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T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, November 6, 2004, Vol. 8, No. 243
Headlines
DII/KBR: Posts $271.7 Million September 2004 Net Loss
DII/KBR: Mid-Valley's Sept. 2004 Monthly Operating Report
DII/KBR: Kellog Brown & Root Earns $11.2 Million in Sept. 2004
DII/KBR: KBR Technical Posts $918,000 Net Loss in September 2004
DII/KBR: KBR Engineering's September 2004 Monthly Operating Report
DII/KBR: KBR International Posts $7.1 Mil. Sept. 2004 Net Income
DII/KBR: KBR (Panama)'s September 2004 Monthly Operating Report
DII/KBR: BPM Minerals Posts $1.2 Million Earnings in Sept. 2004
DII/KBR: Halliburton Posts $44 Million Third Quarter 2004 Net Loss
DIVINE INC: Releases September 2004 Monthly Operating Reports
DVI INC: Releases Sept. 2004 Cash Receipts & Disbursements Data
FOOTSTAR INC: September 2004 Net Loss Narrows to $3.1 Million
HAUSER INC: Submits September 2004 Monthly Operating Report
KUSHNER-LOCKE: Files November 2003 Monthly Operating Reports
KUSHNER-LOCKE: Files December 2003 Monthly Operating Reports
KUSHNER-LOCKE: Files January 2004 Monthly Operating Reports
KUSHNER-LOCKE: Files February 2004 Monthly Operating Reports
KUSHNER-LOCKE: Files March 2004 Monthly Operating Reports
KUSHNER-LOCKE: Files April 2004 Monthly Operating Reports
KUSHNER-LOCKE: Files May 2004 Monthly Operating Reports
KUSHNER-LOCKE: Files June 2004 Monthly Operating Reports
KUSHNER-LOCKE: Files July 2004 Monthly Operating Reports
KUSHNER-LOCKE: Files August 2004 Monthly Operating Reports
NEWPOWER HOLDINGS: Files September 2004 Monthly Operating Report
OWENS CORNING: Reports $13.95 Million Net Loss in June 2004
UAL CORP: Posts $221.8 Million Net Loss in September 2004
WORLDCOM INC: Third Quarter Net Loss Widens to $3.4 Billion
*********
DII/KBR: Posts $271.7 Million September 2004 Net Loss
-----------------------------------------------------
DII Industries, LLC
Unaudited Balance Sheet
As of September 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $26,341
Escrow - prepetition payments 143,913
Investment account with Parent 665,000
Trade receivables -
Unbilled work on incomplete contracts -
Other receivables -
Inventories -
Right to Halliburton Shares 1,992,298
Insurance for asbestos & silica-related PI claims 873,072
Other current assets 412,840
----------
Total current assets 4,113,464
Net property, plant and equipment -
Investments in consolidated subsidiaries 1,853,929
Equity in related companies -
Intercompany with related companies (1,192,807)
Goodwill, net -
Non-current deferred income taxes 345,000
Insurance for asbestos & silica-related PI claims 487,889
Other assets 11
----------
Total assets $5,607,486
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
DIP Financing -
Current maturities of long-term debt -
Accounts payable $1,394
Accrued employee compensation and benefits 1
Accrued interest payable 8,185
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims 2,418,028
Other current liabilities 9,912
----------
Total current liabilities 2,437,520
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims 2,028,948
Minority interest in consolidated subsidiaries -
Other liabilities 6,095
----------
Total liabilities 4,472,563
Total shareholder's equity 1,134,923
----------
Total liabilities and shareholder's equity $5,607,486
==========
DII Industries, LLC
Unaudited Income Statement
Month ended September 30, 2004
(in thousands)
Revenues -
Operating costs and expenses $80
----------
Operating income/(loss) (80)
Interest expense -
Interest income 5,887
Foreign currency gains (losses) (7)
Other non-operating income - net -
Equity in earnings/(loss) of subsidiaries (62,825)
----------
Income/(loss) before taxes & minority interest (57,025)
Income tax benefit/(provision) (1,599)
----------
Income/(loss) from continuing operations (58,624)
----------
Income/(loss) from discontinued operations (213,100)
----------
Net Income/(loss) ($271,724)
==========
DII/KBR: Mid-Valley's Sept. 2004 Monthly Operating Report
---------------------------------------------------------
Mid-Valley, Inc.
Unaudited Balance Sheet
As of September 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents -
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables -
Inventories -
Other current assets -
----------
Total current assets -
Net property, plant and equipment -
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies -
Intercompany with Parent $40,328
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets 558
----------
Total assets $40,886
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable -
Accrued employee compensation and benefits -
Accrued interest payable -
Advanced billings on uncompleted contracts $308
Asbestos and silica-related PI claims -
Other current liabilities 1,583
----------
Total current liabilities 1,891
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities 671
----------
Total liabilities 2,562
Total shareholder's equity 38,324
----------
Total liabilities and shareholder's equity $40,886
==========
Mid-Valley, Inc., reports no income for September 2004.
DII/KBR: Kellog Brown & Root Earns $11.2 Million in Sept. 2004
--------------------------------------------------------------
Kellogg Brown & Root, Inc.
Unaudited Balance Sheet
As of September 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents ($33,267)
Escrow - prepetition payments -
Trade receivables 108,367
Unbilled work on uncompleted contracts 131,470
Other receivables 30,058
Inventories 14,634
Other current assets 38,002
----------
Total current assets 289,264
Net property, plant and equipment 59,001
Investments in consolidated subsidiaries 248,679
Equity in related companies 55,534
Intercompany with related companies (29,150)
Intercompany with Parent 722,158
Goodwill, net 171,213
Non-current deferred income taxes 255,000
Insurance for asbestos & silica-related PI claims -
Right to Halliburton shares -
Other assets 55,659
----------
Total assets $1,827,358
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $253,330
Accrued employee compensation and benefits 52,646
Accrued interest payable -
Advanced billings on uncompleted contracts 222,208
Asbestos and silica-related PI claims 74,337
Other current liabilities 304,650
----------
Total current liabilities 907,171
Long-term debt -
Employee compensation and benefits 54,377
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities 85,452
----------
Total liabilities 1,047,000
Total shareholder's equity 780,358
----------
Total liabilities and shareholder's equity $1,827,358
==========
Kellogg Brown & Root, Inc.
Unaudited Income Statement
Month ended September 30, 2004
(in thousands)
Revenues $86,991
Operating costs and expenses 63,504
----------
Operating income 23,487
Interest expense (3,703)
Interest income 179
Foreign currency gains (losses) 3,410
Other non-operating income - net -
----------
Income before taxes and minority interest 23,373
Income tax benefit/(provision) (12,207)
----------
Income from continuing operations 11,166
Loss from discontinued operations -
----------
Net Income $11,166
==========
DII/KBR: KBR Technical Posts $918,000 Net Loss in September 2004
----------------------------------------------------------------
KBR Technical Services, Inc.
