/raid1/www/Hosts/bankrupt/TCR_Public/090103.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, January 3, 2009, Vol. 13, No. 2
Headlines
ASARCO LLC: Files Monthly Operating Report -- November 30, 2008
ATHEROGENICS: Posts $1,548,341 Net Loss From Oct. 15 to Oct. 31
ATHEROGENICS INC: Posts $1,243,674 Net Loss in November 2008
CADENCE INNOVATION: Monthly Operating Report -- November 30, 2008
FRONTIER AIRLINES: Files Monthly Operating Report -- Nov. 30, 2008
INTERMET CORP: Files Monthly Operating Report for November 2008
JEVIC TRANSPORTATION: Posts $296,469 Net Loss in September 2008
MICROISLET INC: Posts $369,151 Net Loss in November 2008
NEWPOWER HOLDINGS: Files Operating Report for November 2008
QUEBECOR WORLD: Files Monthly Operating Report -- Nov. 29, 2008
SEA CONTAINERS: Debtors' Monthly Operating Report -- Oct. 31, 2008
WELLMAN INC: Monthly Operating Report -- Ended October 31, 2008
WELLMAN INC: Monthly Operating Report -- Ended November 30, 2008
*********
ASARCO LLC: Files Monthly Operating Report -- November 30, 2008
---------------------------------------------------------------
ASARCO LLC, et al.
Balance Sheet
As of November 30, 2008
ASSETS
Current Assets:
Cash $1,319,763,000
Restricted Cash 25,091,000
Accounts receivable, net 129,709,000
Inventory 226,458,000
Prepaid expenses 3,378,000
Other current assets 17,361,000
---------------
Total Current Assets 1,721,759,000
Net property, plant and equipment 507,288,000
Other Assets:
Investments in subs 82,374,000
Advances to affiliates 763,000
Prepaid pension & retirement plan -
Non-current deferred tax asset -
Other 43,801,000
---------------
Total assets $2,355,984,000
===============
LIABILITIES
Postpetition liabilities: 66,704,000
Accrued liabilities 708,024,000
---------------
Total postpetition liabilities 774,728,000
Prepetition liabilities:
Not subject to compromise - credit 2,927,000
Not subject to compromise - other 107,733,000
Advances from affiliates 24,714,000
Subject to compromise 3,168,703,000
---------------
Total prepetition liabilities 3,304,078,000
---------------
Total liabilities 4,078,807,000
===============
OWNERS' EQUITY (DEFICIT)
Common stock 508,324,000
Additional paid-in capital 104,578,000
Other comprehensive loss (234,516,000)
Retained earnings: post filing date (3,251,247,000)
---------------
Total prepetition owners' equity (2,872,861,000)
Retained earnings: post-filing date 1,150,038,000
---------------
Total owners' equity (net worth) (1,722,822,000)
Total liabilities and owners' equity $2,355,984,000
===============
ASARCO LLC, et al.
Consolidated Statement of Operations
Month Ended November 30, 2008
Sales $67,523,000
Cost of products and services 81,117,000
---------------
Gross profit [loss] (13,595,000)
Operating expenses:
Selling and general & admin. expenses 2,300,000
Depreciation & amortization 3,513,000
Accretion expense 94,000
---------------
Operating income [loss] (19,502,000)
Interest expense 114,000
Interest income (928,000)
Reorganization expenses 4,510,000
Other miscellaneous (income) expenses (5,629,000)
---------------
Income (loss) before taxes (17,569,000)
Income taxes (7,903,000)
---------------
Net income [loss] ($9,666,000)
===============
ASARCO LLC, et al.
Consolidated Cash Receipts & Disbursements
Month Ended November 30, 2008
Receipts
Disbursements:
Inventory material $16,310,000
Operating disbursements 36,321,000
Capital expenditures 8,214,000
---------------
Total disbursements 60,846,000
Operating cash flow 48,348,000
Reorganization disbursements 5,284,000
---------------
Net cash flow 43,064,000
Net payments to secured Lenders 0
---------------
Net change in cash 43,064,000
Beginning cash balance 1,301,789,000
---------------
Ending cash balances $1,344,854,000
===============
About ASARCO LLC
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 US$600 million in total assets and
US$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. Stutzman,
Bromberg, Esserman & Plifka, APC, represents the Official
Committee of Unsecured Creditors for the Asbestos Debtors.
Former judge Robert C. Pate was appointed as the future claims
representative. Details about their asbestos-driven Chapter 11
filings have appeared in the Troubled Company Reporter since
April 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).
Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta
Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining &
Development Co., Ltd., Peru Mining Exploration & Development Co.,
and Green Hill Cleveland Mining Co. filed for Chapter 11
protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197
to 08-20202).
The Debtors submitted to the Court a joint plan of reorganization
and disclosure statement on July 31, 2008. The plan incorporates
the sale of substantially all of the Debtors' assets to Sterlite
Industries Ltd. for US$2,600,000,000.
(ASARCO Bankruptcy News, Issue No. 94; Bankruptcy Creditors'
Service, Inc., <http://bankrupt.com/newsstand/>or 215/945-7000).
ATHEROGENICS: Posts $1,548,341 Net Loss From Oct. 15 to Oct. 31
---------------------------------------------------------------
AtheroGenics, Inc., filed with the U.S. Bankruptcy Court for the
Northern District of Georgia on Nov. 20, 2008, its monthly
operating report for the period from Oct. 15, 2008, to Oct. 31,
2008.
The company reported a net loss of $1,548,341 for the period from
Oct. 15, 2008, to Oct. 31, 2008. The company generated zero
revenues for the period.
At Oct. 31, 2008, the company had $54,381,912 in total assets,
$765,633 in total current liabilities not subject to compromise,
$306,337,734 in prepetition liabilities, and $252,721,455 in
stockholders' deficit.
A full-text copy of the company's monthly operating report for the
period from Oct. 15, 2008, to Oct. 31, 2008, is available for free
at http://researcharchives.com/t/s?3715
Based in Alpharetta, Georgia, AtheroGenics, Inc. --
http://www.atherogenics.com/-- is a research-based
pharmaceutical company focused on the discovery, development and
commercialization of drugs for the treatment of chronic
inflammatory diseases, including diabetes and coronary heart
disease. It has one late stage clinical drug development
program.
On Sept. 15, 2008, five creditors holding claims totalling
$20,413,000 pursuant to the company's 4.5% Convertible Notes Due
2008 filed an involuntary Chapter 7 petition against the Debtor
(Bankr. N.D. Georgia Case No. 08-78200). The petitioning
noteholders were:
-- AQR Absolute Return Master Account, L.P.;
-- CNH CA Master Account, L.P.;
-- Tamalpais Global Partner Master Fund, LTD;
-- Tang Capital Partners, LP; and
-- Zazove High Yield Convertible Securities Fund, L.P.
