TCR_Public/100925.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, September 25, 2010, Vol. 14, No. 266

                            Headlines

ABITIBIBOWATER INC: Incurs $11,079,488 Net Loss in July
ALMATIS B.V.: Reports $6,559,896 Net Loss for August
GARLOCK SEALING: Had $13.3 Mil. Accounts Receivable at End of July
GREEKTOWN HOLDINGS: Reports $125,827,063 Profit for June
LEHMAN BROTHERS: Has $19.8 Billion Cash at August 31

MESA AIR: Reports $201,478,000 Net Loss for August
NORTEL NETWORKS: Reports $45 Million Net Loss for June
NORTEL NETWORKS: Reports $14 Million Net Loss for July
WASHINGTON MUTUAL: Has $4,548,425,932 Cash at End of July

                            *********

ABITIBIBOWATER INC: Incurs $11,079,488 Net Loss in July
-------------------------------------------------------

                 AbitibiBowater Inc., et al.
                 Consolidated Balance Sheet
                     As of July 31, 2010

ASSETS
Cash and cash equivalents                          $325,012,742
Receivables - Net                                   345,055,269
Inventories                                         255,085,169
Prepaid Expense and Other                            40,547,988
Notes Receivable from Affiliates                  3,360,448,902
Income Tax Receivable                                         -
Deferred Income Taxes                                         -
                                              -----------------
Total Current Assets                             4,326,150,070


Plant and Equipment                               5,263,555,728
Less Accumulated Depreciation                    (3,834,645,632)
                                              -----------------
Plant and Equipment, Net                         1,428,910,096

Goodwill/Intangible Assets                           56,352,645
Investment in Subsidiaries                       14,911,736,545
Other Assets                                        251,759,908
                                              -----------------
Total Assets                                   $21,225,828,707
                                              =================

LIABILITIES AND SHAREHOLDERS' EQUITY
Trade Accounts Payable                              $37,134,987
Accrued Liabilities                                 230,972,445
Current Portion of Long Term Debt                    40,000,000
Due to Affiliates                                   282,900,805
Income Tax Payable                                   (1,312,310)
                                              -----------------
Total Current Liabilities                          589,695,927

Long Term Debt                                                -
Reclassification to Current Portion                           -
                                              -----------------
Long Term Debt Net of Current Installments                   0

Loans from Affiliates                                         -
Other Liabilities                                   201,620,088
Deferred Income Taxes                              (170,857,285)

Liabilities Subject to Compromise
Debt                                             3,034,906,191
Debt - Affiliate                                 3,684,348,342
Accounts Payable                                   100,643,205
Other                                              818,428,014
                                              -----------------
Total Liabilities                                8,258,784,482

Shareholder Equity - Net                         12,967,044,225
                                              -----------------
Total Liabilities & Shareholders' Equity       $21,225,828,707
                                              =================

                 AbitibiBowater Inc., et al.
             Consolidated Statement of Operations
           For the period from July 1 to 31, 2010

Sales - Net                                        $375,313,930
Cost of Sales                                       381,194,253
                                              -----------------
Gross Profit (Loss)                                 24,119,677

Operating Expenses
Selling, General and Administrative                  5,869,735
Research and Development                                     -
Restructuring and Other Costs                        6,648,550
                                              -----------------
   Total Operating Expenses                          12,518,285
                                              -----------------
Operating Income (Loss)                              11,601,392

Interest Income (Expense)                          (11,945,956)
Other Income (Expense) Net                         (11,237,203)
Equity in Earnings of Subsidiaries                     470,993
                                              -----------------
   Income Before Taxes                              (11,110,774)

Income Tax Expense                                       31,286
                                              -----------------
Net income before Discontinued Operations           (11,079,488)
Discontinued Operations                                      -
                                              -----------------
Net Income (Loss)                                  ($11,079,488)
                                              =================

                 AbitibiBowater Inc., et al.
     Consolidated Schedule of Receipts and Disbursements
           For the period from July 1 to 31, 2010

Total Cash Receipts                               $373,621,000

Disbursements:
Payroll & Payroll Taxes                             34,968,000
Non-Payroll Labor                                   10,111,000
Raw Materials                                       55,296,000
Utilities                                           19,409,000
Freight                                             15,837,000
SG&A                                                12,212,000
Supplies                                            15,750,000
Rent                                                    53,000
Customer Rebates                                     2,720,000
Interest                                             9,838,000
Security Deposits                                            -
Taxes                                                        -
Other                                                6,412,000
                                              -----------------
Total Cash Disbursements                          $182,606,000
                                              =================

                     About AbitibiBowater Inc.

AbitibiBowater (OTC: ABWTQ) produces newsprint, commercial
printing papers, market pulp and wood products.  It is the eighth
largest publicly traded pulp and paper manufacturer in the world.
AbitibiBowater owns or operates 22 pulp and paper facilities and
26 wood products facilities located in the United States, Canada
and South Korea.  The Company also recycles old newspapers and
magazines.

The Company and several of its affiliates filed for protection
under Chapter 11 of the U.S. Bankruptcy Code on April 16, 2009
(Bankr. D. Del. Lead Case No. 09-11296).  The Company and its
Canadian affiliates commenced parallel restructuring proceedings
under the Companies' Creditors Arrangement Act before the Quebec
Superior Court Commercial Division the next day.  Alex F. Morrison
at Ernst & Young, Inc., was appointed CCAA monitor.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, serves as the
Debtors' U.S. bankruptcy counsel.  Stikeman Elliot LLP, acts as
the Debtors' CCAA counsel.  Young, Conaway, Stargatt & Taylor, in
Wilmington, Delaware, serves as the Debtors' co-counsel, while
Troutman Sanders LLP in New York, serves as the Debtors' conflicts
counsel in the Chapter 11 proceedings.  The Debtors' financial
advisors are Advisory Services LP, and their noticing and claims
agent is Epiq Bankruptcy Solutions LLC.  The CCAA Monitor's
counsel is Thornton, Grout & Finnigan LLP, in Toronto, Ontario.
Abitibi-Consolidated Inc. and various Canadian subsidiaries filed
for protection under Chapter 15 of the U.S. Bankruptcy Code on
April 17, 2009 (Bankr. D. Del. 09-11348).  Pauline K. Morgan,
Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt &
Taylor, in Wilmington, represent the Chapter 15 Debtors.

U.S. Bankruptcy Judge Kevin Carey handles the Chapter 11 cases of
AbitibiBowater Inc. and its U.S. affiliates and the Chapter 15
case of ACI, et al.

As of Sept. 30, 2008, the Company had $9,937,000,000 in total
assets and $8,783,000,000 in total debts.

Bankruptcy Creditors' Service, Inc., publishes AbitibiBowater
Bankruptcy News.  The newsletter provides gavel-to-gavel coverage
of the Chapter 11 proceedings and parallel proceedings under the
Companies' Creditors Arrangement Act in Canada undertaken by
Abitibibowater Inc. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000).