Unaudited Balance Sheet
As of September 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $312
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables 301
Inventories -
Other current assets 886
----------
Total current assets 1,499
Net property, plant and equipment 25,213
Investments in consolidated subsidiaries 1,555
Equity in related companies -
Intercompany with related companies 7,724
Intercompany with Parent -
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $35,991
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $221
Accrued employee compensation and benefits 20,546
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities 790
----------
Total current liabilities 21,557
Long-term debt -
Employee compensation and benefits 2,479
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 24,036
Total shareholder's equity 11,955
----------
Total liabilities and shareholder's equity $35,991
==========
KBR Technical Services, Inc.
Unaudited Income Statement
Month ended September 30, 2004
(in thousands)
Revenues -
Operating costs and expenses $781
----------
Operating income/(loss) (781)
Interest expense (137)
Interest income -
Foreign currency gains (losses) -
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest (918)
Income tax benefit -
----------
Net Income/(loss) ($918)
==========
DII/KBR: KBR Engineering's September 2004 Monthly Operating Report
------------------------------------------------------------------
KBR Engineering Corp.
Unaudited Balance Sheet
As of September 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents -
Escrow - prepetition payments -
Trade receivables -
Unbilled work on uncompleted contracts -
Other receivables -
Inventories -
Other current assets -
----------
Total current assets -
Net property, plant and equipment -
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies $77
Intercompany with Parent -
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $77
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable -
Accrued employee compensation and benefits -
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities -
----------
Total current liabilities -
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities -
Total shareholder's equity $77
----------
Total liabilities and shareholder's equity $77
==========
KBR Engineering Corp. reports no income for September 2004.
DII/KBR: KBR International Posts $7.1 Mil. Sept. 2004 Net Income
----------------------------------------------------------------
KBR International, Inc.
Unaudited Balance Sheet
As of September 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $38,211
Escrow - prepetition payments -
Trade receivables 19,401
Unbilled work on uncompleted contracts 17,844
Other receivables 21,080
Inventories -
Other current assets 3,794
----------
Total current assets 100,330
Net property, plant and equipment 291
Investments in consolidated subsidiaries 28,159
Equity in related companies 303
Intercompany with related companies -
Intercompany with Parent (44,507)
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets 638
----------
Total assets $85,214
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $12,210
Accrued employee compensation and benefits 254
Accrued interest payable -
Advanced billings on uncompleted contracts 10,716
Asbestos and silica-related PI claims -
Other current liabilities 10,725
----------
Total current liabilities 33,905
Long-term debt -
Employee compensation and benefits 490
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities 357
----------
Total liabilities 34,752
Total shareholder's equity 50,462
----------
Total liabilities and shareholder's equity $85,214
==========
KBR International, Inc.
Unaudited Income Statement
Month ended September 30, 2004
(in thousands)
Revenues $19,760
Operating costs and expenses 11,855
----------
Operating income/(loss) 7,905
Interest expense -
Interest income 287
Foreign currency gains (losses) 64
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest 8,256
Income tax benefit/(provision) (1,057)
----------
Net Income/(loss) $7,199
==========
DII/KBR: KBR (Panama)'s September 2004 Monthly Operating Report
---------------------------------------------------------------
KBR International, Inc. (Panama)
Unaudited Balance Sheet
As of September 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents $35,232
Escrow - prepetition payments -
Trade receivables 6,663
Unbilled work on uncompleted contracts 1,562
Other receivables 372
Inventories -
Other current assets 6,535
----------
Total current assets 50,364
Net property, plant and equipment 975
Investments in consolidated subsidiaries 23,865
Equity in related companies -
Intercompany with related companies -
Intercompany with Parent (41,869)
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets 37
----------
Total assets $33,372
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $1,571
Accrued employee compensation and benefits 3,069
Accrued interest payable -
Advanced billings on uncompleted contracts 862
Asbestos and silica-related PI claims -
Other current liabilities (734)
----------
Total current liabilities 4,768
Long-term debt -
Employee compensation and benefits 640
Asbestos and silica-related PI claims -
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 5,408
Total shareholder's equity 27,964
----------
Total liabilities and shareholder's equity $33,372
==========
KBR International, Inc. (Panama)
Unaudited Income Statement
Month ended September 30, 2004
(in thousands)
Revenues $1,457
Operating costs and expenses (568)
----------
Operating income/(loss) 2,025
Interest expense (27)
Interest income 2
Foreign currency gains (losses) 575
Other non-operating income - net -
----------
Income/(loss) before taxes & minority interest 2,575
Income tax benefit/(provision) -
----------
Net Income/(loss) $2,575
==========
DII/KBR: BPM Minerals Posts $1.2 Million Earnings in Sept. 2004
---------------------------------------------------------------
BPM Minerals, LLC
Unaudited Balance Sheet
As of September 30, 2004
(in thousands)
Assets
Current Assets:
Cash and equivalents ($203)
Escrow - prepetition payments -
Trade receivables 7,559
Unbilled work on uncompleted contracts -
Other receivables 4,279
Inventories 5,829
Other current assets -
----------
Total current assets 17,465
Net property, plant and equipment 8,858
Investments in consolidated subsidiaries -
Equity in related companies -
Intercompany with related companies -
Intercompany with Parent 44,373
Goodwill, net -
Non-current deferred income taxes -
Insurance for asbestos and silica-related PI claims -
Right to Halliburton shares -
Other assets -
----------
Total assets $70,697
==========
Liabilities and Shareholder's Equity
Current Liabilities:
Short-term notes payable -
Current maturities of long-term debt -
Accounts payable $1,115
Accrued employee compensation and benefits 270
Accrued interest payable -
Advanced billings on uncompleted contracts -
Asbestos and silica-related PI claims -
Other current liabilities 114
----------
Total current liabilities 1,498
Long-term debt -
Employee compensation and benefits -
Asbestos and silica-related PI claims 42,000
Minority interest in consolidated subsidiaries -
Other liabilities -
----------
Total liabilities 43,498
Total shareholder's equity 27,198
----------
Total liabilities and shareholder's equity $70,697
==========
BPM Minerals, LLC
Unaudited Income Statement
Month ended September 30, 2004
(in thousands)
Revenues $7,597
Operating costs and expenses 6,315
----------
Operating income 1,282
Interest expense -
Interest income -
Foreign currency gains (losses) -
Other non-operating income - net -
----------
Income before taxes and minority interest 1,282
Provision for income tax -
----------
Net Income $1,282
==========
DII/KBR: Halliburton Posts $44 Million Third Quarter 2004 Net Loss
------------------------------------------------------------------
Halliburton (NYSE:HAL) reported that third quarter 2004 income
from continuing operations was $186 million.
