/raid1/www/Hosts/bankrupt/TCR_Public/081115.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 15, 2008, Vol. 12, No. 273
Headlines
BOSCOV'S INC: Posts $3.6 Million Net Loss in Month Ended Oct. 4
CATHOLIC CHURCH: Fairbank's Monthly Operating Report for September
FEDERAL-MOGUL: Posts $35 Million Net Loss in August
FEDERAL-MOGUL: Posts $47.2 Million Net Loss in September
FRONTIER AIRLINES: Files Monthly Operating Report for September
INTERSTATE BAKERIES: Posts $5.7MM Loss in 4 Weeks Ended Sept. 20
LANDSOURCE COMMUNITIES: Amends Balance Sheet for August 2008
LANDSOURCE COMMUNITIES: Amends Operating Report for June 2008
LANDSOURCE COMMUNITIES: Amends Operating Report for July 2008
LANDSOURCE COMMUNITIES: Posts $11.6 Million Net Loss in September
LEXINGTON PRECISION: Posts $877,000 Net Loss in September 2008
SEA CONTAINERS: Files Operating Report for September 2008
TROPICANA ENTERTAINMENT: Posts $16 Million Net Loss in September
WASHINGTON MUTUAL: Files Initial Monthly Operating Report
*********
BOSCOV'S INC: Posts $3.6 Million Net Loss in Month Ended Oct. 4
----------------------------------------------------
Boscov's, Inc., et al.
Consolidated Balance Sheet
As of October 4, 2008
ASSETS
Current Assets:
Cash and cash equivalents $7,467,060
Deposits for utilities 1,196,053
Trade accounts receivable 19,192,911
Due from affiliated companies 0
Merchandise inventory 231,416,000
Prepaid expenses & other current assets
Deferred taxes 8,026,109
Prepaid expenses 6,691,005
Prepaid rent Lehigh -- current 3,371,766
Prepaid real estate taxes 2,076,600
Inventory reserve -- Gordon Bros. 1,300,000
Prepaid advertising 741,743
Deferred rent - asset -- current 590,749
Prepaid rent Lehigh -- current 275,000
Prepaid insurance 247,564
Prepaid commission Boscov -- current 249,857
Prepaid miscellaneous taxes 182,530
Loans and exchanges -- employees 42,411
------------
Total current assets $283,067,359
Property and equipment
Fixtures, building improvements 282,641,635
Leasehold improvements 96,450,798
Construction in progress 4,296,322
Property/equipment capital lease 0
------------
383,388,755
Less: accumulated depreciation 238,458,616
------------
Property and equipment, net 144,930,139
Other assets 36,661,060
------------
Total Assets $464,658,558
============
Liabilities and Stockholders' Equity
Current Liabilities:
Accrued expenses 14,996,260
Accounts payable -- postpetition 13,636,053
Unpaid prepetition rents 4,017,549
Accrued professional fees and holdbacks 3,656,885
Fair value of derivative instruments 371,533
Current maturities of long-term debt 188,325
------------
Total current liabilities 36,866,605
------------
DIP loan 118,777,595
Liabilities subject to compromise
Accounts payable and accrued
liabilities, unsecured 116,455,210
Second lien term loan -- secured 38,068,386
Long term debt -- secured 6,986,521
------------
Total DIP and Liabilities Subject to Compromise 280,287,712
Deferred income tax 2,047,523
Other long-term liabilities
Deferred revenue -- landlord allowance 36,263,946
Deferred rent liability -- non-current 18,115,774
Insurance reserve 17,559,542
Deferred revenue -- credit card gain 14,688,119
Debt obligation Christiana 5,315,580
Long-term liability Lehigh 5,230,555
Deferred revenue -- Monmouth sale 4,079,663
Deferred revenue -- Boscoverage 2,797,171
Deferred revenue -- vendors 250,000
------------
Total long-term liabilities 386,635,585
------------
Total Liabilities 423,502,190
Stockholders' Equity
Preferred stock, Class A 0
Preferred stock, Class B 0
Preferred stock, Class C 0
Common stock 53,960
Common stock, non-voting 28,484,091
Partners' capital/capital contribution 0
Interest rate derivative equity adjustment (218,832)
Additional paid-in capital 12,307,096
Members' equity 0
Treasury stock (180,562,771)
Retained earnings -- prepetition 191,505,544
Current earnings -- postpetition (10,412,720)
------------
Total Stockholders' Equity 41,156,368
------------
Total Liabilities & Equity $464,658,558
============
Boscov's, Inc., et al.
Statement of Operations
From September 1 to October 4, 2008
Boscov's
Boscov's Department
Inc., et al. Store LLC
------------ -----------
Net sales $75,537,637 $75,537,637
Cost of sales:
Merchandise inventory 199,008,000 199,008,000
------------ -----------
Purchases 77,294,119 77,294,119
Less: Purchase discounts 0 0
Net purchases 77,294,119 77,294,119
Freight In 430,349 430,349
Cost of purchases 77,724,468 77,724,468
Merchandise available for sale 276,732,468 276,732,468
------------ -----------
Merchandise inventory,
end of period 231,416,000 231,416,000
------------ -----------
Cost of goods sold 45,316,468 45,316,468
------------ -----------
Gross margin 30,221,169 30,221,169
Other income:
Other income 60,927 60,927
Gain on sale of assets 74,318 9,099
Royalties on trademark 0 (763,959)
Royalties - Boscov's charge sales 1,545,437 1,545,437
------------ -----------
Total other income 1,680,682 851,503
Occupancy and Buying Costs:
Rent/CAMs 2,877,794 2,938,055
Buyers costs 1,840,609 1,840,609
Utilities 1,329,289 1,329,289
Real estate taxes 1,123,063 1,123,063
Equipment rental 645,706 645,706
Delivery expenses 526,770 475,547
Store cleaning 496,955 496,955
Employee discount 213,133 213,133
Repairs 165,666 165,666
Maintenance 115,471 115,471
Office equipment maintenance/
service contracts 66,744 66,744
Loss prevention 28,071 28,071
Trash 16,986 16,986
Boscov's rewards points 14,616 14,616
Buying service 10,452 10,452
Marking 7,997 7,997
Parking lot maintenance 7,224 7,224
Storage trailers 5,222 0
Store opening expenses 0 0
Kitchen rent (17,943) (17,943)
------------ -----------
Total occupancy & buying 9,473,825 9,477,640
Total Cost of Goods Sold
and Occupancy and Buying 54,790,293 54,794,108
------------ -----------
Gross profit 22,428,026 21,595,032
Selling, general and
administrative expenses:
Payroll 16,226,402 15,254,840
Newspaper 4,168,133 4,168,133
Professional fees 2,062,576 2,056,476
Payroll taxes 1,121,569 1,103,400
Hospitalization 847,144 856,831
Television 550,189 550,189
Bank card charges 548,819 548,735
Internet 448,535 448,535
Insurance 389,291 389,291
Electronic data processing 330,852 330,852
Insurance claims -- prior period 235,434 235,434
Warehouse trucks 216,800 282,723
Credit expense 207,530 207,530
Wrapping 198,749 198,749
Promotional gift cards 144,101 144,101
Telephone 139,353 139,133
Automobile expense 120,796 117,528
Miscellaneous taxes 112,810 112,663
Outside services 104,104 104,104
Miscellaneous 95,688 95,640
Bank service charge 92,411 92,382
Supplies 63,557 63,558
Radio 61,107 61,107
Travel 51,344 51,344
Marketing 48,894 48,894
Cleaning supplies 44,888 44,888
Office supplies 44,445 44,445
Group life insurance 42,730 42,730
Employee expense 40,520 40,520
Display 36,255 36,255
Free bus and parking 25,509 25,509
Postage 14,546 14,546
Form and equipment supplies 11,447 11,447
Subscriptions 6,499 6,499
Check scan 5,013 5,013
Employee expense -- classified ads 734 734
Supplies -- print shop 569 569
Administrative fees 500 (2,000)
Collection expense 167 167
Accounting fees (2,789) (2,789)
Third party expense reimbursement (5,972) (5,972)
Store error dist. (13,676) (13,676)
Contributions (33,014) (33,014)
Gift cards (45,964) (45,964)
Leased department advertising (85,631) (85,631)
Liquidation results (195,710) (195,710)
PM income (258,137) (258,137)
Co-op advertising (1,301,988) (1,301,988)
Buyers costs (1,840,609) (1,840,609)
------------ -----------
Total Selling, General
and Admin. Expenses 25,076,519 24,150,004
Depreciation 1,716,311 1,681,433
Deferred financing amortization 216,015 216,015
Interest expense 1,110,415 1,423,381
Profit sharing / 401K match 0 0
------------ -----------
Income (Loss) before taxes (5,691,234) (5,875,802)
Provision for income taxes (2,134,213) 3,800
------------ -----------
Net income (loss) ($3,557,021) ($5,879,602)
============ ===========
The Debtors also filed with the Court a summary of their cash
receipts and disbursements for September 2008, a copy of which is
available for free at:
http://bankrupt.com/misc/CashFlows_Sept2008_Boscovs.pdf
About Boscov's Inc.
