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/raid1/www/Hosts/bankrupt/TCR_Public/050409.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, April 9, 2005, Vol. 9, No. 83 Headlines AMERICAN BUSINESS: Files Schedules of Assets & Debts AMERICAN BUSINESS: Files Consolidated Schedules of Assets & Debts AMERICAN BUSINESS: AB Mortgage's Schedules of Assets & Debts AMERICAN BUSINESS: American Business Credit Files Schedules AMERICAN BUSINESS: Home American's Schedules of Assets & Debts AMERICAN BUSINESS: Tiger Relocation Files Schedules CATHOLIC CHURCH: Spokane's December 2004 Monthly Operating Report CATHOLIC CHURCH: Spokane's January 2005 Monthly Operating Report COVANTA WTE: Earns $182,576 of Net Income in January 2005 FRIEDMAN'S INC: Files Reports for Two Weeks Ended Jan. 29, 2005 FRIEDMAN'S INC: Files Reports for Four Weeks Ended Feb. 26, 2005 INTERSTATE BAKERIES: Files Financial Statements Ending Feb. 5 PG&E NATIONAL: ESV's July 2004 Monthly Operating Report PG&E NATIONAL: ESV's August 2004 Monthly Operating Report PG&E NATIONAL: ESV's September 2004 Monthly Operating Report PG&E NATIONAL: Quantum's August 2004 Monthly Operating Report PG&E NATIONAL: Quantum's September 2004 Monthly Operating Report PG&E NATIONAL: ET Gas' September 2004 Monthly Operating Report PG&E NATIONAL: ET Gas' October 2004 Monthly Operating Report PG&E NATIONAL: ET Investments' September 2004 Operating Report PG&E NATIONAL: ET Investments' October 2004 Operating Report PG&E NATIONAL: ET Holdings' August 2004 Monthly Operating Report PG&E NATIONAL: ET Holdings' Sept. 2004 Monthly Operating Report PG&E NATIONAL: ET Holdings' October 2004 Operating Report PG&E NATIONAL: ET Power's Sept. 2004 Monthly Operating Report PG&E NATIONAL: ET Power's October 2004 Monthly Operating Report NEWPOWER HOLDINGS: Files February 2005 Monthly Operating Report PARMALAT: Finanziaria Reports February 2005 Financial Results ROUGE INDUSTRIES: Files August 2004 Monthly Operating Report ROUGE INDUSTRIES: Files September 2004 Monthly Operating Report ROUGE INDUSTRIES: Files October 2004 Monthly Operating Report ROUGE INDUSTRIES: Files November 2004 Monthly Operating Report ROUGE INDUSTRIES: Files December 2004 Monthly Operating Report ROUGE INDUSTRIES: Files January 2005 Monthly Operating Report ROUGE INDUSTRIES: Files February 2005 Monthly Operating Report SOLUTIA INC: Posts $316 Million Net Loss for Fiscal Year 2004 SOLUTIA INC: Earns $1 Million of Net Income in February 2005 TORCH OFFSHORE: Posts $3.9 Million Net Loss in February 2005 TRENWICK AMERICA: Posts $60 Million Net Loss in February 2005 TRINITY ENERGY: Releases January 2005 Operating Report WESTPOINT STEVENS: Posts $21.8 Million Net Loss in February 2005 WESTPOINT STEVENS: WP Stevens I Posts $3MM Net Income in February WESTPOINT STEVENS: WP Stevens Stores' February Operating Report WESTPOINT STEVENS: JP Stevens & Co.'s February Operating Report WESTPOINT STEVENS: JP Stevens Enterprises' Feb. Operating Report US AIRWAYS: Posts $119 Million Net Loss in February 2005 ********* AMERICAN BUSINESS: Files Schedules of Assets & Debts ---------------------------------------------------- A. Real property $0 B. Personal property B.1 Cash on hand 0 B.2 Bank accounts JPMorgan Chase Bank, N.A. 663,079 Black Rock, Inc. 750,907 Firstrust Savings Bank 28,351 24,288 B.3 Security deposits 0 B.4 Household goods 0 B.5 Books, art work & collectibles unknown B.6 Wearing apparel 0 B.7 Furs and jewelry 27,024 B.8 Firearms and sporting goods 0 B.9 Interests in insurance policies 0 B.10 Annuities 0 B.11 Interests in retirement plans 0 B.12 Stock interests unknown B.13 Interests in partnerships 0 B.14 Bonds 0 B.15 Accounts receivable unknown B.16 Alimony 0 B.17 Other liquidated debts owed 0 B.18 Equitable and future interests 0 B.19 Contingent interests 0 B.20 Other contingent & unliquidated claims 0 B.21 Patents, copyrights & trademarks unknown B.22 Other intangibles unknown B.23 Automobiles 0 B.24 Boats 0 B.25 Aircraft 0 B.26 Office equipment and supplies unknown B.27 Machinery, furniture and fixtures 0 B.28 Inventory 0 B.29 Animals 0 B.30 Crops 0 B.31 Farming equipment 0 B.32 Farm supplies 0 B.33 Other personal property 30,000 TOTAL SCHEDULED ASSETS $1,523,649 ======================================================== C. Property claimed as exempt Not Applicable D. Secured claims 0 E. Unsecured priority claims Internal Revenue Service 1,461,010 Pennsylvania Department of Revenue 300,000 State of Delaware 104,667 F. Unsecured non-priority claims A/P Run 218,780,516 Unsecured Noteholders 521,633,096 Collateralized Noteholders (December 2003 Offering) 57,017,667 Collateralized Noteholders (May 2004 Offering) 43,818,529 TOTAL SCHEDULED LIABILITIES $843,115,485 ======================================================== Headquartered in Philadelphia, Pennsylvania, American Business Financial Services, Inc., together with its subsidiaries, is a financial services organization operating mainly in the eastern and central portions of the United States and California. The Company originates, sells and services home mortgage loans through its principal direct and indirect subsidiaries. The Company, along with four of its subsidiaries, filed for chapter 11 protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203). Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $1,083,396,000 in total assets and $1,071,537,000 in total debts. (American Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000) AMERICAN BUSINESS: Files Consolidated Schedules of Assets & Debts ----------------------------------------------------------------- A. Real property $0 B. Personal property B.2 Bank accounts Wilmington Trust Company $3,358 B.12 Stock interests unknown B.15 Accounts receivable unknown B.20 Other contingent & unliquidated claims I/O Strips 399,116,076 TOTAL SCHEDULED ASSETS $399,119,434 ======================================================== C. Property claimed as exempt Not Applicable D. Secured claims Law Debenture Trust Company of New York 57,029,207 The Patriot Group, LLC 20,887,693 Wells Fargo Bank N.A. 43,850,314 Clearwing Capital, LLC 15,000,000 E. Unsecured priority claims Internal Revenue Service 1,461,010 F. Unsecured non-priority claims Wilmington Trust Company 20,000 TOTAL SCHEDULED LIABILITIES $138,248,224 ======================================================== Headquartered in Philadelphia, Pennsylvania, American Business Financial Services, Inc., together with its subsidiaries, is a financial services organization operating mainly in the eastern and central portions of the United States and California. The Company originates, sells and services home mortgage loans through its principal direct and indirect subsidiaries. The Company, along with four of its subsidiaries, filed for chapter 11 protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203). Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $1,083,396,000 in total assets and $1,071,537,000 in total debts. (American Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000) AMERICAN BUSINESS: AB Mortgage's Schedules of Assets & Debts ------------------------------------------------------------ A. Real property $0 B. Personal property B.15 Accounts receivable LOA $220,870 Interest receivables 121,197 B.26 Office equipment and supplies unknown B.27 Machinery, furniture and fixtures unknown B.33 Other personal property Loans available for sale 34,405,581 TOTAL SCHEDULED ASSETS $34,747,648 ======================================================== C. Property claimed as exempt Not Applicable D. Secured claims Chrysalis Warehouse Funding, LLC 33,555,719 E. Unsecured priority claims Internal Revenue Service 1,461,010 F. Unsecured non-priority claims A/P Run American Business Financial Services Intercompany 3,071,672 Anita Shaw Recruiting, Inc. 30,000 Archive Systems 21,208 AT & T 13,075 Chesapeake Information Services 70,000 Dickman & Associates, Inc. 88,388 Geotrac 15,750 Marsh U.S.A., Inc. 10,000 Nancy Adams Personnel 15,200 Residential Appraisal Services 25,975 Strategic Products and Services 12,771 U.S. Property and Appraisal Services 48,300 Worldwide Express 18,623 Others 69,498 TOTAL SCHEDULED LIABILITIES $38,527,189 ======================================================== Headquartered in Philadelphia, Pennsylvania, American Business Financial Services, Inc., together with its subsidiaries, is a financial services organization operating mainly in the eastern and central portions of the United States and California. The Company originates, sells and services home mortgage loans through its principal direct and indirect subsidiaries. The Company, along with four of its subsidiaries, filed for chapter 11 protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203). Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $1,083,396,000 in total assets and $1,071,537,000 in total debts. (American Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000) AMERICAN BUSINESS: American Business Credit Files Schedules ----------------------------------------------------------- A. Real property $0 B. Personal property B.1 Cash on hand 1,650 B.2 Bank accounts Chase Account No. 00103386927 683 Chase Account No. 00103387115 782 B.3 Security deposits JPMorgan Chase Bank related to corporate credit card account 100,000 Fortress related to expense reimbursements 125,310 Fortress related to indemnification obligations 200,000 JPMorgan Chase Bank securing reimbursement rights against ABC under letter of credit 7,065,725 Amounts on deposit in control account in favor of Patriot 113,640 B.5 Books, art work & collectibles unknown B.9 Interests in insurance policies Deposit with Blue Cross 825,000 Prepaid insurance 647,619 B.12 Stock interests unknown B.15 Accounts receivable Interest receivable 778 Late fee receivable 6,227,262 Miscellaneous accounts receivable 1,312,695 Miscellaneous servicer advances and fee receivables 11,696,405 B.17 Other liquidated debts owed Other prepaid expenses 80,788 Prepaid dues and subscriptions 13,622 Prepaid fees for equipment maintenance 382,081 Prepaid fees to placement firms 16,274 Prepaid licensing fees 15,700 Prepaid professional fees 114,191 Servicer periodic interest advances 5,751,984 B.20 Other contingent & unliquidated claims unknown B.21 Patents, copyrights & trademarks unknown B.23 Automobiles 1996 Ford Explorer 0 2001 Astro Van 3,205 2003 Astro Van 7,185 B.26 Office equipment and supplies unknown B.27 Machinery, furniture and fixtures 0 B.33 Other personal property unknown TOTAL SCHEDULED ASSETS $34,702,579 ======================================================== C. Property claimed as exempt Not Applicable D. Secured Claims Fortress Investment Group, Inc. 0 JP Morgan Chase Bank NA 56,323 53,917 The Patriot Group, LLC 0 Escrow and collections accounts 57,000,000 Credit Tech and Ameer Saleem 0 E. Unsecured Priority Claims Wages, benefits and vacation 0 Internal Revenue Service 1,461,010 Pennsylvania Dep't. of Revenue 679 State Corp. Commission 1,330 Trust fund taxes 0 F. Unsecured Non-Priority Claims Alexander Associates 110,473 Alliance Consulting 145,927 ABFS (Intercompany) 561,550,072 AT&T 111,193 CDW Computer Centers, Inc. 116,120 Computer Image Systems, Inc. 165,872 Concerto Software, Inc. 341,766 Delaware Secretary of State 105,105 Dewey Ballantine 110,018 Duanne Morris and Heckscher LLP 292,700 H. Terry Hutchens 112,664 H2L2 LLP 111,534 Hecker Colasurdo and Segali PC 155,565 Hughes Watters and Askanase 105,544 Keith D. Weiner and Associates 270,918 One Presidential Blvd. Associates 232,500 Puleo and Demilio LLC 491,163 Purcel Krug and Haller 134,307 Robert A. Tremain and Associates PC 157,462 Securitization Trusts 25,567,999 Security Search and Abstract Co., Inc. 165,211 Shapiro and Fishman 170,168 Source One Services Corp. 139,526 Spherion Corp. 105,449 St. Ives Burrups, Inc. 122,891 Thomas Puleo LLC 102,047 Verizon Wireless 122,887 ZC Sterling Corporation 680,786 406,856 Others 8,486,674 Whole loan purchasers 0 TOTAL SCHEDULED LIABILITIES $659,464,656 ======================================================== Headquartered in Philadelphia, Pennsylvania, American Business Financial Services, Inc., together with its subsidiaries, is a financial services organization operating mainly in the eastern and central portions of the United States and California. The Company originates, sells and services home mortgage loans through its principal direct and indirect subsidiaries. The Company, along with four of its subsidiaries, filed for chapter 11 protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203). Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $1,083,396,000 in total assets and $1,071,537,000 in total debts. (American Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000) AMERICAN BUSINESS: Home American's Schedules of Assets & Debts -------------------------------------------------------------- A. Real property $0 B. Personal property B.1 Cash on hand $250 B.2 Bank accounts Beneficial Checking Account No. 882010598 8,154 B.3 Security deposits Calabasas Village, LLC 27,836 HQ Enterprises 1,930 HQ Global Workplace 3,825 Lockhead Martin 29,588 Lynx Funding LLC 16,786 Idwest Plaza 3,580 B.12 Stock interests unknown B.15 Accounts receivable LOA (Net book value) 32,336 Interest receivable -- loans 631,431 Miscellaneous accounts receivable 5,380 B.17 Other liquidated debts owed Other prepaid expenses 9,508 Prepaid advertising fees 0 Prepaid equipment maintenance 9,973 Prepaid licensing fees 8,411 B.21 Patents, copyrights & trademarks unknown B.22 Other intangibles unknown B.26 Office equipment and supplies unknown B.27 Machinery, furniture and fixtures unknown B.33 Other personal property Leasehold improvements unknown Loans available for sale 177,820,125 Non-accrual loans 420,119 TOTAL SCHEDULED ASSETS $179,029,232 ======================================================== C. Property claimed as exempt Not Applicable D. Secured claims Chrysalis Warehouse Funding LLC 173,389,078 E. Unsecured priority claims Franchise Tax Board 250 Internal Revenue Service 1,461,010 F. Unsecured non-priority claims Customer Rebate Program 905,610 Accounts Payable Run 7,191,511 TOTAL SCHEDULED LIABILITIES $182,947,459 ======================================================== Headquartered in Philadelphia, Pennsylvania, American Business Financial Services, Inc., together with its subsidiaries, is a financial services organization operating mainly in the eastern and central portions of the United States and California. The Company originates, sells and services home mortgage loans through its principal direct and indirect subsidiaries. The Company, along with four of its subsidiaries, filed for chapter 11 protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203). Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $1,083,396,000 in total assets and $1,071,537,000 in total debts. (American Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000) AMERICAN BUSINESS: Tiger Relocation Files Schedules --------------------------------------------------- A. Real property $10,000 B. Personal property B.2 Bank accounts 59,101 TOTAL SCHEDULED ASSETS $69,101 ======================================================== C. Property claimed as exempt Not Applicable D. Secured claims 0 E. Unsecured priority claims Internal Revenue Service 1,461,010 NYS Assessment Receivables 620 F. Unsecured non-priority claims ABFS (Intercompany) 35,641,731 CSC Corporation Service Company 2,389 New York Department of State 9 TOTAL SCHEDULED LIABILITIES $37,105,769 ======================================================== Headquartered in Philadelphia, Pennsylvania, American Business Financial Services, Inc., together with its subsidiaries, is a financial services organization operating mainly in the eastern and central portions of the United States and California. The Company originates, sells and services home mortgage loans through its principal direct and indirect subsidiaries. The Company, along with four of its subsidiaries, filed for chapter 11 protection on Jan. 21, 2005 (Bankr. D. Del. Case No. 05-10203). Bonnie Glantz Fatell, Esq., at Blank Rome LLP represents the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $1,083,396,000 in total assets and $1,071,537,000 in total debts. (American Business Bankruptcy News, Issue No. 10; Bankruptcy Creditors' Service, Inc., 215/945-7000) CATHOLIC CHURCH: Spokane's December 2004 Monthly Operating Report ----------------------------------------------------------------- A full-text copy of the Diocese of Spokane's December 2004 monthly operating report is available for free at: http://bankrupt.com/misc/spokane_december_MOR.pdf Catholic Diocese of Spokane Balance Sheet As December 31, 2004 ASSETS Total Cash Accounts $3,910,535 Total Investments 3,909,784 Total Property 495,004 Total Loans Receivable 3,264,711 Total Interfund Loan Receivable 396,887 Total Accounts Receivable 79,618 Total Land and Buildings & Equip 2,272,137 Total Prepaid Expenses 4,603 -------------- Total Assets $14,333,280 ============== LIABILITIES AND NET ASSETS Liabilities Total Deposits Payable 5,261,848 Total Interest Payable 7,573 Total Accounts Payable 3,177 Net Assets Total Unrestricted - Fund Balance (3,123,998) Total Unrestricted Net Assets (3,123,998) T.R. - Guse Grant Funds 129,054 T.R. - Bishop's School Grants Funds (89,009) Total Replacement Fund 9,242,625 Total Diocesan D&L Funding 2,176,115 Total Guatemala Funds 618,173 Temporarily Restricted 147,767 -------------- Total liabilities & net assets $14,333,280 ============== Catholic Diocese of Spokane Income and Expense Statement For the period December 1 to 31, 2004 Total Income $207,097 Total Expenses 696,072 -------------- Net Excess or Deficit $488,975 ============== Catholic Diocese of Spokane Statement of Cash Receipts and Disbursements For the period December 1 to 31, 2004 Total Cash Receipts $199,961 Total Cash Disbursements ($1,044,746) ============== The Roman Catholic Church of the Diocese of Spokane filed for chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on Dec. 6, 2004. Michael J. Paukert, Esq., at Paine, Hamblen, Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $11,162,938 in total assets and $81,364,055 in total debts. (Catholic Church Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Service, Inc., 215/945-7000) CATHOLIC CHURCH: Spokane's January 2005 Monthly Operating Report ---------------------------------------------------------------- A full-text copy of the Diocese of Spokane's January 2005 monthly operating report is available for free at: http://bankrupt.com/misc/spokane_january_MOR.pdf Catholic Diocese of Spokane Balance Sheet As of January 31, 2005 ASSETS Total Cash Accounts $3,760,689 Total Investments 3,909,153 Total Property 495,004 Total Loans Receivable 3,264,711 Total Interfund Loan Receivable 396,887 Total Accounts Receivable 90,110 Total Land and Buildings & Equip 2,272,137 Total Prepaid Expenses 1,840 -------------- Total Assets $14,190,530 ============== LIABILITIES AND NET ASSETS Liabilities Total Deposits Payable 5,266,507 Total Interest Payable 16,914 Total Accounts Payable 3,177 Net Assets Total Unrestricted - Fund Balance (3,202,484) Total Unrestricted Net Assets (3,202,484) T.R. - Guse Grant Funds 175,676 T.R. - Bishop's School Grants Funds (88,980) Total Replacement Fund 9,161,397 Total Diocesan D&L Funding 2,176,115 Total Guatemala Funds 616,244 Temporarily Restricted 152,660 -------------- Total liabilities & net assets $14,190,530 ============== Catholic Diocese of Spokane Income and Expense Statement For the period January 1 to 31, 2005 Total Income $190,405 Total Expenses 268,534 -------------- Net Excess or Deficit $78,129 ============== Catholic Diocese of Spokane Statement of Cash Receipts and Disbursements For the period January 1 to 31, 2005 Total Cash Receipts $192,073 Total Cash Disbursements ($343,435) ============== The Roman Catholic Church of the Diocese of Spokane filed for chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on Dec. 6, 2004. Michael J. Paukert, Esq., at Paine, Hamblen, Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $11,162,938 in total assets and $81,364,055 in total debts. (Catholic Church Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Service, Inc., 215/945-7000) COVANTA WTE: Earns $182,576 of Net Income in January 2005 --------------------------------------------------------- The Remaining WTE Debtors are: -- Covanta Warren Energy Resource Co., L.P., -- Covanta Warren Holdings I, Inc., and -- Covanta Warren Holdings II, Inc. WTE Debtors Consolidated Balance Sheet As of January 31, 2005 ASSETS Cash $894,587 Inventory - Accounts receivable 11,926,446 Land - Machinery, fixtures and equipment 46,979,418 Restricted funds 263,084 Other current assets 189,199 Other assets 109,080 ------------ Total assets $60,361,814 ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Postpetition Liabilities: Subject to postpetition collateral or financing order - Advances from parent and affiliates $7,418,059 Accounts payable and other liabilities 2,213,946 ------------ Total postpetition liabilities 9,632,005 Prepetition Liabilities: Project Debt 18,879,111 Advances from parent and affiliates 26,235,087 Liabilities Subject to Compromise 1,827,466 Taxes/Others - ------------ Total Prepetition Liabilities 46,942,664 ------------ Equity: Capital stock - Capital surplus - Retained earnings - prepetition 8,343,700 Retained earnings - postpetition (4,556,555) ------------ Total Equity 3,878,145 ------------ Total Liabilities and Equity $60,361,814 ============ WTE Debtors Consolidated Statements of Operations From January 1 to January 31, 2005 INCOME: Service, electric and construction revenue $774,196 Waste-to-Energy project debt revenue 400,562 ------------ Total Income 1,174,758 EXPENSES: Operating and construction costs 619,179 Waste-to-Energy project debt expense 103,253 Depreciation and amortization expense 189,750 Other - Net - Cost allocations from parent & affiliates 80,000 Gain on sale of businesses - ------------ Total Expenses 992,182 ------------ NET OPERATING PROFIT/(LOSS) 182,576 Non-Operating Income/(Expense) Reorganization costs - ------------ Total Non-Operating Income (Expense) - Income Taxes - Income before cumulative effect of accounting Change 182,576 ------------ NET INCOME $182,576 ============ WTE Debtors Consolidated Cash Flow Statements From January 1 to January 31, 2005 Net income $182,576 Depreciation and amortization 189,750 Receivables (34,670) Other assets (10,626) Payables and accrued expenses (82,953) Other liabilities 1,083 Property, plant and equipment expenditures (153,679) Restricted funds, net (19,321) (Repayments) issuance of debt, net - Advances from parents & affiliates 44,858 ------------ 117,018 Cash, beginning balance 777,569 ------------ Cash, ending balance $894,587 ============ Headquartered in Fairfield, New Jersey, Covanta Energy Corporation -- http://www.covantaenergy.com/-- is a publicly traded holding company whose subsidiaries develop, own or operate power generation facilities and water and wastewater facilities in the United States and abroad. The Company filed for Chapter 11 protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826). Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary, Gottlieb, Steen & Hamilton, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $3,280,378,000 in assets and $3,031,462,000 in liabilities. On March 10, 2004, Covanta Energy Corporation and its core subsidiaries emerged from chapter 11 as a wholly owned subsidiary of Danielson Holding Corporation. Some of Covanta's non-core subsidiaries have liquidated under separate chapter 11 plans. (Covanta Bankruptcy News, Issue No. 75; Bankruptcy Creditors' Service, Inc., 215/945-7000) FRIEDMAN'S INC: Files Reports for Two Weeks Ended Jan. 29, 2005 --------------------------------------------------------------- On March 18, 2005, Friedman's Inc. and its debtor-affiliates filed their consolidated monthly operating reports for the period January 14, 2005, through January 29, 2005, with the U.S. Bankruptcy Court for the Southern District of Georgia. At Jan. 29, 2005, Friedman's Inc. and its debtor-affiliates' financial reports show: Beginning Cash Balance ($2,319,376) Total Cash Receipts 17,728,569 Total Cash Disbursements 3,438,240 Ending Cash Balance $11,970,953 A full-text copy of Friedman's Inc. and its debtor-affiliates' Monthly Operating Reports for the period ended Jan. 29, 2005, are available at no charge at: http://www.sec.gov/Archives/edgar/data/911004/000095017205000859/gencorpad99-1.txt Headquartered in Savannah, Georgia, Friedman's Inc. -- http://www.friedmans.com/-- is the parent company of a group of companies that operate fine jewelry stores located in strip centers and regional malls in the southeastern United States. The Company and its affiliates filed for chapter 11 protection on Jan. 14, 2005 (Bankr. S.D. Ga. Case No. 05-40129). John W. Butler, Jr., Esq., George N. Panagakis, Esq., Timothy P. Olson, Esq., and Alexa N. Paliwal, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $395,897,000 in total assets and $215,751,000 in total debts. FRIEDMAN'S INC: Files Reports for Four Weeks Ended Feb. 26, 2005 ---------------------------------------------------------------- On March 30, 2005, Friedman's Inc. and its debtor-affiliates filed their consolidated monthly operating reports for the period January 30, 2005 through February 26, 2005 with the U.S. Bankruptcy Court for the Southern District of Georgia. At Feb. 26, 2005, Friedman's Inc. and its debtor-affiliates' financial reports shows: Beginning Cash Balance $11,970,553 Total Cash Receipts 24,141,266 Total Cash Disbursements 26,811,113 Ending Cash Balance $9,300,706 A full-text copy of Friedman's Inc. and its debtor-affiliates' Monthly Operating Reports for the period ended Feb. 26, 2005, is available at no charge at: http://www.sec.gov/Archives/edgar/data/911004/000095017205001008/friedmans99.txt Headquartered in Savannah, Georgia, Friedman's Inc. -- http://www.friedmans.com/-- is the parent company of a group of companies that operate fine jewelry stores located in strip centers and regional malls in the southeastern United States. The Company and its affiliates filed for chapter 11 protection on Jan. 14, 2005 (Bankr. S.D. Ga. Case No. 05-40129). John W. Butler, Jr., Esq., George N. Panagakis, Esq., Timothy P. Olson, Esq., and Alexa N. Paliwal, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $395,897,000 in total assets and $215,751,000 in total debts. INTERSTATE BAKERIES: Files Financial Statements Ending Feb. 5 ------------------------------------------------------------- Interstate Bakeries Corporation and Subsidiaries Unaudited Consolidated Monthly Operating Report Four Weeks Ended February 5, 2005 REVENUE Gross Income $258,730,476 Less Cost of Goods Sold Ingredients, Packaging, & Outside Purchasing 61,757,466 Direct & Indirect Labor 48,362,773 Overhead & Production Administration 13,535,268 ------------ Total Cost of Goods Sold 123,655,507 ------------ Gross Profit $135,074,969 ------------ OPERATING EXPENSES Owner-Draws/Salaries - Selling & Delivery Employee Salaries $65,488,233 Advertising and Marketing 1,914,722 Insurance (Property, Casualty, & Medical) 14,599,425 Payroll Taxes 5,190,533 Lease and Rent 4,548,878 Telephone and Utilities 2,303,163 Corporate Expense (Including Salaries) 7,500,000 Other Expenses 30,070,446 ------------ Total Operating Expenses $131,615,400 ------------ EBITDA $3,459,569 Restructuring Charges (849,324) Reorganization Expenses 4,523,658 Depreciation and Amortization 6,867,369 Other Income (2,199) Interest Expense 3,148,853 ------------ Operating Income (Loss) (10,228,788) Income Tax Expense (Benefit) (2,471,386) ------------ Net Income (Loss) ($7,757,402) ============ CURRENT ASSETS Accounts Receivable at end of period $177,247,780 Increase (Decrease) in Accounts Receivable 2,342,375 Inventory at end of period 69,279,174 Increase (Decrease) in Inventory for period (2,977,390) Cash at end of period 96,277,992 Increase (Decrease) in Cash for period 6,182,184 LIABILITIES Increase (Decrease) in Liabilities Not Subject to Compromise 5,210,625 Increase (Decrease) in Liabilities Subject to Compromise 1,551,860 Taxes payable: Federal Payroll Taxes 11,916,503 State/Local Payroll Taxes 5,395,006 State Sales Taxes 705,792 Real Estate and Personal Property Taxes 11,858,497 Other 6,605,276 ------------ Total Taxes Payable $36,481,075 ------------ The Company and seven of its debtor-affiliates filed for chapter 11 protection on September 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $1,626,425,000 in total assets and $1,321,713,000 (excluding the $100,000,000 issue of 6.0% senior subordinated convertible notes due August 15, 2014, on August 12, 2004) in total debts. (Interstate Bakeries Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ESV's July 2004 Monthly Operating Report ------------------------------------------------------- Energy Service Ventures, Inc. Balance Sheet As of July 31, 2004 ASSETS Current Assets Cash $1,894,246 Prepetition Accounts Receivable 3,575,924 Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Allowance for Bad Debts (2,791,840) Deposits - Current Tax Assets - ------------ Total Current Assets $2,678,330 Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - ------------ Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subsidiaries - ------------ Total Other Assets - ------------ TOTAL ASSETS Undetermined ============ LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $14,928 Notes Payable - Rent and Leases Payable - Accrued Interest - Other - ------------ Total Postpetition Liabilities 14,928 Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined ------------ Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments 10,000 Paid-In Capital Surplus 55,048,465 Retained Earnings Prepetition (76,394,062) Postpetition (53,453) ------------ Total Owner's Equity ($21,389,049) ------------ TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============ Energy Service Ventures, Inc. Income Statement For the Period July 1 to July 31, 2004 Total Sales/Income - COST OF SALES: Purchases of Inventory - Purchased Services - Other - ------------ Total Cost of Sales - ------------ Gross Profit - OPERATING EXPENSES: Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits - Advertising - Auto. Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Accts.) - Rents - Restructuring Expense ($1,165) Repairs & Maintenance - Supplies - Taxes (Real Property) - Taxes (Other) - Telephone - Travel - Utilities - Other Operating Expenses Power costs - Bank Fees - ------------ Total Operating Expenses (1,164) ------------ Profit/Loss from Operation 1,164 Other Income (Expenses): Interest Income - Interest Expense - Equity Earnings - ------------ Total Other Income (Expenses) - ------------ Income Before Taxes 1,164 Income Taxes Expense 442 ------------ Net Income (Loss) $722 ============ Energy Service Ventures, Inc. Cash Reconciliation Report For the Period July 1 to July 31, 2004 Cash balance from prior balance sheet $1,893,082 Net income for month 722 Expense Not Requiring Cash: Taxes 442 Interest Income - ------------ Total Expenses Not Requiring Cash 442 ------------ Total Cash from Operations 1,894,246 Other sources/uses of cash: Decrease (Increase): Accounts Receivable - Inventory - Equipment - Furniture & Fixtures - Prepaids - Increase (Decrease): Accounts Payable - Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - (Less) Unrecorded Bank Service Charges - ------------ Total Other Sources & Uses of Cash - ------------ Ending Cash Balance $1,894,246 ============ Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ESV's August 2004 Monthly Operating Report --------------------------------------------------------- Energy Service Ventures, Inc. Balance Sheet As of August 31, 2004 ASSETS Current Assets Cash $1,895,804 Prepetition Accounts Receivable 3,575,924 Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Allowance for Bad Debts (2,791,840) Deposits - Current Tax Assets - ------------ Total Current Assets $2,679,888 Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - ------------ Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subsidiaries - ------------ Total Other Assets - ------------ TOTAL ASSETS Undetermined ============ LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $14,928 Notes Payable - Rent and Leases Payable - Accrued Interest - Other - ------------ Total Postpetition Liabilities 14,928 Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined ------------ Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments 10,000 Paid-In Capital Surplus 55,048,465 Retained Earnings Prepetition (76,394,062) Postpetition (52,487) ------------ Total Owner's Equity ($21,388,083) ------------ TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============ Energy Service Ventures, Inc. Income Statement For the Period August 1 to August 31, 2004 Total Sales/Income - COST OF SALES: Purchases of Inventory - Purchased Services - Other - ------------ Total Cost of Sales - ------------ Gross Profit - OPERATING EXPENSES: Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits - Advertising - Auto. Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Accts.) - Rents - Restructuring Expense ($1,558) Repairs & Maintenance - Supplies - Taxes (Real Property) - Taxes (Other) - Telephone - Travel - Utilities - Other Operating Expenses Power costs - Bank Fees - ------------ Total Operating Expenses (1,557) ------------ Profit/Loss from Operation 1,557 Other Income (Expenses): Interest Income - Interest Expense - Equity Earnings - ------------ Total Other Income (Expenses) - ------------ Income Before Taxes 1,557 Income Taxes Expense 591 ------------ Net Income (Loss) $965 ============ Energy Service Ventures, Inc. Cash Reconciliation Report For the Period August 1 to August 31, 2004 Cash balance from prior balance sheet $1,894,246 Net income for month 965 Expense Not Requiring Cash: Taxes 591 Interest Income - ------------ Total Expenses Not Requiring Cash 591 ------------ Total Cash from Operations 1,895,804 Other sources/uses of cash: Decrease (Increase): Accounts Receivable - Inventory - Equipment - Furniture & Fixtures - Prepaids - Increase (Decrease): Accounts Payable - Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - (Less) Unrecorded Bank Service Charges - ------------ Total Other Sources & Uses of Cash - ------------ Ending Cash Balance $1,895,804 ============ Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ESV's September 2004 Monthly Operating Report ------------------------------------------------------------ Energy Service Ventures, Inc. Balance Sheet As of September 30, 2004 ASSETS Current Assets Cash $1,897,529 Prepetition Accounts Receivable 3,575,924 Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Allowance for Bad Debts (2,791,840) Deposits - Current Tax Assets - ------------ Total Current Assets $2,681,613 Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - ------------ Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets Undetermined Investments in Subsidiaries - ------------ Total Other Assets - ------------ TOTAL ASSETS Undetermined ============ LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $14,928 Notes Payable - Rent and Leases Payable - Accrued Interest - Other - ------------ Total Postpetition Liabilities 14,928 Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined ------------ Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments 10,000 Paid-In Capital Surplus 55,048,465 Retained Earnings Prepetition (76,394,062) Postpetition (52,111) ------------ Total Owner's Equity ($21,387,707) ------------ TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============ Energy Service Ventures, Inc. Income Statement For the Period September 1 to September 30, 2004 Total Sales/Income $0 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other - ------------ Total Cost of Sales 0 ------------ Gross Profit 0 OPERATING EXPENSES: Officer Salaries 0 Other Employee Salaries 0 Taxes (Payroll) 0 Employee Benefits 1,118 Advertising 0 Auto. Expenses 0 Entertainment 0 Insurance (Real Estate) 0 Insurance (Other) 0 Leases (Other than Rent) 0 Outside Services & Contractors 0 Professional Fees (Atty. Accts.) 0 Rents 0 Restructuring Expense ($1,725) Repairs & Maintenance 0 Supplies 0 Taxes (Real Property) 0 Taxes (Other) 0 Telephone 0 Travel 0 Utilities 0 Other Operating Expenses Power costs - Bank Fees - ------------ Total Operating Expenses (606) ------------ Profit/Loss from Operation (606) Other Income (Expenses): Interest Income - Interest Expense - Equity Earnings - ------------ Total Other Income (Expenses) - ------------ Income Before Taxes 606 Income Taxes Expense 230 ------------ Net Income (Loss) $376 ============ Energy Service Ventures, Inc. Cash Reconciliation Report For the Period September 1 to September 30, 2004 Cash balance from prior balance sheet $1,895,804 Net income for month 376 Expense Not Requiring Cash: Taxes 230 Interest Income - ------------ Total Expenses Not Requiring Cash 230 ------------ Total Cash from Operations 1,896,411 Other sources/uses of cash: Decrease (Increase): Accounts Receivable 1,118 Inventory - Equipment - Furniture & Fixtures - Prepaids - Increase (Decrease): Accounts Payable - Accrued Interest - Accrued P/R Taxes - Accrued Professional Fees - Accrued Rent - Accrued Salaries - Accrued Sales Tax - Note Payable Taxes - (Less) Unrecorded Bank Service Charges - ------------ Total Other Sources & Uses of Cash 1,118 ------------ Ending Cash Balance $1,897,529 ============ Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: Quantum's August 2004 Monthly Operating Report ------------------------------------------------------------- Quantum Ventures Balance Sheet As of August 31, 2004 ASSETS Current Assets Cash - Prepetition Accounts Receivable - Postpetition Accounts Receivable - Receivables from Officers/Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Prepaid Expenses - Deposits - Current Tax Assets Undetermined ------------ Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - ------------ Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets - Investments in Subsidiaries ($21,223,185) ------------ Total Other Assets ($21,223,185) ------------ TOTAL ASSETS Undetermined ============ LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable - Notes Payable - Rent and Leases Payable - Accrued Interest - Other - ------------ Total Postpetition Liabilities - Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined ------------ Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments $100 Paid-In Capital Surplus 233,222,604 Retained Earnings Prepetition (254,177,934) Postpetition - ------------ Total Owner's Equity ($20,955,230) ------------ TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============ Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: Quantum's September 2004 Monthly Operating Report ---------------------------------------------------------------- Quantum Ventures Balance Sheet As of September 30, 2004 ASSETS Current Assets Cash - Prepetition Accounts Receivable - Postpetition Accounts Receivable - Receivables from Officers/ Employees/Affiliates - Notes Receivable Stocks - Inventory - Other Current Assets Prepaid Expenses - Deposits - Current Tax Assets Undetermined ------------ Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures - Less Accumulated Depreciation - ------------ Total Fixed Assets - Other Assets (Identify) Amortizable Costs - Deferred Tax Assets - Investments in Subsidiaries ($21,223,185) ------------ Total Other Assets ($21,223,185) ------------ TOTAL ASSETS Undetermined ============ LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable - Notes Payable - Rent and Leases Payable - Accrued Interest - Other - ------------ Total Postpetition Liabilities - Prepetition Liabilities Priority Claims - Secured Debts - Unsecured Debts Undetermined ------------ Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owners' Investments $100 Paid-In Capital Surplus 233,222,604 Retained Earnings Prepetition (254,177,934) Postpetition - ------------ Total Owner's Equity ($20,955,230) ------------ TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============ Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Gas' September 2004 Monthly Operating Report -------------------------------------------------------------- NEGT Energy Trading-Gas Corporation Unaudited Balance Sheet As of September 30, 2004 ASSETS Current Assets Cash $10,493,479 Accounts Receivable-Trade 24,039,348 Valuation from Unrealized Commodity Contracts Undetermined Receivables from Officers/Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets Deposits 57,975,017 Prepayments 10,036,386 Other Current Assets 3,113,514 -------------- Total Current Assets Undetermined Fixed Assets Land 0 Building 0 Equipment, Furniture & Fixtures 20,899,653 Less Accumulated Depreciation (20,595,761) -------------- Total Fixed Assets $303,892 Other Assets Accrued taxes Undetermined -------------- Total Other Assets Undetermined -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other: Accrued Legal fees 0 Accrued Payroll and Benefits 59,612 -------------- Total Postpetition Liabilities $59,862 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owner's Investments - Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined -------------- Total Owner's Equity Undetermined -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== NEGT Energy Trading-Gas Corporation Income Statement For the Period September 1 to September 30, 2004 Total Sales/Income $622,644 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other: (Identify) 0 Purchase of Commodities 0 -------------- Total Cost of Sales 0 -------------- Gross Profit 622,644 OPERATING EXPENSES: Bad Debt Expense 0 Bank Charges 512 Communications 181 Computer Supplies 0 Credit & Commitment Fees 0 Datafeeds 0 Fixed Assets Depreciation 102,497 Indirect Allocations 53,607 Insurance 20,450 Legal Fees 375,000 Recruiting & Relocation 0 Realized(Gain)/Loss on Foreign Exchange (4,274) Rent 4,672 Unrealized(Gain)/Loss on Foreign Exchange 0 Office Supplies 0 Other 5,627 Payroll and benefits 46,080 Professional Fees 8,063 Software Costs 4,950 Subscriptions 0 Taxes Other than Income 488 Training 0 -------------- Total Operating Expenses 617,856 -------------- Profit/Loss from Operation 4,788 Other Income (Expenses): Interest Income 399,786 Interest Expense 0 Equity in Subsidiaries 0 Other Income(Expenses) (51,422) -------------- Total Other Income (Expenses) 348,364 -------------- Income Before Taxes $353,152 Income Taxes Expense (Benefit) Undetermined -------------- NET INCOME Undetermined ============== NEGT Energy Trading-Gas Corporation Cash Reconciliation Report For the Period September 1 to September 30, 2004 Cash balance from prior balance sheet $10,482,611 Pre-tax Net income for month 353,152 Income/Expenses Not Requiring Cash: Depreciation 102,497 (Gain) Loss on the Sale of Fixed Assets 51,422 Unrealized (Gain) Loss on Foreign Exchange 0 Relief of Allowance for Doubtful Accts 0 -------------- Total Expenses Not Requiring Cash 153,919 -------------- Total Cash from Operations 10,989,683 Other sources/uses of cash: Decrease (Incr): Accounts Receivable Non-Affiliate 600 Accounts Receivable Affiliate 494,047 Inventory 0 Equipment 5,000 Furniture & Fixtures 0 Prepaids 0 Deposits 0 Other Current Assets 0 Increase (Decr): Accounts Payable Non-Affiliate (160) Accounts Payable Affiliate (718,876) Accrued Liabilities 0 Current Deferred Liabilities 0 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Tax Liability (276,815) -------------- Total Other Sources & Uses of Cash (496,203) -------------- ENDING CASH BALANCE $10,493,479 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Gas' October 2004 Monthly Operating Report ------------------------------------------------------------ NEGT Energy Trading-Gas Corporation Unaudited Balance Sheet As of October 31, 2004 ASSETS Current Assets Cash $10,515,217 Accounts Receivable-Trade 24,039,987 Valuation from Unrealized Commodity Contracts Undetermined Receivables from Officers/Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets Deposits 56,737,059 Prepayments 10,036,386 Other Current Assets 3,113,514 -------------- Total Current Assets Undetermined Fixed Assets Land 0 Building 0 Equipment, Furniture & Fixtures 20,899,653 Less Accumulated Depreciation (20,697,046) -------------- Total Fixed Assets $202,607 Other Assets Accrued taxes Undetermined -------------- Total Other Assets Undetermined -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other: Accrued Legal fees 0 Accrued Payroll and Benefits 35,672 -------------- Total Postpetition Liabilities $35,922 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owner's Investments - Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined -------------- Total Owner's Equity Undetermined -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== NEGT Energy Trading-Gas Corporation Income Statement For the Period October 1 to October 31, 2004 Total Sales/Income $0 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other: (Identify) 0 Purchase of Commodities (639) -------------- Total Cost of Sales (639) -------------- Gross Profit 639 OPERATING EXPENSES: Bad Debt Expense 0 Bank Charges 1,131 Communications 38 Computer Supplies 0 Credit & Commitment Fees 0 Datafeeds 0 Fixed Assets Depreciation 101,284 Indirect Allocations 0 Insurance 0 Legal Fees 375,000 Recruiting & Relocation 0 Realized(Gain)/Loss on Foreign Exchange (4,875) Rent 0 Unrealized(Gain)/Loss on Foreign Exchange 0 Office Supplies 0 Other 23,049 Payroll and benefits 6,089 Professional Fees 6,193 Software Costs 0 Subscriptions 0 Taxes Other than Income 0 Training 0 -------------- Total Operating Expenses 507,912 -------------- Profit/Loss from Operation (507,273) Other Income (Expenses): Interest Income 452,007 Interest Expense 0 Equity in Subsidiaries 0 Other Income(Expenses) 0 -------------- Total Other Income (Expenses) 452,007 -------------- Income Before Taxes $55,265 Income Taxes Expense (Benefit) Undetermined -------------- NET INCOME Undetermined ============== NEGT Energy Trading-Gas Corporation Cash Reconciliation Report For the Period October 1 to October 31, 2004 Cash balance from prior balance sheet $10,493,479 Pre-tax Net income for month 55,265 Income/Expenses Not Requiring Cash: Depreciation 101,284 (Gain) Loss on the Sale of Fixed Assets 0 Unrealized (Gain) Loss on Foreign Exchange 0 Reversal of Income Tax Liability (41,615,224) Relief of Allowance for Doubtful Accts 0 -------------- Total Expenses Not Requiring Cash (41,513,939) -------------- Total Cash from Operations (31,075,725) Other sources/uses of cash: Decrease (Incr): Accounts Receivable Non-Affiliate (639) Accounts Receivable Affiliate 18,014,000 Inventory 0 Equipment 0 Furniture & Fixtures 0 Prepaids 0 Deposits 1,237,957 Other Current Assets 0 Increase (Decr): Accounts Payable Non-Affiliate 91,689 Accounts Payable Affiliate (1,353,289) Accrued Liabilities 0 Current Deferred Liabilities 0 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Tax Liability 23,601,224 -------------- Total Other Sources & Uses of Cash 41,590,943 -------------- ENDING CASH BALANCE $10,515,217 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Investments' September 2004 Operating Report -------------------------------------------------------------- NEGT ET Investments Corporation Unaudited Balance Sheet As of September 30, 2004 ASSETS Current Assets Cash $0 Accounts Receivable 0 Receivables from Officers/ Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets - ------------ Total Current Assets Undetermined Fixed Assets Land 0 Building 0 Equipment, Furniture & Fixtures 0 Less Accumulated Depreciation 0 ------------ Total Fixed Assets $0 Other Assets Investment in Subsidiaries Undetermined ------------ Total Other Assets Undetermined ------------ TOTAL ASSETS Undetermined ============ LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other 0 ------------ Total Postpetition Liabilities $250 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined ------------ Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock, Owner's Investments Undetermined Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined ------------ Total Owner's Equity Undetermined ------------ TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============ NEGT ET Investments Corporation Income Statement For the Period September 1 to September 30, 2004 Total Sales/Income $0 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other (Identify) 0 ------------ Total Cost of Sales 0 ------------ Gross Profit 0 OPERATING EXPENSES: Bad Debt Expense 0 Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits - Advertising - Auto Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Acct.) - Rent - Repairs & Maintenance - Supplies - Taxes (Real Property) - Taxes (Other) - Telephone - Travel - Utilities - Other - ------------ Total Operating Expenses - ------------ Profit/Loss from Operation - Other Income (Expenses): Interest Expense (2,190) Equity in ET Power (13,068,206) ------------ Total Other Income (Expenses) (13,070,396) ------------ Income Before Taxes (13,070,396) Income Taxes Expense (Benefit) Undetermined ------------ NET INCOME Undetermined ============ NEGT ET Investments Corporation Cash Reconciliation Report For the Period September 1 to September 30, 2004 Cash balance from prior balance sheet $0 Pre-tax Net income for month (13,070,396) Expense Not Requiring Cash: Depreciation 0 Other: Investment in Subsidiaries 13,068,206 Relief of Allowance of Doubtful Accounts 0 ------------ Total Expenses Not Requiring Cash 13,068,206 ------------ Total Cash from Operations (2,190) Other sources/uses of cash: Decrease (Incr): Accounts Receivable 0 Inventory 0 Equipment 0 Furniture & Fixtures 0 Increase (Decr): Accounts Payable 0 Accounts Payable - Affiliate 2,190 Accounts Payable - Interest Payable 0 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Professional Fees 0 Accrued Rent 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Taxes Payable 0 (Less) Unrecorded Bank Service Charges 0 ------------ Total Other Sources & Uses of Cash 2,190 ------------ ENDING CASH BALANCE ($0) ============ Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Investments' October 2004 Operating Report ------------------------------------------------------------ NEGT ET Investments Corporation Unaudited Balance Sheet As of October 31, 2004 ASSETS Current Assets Cash $0 Accounts Receivable 0 Receivables from Officers/ Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets - ------------ Total Current Assets Undetermined Fixed Assets Land 0 Building 0 Equipment, Furniture & Fixtures 0 Less Accumulated Depreciation 0 ------------ Total Fixed Assets $0 Other Assets Investment in Subsidiaries Undetermined ------------ Total Other Assets Undetermined ------------ TOTAL ASSETS Undetermined ============ LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other 0 ------------ Total Postpetition Liabilities $250 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined ------------ Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock, Owner's Investments Undetermined Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined ------------ Total Owner's Equity Undetermined ------------ TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============ NEGT ET Investments Corporation Income Statement For the Period October 1 to October 31, 2004 Total Sales/Income $0 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other (Identify) 0 ------------ Total Cost of Sales 0 ------------ Gross Profit 0 OPERATING EXPENSES: Bad Debt Expense 0 Officer Salaries - Other Employee Salaries - Taxes (Payroll) - Employee Benefits - Advertising - Auto Expenses - Entertainment - Insurance (Real Estate) - Insurance (Other) - Leases (Other than Rent) - Outside Services & Contractors - Professional Fees (Atty. Acct.) - Rent - Repairs & Maintenance - Supplies - Taxes (Real Property) - Taxes (Other) - Telephone - Travel - Utilities - Other 250 ------------ Total Operating Expenses (250) ------------ Profit/Loss from Operation - Other Income (Expenses): Interest Expense (2,614) Equity in ET Power 7,592,196 ------------ Total Other Income (Expenses) 7,589,582 ------------ Income Before Taxes 7,589,332 Income Taxes Expense (Benefit) Undetermined ------------ NET INCOME Undetermined ============ NEGT ET Investments Corporation Cash Reconciliation Report For the Period October 1 to October 31, 2004 Cash balance from prior balance sheet $0 Pre-tax Net income for month 7,589,332 Expense Not Requiring Cash: Depreciation 0 Other: Investment in Subsidiaries (7,592,196) Reversal of Income Tax Liability (77,739,231) Relief of Allowance of Doubtful Accounts 0 ------------ Total Expenses Not Requiring Cash (85,331,428) ------------ Total Cash from Operations ($77,742,095) Other sources/uses of cash: Decrease (Incr): Accounts Receivable 0 Inventory 0 Equipment 0 Furniture & Fixtures 0 Increase (Decr): Accounts Payable 0 Accounts Payable - Affiliate (65,060,135) Accounts Payable - Interest Payable 0 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Professional Fees 0 Accrued Rent 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Taxes Payable 142,802,231 (Less) Unrecorded Bank Service Charges 0 ------------ Total Other Sources & Uses of Cash 77,742,095 ------------ ENDING CASH BALANCE $0 ============ Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Holdings' August 2004 Monthly Operating Report ---------------------------------------------------------------- NEGT Energy Trading Holdings Corporation's Monthly Operating Report for the month ended August 31, 2004, is not yet available as of press time. Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Holdings' Sept. 2004 Monthly Operating Report --------------------------------------------------------------- NEGT Energy Trading Holdings Corporation Unaudited Balance Sheet As of September 30, 2004 ASSETS Current Assets Cash $302,251,578 Accounts Receivable 361,942 Receivables from Officers/ Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets Prepaids 617,451 Accrued taxes Undetermined ------------ Total Current Assets Undetermined Fixed Assets Land 0 Building 0 Equipment, Furniture & Fixtures 0 Less Accumulated Depreciation 0 Other Fixed Assets 0 ------------ Total Fixed Assets $0 Other Assets Investments in Subsidiaries Undetermined ------------ Total Other Assets Undetermined ------------ TOTAL ASSETS Undetermined ============ LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $193,250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other: Accrued Quarterly Fees 8,000 Accrued Legal Fees 2,538,597 Accrued Payroll and Benefits 162,950 ------------ Total Postpetition Liabilities $2,902,797 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined ------------ Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owner's Investments Undetermined Paid-In Capital Surplus Undetermined Retained Earnings Prepetition Undetermined Postpetition Undetermined ------------ Total Owner's Equity Undetermined ------------ TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============ NEGT Energy Trading Holdings Corporation Unaudited Income Statement For the Period September 1 to September 30, 2004 Total Sales/Income $0 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other 0 ------------ Total Cost of Sales 0 ------------ Gross Profit 0 OPERATING EXPENSES: Bad Debt Expense 0 Communications 221 Computer Supplies 0 Credit/Commitment Fees 0 Datafeeds 0 Indirect Allocations (3,260,785) Insurance 24,995 Legal Fees 375,000 Misc. Tax Payments 300 Office Supplies 0 Other 3,066,051 Other Business Expenses 6,145 Payroll and benefits 131,370 Postage & Delivery 0 Professional Fees 9,854 Recruiting & Relocation 0 Rent 5,710 Software Costs 10,200 Subscriptions 0 Training 0 Travel 0 US Trustees 525 ------------ Total Operating Expenses $369,589 ------------ Profit/Loss from Operation ($369,589) Other Income (Expenses): Interest Income 363,638 Interest Expense (456,654) Equity in Subsidiary: Investment in ET Power (266,698) Investment in ET Investment 42,900,783 Investment in ET Gas Corp. 5,762,222 Investment in NEGT International 56,580 ------------ Total Other Income (Expenses) 48,359,872 ------------ Income Before Taxes $47,990,283 Income Taxes Expense (Benefit) Undetermined ------------ NET INCOME Undetermined ============ NEGT Energy Trading Holdings Corporation Cash Reconciliation Report For the Period September 1 to September 30, 2004 Cash balance from prior balance sheet $302,733,316 Pre-tax Net income for month 47,990,283 Expense Not Requiring Cash: Depreciation 0 Investment in ET Power 266,698 Investment in ET Investment (42,900,783) Investment in ET Gas Corp. (5,762,222) Investment in NEGT International (56,580) Relief of Allowance of Doubtful Accounts 0 ------------ Total Expenses Not Requiring Cash (48,452,888) ------------ Total Cash from Operations 302,270,710 Other sources/uses of cash: Decrease (Incr): Accounts Receivable Non-Affiliate (34,455) Accounts Receivable Affiliate 3,536,289 Inventory 0 Equipment 0 Furniture & Fixtures 0 Prepaids 4,150 Increase (Decr): Accounts Payable - Non-Affiliate 148,662 Accounts Payable - Affiliate (3,562,042) Accrued Liabilities (111,738) Accrued Interest 0 Accrued P/R Taxes 0 Accrued Professional Fees 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Tax Liability 0 (Less) Unrecorded Bank Service Charges 0 ------------ Total Other Sources & Uses of Cash ($19,132) ------------ ENDING CASH BALANCE $302,251,578 ============ Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Holdings' October 2004 Operating Report --------------------------------------------------------- NEGT Energy Trading Holdings Corporation Unaudited Balance Sheet As of October 31, 2004 ASSETS Current Assets Cash $316,484,629 Accounts Receivable 421,836 Receivables from Officers/Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets Prepaids 624,492 Accrued taxes Undetermined -------------- Total Current Assets Undetermined Fixed Assets Land 0 Building 0 Equipment, Furniture & Fixtures 0 Less Accumulated Depreciation 0 Other Fixed Assets 0 -------------- Total Fixed Assets $0 Other Assets Investments in Subsidiaries Undetermined -------------- Total Other Assets Undetermined -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable 0 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other: Accrued Quarterly Fees 5,000 Accrued Legal Fees 2,395,293 Accrued Payroll and Benefits 97,452 -------------- Total Postpetition Liabilities $2,497,745 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/Owner's Investments Undetermined Paid-In Capital Surplus Undetermined Retained Earnings Prepetition Undetermined Postpetition Undetermined -------------- Total Owner's Equity Undetermined -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== NEGT Energy Trading Holdings Corporation Unaudited Income Statement For the Period October 1 to October 31, 2004 Total Sales/Income $79,961 COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other 0 -------------- Total Cost of Sales 0 -------------- Gross Profit $79,961 OPERATING EXPENSES: Bad Debt Expense 0 Communications 0 Computer Supplies 0 Credit/Commitment Fees 47 Datafeeds 100 Indirect Allocations (433,119) Insurance 0 Legal Fees 375,000 Misc. Tax Payments 0 Office Supplies 0 Other 12,144 Other Business Expenses 27,950 Payroll and benefits 49,281 Postage & Delivery 0 Professional Fees 7,570 Recruiting & Relocation 0 Rent 0 Software Costs 4,150 Subscriptions 0 Training 0 Travel 0 US Trustees 5,000 -------------- Total Operating Expenses 48,124 -------------- Profit/Loss from Operation 31,387 Other Income (Expenses): Interest Income 424,404 Interest Expense (539,022) Equity in Subsidiary: Investment in ET Power 154,942 Investment in ET Investment (70,149,899) Investment in ET Gas Corp. (41,670,490) Investment in NEGT International 32,070,390 -------------- Total Other Income (Expenses) (79,709,674) -------------- Income Before Taxes ($79,677,837) Income Taxes Expense (Benefit) Undetermined -------------- NET INCOME Undetermined ============== NEGT Energy Trading Holdings Corporation Cash Reconciliation Report For the Period October 1 to October 31, 2004 Cash balance from prior balance sheet $302,251,578 Pre-tax Net income for month (79,677,837) Expense Not Requiring Cash: Depreciation 0 Investment in ET Power (154,942) Investment in ET Investment 70,149,899 Investment in ET Gas Corp. 41,670,490 Investment in NEGT International (32,070,390) Reversal of Income Tax Liability (21,047,199) Relief of Allowance of Doubtful Accounts 0 -------------- Total Expenses Not Requiring Cash 58,547,857 -------------- Total Cash from Operations 281,121,598 Other sources/uses of cash: Decrease (Incr): Accounts Receivable Non-Affiliate (59,893) Accounts Receivable Affiliate 14,892,046 Inventory 0 Equipment 0 Furniture & Fixtures 0 Prepaids (7,040) Increase (Decr): Accounts Payable - Non-Affiliate (145,330) Accounts Payable - Affiliate (4,187,774) Accrued Liabilities (126,173) Accrued Interest 0 Accrued P/R Taxes 0 Accrued Professional Fees 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Tax Liability 24,997,199 (Less) Unrecorded Bank Service Charges 0 -------------- Total Other Sources & Uses of Cash 35,363,031 -------------- ENDING CASH BALANCE $316,484,629 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Power's Sept. 2004 Monthly Operating Report ------------------------------------------------------------- NEGT Energy Trading-Power L.P. Unaudited Balance Sheet As of September 30, 2004 ASSETS Current Assets Cash $27,164,558 Accounts Receivable 153,396,159 Valuation from Unrealized Commodity Contracts Undetermined Receivables from Officers/Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets Deposits 45,140,769 Prepaids 699,999 Other Current Assets 0 -------------- Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures 2,232,631 Less Accumulated Depreciation (2,127,897) Other Fixed Assets - -------------- Total Fixed Assets 104,734 Other Assets - -------------- Total Other Assets $0 -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other - -------------- Total Postpetition Liabilities $250 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/ Owner's Investments Undetermined Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined -------------- Total Owner's Equity Undetermined -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== NEGT Energy Trading-Power L.P. Income Statement For the Period September 1 to September 30, 2004 Total Sales/Income ($10,315,409) COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other: (Identify) 0 Cost of Commodities (3,090) -------------- Total Cost of Sales (3,090) -------------- Gross Profit (10,312,318) OPERATING EXPENSES: Bank Fee Charges 81 Bad Debt Expense 0 Communications 0 Entertainment 0 Fixed Assets Depreciation 34,910 Indirect Allocations 3,326,306 Legal Fees 0 Realized(Gain)/Loss on Foreign Exchange (4,380) Unrealized(Gain)/Loss on Foreign Exchange 2,482 Other 135 Training 0 Travel 0 -------------- Total Operating Expenses 3,359,534 -------------- Profit/Loss from Operation (13,671,853) Other Income (Expenses): Interest Income 363,410 Interest Expense 0 Other Income(Expenses) (26,461) -------------- Total Other Income (Expenses) 336,948 -------------- Income Before Taxes ($13,334,904) Income Taxes Expense (Benefit) Undetermined -------------- Net Income Undetermined ============== NEGT Energy Trading-Power L.P. Cash Reconciliation Report For the Period September 1 to September 30, 2004 Cash balance from prior balance sheet $27,131,134 Pre-tax Net income for month (13,334,904) Expense Not Requiring Cash: Depreciation 34,910 (Gain) Loss on sale of fixed assets 26,461 Unrealized (Gain) loss on foreign exchange 2,482 Relief of Allowance for Doubtful Accounts 0 -------------- Total Expenses Not Requiring Cash 63,853 -------------- Total Cash from Operations 13,860,083 Other sources/uses of cash: Decrease (Incr): Accounts Receivable Non-Affiliate 12,097,125 Accounts Receivable Affiliate 141,684,814 Inventory 0 Equipment 5,000 Furniture & Fixtures 0 Prepaids 315,000 Deposits 0 Other Current Assets 0 Increase (Decr): Accounts Payable Non-Affiliates (15,414,600) Accounts Payable Affiliates (125,382,865) Current Deferred Liabilities 0 Accrued Liabilities 0 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Professional Fees 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 -------------- Total Other Sources & Uses of Cash 13,304,474 Total Cash from Investing - Sale of Fixed Assets 0 -------------- Ending Cash Balance $27,164,558 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) PG&E NATIONAL: ET Power's October 2004 Monthly Operating Report --------------------------------------------------------------- NEGT Energy Trading-Power L.P. Unaudited Balance Sheet As of October 31, 2004 ASSETS Current Assets Cash $27,237,033 Accounts Receivable 142,570,794 Valuation from Unrealized Commodity Contracts Undetermined Receivables from Officers/Employees/Affiliates Undetermined Notes Receivable Stocks 0 Inventory 0 Other Current Assets Deposits 45,140,769 Prepaids 699,999 Other Current Assets 0 -------------- Total Current Assets Undetermined Fixed Assets Land - Building - Equipment, Furniture & Fixtures 2,232,631 Less Accumulated Depreciation (2,261,808) Other Fixed Assets - -------------- Total Fixed Assets 69,823 Other Assets - -------------- Total Other Assets $0 -------------- TOTAL ASSETS Undetermined ============== LIABILITIES AND EQUITY Postpetition Liabilities Accounts Payable $0 Accrued Quarterly Fees 250 Notes Payable 0 Rent and Leases Payable 0 Taxes Payable 0 Accrued Interest 0 Other - -------------- Total Postpetition Liabilities $250 Prepetition Liabilities Priority Claims Undetermined Secured Debts Undetermined Unsecured Debts Undetermined -------------- Total Prepetition Liabilities Undetermined Owner's Equity (Deficit) Capital Stock/ Owner's Investments Undetermined Paid-In Capital Surplus Undetermined Retained Earnings (deficit) Prepetition Undetermined Postpetition Undetermined -------------- Total Owner's Equity Undetermined -------------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Undetermined ============== NEGT Energy Trading-Power L.P. Income Statement For the Period October 1 to October 31, 2004 Total Sales/Income ($7,333,629) COST OF SALES: Purchases of Inventory 0 Purchased Services 0 Other: (Identify) 0 Cost of Commodities 0 -------------- Total Cost of Sales 0 -------------- Gross Profit 7,333,629 OPERATING EXPENSES: Bank Fee Charges 233 Bad Debt Expense (446,339) Communications 0 Entertainment 0 Fixed Assets Depreciation 34,910 Indirect Allocations 433,119 Legal Fees 0 Realized(Gain)/Loss on Foreign Exchange (4,995) Unrealized(Gain)/Loss on Foreign Exchange 2,830 Other 450 Training 0 Travel 0 -------------- Total