766,712,229 ============== Shareholder's equity: Common stock-Class A 24,951,270 Common stock-Class B 12,595,095 Additional Paid in capital 275,496,988 Legal reserve 2,043,242 Retained earnings (Losses) (14,401,874) Retained earning (Loss) Prior years (750,702,241) Currency translation (2,023,762) -------------- SHAREHOLDER'S EQUITY, NET ($452,041,282) TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $314,670,947 ============== Tricom S.A., et al. Consolidated Statements of Operations (Unaudited) For the Month Ended April 30, 2008 Operating revenues $17,801,549 Operating costs & Administrative expenses (17,541,500) Restructuring Related Items (878,000) -------------- Operating income (617,951) Interest expenses (361,448) Interest income 35,185 Foreign currency exchange 122,419 Other 25,979 -------------- Total other income (expenses) (177,865) -------------- Net earnings (loss) Pre-Tax (795,816) Net earnings (Loss) ($795,816) ============== Tricom S.A., et al. Statement of Cash Flows (Unaudited) For the Month Ended April 30, 2008 Cash Flows from operating activities: Cash received from customers $17,374,692 Cash Paid to suppliers and employees (10,996,363) Restructuring Related Items (878,000) Interest received on deposits 35,185 Interest Expense (361,448) Other operating activities 148,398 -------------- Net cash provided by (used in) operating activities 5,322,464 Cash flows from investing activities: Acquisition of property and equipment (3,093,301) Pledged Securities (485) -------------- Net cash used in investing activities (3,093,786) Cash Flows from financing activities: Borrowed funds from banks (3,641) Current portion of long term debt 54,516 Current portion of capital leases (3,900) Long Term debt Obtained (80,813) -------------- Net cash provided (used) by financing activities (33,838) -------------- Increase (Decrease) of cash and cash equivalents 2,194,840 Cash and cash equivalents at beginning of the period 20,890,697 Cash and cash equivalents at end of the period $23,085,537 ============== Reconciliation between net earnings and net cash provided by (used in) operating activities Net earnings (Loss) (795,816) Adjustments to reconcile net earnings (Loss) and net cash provided by (used in) operating activities Depreciation 3,684,117 Allowance for doubtful accounts 266,595 Amortizations issue cost 18,077 INCREASE IN: Accounts receivable-Employees 18,862 Accounts receivable-Customers (538,431) Prepaid expenses (9,490) Earned Interest 157,143 Accounts payable-Carriers (89,545) Accounts payable-Suppliers 2,556,471 Accrued expenses 615,492 Accounts payable-Other (25,246) Other liabilities (26,538) DECREASE IN: Accounts receivable-Carrier 9,627 Accounts receivable-Other 101,947 Inventories 18,017 Prepaid expenses (450,533) Other Assets (188,285) -------------- TOTAL ADJUSTMENTS 6,137,260 Net cash used in operating activities $5,322,464 ============== For the month ended April 30, 2008, the Debtors disclose a total of $19,275,524 of disbursements: Tricom S.A. $17,330,619 Tricom USA Inc. 555,580 TCN Dominicana S.A. 1,389,325 About Tricom S.A. Tricom, S.A., was incorporated in the Dominican Republic on January 25, 1988, as a Sociedad Anonima. Tricom is one of the pre-eminent full service communications services providers in the Dominican Republic. Headquartered in Santo Domingo, Tricom offers local, long distance, and mobile telephone services, cable television and broadband data transmission and Internet services, which are provided to more than 729,000 customers. Tricom's wireless network covers about 90% of the Dominican Republic's population. Tricom's local service network is 100% digital. The Company also owns interests in undersea fiber- optic cable networks that connect and transmit telecommunications signals between Central America, the Caribbean, the United States and Europe. Tricom USA, Inc., a wholly owned subsidiary of Tricom, was incorporated in Delaware in 1992, and at that time was known as Domtel Communications. A name change was effected