/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/071103.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, November 3, 2007, Vol. 11, No. 261 Headlines ASARCO LLC: Files Monthly Operating Report for September 2007 CATHOLIC CHURCH: Davenport Posts $422,521 Net Loss in Sept. 2007 COLLINS & AIKMAN: Posts $27.8MM Net Loss in Month Ended Oct. 11 HANCOCK FABRICS: Files Operating Report for Month Ended October 6 HOMEBANC CORP: Files Monthly Operating Report for September 2007 HOMEBANC CORP: Files Amended Schedules of Assets and Liabilities HOMEBANC CORP: HomeBanc Mortgage Files Amended Schedules MUSICLAND HOLDING: Posts $159,000 Net Loss in August 2007 MUSICLAND HOLDING: Posts $540,000 Net Loss in September 2007 REMY WORLDWIDE: Remy Int'l Files Jan. '08 Initial Operating Report SOLUTIA INC: Posts $131MM Net Loss in Month Ended Sept. 30, 2007 VESTA INSURANCE: Gordon Gaines Files Sept. 2007 Operating Report VESTA INSURANCE: Florida Select Files Sept. 2007 Operating Report ********* ASARCO LLC: Files Monthly Operating Report for September 2007 ------------------------------------------------------------- ASARCO LLC, et al. Balance Sheet As of September 30, 2007 ASSETS Current Assets: Cash $809,967,000 Restricted Cash 28,186,000 Accounts receivable, net 152,882,000 Inventory 252,403,000 Prepaid expenses 3,121,000 Other current assets 30,279,000 --------------- Total Current Assets 1,276,839,000 Net property, plant and equipment 454,868,000 Other Assets Investments in subs 112,443,000 Advances to affiliates 421,000 Prepaid pension & retirement plan 0 Non-current deferred tax asset 40,951,000 Other 96,540,000 --------------- Total assets $1,982,062,000 =============== LIABILITIES Postpetition liabilities: Accounts payable $67,884,000 Accrued liabilities 229,480,000 Debtor-in-possession financing 0 --------------- Total postpetition liabilities 297,363,000 Prepetition liabilities: Not subject to compromise - credit 4,053,000 Not subject to compromise - other 86,653,000 Advances from affiliates 24,659,000 Subject to compromise 1,501,777,000 --------------- Total prepetition liabilities 1,617,141,000 --------------- Total liabilities $1,914,504,000 =============== OWNERS' EQUITY (DEFICIT) Common stock 508,325,000 Additional paid-in capital 104,578,000 Other comprehensive income (261,491,000) Retained earnings: filing date (1,062,099,000) --------------- Total prepetition owners' equity (710,687,000) Retained earnings: post-filing date 778,244,000 --------------- Total owners' equity (net worth) 67,558,000 Total liabilities and owners' equity $1,982,062,000 =============== ASARCO LLC, et al. Consolidated Statement of Operations Month Ended September 30, 2007 Sales $182,980,000 Cost of products and services 103,376,000 --------------- Gross profit 79,603,000 Operating expenses: Selling and general & admin expenses 2,664,000 Depreciation & amortization 3,087,000 Provision accretion expense of asset retirement obligation 163,000 --------------- Operating income 73,689,000 Interest expense 203,000 Interest income (3,757,000) Reorganization expenses 7,139,000 Other miscellaneous (income) expenses (7,509,000) --------------- Income (loss) before taxes 77,614,000 Income taxes 30,078,000 --------------- Net income (loss) $47,536,000 =============== ASARCO LLC, et al. Consolidated Cash Receipts & Disbursements Month Ended September 30, 2007 Receipts $183,380,000 Disbursements: Inventory material 28,770,000 Operating disbursements 58,848,000 Capital expenditures 2,858,000 --------------- Total disbursements 90,477,000 Operating cash flow 92,903,000 Reorganization disbursements 5,210,000 --------------- Net cash flow 87,693,000 Net payments to secured Lenders 0 --------------- Net change in cash 87,693,000 Beginning cash balance 750,460,000 --------------- Ending cash balances $838,153,000 =============== Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). The Debtors' exclusive period to file a plan expires on Feb. 11, 2008. (ASARCO Bankruptcy News, Issue No. 58; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Davenport Posts $422,521 Net Loss in Sept. 2007 ---------------------------------------------------------------- Diocese of Davenport in Iowa Statement of Financial Position As of September 30, 2007 ASSETS Current Assets Cash and cash equivalents - unrestricted $5,520,756 Cash and cash equivalents - restricted 2,447,085 Accounts receivable, net 185,867 Inventory - Prepaid expenses 1,321 Professional retainers 55,652 -------------- Total Current Assets 8,210,681 -------------- Property and Equipment Real Property 4,163,800 Machinery and equipment 6,000 Furniture and fixtures 8,914 Office equipment 59,500 Leasehold improvements - Vehicles 45,460 -------------- Total Property and Equipment 4,283,674 -------------- Total Assets $12,494,355 ============== 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 $5,387,948 Real property lease arrearage - Personal property lease arrearage - Accrued professional fees - Current portion of long-term debt - Pass-through collections 4,630 Additional Accrued Vacations 5,574 -------------- Total Current Liabilities 5,398,152 -------------- Long-Term Postpetition Debt, Net - -------------- Total Postpetition Liabilities 5,398,152 -------------- Prepetition Secured claims - Priority unsecured claims 160,888 General unsecured claims 1,655,316 -------------- Total Prepetition Liabilities 1,816,204 -------------- Total Liabilities 7,214,356 -------------- Equity (deficit): Retained earnings/deficit at filing 5,855,424 Capital stock - Additional paid-in capital - Cumulative profit/loss since filing (4,145,483) Post-petition contributions/distributions or draws - Market value adjustment 3,570,058 -------------- Total equity (deficit) 5,279,999 -------------- Total liabilities & equity (deficit) $12,494,355 ============== Diocese of Davenport in Iowa Statement of Operations For the month ended September 30, 2007 Revenues Gross sales $76 Less: sales returns & allowances - Net sales 76 Less: cost of goods sold - Gross profit 76 Interest 2,675 Other income: Charitable gifts 5,048 Insurance receipts 94,701 Investment income/fees 111,842 -------------- Total revenues 214,342 -------------- Expenses: Compensation to owner(s)/officer(s) 12,209 Salaries 106,847 Commissions - Contract labor 8,315 Rent/Lease: Personal property - Real property - Insurance 259,359 Management fees - Depreciation 5,255 Taxes: Employer payroll taxes 6,704 Real property taxes - Other taxes - Other selling - Other administrative 109,683 Interest - Other expenses: Employee benefits 31,948 Charity collection 1,677 Medical assistance/Victim assistance 5,112 Utilities 6,319 Transfer to unrestricted - Professional fees 619 Sabbatical - Cemetery perpetual care - Youth trip expenses 104,655 -------------- Total expenses 658,702 -------------- Reorganization items: Professional fees - Estimate of claims payments - Interest earned on accumulated cash from resulting Chapter 11 case 21,839 Gain or (Loss) from sale of equipment - U.S. Trustee quarterly fees - Advertising/printing/mailing - -------------- Total reorganization items 21,839 -------------- Net profit (loss) before federal & state taxes (422,521) Federal & state income taxes - -------------- Net profit (loss) ($422,521) ============== Diocese of Davenport in Iowa Statement of Cash Receipts and Disbursements For the month ended September 30, 2007 Cash receipts Rent/Leases collected $3,625 Cash received from sales 76 Interest received 24,514 Borrowings increase in accounts payable - Funds from shareholders, partners, or other insiders (Sale of property) - Capital contributions - Annual diocesan appeal/donations 5,048 Investment income/misc. - Insurance receipts 94,701 Tribunal/Immigration/Faith Formation fees 108,217 Decrease in prepaids/accounts receivable 97,178 Misc./Increase in accounts payable 17,285 -------------- Total Cash Receipts 350,644 Cash disbursements: Payments for inventory - Selling - Administrative 222,054 Capital expenditures 2,895 Principal payments on debt - Interest paid - Rent/Lease: Personal Property - Real Property - Amount paid to owner(s)/officer(s) Salaries 12,209 Draws - Commissions/Royalties - Expense Reimbursements - Other - Salaries/Commissions (less employee withholding 83,051 Management fees - Taxes Employee withholding 23,796 Employer payroll taxes 6,704 Real property taxes - Other taxes - Other cash outflows: Insurance 259,359 Utilities 6,319 Medical Assistance 5,112 Employee benefits 31,948 Misc - -------------- Total Cash Disbursements 653,447 -------------- Net increase (decrease) in cash (302,803) Cash balance, beginning of period 1,937,544 Cash balance, end of period $1,634,741 ============== 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 expires on Nov. 16, 2007. (Catholic Church Bankruptcy News, Issue No. 106; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). COLLINS & AIKMAN: Posts $27.8MM Net Loss in Month Ended Oct. 11 --------------------------------------------------------------- Collins & Aikman Corporation Balance Sheet As of October 11, 2007 ASSETS Cash $237,216,450 Accounts receivable-trade, net 85,520,881 Other non-trade receivables 5,788,766 Inventories, net 14,874,854 Tooling and molding, net-current 23,214,626 Prepaids & other current assets 16,381,002 Deferred tax assets-current 0 --------------- TOTAL CURRENT ASSETS 382,996,580 Investments in subsidiaries 2,525,827,321 Fixed assets, net 128,988,068 Goodwill, net 59,622,121 Deferred tax assets-long term 0 Tooling and molding, net-long term 1,592,081 Other noncurrent assets 23,282,915 Intercompany accounts - net 32,376,905 Prepetition intercompany - net 614,887,010 --------------- TOTAL ASSETS $3,769,573,001 =============== LIABILITIES & EQUITY Notes payable $0 Short term borrowings 0 Advance on receivables 0 Current portion-long term debt 111,060,000 Current portion-capital leases 0 Accounts payable 33,066,542 Accrued interest payable 110,546,668 Accrued & other liabilities 5,410,126 Income taxes payable 4,407,338 --------------- Total current liabilities 264,490,675 Liabilities subject to compromise 2,334,889,123 Deferred income taxes 30,472,400 --------------- Total liabilities 2,629,852,198 Total equity 1,139,720,803 --------------- TOTAL LIABILITIES & EQUITY $3,769,573,001 =============== Collins & Aikman Corporation Income Statement Month Ended October 11, 2007 Net outside sales $66,166,439 I/C Net sales (5,828,968) --------------- Total sales 60,337,471 Cost of Sales 65,238,032 --------------- Gross profit (4,900,560) Selling, general & administrative expenses 11,161,472 --------------- Operating income (16,062,032) Interest expenses, net 9,463,010 Intercompany interest, net (4,342,837) Preferred stock accretion 0 Miscellaneous (income)/expense 0 Corporate allocation adjustment 0 Commission income (263,018) Commission expense 0 Royalty income (502,052) Royalty expense 0 Joint Venture (Income)/Expense 0 Minority interest in cons net income 0 Dividend income 0 Discount/Income for Carcorp. 0 Gain/(Loss) early extinguishments of debt 0 Discount/Premium on hedges 0 (Gain)/Loss on hedges 0 (Gain)/Loss on swaps 0 NAAIS Intercompany sales profit 0 Loss on sale of receivables 0 Restructuring provision 0 Asset Impairment 5,652,570 Foreign transactions - (Gain)/Loss 1,727,366 Amort of discount on NPV of liabilities 0 (Gain)/Loss on sale-leaseback transaction 0 --------------- Income from continuing operations before taxes (27,797,071) Federal income tax 0 State income tax 0 Foreign income tax 35,069 --------------- Income from continuing operations (27,832,140) Discontinued operations 0 Gain/Loss on sale of divisions 0 Extraordinary items 0 Integration 0 --------------- NET INCOME (LOSS) ($27,832,140) =============== Headquartered in Troy, Mich., Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtors with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and $2,856,600,000 in total debts. On Aug. 30, 2006, the Debtors filed a Joint Chapter 11 Plan and a Disclosure Statement explaining that plan. On Dec. 22, 2006, they filed an Amended Plan and on Jan. 22, 2007, filed a modified Amended Plan. On Jan. 25, 2007, the Court approved the adequacy of the Disclosure Statement. On July 18, 2007, the Court confirmed the Debtors' Liquidation Plan which became effective on Oct. 