On Oct. 6, the Debtor filed its consent to entry for order for
relief and motion to convert its Chapter 7 case to one under
Chapter 11 (Bankr. N.D. Ga. Case No. 08-78200).
AtheroGenics currently contemplates that its non-cash assets will
be sold in the Chapter 11 proceeding, either through a motion
under Section 363 of the Bankruptcy Code or through confirmation
of a plan pursuant to Section 1129 of the Bankruptcy Code, and
that the then-remaining cash assets together with the net proceeds
generated through the sale of the non-cash assets will be
distributed to its stakeholders, including its creditors. Due to
the constraints imposed on AtheroGenics by the Chapter 11
Proceeding, AtheroGenics does not anticipate pursuing any clinical
trials or other development activities relating to AGI-1067 or its
other products during the course of the Chapter 11 Proceeding.
The company reported a $29,789,408 net loss for the three months
ended Sept. 30, 2008, on $0 in total revenues. As of Sept. 30,
2008, AtheroGenics had roughly $302.4 million of 2008 Notes, 4.5%
Convertible Notes due 2011 and 1.5% Convertible Notes due
outstanding and cash and cash equivalents of $52.7 million. Under
the priority scheme established by the Bankruptcy Code, as a
general rule, AtheroGenics' creditors will be entitled to receive
any proceeds generated through the sale of AtheroGenics' non-cash
assets before shareholders are entitled to receive any proceeds.
The ultimate recovery by creditors and shareholders, if any, will
not be determined until confirmation and implementation of a plan
of liquidation. No assurance can be given as to what recoveries,
if any, will be assigned in the Chapter 11 Proceeding to each of
these constituencies. A plan of liquidation could result in
AtheroGenics' shareholders receiving no value for their interests
and holders of unsecured debt, including trade debt, receiving
less, and potentially substantially less, than payment in full for
their claims. Because of such possibilities, the value of the
common stock and unsecured debt is highly speculative.
Accordingly, AtheroGenics urges that appropriate caution be
exercised with respect to existing and future investments in any
of these securities.
ATHEROGENICS INC: Posts $1,243,674 Net Loss in November 2008
------------------------------------------------------------
AtheroGenics, Inc., filed with the U.S. Bankruptcy Court for the
Northern District of Georgia on Dec. 18, 2008, its monthly
operating report for the month ended Nov. 30, 2008.
The company reported a net loss of $1,243,674 for the month ended
Nov. 30, 2008. The company generated zero revenues for the
period.
At Oct. 31, 2008, the company had $53,153,567 in total assets,
$452,075 in total current liabilities not subject to compromise,
$306,666,622 in prepetition liabilities, and $253,965,130 in
stockholders' deficit.
A full-text copy of the company's monthly operating report for the
month ended Nov. 30, 2008, is available for free at:
http://researcharchives.com/t/s?3716
Based in Alpharetta, Georgia, AtheroGenics, Inc. --
http://www.atherogenics.com/-- is a research-based
pharmaceutical company focused on the discovery, development and
commercialization of drugs for the treatment of chronic
inflammatory diseases, including diabetes and coronary heart
disease. It has one late stage clinical drug development
program.
On Sept. 15, 2008, five creditors holding claims totalling
$20,413,000 pursuant to the company's 4.5% Convertible Notes Due
2008 filed an involuntary Chapter 7 petition against the Debtor
(Bankr. N.D. Georgia Case No. 08-78200). The petitioning
noteholders were:
-- AQR Absolute Return Master Account, L.P.;
-- CNH CA Master Account, L.P.;
-- Tamalpais Global Partner Master Fund, LTD;
-- Tang Capital Partners, LP; and
-- Zazove High Yield Convertible Securities Fund, L.P.
On Oct. 6, the Debtor filed its consent to entry for order for
relief and motion to convert its Chapter 7 case to one under
Chapter 11 (Bankr. N.D. Ga. Case No. 08-78200).
AtheroGenics currently contemplates that its non-cash assets will
be sold in the Chapter 11 proceeding, either through a motion
under Section 363 of the Bankruptcy Code or through confirmation
of a plan pursuant to Section 1129 of the Bankruptcy Code, and
that the then-remaining cash assets together with the net proceeds
generated through the sale of the non-cash assets will be
distributed to its stakeholders, including its creditors. Due to
the constraints imposed on AtheroGenics by the Chapter 11
Proceeding, AtheroGenics does not anticipate pursuing any clinical
trials or other development activities relating to AGI-1067 or its
other products during the course of the Chapter 11 Proceeding.
The company reported a $29,789,408 net loss for the three months
ended Sept. 30, 2008, on $0 in total revenues. As of Sept. 30,
2008, AtheroGenics had roughly $302.4 million of 2008 Notes, 4.5%
Convertible Notes due 2011 and 1.5% Convertible Notes due
outstanding and cash and cash equivalents of $52.7 million. Under
the priority scheme established by the Bankruptcy Code, as a
general rule, AtheroGenics' creditors will be entitled to receive
any proceeds generated through the sale of AtheroGenics' non-cash
assets before shareholders are entitled to receive any proceeds.
The ultimate recovery by creditors and shareholders, if any, will
not be determined until confirmation and implementation of a plan
of liquidation. No assurance can be given as to what recoveries,
if any, will be assigned in the Chapter 11 Proceeding to each of
these constituencies. A plan of liquidation could result in
AtheroGenics' shareholders receiving no value for their interests
and holders of unsecured debt, including trade debt, receiving
less, and potentially substantially less, than payment in full for
their claims. Because of such possibilities, the value of the
common stock and unsecured debt is highly speculative.
Accordingly, AtheroGenics urges that appropriate caution be
exercised with respect to existing and future investments in any
of these securities.
