/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/070414.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 14, 2007, Vol. 11, No. 88 Headlines ADVANCED MARKETING: Publishers Group's Schedules of Assets & Debts ADVANCED MARKETING: Publishers Group West Files Schedules CATHOLIC CHURCH: Davenport Files February 2007 Operating Report CATHOLIC CHURCH: San Diego Amends Schedules of Assets and Debts CATHOLIC CHURCH: Spokane Files February 2007 Operating Report COMPLETE RETREATS: Files February 2007 Monthly Operating Report COMPLETE RETREATS: Distinctive Files Feb. 2007 Operating Report COMPLETE RETREATS: Legendary Files February 2007 Operating Report COMPLETE RETREATS: Preferred Files February 2007 Operating Report COMPLETE RETREATS: Private Files February 2007 Operating Report DELPHI CORP: Posts $132 Million Net Loss in February 2007 DELTA AIR: Files Monthly Operating Report for February 2007 ENTERGY NEW ORLEANS: Posts $2.45 Million Net Loss in February 2007 FEDERAL-MOGUL: Earns $8.2 Million in February 2007 MORTGAGE LENDERS: Posts $76.6 Million Net Loss in February 2007 NORTHWEST AIRLINES: Posts $33 Million Net Loss in February 2007 PACIFIC LUMBER: Scotia Development's January 2007 Operating Report PACIFIC LUMBER: Scotia Development's Feb. 2007 Operating Report PACIFIC LUMBER: Scotia Pacific Earns $602,006 in January 2007 PACIFIC LUMBER: Scotia Pacific Posts $1.6MM Net Loss in Feb. 2007 SOLUTIA INC: Posts $6 Million Net Loss in February 2007 SONICBLUE INC: Files February 2007 Monthly Operating Report TOWER AUTOMOTIVE: Posts $14.7 Million Net Loss in February 2007 ********* ADVANCED MARKETING: Publishers Group's Schedules of Assets & Debts ------------------------------------------------------------------ A. Real Property $0 B. Personal Property 0 TOTAL SCHEDULED ASSETS $0 ==== C. Property Claimed as Exempt Not applicable D. Creditors Holding Secured Claims Wells Fargo Foothill, Inc. $41,514,348 E. Creditors Holding Unsecured Priority Claims 0 F. Creditors Holding Unsecured Claims 0 TOTAL SCHEDULED LIABILITIES $41,514,348 ============ Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). ADVANCED MARKETING: Publishers Group West Files Schedules --------------------------------------------------------- A. Real Property 0 B. Personal Property B.2 Bank accounts Cash in Bank -- Main ($370,438) Cash in Bank -- New York 2,555 B.3 Security Deposits 30,000 B.16 Accounts receivable Accounts Receivable, net 36,778,094 Vendor and Misc. Receivables 56,402 B.28 Office equipment and supplies 267,990 B.29 Machinery, furniture and fixtures 576,181 B.35 Other personal property Notes Receivable 2,136,687 Prepaid Expense 163,647 Prepaid Insurance 58,333 TOTAL SCHEDULED ASSETS $39,699,451 ============ C. Property Claimed as Exempt Not applicable D. Creditors Holding Secured Claims Wells Fargo Foothill, Inc. $41,514,348 E. Creditors Holding Unsecured Priority Claims 565,365 F. Creditors Holding Unsecured Claims Intercompany payable Advanced Marketing Services 6,476,038 Publisher Amber Allen Publishing 1,038,857 Avalon Travel Publishing 1,186,831 Backbeat Books 654,548 Berrett-Koehler 248,440 Canongate Books 613,616 Carroll & Graf 1,128,619 Carus Publishing 399,022 Children's Book Press 106,004 Cleis Press 326,091 CMP Books 185,802 Dark Horse 177,006 Demos Medical 120,142 DH Press 221,492 Douglas & McIntyre/Greyst 151,621 Emmis Books 230,615 Footprint Handbooks 162,265 Frog Ltd. 774,285 Gallup 677,179 Gibbs Smith 118,074 Groundwood 203,034 Grove/Atlantic 3,816,335 H J Kramer 156,518 Hugh L. Levin Associates 1,108,605 Hunter House 177,385 Inside Communications 363,379 Kabbalah Centre 151,435 Marlowe & Company 990,593 McSweeney's Publishing 548,773 Milkweed Editions 139,815 New World Library 1,333,414 New World Library/AAP 100,829 North Atlantic Books 589,051 Paperblank Book Company 809,166 Parallax Press 176,749 Passporter Travel Press 121,720 Plexus Publishing 106,315 Portable Press 459,340 Rich Publishing 4,513,830 Sasquatch Books 295,414 Seal Press 222,999 Shelter Publications 216,677 Shoemaker & Hoard 176,373 Silver Dolphin 526,528 The Audio Partners 286,731 Thunder Bay 437,866 Thunder's Mouth Press 224,080 Time Out 229,854 Tinwood Books 109,307 Travelers Tales 172,439 Trinity University Press 290,467 Ulysses Press 650,425 Underwood Books 308,097 Windsor Peak 346,372 Wisdom Publications 399,285 Accounts Payable -- Vendor Federal Express Corp. 227,680 Grove/Atlantic 105,256 Yellow Transportation 307,943 Others 4,796,158 TOTAL SCHEDULED LIABILITIES $83,272,493 ============ Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Davenport Files February 2007 Operating Report --------------------------------------------------------------- Diocese of Davenport in Iowa Statement of Financial Position As of February 28, 2007 ASSETS Current Assets Cash and cash equivalents - unrestricted $5,253,689 Cash and cash equivalents - restricted 2,383,077 Accounts receivable, net 31,817 Inventory - Prepaid expenses 1,561 Professional retainers 55,652 -------------- Total Current Assets 7,725,796 -------------- Property and Equipment Real Property 4,737,300 Machinery and equipment 6,000 Furniture and fixtures 8,914 Office equipment 59,500 Leasehold improvements - Vehicles 45,460 -------------- Total Property and Equipment 4,857,174 -------------- Total Assets $12,582,970 ============== LIABILITIES AND NET ASSETS Postpetition: Current Liabilities Salaries and wages - Payroll taxes - Real and personal property taxes - Income taxes - Sales taxes - Notes payable, short term - Accounts payable, trade $13,314 Real property lease arrearage - Personal property lease arrearage - Accrued professional fees - Current portion of long-term debt - Pass-through collections 124,372 -------------- Total Current Liabilities 137,686 -------------- Long-Term Postpetition Debt, Net - -------------- Total Postpetition Liabilities 137,686 -------------- Prepetition Liabilities Secured claims - Priority unsecured claims $160,888 General unsecured claims 1,660,316 -------------- Total Prepetition Liabilities 1,821,204 -------------- Total Liabilities 1,958,890 -------------- Equity (deficit): Retained earnings/deficit at filing: 5,795,187 Capital stock - Additional paid-in capital - Cumulative profit/loss since filing 995,714 Post-petition contributions/distributions or draws - Market value adjustment 3,833,179 -------------- Total equity (deficit) 10,624,080 -------------- Total liabilities & equity (deficit) $12,582,970 ============== Diocese of Davenport in Iowa Statement of Operations For the month ending February 28, 2007 Revenues Gross sales $250 Less: sales returns & allowances - Net sales 250 Less: cost of goods sold - Gross profit 250 Interest 1,100 Other income: Charitable gifts 225,484 Insurance receipts 73,731 Investment income 21,987 -------------- Total revenues 322,552 -------------- Expenses: Compensation to owner(s)/officer(s) 12,578 Salaries 90,285 Commissions - Contract labor 5,770 Rent/Lease: Personal property 459 Real property - Insurance 23,572 Management fees - Depreciation 5,945 Taxes: Employer payroll taxes 5,653 Real property taxes - Other taxes - Other selling - Other administrative 38,988 Interest - Other expenses: Employee benefits 17,254 Charity collection 7,529 Medical assistance/Victim assistance 23,415 Utilities 6,021 Transfer to unrestricted - Professional Investment Management Fees 719 Sabbatical - -------------- Total expenses 238,188 Reorganization items: Professional fees (1,520) Provisions for rejected executory contracts - Interest earned on accumulated cash from resulting Chapter 11 case 17,136 Gain or (Loss) from sale of equipment - U.S. Trustee quarterly fees -------------- Total reorganization items 15,616 -------------- Net profit (loss) before federal & state taxes 99,980 Federal & state income taxes - -------------- Net Profit (Loss) $99,980 ============== Diocese of Davenport in Iowa Statement of Cash Receipts and Disbursements For the month ending February 28, 2007 Cash receipts Rent/Leases collected $3,096 Cash received from sales 250 Interest received 18,236 Borrowings increase in accounts payable - Funds from shareholders, partners, or other insiders - Capital contributions - Annual diocesan appeal/donations 225,484 Investment income/misc. - Insurance receipts 73,731 Tribunal/Immigration/Faith Formation fees 18,891 Decrease in prepaids/accounts receivable - Misc/Increase in accounts payable 14,259 -------------- Total Cash Receipts 353,947 -------------- Cash disbursements: Payments for inventory - Selling - Administrative 51,337 Capital expenditures - Principal payments on debt - Interest paid - Rent/Lease: Personal Property 459 Real Property - Amount paid to owner(s)/officer(s) Salaries 12,578 Draws - Commissions/Royalties - Expense Reimbursements 3,189 Other - Salaries/Commissions (less employee withholding 68,664 Management fees - Taxes Employee withholding 21,621 Employer payroll taxes 5,653 Real property taxes - Other taxes - Other cash outflows: Insurance 23,572 Utilities 6,021 Medical Assistance 23,415 Employee Benefits 17,254 Misc/Decrease in Accts Payable/Increase in receivables 11,902 -------------- Total Cash Disbursements 245,665 -------------- Net increase (decrease) in cash 108,282 Cash balance, beginning of period 1,459,739 -------------- Cash balance, end of period $1,568,021 ============== The Diocese of Davenport in Iowa filed for chapter 11 protection (Bankr. S.D. Ia. Case No. 06-02229) on October 10, 2006. Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the Davenport Diocese in its restructuring efforts. Hamid R. Rafatjoo, Esq., and Gillian M. Brown, Esq., of Pachulski Stang Zhiel Young Jones & Weintraub LLP represent the Official Committee of Unsecured Creditors. In its schedules of assets and liabilities, the Davenport Diocese reported $4,492,809 in assets and $1,650,439 in liabilities. Davenport's exclusive period to file a plan will expire on Aug. 15, 2007. Its exclusive period to solicit acceptances of its plan will expire on Oct. 14, 2007. (Catholic Church Bankruptcy News, Issue No. 87; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: San Diego Amends Schedules of Assets and Debts --------------------------------------------------------------- Richard M. Mirando, director of the Office of Finance, notifies the U.S. Bankruptcy Court for the Southern District of California that The Roman Catholic Bishop of San Diego has amended its Schedules A, B, D, E, F and G, which were filed on Feb. 27, 2007. A. Real Property Mater Dei High School $60,790,223 Holy Cross Cemetery 11,376,471 Pastoral Center 7,034,112 Others 17,480,034 B. Personal Property B.1 Cash on Hand Petty Cash Fund 5,420 B.2 Bank Accounts Pastoral Center 9,013,838 Holy Cross Cemetery 681,471 Marian Catholic High School 3,181,160 SDSU Newman Center 27,911 Vincent Memorial High School 281,457 UCSD Newman Center 76,056 B.3 Security Deposits 0 B.4 Household Goods unknown B.5 Books, art work & collectibles unknown B.6 Wearing apparel 0 B.7 Furs and jewelry unknown B.8 Firearms and sporting goods unknown B.9 Interests in insurance policies 0 B.10 Annuities 0 B.11 Interests in education IRA 0 B.12 Interests in retirement plans 0 B.13 Stock and Interests Large Cap Value 9,786,164 Mid Cap Growth 11,095,348 Catholic Mutual Group 0 Catholic Umbrella Pool 0 B.14 Interests in joint ventures 0 B.15 Government & corporate bonds 0 Domestic Income - Intermediate 4,838,586 Domestic Income - Short 6,841,372 US Government Obligations 5,271,029 B.16 Accounts receivable Pastoral Center 3,324,612 Diocesan Notes Receivable 37,232 Marian Catholic High School 1,139,284 Marian's Other Receivables 92,479 Marian's Prepaid Expenses 3,000 Vincent Memorial High School 575,068 Holy Cross Cemetery 4,414,838 Holy Cross' Other Expenses 4,413 UCSD Newman Center 1,854 B.17 Alimony 0 B.18 Other liquidated debts owed 0 B.19 Equitable and future interests 0 B.20 Contingent interests John Donahue Trust 3,698,579 B.21 Other contingent & unliquidated claims 0 B.22 Patents, copyrights & trademarks 0 B.23 Licenses & franchises 0 B.24 Other intangibles 0 B.25 Automobiles Pastoral Center 3,275 Marian Catholic High School 19,500 Vincent Memorial High School 13,760 Holy Cross Cemetery 27,625 B.26 Boats 0 B.27 Aircraft 0 B.28 Office equipment and supplies unknown B.29 Machinery, furniture and fixtures unknown B.30 Inventory unknown Marian Catholic High School 14,507 Holy Cross Cemetery 6,653,524 B.31 Animals 0 B.32 Crops 0 B.33 Farming equipment 0 B.34 Farm supplies 0 B.35 Other personal property 0 TOTAL SCHEDULED ASSETS $167,804,214 ============= C. Property Claimed as Exempt Not Applicable D. Secured Claims ALSAM Foundation 35,920,100 Union Bank of California 4,323,204 40,243,304 E. Unsecured Priority Claims 526,837 F. Unsecured Non-Priority Claims 54,837,851 TOTAL SCHEDULED LIABILITIES $95,607,992 ============ Roman Catholic Diocese of San Diego in California -- http://www.diocese-sdiego.org/-- employs approximately 3,000 people in various areas of work. The Diocese filed for Chapter 11 protection just before commencement of the first of court proceedings for 140 sexual abuse lawsuits filed against the Diocese. Authorities of the San Diego Diocese said they were not in favor of litigating their cases. The San Diego Diocese filed for chapter 11 protection on Feb. 27, 2007 (Bankr. S.D. Calif. Case No. 07-00939). Gerald P. Kennedy, Esq., at Procopio, Cory, Hargreaves and Savitch LLP, represents the Diocese. In its schedules of assets and liabilities, the Diocese listed total assets of $152,510,888 and total liabilities of $72,754,092. The Diocese's exclusive period to file a chapter 11 plan of reorganization expires on June 27, 2007. The Debtor filed a Plan and Disclosure Statement on March 27, 2007. (Catholic Church Bankruptcy News, Issue No. 87; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Spokane Files February 2007 Operating Report ------------------------------------------------------------- Catholic Diocese of Spokane Balance Sheet As of February 28, 2007 ASSETS Total Cash Accounts $2,708,713 Total Transfer Account (6,505,375) Total Investments 104,315 Total Property - Total Loans Receivable - Total Interfund Loan Receivable - Total Accounts Receivable 93,534 Total Land and Buildings & Equipment 67,569 Total Prepaid Expenses 491 -------------- Total Assets ($3,530,750) ============== LIABILITIES AND NET ASSETS Liabilities Total Deposits Payable 4,606,602 Total Interest Payable - Total Accounts Payable 3,594 Total Long-term Liabilities 9,269,297 Net Assets Total Unrestricted - Fund Balance (19,365,437) Total Unrestricted Net Assets (19,365,437) T.R. - Guse Grant Funds 417,749 T.R. - Bishop's School Grants Funds 72,630 T.R. - Bishop's Discretionary Funds 65,681 Total Replacement Fund 1,955,192 Total Diocesan D&L Funding - Total Guatemala Funds - Temporarily Restricted - -------------- Total liabilities & net assets ($3,530,750) ============== Catholic Diocese of Spokane Income and Expense Statement For the month ending February 28, 2007 Total Income 250,396 Total Expenses 652,424 -------------- Net Excess or Deficit 402,028 ============== The Diocese of Spokane's Statement of Cash Receipts and Disbursements for February 2007 shows ending balance of $2,289,503. Cash receipts for the period total $740,341, while disbursements total $390,127. 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. The Diocese of Spokane, the Tort Claimants Committee, the Future Claims Representative, and the Executive Committee of the Association of Parishes delivered an Amended Plan of Reorganization, and a Disclosure Statement describing that Plan to the Court on Feb. 1, 2007. The Honorable Patricia C. Williams approved the disclosure statement on March 8, 2007. The hearing to consider confirmation of the plan starts on April, 24, 2007. (Catholic Church Bankruptcy News, Issue No. 87; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). COMPLETE RETREATS: Files February 2007 Monthly Operating Report --------------------------------------------------------------- Complete Retreats, LLC Balance Sheet As of February 28, 2007 ASSETS Unrestricted Cash - Restricted Cash - -------------- Total Cash - Accounts Receivable (Net) - Inventory - Notes Receivable - Prepaid Expenses - Other - -------------- Total Current Assets - Property, Plant & Equipment $528,774 Less: Accumulated Depreciation/Depletion (127,342) -------------- Net Property, Plant & Equipment 401,432 Due from Insiders - Other Assets - Net of Amortization - Other 4,072,562 -------------- Total Assets $4,473,994 ============== LIABILITIES & OWNERS' EQUITY Postpetition Liabilities Accounts Payable - Taxes Payable - Notes Payable - Professional Fees - Secured Debt - Other - -------------- Total Postpetition Liabilities - Prepetition Liabilities Secured Debt - Priority Debt - Unsecured Debt - Other $349,494 -------------- Total Prepetition Liabilities 349,494 -------------- Total Liabilities 349,494 Equity Prepetition Owners' Equity 4,124,500 Postpetition Cumulative Profit or Loss - Cash funded from UR LLC in excess of P&L losses - -------------- Total Equity 4,124,500 -------------- Total Liabilities & Owners' Equity $4,473,994 ============== Complete Retreats, LLC Statement of Operations February 1 to 28, 2007 Revenues Gross Revenues $0 Less: Returns & Discounts - -------------- Net Revenue 0 Cost of Goods Sold Material - Direct Labor Direct Overhead - -------------- Total Cost of Goods Sold - -------------- Gross Profit - Operating Expenses Officer/Insider Compensation - Selling & Marketing - General Administration - Rent & Lease - Other - -------------- Total Operating Expenses 0 -------------- Income Before Non-Operating Income & Expenses 0 Other Income & Expenses Non-operating Income - Non-operating Expense - Interest Expense - Depreciation/Depletion - Amortization - Other - -------------- Net Other Income & Expenses - Reorganization Expenses Professional Fees - U.S. Trustee Fees - Other - -------------- Total Reorganization Expenses 0 -------------- Income Tax 0 -------------- Net Profit (Loss) $0 ============== Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor-affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed $308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 24; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). COMPLETE RETREATS: Distinctive Files Feb. 2007 Operating Report --------------------------------------------------------------- Distinctive Retreats, LLC Balance Sheet As of February 28, 2007 ASSETS Unrestricted Cash - Restricted Cash - -------------- Total Cash - Accounts Receivable (Net) - Inventory $50,831 Notes Receivable 448,000 Prepaid Expenses 198,555 Other - -------------- Total Current Assets 697,386 Property, Plant & Equipment 104,613,316 Less: Accumulated Depreciation/Depletion (3,482,887) -------------- Net Property, Plant & Equipment 101,130,429 Due from Insiders - Other Assets - Net of Amortization 485,000 Other 117,027,287 -------------- Total Assets $219,340,102 ============== LIABILITIES & OWNERS' EQUITY Postpetition Liabilities Accounts Payable $37 Taxes Payable - Notes Payable - Professional Fees - Secured Debt - Other 37,559,319 -------------- Total Postpetition Liabilities 37,559,356 Prepetition Liabilities Secured Debt 452,027 Priority Debt - Unsecured Debt 30,713,743 Other 16,851,100 -------------- Total Prepetition Liabilities 48,016,870 -------------- Total Liabilities 85,576,226 Equity Prepetition Owners' Equity 133,882,810 Postpetition Cumulative Profit or Loss (65,741) Cash funded from UR LLC in excess of P&L losses - -------------- Total Equity 133,817,069 -------------- Total Liabilities & Owners' Equity $219,393,295 ============== Distinctive Retreats, LLC Statement of Operations February 1 to 28, 2007 Revenues Gross Revenues $5,532 Less: Returns & Discounts - -------------- Net Revenue 5,532 Cost of Goods Sold Material - Direct Labor - Direct Overhead - -------------- Total Cost of Goods Sold - -------------- Gross Profit 5,532 Operating Expenses Officer/Insider Compensation - Selling & Marketing - General Administration - Rent & Lease - Other 47,406 -------------- Total Operating Expenses 47,406 -------------- Income Before Non-Operating Income & Expenses (41,874) Other Income & Expenses Non-operating Income - Non-operating Expense - Interest Expense - Depreciation/Depletion 76,595 Amortization - Other (29,406) -------------- Net Other Income & Expenses 47,189 Reorganization Expenses Professional Fees - U.S. Trustee Fees - Other - -------------- Total Reorganization Expenses - -------------- Income Tax - -------------- Net Profit (Loss) ($89,063) ============== Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor-affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed $308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 24; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). COMPLETE RETREATS: Legendary Files February 2007 Operating Report ----------------------------------------------------------------- Legendary Retreats, LLC Balance Sheet As of February 28, 2007 ASSETS Unrestricted Cash $8,375 Restricted Cash - -------------- Total Cash 8,375 Accounts Receivable (Net) - Inventory - Notes Receivable 1,610,000 Prepaid Expenses 74,170 Other 110,000 -------------- Total Current Assets 1,794,170 Property, Plant & Equipment 26,936 Less: Accumulated Depreciation/Depletion - -------------- Net Property, Plant & Equipment 26,936 Due from Insiders - Other Assets - Net of Amortization - Other 17,966,585 -------------- Total Assets $19,796,065 ============== LIABILITIES & OWNERS' EQUITY Postpetition Liabilities Accounts Payable - Taxes Payable - Notes Payable $11,366 Professional Fees - Secured Debt - Other - -------------- Total Postpetition Liabilities 11,366 Prepetition Liabilities Secured Debt - Priority Debt - Unsecured Debt 485,991 Other 4,064,000 -------------- Total Prepetition Liabilities 4,549,991 -------------- Total Liabilities 4,561,357 Equity Prepetition Owners' Equity 15,300,377 Postpetition Cumulative Profit or Loss (65,668) Cash funded from UR LLC in