12, 2007. The Debtors' cases are set to be closed on Feb. 28, 2008. (Collins & Aikman Bankruptcy News, Issue No. 78; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/ or 215/945-7000) HANCOCK FABRICS: Files Operating Report for Month Ended October 6 ----------------------------------------------------------------- Hancock Fabrics, Inc. and Subsidiaries Consolidated Balance Sheet As of October 6, 2007 ASSETS Current assets: Cash and cash equivalents $4,225,000 Receivables, less allowance for doubtful accounts 5,834,000 Inventories 86,573,000 Income Taxes Refundable 5,246,000 Prepaid Expenses 1,821,000 ------------ Total current assets 103,699,000 Property and equipment 43,348,000 Other assets 14,993,000 ------------ Total Assets $162,040,000 ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities not subject to compromise Accounts payable $19,393,000 Credit facility; DIP financing 17,500,000 Accrued liabilities 9,720,000 Deferred tax liabilities 7,152,000 Liabilities subject to compromise Accounts payable 27,716,000 Accrued liabilities 14,102,000 Long-term lease financing obligations 1,679,000 Capital lease obligations 1,710,000 Postretirement benefits other than pensions 9,542,000 Pension and SERP liabilities 8,881,000 Other liabilities 9,082,000 ------------ Total Liabilities 126,477,000 Total Shareholders' Equity 35,563,000 ------------ Total liabilities and shareholders' equity $162,040,000 ============ Hancock Fabrics, Inc., and Subsidiaries Consolidated Statement of Operations For the Month Ended October 6, 2007 Sales $26,043,000 Cost of goods sale 14,040,000 ----------- Gross profit 12,003,000 Selling, general & admin expense 11,848,000 Depreciation and amortization 294,000 ----------- Operating income (loss) (139,000) Reorganization expenses 1,298,000 Interest expense, net 349,000 ----------- Earnings (loss) before income taxes (1,786,000) Income taxes 0 ----------- Net earnings (loss) ($1,786,000) ============ Hancock Fabrics, Inc., and Subsidiaries Consolidated Statement of Cash Flow For the Month Ended October 6, 2007 Cash flows from operating activities: Net earnings ($1,786,000) Adjustments to reconcile net earnings to cash flows used in operating activities Depreciation and amortization 513,000 Amortization of deferred loan costs 104,000 LIFO charge (credit) (781,000) Reserve for store closing credits (50,000) Reserve for obsolete inventory 0 Reserve for sales returns and bad debts 0 Stepped rent accrual (31,000) Loss on disposition of property and equipment 0 Gain on disposition of lease financing obligations 0 Stock compensation expense 42,000 (Increase) decrease in assets Receivables and prepaid expenses 46,000 Inventory at current cost (4,327,000) Income tax refundable 1,870,000 Other non-current assets 20,000 Increase (decrease) in liabilities Accounts payable 2,825,000 Accrued liabilities 1,300,000 Postretirement benefits other than pensions (42,000) Long-term pension and SERP liabilities 156,000 Reserve for store closings (115,000) Other liabilities (28,000) ----------- Net cash used in operating activities (184,000) Cash flows from investing activities: Additions to property and equipment (410,000) Proceeds from the disposition of property and equipment 4,000 ----------- Net cash used in investing activities (406,000) Cash flows from financing activities: Net borrowings on revolving credit agreement 0 Payments for lease financing (1,000) Payments for capital leases (3,000) Payments for loan costs (30,000) Purchase of treasury stock 0 Tax obligation settled with treasury stock 0 ----------- Net cash used in financing activities (34,000) ----------- Decrease in cash and cash equivalents (624,000) Cash, beginning of period 4,849,000 ----------- Cash, end of period $4,225,000 ============ Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc. (OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty retailer of a wide selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. Hancock Fabrics is one of the largest fabric retailers in the United States, currently operating approximately 400 retail stores in approximately 40 states. The company employs approximately 7,500 people on a full-time and part-time basis. Most of the company's employees work in its retail stores, or in field management to support its retail stores. The company and six of its debtor-affiliates filed for chapter 11 protection on March 21, 2007 (Bankr. D. Del. Lead Case No. 07-10353). Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, represent the Debtors. As of Sept. 1, 2007, Hancock Fabrics disclosed total assets of $159,673,000 and total liabilities of 122,316,000. The Court extended the Debtors' exclusive period to file a Chapter 11 Plan to Feb. 28, 2008. (Hancock Fabric Bankruptcy News, Issue No. 19, Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). HOMEBANC CORP: Files Monthly Operating Report for September 2007 ---------------------------------------------------------------- HomeBanc Mortgage Corporation and its debtor-affiliates filed with the United States Bankruptcy Court for the District of Delaware a consolidated monthly operating report for the month ended September 30, 2007. The Debtors reported roughly $4,569,679,000 in total assets, including about $12,035,000 in cash; $10,449,000 in restricted cash; and $15,650,000 in property and equipment. The Debtors have about $14,736,000 in accrued interest receivables. The Debtors reported a total of $4,459,987,000 in liabilities, including around $24,309,000 in loan funding payable; ($18,562,000) in other accounts payable; and $589,000 in accounts payable to affiliates. During the period, the Debtors earned about $1,623,000 in net interest income after provision for loan losses on total revenues of roughly $2,842,000. In the aggregate, the Debtors recorded a net loss of $27,931,000 during month. The Debtors reported cash and cash equivalents of $20,255,000 at the beginning of the period, and $12,035,000 at the end of the period. A full-text copy of the Debtors' September 2007 operating report is available at no charge at http://researcharchives.com/t/s?24ba Headquartered in Atlanta, Ga., HomeBanc Mortgage