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T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, September 17, 2005, Vol. 9, No. 221
Headlines
ACCEPTANCE INSURANCE: Aug. 31 Balance Sheet Upside-Down by $105MM
AOL LATIN: Files Monthly Operating Report for June 2005
AOL LATIN: Files Monthly Operating Report for July 2005
MIRANT CORP: Earns $75.5 Million of Net Income in July 2005
MIRANT CORP: MAGi Earns $26.8 Million of Net Income in July 2005
SOLUTIA INC: Earns $2 Million of Net Income in July 2005
*********
ACCEPTANCE INSURANCE: Aug. 31 Balance Sheet Upside-Down by $105MM
-----------------------------------------------------------------
On Sept. 6, 2005, Acceptance Insurance Companies Inc. filed its
monthly operating report for August 2005 with the U.S. Bankruptcy
Court for the District of Nebraska.
The Debtor reports a $9,805 net loss on $6,820 of revenue for Aug.
2005.
At Aug. 31, 2005, Acceptance Insurance Companies Inc.'s balance
sheet showed:
Total Current Assets $2,692,867
Total Assets 33,259,464
Total Liabilities 138,187,553
Total Shareholders' Equity Deficit ($104,928,089)
A full-text copy of Acceptance Insurance Companies Inc.'s August
2005 Monthly Operating Report is available at no charge at
http://ResearchArchives.com/t/s?18c
Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies Inc. -- http://www.aicins.com/-- owns, either directly
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups. The Company filed
for chapter 11 protection on Jan. 7, 2005 (Bankr. D. Nebr. Case
No. 05-80059). The Debtor's affiliates -- Acceptance Insurance
Services, Inc., and American Agrisurance, Inc. -- filed separate
chapter 7 petitions (Bankr. D. Nebr. Case Nos. 05-80056 & 05-
80058) on Jan. 7, 2005. John J. Jolley, Esq., at Kutak Rock LLP,
represents the Debtor in its restructuring efforts. When the
Debtor filed for protection from its creditors, it listed
$33,069,446 in total assets and $137,120,541 in total debts.
AOL LATIN: Files Monthly Operating Report for June 2005
-------------------------------------------------------
On Sept. 6, 2005, America Online Latin America, Inc., and its
debtor-affiliates, filed their monthly operating report for the
period ended June 30, 2005, with the United States Bankruptcy
Court for the District of Delaware.
For the month ending June 30, 2005, the Company's Income Statement
shows:
Net Income/
Revenue Net Loss
------- -----------
America Online Latin America, Inc. $0 ($508,410)
AOL Latin America Management, LLC $501,866 $220,957
AOL Puerto Rico Management Services, Inc. $19,046 ($35,536)
America Online Caribbean Basin, Inc. $251,791 $65,346
At June 30, 2005, the Company's Balance Sheet shows:
America Online Latin America, Inc.
__________________________________
Current Assets $20,730,794
Total Assets 706,817,332
Current Liabilities 6,657,558
Total Liabilities 166,657,558
Total Stockholders' Equity $540,159,774
AOL Latin America Management, LLC
_________________________________
Current Assets $4,179,121
Total Assets 4,710,165
Current Liabilities 18,434,516
Total Liabilities 18,434,516
Total Stockholders' Deficit ($13,723,901)
AOL Puerto Rico Management Services, Inc.
_________________________________________
Current Assets ($231,894)
Total Assets (74,307)
Current Liabilities 5,284,672
Total Liabilities 5,308,665
Total Stockholders' Equity Deficit ($5,382,633)
America Online Caribbean Basin, Inc.
____________________________________
Current Assets $16,142,365
Total Assets 16,157,565
Current Liabilities (2,059,667)
Total Liabilities (2,059,667)
Total Stockholders' Equity Deficit 18,217,232
A full-text copy of America Online Latin America, Inc., and its
debtor-affiliates' Monthly Operating Report for the period ended
June 30, 2005, is available at no charge at:
http://ResearchArchives.com/t/s?18b
Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc. -- http://www.aola.com/-- offers AOL-branded
Internet service in Argentina, Brazil, Mexico, and Puerto Rico, as
well as localized content and online shopping over its proprietary
network. Principal shareholders in AOLA are Cisneros Group, one
of Latin America's largest media firms, Brazil's Banco Itau, and
Time Warner, through America Online. The Company and its debtor-
affiliates filed for chapter 11 protection on June 24, 2005
(Bankr. D. Del. Case No. 05-11778). Pauline K. Morgan, Esq., and
Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor, LLP and
Douglas P. Bartner, Esq., at Shearman & Sterling LLP represent the
Debtors in their restructuring efforts. When the Debtors filed
for protection from their creditors, they listed total assets of
$28,500,000 and total debts of $181,774,000.