excess of P&L losses - -------------- Total Equity 15,234,708 -------------- Total Liabilities & Owners' Equity $19,796,065 ============== Legendary Retreats, LLC Statement of Operations February 1 to 28, 2007 Revenues Gross Revenues - Less: Returns & Discounts - -------------- Net Revenue - Cost of Goods Sold Material - Direct Labor - Direct Overhead $170 -------------- Total Cost of Goods Sold 170 -------------- Gross Profit (170) Operating Expenses Officer/Insider Compensation - Selling & Marketing - General Administration 130 Rent & Lease - Other 11,250 -------------- Total Operating Expenses 11,380 -------------- Income Before Non-Operating Income & Expenses (11,550) Other Income & Expenses Non-operating Income - Non-operating Expense - Interest Expense - Depreciation/Depletion - Amortization - Other (11,250) -------------- Net Other Income & Expenses (11,250) Reorganization Expenses Professional Fees - U.S. Trustee Fees - Other - -------------- Total Reorganization Expenses - -------------- Income Tax - -------------- Net Profit (Loss) ($300) ============== Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor-affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed $308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 24; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). COMPLETE RETREATS: Preferred Files February 2007 Operating Report ----------------------------------------------------------------- Preferred Retreats, LLC Balance Sheet As of February 28, 2007 ASSETS Unrestricted Cash $246,226 Restricted Cash 326,530 -------------- Total Cash 572,757 Accounts Receivable (Net) 755,449 Inventory 2,056,975 Notes Receivable 142,704 Prepaid Expenses 3,031,042 Other 1,023,169 -------------- Total Current Assets 7,009,339 Property, Plant & Equipment 9,077,974 Less: Accumulated Depreciation/Depletion (3,329,809) -------------- Net Property, Plant & Equipment 5,748,164 Due from Insiders 2,222,666 Other Assets - Net of Amortization 1,555 Other 100,615,626 -------------- Total Assets $116,170,107 ============== LIABILITIES & OWNERS' EQUITY Postpetition Liabilities Accounts Payable $11,604,277 Taxes Payable - Notes Payable 75,020,184 Professional Fees - Secured Debt - Other 8,277,312 -------------- Total Postpetition Liabilities 94,901,773 Prepetition Liabilities Secured Debt 43,411 Priority Debt - Unsecured Debt 11,918,346 Other 126,691,772 -------------- Total Prepetition Liabilities 138,653,529 -------------- Total Liabilities 233,555,303 Equity Prepetition Owners' Equity (90,524,986) Postpetition Cumulative Profit or Loss (30,913,402) Cash funded from UR LLC in excess of P&L losses 4,000,000 -------------- Total Equity (117,438,388) -------------- Total Liabilities & Owners' Equity $116,116,914 ============== Preferred Retreats, LLC Statement of Operations February 1 to 28, 2007 Revenues Gross Revenues ($32,332) Less: Returns & Discounts - -------------- Net Revenue (32,332) Cost of Goods Sold Material 348 Direct Labor - Direct Overhead 2,535 -------------- Total Cost of Goods Sold 2,883 -------------- Gross Profit (35,215) Operating Expenses Officer/Insider Compensation - Selling & Marketing (1,835) General Administration 163,050 Rent & Lease - Other 22,770 -------------- Total Operating Expenses 183,985 -------------- Income Before Non-Operating Income & Expenses (219,200) Other Income & Expenses Non-operating Income - Non-operating Expense (1,161) Interest Expense - Depreciation/Depletion 57,536 Amortization - Other (47,891) -------------- Net Other Income & Expenses 8,484 Reorganization Expenses Professional Fees 335,825 U.S. Trustee Fees - Other 39,500 -------------- Total Reorganization Expenses 375,325 -------------- Income Tax - -------------- Net Profit (Loss) ($603,009) ============== Preferred Retreats had $3,496,933 on hand as of February 28, 2007. Preferred Retreats obtained $7,903,605 in immediately available cash for the period from February 1 to 28, 2007, from accounts receivables, asset sales and certain loans. During the same period, the company spent $3,224,163 for its daily business operations, and paid $1,182,509 on reorganization fees, including fees for the U.S. Trustee and the company's bankruptcy professionals. Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor-affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed $308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 24; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). COMPLETE RETREATS: Private Files February 2007 Operating Report --------------------------------------------------------------- Private Retreats, LLC Balance Sheet As of February 28, 2007 ASSETS Unrestricted Cash - Restricted Cash $1,679 -------------- Total Cash 1,679 Accounts Receivable (Net) - Inventory 71,384 Notes Receivable 560,981 Prepaid Expenses - Other - -------------- Total Current Assets 632,365 Property, Plant & Equipment 51,312,308 Less: Accumulated Depreciation/Depletion (5,722,581) -------------- Net Property, Plant & Equipment 45,589,727 Due from Insiders - Other Assets - Net of Amortization 1,152,200 Other 19,043,142 -------------- Total Assets $66,419,113 ============== LIABILITIES & OWNERS' EQUITY Postpetition Liabilities Accounts Payable - Taxes Payable - Notes Payable $14,901 Professional Fees - Secured Debt - Other 29,831,546 -------------- Total Postpetition Liabilities 29,846,447 Prepetition Liabilities Secured Debt 186,738 Priority Debt - Unsecured Debt 5,432,515 Other 12,508,567 -------------- Total Prepetition Liabilities 18,127,820 -------------- Total Liabilities 47,974,267 Equity Prepetition Owners' Equity 19,317,217 Postpetition Cumulative Profit or Loss (872,370) Cash funded from UR LLC in excess of P&L losses - -------------- Total Equity 18,444,846 -------------- Total Liabilities & Owners' Equity $66,419,113 ============== Private Retreats, LLC Statement of Operations February 1 to 28, 2007 Revenues Gross Revenues $981 Less: Returns & Discounts - -------------- Net Revenue 981 Cost of Goods Sold Material - Direct Labor - Direct Overhead - -------------- Total Cost of Goods Sold - -------------- Gross Profit 981 Operating Expenses Officer/Insider Compensation - Selling & Marketing - General Administration - Rent & Lease - Other - -------------- Total Operating Expenses - -------------- Income Before Non-Operating Income & Expenses 981 Other Income & Expenses Non-operating Income - Non-operating Expense - Interest Expense - Depreciation/Depletion 136,693 Amortization - Other (148,238) -------------- Net Other Income & Expenses (11,544) Reorganization Expenses Professional Fees - U.S. Trustee Fees - Other - -------------- Total Reorganization Expenses - -------------- Income Tax - -------------- Net Profit (Loss) $12,526 ============== Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor-affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed $308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 24; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). DELPHI CORP: Posts $132 Million Net Loss in February 2007 --------------------------------------------------------- Delphi Corporation, et al. Unaudited Consolidated Balance Sheet As of February 28, 2007 (In Millions) ASSETS Current assets: Cash and cash equivalents $139 Restricted cash 108 Accounts receivable, net General Motors and affiliates 1,286 Other third parties 1,286 Non-Debtor subsidiaries 344 Notes receivable from non-Debtor subsidiaries 349 Inventories, net Productive material, work-in-process and supplies 879 Finished goods 290 Prepaid expenses and other 259 -------- TOTAL CURRENT ASSETS 4,940 Long-term assets: Property, net 2,164 Investment in affiliates 372 Investments in non-Debtor subsidiaries 3,377 Goodwill 152 Other intangible assets 34 Other 330 -------- TOTAL ASSETS $11,369 ======== LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities not subject to compromise: Debtor-in-possession financing $2,893 Accounts payable 1,265 Accounts payable to non-Debtor subsidiaries 481 Accrued liabilities 812 -------- TOTAL CURRENT LIABILITIES 5,451 Long-term liabilities not subject to compromise: Employee benefit plan obligations and other 749 -------- TOTAL LONG-TERM LIABILITIES 749 Liabilities subject to compromise 17,593 -------- TOTAL LIABILITIES 23,793 Stockholders' deficit: Common stock 6 Additional paid-in capital 2,772 Accumulated deficit (12,211) Accumulated other comprehensive loss (2,939) Treasury stock, at cost (3.2 million shares) (52) -------- TOTAL STOCKHOLDERS' DEFICIT (12,424) -------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $11,369 ======== Delphi Corporation, et al. Unaudited Consolidated Statement of Operations Month Ended February 28, 2007 (In Millions) Net sales: General Motors and affiliates $739 Other customers 476 Intercompany non-Debtor subsidiaries 88 -------- Total net sales 1,303 -------- Operating expenses: Cost of sales 1,320 Selling, general and administrative 75 Depreciation and amortization 57 -------- Total operating expenses 1,452 -------- Operating loss (149) Interest expense (19) Other expense, net 6 Reorganization items (16) Income tax benefit (expense) (1) Equity income from non-consolidated subsidiaries 4 Equity income from non-Debtor subsidiaries, net of tax 43 -------- NET LOSS ($132) ======== Delphi Corporation, et al. Unaudited Consolidated Statement of Cash Flows Month Ended February 28, 2007 (In Millions) Cash flows from operating activities: Net loss ($132) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 57 Pension and other postretirement benefit expenses 97 Equity loss from unconsolidated subsidiaries, net (4) Equity loss from non-Debtor subsidiaries, net of tax (43) Reorganization items 16 Changes in operating assets and liabilities: Accounts receivable, net (177) Inventories, net 40 Prepaid expenses and other (8) Accounts payable, accrued and other long-term debts 60 U.S. employee special attrition program (74) Pension contributions (1) Other postretirement benefit payments 3 Receipts (payments) for reorganization items, net (13) Other (4) -------- Net cash used in operating activities (183) Cash flows from investing activities: Capital expenditures (17) Proceeds from sale of property 2 Other (6) -------- Net cash used in investing activities (21) Cash flows from financing activities: Net borrowings under revolving credit facility 150 -------- Net cash used in financing activities 150 -------- Decrease in cash and cash equivalents (54) Cash and cash equivalents at beginning of period 193 -------- Cash and cash equivalents at end of period $139 ======== Troy, Mich.