Corporation -- http://www.homebanc.com/-- is a mortgage banking company focused on originating primarily prime purchase money residential mortgage loans in the Southeast United States. HomeBanc Mortgage together with five affiliates filed for chapter 11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079 through 07-11084). Joel A. Waite, Esq., at Young, Conaway, Stargatt & Taylor was selected by the Debtors to represent them in these cases. The Debtors' financial condition as of June 30, 2007, showed total assets of $5,100,000,000 and total liabilities of $4,900,000,000. The Debtors' exclusive period to file a plan ends on Dec. 7, 2007. (HomeBanc Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000). HOMEBANC CORP: Files Amended Schedules of Assets and Liabilities ---------------------------------------------------------------- Pursuant to Rule 1009(a) of the Federal Rules of Bankruptcy Procedure and Rule 1009-2 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware, HomeBanc Corp. amended the Schedule F, list of creditors holding unsecured claims, in its Schedules of Assets and Liabilities: Wells Fargo Bank, National $51,547,000 Association, as property trustee for HMB Capital Trust I Wilmington Trust Company, as 82,475,000 trustee for HMB Capital Trust IV Wilmington Trust Company, as 41,238,000 trustee for HMB Capital Trust IV ------------ $175,250,000 ============ HomeBanc Corp.'s original schedules disclosed: A. Real Property $0 B. Personal Property B.1 Cash on hand 0 B.2 Bank Accounts 1,956,408 B.3 Security Deposit 0 B.4 Household goods 0 B.5 Book, artwork and collectibles 0 B.6 Wearing apparel 0 B.7 Furs and jewelry 0 B.8 Firearms and other equipment 0 B.9 Insurance Policies unknown B.10 Annuities 0 B.11 Interests in an education IRA 0 B.12 Interests in pension plans 0 B.13 Stock and Interests ABETTERWAYHOME Corp. 10 Abetterwayhome Finance LLC II 250,000 Abetterwayhome Finance LLC 250,000 HMB Acceptance Corp. 100 HomeBanc Funding Corp. 100 HomeBanc Funding Corp. II 100 HomeBanc Mortgage Corporation 10 HomeBanc Mortgage Trust 2005-4 unknown HomeBanc Mortgage Trust 2005-5 unknown HomeBanc Mortgage Trust 2006-2 unknown HMB Capital Trust V unknown HMB Capital Trust IV unknown HMB Capital Trust I unknown B.14 Interests in partnerships & joint venture 0 B.15 Government and corporate bonds unknown B.16 Accounts Receivable HomeBanc Funding Corp. 87,237,473 HomeBanc Funding Corp. II 109,194,791 HomeBanc Mortgage Trust 2005-3 18,448,127 HomeBanc Mortgage Trust 2005-4 52,752,579 HomeBanc Mortgage Trust 2005-5 39,196,433 B.17 Alimony 0 B.18 Other Liquidated Debts Owing Debtor 0 B.19 Equitable or future interests 0 B.20 Interests in estate death benefit plan 0 B.21 Other Contingent and Unliquidated Claims 0 B.22 Patents 0 B.23 Licenses, franchises & other intangibles unknown B.24 Customer lists or other compilations 0 B.25 Vehicles 0 B.26 Boats, motors and accessories 0 B.27 Aircraft and accessories 0 B.28 Office Equipment 0 B.29 Equipment and Supplies for Business 19,944 B.30 Inventory 0 B.31 Animals 0 B.32 Crops 0 B.33 Farming equipment and implements 0 B.34 Farm supplies, chemicals and feed 0 B.35 Other Personal Property 0 TOTAL SCHEDULED ASSETS $309,306,074 ========================================================== C. Property Claimed as Exempt $0 D. Creditors Holding Secured Claims 0 E. Creditors Holding Unsecured Priority Claims 2,306,794 F. Creditors Holding Unsecured Non-priority Claims HMB Acceptance Corp. 31,584,001 HomeBanc Capital Trust I 248,972 HomeBanc Capital Trust IV 112,265 HomeBanc Capital Trust V 54,610 HomeBanc Mortgage Corporation 128,350,497 HomeBanc Mortgage Trust 2004-1 139,813,430 HomeBanc Mortgage Trust 2004-2 8,098,712 HomeBanc Mortgage Trust 2005-1 1,239,451 HomeBanc Mortgage Trust 2005-2 2,363,367 HomeBanc Mortgage Trust 2006-2 91,583 Others unknown TOTAL SCHEDULED LIABILITIES $314,263,682 =========================================================== Headquartered in Atlanta, Ga., HomeBanc Mortgage Corporation -- http://www.homebanc.com/-- is a mortgage banking company focused on originating primarily prime purchase money residential mortgage loans in the Southeast United States. HomeBanc Mortgage together with five affiliates filed for chapter 11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079 through 07-11084). Joel A. Waite, Esq., at Young, Conaway, Stargatt & Taylor was selected by the Debtors to represent them in these cases. The Debtors' financial condition as of June 30, 2007, showed total assets of $5,100,000,000 and total liabilities of $4,900,000,000. The Debtors' exclusive period to file a plan ends on Dec. 7, 2007. (HomeBanc Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000). HOMEBANC CORP: HomeBanc Mortgage Files Amended Schedules -------------------------------------------------------- Pursuant to Rule 1009(a) of the Federal Rules of Bankruptcy Procedure and Rule 1009-2 of the Local Rules of Bankruptcy Practice and Procedure of the United States Bankruptcy Court for the District of Delaware, HomeBanc Mortgage Corporation amended Schedules A, B-35, F and G of its Schedules of Assets and Liabilities. The amended Schedule A includes these real properties that HBMC owns through foreclosure: Current Market Value Without Deducting Address Secured Claim/Exemption ------- ----------------------- 1735 Fielding Way, Hampton, Georgia $117,902 2061 Millstone Drive SW, Conyers, Georgia 223,094 207 Lexington Village, Peachtree City, Georgia 197,910 4395 Windson Court SW, Lilburn, Georgia 232,800 6125 Yeats Manor Drive, Tampa, Florida 510,100 619 Glenridge Court, Conyers, Georgia 103,500 7227 Thoreau Circle, Atlanta, Georgia 268,160 1518 Bramlett Hill Drive, Lawrenceville, Georgia 230,100 ---------- $1,883,566 ========== HBMC's Schedule B-35, which includes personal property, other than the kinds listed, aggregate $34,029,337. The amount consists of: Deferred Compensation $5,840,992 Insurance Captives unknown Leasehold Improvements 5,859,572 Loans Receivable 1,482,628 Mortgage Servicing Rights unknown WIP - Homebanc Way II Internally 20,846,146 Developed Software HBMC amended its Schedule F, the list of creditors