in 1997 and Domtel Communications formally became Tricom USA, Inc. Tricom USA originates, transports and terminates international long-distance traffic using switching stations and other telecommunications equipment located in New York and Florida. Tricom S.A. and its U.S. affiliates filed for Chapter 11 protection on Feb. 29, 2008 (Bankr. S.D. N.Y. Case No. 08- 10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP, in New York City, represent the Debtors. When the Debtors' filed for protection from their creditors, they listed total assets of US$327,600,000 and total debts of US$764,600,000. (Tricom Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000) TRICOM SA: Reports $1,515,337 Net Loss in May 2008 -------------------------------------------------- Tricom S.A., et al. Consolidated Balance Sheet (Unaudited) As of May 31, 2008 ASSETS Current Assets: Cash and Cash Equivalents $25,388,214 Accounts Receivable 23,397,955 Inventories, Net 2,845,533 Prepaid Expenses 8,488,023 Deferred Income Taxes 8,285 -------------- Total current assets 60,128,010 Property and equipment, net 247,998,173 Pledged Securities 140,615 Intangible Assets 2,664,641 Other assets 4,626,306 -------------- TOTAL ASSETS $315,557,745 ============== Liabilities and Stockholder's Equity Liabilities Subject to Compromise (Prepetition) Short term obligations $121,070 Accounts payable - Long Term Debt 443,812,163 Other liabilities 1,965,498 Interest Payable 279,195,813 Accrued expenses 12,090,896 -------------- 737,185,440 Liabilities not Subject to Compromise (Postpetition) Short term obligations 106,423 Accounts payable 20,313,542 Interest Payable 381,448 Accrued expenses 8,262,983 Other liabilities 110,749 Deferred Revenues 2,415,162 -------------- 31,590,306 Total current liabilities 768,775,746 Deferred income tax 8,533 -------------- TOTAL LIABILITIES $768,784,279 Shareholder's equity: Common stock-Class A 24,951,270 Common stock-Class B 12,595,095 Additional Paid in capital 275,496,988 Legal reserve 2,043,242 Retained earnings (Losses) (15,916,913) Retained earning (Loss) Prior years (750,372,454) Currency translation (2,023,762) -------------- SHAREHOLDER'S EQUITY, NET ($453,226,534) TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $315,557,745 ============== Tricom S.A., et al. Consolidated Statements of Operations (Unaudited) For the Month Ended May 31, 2008 Operating revenues $18,549,185 Operating costs & Administrative expenses (18,772,272) Restructuring Related Items (1,095,000) -------------- Operating income (1,318,087) Interest expenses (381,448) Interest income 36,378 Foreign currency exchange 80,144 Other 67,676 -------------- Total other income (expenses) (197,250) -------------- Net earnings (loss) Pre-Tax (1,515,337) Net earnings (Loss) ($1,515,337) ============== Tricom S.A., et al. Statement of Cash Flows (Unaudited) For the Month Ended May 31, 2008 Cash Flows from operating activities: Cash received from customers $17,454,247 Cash Paid to suppliers and employees (11,099,440) Restructuring Related Items (1,095,000) Cash received from related parties (2,875) Interest received on deposits 36,378 Interest paid (381,448) Other operating activities 147,820 -------------- Net cash provided by (used in) operating activities 5,059,682 Cash flows from investing activities: Acquisition of property and equipment (2,869,564) Pledged Securities (101) -------------- Net cash used in investing activities (2,869,665) Cash Flows from financing activities: Overdraft Obtained 106,423 Current portion of long term debt (319,661) Current portion of capital leases (1) Long Term debt Obtained 319,661 -------------- Net cash provided (used) by financing activities 106,422 Adjustments 6,238 -------------- Increase (Decrease) of cash and cash equivalents 2,302,677 Cash and cash equivalents at beginning of the period 23,085,537 Cash and cash equivalents at end of the period $25,388,214 ============== Reconciliation between net earnings and net cash provided by (used in) operating activities