ALMATIS B.V.: Reports $6,559,896 Net Loss for August
----------------------------------------------------

                         Almatis B.V.
                        Balance Sheet
                    As of August 31, 2010

ASSETS
Current Assets
Unrestricted cash & cash equivalents               $7,795,929
Restricted cash & cash equivalents                    609,862
Accounts receivable (net)                         127,340,911
Notes receivable                                            0
Inventories                                        11,722,817
Prepaid expenses                                    1,904,584
Professional retainers                                289,000
Other current assets                                6,363,125
                                               --------------
Total current assets                             156,026,231

Real property & improvements                       23,964,394
Machinery & equipment                              20,787,570
Furniture, fixtures & office equipment                647,863
Leasehold improvements                                      0
Vehicles                                                    0
Less: Accumulated depreciation                    (18,043,109)
                                               --------------
Total property & equipment                         27,356,719

Other Assets
Amounts due from insiders                                   0
Other assets                                      870,930,774
Total other assets                                898,287,493
Total assets                                    1,054,313,725

LIABILITIES & OWNER EQUITY

Liabilities
Accounts payable                                    8,074,265
Taxes payable                                           7,577
Wages payable                                               0
Notes payable                                               0
Secured debt/adequate protection payments         582,399,109
Professional fees                                   5,196,000
Amounts due to insiders                                     0
Other liabilities                                 133,562,338
                                               --------------
Total liabilities                                 729,239,291

Liabilities subject to compromise (prepetition)
Secured debt                                      571,738,710
Priority debt                                               -
Unsecured debt                                    126,196,903
                                               --------------
Total prepetition liabilities                     697,935,614

OWNERS' EQUITY
Capital stock                                          22,844
Additional paid-in capital                        326,387,919
Profit/loss carried forward prior years            37,311,259
Retained earnings -- prepetition                   (8,038,474)
Retained earnings -- postpetition                 (13,188,869)
Foreign currency translation reserve              (17,420,246)
Postpetition contributions                                  -
                                               --------------
Net Owners' Equity                                325,074,434
                                               --------------
Total liabilities and owners' equity           $1,054,313,725
                                               ==============

                         Almatis B.V.
                    Statement of Operations
               For the period August 1 to 31, 2010

Gross revenues                                    $14,916,590
Less: Returns & allowances                                  -
                                               --------------
Net revenue                                        14,916,590

Cost of goods sold
Beginning inventory                                10,027,479
Add: Purchase + changes in inventory                9,047,846
Add: Cost of labor                                    626,951
Add: Other costs                                    4,124,402
Less: Ending inventory                             11,722,817
Cost of goods sold                                 12,103,863
                                               --------------
Gross profit                                        2,812,727

Operating expenses
Advertising                                                 -
Auto & truck expense                                    8,344
Bad debts                                                   -
Contributions                                           5,462
Employee benefits programs                             59,501
Officer/insider payments                              137,751
Insurance                                               4,479
Management fees/bonuses                                     -
Office expense                                         24,968
Pension & profit-sharing plans                         27,467
Repairs & maintenance                                  10,216
Rent & lease expense                                   (6,818)
Salary/commission/fees (excl. insider payment)          8,706
Supplies                                                1,077
Taxes -- payroll                                           56
Taxes -- real estate                                        -
Taxes -- other                                            638
Travel & entertainment                                  5,253
Utilities                                               4,225
Other                                               6,357,134
                                               --------------
Total operating expenses including depreciation     6,648,467
Depreciation/depletion/amortization                   291,057
                                               --------------
Net profit (loss) before other income, expenses    (4,126,798)

Other Income & Expenses
Other income                                         (387,248)
Interest expense                                    2,792,084
Other expense                                         109,781
                                               --------------
Net profit (loss) before taxes                     (6,641,414)
                                               --------------
Net profit (loss)                                 ($6,559,896)
                                               ==============

                         Almatis B.V.
          Schedule of Cash Receipts and Disbursements
               For the period August 1 to 31, 2010

Cash, beginning of month                          $20,783,000

Receipts:
Accounts Receivable - Prepetition                          0
Accounts Receivable - Postpetition                         0
Others                                               341,000
                                               --------------
Total Receipts                                       341,000

Disbursements:
Accounts Payable                                  (4,139,000)
Feedstock                                        (11,389,000)
Net Payroll                                         (421,000)
Payroll Taxes                                       (299,000)
Sales, Use & Other Taxes                                   0
Other                                               (259,000)
                                               --------------
Total Disbursements                              (16,506,000)

Total Balance Internal Payments                    3,784,000
Balance FX Transactions                                    0

Net Cash Flow                                    (12,381,000)
                                               --------------
Cash, End of Month                                $8,402,000
                                               ==============

                       About Almatis Group

Almatis B.V., operationally headquartered in Frankfurt, Germany,
is a global leader in the development, manufacture and supply of
premium specialty alumina products.  With nearly 900 employees
worldwide, the company's products are used in a wide variety of
industries, including steel production, cement production, non-
ferrous metal production, plastics, paper, ceramics, carpet
manufacturing and electronic industries.  Almatis operates nine
production facilities worldwide and serves customers around the
world.  Until 2004, the business was known as the chemical
business of Alcoa.  Almatis is now owned by Dubai International
Capital LLC, the international investment arm of Dubai Holding.

Almatis B.V., and its affiliates filed for Chapter 11 on April 30,
2010 (Bankr. S.D.N.Y. Lead Case No. 10-12308).  Almatis B.V.
estimated assets of US$500 million to US$1 billion and debts of
more than US$1 billion in its petition.

Michael A. Rosenthal, Esq., at Gibson, Dunn & Crutcher LLP, serves
as counsel to the Debtors in the Chapter 11 cases.  Linklaters LLP
is the special English and German counsel and De Brauw Blackstone
Westbroek N.V. is Dutch counsel.  Epiq Bankruptcy Solutions, LLC,
serves as claims and notice agent.

Bankruptcy Creditors' Service, Inc., publishes Almatis Bankruptcy
News.  The newsletter tracks the Chapter 11 proceeding and
ancillary foreign proceedings undertaken by Almatis B.V., and its
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


GARLOCK SEALING: Had $13.3 Mil. Accounts Receivable at End of July
------------------------------------------------------------------
Garlock Sealing Technologies LLC, Garrison Litigation Management
Group, Ltd., and The Anchor Packing Company submitted to the Court
their operating reports for the July 4 to 31, 2010 period.

Garlock disclosed that per agreement with Linda W. Simpson, U.S.
Bankruptcy Administrator for the Western District of North
Carolina, certain information are presented in a modified or
abridged format.

The Debtors note that for the reporting period, they paid these
amounts in Salary, Wage and Commission Payments:

Garlock Sealing               $2,592,703
Garrison Litigation             $111,735
Anchor Packing                        $0

Garlock reported that as of July 31, 2010, it had $13,301,313, in
account receivables.  Meanwhile, Garrison Litigation and Anchor
Packing disclosed $0 account receivables for the July 4 to 31,
2010 period.

Full-text copies of Garlock Sealing's, Garrison's and Anchor
Packing's reports are available for free at:

  http://bankrupt.com/misc/Garlock_Jul4to31MOR.pdf
  http://bankrupt.com/misc/GarrisonJul4to31MOR.pdf
  http://bankrupt.com/misc/AnchorPackingJul4to31MOR.pdf

                      About Garlock Sealing

Headquartered in Palmyra, NY, Garlock Sealing Technologies LLC is
an EnPro Industries, Inc. company (NYSE: NPO).  For more than a
century, Garlock has been helping customers efficiently seal the
toughest process fluids in the most demanding applications.

On June 5, Garlock filed a voluntary Chapter 11 petition (Bankr.
W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina, to
establish a trust to resolve all current and future asbestos
claims against Garlock under Section 524(g) of the U.S. Bankruptcy
Code.  The Debtor estimated $500 million to $1 billion in assets
and up to $500 million in debts as of the Petition Date.
Affiliates The Anchor Packing Company and Garrison Litigation
Management Group, Ltd., also filed for bankruptcy.