Net loss for the quarter was $44 million, and included a net loss
from discontinued operations primarily for the proposed asbestos
and silica settlement of $230 million. The net loss from
discontinued operations resulted primarily from the third quarter
revaluation, due to the increase in Halliburton's stock price, of
the 59.5 million shares of Halliburton common stock to be
contributed to trusts for the benefit of asbestos and silica
claimants.
Revenues were $4.8 billion in the third quarter 2004, up 16% from
the third quarter 2003. This increase was largely attributable to
higher activity on government services projects in the Middle East
in the Engineering and Construction Group (known as KBR) and
record quarterly revenues in the Energy Services Group (ESG).
The consolidated pretax operating income was $342 million in the
third quarter 2004 compared to $204 million in the third quarter
2003. Impacting third quarter 2004 operating income was a $40
million gain related to the sale of ESG's Surface Well Testing
operation and $18 million of charges related to the restructuring
of KBR. Third quarter 2003 results included a $77 million charge
related to the Anglo-Dutch litigation.
"ESG had record quarterly revenue, operating income, and operating
margins," said Dave Lesar, chairman, president and chief executive
officer of Halliburton. "We continue to see revenue growth and
profit improvement in the energy services business. The rig count
continues to increase, while our uplift in pricing, coupled with
our focus on cost control, are providing stronger margins.
"Also, I am pleased with the progress of KBR's recent actions.
KBR has sailed the Barracuda and Belanak FPSO vessels,
restructured its organization to take costs out of the business,
and resolved issues with customers on a number of projects.
These efforts should position KBR for profitability in future
years."
KBR Third Quarter Results
KBR revenues for the third quarter 2004 were $2.7 billion, a 15%
increase over the third quarter 2003. The increase was due to
government contract activities, primarily in the Middle East.
KBR operating loss for the third quarter 2004 was $50 million,
compared to operating income of $49 million in the third quarter
2003. The third quarter 2004 operating loss included $70 million
of project losses on a gas processing plant in Algeria, the
Belanak FPSO project, and a toll road project in the United
Kingdom; $18 million of charges related to the restructuring of
KBR; and lower results on government services projects due to the
winding down of the RIO project and higher indirect costs related
to the installation of KBR's new SAP general accounting system.
KBR backlog at September 30, 2004 was $9.3 billion, up nearly $500
million from June 30, 2004, primarily due to a new LNG train award
in Nigeria and new operation and maintenance projects.
Approximately 23% of the backlog was for fixed-fee contracts.
Halliburton's Iraq-related work contributed approximately $1.4
billion in revenues in the third quarter 2004 and $4 million of
operating income before corporate costs and taxes.
Technology and Significant Achievements
Halliburton had a number of advances in technology and new
contract awards.
Energy Services Group new technologies and contracts:
* Halliburton has been awarded three major contracts by
Petroleum Development Oman estimated to be between $400
and $500 million over five years to provide cementing
services, stimulation services, directional drilling
services, logging-while-drilling services, and mudlogging
services in Oman. Each contract includes an optional
extension for two years.
* Halliburton has been awarded a three-year, $32 million,
data management contract by PetroChina Company Limited.
As part of the contract, Landmark Graphics will implement
a fully integrated, multi-tiered information management
system that will support the full data life cycle of
PetroChina's oil and gas data.
* ChevronTexaco expanded its relationship with Halliburton
for drilling operations in North America and selected
Halliburton as the vendor of choice for ChevronTexaco's
WellDECC (Well Design & Execution Collaboration Center).
This state-of-the-art technology will allow real-time
strategy for well planning, design, and monitoring.
* Halliburton's Baroid Product Service Line, in alliance
with National Oilwell, announced the launch of their first
major project in Mexico under the new Baroid/National
Oilwell Alliance to provide solids control and waste
management services and equipment at the rig site.
Further, the team was recently awarded a solids control and waste
management service and equipment contract in Bangladesh while
similar operations are already underway in the United States,
Venezuela, and Brazil.
* Halliburton has developed new technologies -
DeepReach(SM) coiled tubing service and DeepQuest(SM)
stimulation service -- designed to assist operators with
recovering harder-to-access reserves in deep water. In
some cases, these technologies will help operators perform
treatments on ultra deep wells that could not be performed
prior to the development of these technologies.
KBR new contract awards:
* Nigeria LNG Limited (NLNG) has awarded the engineering,
procurement, and construction contract for the NLNGSix
project at its existing liquefied natural gas facility to
a joint venture team, which includes KBR. The partners of
the equal joint venture team, known as TSKJ, include
Technip, Snamprogetti, KBR, and JGC Corporation. This is
the fourth project that TSKJ has contracted with NLNG.
* KBR has been awarded a basic design engineering package
for a new 360,000 ton/year ethylene plant capacity
expansion, which will be added to an existing 240,000
ton/year unit for a total capacity of 600,000 ton/year by
the Lanzhou Petrochemical Company, which operates
under the auspices of PetroChina. The facility will be
located in Lanzhou City, Gansu Province of the People's
Republic of China and will utilize KBR's proprietary
SCORE(TM) (Selective Cracking Optimum Recovery)
technology.
* KBR has been selected to continue providing private sector
construction and related services to the United States
Navy and other Department of Defense agencies and missions
worldwide under the competitively-awarded CONCAP
(construction capabilities) contract from the Naval
Facilities Engineering Command, Atlantic Division.
A full-text copy of Halliburton's Third Quarter 2004 Report is
available at:
http://sec.gov/Archives/edgar/data/45012/000004501204000294/halannounces3qresults.htm
Headquartered in Houston, Texas, DII Industries, LLC, is the
direct or indirect parent of BPM Minerals, LLC, Kellogg Brown &
Root, Inc., Mid-Valley, Inc., KBR Technical Services, Inc.,
Kellogg Brown & Root Engineering Corporation, Kellogg Brown & Root
International, Inc., (Delaware), and Kellogg Brown & Root
International, Inc., (Panama). KBR and its subsidiaries provide a
wide range of services to energy and industrial customers and
government entities in over 100 countries. DII has no business
operations. DII and its debtor-affiliates filed a prepackaged
chapter 11 petition on December 16, 2003 (Bankr. W.D. Pa. Case No.
02-12152). Jeffrey N. Rich, Esq., Michael G. Zanic, Esq., and
Eric T. Moser, Esq., at Kirkpatrick & Lockhart LLP, represent the
Debtors in their restructuring efforts. On June 30, 2004, the
Debtors listed $6.255 billion in total assets and $5.295 billion
in total liabilities. (DII & KBR Bankruptcy News, Issue No. 21;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
DIVINE INC: Releases September 2004 Monthly Operating Reports
-------------------------------------------------------------
On Oct. 18, 2004, divine, inc., (n/k/a Enivid, Inc.), released its
monthly operating reports for September 2004. divine provides
separate reports for its software, hosting, and corporate
businesses. divine also filed a monthly operating report
summarizing its disbursements and receipts for the same period.
divine's Software and Hosting business units' operating reports
show virtually no activity in September 2004 because these units
were sold in May 2003.