Operating Expenses 20,210 -------------- Profit/Loss from Operation 7,313,418 Other Income (Expenses): Interest Income 433,721 Interest Expense 0 Other Income(Expenses) 0 -------------- Total Other Income (Expenses) 433,721 -------------- Income Before Taxes $7,747,139 Income Taxes Expense (Benefit) Undetermined -------------- Net Income Undetermined ============== NEGT Energy Trading-Power L.P. Cash Reconciliation Report For the Period October 1 to October 31, 2004 Cash balance from prior balance sheet $27,164,558 Pre-tax Net income for month 7,747,139 Expense Not Requiring Cash: Depreciation 34,910 (Gain) Loss on sale of fixed assets 0 Unrealized (Gain) loss on foreign exchange 2,830 Relief of Allowance for Doubtful Accounts (446,339) -------------- Total Expenses Not Requiring Cash (408,597) -------------- Total Cash from Operations 34,503,099 Other sources/uses of cash: Decrease (Incr): Accounts Receivable Non-Affiliate 10,819,629 Accounts Receivable Affiliate 800,150 Inventory 0 Equipment 0 Furniture & Fixtures 0 Prepaids 0 Deposits 0 Other Current Assets 0 Increase (Decr): Accounts Payable Non-Affiliates (4,519,479) Accounts Payable Affiliates (22,450,021) Current Deferred Liabilities 0 Accrued Liabilities 96 Accrued Interest 0 Accrued P/R Taxes 0 Accrued Professional Fees 0 Accrued Salaries 0 Accrued Sales Tax 0 Note Payable Taxes 0 Additional Paid-In Capital 8,083,750 -------------- Total Other Sources & Uses of Cash 7,266,066 Total Cash from Investing - Sale of Fixed Assets 0 -------------- Ending Cash Balance $27,237,033 ============== Headquartered in Bethesda, Maryland, PG&E National Energy Group, Inc. -- http://www.pge.com/-- (n/k/a National Energy & Gas Transmission, Inc.) develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services. The Company and its debtor-affiliates filed for Chapter 11 protection on July 8, 2003 (Bankr. D. Md. Case No. 03-30459). Matthew A. Feldman, Esq., Shelley C. Chapman, Esq., and Carollynn H.G. Callari, Esq., at Willkie Farr & Gallagher, and Paul M. Nussbaum, Esq., and Martin T. Fletcher, Esq., at Whiteford, Taylor & Preston L.L.P., represent the Debtors in their restructuring efforts. When the Company filed for protection from its creditors, it listed $7,613,000,000 in assets and $9,062,000,000 in debts. NEGT received bankruptcy court approval of its reorganization plan in May 2004, and that plan took effect on Oct. 29, 2004. (PG&E National Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc., 215/945-7000) NEWPOWER HOLDINGS: Files February 2005 Monthly Operating Report --------------------------------------------------------------- On Mar. 30, 2005, NewPower Holdings, Inc., filed its February 2005 Monthly Operating Report for the period from January 31, 2005, to February 28, 2005, with the U.S. Bankruptcy Court for the Northern District of Georgia, Newnan Division. The company reports an opening cash balance of $53,474,000 and a closing cash balance of $52,369,000. A full-text copy of NewPower Holdings, Inc.'s February 2005 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1119307/000090514805002302/efc5-0914_exhibit991.txt NewPower Holdings, Inc., and its debtor-affiliates 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, they reported $231,837,000 in assets and $87,936,000 in debts. On Aug. 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 Oct. 9, 2003, with respect to the Company and TNPC. PARMALAT: Finanziaria Reports February 2005 Financial Results ------------------------------------------------------------- Parmalat Finanziaria S.p.A. in Extraordinary Administration reports the operating and financial results of the Parmalat Group at February 28, 2005. Scope of Consolidation The scope of consolidation has been defined using principles that are consistent with those adopted in preparing the statement of income and balance sheet at December 31, 2004. Companies that are subject to certain restrictions on their management as a result of local bankruptcy proceedings that have effectively placed them outside the control of Parmalat Finanziaria S.p.A. in Extraordinary Administration, and companies in voluntary liquidation are no longer consolidated on a line-by-line basis. The current scope of consolidation no longer includes companies in which the Group held equity investments that were sold after January 1, 2005. The corresponding 2004 data have been restated accordingly on a pro forma basis. The operations divested in 2005 include the companies that comprised the USA Bakery Division (Mother's Cake & Cookies, Archway Cookies and three production units in Canada), which were sold in January 2005, and Parmalat Uruguay, which was sold in February 2005. Margherita Yogurt, which was placed in liquidation in February 2005, has also been removed from the scope of consolidation. Financial Highlights Cumulative Through February (in EUR millions) Revenues -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 543.9 543.9 568.7 Non Core Activities 83.4 76.4 56.0 -------- ------------- ------- Total 627.3 620.3 624.7 ======== ============= ======= EBITDA -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 31.0 31.0 38.5 Non Core Activities (3.3) (3.1) 5.8 -------- ------------- ------- Subtotal 27.7 27.8 44.4 Proceedings costs (9.7) (9.7) (10.0) -------- ------------- ------- Total 17.9 18.1 34.4 ======== ============= ======= % of Revenues -------------------------------- Previous Previous year Current year Pro-Forma year -------- ------------- ------- Core Activities 5.7 5.7 6.8 Non Core Activities (4.0) (4.1) (10.4) -------- ------------- ------- Subtotal 4.4 4.5 7.1 Total 2.9 2.9 5.5[sic] ======== ============= ======= * The Core Businesses include beverages (milk and fruit juices) and functional dairy products, which are sold under approximately 30 brands primarily in high-potential countries in which there is sustained demand for wellness products, consumers are willing to pay a premium price for Parmalat brands and there is access to leading-edge technologies. ** The Non-core Businesses are those that are located in countries or engaged in activities that are not strategically significant and have been earmarked for divestiture. Core Businesses The Group's Core Businesses had revenues of EUR568.7 million at February 28, 2005, up 4.6% from the EUR543.9 million booked in the same period last year. This revenue gain produced an improvement in EBITDA as well, which grew both in absolute terms (from EUR31.0 million to EUR38.5 million) and as a percentage of revenues (from 5.7% to 6.8%). These data do not reflect the impact of the non-recurring charges related to the extraordinary administration proceedings, which amounted to about EUR10.0 million, which is in line with February 2004. [Parmalat provides an] analysis of the Group's results in the main geographic regions in which it operates: -- Italy At EUR206.1 million, cumulative revenues were slightly lower (-3.3%) than the EUR213.2 million booked in February 2004. This decrease was accompanied by a decrease in EBITDA, which declined from EUR15.7 million to EUR15.4 million. The revenue shortfall mainly reflects lower sales by Boschi, an affiliate that operates primarily in the copacking business and was recently declared eligible for Extraordinary Administration. Total EBITDA held at about the same level as last year, as savings in manufacturing costs and overhead offset increases in promotional and advertising expenses. -- Spain Net revenues for the period totaled EUR31.5 million, down slightly compared with February 2004(-2.5%) from the EUR32.3 million reported last year. At the same time, EBITDA improved from EUR1.5 million (4.6% of revenues) to EUR1.7 million (5.3% of revenues). Lower unit sales and changing conditions in the domestic market, where competition is becoming increasingly aggressive, are the main reasons why revenues fell short of the level achieved in 2004. -- South Africa At February 28, 2005, revenues rose to EUR41.4 million, or 16.9% more than the EUR35.4 million booked in the same month last year. During the same period, EBITDA declined from EUR3.4 million to EUR3.3 million, equal to 9.5% and 7.9% of revenues, respectively. The main reasons for the improvement in revenues compared with February 2004 include the significant appreciation of the South African rand versus the euro (average exchange rate up 9.6% compared with February 2004) and an increase in unit sales for all of the main product lines (only cheese shipments were lower). Higher promotional expenses explain the reduction in EBITDA. -- Venezuela The decline in the value of the Bolivar versus the euro, which amounted to 17.1% compared with the average exchange rate for February 2004, was less than in previous months (-27.6% in December 2004, -24.8% in January 2005). At EUR24.2 million, cumulative revenues were 15.1% lower than in February 2004 (EUR28.5 million). At the same time, EBITDA doubled in absolute terms (EUR2.0 million, compared with EUR0.9 million in 2004) and improved from 3.1% to 8.3% as a percentage of revenues. The results reported in February, along with those of recent months, point to a turnaround for the Venezuelan companies, made possible by the recent implementation of reorganization and refocusing programs. However, this progress is being hampered by the social policies recently adopted by the Venezuelan government. -- Canada Revenues were sharply higher, rising to EUR188.8 million, or 20.0% more than the EUR157.4 million reported in February 2004. The gain in net revenues, made possible by the combined impact of higher unit sales and the price increases implemented at the beginning of the year, produced an improvement in EBITDA, which rose both in absolute terms (from EUR6.7 million to EUR12.3 million) and as a percentage of revenues (from 4.3% to 6.5%). An increase in sales days compared with February 2004 and a slight appreciation of the Canadian dollar versus the euro (+3.0% compared with the average exchange rate for February 2004) were also positive contributing factors. -- Australia At February 28, 2005, revenues were little changed from the EUR60.5 million booked last year. At EUR3.8 million (6.3% of revenues), EBITDA were slightly better than in February 2004 (EUR3.4 million, 5.6% of revenues). A more favorable product mix (sales of pasteurized cream, desserts and tea were lower, but shipments of pasteurized and UHT milk were higher) is the main reason for the increase in EBITDA in the face of flat revenues. In addition, the Australian dollar depreciated slightly against the euro compared with the same period last year (-3.7% compared with the average exchange rate for February 2004). Non-core Businesses In February 2005, the Group's Non-core Businesses reported revenues of EUR56.0 million, a decrease of 36.4% from pro forma revenues of EUR76.4 million in February 2004. However, even though net revenues were down, EBITDA improved from a negative EUR3.1 million to a positive EUR5.8 million, due mainly to an outstanding performance by the Parma Football Club. NET FINANCIAL POSITION Highlights (in EUR millions) Balance Balance Balance Balance as at as at as at as at 06/30/04 12/31/04 01/31/05 02/28/05 -------- -------- -------- -------- Short term financial assets (130.5) (368.2) (369.5) (341.0) broken down as: Financial assets not held as fixed assets (5.4) (0.4) (0.3) (0.3) Liquid assets (125.1) (367.7) (369.2) (340.6) Financial accrued income and prepaid expenses (incl. intra-Group) (55.0) (25.6) (17.1) (15.9) -------- -------- -------- -------- Total short-term financial assets (185.5) (393.8) (386.6) (356.9) ======== ======== ======== ======== Financial debts 11,408.0 11,386.7 11,273.5 11,238.3) Financial accrued expenses & deferred income 246.6 231.2 225.9 224.8 -------- -------- -------- -------- Total financial liabilities 11,654.6 11,617.9 11,499.4 11,463.1 Indebtedness owed to lenders outside the Group/ (Financial assets) of companies consolidated line-by-line 11,469.1 11,224.1 11,112.8 11,106.2 Indebtedness owed by companies consolidated line-by-line to companies that are parties to local composition-with- creditors proceedings 745.8 728.0 728.0 728.0 Indebtedness/ (Financial assets) of companies consolidated line-by-line 12,214.9 11,952.2 11,840.8 11,834.3 Indebtedness/ (Financial assets) of companies not consolidated line-by-line 4.3 6.9 6.9 6.9 -------- -------- -------- -------- Total indebtedness/ (financial assets) 12,219.2 11,959.0 11,847.7 11,841.1 ======== ======== ======== ======== At the end of February, the Group's total indebtedness showed little change from a month earlier (down from EUR11,847.7 million at January 31, 2005 to EUR11,841.1 million at February 28, 2005). Liquid assets decreased due to the repayment of indebtedness by Canadian, Australian and Portuguese companies. The Group's Portuguese operations benefited from a cancellation of a portion of their indebtedness thanks to a settlement reached with the involvement of Parmalat S.p.A. The combined indebtedness owed to lenders outside the Group by subsidiaries that are parties to local composition-with-creditors proceedings and, consequently, have been deconsolidated is not reflected in the net financial position shown above. At December 31, 2004, these borrowings totaled EUR2,484.4 million (EUR2,437.3 million at June 30, 2004). Because some of these borrowings are secured by guarantees provided by Parmalat S.p.A. and Parmalat Finanziaria S.p.A. in the amount of EUR1,668.1 million (EUR1,753.4 million at June 30, 2004), a reserve for risks of an amount equal to the guaranteed indebtedness (EUR1,675.2 million) was recognized in the consolidated financial statements at June 30, 2004. Based on currently available information, it would seem reasonable to adjust the reserve amount to EUR1,657.1 million. The consolidated financial statements also show that indebtedness owed by the Group to companies in special proceedings who are not consolidated line by line amounted to EUR728.0 million (EUR745.8 million at June 30, 2004). As of today, no amount has been drawn from the EUR105.8-million line of credit that a pool of banks provided to Parmalat S.p.A. on March 4, 2004, and later renewed until September 2, 2005. A breakdown of the net indebtedness owed to lenders outside the Group by companies consolidated line-by-line: (in EUR millions) Balance Balance Balance Balance as at as at as at as at 06/30/04 12/31/04 01/31/05 02/28/05 -------- -------- -------- -------- Companies in EA subject to proposed composition with creditors 10,084.0 9,928.8 9,819.2 9,826.5 Other companies in EA 42.8 106.7 99.6 102.6 Other companies 1,342.3 1,188.6 1,194.1 1,177.1 -------- -------- -------- -------- Total indebtedness/ (financial assets) 11,469.1 11,224.1 11,112.8 11,106.2 ======== ======== ======== ======== Companies in Extraordinary Administration The net indebtedness incurred by companies under extraordinary administration toward lenders outside the Group prior to their becoming eligible for extraordinary administration is all short- term, since all of these companies are in default of the covenants of the respective loan agreements. Liquid assets held by the companies included in the Proposal of Composition with Creditors decreased from EUR230.1 million at January 31, 2005 to EUR222.7 million at February 28, 2005, due mainly to loans provided to other Group companies. Other Companies The net indebtedness owed to lenders outside the Group by the remaining operating and financial companies, which are consolidated line by line but are not included in the extraordinary administration proceedings, improved slightly, decreasing from EUR1,194.1 million at January 31, 2005, to EUR1,177.1 million (including EUR692.9 million in long-term debt) at February 28, 2005. The comments provided on the performance of the individual companies show in greater detail the main changes that occurred in February 2005. Some Group companies are currently renegotiating their indebtedness in order to restructure it. Principal Companies Under Extraordinary Administration Financial highlights of the principal Italian companies under extraordinary administration: Parmalat Finanziaria SpA (Amounts in millions of Euros) Balance Balance Balance Balance as at as at as at as at 06/30/04 12/31/04 01/31/05 02/28/05 -------- -------- -------- -------- Short-term financial assets (140.0) (17.8) (18.4) (17.4) broken down as: Intra-Group loans receivable (138.8) (17.1) (17.1) (17.1) Financial assets not held as fixed assets (0.0) - - - Liquid assets (1.1) (0.7) (1.3) (0.3) Financial accrued Income and prepaid expenses (including intra-Group) - (0.1) - - -------- -------- -------- -------- Total short-term financial assets (140.0) (18.0) (18.4) (17.4) ======== ======== ======== ======== Financial