TCR_Public/090117.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, January 17, 2009, Vol. 13, No. 16

                            Headlines



ACCEPTANCE INSURANCE: Posts $15,169 Net Loss in December 2008
ATA AIRLINES: Files Monthly Operating Report for November 2008
BOSCOV'S INC: Files Monthly Operating Report -- Ended November 29
KUSHNER-LOCKE: Posts $68,675 Net Loss in October 2008
PROPEX INC: Files Monthly Operating Report for November 2008

REUNION INDUSTRIES: Posts $429,000 Net Loss in November 2008
TROPICANA ENTERTAINMENT: Files Operating Report for November 2008
WASHINGTON MUTUAL: Files Monthly Operating for November 2008



                            *********

ACCEPTANCE INSURANCE: Posts $15,169 Net Loss in December 2008
-------------------------------------------------------------
Acceptance Insurance Companies Inc. reported total assets of
$22,769,610, total liabilities of $138,180,683, and stockholders'
deficit of $115,411,073 as of Dec. 31, 2008.

For the month ended Dec. 31, 2008, the Debtor generated total
revenue of $789 and incurred a net loss of $15,169.

A full-text copy of the Debtor's December 2008 monthly report is
available for free at http://researcharchives.com/t/s?3810

                  About Acceptance Insurance

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

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


ATA AIRLINES: Files Monthly Operating Report for November 2008
--------------------------------------------------------------
ATA Airlines' Chief Restructuring Officer Steve Turoff filed with
the U.S. Bankruptcy Court for the Southern District of Indiana the
company's operating report for the period Nov. 1 to 30, 2008.

Mr. Turoff disclosed that ATA Airlines had ($230,901) in cash
profit and $14,437 in total payables for November.

The total professional fee incurred by or on behalf of ATA
Airlines during the month is $821,433 for services related to its
bankruptcy case.

                     ATA Airlines, Inc.
                 Receipts and Disbursements
                Month Ended November 30, 2008

RECEIPTS
Military                                                 -
Charter                                                  -
Scheduled Service                                        -
  U.S. Bank                                               -
  Amex                                                    -
  Discover                                                -
  Diner's Club                                            -
  Other Scheduled Service                                 -
Asset Sales--Inventory                              67,518
Asset Sales--Ground Equipment                        4,000
Asset Sales--Rotables                               49,995
Return of Deposits/Prepaids                              -
Cash Collateral/LOCs                               211,620
Interest                                             9,155
Miscellaneous                                      372,238
                                               ------------
Total                                             $714,526
                                               ============

DISBURSEMENTS
Base Payroll Inc. All Taxes                       $258,933
Stay Bonus                                               -
Benefits                                             7,433
Employee Expense Payments                            2,702
Facilities                                          22,009
Utilities/Communications                            33,139
Contract Labor                                      39,126
Professionals                                      462,760
US Trustee                                               -
Aircraft Ferry Cost                                  3,150
Engine Changes/Certificate Mx                       90,087
Insurance--D&O/Misc.                                     -
Health Insurance Run-off Reserve                         -
Cobra Reserve                                            -
Security                                               831
Shipping/Cargo                                       8,331
Returned Checks                                          -
Miscellaneous                                       16,926
                                               ------------
Total                                             $945,427
                                               ============

Beginning Balance                               $46,511,077
Receipts                                            714,526
Disbursements                                      (945,427)
                                               ------------
Ending Balance                                  $46,280,176
                                               ============

                        About ATA Airlines

Headquartered in Indianapolis, Indiana, ATA Airlines, Inc., was 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 submitted to the Court its Chapter 11 Plan of
Reorganization and accompanying Disclosure Statement on Dec. 12,
2008, two weeks after it completed the sale of its key assets to
Southwest Airlines Inc.

(ATA Airlines Bankruptcy News; Bankruptcy Creditors' Services Inc.
http://bankrupt.com/newsstand/or 215/945-7000).


BOSCOV'S INC: Files Monthly Operating Report -- Ended November 29
-----------------------------------------------------------------
BSCV, Inc., and its debtor-affiliates reported about $445,000 in
assets and $440,000 in debts as of November 29, 2008.  On a
consolidated basis, the Debtors reported about $178,000,000 in
total receipts and $175,000,000 in total disbursements for the
month ended November 29, 2008.

A full-text copy of the Debtors' schedule of cash receipts and
disbursements, balance sheet and statement of operations for
November 2008 is available for free at:

         http://bankrupt.com/misc/Boscovs_MOR_Nov2008.pdf

                        About Boscov's Inc.