AOL LATIN: Files Monthly Operating Report for July 2005
-------------------------------------------------------
On Sept. 12, 2005, America Online Latin America, Inc., and its
debtor-affiliates, filed their monthly operating report for the
period ended July 31, 2005, with the United States Bankruptcy
Court for the District of Delaware.
For the month ending July 31, 2005, the Company's Income Statement
shows:
Net Income/
Revenue Net Loss
------- -----------
America Online Latin America, Inc. $0 ($758,853)
AOL Latin America Management, LLC $870,392 $548,121
AOL Puerto Rico Management Services, Inc. $85,327 ($194,553)
America Online Caribbean Basin, Inc. $1,165,894 $547,085
At July 31, 2005, the Company's balance sheet shows:
America Online Latin America, Inc.
__________________________________
Current Assets $20,382,246
Total Assets 705,660,001
Current Liabilities 6,259,080
Total Liabilities 166,259,080
Total Stockholders' Equity $539,400,921
AOL Latin America Management, LLC
_________________________________
Current Assets $477,281
Total Assets 1,007,753
Current Liabilities 14,183,532
Total Liabilities 14,183,532
Total Stockholders' Deficit ($13,175,779)
AOL Puerto Rico Management Services, Inc.
_________________________________________
Current Assets ($446,276)
Total Assets (288,689)
Current Liabilities 5,266,102
Total Liabilities 5,288,838
Total Stockholders' Equity Deficit ($5,577,187)
America Online Caribbean Basin, Inc.
____________________________________
Current Assets $18,567,296
Total Assets 18,583,146
Current Liabilities (181,171)
Total Liabilities (181,171)
Total Stockholders' Equity Deficit $18,764,316
A full-text copy of America Online Latin America, Inc., and its
debtor-affiliates' Monthly Operating Report for the period ended
July 31, 2005, is available at no charge at:
http://ResearchArchives.com/t/s?18d
Headquartered in Fort Lauderdale, Florida, America Online Latin
America, Inc. -- http://www.aola.com/-- offers AOL-branded
Internet service in Argentina, Brazil, Mexico, and Puerto Rico, as
well as localized content and online shopping over its proprietary
network. Principal shareholders in AOLA are Cisneros Group, one
of Latin America's largest media firms, Brazil's Banco Itau, and
Time Warner, through America Online. The Company and its debtor-
affiliates filed for chapter 11 protection on June 24, 2005
(Bankr. D. Del. Case No. 05-11778). Pauline K. Morgan, Esq., and
Edmon L. Morton, Esq., at Young Conaway Stargatt & Taylor, LLP and
Douglas P. Bartner, Esq., at Shearman & Sterling LLP represent the
Debtors in their restructuring efforts. When the Debtors filed
for protection from their creditors, they listed total assets of
$28,500,000 and total debts of $181,774,000.
MIRANT CORP: Earns $75.5 Million of Net Income in July 2005
-----------------------------------------------------------
Mirant Corporation and Subsidiaries
Consolidated Balance Sheet
As of July 31, 2005
ASSETS
Cash and cash equivalents $1,481,789,866
Accounts receivable - net 826,781,675
Assets from risk management activities 439,972,207
Derivative hedging instruments -
Inventories 360,328,254
Other 974,674,245
--------------
Total Current Assets 4,083,546,247
Property, plant and equipment 5,225,709,210
Less: accumulated depreciation/depletion 933,089,734
Leasehold interests - net 1,453,483,021
Construction work in progress 178,129,740
Investment in suspended construction 174,898,955
--------------
Total net property, plant and equipment 6,099,131,192
Investments 257,526,393
Long-term accounts receivable - net 48,644,302
Notes receivable - net -
Assets from risk management activities 145,093,727
Goodwill - net 5,767,352
Other intangibles - net 264,791,294
Derivative hedging instruments -
Restricted cash, non-current 187,543,291
Other long-term assets 69,040
Miscellaneous deferred charges 468,027,984
--------------
Total Non-current Assets 1,377,463,383
--------------
TOTAL ASSETS $11,560,140,822
==============
LIABILITIES AND EQUITY
Postpetition Liabilities:
Debt $1,219,469,079
Accounts Payable 622,496,805
Liabilities from risk management activities 620,619,004
Obligations under energy deliveries 7,252,069
Derivative hedging instruments -
Other 225,580,636
Miscellaneous deferred credits 733,202,055
--------------
Total postpetition liabilities 3,428,619,648
Prepetition Liabilities 9,189,739,226
-------------
TOTAL LIABILITIES 12,618,358,874
EQUITY:
Minority interest in subsidiaries 170,234,552
Mandatory redeemable securities -
Common stock 4,056,621
Additional paid-in capital 4,917,965,790