-based Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The Company's technology and products are present in more than 75 million vehicles on the road worldwide. The Company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed $17,098,734,530 in total assets and $22,166,280,476 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. (Delphi Corporation Bankruptcy News, Issue No. 64; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). DELTA AIR: Files Monthly Operating Report for February 2007 ----------------------------------------------------------- Delta Air Lines filed its Monthly Operating Report for February 2007 with the U.S. Bankruptcy Court for the Southern District of New York. Key points include: * Delta's February 2007 net income was $55 million. * As of February 28, 2007, Delta had $2.7 billion of unrestricted cash, cash equivalents and short-term investments. Delta reported net income of $55 million in the month of February 2007, compared to a net loss of $209 million in February 2006. Excluding reorganization items, Delta's net loss was $43 million for February 2007, a $95 million improvement versus the prior year period. Delta's operating loss of $5 million includes a $5 million negative impact of fuel hedges for the month. As of February 28, 2007, Delta had $3.7 billion of cash, cash equivalents and short-term investments, of which $2.7 billion was unrestricted. Restructuring Progress Delta remains on course to emerge from Chapter 11 next month, having made significant progress in transforming the airline into a strong and vibrant competitor. Evidence of the company's progress in February's performance: * Delta's consolidated passenger unit revenue increased 1.4% for February 2007 compared to February 2006. Delta's length of haul adjusted PRASM was 95.5% of industry average for the month, driven by the strength of its domestic system which increased to 100% of industry average PRASM. * Delta's operating expenses decreased 1.8% despite a capacity increase of 2.8%, resulting in a 4.5% reduction in consolidated unit costs in February 2007 compared to February 2006. Mainline non-fuel CASM was 7.61 cents for the month, a 7.6% improvement year over year. "February's results demonstrate the significant momentum we have created with our restructuring," said Edward H. Bastian, Delta's executive vice president and chief financial officer. "We look forward to emerging from bankruptcy in a matter of weeks, having transformed our company into a strong, healthy competitor in this tough industry." Important Financial Disclosure Current holders of Delta's equity will not receive any distributions under Delta's proposed Plan of Reorganization. These equity interests would be cancelled upon the effectiveness of the proposed Plan of Reorganization, which the company believes will occur shortly after the confirmation hearing scheduled on April 25, 2007. Accordingly, we urge that caution be exercised with respect to investments in Delta's existing equity securities and any of Delta's liabilities and other securities. DELTA AIR LINES, INC. Unaudited Consolidated Balance Sheet As of February 28, 2007 ASSETS CURRENT ASSETS: Cash and cash equivalents $1,978,000,000 Short-term investments 710,000,000 Restricted cash 974,000,000 Accounts receivable, net of an allowance for uncollectible accounts of $21 1,079,000,000 Expendable parts and supplies inventories, net of an allowance for obsolescence of $131 180,000,000 Deferred income taxes, net 401,000,000 Prepaid expenses and other 554,000,000 --------------- Total current assets 5,876,000,000 PROPERTY AND EQUIPMENT: Flight equipment 17,661,000,000 Accumulated depreciation (6,884,000,000) --------------- Flight equipment, net 10,777,000,000 Ground property and equipment 4,419,000,000 Accumulated depreciation (2,876,000,000) --------------- Ground property and equipment, net 1,543,000,000 Flight and ground equipment under capital leases 474,000,000 Accumulated amortization (146,000,000) --------------- Flight and ground equipment under capital leases, net 328,000,000 --------------- Advance payments for equipment 71,000,000 --------------- Total property and equipment, net 12,719,000,000 OTHER ASSETS: Goodwill 227,000,000 Operating rights and other intangibles, net of accumulated amortization of $191 88,000,000 Other noncurrent assets 746,000,000 --------------- Total other assets 1,061,000,000 --------------- Total assets $19,656,000,000 =============== LIABILITIES AND SHAREOWNERS' DEFICIT CURRENT LIABILITIES: Current maturities of long-term debt and capital leases $1,687,000,000 Accounts payable 904,000,000 Air traffic liability 2,350,000,000 Taxes payable 558,000,000 Deferred revenue 375,000,000 Accrued salaries and related benefits 417,000,000 Other accrued liabilities 266,000,000 --------------- Total current liabilities 6,557,000,000 NONCURRENT LIABILITIES: Long-term debt and capital leases 6,159,000,000 Deferred income taxes, net 412,000,000 Deferred revenue and other credits 347,000,000 Other 367,000,000 --------------- Total noncurrent liabilities 7,285,000,000 LIABILITIES SUBJECT TO COMPROMISE 19,417,000,000 COMMITMENTS AND CONTINGENCIES SHAREOWNERS' DEFICIT: Common stock: $0.01 par value; 900,000,000 shares authorized; 202,081,648 shares issued 2,000,000 Additional paid-in capital 1,561,000,000 Accumulated deficit (14,468,000,000) Accumulated other comprehensive loss (474,000,000) Treasury stock at cost, 4,745,710 shares (224,000,000) --------------- Total shareowners' deficit (13,603,000,000) --------------- Total liabilities and shareowners' deficit $19,656,000,000 =============== DELTA AIR LINES, INC. Unaudited Consolidated Statement of Operations For the Month Ended February 28, 2007 OPERATING REVENUES: Passenger: Mainline $833,000,000 Regional affiliates 289,000,000 Cargo 36,000,000 Other, net 94,000,000 --------------- Total operating revenues 1,252,000,000 OPERATING EXPENSES: Salaries and related costs 297,000,000 Aircraft fuel 270,000,000 Contract carrier arrangements 230,000,000 Depreciation and amortization 98,000,000 Contracted services 89,000,000 Passenger commissions and other selling expenses 68,000,000 Landing fees and other rents 60,000,000 Aircraft maintenance materials and outside repairs 56,000,000 Aircraft rent 24,000,000 Passenger service 20,000,000 Restructuring, asset writedowns, pension settlements and related items, net 1,000,000 Other 44,000,000 --------------- Total operating expenses 1,257,000,000 --------------- OPERATING LOSS (5,000,000) --------------- OTHER INCOME (EXPENSE): Interest expense (contractual interest expense equals $90,000,000 for the month ended Feb. 28, 2007) (64,000,000) Interest income 3,000,000 Miscellaneous, net 23,000,000 --------------- Total other expense, net (38,000,000) --------------- LOSS BEFORE REORGANIZATION ITEMS, NET (43,000,000) REORGANIZATION ITEMS, NET 98,000,000 --------------- INCOME BEFORE INCOME TAXES 55,000,000 INCOME TAX BENEFIT -- --------------- NET INCOME $55,000,000 =============== DELTA AIR LINES, INC. Unaudited Condensed Consolidated Statement of Cash Flows For the Month ended February 28, 2007 NET CASH USED BY OPERATING ACTIVITIES ($138,000,000) CASH FLOWS FROM INVESTING ACTIVITIES: Property and equipment additions: Flight equipment, including advance payments (35,000,000) Ground property and equipment (2,000,000) Proceeds from sale of flight equipment 11,000,000 Proceeds from sale of investments 34,000,000 Decrease in restricted cash 26,000,000 --------------- Net cash provided by investing activities 34,000,000 CASH FLOWS FROM FINANCING ACTIVITIES: Payments on long-term debt and capital lease obligations (64,000,000) --------------- Net cash used by financing activities (64,000,000) --------------- Net decrease in cash and cash equivalents (168,000,000) Cash & cash equivalents at beginning of period 2,146,000,000 --------------- Cash & cash equivalents at end of period $1,978,000,000 =============== Headquartered in Atlanta, Ga., Delta Air Lines (OTC:DALRQ) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. The Company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. As of June 30, 2005, the Company's balance sheet showed $21.5 billion in assets and $28.5 billion in liabilities. (Delta Air Lines Bankruptcy News, Issue No. 67; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the adequacy of the Debtors' disclosure statement. The hearing to consider confirmation the Debtors' plan is scheduled on April 25, 2007. ENTERGY NEW ORLEANS: Posts $2.45 Million Net Loss in February 2007 ------------------------------------------------------------------ Entergy New Orleans, Inc. Unaudited Balance Sheet As of February 28, 2007 (in thousands) ASSETS Current Assets: Cash and cash equivalents Cash $662 Temporary cash investments 19,592 ---------- Total cash and cash equivalents 20,254 Accounts receivable: Customer 67,819 Allowance for doubtful accounts (10,563) Associated companies 25,356 Other 9,043 Accrued unbilled revenues 21,171 ---------- Total accounts receivable 112,826 Deferred fuel costs 10,254 Fuel inventory 66 Materials and supplies 7,225 Prepayments and other 10,386 ---------- Total current assets 161,011 Other Property and Investments Investment in affiliates 3,259 Non-utility property at cost 1,107 ---------- Total other property and investments 4,366 Utility Plant Electric 701,127 Natural gas 189,946 Construction work in progress 20,027 ---------- Total Utility Plant 911,100 Less - accumulated depreciation and amortization 464,133 ---------- Utility plant - net 446,967 Deferred Debits and Other Assets Regulatory assets: Other regulatory assets 293,610 Long term receivables 936 Other 10,024 ---------- Total deferred debits and other assets 304,570 ---------- TOTAL ASSETS $916,914 ========== LIABILITIES: Postpetition liabilities: Taxes payable $4,255 Accounts payable 24,473 DIP credit facility 49,434 ---------- Total postpetition liabilities 78,162 Current liabilities: Currently maturing long-term debt 0 Notes payable 0 Accounts payable: Associated companies 72,313 Other 70,898 Customer deposits 15,795 Taxes accrued 3,195 Accumulated deferred income taxes 0 Interest accrued 16,729 Energy efficiency program provision 0 Other 6,464 ---------- Total current liabilities 185,394 Non-current liabilities: Accumulated deferred income taxes & taxes accrued 98,088 Accumulated deferred investment tax credits 3,096 SFAS 109 regulatory liability - net 71,770 Other regulatory liabilities 0 Accumulated provisions 8,735 Pension liability 59,806 Long-term debt 229,877 Other 8,218 --------- Total non-current liabilities 479,590 --------- Total Liabilities 743,146 Commitments and Contingencies: SHAREHOLDERS' EQUITY Preferred stock without sinking fund 19,780 Common stock, $4 par value, authorized 10,000,000 shares; issued and outstanding 8,435,900 shares in 2007, 2006, and 2005 33,744 Paid-in capital 36,294 Retained earnings -- prepetition 99,593 Retained earnings -- postpetition (15,643) ---------- Total shareholders equity 173,768 ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $916,914 ========== Entergy New Orleans, Inc. Unaudited Statement of Operations Month Ended February 28, 2007 (in thousands) Operating Revenues: Domestic electric $41,112 Natural gas 17,046 ---------- Total operating revenues 58,158 Operating Expenses: Operation and maintenance Fuel 30,105 Purchased power 13,397 Other operation and maintenance 9,982 Taxes other than income taxes 3,558 Depreciation and amortization 2,705 