Headquartered in Reading, Pennsylvania, Boscov's Inc. --
http://www.boscovs.com/-- is America's largest family-owned
independent department store, with 49 stores in Pennsylvania, New
York, New Jersey, Maryland, Delaware and Virginia.

Boscov's Inc. and its debtor-affiliates filed for Chapter 11
protection on Aug. 4, 2008 (Bankr. D. Del. Case No.: 08-11637).
Judge Kevin Gross presides over the cases.

David G. Heiman, Esq., and Thomas A. Wilson, Esq., at Jones Day,
serve as the Debtors' lead counsel.  The Debtors' financial
advisor is Capstone Advisory Group and their investment banker is
Lehman Brothers, Inc.  The Debtors' claims agent is Kurtzman
Carson Consultants L.L.C.

Boscov's listed assets of $318.9 million against debt totaling
$412.8 million.  Secured creditors are owed $196.2 million.

On November 21, Judge Kevin Gross approved the sale of the
Debtors' assets to a family group led by former company chairman
Albert Boscov and former company executive Edwin Lakin.  The deal,
valued at $300 million, was completed in December.  Following the
sale Boscov's Inc., and Boscov's Department Store, LLC, revised
their corporate names to BSCV, Inc., and BSCV Department Store,
LLC.

(Boscov's Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)


KUSHNER-LOCKE: Posts $68,675 Net Loss in October 2008
-----------------------------------------------------
The Kushner-Locke Company delivered its monthly operating report
for the period Oct. 1, 2008, through Oct. 31, 2008.

For the period, the Debtor generated zero revenue and incurred a
net loss of $68,675.

A full-text copy of the Debtor's monthly operating report is
available for free at http://researcharchives.com/t/s?3812

Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio.  The company,
along with its debtor-affiliates filed for chapter 11 protection
on Nov. 21, 2001 (Bankr. C.D. Calif. Lead Case No. 01-44828).
Carol Chow, Esq., and Charles Axelrod, Esq., at Stutman, Treister
& Glatt; Mara Mornet-Ritt, Esq., at Brandon & Morner-Ritt; and
Martin Fineman, Esq., at Davis Wright Tremaine LLP, represent the
Debtors in their restructuring efforts.  Jeremy V. Richards, Esq.,
at Pachulski Stang Ziehl & Jones LLP, represent the Official
Committee of Unsecured Creditors as counsel.


PROPEX INC: Files Monthly Operating Report for November 2008
------------------------------------------------------------

                          Propex Inc.
         Unaudited Condensed Consolidated Balance Sheet
                   As of November 30, 2008

ASSETS:
Current Assets:
   Cash and cash equivalents                        $50,000,000
   Restricted Cash                                      600,000
   Accounts Receivable, net                          73,100,000
   Accounts Receivable claims - prepetition                   0
   Inventories, net                                  88,700,000
   Deferred income taxes                              8,700,000
   Prepaid expenses and other current assets         17,200,000
   Assets held for sale                               6,200,000
                                                   ------------
Total current assets                                244,500,000
Other assets:
   Goodwill                                                   0
   Intangible assets, net                            15,300,000
   Deferred income taxes                                      0
   Investment in subsidiaries                                 0
   Intercompany notes receivable                              0
   Other assets                                       7,000,000
                                                   ------------
Property, plant and equipment, net                  190,100,000
                                                   ------------
Total assets                                       $456,900,000
                                                   ============

LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Prepetition
   Accounts payable                                   8,000,000
   Accrued liabilities                                1,000,000
   Current portion of debt and accrued interest     382,200,000
   Accrued pension obligations                                0
   Restructuring and other similar costs                700,000
   Other current liabilities                            300,000
Postpetition
   Accounts payable                                  18,600,000
   Accrued liabilities                               17,700,000
   Current portion of debt and accrued interest      37,400,000
   Accrued pension obligations                                0
   Restructuring and other similar costs                700,000
   Other current liabilities                          1,500,000
                                                   ------------
Total current liabilities                           468,100,000

Non-current liabilities:
Prepetition
   Accrued pension and other postretirement
   benefit liabilities                               16,500,000
   Other  non-current liabilities                             0
Postpetition
   Intercompany notes payable                                 0
   Debt, less current portion                                 0
   Deferred income taxes                             11,300,000
   Accrued pension and other postretirement
   benefit liabilities                               24,500,000
   Other non-current liabilities                      1,600,000
                                                   ------------
  Total non-current liabilities                      53,900,000