Headquartered in Reading, Pennsylvania, Boscov's Inc. --
http://www.boscovs.com/-- is America's largest family-owned
independent department store, with 49 stores in Pennsylvania, New
York, New Jersey, Maryland, Delaware and Virginia.
Boscov's Inc. and its debtor-affiliates filed for Chapter 11
protection on Aug. 4, 2008 (Bankr. D. Del. Case No.: 08-11637).
Judge Kevin Gross presides over the cases.
David G. Heiman, Esq., and Thomas A. Wilson, Esq., at Jones Day,
serve as the Debtors' lead counsel. The Debtors' financial
advisor is Capstone Advisory Group and their investment banker is
Lehman Brothers, Inc. The Debtors' claims agent is Kurtzman
Carson Consultants L.L.C.
Boscov's listed assets of $538 million and liabilities of
$479 million in its bankruptcy filing.
(Boscov's Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
CATHOLIC CHURCH: Fairbank's Monthly Operating Report for September
------------------------------------------------------------------
Catholic Bishop of Northern Alaska
Statement of Financial Position
As of September 30, 2008
CBNA Held for
ASSETS Total Others
----- --------
Cash and cash equivalents $355,038 $86,101
Investments:
Valuables in safe 168 -
Trust account @ market 790,199 -
457 Plan assets @ market - 145,331
Endowment Fund @ market - 14,698,812
Endowment Fund-earnings @ market (819,862) -
Stocks - -
Limited partnerships 261,324 -
Accounts receivable, net of allowance:
Tuition, fees and others 1,386,683 -
For parishes and school 107,976 -
Other 7,131 -
Notes and other receivables 347,421 -
Grants pledged 125,000 -
Fixed assets, net at cost:
Land and building 7,780,155 -
Aircraft 340,726 -
Equipment - -
Other assets 201,063 -
---------- ----------
Total Assets $10,883,028 $14,930,245
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable/accrued liabilities $509,499 -
Notes payable 216,966 -
Benefits payable 76,837 -
Deferred revenue 1,517,053 -
Annuities payable 215,684 -
Other liabilities 24,061 -
Payroll-related liabilities:
Payroll taxes 56,981 -
General vacation accrual account 16,339 -
Accrued leave 229,691 -
Insurance:
Long term disability 415 -
Insurance deposits A/R 174,479 -
Insurance reserves expense 40,562 -
Indemnity insurance reserves 69 -
Medical/Dental payroll deduction 306,605 -
CBNA building loan - -
---------- ----------
Total Liabilities 3,385,248 -
---------- ----------
Total net assets 7,497,780 14,930,245
---------- ----------
Total Liabilities and Net Assets $10,883,028 $14,930,245
========== ==========
Catholic Bishop of Northern Alaska
Statement of Activities
For the month ending September 30, 2008
CBNA Held for
Total Others
Support and revenue: ----- --------
Parish assessments - -
Tuition, net of tuition assistance $168,316 -
Curricular income 17,103 -
Donations 607,098 -
Investment income (797,011) ($129,182)
Other income 16,939 3,300
Temporarily restricted gifts 16,687 -
---------- ----------
Total support and revenue 29,133 (125,882)
Expenses:
Operating expenses 107,794 -
Supplies 19,841 -
Repair & Maintenance (6,145) -
Utilities 30,378 -
Insurance 10,104 -
Staff Expenses:
Salaries & Wages 403,123 -
Payroll Taxes 25,382 -
Employee Benefits 92,098 -
Curricular Expenses 14,026 -
Recruiting, advertising and PRs 10,268 -
Travel Expenses 16,348 -
Student related expenses 2,366 -
Contributions - -
Professional and technical fees 25,222 -
Investment services 9,984 $1,522
Subsidies 149,985 -
Rental/Lease Expense 65,908 -
Assessments 1,252 -
Fund Raising Expense 20,369 -
Radio Programming Expense 4,995 -
Radio Technical Dept. Expenses 9,663 -
Miscellaneous Expense 1,586 -
---------- ----------
Total General 1,014,555 1,522
Funds released fr. restricted funds - -
Net change in designated funds - -
---------- ----------
Total Expenses 1,014,555 1,522
---------- ----------
Increase (decrease) in net assets (985,421) (127,405)
---------- ----------
Re-organizational costs 18,752 -
Increase (decrease) in net assets ---------- ----------
after Re-org costs (1,004,174) 127,405
Net assets:
Beginning of month 8,501,954 14,802,840
---------- ----------
End of month $7,497,780 $14,930,245
========== ==========
Catholic Bishop of Northern Alaska
Cash Receipts and Disbursements
For the month ending September 30, 2008
CBNA Held for
Total Others
----- --------
Beginning balance - February 2008 $485,237 $77,681
Total receipts - prior general
account reports 6,623,243 761,205
Less total disbursements 6,938,467 786,697
---------- ----------
Beginning balance - August 31, 2008 170,012 52,188
Receipts during current period:
Funds received by CSF from CBNA 8,333 -
Funds collected from others 227,186 227,186
Transfers between internal accounts 62,271 -
Accounts receivable - post filing 236,622 -
Transfers from investment accounts 200,000 -
Custodial funds 75,074 75,074
Funds received by CBNA from KNOM 54,470 -
Funds received from Catholic Schools 34,204 -
Interest & dividends 619 -
Donations 604,779 -
Payment refund/return 18,803 -
Weather service income 150 -
Restricted funds and endowment gifts 17,437 -
Other income/fees 4,524 -
Co-curricular income 8,423 -
Curricular income 93 -
Miscellaneous 3,508 -
---------- ----------
Total receipts this period 1,556,503 302,260
---------- ----------
Balance 1,726,515 354,449
Less total disbursements:
Transfers to Catholic Schools 22,690 -
Transfers from KNOM to CBNA 54,470 -
Transfers between internal accounts 62,271 -
Transfers to CBNA from CSF 50,590 -
Custodial funds 14,685 14,685
Administrative 3,264 -
Co-curricular expense 10,490 -
Curricular expense 5,855 -
Funds disbursed for others 68,869 68,869
Bank fees and charges 768 -
Interest expense 753 -
Programming - News service 2,906 -
Wages & salaries 419,186 -
Employee benefits 14,389 -
Fundraising 20,369 -
Mission & program support 27,175 -
Equipment & supplies 51,346 -
Telephone/Internet 766 -
Staff development 12,535 -
Utilities 37,665 -
Refunds 1,516 -
Services & insurance 111,978 -
US Trustees fees - -
Education expenses 10,493 -
Maintenance/repairs 18,868 -
Building supplies and expenses 148,141 -
Annuities 2,257 -
School supplies 6,694 -
Travel 19,006 -
NSF's 90 -
Postage 2,225 -
Professional fees 14,319 -
Printing and copying 1,150 -
Rent 54,438 -
Dues/Fees 6,492 -
Miscellaneous 8,250 -
---------- ----------
Total disbursements this period 1,286,975 83,554
---------- ----------
Ending balance - September 30, 2008 $439,540 $270,894
========== ==========
About Diocese of Fairbanks
The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic
Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka
The Diocese of Fairbanks, aka CBNA –- http://www.cbna.info/--
filed for chapter 11 bankruptcy on March 1, 2008 (Bankr. D. Alaska
Case No. 08-00110). Susan G. Boswell, Esq., at Quarles & Brady
LLP represents the Debtor in its restructuring efforts. Michael
R. Mills, Esq., of Dorsey & Whitney LLP serves as the Debtor's
local counsel and Cook, Schuhmann & Groseclose Inc. as its special
counsel. Judge Donald MacDonald, IV, of the United States
Bankruptcy Court for the District of Alaska presides over
Fairbanks' Chapter 11 case. The Debtor's schedules show total
assets of $13,316,864 and total liabilities of $1,838,719.
The church's plans to file its bankruptcy plan and disclosure
statement on July 15, 2008. Its exclusive plan filing period
expires on Jan. 15, 2009. (Catholic Church Bankruptcy News, Issue
No. 133; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
FEDERAL-MOGUL: Posts $35 Million Net Loss in August
---------------------------------------------------
Federal-Mogul Global, Inc., et al.