Retained earnings (6,078,032,499)
Treasury stock, at cost (2,260,000)
Accumulated other comprehensive income (70,182,516)
--------------
Total Equity ($1,058,218,052)
---------------
TOTAL LIABILITIES AND OWNERS' EQUITY $11,560,140,822
===============
Mirant Corporation and Subsidiaries
Consolidated Statements of Income
For the month ending July 31, 2005
REVENUES:
Generation $313,619,438
Net trading revenue (217,295)
Distribution 65,574,344
Other 889,956
---------------
Net Revenue 379,866,443
OPERATING EXPENSES:
Energy cost 171,807,443
Operations and maintenance 82,775,939
Depreciation and amortization 25,577,749
Gain on sale of property and investment (14,712)
Impairment loss 33,313
Restructuring costs 156,420
---------------
Total Operating Expenses 280,336,152
---------------
Income before non-operating income
and expense 99,530,291
OTHER INCOME AND EXPENSES:
Interest income 4,182,983
Interest expense (10,344,490)
Equity in income of affiliates 2,009,240
Other (52,723)
Reorganization items (10,068,373)
Minority interest (2,388,968)
Net income from discontinued operations (165,922)
Gain on sale assets, minority owned -
---------------
Total Other Income (16,828,253)
Provision for income tax (7,161,297)
---------------
NET PROFIT (LOSS) $75,540,741
===============
Mirant Corporation
Unconsolidated Cash Receipts and Disbursements
For the month ending July 31, 2005
Cash, beginning of month $236,068,396
Non-Operating Receipts:
Loans & Advances $26,348,533
Sale of Assets -
---------------
Total non-operating receipts 26,348,533
---------------
Total receipts 26,348,533
---------------
Total Cash Available 262,416,929
Operating Disbursements 0
Reorganization Expenses
---------------
Total disbursements 0
---------------
Net Cash Flow 26,348,533
---------------
Cash, end of month $262,416,929
===============
Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally. Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590). Thomas E. Lauria, Esq., at White &
Case LLP, represents the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed $20,574,000,000 in assets and $11,401,000,000 in debts.
(Mirant Bankruptcy News, Issue No. 76; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
MIRANT CORP: MAGi Earns $26.8 Million of Net Income in July 2005
----------------------------------------------------------------
Mirant Americas Generation, LLC, and Subsidiaries
Consolidated Balance Sheet
As of July 31, 2005
ASSETS
Cash and cash equivalents $478,268,792
Accounts receivable - net 507,460,930
Assets from risk management activities 24,560,179
Derivative hedging instruments -
Inventories 155,241,623
Other 117,563,837
---------------
Total Current Assets 1,283,095,361
Property, plant and equipment 2,211,020,317
Less: accumulated depreciation/depletion 380,216,611
Leasehold interests - net -
Construction work in progress 109,606,452
Investment in suspended construction 173,998,955
---------------
Total net property, plant and equipment 2,114,409,113
Investments 25,000
Long-term accounts receivable - net 92,171,429
Notes receivable - net 223,275,000
Assets from risk management activities 23,335,401
Other intangibles - net 202,559,941
Derivative hedging instruments -
Restricted cash, non-current 5,108,815
Other long-term assets -
Miscellaneous deferred charges 248,507,108
---------------
Total Non-current Assets 794,982,694
---------------
TOTAL ASSETS $4,192,487,168
===============
LIABILITIES AND EQUITY
Postpetition Liabilities:
Debt -
Accounts Payable 237,953,349
Liabilities from risk management activities 99,376,266
Obligations under energy deliveries -
Derivative hedging instruments -
Other 170,606,295
Miscellaneous deferred credits 42,113,044
---------------
Total postpetition liabilities 550,048,954
Prepetition Liabilities 3,234,021,659
---------------
TOTAL LIABILITIES 3,784,070,613
EQUITY:
Minority interest in subsidiaries 35,002
Mandatory redeemable securities -
Common stock 1,000
Additional paid-in capital 3,853,859,365
Retained earnings (3,445,478,812)
Treasury stock, at cost -
Accumulated other comprehensive income -
---------------
Total Equity 408,416,555
---------------
TOTAL LIABILITIES AND OWNERS' EQUITY $4,192,487,168
===============
Mirant Americas Generation, LLC, and Subsidiaries
Consolidated Statements of Income
For the month ending July 31, 2005
REVENUES:
Generation $232,818,508
Net trading revenue -
Distribution -
Other 93,576
---------------
Net Revenue 232,912,084
OPERATING EXPENSES:
Energy cost 151,788,720
Operations and maintenance 47,795,235