  Total stockholder's equity
   Common stock                                               0
   Paid-in capital                                   96,400,000
   Accumulated other comprehensive income            (3,100,000)
   Retained earnings - prior year                   (88,300,000)
   Retained earnings - current year                 (70,100,000)
                                                   ------------
  Total stockholder's equity                        (65,100,000)
                                                   ------------
Total Liabilities and stockholder's equity        $456,900,000
                                                   ============

                        Propex Inc.
   Unaudited Condensed Consolidated Statements of Operations
             For Month Ended November 30, 2008

Net revenue                                         $31,000,000
Cost of sales                                        35,700,000
                                                   ------------
   Gross profit                                      (4,700,000)

Operating expenses:
   Selling, general and administrative                6,100,000
   Other(income) expense, net                           100,000
   Add Back depreciation and amortization             2,100,000

EBITDA                                              (8,800,000)
   Depreciation & Amortization                        2,100,000
   Interest expense                                   1,600,000
   Restructuring and similar costs                      900,000
   Non-cash pension and other expense                         0
   Other non-operating expense(income)
     Impairment of property, plant and equipment              0
     Pension curtailment(gain), net of settlement loss        0
     Debt forgiveness                                         0
     Other                                                    0
   Equity(income) loss from sub-earnings                      0
                                                   ------------
  Income(loss) before income taxes                  (13,400,000)
     Income tax provision (benefit)                     200,000
                                                   ------------
Net income (loss)                                 $(13,600,000)
                                                   ============

                         Propex Inc.
                  Statement of Cash Flows
             For Month Ended November 30, 2008

Cash flows from operating activities
  Net income(loss)                                 ($13,600,000)
Adjustments to reconcile, net income to net cash
  provided by (used) in operating activities:
  Depreciation and amortization                       2,000,000
  Non-cash interest on debt                                   0
  Amortization of bank fees                                   0
  Net gain on dispositions of property and
  and equipment                                               0
  Stock-based compensation                                    0
  Impairment of property, plant and equipment         1,200,000
  Impairment of goodwill                                      0
  Impairment of intangibles                                   0
  Pension and post-retirement benefit cost              200,000
  Deferred income taxes                                       0
Changes in operating assets and liabilities
  Decrease(increase) in assets-prepetition                    0
  Decrease(increase) in assets-postpetition          25,700,000
  (Decrease) increase in liabilities-prepetition        100,000
  (Decrease)increase in liabilities-postpetition     (4,900,000)
                                                    ------------
Net cash provided (used) by operating activities    10,700,000

Cash flows from investing activities
   Capital expenditures                                (600,000)
   Proceeds from sale of property and equipment               0
   Acquisition of business(net of cash acquired)              0
                                                    ------------
     Net cash used in investing activities             (600,000)
Cash flows from financing activities
   Payments of long-term debt principal                       0
   Proceeds from issuance of debt                             0
   Debt issuance costs                                        0
   Dividends                                                  0
   Net receipts from unconsolidated parent company            0
   Activity with Affiliates                             100,000
                                                   ------------
Net cash provided by (used in) financing activities    100,000
   Effect of changes in foreign exchange rates on
    cash and cash equivalents                          (500,000)
                                                   ------------
  Change in cash and cash equivalents                 9,700,000
                                                   ------------
  Cash and cash equivalents-beginning period         40,300,000
                                                   ------------
  Cash and cash equivalents- end period             $50,000,000
                                                   ============

                       About Propex Inc.

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

The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No.
08-10249).  The Debtors have selected Edward L. Ripley, Esq.,
Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them.  The Official Committee of
Unsecured Creditors have tapped Ira S. Dizengoff, Esq., at Akin
Gump Strauss Hauer & Feld, LLP, in New York, to be its counsel.

Propex Inc., and its affiliates delivered to the Court a Joint
Plan of Reorganization and Disclosure Statement on October 29,
2008.  Propex's exclusive period to solicit acceptances of the
Plan expires Dec. 29, 2008.

As of June 29, 2008, the Debtors' balance sheet showed total
assets of US$562,700,000, and total debts of US$551,700,000.

The Debtors have filed their Disclosure Statement and Plan of
Reorganization on October 29, 2008.

(Propex Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


REUNION INDUSTRIES: Posts $429,000 Net Loss in November 2008
------------------------------------------------------------
Reunion Industries, Inc., posted a net loss of $429,000 on net
sales $1,054,000 for the month of November 2008.

As of Nov. 30, 2008, the Debtor had $24,191,000 in total assets,
$9,262,000 in total liabilities, and $14,929,000 in total
stockholders' equity.

