/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/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. 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For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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. 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