holding unsecured nonpriority claims, listing Alston & Bird LLP, with claim amount of $0. HBMC includes these entities as parties to lease or contract in its Schedule G of executory contacts and unexpired leases: Entity Lease or Contract ------ ----------------- General Electric Mortgage Reinsurance Agreement dated Insurance Corporation February 1, 2003 Group Mortgage Reinsurance Amendment No. 1 dated October 1, Company 2004, to Reinsurance Agreement dated January 30, 2004 J&H Marsh & McLennan Amendment No. 1 dated October 1, 2004, to Reinsurance Agreement dated January 30, 2004 LeBoeuf, Lamb, Greene & MacRae, Participation Agreement dated LLP September 30, 2003 Republic Mortgage Insurance Amendment No. 1 dated October 1, Company 2004, to Reinsurance Agreement dated January 30, 2004 Sponsored Captive RE, Inc. Reinsurance Agreement dated February 1, 2003 Sponsored Captive RE, Inc. Participation Agreement dated September 30, 2003 Vermont Insurance Management, Participation Agreement dated Inc. September 30, 2003 Original Schedules HomeBanc Mortgage Corporation's original schedules of assets and liabilities disclosed: A. Real Property $0 B. Personal Property B.1 Cash on hand 0 B.2 Bank Accounts 9,271,809 B.3 Security Deposit 279,128 B.4 Household goods 0 B.5 Book, artwork and collectibles 0 B.6 Wearing apparel 0 B.7 Furs and jewelry 0 B.8 Firearms and other equipment 0 B.9 Insurance Policies unknown B.10 Annuities 0 B.11 Interests in an education IRA 0 B.12 Interests in pension plans 0 B.13 Stock and Interests HMB Mortgage Partners LLC unknown HMB Title Partners, LLC unknown B.14 Interests in partnerships & joint venture unknown B.15 Government and corporate bonds unknown B.16 Accounts Receivable Accrued interest due from various borrowers to HBMC 1,980,456 Sale adjustments 7,591 HomeBanc Foundation salary accrual 13,804 Receivables related to modification on lot loans 9,537 Corporate advances due from borrowers 567,080 Escrow advances due from borrowers 4,253,294 Principal and interest advances due from investors 114,294 Loan closing fees due from attorneys 203,527 Funds due from serv. custodial for escrow 1,067,898 Funds due from serv. custodial for buydown 12,803 Intercompany accounts receivable 1,162,921,892 B.17 Alimony 0 B.18 Other Liquidated Debts Owing Debtor 0 B.19 Equitable or future interests 0 B.20 Interests in estate death benefit plan 0 B.21 Other Contingent and Unliquidated Claims Chase Home Finance, LLC Holdbacks, Chase Home Finance LLC 135,940 CitiMortgage Inc Holdbacks, CitiMortgage Inc 99,982 Countrywide Indemnification Deposit, Countrywide Home Loans 611,202 B.22 Patents unknown B.23 Licenses, franchises & other intangibles n/a B.24 Customer lists or other compilations 0 B.25 Vehicles 0 B.26 Boats, motors and accessories 0 B.27 Aircraft and accessories 0 B.28 Office Equipment 16,184,777 B.29 Equipment and Supplies for Business 389,056 B.30 Inventory 0 B.31 Animals 0 B.32 Crops 0 B.33 Farming equipment and implements 0 B.34 Farm supplies, chemicals and feed 0 B.35 Other Personal Property Leasehold improvements 5,859,572 Loans receivable 1,482,628 Mortgage servicing rights unknown Real estate owned 1,883,566 WIP - HomeBanc Way II software 20,846,146 Deferred compensation 5,840,992 TOTAL SCHEDULED ASSETS $1,234,036,972 ========================================================== C. Property Claimed as Exempt 0 D. Creditors Holding Secured Claims $636,646,629 E. Creditors Holding Unsecured Priority Claims 4,693,579 F. Creditors Holding Unsecured Non-priority Claims ACS Commercial Solutions 88,278 Alston & Bird LLP 100,000 American Fiber Systems 12,486 Arena Sports Marketing LLC 140,000 AT&T 126,717 Broadridge 27,662 Broker Price Opinion.Com, Inc. 20,749 BrokerPriceOpinioncom Inc. 10,000 CDW Direct 18,189 HBTP 4,245,719 HomeBanc Capital Trust IV 111,732 HomeBanc Funding Corp. 651,458,703 HomeBanc Funding Corp. II 386,509,083 Others 21,095,424 TOTAL SCHEDULED LIABILITIES $1,705,304,950 ========================================================= Headquartered in Atlanta, Ga., HomeBanc Mortgage Corporation -- http://www.homebanc.com/-- is a mortgage banking company focused on originating primarily prime purchase money residential mortgage loans in the Southeast United States. HomeBanc Mortgage together with five affiliates filed for chapter 11 protection on Aug. 9, 2007 (Bankr. D. Del. Case Nos. 07-11079 through 07-11084). Joel A. Waite, Esq., at Young, Conaway, Stargatt & Taylor was selected by the Debtors to represent them in these cases. The Debtors' financial condition as of June 30, 2007, showed total assets of $5,100,000,000 and total liabilities of $4,900,000,000. The Debtors' exclusive period to file a plan ends on Dec. 7, 2007. (HomeBanc Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000). MUSICLAND HOLDING: Posts $159,000 Net Loss in August 2007 --------------------------------------------------------- Musicland Holding Corp. Consolidated Balance Sheet As of August 31, 2007 ASSETS Current Assets Cash $12,616,000 Letters of Credit/Other Deposits 415,000 Other Amounts due from TransWorld 0 Receivables from Sub-leases 774,000 Amounts due from GOB sales 0 Miscellaneous CC 29,000 Vendors Credit due from services 1,541,000 ---------- Total 15,375,000 ========== Fixed Assets 0 Other assets Transport Logistic deposit 0 Insurance Deposits 3,977,000 Utility and Tax Deposits 0 ---------- TOTAL ASSETS $19,352,000 ========== Liabilities & Shareholders' deficit Current liabilities Accounts payable Due to Transworld 0 Due to Deluxe 0 Expense accruals 2,840,000 Other accrued liabilities Insurance Reserve 3,380,000 5% Admin. Fee on Wachovia L/C 250,000 Miscellaneous 29,000 ---------- Total 6,499,000 ---------- DIP financing 0 Other LT Liabilities 0 Liabilities subject to compromise 315,047,000 Shareholders' deficit (302,194,000) ------------ TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $19,352,000 ============ Musicland Holding Corp. Statement of Operations For the Month Ended August 31, 2007 Merchandise revenue 0 Non-merchandise revenue 0 ----------- Net sales 0 Cost of good sold 0 ----------- Gross Profit 0 Store operating expenses Payroll 0 Occupancy 