A full-text copy of the Debtor's November 2008 monthly operating
report is available for free at:

               http://researcharchives.com/t/s?3811

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

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


TROPICANA ENTERTAINMENT: Files Operating Report for November 2008
-----------------------------------------------------------------

                  Tropicana Entertainment, LLC
                         Balance Sheet
                    As of November 30, 2008

                            ASSETS

Current Assets
Accounts receivable - trade                                $0
Cash & temporary cash investments                  36,697,000
Restricted cash                                             0
Deposits                                            5,124,000
Inventories                                                 0
Other receivables                                           0
Prepaid expenses                                      124,000
                                                --------------
Total Current Assets                                41,944,000

Property and Equipment
Buildings                                                   0
Construction in progress                              509,000
Furniture & fixtures                                        0
Land                                                        0
Riverboats, barges & ramps                                  0
Vehicles                                                    0
                                                --------------
Total Property and Equipment                           509,000

Reserve for Depreciation
Boats, barges & ramp reserve for depreciation               0
Building reserve for depreciation                           0
Furn. & fixtures reserve for depreciation                   0
Gaming entertainment reserve for depreciation               0
Vehicle reserve for depreciation                            0
                                                --------------
Total Reserve for Depreciation                               0

Other Assets
Investments                                     2,775,215,000
Other assets                                       29,982,000
                                                --------------
Total Other Assets                               2,805,197,000
                                                --------------
TOTAL ASSETS                                    $2,847,650,000
                                                ==============

             LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities
Accounts payable                                  $17,719,000
Accrued other expenses                              9,546,000
Accrued payroll                                       611,000
Deferred income                                             0
Notes payable - Evansville                                  0
Payroll taxes payable                                       0
Sales tax payable                                           0
Current portion of long-term debt due 1 Yr         67,000,000
Amounts due to affiliated guarantors               17,600,000
                                                --------------
Total Current Liabilities                          112,476,000

Long Term Debt Due Beyond One Year
DIP financing                                      67,000,000
                                                --------------
Total Long Term Debt Due Beyond One Year            67,000,000

Other Liabilities
Deferred fed taxes                                          0
Deferred rent                                               0
Deferred state inc taxes                                    0
Intercompany                                       49,503,000
                                                --------------
Total Other Liabilities                             49,503,000

Total Liabilities not Subject to Compromise        161,979,000

Liabilities Subject to Compromise
Non-intercompany                                  838,680,000
Intercompany                                    1,593,200,000
                                                --------------
Total Liabilities Subject to Compromise          2,498,880,000
                                                --------------
Total Liabilities                               $2,660,859,000
                                                ==============

                 Tropicana Entertainment, LLC
                       Income Statement
             For the Month Ended November 30, 2008

Operating Revenues
Casino revenue                                             $0
Rooms revenue                                               0
Food & beverage revenue                                     0
Other casino & hotel revenue - less int income              0
                                                --------------
Opening Revenues                                             0
Less promotional allowances                                  0
                                                --------------
Net Operating Revenues                                       0

Operating Expenses
Casino operating expenses                                   0
Rooms operating expenses                                    0
Food and beverage operating expenses                        0
Other casino and hotel operating expenses                   0
Utilities                                                   0
Marketing, advertising and casino promotions            7,000
Repairs and maintenance                                10,000
Insurance                                              43,000
Property and local taxes                                    0
Gaming tax and licenses                                     0
Administrative and general                          2,186,000
Leased land and facilities                                  0
Depreciation and amortization                               0
Loss on disposition of assets                               0
Bad debt expense - loans                                    0
Impairment charge                                           0
Restructuring cost                                          0
Chapter 11 reorg. & other prof. Fees                4,611,000
                                                --------------
Total Operating Expense                              6,856,000

Income from Operations                              (6,856,000)

Other Income (Expense)
Interest expense                                  (10,575,000)
Intercompany interest income                           57,000
Intercompany interest expense                         (75,000)
                                                --------------
Total Other Income (Expense)                       (10,592,000)

Federal Income Tax                                           0

Income Before Minority Interest                    (17,448,000)
                                                --------------
NET INCOME                                        ($17,448,000)
                                                ==============

                 About Tropicana Entertainment

Based in Crestview Hills, Kentucky, Tropicana Entertainment LLC --
http://www.tropicanacasinos.com/-- is an indirect subsidiary of
Tropicana Casinos and Resorts.  The company is one of the largest
privately-held gaming entertainment providers in the United
States.  Tropicana Entertainment owns eleven casino properties in
eight distinct gaming markets with premier properties in Las
Vegas, Nevada, and Atlantic City, New Jersey.