CADENCE INNOVATION: Monthly Operating Report -- November 30, 2008
-----------------------------------------------------------------
Cadence Innovation LLC
Unaudited Balance Sheet
As of November 30, 2008
ASSETS:
Cash $677
Accounts Receivable, Net 24,263
Manufacturing Inventories, Net 13,627
Tooling Inventories, Net 5,260
I/C Receivable/Payable (52,997)
Prepaid Expenses and other current assets 2,681
Professional Retainers 1,440
Assets held for Sale 3,700
------------
Total current assets ($1,349)
------------
Property, Plant & Equipment
Capital Leases 1,809
Land 10,121
Building and Improvements 26,499
Machinery & Equipment 61,699
Office & Transportation Equipment 4,239
Construction-in-Progress 2,680
------------
Total Property, Plant and Equipment 107,047
Accumulated Depreciation (21,625)
------------
Net Property, Plant and Equipment 85,421
------------
Loans to Insiders -
Intangible Assets, Net 490
Other Non-current Assets 3,587
------------
TOTAL ASSETS 88,149
============
LIABILITIES:
Postpetition Liabilities: -
Accounts Payable (11,353)
Accrued Accounts Payable 15,213
Accrued Wages 1,249
Accrued Taxes-Payroll 407
Accrued Fringe Benefits 3,619
Accrued Taxes-Property 4
Accrued Severance -
Amounts due to Insiders -
------------
Total Postpetition Liabilities 9,139
Prepetition Liabilities:
Secured Debt 11,659
Priority Debt -
Unsecured Debt 109,854
------------
Total Prepetition Liabilities 121,513
------------
EQUITY:
Owners Capital 302,123
Retained Earnings - Prepetition (340,500)
Retained Earnings - Postpetition (4,126)
------------
TOTAL LIABILITIES AND EQUITY $88,149
============
Cadence Innovation LLC
Unaudited Operating Statement
Month Ended November 30, 2008
Total Revenue/Sales $23,515
Cost of Sales 19,394
------------
Gross Profit 4,121
Expenses:
Advertising -
Auto and Truck Expense -
Bad Debts -
Contributions -
Employee Benefit Programs 1,269
Insider Compensation 115
Insurance 71
Management Bonuses -
Office Expenses -
Pension and Profit Sharing Plans -
Professional Fees - Non Bankruptcy 198
Repairs and Maintenance 49
Rent and Lease Expense 556
Salaries/Commissions/Fees 1,044
Supplies, Office Expense, etc 15
Taxes-Payroll 228
Taxes-Real Estate 217
Taxes-Other -
Travel and Entertainment 31
Utilities 141
Other (388)
------------
Total Expenses 3,546
Depreciation 834
------------
Net Profit (Loss) (258)
Other Income -
Interest Expense 525
Gain/Loss from discontinued operations 20
Intercompany transfers -
------------
Net Profit (Loss) before reorganization items (804)
Reorganization items -
Professional Items 2,198
Trustee Fees 10
Interest earned on accumulated cash -
------------
Total Reorganization Expenses -
Income Taxes 2,208
------------
NET INCOME (LOSS) ($3,012)
============
Cadence Innovation LLC
Schedule of Cash Receipts and Disbursements
For the month ended November 30, 2008
Cash - Beginning of Month $1,661
Receipts:
Cash Sales -
Accounts Receivable 23,676
Loans and Advances (1,474)
Sale of Assets -
Other -
------------
Total Receipts 22,202
------------
Disbursements:
Net Payroll 3,314
Contract Labor 966
Payroll Taxes 1,300
Sales, Use and other Taxes -
Inventory Purchases 13,695
Capital Expenditures - Machinery & Equipment 69
Employee Expenses 55
Insurance 31
Rent and Leases 612
Purchased Services 772
Utilities 783
Tooling 685
Other 50
Operating and Maintenance Supplies 352
Owner Draw -
Legal and Professional Fees 124
Bank Charges 360
Board of Director fees -
U.S. Trustee quarterly fees -
Court costs 18
------------
Total Disbursements 23,186
------------
Net Cash Flow (984)
------------
Cash - End of Month $677
============
New Venture Real Estate Holdings LLC
Unaudited Balance Sheet
As of November 30, 2008
ASSETS:
Cash -
Accounts Receivable -
Manufacturing Inventories -
Tooling Inventories -
IC Receivable Payable $40,768
Prepaid Expenses and other current assets -
Professional Retainers -
Assets Held for Sale -
------------
Total Current Assets 40,768
Property, Plant and Equipment
Capital Leases -
Land -
Building and Improvements -
Machinery & Equipment -
Office & Transportation Equipment -
Construction-in-Progress -
-------------
Total Property, Plant & Equipment -
Accumulated Depreciation -
-------------
Net Property, Plant & Equipment -
-------------
Loans to Insiders -
Intangible Assets, Net -
Other Non-Current Assets -
--------------
TOTAL ASSETS $40,768
==============
LIABILITIES:
Postpetition Liabilities:
Accounts Payable -
Accrued Accounts Payable -
Accrued Wages -
Accrued Taxes - Payroll -
Accrued Fringe Benefits -
Accrued Taxes - Property and Sales and Use -
Accrued Severance -
Amounts due to Insiders -
------------
Total Postpetition Liabilities -
Prepetition Liabilities:
Secured Debt -
Priority Debt -
Unsecured Debt -
--------------
Total Prepetition Liabilities -
--------------
EQUITY:
Owners Capital -
Retained Earnings - Prepetition 40,768
Retained Earnings - Postpetition -
--------------
TOTAL LIABILITIES AND EQUITY $40,768
==============
About Cadence Innovation
Headquartered in Troy, Michigan, Cadence Innovation LLC --
http://www.cadenceinnovation.com/-- manufactures and sells auto
parts to its customers GM and Chrysler. The company has at least
4,200 employees in the United States and Europe, including Hungary
and Czech Republic. The company and its debtor-affiliate, New
Venture Real Estate Holdings, LLC, filed for Chapter 11
reorganization on Aug. 26, 2008 (Bankr. D. Del. Lead Case No. 08-
11973). Norman L. Pernick, Esq. and Patrick J. Reilley, Esq., at
Cole, Schotz, Meisel, Forman & Leonard, represent the Debtors as
counsel. When the Debtors filed for protection from their
creditors, they listed assets of between $10 million and
$50 million, and debts of between $100 million and $500 million.
(Cadence Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
FRONTIER AIRLINES: Files Monthly Operating Report -- Nov. 30, 2008
------------------------------------------------------------------
Frontier Airlines Holdings, Inc., filed its monthly operating
report for November 2008. Frontier reported a consolidated net
profit of $2.9 million and an operating profit of $2.5 million for
the month. Included in Frontier's operating profit were non-cash
mark-to-market losses on fuel hedge contracts of $2.0 million.
Frontier's November results also included:
* A loss of $2.4 million in cash settlements from fuel
hedging contracts.
* A book gain of $4.0 million on the sale of two A319
aircraft sold in the month included in reorganizational
items, offset by other reorganizational expenses of
$1.2 million.
Frontier's cash position increased to $53.4 million for
November 2008. The Company realized net proceeds of
$15.9 million from the sale of two aircraft which was offset by a
$9.7 million net increase in holdbacks from the Company's credit
card processors and $1.8 million of additional net deposits in
collateral posted to fuel hedge counterparties.