Other regulatory charges - net 344 ---------- Total operating expenses 60,091 ---------- Operating income (1,933) Other income: Allowance for equity funds used during construction 337 Interest and dividend income 893 Miscellaneous - net (35) ---------- Total other income 1,195 Interest and other charges: Interest on long-term debt 1,082 Other interest-net 2,394 Allowance for borrowed funds used during construction (250) ---------- Total interest and other charges 3,226 Income (loss) before income taxes (3,964) Income taxes (1,512) ---------- NET INCOME ($2,452) ========== Entergy New Orleans, Inc. Cash Receipts and Disbursement Statement Month Ended February 28, 2007 Beginning cash balance $558,439 Cash receipts 84,872,089 Cash disbursements (84,768,401) ---------- Net cash flow 103,688 ---------- ENDING CASH BALANCE $662,127 ========== Headquartered in Baton Rouge, Louisiana, Entergy New Orleans Inc. -- http://www.entergy-neworleans.com/-- is a wholly owned subsidiary of Entergy Corporation. Entergy New Orleans provides electric and natural gas service to approximately 190,000 electric and 147,000 gas customers within the city of New Orleans. Entergy New Orleans is the smallest of Entergy Corporation's five utility companies and represents about 7% of the consolidated revenues and 3% of its consolidated earnings in 2004. Neither Entergy Corporation nor any of Entergy's other utility and non-utility subsidiaries were included in Entergy New Orleans' bankruptcy filing. Entergy New Orleans filed for chapter 11 protection on Sept. 23, 2005 (Bankr. E.D. La. Case No. 05-17697). Elizabeth J. Futrell, Esq., and R. Partick Vance, Esq., at Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P., represent the Debtor in its restructuring efforts. Carey L. Menasco, Esq., Philip Kirkpatrick Jones, Jr., Esq., and Joseph P. Hebert, Esq., at Liskow & Lewis, APLC, represent the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed total assets of $703,197,000 and total debts of $610,421,000. (Entergy New Orleans Bankruptcy News, Issue No. 42 Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) FEDERAL-MOGUL: Earns $8.2 Million in February 2007 -------------------------------------------------- Federal-Mogul Global, Inc., et al. Unaudited Balance Sheet As of February 28, 2007 (In millions) Assets Cash and equivalents $64.5 Accounts receivable 575.2 Inventories 434.5 Deferred taxes 191.3 Prepaid expenses and other current assets 91.2 -------- Total current assets 1,356.6 Summary of Unpaid Postpetition Debits (34.1) Intercompany Loans Receivable (Payable) 1,620.1 -------- Intercompany Balances 1,586.0 Property, plant and equipment 810.6 Goodwill 967.1 Other intangible assets 343.9 Insurance recoverable 860.8 Other non-current assets 487.6 -------- Total Assets $6,412.7 ======== Liabilities and Shareholders' Equity Short-term debt $374.8 Accounts payable 223.5 Accrued compensation 87.8 Restructuring and rationalization reserves 21.5 Current portion of asbestos liability - Interest payable 4.3 Other accrued liabilities 231.7 -------- Total current liabilities 943.6 Long-term debt - Post-employment benefits 753.0 Other accrued liabilities 523.3 Liabilities subject to compromise 5,810.1 Shareholders' equity: Preferred stock 1,050.6 Common stock 658.1 Additional paid-in capital 7,986.8 Accumulated deficit (11,402.9) Accumulated other comprehensive income 90.0 Other - -------- Total Shareholders' Equity (1,617.2) -------- Total Liabilities and Shareholders' Equity $6,412.7 ======== Federal-Mogul Global, Inc., et al. Unaudited Statement of Operations For the Month Ended February 28, 2007 (In millions) Net sales $250.5 Cost of products sold 208.7 -------- Gross margin 41.8 Selling, general & administrative expenses (42.5) Amortization (1.2) Reorganization items (0.2) Interest expense, net (14.8) Other expense, net 25.4 -------- Earnings before Income Taxes 8.5 Income Tax (Expense) Benefit (0.3) -------- Earnings before cumulative effect of change in acctg. Principle 8.2 -------- Net Earnings (loss) $8.2 ======== Federal-Mogul Global, Inc., et al. Unaudited Statement of Cash Flows For the month ended February 28, 2007 (In millions) Cash Provided From (Used By) Operating Activities: Net earning (loss) $8.2 Adjustments to reconcile net earnings (loss) to net cash: Depreciation and amortization 12.6 Adjustment of assets held for sale and other long-lived assets to fair value - Asbestos charge - Summary of unpaid postpetition debits - Cumulative effect of change in acctg. Principle - Change in post-employment benefits 0.5 Decrease (increase) in accounts receivable (24.7) Decrease (increase) in inventories 4.0 Increase (decrease) in accounts payable 2.4 Change in other assets & other liabilities 3.1 Change in restructuring charge - Refunds (payments) against asbestos liability - -------- Net Cash Provided From Operating Activities 6.2 Cash Provided From (Used By) Investing Activities: Expenditures for property, plant & equipment (1.6) Proceeds from sale of property, plant & equipment - Proceeds from sale of businesses - Business acquisitions, net of cash acquired - Other - -------- Net Cash Provided From (Used By) Investing Activities (1.6) Cash Provided From (Used By) Financing Activities: Increase (decrease) in debt 17.1 Sale of accounts receivable under securitization - Dividends - Other - -------- Net Cash Provided From Financing Activities 17.1 Increase (Decrease) in Cash and Equivalents 21.7 Cash and equivalents at beginning of period 42.8 -------- Cash and equivalents at end of period $64.5 ======== Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some US$6 billion. The company has also has operations in Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. They then submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The confirmation hearing is set for May 8, 2007. (Federal-Mogul Bankruptcy News, Issue No. 132; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). MORTGAGE LENDERS: Posts $76.6 Million Net Loss in February 2007 --------------------------------------------------------------- Mortgage Lenders Network USA, Inc. Balance Sheet As of February 28, 2007 Assets: Cash and Cash Equivalents $7,053,980 Mortgage loans held for sale 382,242,609 Portfolio loans 14,714,041 Allowance for loan losses (24,416,021) Capitalized Mortgage Servicing rights, net 0 Retained interests in securitization, at fair value 0 Furniture, fixtures, equipment, an software, net 20,849,524 Deferred Costs 0 Principal & Interest Advances 1,749,729 Interest in subsidiaries 13,025,892 Other Assets 19,990,412 ------------ Total Assets $435,210,165 ============ Liabilities: Accounts Payable prepetition $14,118,637 Accounts Payable postpetition 196,119 Accrued Expenses - Payroll 874,888 Accrued Expenses - Other 21,298,307 Warehouse Borrowings 383,818,553 Convertible Debt 1,500,000 Servicing & Working Capital Advances 54,408,435 Capital Lease Liability 6,258 Other liabilities 32,444,043 ------------ Total Liabilities 508,665,239 Stockholders' Equity: Common Stock 625,000 Additional Paid-In Capital 1,829,770 Retained Earnings (75,909,843) ------------ Total Stockholders' Equity (73,455,073) ------------ Total Debts & Stockholders' Equity $435,210,165 ============ Mortgage Lenders Network USA, Inc. Income Statement Month Ended February 28, 2007 Revenue Gain on Sale - Subprime ($24,535) Gain on Sale - SRP/MBS (68,791,504) Mortgage origination income (1,129) Net Warehouse interest income 1,881,968 Servicing income, net 5,571,405 Other Income 517,075 ------------ Total Revenues (60,846,720) ------------ Expenses Salaries 13,454,768 Overtime/Temp Help 56,080 Bonus/Incentives 1,500 Benefits 109,698 Rent Expense 35,408 Telephone 214,904 Repairs & Maintenances 27,975 Office & Supplies Expense 38,555 Postage/Express Mail 6,055 Service Bureau 293,765 Consulting Fees 147,403 Insurance 0 Loan Loss/Foreclosure Exp. 80,994 Appraisal/Credit Expenses 44,294 Travel & Entertainment 428 Meetings/Seminars/Education 1,560 Membership Fees/Dues/Filings 8,879 Advertising - Other 77,656 Interest Expense - Other 6,453 Legal/Regulatory Expenses 95,069 Miscellaneous Expenses 760,435 ------------ Total Expenses Before Depreciation 15,461,881 Depreciation Expense 289,447 ------------ Net Profit Before Reorganization Items (76,598,048) Reorganization Items Professional Fees 82,217 ------------ Total Reorganization Items 82,217 Income Taxes 0 ------------ Net Income (Loss) ($76,680,265) ============ Mortgage Lenders Network USA, Inc. Schedule of Cash Receipts and Disbursements Month Ended February 28, 2007 Receipts: Net Servicing Inflows 1,764,965 Warehouse and Loan Sale Inflows (238,173) Sale of Fixed Assets 0 Sale of Other Assets 0 Other Inflows 1,016,761 Transfers from Cash Collateral 0 ------------ Total Receipts 2,543,553 Disbursements: Net Payroll 968,185 Payroll Taxes 130,771 Medical Coverage Sub/ FSA Withholding 32,040 Operating Expenses (6,990) Rent 0 Utilities 44,694 Insurance 0 Administrative & Selling 0 Other 0 Professional Fees Escrow Account 0 U.S. Trustee Fees 0 DIP Fees 50,000 Transfers to Cash Collateral 0 ------------ Total Disbursements 1,218,700 ------------ Net Cash Flow $1,324,853 ============ During February, the Debtor paid 82,217 in professional fees to Scouler Andrews. Since the Petition Date, the Debtor has paid $270,289 to Scouler Andrews, $00,000 to Pachulski, Stang, Ziel, Young, and $25,000 to The Trumbull Group. Middletown, Conn.