Tropicana Entertainment LLC filed for Chapter 11 protection on
May 5, 2008, (Bankr. D. Del. Case No. 08-10856).  Its debtor-
affiliates filed for separate Chapter 11 petitions but with no
case numbers assigned yet.  Kirkland & Ellis LLP and Mark D.
Collins, Esq., at Richards Layton & Finger, represent the Debtors
in their restructuring efforts.  Their financial advisor is Lazard
Ltd.  Their notice, claims, and balloting agent is Kurtzman Carson
Consultants LLC.  Epiq Bankruptcy Solutions LLC is the Debtors'
Web site administration agent.  AlixPartners LLP is the Debtors'
restructuring advisor.

Stroock & Stroock & Lavan LLP and Morris Nichols Arsht & Tunnell
LLP represent the Official Committee of Unsecured Creditors in
this case.  Capstone Advisory Group LLC is financial advisor to
the Creditors' Committee.

The Court has extended the Debtors' exclusive period to file a
plan, through and including Jan. 12, 2009, and to solicit votes
on the plan through and including March 13, 2009.

(Tropicana Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


WASHINGTON MUTUAL: Files Monthly Operating for November 2008
------------------------------------------------------------
Washington Mutual, Inc., and WMI Investment Corp. delivered to
the Court on January 6, 2009, their monthly operating report for
the period from November 1 to November 30, 2008.

John Maciel, WaMu's chief financial officer, informed investors
and potential investors "not to place undue reliance" upon the
information contained in the Monthly Operating Report, which was
not prepared for the purpose of providing the basis for an
investment decision relating to any of the securities of the
Company.

Mr. Maciel added that the Operating Report "was not audited or
reviewed by independent accountants, was not prepared in
accordance with Generally Accepted Accounting Principles in the
United States, is in a format prescribed by applicable bankruptcy
laws, and is subject to future adjustment and reconciliation."

Moreover, the results set forth in the Operating Report should
not be viewed as indicative of future results.  The Debtors
reserve all rights to amend the results represented in the
Operating Report, he said.

                     WASHINGTON MUTUAL, INC.
                     Unaudited Balance Sheet
                     As of November 30, 2008

ASSETS
Unrestricted cash and cash equivalents           $4,262,555,609
Restricted cash and cash equivalents                140,220,577
Investment Securities                                61,783,189
Accrued interest receivable                           1,576,655
Accounts receivable                                           0
Income tax receivable                               496,038,922
Prepaid expenses                                     13,440,185
Cash surrender value of BOLI/COLI                    85,991,128
Funded Pension                                       39,173,922
Other investments                                    24,406,285
Investment in subsidiaries                        1,901,236,010
Notes receivable, intercompany                       58,208,412
Other assets                                         23,965,565
                                                 ---------------
Total Assets                                      $7,108,596,459
                                                 ===============

LIABILITIES NOT SUBJECT TO COMPROMISE
Accounts payable                                             $0
Taxes payable                                                 0
Wages payable                                                 0
Other accrued liabilities                            12,534,792
Rent and equipment lease payable                        125,132
Other liabilities - intercompany                              0
Other postpetition liabilities                                0
Minority interest                                     2,000,000
                                                 ---------------
Total Postpetition Liabilities                       14,659,924

LIABILITIES NOT SUBJECT TO COMPROMISE
Senior debt                                       4,108,911,139
Subordinated debt                                 2,356,467,965
Accrued interest payable                             75,907,764
Notes payable - intercompany                        684,092,246
Accrued interest payable - intercompany                   3,012
Accounts payable                                              0
Accounts payable - intercompany                               0
Taxes payable                                       550,131,932
Payroll and benefit accruals                        407,200,176
Other accrued liabilities                            92,618,152
Other prepetition liabilities                               223
                                                 ---------------
Total Prepetition Liabilities                     8,275,332,609
                                                 ---------------
Total Liabilities                                 8,289,992,533

SHAREHOLDERS' EQUITY
Preferred stock                                   3,392,341,954
Common stock                                     12,988,753,556
Other comprehensive income                       (2,173,037,452)
Retained earnings - prepetition                 (15,366,800,538)
Retained earnings - postpetition                    (22,653,594)
                                                ---------------
Total Shareholders' Equity                       (1,181,396,074)
                                                ---------------
Total Liabilities and Shareholders' Equity        $7,108,596,459
                                                 ===============

                    WASHINGTON MUTUAL, INC.
                Unaudited Statement of Operations
             For the period Nov. 1 to Nov. 30, 2008