November's cash balance does not include the proceeds from two
aircraft sales that Frontier completed in December 2008. "We are
now seeing the changes we have made in our Company over the last
year start to pay dividends," said Frontier President and CEO Sean
Menke. "We are successfully controlling our costs, increasing
revenue and managing our cash. We feel very comfortable with our
restructuring efforts moving ahead and look forward to more
positive results in the future."
A full-text copy of the Monthly Operating Report is available for
free at:
FrontierAirlines.com/frontier/who-we-are/investorrelations/annual-
reports-sec-filings.do
FRONTIER AIRLINES HOLDINGS, INC., ET AL.
Unaudited Condensed Consolidated Balance Sheet
As of November 30, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $53,414,000
Short-term investments 3,740,000
Restricted investments 126,644,000
Receivables, net of an allowance for
doubtful accounts 39,694,000
Prepaid expenses and other assets 22,886,000
Inventories, net of allowance 13,253,000
Assets held for sale 743,000
--------------
Total current assets 260,374,000
Property and other equipment, net 665,904,000
Security and other deposits 42,254,000
Aircraft pre-delivery payments 3,497,000
Restricted investments 2,987,000
Deferred loan expenses and other assets 6,059,000
--------------
Total Assets $981,075,000
==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities not subject to compromise:
CURRENT LIABILITIES:
Accounts payable $42,691,000
Air traffic liability 167,047,000
Other accrued expenses 61,798,000
Income tax payable 1,038,000
Deferred revenue & other current liabilities 29,732,000
PDP financing 0
DIP financing 30,000,000
--------------
Total current liabilities not subject
to compromise 332,306,000
Other long-term debt -- postpetition 3,000,000
Deferred revenue and other liabilities 21,355,000
--------------
Total liabilities not subject to compromise 356,661,000
Liabilities subject to compromise 576,383,000
--------------
Total Liabilities 933,044,000
STOCKHOLDERS' EQUITY
Preferred stock -
Common stock 37,000
Additional paid-in capital 196,594,000
Unearned ESOP shares (69,000)
Other comprehensive loss -
Accumulated deficit (148,531,000)
--------------
Total Stockholders' Equity 48,031,000
--------------
Total Liabilities and Stockholders' Equity $981,075,000
==============
FRONTIER AIRLINES HOLDINGS, INC., ET AL
Unaudited Condensed Consolidated Statement of Operations
Month Ended November 30, 2008
Revenues:
Passenger $87,873,000
Cargo 548,000
Other 5,978,000
--------------
Total revenues 94,399,000
Operating expenses:
Flight operations 12,196,000
Aircraft fuel 34,667,000
Aircraft lease 9,627,000
Aircraft and traffic servicing 14,075,000
Maintenance 7,324,000
Promotion and sales 6,708,000
General and administrative 4,057,000
Operating expenses -- regional partner -
Loss (gain) on sales of assets, net (18,000)
Employee separation and other charges -
Depreciation 3,256,000
--------------
Total operating expenses 91,892,000
--------------
Operating loss 2,507,000
Non-operating income (expense):
Interest income 300,000
Interest expense (2,756,000)
Loss from early extinguishment of debt (124,000)
Other, net (124,000)
--------------
Total non-operating expense, net (2,704,000)
Loss before reorganization items & income tax (197,000)
Losses on reorganization items (2,775,000)
Income tax benefit (337,000)
--------------
Net Income (Loss) $2,915,000
==============
FRONTIER AIRLINES HOLDINGS, INC., ET AL.
Unaudited Condensed Consolidated Statement of Cash Flow
Month Ended November 30, 2008
Cash flows from operating activities:
Net Loss $2,915,000
Adjustments to reconcile net loss to net cash
used in operating activities:
ESOP and stock option compensation expense 157,000
Depreciation and amortization 3,603,000
Assets beyond economic repair 141,000
Mark to market losses on derivative contracts 4,366,000
Proceeds received for settled
derivative contracts (2,404,000)
Loss (Gain) on disposal of equipment
and other assets, net (18,000)
Loss on early extinguishment of debt 124,000
Unrealized loss on short-term investments -
Changes in operating assets and liabilities:
Restricted investments (9,735,000)
Receivables 5,271,000
Security and other deposits (1,718,000)
Prepaid expenses and other assets 2,666,000
Inventories 4,175,000
Other assets -
Accounts payable (941,000)
Air traffic liability (18,301,000)
Other accrued expenses (3,295,000)
Deferred revenue and other liabilities 1,301,000
Reorganization items (2,775,000)
--------------
Net cash used in operating activities (14,468,000)
Cash flows from reorganization activities
Net cash provided by reorganization activities 262,000
--------------
Total net cash used in operating activities (14,206,000)
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 61,000
Capital expenditures (1,424,000)
Proceeds from the sale of aircraft --
reorganization activity 55,000,000
--------------
Net cash provided by investing activities 53,637,000
Cash flows from financing activities:
Proceeds from DIP financing (postpetition) -
Extinguishment of long-term borrowings -
Principal payments on long-term borrowings (1,727,000)
Extinguishment of long-term borrowings --
reorganization activity (36,381,000)
Principal payments on short-term borrowing -
Payment of financing fees -
--------------
Net cash used in financing activities (38,108,000)
Increase in cash and cash equivalents 1,323,000
Cash and cash equivalents at beginning of period 52,091,000
--------------
Cash and cash equivalents at end of period $53,414,000
==============
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. 29; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
INTERMET CORP: Files Monthly Operating Report for November 2008
---------------------------------------------------------------
Intermet Corp. and its debtor-affiliates filed with the U.S.
Bankruptcy Court for the District of Delaware on Dec. 23, 2008,
their monthly operating report for the month ended Nov. 30, 2008.
At Nov. 30, 2008, Intermet had total assets of $665,440,341, total
liabilities of $289,250,870, and total shareholders' equity of
$376,189,471.
A full-text copy of Intermet and its debtor-affiliates' monthly
operating report for the month ended Nov. 30, 2008, is available
for free at:
http://bankrupt.com/misc/IntermetCorp.NovemberOperatingReport.pdf
About Intermet Corp.
Based in Fort Worth, Texas, Intermet Corp. designs and
manufactures machine precision iron and aluminum castings for the
automotive and industrial markets. The company and its debtor-
affiliates filed for chapter 11 protection on Aug. 12, 2008
(D. Del. Case Nos. 08-11859 to 08-11866 and 08-11868 to 08-11878).
Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Michael E.