The filing covers only Garlock operations in Palmyra, New York and
Houston, Texas.  Garlock Rubber Technologies, Garlock Helicoflex,
Pikotek, Technetics, Garlock Europe and Garlock operations in
Canada, Mexico or Australia are not affected by the filing, nor is
EnPro Industries or any other EnPro operating subsidiary.

Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor in its Chapter 11 effort.  Garland S.
Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel
for Asbestos matters.

Bankruptcy Creditors' Service, Inc., publishes Garlock Sealing
Bankruptcy News.  The newsletter tracks the chapter 11 proceeding
undertaken by Garlock Sealing Technologies LLC and its various
affiliates.  (http://bankrupt.com/newsstand/or 215/945-7000)


GREEKTOWN HOLDINGS: Reports $125,827,063 Profit for June
--------------------------------------------------------

                    Greektown Holdings, LLC
                         Balance Sheet
                       As of June 30, 2010

Assets
Cash                                                       $-
Inventory
Accounts receivable
Insider Receivables                                         -

Property and Equipment
Land and buildings                                          -
Furniture, fixtures and equipment                           -

Other Assets
Financing Fees                                              -
Notes receivables from affiliates                 362,605,010
Investments in affiliate                          302,799,102
                                                --------------
Total Assets                                      $665,404,112
                                                ==============

Liabilities and Stockholder's Equity
Postpetition liabilities:
Accounts payable                                           $-
Rent and lease payable                                      -
Wages and salaries                                          -
Taxes payable                                               -
Other                                                       -
                                                --------------
Total postpetition liabilities                              -

Secured liabilities subject to postpetition
collateral or financing order                                -
All other secured liabilities                      362,605,010
                                                --------------
Total secured liabilities                         362,605,010

Prepetition liabilities:
Taxes and other priority liabilities                        -
Unsecured liabilities                                       -
Discount on bonds                                           -
                                                --------------
Total prepetition liabilities                               -

Kewadin equity                                               -
Monroe equity                                                -
Owner's capital                                              -
Retained earnings prepetition                                -
Retained earnings postpetition                               -
Greektown Superholdings                            151,399,551
Greektown NewCo Sub                                151,399,551
                                                --------------
Total stockholders' equity                        302,799,102
                                                --------------
Total liabilities                                 362,605,010
                                                --------------
Total Liabilities & Shareholders' Deficit         $665,404,112
                                                ==============

                    Greektown Holdings, LLC
                       Income Statement
                For the month ended June 30, 2010

Total revenue/sales                                         $0
Cost of sales                                                0
                                                --------------
Gross profit                                                 0

Operating Expenses
Interest expense                                    1,657,292
Accounting fees - credit                                    0
                                                --------------
Total expenses                                      1,657,292

Net operating profit/(loss)
Add:  Non-operating income                                   0
     Interest income                                         0
     Other income                                            0

Less: Non-operating expenses:
     Professional fees                            (127,484,354)
     Other                                                   0
                                                --------------
Net Income (Loss)                                 $125,827,063
                                                ==============

                    Greektown Holdings, LLC
                      Cash Flow Statement
                For the month ended June 30, 2010

Cash - beginning of month                                  N/A

Receipts                                                    -
Balance available                                           -
                                                --------------
Less disbursements                                          -
                                                --------------
Cash - end of month                                         $-
                                                ==============

                      Greektown Casino LLC
                         Balance Sheet
                      As of June 30, 2010

Assets
Cash                                              $13,595,444
Inventory                                             413,281
Accounts receivable                                 2,988,313
Insider Receivables                                         -

Property and Equipment
Land and buildings                                298,481,938
Furniture, fixtures and equipment                  41,071,901
Accumulated depreciation                                    -
Other current                                      20,999,488
Other long term                                   337,806,290
                                                --------------
Total Assets                                      $715,356,654
                                                ==============

Liabilities and Stockholder's Equity
Postpetition liabilities:
Accounts payable                                  $24,697,563
Accrued Expenses                                   15,206,126
Notes payable                                         976,706
Rent and lease payable                              2,522,032
Wages and salaries                                  1,952,247
Taxes payable                                         655,837
Other                                                 221,924
                                                --------------
Total postpetition liabilities                     46,232,436

Secured liabilities subject to postpetition
collateral or financing order                                -
All other secured liabilities                      362,605,010
                                                --------------
Total secured liabilities                         362,605,010

Prepetition liabilities:
Taxes and other priority liabilities                        -
Unsecured liabilities                                       -
Other                                               3,720,109
                                                --------------
Total prepetition liabilities                       3,720,109

Equity                                            302,799,100
Owner's capital                                             -
Retained earnings prepetition                               -
Retained earnings postpetition                              -
                                                --------------
Total shareholders' equity                        302,799,100
                                                --------------
Total liabilities                                 412,557,555
                                                --------------
Total Liabilities & Shareholders' Equity          $715,356,655
                                                ==============


                      Greektown Casino LLC
                        Income Statement
                For the month ended June 30, 2010

Total revenue/sales                                $28,953,498
Cost of sales                                        3,752,595
                                                --------------
Gross profit                                        25,200,903

Operating Expenses
Officer compensation                                   42,582
Salary expenses, other employees                    4,963,495
Employees benefits & pensions                       2,244,513
Payroll taxes                                         631,870
Other taxes                                           625,406
Rent and lease expense                                  7,989
Interest expense                                    4,954,878
Insurance                                             212,946
Automobile & truck expense                                  -
Utilities                                             580,685
Depreciation                                        1,798,563
Travel and entertainment                                8,317
Repairs and maintenance                                85,325
Advertising                                           786,700
Supplies, office expense, etc.                         30,431
Gaming taxes                                        5,746,105
G&A expenses                                        4,203,938
F&B expenses                                          886,169
MGCB Fee                                              852,778
Parking/other                                               -
Pre-opening expenses                                        -
Impairment of intangible assets                             -
                                                --------------
Total expenses                                     28,662,686

Net operating profit (loss)                        (3,461,783)
Add: Non-operating income:
     Interest income                                         -
     Other income                                            -

Less: Non-operating expenses
      Professional fees                           (185,404,450)
      Other                                                  -
      Other - MBT(Benefit)/Expense                   1,374,561
                                                --------------
Net Income (Loss)                                ($180,568,105)
                                                ==============

                      Greektown Casino LLC
                       Cash Flow Statement
                For the month ended June 30, 2010

Cash - beginning of month                          $18,241,785

Receipts                                          585,506,766
Balance available                                 603,748,551
                                                --------------
Less disbursements                                601,984,835
                                                --------------
Cash - end of month                                 $1,763,716
                                                ==============

                     About Greektown Casino

Based in Detroit, Michigan, Greektown Holdings, LLC, and its
affiliates -- http://www.greektowncasino.com/-- operate world-
class casino gaming facilities located in Detroit's historic
Greektown district featuring more than 75,000 square feet of
casino gaming space with more than 2,400 slot machines, over 70
tables games, a 12,500-square foot salon dedicated to high limit
gaming and the largest live poker room in the metropolitan Detroit
gaming market.

The Company and seven of its affiliates filed for Chapter 11
protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No.
08-53104).  Daniel J. Weiner, Esq., Michael E. Baum, Esq., and
Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the
Debtors in their restructuring efforts.  Judy B. Calton, Esq., at
Honigman Miller Schwartz and Cohn LLP, represents the Debtors as
their special counsel.  The Debtors chose Conway MacKenzie &
Dunleavy as their financial advisor, and Kurtzman Carson
Consultants LLC as claims, noticing, and balloting agent.  Clark
Hill PLC serves as counsel to the Official Committee of Unsecured
Creditors.