The Corporate segment reports no revenue and a $2,991,545.58 net
loss in September 2004. At Sept. 30, divine's balance sheet shows:
Current Assets $55,870,907.57
Total Assets 56,486,538.57
Total Prepetition Debts 25,939,512.00
Total Liabilities 29,704,171.28
Total Liabilities
and Shareholders' Equity $56,486,538.57
Full-text copies of divine inc.'s September 2004 Monthly Operating
Reports are available at no charge at:
Corporate:
http://www.sec.gov/Archives/edgar/data/1097516/000110465904019280/a04-7686_1ex99d3.htm
Software Unit:
http://www.sec.gov/Archives/edgar/data/1097516/000110465904033182/a04-12474_1ex99d1.htm
Hosting Unit:
http://www.sec.gov/Archives/edgar/data/1097516/000110465904033182/a04-12474_1ex99d2.htm
divine, Inc., an affiliate of RoweCom Inc., described itself as an
extended enterprise company, which serves to make the most of
customer, employee, partner, and market interactions, and through
a holistic blend of Technology, services, and hosting solutions,
assist its clients in extending their enterprise. The Company
filed for chapter 11 protection on February 25, 2003 (Bankr. Mass.
Case No. 03-11472). Richard E. Mikels, Esq., Kevin J. Walsh, Esq.,
Adrienne K. Walker, Esq., at Mintz, Levin, Cohn, Ferris, Glovsky
and Popeo and J. Douglas Bacon, Esq., Stephen R. Tetro, Esq., and
Adam R. Skilken, Esq., represent the Debtors in their chapter 11
cases. When the Debtors filed for protection from their creditors,
they listed $271,372,593 in total assets and $191,957,065 in total
debts.
DVI INC: Releases Sept. 2004 Cash Receipts & Disbursements Data
---------------------------------------------------------------
On October 28, 2004, DVI, DVI FS and DVI BC filed their
respective Monthly Operating Reports with the U.S. Bankruptcy
Court and the U.S. Trustee for the period from September 1, 2004
through September 30, 2004 showing:
Debtor Cash Receipts Cash Disbursements
------ ------------- ------------------
DVI $0 $0
DVI FS $5,786,000 ($5,405,000)
DVI BC $1,380,000 ($1,450,000)
Full-text copies of DVI's September 2004 Monthly Operating Report
are available at no charge at:
DVI Inc:
http://www.sec.gov/Archives/edgar/data/801550/000095012304012801/y02792exv99w1.txt
DVI Financial Services:
http://www.sec.gov/Archives/edgar/data/801550/000095012304012801/y02792exv99w2.txt
DVI Business Credit:
http://www.sec.gov/Archives/edgar/data/801550/000095012304012801/y02792exv99w3.txt
DVI, Inc., the parent company of DVI Financial Services, Inc.,
DVI Business Credit Corp., and DVI Financial Services, Inc.,
provides lease or loan financing to healthcare providers for the
acquisition or lease of sophisticated medical equipment. The
Company, along with its affiliates, filed for chapter 11
protection (Bankr. Del. Lead Case No.: 03-12656) on August 25,
2003 before the Honorable Mary F. Walrath. Bradford J. Sandler,
Esq., of Adelman Lavine Gold and Levin, PC, represents the debtors
in their restructuring efforts.
FOOTSTAR INC: September 2004 Net Loss Narrows to $3.1 Million
-------------------------------------------------------------
On October 29, 2004, Footstar, Inc. and its debtor-affiliates
filed with the U.S. Bankruptcy Court their monthly operating
report for the month of September 2004. The Debtors report a net
loss of $3.1 million in $67.8 million of net sales for September
2004. At October 2, 2004, Footstar, Inc.'s consolidated balance
sheet shows:
Total Current Assets $307,300,000
Total Assets 371,100,000
Current Liabilities 100,700,000
Total Liabilities Subject to Compromise 175,300,000
Shareholders' Equity $37,900,000
A full-text copy of Footstar, Inc.'s September 2004 Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1011308/000090951804000853/jd10-29ex_99.txt
On March 2, 2004, Footstar, Inc. and substantially all of its
subsidiaries filed voluntary petitions under Chapter 11 of title
11, United States Code in the United States Bankruptcy Court for
the Southern District of New York (Case No. 04-22350). The
Debtors remain in possession of their assets and properties, and
continue to operate their businesses and manage their properties
as debtors-in-possession pursuant to sections 1107(a) and 1108 of
the Bankruptcy Code.
HAUSER INC: Submits September 2004 Monthly Operating Report
-----------------------------------------------------------
Kenneth C. Cleveland, President and Chief Executive Officer for
Hauser, Inc., advises that on October 15, 2004, the Company and
its wholly owned subsidiaries filed their monthly operating report
for the month ended September 30, 2004, with the Office of the
United States Trustee pursuant to Bankruptcy Rule 2015 and the
Trustee's Financial Reporting Requirements for Chapter 11 Cases.
Citing Rule 202 of Regulation S-T and the Company's continuing
hardship exemption, Mr. Cleveland explains that it is impossible
to deliver an electronic copy of that financial report to the
Securities and Exchange Commission so the Company has manually
filed a paper copy of the Amended Reports under cover of Form
SE.
Headquartered in El Segundo, California, Hauser Inc. supplies
herbal extracts and nutritional supplements and provides chemical
engineering services and contract research and development. The
Company and its debtor-affiliates filed for chapter 11 protection
on April 1, 2003, in Los Angeles (Bankr. C.D. Calif. Case No. 03-
18795). Christine M. Pajak, Esq., at Stutman, Treister & Glatt,
serves as legal counsel to the Debtors.
KUSHNER-LOCKE: Files November 2003 Monthly Operating Reports
------------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited November 2003 Monthly
Operating Reports.
For the month ending November 30, 2003, The Kushner-Locke
Company's Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 55,156
Total Non-Operating Expenses 13,611
Net Income (Loss) ($68,767)
For the period from November 1, 2003 through November 30, 2003,
The Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,293,051 $4,533
Total Receipts 12,839 105,200
Total Disbursements 104,000 68,767
Ending Balance $1,201,890 $40,966
Full-text copies of The Kushner-Locke Company's November 2003
Monthly Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w1.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w2.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files December 2003 Monthly Operating Reports
------------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited December 2003 Monthly
Operating Reports.