liabilities (including intra-Group) 1,272.9 1,278.8 1,281.3 1,281.3 broken down as: Intra-Group loans payable 1,010.9 1,016.8 1,014.8 1,014.8 Other financial debts 262.0 262.0 266.5 266.5 Financial accrued Expenses and deferred income (including intra-Group) 4.7 4.7 - - -------- -------- -------- -------- Total financial liabilities 1,277.6 1,283.5 1,281.3 1,281.3 -------- -------- -------- -------- Total indebtedness/ (financial assets) 1,137.6 1,265.6 1,262.9 1,263.9 ======== ======== ======== ======== The indebtedness of Parmalat Finanziaria S.p.A. was virtually unchanged compared with the previous month. Parmalat SpA (Amounts in millions of Euros) Balance Balance Balance Balance as at as at as at as at 06/30/04 12/31/04 01/31/05 02/28/05 -------- -------- -------- -------- Short-term financial assets (61.7) (155.7) (143.5) (156.7) broken down as: Intra-Group loans receivable (38.6) (36.5) (33.7) (47.0) Financial assets not held as fixed assets - - - - Liquid assets (23.2) (119.2) (109.7) (109.7) Financial accrued Income and prepaid Expenses (including intra-Group) - (0.1) - - -------- -------- -------- -------- Total short-term financial assets (61.7) (155.8) (143.5) (156.7) ======== ======== ======== ======== Financial liabilities (including intra-Group) 4,144.1 3,891.6 3,776.6 3,766.7 broken down as: Intra-Group loans payable 1,266.2 1,007.0 1,007.0 997.2 Other financial debts 2,877.9 2,884.6 2,769.6 2,769.6 Financial accrued Expenses and deferred income (including intra-Group) - - - - -------- -------- -------- -------- Total financial liabilities 4,144.1 3,891.6 3,776.6 3,766.7 -------- -------- -------- -------- Total indebtedness/ (financial assets) 4,082.4 3,735.7 3,633.1 3,610.0 ======== ======== ======== ======== The decrease in indebtedness compared with the previous month reflects the offsetting among Group companies of debt positions that arose before the start of the extraordinary administration proceedings. The change that occurred in February 2005 in the amount of intra-Group loans receivable reflects the granting of two new loans to Parmalat Portugal SA (for EUR11.6 million) and to Latte Sole S.p.A. (for EUR1.6 million). The disbursement of these loans did not affect the company's liquidity because they were funded entirely from the regular cash flow from operations. Eurolat SpA (Amounts in millions of Euros) Balance Balance Balance Balance as at as at as at as at 06/30/04 12/31/04 01/31/05 02/28/05 -------- -------- -------- -------- Short-term financial assets (23.2) (8.7) (12.3) (7.8) broken down as: Intra-Group loans receivable - (2.2) (2.2) (2.2) Financial assets not held as fixed assets - - - - Liquid assets (23.2) (6.5) (10.1) (5.6) Financial accrued income and prepaid expenses (including intra-Group) - (0.1) (0.0) (0.1) -------- -------- -------- --------- Total short-term financial assets (23.2) (8.8) (12.3) (7.8) ======== ======== ======== ========= Financial liabilities (including intra-Group) 189.3 188.2 188.2 188.2 broken down as: Intra-Group loans payable 45.8 43.8 43.8 43.8 Other financial debts 143.5 144.4 144.4 144.4 Financial accrued expenses and deferred income (including intra-Group) 0.7 - - - -------- -------- -------- -------- Total financial liabilities 190.0 188.2 188.2 188.2 -------- -------- -------- -------- Total indebtedness/ (financial assets) 166.8 179.4 175.9 180.4 ======== ======== ======== ======== The liquid assets held by Eurolat S.p.A. decreased in February 2005. Lactis SpA (Amounts in millions of Euros) Balance Balance Balance Balance as at as at as at as at 06/30/04 12/31/04 01/31/05 02/28/05 -------- -------- -------- -------- Short-term financial assets (3.7) (4.4) (4.4) (4.2) broken down as: Intra-Group loans receivable - - - - Financial assets not held as fixed assets - - - - Liquid assets (3.7) (4.4) (4.4) (4.2) Financial accrued income and prepaid expenses (including intra-Group) (0.0) (0.0) (0.0) (0.0) -------- -------- -------- -------- Total short-term financial assets (3.7) (4.4) (4.4) (4.2) ======== ======== ======== ======== Financial liabilities (including intra-Group) 19.1 19.1 19.1 19.1 broken down as: Intra-Group loans payable 8.6 8.6 8.6 8.6 Other financial liabilities 10.5 10.5 10.5 10.5 Financial accrued expenses and deferred income (including intra-Group) - 0.0 0.0 0.0 -------- -------- -------- -------- Total financial liabilities 19.1 19.1 19.1 19.1 -------- -------- -------- -------- Total indebtedness/ (financial assets) 15.4 14.7 14.7 14.9 ======== ======== ======== ======== The indebtedness of Lactis S.p.A. at February 28, 2005 was unchanged compared with the previous month. Significant Events February 1 The Extraordinary Commissioner files an action to void pursuant to Article 67 of the Italian Bankruptcy Law against Morgan Stanley Limited and Morgan Stanley Bank. February 16 Lacteria SA sells Parmalat Uruguay SA. March 1 The Italian Minister of Production Activities, acting in concert with the Minister of Farming and Forestry Policies, approves certain amendments to the method of implementing the Restructuring Program of the Parmalat Group and to the Creditors Proposal. March 1 The Board of Directors of Parmalat S.p.A. (Assumptor) passes a resolution approving the amendments to the Proposal of Composition with Creditors that were authorized by the Minister of Production Activities, acting in concert with the Minister of Farming and Forestry Policies; approving drafts of the Prospectus, the 2005-2007 Industrial Plan of the Parmalat Group, the Memorandum on the Management Control System, the application to list the Company's shares and the request for clearance to publish the Prospectus; adopting a System of Corporate Governance, an Internal Dealing Code and a Code of Ethics for all Group companies; approving the Company's 2004 statutory financial statements; and agreeing to submit to the Stockholders' Meeting a motion to amend the Company's Bylaws. March 1 The Stockholders' Meeting of Parmalat S.p.A. (Assumptor) passes a resolution approving the Company's 2004 statutory financial statements; increasing the Company's capital stock; electing the Company's Board of Directors, Chairman and Statutory Auditors; and approving the application to list the shares and warrants of Parmalat S.p.A. (Assumptor). March 2 Parmalat Finanziaria S.p.A. publishes the final recovery ratios for the unsecured claims of creditors of the 16 companies in Extraordinary Administration party to the composition with Creditors Proposal. March 9 The Extraordinary Commissioner files an action to void pursuant to Article 67 of the Italian Bankruptcy Law against factoring companies and banks that had not been the target of previous actions to void announced on August 6, 2004, August 9, 2004, August 19, 2004, and December 16, 2004. March 15 The Board of Directors of Parmalat S.p.A. (Assumptor) appoints a Chief Executive Officer. March 15 The Stockholders' Meeting retains PricewaterhouseCoopers to audit the financial statements for 2005, 2006 and 2007, as required under Article 159 of Legislative Decree No. 58 of February 24, 1998, and agrees to amend the Company's Bylaws in accordance with the recommendations of Borsa Italiana S.p.A. Headquartered in Wallington, New Jersey, Parmalat U.S.A. Corporation -- http://www.parmalatusa.com/-- generates more than EUR7 billion in annual revenue. The Parmalat Group's 40- some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company employs over 36,000 workers in 139 plants located in 31 countries on six continents. It filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP represent the Debtors in their restructuring efforts. When the U.S. Debtors filed for bankruptcy protection, they reported more than $200 million in assets and debts. The Bankruptcy Court confirmed the U.S. Debtors' Plan of Reorganization on March 7, 2005. (Parmalat Bankruptcy News, Issue No. 49; Bankruptcy Creditors' Service, Inc., 215/945-7000) ROUGE INDUSTRIES: Files August 2004 Monthly Operating Report ------------------------------------------------------------ On April 1, 2005, Rouge Industries, Inc., and its wholly owned subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth Taconite Company, filed their August 2004 monthly operating report with the Securities and Exchange Commission. Substantially all of the Debtors' assets were acquired on January 30, 2004, by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement. The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004. As of August 31, 2004, the Company saw an ending cash balance of $97,971,423. A full-text copy of Rouge Industries, Inc.'s August 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/918577/000095012305003992/y07394aexv99w1.txt Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an integrated producer of flat-rolled steel, filed for chapter 11 protection on October 23, 2003 (Bankr. Del. Case No. 03-13272). Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $558,131,000 and total debts of $558,131,000. ROUGE INDUSTRIES: Files September 2004 Monthly Operating Report --------------------------------------------------------------- On April 1, 2005, Rouge Industries, Inc., and its wholly owned subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth Taconite Company, filed their September 2004 monthly operating report with the Securities and Exchange Commission. Substantially all of the Debtors' assets were acquired on Jan. 30, 2004, by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement. The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004. As of September 30, 2004, the Company saw an ending cash balance of $97,323,185. A full-text copy of Rouge Industries, Inc.'s September 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/918577/000095012305003995/y07394dexv99w1.txt Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an integrated producer of flat-rolled steel, filed for chapter 11 protection on October 23, 2003 (Bankr. Del. Case No. 03-13272). Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $558,131,000 and total debts of $558,131,000. ROUGE INDUSTRIES: Files October 2004 Monthly Operating Report ------------------------------------------------------------- On April 1, 2005, Rouge Industries, Inc., and its wholly owned subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth Taconite Company, filed their October 2004 monthly operating report with the Securities and Exchange Commission. Substantially all of the Debtors' assets were acquired on January 30, 2004, by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement. The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004. As of October 31, 2004, the Company saw an ending cash balance of $97,187,532. A full-text copy of Rouge Industries, Inc.'s October 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/918577/000095012305003997/y07394fexv99w1.txt Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an integrated producer of flat-rolled steel, filed for chapter 11 protection on October 23, 2003 (Bankr. Del. Case No. 03-13272). Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $558,131,000 and total debts of $558,131,000. ROUGE INDUSTRIES: Files November 2004 Monthly Operating Report -------------------------------------------------------------- On April 1, 2005, Rouge Industries, Inc., and its wholly owned subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth Taconite Company, filed their November 2004 monthly operating report with the Securities and Exchange Commission. Substantially all of the Debtors' assets were acquired on January 30, 2004, by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement. The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004. As of November 30, 2004, the Company saw an ending cash balance of $99,696,565. A full-text copy of Rouge Industries, Inc.'s November 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/918577/000095012305003993/y07394bexv99w1.txt Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an integrated producer of flat-rolled steel, filed for chapter 11 protection on October 23, 2003 (Bankr. Del. Case No. 03-13272). Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $558,131,000 and total debts of $558,131,000. ROUGE INDUSTRIES: Files December 2004 Monthly Operating Report -------------------------------------------------------------- On April 1, 2005, Rouge Industries, Inc., and its wholly owned subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth Taconite Company, filed their December 2004 monthly operating report with the Securities and Exchange Commission. Substantially all of the Debtors' assets were acquired on January 30, 2004, by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement. The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004. As of December 31, 2004, the Company saw an ending cash balance of $100,728,960. A full-text copy of Rouge Industries, Inc.'s December 2004 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/918577/000095012305003994/y07394cexv99w1.txt Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an integrated producer of flat-rolled steel, filed for chapter 11 protection on October 23, 2003 (Bankr. Del. Case No. 03-13272). Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $558,131,000 and total debts of $558,131,000. ROUGE INDUSTRIES: Files January 2005 Monthly Operating Report ------------------------------------------------------------- On April 1, 2005, Rouge Industries, Inc., and its wholly owned subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth Taconite Company, filed their January 2004 monthly operating report with the Securities and Exchange Commission. Substantially all of the Debtors' assets were acquired on January 30, 2004, by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement. The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004. As of January 31, 2005, the Company saw an ending cash balance of $100,288,673. A full-text copy of Rouge Industries, Inc.'s January 2005 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/918577/000095012305003998/y07394gexv99w1.txt Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an integrated producer of flat-rolled steel, filed for chapter 11 protection on October 23, 2003 (Bankr. Del. Case No. 03-13272). Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $558,131,000 and total debts of $558,131,000. ROUGE INDUSTRIES: Files February 2005 Monthly Operating Report -------------------------------------------------------------- On April 1, 2005, Rouge Industries, Inc., and its wholly owned subsidiaries, Rouge Steel Company, QS Steel, Inc., and Eveleth Taconite Company, filed their February 2004 monthly operating report with the Securities and Exchange Commission. Substantially all of the Debtors' assets were acquired on January 30, 2004, by SeverStal N.A. in exchange for cash and other consideration pursuant to the terms of the Asset Purchase Agreement. The APA was authorized by an order of the Court on December 2, 2003, subsequently amended and executed on January 30, 2004. As of February 28, 2005, the Company saw an ending cash balance of $100,848,095. A full-text copy of Rouge Industries, Inc.'s February 2005 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/918577/000095012305003996/y07394eexv99w1.txt Headquartered in Dearborn, Michigan, Rouge Industries, Inc., an integrated producer of flat-rolled steel, filed for chapter 11 protection on October 23, 2003 (Bankr. Del. Case No. 03-13272). Donna L. Harris, Esq., Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $558,131,000 and total debts of $558,131,000. SOLUTIA INC: Posts $316 Million Net Loss for Fiscal Year 2004 ------------------------------------------------------------- A full-text copy of Solutia's Annual Report on Form 10-K is available for free at: http://www.sec.gov/Archives/edgar/data/1043382/000106880005000162/sol10k.txt SOLUTIA INC. Statement of Consolidated Financial Position As of December 31, 2004 (In millions) ASSETS Current Assets: Cash and cash equivalents $115 Trade receivables, net 286 Miscellaneous receivables 93 Inventories 239 Prepaid expenses 45 ------- Total Current Assets 778 Property, Plant and Equipment, net 841 Investments in Affiliates 177 Goodwill, net 76 Identified Intangible Assets, net 38 Other assets 166 ------- TOTAL ASSETS $2,076 ======= LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities: Accounts payable $198 Accrued liabilities 283 Short-term debt 300 ------- Total Current Liabilities 781 Long-term debt 285 Other liabilities 267 ------- Total Liabilities Not Subject to Compromise 1,333 Liabilities Subject to Compromise 2,187 Total Shareholders' Deficit (1,444) ------- TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $2,076 ======= SOLUTIA INC. Statement of Consolidated Operations Year Ended December 31, 2004 (In Millions) NET SALES $2,697 Cost of goods sold 2,474 ------- Gross Profit 223 ------- Marketing expenses 143 Administrative expenses 102 Technological expenses 44 Amortization expense 2 Impairment of intangible assets 28 ------- Operating Income (Loss) (96) Equity earnings (loss) from affiliates, net of tax (26) Interest expense (113) Other income (expense), net 1 Loss on debt modification (15) Reorganization items, net (73) ------- Loss before income tax expense (benefit) (322) Income tax expense (benefit) (6) ------- Loss from continuing operations before discontinued operations and cumulative effect of change in accounting principle (316) Income (Loss) from Discontinued Operations - Cumulative Effect of Change in Accounting Principle - ------- NET LOSS ($316) ======= SOLUTIA INC. Statement Of Consolidated Cash Flows Year Ended December 31, 2004 (In millions) Cash & cash equivalents used in operating activities: Net loss ($316) Adjustments to reconcile to Cash From Operations: Cumulative effect of change in accounting principle - Depreciation and amortization 127 Loss (Income) from discontinued operations - Amortization of deferred credits (33) Settlement of Anniston litigation and other litigation matters - Impairment of intangible assets 28 Restructuring expenses and other charges 162 Other, net 4 Changes in assets and liabilities Income and deferred taxes (16) Trade receivables (5) Inventories 1 Accounts payable 120 Liabilities subject to compromise (34) Other assets and liabilities 3 ------- Cash provided by operations - continuing operations 41 Cash provided by operations - discontinued operations - ------- Cash provided by (used in) operations 41 ------- Investing activities: Property, plant and equipment purchases (61) Acquisition and investment payments, net (36) Property disposals and investment proceeds, net - ------- Cash used in investing activities - continuing (97) Cash used in investing activities - discontinued - ------- Cash provided by (used in) investing activities (97) ------- Financing Activities: Net change in short-term debt obligations (361) Proceeds from issuance of long-term debt obligations 300 Net change in cash collateralized letters of credit 87 Issuance of stock warrants - Deferred debt issuance costs (14) Dividend payments - Other, net - ------- Cash provided by financing activities - continuing 12 Cash used in financing activities - discontinued - ------- Cash provided by (Used in) financing activities 12 ------- Increase (Decrease) in cash and cash equivalents (44) Cash and Cash equivalents, beginning of year 159 ------- CASH AND CASH EQUIVALENTS, END OF YEAR $115 ======= Headquartered in St. Louis, Missouri, Solutia, Inc. -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. The Company filed for chapter 11 protection on December 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. Solutia is represented by Conor D. Reilly, Esq., and Richard M. Cieri, Esq., at Gibson, Dunn & Crutcher, LLP. (Solutia Bankruptcy News, Issue No. 35; Bankruptcy Creditors' Service, Inc., 215/945-7000) SOLUTIA INC: Earns $1 Million of Net Income in February 2005 ------------------------------------------------------------ Solutia Chapter 11 Debtors Unaudited Statement of Consolidated Financial Position As of February 28, 2005 ASSETS Current Assets: Cash $11,000,000 Trade Receivables, net 169,000,000 Account Receivables-Unconsolidated subsidiaries 51,000,000 Inventories 171,000,000 Other Current Assets 56,000,000 -------------- Total Current Assets 458,000,000 Property, Plant and Equipment, net 693,000,000 Investments in Affiliates 498,000,000 Intangible Assets, net 101,000,000 Other Assets 97,000,000 -------------- TOTAL ASSETS $1,847,000,000 ============== LIABILITIES AND SHAREHOLDERS' DEFICIT Current Liabilities Accounts Payable $178,000,000 Short Term Debt 300,000,000 Other Current Liabilities 136,000,000 -------------- Total Current Liabilities 614,000,000 Other Long-Term Liabilities 212,000,000 -------------- Total Liabilities Not Subject to Compromise 826,000,000 Liabilities Subject to Compromise 2,291,000,000 Shareholders' Deficit (1,270,000,000) -------------- TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $1,847,000,000 ============== Solutia Chapter 11 Debtors Unaudited Consolidated Statement of Operations For the Month Ended February 28, 2005 Total Net Sales $190,000,000 Total Cost Of Goods Sold 171,000,000 -------------- Gross Profit 19,000,000 Total MAT Expense 17,000,000 -------------- Operating Income 2,000,000 Equity Income from Affiliates 6,000,000 Interest Expense, net (5,000,000) Other Income, net 2,000,000 Reorganization Items: Professional fees (4,000,000) Adjustments to allowed claim amounts - -------------- Total Reorganization Items (4,000,000) -------------- Income Before Taxes 1,000,000 Income Tax - -------------- NET INCOME $1,000,000 ============== Headquartered in St. Louis, Missouri, Solutia, Inc. -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. The Company filed for chapter 11 protection on December 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed $2,854,000,000 in assets and $3,223,000,000 in debts. Solutia is represented by Conor D. Reilly, Esq., and Richard M. Cieri, Esq., at Gibson, Dunn & Crutcher, LLP. (Solutia Bankruptcy News, Issue No. 36; Bankruptcy Creditors' Service, Inc., 215/945-7000) TORCH OFFSHORE: Posts $3.9 Million Net Loss in February 2005 ------------------------------------------------------------ On March 25, 2005, Torch Offshore, Inc., and its wholly owned subsidiaries, Torch Offshore, L.L.C., and Torch Express, L.L.C., filed their monthly operating reports for the period February 1, 2005, through February 28, 2005, with the U.S. Bankruptcy Court for the Eastern District of Louisiana. Torch Offshore, Inc., reported a $3,698,839 net loss in $879,926 of total revenues for the period from Feb. 1, 2005, through Feb. 28, 2005. At Feb. 28, 2005, Torch Offshore, Inc.'s balance sheet shows: Current Assets $148,215,701 Total Assets 171,217,158 Total Postpetition Liabilities 4,416,011 Total Liabilities 131,846,675 Total Stockholders' Equity $39,370,483 A full-text copy of their Monthly Operating Reports for the period ended Feb. 28, 2005, are available at no charge at: Torch Offshore, Inc.: http://www.sec.gov/Archives/edgar/data/1129650/000095012905003083/h23956exv99w1.txt Torch Offshore, L.L.C.: http://www.sec.gov/Archives/edgar/data/1129650/000095012905003083/h23956exv99w2.txt Torch Express, L.L.C.: http://www.sec.gov/Archives/edgar/data/1129650/000095012905003083/h23956exv99w3.txt Headquartered in Gretna, Louisiana, Torch Offshore, Inc., provides integrated pipeline installation, sub-sea construction and support services to the offshore oil and gas industry, primarily in the Gulf of Mexico. The Company and its debtor-affiliates filed for chapter 11 protection (Bankr. E.D. La. Case No. 05-10137) on Jan. 7, 2005. Jan Marie Hayden, Esq., at Heller, Draper, Hayden, Patrick & Horn, L.L.C., and Lawrence A. Larose, Esq., at King & Spalding LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $201,692,648 in total assets and $145,355,898 in total debts. TRENWICK AMERICA: Posts $60 Million Net Loss in February 2005 ------------------------------------------------------------- On Mar. 21, 2005, Trenwick America Corporation filed its monthly operating report for the month ended Feb. 28, 2005, and the period from Aug. 20, 2003, to Feb. 28, 2005, with the United States Bankruptcy Court for the District of Delaware. Trenwick posts a $60,249,005 net loss in February 2005, and a cumulative $120,501,384 loss for the period from Aug. 20, 2003, to Feb. 28, 2005. At Feb. 28, 2005, Trenwick America's balance sheet showed: Total Current Assets $56,064,761 Total Assets 187,355,526 Total Prepetition Debts 288,386,386 Total Liabilities 293,123,565 Net Owner Equity Deficit ($105,768,039) A full-text copy of Trenwick America's February 2005 Monthly Operating Report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1127783/000116923205001984/d63236_ex99-1.txt Headquartered in Stamford, Connecticut, Trenwick America Corporation is a holding company for operating insurance companies in the United States. The Company filed for chapter 11 protection on August 20, 2003 (Bankr. Del. Case No. 03-12635). Christopher S. Sontchi, Esq., and William Pierce Bowden, Esq., at Ashby & Geddes, and Benjamin Hoch, Esq., Irena Goldstein, Esq., Carey D. Schreiber, Esq., at Dewey Ballantine LLP represent the Debtors in their restructuring efforts. As of June 30, 2003, the Debtor listed approximate assets of $400,000,000 and debts of $293,000,000. On August 20, 2003, Trenwick Group, Ltd., and LaSalle Re Holdings Limited also filed insolvency proceedings in the Supreme Court of Bermuda. On August 22, 2003, the Bermuda Court granted an order appointing Michael Morrison and John Wardrop, partners of KPMG in Bermuda and KPMG LLP in the United Kingdom, respectfully, as Joint Provisional Liquidators in respect of TGL and LaSalle. The Bermuda Court granted the JPLs the power to oversee the continuation and reorganization of these companies' businesses under the control of their boards of directors and under the supervision of the U.S. Bankruptcy Court and the Bermuda Court. TRINITY ENERGY: Releases January 2005 Operating Report ------------------------------------------------------ On Mar. 15, 2005, Trinity Energy Resources, Inc., filed its monthly operating report for the month ended January 2005 with the United States Bankruptcy Court for the Southern District of Texas, Houston Division. At Jan. 31, 2005, the Debtor's balance sheet showed: Total Current Assets $402,898 Total Assets 1,232,220 Total Liabilities 1,785,203 Total Owner's Equity Deficit $(552,983) A full-text copy of Trinity Energy's January 2005 monthly operating report is available at no charge at: http://www.sec.gov/Archives/edgar/data/1082292/000101540205001714/ex99_1.htm Headquartered in Houston, Texas, Trinity Energy Resources, Inc., develops and operates proven oil and gas reserves in the Rocky Mountains, Texas, and Louisiana, with international interests in the African Republic of Chad. The Company filed for chapter 11 protection on Jan. 31, 2003 (Bankr. S.D. Tex. Case No. 03-31453). John William Mahoney, Esq., at Williams Birnberg & Andersen represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $1,009,626 in total assets and $1,619,031 in total debts as of Sept. 30, 2002. On April 23, 2003, the Bankruptcy Court appointed Elizabeth M. Guffy as the Chapter 11 Trustee. WESTPOINT STEVENS: Posts $21.8 Million Net Loss in February 2005 ---------------------------------------------------------------- WESTPOINT STEVENS, INC. Balance Sheet At February 28, 2005 (in thousands) Assets Current Assets Cash and cash equivalents $3,703 Short-term investments - Accounts receivable, net 194,241 Inventories 287,723 Prepaid expenses and other current assets 19,048 ---------- Total current assets 504,715 Total investments and other assets 93,133 Goodwill - Property, Plant and Equipment, net 479,015 ---------- TOTAL ASSETS $1,076,863 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise: Senior Credit Facility $438,208 DIP Credit Agreement 59,687 Second lien facility 165,000 Accrued interest payable 1,458 Accounts payable - trade 46,507 Accounts payable - intercompany 172,270 Other accrued liabilities 116,974 Deferred income taxes 2,601 Pension and other liabilities 146,538 ---------- Total liabilities not subject to compromise 1,149,243 Liabilities Subject to Compromise Senior notes 1,000,000 Deferred financing fees (4,227) Accrued interest payable on Senior Notes 36,313 Accounts payable 27,557 Other payables and accrued liabilities 8,232 Pension and other liabilities 15,478 ---------- Total liabilities not subject to compromise 1,083,353 ---------- Total Liabilities 2,232,596 Shareholders' Equity (Deficit) Equity of subsidiaries (123,757) Common stock 711 Capital surplus/Treasury Stock 41,122 Retained earnings (deficit) (963,848) Minimum pension liability adjustment (109,403) Other adjustments (558) Unearned compensation - ---------- Stockholders' Equity (Deficit) (1,155,733) ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $1,076,863 ========== WESTPOINT STEVENS, INC. Statement of Operations Month Ended February 28, 2005 (in thousands) Total sales $97,243 Cost of sales 96,826 ---------- Gross profit 417 Selling and administrative expenses Selling expenses 3,565 Warehousing and shipping 5,010 Advertising 385 Division administrative expense 910 MIS expense 1,370 Corporate administrative expense 1,301 ---------- Total selling and administrative expense 12,541 Restructuring and impairment charge 89 Fixed asset impairment charge - Goodwill impairment charge - ---------- Profit (loss) from operations (12,213) Interest expense Interest expense - outside 6,538 Capitalized interest expense - Interest expense - intercompany 529 Interest income 2 Interest income - intercompany - ---------- Net interest expense 7,065 Other expense Miscellaneous 645 Royalties - intercompany 3,500 Transaction gain/loss - ---------- Total other expense 4,145 Other income Royalties - intercompany - Dividends - Sale of assets 73 Miscellaneous 11 ---------- Total other income 84 ---------- Net other expense 4,061 ---------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items (23,339) Chapter 11 reorganization expenses 1,336 Income tax expense (benefit) (2,878) Extraordinary item - net of taxes - ---------- Net Income (loss) ($21,797) ========== WESTPOINT STEVENS, INC. Statement of Cash Flows Month Ended February 28, 2005 (in thousands) Cash flows from operations: Net income (loss) ($21,797) Restructuring - Equity adjustments 2,302 Non-cash items Depreciation and amortization expense 11,604 Fixed asset impairment charge - Gain/(loss) on sale of assets 73 Working Capital Changes Decrease/(increase) - accounts receivable 1,094 Decrease/(increase) - inventories 3,885 Decrease/(increase) - other current assets 2,199 Decrease/(increase) - other non-current assets & debts 698 Increase/(decrease) - accounts payable (trade) (4,237) Increase/(decrease) - a/p (intercompany) 4,257 Increase/(decrease) - accrued liabilities (6,359) Increase/(decrease) - accrued interest payable 12 Increase/(decrease) - pension and other liabilities 1,015 Increase/(decrease) - deferred federal income tax (1,255) ---------- Total cash flows from operations (6,509) Cash flows from investing activities: Decrease/(increase) - short-term investments - Capital expenditures (412) Transfers - Net proceeds from sale of assets - ---------- Total cash flows from investing (412) Cash flows from financing activities: Increase/(decrease)- DIP Credit Agreement 8,534 ---------- Total cash flows from financing 8,534 Beginning cash balance 2,090 Change in cash 1,613 ---------- Ending cash balance $3,703 ========== Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/-- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. Chairman and CEO Holcombe Green controls 8% of WestPoint Stevens. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. (WestPoint Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: WP Stevens I Posts $3MM Net Income in February ----------------------------------------------------------------- WESTPOINT STEVENS, INC., I Balance Sheet At February 28, 2005 (in thousands) Assets Current Assets Cash and cash equivalents $34 Short-term investments - Accounts receivable - customers - Accounts receivable - intercompany 29,832 Total Inventories 5,870 Prepaid expenses and other current assets - ---------- Total current assets 35,736 Total investments and other assets 9,447 Goodwill - Property, Plant and Equipment, net 11,841 ---------- TOTAL ASSETS $57,024 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Senior Credit Facility - DIP Credit Agreement - Long-term debt classified as current - Accrued interest payable - Accounts payable - trade $692 Accounts payable - intercompany - Other accrued liabilities 11,460 Deferred income taxes - Pension and other liabilities - ---------- Total Liabilities Not Subject to Compromise 12,152 Liabilities Subject to Compromise Senior notes - Deferred financing fees - Accrued interest payable on Senior Notes - Accounts payable 1,438 Other payables and accrued liabilities - Pension and other liabilities 3,445 ---------- Total Liabilities Subject to Compromise 4,883 ---------- Total Liabilities 17,035 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 1 Capital surplus/Treasury Stock 70,559 Retained earnings (deficit) (30,571) Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Shareholders' Equity (Deficit) 39,989 ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $57,024 ========== WESTPOINT STEVENS, INC., I Statement of Operations Month Ended February 28, 2005 (in thousands) Net sales $3,170 Cost of goods sold 1,902 ---------- Gross earnings 1,268 Selling and administrative expenses Selling expenses 1 Warehousing and shipping 147 Advertising - Division administrative expense - MIS expense - Corporate administrative expense 170 ---------- Total selling and administrative expense 318 Restructuring and impairment charge - Goodwill impairment charge - ---------- Operating earnings (loss) 950 Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany - Interest income 1 Interest income - intercompany 575 ---------- Net interest expense (576) Other expense Miscellaneous - Royalties - intercompany 190 Transaction gain/loss - ---------- Total other expense 190 Other income Royalties - intercompany 3,500 Dividends - Sale of assets - Miscellaneous - ---------- Total other income 3,500 ---------- Net other expense (3,310) ---------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items 4,836 Chapter 11 reorganization expenses - Income tax expense (benefit) 1,689 Extraordinary item - net of taxes - ---------- Net Income (loss) $3,147 ========== WESTPOINT STEVENS, INC., I Statement of Cash Flows Month Ended February 28, 2005 (in thousands) Cash flows from operations: Net income (loss) $3,147 Non-cash items Depreciation and amortization expense 112 Working Capital Changes Decrease/(increase) - a/r (customers) - Decrease/(increase) - a/r (intercompany) (4,709) Decrease/(increase) - inventories (947) Decrease/(increase) - other current assets - Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) (89) Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities 2,484 Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - ---------- Total cash flows from operations (2) Cash flows from investing activities: Decrease/(increase) short term investments - Capital expenditures - Transfers - Net proceeds from sale of assets - ---------- Total cash flows from investing - Cash flows from financing activities: Increase/(decrease)- DIP Credit Agreement - ---------- Total cash flows from financing - Beginning cash balance 36 Change in cash (2) ---------- Ending cash balance $34 ========== Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/-- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. Chairman and CEO Holcombe Green controls 8% of WestPoint Stevens. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. (WestPoint Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: WP Stevens Stores' February Operating Report --------------------------------------------------------------- WESTPOINT STEVENS STORES, INC. Balance Sheet At February 28, 2005 (in thousands) Assets Current Assets Cash and cash equivalents $1,140 Short-term investments - Accounts receivable - customers 63 Accounts receivable - intercompany 3,195 Total Inventories 19,098 Prepaid expenses and other current assets 894 --------- Total current assets 24,390 Total investments & other assets - Goodwill - Property, plant and equipment, net 2,371 --------- TOTAL ASSETS $26,761 ========= Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Accounts payable - trade $377 Accounts payable -intercompany - Other accrued liabilities 1,736 Deferred income taxes - Pension and other liabilities - --------- Total Liabilities Not Subject to Compromise 2,113 --------- Liabilities Subject to Compromise Accounts payable 1,677 --------- Total Liabilities 3,790 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 1 Capital surplus/Treasury Stock 15,955 Retained earnings (deficit) 7,015 Minimum pension liability adjustment - Other adjustments - Unearned compensation - --------- Stockholders' Equity (Deficit) 22,971 --------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $26,761 ========= WESTPOINT STEVENS STORES, INC. Statement of Operations Month Ended February 28, 2005 (in thousands) Net sales $5,748 Cost of goods sold 3,469 --------- Gross earnings 2,279 Selling and administrative expenses Selling expenses 1,895 Warehousing and shipping 175 Advertising 215 Division administrative expense 316 MIS expense 54 Corporate administrative expense 84 --------- Total selling and administrative expense 2,739 Restructuring and impairment charge - Goodwill impairment charge - --------- Operating earnings (loss) (460) Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany 155 Interest income - Interest income - intercompany - --------- Net interest expense 155 Other expense Miscellaneous - Royalties - intercompany - Transaction gain/loss - --------- Total other expense - Other income Royalties Intercompany - Dividends - Sale of assets - Miscellaneous - --------- Total other income - --------- Net other expense - --------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items (615) Chapter 11 reorganization expenses - Income tax expense (benefit) (215) Extraordinary item - net of taxes - --------- Net Income (loss) ($400) ========= WESTPOINT STEVENS STORES, INC. Statement of Cash Flows Month Ended February 28, 2005 (in thousands) Cash flows from operations: Net income (loss) ($400) Non-cash items Depreciation and amortization 47 Working Capital Changes Decrease/(increase) - a/r (customers) (13) Decrease/(increase) - a/r (intercompany) 878 Decrease/(increase) - inventories (563) Decrease/(increase) - other current assets (32) Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) (62) Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities 178 Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - --------- Total cash flows from operations 33 Cash flows from investing activities Capital expenditures (23) Transfers - Net proceeds from sale of assets - --------- Total cash flows from investing (23) Cash flows from financing activities Increase/(decrease)- DIP Credit Agreement - --------- Total cash flows from financing - Beginning cash balance 1,130 Change in cash 10 --------- Ending cash balance $1,140 ========= Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/-- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. Chairman and CEO Holcombe Green controls 8% of WestPoint Stevens. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. (WestPoint Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: JP Stevens & Co.'s February Operating Report --------------------------------------------------------------- J.P. STEVENS & CO., INC. Balance Sheet At February 28, 2005 (in thousands) Assets Current Assets Cash and cash equivalents - Short-term investments - Accounts receivable - customers - Accounts receivable - intercompany $110,749 Prepaid expenses and other current assets - ---------- Total current assets 110,749 Total investments & other assets 2,697 Goodwill - ---------- TOTAL ASSETS $113,446 ========== Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise Accounts payable - intercompany - Other accrued liabilities - Deferred income taxes - Pension and other liabilities - ---------- Total Liabilities Not Subject to Compromise - Liabilities Subject to Compromise - Shareholders' Equity (Deficit) Equity of subsidiaries $10,503 Common stock - Capital surplus/Treasury Stock - Retained earnings (deficit) 102,943 Minimum pension liability adjustment - Other adjustments - Unearned compensation - ---------- Stockholders' Equity (Deficit) 113,446 ---------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $113,446 ========== J.P. Stevens & Co., Inc., reports no income and cash flow for February 2005. Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/-- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. Chairman and CEO Holcombe Green controls 8% of WestPoint Stevens. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. (WestPoint Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-7000) WESTPOINT STEVENS: JP Stevens Enterprises' Feb. Operating Report ---------------------------------------------------------------- J.P. STEVENS ENTERPRISES, INC. Balance Sheet At February 28, 2005 (in thousands) Assets Current Assets Cash and cash equivalents $13 Short-term investments - Accounts receivable - customers, net - Accounts receivable - intercompany 17,683 Prepaid expenses and other current assets - --------- Total current assets 17,696 Total investments & other assets - Goodwill - --------- TOTAL ASSETS $17,696 ========= Liabilities and Stockholders' Equity (Deficit) Liabilities Not Subject to Compromise: Accounts payable - intercompany - Other accrued liabilities $386 Deferred income taxes - Pension and other liabilities - --------- Total Liabilities Not Subject to Compromise 386 Liabilities Subject to Compromise - --------- Total Liabilities 386 Shareholders' Equity (Deficit) Equity of subsidiaries - Common stock 2 Capital surplus/Treasury Stock - Retained earnings (deficit) 17,308 Minimum pension liability adjustment - Other adjustments - Unearned compensation - --------- Stockholders' Equity (Deficit) 17,310 --------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $17,696 ========= J.P. STEVENS ENTERPRISES, INC. Statement of Operations Month Ended February 28, 2005 (in thousands) Net sales - Cost of goods sold - --------- Gross earnings - Selling and administrative expenses Selling expenses - Warehousing and shipping - Advertising - Division administrative expense - MIS expense - Corporate administrative expense - --------- Total selling and administrative expense - Restructuring and impairment charge - Goodwill impairment charge - --------- Operating earnings (loss) - Interest expense Interest expense - outside - Capitalized interest expense - Interest expense - intercompany - Interest income - Interest income - intercompany 82 --------- Net interest expense (82) Other expense Miscellaneous - Royalties - intercompany - Transaction gain/loss - --------- Total other expense - Other income Royalties - intercompany 190 Dividends - Sale of assets - Miscellaneous - --------- Total other income 190 --------- Net other expense (190) --------- Income (loss) before Chapter 11 reorganization expenses and income taxes (benefit) and extraordinary items 272 Chapter 11 reorganization expenses - Income tax expense (benefit) 95 Extraordinary item - net of taxes - --------- Net Income (loss) $177 ========= J.P. STEVENS ENTERPRISES, INC. Statement of Cash Flows Month Ended February 28, 2005 (in thousands) Cash flows from operations: Net income (loss) $177 Non-cash items Depreciation and amortization - Working Capital Changes Decrease/(increase) - a/r (intercompany) (269) Decrease/(increase) - inventories - Decrease/(increase) - other current assets - Decrease/(increase) - other non-current assets - Increase/(decrease) - accounts payable (trade) - Increase/(decrease) - a/p (intercompany) - Increase/(decrease) - accrued liabilities 95 Increase/(decrease) - accrued interest payable - Increase/(decrease) - pension & other liabilities - Increase/(decrease) - deferred federal income tax - --------- Total cash flows from operations 3 Cash flows from investing activities Capital expenditures - Net proceeds from sale of assets - --------- Total cash flows from investing - Cash flows from financing activities Increase/(decrease)- DIP Credit Agreement - --------- Total cash flows from financing - Beginning cash balance 10 Change in cash 3 --------- Ending cash balance $13 ========= Headquartered in West Point, Georgia, WestPoint Stevens, Inc., -- http://www.westpointstevens.com/-- is the #1 US maker of bed linens and bath towels and also makes comforters, blankets, pillows, table covers, and window trimmings. It makes the Martex, Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux brands, as well as the Martha Stewart bed and bath lines; other licensed brands include Ralph Lauren, Disney, and Joe Boxer. Department stores, mass retailers, and bed and bath stores are its main customers. (Federated, J.C. Penney, Kmart, Sears, and Target account for more than half of sales.) It also has nearly 60 outlet stores. Chairman and CEO Holcombe Green controls 8% of WestPoint Stevens. The Company filed for chapter 11 protection on June 1, 2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. (WestPoint Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., 215/945-7000) US AIRWAYS: Posts $119 Million Net Loss in February 2005 -------------------------------------------------------- US Airways Group, Inc. Consolidated Balance Sheet At February 28, 2005 (in thousands) Current Assets: Cash and cash equivalents $405,534 Restricted cash 111,817 Receivables, net 305,400 Materials and supplies, net 165,504 Prepaid expenses and other 171,362 ---------- Total Current Assets 1,159,617 Property and Equipment: Flight equipment 3,299,622 Ground property and equipment 362,397 Less accumulated depreciation and amortization (341,825) ---------- 3,403,041 Purchase deposits for flight equipment 82,847 ---------- Total Property and Equipment 3,403,041 Other Assets: Goodwill 2,489,638 Other intangibles, net 526,954 Restricted cash 622,269 Other assets, net 91,509 ---------- Total Other Assets 3,730,370 ---------- Total Assets $8,293,028 ========== Current Liabilities: Current maturities of long-term debt and capital lease obligations $741,397 Accounts payable 404,972 Traffic balances payable and unused tickets 955,874 Accrued aircraft rent 9,616 Accrued salaries, wages and vacation 167,813 Other accrued expenses 301,809 ---------- Total Current Liabilities 2,581,481 Noncurrent Liabilities and Deferred Credits: Long-term debt and capital lease obligations, net of current maturities 73,760 Deferred gains and credits, net 42,762 Postretirement benefits other than pensions 1,906 Employee benefit liabilities and other 241,975 ---------- Total Noncurrent Liabilities and Deferred Credits 360,674 Liabilities Subject to Compromise 5,064,674 Commitments and Contingencies: Stockholders' Deficit: Class A Common Stock 50,616 Class B Common Stock 5,000 Paid-in capital 410,133 Accumulated deficit (183,870) Common stock held in treasury, at cost (2,815) Deferred compensation (10,647) Accumulated other comprehensive income 18,054 ---------- Total Stockholders' Deficit 286,470 ---------- Total Liabilities & Stockholders' Equity (Deficit) $8,293,028 ========== US Airways Group, Inc. Consolidated Statement of Operations Month ended February 28, 2005 (in thousands) Operating Revenues: Passenger transportation $443,460 Cargo and freight 7,567 Other 54,973 ---------- Total Operating Revenues 506,000 Operating Expenses: Personnel costs 156,440 Aviation fuel 114,405 US Airways Express capacity purchases 62,403 Aircraft rent 36,089 Other rent and landing fees 46,763 Selling expenses 39,398 Aircraft maintenance 29,163 Depreciation and amortization 18,764 Other 88,664 ---------- Total Operating Expenses 591,664 Operating Loss (85,664) Other Income (Expense): Interest income 827 Interest expense, net (26,737) Reorganization items, net (8,247) Other, net 599 ---------- Other Income (Expense), Net (33,558) Loss Before Income Taxes (119,222) Income Tax Benefit 0 ---------- Net Loss ($119,222) ========== US Airways Group, Inc. Consolidated Statement of Cash Flows Month ended February 28, 2005 (in thousands) Cash flows from operating activities: Net cash used for operating activities before reorganization items ($27,802) Reorganization items, net (2,754) ---------- Net cash used for operating activities (30,556) Cash flows from investing activities: Capital expenditures and purchase deposits for flight equipment, net (1,825) Proceeds from dispositions of property 1,049 Increase in restricted cash (78,886) Other 0 ---------- Net cash used for investing activities (76,012) Cash flows from financing activities: Proceeds from issuance of long-term debt 5,724 Principal payments on long-term debt and capital lease obligations (36,685) ---------- Net cash used for financing activities (30,961) Net decrease in Cash and cash equivalents (137,529) ---------- Cash and cash equivalents at beginning of period 543,063 ---------- Cash and cash equivalents at end of period $405,534 ========== Headquartered in Arlington, Virginia, US Airways' primary business activity is the ownership of the common stock of: * US Airways, Inc., * Allegheny Airlines, Inc., * Piedmont Airlines, Inc., * PSA Airlines, Inc., * MidAtlantic Airways, Inc., * US Airways Leasing and Sales, Inc., * Material Services Company, Inc., and * Airways Assurance Limited, LLC. Under a chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for $240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on September 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists $8,805,972,000 in total assets and $8,702,437,000 in total debts. (US Airways Bankruptcy News, Issue No. 87; Bankruptcy Creditors' Service, Inc., 215/945-7000) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. 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