The Joint Plan of Reorganization for Greektown Holdings LLC and
five of its debtor affiliates proposed by certain noteholder
entities, the Official Committee of Unsecured Creditors of the
Debtors, and Deutsche Bank Trust Company Americas, as indenture
trustee, was declared effective on June 30, 2010.  Greektown
Casino Hotel clinched its way to the June 30 finish line when it
obtained a unanimous approval from the Michigan Gaming Control
Board on June 28, 2010, of the transfer of the Company's ownership
from the Sault Ste. Marie Tribe of Chippewa Indian to new
investors.


LEHMAN BROTHERS: Has $19.8 Billion Cash at August 31
----------------------------------------------------
Lehman Brothers Holdings Inc. disclosed these cash receipts and
disbursements of the company, its affiliated debtors and other
controlled entities for the month ended August 31, 2010:

Beginning Cash & Investments (8/1/10)   $19,268,000,000
Total Sources of Cash                     1,849,000,000
Total Uses of Cash                       (1,316,000,000)
FX Fluctuation                               (2,000,000)
                                         ---------------
Ending Cash & Investments (8/31/10)     $19,803,000,000

LBHI reported $1.994 billion in cash and investments as of
August 1, 2010, and $2.358 billion as of August 31, 2010.

The monthly operating report also showed that from September 15,
2008 to August 31, 2010, a total of $961.296 million was paid to
professionals including ordinary course professionals employed by
the Debtors, the Official Committee of Unsecured Creditors, the
Chapter 11 examiner and the Fee Examiner.  Of the amount,
$342.429 million was paid to Alvarez & Marsal LLC, the Debtors'
turnaround manager, while $220.857 million was paid to Weil
Gotshal & Manges LLP, the Debtors' lead bankruptcy counsel.

A full-text copy of the August 2010 Operating Report is available
for free at http://bankrupt.com/misc/LehmanMORAug2010.pdf

                       About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

                 International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


MESA AIR: Reports $201,478,000 Net Loss for August
--------------------------------------------------

                  Mesa Air Group, Inc., et al.
              Condensed Consolidated Balance Sheet
                     As of August 31, 2010

                             ASSETS

Current Assets
Cash and cash equivalents                         $58,207,000
Short-term investments                              1,478,000
Restricted investments                             10,351,000
Receivables, net of allowance                      19,458,000
Inventories, net of allowance                      26,840,000
Prepaid expenses and other assets                 111,230,000
                                                --------------
Total current assets                               227,565,000

Property and equipment, net                        515,264,000
Security and other deposits                          7,329,000
Other assets                                       431,586,000
                                                --------------
TOTAL ASSETS                                    $1,181,745,000
                                                ==============

              LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities Not Subject to Compromise:
Current Liabilities
Accounts payable                                   $3,638,000
Air traffic liability                               4,653,000
Other accrued expenses                             54,587,000
Income tax payable                                  2,217,000
Deferred revenue & other current liabilities                0
                                                --------------
Total current liabilities not subject to            65,095,000
compromise

Deferred credits and other liabilities             95,672,000
Long-term deferred income tax                     156,719,000
Other long-term debt postpetition                           0
                                                --------------
Total liabilities not subject to compromise        252,391,000

Liabilities subject to compromise               1,269,227,000
                                                --------------
Total Liabilities                                1,586,713,000

Stockholders' Equity
Preferred stock, no par value, authorized                   0
   2,000,000 shares, none issued
Common stock, no par value and additional         118,676,000
   paid-in capital, 900,000,000 shares
   authorized; 175,217,249 and 175,217,249
   shares issued and outstanding, respectively
Deferred stock compensation                         1,634,000
Retained earnings                                (525,279,000)
                                                --------------
Total shareholders' equity                        (404,968,000)
                                                --------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY        $1,181,745,000
                                                ==============

                  Mesa Air Group, Inc., et al.
         Condensed Consolidated Statement of Operations
               For the Month Ended August 31, 2010

Revenues
Passenger                                         $65,145,000
Cargo                                                       0
Other                                                 406,000
                                                --------------
Total revenue                                       65,551,000
                                                --------------

Operating Expenses
Flight operations                                  16,942,000
Flight operations - nonoperating aircraft           1,068,000
Aircraft fuel                                      18,643,000
Aircraft and traffic servicing                      4,008,000
Maintenance                                        12,508,000
Promotion and sales                                   449,000
General and administrative                          3,501,000
Depreciation and amortization                       3,160,000
impairment of long-lived asset                              0
                                                --------------
Total operating expenses                            60,279,000

Operating Income (Loss)                              5,272,000

Nonoperating Income (Expense)
Interest income                                       370,000
Interest expense                                     (567,000)
Other, net                                           (469,000)
                                                --------------
Total nonoperating income (expense)                   (666,000)

Income (Loss) before reorganization items and        4,605,000
Income Taxes

Income Taxes                                     (116,776,000)
Loss (Gain) on reorganization items               322,859,000

Income (Loss) before discontinued operations      (201,478,000)

Loss (Gain) from discontinued operations                    0
                                                --------------
NET INCOME (LOSS)                                ($201,478,000)
                                                ==============

                  Mesa Air Group, Inc., et al.
         Condensed Consolidated Statement of Cash Flows
               For the Month Ended August 31, 2010

Cash Flows from Operating Activities:
Net income (loss) from continuing operations     ($201,478,000)
Net income (loss) from discontinued operations               0
                                                --------------
Net income (loss)                                 (201,478,000)

Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization                       3,160,000
Impairment charges                                          0
Amortization of deferred credits                     (870,000)
Amortization of restricted stock awards               (23,000)
Amortization of contract incentive payments            27,000
Provisions for obsolete expendable parts              477,000
   and supplies
Changes in operating assets and liabilities:
Net (purchase) sales of investment securities         (73,000)
Receivables                                        (1,496,000)
Expendable parts and supplies                         555,000
Prepaid expenses and other assets                  20,894,000
Other assets                                          690,000
Accounts payable                                      456,000
Income taxes payable                             (117,413,000)
Air traffic liability                                       0
Other accrued liabilities                         343,235,000
                                                --------------
Net cash provided by (used in) operating            48,142,000
activities

Cash Flows from Reorganization Activities:
Net cash provided by (used in) reorganization    (322,877,000)
   activities
                                                --------------
Total net cash provided by (used in) operating    (274,735,000)
activities

Cash Flows from Investing Activities:
Capital expenditures                                1,762,000
Proceeds from sale of flight equipment and                  0
   expendable inventory
Change in restricted cash                             774,000
Equity method investment                              128,000
Investment deposits                                         0
Change in other assets                                156,000
Net returns (payments) of lease and equipment         599,000
   deposits
                                                --------------
Net cash (used in) provided by investing             3,419,000
activities

Cash Flows from Financing Activities:
Unsecured claims for rejected aircraft            279,150,000
Principal payments on long-term borrowings         (2,902,000)
                                                --------------
Net cash (used in) provided by financing           276,248,000
activities

Increase (decrease) in cash and cash                 4,932,000
equivalents
Cash and cash equivalents at beginning of           53,275,000
period
                                                --------------
Cash and cash equivalents at end of period         $58,207,000
                                                ==============

                     About Mesa Air Group

Mesa currently operates 130 aircraft with approximately 700 daily
system departures to 127 cities, 41 states, Canada, and Mexico.
Mesa operates as Delta Connection, US Airways Express and United
Express under contractual agreements with Delta Air Lines, US
Airways and United Airlines, respectively, and independently as
Mesa Airlines and go! Mokulele.  This operation links Honolulu to
the neighbor island airports of Hilo, Kahului, Kona and Lihue. The
Company, founded by Larry and Janie Risley in New Mexico in 1982,
has approximately 3,500 employees.