Depreciation and amortization 7,555,622
Gain on sale of property and investment -
Impairment loss 33,313
Restructuring costs 107,644
---------------
Total Operating Expenses 207,280,534
---------------
Income before non-operating income
and expense 25,631,550
OTHER INCOME AND EXPENSES:
Interest income 1,610,091
Interest expense (1,121,460)
Equity in income of affiliates -
Other 269,667
Reorganization items 877,566
Minority interest -
Net income from discontinued operations -
---------------
Total Other Income 1,635,864
Provision for income tax (453,770)
---------------
NET PROFIT (LOSS) $26,813,644
===============
Mirant Americas Generation, LLC, and Subsidiaries
Unconsolidated Cash Receipts and Disbursements
For the month ending July 31, 2005
Cash, beginning of month $183,871,034
Non-Operating Receipts:
Loans & Advances 1,244,974
Sale of Assets -
---------------
Total non-operating receipts 1,244,974
---------------
Total receipts 1,244,974
---------------
Total Cash Available 185,116,008
Operating Disbursements 0
Reorganization Expenses 0
---------------
Total disbursements 0
---------------
Net Cash Flow $1,244,974
---------------
Cash, end of month $185,116,008
===============
Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally. Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590). Thomas E. Lauria, Esq., at White &
Case LLP, represents the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed $20,574,000,000 in assets and $11,401,000,000 in debts.
(Mirant Bankruptcy News, Issue No. 76; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
SOLUTIA INC: Earns $2 Million of Net Income in July 2005
--------------------------------------------------------
Solutia Chapter 11 Debtors
Unaudited Statement of Consolidated Financial Position
As of July 31, 2005
Assets
Current assets:
Cash $18,000,000
Trade Receivables, net 155,000,000
Account Receivables-Unconsolidated Subsidiaries 48,000,000
Inventories 156,000,000
Other Current Asset 54,000,000
--------------
Total Current Assets 431,000,000
Property, Plant and Equipment, net 675,000,000
Investments in Subsidiaries and Affiliates 533,000,000
Intangible Assets, net 100,000,000
Other Assets 85,000,000
--------------
TOTAL ASSETS $1,824,000,000
==============
Liabilities & Shareholders' Deficit
Current liabilities:
Accounts Payable $147,000,000
Short Term Debt 300,000,000
Other Current Liabilities 147,000,000
--------------
Total Current Liabilities 594,000,000
Other Long-Term Liabilities 207,000,000
Total Liabilities not Subject to Compromise 801,000,000
Liabilities Subject to Compromise 2,266,000,000
Shareholders' Deficit (1,243,000,000)
--------------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $1,824,000,000
==============
Solutia Chapter 11 Debtors
Unaudited Consolidated Statement of Operations
For the Month Ended July 31, 2005
Total Net Sales $179,000,000
Total Cost Of Goods Sold 157,000,000
--------------
Gross Profit 22,000,000
Total MAT Expense 18,000,000
--------------
Operating Income 4,000,000
Equity Earnings from Affiliates 6,000,000
Interest Expense, net (5,000,000)
Other Income, net 1,000,000
Reorganization Items:
Professional fees (4,000,000)
--------------
Income Before Taxes 2,000,000
Income Taxes -
--------------
Net Income $2,000,000
==============
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
Richard M. Cieri, Esq., at Kirkland & Ellis. (Solutia Bankruptcy
News, Issue No. 46; 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. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
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Nothing in the TCR constitutes an offer or solicitation to buy or
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public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
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Don't be fooled. Assets, for example, reported at historical cost
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Monthly Operating Reports are summarized in every Saturday edition
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For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published by
Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania,
USA, and Beard Group, Inc., Frederick, Maryland USA. Yvonne L.
Metzler, Emi Rose S.R. Parcon, Rizande B. Delos Santos, Jazel P.
Laureno, Cherry Soriano-Baaclo, Marjorie Sabijon, Terence Patrick
F. Casquejo, Jason A. Nieva, Christian Q. Salta, Lucilo Junior M.
Pinili and Peter A. Chapman, Editors.
Copyright 2005. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***