Unaudited Balance Sheet
As of August 31, 2008
(In millions)
Assets
Cash and equivalents $593.1
Accounts receivable 601.0
Inventories 460.6
Deferred taxes 224.0
Prepaid expenses and other current assets 42.1
--------
Total current assets 1,920.9
Summary of Unpaid Postpetition Debits 66.0
Intercompany Loans Receivable (Payable) (76.2)
--------
Intercompany Balances (10.1)
Property, plant and equipment 719.9
Goodwill -
Other intangible assets -
Insurance recoverable -
Other non-current assets 439.9
--------
Total Assets $3,070.4
========
Liabilities and Shareholders' Equity
Short-term debt $29.6
Accounts payable 281.8
Accrued compensation 57.5
Restructuring and rationalization reserves 5.0
Current portion of asbestos liability -
Interest payable 8.2
Other accrued liabilities 233.7
--------
Total current liabilities 615.8
Long-term debt 2,767.4
Post-employment benefits 570.3
Other accrued liabilities 798.9
Liabilities subject to compromise (0.1)
Shareholders' equity:
Preferred stock 1,023.2
Common stock 120.5
Additional paid-in capital 7,929.6
Accumulated deficit (10,973.7)
Accumulated other comprehensive income 218.4
Other -
--------
Total Shareholders' Equity (1,682.0)
--------
Total Liabilities and Shareholders' Equity $3,070.4
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Operations
For the Month Ended August 31, 2008
(In millions)
Net sales $231.2
Cost of products sold 194.2
--------
Gross margin 37.0
Selling, general & administrative expenses (36.3)
Amortization -
Reorganization items (0.7)
Fresh Start Accounting expense 55.7
Interest income (expense), net (12.9)
Other income (expense), net (13.3)
--------
Earnings before Income Taxes 29.5
Income Tax (Expense) Benefit 5.5
--------
Earnings before cumulative effect of change
in accounting principle 35.0
Cumulative effect of change in accounting principle -
--------
Net Earnings (Loss) $35.0
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Cash Flows
For the Month Ended August 31, 2008
(In millions)
Cash Provided From (Used By) Operating Activities:
Net earnings (loss) $35.0
Adjustments to reconcile net earnings (loss) to net cash:
Depreciation and amortization 5.4
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 accounting principle -
Change in post-employment benefits 0.7
Decrease (increase) in accounts receivable 15.3
Decrease (increase) in inventories 3.5
Increase (decrease) in accounts payable 17.0
Change in other assets & other liabilities (52.3)
Change in restructuring charge (0.1)
Refunds (payments) against asbestos liability -
--------
Net Cash Provided From Operating Activities 24.4
Cash Provided From (Used By) Investing Activities:
Expenditures for property, plant & equipment (5.0)
Proceeds from sale of property, plant & equipment -
Proceeds from sale of businesses -
Business acquisitions, net of cash acquired -
Other (9.2)
--------
Net Cash Provided From (Used By) Investing Activities (14.2)
Cash Provided From (Used By) Financing Activities:
Increase / (decrease) in debt 1.9
Sale (repurchase) of accounts receivable
under securitization -
Dividends -
Other -
--------
Net Cash Provided From Financing Activities 1.9
Increase (Decrease) in Cash and Equivalents 12.1
Cash and equivalents at beginning of period 581.0
--------
Cash and equivalents at end of period $593.1
========
Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's foremost
original equipment manufacturers of automotive, light commercial,
heavy-duty, agricultural, marine, rail, off-road and industrial
vehicles, as well as the worldwide aftermarket. Founded in
Detroit in 1899, the company is headquartered in Southfield,
Michigan, and employs 45,000 people in 35 countries. Aside from
the U.S., Federal-Mogul also has operations in other locations
which includes, among others, Mexico, 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 &
Jones, P.C., represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed $10.15 billion in assets and $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. The Debtors 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 Fourth Amended Plan was confirmed by the Bankruptcy
Court on Nov. 8, 2007, and affirmed by the District Court on
November 14. Federal-Mogul emerged from chapter 11 on Dec. 27,
2007.
(Federal-Mogul Bankruptcy News, Issue No. 175; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
FEDERAL-MOGUL: Posts $47.2 Million Net Loss in September
--------------------------------------------------------
Federal-Mogul Global, Inc., et al.
Unaudited Balance Sheet
As of September 30, 2008
(In millions)
Assets
Cash and equivalents $539.0
Accounts receivable 616.6
Inventories 452.7
Deferred taxes 221.4
Prepaid expenses and other current assets 62.9
--------
Total current assets 1,892.6
Summary of Unpaid Postpetition Debits 56.3
Intercompany Loans Receivable (Payable) (76.3)
--------
Intercompany Balances (20.0)
Property, plant and equipment 715.0
Goodwill -
Other intangible assets -
Insurance recoverable -
Other non-current assets 448.3
--------
Total Assets $3,035.9
========
Liabilities and Shareholders' Equity
Short-term debt $29.6
Accounts payable 294.4
Accrued compensation 58.7
Restructuring and rationalization reserves 10.5
Current portion of asbestos liability -
Interest payable 8.5
Other accrued liabilities 260.3
--------
Total current liabilities 662.0
Long-term debt 2,761.9
Post-employment benefits 559.2
Other accrued liabilities 814.9
Liabilities subject to compromise (0.1)
Shareholders' equity:
Preferred stock 1,023.2
Common stock 91.0
Treasury shares (16.7)
Additional paid-in capital 7,929.0
Accumulated deficit (10,966.6)
Accumulated other comprehensive income 178.2
Other -
--------
Total Shareholders' Equity (1,761.9)
--------
Total Liabilities and Shareholders' Equity $3,035.9
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Operations
For the Month Ended September 30, 2008
(In millions)
Net sales $235.0
Cost of products sold 191.4
--------
Gross margin 43.6
Selling, general & administrative expenses (26.5)
Amortization -
Reorganization items (0.8)
Fresh Start Accounting expense (61.3)
Interest income (expense), net (15.3)
Other income (expense), net 13.0
--------
Earnings before Income Taxes (47.4)
Income Tax (Expense) Benefit 0.1
--------
Earnings before cumulative effect of change
in accounting principle (47.2)
Cumulative effect of change in acctg. principle -
--------
Net Earnings (Loss) ($47.2)
========
Federal-Mogul Global, Inc., et al.
Unaudited Statement of Cash Flows
For the Month Ended September 30, 2008
(In millions)
Cash Provided From (Used By) Operating Activities:
Net earnings (loss) ($47.2)
Adjustments to reconcile net earnings (loss) to net cash:
Depreciation and amortization 11.5
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 (11.1)
Decrease (increase) in accounts receivable (16.2)
Decrease (increase) in inventories 7.5
Increase (decrease) in accounts payable 13.5
Change in other assets & other liabilities (4.4)
Change in restructuring charge 5.5
Refunds (payments) against asbestos liability -
--------
Net Cash Provided From Operating Activities (40.9)
Cash Provided From (Used By) Investing Activities:
Expenditures for property, plant & equipment (6.1)
Proceeds from sale of property, plant & equipment -
Proceeds from sale of businesses -
Business acquisitions, net of cash acquired -
Other (1.5)
--------
Net Cash Provided From (Used By) Investing Activities (7.6)
Cash Provided From (Used By) Financing Activities:
Increase / (decrease) in debt (5.5)
Sale (repurchase) of accounts receivable
under securitization (0.1)
Dividends -
Other -
--------
Net Cash Provided From Financing Activities (5.6)
Increase (Decrease) in Cash and Equivalents (54.1)
Cash and equivalents at beginning of period 593.1
--------
Cash and equivalents at end of period $539.0
========
Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's foremost
original equipment manufacturers of automotive, light commercial,
heavy-duty, agricultural, marine, rail, off-road and industrial
vehicles, as well as the worldwide aftermarket. Founded in
Detroit in 1899, the company is headquartered in Southfield,
Michigan, and employs 45,000 people in 35 countries. Aside from
the U.S., Federal-Mogul also has operations in other locations
which includes, among others, Mexico, 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 &
Jones, P.C., represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed $10.15 billion in assets and $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. The Debtors 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 Fourth Amended Plan was confirmed by the Bankruptcy
Court on Nov. 8, 2007, and affirmed by the District Court on
November 14. Federal-Mogul emerged from chapter 11 on Dec. 27,
2007.
(Federal-Mogul Bankruptcy News, Issue No. 175; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
FRONTIER AIRLINES: Files Monthly Operating Report for September
---------------------------------------------------------------
Frontier Airlines Holdings, Inc. (OTC: FRNTQ) (BULLETIN BOARD:
FRNTQ) filed its Monthly Operating Report for September 2008.
Frontier reported an operating loss of $10.4 million and a
consolidated net loss of $20.8 million for the month of September
2008. For the second fiscal quarter ended Sept. 30, 2008, the
company reported a $5.8 million operating loss and a $29.7 million
consolidated net loss.
Frontier's September results included $7.0 million in
reorganization costs, $1.4 million in tax expense related to the
amount expected to be due on the realized gain on aircraft sales
and $2.1 million in unrealized losses on fuel hedges. Included
in the $7.0 million in reorganization costs were:
-- $13.5 million for a non-cash equipment write-off;
-- $1.8 million related to the write-off of debt issuance
cost on convertible bonds; and
-- $1.6 million in professional fees related to the
reorganization.
These items were offset by recorded gains of $9.9 million from two
aircraft sales during the month and a gain on a contract
termination and other net gains related to settlements.
Contributing to Frontier's operating loss was a 54 percent
increase in fuel costs per gallon, excluding fuel hedging
activities, as compared to the same period last year as well as a
14 percent decrease in capacity year-over-year.
"Despite the net loss, we are pleased with the results of our
restructuring plan and continue to have success managing our
liquidity," said Frontier CEO Sean Menke. "Our cash and short-
term investments remained relatively stable in September, which is
a direct result of our diligent cash management efforts, our
continued successes with cost management and the realized proceeds
from our aircraft sales."