REVENUES
Interest income:
Cash equivalents                                     $1,550,260
Securities                                              262,185
Notes receivable - intercompany                          99,354
Other                                                         0
                                                 ---------------
Total Interest Income                                 1,911,799

Earnings from subsidiaries and other
  equity investments                                 (20,918,411)
Gains (losses) from securities                              999
Other income                                               (569)
                                                 ---------------
Total Revenues                                      (19,006,182)

OPERATING EXPENSES
Compensation and benefits                               110,733
Occupancy and equipment                                  59,690
Professional fees                                       469,283
Postage, express mail and courier                             0
Other outside services                                        0
Loss (Income) from BOLI/COLI policies                  (975,695)
Management fees/transition services                   1,000,000
Insurance                                             1,684,475
Other                                                     1,661
                                                 ---------------
Total Operating Expenses                              2,350,147

Net profit (loss) before other income
and expenses                                        (21,356,329)

OTHER INCOME AND EXPENSES
Interest expense:
Notes payable - intercompany                                  0
Borrowings                                                    0
                                                 ---------------
Total Interest Expense                                        0

Other expense (income)                                        0
                                                 ---------------
Net profit (loss) before
reorganization items                                (21,356,329)

REORGANIZATION ITEMS
Professional fees                                     5,452,936
U.S. Trustee quarterly fees                              12,675
Gains (losses) from sale of assets                            0
Other reorganization expenses                                 0
                                                 ---------------
Total Reorganization Items                            5,465,611
                                                 ---------------
Net profit (loss) before income taxes                (26,821,940)

Income taxes                                                   0
                                                 ---------------
NET PROFIT (LOSS)                                   ($26,821,940)

                  WASHINGTON MUTUAL, INC.
   Unaudited Schedule of Cash Receipts and Disbursements
          For the period Nov. 1 to Nov. 30, 2008

Opening Balance 10/31/08                          $3,945,749,192

RECEIPTS
Interest & investment returns                             1,185
Tax refunds                                             782,553
Reimbursements from WMB                                       0
Reimbursements from subs                                      0
Sales of assets/securities                              297,421
Covered bond deposit                                  1,450,000
Miscellaneous Receipts                                   40,000
                                                 ---------------
Total Receipts                                         2,571,159

TRANSFERS
General to Disbursement                                       0
Sweep to Money Market account                                 0
General to Payroll                                            0
To new Bank Account                                           0
                                                 ---------------
Total Transfers                                                0

DISBURSEMENTS
Insurance                                             5,000,000
Retainer                                                250,000
Professional fees                                     1,184,062
Bank Fees                                                     0
U.S. trustee quarterly fees                                 325
Miscellaneous adjustments                                10,924
                                                 ---------------
Total Disbursements                                    6,445,311

Net Cash Flow                                         (3,874,152)
                                                 ---------------
Cash - End of Month                                3,941,675,039

GL Balance                                         3,941,675,039

Net value -- short-term securities                   320,680,570
                                                 ---------------
Total Cash & Cash Equivalents                     $4,262,555,609
                                                 ===============

                      WMI INVESTMENT CORP.
                    Unaudited Balance Sheet
                    As of November 30, 2008

ASSETS
Unrestricted cash and cash equivalents             $111,081,350
Restricted cash and cash equivalents                          0
Investment Securities                               189,211,280
Accrued interest receivable                           1,759,555
Accounts receivable                                           0
Income tax receivable                                17,897,736
Prepaid expenses                                              0
Cash surrender value of BOLI/COLI                             0
Funded Pension                                                0
Other investments                                    65,433,305
Investment in subsidiaries                                    0
Notes receivable, intercompany                      565,844,197
Other assets                                         32,911,837
                                                 ---------------
Total Assets                                        $984,139,260
                                                 ===============

LIABILITIES NOT SUBJECT TO COMPROMISE
Accounts payable                                             $0
Taxes payable                                                 0
Wages payable                                                 0
Other accrued liabilities                               143,528
Rent and equipment lease payable                              0
Other liabilities - intercompany                              0
Other postpetition liabilities                                0
Minority interest                                             0
                                                 ---------------
Total Postpetition Liabilities                          143,528

LIABILITIES NOT SUBJECT TO COMPROMISE
Senior debt                                                   0
Subordinated debt                                             0
Accrued interest payable                                      0
Notes payable - intercompany                                  0
Accrued interest payable - intercompany                       0
Accounts payable                                              0
Accounts payable - intercompany                               0
Taxes payable                                                 0
Payroll and benefit accruals                                  0
Other accrued liabilities                                     0
Other prepetition liabilities                                 0
                                                 ---------------
Total Prepetition Liabilities                                 0
                                                 ---------------
Total Liabilities                                       143,528