Net earnings (Loss) (1,515,337) Adjustments to reconcile net earnings (Loss) and net cash provided by (used in) operating activities Depreciation 3,676,483 Allowance for doubtful accounts 387,937 Amortizations issue cost 18,077 INCREASE IN: Accounts receivable-Employees. (57,323) Accounts receivable-Related parties. (2,875) Accounts receivable-Customers (606,691) Prepaid expenses 9,490 Earned Interest 262,550 Accounts payable-Carriers 796,867 Accounts payable-Suppliers 196,037 Accrued expenses 2,103,851 Accounts payable-Other (8,263) Other liabilities (100,075) DECREASE IN: Accounts receivable-Carrier 261,998 Accounts receivable-Other (750,245) Inventories 133,410 Prepaid expenses 353,344 Other Assets (99,553) -------------- TOTAL ADJUSTMENTS 6,556,039 Net cash used in operating activities $5,059,682 ============== For the month ended May 31, 2008, the Debtors disclose a total of $20,141,176 of disbursements: Tricom S.A. $16,705,183 Tricom USA Inc. 1,181,226 TCN Dominicana S.A. 2,254,767 About Tricom S.A. Tricom, S.A., was incorporated in the Dominican Republic on January 25, 1988, as a Sociedad Anonima. Tricom is one of the pre-eminent full service communications services providers in the Dominican Republic. Headquartered in Santo Domingo, Tricom offers local, long distance, and mobile telephone services, cable television and broadband data transmission and Internet services, which are provided to more than 729,000 customers. Tricom's wireless network covers about 90% of the Dominican Republic's population. Tricom's local service network is 100% digital. The Company also owns interests in undersea fiber- optic cable networks that connect and transmit telecommunications signals between Central America, the Caribbean, the United States and Europe. Tricom USA, Inc., a wholly owned subsidiary of Tricom, was incorporated in Delaware in 1992, and at that time was known as Domtel Communications. A name change was effected in 1997 and Domtel Communications formally became Tricom USA, Inc. Tricom USA originates, transports and terminates international long-distance traffic using switching stations and other telecommunications equipment located in New York and Florida. Tricom S.A. and its U.S. affiliates filed for Chapter 11 protection on Feb. 29, 2008 (Bankr. S.D. N.Y. Case No. 08- 10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP, in New York City, represent the Debtors. When the Debtors' filed for protection from their creditors, they listed total assets of US$327,600,000 and total debts of US$764,600,000. (Tricom Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000) TRICOM SA: Reports $2,337,457 Net Loss in June 2008 --------------------------------------------------- Tricom S.A., et al. Consolidated Balance Sheet (Unaudited) As of June 30, 2008 ASSETS Current Assets: Cash and Cash Equivalents $24,516,546 Accounts Receivable 24,175,577 Inventories, Net 2,614,375 Prepaid Expenses 9,754,659 Deferred Income Taxes 8,285 -------------- Total current assets 61,069,442 Property and equipment, net 247,986,131 Pledged Securities 141,092 Intangible Assets 2,664,641 Other assets 4,464,160 -------------- $316,325,466 ============== Liabilities and Stockholder's Equity Liabilities Subject to Compromise (Prepetition) Short term obligations $121,070 Accounts payable - Long Term Debt 443,763,327 Other liabilities 1,836,806 Interest Payable 279,360,173 Accrued expenses 8,858,885 -------------- 733,940,261 Liabilities not Subject to Compromise (Postpetition) Accounts payable 26,459,206 Interest Payable 373,931 Accrued expenses 8,692,785 Other liabilities 110,749 Deferred Revenues 2,384,883 -------------- 38,021,554 Total current liabilities 771,961,815 Deferred income tax 8,534 -------------- Total liabilities $771,970,349 Shareholder's equity: Common stock-Class A 24,951,270 Common stock-Class B 12,595,095 Additional Paid in capital 275,496,988 Legal reserve 2,043,242 Retained earnings (Losses) (18,254,371) Retained earning (Loss) Prior years (750,453,345) Currency