FRONTIER AIRLINES HOLDINGS, INC., ET AL.
Unaudited Condensed Consolidated Balance Sheet
As of September 30, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $72,671,000
Short-term investments 3,740,000
Restricted investments 131,037,000
Receivables, net of an allowance for
doubtful accounts 41,533,000
Security and other deposits -
Prepaid expenses and other assets 23,775,000
Inventories, net of allowance 19,500,000
Assets held for sale 814,000
--------------
Total current assets 293,070,000
Property and other equipment, net 721,524,000
Security and other deposits 34,927,000
Aircraft pre-delivery payments 3,497,000
Restricted investments 2,987,000
Deferred loan expenses and other assets 6,879,000
--------------
Total Assets $1,062,884,000
==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities not subject to compromise:
CURRENT LIABILITIES:
Accounts payables $34,207,000
Air traffic liability 187,781,000
Other accrued expenses 80,850,000
Income tax payable 1,375,000
Deferred revenue and other current liabilities 20,984,000
PDP financing -
DIP financing 30,000,000
--------------
Total current liabilities not
subject to compromise 355,197,000
Deferred revenue and other liabilities 22,091,000
--------------
Total liabilities not subject to compromise 377,288,000
Liabilities subject to compromise 619,671,000
--------------
Total Liabilities 996,959,000
STOCKHOLDERS' DEFICIT:
Preferred stock -
Common stock 37,000
Additional paid-in capital 196,415,000
Unearned ESOP shares (206,000)
Other comprehensive loss -
Accumulated deficit (130,321,000)
--------------
Total Stockholders' Equity 65,925,000
--------------
Total Liabilities and Stockholders' Equity $1,062,884,000
==============
FRONTIER AIRLINES HOLDINGS, INC., ET AL
Unaudited Condensed Consolidated Statement of Operations
Month Ended September 30, 2008
Revenues:
Passenger $91,663,000
Cargo 584,000
Other 3,618,000
--------------
Total revenues 95,865,000
Operating expenses:
Flight operations 13,261,000
Aircraft fuel 48,622,000
Aircraft lease 9,931,000
Aircraft and traffic servicing 14,100,000
Maintenance 7,613,000
Promotion and sales 3,489,000
General and administrative 5,822,000
Operating expenses -- regional partner -
Loss (gain) on sales of assets, net (34,000)
Employee separation and other charges -
Depreciation 3,422,000
--------------
Total operating expenses 106,226,000
--------------
Operating loss (10,361,000)
Non-operating income (expense):
Interest income 465,000
Interest expense (2,406,000)
Loss from early extinguishment of debt (106,000)
Other, net (57,000)
--------------
Total non-operating expense, net (2,104,000)
Loss before reorganization items & income taxes (12,465,000)
Reorganization items 7,024,000
Income taxes 1,355,000
--------------
Net Loss ($20,844,000)
==============
FRONTIER AIRLINES HOLDINGS, INC., ET AL.
Unaudited Condensed Consolidated Statement of Cash Flow
Month Ended September 30, 2008
Cash flows from operating activities:
Net Loss ($20,844,000)
Adjustments to reconcile net loss to net cash
used in operating activities:
ESOP and stock option compensation expense 16,000
Depreciation and amortization 3,771,000
Assets beyond economic repair 177,000
Mark to market losses on derivative contracts 2,080,000
Proceeds received for settled
derivative contracts -
Loss (Gain) on disposal of equipment
and other assets, net (34,000)
Loss on early extinguishment of debt 106,000
Unrealized loss on short-term investments -
Changes in operating assets and liabilities:
Restricted investments 7,072,000
Receivables 12,142,000
Security and other deposits (6,110,000)
Prepaid expenses and other assets 3,505,000
Inventories (3,717,000)
Other assets 24,000
Accounts payable (11,981,000)
Air traffic liability (6,742,000)
Other accrued expenses (8,903,000)
Deferred revenue and other liabilities 984,000
Reorganization items 7,024,000
--------------
Net cash used in operating activities (21,430,000)
Cash flows from reorganization activities
Net cash used in reorganization activities (1,033,000)
--------------
Total net cash used in operating activities (22,463,000)
Cash flows from investing activities:
Aircraft purchase deposits made -
Aircraft purchase deposits returned -
Sale of short-term investment -
Proceeds from the sale of property and
equipment and assets held for sale 44,000
Capital expenditures (1,567,000)
Proceeds from the sale of aircraft
reorganization activity 55,000,000
--------------
Net cash provided by investing activities 53,477,000
Cash flows from financing activities:
Proceeds from DIP financing (postpetition) -
Extinguishment of long-term borrowings -
Principal payments on long-term borrowings (2,490,000)
Extinguishment of long-term borrowings --
reorganization activity (30,037,000)
Principal payments on short-term borrowing -
Payment of financing fees (2,000)
--------------
Net cash used in financing activities (32,529,000)
Decrease in cash and cash equivalents (1,515,000)
Cash and cash equivalents at beginning of period 74,186,000
--------------
Cash and cash equivalents at end of period $72,671,000
==============
About Frontier Airlines Inc.
Headquartered in Denver, Colorado, Frontier Airlines Inc. --
http://www.frontierairlines.com/-- provides air transportation
for passengers and freight. It operates jet service carriers
linking Denver, Colorado hub to 46 cities coast-to-coast, 8 cities
in Mexico, and 1 city in Canada, as well as provide service from
other non-hub cities, including service from 10 non-hub cities to
Mexico.
The Debtor and its debtor-affiliates filed for Chapter 11
protection on April 10, 2008, (Bankr. S.D. N.Y. Case No.:
08-11297 thru 08-11299.) Benjamin S. Kaminetzky, Esq., and Hugh
R. McCullough, Esq., at Davis Polk & Wardwell, represent the
Debtors in their restructuring efforts. Togul, Segal & Segal
LLP is the Debtors' Conflicts Counsel, Faegre & Benson LLP is
the Debtors' Special Counsel, and Kekst and Company is the
Debtors' Communications Advisors.
(Frontier Airlines Bankruptcy News, Issue No. 26; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
INTERSTATE BAKERIES: Posts $5.7MM Loss in 4 Weeks Ended Sept. 20
----------------------------------------------------------------
Interstate Bakeries Corporation and Subsidiaries
Unaudited Consolidated Monthly Operating Report
Four Weeks Ended September 20, 2008
REVENUE
Gross Income $216,956,324
Less Cost of Goods Sold
Ingredients, Packaging & Outside Purchasing 61,701,635
Direct & Indirect Labor 35,259,199
Overhead & Production Administration 10,478,169
-------------
Total Cost of Goods Sold 107,439,003
-------------
Gross Profit 109,517,321
-------------
OPERATING EXPENSES
Owner-Draws/Salaries 0
Selling & Delivery Employee Salaries 48,594,872
Advertising and Marketing 1,679,412
Insurance (Property, Casualty, & Medical) 11,517,286
Payroll Taxes 4,100,826
Lease and Rent 2,882,039
Telephone and Utilities 1,006,298
Corporate Expense (Including Salaries) 6,873,900
Other Expenses 29,861,210
-------------
Total Operating Expenses 106,575,843
-------------
EBITDA 2,941,478
Restructuring & Reorganization Charges (305,315)
Depreciation and Amortization 4,502,810
Abandonment 44,744
Property & Equipment Impairment 0
Other(Income)/Expense (37,148)
Gain/Loss Sale of Property 0
Interest Expense 4,554,886
-------------
Operating Income (Loss) (5,818,499)
Income Tax Expense (Benefit) (77,704)
-------------
NET Income (Loss) ($5,740,795)
=============
CURRENT ASSETS
Accounts Receivable at end of period $135,082,545
Increase (Dec.) in Accounts Receivable 1,542,750
Inventory at end of period 64,217,828
Increase (Decrease) in Inventory for period 1,557,624
Cash at end of period 21,829,847
Increase (Decrease) in Cash for period (824,763)
Restricted Cash 21,090,158
Increase (Dec.) in Restricted Cash for period 12,225
LIABILITIES
Increase (Decrease) in Liabilities
Not Subject to Compromise 7,193,969
Increase (Decrease) in Liabilities
Subject to Compromise (3,856)
Taxes payable:
Federal Payroll Taxes 4,063,342
State/Local Payroll Taxes 3,051,533
State Sales Taxes 796,340
Real Estate and Personal Property Taxes 7,549,142
Other 2,842,837
-------------
Total Taxes Payable $17,943,194
=============
About IBC
Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh-baked
bread and sweet goods, under various national brand names,
including Wonder(R), Baker's Inn(R), Merita(R), Hostess(R) and
Drake's(R). Currently, IBC employs more than 25,000 people and
operates 45 bakeries, as well as approximately 800 distribution
centers and approximately 800 bakery outlets throughout the
country.
The company and eight of its subsidiaries and affiliates filed for
chapter 11 protection on Sept. 22, 2004 (Bankr. W.D. Mo. Case No.