SHAREHOLDERS' EQUITY
Preferred stock                                               0
Common stock                                      1,000,000,000
Other comprehensive income                           (7,909,774)
Retained earnings - prepetition                      14,133,260
Retained earnings - postpetition                    (22,227,753)
                                                 ---------------
Total Shareholders' Equity                          983,995,733
                                                 ---------------
Total Liabilities and Shareholders' Equity          $984,139,261
                                                 ===============

                    WMI INVESTMENT CORP.
               Unaudited Statement of Operations
           For the period Nov. 1 to Nov. 30, 2008

REVENUES
Interest income:
Cash equivalents                                             $0
Securities                                            2,861,417
Notes receivable - intercompany                               1
Other                                                         0
                                                 ---------------
Total Interest Income                                 2,861,418

Earnings from subsidiaries and other
  equity investments                                           0
Gains (losses) from securities                      (24,945,318)
Other income                                                  0
                                                 ---------------
Total Revenues                                      (22,083,900)

OPERATING EXPENSES
Compensation and benefits                                     0
Occupancy and equipment                                       0
Professional fees                                             0
Postage, express mail and courier                             0
Other outside services                                        0
Loss (Income) from BOLI/COLI policies                         0
Management fees/transition services                           0
Insurance                                                     0
Other                                                   143,853
                                                 ---------------
Total Operating Expenses                                143,853

Net profit (loss) before other income
and expenses                                        (22,227,753)

OTHER INCOME AND EXPENSES
Interest expense:
Notes payable - intercompany                                  0
Borrowings                                                    0
                                                 ---------------
Total Interest Expense                                        0

Other expense (income)                                        0
                                                 ---------------
Net profit (loss) before
  reorganization items                               (22,227,753)

REORGANIZATION ITEMS
Professional fees                                             0
U.S. Trustee quarterly fees                                   0
Gains (losses) from sale of assets                            0
Other reorganization expenses                                 0
                                                 ---------------
Total Reorganization Items                                    0
                                                 ---------------
Net profit (loss) before income taxes                (22,227,753)

Income taxes                                                   0
                                                 ---------------
NET PROFIT (LOSS)                                   ($22,227,753)

                    WMI INVESTMENT CORP.
   Unaudited Schedule of Cash Receipts and Disbursements
           For the period Nov. 1 to Nov. 30, 2008

Opening Balance 10/31/08                          $4,002,091,486

RECEIPTS
Interest & investment returns                         2,252,523
Tax refunds                                             782,553
Reimbursements from WMB                                       0
Reimbursements from subs                                      0
Sales of assets/securities                           52,785,267
Covered bond deposit                                  1,450,000
Miscellaneous Receipts                                   40,000
                                                 ---------------
Total Receipts                                        57,310,343

TRANSFERS
General to Disbursement                                       0
Sweep to Money Market account                       (51,385,663)
General to Payroll                                            0
To new Bank Account                                           0
                                                 ---------------
Total Transfers                                      (51,385,663)

DISBURSEMENTS
Insurance                                             5,000,000
Retainer                                                250,000
Professional fees                                     1,184,062
Bank Fees                                                     2
U.S. trustee quarterly fees                                 650
Miscellaneous adjustments                                10,724
                                                 ---------------
Total Disbursements                                    6,445,438

Net Cash Flow                                           (520,759)
                                                 ---------------
Cash - End of Month                                4,001,570,727

GL Balance                                         4,001,570,727

Net value -- short-term securities                   372,066,233
                                                ----------------
Total Cash & Cash Equivalents                     $1,373,636,959
                                                 ===============

The Debtors' cash receipts and disbursements are with respect to
their deposit accounts and general accounts at Washington Mutual
Bank/JPMorgan Chase Bank, Bank of New York Mellon, U.S. Bank and
Bank of America.

A detailed schedule of WaMu's cash receipts and disbursements is
available for free at:

    http://bankrupt.com/misc/WaMu_CashDisbursementNov2008.pdf

                   WaMu's Preferred Funding

Mr. Maciel reported that as of the Petition Date, the Office of
Thrift Supervision concluded that a conditional exchange of
certain securities occurred as of the Petition Date:

                                          Depositary Shares
Securities                               Exchanged Into
----------                               --------------
Washington Mutual Preferred              Series J Perpetual
(Cayman) I Ltd. 7.25% Perpetual          Non-Cumulative
Non-cumulative Preferred Securities      Fixed Rate Preferred
Series A-1                               Stock of WaMu