-based Mortgage Lenders Network USA Inc. -- http://www.mlnusa.com/-- is a privately held company offering a full range of Alt-A/Non-Conforming and Conforming loan products through its retail and wholesale channels. The company filed for chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No. 07-10146). Pachulski Stang Ziehl Young Jones & Weintraub LLP represents the Debtor. Blank Rome LLP represents the Official Committee of Unsecured Creditors. In the Debtor's schedules of assets and liabilities filed with the Court, it disclosed total assets of $464,847,213 and total debts of $556,459,464. The Debtor's exclusive period to file a chapter 11 plan expires on June 5, 2007. (Mortgage Lenders Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). NORTHWEST AIRLINES: Posts $33 Million Net Loss in February 2007 --------------------------------------------------------------- Northwest Airlines Corporation Unaudited Condensed Consolidated Balance Sheet As of February 28, 2007 ASSETS Current assets: Cash and cash equivalents $1,769,000,000 Unrestricted short-term investments 607,000,000 Restricted cash, cash equivalents & short-term investments 462,000,000 Accounts receivable, net 646,000,000 Flight equipment spare parts, net 101,000,000 Prepaid expenses & other 378,000,000 --------------- Total current assets 3,963,000,000 Property and equipment: Flight equipment, net 7,813,000,000 Other property & equipment, net 564,000,000 --------------- Total property & equipment 8,377,000,000 Flight Equipment under capital leases, net 12,000,000 Other assets: International routes 634,000,000 Investments in affiliated companies 41,000,000 Other 547,000,000 --------------- Total other assets 1,222,000,000 --------------- Total assets $13,574,000,000 =============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Air traffic liability $1,850,000,000 Accounts payable & other liabilities 1,470,000,000 Current maturities of long-term debt & capital lease obligations 216,000,000 --------------- Total current liabilities 3,536,000,000 Long-term debt 4,024,000,000 Deferred Credits & other liabilities: Long-term pension & postretirement Health care benefits 87,000,000 Other 162,000,000 --------------- Total deferred credits & other liabilities 249,000,000 Liabilities Subject to Compromise 13,859,000,000 Preferred redeemable stock subject to Compromise 275,000,000 Common Stockholders' Equity (Deficit) Common stock 1,000,000 Additional paid-in capital 1,507,000,000 Accumulated deficit (7,766,000,000) Accumulated other comprehensive income (loss) (1,098,000,000) Treasury stock (1,013,000,000) --------------- Total common stockholders' equity (deficit) (8,369,000,000) --------------- Total Liabilities & Stockholders' Equity (deficit) $13,574,000,000 =============== Northwest Airlines Corporation Unaudited Condensed Consolidated Statement of Operations For Month Ended February 28, 2007 Operating Revenues Passenger $659,000,000 Regional carrier revenues 88,000,000 Cargo 56,000,000 Other 70,000,000 --------------- Total Operating Revenues 873,000,000 Operating Expenses Aircraft fuel and taxes 197,000,000 Salaries, wages, and benefits 189,000,000 Selling and marketing 63,000,000 Aircraft maintenance materials and repair 62,000,000 Other rentals and landing fees 45,000,000 Depreciation and amortization 42,000,000 Aircraft rentals 32,000,000 Regional carrier expenses 66,000,000 Other 128,000,000 --------------- Total Operating Expenses 824,000,000 Operating Income (Loss) 49,000,000 Other Income (Expense) Interest expense, net (42,000,000) Investment income 11,000,000 Reorganization items, net (48,000,000) Other, net (3,000,000) --------------- Total other income (expense) (82,000,000) --------------- Income (Loss) Before Income Taxes (33,000,000) Income tax expense (benefit) - --------------- Net Income (Loss) ($33,000,000) =============== Northwest Airlines Corporation Unaudited Condensed Consolidated Statements of Cash Flows For Month Ended February 28, 2007 Cash Flows from Operating Activities: Net income (loss) ($33,000,000) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 42,000,000 Pension and other postretirement benefit contributions less than expense (14,000,000) Changes in certain assets & liabilities 60,000,000 Long-term vendor deposits/holdbacks 94,000,000 Reorganization items 48,000,000 Other, net 6,000,000 --------------- Net cash provided by operating activities 203,000,000 Cash Flows from Reorganization Activities: Net cash provided by (used in) reorganization activities 5,000,000 Cash Flows from Investing Activities: Capital expenditures (60,000,000) Proceeds from sales of short term investment 10,000,000 Decrease (increase) in restricted cash, cash equivalents & short-term investments 51,000,000 Other, net 1,000,000 --------------- Net cash provided by (used in) investing activities 2,000,000 Cash Flows from Financing Activities: Proceeds from long-term debt - Payments of long-term debt and capital lease obligations (63,000,000) Other, net - --------------- Net cash provided by (used in) financing activities (63,000,000) --------------- Increase (Decrease) in Cash and Cash Equivalents 147,000,000 Cash & cash equivalents at beginning of period 1,622,000,000 --------------- Cash & cash equivalents at end of period $1,769,000,000 =============== Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/ -- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The Company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for protection from their creditors, they listed $14.4 billion in total assets and $17.9 billion in total debts. (Northwest Airlines Bankruptcy News, Issue No. 65; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) Plan Update On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed wan Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. The hearing to consider confirmation of the Debtors' Plan is set for May 16, 2007. PACIFIC LUMBER: Scotia Development's January 2007 Operating Report ------------------------------------------------------------------ Scotia Development LLC, et al. Consolidated Balance Sheet As of January 31, 2007 ASSETS Current Assets Cash $2,968,040 Accounts receivable, net 9,173,253 Inventory: lower cost or market 37,528,000 Prepaid expenses 6,144,248 Investments - Other 632,784 ------------ Total Current Assets 56,446,325 Property, Plant & Equipment 211,583,221 Less: Accumulated Depreciation (131,783,465) ------------ Net book value of property & plant 79,799,756 Other Assets Notes receivable 731,878 Deferred financing costs 6,077,580 Long-term investments & other assets 2,091,542 Restricted cash 2,412,715 Deferred tax assets 14,050,772 ------------ TOTAL ASSETS $161,610,567 ============ LIABILITIES & OWNERS EQUITY Postpetition Liabilities Trade accounts payable $2,385,195 Tax payable Federal payroll taxes 121,573 State payroll taxes 99,840 Ad valorem taxes - Other taxes 33,876 ------------ Total taxes payable 255,289 Secured debt postpetition - Accrued interest payable 1,270,124 Accrued professional fees 557,896 Other accrued liabilities Compensation and benefits 128,212 Other 17,694 ------------ Total Postpetition Liabilities 4,614,410 Prepetition Liabilities Notes payable - Secured 113,302,270 Priority debt 8,391,701 Federal income tax (276,507) FICA/ Withholding 360,129 Unsecured debt 1,613,301 Other 55,180,894 Due to Affiliate/Parent 41,635,439 ------------ Total Prepetition Liabilities 220,207,227 ------------ Total Liabilities 224,821,637 Owner's Equity (Deficit) Equity in Affiliates 477,947,048 Common Stock 1,001 Additional Paid-in Capital 275,546,288 Retained Earnings: Filing Date (810,274,559) Retained Earnings: Post Filing Date (6,430,848) ------------ Total Owner's Equity (63,211,070) ------------ TOTAL LIABILITIES & OWNERS EQUITY $161,610,567 ============ Scotia Development LLC, et al. Statement of Income For the Period Ended January 31, 2007 Revenues $4,374,930 Total cost of revenues 5,498,166 ------------ Gross Profit (1,123,236) Operating Expenses Selling & Marketing 78,372 General & Administrative 284,199 Insiders Compensation 51,610 Professional Fees 557,896 Idle Facilities 92,838 Environmental 30,672 ------------ Total Operating Expenses 1,095,587 ------------ Income before interest, depreciation, tax (2,218,823) Interest Expense 1,270,124 Depreciation 536,159 Other (Income) Expenses (33,060) Amortization of Deferred Financing Costs 132,000 Equity Loss (Earnings) in Subsidiary 2,318,571 Total Interest, Depreciation & Other Items 4,223,794 ------------ Net Income Before Taxes (6,442,617) Federal Income Tax (11,769) ------------ Net Income (Loss) ($6,430,848) ============ Scotia Development LLC, et al. Cash Receipts and Disbursements For the Month Ended January 31, 2007 Receipts Cash Sales $5,619 Collection of Accounts Receivable 3,989,698 Loans & Advances 1,660,756 Sale of Assets - Other 7,186 ------------ Total Receipts 5,663,259 Disbursements Net payroll 674,881 Payroll txes paid 246,446 Sales, use & other taxes paid 3,061 Secured/rentals/leases - Utilities & telephone - Insurance 264,251 Cost of goods sold 669,048 Vehicle expenses 26,708 Travel & entertainment - Repairs, maintenance & supplies 134,694 Administrative & selling 178,399 Other 1,762,438 ------------ Total Disbursements from operations 3,959,926 Professional fees - U.S. Trustee fees - Other reorganization expenses - ------------ Total Disbursements 3,959,926 ------------ Net Cash Flow 1,703,333 ------------ Cash, at the beginning of the month 1,264,707 ------------ Cash, at the end of the month $2,968,040 ============ Headquartered in Oakland, California, The Pacific Lumber Company -- http://www.palco.com/-- and its subsidiaries operate in several principal areas of the forest products industry, including the growing and harvesting of redwood and Douglas-fir timber, the milling of logs into lumber and the manufacture of lumber into a variety of finished products. Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned subsidiaries of Pacific Lumber. Scotia Pacific, Pacific Lumber's largest operating subsidiary, was established in 1993, in conjunction with a securitization transaction pursuant to which the vast majority of Pacific Lumber's timberlands were transferred to Scotia Pacific, and Scotia Pacific issued Timber Collateralized Notes secured by substantially all of Scotia Pacific's assets, including the timberlands. Pacific Lumber, Scotia Pacific, and four other subsidiaries filed for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case Nos. 07-20027 through 07-20032). Jeffrey L. Schaffer, Esq., William J. Lafferty, Esq., and Gary M. Kaplan, Esq., at Howard Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation is Pacific Lumber's lead counsel. Nathaniel Peter Holzer, Esq., Harlin C. Womble, Jr. , Esq., and Shelby A. Jordan, Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co- counsel. Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead counsel. John F. Higgins, Esq., and James Matthew Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-counsel. When Pacific Lumber filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. Scotia Pacific listed total assets of $932,000,000 and total debts of $765,978,335. The Debtors' exclusive period to file a chapter 11 plan expires on May 18, 2007. (Scotia/Pacific Lumber Bankruptcy News, Issue No. 12, http://bankrupt.com/newsstand/or 215/945-7000). PACIFIC LUMBER: Scotia Development's Feb. 2007 Operating Report --------------------------------------------------------------- Scotia Development LLC, et al. Consolidated Balance Sheet As of February 28, 2007 ASSETS Current Assets Cash $4,940,410 Accounts receivable, net 9,540,173 Inventory: lower cost or market 30,821,000 Prepaid expenses 5,767,247 Investments 0 Other 637,714 ------------ Total Current Assets 51,706,544 Property, Plant & Equipment 211,935,885 Less: Accumulated Depreciation (132,634,712) ------------ Net book value of property & plant 79,301,173 Other Assets Notes receivable 724,405 Deferred financing costs 5,850,963 Long-term investments & other assets 2,250,185 Restricted cash 2,412,715 Deferred tax assets 14,050,772 ------------ TOTAL ASSETS $156,296,757 ============ LIABILITIES & OWNERS EQUITY Postpetition Liabilities Trade accounts payable $581,042 Tax payable Federal payroll taxes 83,846 State payroll taxes 109,789 Ad valorem taxes 0 Other taxes 103,977 ------------ Total taxes payable 297,612 Secured debt postpetition 0 Accrued interest payable 2,515,005 Accrued professional fees 1,381,578 Other accured liabilities Compensation and benefits (14,204) Other 102,543 ------------ Total Postpetition Liabilities 4,863,576 