04-45814). J. Eric Ivester, Esq., and Samuel S. Ory, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in
their restructuring efforts. When the Debtors filed for
protection from their creditors, they listed $1,626,425,000 in
total assets and $1,321,713,000 (excluding the $100,000,000 issue
of 6% senior subordinated convertible notes due Aug. 15, 2014) in
total debts.
The Debtors' filed their Chapter 11 Plan and Disclosure Statement
on Nov. 5, 2007. Their exclusive period to file a chapter 11 plan
expired on Nov. 8, 2007. On Jan. 25, 2008, the Debtors filed
their First Amended Plan and Disclosure Statement. On Jan. 30,
2008, the Debtors received court approval of the first amended
Disclosure Statement. IBC did not receive any qualifying
alternative proposals for funding its plan of reorganization in
accordance with the court-approved alternative proposal
procedures. As a result, no auction was held on Jan. 22, 2008, as
would have been required under those procedures.
The Debtors, on Oct. 4, 2008, filed another Plan of
Reorganization, which contemplates IBC's emergence from Chapter 11
as a stand-alone company. The filing of the Plan was made in
connection with the plan funding commitments, on Sept. 12, 2008,
from an affiliate of Ripplewood Holdings L.L.C. and from
Silver Point Finance, LLC, and Monarch Master Funding Ltd.
(Interstate Bakeries Bankruptcy News, Issue No. 117; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
LANDSOURCE COMMUNITIES: Amends Balance Sheet for August 2008
------------------------------------------------------------
LandSource Communities Development LLC and its debtor-affiliates
corrected the Consolidated Balance Sheet and the Consolidated
Statements of Operations of their monthly operating report for
the month of August 2008.
LandSource Communities Development, LLC
Consolidated Balance Sheet
As of August 31, 2008
Assets
Cash $11,140,038
Receivables 36,536,034
Inventories 1,373,763,518
Operating Properties, net 86,205,063
Investment in unconsolidated entities 21,940,405
Other assets 47,363,152
--------------
Total Assets $1,576,948,210
==============
Liabilities and Members' Capital
Liabilities
Prepetition
Debt- Principal $246,414,305
Debt - Accrued interest 11,756,566
Accounts payable 29,652,806
Golf course / Other deposits 7,889,156
Payables to affiliates 59,345,814
Refundable Deposits owed affiliate 26,469,916
Tenant deposits 463,797
Other 4,391,489
-----------
Sub-total 386,383,849
Postpetition
Accounts payable 3,520,426
Property tax accrual 2,375,471
Payables to affiliates 582,570
---------
Sub-total 6,478,467
Others
Debt- DIP Revolver 14,672,624
Debt - DIP Term Roll-Up 1,032,853,563
Development accruals 38,161,763
Accrued Employee Related Benefits 7,775,271
Non-qualified Pension Plan Accruals 5,685,622
Reserves - school fees, energy remediation 15,119,129
Non-refundable deposits 30,900,799
Deferred Revenue 91,169,701
Other 3,435,433
-------------
Sub-total 1,239,773,905
Members' Capital (55,688,102)
--------------
Total Liabilities and Members' Capital $1,576,948,119
==============
Other Operations, net
Equity in earnings of unconsolidated entities ($151,465)
Rental operations 43,912
Valencia Water Company 0
Club operations (141,166)
Interest income 17,823
Interest expense (6,653,548)
Loss on debt restructuring 0
Loss on interest rate swap termination 0
Miscellaneous 534,398
---------
Total Other Operations, net (6,050,046)
----------
Net Earnings (Loss) $5,235,053
==========
LandSource Communities Development, LLC
Consolidated Statements of Operations
Month Ended August 31, 2008
Statistical Information
Homesites sold to related parties 0
Homesites sold to third parties 0
Acreage sold to related parties 0
Acreage sold to third parties 0
Homes sold to third parties 0
Land Sale Operations
Sales related parties $2,216,575
Sales to third parties 357,955
---------
Total Land Sale Revenue 2,574,530
---------
Cost of sales to related parties 1,932,242
Cost of sales to third parties 57,342
---------
Total Cost of Land Sales 1,989,584
---------
Gross Margin on Land Sales Operations 584,946
Home Sale Operations
Sales 0
Cost of sales 0
---------
Gross Margin on Home Sale Operations 0
---------
Operating Cost and Expenses
Field, selling, general & administrative 3,191,756
Management fees to related parties (13,891,909)
----------
Total Operating Costs and Expenses (10,700,153)
----------
Other Operations, net
Equity in earnings of unconsolidated entities (151,465)
Rental operations 343,912
Valencia Water Company 0
Club operations (141,166)
Interest income 17,823
Interest expense (6,653,548)
Loss on debt restructuring 0
Loss on interest rate swap termination 0
Miscellaneous 534,398
----------
Total Other Operations, net (6,050,046)
----------
Net Loss $5,235,053
==========
About LandSource Communities
LandSource Communities Development LLC, which operates in Arizona,
California, Florida, New Jersey, Nevada and Texas, is involved in
the planning and development of master planned communities and
transforming undeveloped land into ready-to-build home sites and
commercial properties. With the exception of one development
project in Marina del Rey, California, LandSource does not build
homes or commercial properties.
LandSource and 20 of its affiliates filed for chapter 11
bankruptcy protection before the U.S. Bankruptcy Court for the
District of Delaware on June 8, 2008 (Lead Case No. 08-11111).
The Debtors are represented by Marcia Goldstein, Esq., at Weil
Gotshal & Manges in New York, and Mark D. Collins, Esq., at
Richards Layton & Finger in Wilmington, Delaware. Lazard Freres &
Co. acts as the Debtors' financial advisors, and Kurtzmann Carson
Consultants serves as the Debtors' notice and claims agent.
According to the Troubled Company Reporter on May 22, 2008,
LandSource sought help from its lender consortium to restructure
$1.24 billion of its debt. LandSource engaged a 100-bank lender
group led by Barclays Capital Inc., which syndicates LandSource's
debt. LandSource had received a default notice on that debt from
the lender group after it was not able to timely meet its payments
during mid-April. However, LandSource failed to reach an
agreement with its lenders on a plan to modify and restructure its
debt, forcing it to seek protection from creditors. (LandSource
Bankruptcy News, Issue No. 16; http://bankrupt.com/newsstand/or
215/945-7000).
LANDSOURCE COMMUNITIES: Amends Operating Report for June 2008
-------------------------------------------------------------
LandSource Communities Development LLC and its debtor-affiliates
corrected the Consolidated Balance Sheet and the Consolidated
Statements of Operations of their monthly operating report for the
month of June 2008.
LandSource Communities Development, LLC
Consolidated Balance Sheet
As of June 30, 2008
Assets
Cash $8,079,815
Receivables 42,058,343
Inventories 1,347,340,721
Operating Properties, net 86,434,864
Investment in unconsolidated entities 22,254,590
Other assets 47,805,246
--------------
Total Assets $1,553,973,579
==============
Liabilities and Members' Capital
Liabilities:
Prepetition
Debt - principal $1,215,523,955
Debt - Accrued interest 28,674,406
Interest rate swap termination payment du 28,230,000
Accounts payable 32,410,898
Payables to affiliates 61,373,880
Refundable deposits owed affiliate 26,469,916
Tenant deposits 463,797
Other 3,614,459
-------------
Sub-total 1,396,761,311
Pospetition
Accounts payable 250,006
Property tax accrual 1,332,288
Payables to affiliates 11,305,413
----------
Sub-total 12,887,707
Other
Development accruals 35,477,936
Accrued Employee Related Benefits 7,465,073
Non-qualified Pension Plan Accruals 5,954,648
Reserves - school fess, energy remediation 15,115,558
Non-refundable deposits 30,900,799
Deferred Revenue 93,226,228
Golf Course/Other deposits 7,974,544
Other 3,420,871
-----------
Sub-total 199,535,657
--------------
Total Liabilities $1,609,184,675
Members' Capital (55,211,097)
--------------
Total Liabilities and Members' Capital $1,553,973,578
==============
LandSource Communities Development, LLC
Consolidated Statements of Operations
Month Ended June 30, 2008
Statistical Information
Homesites sold to related parties 0
Homesites sold to third parties 0
Acreage sold to related parties 0
Acreage sold to third parties 0
Homes sold to third parties 0
Land Sale Operations
Sales related parties ($9,309)
Sales to third parties 13,036
------
Total Land Sale Revenue 3,727
------
Cost of sales to related parties 73,941
Cost of sales to third parties 0
------
Total Cost of Land Sales 73,941
------
Gross Margin on Land Sales Operations (70,214)
------
Home Sale Operations
Sales 0
Cost of sales 0
-----
Gross Margin on Home Sale Operations 0
-----
Operating Cost and Expenses
Field, selling, general & administrative 5,929,933
Management fees to related parties 1,598,311
---------
Total Operating Costs and Expenses 7,528,244
---------
Other Operations, net
Equity in earnings of unconsolidated entities (22,371)
Rental operations 494,159
Valencia Water Company 0
Club operations (92,466)
Interest income 162,880
Interest expense (9,320,301)
Loss on debt restructuring 0
Loss on interest rate swap termination (25,392,563)
Miscellaneous 288,598
----------
Total Other Operations, net (33,882,064)
-----------
Net Earnings (Loss) ($41,480,522)
===========
About LandSource Communities
LandSource Communities Development LLC, which operates in Arizona,
California, Florida, New Jersey, Nevada and Texas, is involved in
the planning and development of master planned communities and
transforming undeveloped land into ready-to-build home sites and
commercial properties. With the exception of one development
project in Marina del Rey, California, LandSource does not build
homes or commercial properties.