For the month ending December 31, 2003, The Kushner-Locke
Company's Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 71,490
Total Non-Operating Expenses 9,056
Net Income (Loss) ($80,546)
For the period from December 1, 2003 through December 31, 2003,
The Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,201,890 $40,966
Total Receipts 3,676 72,000
Total Disbursements 72,000 80,546
Ending Balance $1,133,566 $32,420
Full-text copies of The Kushner-Locke Company's December 2003
Monthly Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w3.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w4.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files January 2004 Monthly Operating Reports
-----------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited January 2004 Monthly
Operating Reports.
For the month ending January 31, 2004, The Kushner-Locke Company's
Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 66,504
Total Non-Operating Expenses 140,361
Net Income (Loss) ($206,866)
For the period from January 1, 2004 through January 31, 2004, The
Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,133,566 $32,420
Total Receipts 305,897 211,000
Total Disbursements 211,000 209,715
Ending Balance $1,228,463 $33,705
Full-text copies of The Kushner-Locke Company's January 2004
Monthly Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w5.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w6.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files February 2004 Monthly Operating Reports
------------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited February 2004 Monthly
Operating Reports.
For the month ending February 29, 2004, The Kushner-Locke
Company's Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 68,815
Total Non-Operating Expenses 8,443
Net Income (Loss) ($77,258)
For the period from February 1, 2004 through February 29, 2004,
The Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,228,463 $33,705
Total Receipts 667 79,000
Total Disbursements 79,000 77,258
Ending Balance $1,150,130 $35,447
Full-text copies of The Kushner-Locke Company's February 2004
Monthly Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w7.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w8.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files March 2004 Monthly Operating Reports
---------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited March 2004 Monthly Operating
Reports.
For the month ending March 31, 2004, The Kushner-Locke Company's
Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 91,928
Total Non-Operating Expenses 3,588
Net Income (Loss) ($88,340)
For the period from March 1, 2004 through March 31, 2004, The
Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,150,130 $35,447
Total Receipts 64,538 120,000
Total Disbursements 120,000 88,340
Ending Balance $1,094,668 $67,107
Full-text copies of The Kushner-Locke Company's March 2004 Monthly
Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w9.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w10.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files April 2004 Monthly Operating Reports
---------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited April 2004 Monthly Operating
Reports.
For the month ending April 30, 2004, The Kushner-Locke Company's
Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 53,752
Total Non-Operating Expenses 0
Net Income (Loss) ($53,752)
For the period from April 1, 2004 through April 30, 2004, The
Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,094,668 $67,107
Total Receipts 37,311 20,000
Total Disbursements 20,000 53,752
Ending Balance $1,111,979 $33,355
Full-text copies of The Kushner-Locke Company's April 2004 Monthly
Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w11.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w12.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files May 2004 Monthly Operating Reports
-------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited May 2004 Monthly Operating
Reports.
For the month ending May 31, 2004, The Kushner-Locke Company's
Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 91,326
Total Non-Operating Expenses 5,952
Net Income (Loss) ($97,278)
For the period from May 1, 2004 through May 31, 2004, The Kushner-
Locke Company's Cash Receipts and Disbursements Report shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,111,979 $33,355
Total Receipts 353,374 95,000
Total Disbursements 122,000 97,278
Ending Balance $1,343,353 $31,077
Full-text copies of The Kushner-Locke Company's May 2004 Monthly
Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w13.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w14.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files June 2004 Monthly Operating Reports
--------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited June 2004 Monthly Operating
Reports.
For the month ending June 30, 2004, The Kushner-Locke Company's
Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 59,690
Total Non-Operating Expenses 0
Net Income (Loss) ($59,690)
For the period from June 1, 2004 through June 30, 2004, The
Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,343,353 $31,077
Total Receipts 10,672 40,000
Total Disbursements 40,000 59,690
Ending Balance $1,314,025 $11,387
Full-text copies of The Kushner-Locke Company's June 2004 Monthly
Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w15.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w16.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files July 2004 Monthly Operating Reports
--------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited July 2004 Monthly Operating
Reports.
For the month ending July 31, 2004, The Kushner-Locke Company's
Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 81,128
Total Non-Operating Expenses 158,748
Net Income (Loss) ($239,876)
For the period from July 1, 2004 through July 31, 2004, The
Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,314,025 $11,387
Total Receipts 26,621 270,000
Total Disbursements 270,000 239,876
Ending Balance $1,070,646 $41,511
Full-text copies of The Kushner-Locke Company's July 2004 Monthly
Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w17.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w18.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
KUSHNER-LOCKE: Files August 2004 Monthly Operating Reports
----------------------------------------------------------
On October 28, 2004 The Kushner-Locke Company and its debtor-
affiliates filed with the U.S. Bankruptcy Court for the Central
District of California its unaudited August 2004 Monthly Operating
Reports.
For the month ending August 31, 2004, The Kushner-Locke Company's
Profit & Loss Statement shows:
Gross Profit $0
Total Operating Expenses 90,115
Total Non-Operating Expenses 288
Net Income (Loss) ($90,403)
For the period from August 1, 2004 through August 31, 2004, The
Kushner-Locke Company's Cash Receipts and Disbursements Report
shows:
Collateral Concentration
Account Account
---------- -------------
Beginning Balance $1,070,646 $41,511
Total Receipts 203,459 69,000
Total Disbursements 69,000 90,403
Ending Balance $1,205,105 $20,108
Full-text copy of The Kushner-Locke Company's August 2004 Monthly
Operating Reports are available at no charge at:
Profit & Loss Statement:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w19.txt
Cash Receipts and Disbursements Report:
http://www.sec.gov/Archives/edgar/data/842009/000095012904008270/v02814exv99w20.txt
Headquartered in Los Angeles, California, The Kushner-Locke
Company is a low-budget movie production studio. The Company
along with its debtor-affiliates filed for chapter 11 protection
on November 21, 2001 in the U.S. Bankruptcy Court for the Central
District of California. The cases are jointly administered under
case number 01-44828.
NEWPOWER HOLDINGS: Files September 2004 Monthly Operating Report
----------------------------------------------------------------
On October 27, 2004, NewPower Holdings, Inc., filed its September
2004 Monthly Operating Report with the U.S. Bankruptcy Court for
the Northern District of Georgia, Newnan Division. The company
reports an opening cash balance of $92,421,000 and a closing cash
balance of $92,407,000.
A full-text copy of NewPower Holdings' September 2004 Monthly
Operating Report is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1119307/000090514804004651/efc4-1915_5614193exh991.txt
The Company filed for chapter 11 protection on June 11, 2002
(Bankr. N.D. Ga. 02-10836). Paul K. Ferdinands, Esq., at King &
Spalding and William M. Goldman, Esq., at Sidley Austin Brown &
Wood LLP represent the Debtors. When the Debtors filed for
chapter 11 protection, it reported asset amounting to $231,837,000
and debts at $87,936,000.