Prepetition Liabilities Notes payable - Secured 113,302,270 Priority debt 8,136,930 Federal income tax (276,507) FICA/ Withholding 334,221 Unsecured debt 2,973,279 Other 54,414,229 Due to Affiliate/Parent 41,635,439 ------------ Total Prepetition Liabilities 220,519,861 ------------ Total Liabilities 225,383,437 Owner's Equity (Deficit) Equity in Affiliates 478,332,873 Common Stock 1,001 Additional Paid-in Capital 275,546,288 Retained Earnings: Filing Date (810,281,507) Retained Earnings: Post Filing Date (12,685,334) ------------ Total Owner's Equity (69,086,679) ------------ TOTAL LIABILITIES & OWNERS EQUITY $156,296,758 ============ Scotia Development LLC, et al. Consolidated Statement of Income For the Period Ended February 28, 2007 Revenues $9,761,491 Total cost of revenues 11,670,293 ------------ Gross Profit (1,908,802) Operating Expenses Selling & Marketing 83,285 General & Administrative 465,266 Insiders Compensation 120,424 Professional Fees 823,682 Idle Facilities 78,738 Environmental 21,258 ------------ Total Operating Expenses 1,592,653 ------------ Income before interest, depreciation, tax (3,501,455) Interest Expense 1,244,881 Depreciation 940,251 Other (Income) Expenses (42,425) Amortization of Deferred Financing Costs 225,900 Equity Loss (Earnings) in Subsidiary 384,424 Total Interest, Depreciation & Other Items 2,753,031 ------------ Net Income Before Taxes (6,254,486) Federal Income Tax 0 ------------ Net Income (Loss) ($6,254,486) ============ Scotia Development LLC, et al. Cash Receipts and Disbursements For the Month Ended February 28, 2007 Receipts Cash Sales $93,634 Collection of Accounts Receivable 9,146,146 Loans & Advances 3,040 Sale of Assets 0 Other 305,143 ------------ Total Receipts 9,547,962 Disbursements Net payroll 1,230,206 Payroll taxes paid 540,579 Sales, use & other taxes paid 41,982 Secured/rentals/leases 1,804 Utilities & telephone 105,888 Insurance 621,055 Cost of goods sold 2,592,276 Vehicle expenses 31,851 Travel & entertainment 12,701 Repairs, maintenance & supplies 478,012 Administrative & selling 481,756 Other 1,437,480 ------------ Total Disbursements from operations 7,575,592 Professional fees - U.S. Trustee fees - Other reorganization expenses - ------------ Total Disbursements 7,575,592 ------------ Net Cash Flow 1,972,370 ------------ Cash, at the beginning of the month 2,968,040 ------------ Cash, at the end of the month $4,940,410 ============ Headquartered in Oakland, California, The Pacific Lumber Company -- http://www.palco.com/-- and its subsidiaries operate in several principal areas of the forest products industry, including the growing and harvesting of redwood and Douglas-fir timber, the milling of logs into lumber and the manufacture of lumber into a variety of finished products. Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned subsidiaries of Pacific Lumber. Scotia Pacific, Pacific Lumber's largest operating subsidiary, was established in 1993, in conjunction with a securitization transaction pursuant to which the vast majority of Pacific Lumber's timberlands were transferred to Scotia Pacific, and Scotia Pacific issued Timber Collateralized Notes secured by substantially all of Scotia Pacific's assets, including the timberlands. Pacific Lumber, Scotia Pacific, and four other subsidiaries filed for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case Nos. 07-20027 through 07-20032). Jeffrey L. Schaffer, Esq., William J. Lafferty, Esq., and Gary M. Kaplan, Esq., at Howard Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation is Pacific Lumber's lead counsel. Nathaniel Peter Holzer, Esq., Harlin C. Womble, Jr. , Esq., and Shelby A. Jordan, Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co- counsel. Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead counsel. John F. Higgins, Esq., and James Matthew Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-counsel. When Pacific Lumber filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. Scotia Pacific listed total assets of $932,000,000 and total debts of $765,978,335. The Debtors' exclusive period to file a chapter 11 plan expires on May 18, 2007. (Scotia/Pacific Lumber Bankruptcy News, Issue No. 12, http://bankrupt.com/newsstand/or 215/945-7000). PACIFIC LUMBER: Scotia Pacific Earns $602,006 in January 2007 ------------------------------------------------------------- Scotia Pacific Company LLC Consolidated Balance Sheet As of January 31, 2007 ASSETS Current Assets Cash $46,692,132 Accounts receivable, net 3,079,276 Inventory: lower cost or market 0 Prepaid expenses 6,178,318 Investments 0 Other 667,953 ------------ Total Current Assets 56,617,679 Property, Plant & Equipment 610,330,711 Less: Accumulated Depreciation (368,111,115) ------------ Net book value of property & plant 242,219,596 Other Assets Notes receivable Deferred financing costs Long-term investments & other assets Restricted cash Capitalized Expenses 11,003,624 Deferred tax assets ------------ TOTAL ASSETS $309,840,900 ============ LIABILITIES & OWNERS EQUITY Postpetition Liabilities Trade accounts payable $0 Tax payable Federal payroll taxes 16,980 State payroll taxes 17,957 Ad valorem taxes 0 Other taxes 52,961 ------------ Total taxes payable 87,899 Secured debt postpetition 0 Accrued interest payable 54,930 Accrued professional fees 0 Other accured liabilities Unsecured Debt 259,592 Payroll 140,109 Other 34,136 ------------ Total Postpetition Liabilities 576,664 Prepetition Liabilities Notes payable - Secured 766,107,876 Priority debt 526,976 Federal income tax 0 FICA/ Withholding 0 Unsecured debt 2,946,635 Other 916,483 Due to Affiliate/Parent ------------ Total Prepetition Liabilities 770,497,971 ------------ Total Liabilities 771,074,635 Owner's Equity (Deficit) Equity in Affiliates Common Stock 20,384,905 Additional Paid-in Capital 179,838,186 Retained Earnings: Filing Date (662,058,832) Retained Earnings: Post Filing Date 602,006 ------------ Total Owner's Equity (461,233,735) ------------ TOTAL LIABILITIES & OWNERS EQUITY $309,840,900 ============ Scotia Pacific Company LLC Consolidated Statement of Income For the Period Ended January 31, 2007 Revenues $1,321,071 Total cost of revenues 411,027 ------------ Gross Profit 910,044 Operating Expenses Selling & Marketing General & Administrative 125,906 Insiders Compensation Professional Fees Idle Facilities Environmental ------------ Total Operating Expenses 125,906 ------------ Income before interest, depreciation, tax 784,138 Interest Expense (9,485) Depreciation 276,701 Other (Income) Expenses (83,870) Restructuring (1,215) Amortization of Deferred Financing Costs Equity Loss (Earnings) in Subsidiary Total Interest, Depreciation & Other Items 182,132 ------------ Net Income Before Taxes 602,006 Federal Income Tax 0 ------------ Net Income (Loss) $602,006 ============ Scotia Pacific Company LLC Cash Receipts and Disbursements For the Month Ended January 31, 2007 Receipts Cash Sales $0 Collection of Accounts Receivable Loans & Advances Sale of Assets 100,724 Other 1,037 ------------ Total Receipts 101,761 Disbursements Net payroll 136,549 Payroll taxes paid - Sales, use & other taxes paid - Secured/rentals/leases - Utilities & telephone - Insurance - Cost of goods sold - Vehicle expenses 20 Travel & entertainment - Repairs, maintenance & supplies - Administrative & selling 95,227 Other - ------------ Total Disbursements from operations 231,796 Professional fees - U.S. Trustee fees - Other reorganization expenses - ------------ Total Disbursements 231,796 ------------ Net Cash Flow (130,035) ------------ Cash, at the beginning of the month 46,822,167 ------------ Cash, at the end of the month $46,692,132 ============ Headquartered in Oakland, California, The Pacific Lumber Company -- http://www.palco.com/-- and its subsidiaries operate in several principal areas of the forest products industry, including the growing and harvesting of redwood and Douglas-fir timber, the milling of logs into lumber and the manufacture of lumber into a variety of finished products. Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned subsidiaries of Pacific Lumber. Scotia Pacific, Pacific Lumber's largest operating subsidiary, was established in 1993, in conjunction with a securitization transaction pursuant to which the vast majority of Pacific Lumber's timberlands were transferred to Scotia Pacific, and Scotia Pacific issued Timber Collateralized Notes secured by substantially all of Scotia Pacific's assets, including the timberlands. Pacific Lumber, Scotia Pacific, and four other subsidiaries filed for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case Nos. 07-20027 through 07-20032). Jeffrey L. Schaffer, Esq., William J. Lafferty, Esq., and Gary M. Kaplan, Esq., at Howard Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation is Pacific Lumber's lead counsel. Nathaniel Peter Holzer, Esq., Harlin C. Womble, Jr. , Esq., and Shelby A. Jordan, Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co- counsel. Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead counsel. John F. Higgins, Esq., and James Matthew Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-counsel. When Pacific Lumber filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. Scotia Pacific listed total assets of $932,000,000 and total debts of $765,978,335. The Debtors' exclusive period to file a chapter 11 plan expires on May 18, 2007. (Scotia/Pacific Lumber Bankruptcy News, Issue No. 12, http://bankrupt.com/newsstand/or 215/945-7000). PACIFIC LUMBER: Scotia Pacific Posts $1.6MM Net Loss in Feb. 2007 ----------------------------------------------------------------- Scotia Pacific Company LLC Consolidated Balance Sheet As of February 28, 2007 ASSETS Current Assets Cash $47,175,958 Accounts receivable, net 3,244,141 Inventory: lower cost or market 0 Prepaid expenses 6,092,870 Investments 0 Other 713,469 ------------ Total Current Assets 57,226,439 Property, Plant & Equipment 610,774,210 Less: Accumulated Depreciation (368,534,068) ------------ Net book value of property & plant 242,240,142 Other Assets Notes receivable - Deferred financing costs - Long-term investments & other assets - Restricted cash - Capitalized Expenses 10,830,297 Deferred tax assets - ------------ TOTAL ASSETS $310,296,877 ============ LIABILITIES & OWNERS EQUITY Postpetition Liabilities Trade accounts payable $0 Tax payable Federal payroll taxes 6,796 State payroll taxes 34,113 Ad valorem taxes 0 Other taxes 145,973 ------------ Total taxes payable 186,882 Secured debt postpetition 0 Accrued interest payable 240,095 Accrued professional fees 1,180,403 Other accured liabilities Unsecured Debt 922,969 Payroll 146,757 Other 104,200 ------------ Total Postpetition Liabilities 2,781,306 Prepetition Liabilities Notes payable - Secured 766,120,353 Priority debt 526,976 Federal income tax 0 FICA/ Withholding 0 Unsecured debt 2,862,255 Other 912,668 Due to Affiliate/Parent ------------ Total Prepetition Liabilities 770,422,253 ------------ Total Liabilities 773,203,558 Owner's