LandSource and 20 of its affiliates filed for chapter 11
bankruptcy protection before the U.S. Bankruptcy Court for the
District of Delaware on June 8, 2008 (Lead Case No. 08-11111).
The Debtors are represented by Marcia Goldstein, Esq., at Weil
Gotshal & Manges in New York, and Mark D. Collins, Esq., at
Richards Layton & Finger in Wilmington, Delaware. Lazard Freres &
Co. acts as the Debtors' financial advisors, and Kurtzmann Carson
Consultants serves as the Debtors' notice and claims agent.
According to the Troubled Company Reporter on May 22, 2008,
LandSource sought help from its lender consortium to restructure
$1.24 billion of its debt. LandSource engaged a 100-bank lender
group led by Barclays Capital Inc., which syndicates LandSource's
debt. LandSource had received a default notice on that debt from
the lender group after it was not able to timely meet its payments
during mid-April. However, LandSource failed to reach an
agreement with its lenders on a plan to modify and restructure its
debt, forcing it to seek protection from creditors. (LandSource
Bankruptcy News, Issue No. 16; http://bankrupt.com/newsstand/or
215/945-7000).
LANDSOURCE COMMUNITIES: Amends Operating Report for July 2008
-------------------------------------------------------------
LandSource Communities Development LLC and its debtor-affiliates
corrected the Consolidated Balance Sheet and Consolidated
Statements of Operations of their monthly operating report for the
month of July 2008.
LandSource Communities Development, LLC
Consolidated Balance Sheet
As of July 31, 2008
Assets
Cash $14,752,211
Recievables 37,142,440
Inventories 1,362,875,475
Operating Properties, net 86,309,642
Investment in unconsolidated entities 22,091,870
Other assets 48,080,532
--------------
Total Assets $1,571,252,170
==============
Liabilities and Members' Capital
Liabilities
Prepetition
Debt- Principal $246,414,305
Debt - Accrued interest 9,586,566
Interest rate swap termination payment du 28,192,405
Accounts payable 7,932,460
Payables to affiliates 62,348,593
Refundable Deposits owed affiliate 26,469,916
Tenant deposits 463,797
Other 4,798,822
-----------
Sub-total 386,206,864
Postpetition
Accounts payable 330,150
Property tax accrual 1,801,836
Payables to affiliates 12,274,918
-----------
Sub-total 14,406,904
Others
Debt- DIP Revolver 11,200,000
Debt - DIP Term Roll-Up 1,025,805,331
Development accruals 38,233,092
Accrued Employee Related Benefits 7,611,607
Non-qualified Pension Plan Accruals 5,710,703
Reserves - school fees, energy remediation 15,122,079
Non-refundable deposits 30,900,799
Deferred Revenue 93,880,164
Other 3,097,992
-------------
Sub-total 1,231,561,767
Members' Capital (60,923,066)
--------------
Total Liabilities and Members' Capital $1,571,252,469
==============
LandSource Communities Development, LLC
Consolidated Statement of Operations
Month Ended July 31, 2008
Statistical Information
Homesites sold to related parties 0
Homesites sold to third parties 0
Acreage sold to related parties 0
Acreage sold to third parties 0
Homes sold to third parties 0
Land Sale Operations
Sales related parties $22,379
Sales to third parties 28,424
------
Total Land Sale Revenue 50,803
------
Cost of sales to related parties 13,582
Cost of sales to third parties 4,100
------
Total Cost of Land Sales 17,682
------
Gross Margin on Land Sales Operations 33,121
Home Sale Operations
Sales 0
Cost of sales 0
------
Gross Margin on Home Sale Operations 0
------
Operating Cost and Expenses
Field, selling, general & administrative 4,928,875
Management fees to related parties 1,644,063
---------
Total Operating Costs and Expenses 6,572,937
---------
Other Operations, net
Equity in earnings of unconsolidated entities (161,291)
Rental operations 256,047
Valencia Water Company 0
Club operations (317,951)
Interest income 138,291
Interest expense (5,516,230)
Loss on debt restructuring 0
Loss on interest rate swap termination 0
Miscellaneous 6,428,981
---------
Total Other Operations, net 827,648
----------
Net Earnings (Loss) ($5,712,168)
==========
About LandSource Communities
LandSource Communities Development LLC, which operates in Arizona,
California, Florida, New Jersey, Nevada and Texas, is involved in
the planning and development of master planned communities and
transforming undeveloped land into ready-to-build home sites and
commercial properties. With the exception of one development
project in Marina del Rey, California, LandSource does not build
homes or commercial properties.
LandSource and 20 of its affiliates filed for chapter 11
bankruptcy protection before the U.S. Bankruptcy Court for the
District of Delaware on June 8, 2008 (Lead Case No. 08-11111).
The Debtors are represented by Marcia Goldstein, Esq., at Weil
Gotshal & Manges in New York, and Mark D. Collins, Esq., at
Richards Layton & Finger in Wilmington, Delaware. Lazard Freres &
Co. acts as the Debtors' financial advisors, and Kurtzmann Carson
Consultants serves as the Debtors' notice and claims agent.
According to the Troubled Company Reporter on May 22, 2008,
LandSource sought help from its lender consortium to restructure
$1.24 billion of its debt. LandSource engaged a 100-bank lender
group led by Barclays Capital Inc., which syndicates LandSource's
debt. LandSource had received a default notice on that debt from
the lender group after it was not able to timely meet its payments
during mid-April. However, LandSource failed to reach an
agreement with its lenders on a plan to modify and restructure its
debt, forcing it to seek protection from creditors. (LandSource
Bankruptcy News, Issue No. 16; http://bankrupt.com/newsstand/or
215/945-7000).
LANDSOURCE COMMUNITIES: Posts $11.6 Million Net Loss in September
-----------------------------------------------------------------
LandSource Communities Development, LLC
Consolidated Balance Sheet
As of September 30, 2008
Assets
Cash $6,438,738
Receivables 45,090,902
Inventories 1,371,007,570
Operating Properties, net 88,081,951
Investment in unconsolidated entities 21,785,116
Other assets 47,203,522
--------------
Total Assets $1,579,607,799
==============
Liabilities and Members' Capital
Liabilities
Prepetition
Debt- Principal $246,414,305
Debt - Accrued interest 13,856,566
Interest rate swap termination payment du 29,405,028
Accounts payable 7,806,917
Payables to affiliates 58,487,201
Refundable Deposits owed affiliate 26,469,916
Tenant deposits 503,934
Other 4,389,219
-----------
Sub-total 387,333,086
Postpetition
Accounts payable 917,110
Property tax accrual 2,913,790
Other 660,395
Payable to affiliates 1,177,943
---------
Sub-total 5,669,238
Others
Debt- DIP Revolver 22,170,333
Debt - DIP Term Roll-Up 1,040,498,483
Development accruals 37,806,143
Accrued Employee Related Benefits 8,106,118
Non-qualified Pension Plan Accruals 5,712,160
Reserves - school fees 13,570,689
Reserves - energy remediation 2,067,211
Non-refundable deposits 29,840,447
Deferred Revenue 90,795,542
Other 3,307,266
-------------
Sub-total 1,253,874,392
-------------
Members' Capital (67,268,916)
--------------
Total Liabilities and Members' Capital $1,579,607,800
==============
LandSource Communities Development, LLC
Consolidated Statements of Operations
Month Ended September 30, 2008
Statistical Information
Homesites sold to related parties 0
Homesites sold to third parties 0
Acreage sold to related parties 0
Acreage sold to third parties 0
Homes sold to third parties 0
Land Sale Operations
Sales related parties $6,010,290
Sales to third parties 12,791
----------
Total Land Sale Revenue 6,023,081
----------
Cost of sales to related parties 5,460,100
Cost of sales to third parties 12,254
---------
Total Cost of Land Sales 5,472,354
---------
Gross Margin on Land Sales Operations 550,727
Home Sale Operations
Sales 0
Cost of sales 0
--------
Gross Margin on Home Sale Operations 0
--------
Operating Cost and Expenses
Field, selling, general & administrative 4,886,584
Management fees to related parties 490,414
---------
Total Operating Costs and Expenses 5,376,998
---------
Other Operations, net
Equity in earnings of unconsolidated entities (155,289)
Rental operations 474,185
Valencia Water Company 0
Club operations (203,114)
Interest income 2,448
Interest expense (7,089,582)
Loss on debt restructuring 0
Loss on interest rate swap termination 0
Miscellaneous 216,719
---------
Total Other Operations, net (6,754,633)
-----------
Net Earnings (Loss) ($11,580,904)
===========
LandSource Communities Development, LLC
Consolidated Schedule of Cash Receipts and Disbursements
Month Ended September 30, 2008
Net Operating Cash Flow
Housing revenue $4,709,632
Commercial Revenue 2,402,077