translation (2,023,762) -------------- SHAREHOLDER'S EQUITY, NET ($455,644,883) TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $316,325,466 ============== Tricom S.A., et al. Consolidated Statements of Operations (Unaudited) For the Month Ended June 30, 2008 Operating revenues $18,625,253 Operating costs & Administrative expenses (18,454,491) Restructuring Related Items (2,373,000) -------------- Operating income (2,202,238) Interest expenses (373,931) Interest income 39,162 Foreign currency exchange 161,822 Other 37,728 -------------- Total other income (expenses) (135,219) -------------- Net earnings (loss) Pre-Tax (2,337,457) Net earnings (Loss) ($2,337,457) ============== Tricom S.A., et al. Statement of Cash Flows (Unaudited) For the Month Ended June 30, 2008 Cash Flows from operating activities: Cash received from customers $16,725,596 Cash Paid to suppliers and employees (11,466,835) Restructuring Related Items (2,373,000) Interest received on deposits 39,162 Interest paid (373,931) Other operating activities 199,550 -------------- Net cash provided by (used in) operating activities 2,750,542 Cash flows from investing activities: Acquisition of property and equipment (3,466,473) Pledged Securities (477) -------------- Net cash used in investing activities (3,466,950) Cash Flows from financing activities[1]: Overdraft Obtained (106,423) Borrowed funds from banks (5,255) Current portion of long term debt (37,952) Current portion of capital leases (5,629) -------------- Net cash provided (used) by financing activities (155,259) -------------- Increase (Decrease) of cash and cash equivalents (871,667) Cash and cash equivalents at beginning of the period 25,388,214 Cash and cash equivalents at end of the period $24,516,547 ============== Reconciliation between net earnings and net cash provided by (used in) operating activities Net earnings (Loss) (2,337,457) Adjustments to reconcile net earnings (Loss) and net cash provided by (used in) operating activities Depreciation 3,518,676 Allowance for doubtful accounts 1,047,854 Amortizations issue cost 18,077 INCREASE IN: Accounts receivable-Employees. 22,410 Accounts receivable-Customers (598,653) Prepaid expenses (913,292) Earned Interest 156,843 Accounts payable-Carriers 870,235 Accounts payable-Suppliers 5,298,291 Accrued expenses (2,750,306) Accounts payable-Other (22,862) Other liabilities (158,970) DECREASE IN: Accounts receivable-Carrier (1,251,851) Accounts receivable-Other (49,153) Inventories 190,997 Prepaid expenses (353,344) Other Assets 63,047 -------------- TOTAL ADJUSTMENTS 5,087,999 Net cash used in operating activities $2,750,542 ============== For the month ended June 30, 2008, the Debtors disclose a total of $21,093,521 of disbursements: Tricom S.A. $18,090,012 Tricom USA Inc. 829,497 TCN Dominicana S.A. 2,174,012 About Tricom S.A. Tricom, S.A., was incorporated in the Dominican Republic on January 25, 1988, as a Sociedad Anonima. Tricom is one of the pre-eminent full service communications services providers in the Dominican Republic. Headquartered in Santo Domingo, Tricom offers local, long distance, and mobile telephone services, cable television and broadband data transmission and Internet services, which are provided to more than 729,000 customers. Tricom's wireless network covers about 90% of the Dominican Republic's population. Tricom's local service network is 100% digital. The Company also owns interests in undersea fiber- optic cable networks that connect and transmit telecommunications signals between Central America, the Caribbean, the United States and Europe. Tricom USA, Inc., a wholly owned subsidiary of Tricom, was incorporated in Delaware in 1992, and at that time was known as Domtel Communications. A name change was effected in 1997 and Domtel Communications formally became Tricom USA, Inc. Tricom USA originates, transports and terminates international long-distance traffic using switching stations and other telecommunications equipment located in New York and Florida. Tricom