Equity (Deficit) Equity in Affiliates Common Stock 20,384,905 Additional Paid-in Capital 179,838,186 Retained Earnings: Filing Date (662,058,832) Retained Earnings: Post Filing Date (1,070,940) ------------ Total Owner's Equity (462,906,681) ------------ TOTAL LIABILITIES & OWNERS EQUITY $310,296,877 ============ Scotia Pacific Company LLC Consolidated Statement of Income For the Period Ended February 28, 2007 Revenues $1,484,570 Total cost of revenues 954,921 ------------ Gross Profit 529,648 Operating Expenses Selling & Marketing - General & Administrative 258,957 Insiders Compensation - Professional Fees - Idle Facilities - Environmental - ------------ Total Operating Expenses 258,957 ------------ Income before interest, depreciation, tax 270,691 Interest Expense 261,008 Depreciation 499,061 Other (Income) Expenses 994 Restructuring 1,182,574 Amortization of Deferred Financing Costs Equity Loss (Earnings) in Subsidiary Total Interest, Depreciation & Other Items 1,943,637 ------------ Net Income Before Taxes (1,672,946) Federal Income Tax ------------ Net Income (Loss) ($1,672,946) ============ Scotia Pacific Company LLC Cash Receipts and Disbursements For the Month Ended February 28, 2007 Receipts Cash Sales $0 Collection of Accounts Receivable Loans & Advances Sale of Assets Interest Income 232,529 Log Sales 1,072,232 Other 0 ------------ Total Receipts 1,304,762 Disbursements Net payroll 227,311 Payroll txes paid 53,697 Sales, use & other taxes paid 0 Secured/rentals/leases 0 Utilities & telephone 159 Insurance 34,950 Cost of goods sold 0 Vehicle expenses 1,179 Travel & entertainment 1,201 Repairs, maintenance & supplies 2,622 Administrative & selling 499,817 Other 0 ------------ Total Disbursements from operations 820,936 Professional fees - U.S. Trustee fees - Other reorganization expenses - ------------ Total Disbursements 820,936 ------------ Net Cash Flow 483,826 ------------ Cash, at the beginning of the month 46,692,132 ------------ Cash, at the end of the month $47,175,958 ============ Headquartered in Oakland, California, The Pacific Lumber Company -- http://www.palco.com/-- and its subsidiaries operate in several principal areas of the forest products industry, including the growing and harvesting of redwood and Douglas-fir timber, the milling of logs into lumber and the manufacture of lumber into a variety of finished products. Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned subsidiaries of Pacific Lumber. Scotia Pacific, Pacific Lumber's largest operating subsidiary, was established in 1993, in conjunction with a securitization transaction pursuant to which the vast majority of Pacific Lumber's timberlands were transferred to Scotia Pacific, and Scotia Pacific issued Timber Collateralized Notes secured by substantially all of Scotia Pacific's assets, including the timberlands. Pacific Lumber, Scotia Pacific, and four other subsidiaries filed for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case Nos. 07-20027 through 07-20032). Jeffrey L. Schaffer, Esq., William J. Lafferty, Esq., and Gary M. Kaplan, Esq., at Howard Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation is Pacific Lumber's lead counsel. Nathaniel Peter Holzer, Esq., Harlin C. Womble, Jr. , Esq., and Shelby A. Jordan, Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co- counsel. Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead counsel. John F. Higgins, Esq., and James Matthew Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-counsel. When Pacific Lumber filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. Scotia Pacific listed total assets of $932,000,000 and total debts of $765,978,335. The Debtors' exclusive period to file a chapter 11 plan expires on May 18, 2007. (Scotia/Pacific Lumber Bankruptcy News, Issue No. 12, http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Posts $6 Million Net Loss in February 2007 ------------------------------------------------------- Solutia Chapter 11 Debtors Unaudited Statement of Consolidated Financial Position As of February 28, 2007 ASSETS Cash $80,000,000 Trade Receivables, net 186,000,000 Account Receivables-Unconsolidated Subsidiaries 54,000,000 Inventories 180,000,000 Other Current Assets 233,000,000 Assets of Discontinued Operations 0 -------------- Total Current Assets 733,000,000 Property, Plant and Equipment, net 657,000,000 Investments in Subsidiaries and Affiliates 572,000,000 Intangible Assets, net 100,000,000 Other Assets 70,000,000 -------------- Total Assets $2,132,000,000 ============== LIABILITIES AND SHAREHOLDERS' DEFICIT Accounts Payable $176,000,000 Short Term Debt 975,000,000 Other Current Liabilities 155,000,000 Liabilities of Discontinued Operations 1,000,000 -------------- Total Current Liabilities 1,307,000,000 Long-Term Debt 0 Other Long-Term Liabilities 195,000,000 -------------- Total Liabilities not Subject to Compromise 1,502,000,000 Liabilities Subject to Compromise 1,927,000,000 Shareholders' Deficit (1,297,000,000) -------------- Total Liabilities & Shareholders' Deficit $2,132,000,000 ============== Solutia Chapter 11 Debtors Unaudited Consolidated Statement of Operations For the Month Ended February 28, 2007 Total Net Sales $187,000,000 Total Cost Of Goods Sold 170,000,000 -------------- Gross Profit 17,000,000 Total MAT Expense 17,000,000 -------------- Operating Income (Loss) 0 Equity Earnings from Affiliates 3,000,000 Interest Expense, net (8,000,000) Other Income, net 3,000,000 Reorganization Items: Professional fees (4,000,000) Employee severance and retention costs 0 Other 0 -------------- (4,000,000) -------------- Loss Before Taxes (6,000,000) Income tax expense (benefit) 0 -------------- Net Loss ($6,000,000) ============== Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 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 Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). In February 2007, the Honorable Prudence Carter Beatty entered a bridge order extending the Debtors' exclusive period to file a plan until April 30, 2007. SONICBLUE INC: Files February 2007 Monthly Operating Report ----------------------------------------------------------- At Feb. 28, 2007, SONICblue Incorporated reports that it is sitting on $79,618,874 of cash, has accrued $646,234 in postpetition liabilities, and faces a $236,604,166 mountain of prepetition debts. A full-text copy of SONICblue Inc.'s February 2007 Monthly Operating Report is available at no charge at: http://researcharchives.com/t/s?1d20 Headquartered in Santa Clara, California, SONICblue Incorporated is involved in the converging Internet, digital media, entertainment and consumer electronics markets. The company, together with three of its wholly owned subsidiaries, Diamond Multimedia Systems, Inc., ReplayTV, Inc., and Sensory Science Corporation, filed for chapter 11 protection on Mar. 21, 2003 (Bankr. N.D. Calif. Case Nos. 03-51775 to 03-51778). Craig A. Barbarosh, Esq., at the Law Offices of Pillsbury Winthrop, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed assets totaling $342,871,000 and debts totaling $335,473,000. TOWER AUTOMOTIVE: Posts $14.7 Million Net Loss in February 2007 --------------------------------------------------------------- Tower Automotive, Inc., and Subsidiaries Unaudited Consolidated Balance Sheet As of February 28, 2007 (In Thousands) Cash and cash equivalents $163 Accounts receivable 109,429 Inventories 41,230 Prepaid tooling and other 29,619 ------------ TOTAL CURRENT ASSETS 180,441 ------------ Property, plant and equipment, net 464,036 Investment in and advances to affiliates 788,988 Other assets, net 34,931 ------------ TOTAL ASSETS $1,468,396 ============ CURRENT LIABILITIES NOT SUBJECT TO COMPROMISE: Current maturities of L-T debt and capital lease $3 obligations Current maturities of DIP borrowings 652,400 Accounts payable 98,111 Accrued liabilities 101,011 ------------ TOTAL CURRENT LIABILITIES 851,525 ------------ Liabilities subject to comprise: 1,291,928 Non-Current Liabilities Not Subject to Compromise: Long-term debt, net of current maturities 84,751 Other non-current liabilities 19,968 ------------ TOTAL LIABILITIES 2,248,172 ------------ STOCKHOLDERS' DEFICIT: (779,776) ------------ TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT: $1,468,396 ============ Tower Automotive, Inc., and Subsidiaries Unaudited Statement of Operations February 1 to 28, 2007 (In Thousands) Revenues $87,577 Cost of sales 86,949 ------------ Gross profit 628 Selling, general and administrative 4,932 expenses Restructuring & asset impairment 2,015 charges, net Other operating income 379 ------------ Operating income (loss) (6,698) Interest expense 7,683 Interest income (60) Intercompany interest (income)/expense (2,704) Chapter 11 and related reorganization items 2,958 ------------ Income (loss) before provision for income (14,575) taxes, equity in earnings of joint ventures, and minority interest Provision (benefit) for income taxes 152 Income (loss) before equity in earnings of (14,727) joint ventures Equity in earnings of joint ventures, net of tax (24) ------------ NET INCOME/(LOSS) ($14,751) ============ Tower Automotive, Inc., and Subsidiaries Unaudited Statement of Cash Flows February 1 to 28, 2007 (In Thousands) OPERATING ACTIVITIES: Net loss ($14,751) Adjustments required to reconcile net loss to net cash provided by (used in) operating activities: Chapter 11 & related reorganization items, net 1,482 Restructuring and asset impairment, net 2,549 Depreciation 7,697 Equity in earnings of joint ventures, net 24 Change in working capital & other operating items (13,359) ------------ Net cash provided by (used in) operating (16,358) activities: INVESTING ACTIVITIES: Cash disbursed for purchase of property, 3,273 plant and equipment ------------ Net cash used for investing activities 3,273 FINANCING ACTIVITIES: Proceeds from non-DIP borrowings - Repayments of non-DIP borrowings - Borrowings from DIP credit facility 117,000 Repayments of borrowings from DIP facility (105,000) ------------ Net cash provided by (used in) financing 12,000 activities ------------ Net change in cash and cash equivalents (1,085) ------------ Cash and Cash Equivalents, beginning of period 1,248 ------------ Cash and Cash Equivalents, end of period $163 ============ Headquartered in Grand Rapids, Michigan, Tower Automotive Inc. -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain, and Brazil. The Company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed US$787,948,000 in total assets and US$1,306,949,000 in total debts. The Debtors' exclusive period to file a chapter 11 plan of reorganization expired on March 30, 2007. The Debtors hope to file a chapter 11 plan by April 20, 2007. (Tower Automotive Bankruptcy News, Issue No. 58; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. 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. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Nikki Frances S. Fonacier, Tara Marie A. Martin, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***