On August 15, 2003, the United States Bankruptcy Court for the
Northern District of Georgia, Newnan Division, confirmed the
Second Amended Chapter 11 Plan with respect to NewPower Holdings,
Inc. and TNPC Holdings, Inc., a wholly owned subsidiary of the
Company. On February 28, 2003, the Bankruptcy Court previously
confirmed the Plan, and the Plan has been effective as of
March 11, 2003, with respect to The New Power Company, a wholly
owned subsidiary of the Company. The Plan became effective on
October 9, 2003 with respect to the Company and TNPC.
OWENS CORNING: Reports $13.95 Million Net Loss in June 2004
-----------------------------------------------------------
Owens Corning and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2004
(In Thousands)
Current Assets:
Cash and cash equivalents $591,233
Receivables 351,888
Receivables-Inter-company 978,816
Inventories 184,710
Insurance for Asbestos Litigation Claims 0
Deferred Income Taxes 484
Income Tax Receivable 6,538
Other Current Assets 26,855
-----------
Total Current Assets $2,140,524
Other Assets:
Insurance for Asbestos Litigation Claims 4,220
Restricted Cash 166,040
Restricted cash and securities 0
Deferred Income Taxes 1,084,315
Goodwill 48,568
Investment in Affiliates 27,039
Investment in Subsidiaries 2,022,050
Notes Receivable - Intercompany 5,270
Other Non-current Assets 336,285
-----------
Total Other Assets 3,693,787
Plant & Equipment:
Land 35,635
Buildings & Leasehold Improvements 550,724
Machinery & Equipment 2,163,550
Construction in Progress 75,700
Less: Accumulated Depreciation 1,525,774
-----------
Net Plant and Equipment 1,299,835
-----------
TOTAL ASSETS $7,134,146
===========
Liabilities not Subject to Compromise:
Accounts Payable & Accrued Liabilities 418,326
Inter-company Liabilities 759,077
Short-term debt 0
Long-term debt - current portion 1,914
-----------
Total Current Liabilities 1,179,317
Long-Term Debt 6,201
Other Employee Benefits Liability 197,531
Pension Plan Liability 580,453
Other Liability 139,382
-----------
Total Non-Current Liabilities 917,366
-----------
Total Postpetition Liabilities 2,102,884
Prepetition Liabilities:
Accounts Payable and Accrued Liabilities 359,308
Other Employee Benefits Liability 222,068
Pension Plan Liability 0
Debt-US Bank Credit Facility 1,450,821
Debt-Bonds & Other 1,440,783
Asbestos-Related Liability 2,731,188
Inter-company 2,519,808
Other 0
-----------
Total Prepetition Liabilities 8,723,976
Total Liabilities 10,826,860
Minority Interest 0
Stockholder's Equity:
Common Stock 696,004
Retained Earnings (Deficit) (4,051,708)
Accumulated Comprehensive Income (Loss) (5,939)
Other (331,071)
-----------
Net Stockholder's Equity (3,692,714)
-----------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $7,134,146
===========
Owens Corning and Subsidiaries
Consolidated Statements of Operations
For the Month Ended June 30, 2004
(In Thousands)
Net sales $338,234
Cost of Sales 278,130
-----------
Gross Margin 60,104
Operating Expenses:
Marketing and Administrative Expenses 28,677
Science and Technology Expenses 1,811
Provision for Asbestos Litigation Claims 0
Insider Compensation 926
Restructure Costs 0
Other Expenses 8,059
-----------
Income (Loss) from Operations 20,631
Other Expenses:
Cost of Borrowed Funds 131
Other 0
-----------
Income (Loss) Before Reorganization Items 20,500
Reorganization Items:
Professional Fees 3,084
U.S. Trustee Quarterly Fees 12
Interest Earned on Accumulated Cash (248)
(Gain) Loss from sale of equipment 0
(Gain) Loss from Settlement of Liabilities 0
Other Reorganization Expenses (1,127)
-----------
Total Reorganization Expenses 1,721
-----------
Income (Loss) Before Income Taxes 18,779
Provision (credit) for Income Tax 33,520
-----------
Income (Loss) Before Minority Interest and
Equity in Net Income (Loss) of Affiliates (14,741)
Minority interest 0
Equity in net income (loss) of affiliates 789
-----------
Net Income (Loss) ($13,952)
===========
Owens Corning and Subsidiaries
Consolidated Statements of Cash Receipts & Disbursements
For the Month Ended June 30, 2004
(In Thousands)
Cash, Beginning of Month $462,734
Receipts:
Customer Receipts 360,669
Inter-company Sales 5,333
Loans and Advances 0
Sale of Assets 0
Other Receipts 10,760
Inter-company Transfers 100,020
Transfers from DIP 232,657
-----------
Total Receipts $729,439
Disbursements:
Net Payroll 30,676
Payroll Taxes 0
Sales Use & Other Taxes 5,265
Inventory Purchases 113,245
Insurance 756
Administrative & Selling 51,302
Other 84,147
Inter-company Transfers 77,628
Transfers to DIP 232,657
Professional Fees 5,266
U.S. Trustee Quarterly Fees 0
Court costs 0
Adjustment 0
-----------
Total Disbursements 600,940
Net Cash Flow 128,499
-----------
Cash -- End of Month $591,233
===========
Headquartered in Toledo, Ohio, Owens Corning --
http://www.owenscorning.com/-- manufactures fiberglass
insulation, roofing materials, vinyl windows and siding, patio
doors, rain gutters and downspouts. The Company filed for chapter
11 protection on October 5, 2000 (Bankr. Del. Case. No. 00-03837).
Mark S. Chehi, Esq., at Skadden, Arps, Slate, Meagher & Flom
represents the Debtors in their restructuring efforts. At
June 30, 2004, the Company's balance sheet shows $7.3 billion in
assets and a $4.3 billion stockholders' deficit. (Owens Corning
Bankruptcy News, Issue No. 87; Bankruptcy Creditors' Service,
Inc., 215/945-7000)
UAL CORP: Posts $221.8 Million Net Loss in September 2004
---------------------------------------------------------
A full-text copy of UAL Corporation's September 2004 Operating
Report is available for free at the Securities and Exchange
Commission at:
http://www.sec.gov/Archives/edgar/data/100517/000010051704000036/octmor.htm
UAL Corporation and Subsidiary Companies
Condensed Consolidating Statement of Operations
For The Month Ended September 30, 2004
(In Thousands)
Total operating revenues $1,467,943
Total operating expenses 1,585,532
Earnings (loss) from operations (117,589)
Non-operating income (expenses):
Net interest expense (32,514)
Other income (expenses), net 17,708
----------
Total non-operating income (expenses) (14,806)
Net Earnings (loss) before Reorganization items (132,395)
Reorganization items (89,452)
----------
Net earnings (loss) ($221,847)
==========
Headquartered in Chicago, Illinois, UAL Corporation --
http://www.united.com/-- through United Air Lines, Inc., is the
holding company for United Airlines -- the world's second largest
air carrier. The Company filed for chapter 11 protection on
December 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M.
Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq.,
and Steven R. Kotarba, Esq., at Kirkland & Ellis, represent the
Debtors in their restructuring efforts. When the Debtors filed
for protection from their creditors, they listed $24,190,000,000
in assets and $22,787,000,000 in debts. (United Airlines
Bankruptcy News, Issue No. 64; Bankruptcy Creditors' Service,
Inc., 215/945-7000)
WORLDCOM INC: Third Quarter Net Loss Widens to $3.4 Billion
-----------------------------------------------------------
MCI, Inc. (NASDAQ: MCIP) reported its operating results for the
third quarter ended September 30, 2004.
Revenues in the quarter were $5.1 billion, a decline of three
percent versus second quarter 2004 and 15 percent versus
third quarter 2003.
Operating expenses declined significantly in the quarter,
reflecting the progress of MCI's cost reduction initiatives.
Access costs fell to $2.6 billion, down 14 percent from third
quarter 2003, while costs of products and services declined three
percent.
MCI's selling, general and administrative (SG&A) expenses were
$1.2 billion in the third quarter, five percent lower than
the second quarter 2004 and 24 percent lower than third quarter
2003.
Third quarter results include previously announced non-cash, pre-
tax impairment charges of $3.5 billion that reduced the carrying
value of intangible assets and property, plant and equipment. As
a result, MCI reported an operating loss of $3.4 billion for the
third quarter, compared to operating income of $77 million in
third quarter 2003. Excluding the impairment charges, the Company
would have realized operating income of $121 million.
The $3.5 billion in impairment charges reduced the carrying value
of assets to reflect the overall industry environment, including
recent regulatory decisions that impact the prospects for MCI's
consumer business.
Reported operating expenses also included severance of $12
million, and depreciation and amortization of $493 million, which
declined from $602 million a year earlier. Excluding the
impairment charges, operating income before depreciation,
amortization and loss on disposal of property would have been
$621 million in the third quarter, compared to $606 million in
second quarter 2004.
"Our continued emphasis on operational execution produced solid
improvements in the third quarter," said Michael D. Capellas, MCI
president and chief executive officer. "Going forward, our focus
will be on delivering next-generation IP-based products and
services, providing industry-leading service quality, and further
improving our cost structure."
During the quarter, MCI continued to deliver a steady stream of IP
product innovations. For example, the company increased
performance thresholds on its Internet service level agreements
(SLAs), launched next-generation Ethernet capabilities, and
rolled out its Managed Personal Firewall offering. The company
also announced that MCI Advantage is one of the industry's first
voice over Internet Protocol (VoIP) solutions to support 9-1-1
capabilities at fixed locations.
Company Results
($Millions) Quarter Ended
9/30/04 9/30/03
------- -------
Revenue 5,076 5,969
Costs of sales and services 3,209 3,635
SG&A 1,246 1,647
Depreciation/amortization 493 602
Loss on property dispositions 7 8
Impairment Charges 3,513 --
------- -------
Operating (loss) income (3,392) 77
Segment Results
MCI has organized its operations in three distinct business units
defined by their respective customer base: Enterprise Markets,
U.S. Sales & Service, and International & Wholesale Markets.
Following are the quarterly operating results of these business
segments:
Enterprise Markets
Enterprise Markets, which includes the company's most complex,
high-end accounts in business and government, provides
local-to-global business data, Internet, voice services and
managed network services.
($Millions) Quarter Ended
9/30/04 9/30/03
------- -------
Revenue 1,192 1,293
Costs of sales and services 719 779
SG&A 238 287
Depreciation/amortization 127 167
Loss on property dispositions 3 4
Impairment Charges 870 --
------- -------
Operating (loss) income (765) 56
In the third quarter, Enterprise Markets generated $1.2 billion of
revenue, which decreased by one percent sequentially, as volume
gains almost offset the effects of price compression. Revenue
declined eight percent compared to the third quarter of 2003. An
operating loss of $765 million was recorded, inclusive of an $870
million impairment charge. Exclusive of the impairment, operating
income would have been $105 million, up 24 percent sequentially
and 88 percent compared to the third quarter of 2003.
During the quarter, MCI completed several significant new
agreements with global accounts that included Allianz; Carlson
Companies, Inc.; IBM/Diageo; HP; Kuehne Nagle; Mattel; Nestle USA
and Pioneer.
For example, MCI in July completed a five-year $125 million
agreement to continue to provide HP with services that include
secure Internet remote access and enhanced contact center
services. MCI is also helping HP fulfill strategic outsourcing
needs for its business customers in North and South America
through its MCI Services unit.
IBM contracted with MCI to provide a managed Private IP network
solution for Diageo, linking its 281 locations in 53 countries.
MCI's ability to help Diageo move from a frame relay to a Private
IP environment, along with MCI's recent MPLS network expansion,
will enable Diageo to evolve and expand its existing wide area
network for the future.
U.S. Sales & Service (USS&S)
USS&S is comprised of Commercial Markets, which includes small,
medium and large business customers; Mass Markets, which includes
consumer and very small business customers; and Skytel.
($Millions) Quarter Ended
9/30/04 9/30/03
------- -------
Revenue 2,238 2,691
Costs of sales and services 1,184 1,394
SG&A 726 980
Depreciation/amortization 227 218
Loss on property dispositions 2 1
Impairment Charges 1,627 --
------- -------
Operating (loss) income (1,528) 98
In the third quarter, USS&S generated $2.2 billion of revenue, a
decline of three percent sequentially and 17 percent versus third
quarter 2003. Reflecting the impairment charges, the segment
reported an operating loss of $1.5 billion. Exclusive of the $1.6
billion impairment charge, operating income would have been $99
million, up 21 percent sequentially and up one percent versus
third quarter 2003.
Commercial Markets generated $960 million in revenue, a decline of
six percent sequentially and 15 percent versus third quarter 2003.
During the quarter, Commercial Markets won significant new
business, including agreements with Resun Leasing, O'Reilly
Automotive, Hilex Poly Co. and Quintiles Transnational to deliver
a wide range of IP-based solutions. Resun Leasing, for example,
entered into a new, three-year, multi-million dollar agreement
with MCI to replace their existing data and telecommunications
infrastructure on a single converged network. MCI will provide
Resun with Private IP and MCI Advantage to link their 32 site
operations while completely managing and monitoring the company's
network operations.