Mesa Air Group Inc. and its units filed their Chapter 11 petitions
Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing
assets of $976 million against debt totaling $869 million as of
Sept. 30, 2009.

Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at
Pachulski Stang Ziehl & Jones LLP, serve as local counsel.
Imperial Capital LLC is the investment banker.  Epiq Bankruptcy
Solutions is claims and notice agent.

Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy
News.  The newsletter tracks the Chapter 11 proceedings undertaken
by Mesa Air Group Inc. and its units.
(http://bankrupt.com/newsstand/or 215/945-7000).


NORTEL NETWORKS: Reports $45 Million Net Loss for June
------------------------------------------------------

                 Nortel Networks Inc., et al.
               Condensed Combined Balance Sheet
                     As of June 30, 2010
                        (Unaudited)
               (In millions of U.S. dollars)

                                       NNI  AltSystems   Other
                                     -----  ----------   -----
ASSETS
Current assets
Cash and cash equivalents              $863           -       -
Restricted cash and cash equivalents     26          $1       -
Accounts receivable, net                 44           -       -
Intercompany accounts receivables       287          47     ($6)
Inventories, net                         22           -       -
Other current assets                    145           -       -
Assets held for sale                     51           -       -
Assets of discontinued operations        20           -       -
                                      -----  ----------   -----
Total current assets                  1,458          48      (6)

Investments in non-Debtor
subsidiaries                            (1)          1      (1)
Investments, other                        -           -       -
Plant and equipment, net                 76           -       -
Goodwill                                  -           1       -
Other assets                            109           -       -
                                      -----  ----------   -----
Total assets                          1,642          50      (7)

LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities not subject to compromise
Trade and other accounts payables        38           -       -
Intercompany accounts payable            26          10      (6)
Payroll and benefit-related liabilities  33           -       -
Contractual liabilities                   2           -       -
Restructuring liabilities                 4           -       -
Other accrued liabilities                96           -       -
Income taxes                             15           -       -
Liabilities held for sale                 -           -       -
Liabilities of discontinued operations   24           -       -
                                      -----  ----------   -----
Total current liabilities not
subject to compromise                   238          10      (6)

Restructuring                             4           -       -
Deferred income and other credits         7           -       -
Post-employment benefits                  7           -       -
                                      -----  ----------   -----
Total liabilities not subject to
compromise                              256          10      (6)

Liabilities subject to compromise     5,583          54     127
Liabilities subject to compromise
of discontinued operations               84           -       -
                                      -----  ----------   -----
Total liabilities                     5,923          64     121

SHAREHOLDERS' DEFICIT
Common shares                             -         719      32
Preferred shares                          -          16      47
Additional paid-in capital           17,746       7,330   5,252
Accumulated deficit                 (22,007)     (8,079) (5,458)
Accumulated other comprehensive
income (loss)                          (20)          -      (1)
                                      -----  ----------   -----
Total U.S. Debtors shareholders'     (4,281)        (14)   (128)
deficit

Non-controlling interests                 -           -       -
                                      -----  ----------   -----
Total shareholders' deficit          (4,281)        (14)   (128)
                                      -----  ----------   -----
Total liabilities and
shareholders deficit                 $1,642         $50     ($7)
                                      =====  ==========   =====

                 Nortel Networks Inc., et al.
          Condensed Combined Statement of Operations
              For the Period June 1 to 30, 2010
                       (Unaudited)
              (In millions of U.S. dollars)

                                        NNI  AltSystems   Other
                                      -----  ----------   -----
Total revenues                          $12           -       -
Total cost of revenues                   17           -       -
                                      -----  ----------   -----
Gross profit                             (5)          -       -

Selling, general and admin expense      291           -       -
Research and development expense         (1)          -       -
Other operating expense (income), net   (19)          -       -
                                      -----  ----------   -----
Operating earnings (loss)              (276)          -       -
Other income (expense), net             291           -       -
                                      -----  ----------   -----
Earnings from continuing operations
before reorganization items, income
taxes and equity in net earnings
(loss) of associated companies          15           -       -

Reorganization items, net               (54)          -       -
                                      -----  ----------   -----
Earnings from continuing operations
before income taxes and equity
in net earnings (loss) of
associated companies                   (39)          -       -
Income tax benefit (expense)              3           -       -
                                      -----  ----------   -----
Earnings from continuing operations
before equity in net earnings
(loss) of associated companies         (36)          -       -
Equity in net earnings (loss) of
associated companies, net of tax         -           -       -
Equity in net earnings (loss) of
non-Debtor subsidiaries, net            (2)          -       -
                                      -----  ----------   -----
Net earnings (loss) from
continuing operations                  (38)          -       -
Net earnings (loss) from discontinued
Operations, net of tax                  (7)          -       -
                                      -----  ----------   -----
Net earnings (loss)                     (45)          -       -

Income attributable to
non-controlling interests                -           -       -
                                      -----  ----------   -----
Net earnings (loss) attributable
to U.S. Debtors                       ($45)          -       -
                                      =====  ==========   =====

                Nortel Networks Inc., et al.
          Condensed Combined Statement of Cash Flows
              For the Period June 1 to 30, 2010
                        (Unaudited)
                (In millions of U.S. dollars)

                                       NNI  AltSystems   Other
                                       ---  ----------   -----
Cash flows from (used in) operating
activities:
Net earnings (loss) attributable
to U.S. Debtors                      ($45)          -       -
Net loss (earnings) from
discontinued operations, net of tax     7           -       -

Adjustments to reconcile net loss
from continuing operations to
net cash from (used in) operating
activities, net of effects from
acquisitions and divestitures of
businesses:
Amortization and depreciation            2           -       -
Equity in net earnings of associated
companies                                2           -       -
Pension and other accruals              (1)          -       -
Reorganization items, non-cash          53           -       -
Other, net                              (2)          -       -
Change in operating assets
and liabilities                        (55)          -       -
                                      -----  ----------   -----
Net cash from (used in) operating
activities, continuing operations      (39)          -       -
Net cash from (used in) operating
activities, discontinued operations      -           -       -
                                      -----  ----------   -----
Net cash from (used in) operating
activities                             (39)          -       -

Cash flows from (used in) investing
activities:
Proceeds on sale of business
and investments                          1           -       -
                                      -----  ----------   -----
Net cash from (used in) invest
activities, continuing operations        1           -       -
Net cash from (used in) investing
activities, discontinued operations      -           -       -
                                      -----  ----------   -----
Net cash from (used in) investing
activities                               1           -       -

Cash flows from (used in) financing
activities:
Decrease in capital leases
obligations                             (1)          -       -
                                      -----  ----------   -----
Net cash from (used in) financing
activities, continuing operations       (1)          -       -

Net cash from (used in) financing
activities, discontinued operations      -           -       -
                                      -----  ----------   -----
Net cash from (used in) financing
activities                              (1)          -       -

Effect of foreign exchange rate
changes on cash and cash equivalents     -           -       -
                                      -----  ----------   -----
Net cash from (used in)
continuing operations                  (39)          -       -
Net cash from (used in)
discontinued operations                  -           -       -
                                      -----  ----------   -----
Net increase (decrease) in
cash & cash equivalents                (39)          -       -
                                      -----  ----------   -----
Cash and cash equivalents,
beginning of the period                902           -       -
                                      -----  ----------   -----
Cash and cash equivalents of
continuing operations, end            $863           -       -
                                      =====  ==========   =====

                       About Nortel Networks

Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers.  The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications.  Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.