0 Other ($2,000) Store expenses 0 ---------- General & administrative (2,000) ---------- EBITDA (Loss) (2,000) Chapter 11 & related charges (132,000) Sale to Transworld 0 Hilco 65 0 Media Play Wind down 0 Depreciation & Amortization 0 ---------- Operating income (Loss) (134,000) Interest income (expense) 49,000 Other non-operating charges (74,000) ---------- Earnings before Taxes (159,000) ---------- Income tax 0 ---------- Net earnings (Loss) ($159,000) ========== Musicland Holding Corp. Statement of Cash Flow For the Month Ended August 31, 2007 Operating activities Net earnings (Loss) ($159,000) Cash 16,897,000 Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: 0 Loss on utility deposits write off Other Current Assets 250,000 Changes in operating assets & liabilities: 0 Inventory 0 Other current assets 0 Other Non-current Assets 0 Accounts payable 0 Other accrued liabilities 0 0 Liabilities subject to compromise 0 ---------- Net cash provided by (used in) operating activities 91,000 ---------- Investing activities Change in other long term asset/liabilities 0 Retirement of fixed assets 0 Net cash 0 Financing activities Distribution to Secured Creditors 0 ---------- Increase/decrease in cash 91,000 ---------- Cash at the beginning of Period 12,525,000 ---------- Cash at the end of Period $12,616,000 ========== Headquartered in New York, New York, Musicland Holding Corp., is a specialty retailer of music, movies and entertainment-related products. The Debtor and 14 of its affiliates filed for chapter 11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in their restructuring efforts. Mark T. Power, Esq., at Hahn & Hessen LLP, represents the Official Committee of Unsecured Creditors. At March 31, 2007, the Debtors disclosed $20,121,000 in total assets and $321,546,000 in total liabilities. On May 12, 2006, the Debtors filed their Joint Plan of Liquidation with the Court. On Sept. 14, 2006, they filed an amended Plan and a Second Amended Plan on Oct. 13, 2006. The Court approved the adequacy of the Amended Disclosure Statement on Oct. 13, 2006. (Musicland Bankruptcy News, Issue No. 40; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) MUSICLAND HOLDING: Posts $540,000 Net Loss in September 2007 ------------------------------------------------------------ Musicland Holding Corp. Consolidated Balance Sheet As of September 30, 2007 ASSETS Current Assets Cash $12,108,000 Letters of Credit/Other Deposits 415,000 Other Amounts due from TransWorld 0 Receivables from Sub-leases 774,000 Amounts due from GOB sales 0 Miscellaneous CC 29,000 Vendors Credit due from services 1,541,000 ---------- Total 14,867,000 ========== Fixed Assets 0 Other assets Transport Logistic deposit 0 Insurance Deposits 3,977,000 Utility and Tax Deposits 0 ---------- TOTAL ASSETS $18,844,000 ========== Liabilities & Shareholders' deficit Current liabilities Accounts payable Due to Transworld 0 Due to Deluxe 0 Expense accruals 2,840,000 Other accrued liabilities Insurance Reserve 3,380,000 5% Admin. Fee on Wachovia L/C 250,000 Miscellaneous 29,000 ---------- Total 6,499,000 ---------- DIP financing 0 Other LT Liabilities 0 Liabilities subject to compromise 315,047,000 Shareholders' deficit (302,702,000) ---------- TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $18,844,000 ========== Musicland Holding Corp. Statement of Operations For the Month Ended September 30, 2007 Merchandise revenue 0 Non-merchandise revenue 0 ----------- Net sales 0 Cost of good sold 0 ----------- Gross Profit 0 Store operating expenses Payroll 0 Occupancy 0 Other ($1,000) Store expenses 0 ---------- General & administrative (1,000) ---------- EBITDA (Loss) (1,000) Chapter 11 & related charges (360,000) Sale to Transworld 0 Hilco 65 0 Media Play Wind down 0 Depreciation & Amortization 0 ---------- Operating income (Loss) (361,000) Interest income (expense) 46,000 Other non-operating charges (225,000) ---------- Earnings before Taxes (540,000) ---------- Income tax 0 ---------- Net earnings (Loss) ($540,000) ========== Musicland Holding Corp. Statement of Cash Flow For the Month Ended September 30, 2007 Operating activities Net earnings (Loss) ($540,000) Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: 32,000 Loss on utility deposits write off Changes in operating assets & liabilities: 0 Inventory 0 Other current assets 0 Other Non-current Assets 0 Accounts payable 0 Other accrued liabilities 0 Liabilities subject to compromise 0 ---------- Net cash provided by (used in) operating activities (508,000) ---------- Investing activities Change in other long term asset/liabilities 0 Retirement of fixed assets 0 Net cash provided by investing activities 0 Financing activities Distribution to Secured Creditors 0 ---------- Increase/decrease in cash (508,000) ---------- Cash at the beginning of Period 12,606,000 ---------- Cash at the end of Period $12,108,000 ========== Headquartered in New York, New York, Musicland Holding Corp., is a specialty retailer of music, movies and entertainment-related products. The Debtor and 14 of its affiliates filed for chapter 11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No. 06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis, represents the Debtors in their restructuring efforts. Mark T. Power, Esq., at Hahn & Hessen LLP, represents the Official Committee of Unsecured Creditors. At March 31, 2007, the Debtors disclosed $20,121,000 in total assets and $321,546,000 in total liabilities. On May 12, 2006, the Debtors filed their Joint Plan of Liquidation with the Court. On Sept. 14, 2006, they filed an amended Plan and a Second Amended Plan on Oct. 13, 2006. The Court approved the adequacy of the Amended Disclosure Statement on Oct. 13, 2006. (Musicland Bankruptcy News, Issue No. 40; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) REMY WORLDWIDE: Remy Int'l Files Jan. '08 Initial Operating Report ------------------------------------------------------------------ Remy International delivered to the the U.S. Bankruptcy Court for the District of Delaware an initial monthly operating report, containing a 13-week cash flow forecast for the week ending January 11, 