Comerford, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New
York, serve as the Debtors' counsel. James E. O'Neill, Esq.,
Laura Davis Jones, Esq. and Timothy P. Cairns, Esq., at Pachulski
Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the
Debtors' co-counsel. Kurtzman Carson Consultants LLC serves as
the Debtors' claims, notice and balloting agent. An Official
Committee of Unsecured Creditors has been formed in this case.
When the Debtors filed for protection from their creditors, they
listed assets of between $50 million and $100 million and debts of
between $100 million and $500 million.
This is the Debtors' second bankruptcy filing. Intermet Corp.,
along with its debtor-affiliates, filed for Chapter 11 protection
on Sept. 29, 2004 (Bankr. E.D. Mich. Case Nos. 04-67597 through
04-67614). Salvatore A. Barbatano, Esq., at Foley & Lardner LLP,
represents the Debtors. In their previous bankruptcy filing, they
listed $735,821,000 in total assets and $592,816,000 in total
debts. Intermet Corporation emerged from this first bankruptcy
filing in November 2005.
JEVIC TRANSPORTATION: Posts $296,469 Net Loss in September 2008
---------------------------------------------------------------
Jevic Transportation, Inc., filed with the U.S. Bankruptcy Court
for the District of Delaware on Nov. 20, 2008, its monthly
operating report for the month ended Sept. 30, 2008.
The company reported a net loss of $296,469 on $0 revenues for the
month of September 2008.
At Sept. 30, 2008, the company had total assets of $28,934,350,
total liabilities of $36,188,467, and stockholders' deficit of
$7,254,117.
A full-text copy of the company's monthly operating report for the
month ended Sept. 30, 2008, is available for free at:
http://bankrupt.com/misc/Jevic_SeptemberOperatingReport.pdf
Based in Delanco, New Jersey, Jevic Transportation Inc. --
http://www.jevic.com/-- provides trucking services. The company
has two units: Jevic Holding Corp. and Creek Road Properties.
Neither of the units have assets nor operations. The company and
its affiliates filed for chapter 11 protection on May 20, 2008
(Bankr. D. Del. Case No. 08-11008). Domenic E. Pacitti, Esq., and
Michael W. Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg &
Ellers, in Wilmington, Delaware, represent Jevic Transportation.
The U.S. Trustee for Region 3 has appointed five creditors to
serve on an Official Committee of Unsecured Creditors. Robert J.
Feinstein, Esq., Bruce Grohsgal, Esq., and Maria A. Bove, Esq., at
Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware,
represent the Official Committee of Unsecured Creditors.
Before filing for bankruptcy, the Debtors initiated an orderly
wind-down process. As a part of the wind-down process, the
Debtors have ceased substantially all of their business and
terminated approximately 90% of their employees. The Debtors
continue to manage the wind-down process in attempt to deliver all
of the freight that is in their system and to retrieve their
assets.
When the Debtors filed for protection against their creditors,
they listed assets and debts between $50 million and $100 million.
MICROISLET INC: Posts $369,151 Net Loss in November 2008
--------------------------------------------------------
Microislet, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of California on Dec. 23, 2008, its monthly
operating report for the month ended Nov. 30, 2008.
The company posted a net loss of $369,151 on net sales of $186 for
the month ended Nov. 30, 2008.
At Nov. 30, 2008, the company had total assets of $541,951, total
liabilities of $13,826,338, and a stockholders' deficit of
$13,284,387.
A full-text copy of the company's monthly operating report for the
month ended Nov. 30, 2008, is available for free at:
http://researcharchives.com/t/s?3713
Based in San Diego, Microislet, Inc. -- http://microislet.com/--
operates a biotechnology company engaged in the research,
development and commercialization of patented technologies in the
field of transplantation therapy for patients with diabetes. The
company filed for Chapter 11 relief on Nov. 10, 2008 (Bankr. S.D.
Calif. Case No. 08-11388). Victor A. Vilaplana, Esq., at Foley &
Lardner LLP, represents the Debtor as counsel. The company did
not state in its petition the amounts of its estimated assets and
debts.
NEWPOWER HOLDINGS: Files Operating Report for November 2008
-----------------------------------------------------------
NewPower Holdings, Inc., filed with the U.S. Bankruptcy Court for
the Northern District of Georgia on Dec. 22, 2008, its monthly
operating report for November 2008. The Debtor had an opening
cash balance of $962 and an ending cash balance of $877.
A full-text copy of the Debtor's November 2008 monthly operating
report is available for free at:
http://researcharchives.com/t/s?3714
NewPower Holdings Inc. (Pink Sheets: NWPWQ) and its debtor-
affiliates filed for chapter 11 protection on June 11, 2002
(Bankr. N.D. Ga. 02-10836). Paul K. Ferdinands, Esq., at King &
Spalding, and William M. Goldman, Esq., at Sidley Austin Brown &
Wood LLP, represent the Debtors as counsel. When the Debtors
filed for protection from their creditors, they reported
$231,837,000 in assets and $87,936,000 in debts.
On Aug. 15, 2003, the U.S. Bankruptcy Court for the Northern
District of Georgia, Newnan Division, confirmed the Second Amended
Chapter 11 Plan with respect to NewPower Holdings, Inc., and TNPC
Holdings, Inc., a wholly owned subsidiary. That Plan became
effective on Oct. 9, 2003, with respect to the company and TNPC.
On Feb. 28, 2003, the Bankruptcy Court confirmed The New
Power Company's Plan, and that Plan has been effective as of
March 11, 2003, with respect to New Power. The New Power Company
is a wholly owned subsidiary of the company.
QUEBECOR WORLD: Files Monthly Operating Report -- Nov. 29, 2008
---------------------------------------------------------------
Quebecor World (USA), Inc., et al.
Combined Balance Sheet
As of November 29, 2008
ASSETS
Current Assets:
Cash and Cash equivalents $167,800,000
Accounts receivables 564,500,000
Trade and receivables 52,000,000
Inventories 165,800,000
Future income taxes and tax receivable 17,000,000
Prepaid Expenses 27,600,000
-------------
Total current expenses 994,700,000
-------------
Property, plant and equipment 1,131,500,000
Goodwill 336,400,000
Restricted cash 32,300,000
Future income taxes 2,600,000
Other assets 344,000,000
--------------
TOTAL ASSETS $2,841,500,000
==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities not subject to compromise:
Bank indebtedness $13,200,000
Trade payables and accrued liabilities 279,100,000
Payables to related parties 3,100,000
Income and other taxes payable 19,300,000
Current portion long-term debt 491,800,000
Combined Statement of Operations 2,921,200,000
-------------
Total current liabilities 3,727,700,000
-------------
Other liabilities not subject to compromise:
Long-term debt 7,400,000
Other liabilities 163,700,000
Future income taxes 89,700,000
Shareholders' equity:
Capital stock 1,031,300,000
Contributed surplus 470,000,000
Retained earnings (2,648,000,000)
Accumulated other comprehensive loss (300,000)
-------------
Total Equity (1,147,000,000)
--------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,841,500,000
==============
Quebecor World (USA), Inc., et al.