Other 0
Option deposits 30,039
Less: Closing Costs 0
---------
Total Operating Inflows 7,141,748
Operating Cash Outflows
Master improvements & CFDs (9,411,076)
Property tax (69,996)
General & Administrative (1,326,479)
Other (228,086)
Management fees (466,667)
----------
Total Operating Outflows (11,502,304)
----------
Total Net Operating Cash Flow (4,360,556)
Bankruptcy Disbursements
Bankruptcy Payments
Utility Deposits 0
Mechanic's liens/Other 0
---------
Total Bankruptcy Payments 0
DIP Interest and Fees
DIP Facility interest (148,709)
Undrawn fee (78,661)
DIP Facility fees 0
-------
Total DIP Interest and Fees (227,370)
Restructuring professionals (2,801,700)
Total Bankruptcy Disbursements (3,029,070)
----------
Total Net Cash Flow ($7,389,625)
==========
Disbursement Per Debtor
LandSource Communities Development, LLC $1,108,790
California Land Company 0
Friendswood Development Company, LLC 13,444
Lennar Land Partners II 0
Kings Wood Development Company, L.C. 0
LSC Associates, LLC 0
Lennar Mare Island, LLC 393,776
LandSource Communities Development Sub, L 0
Lennar Moorpark, LLC 850
Lennar Stevenson Holdings, LLC 0
The Newhall Land and Farming Company 0
LandSource Holding Company, LLC 7,570,995
LNR-Lennar Washington Square, LLC 2,801,166
Lennar Bressi Ranch Venture, LLC 0
The Newhall Land and Farming Company 6,819,546
(a California Limited Partnership) 0
NWI-IL GP, LLC 0
Tournament Players Club at Valencia, LLC 400,821
Southwest Communities Development, LLC 0
Valencia Corporation 0
Stevenson Ranch Venture, LLC 36,795
Valencia Realty Company 0
-----------
Total Disbursement $19,146,183
===========
Schedule of Professional Fees and Expenses Paid
Professional
Cadwalader, Wickersham & Taft, LLP $1,253,866
FTI Consulting, Inc. 573,718
Paul, Weiss, Rifkind, Wharton & Garrison, 67,149
Houlihan Lokey 380,163
HoganWebb, LLC 340,000
D.L.D. Unsurance Brokers, Inc. 100,000
Landis Rath & Cobb, LLP 32,850
Developers Rsearch, Inc. 52,942
Orrick, Herrington & Sutcliffe, LLP 1,009
----------
$2,801,697
==========
About LandSource Communities
LandSource Communities Development LLC, which operates in Arizona,
California, Florida, New Jersey, Nevada and Texas, is involved in
the planning and development of master planned communities and
transforming undeveloped land into ready-to-build home sites and
commercial properties. With the exception of one development
project in Marina del Rey, California, LandSource does not build
homes or commercial properties.
LandSource and 20 of its affiliates filed for chapter 11
bankruptcy protection before the U.S. Bankruptcy Court for the
District of Delaware on June 8, 2008 (Lead Case No. 08-11111).
The Debtors are represented by Marcia Goldstein, Esq., at Weil
Gotshal & Manges in New York, and Mark D. Collins, Esq., at
Richards Layton & Finger in Wilmington, Delaware. Lazard Freres &
Co. acts as the Debtors' financial advisors, and Kurtzmann Carson
Consultants serves as the Debtors' notice and claims agent.
According to the Troubled Company Reporter on May 22, 2008,
LandSource sought help from its lender consortium to restructure
$1.24 billion of its debt. LandSource engaged a 100-bank lender
group led by Barclays Capital Inc., which syndicates LandSource's
debt. LandSource had received a default notice on that debt from
the lender group after it was not able to timely meet its payments
during mid-April. However, LandSource failed to reach an
agreement with its lenders on a plan to modify and restructure its
debt, forcing it to seek protection from creditors. (LandSource
Bankruptcy News, Issue No. 16; http://bankrupt.com/newsstand/or
215/945-7000).
LEXINGTON PRECISION: Posts $877,000 Net Loss in September 2008
--------------------------------------------------------------
Lexington Precision Corp. and Lexington Rubber Group, Inc., filed
with the U.S. Bankruptcy Court for the Southern District of New
York their monthly operating report for September 2008.
The Debtors reported total assets of $58,168,000 and total
liabilities of $100,340,000, resulting in a $42,659,000
stockholders' deficit.
For the month, the Debtors generated net sales of $5,478,000 and
incurred a net loss of $877,000.
A full-text copy of the Debtors' September 2008 monthly operating
report is available for free at:
http://bankrupt.com/misc/LEXINGTONMOR.pdf
About Lexington Precision
Headquartered in New York, Lexington Precision Corp.
-- http://www.lexingtonprecision.com/-- manufactures tight-
tolerance rubber and metal components for use in medical,
automotive, and industrial applications. As of Feb. 29, 2008, the
companies employed about 651 regular and 22 temporary personnel.
The company and its affiliate, Lexington Rubber Group Inc., filed
for Chapter 11 protection on April 1, 2008 (Bankr. S.D.N.Y. Lead
Case No.08-11153). Christopher J. Marcus, Esq., and Victoria
Vron, Esq., at Weil, Gotshal & Manges, represent the Debtors in
their restructuring efforts. The Debtors selected Epiq Systems -
Bankruptcy Solutions LLC as claims agent. The U.S. Trustee for
Region 2 appointed six creditors to serve on an Official Committee
of Unsecured Creditors. Paul N. Silverstein, Esq., and Jonathan
Levine, Esq., reresents the Committee as counsel.
When the Debtors filed for protection from their creditors, they
listed total assets of $52,730,000 and total debts of $88,705,000.
SEA CONTAINERS: Files Operating Report for September 2008
---------------------------------------------------------
Sea Containers, Ltd.
Unaudited Balance Sheet
As of September 30, 2008
Assets
Current Assets
Cash and cash equivalents $17,262,084
Trade receivables, less allowances
for doubtful accounts of $1.379MM 566,355
Due from related parties 374,918
Prepaid expenses and other current assets 352,657
------------
Total current assets 18,556,014
Fixed assets, net -
Long-term equipment sales receivable, net -
Investments in group companies 94,887,856
Intercompany receivables -
Investment in equity ownership interests 233,625,188
Other assets 2,521,770
------------
Total assets $349,590,828
============
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $13,196,060
Accrued expenses 96,338,670
Current portion of long-term debt 172,962,405
Current portion of senior notes 385,690,177
------------
Total current liabilities 668,187,312
Total shareholders' equity (318,596,484)
------------
Total liabilities and shareholders' equity $349,590,828
============
Sea Containers, Ltd.
Unaudited Statement of Operations
For the Month Ended September 30, 2008
Revenue $2,047,800
Costs and expenses:
Operating income -
Selling, general and admin. expenses (1,356,674)
Professional fees 2,995,285
(Charges)/credits against intercompany
accounts (3,663,832)
Impairment of investment in subsidiary
companies (10,000,000)
Forgiveness of intercompany debt -
Depreciation and amortization -
------------
Total costs and expenses (12,025,221)
------------
Profit/(Loss) on sale of assets (2,464)
------------
Operating loss (9,979,885)
Other income (expense)
Investment income 1,614,891
Foreign exchange gains/(losses) 219,717
Interest expense, net (3,654,958)
------------
Loss before taxes (11,800,235)
Income tax expense (209,267)
------------
Loss after taxes ($12,009,502)
============
Sea Containers Services, Ltd.
Unaudited Balance Sheet
As of September 30, 2008
Assets
Current Assets
Cash and cash equivalents $42,333
Trade receivables (2,269)
Due from related parties (GE SeaCo) 74,117
Prepaid expenses and other current assets 1,426,683
------------
Total current assets 1,540,864
Fixed assets, net 6,918
Investments 2,475,558
Intercompany receivables 4,034,489
Other assets -
------------
Total assets $8,057,829
============
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $981,767
Accrued expenses 1,220,838
Current portion of long-term debt 1,386,374
------------
Total current liabilities 3,588,979
Total shareholders' equity 4,468,850
------------
Total liabilities and shareholders' equity $8,057,829
============
Sea Containers Services, Ltd.
Unaudited Statement of Operations
For the Month Ended September 30, 2008
Revenue $1,200,836
Costs and expenses:
Selling, general and admin. expenses (735,023)
Professional Fees (9,338,099)
Depreciation and amortization (1,522)
------------
Total costs and expenses (10,074,644)
------------
Gains on sale of assets 8,788
------------
Operating profit/(loss) (8,865,021)
Other income (expense)
Interest income -
Foreign exchange gains or (losses) 3,768
Interest expense, net (13,090)
------------
Profit/(Loss) before taxes (8,874,342)
Income tax credit -
------------
Net profit/(loss) ($8,874,342)
============
About Sea Containers Ltd.