MCI customers continue to recognize the company's commitment to
customer satisfaction and recently honored it with a number of
awards. For example, the American Automobile Association (AAA)
recently presented MCI with its highest honor, the AAA Chairman's
Choice Award, for its Voice Portal solution, and Quintiles
Transnational, a leading healthcare services provider, presented
MCI with its STAR award for exemplary service delivery of key
voice and data services.
In the third quarter, Mass Markets generated revenue of $1.3
billion, a decline of one percent sequentially and 18 percent
versus third quarter 2003.
International & Wholesale Markets
MCI's International & Wholesale Markets segment serves Europe,
Middle East and Africa (EMEA), Latin-America, Asia-Pacific and
Wholesale.
($Millions) Quarter Ended
9/30/04 9/30/03
------- -------
Revenue 1,646 1,985
Costs of sales and services 1,306 1,462
SG&A 282 380
Depreciation/amortization 139 217
Loss on property dispositions 2 3
Impairment Charges 1,016 --
------- -------
Operating (loss) income (1,099) (77)
In the third quarter of 2004, International & Wholesale Markets
generated $1.6 billion of revenue, a decline of three percent
sequentially and 17 percent versus third quarter 2003.
The operating loss in the third quarter reflected impairment
charges of $1 billion. Exclusive of the impairment charges, the
operating loss would have been $83 million.
International generated $918 million of revenue, an increase of
six percent sequentially, reflecting volume gains that offset
price compression, as well as favorable foreign exchange.
Revenue declined two percent versus third quarter 2003. The
Company is shifting its focus in the EMEA region to acquiring
more pan-European and European-based global customers while de-
emphasizing its reliance on wholesale and local voice.
Wholesale generated $728 million of revenue, a decline of 12
percent sequentially and 31 percent versus third quarter 2003,
reflecting more selective participation in certain markets and
tighter credit controls which are expected to improve margins and
cash flow going forward.
Liquidity
On June 30, 2004, MCI's cash and cash equivalents totaled
$5.4 billion. During the third quarter the Company realized the
remaining $350 million from the sale of its Embratel affiliate,
paid approximately $129 million of bankruptcy claims, invested
$234 million for capital expenditures and returned a capital
distribution of $127 million to shareholders. On September 30,
2004, cash and cash equivalents totaled $5.6 billion.
Total debt of $5.9 billion included approximately $273 million of
capitalized leases. MCI issued $5.7 billion of Senior Notes on
April 20, 2004, which have not yet been rated by credit rating
agencies. The Company has initiated discussions with the rating
agencies and expects the process to be completed by the end of
2004.
MCI, Inc., and Subsidiaries
Unaudited Consolidated Balance Sheets
As of September 30, 2004
(in Millions)
Assets
Current Assets:
Cash and cash equivalents $5,588
Accounts receivable, net 2,972
Deferred taxes 964
Other current assets 718
Assets held for sale 33
--------
Total current assets 10,275
Property, plant & equipment, net 6,234
Intangible assets, net 1,076
Deferred taxes 1
Other assets 306
--------
Total Assets $17,892
========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $880
Accrued access costs 1,783
Current portion of long-term debt 35
Accrued interest 197
Other current liabilities 2,907
Liabilities of assets held for sale 28
--------
Total current liabilities 5,830
Long-term debt 5,903
Deferred taxes 1,096
Other liabilities 561
Minority interests --
Shareholders' equity:
MCI common stock 3
Additional paid-in capital 8,496
Deferred stock-based compensation (131)
Accumulated deficit (3,857)
Accumulated other comprehensive loss (9)
--------
Total shareholders' equity 4,502
--------
Total Liabilities & Stockholders' Equity $17,892
========
MCI, Inc., and Subsidiaries
Unaudited Consolidated Statements of Operations
Three-Month Period Ended September 30, 2004
(in Millions)
Revenues $5,076
Operating expenses
Access costs 2,580
Costs of services and products 629
Selling, general and administrative 1,246
Depreciation and amortization 493
Loss(gain) on property dispositions 7
Impairment charges related to property, plant and
equipment 2,775
Impairment charges related to intangible assets 738
--------
Total 8,468
Operating income (loss) (3,392)
Other income (expense), net:
Interest expense (104)
Miscellaneous income, net 35
--------
(Loss) from continuing operations before income taxes (3,461)
Income tax (benefit) expense (61)
--------
(Loss) from continuing operations (3,400)
Net income from discontinued operations 2
--------
Net income (loss) ($3,398)
========
MCI, Inc., and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
Nine-Month Period Ended September 30, 2004
(in Millions)
Operating Activities:
Net income (loss) ($3,857)
Adjustment to reconcile net income (loss) to net cash
Provided by operating activities:
Depreciation and amortization 1,583
Charges related to impairment of property, plant 3,513
Cumulative effects of changes in acctg. principles --
Minority interests, net of tax --
Net realized gain on sale of investments (5)
Bad debt provision 514
(Gain) loss on sale of property, plant & equipment (9)
Deferred tax provision (98)
Non-cash reorganization items --
Amortization of debt discount 114
Stock-based compensation expense 23
Loss (income) from equity investments 25
Other (60)
Changes in assets and liabilities:
Accounts receivable 300
Other current assets 92
Non current assets 38
Accounts payable and accrued access costs (787)
Other current liabilities (991)
Other liabilities 29
--------
Net cash provided by operating activities 424
Investing Activities:
Additions to property, plant & equipment (650)
Deposit on the sale of Embratel 39
Proceeds from sale of property, plant & equipment 581
Proceeds from sale of assets held for sale 9
Cash paid for acquisitions, net of cash received (13)
--------
Net cash used in investing activities (34)
Financing Activities:
Principal repayments on debt (38)
Cash restricted for line of credit (141)
Dividends paid on common stock (59)
--------
Net cash used in financing activities (365)
Net change in cash and cash equivalents 25
Net change in cash and cash equivalents from
discontinued operations (615)
Cash and Cash Equivalents at Beginning of Period 6,178
--------
Cash and Cash Equivalents at End of Period $5,588
========
Headquartered in Clinton, Mississippi, WorldCom, Inc., now known
as MCI -- http://www.worldcom.com/-- is a pre-eminent global
communications provider, operating in more than 65 countries and
maintaining one of the most expansive IP networks in the world.
The Company filed for chapter 11 protection on July 21, 2002
(Bankr. S.D.N.Y. Case No. 02-13532). On March 31, 2002, the
Debtors listed $103,803,000,000 in assets and $45,897,000,000 in
debts. The Bankruptcy Court confirmed WorldCom's Plan on October
31, 2003, and on April 20, 2004, the company formally emerged from
U.S. Chapter 11 protection as MCI, Inc. (Worldcom Bankruptcy News,
Issue No. 65; Bankruptcy Creditors' Service, Inc., 215/945-7000)
*********
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*********
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