Combined Statement of Operations
For the month ended November 29, 2008
OPERATING REVENUES $249,400,000
Operating expenses:
Cost of sales 207,400,000
Selling, general and administrative 14,300,000
Depreciation and amortization 13,900,000
------------
Total operating expenses 235,600,000
------------
Operating income 13,800,000
------------
Financial expenses 29,000,000
Reorganization items 3,900,000
Income taxes (4,000,000)
------------
28,900,000
------------
Net loss and comprehensive loss ($15,100,000)
============
Quebecor World (USA), Inc., et al.
Combined Statement of Cash Flows
For Month Ended November 29, 2008
Cash flows from operating activities:
Net loss ($15,100,000)
Adjustments for:
Depreciation of property, plant and equipment 13,900,000
Future income taxes (4,300,000)
Amortization of other assets 1,000,000
Other 400,000
------------
(4,100,000)
------------
Net changes in non-cash balances to operations:
Accounts receivable (11,500,000)
Inventories 6,700,000
Trade payables and accrued liabilities 8,900,000
Other current assets and liabilities 2,900,000
Other non-current assets and liabilities (6,300,000)
------------
700,000
------------
Cash flows provided by (used in) operating
activities (3,400,000)
------------
Cash flows from financing activities:
Net change in bank indebtedness (1,600,000)
Repayment of long-term debt obligations und 6,700,000
------------
Cash flows provided by (used in) operating
activities 5,100,000
Cash flows from investing activities:
Additions to property, plant and equipment (5,400,000)
Restricted cash related to insolvency
proceedings 0
------------
Cash flows provided by (used in) operating
activities (5,400,000)
------------
Net changes in cash and cash equivalents (3,700,000)
Cash and cash equivalents, beginning of per 171,500,000
------------
Cash and cash equivalents, end of period $167,800,000
============
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW) -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail.
The company has operations in Mexico, Brazil, Colombia, Chile,
Peru, Argentina and the British Virgin Islands.
Ernst & Young, Inc., the monitor of Quebecor World Inc., and its
affiliates' reorganization proceedings under the Canadian
Companies' Creditors Arrangement Act, filed a petition under
Chapter 15 of the Bankruptcy Code before the U.S. Bankruptcy Court
for the Southern District of New York on September 30, 2008, on
behalf of QWI (Bankr. S.D.N.Y. Case No. 08-13814). The chapter 15
case is before Judge James M. Peck. Kenneth P. Coleman, Esq., at
Allen & Overy LLP, in New York, serves as counsel to the chapter
15 petitioner.
QWI and certain of its subsidiaries commenced the CCAA proceedings
before the Quebec Superior Court (Commercial Division) on
January 20, 2008. The following day, 53 of QWI's U.S.
subsidiaries, including Quebecor World (USA), Inc., filed
petitions under Chapter 11 of the U.S. Bankruptcy Code.
The Honorable Justice Robert Mongeon oversees the CCAA case.
Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the
Company in the CCAA case. Ernst & Young Inc. was appointed as
Monitor.
Quebecor World (USA) Inc., its U.S. subsidiary, along with other
U.S. affiliates, filed for chapter 11 bankruptcy before the U.S.
Bankruptcy Court for the Southern District of New York (Lead Case
No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter
LLP, represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
QWI is the only entity involved in the CCAA proceedings that is
not a Debtor in the Chapter 11 Cases.
As of June 30, 2008, Quebecor World's unaudited consolidated
balance sheet showed total assets of $3,412,100,000 total
liabilities of $4,326,500,000 preferred shares of $62,000,000
and total shareholders' deficit of $976,400,000.
The Hon. Robert Mongeon of the Quebec Superior Court has extended
until Dec. 14, 2008, the stay under the Canadian Companies'
Creditors Arrangement Act.
(Quebecor World Bankruptcy News, Issue No. 33; Bankruptcy
Creditors' Service Inc.,
<http://bankrupt.com/newsstand/>http://bankrupt.com/newsstand/or
215/945-7000)
SEA CONTAINERS: Debtors' Monthly Operating Report -- Oct. 31, 2008
------------------------------------------------------------------
Sea Containers, Ltd.
Unaudited Balance Sheet
As of October 31, 2008
Assets
Current Assets
Cash and cash equivalents $24,819,914
Trade receivables, less allowances
for doubtful accounts of $1.379MM 553,178
Due from related parties 375,107
Prepaid expenses and other current assets 414,387
------------
Total current assets 26,162,586
Fixed assets, net -
Long-term equipment sales receivable, net -
Investment in group companies 90,929,514
Intercompany receivables -
Investment in equity ownership interests 234,887,288
Other assets 2,413,128
------------
Total assets $354,392,516
============
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $11,787,114
Accrued expenses 98,952,942
Current portion of long-term debt 165,274,743
Current portion of senior notes 385,718,405
------------
Total current liabilities 661,733,204
Total shareholders' equity (307,340,688)
------------
Total liabilities and shareholders' equity $354,392,516
============
Sea Containers, Ltd.
Unaudited Statement of Operations
For the Month Ended October 31, 2008
Revenue $865,967
Costs and expenses:
Operating income -
Selling, general and admin. expenses (760,011)
Professional fees (4,791,980)
(Charges)/credits against intercompany
accounts 37,975,593
Impairment of investment in subsidiary
companies (3,958,342)
Forgiveness of intercompany debt -
Depreciation and amortization -
------------
Total costs and expenses 28,465,260
------------
Profit/(Loss) on sale of assets -
------------
Operating profit/(loss) 29,331,227
Other income (expense)
Investment income 21,639
Foreign exchange gains/(losses) (65,308)
Interest expense, net (3,656,443)
------------
Profit/(Loss) before taxes 25,631,115
Income tax expense 396,133
------------
Profit/(Loss) after taxes $26,027,248
============
Sea Containers Services, Ltd.