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S. Sea
Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers disclosed
total assets of $62,400,718 and total liabilities of
$1,545,384,083.
(Sea Containers Bankruptcy News, Issue No. 54; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
TROPICANA ENTERTAINMENT: Posts $16 Million Net Loss in September
----------------------------------------------------------------
Tropicana Entertainment, LLC
Balance Sheet
As of September 30, 2008
ASSETS
Current Assets
Accounts receivable - trade $0
Cash & temporary cash investments 13,323,000
Deposits 2,461,000
Inventories 0
Other receivables 0
Prepaid expenses 73,000
--------------
Total Current Assets 15,857,000
Property and Equipment
Buildings 0
Construction in progress 0
Furniture & fixtures 114,000
Land 0
Riverboats, barges & ramps 0
Vehicles 0
--------------
Total Property and Equipment 114,000
Reserve for Depreciation
Boats, barges & ramp reserve for depreciation 0
Building reserve for depreciation 0
Furn. & fixtures reserve for depreciation 0
Gaming entertainment reserve for depreciation 0
Vehicle reserve for depreciation 0
--------------
Total Reserve for Depreciation 0
Other Assets
Investments 2,775,215,000
Other assets 31,190,000
--------------
Total Other Assets 2,806,405,000
--------------
TOTAL ASSETS $2,822,376,000
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities
Accounts payable $16,460,000
Accrued other expenses 1,686,000
Accrued payroll 111,000
Deferred income 0
Notes payable - Evansville 11,900,000
Payroll taxes payable 0
Sales tax payable 0
--------------
Total Current Liabilities 30,157,000
Long Term Debt Due Beyond One Year
DIP financing 20,000,000
--------------
Total Long Term Debt Due Beyond One Year 20,000,000
Other Liabilities
Deferred fed taxes 0
Deferred rent 0
Deferred state inc taxes 0
Intercompany 43,072,000
--------------
Total Other Liabilities 43,072,000
Total Liabilities not Subject to Compromise 93,228,000
Liabilities Subject to Compromise
Non-intercompany 913,355,000
Intercompany 1,593,200,000
--------------
Total Liabilities Subject to Compromise 2,506,555,000
--------------
Total Liabilities 2,599,783,000
Total Stockholders' Equity 222,592,000
--------------
Total Liabilities & Shareholders' Deficit $2,822,376,000
==============
Tropicana Entertainment, LLC
Income Statement
For the Month Ended September 30, 2008
Operating Revenues
Casino revenue $0
Rooms revenue 0
Food & beverage revenue 0
Other casino & hotel revenue - less int income 0
--------------
Opening Revenues 0
Less promotional allowances 0
--------------
Net Operating Revenues 0
Operating Expenses
Casino operating expenses 0
Rooms operating expenses 0
Food and beverage operating expenses 0
Other casino and hotel operating expenses (14,000)
Utilities 0
Marketing, advertising and casino promotions 21,000
Repairs and maintenance 10,000
Insurance 6,000
Property and local taxes 0
Gaming tax and licenses 0
Administrative and general 2,084,000
Leased land and facilities 17,000
Depreciation and amortization 0
Loss on disposition of assets 0
Bad debt expense - loans 0
Impairment charge 0
Restructuring cost (150,000)
Chapter 11 reorg. & other prof. fees 3,776,000
--------------
Total Operating Expense 5,749,000
Income from Operations (5,749,000)
Other Income (Expense)
Interest expense (10,214,000)
Intercompany interest income / (expense) 42,000
Interest income (55,000)
--------------
Total Other Income (Expense) (10,227,000)
Federal Income Tax 0
Income Before Minority Interest (15,976,000)
--------------
NET INCOME ($15,976,000)
About Tropicana Entertainment
Based in Crestview Hills, Kentucky, Tropicana Entertainment LLC --
http://www.tropicanacasinos.com/-- is an indirect subsidiary of
Tropicana Casinos and Resorts. The company is one of the largest
privately-held gaming entertainment providers in the United
States. Tropicana Entertainment owns eleven casino properties in
eight distinct gaming markets with premier properties in Las
Vegas, Nevada and Atlantic City, New Jersey.
Tropicana Entertainment LLC filed for Chapter 11 protection on
May 5, 2008, (Bankr. D. Del. Case No. 08-10856). Its debtor-
affiliates filed for separate Chapter 11 petitions but with no
case numbers assigned yet. Kirkland & Ellis LLP and Mark D.
Collins, Esq., at Richards Layton & Finger, represent the Debtors
in their restructuring efforts. Their financial advisor is Lazard
Ltd. Their notice, claims, and balloting agent is Kurtzman Carson
Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors'
Web site administration agent. AlixPartners LLP is the Debtors'
restructuring advisor.
Stroock & Stroock & Lavan LLP and Morris Nichols Arsht & Tunnell
LLP represent the Official Committee of Unsecured Creditors in
this case. Capstone Advisory Group LLC is financial advisor to
the Creditors' Committee.
The Court has extended the Debtors' exclusive period to file a
plan through and including January 12, 2009, and to solicit votes
on the plan through and including March 13, 2009.
(Tropicana Bankruptcy News, Issue No. 21; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
WASHINGTON MUTUAL: Files Initial Monthly Operating Report
---------------------------------------------------------
Washington Mutual, Inc., and WMI Investment Corporation filed
with the Court on Oct. 30, 2008, an initial monthly operating
report.
The Initial Report incorporated a 13-week cash flow forecast for
the period from October 31, 2008, through January 23, 2009.
For the 13-week period ending January 2009, the Debtors estimate:
-- receipts to total $6.06 million;
-- disbursements to aggregate $30.94 million;
-- a negative net cash flow of $24.87 million; and
-- ending cash and securities balance to total $4.6 billion.
A full-text copy of the 13-Week Consolidated Cash Flow is
available for free:
http://bankrupt.com/misc/WAMU_ConsolidatedCashFlow.pdf
WaMu Chief Restructuring Officer William C. Kosturos notes that a
$4 million disbursement within the week of Nov. 7, 2008, refers to
an estimate for the premium of the Debtors' Directors and Officers
Policy.
According to Mr. Kosturos, all forecasted amounts are highly
preliminary due to hiring of additional WaMu employees, the
relationship between WaMu and JPMorgan Chase, N.A., and other
circumstances regarding the Debtors' ongoing operations.
Other key assumptions in the forecast are:
* The interest is based on a 0.8% annual interest rate on
investable funds;
* Payroll and benefits assume that WaMu will be successfully
hiring 15 to 20 full-time employees in the near term;
* Rent is based on the current allocation of expenses between
WaMu and Washington Mutual Bank's former banking operations,
while the actual determinaton of charges with respect to
WaMu's occupancy is to be determined;
* Shared services to be provided by JPMorgan Chase and the
costs of the services are being determined;
* The estimate of professional fees is highly preliminary;
* Information Technology infrastructure costs will depend on
the shared services provided by JPMorgan Chase and WaMu's
need to develop its own infrastructure.
The Initial Report also disclose demand deposit accounts the
Debtors maintained:
(i) JPMorgan Chase Bank
WM Tower Financial Center
1201 3rd Avenue
Seattle, Washington 98101-3029
(ii) Bank of New York Mellon
101 Barclay Street
New York, NY 10286
General account and ZBA disbursement account are also maintained
by the Debtors at the Bank of America.
Based in Seattle, Washington, Washington Mutual Inc. --
http://www.wamu.com/-- is a holding company for Washington Mutual
Bank as well as numerous non-bank subsidiaries. The company
operates in four segments: the Retail Banking Group, which
operates a retail bank network of 2,257 stores in California,
Florida, Texas, New York, Washington, Illinois, Oregon, New
Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and
Connecticut; the Card Services Group, which operates a nationwide
credit card lending business; the Commercial Group, which conducts
a multi-family and commercial real estate lending business in
selected markets, and the Home Loans Group, which engages in
nationwide single-family residential real estate lending,
servicing and capital markets activities.
Washington Mutual Bank was taken over Sept. 25 by U.S. government
regulators. The next day, WaMu and its debtor-affiliate, WMI
Investment Corp., filed separate petitions for Chapter 11 relief
(Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns
100% of the equity in WMI Investment. Weil Gotshal & Manges
represents the Debtors as counsel. When WaMu filed for protection
from its creditors, it listed assets of $32,896,605,516 and debts
of $8,167,022,695. WMI Investment listed assets of $500,000,000
to $1,000,000,000 with zero debts.
(Washington Mutual Bankruptcy News, Issue No. 6; 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'
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Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
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Don't be fooled. Assets, for example, reported at historical cost
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delivered to nation's bankruptcy courts. The list includes links
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Each Friday's edition of the TCR includes a review about a book of
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Monthly Operating Reports are summarized in every Saturday edition
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For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911. For
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of Delaware, contact Ken Troubh at Nationwide Research &
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*********
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
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USA. Luke Caballos, Sheryl Joy P. Olano, Ronald C. Sy, Joel
Anthony G. Lopez, Cecil R. Villacampa, Carlo Fernandez,
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Copyright 2008. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***