Washington Mutual Preferred              Series J Perpetual
(Cayman) I Ltd. 7.25% Perpetual          Non-Cumulative
Non-cumulative Preferred Securities      Fixed Rate Preferred
Series A-2                               Stock of WaMu

Washington Mutual Preferred Funding      Series I Perpetual
Trust I Fixed-to-Floating Rate           Non-Cumulative
Perpetual Non-Cumulative Trust           Fixed-to-Floating
Securities                               Rate Preferred Stock
                                          of WaMu

Washington Mutual Preferred Funding      Series L Perpetual
Trust II Fixed-to-Floating Rate          Non-Cumulative
Perpetual Non-Cumulative Trust           Fixed-to-Floating
Securities                               Rate Preferred Stock
                                          of WaMu

Washington Mutual Preferred Funding      Series M Perpetual
Trust III Fixed-to-Floating Rate         Non-Cumulative
Perpetual Non-Cumulative Trust           Fixed-to-Floating
Securities                               Rate Preferred Stock
                                          of WaMu

Washington Mutual Preferred Funding      Series N Perpetual
Trust IV Fixed-to-Floating Rate          Non-Cumulative
Perpetual Non-Cumulative Trust           Fixed-to-Floating
Securities                               Rate Preferred Stock
                                          of WaMu

WaMu has not yet reflected the Conditional Exchange and the
related attendant transactions on its financial statements.

Assuming that the Conditional Exchange has been completed, a pro
forma basis of WaMu's financial statements as of November 30,
2008, would reflect (i) a credit-to-shareholders' equity of
approximately $3.9 billion upon issuance of the New Classes of
Preferred Stock, and (ii) a corresponding loss of approximately
$3.9 billion upon conversion of the Securities, Mr. Maciel said.

In addition, Mr. Maciel disclosed that WaMu's accrued
postpetition liabilities with respect to vendors aggregate, on
account of the Vendors' services through, and as of, November 30,
2008.  These include:

                                              Accrual Through
  Vendor Accruals                                11/30/2008
  ---------------                             ---------------
  Akin Gump                                      $1,677,103
  Alvarez & Marsal                                1,320,854
  Davis Wright Tremaine                             380,619
  FTI Consulting                                    730,000
  Gibson Dunn                                       164,058
  Grant Thornton                                     69,138
  Joele Frank                                        52,084
  John Wolfe                                         53,185
  McKee Nelson                                      147,000
  Miller & Chevalier                                 48,613
  Milliman                                           20,188
  Pepper Hamilton                                   158,481
  Perkins Coie                                      260,289
  Richards Layton                                    93,585
  Shearman Sterling                                 241,620
  Simpson Thacher                                   187,448
  Towers, Perrin, Forster & Crosby, Inc.             67,658
  Weil Gotshal & Manges, LLP                      3,645,136
  KCC                                               365,483
  U.S. Trustee                                       13,000
  Miscellaneous Accruals                          2,839,243

As of November 24, 2008, WaMu paid Alvarez & Marsal's
professional fees for $1,125,521, and reimbursed the firm's
accrued expenses totaling $58,540.

Mr. Maciel certified that no property tax returns were filed
during the period from November 1 to November 30, 2008.

Mr. Maciel added that WaMu's payroll -- including the remission
of all withholding taxes, benefits and employer taxes -- is being
processed through the payroll services of JPMorgan Chase Bank, as
the acquirer of WaMu's banking operations.  WaMu reimburses
JPMorgan for all payroll expenses, he noted.

According to Mr. Maciel, these new bank accounts were opened
during the Reporting Period:

Company                    Bank                       Account No.
-------                    ----                       -----------
Washington Mutual, Inc.    U.S. Bank (Money Market)    xxxxx7001
Washington Mutual, Inc.    U.S. Bank (Custodial)       xxxxx0000
WMI Investment Corp.       U.S. Bank (Money Market)    xxxxx6001
Washington Mutual, Inc.    U.S. Bank (Custodial)       xxxxx6000

A full-text copy of WaMu's November 2008 Operating Report is
available for free at the U.S. Securities and Exchange Commission
at http://ResearchArchives.com/t/s?37f2

                    About Washington Mutual

Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries.  The company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.

Washington Mutual Bank was taken over Sept. 25 by U.S. government
regulators.  The next day, WaMu and its debtor-affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively).  Wamu owns
100% of the equity in WMI Investment.  Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695.  WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.

(Washington Mutual Inc. Bankruptcy News; Bankruptcy Creditors'
Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000)



                            *********

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                            *********

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
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USA.  Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa,
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