2008. Remy International Domestic - Consolidated 13-Week Cash Flow Forecast Ending January 11, 2008 13-Week Total ------------- Beginning Cash & Available Balance $81,080,000 Receipts Customer Receipts Remy, Inc. 127,209,000 Electrical Aftermarket 62,246,000 Knopf 16,000,000 Locomotive 6,974,000 ------------ Total Customer Receipts 212,428,000 Affiliate Receipts 3,235,000 Other Receipts 1,164,000 Asset Sales 4,279,000 ------------ Total Receipts $221,106,000 ------------ Disbursements Affiliate Trade Disbursements 53,615,000 Affiliate Financing Disbursements - Payroll & Payroll Taxes 22,199,000 Healthcare & Other Benefits 2,985,000 Pension & Post Retirement Plans 627,000 Material, Component & Core Purchase 119,224,000 Freight 12,307,000 Contract & Ordinary Course Pros. 5,775,000 Insurance 704,000 Travel & Reimbursable Expenses 1,443,000 Utilities 748,000 Property Leases 1,279,000 Equipment Leases 175,000 Repairs & Maintenance 196,000 Customs & Duties 1,279,000 Property & Other Misc. Taxes 218,000 Other 4,319,000 Cap Ex 2,529,000 Restructuring & Pro. Fees 27,390,000 Interest 19,409,000 ------------ Total Disbursements $276,422,000 Net Cash Flows & Financing: Net Cash Flows (55,316,000) DIP/EXIT Term Loan A 52,000,000 EXIT Term Loan B 49,500,000 PAYDOWN -- Floating Rate Notes (125,000,000) Stock Rights Offering 85,000,000 3rd Lien Notes (Conversion) 100,000,000 PAYDOWN -- 8-5/8% Notes (155,000,000) Borrowing Base Changes 1,801,000 ------------ Ending Cash & Availability Balance $34,065,000 ============ A full-text copy of Remy's Initial Operating Report and a breakdown of the weekly cash flow forecast is available for free at http://researcharchives.com/t/s?24b9 Based in Anderson, Indiana, Remy Worldwide Holdings Inc. acts as a holding company of all the outstanding capital stock of Remy International Inc. Remy International --http://www.remyinc.com/ -- manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. Remy has operations in the United Kingdom, Mexico and Korea, among others. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 8, 2007 (Bankr. D. Del. Cases No. 07-11481 to 07-11509). Douglas P. Bartner, Esq., Fredric Sosnick, Esq., and Michael H. Torkin, Esq., at Shearman & Sterling LLP, represent the Debtors' in their restructuring efforts. Pauline K. Morgan, Esq., Edmon L. Morton, Esq., and Kenneth J. Enos, Esq., at Young Conaway Stargatt & Taylor, LLP, serve as co-counsels to the Debtors. The Debtors' claims agent is Kurtzman Carson Consultants LLC and their restructuring advisor is AlixPartners, LLC. At Sept. 30, 2006, Remy Worldwide's balance sheet showed total assets of $919,736,000 and total liabilities of $1,265,648,000. The Debtors' exclusive period to file a plan expires on Feb. 5, 2008. (Remy Bankruptcy News; Issue No. 5, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Posts $131MM Net Loss in Month Ended Sept. 30, 2007 ---------------------------------------------------------------- Solutia Chapter 11 Debtors Unaudited Statement of Consolidated Financial Position As of September 30, 2007 ASSETS Cash $53,000,000 Trade Receivables, net 183,000,000 Account Receivables-Unconsolidated Subsidiaries 82,000,000 Inventories 180,000,000 Other Current Assets 79,000,000 Assets of Discontinued Operations 7,000,000 -------------- Total Current Assets 584,000,000 Property, Plant and Equipment, net 649,000,000 Investments in Subsidiaries and Affiliates 687,000,000 Intangible Assets, net 100,000,000 Other Assets 57,000,000 -------------- Total Assets 2,077,000,000 ============== LIABILITIES AND SHAREHOLDERS' DEFICIT Accounts Payable 237,000,000 Short Term Debt 922,000,000 Other Current Liabilities 163,000,000 Liabilities of Discontinued Operations 5,000,000 -------------- Total Current Liabilities 1,327,000,000 Long-Term Debt 19,000,000 Other Long-Term Liabilities 175,000,000 -------------- Total Liabilities not Subject to Compromise 1,521,000,000 Liabilities Subject to Compromise 1,962,000,000 Shareholders' Deficit (1,406,000,000) -------------- Total Liabilities & Shareholders' Deficit $2,077,000,000 ============== Solutia Chapter 11 Debtors Unaudited Consolidated Statement of Operations For the Month Ended September 30, 2007 Total Net Sales $222,000,000 Total Cost Of Goods Sold 186,000,000 -------------- Gross Profit 36,000,000 Total MAT Expense 19,000,000 -------------- Operating Income (Loss) 17,000,000 Equity Earnings from Affiliates 0 Interest Expense, net (9,000,000) Other Income, net 7,000,000 Reorganization Items: Professional fees (6,000,000) Employee severance and retention costs 0 Adjustment to allowed claim amounts (139,000,000) Settlements of prepetition claims 0 -------------- (145,000,000) -------------- Loss from continuing operations before taxes (130,000,000) Income tax expense (benefit) 1,000,000 Loss from continuing operations 0 -------------- Net Loss ($131,000,000) ============== 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 Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. 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. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. A hearing to consider confirmation of the Debtors' Reorganization Plan is scheduled for Nov. 29, 2007. (Solutia Bankruptcy News, Issue No. 105; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). VESTA INSURANCE: Gordon Gaines Files Sept. 2007 Operating Report ---------------------------------------------------------------- J. Gordon Gaines, Inc. Income Statement Month Ended September 30, 2007 Revenue from Total Sales $0 Less: Cost of Sales 0 ------------ Gross Profit 0 Less: Operating Expenses 10,179 ------------ Net Profit Operations (10,179) Non-Operating Income (Expenses) Interest Earned 1,201 State Tax Refunds 0 Non-operational income Sale of Property 0 Stale Dated Checks Written Off 0 Miscellaneous Income 0 ------------ Net Profit (Loss) ($8,978) ============ J. Gordon Gaines, Inc. Schedule of Cash Receipts and Disbursements Month Ended September 30, 2007 Cash On Hand (Beginning) $585,057 Cash Receipts: Accounts Receivable 0 Management Fees 0 Loan Proceeds 0 Sale of Property 0 Interest Earned 1,201 State Tax Refunds 0 Non-operational Income 0 Funding by Texas Receiver 0 Funding under post confirmation 137,102 Intercompany insurance operations 0 Stale Dated Checks Written Off 0 Miscellaneous Income 0 ------------ Total Receipts 138,303 Cash Disbursements: Business Disbursements Form BA-02(B) 147,283 ------------ Surplus Or Deficit (8,980) ------------ Cash on Hand (End) $576,077 ============ Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc. (Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding company for a group of insurance companies that primarily offer property insurance in targeted states. Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership III, L.P., filed an involuntary chapter 7 petition against the company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517). The case was converted to a voluntary chapter 11 case on Aug. 8, 2006 (Bankr. N.D. Ala. Case No. 06-02517). Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor. R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, represents the petitioning creditors. In its schedules of assets and liabilities, Vesta listed $14,919,938 in total assets and $214,278,847 in total liabilities. J. Gordon Gaines Inc. is a Vesta Insurance-owned unit that manages the company's numerous insurance subsidiaries and employs the headquarters workers. The company filed for chapter 11 protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808). Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP, represent the Debtor in its restructuring efforts. In its schedules of assets and liabilities, Gaines listed $19,818,094 in total assets and $16,046,237 in total liabilities. On Aug. 1, 2006, the District Court of Travis County, Texas entered an order appointing the Texas Commissioner of Insurance as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries: Vesta Fire Insurance Corporation; The Shelby Insurance Company; Shelby Casualty Insurance Corporation; Texas Select Lloyds Insurance Company; and Select Insurance Services, Inc. On Oct. 11, 2006, both Vesta and Gaines filed separate Plans of Liquidation and Disclosure Statements. They filed an amended Plan on Nov. 7, 2006, and a Second Amended Plan on Nov. 10, 2006. The Court approved the Disclosure Statements of Vesta and Gaines on Nov. 10, 2006. On Dec. 22, 2006, the Court confirmed the Third Amended Plans of Vesta and Gaines. Florida Select Insurance Agency Inc., an affiliate, filed for chapter 11 protection on April 24, 2007 (Bankr. N.D. Ala. Case No. 07-01849). Rufus Dorsey, IV, Esq., at Parker Hudson Rainer & Dobbs LLP, represents Florida Select. FSIA's exclusive period to file a plan of reorganization expires on Dec. 20, 2007. (Vesta Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) VESTA INSURANCE: Florida Select Files Sept. 2007 Operating Report ----------------------------------------------------------------- Florida Select Insurance Agency Income Statement Month Ended September 30, 2007 Revenue from Total Sales $0 Less: Cost of Sales ------------ Gross Profit $0 Less: Operating Expenses 18,081 ------------ Net Profit Operations (18,081) Non-Operating Income (Expenses) Interest Earned 12,409 Vendor Refund 1,329 ------------ Net Profit (Loss) ($4,343) ============ Florida Select Insurance Agency Schedule of Cash Receipts and Disbursements Month Ended September 30, 2007 Cash On Hand (Beginning) $3,353,157 Cash Receipts: Management Fees 0 Loan Proceeds 0 Sale of Property 0 Interest Earned 12,409 Vendor Refund 0 Miscellaneous Income 1,329 Total Receipts 13,738 Cash Disbursements: Business Disbursements Form BA-02(B) 18,081 ----------- Surplus Or Deficit (4,343) ----------- Cash on Hand (End) $3,348,814 ============ Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc. (Other OTC: VTAI.PK) -- http://www.vesta.com/-- is a holding company for a group of insurance companies that primarily offer property insurance in targeted states. Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership III, L.P., filed an involuntary chapter 7 petition against the company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517). The case was converted to a voluntary chapter 11 case on Aug. 8, 2006 (Bankr. N.D. Ala. Case No. 06-02517). Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor. R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, represents the petitioning creditors. In its schedules of assets and liabilities, Vesta listed $14,919,938 in total assets and $214,278,847 in total liabilities. J. Gordon Gaines Inc. is a Vesta Insurance-owned unit that manages the company's numerous insurance subsidiaries and employs the headquarters workers. The company filed for chapter 11 protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808). Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP, represent the Debtor in its restructuring efforts. In its schedules of assets and liabilities, Gaines listed $19,818,094 in total assets and $16,046,237 in total liabilities. On Aug. 1, 2006, the District Court of Travis County, Texas entered an order appointing the Texas Commissioner of Insurance as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries: Vesta Fire Insurance Corporation; The Shelby Insurance Company; Shelby Casualty Insurance Corporation; Texas Select Lloyds Insurance Company; and Select Insurance Services, Inc. On Oct. 11, 2006, both Vesta and Gaines filed separate Plans of Liquidation and Disclosure Statements. They filed an amended Plan on Nov. 7, 2006, and a Second Amended Plan on Nov. 10, 2006. The Court approved the Disclosure Statements of Vesta and Gaines on Nov. 10, 2006. On Dec. 22, 2006, the Court confirmed the Third Amended Plans of Vesta and Gaines. Florida Select Insurance Agency Inc., an affiliate, filed for chapter 11 protection on April 24, 2007 (Bankr. N.D. Ala. Case No. 07-01849). Rufus Dorsey, IV, Esq., at Parker Hudson Rainer & Dobbs LLP, represents Florida Select. FSIA's exclusive period to file a plan of reorganization expires on Dec. 20, 2007. (Vesta Bankruptcy News, Issue No. 27; 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, Tara Marie A. Martin, Joseph Medel C. Martirez, Sheena R. Jusay, 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 ***