Unaudited Balance Sheet
As of October 31, 2008
Assets
Current Assets
Cash and cash equivalents $43,732
Trade receivables (1,362)
Due from related parties (GE SeaCo) 70,676
Prepaid expenses and other current assets 1,280,723
------------
Total current assets 1,393,769
Fixed assets, net 5,271
Investments 2,179,567
Intercompany receivables 1,973,622
Other assets -
------------
Total assets $5,552,229
============
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $566,601
Accrued expenses 1,111,672
Current portion of long-term debt 1,220,612
------------
Total current liabilities 2,898,885
Total shareholders' equity 2,653,345
------------
Total liabilities and shareholders' equity $5,552,229
============
Sea Containers Services, Ltd.
Unaudited Statement of Operations
For the Month Ended October 31, 2008
Revenue $666,892
Costs and expenses:
Selling, general and admin. expenses (655,493)
Professional fees (1,301,140)
Depreciation and amortization (820)
------------
Total costs and expenses (1,957,452)
------------
Gains on sale of assets 21,125
------------
Operating loss (1,269,435)
Other income (expense)
Interest income -
Foreign exchange gains or (losses) -
Interest expense, net (11,751)
------------
Loss before taxes (1,281,187)
Income tax credit -
------------
Net loss ($1,281,187)
============
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. are 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. 58;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
WELLMAN INC: Monthly Operating Report -- Ended October 31, 2008
---------------------------------------------------------------
Wellman, Inc.
Condensed Consolidated Balance Sheet
(Unaudited)
As of October 31, 2008
ASSETS
Current assets:
Cash and cash equivalents -
Accounts receivable $89,400,000
Inventories 24,200,000
Prepaid expenses and other current assets 25,100,000
Current assets held for sale -
------------
Total current assets 138,700,000
Property, plant and equipment:
Land, buildings and improvements 76,300,000
Machinery and equipment 338,500,000
CIP 4,100,000
------------
418,900,000
Less accumulated depreciation 189,800,000
------------
Net property, plant and equipment 229,100,000
Other assets 11,700,000
Noncurrent assets held for sale -
------------
Total Assets $379,500,000
============
LIABILITIES & STOCKHOLDERS' DEFICIT
Liabilities Not Subject to Compromise
Current Liabilities:
Accounts payable - trade $4,400,000
Accrued liabilities 20,300,000
Debtor in possession credit agreement 70,700,000
Other debt -
Current liabilities associated with -
assets held for sale
------------
Total current liabilities 95,400,000
Liabilities subject to compromise 526,000,000
Long-term debt -
Deferred income taxes and other
noncurrent liabilities 35,600,000
Noncurrent liabilities associated with -
assets held for sale
------------
Total Liabilities 657,000,000
Stockholders' Deficit:
Common stock -
Preferred stock 185,700,000
Paid-in capital 248,800,000
Common stock warrants 4,900,000
Accumulated other comprehensive loss -
Accumulated deficit (667,400,000)
Less common stock in treasury (49,500,000)
------------
Total Stockholders Deficit (277,500,000)
------------
$379,500,000
============
Wellman, Inc.
Consolidated Statements of Operations
(Unaudited)
For the Month Ended October 31, 2008
Net Sales $45,400,000
Cost of Sales 54,000,000
------------
Gross Profit (Loss) (8,600,000)
Selling, General and Administrative Expenses 1,700,000
Other (Income) Loss 0
------------
Operating Income (Loss) (10,300,000)
Interest Expense, Net 1,100,000
------------
Earnings (Loss) from continuing operations (11,400,000)
before reorganization items and income taxes
Reorganization Items, Net 2,500,000
------------
Earnings (Loss) from continuing operations (13,900,000)
before income taxes
Income Tax Expense (Benefit) 0
------------
Earnings (Loss) from continuing operations (13,900,000)
Earnings (Loss) from discontinued operations, 0
net of tax
------------
Net Earnings (Loss) ($13,900,000)
============
Wellman, Inc.
Simplified Statement of Cash Flows
(Unaudited)
For the Month Ended October 31, 2008
Cash flow from operating activities:
Net earnings (loss) ($9,300,000)
Adjustments to reconcile net earnings (loss) to
net cash used in operating activities:
Loss from discontinued operations, net of tax 4,600,000
Depreciation 800,000
Amortization 1,500,000
Amortization in interest expense 600,000
Deferred taxes on income 0
Reorganization Items 2,500,000
Payment of reorganization items (2,300,000)
Gain on sale of assets 0
Changes in assets and liabilities:
Accounts receivable 22,000,000
Inventories 16,700,000
Prepaid expenses and other current assets (1,600,000)
Other assets (100,000)
Accounts payable and accrued liabilities (100,000)
Other liabilities (300,000)
Other 0
------------
Net cash provided (used) by operating activities 35,000,000
Cash flows from investing activities:
Additions to property, plant and equipment (net) (100,000)
Proceeds from sale of assets 0
------------
Net cash used by investing activities (100,000)
Cash flows from financing activities:
Borrowings (Repayments) of long-term debt (44,000,000)
Dividends paid on common stock 0
Debt and equity issuance costs 0
------------
Net cash provided (used) by financing activities (44,000,000)
Discontinued Operations:
Operating activities (3,700,000)
Investing activities 10,700,000
Financing activities 0
------------
Net cash provided (used) by discontinued
operations 7,000,000
Increase (decrease) in cash and cash equivalents (2,100,000)
Cash and cash equivalents, beginning 2,100,000
------------
Cash and cash equivalents at end of period $0
============
About Wellman Inc.
Headquartered in Fort Mill, South Carolina, Wellman Inc. ([OTC]:
WMANQ.OB) -- http://www.wellmaninc.com/-- manufactures and
markets packaging and engineering resins used in food and beverage
packaging, apparel, home furnishings and automobiles. They
manufacture resins and polyester staple fiber a three major
production facilities.
The company and its debtor-affiliates filed for Chapter 11
protection on Feb. 22, 2008 (Bankr. S.D. N.Y. Case No. 08-10595).
Jonathan S. Henes, Esq., at Kirkland & Ellis, LLP, in New York
City, represents the Debtors. Lazard Freres & Co., LLC, acts as
the Debtors' financial advisors and investment bankers. Conway,
Del Genio, Gries & Co., LLC, was also retained as the Debtors'
chief restructuring advisor.
The United States Trustee for Region 2 has appointed seven members
to the Official Committee of Unsecured Creditors. Mark R.
Somerstein, Esq., at Ropes & Gray LLP, serves as the Committee's
bankruptcy counsel. FTI Consulting, Inc., acts as the panel's
financial advisors.
Wellman Inc., in its bankruptcy petition, listed total assets of
$124,277,177 and total liabilities of $600,084,885, as of Dec. 31,
2007, on a stand-alone basis. Debtor-affiliate ALG, Inc., listed
assets between $500 million and $1 billion on a stand-alone basis
at the time of the bankruptcy filing. Debtor-affiliates Fiber
Industries Inc., Prince Inc., and Wellman of Mississippi Inc.,
listed assets between $100 million and $500 million at the time of
their bankruptcy filings.