The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164).  Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection.  The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986.  The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England.  Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.

Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.

As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion.  The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies.  As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.

Bankruptcy Creditors' Service, Inc., publishes Nortel Networks
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Nortel Networks
Corp. and its various affiliates.  (http://bankrupt.com/newsstand/
or 215/945-7000)


NORTEL NETWORKS: Reports $14 Million Net Loss for July
------------------------------------------------------

                Nortel Networks Inc., et al.
              Condensed Combined Balance Sheet
                    As of July 31, 2010
                        (Unaudited)
               (In millions of U.S. dollars)

                                       NNI  AltSystems   Other
                                     -----  ----------   -----
ASSETS
Current assets
Cash and cash equivalents              $885           -       -
Restricted cash and cash equivalents     25          $1       -
Accounts receivable, net                 19           -       -
Intercompany accounts receivables       279          47     ($6)
Inventories, net                         29           -       -
Other current assets                    111           -       -
Assets held for sale                     51           -       -
Assets of discontinued operations        19           -       -
                                      -----  ----------   -----
Total current assets                  1,418          48      (6)

Investments in non-Debtor
subsidiaries                            (1)          1      (1)
Plant and equipment, net                 75           -       -
Goodwill                                  -           1       -
Other assets                            109           -       -
                                      -----  ----------   -----
Total assets                          1,601          50      (7)

LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities not subject to compromise
Trade and other accounts payables        20           -       -
Intercompany accounts payable            24          10      (6)
Payroll and benefit-related liab.        40           -       -
Contractual liabilities                   2           -       -
Restructuring liabilities                 3           -       -
Other accrued liabilities                80           -       -
Income taxes                             16           -       -
Liabilities of discontinued
operations                              24           -       -
                                      -----  ----------   -----
Total current liabilities not
subject to compromise                   209          10      (6)

Restructuring                             4           -       -
Deferred income and other credits         7           -       -
Post-employment benefits                  7           -       -
                                      -----  ----------   -----
Total liabilities not subject to        227          10      (6)
compromise

Liabilities subject to compromise     5,586          54     127
Liabilities subject to compromise
of discontinued operations              83           -       -
                                      -----  ----------   -----
Total liabilities                     5,896          64     121

SHAREHOLDERS' DEFICIT
Common shares                             -         719      32
Preferred shares                          -          16      47
Additional paid-in capital           17,746       7,330   5,252
Accumulated deficit                 (22,021)     (8,079) (5,458)
Accumulated other comprehensive
income (loss)                          (20)          -      (1)
                                      -----  ----------   -----
Total U.S. Debtors shareholders'     (4,295)        (14)   (128)
deficit

Non-controlling interests                 -           -       -
                                      -----  ----------   -----
Total shareholders' deficit          (4,295)        (14)   (128)
                                      -----  ----------   -----
Total liabilities and
shareholders deficit                 $1,601         $50     ($7)
                                      =====  ==========   =====

                Nortel Networks Inc., et al.
          Condensed Combined Statement of Operations
              For the Period July 1 to 31, 2010
                        (Unaudited)
               (In millions of U.S. dollars)

                                        NNI   AltSystems   Other
                                        ---   ----------   -----
Total revenues                          $10           -       -
Total cost of revenues                   15           -       -
                                      -----  ----------   -----
Gross profit (loss)                      (5)          -       -

Selling, general and admin expense       18           -       -
Other operating expense
(income), net                          (22)          -       -
                                      -----  ----------   -----
Operating earnings (loss)                (1)          -       -
Other income (expense), net               2           -       -
                                      -----  ----------   -----
Earnings (loss) from continuing operations
before reorganization items, income
taxes and equity in net earnings
(loss) of associated companies           1           -       -

Reorganization items, net               (15)          -       -
                                      -----  ----------   -----
Earnings (loss) from continuing
operations before income taxes
and equity in net earnings
(loss) of associated companies         (14)          -       -
Income tax benefit (expense)              -           -       -
                                      -----  ----------   -----
Earnings (loss) from continuing
operations before equity in net
earnings (loss) of associated
companies                              (14)          -       -
Equity in net earnings (loss) of
associated companies, net of tax         -           -       -
Equity in net earnings (loss) of
non-Debtor subsidiaries, net             -           -       -
                                      -----  ----------   -----
Net earnings (loss) from
continuing operations                  (14)          -       -
Net earnings (loss) from
discontinued operations,
net of tax                               -           -       -
                                      -----  ----------   -----
Net earnings (loss)                     (14)          -       -

Income attributable to
non-controlling interests                -           -       -
                                      -----  ----------   -----
Net earnings (loss) attributable
to U.S. Debtors                       ($14)          -       -
                                      =====  ==========   =====

                Nortel Networks Inc., et al.
         Condensed Combined Statement of Cash Flows
             For the Period July 1 to 31, 2010
                       (Unaudited)
               (In millions of U.S. dollars)

                                       NNI  AltSystems   Other
                                       ---  ----------   -----
Cash flows from (used in) operating
activities:
Net earnings (loss) attributable
to U.S. Debtors                      ($14)          -       -
Net loss (earnings) from
discontinued operations,
net of tax                              -           -       -

Adjustments to reconcile net loss
from continuing operations to
net cash from (used in) operating
activities, net of effects from
acquisitions and divestitures of
businesses:
Amortization and depreciation            2           -       -
Pension and other accruals               3           -       -
Reorganization items - noncash          (6)          -       -
Other, net                              (1)          -       -
Change in operating assets
and liabilities                         37           -       -
                                      -----  ----------   -----
Net cash from (used in) operating
activities, continuing operations       21           -       -
Net cash from (used in) operating
activities, discontinued operations      -           -       -
                                      -----  ----------   -----
Net cash from (used in) operating
activities                              21           -       -

Cash flows from (used in) investing
activities:
Change in restricted cash and
cash equivalents                         1           -       -
                                      -----  ----------   -----
Net cash from (used in) investing
activities, continuing operations        1           -       -
Net cash from (used in) investing
activities, discontinued operations      -           -       -
                                      -----  ----------   -----
Net cash from (used in) investing
activities                               1           -       -

Cash flows from (used in) financing
activities:
Net cash from (used in) financing
activities, continuing operations        -           -       -
Net cash from (used in) financing
activities, discontinued operations      -           -       -
                                      -----  ----------   -----
Net cash from (used in) financing
activities                               -           -       -

Effect of foreign exchange rate
changes on cash and cash equivalents      -           -       -
                                      -----  ----------   -----
Net cash from (used in)
continuing operations                    22           -       -
Net cash from (used in)
discontinued operations                   -           -       -
                                      -----  ----------   -----
Net increase (decrease) in
cash & cash equivalents                  22           -       -
                                      -----  ----------   -----
Cash and cash equivalents,
beginning of the period                 863           -       -
                                      -----  ----------   -----
Cash and cash equivalents of
continuing operations, end             $885           -       -
                                      =====  ==========   =====

                       About Nortel Networks

Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/--
delivers communications capabilities that make the promise of
Business Made Simple a reality for the Company's customers.  The
Company's next-generation technologies, for both service provider
and enterprise networks, support multimedia and business-critical
applications.  Nortel's technologies are designed to help
eliminate the barriers to efficiency, speed and performance by
simplifying networks and connecting people to the information they
need, when they need it.