S.A. and its U.S. affiliates filed for Chapter 11 protection on Feb. 29, 2008 (Bankr. S.D. N.Y. Case No. 08- 10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP, in New York City, represent the Debtors. When the Debtors' filed for protection from their creditors, they listed total assets of US$327,600,000 and total debts of US$764,600,000. (Tricom Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000) ZIFF DAVIS: Submits June 2008 Monthly Operating Report ------------------------------------------------------ Ziff Davis Media, Inc. Summary of Cash Receipts & Disbursements For the period ended June 2008 Beginning balance in all accounts $23,624,829 RECEIPTS: Receipts from operations 3,719,495 Subtenant & TSA 1,033,352 Interest income 23,960 ZDE case 32,973 ------------ Receipts Total 4,809,782 DISBURSEMENTS: Payroll, taxes, & benefits Payroll & payroll taxes 1,900,610 401k 126,914 UHC & Metlife 110,016 Flex spending 20,000 Insurance benefit invoices 11,383 Necessary expenses Rent NY & SF 1,302,040 Operating expenses 1,608,450 Financial restructuring 1,314,067 Restricted account disbursements - ZDE disbursements - ------------ Disbursements Total 6,393,484 Net Receipts (Disbursements) (1,583,702) Ending Book Cash Balance 22,041,127 Ending Bank Balance at 5/31/08 Merrill Lynch - Main operating acct. 13,494,600 Bank of New York - Legacy operating acct. 1 Bank of New York - Overnight investment acct. 427,437 U.S. Bank - Subscriptions receivable acct. 37,456 Bank of New York - Advertising credit card 144,425 receivables acct. Merrill Lynch - Payroll acct. 41,870 Merrill Lynch - Flex acct. 9,407 Merrill Lynch - Refunds acct. 4,084 Merrill Lynch - Sweepstakes acct. 17,120 Merrill Lynch - Segregated acct. 8,165,471 JPMorgan Chase - Inactive 59,244 LaSalle Bank - Inactive - U.S. Bank - Inactive 10,000 ------------ Ending balance in all accounts 22,411,118 Outstanding checks (245,753) Other reconciling items (124,238) ------------ Ending Book Balance at 4/30/08 $22,041,127 ============ Ziff Davis Media Inc. submitted to the Court, on July 22, 2008, its Summary of Cash Receipts & Disbursements for the month of June, but did not include a report on its Balance Sheet and Statement of Operations. A full-text copy of Ziff Davis' Monthly Operating Report for the month of June is available for free at: http://bankrupt.com/misc/ZiffJune08MOR.pdf About Ziff Davis Media, Inc. Headquartered in New York city, New York, Ziff Davis Media, Inc. -- http://www.ziffdavis.com/-- and its affiliates are integrated media companies serving the technology and videogame markets. They are information services and marketing solutions providers of technology media, including publications, Websites, conferences, events, eSeminars, eNewsletters, custom publishing, list rentals, research and market intelligence. Their US-based media properties reach over 22 million people per month at work, home and play. They operate in three segments: the Consumer Tech Group, which includes PC Magazine and pcmag.com; the Enterprise Group, which includes eWEEK and eweek.com, and the Game Group, which includes Electronic Gaming Monthly and 1up.com. The company and six debtor-affiliates filed for bankruptcy protection on March 5, 2008 (Bankr. S.D.N.Y., Case No. 08-10768). Carey D. Schreiber, Esq. at Winston & Strawn, LLP represents the Debtors in their restructuring efforts. The Court confirmed the Debtors' Second Amended Plan of Reorganization on June 17, 2008. The Debtors emerged from bankruptcy protection on July 1, 2008. (Ziff Davis Bankruptcy News, Issue No. 17, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstandor 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 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. 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For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, Philline P. Reluya, Joseph Medel C. Martirez, Ma. Cristina I. Canson, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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