On a consolidated basis, Wellman Inc., and its debtor-affiliates
listed $512,400,000 in total assets and $730,500,000 in
liabilities as of June 30, 2008.
Wellman filed a restructuring plan before the Bankruptcy Court on
June 25, 2008. (Wellman Bankruptcy News; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
WELLMAN INC: Monthly Operating Report -- Ended November 30, 2008
----------------------------------------------------------------
Wellman, Inc.
Condensed Consolidated Balance Sheet
(Unaudited)
As of November 30, 2008
ASSETS
Current assets:
Cash and cash equivalents -
Accounts receivable $66,300,000
Inventories 19,300,000
Prepaid expenses and other current assets 21,600,000
Current assets held for sale -
------------
Total current assets 107,200,000
Property, plant and equipment:
Land, buildings and improvements 76,300,000
Machinery and equipment 338,500,000
CIP 4,100,000
------------
418,900,000
Less accumulated depreciation 190,800,000
------------
Net property, plant and equipment 228,100,000
Other assets 11,800,000
Noncurrent assets held for sale -
------------
Total Assets $347,100,000
============
LIABILITIES & STOCKHOLDERS' DEFICIT
Liabilities Not Subject to Compromise
Current Liabilities:
Accounts payable - trade $800,000
Accrued liabilities 18,600,000
Debtor in possession credit agreement 49,300,000
Other debt -
Current liabilities associated with -
assets held for sale
------------
Total current liabilities 68,700,000
Liabilities subject to compromise 526,000,000
Long-term debt -
Deferred income taxes and other
noncurrent liabilities 35,700,000
Noncurrent liabilities associated with -
assets held for sale
------------
Total Liabilities 630,400,000
Stockholders' Deficit:
Common stock -
Preferred stock 185,700,000
Paid-in capital 248,900,000
Common stock warrants 4,900,000
Accumulated other comprehensive loss -
Accumulated deficit (673,300,000)
Less common stock in treasury (49,500,000)
------------
Total Stockholders Deficit (283,300,000)
------------
$347,100,000
============
Wellman, Inc.
Consolidated Statements of Operations
(Unaudited)
For the Month Ended November 30, 2008
Net Sales $31,100,000
Cost of Sales 31,600,000
------------
Gross Profit (Loss) (500,000)
Selling, General and Administrative Expenses 1,200,000
Other (Income) Loss 200,000
------------
Operating Income (Loss) (1,900,000)
Interest Expense, Net 1,000,000
------------
Earnings (Loss) from continuing operations (2,900,000)
before reorganization items and income taxes
Reorganization Items, Net 2,800,000
------------
Earnings (Loss) from continuing operations (5,700,000)
before income taxes
Income Tax Expense (Benefit) 0
------------
Earnings (Loss) from continuing operations (5,700,000)
Earnings (Loss) from discontinued operations, 200,000
net of tax
------------
Net Earnings (Loss) ($5,900,000)
============
Wellman, Inc.
Simplified Statement of Cash Flows
(Unaudited)
For the Month Ended November 30, 2008
Cash flow from operating activities:
Net earnings (loss) ($5,900,000)
Adjustments to reconcile net earnings (loss) to
net cash used in operating activities:
Loss from discontinued operations, net of tax (200,000)
Depreciation 1,000,000
Amortization 1,400,000
Amortization in interest expense 800,000
Deferred taxes on income 0
Reorganization Items 2,800,000
Payment of reorganization items (2,400,000)
Gain on sale of assets 0
Changes in assets and liabilities:
Accounts receivable 23,100,000
Inventories 5,000,000
Prepaid expenses and other current assets 2,900,000
Other assets 0
Accounts payable and accrued liabilities (7,300,000)
Other liabilities 0
Other 0
------------
Net cash provided (used) by operating activities 21,200,000
Cash flows from investing activities:
Additions to property, plant and equipment (net) 0
Proceeds from sale of assets 0
------------
Net cash used by investing activities 0
Cash flows from financing activities:
Borrowings (Repayments) of long-term debt (21,400,000)
Dividends paid on common stock 0
Debt and equity issuance costs 0
------------
Net cash provided (used) by financing activities (21,400,000)
Discontinued Operations:
Operating activities 200,000
Investing activities 0
Financing activities 0
------------
Net cash provided (used) by discontinued
operations 200,000
Increase (decrease) in cash and cash equivalents 0
Cash and cash equivalents, beginning 0
------------
Cash and cash equivalents at end of period $0
============
About Wellman Inc.
Headquartered in Fort Mill, South Carolina, Wellman Inc. ([OTC]:
WMANQ.OB) -- http://www.wellmaninc.com/-- manufactures and
markets packaging and engineering resins used in food and beverage
packaging, apparel, home furnishings and automobiles. They
manufacture resins and polyester staple fiber a three major
production facilities.
The company and its debtor-affiliates filed for Chapter 11
protection on Feb. 22, 2008 (Bankr. S.D. N.Y. Case No. 08-10595).
Jonathan S. Henes, Esq., at Kirkland & Ellis, LLP, in New York
City, represents the Debtors. Lazard Freres & Co., LLC, acts as
the Debtors' financial advisors and investment bankers. Conway,
Del Genio, Gries & Co., LLC, was also retained as the Debtors'
chief restructuring advisor.
The United States Trustee for Region 2 has appointed seven members
to the Official Committee of Unsecured Creditors. Mark R.
Somerstein, Esq., at Ropes & Gray LLP, serves as the Committee's
bankruptcy counsel. FTI Consulting, Inc., acts as the panel's
financial advisors.
Wellman Inc., in its bankruptcy petition, listed total assets of
$124,277,177 and total liabilities of $600,084,885, as of Dec. 31,
2007, on a stand-alone basis. Debtor-affiliate ALG, Inc., listed
assets between $500 million and $1 billion on a stand-alone basis
at the time of the bankruptcy filing. Debtor-affiliates Fiber
Industries Inc., Prince Inc., and Wellman of Mississippi Inc.,
listed assets between $100 million and $500 million at the time of
their bankruptcy filings.
On a consolidated basis, Wellman Inc., and its debtor-affiliates
listed $512,400,000 in total assets and $730,500,000 in
liabilities as of June 30, 2008.
Wellman filed a restructuring plan before the Bankruptcy Court on
June 25, 2008. (Wellman Bankruptcy News; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000).
*********
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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. Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa,
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Copyright 2009. All rights reserved. ISSN: 1520-9474.
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