Nortel Networks Corp., Nortel Networks Inc., and other affiliated
corporations in Canada sought insolvency protection under the
Companies' Creditors Arrangement Act in the Ontario Superior Court
of Justice (Commercial List).  Ernst & Young was appointed to
serve as monitor and foreign representative of the Canadian Nortel
Group.

The Monitor sought recognition of the CCAA Proceedings in the U.S.
by filing a bankruptcy petition under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 09-10164).  Mary Caloway,
Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney
PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's
counsel.

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions on January 14, 2009 (Bankr. D. Del. Case No. 09-10138).
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection.  The Nortel Companies related in
a press release that Nortel Networks UK Limited and certain
subsidiaries of the Nortel group incorporated in the EMEA region
have each obtained an administration order from the English High
Court of Justice under the Insolvency Act 1986.  The applications
were made by the EMEA Subsidiaries under the provisions of the
European Union's Council Regulation (EC) No. 1346/2000 on
Insolvency Proceedings and on the basis that each EMEA
Subsidiary's centre of main interests is in England.  Under the
terms of the orders, representatives of Ernst & Young LLP have
been appointed as administrators of each of the EMEA Companies and
will continue to manage the EMEA Companies and operate their
businesses under the jurisdiction of the English Court and in
accordance with the applicable provisions of the Insolvency Act.

Several entities, particularly, Nortel Government Solutions
Incorporated have material operations and are not part of the
bankruptcy proceedings.

As of September 30, 2008, Nortel Networks Corp. reported
consolidated assets of US$11.6 billion and consolidated
liabilities of US$11.8 billion.  The Nortel Companies' U.S.
businesses are primarily conducted through Nortel Networks Inc.,
which is the parent of majority of the U.S. Nortel Companies.  As
of September 30, 2008, NNI had assets of about US$9 billion and
liabilities of US$3.2 billion, which do not include NNI's
guarantee of some or all of the Nortel Companies' about
US$4.2 billion of unsecured public debt.

Bankruptcy Creditors' Service, Inc., publishes Nortel Networks
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
and ancillary foreign proceedings undertaken by Nortel Networks
Corp. and its various affiliates.  (http://bankrupt.com/newsstand/
or 215/945-7000)


WASHINGTON MUTUAL: Has $4,548,425,932 Cash at End of July
---------------------------------------------------------

                   WASHINGTON MUTUAL, INC.
                   Unaudited Balance Sheet
                     As of July 31, 2010

ASSETS
Unrestricted cash and cash equivalent          $4,548,425,932
Restricted cash and cash equivalents               91,753,400
Investment securities                              71,651,239
Accrued interest receivable                           907,110
Income tax receivable                             475,866,091
Prepaid expenses                                    4,116,594
Cash surrender value of BOLI/COLI                  44,284,220
Funded Pension                                     39,173,922
Other investments                                           -
Investment in subsidiaries                      1,482,509,485
Notes receivable, intercompany                     12,841,929
Fixed assets                                          187,824
Other assets                                       96,719,483
                                              ----------------
Total Assets                                    $6,868,437,230
                                              ================

LIABILITIES NOT SUBJECT TO COMPROMISE
Accounts payable                                   12,339,133
Accrued wages and benefits                            924,784
Other accrued liabilities                          11,932,066
Minority interest                                   1,114,476
                                              ----------------
Total Postpetition Liabilities                     26,310,459

LIABILITIES SUBJECT TO COMPROMISE
Senior debt                                     4,132,421,622
Subordinated debt                               1,666,464,970
Junior subordinated debt                          765,674,200
Intercompany payables                             684,095,259
Accounts payable                                    4,530,720
Taxes payable                                     550,769,514
Payroll and benefit accruals                      386,847,225
Other accrued liabilities                          76,325,795
Other prepetition liabilities                             198
                                              ----------------
Total Prepetition Liabilities                   8,267,129,501
                                              ----------------
Total Liabilities                               8,293,439,960

SHAREHOLDERS' EQUITY
Preferred stock                                 3,392,341,954
Common stock                                   12,988,753,556
Other comprehensive income                       (754,256,981)
Retained earnings - prepetition               (16,742,191,966)
Retained earnings - postpetition                 (309,649,293)
                                              ----------------
Total Shareholders' Equity                     (1,425,002,730)
                                              ----------------
Total Liabilities and Shareholders' Equity      $6,868,437,230
                                              ================

                   WASHINGTON MUTUAL, INC.
              Unaudited Statement of Operations
           For the period July 1 to July 31, 2010

REVENUES
Interest income:
Cash equivalents                                     $753,768
Securities                                            236,380
Notes receivable - intercompany                        46,916
Other                                                     150
                                              ----------------
Total Interest Income                               1,037,213

Earnings (losses) from subsidiaries and
other equity investments                           (2,972,972)
Gains (losses) from securities/investments              9,323
Other income                                          142,572
                                              ----------------
Total Revenues                                     (1,783,863)

OPERATING EXPENSES
Compensation and benefits                             401,997
Occupancy and equipment                                84,692
Professional fees                                     570,014
Loss/(Income) from BOLI/COLI policies                (109,729)
Management fees/transition services                         -
Insurance                                             225,000
Other                                                 110,877
                                              ----------------
Total Operating Expenses                            1,282,850

Net profit (loss) before other income
and expenses                                       (3,066,713)

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

Other expense/(income)                                      -
                                              ----------------
Net profit (loss) before
reorganization items                               (3,066,713)

REORGANIZATION ITEMS
Professional fees                                   7,011,606
Claims adjustments                                     50,000
U.S. Trustee quarterly fees                            13,000
Gains (losses) from sale of assets                          -
Other reorganization expenses                       1,172,268
                                              ----------------
Total Reorganization Items                          8,246,874

Net profit (loss) before income taxes              (11,313,587)
                                              ----------------
Income taxes                                                 -
                                              ----------------
NET PROFIT (LOSS)                                 ($11,313,587)
                                              ================

                 WASHINGTON MUTUAL, INC.
  Unaudited Schedule of Cash Receipts and Disbursements
         For the period July 1 to July 31, 2010

Opening Balance 06/30/10                        $3,968,247,369

RECEIPTS
Interest & investment returns                       2,162,449
Tax refunds                                            23,731
Reimbursements/distributions from subs                      -
Sales of assets/securities                            382,316
Other miscellaneous receipts                           28,396
                                              ----------------
Total Receipts                                       2,596,893

TRANSFERS
Sweep to/(from) Money Market account                        -
Sweep (to)from Wells Managed account                        -
                                              ----------------
Total Transfers                                              -

DISBURSEMENTS
Salaries and benefits                                 299,700
Travel and other expenses                              13,690
Occupancy and supplies                                128,440
Professional fees                                   6,188,040
Other outside services                              4,124,041
Bank fees                                              26,305
U.S. trustee quarterly fees                                 -
Directors fees                                         60,000
Taxes paid                                              3,187
                                              ----------------
Total Disbursements                                 10,843,404
                                              ----------------
Net Cash Flow                                       (8,246,511)
                                              ----------------
Cash - End of Month                              3,960,000,858

GL Balance                                       3,960,000,857

Net value -- Short Term Securities                 588,425,075
                                              ----------------
Total Cash and Cash Equivalents                 $4,548,425,932
                                              ================

                     WMI INVESTMENT CORP.
                    Unaudited Balance Sheet
                     As of July 31, 2010

ASSETS
Unrestricted cash and cash equivalents           $275,607,323
Restricted cash and cash equivalents                        -
Investment Securities                                       -
Accrued interest receivable                             4,997
Income tax receivable                              22,187,560
Prepaid expenses                                            -
Cash surrender value of BOLI/COLI                           -
Funded Pension                                              -
Other investments                                  57,794,529
Investment in subsidiaries                                  -
Notes receivable, intercompany                    565,844,197
Fixed Assets                                                -
Other assets                                                -
                                              ----------------
Total Assets                                      $921,438,606
                                              ================

LIABILITIES NOT SUBJECT TO COMPROMISE
Accounts payable                                            -
Accrued wages and benefits                                  -
Other accrued liabilities                             $15,150
Minority interest                                           -
                                              ----------------
Total Postpetition Liabilities                         15,150

LIABILITIES NOT SUBJECT TO COMPROMISE
Senior debt                                                 -
Subordinated debt                                           -
Junior subordinated debt                                    -
Intercompany payables                                       -
Accounts payable                                            -
Taxes payable                                               -
Payroll and benefit accruals                                -
Other accrued liabilities                                   -
Other prepetition liabilities                               -
                                              ----------------
Total Prepetition Liabilities                               -
                                              ----------------
Total Liabilities                                      15,150

SHAREHOLDERS' EQUITY
Preferred stock                                             -
Common stock                                    1,000,000,000
Other comprehensive income                         22,187,560
Retained earnings - prepetition                    14,133,260
Retained earnings - postpetition                 (114,897,364)
                                              ----------------
Total Shareholders' Equity                        921,423,456
                                              ----------------
Total Liabilities and Shareholders' Equity        $921,438,606
                                              ================

                     WMI INVESTMENT CORP.
              Unaudited Statement of Operations
             For the period July 1 to July 31, 2010

REVENUES
Interest income:
Cash equivalents                                      $43,441
Securities                                                  -
Notes receivable - intercompany                             -
Other                                                       -
                                              ----------------
Total Interest Income                                  43,441

Earnings (losses) from subsidiaries and
other equity investments                              (41,563)
Gains (losses) from securities/investments                179
Other income                                                -
                                              ----------------
Total Revenues                                          2,058

OPERATING EXPENSES
Compensation and benefits                                   -
Occupancy and equipment                                     -
Professional fees                                           -
Loss/(Income) from BOLI/COLI policies                       -
Management fees/transition services                         -
Insurance                                                   -
Other                                                  14,572
                                              ----------------
Total Operating Expenses                               14,572

Net profit (loss) before other income
and expenses                                          (12,515)

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

Other expense/(income)                                      -
                                              ----------------
Net profit (loss) before
reorganization items                                  (12,515)

REORGANIZATION ITEMS
Professional fees                                           -
Claims adjustments                                          -
U.S. Trustee quarterly fees                               325
Gains (losses) from sale of assets                          -
Other reorganization expenses                               -
                                              ----------------
Total Reorganization Items                                325
                                              ----------------
Net profit (loss) before income taxes                  (12,840)

Income taxes                                                 -
                                              ----------------
NET PROFIT (LOSS)                                     ($12,840)
                                              ================

                   WMI INVESTMENT CORP.
  Unaudited Schedule of Cash Receipts and Disbursements
          For the period July 1 to July 31, 2010

Opening Balance 06/30/10                           $53,841,024

RECEIPTS
Interest & investment returns                          26,612
Tax refunds                                                 -
Reimbursements/distributions from subs                      -
Sales of assets/securities                                  -
Other miscellaneous receipts                                -
                                              ----------------
Total Receipts                                          26,612

TRANSFERS
Sweep to/(from) Money Market account                        -
Sweep (to) from Wells Managed account                       -
                                              ----------------
Total Transfers                                              -

DISBURSEMENTS
Salaries and benefits                                       -
Travel and other expenses                                   -
Occupancy and supplies                                      -
Professional fees                                           -
Other outside services                                      -
Bank fees                                                  74
U.S. trustee quarterly fees                                 -
Directors fees                                              -
Taxes paid                                                  -
                                              ----------------
Total Disbursements                                         74
                                              ----------------
Net Cash Flow                                           26,539
                                              ----------------
Cash - End of Month                                 53,867,562
                                              ----------------
GL Balance                                          53,867,562
                                              ----------------
Net value -- Short Term Securities                 221,739,761
                                              ----------------
Total Cash and Cash Equivalents                   $275,607,323
                                              ================

WaMu Chief Financial Officer John Maciel disclosed that as of
July 31, 2010, the Debtors paid these firms an aggregate of
approximately $6,188,039 on account of services rendered in their
cases:

Professional                              Fees        Expenses
------------                              ---------   ---------
Akin, Gump, Strauss, Hauer & Feld          $630,432     $14,984
Alvarez & Marsal                          2,142,508      95,745
Ashby & Geddes, P.A.                              -           -
Blackstone Advisory Partners LLP                  -           -
CONSOR Intellectual Asset Management              -           -
CP Energy Group, LLC                              -           -
Davis Wright Tremaine LLP                         -           -
Elliot Greenleaf                              9,074       1,266
FTI Consulting, Inc.                              -           -
Gibson, Dunn & Crutcher LLP                  38,195       1,312
Grant Thornton                               13,892       2,571
Joele Frank, Wilkinson Brimmer Katcher        4,512         334
John W. Wolfe, P.S.                         177,511       1,817
Kurtzman Carson Consultants LLC             131,024     509,085
McKee Nelson LLP/Bingham McCutchen LLP       65,826       9,877
Miller & Chevalier Chartered                 56,809       1,336
Milliman                                          -           -
Pepper Hamilton LLP                         105,462       9,041
Perkins Coie LLP                            306,896      20,722
Peter J. Solomon Company                    365,000           -
PricewaterhouseCoopers LLP                        -           -
Quinn Emanuel Urquhart Oliver & Hedges      899,365      50,633
Richards, Layton & Finger P.A.              159,278      29,754
Shearman & Sterling LLP                      29,196           6
Silverstein & Pomerantz, LLP                      -           -
Simpson Thacher & Bartlett LLP               22,534       1,426
Susman Godfrey LLP                          260,286       4,788
Towers Watson Pennsylvania Inc.              15,527           -
Venable LLP                                       -           -
Weil, Gotshal & Manges LLP                        -           -

As of July 31, 2010, WaMu paid a total of $12,339,132 to 25
vendors for certain postpetition accounts.

According to Mr. Maciel, for the period from July 1 to 31, 2010,
WaMu did not file property tax returns; sales and use tax
returns; and corporate income or franchise taxes.  Payroll taxes
were filed during the Reporting Period.

A full-text copy of WaMu's July 2010 Operating Report is
available for free at:

         http://bankrupt.com/misc/WaMu_MORJuly2010.pdf

                      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 September 25 by U.S.
government regulators.  The next day, WaMu and its 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 estimated assets of
$500,000,000 to $1,000,000,000 with zero debts.

Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel
Urquhart Oliver & Hedges, LLP, served as legal counsel to WMI with
responsibility for the litigation.  Brian Rosen, Esq., at Weil,
Gotshal & Manges LLP served as legal counsel to WMI with
responsibility for the Chapter 11 case.

Bankruptcy Creditors' Service Inc. publishes Washington Mutual
Bankruptcy News.  The newsletter tracks the Chapter 11 proceedings
of Washington Mutual Inc. (http://bankrupt.com/newsstand/or
215/945-7000).

                           *********

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

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR.  Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts.  The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

The Sunday TCR delivers securitization rating news from the week
then-ending.

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

                           *********

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

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors" Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard
C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez,
Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R.
Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G.
Patalinghug, and Peter A. Chapman, Editors.

Copyright 2010.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each.  For subscription information, contact Christopher
Beard at 240/629-3300.


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